Datatec Limited · JSE:DTC
Datatec — Investor Presentation (March 2025)
29 slides from Datatec's investor presentation, March 2025
Slide 1: Logicalis International – Architects of Change
Architects of Change Logicalis International March 2025 Logicalis
Slide 2: Today's presenters from Logicalis International
Today’s presenters from Logicalis International Bob Bailkoski Craig Baxter Win Lee Jon Groves Group CEO Group CFO CEO – APAC CEO – USA Tenure: 9 years Tenure: 16 years Tenure: 7 years Tenure: 5 years Logicalis 2
Slide 3: How Logicalis delivers value
How Logicalis delivers value Datatec is a Global Digital channels company providing cyber security and networked cloud infrastructure through its technology distribution division (Westcon International) and technology infrastructure solutions and managed services through its integration division (Lo
Slide 4: Logicalis' international presence
Logicalis’ international presence North America EMEA Asia Pacific c700 employees c2000 employees c1400 employees 20 FY24 rev $387m FY24 rev $509m FY24 rev $354m Territories +4000 Germany Employees Spain US Portugal c6000 Malaysia Singapore Clients worldwide Brazil South Africa Australia Logicalis 4
Slide 5: Logicalis operates in markets with significant potential for growth
Logicalis operates in markets with significant potential for growth Operating in fast-growing market segments Core addressable market by region End user spend, 2024 (USDbn); 5-year CAGR % (2023-28) North America is the largest addressable market Fast-growing China and APAC markets with 16.6% and 14.
Slide 6: Strong tailwinds in security and AI
Strong tailwinds in security and AI Supporting customers’ evolution to AI-ready infrastructure and • Logicalis partnered with Northumbria University in the UK to deliver high navigation through AI-enabled performance compute technologies to fuel their cutting-edge research. end-user tools • The plat
Slide 7: Logicalis enables business outcomes through technology for the digital-first world
Logicalis enables business outcomes through technology for the digital-first world Our innovative services are designed to help our customers future proof their business for 2025 and beyond. Presence in 20 Robust underlying Global secure territories dealing financial performance network and hybrid w
Slide 8: Goals and strategic foundations for growth
Goals and strategic foundations for growth Logicalis has an ambitious medium term growth plan to capitalise on its strengths. Double the number Achieve an EBITDA Conversion of 30% of GP mix to be >50% Convert 75% of of multinational margin of 8.5% gross profit into services EBITDA minus capex custom
Slide 9: Sustainability at the heart of everything we do
Sustainability at the heart of everything we do Internal focus ► Logicalis committed to CO2 neutral by end of 2025 Case study ► Approved member of the SBTi with approved 2050 We delivered sustainable network transformation for a leading net zero target UK fresh food producer to upgrade their network
Slide 10: Logicalis and Cisco partnership
Logicalis and Cisco partnership Global Gold Partner Global MSP Partner Highly Certified Award Winning As one of only six Logicalis is one of With 1800+ certified Consistently winning Cisco Global Gold partners we the leading Cisco experts and a range of global awards in recognition have partnered wi
Slide 11: Logicalis and Microsoft partnership
Logicalis and Microsoft partnership Global Partner Azure Expert MSP and Highly Specialised MISA Community MXDR partner +15 years of partnership, As a leading partner in the With 1600+ Microsoft As members of 5 years of strong global cloud Microsoft Cloud Partner Program, certifications, we have the
Slide 12: Harnessing our collective expertise
Harnessing our collective expertise Logicalis International has skilled experts in core and emerging technologies with over 5800+ certifications around the world. Enterprise Networking Hybrid Cloud Security • Approximately 760 enterprise • 1800+ cloud certifications across • 700+ security certificat
Slide 13: Decades of IT industry experience
Decades of IT industry experience Bob Bailkoski CEO Cat Dina Craig Win Jon Alex Neil Juergen João Lindie Walkerden Knight Baxter Lee Groves Zaragoza Eke Haetzipantelis Martins Ferreira Marketing People Finance APAC USA Spain UKI Germany Portugal South Africa Logicalis 13
Slide 14: Financial performance – Revenue summary
Financial performance – Revenue summary Revenue $m Revenue by Segment % 1232 1250 23% 25% 27% ► Software and services mix 576 645 575 growth across all regions 16% 16% 17% ► Balanced regional 15% 13% 14% contribution FY23 FY24 FY25 H1 FY 46% 46% 42% Regional Revenue Contribution % FY23 FY24 H1 FY25
Slide 15: Financial performance – Operating summary
