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Private and Confidential 2001 Annual General Meeting

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Private and Confidential 2001 Annual General Meeting

  1. 2. Agenda <ul><li>2001 Financial Results Adrian Di Marco </li></ul><ul><li>2001 Review of Operations </li></ul><ul><ul><li>Service Delivery Ron McLean </li></ul></ul><ul><ul><li>Software Engineering Mike Clahsen </li></ul></ul><ul><li>2002 Initiatives Ron McLean </li></ul><ul><li>2002 Outlook Adrian Di Marco </li></ul>
  2. 3. 2001 Financial Results
  3. 4. 2001 Financial Results <ul><li>Business growing strongly </li></ul><ul><ul><li>Revenue (ex interest) up 37% </li></ul></ul><ul><ul><li>EBITDAR up 42% </li></ul></ul><ul><li>Converting growth into profits </li></ul><ul><ul><li>NPAT Pre Amortisation up 41% </li></ul></ul><ul><ul><li>NPAT up 35% </li></ul></ul><ul><li>R&D Expenditure </li></ul><ul><ul><li>R&D accelerated - up 67% (fully expensed) </li></ul></ul><ul><ul><li>R&D running at 20% of revenues (compared to 16% last year) </li></ul></ul><ul><ul><li>Transparency of results – all R&D fully expensed </li></ul></ul><ul><ul><li>R&D creating platforms for future growth, but impacting our profits short term </li></ul></ul>
  4. 5. 2001 Financial Results <ul><li>Our platforms for future growth </li></ul><ul><ul><li>Finance One Financials </li></ul></ul><ul><ul><li>People One Payroll and Human Resources </li></ul></ul><ul><ul><li>Student One Student Administration </li></ul></ul><ul><ul><li>Proclaim One Rating and Property for Local Government </li></ul></ul><ul><ul><li>Retail One Retail </li></ul></ul><ul><ul><li>Sales One Wholesale/Distribution </li></ul></ul><ul><ul><li>Project Services Custom Software Development </li></ul></ul>
  5. 6. 2001 Financial Results <ul><li>Permanent staff numbers up 39% </li></ul><ul><li>Return on Equity 33% </li></ul><ul><ul><li>Amongst the highest of the top 200 Australian publicly listed companies </li></ul></ul><ul><li>Substantial cash holding ($25.4 million) </li></ul><ul><li>Dividends </li></ul><ul><ul><li>Standard dividend up 184% (1.42 cents) </li></ul></ul><ul><ul><li>Special dividend 0.95 cents per share </li></ul></ul>
  6. 7. Historical Performance <ul><li>Since 1992, average compound growth has been: </li></ul><ul><ul><li>Revenue 38% per annum compound </li></ul></ul><ul><ul><li>Profit 50% per annum compound </li></ul></ul><ul><ul><li>All R&D is fully expensed as it is incurred </li></ul></ul>
  7. 8. Agenda <ul><li>2001 Financial Results Adrian Di Marco </li></ul><ul><li>2001 Review of Operations </li></ul><ul><ul><li>Service Delivery Ron McLean </li></ul></ul><ul><ul><li>Software Engineering Mike Clahsen </li></ul></ul><ul><li>2002 Initiatives Ron McLean </li></ul><ul><li>2002 Outlook Adrian Di Marco </li></ul>
  8. 9. 2001 Achievements – 47 New Clients          
  9. 10. 2001 Achievements <ul><li>Continuing success with Finance One </li></ul><ul><ul><li>Brisbane Airports, Great Southern Energy, RACQ, Family Courts, etc. </li></ul></ul><ul><li>Early success with Retail One </li></ul><ul><ul><li>Mydin (Malaysia), Perfume Connection, Cheap as Chips </li></ul></ul><ul><ul><li>Early days for this product </li></ul></ul><ul><li>Early successes with People One </li></ul><ul><ul><li>Hobart City Council, Pepper Home Loans, Shaw Contracting, Lithgow City Council, Australian Capital Equity, Great Lakes Council, Mudgee Council, Hawkesbury Council </li></ul></ul><ul><ul><li>Early days for this product too </li></ul></ul>
