Slide 1: Investor Presentation FY2024 Financial Results
Investor Presentation FY2024 Financial Results OBJECTIVE.COM © 2024, Objective Corporation Limited. Commercial in Confidence.
Slide 2: Agenda
AGENDA 01 FY2024 Financial Summary 02 Highlights of the Year 03 Business Line Overview 04 Outlook -2-
Slide 3: FY2024 Financial Highlights
FY2024 Financial Highlights ANNUALISED NET PROFIT REVENUE RECURRING REVENUE ADJUSTED EBITDA AFTER TAX $118m $105m $44m $31m + 6% vs FY2023 + 11% vs FY2023 +66% vs FY2023 + 49% vs FY2023 +15% SaaS ARR vs FY2023 RESEARCH + OPERATING DEVELOPMENT CASH FLOW CASH DIVIDEND $28m $56m $96m 30% of SOFTWARE 12
Slide 4: Transition to 100% subscription software
Transition to 100% subscription software 118 110 107 95 81% Recurring Revenue 70 63 63 62 95 53 70 78 87 100% Subscription 39 43 Software 34 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY Recurring Revenue FY Total Revenue -4-
Slide 5: SaaS revenue drives growth
SaaS revenue drives growth Strong ARR growth over 5 years… …driving SaaS growth Non-Recurring Revenue: 20 CAGR = + 2% 18% CAGR (FY19-FY24) 23 30 27 SaaS: 62 18 53 CAGR = + 31% 105 44 94 18 36 85 74 23 16 57 47 32 32 33 34 USP: CAGR = + 4% 27 29 Upgrade and Support Program (USP) for on-premise custom
Slide 6: Consistent + significant R&D investment
Consistent + significant R&D investment 276 FY2024 RESEARCH + 248 DEVELOPMENT 220 30% OF SOFTWARE REVENUE 157 172 195 143 130 117 106 95 85 76 67 58 48 39 30 43% of all time 21 11 15 R&D investment 3 5 8 1 in last 5 years FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY1
Slide 7: Margin expansion
Margin expansion We continued to invest 30% of software revenue in R&D and increased cash operating margin in FY2024 30 50.0% 40.0% 25 30% 30.0% 20 20.0% 15 10.0% 10 0.0% 5 -10.0% - 13 13 13 16 23 25 27 28 -20.0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Annual R&D Investment R&D Investment as % of So
Slide 8: Agenda
AGENDA 01 FY2024 Financial Summary 02 Highlights of the Year 03 Business Line Overview 04 Outlook -8-
Slide 9: Our DNA
‘OUR DNA Innovation | Quality | Customer Focus Activate
Slide 10: Activate
Activate r = | | a | a | a | = i= e/g € WAT, d Objective
Slide 11: Who we are
Who we are AT OBJECTIVE We create software that makes a difference Edinburgh Using Objective software, thousands of public sector 450 + organisations are shifting to being completely digital. Where our EMPLOYEES customers can work from anywhere; with access to information, Reading GLOBALLY governanc
Slide 12: Our customers
Our customers Deliver national and community valued outcomes They are public sector organisations, NGOs and companies that operate in regulated environments. Set the standards for our built environments Deliver the services that support our communities Uphold peace, justice and the law Manage our we
Slide 13: Permanent demand drivers
Permanent demand drivers Rising expectations, increased scrutiny The market forces that drive demand for our solutions are not subject to economic fluctuations or discretionary spend. They are permanent drivers of demand. Our target markets operate in environments where there is an expectation or le
Slide 14: Outstanding GovTech driving stronger communities and nations
Outstanding GovTech driving stronger communities and nations - 14 -
Slide 15: Sustainable growth
Sustainable growth Sustaining the momentum of our flywheel Delivering outstanding solutions is central to sustaining our momentum. ARR growth fuels opportunity and innovation OUR STRATEGIC PILLARS Invest in our people Build outstanding products Achieve our GTM plans Delight our customers Be ready to
Slide 16: Innovation
Innovation Artificial Intelligence Single, seamless user experience Large language models (LLMs) – Growing market Objective Design Language – consistent, clear acceptance and aligned to Objective’s expertise. and accessible UX. Trust is paramount – Objective uniquely positioned All products – now fe
