Technology One Limited (TNE) Earnings Call Transcript

Good morning, and welcome to Technology One. I am Stephen Kennedy, the Group Company Secretary. The presentation slides you're about to view today have been released to the market this morning by the ASX announcements platform and a recording of this will be available on our website tomorrow. So without further ado, I'd like to introduce our MD and CEO, Ed Chung.

Thanks so much, folks. Good morning. Welcome to our first-ever TechOne Investor Day, Investor Day 2024. There's about -- looks like 70 or 80 guests in the room here today in our TechOne headquarters, and you would have done a tool around the R&D labs just before you came. It's so exciting for us. You'll see later that we're going to show off our innovative software, our growth opportunities and our ambitious strategies and most importantly, how we make life simple for our community, and we're lucky enough to have [ one ] of our guests here today. I'd like to introduce you firstly to some of our senior leadership team. They're on the right -- to my right over here. Many of you will know Cale Bennett, our CFO; and Stuart MacDonald, our COO; I'd also like to introduce some of our exact team that could be here today. We've got Chandan Potukuchi, where are you Chandan, our CTO; and 3 of our EVPs, I can see David Cote, Brock Douglas and Leo Hanna. So welcome, everyone, and ask them as many questions as you like in the breaks. A little bit of housekeeping. You can see our agenda up here on the screen. Firstly, I'm going to take some time to go through what makes TechOne unique. What makes us special and how we grow, and I'm going to get fairly deep into our platforms for growth that helps us to deliver continuing strong growth and doubling the size every 5 years. Then we're going to have a customer come up. Thank you, Michael, for coming and describe the problem that we're solving for our customers. Stuart will take you through our TAM product by product and by vertical, and the opportunities that, that provides for us. You're going to see an awesome day in the life of demonstration of our software from our presales team. And then we're going to wrap it all up with SaaS+ how we're changing the ERP world with SaaS+ get deep into the financials, so you can understand the profile of SaaS+ and then wrap up with questions and answers at the end of the day. So let's jump into the first section, which is making life simple for our community and what makes TechOne very special and very unique and therefore, very successful. When we look back at the last 37 years, we're now 37 years old, we've been successful on pretty much every measure imaginable. And I look around the room, and it's actually 1 or 2 of our investors here in the room have told us that we're probably 1 of the best performing stocks on the ASX of all time based on our total shareholder return over the last 25 years. Now to us, that's just quite flattering and humbling. But importantly, it got us thinking about what makes us special what makes us unique in our recent achievements. Because when we understand that uniqueness and continue it, it puts us in a very strong position to continue to double in size every 5 years and continue that track record of innovating and delivering growth for our shareholders. Now the strategies that we're going to show you, they've been the same for 37 years. They haven't changed. It was right back to the foundations with our founder that Adrian put in place. And when we think about it over the last 24, maybe 36 months, we've refreshed what we call our purpose, our mission, our values, our core beliefs, our compelling customer experience, and we haven't changed one of them. What we've done is we've refreshed them to codify them so that we can inspire our team members and so that we can pass down these stories about what makes TechOne special through the generations, just like tribal elders pass it down through the generations. And our vision is here. Our vision is simple. It's making life simple for our community. And over the years, it's been our vision and our ambitious goals and relentless focus that has been key to our success. And we always start with a vision rather than bottom-up detailed plans. And after the vision, we've got the most innovative staff, you would have seen them coding away and creating the products and solutions we're proud of. That staff are innovative. They've got grit, they've got perseverance relentless focus and relentless discipline because once we have that vision, all those really ambitious goals, and we're going to show you some of those, they are the ones that figure out the details. They are the ones that create the plans, and they are the ones that make the impossible possible. And in doing so, we solve complex business problems for our customers. And so our purpose, our passion is to solve the complex and you'll hear me say this all the time to our teams and to anyone who want to listen is that we don't do easy. ERP, by its nature, is very, very hard. Otherwise, there'll be heaps of companies in the world doing it. And then our ERP is very special. We go to a local government and you look at Property & Rating. It's mission-critical software. It runs a local government. It calculates and charges the rates that we all get charged every quarter. You register a PIP in the software. If you're starting a cafe, you apply for your health certificate through our software. And if you're going to build a pool or a house, your development application is applied for and approved in our software. So it's very mission-critical. And in Australia and New Zealand, there's 2, maybe only 3 companies of size and scale that provides that deep functionality for local governments. And then when you look at Student Management, it's also mission-critical. It runs a uni or runs [ TAFE ], you apply in our software, you sell your courses, pay your fees. If you like me, you have sanctioned a few times, the letters come from our software and eventually, you graduate and you get your degree or a certificate from our software. There's only 2 to 3 players globally that create that software. It's very difficult. And of course, payroll is hard. All of our 16 products, it's hard to deliver on their own, let alone in a massively broad ERP. So we tackle the complex, right? And we -- along the way, we make mistakes. We call it scar tissue, but we evolve very, very quickly. And the result is software that our customers can't live without. Their mission-critical products powering local governments, powering uni's and tapes, powering governments, massive infrastructure providers, hospitals, health care. As you would have seen, a lot of the logos on the wall on Level 10, if you did the tour. It's quite amazing the logos that TechOne has and the community is our customers. We live, work and play in the community in which we operate. We're doing something very meaningful, very meaningful for counsels, for our families, for you because we all live in the councils that we work in, for our kids that are going to universities or TAFE and for our parents in hospitals and aged care providers. That's the software we provide. It's mission-critical. It runs each 1 of those organizations and we say to our team, we could actually sit in this room once a quarter and where have you started around the world, we fly you all in here and you get in [ doctorate ] like a University for a week. And we say, "You don't work for a betting company that's around -- just around the corner here. You don't work for a social media company that's just up the road, you don't work for 1 of the hyperscalers that has an R&D center down the road". Our products, our solutions are doing something very special for the community in which you work, live and play in. And when you look inside of our business, everything we're doing, absolutely everything is about scaling our business for our customers, for our staff and, of course, for our bottom line. And it's to ensure the success we've had in our first 37 years, continues for the next 37 years and beyond. And as I said a moment ago, we've codified that. We've codified it in what we call our core beliefs, our vision, our mission, our purpose, that's what makes us special. And our job is to pass that down like tribal elders do, pass it down through the generation. So that success continues for the next 37 years and beyond. Now the final piece, the final piece is here, the core beliefs. We just refreshed those and they're very important for TechOne. They're the ones that make us absolutely special, absolutely unique and then nonnegotiable. So if you join TechOne, you learn that these are nonnegotiable. And these guide all of our strategies, all of our initiatives, all of our investments, and it's what separates us from our competitors. As I said, it's what makes us unique and very successful. And it results in what we call the Blue Ocean strategy. It's vast, it's deep, it's powerful in terms of growth as opposed to the cutthroat competition in the bloody Red Ocean strategy. So we're going to take you through this now. And the first core belief is ERP. So we provide a totally integrated global SaaS ERP, it's very broad. It's extremely broad. And each 1 of these products has a lot of modules, 20 to 30. And when you think back to 2008, just use that as a benchmark, we had 11 products. But through our R&D investments over time, in 2016, we've got 16 products because each product has 20 to 30 modules, there's over 500 modules now, and we continue to invest in R&D for more modules and more functionalities to make life simple for our customers. And we're so proud of all of the products. Each 1 of those 16 products compete against what we call best-of-breed competitors in a stand-alone shootout, and we win. And importantly, they're fully integrated into our ERP. It's so seamless. You don't even know what product we're using. And I called out this 1 here spatial, I could have called out any, but this special product we acquired in 2015. And since then, we've reengineered the whole product like we always do, and it's part of the single global code line. And it was necessary for a couple of reasons. It was the IP, the product that made us deeper into local and higher education in all our vertical markets. But it was also needed for our SaaS offering. So we found this little company based out of Melbourne, and we applied it in 2016 -- '15 and it's very, very special. It's so good. You're going to see it in the demo. We compete day in, day out with Esri, day in, day out, it's better than Esri, hands down. It's fully embedded into the whole ERP fully embedded. So you can be an enterprise asset management and standing on the road outside and look down and see under the roads and see the pipes and see the soils. That's how embedded it is. It's so fantastic. You can be in our building and trying to locate any asset, and it's 3D. You can not only find the building, it will find every single floor, and you can keep drilling. That's called 3D mapping. It's quite groundbreaking, and it's in our ERP, you're going to see that today. You're going to be in Property & Rating. And this is how embedded it is. You're in a map in Property & Rating, and you can click and drag a whole area and then search for property attribute who has a pool, who has whatever, and it'll just pop out the answer for you straight away. It's so hard to explain how integrated and how special and magic, the whole ERP is, and I'm just picking on 1 great product right now spatial. But you're going to see a demo to show you all of that. The next core belief is 1 experience for our customers. So 1 global code line, we have a deep understanding for the markets we serve. It's mission-critical, it's streamlined. You're going to see it. The demo is going to show you. You won't know what product you're in, what module you're in, how connected it is -- and you're going to see probably, the CEO of the Council, be in a dashboard and she can drill and drill and drill and drill and drill and go write down the transactions. That's quite magic. You can't see that in best-of-breed. You won't see that anywhere else. The third is market focus and commitment. We say this a lot. We're not all things to all people. We've got deep knowledge of our chosen sectors and we've got local presence and local access. Where members of the community, we're rate payers, we're students. It's why we have such a deep connection. I'm going to tell you 2 stories. A few years back, I can't remember how many years, maybe 4 or 5 years, Workday came. Workday came with Student Management and a lot of [ glimpse ] out of marketing budget probably bigger than our entire R&D whole budget. And we say this now. We're a little bit scared at that time. But -- it was all marketing, right? So they came -- they found a couple of universities and said, we're going to work with them to create a Student Management product. And in fact, a little bit on scrip, Stuart and I were invited down to 1 of the big banks and the only reason we went to work go to meet 1 of the big banks because their global Head of SaaS, she was an executive of Workday. So we wanted to meet her and she said to us, you know what Ed Workday is pulled out of Student Management globally. Yes, we've got 10 customers in the U.S., and we'll see them through, but it's hard. So not in the U.K., not in Australia, none in the U.S. So that's unlike us, we have deep focus and commitment to the verticals we serve. The second story I want to tell you is every 4 or 5 years, Oracle and 1 of the big 4, they say we're going to take over local government in Australia, have 5 years ago. So KPMG and Oracle in Victoria when and bought the business, crazy terms, fixed price, liquidated damages, consequential loss, all that stuff. And we said, you know what, we're not going to do that. That's not what we do. It's not our sweet spot. And so they went and tried and have failed. Guess what? All of them -- all [ by ] one, I think. And that last one, you'll come back to TechOne and take the whole suite. Because it takes blood, sweat and tears, gritting determination, innovation to make a product last for the verticals we serve, and they don't have it. Now we've got the deepest functionality for the verticals that we focus on. It's mission-critical software. As I said, it powers a local government, a uni, a TAFE, a hospital, infrastructure providers. Stuart is going to come up later with the team, they're