Slide 1: Presentation by Executive Chairman (ASX cover letter)
Commercial in Confidence For personal use only 22 November 2016 Company Announcements Officer Australian Securities Exchange Limited Exchange Centre, 20 Bridge Street SYDNEY NSW 2000 BY ELECTRONIC LODGEMENT TECHNOLOGY ONE LIMITED – PRESENTATION BY EXECUTIVE CHAIRMAN Please find attached a copy of th
Slide 2: 2016 Full Year Results
11/22/2016 For personal use only 2016 Full Year Results Full year ending 30 September 2016 Adrian Di Marco, Executive Chairman 22 Nov 2016 Commercial in confidence Commercial in confidence Final vsn Disclosure Statement Technology One Ltd Full Year Presentation – 22 November 2016 Technology One Ltd
Slide 3: Agenda
11/22/2016 For personal use only Agenda • Results • Significant Achievements • Outlook for New Year • Long Term Outlook Appendix • TechnologyOne Overview Our cloud first, mobile first strategy is driving our strong continuing results 2
Slide 4: Results Summary
11/22/2016 For personal use only Results Summary FY16 FY15 Variance % Revenue $249.0m $218.7m 14% Initial Licence Fees $56.2m $49.3m 14% Total Consulting2 $71.1m $65.6m 8% Annual Licence Fees $108.5m $95.3m 14% Cloud Service Fees $10.1m $4.1m 145% Expenses $195.8m $172.2m 14% R&D Expenses incl. Acqu
Slide 5: Margin Analysis
11/22/2016 Margin Analysis For personal use only TechnologyOne Cloud made a $2.2m loss The TechnologyOne Cloud continued to impact our margins significantly Company FY16 Company Cloud Excl. Cloud Revenue $249.0m $10.1m $238.9m Profit $53.2m ($2.2m) $55.4m Margin % 21% (22%) 23% FY15 Company Cloud Ex
Slide 6: Net Profit After Tax up 16%
11/22/2016 We continue to double in For personal use only Net Profit After Tax up 16% size every 4 to 5 years 50 UP 16%, #039;m $41.3M 40 Over the last seven years 30 Compound Growth 15% compound growth in NPAT 20 has been 15% per annum. 10 0 2010 2011 2012 2013 2014 2015 2016 Top End of Full Year Perc
Slide 7: Significant investments; Total Dividend Up 8%
11/22/2016 For personal use only Significant investments TechOne Cloud $2.2m loss ($2.5m loss in 2015 ) R&D of $46m, fully expensed1 ($41m in 2015) Ci - existing very successful enterprise software suite Ci Anywhere - our new generation product for smart mobile devices 1Fully expensed in the yea
Slide 8: Total Expenses Up 14%
11/22/2016 Total Expenses Up 14% ($23.5m) versus Revenue up 14% For personal use only Total Expenses 250 UP 14%, $195.8M UP 11%, $172.2M 200 150 100 50 0 2014 2015 2016 Total Expenses above guidance of 11% growth Total Expenses Up 14% ($23.5m) UP 14%, 8%, $195.8M 200 $13.8M 195 2%, 1%, $4.4M 190 3%,
Slide 9: Total R&D Expenses up 12%
11/22/2016 Total R&D Expenses up 12% fully expensed For personal use only R&D excl. Acquisitions Total R&D incl. Acquisitions UP 12%, UP 9%, $44.3M $46.0M 50 50 45 Compound annual growth 7% 45 40 Compound Growth 8% 40 35 35 30 30 #039;m 25 #039;m 25 20 20 15 15 10 10 5 5 0 0 2012 2013 2014 2015 2016 2012
Slide 10: Cash Flow
11/22/2016 Cash Flow Sep-16 $ '000 Sep-15 $ '000 Var % Operating Cash Flow ($43.7m), has improved NPBT 53,240 46,494 6,746 15% For personal use only substantially over the full year Depreciation & Amortisation 3,924 4,157 (233) (6%) Change in working Capital • Up $6.1m, 16% from $37.6m Sept 2015 (In
Slide 11: Results – Key Metrics
11/22/2016 Results – Key Metrics For personal use only Full Year 2016 v Full Year 2015 2016 2015 Variance % Full Year 2016 v Full Year 2015 2016 2015 Variance % EPS (cents) 13.26 11.57 15% ROE Return on equity 31% 30% Dividends (cents) Adjusted return on equity1 61% 63% Standard 7.45 6.78 10% Balanc
