Technology One Limited · ASX:TNE
Technology One — Shareholder Meeting (November 2005)
46 slides from Technology One's shareholder meeting presentation, November 2005
Slide 1: 2005 Annual General Meeting
2005 Annual General Meeting Adrian Di Marco November 2005 Chairman www.TechnologyOneCorp.com Adrian_DiMarco@TechnologyOneCorp.com Private and Confidential
Slide 2: Agenda
Agenda 2005 Full Year Results Summary Highlights Significant Achievements Review of Operations Overseas Expansion Outlook By Product By Geography Summary Challenges in 2006 Long Term Outlook Connected Intelligence
Slide 3: 2005 Highlights
2005 Highlights 2005 a year of continuing growth Record Revenue of $55.8m, up 8% Record Profit (NPBT) of $14.3m, up 9% Dividend of 3.10 cents fully franked, up 9% • Yield 5.6% ff on share price of 55cs Strong Operating Cash Flow • $11.1m compared to NPAT of $10.3m Invested strongly in ou
Slide 4: 2005 Highlights
2005 Highlights Adjusted ROE of 55% Unadjusted ROE of 28% Debt/Equity of 3% Capital Buy Back program instigated Manage our capital base in respect of options exercised now and in the future Connected Intelligence
Slide 5: 2005 Full Year Results - Summary
2005 Full Year Results - Summary Dividends (cps) for the Year 3.5 3 2.5 Cents Per Years 2 1.5 1 0.5 0 2001 2002 2003 2004 2005 Year Connected Intelligence
Slide 6: 2005 Full Year Results - Highlight
2005 Full Year Results - Highlight Licence fees to new customers up 17% Strong indicator of the increasing success of our Connected Intelligence product line 83 new customers Annual licence and support revenue of $17.3m, up 20% Implementation and consulting services revenue of $14.8m up 12
Slide 7: 2005 Full Year Results - Analysis
2005 Full Year Results - Analysis Technology One Financials (Finance One) suite revenue up 7% Involved in almost all deals Have not yet tapped into the full potential of our Supply Chain and HR/Payroll (People One) Technology One Rating and Property Management (Proclaim One) revenue up 18%
Slide 8: Agenda
Agenda 2005 Full Year Results Summary Highlights Significant Achievements Review of Operations Overseas Expansion Outlook By Product By Geography Summary Challenges in 2006 Long Term Outlook Connected Intelligence
Slide 9: Significant Achievements
Significant Achievements Success of our new Finance One CI Organisational Changes Connected Intelligence
Slide 10: Success of Finance One CI
Success of Finance One CI Finance One Connected Intelligence (CI) – a new generation of financials to support a more devolved and empowered organisations 34 customers live on CI platform (at 1 October 2005) Another 42 customers in progress of implementing CI Product leadership position over
Slide 11: Organisational Changes
Organisational Changes Technology One continues to evolve and change Transition to a new executive team Increased bandwidth to better manage our expanding business Commitment to “Think Globally, Act Locally” Better pipeline management Better interaction between regions and head office
Slide 12: Organisational Changes
Organisational Changes Changes made to better address the ‘roll out’ of new software to the market Product Marketing – support our sales people in the field to win business Product Service Delivery – support our consultants in the field to implement Connected Intelligence
Slide 13: Organisational Changes
Organisational Changes More changes planned over the next 12 months R&D – changes to focus on delivering AWESOME software Consulting – changes to focus on delivering EXCEPTIONAL customer service Sales – dramatically increase the effectiveness of our sales organisation Connected Intelligence
Slide 14: Agenda
Agenda 2005 Full Year Results Summary Highlights Significant Achievements Review of Operations Overseas Expansion Outlook By Product By Geography Summary Challenges in 2006 Long Term Outlook Connected Intelligence
Slide 15: Review of Operations
2005 Annual General Meeting Review of Operations RichleyDiDown Adrian Marco November 2005 Operating Officer Chairman www.TechnologyOneCorp.com Richley_Down@TechnologyOneCorp.com Adrian_DiMarco@TechnologyOneCorp.com Private and Confidential
Slide 16: 2005 Significant Achievements
2005 Significant Achievements Increased Sales Regional Achievements Continued R&D Program Connected Intelligence
Slide 17: Increased Sales
