Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2006)
20 slides from Integrated Research's shareholder meeting presentation, Nov 14, 2006
Slide 1: Integrated Research Limited 2006 Annual General Meeting
ivy iitegrated Research Integrated Research Limited ‘2006 Annual General Meeting 14 November 2006 ABN: 76 003.588 449 Performance monitoring software for business-critical systems
Slide 2: Chairman's Address
ivy iitegrated Research Chairman’s Address Presentation by: Steve Killelea Performance monitoring software for business-critical systems
Slide 3: CFO's Address
fy integrated Research CFO’s Address Presentation by: Stephen Rorie
Slide 4: FY 2006 performance
"FY 2006 performance "30 June 2005 | % -AUD$000's. Licence fees 19,040 17,790 7% Maintenance fees 14,909 14,877 0% Other 574 446 29% [Totalrevenue = (asisd| si BS R&D expenses 6,687 6,241 7% Sales and marketing 16,452 15,431 7% General and admin 3,782 3,494 8% Totalexpenses = | HPT PBT 7,967 8,241 -
Slide 5: R&D spending
“| ReDepnding Gross spending 7,348 7,747 -5.2% Capitalised 4,657 4,113 13.2% Amortised 3,996 2,607 53.3% % of revenue Prior period comparatives restated for AIFRS | Baclarmance monioring so!
Slide 6: Other key metrics
Other key metrics Basic EPS (cents) 4.22 3.77 12% Dividend per share — 2.5 2.5 0% unfranked (cents) Net Cashflow from Operations 5,085 5,439 -7% (AUD$000’s) Capex (AUD$000’s) 506 671 -25% *Company entered into new lease for North Sydney office. Minimal profit and loss impact
Slide 7: Key balance sheet items
-Balancesheet —T Key balance sheet items Cash Receivables 13,615 10,079 Net R&D 9,567 8,885 Deferred Revenue 10,163 9,007 Net assets 23,288 19,958 Prior period comparatives restated for AIFRS IPROGNOSIS te
Slide 8: First days
“First 100 days « Observations * Strong balance sheet ° Simple set of accounts * Quality of customer base * Management of overseas operations * Focus Areas * Assisting company to scale for growth * Investment community ° Working capital management 1) perlorwmaars
Slide 9: CEO's Address
fy integrated Research CEO’s Address Presentation by: Keith Andrews
Slide 10: 2006 Results: License fees by platform
- 2006 Results | License fees by platform (in AUD$ millions) IP Telephony Windows/ UNIX/Linux NonStop « 45% of revenue recurring (2006) « 55% new license revenue (2006) - Skewed to end of reporting periods - Working to reduce skew over time New customers by product: «15 new HP NonStop « 51 new IP te
Slide 11: Sales by region: FY 2003-2006
Americas — US$ millions USS million 9.0 2003 2004 = 2005 2006 Year "Sales by region: FY 2003-2006 UK/Europe — GBP millions Millions GBP 25 2003 2004 =2005 = 2006 Year |) Pedoreance moniter Asia Pacific - US$ millions 3.0 2003 2004 = 2005 = 2006 Year
Slide 12: 10-year revenue history — US$ millions
10-year revenue history — US$ millions 30 25 20 10 Revenue - US$ milfions a a Other Revenue @ Licence Fees @ Maintenance one 1997 1998 2001 Year 2002 2005 2006 FY2003 affected by lraq war
Slide 13: 10-year revenue history — AUD$ millions
10-year revenue history —- AUD$ millions Revenue - A$ millions $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 O Other Revenue @ Licence Fees @ Maintenance lly 1999 2000 2001 Year 2002 2005 2006 | Peclormaar
Slide 14: Maintain leadership in HP NonStop
* Maintain leadership in HP NonStop « More R&D in new products « Customers buying more capacity for increasing credit/debit/internet payment transactions « Targeted account selling of Windows, UNIX, Linux « Cross sell to existing accounts working « Explore opportunities in changing competitive lands
Slide 15: Nemertes Research: Timing & Trends
_ Independent source: Nemertes Research (from Australian visit on November 2) WIE _— Timing & Tr ends # Rollouts are more evolutionary * Departure from early predictions # Global enterprises planning for 5- to 7-year projects ® Now in pilot and growing rollout phases * Tend to have the most location
Slide 16: Nemertes Research: management tools by VoIP users
i 417 Independent source: Nemertes Research f (from Australian visit on November 2) Aver age r of Management tool Employees # of Employees Using VOIP Prognosis 155,242 12,883 Infovista 95,000 {2,000 NetlQ 58,500 7,500 Openview 52,644 3,162 Concord 50,775 6,473 Smarts 46,433 5,054 None 30,300 555 IP
Slide 17: VoIP growth profile
“VoIP growth profile = Revenue $ \ Market evolving, still early in life cycle: «Adoption by new enterprises increasing © « Deployments slower than expected (between 10 — 20% deployed) «More activity from systems integrators, carriers, and industry analysts than 12 months ago New licences for we addi
Slide 18: Growth strategy - VoIP
_ Growth strategy - VoIP « Expand our own sales capability « Direct focus on large enterprises « Business development coverage of managed service providers (MSPs) and systems integrators (SIs) « Partners to extend reach to mid market « Expand our product capability « Enhanced management reporting «
Slide 19: Focus on execution
Focus on execution A stronger management team Making our people a priority - our most valuable asset Creating value for shareholders | Pevormanre (4
Slide 20: Integrated Research Limited 2006 Annual General Meeting
ivy iitegrated Research Integrated Research Limited ‘2006 Annual General Meeting 14 November 2006 ABN: 76 003.588 449 Performance monitoring software for business-critical systems
Integrated Research — Shareholder Meeting (November 2006) on 6ix