Slide 1: Half Year Results Presentation cover letter
Commercial in Confidence For personal use only 23 May 2016 Company Announcements Officer Australian Securities Exchange Limited Exchange Centre, 20 Bridge Street SYDNEY NSW 2000 BY ELECTRONIC LODGEMENT TECHNOLOGY ONE LIMITED – HALF YEAR RESULTS PRESENTATION Please find attached a copy of the Executi
Slide 2: 2016 Half Year Results – Disclosure Statement
5/23/2016 For personal use only 2016 Half Year Results Half year ending 31 March 2016 24 May May 2016 2016 Commercial in confidence Commercial in confidence FINAL 1.0 Disclosure Statement Technology One Ltd Half Year Presentation - 24 May 2016 Technology One Ltd (ASX: TNE) today conducted a series o
Slide 3: Agenda and Original Guidance
5/23/2016 Agenda For personal use only • Results • Significant achievements • Outlook for full year • Long term outlook Appendix • TechnologyOne Overview Original Guidance Half year results in line with guidance Guidance provided at the start of 2016 financial year1… “As in previous years, this year
Slide 4: Results Summary
5/23/2016 Results Summary Strong result compared to the same period last year, when Revenue was up only 3%. Strong growth to continue over the full year. As per guidance given at start of financial year that the FY16 FY15 Variance % For personal use only sales pipeline was weighted to the second hal
Slide 5: Dividend and Total Expenses
5/23/2016 Dividend For personal use only Dividend Up 10% UP 10% 2.50 Compound Growth 10% Given strong profit growth for 2.00 Cents per share the full year, H1 dividend 1.50 increased 1.00 • 2.36 cps up 10% 0.50 (declared, 100% franked) • Payout ratio of 100% 0.00 2012 2013 2014 2015 2016 • Board wil
Slide 6: Total Expenses and R&D Expenses
5/23/2016 Total Expenses Up 16% ($12.9m) For personal use only 8%, UP 16%, 95 $6.1M $91.5M 2%, 1%, $1.6M 90 5%, $0.9M $4.3M 85 $78.6M #039;m 80 75 70 H1 2015 Acquisition Forex Cloud Underlying Total Expenses Expenses Expenses (1) Expense (2) Expense (3) Expenses (4) 1) Acquisitions: additional $4.3m in
Slide 7: Balance Sheet
5/23/2016 Balance Sheet Mar-16 #039;000 Mar-15 #039;000 Var #039;000 % Cash & cash equivalents For personal use only 45,420 51,703 (6,283) (12%) • Cash & Cash Equivalents1 $45.4m (vs. $51.7m, down $6.3m) Trade and other receivables 39,415 39,246 169 0% Earned and unbilled revenue 16,325 10,941 5,384 49% • Ne
Slide 8: Results Analysis and Key Metrics
5/23/2016 Results Analysis For personal use only 2016 2015 Variance Half Year 2016 v Half Year 2015 % #039;000 #039;000 #039;000 Revenue excl interest 100,570 88,969 11,601 13% Expenses (excl R&D, interest, Depn & Amortisation) 67,460 57,538 9,922 17% EBITDAR 33,110 31,431 1,679 5% R&D Expenditure 21,756 19,
Slide 9: Licence Fees
5/23/2016 Licence Fees For personal use only Licence Fees 25 In Line, $18.5M 20 Compound Growth 5% 15 #039;m 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Licence fees line ball prior year, as was expected • At the end of the 2015 year we identified that the sales pipeline was weighted stron
Slide 10: Annual Support Fees and Cloud Service Fees
5/23/2016 Annual Support Fees For personal use only Annual Support Fees UP 15%, 50 $43.7M 45 40 Compound Growth 17% 35 30 25 #039;m 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Annual Licence fees continue to grow strongly: up 15% • Compound growth over the last 10 years is 17% • Cust
Slide 11: New Cloud Customers for 2016
5/23/2016 New Cloud Customers For 2016 (21) For personal use only Australian Communications Media Authority Legal Practice Board Western Australia Brisbane South Primary Health Network Ltd New Zealand Racing Board CatholicCare Diocese of Broken Bay Ongo Partnership Ltd CBHS Health Fund Limited QLD R
Slide 12: Profit By Segment Analysis
5/23/2016 Profit By Segment Analysis For personal use only 8.0 $3.8m, Down 43% ($2.9m) 7.0 Headcount 124, Up 10% 6.0 5.0 $4m, Up 5% ($204k) $3.1m, Down 6% ($199k) Headcount 376, Up 20% FY14 4.0 Headcount 259, Down 4% FY15 3.0 #039;m ($1.3m), Down 18% ($202k) Headcount 184, Up 12% 2.0 $694k, Up 100%+ ($
Slide 13: Recognition for the TechnologyOne Cloud
