Technology One Limited · ASX:TNE

Technology One — FY2014 Earnings Presentation

22 slides from Technology One's earnings presentation, Nov 25, 2014

  1. Slide 1: 2014 Full Year Results Presentation

    For personal use only 2014 Full Year Results Presentation Year Ending September 30th 2014 Adrian Di Marco Adrian_Dimarco@TechnologyOneCorp.com FINAL 3.0 November 2014 Commercial in confidence Disclosure Statement Technology One Ltd Full Year Presentation - 25 Nov 2014 Technology One Ltd (ASX: TNE) t

  2. Slide 2: Results Summary

    Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year  Long Term Outlook Appendix  TechnologyOne Overview Results Summary FY14 FY13 Variance % Profit Profit Before Tax $40.2 m $35.1 m 15% Profit After Tax $31.0 m $27.0 m 15% Revenue $195.1 m $180.6 m 8% Initial

  3. Slide 3: Results Highlights

    Results Highlights For personal use only  Continuing strong performance  Significant investments have continued as follows  United Kingdom ($800k loss)  TechnologyOne Cloud ($2m loss)  Preconfigured solutions ($3m loss)  R&D, including Ci Anywhere ($38m)  Fully expensed as incurred Highlights

  4. Slide 4: Dividend

    Dividend For personal use only Dividends for this year 10.00 Dividend Up 46%  Half 1 1.95 cps up 10% (paid) 8.00 Compound Growth 9% Cents per share  Half 2 4.21 cps up 10% (declared) 6.00 4.00  Sub Total 6.16 cps up 10% 2.00  Special Dividend 2.0 cps (declared) 0.00 2010 2011 2012 2013 2014  To

  5. Slide 5: Balance Sheet

    Balance Sheet For personal use only Strong balance sheet Sep-14 Sep-13 Var % #039;000 #039;000 #039;000  Cash & Cash Equivalents $80.2m (up $14.8m) Cash & cash equivalents 80,209 65,397 14,812 23% Trade and other receivables 30,844 30,509 335 1%  Net Cash*: 24.8c/s (vs.19.5c/s) Earned and unbilled revenue

  6. Slide 6: 2014 Full Year Results – Key Metrics

    2014 Full Year Results – Key Metrics For personal use only 2014 2013 Variance Full Year 2014 v Full Year 2013 % #039;000 #039;000 #039;000 Revenue excl interest 193,353 179,297 14,056 8% Expenses (excl R&D, Depn & Amortisation) 111,994 104,401 7,593 7% EBITDAR 81,359 74,896 6,463 9% R&D Expenditure 37,873 35

  7. Slide 7: Profit By Segment Analysis

    Profit By Segment Analysis For personal use only Net Profit Before Tax $40.2m, up 15% ($5.1m) 16.0 Profit By Segment $13.9m, Up 20% ($2.3m) 14.0 Headcount 287, Down 2% 12.0 Evolve customer event $10.3m, Up 27% ($2.2m) $600k $9.5m, Up 4% ($353k) Headcount 118, Down 1% 10.0 Headcount 215, Down 4% FY12

  8. Slide 8: Revenue Streams

    Revenue Streams For personal use only Annual Support Fees Up 16%, Licence Fees Up 11%, 90 45 $4.0m $11.5m 80 40 Compound Growth 19% 70 35 Compound Growth 16% 60 30 50 25 #039;m #039;m 40 20 30 15 20 10 10 5 - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013

  9. Slide 9: Licence Fee Contribution - Vertical Market

    Licence Fee Contribution - Vertical Market For personal use only Licence Fee Contribution - Vertical Market Managed Services, $2m, 5% Utilities, $2.5m, 6% Education, $9.4m, 23% Local Government, $11m, 26% Financial Services, $5.2m, 12% Health & Community Government, $6.5m, 15% Services, $5.4m, 13% R

