DATA#3 LIMITED — Annual Report 2006

Sep 4, 2006

Full Year Announcement

FY 2005/2006

Data".

Solutions
Adding Value

Maria Maria Maria Maria Ma

Content

Key shareholder information

• Performate in 2005/06

• Maruket se anders hij te de lande

• · Stranger all control for still on incl
• · Outlook for 2007

Key shareholder information

• Market buoyant but competitive
• · Revenues up 22%
• · Services up 42%
• · Product up 17%
• · 'Cross-sell' index increased by 45%
• Gross margins held
• · Expenses declined as % GM
• NPAT of \$5.7M exceeded market quidance
• · Dividend 28 cps fully franked up 47%
• Total shareholder returns of 33%
• · Strong cashflow; no debt
• Staff and customer satisfaction targets achieved

Content

• Performance in 2004/06

· Market assumptions in 2007

• · Strategic Positioning
• · Outlook for 2007

Performance in 2005/06

i.... we intend to continue to recruit strongly particularly outside Queensland, to build scale and thus provide consistency in performance. We believe this to be in the best interests of shareholders, and while it may create some pressure on profitability in the second half we anticipate another record full year result."

Performance in 2005/06

For the full 2005/06 year...

"2006 was an outstanding year for Data#3. While a strong market provided a platform for this, the positioning of our customer value proposition around market-leading expertise in technologies from the world's leading suppliers gave us competitive advantage that translated into performance ahead of target in most areas of the business."

Performence in 2005/06 Revenue and expense

Expense as % of GM

Internal staff & operating expenses down as % of gross margin by 2.2%

Performance in 2005/06 Profit and net assets

Net tangible assets

up 33% to \$12.3 million

Performance in 2005/06 Earnings, dividends and share price

Performance in 2005/06 Revenue by area of business $90^°$ 80 70 60 50 ■ 2005 $\overline{\mathbf{S}}$ 40 $\blacksquare$ 2006 30 20 $10$ Licensing Product Services Enterprise Recruitment

$+35\%$ $+21\%$ $-8\%$ $+12\%$ $+78\%$

*Year on year revenue increased when Fee for Service margin is grossed up to revenue

Performance in 2005/06 Cash Flow

Seasonality in cash flows from operating activities around 30 June, producing negative flows in 1^st half and positive flows in 2^nd half.

Performence in 2005/06 Revenue by sector

Full Year 2005/06

Performance in 2005/06 Key operational information

Measure	Performance
Customer Satisfaction	We achieved our target to improve customer satisfaction over the previous year doing so in 8 out of 9 areas
Customer Engagement Cross-sell index (average number of our areas of specialisation engaged in our top 100 customers)	We grew the index by 45% over the previous year $(1.6 \text{ to } 2.27)$
Employee satisfaction	We achieved our target with 90% of our people indicating Data#3 is an excellent company to work for and one that they would recommend to others in the industry
Expertise Vendor sales targets Vendor certification targets	We achieved all key vendor sales targets ۰ receiving several sales and service awards in the process We retained or improved certification levels across all key and aligned vendors
Cash management - collections and ageing	We met all our targets improving on performance in the previous year
Human Resources	We provided international, award winning ICT and business skills training programs to all staff via our e-Learning program

Performance in 2005/06 Specialist areas

Licensing Solutions Strong growth in 'value solutions' through software asset management

Microsoft Application Solutions Leadership position in Queensland and 'packaged' offerings

ICT Services -- Integration and Managed Services Increased contribution through integration projects and managed services

Enterprise Infrastructure Solutions Solid growth and offerings generating annuity revenues

ICT Products Significant growth in Cisco product and specialisation in print management

Recruitment Solutions Strong growth and investment in new operational systems

Performance in 2005/06 Specialist areas

Achievements

Licensing Solutions Profit + 35%; Microsoft Global Award for Software Asset Mgt

Microsoft Application Solutions Profitable and merged into ICT Services business

ICT Services - Integration and Managed Services Profit + 19%; MSC off plan; Microsoft ANZ Infrastructure Award

Enterprise Infrastructure Solutions Behind plan as team built further; limited annuity offerings; IBM ANZ Storage Award

ICT Products Profit + 37%; Cisco up 50%; margins stable

Recruitment Solutions Profit + 71%; well advanced in new systems

Content

AND MARK AND MARKETING

. Performance in 2005/06

• Manrkel Mension and the Constantine of the Communication

• · Strategic Positioning
• · Outlook for 2007

Market assumptions in 2007

The economy

.Will remain positive if contracting somewhat

Our customers

.ICT solutions viewed as strategic tools and will maintain a positive view of ICT investment

Our people

. Will be able to recruit and retain the right people and deploy them to deliver revenue growth

Competitors

.Will be able to retain differentiation and maintain or improve current win rates

Our Vendors

.Will drive growth and technology leadership and our partnerships will be maintained or strengthened

Technology

. Will be able to predict the impact of emerging technologies and adapt accordingly

Content

CONTRACT OF A CONTRACT AND A CONTRACT OF A CONTRACT OF A CONTRACT OF A CONTRACT OF A CONTRACT OF A CONTRACT OF

· Market assumptions in 2007

· Ferômarce in 2005/06

. See all case of company for the company

· Outlook for 2007

.......differentiation......

