Data#3 Limited. · ASX:DTL
Data#3 — Investor Day (November 2021)
74 slides from Data#3's investor day presentation, Nov 9, 2021
Slide 1: For personal use only
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Slide 2: Laurence Baynham, CEO & Managing Director
For personal use only Laurence Baynham CEO & Managing Director
Slide 3: Agenda
Agenda For personal use only 01 Introduction Laurence Baynham 02 Company Overview Laurence Baynham 03 Financials Brem Hill 04 People Tash Macknish and Janelle Phillips 05 Q&A 06 Customer Experience Garrett MacDonald
Slide 4: Agenda
Agenda For personal use only 07 Solutions and Vendors Brad Colledge and Jelaine Doncaster 08 Customer Success John Tan 09 Q&A 10 Cybersecurity Michael Bowser 11 Services Growth Carlos Gouveia 12 Q&A 13 Summary and Close Laurence Baynham
Slide 5: Data#3 in FY21
Data#3 in FY21 For personal use only Revenue Years in business People Listed on the ASX $1.96B 40+ 1,200+ 1997 Customers Offices across Recurring Revenue Australia and Fiji Public Sector and Large Corporate 9 62% • • Health, Education and Resources industries Key awards + certifications Average tenu
Slide 6: FY22 Outlook
FY22 Outlook For personal use only Fast start IT outlook Position in Accelerating FY21 $3M profit Gartner predict the market Services backlog will be Australian IT market to Positioned to Services growth realised in FY22 grow by 4% to over capitalise on growth and strategic $100 billion in 2021 and
Slide 7: Digital Transformation
Digital Transformation For personal use only “Every industry and every organization will have to transform itself in the next few years. What is coming at us is bigger than the original internet.” Tim O'Reilly, Founder and CEO, O'Reilly Media Satya Nadella Microsoft
Slide 8: Solutions framework: customer success and organisational excellence
Remarkable For personal use only People Innovative Solutions Customer Exceptional Solutions Framework Success Performance Organisational Excellence 8
Slide 9: For personal use only
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Slide 10: Brem Hill, Chief Financial Officer
For personal use only Brem Hill Chief Financial Officer
Slide 11: Sustained revenue growth, boosted by cloud
Sustained revenue growth, boosted by cloud For personal use only Strong revenue growth fuelled by software licensing and cloud- based solutions. Total revenue ($M) 14.4% CAGR (FY15 to FY21). Total FY21 revenue includes $792M of public cloud revenues. Now 40% of total revenue. Approximately 62% of re
Slide 12: Changing revenue mix
Changing revenue mix For personal use only Revenue trend by functional area ($M) Business unit FY21 FY21 revenue revenue ($M) growth Infrastructure Solutions 467 + 13% Software Solutions 1,249 + 27% Consulting 18 + 9% Project Services 63 + 7% Support Services 96 + 11% People Solutions (Recruitment)
Slide 13: Revenue commentary
Revenue commentary For personal use only Significant interdependencies: Software & Infrastructure revenues depend on Services Mandatory technical accreditations & certifications with key vendor partners Ability to design, deploy & support vendor offerings is essential Approx. 500 technical sta
Slide 14: Revenue commentary
Revenue commentary For personal use only Opportunities for accelerating Services growth: Consulting Positioned for expansion and profitable growth Project Services Increase in large integration project activity Managed Services Transformational change completed in FY21 Maturation of offering
Slide 15: Gross margin and Gross profit
Gross margin and Gross profit For personal use only Overall Gross Margin % varies with the changing revenue mix. Business unit FY21 FY21 Relative Gross Margin % revenue revenue Strong growth in software licensing and ($M) growth LOW MED HIGH public cloud revenues relative to services in recent yea
Slide 16: Operating leverage
Operating leverage For personal use only Short term factors: • Supply chain constraints expected to continue throughout FY22 • Increased wage pressure and resource constraints • Partial return to pre-COVID operating models, including some increase in travel expense • Investment in new Microsoft Dyna
Slide 17: Sustained earnings growth and shareholder return
Sustained earnings growth and shareholder return For personal use only Basic EPS (cents) High dividend payout ratio Average payout approx. 90% Substantial growth in market capitalisation $732M at 30/6/21 S&P/ASX 300 index (XKO) S&P/ASX All Technology index (XTX) Dividends per share (cents) S
Slide 18: Strong financial position
Strong financial position For personal use only Strong balance sheet with no borrowings. Cash flow ‘seasonality’ due to timing differences in collections and payments around 30 June. Efficient working capital model, with short or This usually generates operating cash inflow in negative working capit
Slide 19: Tash Macknish and Janelle Phillips
For personal use only Tash Macknish Group Manager - Organisational Development & Human Resources Janelle Phillips General Manager - People Solutions
Slide 20: Data#3 OD&HR FY22 Plan on a Page
Data#3 OD&HR FY22 Plan on a Page For personal use only Purpose Vision Values Stakeholders Strategy OD&HR Strategic To enable our To harness the Honesty Our People Our strategy is Priorities customers’ power of people Excellence Our Customers to Embrace Talent & Capability success. and technology Agi
Slide 21: Data#3's Core Values
Data#3’s Core Values For personal use only Honesty Excellence Agility Respect Teamwork
Slide 22: People Satisfaction
People Satisfaction For personal use only 5 4.54 4.47 4.49 4.5 4.38 4.35 4.2 4.13 4.13 4.04 4.04 4 3.5 3 2.5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 23: 2021 Achievements
For personal use only 2021 Achievements
Slide 24: Data#3's ESG Pillars
Data#3’s Environmental, Social & Governance (ESG) Pillars For personal use only
Slide 25: For personal use only
” or porsonal use Only.
