Slide 1: Half Year Results December 2003
Half Year Results December 2003 en By Technology One Intelligent Business Solutions Adrian DiMarco@TechnologyOneCorp.com ecutive Chai
Slide 2: 2004 Half Year Results
2004 Half Year Results Significant Achievements Last Six Months Outlook Long Term Growth Prospects
Slide 3: Results 2004 Half Year
Results 2004 Half Year Re p Slightly to $24 Expenses excluding R&D down: 6% * Re-aligned costs & improved efficiencies Company continued to invest in its future * R&D spend maintained at 20% » R&D fully expensed as incurred Profit Before Tax up: 16% Profit After Tax up: 21%”*
Slide 4: Strong in the bigger regions: Qld, NSW, Vic & NZ
* Strong in the bigger regions: Qld, NSW, Vic & NZ » Weaker in the smaller regions: SA & WA = Clear indication of a turnaround still not apparent « First half results last year were abnormally strong due to a significant deal closing earlier than expected » 51% of revenue was done in the first half
Slide 5: Return and cash flow
Retur last year) « Operating Cashflow of $4.26 million (vs $3.82m NPAT) « Balance sheet strong * Cash on hand’: $18 million = Debt/Equity: 3% « Transparency of results — all R&D fully expensed
Slide 6: 2004 Half Year Results - Dividend
__ 2004 Half Year Results. ed for c) Ss Board to decide if full year dividend to increase above 2.5cs expected by the market Cents per Share Dividend (cps) 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2001 2002 2003 2004 Year
Slide 7: Revenue, expenses and profit summary
Revenue (PRE 3rd party costs) (excl int Expenses (excl R&D, Depn, Forex & Amort) . 13,367 (1,009) (7%) EBITDAR 9,582 10,758 1,176 12% R&D 4,645 4,862 217 5% EBITDA 4,937 5,896 959 19% Depreciation 424 433 9 2% Amortisation of Goodwill 298 298 0 0% FOREX (44) 103 147 334% EBIT 4,259 §,062 803 19% Net
Slide 8: Significant Achievements Last Six Months
yp Significant Achievements Last Six Months g ast half) « Finance One continued to perform strongly * Involved in majority of deals * Strategic deals signed: — Institute of Chartered Accountants Australia ~— Australian Broadcasting Authority Westralia Airports ~— ACT Revenue Department of The Senate
Slide 9: Significant Achievements Last Six Months
evements Last Six Months * Four new contracts signed: — Port Kembla Coal Terminal ~ Aust Track Rail Corp Urban Maintenance Systems Capital First Holdings = Retail One = No new deals in the first half * Good opportunities in the second half
Slide 10: Significant Achievements Last Six Months
hievements Last Six Months. ‘ » Three new contracts won: ~— Hastings District Council (NZ) — Ku-ring-gai Municipal Council (NSW) — Hutt City Council (NZ) Leading supplier in Local Government in Australia Five councils now in NZ Good opportunities going forward in NZ CRM module released to improve sa
Slide 11: Significant Achievements Last Six Months
_ Significant Achievements Last Six Months — One — no new business = No new deals in the first half * Stronger result in the first half than expected » Limited opportunities in the short-term
Slide 12: Five new contracts won
* Five new contracts won: — Jacques Martin Tertiary Education Commission Hastings District Council Hutt City Council Aviation Security Service » Good opportunities going forward
Slide 13: Three new contracts won
« Three new contracts won ~— WCT Construction — Align Distribution — KUB Telekomunikasi * Costs reduced dramatically by employing locals
Slide 14: Significant Achievements Last Six Months
_ Significant Achievements Last Six Months: =» Three new contracts won: ~ Siemens Thiess Joint Communications Venture ~ ACT Revenue — Aust National Training Authority * Second half looks challenging » Business Development Manager to be appointed in NSW to grow the business
Slide 15: Significant Achievements: SME market, Biz One
yo Significant Achievements Last Six Mon ME market =» Why Biz One? » Finance One is seen as too big * Pricing and implementation too expensive for SMEs * Appropriate Pricing Model & Basis for Calculation « Successful trials now run as follows: — SoftLink International — Qld Competition Authority — C
Slide 16: Finance One $300m
ANCE-ONE--- $300m a fF
Slide 17: Significant Achievements Last Six Months
Significant Achievements Last Six Months » Key messages Rich functionality but priced for SMEs Pre-configured and quick implementation times Integration — Payroll through to financials One company develops, markets, sells, implements & support Upgrade path to Finance One provided as a company grows
Slide 18: Finance One CI on track
Intelligence series) on track « Finance One Cl on track for release July 2004
