DATATEC GROUP UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2016

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1 Technology Distribution Integration & Managed Services Consulting & Research UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2016

2 AGENDA Results summary, market conditions & operational strategy Jens Montanana, Datatec Group CEO Financial results Ivan Dittrich, Datatec Group CFO Operational review Jens Montanana, Datatec Group CEO Current trading & prospects Jens Montanana, Datatec Group CEO Datatec

3 Technology Distribution Integration & Managed Services Consulting & Research RESULTS SUMMARY, MARKET CONDITIONS & Datatec 2016

4 FINANCIAL RESULTS SUMMARY Revenue H1 FY17 $3.04bn H1 FY16 $3.29bn Gross margin H1 FY % H1 FY % Underlying EPS H1 FY US H1 FY US EBITDA Dividends H1 FY17 $69m H1 FY16 $81m H1 FY US H1 FY16 8 US Datatec

5 MARKET CONDITIONS Macro conditions still challenging Strong US$ persists Improved confidence in emerging markets Strong demand for cloud services & security infrastructure Datatec

6 CORE FOCUS AREAS Westcon transformation (SAP/BPO) expected to end by June 2017 Improve operating margins Increase ROIC Grow managed services Embracing new & disruptive cloud technologies Datatec

7 Technology Distribution Integration & Managed Services Consulting & Research FINANCIAL RESULTS Datatec 2016

8 FINANCIAL PERFORMANCE US$m H1 FY17 H1 FY16 Growth % Revenue 3, ,285.9 (8%) Gross profit (2%) Gross margin % 13.8% 13.1% Operating costs (350.9) (349.6) 0.4% Operating cost margin % 11.6% 10.6% EBITDA (15%) EBITDA% 2.3% 2.5% Depreciation & amortisation (28.2) (24.2) 17% Operating profit (28%) Revenues impacted by strong US$ Gross margins expanded to 13.8% EBITDA impacted by ongoing restructuring costs in Westcon Operating profit % 1.3% 1.7% Datatec

9 FINANCIAL PERFORMANCE CONTINUED US$m H1 FY17 H1 FY16 Growth % Operating profit (28%) Net finance costs (10.3) (11.3) (9%) Profit before tax (24%) Underlying EPS (US cents) (25%) HEPS (US cents) (24%) Lower finance charges in Logicalis LATAM Effective tax rate 34% Underlying EPS excludes restructuring costs Adhering to dividend policy of fixed 3x cover Datatec

10 EBITDA BRIDGE US$m EBITDA adjustments Reported EBITDA Restructuring costs Logicalis UK Normalised EBITDA H1 FY16 EBITDA Datatec

11 CONTRIBUTION PER DIVISION REVENUE GROSS PROFIT EBITDA* 1% 2% 1% 25% 1% 23% H1 FY16 76% H1 FY17 74% 42% 2% H1 FY16 39% 59% H1 FY17 56% 43% 40% H1 FY16 60% H1 FY17 56% Larger contribution from Logicalis Westcon Logicalis Consulting & Financial Services * Contribution to EBITDA is calculated before Corporate costs Datatec

12 REVENUE AND GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY REVENUE GROSS PROFIT 11% 33% 7% 9% 10% 35% H1 FY16 32% 14% H1 FY17 14% 35% 33% 13% 5% 30% 8% 10% 28% H1 FY16 32% 22% H1 FY17 19% Revenues impacted by strong US$ Increased GP contribution from North America and Asia-Pacific Geographic mix affected margins North America Latin America Europe Asia-Pacific MEA Datatec

13 BALANCE SHEET SUMMARY US$m H1 FY17 FY 2016 H1 FY16 Assets 3, , ,231.5 Non-current assets Goodwill Acquired intangible assets & software Other non-current assets Current assets 2, , ,526.3 Equity and Liabilities 3, , ,231.5 Shareholders funds Non-controlling interests Long-term liabilities Amounts due to vendors Current liabilities 2, , ,222.4 Increase in receivables $4.12 NAV per share 1.1 current ratio Increase in net debt Net debt (251.7) (205.4) (145.8) Datatec

