DATATEC GROUP

1
DATATEC GROUP

• UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31
  AUGUST 2006

2
DATATEC GROUP
Performance Highlights

• Continuing strong revenue growth up 16
• Big increase in earnings per share to 15.65 US
  cents
• EBITDA profits up 32 to 52m
• Margin expansion at all levels
• Successful listing on AIM market of London Stock
  Exchange
• Full transferability of shares between the two
  exchanges
• All shares listed on both markets
• 100 market capitalisation on both markets

3
DATATEC GROUP
Revenues ( millions)
Revenues grew by 16
4
DATATEC GROUP
Revenues by Region
Europe 36
Asia 7
South America 2
South Africa ME 3
North America 52
North America remains dominant
5
DATATEC GROUP
Gross Profit ( millions)
6
DATATEC GROUP
EBITDA ( millions)
7
DATATEC GROUP
Total Headline Earnings Per Share (US cents)
8
DATATEC GROUP
H1 FY2007 Cash Generation ( millions)
Net Cash ( millions)

• First dividend payment
• Primary uses of cash
• one-off working capital investments
• acquisitions
• Strong closing next cash position

9
DATATEC GROUP
Segmental Analysis
EBITDA
Revenue
Gross Profit
AMG
Logicalis
3
36
AMG
Logicalis
6
Logicalis
22
20
MEA
MEA
MEA
4
2
3
Westcon
Westcon
75
54
Westcon
69
10
WESTCON GROUP
11
WESTCON GROUP
Highlights

• Interim revenues up 10 to 1.26bn with increases
  in all geographies
• Gross margin stable at 8.3
• Operating expenses trimmed back to 5.2 of
  revenue from 5.8
• EBITDA margins grew to 3.0 from 2.7
• Ronco acquisition in H1 has expanded Nortel
  convergence offerings
• Big improvement in Europes financial
  contribution

12
WESTCON GROUP
Financial Performance Summary
( millions) Aug 2005 Aug 2006 Growth
Sales 1,127 1,250 11
Gross Profit 96 103 7
Gross Margin 8.5 8.3
Operating Costs 65 66 2
Operating Margin 5.8 5.2
EBITDA 31 38 23
EBITDA 2.7 3.0
Dep Amort 5 5
DA 0.4 0.4
Interest Expense, Net 3 4
Interest Expense 0.2 0.3
Pre-Tax Income 23 28 22
Pre-Tax 2.1 2.3
Includes once-off benefits
Financial Performance summary includes
inter-group adjustments
13
WESTCON GROUP
Revenue Trend Six Months
1,300
1,200
1,100
1,000
millions
1,259
1,163
1,140
900
1,013
800
700
Sep-Feb
Mar-Aug
Sep-Feb
Mar-Aug
2005
2006
2006
2007
14
WESTCON GROUP
Revenue by Geography - of Revenue
Europe
36
Asia Pac
8
56
Americas
H1 FY 2006
H1 FY 2007
Consistent Geographic results
15
WESTCON GROUP
Revenue Product Vendor Mix
Other
Other
Security
Nortel
15
Security
14
Nortel
8
10
6
12
Avaya
Avaya
9
8
Cisco
59
H1 FY 2006
H1 FY 2007
Cisco remains dominant vendor
16
WESTCON GROUP
Gross Margin
12.0
9.4
10.0
9.1
8.5
8.5
8.4
8.3
7.8
8.0
7.0
6.0
4.0
2.0
0.0
Americas
Europe
Asia Pacific
Total
Including once-off benefits
17
WESTCON GROUP
Operating Expenses
68
6.6
6.4
6.2
6.0
66
5.8
5.6
Operating Expense
5.4
64
millions
5.2
5.0
66
4.8
64
62
4.6
63
65
4.4
4.2
60
4.0
Sep-Feb
Mar-Aug
Sep-Feb
Mar-Aug
2005
2006
2006
2007
Operating expenses relatively constant despite
high revenue growth
18
WESTCON GROUP
EBITDA (000s)
EBITDA increases across all geographic regions.
45.0
38.0
40.0
35.0
30.8
30.0
26.7
24.7
25.0
20.0
15.0
9.1
10.0
4.2
5.0
2.4
1.7
0.0
Americas
Europe
Asia Pacific
Total
Note Americas results include US non-operating
subsidiaries
19
WESTCON GROUP
Consolidated Balance Sheet Working Capital US
GAAP
( millions) Aug 2005 Feb 2006 Aug 2006
Accounts Receivable 325 321 370
DSO (days) 55 51 56
Inventory 183 189 198
Inventory Turns 10.7x 11.2x 11.2x
Accounts Payable 324 333 360
DPO (days) 60 58 59
Current Ratio 1.5 1.6 1.6
Note Ratios based on trailing twelve month
results
20
WESTCON GROUP
Consolidated Balance Sheet Capitalisation US
GAAP
( millions)
Aug 2005
Feb 2006
Aug 2006
Cash
135
166
156
Working Capital Lines
86