Slide 19: Deeper understanding of competitors' strengths and weaknesses
* Deeper understanding of our competitors strengths and weaknesses * Focus our R&D on maximizing our strengths and overcoming our weaknesses » Ensure we are maximizing our product positioning against our competitors
Slide 20: Think Locally, Think Globally
Locally, Think k Globally” * Working exceptionally well * More changes planned * Quarterly results focus - KPI system now implemented to support this
Slide 21: Outlook: R&D
| _ Outlook > =» 20% of revenue » New major areas of R&D in the next 12 months: « Multi-currency for international markets » Works Order/Asset Management = Apparel/Fashion handling =» New Procurement system = Improved B2B support = HR functionality for People One « Retail One Cl » People One Cl » Pr
Slide 22: Expected Profit Growth for 2003/2004 financial year
«" Expected Profit Growth for 2003/2004 financial year will be at the higher end of our range: * 5% to 10% growth « Expect further improvements in the 2004/2005 financial year. This is dependent on: * Improving market conditions » Take-up of our new Finance One: Cl * Continued alignment of costs wit
Slide 23: CI products
Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 24: Consolidation to continue
= Consolidation to continue « We need to capitalise on this through our Product Marketing and advertising
Slide 25: CI products
Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 26: Finance One CI branding introduced
« Finance One Cl branding introduced * Marketing launch program under development * Product Marketing updating our Finance One presentation approach for Cl » Demonstrations of Finance One Cl to start in March/April « Finance One Cl ships July 2004 — Limited Distribution
Slide 27: Growth Strategy
_ Growth Strategy — * Cl products * Increase traction for newer products * Target the SME space -— Biz One initiative « Sharper focus on State and Federal Government * New verticals through partnerships * Sales growth from overseas expansion Protect our existing customer revenue base
Slide 28: Specialist salespeople added
« Specialist Payroll/HR salesperson added = People One Cl to be delivered in next 12 months « Retail One * Fashion and apparel functionality to be added in next 12 months * Specialist Retail salesperson added * Retail One Cl to be delivered next 12 months * Proclaim One = CRM and Works Management to
Slide 29: Limited opportunities in Australia
Limited opportunities in Australia Long term looks good as our competitors will struggle R&D team size limited and focus on profitability New Zealand opportunities being investigated MA & UK are possibilities at some point in the future
Slide 30: Growth Strategy
_ Growth $ Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 31: Growth Strategy - Biz One
Growth Strategy - Biz One = Sold to companies in the $10m to $30m turn-over * Appropriate Pricing Model and Basis for Calculation « Further trials required to ensure this makes sense « Launch program to be developed
Slide 32: CI products
Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 33: Strategic approach to Government sales
complex and strategic sale as they adopt one of the following approaches: =» Whole of Government = Clusters = Shared Services " Strategic approach to Government needed: =» GRA has been appointed as a lobbyist to assist us with intelligence, strategy and execution = Will only work if the initiative i
Slide 34: Growth Strategy
_ Growth $ Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 35: Growth Strategy - New Verticals Through Partnerships
Growth Strategy — New Verticals Through _ Partnershi . oe i * Professional Services market » Remote Data Capture (for Councils and Retail)
Slide 36: Growth Strategy
_ Growth $ Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 37: South Africa, UK, China
= South Africa » UK =» China
Slide 38: Growth Strategy
_ Growth $ Cl products Increase traction for newer products Target the SME space — Biz One initiative Sharper focus on State and Federal Government New verticals through partnerships Sales growth from overseas expansion Protect our existing customer revenue base
Slide 39: Growth Strategy - Protect Our Existing Customers
Growth Strategy — Protect Our Existing Custome « Key to customer retention is as follows: = Customer support Software quality Account management Continued R&D Cl products
Slide 40: Half Year Results December 2003
Half Year Results December 2003 en By Technology One Intelligent Business Solutions Adrian DiMarco@TechnologyOneCorp.com ecutive Chai