Private and Confidential 2001 Annual General Meeting

Private and Confidential

2001 Annual General Meeting

www.TechnologyOneCorp.com

Technology One Intelligent eBusiness Solutions

August 2001

Technology One

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IntelligenteBusiness

Agenda

■ 2001 Financial Results Adrian Di Marco

■ 2001 Review of Operations■ Service Delivery Ron McLean■ Software Engineering Mike Clahsen

■ 2002 Initiatives Ron McLean

■ 2002 Outlook Adrian Di Marco

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2001 Financial Results

Actual Actual2000 Actual v 2001 Actual 2000 2001 Variance Increase

$ (000) $ (000) $ (000) %

Revenue (ex interest) 28,188 38,636 10,488 37%Expenses 14,734 19,629 4,895 33%EBITDAR 13,454 19,007 5,553 41%R&D 4,689 7,840 3,151 67%EBITDA 8,765 11,167 2,402 27%Depreciation 519 749 230 44%Amortisation of Goodwill 0 343 343 100%EBIT 8,246 10,078 1,829 22%Net Interest Income 556 1,355 799 144%Profit Before Tax 8,802 11,430 2,628 30%NPAT Pre Amortisation 5,750 8,110 2,360 41%NPAT Reported 5,750 7,767 2,017 35%

EPS cents Pre Amortisation 1.90 2.56 0.66 34%EPS cents 1.90 2.49 0.59 31%Dps cents - standard 0.50 1.42 0.92 184%Dps cents - special 0.00 0.95 0.95

Return on Shareholders Equity 69% 33%Net Profit Before Tax Margin 31% 29%Net Profit After Tax Margin 20% 19%R&D as a Percentage of Revenue 16% 20%

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■ Business growing strongly■ Revenue (ex interest) up 37%■ EBITDAR up 42%

■ Converting growth into profits■ NPAT Pre Amortisation up 41%■ NPAT up 35%

■ R&D Expenditure■ R&D accelerated - up 67% (fully expensed)■ R&D running at 20% of revenues (compared to 16% last year)■ Transparency of results – all R&D fully expensed■ R&D creating platforms for future growth, but impacting our

profits short term

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■ Our platforms for future growth■ Finance One Financials■ People One Payroll and Human Resources■ Student One Student Administration■ Proclaim One Rating and Property for Local

Government■ Retail One Retail■ Sales One Wholesale/Distribution■ Project Services Custom Software Development

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■ Permanent staff numbers up 39%

■ Return on Equity 33% ■ Amongst the highest of the top 200 Australian publicly

listed companies

■ Substantial cash holding ($25.4 million)

■ Dividends■ Standard dividend up 184% (1.42 cents)■ Special dividend 0.95 cents per share

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Historical Performance

■ Since 1992, average compound growth has been:■ Revenue 38% per annum compound■ Profit 50% per annum compound■ All R&D is fully expensed as it is incurred

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Rev

enue

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Pre T

ax Profit

Revenues Pre Tax Profit

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Agenda





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2001 Achievements – 47 New Clients

http://www.qimr.edu.au/intranet/index.html

http://www.training.wa.gov.au/

http://www.aca.gov.au/index/default.htm

http://www.lgma.org.au/index.html

http://www.qimr.edu.au/intranet/index.html

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2001 Achievements

■ Continuing success with Finance One■ Brisbane Airports, Great Southern Energy, RACQ, Family

Courts, etc.

■ Early success with Retail One■ Mydin (Malaysia), Perfume Connection, Cheap as Chips■ Early days for this product

■ Early successes with People One■ Hobart City Council, Pepper Home Loans, Shaw

Contracting, Lithgow City Council, Australian Capital Equity, Great Lakes Council, Mudgee Council, Hawkesbury Council

■ Early days for this product too

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2001 Achievements

■ Continuing success for Student One■ University of Technology Sydney

■ Success in Malaysia■ Boustead, Mydin, Orbit 2000

■ Success in New Zealand■ Whitireia Community Polytechnic,

Network Tasman, Northpower

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2001 Achievements

■ Invested in new international and domestic offices■ Malaysia■ New Zealand■ South Australia■ West Australia