Financial performance – Operating summary Gross Profit $m Adj. EBITDA $m 74 339 66 306 ► Robust gross profit 38 performance 158 164 137 27 28 ► Operating efficiencies driving EBITDA growth FY23 FY24 FY25 FY23 FY24 FY25 H1 FY H1 FY Adj. EBITDA % of Gross Profit Adj. EBITDA % of Revenue FY23 FY24 H1 F
Slide 16: Financial performance – Balance sheet summary
Financial performance – Balance sheet summary $m FY22 FY23 FY24 Assets 977 1088 1095 ► Improved operating cash flows Non-current assets Goodwill 204 210 210 ► Reduction in net debt Acquired intangible assets & software 21 12 10 Other non-current assets 111 112 131 Current assets 641 754 744 Liabilit
Slide 17: Logicalis USA deep dive
Logicalis USA deep dive With c650 employees, Logicalis USA offers lifecycle services across cloud, infrastructure, collaboration and security designed to help optimize operations, reduce risk and empower employees. Geographical presence Strong growth performance 117 106 61 FY23 FY24 H1 FY25 Gross pr
Slide 18: Diversified client base in multiple industry segments
Diversified client base in multiple industry segments Top 10 Clients Education End Market Length of Relationship % of Total 7% Client A Healthcare 9.5 6.3% Client B Finance 20 5.5% Client C Manufacturing 15 5.0% Manufacturing Client D Healthcare 9 3.2% 15% Client E Engineering 20 3.1% Healthcare Cli
Slide 19: Achievable growth opportunities
Achievable growth opportunities Logicalis is poised to capitalize on positive industry tailwinds and numerous company-specific growth opportunities. Vendor Significant Continued Emerging partnership with volume of M&A organic sales infrastructure established and opportunities growth solutions emergi
Slide 20: Logicalis Asia Pacific deep dive
Logicalis Asia Pacific deep dive One of only a handful of pan-APAC IT solution providers with comprehensive go-to-market offerings across application and data modernization, hybrid cloud, cyber security, networking and modern workplace. Geographical presence Strong growth performance 86 ASEAN 77 Sin
Slide 21: Asia Pacific region ICT market
Asia Pacific region ICT market 670 million population ASEAN GDP $4 trillion projected to grow at 4.5% 1.4 billion population in China, with $18 trillion GDP projected to grow at 4.5% Greater China 30 million population in HK and Taiwan with GDP of $1.1 trillion projected to grow at 4% 27 million pop
Slide 22: Asia Pacific growth opportunities
Asia Pacific growth opportunities Logicalis Asia Pacific has several region-specific growth opportunities which the business is well-poised to take advantage of. Organic upsell and cross-sell Asia Pacific unique growth Continued organic sales opportunities in existing themes growth footprint Logical
Slide 23: Logicalis EMEA deep dive
Logicalis EMEA deep dive With c2,000 employees and several global service delivery centres, Logicalis EMEA is core to Logicalis’ global inter-connectedness. Geographical presence and population Robust growth across the region Country Population IT market growth 135 123 UK & Ireland 75m 14.0% Germany
Slide 24: Stable and diverse mix of industries across EMEA
Stable and diverse mix of industries across EMEA Professional Services 6% Engineering 15% Vertical Territory specialism Retail and TMT 16% Financial services Germany, Spain Gov/Ed Retail and TMT UKI, Portugal 11% Other 1% Engineering (incl mining) Portugal, South Africa Manufacturing Germany Manufac
Slide 25: EMEA is a critical part of Logicalis International
EMEA is a critical part of Logicalis International Logicalis EMEA is a central part of the group’s operations providing network and security managed services to all Logicalis operations as well as providing innovative solutions to domestic clients. Supporting EMEA clients with security governance an
Slide 26: Competitive positioning
Competitive positioning The IT ecosystem Vendors Distributors Value Added Resellers IT Solutions Services/Integrators 30-75% GM 5-15% GM 15-25% GM 25-30% GM 30%+ GM Gross Margin Increasing customer value and vendor margins Distribution Focused Services Oriented Logicalis 26
Slide 27: M&A platform
M&A platform Proven corporate and M&A development competency to support inorganic growth strategy. 21 acquisitions completed Inorganic Growth Strategy in the past 10 years Further scale in Expand presence Augment strategic North America in Asia/SE Asia capabilities in EMEA Networking and India, Thai
Slide 28: The investment case
The investment case ► Artificial intelligence and security will drive growth in Logicalis core solutions going forward ► Logicalis operates internationally in large fragmented markets, providing IT solutions over many years to local and international businesses ► We align with brand name and emergin
Slide 29: Thank you
Thank you Logicalis 29