DATA#3 LIMITED — Interim / Quarterly Report 2019

Feb 19, 2019

==> picture [112 x 32] intentionally omitted <==

FY19 Interim Results Briefing

20[th] February, 2019

Contents

Our Business Solving Business Challenges 1H FY19 Summary 1H FY19 Financial Performance FY19-21 Trends FY19 Outlook Q&A

3 8 10 12 18 20 23

==> picture [40 x 11] intentionally omitted <==

2

Our Business

3

Our vision is to harness the power of people and technology for a better future.

==> picture [40 x 11] intentionally omitted <==

4

Data[#] 3 in FY19

==> picture [75 x 75] intentionally omitted <==

==> picture [74 x 75] intentionally omitted <==

==> picture [75 x 75] intentionally omitted <==

==> picture [75 x 75] intentionally omitted <==

1100+ employees

Founded in 1977

Listed on the ASX in 1997

$1.2 Billion in revenue in FY18

==> picture [149 x 149] intentionally omitted <==

• 9 offices across Australia and Fiji

3 integration centres

• 3 data centres

==> picture [42 x 199] intentionally omitted <==

17.8M individual products sold to customers in FY18

4,867 transacting customers in FY18

60,950 service desk calls by customers in FY18

2,236 professional services projects in FY18

5

Our Solutions

Cloud

==> picture [40 x 42] intentionally omitted <==

Mobility

==> picture [36 x 39] intentionally omitted <==

Security

==> picture [32 x 33] intentionally omitted <==

Data & Analytics IT Lifecycle Management

We work with our customers to enable their business objectives, utilising our technology solution categories.

Delivered under our PDO2 Customer Solution Lifecycle methodology: Position – Plan – Design – Deploy – Operate – Optimise

CONSULTING PROJECT SERVICES SUPPORT SERVICES

==> picture [40 x 11] intentionally omitted <==

6

Partnering with leading global suppliers

==> picture [186 x 69] intentionally omitted <==

==> picture [138 x 110] intentionally omitted <==

==> picture [103 x 129] intentionally omitted <==

==> picture [142 x 89] intentionally omitted <==

7

Solving Business Challenges

8

Melbourne Cricket Club Customer Story

Data[#] 3 worked with the MCC/MCG on its digital transformation journey to improve customer experience.

• Scalable, secure Wi-Fi infrastructure

• Real time customer information

• Data and analytics to improve service levels inside and outside the stadium

==> picture [157 x 118] intentionally omitted <==

9

1H FY19 Summary

10

“We are very pleased with the first half performance, delivering a very significant improvement compared to the previous corresponding period (PCP) and returning to the longer term growth trend.

The market is growing as digital transformation fuels the overall information technology spend, and we have experienced an increase in large project activity and a steady pipeline of opportunities. The current period result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and we are delighted with the rapid growth in our cloud-based business.

NPAT and EPS increased by 126.7% compared to the PCP result.

The board declared an interim dividend of 3.6 cents per share, up 125.0% on PCP and representing a 90.2% payout ratio”

==> picture [40 x 11] intentionally omitted <==

11

1H FY19 Financial Performance

12

1H FY19 Performance Summary

1H FY19 Performance Summary
Revenue	Up 17.7%	$644.4M
Product	Up 19.2%	$532.2M
Services	Up 11.3%	$111.4M
Public cloud (included in Product & Services above)	Up 65.7%	$142.7M
Other Revenue		$0.8M
Gross Profit(excluding Other Revenue)	Up 14.7%	$82.3M
Product	Up 36.3%	$43.2M
Services	Down 2.3%	$39.1M
Gross Margin	Down 0.3 pp	12.9%
EBITDA	Up 98.1%	$9.8M
EBIT	Up 146.7%	$8.5M
NPBT	Up 123.3%	$9.0M
NPAT(excluding minority interests)	Up 126.7%	$6.1M
Earnings per share	Up 126.7%	3.99 cents
Dividend per share	Up 125.0%	3.60 cents

==> picture [40 x 11] intentionally omitted <==

13

Sustained Revenue Growth

==> picture [820 x 157] intentionally omitted <==

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

Product revenue ($M) Services revenue ($M) Total revenue ($M)
600 532.2 120 111.4 700 644.4
100.0
500 413.9 446.6 100 85.6 91.3 600 506.0 547.3
371.1 75.8 500 457.5
400 332.7 329.7 80 399.1 406.4
65.1
400
300 60
300
200 40
200
100 20 100
0 0 0
1H14 1H15 1H16 1H17 1H18 1H19 1H14 1H15 1H16 1H17 1H18 1H19 1H14 1H15 1H16 1H17 1H18 1H19
----- End of picture text -----

Infrastructure $172.0M + 34.1% Software Licensing $360.2M + 13.2%

Consulting $13.4M + 17.5% Professional Services $27.7M + 24.1% Support Services $41.4M + 8.1% Recruitment / Contracting $26.9M + 11.6% Other Services $ 2.0M - 48.3%

Strong growth in product revenues and solid growth in services, fueled by digital transformation projects.