Increased Sales 83 new customers Licence fees to new customers up 17% Strong indicator of the increasing success of our Connected Intelligence product line Significantly improved sales pipeline management Connected Intelligence
Slide 18: General Commercial (Australia Only)
General Commercial (Australia Only) 45 new general commercial clients: 5 Utilities - CrossCity Motorway Pty Ltd, State Water Corp, Southern Rural Water, Papua New Guinea Harbours Limited, Adelaide Airport Limited 12 Corporate - SMB Fleet Management, The Marketing Department, Mitsui Coal Holdin
Slide 19: Local Government
Local Government 14 new Local Government clients: Armidale Council Clarence Valley Council Snowy River Shire Council Environmental Bay of Plenty Regional Council Far North District Council North Shore City Council Mareeba Shire Council City of Campbelltown SA City of Holdfast Bay
Slide 20: State and Federal Government
State and Federal Government 12 new State and Federal Government clients: NSW Long Service Payment Corporation NSW Office of State Revenue Project ACT Department of Justice and Community Safety Northern Territory Archives Service Commerce Commission Energy Efficiency Conservation Autho
Slide 21: Payroll/HR and Work One
Payroll/HR and Work One People One (Payroll/HR) 37 new contracts signed Sold as ‘add on’ to Finance One, not as best of breed • Played an important part in winning Finance One deals 103 customers now using People One Work One (Asset and Work Management) 17 Work One contracts signed Ver
Slide 22: New Zealand
New Zealand 15 new clients in New Zealand Port of Tauranga Limited NZ Automotive Association Incorporated Wellington Institute Of Technology Ticketek New Zealand Limited Pinnacle Group Limited Commerce Commission Energy Efficiency Conservation Authority Ministry of Agriculture and
Slide 23: Malaysia
Malaysia 4 new clients in Malaysia Hijrah Venture Holdings Malaysia Khazanah Holdings Berhad Nando's Chickenland Malaysia Sdn Bhd Delcom Services Malaysia Connected Intelligence
Slide 24: Regional Achievements - Australia
Regional Achievements AUSTRALIA 62 deals signed with new customers in Australia across all regions Sales, implementation and relationship managers built around a vertical market focus Development of teams of specialists for areas such as Payroll/HR Improved Client Relationship Management t
Slide 25: Regional Achievements - New Zealand
Regional Achievements NEW ZEALAND 15 new clients signed in the last 12 months Now one of the two major players in the local government market Opening of new office in Wellington enabled us to grow our market share in central government as well as other sectors Connected Intelligence
Slide 26: Regional Achievements - Asia and the Pacific
Regional Achievements ASIA AND THE PACIFIC Malaysian office had its most successful year in 2005 including signing a partnership agreement with a local organisation to represent us in Asia and the Middle East Won several large deals in the Pacific; this is now an area of focus for us Connected
Slide 27: Continued R&D Program
Continued R&D Program R&D continued at 18% of revenue, fully expensed Significant enhancements across all our products Introduction of domain teams to improve product quality and increase innovation and productivity Introduction of a new formal product roll out process Substantial effort e
Slide 28: Continued R&D Program - Financials
Continued R&D Program Technology One Financials (Finance One) Delivered first release of our Connected Intelligence (CI) Series CI significantly raises the bar in enterprise technology with its focus on being user centric rather than functionality centric Focus on delivering multi-currency f
Slide 29: Continued R&D Program - Retail One
Continued R&D Program Supply Chain and Retail Management (Retail One) Consolidated the retail management solution Completed initial stages of migration to the Connected Intelligence (CI) platform 2006 development will focus on finalising migration to the CI platform and delivering improvemen
Slide 30: Continued R&D Program - Work One
Continued R&D Program Technology One Work and Asset Management (Work One) New solution to complete our solution for local government and asset intensive industries Totally integrated to our local government solution as well as Financials and Human Resource and Payroll Provides clients with p
Slide 31: Continued R&D Program - Business Intelligence
