DATA#3 LIMITED — Interim / Quarterly Report 2022

Feb 16, 2022

Appendix 4D

Data[[#]] 3 Limited

Name of entity Data[[#]] 3 Limited ABN 31 010 545 267

Reporting period Half year ended 31 December 2021 Previous corresponding period Half year ended 31 December 2020

Results for announcement to the market

Results				$’000
Revenues from ordinary activities	up	16.6%	to	999,297
Profit from ordinary activities after tax attributable to members	up	31.9%	to	12,353
Net profit for the period attributable to members	up	31.9%	to	12,353
Dividends	Amount per		Franked amount
	security			per security
Current period
Interim dividend		7.25 cents		100%
Previous corresponding period
Interim dividend		5.5 cents		100%

The record date for determining entitlements to the dividend is 17 March 2022. The dividend is payable on 31 March 2022.

Brief explanation of the figures reported above

Please refer to the Review of Operations in the Directors’ Report which begins on page 1 of the attached Interim Financial Report for the half year ended 31 December 2021.

Net tangible assets per security	Current period	Previous period
Net tangible asset backing per ordinary security	$0.24	$0.21

DATA[#] 3 LIMITED APPENDIX 4D HALF YEAR 31 DECEMBER 2021

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Data[#] 3 Limited ABN 31 010 545 267

Interim Financial Report Half year ended 31 December 2021

Page Contents

• 1 Directors’ report

• 4 Auditor’s independence declaration

• 5 Condensed consolidated statement of profit or loss

• 6 Condensed consolidated statement of other comprehensive income 7 Condensed consolidated balance sheet

• 8 Condensed consolidated statement of changes in equity

• 9 Condensed consolidated cash flow statement

• 10 Notes to the condensed consolidated financial statements

• 14 Directors’ declaration

• 15 Independent auditor’s review report

Directors’ report

Your directors present their report on Data[#] 3 Limited and its subsidiaries (together referred to as “Data[#] 3”, “the group”, or “we, our, or us”) for the half year ended 31 December 2021.

1. Directors

The following persons were directors of Data[#] 3 Limited for the entire half year and up to the date of this report:

Richard Anderson Laurence Baynham Mark Esler Mark Gray Leanne Muller

2. Review of operations

Summary of our 2022 financial year (FY22) plan

The Australian IT market is predicted to grow at a record rate, and this will allow us to continue to accelerate growth of our services businesses and further cement our leadership position.

As anticipated, technology and digital transformation are playing a leading role in Australia’s economic future, with steady increases in demand from our corporate and public sector customers. Technology research consultancy Gartner forecasts spending on technology products and services in Australia to exceed $109 billion in calendar year 2022, up 6.5% from 2021.

Consequently, the pipeline of large integration project opportunities continues to build, and our services growth will continue to improve our margins and complement our software and infrastructure business units. These business units are highly interdependent on Data[#] 3’s services capability to ensure optimal customer outcomes, which is why services growth is so central to our strategy.

While some of the challenges we experienced in FY21 have extended into FY22, we have continued to operate our business effectively while maintaining high levels of service to our customers. Our performance continues to be underpinned by our leading market position, unrivalled supplier relationships, large long-term customer base and highly experienced and committed team.

First half performance

We are particularly pleased with the first half performance, delivering another record result despite the challenging environment, and reflecting solid contributions from each business unit and each Australian region.

While the FY21 backlog caused by the global shortage of computer chips and integrated circuits provided a fast start to FY22, we experienced a similar backlog at the end of December. The overall impact on the first half result was therefore not material, underlining the strength of the result.

Together with our customers and suppliers we have adapted to these shortages and delays, with early ordering and contingency planning now widely adopted. This has resulted in a return to more predictable business activities, and with a less noticeable impact from supply chain delays.

Consistent with our shift in strategic focus, we have increased our software and services revenues, which are not impacted by external supply chain constraints and are largely recurring in nature.

Total revenue increased by 16.6% to $999.3 million, fuelled by continued strong growth in public cloud revenues which increased by 34.8% from $346.1 million to $466.7 million. Growth in our cloud business, while being at lower margins, is a major competitive advantage as it provides essential data for the solutions we provide to our customers.