14 CASH FLOW US$m H1 FY17 H1 FY16 EBITDA Working capital changes (41.1) (40.6) Other working capital changes (4.7) (22.5) Other movements Cash generated from operations Net finance costs paid (9.6) (11.3) Taxation paid (21.3) (24.3) Net cash outflow from operating activities (6.7) (14.0) Net cash outflow for acquisitions (1.9) (1.3) Net cash outflow from other investing activities (39.4) (24.8) Capital distributions & dividends shareholders (14.7) (8.7) Net cash inflow from financing activities Decrease in cash and cash equivalents (44.0) (10.1) Cash & cash equivalents at beginning of year (132.7) (22.1) Translation difference on cash & cash equivalents 11.2 (9.3) Cash and cash equivalents at end of period (165.5) (41.5) Improved cash flows from operating activities Increased capital expenditure Datatec

15 CASH FLOW FROM OPERATING ACTIVITIES US$m (78) 1 (5) (10) (21) 12.3 (7) (32.9) EBITDA Increase in receivables Decrease in inventories Increase in payables Other working capital changes Other movements Net finance costs Taxation paid Net cash outflow from operating activities Datatec

16 Technology Distribution Integration & Managed Services Consulting & Research REVIEW Datatec 2016

17 Technology Distribution Integration & Managed Services Consulting & Research Datatec 2016

18 FINANCIAL PERFORMANCE US$m H1 FY17 H1 FY16 Growth % Revenue 2, ,510.6 (10%) Gross profit (7%) Gross margin % 10.5% 10.1% Operating costs (193.6) (201.4) (4%) Operating cost margin % 8.6% 8.0% EBITDA (18%) EBITDA% 1.9% 2.1% Operating profit (30%) Operating profit % 1.2% 1.6% Revenue decreases across all regions except Asia-Pacific Improved gross margins: driven by product mix with growth in Security sales Smaller foreign exchange expense drives decreased operating costs Decrease in EBITDA due to lower profitability in Latin America and increased transformation costs Datatec

19 REVENUE AND GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY REVENUE GROSS PROFIT North America Latin America Europe 9% 9% Asia-Pacific 11% 11% 10% H1 FY16 37% 36% 13% 13% 26% 11% H1 FY16 26% MEA 33% 9% 33% 17% 15% 34% H1 FY17 10% 37% H1 FY17 Datatec

20 REVENUE % BY BUSINESS UNIT, CUSTOMER AND TECHNOLOGY CATEGORY BUSINESS UNIT CUSTOMER TECHNOLOGY 10% 14% 45% 20% 15% 17% 33% 38% 58% 55% H1 FY16 H1 FY17 42% 20% H1 FY16 H1 FY17 65% 70% 26% 24% H1 FY16 26% H1 FY17 22% Comstor Westcon Reseller System integrator Service provider Security Networking Unified communications Data centre & other Datatec

21 HISTORICAL QUARTERLY SALES US$m FY 2015 FY 2016 FY Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Datatec

22 GROSS PROFIT AND EBITDA BY GEOGRAPHY GROSS PROFIT EBITDA US$m US$m 350 H1 FY16 H1 FY17 80 H1 FY16 H1 FY % (20) (40) (31) (33) - North America Latin America Europe Asia-Pacific MEA Total (60) North America Latin America Europe Asia-Pacific MEA Central costs Total Datatec

23 WORKING CAPITAL US$m H1 FY17 FY 2016 H1 FY16 Accounts receivable 1, , ,208.2 DSO (days) Inventory Inventory turns 11.6x 9.8x 11.4x Accounts payable (1,161.4) (1,093.0) (1,108.7) DPO (days) Net working capital Extended receivables in many emerging markets Improved inventory performance Net debt impacted by capital expenditure and purchase of Angola bonds NWC (days) Current ratio Net debt (248.6) (271.0) (158.6) Datatec

24 Datatec (700) (600) (500) (400) (300) (200) (100) - Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 NET DEBT

25 Continued growth in security, cloud and services BPO & SAP transformation to end by June 2017 Emerging markets still challenging, but improving US dollar expected to remain strong Developing international Microsoft Cloud Service Provider relationship Datatec

