Slide 1: Data#3 (DTL) 1H FY12 performance
For personal use only # Data 3 (DTL) 1H FY12 performance 20th February 2011 1
Slide 2: Strong top line growth in a challenging market
Strong top line growth in a challenging market For personal use only • Total revenue up 15% to $436M • Product revenue up 15.5% to $375M • Services revenue up 14.5% to $59M • Sales gross margin down 0.9% to13.7% due to shift in sales mix • Expenses up 13% with continuing investment • Net profit afte
Slide 3: Our business
For personal use only Our business 3 6
Slide 4: Business areas of specialisation
Volume software licensing and asset For personal use only management Software Licensing Infrastructure Workforce design and recruitment & deployment contracting projects People Integrated Solutions Solutions Customer Outsourced/Cloud Managed Product Lifecycle infrastructure Services Solutions hardwa
Slide 5: Our national footprint
Our national footprint For personal use only Brisbane Head Office Warehouse & Configuration Centre Perth Office Canberra Office Adelaide Office Sydney Office Warehouse & Melbourne Configuration Centre Office Datacentre Warehouse & Configuration Centre 5 8
Slide 6: Strong revenue growth, ahead of market growth
Strong revenue growth, ahead of market growth For personal use only Total revenue ($M) Product revenue ($M) 600 600 436 378 375 400 307 400 325 267 230 191 200 136 157 200 103 119 0 0 1H07 1H08 1H09 1H10 1H11 1H12 1H07 1H08 1H09 1H10 1H11 1H12 Services revenue ($M) 100 • Solid growth overall well ah
Slide 7: Earnings ahead of long run trend
Earnings ahead of long run trend For personal use only NPAT ($M) EPS (cents) 10 6 5.2 7.9 5 4.7 8 7.2 4.7 4 3.1 6 4.0 2.6 3.7 3 2.4 4 3.0 2.0 2 2 1 0 0 1H07 1H08 1H09 1H10 1H11 1H12 1H07 1H08 1H09 1H10 1H11 1H12 DPS (cents) 4 3.80 • Earnings ahead of long run trend 3.45 but down on exceptionally hig
Slide 8: Strong balance sheet and cash flow
Strong balance sheet and cash flow For personal use only Net operating cash flow ($M) 80.0 66.8 59.6 60.0 40.0 20.0 0.0 • Strong balance sheet -20.0 1H '10 2H '10 1H '11 2H '11 1H '12 -21.9 with no material debt -40.0 -37.1 -60.0 -54.8 • Cash flow ‘seasonality’ Cash ($M) in line with trend 64.3 • Av
Slide 9: Cost structure reflects investment
Cost structure reflects investment For personal use only Internal cost ratio (%) 89 87.5 87 85.3 85.4 85.1 • Internal cost ratio [internal staff 85 & operating expenses as % of 85.2 gross profit] increased on pcp 83 • Opex investment flat 81 • People numbers up 17% 81.3 • People investment up 19% 79
Slide 10: Performance of the specialist businesses
For personal use only Performance of the specialist businesses 10 13
Slide 11: Software Licensing – continuing track record of growth
Software Licensing – continuing track record of growth For personal use only Revenue ($M) 300 273.9 250 219.9 • Total revenue up 24.5% to $273.9M • Particularly strong contribution from 200 179.9 State Govt, large commercial organisations and Pacific Islands 150 • Decision on new Federal 116.5 Gover
Slide 12: Infrastructure Solutions – minimal growth as project investment declines
Infrastructure Solutions – minimal growth as project investment declines For personal use only Revenue ($M) 160 138.0 139.1 • Revenue flat at $139.1M 140 • Products down 2.7% to $102.6M 120 111.0 • Project services down 8.3% to 100 $15.2M 91.9 • Managed services up 33.3% to 80 73.6 $21.3M 68.0 • Str
Slide 13: People Solutions – growth continues in patchy market
People Solutions – growth continues in patchy market For personal use only Revenue ($M) 25 20.8 21.1 21.0 20 18.4 17.6 • Total revenue up 15.2% to 15.3 15 $21.2M • Permanent placement revenues up 10 • Contractor numbers up 10% • Placement rate firm at 34% 5 0 1H07 1H08 1H09 1H10 1H11 1H12 13 16
Slide 14: All strategic initiatives on track
All strategic initiatives on track For personal use only • Strong customer acceptance of Strategic Consulting practice • Strong customer acceptance of Workforce Productivity practice • Trusted Cloud for Infrastructure as a Service built out and being taken to market • New strategic supplier relation
Slide 15: 1H summary
For personal use only 1H summary 15 13
Slide 16: 1H summary
1H summary For personal use only • Strong top line growth in difficult market • Very strong performance from 3/5 areas of specialisation • Decline in project revenues was not anticipated – driven by delay of major investment projects • NSW market particularly challenging • Continuing program of inve
Slide 17: 2H FY12
For personal use only 2H FY12 17 24
Slide 18: Addressing the challenging market
Addressing the challenging market For personal use only • Aligning costs with market opportunity • Continuing investment to drive productivity • Increasing demand generation activities • Turning more of our good people toward the customer • Improving the sales process 18 14
Slide 19: Tender flow and win rate improved since AGM
Tender flow and win rate improved since AGM For personal use only Full Full Oct 1H Year Year AGM 2012 2010 2011 Submitted bids 357 345 147 207 Decided bids 271 238 32 69 Won 126 119 18 42 % won 46% 50% 56% 61% Undecided 115 138 19
Slide 20: Market outlook entering 2H 2012
Market outlook entering 2H 2012 For personal use only 2H outlook expectations Growth in software licensing in line with market Seasonality biased to 1H Some improvement in product procurement Reviewing investment & resourcing levels Major Qld Govt contract comes to market Remaining negative in integ
Slide 21: 2H12 outlook summary
2H12 outlook summary For personal use only “We see the uncertain conditions that marked the first half continuing at least for the remainder of this financial year. Under these circumstances we are not in a position to provide guidance for the full year and will keep shareholders informed” 21 32
Slide 22: Data#3 remains well positioned to perform ahead of the market
Data#3 remains well positioned to perform ahead of the market For personal use only • Global uncertainty still playing out • IT services market in flux but still has strong underlying fundamentals • Data#3 operates in large markets ($22.5B in 2011) • Data#3 has strong and interdependent relationship
Slide 23: Q&A
For personal use only Q&A 23 24
Slide 24: Appendix – Financial summary
Appendix 1 – Financial summary For personal use only 24 34
Slide 25: 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 26: For personal use only
For personal use only 26