Slide 1: FY18 Results Briefing
For personal use only FY18 RESULTS BRIEFING 22nd AUGUST 2018
Slide 2: Contents
CONTENTS For personal use only FY18 Summary 3 Our Business 6 FY18 Financial Performance 11 Update on Acquisitions 19 FY19-21 Strategy 22 FY19 Outlook 25 Q&A 2
Slide 3: FY18 Summary
For personal use only FY18 SUMMARY
Slide 4: CEO quote on FY18 result
For personal use only “Despite continued growth in revenue and cloud-based business, and a strong second half performance, the full year earnings were impacted by a number of one-off events, primarily in the services segment. This reduced EPS by 8.4%, and the board declared a full year dividend of 8
Slide 5: FY18 Summary
FY18 SUMMARY For personal use only • Sustained revenue growth • Strong growth in the emerging cloud-based business • Earnings impacted by one-off events, both planned and unplanned • Record staff satisfaction and national Employer of Choice awards • Record customer satisfaction 5
Slide 6: Our Business
For personal use only OUR BUSINESS
Slide 7: For personal use only
9906 1100+ ae EMPLOYEES IN 2018 : 3 DATA CENTRES FOUNDED IN > : we ASX D : @ 17.89M inivicua products sold to custamers 1977 C u be a & 4,867 transacting customers ~ $1 2 B | LLIO N : & 60,950 service desk calls by customers VES ENUSININIG 2 3s 2,236 professional services projects For personal use o
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 SUPPO
Slide 9: Innovation and technology categories
For personal use only Foundation Innovation Cloud Blockchain Mobile Cognitive Services Security Internet of Things (IOT) Data#3 leadership Data and Analytics Artificial Intelligence Robotics 9
Slide 10: Innovation Examples
For personal use only Innovation Examples Blockchain AI Chatbot IOT/Data Analytics 10
Slide 11: FY18 Financial Performance
For personal use only FY18 FINANCIAL PERFORMANCE
Slide 12: FY18 Performance – Mixed Results
FY18 PERFORMANCE – MIXED RESULTS For personal use only Revenue Up 7.6% $1,181.4M Product Up 8.1% $961.2M Services Up 5.3% $219.1M Cloud-based (included in Product & Services above) Up 58.0% $267.8M Other revenues $1.1M Gross Profit (excluding Other Revenue) Up 0.8% $160.1M Product Up 6.7% $77.4M Ser
Slide 13: Growth in Revenue
GROWTH IN REVENUE For personal use only Product revenue ($M) Total revenue ($M) 1,200 1,181.4 1,200 1,098.2 1,000 889.2 961.2 983.2 1,000 800 697.3 709.2 791.3 771.0 833.6 870.5 639.6 800 600 600 400 400 200 0 200 FY13 FY14 FY15 FY16 FY17 FY18 0 FY13 FY14 FY15 FY16 FY17 FY18 Product revenue increase
Slide 14: Shift in Business Mix
SHIFT IN BUSINESS MIX For personal use only Product gross profit ($M) Total gross profit ($M) 100 200 77.4 158.9 160.1 80 70.5 72.5 146.6 64.2 62.0 66.2 150 122.5 118.9 129.5 60 100 40 20 50 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Product gross margin decreased slightly from
Slide 15: Expenses Optimised
EXPENSES OPTIMISED For personal use only Internal staff costs ($M) 150 114.1 117.6 97.8 105.0 90.2 92.9 100 50 0 Internal staff costs up 3.1%, with general market increases FY13 FY14 FY15 FY16 FY17 FY18 and headcount growth from 1,177 to 1,210 during the year (increase of 2.8%). Operating expenses (
Slide 16: Earnings Impacted by One-off Events
EARNINGS IMPACTED BY ONE-OFF EVENTS For personal use only NPAT ($M) EPS (cents) 15.4 12 15 13.8 14.1 9.99 12.1 10 8.98 9.14 10.6 7.88 8 6.89 10 7.5 6 4.89 5 4 2 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 DPS (cents) The decommissioning of Data#3’s Cloud platform reduced 10 8.00
Slide 17: Solid Balance Sheet & Cash Flow
SOLID BALANCE SHEET & CASH FLOW 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 • $8.2M operating cash inflow, with temporary surplus at year end slightly lower tha
Slide 18: FY18 Performance – People
FY18 PERFORMANCE – PEOPLE For personal use only Employer of choice Number of people People satisfaction / 5 (% recommended by Data#3) 1,210 4.38 95% Independent Employer of Choice awards: 18
Slide 19: Update on Acquisitions
For personal use only UPDATE ON ACQUISITIONS
Slide 20: Business Aspect
BUSINESS ASPECT For personal use only • Powerful strategic positioning • Structure fine-tuned following national growth, with focused service lines • Revenue growth not yet matched with profit growth • 1H loss largely recovered in 2H, with full year close to breakeven but below FY17. • Improved prof
Slide 21: Discovery Technology
DISCOVERY TECHNOLOGY For personal use only • Data#3 increased shareholding to 77.4% in July 2017; fully consolidated in FY17 & FY18 results • Software developer of Wi-Fi content management and analytics application “CCX” • Operates independently of Data#3 • Disappointing FY18 result with NBPT $1.7M
Slide 22: FY19–21 Strategy
For personal use only FY19–21 STRATEGY
Slide 23: Market Fundamentals
MARKET FUNDAMENTALS For personal use only • Digital transformation is a high priority in business strategy. • The overall IT market growth is fuelled by digital transformation. • Industry consolidation is creating opportunity. • Cyber security is our customers’ number one priority. • Data and analyt
Slide 24: Key Priorities in FY19
KEY PRIORITIES IN FY19 For personal use only 1. Services – improving margins 2. Digital Enablement – helping our customers succeed in their digital transformation 3. Customer Experience – unifying every customer touchpoint across our company to improve the overall customer experience 24
Slide 25: FY19 Outlook
For personal use only FY19 OUTLOOK
Slide 26: For personal use only
We see economic conditions in FY19 remaining steady, with For personal use only a positive IT industry growth outlook. We continue to see digital technologies leading business transformation in both the commercial and public sectors. We remain well positioned to enable this transformation and to cap
Slide 27: Q&A
For personal use only Q&A
Slide 28: Appendix – Financial Summary
APPENDIX 1 – FINANCIAL SUMMARY For personal use only 28
Slide 29: 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 30: For personal use only
Data*3 @ phone 1300 23 28 23 @ website www.data3.com.au © facebook.com/data3limited © twitter.com/dataSlimited ® linkedin.com/company/data3 © youtube.com/user/dataSlimited 30