Datatec Limited · JSE:DTC
Datatec — H1 FY2027 Earnings Presentation
69 slides from Datatec's earnings presentation, October 2026
Slide 1: Condensed unaudited interim results for the six months ended 31 August 2026
Condensed unaudited interim results for the six months ended 31 August 2026
Slide 2: Slide 2
Slide 3: Contents and About Us
CONTENTS ABOUT US Group performance highlights 2 Datatec is an international ICT solutions and services group operating in more Datatec Group at a glance 4 than 50 countries across North America, Our presence and core divisions 6 Latin America, Europe, Africa, the Middle East, and Asia-Pacific. Thro
Slide 4: Group performance highlights
GROUP PERFORMANCE HIGHLIGHTS Gross invoiced income (US$ billion) Gross profit+ (US$ million) Adjusted EBITDA (US$ million) 4.8 511.2 150.7 4.1 483.4 129.2 US$ 4.8 billion US$ 511.2 million US$ 150.7 million 18.0% 5.8% 16.6% H1 FY26 H1 FY27 H1 FY26 H1 FY27 H1 FY26 H1 FY27 Underlying earnings per shar
Slide 5: Group performance highlights continued
GROUP PERFORMANCE HIGHLIGHTS continued Westcon refinancing transaction AI infrastructure boost Strong operational execution with General Atlantic returned ZAR 7.1 billion (US$438 million) to shareholders Continuing strong Westcon Exceptional Logicalis Weak Logicalis Latin America financial performan
Slide 6: Datatec Group at a glance – our story and presence
DATATEC GROUP AT A GLANCE – OUR STORY AND PRESENCE Who we are and what we do Datatec is an international information and communication technology (“ICT”) solutions and services group. It was founded 40 years ago in 1986 and has been listed on the Johannesburg Stock Exchange (“JSE”) since 1994 and wa
Slide 7: Our investment proposition
DATATEC GROUP AT A GLANCE – OUR STORY AND PRESENCE continued Our investment proposition Diversity Operate Financial strength Related but operationally dissimilar At multiple points of the Sustained profitable growth businesses diversify income and provide ICT supply chain and financial position uniq
Slide 8: Our presence and core divisions
OUR PRESENCE AND CORE DIVISIONS The Group has a global presence, operating in more than 50 countries across North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific. Through its core divisions, the Group offers Technology Distribution (Westcon International) and Integration an
Slide 9: Strategy
STRATEGY Improving shareholder returns Our strategy Closing the valuation gap Positioned for growth Datatec’s strategy is to improve The Group continues to address the The Group is ensuring that it is positioned shareholder returns through a combination persistent gap between Datatec’s to take full
Slide 10: Westcon refinancing transaction
WESTCON REFINANCING TRANSACTION On 4 August 2026, Westcon completed a refinancing and minority investment transaction with Atlantic Park Strategic Capital II Designated Activity Company and Atlantic Park Strategic Master Fund III, L.P. (together, “General Atlantic”) in relation to Westcon Internatio
Slide 11: Westcon refinancing transaction continued – strategic rationale
WESTCON REFINANCING TRANSACTION continued Strategic rationale The Board believes that the transaction is in the best interests of Datatec and its shareholders for the following reasons: • Strategic partner: General Atlantic’s equity co-investment and ownership of the warrant shares align its interes
Slide 12: Dividends
DIVIDENDS Dividend policy The dividend policy remains unchanged, with a two-times cover maintained relative to underlying earnings when declaring ordinary dividends. Dividends declared The Board declared the following special and interim dividends, in the usual form of a cash dividend with scrip dis
Slide 13: Current trading and outlook
CURRENT TRADING AND OUTLOOK AI adoption is accelerating investment in IT infrastructure as it expands into the enterprise and the edge of the internet, increasing the need for secure networked environments. IT infrastructure is expected to account for a growing proportion of private and public-secto
Slide 14: Group results
GROUP RESULTS Salient financial features Six months to Restated^ six months % US$ million 31 August 2026 to 31 August 2025 movement Gross invoiced income 4 835.0 4 096.1 18.0% Revenue^ 2 024.1 1 777.2 13.9% Gross profit 511.2 483.4 5.8% Gross margin (%)^ 25.3% 27.2% Operating costs (360.5) (338.7) 6
Slide 15: Group results continued
GROUP RESULTS continued Gross invoiced income increased by 18.0%, with Europe contributing Gross profit increased by 5.8%. Prior year gross profit included approximately half, while revenue^ increased by 13.9%, mainly due to indirect tax credits of US$15.5 million relating to ongoing tax litigation
