Cloud & Smart Mobile Devices

Transcription

1 Cloud & Smart Mobile Devices Blue Ocean Equities Conference Adrian Di Marco Adrian FINAL 4.0* Commercial in confidence March 2015

2 The Cloud Redefining business and IT

3 What have we learned?

4 Confusion in the Cloud Confusing and Complex IAAS PAAS SAAS Private Cloud Hybrid Cloud Under the covers you find the same players Amazon Microsoft Dimension Data

5 Long Term The Cloud

6 Henry Ford

7 Hosting - Customised For You Hand crafted to your specific needs

8 SaaS Mass Production Production line of servers running exactly the same software

9 SaaS Mass Production Economy of scale Massively scalable, Highly efficient, Cost effective Highly resilient & fault tolerant Elastic - add capacity dynamically Significant cost savings Future proof - We invest millions annually to make our production line and software quicker, better, faster Continuous improvement to our enterprise software - more functions, features and capabilities Continuous improvement to the production line - scalability, elasticity, reliability, security, privacy etc..

10 Hosting - Customised X Economy of scale X Highly resilient & fault tolerant X Elastic X Significant cost savings X Future Proof you only get what you pay for

11 Henry Ford Problem You can have any color as long as it's black. Henry Ford

12 SaaS Mass Production SaaS Highly Configurable Experience

13 Software as a Service Marriage of infrastructure and software to create a business service Guaranteed service level that encompasses infrastructure and software Guaranteed performance of business processes

14 Software as a Service Massive economy of scale Hosting No economy of scale Only a small number of companies globally doing SaaS

15 TechnologyOne Cloud TechnologyOne Cloud 5.0 Massively scalable, highly efficient and elastic Highly resilient & fault tolerant Highly Configurable own configuration Data is Secure own database Significant cost savings, No capex Simple & easy - We do it all Future proof - We invest millions of dollars annually Enterprise Software as a Service Future of Enterprise Software, Today

16 Status of TechnologyOne Cloud Launched Evolve Feb 2014 Early adopters program finished 11 customers now live, 26 in progress TechnologyOne Cloud 5.0 mid 2015 Start of our mass production architecture Strategy to grow this business New customers to the Cloud Existing on premise customers to Cloud Target of 100 customers end 2015

17 Transition of TechnologyOne to the Cloud Expect a smooth transition of our business model to the Cloud over next 5+ years Significant benefits for us as we transition our business to the Cloud Streamline our business, reduce costs Reduce time to market Increase innovation and creativity Improve our customers experience More resilient business model Strong competitive advantage

18 ANZ Competitive Landscape The Competitive Landscape New expanding market coverage Oracle SAP $1,000m Current market coverage TechnologyOne Microsoft Businss Solution INFOR (Sun Systems) SAP/Business One Xero Reckon MYOB NetSuite $30m $100m CLIENT TURNOVER Legend: Hosted SaaS

19 The Future is SaaS

20 Mobile Devices

21 Ci Anywhere Supports any and all mobile devices Support various form factors/sizes Adaptive behaviour Deep integration to the mobile devices Consumer software simple to use Beautiful software

22 Ci Anywhere Enterprise software Any device. Any where. Any time. Incredibly Simple

23 Status of Ci Anywhere Ci Anywhere Launched at Evolve Feb 2014 Early adopters in progress, positive feedback Deliver all our enterprise functionality on this platform over next 2 years Significant competitive advantage Enterprise software Any device. Any where. Any time.

24 Positioned well for the future Cloud first, mobile first world TechnologyOne Cloud Enterprise Software as a Service Ci Anywhere Any device. Any where. Any time.

25 $'m Historical Performance Key metrics over last 15 years Revenue - 15% per annum compound Even through the Dot-Com and GFC Initial Licence Fees - 15% per annum compound Annual Licence Fees - 22% per annum compound Profit After Tax - 13% per annum compound Dividends - 22% per annum compound Net Assets - 15% per annum compound Return on Equity 30+% Profit After Tax Annual Licence Fees Net Assets Initial Licence Fees Dividends Cloud & Smart Mobile Platform for our Continuing Growth Doubling in size every 5+ years for last 15 years

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

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28 Brief TechnologyOne Overview...

