Australian Stock Exchange Company Announcements Platform 17 October 2013

UXC Limited

ABN 65 067 682 928

MARKET ANNOUNCEMENT

Investor Presentation

UXC Limited hereby releases the attached presentation to be given by the Managing Director, Mr Cris Nicolli, and the Finance Director & Company Secretary, Mr Mark Hubbard, to the Bank of America Merrill Lynch Emerging Stars Conference today.

For more information please contact: Mr Cris Nicolli

Managing Director UXC Limited (613) 9224 5777

Mr Mark Hubbard Finance Director / Company Secretary UXC Limited (613) 9224 5777

Toll free shareholder information line: 1800 092 092 www.uxc.com.au

ABOUT UXC LIMITED

UXC Limited is an S&P/ASX 300 listed Australian business solutions company, and the largest Australian owned ICT consultancy firm. UXC services medium to large entities in the private and public sectors across Australia and New Zealand. UXC provides a range of unique, unmatched and formidable ICT Solutions in Consulting, Business Applications and Infrastructure that support our customers to plan & design, implement & enhance, and operate & manage their ICT requirements. UXC strives to create simplicity and meaning in a complex world through the power of people and technology, by being the leading Tier 1 Australian IT Services and Solutions Company, delivering value, innovation and responsive business outcomes with excellent people.

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UXC LimitedMerrill Lynch Emerging Stars Conference

Cris Nicolli, Managing DirectorMark Hubbard, Finance Director / Company Secretary

17 October 2013

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Contents• FY13 Highlights

• Vision & Focus

• Competitive Strengths & Differentiators

• Growth Drivers

• Market Conditions

• Summary

20032013

The Leading Alternative to the Multinationals 

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What We Do 

We are an end‐to‐end IT solutions company that is especially good at solving problems, simplifying technology and keeping the people real

We help our customers change and transform their businesses

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Vision & Competitive Position

Our Vision• To create simplicity and meaning in a complex world through the power of

people and technology, by being the leading Tier 1 Australian IT Services andSolutions Company, delivering value, innovation and responsive businessoutcomes with excellent people

Our Focus• We offer a range of unique, formidable and unmatched ICT solutions in

Consulting, Applications and Infrastructure that support our customers to Plan& Design, Implement & Enhance, and Operate & Manage their ICT requirements– we offer more than point services, we also provide end to end solutions

Our Competitive Position• To be recognised as the leading Australian IT service provider and the Number

One alternative to the multinationals in the sector through good customerretention and wins, with outstanding delivery and market leading Applicationsbusinesses driving growth and earnings

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FY13 Highlights – Extending Our Track Record

• Delivered the next phase of strategy execution – this is the first full‐year reportingperiod as a pure play IT Company

• Delivered earnings improvement at all levels compared to previous correspondingperiod:> NPAT from Continuing Ops up 25% from prior year to $22.7m> EPS Attributable to Members up 21% from prior year to 7.8 cps> EPS from Continuing Ops up 24% from prior year to 7.37 cps

• Improved shareholder returns:> 5.75cps total dividend fully franked, up 64%, representing 74% pay‐out ratio

(inclusive of 3.55 cps final dividend, 0.45 cps special dividend and 1.75 cpsinterim dividend).

• Grew revenue by 6% Record result for IT business at $594m• Retained a strong Balance Sheet with no net debt and cash of $34m• Delivered margin improvement in Applications and Infrastructure segments as 

medium term exit rate margin targets were achieved 

A more competitive, consistent and profitable UXC is continuing to evolve

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Capital Management• Final dividend of 3.55 cents per share and Special dividend of 0.45 cents per 

share fully franked – 5.75 cents per share for the year• Improved payout ratios: 

> Special Dividend 0.45 cps ‐100% of EPS from Discontinued Operations;> Interim & Final Dividend 5.30 cps ‐ 72% of EPS from Continuing Operations;> Total dividend 5.75 cps – 74% of EPS Attributable to members

• FY13 $10.142m available franking credits ($9.89m FY12)• Share buy back finalized• Disciplined approach to strategic acquisitions (accretive) around the core 

operating model – Tripoint in July 2012; Stream in September 2012; MEAC October 2012 and Cole Systems America in December 2012

• Improving returns:> Return on Equity 12.5% (11.1% 2012)> Return on Tangible Assets 12% (9% 2012)

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Our record of growth

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FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13Revenue $89m $129m $165m $208m $294m $407m $456m $470m $521m $560m $594mEBITDAC $10.3m $15.6m $19.0m $22.4m $30.7m $36.5m $32.9m $38.3m $37.3m $42.3m $46.5m

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$700mEBITDACRevenue

Revenue & EBITDA before Corporate CostsUXC IT Group – Underlying Earnings

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> Our Current Competitive Position

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CONSULTING AND PROFESSIONAL SOLUTIONS

