Slide 1: 2025 Half Year Results
2025 Half Year Results Ended 31 March 2025 © 2025 TechnologyOne Limited | ABN: 84 010 487 180
Slide 2: Disclosure Statement
Disclosure Statement TechnologyOne Ltd FY25 Half-Year Presentation – 20 May 2025 TechnologyOne Ltd (ASX: TNE) today conducted a series of presentations relating to its 2025 Half Year results. These slides have been lodged with the ASX and are also available on the company’s website: Investor Relatio
Slide 3: Agenda
Agenda • Highlights • Financial Results • Significant Achievements • Outlook for Full-Year • Long-Term Outlook 3
Slide 4: H1 FY25 Highlights
H1 FY25 Edward Highlights Chung Chief Executive Officer 4
Slide 5: H1 FY25 Results – SaaS+ Delivers
H1 FY25 Results – SaaS+ Delivers ARR exceeds $500 million in the half – 18 months ahead of schedule Profit ARR growth growth driven by 33% SaaS+ to $81.9m (NPBT) Up 21% to $511.1m 5
Slide 6: Our Vision: Making life simple for our community
Our Vision Making life simple for our community Our Purpose Our passion is to solve the complex Our Mission Better our community, from its citizens to students, by leveraging our team’s innovation, drive and determination. 6
Slide 7: The TechOne Way
The TechOne Way Why we exist How our beliefs & behaviours shape our performance The power of Evolution not We dream One Market Tech is the one revolution big and experience Focus & Answer deliver for our Commitment customers What our leaders do to inspire, influence and motivate others to achieve ou
Slide 8: Market Focus & Commitment
Market Focus & Commitment Evolution not We dream big revolution and deliver Tech is the Answer One The experience for power of our customers one 8
Slide 9: One Market Focus and Commitment
One Market focus Evolution The Power Experience and not of One for our commitment revolution customers Local Education Government Government Asset and Project Intensive Health and Community Financial Services and industries Services Corporates 9
Slide 10: We continue to invest in R&D to build future platforms for growth
We continue to invest in R&D to build future platforms for growth. ERP in 30 Ai/ML PLUS Finance 1 for Ci Additional Products Finance 1 Windows and Modules Gen 4 Gen 5 Gen 1 Gen 2 Gen 3 SaaS RDMS PC Internet $1b+ of R&D investment over 38 years 10
Slide 11: A new long-term target $1b+ ARR by FY30
A new long-term target $1b+ ARR by FY30 We continue to Our Total We will continue to invest in R&D to Addressable Market double in size every build future is $13.5b 5 years platforms for growth 11
Slide 12: Total Addressable Market $13.5b Multiple Platforms for Growth
Total Addressable Market $13.5b Multiple Platforms for Growth Strong Net Revenue Retention (NRR) of 115-120% Grow: Significant ARR whitespace in our APAC customer base Continuing growth in new logos in APAC ARR Continuing growth in the UK Build: Solution as a Service is a gamechanger, lifts ARR by 4
Slide 13: CourseLoop Acquisition
CourseLoop Acquisition • Acquired in November 2024 • Broadens our market-leading OneEducation solution to include Curriculum Management Strategic Deeper Intellectual Property Functionality In our Higher Education Mission-critical functionality vertical Only Global SaaS GTM in UK Platform Improve
Slide 14: Outlook for FY25 is strong
is a game changer and a key platform for growth Outlook for FY25 is strong Discussed later in more detail 14
Slide 15: H1 FY25 Results
H1 FY25 Results Profit ARR growth Rule of 40* growth driven by 49% 33% SaaS+ to $81.9m (NPBT) Up 21% to $511.1m +5 ppt (H1 FY24: 44%) * Rule of 40 is defined as the sum of ARR growth and the 12-month rolling free cash flow margin post tax (free cash flow as a percentage of ARR) 15
Slide 16: Rule of 40
Rule of 40 A track record of strong profit growth Continue to target a greater than Rule of 40 outcome as we focus on growth & profitability 12-Month Rolling Free Cash Flow ($m) ARR ($m) & Growth (%) Rule of 40* (%) & Free Cash Flow Margin (%) +28.8% +49.4% +20.7% $147m +44.3% 28.8% +43.5% $511m +20
