Annual General Meeting Annual General Meeting By Technology One - - PowerPoint PPT Presentation

By Technology One

Business Software Solutions

www.TechnologyOneCorp.Com

November 2004 Private and Confidential

Annual General Meeting Annual General Meeting

Adrian Di Marco Executive Chairman

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Agenda

2004 Results Highlight Review of Operations Company Themes Outlook

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2004 Full Year Results Highlight

Record Revenue of $50.6m, up 7% 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

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2004 Full Year Results Highlight Record R&D expenditure, up 3%

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% fully franked, based on a share price of 62 cents

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2004 Full Year Results Highlight

Dividends (cps) for the Year

0.00 0.50 1.00 1.50 2.00 2.50 3.00 2001 2002 2003 2004 Year Cents per Share

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2004 Full Year Results Highlight Adjusted ROE of 52%

Unadjusted ROE of 28%

Strong Operating Cash Flow of $12.3m compared to NPAT of $9.5m Debt/Equity of 3% 70 new customers added

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Over 500 Clients Use Our Enterprise Solutions

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2004 Full Year Results Highlight Initial licence fee revenue up 30%

Licence fees to new customers up 22% Licence fees to existing customers up 51%

Finance One suite strongest performer

22% increase in revenue over the previous year Involved in almost all deals

By Technology One

Business Software Solutions

www.TechnologyOneCorp.Com

November 2004 Private and Confidential

Review of Operations for 2004 Review of Operations for 2004

Richley Down Chief Operating Officer

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2003/04 Significant Achievements

Company Wide Achievements Regional Achievements Product Division Achievements Project Services Achievements

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Company Wide Highlights Record revenue and profits in all regions 70 new clients including nine Proclaim One sales and 16 international sales (vs 47 sales last year) Connected Intelligence series moved into Alpha and Beta testing for Finance One All other products continued strong development

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New Contracts by Sector Local Government

Adelaide 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 (NZ) South Taranaki District Council (NZ)

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New Contracts by Sector Retail

New business sold:

– Timberland – Le Cornu

Purchasing/Supply Chain component of Retail One sold to

• ver 45 Finance One customers

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New Contracts by Sector State and 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

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New Contracts by Sector

• General Commercial (Australia Only)
• Catholic Education – Wagga Wagga
• Outdoor Education Group
• 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 Accountants Australia
• JJ Richards E-Waste
• Little Company of Mary Healthcare Limited
• Magellan Petroleum
• Milura Pty Ltd
• OFM Investments
• Outsource Australia
• Port Kembla Coal Terminal
• Portland Coast Water
• PrixCar
• Secure Parking
• Softlink International Ltd
• Urban Maintenance System
• Walter and Eliza Hall Institute of Medical Research
• Westralia Airports Corporation
• OAMPS

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New Contracts by Sector Payroll/HR

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

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New Contracts - International New Zealand

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 Commission Porirua City Council

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New Contracts - International

Malaysia

Align Distribution Sdn Bhd KUB Telekomunikasi Sdn Bhd Quanterm Logistics Sdn Bhd WCT Construction Sdn Bhd

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New Contracts by Sector Project 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 Legal Aid

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Significant Achievements

CENTRAL REGION New South Wales

Added 16 new clients including ICA and ABA and retail sale to Timberland Significant sales of Business One Appointed a part time telemarketing resource NSW have made two Biz One sales Appointment of local government account manager

ACT

Added three new clients including AMSA

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Significant Achievements Victoria

Added 13 new clients Licences sold into our existing client base exceeded budget by 40% Decision taken to dedicate some consulting resources exclusively to the client base Appointed local part time telemarketing resource Successfully migrated 20 sites to Release 10.2 of Finance One

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Significant Achievements

NORTH/WEST REGION Queensland

Added 14 new clients including the LGAQ, Burdekin Shire Council and ADI Achieved 191% of budget sales into the client base Took Biz One to the market and made four Biz One sales

West Australia

Successfully completed implementations for Westralia Airports and National Native Title Tribunal Opened new office in Subiaco First R&D centre outside Brisbane set up in Perth

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Significant Achievements

South Australia

Added four new clients, including Flinders Ports, Adelaide City Council and Le Cornu a major Retail One sale Achieved a 450% Growth in licence fees to existing clients Achieved highest ever Consulting revenue for South Australia Moved to new Office at Fullarton Road Eastwood

Tasmania

Won Launceston City Council for Finance One Achieved 198% of budgeted sales to existing clients

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Significant Achievements

INTERNATIONAL REGION New Zealand

Added 12 new clients including Electricity Ashburton, TEC and four councils Wellington office opened and new BDM appointed Staff increased from five to 12 Appointed new Country Manager

