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" or "the Group")

TRADING STATEMENT

Datatec, the international Information and Communications Technology (ICT) company, is
publishing a trading statement for the financial year ended 28 February 2021 ("FY21"). The
comparative year ended 29 February 2020 is referred to as FY20 throughout this
announcement.

The resilient trading performance that the Group experienced during the first half of FY21
continued during the second half. Despite the challenging economic environment resulting
from the Covid-19 pandemic, Datatec achieved a strong operational performance in FY21,
benefiting from the strength in the technology sector. All of the Group’s divisions delivered
strong results and operating cash flows and the Group ended FY21 with enhanced liquidity
and significantly reduced net debt. During the year, the Group incurred one-time Covid-19
and fundamental restructuring costs of $22 million, which are excluded from underlying*
earnings.

The FY20 results included a tax credit in Logicalis Brazil of approximately $14 million relating
to certain overpaid indirect taxes and interest income of approximately $7m in relation to
those overpaid taxes.

In terms of paragraph 3.4(b)(i) 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 will
differ by at least 20% from the previous corresponding reporting period (FY20).

The preparation of the FY21 results has reached the stage where the Group has such a
reasonable degree of certainty and Datatec now expects that, for FY21, underlying* earnings
per share will be more than 20% higher than that reported for FY20. Headline earnings per
share and earnings per share will be more than 20% lower than that reported for FY20:

-      Underlying* earnings per share is expected to be between 13.4 and 13.8 US cents
       (FY20: 9.9 US cents), being 3.5 to 3.9 US cents (35% to 39%) higher than FY20;

-      Headline earnings per share is expected to be between 1.6 and 2.0 US cents (FY20:
       5.9 US cents) being 3.9 to 4.3 US cents (66% to 73%) lower than FY20;

-      Earnings per share is expected to be between 1.2 and 1.6 US cents (FY20: 6.8 US
       cents) being 5.2 to 5.6 US cents (77% to 82%) lower than FY20.

The financial information on which this trading statement is based has not been reviewed nor
reported on by the Group’s external auditors.

The Company intends to release its FY21 results on SENS on or about 25 May 2021.

* underlying earnings per share excludes impairments 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, restructuring costs relating to fundamental
reorganisations and the taxation effect of all of the aforementioned.

Johannesburg
13 May 2021

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 13-05-2021 08:00:00
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