Slide 1: FY23 Results Briefing
FY23 Results For personal use only Briefing 22nd August 2023 Presented by Laurence Baynham Cherie O’Riordan CEO CFO 1
Slide 2: FY23 Financial Highlights
FY23 Financial Highlights For personal use only Revenue Gross Profit NPBT $2.5B $250.7M $53.2M Up 16.9% Up 14.9% Up 20.7% NPAT Basic EPS Dividends per share $37.0M 23.96 cents 21.90 cents Up 22.4% Up 22.2% Up 22.3% Payout ratio of 91.4% 2
Slide 3: Agenda
Agenda For personal use only Data#3 Overview FY23 Operational Overview FY23 Financial Performance FY24 Strategy Customer Success Summary and Outlook 3
Slide 4: FY23 Operational Overview
For personal use only FY23 Operational Overview 4
Slide 5: FY23 Overview
FY23 Overview Revenue Revenue growth rate Recurring People relative to IT market Revenue For personal use only $2.5B >3x 65% 1,400+ Key awards + certifications • In line with strategy, strong revenue growth in Managed Services and Software Solutions, • HRD Employer of Choice – 8th year in a row supp
Slide 6: FY23 Operational Highlights
FY23 Operational Highlights For personal use only Multi-cloud Growth Security Growth Services Cloud is now ubiquitous in our Fastest growing solution Strong growth in Consulting and customer solutions and top customer priority Managed Services should ISO 27001 certified improve future Gross Margins
Slide 7: Digital Transformation
Digital Transformation For personal use only Operational Technology Internet of Things Robotics Extended Reality Foundational Technology Multi-cloud Hybrid Work Security Data & Analytics Connectivity Digital Milestones Computers The Internet Artificial Intelligence 7
Slide 8: We are at the beginning of a new era of IT
We are at the Artificial Intelligence For personal use only beginning of a new era of IT. Generative AI will be as impactful as cloud or the internet. Satya Nadella, CEO of Microsoft 8
Slide 9: AI as a major digital milestone
AI is a major digital milestone with operational technologies like robotics becoming integral to our transformation solutions. For personal use only We are already seeing rapid product development incorporating cloud, hybrid work, security, connectivity and data analytics. We are assessing wid
Slide 10: Integrated Solutions embedded with AI
Integrated Solutions embedded with AI 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 Pri
Slide 11: Strategic partnerships
For personal use only Top five partner #1 partner in Australia in Australia Strategic partnerships Significant investment in 400+ other partnerships with global leaders technical capability and with emerging vendors certifications 11
Slide 12: FY23 Awards
FY23 Awards For personal use only NEWS Data#3 wins HRD Employer of Choice for 8th consecutive year 12
Slide 13: FY23 Financial Performance
For personal use only FY23 Financial Performance 13
Slide 14: Sustained earnings growth
Sustained earnings growth NPBT ($M) Basic EPS (cents) For personal use only 25 23.96 60 53.2 50 19.61 44.1 20 16.51 40 36.9 15.35 34.1 15 26.6 11.76 30 20.4 9.14 10 20 10 5 0 0 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 NPAT ($M) - excluding minority interests DPS (cents) 40 37.0 25
Slide 15: Sustained revenue growth
Sustained revenue growth Total revenue ($M) Revenue CAGR of 15.3% 1 fuelled by For personal use only software licensing, multi-cloud solutions and services. 3000 2,564.6 2500 2,193.0 1,956.2 2000 Strong customer spend in higher 1,625.9 growth education, health 1500 1,415.6 and resource sectors. 1,18
Slide 16: Changing sales mix
Changing sales mix Revenue trend by functional area ($M) For personal use only FY23 Change 3000 Business unit revenue vs. ($M) FY22 2500 Business Aspect Consulting 33.2 + 25.0% 2000 Project Services 74.5 + 11.9% 1500 Maintenance Services 125.0 - 3.9% Managed Services 39.3 + 31.1% 1000 People Solutio
Slide 17: Gross margin and Gross profit
Gross margin and Gross profit Overall Gross Margin % varies with changing revenue mix. • Infrastructure Solutions benefiting from strong growth Business unit FY23 FY23 Relative Gross For personal use only revenue revenue Margin % in networking and storage, and easing supply chain ($M) growth constra
Slide 18: Steady improvement in operating leverage
Steady improvement in operating leverage Total gross profit ($M) & Total gross margin (%) Internal expenses (Staff & Operating costs $M) For personal use only 300 25.0% 250 95.0% 250.7 250 90.0% 218.2 200 20.0% 188.0 194.7 200 85.0% 173.9 160.1 150 150 15.0% 80.0% 100 100 13.6% 11.6% 75.0% 12.3% 10.
Slide 19: Statement of profit or loss
Statement of profit or loss • Revenue increased by 16.9% For personal use only • Interest income $3.5M vs $273K predominately due to higher interest rates earned on deposits • Internal staff costs increased by 15.7% (from $153.0 million to $176.9 million) reflecting headcount growth (predominantly i
Slide 20: Balance sheet
Balance sheet For personal use only • 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 Day Sales O
Slide 21: Working capital analysis
Working capital analysis Working capital components Efficient working capital model. 870,000 For personal use only 770,000 Short or negative working 670,000 capital cycles underpin self- funding of business. 570,000 470,000 370,000 270,000 Other current assets Inventory reduced in FY23. Inventory 17
Slide 22: 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 For personal use only temporary cash surpluses • FY23 average daily cash balance $120.9M (FY22 = $117.2M) • Underlying
Slide 23: FY24 Strategy and Outlook
For personal use only FY24 Strategy and Outlook 23
Slide 24: Strategic Framework
Strategic Remarkable Framework People For personal use only Innovative Customer Exceptional Solutions Success Performance Organisational Excellence 24
Slide 25: FY23 Customer stories
FY23 Customer stories For personal use only 25
Slide 26: Leading the Future of Digital Transformation in Australia
Leading the Future of Digital Transformation in Australia For personal use only • Design and implement an innovative digital network for Queen’s Wharf Brisbane, a $3.6 billion integrated resort development by Destination Brisbane Consortium. • 4 towers, 50 restaurants/bars, 2,000 apartments, 1,000 h
Slide 27: Data#3 Competitive Advantages
Data#3 Competitive Advantages For personal use only 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 Agi
Slide 28: Increasing customer engagement
Increasing customer engagement For personal use only Average Revenue & Average Gross Profit per Customer • Average revenue and GP per customer group has increased as we extend 1,400,000 140,000 engagement across our portfolio of 1,200,000 120,000 solutions, including higher GP services. 1,000,000 10
Slide 29: Strategic Focus Areas
Strategic Focus Areas For personal use only Customer Security Accelerating ESG Experience Services Protecting our business To further develop and enhance our initiatives Long-term view, Continued investment in Market opportunity across ESG not transactional Managed Services Go to market with To benc
Slide 30: Outlook
Outlook For personal use only Services growth will Growth in multi-cloud Gen AI Growing pipeline of continue to solutions and cyber fuelling digital major integration complement Software security continues to transformation project opportunities and Infrastructure provide data and growth as large co
Slide 31: CEO outlook statement
For personal use only We continue to experience a steady increase in the pipeline of large integration project opportunities across our corporate and public sector customers, and are seeing strong growth in our higher margin Managed Services business, complementing our growing Software and Infrastru
Slide 32: Q&A
32 For personal use only Q&A
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 For personal use on
Slide 34: For personal use only
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 34