Data#3 Limited. · ASX:DTL
Data#3 — Investor Day (November 2023)
90 slides from Data#3's investor day presentation, Nov 16, 2023
Slide 1: ASX Electronic Lodgement - DTL Investor Briefing Presentation
ELECTRONIC LODGEMENT Data#3 Limited ABN 31 010 545 267 16 November 2023 The Manager For personal use only ASX Markets Announcements Office Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000 Dear Sir or Madam, DTL Investor Briefing Presentation Data#3 Limited (ASX:DTL) advises it will ho
Slide 2: Investor Day Briefing 2023
For personal use only Investor Day Briefing 2023
Slide 3: For personal use only
For personal use only
Slide 4: Agenda
SPEAKER TOPIC TIME Breakfast 8:30am Session One Laurence Baynham, CEO & Managing Director Opening For personal use only Mark Gray, Chairman Introduction Brad Colledge, EGM Data#3 Overview and Strategy Cherie O’Riordan, CFO Financial Insights and ESG Graham Robinson, CTO Artificial Intelligence Sessi
Slide 5: Chairman Mark Gray
For personal use only Chairman Mark Gray
Slide 6: Brad Colledge
For personal use only Brad Colledge Executive General Manager
Slide 7: Data#3 in FY23
Data#3 in FY23 For personal use only Revenue Years in business People Listed on the ASX in $2.5b 46 1,400+ 1997 Transacting customer groups Offices across Australia and Fiji Integration centres 2,000+ 9 3 Professional services projects HRD Employer of Choice Award In 2023, Data#3 was listed on the 2
Slide 8: Economic Outlook and Australian IT Market FY24
Economic Outlook and Australian IT Market FY24 For personal use only IT Market (Australia) • IT Market to grow at 5.8% (Gartner) • Artificial Intelligence is fast becoming the driving force for market growth • Significant improvements in supply chain • Predicted growth in Security and Cloud
Slide 9: FY24 Strategy
For personal use only FY24 Strategy
Slide 10: Strategic Framework
Strategic Remarkable Framework People For personal use only Innovative Customer Exceptional Solutions Success Performance Operational Excellence 10
Slide 11: Digital Transformation
Digital Transformation For personal use only Operational Technology Internet of Things Robotics Extended Reality Foundational Technology Multi-Cloud Hybrid Work Security Data & Analytics Connectivity Digital Milestones Computers The Internet Artificial Intelligence
Slide 12: 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 13: Lifecycle
For personal use only Lifecycle
Slide 14: Customer stories: Visit Data3.com
Customer stories: Visit Data3.com For personal use only 14
Slide 15: Top five partner in Australia
For personal use only Top five partner #1 partner in Australia in Australia Strategic partnerships Significant investment in 400+ other partnerships with global leaders technical capability and with emerging vendors certifications 15
Slide 16: Cisco partner awards announcement
Announcing November 8, 2023; Leading Australian technology services and solutions For personal use only provider, Data#3, has once again been honoured at the Cisco Partner Conference in Miami, receiving the “Cisco Software Partner of the Year” award, its sixth consecutive global award. November 8, 2
Slide 17: Awards
Awards NEWS Data#3 wins Cisco For personal use only NEWS Customer Experience Partner of the Year award Data#3 wins Cisco Global for APAC 2023 Software Partner of the Year award 2023 Data#3 wins Veeam Pro Partner of the year for 4th consecutive year 17
Slide 18: 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 Partnerships with leading Expertise and breadth of At the forefront of industry the best people global vendors solutions across change the customer lifecycle Our Agi
Slide 19: Our Opportunity
Our Opportunity For personal use only Services growth that Growth in Multi-Cloud Generative AI is Growing pipeline of will complement solutions and Cyber accelerating digital large infrastructure Software and Security transformation and projects Infrastructure leading fuelling growth to improved mar
Slide 20: Cherie O'Riordan, Chief Financial Officer
For personal use only Cherie O’Riordan Chief Financial Officer
Slide 21: Profitability and Gross Margins
Profitability and Gross Margins Focus on sustained earnings and gross • Larger, more competitive deals won at For personal use only profit growth, rather than gross lower margins to drive strategic future margins business, including services • Competitive market factors • Overall gross margin at or
Slide 22: Profitability and Gross Margins
Profitability and Gross Margins For personal use only Inbuilt protections against price and wage inflation include: • Reseller Agreements enable pass through of any price increases in product and software • Services contract structures – Time & Materials (low risk) vs. Fixed Price (project managed;
