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Westcon International – Strategic risk management

Key risks

Risk		Response
Impact of tariffs and consequent trade wars		Continuously monitor fluid landscape.
Global supply chain disruption (through emerging geopolitical and climate-related impacts)		Constantly monitor supply routes and options. Place additional focus on non-device-based solutions.
Liquidity and financing – availability of working capital funding		Regularly monitor funding availability, sales and collection forecasts; and engage in regular communication with providers of funding. Primary European facility term secured through September 2026.
Inventory management – fast moving high obsolete inventory resulting in excessive write-offs		Ensure stringent inventory management controls and monthly inventory reviews; and include stock rotation rights in vendor contracts.
Foreign exchange – impact of fluctuations on results and management of exposures		Ensure that Westcon International is appropriately hedged.
Macroeconomic environment		Conduct thorough market analyses and monitor macroeconomic factors in all key markets.
Failure to manage payment discounts, product rebates and allowances		Oversee prompt payment discounts, product rebates, allowances and vendor-based programmes. Monitor growth and actively manage growth in strategic areas. Maintain strong and transparent relationships with vendor partners.
Dependence on key vendors		Maintain strong and transparent relationships.
Cyber security threats		Continue to constantly enhance threat prevention and detection policies, tools and procedures. Threats are actively monitored and addressed. Disaster recovery and business continuity plans are formally documented, reviewed and tested. Phishing campaigns and mandatory security awareness training are conducted regularly throughout Westcon International.

ESG risk assessment

In FY25, Westcon International conducted a comprehensive double materiality assessment using a methodology based on the European Sustainability Reporting Standards ("ESRS"). This assessment builds upon the previous assessment conducted at the Datatec Group level in FY24 by applying a more rigorous set of requirements to ensure best practice.

The assessment involved engaging with key stakeholders for their perspectives on the most critical ESG issues facing Westcon International. The output of this engagement provided the division with list of impacts, risks, and opportunities ("IROs") which were then assessed for severity, considering scope, scale, and remediable character. Finally, a financial impact figure was applied to each IRO, allowing prioritisation of topics for both impact and financial materiality.

The most material risk categories identified were: human rights of workers in the value chain, Westcon International's employees' wellbeing and satisfaction, data privacy and cyber security and anti-competitive practices.

The results of the assessment provide management with confidence in its current strategy. They confirmed that the topics which are already being prioritised within Westcon International's responsible business strategy are also those that emerged as most material in the double materiality assessment.