OBJECTIVE CORPORATION LIMITED — Annual Report 2012

Aug 12, 2012

ASX Announcement

Date: 13 August 2012

Objective Corporation Limited Final Results FY2012

Objective Corporation Limited (ASX:OCL) today announced a 46% increase in net profit after tax (NPAT) to $4.6 million ($3.1 million FY11) which translated to a 62% increase in earnings per share, as effected by the share buyback during the financial year.

Asia Pacific revenue grew by 3% to $32.8 million (FY11: $31.7 million). European revenue decreased by 17% to $6.1 million (FY11: $7.4 million) with UK business conditions continuing to be challenging. Overall, global revenues have remained flat at $39.7 million compared to the previous corresponding period (FY11: $40.0 million).

Objective’s statement of financial position remains strong. Net cash from operating activities has increased by 95% to $9 million compared to the previous financial year (2011: $4.6 million). At 30 June 2012, cash and cash equivalents have increased by $2.8 million (26%) to $13.5 million and there are no external borrowings.

The Directors have declared a final dividend of 2.0 cents per share fully franked and a special dividend of 0.5 cents per share unfranked.

Financial Summary

Results summary foryear ended 30 June	FY2012$m	FY2011$m	Change(%)
RevenueProfit before amortisation and taxNet profit after taxAsia Pacific revenueEuropean revenueR & D (fully expensed)Earningsper share	39.75.54.632.86.19.14.2 cps	40.03.73.131.77.49.32.6 cps	(1)46463(17)(2)62
Final dividend(fully franked in FY2012)Special dividend(unfranked)	2.0 cents0.5 cents	1.5 cents-	33n/a

Mr Tony Walls, CEO, Objective Corporation said: “Despite challenging economic conditions, we are pleased to report that our strategy of commitment to the public sector has led to an increase in revenue in the Asia Pacific region to offset tough trading conditions in Europe. Together with improved operating efficiencies we have delivered a significant increase in net profit after tax and earnings per share whilst still maintaining our substantial investment in research and development.

Objective Corporation

Objective Corporation (ASX:OCL) is an established leader and specialist provider of content, collaboration and process management solutions for the public sector. Its solutions empower public sector effectiveness, efficiency and transparency, helping governments deliver better public sector outcomes at a lower cost to the community.

www.objective.com

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Contact: Ph: +61 2 9955 2288 Fax: +61 2 9955 5011 Email: investor.relations@objective.com

ASX Announcement

Operations

Asia Pacific

2012 highlights include being awarded a strategic long-term contract to rollout Objective ECM 8 across the Australian Customs and Border Protection Service distributed environment of over 6,000 users. Similarly, our success at Wyndham City Council further demonstrated the flexibility and strength of Objective’s industry leading ECM solution for the public sector.

Other new customers in the Asia Pacific region included: South Australian Courts Administration Authority, Australia Pacific LNG, St Stephen’s School (WA), Central Otago District Council and Sinclair Knight Merz (SKM).

We also achieved a significant number of successful customer upgrades to Objective ECM 8 across Australia and New Zealand, further demonstrating that our solutions are meeting the evolving requirements of customers such as Parliament SA, Office of the Privacy Commissioner, Environment Southland, Housing New Zealand Corporation, Unity Water, Hobson’s Bay City Council, Clutha District Council, Council and Moreton Bay Regional Council.

These project outcomes are a testament to the ongoing commitment we have to our customers in delivering service excellence as well as our ability to provide strategic solutions purpose-built to meet the specific information needs of the public sector. Furthermore the scale of new contracts, such as the Australian Customs and Border Protection Service, highlight the confidence that large government organisations have in Objective products and solutions.

Europe

The prevailing weak economic conditions across the United Kingdom created a challenging environment in which to acquire new customers. This, combined with a stronger Australian dollar, has resulted in a decrease in revenue from this region. However, strong operating controls have allowed the European business to more than double segment reported profit.

We are optimistic that revenues in the year ahead will improve in the UK. This confidence is reinforced by the large percentage of our UK ECM customers upgrading to Objective ECM 8.

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ASX Announcement

Research and Development

Objective has continued to make a significant investment in research and development. This year’s investment was $9.1 million, approximately 23 per cent of revenue (FY11: $9.3 million) and concentrated on strengthening our core technologies, developing new capabilities and creating a series of new web based applications that benefit the public sector.

The announcement of Objective Connect at our user conference, Collaborate, saw us address the long-term challenge of connecting government. By delivering a solution that provides public sector organisations with the ability to share information securely with the auditability and traceability they require, while making it easy for end users, Objective Connect is making our vision of connecting government a reality.

With the release of Objective Enterprise Search for HP TRIM, Objective has developed a solution that enables HP TRIM customers to enjoy the benefits of a familiar browser-based search experience across multiple sources of information, which makes users more productive, increases adoption and demonstrates Objective’s commitment to solving the challenges faced by public sector organisations.

Our investment in enterprise content management solutions continued to allow customers to take control of the growing amounts of information in their business. The release of Objective ECM 8.1 offered customers major adoption and search benefits while improving scale and performance. During 2012 Objective Automated Email Capture (AEC) was released to solve the customer challenge of easily managing email in their Objective ECM without user intervention, helping customers increase adoption while meeting their recordkeeping requirements.

Outlook

Mr Walls said: “The outlook for financial year 2013 looks promising. We are confident of growth and are making investments in people, product and process to deliver better outcomes to our customers and improved returns to our shareholders.

The Board and management of Objective Corporation would like to thank our loyal customers, staff and shareholders, for their commitment and valuable contribution to the success of the company”.

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