Slide 23: Enterprise Managed Services Contract Profitability
Enterprise Managed Services Contract Profitability Sales/ Transition Year 1 For personal use only • Often elongated sales • Stabilisation period process • Build further process • Investigate and connect maturity and knowledge customer’s environment • Continued high effort • Assess key risks and gaps
Slide 24: Increasing Profitability
Increasing Profitability For personal use only • Cross selling by line of business and solution Average total spend (revenue) by customer based on tenure with Data#3: • Driving profitable services that make the customer sticky 1,600 • New solutions like Copilot where we are the 1,400 major incumbent
Slide 25: Internal Cost Ratio
Internal Cost Ratio Steady improvement in operating • Opportunities to put more volume and For personal use only leverage contracts through all lines of business with proportionately fewer additional resources • System and process improvements, including enhancements of ERP and Managed Services plat
Slide 26: Working Capital
Working Capital • Self-funded business with efficient working • Average cash position FY23 of $120.9M For personal use only capital model and short or negative working however some low points < $10M throughout capital cycles year • Favourable trade terms with suppliers (often • Net Working Capital a
Slide 27: Financial Reporting Insights
Financial Reporting Insights See notes on the types of For personal use only revenue and expenses allocated to each line of the Consolidated statement of profit or loss:
Slide 28: ESG
ESG ESG is integral to our company strategy For personal use only • Released 2023 ESG Report to ASX 24 October 2023, including alignment with United Nations Sustainable Development Goals (UN SDGs): 2023 ESG Report • Received Frost & Sullivan Institute 2023 Enlightened Growth Leadership Award for sec
Slide 29: Graham Robinson, Chief Technology Officer
For personal use only Graham Robinson Chief Technology Officer
Slide 30: Energy, Machines, Computing, Internet, Artificial Intelligence
For personal use only Energy Machines Computing Internet Artificial Intelligence
Slide 31: Artificial Intelligence: beginning of a new era of IT
We are at the Artificial Intelligence For personal use only beginning of a new era of IT. Generative AI will be as impactful as cloud or the internet. Satya Nadella, CEO of Microsoft 31
Slide 32: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience
Slide 33: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience Lifecycle Services
Slide 34: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience Security Portfolio
Slide 35: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience Data & Analytics
Slide 36: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience Hybrid Everything
Slide 37: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience Mixed Reality
Slide 38: Industry Trends
Industry Trends For personal use only Talent Cyber Security Automation Decentralisation Digital Experience
Slide 39: Transistors per Microprocessor
For personal use only Transistors per Microprocessor Moore’s Law Internet Broadband Paper GenAI GPT 4
Slide 40: Transistors per Microprocessor
For personal use only Transistors per Microprocessor Moore’s Law 40M +20B 17 Years 20B +880B 6 Years 900B
Slide 41: Emerging technologies
For personal use only Artificial Internet Renewable Intelligence Of Things Energy Extended Blockchain Robotics Reality
Slide 42: Digital Transformation
Digital Transformation For personal use only Operational Technology Internet of Things Robotics Extended Reality Foundational Technology Cloud Hybrid Work Security Data & Analytics Connectivity Digital Milestones Computers The Internet Artificial Intelligence
Slide 43: Cloud
CLOUD For personal use only Application M365 Layer + Copilot GenAI OpenAI Layer GPT4 Computing Microsoft Layer Azure Cloud
Slide 44: Multi-Cloud
MULTI-CLOUD For personal use only Application M365 Business Layer + Copilot Apps GenAI OpenAI Meta Layer GPT4 Llama 2 Computing Microsoft Data Centre Layer Azure Cloud Infrastructure
Slide 45: Multi-Cloud Security
MULTI-CLOUD SECURITY For personal use only Application M365 Business Layer + Copilot Apps Cisco Armorblox GenAI OpenAI Meta Layer GPT4 Llama 2 Computing Microsoft Data Centre Google Layer Azure Cloud Infrastructure Cloud
Slide 46: Multi-Cloud Security Devices
MULTI-CLOUD SECURITY DEVICES For personal use only Application M365 Business Windows 11 Layer + Copilot Apps + Copilot Cisco Armorblox GenAI OpenAI Meta Meta Layer GPT4 Llama 2 Llama 2 Computing Microsoft Data Centre Google Microsoft Layer Azure Cloud Infrastructure Cloud Surface
Slide 47: Multi-Cloud Security Devices