going to show you the breadth and the depth. And they're going to show you a day in the life for a presentation. And the reason we use those terms day in the life, you're going to see it all in like 30 minutes. But if we want a tender, we'd be demonstrating for 5 or preferred in a tender demonstrating for 5 days, the depth of our software. And we say this also, and when we grow, we narrow our focus. For example, in the U.K., we only focus on higher education and local government. These are new slides you've never seen these before. So now we compete with traditional ERP or enterprise resource planning organizations. You can see this here, right? Now they provide software. This is a definition of theirs, that runs your business supporting automation, processes in finance, HR, manufacturing, supply chain and procurement. For us, it's about this much of what we do. It's very narrow. It's a limited definition. It doesn't include all the deep market functionality that we have specifically or, for example, in local government and higher education. We're going to show you that later. Then we compete against best-of-breeds. You might know some of these names here. Now best-of-breeds software applications, as the name says, focused on doing 1 thing very deeply. Take payroll, for example and they just do that really deeply. The argument is that best-of-breed is that you get specialists or advanced capabilities just for that function. And then finally, we compete against these vertical focus players. But we're different, we are ERP and way more, we compete and win against the best-of-breed hands down, day in, day out. In short, we don't follow the standard path, and we create the Blue Ocean by having an ERP for defined vertical markets, for example, like government, higher education, and it's very broad and extremely deep. No one comes close to what we provide for the markets we serve. Now this is a diagram of the market positioning of each 1 of those competitors. And what this shows here at the bottom, so he's got small organizations in local government to large organizations. And for us, the mission criticality of our software. So if you can see over here, local government, higher education, we have very, very mission-critical products. No one else has them. And if I go through each 1 of those in local government, we focus on the mid to large end. Same for higher education, government, the whole spectrum, health and community services to bid to large. Asse intensive industries, again, mid to large and financial services and corporates, it's the least of our specific mission-critical software, probably the bottom 2/3. So hopefully, that helps in the understanding positioning where we compete. Okay. Our next core belief is evolution, not revolution. We believe -- it's where the big bang achieves anything. Rather it's incremental and constant improvement that changes the world. Our enterprise solution, it evolves and it adapts as we embrace new technologies new techniques, new concepts, and we share that with our customers and we never leave our customers behind when it comes to technology shifts. Now when you think about SaaS+, and we're going to get into that deeply later, that was a concept invented 5 years ago. It's a next logical evolution for us, but it was a skunkworks that evolved to where it is today, but I won't get into that because the team will take you through that shortly. And then we've got the Power of One. So it's quite simple for us. We build market, sell, implement, support and run. We do the whole chain SaaS+, which alone can only happen because of Power of One, but we own it all. Now for those that have been with us for a long time, that's how we were born all that way 37 years ago. For those that are new to TechOne, and this is what I say a week, Telstra wanted a, they wanted to own the copper under the things and the mobile. Horizon wanted it, they started with trains and they wanted to go port stocking and logistics. The banks wanted it, right? They wanted to do banking, wealth, super and insurance because you get to own the customer end to end. Everyone wants it. We're fortunate because we were born that way. Now I want to take you through what makes it Power One special for us. The first is an IP engine. We built the software, 16 products, 500 modules and if we bid it and market it and we lose, goes back into the software, and we make sure we don't lose the next one. Once we won a customer, we've sold it, and we're in implementation and we're implementing the software and the consultant says, "Man, this is hard to implement or I could implement it a different way and drive the days down, goes back into the software and the next customer gets the benefit. Then when that customer is live, they were in support. That support gets tickets for either bugs or education we go, that's not enough. It goes back into the software and the next customer gets the benefit of that. And finally, we run it on the SaaS platform. If it's nonperforming, has security issues, whatever it goes back into the software, and it creates this fabulous IP engine. That's benefit #1. The second is there's no 1 between us and the customer. So if you go the traditional way and buy one of those big ERPs and use a big 4, the big 4 rounds of relationship, and when they fall out of love with SAP and inter love with Workday, I guess what happens, they replace that at the customer side. So we own the customer relationship end-to-end. Also ERP is really complex, right? There will always be issues in a traditional way, the vendor points the finger at the implementation partner and the implementation partner pointed at the vendor and the customer is stuck. So we get 100% accountability. In the end, all of this wraps together and that's 1 of the reasons we have 99-plus percent customer retention over the last 37 years. So Power one is very powerful. Tech is the answer. That's the next core belief. It's why we think it means we can solve the complex. It changes the way we work with our customers, tech evolves rapidly, and there's always new answers, new possibilities. It's a very deepen in us, this core belief. And we're an innovation-driven company. You'll know that we invest 20-plus percent of every dollar of revenue each year in R&D. That's been over $1 billion since we started to create this 16 products and 500 modules that you have in front of you. Now for the investment community, we manage that investment within our total profit growth within our total margin -- and the success we're having now comes from the R&D we did 5 years ago. It's long term. And although we're an ASX 100 company now at heart, we still start up, we're still entrepreneurial we think big, we take big risks. We make mistakes. The key is the managing these risks and starts all the way from the top and goes all the way down through our organization. And tech is the answer, you think of some tech shifts. 10 years ago, Cloud was all we could think about the Cloud hype cycle, it was a gold rush. Many people rode the fake wave. You probably know none of them, and they got found out. Now in tech today, AI is the gold rush, isn't it? So we look at it the same way. It's a gold rush. It's at the top of the hype cycle. It's a solution looking for a problem. We're going to carefully invest and most importantly, find practical solutions for our customers and we've been doing it for a while. AI is using tech to automate business processes. And so I just want to share a few of those with you now. So we've got DXP expenses and purchase cards. You simply take a picture of an invoice and processes all the way through and it's in your bank account and [ is an ] expense claim at AI. We have AI ECM, which can go over [ sways ]. I'm talking petabytes of data, massive amounts of data in organization, do a search pops up the answer. That's AI. You're going to see LG DXP. It uses like general natural language as a write pattern searches, it pops up the answer for you. That's using AI and you would have heard and you're going to see a little bit as well today about AI on garbage trucks or cameras on garbage trucks, just scanning the road, AI, looking at the video and finding the defect and automatically processing that all the way through TechOne on to the defect fix. So we've been in for a while, this goes on and on. Now we talk about our fourth generation quite a lot. It's called CiA, available anywhere, any device, anytime. We've successfully reengineered our whole ERP 4x. That's 4 generations over the last 36 years, think millions of lines of code to take advantage of the latest technology and latest concepts. And 1 of the simple ones for me is the third generation in Property & Rating always process yours and my rates and send me my quarterly rates bill. You might have done that just say, over a 1- or 2-day period in a very large Council, but with CiA, that now does it in minutes and hours. So it's the same process, but using new tech to speed that up and automate business processes for our customers. Now we also call this fourth generation, the SaaS generation and our SaaS customers get 2 releases every year, like at the latest tech, they're always on the latest tech and they report to us that they save 30-plus percent by moving to [ our ] SaaS. You're going to see that up there in a minute. And finally, we're the most trusted SaaS provider, we have the highest level of security certification of any ERP in the world. We're the first and only global SaaS ERP to get IRAP protected certification for the whole ERP. There's others, but we're talking the whole ERP, no carve-outs. And we'll continue to invest millions of dollars to stay at the leading edge of cybersecurity and certification amongst all of our competitors. We spent hundreds of millions of dollars looking at security, and it's not feasible for individual organizations to spend anywhere near that to keep them safe and secure. So a SaaS base strategy is a way to go. You would have seen this slide probably a couple of times. We're 1 of only a few companies globally that has successfully made the transition from being an on-premise company to a SaaS company. Long-term strategy started probably in 2010, 2012 about that time. And during that time, we've totally reengineered our whole company. Our products, commission structures, plans, the way we do everything, every part of our organization. And we've done it without skipping a beat for our customers, and we've done it without skipping a beat for revenue and profit growth and guess what, we're going to do it again with SaaS+, but Cale will talk to us about the detailed financials later. I'm just going to spend a couple of minutes talking about SaaS+. But before I do, I'm just going to explain the SaaS journey. So if you look at what Salesforce did, they change the world, right? They changed the world from on-premise to SaaS today. And it starts with license. So organizations back in the on-premise world were coming to us saying, we need a license or an app or software to streamline our business, could be financials, could be HRP, 1 of our 16 products. And this is what they did. So I don't know those that are old enough, remember the yellow pages, that's how thick tender documents were back in the day. They really were that thick. Okay. So you want to buy a license, but then they say, please pick the service, please pick the service to the license we're buying. And then they say, match that against the CPUs is what we used to have to fill out back in the day. How much memory do I need for the software I'm using all depends on the size and scale of the business that you're selling to, right? What's the operating system, and you'd always keep the operating system up to date and then database is, database is really expensive, right, Oracle, SQL and then load balances, all that, just buy the license for what you're running -- that's the world. That's the yellow pages well that I'm referring to. And then organization like Salesforce, they didn't embed SaaS, but they really turbocharge it in my mind. They came in and said, "You don't need any of that. They came in and said for 1 single fee, we get rid of all that complexity and we'll take care of it for you". Now they're running a problem. They're all things to all people, right? They don't have specific IP and what they have is a business model where they've got the SaaS, but they're tied to the implementers, the SIs, the Big 4. And that takes them 1 step away from the customer, and it lines the pockets of the integrators. And that money that goes to the integrators should be going to -- if you're a Council parks and roads, if you're in a hospital nurses, if you're in a university educators. You don't have to spend eye-watering amounts of money rolling out SaaS. Okay. So -- this is where we go now. So if you're a salesforce and you're partnering with the integrators and it's taking you 1 step away from the end game and the solution approves to us that SaaS is only the start. It's only part of the answer. There's so much more or less so complex. So this exists today, right? So if you're going to 1 of the traditional providers and you're buying their SaaS, they will say or you will say or the industry will say, who's your system integrator, Usually, the big 4, IBM, Accenture, you know the likes right? And I'll say which methodology you're using, they'll bring in project directors and project managers and talk to you about Prince2 or PMBOK and then they will say, who are your SMEs, we need SMEs in your organizations, we need [ BAS ]. Can I just go back 1 slide here, please. Yes. SMEs, [ BAS ], they will talk about config -- configuration documents as is to be designed to get very, very complicated. And then when you get there, they'll say, okay, we've got to talk testing. You need test managers, testers, test script, test rail, cutover plans, data migration strategies, interface work, you need all of this complexity. It's catching up with me. This is a traditional way. And this time is long and expensive. But we're going to simplify the ERP world. We're going to change the ERP world. We've done it 4x. We've simplified first with relational databases, and then we took advantage of PCs, then we went web. And fourth, we came a Software-as-a-Service company because it makes life simple for our customers where we deliver our Software as a Service. Just like salesforce.com change the world and turbocharge SaaS, TechOne's going to change the world. It's a game changer. It's