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Westcon International – Business model

Westcon International enables vendors of high-tech enterprise solutions to increase their channel and market penetration by supporting and developing an extensive channel of IT systems integrators, service providers and resellers.

How Westcon International creates value

Westcon International has extensive operations in over 50 countries. Westcon International has a strong foundation of vendor relationships with over 30 years' distribution success as a strategic partner to the world's leading IT brands. Westcon International has skilled employees who are dedicated to delivering outstanding performance and customer satisfaction.

Key resources

What makes Westcon International different?

  • International presence - located in over 50 countries supported by skilled employees
  • Strong relationships with industry-leading vendors
  • Extensive network of global service providers, system integrators and enterprise resellers
  • Global digital marketplace and systems capability for device, subscription, recurring offers and cloud solutions
  • Wealth of industry insight, technical expertise and decades of distribution experience

Financial capital

Net debt
US$30 million
Net working
capital US$131 million


Natural capital
  • Energy management
  • Recycling initiatives

Human capital

Employees
Over 3 700

  • 40% female
  • Employees' engagement, skills and knowledge

Social and relationship capital
  • Vendor and partner relationships
  • Customer engagements
  • Stakeholder relationships

Intellectual capital
  • Technical expertise
  • Digital specialist solutions and platform
  • Strategic partnerships

Manufactured capital
  • Warehouses (distribution centres)

Key strategic partners

Key partners

  • AWS
  • Broadcom
  • Cisco
  • Check Point
  • CrowdStrike
  • Extreme Networks
  • Juniper Networks
  • Palo Alto Networks
  • Zscaler

Key relationships

  • Customers
  • Employees
  • Vendors

Key revenue segments

Categories

  • Cyber security
  • Network infrastructure
  • Cloud computing
  • Data centre

Geographic

  • Asia-Pacific
  • Europe
  • Middle East and Africa

Key revenue drivers

  • Sales - volumes driven
  • Enterprises need to constantly refresh and update their technology capability - their increased requirement for productivity, flexibility, governance and defence from the growing security threats
  • Market share of vendors' solutions and expansion into additional geographies
Our activities
  • Technology distribution
  • Channel enablement
  • Marketing, data and analytics for demand generation
  • Digital distribution marketplace
  • Advanced technical and channel services
  • Financing and capital into the channel
  • Training and development

Impact of activities on future availability of resources

  • Improving working capital will reduce net debt over time as the division generates incremental free cash flow
  • Business activities have an impact on availability of natural resources, the impact of which is being managed through responsible business practices

Constraints on availability of resources

Availability of financing facilities and any material changes thereto may affect Westcon International's ability to fund its working capital requirements

What impacts Logicalis International's ability to create value?
What impacts Logicalis
Key outcomes for stakeholders
Shareholders
Shareholders
  • 3.3% growth in gross invoiced income
  • Increased operating profitability
  • Working capital days improved by 18 days
  • Net debt remains largely stable
  • Order intake up US$700 million year-on-year as demand continues for cyber security solutions
  • Reduced finance charges as net working capital normalises
Vendors (suppliers)
Vendors (suppliers)
  • Recognition by vendors through partner awards
  • Strong vendor relationships and focused sales
Financial institutions and debt funders
Financial institutions and debt funders
  • US$42 million interest paid to debt providers
Our communities
Our communities
  • Improvements in the communities where Westcon International's employees live and work
Our planet
Our planet
  • Energy savings
  • Reduced waste through recycling initiatives
  • Measures taken to proactively minimise the environmental impact of business activities
Our people
Our people
  • Employee training initiatives
  • Recognition of employees through performance evaluation programmes
  • Focus on employee health and wellbeing
  • Employee satisfaction and attrition
  • Over 5 700 training sessions attended and over 51 000 training hours
Customers
Customers
  • Customer satisfaction
Governments and regulators
Governments and regulators
  • Compliance with regulatory requirements
  • US$15 million in taxes
  • - Short-term value created
  • - Short-term value preserved
- Long-term value created
- Long-term value preserved
Financial capital
Financial capital
Natural capital
Natural capital
Human capital
Human capital
Social and relationship capital
Social and relationship capital
Intellectual capital
Intellectual capital
Manufactured capital
Manufactured capital
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Overview
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Overview
About this report

Overview of the Datatec group
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Who we are
Our divisions
Our operating context
Our operating environment
Our stakeholders
Our business model

Creating value through our strategy
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Our strategy
Our responsible business strategy
Strategic remuneration
Strategic risk management

Creating value through good governance
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Chair's review
Value creation through governance
Statement of commitment to good governance
Our leadership
Governance and assurance overview
Governance through our leadership

Delivering and measuring value
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Executive directors' report
Value creation at a glance
Responsible business overview
Responsible business highlights
Our communities
Our planet
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Value added statement
Executive directors' commentary on Group financial results
Westcon International – Overview
Westcon International – Business model
Westcon International – Medium-term strategic objectives
Westcon International – Strategic progress
Westcon International – Strategic risk management
Westcon International – Awards and recognition
Westcon International – Responsible business
Westcon International – Financial performance
Logicalis International – Overview
Logicalis International – Business model
Logicalis International – Medium-term strategic objectives
Logicalis International – Strategic progress
Logicalis International – Strategic risk management
Logicalis International – Awards and recognition
Logicalis International – Responsible business
Logicalis International – Financial performance
Logicalis Latin America – Overview
Logicalis Latin America – Business model
Logicalis Latin America – Medium-term strategic objectives
Logicalis Latin America – Strategic progress
Logicalis Latin America – Strategic risk management
Logicalis Latin America – Awards and recognition
Logicalis Latin America – Responsible business
Logicalis Latin America – Financial performance
Corporate and Management Consulting – Overview

Rewarding value creation
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Fair and responsible remuneration

Supplementary information
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Five-year review
Glossary
Financial and technical definitions
Contact details
Company information