Slide 1: Integrated Research Limited financial results
by integrated Research Integrated Research Limited financial results ABN: 76 003 588 449 August 2006 Precise performance monitoring for business-critical systems
Slide 2: Full year results: FY 2006
_ Full year results: FY 2006 Licence fees Maintenance fees Other Totalrevenue | (cents) R&D expenses 6,687 6,241 7% SG&A expenses 20,234 18,925 7% PBT 7,967 8,241 ~3% PAT *7,003 6,238 12% EPS (cents) 4.22 3.77 12% Dividends for the year 2.5 2.5 0% * Includes $806k FDT offsets Prior period comparativ
Slide 3: Highlights & Looking Forward
Highlights &LookingForward = sit ° Strong result from HP NonStop * Positive organisational changes in H1 showed results in H2 ° Expanded relationships with key partners * H2 analysis key to understanding momentum « HP NonStop steady growth through next year * Large IP telephony deployments increasin
Slide 4: Balance sheet
_Balancesheet __ Key balance sheet items Cash Receivables 13,615 10,079 Net R&D 9,567 8,885 Deferred Revenue 10,163 9,007 Net assets 23,288 19,958 Prior period comparatives restated for AIFRS PROGNOSIS
Slide 5: R&D spending
_ R&Dspending Gross spending 7,348 7,747 -5.2% Capitalised 4,657 4,113 13.2% Capitalised % 63% 53% Amortised 3,996 2,607 53.3% Net spending 6,687 6,241 7.2% % of revenue 19% 19% Prior period comparatives restated for AIFRS PROGNOSIS -
Slide 6: Cashflow
Cashflow > « Cashflow from Operating Activities was A$5.4m (2005: A$6.7m) « Capex for 2006 was A$0.5m (2005: A$0.7m) « Focus on improving receivable days outstanding « Historically low bad debt experience « Blue chip customers PROGNOSIS
Slide 7: Review of operations
_ Review of operations « 18 half performance adversely affected the full year result « Organisational changes (1* half): ° USA - new team and leadership ° Asia Pacific - new leadership and domestic business focus ° IP telephony growth 2"¢ half 2005 to 2"¢ half 2006 was 55% ° 2°¢ half 2006 of $4.6m (
Slide 8: Market Observations
Market Observations == ss . IP telephony: New pilots/trials continues in enterprises « Existing customer rollouts taking longer than expected « Integrators becoming active « Partner relationships building « Windows, Unix, Linux: « Competitive landscape changing « Strengthening focus in 2007 * Platfo
Slide 9: Customer list
BT T Syntegra Wells Fargo Sungard Financial Systems Equant PLC (France Telecom) Vodacom SA Rabo Facet BV JP Morgan (BancOne) Visa International Chicago Mercantile EJPD OO Sabre Inc. AT&T Wireless Services T-Systems Int. GmbH Dell Computer * LOTO - Quebec Charles Schwab. Vodacom DR Congo * OTP Bank R
Slide 10: Results - FY 2003-2006
Results - FY 2003-2006 _ Revenue Licence fees NPAT PBT A$ millions A$ millions A$ millions A$ millions AS millions AS millions 2003 2004 2005 2006 2003 2004 2005-2006 2003 2004 ©2005 «2006 2003 2004 «2005 2006 Year Year Year Year AON Ie
Slide 11: Sales by region - FY 2003 – 2006
Americas — US$ millions USS million 9.0 2003 2004 =—2005 = 2006 Year _ Sales by region - FY 2003 — 2006 UK/Europe — GBP millions Millions GBP 25 Asia Pacific - US$ millions 2003 2004 «2005 = 2006 Year 3.0 2003 2004 = 2005-2006 Year
Slide 12: Sales breakup - FY2006
Salesbreakup-FY2006 = ——“—sS License Fees by platform License Fees by region IP Telephony Window sf UNIX/Linux HP NonStop PROGNOSIS
Slide 13: 10-year revenue history
40-year revenue history 10-year revenue history — A$ millions $40.0 $35.0 O Other Revenue $30.0 @ Licence Fees a @ Maintenance § $25.0 é @ << $20.0 @ 3 & S $15.0 a & $10.0 . 1 $0.0 1997 1998 1999 2001 2002 2003 2004 Year
Slide 14: 10-year revenue history — US$ millions
10-year revenue history — US$ millions 30 25 20 10 Revenue - US$ millions a a OD Other Revenue m@ Licence Fees @ Maintenance 2005 2006 FY2003 affected by lraq war PROGNOSI
Slide 15: Looking Ahead
el ooking Ales 62 * Majority of FY2007 forex exposure effectively hedged « Growth in all products and regions « Continued investment in products and sales « IP telephony offers substantial multi year growth opportunities ° Prognosis is the leading product * Strengthened management team « 3 strong pr