Slide 1: 2003 Results Presentation
Private and Confidential www. TechnologyOneCorp.com 2003 Results Presentation Technology One intelligent eBusiness Solutions March 2003 Adrian_DiMarco@TechnologyOneCorp.com Chief Executive Officer
Slide 2: 2003 Half Year Results
@ 2003 Half Year Results @ Significant Achievements Last six Months @ Outlook Technology Intelligent One eBusiness
Slide 3: 2003 Half Year Results
2003 Half Year Results m™ Record revenues: up 13% mm Expenses up 28% m Record R&D expenditure: up 12% w Profit down 18% Technology Intelligent One eBusiness
Slide 4: 2002 Actual v 2003 Actual
2002 Actual v 2003 Actual m Business growing strongly in a difficult market a Revenue (ex interest) up 13% i The problem a Revenue growth below our expected target of 20+% « Committed to a substantial investment program 12 months ago ~ Increased R&D ~ Increased staff levels in our regional service n
Slide 5: 2002 Actual v 2003 Actual
2002 Actual v 2003 Actual H1 2002 v 2003 $ (000): $ (G00) interest) 23,958 2679 Expenses 14,332 (3100) EBITDAR. 9,626, (421) R&D 4,645 EBITDA, : 981 Depreciatic n ~~ (A8%) (18%) (16%) AS) Net Profi it Before Tax Margin (Total Revenue) Net Profit ‘Aft Tax | Margi (Total Revenue) R&D as Percentage of
Slide 6: Actions Taken
Actions Taken m Reset our costs to a lower Revenue Growth target for the next two years @ Maintain existing staff levels - Minimal new staff planned for this year a Complete existing R&D projects — realise value a People are our major asset — maintain a positive culture a Staff redeployed to where t
Slide 7: 2002 Actual v 2003 Actual
2002 Actual v 2003 Actual m Balance sheet strong a Cash * : $17.9m a Debt/Equity : 3.7% a Operating Cashflow : $4.5m (vs NPAT $3.16m) m Transparency of results ~— all R&D fully expensed m On target for: a Return on Equity of 18% a Adjusted Return on Equity of 36% *Cash includes short term investment
Slide 8: Comparative Performance - Revenues
Comparative Performance -.Revenues, Epicor Peoplesoft 300,000 200,000 100,000 2,500,000 2,000,000 1,500,000 Technology One 0 1999 2000 2 Oracle 1999 2000 2001 2002 SAP 12,000,000 8,000,000 10,000,000 , , : 8.000.000 6,000,000 } 6,000,000 4,000,000 4,000,000 2,000,000 2,000,000 0 0 1999 2000 2001 ~=—
Slide 9: Comparative Performance
Comparative Performance Competitor Revenue Comparisons (1999 as base) —&— Oracle 200.0% 224 ' ee o —H Peoplesoft & 150.0% fe '@ 100.0% SAP oe mt 5 50.0% Hi Technology 4 One 2 0.0% —®— JD Edwards 5 a -80.0% —®- Epicor -100.0% 2000 2001 2002 —® Sun Systems Year Technology Intelligent One eBusiness
Slide 10: Comparative R&D Expenditure
Comparative R&D Expenditure 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% % Change from base in 1999 -50.0% -100.0% + Competitor R&D Comparisons (1999 as base) 2000 2001 2002 —@Oracie —# Peoplesoft SAP Hi Technology One —eJ D Edwards —@—GEAC —#® Epicor tii Sun Systems Year Technology One Intelligent eBusin
Slide 11: Significant Achievements
Significant Achievements Last Six Months w Signed 25 new contracts in the half year a Strong performance in a difficult market! wm Finance One Suite continues to perform strongly a Almost all deals involved Finance One m Retail One gathers traction a One new contract won: ~ Salvation Army (Southern
Slide 12: Significant Achievements
Significant Achievements Last Six Months a@ Proclaim One a Four new contracts won: ~ City of Burnside ~ City of Port Adelaide/Enfield ~ City of Stirling ~ Marlborough District Council a Leading supplier in Local Government in Australia a Second Council in NZ (Marlborough District Council) a Good opp
Slide 13: Significant Achievements
Significant Achievements Last Six Months i Continued penetration in New Zealand a Four new contracts won: ~ Harbourside (NZ) ~ Southland Building Society (NZ) ~ State Services Commission (NZ) ~ Marlborough District Council (NZ) a Good opportunities going forward t Continued penetration in Malaysia a
Slide 14: Significant Achievements
Significant Achievements Last Six Months m= Continuing success with Project Services a Three new contracts won: ~ Access Queensland ~ Queensland Office of State Revenue ~ Telwater Pty Ltd Technology Intelligent One eBusiness
Slide 15: New Contracts By Sector
New Contracts By Sector a Local Government a Baulkham Hills Shire Council a City of Burnside a City of Port Adelaide/Enfield a City of Stirling a Marlborough District Council a State/Federal Government a Environmental Protection Authority of Victoria » Harbourside New Zealand a Public Trustee Queens
Slide 16: New Contracts By Sector
New Contracts By Sector = Corporate a Australian Fast Foods Pty Limited (Red Rooster) a Australian Ethical Investment a Australian Wine and Brandy Corporation a BP — Valley Fuel Pty Ltd a Enertrade a Prime Infrastructure a Southland Building Society NZ a Teliti Computers Sdn Bhd a Orbit Software Tec