the next logical evolution for us and we're going to take away the pain of long, complex, risky implementations, expensive implementation, then simplify it for our customers and our prospects in our markets. And we call it SaaS+. So hopefully, that just gets under the covers a little bit more. Okay. So for you in the market, we're going to transition very carefully from low-quality one-off implementation revenue to high-quality recurring revenue, and we're going to do it without missing a beat for our customers and without missing a beat for our revenue and our growth. We did it with license, and we're going to do it again with consulting and Cale is going to take you through that detail a little bit later. And our final core belief. Maybe 1 of the most important is we dream big and we deliver. We tackle the complex, we face it difficult. We've always got 1 [ high-end ] today delivering for today -- today's challenge and focusing on the future. We deliver solutions that stand the test of time. And we're masters of our own destiny, you would have seen, and we don't follow the standard path. We do not believe in the standard path. We believe in different and we embrace it. Now I always think about a company founded out of Brisbane in 1987, creating an ERP, taking on the world's biggest SAP, Oracle, Microsoft in Infor, Workday and winning. These companies have tens of thousands, if not hundreds of thousands of developers creating their functionality. We've got 400, you probably will pass most of them upstairs. Those 400 developers create the beautiful products, the 1,300 people in TechOne create the solutions and we deliver for our customers and we delivered so many milestones, and I just want to share a few of those with you. These are the most recent milestones. So a couple of years ago, in '22, we finished the fourth generation called CiA. We successfully transitioned all of our customers from on-premise to SaaS without skipping a beat for our customers, for our revenue and for our profit growth. As an ASX company. We've just entered the 100 -- the U.K. is profitable. The flywheel is turning, and we launched DXP. Now traditional ERP focuses on the back office. The accountants are processed the month in, the payroll [ clocks ] on the payroll. The people approving your DAs, but DXP gets us into a place that no 1 has ever been before, the front office for you and me, the rate payers in any Council in Australia and New Zealand or the students in the university. And finally, we became the world's first SaaS+ company. Now these achievements that don't happen overnight. The result of a very clear strategy, consistent strategy. That's still the test of time, and we execute against that very clear strategy. Our team have got that relentless focus, as I said, the discipline, the execution, the grit determination and they take bold and calculated risks. And this translates into our ambitious R&D agenda. Now to wrap it up, we are unique. This is our Blue Ocean strategy. It's this clear strategy which resonates with the market and why we win against our competitors. Once we land a customer, they expand with us over many, many years by taking more products and more modules to streamline and automate their business. It's why they stay forever, and it's what fuels our growth. Now SaaS+ can only happen because of the Power One. It can only happen because we own our broad and deep ERP. It can only happen because we've got 37 years of deep focus into 6 vertical markets, and we're hyper focused on those. It can only happen because we have our own consulting team. We don't use any partners that can only happen because of the innovation in our products and solutions. No one else can deliver SaaS+. Now TechOne was founded in '87, listed in '99, and we've demonstrated strong consistent steady growth at whole time. We've doubled in size every 5 years, and we're going to continue to do so. It's in our DNA. It's what makes us tick. Firstly, investors always ask me why do you always put your ambitious targets out there. And for us, it's very simple. It's 1 of our values, make the impossible possible. And when we set the ambitious goal, we say it, we align our people and we do it. So about 5 years ago or 10 years ago, we set a target, and that target is a very ambitious target, and that's a target of $500 million ARR by FY '26. You all know -- and think back 5 years ago, we saw this as an ambitious target, a really ambitious target. And if you think back then, we were still in our Cloud journey. In fact, we're pretty early on in our Cloud journey. Our fourth generation CiA wasn't complete in a long way to go, flips to SaaS, that was just an idea at that time. Our U.K. business had its challenges. We had challenges localizing our products. Of course, we had the global pandemic along the way. So you can see that setting ambitious goals is core to us because it creates a focus for us, and we stay on that path. 24 months ago, I got a bit excited we can see that we're going to beat this target we saw the momentum. And so 12 months ago, we upgraded that target. We brought that target forward. We brought it forward by 1 year, and that's $500 million ARR by FY '25. Now this strategy, it doesn't drive us anymore. And so we're going to bring it forward again, bring it forward another 6 months, and we're going to deliver it in the first half of '25. So with $500 million, it's locked and loaded. We're going to continue to double in size every 5 years, and we're going to do it because it's in our DNA and all of our strategies, all of our initiatives they're designed so that we can continue to double in size every 5 years. Okay. We've learned through trial and [indiscernible], we've learned through experience that we need multiple platforms of growth. It gives us diverse revenue streams and enables us to be confident in doubling size every 5 years because we all know in business, some strategies or some products or some regions fire in some years and some fire in other years, right? And if you're flying the [ ball ] In our business, you'd see that the sum of all of our strategies, they're much, much bigger than our stated goals. Our plans are ambitious. We do them on purpose. It's to make the impossible possible. It helps drive our teams, creates a bit of buffer for us. They're long-term strategies. None of them happen overnight. But with our vision, our ambitious goals, our people, the TechOne DNA, we've got all the ingredients and to give us confidence to continue to double in size every 5 years, and I'm going to show you how now. Okay. So we know this. With all of the customers now move from on-premise to SaaS product takeup by our existing customers has accelerated. And our target is between 115% and 120% per annum. That's existing customers taking new products and modules to streamline their business. If we do 115% alone, that 1 strategy can help us double our business every 5 years. It starts with a couple of layers, right? So all of our contracts -- or the majority of our contracts have a CPI factor built in, on average, that's growing 2%, 2.5% per annum, very predictable. Then the way we license our software is by users. So as users grow, our licensing grows. Now in local government, that's linked to ratable properties. The number of ratable properties and our local government is how we price our products and our modules. And history tells us that local governments grow, on average, 2.5% to 3% per year. That's very predictable or in higher education, we're licensed by students, the number of students that a university or a TAFE has. And history tells us, on average, on average over many years, grows 3% to 3.5% per annum. That's very predictable -- you might have heard us talk about just touch on CiA Live. That's a software we use to seamlessly move our customers from the third generation to the fourth generation, it's very predictable. Now our second platform for growth is the significant whitespace in our APAC customer base. So these are customers that have only 1 or 2 or whatever modules of ours, but there's hug whitespace. It's the main game. This is the main game for our growth. We grow by providing value to our customers with our existing 16 products and 500 modules to streamline their business. Our current whitespace is very large. We know our markets. We know them better than others might have heard us tell a story where we went to Gartner or Forrester and said, tell us about the markets, and they couldn't because they don't know them as much as us. So we know them better than everyone else. We've got detailed models, a big model. We call it Eldorado map. This every customer and the products they use of ours and the ones they don't have our so we can sum it all up. And we've got very, very deep relationships with our customers, and you're going to see that. and we plan for the long term with our customers. So we've got long-term visibility of product take up with our customers. And Stuart is going to take you through total addressable market after the break. And that white space, it grows and grows. It never ends. Our third platform for growth is that R&D investment I talked about, we built additional products, additional modules, I think back in 2008, we had 8 products. Now we've got 16. Our current larger investments. You might know of some of them, DXP for local government, DXP for higher education, App Builder, there's many, many more. Our fourth platform for growth is SaaS+. It simplifies our business, it's a compelling value proposition. It lifts ARR by 40%. Our fifth platform for growth is our history of acquisitions in TechOne. We've done 10 or so in our history, but these are additional products that give us IP, make our offering broader or deeper to the vertical markets we serve and more mission-critical and doing so more sticky. Our sixth platform for growth, new logos. These are the -- when we say new logos, we mean prospective customers don't use TechOne products in any way, shape or form in any of the vertical markets we serve. And then the seventh platform for growth it's struggling to catch up with me. Can we go to the next slide, please. The U.K. -- the U.K. provides significant opportunity and we haven't even scratched the surface yet. Okay. As I said previously, there's a whole lot of financial metrics that we use to run our business. And the highest priority for us is net profit before tax growth. And you would have historically known our heartbeat of 10% to 15% at the last sort of guidance we've upped that -- we upped that heartbeat from 10% to 15% to 12% to 16%. And if a little bit cheeky, you can see where we're going with that. The next is ARR growth. And at 15% per annum, that will enable to double in size every 5 years. The third is what we call cash flow generation, stripping out all the accounting jargon, cash flow generation, matching net profit after tax -- and finally, the last 1 is net profit before tax margin growth. Now if you go back to in 2011, that profit before tax margin was 17%. Last quarter, all the way to today or '23, full year '23, that was about 30%. And we've committed to a medium-term target of 35%. But I just wanted to highlight that our priority is significant investment in R&D, so we can continue net profit before tax growth and ARR growth. So they're higher priority. And we believe this is investor focused and conservative and unique in our industry, and it's allowed us to weather the storm as the market split from growth at all cost to a profitable growth rate. So we don't focus on the rule of 40, but do the maths were about 60 and while we've got significant investment in R&D, we'll continue our net profit before tax growth and ARR growth that investment already will have a short-term impact on margin. But I just want to let you know that we're staying true to our priorities, net profit before tax ARR growth. We do it all within balancing all those things. And I would just want to restate, though, that we expect margin growth this year even with the impact of SaaS+ and Cale is going to take us through that SaaS+ impact later. Okay. So we've got $500 million locked in for the half of FY '25, all of our new strategies, initiatives their design so we can continue to double in size every 5 years, and we've learned that we need multiple platforms for growth and diverse revenue streams because some things are faster in some years, some things are faster in other years. Now we're going to continue to double in size every 5 years with these existing strategies, and that doesn't even include going to a new region. It doesn't include going to the U.S., it's just a twinkle of an eye which in turn gives us the confidence to announce another big ambitious goal. And here it is, $1 billion-plus ARR. So as I said, we originally set a goal of $500 million ARR by FY '26, and we've been working hard on delivering that. In parallel with delivering on that, we're working on this next big goal and because we finished $500 million ARR a year early, we have to accelerate our R&D investments for growth. And you would have seen that in the last couple of investor releases, right? And -- to be honest, we could have sat back and taken the easy way out and stayed on the original strategy in a $500 million ARR by FY '26, but we finished it early. And so our strategy, the same for the last 37 years is we've got all the ingredients, we've got SaaS+. We're going to simplify our business again by being just an ARR business coming off consulting revenue. We've got strong ARR growth. The U.K. is powering. We got high margin. And so today, we announced $1 billion ARR but we put the target out there by FY '30. You guys all do the math. That's very exciting, and it will be very exciting what it means for you, our shareholders in the room as well. And we haven't even talked about adding a new region in the next 5 years. Now folks, thank you for your intent listening and typing away this morning. We're going to stop for a morning tea break. I'll just bring up the thing there. Okay. So short break during this time, come outside, talk to our team members, they're going to be available on the booths. Have a look at the software's functionality, live refreshments would be out there. And we're going to ask you to come back in about 15 minutes, folks 15 minutes, and then Stuart will take you through an interview with 1 of our customers, our total addressable market and you'll see a demo of the software. Thank you, everyone, for the first session.