29 TechnologyOne Overview Formed in 1987 Employees developers in R&Dcentre corporations, government and statutory authorities Revenue $195+m One of Australia s most successful software companies Continually profitable for over 23 years Doubles in size Every 4+ years Invest 20% of revenue back into R&D 14 international offices in Australia New Zealand South Pacific Asia United Kingdom

30 1000+ high profile customers

31 TechnologyOne Overview Financially very strong¹... Cash and Equivalents $80.2m Return on Equity 30+% Adjusted Return on Equity² 76+% Debt/Equity 4% Interest Cover 168 Continually paid dividends since 1996 (19 years) Continually profitable since 1992 (23 years) 1 as at 30 th Sept Adjusted for net cash above required working capital, assumed at two months of staff costs

32 What makes us unique... We are one of only a few Enterprise Vendors globally... Single supplier of a suite of 12 products Best of Breed functionality Deeply integrated Common platform Consistent user interface Embraces new & emerging technologies We believe in the freedom of choice our solution is modular by design The power of a single, integrated, enterprise system to streamline your business, reduce costs and embrace new technologies

33 What makes us unique... We focus on seven key markets... Deep understanding and engagement in our markets Deeply integrated preconfigured solutions Proven practice Streamlined implementations Reduce time, cost and risk Market focus and commitment We sell to asset and service intensive organisations. We do not service retail, distribution or manufacturing industries.

34 What makes us unique... The power of evolution Our enterprise solution adapts and evolves to new technologies Green screen Client server Connected Intelligence Cloud Computing and Smart Mobile Devices 99% of customers have continued with us through this journey...

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

36 Robust Revenue Model Robust Revenue Model... Initial Licence - based on usage (number of users ) Matrix of licensable products & modules (approx 300 modules over 12 products) Once off fee invoiced on contract signing Implementation Services - fee for service $1 Services : $1 Initial licence Once off fee invoiced as services rendered Annual Licence Fee 22.5% of Initial Licence Re-occurring every year

37 Robust Revenue Model Initial Licence Implementation Service Initial Buy -Based on: No of Users, Products & Modules Annual Licence Annual Licence Annual Licence. Buy Addn Users - Additional Fee Initial Licence Annual Licence Annual Licence Annual Licence. Buy Addn Modules - Additional Fee Initial Licence Implementation Service Annual Licence Annual Licence. Buy Addn Products** - Additional Fee Initial Licence Implementation Service ** On average our customers have 3.5 products out of a product range of 12 products Annual Licence Annual Licence.

38 TechnologyOne Overview Diversity of revenue streams from multiple: Products (12) Vertical markets (7) Geographies (12) All states of Australia, New Zealand, South Pacific, Asia and UK Strong, very loyal blue chip customer base We provide a mission critical solution sticky customer base 60+% of our revenues generated from existing customers each year Annual licences, increase usage, new modules, new products, ongoing services etc..

39 TechnologyOne Overview One of Australia s largest software houses, specialising in the research, development and commercialisation of enterprise software invest $37m+ in R&D per year Connected Intelligence (Ci) is our current generation enterprise suite Next generation of our enterprise suite, Ci Anywhere is now released TechnologyOne Cloud is now available Diversity of revenue streams from Multiple geographies, 12 products, seven vertical markets

40 $'m Historical Performance Key metrics over last 15 years Revenue - 15% per annum compound Even through the Dot-Com and GFC Initial Licence Fees - 15% per annum compound Annual Licence Fees - 22% per annum compound Profit After Tax - 13% per annum compound Dividends - 22% per annum compound Net Assets - 15% per annum compound Profit After Tax Annual Licence Fees Net Assets Initial Licence Fees Dividends Doubling in size every 4+ years for last 15 years

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