Technology One Limited · ASX:TNE
Technology One — FY2011 Earnings Presentation
47 slides from Technology One's earnings presentation, November 2011
Slide 1: 2011 Full Year Results Presentation
2011 Full Year Results Presentation Ending September 2011 Adrian Di Marco Executive Chairman www.TechnologyOneCorp.com Commercial in confidence Nov 2011 – Final Version
Slide 2: TechnologyOne Overview: seven vertical markets
TechnologyOne Overview TechnologyOne develops, markets, sells, implements 1. ____ Click __ to ____ edit _____ Master ____ text ______ styles and supports a new generation enterprise solution _____Second _____ specifically levelat seven vertical markets: targeted ____ • Third _____ Local level22 Gove
Slide 3: TechnologyOne Overview: enterprise solution products
TechnologyOne Overview Our enterprise solution consists of the following products: 1. ____ Click__ Financials TechnologyOne to ____edit_____ Master ____ text______ styles TechnologyOne Asset Management _____Second _____ level TechnologyOne Supply Chain ____ Third_____ TechnologyOne level33 Hum
Slide 4: One of Australia's largest software houses
TechnologyOne Overview One 1. ____of Australia’s Click__ to ____ largest_____ edit software ____ Master text______ styles houses, specialising in the research, _____ Second development_____ level and commercialisation of software ____ –_____ Third invest $32m+ in R&D each level44 year _____ Fourth
Slide 5: Offices and major supplier of enterprise applications
TechnologyOne Overview Offices in Australia, New Zealand, Asia and more recently, South Pacific and the 1. ____Click United __ to Kingdom____ edit_____ (UK) Master ____ text______ styles _____ Second Major _____ supplier level applications in of enterprise ____ ANZThird _____ – 900+ level55 majo
Slide 6: Strong financial track record
TechnologyOne Overview TechnologyOne - doubling in size, every Strong financial track record … three years over the last 15 years ….. Revenue growth* 22% per annum 1. ____Click __ Profit growth* to ____ edit _____ Master 20% per annum ____ text______ styles _____ Second Dividend _____ growth* l
Slide 7: Agenda
Agenda Results 1. ____ Click __ to ____edit_____ Master____ text______ styles Significant Achievements _____ Second _____ level Outlook ____ Third _____ for Full Year level77 Long _____ Fourth Term _____ Outlook level ____ Fifth _____ level
Slide 8: 2011 Full Year Results
2011 Full Year Results 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level88 _____ Fourth _____ level ____ Fifth _____ level Net Profit Before Tax $26.7m, up 15% (up $3.4m) Net Profit After Tax $20.3m, up 14% (up $2.5m) Revenue $156.7
Slide 9: Continued significant investments made across the board
Results Continued significant investments made across the board: 1. ____ NewClick__ to ____ Solutions editwhich group, _____ Master made____ a text loss of______ styles $3.2m _____ Second Increased _____ levelin R&D, up 18%. R&D at 20% is higher than our expenditure historical ____Third average _
Slide 10: 2011 Full Year Results: balance sheet strong
2011 Full Year Results 1. ____Click __ to ____ edit_____Master ____ text______ styles _____ Second _____ level ____Third _____ level1010 _____ Fourth _____ level Balance sheet strong ____ Fifth Cash_____ andlevel Equivalents*: $45.4m (vs $36.6m pcp) Bank overdraft facility of $7m (which is not
Slide 11: Dividends for this year
2011 Full Year Results Dividends for this year Half 1 1.46 cps up 10% (paid) 1. ____ Click Half 2 __ to ____edit 3.16 cps_____ Master up 10% ____ text______ styles (proposed) _____ Second Sub Total_____ level 4.62 cps up 10% ____ Third Special_____ level1111 Dividend 1.50 cps inline (propose
Slide 12: Full Year 2011 v Full Year 2010
2011 Full Year Results 2011 2010 Variance Full Year 2011 v Full Year 2010 % $'000 $'000 $'000 Revenue excl interest 155,644 134,840 20,804 15% 1.____ Click __ to ____ edit_____ Expenses (excl R&D, Depn, Forex & Amortisation) Master 92,926 81,402 ____ text 11,524 ______ styles 14% _____ EBITDAR Secon
Slide 13: Full Year 2011 key ratios and measures
2011 Full Year Results Full Year 2010 v Full Year 2010 2011 2010 Variance % EPS cents Reported 6.71 5.93 0.78 13% 1.____ Click DPS cents - standard __ to ____ edit4.62 _____ Master 4.20 ____ text______ 0.42 styles 10% DPS cents_____ Second - special _____ level 1.50 1.50 ____ Third Dividend Payout R
Slide 14: Revenue Streams
Revenue Streams 1. ____Click__ to ____ edit_____ Master ____ text______ styles _____ Second _____ level ____Third_____ level1414 _____ Fourth _____ level ____Fifth_____level Revenue $156.7m, up 15% (up $20.8m) Initial licence fees $30.7m, up 15% (up $4m) Annual licence fees $55.3m, up 14% (up $6
Slide 15: Revenue Streams: licence fees
Revenue Streams Up 15% Up 14% 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level1515 _____ Fourth _____ level ____ Fifth _____ level Continuing strong demand for our products: 15% Annual licence fees continue to grow strongly: up 14% incre
Slide 16: Consulting Services line ball