  10. 11. 2001 Achievements <ul><li>Continuing success for Student One </li></ul><ul><ul><li>University of Technology Sydney </li></ul></ul><ul><li>Success in Malaysia </li></ul><ul><ul><li>Boustead, Mydin, Orbit 2000 </li></ul></ul><ul><li>Success in New Zealand </li></ul><ul><ul><li>Whitireia Community Polytechnic, Network Tasman, Northpower </li></ul></ul>
  11. 12. 2001 Achievements <ul><li>Invested in new international and domestic offices </li></ul><ul><ul><li>Malaysia </li></ul></ul><ul><ul><li>New Zealand </li></ul></ul><ul><ul><li>South Australia </li></ul></ul><ul><ul><li>West Australia </li></ul></ul>Petronas Towers Malaysia Auckland New Zealand
  12. 13. Proclaim Acquisition <ul><li>Acquired October 2000 </li></ul><ul><li>Part of new focus on vertical markets </li></ul><ul><li>Six major contracts awarded in first six months </li></ul><ul><ul><li>Boroondara City Council, Hobart City Council, Tweed Shire Council , Manningham City Council, Hawesbury City Council, and Mudgee Shire Council </li></ul></ul><ul><li>Integration and rationalisation of business </li></ul><ul><ul><li>Sales and Marketing </li></ul></ul><ul><ul><li>Consulting </li></ul></ul>Contract signing
  13. 14. Service Delivery Structure <ul><li>Enhanced sales structure </li></ul><ul><ul><li>Salespeople given vertical market focus/budgets </li></ul></ul><ul><ul><li>Supported by product specialists and telemarketing </li></ul></ul><ul><ul><li>Continue to build our sales team and product specialists </li></ul></ul><ul><ul><li>Expand our sales/sales support team: 16 to 26 people </li></ul></ul>New Zealand Country Manager Malaysia Country Manager Industry Specific Business Development Managers Partner Manager State Sales Managers Sales responsibility for key regions Industry Specific Business Development Manager Pre-sales Consultants General Manager Sales Australia Pre-sales Consultant Industry Specific Business Development Manager Pre-sales Consultant
  14. 15. <ul><li>Improved consulting structure </li></ul><ul><ul><li>Regional Managers - ultimate responsibility for a region </li></ul></ul><ul><ul><li>Project Managers - responsible for new customers - On Time and To Budget delivery </li></ul></ul><ul><ul><li>Account Managers – responsible for existing customers’ satisfaction and future revenue streams </li></ul></ul>Service Delivery Structure Group Regional Consulting Manager, Nth Region Group Regional Consulting Manager, Ctr Region Group Regional Consulting Manager, Sth Region Regional Consulting Manager, Tasmania Regional Consulting Manager, New Zealand Regional Consulting Manager, Malaysia Support Centre Manager Technical Services Manager Account Managers Project Managers Account Managers Project Managers Account Managers Project Managers Account Managers Project Managers Account Managers Project Managers Account Manager Project Manager Consultants Consultants
  15. 16. Agenda <ul><li>2001 Financial Results Adrian Di Marco </li></ul><ul><li>2001 Review of Operations </li></ul><ul><ul><li>Service Delivery Ron McLean </li></ul></ul><ul><ul><li>Software Engineering Mike Clahsen </li></ul></ul><ul><li>2002 Initiatives Ron McLean </li></ul><ul><li>2002 Outlook Adrian Di Marco </li></ul>
  16. 17. Software Engineering Restructure <ul><li>Restructured R&D Teams in 2001 – created the Core Products Group </li></ul><ul><ul><li>Finance One </li></ul></ul><ul><ul><li>Retail One </li></ul></ul><ul><ul><li>Sales One </li></ul></ul><ul><ul><li>People One </li></ul></ul><ul><li>Better resource utilization </li></ul><ul><li>Tight integration </li></ul>
