Technology One Limited · ASX:TNE

Technology One — FY2013 Earnings Presentation

26 slides from Technology One's earnings presentation, Nov 25, 2013

  1. Slide 1: 2013 Full Year Results Presentation

    For personal use only 2013 Full Year Results Presentation September 30th 2013 Adrian Di Marco Adrian_Dimarco@TechnologyOneCorp.com *FINAL November 2013 Commercial in confidence Disclosure Statement Technology One Ltd Full Year Presentation - 25 Nov 2013 Technology One Ltd (ASX: TNE) today conducted

  2. Slide 2: TechnologyOne Overview

    TechnologyOne Overview For personal use only Formed in Employees 300+ developers 800+ Revenue 1987 800+ R&D in centre corporations, government and statutory authorities $180+m One of Australia’s most successful software companies Continually Doubles Invest20% 14 international offices in profitable i

  3. Slide 3: TechnologyOne Overview: Seven Key Markets

    TechnologyOne Overview For personal use only We focus on seven key markets...  Deep understanding and engagement in our markets We sell to asset and  Deeply integrated preconfigured solutions service intensive  Proven practice organisations.  Streamlined implementations We do not service  Reduc

  4. Slide 4: TechnologyOne Overview

    TechnologyOne Overview For personal use only  One of Australia’s largest software houses, specialising in the research, development and commercialisation of enterprise software – invest $35+m in R&D per year  Connected Intelligence (Ci) is our current generation enterprise suite  Next generation

  5. Slide 5: Agenda and Results Summary

    Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year  Long Term Outlook Results Summary FY13 FY12 Variance % Profit Profit After Tax** $27.0m $23.6 m 15% Profit Before Tax $35.1 m $30.3 m 16% Revenue $180.6 m $169.1 m 7% Initial Licence Fees $37.1m $35.4 m 5% Co

  6. Slide 6: Guidance and Results Highlights

    Guidance For personal use only Full Year Guidance 40 35.1m, up 16% 35 30 Compound Growth 13% Continuing profit growth of 10% to 15% 25  Profit Before Tax up 16% #039;m 20 27m, up 15% 15  Profit After Tax up 15% Compound Growth 10 14% 5 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Profit B

  7. Slide 7: Balance Sheet

    Balance Sheet For personal use only Strong balance sheet Sep-13 Sep-12 Var % #039;000 #039;000 #039;000  Cash & Cash Equivalents $65.4m (up $14.3m) Cash & Available-for-sale financial  Net Cash*: 19.5c/s (vs.13.7c/s) assets 65,397 51,133 14,263 28% Trade and other receivables 30,509 27,455 3,054 11%  Debt

  8. Slide 8: Dividend

    Dividend For personal use only Dividends for this year 6.00 Dividend up 10% Compound Growth 8% 5.00  Half 1 1.77 cps up 10% (paid) 4.00 Cents per share  Half 2 3.83 cps up 10% 3.00 (proposed) 2.00  Sub Total 5.60 cps up 10% 1.00 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013  Special Div

  9. Slide 9: 2013 Full Year Results – Key Metrics

    2013 Full Year Results – Key Metrics For personal use only Full Year 2013 v Full Year 2012 2013 2012 Variance % Full Year 2013 v Full Year 2012 2013 2012 Variance % EPS (cents) 8.8 7.73 14% ROE Return on equity 31% 32% Dividends (cents) Standard 5.60 5.09 10% Adjusted return on equity * 70+% 70+% Sp

  10. Slide 10: Historical Performance

    Historical Performance For personal use only Key metrics over last 15 years … 90 80  Revenue - 17% per annum compound 70  Even through the Dot-Com and GFC 60 #039;m  Initial Licence Fees - 14% per annum compound 50  Annual Licence Fees - 24% per annum compound 40 30  Profit Before Tax - 14% per an

  11. Slide 11: 50+ Major New Customers

    50+ Major New Customers For personal use only Catholic Education Commission Victoria Ltd Department of Indigenous Affairs Australian Defence Credit Union Limited Toowoomba Regional Council Royal District Nursing Service Limited The Office of the Director of Public Prosecutions Central Queensland Uni

  12. Slide 12: Licence Fee by Product

    Licence Fee by Product For personal use only 12.0 $10.7m Up 10% $9.1m 10.0 Down 3% $5.9m FY11 8.0 Up 29% $4.6m #039;m 6.0 $3.7m Down 5% FY12 Up 78% 4.0 $1.7m $902k FY13 $452k Down 5% 2.0 Down 39% Down 61% 0.0 Financials & Student HR/Payroll CRM Enterprise Content Property Asset CPM Supply Chain Managem

