Slide 1: Annual General Meeting
www. TechnologyOneCorp.Com Annual General Meeting vail By Technology One Intelligent Business Solutions
Slide 2: Agenda
oy eine = Review of Operations « Operating Environment = 2004 Company Strategy = Outlook
Slide 3: 2003 Results Highlights
www. TechnologyOneCorp.Com. 2003 Results Highlight vail By Technology One Intelligent Business Solutions Adrian_DiMarco@TechnologyOneCorp.com Executive ( hairma
Slide 4: 2003 Results Highlights
hlight- * Record R&D expenditure of $9.3m (up 14%) = 19% of Revenue spent on R&D = All R&D continued to be fully expensed as incurred * Net Profit After Tax of $7.03m (down 20%) = Well within guidance of down 25% set in November 2002 * Dividend of 2.5 cents fully franked (up 25%) = Yield of 5.6% ful
Slide 5: Revenue growth slowed due to a very difficult market
» Revenue growth slowed due to a very difficult market » Committed to a subsiantial investment program 12 months ago - Increased R&D — Increased staff levels in our regional service network — Inthe 2003 year we were hit with 100% of these costs — the previous year on average only 50% of these costs
Slide 6: Minimal new staff planned for this year
* Minimal new staff planned for this year unless revenue generating * Existing staff focused on: = Complete existing R&D projects — realise value = Our next generation products = Staff redeployed to where they can have the biggest impact * Restructure of the company = Discussed later
Slide 7: Balance sheet strong
sheet strong » Cash on hand : $17.29m » Debt/Equity : 3% " Operating cashflow : $9.6m (vs NPAT $7.0m) = Added 46 new clients « Transparency of results — all R&D fully expensed
Slide 8: Competitor Revenue Comparisons (1999 as base)
% Change from base in 1999 Competitor Revenue Comparisons (1999 as base) 200% 150% 100% 50% 0% -50% -100% 1999 2000 2001 Year 2002 2003 —e@Oracie —m—Peopiesoft SAP —¢— Technology One —e—J D Edwards —@— GEAC —m—Epicor wads Systems Union (inc| Sun Systems)*
Slide 9: Competitor R&D Comparisons (1999 as base)
% Change from base in 1999 300% 250% 200% 150% 100% 50% 0% 50% 100% 1999 Competitor R&D Comparisons (1999 as base) 2000 2001 2002 2003 —@—Oracle —— Peoplesoft SAP =@—Technology One —e—J D Edwards —e— GEAC* —#—Epicor «lffe Systems Union (inc Sun Systems)" Year
Slide 10: Capital Management Program
ital Management Program — 1) To « Share buy back completed * Bought 19.679m shares @ 25 cents for $4.92m
Slide 11: Review of Operations for 2003
Review of Operations for 2003 vail By Technology One Intelligent Business Solutions Ron Ms tee eeiaaiaaOnacan com _ Chiet Executive Officer (Operations)
Slide 12: Review of operations topics
*» Company Wide Achievements and Highlights * Regional Achievements and Highlights « Product Division Achievements and Highlights « Project Services Achievements and Highlights
Slide 13: Company wide achievements
increased to $47.4 million =» 46 new clients added to user base * Appointment and implementation of regional ownership « Appointment of Specialist Product Business Managers for targeting vertical markets
Slide 14: Company wide achievements: R&D and support
(R&D) teams « Restructure of Product Support Centre = Became part of Specialist Product Business Units = Continued investment in software * In the 2003 Financial Year $9.3 million, representing 19% of revenues, fully expensed « Increase in Project Services revenue
Slide 15: Product suite
* Finance One — Financial Management and Accounting = Retail One — Retail and Supply Chain Management * Sales One — Wholesale and Distribution = People One — Payroll and Human Resource Management * Student One — Higher Education * Proclaim One — Local Government = Application Development Framework «
Slide 16: Regional highlights: Queensland and New South Wales
Regional . *" Queensland Region » 7 new major clients including Public Trustee, Queensland Tourism * New South Wales = Five new local councils * Replaced SAP at Wollongong City Council = First sale to educational institution (Insearch) of total Technology One solution — Student One — Finance One
Slide 17: Regional highlights: Victoria and South Australia
everal new clients including Environmental Protection Authority (a major and strategic state government account replacing Oracle Financials) * Finalising implementation of The Good Guys (our largest supply chain management project to date) * South Australia Region * Successful entry into South Austr
Slide 18: Regional highlights: Western Australia and ACT
Regional : es stralia Region * Completed largest Finance One implementation to date with 15 WA Tafe Colleges going live on time and on budget * Won Stirling Council, the second largest council in Technology One client base * ACT Region = Opened Canberra office and completed smooth transition of all