Once again, this result clearly demonstrates the inherent strength and relevance of our offering in an evolving market. Approximately 65% of our total revenue is now recurring, up from 62% in the previous corresponding period, derived from contracts to fulfil the essential IT requirements of government and large corporate customers. The increase in recurring revenues is also reflective of the deliberate growth in our services and software businesses.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Directors’ report (continued)

2. Review of operations (continued)

Infrastructure sales increased by 1.3% to $205.0 million and Software licensing revenues increased by 20.5% to $648.3 million, boosted by demand for public cloud solutions. Consulting revenues increased by 68.4% to $13.0 million, Project Services revenues increased by 7.8% to $32.5 million, Support Services revenues increased by 47.9% to $69.2 million, and People Solutions recruitment revenues increased by 1.1% to $29.8 million. Discovery Technology revenues decreased from $2.0 million to $1.5 million due to reduced activity in the retail sector, and other revenue decreased from $593,000 to $208,000, reflecting the reduction in interest revenue.

Total gross profit (excluding other revenue) increased by 17.5% from $89.7 million to $105.4 million. Total gross margin increased from 10.5% to 10.6% due to changes in sales mix, with Consulting and Support Services revenues (at higher relative gross margins) growing at a faster rate than Software licensing and public cloud revenues (at lower relative gross margins).

The various pandemic-related impacts on our people continued to be well managed throughout the half, and we have also navigated the growing challenges associated with skills shortages, particularly in our services businesses. We have increased direct headcount by 10% compared to the previous corresponding period, predominantly in our growing services teams. This reflects our leading market position, the attractiveness of our business as a place to work and the benefits of our People Solutions business.

Internal staff costs increased by 13.3% from $66.7 million to $75.5 million, reflecting general remuneration increases in line with the market and services headcount growth. Other operating expenses increased by 19.7% from $9.7 million to $11.6 million reflecting the increased expenditure on our new Microsoft Dynamics 365 ERP system, that is planned to go-live in the second half.

Net profit before tax increased by 33.0% from $13.9 million to $18.5 million, and net profit after tax (excluding minority interests) increased by 31.7% from $9.4 million to $12.4 million. This represents basic earnings per share of 8.01 cents, an increase of 31.5% from 6.09 cents in the previous corresponding period.

The net cash flow from operating activities is typically an outflow in the first half due to the timing of receipts and payments around 30 June. The traditional May/June sales peak produces higher than normal collections before the end of June. These collections generate temporary cash surpluses which subsequently reverse after 30 June when the associated supplier payments occur. The first half net cash outflow from operating activities of $121.6 million was less than the $169.3 million outflow in the previous corresponding period because the temporary cash surplus at 30 June 2021 was lower than the previous year.

The key trade receivables indicator of average days’ sales outstanding remained ahead of target and is in line with industry best practice at 26.8 days.

Outlook

The company is very well positioned to capitalise on a growing market and industry tailwinds, and in particular the opportunities for software and services. The ongoing supply constraints caused by the global shortage of computer chips and integrated circuits is expected to continue into FY23, however as outlined earlier the industry has adapted to these longer lead times, thereby minimising their impact. Meanwhile, we are well placed to capitalise on the opportunities this provides by working closely with our customers and suppliers and leveraging our unrivalled vendor relationships.

We are also confident in our ability to continue to deliver on the company’s long-term strategy and ensure Data[#] 3 is well placed to benefit from digital transformation trends over the next few years. We will continue to focus on driving growth in our services and software businesses to increase recurring revenues and improve our margins.

According to Gartner, services and software are the most rapidly growing areas of the IT market in 2022. We have a robust business, no borrowings, solid long-term customer relationships, committed supplier partnerships, and a highly effective and productive team.

While our strong trading performance has continued at the start of the second half, given that pandemic-related uncertainties remain, especially related to our people, at this stage it would not be prudent to provide specific guidance for FY22. In line with previous years, we continue to expect a sales peak in the months of May and June and a higher profit skew in the second half, and to deliver sustainable earnings growth.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Directors’ report (continued)

3. Dividends

The directors have declared a fully franked dividend of 7.25 cents per share payable on 31 March 2022, an increase of 31.8% on the previous corresponding period, representing a payout ratio of 90.5%.

4. Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4.

5. Rounding of amounts

The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, relating to the “rounding off” of amounts in the directors’ report and financial report. We have rounded off amounts in the directors’ report and financial report to the nearest thousand dollars, or in certain cases to the nearest dollar, in accordance with that instrument unless otherwise noted.

