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OBJECTIVE CORPORATION LIMITED AGM Information 2017
65478_rns_2017-11-28_d4f26c3a-cff3-4de9-acff-1b41aba8d138.pdf
AGM Information
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Objective
2017 AGM PRESENTATION
Objective Corporation Limited – ASX OCL
GREAT GOVERNANCE
BETTER BUSINESS
Objective
30
YEARS OF SUCCESS
1987 - 2017
CONTENTS
1 CORPORATE OVERVIEW
2 #OUTSTANDING SOFTWARE
3 FINANCIAL OVERVIEW
4 GROWTH STRATEGY
OUR PURPOSE
Bringing governance and efficiency to the organisations our community depends on
Public Sector
Local Government
Financial Services & Insurance
Healthcare
Energy & Infrastructure
GREAT GOVERNANCE
BETTER BUSINESS
4
Objective
INVESTING IN OUTSTANDING SOLUTIONS
Increasing investment in R&D
Financial Performance
leads to...
DELIVERING OUTSTANDING SOLUTIONS IS CENTRAL TO EVERYTHING WE DO
...resulting in
Outstanding products & solutions
The best outcomes for our customers
GREAT GOVERNANCE
BETTER BUSINESS
Objective
PRODUCT LAUNCHES FY2017
Continued investment in R&D has delivered releases across the portfolio...
ECM 10
Objective Insights
Objective Perform
Perform for HPE Content Manager
Keystone 5
Connect for SharePoint
Multi-workgroups
Trapeze 10
GREAT GOVERNANCE
BETTER BUSINESS
Objective
OBJECTIVE DESIGN LANGUAGE
...with a unified user experience across products
GREAT GOVERNANCE
BETTER BUSINESS
7
Objective
DELIVERING VALUE TO CUSTOMERS
Examples of customers' achievements
98%
ON TIME DELIVERY OF MINISTERIALS (increased from 0%)
80%
INDUCTION IN PAPER USAGE
INTEGRATION BETWEEN OBJECTIVE ECM AND LAND INFORMATION SYSTEMS SAVES $313,000 p.a.
AUTOMATION DOUBLED 40% → 80%
MINISTERIAL PROCESS
ACCESS TO CURRENT VERSIONS OF DOCUMENTS ON-SITE
GREAT GOVERNANCE
BETTER BUSINESS
8
Objective
INDUSTRY SOLUTIONS
- Objective: LICENSING
- Objective: MINISTERIALS
- Objective: CABINET
- Objective: OPENGOV
- Objective: CONTRACTS
- Objective: ASSESS
- Objective: PDS
GREAT GOVERNANCE
BETTER BUSINESS
Objective
CONTENTS
1 CORPORATE OVERVIEW
2 #OUTSTANDING SOFTWARE
3 FINANCIAL OVERVIEW
4 GROWTH STRATEGY
FY17 HIGHLIGHTS
Double digit revenue growth in all businesses
Reduced operating losses in Keystone and Connect
Trapeze performing in line with expectations
EBITDA increased 67% to $10.5m
>20% revenue invested in R&D
Fully expensed and included in operating cash flow
EPS of 9.0 cps – real earnings, no carve-outs
| REVENUE | $62.6M | ↑25% |
|---|---|---|
| EARNINGS PER SHARE | 9 CPS | ↑55% |
| OPERATING CASH FLOW | $9.6M | 91% OF EBITDA |
| R&D INVESTMENT | $12.9M | 21% REVENUE |
GREAT GOVERNANCE
BETTER BUSINESS
Objective
GROWING ACROSS ALL BUSINESS LINES
| Year ended (A$M) | FY17 | FY16 | % Change | |
|---|---|---|---|---|
| Objective ECM | Sales Revenue | 52.0 | 43.4 | ↑ 20% |
| Operating Profit | 13.0 | 9.6 | ↑ 35% | |
| Objective KEYSTONE | Sales Revenue | 5.8 | 4.2 | ↑ 38% |
| Operating Profit | (0.4) | (1.2) | ↑ 67% | |
| Objective CONNECT | Sales Revenue | 1.5 | 1.1 | ↑ 40% |
| Operating Profit | (2.4) | (2.6) | ↑ 8% | |
| Objective TRAPEZE | Sales Revenue | 2.9 | 1.0* | n/a |
| Operating Profit | 0.4 | 0.2* | n/a |
*Represents four months contribution for the year ended 30 June 2016
GREAT GOVERNANCE
BETTER BUSINESS
Objective
RESEARCH AND DEVELOPMENT
Long-term investment in products
Ongoing research and development expenditure is central to the Objective strategy, with total expenditure of >$100m over the past decade.
