Integrated Research Limited · ASX:IRI

Integrated Research — FY2009 Earnings Presentation

15 slides from Integrated Research's earnings presentation, Aug 27, 2009

1. Slide 1: FY2009 financial results

   For personal use only Integrated Research Limited FY2009 financial results ABN: 76 003 588 449 August 2009 I Investor t Presentation P t ti Performance monitoring software for business-critical systems

2. Slide 2: A Record Result

   A Record Result For personal use only ƒ Net p profit after tax up p 36% on last year y to $7.9m $ ƒ New licence sales up 11% to $21.7m ƒ Total revenue up 14% to $42.7m Key highlights ƒ 2.5 cent final dividend (5% franked) • 47% IP Telephony new licence sale growth • 14% HP Nonstop new licence sale g

3. Slide 3: Financial results

   Financial results For personal use only 30 June 2009 30 June 2008 % change A$000’s A$000’s Licence fees 21,723 19,623 11% Maintenance fees 19,217 16,344 18% Consulting and other services 1,744 1,417 23% Total revenue 42,684 37,384 14% R&D expenses 8,244 8,717 (5%) Sales & Marketing 18,932 17,114 11%

4. Slide 4: Balance sheet

   Balance sheet For personal use only Key y balance 30 Ju Junee 2009 009 30 Ju Junee 2008 008 sheet items A$000’s A$000’s Cash at bank 14,459 11,148 Receivables 11,012 10,157 Development cap. 13,323 12,641 Deferred Revenue 11,463 9,293 Net assets 27,246 23,791 Performance monitoring software for busin

5. Slide 5: Cash Flow

   Cash Flow For personal use only ƒ Cashflow from Operating p g Activities was A$7.6m $ (2008: A$5.9m) ƒ Cape Capex for o 2009 009 was as A$0.5m $0 5 (2008: A$0.4m) ƒ Cash at end of year $14.5M (Prior year $11.1M) Performance monitoring software for business-critical systems

6. Slide 6: R&D spending

   R&D spending For personal use only 30 June 2009 30 June 2008 30 June 2007 A$000’s A$000’s A$000’s Gross spending 9,001 10,098 7,831 Development – Cap. 5,790 7,255 5,454 Capitalised % 64% 72% 70% Amortised 5,033 5,874 3,992 Net Expense 8,244 8,717 6,369 % of revenue 19% 23% 18% ƒ R&D investment in ne

7. Slide 7: Review of Operations – By Segment

   Review of Operations – By Segment For personal use only Revenue by 30 June 2009 30 June 2008 % change Geographic region $000’s $000’s Americas ($US) 19,710 20,720 (5%) Europe (GBP) 3,321 2,863 16% Asia Pacific ($A) 7,317 7,358 (1%) ƒ Business model strong despite financial crisis: – American recover

8. Slide 8: Review of Operations – By Product

   Review of Operations – By Product For personal use only Billings by 30 June 2009 30 June 2008 % change Product Line ($A) $000’s $000’s NonStop 27,135 22,642 20% IP Telephony 10,810 7,345 47% Windows / Unix / Linux 3,875 5,528 (30%) Total ($A) 41,820 35,515 18% ƒ Strong growth in IPT ƒ NSK solid grow

9. Slide 9: Year revenue history – A$ millions

   10 Year revenue history – A$ millions For personal use only $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Licence Revenue Maintenance Revenue Other Revenue ƒ Revenue continues to grow year on year Performance monitoring software for

10. Slide 10: Newer Products Growing

    Newer Products Growing For personal use only Total IPT revenue Total WUL revenue AUD($’000) $16,000.0 $14,000.0 $12,000.0 $10,000.0 $8,000.0 $6,000.0 $ , $4,000.0 $2,000.0 $0.0 2001 2002 2003 2004 2005 2005* 2006 2007 2008 2009 ƒ Windows / Unix and IPT revenue growing well Performance monitoring sof

11. Slide 11: Key customers

    Key customers For personal use only ƒ Global customer base driving g new and repeat p business: Asia Pacific Americas Europe p – ANZ – JP Morgan Chase – First Data – Taiwan Stock Exchange g – IP Soft – KPN – St George – Dell – EJPD – Vodacom SA – AT&T – Linklaters Performance monitoring software for

12. Slide 12: IPT Underpins Growth

    IPT Underpins Growth For personal use only ƒ 47% increase in IPT sales ƒ Benefit from Managed Service Providers and ttrend e d to outsource outsou ce te telephony ep o y management a age e t ƒ Investment in product features, quality and scalability ƒ Approaching 2 million phones under management Per

13. Slide 13: AVAYA partnership will drive growth

    AVAYA partnership will drive growth For personal use only ƒ Partnership p agreement g with AVAYA: – AVAYA discontinued their monitoring product – PROGNOSIS shipped with every AVAYA PBX for 250 phones – Up-sell opportunity at 250+ phones ƒ 200,000 phones licensed in 4 months ƒ Web-based customer serv

14. Slide 14: NSK Very Solid

    NSK Very Solid For personal use only ƒ 14% increase in NSK sales ƒ Spend on NSK deemed mission critical ƒ New NSK products and features released in FY09 – Support for Blades (new generation Non-Stop hardware) ensures ongoing benefit from PROGNOSIS Performance monitoring software for business-critica

15. Slide 15: Strategy

    Strategy For personal use only ƒ Continue to invest in R&D for the longer g term – New products and features ƒ Increase consulting revenue – Customer demand for services – Implementation and training – Re-saleable customised solutions ƒ Business development – Replicate Avaya success Performance moni

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