Slide 17: FY2024 market expansion
FY2024 market expansion Product Innovation New Geographies Operational Excellence Product innovations across all business lines First customer for Objective RegWorks signed in Driving efficiency across the business, optimising have provided opportunity to access the UK; The Gambling Commission in Gr
Slide 18: Nexus conversion can accelerate SaaS growth
Nexus conversion can accelerate SaaS growth Cloud Content Management Broad cross-section of Nexus customers provides Upgrade and Support Program 70 referenceable use cases for market engagement (USP) uplift on Conversion to SaaS ARR Nexus TAM (ARR) value following conversion to Nexus 46 59 Bradfield
Slide 19: Target Addressable Market: Content Solutions
Target Addressable Market Content Solutions Product innovations within the INFORMATION Australia & New Zealand GOVERNANCE Information Governance Platform $1.6 Billion PLATFORM have more than doubled the target addressable market for Content Solutions. $300m – 3Sixty Objective Nexus targets customers
Slide 20: Target Addressable Market: Planning & Building
Target Addressable Market Planning & Building Product innovation allows us to target 780,000 consents p.a. 100% of the NZ market for Build, including larger metro councils and Australia, where Objective Trapeze already has high market share: § Australia: 230 councils with 3000+ professionals 400,000
Slide 21: Target Addressable Market: Regulatory Solutions
Target Addressable Market Regulatory Solutions Entry into the UK region has expanded $300 Million the addressable market for Regulatory Solutions. In both regions, regulators’ use of technology is just scratching the surface, the market is still developing and expanding. Technology adoption rates $1
Slide 22: Agenda
AGENDA 01 FY2024 Financial Summary 02 Highlights of the Year 03 Business Line Overview 04 Outlook - 22 -
Slide 23: Governance + Regulation + Digital Service
Governance + Regulation + Digital Service Content Solutions Planning & Building Regulatory Solutions Accountability that builds Creating tomorrow’s Protecting what matters trust in government communities, today Empowering a digital Encouraging responsible Enabling best-practice government to develop
Slide 24: Content Solutions
Content Solutions Sales Revenue ARR $80.3m $76.1m 5% $76.1m $69.0m 10% FY2024 FY2023 % CHANGE FY2024 FY2023 % CHANGE FY2024 Business Line highlights § Simplified market positioning by consolidated many products into an Information Governance platform. § Adoption of Objective Nexus gathered momentum,
Slide 25: Planning & Building
Planning & Building Sales Revenue ARR $12.3m $11.7m 5% $14.0m $12.2m 15% FY2024 FY2023 % CHANGE FY2024 FY2023 % CHANGE FY2024 Business Line highlights § Lower level of building activity in New Zealand resulted in a drop in development consents submitted, tempering revenue and ARR growth rate. § 40,0
Slide 26: Regulatory Solutions
Regulatory Solutions Sales Revenue ARR $22.2m $21.1m 5% $14.4m $13.0m 11% FY2024 FY2023 % CHANGE FY2024 FY2023 % CHANGE FY2024 Business Line highlights § Increased enterprise-scale opportunities were slower to close, moderating revenue growth rates, but contributing to solid ARR growth. § First cust
Slide 27: Agenda
AGENDA 01 FY2024 Financial Summary 02 Highlights of the Year 03 Business Line Overview 04 Outlook - 27 -
Slide 28: FY2025 Objective Strategic Plan
FY2025 Objective Strategic Plan Mission Outstanding GovTech driving stronger communities and nations Ambition Unparalleled Domain Expertise #1 in Our Markets - New Business Profitable Growth Energy Target ARR growth of 15% INVEST IN BUILD Strategic Pillars ACHIEVE DELIGHT BE READY OUR PEOPLE OUTSTAN
Slide 29: OBJECTIVE.COM
OBJECTIVE.COM © 2024, Objective Corporation Limited. Commercial in Confidence.