Technology One Limited · ASX:TNE

Technology One — H1 FY2014 Earnings Presentation

23 slides from Technology One's earnings presentation, May 27, 2014

  1. Slide 1: Half Year Results Presentation ASX cover letter

    Commercial in Confidence For personal use only 27 May 2014 Company Announcements Officer Australian Securities Exchange Limited Exchange Centre, 20 Bridge Street, Sydney NSW 2000 BY ELECTRONIC LODGEMENT TECHNOLOGY ONE LIMITED – HALF YEAR RESULTS PRESENTATION Please find attached a copy of the Execut

  2. Slide 2: 2014 Half Year Results Presentation

    5/27/2014 For personal use only 2014 Half Year Results Presentation Ending March 31st 2014 Adrian Di Marco Adrian_Dimarco@TechnologyOneCorp.com *FINAL May 2014 Commercial in confidence TechnologyOne Half Year Technology One Ltd Half Year Presentation - 27 May 2014 Technology One Ltd (ASX: TNE) today

  3. Slide 3: Results Summary

    5/27/2014 Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year Appendix  Long Term Outlook  Technology One Overview Results Summary FY14 FY13 Variance % Revenue $87.6 m $79.7 m 10% Initial Licence Fees $20.9 m $16.9 m 24% Consulting Fees $23.2m $22.2m 4% Annual

  4. Slide 4: Expenses up 9%

    5/27/2014 Expenses up 9% Variable Operating For personal use only 9.0 $ 67.0m, $ 7.8m, 70.0 Up 7% 8.0 Up 23% 60.0 7.0 6.0 50.0 FY13 FY13 5.0 40.0 #039;m #039;m 4.0 FY14 FY14 30.0 3.0 20.0 2.0 1.0 10.0 0.0 0.0 Variable costs¹ up 23% (vs L/Fees up 24%) Operating costs up 7%  Cloud costs associated with Tec

  5. Slide 5: Balance Sheet

    5/27/2014 Balance Sheet Strong balance sheet For personal use only Mar-14 Mar-13 Var % #039;000 #039;000 #039;000  Cash & Cash Equivalents $54.0m (vs. $50.3m) Cash & Available-for-sale financial assets 53,997 50,251 3,746 7%  Net Cash*: 16.09c/s (vs. 14.00c/s) Trade and other receivables 31,899 22,060 9,83

  6. Slide 6: Results Analysis

    5/27/2014 Results Analysis For personal use only FY14 FY13 Variance Half Year 2014 v Half Year 2013 #039;000 #039;000 #039;000 % Revenue excl interest 86,712 78,869 7,843 10% Expenses (excl R&D, interest, Depn & Amortisation) 53,986 48,588 5,388 11% EBITDAR 32,726 30,281 2,455 8% R&D Expenditure 18,318 17,21

  7. Slide 7: Profit By Segment Analysis

    5/27/2014 Profit By Segment Analysis Investment in new service Evolve customer event called Application Managed Profit Contribution For personal use only $600k $3.8m, Up 37% 4.0 Services (AMS) $3.5m, Down 7% Heads 216, Inline Heads 288, Down 4% $3.4m, Up 41% 3.5 Heads 118, Up 8% FY12 3.0 2.5 FY13 #039;

  8. Slide 8: Revenue Streams: Licence Fees

    5/27/2014 Revenue Streams For personal use only 25 Licence Fees 40 Annual Licence Fees Up 24%, Up 13%, Compound Growth 21% $4m 35 $3.9m 20 Compound Growth 18% 30 15 25 #039;m #039;m 20 10 15 10 5 5 ‐ ‐ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

  9. Slide 9: Revenue Streams: Consulting and Plus

    5/27/2014 Revenue Streams Consulting Up 4%, Plus For personal use only 25 $926k 12 10 20 Compound Growth 15% Compound Growth 5% Down 7%, 8 $520k 15 #039;m #039;m 6 10 4 5 2 ‐ ‐ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Product Consulting

  10. Slide 10: Significant Achievements

    5/27/2014 Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year Appendix  Long Term Outlook  Technology One Overview Significant Achievements Significant Achievements  Evolve User Conference  Ci Anywhere  TechnologyOne Cloud  TechnologyOne’s Journey to the C