All right. We are very, very proud and privileged to support over 1,300 customers. managing communities and infrastructure across Australia, New Zealand and the U.K. Our mission-critical software empowers airports, hospitals, the Department of Agriculture, the Bureau of stats and many, many more. Our software provides the clarity on how products and support our customer and the partnership we've had over 37 years, we've not only transformed the ERP market, but we've had a positive impact in the communities we serve. Now I could talk to you all day about that, and I could try and explain it to you, but we thought what better then to get a CEO of a Council up here and have a chat with them related to what we do. So please welcome Michael from Hills Shire Council on stage. So a little bit about Hills Shire before we get into it. So Hills Shire has been with us since 2002. They have -- they do about $2.2 million in annual recurring revenue with us. They use our EAM, our Supply Chain, our Property & Rating. Our ECM, keep on going. It's a long list. Our HRP, our Performance Planning, Spatial software for about 200,000 citizens within the Shire itself. So that is Hills Shire. Hills Shire is known as an Innovative Shire as well. So we can spend a few minutes understanding what you do. But before we start, how do you become a CEO of a council?

Good question. And for me, the pathway was was started in year 11 and year 12 back in the early '80s where like most of us, I think, at that time, you were sort of struggling to hone in as to what it is you're going to do. And I'll never forget, I was always interested in the sciences and geography and things like that. And my dad was a butcher and he came home 1 day and said, it's visit from a health inspector. And he ran around the shop and shine torches in places where you otherwise wouldn't expect torches to be shone. That looks like not a bad job. So then I investigated that a little bit more and thought, well, yes, it's based on the science degree, which is what I was interested in. So I started life as a trainee Health and Building Surveyor at Blacktown City Council, which is 1 of the largest councils in New South Wales, but on the country and...

