Slide 1: FY16 Interim Results Briefing
For personal use only FY16 INTERIM RESULTS BRIEFING 22 FEBRUARY 2016
Slide 2: Contents
CONTENTS For personal use only 1H FY16 Summary 3 Our Business 6 1H FY16 Financial Performance 11 Acquisition 18 Strategy 20 FY16 Outlook 24 Q&A 26
Slide 3: 1H FY16 Summary
For personal use only 1H FY16 SUMMARY
Slide 4: Solid 1H with NPAT and EPS growth of 19%
4 For personal use only “We delivered a solid 1H with NPAT and EPS growth of 19%. The board is pleased to declare an interim dividend of 2.5 cps, an increase of 19% on the previous 1H”
Slide 5: Operational Achievements
5 OPERATIONAL ACHIEVEMENTS For personal use only • Continued strategic shift towards services • Continued investment in systems and people • Solid growth in public cloud solutions • Acquired controlling interest in Discovery Technology • Expanded Business Aspect nationally
Slide 6: Our Business
For personal use only OUR BUSINESS
Slide 7: For personal use only
For personal use only @eo@e000 TTT 1100+ | EMPLOYEES IN 2015 8 OFFICES Seen 3 INTEGRATION CENTRES 3 DATA CENTRES FOUNDED IN LISTED ON: 1977 ASK ne 870.5 MILLION °=r.. S88 EXPANDING BRAND DOLLARS IN REVENUE IN FY15
Slide 8: Our Solutions
8 OUR SOLUTIONS For personal use only We offer a range of technology solutions to help customers achieve their business objectives. These solutions are delivered using our Customer Solution Lifecycle (pdo)2
Slide 9: Recent Customer Example
RECENT CUSTOMER EXAMPLE For personal use only • National law firm with 1,000 plus staff • Business need to improve efficiency • Hybrid IT and mobility solution with voice, video, wireless and BYOD • Data#3 services – consulting, design and implementation • Our scalable and robust solution is deliver
Slide 10: Our Business – Strategic Partners
10 OUR BUSINESS – Strategic Partners For personal use only Top 10 worldwide partner, global awards, global advisory role Top 10 Asia Pacific partner, advisory board Top 10 worldwide partner, global advisory board with CEO Plus largest partner in Australia for several infrastructure and software supp
Slide 11: 1H FY16 Financial Performance
For personal use only 1H FY16 FINANCIAL PERFORMANCE
Slide 12: 1H FY16 Performance – Growth
12 1H FY16 PERFORMANCE – GROWTH For personal use only Revenue Up 12.6% $457.5M Product (on-premise solutions) Up 10.2% $330.9M Product (public cloud solutions) Up 36.1% $40.2M Services Up 12.9% $85.6M Gross Profit Up 9.6% $68.4M Product Up 12.6% $34.4M Services Up 6.7% $34.0M Gross margin Down 0.4 p
Slide 13: Strategic Shift in Business Mix
13 STRATEGIC SHIFT IN BUSINESS MIX For personal use only Product revenue ($M) Total revenue ($M) 500 375.2 500 457.5 400 324.8 338.6 332.7 329.7 371.1 436.0 406.2 399.1 406.4 300 400 378.0 200 300 100 200 0 1H11 1H12 1H13 1H14 1H15 1H16 100 0 1H11 1H12 1H13 1H14 1H15 1H16 Services revenue ($M) 100 8
Slide 14: Solid Growth in Gross Profit
14 SOLID GROWTH IN GROSS PROFIT For personal use only Total gross profit ($M) Services gross profit ($M) 80 50 68.4 59.4 61.6 62.4 40 31.9 34.0 54.9 57.5 27.6 29.2 28.8 60 30 24.4 20 40 10 20 0 1H11 1H12 1H13 1H14 1H15 1H16 0 1H11 1H12 1H13 1H14 1H15 1H16 Product gross profit ($M) Services gross mar
Slide 15: Expenses Reflect Growth Strategy
15 EXPENSES REFLECT GROWTH STRATEGY For personal use only Internal staff costs ($M) 60 49.2 51.4 50 43.8 44.7 46.7 40 36.8 30 20 10 Internal staff costs up 4.4% as headcount increased 0 taking into account the acquisition of Discovery 1H11 1H12 1H13 1H14 1H15 1H16 Technology on a consolidated basis.
Slide 16: Return to Growth
16 RETURN TO GROWTH For personal use only NPAT ($M) EPS (cents) 10 7.9 7.2 6 5.20 8 6.8 4.70 4.40 5 6 4.3 4 3.6 2.77 4 2.6 3 2.32 2 1.67 2 1 0 0 1H11 1H12 1H13 1H14 1H15 1H16 1H11 1H12 1H13 1H14 1H15 1H16 DPS (cents) 5 Solid growth in revenue and gross profit generated 3.80 4 3.45 3.45 steady growth
Slide 17: 1H FY16 Performance – Cashflow
17 1H FY16 PERFORMANCE – CASHFLOW For personal use only • Strong balance sheet with no borrowings • Cash flow ‘seasonality’ consistent with previous years • Average DSOS of 26 days - industry best practice and lower than PCP
Slide 18: Acquisition
For personal use only ACQUISITION
Slide 19: Discovery Technology
19 DISCOVERY TECHNOLOGY For personal use only • Developer of Wi-Fi content management and analytics application “CCeX” - Connected Customer eXperience • Initial 46.2% investment effective 1 August 2014, with additional 15.4% acquired on 3 July 2015 • Fully consolidated into Data#3’s 1H result, but h
Slide 20: Strategy
For personal use only STRATEGY
Slide 21: Underlying Fundamentals Influencing Sector Growth
21 UNDERLYING FUNDAMENTALS INFLUENCING SECTOR GROWTH For personal use only • Economic outlook is neutral and similar to FY15 • Education and health sectors will continue to grow • A rapid shift to consumption based and cloud services • Global Public Clouds will dominate • Security as the number one
Slide 22: Our Transition Strategy
22 OUR TRANSITION STRATEGY For personal use only Our transition strategy is to: 1. Grow and transition the core business towards services 2. Build specialist business units to address new market demands 3. Partner or acquire to address new market opportunity
Slide 23: Key Priorities in FY16
23 KEY PRIORITIES IN FY16 For personal use only 1. Establish new security practice 2. Expand partnerships 3. Accelerate public cloud opportunities 4. Deliver sales development programs to support the transition strategy 5. Leverage Business Aspect & Discovery Technology acquisitions
Slide 24: FY16 Outlook
For personal use only FY16 OUTLOOK
Slide 25: FY16 Outlook
25 FY16 OUTLOOK For personal use only We are confident that we have the right strategy to underpin sustainable growth in long term shareholder returns. Our first half performance and current pipeline provides a solid foundation to achieve our full year objective to improve on FY15’s result.
Slide 26: Q&A
For personal use only Q&A
Slide 27: Appendix – Financial Summary
27 APPENDIX 1 – FINANCIAL SUMMARY For personal use only
Slide 28: Disclaimer
28 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
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