Datatec Group. HSBC South Africa Conference 3 December Jens Montanana Datatec Group, CEO

Transcription

1 Datatec Group HSBC South Africa Conference 3 December 2012 Jens Montanana Datatec Group, CEO

2 Datatec Group Overview Datatec is a global ICT solutions and services Group - More than 6000 employees - Operations in over 50 countries Holding company structure for three complimentary lines of business: Technology division: global distribution of advanced networking, security and unified communications products (Westcon Group) Integration division: ICT infrastructure solutions and services (Logicalis) Consulting division: strategic and technical consulting (Analysys Mason, Intact and Via Group) Positioned as a multi-play investment opportunity in networking, security and unified communications technologies Long term strategy to deliver sustainable above average returns to shareholders by: Focusing on organic growth in the faster growing sectors of the ICT market 2 Geographic expansion

3 Datatec Group Highlights Highlights H Revenues increase by 7% to $2.62 billion (H1 FY12: $2.44 billion) Underlying* EPS up 8% to 23.5 US cents (H1 FY12: 21.8 US cents) Reduced leverage due to lower organic growth and higher opex at Westcon Significant expansion across Latin America Interim capital dividend distribution increases to 8 US cents from 7 US cents Highlights FY 2012 Revenue $5.03 billion, up 17% EBITDA $190.2 million, up 34% Underlying* earnings per share of 47,9 cents, up 26% Record financial results at all levels Final capital dividend distribution of 9 US cents (full year 16 US cents) 3 * Excluding goodwill and intangibles impairment, amortisation of acquired intangible assets, acquisition related adjustments, profit or loss on sale of assets and businesses, fair value movements on acquisition related financial instruments and unrealised foreign exchange movements

4 Datatec Group Business stream analysis as at 31 August 2013 Revenue Gross profit Distribution ICT Solutions Services 19% 8% 24% 19% 19% 7% 73% 57% 19% H H % H % H % 4

5 Trading Update Third quarter Westcon performance was below expectations and showed contraction European GDP expected to contract in Q4 according to estimates North American supply chain constraints due to Hurricane Sandy Weak demand from US Federal sector Investment slowdown as American fiscal cliff approaches Conditions continue to deteriorate in Europe Logicalis performance remains resilient 5

6 Dean Douglas, CEO Westcon

7 Agenda Westcon Today Industry Trends Game Changers for Growth Wrap-up 7

8 Westcon Today Nortel 100 Information Technology Vendors Nokia Westcon Group $4 bn in Distribution 60% 23% 17% Resellers System Integrators Service Providers 8 Customers (70 Countries)

9 Global Footprint We are present in 55 countries 70+ sales offices and 20+ logistics/staging facilities Logistics/Staging Facilities Regional Sales Offices 9

10 Revenue & EBITDA History $140 $133 $4 500 $4 000 $3 500 $3 000 $2 500 $2 000 $1 500 $1 000 $500 $1.6 $1.8 $1.9 $2.1 $2.4 $3.0 $3.1 $2.8 $3.2 $3.7 $120 $100 $80 $60 $40 $20 $27 $34 $28 $69 $88 $108 $68 $80 $105 $0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 $0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Revenue ($B) EBITDA ($M) 10

11 Revenue Trend FY 2005 FY 2013P 1% 41% 6% 44% 51% 7% 36% 14% North America Latin America EMEA Asia Pacific 11 Revenue increased 99% from $2.2B in 2005 to $4.3B in the 2013P Regional Revenue CAGR s were 4% (NA), 41% (LA), 10% (EMEA) and 14% Asia Pacific

12 EBITDA Trend FY 2005 FY 2013P 2% 82% 5% 6% 39% 9% 41% 12% North America Latin America EMEA Asia Pacific Profit (EBITDA) increased over 550% from 2005 to the 2013P 12 Regional EBITDA CAGR s were 6% NA, 41% LA, 39% EMEA and 26% APAC

