Datatec Limited · JSE:DTC
Datatec — Investor Presentation (January 2023)
25 slides from Datatec's investor presentation, January 2023
Slide 1: Datatec Investor Presentation: Westcon International
Datatec Investor Presentation Westcon International January 2023 www.westconcomstor.com
Slide 2: What is Information Technology Distribution?
What is Information Technology Distribution? Vendor Distributor Partners End user We buy products We sell these products We help our customer The end user of the and services from and services as partners anticipate technology products category-leading solutions to our and maximise sales are typical
Slide 3: Distribution route to market
Distribution route to market The 2-Tier distribution model is the principal route to market for Cyber Security and Networking solutions vendors. Vendor Distributor Direct 5% 1 Tier 20% 2 Tier 75% 9% 6% 33% 52% Systems Other MSP Resellers integrator End user Note: Direct, T1, and T2 reflects EMEA and
Slide 4: Goals and strategic foundations FY'23-FY'27
Goals and strategic foundations FY’23-FY’27 Westcon International has embarked on an aggressive 5-year growth plan to cement its position as leader in the market place Goals GM-to-EBITDA ratio Conversion 35% Recurring Revenues 90% of Transactions >65% of Gross Sales “Digitally enabled” Strategic Fou
Slide 5: Evolution of Westcon International
Evolution of Westcon International Net Revenue ($bn) Westcon Launch of International today PartnerCentral and new 2022-23 2.3 2.5 2.5 2.6 2.9 1.6 marketplace model Adjusted EBITDA ($m)1 New leadership team established 2018 79 65 55 24 40 50+ 3600 Synnex acquires countries with people 2017 a physical
Slide 6: Financial performance
Financial performance Net Revenue ($m) Total YoY Growth (%) (6) 3 5 14 1 (6) 1 8 12 11 16 8% CAGR 1,614 1,499 1,391 1,338 1,348 1,220 1,253 1,238 1,169 1,207 1,148 H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 Adjusted EBITDA ($m) Margin (%) (0.8) (2.2) 1.3
Slide 7: Financial performance: Working Capital
Financial performance Working Capital ($m) 379 240 266 226 199 184 943 173 202 185 175 769 764 799 751 755 716 714 695 719 Inventory 300 262 292 254 221 243 200 208 210 211 Accounts Receivable Net Working Capital 0 Accounts Payable 589 654 670 717 709 696 714 778 815 1,111 FY18 FY19 FY19 FY20 FY20 F
Slide 8: International market coverage
International market coverage 26% 13% 23% FY19 64% 61% 13% H1 FY23 Advanced Logistics Centre Revenue by Region Warehouse Office APAC MEA Europe Local Presence Westcon-Comstor
Slide 9: Technology segments
Technology segments 12% Successfully expanding the portfolio with high- 17% growth, cyber security and cloud-based enterprise 31% networking vendors 42% 21% FY19 24% FY20 FY21 FY22 FY23 28% H1 FY23 25% ( planned / 2nd half ) Revenue by technology Networking Security Unified Cloud Infrastructure Comm
Slide 10: Strong partnerships with industry-leading vendors
Strong partnerships with industry-leading vendors Westcon International’s world-class portfolio of global and local, established and emerging vendors Mutually strategic relationships, Foundation vendors executive engagement at a global and regional level with international coverage Strong regional r
Slide 11: Customer revenue profile
Customer revenue profile Revenue* by customer Revenue* by customer What makes ranking type the difference? 16% 22% • Balanced customer mix and strong retention • Focus on MSPs: shift to XaaS means that VARs are H1 FY23 9% H1 FY23 53% becoming MSPs. 55% • Westcon-Comstor 31% propositions and solution
Slide 12: Extensive network of customer partners
Extensive network of customer partners Global system integrators & service Global accounts providers. 21 of the world’s largest IT organisations The largest regional SI and tier-2 service Regional SI/SP providers Corporate resellers and local SI Enterprise resellers organisations 12,000+ unique cust
Slide 13: Changing market dynamics
Changing market dynamics • Solutions are increasingly disaggregated delivered through devices and software, subscriptions and require greater orchestration in design, delivery and deployment. Net Revenue Profile • Subscription renewals, re-signing and refreshing are data-dependent and time-bound sal
Slide 14: Channel Transformation
Channel Transformation LAER has become the industry model and is recognised as Traditionally the new GTM Lifecycle model for subscription offers High % HW sales High inventory Land Adopt Expand Renew MDF – New Product Focused CAPEX transactions Rebates on new sales Reactive Selling A Revenue Lifecyc
Slide 15: Technology providers require digitally enabled platforms
Technology providers require digitally enabled platforms What makes Westcon International strives to be a leader in the use of digital technologies, data analytics and insights in order to deliver superior the difference? experiences and positive business outcomes for out partners, their end custome
Slide 16: Partner Reporting / Digital Ecosystem
Partner Reporting P; & insights artner Learning Our Digital Ecosystem Admin Dashboard | Vendor Partner Portals NS AIM & EDI Advanced Search Hybrid Cart Partner Dashboard PARTNERCENTRAL 9 SS ¢ &. 2 RenewView Vendor Integrations Zero Touch yas outs Vendor Product Data . Intelligent Demand ¢SO and POG
Slide 17: Vendors
PartnerCentral can increase a vendor’s reach, provide increased visibility on vendor solutions Vendors and promotions, and provide an frictionless and simplified end-to-end sales experience. Vendor Integrations Vendor Product Data Vendor Partner Data Vendor Sales Data
Slide 18: Data and Analytics
Data and Extensive data and analytics about how partners engage with PartnerCentral give us valuable insights on the partner journey, enabling us to become a truly data driven Analytics organisation. Insights Intelligent Demand Next Generation Analytics Tools Predictive Selling
Slide 19: Sales Process Optimisation
Sales Process Becoming a digitally enabled sales company is one of the top priorities in our strategy. Through Sales Process Optimisation, we redefine and align our sales Optimisation processes globally, establishing a frictionless end-to-end sales capability through state-of-the-art digital tools.
Slide 20: PartnerCentral
PartnerCentral is a single platform for partner to buy and manage hardware, PartnerCentral software and services. But there is so much more! We also give partners the data and insights, learning and vendor content they need to keep pace and grow their business. Partner Reporting Partner Learning & I
Slide 21: Building a responsible business
Building a responsible business What makes We are dedicated to conducting our business in a responsible and sustainable way the difference? ESG Strategy – including: • Net Zero by 2050 and carbon neutral by 2030 • Diversity, Equity & Inclusion programme: One Westcon Our people Our communities Our pl
Slide 22: Awards and recognition
Awards and recognition FY23 YTD: 30 vendor and industry awards won so far Highlights: Cisco Distributor of the Year – Middle East, Australia, Philippines, Sweden, Belgium, Germany, Netherlands Palo Alto Networks EMEA Distributor of the Year Juniper Networks Worldwide Partner of the Year UK: 3 CRN aw
Slide 23: Competitive positioning
Competitive positioning $50bn What makes the difference? Revenue ($ Bn) Westcon Volume International is strategically positioned as a specialist value- added distributor with global reach $0bn 5% Value 12% Gross Margin (%)
Slide 24: Strong leadership team
Strong leadership team 14 Years 8 Years 5 Years What makes Jens Montanana Executive Chairman David Grant Chief Executive Officer Callum McGregor Chief Financial Officer Rakesh Parbhoo Senior Vice President, Westcon-Comstor Middle the difference? East and Africa & Chief Technology Officer • Leading 3
Slide 25: Thank you
Thank you Westcon 4% Comstor