  17. 18. Software Engineering Achievements <ul><li>Continued R&D into existing products: </li></ul><ul><ul><li>Finance One Core Products – Rel 10.0 now shipping </li></ul></ul><ul><ul><li>Student One – Rel 2.0 and Rel 2.1 shipped during 2001 </li></ul></ul><ul><ul><li>Proclaim One – Rel 8.0 currently shipping </li></ul></ul><ul><ul><li>Application Development Framework (ADF) </li></ul></ul><ul><ul><li>eBusiness Development Framework (EDF) </li></ul></ul><ul><li>R&D into new products: </li></ul><ul><ul><li>Sales One - official launch on track late 2001 </li></ul></ul><ul><ul><li>People One - officially launched mid 2001 </li></ul></ul><ul><ul><li>eBusiness Suite - progressive release over 12 months </li></ul></ul>
  18. 19. Application Development Framework <ul><li>Continuing to harness new and emerging technologies </li></ul><ul><ul><li>Microsoft’s new “.Net” Strategy </li></ul></ul><ul><ul><li>B2B - using industry standard XML and OBI </li></ul></ul><ul><ul><li>B2C - payments over the web using secure gateways </li></ul></ul><ul><ul><li>EDF – eBusiness Development Framework - replicating richness of client/server technology with HTML (web) </li></ul></ul><ul><ul><li>JDF – Java Development Framework </li></ul></ul>
  19. 20. Project Services <ul><li>Expanded presence in NSW </li></ul><ul><ul><li>NSW Police </li></ul></ul><ul><ul><li>Insearch (University of Technology Sydney) </li></ul></ul><ul><ul><li>PBL (Publishing and Broadcasting Limited) </li></ul></ul><ul><li>Continuing to leverage NSW Panel Contract ITS2036 for large software development projects </li></ul><ul><li>Continued strategy of commercialising custom applications such as Archives One </li></ul><ul><ul><li>Public Records Office of Victoria in 2001 </li></ul></ul><ul><ul><li>Queensland, Victoria and Tasmania are now all using Archives One with keen interest from the other states </li></ul></ul>
  20. 21. Project Services <ul><li>Continued growth in facilities management with long-term multi-million dollar contracts secured with: </li></ul><ul><ul><li>Queensland Dept of Natural Resources and Mines </li></ul></ul><ul><ul><li>Queensland Environmental Protection Agency </li></ul></ul>
  21. 22. Agenda <ul><li>2001 Financial Results Adrian Di Marco </li></ul><ul><li>2001 Review of Operations </li></ul><ul><ul><li>Service Delivery Ron McLean </li></ul></ul><ul><ul><li>Software Engineering Mike Clahsen </li></ul></ul><ul><li>2002 Initiatives Ron McLean </li></ul><ul><li>2002 Outlook Adrian Di Marco </li></ul>
  22. 23. 2002 Initiatives <ul><li>We now have an extensive product suite: </li></ul><ul><ul><li>Finance One Financials </li></ul></ul><ul><ul><li>People One Payroll and Human Resources </li></ul></ul><ul><ul><li>Student One Student Administration </li></ul></ul><ul><ul><li>Proclaim One Rating and Property for Local Government </li></ul></ul><ul><ul><li>Retail One Retail </li></ul></ul><ul><ul><li>Sales One Wholesale/Distribution </li></ul></ul><ul><ul><li>Project Services Custom Software Development </li></ul></ul><ul><li>Focus to establish each product in its respective market </li></ul>
