Slide 1: 2004 Results Presentation
www. echnolo OneCorp.Com 2004 Results Presenta a Technology One Business Software Solutions _Adrian_DiMarco@TechnologyOneCorp.com E Chairman.
Slide 2: 2004 Full Year Results
= 2004 Full Year Results * Significant Achievements * Product Road Map and Direction = Outlook
Slide 3: Impacted by performance of a number of business units
* Impacted by performance of a number of business units « Record Profit Before Tax of $13.11m, up 30% * Tight control over costs was a key factor in our results « Profit After Tax of $9.48m, up 35% » Over provisioning of tax in prior year » R&D tax concession One Vision _
Slide 4: Full Year Results - Summary
ar Results - Summar » R&D of $9.5m, representing 19% of revenue » R&D fully expensed as incurred « Dividend of 2.85cs fully franked, up 14% » Yield of 4.6% ff, based on a share price of 62 cents # Payout ratio of 90% One Vision
Slide 5: Cents per Share
3.00 2.50 2.00 1.50 Cents per Share 1.00 0.50 0.00 2001 2002 2003 2004 One Vision
Slide 6: 2004 Full Year Results - Summary
2004 Full Year Results - Summa a Unadjusted ROE of 28% « Strong Operating Cash flow of $12.3m compared to NPAT of $9.5m * Debt/Equity of 3%
Slide 7: Financial results table
Actual Actual OE ii Cat a waa EBITDAR 20,290 23,221 2,931 (14%) R&D 9,306 9,547 (241) (3%) EBITDA 10,984 13,674 2,690 24% Depreciation and Amortisation 889 906 (17) (2%) Amortisation of intangibies 669 667 2 0% FOREX 210 2 208 99% EBIT 9,216 12,099 2,883 31% Net Interest Income 905 1,011 406 12% Net
Slide 8: 2004 Full Year Results - Analysis
2004 Full Year Results - Analysis. » Licence fees to new customers up 22% » Licence fees to existing customers up 51% = Annual licence fee revenue up 16% = Consulting services revenue down 5% # Timing issue = Project Services revenue down 9% this year « Poor performance in NSW One Vision _
Slide 9: 2004 Full Year Results - Analysis
_2004 Full Year Results - Analysis. iii iin iii nance One suite strongest performer = 22% increase in revenue over the previous year » {Involved in almost all deals # Have not yet tapped the full potential of our Supply Chain (Retail One) and Payroll/HR (People One) = Proclaim One revenue flat » Sma
Slide 10: Regional results
All reg Pp | al L (revenue down 33%) and WA (revenue down 37%) » WA had an abnormally strong year in 2003, so reduced performance was expected in 2004 » Impact reduced by significantly reducing expenses (MAL down 53%, WA down by 25%) « MAL loss was reduced from $662,000 in 2003 to $47,000 in 2004 by
Slide 11: Significant Achievements
« Significant Achievements «= Product Road Map and Direction = Outlook “eh ” _
Slide 12: Organisational Changes - New executive team
« Organisational Changes - New executive team and improved organisational structure * Continued R&D program « Investigation into new overseas territories One Vision
Slide 13: Key factors
« Key factors » Improving market conditions (patchy still) # “Act Locally, Think Globally” Restructure undertaken in late 2003
Slide 14: New contracts - Local Government
City Council = Baw Baw Shire Council * Burdekin Shire Council * Campbelltown City Council » City of Sydney * Ku-ring-gai Council # Local Government Association of Qld # Warwick Shire Council » Launceston City Council * Hastings District Council (NZ) * Hutt City Council (NZ) * Porirua City Council (N
Slide 15: New Contracts by Sector
New Contract bySector —— Me = New business sold: — Timberland - Le Cornu « Purchasing/Supply Chain component of Retail One sold to over 45 Finance One customers
Slide 16: New contracts - Federal Government
» ACT Revenue » Australian Broadcasting Authority * Australian Maritime Safety * Australian National Training Authority «» Department of the Senate = Melbourne Water Corporation » National Native Title Tribunal = Qld Competition Authority * Qld Rural Adjustment Authority One Vision ie
Slide 17: New Contracts by Sector
New Contracts by Sector ieral Commercial (Austral Adelaide Convention Centre . Advanced Data Integration Pty Ltd ® Catholic Education Wollongong % Crown Formwork Pty Ltd ” Drinx Pty Ltd ” Equity Trustees % Fincorp Finance % Flinders Ports * Global TV ” ICA Presents Pty Ltd « Institute Chartered Acco
Slide 18: New contracts signed
=» 20 new contracts signed « Sold as ‘add on’ to Finance One, not as best of breed # Played an important part in winning Finance One deals such as Australian Maritime Safety Authority
Slide 19: New Contracts by Sector - Project Services
| i f _ New Contrac ibySector 4... mii -roject Services Australian National Training Authority NSW Department of Lands Qld Department of Public Works Qld Department of Primary Industries Qld Department of Tourism, Fair Trading and Wine Industry Development Siemens Theiss Communications Victoria Lega
