Technology One : Half Year Accounts

For personal use only

TECHNOLOGY ONE LIMITED

ABN 84 010 487 180

APPENDIX 4D

For the half-year ended 31 March 2022 (compared to the half-year ended 31 March 2021)

Information should be read in conjunction with the most recent Annual Report and Half-Year Financial Report.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The Record date for determining entitlements to the dividend is 3 June 2022. ** Year ended 30 September 2021

Brief explanation of any of the figures reported above

Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors' report and the consolidated financial statements for the half-year ended 31 March 2022.

Earnings per share

Basic EPS

Diluted EPS

Weighted average number of ordinary shares outstanding during the period used in the calculation of the Basic EPS

Weighted average fully diluted number of shares used in the calculation of the diluted EPS

only

1 The right-of-use asset and related lease liabilities under AASB 16 Leases are included in the NTA calculations above. The reduction in Net tangible assets per share reflects an increase in software development assets and intangible assets associated with the acquisition of Scientia in September 2021.

use

Dividend Payable

The dividend is payable on 17 June 2022.

Dividend Reinvestment Plan

There is no dividend reinvestment plan in operation.

Total dividend per security (interim)

Ordinary securities

Interim dividend on all securities

Total

For personal

Earnings per Security

The Earnings per Security (EPS) increase is similar to our net profit after tax increase. Refer to the Directors' Report in the attached half-year Financial Report for additional detail.

Returns to Shareholders

The dividend for the half-year has increased by 10% on the previous corresponding period.

Results of Segments

Refer to the attached half-year Financial Report.

Trends in performance

Refer to the attached half-year Financial Report.

Any other Significant Information

N/A.

COMPLIANCE STATEMENT

This report is based on the attached half-year Financial Report which has been reviewed.

Adrian Di Marco

Executive Chair

Date: 24 May 2022

For personal use only

Technology One Limited

Directors' report

31 March 2022

Directors' report

Your directors present their report on the consolidated entity (referred to hereafter as the Group or Technology One) consisting of Technology One Limited and the entities it controlled for the half-year ended 31 March 2022.

Directors

The following persons were directors of Technology One Limited for the half-year and up to the date of this report:

Adrian Di Marco - Executive Chair

Pat O'Sullivan - Deputy Chair and Lead Independent Director

Ron McLean - Non-executive Director

John Mactaggart - Non-executive Director

Richard Anstey - Non-executive Director

Dr Jane Andrews - Non-executive Director

Sharon Doyle - Non-executive Director

Clifford Rosenberg - Non-executive Director

Peter Ball - Non-executive director

Stephen Kennedy is the Group Company Secretary. Paul Jobbins is the Company Secretary.

Principal activities

The principal activity of the Group during the half-year was the development, marketing, sales, implementation and support of fully integrated enterprise software solutions, including:

• Technology One Enterprise Asset Management
• Technology One Financials
• Technology One Human Resource & Payroll
• Technology One Enterprise Budgeting
• Technology One Supply Chain
• Technology One Property & Rating
• Technology One Student Management
• Technology One Business Intelligence
• Technology One Enterprise Content Management
• Technology One Performance Planning
• Technology One Spatial
• Technology One Enterprise Cash Receipting
• Technology One Stakeholder Management
• Technology One Business Process Management
• Technology One Timetabling and Scheduling (Syllabus Plus)

For personal use only

Technology One Limited

Directors' report

31 March 2022

Review of operations

The financial results for the half-year ended 31 March 2022 show continuing growth, with SaaS ARR up 44% and profit after tax up 18% underpinned by continuing strong demand for the Technology One global SaaS ERP solution.

Technology One's SaaS and Continuing Business now has revenue of $169.5 million for the half year, up 21%, representing 97%+ of our business, reflecting a huge shift from our legacy licence business. We are now at the completion of our SaaS transformation.

Key results were as follows:

• Profit After Tax of $33.2m, up 18%
• Profit Before Tax of $42.6m, up 14%
• SaaS Annual Recurring Revenue (ARR)1 of $225.1m, up 44%
• Revenue from our SaaS and Continuing Business of $169.5m, up 21%
• Total Revenue2 of $172.5m, up 19%
• Expenses of $129.9m, up 21%
• Cash and Cash Equivalents of $116.4m, up 16% from 31 March 2021
• Cash Flow Generation3 of $1.6m as expected, and will be strong over the full year
• Dividend of 4.2cps, up 10%
• R&D expenditure (before capitalisation) of $41.5m, up 20%, which is 24% of revenue4
• UK profit up 100%+

1 ARR represents future contracted annual recurring revenue at period end. This is a non-IFRS financial measure and is unaudited

1. Includes Other income of $0.5m
2. Cash Flow Generation is Cash flow from operating activities less capitalised development costs, capitalised commissions and lease payments. This is a non-IFRS financial measure and is unaudited.
3. Current year R&D investment includes $1.8m for Technology One Timetabling and Scheduling (Scientia product-Syllabus Plus) .

We have delivered our 13th year of record first half profit, revenue and SaaS fees.

Our Profit After Tax for the half is up 18%. And our SaaS Annual Recurring Revenue (ARR) is up 44%, as we increased the number of large-scale enterprise SaaS customers by 24% to 714. Our SaaS business continues to grow strongly.

We saw an acceleration of customers move to our global SaaS ERP solution with more than 138 large enterprise customers making the shift, the highest number to date for any comparable period. This was driven by our 'end of on-premise program', with the majority of remaining on-premise customers now also committing to transition before 2024.

Our global SaaS ERP is the future of enterprise software. It provides our enterprise customers with a mission critical solution to run their entire business on any device, anywhere at anytime. It also allows them to innovate and meet the challenges ahead with greater agility and speed, without having to worry about underlying technologies. This makes life simple for them.

These are strong half year results for Technology One and validate the strength of our SaaS strategy, which continues our strong growth trajectory in both Australia and the UK.

We have also had many strong wins and organic growth. Nineteen large scale enterprise customers partnered with us in the first half, including Shire of Mornington Peninsula and City of Manningham in Australia, Gisborne District Council and Ministry of Justice in New Zealand and Newport City Council, Derby City Council and Royal Conservatoire of Scotland in the UK, all of whom are keen to transform their operations and free up time and resources which can then be invested into their customers and community.

In late calendar 2021, Technology One acquired Scientia as a strategic addition to enhance its ERP and to drive growth in higher education both in the UK and Australia.