Slide 1: Results and outlook presentation
For personal use only Results and outlook presentation 1H 2009 performance and outlook for full year John Grant MANAGING DIRECTOR -------------------------------- Brem Hill CHIEF FINANCIAL OFFICER March 2009
Slide 2: Content
Content For personal use only • Quick refresher on Data#3 • 1H performance – Financial – Operational • Full year outlook
Slide 3: Quick refresher on Data#3
Quick refresher on Data#3 For personal use only • Commenced operations in 1977 • Listed on ASX in 1997 • National ICT solutions company • $364M revenue in 2007/08 • 460 staff / 360 contractors • Mid to large corporate and government customers
Slide 4: Quick refresher on Data#3
Quick refresher on Data#3 For personal use only Software Optimise acquisition & Licensing management of software contract & permanent Solutions licensed in volume recruitment; performance management systems People Infrastructure Solutions Solutions Design, procure & deploy network & data centre Outs
Slide 5: 1H financial performance
For personal use only 1H financial performance
Slide 6: 1H - Chairman's comment
1H - Chairman’s comment For personal use only “We are delighted to extend the run of ‘best ever’ performances to six years. The interim dividend of 20 cents per share is an 11% increase on the previous corresponding period and, in an increasingly challenging market, indicative of the inherent resili
Slide 7: 1H – Income Statement
1H – Income Statement Half-Year Half-Year Change 2008/09 2007/08 2007/08 to For personal use only Consolidated Income Statement $’000 $’000 2008/09 Sales revenue 116,502 62,371 + 87% − Software Solutions 91,918 73,575 + 25% − Infrastructure Solutions 21,055 20,779 + 1% − People Solutions Other reven
Slide 8: 1H - Balance Sheet
1H - Balance Sheet December 2008 June 2008 December 2007 $’000 $’000 $’000 For personal use only Current assets Cash and cash equivalents 8,822 17,014 6,973 Trade and other receivables 65,925 68,238 41,797 Inventories 5,805 6,601 3,620 Other 2,152 1,379 1,157 Total current assets 82,704 93,232 53,54
Slide 9: 1H - Cash
1H - Cash For personal use only Half-Year Half-Year Consolidated Cash Flow 2008/09 2007/08 $’000 $’000 Statement Net cash outflow from operating activities* (2,887) (6,089) Net cash outflow from investing activities** (578) (322) Net cash outflow from financing activities*** (4,727) (3,983) Net decr
Slide 10: 1H – Consolidated revenue
1H – Consolidated revenue For personal use only 250 200 150 $M 100 50 0 1H 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 2008/09 Total revenue grew by 46% to $230 million
Slide 11: 1H – Areas of specialisation
1H – Areas of specialisation For personal use only 120 100 80 1H 2005/06 60 $M 1H 2006/07 40 20 1H 2007/08 0 1H 2008/09 Software Infrastructure People Software Solutions …………… up 87%, Infrastructure Solutions …….. up 25% People Solutions ……………… up 1%
Slide 12: 1H - Expenses
1H - Expenses 88 For personal use only 87 86 % 85 84 83 82 1H 1H 2004/05 1H 2005/06 1H 2006/007 1H 2007/08 2008/09 Cost ratio (Internal staff costs & operating expenses as a percentage of gross margin) increased from 85.2% to 87.5% (additional expense in People Solutions of $1M cf pcp)
Slide 13: 1H - NPAT
1H - NPAT For personal use only 5 4 $M 3 2 1 0 1H 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 2008/09 Net profit after tax ………… up 9% to $4.0M (People Solutions profit contribution declined by $800K cf pcp)
Slide 14: 1H - Earnings and dividends
1H - Earnings and dividends For personal use only 30 25 20 Cents 15 10 EPS 5 0 DPS 1H 1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08 2008/09 Earnings to 26.16 cents ………… up 9% Dividends to 20.0 cents ………… up 11% Payout ratio ………………………. up to 76%
Slide 15: Share price
Share price For personal use only Solid investor support has seen the share price remain relatively strong in a difficult investment market
Slide 16: Difficult market effected….
Difficult market effected…. For personal use only • People Solutions • Flat revenues – strong Q1 then ‘collapse’ • $1M extra expense over pcp • $800K reduction in profit contribution over pcp • Parts of Infrastructure Solutions • ‘Business as usual’ technology refresh • Projects
Slide 17: Offset by….
Offset by…. For personal use only • Software Licensing Solutions • Revenues + 87% • NSW Department of Health • Whole of Federal Government • Parts of Infrastructure Solutions • Datacentre solutions • Contract product procurement • Managed Services
Slide 18: 1H operational performance
For personal use only 1H operational performance
Slide 19: Strategy
For personal use only Strategy
Slide 20: Performance…
Performance… For personal use only Legend STATUS CODE achieved; on or ahead of plan work in progress; mainly on plan more work needed; behind plan
Slide 21: Remarkable people…
Remarkable people… For personal use only INITIATIVE STATUS implementing programs in our People Plan effective performance and career planning align individual & organisational cultures expand leadership development increase individual expertise OVERALL
Slide 22: Outstanding solutions
Outstanding solutions For personal use only INITIATIVE STATUS solutions framework & (pdo)2 offerings on technology adoption trend increase revenue under contract increase win rates leverage vendors OVERALL
Slide 23: Organisational excellence
Organisational excellence For personal use only INITIATIVE STATUS increase business efficiency improve individual productivity use more online to improve customer service minimise risk enhance CSR OVERALL
Slide 24: Full year outlook
For personal use only Full year outlook
Slide 25: Full year outlook
Full year outlook For personal use only “The outlook is difficult to predict as shareholders would understand however it remains our intention to do all that we can to at least equal the earnings result of the previous year and to remain strongly positioned for an improving market” Richard Anderson
Slide 26: Full year outlook
Full year outlook For personal use only – Most indicators point to an increasingly difficult market – Why should we be immune? • Demonstrated we can win in the market • Skilled and engaged team • Our solutions appeal to very large proportion of ICT spend • Vendor investment in creating demand • Stro
Slide 27: Full year outlook
Full year outlook For personal use only – Software Licensing Solutions • Revenues flow from whole of Federal Government • Slowing of commercial sector • Solid revenue growth at lower margins – Infrastructure Solutions • Continued pressure on pricing • Opportunity to leverage general industry ‘stress
Slide 28: Full year outlook
Full year outlook For personal use only – Course to chart • Keep short term returns ahead of like alternative investments • Position strongly for any upswing – Full year objectives • Dividends to shareholders of at least 46 cents per share • NPAT at least equal to pcp – Confirmed by 1H and forward e
Slide 29: Summary
Summary For personal use only – Strong first half • Revenue growth of 46% demonstrates marketshare gain • Difficulties in People Solutions business impacted cost ratio and profit • Dividends of 20 cents ahead of expectations – Market conditions • Unpredictable but have much in our favour – Full year
Slide 30: For personal use only
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