Technology One Limited · ASX:TNE
Technology One — ABN Amro Morgans Conference 2006
51 slides from Technology One's conference presentation, Sep 14, 2006
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Slide 2: Overview
The Power of Overview " TechnologyOne =" Competitive Landscape =» What Makes Us Different 2006 Full Year Results Significant Achievements Strategy for Growth Outlook and Challenges Summary Connected intel technologyene touxsirmpim dePecenes sseplatausenes
Slide 3: TechnologyOne develops, markets, sells, implements and supports enterprise applications
The Power of = TechnologyOne develops, markets, sells, implements and supports a broad range of enterprise applications: es =" TechnologyOne Financials " TechnologyOne Supply Chain = TechnologyOne HR & Payroll =" TechnologyOne Works & Assets " TechnologyOne Business Intelligence =" TechnologyOne Stu
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Slide 5: Competitive Landscape
ym petitive : Lan dscape The Power of New expanding market coverage ORACLE SAP/R3 7 eg x - &.-------- $1,000m <6 _ VE / & overage e - a ----- $300m ACCPAC rt technologyene Connected, Intelligence.
Slide 6: Our Competitors
Our Co jpetitors _ The Power of Oracle * Acquired JD Edwards, PeopleSoft, Siebel, Retek * Challenge of merging these overlapping product lines with Oracle Financials — “Project Fusion” * Which product do they sell? * Strength is in manufacturing and distribution verticals * Oracle core business was
Slide 7: Competitor business model: core software and customisation
Core Software every 18+ months ustomisation ustom Software Competitors build their core software products; Implementation Partner implements the products ~ Who is finally responsible for the success of the customer? No direct relationship between Competitor & their Customer. Implementation Partner m
Slide 8: TechnologyOne unmodified software model
The Power of | unmodified Customer Requests No Implementation Partner — TechnologyOne takes total responsibility from R&D, Marketing, Sales, Implementation and Support. Direct relationship between TechnologyOne and our Customers. No customer specific software modifications done on site. All work don
Slide 9: Business Models compared
niboeeiiess Models Competitor Business Model Competitors build their products; Implementation Partner implements the products -- Who is finally responsible for the success of the customer? No direct relationship between Competitor and their Customer Implementation Partner modifies software on site t
Slide 10: "Power of One" Business Model
The Power of = “Power of One” Business Model = We develop, market, sell, implement and support our range of products « The only enterprise vendor that does not use third party implementers or resellers = Operate in ‘real time’ with our customers " New release of our products every 6 months based on
Slide 11: What Makes Us Different
ihat makes us Differ The Power of =» We use Technology for competitive advantage = Technology ‘agnostic’ while many of our competitors are committed to a technology platform = Refresh our products every 5 to 8 years based on leading edge technology = Our new generation product: Connected Intelligenc
Slide 12: Focus on industry markets where competitors have no advantage
The Power of » We focus on industry markets that our competitors have no significant advantage: = Local Government = State/Federal Government * Higher Education = Financial Services = Health & Community Services * Utilities =" Managed Services = Simplicity and ease of use = Competitor's products are
Slide 13: Our New Connected Intelligence series vs Competitors' older products
The Power of Our New Connected Intelligence series vs Competitors’ older products Market confusion for our competitors’ clients after all the acquisitions — which of their products will survive long term? Many of our competitors’ clients have heavily customised software and can not easily take new s
Slide 14: Revenue model: initial and annual licence fees
The Power of Initial Year Year #2 . Purchase #1 New Modules Upgrade Ongoing Implementation Services Products Licence Services Initial Fee for Initial Initial Fee for licence fee service Licence fee Licence fee service (usage based) Annual Annual Annual Annual Annual licence fee licence fee licence f
Slide 15: Diversity of revenue streams
The Power of « Diversity of revenue streams = Geographies = Products « Vertical markets = Strong, very loyal blue chip customer base = We provide a mission critical solution = 50% of our revenues generated from existing customers each year = Opportunities going forward to extend our relationship = C
Slide 16: TechnologyOne Overview
The Power of » TechnologyOne Overview = 2006 Full Year Results » Significant Achievements = Strategy for Growth # Outlook and Challenges » Summary By cechnclogyone 16 touxsirmpim dePecenes sseplatausenes
Slide 17: 2006 Full Year Results
Year Resu The Power of » Record Revenue, up 21% * To $65.2m, increase of $11.3m * Record Net Profit After Tax (NPAT), up 16% = To $12.3m, increase of $1.7m = Record Net Profit Before Tax (NPBT), up 13% = To $16.3m, increase of $1.8m = NPBT up 13% vs 16% NPAT = Tax benefits associated with the move t
