DATA#3 LIMITED — Investor Presentation 2011

Oct 25, 2011

Data#3 (DTL)Strategy updateLicensing Solutions

26thOctober 2011

Introduction

John GrantManaging DirectorData#3 Limited

Laurence BaynhamGroup General Manager Data#3 Limited

• •27 years IT experience (software, hardware and consulting)
• • 17 years Data#3
• •Business Degree, FAICD
• •Established Licensing and Data Centre business
• •Member of Asia Pacific Advisory Boards Cisco & IBM
• • Overall responsibility for revenue/profit and customer satisfaction

Brad Colledge General Manager Licensing Solutions

• •22 years in the IT Industry
• •16 years at Data#³
• •Business Management Degree
• •Started Data#3 Licensing in 1995
• • Microsoft Certified professional in Licensing and Software Asset Management
• • Member Microsoft World Wide Partner Engagement Board
• • Responsible for revenue/profit and customer satisfaction for Licensing Solutions

Well articulated and connected strategy

Data#3 Solution Strategy

Laurence BaynhamGroup General Manager Data#3 Limited

Strong growth forecast in IT spend

'Traditional' product consumption remains the norm8

Technology Consumption Model

ON customer premises
			OFF premises
buy	buy	buy an outcome	contract an outcome	pay per use	pay per use	pay per use
product	expertise	solution	outsource	Private Cloud	Data $*3$ Trusted Cloud	Public Cloud
			choices

Customer choice

Licensing Solutions Overview and Strategy

Brad ColledgeGeneral ManagerLicensing Solutions

Licensing Solutions helps customers...

• • BUY SOFTWARE
• –Through licensing consulting and procurement
• • MANAGE SOFTWARE
• –Through Asset Management
• • USE SOFTWARE
• –Through Workforce Productivity services

Compelling customer value through…

• • Volume licensing solutions for software from global market leaders deployed on-premises, hosted or in the cloud
• •World class asset management services
• •Market leading business productivity services and
• •A proven engagement methodology

Customer choice across the full spectrum

A typical customer engagement

Engage Data#3 strategic consulting to develop the customer's IT strategic plan

Asset Management team conducts audit of the existing environment:

• Procurement policies
• Software installed
• Current Software Licensed
• GAP Analysis

1

2

3

Licensing Consultants

• Agreement review
• Procurement to meet requirements

A typical customer engagement

Engage Data#3 Integrated Solutions to deploy the Software or Data#3 Managed Services to host the software

Engage Workforce Productivity consultants to help end users gain more value out of the software once it is installed

'000s of customers but major focus in mid to large corporate and government

Mid to large corporate

Government

Key market differentiators

• • Experience and focus
• Licensing Solutions is a top level Line of Business within Data#3
• • Certified licensing experts recognised as the best in the industry
• • Specialised world class software and hardware asset management (IP)
• •Unique Workforce Productivity Services (IP)
• • Ability to offer customers choice in technology consumption

Key market differentiators

• •A customised Licensing On Line environment
• •National coverage
• •Scale
• •Comprehensive vendor portfolio
• • Complementary consulting and services through our Integrated Solutions and Managed Services business units
• •Operational efficiency
• •Strong balance sheet and financial stability

Strong partnerships with leading global suppliers

Market leadership recognised by suppliers

2010 – Trend Micro ANZ Partner of the Year

2010/2011 – Sophos Large Account Reseller of the Year Award

2010 – VMware Desktop Competency Partner of the Year Award, Asia Pacific

2011 – VMware ANZ Partner of the Year Award

2011 – Microsoft Desktop Partner of the Year Award

2011 – Microsoft Large Account Reseller Partner of the Year Award

2011 – Microsoft Server Platform of the Year Award

2010 – Symantec Pacific Partner of the Year Award

2010 – McAfee Top Growth Partner of the Year Award

Premier marketing events

• •25 vendors
• •800+ customers
• •Brisbane
• •Adelaide
• •Perth

Track record of strong growth

Licensing Revenue (\$M)

In 2011:

• •Total revenue up 12% to \$356.7M
• •75% under contract
• •5 year CAGR of 34%
• •¹⁶th year of consecutive growth
• •90 people over 6 States
• • On Microsoft's worldwide partner engagement board
• • First sales of Microsoft's public cloud-delivered Office 365 and BPOS
• • First customers for new worker productivity practice

The way forward

• • Investing to expand offerings and capability
• •Licensing in Data#3 trusted cloud and in public cloud
• •Licensing Consultants
• •Consulting and Implementation services
• •New Suppliers
• • Investing to lower costs and improve customer access
• •Supplier automation
• •New customer portal
• •Supplier aligned certifications/marketing programs

The way forward

• • Increasing our market access
• •Via our partners
• •Via 'cross selling' to Data#3 customers
• •Via consulting led engagements
• •Via changes to customer technology consumption e.g. cloud
• • Managing risks
• • Changes to Microsoft reseller program over next 3 years has potential to impact cashflow
• •New competitors offset by strong platform to respond

In summary

• •Solutions relevant to every organisation
• •Loyal and growing customer base
• •Excellent supplier and customer relationships
• • Uniquely positioned to address changes in the ways customers use technology
• •Opportunity to grow associated services strongly
• •Proven financial track record

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.

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 orwarranty, 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.