Customer [indiscernible]

It is okay -- and from there, just worked your way through up to I was appointed in my current role with the Hills Shire Council in 2017. So being with Council nearly 20 years, so just got 19 years. And overall, I've been in the industry just over 38 years. And I'd imagine -- like everyone in this room that's got somewhere in life, I think sometimes it's a little bit of luck. But also, it's about putting yourself in positions where that might stretch you a little bit and particularly in positions that no 1 else wants to do. So a couple of councils I work for. I've only worked for 3: Blue Mountains, Borkum Hills and or now the Hills and Blacktown so all [indiscernible]

All TechOne customers.

All TechOne customers. And yes, so every now and again. There will be a role come up that no 1 really wanted to do. So I would stick my hand up and do it. And reason I do that is you really couldn't fail in that circumstance, could you if no one wanted to do it. So anything was going to be a bonus and they have it so you land yourself into the top gig and I love it. It's a really rewarding career, a really rewarding role. I've got a terrific organization. Its people are fantastic right from the governing body, their politicians and it has its challenges at times, but right the way down to the trainees like I was in 1996.

So we're going to spend a few minutes trying to unpack what the council does, so then we can actually associate the software. We provide to them to try and help operate that Council. So let's just start with -- what are the KPIs for you? What -- how do you measure that the Council is running well? How are you measure it?

Yes. Look, there's a whole range of measures that you can imagine. Because a Council is so much more than just [ rise, rise ] rubbish. It's a very complex business that's got effectively for us around about 28 different business units operating in different parts of the organization that together come under 1. So there's some traditional corporate-type KPIs around finances around your outputs and those sort of things. But more than anything, we measure our performance through the voice of the customer. So what do our residents actually think of the services and facilities we provide and do we represent value for money for them. So we test them independently through customer service, surveys, targeted and more random ones. And we also have aligned ourselves around some what we consider quality of life indicators for our residents. So we start to measure progress around some of those higher order things. So -- so quite a broad suite of things that we take into account each and every year. And certainly, as the head of the organization, and in New South Wales, at least, I presume it's very similar to here in Queensland. I am the governing bodies only employee. So -- the other 700-odd for me or I'm responsible for, but the Council or elected Councils, I'm their only employee. So they have no right to hire, fire, otherwise manage the rest of the employees. That's my job, but they manage me. And so I just in the last week, undertook my annual performance review with the governing body, and they measure me around a number of things at a high level around the organization's finances, workforce turnover, things like workers' comp even implementing resolutions without delay and not forgetting one. So if the council has made a decision to do something. Well, my job is to implement it. So those sorts of things.

And the beauty of it was this performance review was done in our software. So if you want to see how this performance is, we have a copy of it. Talk to me about technology. So as the Councils have matured and changed and the expectations of your citizens, how has technology played a part.

Yes. Look, it's immense. If you think about how our Council functions and how our Council is productive, it really comes in 2 forms. One is your people and the talent and the skills and abilities of your people. But also in technology and changes to technology. And I think about how I would manage a building approval back in the '80s to the way it's managed today, and the information at your fingertips today is completely different. So that will be our next step changes into the future. And I've said this story, I think earlier today, I can remember in year 6, the year 6 teacher telling the class, which I was in that you guys are lucky. Technology is going to mean more leisure time for you guys. Well, I'm glad that worked out for a [ sole student ]. So...

We're still working on that part. So let's unpack a little bit about the complexity of a Council. So if you look at the Council and we're going to try to build it up for you. The first thing you have is your infrastructure. We're talking roads, sewage, pipes. What does that look like for you in the Hills?

Yes. Look, I mean, our whole Shire is 300 square kilometers, which is a big enough land mass, but there are other councils that are certainly a lot bigger than us in terms of land mass and 200,000 people scheduled to grow to 250 over the next 10, 15 years, possibly out to 300 in the next 30 years. So quite a bit of growth, and we're in about 30% of the footprint of the Shire. So 2/3 of our Shire is rural. One where the Shire is urban. And if you think about it, we sit on around about $5 billion worth of public assets that aid the functioning and the quality of life of our residents so whether they be roads, whether they be drainage networks, which could be in the form of physical civil assets or soft assets like rain gardens to retention basins and the like. We have buildings. So we have community buildings from picking shelters, bus shelters right the way up to some fairly sophisticated administration buildings and things like our Fitness and the Aquatic Center, which we just had the pleasure of knockdown and rebuilding after 50 years in the last couple of years. So quite critical assets around our entire network that we rely on to deliver our services and our residents rely on to actually get on with their lives.

Amazing, now if we talk about the Council and the assets you actually manage, how many people on your team, how big is the Council and also talk about the third parties that need access to the systems as well.

Yes. So we're about FTE of around about 760 people. But that's only part of the story because we have a whole lot of reliance in terms of our project delivery with new infrastructure that we're building. But also things like garbage and cleansing, which we use contractors to perform for us. So you should probably add another 300 to 500 FTE at any 1 time depending on what we're doing. Just with those other partners that we've got involved in our business. And it's incredibly -- whether it be contractors or whether it be our own staff, it's incredibly diverse.

And again, 1 of the other things you're most proud of is your parts and your facilities that you have. Talk to me about how you manage that? And how do you get measured on that as well?

Yes. So there's obviously strategic measures around basic units of measurement of hectares of open space per 1,000 people. So there are high-level benchmarks that we measure ourselves against. But then it's about the quality in the use of those spaces and the user experience around that. Now we've got things from natural bushland assets, which we don't do terribly much with other than manage bushfire and manage perhaps environmental protection or rehabilitation. Some streams, so creeks and streams that make up the river system. So then you start to get into your local parks. So we like to have every resident within a 400-meter walkable distance to a local park and we find that's about the distance that a parent will let their children go unsupervised. So whilst you might have a 400 special requirement, you then start looking at, well, okay, -- that's no good if it's next to a major road and the kids have got across the major road. They're not going to do that. So you look at those other sort of features that would cause you to arrange them a little bit differently or add more and then we go up to more district facilities and more regional facilities. District facilities are the sorts of things that you generally find your sporting fields located and traditionally in these days, we just opened 1 a couple of months ago, and we're about to open another 1 in a few months' time. They're effectively 4 sporting fields, so based around 2 cricket ovals. So 4 short formatted football fields or soccer fields or something like that, that make up the cricket ovals and many of these basketball courts, tennis courts, playing facilities, those sorts of things right the way through to aquatics and even just all abilities play with water play and all those sorts of things.

