Slide 1: Half Year Results - December 2005
Half Year Results - December 2005 BOLTETE: By Technology One Business Software Soiutions The Power of One Adrian DiMarco@!echnologyOneCorp.com
Slide 2: Agenda
AGENDA » 2005 Half Year Results « Significant Achievements Last Six Months * Outlook « Long Term Growth Prospects
Slide 3: 2005 Half Year Results
2005 Half Year Results * Record half year Profit After Tax $4.49m: up 18%* » Profit Before Tax $6.33m: up 15% » Expenses excluding R&D up: 6% " Company continued to invest in its future » R&D spend at 19% =» R&D fully expensed as incurred *R&D Tax Concessions reduces, Taxable Income, CEE
Slide 4: Licence fees to new customers up 10%
= Licence fees to new customers up 10% = Licence fees to existing customers up 54% « Annual licence fee revenue up 21% « Consulting services revenue up 5%
Slide 5: 2005 Half Year Results
2005 Half Year Results nance. previous half year = Involved in almost all deals = Have not yet tapped the full potential of our Payroll/HR solution (People One) « Proclaim One revenue up 24% = Student One revenue up 66%
Slide 6: 2005 Half Year Results
2005 Half Year Results | aging perrormance was » Project Services Revenue down $1.1m, Profit down $534k = Products strong results in: Qld, SA, VIC, NZ = Products weaker results in: TAS, WA, NSW, MA » Some specific state issues are being addressed « Indicates the robustness of the TNE business model
Slide 7: Cash flow and balance sheet
meturnM. last year) « Operating Cash Flow of $5.6 million (vs $4.49m NPAT) « Balance sheet strong = Cash on hand’: $24.6m (vs $19.8m last year) = Debt/Equity: 3% (vs 3% last year) « Transparency of results — all R&D fully expensed *Cash includes short term investments
Slide 8: Dividend History
= Board to decide if full year dividend to increase e above 2.85 cents paid last year TNE Dividend History 3.00 2.50 2.00 @H1 OF ull year 1.50 Dividend (cps) 1.00 0.50 0.00 2001 2002 2003 2004 2005 Year Midd
Slide 9: Total Revenue
Total Revenue 26,311 24,586 1,725 7 Revenue 25,660 24,125 1,535 6 Expenses 14,204 13,407 797 6 EBITDAR 11,456 10,718 738 7 R&D 4,965 4,862 103 2 EBITDA 6,491 5,856 635 1 Depreciation and Amortisation 479 433 46 VW Amortisation of Intangibles 333 361 (28) {8) EBIT 5,679 5,062 617 12 Net Interest Inco
Slide 10: 2005 Variance Increase
2005 Variance Increase $ (000) $ (000) $ (000) % Adjusted Return on Shareholders’ Equity 24% 19% Cash and Cash Equivalents 24,585 49,822 4,763 24 Net Operating Cash Fiow 5,620 4,264 1,356 32 Debt/Equity 3% 3% EBITDA Margin 25% 24% NPBT Margin 24% 22% R&D as Percentage of Total Revenue 19% 20%
Slide 11: Finance One continued to perform strongly
« Finance One continued to perform strongly = Involved in majority of deals = Strategic deals signed: — Government of Samoa ~ National Heart Foundation — Papua New Guinea Harbours Ltd — Royal Flying Doctors ~ Todd Energy (NZ) ~ Ministry of Defence NZ
Slide 12: People One customers now
» 73 People One customers now = Gaining momentum — On the way to being one of Australia’s leading Payroll/HR solutions » Untapped potential in our existing user base » Another 12 to 24 months before we go after Best of Breed Payroll/HR market, giving customers a choice « Retail One = No new deals in
Slide 13: Local government customers
— Barossa Council (SA) — City of Campbelltown (SA) ~ City of Holdfast Bay (SA) — Mareeba Shire Council (QLD) — Snowy River Shire Council (NSW) — Wyndham City Council (VIC) « Leading supplier in Local Government in Australia « Good opportunities going forward
Slide 14: Significant Achievements Last Six Months
__ Significant Achievements Last Six Months CCl » James Cook University signed = Clear win over other contenders is a strong lead indicator = Limited but good opportunities in the medium term Hie ddd
Slide 15: New Zealand customers
— Far North District Council ~ Ministry of Defence — NZ Automobile Association — Port of Tauranga — Todd Energy » Good opportunities going forward
Slide 16: Significant Achievements Last Six Months
_ Significant Achievements Last Six Months — — Nandos Chickenland » New Business Development Manager appointed * Expect improvement in second half
Slide 17: Reduced performance as forewarned last year
» Reduced performance as forewarned last year =» NSW major focus to grow the sales pipeline = Second half continues to look challenging Hie ddd
Slide 18: Why Biz One?
