Slide 1: Presentation by Executive Chairman
Commercial in Confidence For personal use only 24 November 2015 Company Announcements Officer Australian Securities Exchange Limited Exchange Centre, 20 Bridge Street SYDNEY NSW 2000 BY ELECTRONIC LODGEMENT TECHNOLOGY ONE LIMITED – PRESENTATION BY EXECUTIVE CHAIRMAN Please find attached a copy of th
Slide 2: 2015 Full Year Results
24-Nov-15 For personal use only 2015 Full Year Results Full year ending 30 September 2015 Adrian Di Marco, Executive Chairman 24 Nov 2015 Commercial in confidence Commercial in confidence FINAL Disclosure Statement Technology One Ltd Full Year Presentation - 24 Nov 2015 Technology One Ltd (ASX: TNE)
Slide 3: Results Summary
24-Nov-15 For personal use only Agenda • Results • Significant Achievements • Outlook for Full Year • Long Term Outlook Appendix • Technology One Overview Enterprise software as a service Results Summary FY15 FY14 Variance % Revenue $218.7m $195.1m 12% Initial Licence Fees $49.3m $42.0m 17% Total Co
Slide 4: Margin Analysis
24-Nov-15 Margin Analysis For personal use only The TechnologyOne Cloud impacted our margins significantly Company FY15 Company Cloud Excl. Cloud Revenue $218.7m $4.1m $214.6m Profit $46.5m ($2.5m) $49.0m Margin % 21% (62%) 23% FY14 Company Cloud Excl. Cloud Revenue $195.1m $1.4m $193.7m Profit $40.
Slide 5: Top End of Full Year Guidance Achieved
24-Nov-15 Top End of Full Year For personal use only Guidance Achieved Percentage Profit Growth by Year NPAT 2015 - $35.8m, up 16%, Compound growth 15% 18% Full Year Guidance 16% 15% 14% Guidance 10% to 15% growth Continuing profit growth of 10% to 15% 12% 10% 10% Profit Before Tax up 16% 8% Pro
Slide 6: Total Dividend Up 8%
24-Nov-15 Total Dividend Up 8% For personal use only Dividend Dividends for the 2015 year: 10.00 UP 8% 9.00 Compound Growth 9% 8.00 Half 1 2.15 cps up 10% (paid) Cents per share 7.00 Half 2 4.63 cps up 10% (declared) Special Div 6.00 (cps) Total 6.78 cps up 10% 5.00 Special 2.00 cps (as per last yea
Slide 7: R&D Expenses up 8%, fully expensed
24-Nov-15 R&D Expenses up 8%, fully expensed For personal use only R&D Excl. Acquisitions R&D Incl. Acquisitions UP 8%, UP 7%, $40.5M $41M 45 45 Compound Growth 6% Compound Growth 7% 40 40 35 35 30 30 25 25 #039;m #039;m 20 20 15 15 10 10 5 5 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 R&D1 expe
Slide 8: Cash Flow
24-Nov-15 Cash Flow Sep-15 $ '000 Sep-14 $ '000 Var % EBIT 46,494 38,684 7,810 20% For personal use only Depreciation & Amortisation 4,157 4,791 (635) (13%) Operating Cash Flow ($37.6m), has improved Change in working Capital substantially over the full year (Increase) / Decrease in Debtors 1 (6,416
Slide 9: Results – Key Metrics
24-Nov-15 Results – Key Metrics For personal use only Full Year 2015 v Full Year 2014 FY15 FY14 Variance % Full Year 2015 v Full Year 2014 FY15 FY14 Variance % EPS (cents) 11.57 10.06 15% ROE Return on equity 30% 30% Dividends (cents) Adjusted return on equity1 63% 76+% Standard 6.78 6.16 10% Specia
Slide 10: New Customers for 2015 (58)
24-Nov-15 New Customers for 2015 (58) For personal use only Anglican Church Diocese of Perth Freedom Aged Care Pty Ltd Port Arthur Historic Site Management Authority Annecto Inc Gladstone Area Water Board Qantas Credit Union AS Bryden Heathgate Resources Pty Ltd Royal Australian College of General P
Slide 11: Cloud Service Fees continue to grow strongly
24-Nov-15 Cloud Service Fees continue to grow strongly: $8m, up 100% For personal use only $8.0M Target for Dec 2015 was: 9.0 UP 347%, ($6.2M) $8m Contract Value (vs $4.1m H1) 8.0 7.0 Strong momentum to continue in future years 6.0 $4.1M UP 200%, ($2.7M) FY14 5.0 #039;m Target for Dec 2016 is: 4.0 $16m
Slide 12: Consulting Revenue inc Plus up 3%
24-Nov-15 Consulting Revenue inc Plus up 3% ($2.2m) For personal use only Product Consulting Plus UP 11%, $55.4M 60 25 Compound Growth 13% Compound Growth 1% 50 20 DOWN 26%, $10.2M 40 15 #039;m #039;m 30 10 20 5 10 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 20
Slide 13: Licence Fee Contribution - Vertical Market
