Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2005)
22 slides from Integrated Research's shareholder meeting presentation, Nov 15, 2005
Slide 1: Integrated Research Limited 2005 Annual General Meeting
Integrated Research Limited 2005 Annual General Meeting 15 November 2005 ABN: 76 003 588 449 Precise performance monitoring for business-critical systems
Slide 2: Chairman's Address
Chairman’s Address Presentation by: Steve Killelea Precise performance monitoring for business-critical systems
Slide 3: Finance Overview
Finance Overview Presentation by: David Leighton Precise performance monitoring for business-critical systems
Slide 4: FY 2005 Performance
FY 2005 Performance AU$ (000) 2005 2004 % Revenue from Licence Fees 17,726 15,842 12% Revenue from Maintenance 14,877 13,712 9% Total Revenue 33,343 30,332 10% PBT 8,264 7,173 15% NPAT 6,199 4,455 39% Adjusted for FDT reduction 6,199 5,261 18%
Slide 5: Other Key Metrics
Other Key Metrics 2005 2004 % Basic EPS 3.75¢ 2.70¢ 39% Dividend per share 2.50¢ 1.75¢ 43% Net Cash Flow from $5,733 $4,178 37% Operations (A$000) Current Ratio 2.14 1.79 20% R&D as percent of revenue 18% 19% RONA 28.7% 23.9%
Slide 6: Results FY 2003 – FY 2005
Results FY 2003 – FY 2005 A$ Millions Revenue New Sales PAT $35.0 20.0 $7.0 18.0 $30.0 $6.0 16.0 $25.0 14.0 $5.0 12.0 $20.0 $4.0 10.0 $15.0 $3.0 8.0 $10.0 6.0 $2.0 4.0 $5.0 $1.0 2.0 $0.0 0.0 $0.0 2003 2004 2005 2003 2004 2005 2003 2004 2005
Slide 7: New Sales by Region
New Sales by Region US$ Millions (Exc Europe: in GBP) Americas Asia Pacific Europe US$ US$ GBP 8.0 4.0 2.0 1.8 7.0 3.5 1.6 6.0 3.0 1.4 5.0 2.5 1.2 4.0 2.0 1.0 0.8 3.0 1.5 0.6 2.0 1.0 0.4 1.0 0.5 0.2 0.0 0.0 0.0 2003 2004 2005 2003 2004 2005 2003 2004 2005
Slide 8: 10 Year Revenue History A$ Millions
10 Year Revenue History A$ Millions Ten-year Revenue History - A$ Millions $40.0 $35.0 Other Revenue $30.0 Licence Fees Maintenance $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 9: 10 Year Revenue History US$ Millions
10 Year Revenue History US$ Millions US$ Millions 30 25 Other Revenue Licence Fees 20 Maintenance 15 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 10: Dividends (AU$000)
Dividends (AU$000) Balance of dividend franking tax benefit account at June 2005. $1,516 Reduction of FDT offset, subject to review. $806 Business/dividend model going forward: Dividend policy is to pay dividend in range of 40% to 60% of PAT. Australian taxable income is expected to be in excess of
Slide 11: IFRS
IFRS • Changes to accounting policies implemented from July 2005: - Inclusion of provision for lease make good costs - Exclusion of research costs from capitalised R&D - Recognising fair value of options as an expense - Foreign exchange gains or losses on translation of foreign subsidiaries recognis
Slide 12: Restatements for IFRS Comparisons
Restatements for IFRS Comparisons AU$ 000 Net Equity Net Equity 2004/05 June 2004 June 2005 Earnings Australian GAAP 18,644 21,574 6,199 - Lease make good -170 -219 -49 - Revenue recognition -895 -788 107 - Tax 341 320 -21 - Fair value of options -42 -239 -197 - Translation of foreign operations 242
Slide 13: CEO Address
CEO Address Presentation by: Keith Andrews Precise performance monitoring for business-critical systems
Slide 14: HP NonStop Business
HP NonStop Business • Continued single digit growth • 95% maintenance renewals • 10 year license renewals • Upgrades and new Integrity servers • PROGNOSIS add-on products • Continued R&D investment
Slide 15: Windows, UNIX, Linux
Windows, UNIX, Linux • Cross sell to existing customers - Existing WUL customers expanding internal use - WUL sales to NonStop customers • Targeted solution products o PROGNOSIS for Web Applications o PROGNOSIS for Terminal Servers • Apply to other IP telephony-like markets - Current Cisco IP teleph
Slide 16: IP telephony: VoIP deployments
IP telephony: VoIP deployments • Cisco still market leader - Large enterprise deployments • Increasing global spending for VoIP - US$17.2B 2005 to US$39.1B 2007 (Jay Lassman, Gartner June 2005) “It is worth noting that from 2004-2005 the growth rate in 1000+ phones sites was in the vicinity 60%. Fro
Slide 17: IP telephony: VoIP deployments
IP telephony: VoIP deployments • Our product has sustainable differentiation - Scalability; inherent in core design - Technical superiority proven in many customer labs “PROGNOSIS demonstrates a measurable advantage over other solutions. It presents a fault-tolerant, high-availability management sol
Slide 18: Growth Strategy
Growth Strategy • Leverage our worldwide customer base - 35% of all Fortune 1,000 companies - 58 new customers in 2005 • Leverage our partners (sample list) - UK – Prime Business Solutions & Equant - France - France Telecom (Equant) - Germany - T-Systems (Deutsche Telecom) - USA – BellSouth, AT&T, N
Slide 19: Growth Strategy
Growth Strategy • Expand our own sales capability - Germany now operational - More IP telephony sales people in each region - Focus on our “Sweet Spot” • Invest in adjacent products - Build (more R&D) - Buy, if a good fit - Other IP telephony environments, extend our current Windows, UNIX, Linux pla
Slide 20: Creating value
Creating value • Leverage our business model - Revenue growth yields significant earnings growth - Sustainable earnings growth is our focus • Keep revenue sources dispersed - No one customer is more than 7% revenue - Invest in ALL regions for growth • Invest now for future growth - Sales, Marketing
Slide 21: Our Revenue Profile
Our Revenue Profile • 48% of revenue recurring • 52% new license revenue - 40% of new license revenue last 2 weeks in each quarter - 31 New IPTM customers in 2005 o 5 customers ~ 85% of 2005 new license revenue - Similar characteristics to NonStop business
Slide 22: Summary
Summary • IP telephony (VoIP) is our best growth opportunity today - Windows, UNIX and Linux products • The traditional business is healthy • We are changing where we need to capitalise on our opportunities - Refining our go to market strategy - People and process • We are retaining what we have don
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