OBJECTIVE CORPORATION LIMITED — Earnings Release 2013

Aug 27, 2013

ASX Announcement

Date: 28 August 2013

Objective Corporation Limited Final Results FY2013

Objective Corporation Limited (ASX: OCL) today announced revenue of $41.0m (FY12: $39.7m) and net profit after tax (NPAT) of $3.9 million (FY12: $4.6 million) for the year ended 30 June 2013.

Asia Pacific revenue grew by 2% to $33.5 million (FY12: $32.8 million). European revenue increased by 8% to $6.6 million (FY12: $6.1 million).

Objective’s statement of financial position remains strong. At 30 June 2013, cash and cash equivalents had increased to $18.0 million with no external borrowings.

Financial Summary

Results summary for	FY2013	FY2012	Change
year ended 30 June	$m	$m	(%)
Revenue	41.0	39.7	3
Profit before amortisation and tax	4.4	5.5	(20)
Net profit after tax	3.9	4.6	(15)
Asia Pacific revenue	33.5	32.8	2
European revenue	6.6	6.1	8
R & D (fully expensed)	9.4	9.1	3
Earningsper share	3.9 cps	4.2 cps	(7)
Final dividend	2.0 cps UF	2.0 cps FF
Special dividend	1.0 cps FF	0.5 cps UF

Objective Corporation

To deliver an equivalent (tax effected) dividend compared with FY2012, the Directors declared a final dividend of 2.0 cents per share unfranked (FY12: fully franked) and a special dividend of 1.0 cent per share fully franked (FY12: unfranked).

Mr Tony Walls, CEO, Objective Corporation said: “A solid second half performance resulted in modest full year revenue growth; and improvement in our European performance was particularly welcome. Despite a drop in full year profitability, we maintained our substantial commitment to local research and development, a reflection of our confidence in our long term future.”

Objective Corporation (ASX:OCL) is an established leader and specialist provider of content, collaboration and process management solutions for the public sector and regulated industries.

Its solutions empower effectiveness, efficiency and transparency, helping organisations deliver better customer outcomes at a lower cost.

www.objective.com

==> picture [88 x 28] intentionally omitted <==

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

ASX Announcement

Operations

Asia Pacific

Success in FY2013 was represented by new business and broad product uptake, validating the effectiveness of both our research and development (R&D) program and marketing strategy.

Objective’s continued focus on deep domain expertise and targeting specific vertical markets, the public sector and regulated industries, achieved results. We welcomed new customers in ports management (Port of Melbourne Corporation and Dampier Port Authority) and local government (Gisborne City Council, Nelson City Council, IRIS and Environment Canterbury in New Zealand). The pipeline developing in these markets is expected to bring continued success in FY2014.

Other new customers in the Asia Pacific region included Australian Pesticides and Veterinary Medicines Authority, Sydney Harbour Foreshore Authority, Quotable Value Limited, SAS Trustee Corporation and Melbourne Law School.

Achievements for our existing customers were also notable, with successful projects in many of our large customers including a 5,500 user deployment at NSW Roads and Maritime Services.

Our customers’ solutions continue to be enhanced with our new product capabilities delivering added value. These expansions contributed to Asia Pacific revenue and cement long term, strategic relationships with Objective.

Europe

An 8% increase in revenue in the United Kingdom was a most welcome contributor to our FY2013 performance.

While recent years have seen challenging economic conditions across the UK, our focus and tenacity was rewarded this year with new customers including the Bar Council and Thurrock Council; and a significant commitment to new solutions from our UK flagship customer, the Welsh Government.

Another highlight of the year was the UK launch of Objective Connect in conjunction with the UK Foreign and Commonwealth Office’s FCO Services as our UK hosting partner. Early users of this solution include market influencers, the UK Cabinet Office and Companies House.

While segment operating profit improved significantly, our European operations remain a work in progress to deliver the sustainable returns we expect.

==> picture [88 x 29] intentionally omitted <==

Page 2

ASX Announcement

Research and Development

Objective continued to make a significant commitment to local R&D. A record $9.4 million was invested this year, representing approximately 23 per cent of revenue (FY12: $9.1 million). R&D has been focussed on strengthening all of our product lines, developing new capabilities, and releasing new solutions that benefit the public sector and regulated industries.

During FY13 Objective Connect was launched with notable early success. We already have thousands of users of this solution, the bulk of which have become Objective Connect users solely as a result of the referral effect of secure business-to-business information exchange.

Outlook

Mr Walls said: “The landscape for FY14 and beyond is compelling. The Information Technology industry’s move to a Software-as-a-Service model is affecting all software industry participants, including Objective. Its impact will be felt in initially lowering software revenue growth in the short term but it should ultimately make profits more predictable in the medium term. Despite these implications, we will be prioritising revenue growth ahead of profitability during FY14, as we believe this to be in the long-term interests of all stakeholders.

“As a result of our sustained investment in R&D over many years we are in the enviable position of having a broad range of Intellectual Property assets with which to create stakeholder value. To maximise this opportunity the company’s go-to-market strategy is changing and will result in two business units, one for Enterprise Solutions and another for Leveraged Solutions.

“Our Enterprise Solutions business is largely a continuation of what we have always focussed on, however we now offer Enterprise Content Management (ECM) as-a-Service and will be delivering Workflow solutions that work with content repositories other than Objective’s own, creating future opportunities to grow our customer base.

“Our Leveraged Solutions business will focus on marketing Objective Connect, Objective Governance for Microsoft SharePoint, Objective Plan Manager, Objective PDS Streamline and Objective Committees. These solutions are predominantly cloud-based and will be marketed globally. Further, we will be building a Channel Partner program to leverage this approach.

“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.”

-ends-

==> picture [88 x 29] intentionally omitted <==

Page 3