Technology One Limited · ASX:TNE
Technology One — Shareholder Meeting (February 2022)
15 slides from Technology One's shareholder meeting presentation, Feb 23, 2022
Slide 1: FY21 Annual General Meeting
FY21 Annual General Meeting Update image and content Edward Chung Chief Executive 1 Disclosure Statement TechnologyOne Ltd Annual General Meeting – 23 February 2022 Technology One Ltd (ASX: TNE) today conducted its Annual General Meeting at the Brisbane Convention & Exhibition Centre. These slides h
Slide 2: Agenda
Agenda • Results & Significant Achievements • Outlook for Next Year • Long Term Outlook 3 Record Profit NPBT of $97.8m, up 19% Guidance provided was Net Profit Before Tax of $94.3m to $98.6m 4 2
Slide 3: FY21 – Very Strong Result
SaaS continues to drive our growth $192.3m up, 43% Outlook for FY22 is strong Discussed later in more detail 5 FY21 – Very Strong Result Continue to unwind our traditional Legacy Licences Legacy Licences1 of $16.8m, down 38% ($10.8m) as planned $11m immediate P&L reduction in FY21 Legacy Licence als
Slide 4: Our future state business expected to grow at 15%+ pa
Our future state business expected to grow at 15%+ pa $2 50m $700.0m $500m+ $600.0m $2 00m Total Revenue Revenue - SaaS & Continuing $500.0m $311m Business up 15%+ pa $1 50m Revenue - SaaS & Continuing $400.0m $294m Business up 9% on prior yr $300.0m $1 00m $200.0m $5 0m $100.0m $75m $43m $28m $18m
Slide 5: Quality of SaaS Revenue is very high
$145m ARR Runway moving on-premise to SaaS by FY26 120% $280.0m We expect SaaS ARR vs on-premise 90%+ 100% $230.0m $145m+ of on-premise SaaS to move to ARR from SaaS by FY26 Existing on- 80% $180.0m $192.3m premise $155.8m Customers % of on-premise customers $134.6m $110.2m 60% $130.0m % of SaaS cus
Slide 6: Total Annual Recurring Revenue will increase to $500m+ by FY26
Total Annual Recurring Revenue will increase to $500m+ by FY26 1Total ARR in FY21 was $257.5m 11 Profit margin to improve to 35%+ in the next few years Driven by the significant FY21 Profit Before Tax Margin was 31% economies of scale from our single instance global SaaS ERP 31% solution 28% Cost
Slide 7: We expect to double in size every 5 years
We expect to double in size every 5 years FY21 NPAT was $72.7m Up 15% on FY20 NPAT $72.7m $62.9m $58.5m $51.0m $44.5m $41.3m $35.8m $31.0m $27.0m $23.6m FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 the last six years compound growth in NPAT has been 14% per annum. 13 Balance Sheet Strong Cash a
Slide 8: Cash Flow; Significant investment for future growth
Cash Flow NPAT versus Cashflow Generation Cash Flow Generation of $63.9m, up $6.9m, up 12% $57.0m $63.9m 88% of NPAT of $72.7m v Expectation set of 80% of 88% NPAT NPAT NPAT Strong and disciplined cash collection $62.9m $72.7m • Note: Cash Flow Generation at H1 FY21 was -$3m FY20 FY21 NPAT Cash
Slide 9: DXP 2.0 and United Kingdom
DXP 2.0 Excellent feedback LG DXP – First customer live on phase one Student DXP – In research stage “My feedback is nothing but great! I see that there have been some thought that’s gone into make our work easier for both ourselves and our customers. Super excited. Can’t wait” City of Canning 1
Slide 10: Scientia Expands Enterprise Solution for OneEducation
Scientia Expands Enterprise Solution for OneEducation Financials Procurement Budgeting Supply Curriculum Chain Management “The one thing that students care most about is their timetable. Being able to fully integrate a schedule into Enterprise the full student experience is very important, and an Sc
Slide 11: 500,000 children and their families out of poverty
“TechnologyOne has more than exceeded my expectations through the Foundation and 1% Pledge focused on youth. Now as an employed graduate with TechnologyOne I am still able to not only continue my own avenue of volunteering with the youth through the 1% of paid time they allow for such, but also prou
Slide 12: FY21 Summary
FY21 Summary Record profit and SaaS ARR of Total ARR of revenue, record SaaS $192.3m, up 43% $257.5m, up 16% ARR We will Profit before tax double Revenue for our SaaS and continuing business Profit Before Tax of margin of 31%, in size of $293.6m, up 9% $97.8m, up 19% up from 28% every 5 years Cash a
Slide 13: Outlook for 2022 Year
Outlook for 2022 Year Strong Profit growth to continue in 2022 • The markets we serve are resilient. TechnologyOne provides mission critical software with deep functionality for the markets we serve • Our Global SaaS ERP allows our customers to innovate and meet the challenges ahead with greater agi
Slide 14: Positioned well for the future
Positioned well for the future and to continue doubling in size every 5 years • SaaS continues to grow strongly • Harvest substantial opportunities in our customer base • Continuing growth in APAC • Continuing growth in the UK • Profit margins to grow to 35%, through significant economies of scale 2
Slide 15: Our People
technologyone transforming business, making life simple 15