Total revenue included $142.7M of public cloud-based revenues, up 65.7% on PCP.

==> picture [40 x 11] intentionally omitted <==

14

Strong growth in Product Gross Profit

Product gross profit ($M)

==> picture [908 x 145] intentionally omitted <==

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

Services gross profit ($M) Total gross profit ($M)
50 50 100
43.2
39.2 40.0 39.1 82.3
40 34.4 34.7 40 34.0 80 68.4 74.0 71.8
28.7 30.5 31.7 28.8 31.9 57.5 62.4
30 30 60
20 20 40
10 10 20
0 0 0
1H14 1H15 1H16 1H17 1H18 1H19 1H14 1H15 1H16 1H17 1H18 1H19 1H14 1H15 1H16 1H17 1H18 1H19
----- End of picture text -----

Product gross profit increased by 36.3% compared to relatively weak PCP. Product gross margin increased from 7.1% to 8.1%. Services gross profit and gross margin decreased with the change in mix from decommissioning the Data[#] 3 Cloud.

==> picture [40 x 11] intentionally omitted <==

15

Return to trend growth

NPBT ($M)

EPS (cents)

==> picture [297 x 124] intentionally omitted <==

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

10 9.0
8.1
8
6.1
6 5.2
3.7 4.0
4
2
0
1H14 1H15 1H16 1H17 1H18 1H19
----- End of picture text -----

==> picture [305 x 120] intentionally omitted <==

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

5
3.99
3.71
4
2.77
3
2.32
1.67 1.76
2
1
0
1H14 1H15 1H16 1H17 1H18 1H19
----- End of picture text -----

NPAT ($M) – excluding minority interests

DPS (cents)

==> picture [292 x 125] intentionally omitted <==

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

7
6.1
5.7
6
5 4.3
3.6
4
2.6 2.7
3
2
1
0
1H14 1H15 1H16 1H17 1H18 1H19
----- End of picture text -----

==> picture [305 x 120] intentionally omitted <==

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

5
4 3.35 3.60
3 2.50
2.10
2 1.50 1.60
1
0
1H14 1H15 1H16 1H17 1H18 1H19
----- End of picture text -----

==> picture [40 x 11] intentionally omitted <==

16

Solid Balance Sheet & Cash Flow

• Strong balance sheet with no material borrowings

• Any borrowings are back-to-back with customer contracts

• Cash flow ‘seasonality’ consistent with previous years

• Average DSOS of 28.6 days – ahead of target and industry best practice

==> picture [40 x 11] intentionally omitted <==

17

FY19–21 Trends

18

Market Trends

• Digital transformation is a high priority in business strategy

• The overall IT market growth is fueled by digital transformation

• Cyber security is our customers’ number one priority

• Data and analytics are leading drivers of competitive differentiation

• Cloud provides the platform for automation, artificial intelligence, blockchain and many more innovative technologies

• Skilled resources are becoming more scarce

==> picture [40 x 11] intentionally omitted <==

19

FY19 Outlook

20

2H Business Outlook

• Market remaining buoyant

• Solid 2H pipeline with large integration projects (hardware, software and services)

• FY19 result expected to be less heavily skewed to 2H than PCP

• Expected improvement in Discovery Technology’s profit contribution, following the loss in 1H

==> picture [40 x 11] intentionally omitted <==

21

FY19 Outlook

The strong 1H performance and pipeline of opportunities for the 2H give us confidence that we will achieve our full year financial objective, being to deliver earnings growth and improved returns to shareholders. We are confident that we have the right strategy to underpin sustainable growth in long term shareholder returns.

==> picture [40 x 11] intentionally omitted <==

22

Q&A

23

Appendix 1 – Financial Summary

==> picture [573 x 421] intentionally omitted <==

==> picture [40 x 11] intentionally omitted <==

24

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 information given 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.

This presentation is not (and nothing in it should be construed as) an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security in any jurisdiction, and neither this document nor anything in it shall form the basis of any contract or commitment. The presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.

The Company has prepared this presentation based on information available to it, including information derived from publicly available sources that have not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness or reliability of the information, opinions and conclusions expressed.

Any statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. To the maximum extent permitted by law, none of the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

==> picture [40 x 11] intentionally omitted <==

25

==> picture [167 x 46] intentionally omitted <==

www.data3.com.au 1300 23 28 23 Linkedin.com/company/data3 Twitter.com/data3limited Facebook.com/data3limited YouTube.com/data3limited

==> picture [65 x 64] intentionally omitted <==

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

==> picture [40 x 11] intentionally omitted <==

26