Product releases across the portfolio in FY2017
FY2017 saw release of ECM 10, Perform for HPE Content Manager, Connect for SharePoint, Keystone 5.1 and Trapeze 10.
20% of FY2017 revenue invested in R&D
All R&D has been fully expensed as incurred and cash impact recognised as operating cash flow
GREAT GOVERNANCE
BETTER BUSINESS
Objective
REVENUE & PROFIT MARGIN
Strong revenue growth
Revenue growth of 25% for FY2017, with all business units delivering significant growth.
Transition to subscription revenue model
Across our portfolio, we are maintaining a high level of revenue growth whilst transitioning to subscription based contracts.
Recurring and predictable revenue
Recurring revenue increased to $34m for FY2017 and contracted Annual Recurring Revenue at 30 June 2017 was $38m
Growing earnings per share
55% growth in EPS achieved through a combination of strong revenue growth and disciplined cost control
Revenue ($m)
EPS (cps)
GREAT GOVERNANCE
BETTER BUSINESS
Objective
CASH FLOW AND SHAREHOLDER RETURNS
Stable financial position
Cash balance at 30 June 2017 was $17m and $26m at the date of the final results announcement. We continue to have no external borrowings
Consistent returns to shareholders
Total FY2017 dividends declared of 5cps (4cps fully franked and 1cps unfranked)
On market share buyback acquired 536,263 shares between March and October 2016 at an average price of $1.72 per share
Dividend per share (cps)
GREAT GOVERNANCE
BETTER BUSINESS
Objective
CONTENTS
1 CORPORATE OVERVIEW
2 #OUTSTANDING SOFTWARE
3 FINANCIAL OVERVIEW
4 GROWTH STRATEGY
GROWTH STRATEGY
We will continue to grow by enabling improved governance and efficiency in the organisations relied upon by our community
1 Expand solutions within customers
Leverage deep customer engagement and proven ROI to cross-sell and up-sell new products and solutions.
2 Grow number of customers
Attract new customers through both organic growth and new channels with partners.
3 Geographic expansion
Use experience from APAC industry segments to target new geographies.
4 New products for existing markets
Innovate – develop our own products and solutions.
Acquire – to extend product or geographic reach.
GREAT GOVERNANCE »» BETTER BUSINESS
Objective
EXPANDING OUR ADDRESSABLE MARKET
Global partnerships with leading market vendors provides increased product development opportunities, and unmatched distribution capabilities
GREAT GOVERNANCE
BETTER BUSINESS
18
Objective
GREAT GOVERNANCE >>> BETTER BUSINESS
Objective
SAFE HARBOUR
This document is provided to recipients for information purposes only. This document has not been filed, lodged, registered or approved in any jurisdiction and recipients should keep themselves informed of, comply with and observe all applicable legal and regulatory requirements.
Neither Objective nor any of its affiliates, officers or agents makes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in this document or otherwise supplied by or on behalf of Objective to recipients ("Information") is complete or accurate or that it has been or will be audited or independently verified, or that reasonable care has been or will be taken by them in compiling, preparing or furnishing the Information. In addition, Objective nor its affiliates, officers or agents accepts any responsibility to inform any recipient of any matter arising or coming to their notice, which may affect any Information provided to a recipient.
This document contains estimates. All estimates are subject to uncertainty and unexpected events, many of which cannot be anticipated or controlled. Accordingly, actual results may differ from the estimates, and the differences may be material. Objective does not accept any responsibility for any inference, interpretation, opinion or conclusion that recipients may draw from the Information.
GREAT GOVERNANCE
BETTER BUSINESS
Objective