Slide 16: Group results continued – liquidity and borrowing facilities
GROUP RESULTS continued t Six months to Six months to Year ended US$ million 31 August 2026 31 August 2025 28 February 2026 Cash resources 1 074.8 660.9 704.1 Bank overdrafts (125.4) (174.1) (139.8) Short-term interest-bearing liabilities and short-term leases (643.6) (450.8) (531.6) Long-term inter
Slide 17: Group results continued – recoverable tax credits, subsequent events
GROUP RESULTS continued – Asia-Pacific: A securitisation facility of US$130.0 million, accounts receivable facilities totalling US$11.0 million, as well as extended payables facilities of US$50.0 million. – The Middle East and Africa: Accounts receivable facility totalling US$25.0 million in the Mid
Slide 18: Divisional results – Westcon International
DIVISIONAL RESULTS – WESTCON INTERNATIONAL Restated^ Salient financial features Six months to six months to % US$ million 31 August 2026 31 August 2025 movement Westcon International is a global Gross invoiced income 3 371.5 2 778.4 21.3% specialist distributor of industry- Revenue^ 1 127.3 920.5 22
Slide 19: Divisional results – Westcon International continued
DIVISIONAL RESULTS – WESTCON INTERNATIONAL continued Gross invoiced income increased by 21.3%, while revenue^ Gross profit increased by 4.4%, compared with revenue^ growth of increased by 22.5% due to product mix, with a higher proportion of 22.5%, reflecting the impact of several large, low-margin
Slide 20: Divisional results – Logicalis International
DIVISIONAL RESULTS – LOGICALIS INTERNATIONAL Salient financial features Six months to Six months to % US$ million 31 August 2026 31 August 2025 movement Gross invoiced income 1 226.2 1 037.1 18.2% Logicalis International is a global Revenue 697.0 612.9 13.7% digital transformation and managed Gross
Slide 21: Divisional results – Logicalis International continued
DIVISIONAL RESULTS – LOGICALIS INTERNATIONAL continued Gross invoiced income increased by 18.2% due to strong trading Gross margin strengthened, driven by improved services margins in both product and annuity services. All regions reflected strong attributable to better efficiency in delivery, and i
Slide 22: Divisional results – Logicalis Latin America
DIVISIONAL RESULTS – LOGICALIS LATIN AMERICA Salient financial features Six months to Six months to % US$ million 31 August 2026 31 August 2025 movement Gross invoiced income 218.7 260.9 (16.2%) Logicalis Latin America is a Revenue 181.2 224.0 (19.1%) regional digital transformation Gross profit 39.
Slide 23: Divisional results – Logicalis Latin America continued
DIVISIONAL RESULTS – LOGICALIS LATIN AMERICA continued Gross invoiced income and revenue decreased, primarily due to a The decrease in gross profit and gross margin is mainly attributable lower opening backlog and reduced order intake. to the reduced trading volumes in the division. Operating costs
Slide 24: Divisional results – Management Consulting and Corporate
DIVISIONAL RESULTS – MANAGEMENT CONSULTING AND CORPORATE MANAGEMENT CONSULTING CORPORATE Revenue of Corporate includes Group head office companies, including the US$16.7 million ultimate Logicalis holding company, Logicalis Group Limited and its associated costs, the consolidated results of Kumulus
Slide 25: Cash dividend and scrip distribution alternative
CASH DIVIDEND AND SCRIP DISTRIBUTION ALTERNATIVE Introduction Introduction Notice is hereby given that the Board has declared an interim distribution for the six months ended 31 August 2026, by way of an interim cash dividend of 250 ZAR cents per Datatec ordinary share (“Cash Dividend”) payable to t
Slide 26: Cash dividend and scrip distribution alternative – circular and salient dates
CASH DIVIDEND AND SCRIP DISTRIBUTION ALTERNATIVE continued C Circular and salient dates A circular providing Shareholders with full information on the Cash Dividend or Scrip Distribution alternative, including a Form of Election to elect to receive the Scrip Distribution alternative will be distribu
Slide 27: Condensed unaudited consolidated financial statements for the six months ended 31 August 2026
Condensed unaudited consolidated financial statements for the six months ended 31 August 2026
Slide 28: Contents
CONTENTS Basis of preparation 27 Notes to the condensed Primary statements consolidated financial statements Condensed consolidated statement of comprehensive income 30 1. Prior period revenue recognition 37 Condensed consolidated statement of financial position 32 2. Determination of headline earni
