Technology One Limited · ASX:TNE
Technology One — Shareholder Meeting (February 2019)
12 slides from Technology One's shareholder meeting presentation, Feb 26, 2019
Slide 1: CEO Address - 2018 Annual General Meeting
TechnologyOne SaaS Enterprise Software as a Service CEO Address 2018 Annual General Meeting Edward Chung Chief Executive Officer 26 February 2019 Commercial in confidence TechnologyOne SaaS Enterprise Software as a Service Agenda • Results • Adoption of AASB 15 • Outlook for New Year • Long Term Out
Slide 2: Total Annual Recurring Revenue recognised of $169m, up 22%
Total Annual Recurring Revenue recognised of $169m, up 22% 1 Recurring Revenue Recognised in FY18 under current Australian Accounting Standards We continue to double in size every 4 to 5 years Net Profit After Tax up 15% COMPOUND GROWTH 14% UP 15% $51.0m $23.6m $27.0m $31.0m $35.8m $41.3m $44.5m $51
Slide 3: Margin improved to 22%
Margin improved to 22% Net Profit Margin Before Tax 21% 21% 21% 22% 21% 19% 17% 17% 18% 17% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Margin improvement • Powered by TechnologyOne SaaS • Cost control Annual Licence continues to grow strongly: Up 16% 160 140 120 100 COMPOUND 80 GROWTH 60 14%
Slide 4: FY18 results highlights
UP 15% NPBT UP 22% ARR Recognized UP 41% 19 YEARS SaaS Platform ARR of consecutive record revenue $66.5m $169m $38m 16% 9% UP 14% 8% 14% Profitable since 1992 UP Annual Licence Fees $140m UP Revenue $299m Consulting Profit $6.0m UP Dividends 11.02 CPS UP Earnings Per Share 16.10 (CPS) UP 12% Cash &
Slide 5: SaaS - Incredible pace of innovation
SaaS - Incredible pace of innovation PostGreSQL High performance cache PostGIS Enhanced resilience Micro services Mass Production IRAP (Unclassified) Containers Multi tenant software 200x Auto Scale NZ CSB ISO 27017 SOC2 Self Healing ISO 27018 ISO 27001 SOC1 Hosted Cloud Powered by Citrix SaaS 1.0 S
Slide 6: SaaS Platform Profit of $7m, up 175%
SaaS Platform Profit of $7m, up 175% Previous year SaaS Platform profit was $2.5m. Original Forecast for 2018 full year was a profit of $5m. Annual Recurring SaaS Platform Fees Engine for significant profit growth in the coming years As previously stated focus has moved from ARR growth to profitable
Slide 7: Background to AASB 15
TechnologyOne SaaS Enterprise Software as a Service Agenda • Results • Adoption of AASB 15 • Outlook for New Year • Long Term Outlook Background to AASB 15 IFRS 15 is the international standard for “Revenue from Contracts with Customers”. In Australia it is referred to as AASB1 15. AASB 15 was issue
Slide 8: FY19 Adopt AASB15
FY19 Adopt AASB15 SaaS Accounting policies Stronger, better business Revenue recognized on a daily basis Free cashflow does not change Minimal impact on P&L Simpler revenue model Improved predictability of earnings H1:H2 skew reduces to 45%:55% over next 5 years1 Positions us for conti
Slide 9: ARR as % of total revenue
Illustrative models only Not to be used as guidance ARR is growing at approx. 20% per annum 84% 75% % of total Revenue FY19: ARR at start of year is $177m, is 75% of total Revenue FY22: ARR at start of year is $311m, is 85% of total Revenue TechnologyOne SaaS Enterprise Software as a Service Agenda
Slide 10: Outlook for 2019 Year
Outlook for 2019 Year Continuing strong growth • The enterprise software market continues to be resilient • TechnologyOne enterprise SaaS solution is driving our continuing success • In particular TechnologyOne markets have remained strong over many years: Local government, higher education, governm
Slide 11: Positioned well for the future and to continue to double in size every 5 years
TechnologyOne SaaS Enterprise Software as a Service Agenda • Results • Adoption of AASB 15 • Outlook for New Year • Long Term Outlook Positioned well for the future and to continue to double in size every 5 years. Substantial future growth in our existing customer base Continuing growth in APAC
Slide 12: Play video
technologyone Transforming business, making life simple 12