DATATEC LIMITED - Audited provisional results for year ended 28 February 2015 declaration of scrip distribution with cash alternative
13 May 2015 8:00
DTC 201505130008A
Audited provisional results for year ended 28 February 2015, declaration of scrip distribution with cash alternative

Datatec Limited: Incorporated in the Republic of South Africa
Registration number 1994/005004/06
Share code JSE and LSE: DTC
ISIN: ZAE000017745 (“Datatec” or the “Group”)


Datatec Limited (“Datatec” or the “Group”, JSE and LSE: DTC), the international information and
communications technology (ICT) group, is today publishing its audited provisional summary consolidated results 
for the financial year ended 28 February 2015 (“FY15”).

  Financial Results
  •    Group revenue up 13.3% to $6.4 billion (FY14: $5.7 billion)                                                
  •    Gross profit at $932.9 million (FY14: $841.4 million)                                                                       
  •    EBITDA up 17.7% to $206.4 million (FY14: $175.3 million)                                                   
  •    Underlying* earnings per share up 17.1% to 41.8 US cents (FY14: 35.7 US cents)                             
  •    Scrip distribution with cash dividend alternative maintained at 17 US cents per share for the full year    
  Group performance                                                    
  •    Strong recovery in Westcon’s performance        
  •    Logicalis improved in the second half of FY15   
  •    Better operating margins across all divisions   

  Current trading and prospects
  •    Continued growth in networking, mobile communications, security and ICT infrastructure managed services    
  •    Dollar strength expected to hinder growth in some markets and increase relative contribution from the US            
  •    The Group continues to focus on improving operational efficiency                                           
 Jens Montanana, Chief Executive of Datatec, commented:

“Our revenue growth continued this year, driven by a strong recovery in sales and market share at Westcon. 
Logicalis delivered an improvement in the second half, leading to profitable growth year-over-year.  We are
also pleased with the improved operating efficiency across all divisions.    

“We have maintained our dividend over the past three years despite volatile earnings and have delivered
long-term sustainable returns to shareholders.

"We expect our diverse operating portfolio to continue to deliver revenue growth, as Logicalis adapts its 
capabilities to address cloud-based infrastructure opportunities and Westcon increases its 
momentum with global vendors."

Datatec is an international ICT solutions and services group operating in more than 60 countries across
North America, Latin America, Europe, Africa, Middle East and Asia Pacific. The Group’s service offering 
spans the technology, integration and consulting sectors of the ICT market.

Datatec operates through three core divisions:
Technology - Westcon: distribution of networking, security, unified communications and data centre products;
Integration - Logicalis: ICT infrastructure solutions and services; and
Consulting Services - Analysys Mason, Mason Advisory and The Via Group: strategic and technical consulting.

“Corporate” encompasses the costs of the Group’s head office entities including Datatec Financial Services,
a new capital/leasing business under development.

The Group’s businesses are managed on a standalone basis, able to respond quickly to technology changes and
focused on collective strategic initiatives based on a shared strategy. 

Datatec’s strategy is to deliver long-term, sustainable and above average returns to shareholders through
portfolio management and the development of its principle subsidiaries in technology solutions and services 
to targeted customers in identified markets.


Group revenues increased 13.3% to $6.4 billion (FY14: $5.7 billion) reflecting a 19.4% increase in Westcon
revenues, partially offset by a 1.1% decline in Logicalis. 

North America generated 32% of Datatec’s revenues (FY14: 27%) and 25% of gross profits (FY14: 23%) mainly
due to a strong performance in Westcon North America.  

  Revenue % contribution by geography                   
                                      FY15    FY14   
  North America                        32%     27%   
  Latin America                        17%     18%   
  Europe                               32%     34%   
  Asia-Pacific                          9%     11%   
  Africa & Middle East (AME)           10%     10%   
                                      100%    100%    

  Gross profit % contribution by geography
                                      FY15    FY14   
  North America                        25%     23%   
  Latin America                        25%     25%   
  Europe                               31%     33%   
  Asia-Pacific                         10%     11%   
  Africa & Middle East (AME)            9%      8%   
                                      100%    100%   

Group gross margins were marginally lower at 14.5% (FY14: 14.8%) due to the increased contribution of
Westcon to overall revenues. Gross profit increased by 10.9% to $932.9 million (FY14: $841.4 million) 
while operating costs grew, as expected by 9.1% to $726.5 million (FY14: $666.1 million). 

EBITDA increased by 17.7% to $206.4 million (FY14: $175.3 million), which includes unrealised foreign
exchange gains of $1.0 million (FY14: $3.4 million loss). 

The Group’s EBITDA margin of 3.2% was up slightly (FY14: 3.1%) due to operating leverage and increased
efficiency across all divisions. Depreciation was $26.3 million (FY14: $26.4 million). 

