Technology One Limited · ASX:TNE
Technology One — H1 2010 Earnings Presentation
39 slides from Technology One's earnings presentation, May 2010
Slide 1: Results Presentation Half Year Ending March 2010
Results Presentation Half Year Ending March 2010 Adrian Di Marco Executive Chairman www.TechnologyOneCorp.com Commercial in confidence May 2010
Slide 2: TechnologyOne Overview
TechnologyOne Overview TechnologyOne develops, markets, sells, implements 1. ____ Click __ to ____edit_____ Master ____ text______ styles and supports a new generation enterprise solution _____Second_____ specifically levelat seven vertical markets: targeted ____ • Third _____ Local level22 Governme
Slide 3: TechnologyOne Overview: Products
TechnologyOne Overview Our enterprise solution consists of the following products: Business Intelligence 1. ____Click __ to TechnologyOne ____ edit_____ Financials Master ____ text______ styles Human _____ Second _____ TechnologyOne level Supply Chain Enterprise Supply Chain Resource & Payroll Perfo
Slide 4: TechnologyOne Overview: Offices
TechnologyOne Overview Offices 1. ____ in__ ClickAustralia, to ____ New_____ edit Zealand, Master ____ text______ styles Asia and, more recently, the United _____Second Kingdom _____ level ____Third Growing _____level44 business in the United _____ Fourth Kingdom _____level ____Fifth Major _____ sup
Slide 5: Agenda
Agenda 2010 Half Year Results 1. ____ Click __ to ____ Significant Master edit_____ ____ Achievements text ______ styles _____ Second _____level Outlook for Full Year ____ Third _____ level55 Long Term Outlook _____ Fourth _____ level ____ Fifth _____ level 5
Slide 6: 2010 Half Year Results
2010 Half Year Results 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level66 _____ Fourth _____ level ____ Fifth _____ level Net Profit After Tax $5.7m, up 47% (up $1.8m) Net Profit Before Tax $6.9m, up 38% (up $1.9m) Revenue $59.2m, up 6%
Slide 7: Results Highlights
2010 Half Year Results Results Highlights 1. ____ Click__ Continuing to ____ edit demand for our_____ Master products in ____text a difficult ______ styles operating environment: 6% increase in licence fees _____ Second Cost _____ Growth level Control initiatives working – expenses up 3% vs up 17% a
Slide 8: Cash & Cash Equivalents
2010 Half Year Results Cash & Cash Equivalents 1. ____ Click __ to____edit_____ Master ____ text______ styles _____ Second_____ level ____ Third _____level88 _____ Fourth_____level Balance sheet strong ____ Fifth _____ level Cash and Equivalents: $26.1m (vs $14.3m pcp) • Includes short term investme
Slide 9: Half Year 2010 v Half Year 2009
2010 Half Year Results H1 H1 2010 Variance Half Year 2010 v Half Year 2009 2009 % $'000 $'000 $'000 1. ____ Click __ to ____ edit_____ Revenue excl interest Master ____ text______ styles 58,696 55,465 3,231 6% _____ Second _____level Expenses (excl R&D, Depn, Forex & Amortisation) 37,861 37,002 859
Slide 10: Half Year 2010 v Half Year 2009 Ratios
2010 Half Year Results H1 H1 Half Year 2010 v Half Year 2009 2010 Variance % 2009 1. ____ EPS cents Click__ to Reported ____ edit_____ Master ____ text______ styles 1.90 1.30 0.60 47% _____ DPS cents -Second standard_____ level 1.33 0.88 0.45 51% Dividend Payout Ratio 70% 68% ____ Third EBITDAR Marg
Slide 11: Year History – Full Years
10 Year History – Full Years 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level1111 _____ Fourth _____ level ____ Fifth _____ level TechnologyOne has been doubling in size, on average every 4 years over the last 10 years Average compound g
Slide 12: Revenue Stream
Revenue Stream 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level1212 _____ Fourth _____ level ____ Fifth _____ level Revenue $59.2m, up 6% (up $3.3m) Initial licence fees $14.1m, up 6% (up $829k) Annual licence fees $18.8m, up 15% (up $2.
