Slide 1: FY17 H1 Investor Presentation
For personal use only FY17 H1 INVESTOR PRESENTATION Objective Corporation Limited – ASX OCL
Slide 2: FY17 H1 Highlights
FY17 H1 HIGHLIGHTS For personal use only REVENUE $ 30 M 33 % Double digit revenue growth in all businesses ECM operating margins of 23% PROFIT MARGIN 12.2 85 Reduced operating losses in Keystone and Connect % % Trapeze performing in line with expectations >20% of revenue invested in R&D – fully expe
Slide 3: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 PURPOSE 3 PRODUCTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
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: Delivering Outcomes to Customers
DELIVERING OUTCOMES TO CUSTOMERS CHALLENGES OUTCOMES For personal use only PROVEN SOLUTIONS DEMONSTRATED EXPERTISE IMPLEMENT EDUCATE BE MORE POLICY GOALS RESPONSIVE TO ACHEIVED STAKEHOLDER’S NEEDS CONSULT MANAGE SUPPORT IMPROVED FINANCIAL MEET BUDGETRY TRUSTED RESULTS CONSTRAINTS PARTNERS CUSTOMER S
Slide 6: Where We Work
WHERE WE WORK 273 3 12 For personal use only Sydney, Australia Maidenhead, UK Palmerston North, NZ EMPLOYEES DEVELOPMENT LABS LOCATIONS 1 Sydney 2 Brisbane 12 3 Canberra 11 4 Melbourne 5 Adelaide OUR CUSTOMERS 6 Perth 7 Wellington, NZ 1ORGANISATIONS ,847 8 Palmerston North, NZ 9 Singapore 10 Washing
Slide 7: Corporate Overview
OCL:ASX CORPORATE OVERVIEW For personal use only 1987 OCL SHARE PRICE HISTORY MAJOR SHAREHOLDERS FOUNDED 2.8 As at last public reporting date (14th September 2016) No. of Ordinary % of Listed 52 week range: Name Shares Held Shares $1.40 - $2.33 2.3 2000 IPO L I STED TBW Trustees Limited 62,000,000 6
Slide 8: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 PURPOSE 3 PRODUCTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 9: Investing in Outstanding Solutions
INVESTING IN OUTSTANDING SOLUTIONS For personal use only RESEARCH & DEVELOPMENT INVESTMENT Cumulative R&D Annual R&D 102.4 96.2 Increasing 64.3 74.0 84.9 leads to… Outstanding investment products & 54.9 45.8 36.5 in R&D 17.4 27.1 9.6 9.4 9.3 9.1 9.4 9.7 11.0 11.3 solutions 8.7 6.2 8.8 FY07 FY08 FY09
Slide 10: Delivering Value to Customers
DELIVERING VALUE TO CUSTOMERS For personal use only Public Sector Local Government Financial Services & Insurance Healthcare Energy & Infrastructure EXAMPLES OF CUSTOMERS’ ACHIEVEMENTS 15 DAYS TO 4 80% 98% OF ONKPI’s TIME DELIVERY AUTOMATION DOUBLED JUST HOURS 40% 80% ACHIEVED OF MINISTERIALS REDUCT
Slide 11: We Build Long Term Customer Relationships
WE BUILD LONG TERM CUSTOMER RELATIONSHIPS For personal use only
Slide 12: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 PURPOSE 3 PRODUCTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 13: Objective Products
OBJECTIVE PRODUCTS For personal use only Leverage the power of Objective Inform and Implement robust information governance with a Streamline content driven processes accessing Objective Perform to manage information and document repository that works where users work information from any major repo
Slide 14: Objective ECM Financial Summary
Leverage the power of Objective Inform and Objective Perform to manage information and processes across the enterprise For personal use only FINANCIAL SUMMARY – A$m FY17 H1 FY16 H1 % CHANGE SALES REVENUE 25.0 20.0 25% Automating core processes: Ministerial Correspondence HR On-boarding OPERATING PRO
Slide 15: ECM Business Highlights
Leverage the power of Objective Inform and Objective Perform to manage information and processes across the enterprise For personal use only BUSINESS HIGHLIGHTS Launch of ECM 10 • Major generational upgrade • Significantly enhanced user experience Launch of Objective Perform Deep integration with •
Slide 16: NSW Department of Premier and Cabinet
For personal use only On average, we’ve reduced turnaround times in some approval process from 10 days to 2. David Schneider, CIO, NSW Department of Premier and Cabinet NSW Department of Premier and Cabinet fosters public sector reform, leading by example Leading the charge in optimising public sect
Slide 17: Objective Connect Financial Summary
Extend information governance to the cloud and free users to work with anyone outside your organisation – securely and with full transparency For personal use only FINANCIAL SUMMARY – A$m FY17 H1 FY16 H1 % CHANGE SALES REVENUE 0.7 0.5 40% CHIEF HEALTH MINISTER OPERATING PROFIT (1.4) (1.5) 7% OPERATI
Slide 18: Connect Business Highlights
Extend information governance to the cloud and free users to work with anyone outside your organisation – securely and with full transparency For personal use only BUSINESS HIGHLIGHTS 1600000 CONNECT USAGE GROWTH 70000 1,528k Meeting Public Sector demand 1,514k 1400000 60000 1,459k • Secure, collabo
