DATATEC LIMITED - Interim management statement
20 July 2016 8:00
DTC 201607200010A
Interim management statement

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

Interim Management Statement
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and
Communications Technology (ICT) group, is today publishing an Interim Management Statement
(IMS) covering the period from 1 March 2016 to 30 June 2016 ("the Reporting Period").

The Group has had a sound trading start to the year, with improved gross margins, in a tough global
macro environment marked by continuing volatility in many markets.

Group revenues were $1.97 billion, a reduction of 11% against revenues of $2.22 billion for the four
months to 30 June 2015 ("the Comparable Period"). This reflects a much stronger US Dollar in this
Reporting Period and the exceptionally strong revenue growth of 18% in the Comparable Period.

Gross margins were 13.8%, up from 12.8% in the Comparable Period.

Jens Montanana, Chief Executive Officer, said:

“The improvement in our gross margins is encouraging in a period where revenues have
been comparatively softer, as the much stronger US Dollar continued to impact emerging

“We are committed and focussed on completing the restructuring initiatives within
Westcon which will enhance our operational performance, including the new ERP system
roll-out and Business Process Outsourcing transformation.”

WestconGroup (“Westcon”) revenues declined by 13% (11% in constant currency*), primarily as a
result of previously very strong revenue growth in the Comparable Period, particularly in the Comstor
business. Gross margins improved to 10.6% from 10.0% in the Comparable Period.

North American revenues were softer due to lower Cisco sales in the Comstor division’s federal
business unit. The Asia-Pacific region had a solid performance in Asia, offset by a weaker
performance in Australia. Germany was the best performing market within EMEA while trading in the
Middle East and Africa was softer than in the Comparable Period. Trading conditions in Latin America
have started to improve.

Both the Business Process Outsourcing (“BPO”) transition and further ERP implementations are
progressing according to plan and will deliver future cost savings and improvements in operational

Foreign exchange losses in Angola have reduced markedly to $0.4 million, compared to $7.8 million in
the Comparable Period.

Logicalis showed an improvement of 1.1% in gross profit contribution, despite a slight decline in
revenues of 5.6% (flat in constant currency* terms). Gross margins expanded to 22.8% from 21.3%
in the Comparable Period.

Latin America revenues were lower than the Comparable Period, due to both the much stronger US
Dollar and market softness in Brazil. Encouragingly, a strong recovery in new business took place in
Brazil, resulting in a growing order book.

North American revenues were slightly lower. However, a large low-margin product transaction in the
Comparable Period resulted in significantly higher gross margins in the Reporting Period.

In Europe, Germany and Spain continue to perform well, while restructuring of the UK operations is
expected to be completed during this financial year.

Asia-Pacific delivered a much improved performance, which included the contribution from Thomas
Duryea which was acquired on 1 December 2015.

Logicalis acquired Lantares, a Spanish IBM Cognos Partner and professional services provider
specialising in Business Intelligence and Data Analytics, on 19 May 2016.

Interim results and reporting
The Group expects to release its results for the six months ending 31 August 2016 on Wednesday 19
October 2016.

The financial information on which this statement is based has not been reviewed and reported on by
Datatec’s auditors.

*The pro forma constant currency information, which is the responsibility of the Datatec directors,
presents the Group’s revenue for the Reporting Period had it been translated at the average foreign
currency exchange rates of the Comparable Period. This information is for illustrative purposes only
and because of its nature, may not fairly present the Group’s revenues. The pro forma constant
currency information has not been reviewed by Datatec Limited’s auditors. To determine the revenues
in constant currency terms, the Reporting Period’s monthly revenues in local currency have been
converted to US Dollar at the average monthly exchange rates prevailing over the Comparable Period
The calculation has been prepared for each material currency of the Group, being the British Pound,
Euro, Brazilian Real, Australian Dollar, Canadian Dollar, Singapore Dollar, Mexican Peso and South
African Rand.



Datatec Limited (
Jens Montanana – Chief Executive Officer                         +44 (0) 1753 797 118
Ivan Dittrich – Chief Financial Officer                           +27 (0) 11 233 3301
Wilna de Villiers – 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
Stuart Andrews                                                   +44 (0) 20 7220 0500

Instinctif Partners
Adrian Duffield/Chantal Woolcock (UK)                            +44 (0) 20 7457 2020
Frederic Cornet/Pietman Roos (SA)                                 +27 (0) 11 447 3030

20 July 2016 
RAND MERCHANT BANK (A division of FirstRand Bank Limited) 

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