Slide 1: FY17 Results Briefing
For personal use only FY17 RESULTS BRIEFING 23 AUGUST 2017
Slide 2: Contents
CONTENTS For personal use only FY17 Summary 3 Our Business 6 FY17 Financial Performance 10 Update on Acquisitions 18 FY18-20 Strategy 21 FY18 Outlook 24 Q&A 2
Slide 3: FY17 Summary
For personal use only FY17 SUMMARY
Slide 4: FY17 Summary
FY17 SUMMARY For personal use only “We continued to grow revenue and profit in the year, with revenue reaching $1.1 billion and a record EPS, 11.2% ahead of the pcp. The board is pleased to declare a full year dividend of 8.9 cps, an increase of 11.3% on pcp. FY17 total shareholder return was an out
Slide 5: FY17 Summary
FY17 SUMMARY For personal use only • Major milestones achieved in 2017: • 40 years in business • 20 years on ASX • Over $1B revenue • Record earnings & dividend • Sustained revenue & profit growth with increasing shift to services / annuity • 3 year business plan on track • Strong growth in the emer
Slide 6: Our Business
For personal use only OUR BUSINESS
Slide 7: For personal use only
For personal use only ©0000 , P9998 dnocstanr 8 OFFICES 3 INTEGRATION CENTRES 3 DATA CENTRES LISTED ON 4 oe ~| ALB BSK wl i997 isttniniininiininiainsianninnnienneen | 4,743 iS] 1.1B 2 © customers V ENTERPRISE AND PUBLIC SECTOR IN REVENUE IN FY17 :
Slide 8: Our Solutions
OUR SOLUTIONS For personal use only We work with our customers to enable their business objectives, utilising our technology solution categories: Delivered under our PDO2 Customer Solution Lifecycle methodology: Position, Plan, Design, Deploy, Operate, Optimise CONSULTING PROJECT SERVICES MANAGED SE
Slide 9: Our Focus on Industries
OUR FOCUS ON INDUSTRIES For personal use only
Slide 10: FY17 Financial Performance
For personal use only FY17 FINANCIAL PERFORMANCE
Slide 11: FY17 Performance – Sustained Growth
FY17 PERFORMANCE – SUSTAINED GROWTH For personal use only Revenue Up 11.7% $1,098.2M Product Up 12.4% $889.2M Services Up 9.5% $208.1M Cloud-based (included in Product & Services above) Up 71.3% $169.5M Other revenues $0.9M Gross Profit (excluding Other Revenue) Up 8.4% $158.9M Product Up 2.8% $72.5
Slide 12: Steady Growth in Revenue
STEADY GROWTH IN REVENUE For personal use only Product revenue ($M) Total revenue ($M) 1,000 889.2 1,200 1,098.2 791.3 983.2 800 689.1 639.6 697.3 709.2 1,000 870.5 811.4 771.0 833.6 600 800 400 600 200 400 0 200 FY12 FY13 FY14 FY15 FY16 FY17 0 FY12 FY13 FY14 FY15 FY16 FY17 Services revenue ($M) 240
Slide 13: Strategic Shift in Business Mix
STRATEGIC SHIFT IN BUSINESS MIX For personal use only Product gross profit ($M) Total gross profit ($M) 100 200 158.9 80 70.5 72.5 146.6 63.9 64.2 62.0 66.2 150 122.5 129.5 120.0 118.9 60 100 40 20 50 0 0 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 Services gross profit ($M) Product
Slide 14: Expenses Reflect Growth Strategy
EXPENSES REFLECT GROWTH STRATEGY For personal use only Internal staff costs ($M) 114.1 120 97.8 105.0 100 87.9 90.2 92.9 80 60 40 20 0 Internal staff costs up 8.6% with headcount relatively constant, but FY12 FY13 FY14 FY15 FY16 FY17 with continual rebalancing and increase in consulting staff. Opera
Slide 15: Sustained Earnings Growth
SUSTAINED EARNINGS GROWTH For personal use only NPAT ($M) EPS (cents) 15.4 12 15 13.7 13.8 9.99 12.1 10 8.88 8.98 10.6 7.88 8 6.89 10 7.5 6 4.89 5 4 2 0 0 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 DPS (cents) 10 8.00 8.90 Growth in revenue and gross profit delivered solid growth in
Slide 16: Solid Balance Sheet & Cashflow
SOLID BALANCE SHEET & CASHFLOW For personal use only • Strong balance sheet with no material debt • Any borrowings are ‘back-to-back’ with customer contracts • Cash flow ‘seasonality’ consistent with previous years • Very strong $51.3M operating cash inflow inflated the temporary surplus at year end
Slide 17: FY17 Performance – People
FY17 PERFORMANCE – PEOPLE For personal use only Employer of choice Number of people People satisfaction / 5 (% recommended by Data#3) 1, 177 4.27 96.3% Two independent Employer of Choice awards: 17
Slide 18: Update on Acquisitions
For personal use only UPDATE ON ACQUISITIONS
Slide 19: Business Aspect
BUSINESS ASPECT For personal use only • Powerful strategic positioning • Continued investment for national growth • Strong revenue growth not matched with profit growth at this early stage • Improved profit contribution expected in FY18 19
Slide 20: Discovery Technology
DISCOVERY TECHNOLOGY For personal use only • Controlling interest (61.6%) acquired in July 2015, and fully consolidated in FY16 & FY17 results • Software developer of Wi-Fi content management and analytics application “CCeX” • Operates independently of Data#3 • Significant turn-around in FY17 financ
Slide 21: FY18–20 Strategy
For personal use only FY18–20 STRATEGY
Slide 22: Market Fundamentals
MARKET FUNDAMENTALS For personal use only • Digital transformation is more prevalent in business strategy • Cyber security remains top priority • Consumption of digital technology will continue to shift from capital expenditure to operating expenditure • Industry consolidation is creating opportunit
Slide 23: Key Priorities in FY18
KEY PRIORITIES IN FY18 For personal use only 1. Accelerate Services and improve margin 2. Accelerate cloud and grow annuity revenue 3. Continue to adapt and enhance our solutions 4. Improve internal systems for productivity 23
Slide 24: FY18 Outlook
For personal use only FY18 OUTLOOK
Slide 25: FY18 Outlook
FY18 OUTLOOK For personal use only Our overall financial goal for FY18 is to continue to deliver earnings growth and returns to shareholders 25
Slide 26: Q&A
For personal use only Q&A
Slide 27: Appendix – Financial Summary
APPENDIX 1 – FINANCIAL SUMMARY For personal use only 27
Slide 28: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Data#3 Limited (“the Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. T
Slide 29: Contact Us
CONTACT US For personal use only Interested in how Data#3 can help? www.data3.com.au | 1300 23 28 23 Follow Us Twitter.com/Data3Limited Facebook.com/Data3Limited Linkedin.com/company/Data3 Youtube.com/Data3Limited 29