Interim Results Announcement of proposed C$38.5m acquisition of Systech Retail Systems Corp. Openfie

1
Interim ResultsAnnouncement of proposed C38.5m
acquisition of Systech Retail Systems Corp.
(Openfield)Management StructureProduct
Strategy

• September 2005

2
Contents

• Page
• 2 Highlights
• 3 Market Position
• 6 Management Structure
• 7 Integration Update
• 8 Financial Highlights
• Profit Loss
• Balance Sheet
• Cash Flow
• 12 Hospitality and Leisure
• 13 Product Strategy
• 15 LUCAS and UK Review
• 17 The USA
• Market Opportunity
• Systech Retail Systems Corp
• 19 Strategy recap
• 20 Outlook

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Highlights

• Financial
• 81 increase in sales to 52.5m (2004 pro forma
  28.9m)
• Underlying organic sales growth of 9
• 95 increase in adjusted operating profit to
  8.0m (2004 pro forma 4.1m)
• 50 increase in adjusted basic EPS
• Completed integration of major new businesses
  Alphameric and Retail Store Systems Inc
• Integration of XN Checkout and Anker well
  underway
• Sales and Profits ahead of expectations
• Business
• Proposed acquisition of Systech Retail Systems
  Corp for up to C38.5m provides further
  springboard into the US1.5bn US retail
  management systems market
• Management restructured to provide bandwidth for
  global business
• Software and service revenues increased to 41 of
  total sales
• Focused product strategy
• Pro forma information reflects results for the
  Group as if it had been trading in its current
  form for the full six month period ended 30 June
  2004.

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Market Position World Retail Systems Market
Hardware Vendors
Technology Vendors
Application Software and Services Provider
No 1
Page 3
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Market Position (contd)EPoS Solutions Used By
191 Mid-Tier UK Retailers
(Source Nemea) Includes Retail Technologies
International
Page 4
6
Market Position (contd)Top 5 European EPoS
Software Providers
Page 5
7
Management Structure

• Chris Moore, Executive Chairman
• Ed Dayan appointed to the main board as Chief
  Technology Officer
• Mark Sprigg, Chief Commercial Officer
• Martin Hogarty, Chief Operating Officer UK
• Steve Tilley, President USA
• Jeroen Boon, CEO Central Europe
• Chris Dhondt, CEO Western Europe
• Philip Cox joins as Group Chief Treasury Officer
  from Royal Bank of Scotland
• Rob Loosemore continues in a strategic executive
  position

Page 6
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Integration Update
Page 7
9
Financial Highlights Profit and Loss
Page 8
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Financial Highlights - Analysis of First-Half
Revenues
Other
2.1
Software
23.3
Hardware
27.9
Other
2.3
Software
21.0
Hardware
27.9
Services
Services
17.8
16.2
Maintenance
Maintenance
28.9
32.6
2004
2005
Page 9
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Financial Highlights Balance Sheet
Page 10
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Financial Highlights Cashflow
Page 11
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Review of Operations Hospitality and Leisure

• 72.2m acquisition of XN Checkout completed
• Market leader in UK hospitality sector
• Blue chip customer base Over 4,000 systems
  installed
• Integration process underway sales benefits
  already evident
• New contract wins since acquisition
• Café Nero 3 million
• National Union of Students 5 million over 3
  years
• Punch next phase of rollout to 500 outlets (5m
  over 3 years)
• Bella Italia 64 restaurants
• Herald Inns commitment for entire estate by end
  of 2005 (41 outlets)
• Ladhar Leisure roll out to 70 late night venues
  (1m)
• Strategy To expand reach into hospitality,
  gaming and retail
• Real synergies in hospitality/leisure technology
  base

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Product Strategy

• Customer requirements driven
• Value add through innovation
• Wide best of breed product portfolio
• Technology choice IBM Microsoft
• 2005 commitment to customers migration
• 2006 cross selling (LUCAS, LORD, MTS net,
  EDICT)
• 2007 LUCAS JAVA, LUCAS.NET, iBOB
• Global solutions for a global market
• New .net product launched for leisure
  market-LUCAS dimension

