Slide 1: Full Year Results Presentation, Year Ending September 2008
For personal use only Full Year Results Presentation Year Ending September 2008 Adrian Di Marco November 2008 Executive Chairman www.TechnologyOneCorp.com Private and Confidential
Slide 2: TechnologyOne Overview
TechnologyOne Overview For personal use only TechnologyOne develops develops, markets markets, sells, sells implements and supports a new generation enterprise e e p se so solution u o spec specifically ca y targeted a ge ed aat seven vertical markets: Local Government Government (State, Centr
Slide 3: TechnologyOne Overview
TechnologyOne Overview For personal use only Our enterprise solution consists of the following products: TechnologyOne Financials TechnologyOne Supply Chain TechnologyOne Human Resource & Payroll TechnologyOne Works & Assets TechnologyOne Business Intelligence TechnologyOne Performance
Slide 4: TechnologyOne Overview
TechnologyOne Overview For personal use only Major supplier off enterprise applications in ANZ – 800+ 800 major corporations, government departments & statutory authorities Growing business in the United Kingdom Top 300 ASX publicly listed company One of Australia’s largest software houses 4
Slide 5: Agenda
Agenda For personal use only 2008 Full Year Results Summary Analysis Significant g Achievements Last Six Months Outlook Our Strategy for Growth 5
Slide 6: 2008 Full Year Results
2008 Full Year Results For personal use only Full Year Revenue $110m $110m, up 41% Net Profit Before Tax $23.1m, up 17% Net Profit After Tax $17.2m, up 17% Expenses excluding R&D $65.9m, up 47% Extended executive & senior management team New ‘House of Products’ business transformation co
Slide 7: 2008 Full Year Results
2008 Full Year Results For personal use only C Continuing ti i strong t d demand d ffor our products: d t 23% iincrease iin lilicence fees Resilience of our business model Student Management licence fees were down $6m compared to last year Continued investments as follows: To build our Uni
Slide 8: 2008 Full Year Results
2008 Full Year Results For personal use only Balance sheet strong Cash & Equivalents*: $23.7m (vs $25.6m 30/9/07) Debt/Equity: 4% (vs 3% 30/9/07) Transparency of results – all R&D fully expensed Dividend (full year) increased to 4.12 cents up 10% Board target payout for full year is 70%,
Slide 9: 2008 Full Year Results
2008 Full Year Results For personal use only 9
Slide 10: 2008 Full Year Results
2008 Full Year Results For personal use only Historical 10 year annual compound growth is as follows: Revenue: 24% per annum compound R&D: 24% per annum compound Net Profit: 21% per annum compound TechnologyOne has been doubling in size every 2 ½ years over the last 10 years 10
Slide 11: 2008 Full Year Results
2008 Full Year Results For personal use only Total licence fees f off $22.6m, $22 6 up 23% Annual licence fees of $36.3m, up 42% Consulting services of $32.8m, up 59% Project services revenue of $10 $10.5m, 5m up 17% Other Revenue of $8.0m, up 8% Technical services revenue of $3.2m, up 6
Slide 12: Product Analysis – Licence Fees
Product Analysis – Licence Fees For personal use only TechnologyOne Student Management licence fees down significantly 85% ($5.8m) to $1.1m - contract delays, discussed later TechnologyOne gy ECM ((newlyy acquired q business)) licence fees of $1.5m - discussed later TechnologyOne Human Resourc
Slide 13: Product Analysis
Product Analysis For personal use only TechnologyOne O Financials/Supply /S Chain C licence fees f up 37% ($2.1m) to $7.7m TechnologyOne Business Intelligence licence fees up strongly, 237% ($3.94m) to $5.6m TechnologyOne Works & Assets licence fees up strongly, 77% ($1.1m) to $2.6m Technolo
Slide 14: Product Analysis
Product Analysis For personal use only Continued to invest in following areas: TechnologyOne CRM – exciting new offering TechnologyOne Next Gen – next generation platform 14
Slide 15: Geographical Analysis – Licence Fees
Geographical Analysis – Licence Fees All Regions g For personal use only All regions performed well 15
Slide 16: Geographical Analysis – Licence Fees, Central Region
Geographical Analysis – Licence Fees Central Region g For personal use only Central region performed strongly, licence fees up 95% (up $4.6m) to $9.4m ACT licence li fees f up significantly i ifi tl ($2 ($2.9m) 9 ) tto $3 $3.2m 2 NSW licence fees up 65% ($1.1m) to $2.7m VIC licence fees up 2
Slide 17: Geographical Analysis – Licence Fees, North West Region
Geographical Analysis – Licence Fees North West Region g For personal use only North West region performed strongly strongly, licence fees up 89% (up $3.75m) to $7.95m QLD licence fees up 81% ($2.2m) to $4.9m WA licence fees up substantially ($1 ($1.35m) 35m) to $1 $1.45m 45m SA licence fees
Slide 18: Geographical Analysis – Licence Fees, Asia Pacific
Geographical Analysis – Licence Fees Asia Pacific For personal use only Asia Pacific licence fees up significantly ($1.2m) to $3.5m New Zealand licence fees down 18% ($421k) to $1.9m - action taken, discussed later PNG licence fees of $1.5m (versus nil last year) Malaysia licence fees of $12
Slide 19: Geographical Analysis – United Kingdom
Geographical Analysis For personal use only United Kingdom licence fees f up strongly to $651k $6 1 3 new significant high profile contracts signed • Royal Liverpool Children's Children s NHS Trust • Institute of Education, a college of University of London • Strathclyde Partnership for Transpor
Slide 20: Agenda
