Slide 1: FY17 Investor Presentation
For personal use only FY17 INVESTOR PRESENTATION Objective Corporation Limited – ASX OCL
Slide 2: FY17 Highlights
FY17 HIGHLIGHTS REVENUE For personal use only $ 62.6M 25% Double digit revenue growth in all businesses EARNINGS PER SHARE Reduced operating losses in Keystone and Connect Trapeze performing in line with expectations 9 CPS 55% EBITDA increased 67% to $10.5m OPERATING CASH FLOW >20% revenue invested
Slide 3: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 #OUTSTANDING SOFTWARE 3 LINE OF BUSINESS RESULTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 4: 30 Years of Success 1987-2017
For personal use only YEARS OF SUCCESS 1987 - 2017
Slide 5: 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 5
Slide 6: OCL:ASX Corporate Overview
OCL:ASX CORPORATE OVERVIEW 262 For personal use only RECENT SHARE PRICE HISTORY 2.80 2.60 EMPLOYEES OUR CUSTOMERS 2.40 1ORGANISATIONS ,942 2.20 12 2.00 1.80 68 COUNTRIES 1.60 1.40 LOCATIONS 1 85,000 1.20 – 3 1.00 USERS Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Sydney, Australia
Slide 7: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 #OUTSTANDING SOFTWARE 3 LINE OF BUSINESS RESULTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 8: Investing in Outstanding Solutions
INVESTING IN OUTSTANDING SOLUTIONS For personal use only RESEARCH & DEVELOPMENT INVESTMENT Increasing leads to… Outstanding investment products & in R&D solutions DELIVERING OUTSTANDING so that we can… SOLUTIONS IS CENTRAL TO delivering… EVERYTHING WE DO GROUP REVENUE The best Financial outcomes for
Slide 9: Product Launches FY2017
PRODUCT LAUNCHES FY2017 Continued investment in R&D has delivered releases across the portfolio… For personal use only Keystone 5 ECM 10 Objective Insights Objective Perform Connect for SharePoint Multi-workgroups Perform for HPE Content Manager Trapeze 10 9
Slide 10: Objective Design Language
OBJECTIVE DESIGN LANGUAGE …with a unified user experience across products For personal use only 10
Slide 11: Delivering Value to Customers
DELIVERING VALUE TO CUSTOMERS For personal use only Public Sector Local Government Financial Services & Insurance Healthcare Energy & Infrastructure Examples of customers’ achievements 80% 98% OF ONKPI’s TIME DELIVERY AUTOMATION DOUBLED 40% 80% ACHIEVED OF MINISTERIALS REDUCTION IN (increased from (
Slide 12: New Customers FY2017
NEW CUSTOMERS FY2017 80 For personal use only ORGANISATIONS
Slide 13: Customer Retention
CUSTOMER RETENTION Focus on delivering long-term value to customers maintained customer churn <1% For personal use only 50 UPGRADES 50% CUSTOMERS ON ECM 10 43 MANAGED SERVICES CONTRACTS 13
Slide 14: Customer Opportunity
CUSTOMER OPPORTUNITY Seamless integration and a unified user experience creates opportunities to increase the breadth of For personal use only solutions we offer our customers 14
Slide 15: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 #OUTSTANDING SOFTWARE 3 LINE OF BUSINESS RESULTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 16: Manage information and processes across the enterprise
Manage information and processes across the enterprise For personal use only FINANCIAL SUMMARY – A$m BUSINESS HIGHLIGHTS Record financial performance FY17 FY16 % CHANGE • Growth across perpetual and subscription licence revenue SALES REVENUE 52.0 43.4 20% • Continued to deliver $10m+ End User Comput
Slide 17: Manage information and processes across the enterprise
Manage information and processes across the enterprise For personal use only Enhanced browser based functionality across devices. Automate content-driven business processes with Objective Perform. Objective Insights for management reporting dashboards. Integrate with content management systems such
Slide 18: Secure external collaboration
Secure external collaboration For personal use only FINANCIAL SUMMARY – A$m BUSINESS HIGHLIGHTS Strong revenue growth driven by customer’s increasing intensity FY17 FY16 % CHANGE and frequency of use of Workspace tools SALES REVENUE 1.5 1.1 40% • Network effect developing as Objective Connect become