Slide 17: New Contracts By Sector
New Contracts By Sector = Retail a Salvation Army (Southern Region) m= Higher Education a Insearch Technology Intelligent One eBusiness
Slide 18: Significant Achievements
Significant Achievements Last Six Months a Continuation of organisational restructure: “Act Locally, Think Globally” a Move from Departmental to Regional reporting lines - done a Remove head-office General Managers - done a Appointed Regional Managers - done a Appointed Product Managers - done a All
Slide 19: Significant Achievements
Significant Achievements Last Six Months Support Centre Initiative a From the back end to become the front end of our company a Restructured ~ Integrated Help Desk and Development Team as one group - Top line consultants with many years experience with our products — to turnaround information reques
Slide 20: Significant Achievements
Significant Achievements Last Six Months a Continued R&D into: a Finance One Suite R10.2 February 2003 a Retail One and Sales One R10.2 February 2003 a People One R10.2 February 2003 a Proclaim One R9.1 March 2003 a Student One R2.4 August 2003 a ADF.NET R6.0 October 2003 a Continued R&D into new te
Slide 21: Significant Achievements
Significant Achievements Last Six Months m Partnership with EMS Solution for Asset Intensive Industries a City of Stirling a Australian Inland Gas and Water a Redcliffe City Council m Partnership with Chameleon for Advanced Budgeting a National Library a Australian Victorian Arts Center a Pine River
Slide 22: Significant Achievements
Significant Achievements Last Six Months m Share Buy Back a Shares bought back 19,679,092 (6.19%) a Average price 25.13 cents a Total cost $4,944,372 a Improvement to EPS approximately 6.5% Intelligent eBusiness Technology One
Slide 23: Outlook for 2003 Full Year
Outlook for 2003 Full Year w \Ve are on track m Good pipeline for the next half year Technology Intelligent One eBusiness
Slide 24: Looking Forward
Looking Forward mi Post Y2k indigestion a Normal business replacement is approximately every eight to ten years for corporate applications a Aimost 40% of normal business occurred in the two years prior to Y2K Technology Intelligent One eBusiness
Slide 25: Year Business Replacement Cycle for Enterprise Applications
10 Year Business Replacement Cycle for Enterprise Applications Level of Business - 10 Year Cycle —Y2k — Normal 1994 1995 1996 1997 1998 1999 2000 2002 2003 2004 2005 2006 2007 2001 « 40+% business done in two years to Y2K Technology » Expect some improvement in late 2003/2004 year | SIV aTames One «
Slide 26: Outlook for 2004 and 2005
Outlook for 2004 and 2005 m Expect lower level of revenue growth m™ Manage our costs to trend with revenue growth a Limit new staff a Limit salary increases a Tight control of general expenses a Limit R&D growth m@ Translate revenue growth into profit growth Technology One Intelligent eBusiness
Slide 27: Outlook for 2005+
Outlook for 2005+ m Replacement of Y2k systems will begin m The big issue will be customer satisfaction a Those who lose customers vs Those who retain them a Customers are a lot wiser — they have made costly mistakes a We have already started replacing our competitor’s systems Technology Intelligent
Slide 28: Outlook for 2005+
Outlook for 2005+ m What we are doing: a Keep our customers happy — Support Centre Initiative ~ Decentralised organisational structure — allow us to act locally - Account Management initiative ~ Regular customer surveys - Regular user conferences ~ Our regional consultants — not using third parties
Slide 29: Outlook for 2005+
Outlook for 2005+ w Finance One a Replacement of systems because of dissatisfaction in 2 Years+ a Finance One will perform strongly because of its strong functionality, customer base and availability of Finance One.NET @ Retail One a Older systems will need to be replaced a Competitors: old technolo
Slide 30: Outlook for 2005+
Outlook for 2005+ ti People One a Older systems will need to be replaced « Competitors: old technology a We need to build a strong reference base and round-off the product a Challenge: Human Resources is weak - needs to be addressed in the next two years a Needs to be managed carefully because of R&
Slide 31: Outlook for 2005+
Outlook for 2005+ a@ Proclaim One a Good opportunities going forward in both Australia and New Zealand a Student One a Limited opportunities in Australia — considering geographical expansion into Asia w New geographies for expansion a Considering UK m New markets being considered a Professional serv
Slide 32: 2003 Results Presentation
Private and Confidential www. TechnologyOneCorp.com 2003 Results Presentation Technology One intelligent eBusiness Solutions March 2003 Adrian_DiMarco@TechnologyOneCorp.com Chief Executive Officer