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 2023 (“FY23”). The
comparative year ended 28 February 2022 is referred to as FY22 throughout this
announcement.

The Group delivered a strong operational performance during FY23 benefiting from continuing
strong trends in networking and cyber security. Westcon International delivered another
excellent financial performance. Logicalis International achieved a solid result and Logicalis
Latin America had a much improved second half, with signs of supply chain improvements
materialising.

During FY23, Datatec also successfully concluded the disposal of Analysys Mason and the
US$109.9 million profit on sale of the division is reflected in the basic earnings per share metric
but not the headline or underlying* earnings per share metrics below.

Further to the trading update on 27 March 2023, Group revenue for FY23 is expected to be
approximately US$5.14 billion, representing a 13% increase on the US$4.55 billion generated
in FY22 from continuing operations following the disposal of Analysys Mason.

The excellent performance of Westcon International in recent years has driven an increase in
the valuation of the division resulting in an exceptionally high IFRS 2 charge for the Group of
US$52.6 million from continuing operations and US$2.6 million from discontinued operations
in FY23 relating to its share-based remuneration plans which materially impacted all of the
earnings metrics noted below.

If underlying* earnings per share was normalised to exclude the IFRS 2 charge from continuing
and discontinued operations, FY23 underlying* earnings per share would be 29.5 US cents
(FY22: 27.4 US cents). The board intends to use this normalised earnings metric as a reference
point when considering any final dividend declaration for FY23.

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 FY22.

The preparation of the FY23 results has reached the stage where the Group has such a
reasonable degree of certainty and advises shareholders as follows:

•   Earnings per share is expected to be 36.9 US cents (FY22: 16.7 US cents) being 20.2 US
    cents (more than 100%) higher than FY22;
•   Headline loss per share is expected to be 9.3 US cents (FY22 headline earnings per
    share: 16.2 US cents) being 25.5 US cents (more than 100%) lower than FY22, mostly
    impacted by the once-off IFRS 2 charge;

•   Underlying* earnings per share is expected to be 7.9 US cents (FY22: 18.7 US cents),
    being 10.8 US cents (58%) lower than FY22.


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 FY23 results on SENS on or about 23 May 2023.

* underlying earnings per share excludes the following: 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, one-off tax items impacting EBITDA, costs relating to acquisitions,
integration and corporate actions and the taxation effect of all of the aforementioned.

Johannesburg
18 May 2023

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