DATA#3 LIMITED — Interim / Quarterly Report 2011

Mar 3, 2011

Data#3 (DTL)1H 2011 results presentation

March 2011

Highlights

• • Total revenue \$378M +23%
• Product revenue \$325M +22%
• –Services revenue \$52M +31%
• 61% under contract
• •Sales margin 14.6% up from 14.2%
• •EBIT \$10.3M +62%

EBIT margin 2.7% up from 2.1%

• • Net profit before tax \$11.7M +71%
• –Earnings per share 51.6 cents +68%
• •Dividends per share 38 cents +65%

Growingrevenue and profit

• •Market share gains
• •Services @ higher margins
• •Productivity gains

Growingshareholder returns

• •Driven by organic growth
• • Very high ROE (6 month returns shown on graph)
• •74% dividend payout

Strongb/sheet and cash flows

Net operating cash flow (\$M)

• • Continued growth in net tangible assets
• •Cash flow seasonality
• • Strong balance sheet with no debt

Performance of the areas of specialisation

Software Licensing more growth

• • Total revenue \$219.9M +22%
• •¹⁶th year of consecutive growth
• • Appointed to Microsoft worldwide partner engagement board
• • First sales of Microsoft's 'cloud-based' desktop software
• • First customers for new worker productivity practice

Infrastructure Solutions strong growth

• • Total revenue \$138.0M +24%
• Product \$105.5M +21%
• Project services \$16.6M +58%
• Managed services \$16.0M +21% 73.6
• • New govt panel contracts in Qld, ACT & Vic
• •New integration centre in NSW

People Solutions returns to growth

Revenue (\$M)

• •Total revenue \$18.4M +21%
• •Contractor numbers up 33%
• • New national sales leadership in place
• •New operational systems
• •Lower operating costs

Continued reinvestment to drive productivity and efficiency

• • Internal systems investment +9% over previous
• •Staffing investment +18%
• • Internal staff costs & operating expenses as % of gross margin down from 85.4% to 81.3%

Market overview

Market opportunity

Australian market is large\$30.3B in 2010

Our share is small 2% in 2010

	2 0 1 0 \$ B	2 0 1 1 \$ B	2 0 1 2 \$ B	C A G R 2 0 1 0- 2 0 1 3		2 0 1 0 \$ B	D T L r e v e n u e \$ M	D T L k % t m a r e
d H a r a r e w	1 0 1	1 0 2	1 0 6	% 2. 2	d H a r w a r e	0 1 1	9 1 4	9 % 1.
f S t o w a r e	1 4 0	1 4 6	1 5 1	3 9 %	f S t o a r e w	1 4 0	3 2 0	% 2. 3
S i e r v c e s	6. 2	6. 7	2 7	8 1 %	S i e r v c e s	6. 2	8 5	1. 3 %
l T I T t o a	3 0 3	3 1. 5	3 2. 9	2 % 4	l T I T t o a	3 0 3	5 9 9	2. 0 %
h G t r o w		3. 9 %	4 4 %

Significant opportunity for continued organic growth

Market sector characteristics

Deep portfolio with broad access to market

Technology consumptionmodel

Data#3 can engage across all models

Supplier revenuemodel

Cloud in perspective

'traditional' product consumption remains the norm

Cloud in perspective

• • Current status
• Still early stage / niche adoption
• –Lots of 'hype'
• Significant global investment
• Appearing in tender requirements
• –Significant long term potential
• • Our positioning
• We are providing cloud solutions today
• –We are extending our offerings to include cloud

Software Licensing

• • Modest increase in profit over 2H 2010
• • New telesales team focused on mid-market < 500 seatsmid-market < 2000 seats
• • Supply chain gains through supplier automation
• • Investment in new online customer portal in 2011/12
• • Enhance profile in software licensing as a service

Infrastructure Solutions

• • Solid increase in profit over 2H 2010
• •New telesales team focused on
• • Supply chain gains through supplier automation
• • Investment in new online customer portal in 2011/12
• •Decisions on cloud offerings
• •Consulting practice commences

People Solutions

• •Improving market
• • Strong increase in profit over 2H 2010

Internal investment

• • Internal systems investment +45% over 2H 2010
• Staffing investment +21%
• • Property and equipment +48%

Summary

•2H 2011 earnings expected to at least equal 2H 2010

.....the company's financial objective for the second half is to at least equal the performance of the previous second half. This would mean solid underlying growth given some shift in revenue and interest income to the first half and increases in internal investment in the second half, particularly in new premises and systems

Summary

• •Operating in attractive markets
• • Significant potential for attractive organic growth given market size and market share
• •Delivering growing earnings
• •Increasing dividend
• • Well positioned to continue growing shareholder value

Appendix – Financial summary

	1 H 2 0 1 1	1 H 2 0 1 0
	\$ ( ) '0 0 0	\$ ( ) '0 0 0	h % C a n g e
b R t e v e n u e y s e g m e n :
d P t r o u c	\$ 3 2 4, 7 6 2	\$ 2 6 6, 7 5 3	2 2 % +
S i e r v c e s	\$ 5 1, 6 4 4	\$ 3 9, 4 1 6	3 1 % +
h O t e r r e v e n u e	\$ 1, 3 6 1	\$ 5 0 0
l T R t o a e v e n u e	\$ 3 7 7, 7 6 7	\$ 3 0 6, 6 6 9	2 3 % +
f b l R i i i t e v e n u e y a r e a o s p e c a s a o n :
f S L i i t o w a r e c e n s n g	\$ 2 1 9, 9 2 5	\$ 1 7 9, 8 5 9	2 2 % +
f l I S i t t t n r a s r u c u r e o u o n s	\$ 1 3 8, 0 4 6	\$ 1 1 1, 0 2 8	% 2 4 +
l l P S i t e o p e o o n s u	\$ 1 8, 4 3 5	\$ 1 5, 2 8 2	% 2 1 +
\$ l i T t o a g r o s s m a r g n	\$ 5 4, 8 5 9	\$ 4 3, 4 1 3	% 2 6 +
l i % T t o a g r o s s m a r g n	% 1 4 6	% 1 4 2
E B I T D A	\$ 1 0, 6 6 8	\$ 6, 8 0 3	% 5 7 +
E B I T	\$ 1 0, 3 2 3	\$ 6, 3 5 8	% 6 2 +
i % E B I T m a r g n	% 2. 7	% 2. 1
N P B T	\$ 1 1, 6 6 4	\$ 6, 8 2 2	% 7 1 +
N P A T	\$ 7, 9 4 0	\$ 4, 7 2 6	% 6 8 +
h i E a r n n g s p e r s a r e	6 5 1. t c e n s	3 0 7 t c e n s	6 8 % +
d d h i i D v e n p e r s a r e	3 8 0 t c e n s	2 3 0 t c e n s	6 % 5 +

Disclaimer

This presentation has been prepared by Data#3 Limited ("the Company"). It contains general background information about the Company's activities current as at the date of the presentation. It is informationgiven in summary form and does not purport to be complete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions.

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