Slide 1: Technology One Business Software Solutions
Technology One Business Software Solutions _ Advan, _DiMarco@TectinologyOneCorp, com
Slide 2: Our Half Year Results
# Our Half Year Results « Our Strategy « Business Model « Growth gunn
Slide 3: Half year results: profit before tax up 16%
» Misleading as H1 2003 was abnormally strong = Expenses excluding R&D down: 6% » Re-aligned costs & improved efficiencies « Company continued to invest in its future » R&D spend maintained at 20% # R&D fully expensed as incurred = Profit Before Tax up: 16%
Slide 4: Operating cashflow and balance sheet
last year) « Operating Cashflow of $4.26 million (vs $3.82m NPAT) « Balance sheet strong = Cash and equivalents’: $19.8 million # Debt/Equity : 3% = Transparency of results — all R&D fully expensed Cash, includes. short.term, investment:
Slide 5: Dividend outlook
. Board to decide if full year dividend to increase above 2.5cs expected by the market Cents per Share Dividend (cps) 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2001 2002 2003 2004
Slide 6: Technology One's focus
“Technology One’s focus is the design, development, implementation & support of integrated & powerful enterprise wide industry solutions using internet, eBusiness and client/server technologies.”
Slide 7: Our Strategy
Our Strategy
Slide 8: R&D investment: 20% of revenues
20% of our revenues eac Fully expensed Technology refresh New functionality & features for existing verticals ~ New chargeable modules (eg XlOne) New verticals — identification & development - Low entry cost for us. Examples: ~ Work One — asset/project management ~ Sales One — wholesale distribution
Slide 9: Product teams and profit imperative
“Product Tears Nsw Finance One Vie I People One I I v y > . Royalties paid by a region ! New Zealand For each jproduct sold I Vv Malaysia Student One a = Profit Imperative » Every region & every product has a P&L * Regional/Product managers with incentives based on their P&L » Regions pay a royalty
Slide 10: Connected Intelligence (CI) products
Connected Intelligence (Cl) products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 11: System replacement cycle 2004/2005
p ite 2004 /early 2005 = 7 year replacement cycle for systems bought in 1998: # Technological obsolesce » Many ERP systems failed # Poor choices made in the leadup to Y2K = Customer dissatisfaction # Consolidation of ERP market will further lead to opportunities as customers end up with obsolete pro
Slide 12: Connected Intelligence (CI) products
Connected Intelligence (Cl) products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 13: Leadership position over competitors
significant leadership position over our competitors =» Powerful User Experience based on Workplaces = One System — multiple products # Every person in a company will use our Ci product » Streamline & automate business processes = Cl series is our next generation products a Finance One Cl — ships Ju
Slide 14: Finance One CI launch and marketing
solutions that ‘look & feel’ like TNE products that are deeply integrated # Finance One Cl branding introduced # Marketing launch program under development = Product Marketing updating our Finance One presentation approach for Cl » Demonstrations of Finance One Ci to start in late May « 100% of sale
Slide 15: Connected Intelligence (CI) products
* Connected Intelligence (Cl) products « Increase traction for newer producis « Target the SME space - Biz One initiative # Sharper focus on State and Federal Government » New verticals through partnerships * Sales growth from overseas expansion » Protect our existing customer revenue base
Slide 16: Increase traction for newer products
ncrease Traction for Newer Pr * HR functionality to make it ‘best of breed’ in the next 12 months « Specialist Payroll/HR salesperson added #« Retail One « Fashion and apparel functionality to be added in next 12 months « Specialist Retail salesperson added « Proclaim One # Works Management to be ad
Slide 17: Student One
lent One Limited opportunities in Australia Long term looks good as our competitors will struggle R&D team size limited and focus on profitability New Zealand opportunities being investigated MY & UK are possibilities at some point in the future
Slide 18: Connected Intelligence (CI) products
Connected intelligence (Cl) products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 19: SME market
SME market = Why Biz One? « Collect SMEs before they become mid market prospects for Finance One a Finance One is seen as too big to SMEs
Slide 20: Biz One
Slide 21: Functionality priced for SMEs
onality but priced for SM « Pre-configured and quick implementation times * Integration — Payroll through to financials # One company develops, markets, sells, implements & support « Upgrade path to Finance One provided as a company grows « Rental option #« Further trials to continue over next six m
Slide 22: Connected Intelligence (CI) products
Connected intelligence (Cl) products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 23: Government sales becoming complex and strategic
te al! becoming : co complex and strategic sale as they adopt one of the following approaches: « Whole of Government * Clusters * Shared Services « Strategic approach to Government needed: » Appoint a lobbyist to assist us with intelligence, strategy and execution = Will only work if the initiative
Slide 24: CI products
Ci products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 25: New verticals through partnerships
» Business Intelligence » Utilities » Healthcare « New partnerships under investigation # Professional Services market » Remote Data Capture (for Councils and Retail)
Slide 26: Connected Intelligence (CI) products
Connected intelligence (Cl) products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 27: Overseas expansion
« South Africa » UK « China * Our “Act Locally Think Globally “ organisational restructure key to expansion overseas » Regional managers in each region » Regional based strategy * P&L responsibility
Slide 28: Connected Intelligence (CI) products
Connected intelligence (Cl) products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 29: Customer base underpins our business
ie name of the game going forward “Buyers Revenge - Those who keep their customers vs those that will lose them” = Our customer base revenues underpin our business
Slide 30: We develop, market, sell, implement & support our products
“We develop, market, sell, implement & support our range of products” « Benefits We take total responsibility Customer satisfaction & customer retention Deep direct relationships with our customers Sell more products & services Annuity stream — 50% of our revenues come from our existing customers ev
Slide 31: Technology One Business Software Solutions
xlogvyOneCorp.Com Technology One Business Software Solutions These slides are now availabie from our web site: www. TechnologyOneCorg.com under the investor relations section. Adrian _DiMarco@ | echnologyOneCorp.com