Slide 13: Product - Licence Fee Analysis
Product - Licence Fee Analysis Timing issue in licence fees 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level1313 _____ Fourth _____ level ____ Fifth _____ level Initial licence fees $14.1m, up 6% (up $829k) Corporate Performance Manageme
Slide 14: Product - Licence Fee Analysis
Product - Licence Fee Analysis 1. Good ____ pipeline Click __ to ofedit ____ opportunities _____ Master continue textinto ____ the second half ______ styles _____ Second Expect _____ level continuing strong growth in Licence Fees in all areas, except Student ____ Third Management _____level1414 in t
Slide 15: Geographical Analysis
Geographical Analysis 1. ____ Click __ to ____ edit_____ Master ____ text______ styles _____ Second _____level ____ Third _____ level1515 _____ Fourth _____ level ____ Fifth _____ level Initial licence fees $14.1m, up 6% (up $829k) Australia is $13.1m, up 14% (up $1.6m) Asia Pacific is $990k, down 2
Slide 16: 2010 Half Year Results Summary
2010 Half Year Results Summary 1. Increased ____ __ revenues Click to editand ____ licence____ _____ Master fees in a______ text difficult styles market _____ Second Cost _____ growth levelhave worked and delivered operating leverage initiatives ____ •Third _____ Revenue level1616 up 6% vs Profit Be
Slide 17: Agenda
Agenda 2010 Half Year Results 1. ____ Click __ to ____ Significant Master edit_____ ____ Achievements text ______ styles _____ Second _____level Outlook for Full Year ____ Third _____ level1717 Long Term Outlook _____ Fourth _____ level ____ Fifth _____ level 17
Slide 18: Significant Achievements: United Kingdom
Significant Achievements United Kingdom loss of $1.1m Significant 1. ____Click __impact to ____ caused edit by the GFC _____ Master ____ text______ styles Substantially less business _____ Second _____ level Highly competitive ____ Third Risk _____ averselevel1818 to a new entrant such as Technology
Slide 19: Significant Achievements: United Kingdom
Significant Achievements United Kingdom Significant 1. ____ Click__action to taken ____editin_____ the last 3____ Master months: text______ styles • Have now divided UK into 2 regions, to create a _____ Second greater _____ focus level • Appointed ____ Third_____a new regional manager in the South l
Slide 20: Significant Achievements: Asia Pacific
Significant Achievements Asia Pacific – Licence Fees $990k, down 26% (down $356k) 1. ____ Click Asia __ to____ Pacific – edit _____ Master New Zealand ____ South text______ styles _____ •Second _____ Licence level fees $602k, up 42% (up $177k) ____ Third Asia _____level2020 Pacific – New Zealand Nor
Slide 21: Significant Achievements: Solution Focus
Significant Achievements Solution Focus Build, demonstrate, sell and implement a ‘best practice, pre-configured out 1. ____Click of the __solution box’ to ____edit for _____ Master our ____ text key vertical ______ styles markets _____ • Second Change _____ level from ‘tell us what you want and we w
Slide 22: Solutions Focus
Solutions Focus Significant investment made over the last six months in our new Solutions 1. ____Click Group: __ nowto ____ edit_____ consists Master of ____ 14 staff, text and ______ styles will continue to grow _____ InitialSecond ‘best _____ level practice, pre-configured’ solutions to be shipped
Slide 23: Cost Growth Control Initiatives
Significant Achievements Cost Growth Control Initiatives 1. ____Click Focus __ to ____editthe on controlling _____ Master growth ____text in our ______ styles expenses _____ Second_____ Initiatives: level ____ •Third _____ Resource level2323 re-balancing across R&D projects _____ •Fourth Head_____ c
Slide 24: New R&D Centre
Significant Achievements New R&D Centre New ‘state of the art’ R&D centre and corporate head-office opened in 1. ____ Click__ (May Queensland to ____ edit 2010)_____ Master ____ text______ styles _____ Second_____ level Consolidate 3 locations in Brisbane into one ____Third _____level2424 Improve co
Slide 25: New R&D Centre: Impact on P&L
Significant Achievements New R&D Centre Impact on P&L is an estimated extra $2.5m in 2010 (incurred in half 2): Accounting policy – straight-line rent increases over the term of the lease $223k (half year, ongoing) 1. ____Click Extra __spaceto office ____ edit(additional contracted _____ Master 25%)
Slide 26: Significant new contracts across vertical markets
