Technology One Limited · ASX:TNE

Technology One — H1 FY2014 Earnings Presentation

22 slides from Technology One's earnings presentation, May 27, 2014

  1. Slide 1: 2014 Half Year Results Presentation

    5/27/2014 2014 Half Year Results Presentation Ending March 31st 2014 Adrian Di Marco Adrian_Dimarco@TechnologyOneCorp.com *FINAL May 2014 Commercial in confidence TechnologyOne Half Year Technology One Ltd Half Year Presentation - 27 May 2014 Technology One Ltd (ASX: TNE) today conducted presentatio

  2. Slide 2: Agenda and Results Summary

    5/27/2014 Agenda  Results  Significant Achievements  Outlook for Full Year Appendix  Long Term Outlook  Technology One Overview Results Summary FY14 FY13 Variance % Revenue $87.6 m $79.7 m 10% Initial Licence Fees $20.9 m $16.9 m 24% Consulting Fees $23.2m $22.2m 4% Annual Licence Fees $33.8 m

  3. Slide 3: Expenses up 9% and Results Highlights

    5/27/2014 Expenses up 9% Variable Operating 9.0 $ 67.0m, $ 7.8m, 70.0 Up 7% 8.0 Up 23% 60.0 7.0 6.0 50.0 FY13 FY13 5.0 40.0 $'m $'m 4.0 FY14 FY14 30.0 3.0 20.0 2.0 1.0 10.0 0.0 0.0 Variable costs¹ up 23% (vs L/Fees up 24%) Operating costs up 7%  Cloud costs associated with TechOne Cloud (up 100+%)

  4. Slide 4: Balance Sheet

    5/27/2014 Balance Sheet Strong balance sheet Mar-14 Mar-13 Var % $'000 $'000 $'000  Cash & Cash Equivalents $54.0m (vs. $50.3m) Cash & Available-for-sale financial assets 53,997 50,251 3,746 7%  Net Cash*: 16.09c/s (vs. 14.00c/s) Trade and other receivables 31,899 22,060 9,839 45% Other current as

  5. Slide 5: Results Analysis and Key Metrics

    5/27/2014 Results Analysis FY14 FY13 Variance Half Year 2014 v Half Year 2013 $'000 $'000 $'000 % Revenue excl interest 86,712 78,869 7,843 10% Expenses (excl R&D, interest, Depn & Amortisation) 53,986 48,588 5,388 11% EBITDAR 32,726 30,281 2,455 8% R&D Expenditure 18,318 17,217 1,111 6% EBITDA 14,4

  6. Slide 6: Profit By Segment Analysis and Dividends

    5/27/2014 Profit By Segment Analysis Investment in new service Evolve customer event called Application Managed Profit Contribution $600k $3.8m, Up 37% 4.0 Services (AMS) $3.5m, Down 7% Heads 216, Inline Heads 288, Down 4% $3.4m, Up 41% 3.5 Heads 118, Up 8% FY12 3.0 2.5 FY13 $'m 2.0 $1.3m, Up 31% 1.

  7. Slide 7: Revenue Streams and Major New Customers

    5/27/2014 Revenue Streams 25 Licence Fees 40 Annual Licence Fees Up 24%, Up 13%, Compound Growth 21% $4m 35 $3.9m 20 Compound Growth 18% 30 15 25 $'m $'m 20 10 15 10 5 5 ‐ ‐ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Licence fees up

  8. Slide 8: Revenue Streams: Consulting and Vertical Market Contribution

    5/27/2014 Revenue Streams Consulting Up 4%, Plus 25 $926k 12 10 20 Compound Growth 15% Compound Growth 5% Down 7%, 8 $520k 15 $'m $'m 6 10 4 5 2 ‐ ‐ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Product Consulting revenue up 4% Plus (no

  9. Slide 9: Significant Achievements

    5/27/2014 Agenda  Results  Significant Achievements  Outlook for Full Year Appendix  Long Term Outlook  Technology One Overview Significant Achievements Significant Achievements  Evolve User Conference  Ci Anywhere  TechnologyOne Cloud  TechnologyOne’s Journey to the Cloud  R&D  Sales Tra

