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

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1 Technology Distribution Integration & Managed Services Consulting & Research AUDITED PROVISIONAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018

2 AGENDA Results summary, overview & strategic update Jens Montanana, Datatec Group CEO Financial results Ivan Dittrich, Datatec Group CFO Operational review Jens Montanana, Datatec Group CEO Current trading, prospects & strategic roadmap Jens Montanana, Datatec Group CEO Datatec

3 Technology Distribution Integration & Managed Services Consulting & Research RESULTS SUMMARY, & Datatec 2018

4 FINANCIAL RESULTS SUMMARY Revenue FY 2018 $3.92bn FY 2017 Re-presented $3.86bn Gross margin FY % FY 2017 Re-presented 16.1% Special dividend $350m distributed to shareholders Cash received on disposals $672m Tangible net asset value FY 2018 $452.0m FY 2017 $263.9m INTERNATIONAL Datatec

5 Value unlock through disposals $350 million dividend paid in January 2018 Solid Logicalis results & positive outlook Challenging year for Westcon International recovery underway Stronger balance sheet, reduced debt & improved tangible net worth INTERNATIONAL Datatec

Westcon International re-organisation Combining Datatec & Westcon International Group functions Significant multi-year project in Logicalis LATAM

6 Westcon International re-organisation Combining Datatec & Westcon International Group functions Significant multi-year project in Logicalis LATAM Logicalis US & UK remodelled with improved services delivery Logicalis consolidates position in LATAM with key acquisition in Chile INTERNATIONAL Datatec

7 Technology Distribution Integration & Managed Services Consulting & Research FINANCIAL RESULTS Datatec 2018

8 FINANCIAL PERFORMANCE FY 2017 US$m FY 2018 Re-presented % Movement Revenue 3, , % Gross profit % Gross margin % 16.2% 16.1% Operating costs (609.3) (593.3) 3% Operating cost margin % 15.5% 15.4% EBITDA (8%) EBITDA% 0.7% 0.8% Depreciation & amortisation (51.6) (52.3) (1%) Investment & intangible asset impairments (56.1) - Financial performance impacted by weaker Westcon International performance Reduction in amortisation charge Impairment of capitalised development costs (mainly SAP assets) Operating loss (81.0) (23.3) 248% Operating loss % (2.1%) (0.6%) * Includes Datatec consolidation adjustments INTERNATIONAL Datatec

9 FINANCIAL PERFORMANCE CONTINUED FY 2017 US$m FY 2018 Re-presented % Movement Operating loss (81.0) (23.3) 248% Net finance costs (18.4) (13.8) 33% Loss before tax (99.4) (31.8) 213% Profit from discontinued operations % Underlying EPS (US cents) (5.6) 11.0 (151%) HEPS (US cents) (19.1) 2.0 (1,055%) Increase in finance costs in Logicalis due to large Latin American deal Profit from discontinued operations includes gain on disposal Underlying EPS lower due to lower Westcon International INTERNATIONAL Datatec

10 FINANCIAL PERFORMANCE DISCONTINUED OPERATIONS US$m FY 2018 FY 2017 After tax profit for the period Disposal group After tax profit for the period Westcon Americas After tax profit for the period SMC Gain on disposal of subsidiary Consideration received Net assets disposed of (383.0) - Cumulative loss on disposal group reclassified from equity (57.4) - Transaction related costs incurred on disposal (35.2) - Net assets disposed of includes goodwill of $247m de-recognised & capitalised development expenditure of $33m de-recognised Transitional services provided to SYNNEX FY18 (15.0) - Transitional services provided to SYNNEX FY19 (15.0) - Profit from discontinued operations INTERNATIONAL Datatec

11 ADJUSTED EBITDA BRIDGE US$m EBITDA Restructuring costs - Westcon ** Adjusted for ueps adjustments Restructuring costs - Logicalis Unrealised FX Adjusted** EBITDA FY 2017 adjusted** EBITDA (Re-presented) INTERNATIONAL Datatec

12 CONTRIBUTION PER DIVISION REVENUE GROSS PROFIT 1% 3% 40% 1% 2% 41% 36% Larger contribution from Logicalis FY 2017^ FY 2017^ 38% 61% 59% 61% 57% FY 2018 FY 2018 Westcon International Logicalis Consulting & Financial Services ^Re-presented INTERNATIONAL Datatec