Slide 20: New Contracts - International
ntracts - International Aviation Security Electricity Ashburton Limited Hastings District Council Hutt City Council Institute of Chartered Accountants NZ Jacques Martin Marlborough Lines Limited Scenic Circle Hotels Limited South Taranaki District Council The Todd Corporation Territory Education Com
Slide 21: New Contracts - International
- New Contracts - International i GOGO i i iii iiiiivh laysia # Align Distribution Sdn Bhd # KUB Telekomunikasi Sdn Bhd * Quanterm Logistics Sdn Bhd » WCT Construction Sdn Bhd
Slide 22: Finance One CI positions us strongly for the future
» Finance One Cl positions us strongly for the future » Will need to manage the roll-out of the new Finance One Cl series carefully not to impact existing sales ~ Limited trials starting in Oct/Dec 2004 ~ Expected company wide rollout in early/mid 2005 calendar year One Vision 22
Slide 23: Retail One and Proclaim One market potential
ease market potential * More reference sites important as this is a very conservative market — Timberland and Le Cornu are important » UK could be a strong market for this product in the future = Proclaim One » The new Cl series coupled with Work One and tighter integration to Finance One/People One
Slide 24: People One and Student One
* Total of 53 clients using People One now # Addition of HR functionality will position this product well in the future » Becoming critical in the sale of Finance One = Student One » Limited opportunities in 2004 » Focus on maximising revenue from exiting base = Potential may exist overseas = Curren
Slide 25: Regional focus and Malaysia
cM MM NAD * Queensland and Victoria well positioned » Focus on New South Wales to build the business « New Zealand good opportunities going forward = Malaysia * Costs dramatically reduced by using local staff only » Target smaller deals to get entry into large organisations One Vision
Slide 26: Significant Achievements
Significant Achievements d Sal « Organisational Changes - New executive team and improved organisational structure * Continued R&D program « Investigation into new overseas territories One Vision 26
Slide 27: New regional structure
= North West Region — QLD, SA, WA, TAS = Central Region — NSW, VIC, ACT « International — NZ, MAL, etc.. = Project Services = New Executive Team of four Operating Officers, responsible for each division » Long serving TNE managers « Each Executive also assigned responsibility for one of our R&D team
Slide 28: Organisational Changes
1 ! | i ie Organisational Changes each of their states/territories on a regular basis with » Increased focus on driving sales » Increased focus on customer satisfaction One Vision 28
Slide 29: Increase sales to existing customers and verticals
{ management to increase sales/services to existing customers » Partnerships to target new verticals » Increased focus on Verticals we are already strong in: ~ Local Government ~ State, Federal and Qangos - Health, not for profit, membership and media ~ Retail, wholesale and leisure ~ Utilities, tra
Slide 30: Going forward
forward # Reliably measure our opportunity pipeline and measure it against stated KPis » Company wide CRM is key to make this happen " Specific initiatives for a region * Telemarketing moved into the bigger states, to get closer to the action One Vision _
Slide 31: Product responsibility and regional resources
their assigned product responsibility « Establish regional based resources (as distinct to state based) » People One, Supply Chain, Proclaim One = Improved resource sharing across states in a region = Greater focus to handle customer problems » Direct Executive involvement One Vision 31
Slide 32: Underpin our next stage of growth
Ay | i ) = This will ‘underpin our next stage of growth and opportunities
Slide 33: Significant Achievements
Significant Achievements d Sal « Organisational Changes - New executive team and improved organisational structure « Continued R&D program « Investigation into new overseas territories One Vision 33
Slide 34: New releases of all our products
« New releases of all our products shipped as follows: » Finance One, Retail One and People One R10.3 & R11.0 » Student One R2.4, R2.5 & R2.6 *» Proclaim One R9.3 « Work also commenced on our newest product Work One » An advanced Project & Works Management system = Substantial effort directed into o
Slide 35: Significant Achievements
