TECHNOLOGY ONE LIMITED — AGM Information 2020

Feb 24, 2020

Chairman Presentation FY19 Annual General Meeting

Adrian Di Marco

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Commercial in confidence
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Disclosure Statement

TechnologyOne Ltd Annual General Meeting – 25 February 2020

Technology One Ltd (ASX: TNE) today conducted its Annual General Meeting at the Brisbane Convention & Exhibition Centre. These slides have been lodged with the ASX and are also available on the company’s website: www.TechnologyOneCorp.com

The information contained in this presentation is of a general nature and has been prepared by TechnologyOne in good faith. TechnologyOne makes no representation or warranty, either express or implied, in relation to the accuracy or completeness of the information. This presentation may also contain certain ‘forward looking statements’ which may include indications of, and guidance on financial position, strategies, management objectives and performance. Such forward looking statements are based on current expectations and beliefs and are not guarantees of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of TechnologyOne. TechnologyOne advises that no assurance can be provided that actual outcomes will not differ materially from those expressed in this presentation.

1

Record Net Profit Before Tax $76.4m

10 consecutive years of Record Profit

Top End of Full Year Guidance of $76.3m Achieved

Guidance provided at the H1 Results presentation…

“ We see strong continuing growth in 2019 Net Profit Before Tax of $71.6m to $76.3m”

2

Very strong result as we completed the transition to a SaaS company and a new accounting standard AASB15

FY19 PBT of $76.4m

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FY18 Comparable Profit was $50.8m[1]  Up 50%

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FY18 Reported Profit was $66.5m  Up 15%

1 Comparable method restates FY18 applying AASB15. It also assumes non-IFRS proforma capitalisation of R&D costs (50%, $26m) for the FY18 year and is unaudited. As a SaaS company, R&D costs are capitalised from FY19 onwards, which is the common practice of our SaaS peers. We measure our performance using the comparable method because it is a better reflection of the performance of our business, setting a higher bar for the prior comparable period (FY18) than the statutory reporting. It allows for a ‘like for like’ comparison of the performance of the business, assuming R&D costs (50%, $26m) were capitalised in FY18. This takes AASB15 statutory reporting comparative result for FY18 from $24.8m to $50.8m.

3

Our continuing strong growth

Our global SaaS ERP solution transforms our customers’ business, and makes life simple for them

Enabling a digital revolution Any device, Anywhere, Anytime

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SaaS is driving our strong growth
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435 enterprise customers on TechnologyOne SaaS Up 25% from 347 enterprise customers pcp Target 1000 enterprise customers by 2022

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5

Our SaaS business continues to grow strongly

SaaS ARR[1] $102m up 44%

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1ARR (Annual Recurring Revenue) was previously referred to as ACV (Annual Contract Value). ARR is a non-IFRRS financial measure
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Record Dividend up 8%

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Dividend last ten years
Up 8%
Up 8%
Up 8%
Up 46% Up 8% Up 8% 2.00
2.00 2.00 Compound
Up 52% Up 7% Down 17% Up 10% 2.00 2.00 Growth
12%
1.50
1.50
3.75 4.20 4.62 5.09 5.60 6.16 6.78 7.45 8.20 9.02 11.93
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Dividend Special Dividend
The Special Dividend is now rolled into the Final Dividend
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6

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Silicon Valley? Try Fortitude Valley.
We are an innovation driven business
R&D $60+m
21% of Revenue
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Positioned for continuing long term growth

7

Clear Strategy

• Enterprise software

• Deep functionality for the markets we serve

• TechnologyOne Global ERP SaaS solution - mass economies of scale

• Any device, Anywhere, Anytime - enabling a digital revolution

• We are an innovation driven company

• Powerful Subscription Revenue Model

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Total Annual Recurring Revenues
will increase to $500+m in FY241
an additional $300m ARR
1Total ARR in FY19 was $202m
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8

Positioned for continuing growth

Our biggest risk is Execution

Executive Rem key to our success

• Our executives have low base, driven to achieve thru STI & LTI

• Profit Before Tax up 50% on FY18 Comparable profit of $50.8m

• Profit Before Tax up 15% on FY18 Reported profit of $66.5m

• Executive Rem is up 14%

• Continuing clear alignment between the performance of the business & Rem

• Continue to improve our Rem Report, to make it simple and clear

• Future changes

• LTI testing based on CAGR , not annual testing

• Disclose LTI targets upfront, not retrospectively on vesting

9

Corporate Governance

Board renewal

Jane Andrews appointed Sharon Doyle appointed Cliff Rosenberg appointed

Appointing our 4th independent director in next few months

Corporate Governance

ESG1 Reporting has been substantially enhanced 1ESG - Environmental, Social & Governance

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Our charity partners

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11

Energy Poverty effects 1.4b people Kills 4.8m people per year

SolarBuddy

Our Commitment 500,000+ children and their families from poverty Opportunity International Australia

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Media enquiries Darren Needham-Walker Cathy Hellyer Group Director, Marketing Executive Assistant P: +61 7 3167 7235 P: +61 7 3167 7996 M: +61 456 772 881 M: +61 437 286 014 E: Darren_NeedhamWalker@technologyonecorp.com E: Cathy_Hellyer@technologyonecorp.com

About TechnologyOne

TechnologyOne (ASX: TNE) is Australia's largest enterprise software company and one of Australia's top 200 ASX-listed companies, with offices across six countries. It provides a global SaaS ERP solution that transforms business and makes life simple for customers. Its deeply integrated enterprise SaaS solution is available on Any device, Anywhere and Anytime and is incredibly easy to use. Over 1,200 leading corporations, government agencies, local councils and universities are powered by its software. For more than 32 years, it has been providing customers enterprise software that evolves and adapts to new and emerging technologies, allowing them to focus on their business and not technology.