Slide 18: 2006 Full Year Results: R&D and dividend
Year Resu The Power of =» Record R&D expenditure remained strong, up 24% = To $12.7m, an increase of $2.5m = Representing 19% of Revenue = R&D fully expensed as incurred » Expenses excluding R&D/Depreciation up 24% = To $36.4m, increase of $7.0m # Dividend of 3.41 cents fully franked, up 10% = Yield
Slide 19: 2006 Full Year Result: ROE and balance sheet
2006 Full Year Result The Power of # Return on Equity (ROE) of 32% (vs 26% last year) = Among top publicly listed companies in Australia = 24% ROE over 5 years, makes us #35 of all publicly listed companies* = Adjusted ROE of 62% (adjusted for non working capital cash) » Strong balance sheet = Debt/
Slide 20: Four-year results trend
oO ir Resul [ 3 | rend | | The Power of Revenue Net Profit aftar Tax £000) $(090) 9,986 $A en i 44,258 —£_i—™@——_—————————_- 1.060 | eer ott LIT 8 RRREE BRS ERE EEE E Year Year Research and Development Dividend per Share Sf} Carts 15,000 ——— 4 i 2 > a 4 tbeett ity tl. s 2ERRRERRR RR Begeess 2 Year R
Slide 21: Full year results: key indicators
‘ear Resu i The Power of All key indicators are up strongly Licence fees up 47% (vs 17% last year) Annual licence and support revenue of $21.1m, up 23% (vs 19% last year) Implementation and consulting services revenue of $18.1m up 22% (vs 11% last year) 53% of our revenues now generated from existin
Slide 22: Full Year Results: strong despite weaker areas
ull Year Results” The Power of « Strong results particularly taking into consideration: * Project Services/Integration Services Revenue decrease of 6% to $7.2ma reduction of $437k * TechnologyOne HR & Payroll had an R&D loss of $676k * TechnologyOne Supply Chain had an R&D loss of $1.1m = Technology
Slide 23: TechnologyOne Overview
The Power of TechnologyOne Overview 2006 Full Year Results Significant Achievements Strategy for Growth Outlook and Challenges Summary technologyene touxsirmpim dePecenes sseplatausenes
Slide 24: Continued Strong New Business
The Power of Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom By cechnclogyone 24 touxsirmpim dePecenes sseplatausenes
Slide 25: Strong New Business
Strong New-Business _ThePowerof = Licence fees to new customers up 58% " Strong indicator of the increasing success of our new Connected Intelligence (Ci) product line = General Commercial - 38 new customers = Local Government - 12 new councils, giving us 103 councils in total « State & Federal Gove
Slide 26: Continued Strong R&D program
The Power of Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom By cechnclogyone 26 touxsirmpim dePecenes sseplatausenes
Slide 27: Continued Strong R&D Program
inu trong R&D*Program The Power of = Record R&D expenditure remained strong, up 24% = To $12.7m, an increase of $2.5m « Representing 19% of revenue * R&D fully expensed as incurred = Goal: Integrated enterprise software suite with ‘out of the box’ deep functionality based on the very latest technolo
Slide 28: Strong R&D Program: Ci platform
strong R& Program The Power of * TechnologyOne Financials Ci has been very successful to date: = Involved in all new deals « 150 sites committed; 120 sites now live =" Opened up opportunities in Tier One customer space *" R11.2 now available — critical for United Kingdom = R&D accelerated to bring r
Slide 29: R&D Program: new modules
rogram The Power of » R&D accelerated to develop new modules/functionality in following areas: = TechnologyOne Works & Assets = TechnologyOne Business Intelligence * TechnologyOne Student Management = TechnologyOne Property i technologyene touxsirmpim dePecenes sseplatausenes
Slide 30: R&D Program: Business Intelligence and CRM
rogram The Power of « TechnologyOne Business Intelligence (Bl) — significant new direction = BI “out of the box” across all our products = Lower cost of ownership; TechnologyOne data aware; able to incorporate other non-TechnologyOne data sources = Objective: Consolidate our approach to BI and Corpo
Slide 31: Continued Organisational Changes
The Power of Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom By cechnclogyone 31 touxsirmpim dePecenes sseplatausenes
Slide 32: Organisational changes: sales and marketing
= Continue to evolve as our business grows rapidly = New executive team ‘bedded down’ and responsibilities reassigned = Exceptional Sales and Marketing Initiative = All sales and marketing now under one Operating Officer " Marketing now aligned to sales " Identified and committed to seven well defin
Slide 33: Organisational Changes: customer service and software
al Changes The Power of = Exceptional Customer Service Initiative = All consulting now under one Operating Officer = Consistent business practices across all regions » Awesome Software Initiative = Smaller, empowered ‘domain teams’ to increase ownership, commitment and innovation = Consolidated Fina
Slide 34: Organisational Changes: creation of AANZ
al Changes The Power of = Creation of AANZ — Australia, New Zealand and Asia = Asia now reports into Australia Executive Team = Appointment of new Asian Manager to revisit our approach to Asia = Allows one senior executive to focus on developing our United Kingdom business q technologyene touxsirmpi
