Private and Confidential

www.TechnologyOneCorp.com

2002 Annual General Meeting

Technology One

Intelligent eBusiness Solutions

November 2002

[email protected] Chief Executive Officer

Agenda

Financial Highlights
Research and Development
Organisational Restructure
Company's Share Price
Share Buy Back
Outlook for 2003

10^th consecutive year of record revenues
7^th consecutive year of record profits
Difficult trading conditions continue in the IT sector

2002 Financial Highlights

EBITDA of \$13.4 million, up 20 percent
Revenue of \$46.37 million, up 20 percent
R&D Expenditure (fully expensed) of \$8.14 million, representing 17% of Revenue
Net Profit After Tax of \$8.76 million, up 13 percent
Earnings Per Share of 2.76 cents, up 11 percent
Dividend Per Share of 2.00 cents, up 41 percent
Adjusted Return on Equity of 55%
Cash on Hand of \$23 million
Debt/Equity of 5% no net debt

Intelligent eBusiness

Technology One

Research and Development

Significant R&D program continued at 17% of Revenues
Almost equal to the size of our NPAT
All R&D continued to be fully expensed
We have today one of the most significant software IP portfolios ever developed in Australia

Intelligent eBusiness

᠊ᡪ

Our Portfolio of Products

Financial Management and Accounting Finance One
Retail One - Retail
Sales One - Wholesale and Distribution
People One - Human Resources and Payroll
Proclaim One - Local Government
Student Administration for Universities ■ Student One

Technology One Difference

Extensive IP portfolio

Unique Business Model

We develop
We market
We sell
We implement
We support

■ Clear differentiator between us and our competitors

Research and Development

■ R&D directed

Improving existing products
Investigating new products
Integrating to third party/partner products
Maintaining the technology edge

■ New generation of Internet Applications

Working with Microsoft
Based on Microsoft .Net platform
Re-engineer all our applications
Significant competitive advantage

■ Significant organisational restructure in progress

■ Service Delivery

"Act Locally, Think Globally"
More decentralised organisation ■■

Research and Development

"Great Software, Every Day, Every Way"
Smaller teams, focused on engineering excellence

Company's Share price

■ Disappointing situation given our continuing growth in a difficult operating environment

■ Issue: Stock Market dynamics

IT sector is now clearly out of favour
Move away from high PE stocks

■ Our approach

Run our business well
Target continued growth

Not about financial engineering to increase EPS
Opportunity to increase shareholder wealth
Factors to be considered, other than share price:
Prevailing stock market conditions
Outlook for stock market
Alternative investment opportunities
Share Buy Back is in place, ready to go, once we are convinced it is the best investment opportunity

Review of Operations

Technology One Executive Team:

Mr Ron McLean

Mr Mike Clahsen

Technology One

Private and Confidential

www.TechnologyOneCorp.com

2002 Annual General Meeting Review of Operations

Technology One Intelligent eBusiness Solutions

November 2002

Ron [email protected] Chief Operating Officer

Agenda

■ 2002 Year

Significant Achievements

New Initiatives

Regional Restructure
New Partnerships

■ Software Engineering

■ New Clients Licence Fees up 22%

Exceptional result in a very difficult and competitive market
Addition of 42 new clients
Finance One Suite continues to perform well (revenue up $40\%$ )
Largest Finance One contract signed with WA Tafe
Retail One Emergence: The Good Guys, Rabbit Photo, Godfreys
People One continues to grow 12 new sites in 2002. 23 sites in total.

Proclaim One Revenue up 7%
Six new clients
Leading supplier in local government in Australia
First New Zealand council (Wanganui District Council)

■ Student One - limited opportunities in Australia

■ Focused on securing new licence fees 2003

Continued Investment in:
Australia
New Zealand
Malaysia
Account Management
Initiative implemented last year 靈
Improved customer satisfaction based on User Survey
Additional revenues generated from User base
Model still being refined for effectiveness and focus

■ Opening of new Canberra office (now have direct representation in all States)

■ Increased sales / presales infrastructure

New Clients

Retail

The Good Guys
Godfrey's
Rabbit Photo

International

Northern Utility Resources (Malaysia)
Universal Trustee Bhd (Malaysia)
Metro Water Limited (New Zealand)
Wakefield Hospital (New Zealand)
Wanganui District Council (New Zealand)
Wanganui Gas Limited (New Zealand)
Dorchester Pacific Limited (New Zealand)

Technology One

New Clients

Local Government
City of Charles Sturt
City of Cockburn
City of Greater Bendigo
Great Lakes Council
Local Government Association of Old
Mackay City Council 蠿
Moyne Shire Council
Sutherland Shire Council
Wagga Wagga City 蠿 Council
Corporate
Baptist Community Services 雕
Budget Rent a Car Australia
Data Action 驖
Dermody Petroleum
Freemasons Hospital
The Gribbles Group
Lumley Technology 驖
Madec Australia
Peter W Beck
Piedimonte Stanley Hall
University of New England 驖
Villa World
Willmott Forests
WorkPac

New Clients

■ State / Federal Government

Australian Radiation Protection & Nuclear Safety Authority (ARPANSA)
Building Services Authority
Indigenous Land Corporation
Lower Murray Region Water Authority
Queensland Performing Arts Trust
Royal District Nursing Service SA
Tasmanian Department of Justice and Industrial Relations
Tasmanian Electronic Commerce Centre
WA Department of Training and Employment and WA TAFE

Project Services New Business

Project Services performing strongly (revenue up 10%)
Project Services, major contracts awarded include:
PBL (Strategic relationship with PBL)
Access Queensland
NSW Police (Informants), Missing Persons System and Child Protection Register
$\Box$ Stage 2 Victorian Land Titles
Archives One for the State Records of SA

Agenda

$\sqrt{2002}$ Year

Significant Achievements

New Initiatives

Regional Restructure
New Partnerships

■ Software Engineering

Benefits of Service Delivery Restructure

Act locally, think globally
Structured for continued and sustainable growth (model easier to adopt in new regions)
Direct link from Regional Managers to Executive Team
Single point of responsibility/accountability
Ability to act locally and swiftly (no bottlenecks)
No requirement for General Manager
Profit and loss responsibility

Technology One

Organisational Restructure Service Delivery

Department focus
Department P&L's

Regional focus
Regional P&L's 聯
Direct link to regions 蹦

Partnerships

■ Corporate One

Budgeting and reporting system
Developed by Chameleon Technology 驪 (specialists in budgeting systems)
Identical to Finance One look and feel
Totally integrated to Finance One 驪
Three Beta sites installed and running
Technology One to market and implement exclusively to 嬲 user base and to local government

Partnerships

WEMS

Asset Maintenance Application
Developed by EMS 驪 (specialists in Asset Maintenance Systems)
Integrated to Finance One. Further integration to Finance One and other Technology One applications will be developed
Two joint sites and more interested
Technology One to market and may get involved in implementation
Primarily marketed to local government and other asset intensive organisations