26 Technology Distribution Integration & Managed Services Consulting & Research Datatec 2016

27 FINANCIAL PERFORMANCE US$m H1 FY17 H1 FY16 Growth % Revenue % Gross profit % Gross margin % 23.2% 22.5% Operating costs (142.4) (133.7) 7% Operating cost margin % 18.8% 17.8% EBITDA (7%) EBITDA% 4.4% 4.7% Total revenue up 1% Services revenue up 9% Gross margin up to 23.2% EBITDA down 7% Operating profit (17%) Operating profit % 2.7% 3.2% Datatec

28 REVENUE AND GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY REVENUE 11% GROSS PROFIT 12% North America Latin America Europe Asia-Pacific 32% 31% 8% H1 FY16 32% 31% 27% 31% 9% H1 FY16 30% 36% 29% H1 FY17 26% 30% H1 FY17 25% Datatec

29 REVENUE BY SEGMENT AND PRODUCT REVENUE BY VENDOR SEGMENT VENDOR 22% 20% Product 33% 22% Cisco 12% 11% H1 FY16 69% Professional services Maintenance and managed services 7% 12% H1 FY16 59% 50% IBM HPE Other H1 FY17 66% 6% H1 FY17 11% Datatec

30 GROSS PROFIT AND EBITDA BY GEOGRAPHY GROSS PROFIT EBITDA US$m US$m H1 FY16 H1 FY H1 FY16 H1 FY North America Latin America Europe Asia-Pacific Total (5) (10) 11 North America Latin America Europe Asia-Pacific Central costs Total 4 (5) (3) Datatec

31 WORKING CAPITAL US$m H1 FY17 FY 2016 H1 FY16 Deferred revenue Inventory Inventory days (excluding spares stock) Accounts receivable DSO (days) Accounts payable (259.1) (266.4) (191.4) Reduced net cash position due to $47m spent on acquisitions in last 12 months DPO (days) Net working capital Net cash * * Excluding lease liabilities, Datatec loans and other borrowings Datatec

32 Global markets for IT products and services remain resilient Logicalis developing its position in higher growth segments such as analytics and security Signs of recovery in Brazil with growing order backlog Interesting opportunities to expand in LATAM and Asia Datatec

33 Technology Distribution Integration & Managed Services Consulting & Research CURRENT TRADING & PROSPECTS Datatec 2016

34 CURRENT TRADING AND PROSPECTS Expect H2 to be sequentially & comparatively better Underlying EPS for the full year expected to improve Expect emerging markets to continue with slow recovery Continue internal focus to drive further operating leverage Datatec

35 Technology Distribution Integration & Managed Services Consulting & Research QUESTIONS Datatec 2016

36 DEFINITIONS UNDERLYING EARNINGS Excluding impairment of goodwill and intangible assets, profit or loss on sale of investments and assets, amortisation of acquired intangible assets, unrealised foreign exchange movements, acquisition-related adjustments, fair value movements on acquisition-related financial instruments, restructuring costs relating to fundamental reorganisations and the taxation effect on all of the aforementioned CONSTANT CURRENCY The pro forma constant currency information, which is the responsibility of the Datatec directors, presents the Group s revenue for the current year had it been translated at the average foreign currency exchange rates of the prior year. This information is for illustrative purposes only and because of its nature, may not fairly present the Group s revenues. To determine the revenues in constant currency terms, the current financial reporting period s monthly revenues in local currency have been converted to US dollars at the average monthly exchange rates prevailing over the same period in the prior year. The calculation has been prepared for each of the Group s currencies, materially being that of the British Pound, Euro, Brazilian Real, Australian Dollar, Canadian Dollar, Singapore Dollar, Mexican Peso and South African Rand Datatec

37 DISCLAIMER This presentation may contain statements regarding the future financial performance of the Group which may be considered to be forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty, and although the Group has taken reasonable care to ensure the accuracy of the information presented, no assurance can be given that such expectations will prove to have been correct. The Group has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. It is important to note, that: unless otherwise indicated, forward-looking statements indicate the Group s expectations and have not been reviewed or reported on by the Group s external auditors; actual results may differ materially from the Group`s expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate; the Group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these forward-looking statements; and the Group disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, other than as required by the JSE Limited Listings Requirements. Datatec

DATATEC GROUP AUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018

DATATEC GROUP AUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018 Technology Distribution Integration & Managed Services Consulting & Research AUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018 AGENDA Results summary, overview & strategic update Jens Montanana,