One of the things I don't think the Hills deals with, but some Councils that we manage to do. They've got to manage airports and some critical infrastructure as well. I know it's not something you necessarily do but you have critical assets you have to manage.

That's right. And look, I'm probably lucky that I have to look after an [indiscernible] to be honest because that would be pretty complex old of thought. But yes, our asset management of our asset classes. It is important that we understand them very well. It is important that we understand like your car, how it should be maintained for its optimal service life. It is important to know when we should be planning interventions to those assets to keep them in service or in fact, retire them, whatever the case may be. So the most extreme would be the 1 I just mentioned, which is our Fitness and Aquatic Center. So if you can think of this a shy of roughly 200,000 people, 1 pool, and that pool was built about the year I was born in 1967 and was very tired, probably didn't represent best asset management decision-making over its life. And we took the decision to work with the elected body first to get their approval. But then the users to actually shut that facility for 2 summers while we knocked back and rebuilt. And trust in governments probably had a low in my lifetime, I think. So to get the trust of our council and the trust of our community to do that was quite a complex process. And I can remember the interrogation through the council meetings, which are all public -- public meetings, public decision making to finally get a decision that we're going to spend $55 million knockdown and rebuilding our only pool. And then to pull it off during COVID for under budget a little bit over time, but under budget was remarkable. And that facility now is set up around its technology and its need so that, hopefully, in 50 years' time, the future generation is coming off a stronger base around this decision-making than what I and our council were with this facility, we just upgraded. So very important that we understand a lot of data about our asset network, our road network, our drainage network, our building network, recreational network, very important. But not that much data that you become captured by data. So we've had a really strong focus on capturing the data that is critical to our decision-making, not just nice to have. So that hopefully, it drives us to a more efficient expenditure over time on that asset -- on those asset basis.

And then when we think about the council, the thing we always think about is housing. So we think about housing from getting our bins picked up, which I'm sure you hear about quite a bit. I'm sure you're popular in the pubs when related to that subject. But it's far more complex. Can you just spend a short minute on that?

Yes. And it's interesting because our Shire is growing pretty quickly. And last 5 years, for example, the housing targets the state imposed on us was about 9,000 dwellings in the 5-year period. And we thought we did really well at 10,500. And that was so quick that we couldn't keep up with it really, let alone government infrastructure around major road upgrades schools. We've got the most overcrowded schools. So they couldn't keep up with the investment that they needed to as well. And just recently, we've been asked with -- well tasked with a target of 23,500 dwellings over the next 5 years. So that is phenomenal growth, and yet we don't build a house. So we've got to make plans in our planning documents to show where that is likely to happen. We've got to support that with our own business plans around infrastructure. So we're going to collect the contribution of the developer to buy the infrastructure that we need to provide for that new community. We need to take the role of risk in that to a degree because you're dealing with fragmented land ownership to begin with. So parcels are being merged, a developer will come and buy a part of it, but that might happen here versus there. So it might not be a logical rollout. My Utopia is having a development that comes in that has the whole growth area, and then they stage it and roll it out. Well, most of our growth areas aren't that. You start off with about 200 to 255-acre land owners, moms and dads, all at their various life cycles. And then the zoning comes out of the top and then the market's got to try and sort that out. In the meantime, we're sort of playing banker around some critical infrastructure around road upgrades or order upgrade recreational assets and the like.

And then the final piece of the puzzle, again, I don't think the Shire has to deal with this one, but water and wastewater. So we have a lot of councils that have to manage the water and the wastewater too. Can you talk a little bit about that from your space.

Yes. In Sydney, generally, water and wastewater is managed by the Water Authority, the State Water Corporation, so Sydney Water. But certainly, in our rural areas, there's councils that would manage sewerage and water facilities at one of our neighbors Hawkesbury City Council. They manage sewerage for their towns. So I guess that shows the diversity amongst councils in industry moreover, but also shows just the level, like I said earlier on, even in our Council, 28 different businesses, all operating in their own for one of a better word market, some of it's a monopoly markets, but some of it, we're competing with others for those services. So that's childcare that's the Aquatic & Fitness Center. Not too many competitors do a 50-meter, 10 lane heated FINA compliant olympic pool, not too many people compete with us on that, but certainly on the gym and the things that make money around lenders when they do. But right the way across to the other services, like we'll put a meal on your table through our Meals on Wheels program. If you need a book, you can go to any 1 of our libraries and you can order the book. And if we haven't got it, we'll buy it for you, free of charge. So the road network, the footpath network, the recreation network, all those.

So let's get under the hood then. So I think we painted a picture of the complexity of the operations you deal with. We'd like to think that we're kind of the backbone of how you operate the council, but we're one of many. So talk to us about that, how many are -- different kind of vendors do you have that you have to deal with? How many critical products do you have that operate the council itself?

Yes, that's a very, very good point you make because across those business units, we would probably deal with about 28 different product vendors across that for a variety of reasons. And part of our recent decision with TechOne is to further consolidate and cut some of those opportunities because -- obviously, there's some of our facilities that the customer experiences is going to be very different to other services that we provide. So if you're a rate pay, just wanting to pay your rates, you're going to you're going to expect a different contact and a different service standard than if you're looking to book a gym session or a learn to swimming session for your children, and that system that deals with that is going to be really driven by around, well, how do we compete with the likes of the Virgin Active's and those private gyms, how to -- what's their customer experience, how do we measure up with that? So there are times where we would -- we do need to and there's 28 occasions where we go to other best-of-breed type of solutions. And then the challenge then is to integrate it back to our core corporate systems. And I think we've been with Finance One for an awfully long time...

2022.

Yes. And and the integration back to that is very key to us.

So we're going to go a little off script because I'm going to try something and see where this goes. But I think this room mainly knows me for talking about net revenue retention which means that selling additional products into a customer base, it's again been a customer since 2002 and recently just bought Property & Rating from us. Why did you do that?

We're at a bit of a crossroad. We've done a little bit of a naval-gaze with some independent help around our IT strategy and our IT needs. And you already heard a little bit about my background, came through signs or health and billing surveying. So what I knew about IT, I literally could put on the back of a [ post stand. ] So I needed some help and started the executive and we started looking at the risks around the multiple vendors -- started to look at the risk around -- our property rating, our financial, our document management. These are very, very core systems that provide obviously a service delivery platform, but also an efficiency measurement and a compliance platform. So we did a bit of a navel-gaze around that. And about the same time TechOne was talking to us about the future and where it could be. And in the end, it became a fairly clear alignment that this was the direction we needed to head. It's going to be a massive management exercise for us across some of those business, but we've already involved some of those businesses in that decision. So we see that, that will do a couple of things. So it will give us better data and one version of the truth of that data across our operations. It should change the way we work and maybe should also enhance the customer experience in the fullness of time because of that one version of the truth. And it should also help us as leaders in our leadership team manage the businesses differently and more effectively. And at the end of it, hit the compliance tick as well, particularly around our record keeping and privacy management and all those sorts of things.

Perfect. Perfect. Last question. About 18 months ago, we came to market and introduced SaaS plus from your desk and from what you see, what does that mean? What do you think that means to the marketing and to the councils?

Well, for us, it was -- again, explaining my background, you can see I have technological limitations, but one thing is for sure, we knew things will always change and always involve and probably at the rate that none of us are ready for. So we just saw that as the next reiteration, the next generation, if you would like. We did see advantages for us around moving to a model where we're less focused on on-premises type activity, storage and IT effort for one of a better word to a new platform. And that was not really a question for us of -- you shouldn't do it. Well, really, if you didn't do it, we're going to, I think, hold ourselves back in and not be as competitive in the future as we potentially could have been.

Thank you. What I hope you see today is kind of a small example of what I was mentioning before. I would say we have the best developers in the world. But it's our relationship with the community that we get to steal their IP to take that knowledge and build it into something. So the products we've built over the last 37 years has been a result of the relationship. We don't have the IP. We've got the developers. But because of the Power of One, it's that integration between where they want to go and what they're seeing and our ability to translate that into products the market wants and that's made us successful. It's an unbelievable partnership what we have with Hills. I think it was last week we just found out Michael said, do you want to come down to Brisbane for the day and talk to investors, and it was, yes, let's go. And that's the relationship we have. So thank you so much, Michael, for doing this.

Your very welcome. And I appreciate the time and it was not a very hard decision to come to Brisbane in winter, I can...

