DATATEC LIMITED - Trading statement

Trading statement

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
Share code: DTC
ISIN: ZAE000017745

TRADING STATEMENT

Datatec Limited (JSE: DTC, “Datatec” or “the Group” or “the Company”), the international Information
and Communications Technology (ICT) company is publishing a trading statement for the six months
ended 31 August 2018 (“H1 FY19”).

Datatec had a strong start to the financial year, achieving a solid operational performance across all
divisions with the reshaping of Westcon International and central cost reductions proceeding according to
plan.

In terms 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 the previous corresponding reporting period
(“H1 FY18”).

In this regard, Datatec now expects that for H1 FY19 all earnings per share metrics will be more than
20% higher than the Reported* earnings for H1 FY18, which included the results of the Westcon
Americas business and Logicalis SMC which were disposed of at the start of the second half of FY18, as
well as being notably improved on a Continuing* basis:

    •   Underlying** earnings per share is expected to be between 3 and 4 US cents (H1 FY18
        Reported: 1.4 US cents), being 1.6 to 2.6 US cents, more than 100%, higher than H1 FY18
        Reported. Underlying ** earnings per share from Continuing operations is expected to be
        between 3 and 4 US cents (H1 FY18: loss per share of 8.7 US cents).
    •   Headline earnings per share is expected to be between 0.5 and 1 US cents (H1 FY18
        Reported: loss per share of 5.8 US cents; H1FY18 Continuing: loss per share 14.4 US cents).
    •   Earnings per share is expected to be between 0.5 and 1 US cents (H1 FY18 Reported: loss per
        share of 5.8 US cents; H1FY18 Continuing: loss per share 14.4 US cents).

Forecast information
The forecast financial information contained in this trading statement has not been reviewed nor
reported on by the Group’s external auditors.

The Company expects to release its interim results for H1 FY19 on 18 October 2018.

* In the prior year, FY18, the major disposals of the Westcon Americas business (the SYNNEX deal) and
Logicalis SMC (together the “Disposal Group”) completed at the start of the second half. The H1 FY18
earnings per share figures are therefore separated in accordance with IFRS 5 into:
    •    Reported - including the results of the Disposal Group; and
    •    Continuing – excluding the results of the Disposal Group and comparable with the business
         remaining in the Group in H1 FY19.

** underlying earnings per share excludes 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, SYNNEX deal-related expenses
and the taxation effect of all of the aforementioned.

Sandton
2 October 2018

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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