DATATEC LIMITED - Interim Management Statement and Trading Statement
15 January 2014 9:00
DTC 201401150008A
Interim Management Statement and Trading Statement

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec" or "the Company")

Interim Management Statement and Trading Statement

Datatec Limited, ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and
Communications Technology (ICT) group, is today publishing an Interim Management Statement
covering the period from 1 September 2013 to 31 December 2013 ("the Period") and Trading
Statement for the financial year ending 28 February 2014.

Group revenues for the financial year are still expected to be in the range $5.6 billion to $5.8 billion
(2013: $5.25 billion). However, the Board expects the Group’s profitability to be lower than
previously forecast as a result of softer trading in Westcon, the impact of the Westcon ERP transition
in North America and a non-cash provision of up to $20 million relating to the recoverability of certain
assets in Westcon North America. This provision could reduce the Group’s current year’s profit after
tax** by up to $13 million and earnings per share by up to 7 US cents.

Consequently, the Board expects earnings per share (HEPS, EPS and underlying** earnings per
share) could be below the previously published forecasts*** by at least 20%. An estimate of full
year earnings will be provided in the pre-close year end statement in March.

The Group expects to maintain its distribution to shareholders, via a final capital reduction out of
contributed tax capital in lieu of a dividend, at 9 US cents (2013: 9 US cents), making a distribution
of approximately 17 US cents per share in total for the year ending 28 February 2014, (2013: 17 US

Westcon has continued to be impacted by the ERP transition in North America and particularly in high
volume transaction business as well as softer trading in some markets that have seen weaker
currencies versus the dollar.

Trading in Logicalis has remained robust during the Period in an environment which still presents
challenges in certain markets. Analysys Mason has again been the strongest performer in the
Consulting Services division.

Separately today, Datatec has announced two Board changes. Rob Evans, the Group’s Chief Financial
Officer, will become Group Operations Director with effect from 1 June 2014. The addition of this new
Board role reflects the growing scale and complexity of the Group’s operations. Jurgens Myburgh,
who will join the Group on 1 May 2014 as Chief Financial Officer designate, will succeed Rob on 1
June 2014.

Jens Montanana, Chief Executive Officer said:

"Notwithstanding the disappointing performance in Westcon US operations, we are
confident that the issues are being addressed and our recent moves to strengthen
Westcon’s leadership team should quickly improve operating execution. The business
remains well positioned to continue to trade successfully and regain momentum.

“The performance of Logicalis and Consulting Services across all regions remains solid.”

Full year results and pre close statement
The Group expects to release its full year results for the financial year ending 28 February 2014 on or
around Wednesday, 14 May 2014 and a further update will be provided in the March pre-close year
end statement.
The financial information on which this Interim Management Statement and Trading Statement is
based has not been reviewed and reported on by Datatec's external auditors.

* Underlying earnings per share excludes goodwill and intangibles impairment, amortisation of acquired
intangible assets, profit or loss on sale of assets and businesses, fair value movements on acquisition related
financial instruments and unrealised foreign exchange movements.

** Forecasts for profit after tax, earnings per share and headline earnings per share do not take into account any
fair value gains or losses on acquisition related financial instruments (including put option liabilities), which are
required under IFRS.

*** On 16 October 2013 the Group published a revised forecast for the financial year ending 28 February 2014
in light of Weston’s underperformance and the effect of continued disruption caused by the ERP system
transition as follows:
-          revenues of between $5,6 billion and $5,8 billion (previous forecast of between $5,6 billion and $5,9
           billion, FY13: $5,25 billion);
-          profit after tax** of approximately $88 million (previous forecast $102 million, FY13: $85 million);
-          underlying* earnings per share approximately 43 US cents, the same as the last financial year (previous
           forecast 50 US cents, FY13: 43,1 US cents);
-          earnings** per share of approximately 38 US cents (previous forecast 46 US cents, FY13: 40,8 US
           cents); and
-          headline** earnings per share of approximately 40 US cents (previous forecast 46 US cents, FY13: 40,8
           US cents).


Datatec Limited (
Jens Montanana, Chief Executive Officer                                                 +44 (0) 1753 797118
Rob Evans – Chief Financial Officer                                                    +44 (0) 207 395 9012
Wilna de Villiers – Group Marketing Manager                                             +27 (0) 11 233 1013

Jefferies International Limited – Nominated Advisor and Broker
Nick Adams/Alex Collins                                                                +44 (0) 20 7029 8000

finnCap – Broker
Tom Jenkins/Henrik Persson                                                             +44 (0) 20 7220 0500

College Hill
Adrian Duffield/Rozi Morris (UK)                                                       +44 (0) 20 7457 2020
Frederic Cornet/ Bianca Gradus-Samson (SA)                                              +27 (0) 11 447 3030

15 January 2014

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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