Agenda

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Agenda

• Summary of First Half
• Half Year Results
• Review of Operations
• Outlook
• Our Strategy for Growth
• Summary

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Summary of the First Half

• Difficult trading conditions continue
• IT expenditure is under intense scrutiny
• Y2k indigestion continues
• No urgency to make decisions or sign contracts
• Continuing growth
• Continued our aggressive RD program
• Platform for future growth
• Diversify our revenue stream
• Invest in geographical expansion
• Platform for future growth
• Diversify our revenue stream

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Half Year Results

• Results impacted by a significant contract that
  was won and started, but could not be accounted

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Half Year Results

• Business growing
• Revenue (ex interest) up 24
• EBITDA up 29
• Converting growth into profits
• NPAT Pre Amortisation up 27
• NPAT up 20
• NPAT Margin 18 (down from 19)
• Expense up 27 vs Revenue up 24
• Full half year of Proclaim Expenses, SA WA
  Offices, Additional space for RD Centre,
  Insurance Premiums

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Half Year Results

• RD
• RD running at 20 of revenues (down from 22)
  still high
• RD creating platforms for future growth, but
  impacting our profits short term
• Target level is sub 15
• Transparency of results all RD fully expensed
• Added 48 new staff in the half year

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Review of Operations

• Finance One continues to perform strongly
• Proclaim One continues to perform strongly
• Project Services flat first half
• People One gathers traction
• Retail One gathers traction
• Student One limited opportunities in Australia

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New Business

• Local Government
• Local Government Association of Queensland
• Mackay City Council
• Great Lakes Council
• Sutherland Shire Council
• Lower Murray Region Water Authority
• Bendigo City Council

• International
• Universal Trustees (Malaysia)
• Mydin (Malaysia)
• Wakefield Hospital (NZ)
• MetroWater Ltd (NZ)

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New Business

• Corporate
• Villa World Limited
• University of New England
• Baptist Community Service
• Peter W Beck (SA)
• West Australia Tafe (WA)
• Department of Justice and Industrial Relations
• Tasmanian Electronic Commerce Centre

• Project Services
• Access Queensland
• NSW Police
• Queensland Environment Protection Agency (EPA)

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Review of Operations

• Continued RD into existing products
• Sales One now available
• Finance Suite - R10.1 to ship Q2 2002
• Student One - R2.3 shipping now
• Proclaim One - R9.0 to ship Q3 2002
• eBusiness suite across all products
• Application Development Framework (ADF)
• RD into new areas
• Enterprise Project and Services Automation (early
  days)
• Enterprise Workflow Engine (early days)
• J2EE (JDF - J2EE Development Framework )
• Microsoft .NET (MDF Microsoft Development
  Framework)

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Review of Operations

• New generation of Internet Applications
• Initial RD is promising still early days
• Working with Microsoft and Microsoft .NET
  platform
• Combines best of the web and client/server
• Fully web deployable
• Rich User Interface
• Platform for all our products going forward
• Recent roadshow completed with Microsoft
  nationally

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Review of Operations

• New offices continue to require investment
• Malaysia
• New Zealand
• South Australia
• Western Australia
• Investing in our new products
• Pre-sale people
• Sales people
• Product Manager (industry specialist)
• Methodologies
• Functionality (on going)
• Marketing collateral

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Outlook

• Actively Pursue new business
• Finance One
• Proclaim One
• Project Services
• Consolidation and cautious approach
• Establish Retail One
• Establish Sales One
• Establish People One
• Establish Student One
• Establish eBusiness Suite

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Outlook

• Finance One good opportunities moving forward
• Proclaim One good opportunities moving forward
• Fully integrated business unit
• Implementing quality processes
• Project Management
• Software Development
• Quality Assurance
• Implementation Methodology
• Help Desk

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Outlook

• Project Services strong growth in 2003
• Capitalise on JDF (Java Development Framework)
  and MDF (Microsoft .Net Development Framework)
• Organisational restructure state managers
• Focus on NSW, VIC for future growth
• Significant opportunities in NSW and QLD
• Further opportunities being developed