Slide 19: Secure external collaboration: ARR, users, connections
Secure external collaboration For personal use only Connections $2.08m Users $1.84m ARR $1.72m $1.72m $1.68m $1.62m $1.65m $1.51m $1.51m $1.51m $1.52m $1.55m $1.44m 56,014 $1.34m 53,943 51,519 49,803 $1.18m $1.21m 45,678 47,475 42,861 44,256 $1.08m 40,790 38,122 2.22m 36,851 33,779 35,105 1.98m 30,9
Slide 20: Keystone: Author, verify and publish on-brand content
Author, verify and publish on-brand content, with ease. Engage with stakeholders or the community to gather critical feedback and input. For personal use only FINANCIAL SUMMARY BUSINESS HIGHLIGHTS Significant new clients - predominately in the Financial Services market FY17 FY16 % CHANGE • 6 out of
Slide 21: Keystone market position and opportunity
Author, verify and publish on-brand content, with ease. Engage with stakeholders or the community to gather critical feedback and input. For personal use only Largest Fund Managers in Australia Market Coverage by Total Assets (US$ Billion) Top 100 Investment & Insurance companies in Australia 400 Cu
Slide 22: Trapeze: Digitally transform plan reviews and assessments
Digitally transform plan reviews and assessments For personal use only FINANCIAL SUMMARY BUSINESS HIGHLIGHTS Launch of Trapeze 10 - completely re-designed user experience FY17 FY16 % CHANGE • Built within the Objective Design Language (ODL) for seamless SALES REVENUE 2.9 1.0* n/a integration into ot
Slide 23: Market position in local government
Digitally transform plan reviews and assessments For personal use only MARKET POSITION IN LOCAL GOVERNMENT LAUNCH OF TRAPEZE 10 AUSTRALIA 143 COUNCILS 31 % market share NEW ZEALAND 31% from FY16 51 COUNCILS 76% market share UNITED KINGDOM 6% from FY16 300+ COUNCILS 23
Slide 24: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 #OUTSTANDING SOFTWARE 3 LINE OF BUSINESS RESULTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 25: 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 New products for existing markets Leverage deep cust
Slide 26: Expanding Our Addressable Market
EXPANDING OUR ADDRESSABLE MARKET Global partnerships with leading market vendors provides increased product development opportunities, For personal use only and unmatched distribution capabilities 26
Slide 27: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 #OUTSTANDING SOFTWARE 3 LINE OF BUSINESS RESULTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 28: Growing Across All Business Lines
GROWING ACROSS ALL BUSINESS LINES For personal use only Half year ended (A$M) FY17 FY16 % Change Sales Revenue 52.0 43.4 20% Operating Profit 13.0 9.6 35% Sales Revenue 5.8 4.2 38% Operating Profit (0.4) (1.2) 67% Sales Revenue 1.5 1.1 40% Operating Profit (2.4) (2.6) 8% Sales Revenue 2.9 1.0* n/a O
Slide 29: Research and Development
RESEARCH AND DEVELOPMENT For personal use only Long-term investment in products R&D Expenditure ($m) Ongoing research and development expenditure is central to the Objective strategy, with total expenditure of 109.0 >$100m over the past decade. 96.2 Product releases across the portfolio in FY2017 84
Slide 30: Revenue & Profit Margin
REVENUE & PROFIT MARGIN Revenue ($m) For personal use only Strong revenue growth Total Revenue Revenue growth of 25% for FY2017, with all business Recurrent Revenue 63 units delivering significant growth. 49 50 50 40 41 Transition to subscription revenue model Across our portfolio, we are maintainin
Slide 31: Cash Flow and Shareholder Returns
CASH FLOW AND SHAREHOLDER RETURNS For personal use only Stable financial position Cash balance at 30 June 2017 was $17m and $26m at Dividend per share (cps) the date of the final results announcement. We continue to have no external borrowings 5.00 CAGR = 21% 3.75 4.00 3.50 Consistent returns to sha
Slide 32: Better Business & Great Governance
For personal use only & GREAT GOVERNANCE 9)? BETTER BUSINESS Objective
Slide 33: 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