  23. 24. 2002 Initiatives <ul><li>Finance One </li></ul><ul><ul><li>Stronger pipeline compared to last year </li></ul></ul><ul><ul><li>Continuing growth in Australia, New Zealand and Asia </li></ul></ul><ul><ul><li>Further releases under development </li></ul></ul><ul><li>Student One </li></ul><ul><ul><li>Further opportunities (but limited) in Australia in 2001/2002 </li></ul></ul><ul><ul><li>Student One growth will come from overseas – deciding when and how </li></ul></ul><ul><ul><li>Further releases under development </li></ul></ul>
  24. 25. 2002 Initiatives <ul><li>Proclaim One </li></ul><ul><ul><li>Strong opportunities in 2001/2002 </li></ul></ul><ul><ul><li>Integration and restructuring continuing </li></ul></ul><ul><ul><li>Need to build infrastructure to market, sell, implement and support this product </li></ul></ul><ul><ul><li>Further releases under development </li></ul></ul><ul><li>Sales One and Retail One </li></ul><ul><ul><li>Early days - focus to build a strong reference base and a sales pipeline </li></ul></ul><ul><ul><li>Need to build infrastructure to market, sell, implement and support this product </li></ul></ul><ul><ul><li>Further releases under development </li></ul></ul>
  25. 26. 2002 Initiatives <ul><li>People One </li></ul><ul><ul><li>Will be sold as ‘add on’ to Finance One for the next 2 years </li></ul></ul><ul><ul><li>Later will be sold as a ‘best of breed’ solution, with its own dedicated/focused sales team </li></ul></ul><ul><li>Intelligent eBusiness initiative </li></ul><ul><ul><li>Capitalise on move to eBusiness by Corporates and Governments </li></ul></ul><ul><ul><li>Leverage our large existing customer base </li></ul></ul><ul><ul><li>Leverage our existing enterprise software </li></ul></ul><ul><ul><li>We provide the ‘back bone’ of our customers’ systems </li></ul></ul>
  26. 27. Intelligent eBusiness Initiative <ul><li>eBusiness Suite </li></ul><ul><ul><li>eEnquiries (released) </li></ul></ul><ul><ul><li>eReporting (released) </li></ul></ul><ul><ul><li>eStudents (released) </li></ul></ul><ul><ul><li>eAcademics (released) </li></ul></ul><ul><ul><li>eProcurement (Late 2001) </li></ul></ul><ul><ul><li>eB2B (Late 2001) </li></ul></ul><ul><ul><li>eCatalogue (Late 2001) </li></ul></ul><ul><ul><li>eShop (Late 2001) </li></ul></ul><ul><ul><li>eProclaim (Late 2001) </li></ul></ul>
  27. 28. 2002 Initiatives <ul><li>Leading edge R&D into </li></ul><ul><ul><li>Application Development Framework </li></ul></ul><ul><ul><li>Ebusiness Development Framework </li></ul></ul><ul><li>Project Services </li></ul><ul><ul><li>Increase our penetration in NSW </li></ul></ul><ul><li>Focus on our new geographies </li></ul><ul><ul><li>Malaysia and New Zealand </li></ul></ul><ul><ul><li>Explore other opportunities in Asia </li></ul></ul><ul><ul><li>Planning to start on either the UK or the USA </li></ul></ul>
  28. 29. 2002 Initiatives <ul><li>Strong consulting revenue stream </li></ul><ul><ul><li>Existing customers </li></ul></ul><ul><ul><li>New customers </li></ul></ul><ul><ul><li>New products </li></ul></ul><ul><ul><li>New geographies </li></ul></ul>
  29. 30. Agenda <ul><li>2001 Financial Results Adrian Di Marco </li></ul><ul><li>2001 Review of Operations </li></ul><ul><ul><li>Service Delivery Ron McLean </li></ul></ul><ul><ul><li>Software Engineering Mike Clahsen </li></ul></ul><ul><li>2002 Initiatives Ron McLean </li></ul><ul><li>2002 Outlook Adrian Di Marco </li></ul>