13 REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY REVENUE GROSS PROFIT 9% 10% 5% 17% 18% 17% 10% 12% FY 2017^ 50% 11% 14% 19% 5% 20% 17% FY 2017^ 16% 42% 19% Increased contribution from Latin America North America impacted by reduced product sales in Logicalis FY 2018 FY % 40% North America Latin America Europe Asia-Pacific MEA ^Re-presented INTERNATIONAL Datatec

14 BALANCE SHEET SUMMARY - REPORTED US$m FY 2018 FY 2017 Assets 2, ,484.9 Non-current assets Goodwill Acquired intangible assets & software Other non-current assets Current assets 2, ,698.5 Equity & Liabilities 2, ,484.9 Shareholders funds Non-controlling interests Long-term liabilities Amounts due to vendors Current liabilities 1, ,450.4 Net debt (6.4) (396.5) IFRS comparatives show full balance sheet of prior years Movements from prior year mainly due to disposals Goodwill for Westcon de-recognised De-recognition (& impairment) of capitalised development expenditure Substantial improvement in net debt INTERNATIONAL Datatec

15 CASH FLOW US$m FY 2018 FY 2017 EBITDA (Continuing & discontinued ops) Working capital changes (60.2) (184.6) Other working capital changes (13.5) 12.7 Other movements Cash utilised in from operations 17.6 (37.3) Net finance costs paid (24.8) (25.3) Taxation paid (43.4) (43.3) Net cash outflow from operating activities (50.6) (105.9) Net cash outflow for acquisitions (10.7) (1.9) Net cash inflow from disposal of discontinued operations Net cash outflow from other investing activities (50.9) (67.8) Dividends to shareholders (244.2) (20.9) Share repurchases (34.6) - Proceeds on disposal of 10% of Westcon International Net cash inflow from other financing activities Increase/(decrease) in cash & cash equivalents (179.1) Cash & cash equivalents at beginning of year (299.9) (132.7) Translation difference on cash & cash equivalents Cash & cash equivalents at end of period Continuing ops (299.9) Net cash outflow from operating activities Discontinued ops (49.7) (18.6) Net cash outflow from investing activities Discontinued ops (2.7) (1.5) Net cash outflow from financing activities Discontinued ops 8.2 (0.1) Significant improvement in working capital cash flows Cash from disposal includes net debt of Westcon Americas disposed of Cash dividend of $244m paid INTERNATIONAL Datatec

16 CASH FLOW FROM OPERATING ACTIVITIES US$m (258) 29 (14) 33 (25) (43) (51) 12.3 (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 INTERNATIONAL Datatec

17 Technology Distribution Integration & Managed Services Consulting & Research OPERATIONAL REVIEW Datatec 2018

18 Technology Distribution Integration & Managed Services Consulting & Research Datatec 2018

19 FINANCIAL PERFORMANCE US$m FY 2018 FY 2017 Re-presented % Movement Revenue 1, , % Gross profit % Gross margin % 25.0% 24.1% Operating costs (305.5) (277.8) 10% Operating cost margin % 19.5% 18.9% EBITDA % EBITDA% 5.5% 5.2% Operating profit % Organic services up 12% Revenue increases in Latin America, Asia-Pacific & Europe Gross margin improvement driven by services mix & favourable rebates Operating costs increase due to restructuring costs in US+UK Cisco Global Gold Operating profit % 3.8% 3.5% INTERNATIONAL Datatec

20 REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY 14% REVENUE GROSS PROFIT 14% North America Latin America Europe & SA Asia-Pacific 28% 29% 11% 31% FY 2017^ 24% 28% 25% 12% 34% FY 2017^ 27% 29% 29% FY % FY % ^Re-presented INTERNATIONAL Datatec

21 REVENUE BY SEGMENT & PRODUCT REVENUE BY VENDOR SEGMENT VENDOR 24% 30% 13% 22% FY 2017^ 13% 65% 63% Product Professional services Maintenance & managed services 5% 33% 6% 10% FY 2017^ 51% 56% Cisco IBM HPE Other FY % FY 2018 ^Re-presented INTERNATIONAL Datatec

