Slide 1: FY24 Interim Results Briefing
FY24 Interim For personal use only Results Briefing 15th February 2024 Presented by Laurence Baynham Cherie O’Riordan Brad Colledge CEO CFO Executive General Manager (Incoming CEO) 1
Slide 2: Agenda
Agenda For personal use only Data#3 Overview 1H FY24 Operational Overview 1H FY24 Financial Performance IT Sector Trends and AI FY24 Strategy & Outlook Q&A 2
Slide 3: 1H FY24 Financial Highlights
1H FY24 Financial Highlights For personal use only NPBT NPAT Gross Sales $30.8M $21.4M $1.3B Up 25.3% Up 25.5% Up 13.4% Gross Profit Basic EPS Dividends per share $130.6M 13.85 cents 12.60 cents Up 8.8% Up 25.5% Up 26% Payout ratio of 91% 3
Slide 4: 1H FY24 Operational Overview
For personal use only 1H FY24 Operational Overview 4
Slide 5: 1H FY24 Overview
1H FY24 Overview Gross Sales growth rate Recurring People relative to IT market Gross Sales up from 65% to For personal use only >2x 67% 1,400+ • Continued sustainable earnings growth Recent key awards + certifications across several years • HRD Employer of Choice – 9th year in a row • Strong growth
Slide 6: 1H FY24 Operational Highlights
1H FY24 Operational Highlights For personal use only Multi-cloud Growth Security Growth Services Cloud is now ubiquitous in our Fastest growing solution Strong growth in Consulting and customer solutions and top customer priority Managed Services should improve ISO 27001 certified future Gross Margi
Slide 7: 1H FY24 Financial Performance
For personal use only 1H FY24 Financial Performance 7
Slide 8: Sustained earnings growth
Sustained earnings growth NPBT ($M) Basic EPS (cents) 13.85 For personal use only 35 30.8 14 30 12 11.04 24.6 25 10 8.01 20 18.5 8 13.9 5.65 6.09 15 12.7 6 9.0 3.99 10 4 5 2 0 0 1H19 1H20 1H21 1H22 1H23 1H24 1H19 1H20 1H21 1H22 1H23 1H24 NPAT ($M) - excluding minority interests DPS (cents) 25 14 12.
Slide 9: Change in revenue presentation
Change in revenue presentation • Review of software licensing agreements to reassess For personal use only 1H whether the company is acting as principal or agent 1H 1H $M Growth FY24 FY23 % • Determined that the company is acting as an agent in respect of these sales, which resulted in a change to G
Slide 10: Sustained growth in Gross Sales
Sustained growth in Gross Sales Total Gross Sales ($M) Gross Sales CAGR of 15.5%1 fuelled For personal use only by software licensing, multi-cloud solutions and services. 1400 1,321.9 1200 1,166.1 999.3 1000 856.7 Strong customer spend in higher 800 growth education, health 718.9 644.4 and resource
Slide 11: Changing sales mix
Changing sales mix Gross Sales trend by functional area ($M) 1H FY24 Change For personal use only 1400 Gross Business unit vs. Sales 1H FY23 ($M) 1200 Business Aspect Consulting 16.1 + 0.9% 1000 Project Services 38.4 + 5.9% 800 Maintenance Services 63.2 + 36.1% 600 Managed Services 20.9 + 12.6% 400
Slide 12: Gross margin and Gross profit
Gross margin and Gross profit Drivers of first half Gross Profit growth of 8.8%: For personal use only 1H 1H 1H • Strong growth in software licensing and multi-cloud FY23 Growth FY24 FY23 revenues % • Services growth has boosted total Gross Profit, in line with strategy Total Gross Profit ($M) 130.6
Slide 13: Steady improvement in operating leverage
Steady improvement in operating leverage Total Gross Profit ($M) & Total Margin on gross Internal expenses (Staff & Operating costs $M) For personal use only 140 sales (%) 15.0% 120 100.0% 130.6 120.0 14.0% 120 100 105.4 13.0% 95.0% 100 88.6 89.7 12.0% 82.3 80 11.0% 90.0% 80 10.0% 60 60 9.0% 85.0% 4
Slide 14: Statement of profit or loss
Statement of profit or loss • Revenue increased by 11.1% (including other income) • Interest income $6.5M vs 1H FY23 $1.6M. ~ $2.5M forecast for 2H FY24, assuming no change to cash rate or cash flow seasonality For personal use only • Internal staff costs increased by 10.1% on 1H FY23, due to increa
Slide 15: Balance sheet