Amortisation of acquired intangible assets and software was $15.2 million (FY14: $15.1 million) and
amortisation of capitalised development expenditure was $7.2 million (FY14: $6.3 million). Depreciation 
and amortisation includes a favourable impact arising from a revision of the amortisation period of the ERP 
system to terminate two years later than originally estimated. 

Operating profit was up 29.2% to $157.8 million (FY14: $122.1 million). 

The net interest charge decreased to $17.6 million (FY14: $21.6 million) mainly as a result of improved
working capital management that led to reduced levels of average net debt during FY15.  

Profit before tax was $140.2 million (FY14: $101.8 million).

The Group’s reported effective tax rate for FY15 is 36.8% (FY14: 36.8%). This is higher than the South
African rate of 28% due to the profits arising in jurisdictions with higher tax rates, in particular 
North and Latin America. 

Underlying* earnings per share (“UEPS”) were up 17.1% to 41.8 US cents (FY14: 35.7 US cents). Headline
earnings per share (“HEPS”) were 37.0 US cents (FY14: 31.6 US cents). 

The Group generated $186.2 million cash from operations during FY15 (FY14: $32.2 million) and ended the 
year with net debt of $87.1 million (FY14: net debt $86.7 million), taking into account long-term debt 
of  $21.6 million and short-term debt of $43.5 million, included in payables and provisions. The Group 
continues to enjoy comfortable headroom in its working capital facilities.

During FY15 the Group completed the following transactions:

• 30 August 2014 - Westcon acquired the assets of Verecloud, Inc. (“Verecloud”), for $12.0 million
  (including $1.0 million deferred purchase consideration);
• 1 September 2014 - Logicalis acquired a 51% shareholding in ITUMA GmbH (“Ituma”) for $1.4 million;
• 2 January 2015 - Logicalis acquired a 100% shareholding in inforsacom Holding GmbH (“Inforsacom”) 
  for $17.3 million; and
• December 2014 and January 2015 - Logicalis increased its holding in PromonLogicalis Latin America 
  Limited from 60% to 65%.

The fair value of companies acquired during the year was $30.0 million. As a result of the acquisitions,
goodwill and intangible assets increased by $24.4 million and $10.4 million respectively. The revenue 
and EBITDA included from these acquisitions in FY15 was $21.9 million and $0.6 million, respectively. 
Had the acquisition dates been 1 March 2014, revenue attributable to these acquisitions would have 
been approximately $138.8 million. It is not practical to establish the EBITDA that would have been 
contributed by the acquisitions in FY15 if they had been included for the entire year. An assessment 
of the fair value of assets acquired across all acquisitions made by the Group, Inforsacom being the 
largest component, is set out in a table below. 

There is both a put and call option (level 2 financial instruments) for Datatec to purchase all the 
shares held by the management shareholders in Comztek Holdings (Pty) Ltd at a defined strike price. During FY15 
a fair value adjustment of $0.3 million was charged to the statement of comprehensive income and the 
closing balance included in amounts due to vendors is $1.8 million.  This was valued using a 
discounted cash flow valuation.

The Group issued 6.5 million new shares during the year: 4.4 million shares as part of acquisition
activities; 2.0 million shares for the FY15 interim scrip distribution; and 0.1 million shares to 
satisfy exercised share options. 

The Group paid $33.3 million to shareholders during the year: a final capital distribution in 
respect of FY14 of $17.2 million in July 2014 and an interim scrip distribution with cash 
dividend alternative in respect of FY15 in November 2014.  

The total value returned to shareholders in the FY15 interim distribution was $16.1 million of 
which $10.0 million (61.8%) was distributed to shareholders in the form of scrip (new shares) 
and $6.1 million (38.2%) was settled in cash to those shareholders who had elected the cash 
dividend alternative.  

A final scrip distribution with cash dividend alternative for FY15 has been declared as set out 

Losses of $67.8 million (FY14: $48.3 million) arising on translation to presentation currency 
are included in comprehensive income of $17.1 million (FY14: $24.9 million).


  Contribution to Group revenue                   
                                     FY15    FY14   
  Westcon                             75%     72%   
  Logicalis                           24%     27%   
  Consulting Services                  1%      1%   
                                     100%    100%    

  Contribution to Group EBITDA                   
                                     FY15    FY14   
  Westcon                             56%     50%   
  Logicalis                           43%     49%   
  Consulting Services                  1%      1%   
                                     100%    100%    


Westcon accounted for 75% of the Group's revenues (FY14:72%) and 56% of its EBITDA (FY14: 50%).
Westcon is a value added distributor of category-leading unified communications, network 
infrastructure, data centre and security solutions with a global network of specialty resellers. 
The division goes to market under the Comstor and Westcon brands. 

Westcon’s operations are located in more than 60 countries and create unique programmes and provide 
support to accelerate the business of its global partners. Westcon’s portfolio of market-leading 
vendors  includes: Cisco, Avaya, Polycom, Juniper, Check Point, F5, Palo Alto and Blue Coat. 

