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Ebusiness Operations document sample
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Private and
Confidential www.TechnologyOneCorp.com
December 2001 Half Year Results
By Technology One
Intelligent eBusiness Solutions
Adrian_DiMarco@TechnologyOneCorp.com
March 2002
Chief Executive Officer
Agenda
Summary of First Half
Half Year Results
Review of Operations
Outlook
Our Strategy for Growth
Summary
Technology Intelligent
One eBusiness
2
Summary of the First Half
Difficult trading conditions continue
IT expenditure is under intense scrutiny
Y2k indigestion continues
No urgency to make decisions or sign contracts
Continuing growth
Continued our aggressive R&D program
Platform for future growth
Diversify our revenue stream
Invest in geographical expansion
Platform for future growth
Diversify our revenue stream
Technology Intelligent
One eBusiness
3
Half Year Results
Half year Actual Actual
2001 Actual v 2002 Actual 2001 2002 Variance Increase
H1 H1
$ (000) $ (000) $ (000) %
Revenue (ex interest) 17,121 21,278 4,157 24%
Expenses 8,814 11,224 2,410 27%
EBITDAR 8,307 10,054 1,747 21%
R&D 3,724 4,150 426 11%
EBITDA 4,583 5,904 1,321 29%
Depreciation 322 423 101 31%
Amortisation of Goodwill 86 353 267 310%
EBIT 4,175 5,128 953 23%
Net Interest Income 647 529 -118 -18%
Profit Before Tax 4,822 5,657 835 17%
NPAT Pre Amortisation 3,327 4,229 902 27%
NPAT Reported 3,241 3,876 635 20%
EPS cents Pre Amortisation 1.05 1.33 0.28 27%
EPS cents 1.05 1.22 0.17 16%
Dps cents - standard 0.71 1.00 0.29 41%
Dps cents - special 0.00 0.00 0.00
Net Profit Before Tax Margin 28% 27%
Net Profit After Tax Margin 19% 18%
R&D as a Percentage of Revenue 22% 20%
Technology Results impacted by a significant contract that Intelligent
One was won and started, but could not be accounted eBusiness
4
Half Year Results
Business growing
Revenue (ex interest) up 24%
EBITDA up 29%
Converting growth into profits
NPAT Pre Amortisation up 27%
NPAT up 20%
NPAT Margin 18% (down from 19%)
Expense up 27% vs Revenue up 24%
Full half year of Proclaim Expenses, SA & WA Offices,
Additional space for R&D Centre, Insurance Premiums
Technology Intelligent
One eBusiness
5
Half Year Results
R&D
R&D running at 20% of revenues (down from 22%) –
still high
R&D creating platforms for future growth, but impacting
our profits short term
Target level is sub 15%
Transparency of results – all R&D fully expensed
Added 48 new staff in the half year
Technology Intelligent
One eBusiness
6
Review of Operations
Finance One continues to perform strongly
Proclaim One continues to perform strongly
Project Services flat first half
People One gathers traction
Retail One gathers traction
Student One – limited opportunities in Australia
Technology Intelligent
One eBusiness
7
New Business
Local Government International
Local Government Association of Universal Trustees (Malaysia)
Queensland
Mydin (Malaysia)
Mackay City Council
Wakefield Hospital (NZ)
Great Lakes Council
MetroWater Ltd (NZ)
Sutherland Shire Council
Lower Murray Region Water
Authority
Bendigo City Council
Technology Intelligent
One eBusiness
8
New Business
Corporate Project Services
Villa World Limited Access Queensland
University of New England NSW Police
Baptist Community Service Queensland Environment
Protection Agency (EPA)
Peter W Beck (SA)
West Australia Tafe (WA)
Department of Justice and Industrial
Relations
Tasmanian Electronic Commerce
Centre
Technology Intelligent
One eBusiness
9
Review of Operations
Continued R&D into existing products:
Sales One now available
Finance Suite - R10.1 to ship Q2 2002
Student One - R2.3 shipping now
Proclaim One - R9.0 to ship Q3 2002
eBusiness suite – across all products
Application Development Framework (ADF)
R&D into new areas:
Enterprise Project and Services Automation (early days)
Enterprise Workflow Engine (early days)
J2EE (JDF - J2EE Development Framework )
Microsoft .NET (MDF – Microsoft Development Framework)
Technology Intelligent
One eBusiness
10
Review of Operations
New generation of Internet Applications
Initial R&D is promising – still early days
Working with Microsoft and Microsoft .NET platform
Combines best of the web and client/server
• Fully web deployable
• Rich User Interface
Platform for all our products going forward
Recent roadshow completed with Microsoft nationally
Technology Intelligent
One eBusiness
11
Review of Operations
New offices continue to require investment:
Malaysia
New Zealand
South Australia
Western Australia
Investing in our new products
Pre-sale people
Sales people
Product Manager (industry specialist)
Methodologies
Functionality (on going)
Marketing collateral
Technology Intelligent
One eBusiness
12
Outlook
Actively Pursue new business:
Finance One
Proclaim One
Project Services
Consolidation and cautious approach:
Establish Retail One
Establish Sales One
Establish People One
Establish Student One
Establish eBusiness Suite
Technology Intelligent
One eBusiness
13
Outlook
Finance One – good opportunities moving forward
Proclaim One – good opportunities moving forward
Fully integrated business unit
Implementing quality processes:
– Project Management
– Software Development
– Quality Assurance
– Implementation Methodology
– Help Desk
Technology Intelligent
One eBusiness
14
Outlook
Project Services strong growth in 2003
Capitalise on JDF (Java Development Framework) and
MDF (Microsoft .Net Development Framework)
Organisational restructure – state managers
Focus on NSW, VIC for future growth
