Slide 1: FY20 Results Briefing
FY20 Results Briefing 19th August, 2020
Slide 2: Contents
Contents FY20 Summary 3 Our Business 5 Digital Transformation 9 FY20 Financial Performance 14 Trends 21 Outlook 24 Q&A 26 2
Slide 3: FY20 Summary
FY20 Summary 3
Slide 4: FY20 full year performance highlights
“We are very pleased with the full year performance, delivered another record result despite the particularly challenging second half. The result clearly demonstrates the inherent strength and relevance of our solution offerings in an evolving market. We are also delighted to achieve further extensi
Slide 5: Our Business
Our Business 5
Slide 6: Our vision is to harness the power of people and technology
Our vision is to harness the power of people and technology for a better future. 6
Slide 7: Data#3 in FY20
Data#3 in FY20 1,200+ staff 9 offices across Australia and Fiji 3 integration centres Founded in 1977 Approx. 60% revenue under contract Listed on the Target market enterprise and government ASX in 1997 Largest enterprise software supplier in Asia Pacific $1.6 Billion Over 2,000 services projects pe
Slide 8: Our Solutions
Our Solutions Cloud Modern Workplace Security Data & Analytics Connectivity Consulting Project Services Support Services 8
Slide 9: Digital Transformation
Digital Transformation 9
Slide 10: Digital Transformation
Digital Transformation Blockchain Artificial Intelligence Internet of Things 3D Printing FOUNDATION LAYER Connectivity Cloud Modern Workplace Security (Public & Private) 10
Slide 11: Partnering with leading global suppliers
Partnering with leading global suppliers 11
Slide 12: Impact of the COVID-19 pandemic
Impact of the COVID-19 pandemic • Safeguarding the well-being of • Supply chain risk has been our staff. mitigated. • Ensuring continuity of service to • Pre-packaged pandemic our customers. technology solutions. • 97% of our staff worked from • Excellent customer satisfaction home. feedback. • The
Slide 13: Normality Time
Change Management Cloud Backup Normality Cloud Telephony App Modernisation Device Management Data Centre Modernisation Endpoint Security BCP Review Robotic Process Automation Governance & Risk Infrastructure Security Home Office & Study Network Modernisation GROW Collaboration Identity Security Work
Slide 14: FY20 Financial Performance
FY20 Financial Performance 14
Slide 15: FY20 financial results
FY20 financial results Total Revenue Up 14.9% $1,625.9M Sales revenue Up 14.8% $1,623.8M Public cloud revenue (included above) Up 60.4% $581.0M Other revenue $2.1M Gross Profit (excluding Other revenue) Up 8.1% $188.0M Gross margin % Down 0.7 pp 11.6% EBIT Up 32.3% $34.1M EBIT margin % Up 0.3 pp 2.1
Slide 16: Sustained revenue growth, boosted by cloud
Sustained revenue growth, boosted by cloud Total revenue ($M) 1,800 1,625.9 Total revenue includes $581.0M of public cloud 1,600 1,415.6 revenues, up 60.4% on PCP. 1,400 1,200 1,181.4 Public cloud revenue ($M) 1,098.2 700 983.2 581.0 1,000 600 870.5 800 500 400 362.2 600 300 267.8 400 169.5 200 99.0
Slide 17: Changing sales mix
Changing sales mix Business unit FY20 Change Revenue by functional area ($M) revenue vs. FY19 16.2 5.1 Infrastructure Solutions $413.0M + 8.7% 204.9 Software Solutions $984.7M + 25.0% 413.0 Infrastructure Project Services $59.4M + 8.8% Software Support Services $86.6M - 19.6% Services Business Aspec
Slide 18: Steady improvement in operating leverage
Steady improvement in operating leverage Total gross profit ($M) Internal expenses ($M) 200 188.0 200 180 173.9 180 158.9 160.1 156.0 160 160 148.6 146.6 140.9 137.4 140 129.5 140 129.0 115.3 120 120 100 Staff 100 125.2 133.8 80 80 114.1 117.6 105.0 Operating 97.8 60 60 40 40 20 20 17.5 24.0 23.3 23
Slide 19: Sustained earnings growth
Sustained earnings growth NPBT ($M) NPAT ($M) – excl. minority interests 40 25 23.6 34.1 35 20 18.1 30 26.6 15.4 25 22.4 13.8 14.1 19.5 20.4 15 20 15.2 10.6 15 10 10 5 5 0 0 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 Basic EPS (cents) Dividends per share (cents) 20 15 13.9 15.35 15
Slide 20: Solid balance sheet & cash flow
Solid balance sheet & cash flow • Strong balance sheet with no material borrowings • Any borrowings are back-to-back with customer contracts • Cash flow ‘seasonality’ consistent with previous years • Inflated temporary cash surplus at 30 June 2020 • Average DSOS of 29.7 days – ahead of target and in
Slide 21: Trends
Trends 21
Slide 22: Market trends (with or without COVID-19)
Market trends (with or without COVID-19) Digital transformation Cybersecurity poses Attracting and retaining remains a high priority in increasingly larger threats and skilled resources is business strategy continues to grow increasingly competitive Artificial intelligence & The overall IT market Ve
Slide 23: Key priorities in FY21
Key priorities in FY21 Solutions – People & community – Customer experience – Operational excellence – promote lifecycle solution attract, develop and retain implement a customer improve operational engagement, and improve the best talent, and success program, and performance with system services pr
Slide 24: Outlook
Outlook 24
Slide 25: Outlook
Outlook Our expectation is that technology will play a major role in Australia’s economic recovery from the pandemic, and we remain well positioned to capitalise on those opportunities. The timing of the recovery is less certain, and consequently we are unable to provide meaningful commentary on our
Slide 26: Q&A
Q&A 26
Slide 27: 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 distribution of thi
Slide 28: www.data3.com.au
www.data3.com.au 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited 28