Slide 1: Analyst Briefing
Analyst Briefing July 2004 Presented By Steve Killelea integrated research
Slide 2: Summary of 2004 Results
Summary of 2004 Results 2004 | 2003 |% Change [Revenue from licence fees 15,842) 12,396} 28% Revenue from maintenance fees B72] 14.456, 5% Total revenue from ordinary activities 30,332) 28,149 8% EBITDA 10,376} 4,705) = 121% Net profit before tax 7,173} 1,265) 467% Net profit after income tax 4455)
Slide 3: Highlights of 2004 Results
Highlights of 2004 Results e PAT $4.5M up by 316% on 2003 ($1.1M) e EPS 2.7 cents per share e Total revenue up by 8% after fx effect (pcp 24%) e Revenue from licence fees up 28% in AUD e Growth in Australia product lines in USD -.NonStop 72% - Windows/Unix.18% - IP Telephony 90% e¢. Growth in all re
Slide 4: Summary of H2 2004 Results
Summary of H2 2004 Results PAT. $2.5M ~ Up by 15%'on Hi 2004 -. Compared to $0.7M loss in.H2:2003 e. Licence Fees - Up by°32% on Hi 2004 - Up by. 84% on H2 2003 Total Revenue --Up by 12% on Hi 2004 ~ Up by-22% on.H2 2003 -. Expenses down by 14% Regional Sales - Americas +.20%.0n H1.2004,:.+-114% on
Slide 5: Large Sales FY04
Large Sales FY04 e Banc One e Euroclear e FSS (India) e Boston Communications e Vodacom (SAF) e Link Interchange e State Street Bank e Navy Federal Credit e Visa California Union e US Bank e Optus e Accenture e Pulse EFT e NHS UK (2) integrated research
Slide 6: Revenue Model
Revenue Model e Upfront Licence Fee ~ Annual maintenance 15-20% - 10-year licence e Annual Rental ~ 4-year break even to licence fee e System based pricing or device based pricing integrated research
Slide 7: Effect of 10-Year Licence Renewals
Effect of 10-Year Licence Renewals New Sales Growth eee ()° = = =-20% 50 t= 45 + FYOS FY06 FY07 FY08 integrated research
Slide 8: Performance management
Performance. management Availability and SLM Root Cause Analysis Automation Event management «.- Heterogeneous environments Windows UNIX Linux HP NonStop (Tandem) ATM/POS PROGNOSIS for Infrastructure Management Niguat zation af cares envonnents Fealsimamsntetiag anc problen deveciion, «Prognosis for
Slide 9: Problems Prognosis solves for our customers
ve problems Prognosis solves for; our customers e Keeps core systems available ~ Improves reliability and predictability e. Warns of impending problems that may impact their business ~ Preemptive problem identification - Improves mean time between failures -— Identifies issues before customers becom
Slide 10: Core Product Strategy
Core Product Strategy e. Maintaining the revenue stream from the HP. Non-Stop (Tandem) products ~- Leverage HP’s. direction « HP-NSK are actively promoting new application environments e HP.are experiencing increased activity in the Telco domain ~ Sustain a close relationship with the HP-NSK divisio
Slide 11: Core Product Strategy
Core Product Strategy eee The widespread adoption of VoIP data networks is inevitable Opportunity Distinctive Competence e¢. IP. Telephony management market is e Proven technology growing at 80% annually e Market awareness e..Most.organizations are planning VoIP e- Trained sales force trials e.. Est
Slide 12: 2004 Revenue Analysis
2004 Revenue Analysis e Revenue Type 100%4 —~ Licence Fees (52%) ° — Maintenance Fees (45%) 90% + -— Other (4%) 80%. e Source ; 70%4 - Recurring (51%) —-- New (49%) 60% 4 e Geography 50%. -. Americas (62%) —.. Europe (19%) 40% —-» Other (19%) 30% 4 e Currency ~~ USD (76%) —.-GBP.(12%) 10%] —.. Other
Slide 13: 2004 Expense Analysis
2004 Expense Analysis e Expense Type — Salaries (70%) =. Other Employee (19%) 100% —. “All Other (11%) 90% e . Activity 80% — Sales and Marketing (59%) —---Research and. Development (26%) -. General and Administration (15%) 80% e.. Geography.and Currency 50% - »Australia (AUD) (61%) —- Americas. (US
Slide 14: Research
Research _ Presented By integrated 4 research