Slide 19: Regional highlights: Tasmania and New Zealand
Regional | «= Won deal with Southern Cross Broadcasting (Strategic account with national presence) » People One sold to fifth Tasmanian client (20% of Tasmanian clients now use People One) « New Zealand Region * Technology One New Zealand grew business substantially adding 10 new Finance One clients
Slide 20: Regional highlights: Malaysia
laysian Regio * Technology One Malaysia now 100% managed and operated by local personnel » Won five new accounts including DDSB (M) Sdn Mhd, Mandom and Teliti Computers Sdn Bhd * Extended number of partnerships
Slide 21: Finance One achievements
Continued to perform well and was successfully sold by all regions Release 10.2 delivered during the year Release 10.2 incorporated several new modules, including Workflow and Purchase Cards Restructuring of Support Centre, resulting in a reduction of 66% of outstanding requests and the improvement
Slide 22: Retail One achievements
* Largest and most significant new development since product conception » Majority of development was of new modules and features * Point of Sale product totally redesigned in a major development (POS One R3.0) improving product viability, supportability and stability
Slide 23: People One and Student One achievements
ghli ; = Delivered major new functionality in Release 10.2 * New stand alone Time Sheet module » New Occupational Health and Safety Module, facilitating incident recording and reporting « Student One = Student One R2.4 released during year = Included enhancements to core modules: ~ ePay — allows stu
Slide 24: Proclaim One achievements
Product Division hi » Extensive development undertaken for compliance to legislative and regulatory changes throughout Australia and New Zealand = Further development to tightly integrate Proclaim One and Finance One as well as to third party products. ~ Providing robust single supplier solutions fo
Slide 25: Connected Intelligence development
Product Division Achi eC * Completed development of a new infrastructure for building the next new generation of application - Connected Intelligence * Utilises Microsoft .Net framework and provides substantial advantages, including: — Smart user interface — more functional and more powerful than co
Slide 26: Project Services: Nine Network and NSW Police
* Completion of Nine Network Australia Sales and Traffic Project ($3.6M custom development using Technology One’s new .Net Development Framework) » Live operation of NSW Police Informants Project ($1.2M custom development project to manage all NSW Police informants and sources utilising our J2ZEE De
Slide 27: NSW Police eNotices and strategic partners
* Awarded NSW Police eNotices Project, $1.3M (manages police and court notices, such as warrants, subpoenas and apprehended violence orders) * Stronger relationships with our two strategic partners Microsoft and BEA (where new clients are being recommended to use Technology One’s services by both ve
Slide 28: Operating environment
environment = Restructured Regions and Product Divisions to achieve better accountability, better software and better customer service « Continued to invest strongly in research and development " Redeveloping major applications in next generation technology platform Connected Intelligence
Slide 29: 2004 Company Strategy & Outlook
2004 Company Strategy & Outlook vail By Technology One Intelligent Business Solutions Adrian_DiMarco@TechnologyOneCorp.com Executive ( hairma
Slide 30: The Operating Environment
The Operating Environment Pp = Consolidation of ERP Vendors « Buyers Revenge Phenomenon « Technological Obsolescence
Slide 31: Our competitors' approach
= Our competitors approach = Reduced R&D expenditure * Reduced staff numbers » Aggressive pursuit of revenue * Acquisition strategy for growth = Our approach is opposite to this!
Slide 32: Consolidation of ERP Vendors
Consolidation of ERP Vendors = No evidence that this delivers benefits * Acquisition of overlapping products not on TNE agenda = Our focus is on our own products and partnerships
Slide 33: Buyers' revenge and our business model
| existing ERP systems * Future buyers will be very literate and demanding * The name of the game: “Who will keep their customers and who will lose them” * Our business model is unique * Our business model is far superior to our competitors = We develop, we market, we sell, we implement and we suppo
Slide 34: Migration to a new platform
nto all products. =» SAP - ABAP = Microsoft — VB = PeopleSoft - HTML = TNE-VB * The challenge = Inertia = Choosing the right platform = The migration of customers to the new product = Our new product — the opportunity to get product leadership » Net platform = And a lot more....
