annual general meeting - technologyone · pdf fileannual general meeting ... nt s pe r s h a r...

By Technology OneBusiness Software Solutions

www.TechnologyOneCorp.Com

November 2004Private and Confidential

Annual General MeetingAnnual General Meeting

Adrian Di MarcoExecutive 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 yearR&D tax concession

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Record R&D expenditure, up 3%R&D of $9.5m, representing 19% of revenueR&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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Dividends (cps) for the Year

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2001 2002 2003 2004

Year

Cen

ts p

er S

hare

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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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Initial licence fee revenue up 30%Licence fees to new customers up 22%Licence fees to existing customers up 51%

Finance One suite strongest performer22% increase in revenue over the previous yearInvolved in almost all deals




Review of Operations for 2004Review of Operations for 2004

Richley DownChief 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 GovernmentAdelaide City CouncilBaw Baw Shire CouncilBurdekin Shire CouncilCampbelltown City CouncilCity of SydneyKu-ring-gai CouncilLocal Government Association of QldWarwick Shire CouncilLaunceston City CouncilHastings District Council (NZ)Hutt City Council (NZ)Porirua City Council (NZ)South Taranaki District Council (NZ)

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RetailNew business sold:

– Timberland– Le Cornu

Purchasing/Supply Chain component of Retail One sold to over 45 Finance One customers

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State and Federal GovernmentACT RevenueAustralian Broadcasting AuthorityAustralian Maritime SafetyAustralian National Training AuthorityDepartment of the SenateMelbourne Water CorporationNational Native Title TribunalQld Competition AuthorityQld 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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Payroll/HR20 new contracts signedSold as “add on” to Finance One, not as best of breedPlayed an important part in winning Finance One deals such as Australian Maritime Safety Authority

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New Contracts - International

New ZealandAviation Security Electricity Ashburton LimitedHastings District CouncilHutt City CouncilInstitute of Chartered Accountants NZJacques Martin Marlborough Lines LimitedScenic Circle Hotels LimitedSouth Taranaki District CouncilThe Todd Corporation Territory Education CommissionPorirua City Council

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New Contracts - International

MalaysiaAlign Distribution Sdn BhdKUB Telekomunikasi Sdn BhdQuanterm Logistics Sdn BhdWCT Construction Sdn Bhd

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Project ServicesAustralian National Training AuthorityNSW Department of LandsQld Department of Public WorksQld Department of Primary IndustriesQld Department of Tourism, Fair Trading and Wine Industry DevelopmentSiemens Theiss CommunicationsVictoria Legal Aid

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Significant Achievements

CENTRAL REGION

New South WalesAdded 16 new clients including ICA and ABA and retail sale to Timberland Significant sales of Business OneAppointed a part time telemarketing resourceNSW have made two Biz One salesAppointment of local government account manager

ACTAdded three new clients including AMSA

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

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NORTH/WEST REGION

QueenslandAdded 14 new clients including the LGAQ, Burdekin Shire Council and ADIAchieved 191% of budget sales into the client baseTook Biz One to the market and made four Biz One sales

West AustraliaSuccessfully completed implementations for Westralia Airports and National Native Title Tribunal Opened new office in SubiacoFirst R&D centre outside Brisbane set up in Perth

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

TasmaniaWon Launceston City Council for Finance OneAchieved 198% of budgeted sales to existing clients

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INTERNATIONAL REGION

New ZealandAdded 12 new clients including Electricity Ashburton, TEC and four councilsWellington office opened and new BDM appointedStaff increased from five to 12Appointed new Country Manager

MalaysiaAdded four new clients including first Government Agency saleFocused on building a strong pipelineConsulting Manager added to team

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CorporateCreation of Product Marketing Group to focus on competitive marketing of products in specific vertical marketsAppointment of Corporate Presales ManagerStrengthened partnerships with Mat Man, ADI, EMS, Business Objects and Chameleon

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Finance One SuiteDelivery of the first connected intelligence release of Finance OneAppointment of new Product Business ManagerEstablishment 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 internetCommencement of the development of Work OneTake-up of a large number of our clients to Release 10.2

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Retail OneContinued steady growth in depth and breadth of product and number of clientsA 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 11.0A new retail presales person was appointed to bring additional focus to Retail One product sales

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People OneNumber of People One sites increased to 55Release 11.0 has been a major focus with significant product enhancementsTimesheet module has been delivered and extendedAppointment of specialist sales person

