Objective Corporation Limited · ASX:OCL
Objective — Investor Presentation (February 2023)
26 slides from Objective's investor presentation, Feb 16, 2023
Slide 1: Investor Presentation 1HY2023 Financial Results
Investor Presentation 1HY2023 Financial Results OBJECTIVE.COM
Slide 2: Outstanding digital government software driving stronger communities and nations
Outstanding digital government software driving stronger communities and nations
Slide 3: Agenda
AGENDA 01 Financial Summary 02 Objective Highlights 1HY2023 03 Business Line Review 04 Strategic Priorities Summary 3
Slide 4: 1HY2023 Financial Highlights
1HY2023 Financial Highlights ANNUALISED REVENUE RECURRING REVENUE EBITDA1 $55m $89m $13m + 4% vs. 1HY2022 + 12% vs. 1HY2022 -16% vs. 1HY2022 RESEARCH + NET PROFIT AFTER TAX1 DEVELOPMENT CASH $11m $13m $54m + 6% vs. 1HY2022 24% OF REVENUE +24% vs. 1HY2022 $44m 1 Excluding NZCC Settlement 4
Slide 5: 1HY2023 Strong Recurring Revenue
1HY2023 Strong as a Service 84% Recurring Revenue Growth 46% 18% 12% 5
Slide 6: Successful transition to subscription revenue
Successful transition to subscription revenue 107 95 70 78% 63 63 Recurring 62 55 49 50 50 78 70 53 43 43 39 31 34 25 27 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1HY23 Recurring Revenue Total Revenue Recurring Revenue -1HY23 Total Revenue – 1HY23 6
Slide 7: Consistent growth in YEARR
Consistent growth in YEARR 20% CAGR (FY17-FY22) 89 84 74 57 47 41 34 FY17 FY18 FY19 FY20 FY21 FY22 1HY23 YEARR 7
Slide 8: Significant R&D investment
Significant R&D investment 30 24% OF 1HY2023 REVENUE REINVESTED INTO R&D 30.0% 100% EXPENSED – NO CAPITALISATION 25 25.0% 20 20.0% 20.0% 15 15.0% 10 10.0% 5 5.0% 9.7 11.0 11.3 12.9 13.1 13.2 15.7 23.1 25.0 13.4 - 0.0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1HY23 1H FY23 R&D Annual R&D Annual R
Slide 9: Compounding R&D investment
Compounding R&D investment 234 220 1HY2023 195 RESEARCH + DEVELOPMENT 172 24% OF TOTAL REVENUE 130 143 157 117 106 95 85 76 67 58 48 39 30 25.0 23.1 21 15.7 15 9.6 9.7 11.0 11.3 12.9 13.1 13.2 13.4 8 11 5.7 8.7 8.8 9.4 9.3 9.1 9.4 1 3 5 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY1
Slide 10: Agenda
AGENDA 01 Financial Summary 02 Objective Highlights 1HY2023 03 Business Line Review 04 Strategic Priorities Summary 10
Slide 11: Objective Flywheel of Innovation
Objective Flywheel of Innovation 11
Slide 12: Product Releases
Product Releases Continual innovation across all products While new releases in FY2022 were dominated by new products: Objective Nexus, Objective Build and Objective 3Sixty, the flywheel of innovation through FY2023 is producing innovations across the entire product suite. Bringing completely new pr
Slide 13: Digital government investment
Digital government investment Increased activity throughout the public sector, our primary target market Analyst research has predicted strong growth in IT spending, particularly software; driven by key programs to progress the digital economy, strengthen national cyber response, adopt emerging tech
Slide 14: Security, always a priority
Security, always a priority At Objective, security not just a compliance program, it is a culture Our government customers and those in regulated industries are delivering important community and national outcomes, in doing so, they are responsible for managing some of the most confidential, sensiti
Slide 15: In-person connections
In-person connections Connecting with customers, colleagues and business partners in real life The first half of FY2023 saw the return of in-person events and meetings. The opportunity to reconnect with customers in real life has been highly valuable across all stages of our engagement with customer
Slide 16: Over 1000+ customer relationships
Over 1000+ customer relationships 20+ YEARS 10+ YEARS
Slide 17: Agenda
AGENDA 01 Financial Summary 02 Objective Highlights 1HY2023 03 Business Line Review 04 Strategic Priorities Summary 17
Slide 18: Business Lines
Business Lines Content & Process RegTech Planning & Building Empower people and Easy and efficient regulation for Streamline the building processes with information. government and financial assessment and consent process. services. 18
Slide 19: Content & Process
Content & Process 1HY2023 1HY2022 % CHANGE $38.1m $36.7m Accountability that builds 4% trust in government 1HY2023 Business Line highlights Empower people and processes with information. Go-live of Nexus at SAFECOM and Gov365 at City of Gold Coast Delivered ‘Collaborate Roadshow’ in-person custo
Slide 20: RegTech
RegTech 1HY2023 1HY2022 % CHANGE $10.4m $9.8m Protecting what matters 5% Easy and efficient regulation for government and financial services. 1HY2023 Business Line highlights Launched the New Zealand Police Arms Information System (AIS) as part of an ongoing program to deliver a nationwide firearm
Slide 21: Planning & Building
Planning & Building 1HY2023 1HY2022 % CHANGE $5.9m $6.1m Creating tomorrow’s 3% communities, today Streamline the building assessment and 1HY2023 Business Line highlights consent process. Objective Build Over 20 councils in New Zealand committing to implement the solution with an expectation tha
Slide 22: Agenda
AGENDA 01 Financial Summary 02 Objective Highlights 1HY2023 03 Business Line Review 04 Strategic Priorities Summary 22
Slide 23: Objective Strategic Pillars
Objective Strategic Pillars 1 2 3 4 Engineer Deliver more Grow our Family Attract New Fans #OUTSTANDING opportunities solutions for Customers 23
Slide 24: Outlook: Strategic priorities for FY2023
Outlook: Strategic priorities for FY2023 ARR FOCUS GEOGRAPHIC EXPANSION Continue to prioritise ARR growth over one- Leverage existing market presence in ANZ off revenue to deliver higher quality and more and UK to expand market opportunity for sustainable future earnings. Perpetual right to Planning
Slide 25: Digital Government. Stronger Communities.
Digital Government. Stronger Communities. We create software that makes a difference. Using Objective software, thousands of public sector organisations are shifting to being completely digital. Where our customers can work from anywhere; with access to information, governance guaranteed, and securi
Slide 26: OBJECTIVE.COM
OBJECTIVE.COM