24-Nov-15 Licence Fee Contribution - Vertical Market For personal use only Project Intensive, $818K, 2% Corporate, $1.2M, 2% Financial Services, $2.4M, 5% Local Government, $15.3M, Government, $4.8M, 10% 31% Asset Intensive, $3.4M, 7% Health & Community Services, $9.5M, 19% Education, $11.9M, 24% Li
Slide 14: Ci Anywhere and TechnologyOne Cloud
24-Nov-15 For personal use only Ci Anywhere Enterprise software, incredibly simple Any device. Any where. Any time. Early adopters in progress, positive feedback Front Office mobile apps now completed Deliver all remaining functionality on this platform by mid 2017 New strategy to transition
Slide 15: TechnologyOne Cloud
24-Nov-15 For personal use only TechnologyOne Cloud Expect a smooth transition of our business to the Cloud over next 5+ years Significant benefits for us as we transition our business to the Cloud - Streamline our business, reduce costs - Reduce time to market - Increase innovation and creativi
Slide 16: Acquisition Strategy
24-Nov-15 Acquisition Strategy For personal use only • TechnologyOne is not an acquisition driven business - Prefer organic growth because of the significant cost, time, effort and management distraction that accompanies an acquisition. • TechnologyOne considers acquisitions when the opportunity ari
Slide 17: JRA Acquisition (Post Sept 30th)
24-Nov-15 JRA Acquisition (Post Sept 30th ) For personal use only • TechnologyOne had worked with a Strategic Asset Management Partner for our Local Government and the Asset Intensive markets (21 customers) • This partnership was terminated on 24/8/15 • Sought a new partner who could add significant
Slide 18: UK
24-Nov-15 UK For personal use only • Relocated Operating Officer from Australia to the UK • 9 new customers of which 8 are on the TechnologyOne Cloud • Total of 26 customers in the UK now • Critical mass will require 40+ customers • Our strategy is to move to the ‘blue ocean’ • Critical we bring our
Slide 19: Remuneration Framework
24-Nov-15 Remuneration Framework For personal use only • Existing remuneration framework critical to our success over last 25+ years Quantum of TechnologyOne executive pay is in the mid quartile of our peers Proven to be very effective • Engagement with independent advisors has necessitated sign
Slide 20: Outlook for 2016 Year
24-Nov-15 For personal use only Agenda Results Significant Achievements • Outlook for Full Year • Long Term Outlook Appendix • Technology One Overview Enterprise software as a service Outlook for 2016 Year Continuing strong growth • The enterprise software markets has been one of the most resili
Slide 21: Outlook for 2016 Year
24-Nov-15 For personal use only Outlook for 2016 Year Full Year - Strong Profit growth to continue in 2016 We expect to see strong continuing growth in licence fees, revenue and profit This year the sales pipeline is once again weighted strongly to the second half, so we expect the first half of
Slide 22: Long Term Outlook Net Profit Margin Before Tax
24-Nov-15 For personal use only Agenda Results Significant Achievements Outlook for Full Year • Long Term Outlook Appendix • Technology One Overview Enterprise software as a service Temporary hiatus due to Cloud loss of $2.5m on Revenues of 4.1m Refer Margin Analysis slide Long Term Outlook Ne
Slide 23: Controlled R&D Growth
24-Nov-15 Controlled R&D Growth For personal use only 2011 Model for R&D Expense Growth (excluding acquisitions) 70 Historical Compound $67m 2015 growth was 7% Growth 16% 2011 Model, shows 60 savings of $20m/year 2014 growth was 6% Model Compound Growth 8% in year 5 (2016) 50 2013 growth was 6% 2012
Slide 24: TechnologyOne Cloud Growth to 2022
24-Nov-15 TechnologyOne Cloud Growth to 2022 For personal use only #039;m Annual Contract Value 160 $143.0M Up 26% 140 $113.9M Compound Growth 69% Up 15% 120 $99.0M Up 25% 100 $79.2M Up 50% 80 $52.8M 60 Up 65% $32.0M 40 Up 100% $8.0M $16.0M Up 264% Up 100% 20 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 F
Slide 25: Positioned well for the future…
