Slide 1: Technology One 2006 Full Year Results
LSS a ae : eee oe | i i ol i i‘ _ _ . - _ Le oe oe / [o | . oo a . L a . | . a — co oO i 2 - Adrian Di Marco Executive Chairman Adrian_DiMarco@TechnologyOneCorp.com oe _- u a _ | i oe } ei . a _ oe ee oe oo Zo / . oo _ September 2006 www.TechnologyOneCorp.com
Slide 2: TechnologyOne Overview and agenda
» TechnologyOne Overview » 2006 Full Year Results =» Summary = Analysis = Significant Achievements # Strategy for Growth # Outlook and Challenges Connected Intelligence 2144 technologyone business software solutions
Slide 3: TechnologyOne develops, markets, sells, implements and supports enterprise applications
» TechnologyOne develops, markets, sells, implements and supports a range of enterprise applications: TechnologyOne Financials TechnologyOne Supply Chain TechnologyOne HR & Payroll TechnologyOne Works & Assets TechnologyOne Business Intelligence TechnologyOne Student Management TechnologyOne Propert
Slide 4: 2006 Full Year Results: Summary
» TechnologyOne Overview =» 2006 Full Year Results =» Summary = Analysis = Significant Achievements # Strategy for Growth # Outlook and Challenges Connected Intelligence 4a technologyone business software solutions
Slide 5: Record Revenue, up 21%
» Record Revenue, up 21% * To $65.2m, increase of $11.3m * Record Net Profit After Tax (NPAT), up 16% = To $12.3m, increase of $1.7m = Record Net Profit Before Tax (NPBT), up 13% = To $16.3m, increase of $1.8m = NPBT up 13% vs 16% NPAT = Tax benefits associated with the move to Tax Consolidation 5/4
Slide 6: Record R&D expenditure remained strong, up 24%
» Record R&D expenditure remained strong, up 24% = To $12.7m, an increase of $2.5m = Representing 19% of Revenue = R&D fully expensed as incurred » Expenses excluding R&D/Depreciation up 24% = To $36.4m, increase of $7.0m # Dividend of 3.41 cents fully franked, up 10% = Yield of 5% fully franked, ba
Slide 7: Revenue, Net Profit after Tax, R&D, Dividend per Share
i _ [ oo Revenue Net Profit after Tax $4000} 34000) 75,00 5 0 i 12250 5000 TOO 7,500 5000 2500 | Yexr Research and Development Dividend per Share Stoney Conte & 2 | el LITITITTT | BR sae8e¢e8 clLiLididl SESRRERRES 2282828 Year 7144 technologyone business software solutions Connected Intelligence
Slide 8: Return on Equity (ROE) of 32%
= Return on Equity (ROE) of 32% (vs 26% last year) =» Among top publicly listed companies in Australia =" 24% ROE over 5 years, makes us #35 of all publicly listed companies* « Adjusted ROE of 62% (adjusted for non working capital cash) = Strong balance sheet = Debt/Equity of 3% * Cash and Cash Equi
Slide 9: Full Year 2006 v 2005
2006 v 2005 Full Year 2006 v 2005 2006 2005 Variance Increase $ (000) $ (000) $ (000) %,) Revenue 65,242 53,850 11,392 21% Expenses 36,411 29,332 7,079 24% EBITDAR 28,831 24,518 4,313 18% R&D 12,675 10,220 2,455 24% EBITDA 16,156 44,298 1,858 13% Depreciation and Amortisation 1,142 1,154 (12) (1%) E
Slide 10: Licence fees up 47%
= Licence fees up 47% (vs 17% last year) « Annual licence and support revenue of $21.1m, up 23% (vs 19% last year) = Implementation and consulting services revenue of $18.1m up 22% (vs 11% last year) = 53% of our revenues now generated from existing clients 10/41 technologyone wa DOusiness software
Slide 11: TechnologyOne Financials licence fees up 44%
» TechnologyOne Financials licence fees up 44% (vs 7%) last year) = Involved in almost all deals » TechnologyOne Business Intelligence licence fees of $1.3m in first full year =» TechnologyOne Student Management licence fees up 151% 11/41 technologyone wa DOusiness software solutions Connected intel
Slide 12: North-West region performed strongly
= North-West region (QLD, SA, WA, TAS & NZ) performed strongly * Profit contribution up 114% to $5.5m, an increase of $2.9m « Licence fees up 97% to $9.2m, an increase of $4.5m * Consulting (Total) up 38% to $9.8m, an increase of $2.7m = New Zealand and Queensland very strong performance = Growing p
Slide 13: Strong results taking into consideration
« Strong results particularly taking into consideration: Project Services/Integration Services Revenue decrease of 6% to $7.2ma reduction of $437k TechnologyOne HR & Payroll had an R&D loss of $676k TechnologyOne Supply Chain had an R&D loss of $1.1m TechnologyOne Property licence fees down 30%, a d
