Technology One Limited · ASX:TNE
Technology One — Shareholder Meeting (February 2020)
15 slides from Technology One's shareholder meeting presentation, Feb 25, 2020
Slide 1: CEO Presentation – FY19 Annual General Meeting
CEO Presentation FY19 Annual General Meeting Edward Chung Commercial in confidence Disclosure Statement TechnologyOne Ltd Annual General Meeting – 25 February 2020 Technology One Ltd (ASX: TNE) today conducted its Annual General Meeting at the Brisbane Convention & Exhibition Centre. These slides ha
Slide 2: Agenda
Agenda Agenda • Results & Achievements • • Results Outlook for Next Year • • Significant Long Term Achievements Outlook • Outlook for Next Year • Long Term Outlook Record FY19 Net Profit Before Tax of $76.4m 10 consecutive years of Record Profit 2
Slide 3: Strong results as we transitioned the business to SaaS accounting
Strong results as we transitioned the business to SaaS accounting Re-engineered our software Built the SaaS platform New systems, processes and policies Re-trained an entire organisation Transitioned from perpetual licence to recurring SaaS revenue Positions us for strong growth going forw
Slide 4: SaaS continues to drive our growth
SaaS continues to drive our growth Outlook for FY20 is strong Discussed in more detail later We continue to double in size every 4 to 5 years Reported Net Profit After Tax up 15% on FY18 reported results of $51.0m,,before introduction of AASB15 $58.5m $51.0m COMPOUND $44.5m GROWTH $41.3m $35.8m 14%
Slide 5: Profit margin to grow to 35+%
Our SaaS business is growing strongly SaaS ARR1 is growing at 44% per annum ARR UP Compelling value proposition of 44% TechnologyOne Enterprise SaaS $31.3m $101.7m One global code line Massive economies of scale Organic growth ARR UP 39% 8 active-active data centres $19.7m Defence-in-depth s
Slide 6: Cash Flow Generation Strong
Recurring Revenue is increasing as a percent of Revenue This is high quality revenue (% Revenue excl. Consulting) $600.0m 92% 93% 100% 89% 90% 87% 84% UP 20% 90% 81% $500.0m 77% 74% $500.0m 80% UP 20% UP 20% 70% $400.0m $417.3m UP 20% 60% $348.3m $300.0m UP 20% 50% UP 16% $290.7m UP 13% UP 20% 40% $
Slide 7: Balance Sheet Strong
Balance Sheet Strong Net Assets Up 38% $120.0m $29.4m $100.0m Net Assets: $106.9m up $29.4m (38%) $80.0m • Cash & Equivalents $105.0m, up 700k (1%) • Net Cash: 33.2cps vs 32.9cps $60.0m • We have no debt $40.0m $20.0m $77.5m $106.9m $0.0m 2018 2019 FY19 Profit Contribution APAC and UK APAC Profit of
Slide 8: Significant investment for future growth
On premise licence business is reducing over time allowing a smooth transition to SaaS SaaS Revenue vs Initial On Premise Licences Up 21% $460m $457m $410m Up 27% $360m $377m Up 31% $310m $296m $260m Up 38% $210m $226m Up 61% $160m Up 44% $164m $110m $102m approx approx approx approx approx $60m $40
Slide 9: Significant investment for future growth
Significant investment for future growth R&D investment of $60.1m 21% of Revenue $400+m invested in R&D over the last 10 years to maintain our leadership in innovation We provide 2 releases per year Delivered 2019B to the market, with 240 product enhancements across our enterprise suite Unde
Slide 10: FY19 Full Year Summary
2019 Awards 2019 Corporate Philanthropist 2019 WiT ICT Young of the year - Finalist Achiever Award 2019 Corporate Social Responsibility Award - Finalist FY19 Full Year Summary Record Record SaaS Is driving our Profit SaaS ARR business growth 1 15% growth 2 Top of guidance achieved UP 50% Comparable
Slide 11: Outlook for 2020 Year
Agenda Agenda • Results & Achievements • • Results Outlook for Next Year • • Significant Long Term Achievements Outlook • Outlook for Next Year • Long Term Outlook Outlook for 2020 Year Continuing strong growth SaaS is driving our continuing strong growth The enterprise software market is accele
Slide 12: Outlook for 2020 Year
Outlook for 2020 Year Full Year - Strong Profit growth to continue in 2020 We expect to see continuing strong growth in SaaS ARR and profit Our momentum remains the same, and we expect to continue to double in size once again in the next 4 to 5 years As we have seen in prior years the sales pi
Slide 13: Positioned well for the future
Positioned well for the future and to continue to double in size every 5 years SaaS continues to grow strongly at 40+% per annum Annual recurring revenues to increase to $500+m in FY24 Harvest substantial opportunities in our customer base Continuing growth in APAC Continuing growth in the
Slide 14: technologyone
technologyone transforming business, making life simple 14
Slide 15: Media enquiries
Media enquiries Darren Needham-Walker Cathy Hellyer Group Director, Marketing Executive Assistant P: +61 7 3167 7235 P: +61 7 3167 7996 M: +61 456 772 881 M: +61 437 286 014 E: Darren_NeedhamWalker@technologyonecorp.com E: Cathy_Hellyer@technologyonecorp.com About TechnologyOne TechnologyOne (ASX: T