......transitioning from 'expertise-oriented'

to 'solutions-oriented'......

sharpening our value proposition......

for customers......

....from 'expertise-oriented'

Licensing Solutions Software licensing and software asset management

ICT Integration Services Microsoft, Cisco, NetIQ and Citrix technologies

ICT Support Services Outsourcing and Remote Managed Support Services

Enterprise Infrastructure Solutions IBM, HP and Cisco storage and server technologies

ICT Products Procurement of Intel Server & desktop and Cisco products

Recruitment Solutions Contract and permanent recruitment

...to 'solutions-oriented'

Licensing Solutions Software Licensing and Software Asset Management

ICT Integration Services Workforce Productivity, Wireless and Mobility, Unified Communications, Security and Privacy

ICT Support Services Outsourcing and Remote Managed Support Services

Enterprise Infrastructure Solutions (Data Centre) Infrastructure Optimisation, Virtualisation, Business Continuity and Information Lifecycle Management

ICT Products ICT Product Procurement, (Intel) Infrastructure and Network Optimisation and Print Services

Recruitment Solutions Contracting and Permanent Recruitment

from...

• Data^#3 is an ICT Solutions Company with market-leading expertise in:
• Software that enhances productivity and information management;
• The design, implementation, management and support of reliable ICT infrastructure:
• Cost effective procurement of ICT hardware and software, and
• Sourcing people with the right ICT skills.

$IO...$

Data^#3 ensures its ICT Solutions meet customers' business imperatives through a unique framework underpinned by market-leading expertise and a culture that puts customers first.

...through a unique framework...

Data#3 Solutions Framework

CUSTOMER IMPERATIVES

PURSUED TACTICALLY

ENABLED BY ICT SOLUTIONS

EMBEDDED IN DATA#3's AREAS OF SPECIALISATION

WITH EXPERTISE IN TECHNOLOGIES FROM GLOBAL VENDORS

DELIVERED UNDER (PDO)²

AND WITH A CULTURE THAT PUTS CUSTOMERS FIRST

e.g. Virtualisation Solutions....

e.g. Virtualisation Solutions....

e.g. Virtualisation Solutions....

EMBEDDED IN DATA#3's AREAS OF SPECIALISATION

	Licensing Solutions
	1920 - Light agus Pinne Naschreppin
	ICT Managed Services
	"一个有数十分时候他们不能行为我们的事情"的时候,但是非常的,不是
	TCT Product Solutions .
The company of the company of the .	Recruitment Solutions

IN TECHNOLOGIES FROM GLOBAL VENDORS

시간에서 지원 부지 사업 의사 발부는			医学 的 人名	galba di		MICROSOFT
CITRIX			LENOVO	SYMANTEC		$\mathcal{N}$ the original $\mathcal{N}$
医肝脏 医大麻 化加氢			Trend	Toshiba		Other
DELIVERED UNDER (PDO) 2
a sõjavata partikool	(1916) April		全世界 倍纤维 生	era hasa kecamatan ing	OPERATE		7일부 Additional Adventure
AND WITH A CULTURE THAT PUTS CUSTOMERS FIRST
of the components of the team	There is a strong		They are get its than	The September of the Second		Care may computed a desi	The American State

...through a unique framework....

(PDO)² Solution Lifecycle Methodology

DELIVERED UNDER (PDO)²

POSITION

Content

SANTONOMO ANDE ANDERSON

• Market essunptions in 2007

· Parformance in 2005/06

• · SISEMIN POSITIONIS
• · Outlook for 2007

Outlook for 2007

Licensing Solutions Strong revenue growth; maintain market leadership; maintain margins ICT Services Moderate revenue growth; higher people costs offset by

increased scale

Enterprise Infrastructure Solutions

Moderate revenue growth; pressure on margins; annuity revenue around management and support

ICT Product Solutions

Low revenue growth; risks with vendor direct and consolidated purchasing in Govt; focus on comms products, telesales and solutions 'bundling

Recruitment Solutions High revenue growth at lower margin offset by lower costs

...we believe we can improve

financial performance over the

record 2006 result and deliver

dividends at the top of the sector...

Questions and comments

FY 2005/2006

Manaman Manaman Ma