Good stuff. Thank you. It's now -- to start the conversation related to TAM, let's get into it pretty quickly. In summary, the TAM for local government for us is $3.2 billion, with the product we go to market with called OneCouncil. Now we've heard from Michael, what it means to him. We tried to paint you a picture of the complexity of it. We try to give you a little bit of flavor of how we got there, but enough talking. You came here to see some software. I'd like to invite Loretta and her team up to show us this amazing product in action. Come on up.

Hello, everyone. My name is Loretta Libke, and I'm delighted to welcome you to our demonstration today. A little about myself. I am a former CIO of the third largest council in Australia. And I have over 23 years experience in local government. I know I don't look old enough -- do I. Thank you. So across that time frame, of course, I have implemented a number of core business systems, but more importantly ERPs, and most notably, TechnologyOne's ERP. So that was Property & Rating, Document Management, HR Payroll. In addition to that, I implemented or oversaw the implementation of TechnologyOne's asset management system. Now this involves taking hundreds of staff and I mean hundreds and hundreds, mobile in the field. So their work orders would come through to their devices out in the field, and they would attend to that work and close out the work order. Now you will see some of that in the demonstration shortly. Now it's for this reason that I can truly say that both Council and TechnologyOne share a common goal. And that was referred to by Ed, where he mentioned it's all about making life simple for the communities, and that's very important at a local government level. So today, in the presentation, we will be showcasing our OneCouncil solution, and that was developed specifically for the local government industry. So this presentation will be kindly hosted by River City Council and whilst it sounds like Paradise living in Red City, they do need to contend with seasonal flooding. So the team there will walk us through some real-life scenarios using OneCouncil. Throughout the room, you will find some screens here to the left are the business processes that we will be using throughout the demonstration. And over here to the right, will be the product. So this is OneCouncil as we use the product and we will highlight the individual modules as we go through those business processes. And most importantly, a demonstration of our live software capably run by Alex -- hi, Alex. Okay. Let's head over to River City and get started.

Good Morning, everyone, and welcome to River City Council. My name is Poppy, the CEO here, and we're thrilled to have you with us today to witness firsthand how we use TechnologyOne's local government solution to enhance business efficiencies and simplify our operations. So as a CEO, I need to focus on 3 key areas. The first 1 being Customer Satisfaction, which you can see up here, Budget Management, which you can see across the 3 graphs here and Town Planning, which you can see up here. The Council on a Page dashboard, which is what you're currently viewing enables me to stay across KPI tracking as well as daily council activities. Now it's really important I take a measured approach to each day, dealing with the key performance indicators as well as the inevitable issues that arise from day to day. So it's really good you could be with us today because we've got a really busy day at council. First of all, we're going to meet our new starters. Then we're going to have a chat with our maintenance team, and then we need to finalize our rates for the next financial year, which can be presented at the next council meeting. So let's kick out the day by going to me our new starters. We've got 1,500 employees at Council in total, which you can see on the dashboard up here. So it's really important that we feel welcome from day 1 and that, that onboarding process is simple. Hi Lisa, how are you?

I'm good, thank you. How are you?

Good, thank you. I wanted to personally introduce myself to you today. So my name is Poppy, I'm the CEO. And I just wanted to make sure that you received your welcome e-mail. Now they should have been automatically sent to you about a week ago.

Yes, I did.

Perfect. So with the onboarding solution now part of OneCouncil, the onboarding process is now fully automated and simple. So I'm going to leave you to it. If you see me in the corridor, please feel free to come over and say hi, and let me know how you're going.

We'll do. Thanks, Poppy. Well, I did all of the onboarding tasks last night, so easy and to add my emergency contact and my bank details, but I did notice that I can already apply for leave. So maybe I'll quickly do that. All right. Well, I do have a short holiday plan for New Year's in Nusa and I'm already counting down the days. Let's see if it's as easy as everything else. I think I will be away from maybe the 31st of December, and I suppose I'd better make it short as I just started here. So maybe only until the 8th of January. Yes, that looks about right. [ cool bananas ], hey, and you check that out, you can see how much leave I would have accreted by then. Okay. I better finish this off and get back to my induction, though I cannot wait to chill up by the beach.

This isn't good. Have you all seen this? It looks like it's related to the festival that happened on Saturday. I'm wondering how this made its way into the newspapers.

It's a beautiful Saturday morning here in River City. [Technical Difficulty] Here we go. All done. How easy was that? And you know what, I might give the paper call as well just to let them know about this issue, concerned citizen Tom has such a nice ring to it.

Whoever the new papers found out about this, we better get on top of it straight away. Otherwise, our customer call center could be inundated with calls plus we'll receive hundreds of digital requests. Okay, I'm going to bring up the customer on the page dashboard again. And as you can see here, the number of requests being locked has increased, but not to worry, I'm sure our maintenance team already have this in hand. Why don't we meet Shalene, our maintenance manager, and you can see her team in action.

All right. Let's see what we got on the plate today. First things first. I'm going to tidy up around here. Got to do everything my damn self. All right. A new starter is starting today. So I might take a quick look at my team's information. The new starter checklist is automated. So it's really easy for the new starters. But there's also other automations as well. For example, issuing IT equipment, or perhaps some training enrollment. So I don't need to spend a lot of time sending e-mails to 5 million people around the business. It's all just taken care of. All right. As a manager at River City Council, my team's information is at my fingertips. So I can see here, for example, my new starter listed. And I've got everyone's current leave balances there and everyone's submitted leave requests, right? So that's all looking good. Let's go find Lisa and we'll go sort out that foot path issue. Welcome aboard Lisa.

Good. Thanks, Shalene. You're going to get started.

Cool. That's good. So we need to take a look at this foot path issue that's got everyone up in Amsterdam. The good thing is, I can just crack out my iPad and we can get started right away.

Wait? You can use an iPad?

Yes, it works on any device.

That is so call. In my last job, this is all paper-based.

The TechnologyOne's mobile field app is designed specifically for field workers, but it's still connected to the rest of the system, which you'll see more of later. This screen here shows us the incoming work that has been routed to our department. The system uses workflow so that we only ever get work that's relevant to us. So we'll never get like a waste management request, for example.

That's really great. It must save tons of time.

Yes -- Ah, I can see you've already put leave in on your first day.

Yes. Look, I had a bit of time. And I thought I'd do it before I forgot.

Well, I guess it's best we know these things as early as possible. Would always -- would want you accrue that week. Okay. Let's take a look at this request that the community member has added. There it is. So, I can see the pin that they have dropped. That's cool. Now this is one of those cases showing where everything is connected. The maps here are embedded, unlike other products that use third-party maps. So as soon as the pin is dropped, it's available everywhere in the system. Now I can also review any photos if the person may have added to their request.

Oh, Yes, that tripping hazard is pretty bad.

Yes, I agree. Okay. I'll generate this work order for this job and which I can do right here on the same screen. Let's click that button up there, and we can get that going. Traditionally, requests like this would be triaged back in the office. But now I can create a work order here on the iPad, I can spend more time out with my crew instead of behind a desk. We can actually access heaps of other stuff here as well. If I click over to the assets tab, it will show us the assets that are actually around us at the moment. So we're here out on the street, and we can see there's some -- maybe there's some pipes or something there in the street there, but we can also go inside the building.

Oh, Yes -- wait, I can see my desk from there.

Right. So we're looking at level 5 here at the moment, and we can see all the assets that are there. We can also actually just click down to this level, Level 4 and see what's going on, on this floor. This kind of thing really helps new starters like you to find our assets that are inside of buildings.

That's really great. I've never seen this kind of layered representation before.

Okay. Well, let's get back on to the draw board hazard and get it out to the truck. Now we have our work order. The real work can start. So we're going to open up the work order here for that trip hazard. Now we can do a lot of other cool stuff right here from the work order as well. So for example, if I needed to reschedule this to a different crew, I can just do that here, and then it would appear on their app when they log in. I remember the old days, we used to have to do this by calling back to corporate, don't need to do that anymore.

Thank goodness for that.

Okay. I can start the time around this job, which will track obviously, how long we take to do the job. And once we arrive on site, and we see the physical issue in real space. I can actually use my device location to record precisely where the fix is going to happen. So it might not exactly align with what that customer has added. Now it looks like we just need some cement for this one, Check this out. I can also just stick this on my work order and the system will automatically order replacement for us.

