data

BBY Telecommunications, Media and Technology Conference

John Grant – Managing Director2nd November 2006

Content

• Positioning our business

• Financial performance

• Customer ICT Spend

• Market assumptions in 2007

• Outlook for 2007

Content

• Positioning our business

• Financial performance

• Customer ICT Spend

• Market assumptions in 2007

• Outlook for 2007

Positioning our business Our Customer

2006 Revenue by customer class

2%

6%25%

23%

44%

Fed Govt

State Govt

Local Govt

Enterprise

Medium Business

Positioning our business Technology adoption

Positioning our business Customer ICT investment

Provisioning and management of volume hardware and

software

People resourcing

Enterprise software and hardware

Application and Infrastructure

Services

Strategy Implementation Services

Corporate Strategy Services

Increasing• Margin % • People dependency

Decreasing• % Customer spend• % Contract Revenue• Process dependency• Commoditisation

Data#3

Vendor agnostic

Vendor aligned

SMS

Oakton

SMS

Volume hardware and software supply and management

People resourcing

Enterprise software and hardware

Application and Infrastructure

Services

Strategy Implementation Services

Corporate Strategy Services

Licensing Solutions

ICT Product Solutions

Licensing Solutions

ICT Product Solutions

Recruitment Solutions

Enterprise Solutions

Integration Services

Managed Services

Data#3 areas of specialisation

Positioning our business Areas of specialisation

Volume hardware and software supply and management

People resourcing

Enterprise software and hardware

Application and Infrastructure

Services

Strategy Implementation Services

Corporate Strategy Services

Licensing Solutions

ICT Product Solutions

Software Licensing and Asset Management; ICT

Product Procurement

Contract and Permanent staff; Performance

Management

Infrastructure Optimisation & Virtualisation, Business Continuity, Data Lifecycle

Management

Workforce Productivity Wireless and Mobility

Unified Communications

Security

Data#3 Solution Offerings

Positioning our business Our Solutions

Volume hardware and software supply and management

People resourcing

Enterprise software and hardware

Application and Infrastructure

Services

Strategy Implementation Services

Corporate Strategy Services

Licensing Solutions

ICT Product Solutions

Software Asset Mgt Microsoft + IBM, HP, Toshiba

Perform

IBM

HP

Cisco, VMWare

Cisco Systems

Microsoft

Citrix, NetIQ, Symantec

Data#3 market-leading expertise

Positioning our business Our Expertise

Content

• Positioning our business

• Financial performance

• Customer ICT Spend

• Market assumptions in 2007

• Outlook for 2007

Financial performance - 2006

• 2006 Market buoyant but competitive• Revenues up 22%

• Services up 42%• Product up 17%

• ‘Cross-sell’ index increased by 45%• Gross margins held• Expenses declined as % GM• NPAT of $5.7M exceeded market guidance• Dividend 28 cps fully franked - up 47%• Total shareholder returns of 33%• Strong cashflow; no debt• Staff and customer satisfaction targets achieved

Historical performanceRevenue and profit

Total revenue up 22% to $240 million

Services + 42% Product + 17%

0

50

100

150

200

250

$M

2002 2003 2004 2005 2006

Services revenue

Product revenue

Total revenue

Net profit after tax up 37% to $5.7 million

0

1000

2000

3000

4000

5000

6000

$'000

2002 2003 2004 2005 2006

NPAT

Historical performance Earnings, dividends and share

price

EPS up 35% to 36.9 centsDividend up 47% to 28.0

cents… 76% payout

Share price increased by 23% to 30 June 2006

05

1015

20

2530

35

40

Cents

2002 2003 2004 2005 2006

EPS

DPS

00.5

1

1.5

22.5

3

3.5

4

$

2002 2003 2004 2005 2006

Share price at 30 June

Content

• Positioning our business

• Financial performance

• Customer ICT Spend

• Market assumptions in 2007

• Outlook for 2007

Customer ICT Spend - Analysts

Customer ICT Spend - Analysts

Incremental“Incremental cost control assisted by ‘hottest’ tech trends

e.g. consolidation and virtualisation”

Customer ICT Spend - Analysts

Incremental

“Strong position in ‘blade’ technology helps IBM and HP

move to the top”

“IBM strength in mid-range and HP improving with better

technology and go to market”

Customer ICT Spend - Analysts

Incremental

“Share gainers in (virtualisation) software and security

remain VMWare and Cisco”

Customer ICT Spend - Analysts

Incremental

“Incremental upgrade revenue from corporates should build

starting 2 years after launch ”

Customer ICT Spend - Analysts

Incremental

“The 12 month outlook for corporate network spending

with Cisco looks positive”

Customer ICT Spend - Analysts

0% 10% 20% 30% 40% 50%

Strategic use of IT and business intelligence 38%

Creating new products and services 13%

“..from operational to strategic”

Percentage of responses

Enabling better business processes

42%

Cutting business costs 7%

Gartner’s CIO survey indicates a shift in the role of IS over the next 3 years:

Customer ICT Spend - Customers

Data#3 Customer top priorities remain:

Customer ICT Spend - Customers

Data#3’s Customers are increasing focus on:

“..from operational to strategic”

Customer ICT Spend - Conclusion

• ICT spending growth in range 5% – 7%• Increasing shift to ‘strategic’ spend• Continuing focus on cost control • Strong vendors

• Cisco• IBM• VMWare• HP

• Strong technologies• Business continuity / Disaster Recovery• Virtualisation and consolidation• Security• Mobility

Content

• Positioning our business

• Financial performance

• Customer ICT Spend

• Market assumptions in 2007

• Outlook for 2007

Market assumptions in 2007The economy

• Will remain positive if contracting somewhat

Our customers

• ICT solutions viewed as strategic tools and will maintain a positive view of ICT investment

Our people

• Will be able to recruit and retain the right people and deploy them to deliver revenue growth

Competitors

• Will be able to retain differentiation and maintain or improve current win rates

Our Vendors

• Will drive growth and technology leadership and our partnerships will be maintained or strengthened

Technology

• Will be able to predict the impact of emerging technologies and adapt accordingly

Content

• Key shareholder

information

• Performance in 2005/06

• Market assumptions in 2007

• Strategic Positioning

• Outlook for 2007

Outlook for 2007

…we believe we can improve

financial performance over the

record 2006 result and deliver

dividend yields at the top of the

sector...

Questions and Comments Ord Minnet ICT ConferenceSeptember 2006