This report is made in accordance with a resolution of the directors.

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R A Anderson

Director

Brisbane 17 February 2022

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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The Directors Data[#] 3 Limited 555 Coronation Drive TOOWONG QLD 4066

Auditor’s Independence Declaration

In relation to the independent auditor’s review for the half-year ended 31 December 2021, to the best of my knowledge and belief there have been:

• (i) no contraventions of the auditor independence requirements of the Corporations Act 2001 ; and

• (ii) no contraventions of APES 110 Code of Ethics for Professional Accountants (including Independence Standards) .

This declaration is in respect of Data#3 Limited and the entities it controlled during the period.

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PITCHER PARTNERS

DAN COLWELL Partner

Brisbane, Queensland 17 February 2022

Brisbane Sydney Newcastle Melbourne Adelaide Perth

Pitcher Partners is an association of independent firms.

An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

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pitcher.com.au
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NIGEL FISCHER PETER CAMENZULI KYLIE LAMPRECHT BRETT HEADRICK COLE WILKINSON JEREMY JONES JAMES FIELD ROBYN COOPER CHERYL MASON MURRAY GRAHAM MARK NICHOLSON JASON EVANS NORMAN THURECHT WARWICK FACE SIMON CHUN TOM SPLATT DANIEL COLWELL FELICITY CRIMSTON KIERAN WALLIS ANDREW ROBIN

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Condensed consolidated statement of profit or loss

for the half year ended 31 December 2021

		Half year to December	Half year to December
		2021	2020
	Note	$’000	$’000
Revenue
Revenue from contracts with customers	3	999,089	856,145
Other		208	593
		999,297	856,738
Expenses
Changes in inventories of finished goods		2,700	(11,102)
Purchase of goods		(796,381)	(676,193)
Employee and contractor costs directly on-charged		(42,393)	(37,518)
Other cost of sales on services		(57,570)	(41,621)
Other employee and contractor costs		(75,538)	(66,698)
Telecommunications		(1,143)	(1,108)
Rent		(940)	(1,031)
Travel		(67)	(70)
Professional fees		(803)	(401)
Depreciation and amortisation		(2,450)	(2,704)
Finance costs		(736)	(689)
Other		(5,432)	(3,660)
		(980,753)	(842,795)
Profit before income tax		18,544	13,943
Income tax expense		(6,191)	(4,575)
Profit for the half year		12,353	9,368
Profit for the half year is attributable to
Owners of Data#3 Limited		12,353	9,379
Non-controlling interests		-	(11)
		12,353	9,368
Earnings per share for profit attributable to the ordinary equity holders of the company:		Cents	Cents
Basic earnings per share		8.01c	6.09c
Diluted earnings per share		7.98c	6.07c

The accompanying notes form part of these financial statements.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Condensed consolidated statement of other comprehensive income

for the half year ended 31 December 2021

	Half year to December	Half year to December
	2021	2020
	$’000	$’000
Profit for the half year	12,353	9,368
Other comprehensive income (loss) for the half year, net of tax
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations	125	(898)
Total comprehensive income for the half year	12,478	8,470
Profit and comprehensive income is attributable to
Owners of Data#3 Limited	12,478	8,481
Non-controlling interests	-	(11)
	12,478	8,470

The accompanying notes form part of these financial statements.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Condensed consolidated balance sheet

as at 31 December 2021

Condensed consolidated balance sheet as at 31 December 2021
	31 December	30 June
	2021	2021
	$’000	$’000
Current assets
Cash and cash equivalents	64,598	204,323
Trade and other receivables	167,985	415,991
Contract assets	4,611	3,355
Inventories	16,572	13,872
Current tax receivable	2,600	-
Other	3,375	4,018
Total current assets	259,741	641,559
Non-current assets
Trade and other receivables	1,263	2,336
Property and equipment	3,251	3,375
Right-of-use assets	24,874	25,698
Deferred tax assets	5,523	5,898
Intangible assets	17,255	15,959
Total non-current assets	52,166	53,266
Total assets	311,907	694,825
Current liabilities
Trade and other payables	184,575	560,865
Contract liabilities	35,519	39,312
Lease liabilities	2,889	2,761
Current tax liabilities	-	1,327
Provisions	6,801	6,095
Total current liabilities	229,784	610,360
Non-current liabilities
Trade and other payables	631	614
Lease liabilities	23,637	24,105
Provisions	3,275	3,441
Total non-current liabilities	27,543	28,160
Total liabilities	257,327	638,520
Net assets	54,580	56,305
Equity
Contributed equity	10,313	8,278
Share-based payments reserve	250	1,825
Foreign currency translation reserve	(532)	(657)
Retained earnings	44,549	46,859
Total equity	54,580	56,305

