Slide 1: FY18 Interim Results Briefing
For personal use only FY18 INTERIM RESULTS BRIEFING 21 FEBRUARY 2018
Slide 2: Contents
CONTENTS For personal use only Our Business 3 Recent Customer Example 6 1H FY18 Summary 8 1H FY18 Financial Performance 13 Strategy 20 FY18 Outlook 23 Q&A 26
Slide 3: Our Business
For personal use only OUR BUSINESS
Slide 4: For personal use only
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Slide 5: Our Solutions
OUR SOLUTIONS 5 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 SUPPORT
Slide 6: Recent Customer Example
For personal use only RECENT CUSTOMER EXAMPLE
Slide 7: Department of Finance – Govdex replacement
7 Department of Finance – For personal use only Govdex replacement Federal Government cloud-based enterprise file sharing and community collaboration solution. Based on Microsoft Azure and Office 365, the new customised cloud service will replace the existing Govdex whole-of-government platform, whi
Slide 8: 1H FY18 Summary
For personal use only 1H FY18 SUMMARY
Slide 9: For personal use only
9 For personal use only “Despite ongoing revenue growth with significant increase in cloud-based business, 1H earnings were impacted by planned and unplanned events. NPAT and EPS decreased by 52.5% compared to the strong PCP result. The board declared an interim dividend of 1.6 cps, representing a 9
Slide 10: 1H Earnings Impacts
10 1H EARNINGS IMPACTS For personal use only As planned: • Decommissioning of the Data#3 Cloud platform contributed to the services profit decline (FY18 impact only). • Continuing the strategy of offering customers market-leading public or private cloud solutions from our global vendor partners.
Slide 11: 1H Earnings Impacts
11 1H EARNINGS IMPACTS For personal use only Unexpected events: • Customer delays and product supplier delivery constraints in Nov/Dec caused a material shift in profit to 2H • The lack of a large-scale integration project in 1H (compared to two substantial projects in the PCP) • Business Aspect Con
Slide 12: Operational Summary
12 OPERATIONAL SUMMARY For personal use only • Steady progress with strategic shift towards services • Strong growth in cloud-based revenues, up 48% to $86M • Continued investment in systems and people • 2 more external employer of choice awards
Slide 13: 1H FY18 Financial Performance
For personal use only 1H FY18 FINANCIAL PERFORMANCE
Slide 14: 1H FY18 Performance Summary
14 1H FY18 PERFORMANCE SUMMARY For personal use only Revenue Up 8.2% $547.3M Product Up 7.9% $446.6M Services Up 9.6% $100.0M Public cloud (included in Product & Services above) Up 48.4% $86.1M Other Revenue $0.7M Gross Profit (excluding Other Revenue) Down 3.0% $71.8M Product Down 8.6% $31.7M Servi
Slide 15: Steady Strategic Shift in Business Mix
15 STEADY STRATEGIC SHIFT IN BUSINESS MIX For personal use only Product revenue ($M) Total revenue ($M) 500 446.6 413.9 600 547.3 400 338.6 332.7 329.7 371.1 506.0 500 457.5 300 406.2 399.1 406.4 400 200 300 100 200 0 1H13 1H14 1H15 1H16 1H17 1H18 100 0 1H13 1H14 1H15 1H16 1H17 1H18 Services revenue
Slide 16: Growth in Services Gross Profit
16 GROWTH IN SERVICES GROSS PROFIT For personal use only Product gross profit ($M) Total gross profit ($M) 80 74.0 71.8 50 68.4 61.6 62.4 40 34.4 34.7 57.5 32.5 30.5 31.7 60 28.7 30 40 20 10 20 0 0 1H13 1H14 1H15 1H16 1H17 1H18 1H13 1H14 1H15 1H16 1H17 1H18 Services gross profit ($M) 50 39.2 40.0 40
Slide 17: Expenses Reflect Growth Strategy
17 EXPENSES REFLECT GROWTH STRATEGY For personal use only Internal staff costs ($M) Operating expenses ($M) 54.8 56.8 14 11.7 11.9 11.7 60 49.2 51.4 44.7 46.7 12 50 10 8.9 8.0 8.3 40 8 30 6 20 4 10 2 0 0 1H13 1H14 1H15 1H16 1H17 1H18 1H13 1H14 1H15 1H16 1H17 1H18 Internal staff costs up 3.6% with ma
Slide 18: Earnings
18 EARNINGS For personal use only NPBT ($M) EPS (cents) 12 10.4 5 4.40 10 8.1 3.71 4 8 6.1 2.77 6 5.2 3 2.32 3.7 4.0 1.67 1.76 4 2 2 1 0 0 1H13 1H14 1H15 1H16 1H17 1H18 1H13 1H14 1H15 1H16 1H17 1H18 NPAT ($M) – excluding minority interests DPS (cents) 8 6.8 5 5.7 3.45 6 4 3.35 4.3 3.6 3 2.50 4 2.7 2
Slide 19: Solid Balance Sheet & Cashflow
19 SOLID BALANCE SHEET & CASHFLOW For personal use only • Strong balance sheet with no material borrowings • Any borrowings are back-to-back with customer contracts • Cash flow ‘seasonality’ consistent with previous years • Average DSOS of 25.2 days - industry best practice and better than PCP
Slide 20: FY18–20 Strategy
For personal use only FY18–20 STRATEGY
Slide 21: Key Priorities in FY18
21 KEY PRIORITIES IN FY18 For personal use only 1. Accelerate Services 2. Accelerate cloud adoption 3. Engage our people 4. Engage our customers to enable their success 5. Continue to adapt and enhance our solutions 6. Improve internal systems for productivity 7. Sustain financial performance
Slide 22: Market Fundamentals Unchanged
22 MARKET FUNDAMENTALS UNCHANGED For personal use only • Digital transformation is more prevalent in business strategy • Cyber security remains top priority • Consumption of digital technology will continue to shift from capital expenditure to operating expenditure • Industry consolidation is creati
Slide 23: FY18 Outlook
For personal use only FY18 OUTLOOK
Slide 24: 2H Business Outlook
24 2H BUSINESS OUTLOOK For personal use only • FY18 result will be more heavily skewed to 2H than originally planned • January actual result was significantly ahead of plan and PCP • The 2H pipeline includes two large integration projects (hardware, software and services) • Positive steps are underw
Slide 25: FY18 Outlook
25 FY18 OUTLOOK For personal use only Despite lower than planned 1H earnings, we still expect to achieve our FY18 financial goal to improve on FY17’s best ever profit result. We are confident that we have the right strategy to underpin sustainable growth in long term shareholder returns.
Slide 26: Q&A
For personal use only Q&A
Slide 27: Appendix – Financial Summary
27 APPENDIX 1 – FINANCIAL SUMMARY For personal use only
Slide 28: Disclaimer
28 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
Slide 29: For personal use only
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