Technology One : Annual Report to shareholders

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Annual onlyReport

For usepersonal

UP

43%

only	FY17	FY18	FY19	FY20	FY21
	$50.7M	$70.4M	$101.7M	$134.6M	$192.3M
use		SaaS Annual Recurring Revenue
				UP
personal					19%
$231.1M	$221M	$241.8M	$269.8M	$293.6M
	FY17	FY18	FY19	FY20	FY21
	$58M	$50.8M	$76.4M	$82.5M	$97.8M
		Reported Profit Before Tax
					UP
					9%
	FY17	FY18	FY19	FY20	FY21
For	Revenue from SaaS & Continuing Business
				31%

FY17	FY18	FY19	FY20	FY21
21%	22%	27%	28%	31%
	Profit	Before	Tax margin

These graphs should be read in conjunction with the

Financial highlights table on p.13

SaaS Annual Recurring Revenue up 43%

Profit Before Tax up 19%

Revenue from SaaS & Continuing Business

up 9%

Profit Before Tax margin 31%

For personal use only

Transforming business, making life simple

What's inside

Our History	7
At a glance	8
Financial highlights	13
Letter to shareholders	15
Global SaaS ERP solution	23
Our strategy	29
Our growth	35
Our operations	39
Our people	53
TechnologyOne Foundation	67
Financial statements	73
	Directors' report	75
	Corporate governance statement	107
	Voluntary Tax Transparency Report	116
	Financial statements	118
	Directors' declaration	146
	Auditor's independence declaration	147
	Auditor's report	148
	Shareholder information	153
	Corporate directory	154
	Corporate calendar	155

At a Glance

Transforming business, making life simple 5

Our History

1987

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Adrian Di Marco founded TechnologyOne in a demountable office at a hide processing plant in an industrial suburb of Brisbane. We were one of the first tech start ups in Australia. Back then, there was no venture capital or private equity, so one of Adrian's previous customers, the Mactaggart Family, provided the funding.

The idea was to build a new generation of software where the source code did not need to be customised for each customer, which was then the common practice. The software could be configured for each customer and the configuration sat outside the software. Because all customers used the same software we could then ship new releases every year, with new features and functionality.

1991

TechnologyOne released its first product, called FinanceOne, using the Oracle relational database technology (RDBMS).

1995

TechnologyOne software was voted No 1 Software for Financial Management and Accounting by a survey of 3000 CFOs by MIS magazine. TechnologyOne repeated this win, three years in a row. TechnologyOne broke away from the industry "reseller model" and adopted our unique Power of One model, taking responsibility to build, market, sell, implement and support its software.

1998

TechnologyOne broke away from the approach taken by global ERP vendors like Oracle and SAP of focusing on all markets, and focused on 6 vertical markets: Education, Local Government, Government, Health & Community Services, Asset & Project Intensive & Corporate

• Financial Services. This allowed us to build deep functionality out of the box for these markets, to create a significant competitive advantage.

2002

TechnologyOne acquired Proclaim Pty Ltd, for

its Property & Rating product extending TechnologyOne's Local Government enterprise solution.

2012

With the emergence of the cloud, TechnologyOne became an early adopter of the cloud for enterprise software, re-architecting our ERP system. We deliver a multi-tenanted global ERP SaaS system, providing huge economies of scale enabling us to take full responsibility for our customers - building, implementing and running our software for them. Our customers are able to easily and seamlessly move from on premise to cloud.

2015

TechnologyOne makes three acquisitions: ICON Software, Digital Mapping Solutions and Jeff Roorda & Associates. The acquisitions broadened the breadth and depth of TechnologyOne's enterprise solutions, adding planning, spatial and strategic asset management functionality to our suite of products for Local Government and Higher Education markets.

In the same year, Adrian Di Marco was listed on SmartCompany's top 10 most influential people in the Australian IT industry, inducted into the Pearcey Hall of Fame, and named as 2015's top 10 CEOs by AFR Boss magazine.

2021

TechnologyOne made its first international acquisition, Scientia, as part of our strategic focus to deliver the deepest functionality for higher education becoming the only ERP provider in the world to offer this solution to the higher education market, as part of a full enterprise suite.

1988

1993

1996

1999

2003

2014

2017

For

Adrian knew that using technology to get a competitive advantage would be the number one factor in our success, so he named the company TechnologyOne. TechnologyOne was one of the earliest developers in the world to use relational database technology.

TechnologyOne made the decision to shift away from Oracle's RDBMS, to become database-independent. That same year, TechnologyOne pivoted from being Best

of Breed to become one of the first ERP vendors. TechnologyOne's enterprise vision became a key differentiator, allowing it to deliver a single, integrated enterprise solution, built on a single modern platform, with a consistent look and feel.

With the rise of PCs, TechnologyOne became an early adopter of PCs for enterprise systems, rebuilding its suite of products in a new and emerging technology called client/server. That same year, FinanceOne for Windows was released.

TechnologyOne floated on the Australian Securities Exchange (ASX) in 1999. TechnologyOne was one of the first IT companies to become publicly listed and one of the most successful listings in 1999.

With the emergence of the internet, TechnlogyOne became an early adopter, rebuilding our entire ERP system for the internet. TechnologyOne Ci (Connected Intelligence), was released.

2006

TechnologyOne released preconfigured solutions for each of our key vertical markets dramatically reducing the time, cost and risks associated with implementing its ERP software.

TechnologyOne SaaS was released. With the emergence of mobile devices, TechnologyOne rebuilt our ERP systems to provide any device, anywhere and any time access. 100% of TechnologyOne ERP functionality is available across all devices including mobile phones. The new product Ci Anywhere was released in 2014.

In the same year, TechnologyOne hit $1 billion market capitalisation and entered the ASX 200 Index.

TechnologyOne launched the TechnologyOne Foundation, committing to raise 500,000 children and their families out of poverty. TechnologyOne also commited to the 1% Pledge - committing 1% of profit, staff time and products to its Foundation.

In the years since TechnologyOne was formed, the IT industry has changed dramatically. We have rebuilt the company and our products with each new generation of technology, taking us through four generations of product.

Our success is in making life simple for our customers.

Our History

Transforming business, making life simple 7

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At a glance

At a Glance

Transforming business, making life simple 9