Slide 35: Our Strategy for 2004 and 2005
Our Strategy for 2004 and 2005 Leadership * Product Marketing * Focus and Commitment * Partnership * “Act Locally — Think Globally” * Customer Satisfaction « “Great Software Every Day, Every Way”
Slide 36: Connected Intelligence series
Intelligence series (Cl) = Connected Intelligence series consists of: » Finance One: Cl * Retail One: Cl = People One: Cl = Proclaim One: Cl = Student One: Cl
Slide 37: Connected Intelligence applications
lly raise the bar in 1 the ERP market, ‘by combining | for the first time the advantages of client server and the internet to create a new generation of applications that will support the move by organisations to a more devolved and empowered business model that seamlessly connects customers, suppli
Slide 38: Leadership positioning
eadership positioning! « A new way to develop software — it will have a profound effect on our development teams and our future product leadership! = Product to address a devolved business model
Slide 39: Minimise risk and release dates
= Minimise risk = Control R&D expenditure = Release dates: = Finance One: Ci — R1 completed mid 2004 = Retail One: Cl — R1 completed mid 2005 * People One: Cl — R1 completed mid 2005 = Proclaim One: Cl — R1 completed mid/late 2005 = Student One: Cl — R1 completed late 2005
Slide 40: Product Marketing
f : Product Marketing _ in the market: Analysis of our competitors’ strengths and weakness Determination of our strengths and weakness Identifying product direction Identifying partnerships Creating an integrated marketing strategy to leverage our strengths and minimise our weakness Ensuring our mar
Slide 41: Finance One and Retail One next 12 months
NO 18 months « Finance One » Finance One: Cl is the major focus for the next 12 months " Retail One » Focus on fashion functionality in the next 12 months = Improve sales — specialist resources to be added as part of team focused on sales of Retail One as #1 priority = Retail One: Cl to start mid 20
Slide 42: People One and Proclaim One next 12 months
Focus on functionality in the next 12 months -- Human Resources in particular = Short term — sell as ‘add on’ to Finance One = People One: Ci to start mid 2004 = Medium term — best of breed Payroll/HR - will need a stronger and specialist sales focus = Proclaim One = Focus on functionality in the ne
Slide 43: Student One next 12 months
O Focus on functionality in the next 18 months Focus on a small number of winnable deals, rather than all deals Incremental business from the existing user base is critical Student One: Cl to start early 2005
Slide 44: Constraints and partnerships
7 cial constraints =» Domain knowledge and creativity » Need to focus on what we have already in the next few years « Partnerships so far: * |nfoplan — Assets (financial) = Chameleon — Business One * Crystal Decisions — Crystal =» EMS -— Wasp Asset Management
Slide 45: CRM and Professional Services Automation
= CRM = Professional Services Automation = We need to get better and do more of these = Product Marketing will play an important role in this
Slide 46: Regional framework and strategy
framework and strategy Too many regions to run from Brisbane! Each region is unique Appointed Regional Managers Business plan developed each year by each region Profit and Loss responsibility at regional level to ensure our resources are effectively used in each region
Slide 47: Services on a regional basis
services on a regional basis = Products to sell * Infrastructure to support selected products * Tailoring sales and marketing strategy * Pricing = Partners to work with ...
Slide 48: Who will keep their customers
“Who will keep their customers and who will lose them’ * “Buyer’s revenge” = Oversold, over-budget, over-charged * Microsoft = Use distributors to sell and implement = Plan to substantially increase the number of distributors * Oracle, SAP, PeopleSoft = Use partners to implement * Industry Consolida
Slide 49: Our business model is superior
= Our business model is far superior to our competitors ~ We develop, we market, we sell, we implement and we support ~ We own the customer relationship * Regionalisation means decision making is at the coal face = Account management = Customer surveys on a continual basis
Slide 50: Customer satisfaction
‘Satisfaction » Increase the quality of our services ~ Consistent approach/processes across all regions ~ Appointed practice managers for sales ~ Appointed practice managers for consulting = Our attitude/culture ~ Everyone must be customer focused/centric ~ The customer’s perception is reality!
Slide 51: Innovation and speed in our products
vation and Speed in our pr * Moved to Smaller R&D teams = Appointed Product Business Managers = Support center and development combined ~ Incremental improvements to the products quickly based on customer feedback = Published release plans * Business model to ensure funds go to the right products ~
Slide 52: Great Software Every Day, Every Way
Great Software Every Day, Every Way = Focus on software quality = Work with Product Marketing - right functionality at the right time and correct prioritisation - Clear, concise and powerful product positioning messages ~ What we develop is correctly and consistently demonstrated
Slide 53: Outlook
« We expect growth of revenue and profits to resume this year as a result of our initiatives = Early trading results support this outlook * R&D will be maintained at approx 20% of revenue = Focus on Connected Intelligence series « We are committed to maintain the current dividend
Slide 54: Slides available from company website
These slides are available from the company’s web site, under the Investor Relations section: www. TechnologyOneCorp.com
Slide 55: Annual General Meeting
www. TechnologyOneCorp.Com Annual General Meeting vail By Technology One Intelligent Business Solutions