Slide 1: 2007 'brand'
For personal use only 2007 ‘brand’….
Slide 2: Agenda
For personal use only 1. 2008 1h ‘in a nutshell’ 2. financial performance 3. outlook for full year 4. spotlight on licensing solutions
Slide 3: 1. 1h 'in a nutshell'
For personal use only 1. 1h ‘in a nutshell’
Slide 4: 1h 'in a nutshell' - Chairman's comment
...1h ’in a nutshell’.. For personal use only “We are delighted to continue the run of ‘best ever’ performances we have delivered over the past five years. The interim dividend of 18 cents per share is a 29% increase on the previous corresponding period. In a market where the balance between skills
Slide 5: 1h 'in a nutshell' key points
...1h ’in a nutshell’.. For personal use only Key Points: • revenue up 16% • software licensing solutions up 25% • infrastructure solutions up 8% • people solutions up 18% • gross margin % held at 20.4% • expenses held at 85.2% of gross margin • ‘cross-sell’ index up at 2.25 • npat of $3.7m up 22% •
Slide 6: 2. financial performance
For personal use only 2. financial performance
Slide 7: the top line
...the top line For personal use only 200 150 $M 100 revenue + 16% to $157.3m 50 under contract + 19% to $90.6m 0 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 Total revenue Under contract 40 $ % 20 0 1H 1H 1H 1H gross margin $ + 16% GM $ 19.716 23.198 27.499 32.01 gm% held at 20.4% of revenue GM % 20
Slide 8: the middle line
staff expenses operating expenses 75 20 For personal use only % 70 % 10 65 0 2004/05 2005/06 2006/07 2007/08 2004/05 2005/06 2006/07 2007/08 as % GM 67 68 68.4 70.7 as % GM 19.9 17.4 16.9 14.6 staff + operating expenses 88 % 86 84 2004/05 2005/06 2006/07 2007/08 as % GM 86.96 85.37 85.25 85.22 ...th
Slide 9: the bottom line
net profit after tax eps and dps 4 25 20 3 15 For personal use only $M 2 cents eps 10 dps 1 5 0 0 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 eps + 15.5% to 22 cents + 22% to $3.7m dps + 29% to 18 cents 75% payout of npat cashflow 20 15 10 $M 5 operating c
Slide 10: (historical) yield
…(historical) yield For personal use only Yield Company AFR 7/3/08 Data#3 6.78% Oakton 6.66% SMS 4.89% ASG 3.60% Commander 16.67% Computercorp 0%
Slide 11: the areas of specialisation - Laurence Baynham
…the areas of specialisation For personal use only Laurence Baynham …group general manager • BA Business (Hons) - Uni of East London • 25 years in ICT Industry – sales and management • Joined Data#3 in 1994 • Responsible for initiating • Licensing Solutions • JVs into Qld Government software & hardw
Slide 12: the areas of specialisation
...the areas of specialisation For personal use only Software Licensing Solutions software licensing and software asset management to optimise the acquisition and management of software licensed in volume from global vendors Infrastructure Solutions the design, procurement, deployment, support and o
Slide 13: revenue trends
...revenue trends For personal use only 80 60 $M 40 20 licensing + 25% to $62.4m 0 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 Softw are Licensing Solutions revenue 80 60 $M 40 infrastructure + 8% to $73.6m 20 0 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 Infrastructure Solutions revenue 25 20 15 $M
Slide 14: performance vs expected
...performance vs expected For personal use only Software Licensing Solutions market leadership; double digit growth; similar margins exceeding expectations Infrastructure Solutions single digit growth; issues with skills shortage meeting expectations People Solutions high double digit growth; margi
Slide 15: 3. outlook for full year
For personal use only 3. outlook for full year
Slide 16: assumptions for full year
…assumptions for full year For personal use only Macro economy remain positive given continued strength in corporate profitability …signs of pressure on corporate profitability Customer attitude to ICT ICT Solutions are strategic and investment will be maintained …signs of pressure and pricing is co
Slide 17: recruitment ex CDR
….recruitment ex CDR For personal use only Data#3 accelerates organic growth recruiting over 40 people previously with Commander Significantly enhances presence outside Queensland and opens new offices in Adelaide and Perth BRISBANE, Australia — 22 February 2008
Slide 18: recruitment ex CDR
….recruitment ex CDR For personal use only Location Area of # people Skills specialisation Western Australia Licensing 5 Management and sales South Australia Licensing 5 Management and sales Infrastructure 9 Management, sales and solution design Victoria Infrastructure 7 Sales, design and solution d
Slide 19: what does it mean?
….what does it mean? For personal use only In broad terms: • new customers and revenues • the best people from CDR • full national footprint increasing scale outside Qld • opportunity to gain market share and improve profit margins in a full year • ‘acquisition like’ without integration, cultural an
Slide 20: outlook for full year
….outlook for full year For personal use only “There is potential for the market to tighten in the second half as the global finance sector issues play out and our focus has been to recruit key management and sales professionals to increase our market coverage and share” “The strong first half under
Slide 21: 4. spotlight on licensing
For personal use only 4. spotlight on licensing
Slide 22: Licensing spotlight agenda
For personal use only 1. introducing Brad Colledge 2. licensing explained 3. historical performance 4. sustaining performance
Slide 23: introducing Brad Colledge
…introducing Brad Colledge For personal use only General Manager Licensing Solutions • B. Business Management (QUT - 1988) • Graduate program NCR Australia 1989 • IT Industry for 19 years • Joined Data#3 in 1995 • Started Software Licensing team in 1995 in conjunction with Laurence Baynham • Grown R
Slide 24: licensing explained
…licensing explained For personal use only Software Licensing Solutions: Provides • volume licensing from vendors leading the market globally • Microsoft, Symantec, Adobe, Citrix, VM Ware, Computer Associates, IBM, Trend Micro, McAfee • world class Software Asset Management consulting services • Mic
Slide 25: 1h historical performance
…1h historical performance For personal use only 70 $M % 20 Proven year on year growth every year for -30 1H 03/04 1H 04/05 1H 05/06 1H 06/07 1H 07/08 last 12 years re ve nue 19.9 27.7 39.9 49.8 62.4 grow th 20 39 44 25 25 Data#3’s differentiators: • Deep understanding of customers’ requirements • E
Slide 26: sustaining performance
…sustaining performance For personal use only Imperatives • Continued investment in people (expertise) • Continue to achieve relevant vendor certifications • Efficient operational processes • Effective IT systems Opportunities • Gain ROI from recent geographic growth • Increase focus on mid size org
Slide 27: 2007 'brand'
For personal use only 2007 ‘brand’….