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1 Australian Stock Exchange Company Announcements Platform 15 May 2012 MARKET ANNOUNCEMENT Investor Presentation UXC Limited ABN Attached please find a presentation on UXC Limited to be given by Mr Cris Nicolli, Managing Director, at the Goldman Sachs Emerging Companies Conference on 17 May For more information please contact: Mr Cris Nicolli Managing Director UXC Limited (613) Mr Mark Hubbard Finance Director / Company Secretary UXC Limited (613) Toll free shareholder information line: ABOUT UXC LIMITED UXC Limited is an ASX 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 ICT Solutions in Consulting, Business Applications and Infrastructure that support our customers to design, implement & enhance, and operate & manage their ICT requirements. UXC strives to be the leading Australasian IT Services and Solutions Company, delivering value, innovation and responsive business outcomes with excellent people.

2 UXC Limited Goldman Sachs Emerging Companies Conference Cris Nicolli, Managing Director Mark Hubbard, Finance Director / Company Secretary

3 UXC Investment Case UXC building a track record UXC is building a track record clear strategy, competitive strengths and commitment to execution Customer endorsements validate UXC s unique positioning against multinationals Competitive strengths of depth, breadth, and size offering an integrated model, large scale and high service level offering Proven ability to win large customer tenders and new contracts Clean, de leveraged balance sheet Highest commitment to margin improvement Management team committed to sharpening the company s focus with a view to generating improved shareholder returns Committed to delivering sustainable profit growth, improvements in EPS and free cash flow UXC building a track record 2

4 UXC IT Company Vision To be the leading Australasian IT Services and Solutions company delivering value, innovation and responsive business outcomes with excellent people We are: Unique in our scale, through the depth and breadth of our capability coupled with local management Unrelenting in creating a reputation and reality that is customer centric and value adding, through the quality of our service and character of our staff The number one alternative to multi nationals in our market space A safe, pragmatic go to organisation Agile and easy to do business with Leveraging our preferred vendor partner relationships for our customers Focussed on attracting and retaining the best and most talented employees in our industry Inspired to create and deliver sustained stakeholder value and shareholder returns 3

5 Our Differentiators UNIQUE BREADTH, DEPTH AND SIZE LEADING ENTERPRISE APPLICATIONS CAPABILITY 800 Staff > #1 Oracle in Australia and AP > Global Leader in Microsoft AX Global Partner FY10 > Top 3 in SAP > Strong Business Intelligence capability > Strong Integration, Project and Risk Management INNOVATIVE ICT INFRASTRUCTURE OFFERINGS 850 Staff DYNAMIC CONSULTING & PROFESSIONAL SOLUTIONS 300 Staff > Managed Services > Unified Communications > Networking > Telecommunications > IT Process Improvement > Project Management > Systems Integration and Testing > Contact Centres > Storage Management > Cloud Services > Capability Development and Training > Transformation > Engineering Solutions > Cloud Services 4

6 Customer Endorsements (recent wins)

7 Breadth and Depth of Customers Transportation 3% Resources 7% FY12 Education 2% Key Client Concentration: Contribution to revenue from customers spending $1m or more: FY12 65% FY11 63% Energy & Utilities 11% IT & Comms 7% Financial 7% Capital Goods & Commercial Services 13% Government 30% Consumer Goods & Services 20% Select Movements from FY11: Energy & Utilities up to 11% from 7% Capital Goods up to 13% from 10% Resources up to 7% from 6% Government down to 30% from 34%

8 Gartner Rankings UXC is #2 Market Share Company CY2010 % 1 IBM 9.1% 2 UXC 7.0% 3 Accenture 5.9% 4 KPMG 5.2% 5 Ernst & Young 4.4% 6 CSC 4.4% 7 Deloitte 4.1% 8 PricewaterhouseCoopers 4.0% 9 SMS 3.0% 10 Oakton 2.6% 11 Salmat 2.2% 12 Dimension Data 1.3% 13 HP 1.3% 14 Mincom 1.2% 15 SAP 1.1% 16 Unisys 0.9% 17 McKinsey & Co. 0.9% 18 CPT Global 0.8% 19 DWS 0.7% Other Providers 39.7% Software Support Market Share Name CY2010 % 1 HP 13.0% 2 Oracle 4.4% 3 Salmat 3.6% 4 IBM 3.2% 5 Microsoft 2.6% 6 Symantec 2.3% 7 CSC 2.2% 8 UXC 2.2% 9 SAP 2.1% 10 Sage 1.8% 11 CA Technologies 1.8% 12 Cisco 1.7% 13 Datacom 1.3% 14 Mahindra Satyam 1.2% 15 Accenture 1.1% 16 Fujitsu 0.9% 17 TCS 0.9% 18 Unisys 0.9% 19 Parametric Technology 0.9% Other Providers 51.9% Source: Gartner IT Services Asia/Pacific Market Share, May

9 1H FY12 Highlights Excellent progress on strategy execution and transformation plan post sale of Field Solutions, UXC is now a pure play IT company NPAT from Continuing Operations up 198% to $4.8m Earnings per share from Continuing Operations up 198% to 1.55 cents Revenue from Continuing Operations up 6% to $256m Net Debt down 97% to $1.6 million from $56.2m Interim Dividend of 1 cent per share fully franked Commenced Board Refresh Improved reporting segments visibility The New UXC is a stronger, leaner, more competitive and fully focussed IT Leader 8