Malaysia

Added four new clients including first Government Agency sale Focused on building a strong pipeline Consulting Manager added to team

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Significant Achievements

Corporate

Creation of Product Marketing Group to focus on competitive marketing of products in specific vertical markets Appointment of Corporate Presales Manager Strengthened partnerships with Mat Man, ADI, EMS, Business Objects and Chameleon

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Product Division Achievements

Finance One Suite

Delivery of the first connected intelligence release of Finance One Appointment of new Product Business Manager Establishment of a satellite development arm in Perth Development of integration between Finance One and Wasp Asset Maintenance Web enablement of "Support One" to enable customers to log and track their support calls via the internet Commencement of the development of Work One Take-up of a large number of our clients to Release 10.2

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Product Division Achievements

Retail One

Continued steady growth in depth and breadth of product and number of clients A major white goods retailer completed a pilot of Retail One and rolled out the system across the chain Another national retail chain completed the roll out of Point Of Sale to all of their stores Completed the development of Retail One Release 11.0 A new retail presales person was appointed to bring additional focus to Retail One product sales

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Product Division Achievements

People One

Number of People One sites increased to 55 Release 11.0 has been a major focus with significant product enhancements Timesheet module has been delivered and extended Appointment of specialist sales person

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Product Division Achievements

Proclaim One

Addressed the requirements of the New Zealand market place Commenced development of new Customer Relationship Management (CRM) features Extension of our eProclaim eBusiness product Released Dataworks integration Commencement of work on the ci release

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Product Division Achievements

Student One

Generated significant licence revenue from sales to existing clients Three new releases during the year. Most sites moved to Release 2.4 Release 2.5 includes a new Agents module and Release 2.6 shipped as a beta in May 2004 Commenced process of addressing the requirements of legislative changes. Next releases include a new module to allow interaction via web services with the new Higher Education Information Management system (HEIMS)

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Product Division Achievements

ADF

Major development activities completed by the ADF group last year were: Customisable “Workplace” environment focused on roles Portlets used to show alerts and KPIs Improvements to Installation and Deployment Processes Assistance to the product teams with the migration of their products to ci

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Project Services Achievements

Delivered many fixed price projects on time & budget, including:

Nine Network Australia – largest .NET Project in Australia, NSW Police - Court Notice Management ACT Revenue Office –Project for Stamp Duty, Payroll Tax using Finance One Access Queensland – Integrated Receipting System

Continued to provide ongoing software support and development for existing applications and facilities management services Won new business including significant agreements with Victorian Legal Aid and Queensland Legal Aid

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Project Services Achievements

Launched Integrate One Team

Provides Product Integration and Customisation around Technology One Products Ability for the Regions to provide total solution to Technology One Customers

Technology One awarded Gold Partner status with Microsoft in recognition of the outstanding projects conducted

By Technology One

Business Software Solutions

www.TechnologyOneCorp.Com

November 2004 Private and Confidential

Company Strategy and Outlook Company Strategy and Outlook

Adrian Di Marco Executive Chairman

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Company Themes

Connected Intelligence One Deeply Integrated Solution Extend Our Product Breadth Information At Your Fingertips One Company

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Connected Intelligence – What Is It Really?

An evolution towards the future…..

“Green Screen” “Client Server” “Web” “Ci – The Smart Client” “Beyond”

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Connected Intelligence – What Is It Really?

More than just a technology refresh project utilising Microsoft .NET technology New generation of our enterprise applications:

That engage employees, suppliers, customers etc. – everyone that interacts with an organisation Brings together all the disparate systems with an organisation Streamlining and automating business processes Collecting data at the source, and to provide real time information for better decision

Allow us to take our Intellectual Property (and that acquired from others) to build powerful new generation of applications

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Connected Intelligence Development of Release 1.0 of Finance One ci completed

Undergoing Alpha and Beta testing Expected to be available for LD in early 2005

Development of other ci products progressively released over the next two years as follows:

People One ci – mid/late 2005 Retail One ci – mid/late 2005 Proclaim One ci – late 2005/early 2006 Student One ci – mid/late 2006

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Company Themes

Connected Intelligence One Deeply Integrated Solution Extend Our Product Breadth Information At Your Fingertips One Company

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One Deeply Integrated Solution We started with products:

Finance One (Financial Management) People One (HR and Payroll) Retail One (Retail and Supply Chain) Student One (Student Administration) Proclaim One (Rating and Property)

Best of breed is no longer the preferred approach by customers The future is about delivering deeply integrated solutions

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One Deeply Integrated Solution

New type of very deep integration that goes beyond simple “drill down” of information:

Single Login One Workplace with everything on it

– HR, Financials, Supply Chain, Property/Rating Info, Student Info etc..