Slide 14: 2006 Full Year Results: Significant Achievements
» TechnologyOne Overview » 2006 Full Year Results =» Summary = Analysis " Significant Achievements # Strategy for Growth # Outlook and Challenges Connected Intelligence 14/44 technologyone business software solutions
Slide 15: Continued Strong New Business
Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom Connected Intelligence 15/44 technologyone ig OUGINESS Software solutions
Slide 16: Licence fees to new customers up 58%
= Licence fees to new customers up 58% Strong indicator of the increasing success of our new Connected Intelligence (Ci) product line General Commercial - 38 new customers Local Government - 12 new councils, giving us 103 councils in total State & Federal Government - 5 new agencies Higher Education
Slide 17: Continued Strong R&D program
Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom Connected Intelligence 17144 technologyone ig OUGINESS Software solutions
Slide 18: Record R&D expenditure remained strong, up 24%
Record R&D expenditure remained strong, up 24% = To $12.7m, an increase of $2.5m = Representing 19% of revenue = R&D fully expensed as incurred =" Goal: Integrated enterprise software suite with ‘out of the box’ deep functionality based on the very latest technology and software design concepts: = F
Slide 19: TechnologyOne Financials Ci has been very successful
* TechnologyOne Financials Ci has been very successful to date: = Involved in all new deals « 150 sites committed; 120 sites now live =" Opened up opportunities in Tier One customer space *" R11.2 now available — critical for United Kingdom = R&D accelerated to bring remaining products onto the Ci p
Slide 20: R&D accelerated to develop new modules/functionality
» R&D accelerated to develop new modules/functionality in following areas: = TechnologyOne Works & Assets = TechnologyOne Business Intelligence » R&D planned to develop new modules/functionality in following areas over 2006/07: =" TechnologyOne Student Management = TechnologyOne Property 20/41 techn
Slide 21: TechnologyOne Business Intelligence significant new direction
« TechnologyOne Business Intelligence (Bl) — significant new direction = BI “out of the box” across all our products = Lower cost of ownership; TechnologyOne data aware; able to incorporate other non-TechnologyOne data sources = Objective: Consolidate our approach to BI and Corporate Performance Man
Slide 22: Continued Organisational Changes
Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom 22/41 technologyone ig OUGINESS Software solutions Connected Intelligence
Slide 23: Continue to evolve as our business grows rapidly
= Continue to evolve as our business grows rapidly = New executive team ‘bedded down’ and responsibilities reassigned » Awesome Software Initiative = Smaller, empowered ‘domain teams’ to increase ownership, commitment and innovation * Consolidated Financials, HR & Payroll, Supply Chain, Works & Asse
Slide 24: Exceptional Customer Service Initiative
= Exceptional Customer Service Initiative « All consulting now under one Operating Officer " Consistent business practices across all regions = Exceptional Sales and Marketing Initiative « All sales and marketing now under one Operating Officer « Marketing now aligned to sales « Identified and commi
Slide 25: Creation of AANZ
=" Creation of AANZ — Australia, New Zealand and Asia = Asia now reports into Australia Executive Team = Appointment of new Asian Manager to revisit our approach to Asia = Allows one senior executive to focus on developing our United Kingdom business 25/41 technologyone business software solutions C
Slide 26: TechnologyOne United Kingdom
Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom 26/41 technologyone ig OUGINESS Software solutions Connected Intelligence
Slide 27: First European office opened in Maidenhead United Kingdom
= First European office opened in Maidenhead United Kingdom " Opportunities for substantial growth — market estimated to be 3+ times size of Australian market = Country Manager appointed with extensive experience and contacts * Key Australian staff relocated into United Kingdom as culture and knowle