Petronas TowersMalaysia

AucklandNew Zealand

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Proclaim Acquisition

■ Acquired October 2000

■ Part of new focus on vertical markets

■ Six major contracts awarded in first six months■ Boroondara City Council, Hobart City Council, Tweed Shire

Council , Manningham City Council, Hawesbury City Council, and Mudgee Shire Council

■ Integration and rationalisation of business

■ Sales and Marketing■ Consulting

Contract signing

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Service Delivery Structure

■ Enhanced sales structure■ Salespeople given vertical market focus/budgets■ Supported by product specialists and telemarketing■ Continue to build our sales team and product specialists■ Expand our sales/sales support team: 16 to 26 people

NewZealandCountryManager

MalaysiaCountryManager

Industry SpecificBusinessDevelopmentManagers

PartnerManager

StateSalesManagers

Sales responsibility for key regions

Industry SpecificBusinessDevelopmentManager

Pre-salesConsultants

General Manager

SalesAustralia

Pre-salesConsultant

Industry SpecificBusinessDevelopmentManager

Pre-salesConsultant

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■ Improved consulting structure■ Regional Managers - ultimate responsibility for a region■ Project Managers - responsible for new customers - On

Time and To Budget delivery■ Account Managers – responsible for existing customers’

satisfaction and future revenue streams

GroupRegional ConsultingManager,

Nth Region

GroupRegional ConsultingManager,Ctr Region

GroupRegional ConsultingManager,

Sth Region

Regional ConsultingManager,Tasmania

Regional ConsultingManager,

New Zealand

Regional ConsultingManager,Malaysia

SupportCentre

Manager

TechnicalServicesManager

Account Managers

ProjectManagers

Account Managers

ProjectManagers

Account Managers

ProjectManagers

Account Managers

ProjectManagers

Account Managers

ProjectManagers

Account Manager

ProjectManager

Consultants Consultants

Service Delivery Structure

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Agenda





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Software Engineering Restructure

■ Restructured R&D Teams in 2001 – created the Core Products Group

■ Finance One■ Retail One■ Sales One■ People One

■ Better resource utilization

■ Tight integration

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Software Engineering Achievements

■ Continued R&D into existing products:■ Finance One Core Products – Rel 10.0 now shipping■ Student One – Rel 2.0 and Rel 2.1 shipped during 2001 ■ Proclaim One – Rel 8.0 currently shipping■ Application Development Framework (ADF)■ eBusiness Development Framework (EDF)

■ R&D into new products:■ Sales One - official launch on track late 2001■ People One - officially launched mid 2001■ eBusiness Suite - progressive release over 12 months

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Application Development Framework

■ Continuing to harness new and emerging technologies

■ Microsoft’s new “.Net” Strategy■ B2B - using industry standard XML and OBI■ B2C - payments over the web using secure gateways■ EDF – eBusiness Development Framework - replicating

richness of client/server technology with HTML (web)■ JDF – Java Development Framework

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Project Services

■ Expanded presence in NSW■ NSW Police■ Insearch (University of Technology Sydney)■ PBL (Publishing and Broadcasting Limited)

■ Continuing to leverage NSW Panel Contract ITS2036 for large software development projects

■ Continued strategy of commercialising custom applications such as Archives One

■ Public Records Office of Victoria in 2001 ■ Queensland, Victoria and Tasmania are now all using

Archives One with keen interest from the other states

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Project Services

■ Continued growth in facilities management with long-term multi-million dollar contracts secured with:

■ Queensland Dept of Natural Resources and Mines■ Queensland Environmental Protection Agency

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Agenda





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2002 Initiatives

■ We now have an extensive product suite:■ Finance One Financials■ People One Payroll and Human Resources■ Student One Student Administration■ Proclaim One Rating and Property for Local

Government■ Retail One Retail■ Sales One Wholesale/Distribution■ Project Services Custom Software Development

■ Focus to establish each product in its respective market

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2002 Initiatives

■ Finance One ■ Stronger pipeline compared to last year■ Continuing growth in Australia, New Zealand and Asia■ Further releases under development

■ Student One ■ Further opportunities (but limited) in Australia in 2001/2002■ Student One growth will come from overseas – deciding

when and how■ Further releases under development

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2002 Initiatives

■ Proclaim One■ Strong opportunities in 2001/2002■ Integration and restructuring continuing■ Need to build infrastructure to market, sell, implement and

support this product■ Further releases under development

■ Sales One and Retail One■ Early days - focus to build a strong reference base and a

sales pipeline■ Need to build infrastructure to market, sell, implement and

support this product■ Further releases under development

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2002 Initiatives

■ People One■ Will be sold as ‘add on’ to Finance One for the next 2

years■ Later will be sold as a ‘best of breed’ solution, with its own

dedicated/focused sales team

■ Intelligent eBusiness initiative■ Capitalise on move to eBusiness by Corporates and

Governments■ Leverage our large existing customer base■ Leverage our existing enterprise software■ We provide the ‘back bone’ of our customers’ systems

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Intelligent eBusiness Initiative

■ eBusiness Suite■ eEnquiries (released)■ eReporting (released)■ eStudents (released)■ eAcademics (released)■ eProcurement (Late 2001)■ eB2B (Late 2001)■ eCatalogue (Late 2001)■ eShop (Late 2001)■ eProclaim (Late 2001)

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2002 Initiatives

■ Leading edge R&D into■ Application Development Framework■ Ebusiness Development Framework

■ Project Services■ Increase our penetration in NSW

■ Focus on our new geographies■ Malaysia and New Zealand■ Explore other opportunities in Asia■ Planning to start on either the UK or the USA

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2002 Initiatives

■ Strong consulting revenue stream■ Existing customers ■ New customers ■ New products■ New geographies

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Agenda





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2002 Outlook

■ Summary of revenue streams■ Finance One - existing■ Student One - existing■ Custom Development - existing■ Proclaim One - existing■ Line Extensions - progressively next 6 months■ eBusiness Suite - progressively next 12 months■ Retail One - progressively next 12 months■ People One - progressively next 12 months■ New Zealand and Malaysia - progressively next 12 months■ Sales One - progressively next 18 months

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2002 Outlook

■ Continuing growth■ NPAT growth of 15% to 35%

■ Target Net Profit After Tax Margin■ 20% of Revenue

■ R&D expenditure ■ Target 17% of Revenue■ Continue to fully expense all R&D

■ Increase permanent staff numbers by 21% to meet the demands of this growth

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2002 Outlook

■ Further acquisitions being examined■ High hurdle rates set

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Sal

esO

ne

Roll Out Market-Specific Products

Expand customer base - new market specific products.

Access New MarketsExpand into new geographic markets

•Malaysia, New Zealand

•Asia•USA or UK

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.

Our Strategy for Long Term Growth

Capitalise on existing customers

Additional ServicesAdditional Modules

Capitalise on New Trends

Existing products as a platform for eBusiness for our customers

Increase Penetration

In Australia:•Increased promotions•Establish our new

vertical market products

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Finance One

Common Methodologies & Systems

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On

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Peo

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On

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Th

ird

Par

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Pro

clai

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Consulting & Services

Application Development Framework

New

Ver

tica

leBusiness Suite

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The Current Status

■ We have built: ■ High performing software development teams■ Strong methodologies and consistent business processes■ Good infrastructure ■ Good business model■ New Products

■ Next:■ Build a bigger and better sales organisation (started)■ Brand/Mind Share (12 to 18 months)■ Build infrastructure to market, sell, implement and support our

extended range of products■ Further overseas expansion

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Summary

■ Integrated and proven strategy■ Multiple platforms for continuing growth

■ Strong financial position■ Strong history of profitability■ Generate Cash - Cash Reserves - No Debt

■ Strong technological vision

■ Great people

■ Significant momentum

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After Word

These slides are available from the company’s web site, under the Investor Relations section :


Private and Confidential

2001 Annual General Meeting


Technology One Intelligent eBusiness Solutions

August 2001

Documents

Private and Confidential 2001 Annual General Meeting