Slide 1: FY23 Interim Results Briefing
FY23 Interim Results Briefing 16th February 2023 1
Slide 2: Agenda
Agenda Data#3 Overview 1H FY23 Operational Overview 1H FY23 Financial Performance Strategy & Outlook Q&A 2
Slide 3: 1H FY23 Financial Highlights
1H FY23 Financial Highlights Revenue Gross Profit NPBT $1.2B $120.0M $24.6M Up 16.7% Up 13.8% Up 32.4% NPAT Basic EPS Dividends per share $17.1M 11.04 cents 10.00 cents Up 38.1% Up 37.8% Up 37.9% Payout ratio of 90.6% 3
Slide 4: 1H FY23 Overview
1H FY23 Overview Total Revenue Cloud Revenue Recurring People Revenue $1.2B >50% 65% 1,300+ up 16.7% of Total Revenue Key awards + certifications • Australian IT market remains strong with growing pipeline of large integration projects • Microsoft Surface+ Worldwide Partner of the Year • Strong Infr
Slide 5: Integrated Solutions, Consulting, Project Services
Integrated Solutions Multi-cloud Modern Security Data & Analytics Connectivity Workplace Modern Data Centre Cloud Security Business Analytics IT-OT Networking Public Cloud Collaboration Customer Management Data Security and Privacy Software-Defined Networks Private Cloud End User Devices Internet of
Slide 6: 1H FY23 Operational Overview
1H FY23 Operational Overview 6
Slide 7: 1H FY23 Operational Highlights
1H FY23 Operational Highlights Multi-cloud Growth Security Growth Services Public & Private Cloud growth. Fastest growing solution. Strong growth in Managed Customers have multiple clouds. Combined D3 and BA offerings. Services with new contract wins. Complements other solutions. Supports rest of bu
Slide 8: 1H23 External Factors
1H23 External Factors Australian IT Global chip Supply chain market growing shortages improving strongly continue gradually 8
Slide 9: Strategic partnerships with global leaders
Strategic partnerships with global leaders Significant investment in technical capability and #1 partner in Australia #1 partner in Australia certifications Cisco Global Partner of the Year for Security 2022 #1 partner in Australia Top five partner in Australia Microsoft Surface+ Worldwide Partner o
Slide 10: Customer Stories
10 Customer Stories ie A Ry -« i. @ Victoria State Emergency Service je lamic College, a Data’3
Slide 11: 1H FY23 Financial Performance
1H FY23 Financial Performance 11
Slide 12: Sustained revenue growth
Sustained revenue growth Total revenue ($M) Revenue trend by functional area ($M) 1,200 1,166.1 1,200 999.3 1,000 1,000 856.7 Services 800 718.9 800 644.4 600 547.3 600 Software Solutions 400 400 Infrastructure 200 200 Solutions 0 0 1H18 1H19 1H20 1H21 1H22 1H23 1H18 1H19 1H20 1H21 1H22 1H23 Strong
Slide 13: Gross Margin and Gross Profit
Gross Margin and Gross Profit 1H FY23 Change Relative Gross Margin % revenue vs. LOW MED HIGH Overall Gross Margin % varies with the changing ($M) 1H FY22 revenue mix: Consulting 15.9 + 22.8% MED - HIGH • Strong growth in Managed Services more than offset by lower Maintenance Services revenues Proje
Slide 14: Steady improvement in operating leverage
Steady improvement in operating leverage Total gross profit ($M) Internal expenses (Staff & Operating costs $M) 140 140 100.0% 120.0 120 120 105.4 95.0% 100 88.6 89.7 100 82.3 80 90.0% 71.8 80 60 60 85.0% 40 40 80.0% 20 20 0 0 75.0% 1H18 1H19 1H20 1H21 1H22 1H23 1H18 1H19 1H20 1H21 1H22 1H23 Operati
Slide 15: Sustained earnings growth
Sustained earnings growth NPBT ($M) Basic EPS (cents) 30 12 11.04 24.6 25 10 8.01 20 18.5 8 5.65 6.09 13.9 15 12.7 6 9.0 3.99 10 4 4.0 1.76 5 2 0 0 1H18 1H19 1H20 1H21 1H22 1H23 1H18 1H19 1H20 1H21 1H22 1H23 NPAT ($M) DPS (cents) 10.00 20 10 17.1 8 7.25 15 12.4 6 5.10 5.50 8.7 9.4 10 3.60 6.1 4 5 2.
Slide 16: Statement of profit or loss
Statement of profit or loss • Revenue increased by 16.7% • Gross profit increased by 13.8% from $105.4M to $120.0M • Total gross margin decreased slightly from 10.6% to 10.3% with changes in the revenue mix • Internal staff costs increased by 12.3% from $75.5M to $84.8M with headcount growth (predom
Slide 17: Balance sheet
Balance sheet • Strong balance sheet with no borrowings • 4th quarter revenue spike inflates Trade receivables and Trade payables at 30 June • Inflated temporary cash surplus at 30 June • Average DSOS of 33.1 days (1H FY22 = 26.8 days) • Inventory is inflated at $47.2M due to supply chain delays and
Slide 18: Working capital analysis
Working capital analysis Working capital components 800,000 Efficient working capital model. 700,000 Short or negative working capital cycles underpin self-funding of 600,000 business. 500,000 400,000 Inventory inflated due to supply 300,000 Other current assets chain delays, but allocated to 200,00
Slide 19: Statement of cash flows
Statement of cash flows • Cash flow ‘seasonality’ consistent with previous years. • Timing differences in the collections from customers and payments to suppliers around 30 June generate large temporary cash surpluses at year-end, which are paid out in 1H . • 1H FY23 average cash balance $147M (1H F
Slide 20: Strategy & Outlook
Strategy & Outlook 20
Slide 21: Digital Transformation
Digital Transformation Artificial Internet of Things 3D Printing Intelligence Foundation Layer Multi-cloud Modern Security Data & Analytics Connectivity Workplace 21
Slide 22: Strategic Focus Areas
Strategic Focus Areas Customer Security Accelerating Experience Services Long term view, Protecting our business Strong growth in not transactional Managed Services Market opportunity Lifecycle approach Steady growth in Consulting Embedded in all our Joint investments with solutions Complementing ve
Slide 23: Outlook
Outlook Well positioned to capitalise on growing IT market and industry tailwinds, with biggest “The strong trading performance has opportunity in software, services & security continued with a strong pipeline of large integration projects. While we have experienced a gradual improvement in Focus on
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: Recent Awards
Recent Awards Microsoft Device Jabra – APAC 2022 Employer HPE Platinum Cisco Global Security Distributor/ Top Public of Choice, HRD Partner of the Partner of the Year Reseller Partner of the Year 2022 Sector Sales Magazine Year Palo Alto Dell Technologies ARN Enterprise Networks HP Services ANZ Veea
Slide 27: 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 28: 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 28