MULTI-CLOUD SECURITY DEVICES For personal use only Application M365 Business Windows 11 Layer + Copilot Apps + Copilot Cisco Armorblox GenAI OpenAI Meta Meta Layer GPT4 Llama 2 Llama 2 Computing Microsoft Data Centre Google Microsoft Layer Azure Cloud Infrastructure Cloud Surface
Slide 48: Q&A
For personal use only Q&A
Slide 49: John Tan, Chief Customer Officer
For personal use only John Tan Chief Customer Officer
Slide 50: B2B IT Spending by Technology Area 2021-27
B2B IT Spending by Technology Area 2021-27 $62B TAM For personal use only Data Center Systems Devices IT Services Software Source: Gartner Forecast Analysis: IT Spending by Employment Size, Worldwide – January 2023
Slide 51: IT Spending by Business Size 2021-27
IT Spending by Business Size 2021-27 For personal use only Under 10 Employees 10 to 99 Employees 100 to 249 Employees 250 to 499 Employees 500 to 999 Employees 1,000 to 5,000 Employees Over 5,000 Employees Source: Gartner Forecast Analysis: IT Spending by Employment Size, Worldwide – January 2023
Slide 52: Future Opportunity
Future Opportunity For personal use only • Australian IT Spending increasing from +5.8% in Cyber Security 2023 to +7.8% in 2024 • B2B spend rising from low single digits to double digit growth in Transportation, Healthcare, Utilities, Oil & Gas, Construction, Government, Education, Banking. • Throug
Slide 53: Buying Model Trends
Buying Model Trends For personal use only As-a-Service / Product Managed Solution Sale Marketplace Consumption Transaction Service Based Service Lifecycle Product & Leverage Level or Resale Selling & Services Cloud Spend Delivery Outcome Based
Slide 54: Business & Technology Focus
Business & Technology Focus For personal use only Enable a Multi- Provide Hybrid Promote shifts to Rapid adoption Cloud approach Work solutions new Buying of AI Models Public Cloud Collaboration Resale Generative AI Private Cloud Devices Solution Sale Enterprise AI Cyber Security Security Marketplac
Slide 55: Data#3 Customers
Data#3 Customers For personal use only GP Mix Local Government, 14% 2,000 Customer Groups Corporate, 41% Federal Government, 4.8X Spend in 5 Years 22% 6.5X Spend in 10 Years State Government, 23%
Slide 56: Customer Success Strategy
Customer Success Strategy 2x Opportunity Volume 8x Opportunity Value For personal use only +36% Improvement in Win Rates Improvement in Gross Margins
Slide 57: Griffith University Network Transformation
The Griffith University Network Transformation Project represents a strategic investment for the University. Data#3’s history of working with the University and For personal use only strong capability in using technology to drive our business was a key part of our decision. Our teams are working clo
Slide 58: Scale & Capability
Scale & Capability Sales & Go To Market Salespeople across Australia supported by sales operations and customer success. For personal use only Supported by solution specialists. Channels Largely Face-to-Face Sales with a shift towards digital sales for efficiency and scale JuiceIT Brisbane 2023 Enga
Slide 59: Delivering a Digital Future
Delivering a Digital Future For personal use only One place where & Lifecycle I can buy, engage and optimise the lifecycle of hardware and software across my environment. Data, Telemetry, Insights, and AI
Slide 60: Winning in market
Winning in market For personal use only Having the right Solutions and a complete a Culture that team on the park Partnering is an Services & drives art form Lifecycle meaningful approach engagements
Slide 61: Vendor Strategy and Programs
Vendor Strategy and Programs For personal use only Increased Focus Historical Increased Focus Focus
Slide 62: Steven Worrall, Microsoft Australia and New Zealand
For personal use only Steven Worrall Managing Director, Microsoft Australia and New Zealand
Slide 63: Data#3 and Microsoft
Data#3 and Microsoft Ten Advanced Specialisations across: Microsoft 365 Microsoft Partner since For personal use only Copilot Early Access 1994 • Azure (2) Program (EAP) • Modern Work (4) • Security (4) Data#3 1 of 600 Customers Worldwide Individual exams, certifications Surface PC Reseller of the Y
Slide 64: For personal use only
For personal use only 0 1 10 100
Slide 65: Increase in capital investments
35 For personal use only 30 25 Increase in $trillions 20 capital investments 15 10 5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 R&D Expenses Capital Expenses
Slide 66: New regulatory patterns emerging
New regulatory patterns emerging For personal use only Safety and Security Rights of Citizens Value of Labour and • Ensure humans retain • Protect privacy, child IP control of AI and it works safety, consumer • The copyright debate as expected protection, and election as fundamentally a labor • Ensu
Slide 67: A three-part plan for the next two years