Revenues increased by 19.4% to $4.9 billion (FY14: $4.1 billion). Most notably revenues improved 
in North America where sales increased 41.9% through a return to efficient execution following 
the resolution of post-ERP confronts in that region.

  Westcon revenue: % geographic split                   
                                     FY15    FY14   
  North America                       34%     29%   
  Latin America                       12%     11%   
  Europe                              32%     35%   
  Asia Pacific                        10%     12%   
  AME                                 12%     13%   
                                     100%    100%   

  Westcon revenue: % by product category                   
                                      FY15    FY14   
  Cisco                                46%     47%   
  Unified Communications               21%     22%   
  Security                             25%     22%   
  Data Centre and Other                 8%      9%   
                                      100%    100%   
Gross margins were 11.2% (FY14: 11.2%) with higher margins across all regions except Europe which 
was impacted by lower profit from maintenance and renewal sales. Gross profit increased by 19.6% 
to $542.2 million (FY14: $453.4 million). 

Operating expenses increased by 15.2% to $417.1 million (FY14: $362.1 million) while operating 
expenses as a proportion of revenue decreased to 8.6% (FY14: 8.9%).

EBITDA was up 37.0% to $125.1 million (FY14: $91.3 million) with increased results in North America, 
Latin America and AME while EBITDA margins were 2.6% (FY14: 2.3%), with increased margins across 
all territories except Europe.   

Operating profit was $100.2 million (FY14: $62.0 million). 

Net working capital days decreased to 27 days (FY14: 35 days) resulting in a decrease of $29.6 
million in net debt to $165.2 million.

Of the $14.8 million capitalised development expenditure in FY15, the majority is attributable to 
the ERP system transition.

In April 2014, Westcon established its Services Solution Practice followed by the transfer of Intact
Integrated Services Limited and Intact Integrated Services GmbH from Consulting Services in July 2014. 
Services include project, support and managed services to the ICT and Cisco channel industry. Growing 
Westcon’s services is a strategic priority for the business.  

In August 2014, Westcon acquired the assets of Verecloud, a developer of an advanced distribution 
platform for cloud and services solutions. The platform is being incorporated into Westcon’s Cloud 
Solution Practice and will help resellers drive significant revenue from cloud-enabled services.  

Westcon also continued globalisation of core vendor relationships, including Palo Alto Networks. 
The expanded partnership opens new markets for the industry’s fastest-growing enterprise security 
platform, permitting resellers to leverage highly integrated global distribution capabilities.  

Westcon’s management remains focused on improving operational efficiency through the global roll-out 
of its ERP system, with implementation in New Zealand, Singapore and Australia during FY15. 
The roll-out is expected to continue in FY16, in conjunction with further operational efficiency measures.

Logicalis accounted for 24% of the Group's revenues (FY14: 27%) and 43% of its EBITDA (FY14: 49%).
Logicalis is an international IT solutions and managed services provider with a breadth of knowledge 
and expertise in IT infrastructure and networking solutions, communications and collaboration, 
data centre, cloud solutions and managed services.

  Logicalis revenue % geographic split                   
                                       FY15    FY14   
  North America                         25%     25%   
  Latin America                         36%     35%   
  Europe                                31%     31%   
  Asia Pacific                          8 %      9%   
                                       100%    100%   
Revenue was $1.5 billion (FY14: $1.6 billion), including $21.9 million of revenue from the 
acquisitions made during the year. Organic revenue was down 3%.  This reduction reflected lower 
product sales (down 4.9% year-on-year) across the main vendor categories, Cisco, IBM and HP, and 
only partially offset by increases in other vendor categories. 

Revenues from total services were up 7.9%, with increases in both professional services and 
annuity service revenues. This change reflects customers’ increasing shift towards, and Logicalis’ 
response to, services-based solutions.

Revenues were sequentially 14.7% higher in the second half driven by higher professional services 
and product revenues (and up 4.6% on the second half of FY14). 

Revenue growth for the year was mixed across the regions with marginal increases in North and 
Latin America offset by Asia-Pacific, which was adversely impacted by difficult trading conditions 
in Australia and a weakening in the macroeconomic environment.  In Europe, the UK results were 
significantly impacted by the loss of a long-term contract with the Welsh Assembly Government. 

The strengthening of the US dollar against the Brazilian Real in particular and continued import
restrictions in Argentina continued to moderate revenue growth expectations.

Gross margins increased to 24.2% (FY14: 23.3%). Overall service margins were down slightly but 
product margins were up on better transaction margins. Gross profit was up 3% to $371.6 million 
(FY14: $360.9 million) and operating expenses increased by 1%. 

EBITDA increased 7.4% to $97.0 million (FY14: $90.3 million), reflecting an improved EBITDA margin 
of 6.3% (FY14: 5.8%). 

Operating profit was up 9.9% to $74.2 million (FY14: $67.5 million), driven primarily by a much 
improved performance in the Southern Cone region of Latin America.