5/23/2016 Agenda For personal use only Results • Significant achievements • Outlook for full year • Long term outlook Appendix • TechnologyOne overview 2 Recognition for the TechnologyOne Cloud Amazon Technology Partner of the Year UK Cloud Award – ERP Cloud Product of the Year Preferred sup
Slide 14: TechnologyOne Cloud
5/23/2016 The ensuing shakeout will be a For personal use only cloud significant opportunity for us Technology Adoption Curve TechnologyOne Cloud Enterprise software as a service TechnologyOne Cloud 5.0 now being rolled out Significant leap forward – Mass Production Model Huge economies of sca
Slide 15: Ci Anywhere
5/23/2016 For personal use only Ci Anywhere Enterprise software, incredibly simple Any device. Any where. Any time. 2 Feature Releases per year The ‘train’ always leaves the station ‘on time’ Continuous fixes throughout the year No Documentation Initiative TechnologyOne University Evolve t
Slide 16: Ci Anywhere and New R&D Centre in Vietnam
5/23/2016 Ci Anywhere For personal use only Enterprise software, incredibly simple Any device. Any where. Any time. 2016A now released to early adopters 2016B under development – critical for our Evolve User Conference Deliver all remaining functionality on this platform 2017 calendar year S
Slide 17: Evolve Customer Conference and United Kingdom
5/23/2016 Evolve Customer Conference For personal use only Engage, Enhance, Empower October 2016, Brisbane Convention Centre 1600 attendees, 3 days, 10 streams, 100+ events, 80 speakers, large exhibition area Create sales momentum for TechnologyOne Cloud Create sales momentum for Ci Anywhere
Slide 18: UK Licence Fee Growth to 2022
5/23/2016 UK Licence Fee Growth to 2022 #039;m For personal use only Licence Fees 35 $30.4M, UP 50% Compound Growth 63% 30 25 $20.3M, UP 50% 20 $13.5M, 15 UP 50% $9.0M, UP 50% 10 $6.0M, UP 50% $4.0M, $2.5M, UP 60% 5 $1.4M, UP 79% $0.6M, UP 133% UP 111% 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 $74
Slide 19: Corporate Governance
5/23/2016 Corporate Governance • TechnologyOne has always preferred a small and highly accountable Board (5 For personal use only TechnologyOne members) is committed to continuous improvement of our Remuneration • Some independent Report advisors did not accept and as independent which Mr McLean Cor
Slide 20: Outlook For Full Year
5/23/2016 Outlook For Full Year For personal use only • Substantial base of committed Annual Licence fees heavily weighted to the second half • Strong pipeline of opportunities in second half • We are now preferred supplier for a number of very large contracts, for which we are now in contract negot
Slide 21: Long Term Outlook
5/23/2016 Agenda For personal use only Results Significant achievements Outlook for full year • Long term outlook Appendix • TechnologyOne overview Temporary hiatus due to Cloud loss of $2.5m on revenues of $4.1m. Long Term Outlook Excluding Cloud business, margin is 23%. Net Profit Margin Bef
Slide 22: Controlled R&D Growth
5/23/2016 Controlled R&D Growth For personal use only 2011 Model for R&D Expense Growth (excluding acquisitions) 70 Historical Compound $67m 2015 growth was 7% Growth 16% 2011 Model, shows 60 savings of $20m/year 2014 growth was 6% Model Compound Growth 8% in year 5 (2016) 50 2013 growth was 6% $47m
Slide 23: TechnologyOne Cloud Growth to 2022
5/23/2016 TechnologyOne Cloud Growth To 2022 $143m / year (recurring) in 2022 For personal use only #039;m Annual Contract Value 160 $143.0M Compound Growth 69% Up 26% 140 $113.9M Up 15% 120 $99.0M Up 25% 100 $79.2M Up 50% 80 $52.8M 60 Up 65% $32.0M 40 Up 100% $8.0M $16.0M Up 100% 20 Up 264% 0 FY14 FY1
Slide 24: Long Term Outlook
5/23/2016 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 eight markets Our preconfigured solutions Our large customer base
Slide 25: TechnologyOne Corporate Overview
5/23/2016 Agenda For personal use only Results Significant achievements Outlook for full year Long term outlook Appendix • TechnologyOne overview TechnologyOne Corporate Overview 24
Slide 26: Australia's largest enterprise software company
