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Welcome to the New Northgate Global Software & Services Leader 18 June 2007

New Entity Kick Off 18 June 2007

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Page 1: New Entity Kick Off 18 June 2007

Welcome to the New NorthgateGlobal Software & Services Leader

18 June 2007

Page 2: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 2

Agenda

• Welcome!

• Chris Stone – CEO Northgate

• The New Northgate

• Q&A

Page 3: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 3

Northgate & Arinso – The New Entity

• Northgate obtained shareholder approval for the acquisition of Jos Sluys stake in Arinso on 15/6/07

► As a result, Northgate now owns >81% of Arinso► Both companies will now operate as a single entity with global scale

& extensive expertise

• Rationale for the deal► Create a world-class business in the HR Software & Services market

for customers to improve their HR operations► Deep skills in business consulting and HR transformation► Global SAP HR business – integration & outsourcing► Global ResourceLink business for the non-SAP market► Focus on growth not cost synergies

Page 4: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 4

Northgate & Arinso – The New Entity

• Transformational event which creates a new leader in global HR systems & processes

► c. 6,000 employees in 30 countries► Combined revenues > €700m► Our systems support >14m employees► We pay >2.5m employees directly

• Clear growth strategy► We will build our business around core IP► We will continue to expand ► We will leverage our financial strength to fund both organic

expansion & further acquisitions

Page 5: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 5

Shared Values in a Performance Culture

Northgate values

• Commitment to customer value

• Culture of excellence

• Strategic & product focus

• Sense of speed

• Respect for individuals

• Aptitude for learning

• Financial performance

ARINSO values

- Customer Satisfaction

- Accountability

- Teamwork

- Respect

- People

Page 6: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 6

A Brief Introduction to Northgate – (i)

• 3 Divisions:► Northgate HR (including MoorePay & Software Services)► Northgate Public Services► Northgate Managed Services

• Financial performance 2005/06► Group revenues – c. £350m► Operating profit c. £60m

• Customers► 2,700 large/medium enterprise (LME) customers & c. 5000

small/medium enterprise (SME)► Served by c. 3,400 staff

• Listed on London Stock Exchange► FTSE 250

Page 7: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 7

A Brief Introduction to Northgate – (ii)

• Public Services Division

► Northgate Public Services is committed to the improvement of public services which place the citizen at their heart. It works with clients to deliver social, economic and environmental improvement.

► Key areas of focus► Local Government & Social Housing► Land & Property► Criminal Justice, Public Safety & Health

► It is the leading software provider to the police service and a significant supplier to the emergency services. It works with every UK police force and over half the fire and ambulance services.

► Clients also include: the Home Office, the Courts Service, local authorities, camera safety partnerships and crime and disorder reduction partnerships.

Page 8: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 8

A Brief Introduction to Northgate – (iii)

• Managed Services Division

► Northgate Managed Services is a leading specialist in Outsourcing, Managed Services & Systems Integration.

► We provide a range of IT outsourcing and management services to local authorities.

► Our portfolio of services include: desktop and mobile working, network and data security and hardware support

► Northgate is ‘building the schools of the future’.

► We recently won the C2k (formerly Classroom 2000) contract to provide an Information Communication Technology managed service to all primary schools in Northern Ireland.

► Our comprehensive portfolio of services includes: Managed learning environments to e-Teacher support, Network and data security and Systems integration.

Page 9: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 9

Northgate - Market Leading Positions (UK)

Public Services

Northgate HR (Inc Moorepay and Software

Services)

Managed Services

Local Government

Public Safety & Criminal

Justice HR Education Utilities

Applications 1 1 1Outsourcing 4 6 1 52

Source: Analyst view / Northgate Estimates

Page 10: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 10

A Brief Introduction to Arinso – (i)

• Founded 1994 – Jos Sluys• Mission

► Helping customers become better employers• Three major lines of business

► Business Consulting – HR Transformation► Global Systems Integration – SAP (some Oracle/Psft)► Global HRO – SAP

• Strong global customer base► 20% of the Fortune 500► >6m employees served through deployed systems► >600,000 employees directly managed globally

• ARINSO differentiators► Focus on HR► Expertise & experience► IP - pre-configured and multi-country euHReka platform► IP – HR Workspace► Global coverage

Page 11: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 11

A Brief Introduction to Arinso – (ii)