Slide 29: Basis of preparation
BASIS OF PREPARATION The interim report is prepared in accordance with and contains the information required by IAS 34 Interim Financial Reporting, as well as the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Slide 30: Basis of preparation continued
BASIS OF PREPARATION continued New standards, amendments to existing standards and interpretations that are not yet effective and have not yet been early adopted At the date of authorisation of these interim financial statements, the following new or revised accounting standards and amendments to ex
Slide 31: Basis of preparation continued – critical judgements
BASIS OF PREPARATION continued Critical judgements The results contain sources of estimation and uncertainty in the following areas: The results of the Group have many areas where key assumptions concerning the future, and other key areas of estimation could have a • estimates made in determining th
Slide 32: Condensed consolidated statement of comprehensive income
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the six months to 31 August 2026 Unaudited Unaudited Restated^ Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Revenue*/^ 2 024 145 1 777 191 3 670 046 Cost of sales^ (1 512 946) (1 293
Slide 33: Condensed consolidated statement of comprehensive income continued
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME continued for the six months to 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Other comprehensive income Items that may be reclassified subsequently to
Slide 34: Condensed consolidated statement of financial position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Assets Non-current assets 1 245 922 1 027 538 1 080 142 Goodwill 290 172 279 374 290 128 Property, pla
Slide 35: Condensed consolidated statement of financial position continued
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION continued as at 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Equity and liabilities Equity attributable to equity holders of the parent 162 325 488 197 5
Slide 36: Condensed consolidated statement of cash flows
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS for the six months to 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Profit before taxation 88 514 86 350 162 692 Non-cash items 43 221 34 725 59 230 Settlement of
Slide 37: Condensed consolidated statement of cash flows continued
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS continued for the six months to 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Net proceeds/(outflows) from transactions with non-controlling interests 9 180 (480)
Slide 38: Condensed consolidated statement of changes in total equity
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY for the six months to 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Balance at the beginning of the period 618 480 594 607 594 607 Transactions with
Slide 39: 1. Prior period revenue recognition
1. PRIOR PERIOD REVENUE RECOGNITION During FY26, after reconsidering previous judgements applied, the The amount of the restatement for 31 August 2025 is shown in the Group identified an error relating to revenue of a specific product in table below: Westcon International which was presented on a gr
Slide 40: 2. Headline earnings; 3. Salient financial features
2. DETERMINATION OF HEADLINE 3. SALIENT FINANCIAL EARNINGS FEATURES for the six months to 31 August 2026 for the six months to 31 August 2026 Unaudited Unaudited Audited Unaudited Six months Six months Unaudited Restated^ Audited to to Year ended Six months Six months 31 August 31 August 28 February
Slide 41: 4. Goodwill reconciliation; 5. Capital expenditure and commitments
4. GOODWILL RECONCILIATION 5. CAPITAL EXPENDITURE AND COMMITMENTS as at 31 August 2026 as at 31 August 2026 Unaudited Unaudited Audited Unaudited Unaudited Audited Six months Six months Six months Six months to to Year ended to to Year ended 31 August 31 August 28 February 31 August 31 August 28 Feb
Slide 42: 6. Financial instruments
6. FINANCIAL INSTRUMENTS as at 31 August 2026 The table that follows sets out the Group’s classification of each class of Acquisition-related liabilities represent purchase considerations owing in financial instrument, at their fair values. The carrying amounts of these respect of acquisitions. The
Slide 43: 6. Financial instruments continued
6. FINANCIAL INSTRUMENTS continued as at 31 August 2026 Unaudited Unaudited Audited Six months to Six months to Year ended US$’000 31 August 2026 31 August 2025 28 February 2026 Financial assets Financial assets at amortised cost Gross trade accounts receivable 2 111 195 1 810 091 1 986 095 Less: Ex