  10. Slide 10: Evolve User Conference and Ci Anywhere

    5/27/2014 Evolve User Conference Gold Coast Convention centre  1200+ customer attendees  Released Ci² and TechOne Cloud  Simple path forward for our customers • continued evolution of our very successful Ci product to embrace the power of Smart Mobile devices and The Cloud to transform their busi

  11. Slide 11: Ci Anywhere and TechnologyOne Cloud

    5/27/2014 Ci Anywhere Enterprise software, incredibly simple TechnologyOne Cloud Enterprise Software As a Service We take care of everything We build the software and run it for you We own the software and invest millions each year to make it better for the Cloud Allows our customers to focus on the

  12. Slide 12: Cloud first, mobile first world

    5/27/2014 New positioning for TechOne Cloud TechnologyOne Cloud Enterprise Software as a Service The future of Enterprise Software, today. We want a single unifying theme going forward ... Cloud first, mobile first world 12

  13. Slide 13: Journey to the Cloud and Sales Transformation

    5/27/2014 TechnologyOne’s Journey to The Cloud TechnologyOne’s Journey to the Cloud ...  Email done  Corporate Accounting done  R&D in the Cloud done  Documents & Files in the Cloud done  Demonstrations via the Cloud June 2014  Consulting in the Cloud Dec 2014 Expected cost savings of $1.5m in

  14. Slide 14: UK Transformation

    5/27/2014 UK Transformation  UK conditions improving post GFC  Added two new customers in the first half  Capitalize on the ‘beach head’ we have in the UK, coupled with Ci Anywhere and TechnologyOne Cloud  New strategy for the UK being developed • Partner with a HRP vendor to meet UK requirement

  15. Slide 15: Outlook for Full Year

    5/27/2014 Outlook for Full Year  Economic environment remains challenging and uncertain  Strong committed annual licence fees in the second half  TechnologyOne enterprise business remains resilient  Good pipeline of opportunities in second half  We expect profit growth of 10% to 15% for the ful

  16. Slide 16: Appendix I – Long Term Outlook

    5/27/2014 Agenda  Results  Significant Achievements  Outlook for Full Year Appendix  Long Term Outlook  Technology One Overview Appendix I – Long Term Outlook Compound Growth 16% 2002 – 2011 Control R&D costs...  Leveraging our new Offshore R&D centre  Economies of scale  World Class R&D pra

  17. Slide 17: R&D Growth Projections

    5/27/2014 R&D Growth Projections Target for R&D growth of 8% per annum compound, over 5 years set in 2011 • In 2012 year we demonstrated this was achievable with R&D growth of 5% • In 2013 year we demonstrated this was achievable with R&D growth of 6% • Continues to be a very aggressive R&D program

  18. Slide 18: Appendix II - TechnologyOne Overview

    5/27/2014 Appendix II - TechnologyOne Overview Formed in Employees Largest R&D centre in Australia: 1000+ Revenue 1987 900 300+ developers corporations, government and statutory authorities $200m+ One of the most successful publicly listed companies Continually Doubles Invest20% 14 international off

  19. Slide 19: Strong financial track record

    5/27/2014 TechnologyOne Overview Strong financial track record1…  Doubling in size approx. every 4 yrs (last 15 yrs)  Continually profitable since 1992 (22 years)  Continually paid dividends since 1996 (18 years)  Cash and Equivalents $65.4m  Return on Equity 31%  Adjusted Return on Equity2 70

  20. Slide 20: What Makes Us Unique

    5/27/2014 What Makes Us Unique We are one of only a few Enterprise Vendors globally ...  Suite of 12 products  Deeply integrated We believe in the  Common platform freedom of choice our solution is  Consistent user interface modular by design The power of a single, integrated, enterprise system

  21. Slide 21: No implementation partners; The Power of One

    5/27/2014 What Makes Us Unique We do not use implementation partners or resellers We take complete responsibility for building, marketing, selling, implementing and supporting our enterprise solution for each customer to guarantee long term success. The Power of One What Makes Us Unique An enterpris

  22. Slide 22: technologyone

    5/27/2014 technologyone Transforming business, making life simple 22

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