The accompanying notes form part of these financial statements.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Condensed consolidated statement of changes in equity

for the half year ended 31 December 2021

		Attributable to owners of Data#3	Attributable to owners of Data#3	Attributable to owners of Data#3	Attributable to owners of Data#3	Limited
	Contributed	Share-	Foreign		Retained	Total	Non-	Total
	equity	based	currency		earnings		controlling	equity
		payment	translation				interests
		reserve	reserve
	$‘000	$‘000	$‘000		$‘000	$‘000	$‘000	$‘000
2021
Balance at 30 June 2021	8,278	1,825	(657)		46,859	56,305	-	56,305
Profit for the half year	-	-		-	12,353	12,353	-	12,353
Other comprehensive income for the
half year, net of tax	-	-	125		-	125	-	125
Total comprehensive income for the half year	-	-	125		12,353	12,478	-	12,478
Transactions with owners in their
capacity as owners:
Payment of dividends	-	-		-	(14,663)	(14,663)	-	(14,663)
Issue of shares under employee share
schemes	2,035	(2,035)		-	-	-	-	-
Employee share schemes – value of
employee services	-	420		-	-	420	-	420
Employee share schemes –
movement in deferred tax	-	40		-	-	40	-	40
	2,035	(1,575)		-	(14,663)	(14,203)	-	(14,203)
Balance at 31 December 2021	10,313	250	(532)		44,549	54,580	-	54,580
2020
Balance at 30 June 2020	8,278	606	202		43,151	52,237	473	52,710
Profit for the half year	-	-		-	9,379	9,379	(11)	9,368
Other comprehensive income for the
half year, net of tax	-	-	(898)		-	(898)	-	(898)
Total comprehensive income for the half year	-	-	(898)		9,379	8,481	(11)	8,470
Transactions with owners in their
capacity as owners:
Payment of dividends	-	-		-	(13,550)	(13,550)	-	(13,550)
Acquisition of non-controlling interest	-	-		-	312	312	(462)	(150)
Employee share schemes – value of
employee services	-	328		-	-	328	-	328
	-	328		-	(13,238)	(12,910)	(462)	(13,372)
Balance at 31 December 2020	8,278	934	(696)		39,292	47,808	-	47,808

The accompanying notes form part of these financial statements.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Condensed consolidated cash flow statement

for the half year ended 31 December 2021

		Half year ended December	Half year ended December
		2021	2020
	Note	$’000	$’000
Cash flows from operating activities
Receipts from customers (inclusive of GST)		1,310,997	1,010,664
Payments to suppliers and employees (inclusive of GST)		(1,403,653)	(1,162,183)
GST paid		(18,714)	(8,009)
Interest received		176	608
Interest and other borrowing costs paid		(715)	(666)
Income taxpaid(net of refunds)		(9,702)	(9,715)
Net cash outflow from operating activities	4	(121,611)	(169,301)
Cash flows from investing activities
Payments for property and equipment		(357)	(1,339)
Payments for software assets		(1,834)	(239)
Payment for acquisition of minorityinterests in subsidiary		-	(150)
Net cash outflow from investing activities		(2,191)	(1,728)
Cash flows from financing activities
Payment of dividends		(14,663)	(13,550)
Proceeds from issue of shares		2,035	-
Payments for shares acquired by the Data#3 Employee Share Trust		(2,035)	-
Repayment ofprincipal on lease liabilities		(1,385)	(1,804)
Net cash outflow from financing activities		(16,048)	(15,354)
Net decrease in cash and cash equivalents held		(139,850)	(186,383)
Cash and cash equivalents at the beginning of the reporting period		204,323	255,147
Effect of exchange rate changes on cash and cash equivalents		125	(881)
Cash and cash equivalents at the end of the reporting period		64,598	67,883

The accompanying notes form part of these financial statements.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Notes to the condensed consolidated financial statements

Note 1. Significant accounting policies

Basis of preparation of interim financial report

We have prepared this general purpose interim financial report for the half-year reporting period ended 31 December 2021 in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report and accordingly should be read in conjunction with our annual report for the year ended 30 June 2021 and any public announcements we have made during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

We adopted AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2 on 1 July 2021. The adoption of this revised accounting standard had no material effect on the consolidated financial statements for the half-year reporting period ended 31 December 2021 or our accounting policies, as interest rates to which we are subject are not tied to benchmark rates. The accounting policies adopted in this interim financial report are the same as those applied in the previous financial year and the corresponding interim reporting period.