22 GROSS PROFIT & EBITDA BY GEOGRAPHY GROSS PROFIT EBITDA US$m US$m FY 2017^ FY FY 2017^ FY North America Latin America Europe & SA Asia-Pacific Total (20) North America (5) (9) Latin America Europe & SA Asia-Pacific Central costs Total ^Re-presented INTERNATIONAL Datatec

23 WORKING CAPITAL CONTINUING OPERATIONS US$m FY 2018 FY 2017 Re-presented Deferred revenue (97.2) (77.3) Inventory Inventory days (excluding spares stock) Accounts receivable DSO (days) Other receivables and prepayments Accounts payable (304.4) (258.7) Working capital impacted by: Latin America major multi-year project win Asia-Pacific - acquisition of PSI (Packet Systems Inc.) DPO (days) Net working capital Net debt (139.5) (20.4) INTERNATIONAL Datatec

24 SMC AT A GLANCE US$m FY 2018 FY 2017 FY 2016 FY 2015 Revenue Gross profit Gross margin % 21.2% 22.1% 28.8% 26.4% Operating costs (3.5) (6.6) (6.2) (7.2) Operating cost margin % 18.1% 15.7% 20.1% 18.6% Proceeds received on sale: $42m Original purchase price paid : $4.7m EBITDA EBITDA% 3.1% 6.4% 8.7% 7.8% INTERNATIONAL Datatec

25 Growth in IT products and services that drive cloud based solutions Strengthening Brazilian economy & large LATAM project win Organic & inorganic expansion opportunities in new technologies Higher US$ interest rates & forex volatility expected to continue INTERNATIONAL Datatec

26 Technology Distribution Integration & Managed Services Consulting & Research INTERNATIONAL Datatec 2018

27 INTERNATIONAL FINANCIAL PERFORMANCE US$m FY 2018 FY 2017 Re-presented % Movement Revenue 2, ,352.8 (2%) Gross profit (11%) Gross margin % 9.8% 10.8% Operating costs (275.5) (288.1) (4%) Operating cost margin % 11.9% 12.2% EBITDA loss (48.1) (33.7) 43% EBITDA% (2.1%) (1.4%) Operating loss (127.9) (61.1) 109% Operating loss % (5.5%) (2.6%) Sales decline 2% due to lower results in MEA Gross margins decline in Europe post BPO transition & new system implementation Certain central cost reductions partly implemented in reporting period EBITDA decline driven by lower revenues reduced gross profits Operating loss includes $56m in impairment charges INTERNATIONAL Datatec

28 INTERNATIONAL REVENUE & GROSS PROFIT % CONTRIBUTION BY GEOGRAPHY 15% REVENUE GROSS PROFIT 13% Europe Asia-Pacific MEA 16% 13% 21% 21% FY 2017^ FY % 64% 27% 22% FY 2017^ 65% FY % ^Re-presented INTERNATIONAL Datatec

29 INTERNATIONAL REVENUE % BY BUSINESS UNIT, CUSTOMER & TECHNOLOGY CATEGORY BUSINESS UNIT CUSTOMER TECHNOLOGY 19% 16% 45% 21% 18% 24% 29% 53% FY 2017^ 47% FY 2017^ 54% FY 2017^ 55% 27% 25% 54% 31% 29% 29% FY 2018 FY 2018 FY % Comstor Westcon Reseller System integrator Service provider Security Networking Unified communications Data centre & other ^Re-presented INTERNATIONAL Datatec

30 INTERNATIONAL HISTORICAL QUARTERLY SALES US$m FY 2016^ FY 2017^ FY Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 ^Re-presented INTERNATIONAL Datatec

31 INTERNATIONAL GROSS PROFIT & EBITDA BY GEOGRAPHY GROSS PROFIT EBITDA US$m US$m FY 2017^ FY FY 2017^ FY (20) (2) 3.3% (14) (12) Europe Asia-Pacific MEA Total (40) (60) (80) (34) (46) (48) (63) Europe Asia-Pacific MEA Central costs+ Total ^Re-presented + $15m (transition costs) reallocated to profit from discontinued operations in FY18 INTERNATIONAL Datatec

