Slide 1: 2019 Half Year Results
2019 Half Year Results Ended 31 March 2019 21 May 2019 CommercialCommercial in confidence in confidence Disclosure Statement TechnologyOne Ltd Half Year Presentation – 21 May 2019 TechnologyOne Ltd (ASX: TNE) today conducted a series of presentations relating to its 2019 Half Year results. These sli
Slide 2: Agenda
Agenda ➢Results • Significant Achievements • Outlook for the Full Year • Long Term Outlook • Summary Record H1 Net Profit Before Tax of $24.5m 2
Slide 3: TechnologyOne is a successful SaaS company
TechnologyOne is a successful SaaS company Our SaaS business continues to grow strongly SaaS Fees Recognised $37.5m, up 42% SaaS Annual Contract Value (ACV) $85.8m up 45% 3
Slide 4: Dividend up 10%
Dividend up 10% Given our confidence for the full year, Dividend last five years H1 dividend increased Compound growth 10% 1 • 3.15 cps, up 10% (75% franked ) 3.15 • Payout ratio of 56% 2.60 2.86 2.36 2.15 • Board to consider a special dividend at year end FY15 FY16 FY17 FY18 FY19 Notes: • 1 Dividen
Slide 5: "Comparable" is how we measure the real performance of the business
“Comparable” is how we measure the real performance of the business FY18 Comparable: - Applies AASB15 to FY18 results - Includes non-IFRS proforma Capitalised Development to FY18 This sets a much higher bar to compare H1 FY19 against Results Summary This is how we measure our business Comparable Rep
Slide 6: Outlook for the full year is strong
Outlook for the full year is strong Discussed later in more detail Our SaaS business is growing quickly Forecast SaaS ACV is growing at 45% per annum Forecast FY19 up 45% All new business driven by SaaS ACV UP 45% Approaching 400 SaaS customers $33.2M $106.9M ✓ One global code line ✓ Massive economi
Slide 7: Forecast Total ACV and Cash Flow
Forecast Total ACV1 Forecast FY19 up 20% $213M Up 20% $177M UP 15% $154M UP 21% $127M UP 18% $108M $188M $164M UP 15% $138M UP 19% $114M UP 21% $95M UP 21% FY15 FY16 FY17 FY18 FY19 H1 H2 Note: ACV is as at the end of each half year, H1 and H2 1 Total ACV = SaaS ACV + On Premise Annual Licence ACV Ca
Slide 8: Balance Sheet, Statutory and Profit by Segment Analysis
Mar-19 Mar-18 Var Var Balance Sheet, Statutory* #039;000 #039;000 #039;000 % Cash & cash equivalents 68,177 57,530 10,647 19% Prepaid expenses 10,206 9,997 209 2% Trade and other receivables1 50,474 66,956 (16,482) (25%) Cash & Equivalents $68.2m, up $10.6m, 19% Other current assets Current tax assets 823 3,
Slide 9: Results Analysis and Key Metrics, FY18 Comparable
Results Analysis and Key Metrics, FY18 Comparable H1 2019 v H1 2018 Comparable 2019 2018 Var% H1 2019 v H1 2018 Comparable 2019 2018 Var% Revenue excl interest 128,847 123,244 5% EPS (cents) 5.65 5.48 3% Expenses (excl R&D, interest, D & A) 89,007 84,555 (5%) Dividends (cents) EBITDAR 39,840 38,689
Slide 10: Vertical Market Analysis
Vertical Market Analysis 99% customer retention ACV of $188m across all markets Local Government Other* $65.3m, 35% $13.3m, 7% Asset & Project Intensive $15.4m, 8% Our APAC market penetration in any single vertical does not exceed 15%. Significant room to grow in future years. Health & Communities E
Slide 11: Significant investment for future growth
Significant investment for future growth R&D investment of $27.8m1, 22% of Revenue 1R&D expenditure before capitalisation R&D Expenditure up 7% Tracking to full year target of 8% $50.0M 40% $45.0M 30% $40.0M 21% 22% 22% 22% 20% ✓ $200m invested in R&D over the last 20% 5 years to maintain our leader
Slide 12: SaaS - Incredible pace of innovation
SaaS - Incredible pace of innovation Digital Experience Apps Artificial Intelligence Machine Learning Capital Planning & HR Recruitment Delivery Strategic Asset Sourcing Management 212 new features Student self-service Organisation Micro services architecture Enterprise Business 642 new features hie
