Slide 1: Data#3 (DTL) 2011 results presentation
For personal use only # Data 3 (DTL) 2011 results presentation 22 August 2011 1
Slide 2: Best ever performance across all key metrics
Best ever performance across all key metrics For personal use only • Total revenue up 16% to $697.8M • Product revenue up 14% to $586.4M • Services revenue up 29% to $109.8M • 59% under contract • Sales gross margin up from 15.0% to16.1% • EBIT growth faster than revenue, up 34% to $20.5M • EBIT mar
Slide 3: Track record of growing revenue & market share
Track record of growing revenue & market share For personal use only Total revenue ($M) Product revenue ($M) 800 697.7 700 5 year CAGR 24% 5 year CAGR 26% 586.4 599.2 600 513.6 600 530.5 500 450.0 363.7 400 400 281.8 239.6 285.1 300 185.0 214.4 200 200 100 0 0 2006 2007 2008 2009 2010 2011 2006 2007
Slide 4: Track record of growing profit & earnings
Track record of growing profit & earnings For personal use only EBIT ($M) NPAT ($M) 25 20 5 year CAGR 21% 20.5 5 year CAGR 21% 15.0 20 15 15.2 10.9 15 12.2 13.4 9.1 9.8 9.9 10 7.2 10 7.8 5.7 5 5 0 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 EPS (cents) 100 91.4 5 year CAGR 20% 80 7
Slide 5: Track record of growing shareholder returns
Track record of growing shareholder returns For personal use only ROE (%) 30 June share price ($) 60% 14 13.24 49.7% 50% 42.8% 42.1% 41.8% 12 37.7% 10 40% 33.8% 8.01 8 6.00 6.00 30% 5.60 6 20% 3.70 4 10% 2 0% 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 DPS (cents) 80 77.0 • Sector
Slide 6: Strong balance sheet and cash flows
Strong balance sheet and cash flows For personal use only NTA ($M) Net operating cash flow ($M) 30 25.6 80.0 66.8 20.9 59.6 20 17.9 60.0 14.6 16.0 12.3 40.0 22.4 20.0 10 0.0 -20.0 2H '09 1H '10 2H '10 1H '11 2H '11 0 -40.0 -21.9 2006 2007 2008 2009 2010 2011 -60.0 -54.8 Cash ($M) 64.3 60 56.1 57.0 •
Slide 7: Our business
For personal use only Our business 7 6
Slide 8: What we do
What we do Volume software licensing and asset For personal use only management Software Licensing Infrastructure Workforce design and recruitment & deployment contracting projects People Integrated Solutions Solutions Customer Outsourced/Cloud Managed Product Lifecycle infrastructure Services Solut
Slide 9: Our national footprint
Our national footprint For personal use only Brisbane Head Office Warehouse & Configuration Centre Perth Office Canberra Office Adelaide Office Sydney Office Warehouse & Melbourne Configuration Centre Office Datacentre Warehouse & Configuration Centre 9 8
Slide 10: Satisfaction improving as we increase people numbers
Satisfaction improving as we increase people numbers For personal use only 638 600 502 638 permanent 400 352 277 42 casual 200 352 contractors 0 >1,000 people 2010 2011 Contractors 2010 2011 Permanent +27% +27% People satisfaction /5 % Recommend Data#3 as 5 employer of choice 4.0 4.1 3.9 4.0 100 4 9
Slide 11: Customer focus in mid to large corporate and government
Customer focus in mid to large corporate and government For personal use only Mid to large corporate Government 11 11
Slide 12: Strong partnerships with leading global suppliers
Strong partnerships with leading global suppliers For personal use only 12 12
Slide 13: Performance of the specialist businesses
For personal use only Performance of the specialist businesses 13 13
Slide 14: Software Licensing – continuing track record of growth
Software Licensing – continuing track record of growth For personal use only Revenue ($M) 356.7 350 319.6 292.8 • Total revenue up 12% to $356.7M 300 • 5 year CAGR of 34% 250 • 16th year of consecutive growth • On Microsoft’s worldwide partner 200 engagement board 143.3 • First sales of Microsoft’s
Slide 15: Infrastructure Solutions – continuing track record of growth
Infrastructure Solutions – continuing track record of growth For personal use only Revenue ($M) 301.1 300 • Total revenue up 21% to $301.1M 248.3 250 • Products up 18% to $231.3M • Project services up 58% to 197.6 $34.6M 200 174.9 • Managed services up 18% to 148.3 $35.1M 150 132.7 • 5 year CAGR of
Slide 16: People Solutions - returns to growth
People Solutions - returns to growth For personal use only Revenue ($M) 44.7 45 38.2 39.2 38.3 40 35 30.7 • Total revenue up 25% to $38.3M 30 • 5 year CAGR of 9% 24.6 25 • Contractor numbers up 27% 20 • New national leadership 15 • New operational systems • Lower operating costs 10 5 0 2006 2007 200
Slide 17: Continued reinvestment to drive productivity and efficiency
Continued reinvestment to drive productivity and efficiency For personal use only 90 Internal cost ratio (%) 88 86 • Internal cost ratio [internal staff & operating expenses as % of 84 gross margin] improved from 82 83.4% to 81.9% 80 • Internal systems investment up 78 12% on previous corresponding
Slide 18: Strategy to sustain performance
For personal use only Strategy to sustain performance 18 18
Slide 19: Well articulated and connected strategy
Well articulated and connected strategy For personal use only 19 19
Slide 20: Simple business model well executed
