Malcolm Rutherford

1
Financial Review of ResultsSeptember 2003

• Malcolm Rutherford
• CFO

2
Financial overview
3
Turnover by geography
4
Revenue by region
Excludes Express Data
5
Revenue trends Product in constant currency
6
Revenue trends Services in constant currency
7
Revenue trends Current new orders
Rolling 3 month average (excludes contract
revenue)
8
Total gross margin by region Like-for-like basis
Excludes Express Data
9
Operating profit by region

• Every region profitable (Exception US)
• Every region improved H1 performance (Exception
  SA)
• Profitable before Solutions and Services
  investment

10
Analysis of Solutions and Services investment
11
Movement in overheads
12
What is our total cost base?
13
Africa

• Numerous businesses in Africa
• 7.8m losses in Application Integration and
  Service Providers in H2 2003
• Loss making contracts have been completed and/or
  terminated
• Cost reduction plans of 3.2m actioned
• Dollar dominated pricing re-negotiated
• Marginal contracts provided for
• Network Integration business saw improved margins
  in product

14
Analysis of tax charge

• Year end assessed losses of M
• USA 260
• ROW 80
• 340

15
Operating exceptional items
16
Total cash by region
17
Operational cash flow
18
Analysing the cash flow
19
Days sales outstanding
20
Stock000
21
Trade creditors days outstanding
22
Summary

• Disappointing PL performance, but investment in
  future model continues
• Improved order momentum in Q4
• Good balance sheet has been improved
• Key cash flow indicators continue to improve

23
Dimension DataResults to 30th September 2003

• Jeremy Ord
• Executive Chairman

24
What We Do..A lifecycle of services

• PLAN
• Assess and select optimal IT architecture and
  technology
• Program and Project Management
• Risk Management

Plan

• BUILD
• Design effective solutions
• Procure technology infrastructure
• Configure, deploy, and integrate

ITInfrastructure
Support
Build

• SUPPORT
• Maintenance Support Services
• Performance Monitoring Reporting
• Managed Services Out-Tasking

25
Convergence is fuelling our vision
Application Network Solutions
NetworkIntegration
ApplicationIntegration
CustomerInteractiveSolutions
PlatformSolutions
SecuritySolutions
26
Our Target Clients
27
in Key Verticals
Financial Services 16 of revenue
Service Providers 24 of revenue
Public Sector
Manufacturing
Commercial
28
Market Conditions

• Highly competitive trading and price environment
• Continued pressure on IT spend in FY03 but
  evidence of stabilisation in demand and pricing
  environment in Q403
• Customers
• Increasingly want to deal with IT partners with
  global capabilities
• Still focused on ROI
• Demand for specialist global capabilities

29
Key Points

• Good progress in building Dimension Data brand
• evidenced by quality customer wins
• Continued progress in standardising offerings and
  execution capabilities globally
• Broader and stronger management team
• Profitability negatively impacted by US dollar
  weakness
• Disappointing performance in Africa in H2
• Increase in contribution from services
• Improvement in product margins but pressure on
  service margins due to lower volumes and over
  capacity

30
Key Points continued

• Turnaround plans in US, Asia and Germany
  successfully implemented
• H2 improvement in profitability in all regions
  except Africa
• Deterioration in performance in Africa being
  addressed
• Continued to address cost base
• Strong balance sheet key competitive advantage

31
North America

• North America has been key to global wins
• Turnaround plan delivering results
• Improved H2 performance and stabilisation in
  demand
• Returned to profitability in month of September
• 36 reduction in fixed overheads
• Continue to monitor trading conditions manage
  cost base
• Improved visibility in target markets

32
Africa

• Deterioration in performance in H2 after good H1
  caused by
• Lower volumes in Application Integration
  Service Provider business
• Non recurring consolidation costs in H2
• Execution difficulties on dollar based contracts
• Aggressive focus on returning business to
  profitability
• Management changes
• Reorganisation of sales force and improved focus
  of business units
• Continued emphasis on reduction of costs
• Anticipated that Q1 will return to profitability

33
Major Global Wins

• Allianz Services and technology supply contract
  across 74 countries over three years
• A leading global courier company Services and
  technology supply agreement covering 231
  countries over three years
• Airbus security and services contract across
  multiple countries with Airbus over three years
• Citigroup an Uptime services contract across 15
  countries in Asia and Australia 8m over 40
  months

34
Major Regional Wins

• State Bank of India implementation of a network
  to connect its associate banks, networking
  branches, ATMs and other electronic delivery
  channels - 29million over one year
• A major US based global organisation a CIS
  contract to build and operate a call centre -
  15m over one year
• Merck KG an Uptime and technology supply
  contract - 4m over three years
• Deutsche Wetterdienst an Uptime and technology
  supply contract with - 5m over three years
• Health Alert Network Solution A portal solution
  sold to five US states to date. Revenue to date
  5m
• Administrative Office of the United States
  Courts an outsourced Managed Services contract -
  10 million over five years

35
Outlook

• Signs in all regions that demand has stabilised
• Technology pricing pressures appear to have
  stabilised
• Traction in demand for solutions as evidenced by
  recent wins
• Dimension Data better placed to win market share
• Tighter strategic focus
• Significant operating leverage
• Improved
• offerings
• sales and delivery capabilities
• vendor relationships

36
Questions Answers
37
Appendices
38
Appendix 1 - Revenue by region (Annual)
39
Appendix 2 - Revenue by region (Sequential)
40
Appendix 3 - Total services revenue as a of
total revenue
41
Appendix 4 Headcount by region
42
Appendix 5 Severance and other associated costs
43
Appendix 6 Analysing the cash flow