Slide 1: FY24 Results Briefing
For personal use only FY24 Results Briefing Presented by Brad Colledge Cherie O’Riordan CEO CFO 1
Slide 2: About Data#3
• ASX 200 listed IT Services and Solutions provider in Australia and the Pacific Islands For personal use only • Our vision is to harness the power of people and technology for a better future About Data#3 • 47 years evolving solutions and services to enable customers' success, combined with world-l
Slide 3: Agenda
Agenda For personal use only FY24 Highlights FY24 Financial Performance Sector Trends and AI FY25 Strategy & Outlook Q&A 3
Slide 4: FY24 Highlights
4 For personal use only FY24 Highlights
Slide 5: FY24 Financial Highlights
FY24 Financial Highlights For personal use only NPBT EBIT Gross Sales $62.1M $53.5M $2.8B Up 16.6% Up 5.0% Up 7.6% Gross Profit Basic EPS Dividends per share $270.1M 28.0 cents 25.5 cents Up 7.8% Up 16.9% Up 16.4% Payout ratio of 91.1% 5
Slide 6: FY24 Overview
FY24 Overview Gross Sales Gross Sales growth of Recurring People 7.6% Gross Sales For personal use only $2.8B in line with IT spend forecasts1 67% 1,400+ Key awards + certifications • In line with strategy, strong sales growth in Managed and Maintenance Services and Software • HRD Employer of Choice
Slide 7: FY24 Operational Highlights
FY24 Operational Highlights For personal use only Services Multi-cloud Growth Security Growth AI Accelerating Continued moderate growth in Services should improve future Fastest growing solution Cloud is now ubiquitous in our and top customer priority profitability customer solutions ISO 27001 certi
Slide 8: Digital Transformation
Digital Transformation For personal use only Artificial Internet of Things 3D Printing Intelligence Foundation Layer Multi-cloud Modern Security Data & Analytics Connectivity Workplace 8
Slide 9: Strategic partnerships
For personal use only Top five partner #1 partner in Australia in Australia Strategic partnerships Significant investment in 400+ other partnerships with global leaders technical capability and with emerging vendors certifications 9
Slide 10: Our FY24 Awards
10 For personal use only Our FY24 Awards
Slide 11: FY24 Financial Performance
For personal use only FY24 Financial Performance 11
Slide 12: Sustained growth in gross sales
Sustained growth in gross sales For personal use only Total Gross Sales ($M) Gross sales CAGR of 14.3% 1 fuelled by software licensing, multi-cloud 3000 2,764.1 solutions and services. 2,564.6 2500 2,193.0 1,956.2 2000 1,625.9 Strong customer spend in higher 1500 1,415.6 growth education, health and
Slide 13: Sustained earnings growth
Sustained earnings growth NPBT ($M) Basic EPS (cents) For personal use only 70 30 28.00 62.1 60 53.2 23.96 25 50 44.1 19.61 20 16.51 36.9 15.35 40 34.1 26.6 15 11.76 30 10 20 10 5 0 0 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 NPAT ($M) - excluding minority interests DPS (cents) 25.
Slide 14: Change in revenue presentation
Change in revenue presentation Starting in FY24, certain revenues will be presented Growth For personal use only $M FY24 FY23 on a net basis. % • A review has determined that Data#3 is acting as an Gross Sales* 2,754.2 2,560.7 7.6% agent in respect of software licensing and vendor delivered maintena
Slide 15: Sales by functional area FY24
Sales by functional area FY24 Change Relative Gross Business unit vs. Gross Sales FY23 Margin % Gross Sales trend by functional area ($M) ($M) For personal use only 3000 Business Aspect MED - 31.4 - 5.5% Consulting HIGH 2500 Project Services 79.0 + 6.0% MED 2000 LOW - Maintenance Services 158.5 + 26
Slide 16: Gross margin and Gross profit
Gross margin and Gross profit Growth Overall Gross Margin % varies with changing sales mix. $M FY24 FY23 % For personal use only • Infrastructure Solutions growth constrained by delayed Product Gross Sales 2,378.3 2,217.7 7.2% decision making by customers and consumption of goods ordered ahead of re
Slide 17: Steady improvement in operating leverage
Steady improvement in operating leverage Total gross profit ($M) & Total gross margin (%) Internal expenses (Staff & Operating costs $M) For personal use only 300 25.0% 250 95.0% 270.1 250.7 250 90.0% 218.2 200 20.0% 188.0 194.7 200 85.0% 173.9 150 150 15.0% 80.0% 100 100 75.0% 10.0% 50 50 70.0% 0 5
Slide 18: Statement of profit or loss
Statement of profit or loss • Interest income $9.7M vs $3.5M predominately due to higher interest rates earned on deposits • Internal staff costs increased by 7.6% (from $176.9 For personal use only million to $190.3 million) reflecting 2% headcount growth (predominantly in billable Services and Inf
Slide 19: Balance sheet
Balance sheet • Strong balance sheet with no borrowings For personal use only • Q4 sales spike in line with normal customer spend patterns inflated Trade receivables and Trade payables at year end • As in prior periods, this created a large temporary cash surplus at 30 June but lower than PCP due to
