DATA#3 LIMITED — Interim / Quarterly Report 2005

Mar 9, 2005

1H Headline "In a relatively buoyant but competitive market, we reported first half earnings at the top end of our advice. The interim dividend represents a 25% increase on the previous corresponding period and we are well placed for another strong year"

	1H 2003/04 \$'000	1H 2004/05 \$000	Change $\sigma_{\alpha}$
Product Revenue	73,146	76,331	$+4%$
· Server, networking, PCs		33,500
· Software Licensing		27,700
· Enterprise infrastructure		15,100
Services Revenue	14,859	18,116	$+22%$
• IT Services		10,700
· Recruitment		6,100
· Application		1,300
Other	284	461
Total Revenue	88,289	94,908	$+7.5%$

	1H 2003/04 \$'000	1H 2004/05 \$000	Change $\mathbf{v}_0$
Revenue	88,289	94,908	$+7.5%$
EBITDA	2,749	3,102	$+13%$
Profit before Tax	2,330	2,685	$+15%$
Profit after Tax	1,552	1,802	$+16%$
Earnings per share (cents)	10.5	11.9	$+13%$
Dividends • DPS (cents) • as % NPAT	6.0 57%	7.5. 63%	$+25%$

	2002/03 Full year	2003/04 Full year	2004/05 ΣН
NPAT	\$2.259M	\$3.393M	\$1.802M
"Underlying" Op. cashflow	\$1.0M	\$4.3M	\$1.5M
Basic earnings per share	15.5	22.8	11.9
Interim dividend per share • cents $\bullet$ as % 1H NPAT • as % 1H Op. cashflow	2.5. 555% n/a	6.0 57% 19%	7.5 63% 75%
Total dividend per share • cents • as % Full Year NPAT	10.0 65%	15.5 68%

	31/12/03 \$'000	30/6/04 \$'000	31/12/04 \$'000
Current Assets
$-cash$	2,546	6,797	3.960
*Receivables	23,406	27,673	31,952
*Inventory	1,470	1,115	987
Total	28,496	36,513	37,639
Non-current Assets
«Plant & Equipment	1,579	1,367	1,099
*Intangibles	5,150	4,985	4,460
Total	7,594	7,690	6,343
Current Liabilities
*Payables	22,050	28,467	27,448
Interest bearing	165	64	30
Total	24,194	31,423	30,596
Non-current Liabilities
Interest bearing	68	0	O
Total	1,121	848	865
Net Assets	10,775	11,932	12,521

	1H	1H
	2003/04 \$'000	2004/05 \$'000
Operating activities • As reported	(10, 307)	(2, 179)
$\cdot$ Adjustment $^1$ • "Underlying" op. cashflow	15,000 4,693	3,700 1,521
1 Adjustment for payments made to suppliers in respect of cash received in preceding period (from former QSS joint venture sales contract).
Investing activities	(71)	589
Financing activities	(1,735)	(1, 247)
Cash at end of period	2,546	3,960

Business Area	Vendor	Competitive Position OLD.	Competitive Position NSW.	Competitive Position VIC.
Server, Networking and Personal Systems Product	IBM HP	Leader.	One of many One of many	One of many One of many
IT Services «Microsoft +Cisco Networking/Security -Selective Outsourcing *Remote Management	Microsoft Cisco n/a n/a	TOD2		No presence
Enterprise Computing	TBM HP	teader Leader
Licensing Solutions	Microsoft Other	Leader Leader
Microsoft application Solutions	Microsoft		No. presence	No presence
Recruitment Solutions	n/a	Top 2	One of many	One of: many

Business Area	Vendor	Competitive Position OLD		Competitive Position. NSW		Competitive Position VIC:
Server, Networking and Personal Systems Product	TRM НP	Leader	x √	One of many One of many	√ √	One of many One of 有语样化	√ √
IT Services «Microsoft .Cisco Networking & Security Selective Outsourcing *Remote Management	Microsoft Cisco n/a n/a	Top 2	v ν √ √		√ x √ $\sqrt{ }$	Nö presence	x ν ν ν x
Enterprise Computing	IBM HP	Leader Leader	√ √		√ x		$\sqrt{ }$ ν
Licensing Solutions	Microsoft Other	Leader Leader	√ √		x x		√ √
Microsoft application Solutions	Microsoft		√	No. presence		No. presence
Recruitment Solutions	n/a	Top2	√	One of many	√	One of many	√

Business Area	PRIMARY COMPETITOR(S)	COMPETITIVE DIFFERENTIATION
Server, Networking and Personal Systems Product	Deli	High touch; solution sale incorporating services; margin recovery; work with vendor
IT Services Microsoft Cisco Networking & Security	Dimension Data Dimension Data	Expertise; lower cost structure; practicality and pragmatism
Selective Outsourcing «Remote Management	Global outsourcers Specialist providers	Work with them; lower cost structure; Target existing customers only
Enterprise Computing	Synergy Plus; Fujitsu	Expertise; stronger vendor relationships
Licensing Solutions	Software Spectrum	Expertise; Software Asset Management
Microsoft application Solutions	Avanade	Target smaller work; CRM specialty
Recruitment Solutions	Many	We understand IT; target existing customers

Progress against Plan Deliverables
• A national IT Services business a significant enabling of product sales • small decline in financial contribution • a repositioning for growth in 2006	ON TRACK ON TRACK BEHIND
• Increasing contribution from server, networking and PC product sales	ON TRACK
• Increases in contribution from • Enterprise Infrastructure • Licensing • Recruitment Solutions	BEHIND AHEAD AHEAD
$\bullet$ Contribution from MAS	ON TRACK
An improved result over 2004	ON TRACK