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DATA#3 LIMITED Interim / Quarterly Report 2003

Mar 27, 2003

64791_rns_2003-03-27_776f1c33-1d86-4727-adcb-a9a68da32ce6.pdf

Interim / Quarterly Report

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Compared Certify Comparentle Features of 1H Performance

• Application Solutions business

  • Revenue up 10%
  • Operating contribution up 87%
  • · License revenues down 44%
  • . More progress to be made

• Technology Solutions business

  • Revenue up 28%
  • All businesses and geographies up
  • . Qld, Licensing and Enterprise very strong

Procurement Solutions

  • Revenue down by 58%
  • . One major customer and HP Compag merger
  • 103 online customers across Australia via D#3 CustomerNet

Recruitment Solutions

• Revenue up 45%

$\cdot$ / (ey Features of 1H Performance

  • Gross margins slightly positive trend
  • Cash management on target for average days outstanding and aging
  • Corporate overheads (pre Powerlan) down 6%
  • National infrastructure in place Business is running well
  • $\bullet$ Customer Satisfaction $> 90\%$
  • ▶ Customers believe we are doing a good job
  • . IBM Partner of the Year
  • . Microsoft Large Account Reseller of the Year
  • . Member of HP Partner Advisory Board ▶ Suppliers believe we are doing a good job
  • · Dividend of 2.5 cents per share
  • · Share price has held
  • ▶ Shareholders patient

CAtlook and Focus for 2H 2003

  • · Market outlook
  • . Don't mention the War
  • . No "Silver Bullet"
  • Application Solutions business
  • . Continuing improvement with profitability from services to mprove
  • Some challenges with software partners
  • Technology Solutions business
  • Continuing strong performance with former JV contracts
  • · Procurement Solutions
  • · Similar performance to 1H
  • . More preferred supply agreements, market coverage and CustomerNet registrations
  • · Recruitment Solutions
  • Similar performance to 1H
  • · Strategic considerations
  • . Market downturn with higher level of costs
  • Scale and balance sheet
  • Total Shareholder Return (TSR)