Slide 1: FY16 Results Briefing
For personal use only FY16 RESULTS BRIEFING 22 AUGUST 2016
Slide 2: Contents
CONTENTS For personal use only FY16 Summary 3 Our Business 6 FY16 Financial Performance 10 Update on recent acquisitions 19 FY17-19 Strategy 22 FY17 Outlook 26 Q&A 2
Slide 3: FY16 Summary
For personal use only FY16 SUMMARY
Slide 4: FY16 Summary
FY16 SUMMARY For personal use only “We continued to grow revenue and profit the year with NPAT 30% ahead of the pcp. The board is pleased to declare a full year dividend of 8.0 cps, an increase of 27% on pcp. FY16 total shareholder return was 41.4%” Laurence Baynham Data#3 Limited - CEO 4
Slide 5: FY16 Summary
FY16 SUMMARY For personal use only • 3 year business plan on track • Sustained revenue & profit growth • Growth in traditional business with increasing shift to services / annuity • Very strong growth in the emerging cloud-based business • Mixed financial performance from recent acquisitions • Restr
Slide 6: Our Business
For personal use only OUR BUSINESS
Slide 7: For personal use only
@eo@e0000@ FPPPF 1100+ aN GRATION CENTRES EMPLOYEES IN 2016 aes FOUNDED NM | pg USTED ON : Oo 1977 | aise SCALE : a © 983.2 6G & SS : 17.4M 4,719 43,120 2,275 IN REVENUE IN FY16 : individual products transacting service desk calls professional : sold to customers customers by customers —_ services p
Slide 8: Our Solutions
OUR SOLUTIONS For personal use only We offer a range of technology solutions to help customers achieve their business objectives. PDO2 Customer Solution Lifecycle – Position, Plan, Design, Deploy, Operate, Optimise 8
Slide 9: Our Business – Strategic Partners
OUR BUSINESS – Strategic Partners For personal use only Top 10 worldwide, global advisory role Top 10 Asia Pacific, advisory board Top 10 worldwide, global advisory board with global HP CEO Plus largest partner in Australia for several infrastructure and software suppliers 9
Slide 10: FY16 Financial Performance
For personal use only FY16 FINANCIAL PERFORMANCE
Slide 11: FY16 Performance – Sustained Growth
FY16 PERFORMANCE – SUSTAINED GROWTH For personal use only Revenue Up 13.0% $983.2M Product Up 12.0% $794.0M Services Up 16.9% $187.4M Cloud-based (included in Product & Services above) Up 110.5% $99.0M Other revenues $1.9M Gross Profit (excluding Other Revenue) Up 13.2% $146.6M Product Up 10.6% $73.
Slide 12: Strategic Shift in Business Mix
STRATEGIC SHIFT IN BUSINESS MIX For personal use only Product revenue ($M) Total revenue ($M) 1,000 983.2 794.0 1,000 870.5 811.4 833.6 800 689.1 639.6 697.3 709.2 771.0 586.4 800 697.8 600 600 400 400 200 200 0 FY11 FY12 FY13 FY14 FY15 FY16 0 FY11 FY12 FY13 FY14 FY15 FY16 Services revenue ($M) 200
Slide 13: Steady Growth in Gross Profit
STEADY GROWTH IN GROSS PROFIT For personal use only Product gross profit ($M) Total gross profit ($M) 80 73.2 160 146.6 63.9 64.2 62.0 66.2 129.5 60.0 140 120.0 122.5 118.9 60 120 111.7 100 40 80 20 60 40 0 20 FY11 FY12 FY13 FY14 FY15 FY16 0 FY11 FY12 FY13 FY14 FY15 FY16 Services gross profit ($M) 7
Slide 14: Expenses Reflect Growth Strategy
EXPENSES REFLECT GROWTH STRATEGY For personal use only Internal staff costs ($M) 120 97.8 105.0 100 87.9 90.2 92.9 77.0 80 60 40 20 0 FY11 FY12 FY13 FY14 FY15 FY16 Internal staff costs up 7.4% with headcount increased by the Business Aspect acquisition and general organic growth. Operating expenses
Slide 15: Sustained Earnings Growth
