DATATEC LIMITED - Trading statement
7 October 2020 8:00
Trading statement

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


Datatec Limited (JSE: DTC, “Datatec” or “the Group” or “the Company”), the international Information and Communications
Technology (ICT) company is publishing a trading statement for the six months ended 31 August 20 20 (“H1 FY21”). The
comparative six months ended 31 August 2019 is referred to as “H1 FY20” throughout this announcement.

Datatec achieved a very resilient operational performance in H1 FY21 despite the challenging economic environment
resulting from the Covid-19 pandemic. All of the Group’s divisions delivered strong results and operating cash flows. The
Group ended H1 FY21 with enhanced liquidity.

Group revenues for H1 FY21 were $2.031 billion (H1 FY20: $2.056 billion) and Adjusted** EBITDA was $66.7 million (H1
FY20: $70.0 million)

Westcon International revenues increased by 4% to $1.3 billion (H1 FY20: $1.25 billion) on strong demand for networked
cloud computing, remote access solutions for home working and virtual office environments, unified communications and
enhanced network security. Operating costs were lower than in H1 FY20, resulting in Adjusted** EBITDA of $23.0 million
(H1 FY20: $19.1 million).

Logicalis revenues reduced by 10% to $700 million (H1 FY20: $7 80 million). Revenues increased in Europe but reduced
elsewhere with the Latin America region being impacted by adverse currency translation. Operating costs were lower than
in the prior year. Adjusted** EBITDA was $45.2m (H1 FY20: $56.0m).

The results for H1 FY20 included a tax credit in Logicalis Brazil (“The Tax Credit”) of approximately US$ 14 million relating
to certain overpaid indirect taxes, as well as interest income of approximately $ 7 million in regard to those overpaid taxes.

Analysys Mason revenue (including acquisitions) grew to $31.8 million (H1 FY20: $27.4 million), Adjusted** EBITDA was
$5.7 million (H1 FY20: $4.8 million).

In terms of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they
are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next w ill
differ by at least 20% from the previous corresponding reporting period.

Datatec now expects that for H1 FY21 all earnings per share metrics will be lower than the reported earnings for H1 FY20
because of the effect of the Tax Credit in H1 FY20:

    •    Underlying* earnings per share is expected to be between 3.5 and 4.0 US cents (H1 FY20: 5.3 US cents), being
         1.3 to 1.8 US cents (24% to 34%) lower than H1 FY20.
    •    Headline earnings per share is expected to be between 1.5 and 1.9 US cents (H1 FY20: 2.3 US cents) being
         0.4 to 0.8 US cents (17% to 35%) lower than H1 FY20.
    •    Earnings per share is expected to be between 1.5 and 1.9 US cents (H1 FY20: 2.9 US cents) being 1.0 to 1.4
         US cents (34% to 48%) lower than H1 FY20.

Forecast information
The estimated financial information contained in this trading statement has not been reviewed nor reported on by the
Group’s external auditors.

The Company expects to release its interim results for H1 FY21 on or about 22 October 2020.

* underlying earnings per share excludes impairments of goodwill and intangible assets, profit or loss on sale of investments
and assets, amortisation of acquired intangib le assets, unrealised foreign exchange movements, acquisition -related
adjustments, fair value movements on acquisition-related financial instruments, restructuring costs relating to fundamental
reorganisations and the taxation effect of all of the aforementioned.

** adjusted EBITDA excludes restructuring costs which have arisen as a result of Covid-19. In H1 FY20 there was no
difference b etween EBITDA and adjusted EBITDA b ecause there were no restructuring costs.

7 October 2020

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 07-10-2020 08:00:00
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