Net working capital days improved, despite an increase in days sales outstanding.  This reflects 
a change in customer mix.  Approximately $35.0 million of cash was deployed in corporate finance 
investment activities. In September 2014, Logicalis acquired a 51% shareholding in Ituma, a 
speciality software developer based in Germany which is focused on Wi-Fi enabled-services such 
as in-location navigation, product and service offerings access, product promotions and analytics.

In January 2015 Logicalis acquired Inforsacom, a German provider of database, storage and 
infrastructure solutions and services with operations across the major economic centres of Germany. 
The acquisition will significantly enhance Logicalis’ scale and capabilities in the German IT 

Logicalis continues to have a contingent liability in respect of a possible tax liability at its
PromonLogicalis subsidiary in Brazil.

The ICT market is adjusting to a transition to cloud-based infrastructure solutions. Logicalis 
continues to adapt its go-to-market model and develop its services to address this change. 
Logicalis UK is going through a reorganisation pursuant to the completion of a major seven-year 

Consulting Services
The Consulting Services division accounted for 1% of Group revenues (FY14: 1%) and 1% of EBITDA 
(FY14: 1%).
The Consulting Services division comprises Analysys Mason, a provider of strategic, trusted advisory, 
modelling and market intelligence services to the telecoms, IT and digital media industries; Mason 
Advisory (“Mason”), an independent and impartial IT consultancy providing related strategic, 
technical and operational advice to the public and private sectors; and The Via Group (“Via”), a 
specialist professional services organisation providing unified communications and integrated 
voice solutions that encompass Microsoft technology.  Intact Integrated Services was transferred 
to Westcon in July 2014.

Despite strong demand from projects originating in Latin America for Analysys Mason, most regions
experienced significant sales pressure resulting in reduced revenues. Mason, following its 
incorporation, performed well, but had a challenging fourth quarter due to sales pressure earlier 
in the year. Via has experienced a modest increase in sales.

Divisional revenues were $55.2 million (FY14: $72.6 million). EBITDA has improved to $3.2 million 
(FY14: $2.1 million) due to the transfer of Intact to Westcon, operating improvements at Via and 
cost saving initiatives. The FY14 comparatives include Intact revenues of $15.4 million and 
EBITDA loss of $1.6 million. From FY15, Intact is included in the Westcon results.

The current sales pipeline indicates that the good demand for Latin American-based projects is 
expected to continue into FY16.

Corporate encompasses the net operating costs of the Datatec head office entities of $19.6 million 
(FY14: $13.2 million), including share-based payments, and net foreign exchange gains of $0.6 million 
(FY14: $4.7 million). Included in Corporate operating costs is expenditure associated with the 
start-up of Datatec Financial Services which is developing financing/leasing solutions for ICT 
customers. Other than the significant movements in foreign exchange, head office costs are higher 
than in FY14 due to additional employee costs and corporate finance expenses. 

There are no material subsequent events to report. On 6 May 2015 Logicalis acquired Trovus, a small 
UK Business Intelligence consultancy, which provides business insight solutions, professional 
services and managed services to large enterprise clients.

The Group remains well positioned to support its vendors and customers through its scale and broad
international coverage. Technology innovation remains high in the sectors in which the Group 
operates as IT infrastructure migrates to cloud-based delivery, often requiring managed services. 
This continues to create demand for networking, security, mobility and unified communications 

The shift to cloud-based solutions is impacting the timing of product revenue recognition as 
infrastructure is delivered as a service. This is also changing competition in some market 
segments. Westcon and Logicalis are capitalising on these trends through continued vendor and 
customer alignment and innovation.

The Board has decided to discontinue specific forward guidance due to, inter alia, the size and
diversification of the business today as well as the volatility of the multiple currencies in 
which the Group operates. 

Based on market conditions, revenue growth will be driven by industry trends, market share expansion, 
exploiting new technology solutions and the continuing increase in services. Datatec expects 
earnings to be positively impacted by the growth momentum at Westcon offset by reorganisation 
in Logicalis UK and continued dollar strength. 

The performance in FY16 to date is in line with the Board’s expectations.

Notice is hereby given that the Board has declared a final distribution for the year ended 28 February 2015,
by way of the issue of fully-paid Datatec ordinary shares of one cent each (“the Scrip Distribution”) payable
to ordinary shareholders (“Shareholders”) recorded in the register of the Company at the close of business on
the Record Date, being Friday, 17 July 2015. 

Shareholders will be entitled, in respect of all or part of their shareholding, to elect to receive a gross
cash dividend of 108 RSA cents per ordinary share in lieu of the Scrip Distribution, which will be paid 
only to those Shareholders who elect to receive the cash dividend, in respect of all or part of their 
shareholding, on or before 12h00 on Friday, 17 July 2015. (“the Cash Dividend”). The Cash Dividend has been 
declared from income reserves. A dividend withholding tax of 15% will be applicable to all shareholders not 
exempt therefrom after deduction of which the net Cash Dividend is 91.8 RSA cents per share. 