Slide 12: New Customers for 2016 (64)
11/22/2016 New Customers for 2016 (64) Alpine Energy Limited Department of Finance Ngati Hine Trust Board University of Exeter For personal use only Anglicare WA Department of Health NT Ongo Partnership Ltd VicSuper Pty Ltd Arvida Limited Ealing, Hammersmith & West London College Parkes Shire Counci
Slide 13: Cloud Service Fees growing strongly
11/22/2016 Cloud Service Fees1 growing strongly: $16m ACV, up 100% Target for Dec 2017 is: For personal use only $32M 35.0 UP 100% ($16M) $32m ACV 30.0 Strong momentum to 25.0 $20.2M continue in future years UP 100% ($10.1M) FY15 $16M 20.0 UP 100%, ($8M) #039;m 15.0 $10.1M FY16 Target for Dec 2016 was:
Slide 14: Total Consulting Revenue up 8%
11/22/2016 Total Consulting Revenue up 8% ($5.5m) For personal use only Total Consulting UP 8%, 80 $71.1M 70 Compound Growth 10% 60 50 #039;m 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • Compound growth over the last 10 years is 10% • Profit contribution down 6% ($596k) • Instigate
Slide 15: Profit By Segment Analysis
11/22/2016 Profit By Segment Analysis $21.6m, Up 22% ($3.9m) For personal use only Headcount 369, Up 18% 25.0 $15.5m, Inline 20.0 Headcount 123, Up 9% $9.7m, Down 6% ($596k) 15.0 $8.6m, Up 55% ($3m) Headcount 343, Up 9% FY14 Headcount 182, Up 11% FY15 #039;m 10.0 ($2.2m), Improved 12% ($297k) FY16 5.0
Slide 16: Agenda – Significant Achievements
11/22/2016 For personal use only Agenda • Results • Significant Achievements • Outlook for New Year • Long Term Outlook Appendix • TechnologyOne Overview TechnologyOne Cloud Ci Anywhere Well positioned for the digital revolution 15
Slide 17: TechnologyOne Cloud awards
11/22/2016 2 For personal use only Technology Partner of the Year ERP Cloud Product of the Year Global Best SaaS Product for Not For Profit or Education Australian Government Shared Services for SaaS TechnologyOne Cloud Enterprise Software as a Service 150+ customers on TechnologyOne cloud 16
Slide 18: TechnologyOne Cloud is evolving fast
11/22/2016 Hosting TechOne Cloud +3 years Providers today For personal use only 1.0 2.0 3.0 4.0 5.0 6.0 ….. 12.0 Citrix Active AutoScale Browser Mass Prodn Most Active Self Heal No Citrix Multi Tenant Trusted Cloud TechnologyOne Cloud is evolving fast ISO/IEC 27001 ISO/IEC 27017 ISO/IEC 27018 SOC 1
Slide 19: TechnologyOne Cloud Growth To 2022
11/22/2016 For personal use only TechnologyOne Cloud Enterprise software as a service TechnologyOne Cloud 5.0 introduced the start of our mass production Software as a Service offering We have just released TechnologyOne Cloud 6.0, which continues to deliver further economies of scale, and enhan
Slide 20: Ci Anywhere
11/22/2016 For personal use only Absolutely essential in a digital world Ci Anywhere Any device. Any where. Any time. Enterprise software, incredibly simple Flow across many devices in the course of a day We are delivering our entire enterprise suite on mobile devices Enterprise Software intelligent
Slide 21: Ci Anywhere; Evolve Customer Conference
11/22/2016 For personal use only Ci Anywhere Enterprise software, incredibly simple Any device. Any where. Any time. 2016B now released to early adopters 2017A under development for Mid 2017 Deliver all remaining Ci Anywhere functionality late 2017 calendar year Significant competitive advan
Slide 22: Consulting Review; United Kingdom
11/22/2016 Consulting Review For personal use only Separation into 2 focused / separate business units to deliver excellence Consulting New Customers vs Consulting Existing Customers Different culture, systems, processes Consulting New Project focused, new business focused, ‘on time and to