Slide 26: Community giving and volunteer hours
For personal use only • $100K • 400 volunteer hours
Slide 27: For personal use only
For personal use only
Slide 28: People Solutions: resourcing and talent sourcing
For personal use only • Resourcing Services Contracting, Permanent Recruitment and Staff Augmentation • Talent Sourcing Enables our customers in delivering the digital future • War For Talent Data#3 annual growth 6% / Technology Industry annual Growth 4.3%* *ACS Australia’s Digital Pulse 2021 | Futu
Slide 29: For personal use only
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Slide 30: Garrett MacDonald, Chief Marketing Officer
For personal use only Garrett MacDonald Chief Marketing Officer
Slide 31: Data#3's Customers in FY21
Data#3’s Customers in FY21 For personal use only Number of Active Top 100 Customers deliver 80% of the total revenue Customers delivering recurring revenue Customers comes from; 5157 67% 210 62% of the revenue customers ACT percentage of QLD percentage of VIC percentage of Total Data#3 NSW percentag
Slide 32: Customer Experience
For personal use only Customer Experience
Slide 33: Data#3's Customer Approach
Data#3’s Customer Approach For personal use only Land Adopt Expand Renew Average Spend by Average Spend By Year 10 >7X Year 5 >13X
Slide 34: Customer values and teams
For personal use only Marketing F&A Sales Culture The Customer Values Consulting Customer Success and Technical Communication Advice Services Teams
Slide 35: Customer satisfaction scores FY19-FY21
For personal use only FY20 FY21 FY19 4.15 4.28 4.34 *Scores are out of 5
Slide 36: For personal use only
For personal use only
Slide 37: Our Customers
For personal use only Our Customers
Slide 38: Customer Story: Sydney Football Stadium
Customer Story: Sydney Football Stadium For personal use only
Slide 39: Data#3 Customer Story
For personal use only Data’3 Customer Story “We accelerated in our team, and cloud was a critical part of that. We became a more agile organisation that could pivot as quickly as our clients needed us to.” Darren Warner, Head of IT, Knight Frank Australia. BG Knight Data’3 ota
Slide 40: Business Aspect Customer Story
For personal use only Business Aspect Customer Story “We wanted to push the college forward through its use of technology. Before we could work on digital transformation, we needed to address some of the low-hanging fruit, the quick wins.” Swain Kirk, Chief Information Officer,
Slide 41: Brad Colledge and Jelaine Doncaster
For personal use only Brad Colledge Executive General Manager Jelaine Doncaster General Manager - Software Solutions
Slide 42: Digital Transformation
For personal use only Digital Transformation Artificial Internet of Things 3D Printing Intelligence Foundation Layer Modern Data & Analytics Connectivity Multi-cloud Security Workplace
Slide 43: Integrated Solutions
Integrated Solutions 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 Private Cloud End Us
Slide 44: Solutions
For personal use only Solutions
Slide 45: #1 partner in Australia
For personal use only #1 partner in Australia #1 partner in Australia #1 partner in Australia 400+ other partnerships Top five partner in Australia 45
Slide 46: Spotlight on Microsoft
For personal use only Spotlight on Microsoft Microsoft is the market leader The market is evolving e.g; Public Cloud The market opportunity is huge Data#3 is the leader in Microsoft Solutions
Slide 47: Data#3 Microsoft Solutions Focus
Data#3 Microsoft Solutions Focus For personal use only Apps & Infrastructure Business Apps Azure Dynamics Customer Success Insert your desired text Data & Analytics here. M365 & Devices Security
Slide 48: John Tan, General Manager - Infrastructure Solutions
For personal use only John Tan General Manager - Infrastructure Solutions
Slide 49: Delivering the Digital Future requires different Delivery
Delivering the Digital Future requires different Delivery For personal use only
Slide 50: Lifecycle and Outcomes
For personal use only Lifecycle and Outcomes
Slide 51: Using and Adopting
For personal use only Using and Adopting
Slide 52: Success Economics
Success Economics For personal use only >5X CAC 25%+
Slide 53: Data#3 Customer Success
Data#3 Customer Success For personal use only • Customer Success Methodology • Talent focused on lifecycle • Data-Driven Platforms • Digital Strategy
Slide 54: For personal use only
“Data#3’s post implementation support For personal use only has been faultless. With large-scale events occurring at the MCG on a weekly basis, their professionalism in responding to and rectifying any issues has been outstanding. “In Data#3, we feel confident that we have a reliable, long-term tech
