DATATEC LIMITED - Business update
21 July 2020 8:00
Business update

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


Introduction and background
Datatec, the international Information and Communications Technology (ICT) group, is today
publishing a business update for the four months ended 30 June 2020 (“4M FY21”).

When Datatec issued its results for the financial year ended 28 February 2020 (“FY20”) on 27 May
2020, the Group indicated that trading subsequent to FY20 had remained steady and that Westcon
International revenues and order intake for the first quarter of FY21 (“Q1 FY21”) were similar to the
same period in the prior financial year (“Q1 FY20”). For Logicalis, order intake for Q1 FY21 was
similar to Q1 FY20, with revenues for Q1 FY21 slightly lower than Q1 FY20. The Group also indicated
that cash collections from customers during the first few months of FY21 have remained in line with
historic norms.

4M FY21 update (March to June 2020):
Group revenues for 4M FY21 were slightly lower than revenues for the four months ended 30 June
2019 (“4M FY20”). Operating costs were much lower than in 4M FY20, resulting in meaningful
operating leverage and improved EBITDA for the Group.

Westcon International revenues for 4M FY21 were slightly higher compared to 4M FY20 with
improved EBITDA. Demand was strong for networked cloud computing, remote access solutions for
home working and virtual office environments, unified communications and enhanced network

Logicalis revenues for 4M FY21 were modestly lower compared to 4M FY20, but with much
improved EBITDA, driven mainly by Europe and the US, while Latin America and Asia Pacific
continued to be impacted by currency translation. Services revenues were strong.

Given the uncertain operating environment, the Group continues with its policy of not issuing any
forward-looking guidance. Our focus remains on optimising our business in the current environment,
which includes cost and liquidity management.

The financial information on which this statement is based has not been reviewed or reported on by
the Group’s external auditors.

21 July 2020

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 21-07-2020 08:00:00
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