Technology One Limited · ASX:TNE
Technology One — Goldman Sachs Annual Tech Day 2019
17 slides from Technology One's conference presentation, Oct 24, 2019
Slide 1: Goldman Sachs Annual Tech Day
For personal use only Goldman Sachs Annual Tech Day Commercial in confidence … Disclosure Statement TechnologyOne Ltd Presentation – 24 October 2019 TechnologyOne Ltd (ASX: TNE) today conducted a presentation at the Goldman Sachs Annual Tech Day. These slides have been lodged with the ASX and are al
Slide 2: Agenda: Australia's largest enterprise software company
Agenda For personal use only • Background • TechnologyOne is a SaaS company • Our Strategy • Long Term Outlook Australia’s largest enterprise software company ASX 150 Public Company Continually profitable over 27 years Invest $54m Back into R&D Profit Formed in $67m Largest 1987 R&D centre Revenue 1
Slide 3: Financially Very Strong
Financially Very Strong 104.3M 28 % 68% 0.01% 167 For personal use only $ Cash and Return on Return Debt Interest Cover Equivalents Equity on Equity* Equity Customer Strong Cash 23 27 Retention Generation1 99% Dividends Continually YEARS YEARS continually profitable Grows in line paid since since wi
Slide 4: Our SaaS business is growing quickly
H1 FY19 390+ enterprise customers on TechnologyOne SaaS Up 39% from H1 FY18 Target 1000 enterprise customers by 2022 For personal use only Our SaaS business is growing quickly SaaS ARR is growing at 40+% per annum Forecast FY19 up 40+% ARR UP 40+% This is organic growth ARR UP 45% $23M $73.7M ARR UP
Slide 5: High Quality SaaS Business – Annual Recurring Revenue
For personal use only 100% of all new business driven by SaaS Annual Recurring Revenues will triple to $500+m in FY241 1ARR in FY18 was $177m High Quality SaaS Business – Annual Recurring Revenue Year 1 Year 2 Year 3 Year 4+ Initial Buy Based on: No of Users, Yearly SaaS Fee Yearly SaaS Fee Yearly S
Slide 6: On premise licence business is reducing over time
On premise licence business is reducing over time allowing a smooth transition to SaaS SaaS - High quality annual recurring revenue For personal use only SaaS Revenue vs On Premise Licences Up 27% $460.0M $457.0M $410.0M Up 31% $360.0M $377.0M Up 38% $310.0M $260.0M Up 53% $296.0M $210.0M Up 45% $22
Slide 7: TechnologyOne has been very successful for 30+ years
For personal use only TechnologyOne has been very successful for 30+ years Our success comes from our consistent strategy Our global enterprise SaaS solution transforms our customers’ business, and makes life simple 7
Slide 8: Power of a single integrated solution
Enterprise Software Vendor Business Financials Process Asset Management For personal use only Automation Stakeholder Power of a single integrated solution Management HR & Payroll (CRM) Enterprise Cash Enterprise The power of Receipting Budgeting a single enterprise solution Spatial Supply Chain Perf
Slide 9: TechnologyOne Enterprise Software as a Service
TechnologyOne Enterprise For personal use only Software as a Service One global SaaS solution, mass economies of scale TechnologyOne SaaS – One Global Code Line Economy of scale - Massively scalable, Highly efficient, Cost effective Company A Company B Company C Company D One Global Code Line Techno
Slide 10: SaaS - Incredible pace of innovation
SaaS - Incredible pace of innovation Digital Experience 2 releases a year at no charge Apps Artificial Intelligence New features, functions, capabilities Machine Learning For personal use only Capital Planning & HR Recruitment Delivery Strategic Asset Sourcing Management 212 new features Student sel
Slide 11: Defence in depth security; any device, anywhere, anytime
For personal use only ISO/IEC 27001 ISO/IEC 27017 ISO/IEC 27018 Defence in depth SOC 1 SOC 2 UK G-Cloud security Audit Controls Compliance Controls Australian Federal Government Security PCI DSS 3.2 SAQ-D Standard Any device, Anywhere, Anytime Enterprise Software that intelligently adapts to all dev
Slide 12: Our Strategy
Our Strategy For personal use only ✓ Enterprise software ✓ Deep functionality for the markets we serve ✓ TechnologyOne SaaS – one global solution, mass economies of scale ✓ Any device, Anywhere, Anytime Agenda ✓ Background ✓ TechnologyOne is a SaaS company ✓ Our Strategy • Long Term Outlook 12
Slide 13: Foundations for long term growth
Foundations for long term growth 14 Licensable products1 6 Vertical markets Diversified geographies2 For personal use only Over 325 licensable modules Asset Other. 2% Spatial. 3% United Kingdom. 3% CPM (EB, PP, Intensive. 5% ECM. 7% BI). 21% Health Local Government. New Zealand. 12% Services. 11% 45
Slide 14: Annual Recurring Revenues will triple to $500+m in FY24
For personal use only Annual Recurring Revenues will triple to $500+m in FY24 1ARR in FY18 was $177m Harvest substantial opportunities in Illustrative model only Not to be used as guidance our customer base $420m of additional ARR by FY2027 16 15 14 12 11 8.1 Only 50% 6.6 5.1 Product 4.6 3.8 Penetra
Slide 15: Continuing growth in APAC and the UK
Continuing growth in Our APAC market penetration does not APAC exceed 15%. For personal use only Significant room to grow in future years ✓ Local Government ✓ Education ✓ Government ✓ Health & Community Services ✓ Asset & Project Intensive Industries ✓ Financial Services & Corporates Continuing grow
Slide 16: Profit margin to continue to improve to 25%
For personal use only Profit margin to continue to improve to 25% in the next few years, and then continue to 30% Positioned well for the future and to continue to double in size every 5 years ✓ Global SaaS solution continues to grow strongly ✓ Annual recurring revenues to triple to $500+m in FY24 ✓
Slide 17: Questions?
For personal use only Questions ? 17