Technology One Limited · ASX:TNE

Technology One — Investor Presentation (February 2015)

30 slides from Technology One's investor presentation, Feb 24, 2015

  1. Slide 1: 2015 Mid Year Presentation

    24-Feb-15 For personal use only 2015 Mid Year Presentation Feb 2015 Adrian Di Marco Adrian_Dimarco@TechnologyOneCorp.com FINAL 1.0 Feb 2015 Commercial in confidence Disclosure Statement Technology One Ltd Mid Year Presentation - 24 Feb 2015 Technology One Ltd (ASX:TNE) today conducted presentations

  2. Slide 2: 2014 Full Results Recap

    24-Feb-15 Agenda For personal use only  2014 Full Results Recap  Outlook for Full Year  Long Term Outlook  Icon Acquisition  AGM Update  Company Update Appendix  2014 Full Year Results Detail  TechnologyOne Overview 2014 Full Results Recap FY14 FY13 Variance % Profit Profit Before Tax $40.2

  3. Slide 3: Results Highlights

    24-Feb-15 Results Highlights For personal use only  Continuing strong performance  Significant investments have continued as follows  United Kingdom ($800k loss)  TechnologyOne Cloud ($2m loss)  Preconfigured solutions ($3m loss)  R&D, including Ci Anywhere ($38m)  Fully expensed as incurred

  4. Slide 4: Outlook for Full Year

    24-Feb-15 Outlook for Full Year For personal use only Outlook for the full year remains unchanged Outlook for Full Year Economic Environment  The enterprise software markets has been one of the most resilient sectors of the IT industry in recent years  In particular TechnologyOne markets have rema

  5. Slide 5: Full Year - Strong Profit growth to continue in 2015

    24-Feb-15 Outlook for Full Year For personal use only Full Year - Strong Profit growth to continue in 2015  We expect to see strong continuing growth in licence fees, revenue and profit  In the first half of 2014 we saw a number of significant deals close early, resulting in 2014 half 1 Licence up

  6. Slide 6: Long Term Outlook

    24-Feb-15 Agenda For personal use only  2014 Full Results Recap  Outlook for Full Year  Long Term Outlook  Icon Acquisition  AGM Update  Company Update Appendix  2014 Full Year Results Detail  TechnologyOne Overview Long Term Outlook Long Term Outlook remains unchanged 6

  7. Slide 7: Long Term Outlook: Improve Net Profit Margin Before Tax

    24-Feb-15 Long Term Outlook For personal use only Focus is to substantially improve Net Profit Margin Before Tax PBT margins through: 35% 31% 29% 27% 30% 25% 26% 24% 25%  Controlled R&D growth 25% 21% 21% 21% 19% 20% 18% 17% 17% 17%  Product Maturity 15% 10% 5% 0% 2000 2001 2002 2003 2004 2005 200

  8. Slide 8: Product Maturity and Clear Strategy

    24-Feb-15 Product Maturity For personal use only 16.0 Tipping point reached 14.0 Contribute $16+m of additional 12.0 Profit exceeds Licence fees 10.0 profit per year in 5+ years time 8.0 $'m 6.0 4.0 2.0 0.0 (2.0) (4.0) CPM Financials & Supply Student Management Asset Management Enterprise Content HR

  9. Slide 9: Positioned well for the future

    24-Feb-15 Positioned well for the future… For personal use only Cloud first, mobile first world Agenda  2014 Full Results Recap  Outlook for Full Year  Long Term Outlook  Icon Acquisition  AGM Update  Company Update Appendix  2014 Full Year Results Detail  TechnologyOne Overview 9

  10. Slide 10: Acquisitions: ICON Software Solutions

    24-Feb-15 Acquisitions For personal use only ICON Software Solutions  Local Government – Online Planning & Approval  Strengthens our overall solution in Local Government • Strategic high value addition to TechnologyOne OneCouncil solution • Have market presence and credibility  ICON also well pos

  11. Slide 11: AGM Voting

    24-Feb-15 AGM Voting For personal use only Very positive Annual General Meeting FOR AGAINST Re-election of Mr Kevin Blinco 219,894,735 292,128 Re-Election of Mr John Mactaggart 211,489,071 8,689,783 Adoption of remuneration report 100,866,160 32,463,864 Agenda  2014 Full Results Recap  Outlook for

  12. Slide 12: Ci Anywhere and TechnologyOne Cloud

    24-Feb-15 Ci Anywhere For personal use only Enterprise software Any device. Any where. Any time.  Launched at Evolve Feb 2014  Early adopters in progress, positive feedback  Solution showcases in progress  Deliver all products on this platform over next 2 years  Deliver all our enterprise funct

  13. Slide 13: TechnologyOne Cloud and Journey to the Cloud

    24-Feb-15 TechnologyOne Cloud For personal use only  Expect a smooth transition of our business to the Cloud over next 5+ years  Significant benefits for us as we transition our business to the Cloud • Streamline our business, reduce costs • Reduce time to market • Increase innovation and creativi

  14. Slide 14: Other Initiatives and Future Initiatives

    24-Feb-15 Other Initiatives For personal use only  OneSales initiative – in progress • Streamline our operation - Salesforce rollout • Consistent & disciplined sales approach - Sales Methods rollout • Better executive engagement • Upskill our existing Account Managers • Strategic Account Managers f

  15. Slide 15: Results Summary

    24-Feb-15 Agenda For personal use only  2014 Full Results Recap  Outlook for Full Year  Long Term Outlook  Icon Acquisition  AGM Update  Company Update Appendix  2014 Full Year Results Detail  TechnologyOne Overview Results Summary FY14 FY13 Variance % Profit Profit Before Tax $40.2 m $35.1