= Why Biz One? » Finance One is seen as too big for SMEs » Pricing and implementation too expensive for SMEs » Appropriate Pricing Model and Basis for Calculation » Template driven solution with some limitation on functionality =» More successful trials now run as follows: » IFAP (Industrial Foundat
Slide 19: Significant Achievements Last Six Months
Significant Achievements Last Six Months. . Opportunity ‘still unclear
Slide 20: Order Management solution (Work One)
Order Management solution (Work One): Out of The Box solution for Finance One customers Strong potential going forward Significant development still required Low/Mid end solution for: — Capital Intensive Industries — General Professional Services Organisation Strategic Partnership being put in place
Slide 21: R&D into next generation products (Connected Intelligence)
« R&D into our next generation products (Connected Intelligence series) on track « Finance One Cl released and now live at 4 sites » All new Finance One sales are on the Cl platform
Slide 22: Support to our consultants
support to our consultants eliver excellent customer service » Interface between R&D and our Consultants » Complimentary to our Product Marketing group formed last year Prospects Customers Sales Team Consulting Team Product Marketing Product Service 1 Delivery Research & Development (R&D)
Slide 23: Integrated strategic planning approach
= Integrated strategic planning approach being adopted across the company
Slide 24: Quarterly review of performance
Quarterly review to performance t Company kickoff i Approved budgets and KPIs i Budgeting cycle i R&D strategic planning session i State strategic planning session i Executive strategic planning session
Slide 25: R&D: 19-20% of revenue
= 19-20% of revenue « Connected Intelligence (Cl) major R&D focus for next two years: » Finance One Cl Stage 2 = Retail One Cl =» People One Cl = Student One Cl » Proclaim One Cl
Slide 26: Outlook
Outlook i) /24 months: = Multi-currency for international markets =» Works Order/Asset Management (continued work) « Business Intelligence » New Procurement system » Maturing of Retail functionality = HR functionality for People One » HESA/HEIMS for Student One » CRM (Out of The Box) under considera
Slide 27: On track for expected profit growth
* Clearly on track for expected profit growth for 2004/2005 financial year will be at the higher end of our range: » 5% to 10% growth " Additional costs in the next half as we add more infrastructure to handle Cl rollout as well as increase development resources * UK is our next geography Planning v
Slide 28: Bed down Finance One CI and establish it in the market
« “Bed down” Finance One Cl and establish it in the market » Progressively develop and release other Cl products « Initial entry into UK market =» Market consolidation continues « Microsoft has four overlapping products that will be replaced with Project Green. * Oracle has three overlapping product
Slide 29: Student market uncertainty and acquisitions
y of é y et in question * Callista has recorded major losses in last two years " Oracle yet to announce its future plans for Peoplesoft’s student administration solution. « Peoplesoft’s slow response to legislative changes required by Australian universities. » Acquisitions and partnerships continue
Slide 30: Long term growth: Connected Intelligence series
ew genera ion products - Connected Inte igence (Cl) series = One integrated solution strategy = Increase traction for our newer products = Target the SME space — Biz One initiative = Sharper focus on State and Federal Government = New verticals through partnerships or acquisitions = Sales growth fro
Slide 31: Half Year Results - December 2005
Half Year Results - December 2005 BOLTETE: By Technology One Business Software Soiutions The Power of One Adrian DiMarco@!echnologyOneCorp.com