Slide 17: H1 FY25 Financial Highlights
H1 FY25 Cale Financial Bennet Highlights Chief Financial Officer 17
Slide 18: H1 FY25 Results Summary
H1 FY25 Results Summary SaaS+ delivers Drives ARR through $500 million – 18 months H1 FY25 H1 FY24 VAR VAR ahead of target $m $m $m Total ARR 511.1 423.6 87.5 21% UK ARR 43.1 28.8 14.3 50% UK Sales ARR 4.3 2.7 1.6 61% Profit ARR SaaS & Recurring Revenue 265.0 223.1 41.9 19% growth growth Total Reven
Slide 19: H1 FY25 Profit and Loss
H1 FY25 Profit and Loss Record first half revenue (up 19% to $291.3m) and profit (up 33% to $81.9m) 19
Slide 20: CourseLoop Acquisition
CourseLoop Acquisition World-leading Curriculum Management product strengthens OneEducation • Our 19th product 5 months to 31 Mar 2024 • $60 million purchase price $’M • $9.1 million ARR at acquisition close Revenue: SaaS & Recurring 4.7 • Sales profile is strong with full-year Other Revenue 0.0 for
Slide 21: Balance Sheet: Remains Strong
Balance Sheet: Remains Strong Clean balance sheet with no debt and significant cash holding enables flexibility 21
Slide 22: R&D Investment
R&D Investment • Driving sustained growth through strategic, consistent investment • Continue to manage R&D investment within total cost base We invest in R&D for long term 26% 180.00 25% 25% 26% growth 25% 160.00 24% 24% 23% We expect to maintain R&D investment at 20-25% of revenue 140.00 22% 120.0
Slide 23: Cash Flow
Cash Flow Strong Operating Cashflow enabled by consistent performance 23
Slide 24: Interim dividend up 30% to 6.60 cps
Interim dividend up 30% to 6.60 cps Dividend track record continues Increased profit enables dividend uplift • H1 FY25 NPAT before tax up 33%, enabling dividend uplift of 30% • Strong balance sheet supports dividend • Payout ratio 35% (FY24 interim: 34%), will be in the 55-65% range for FY25 • Divid
Slide 25: H1 FY25 Significant achievements
H1 FY25 Stuart Significant Macdonald achievements Chief Operating Officer 25
Slide 26: All verticals performed strongly
All verticals performed strongly • ARR of $511.1m1 up 21% from $423.6m (H1 FY24) • Our APAC market penetration in any single vertical does not exceed 15%2 of Addressable Market • Significant room to grow in future years Local Education Government Health & Asset & Project Financials & Government Comm
Slide 27: Path to ERP in days
Path to ERP in 30 days 300 140 Powered by 126 Days to implement 30 2024 2025 2026 2027 2028 27
Slide 28: SaaS+ lifts ARR by 40%
SaaS+ lifts ARR by 40% Solution as a Service Planning Serv ices 28
Slide 29: Customer wins: TasTAFE and Islington
• The addition of TasTafe adds to the • First London borough to implement • The Federal Government introduced 65% of Australian TAFE Institutes TechnologyOne’s solutions a new procurement panel for ERP that use one or more of our • Islington is the second most densely solutions. This was the first O
Slide 30: Total ARR and Average ARR per Customer
Total ARR and Average ARR per Customer Maintaining Strong + Consistent ARR Growth On-prem to SaaS SaaS to SaaS+ $700m $0.5m $401k $600m $358k $0.4m $303k Total ARR per Customer $500m $511.1m $253k $256k $0.3m $226k $470.2m $215k $190k $400m $175k Total ARR $392.9m $0.2m $320.7m $300m $257.5m $0.1m $
Slide 31: Market Leading Net Revenue Retention and Churn
Market Leading Net Revenue Retention and Churn Maintaining NRR in Target Range Increased NRR driven by: 120% 120% 118% 119% 118% 118% • SaaS+ 117% 116% 116% 114% 114% 114% • Our specialised products for our verticals 112% 113% 112% 112% 112% 112% Target of 115%-120% 110% 110% 110% • Our specialised
Slide 32: H1 FY25 United Kingdom
H1 FY25 United Kingdom New Sales ARR • H1 FY25 sales for New ARR came in 61% $4.3m +61% higher than the pcp • H1 FY25 UK ARR of $43m is up 50% $2.7m compared to the pcp $1.9m • We are continuing to invest for growth in the $1.1m UK H1 FY22 H1 FY23 H1 FY24 H1 FY25 ARR $43.1m +50% $28.8m $21.2m $17.7m