  16. Slide 16: Results Highlights and Full Year Guidance

    24-Feb-15 Results Highlights For personal use only  Continuing strong performance  Significant investments have continued as follows  United Kingdom ($800k loss)  TechnologyOne Cloud ($2m loss)  Preconfigured solutions ($3m loss)  R&D, including Ci Anywhere ($38m)  Fully expensed as incurred

  17. Slide 17: Dividend and Expenses

    24-Feb-15 Dividend For personal use only Dividends for this year 10.00 Dividend Up 46%  Half 1 1.95 cps up 10% (paid) 8.00 Compound Growth 9% Cents per share  Half 2 4.21 cps up 10% (declared) 6.00 4.00  Sub Total 6.16 cps up 10% 2.00  Special Dividend 2.0 cps (declared) 0.00 2010 2011 2012 2013

  18. Slide 18: Balance Sheet

    24-Feb-15 Balance Sheet For personal use only Strong balance sheet Sep-14 Sep-13 Var % $'000 $'000 $'000  Cash & Cash Equivalents $80.2m (up $14.8m) Cash & cash equivalents 80,209 65,397 14,812 23% Trade and other receivables 30,844 30,509 335 1%  Net Cash*: 24.8c/s (vs.19.5c/s) Earned and unbille

  19. Slide 19: 2014 Full Year Results – Key Metrics

    24-Feb-15 2014 Full Year Results – Key Metrics For personal use only 2014 2013 Variance Full Year 2014 v Full Year 2013 % $'000 $'000 $'000 Revenue excl interest 193,353 179,297 14,056 8% Expenses (excl R&D, Depn & Amortisation) 111,994 104,401 7,593 7% EBITDAR 81,359 74,896 6,463 9% R&D Expenditure

  20. Slide 20: Profit By Segment Analysis

    24-Feb-15 Profit By Segment Analysis For personal use only Net Profit Before Tax $40.2m, up 15% ($5.1m) 16.0 Profit By Segment $13.9m, Up 20% ($2.3m) 14.0 Headcount 287, Down 2% 12.0 Evolve customer event $10.3m, Up 27% ($2.2m) $600k $9.5m, Up 4% ($353k) Headcount 118, Down 1% 10.0 Headcount 215, Do

  21. Slide 21: Revenue Streams

    24-Feb-15 Revenue Streams For personal use only Annual Support Fees Up 16%, Licence Fees Up 11%, 90 45 $4.0m $11.5m 80 40 Compound Growth 19% 70 35 Compound Growth 16% 60 30 50 25 $'m $'m 40 20 30 15 20 10 10 5 ‐ ‐ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011

  22. Slide 22: Licence Fee Contribution - Vertical Market

    24-Feb-15 Licence Fee Contribution - Vertical Market For personal use only Licence Fee Contribution ‐ Vertical Market Managed Services, $2m, 5% Utilities, $2.5m, 6% Education, $9.4m, 23% Local Government, $11m, 26% Financial Services, $5.2m, 12% Health & Community Government, $6.5m, 15% Services, $5

  23. Slide 23: TechnologyOne Overview

    24-Feb-15 Agenda For personal use only  2014 Full Results Recap  Outlook for Full Year  Long Term Outlook  Icon Acquisition  AGM Update  Company Update Appendix  2014 Full Year Results Detail  TechnologyOne Overview TechnologyOne Overview Formed in 300+ Employees developers 1000+ Revenue 198

  24. Slide 24: 1000+ high profile customers

    24-Feb-15 1000+ high profile customers For personal use only TechnologyOne Overview Financially very strong¹ ....  Cash and Equivalents $80.2m  Return on Equity 30+%  Adjusted Return on Equity² 76+%  Debt/Equity 4%  Interest Cover 168  Continually paid dividends since 1996 (19 years)  Continu

  25. Slide 25: The Competitive Landscape

    24-Feb-15 The Competitive Landscape For personal use only New expanding market coverage ORACLE SAP/R3 $1,000m Current market coverage TechnologyOne Microsoft Business Solutions $100m SAP/Business One NetSuite Infor (Sun Systems) $30m Xero Reckon CLIENT TURNOVER MYOB What makes us unique ... We are o

  26. Slide 26: What makes us unique: seven key markets

    24-Feb-15 What makes us unique ... For personal use only We focus on seven key markets...  Deep understanding and engagement in our markets We sell to asset and  Deeply integrated preconfigured solutions service intensive  Proven practice organisations.  Streamlined implementations We do not ser

  27. Slide 27: The power of evolution

    24-Feb-15 What makes us unique ... For personal use only The power of evolution Our enterprise solution adapts and evolves to new technologies Green screen Client server Connected Intelligence Cloud Computing and Smart Mobile Devices 99% of customers have continued with us through this journey ...

  28. Slide 28: Robust Revenue Model

    24-Feb-15 Robust Revenue Model For personal use only Robust Revenue Model ...  Initial Licence - based on usage (number of users ) • Matrix of licensable products & modules (approx 300 modules over 12 products) • Once off fee – invoiced on contract signing  Implementation Services - fee for servic

  29. Slide 29: TechnologyOne Overview

    24-Feb-15 TechnologyOne Overview For personal use only Diversity of revenue streams from multiple: • Products (12) • Vertical markets (7) • Geographies (12) – All states of Australia, New Zealand, South Pacific, Asia and UK Strong, very loyal blue chip customer base • We provide a mission critical s

  30. Slide 30: Historical Performance

    24-Feb-15 Historical Performance For personal use only Key metrics over last 15 years … 120  Revenue - 15% per annum compound 100  Even through the Dot-Com and GFC 80  Initial Licence Fees - 15% per annum compound $'m 60  Annual Licence Fees - 22% per annum compound  Profit After Tax - 13% per

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