ENTERPRISE APPLICATIONS

ICT  INFRASTRUCTURE> Who we are

> What we do

> How we do it

> Customers

Design Implement & Enhance Operate & Manage

Health   >   Utilities   >   Government   >   Financial Services   >   Manufacturing   >   Resources   >   Telco   8

UXC ConsultingUXC Professional Solutions

UXC Engineering Solutions

UXC Eclipse (Microsoft Dynamics) UXC Red Rock (Oracle)UXC Oxygen (SAP)UXC Cloud Solutions (NetSuite)

UXC Connect

‐ERP, CRM‐Analytics & Business Intelligence‐ HCM‐ Supply Chain Management ‐Corporate Performance‐Enterprise Content Management‐ Financials 

‐Advisory Research‐ Strategy & Architecture‐Business Transformation

‐Project, Program & PortfolioManagement

‐Business Analysis‐Technical Design‐Communications Consulting‐Training

‐Network Infrastructure‐Unified Communications‐Data Centre Optimisation‐Workspace Virtualisation‐Managed Services & Support

‐Enterprise Mobility‐Contact Centre‐Entertainment & Content‐ IP Video Surveillance‐Outsourcing & Cloud

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LEADING ENTERPRISE APPLICATIONS CAPABILITY 

1300+ Staff 

>  #1 Oracle in Australia and Asia Pacific>  Global Leader in Microsoft –AX Global Partner FY11 >  Top 2in SAP >  Leading  Business Intelligence practice >  Strong Integration, Project and Risk Management 

INNOVATIVE ICT INFRASTRUCTURE OFFERINGS 

650+ Staff 

>  Unified  Communications >  Networking Infrastructure>  Outsourcing>  IP Video Surveillance>  Managed Services

>  Contact Centre>  Workspace Virtualisation>  Cloud Solutions >   Enterprise  Mobility>   Entertainment & Content

DYNAMIC CONSULTING & PROFESSIONAL SOLUTIONS

540+ Staff 

>  Communications >  IT Service Management>  Project & Program Management >  Integration and Testing >  Application Development

>  Business Analysis>   Business Transformation >  Engineering Solutions >  Data Migration>   Business Intelligence

> Our DifferentiatorsUNIQUE BREADTH, DEPTH AND SIZE

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> Our Customer Profile

FY13 Customer Acquisition

• We acquired 22 new million‐dollar customers during the 2013 financial year

• We lost no customers who had spent more than $5 million with us in the previous FY

RevenueNew FY13  Customers 

Total No. Customers 

>$15m 2 6>$5M 1 17>$1M 22 107

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Select Movements from FY12:• IT & Comms up to 12% from 6% • Health Care up to 15% from 9%• State & Federal Government  (ex Health) 

steady at 23%• Energy & Utilities steady at 10%

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Defining and Achieving our Vision

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Success for us will come from achieving andexceeding in each of thesefive areas of our business

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OUR STRATEGIC PILLARS

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Defining and Achieving our VisionWe are building our business and expanding our range and reach of ICT solutions to ensure we deliver and achieve our vision and occupy a pre‐eminent position in the market.  To this end, we are planning and/or currently making investments in:• Building on our Applications market leadership ‐ by following core vendor solutions 

and expanding our capabilities organically and through investments. This includes developing cloud based solutions and capabilities aligned to the key vendors.

• eCommerce – we intend to expand our footprint and accelerate our growth in the digital, eCommerce sector, which will allow us to build capability in assisting customers to manage revenue generation and order management in digital environments.  This capability will enable UXC to provide strong customer value drivers in client acquisition and efficiency integrated as required with ERP systems therefore providing integration and building business innovation.

• Cloud Applications – we have developed expanded relationships with ServiceNow, key cloud based applications in the ERP and IT management space.  Some of these vendors are amongst the fastest growing IT companies globally, and we aim to grow our Cloud practice in support of these vendors as we have done in the Oracle, SAP and Microsoft technologies.

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Defining and Achieving our Vision

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• Annuity Business – Our plan is to increase our annuity business through increasing the managed services of infrastructure and applications, as well as well as providing an expanding range of maintenance and support services. We continue to win new managed services contracts and are being given greater opportunity to provide greater project work as a result of our service reputation and breadth of capability. Much of our new investment in Service Now will align to this segment of our business as will our increased focus on application support and services – beyond our current core application portfolio.

• North America –We have established a strong beach head in the Microsoft Dynamics market in North America, and will make further investment as the growth prospects in this region exceed those available to us domestically.

• Leadership Development – as a services provider, our people are key to the success of our customers and our business. We are making investments to equip our people with tools needed to achieve our objectives, and provide UXC with key retention benefits whilst enhancing our leadership culture.

“We are committed to executing our strategic vision.  We are prioritising opportunities, broadening the scope and reach of our business, and positioning UXC for the future. ”

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Expanding Our Range and ReachEnhancing our position and relevance in the Application space• Building greater capability across new products and solutions (especially “cloud‐

based”) acquired by Oracle, SAP and Microsoft.  Examples:> SAP ‐ Hanna & hybris> Oracle ‐ Prima Vera, Universal Content Management (UCM), Security, Customer 

Relationship Management (CRM)> Microsoft – Dynamics AX, CRM

Reuse of IP in key solutions and delivery capabilities• Rock Solid • DAXEAM• SAP based business ready solutions Increased Industry alignment • We are developing deeper industry expertise within the Utilities, Resources and 

Public Sector for greater penetration into these markets, and attracting key        talent to enable this.

