DATA#3 LIMITED — Annual Report 2007

Sep 2, 2007

2007 ‘brand’….

.. full year report - September 2007

...content 1. milestones 2. key financial information 3. operational performance 4. strategy, development, growth

1. milestones

...milestones.. 10 years …since listing on ASX 30 years …since foundation as …total return to an IT business 72% shareholders 93.6% $100M …of staff named Data[#] 3 as their …market cap employer of choice

$100M …market cap 1st Australian company to be a

2. key financial

.. ...the top line …total revenue + 19% to $285M …revenue under contract 56.4%

==> picture [718 x 280] intentionally omitted <==

----- Start of picture text -----

300
250
200
$M 150
100
50
0
2003/04 2004/05 2005/06 2006/07
Total revenue Under contract
----- End of picture text -----

.. ...the top line

…services revenue + 30% …product revenue + 16%

==> picture [62 x 136] intentionally omitted <==

----- Start of picture text -----

300
250
200
$M 150
100
----- End of picture text -----

Services revenue Product revenue Total revenue

...a new view..

strategy

software infrastructure

business technology business applications productivity applications desktop to data centre

...a new view..

strategy

Technology ICT strategy and architecture

software

infrastructure

productivity applications acquisition and management desktop to data centre design, deploy, operate, optimise

.. ...the top line

==> picture [292 x 270] intentionally omitted <==

----- Start of picture text -----

100
80
60
$M
40
20
0
2003/04 2004/05 2005/06 2006/07
Software Licensing revenue
150
100
$M
50
0
2003/04 2004/05 2005/06 2006/07
Infrastructure revenue
----- End of picture text -----

…software licensing + 20% to $98M

…infrastructure + 12% to $148M

==> picture [160 x 86] intentionally omitted <==

----- Start of picture text -----

2003/04 2004/05 2005/06
----- End of picture text -----

40 30

…operating expense as % of gross margin down 1.5%

...the middle line..

==> picture [718 x 282] intentionally omitted <==

----- Start of picture text -----

95
90
% 85
80
75
2003 2003/04 2004/05 2005/06 2006/07
Expense as % of GM
----- End of picture text -----

…NPAT + 26% to $7.2M

==> picture [718 x 378] intentionally omitted <==

----- Start of picture text -----

8
7
6
5
$M 4
NPAT
3
2
1
0
2003/04 2004/05 2005/06 2006/07
…the bottom line..
----- End of picture text -----

earnings & dividends eps + 25% to 46.1 cents dps + 29% to 36 cents payout ratio 78%

==> picture [518 x 181] intentionally omitted <==

----- Start of picture text -----

50
40
30
cents eps
20
dps
10
0
----- End of picture text -----

share price and TSR

==> picture [718 x 400] intentionally omitted <==

----- Start of picture text -----

…share price + 62%
…TSR 72%
150
6
5
100
4
%
$ 3
2 50
1
0 0
30/06/04 30/6/05 30/6/06 30/6/07 2003/04 2004/05 2005/06 2006/07
Share price TSR
----- End of picture text -----

...cash..

==> picture [726 x 407] intentionally omitted <==

----- Start of picture text -----

20
15
10
operating cash flow
$M 5
net change in cash
0 closing cash balance
-5
-10
2003/04 2004/05 2005/06 2006/07
cash flow seasonality
outflow in the first half & inflow in second half
average DSOS 37 days
----- End of picture text -----

…balance sheet..

	30/6/06 $M	30/6/07 $M
Current assets	53.1	75.4
Non-current assets	6.9	6.6
Total assets	60.0	82.0
Current liabilities	42.1	62.1
Non-current liabilities	1.0	0.8

(historical).. …yield

				Yield
			Company	AFR
				31/8/07
		Data#3	($6.85 share price)	5.26%
			UXC	3.73%
			Oakton	3.51%
			SMS	3.16%
			ASG Commander	3.15% 2.84%

3. operational

==> picture [90 x 444] intentionally omitted <==

----- Start of picture text -----

…solution framework
----- End of picture text -----

Uniting outstanding solutions, remarkable people, organisational excellence to deliver customer success

==> picture [345 x 262] intentionally omitted <==

==> picture [345 x 173] intentionally omitted <==

==> picture [281 x 148] intentionally omitted <==

…progress to date

• market research

• trademark submission for (pdo)[2]

