presentation at the ubs emerging companies conference the
play

_____ _____ presentation at the UBS Emerging Companies conference. - PowerPoint PPT Presentation

____ __ ____ _____ ____ ______ Technology One Ltd UBS Presentation _____ _____ ____ _____ 4 April 2012 - Technology One Ltd (ASX:TNE) today conducted a _____ _____ presentation at the UBS Emerging Companies conference. ____ _____ The attached


  1. ____ __ ____ _____ ____ ______ Technology One Ltd UBS Presentation _____ _____ ____ _____ 4 April 2012 - Technology One Ltd (ASX:TNE) today conducted a _____ _____ presentation at the UBS Emerging Companies conference. ____ _____ The attached presentation was given at this meeting by the company’s Executive Chairman, Mr Adrian Di Marco. These slides have been lodged with the ASX and are also available on the company’s web site: www.TechnologyOneCorp.com.

  2. UBS Emerging Companies Conference Adrian Di Marco Adrian_Dimarco@TechnologyOneCorp.com Final Commercial in confidence April 2012

  3. Agenda  Overview ____ __ ____ _____ ____ ______  Revenue Model _____ _____  What makes Us Different ____ _____ _____ _____  Strategic Initiatives ____ _____  Future Growth  Improved Margins  Long Term Outlook

  4. ____ __ ____ _____ ____ ______ _____ _____ ____ _____ TechnologyOne is an enterprise software vendor _____ _____ ____ _____

  5. TechnologyOne Overview Our enterprise solution consists of the following products :  Financials ____ __ ____ _____ ____ ______  Supply Chain _____ _____  Asset Management ____ _____  Human Resource & Payroll  Corporate Performance Management _____ _____ • Business Intelligence ____ _____ • Budgeting & Forecasting • Performance Planning  Enterprise Content Management (ECM)  Customer Relationship Management (CRM)  Student Management  Property & Rating  Mobile Solutions

  6. The Competitive Landscape ORACLE SAP/R3 New expanding market coverage ____ __ ____ _____ ____ ______ $1,000m _____ _____ Current market coverage TechnologyOne ____ _____ _____ _____ Microsoft Business Solutions $100m ____ _____ SAP/Business One Infor (Sun Systems) $30m Reckon CLIENT TURNOVER MYOB

  7. TechnologyOne Overview TechnologyOne targets seven vertical markets: ____ __ ____ _____ ____ ______ • Local Government _____ _____ • Government (State, Central and Federal) ____ _____ • Education _____ _____ • Financial Services • Health, Community Services and Not for Profit ____ _____ • Utilities • Managed Services – Media/Entertainment – Property and Construction – Mining and Exploration

  8. 900+ High Profile Customers ____ __ ____ _____ ____ ______ _____ _____ ____ _____ _____ _____ ____ _____

  9. TechnologyOne Overview  Offices in Australia, New Zealand, ____ __ ____ _____ ____ ______ Asia and more recently, South Pacific and the United Kingdom (UK) _____ _____  One of Australia’s largest software ____ _____ houses _____ _____  Specialise in the research, ____ _____ development and commercialisation of software – invest $32m+ in R&D each year  All R&D is fully expensed in the year it is incurred

  10. TechnologyOne Overview Diversity of revenue streams from multiple: ____ __ ____ _____ ____ ______ • Geographies _____ _____ – All states of Australia, New Zealand, Asia and more recently UK • Products ____ _____ – Financials, HR/Payroll, SupplyChain, Asset Management, Property, Students, CRM, CPM, ECM, Mobile etc.. _____ _____ • Vertical markets ____ _____ – Local Government, State/Federal Government, Higher Education, Financial Services, Health & Community Services, Utilities, Managed Services

  11. Historical Performance Strong financial track record … ____ __ ____ _____ ____ ______ Doubling in size approx every 4 years for 15 years   _____ _____ Continually profitable since 1992 (20 years) Revenue ____ _____ Continually paid dividend since 1996 (16 years)  _____ _____ Cash and Equivalents $45.4m  ____ _____ Return on Equity 30+%  Debt/Equity 14%   Interest Cover 50

  12. Historical Performance Key metrics over last 15 years … 80  Revenue - 22% per annum compound ____ __ ____ _____ ____ ______ 70 60 _____ _____  Even through the Dot-Com and GFC 50 $'m  Initial Licence Fees - 22% per annum compound ____ _____ 40  Annual Licence Fees - 27% per annum compound _____ _____ 30  Profit Before Tax - 20% per annum compound ____ _____ 20  Dividends - 23% per annum compound 10  Net Assets - 28% per annum compound - 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Profit Before Tax Initial Licence Fees Annual Licence Fees Dividends Net Assets Doubling in size every 4 years for last 15 years