The new ordinary shares will, pursuant to the Scrip Distribution, be settled by way of capitalisation of the
Company’s distributable retained profits.

The Company’s total number of issued ordinary shares as at 13 May 2015 is 203 614 644. Datatec’s income tax
reference number is 9999/493/71/2.

1.Terms of the Scrip Distribution
The number of Scrip Distribution shares to which each of the Shareholders will become entitled pursuant to
the Scrip Distribution (to the extent that such Shareholders have not elected to receive the Cash Dividend)
will be determined by reference to such Shareholder’s ordinary shareholding in Datatec (at the close of 
business on the Record Date, being Friday, 17 July 2015) in relation to the ratio that 108 RSA cents 
bears to the volume weighted average price (“VWAP”) of an ordinary Datatec share traded on the JSE during 
the 30-day trading period ending on Thursday, 2 July 2015. Where the application of this ratio gives rise 
to a fraction of an ordinary share, the number of shares will be rounded up to the nearest whole number 
if the fraction is 0.5 or more and rounded down to the nearest whole number if the fraction is less than 

Details of the ratio will be announced on the Stock Exchange News Service (“SENS”) of the JSE in accordance
with the timetable below.

2.Circular and salient dates
A circular providing shareholders with full information on the Scrip Distribution and the Cash Dividend
alternative including a Form of Election to elect to receive the Cash Dividend alternative will be posted 
to Shareholders on or about Friday, 19 June 2015. The salient dates of events thereafter are as follows:

 EVENT                                                                                                  2015   
 Announcement released on SENS in respect of the ratio applicable to the                                       
 Scrip Distribution, based on the 30-day volume weighted average price 
 ending on Thursday, 2 July 2015                                                              Friday, 3 July 
 Announcement published in the press of the ratio applicable to the                                            
 Scrip Distribution as above                                                                  Monday, 6 July  
 Last day to trade in order to be eligible for the Scrip Distribution and the                                  
 Cash Dividend alternative                                                                   Friday, 10 July  
 Ordinary shares trade “ex” the Scrip Distribution and the Cash                                                
 Dividend alternative                                                                        Monday, 13 July  
 Last day to elect to receive the Cash Dividend alternative instead of the                                     
 Scrip Distribution, Forms of Election to reach the Transfer Secretaries                                       
 by 12h00 (11h00 UK time)                                                                    Friday, 17 July  
 Record Date in respect of the Scrip Distribution and the Cash                                                 
 Dividend alternative                                                                        Friday, 17 July  
 Cash Dividend payments made and Scrip Distribution shares issued                                              
 to shareholders on the South African register and Scrip Distribution,                                         
 certificates posted and CSDP/broker accounts credited/updated,                                                
 as applicable                                                                               Monday, 20 July  
 Cash Dividend payments made by BACS (direct credit) to shareholders                                           
 on the Jersey register, Scrip Distribution shares and depositary interests                                    
 issued to shareholders on the Jersey register, CREST accounts credited                                        
 with the new Scrip Distribution shares and depositary interests,                                              
 as applicable                                                                               Monday, 20 July  
 Announcement relating to the results of the Scrip Distribution and                                            
 the Cash Dividend alternative released on SENS                                              Monday, 20 July  
 Announcement relating to the results of the Scrip Distribution and                                            
 the Cash Dividend alternative published in the press                                       Tuesday, 21 July   

All times provided are South African local times. The above dates and times are subject to change. Any
change will be announced on SENS. 

Share certificates may not be dematerialised or rematerialised, nor may transfers between registers take
place, between Monday, 13 July 2015 and Friday, 17 July 2015, both days inclusive.

The provisional summarised consolidated financial statements are prepared in accordance with the framework 
concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), 
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting 
Pronouncements as issued by the Financial Reporting Standards Council, as well as the requirements of the 
Companies Act of South Africa and the JSE Limited’s Listings Requirements applicable for provisional reports.

The summarised consolidated financial statements also contain the minimum requirements of IAS34 - Interim
Financial Reporting. 

The accounting policies are in terms of IFRS and consistent with those applied in the financial statements
for FY14, except for the adoption of various amendments to accounting standards in FY15. 

The Group adopted the following amendments to accounting standards. The adoption of these amendments did not
have a material impact on the Group annual financial statements.

• IAS 32 Financial Instruments: Presentation (effective for accounting periods beginning on or after 
  1 January 2014)
• IAS 39 Financial Instruments: Recognition and Measurement (effective for accounting periods beginning on
  or after 1 January 2014)
The summarised financial information has been correctly extracted from the underlying audited consolidated
financial statements. The preparation of these summarised financial statements for FY15 was supervised by the
Chief Financial Officer, Mr Jurgens Myburgh.

