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TRANSCRIPT
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