Technology One Limited · ASX:TNE
Technology One — Shareholder Meeting (February 2021)
15 slides from Technology One's shareholder meeting presentation, Feb 23, 2021
Slide 1: FY20 Annual General Meeting
For personal use only FY20 Annual General Meeting Edward Chung Chief Executive Feb 2021 - Commercial in confidence 1 Disclosure Statement TechnologyOne Ltd Annual General Meeting – 23 February 2021 Technology One Ltd (ASX: TNE) today conducted its Annual General Meeting at the Brisbane Convention &
Slide 2: Agenda
Agenda For personal use only • Results & Achievements • Outlook for Next Year • Long Term Outlook 3 Underlying Net Profit Before Tax growth of 13% 11 consecutive years of Record Profit 4 2
Slide 3: SaaS continues to drive our growth
For personal use only SaaS continues to drive our growth Outlook for FY21 is strong1 Discussed later in more detail 1 Growth will be based on the FY20 Underlying Profit Before Tax 5 Our SaaS business is growing strongly SaaS ARR is growing at 32% per annum Compelling value proposition of TechnologyO
Slide 4: $200m ARR Runway moving On Prem to SaaS by FY26
$200m ARR Runway moving On Prem to SaaS by FY26 For personal use only 120% $290.0m SaaS customers vs On Premise 100% $240.0m 80% $200+m $190.0m $134.6m SaaS ARR from Up 32% Existing Customers 60% PCP $140.0m $110.2m $101.7m 40% $82.7m $70.4m $90.0m $59.3m $50.7m $35.4m 20% $24.5m $40.0m $14.3m $15.5
Slide 5: Total Annual Recurring Revenues will increase to $500+m by FY26
For personal use only Total Annual Recurring Revenues will increase to $500+m by FY26 1Total ARR in FY20 was $222m 2Date has been extended because of COVID-19 from FY24 9 We continue to double in size every 5 years Underlying Net Profit After Tax up 13% $66.1m 10 YR $58.5m COMPOUND GROWTH $51.0m $44
Slide 6: Profit margin to improve to 35% in the next few years
Profit margin to improve to 35% in the next few years Underlying Profit Before Tax Margin is 29% For personal use only 35% 30% 29% 25% 27% 20% 22% 21% 21% 21% 21% 19% 15% 17% 18% 10% 5% 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Driven by the significant economies of scale from our single
Slide 7: Balance Sheet
Balance Sheet For personal use only Cash and Equivalents Cash & Equivalents $125.2m, up $20m, 19% UP 19%, $20.2m • Net Cash: 39 cps vs 33 cps • Net Assets: $142.2m vs $106.9m, up $35.3m, 33% • We have no debt $82.6m $93.4m $104.3m $105.0m $125.2m 2016 2017 2018 2019 2020 13 FY20 Underlying Profit Co
Slide 8: Customer Churn Years
Customer Churn 10 Years For personal use only ASM Customer Churn 10 Years 4.00% 3.00% 2.00% 1.31% 0.84% 0.82% 1.00% 0.57% 0.57% 0.39% 0.29% 0.18% 0.13% 0.13% 0.00% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 -1.00% 15 Significant investment for future growth R&D investment of $68.1m1, 22% of R
Slide 9: DXP
DXP For personal use only • DXP is our Digital Experience Platform • Delivering specialised functionality for the hundreds of thousands of end users in our vertical markets • DXP 1.0 (employees) now in market Meetings Expenses • DXP 2.0 for ratepayers in development • DXP 2.0 for students early
Slide 10: Consulting Profit of $13.7m, up 38%
Consulting Profit of $13.7m, up 38% Profit margin has improved to 22% in 2020, from 8% in 2017 For personal use only Consulting is responsible for implementation of our software Turnaround driven by: Total Consulting Company Profit Turnaround underway in the UK Profit Up 38%Up 38% $3.8m3.5m APAC Pro
Slide 11: FY20 Full Year Summary
2020 Awards For personal use only 2020 Corporate Philanthropist of the year - Finalist 21 FY20 Full Year Summary Record Record SaaS Is driving our Profit SaaS ARR business growth 13% growth Top of guidance achieved UP 13% Underlying PBT UP 32% SaaS ARR $86.1m $135m 38% ARR to increase to 86% Recurri
Slide 12: Outlook for 2021 Year
Agenda For personal use only • Results & Achievements • Outlook for Next Year • Long Term Outlook 23 Outlook for 2021 Year Continuing strong growth • The enterprise software market continues to be resilient • TechnologyOne key markets remain strong : Local government, higher education, government an
Slide 13: Outlook for 2021 Year
Outlook for 2021 Year Full Year - Strong Profit growth to continue in 2021 For personal use only We expect to see continuing strong growth in SaaS ARR and profit Our momentum remains the same, and we expect to continue to double in size once again in the next 5 years As we have seen in prior y
Slide 14: Drivers for long term growth
Drivers for long term growth For personal use only 14 Licensable products1 6 Vertical markets Diversified geographies2 Over 325 licensable modules International, 6.4% Asset Intensive, 6.2% Asset Spatial, 4% New Zealand, Management, Other, 5.8% 10.9% 12% CPM, 22% Diversified Local Government, 35.6% r
Slide 15: Our People
Our People For personal use only Play video 29 30 15