The consolidated financial statements from which the summarised consolidated financial statements have been 
extracted have been audited by the Company’s auditors, Deloitte & Touche. The consolidated financial statements 
and the auditor’s unmodified report on the consolidated and separate financial statements as well as the 
auditor’s unmodified report on the summarised consolidated financial statements are available for inspection 
at the Company’s registered office. 
The auditor’s report does not necessarily report on all of the information contained in this announcement / 
financial results.  Shareholders are therefore advised that in order to obtain a full understanding of the 
nature of the auditor’s engagement they should obtain a copy of that report together with the accompanying 
financial information from the issuer’s registered office.

This announcement 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:
(i)  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; 
(ii) 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; 
(iii)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 
(iv) 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. 

On behalf of the Board:
SJ Davidson            JP Montanana                          PJ Myburgh
Chairman               Chief Executive Officer               Chief Financial Officer
13 May 2015

*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 and the taxation effect on 
all of the aforementioned

Summarised consolidated statement of comprehensive income 
for the year ended 28 February 2015
  US$’000                                                                         Audited              Audited   
                                                                               Year ended           Year ended   
                                                                            February 2015        February 2014   
  Revenue                                                                       6 443 536            5 688 054   
  Existing operations                                                           6 421 646            5 464 474   
  Acquisitions                                                                     21 890              223 580   
  Cost of sales                                                                (5 510 605)          (4 846 618)  
  Gross profit                                                                    932 931              841 436   
  Operating costs                                                                (716 454)            (660 624)  
  Share-based payments                                                            (10 084)              (5 547)  
  Operating profit before interest, tax, depreciation and 
  amortisation (“EBITDA”)                                                         206 393              175 265   
  Depreciation                                                                    (26 256)             (26 360)  
  Amortisation of capitalised software development expenditure                     (7 216)              (6 309)  
  Amortisation of acquired intangible assets and software                         (15 163)             (15 066)  
  Intangible impairment                                                                 -               (5 473)  
  Operating profit                                                                157 758              122 057   
  Interest income                                                                   4 324                3 580   
  Finance costs                                                                   (21 930)             (25 168)  
  Share of equity-accounted investment earnings                                       450                  441   
  Acquisition-related fair value adjustments                                         (317)               2 400   
  Fair value movements on put option liabilities                                     (317)               2 421   
  Fair value adjustment on deferred purchase consideration                              -                  (21)  
  Other income                                                                         14                  264   
  Loss on disposal of investments and subsidiary company                             (137)              (1 778)  
  Profit before taxation                                                          140 162              101 796   
  Taxation                                                                        (51 534)             (37 496)  
  Profit for the year                                                              88 628               64 300   
  Other comprehensive income                                                                                     
  Items that may be reclassified subsequently to profit and loss                                                 
  Exchange differences arising on translation to 
  presentation currency                                                           (67 757)             (48 271)  
  Translation difference on equity loans                                           (5 279)              12 700   
  Tax effect of equity loans translation                                            1 480               (3 301)  
  Transfers and other items                                                            41                 (566)  
  Total comprehensive income for the year                                          17 113               24 862   
  Profit attributable to:                                                                                        
  Owners of the parent                                                             73 772               55 780   
  Non-controlling interests                                                        14 856                8 520   
                                                                                   88 628               64 300   
  Total comprehensive income attributable to:                                                                    
  Owners of the parent                                                             11 014               22 882   
  Non-controlling interests                                                         6 099                1 980   
                                                                                   17 113               24 862   
  Number of shares issued (millions)                                                                             
  Issued                                                                              204                  197   
  Weighted average                                                                    199                  197   
  Diluted weighted average                                                            200                  198   
  Earnings per share (“EPS”) (US cents)                                                                          
  Basic                                                                              37.1                 28.4   
  Diluted basic                                                                      36.9                 28.2   
  SALIENT FINANCIAL FEATURES                                                                                     
  Headline earnings                                                                73 674               62 083   
  Headline earnings per share (US cents)                                                                         
  Headline                                                                           37.0                 31.6   
  Diluted headline                                                                   36.9                 31.3   
  Underlying earnings                                                              83 131               70 165   
  Underlying earnings per share (US cents)                                                                       
  Underlying                                                                         41.8                 35.7   
  Diluted underlying                                                                 41.6                 35.4   
  Net asset value per share (US cents)                                              427.8                442.1   
  KEY RATIOS                                                                                                     
  Gross margin (%)                                                                   14.5                 14.8   
  EBITDA (%)                                                                          3.2                  3.1   
  Effective tax rate (%)                                                             36.8                 36.8   
  Normalised effective tax rate (%)                                                  36.6                 37.1   
  Exchange rates                                                                                                 
  Average Rand/US$ exchange rate                                                     11.0                 10.1   
  Closing Rand/US$ exchange rate                                                     11.7                 10.7   