Slide 35: TechnologyOne United Kingdom
The Power of Continued Strong New Business Continued Strong R&D program Continued Organisational Changes TechnologyOne United Kingdom By cechnclogyone 35 touxsirmpim dePecenes sseplatausenes
Slide 36: First European office opened in Maidenhead, UK
The Power of = First European office opened in Maidenhead United Kingdom " Opportunities for substantial growth — market estimated to be 3+ times size of Australian market = Country Manager appointed with extensive experience and contacts * Key Australian staff relocated into United Kingdom as cultu
Slide 37: TechnologyOne Overview
The Power of = TechnologyOne Overview = 2006 Full Year Results » Summary = Analysis * Significant Achievements = Strategy for Growth = Outlook and Challenges =» Summary touaxsirmaim aerPencenmes scr! technologyane 4,
Slide 38: Focus on our seven key markets
The Power of = Focus on our seven key markets " Goal to achieve a dominant market presence in each market = Re-align sales, marketing, consulting, R&D and acquisitions/partnerships = Connected Intelligence (Ci) increasing our ‘win rate’ in our financial business " Accelerate R&D to move all products
Slide 39: Higher Education and Business Intelligence opportunities
The Power of * Higher Education — strong pipeline of opportunities now " TechnologyOne now ‘last man standing’ " Need to pro-actively manage opportunities and build infrastructure for growth = Good candidate for United Kingdom to continue growth in this sector = Extend product breadth to ‘add more v
Slide 40: HR & Payroll and Local Government strategy
: y f -G rowth The Power of = Focus now on HR & Payroll to become ‘best in class’ = Work with existing customers to achieve this = Significant revenue stream in medium term, as companies look for a totally integrated solution from one vendor # Will make this a highly profitable product line ($676k l
Slide 41: TechnologyOne Works & Assets
The Power of » TechnologyOne Works & Assets = New product, needs to be carefully managed = Extend product breadth rapidly over next few years = Potential new markets for TechnologyOne By cechnclogyone a touxsirmpim dePecenes sseplatausenes
Slide 42: New Zealand, UK and Asia growth
The Power of = New Zealand — continuing strong growth = Continue to build our management team # Geographical expansion provide significant growth opportunity in medium term = Continue to invest in the UK + $1m loss for 2007 financial year + Medium term strong contributor to growth * Critical to get
Slide 43: Significant opportunities in our existing customer base
The Power of # Significant opportunities in our existing customer base Powerful proposition: ‘provide customers with complete integrated solution from one company’ Cross-sell existing TechnologyOne products Acquisition/partnerships of other third party products to sell into our customer base Moving
Slide 44: TechnologyOne Overview
The Power of » TechnologyOne Overview » 2006 Full Year Results » Significant Achievements = Strategy for Growth # Outlook and Focus » Summary By cechnclogyone 44 touxsirmpim dePecenes sseplatausenes
Slide 45: Continuing strong growth outlook
The Power of * Continuing strong growth « Market conditions continue to improve generally * Continuing strong growth in New Zealand and Australia * Improvements in 2 largest states NSW and Victoria * Increased win rate from our Connected Intelligence series * Tier One opportunities * Increased penet
Slide 46: Opportunities for continuing strong growth
The Power of Opportunities for continuing strong growth Financials - further Tier One opportunities in ANZ due to acceptance of our Ci platform Financials — growth in United Kingdom market Higher Education continuing strong market in ANZ Higher Education opportunities in United Kingdom Local Governm
Slide 47: Challenges: migration to Ci platform and expansion
The Power of Manage the migration of all our customers to our new Ci platform Progressively develop and release other Ci products * TechnologyOne Property Ci * TechnologyOne Student Management Ci Consolidate TechnologyOne HR & Payroll position in the market Manage rollout of TechnologyOne Works & As
Slide 48: TechnologyOne Overview
The Power of » TechnologyOne Overview » 2006 Full Year Results » Significant Achievements = Strategy for Growth =" Outlook and Focus «= Summary By cechnclogyone 48 touxsirmpim dePecenes sseplatausenes
Slide 49: TechnologyOne Summary
gyOne Sum ry The Power of Robust Revenue Model -~ Initial Licences, Annual Licences, Implementation Fees Unique Business Model - “Power Of One” = No implementation partners — direct relationship with our customers = No customised software — all clients use vanilla TechnologyOne software Sticky ‘blue
Slide 50: Slides available from our web site
The Power of These slides are now available from our web site: www. TechnologyOneCorp.com under the investor relations section. touaxsirmaim aerPencenmes scr! technologyane ,,
Slide 51: i iy ie
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