Slide 44: 7. Additional risk disclosures – liquidity and trade receivables
7. ADDITIONAL RISK DISCLOSURES as at 31 August 2026 Liquidity and borrowing facilities The Group is dependent on its bank overdrafts and trade finance facilities to The Group continues to monitor the funding needs of its individual operate. These facilities generally consist of either a fixed term o
Slide 45: 7. Additional risk disclosures – days past due
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Days past due The following tables detail the credit risk profile of trade receivables plans in place with the relevant customers or discussions with the based on the Group’s provision matrix. customers are ongoing to resolve the payment
Slide 46: 7. Additional risk disclosures – Westcon International
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Unaudited – Six months to 31 August 2026 North Latin Asia- US$’000 America America Europe Pacific MEA Total Westcon International Current 5 592 – 970 741 317 029 169 258 1 462 620 1 – 30 days past due (19) – 41 978 38 943 21 479 102 381 3
Slide 47: 7. Additional risk disclosures – Logicalis Latin America
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Unaudited – Six months to 31 August 2026 North Latin Asia- US$’000 America America Europe Pacific MEA Total Logicalis Latin America Current – 53 025 – – – 53 025 1 – 30 days past due – 10 761 – – – 10 761 31 – 60 days past due – 3 231 – –
Slide 48: 7. Additional risk disclosures – Group total prior period
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Unaudited – Six months to 31 August 2025 North Latin Asia- US$’000 America America Europe Pacific MEA Total Datatec Group Total Current 62 060 85 963 914 866 287 542 136 343 1 486 774 1 – 30 days past due 19 804 9 635 74 624 45 515 20 125
Slide 49: 7. Additional risk disclosures – Logicalis International prior period
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Unaudited – Six months to 31 August 2025 North Latin Asia- US$’000 America America Europe Pacific MEA Total Logicalis International Current 61 201 – 86 317 47 955 2 497 197 970 1 – 30 days past due 19 767 – 16 170 11 922 838 48 697 31 – 6
Slide 50: 7. Additional risk disclosures – Corporate and Management Consulting
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Unaudited – Six months to 31 August 2025 North Latin Asia- US$’000 America America Europe Pacific MEA Total Corporate and Management Consulting Current – 105 3 093 – – 3 198 1 – 30 days past due – 71 444 – – 515 31 – 60 days past due – 15
Slide 51: 7. Additional risk disclosures – audited year Group total
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Audited – Year ended 28 February 2026 North Latin Asia- US$’000 America America Europe Pacific MEA Total Datatec Group Total Current 95 662 81 617 1 076 220 306 964 141 974 1 702 437 1 – 30 days past due 11 928 7 201 39 346 39 666 22 902
Slide 52: 7. Additional risk disclosures – audited year Logicalis International
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Audited – Year ended 28 February 2026 North Latin Asia- US$’000 America America Europe Pacific MEA Total Logicalis International Current 90 562 – 104 960 46 753 1 866 244 141 1 – 30 days past due 11 672 – 13 941 12 052 1 335 39 000 31 – 6
Slide 53: 7. Additional risk disclosures – Corporate and Management Consulting
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Audited – Year ended 28 February 2026 North Latin Asia- US$’000 America America Europe Pacific MEA Total Corporate and Management Consulting Current – 352 5 678 127 – 6 157 1 – 30 days past due – 11 71 (2) – 80 31 – 60 days past due – – (
Slide 54: 7. Additional risk disclosures – expected credit loss reconciliation
7. ADDITIONAL RISK DISCLOSURES continued as at 31 August 2026 Unaudited – Six months to 31 August 2025 North Latin Asia- US$’000 America America Europe Pacific MEA Total Balance at 1 March 2025 (788) (1 785) (9 274) (3 234) (16 429) (31 510) Impairment losses recognised on trade receivables – (210)
Slide 55: 8. Condensed segmental analysis
8. CONDENSED SEGMENTAL ANALYSIS for the six months ended 31 August 2026 For management’s internal purposes, the Group is currently organised During H1 FY27, H1 FY26 and FY26, there were no customers that into four operating divisions which are the basis on which the Group individually accounted for
Slide 56: 8. Condensed segmental analysis continued
