Interim Management Statement Datatec Limited (Incorporated in the Republic of South Africa) (Registration number: 1994/005004/06) ISIN: ZAE000017745 Share Code: DTC Interim Management Statement Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and Communications Technology (ICT) group, is today publishing an IMS (Interim Management Statement) covering the period from 1 March 2014 to 30 June 2014 ("the Period"). Group The Group has delivered a satisfactory performance over the Period. Overall Group revenues are higher than those for the four months ended 30 June 2013 ("the Comparative Period"). Westcon’s financial performance continues to improve as it successfully addresses the operating issues experienced during the financial year ended 28 February 2014 ("FY14"). Logicalis is experiencing a slow-down in trading, most of which was anticipated as part of the FIFA World Cup in Brazil. Jens Montanana, Chief Executive Officer said: "Trading conditions across the Group remain varied. However, our strategy of developing a global footprint and the diversification of our business streams, continues to provide resilience and sustainable growth for the Group. "We are very pleased with the progress Westcon is making in increasing operating efficiency and we are seeing volume pick up and market share gains. "While Logicalis has experienced a slow-down in trading we remain confident, based on the significant backlog of business, that trading will recover in the second half.” On 14 May 2014 the Group published a forecast for the financial year ending 28 February 2015 ("FY15") for revenues above $6 billion and underlying* earnings per share of more than 40 US cents. This forecast was based on the following assumptions: revenue growth will be largely driven by an improved performance at Westcon; Westcon’s revenues will constitute approximately 72% of the total revenue mix and Logicalis’ revenues 27%; a small improvement in operating margins at Westcon and Logicalis; an effective Group tax rate of 34%. The slow-down at Logicalis’ Brazil unit is expected to impact Group earnings at the half-year reporting stage. However, based on current exchange rates, market conditions and the increased backlog at Logicalis, the Group's forecast for FY15 remains unchanged. Westcon Westcon has achieved revenue growth of 11% over the Comparative Period. Growth was achieved in all geographical markets except Asia Pacific. In North America, revenues were 17% higher over the Comparative Period. Gross margins have been sustained relative to the Comparative Period. Logicalis Logicalis reported revenue 8% below that of the Comparative Period. The FIFA World Cup has resulted in telecommunications and service providers suspending installation activities on their networks. Logicalis’ sales backlog indicates that business should return to expected levels but this effect will skew the division’s results more towards the second half of FY15. Gross margins continued to improve as the share of annuity services revenue continues to grow in the sales mix. Consulting Services Trading in the consulting Services Division was satisfactory. In June 2014, the business of the Intact Group was transferred into Westcon Group to support the newly established services operations of Westcon. Interim results The Group expects to release its half year results for the six months ending 31 August 2014 on Wednesday 15 October 2014. The financial information on which this statement is based has not been reviewed and reported on by Datatec's external auditors. * Excluding impairment 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 and the taxation effect on all of the aforementioned. ENDS Enquiries: Datatec Limited (www.datatec.co.za) Jens Montanana, Chief Executive Officer +44 (0) 1753 797 118 Jurgens Myburgh, Chief Financial Officer +27 (0) 11 233 3301 Wilna de Villiers, Group Marketing Manager +27 (0) 11 233 1013 Jefferies Hoare Govett – Nominated Advisor and Broker Nick Adams/ Alex Collins +44 (0) 20 7029 8000 finnCap – Broker Tom Jenkins / Henrik Persson +44 (0) 20 7220 0500 Instinctif Partners Adrian Duffield (UK) +44 (0) 20 7457 2020 Frederic Cornet (SA) +27 (0) 11 447 3030 Sandton 17 July 2014 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 17/07/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.