Slide 1: FY25 Interim Results Briefing
FY25 Interim Results Briefing Presented by Brad Colledge, MD/CEO Cherie O’Riordan, CFO 1
Slide 2: About Data#3
• ASX 200 listed IT Services and Solutions provider in Australia and the Pacific Islands • Our vision is to harness the power of people About and technology for a better future • 47 years evolving solutions and services to Data 3 # enable customers' success, combined with world-leading vendor techno
Slide 3: Agenda
Agenda 1H FY25 Highlights 1H FY25 Financial Performance IT Sector Trends FY25 Strategy & Outlook Q&A 3
Slide 4: 1H FY25 Highlights
1H FY25 Highlights 4
Slide 5: 1H FY25 Financial Highlights
1H FY25 Financial Highlights Gross Sales Gross Profit NPBT* $1.4B $143.6M $32.0M Up 7.4% Up 10.0% Up 4.1% EBIT* Basic EPS Dividends per share $26.0M 14.43 cents 13.10 cents Up 4.6% Up 4.2% Up 4.0% Payout ratio of 90.8% *Underlying NPBT growth of 7.0% and underlying EBIT growth of 8.1% after adding b
Slide 6: 1H FY25 Overview
1H FY25 Overview Gross Sales Gross Sales Recurring People 5-year CAGR Gross Sales $1.4B 14.6% 70% (FY24: 67%) 1,400+ • In line with strategy, strong sales growth in Managed and Key awards + certifications Maintenance Services and Software Solutions, supporting recurring Gross Sales • HRD Employer of
Slide 7: 1H FY25 Operational Highlights
1H FY25 Operational Highlights Cloud Software Security Growth infused with AI Services Fastest growing solution Cloud is now ubiquitous in our Maintenance, Professional and and top customer priority customer solutions Managed Services ISO 27001 certified Working Capital Customer Experience Global Ve
Slide 8: Vendor Awards
Vendor Awards Leading together: Data#3’s Data#3 clinches triple crown Data#3 sets the standard in award-winning partnership at HP Partner Awards: Amplify, Modern Workplace, securing with HPE and Aruba Sustainability, and Poly Growth multiple Cisco awards Excellence recognised Data#3 wins Customer Da
Slide 9: 1H FY25 Financial Performance
1H FY25 Financial Performance 9
Slide 10: Sustained growth in earnings and Gross Sales
Sustained growth in earnings and Gross Sales Total Gross Sales & Other Revenue ($M) NPBT ($M) 1500 1,419.4 35 32.0 1,321.9 30.8 1300 30 1,166.1 24.6 25 1100 999.3 20 18.5 856.7 900 13.9 718.9 15 12.7 700 10 500 5 1H20 1H21 1H22 1H23 1H24 1H25 1H20 1H21 1H22 1H23 1H24 1H25 Basic EPS (cents) DPS (cent
Slide 11: Gross margin and Gross profit
Gross margin and Gross profit $M 1H FY25 1H FY24 Growth Improved overall Product Gross Sales 1,207.3 1,143.1 5.6% gross margin in 1H FY25, despite Product Gross Profit 69.2 64.9 6.7% competitive market conditions. Product Margin on Gross Sales 5.7% 5.7% - Services Gross Sales 205.4 172.2 19.3% Stron
Slide 12: Sales by functional area – Services
Sales by functional area – Services 1H FY25 Change Services Gross Sales & Gross Profit ($M ) Business unit Gross Sales vs. ($M) 1H FY24 200 Total Gross Sales Total Gross Profit 80.0 70.0 150 60.0 Business Aspect Consulting 14.7 (8.6%) 50.0 100 40.0 Project Services 42.2 9.9% 50 30.0 0 20.0 Maintenan
Slide 13: Sales by functional area – Product
Sales by functional area – Product • Software Solutions growth driven by demand for security products, cloud subscriptions and Adobe, particularly in the education and public sectors. Also, higher adoption and services rebates aligned with 1H FY25 Change vendor incentive programs. Business unit Gros
Slide 14: Reconciliation of Gross Sales to Statutory Revenue
Reconciliation of Gross Sales to Statutory Revenue $M 1H FY25 1H FY24 Growth Certain revenues are presented on a net basis following a change in Gross Sales* 1,412.8 1,315.3 7.4% revenue accounting policy in FY24. Gross Profit 143.6 130.6 10.0% Margin on Gross Sales 10.2% 9.9% 0.3pp • Statutory reve
Slide 15: 1H FY25 Financial Results – Profit and Loss
1H FY25 Financial Results – Profit and Loss Consolidated Profit & Loss 1H FY25 1H FY24* Change Change $’000’s Includes Software Solutions & vendor delivered Maintenance Support Revenue and Other income (ex 391,322 398,876 (7,554) -1.9% revenues presented on a net basis interest) Cost of goods sold 2
Slide 16: 1H FY25 Financial Results – Balance Sheet
1H FY25 Financial Results – Balance Sheet Consolidated Financial Position 31 December 2024 30 June 2024 $’000’s Payments relating to May/Jun 24 sales peak made Cash 131,008 276,381 Q1 FY25 Other current assets 250,772 547,733 Trade debtors higher in June with EOFY sales peak. Average Day Sales Outst