8. CONDENSED SEGMENTAL ANALYSIS continued for the six months ended 31 August 2026 Datatec Group Westcon International Unaudited Unaudited Unaudited Restated^ Audited Unaudited Restated^ Audited Six months to Six months to Year ended Six months to Six months to Year ended 31 August 31 August 28 Febru
Slide 57: 8. Condensed segmental analysis continued
8. CONDENSED SEGMENTAL ANALYSIS continued for the six months ended 31 August 2026 Logicalis International Logicalis Latin America Corporate and Management Consulting Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited Six months to Six months to Year ended Six months
Slide 58: 8. Condensed segmental analysis continued
8. CONDENSED SEGMENTAL ANALYSIS continued for the six months ended 31 August 2026 Datatec Group Westcon International Unaudited Unaudited Audited Unaudited Unaudited Audited Six months to Six months to Year ended Six months to Six months to Year ended 31 August 31 August 28 February 31 August 31 Aug
Slide 59: 8. Condensed segmental analysis continued
8. CONDENSED SEGMENTAL ANALYSIS continued for the six months ended 31 August 2026 Logicalis International Logicalis Latin America Corporate and Management Consulting Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited Six months to Six months to Year ended Six months
Slide 60: 9. Cash and cash equivalents; 10. Additional statement of financial position disclosures
9. CASH AND CASH EQUIVALENTS 10. ADDITIONAL STATEMENT OF FINANCIAL POSITION DISCLOSURES as at 31 August 2026 as at 31 August 2026 Unaudited Unaudited Audited Special dividend Six months Six months On 24 August 2026, the Company declared a special dividend of 2 900 ZAR to to Year ended cents per ordi
Slide 61: 11. Contingent liabilities; 12. Subsequent events
10. ADDITIONAL STATEMENT OF FINANCIAL 11. CONTINGENT LIABILITIES POSITION DISCLOSURES continued as at 31 August 2026 as at 31 August 2026 The Group has certain contingent liabilities resulting from litigation and Multi-year contracts claims. Management believes, after taking legal advice where Inclu
Slide 62: 13. Going concern
13. GOING CONCERN as at 31 August 2026 The Board has reviewed the future profit and cash flow projections in • Logicalis International is supported by a corporate facility of conjunction with the current economic climate as well as banking US$110.0 million, covering all its operations, comprising a
Slide 63: 14. Pro forma supplementary information – adjusted EBITDA
14. PRO FORMA SUPPLEMENTARY INFORMATION for the six months to 31 August 2026 The Group uses certain non-IFRS measures to assess the financial 1. Adjusted EBITDA performance of the business and presents these as pro forma supplementary financial information. The pro forma adjustments to Earnings Befo
Slide 64: 14. Pro forma supplementary information – underlying earnings
14. PRO FORMA SUPPLEMENTARY INFORMATION continued for the six months to 31 August 2026 2. Underlying earnings Six months Six months to to Year ended The pro forma adjustments to headline earnings are to align with 31 August 31 August 28 February international peer reporting. US$’000 2026 2025 2026 U
Slide 65: 14. Pro forma supplementary information – gross invoiced income
14. PRO FORMA SUPPLEMENTARY INFORMATION continued for the six months to 31 August 2026 3. Gross invoiced income Gross invoiced income (“GII”) assists the Group and the users of the financial information in understanding revenue growth on a ‘principal’ basis. This measure allows an alternative view o
Slide 66: Glossary
GLOSSARY CEO Chief Executive Officer Logicalis Latin Comprises the Logicalis business in Latin America America CFO Chief Financial Officer SAICA South African Institute of Chartered Accountants Corporate and Corporate includes Group head office companies, Management including the ultimate Logicalis
Slide 67: Financial and technical definitions
FINANCIAL AND TECHNICAL DEFINITIONS Financial definitions Technical definitions Adjusted EBITDA EBITDA excluding restructuring costs, share-based AI Artificial intelligence payments, one-off tax items impacting EBITDA and acquisition, integration and corporate actions costs Data centre A centralised
Slide 68: Corporate details and directors
CORPORATE DETAILS Datatec Limited Incorporated in the Republic of South Africa Registration number: 1994/005004/06 Share code: JSE: DTC OTCQX: DTTLF ISIN: ZAE000017745 Registered office: 15th Floor, The Leonardo, 75 Maude Street, Sandown, Sandton, 2146 Datatec Limited Aprio Strategic Communications
Slide 69: Datatec – The Digital Channels Company
——} DATATEC The Digital Channels Company www.datatec.com www.westconcomstor.com www.logicalis.com www.la.logicalis.com www.masonadvisory.com