Significant Achievements d Sal « Organisational Changes - New executive team and improved organisational structure * Continued R&D program « Investigation into new overseas territories
Slide 36: International expansion: South Africa, UK, China
» South Africa # United Kingdom « China * South Africa » Local Government market as the initial entry point » Issue is ‘Black Empowerment Partner” » Strategy to find a high quality partner * Still under investigation One Vision ay iy 6
Slide 37: Finance One as the initial entry point
Finance One as the initial entry point Strategy is to find a Country Manager, and use local Partners Issue is multi-currency and availability of Finance One Cl Still under investigation, and looks very promising # China » Finance One as the initial entry point » Strategy is to find a local Partner w
Slide 38: Significant Achievements
* Significant Achievements « Product Road Map and Direction = Outlook
Slide 39: Product Road Map
_» Product Road Map One Vision
Slide 40: Product themes
« Deep Integration * Product Breadth « “Out of the Box, Ready to Go” « Information At Your Fingertips One Vision 40
Slide 41: Business application framework
« Business application framework to build applications that engage employees, suppliers, customers etc. « Allow us to take our Intellectual Property (and that acquired from others) to build powerful new generation of applications One Vision 41
Slide 42: CI product release schedule
» Undergoing Alpha & Beta testing # Expected to be available for LD in early 2005 «= Development of other Cl products progressively released over the next two years as follows: =» People One Cl — mid/late 2005 # Retail One Cl — mid/late 2005 # Proclaim One Cl — late 2005/early 2006 = Student One Cl
Slide 43: CI developed for the future
» Cl developed for the future not today.... « As part of Cl there are certain themes that are driving our product direction One Vision 43
Slide 44: Deep Integration
, Deep I teg all . : ae oe forward - Deep Integration! One Vision 44
Slide 45: Integrated solution
Assets/Project Management Financials Business °, Intelligence Each part of our Solution is world class, olally integrated solution 5
Slide 46: Integrated local government solution
Property Regulat & Rating eguiatory eCouncil i Financials Customer Se HR/Payroli Service (CRM) Asset Maintenance
Slide 47: Deep integration focus
this deep integration « Focus on increasing the depth of our integration as part of Cl rollout for » Proclaim One * Student One One Vision 47
Slide 48: Product breadth and add-ons
* People looking for broad tightly integrated solutions from one vendor # Approach is to build ‘Add Ons’ » Breadth not depth » Partner with companies where depth is required » Add Ons » Work One - asset/project management * Generic cash receipting/POS across all our products * Manufacturing One — un
Slide 49: Out of the box, ready to go
* Goal: less than $1 of services for every $1 of license fees * Everything works out of the box when installed = System data shipped = Preconfigured setups One Vision 49
Slide 50: Information at your fingertips
= Drill downs to transactions and across system boundaries « Drag and Analyse technology across all our products « Business Intelligence ‘out of the box’ * Business One integration across our product suite * Business Intelligence from Business Objectives and Cognos actively supported by all our prod
Slide 51: 2004 Full Year Results
NN) # 2004 Full Year Results * Significant Achievements = Product Road Map and Direction = Outlook One Vision 51
Slide 52: Market conditions and challenges for 2005 and 2006
» We believe market conditions should continue to improve in 2005 « Challenges for 2005 & 2006 are as follows: * “Bed down” Finance One Cl and establish it in the market » Progressively develop and release other Cl products » “Bed in” the new Regional Structure » Initial entry into new geographies O
Slide 53: Expected growth of 5% to 10%
» Expect growth of 5% to 10% 05 assuming the following: * No impact caused by new accounting standards (IFRS) » No substantial costs incurred by our international expansion
Slide 54: Improving market conditions and growth drivers
Improving market conditions Capitalise on market consolidation Cl series to increase our win rate Increased penetration of People One, Retail One, Proclaim One New systems — Work One and others to follow New partnerships (to be identified) Greater focus on sales with our new regional focus » Focus o
Slide 55: Long Term Outlook
_ Long,Term Outlook
Slide 56: Technology One contact
www. echnolo OneCorp.Com 2004 Results Presenta a Technology One Business Software Solutions _Adrian_DiMarco@TechnologyOneCorp.com E Chairman.