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Outlook

• Retail One - Significant focus, good
  opportunities moving forward
• The only new generation fully integrated retail
  system from Point of Sale through to Inventory
  Control, Replenishment and Financials for
  mid-sized retailers
• Building retail expertise, infrastructure and
  functionality
• Appointment of a retail industry expert as
  Product Business manager
• Sales One not a significant focus yet
• Initially sold as extension to Retail One
  customers
• People One not a significant focus yet
• Initially sold as extension to Finance One
  customers
• Total of 15 customers now
• Student One - limited opportunities in Australia
• Some good prospects on hold until either UK or
  US

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Outlook - eBusiness
Consulting Services
eBusiness Suite
Proclaim One
New Vertical
Sales One
Student One
Retail One
People One
Third Party Products
Custom Software Development
Finance One
Application Development Framework
Common Methodologies Systems
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Outlook - eBusiness

• eBusiness positioning
• Out of the Box - Ready to Go
• Cost effective - already integrated to our
  applications
• Browser based - no install required - zero admin
• eBusiness extended to include a dynamic role
  based workplace concept
• eBusiness still not a major item on customers
  agenda

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Outlook - eBusiness

• eBusiness Suite
• eEnquiries (released)
• eReporting (released)
• eStudents (released)
• eAcademics (released)
• eProcurement (released)
• eB2B (released)
• eCatalogue (released)
• eProclaim (released)
• eCustomers (new addition Q4 2002)
• eSuppliers (new addition Q4 2002)
• eStaff (new addition Q4 2002)
• eShop (delayed 2003)

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Outlook

• Further refine our Sales Model in Australia
• Further refine our Account Management Model in
  Australia to ensure customers remain happy

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Outlook

• Line extension to existing products
• XLOne Modeller - release Q2 2002
• Advanced Workflow Engine - release 2003

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Outlook

• Continuing growth
• RD target is 17 of Revenue
• NPAT Margin target is 20 of Revenue
• Key is to actively manage our sales pipeline

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Our Strategy for Growth
Technology Ones focus is the design,
development, implementation and support of
integrated and powerful enterprise wide industry
solutions using internet, eBusiness and
client/server technologies.

• Product and Services Company
• Develop the products - Intellectual Property to
  Sell World Wide
• Service Delivery - Own Distribution Channel and
  the Customers

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Our Strategy for Growth
Consulting and Services
Capitalise on New Trends
Capitalise on existing customers
Existing products as a platform for eBusiness for
our customers
eBusiness Suite
Additional Services Additional Modules
Roll Out Market-Specific Products
Expand customer base - new market specific
products.
Extend Product Range
Proclaim One
New Vertical
Sales One
Increase Penetration
Student One
Retail One
People One
Third Party Products
Custom Software Development
Acquisition and licensing of complementary third
party products / technologies that increase our
customers satisfaction

• In Australia
• Increased promotions
• Establish our new vertical market products

Access New Markets
Maintain Leading Edge
Finance One

• Expand into new geographic markets
• Malaysia, New Zealand
• Asia
• USA or UK

Invest heavily in RD - Fully expensed.
Application Development Framework
Common Methodologies and Systems
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Our Strategy for Growth

• Summary of revenue streams
• Finance One - existing
• Proclaim One - existing
• Project Services - existing
• Student One - existing (flat)
• Retail One - progressively next 6 months
• Line Extensions - progressively next 6 months
• eBusiness Suite - coming online progressively
• Sales One - coming online progressively
• People One - coming online progressively
• New Zealand and Malaysia - coming online
  progressively

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Our Strength in a Difficult Market

• Highly integrated, consistent and proven strategy
• One of the few software companies in the world
  that owns a best of breed financials
• Finance One as the core product with vertical
  market applications such as Student One, Retail
  One, People One, Sales One, Proclaim One
• Multiple platforms for growth
• We do not expect all initiatives to be successful
  
• They will not have an immediate effect
• Not short term focus

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Our Strength in a Difficult Market

• Large recurring revenue stream from existing
  customers
• Approximately 50
• Annual licences, upgrades, line extensions,
  additional services
• Our large government customer base
• Counter cyclical

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Our Strength in a Difficult Market

• Strong financial position
• TechOne is an employer of choice in Queensland
• Further highlighted in a difficult market
• Strong alignment between the company and
  shareholders
• Approx 60 of TechOne is owned by staff, managers
  and the board

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