Continued R&D Program Technology One Business Intelligence (Enterprise One) Significant new direction Business Intelligence “out of the box” across all our products Lower cost of ownership; Technology One aware but also able to incorporate other non Technology One data sources A separate R
Slide 32: Continued R&D Program - People One
Continued R&D Program Technology One Human Resources and Payroll (People One) Two major new releases delivered to the market Increased depth of functionality included: • Additional Human Resource functionality • Training • Automated forms • Integration to Work One Market is looking to vendor
Slide 33: Continued R&D Program - Proclaim One
Continued R&D Program Technology One Rating and Property Management (Proclaim One) Solution now used by local government authorities, utilities, ports and airports, commercial property managers and not for profit organisations Three major new releases of the product Development included inte
Slide 34: Continued R&D Program - Student One
Continued R&D Program Student Administration (Student One) Development focused on providing timely compliance with new government reporting requirements Technology One the first vendor to provide its clients with the ability to comply to the new legislative requirements Development in 2006 w
Slide 35: Continued R&D Program - New areas
Continued R&D Program New areas under investigation CRM – Customer Relationship Management Contract Management Fleet Management Property Management Connected Intelligence
Slide 36: Agenda
Agenda 2005 Full Year Results Summary Highlights Significant Achievements Review of Operations Overseas Expansion Outlook By Product By Geography Summary Challenges in 2006 Long Term Outlook Connected Intelligence
Slide 37: Overseas Expansion
Overseas Expansion United Kingdom Office opens early 2006 Country Manager identified and appointment in progress Australian staff to go across as ‘culture carriers’ Power of One business model to be adopted Opportunities for substantial growth – market estimated to be 3+ times size of Au
Slide 38: Agenda
Agenda 2005 Full Year Results Summary Highlights Significant Achievements Review of Operations Overseas Expansion Outlook By Product By Geography Summary Challenges in 2006 Long Term Outlook Connected Intelligence
Slide 39: Outlook by Product
Outlook by Product Finance One CI gaining traction 76 customers now signed up to CI Increase win rate expected Improving market conditions Will need to carefully manage the roll-out of CI to our existing customers so as not to slow our ‘win rate’ Proclaim One The new CI series coupled
Slide 40: Outlook by Product
Outlook by Product People One Total of 103 clients now using People One (vs 53 last year) Addition of HR functionality and the new CI series will position this product well in the future Focus on product stability and user satisfaction over the next 12 months Becoming critical in the sale
Slide 41: Outlook by Product
Outlook by Product Student One Significant opportunities in 2005/2006 Callista and PeopleSoft ‘melt down’ Student One CI will position us strongly – available late 2006 Project Services Re-look at the strategy going forward in NSW and Victoria Re-align to add value to our products thro
Slide 42: Outlook by Geography
Outlook by Geography Australia Market conditions continue to improve Increase “win rate” expected New Zealand Strong opportunities going forward Increase “win rate” expected Malaysia Target smaller deals to get into larger opportunities Partners to access more deal flow United Ki
Slide 43: Outlook - Summary
Outlook - Summary Expect growth of 5% to 10% in 2006 Assumptions: Market conditions continue to improve Increased win rate from CI Increased penetration of Student One, People One, Proclaim One Opportunities from Work One and Enterprise One initiatives Limit our expenditure on the Unit
Slide 44: Long Term Outlook
Long Term Outlook Growth will come because of our integrated strategy: Focus on business software solutions Financials, Supply Chain, HR/Payroll, Work/Projects, Student Administration, Rating and Property Management, Business Intelligence etc. New Connected Intelligence series • Positions us
Slide 45: After Word
After Word These slides are available from the company’s web site, under the Investor Relations section: www.TechnologyOneCorp.com Connected Intelligence
Slide 46: 2005 Annual General Meeting
2005 Annual General Meeting Adrian Di Marco November 2005 Chairman www.TechnologyOneCorp.com Adrian_DiMarco@TechnologyOneCorp.com Private and Confidential