Slide 13: United Kingdom
United Kingdom Significant investment for future growth UK loss $0.9m vs loss $3.2m restated pcp • Consulting loss of $0.7m vs loss of $2.5m pcp. This has turned around substantially • Customer First Strategy • Red projects have been addressed and majority of customers live • Reference-ability has i
Slide 14: Agenda
Agenda ✓ Results ✓ Significant Achievements ➢Outlook for the Full Year • Long Term Outlook • Summary FY19 is a transition year to AASB15 The successful transition will be a significant achievement for TechnologyOne 14
Slide 15: FY18 Full Year Restatement
We have restated FY18 on a Statutory AASB15 basis FY18 Full Year Restatement AASB15 Mandatory reporting This is not how we measure our Statutory reporting business because it sets too low a bar Eg restated FY18 profit of only $24.8m As Reported1 Restated2 • $28.7m (44% of total) of Initial Licence f
Slide 16: FY18 Full Year Restatement
We have also restated FY18 on a Comparable basis Comparable basis: - Applies AASB15 to FY18 - Includes non-IFRS proforma Capitalised Development to FY18 This sets a much higher bar FY18 Full Year Restatement This is how we measure our business Sets a much higher bar. Comparable Reporting Eg Restated
Slide 17: Outlook for 2019 Full Year
Outlook for 2019 Full Year We expect to see strong continuing growth in 2019 Net Profit Before Tax of $71.6m to $76.3m Up 189% to 208% on FY18 Statutory profit1 of $24.8m Up 41% to 50% on FY18 Comparable profit2 of $50.8m 1AASB 15 has been applied to restate FY18. As a SaaS company development costs
Slide 18: Outlook for 2019 Full Year Assumptions
Outlook for 2019 Full Year Assumptions • The pipeline remains strong for the second half • SaaS ACV of $107m, up 45% (vs $73.7m pcp) • 1 Total ACV of $213m, up 20% (vs $177m pcp) • Total Consulting Profit of $10m, up 66% (vs $6m pcp) • Total Expenses up 7% for the Full Year (vs up 5% at the end of H
Slide 19: Foundations for long term growth
Foundations for long term growth 14 Licensable products1 6 Vertical markets Diversified geographies2 Over 325 licensable modules Asset Intensive. Other. 2% International. 3% Spatial. 3% 5% ECM. 7% CPM (EB, PP, New Zealand. 12% BI). 21% Health Services. 11% HRP. 10% Diversified Stakeholder revenue BP
Slide 20: Continuing growth in APAC and the UK
Continuing growth in Our APAC market penetration in any APAC single vertical does not exceed 15%. Significant room to grow in future years ✓ Local Government ✓ Education ✓ Government ✓ Health & Community Services ✓ Asset & Project Intensive Industries ✓ Financial Services & Corporates Continuing gro
Slide 21: Our SaaS business is growing quickly
Our SaaS business is growing quickly Forecast SaaS ACV is growing at 45% per annum Forecast FY19 up 45% All new business driven by SaaS ACV UP 45% Approaching 400 SaaS customers $33.2M $106.9M ✓ One global code line ✓ Massive economies of scale ✓ Multiple active-active data centres ACV UP 45% ✓ Defe
Slide 22: Positioned well for the future and to continue to double in size
Profit margin to continue to improve to 25% in the next few years, and then continue to 30% Focus is to substantially improve PBT margins Net Profit Margin Before Tax 21% 22% 21% 21% 21% 19% 17% 17% 18% 17% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Focus is to substantially improve PBT margi
Slide 23: H1 FY19 Summary
Agenda ✓ Results ✓ Significant Achievements ✓ Outlook for the Full Year ✓ Long Term Outlook ➢Summary H1 FY19 Summary ✓ Record profit, revenue, SaaS Fees, SaaS ACV ✓ Profit $24.5m, up 130% on FY18 statutory profit ✓ Profit $24.5m, up 4% on FY18 comparable profit ✓ SaaS Fees Recognised of $37.5m, up 4
Slide 24: technologyone
technologyone Transforming business, making life simple 24