13 Customers & Segments Segment % of Total Customers Reseller 59% System Integrator 27% Service Provider 14% Total 100% System Integrators comprise 3 of global top 10 customers BT largest global customer at 3% of revenues 350 Service Providers customers require multi-national focus, GPS and other capabilities 13 Top 10 customers only 12-13% of revenue

14 Geo Diversity Through Acquisition Africa Comztek (Nov 12) Sentronics (Nov 11) Biodata (Sept 10) Europe Triple AcceSSS (Jul 12) entrada Kommunikations GmbH (Jul 11) Crane (Apr 07) Sparnoon-Dynatech (Jun 07) Asia-Pac Netpoleon (Feb 12) Datastor (Oct 09) Inflow (Sept 08) Latin America Afina (Jul 12) Cernet (Oct 07) North America ReView Video (Jul 07) 14

15 Organic Initiatives Westcon Solutions January, 2012 Opened offices in Taiwan, China (Shanghai), Singapore and Hong Kong Westcon appointed as Cisco distributor in Brazil December 2007 Expanded to Mexico August, 2011 Global Cisco Agreement May, 2010 Created Comstor Worldwide F5 Global Agreement July, 2012 Global Procurement Services Organization March, 2010 Global deployments and procurement Opened offices in Eastern Europe and the Nordic countries 15

16 ERP System Evolution Where we were year old JD Edwards platform 1,000+ customizations created system quirks and stagnant processes System quirks became business process inefficiencies Enhancements became cost prohibitive Poor performance in a virtualized environment Where we are SAP rollout with single global template and single set of global business processes Deployment plans included extensive change management & training Implemented in North America during Fiscal Year 2013 Able to quote, order, pick, pack, ship, invoice on day-one of each deployment Where we are headed AsiaPacific in the first half of fiscal year 2014 Subsequent deployments every 5-6 months Europe/Middle East, LATAM, Africa

17 Agenda Westcon Today Industry Trends Game Changers for Growth Wrap-up 17

18 Evolving Role of Distribution + Solution Integration XaaS Aggregation (Cloud) Partner Services Global Deployment Capability Solution expertise, Technical support Partner education and enablement Services to accelerate adoption + 18 Logistics including inventory and shipment Fulfillment cycle financing Product expertise and marketing programs

19 IT Industry Trends IT Industry Disruption Factor Mini 9 7 PC Unix WS Internet/Web.com 100Mb Ethernet Client/Server 56K Modem 5 3 WiFi PDA Y2K Broadband VoIP iphone/ipad & Mobility Virtualization Netbook IT Evolution

20 Market Trends: BYOD / MDM Gartner Group IT Survey Key area for investment in 2013 by IT organisations Bring Your Own Device (BYOD) Connecting personal devices (smart phones, laptops) to corporate network Mobile Device Management (MDM) Strategy for maximizing/securing mobile communications across corporate network 20

21 Agenda Westcon Today Industry Trends Game Changers for Growth Wrap-up 21

22 Game Changers for Growth Geographic expansion Broaden geographic footprint to mitigate reliance on any marketplace Create scale through vendor and skills portfolio Greater vendor relevance Leverage global systems and regionally based management Manage global deployments 22

23 Game Changers for Growth Technology portfolio Software, Server, Storage and Services ( 4S ) Will not disrupt specialty nature of our business model Address new market requirements for Unified Communications and Security Create integrated solutions for vendors moving away from specialty hardware to software only models Serve new virtualization markets and trends 23

24 Agenda Westcon Today Industry Trends Game Changers for Growth Wrap-up 24

25 Summary Mitigating reliance on a few markets Solid presence across six continents Both organic and through acquisition 2/3 rd of revenues outside North America Addressing market trends Technology trends with innovative solutions Industry challenges as value based distribution evolves Executing a strategy that differentiates Westcon Creating value through global coverage Augmenting portfolio to address market requirements 25