Slide 1: FY2018 H1 Investor Presentation
For personal use only FY2018 H1 INVESTOR PRESENTATION Objective Corporation Limited – ASX OCL
Slide 2: FY2018 H1 Highlights
FY2018 H1 HIGHLIGHTS For personal use only REVENUE $ 33M 10% 10% growth in Revenue EBITDA 57% Recurrent Revenue $6.6m in Research & Development, fully expensed $ 5.8M 23% OPERATING CASH FLOW 8.9M 23% growth in EBITDA $ 10% growth in NPAT to $4.1m, 4.5 cents per share 153% Record half year cash balan
Slide 3: Contents
For personal use only CONTENTS 1 STRATEGY / BUSINESS UPDATE 2 BUSINESS LINE HIGHLIGHTS 3 FINANCIAL PERFORMANCE 4 GROWTH STRATEGY
Slide 4: Our Purpose
OUR PURPOSE For personal use only Bringing governance and efficiency to the organisations our community depends on Public Sector Local Government Financial Services & Insurance Healthcare Energy & Infrastructure 4
Slide 5: Investing in Outstanding Solutions
INVESTING IN OUTSTANDING SOLUTIONS For personal use only RESEARCH & DEVELOPMENT INVESTMENT 115.6 109.0 96.2 84.9 Increasing 45.8 54.9 64.3 74.0 leads to… Outstanding 36.5 investment 17.4 27.1 products & 9.4 9.3 9.1 9.4 9.7 11.0 11.3 12.9 8.7 in R&D 8.8 9.6 6.6 solutions FY07 FY08 FY09 FY10 FY11 FY12
Slide 6: Objective Design Language
OBJECTIVE DESIGN LANGUAGE For personal use only …with a unified user experience across products 6
Slide 7: Objective Products
OBJECTIVE PRODUCTS For personal use only Software to underpin governance for government and regulated industries Leverage the power of Objective Inform and Implement robust information governance with a Streamline content driven processes accessing Objective Perform to manage information and documen
Slide 8: Delivering Value to Customers
DELIVERING VALUE TO CUSTOMERS For personal use only Digital transformation delivering return on investment for customers SOLUTION SNAPSHOT | TRANSFORM ING CONTRACT APPROV ALS SOLUTION SNAPSHOT | DIGITALLY TRANSFORMING CORRESPONDENCE SOLUTION SNAPSHOT | DIGITAL TRANSFORM ATION On average, we’ve reduc
Slide 9: Transitioning Customers to Managed Services
TRANSITIONING CUSTOMERS TO MANAGED SERVICES For personal use only Helping customers transition to modern software delivery and management 55 MANAGED SERVICES CONTRACTS Objective Managed Services demonstrably reduces risk to our organisation by ensuring proactive maintenance and fast response to inci
Slide 10: Expanding Go-to-Market Strategy
EXPANDING GO-TO-MARKET STRATEGY For personal use only Working with global partners develop deep product integration and international sales, with specialist partners delivering local market expertise 10
Slide 11: Contents
For personal use only CONTENTS 1 STRATEGY / BUSINESS UPDATE 2 BUSINESS LINE HIGHLIGHTS 3 FINANCIAL PERFORMANCE 4 GROWTH STRATEGY
Slide 12: Business Highlights: Manage Information and Processes
For personal use only Manage information and processes across the enterprise BUSINESS HIGHLIGHTS Record financial performance • Strong revenue growth, significant growth in operating profit • Increase in subscription-based revenue Objective ECM 10.4 • Powerful, modern and engaging browser experience
Slide 13: Business Highlights: Author, Verify and Publish
Author, verify and publish on-brand content, with ease. For personal use only Engage with stakeholders or the community to gather critical feedback and input. BUSINESS HIGHLIGHTS Financial Services and Insurance (FSI) – market position firmly established in Australia & New Zealand: Opportunities ari
Slide 14: Business Highlights: Secure External Collaboration
For personal use only Secure external collaboration BUSINESS HIGHLIGHTS Financial performance • Increased ARR driven by deeper customer engagement 4,000,000 Connections (millions) 80,00 and sales momentum ARR ($ millions) 67 69 3,500,000 63 64 70,00 Next generation product release Users ('000) 58 60
Slide 15: Business Highlights: Digitally Transform Plan Reviews
Digitally transform plan For personal use only reviews and assessments BUSINESS HIGHLIGHTS Launch of Trapeze 10.2 - completely re-designed user experience • Well received by customers generating significant increase in upgrades • Development continues to improve functionality to extend use New custo
Slide 16: Contents
For personal use only CONTENTS 1 STRATEGY / BUSINESS UPDATE 2 BUSINESS LINE HIGHLIGHTS 3 FINANCIAL PERFORMANCE 4 GROWTH STRATEGY
Slide 17: Business Line Reporting
BUSINESS LINE REPORTING For personal use only (A$M) FY18 H1 FY17 H1 % Change Sales Revenue 28.0 25.0 12% Operating Profit 8.0 5.9 34% Sales Revenue 2.8 2.8 -% Operating Profit (1.0) (0.2) Large Sales Revenue 1.1 0.7 54% Operating Profit (0.8) (1.3) 39% Sales Revenue 1.2 1.6 25% Operating Profit (0.3
Slide 18: Research and Development
RESEARCH AND DEVELOPMENT For personal use only Long-term investment in products R&D Expenditure ($m) Ongoing research and development expenditure is central to the Objective strategy, with total expenditure of >$100m over the past decade. Cumulative R&D Annual R&D 115.6 Investment across all product
Slide 19: Revenue & EBITDA
REVENUE & EBITDA For personal use only Consistent revenue growth Revenue ($m) Revenue growth of 10% for 1HY2018. Recurrent Revenue Total Revenue 63 Recurring and predictable revenue 50 50 Across our portfolio, we are transitioning from a perpetual 33 30 right to use model to subscription based contr
Slide 20: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION For personal use only Strong cashflow generation Cash Flow 1HY2018 ($m) Operating cash flow for 1HY2018 was $8.9m, representing 153% of EBITDA for the period 0.2 Stable financial position (1.6) Cash balance at 31 December 2017 was $20.5m vs. (0.6) $10.7m at 31 December 20
Slide 21: Contents
For personal use only CONTENTS 1 STRATEGY / BUSINESS UPDATE 2 BUSINESS LINE HIGHLIGHTS 3 FINANCIAL PERFORMANCE 4 GROWTH STRATEGY
Slide 22: Growth Strategy
GROWTH STRATEGY For personal use only We will continue to grow by enabling improved governance and efficiency in the organisations relied upon by our community 1 Expand solutions within customers 2 Grow number of customers 3 Geographic expansion 4 Innovate 5 Acquire Leverage deep customer Attract ne
Slide 23: Better Business
se only | For personal u BETTER BUSINESS Objective »>
Slide 24: Safe Harbour
SAFE HARBOUR For personal use only This document is provided to recipients for information purposes only. This document has not been filed, lodged, registered or approved in any jurisdiction and recipients should keep themselves informed of, comply with and observe all applicable legal and regulator