DATA#3 LIMITED — Interim / Quarterly Report 2020

Feb 18, 2020

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FY20 Interim Results Briefing

19[th] February, 2020

Contents

Our Business	3
Digital Transformation	7
1H FY20 Summary	10
1H FY20 Financial Performance	12
FY20-22 Trends	17
FY20 Outlook	20
Q&A	23

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2

Our Business

3

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

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4

Data[#] 3 in FY20

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1,200+ staff

Founded in 1977

Listed on the ASX in 1997

$1.4 Billion in revenue in FY19

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• 9 offices across Australia and Fiji

3 integration centres

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Approx. 60% revenue under contract

Target market enterprise and government Largest enterprise software supplier in Asia Pacific Over 2,000 services projects per year

5

Our Solutions

Cloud

Consulting

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Modern Workplace

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Security

Project Services

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Data & Analytics

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Connectivity

Support Services

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6

Digital Transformation

7

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Digital Transformation

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Blockchain

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Artificial Intelligence

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Internet of Things

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3D Printing

FOUNDATION LAYER

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Connectivity
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Cloud Modern Workplace Security
(Public & Private)
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8

Partnering with leading global suppliers

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9

1H FY20 Summary

10

“We are very pleased with the first half performance, maintaining the longer-term growth trend. The market is growing as digital transformation fuels the overall information technology spend, and we have seen sustained large project activity.

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. Earnings per share increased by 41.5% to 5.65 cents.

The board declared an interim dividend of 5.1 cents per share, up 41.7% on PCP and representing a 90.3% payout ratio”

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11

1H FY20 Financial Performance

12

1H FY20 financial results

Total Revenue	Up 11.6%	$718.9M
Sales revenue	Up 11.6%	$718.0M
Public cloud revenue (included above)	Up 76.5%	$251.9M
Other revenue		$0.9M
Gross Profit (excluding Other revenue)	Up 7.7%	$88.6M
Gross margin %	Down 0.5 pp	12.3%
EBIT	Up 44.6%	$12.3M
EBIT margin %	Up 0.4 pp	1.7%
NPBT	Up 40.6%	$12.7M
NPAT (excluding minority interests)	Up 41.5%	$8.7M
Basic earnings per share	Up 41.5%	5.65 cents
Dividend per share	Up 41.7%	5.10 cents

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13

Sustained revenue growth, boosted by cloud

Total revenue ($M)

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800
718.9
700 644.4
600 547.3
506.0
500 457.5
406.4
400
300
200
100
0
1H15 1H16 1H17 1H18 1H19 1H20
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Revenue growth fueled by digital transformation projects and cloud-based solutions.

Total revenue includes $251.9M of public cloud revenues, up 76.5% on PCP.

Public cloud revenue ($M)

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300
251.9
200
142.7
86.1
100
58.0
0
1H17 1H18 1H19 1H20
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Approximately 60% of revenue under contract. All business units and regions on or ahead of plan, except for Consulting.

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14

Sustained earnings growth

NPBT ($M)

Basic EPS (cents)

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14 12.7
12
10 9.0
8.1
8
6.1
5.2
6
4.0
4
2
0
1H15 1H16 1H17 1H18 1H19 1H20
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NPAT ($M) – excluding minority interests

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10
8.7
8
6.1
5.7
6
4.3
3.6
4
2.7
2
0
1H15 1H16 1H17 1H18 1H19 1H20
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5.65
6
5
3.99
3.71
4
2.77
3 2.32
1.76
2
1
0
1H15 1H16 1H17 1H18 1H19 1H20
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DPS (cents)

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6
5.10
5
3.60
4 3.35
3 2.50
2.10
1.60
2
1
0
1H15 1H16 1H17 1H18 1H19 1H20
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15

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 29.8 days – ahead of target and industry best practice

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16

FY20–22 Trends

17

Market trends

Digital transformation is a high priority in business strategy

The overall IT market growth is fuelled by digital transformation

A convergence of Information Technology (IT) & Operational Technology (OT) is creating opportunity

Cybersecurity poses increasingly larger threats and continues to grow

Artificial intelligence & robotics are in early adoption phase

Data analytics are increasingly mainstream

Superior customer service remains a key differentiator

Attracting and retaining skilled resources is increasingly competitive

Vendor channel models are changing with a greater emphasis on adoption and customer experience

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18

Key priorities in FY20

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– Services improving margins

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– Digital enablement helping our customers succeed in their digital transformation

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– Customer experience unifying every customer touchpoint across our company to improve the overall customer experience

– Vendor relationships investing with the right vendors, and working their channel plans to our mutual benefit

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19

FY20 Outlook

20

2H business outlook

External factors:

• Market remaining buoyant

• Global geo-political influences on local market

• Monitoring infrastructure supply chain impacts

Internal factors:

• Solid pipeline of integration projects (hardware, software and services)

• Expected improvement in Consulting contribution

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21

FY20 outlook

We see ongoing growth in the Australian IT market, with digital technologies leading business transformation in both the commercial and public sectors, and we believe we remain well positioned to capitalise on these opportunities.

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 sustainable earnings growth over time.

22

Q&A

23

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.

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

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