Well, really no filling up manual supply orders?

No. I can directly access the catalog here, and this uses the industry standard for categorization of catalog items. Yes, so I say that's free time spa. Okay. Let me add this cement here. That looks good. Now that we've done the physical work, I will update the condition on the asset. Doing this makes it easier for our boss. So they always know the current state of the footpath, for example, when they do their planning, they always have the most up-to-date information about all the assets. Let's just add that here, sit back for today and the condition and that's looking good. And that should be it. Done. Awesome. Now I'll stop the timer and complete the work fleet, the work order.

Perfect. When do I need to fill up my time sheet?

No. That timer I was just talking about, it automatically flows back to payroll for everyone on the crew. And they will even know if we've done something -- we might work on a public holiday -- as if -- but anyway, we don't need to do time sheets at all.

That's really good. I hate doing time sheets.

Also, I don't need to let anyone know that the job has been done. All the notifications were automatically sent out, including to customers whose request retired to this work order.

Now come off it. That's insane.

With everything here on the app and all these background processes and workflows taking care of the paperwork, we can just focus on getting out to the next job.

Excellent. Let's head back to the truck then.

Thanks, Shalene and Lisa.

Ah, Cool. I just got a notification that the request was completed. Great job, Council.

Well, it's great that the footpaths been fixed and great to see communications are working. It's crucial for customer satisfaction that we allow our community members know when their requests are being completed. It can be really disheartening when you raise your request and then you never hear back. Okay. It's time for us to meet Harry. Harry is one of the maintenance planners at council and looks after some of the analysis and strategic modeling of the council infrastructure for us.

Thanks, Poppy. Whew. It's been a hard day at work. It's truth. This rain has been great for our gardens, but, man, does it create some pot holes. Did you all know a request from the community aren't the only way we can identify defects here at River City. We're using TechnologyOne solution where we mount cameras on various vehicles like garbage trucks, council [indiscernible] And with the help of AI and machine learning tech, we're identifying hazards better than before. Let me show you some now. Here, we can see what those cameras have picked up. And you can see all of them down the page here. It's even circled the problems in red for me. We can see here, it's even telling me how severe each issue is up in the top corner. If we have a look at this photo, it can even categorize a crocodile crack, which is different from pothole to a sinkhole. Now this is something we could never ask the public to do. So have a look at this photo. Even I can't tell what it is, and I've had years of experience, as you can tell, Alright? It would be nearly impossible for someone even from council to raise all these requests with all the information that we really needed manually. Now while we still need to allow citizens to raise these requests, this is where those cameras really come in handy. They can detect problems without a single customer involvement even being necessary. And we're now able to address some of these issues before a single complaint is even lodged. This means for us, it's way more cost effective as we can schedule everything in an area at once, meaning less time driving out and our call centers experienced less calls regarding asset maintenance, too, because we're fixing more defects than ever. This is a great outcome for our community as it means the road issues can be proactively managed. And I don't have to spend more time on the phone and who doesn't love a happy customer, right? Now with all that camera data that we gather, it can be used in a couple of different dashboards and analyses to help us plan ahead smartly. Let's jump into some now. The data you're going to see today helps us make decisions about our city's infrastructure based on real information and can even help us to forecast the future, too. If it's degrading faster than we expected, not only can we tell, but we can plan for it. So any work that they may have done out in the field has already come through to these dashboards, meaning we can always be up to date on our assets health. So if we have a look here, we can quickly gain an understanding of our most worn-out assets -- and over on the side here, we can see which areas are degrading faster in the red and slower in the green. Isn't that fantastic? This helps inform our future investments at the council. So let's double click on this and drill into 1 of our most degraded assets, this road here. Here, we can see the change in the assets health over time. You can see it going up and down, up and down and -- or something that has happened at the end here. So what we can do with this is even start to look at that trend analysis. And we can see that it's suggesting that it probably should be renewed in about 2026. So I keep note of that. We can then use this data to drill even further into our strategic asset modeling product and we can get a view of our capital spend and how much maintenance time we'll really need to spend on that asset over its life. You can see here if we did actually renew that asset in 2026, shown by the green graph, the wear and tear on that asset in the red goes from high, right down to zero and then slowly back up. Geez, I feel like a weatherman up here. So from these analyses, we can get a really good understanding of our whole council's depreciations over its life and into the future. So we used this modeling to go back to council this year to ask for an extra $2 million due to that flooding damage over all of our assets. Our true goal here is to keep our city's assets from getting too worn out. but also avoid overspending on asset maintenance that we don't really need. So we needed that a little bit of a funding boost to keep it all on track. Like many councils of our size, our assets like, bridges, roads, and even trees are worth billions. And TechnologyOne helps us save money on all this maintenance and keep track of it all. This is crucial because our city budget is tight, and we have to spend your public money wisely. Now this last dashboard over here with a map. Oh, This is -- thank you, Alex. This dashboard here. Last one, I promise, is where we -- a breakdown of where we spend capital in our city. The colors on the map here really make it easy to see where we're spending the most like in this ward in here and where we're spending the least over here. Plus, I can drill down to see how much we spend on different suburbs using the filters or on different projects or things that we own. We can even click on the pie graph there to filter the whole dashboard. So I can see here that we spent $12 million on renewal projects last year alone. But that's enough dashboards for me today. It's time for Smoko. Does anyone want a pie? No? All right. Well, I'll hand you back to Poppy. Thank you.

Thanks, Harry. Some really valuable insights there. Now as you can imagine, at council, it's not all about managing assets. The local government sector is large and diverse, and there are many different SLAs and KPIs that we need to be across and all the necessary information needs to be concise and easily accessible. That's why the council on a page dashboard is crucial, not only for me, but for my management teams. Now let's have a little look at it in more detail. Here, we can see our capital expenditure, which is what Harry was showing us earlier, then we've got our operating expenditure. So you can see our operating expenditure versus budget. And we can see this at a cost center level as well as being able to delve into in more detail. If I was a fleet manager, I can see all of the necessary data right here. It's also possible for us to see our revenue for the next financial year. And as you can see in this graph here, it's currently sitting around $130 million for the year, with rates in annual charges being the largest contributor of $89 million. Perfect. So now it's time for us to meet, our revenue manager, Henry, so that we can finalize our rates for the next financial year, which is going to be presented at our next council meeting.

Thanks, Poppy. As Poppy has highlighted, rates is one of councils main income streams. But for most councils, this can be a really painful process. I'm sure Michael would agree. But we've made it super simple in OneCouncil solution. So let me take you through the rates that I've just run -- so you can see that it's an easy step-by-step process to start you up on the top and works its way down. So you always know exactly where you are within the process itself. And we can also see the $86 million that was generated as part of this rate line as well. So nice and easy.

Thanks, Henry. And I can see the rate notices are being sent automatically out of the system.

That's right. So within a single function, we're able to run the rates, review the rates and e-mail them out to the property owners as well.

Great. Well, I'm really happy with what it is showing. Can we please have a quick chat about the flood management for the next financial year?

Of course. So let's have a look at the rates modeling. The functionality that we just saw within rates billing has also carried across to our rates modeling function. So this is truly what sets TechnologyOne apart from other competitors. Rather than having to extract our data out of the system and model the rates charges across multiple strategies using different formulas, we're able to do that directly within a solution without impacting our data. So let me show you through the rates model that I've just created. And we're just going to do a search for our flood levy here. So what we can see here is that this flood levy applies to 3,000 properties at $500 each, now we did hear from Harry that we need an additional $2 million to cover the additional investment needed for this year. So we can simply select that levy, do a goal seek revenue of $2 million and hit apply. And the system will now recalculate that, and we can see that our properties will be charged $642 each next year. So the last thing that we need to do is just approve that flood levy and will be ready to go.

Thanks, Henry. That's a really big increase. I'm sure given the severity of the flood last year, the community is going to be expecting this. I'm really happy with what it's showing and I'm sure it's going to pass the vote. How much time do you think you and your team are going to need to get programmed in for the next prompt of the meeting?

So it's all ready to go. So that's the beauty of having it all within a OneCouncil solution. We're able to just apply that to all the necessary properties straightaway.

Great. Thank you. I really appreciate your work with this. I know it's a complex business area.