Technology One Stock

Thank you for standing by, and welcome to the Technology One FY '26 Half Year Results Presentation. [Operator Instructions]

I would now like to hand the conference over to Mr. Edward Chung, CEO. Please go ahead.

Good day, everyone, and thank you for the introduction. This morning, we've got Stuart MacDonald, our COO; and Cale Bennett, our CFO, presenting directly with me, but from various different parts of our business. Welcome to our 2026 half year results presentation. These materials were lodged with the ASX this morning. The DNA of our business is that we set ambitious goals and we deliver, whether that's moving 1,200 customers from on-premise to SaaS without missing a beat for our customers or our growth or whether that's entering the U.K. passing our expectations. All of this also gives us confidence in the pipeline, and we don't guide up unless we can see it day in, day out, year in, year out. That you can see behind us, I'm proud to present the following results. We're generally conservative by nature. For those who know us, we talk about heartbeats and rhythms heartbeat and rhythm, increasing our guidance range from 10% to 15% to 12% to 16% in FY '24 to 13% to 17% in FY also upgraded our profit guidance range because of the visibility and momentum in the business, which gave me confidence to guide up early. We reaffirm our of 18% to 20%, again, targeting the top end of the range. PBT margin, an expansion of 2 points from 30% to 32% and full year -- our continuing strong results will be driven by the investments we're making today, such as our AI strategy, including Plus and Guide. There are no carve-outs. Our guidance is fully included H1 has come in exactly where we said it would. ARR growth of 17%, squarely within our 16% to 18% full year guidance range with strong momentum heading into H2 and beyond. PBT growth in the high single digits, and that's in line with the phasing we flagged at our AGM as has landed exactly on plan with no surprises. Now taken together, the half delivered exactly what we committed to at the AGM, and we remain confident in delivering the upgraded and full year free cash flow equal to net profit after tax. We have clear visibility and confidence through H2, and we will deliver the full year step-up as we flagged. -- into the underlying engine of the business, what we refer to the heartbeat of the business. This is our half 1 results on a constant currency basis as well as normalizing profit and profit before tax growth of 21% and margin improvement to 30%. On top of all of that, profit would have grown to $105 million consistent growth and the confidence for the future, as I've already highlighted. Over the past 38 years, we at Tech One have ridden the economic waves and because it was a simple way to deliver through that graphical user interface. The third generation leveraged the Internet because it was a simple way to connect our customers with their customers with one product all the way back in 1987, and we've built products or we've made numerous key IP acquisitions such as Property and Rating. Property and Rating runs government, also focused on health and community services, asset and project-intensive industries and corporate and financial services. This allowed us to build deep, deep functionality years of hard work in product localization in customer reference and scaling our business. The flywheel has turned in the U.K., and we are now the de facto partner in the U.K. or the hundreds of thousands of residents of a council, opening up a new and unserviced market for us. Now through the Power of One, we became the world's first SaaS ERP in 30 days, not for thousands of days like our competitors. Now this is our strategy in action, long-term investments in R&D by staying close in 1987 to 20 products today. Each product has over 20 modules. That's over 600 modules in total. And we now have our AI strategy where we've added -- they provide software that might help you automate your finance processes or human resource processes. It's very generic functionality, and it doesn't include the deep market specifically for that function. But then you have to piece it together with sticky tape and chew income, and it doesn't really work in a SaaS world, and it's even worse in an AI world. model. We've followed the past less traveled, and we've carved out vertical niches and specialty that results in strong consistent ARR growth 10% to 15%, which is now carefully and slowly increased to 18% to 20%, which I've discussed. We call it strategy, some in the investment community call it a moat. -- serve highly regulated industries. We've got the highest level of cybersecurity certification. We serve some secret agencies, but at highest level, it's built into all of our software. Our world's first SaaS plus model with fast go-lives, removing the need for that traditional long complex and expensive consulting and 99-plus percent customer retention and 38 years of consistent execution. Okay. Let me remind you about pricing. The bear case is on the left of this slide, and it's a real bear case for many companies. AI agents replace knowledge workers, customers need fewer seats, vendors lose revenue per user. Multiples rerate downwards. We sell ratable properties, which scales with ratable numbers, not headcount. So as communities grow, we grow with them. We sell on student numbers. So as you enroll more students -- you can see it's very exciting. Stuart is going to take you through this in further details, and I invite you all to a product demonstration hosted by Chandon, our CTO this Friday. agents do more work. Remember agents faster, more complete, higher quality and cheaper for our customers, we grow with that, too. Another new opportunity -- but we've introduced a new innovation to take friction away for our customers, and that's advertising revenue built in and further advertising revenue per seat world, every AI agent that replaces a human is revenue dilution. In our world, every AI agent that does work for a customer is a revenue event. in-product AI, new revenue from our resident and student conversations with interactions in guide and new advertising revenue from Guide. We've transformation right now, and these investments enable us to continue to double in size every 5 years. Over to Cale [ and our Hackpace ], who will now take us through the financials for the first half of the year.