67


79


Notes payable
-


40


40


Net Cash
9


23


1


Equity
287


284


306


Debt to Capitalization
0.31
0.33
0.34
Liabilities to TNW
1.69
1.85
1.88
Includes inter-company loan payable to Datatec
which is eliminated in consolidation
21
WESTCON GROUP
Net Cash / Debt Trend ( millions)
22
WESTCON GROUP
Headcount by Region
Region Aug 2005 Feb 2006 Aug 2006
Americas 435 451 476
Europe 426 454 457
Asia-Pacific 133 141 154
Total 994 1,046 1,087
23
WESTCON GROUP
Future Outlook

• Cautious optimism with continued organic growth
  for the second half
• Increasing the focus on acquisition driven growth
• Enhanced logistics in North America should drive
  efficiency gains
• Further improvements in margins and profitability
  expected in Europe

24
LOGICALIS GROUP
25
LOGICALIS GROUP
Highlights

• Revenues up 39 to 343m
• Organic growth of 11
• Gross margin maintained at 20
• EBITDA profits up 59 to 11.8m
• Continued growth in profitability in both the UK
  and US operations
• One acquisition completed during H1 FY 2007
• Offices opened in Chile and Peru
• Acquisition of IBM partner completed 1 September
  in US

26
LOGICALIS GROUP
Financial Performance Summary
( millions) Aug 2005 Aug 2006 Growth
Revenue 247,278 342,632 39
Gross Profit 49,665 68,822 39
Gross Margin 20.1 20.1
Operating Expenses 42,223 56,980 35
Opex 17.1 16.6
EBITDA 7,442 11,842 59
As of Revenue 3.0 3.5
Operating Profit 5,182 8,550 65
As of Revenue 2.1 2.5
Increased scale has produced stronger results in
FY 2007
Notes Includes Datatec level inter-company
transactions which eliminate on Datatec
consolidation
27
LOGICALIS GROUP
Revenue Geographic Split as of Revenue
North America generated 62 of revenue
28
LOGICALIS GROUP
Revenue Segmental Split
Proportion of product in sales mix relatively
constant
29
LOGICALIS GROUP
Revenue Product Vendor Mix
Others
H1 FY 2006
H1 FY 2007
IBM remains most significant vendor partner
30
LOGICALIS GROUP
Gross Margin
Overall Gross margin steady
31
LOGICALIS GROUP
EBITDA ( millions)
Continued growth in profitability in UK and US
Note EBITDA pre IFRS 2 charges and head office
costs
32
LOGICALIS GROUP
Key Financial Measures
(000) Aug 2005 Feb 2006 Aug 2006
Deferred Revenue 21,580 15,933 17,773
Inventory 10,349 14,536 17,216
Inventory Days (Excluding Spares Stock) 11 14 12
Accounts Receivable 75,862 87,468 115,555
DSO Days 54 47 53
Accounts Payable 66,658 97,145 90,480
DPO Days 76 82 75
Net Cash 30,913 26,605 (2,010)
Net cash reduction reflects acquisitive growth
resulting in increased working capital
requirements
33
LOGICALIS GROUP
Headcount by Region
Region Aug 2005 Feb 2006 Aug 2006
North America 385 441 487
South America 186 201 230
Europe 295 343 400
Total 866 985 1,117
Increase predominantly due to acquisitions and
growth in scale
34
LOGICALIS GROUP
Recent Important Wins
US Finance IP comms solution, services and 1.9m managed services
US Local Govt Datacenter build out 0.4m
US Technology Three year network managed 0.1m Services ( per year)
UK Manufacturing Server upgrade and storage solution 3.5m following SAP implementation
UK University Consultancy, project definition and 875k supply of initial network upgrade
UK Finance Cross sell of a computing/ 350k application integration project
UK Construction Five year managed services of 4.9m WAN/LAN/IPT and Data centre
South America Telecoms Regional deal for Cisco MPLS 3.0m plus two year maintenance
South America Finance Outsourcing contract 1.2m to manage telecom infrastructure
35
LOGICALIS GROUP
Future Outlook