Rounding of amounts

The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, relating to the “rounding off” of amounts in the directors’ report and financial report. We have rounded off amounts in the directors’ report and financial report to the nearest thousand dollars, or in certain cases to the nearest dollar, in accordance with that instrument unless otherwise noted.

Note 2. Segment information

Our business is conducted primarily in Australia. Our management team makes financial decisions and allocates resources based on the information it receives from our internal management system. We attribute sales to an operating segment based on the type of solution provided to the customer. Revenue from customers domiciled in Australia comprised 99% of external sales for the half year ended 31 December 2021 (2020: 99%).

The sale of product and services is highly integrated into the IT solutions that each of our business units deliver to its customers. Each business unit services a similar customer base, applies similar methods to distribute those products and services to customers, and operates within a similar economic and regulatory environment. On this basis, we have determined that separate reporting of our business units does not add significantly to the understanding of them because there is significant overlap of product and services within each business unit, and there are frequent changes between the business units, resulting in the business units having characteristics that are so similar that they are expected to have the same future outcome. As a result, we have concluded that the company has only one reportable segment, which is that of value-added IT reseller and IT solutions provider. These solutions typically comprise a combination of infrastructure, software and service elements.

The company’s revenue, results and assets for this reportable segment can be determined by reference to Note 3, the Condensed Consolidated Statement of Profit or Loss, the Condensed Consolidated Statement of Other Comprehensive Income, and the Condensed Consolidated Balance Sheet.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Notes to the condensed consolidated financial statements

Note 3. Revenue

Disaggregation

We derive revenue from the following business units:

Business unit	Half year to December	Half year to December
	2021	2020
	$’000	$’000
Infrastructure Solutions (a)	204,969	202,309
Software Solutions (b)	648,296	537,791
Business Aspect (c)	12,962	7,695
Project Services (d)	32,462	30,115
Support Services (e)	69,163	46,748
People Solutions (f)	29,751	29,440
DiscoveryTechnology (g)	1,486	2,047
Total revenue from contracts with customers	999,089	856,145

(a) Infrastructure Solutions includes sales of hardware, device-as-a-service and managed print services.

(b) Software Solutions includes volume licensing and public cloud subscription services.

(c) Business Aspect provides management and information technology consulting services.

(d) Project Services include the design and implementation of technology solutions.

• (e) Support Services include managed services, outsourcing and maintenance services.

(f) People Solutions includes the provision of contractors and permanent staff recruitment.

(g) Discovery Technology provides wi-fi analytic services and wi-fi infrastructure.

Management exercises judgment in determining the categorisation of revenues as there is an increasing tendency for manufacturers to bundle various elements in the products and services that we resell – for example, some infrastructure offerings include software and/or bundled services, and support offerings can include software licenses.

Timing

We recognise revenue from services over time, and all other external revenue is recognised at a point in time. Services revenue recognised over time comprises less than 10% of our total revenue.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Notes to the condensed consolidated financial statements

Note 4. Cash flow statement information

Reconciliation of net profit to net cash flow from operations

Reconciliation of net profit to net cash flow from operations
	2021	2020
	$’000	$’000
Profit for the half year	12,353	9,368
Depreciation and amortisation	2,888	3,142
Unwinding of discount on provisions	21	23
Bad and doubtful debts	22	6
Excess and obsolete inventory	76	45
Non-cash employee benefits expense – share-based payments	420	328
Loss on disposal of property and equipment	-	20
Other	(19)	(112)
Change in operating assets and liabilities
Decrease in receivables and contract assets	247,820	103,974
(Increase)/decrease in inventories	(2,776)	11,057
Decrease in other operating assets	643	1,017
(Increase)/decrease in net deferred tax assets	415	(561)
Decrease in payables	(376,273)	(278,788)
Decrease in contract liabilities/unearned income	(3,793)	(14,265)
Decrease in other operating liabilities	(1)	(500)
Decrease in current tax liabilities	(3,927)	(4,579)
Increase inprovision for employee benefits	520	524
Net cash outflow from operating activities	(121,611)	(169,301)