Agenda For personal use only 2008 Full Year Results Summaryy Analysis Significant Achievements Last Six Months Outlook Our Strategy for Growth 20
Slide 21: Significant Achievements Last Six Months
Significant Achievements Last Six Months For personal use only Acquisitions Avand Outcome Manager House of Products Business Transformation Completed New Vertical Market Program Corporate C t Sh Shared dSServices i C Completed l t d Continuing Momentum of Connected Intelligence series
Slide 22: Acquisition of Avand
Acquisition of Avand For personal use only Avand – Enterprise Content Management business Avand company acquired for $7.0m $9.1m consideration less $2.1m net tangible assets on the balance sheet Avand as a standalone business contributed a profit of $498k Turnaround from $700k loss in the
Slide 23: Acquisition of Avand
Acquisition of Avand For personal use only New General G Manager & Consulting C Manager appointed to drive this business forward Develop and implement a 5 year strategy Refocus R&D, consulting & sales Sales to be into our core markets & areas of competencies Product Roadmap now being final
Slide 24: Acquisition of Outcome Manager
Acquisition of Outcome Manager For personal use only Outcome Manager – Performance Planning technology Outcome Manager acquired for $1m $500k up front and $500k earn out Long term relationship before the acquisition Strategically important technology Significant applicability for Local,
Slide 25: House of Products Business Transformation
House of Products Business Transformation For personal use only 25
Slide 26: House of Products Business Transformation
House of Products Business Transformation For personal use only Now N complete l t Simplifies the management of TechnologyOne business Platform for managing our future growth Organisational restructure and change management now completed General Managers appointed to drive each product 5
Slide 27: New Vertical Market Program
New Vertical Market Program For personal use only Focus on seven vertical markets Local Government, Government (State/Central/Federal), Education, Financial Services, Health/Community Services/Not for Profit, Utilities, Managed g Services Our products are the building blocks to deliver totally
Slide 28: Corporate Shared Services Completed
Corporate Shared Services Completed For personal use only Corporate C t Sh Shared dSServices i group created: t d Finance, HR, Payroll, Internal Systems, Legal, Administration Provide world class services to our business units Facilitate fast integration of acquired businesses • Avand integr
Slide 29: Continuing Momentum of CI series
Continuing Momentum of CI series For personal use only Connected Intelligence (Ci) is the new generation of our suite of products Significant competitive advantage over our competitors Strong demand for our products products, due to our new Ci series Only enterprise vendor to release and suc
Slide 30: Research & Development
Research & Development For personal use only R&D running i att $21.2m, $21 2 representing ti 19% off revenue Target is 18% of revenue, approximately $1m over target Detailed Product Roadmaps developed for next 5 years Finalising Ci migration of our products Major new initiatives Pipeline
Slide 31: Momentum in United Kingdom
Momentum in United Kingdom For personal use only 3 significant i ifi t new hi high h profile fil contracts t t signed i d • Royal Liverpool Children’s NHS Trust • Institute of Education, a college of University of London • St th l d Partnership Strathclyde P t hi for f Transport T t (SPT) • Total
Slide 32: Restructure of New Zealand
Restructure of New Zealand For personal use only New e Zealand ea a d has as u under de pe performed o ed oover e tthe e last ast few e years New Zealand now broken into 2 regions: Auckland & Wellington 2 Regional Managers appointed - focus and accountability on each region Will see a substa
Slide 33: Student Management
Student Management For personal use only Student S Management new licence fees f were down $6m $6 compared to last year Student Management R&D also up significantly 89% (up $2.25m) New strategy for Student Management to be developed Focus on sales, marketing and better customer engagement
Slide 34: Agenda
Agenda For personal use only 2008 Full Year Results Summaryy Analysis Significant Achievements Last Six Months Outlook Our Strategy for Growth 34
Slide 35: Outlook – This Year
Outlook – This Year For personal use only Organisations continue to look at streamlining their operations to reduce costs & improve efficiencies Integrated enterprise solutions are the key Our vertical market focus will allow us to add significant value Good p pipeline p of opportunities pp
Slide 36: Outlook – This Year, Other Factors
Outlook – This Year For personal use only Other O Factors Staff attraction and retention Managing M i costs t iin liline with ith revenue growth th 36
Slide 37: Agenda
Agenda For personal use only 2008 Full Year Results Summaryy Analysis Significant Achievements Last Six Months Outlook Our Strategy for Growth 37
Slide 38: Our Strategy for Growth
Our Strategy for Growth For personal use only Our suite of enterprise products give us an unique position in the market ‘House of Product’ business model to bring focus and simplify our business Leverage our large & expanding existing customer base Our trusted relationship status Increase
Slide 39: Full Year Results Presentation, Year Ending September 2008
For personal use only Full Year Results Presentation Year Ending September 2008 Adrian Di Marco November 2008 Executive Chairman www.TechnologyOneCorp.com Private and Confidential