Slide 19: National Blood Authority implements secure collaboration
For personal use only There was no other option, we wanted something that would integrate into HP TRIM. Objective Connect was the only product that hit that mark. Peter O’Halloran, Executive Director and CIO, National Blood Authority National Blood Authority implements secure collaboration Working a
Slide 20: Objective Keystone Financial Summary
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 FY17 H1 FY16 H1 % CHANGE SALES REVENUE 2.7 2.0 35% OPERATING PROFIT (0.2) (1.0) 80% OPERATING MARGIN n/a n/ a 20
Slide 21: Keystone Business Highlights
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 BUSINESS HIGHLIGHTS Increasing market adoption in Australia amongst financial services clients, bolstering the existing government customer b
Slide 22: States of Guernsey consultation system
For personal use only Objective’s simple and efficient consultation system empowers the community to be fully informed and contribute to the Plan. Damon Hackley, Strategic Planning Officer, States of Guernsey A simple and efficient consultation system that complies with the required laws while maxim
Slide 23: Disclosure document authoring and governance
For personal use only Improve efficiency and deliver governance to the process of authoring, verifying and publishing disclosure documents. As portfolios expand, regulations change and controls, freeing Product Managers to focus the complexity of disclosure increases, the on developing innovative pr
Slide 24: Objective Trapeze Financial Summary
Digitally transform plan reviews and assessments For personal use only FINANCIAL SUMMARY FY17 H1 FY16 H1 % CHANGE MARKET POSITION SALES REVENUE 1.6 n/a n/a IN LOCAL COUNCILS OPERATING PROFIT 0.3 n/a n/a AUSTRALIA NEW ZEALAND OPERATING MARGIN 19% n/ a 130 49 UNITED KINGDOM CANADA GROWING FOOTPRINT 24
Slide 25: Trapeze Business Highlights
Digitally transform plan reviews and assessments For personal use only BUSINESS HIGHLIGHTS Objective Trapeze is the de facto standard in NZ local government for electronic processing of building consents and these numerous use cases support growth in the Australian market. Trapeze has almost 1,000 c
Slide 26: Sutherland Shire Council determines more applications
For personal use only Once the Building & Planning department goes digital, the rest of the organisation follows. Simone Plummer, Manager Development Assessment and Certification, Sutherland Shire Council In one year, Sutherland Shire Council determined 36% more development applications with no incr
Slide 27: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 PURPOSE 3 PRODUCTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 28: 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 29: Valuable Global Partnerships
VALUABLE GLOBAL PARTNERSHIPS Global partnerships with leading market vendors provides increased product development opportunities, and For personal use only unmatched distribution capabilities Access to market-share that was previously unavailable – • Scale – integration of Objective products with O
Slide 30: Contents
For personal use only CONTENTS 1 CORPORATE OVERVIEW 2 PURPOSE 3 PRODUCTS 4 GROWTH STRATEGY 5 FINANCIAL OVERVIEW
Slide 31: Growing Across All Business Lines
GROWING ACROSS ALL BUSINESS LINES For personal use only Half year ended (A$M) FY17 H1 FY16 H1 % Change Sales Revenue 25.0 20.0 25% Operating Profit 5.7 3.8 50% Sales Revenue 2.7 2.0 35% Operating Profit (0.2) (1.0) 80% Sales Revenue 0.7 0.5 40% Operating Profit (1.4) (1.5) 7% Sales Revenue 1.6 n/a n
Slide 32: Research and Development
RESEARCH AND DEVELOPMENT Long-term investment in products R&D Expenditure ($m) For personal use only Ongoing research and development expenditure is central to the Objective strategy, with total expenditure of >$100m over the past decade. Cumulative R&D 102.4 Annual R&D Major product releases 96.2 F
Slide 33: Revenue & Profit Margin
REVENUE & PROFIT MARGIN Strong revenue growth Revenue ($m) For personal use only 33% increase in FY17 H1 vs. FY16 H1 with further Total Revenue revenue improvement expected in FY17 H2 Recurrent Revenue 49 50 50 40 41 Recurring and predictable revenue 30 High proportion of recurring revenue (62% in F
Slide 34: Cash Flow Generation
CASH FLOW GENERATION Cash generative business model Operating Cash Flow ($m) For personal use only Objective’s business model has consistently generated positive operating cash flow and has not raised additional capital since listing 9.0 8.5 6.9 6.1 FY16 cash flow 5.8 reflects timing of Growing divi
Slide 35: Great Governance, Better Business
For personal use only 5 GREAT GOVERNANCE 9? BETTER BUSINESS Objective
Slide 36: 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