Slide 1: FY17 Interim Results Briefing
For personal use only FY17 INTERIM RESULTS BRIEFING 22 FEBRUARY 2017
Slide 2: Contents
CONTENTS For personal use only 1H FY17 Summary 3 Our Business 6 Recent Customer Example 9 1H FY17 Financial Performance 11 Strategy 18 FY17 Outlook 22 Q&A 24
Slide 3: 1H FY17 Summary
For personal use only 1H FY17 SUMMARY
Slide 4: Solid 1H with NPAT and EPS growth of 34%
4 For personal use only “We delivered a solid 1H with NPAT and EPS growth of 34%. The board is pleased to declare an interim dividend of 3.35 cps, an increase of 34% on the previous 1H”
Slide 5: Operational Achievements
5 OPERATIONAL ACHIEVEMENTS For personal use only • Continued strategic shift towards services • Solid growth in cloud-based revenues to $58M • Continued investment in systems and people
Slide 6: Our Business
For personal use only OUR BUSINESS
Slide 7: For personal use only
@eo@e0000@ FPPPF 1100+ aN GRATION CENTRES EMPLOYEES IN 2016 aes FOUNDED NM | pg USTED ON : Oo 1977 | aise SCALE : a © 983.2 6G & SS : 17.4M 4,719 43,120 2,275 IN REVENUE IN FY16 : individual products transacting service desk calls professional : sold to customers customers by customers —_ services p
Slide 8: Our Solutions
OUR SOLUTIONS 8 For personal use only We offer a range of technology solutions to help customers achieve their business objectives. These solutions are delivered using our Customer Solution Lifecycle (pdo)2 Position, Plan, Design, Deploy, Operate, Optimise
Slide 9: Recent Customer Example
For personal use only RECENT CUSTOMER EXAMPLE
Slide 10: For personal use only
For personal use only • First Emergency Services Organisation to go to the Public Cloud • SES criteria included systems availability, scalability and security • Our solution includes the design, implementation and ongoing support services for Microsoft Azure Public Cloud platform
Slide 11: 1H FY17 Financial Performance
For personal use only 1H FY17 FINANCIAL PERFORMANCE
Slide 12: 1H FY17 Performance – Sustained Growth
12 1H FY17 PERFORMANCE – SUSTAINED GROWTH For personal use only Revenue Up 10.6% $506.0M Product Up 11.5% $413.9M Services Up 6.6% $91.3M Public cloud (included in Product & Services above) Up 44.2% $58.0M Other Revenue Up 7.4% $0.8M Gross Profit (excluding Other Revenue) Up 8.1% $74.0M Product Up 0
Slide 13: Strategic Shift in Business Mix
13 STRATEGIC SHIFT IN BUSINESS MIX For personal use only Product revenue ($M) Total revenue ($M) 500 375.2 413.9 600 400 338.6 332.7 329.7 371.1 506.0 500 435.8 457.5 300 406.2 399.1 406.4 400 200 300 100 200 0 1H12 1H13 1H14 1H15 1H16 1H17 100 0 1H12 1H13 1H14 1H15 1H16 1H17 Services revenue ($M) 1
Slide 14: Solid Growth in Services Gross Profit
14 SOLID GROWTH IN SERVICES GROSS PROFIT Product gross profit ($M) For personal use only 50 Total gross profit ($M) 80 74.0 40 31.8 32.5 34.4 34.7 68.4 28.7 30.5 59.4 61.6 62.4 30 57.5 60 20 40 10 0 20 1H12 1H13 1H14 1H15 1H16 1H17 0 1H12 1H13 1H14 1H15 1H16 1H17 Services gross profit ($M) 50 39.2 4
Slide 15: Expenses Reflect Growth Strategy
15 EXPENSES REFLECT GROWTH STRATEGY For personal use only Internal staff costs ($M) 60 51.4 54.8 46.7 49.2 50 43.8 44.7 40 30 20 10 Internal staff costs up 6.6% with market-based 0 1H12 1H13 1H14 1H15 1H16 1H17 increases and headcount growth in Business Aspect consulting. Operating expenses stabiliz
Slide 16: Sustained Earnings Growth
16 SUSTAINED EARNINGS GROWTH For personal use only NPAT ($M) EPS (cents) 5 4.70 4.40 8 7.2 6.8 4 3.71 5.7 6 2.77 4.3 3 2.32 4 3.6 1.67 2.6 2 2 1 0 0 1H12 1H13 1H14 1H15 1H16 1H17 1H12 1H13 1H14 1H15 1H16 1H17 DPS (cents) 5 Solid growth in revenue and gross profit generated 4 3.45 3.45 3.35 steady gr
Slide 17: Solid Balance Sheet & Cashflow
17 SOLID BALANCE SHEET & CASHFLOW For personal use only • 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 27 days - industry best practice and consistent with PCP
Slide 18: FY17–19 Strategy
For personal use only FY17–19 STRATEGY
Slide 19: Underlying Fundamentals Influencing Sector Growth
19 UNDERLYING FUNDAMENTALS INFLUENCING For personal use only SECTOR GROWTH • Economic outlook is mixed but overall neutral for commercial customers • Education and health sectors will continue to grow • A rapid shift to consumption-based and service-centric solutions is occurring • Digital solutions
Slide 20: Long Term Objectives
20 LONG TERM OBJECTIVES For personal use only 1. Deliver sustained profit growth 2. Grow services revenue with an increase in annuity and an increase in margin 3. Grow cloud services revenues
Slide 21: Key Priorities in FY17
21 KEY PRIORITIES IN FY17 For personal use only 1. Investing in sales enablement to better position ourselves with our customer’s digital transformation Progressing well, using Corporate Executive Board methodologies 2. Growing our Business Aspect consulting business and leveraging Data#3 where ap
Slide 22: FY17 Outlook
For personal use only FY17 OUTLOOK
Slide 23: FY17 Outlook
23 FY17 OUTLOOK For personal use only We are confident that we have the right strategy to underpin sustainable growth in long term shareholder returns. Our first half performance and current pipeline provides a solid foundation to achieve our full year objective of delivering earnings growth and ret
Slide 24: Q&A
For personal use only Q&A
Slide 25: Appendix – Financial Summary
25 APPENDIX 1 – FINANCIAL SUMMARY For personal use only
Slide 26: Disclaimer
26 DISCLAIMER For personal use only 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
Slide 27: Contact Us
CONTACT US For personal use only Interested in how Data#3 can help? www.data3.com.au | 1300 23 28 23 Follow Us Twitter.com/Data3Limited Facebook.com/Data3Limited Linkedin.com/company/Data3 Youtube.com/Data3Limited