Slide 1: Integrated Research Limited (IRI) FY2018 Financial Results
For personal use only Integrated Research Limited (IRI) FY2018 Financial Results August 2018 ABN: 76 003 588 449 6 of the 9 of the Top 125+ of the Top 10 10 Fortune 500 Automotive US banks Companies 6 of the 7 of the 10 Top 10 biggest Fin Services Telcos Companies Globally Creating clarity and insig
Slide 2: Company Summary
Company Summary For personal use only Business Highlights Key Differentiators 1. #1 Vendor in User Experience & Performance 1 Management for UC, Payments & Infrastructure Founded: 1988 Headquarters: Sydney 2. 2 Provide real-time clarity & insight into critical Employees: ~260 systems performance FY2
Slide 3: Key Highlights
Key Highlights For personal use only Financial Results Financial Performance ▪ UC continues to grow • Licence Sales down 2% to $52.6m ▪ Cyclical downturn in infrastructure • Total Revenue flat at $91.2m ▪ Europe underperformance • Net Profit After Tax up 4% to $19.2m ▪ Testing and Consulting growth
Slide 4: FY18 Performance Commentary
FY18 Performance Commentary For personal use only FY18 Growth Impacted by… Outlook Microsoft… Positive: Market confusion about Microsoft’s messaging on IR will support both SfB and Teams, and will benefit Teams vs Skype, halting purchasing decisions either way Avaya… Positive: Avaya’s slow rebound a
Slide 5: Financial Results
Financial Results Revenue '000 30 June 2018 30 June 2017 95,000 For personal use only % A$000’s A$000’s change 75,000 Licence fees 52,591 53,441 (2%) 55,000 Maintenance fees 26,010 26,871 (3%) 35,000 Testing solutions revenue 5,207 4,073 28% 15,000 Consulting fees 7,367 6,784 9% 2008 2009 2010 2011
Slide 6: Margin consistency
Margin consistency For personal use only 30Jun18 30Jun17 % change A$000’s A$000’s Total revenue 91,175 91,169 0% EBITDA 36,430 37,007 (2%) EBITDA margin 40% 41% EBIT 25,848 25,708 0.5% EBIT margin 28% 28% Profit after tax 19,180 18,520 4% PAT margin 21% 20% 6
Slide 7: Recurring Revenue
Recurring Revenue Recurring revenue base (A$) For personal use only 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - FY 13 FY 14 FY 15 FY16 FY17 FY18 88% Increase in Substantial term recurring reduction in transactions – of revenue perpetual averag
Slide 8: Financial Position & Performance
Financial Position & Performance For personal use only June June Dividends (cents) 8.0 2018 2017 7.0 A$000’s A$000’s 6.0 5.0 4.0 Cash at bank 11,238 14,113 3.0 2.0 Current receivables 44,186 35,998 1.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Noncurrent receivables 26,892 23,299 In
Slide 9: Product Line Performance
Product Line Performance For personal use only Unified Communications Revenue '000 60,000 50,000 40,000 30,000 Revenue by June 2018 June 2017 % 20,000 Product Line ($A) change A$000’s A$000’s 10,000 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 AUD USD Unified Communications 54,865 51,132
Slide 10: Regional Performance
Regional Performance For personal use only Americas Revenue (US#039;000) Asia Pacific Revenue (A#039;000) Europe Revenue (£'000) 60,000 14,000 10,000 9,000 50,000 12,000 8,000 40,000 10,000 7,000 8,000 6,000 30,000 5,000 6,000 4,000 20,000 3,000 4,000 2,000 10,000 2,000 1,000 - - - 2014 2015 2016 2017 201
Slide 11: Summary
Summary Financial Performance For personal use only Financial Results ▪ UC continues to grow • Licence Sales down 2% to $52.6m ▪ Cyclical downturn in infrastructure • Total Revenue flat at $91.2m ▪ Europe underperformance • Net Profit After Tax up 4% to $19.2m ▪ Testing and Consulting growth Recurri
Slide 12: Strong Foundation for Growth
Strong Foundation for Growth For personal use only Our business fundamentals are strong: • Sound business model • Diverse sources of income • Global customer base across many verticals/geographies • High retention rates and 88% recurring revenue • R&D investment driving innovation, new products and
Slide 13: UC Growth Drivers
UC Growth Drivers For personal use only Unified Communications will benefit from several growth drivers: • Cisco SolutionsPlus – IR Prognosis now sold through Cisco’s global marketplace, one of only 42 vendors worldwide • Growth in Service Providers will continue as enterprises outsource their UC in
Slide 14: FY19 Growth Drivers
FY19 Growth Drivers For personal use only Multiple independent growth drivers mitigate risk HCS-G Cloud Analytics Payments CRA SolutionsPlus Service Providers High Confidence Less Certainty 14
Slide 15: Our Leadership Team
Our Leadership Team For personal use only We have invested in our leadership capability to execute our strategy and deliver growth for shareholders over the short and long term John Merakovsky Peter Adams MD & CEO CFO Andre Cuenin Kevin Ryder President, Chief Marketing & Americas and Global Alliance
Slide 16: Thank you. Questions?
For personal use only Thank you. Questions? 16