Objective Corporation Limited · ASX:OCL
Objective — Morgans Emerging Companies Conference (April 2014)
27 slides from Objective's conference presentation, Apr 2, 2014
Slide 1: Objective Corporation Limited
For personal use only OBJECTIVE CORPORATION LIMITED ASX: OCL 1
Slide 2: Disclaimer
For personal use only DISCLAIMER This document is provided to recipients for information purposes only. This document has not been filed, lodged, registered or approved in any jurisdiction and recipients should keep themselves informed of, comply with and observe all applicable legal and regulatory
Slide 3: Investor Update April 2014
For personal use only TONY WALLS CEO AND FOUNDER INVESTOR UPDATE APRIL 2014 TONY.WALLS@OBJECTIVE.COM 3
Slide 4: Agenda: Introduction
For personal use only AGENDA INTRODUCTION THE GROWTH OPPORTUNITY FINANCIALS WHY OBJECTIVE 4
Slide 5: Agenda: The Growth Opportunity
For personal use only AGENDA INTRODUCTION THE GROWTH OPPORTUNITY FINANCIALS WHY OBJECTIVE 5
Slide 6: Who We Serve
For personal use only WHO WE SERVE AGS Australian Department of Defence Advantage West Midlands Taupo District Council Delta Electricity Queensland Police Scottish Government Scottish National Heritage Places for People Australian Government Solicitor Hobsons Bay Regional Council Powerlink Adur Dist
Slide 7: Objective Today
! For personal use only OBJECTIVE TODAY 50 22 $50m 20.7 Annual R&D Cumulative R&D 19.3 19.4 40 42 41 17.9 37.5 40 40 16.5 37 $37.5m 34 34 Value Axis 31 14.2 25 27 11 11.6 $25m 46.2 10.3 8.1 37.1 15 27.8 $12.5m 12.5 5.5 13 18.4 8 8.8 8.8 9.6 9.3 9.1 9.4 $0m FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY0
Slide 8: Objective Customer Community
For personal use only OBJECTIVE CUSTOMER COMMUNITY 0.7 61% 58% 0.525 51% 0.35 22% 0.175 20% 17% 18% 16% 13% 10% 3% 1% 0% 6% 4% Very Dissatisfied Dissatisfied Neutral Satisfied Very Satisfied > 50% CUSTOMERS IN THE CLOUD EXCELLENT CUSTOMER RELATIONSHIPS LONG TERM CUSTOMER VALUE Acquired and developed
Slide 9: Agenda: The Growth Opportunity
For personal use only AGENDA INTRODUCTION THE GROWTH OPPORTUNITY FINANCIALS WHY OBJECTIVE 9
Slide 10: Growth Opportunity: Leverage Long Term Value of Customer
For personal use only GROWTH OPPORTUNITY LEVERAGE LONG TERM VALUE OF CUSTOMER $1,600,000 £CUSTOMER ACQUISITION RATE Increase customer acquisition rate with $1,440,000 CUMULATIVE new solutions and go-to-market LONG / TERM strategies while focused on leading to $1,280,000 VALUE OF/TO highest long ter
Slide 11: Growth Opportunity: Long Term Value to Customer
For personal use only GROWTH OPPORTUNITY LONG TERM VALUE TO CUSTOMER VALUE BASED SERVICES PORTFOLIO Substantial ongoing focus on ensuring we are focused on Customer’s return on Investment not just Objective’s. LONG TERM SOLUTION VALUE Organisational alignment ensured through integration of customer
Slide 12: Growth Opportunity: Expanded Solution Portfolio
For personal use only GROWTH OPPORTUNITY EXPANDED SOLUTION PORTFOLIO OBJECTIVE CONNECT 8000+ Users in 18 Months OBJECTIVE 160,000+ Connections CONNECT 99% Business Use OBJECTIVE ECC 6000+ Authors Globally ENTERPRISE 20,000+ Policy Documents CONTENT 33% Reduction in Policy Development Cost CREATION O
Slide 13: Solution Portfolio: Objective Enterprise Content Management
OBJECTIVE CONNECT ENTERPRISE CONTENT CREATION OBJECTIVE GOVERNANCE FOR SHAREPOINT ENTERPRISE CONTENT MANAGEMENT For personal use only SOLUTION PORTFOLIO OBJECTIVE ENTERPRISE CONTENT MANAGEMENT FINANCIAL ENGINE ROOM Objective ECM has been the financial engine room of the company, and will continue to
Slide 14: Solution Portfolio: Objective Connect