Simple business model well executed For personal use only • Addressing largest ICT market segments • Reseller for leading global vendors • Great people with market leading skills • Sales focused/customer ‘intimate’ • Move quickly to opportunity • Working capital funded from cashflow • Invest to grow
Slide 21: A complete solution for customers
A complete solution for customers For personal use only 5 Areas of Multiple Delivered across 16 Solution Sets Offerings within Specialisation multiple each Solution customer Licensing Software Licensing Set consumption Solutions platforms Asset Management Integrated Business Productivity & Solutions
Slide 22: A complete solution for customers
A complete solution for customers For personal use only 22 22
Slide 23: A complete solution for customers
A complete solution for customers For personal use only Private Trusted Public Product Expertise Solution Outsource Cloud Cloud Cloud Software Licensing Asset Management Business Productivity & Knowledge United Communications Identity Management Network Platforms Consolidation and Virtualisation Sys
Slide 24: FY12 outlook
For personal use only FY12 outlook 24 24
Slide 25: Environment
Environment For personal use only Macro environment - End user technology + NBN Global economy Need for productivity Potential flow on to Need for efficiency Australia Micro environment + New technologies Large market Support from partners Market coverage Customers looking for - Early in investment
Slide 26: Investing for growth
Investing for growth For personal use only • More people to increase capacity & capability – up 18% on FY11 • Infrastructure to support operations – up 14% on FY11 • Supply chain to lower costs in volume areas • New and refurbished premises to provide market differentiation and enhance people satisf
Slide 27: Anticipate slowing growth in line with market for Software Licensing
Anticipate slowing growth in line with market for Software Licensing For personal use only • Expect to hold margins • Microsoft reseller program restructuring over 3 years • Anticipate little impact on gross margin • Possible cash flow impact through change in billing cycles • New players may compet
Slide 28: Anticipate growth in changing product procurement market
Anticipate growth in changing product procurement market For personal use only • Expect to continue to gain market share • Traditional PC market flat • Solid growth in tablets in the enterprise • Margins expected to hold • Increasing opportunity in ‘Desktop as a service’ • Winners & losers with cons
Slide 29: Anticipate strong growth in integration services
Anticipate strong growth in integration services For personal use only • Expect project opportunity to increase as customers invest in business enablement • Expect partners to continue to require greater investment as part of certification • Expect margins to hold • Expanding strategic consulting pr
Slide 30: Anticipate solid growth in managed services
Anticipate solid growth in managed services For personal use only • Expect outsourcing opportunity to increase as customers lower operating expense and deal with skill shortages • Expect opportunity for maintenance contracts to grow with product sales volumes • Seeing customers focus on user enablem
Slide 31: Anticipate solid growth in recruitment and contracting
Anticipate solid growth in recruitment and contracting For personal use only • Expect strong overall market opportunity • Expect margins in Qld Govt to decline in 2H with implementation of central purchasing model • Expect growth in NSW and Victoria in commercial sector • Expanding HR reselling and
Slide 32: FY12 outlook summary
FY12 outlook summary For personal use only .....the company’s financial objective for 2012 is to at least equal the performance of the previous year. This assumes stabilisation of the current global market conditions and means steady underlying growth given increased internal investment, particularl
Slide 33: Data#3 is well positioned to grow
Data#3 is well positioned to grow For personal use only • Global uncertainty still to play out • IT Services market has attractive underlying fundamentals • Data#3 operates in large markets ($22.5B in 2011) • Data#3 has strong and interdependent relationships with global market leaders • Data#3 has
Slide 34: Q&A
For personal use only Q&A 34 24
Slide 35: Appendix – Financial summary
Appendix 1 – Financial summary 2011 2010 ($’000) ($’000) % Change For personal use only Revenue by segment: Product $586,354 $513,585 +14% Services $109,804 $85,015 +29% Other revenue $1,630 $615 Total Revenue $697,788 $599,215 +16.5% Revenue by area of specialisation: Software Licensing $356,709 $3
Slide 36: Appendix - Definitions
Appendix 2 - Definitions For personal use only Cost Ratio: Internal staff and operating costs as % of GM$ Private Cloud: Data#3 designed and built for exclusive customer use either on or off the customer’s premises; may be either customer or Data#3 owned & operated Data#3 Trusted Cloud: Infrastructu
Slide 37: 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 38: For personal use only
For personal use only 38