INTEGRATED RESEARCH LIMITED — AGM Information 2019

Nov 19, 2019

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Integrated Research Ltd > ABN 76 003 588 449 Level 9, 100 Pacific Highway, North Sydney NSW 2060 Australia t: +61 (2) 9966 1066 f: +61 (2) 9966 1042

20 November 2019

Manager Companies Company Announcement Office Australian Stock Exchange Level 4, Stock Exchange Centre 20 Bridge Street Sydney NSW 2000

2019 Annual General Meeting Presentation to Shareholders

Integrated Research Limited (IRI) will address shareholders today at its Annual General Meeting commencing from 10:00am at The Museum of Sydney, corner of Phillip and Bridge Streets, Sydney NSW.

A copy of the presentation to shareholders is attached to this release.

By authority of the Board

David Purdue Company Secretary Integrated Research Limited ABN 76 003 588 449

1 www.ir.com

Integrated Research Limited Annual General Meeting

20 November 2019

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Peter Adams CFO

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Key Financial Metrics

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Strong results with investments in place to drive sustainable long term performance

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Annual NPAT Performance $M
First time over $100M Revenue
25
First time over $20M NPAT
20
Licence fees up 19% to $62.8M 15
10
Revenue up 11% to $100.8 million
5
0
EBITDA up 10% to $40.2 million 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Return on Equity Basic EPS up 14% to Dividend per share
NPAT up 14% to $21.9 million 31% 12.72cps 7.25cps
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Results Summary

Consistent margins and strong return on equity

Year ending	JUNE 2019 A$000	JUNE 2018 A$000	% change
Total revenue	100,820	91,175	11%
EBITDA	40,235	36,430	10%
EBITDA margin	40%	40%
EBIT	28,900	25,848	12%
EBIT margin	29%	28%
Profit after tax	21,851	19,180	14%
Profit after tax margin	22%	21%
Basic earning per share	12.72	11.19	14%
Dividend per share (cents)	7.25	6.50
Return on equity	31%	33%

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Revenue Analysis - Geographic

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The return of Europe

Americas Revenue(US$’000)

Europe Revenue(£’000)

Asia Pacific Revenue(A$’000)

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60,000 10,000 16,000
14,000
50,000 8,000
12,000
40,000
6,000 10,000
30,000 8,000
4,000 6,000
20,000
4,000
2,000
10,000
2,000
0 0 0
2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019
APAC achieved
Americas Europe achieved a
delivered a solid 19% increase in a 14% increase in
result amidst revenues; licence revenues; growth
changes in growth acrossboth across Payments
leadership UC and Payments and Infrastructure
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Revenue Analysis - Product

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Payments boost revenues

Payments $’000

Unified Communications $’000

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20,000 60,000
15,000
40,000
10,000
20,000
5,000
0 0
2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019
AUD USD AUD USD SaaS
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Paymentsgrowth
of 92% achieved
from a global
contribution;nine
new customers
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Inconsistent execution;
opportunity to improve
with stronger renewals
in FY2020
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Infrastructure $’000

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30,000
25,000
20,000
15,000
10,000
5,000
0
2013 2014 2015 2016 2017 2018 2019
Infrastructure (AUD) Infrastructure(USD)
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Infrastructure
growth of 28%.
High margin
product line with
sticky customer
base
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Cash flow

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Improved cash receipts from customers

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Significant
improvement in
cash receipts
Reduction
in debtor
factoring
Consistent
investment in
development
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		June 19	June 18	Change
	Cash flows from operating activities	A$’000	A$’000
	Cash receipts from customers ex debtor factoring	84,443	69,072	22%
	Cash receipts from debtor factoring	5,029	13,662	(63%)
	Cash receipts from customers	89,472	82,734	8%
	Cash paid to suppliers and employees	(61,498)	(53,362)	15%
	Cash generated from operations	27,974	29,372	(5%)
	Income taxes paid	(6,737)	(7,930)	(15%)
	Net cash from operating activities	21,237	21,442	(1%)
	Net cash used in investing activities	(11,829)	(12,286)	(4%)
	Net cash used in financing activities	(12,027)	(11,137)	8%
	Net increase/(decrease) in cash and cash equivalents	(2,619)	(1,981)	32%
	Cash and cash equivalents at 1 July	11,238	14,113	(20%)
	Effects of exchange rate changes on cash	697	(894)
	Cash and cash equivalents at 30 June	9,316	11,238	(17%)

FY2020 Trading update

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• FY20 year to date revenues comparable with prior corresponding period

• Larger contracts typically close toward end of each reporting period

• Pleasingly four large contracts over $1 million have closed in the year to date

• 11 new logos added during the period

• Investing for long term growth: October 2019 staff numbers of 274 vs prior year equivalent of 259 (additions predominantly in development)

• Overall pipeline (including Unified Communications renewals) supports FY20 revenue and profit growth over the prior year

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John Ruthven CEO & Managing Director

… awesome team

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Peter Adams Chief Financial Officer

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Greg Clancy Chief Product Officer

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Vanessa Walker Chief People & Culture Officer

Kevin Ryder Chief Marketing & Customer Officer

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Matt Glasner Chief Commercial Officer

Michael Tomkins Chief Technology Officer

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… amazing customers

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Telecom/IT Financial Other Healthcare
Not-for-Profit
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… compelling value proposition

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just make it
simple complex
works! work!
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accelerating consumer demand for simplicity increases complexity of service delivery

… market dynamics

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13.8% 37% 372B
card transaction enterprises card
growth with hybrid UC transactions
US$46B 145B 62%
global UC non-card 2+ UC
Market by 2023 transactions vendors
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Source: UC Gartner 2019 | Wainhouse UC Research | World Payments Report, 2019,Capgemini

How we grow … multi-vector strategy

grow products balanced roadmap

new | new next generation platform grow customers new logo acquisition

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maintain the base
89% recurring
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… maintain the base

capacity underlying growth

maintain the base 89% recurring

time >3 year avg contract term

renewals 95% maintenance renewals

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… customer growth

geographic expansion Europe & Latin America underweight

managed service providers <25% of mix

go-to-market new business teams grow customers new logo acquistion

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… product growth

grow product balanced roadmap

development spend 19% of revenue

hybrid next generation platform & Prognosis extension

new products thresholds, analytics

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… new | new

hybrid customer cloud journey

new segments mid-market

new | new next generation platform

new markets real-time, volume & complexity, domain expertise

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… three market forces

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strong solid high
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Paul Brandling Chairman Resolutions

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Refreshments Heritage Room Intercontinental Hotel 117 Macquarie St, Sydney