OBJECTIVE CONNECT ENTERPRISE CONTENT CREATION OBJECTIVE GOVERNANCE FOR SHAREPOINT ENTERPRISE CONTENT MANAGEMENT For personal use only SOLUTION PORTFOLIO OBJECTIVE CONNECT 8000 180000 STEADY CUSTOMER ACQUISITION RATE 7,484 7500 Users Connections Objective Connect is gaining new 7000 7,019 customer fo
Slide 15: Solution Portfolio: Objective Enterprise Content Creation
OBJECTIVE CONNECT ENTERPRISE CONTENT CREATION OBJECTIVE GOVERNANCE FOR SHAREPOINT ENTERPRISE CONTENT MANAGEMENT For personal use only SOLUTION PORTFOLIO OBJECTIVE ENTERPRISE CONTENT CREATION $1,600,000 FIRST CLOUD APPLICATION The 2009 acquisition of a Cloud based $1,440,000 software house provided a
Slide 16: Solution Portfolio: Objective Governance for SharePoint
ePoint S!ck with Shar system ex is!ng ECM/DM Retrench to an oint on-premise 40% 50% w non-ShareP M/DM system 30% Implement a ne 20% OBJECTIVE EC 0% 10 % CONNECT ontent- w Cl ou d- ba sed ECM/DM/c system ENTERPRISE Implement a ne sharin g CONTENT CREATION usefulness r! se to maximize its pe file shar
Slide 17: Expanded Go-To-Market Model
For personal use only GROWTH OPPORTUNITY EXPANDED GO-TO-MARKET MODEL $1,600,000 ENTERPRISE SOLUTIONS $1,440,000 • Global Approach • Direct Market and Customer Engagement $1,280,000 • Complete Solution Portfolio • Recurrent Revenue Protection and Growth $1,120,000 $960,000 Value Axis $800,000 $640,00
Slide 18: Agenda: Financials
For personal use only AGENDA INTRODUCTION THE GROWTH OPPORTUNITY FINANCIALS WHY OBJECTIVE 18
Slide 19: Key Financials
For personal use only KEY FINANCIALS FY14 H1 FY14 H1 FY13 H1 CHANGE REVENUE $21.7m $19.0m 14% Strong Revenue Growth for H1 NPAT $2.1m $0.8m 156% APAC REVENUE $17.9m $15.7m 14% Excellent European Results EUROPEAN REVENUE $3.4m $2.8m 20% Substantial EBITDA Improvement EARNINGS PER SHARE 2.1cps 0.8cps
Slide 20: Balance Sheet
For personal use only BALANCE SHEET AS AT 31 DEC 2013 31 DEC 2013 30 JUN 2013 $’000 $’000 CASH AND EQUIVALENTS 13,542 18,000 RECIEVABLES 4,024 5,914 OTHER 2,852 2,041 CURRENT TAX RECEIVABLES 202 - TOTAL CURRENT ASSETS 20,620 25,955 PROPERTY, PLANT AND EQUIPMENT 848 851 $4.5m FY14 H1 DEFERRED TAX ASS
Slide 21: Underlying Historical Price / Earnings Ratio
For personal use only UNDERLYING HISTORICAL PRICE / EARNINGS RATIO FY13 H2 NPAT $3.0m FY14 H1 NPAT $2.1m TRAILING NPAT $5.1m SHARES ON ISSUE (POST BUYBACK) $88.2m MARKET CAP @ $0.80 $70.6m UNDERLYING TRAILING P/E 13.8x 21
Slide 22: Comparison by Market Comparables
For personal use only COMPARISON BY MARKET COMPARABLES MARKET EV/! P/E DIV YIELD CAP SALES ACTUAL ACTUAL TECHNOLOGY ONE 739 3.9x 29.7 2.1% ALTIUM 271 3.7x 60.1 4.1% INTEGRATED RESEARCH 192 3.7x 21.5 3.9% GBST HOLDINGS 214 2.7x 19.1 1.8% IRESS! 1,468 5.8x 28.1 3.7% ! OBJECTIVE CORP* 71 1.6x 13.8 4.0%
Slide 23: Financial Trends
For personal use only FINANCIAL TRENDS $1,600,000 50 $1,440,000 FY14 H1 FY13 H1 CHANGE $1,280,000 42 REVENUE $21.7m $19.0m 14% 40 40 40 41 $1,120,000 37.5 37 NPAT $2.1m $0.8m 156% Value Axis $960,000 34 34 31 $800,000 APAC REVENUE $17.9m $15.7m 14% 25 27 $640,000 EUROPEAN REVENUE $3.4m $2.8m 20% $48
Slide 24: Agenda: Why Objective
For personal use only AGENDA INTRODUCTION THE GROWTH OPPORTUNITY FINANCIALS WHY OBJECTIVE 24
Slide 25: Why Objective: The Investment Opportunity
For personal use only WHY OBJECTIVE THE INVESTMENT OPPORTUNITY OBJECTIVE CONNECT 22 20.7 19.3 19.4 16.5 17.9 ENTERPRISE CONTENT 14.2 CREATION 11 11.6 10.3 OBJECTIVE GOVERNANCE 8.1 FOR SHAREPOINT 5.5 ENTERPRISE CONTENT MANAGEMENT FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 SOLID FINANCIALS SOLUTION PORTF
Slide 26: Agenda
For personal use only AGENDA INTRODUCTION THE GROWTH OPPORTUNITY FINANCIALS WHY OBJECTIVE 26
Slide 27: Questions
For personal use only QUESTIONS 27
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