DATA#3 LIMITED — Interim / Quarterly Report 2008

Mar 9, 2008

2007 ‘brand’….

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1. 2008 1h ‘in a nutshell’ 2. financial performance 3. outlook for full year 4. spotlight on licensing solutions

1. 1h ‘in a nutshell’

...1h ’in a nutshell’..

“We are delighted to continue the run of ‘best ever’ performances we have delivered over the past five years. The interim dividend of 18 cents per share is a 29% increase on the previous corresponding period.

In a market where the balance between skills and costs remains delicate and in which customers are increasingly looking to get more for their ICT investment, we are well placed to exceed the performance of the previous year”

Richard Anderson – Chairman

...1h ’in a nutshell’..

Key Points:

• revenue up 16%

• software licensing solutions up 25%

• infrastructure solutions up 8%

• people solutions up 18%

• gross margin % held at 20.4%

• expenses held at 85.2% of gross margin

• ‘cross-sell’ index up at 2.25

• npat of $3.7m up 22%

• dividend of 18cps up 29%, being 75% payout

• strong cashflow and no debt

• permanent staff numbers up from 356 to 401

• market easing and will continue to do so

2. financial performance

...the to line p

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200
150
$M 100
50
0
1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08
Total revenue Under contract
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revenue + 16% to $157.3m under contract + 19% to $90.6m

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40
$ % 20
0
1H 1H 1H 1H
GM$ 19.716 23.198 27.499 32.01
GM% 20.9 20.6 20.3 20.4
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gross margin $ + 16% gm% held at 20.4% of revenue

GM$ GM%

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staff expenses
75
% 70
65
2004/05 2005/06 2006/07 2007/08
as % GM 67 68 68.4 70.7
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operating expenses

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20
% 10
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2004/05 2005/06 2006/07 2007/08
as % GM 19.9 17.4 16.9 14.6
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staff + operating expenses

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88
% 86
84
2004/05 2005/06 2006/07 2007/08
as % GM 86.96 85.37 85.25 85.22
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...the middle line

combined staff costs & operating expenses as a % of gross margin remained unchanged

net profit after tax

eps and dps

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1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08
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• 22% to $3.7m

eps + 15.5% to 22 cents dps + 29% to 18 cents 75% payout of npat

cashflow

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operating cash flow
net change in cash
closing cash balance
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operating cash flow seasonality - outflow in 1H & inflow in 2H

…the bottom line

…(historical) yield

					Yield
			Company		AFR
					7/3/08
			Data#3		6.78%
			Oakton		6.66%
			SMS		4.89%
			ASG		3.60%
			Commander		16.67%
			Computercorp		0%

…the areas of s ecialisation p

Laurence Baynham …group general manager

• BA Business (Hons) - Uni of East London

• 25 years in ICT Industry – sales and management

• Joined Data[#] 3 in 1994

• Responsible for initiating

• Licensing Solutions

• JVs into Qld Government software & hardware supply

• Data Centre Solutions

• Group GM for 4 years responsible for all areas of specialisation across 11 locations

...the areas of specialisation

Software Licensing Solutions software licensing and software asset management to optimise the acquisition and management of software licensed in volume from global vendors

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Infrastructure Solutions

the design, procurement, deployment, support and operation of desktop, network and data centre hardware and software solutions

People Solutions

recruitment and/or contracting of ICT people

...revenue trends

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$M 40
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1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08
Software Licensing Solutions revenue
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licensing + 25% to $62.4m

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1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08
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infrastructure + 8% to $73.6m

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Infrastructure Solutions revenue
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1H 2004/05 1H 2005/06 1H 2006/07 1H 2007/08
People Solutions revenue
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people + 18% to $20.8m

...performance vs expected

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Software Licensing Solutions market leadership; double digit growth; similar margins exceeding expectations Infrastructure Solutions single digit growth; issues with skills shortage meeting expectations People Solutions high double digit growth; margins tight offset by lower expense

below expectations

3. outlook for full year

…assumptions for full year

Macro economy remain positive given continued strength in corporate profitability …signs of pressure on corporate profitability

Customer attitude to ICT

ICT Solutions are strategic and investment will be maintained …signs of pressure and pricing is competitive