Balance sheet For personal use only • Strong balance sheet with no borrowings • December sales spike (in line with normal customer spend patterns) inflated trade receivables and trade payables at half year end. As in prior periods, this created a large temporary cash surplus at 31 December, but to a
Slide 16: Working capital analysis
Working capital analysis Efficient working capital model. Working capital components Short or negative working capital 870,000 cycles underpin self-funding of For personal use only 770,000 business. 670,000 570,000 Inventory reduced in 1H FY24. 470,000 370,000 270,000 Other current assets 170,000 In
Slide 17: Statement of cash flows
Statement of cash flows • Cash flow ‘seasonality’ consistent with previous For personal use only years • Ended FY23 with higher than normal cash position due to customer prepayments, causing higher net outflow in 1H FY24 • 1H FY24 average daily cash balance $300M due to surplus carried over from Jun
Slide 18: Sector Trends and AI
For personal use only Sector Trends and AI 18
Slide 19: 2024 Global Technology Industry Trends
2024 Global Technology Industry Trends1 For personal use only IT Industry Growth Annual spend on IT expected to grow 6.8% Software Devices Organisations to invest in 13% growth expected 5% growth expected planning for use of GenAI > US$1Trillion globally (decrease of 9% in 2023) IT Services Data Cen
Slide 20: Satya Nadella quote on applying AI at scale
We've moved from talking For personal use only about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we're winning new customers and helping drive new benefits and productivity gains across every sector. Satya Nadella, CEO of Microsoft 20
Slide 21: The Data#3 AI opportunity - M365 Copilot Readiness
The Data#3 AI opportunity - M365 Copilot Readiness Assessments and associated services For personal use only Information Organisational Technology Governance Change Platform and Security Management Significant services opportunity for consulting and adoption of AI Solutions 120 plus opportunities si
Slide 22: FY24 Strategy and Outlook
For personal use only FY24 Strategy and Outlook 22
Slide 23: Strategic Framework
Strategic Remarkable Framework People For personal use only Innovative Customer Exceptional Solutions Success Performance Organisational Excellence 23
Slide 24: Integrated Solutions embedded with AI
Integrated Solutions embedded with AI For personal use only 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 Pri
Slide 25: Lifecycle
25 For personal use only Lifecycle
Slide 26: Recent Customer Stories
Recent Customer Stories https://www.data3.com/knowledge-centre For personal use only 26
Slide 27: Royal Flying Doctor Service
Royal Flying Doctor Service For personal use only Business Problem The Royal Flying Doctor Service (RFDS) (Queensland Section) was dependent on disparate data sources and wanted to integrate aircraft, patient, and crew data to give a clear picture of availability. IT Outcome • Access to integrated,
Slide 28: 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 the Partnerships with leading Expertise and breadth of At the forefront of industry best people global vendors solutions across change the customer lifecycle Our Agi
Slide 29: Strategic Focus Areas
Strategic Focus Areas For personal use only Customer Security Accelerating ESG Experience Services Protecting our business To further develop and Continued investment in enhance our initiatives Long-term view, across ESG Market opportunity Managed Services not transactional Go to market with Strong
Slide 30: Outlook
Outlook Multi-Cloud & Security Growth For personal use only Continued growth in multi-cloud solutions and cyber security solutions Consistent with previous practice, we are unable to provide specific FY24 Services Growth guidance at this stage. Services growth is expected to be accelerated by intere
Slide 31: Q&A
31 For personal use only Q&A
Slide 32: 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 For personal use on
Slide 33: For personal use only
For personal use only www.data3.com.au 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited 33