Slide 1: Data#3 2009 results presentation
For personal use only Data#3 2009 results presentation …our vision is to be an exceptional company John Grant – Managing Director Brem Hill – Chief Financial Officer September 2009
Slide 2: 2009 headlines
2009 headlines For personal use only measure 2008 trend 2009 revenue $363.7m + 46% $530.5m revenue under contract 57.0% up 59.5% internal expense as % gross margin $ 83.3% up 84.3% ebitda $12.9m + 12% $14.5m ebitda margin % 3.6% down 2.7% npat $9.1m + 8% $9.8m npat margin % 2.5% down 1.9% eps 58.9 c
Slide 3: 2009 headlines
2009 headlines For personal use only measure 2008 trend 2009 net assets $21.3m + 9% $23.3m debt nil steady nil people numbers (permanent staff) 460 + 2% 470 remuneration key management $4.4m - 5% $4.2m at risk remuneration for key management 37% down 32% activity outcome implemented new systems for
Slide 4: Strong organic growth
strong organic growth For personal use only Revenue EBITDA NPAT 600 16.0 10.0 500 14.0 9.0 8.0 12.0 400 7.0 10.0 6.0 300 8.0 5.0 6.0 4.0 200 3.0 4.0 2.0 100 2.0 1.0 0.0 0.0 0 2008 2005 2006 2007 2008 2009 2005 2006 2007 2009 2005 2006 2007 2008 2009 revenue up 46% to $530.5m ebitda up 12% npat up 8%
Slide 5: Solid investment returns
solid investment returns For personal use only eps and dps payout % share price 70 80% 6.00 60 78% 5.00 50 76% 74% 4.00 40 72% 3.00 30 70% 2.00 20 68% 10 66% 1.00 0 64% 0.00 2007 2005 2006 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 eps up 8% to 63.8 payout ratio stable share price u
Slide 6: Conservative balance sheet
conservative balance sheet For personal use only balance sheet item 2008 2009 Change $m $m $m Current assets • cash 17.0 28.0 + 11.0 • receivables 68.2 94.0 + 25.8 • inventories 6.6 6.1 - 0.5 Non-current assets • property and equipment 1.7 1.3 - 0.4 • deferred tax 1.2 1.2 nil • intangibles 5.3 5.4 +
Slide 7: Strong cash flows
strong cash flows For personal use only • operating activities 30 – net inflow of $19.6m 25 • investment activities 20 – outflow of $0.8m $m 15 • property & equipment $0.5m 10 • software assets $0.3m 5 • financing activities 0 2005 2006 2007 2008 2009 -5 – outflow of $7.8m • dividends $7.4m operatin
Slide 8: Licensing solutions very strong
licensing solutions very strong For personal use only Licensing revenue licensing solutions 300.00 • revenue up 104% to $292.8m 250.00 • Govt Head Agreement revenue $81m 200.00 • leader in all regions 150.00 • added 350 new customers 100.00 • acknowledgement by key partners – 50.00 Microsoft/Sophos/
Slide 9: Infrastructure solutions solid
infrastructure solutions solid For personal use only infrastructure solutions Infrastructure revenue • revenue up 13% to $197.6m 200.00 180.00 – enterprise $34.1m 160.00 140.00 – professional services $15.1m 120.00 100.00 – managed services $22.3m 80.00 60.00 – product solutions $126.1m 40.00 20.00
Slide 10: People solutions under pressure
people solutions under pressure For personal use only people solutions People Solns revenue • revenue declined 12% to $39.2m 45.00 40.00 – strong performance in Qld 35.00 – overall contribution to profit 30.00 25.00 declined by $1.5m 20.00 – contribution from Fingerprint 15.00 10.00 acquisition impr
Slide 11: Scale in all businesses
scale in all businesses 529 up from 495 For personal use only # people 14 23 74 69 managed accounts 28 licensing solutions enterprise solutions 114 86 professional services managed services 121 product solutions people solutions corporate ….our vision is to be an exceptional company
Slide 12: Building scale in all locations
building scale in all locations For personal use only # people 18 7 7 71 53 national qld 95 nsw vic 278 sa wa new caledonia ….our vision is to be an exceptional company
Slide 13: Customers in good shape
customers in good shape 97 For personal use only 96 95 94 93 95% met or exceeded 92 91 expectations 90 2006 2007 2008 2009 2.5 2.4 2.3 2.2 2.1 2 cross sell index down to 2.05 1.9 1.8 2006 2007 2008 2009 350 300 250 200 150 revenue from top 100 increased 100 50 significantly 0 2006 2007 2008 2009 ….o
Slide 14: Customers with CSI
customers with csi > 3 For personal use only ….our vision is to be an exceptional company
Slide 15: People in good shape
people in good shape For personal use only 500 400 300 permanents up 2% to 470 200 casuals up 71% to 60 100 0 contractors down 25% to 270 2006 2007 2008 2009 96% 94% 92% 90% 95% satisfied with 88% 86% data#3 84% 2006 2007 2008 2009 98% 96% 94% 92% 93% recommend 90% 88% data#3 to others 86% 2006 2007
Slide 16: Partner relationships in good shape
partner relationships in good shape For personal use only retained gold certification #6 in australia significant contract wins nationally increased business partner certifications #1 partner in q4 2009 increasing market penetration - WoG contract in Victoria first partner to included in the Hall of