  10. Slide 10: Ci Anywhere

    Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year  Long Term Outlook Appendix  TechnologyOne Overview Ci Anywhere Enterprise software Any device. Any where. Any time.  Launched at Evolve Feb 2014  Early adopters in progress, positive feedback  Solution sh

  11. Slide 11: TechnologyOne Cloud

    TechnologyOne Cloud For personal use only Enterprise Software as a Service Future of Enterprise Software, Today  Launched Evolve Feb 2014  Early adopters program finished • 8 customers now live, another 15 in progress  TechnologyOne Cloud 4.0 release imminent • Improved scalability, elasticity &

  12. Slide 12: TechnologyOne’s Journey to The Cloud

    TechnologyOne’s Journey to The Cloud For personal use only TechnologyOne’s Journey to the Cloud ...  Email done  Corporate Accounting done  R&D in the Cloud done  Documents & Files in the Cloud done  Demonstrations via the Cloud done  Consulting in the Cloud Mar 2015 Strengthen Our Executive T

  13. Slide 13: Other Initiatives

    Other Initiatives For personal use only  OneSales initiative – in progress • Streamline our operation - Salesforce rollout • Consistent & disciplined sales approach - Sales Methods rollout • Better executive engagement • Upskill our existing Account Managers • Strategic Account Managers for high va

  14. Slide 14: Outlook for Full Year

    Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year  Long Term Outlook Appendix  TechnologyOne Overview Outlook for Full Year Economic Environment  The enterprise software markets has been one of the most resilient sectors of the IT industry in recent years 

  15. Slide 15: Outlook for Full Year

    Outlook for Full Year For personal use only Full Year - Strong Profit growth to continue in 2015  We expect to see strong continuing growth in licence fees, revenue and profit  In the first half of 2014 we saw a number of significant deals close early, resulting in 2014 half 1 Licence up 24%. This

  16. Slide 16: Long Term Outlook

    Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year  Long Term Outlook Appendix  TechnologyOne Overview Long Term Outlook Focus is to substantially improve Net Profit Margin Before Tax PBT margins through: 35% 31% 29% 27% 30% 25% 26% 24% 25%  Controlled R&D g

  17. Slide 17: Controlled R&D Growth

    Controlled R&D Growth For personal use only Target for R&D growth of 8% per annum compound, over 5 years set in 2011 • Operating leverage, economy of scale, new work practices... • In 2012 & 2013 year we demonstrated this was achievable with R&D growth of 5% and 6% respectively • Continues to be a v

  18. Slide 18: Long Term Outlook: Clear strategy for continuing growth

    Long Term Outlook For personal use only Clear strategy for continuing growth  Resilient nature of the enterprise software market  The breadth and depth of our product offerings  Our enterprise vision  Our focus on seven markets  Our preconfigured solutions Clear Strategy  Our large customer ba

  19. Slide 19: TechnologyOne Overview

    For personal use only Agenda TechnologyOne Overview  Results 300+ Formed in Employees developers 1000+ Revenue  Significant Achievements 1987 900+ R&D in centre corporations, government and statutory authorities $195+m  Outlook for Full Year One of Australia’s most successful software companies 

  20. Slide 20: The Competitive Landscape

    For personal use only The Competitive Landscape What makes us unique ... We are one of only a few Enterprise New expanding market coverage ORACLE SAP/R3 $1,000m Vendors globally...  Single supplier of a suite of 12 products Current market coverage TechnologyOne  Best of Breed functionality We beli

  21. Slide 21: What makes us unique ... Our Vision

    For personal use only What makes us unique ... Our Vision The power of evolution Our enterprise solution adapts and evolves to new technologies Clear & focused vision ... Transforming business, making life simple Green screen Client server Connected Intelligence Cloud Computing and Smart Mobile Devi

  22. Slide 22: TechnologyOne Overview

    For personal use only TechnologyOne Overview TechnologyOne Overview Diversity of revenue streams from multiple:  One of Australia’s largest software houses, specialising in the research, development and • Products (12) commercialisation of enterprise software – invest • Vertical markets (7) $37m+ i

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