Significant opportunities in NSW and QLD
Further opportunities being developed
Technology Intelligent
One eBusiness
15
Outlook
Retail One - Significant focus, good opportunities moving forward
The only new generation fully integrated retail system from Point of
Sale through to Inventory Control, Replenishment and Financials for
mid-sized retailers
Building retail expertise, infrastructure and functionality
Appointment of a retail industry expert as Product Business manager
Sales One – not a significant focus yet
Initially sold as extension to Retail One customers
People One – not a significant focus yet
Initially sold as extension to Finance One customers
Total of 15 customers now
Student One - limited opportunities in Australia
Some good prospects – on hold until either UK or US
Technology Intelligent
One eBusiness
16
Outlook - eBusiness
Consulting & Services
New Vertical eBusiness Suite
Custom Software
Proclaim
Student
Development
People
Retail
Third Party
Sales
One
One
One
One
One
Products
Finance One
Application Development Framework
Technology Intelligent
One Common Methodologies & Systems eBusiness
17
Outlook - eBusiness
eBusiness positioning
“Out of the Box - Ready to Go”
Cost effective - already integrated to our applications
Browser based - no install required - zero admin
eBusiness extended to include a dynamic role
based workplace concept
eBusiness still not a major item on customers‟
agenda
Technology Intelligent
One eBusiness
18
Outlook - eBusiness
eBusiness Suite
eEnquiries (released)
eReporting (released)
eStudents (released)
eAcademics (released)
eProcurement (released)
eB2B (released)
eCatalogue (released)
eProclaim (released)
eCustomers (new addition – Q4 2002)
eSuppliers (new addition – Q4 2002)
eStaff (new addition – Q4 2002)
eShop (delayed 2003)
Technology Intelligent
One eBusiness
19
Outlook
Further refine our Sales Model in Australia
Further refine our Account Management Model in
Australia to ensure customer‟s remain happy
Technology Intelligent
One eBusiness
20
Outlook
Line extension to existing products
XLOne Modeller - release Q2 2002
Advanced Workflow Engine - release 2003
Technology Intelligent
One eBusiness
21
Outlook
Continuing growth
R&D target is 17% of Revenue
NPAT Margin target is 20% of Revenue
Key is to actively manage our sales pipeline
Technology Intelligent
One eBusiness
22
Our Strategy for Growth
“Technology One’s focus is the design,
development, implementation and support of
integrated and powerful enterprise wide
industry solutions using internet, eBusiness
and client/server technologies.”
Product and Services Company
Develop the products - Intellectual Property to Sell World Wide
Service Delivery - Own Distribution Channel and the Customers
Technology Intelligent
One eBusiness
23
Our Strategy for Growth
Capitalise on New
Trends Consulting and Services
Capitalise on existing
Existing products as a customers
platform for eBusiness
for our customers eBusiness Suite Additional Services
Additional Modules
Roll Out Market-
Specific Products
Expand customer base - new
New Vertical
Custom Software
market specific products.
Proclaim
Student
Development
People
Retail
Third Party
Sales
Increase One Extend Product Range
One
One
One
One
Products
Penetration
Acquisition and licensing of
In Australia:
complementary third party
• Increased promotions
products / technologies that
• Establish our new
increase our customers‟
vertical market products
satisfaction
Access New Markets
Maintain Leading Edge
Expand into new
geographic markets Finance One Invest heavily in R&D - Fully
• Malaysia, New Zealand expensed.
• Asia
• USA or UK Application Development Framework
Technology Intelligent
One Common Methodologies and Systems eBusiness
24
Our Strategy for Growth
Summary of revenue streams
Finance One - existing
Proclaim One - existing
Project Services - existing
Student One - existing (flat)
Retail One - progressively next 6 months
Line Extensions - progressively next 6 months
eBusiness Suite - coming online progressively
Sales One - coming online progressively
People One - coming online progressively
New Zealand and Malaysia - coming online
progressively
Technology Intelligent
One eBusiness
25
Our Strength in a Difficult Market
Highly integrated, consistent and proven strategy
One of the few software companies in the world that owns a
„best of breed‟ financials
Finance One as the core product with vertical market
applications such as Student One, Retail One, People One,
Sales One, Proclaim One
Multiple platforms for growth
We do not expect all initiatives to be successful
They will not have an immediate effect
Not short term focus
Technology Intelligent
One eBusiness
26
Our Strength in a Difficult Market
Large recurring revenue stream from existing
customers
Approximately 50%
Annual licences, upgrades, line extensions, additional
services
Our large government customer base
Counter cyclical
Technology Intelligent
One eBusiness
27
Our Strength in a Difficult Market
Strong financial position
TechOne is an employer of choice in Queensland
Further highlighted in a difficult market
Strong alignment between the company and
shareholders
Approx 60% of TechOne is owned by staff, managers
and the board
Technology Intelligent
One eBusiness
28
Private and
Confidential www.TechnologyOneCorp.com
December 2001 Half Year Results
By Technology One
Intelligent eBusiness Solutions
Adrian_DiMarco@TechnologyOneCorp.com
March 2002
Chief Executive Officer
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