  11. Slide 11: Evolve User Conference

    5/27/2014 Evolve User Conference Gold Coast Convention centre For personal use only  1200+ customer attendees  Released Ci² and TechOne Cloud  Simple path forward for our customers • continued evolution of our very successful Ci product to embrace the power of Smart Mobile devices and The Cloud t

  12. Slide 12: Ci Anywhere and TechnologyOne Cloud

    5/27/2014 For personal use only Ci Anywhere Enterprise software, incredibly simple TechnologyOne Cloud Enterprise Software As a Service We take care of everything We build the software and run it for you We own the software and invest millions each year to make it better for the Cloud Allows our cus

  13. Slide 13: New positioning for TechOne Cloud

    5/27/2014 New positioning for TechOne Cloud For personal use only TechnologyOne Cloud Enterprise Software as a Service The future of Enterprise Software, today. We want a single unifying theme going forward ... Cloud first, mobile first world 12

  14. Slide 14: Journey to the Cloud and Sales Transformation

    5/27/2014 TechnologyOne’s Journey to The Cloud TechnologyOne’s Journey to the Cloud ... For personal use only  Email done  Corporate Accounting done  R&D in the Cloud done  Documents & Files in the Cloud done  Demonstrations via the Cloud June 2014  Consulting in the Cloud Dec 2014 Expected co

  15. Slide 15: UK Transformation

    5/27/2014 UK Transformation For personal use only  UK conditions improving post GFC  Added two new customers in the first half  Capitalize on the ‘beach head’ we have in the UK, coupled with Ci Anywhere and TechnologyOne Cloud  New strategy for the UK being developed • Partner with a HRP vendor

  16. Slide 16: Outlook for Full Year

    5/27/2014 Outlook for Full Year For personal use only  Economic environment remains challenging and uncertain  Strong committed annual licence fees in the second half  TechnologyOne enterprise business remains resilient  Good pipeline of opportunities in second half  We expect profit growth of

  17. Slide 17: Appendix I – Long Term Outlook

    5/27/2014 Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year Appendix  Long Term Outlook  Technology One Overview Appendix I – Long Term Outlook Compound Growth 16% 2002 – 2011 Control R&D costs...  Leveraging our new Offshore R&D centre  Economies of scale

  18. Slide 18: R&D Growth Projections

    5/27/2014 R&D Growth Projections Target for R&D growth of 8% per annum compound, over 5 years set in 2011 For personal use only • In 2012 year we demonstrated this was achievable with R&D growth of 5% • In 2013 year we demonstrated this was achievable with R&D growth of 6% • Continues to be a very a

  19. Slide 19: Appendix II - TechnologyOne Overview

    5/27/2014 Appendix II - TechnologyOne Overview For personal use only Formed in Employees Largest R&D centre in Australia: 1000+ Revenue 1987 900 300+ developers corporations, government and statutory authorities $200m+ One of the most successful publicly listed companies Continually Doubles Invest20

  20. Slide 20: TechnologyOne Overview

    5/27/2014 TechnologyOne Overview For personal use only Strong financial track record1…  Doubling in size approx. every 4 yrs (last 15 yrs)  Continually profitable since 1992 (22 years)  Continually paid dividends since 1996 (18 years)  Cash and Equivalents $65.4m  Return on Equity 31%  Adjuste

  21. Slide 21: What Makes Us Unique

    5/27/2014 What Makes Us Unique For personal use only We are one of only a few Enterprise Vendors globally ...  Suite of 12 products  Deeply integrated We believe in the  Common platform freedom of choice our solution is  Consistent user interface modular by design The power of a single, integrat

  22. Slide 22: What Makes Us Unique

    5/27/2014 What Makes Us Unique For personal use only We do not use implementation partners or resellers We take complete responsibility for building, marketing, selling, implementing and supporting our enterprise solution for each customer to guarantee long term success. The Power of One What Makes

  23. Slide 23: For personal use only

    For personal use only 5/27/2014 22

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