Integrated Research Limited · ASX:IRI

Integrated Research — FY2011 Earnings Presentation

18 slides from Integrated Research's earnings presentation, Aug 18, 2011

1. Slide 1: FY2011 Financial Results

   For personal use only Integrated Research Limited FY2011 Financial Results ABN: 76 003 558 449 August 2011 Investor Presentation Providing Business Insight

2. Slide 2: At a glance

   At a glance  22-year heritage in real-time systems management software For personal use only  Developer of Prognosis for high-definition performance monitoring  Extensibility of Prognosis provides IR with sustainable competitive advantage  World-class R&D capability to rapidly develop new produc

3. Slide 3: Our value to customers

   For personal use only Our value to customers  Serving three core markets:  Infrastructure  Communications  Payments  Managing performance of complex, and critical infrastructures  Ensuring continuity of high value, high volume transactions  Trusted by over 600 major enterprises worldwide Prov

4. Slide 4: Financial Results

   For personal use only Financial Results Providing Business Insight™

5. Slide 5: FY11 highlights

   For personal use only FY11 highlights Financial strength IP Telephony growth Profitable and debt-free Over 4.3 million phones monitored Improved conditions in FY11 21 new resellers signed Sales up 52% New license sales up 36% to $25.0M Payments growth Total revenue up 17% to $44.6M Net profit after

6. Slide 6: Financial results

   Financial results 30 June 30 June For personal use only 2011 2010 % change A$000’s A$000’s Licence fees 25,005 18,413 36% Maintenance fees 16,941 17,789 (5%) Consulting fees 2,646 1,999 32% Total revenue 44,592 38,201 17% R&D expenses - net 8,949 8,347 7%  Revenue growth – even with rising Sales, c

7. Slide 7: Balance sheet

   For personal use only Balance sheet 30 June 30 June 2011 2010 $000’s $000’s Cash at bank 11,635 8,396 Current Receivables 14,058 14,548 Development cap. 13,808 13,957 Deferred Revenue 9,259 10,748  No debt  Net assets impacted by stronger AUD Net assets 27,357 24,502 Providing Business Insight

8. Slide 8: Review of operations - products

   For personal use only Review of operations - products Billings by 30 June 30 June % Product Line ($A) 2011 2010 change $000’s $000’s NonStop/Infrastructure 18,830 18,749 1% Payments 2,589 1,071 142% IP Telephony / 17,795 12,161 46% Communications Distributed Systems / 3,455 3,630 (5%)  Strong growt

9. Slide 9: Review of operations - regions

   For personal use only Review of operations - regions Revenue by Geographic 30 June 30 June region (In local 2011 2010 % change currency) $000’s $000’s Americas ($US) 26,489 20,160 31%  Growth in all regions Europe (GBP) 4,416 2,940 50%  Europe up 50% on increased IPT sales  Americas and Asia-Paci

10. Slide 10: Growth Strategy

    For personal use only Growth Strategy Providing Business Insight

11. Slide 11: Growth strategy - new products and services

    Growth strategy - new products and services 3. Consulting services to For personal use only increase product use and penetration, and develop  Implementation, integration and training services repeatable solutions  Customized development  Unique and repeatable solutions  Return on IPT investment

12. Slide 12: R&D spending – new product development

    R&D spending – new product development For personal use only 30 June 30 June 2011 2010 % Change A$000’s A$000’s Gross spending 8,924 8,290 8%  R&D investment in new products and features  Increased R&D productivity Development – 5,655 5,932 (5%)  Improved product quality Capitalised and customer

13. Slide 13: Growth strategy - IPT

    Growth strategy - IPT Worldwide IP Phone Deployment For personal use only Source: Gartner Apr 2011 180 Growth strategy - IPT 160 140  Growth in IPT phone deployment IP Phones (M) 120 100 continues 80  Trend from IPT to Unified 60 Communications (voice, video, 40 messaging, mobility, presence) 20 0

14. Slide 14: Growth strategy - Payments

    For personal use only Growth strategy - Payments Growth strategy – Payments Worldwide Retail Purchase Transactions  Payments growth increasing Source: Nilson 2010 worldwide ~12% CAGR 250  Growth in payment devices and channels 200  Banks depend on payments fees  Strategy: Transations (B) 150  S

15. Slide 15: Growth strategy - more channels to market

    For personal use only Growth strategy - more channels to market Global network of IR offices and value-added resellers Strategic alliances and managed service providers Large Enterprise Enterprise Americas Europe Head Office  Sales  Sales  Marketing  Support  Support  R&D SMB  Finance  AP sa

16. Slide 16: Risk management

    Risk management For personal use only Current Challenges Unfavorable movements in currency exchange rates Volatility of global economic recovery Proactive Management Proactive approach to currency hedging Diversification of risks through multiple product offerings and geographic spread Focus on prod

17. Slide 17: Summary

    Summary For personal use only High growth PAT up 38%, Sales up 36%, Total Revenue up 17% Financial strength Profitable and debt-free Growth strategy Continue to invest in new products in target markets: Communications and Payments Solid foundations Proven products Global tier-one customer base Provi

18. Slide 18: Thank You

    For personal use only Thank You Providing Business Insight

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