Datatec Group

HSBC – South Africa Conference

3 December 2012

Jens Montanana – Datatec Group, CEO

2

Datatec Group

• Datatec is a global ICT solutions and services Group

- More than 6000 employees

- Operations in over 50 countries

• Holding company structure for three complimentary lines of business:

– Technology division: global distribution of advanced networking, security and unified communications

products (Westcon Group)

– Integration division: ICT infrastructure solutions and services (Logicalis)

– Consulting division: strategic and technical consulting (Analysys Mason, Intact and Via Group)

• Positioned as a multi-play investment opportunity in networking, security and unified communications

technologies

• Long term strategy to deliver sustainable above average returns to shareholders by:

– Focusing on organic growth in the faster growing sectors of the ICT market

– Geographic expansion

Overview

3

Datatec Group Highlights

* Excluding goodwill and intangibles impairment, amortisation of acquired intangible assets, acquisition related adjustments,

profit or loss on sale of assets and businesses, fair value movements on acquisition related financial instruments and

unrealised foreign exchange movements

• Revenues increase by 7% to $2.62 billion (H1 FY12: $2.44 billion)

• Underlying* EPS up 8% to 23.5 US cents (H1 FY12: 21.8 US cents)

• Reduced leverage due to lower organic growth and higher opex at Westcon

• Significant expansion across Latin America

• Interim capital “dividend” distribution increases to 8 US cents from 7 US cents

Highlights – H1 2013

Highlights – FY 2012

• Revenue $5.03 billion, up 17%

• EBITDA $190.2 million, up 34%

• Underlying* earnings per share of 47,9 cents, up 26%

• Record financial results at all levels

• Final capital “dividend” distribution of 9 US cents (full year 16 US cents)

4

Datatec Group Business stream analysis as at 31 August 2013

H1 2013

Revenue

19%

8%

73%

Distribution

ICT Solutions

Services

H1 2012

74%

7% 19%

H1 2013

24%

19%

57%

24%

H1 2012

19%

57%

Gross profit

5

Trading Update

• Third quarter Westcon performance was below expectations and showed contraction

› European GDP expected to contract in Q4 according to estimates

› North American supply chain constraints due to Hurricane Sandy

› Weak demand from US Federal sector

• Investment slowdown as American “fiscal cliff” approaches

• Conditions continue to deteriorate in Europe

• Logicalis performance remains resilient

Dean Douglas, CEO Westcon

7

Agenda

Westcon Today

Industry Trends

Game Changers for Growth

Wrap-up

8

Westcon Today

Customers (70 Countries)

Westcon Group $4 bn in Distribution

100 Information Technology Vendors

Nortel

Nokia

Vendor

Resellers System Integrators Service Providers

17% 23% 60%

9

Global Footprint

We are present in 55 countries

70+ sales offices and 20+ logistics/staging facilities

Logistics/Staging Facilities

Regional Sales Offices

10

Revenue & EBITDA History

Revenue ($B) EBITDA ($M)

$0

$500

$1 000

$1 500

$2 000

$2 500

$3 000

$3 500

$4 000

$4 500

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

$0

$20

$40

$60

$80

$100

$120

$140

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

$1.6 $1.8

$1.9 $2.1

$2.4

$3.0 $3.1 $2.8

$3.2

$3.7

$27 $34

$28

$69

$88

$108

$68

$80

$105

$133

11

Revenue Trend

FY 2005 FY 2013P

• Revenue increased 99% from $2.2B in 2005 to $4.3B in the 2013P

• Regional Revenue CAGR’s were 4% (NA), 41% (LA), 10% (EMEA) and 14% Asia Pacific

36%

6% 44%

14%51%

1%

41%

7%

North America

Latin America

EMEA

Asia Pacific

12

EBITDA Trend

FY 2005 FY 2013P

82%

2%

5%

6%

39%

9%

41%

12%North America

Latin America

EMEA

Asia Pacific

• Profit (EBITDA) increased over 550% from 2005 to the 2013P

• Regional EBITDA CAGR’s were 6% NA, 41% LA, 39% EMEA and 26% APAC

13

Customers & Segments

Reseller 59%

System Integrator 27%

Service Provider 14%

Total 100%

Segment Customers% of Total

• System Integrators comprise 3 of global top 10 customers

• BT largest global customer at 3% of revenues

• 350 Service Providers customers require multi-national focus, GPS and other capabilities