5/23/2016 Australia’s largest enterprise software company Continually profitable $41m+ For personal use only Invest For over 28 years Back into R&D $47m Profit Formed in 1987 Largest $219m R&D centre Revenue 1000+ in Australia employees 300+ $76m developers Cash 1000+ $1.1b Market Capitalisation Cor
Slide 27: Financially Very Strong
5/23/2016 Financially Very Strong For personal use only • Cash and Equivalents $75.5m • Return on Equity 30+% • Adjusted Return on Equity1 63% • Debt/Equity 2% • Interest Cover 309 • Continually paid dividends since 1996 (20 years) • Continually profitable since 1992 (24 years) As at 30th Sept 2015
Slide 28: The Competitive Landscape
5/23/2016 For personal use only Technology One .. Additional Information Enterprise software as a service The Competitive Landscape New expanding market coverage ORACLE SAP $1,000m Current market coverage TechnologyOne Microsoft Business Solutions $100m SAP/Business One NetSuite Infor (Sun Systems)
Slide 29: What makes us unique: Our enterprise vision
5/23/2016 For personal use only What makes us unique What makes us unique… Our enterprise vision We are one of only a few global enterprise vendors • Suite of 14 products • Deeply integrated • Best of Breed functionality • Common platform • Consistent user interface The power of a single, integrated
Slide 30: What makes us unique: The power of one
5/23/2016 For personal use only What makes us unique What makes us unique… The power of one We do not use implementation partners or resellers We take complete responsibility for building, marketing, selling, implementing, supporting and running our enterprise solution for each customer to guarantee
Slide 31: We focus on eight key markets
5/23/2016 What makes us unique… For personal use only We focus on eight key markets… • Deep understanding and engagement in our markets • Deeply integrated preconfigured solutions • Proven practice • Streamlined implementations • Reduce time, cost and risk We sell to asset and service intensive orga
Slide 32: What makes us unique: The power of evolution
5/23/2016 For personal use only What makes us unique What makes us unique… The power of evolution Substantial investment into R&D each year • New releases encompass new technologies, concepts and innovations • Configuration and not customisation Green screen Client server Web based Cloud computing &
Slide 33: TechnologyOne Cloud
5/23/2016 TechnologyOne Cloud For personal use only Enterprise software as a service • We run our own enterprise software through the cloud • We take responsibility to provide a simple, cost effective and highly elastic model of computing • Unique mass production model delivers economies of scale an
Slide 34: Economy of scale: TechnologyOne SaaS
5/23/2016 Economy of scale TechnologyOne SaaS Mass Production - Massively scalable, Highly efficient , Cost effective Highly resilient & fault tolerant Elastic - add capacity dynamically For personal use only Significant cost savings Future proof - We invest millions annually to make our pro
Slide 35: Ci Anywhere
5/23/2016 Ci Anywhere For personal use only Enterprise software, incredibly simple • Embraces smart mobile devices including iPad, iPhone and Android • Allows users to flow across any and all devices during the course of their day • Consumer concepts deliver powerful enterprise software that is incr
Slide 36: Other Facts
5/23/2016 Other Facts For personal use only Diversity of revenue streams from multiple: • Products 14 • Vertical markets 8 • Geographies 12 - All states of Australia, New Zealand, South Pacific, Asia and UK Strong, very loyal blue chip customer base • We provide a mission critical solution – ‘sticky
Slide 37: Robust Revenue Model
5/23/2016 Robust Revenue Model For personal use only Initial Buy Based on: No of Users, Initial Licence Implementation Service Annual Licence Annual Licence Annual Licence …. Products & Modules Buy Addn Users Initial Licence Annual Licence Annual Licence Annual Licence …. Additional Fee Buy Addn Mod
Slide 38: Our Vision
5/23/2016 Our Vision Clear and focused vision… Transforming business, For personal use only making life simple 37