• cross organisation framework + (pdo)[2]

• internal solution collateral and ‘soft’ launch

• e-learning tools

• ‘soft’ customer launch

• (pdo)[2] defined for Integration Services as model

• v-ip teams for each solution

• implementation in delivery process

…key partners

==> picture [118 x 85] intentionally omitted <==

renewed gold certification personal systems award Asia/Pac member HP A/Pac Advisory Board IBM global award finalist system i partner of the year

…emerging partners

==> picture [199 x 84] intentionally omitted <==

targeting CITRIX premium VMware premier partner accredited consulting partner NetApp partnership in storage

.. ...people

==> picture [275 x 276] intentionally omitted <==

----- Start of picture text -----

400
300
200
100
0
30/6/04 30/6/05 30/6/06 30/6/07
# permanent staff
400
300
200
100
0
30/6/04 30/6/05 30/6/06 30/6/07
# contractors
----- End of picture text -----

….permanents up 4% to 355

…contractors up 40% to 360

==> picture [160 x 86] intentionally omitted <==

----- Start of picture text -----

2004 2005 2006
----- End of picture text -----

94 92

…customers..

==> picture [290 x 96] intentionally omitted <==

----- Start of picture text -----

97
96.5
96
% 95.5
95
94.5
94
2005 2006 2007
----- End of picture text -----

…97% met or exceeded expectations

meet expectations

==> picture [291 x 127] intentionally omitted <==

----- Start of picture text -----

2.5
2
1.5
$M
1
0.5
0
2004/05 2005/06 2006/07
CSI
----- End of picture text -----

…cross sell index (csi) = previous year

==> picture [116 x 80] intentionally omitted <==

----- Start of picture text -----

2004/05 2005/06
----- End of picture text -----

250 200

…recent successes

one of 3 suppliers to Queensland Whole of Government $100M, 3 to 5 year contract for IT infrastructure & services

==> picture [118 x 65] intentionally omitted <==

3 year contract for all Microsoft licensing

national refresh across 350 branches, with

4. strategy development and

…strategy

==> picture [530 x 301] intentionally omitted <==

…development 1. trend in technology adoption and adapting offerings

==> picture [45 x 64] intentionally omitted <==

product > expertise > solution > outsourced > access

2. solution type

…development

Characteristic	Technology Adoption Trend	Technology Adoption Trend	Technology Adoption Trend	Technology Adoption Trend	Technology Adoption Trend
	Product	Expertise	Solution	Outsourced	Access
Value	Range, price, supply chain	Capability	Inhouse outcome	Offsite outcome	As required outcome
CRM example	‘shrink wrap’ product	Consultant to assist	Installed and running	Hosted	SaaS
Responsibility	Customer	Customer	Supplier then customer	Supplier	Supplier
How acquired	Solutions Purchase	Purchase	Purchase then contract fee	Fixed contract Fee	Variable contract fee
Services by	Framewor (pdo)2 Customer	Supplier	Supplier	Supplier	Supplier

…development

Solution Set	Offering	Technology Adoption Trend	Technology Adoption Trend	Technology Adoption Trend	Technology Adoption Trend	Technology Adoption Trend
		Product	Expertise	Solution	Outsourced	Access
Solution set 1	Offering 1	Repeatable
	Offering 2			Customise
	Offering 3			One off
Solution set 2	Offering 1				Repeatable
	Soluti Offering 2	ons			Customise
Solution set 3	Frame (pdo Offering 1	work )2	One off

5. outlook for full

…assumptions Macro economy remain positive for continuing corporate profitability some emerging uncertainty Customer attitude to ICT ICT Solutions are strategic and investment will be maintained pressure to lower ICT operational expense People challenging market to continue relatively high levels of turnover and cost per person to increase Ability to compete and win will be maintained or improved

….outlook for full year..

licensing solutions

infrastructure solutions

maintain leadership solid organic growth at similar margins recruit specialists in market increasing solution leadership modest organic growth restricted people availability partnerships

people solutions

enhance differentiation strong growth in buoyant market recruit and/or acquire

….outlook for full year

“…we are well positioned to improve financial performance for the full year over the record 2007 result and deliver dividends near the top of the sector…”

2007 ‘brand’….

.. ...final report - September 2007