For personal use only A three-part plan for the next two years • Invest A$5B to build out Australia’s AI and digital capacity • Bring digital skills to 300,000 people • Partner with the Australian Signals Directorate the Microsoft-ASD Cyber Shield
Slide 68: Brad Colledge, Executive General Manager
For personal use only Brad Colledge Executive General Manager
Slide 69: People Satisfaction and Core Values
4.46/5 People Satisfaction Our Core Values For personal use only Honesty 5.7 Years Excellence Average tenure Agility Respect Teamwork 15.7%* Turnover *Reduced by 7%, industry average 19.7%
Slide 70: Key People Opportunities & Risks
Key People Opportunities & Risks For personal use only Talent Shortages Skills for the Diversity & Innovation & Future Inclusion Automation
Slide 71: Talent Acquisition & Skills Shortage
Talent Acquisition & Skills Shortage For personal use only Employee People Solutions Career Pathways Investment in Centric Labour Differentiator in Diversifying Sourcing Market the market Talent Pools Platforms
Slide 72: Skills for the Future
Skills for the Future For personal use only 1.2M tech workers +8% increase 10,000+ hours by 2030 in tech jobs professional Development
Slide 73: Innovation, Diversity & Inclusion
Innovation, Diversity & Inclusion For personal use only Potential 30% 28% 60% 35% Productivity English second Caring Female Gains through AI Language Responsibilities representation across the business
Slide 74: Workforce Growth FY19-FY23
Workforce Growth FY19-FY23 For personal use only Total Workforce Size FY19-FY23 1450 1400 1350 1300 1250 1200 1150 1100 1050 1000 FY19 FY20 FY21 FY22 FY23
Slide 75: The Data#3 People Experience
The Data#3 People Experience For personal use only
Slide 76: People-related opportunities central to future success
For personal use only People-related We are committed to That is ready to meet Ensuring the future opportunities are creating a skilled, our strategic objectives, success of our people, central to our future dynamic, diverse, drive profitability and partners, customers success inclusive, and adaptab
Slide 77: Richard Dornhart, National Practice Manager – Security
For personal use only Richard Dornhart National Practice Manager – Security
Slide 78: Business Outcomes in 2023
Business Outcomes in 2023 For personal use only TOP BUSINESS OUTCOMES IN 2023* CIO DIGITAL INITIATIVES ALIGNED TO BUSINESS OUTCOMES* Business 1 Application Operational Process Optimization & Risk Modernisation Resilience Automation Management Innovate with 2 Customer Excellence Enhance Online Data E
Slide 79: CISO Priorities
CISO Priorities CIO DIGITAL CISO CYBERSECURITY PROJECTS* CYBERSECURITY TOOLS* INITIATIVES* Application Data Loss Endpoint Data Cloud Access Privileged Access Single Sign-On Data Application Identity & Access Prevention Encryption Classification Security Broker Management Modernisation Security Secur
Slide 80: Choosing the Solutions
For personal use only Choosing the Solutions
Slide 81: Complexity is the Enemy of Security
For personal use only Complexity is the Enemy of Security
Slide 82: Total Addressable Market
Total Addressable Market For personal use only $7.7B $6.9B $6.1B FY22 FY23 FY24 Total Information Security & Risk Management End User Spending in Australia* Australian security spending to grow 11.5 per cent in 2024: Gartner - Security - CRN Australia
Slide 83: What We Do
What We Do For personal use only Safeguard our Proactively assist Enhance customer Drive Adoption & Enable and secure customers’ our customers in capabilities with Consumption with our customers’ Identities, Information, managing Cyber Managed Security Services & Lifecycle cloud strategy Infrastruct
Slide 84: Security services portfolio
Can you run it for me? What Do I Plan for? Managed Detection & Response Governance Risk & Compliance Assessment & Strategy Managed Endpoint Detection & Response Information Protection & Governance For personal use only Vulnerability Management as a Service Identity & Access Management Managed Threat
Slide 85: Security vendor partners
rae A M a Em Microsoft cisco ff paloalto Delinea SecurityHQ ds FRERTINET _ a NOZOM! £5 mimecast ©>\tenable Orrevo WSILVERFORT —_ () Sentinelone
Slide 86: Customer sectors
For personal use only Government Commercial Enterprise Mining & Education Healthcare Construction
Slide 87: Customer sectors
For personal use only Government Commercial Enterprise Mining & Education Healthcare Construction
Slide 88: Complexity is the Enemy of Security
For personal use only Complexity Complexity isisthe the Enemy Enemyof Security of Security
Slide 89: Q&A
For personal use only Q&A
Slide 90: Contact details
data3.com For personal use only 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited