Results for the halfyear ended 31 March 2005

1
Results for the half-year ended 31 March 2005

• 10 May 2005

2
Financial highlights

3
Financial review
4
Organic growth
Non-core
Organic
m at constant exchange rates
Acquisitions
5
Revenue sources
Organic growth
Total revenue
Total 6
62
62
Software 8
Services 6
38
38
At constant exchange rates
6
Profitability
Group operating profit margin 27 (2004 27)
Organic 80 of operating profit
Acquisitions and non-core 20 of operating profit
High-margin sales to existing customers (82 of
revenue) sustained underlying profitability
Improved sales to existing customers

• Increased investment
• Research development
• Infrastructure
• Marketing

Cost efficiencies in research and development,
administration
Operating margin -0.5pp to 28
Operating margin 3.9pp to 24
7
UK

• Organic revenue 5
• growth in both small business and mid-market
• successful upgrade programmes
• Margin 38
• high-margin sales to customer base
• infrastructure investment 2m

97m
91m
38margin
40margin
8
Mainland Europe

• Organic revenue 6
• stimulus from payroll legislation
• France (mid-market) the main growth driver
• migration to more sophisticated software and
  support
• Germany/Switzerland
• growth despite challenging market
• Acquisitions
• Simultan (January 2005)
• Symfonia (April 2005)
• Organic operating margin 23 (2004 24)

101m
90m
24margin
23margin
At constant exchange rates
9
North AmericaOrganic revenue
10
North Americacontinued

• 7 organic revenue growth
• premium support take-up
• upgrade and add-on sales
• new sales channels sales consultants
• Organic operating margin 23 (2004 22)
• Acquisitions and non-core 40m revenue and 11m
  operating profit
• ACCPAC improved margins
• FLS augments payroll services business

155m
129m
24margin
23margin
Operating profit
Revenue
At constant exchange rates
11
Rest of World

• South Africa Australia
• increasing support penetration
• upgrade programmes
• additional products for customer base, e.g.
  payroll
• South-East Asia
• profitable mid-market business
• Margins improved
• sales to existing customers
• cost efficiencies
• Developing small business divisions

28m
17m
19 margin
15 margin
At constant exchange rates
12
AcquisitionsFinancial trends
Comparable period includes pre-acquisition
results. All at constant exchange rates.
13
Cash flow and net debt
14
International Financial Reporting Standards

• IFRS reporting starts in 2006 H1
• Three principal impacts
• expense share-based payments
• capitalise and amortise different classes of
  intangible assets on acquisitions
• capitalise and amortise certain development
  expenditure
• Analyst teach-in, September 2005

15
Business review
16
Business portfolio

• Consistent revenue mix
• Growth in all segments
• Growth in all regions
• Growth in all product groups
• No competitor has this breadth

17
Customer needs Supporting business processes
18
Decentralised structure
Local products Accounting and business rules vary
by country Locally-based R D ensures rapid
response
Local support Accounting queries require local
knowledge Support feedback drives R D
Local marketing Local brands dominate volume
market Local accountants and customers provide
leads
19
Adapting our products to customer needs

20
Meeting local business needs UKAutomating
Payroll
21
Customer Migration

• Software
• Large base of businesses outgrowing original
  software
• Migration programmes generated 45,000 sales
• Continued investment in this activity
• Support
• Extra support on existing solutions 272,000
  premium contracts
• Customers moving to new solutions with new
  support
• Higher support penetration in mid-market solutions

Total accounting customers
4,500,000
860,000
gt 25 employees
660,000
Not using mid-market product
Total support contracts
1,300,000
Premium contracts
272,000
22
Market environment

• Software
• Assets local model, customer base, resellers
• Addressing market in new sales channels
• Global vendors have partial coverage
• Outgrowing local vendors

Competitor
SAP
CORPORATE
MID-MARKET
Microsoft
LOCAL VENDORS
SMALL BUSINESS
Intuit

• Support
• SMEs need IT partner
• Market-leading service
• Service demands becoming more sophisticated

MID-MARKET
SMALL BUSINESS
23
Review and Outlook
24
(No Transcript)
25
Supplementary information
26
Organic revenue growth
27
Revenue sources
28
Revenue mix
29
Accounting, Verticals and CRM
30
Support contracts
thousands
Rest of World
North America
Mainland Europe
UK
31
Return on capital employed
Post-tax operating profit / Goodwill H1 2005
figures annualised
32
UK
Excluding CRM
33
France
34
Germany / Switzerland
35
Spain
36
North AmericaSmall business
Excluding CRM
37
North AmericaMid-market
Excluding CRM
38
Rest of World
Excluding CRM