Revenue Streams Consulting Services line ball, impacted by: NewClick 1. ____staff__ andto timeedit ____taken_____ toMaster get them____ up text to speed ______ styles StaffSecond _____ utilisation _____level ____Third Stronger _____ level1616 growth in Consulting Services in 2011/2012: _____ F
Slide 17: TechnologyOne Plus had a strong result
Revenue Streams TechnologyOne Plus (up 49%) had a strong result: 1. ____ Click __ to ____ edit_____Master ____ text______ styles New _____ strategy Second _____ for level Plus to work closely with our product business to provide ‘value added services’ around our ____ Third _____ enterprise level171
Slide 18: Licence Fees By Product
Licence Fees By Product 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level1818 _____ Fourth _____ level ____ Fifth _____ level Licence fees $30.7m, up 15% CPM licence fees $9.4m, up 22% (up $4.0m) (up $1.7m) Student Management licence
Slide 19: Good pipeline of opportunities continue
Licence Fees By Product Good pipeline of opportunities continue into the 1. ____ Click __ to____edit_____ Master ____ text______ styles new year _____ Second _____ level All products are expected to perform strongly next ____ Third year _____level1919 _____ Fourth _____level ____ Fifth _____ lev
Slide 20: Agenda
Agenda Results 1. ____ Click __ to ____edit_____ Master____ text______ styles Significant Achievements _____ Second _____ level Outlook ____ Third _____ for Full Year level2020 Long _____ Fourth Term _____ Outlook level ____ Fifth _____ level
Slide 21: Significant Achievements
Significant Achievements Significant Achievements 1. ____ Click __ to ____ edit_____ Master ____ text______ styles R&D _____ Second _____ level New ____ Offshore Third _____ R&D Centre level2121 Compelling _____ Fourth Customer _____level Experience ____ Fifth _____ levelSolutions TechnologyOne
Slide 22: R&D
R&D R&D investment was 20% of Revenue ($32m) Financials, 1. ____ Click__Supply to ____Chain,_____ edit CPM and Student Master ____ text Management ______ styles continue perform well _____ Second _____ level Continuing investment in new areas, strong in next few ____Third years: _____ level2222 _
Slide 23: TechnologyOne Ci²
TechnologyOne Ci² Ci² is the next generation of our enterprise suite for the Cloud ... Simplified computing model – all applications hosted in the cloud 1. ____Click __ to____edit_____ Master ____text______ styles Browser _____ based Second_____– no more software installs level Pervasive ____
Slide 24: Ci² next generation enterprise suite for the Cloud
TechnologyOne Ci² Ci² - the next generation of our enterprise Combined with our traditional suite for the Cloud ... strengths … 1. ____Click __ to____edit_____ Master ____ text______ styles Enterprise vision Simple computing model _____ Second_____ level Native Browser support – Macs, PCs, D
Slide 25: Significant Achievements
Significant Achievements Significant Achievements 1. ____ Click __ to ____ edit_____ Master ____ text______ styles R&D _____ Second _____ level New ____ Offshore Third _____ R&D Centre level2525 Compelling _____ Fourth Customer _____level Experience ____ Fifth _____ levelSolutions TechnologyOne
Slide 26: New Offshore R&D Centre
New Offshore R&D Centre New R&D centre in Brisbane up and running with 500+ staff 1. ____Click __ to ____edit _____ Master ____text______ styles New offshore R&D centre to handle our future growth _____ Second _____ level To contain costs – operating leverage of offshore R&D staff ____Third _____
Slide 27: Timeline new offshore R&D centre
New Offshore R&D Centre Timeline new offshore R&D centre 1. ____ Click __ to ____edit_____ Master ____ text______ styles Research and feasibility study completed – Indonesia selected _____ Second _____ level Negotiations ____ Third _____ and contracts level2727 completed Establishment _____ Four
Slide 28: Significant Achievements
Significant Achievements Significant Achievements 1. ____ Click __ to ____ edit_____ Master ____ text______ styles R&D _____ Second _____ level New ____ Offshore Third _____ R&D Centre level2828 Compelling _____ Fourth Customer _____level Experience ____ Fifth _____ levelSolutions TechnologyOne
Slide 29: Customer retention is critical to our future success
Compelling Customer Experience (CCE) Customer retention is critical to our future success 1. ____ Click __ to ____ edit_____ Master ____text______ styles $50m+ annual revenue, $17m+ licence fees, _____ Second _____level $18m+ services ____ Third _____ level2929 Our focus is to give our customers
Slide 30: Compelling Customer Experience status
Compelling Customer Experience Status 1. ____ Click__ to ____edit _____ Master ____text ______ styles Developed our own Compelling Customer Experience program _____ Second _____ level More than 50 workshops and 800 staff trained throughout Australia ____ Third_____level3030 Re-engineering _____
Slide 31: Significant Achievements
Significant Achievements Significant Achievements 1. ____ Click __ to ____ edit_____ Master ____ text______ styles R&D _____ Second _____ level New ____ Offshore Third _____ R&D Centre level3131 Compelling _____ Fourth Customer _____level Experience ____ Fifth _____ levelSolutions TechnologyOne