  30. 31. 2002 Outlook <ul><li>Summary of revenue streams </li></ul><ul><ul><li>Finance One - existing </li></ul></ul><ul><ul><li>Student One - existing </li></ul></ul><ul><ul><li>Custom Development - existing </li></ul></ul><ul><ul><li>Proclaim One - existing </li></ul></ul><ul><ul><li>Line Extensions - progressively next 6 months </li></ul></ul><ul><ul><li>eBusiness Suite - progressively next 12 months </li></ul></ul><ul><ul><li>Retail One - progressively next 1 2 months </li></ul></ul><ul><ul><li>People One - progressively next 12 months </li></ul></ul><ul><ul><li>New Zealand and Malaysia - progressively next 12 months </li></ul></ul><ul><ul><li>Sales One - progressively next 18 months </li></ul></ul>
  31. 32. 2002 Outlook <ul><li>Continuing growth </li></ul><ul><ul><li>NPAT growth of 15% to 35% </li></ul></ul><ul><li>Target Net Profit After Tax Margin </li></ul><ul><ul><li>20% of Revenue </li></ul></ul><ul><li>R&D expenditure </li></ul><ul><ul><li>Target 17% of Revenue </li></ul></ul><ul><ul><li>Continue to fully expense all R&D </li></ul></ul><ul><li>Increase permanent staff numbers by 21% to meet the demands of this growth </li></ul>
  32. 33. 2002 Outlook <ul><li>Further acquisitions being examined </li></ul><ul><ul><li>High hurdle rates set </li></ul></ul>
  33. 34. Our Strategy for Long Term Growth Sales One Roll Out Market-Specific Products Expand customer base - new market specific products. Access New Markets <ul><li>Expand into new geographic markets </li></ul><ul><ul><li>Malaysia, New Zealand </li></ul></ul><ul><ul><li>Asia </li></ul></ul><ul><ul><li>USA or UK </li></ul></ul>Extend Product Range Acquisition and licensing of complementary third party products / technologies that increase our customers’ satisfaction Maintain Leading Edge Invest heavily in R&D - Fully expensed. Capitalise on existing customers Additional Services Additional Modules Capitalise on New Trend s Existing products as a platform for eBusiness for our customers Increase Penetration <ul><li>In Australia: </li></ul><ul><ul><li>Increased promotions </li></ul></ul><ul><ul><li>Establish our new vertical market products </li></ul></ul>Custom Software Development Finance One Common Methodologies & Systems Student One Retail One People One Third Party Products Proclaim One Consulting & Services Application Development Framework New Vertical eBusiness Suite
  34. 35. The Current Status <ul><li>We have built: </li></ul><ul><ul><li>High performing software development teams </li></ul></ul><ul><ul><li>Strong methodologies and consistent business processes </li></ul></ul><ul><ul><li>Good infrastructure </li></ul></ul><ul><ul><li>Good business model </li></ul></ul><ul><ul><li>New Products </li></ul></ul><ul><li>Next: </li></ul><ul><ul><li>Build a bigger and better sales organisation (started) </li></ul></ul><ul><ul><li>Brand/Mind Share (12 to 18 months) </li></ul></ul><ul><ul><li>Build infrastructure to market, sell, implement and support our extended range of products </li></ul></ul><ul><ul><li>Further overseas expansion </li></ul></ul>
  35. 36. Summary <ul><li>Integrated and proven strategy </li></ul><ul><ul><li>Multiple platforms for continuing growth </li></ul></ul><ul><li>Strong financial position </li></ul><ul><ul><li>Strong history of profitability </li></ul></ul><ul><ul><li>Generate Cash - Cash Reserves - No Debt </li></ul></ul><ul><li>Strong technological vision </li></ul><ul><li>Great people </li></ul><ul><li>Significant momentum </li></ul>
  36. 37. After Word <ul><li>These slides are available from the company’s web site, under the Investor Relations section : </li></ul><ul><ul><li>www.TechnologyOneCorp.com </li></ul></ul>

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