Thanks, Ed. Once again, we are incredibly proud of the results we have delivered in the first half of FY '26. The strength of our portfolio business came to the fore this period with local government in Australia, a standout performer in the first half. A total of $87 million in ARR was added over the past 12 months, resulting in ARR growth of 17%. Typically, ARR growth is always stronger in the second half, so the strong performance in first half gives us great confidence in our path to the full year. U.K. ARR growth came in at $2 million with recurring revenue now representing 93% of total income, highlighting a 25% uplift in the quality of our revenue of high single-digit growth to deliver 9% PBT growth to $89.1 million. With such a strong result and great confidence in our future, '24. If we view this result on a constant currency basis, our first half of '26 would have been a record half for any period over our FY '26, we delivered strong profit and ARR growth, meeting guidance. We made the commitment in previous halves to keep our rolling 12-month Rule of 40 above 40%. With another strong half of ARR growth, up 17% and a free cash flow margin of 38%, we have again delivered an outstanding SaaS and recurring revenue grew 13% to $299.2 million in the first half of '26. As mentioned, SaaS and recurring revenue growth at 13% decrease in revenue as expected as we work through the backlog of legacy contracts. This revenue is primarily driven by implementations not sold at SaaS+ such as government work sold on the old framework prior to its updating to accommodate SaaS+. Within our total expenses are net variable costs of $42.7 million, an increase of 5% on the PCP. This increase was driven by an increase in our SaaS platform costs as customers leverage more of our products. Our operating costs are up 13% to $190.9 million during the half. These are primarily people-based -- we did not have a comparative marketing event. And as such, to get a like-for-like picture of the cadence of the business, it's important to factor that in when looking at the increased cost base. The effective tax rate for the half was 25%, which is where we expect it to land by FY '26. Turning to the balance sheet. to cash collections due to the annual billing alignment with contract anniversary dates. Capitalized development has increased by $15 million in the half, which is tax asset attributable to share-based payments given the fall in our share price. Our deferred revenue has fallen $42.3 million in first half '26 was a big one for our R&D team. In the first half of FY '26, we invested 26% of revenue or $84.1 million in R&D with -- going forward, we expect to target investment in R&D in the 20% to 25% of revenue range, which we continue to believe is the optimal investment level. of our cash flow due to the annual contract anniversary date cycle. You will recall in first half '25, we benefited from pulling forward creditors into the $6 million or 16% to $245.5 million over the past 12 months. We are incredibly proud of our results in the first half of '26. Accordingly, our Board has determined an interim dividend of $0.08 per share franked at 75%. This represents a record interim dividend with increased franking. We will maintain this franking level going forward. While the interim dividend is up 21%, this only represents a payout ratio of clearly showing our confidence for the future growth in profitability. In summary, our past execution has afforded us a very strong and [indiscernible].