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Product Strategy (contd)
Merchandising Financials
Warehousing
Data mining
EPOS
Performance Management
Business Intelligence
Assortment Planning
Petroleum retailing
Visual Merchandising
Hospitality Leisure
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LUCAS UK Review

• Strong organic sales performance, particularly UK
  and Germany
• New wins for LUCAS
• UK
• Co-op Home Stores
• Bargain Crazy
• Reiss
• Mitsukoshi
• Slaters Menswear
• Europe
• Deichmann
• Espirit
• LUCAS now installed in 11,200 lanes across Europe
  and USA (gt500 lanes in UK)
• Cross selling opportunities growing fast
• Co-op Home Stores Retail Star
• Bargain Crazy Nova, WMS
• Slaters merchandising planning
• Espirit Hoffmann MTS net labour scheduling

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LUCAS UK Review (contd)

• Merchandise planning
• Strong UK, European and US performance
• Further 800,000 order from Ann Taylor
• Littlewoods/Primark
• Oldrids
• Modelo Continente
• Sales outlook
• Increased drive for retailer flexibility new
  systems
• Focus no need to chase every deal
• Integration driving real sales benefits
• Pipeline building
• Enquiries up 74
• Partner referrals strong
• Major partner bids in T1 retailers
• Major bid shortlist of 25 million margin due
  2005/06 (40 million sales revenue)
• Brand portfolio gaining real traction in customer
  base and new opportunities

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USA Market Opportunity

• Size
• License Software and Services 4bn - 5bn,
  Hardware and Infra 20bn/-
• 32 To Purchase POS next 12 months, 21 in 18
  Months (53)
• 20 To purchase Supporting Solutions next 12
  months, 20 18 Months (40)
• Opportunity
• Aging POS Solutions Software and Hardware
• Install base RSS, OFS, IBM New Targets
• SOLUTIONS Best of Breed (LUCAS, COMPASS, ISIS,
  Etc.)
• Enterprise and other Hardware (Networking,
  Handheld, Scanning, etc)
• Installation and related services
• Competition
• CRS, Triversity, Datavantage, NSB, 360 Commerce,
  JDA, Tomax
• Consolidation of solution providers in process

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USA Acquisition of Systech Retail Systems Corp
for C38.5m

• Consideration up to a maximum of C38.5m dependant
  on post completion results
• Expected completion date 1 November 2005
• Rationale behind acquisition-
• Improved penetration of US 1.2bn US Retail IT
  Services market
• Entry into Grocery Segment
• Cross selling opportunities LUCAS, COMPASS
• Economies of scale
• Earnings enhancing in first year
• About Openfield Systems
• Existing user base of over 3,000 ISIS licences.
  Customers Safeway, Food Lion, BJs Wholesale
  Club, Sedanos and Magruders
• Revenue C 20.2 million, circa 55 staff
• Geographic penetration
• Integration
• Sales Channels Software Licenses Via a Second
  Tier Business Partner
• Access to significant opportunity in Tier 3 and
  Tier 4 ISIS and LUCAS

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Strategy Recap

• Integration of acquisitions to accelerate growth
• Focused product strategy to exploit organic
  growth
• Cross fertilisation and cross selling
• Continued building of critical mass and
  geographical reach
• Target No 1 Global Retail Systems Provider

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Outlook

• Established Number one position in Europe
• Increased presence in US market place
• Benefit from economies of scale to evolve
• Established management team to provide bandwidth
  for growth plans
• Tight management controls
• Focus on profitability
• Management confident of continued delivery of
  expectations and shareholder value

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QA
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Appendix Business Overview

• Leading supplier of in-store management solutions
  to major European Retailers
• Core product set EPoS (electronic point of sale)
  and performance management solutions
• Operating in three principal markets
• High Street Retail Tier 1,2 and 3
• Petroleum Retailing and Convenience Store
• Hospitality and Leisure
• Strong profit margins and cash flow proven
  management team

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