Our people will be able to recruit and retain and deploy to deliver revenue …exceeding expectations given significant recruitment early in 2h Ability to compete and win

maintain or improve current success rates against competitors …revenue growth consistent with strong competitive position

Key vendors retain technology and market leadership and stronger partnerships …remains true but competition emerging with some vendor services companies Emerging technologies

will be able to predict their effect and adapt accordingly …remains true

….recruitment ex CDR

Data#3 accelerates organic growth recruiting over 40 people previously with Commander

Significantly enhances presence outside Queensland and opens new offices in Adelaide and Perth

— BRISBANE, Australia 22 February 2008

….recruitment ex CDR

Location	Area of specialisation	# people	Skills
Western Australia	Licensing	5	Management and sales
South Australia	Licensing	5	Management and sales
	Infrastructure	9	Management, sales and solution design
Victoria	Infrastructure	7	Sales, design and solution delivery
New South Wales	Infrastructure	17 +	Management, sales, design and solution delivery
Queensland	Licensing	1	Sales
	Infrastructure	1	Solution delivery
Total confirmed		45 +	$7.5M investment incl p/roll oncosts and operatingcosts

….what does it mean?

In broad terms:

• new customers and revenues

• the best people from CDR

• full national footprint increasing scale outside Qld

• opportunity to gain market share and improve profit margins in a full year

• ‘acquisition like’ without integration, cultural and accounting issues but needing time to ramp up revenue

Immediate focus:

• offices and systems

• customer conversion

• GM$ generation

….outlook for full year

“There is potential for the market to tighten in the second half as the global finance sector issues play out and our focus has been to recruit key management and sales professionals to increase our market coverage and share”

“The strong first half underpins the outlook and we believe we remain well positioned to improve financial performance for the full year over the record 2007 result and to continue to deliver dividends near the top of the sector.”

4. spotlight on licensing

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1. introducing Brad Colledge 2. licensing explained 3. historical performance 4. sustaining performance

…introducin Brad Colled e g g

General Manager Licensing Solutions

• B. Business Management (QUT - 1988)

• Graduate program NCR Australia 1989

• IT Industry for 19 years

• Joined Data[#] 3 in 1995

• Started Software Licensing team in 1995 in conjunction with Laurence Baynham

• Grown Revenue from $1M in ‘95 to $100M in 2007 - #1 in Australia

…licensin ex lained g p

Software Licensing Solutions:

Provides

• volume licensing from vendors leading the market globally

• Microsoft, Symantec, Adobe, Citrix, VM Ware, Computer Associates, IBM, Trend Micro, McAfee

• world class Software Asset Management consulting services

• Microsoft World Wide Award for Software Asset Management, 2006 & Finalist in 2007

Customers

• Local, state and federal government

• Academic sector – universities and schools

• Commercial customers across all industry sectors

…1h historical erformance p

-30 20 70 $M % revenue 19.9 27.7 39.9 49.8 62.4 grow th 20 39 44 25 25 1H 03/04 1H 04/05 1H 05/06 1H 06/07 1H 07/08	-30 20 70 $M % revenue 19.9 27.7 39.9 49.8 62.4 grow th 20 39 44 25 25 1H 03/04 1H 04/05 1H 05/06 1H 06/07 1H 07/08
	1H 03/04							1H 04/05						1H 05/06						1H 06/07						1H 07/08
revenue	19.9							27.7						39.9						49.8						62.4
grow th	20							39						44						25						25

Proven year on year growth every year for last 12 years

Data#3’s differentiators:

• Deep understanding of customers’ requirements

• Experienced Licensing Consultants

• Vendor certified specialists

• Licensing Online + hosted Software asset register – unique IP

• Tailored reporting systems

…sustainin erformance g p

Imperatives

• Continued investment in people (expertise)

• Continue to achieve relevant vendor certifications

• Efficient operational processes

• Effective IT systems

Opportunities

• Gain ROI from recent geographic growth

• Increase focus on mid size organisations

• Support existing vendors strategies and emerging technologies

• Add complementary vendors to existing portfolio

• Continue to adapt offerings to customer’s changing requirements

• Software as a Service (SaaS)

2007 ‘brand’….