24-Nov-15 Positioned well for the future… For personal use only Agenda Results Significant Achievements Outlook for Full Year Long Term Outlook Appendix • Technology One Overview Enterprise software as a service 24
Slide 26: Australia's largest enterprise software company
24-Nov-15 Australia’s largest enterprise software company For personal use only Continually profitable Invest$41m+ For over 24 years Back into R&D Profit Formed in $47m Largest 1987 R&D centre Revenue 1000+ in Australia $219m employees 300+ developers Cash $76m 1000+ Market Capitalisation Corporate,
Slide 27: Financially very strong / The Competitive Landscape
24-Nov-15 Financially very strong For personal use only • Cash and Equivalents $75.5m • Return on Equity 30+% • Adjusted Return on Equity² 63% • Debt/Equity 2% • Interest Cover 309 • Continually paid dividends since 1996 (20 years) • Continually profitable since 1992 (24 years) As at 30th Sept 2015
Slide 28: What makes us unique: Our enterprise vision
24-Nov-15 For personal use only What makes us unique What makes us unique… Our enterprise vision We are one of only a few global enterprise vendors • Suite of 14 products • Deeply integrated • Best of Breed functionality • Common platform • Consistent user interface The power of a single, integrated
Slide 29: What makes us unique: The power of one
24-Nov-15 For personal use only What makes us unique What makes us unique… The power of one We do not use implementation partners or resellers We take complete responsibility for building, marketing, selling, implementing, supporting and running our enterprise solution for each customer to guarantee
Slide 30: We focus on eight key markets
24-Nov-15 What makes us unique… For personal use only We focus on eight key markets… • Deep understanding and engagement in our markets • Deeply integrated preconfigured solutions • Proven practice • Streamlined implementations • Reduce time, cost and risk We sell to asset and service intensive orga
Slide 31: What makes us unique: The power of evolution
24-Nov-15 For personal use only What makes us unique What makes us unique… The power of evolution Substantial investment into R&D each year • New releases encompass new technologies, concepts and innovations • Configuration and not customisation Green screen Client server Web based Cloud computing &
Slide 32: TechnologyOne Cloud
24-Nov-15 TechnologyOne Cloud For personal use only Enterprise software as a service • We run our own enterprise software through the cloud • We take responsibility to provide a simple, cost effective and highly elastic model of computing • Unique mass production model delivers economies of scale an
Slide 33: TechnologyOne SaaS Mass Production
24-Nov-15 Economy of scale TechnologyOne SaaS - Massively scalable, Highly efficient , Cost effective Highly resilient & fault tolerant Mass Production For personal use only Elastic - add capacity dynamically Significant cost savings Future proof - We invest millions annually to make our pro
Slide 34: Other Facts / Robust Revenue Model
24-Nov-15 Ci Anywhere For personal use only Enterprise software, incredibly simple • Embraces smart mobile devices including iPad, iPhone and Android • Allows users to flow across any and all devices during the course of their day • Consumer concepts deliver powerful enterprise software that is incr
Slide 35: Robust Revenue Model
24-Nov-15 Other Facts For personal use only Diversity of revenue streams from multiple: • Products 14 • Vertical markets 8 • Geographies 12 - All states of Australia, New Zealand, South Pacific, Asia and UK Strong, very loyal blue chip customer base • We provide a mission critical solution – ‘sticky
Slide 36: Our Vision
24-Nov-15 Robust Revenue Model For personal use only Initial Buy Based on: No of Users, Initial Licence Implementation Service Annual Licence Annual Licence Annual Licence …. Products & Modules Buy Addn Users Initial Licence Annual Licence Annual Licence Annual Licence …. Additional Fee Buy Addn Mod
Slide 37: Our Vision
24-Nov-15 Our Vision Clear & focused vision… Transforming business, For personal use only making life simple 36