Technology One Limited · ASX:TNE

Technology One — Shareholder Meeting (February 2013)

37 slides from Technology One's shareholder meeting presentation, Feb 13, 2013

  1. Slide 1: Technology One Ltd Annual General Meeting

    Technology One Ltd Annual General Meeting 13 February 2013 - Technology One Ltd (ASX:TNE) today conducted its Annual General Meeting at the Brisbane Convention & Exhibition Centre. The attached presentation was given at this meeting by the company’s Executive Chairman, Mr Adrian Di Marco. These slid

  2. Slide 2: Annual General Meeting Presentation

    Annual General Meeting Presentation Year Ending September 30th 2012 Adrian Di Marco [email protected] Final Feb 2013 Commercial in confidence

  3. Slide 3: Agenda

    Agenda Ø Overview § Results § Company Update § Outlook for Full Year § Long Term Outlook

  4. Slide 4: TechnologyOne Overview

    TechnologyOne Overview Formed in Employees 300+ developers 800+ Revenue 1987 800+ R&D in centre customers - corporations, government $170m and statutory authorities One of Australia’s largest & most successful software companies Continually Doubles Invest20% 14 offices in profitable in size of reven

  5. Slide 5: TechnologyOne Overview: Financially very strong

    TechnologyOne Overview Financially very strong .... § Cash and Equivalents $51.1m § Adjusted Return on Equity* 70+% § Debt/Equity 10% § Interest Cover 50 § Continually paid dividends since 1996 (16 years) * Less surplus cash of $44m ; Unadjusted ROE is 32+%

  6. Slide 6: What makes Us Unique: one of only a few enterprise vendors

    What makes Us Unique ... We are one of only a few Enterprise Vendors globally ... ü Suite of 12 products ü Deeply integrated We believe in the ü Common platform freedom of choice our solution is ü Consistent user interface modular by design The power of a single, integrated, enterprise system

  7. Slide 7: What makes Us Unique: seven key markets

    What makes Us Unique ... We focus on seven key markets ... ü Deep understanding and engagement in our markets We sell to asset and ü Deeply integrated pre configured solutions service intensive ü Proven practice organisations. ü Streamlined implementations We do not service ü Reduce time, cost

  8. Slide 8: What makes Us Unique: no implementation partners or resellers

    What makes Us Unique ... We do not use implementation partners or resellers We take complete responsibility for building, marketing, selling, implementing and supporting our enterprise solution for each customer to guarantee long term success. The Power of One

  9. Slide 9: Our Vision

    Our Vision Clear & focused vision ... Transforming business, making life simple

  10. Slide 10: Key metrics over last 15 years

    TechnologyOne Overview 80 Key metrics over last 15 years … 70 ü Revenue - 20% per annum compound 60 § Even through the Dot-Com and GFC 50 $'m ü Initial Licence Fees - 18% per annum compound 40 30 ü Annual Licence Fees - 27% per annum compound 20 ü Profit Before Tax - 16% per annum compound 10 ü

  11. Slide 11: Agenda

    Agenda ü Overview Ø Results § Company Update § Outlook for Full Year § Long Term Outlook

  12. Slide 12: Results Summary

    Results Summary FY12 FY11 Variance %  Revenue $169.1m $156.7m 8%  Initial Licence Fees $35.4m $30.7m 15%  Consulting Services Fees $45.4m $41.7m 9%  Annual Licence Fees $63.7m $55.3m 15%   Expenses $138.7m $130.0m 7%  R&D Expenses * $33.5m $31.8m 5%  Expenses excl R&D $105.2m $98.2m 7%  Pro

  13. Slide 13: Results Highlights

    Results Highlights § Strong result given challenging and uncertain economic climate § Continued strong demand for our products: § 15% increase in Initial Licence fees § 15% increase in Annual Licence Fees § Higher end of guidance: Profit growth of 10% to 15% § Continued significant investments

  14. Slide 14: Balance Sheet

    Balance Sheet Strong balance sheet § Cash & Cash Equivalents $51.1m (vs. $45.4m) § Net Cash*: 13.7c/s (vs.11.2c/s) § Debt/Equity: 10% (vs. 14%) § Net Assets: $74m (vs. $68m) § Interest Cover: 50 times 60 Cash and Equivalents Up 13%, $5.8m 50 Compound Growth 21% 40 $'m 30 20 10 -­‐ 2008 2009 201

  15. Slide 15: Cash Flow

    Cash Flow Operating Cash Flow $28m, up 21% from $23.2m Sep11 § Operating Cash Flow $28m (vs NPAT of $23.6m) NPAT versus OperaEng Cash Flows 30 $28m 30 25 $23m 25 $'m $'m 20 20 $20.3m $23.6m 15 15 NPAT NPAT 10 10 5 5 0 0 2011 Opera<ng Cash Flows 2012

  16. Slide 16: Dividends

    2012 Full Year Results Dividends for this year 6.00 Dividend Compound Growth 8% up 10% § Half 1 1.61 cps up 10% (paid) 5.00 Cents per share 4.00 Ø Half 2* 3.48 cps up 10% (85% franked) 3.00 2.00 § Sub Total 5.09 cps up 10% 1.00 0.00 Ø Special Dividend** nil 2003 2004 2005 2006 2007 2008 2009 201