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UXC Cloud Solutions Portfolio Map

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Hosting

Off‐PremisesCloud

Application Infrastructure         Services (PaaS)

Application Services (SaaS)

System Infrastructure        Services (IaaS)UXC Infrastructure Partners

UXC Cloud Services Mobility as a Service IP Telephony as a Service Messaging as a Service Desktop as a Service Backup as a Service Video Conferencing as a Service Virtual Data Centre as a Service

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Acquisition Strategy• Some of our key vision initiatives will be enhanced and fast tracked via 

acquisitions. This will augment and then over time accelerate the rate of organic growth available.  In this regard, our acquisition targets are selected within the following criteria:> Align with the existing UXC business direction and fit strategically > Prioritised to the application focus of our business> Profitable and well run> Fair price that provides accretive earnings value> Increasing the scale and coverage of technology offered as well as developing 

deeper capabilities in existing  areas> Extending the functional and geographic coverage and increasing scale in a 

high growth market.> Leverage existing UXC and acquisition target client base

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Large Contracts Update• Gold Coast University Hospital – in final acceptance, user change requests, and

support agreement on track

• Jean Coutu – being delivered

• Queensland Children’s Hospital – being delivered

• New wins in NSW based regional hospitals

• Hydro Tasmania – Release 1 finalized, Release 2 contracted and in delivery

• Queensland Health prime systems integration panel contract – orders now beingtaken

• Queensland Rail – being delivered

• City West Water – Release 2 planning phase contracted and in delivery

• Large Victorian based Utility – contracted

“We have been satisfied with our success in ensuring revenue continuity in through renewal and replacement of completed works during 1Q14”

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Growth Drivers

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• Revenue Continuity – contract renewals and new wins provide a bridge forproject and phased completions;

• Back‐log (value of contracts yet to be delivered) at 30 September is up 11%from the same time last year – the backlog has been “refilled” during 1Q14 withcontract renewals and new wins;

• Front log improving and more confident that decision making is becomingevident;

• Increased annuity based business wins and retention of base;• New vendor relationships being developed in Applications and cloud‐based

areas;• Customer Referrals – excellent reference ability drives new wins and larger

contracts;• Industry Verticals – should help to create greater customer penetration;• Strategic acquisitions – progressing on several opportunities;• Cost‐base reduction ‐ restructuring already taken during FY14 reducing

headcount by 50 at a cost of $1.8m;• Drive to fulfil vision expected to assist medium term growth in

fluctuating market;• Commitment to further margin improvement and delivery performance.

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Challenges

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• Competitive pricing in commodity based products and services;

• Market sensitivity to macro economic events creates ongoing investment uncertainty;

• Complex project delivery continues to be an operational improvement imperative given some challenging experiences;

• Managing the ever changing skill mix and customer expectation as technology waves increase in pace and disruption;

• Backing the right vendors and judging investment timing relative to vendor priorities and growth plans within our region;

• Continuously investing in clients (sales costs) to capture market spend and to add innovation to creating value to maintain core business. As the projects become bigger and more complex, these costs increase.

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Market Conditions

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• Business sentiment is improving, though translation into sales and earnings isstill expected to lag;

• Encouraging data points are in evidence but are still contradicted too frequentlyto support a trend;

• Business environment remains mixed, often by region and sector, and alternatesbetween signs of recovery and continuing deferral;

• Some pent up demand evident in some areas of our business (i.e.infrastructure) as evidenced by increasing order activity;

• Pressure on rates in commodity resource augmentation areas;

• Trading update will be provided at the UXC AGM on 24 October.

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UXCESSENCE

COMETOGETHER HIGH TECHHIGH TOUCH

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Summary 

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“The key component to our strategy is to be the leading Tier 1 Australian service provider and compete directly as the Number One alternative to the multi‐nationals for large, multi‐year, sophisticated systems integration and managed services contracts.”

Commitment to executing our vision: improving the business, prioritisingopportunities, positioning UXC for the future especially for a market upturn.

• A good FY13 result given the difficult market conditions and performance of thesector;

• Building foundations now to expand and accelerate technology footprint, createand cement new vendor alliances, provide industry specialisation and achievethree year goals;

• Driving differentiation through being local, agile, nimble and customer centric;

• The differentiated APPLICATIONS focus continues to provide strong marketpositioning

• Confident of future – building the leadership capability

• Industry headwinds still evident but hopefully easing.

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UXC Limited Merrill Lynch Emerging Stars Conference

Cris Nicolli, Managing DirectorMark Hubbard, Finance Director / Company Secretary

17 October 2013

Questions?

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