10 Track Record of Revenue Growth 9

11 4 Phases of Transformation Plan Setup and execution Q4 FY 2011 Set up the structure, systems and processes to enable start up of restructured businesses Transformation Q1 / Q2 FY 2012 Divest non IT businesses, Launch restructured businesses, Establish Go to Market models, Communicate business plans, Reduce debt Refine &Grow Q2 / Q3 FY 2012 Grow order pipeline, fine tune systems and processes to ensure success Refine costs and drive synergies, secure revenue growth Run Q3 / Q4 FY 2012 Convert pipeline to revenue, take cost out, continuously improve productivity and grow profit contribution, gain benefits, improve margins The New UXC is a stronger, leaner, more competitive and fully focussed IT Leader 10

12 Operational Highlights Disciplined Execution of Strategy Q1/Q2 Transformation FSG Divestment > Exited FSG in one transaction for $61m inclusive of earn out Allowed net debt reduction of 97% to $1.6m > Cleared all outstanding claims > Vendor loan of $5.75m due before year end > Earn out not yet brought to account but prospective Transformation and Simplification > Created UXC Consulting by merging six consulting brands > Created new UXC Connect by merging three infrastructure brands > Improves go to market and supports sales strategy > Incurred $1.3m in 1H12 transformation costs ($550k Consulting, $750k Infrastructure) > Expect some $0.5m in 2H12 transformation costs (excluding redundancies) 11

13 Operational Highlights Disciplined Execution of Strategy Q2/Q3 Refine & Grow Significant Customer Wins > Large wins now in delivery phase City West Water Fosters Hills Industries Holcim > Additional wins not yet announced Utilities State Government Manufacturing Toyota Commencing / have commenced in the second half 12

14 Operational Highlights Disciplined Execution of Strategy Q3/Q4 Run Cost and Margins > Company wide cost reduction and efficiency improvement program underway > People and cost cutting measures in place and completed Jan / Feb Labour cost improvements of $10 million achieved > Further efficiencies / synergies ongoing > Expect some $1m of redundancy costs in 2H12 Improved Competitive Position > Major wins proof points of strategy achievement in being seen as the number one alternative to the multi nationals > Strong revenue increase in first half service and annuity revenue > Back log (value of contracts yet to be delivered) is up 14% from 30 June 2011 > Front log (value of the sales pipeline) is up 10% from 30 June 2011 > Front log and back log in our Oracle, SAP and Microsoft practices is especially strong 13

15 Medium Term Margin Goals by Business Business 1H FY12 Revenue ($m) 1H FY12 PBT ($m) Typical engagement (type of work/ length of contract) Typical customer type PBT Margins 1HFY12 vs Medium Term target UXC Opportunity Consulting $42m $2.7m T&M 3 12 months Applications $116m $10.4m T&M, project 6 mths multi year Infrastructure $98m $1.9m T&M, SLA, annuity 6 mths multi year Finance, Telco, Resources Resources, Manufacturing Utilities Health, Government, Utilities, Resources 6.5% to 12% Margin Improvement, utilisation and scale 9% to 11% Dominant player, greatest depth, larger projects 2% to 5% Increasing size of contracts, leverage of scale, increased productivity 14

16 Margin & Growth Drivers Continue to be the # 1 in Applications segment especially Red Rock with Oracle, Eclipse with Microsoft and Oxygen with SAP Oracle and SAP based businesses Red Rock and Oxygen leading growth and larger client wins Continued drive for services revenue and multi year contracts Significant investment and cost in large scale multi year contract and panel renewals should be rewarded but some are lagging Drive to increase utilisation and improvement of Gross Margin including new delivery models Reduction in cost base through standard systems and increased efficiency Selected acquisitions in core areas Expand further in WA and QLD Revenue growth is being achieved despite large internal transformation program 15

17 IT Market Overview Subdued growth, but still positive Opportunity for an alternative to the multi nationals New business drivers and technology evident, including: > ERP (driving client growth, consolidation, supply chain and efficiency) > Mobility (mobile apps, security, management) > Data (Big Data SAP, Oracle) > Capex and cost reductions (Cloud impacts SaaS, PaaS, IaaS) > Security > IT spend shift to business from IT departments > Business relationship, simplification and Trust 16

18 Commitments to our Investors Committed to delivering sustainable profitable growth in EPS and free cash flow Respected by the investor community Prudent management of the business Transparency, governance and Board Refresh Utmost commitment to margin improvement Selected acquisitions to build on strategic positioning in targeted market segments Conservative balance sheet Increased communication with investors Increase core institutional investors to 30%+ of book 17

19 Board Refresh Process Started with new non executive director appointment Gail Pemberton (Nov 11) Announced pending retirement of Ron Zammit (May 12) Announced Geoff Lord to step down from position of Chairman of UXC (May 12) > Appointment of new Chair by next AGM (est Oct 12) > Ron Zammit s retirement effective next AGM Formal search initiated for new director(s) as part of broader refresh (Apr 12) 18

20 Outlook Simplifying the business is driving earnings growth Robust back log and positive pipeline New technologies are creating more opportunities Key growth areas include ERP solutions, secure mobility, managed services, analytics, Cloud services, customer focus Major focus on operational improvements should provide upside in late FY12 lag effect and impact on staff will push out some transformation cost benefits Implementing UXC wide resource management and performance management system and new front end for managed services Service Now Sales engagement continues to improve FY12 second half shows encouraging profit growth, expected to be an improvement on PCP Net cash position expected at year end Confident in a strong FY13 19

21 Conclusions UXC is building a track record clear strategy, competitive strengths and commitment to execution FY12 significant turning point for UXC Field Solutions sold, debt reduced, balance sheet strengthened Pure IT company transformed simplification substantially done Built the largest, Australasian Pure IT Services and SI Company with a strong strategic position and an emerging track record Robust pipeline of business encouraging start to FY12 second half, some lags in cost savings and patches of market softness Won new large clients many over multi years Opportunity for improved margins, 2HFY12 showing some evidence of this Commitment to consistently increase earnings and free cash flow We are building the business for a sustainable future 20