Slide 1: FY22 Interim Results Briefing
FY22 Interim Results Briefing 17 February 2022 Presenters: Laurence Baynham, Chief Executive Officer & Managing Director Brem Hill, Chief Financial Officer 1
Slide 2: Agenda
Agenda Data#3 Overview 1H FY22 Operational Overview 1H FY22 Financial Performance Strategy & Outlook 2
Slide 3: 1H FY22 Financial Highlights
1H FY22 Financial Highlights Revenue Gross Profit NPBT $999.3M $105.4M $18.5M Up 16.6% Up 17.5% Up 33.0% NPAT Basic EPS Dividends per share $12.4M 8.01 cents 7.25 cents Up 31.7% Up 31.5% Up 31.8% Payout ratio of 90.5% 3
Slide 4: 1H FY22 Overview
1H FY22 Overview Direct staff headcount Revenue Public Cloud Revenue Recurring Revenue increase (mostly in services) $999M $467M 65% 10% Key awards + certifications • Strong 1H with positive contributions from all business units • Microsoft Azure Expert Managed Services Provider and regions despite
Slide 5: Digital Transformation
Digital Transformation Artificial Internet of Things 3D Printing Intelligence Foundation Layer Multi-cloud Modern Security Data & Analytics Connectivity Workplace 5
Slide 6: Integrated Solutions
Integrated Solutions Multi-cloud Modern Security Data & Analytics Connectivity Workplace Modern Data Centre Cloud Security Business Analytics IT-OT Networking Public Cloud Collaboration Customer Management Data Security and Privacy Software-Defined Networks Private Cloud End User Devices Internet of
Slide 7: Strategic partnerships with global leaders
#1 partner in Australia Strategic partnerships with global leaders Significant investment in technical capability and services #1 partner in Australia #1 partner in Australia 400+ other partnerships Top five partner in Australia 7
Slide 8: 1H FY22 Operational Overview
1H FY22 Operational Overview 8
Slide 9: FY22 External Factors
FY22 External Factors Australian IT Global chip COVID-19 market shortage disruption 9
Slide 10: 1H FY22 Operational Highlights
1H FY22 Operational Highlights Multi-cloud Growth Security Growth Services $467M in Public Cloud. Fastest growing solution. Strong growth in Consulting and Private Cloud growth. Combined D3 and BA offerings. Support Services. Customers have multiple clouds. Complements other solutions. Improving gro
Slide 11: Delivering the digital future in South Australia
Delivering the digital future in South Australia • Multi-year managed services contract with Department for Education • One of several contracts with the SA Government • Consolidates our national education leadership position • Selected to manage the server infrastructure due to deep expertise, serv
Slide 12: 1H FY22 Financial Performance
1H FY22 Financial Performance 12 12
Slide 13: Sustained revenue growth, boosted by cloud
Sustained revenue growth, boosted by cloud Total revenue ($M) Total Public Cloud revenue ($M) 999.3 1000 500 466.7 856.7 800 718.9 400 346.1 644.4 600 547.3 300 251.9 506.0 457.5 400 200 142.7 100 86.1 200 58.0 0 0 1H16 1H17 1H18 1H19 1H20 1H21 1H22 1H17 1H18 1H19 1H20 1H21 1H22 Strong revenue growt
Slide 14: Changing sales mix
Changing sales mix Revenue trend by functional area ($M) 1200 1H FY22 Change Business unit revenue vs. 1000 ($M) 1H FY21 Infrastructure Solutions 205.0 + 1.3% 800 Software Solutions 648.3 + 20.5% 600 Business Aspect Consulting 13.0 + 68.4% 400 Project Services 32.5 + 7.8% Support Services 69.2 + 47.
Slide 15: Gross margin and Gross profit
Gross margin and Gross profit Overall Gross Margin % varies with the changing revenue mix. Business unit 1H FY22 1H FY22 Relative Gross Margin % revenue revenue • Strong growth in software licensing and LOW MED HIGH ($M) growth public cloud revenues relative to services in recent years. Infrastructu
Slide 16: Sustained earnings growth
Sustained earnings growth NPBT ($M) Basic EPS (cents) 20 18.5 9 8.01 18 8 16 13.9 7 6.09 14 12.7 5.65 6 12 5 10 8.1 9.0 3.71 3.99 4 8 6.1 2.77 6 3 4.0 1.76 4 2 2 1 0 0 1H16 1H17 1H18 1H19 1H20 1H21 1H22 1H16 1H17 1H18 1H19 1H20 1H21 1H22 NPAT ($M) - excluding minority interests DPS (cents) 14 12.4 8
Slide 17: Statement of profit or loss
Statement of profit or loss • Revenue increased by 16.6% • Gross profit increased by 17.5% (from $89.7M to $105.4M) and total gross margin increased from 10.5% to 10.6% with changes in the revenue mix • Internal staff costs increased by 13.3% (from $66.7M to $75.5M) due to 10% headcount growth (pred
Slide 18: Steady improvement in operating leverage
Steady improvement in operating leverage Total gross profit ($M) Internal expenses (Staff & Operating costs $M) 120 120 105.4 100 100 88.6 89.7 82.3 80 74.0 71.8 80 68.4 62.4 60 60 Staff Operating 40 40 ICR (%) 20 20 0 0 1H15 1H16 1H17 1H18 1H19 1H20 1H21 1H22 1H15 1H16 1H17 1H18 1H19 1H20 1H21 1H22
Slide 19: Balance sheet
Balance sheet • Strong balance sheet with no borrowings • 4th quarter revenue spike inflates Trade receivables and Trade payables at 30 June • Inflated temporary cash surplus at 30 June • Average DSOS of 26.8 days (1H FY21 = 27.3 days) • Inventory slightly inflated due to supply chain delays, howeve
Slide 20: Working capital analysis
Working capital analysis Working capital components 700,000 • Short or negative working 600,000 capital cycles underpin self- funding business model 500,000 400,000 300,000 200,000 • Low inventory, allocated to Other current assets Inventory customer orders or projects 100,000 Current receivables •
Slide 21: Statement of cash flows
Statement of cash flows • Cash flow ‘seasonality’ consistent with previous years. • Timing differences in the collections from customers and payments to suppliers around 30 June generate large temporary cash surpluses at year-end, which are paid out in 1H . • 1H FY22 average cash balance $190M (1H F
Slide 22: Strategy & Outlook
Strategy & Outlook 22
Slide 23: Strategic Focus Areas
Strategic Focus Areas Customer Security Accelerating Experience Services Protecting our business Long term view, Completed rebuild of Market opportunity not transactional Managed Services Executive leadership Lifecycle approach Strong growth in Consulting & Support Services Go-to-market with Joint i
Slide 24: Outlook
Outlook Strong growth outlook for AU IT market with “While the strong trading biggest opportunity in software & services performance has continued at the start of the second half, given Services growth complements software and pandemic-related uncertainties infrastructure divisions, while improving
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
Appendix 26
Slide 27: Recent Awards
Recent Awards Microsoft OEM Trend Micro Aruba As a 2021 Employer Cisco Global Software Device Reseller Security Service Partner of Choice, HRD Partner of the Year Partner of the of the Year Magazine Partner of the Year Year Dell Dell Technologies Lenovo Technologies 2021 APJ ARN Partner Veeam Pro Ci
Slide 28: Disclaimer
Disclaimer 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. The distribution of thi
Slide 29: www.data3.com.au Linkedin.com/company/data3 Twitter.com/data3limited
www.data3.com.au 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited 29