Slide 32: TechnologyOne Solutions
TechnologyOne Solutions Build, demonstrate, sell and implement a ‘best practice, preconfigured out of the box’ solution for our key vertical markets 1. ____ Click__ to____ edit_____ Master ____ text______ styles Change our approach from ‘tell us what you want and we will build it’ to _____ ‘this
Slide 33: TechnologyOne Solutions customer list
TechnologyOne Solutions $5m of licence fees attributable to our Solutions: 1. ____ The Click __ Disability Trustto ____ edit_____ Master ____ Multiple text______ Sclerosis styles Australia Port of Newcastle Affordable Community Housing Devonport City Council (TAS) Reserve Bank NZ _____ Se
Slide 34: Significant Achievements
Significant Achievements Significant Achievements 1. ____ Click __ to ____ edit_____ Master ____ text______ styles R&D _____ Second _____ level New ____ Offshore Third _____ R&D Centre level3434 Compelling _____ Fourth Customer _____level Experience ____ Fifth _____ levelSolutions TechnologyOne
Slide 35: Agenda
Agenda Results 1. ____ Click __ to ____edit_____ Master____ text______ styles Significant Achievements _____ Second _____ level Outlook ____ Third _____ for Full Year level3535 Long _____ Fourth Term _____ Outlook level ____ Fifth _____ level
Slide 36: Outlook for Full Year: economic environment
Outlook for Full Year Economic Environment 1. The ____ global __ economic Click to ____ climate edit_____ Master remains ____ uncertain, text ______ styles and global events in recent months _____ cloud Second_____the outlook. This may impact business confidence in Australia level and New Zealand.
Slide 37: Outlook for Half Year
Outlook for Half Year 2012 Half Year will be challenging Expense growth in Half 1 of 2012 is high, peaking at 17% up 1. ____ Click__ to ____ edit_____ Master ____ text______ styles Profit growth in Half 1 2011 was abnormally high (up 33%) – this creates a very higher base for us _____Second to j
Slide 38: Outlook for Full Year
Outlook for Full Year 2012 Full Year - Profit growth expected to continue in the new financial year We Click 1. expect ____ __toto seeedit continuing ____ _____ growth Master intext ____ licence fees and revenue ______ styles We Second will need _____ to carefully _____ levelmonitor and manage t
Slide 39: Agenda
Agenda Results 1. ____ Click __ to ____edit_____ Master____ text______ styles Significant Achievements _____ Second _____ level Outlook ____ Third _____ for Full Year level3939 Long _____ Fourth Term _____ Outlook level ____ Fifth _____ level
Slide 40: Improved Profit Margin
Long Term Outlook Improved Profit Margin Profit 1. ____ margin __has Click to contracted ____edit_____ over the Master last ____ text______ styles 10 years _____ as_____ Second we have: level • Expanded our product range ____Third_____ level4040 • Invested in Ci & new R&D centre _____ Fourth • Ext
Slide 41: Improved Product Contribution
Long Term Outlook Improved Product Contribution Opportunity 1. ____ Click to substantially __ to ____ edit grow the _____ Master ____ text______ styles ECM, CRM, HR/Payroll, contribution to profit by these Mobile 0% _____Second products over _____ the next level five years: ____ Third • Asset ____
Slide 42: Licence Fee Contribution - Vertical Market
Licence Fee Contribution - Vertical Market 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level4242 _____ Fourth _____ level ____ Fifth _____ level Future Growth: Government, Financial Services, Managed Services & Utilities
Slide 43: Long Term Outlook: UK growth potential
Long Term Outlook 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level4343 _____ Fourth _____ level ____ Fifth _____ level UK has significant potential growth for us in future years We need to get through the economic cycle in the UK
Slide 44: Control of costs, and leveraging Offshore R&D
Long Term Outlook Control of costs, and leveraging Offshore R&D 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level4444 Compound Growth 16% Compound Growth 16% _____ Fourth _____ level ____ Fifth _____ level
Slide 45: Long Term Outlook: Completed
Long Term Outlook Completed Power 1. ____of One Click__– unique to ____ approach edit _____to build, Master market, ____ sell, text______ implement and support our products styles Enterprise _____ Suite Second – onelevel _____ of a few companies globally with an enterprise solution Aggressive
Slide 46: Long Term Outlook: In Progress
Long Term Outlook In Progress Pipeline of products – at various stages of maturity, which we will continue to harvest in future 1. ____ years, Click as __ to ____ immature edit_____ products Master move from ____ losstext ______ makingstyles to profitability _____ Second Geographical _____ level
Slide 47: 2011 Full Year Results Presentation
2011 Full Year Results Presentation Ending September 2011 Adrian Di Marco Executive Chairman www.TechnologyOneCorp.com Commercial in confidence Nov 2011 – Final Version