Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2005)
22 slides from Integrated Research's shareholder meeting presentation, Nov 15, 2005
Slide 1: Systems
systems a Ee FFE
Slide 2: ems
ems
Slide 3: ems
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Slide 4: FY 2005 Performance
> FY 2005 Performance AU$ (000) 2005 2004 % Revenue from Licence Fees 17,726 15,842 T 12% Revenue from Maintenance 14,877 13,712 T 9% NPAT 6,199 4,455 TT 39% Adjusted for FDT reduction 6,199 5,261 T 18%
Slide 5: Other Key Metrics
>» Other Key Metrics Basic EPS Dividend per share Net Cash Flow from Operations (A$000) Current Ratio R&D as percent of revenue RONA 2005 3.75¢ 2.50¢ $5,733 2.14 18% 28.7% 2004 % 270¢ HW 30% 1.75¢ BF 43% $4,178 ff 37% 1.79 ff 20%
Slide 6: Results FY 2003 — FY 2005
Results FY 2003 — FY 2005 > AS Millions Revenue New Sales PAT $35.0 200 $7.0 18.0 $30.0 4 16.04 $25.0 4 14.0 4 $20.0 4 1204 10.0 $15.0 4 80 $10.04 0 40 $5.0 4 20 $0.0 4 0.0 2003 2004 2005 2003 2004 2005 2003 2004 2005
Slide 7: New Sales by Region
New Sales by Region US$ Millions (Exc Europe: in GBP) Americas. Asia Pacific Europe US$ uss GBP 8.0 40 2.0 2003 2004 2005 2003 2004 2008 2003 2004 2005
Slide 8: Ten-Year Revenue History (A$)
10 Year Revenue History | A$ Millions | Ten-year Revenue History - A$ Millions Moo $36.0 D Other Revenue $30.0 Licence Fees @ Maintenance $25.0 200 $15.0 $10.0 . i. i $0.0 1996 1997 1998 1999 2001 2003 2004 2008
Slide 9: Ten-Year Revenue History (US$)
10 Year Revenue History US$ Millions US$ Millions O Other Revenue @ Licence Fees @ Maintenance | 1996 1997 1968 1999, 2000 2001 2002 2003 2004 2005
Slide 10: Dividends (AU$000)
> Dividends (AU$000) Balance of dividend franking tax benefit account at June 2005. $1,516 Reduction of FDT offset, subject to review. $806 Business/dividend model going forward: Dividend policy is to pay dividend in range of 40% to 60% of PAT. Australian taxable income is expected to be in excess o
Slide 11: IFRS
> IFRS ¢ Changes to accounting policies implemented from July 2005: - Inclusion of provision for lease make good costs - Exclusion of research costs from capitalised R&D - Recognising fair value of options as an expense - Foreign exchange gains or losses on translation of foreign subsidiaries recogn
Slide 12: Restatements for IFRS Comparisons
>» Restatements for IFRS Comparisons AU$ 000 Net Equity NetEquity 2004/05 June 2004 June 2005 Earnings _ Australian GAAP 18,644 21,574 6,199 Lease make good -170 -219 -49 - Revenue recognition -895 -788 107 _~ Tax 341 320 -21 Fair value of options -42 -239 -197 Translation of foreign operations 242
Slide 13: Systems
systems a Ee FFE
Slide 14: HP NonStop Business
> HP NonStop Business ¢ Continued single digit growth business partner « 95% maintenance renewals ° 10 year license renewals <>» HP OPENVIEW e Upgrades and new Integrity servers PARTNER « PROGNOSIS add-on products Qa « Continued R&D investment HP OpenView
Slide 15: Windows, UNIX, Linux
» Windows, UNIX, Linux ¢ Cross sell to existing customers - Existing WUL customers expanding internal use - WUL sales to NonStop customers * Targeted solution products o PROGNOSIS for Web Applications oe PROGNOSIS for Terminal Servers ¢ Apply to other IP telephony-like markets - Current Cisco IP tel
Slide 16: IP telephony: VoIP deployments
> IP telephony: VoIP deployments Cisco SYSTEMS Technatogy Developer Partner je Cisco still market leader - Large enterprise deployments uli Cisco. ; . Compatible Increasing global spending for VoIP - US$17.2B 2006 to US$39.1B 2007 (Jay Lassman, Gartner June 2005) “It is worth noting that from 2004-2
Slide 17: IP telephony: VoIP deployments
> IP telephony: VoIP deployments * Our product has sustainable differentiation - Scalability; inherent in core design - Technical superiority proven in many customer labs “PROGNOSIS demonstrates a measurable advantage over other solutions. It presents a fault-tolerant, high-availability management s
Slide 18: Growth Strategy
> Growth Strategy e Leverage our worldwide customer base - 35% of all Fortune 1,000 companies - 58 new customers in 2005 ° Leverage our partners (sample list) - UK-—Prime Business Solutions & Equant - France - France Telecom (Equant) - Germany - T-Systems (Deutsche Telecom) - USA - BellSouth, AT&T,
Slide 19: Growth Strategy
> Growth Strategy ¢ Expand our own sales capability - Germany now operational - More IP telephony sales people in each region - Focus on our “Sweet Spot” ° Invest in adjacent products - Build (more R&D) - Buy, if a good fit - Other IP telephony environments, extend our current Windows, UNIX, Linux p
Slide 20: Creating value
> Creating value e Leverage our business model - Revenue growth yields significant earnings growth - Sustainable earnings growth is our focus ° Keep revenue sources dispersed - No one customer is more than 7% revenue - Investin ALL regions for growth ¢ Invest now for future growth - Sales, Marketing
Slide 21: Our Revenue Profile
> Our Revenue Profile ° 48% of revenue recurring * 52% new license revenue - 40% of new license revenue last 2 weeks in each quarter - 31 New IPTM customers in 2005 o 5 customers ~ 85% of 2005 new license revenue - Similar characteristics to NonStop business
Slide 22: Summary
% % ® » > Summary IP telephony (VoIP) is our best growth opportunity today - Windows, UNIX and Linux products The traditional business is healthy We are changing where we need to capitalise on our opportunities - Refining our go to market strategy - People and process We are retaining what we have d
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