One common Alert, Workflow and KPI engine across everything

Our Solution Roadmap is now defined for each of our major verticals

General Commercial State and Federal Government Local Government Retail Higher Education

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Example Roadmap

Financials HR/Payroll Customer Service (CRM) Regulatory Asset Maintenance eCouncil Property & Rating

One Solution Deeply Integrated Local Government Roadmap

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Company Themes

Connected Intelligence One Deeply Integrated Solution Extend Our Product Breadth Information At Your Fingertips One Company

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Extend our Product Breadth

Extend our solutions by adding more functionality

Identify “modules” with an appeal across a large part of our customer base R&D , Partnerships or Acquisition

New modules:

Business One – “BI out of the box” Purchase Cards – credit card management XLOne Enterprise – under development Asset/project management – under development Common cash receipting/POS – under development Others – under discussions with our customers

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Company Themes

Connected Intelligence One Deeply Integrated Solution Extend Our Product Breadth Information At Your Fingertips One Company

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Information at Your Fingertips

From Information to Business Intelligence From Information to Business Intelligence Management Hierarchy Management Hierarchy

Casual Users Casual Users Power Users Power Users Management Users Management Users

Web Reports Web Enquiries

Business Intelligence

Drag & Analyse Standard Enquiries/Reports

(User Customisable)

Business One (BI “out of the box”) COGNOS

‘ ‘Delivering information to the Delivering information to the right people, at the right time right people, at the right time’ ’

Business Objects XLOne Enterprise Published Reports & KPIs to your homepage Alerts and Reminders

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Themes

Connected Intelligence One Deeply Integrated Solution Extend our Product Breadth Information At Your Fingertips One Company

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One Company

The only Enterprise vendor that takes total responsibility:

We develop the product We market We implement We support

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One Company

DON DON’ ’T BLAME US WE T BLAME US WE JUST SUPPLY THE JUST SUPPLY THE STUFF STUFF

Story Headline Australian Financial Review Story Headline Australian Financial Review 26 November 2003 26 November 2003

“ “IF IT HAPPENS THAT IN THE RELATIONSHIP BETWEEN THE IF IT HAPPENS THAT IN THE RELATIONSHIP BETWEEN THE CLIENT AND THE PARTNER SOMETHING GOES WRONG, IT CLIENT AND THE PARTNER SOMETHING GOES WRONG, IT’ ’S A PITY S A PITY BUT I WOULD SAY IT BUT I WOULD SAY IT’ ’S NOT S NOT THE RESPONSIBILITY OF THE RESPONSIBILITY OF………” ………”

Henning Henning Kagermann Kagermann – – Chairman and Chief Chairman and Chief

One Company, One Relationship One Company, One Relationship…… …….Our Responsibility .Our Responsibility

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One Company

Increased focus on Customer Service Created three Operating Regions

North/West - Roger Phare (QLD, TAS, SA, WA, NZ, NT) Central

• Mark Culverson (NSW, VIC, ACT)

International - Richley Down

An Operating Officer/Executive assigned to each region Greater focus to handle customer problems quickly

Escalation procedure with Direct Executive involvement when needed

Executive team has direct influence on R&D to ensure speedy resolution of issues

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Outlook 2005

Outlook for 2005

Q1 slow quarter as forecasted given the strong finish in the last quarter of 2003/2004 year Q2 expected to be a strong quarter The cycle this year is more typical of pre Y2K cycle Expect continuing growth in 2005

Challenges for 2005 and 2006 are as follows:

“Bed down” Finance One ci and establish it in the market Progressively develop and release other ci products “Bed in” the new Regional Structure

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Outlook 2005+ Consolidation in the Enterprise market will continue

Consolidation that is occurring today is not healthy Lack of certainty on the future of these acquired products

Technology is also changing rapidly

Most Enterprise applications are over 10 years old HTML based applications not suitable for most enterprise applications Client/Server applications will soon become legacy applications

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Outlook 2005+ TNE is well positioned for continuing strong growth

Connected Intelligence series One Deeply Integrated Solution strategy Increasing Product Breadth Information At Your Fingertips focus One Company business model

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After Word

These slides are available from the company’s web site, under the Investor Relations section:

www.TechnologyOneCorp.com

By Technology One

Business Software Solutions

www.TechnologyOneCorp.Com

November 2004 Private and Confidential

Annual General Meeting Annual General Meeting