• Top 10 customers only 12-13% of revenue

14

Geo Diversity Through Acquisition

Europe

• Triple AcceSSS (Jul ‘12)

• entrada Kommunikations GmbH (Jul ‘11)

• Crane (Apr ‘07)

Africa

• Comztek (Nov ‘12)

• Sentronics (Nov ‘11)

• Biodata (Sept ‘10)

• Sparnoon-Dynatech (Jun ’07)

Asia-Pac

• Netpoleon (Feb ‘12)

• Datastor (Oct ‘09)

• Inflow (Sept ‘08)

Latin America

• Afina (Jul ‘12)

• Cernet (Oct ‘07)

North America

• ReView Video (Jul ‘07)

15

Organic Initiatives

• Westcon Solutions – January, 2012

› Opened offices in Taiwan, China (Shanghai), Singapore and Hong Kong

• Westcon appointed as Cisco distributor in Brazil – December 2007

› Expanded to Mexico – August, 2011

• Global Cisco Agreement – May, 2010

› Created Comstor Worldwide

• F5 Global Agreement – July, 2012

• Global Procurement Services Organization – March, 2010

› Global deployments and procurement

• Opened offices in Eastern Europe and the Nordic countries

16

ERP System Evolution

Where we were

• 10+ year old JD Edwards platform

• 1,000+ customizations created system quirks and stagnant processes

• System quirks became business process inefficiencies

• Enhancements became cost prohibitive

• Poor performance in a virtualized environment

Where we are

• SAP rollout with single global template and single set of global business processes

• Deployment plans included extensive change management & training

• Implemented in North America during Fiscal Year 2013

• Able to quote, order, pick, pack, ship, invoice on day-one of each deployment

Where we are headed

• AsiaPacific in the first half of fiscal year 2014

• Subsequent deployments every 5-6 months Europe/Middle East, LATAM, Africa

17

Agenda

Westcon Today

Industry Trends

Game Changers for Growth

Wrap-up

18

Evolving Role of Distribution

• Logistics including inventory and shipment

• Fulfillment cycle financing

• Product expertise and marketing programs

• Solution expertise, Technical support

• Partner education and enablement

• Services to accelerate adoption

• Solution Integration

• XaaS Aggregation (Cloud)

• Partner Services

• Global Deployment Capability

+

+

19

IT Industry Trends

IT Industry

Disruption Factor

2010 2000 1990 1980

IT Evolution

10

8

6

4

2

0

Client/Server

Internet/Web

.com

PDA

VoIP

Broadband

iPhone/iPad

& Mobility

Netbook

100Mb

Ethernet

PC

WiFi

56K

Modem

Mini

Unix WS Virtualization

Y2K

5

9 9 8

5 5

6

2 2

7

3

8 7 7

3

20

Market Trends: BYOD / MDM

Gartner Group IT Survey

• Key area for investment in 2013 by IT organisations

Bring Your Own Device (BYOD)

• Connecting personal devices (smart phones, laptops) to corporate network

Mobile Device Management (MDM)

• Strategy for maximizing/securing mobile communications across corporate

network

21

Agenda

Westcon Today

Industry Trends

Game Changers for Growth

Wrap-up

22

Game Changers for Growth

Geographic expansion

• Broaden geographic footprint to mitigate reliance on any marketplace

• Create scale through vendor and skills portfolio

• Greater vendor relevance

• Leverage global systems and regionally based management

• Manage global deployments

23

Game Changers for Growth

Technology portfolio

• Software, Server, Storage and Services (“4S”)

• Will not disrupt specialty nature of our business model

• Address new market requirements for Unified Communications and Security

• Create integrated solutions for vendors moving away from specialty

hardware to software only models

• Serve new virtualization markets and trends

24

Agenda

Westcon Today

Industry Trends

Game Changers for Growth

Wrap-up

25

Summary

Mitigating reliance on a few markets

• Solid presence across six continents

• Both organic and through acquisition

• 2/3rd of revenues outside North America

Addressing market trends

• Technology trends with innovative solutions

• Industry challenges as value based distribution evolves

Executing a strategy that differentiates Westcon

• Creating value through global coverage

• Augmenting portfolio to address market requirements