Integrated Research Limited · ASX:IRI
Integrated Research — Bell Potter Small Cap Conference 2006
23 slides from Integrated Research's conference presentation, Nov 28, 2006
Slide 1: Bell Potter Small Cap Conference
by integrated Research Integrated Research Limited ABN: 76 003 588 449 Bell Potter Small Cap Conference 28 November 2006 Presentation by: Stephen Rorie — Chief Financial Officer Performance monitoring software for business-critical systems
Slide 2: Company Profile
CompanyProfile = | « Specialises in the development, sales and marketing of software IR was formed in 1988 and listed on the ASX in 2000 * PROGNOSIS is a broad suite of performance monitoring and diagnostics software « PROGNOSIS is used by many of the world’s largest companies to manage critical tec
Slide 3: Customers, offices and staff
* IR has customers in over 50 countries including banks, stock exchanges, credit card companies, airlines and universities ° Approximately 95% of income earned in a foreign currency * PROGNOSIS is sold and supported through IR offices in US, UK and Germany as well as resellers and managed service pr
Slide 4: How We Earn our Revenue
HowWeEarnourRevenue _. License fees by platform » Revenue: (in AUD$ millions) ud Recurring (maintenance) revenue — 45% <] New license revenue — 55% IP Telephony ° 98% retention rate Windows/ UNIX/Linux PRO ais
Slide 5: Where We Earn our Revenue: FY 2003-2006
"Where We Earn our Revenue: FY 2003-2006 __ Americas — US$ millions UK/Europe — GBP millions Asia Pacific - US$ millions 3.0 9.0 25 ® < S$ USS million 2003 2004 «= 2005 = 2006 2003 2004 = 2005-2006 Year 2003 2004 = 2005 2006 Year Year PROGNOSIS ee
Slide 6: 10-year revenue history
10-year revenue history — US$ millions 30 25 OD Other Revenue 20 ™ Licence Fees @ Maintenance 10 Revenue - US$ millions a a al 1997 1998 1999 2000 2001 Year 2002 2003 2004 2005 2006 FY2003 affected by lraq war PROGNOSI
Slide 7: FY 2006 performance
"FY 2006 performance "30 June 2005 | %: -AUD$000's. Licence fees 19,040 17,790 7% Maintenance fees 14,909 14,877 0% Other 574 446 29% [Totalrevenue = (asisd| si BS R&D expenses 6,687 6,241 7% Sales and marketing 16,452 15,431 7% General and admin 3,782 3,494 8% Totalexpenses = | HPT PBT 7,967 8,241
Slide 8: R&D spending
“| ReDepnding Gross spending 7,348 7,747 -5.2% Capitalised 4,657 4,113 13.2% Amortised 3,996 2,607 53.3% % of revenue 19% 19% Prior period comparatives restated for AIFRS
Slide 9: Other key metrics
Other key metrics Basic EPS (cents) 4.22 3.77 12% Dividend per share — 2.5 2.5 0% unfranked (cents) Net Cashflow from Operations 5,085 5,439 -7% (AUD$000’s) Capex (AUD$000’s) 506 671 -25% *Company entered into new lease for North Sydney office. Minimal profit and loss impact PRO ais
Slide 10: Balance sheet
-Balancesheet —T Key balance sheet items Cash Receivables 13,615 10,079 Net R&D 9,567 8,885 Deferred Revenue 10,163 9,007 Net assets 23,288 19,958 Prior period comparatives restated for AIFRS | Pacormaace monlonng
Slide 11: Quality of customer base
Quality of customer base Demonstrated customer retention rate Recurring revenue base Strong balance sheet Scalability of business Simple set of accounts
Slide 12: Voice over Internet Protocol (VoIP)
by integrated Research Voice over Internet Protocol (VoIP) Presentation by: Nathan Brumby — General Manager IP Telephony Business Performance monitoring software for business-critical systems
Slide 13: Background - IPT
"Background - IPT Integrated Research entered the IP Telephony Performance and Monitoring Market in 2000 IP Telephony has had two false starts attributed to Y2K and the dotcom crash IP Telephony is the transference of voice over the internet Enterprises will adopt IP Telephony as traditional phone s
Slide 14: Rollouts are more evolutionary
« Rollouts are more evolutionary * Departure from early predictions * Global enterprises planning for 5- to 7-year projects « Now in pilot and growing rollout phases * Tend to have the most locations « Require sophisticated management tools *« Management tool purchase occurs 12-18 months after rollo
Slide 15: IP Telephony Management - The Players
IP Telephony Management -The Players _ & Vendor Specific Products ° Cisco ¢ Nortel « AVAYA s AttachMate / NetlQ ¢ Fluke Networks € InfoVista AR 1k 7 Z J : ‘ ie We We Wie 1) ROO URAATE NEON ONING Sow Are Tor DusInGes Orica ysierie 277/77:
Slide 16: PROGNOSIS Product Suite
PROGNOSIS Product Suite “PROGNOSIS IP Telephony Assessor *Pre-deployment testing/network assessment *Post-deployment capacity planning ePROGNOSIS IP Telephony Manager *Monitoring, management, troubleshooting and reporting for Cisco CallManager environments *Manages all functional aspects of IP telep
Slide 17: PROGNOSIS IPCC Management Reporting
« PROGNOSIS IPCC Management Reporting ¢ Customized reporting for Cisco IP Contact Centres « PROGNOSIS Management Reporter * Highly Flexible Executive Level Management reporting for IP Telephony Environment « PROGNOSIS IP Telephony Smart Link Integration for HP OpenView * Integrates PROGNOSIS metrics
Slide 18: Customer logos
Abercrombie & Fitch CarrAmerica. Cacvua, Luxury America’s Morkplaces JPMorganChase BANK=ONE. ar | FER | BRITISH AIRWAYS ~ BYU BRIGHAM you NG Deutechtands gritte Krankenkasse ae : MALLESONS STEPHEN JAQUES (Where vision gets built" ROGNOSIS
Slide 19: PROGNOSIS business partners
PROGNOSIS business partners Used by leading IP telephony resellers, MSPs and system integrators =a nexhraOne® 2) REGIS) / ra ” 4 7 , one ’ La " #jaiphawest so oe P lok — a a &. Applying Thaught france telecom PROGNOSIS’
Slide 20: VoIP growth profile
“VoIP growth profile Revenue $ Market evolving, still early in life cycle: A * Adoption by new enterprises increasing - « Deployments slower than expected ~- (between 10 — 20% deployed) * More activity from systems integrators, carriers, and industry analysts than 12 months ago New licences for a ad
Slide 21: Growth strategy - VoIP
_ Growth strategy - VoIP « Expand our own sales capability « Direct focus on large enterprises « Business development coverage of managed service providers (MSPs) and systems integrators (SIs) « Partners to extend reach to mid market « Expand our product capability « Enhanced management reporting «
Slide 22: Leader in Yankee's management quadrant
Leader in Yankee’s management quadrant _ Enterprise IP Telephony Management Is Becoming More Solution-Focused Source: Yankee Group, 2005 High One-Uppers Authorities Psytechnics Concord (CA) Viola Networks Micromuse Telchemy _ on Spirent gy py age Empirix gy Clarus Market |Qovia ISI, Avotis InfoVista
Slide 23: Independent source: Nemertes Research
i Independent source: Nemertes Research f (from Australian visit on November 2) Averac r of Management tool Employees # of Employees Using VOIP Prognosis 155,242 12,883 Infovista 95,000 12,000 _ | Netla 58,500 7,500 Openview 52,644 3,162 _ | Concord 50,775 6,473 Smarts 46,433 5,054 None 30,300 555 I
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