  13. Slide 13: Significant Achievements

    Agenda For personal use only  Results  Significant Achievements  Outlook for Full Year  Long Term Outlook Significant Achievements Significant Achievements  Ci² - evolution of Ci  TechnologyOne Cloud  TechnologyOne’s Journey to the Cloud  Sales Transformation  Other Initiatives 13

  14. Slide 14: Ci² - Evolution of Ci

    Ci² - Evolution of Ci For personal use only Powerful specification  Native Browser – no more software installs, future proof  Incredibly simple to use, Consumer type software  Support smart mobile devices iPhone, iPad, Android etc.  Instant familiarisation & adaptive behaviour  One Powerful Wor

  15. Slide 15: Ci² Positioning

    Ci² Positioning For personal use only Enterprise software Any device. Any where. Any time. Ci² Positioning  Ci focus was the ‘Back Office’ users  Ci² targets ‘Front Office’  Large occasional user population of 100+  Consumer type software, incredibly simple  Use of smart mobile devices  Minima

  16. Slide 16: Strategy for roll out of Ci²

    TechnologyOne Ci² For personal use only Strategy for roll out of Ci²  Early adopters are being identified  Official launch will be mid 2014  Generally available late 2014 Significant Achievements Significant Achievements  Ci² - evolution of Ci  TechnologyOne Cloud  TechnologyOne’s Journey to t

  17. Slide 17: Powerful Specification for TechOne Cloud

    Powerful Specification for TechOne Cloud For personal use only  We develop the software and run it for you  Economies of scale benefits our customers  Continually evolving & improving TechnologyOne Cloud  We are investing 10’s millions dollars every year  We manage the complexity  We take care

  18. Slide 18: TechOne Cloud Status

    Status – Achieved For personal use only  2 Data centres commissioned in Sydney in ‘highly available’ configuration  Partnerships with Amazon (global Infrastructure As a Services provider)  TechnologyOne Enterprise suite now optimised for the TechOne Cloud  Proven - 8 Early adopters (5 live)  WA

  19. Slide 19: Cloud Impact on Revenue

    Cloud Impact on Revenue For personal use only Cloud - a positive impact on revenue ... 5 Current – On Premise 5 Cloud - Option 1 Cloud - Option 2 Initial Licence¹ $1,000,000 Initial Licence¹ $1,000,000 SAAS Licence4 $333,000 Annual Licence² $225,000 Annual Licence² $225,000 Annual Licence² $225,000

  20. Slide 20: TechnologyOne's Journey to The Cloud

    TechnologyOne’s Journey to The Cloud For personal use only TechnologyOne’s Journey to the Cloud ...  Email done  Corporate Accounting done  R&D in the Cloud done  Documents & Files in the Cloud Dec 2013  Demonstrations via the Cloud Mar 2014  Consulting in the Cloud Mar 2014 Expected cost savi

  21. Slide 21: Sales Transformation

    Sales Transformation For personal use only Review of our Sales Operation in progress  Accelerate licence fee growth in a challenging environment  Prepare to capitalize on our new offerings – TechOne Cloud, Ci²  Run an expanded sales team  Build a world class sales operation  Improve Sales to ex

  22. Slide 22: Other Initiatives

    Other Initiatives For personal use only  Transformation of our Marketing Business  TechnologyOne Leadership  TechnologyOne Solutions  Compelling Customer Experience  TechnologyOne College  United Kingdom • 2 new customers added this year – total of 13 customers • Review of the UK operation at

  23. Slide 23: Outlook for Full Year

    Outlook for Full Year For personal use only Economic Environment  The economic climate remains unchanged – challenging & uncertain.  The enterprise software markets has been one of the most resilient sectors of the IT industry in recent years.  In particular TechnologyOne markets have remained ro

  24. Slide 24: Outlook for Full Year: Focus Next Year

    Outlook for Full Year For personal use only Our focus next financial year is ...  Leverage our expanding & fast maturing product portfolio • HRP, Asset Management, ECM  Focus on our seven vertical markets – resilient & strong  Cross sell into our large existing customer base  Contain R&D costs 

  25. Slide 25: Improved Margins and R&D Growth Projections

    Improved Margins For personal use only Profit margin has contracted over the Net Profit Margin Before Tax last 10 years 35% 30%  Expanded our product range investment 25% 26% 24% 25% 25%  Profit margin now started to improve, as 20% 21% 21% 18% 19% predicted 17% 17% 17% 15%  Focus is to substanti

  26. Slide 26: TechnologyOne

    technologyone Transforming business, making life simple 26

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