Slide 20: Working capital analysis
Working capital analysis Efficient working capital Working capital components Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 model. $870M For personal use only $770M Short or negative working capital cycles underpin self- $670M funding of business. $570M $470M $370M Inv
Slide 21: Statement of cash flows
• Cash flow ‘seasonality’ consistent with previous years • Timing differences in collections from customers and Statement of cash flows payments to suppliers around 30 June generate temporary cash surpluses For personal use only • FY23 higher than normal cash inflow due to more customers paying pre
Slide 22: Sector Trends and AI
For personal use only Sector Trends and AI 22
Slide 23: 2024 Global Technology Industry Trends
2024 Global Technology Industry Trends1 For personal use only IT Industry Growth Global spend on IT expected Software Devices to grow 7.5% in 2024 Organisations to invest in 13% growth expected 5% growth expected planning and use of GenAI > US$1Trillion globally (decrease of 6.5% in 2023) Communicat
Slide 24: Data#3's Generative AI Journey – one year on
Data#3’s Generative AI Journey – one year on For personal use only Healthcare Customer Solution example Microsoft CoPilot • Business Aspect consulting engagement • Copilot licences • Invited to Microsoft Early Adopter Program • Copilot Readiness Assessment • Copilot Pilot support • Offering Developm
Slide 25: Data#3's Generative AI Journey – one year on
Data#3’s Generative AI Journey – one year on For personal use only Technology Information Organisational Platform Governance Change Software, Device, and Security Management and Multi-cloud 25
Slide 26: FY25 Strategy and Outlook
For personal use only FY25 Strategy and Outlook 26
Slide 27: Strategic Framework
Strategic Remarkable Framework People For personal use only Innovative Customer Exceptional Solutions Success Performance Operational Excellence 27
Slide 28: Integrated Solutions embedded with AI
Integrated Solutions embedded with AI For personal use only Multi-cloud Modern Security Data & Connectivity Workplace Analytics Modern Data Centre Cloud Security IT-OT Networking Public Cloud Collaboration Business Analytics Data Security and Privacy Software-Defined Networks Private Cloud End User
Slide 29: The Opportunity
The Opportunity For personal use only 91%2 73%3 $500Bn1 facing the challenge of becoming a “truly in global AI-driven building a multi-cloud sustainable and responsible infrastructure by 2027 strategy business” is a top priority 73%4 Millions5 expect a cyber security devices not ready for incident i
Slide 30: For personal use only
30 For personal use only
Slide 31: Data#3 Competitive Advantages
Data#3 Competitive Advantages For personal use only Our People Our Partners Our Expertise Our Innovation Ability to attract and retain Partnerships with leading Expertise and breadth of At the forefront of industry the best people global vendors solutions across change the customer lifecycle Our Agi
Slide 32: Long term customer relationships
Long term customer relationships For personal use only 1800 1600 1400 • Number of customers by length of tenure 1200 over a 13-year period 1000 • Average spend increases significantly over 800 time 600 • Over 300 customers with tenure of over 13 400 years a testament to Data#3’s customer 200 service
Slide 33: Increasing customer engagement
Increasing customer engagement For personal use only Average Sales & Average Gross Profit per Customer • Average sales and GP per customer group has increased as we extend engagement 1,600,000 200,000 across our portfolio of solutions, including 1,400,000 180,000 160,000 higher GP services. 1,200,00
Slide 34: Outlook
Outlook For personal use only Services Growth Multi-cloud and Infrastructure Security Growth Growth Accelerated by Generative AI plus continued interest in Continued growth in Continued delayed decision Managed Services across multi-cloud solutions and making based on economic Devices, the Network a
Slide 35: For personal use only
For personal use only Data#3 is well placed to leverage the AI opportunity and to continue to provide sustainable growth, while having a positive impact on the local economies and communities in which we operate. Brad Colledge CEO and MD, Data#3 35
Slide 36: Outlook
For personal use only Consistent with previous practice, we won’t be providing specific FY25 guidance. Outlook In line with previous years, we continue to expect a sales peak in the months of May and June, and our goal remains to continue to deliver sustainable earnings growth. 36
Slide 37: Q&A
37 For personal use only Q&A
Slide 38: 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 39: For personal use only
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