Slide 1: FY21 Results Briefing
FY21 Results Briefing 19th August 2021 1
Slide 2: Agenda
Agenda Data#3 Overview FY21 Operational Overview FY21 Financial Performance FY22 Strategy Winning New Customers Summary and Outlook 2
Slide 3: FY21 Financial Highlights
FY21 Financial Highlights Revenue Gross Profit NPBT $1.96B $194.7M $36.9M Up 20.3% Up 3.6% Up 8.4% Dividends per share NPAT Basic EPS $25.4M 16.51 cents 15.0 cents Up 7.9% Up 7.5% Up 7.5% Payout ratio of 90.9% 3
Slide 4: Data#3 in FY21
Data#3 in FY21 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 • Health, Education and Resources industries 9 62% Key awards + certifications Average tenure of executive team 2
Slide 5: Data#3 Company History
Data#3 Company History 2008 1977 1996 2021 2002 2017 SA office opens PCA was Sydney & Headcount: 1,290 established Melbourne ACT office Fiji office Headcount: 850 offices open opens opens 30/6 Market cap: Headcount: 3 $863.8M 30/6 Market cap: $86.6M 2019 1997 2007 2014 Data#3 added to 1984 S&P/ASX 3
Slide 6: Customer Satisfaction
Customer Satisfaction FY21 FY20 4.34 FY19 4.15 4.28 6
Slide 7: Digital Transformation
Digital Transformation Artificial Internet of Things 3D Printing Intelligence Foundation Layer Multi-cloud Modern Security Data & Analytics Connectivity Workplace 7
Slide 8: 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
Slide 9: Other partnerships
#1 partner in Australia #1 partner in Australia #1 partner in Australia 400+ other partnerships Top five partner in Australia 9
Slide 10: FY21 Operational Overview
FY21 Operational Overview 10
Slide 11: FY21 External Factors
FY21 External Factors Australian IT Global chip COVID-19 Market – flat or shortage Work from home negative Collaboration Vaccine 11
Slide 12: FY2021 Operational Highlights
FY2021 Operational Highlights Multi-cloud Growth Security Growth $791M in Public Cloud $100M+ Private Cloud growth Combined D3 and BA Customers have multiple clouds Complements all solutions Services Customer Experience Reinvention of Managed Services Investment in systems and people BA profit turna
Slide 13: FY21 Financial Performance
FY21 Financial Performance 12 13
Slide 14: Sustained revenue growth, boosted by cloud
Sustained revenue growth, boosted by cloud Total revenue ($M) Total Public Cloud revenue ($M) Strong revenue growth fuelled by Total revenue includes $791.6M of Approximately 62% of revenue is software licensing and cloud- public cloud revenues, up 36.2% recurring, under term-based based solutions.
Slide 15: Changing sales mix
Changing sales mix Revenue trend by functional area ($M) FY21 revenue Change Business unit ($M) vs. FY20 Infrastructure Solutions 466.8 + 13.0% Software Solutions 1,248.5 + 26.8% Project Services 63.4 + 6.7% Support Services 96.1 + 11.0% People Solutions (recruitment) 57.3 - 2.7% Business Aspect (co
Slide 16: Regional revenue summary
Regional revenue summary FY21 Revenue split by region (Total $1,955M) FY20 Revenue split by region (Total $1,624M) 16
Slide 17: Sustained earnings growth
Sustained earnings growth NPBT ($M) NPAT ($M) – excl. minority interests Basic EPS (cents) Dividends per share (cents) 17
Slide 18: Statement of profit or loss
Statement of profit or loss • Revenue increased by 20.3% • Gross profit increased by 3.6% (from $188.0M to $194.7M) and total gross margin decreased from 11.6% to 10.0% due to changes in the revenue mix • Internal staff costs increased by 3.4% (from $133.8M to $138.3M) due to headcount growth • Othe
Slide 19: Steady improvement in operating leverage
Steady improvement in operating leverage Total gross profit ($M) Internal expenses (Staff & Operating exp $M) Gross margin % has varied with changing sales mix. Internal Cost Ratio (ICR) = Internal expenses / Gross profit. The ratio has improved from 89% to 81.5% over this period. 19
Slide 20: Balance sheet
Balance sheet • Strong balance sheet with no borrowings • 4th quarter revenue spike inflates Trade receivables and Trade payables at year end • Large temporary cash surpluses at 30 June • FY21 average cash balance $126.6M (FY20 = $81.3M) • Average DSOS of 27.7 days (FY20 = 29.7 days) • Low inventory
Slide 21: Working capital analysis
Working capital analysis • Efficient working capital model • Short or negative working capital cycles underpin self-funding business model • Low inventory, all allocated to customer orders or projects • Average collection cycle 28 days • Favourable trade terms with suppliers • Stable working capital
Slide 22: 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 temporary cash surpluses. • The 30 June 2020 surplus was unusually inflated by sizeable, early customer receipts
Slide 23: FY22 Strategy
FY22 Strategy 23
Slide 24: Solutions Framework
Remarkable People Innovative Solutions Customer Exceptional Solutions Framework Success Performance Organisational Excellence 24
Slide 25: FY22 Strategic Highlights
FY22 Strategic Highlights Customer Security Accelerating Experience Services Protecting our business Long term view, Completed rebuild of Market opportunity not transactional Managed Services Executive leadership Lifecycle approach Profit turnaround for Business Aspect GTM with BA Joint investments
Slide 26: Winning New Customers
Winning New Customers 26
Slide 27: Average Customer Revenue by Years Active
Average Customer Revenue by Years Active 27
Slide 28: Summary and Outlook
Summary and Outlook 28
Slide 29: Summary and outlook
COVID and Fast start IT outlook Position in Accelerating supply chain FY21 $3M backlog will Gartner predict the market Services be realised in FY22 Australian IT market to Will continue to be grow by 4% to over Positioned to capitalise Services growth managed effectively by $100 billion on growth op
Slide 30: The backlog from FY21 has provided a fast start to FY22
"The backlog from FY21 has provided a fast start to FY22 and we are well positioned to capitalise on a growing market. At this stage we are unable to provide specific guidance or commentary on the FY22 outlook, however our goal remains to deliver sustainable earnings growth.” 30
Slide 31: Q&A
Q&A 31
Slide 32: Appendix
Appendix 32
Slide 33: Data#3: Delivering The Digital Future (Company Video)
Data#3: Delivering The Digital Future (Company Video) https://youtu.be/nU6bOYVrekg 33
Slide 34: Recent Awards
Recent Awards Lenovo Women in Platinum Employer of Cisco Global Commercial Technology HP PC Partner Reseller of the Choice, HRD Partner of the Year Partner of of the Year Magazine Year in the Data Choice Centre Group Category Dell Dell Lenovo Dell ANZ 2019- Technologies ARN Partner Veeam Platinum Tr
Slide 35: 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 36: 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 36