Slide 55: The Digital Future is brighter with a strong Customer Success focus
For personal use only The Digital Future is brighter with a strong Customer Success focus
Slide 56: For personal use only
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Slide 57: Michael Bowser, Executive General Manager
For personal use only Michael Bowser Executive General Manager
Slide 58: Cybersecurity
For personal use only Cybersecurity
Slide 59: Delivering a digital future
Delivering a digital future For personal use only My Role Executive General Manager Data#3 Operations, Security and Projects A member of the Data#3 Senior Leadership Team My background 34 years at Data#3 Technical, Sales and Management roles. Focus of this presentation Security and Data#3 – for our
Slide 60: Context
Context For personal use only Cybersecurity is one of 3 imperatives we have in the business for FY21 Cyber risk exists for Data#3, its Suppliers and its Customers. SECURITY CONTROLS DATA Applications GOVERNANCE TECHNICAL Infrastructure ASSETS People The RULES, The TOOLS Reputation policies and requi
Slide 61: Insight into the customer demand for Security
Insight into the customer demand for Security For personal use only Threats are real Cost balance Cyber maturity Being prepared Staying up to date Compliance Cyber security has been #1 customer priority for the last 7 years. (Data 3 Customer Survey) #
Slide 62: Where is the opportunity?
Where is the opportunity? For personal use only Advisory Consulting, Assessments, Planning. NIST Services Professional & Managed Identify Services Protect Detect Respond Recover Technology Software, Hardware Gartner estimate the Australian Market spend for Cyber Security will surpass $5b in 2021. Fr
Slide 63: Security in Data#3
Security in Data#3 For personal use only The Data#3 Benchmark Uplifting the level of security for our business Program of Work Increasing Technical & Governance Controls Improving staff awareness and culture Building our Identity in the market Security as part of all our sales narratives.
Slide 64: Carlos Gouveia, General Manager, Victoria and Tasmania
For personal use only Carlos Gouveia General Manager, Victoria and Tasmania
Slide 65: IT Services demand and supply
IT Services demand and supply For personal use only
Slide 66: Market demand
For personal use only Market demand • IT services to grow 8.6% in 2022 • Fastest growing tech market segments align to our core offerings with services attach: • Enterprise software • Data centre systems • Devices • Communication Services • Communication Services https://www.crn.com.au/news/gartners
Slide 67: Market Supply
For personal use only Market Supply • 60k IT roles required per annum for next 5 years vs 7k students graduating with IT degree in 2019 • Cloud and security skills in priority demand • Talent availability is the leading factor inhibiting technology adoption https://www.crn.com.au/news/gartners-top-i
Slide 68: Services aligned to Customer Success – Data#3 Velocity
Services aligned to Customer Success – Data#3 Velocity For personal use only Project Support Consulting Services Services
Slide 69: For personal use only
“The Data#3 team was working on-site For personal use only with us for a year and operated with us as one team working towards the best outcome for Hydro Tasmania. You only get that attitude when it is genuinely threaded throughout the organisation, and it is part of the organisation’s culture.” Dav
Slide 70: Data#3 Services
For personal use only Data#3 Services “The Azure Expert MSP certification is a badge of • Delivering the Digital Future in a flexible way distinction for Microsoft partners globally. based on the customer’s need • Skills vs project vs packaged service vs We’re pleased to award this distinction to Da
Slide 71: Uniting Vic.Tas
For personal use only Uniting Vic.Tas “By introducing the managed services from Data#3, we were able to deliver to critical deadlines at scale and work more efficiently to meet the needs of our users, who can in turn better serve the needs of our clients.” Chris Pivec Chief Information Officer Uniti
Slide 72: How are we transforming our services through Accelerate Services?
How are we transforming our services through Accelerate Services? For personal use only Accelerate Services All services incl BA Infrastructure + Maintenance Software
Slide 73: For personal use only
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Slide 74: Contact details
For personal use only www.data3.com.au 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited