Data#3 Limited. · ASX:DTL

Data#3 — FY2022 Earnings Presentation

32 slides from Data#3's earnings presentation, Aug 18, 2022

  1. Slide 1: FY22 Results Briefing

    FY22 Results Briefing 18th August 2022 1

  2. Slide 2: Agenda

    Agenda Data#3 Overview FY22 Operational Overview FY22 Financial Performance FY23 Strategy Customer Success Summary and Outlook 2

  3. Slide 3: FY22 Financial Highlights

    FY22 Financial Highlights Revenue Gross Profit NPBT $2.2B $218.2M $44.1M Up 12.1% Up 12.1% Up 19.4% NPAT Basic EPS Dividends per share $30.3M 19.61 cents 17.90 cents Up 19.1% Up 18.8% Up 19.3% Payout ratio of 91.3% 3

  4. Slide 4: FY22 Overview

    FY22 Overview Revenue Public Cloud Recurring People Revenue Revenue $2.2B $1.0B 66% 1,300+ Key awards + certifications • Strong result with good contributions across business units and regions, supported by growing pipeline of large integration project opportunities • HRD Employer of Choice – 7th ye

  5. Slide 5: Digital Transformation

    Digital Transformation Artificial Internet of Things 3D Printing Intelligence Foundation Layer Multi-cloud Modern Security Data & Analytics Connectivity Workplace 5

  6. Slide 6: Integrated Solutions

    Integrated Solutions 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 User Devices Internet of

  7. Slide 7: Strategic partnerships with global leaders

    Strategic partnerships with global leaders #1 partner in Australia #1 partner in Australia Significant investment in technical capability and certifications #1 partner in Australia Top five partner in Australia 400+ other partnerships with emerging vendors 7

  8. Slide 8: FY22 Operational Overview

    FY22 Operational Overview 8

  9. Slide 9: FY22 Operational Highlights

    FY22 Operational Highlights Multi-cloud Growth Security Growth Services $1.0B in Public Cloud Fastest growing solution Strong growth in Consulting and plus, Private Cloud growth and top customer priority Support Services improving ISO 27001 certified Gross Margin Customer Experience ERP System Inves

  10. Slide 10: FY22 Financial Performance

    FY22 Financial Performance 10

  11. Slide 11: Sustained revenue growth, boosted by cloud

    Sustained revenue growth, boosted by cloud Total revenue ($M) Total Public Cloud revenue ($M) 2500 1100 1,039.7 2,193.0 1000 Now 47% of total revenue 1,956.2 900 2000 791.6 1,625.9 800 1,415.6 700 1500 581.0 1,181.4 600 1,098.2 47% 983.2 500 1000 400 362.2 41% 267.8 300 36% 169.5 500 200 99.9 26% 23

  12. Slide 12: Changing sales mix

    Changing sales mix Revenue trend by functional area ($M) FY22 Change 2500 Business unit revenue vs. ($M) FY21 2000 Business Aspect Consulting 26.6 + 50.0% Project Services 66.6 + 5.0% 1500 Support Services 160.1 + 66.6% People Solutions (recruitment) 62.3 + 8.7% 1000 Total Services 318.4 + 32.7% 500

  13. Slide 13: Gross margin and Gross profit

    Gross margin and Gross profit Overall Gross Margin % varies with the changing Business unit FY22 FY22 Relative Gross Margin % revenue mix. revenue revenue LOW MED HIGH • Infrastructure Solutions impacted by ($M) growth inflated backlog. • Strong growth in software licensing and public cloud revenues

  14. Slide 14: Steady improvement in operating leverage

    Steady improvement in operating leverage Total gross profit ($M) & Total gross margin (%) Internal expenses (Staff & Operating costs $M) 250 25.0% 250 95.0% 218.2 188.0 194.7 90.0% 200 200 173.9 20.0% 158.9 160.1 146.6 85.0% 150 150 15.0% 80.0% 100 100 14.9% 14.5% 13.6% 12.3% 11.6% 75.0% 10.0% 10.0%

  15. Slide 15: Sustained earnings growth

    Sustained earnings growth NPBT ($M) Basic EPS (cents) 19.61 50 44.1 20 45 16.51 36.9 15.35 40 34.1 15 35 11.76 30 26.6 9.99 22.4 10 8.98 9.14 25 19.5 20.4 20 15 5 10 5 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 NPAT ($M) - excluding minority interests DPS (cents) 35 20

  16. Slide 16: Statement of profit or loss

    Statement of profit or loss • Revenue increased by 12.1% • Gross profit increased by 12.1% (from $194.7M to $218.2M) and total gross margin remained stable at 10.0% • Internal staff costs increased by 10.6% (from $138.3 million to $153.0 million) reflecting 6.6% headcount growth (predominantly in Se

  17. Slide 17: Balance sheet

    Balance sheet • Strong balance sheet with no borrowings • 4Q revenue spike (in line with normal customer spend patterns) inflated Trade receivables and Trade payables at year end • As in prior periods, this created a large temporary cash surplus at 30 June • Average DSOS of 28.1 days (FY21 = 27.7 da

  18. Slide 18: Working capital analysis

    Working capital analysis Working capital components 800,000 Efficient working capital model. 700,000 Short or negative working capital 600,000 cycles underpin self-funding of 500,000 business. 400,000 300,000 Inventory inflated due to backlog, 200,000 Other current assets but allocated to non-cancel

  19. Slide 19: Statement of cash flows

    Statement of cash flows • Cash flow ‘seasonality’ consistent with previous years • Timing differences in collections from customers and payments to suppliers around 30 June generate temporary cash surpluses • FY22 average daily cash balance $117.2M (FY21 = $126.6M) • Underlying ‘free cash’ is typica

  20. Slide 20: FY23 Strategy and Outlook

    FY23 Strategy and Outlook 20

  21. Slide 21: Customer Success

    Remarkable People Innovative Customer Exceptional Solutions Success Performance Organisational Excellence 21

  22. Slide 22: FY22 Customer stories

    FY22 Customer stories CUSTOMER STORY i ‘CUSTOMER STORY Victotia State Emergency Service y CUSTOMER STORY tn ‘CUSTOMER STORY ( Data’s's Managed Services’ Bolster Digital Transformatior at the Department for Education in SA. A Shine Lawyer, a) 22 Data’3

  23. Slide 23: Delivering the digital future in South Australia

    Delivering the digital future in South Australia • Last year we announced a multi-year managed services contract with Department for Education • Since then we have succeeded in winning more managed services contracts in SA. These include: • Attorney Generals Department and Public Trustee • Departmen

  24. Slide 24: Increasing customer engagement

    Increasing customer engagement Number of Customers Average Revenue & Average Gross Profit per Customer 2,200 1,200,000 120,000 2,100 1,000,000 100,000 2,000 800,000 80,000 1,900 600,000 60,000 1,800 400,000 40,000 1,700 200,000 20,000 1,600 0 0 1,500 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

  25. Slide 25: Strategic Focus Areas

    Strategic Focus Areas Customer Experience Security Accelerating Services Long-term view, not transactional Protecting our business Completed rebuild of Managed Services Lifecycle approach Market opportunity Strong growth in Consulting Joint investments with Executive leadership & Support Services gl

  26. Slide 26: Outlook

    Outlook Services growth will continue to complement software and infrastructure divisions, while improving recurring “The backlog from FY22 has again revenue and margins provided a fast start to the current year, and we are well positioned to capitalise on opportunities this provides. Growth in clou

  27. Slide 27: Q&A

    Q&A 27

  28. Slide 28: Appendix

    Appendix 28

  29. Slide 29: Data#3: Delivering The Digital Future (Company Video)

    Data#3: Delivering The Digital Future (Company Video) https://youtu.be/nU6bOYVrekg 29

  30. Slide 30: Recent Awards

    Recent Awards Cisco Global Microsoft Worldwide Aruba As a Employer of Cisco ANZ Software Surface+ Partner of the Service Partner Choice, HRD Partner of Partner of of the Year Magazine the Year Year the Year Dell Dell Hewlett Dell Technologies Technologies Trend Micro Cisco APJC Packard Security Tech

  31. Slide 31: 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

  32. Slide 32: www.data3.com.au

    www.data3.com.au 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited 32

Data#3 — FY2022 Earnings Presentation on 6ix