• Optimistic about second half trading conditions
• Cisco Advanced Technologies still growing
  strongly
• Continuing to focus on growing the services mix
• Continue to evaluate acquisition opportunities
• Scale should drive further operating efficiencies
• Ian Cook CEO, Logicalis European Operations
  to succeed Jens Montanana in his capacity as
  Logicalis Group CEO from 1 March 2007 Jens to
  continue duties as Chairman of this division

36
ANALYSYS MASON GROUP
37
ANALYSYS MASON GROUP
Overview

• 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 Masons input has become an
  indispensable part of any major telecoms
  initiative
• The group now employs approximately 330
  professional consultants and support staff

38
ANALYSYS MASON GROUP
Highlights

• Non-UK international revenues now contribute 48
  of total
• Modest revenue growth of 2 despite completion
  last year of large wireless network rollout
• Improvements in gross and net profits
• Debt free balance sheet with 9m of cash

39
ANALYSYS MASON GROUP
Financial Performance Summary
( millions) Aug 2005 Aug 2006 Variance
Revenue 30,072 30,703 2
Gross Profit 10,331 11,201 8
Gross Margin 34.4 36.5
EBITDA 3,263 3,227 -1
As of Revenue 10.9 10.5
PBT 2,685 2,709 1
As of Revenue 8.9 8.8
40
ANALYSYS MASON GROUP
Revenue Geographic Split as of Revenue
Europe
Europe
18
Rest of World
14
Rest of World
USA
1
UK
UK
USA
67
H1 FY 2006
H1 FY 2007
41
ANALYSYS MASON GROUP
Revenue Segmental Split
H1 FY 2007
H1 FY 2006
42
ANALYSYS MASON GROUP
Gross Margin
60
55
44.7
50
41.6
45
40.1
36.5
40
34.4
31.4
35
30.6
28.7
30
25
17.3
20
10.7
15
10
5
0
Mason
Analysys Consulting
Analysys Research
Catalyst
Total

43
ANALYSYS MASON GROUP
EBITDA (000s)
3,500
3,263
3,227
3,000
2,465
2,500
2,000
1,694
1,500
1,239
1,110
1,000
370
500
162
157
0
-86
-500
Mason
ACL
ARL
Catalyst
Total
000
44
ANALYSYS MASON GROUP
Headcount by Division
Region Aug 2005 Feb 2006 Aug 2006
Mason 84 74 78
Analysys Consulting 76 80 83
Analysys Research 26 35 36
Catalyst 21 21 20
AMG Support Services (FTEs) 47 47 48
Full Time Headcount 254 257 265
Associates 62 59 70
Total 316 316 335
45
ANALYSYS MASON GROUP
Recent Important Wins
Analysys Consulting and Research Mason and Catalyst
Middle East operator Fixed and mobile LRIC modelling - 900k UK Department of Health Ambulance radio programme 3.4m
Turkish operator Cost modelling project - 700k UK Mobile Operator Mobile network projects 3.2m
Leading investment bank Due diligence of cable TV 3G business plans - 240k Transport for London IT and telecommunications projects 770k
Italian operator Development of mobile cost model - 375k Norway Ministry of Justice Tetra network procurement 450k
North African operator Pricing and tariff advice - 290k Sri Lanka Core network roadmap strategy - 290k
Joint Joint
Morocco operator 3G license bid support - 500K Morocco operator 3G license bid support - 500K
UK Development Agency Procurement advice re FibreSpeed - 405k UK Development Agency Procurement advice re FibreSpeed - 405k
Asian Development Authority Mobile interconnect framework review - 570K Asian Development Authority Mobile interconnect framework review - 570K
46
ANALYSYS MASON GROUP
Future Outlook

• Building critical mass in key geographies and
  content areas, e.g.
• US, Asia
• Convergence, digital media research
• Telecoms industry is still forecast to grow
  steadily, market drivers include
• Market liberalisation / privatisation
• Fixed/mobile convergence and quadruple play
• Development of IPTV and VOIP services
• Telecoms consultancy is also forecast to maintain
  growth levels, key drivers being
• Geographic diversification
• Operations and outsourcing
• Business and strategic planning
• NGN, Broadband and VOIP services

47
DATATEC GROUP
48
DATATEC GROUP
Market Conditions

• Outlook for the global IT industry remains
  favourable
• US market continues to be robust
• Europe inches forward
• Rest of the world including emerging markets
  showing strong growth

49
DATATEC GROUP
Prospects

• Expecting continued revenue growth and profit
  margin expansion
• Improving contribution from Europe
• Considering a number of strategic acquisitions
• Plans to increase geographic footprint and extend
  services offerings

50
QUESTIONS