Slide 23: New UK Customers for 2016 (13)
11/22/2016 New UK Customers for 2016 (13) For personal use only Cambridge City Council CIPFA Business Limited Ealing, Hammersmith & West London College Equity Housing Group Glasgow Clyde College Huntingdonshire District Council Leicester City Council Live Borders Limited Ongo Partnership Ltd South C
Slide 24: UK Licence Fee Growth to 2022
11/22/2016 UK Licence Fee Growth to 2022 For personal use only #039;m Licence Fees 35 $30.4M, UP 50% Compound Growth 63% 30 25 $20.3M, UP 50% 20 $13.5M, 15 UP 50% $9.0M, UP 50% 10 $6.0M, UP 50% $4.0M, $3.0M, UP 33% 5 $0.6M, $1.4M, UP 114% UP 133% UP 111% 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 $
Slide 25: Outlook for 2017 Year
11/22/2016 For personal use only Agenda • Results • Significant Achievements • Outlook for New Year • Long Term Outlook Appendix • TechnologyOne Overview Outlook for 2017 Year Continuing strong growth • The enterprise software markets has been one of the most resilient sectors of the IT industry in
Slide 26: Outlook for 2017 Year
11/22/2016 For personal use only Outlook for 2017 Year Full Year - Strong Profit growth to once again continue in 2017 We expect to see strong continuing growth in licence fees, revenue and profit This year the sales pipeline is once again weighted strongly to the second half, and we have the ad
Slide 27: Long Term Outlook
11/22/2016 For personal use only Agenda • Results • Significant Achievements • Outlook for New Year • Long Term Outlook Appendix • Technology One Overview Temporary hiatus due to Cloud loss of $2.2m on revenues of $10.1m Excluding Cloud business, margin is 23%. Cloud becomes profitable 2017 financia
Slide 28: Controlled R&D Growth
11/22/2016 Controlled R&D Growth 2011 Model for R&D Expense Growth (excluding acquisitions) For personal use only 70 #039;m Historical Compound 2015 growth was 7% 2016 growth was 9% Growth 16% $67m 60 Model Compound 2014 growth was 6% Growth 8% 2013 growth was 6% 2011 Model, shows 50 savings of $20m/ye
Slide 29: TechnologyOne Cloud and UK Growth To 2022
11/22/2016 TechnologyOne Cloud Growth To 2022 For personal use only $143m / year (recurring) in 2022 #039;m Annual Contract Value 160 $143.0M Compound Growth 69% Up 26% 140 $113.9M Up 15% 120 $99.0M Up 25% 100 $79.2M Up 50% 80 $52.8M 60 Up 65% $32.0M 40 Up 100% $8.0M $16.0M Up 264% Up 100% 20 0 FY14 FY
Slide 30: Product Maturity; Clear strategy for long term growth
11/22/2016 Product Maturity For personal use only Tipping point when Profit exceeds Licence fees 20 #039;m Contribute $16+m of additional Profit per year in 5+ years time 15 10 5 0 (5) CPM Financials & Student Asset Management Enterprise Content HR/Payroll Property Stakeholder Spatial Supply Chain Mana
Slide 31: Positioned well for the future
11/22/2016 Positioned well For personal use only for the future… Agenda • Results • Significant Achievements • Outlook for New Year • Long Term Outlook Appendix • Technology One Overview 30
Slide 32: Australia's largest enterprise software company
11/22/2016 Australia’s largest enterprise software company For personal use only Continually profitable Invest$46m+ For over 25 years Back into R&D Profit Formed in $53m Largest 1987 R&D centre Revenue 1000+ in Australia $249m employees 300+ developers Cash $83m 1000+ Market Capitalisation Corporate
Slide 33: Financially Very Strong; Historical Performance
11/22/2016 Financially Very Strong For personal use only • Cash and Equivalents $82.6m • Return on Equity 30+% • Adjusted Return on Equity1 61% • Debt/Equity 0.02% • Interest Cover 683 • Continually paid dividends since 1996 (21 years) • Continually profitable since 1992 (25 years) As at 30th Sept 2