Summarised consolidated statement of financial position
as at 28 February 2015
  US$’000                                                                     Audited              Audited   
                                                                           Year ended           Year ended   
                                                                        February 2015        February 2014   
  Non-current assets                                                          701 809              673 650   
  Property, plant and equipment                                                73 328               65 282   
  Goodwill                                                                    450 884              438 198   
  Capitalised software development expenditure                                 49 573               45 099   
  Acquired intangible assets and software                                      45 854               53 664   
  Investments                                                                   6 342                7 054   
  Deferred tax assets                                                          54 555               53 909   
  Other receivables                                                            21 273               10 444   
  Current assets                                                            2 572 773            2 318 374   
  Inventories                                                                 442 612              432 594   
  Trade receivables                                                         1 532 820            1 312 771   
  Current tax asset                                                            15 626               14 197   
  Prepaid expenses and other receivables                                      215 585              180 144   
  Cash and cash equivalents                                                   366 130              378 668   
  Total assets                                                              3 274 582            2 992 024   
  EQUITY AND LIABILITIES                                                                                     
  Equity attributable to equity holders of the parent                         870 850              871 617   
  Share capital and premium                                                   126 886              122 936   
  Non-distributable reserves                                                   50 179               49 697   
  Foreign currency translation reserve                                       (105 307)             (40 989)  
  Share-based payment reserve                                                     739                 (351)  
  Distributable reserves                                                      798 353              740 324   
  Non-controlling interest                                                     41 599               52 868   
  Total equity                                                                912 449              924 485   
  Non-current liabilities                                                     103 710               94 131   
  Long-term liabilities                                                        21 555               17 359   
  Liability for share-based payments                                            9 848                7 501   
  Amounts owing to vendors                                                      1 842                2 447   
  Deferred tax liabilities                                                     69 833               66 052   
  Other liabilities                                                               632                  772   
  Current liabilities                                                       2 258 423            1 973 408   
  Trade and other payables                                                  1 795 783            1 490 238   
  Short-term interest-bearing liabilities                                      43 468               27 611   
  Provisions                                                                   13 979               13 416   
  Amounts owing to vendors                                                      2 750                7 497   
  Current tax liabilities                                                      14 212               14 208   
  Bank overdrafts                                                             388 231              420 438   
  Total equity and liabilities                                              3 274 582            2 992 024   
  Capital expenditure incurred in the current year                   
  (including capitalised development expenditure)                              51 104               43 528   
  Capital commitments at the end of the year                                   33 909               20 422   
  Lease commitments at the end of the year                                    153 258              129 966   
  Payable within one year                                                      34 348               32 319   
  Payable after one year                                                      118 910               97 647   

Summarised consolidated statement of cash flows
for the year ended 28 February 2015
  US$’000                                                                     Audited              Audited   
                                                                           Year ended           Year ended   
                                                                        February 2015        February 2014   
  Operating profit before working capital changes                             215 346              183 437   
  Working capital changes                                                     (29 147)            (151 210)  
  Increase in inventories                                                     (32 038)             (82 917)  
  Increase in receivables                                                    (324 540)            (150 710)  
  Increase in payables                                                        327 431               82 417   
  Cash generated from operations                                              186 199               32 227   
  Net finance costs paid                                                      (17 606)             (21 588)  
  Taxation paid                                                               (53 193)             (45 073)  
  Net cash inflows/(outflows) from operating activities                       115 400              (34 434)  
  Cash outflows for acquisitions                                               (1 979)             (16 544)  
  Net cash outflows from other investing activities                           (49 498)             (42 583)  
  Net cash inflows from other financing activities                             13 500               19 563   
  Capital distributions and dividends                                         (49 525)             (35 921)  
  Net increase/(decrease) in cash and cash equivalents                         27 898             (109 919)  
  Cash and cash equivalents at the beginning of the year                      (41 770)              73 316   
  Translation differences on opening cash position                             (8 229)              (5 167)  
  Cash and cash equivalents at the end of the year*                           (22 101)             (41 770)  
*Comprises cash resources, net of bank overdrafts and trade finance advances.

Summarised consolidated statement of changes in total equity
for the year ended 28 February 2015
  US$’000                                                                     Audited              Audited   
                                                                           Year ended           Year ended   
                                                                        February 2015        February 2014   
  Balance at the beginning of the year                                        924 485              917 011   
  Total comprehensive income                                                   17 113               24 862   
  New share issues                                                             31 076               22 546   
  Capital distributions                                                       (17 226)             (31 594)  
  Dividend                                                                    (16 060)                   -   
  Equity-settled deferred purchase consideration                                    -               (3 333)  
  Share-based payments                                                          1 855                 (109)  
  Derecognition of put option liability                                             -                  131   
  Recognition of put option liability                                               -               (1 864)  
  Other                                                                             -                 (201)  
  Acquisitions                                                                (10 623)              (2 009)  
  Disposals                                                                      (803)                (265)  
  Non-controlling interest                                                    (17 368)                (690)  
  Balance at the end of the year                                              912 449              924 485   

Determination of headline and underlying earnings
for the year ended 28 February 2015
  US$’000                                                                     Audited              Audited   
                                                                           Year ended           Year ended   
                                                                        February 2015        February 2014   
  Profit attributable to the equity holders of the parent                      73 772               55 780   
  Headline earnings adjustments                                                   (98)               6 303   
  Intangible impairment                                                             -                5 473   
  (Profit)/loss on disposal of investment                                        (106)               1 844   
  Loss on disposal of property, plant and equipment                                36                    -   
  Tax effect                                                                      (18)              (1 013)  
  Non-controlling interest                                                        (10)                  (1)  
  Headline earnings                                                            73 674               62 083   
  DETERMINATION OF UNDERLYING EARNINGS                                                                       
  Underlying earnings adjustments                                              13 009               14 411   
  Unrealised foreign exchange (gains)/losses                                   (1 012)               3 443   
  Acquisition-related fair value adjustments                                      317               (2 400)  
  Amortisation of acquired intangible assets                                   13 704               13 368   
  Tax effect                                                                   (3 546)              (6 406)  
  Non-controlling interest                                                         (6)                  77   
  Underlying earnings                                                          83 131               70 165   

Summarised Segmental analysis
for the year ended 28 February 2015
  US$’000                                                                     Audited              Audited   
                                                                           Year ended           Year ended   
                                                                        February 2015        February 2014   
  Westcon                                                                   4 854 507            4 065 112   
  Logicalis                                                                 1 533 777            1 550 322   
  Consulting Services                                                          55 242               72 620   
  Corporate                                                                        10                    -   
  Revenue                                                                   6 443 536            5 688 054   
  Westcon                                                                     125 141               91 301   
  Logicalis                                                                    97 039               90 318   
  Consulting Services                                                           3 158                2 094      
  Corporate                                                                   (18 945)              (8 448)  
  EBITDA                                                                      206 393              175 265   
  Operating profit                                                                                           
  Westcon                                                                     100 207               61 974   
  Logicalis                                                                    74 165               67 523   
  Consulting Services                                                           2 362                1 041   
  Corporate                                                                   (18 976)              (8 481)  
  Operating profit                                                            157 758              122 057   
  Total assets                                                                                               
  Westcon                                                                   2 289 764            2 036 245   
  Logicalis                                                                   920 295              886 131   
  Consulting Services                                                          39 694               53 258      
  Corporate                                                                    24 829               16 390   
  Total assets                                                              3 274 582            2 992 024   
  Total liabilities                                                                                          
  Westcon                                                                  (1 690 252)          (1 443 233)  
  Logicalis                                                                  (641 932)            (585 037)  
  Consulting Services                                                         (12 702)             (22 167)     
  Corporate                                                                   (17 247)             (17 102)  
  Total liabilities                                                        (2 362 133)          (2 067 539)  
Intact’s results are included in Consulting Services’ results in FY14; but in Westcon’s results in FY15.
The following table sets out the assessment of the fair value of assets acquired across all acquisitions
made by the Group; Inforsacom is the largest component of this. 

  Acquisitions made in FY15                                   
  Assets acquired                                   US$’000   
  Non-current assets                                    677   
  Current assets                                     49 880   
  Non-current liabilities                            (5 022)  
  Current liabilities                               (50 273)  
  Net liabilities acquired                           (4 738)  
  Intangible assets                                  10 418   
  Goodwill                                           24 378   
  Non-controlling interest                              (77)  
  Fair value of acquisitions                         29 981   
  Purchase consideration                                      
  Issue of Datatec shares                            17 942   
  Amounts due to vendor                               1 000   
  Cash                                               11 039   
  Total consideration                                29 981   
  Cash outflows for acquisitions                              
  Cash and cash equivalents acquired                  9 060   
  Cash consideration paid                           (11 039)  
  Net cash outflow for acquisitions                  (1 979)  
  Jens Montanana - Chief Executive Officer                           +44 (0) 1753 797118   
  Jurgens Myburgh - Chief Financial Officer                          +27 (0) 11 233 3301   
  Wilna de Villiers - Group Investor Relations Manager               +27 (0) 11 233 1013   
  Jefferies International Limited - Nominated Advisor and Broker                            
  Nick Adams/Alex Collins                                            +44 (0) 20 7029 8000   
  finnCap - Broker                                                                          
  Instinctif Partners                                                                       
  Adrian Duffield/Chantal Woolcock (UK)                              +44 (0) 20 7457 2020   
  Frederic Cornet (SA)                                               +27 (0) 11 447 3030                                                                      
SJ Davidson#^ (Chairman), JP Montanana^ (CEO), PJ Myburgh (CFO), RP Evans^, 
O Ighodaro#*, JF McCartney#+, LW Nkuhlu#, CS Seabrooke#, NJ Temple#^
#Non-executive ^British +American *Nigerian

Datatec Limited  (

Rand Merchant Bank (a division of FirstRand Bank Limited), 
1 Merchant Place, Corner Fredman Drive
and Rivonia Road, Sandton

13 May 2015
Date: 13/05/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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