Slide 28: 2006 Full Year Results: Strategy for Growth
» TechnologyOne Overview » 2006 Full Year Results =» Summary = Analysis = Significant Achievements « Strategy for Growth # Outlook and Challenges Connected Intelligence 28/41 technologyone business software solutions
Slide 29: Focus on our seven key markets
= Focus on our seven key markets " Goal to achieve a dominant market presence in each market = Re-align sales, marketing, consulting, R&D and acquisitions/partnerships = Connected Intelligence (Ci) increasing our ‘win rate’ in our financial business " Accelerate R&D to move all products to Ci platfo
Slide 30: Higher Education strong pipeline of opportunities
= Higher Education — strong pipeline of opportunities now " TechnologyOne now ‘last man standing’ " Need to pro-actively manage opportunities and build infrastructure for growth = Good candidate for United Kingdom to continue growth in this sector = Extend product breadth to ‘add more value’ for our
Slide 31: Focus now on HR & Payroll to become best in class
= Focus now on HR & Payroll to become ‘best in class’ = Work with existing customers to achieve this = Significant revenue stream in medium term, as companies look for a totally integrated solution from one vendor # Will make this a highly profitable product line ($676k loss in 2006) = Local Governm
Slide 32: TechnologyOne Works & Assets
» TechnologyOne Works & Assets = New product, needs to be carefully managed = Extend product breadth rapidly over next few years = Potential new markets for TechnologyOne = Need to re-look at our strategies for: = TechnologyOne Supply Chain = TechnologyOne Project Services 32/44 technologyone busine
Slide 33: New Zealand continuing strong growth
= New Zealand — continuing strong growth = Continue to build our management team # Geographical expansion provide significant growth opportunity in medium term = Continue to invest in the UK + $1m loss for 2007 financial year + Medium term strong contributor to growth * Critical to get first 10 site
Slide 34: Significant opportunities in our existing customer base
« Significant opportunities in our existing customer base Powerful proposition: ‘provide customers with complete integrated solution from one company’ Cross-sell existing TechnologyOne products Acquisition/partnerships of other third party products Moving existing customers to our new Ci platform is
Slide 35: 2006 Full Year Results: Outlook and Focus
» TechnologyOne Overview » 2006 Full Year Results =» Summary = Analysis = Significant Achievements # Strategy for Growth # Outlook and Focus Connected Intelligence 35/44 technologyone business software solutions
Slide 36: Continuing strong growth
* Continuing strong growth Market conditions continue to improve generally Continuing strong growth in New Zealand and Australia Improvements in 2 largest states NSW and Victoria Increased win rate from our Connected Intelligence series Tier One opportunities Increased penetration of + TechnologyOne
Slide 37: Opportunities for continuing strong growth
" Opportunities for continuing strong growth Connected intelligence | L Financials - further Tier One opportunities in ANZ due to acceptance of our Ci platform Financials — growth in United Kingdom market Higher Education continuing strong market in ANZ Higher Education opportunities in United Kingd
Slide 38: Challenges: manage Ci migration and rollouts
Connected intelligence | L Manage the migration of all our customers to our new Ci platform Progressively develop and release other Ci products * TechnologyOne Property Ci * TechnologyOne Student Management Ci Consolidate TechnologyOne HR & Payroll position in the market Manage rollout of Technology
Slide 39: Slides available from web site
ao . See So. a2 7 oe. i 7. ae oe ( 7 ee ae a oo a - - These slides are now available from our web site: www. TechnologyOneCorp.com under the investor relations section. 39/41 technologyone business software solutions Connected Intelligence
Slide 40: Adrian Di Marco, Executive Chairman
LSS a ae : eee oe | i i ol i i‘ _ _ . - _ Le oe oe / [o | . oo a . L a . | . a — co oO i 2 - Adrian Di Marco Executive Chairman Adrian_DiMarco@TechnologyOneCorp.com oe _- u a _ | i oe } ei . a _ oe ee oe oo Zo / . oo _ September 2006 www.TechnologyOneCorp.com