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DATATEC GROUP

DATATEC GROUP. AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2005 Jens Montanana CEO. DATATEC GROUP. Trading Environment Technology industry has resumed modest growth Excess capacity in invested capital and human resources still exists Services recovery has gained traction

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DATATEC GROUP

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  1. DATATEC GROUP AUDITED RESULTSFOR THE YEAR ENDED 28 FEBRUARY 2005 Jens MontananaCEO

  2. DATATEC GROUP • Trading Environment • Technology industry has resumed modest growth • Excess capacity in invested capital and human resources still exists • Services recovery has gained traction • All major countries where we operate have experienced growth • Improvements in productivity will ensure profitable growth

  3. DATATEC GROUP • Performance Highlights • Growth in revenues, a return to profitability and improved cash • Reduction in overall operating costs of $10m • Operating profit improvement up $20m to a positive $7m from loss of ($13m) • HEPS of US$ 4c compared with previous loss of US$ 6.7c • Gross margin improvement in 2nd half compared with 1st half • Services accounted for a larger share of revenues and profits • Adoption of IFRS

  4. FY 2004 FY 2005 DATATEC GROUP • Revenues ($ million) $2,538 $2,347 Continuing revenues grew by 10 % from $2.2 billion to $2.4 billion

  5. DATATEC GROUP • Revenue by Region Europe 36% Asia 6% South America 1% South Africa + ME 3% North America 54%

  6. FY 2004 FY 2005 DATATEC GROUP • Gross Margin ($ million) $275.42m $266.25m

  7. FY 2004 FY 2005 DATATEC GROUP • EBITDA ($ million) $24.9m $23.8m

  8. FY 2004 FY 2005 DATATEC GROUP • Total Headline Earnings / (Loss) Per Share 3.95 (6.69) US Cents

  9. FY 2004 FY 2005 DATATEC GROUP • Net Cash $140m $89m Strong net cash position

  10. Westcon AMG Logicalis DATATEC GROUP • Segmental Analysis

  11. DATATEC GROUP • Future Outlook • All divisions have greater scale and are expected to grow profitably next year • Improving profitability and larger contribution from services divisions • Gross margin recovery in Westcon will drive operating margin expansion • Well managed balance sheet and strong cash position • Continued organic and acquisitive growth • Improved profits going forward

  12. DATATEC GROUP • IT Products and Services Supply Chain DISTRIBUTOR INTEGRATOR /VAR END USER VENDOR WESTCON Tech Data Ingram Micro Avnet LOGICALIS Didata Computer Centre Morse • Financial Services • Manufacturing • Retail • Telecomms Cisco IBM HP Avaya CONSULTING ANALYSYS MASON GROUP

  13. WESTCON GROUP RESULTS FOR THE 12 MONTHSENDED 28 FEBRUARY 2005

  14. WESTCON GROUP • Highlights • Revenue exceeds $2bn with increases over all geographic regions • Gross margins declined from 8.8% to 7.7% • Company generated $6m cash from operations • Executive management changed mid year. Second half indicators show results of management discipline and better execution • Americas and Asia Pacific performed above expectation for the year but Europe below

  15. WESTCON GROUP • Actions Implemented • Change of executive management • Tom Dolan, CEO Brian Weisfeld, SVP Operations • Duncan Potter, VP Marketing Nancy Saltzman, VP Legal • Restructured operations in Europe and US • Centralized warehousing; closed offices; reduced headcount • $3.0m in European restructuring charges; Anticipated savings of $3.6min FY 2006 • Sales and marketing refocus • Clarity of European management, • Appointed Simon Minett COO • Recruiting Executive Vice President Europe • Trimmed Westcon Europe to voice focused (VoicePoint) model • Reinvigorated price/margin discipline • Corporate re-engagement with vendors on worldwide basis

  16. WESTCON GROUP • Early Effects - Half Year Comparison • Better controlled revenue growth with margin discipline raised gross margins close to 8% in 2nd half and should continue to improve • Cost controls have reduced operating expenses as a percentage of sales from 6.6% in 1st half to 6.3% in 2nd half • EBITDA, as a % of sales, increases from 1.0% in 1st half to 1.5% in 2nd half • Pre-tax income rose from $2m in 1st half to $6m in 2nd half

  17. WESTCON GROUP • Consolidated Financial Results *Excludes costs associated with consolidation of facilities, personnel changes and expensingof previously capitalized IPO costs

  18. Americas Asia Pacific Europe WESTCON GROUP • Revenue - Geographic Split % of Revenue 38% 38% 6% 7% 56% 55% FY 2004 FY 2005 Americas generated 55% of revenue

  19. Cisco Nortel Avaya Security Other WESTCON GROUP • Revenue - Product Vendor Mix % 9% 10% 9% 10% 10% 11% 15% 15% 56% 55% FY 2004 FY 2005 Cisco remains the dominant vendor

  20. 12 10 8 6 4 2 0 Americas Europe Asia Pacific Total % Year Ended Feb 2004 Feb 2005 WESTCON GROUP • Gross Margin % 10.3 8.8 8.8 8.2 7.9 7.8 7.7 7.3 Gross Margins increase slightly in Americas, decrease in Asia Pacific and Europe

  21. Americas Europe Asia Pacific Total Year Ended Feb 2004 Feb 2005 WESTCON GROUP • EBITDA $000 40 36,171 30 25,043 21,215 18,368 20 13,198 10 3,600 3,076 1,759 0 $000 EBITDA increases in Americas and Asia Pacific, decreases in Europe Note: Americas results include US non-operating companies

  22. WESTCON GROUP • Consolidated Balance Sheet - Working Capital - US GAAP Note: Ratios based on trailing twelve month averages

  23. WESTCON GROUP • Consolidated Balance Sheet - Capitalization - US GAAP *Includes $40m inter-company loan payable to Datatec which is eliminated in consolidation

  24. 50 0 -50 -100 -150 -200 -250 $m 2001 2002 2003 2004 2005 WESTCON GROUP • Net Cash / Debt Trend (30,701,555) (59,842,704) (76,872,694) (139,544,122) Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb Note: Figures in US dollars. Dollar figure shown for each year represents average (debt) cash balance for year

  25. WESTCON GROUP • Headcount by Region *Includes 24 persons made redundant based on restructuring plans commenced prior to February 2005

  26. WESTCON GROUP • Future Outlook • Business discipline and metrics will drive lower SGA % and continue to improve execution • International expansion will strengthen vendor partnerships while contributing to operating profit • Expect continued strong performance in Americas and improved profit contribution from reorganised European operations • FY 2006 is expected to deliver much improved profitability on the back of modest revenue growth targets

  27. LOGICALIS GROUP RESULTS FOR THE 12 MONTHSENDED 28 FEBRUARY 2005

  28. LOGICALIS GROUP • Highlights • First operating profit recorded in over three years • Revenues up 32% for continuing business (11% excluding STI acquisition) • Overall margins steady • Operating expenses tightly controlled • Acquisition of STI in the USA completed 1 September 2004 - $53m revenue contribution in FY 2005 • US producing much stronger performance - validates strategy of increasing scale • Launched focused services division in UK

  29. LOGICALIS GROUP • Financial Performance - Summary Trading in FY 2005 has produced results significantly better than FY 2004 Note: Includes Datatec level inter-company transactions which eliminate on Datatec consolidation

  30. North America South America United Kingdom Germany LOGICALIS GROUP • Revenue - Geographic Split (continuing operations) % of Revenue 4% 5% 25% 21% 2% 1% 69% 73% FY 2004 FY 2005 North America generated 73% of revenue

  31. LOGICALIS GROUP • Revenue - Segmental Split (continuing operations) Maintenance 8% Maintenance 7% ProfessionalServices 8% ManagedServices 8% ProfessionalServices 8% ManagedServices 6% Product 76% Product 79% FY 2004 FY 2005 The proportion of product revenue increased after the acquisition of STI(predominantly IBM technology product)

  32. HP Cisco Others EMC IBM LOGICALIS GROUP • Revenue - Product Vendor Mix % 3% 31% 25% 12% 12% 5% 4% 27% 48% 33% FY 2004 FY 2005 HP and Cisco remain dominant vendors with IBM becoming significant during the year Note: Continuing operations only

  33. 35 30 31.2 31.0 25 25.2 24.6 24.1 23.0 20 19.8 19.4 15 10 5 0 UK Total Germany North America South America % Year Ended Feb 2004 Feb 2005 LOGICALIS GROUP • Gross Margin % (continuing operations) 21.5 21.2 Gross Margins were steady year on year

  34. UK Germany North America South America Year Ended Feb 2004 Feb 2005 LOGICALIS GROUP • EBITDA ($000 - continuing operations) 12 10 8 6 4 2 0 -2 $000 Improvement in the UK with strong performance from the US

  35. LOGICALIS GROUP • Key Financial Measures Working capital remains effectively managed Note: The figures above exclude Australia and New Zealand (disposed in March 2004)

  36. LOGICALIS GROUP • Headcount by Region Note: The figures above exclude Australia and New Zealand (disposed in March 2004)

  37. LOGICALIS GROUP • Recent Important Wins

  38. LOGICALIS GROUP • Prospects • March 2005 acquisition of Notability Solutions will yield benefits • improves critical mass in UK • creates a better balanced business (systems and networks) • Acquisition of IBM Z-Series partner completes IBM range in US • UK services division gaining momentum • South American operations enjoying growth after difficult economic times • Negotiating debt facility to provide finance for further acquisitions • Markets remain challenging and competitive • Planning for continuing performance improvement

  39. ANALYSYS MASON GROUP RESULTS FOR THE 12 MONTHSENDED 28 FEBRUARY 2005

  40. ANALYSYS MASON GROUP • Background to the Merger • Mason Group Ltd is an IT & Telecoms consultancy and was acquired by Datatec in 1999 • Analysys Ltd comprises a strategic consultancy and research business operating in the Telecoms, IT & Media space • On August 7 a new company, Analysys Mason Group (AMG) was formed • On the same day: • The share capital of Mason was transferred from Datatec to AMG • Analysys Ltd was acquired by AMG for £12.8m • Management stake in AMG initially 15% (max of 24% in future) • Datatec International Ltd holds the remaining 85% of equity • Integration plans are well under way to take full advantage of the strategic and operational synergies within the new Group

  41. Technical, business and management consultingin telecomsand high-tech Contact centre,CRM andchange management consulting • Analysys Research • Telecoms research, publicationsand benchmarking • Analysys Consulting • Strategy consulting and economic modellingin the telecoms sector ANALYSYS MASON GROUP • Overview • The group offers a full spectrum of business advisory, management consultancy, research and implementation services • Trusted “independent” consultancy operating throughout the world with a direct presence in the UK, Ireland, France, Spain, Italy, USA and Singapore • Analysys Mason’s input has become an indispensable part of any major telecoms initiative • The group employs approximately 300 professional consultants and support staff

  42. FY 2004 FY 2005 ANALYSYS MASON GROUP • Revenue ($000) $52,058* $27,352 *Includes 7 months of Analysys and 12 months of Mason

  43. Mason - Technical Consulting Catalyst - CRM Analysys - Strategic Consulting Analysys - Research ANALYSYS MASON GROUP • % Revenue Streams 33% 12% 7% 48%

  44. FY 2004 FY 2005 ANALYSYS MASON GROUP • Gross Margin % 36.9% 30.1%

  45. ANALYSYS MASON GROUP • EBITDA ($000) $3,340 ($723) FY 2004 FY 2005

  46. ANALYSYS MASON GROUP • Recent Important Wins

  47. ANALYSYS MASON GROUP • Prospects • Continued operational efficiency improvements will drive higher profits • Scale benefits from combined marketing and customer acquisition • Telecom industry recovery particularly with Mobile (3G) operators • International scale and expansion

  48. QUESTIONS THANK YOU FOR ATTENDING

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