  17. Slide 17: Agenda

    Agenda ü Overview ü Results Ø Company Update § Outlook for Full Year § Long Term Outlook

  18. Slide 18: Company Update: Significant Achievements

    Company Update Significant Achievements Ø R&D § TechnologyOne Ci² § TechnologyOne Cloud § Other Initiatives

  19. Slide 19: R&D

    R&D R&D $33.5m, 20% of revenue, fully expensed as incurred The most ambitious R&D plan in the company’s 25 year history § R&D continuing across all our Ci products § R&D into our new Ci² product suite § R&D into new innovations, ideas and concepts § R&D into the TechnologyOne Cloud § New Off Sh

  20. Slide 20: Significant Achievements: TechnologyOne Ci²

    Company Update Significant Achievements ü R&D Ø TechnologyOne Ci² § TechnologyOne Cloud § Other Initiatives

  21. Slide 21: TechnologyOne Ci²

    TechnologyOne Ci² Ci² is the next generation of our Ci enterprise suite... ü Embrace new technologies, innovations & concepts ü Focus is Simplicity, Not Complexity ü Browser based – no more software installs & pervasive ü Apps and Enterprise App Store ü Native support for the Cloud Ø Support s

  22. Slide 22: Significant Achievements: TechnologyOne Cloud

    Company Update Significant Achievements ü R&D ü TechnologyOne Ci² Ø TechnologyOne Cloud § Other Initiatives

  23. Slide 23: Today – On Premise

    Today – On Premise The old way - Run your own hardware & systems On Premise Database Server N-tier Application Distributed Citrix Servers Servers Processors client A complex computing model Installation Servers

  24. Slide 24: What is cloud

    What is cloud The new way - Sign onto TechnologyOne Cloud service client Internet connection TechnologyOne Cloud ü Cloud- a simpler computing model

  25. Slide 25: The TechnologyOne Cloud

    The TechnologyOne Cloud TechnologyOne Enterprise Suite in the cloud today, delivered in a browser. TechnologyOne takes care of everything A simple and easy experience

  26. Slide 26: The TechnologyOne Cloud

    The TechnologyOne Cloud ü Partnerships with global Infrastructure As a Services (IAS) providers ü Data centres now commissioned in Sydney ü TechnologyOne Enterprise suite now optimised for the Cloud ü TechnologyOne Corporate now running on TechOne Cloud ü Early adopters starting early 2013 ü R

  27. Slide 27: Significant Achievements: Other Initiatives

    Company Update Significant Achievements ü R&D ü TechnologyOne Ci² ü TechnologyOne Cloud Ø Other Initiatives

  28. Slide 28: Other Strategic Initiatives

    Other Strategic Initiatives Advanced Initiatives ü Transformation of Consulting Business – One Consulting ü Transformation of R&D Business – One R&D ü Preconfigured Solutions – 14 solutions now available ü Compelling Customer Experience Training Program ü TechnologyOne Training College ü Unite

  29. Slide 29: Agenda

    Agenda ü Overview ü Results ü Company Update Ø Outlook for Full Year § Long Term Outlook

  30. Slide 30: Outlook for Full Year: Economic Environment

    Outlook for Full Year Economic Environment § The global economic climate remains uncertain, and challenging. § The enterprise software markets has been one of the most resilient sectors of the IT industry in recent years. § In particular TechnologyOne markets have remained robust: government and

  31. Slide 31: Outlook for Full Year: Profit growth to continue

    Outlook for Full Year 2013 Full Year - Profit growth to continue § We expect to see continuing growth in licence fees and revenue § We will need to once again carefully monitor and manage the sale cycle for potential contract delays given the economic climate Ø As in previous years we note that t

  32. Slide 32: Outlook for Full Year: Our focus next financial year

    Outlook for Full Year Our focus next financial year is ... § Leverage our broad & fast maturing product portfolio § Focus on our seven vertical markets – resilient & strong § Cross sell into our large existing customer base § Contain R&D costs

  33. Slide 33: Agenda

    Agenda ü Overview ü Results ü Company Update ü Outlook for Full Year Ø Long Term Outlook

  34. Slide 34: Improved Margins

    Improved Margins Net Profit Margin Before Tax Profit margin has contracted over the 35% last 10 years 30% 26% 26% § Expanded our product range investment 25% 25% 25% 21% 21% § Profit margin now started to improve, as 20% 17% 17% 17% 18% predicted 15% § Focus is to substantially improve margins 10%

  35. Slide 35: Control R&D Costs

    Control R&D Costs Control R&D expenses ... 2002 – 2011 R&D Compound Growth 16% § Leveraging our new Offshore R&D centre § Economies of scale

  36. Slide 36: R&D Growth Projections

    R&D Growth Projections Target set in 2011 - R&D growth of 8% per annum compound, over 5 years • This year we demonstrated this is achievable with R&D growth of 5% • Continues to be a very aggressive R&D program • Operating leverage & economy of scale • Assumes no Acquisitions in next 5 years 2011 Mo

  37. Slide 37: Transforming business, making life simple

    Bl techrolosyone Transforming business, making life simple

Technology One — Shareholder Meeting (February 2013) on 6ix