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Proclaim OneAddressed the requirements of the New Zealand market placeCommenced development of new Customer Relationship Management (CRM) featuresExtension of our eProclaim eBusiness productReleased Dataworks integrationCommencement of work on the ci release

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Student OneGenerated significant licence revenue from sales to existing clientsThree new releases during the year. Most sites moved to Release 2.4Release 2.5 includes a new Agents module and Release 2.6 shipped as a beta in May 2004Commenced 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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ADFMajor development activities completed by the ADF group

last year were:Customisable “Workplace” environment focused on rolesPortlets used to show alerts and KPIsImprovements to Installation and Deployment ProcessesAssistance to the product teams with the migration of their products to ci

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Delivered many fixed price projects on time & budget, including:Nine Network Australia – largest .NET Project in Australia, NSW Police - Court Notice ManagementACT Revenue Office –Project for Stamp Duty, Payroll Tax using Finance OneAccess 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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Launched Integrate One TeamProvides Product Integration and Customisation around Technology One ProductsAbility 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




Company Strategy and OutlookCompany Strategy and Outlook

Adrian Di MarcoExecutive 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 organisationBrings together all the disparate systems with an organisationStreamlining and automating business processesCollecting 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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Development of Release 1.0 of Finance One cicompleted

Undergoing Alpha and Beta testingExpected 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 2005Retail One ci – mid/late 2005Proclaim One ci – late 2005/early 2006Student One ci – mid/late 2006

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Company Themes





One Company

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

Single LoginOne 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 CommercialState and Federal GovernmentLocal GovernmentRetailHigher Education

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Example Roadmap

Financials

HR/PayrollCustomer Service(CRM)

Regulatory

Asset Maintenance

eCouncil

Property & Rating

One SolutionDeeply Integrated

Local Government Roadmap

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Company Themes





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 baseR&D , Partnerships or Acquisition

New modules:Business One – “BI out of the box”Purchase Cards – credit card managementXLOne Enterprise – under developmentAsset/project management – under developmentCommon cash receipting/POS – under developmentOthers – under discussions with our customers

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Company Themes





One Company

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Information at Your Fingertips

From Information to Business IntelligenceFrom Information to Business Intelligence

Man

agem

ent H

iera

rchy

Man

agem

ent H

iera

rchy

Casual UsersCasual Users

Power UsersPower Users

Management UsersManagement Users

Web ReportsWeb 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 timeright people, at the right time’’

Business Objects

XLOne Enterprise

Published Reports & KPIs to your homepage

Alerts and Reminders

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Themes



Extend our Product Breadth


One Company

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One Company

The only Enterprise vendor that takes total responsibility:

We develop the productWe marketWe implementWe support

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One Company

DONDON’’T BLAME US WE T BLAME US WE JUST SUPPLY THE JUST SUPPLY THE

STUFFSTUFFStory Headline Australian Financial Review Story Headline Australian Financial Review

26 November 200326 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, ITCLIENT AND THE PARTNER SOMETHING GOES WRONG, IT’’S A PITY S A PITY

BUT I WOULD SAY ITBUT I WOULD SAY IT’’S NOT S NOT THE RESPONSIBILITY OFTHE RESPONSIBILITY OF………”………”Henning Henning KagermannKagermann –– Chairman and ChiefChairman and Chief

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

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One Company

Increased focus on Customer Service

Created three Operating RegionsNorth/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 quicklyEscalation 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 2005Q1 slow quarter as forecasted given the strong finish in the last quarter of 2003/2004 yearQ2 expected to be a strong quarterThe cycle this year is more typical of pre Y2K cycleExpect continuing growth in 2005

Challenges for 2005 and 2006 are as follows:“Bed down” Finance One ci and establish it in the marketProgressively develop and release other ci products“Bed in” the new Regional Structure

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Outlook 2005+

Consolidation in the Enterprise market will continueConsolidation that is occurring today is not healthyLack of certainty on the future of these acquired products

Technology is also changing rapidlyMost Enterprise applications are over 10 years oldHTML based applications not suitable for most enterprise applicationsClient/Server applications will soon become legacy applications

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Outlook 2005+

TNE is well positioned for continuing strong growthConnected Intelligence seriesOne Deeply Integrated Solution strategyIncreasing Product Breadth Information At Your Fingertips focusOne 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




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