Significant Achievements Significant new contracts, across all our major vertical markets 1. ____ Click Victorian __ Colleges TAFE to ____edit(13_____ ofMaster ____ 18 colleges) text ______ stylesAirport Newcastle _____Second Carnegie _____ College UK level UnityWater ____ Third Kangan _____ Batman
Slide 27: Financials & Supply Chain and Corporate Performance Management
Significant Achievements 1. Financials ____ __ &to Click Supply editChain ____ _____- continues Master ____ textto ______ be strong styles _____ Second Good_____ pipelinelevel of opportunities in the second half to deliver overall strong growth over the full year ____Third _____ level2727 Corporate
Slide 28: Student Management and CRM
Significant Achievements Student Management – strong performance now and going forward 1. ____ •Click New__ to ____ managementedit _____ team Master ____ working well text______ styles • Ci stabilisation now finished _____ Second _____ level • Good reference sites ____Third _____ level2828 • Recent
Slide 29: Works & Assets and Property & Rating
Significant Achievements Works & Assets – significant opportunities, but at a pivotal point • Now targeting more sophisticated Works & Assets opportunities 1. ____ •Click New__ to ____ General edit_____ Manager Master ____ appointed with text ______ styles substantial experience and track record in
Slide 30: HR & Payroll and Enterprise Content Management
Significant Achievements HR & Payroll – improving slowly, but at a crucial point • The $600k loss in H1 is a significant improvement (vs $1.1m loss pcp) 1. ____ •Click__lossto $900k ____ edit_____ expected forMaster ____ the full year text (vs ______ $1.9m styles loss pcp) New R&D •Second _____ ____
Slide 31: Agenda
Agenda 2010 Half Results 1. ____ Click __ to ____ edit_____ Master ____ text Significant ______ styles Achievements _____ Second _____level Outlook for Full Year ____ Third _____ level3131 Long Term Outlook _____ Fourth _____ level ____ Fifth _____ level 31
Slide 32: Outlook for Full Year
Outlook for Full Year Operating 1. ____ Click __Environment to ____ remains edit_____ Master challenging ____ text______ styles _____ Second_____ Aggressive level tactics by our competitors ____ Third_____ Delayed level3232 decisions _____ Fourth _____ level Contract negotiations taking longer ____
Slide 33: Outlook for Full Year: Expenses
Outlook for Full Year Expenses are expected to grow less 1.____than Clickthey to __ have ____ in prior edit _____ Master ____ text______ styles years _____Second _____ level Cost Growth Control initiatives ____ Third _____ level3333 implemented in 2009 will have a continuing positive impact in 2010
Slide 34: Outlook for Full Year: Revenue & Licence Fees
Outlook for Full Year 1. Continuing ____Click __ to growth editin_____ ____ Revenue____ Master &text Licence Fees ______ styles • Strong committed annual licence fees revenue in June and July _____ Second_____ level • Good pipeline of opportunities in second half ____ Third _____ level3434 We expect
Slide 35: Agenda
Agenda 2010 Half Results 1. ____ Click __ to ____ edit_____ Master ____ text Significant ______ styles Achievements _____ Second _____level Outlook for Full Year ____ Third _____ level3535 Long Term Outlook _____ Fourth _____ level ____ Fifth _____ level 35
Slide 36: Long Term Outlook: Improved Profit Margin
Long Term Outlook Improved Profit Margin 1. ____ ProfitClick__ has margin to ____edit_____ Master contracted over ____ text______ styles _____ the Second last 10 _____ level years as we have expanded ____ Third our level3636 _____ product range, invested in Ci, extended our _____ Fourth _____ level
Slide 37: Long Term Outlook: Improved Product Contribution
Long Term Outlook Improved Product Contribution 2009 We1. have ____ invested Click __ to heavily ____edit_____ Master ____ text______ styles in our new products over _____ Second _____ the last 9 years level ____ Third _____ level3737 Opportunity to _____Fourth substantially _____ grow level the 90%
Slide 38: Long Term Outlook
Long Term Outlook Remains strong because of our clear and compelling value proposition: Enterprise Suite – one of a few companies globally with an enterprise solution 1. ____ Click Connected __ to ____edit Intelligence – the_____ Master first ____ textenterprise new generation ______ styles solution
Slide 39: Results Presentation Half Year Ending March 2010
Results Presentation Half Year Ending March 2010 Adrian Di Marco Executive Chairman www.TechnologyOneCorp.com Commercial in confidence May 2010