SUSTAINED EARNINGS GROWTH For personal use only NPAT ($M) EPS (cents) 20 12 15.0 13.8 9.74 15 13.7 12.1 10 8.88 8.98 10.6 7.88 8 6.89 10 7.5 6 4.89 5 4 2 0 0 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 DPS (cents) 8 7.70 7.00 7.00 8.00 Solid growth in revenue and gross profit deliver
Slide 16: Solid Balance Sheet & Cashflow
SOLID BALANCE SHEET & CASHFLOW 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 • Operating cash flow and inventory impacted by sizable infrastructure projects in prog
Slide 17: Broad-Based Market Growth
BROAD-BASED MARKET GROWTH For personal use only % change in gross profit FY16 vs. FY15 QLD NSW ACT VIC & TAS SA WA 35% 25% 19.0% 18.0% 14.0% 15% 12.0% 10.0% 5% -5% -15% -10.0% 17
Slide 18: FY16 Performance – People
FY16 PERFORMANCE – PEOPLE For personal use only People Numbers People Satisfaction / 5 Employer of Choice (% recommended by Data#3) Data#3 was also named Australia’s Best Company in the 2016 Employer of Choice Award for the Human Resources Director (HRD) Magazine. Data#3 won the gold medal in the la
Slide 19: Update on Recent Acquisitions
For personal use only UPDATE ON RECENT ACQUISITIONS
Slide 20: Business Aspect
BUSINESS ASPECT For personal use only • Steady growth with national expansion • First full year of operation in the group • Year of investment for national growth • Earn-out not achieved in FY16 • Increasing contribution to group profit • Strategic positioning 20
Slide 21: Discovery Technology
DISCOVERY TECHNOLOGY For personal use only • Controlling interest acquired in July 2015, and fully consolidated in FY16 result • Software developer of Wi-Fi content management and analytics application “CCX” • Operates independently of Data#3 • FY16 financial performance disappointing due to abnorma
Slide 22: FY17–19 Strategy
For personal use only FY17–19 STRATEGY
Slide 23: Underlying Fundamentals Influencing Sector Growth
UNDERLYING FUNDAMENTALS INFLUENCING For personal use only SECTOR GROWTH • Economic outlook is mixed but overall neutral for commercial customers • Education and health sectors will continue to grow • A rapid shift to consumption-based and service-centric solutions is occurring • Digital solutions wi
Slide 24: Long Term Objectives
LONG TERM OBJECTIVES For personal use only 1. Deliver sustained profit growth 2. Grow services revenue with an increase in annuity and an increase in margin 3. Grow cloud services revenues. 24
Slide 25: Key Priorities in FY17
KEY PRIORITIES IN FY17 For personal use only 1. Investing in sales enablement to better position ourselves with our customer’s digital transformation 2. Growing our Business Aspect consulting business and leveraging Data#3 where appropriate 3. Improving contribution from Discovery Technology 4. Esta
Slide 26: FY17 Outlook
For personal use only FY17 OUTLOOK
Slide 27: FY17 Outlook
FY17 OUTLOOK For personal use only Our overall financial goal for FY17 is to continue to deliver earnings growth and returns to shareholders 27
Slide 28: Q&A
For personal use only Q&A
Slide 29: Appendix – Financial Summary
APPENDIX 1 – FINANCIAL SUMMARY For personal use only 29
Slide 30: 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 31: Contact Us
CONTACT US For personal use only Interested in how Data#3 can help? www.data3.com.au | 1300 23 28 23 Follow Us Twitter.com/Data3Limited Facebook.com/Data3Limited Linkedin.com/company/Data3 Youtube.com/Data3Limited 31