Slide 17: 1H FY25 Financial Results – Cash Flow
1H FY25 Financial Results – Cash Flow Consolidated Cash Flow 1H FY25 1H FY24 Change Change % Operating cash outflows in 1H FY25 returned $’000’s to more normal levels (1H FY24 outflows abnormally high due to normalisation of post pandemic working capital) Cash flows from operating activities (123,81
Slide 18: Positive Trend in Operating Leverage
Positive Trend in Operating Leverage Internal expenses (Staff & Operating costs $M) Operating and staff cost increases 100.0% 120 1H FY24 Staff costs & Opex 106.4 95.0% 100 Redundancy costs 90.0% IPT Projects 80 Billable Services staff costs 85.0% 60 General wage increases (6%) 40 80.0% Depreciation
Slide 19: IT Sector Trends
IT Sector Trends 19
Slide 20: 2025 Australian Technology Industry Trends
2025 Australian Technology Industry Trends1 IT Industry Growth Software Devices Spend on IT expected to grow 8.7% in 2025 13.4% growth expected 9.1% growth expected Driven by spend relating to GenAI adoption IT Services Data Centre Communication Services 7.2% growth expected 11.3% growth expected Or
Slide 21: FY25 Strategy and Outlook
FY25 Strategy and Outlook 21
Slide 22: Strategic Framework
Strategic Remarkable Framework People Innovative Customer Exceptional Solutions Success Performance Operational Excellence 22
Slide 23: Integrated Solutions embedded with AI
Integrated Solutions embedded with AI Multi-cloud Modern Security Data & Connectivity Workplace Analytics Modern Data Centre Cloud Security IT-OT Networking Public Cloud Collaboration Business Analytics Data Security and Privacy Software-Defined Networks Private Cloud End User Devices Customer Manag
Slide 24: The Opportunity
The Opportunity $500Bn1 91%2 73%3 in global AI-driven facing the challenge of becoming a “truly sustainable infrastructure by 2027 building a multi-cloud strategy and responsible business” is a top priority 73%4 Millions5 1. IDC FutureScape report 2024 2. Innovation Catalysts, Dell Technologies, Feb
Slide 25: Glencore Technology
Glencore Technology The IT industry is evolving at such a pace that it’s hard Business Problem to stay current on emerging • Legacy disparate systems trends and technologies, so having experts in this field • End of support and being able to get trusted • Time consuming data gathering advice is a wo
Slide 26: Microsoft Channel Incentives
Microsoft Channel Incentives Cloud Solution Provider (CSP) Copilot Security Azure Small Medium and Corporate With Scale and Automation Migrations Vendor Partners
Slide 27: Data#3 Competitive Advantages
Data#3 Competitive Advantages 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 Agility Our Financial Our
Slide 28: Long term customer relationships
Long term customer relationships 2000 $900 1900 $800 • Number of aggregated customer 1800 $700 groups by length of tenure over $600 a 14-year period 1700 $500 • Average spend has increased 1600 $400 significantly over time 1500 $300 • Over 300 customer groups with 1400 $200 tenure of over 14 years a
Slide 29: Outlook
Outlook Maintain Software Services Security Profitability Growth Multi-cloud and Device Growth Focus on CSP, Copilot, Azure Accelerated by Generative AI. and growth in vendor Continued interest in Multi-cloud, Networking, partners Managed Services and Devices 29
Slide 30: Our Services businesses continue to grow faster than the market
Our Services businesses continue to grow faster than the market with Security solutions leading the way. Data#3 is well placed to deliver sustainable growth in FY25. We have a growing market, pent up demand for devices, and increased interest in multi-cloud solutions and AI. Brad Colledge MD and CEO
Slide 31: Outlook
Consistent with previous practice, we do not intend to provide specific FY25 guidance. Outlook In line with previous years, we continue to expect a sales peak in the months of May and June, and our goal remains to continue to deliver sustainable earnings growth for our shareholders. 31
Slide 32: Q&A
Q&A 32
Slide 33: 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 34: data3.com
data3.com data3.com 13002323 1300 2828 23 23 Linkedin.com/company/data3 Linkedin.com/company/data3 Twitter.com/data3limited Twitter.com/data3limited Facebook.com/data3limited Facebook.com/data3limited YouTube.com/data3limited YouTube.com/data3limited