Slide 34: The Competitive Landscape
11/22/2016 For personal use only Technology One .. Additional Information The Competitive Landscape ORACLE SAP New expanding market coverage Workday $1,000m Current market coverage TechnologyOne Microsoft Business Solutions $100m SAP/Business One NetSuite Infor (Sun Systems) $30m Xero Reckon CLIENT
Slide 35: What makes us unique: Our enterprise vision
11/22/2016 For personal use only What makes us unique What makes us unique… Our enterprise vision We are one of only a few global enterprise vendors • Suite of 14 products • Deeply integrated • Best of Breed functionality • Common platform • Consistent user interface The power of a single, integrate
Slide 36: What makes us unique: The power of one
11/22/2016 For personal use only What makes us unique What makes us unique… The power of one We do not use implementation partners or resellers We take complete responsibility for building, marketing, selling, implementing, supporting and running our enterprise solution for each customer to guarante
Slide 37: We focus on eight key markets
11/22/2016 What makes us unique… For personal use only We focus on eight key markets… • Deep understanding and engagement in our markets • Deeply integrated preconfigured solutions • Proven practice • Streamlined implementations • Reduce time, cost and risk We sell to asset and service intensive org
Slide 38: What makes us unique: The power of evolution
11/22/2016 For personal use only What makes us unique What makes us unique… The power of evolution Substantial investment into R&D each year • New releases encompass new technologies, concepts and innovations • Configuration and not customisation Green screen Client server Web based Cloud computing
Slide 39: TechnologyOne Cloud
11/22/2016 TechnologyOne Cloud For personal use only Enterprise software as a service • We run our own enterprise software through the cloud • We take responsibility to provide a simple, cost effective and highly elastic model of computing • Unique mass production model delivers economies of scale a
Slide 40: TechnologyOne SaaS mass production
11/22/2016 Economy of scale TechnologyOne SaaS - Massively scalable, Highly efficient , Cost effective Highly resilient & fault tolerant Mass Production For personal use only Elastic - add capacity dynamically Significant cost savings Future proof - We invest millions annually to make our pr
Slide 41: Ci Anywhere
11/22/2016 Ci Anywhere For personal use only Enterprise software, incredibly simple • Embraces smart mobile devices including iPad, iPhone and Android • Allows users to flow across any and all devices during the course of their day • Consumer concepts deliver powerful enterprise software that is inc
Slide 42: Other Facts
11/22/2016 Other Facts For personal use only Diversity of revenue streams from multiple: • Products 14 • Vertical markets 8 • Geographies 12 - All states of Australia, New Zealand, South Pacific, Asia and UK Strong, very loyal blue chip customer base • We provide a mission critical solution – ‘stick
Slide 43: Robust Revenue Model
11/22/2016 Robust Revenue Model For personal use only Initial Buy Based on: No of Users, Initial Licence Implementation Service Annual Licence Annual Licence Annual Licence …. Products & Modules Buy Addn Users Initial Licence Annual Licence Annual Licence Annual Licence …. Additional Fee Buy Addn Mo
Slide 44: Our Vision
11/22/2016 Our Vision Clear and focused vision… Transforming business, For personal use only making life simple 43