  13. Agenda  Overview ____ __ ____ _____ ____ ______  Revenue Model _____ _____  What makes Us Different ____ _____ _____ _____  Strategic Initiatives ____ _____  Future Growth  Improved Margins  Long Term Outlook

  14. Revenue Model  Initial Licence - based on usage ____ __ ____ _____ ____ ______ Matrix of licensable modules (approx 300 modules over 10 products), number of users • _____ _____ Once off • ____ _____  Implementation Services - fee for service _____ _____ • $1.20 Services : $1 Initial licence ____ _____ • Once off  Annual Licence Fee 22.5% of Initial Licence • Re-occurring every year •

  15. Revenue Model Annual Initial Implementation Annual Annual Initial Licence …. Service Licence Licence Licence ____ __ ____ _____ ____ ______ Purchase _____ _____ -Specified: Products, Modules, No of Users ____ _____ Annual Initial Annual Annual Increase Licence …. Licence Licence Licence _____ _____ No of Users ____ _____ Annual Annual Implementation Initial Buy Additional Licence Licence …. Service Licence Modules Initial Annual Implementation Annual Buy New Licence Licence …. Service Licence Product

  16. Revenue Model ____ __ ____ _____ ____ ______ _____ _____ ____ _____ On average our customers have 3 products _____ _____ (out of a product range of 10) ____ _____

  17. TechnologyOne Overview Strong, very loyal blue chip FY11 New Other customer base Non-Recurring ____ __ ____ _____ ____ ______ ** 9% New Licence • We provide a mission _____ _____ 8% critical solution – ‘sticky ____ _____ customer base’ _____ _____ Existing 66% • 66% of our revenues New ASM 2% ____ _____ generated from existing customers each year New Consulting 15% – Annual licences, increase usage, new modules, new products, ** Plus and Product Modification ongoing services etc.. 66% of our revenue comes every year from existing customers

  18. Agenda  Overview ____ __ ____ _____ ____ ______  Revenue Model _____ _____  What makes Us Different ____ _____ _____ _____  Strategic Initiatives ____ _____  Future Growth  Improved Margins  Long Term Outlook

  19. What Makes Us Different  Enterprise Suite ____ __ ____ _____ ____ ______ • One of a few companies globally with an enterprise solution _____ _____  Own the IP to our software, which allows us to control our ____ _____ future _____ _____  Unique business model - Power of One ____ _____ • Unique approach - we build, market, sell, implement & support our products One Vision, One Vendor, One Experience • We ‘own’ the customer relationship •

  20. What Makes Us Different  Our focus on seven key vertical markets ____ __ ____ _____ ____ ______ Deep understanding of our target seven markets • _____ _____ Understand their value drivers • Know the universe of opportunities in each of our market • ____ _____  Preconfigured solutions for each of our markets - Reduce time, effort, cost and risk _____ _____ ____ _____

  21. What Makes Us Different 14 Preconfigured Solutions …  One Government ____ __ ____ _____ ____ ______  One Not For Profit  One Council _____ _____  One Grant ____ _____  One Housing  One Network _____ _____  One Health  One Water ____ _____  One Port  One Polytechnic  One Banking  One Care  One Community  One University

  22. Agenda  Overview ____ __ ____ _____ ____ ______  Revenue Model _____ _____  What makes Us Different ____ _____ _____ _____  Strategic Initiatives ____ _____  Future Growth  Improved Margins  Long Term Outlook

  23. Strategic Initiatives ____ __ ____ _____ ____ ______  New Offshore R&D Centre _____ _____  Compelling Customer Experience ____ _____ _____ _____  TechnologyOne Cloud ____ _____

  24. New Offshore R&D Centre R&D centre in Brisbane with 500+ staff ____ __ ____ _____ ____ ______ New offshore R&D centre to handle future growth _____ _____  To contain costs – operating leverage of offshore ____ _____ R&D staff _____ _____  To tap into a new pool of R&D talent outside of ____ _____ Australia  To improve support levels to our customers  Allow R&D in Brisbane to focus on new projects

  25. Strategic Initiatives ____ __ ____ _____ ____ ______  New Offshore R&D Centre _____ _____  Compelling Customer Experience ____ _____ _____ _____  TechnologyOne Cloud ____ _____

  26. Compelling Customer Experience (CCE) Customer retention is critical to our future success ____ __ ____ _____ ____ ______  Future of ERP is all about customer retention _____ _____  Our focus is to give our customers a compelling ____ _____ customer experience _____ _____  Compelling customer service - you will never ____ _____ hear SAP, Oracle and Microsoft talk about this  Developed our own Compelling Customer Experience (CCE) program

Recommend


More recommend