32 INTERNATIONAL WORKING CAPITAL CONTINUING OPERATIONS US$m FY 2018 FY 2017 Re-presented Accounts receivable DSO (days) Inventory Inventory turns 10.5x 7.8x Accounts payable (588.6) (600.0) DPO (days) Net working capital NWC (days) Improved DSO Significant improvement in inventory turns in both EMEA & Asia-Pacific Improved NWC metrics drives reduction in debt Current ratio Net debt (131.8) (300.2) INTERNATIONAL Datatec

33 INTERNATIONAL AMERICAS AT A GLANCE SOLID RETURN ON DISPOSAL US$m FY MONTHS FY 2017 FY 2016 FY 2015 Revenue 1, , , ,223.5 Gross profit Gross margin % 8.4% 9.3% 9.3% 10.1% Operating costs (64.4) (114.4) (111.1) (120.1) Operating cost margin % 5.7% 5.2% 4.9% 5.4% $600m cash on closing Earn-out TBD EBITDA * EBITDA% 2.7% 4.0% 4.4% 4.7% * Includes $1.6 million Spanish property impairment (which was part of disposal group) INTERNATIONAL Datatec

34 INTERNATIONAL TOP 10 FY19 PRIORITIES Focus on revenue growth, margin improvement and profitability Working capital normalisation and improving cash flow Africa transformation, transition from loss to profit Leverage technology automation around SAP and customer-supplier tools Reverse BPO to improve customer service and transaction execution Shared services centres in SA and Philippines for EMEA and Asia-Pacific Continued focus on Comstor-Cisco differentiation Expand security portfolio in emerging technologies Deployment of digital distribution technology Cloud/aaS enabled ERP Reduce ongoing central costs to below 1% of revenue CUSTOMER SUCCESS SOLUTIONS & SERVICES WINNING TEAM EXECUTION EXCELLENCE DIGITAL ENABLEMENT INTERNATIONAL Datatec

35 INTERNATIONAL CENTRAL COSTS US$m Continuing SG&A FY17 Actual 63 YoY change FY18 Actual* FY19 Target FY20 Target Split is 1/3 general operating costs, 2/3 IT operating costs Targeting approximately $33m in costs from next year FY20 Continue to look for opportunities to reduce costs + $15m (transition costs) reallocated to profit from discontinued operations in FY18, reducing the reported amount to $46m. Includes restructuring costs in both FY18 and FY19. INTERNATIONAL Datatec

INTERNATIONAL Return to revenue growth, margin expansion & improved profitability Continued review of operational efficiencies & cost management Improve working

36 INTERNATIONAL Return to revenue growth, margin expansion & improved profitability Continued review of operational efficiencies & cost management Improve working capital & cash generation Leverage SAP platform & digital transformation tools Encouraging progress on internal delivery of shared services INTERNATIONAL Datatec

37 Technology Distribution Integration & Managed Services Consulting & Research CURRENT TRADING, PROSPECTS & ROADMAP Datatec 2018

ROADMAP Continued share buyback program to continue post AGM 12 month target to return to profitability in Westcon International De-leverage by improving working capital in

38 ROADMAP Continued share buyback program to continue post AGM 12 month target to return to profitability in Westcon International De-leverage by improving working capital in Westcon International Consolidate Logicalis in key markets with selective M&A to augment Continue to explore optimum value realisation opportunities INTERNATIONAL Datatec

39 CURRENT TRADING & PROSPECTS Strong Logicalis FY19 expected in all regions Trading recovery underway in Westcon International Improving execution & market share in Weston International Closing the value gap INTERNATIONAL Datatec

40 Technology Distribution Integration & Managed Services Consulting & Research QUESTIONS Datatec 2018

41 DEFINITIONS UNDERLYING EARNINGS Excluding impairments 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, SYNNEX deal-related expenses and the taxation effect on all of the aforementioned. Datatec

42 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 UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2016

DATATEC GROUP UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2016 Technology Distribution Integration & Managed Services Consulting & Research UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2016 AGENDA Results summary, market conditions & operational strategy