Dimension Data – The Transformational Journey Jason Goodall Chief Operating Officer – Dimension Data 2 October 2015 accelerate your ambition
Wholly-owned subsidiary of the NTT Group 1
2015 global 72% of Global Fortune 100 and revenues of 60% of Global Fortune 500 Client centric , USD 7.5 billion… services-focused are Dimension Data clients 32-year track record business Dimension Data today Over 30,000 employees Over with operations in Extensive 6,000 experience in 58 countries emerging enterprise clients across 5 regions markets across all industry sectors 2
FY15 Group Regional Review 45 55 40 60 38 EUROPE 62 ASIA PACIFIC Revenue: USD 2,007m Revenue: USD 1,372m Employees: 5,114 AMERICAS Employees: 5,398 Offices: 80 in 16 countries Revenue: USD 2,176m Offices: 50 in 13 countries Employees: 2,635 Offices: 30 in 5 countries 36 56 64 44 MIDDLE EAST & AFRICA AUSTRALIA Revenue: USD 1,081m Revenue: USD 906m Employees: 7,809 Employees: 2,909 Offices: 43 in 15 countries Offices: 18 in 5 states/territories (additional 8 countries with Plessey presence) Services Technology 3
Strong multi-national account base 4
5
10 000 7000 of data generated 8TB and transmitted devices securely over the network delegates seamlessly supported in two days connected 2 700 concurrent thin client desktop sessions Dimension Data Managed Cloud Platforms 220 300 wireless access points 70KM of cabling 6 112 Dimension Data resource hours personnel deployed
10 000 7000 of data generated 8TB and transmitted devices securely over the network delegates seamlessly supported in two days connected 2 700 concurrent thin client desktop sessions Dimension Data Managed Cloud Client Success Factors Platforms Don’t embarrass Australia 220 Don’t leave any technology behind 300 Don’t waste our taxpayers money wireless access points 70KM of cabling 7 112 Dimension Data resource hours personnel deployed
Growing our Vendor market share #1 #1 #1 #1 #1 #1 (APAC) #1 #1 #1 #1 #2 #1 #1 2 #1 8 8
Dimension Data’s journey with NTT The first 5 years Strategic objectives: 1. 2. 3. Client Employee Growth satisfaction satisfaction 9 9
Revenue 16% 14% 10% 6% 4% 4.7 5.8 5.84 5.85 6.4 7,5 2010 2011 2012 2013 2014 2015 Revenue Constant currency growth 10
Acceleration through M&A (Cloud) (Managed services) (Applications) (Applications) (Consulting) Capability (Security) (TEM) Geographical expansion 11
Voice of the client 12 11 10 8 8 8 6 6 4 2 0 Jun-13 13-Nov 14-May 14-Oct 15-Apr -2 -2 -4 Net Angel Results 12
Employee satisfaction 3.94 3.86 3.84 3.81 3.8 3.77 3.69 3.58 2005 2006 2007 2008 2010 2011 2013 2015 13
Our Transformational Strategy 14
Our Strategy: Client engagement Technology-based services Outcome-based services A full lifecycle of services to deliver business value 15
Our Strategy: Transform to a Level 3 & 4 Services company Supplier operating model Basic Complex Optimise Outcome Level 1 Level 2 Level 3 Level 4 Consulting, managed & Platform ITO services services Technology Technology ITaaS RIM attached attached MSS services services MSEN MSDC EMaaS… Great Great Great technology technology technology Business value Product 1983 1995 2005 2013 focused focused 16 16
Our Strategy: Transform to a Level 3 & 4 Services company Supplier operating model Basic Complex Optimise Outcome Level 1 Level 2 Level 3 Level 4 Consulting, managed & Platform ITO services services Technology Technology ITaaS RIM attached attached MSS services services MSEN MSDC EMaaS… Great Great Great technology technology technology Business value Product 1983 1995 2005 2013 focused focused 17 17
Our Strategy: Long term margin targets Supplier operating model Basic Complex Optimise Outcome Level 1 Level 2 Level 3 Level 4 Consulting, 30%+ managed & Platform ITO services services Technology 35%+* Technology ITaaS 20 – 25% RIM attached attached MSS services services MSEN MSDC EMaaS… Great Great Great 10% technology technology technology Business *at scale value Product 1983 1995 2005 2013 focused focused 18 18
