Slide 1: Data#3 (DTL) 1H 2011 results presentation
For personal use only # Data 3 (DTL) 1H 2011 results presentation March 2011
Slide 2: Highlights
Highlights For personal use only • Total revenue $378M +23% – Product revenue $325M +22% – Services revenue $52M +31% – 61% under contract • Sales margin 14.6% up from 14.2% • EBIT $10.3M +62% – EBIT margin 2.7% up from 2.1% • Net profit before tax $11.7M +71% – Earnings per share 51.6 cents +68% •
Slide 3: Growing revenue and profit
Growing revenue and profit For personal use only Total Revenue ($M) NPAT ($M) 7.9 400 377.8 8 306.7 300 6 230.0 4.7 3.7 4.0 200 157.3 4 3.0 135.8 2.6 112.8 100 2 0 0 1H '06 1H '07 1H '08 1H '09 1H '10 1H '11 1H '06 1H '07 1H '08 1H '09 1H '10 1H '11 EBIT ($M) 10.3 10 8 • Market share gains 6.4 6 4.1
Slide 4: Growing shareholder returns
Growing shareholder returns For personal use only EPS (cents) 60 DPS (cents) 51.6 38.0 40 50 40 30 30.7 23.0 26.2 20.0 30 23.9 20 18.0 16.9 19.5 14.0 20 11.0 10 10 0 0 1H '06 1H '07 1H '08 1H '09 1H '10 1H '11 1H '06 1H '07 1H '08 1H '09 1H '10 1H '11 30% 6 month ROE (%) 27.4% 25% • Driven by organi
Slide 5: Strong balance sheet and cash flows
Strong b/sheet and cash flows For personal use only NTA ($M) Net operating cash flow ($M) 30 23.4 80 20 18.1 60 14.4 15.3 12.5 40 10.4 20 10 0 -20 2H '09 1H '10 2H '10 1H '11 0 -40 1H '06 1H '07 1H '08 1H '09 1H '10 1H '11 -60 70 Cash ($M) 64.3 56.1 60 • Continued growth in net 50 40 32.4 tangible a
Slide 6: Performance of the areas of specialisation
For personal use only Performance of the areas of specialisation 5
Slide 7: What we do
Volume software What we do licensing and asset For personal use only management Software Licensing Workforce Infrastructure design recruitment & and deployment contracting projects People Integrated Solutions Solutions Customer Outsourced Managed Product Lifecycle hardware infrastructure Services So
Slide 8: Software Licensing more growth
Software Licensing more growth For personal use only Revenue ($M) 219.9 200 • Total revenue $219.9M +22% 179.9 • 16th year of consecutive growth 150 • Appointed to Microsoft 116.5 worldwide partner engagement board 100 • First sales of Microsoft’s 62.4 49.8 ‘cloud-based’ desktop software 50 39.9 • F
Slide 9: Infrastructure Solutions strong growth
Infrastructure Solutions strong growth For personal use only Revenue ($M) 138.0 140 • Total revenue $138.0M +24% 120 111.0 – Product $105.5M +21% 100 91.9 – Project services $16.6M +58% 80 73.6 68.0 – Managed services $16.0M +21% 61.7 60 • New govt panel contracts in Qld, 40 ACT & Vic 20 • New integ
Slide 10: People Solutions returns to growth
People Solutions returns to growth For personal use only Revenue ($M) 20.8 21.1 20 18.4 17.6 15.3 • Total revenue $18.4M +21% 15 • Contractor numbers up 33% 10.9 10 • New national sales leadership in place 5 • New operational systems • Lower operating costs 0 1H '06 1H '07 1H '08 1H '09 1H '10 1H '1
Slide 11: Continued reinvestment to drive productivity and efficiency
Continued reinvestment to drive productivity and efficiency For personal use only 90 Internal cost ratio (%) 88 86 • Internal systems investment 84 +9% over previous 82 corresponding period 80 78 • Staffing investment +18% 76 • Internal staff costs & operating 74 expenses as % of gross margin 72 dow
Slide 12: Market overview
For personal use only Market overview 11
Slide 13: Market opportunity
Market opportunity For personal use only Australian market is large Our share is small $30.3B in 2010 2% in 2010 2010 2011 2012 CAGR 2010 DTL DTL $B $B $B 2010- $B revenue % market 2013 $M Hardware 10.1 10.2 10.6 2.2% Hardware 10.1 194 1.9% Software 14.0 14.6 15.1 3.9% Software 14.0 320 2.3% Service
Slide 14: Market sector characteristics
Market sector characteristics For personal use only • Improving but price led • ‘On premises’ led • Reinvestment • Exploring cloud options appearing for desktop and niche • Impact of floods, applications Overall cyclone and NZ yet to play out Software • Mobile apps challenging enterprise IT • Supply
Slide 15: Technology consumption model
Technology consumption model For personal use only On customer premises Off premises Product Expertise Solution Outsource Cloud Low price / high volume Complex / risk Internet based Supply chain / life cycle Integration / project skills As a service contract Customer responsible Both responsible Sup
Slide 16: Supplier revenue model
Supplier revenue model For personal use only On customer premises Off premises Product Expertise Solution Outsource Cloud Product $ Product $ Project $ Project $ Labour $ Labour $ Contract $ Usage $ Data#3 revenue mix will change over time 15
Slide 17: Cloud in perspective
Cloud in perspective For personal use only ‘traditional’ product consumption remains the norm 16
Slide 18: Cloud in perspective
Cloud in perspective For personal use only • Current status – Still early stage / niche adoption – Lots of ‘hype’ – Significant global investment – Appearing in tender requirements – Significant long term potential • Our positioning – We are providing cloud solutions today – We are extending our off
Slide 19: 2H outlook
For personal use only 2H outlook 18
Slide 20: 2H outlook
2H outlook For personal use only Software Licensing Infrastructure Solutions • Modest increase in profit over 2H • Solid increase in profit over 2H 2010 2010 • New telesales team focused on • New telesales team focused on mid-market < 2000 seats mid-market < 500 seats • Supply chain gains through •
Slide 21: 2H outlook
2H outlook For personal use only People Solutions Internal investment • Improving market • Internal systems investment • Strong increase in profit over +45% over 2H 2010 2H 2010 • Staffing investment +21% • Property and equipment +48% Summary • 2H 2011 earnings expected to at least equal 2H 2010 20
Slide 22: 2H outlook
2H outlook For personal use only .....the company’s financial objective for the second half is to at least equal the performance of the previous second half. This would mean solid underlying growth given some shift in revenue and interest income to the first half and increases in internal investment
Slide 23: Summary
Summary For personal use only • Operating in attractive markets • Significant potential for attractive organic growth given market size and market share • Delivering growing earnings • Increasing dividend • Well positioned to continue growing shareholder value 22
Slide 24: Appendix – Financial summary
Appendix – Financial summary 1H 2011 1H 2010 For personal use only ($’000) ($’000) % Change Revenue by segment: Product $324,762 $266,753 +22% Services $51,644 $39,416 +31% Other revenue $1,361 $500 Total Revenue $377,767 $306,669 +23% Revenue by area of specialisation: Software Licensing $219,925 $
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