Slide 17: FY2010 outlook
For personal use only fy2010 outlook ….our vision is to be an exceptional company
Slide 18: Challenging environment continues
challenging environment continues For personal use only • 2010 budgets set in context of 2009 difficulties customers • consolidating and want short term ROI • government investment under serious pressure • more stable but competitive for best skills labour • workloads and demands creating stress • c
Slide 19: Focus through strategy
focus through strategy For personal use only expertise, culture, performance & career plans; people satisfaction; opportunity to acquire the best solutions solutions framework and (pdo)2 ; winning in the market; extend offerings to access excellence efficiency & productivity; return on new systems’
Slide 20: Clarity in offerings
clarity in offerings For personal use only Area of specialisation Solution Set licensing solutions Licensing Solutions Software licensing Software asset management Infrastructure Solutions Strategic ICT and business analysis Network platforms Identity management Systems management Managed operating
Slide 21: Responsibility through structure
responsibility through structure Richard Anderson 12 years For personal use only Brad John Grant 27 years Colledge Terry Powell 31 years 14 years Data#3 Group Ian Johnston 2 years Laurence Baynham Areas of Brem Hill Corporate Services 15 years Specialisation 18 years Licensing Infrastructure People
Slide 22: Market positioning & growth
market positioning & growth Service SMX OKN DTL DTL approach For personal use only Corporate strategic consulting Operational business & change consulting Partner IT strategy and architecture Organic, partner Portfolio and program services Partner Systems integration & project management Partner for
Slide 23: Outlook
outlook For personal use only • market leadership; slower organic growth; spread software licensing • mid-market focus (<2000 seats); competitive on margins integrated • better than market organic growth via marketshare gain solutions • sales capability and enablement • solid revenue growth managed
Slide 24: Outlook
outlook For personal use only While we see many positive signs of recovery, we believe government and business IT budgets for 2010 will reflect the restraint implemented in 2009 and expect overall market conditions to remain tight. Our overall financial objective is to at least maintain the performa
Slide 25: Focus on managed services
For personal use only ….focus on managed services ….our vision is to be an exceptional company
Slide 26: Managed services provides...
managed services provides... For personal use only • Service Desk – full incident management through level 1, 2, 3 and escalation to 3rd parties including Data#3’s Essential Support Centre, IS, Outsourcing or a vendor • Maintenance Solutions – repackages and resells vendor maintenance agreements and
Slide 27: Why is managed services important
…why is managed services important For personal use only • growth opportunity as customers focus on their core business • long term annuity revenue • offers long term value to our customers • opportunity for other areas of specialisation i.e. cross sell ….our vision is to be an exceptional company
Slide 28: Historically solid growth with little focus
...historically solid growth with little focus For personal use only Managed Services revenue 25.00 20.00 15.00 10.00 5.00 0.00 2005 2006 2007 2008 2009 ….our vision is to be an exceptional company
Slide 29: Strategic positioning
….strategic positioning For personal use only • Customer segment – 200 – 2000 seat organisations – global companies looking for local partner – sub contract to Tier 1 outsourcer where niche or local skills required • Offering a flexible solution and flexible partner – fix first and worry about contr
Slide 30: Managed services solutions
managed services solutions Service SMX OKN DTL DTL approach For personal use only Corporate strategic consulting Operational business & change consulting Partner IT strategy and architecture Organic, partner Portfolio and program services Partner Systems integration & project management Partner for
Slide 31: Managed services customers
managed services customers For personal use only • Service desk – Sparq – (Ergon Energy + Energex) – Johnson & Johnson • Maintenance solutions – Allens Arthur Robinson (Cisco + HP) – WebCentral • Outsourcing services – QGC – Vale – Transport Infrastructure Development Corp (NSW) – Hutchison 3 retail
Slide 32: For personal use only
For personal use only © 2008 Data#3 Limited ABN 31 010 545 267 The material contained in this document, including all attachments, is confidential and the copyright Data#3 Limited. No part may be reproduced, used or distributed for any purpose other than the purpose for which it is issued, without t