• ARINSO International today► Operating globally in 27 countries, on 5 continents► Over 2,500 HR focused professionals ► Outstanding financial ratios► Strong organic growth (+15% Y05; +16% Y06)

Page 12: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 12

Global Company Structure

Northgate HRIncluding Software Services&MoorePay

Public Services• CJPSH• Local Govt• Land & Property

Managed Services•Education •Utilities & Public Sector • Infrastructure Solutions

Northgate Information Solutions

Page 13: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 13

Northgate Global Management Team

CEOChris Stone

UK, Ireland & SAMalcolm Aldis

Europe(inc. Canada & Latam)

Kobe Verdonck

CIOJohn Lockett

CFOJohn Stier

USA Martin Mackay

(Acting)

Bus. DevelopmentMartin Mackay

Group HRDina Knight

Global AccountsRudy Vandenberghe

AsiaPacDarcy Lalonde

Public ServicesDave Meaden

Managed ServicesAndy Ross

Business ConsultingLuc Bossaert

Global OperationsMalcolm Aldis

Amanda OsborneExecutive Assistant

Chris Stone direct reportsand members of newExcom

Jos Sluys will becomea member of theNorthgate plc Board;he will remain committed to the business,engaged in sales &key account management

Page 14: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 14

Global HR Division - Principles

• Geographic-based P&L management by Regional Executives► UK, Ireland & South Africa► Rest of Europe (including Canada & Latin America)► United States► Asia/Pacific

• Global HR Outsourcing Operations► Management of global shared service centres► Consistent best practices delivered with best possible service at lowest

possible cost – meaning best value to our clients► Budget review once new global modus operandi established

• Global Account Management► Maximise the opportunity represented by largest global customers► Deliver value & service on a consistent basis worldwide

• Global Business Development► Mergers & Acquisitions► Marketing, Alliances & Channels► Coordination of new initiatives

Page 15: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 15

Complete HR Solution Offering

New Combined Portfolio

Global SystemsIntegration

Business Consulting

Strategic HRtransformation

Product Sales & Service

ResourceLinkOther Products

Global HRO

Customer ChoiceCustomer Value

Page 16: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 16

Northgate HR - Global Capability

• Only global HRO player of EU origin • Solid global delivery network in place• Extensive ‘blended offshore’ facilities• Global customer references• Increasing potential in the Americas and Asia-

Pacific.

• Historical focus on payroll and personnel admin• One of the only companies capable of global payroll. • Expansion beyond payroll into a full-blown HRO

player

Beyond Current MarketsComprehensive offering

• Expertise in ERP => expertise in BPO• Largest pool of SAP HCM consultants• ‘Better technology for better HRO’• 360° vision on HR transformation:

methodology, strategy, technology• Extensive portfolio of value-added assets

Beyond Payroll Full service Multi-Process Outsourcing

• Trend towards higher importance of mid-market contracts

• Trend towards more trans-Atlantic deals covering both European and American operations in the same transaction

• Offshore service centers crucial to the economics of each HRO deal

Beyond EuropeA Global Company

Beyond ERPHRO as engine for growth

Page 17: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 17

Northgate HR – New Global Market Leading Positions

Northgate HR (Inc Arinso, Moorepay and Software Services)

Applications Top 3Outsourcing Top 4

HR Systems Integration Top 3Source: Analyst view / Northgate Estimates

Page 18: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 18

Call to Action

• Communication is fundamental► Many things will change over the next 6 months – although much will remain constant ► New intranet site is available at

http://intranet.northgate-is.com/ARINSOIntegration/default.aspx► This will be the common repository for all information going forward

• Your feedback is essential► Ask questions directly of your line manager► Challenge decisions which are not in the best interests of our customers► Share your expertise & e

Experience to drive improvement► Raise issues & concerns

• Focus energy on external issues► Delivery to the customer is paramount► Customer value must be put at the forefront of everything we do► This will enable us to build the world’s best HR Systems & Services business

• Enjoy the opportunity before us all► This is a phenomenal business with global scale, which opens up huge opportunities

for us all.► Our strengths will make the new Northgate the supplier & employer of choice across

all our Divisions

Page 19: New Entity Kick Off 18 June 2007

Copyright 2007 Northgate Information Solutions. All rights reserved

Slide 19

Q&A

Page 20: New Entity Kick Off 18 June 2007

Welcome to the New NorthgateGlobal Software & Services Leader

18 June 2007