Note 5. Dividends

Details of dividends paid during the current period or the previous corresponding period are as follows:

Record date	Payment date	Type	Amount per	Franked amount	Total dividend
			security	per security	$’000
16/09/2020	30/09/2020	Final	8.8 cents	8.8 cents	13,550
17/03/2021	31/03/2021	Interim	5.5 cents	5.5 cents	8,468
16/09/2021	30/09/2021	Final	9.5 cents	9.5 cents	14,663

Dividends not recognised at the end of the half year

Since the end of the half year, the directors have declared an interim dividend of 7.25 cents per fully paid ordinary share, fully franked based on tax paid at 30%. The aggregate amount of the interim dividend to be paid on 31 March 2022 out of retained earnings at the end of the half year, but not recognised as a liability at the end of the half year, is $11,190,000.

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Notes to the condensed consolidated financial statements

Note 6. Share-based payments

On 1 September 2021 ordinary shares were issued to the Data[#] 3 Employee Share Trust (“the share trust”), which in turn provided the shares to executives whose rights vested under the Data[#] 3 Long Term Incentive Plan. Data[#] 3 Limited provided the funds to the share trust to enable the acquisition of shares. The rights were granted on 31 December 2018 and fully vested on 30 June 2021. Other details of the share issuance are set out below.

Number of rights converted to shares 374,325 Share price of shares issued $5.439

The share-based payment equity reserve decreased by $2.1 million (including deferred tax component) in relation to this issuance of shares.

Note 7. Subsequent events

No material and unusual events have occurred after the end of the half year that could affect the financial position and performance of Data[#] 3 Limited or any of its subsidiaries.

Note 8. Contingent liabilities

There have been no material changes in contingent liabilities from those disclosed in the June 2021 annual report.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Directors’ declaration

In the opinion of the directors:

• (a) the financial statements and notes set out on pages 5 to 13 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Australian Accounting Standards and the Corporations Regulations 2001 and other mandatory professional reporting requirements, and

• (ii) giving a true and fair view of the group’s financial position as at 31 December 2021 and of its performance for the half year ended on that date; and

• (b) there are reasonable grounds to believe that Data[#] 3 Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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R A Anderson

Director

Brisbane 17 February 2022

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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Level 38, 345 Queen Street Brisbane, QLD 4000

Postal address GPO Box 1144 Brisbane, QLD 4001

p. +61 7 3222 8444

INDEPENDENT AUDITOR’S REVIEW REPORT

To the Members of Data[#] 3 Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Data#3 Limited (“the Company”) and its controlled entities (“the Group”), which comprises the condensed consolidated balance sheet as at 31 December 2021, the condensed consolidated statement of profit or loss, condensed consolidated statement of other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated cash flow statement for the half-year ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

(a) giving a true and fair view of the Group’s financial position as at 31 December 2021 and of its performance for the half-year ended on that date; and

(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report.

We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Brisbane Sydney Newcastle Melbourne Adelaide Perth

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Pitcher Partners is an association of independent firms.

An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

pitcher.com.au

NIGEL FISCHER PETER CAMENZULI KYLIE LAMPRECHT BRETT HEADRICK COLE WILKINSON JEREMY JONES JAMES FIELD ROBYN COOPER CHERYL MASON MURRAY GRAHAM MARK NICHOLSON JASON EVANS NORMAN THURECHT WARWICK FACE SIMON CHUN TOM SPLATT DANIEL COLWELL FELICITY CRIMSTON KIERAN WALLIS ANDREW ROBIN

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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INDEPENDENT AUDITOR’S REVIEW REPORT, CONTINUED

Responsibility of the Directors for the Financial Report

The directors of the Group are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility for the Review of the Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2021 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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PITCHER PARTNERS

DAN COLWELL Partner

Brisbane, Queensland 17 February 2022

Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

DATA[#] 3 LIMITED INTERIM FINANCIAL REPORT HALF YEAR 31 DECEMBER 2021

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