Clients demanding a Global Experience Easy to do Process and systems ̶ Customised to Standardised Business model business with Standalone operations Regionalised operations Integrated operations Standardised operations Standardise / Simplify / Procurement & Logistics Interconnected processes Global systems regional Single platform – Automate & systems instances consistent delivery Dimension Data journey Technology reseller Multi-vendor Geographic expansion ITO Installation & Technology leadership Consulting Cloud services maintenance services In-country focus Advanced services Managed Services Shared services Local Regional Multinational Global Maturing Dimension Data business model 19
How we compete - Our client value proposition Client Services Portal Technology towers Business value On-premise Cloud Maintain Manage Utility-based Operate and and ITaaS and support transform services optimise Hosted Business value One framework Procurement, Architecture and Project and programme Adoption Implementation End-user consumption operations consulting management operations services and integration 20 20
Driving Profitability and Growth 21 21
From FY16 – Need to Drive Profitability 1. 2. 3. Profitable Transformation Improve growth & growth margins 22 22
-1% +4.2% 7.7% -8% +2% +9.8% +8.1% -6.3% +8% +5.7% The Market +16.0% 23 23
Huge Currency Impacting on Financials (20%) (41%) (19%) (8%) (32%) (12%) (13%) 24
Challenges to profitability | Traditional SI operating model Technology Attach services margin pressure Gross profit dilution as a result of: commoditisation reducing volumes vendor competition cloud 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Maintenance Professional and Support Services 25
How we become more profitable – 3 Key Drivers Drive effieciency and effectiveness Leverage opportunity as in Dimension Data business part of NTT Group 1. NTT Group savings leverage 1. Delivery transformation 2. Leasing 2. NTT Group trading leverage 3. Cloud – scale and partnerships 3. Shared services transformation 4. Revenue mix change Foundational 1. Acquistions (higher margin businesses, transformation enabler) 2. People and culture 26 26
Delivery transformation: 3 tier model 1 Client Benefits 3-Tier Delivery model • Typical 30-35% reduction in operational Frankfurt support costs London Autonomic Service management • Significant (circa 60%) reductions in mean time to resolution Singapore Boston Global Service Desk Operations for Support Services CDO • Single Point of Contact for Bangalore first Level Support with >60% FCR rates. Flexibility and quicker Sydney time-to-benefit • Interoperability with Johannesburg Melbourne Santiago existing user environment • Augment with shortfalls New Zealand after office hours. • Intelligent dispatches. 27
2 ITO – A combined NTT Value Proposition. Increased share of deals multi-tower (i.e., ADM plus infra) and centered around "transition and transformation" as opposed to "Take over and optimize” to shift mix to more profitable offerings Increased cross sell to win in Transformational deals used to be ~15% in 2009.. already "transformational at 33% now and increasing trend towards more as deals" customers look to modernize infrastructure and apps together NTT group full stack capability will allow for greater win rates in these deals 28
Group trading leverage | Leverage opportunity as part of NTT Group 3 Strengthen Services/Operations as NTT Group (Cloud/Security etc.) Leverage opportunity as Accelerate and pair with relevant Part of NTT Group services (ITO & security) aiming for market + growth Shift to “one NTT group” 1 Cloud and platform scale procurement model for indirect + $ and direct: • Hardware & Software • Real-estate 2 NTT Group savings leverage • Contractor Use NTT Group’s services internally 3 NTT Group trading leverage Consolidate scale; pricing between retail & wholesale, eliminate margin on margin between Op Cos 29
Drive cloud and platform scale –Global footprint 4 Europe US Asia Atlanta Amsterdam London Indonesia India Hong Kong Ashburn (x2) Tokyo Guernsey Jersey Santa Clara Salt Lake City Australia Sao Paulo Sydney Global scale, local support Johannesburg Melbourne Africa 30
5 Drive cloud and platform scale – Cloud partners one cloud one cloud partners 31
Managed OPEX only video TCV service €49 model and video $50m billion help 190 desk countries Dedicated Service 173 000 NTT offerings First Month - MPLS across people monitored video 60 network countries 3000 video calls Responsible for adoption End-to-end 5 year not SLA contract experience 32
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