Slide 33: Significant R&D Investment
Significant R&D R&D investment of $112.0m up Continuous Investment 21% R&D staff 459 new Fastest investment For future growth features Adoption AI DxP Build an app Google to faster without outcome having to code experience SaaS+ ERP in 30 Solution as a Service R&D 24% of App Builder New Products inv
Slide 34: H1 FY25 Summary
H1 FY25 Record profit, revenue, and Interim Dividend R&D investment for future growth Summary ARR up 30% to 6.6 cps of $68.8m, up 21% pcp Total ARR Profit Rule of 40 UK ARR up 50% up 21% to Before Tax to $43.1m $511.1m up 33% +49.4% to $81.9m SaaS+ Delivers • Another step-up in Profit • 33% Profit B
Slide 35: FY25 Full-Year Outlook and Long-term Outlook
FY25 Full-Year Edward Outlook and Chung Long-term Chief Executive Officer Outlook 35
Slide 36: FY25 Full-Year Outlook
FY25 Full-Year Outlook Mission Critical Resilient Markets Software with Deep We Drive Innovation for our Customers Functionality SaaS+ is creating 40% Cost Savings for Improving margins from Significant Significant our Customers Economies of Scale Opportunities We will continue to A new long-term ta
Slide 37: FY25 Full-Year Outlook
FY25 Full-Year Outlook 19% 18% 16% • Strong track record of achieving 15% top of guidance 10% - 15% 12% - 16% • FY24 Profit guidance was stepped up in FY24 to 12% - 16% • We indicated this would continue FY21 FY22 FY23 FY24 to step-up in future periods • FY25 sees a further step-up in the growth ran
Slide 38: FY25 Full-Year Outlook
FY25 Full-Year Outlook 19% 18% FY25 Profit before Tax 16% 15% Growth of 13% - 17% 12% - 16% 10% - 15% 13-17% Another step up in Profit FY21 FY22 FY23 FY24 FY25 Growth guidance Actual Profit before Tax Growth Achieved Underpinned by strong Forecast Profit before Tax Growth Range ARR growth 38
Slide 39: Our People and Our Community
+37 Our People and Our Community 39
Slide 40: Long-Term Outlook: $1B+ ARR by FY30
Long-Term Outlook $1B+ ARR BY FY30 19 Products Multiple platforms $13.5B for growth Total Addressable Market 40
Slide 41: technology?
technology?’ Making life simple for our community
Slide 42: Appendices
Appendices Appendix A: H1 FY25 Profit by Segment Appendix B: Balance Sheet - H1 FY25 to H1 FY24 Appendix C: R&D - Disciplined and Transparent Appendix D: Drivers for Long Term Growth Appendix E: Glossary 42
Slide 43: Appendix A: H1 FY25 Profit by Segment
Appendix A: Geographic Segment Profit Analysis H1 FY25 Profit by Segment 1 Strong Group profit of $81.9m, up 33% on pcp $80.8m +34% $60.5m 1 Strong growth in profit of 34% growth in profit 1 46% driven by revenue 1 driven strong recurring uplift of 19% and APAC revenue growth $68.6m improvement in m
Slide 44: Appendix B: Balance Sheet – H1 FY25 to H1 FY24 Comparison
Appendix B: Balance Sheet – H1 FY25 to H1 FY24 Comparison 44
Slide 45: Appendix C: R&D - Disciplined and Transparent
Appendix C: R&D - Disciplined and Transparent H1 FY25 Software R&D Development - Percent Amortisation Amortisation Net Expense Investment Capitalised Capitalised Expense Period through P&L (#039;000) (#039;000) % (#039;000) Years (#039;000) FY22 92,197 50,060 54.3% 23,400 5 65,537 FY23 111,995 60,605 54.1% 34,0
Slide 46: Appendix D: Drivers for Long Term Growth
Appendix D: Drivers for Long Term Growth Increase Product Penetration Increase Market Penetration Expand Geographies 19 Licensable products1 6 Vertical markets1 APAC & UK1 Over 500+ licensable modules By Product By Vertical Asset New Zealand, 8.7% United App Builder, T&S, 4.9% Intensive, 3.8% 5.7% F
Slide 47: Appendix E: Glossary
Appendix E: Glossary Annual Licence ARR Annual Recurring Revenue relating to annual licence fees for On-premise customers APAC Asia Pacific - Includes Australia, New Zealand, Malaysia and the South Pacific ARR Annual Recurring Revenue ARR Sales New Annual Recurring Revenue sold during the period Chu
Slide 48: Making life simple for our community
technology?’ Making life simple for our community