Slide 1: FY19 Results Briefing
FY19 Results Briefing 21st August, 2019
Slide 2: Contents
Contents FY19 Summary 3 IT Sector 5 Our Business 9 Digital Transformation 14 FY19 Financial Performance 16 FY20 Looking Forward 22 Q&A 26 2
Slide 3: FY19 Summary
FY19 Summary 3
Slide 4: CEO statement on FY19 result
“We are delighted with the performance of the consolidated Data#3 business. The full year result demonstrates the inherent strength and relevance of our solution offerings in a transforming market. Total revenue increased by 19.8%, and NPAT & EPS increased by 28.7% to record highs. The board declare
Slide 5: IT Sector
IT Sector 5
Slide 6: Australian IT market
2019 total market Australian IT market spend $94Billion* 6 * Gartner Forecasts IT Spending in Australia to Grow at 3.5 Percent in 2019
Slide 7: Global Cloud Deployment
= [DC ANALYZE THE FUTURE Worldwide Cloud IT Infrastructure Market Forecast by Deployment Type, 2017- 2023 (shares based on Value) 2017 2018 2019 2020 2021 2022 2023 100% 90% 80% - 70% - Global Cloud Deployment = 40% 30% 20% 10% 0% - WTraditional DC mPrivate Cloud ™ Public Cloud Source: IDC 2019 Data
Slide 8: DTL Cloud Growth
Public cloud revenue ($M) DTL Cloud Growth 400 362.2 300 267.8 Growth in Public Cloud 35% 200 169.5 Growth in Private Cloud 99.0 100 47.0 0 FY15 FY16 FY17 FY18 FY19 8
Slide 9: Our Business
Our Business 9
Slide 10: Data#3 in FY19
Data#3 in FY19 1,200+ staff 9 offices across Australia and Fiji 3 integration centres Founded in 1977 55% revenue under contract Listed on the 4,933 enterprise and government customers ASX in 1997 2.5M+ Office 365 licensed users $1.4 Billion in revenue 2,113 services projects 10
Slide 11: Partnering with leading global suppliers
Partnering with leading global suppliers #1 or #2 in the Australian market Many national and international awards Global Cisco software partner award 11
Slide 12: Our vision
Our vision is to harness the power of people and technology for a better future. 12
Slide 13: Our Solutions
Our Solutions Cloud Mobility Security Data & Analytics IT Lifecycle Management Consulting Project Services Support Services 13
Slide 14: Digital Transformation
Digital Transformation 14
Slide 15: Digital Transformation
Digital Transformation Data & Analytics Artificial Intelligence Internet of Things 3D Printing FOUNDATION LAYER Network Cloud Mobility Security Software (Public & Private) 15
Slide 16: FY19 Financial Performance
FY19 Financial Performance 16
Slide 17: FY19 Performance Summary
FY19 Performance Summary Revenue Up 19.8% $1,415.6M Product Up 21.3% $1,167.4M Services Up 13.3% $246.9M Public cloud (included in Product & Services above) Up 35.3% $362.2M Other Revenue $1.2M Gross Profit (excluding Other Revenue) Up 8.6% $173.9M Product Up 17.2% $90.2M Services Up 0.6% $83.7M Gro
Slide 18: Sustained Revenue Growth
Sustained Revenue Growth Product revenue ($M) Services revenue ($M) Total revenue ($M) 1400 300 1600 1,415.6 1,167.4 246.9 1200 1400 1,181.4 1000 889.2 962.3 208.1 218.0 1200 1,098.2 190.0 983.2 791.3 200 1000 833.6 870.5 800 697.3 709.2 160.2 134.8 800 600 600 400 100 400 200 200 0 0 0 FY14 FY15 FY
Slide 19: Change in Gross Profit mix
Change in Gross Profit mix Product gross profit ($M) Services gross profit ($M) Total gross profit ($M) 100 90.2 100 86.3 200 83.1 83.7 173.9 72.5 77.0 76.0 158.9 160.1 80 66.2 70.5 80 160 146.6 62.0 63.3 129.5 56.8 118.9 60 60 120 40 40 80 20 20 40 0 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16
Slide 20: Return to trend growth
Return to trend growth NPBT ($M) EPS (cents) 30 26.6 14 25 22.4 11.76 19.5 20.4 12 9.99 20 10 8.98 9.14 15.2 15 8 6.89 10.9 6 4.89 10 4 5 2 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 NPAT ($M) excluding minority interests DPS (cents) 12 10.70 20 18.1 15.4 10 8.90 8.00 8.20 13.8
Slide 21: Solid Balance Sheet & Cash Flow
Solid Balance Sheet & Cash Flow • Strong balance sheet with no material borrowings • Any borrowings are back-to-back with customer contracts • Cash flow ‘seasonality’ consistent with previous years • Average DSOS of 28.7 days – ahead of target and industry best practice 21
Slide 22: FY20 Looking Forward
FY20 Looking Forward 22
Slide 23: Market Trends
Market Trends Digital transformation is a Cybersecurity poses Attracting and retaining high priority in business increasingly larger threats and skilled resources is strategy continues to grow increasingly competitive Artificial intelligence & The overall IT market Vendor channel models are robotics
Slide 24: Key Priorities in FY20
Key Priorities in FY20 Services – Digital Enablement – Customer Experience – Vendor Relationships – improving margins helping our customers unifying every customer investing with the right succeed in their digital touchpoint across our vendors, and working transformation company to improve the their
Slide 25: FY20 Outlook
FY20 Outlook We see ongoing growth in the Australian IT market, with digital technologies leading business transformation in both the commercial and public sectors, and we believe we remain well positioned to capitalise on these opportunities. We will continue to build on our strengths and enhance s
Slide 26: Q&A
Q&A 26
Slide 27: Appendix – Financial Summary
Appendix 1 – Financial Summary 27
Slide 28: 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 29: 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 29