Thanks, Cale. As announced at our Showcase kickoff event in October last year, 26 marked a watershed moment for our AI initiatives and rollout strategy. It's important to note that we've been leveraging AI across these capabilities. But before I go any further, I thought I would take a moment and talk about Showcase and bringing up to speed about the events that have now all been completed. with Plus and in-product functionality and guide forming the centerpiece of the strategy. I would also like to highlight the resounding success of the event across every increasingly relevant for the verticals we serve. Most importantly, the pipeline generated from Showcase has significantly exceeded both historical opportunity. At the conclusion of the Melbourne Showcase event in October, we announced Plus, our Agentic AI solution for the ERP market. the boundaries we are prepared to push to better support our community. We also highlight to investors that Plus was designed to be a Trojan horse, a platform that would encourage customers to adopt more Technology One product in order to unlock the full capabilities of Plus, and we're already seeing the strategy play out. We also stated that Plus would achieve the fastest adoption rate of any product we have ever launched, and that prediction is proving to be correct. Although Plus was announced in October last year, it has only become generally available to customers in early April this year. Despite the 6-month wait, we're already seeing breaking Technology One adoption records with Plus, and we are excited to see how far this product will go. In classic Tech One fashion, we did not stop there with Plus. We pushed the boundary even further with the announcement of Guide at our U.K. showcase in February. For more than 6 years, we've been developing products designed to empower our customers' customer, whether it be students or ratepayers through what we call DXP or the digital experience platform. Our goal is to extend our reach beyond supporting only our customers' back office and instead empower our community and the communities they serve directly. As you've heard previously, our DXP LG product has been well received, and we've been running early adopter programs for -- we could have stop there and realized the guide using traditional and released guide with traditional consumption-based pricing models. commercialize this product. And as a result, we took the road less traveled. And in fact, road never traveled in the ERP market. We proposed delivering guide core values. We asked ourselves, if our customers are under pressure, how can we generally support their sector. That led us to the decision to share ad revenue -- with Guide for student scheduled for release in 2016 in August, we're already having universities compete to be the first institution globally to deploy a solution that not only empowers students but is generating new revenue streams. Historically, I've highlighted 3 significant wins during our results presentation. And today, I would like to begin with James Cook University. We've been proud partners with James Cook University since 1993 when we first -- when they first acquired our financials solution. Since then, they've been on a journey with us through major phases of technology evolution from on-premise client server all the way through to SaaS, while at the same time, adopting our student management solution. And over the past year, JCU conducted a comprehensive technology review and road map assessment focused on identifying their preferred strategic partner for the AI era. And as a result, I'm incredibly proud to share that James Cook University, a global leader in Great Barrier Reef and Coral reef resilience research with more than 1,700 team members and 21,000 students has fully embraced our AI strategy. Not only have they adopted Plus, but they've also acquired every product and module within our One Education suite to create a rich data lake so that Plus can leverage and help support the university's long-term strategic goals. Further, validating both the strength of our partnership and alignment of our innovation and strategic direction, JCU signed a 10-year agreement with Technology One. This is the perfect case study of partnership, innovation and the power of our vertical strategy, and it reinforces why we continue to grow and league now into what I believe is the fifth era of technology innovation. Townsville Council has been an on-premise customer for many years, and we're among a very small group who did not initially believe in our SaaS strategy. And in fact, they invested in building their own data center to continue to host solutions. However, once we informed them that we could no longer support on-premise customers and they would need to transition to SaaS, they commenced a 2-year evaluation program involving competitors such as Oracle and Infor and in fact, selected Oracle. Early in the Oracle implementation, they found that Oracle solution would not work, and I'm incredibly proud to say that during the first half, they not only returned to Technology One, they signed a 10-year agreement embracing SaaS and adopting full SaaS+ program as well as acquiring Plus. We also secured the University of Suffolk. Historically, the U.K. market only sees one student management RFP coming to market each year. And as we've highlighted previously, we have a strategic goal to capitalize on our unique position in the U.K. market as the only SaaS provider serving the education sector with both traditional ERP capabilities and mission-critical student management, curriculum and timetabling solutions. To secure Suffolk University as our seventh student management customer in the past 2.5 years, and the confidence customers are placing in our AI vision. SaaS+ is now embraced in everything we do. It defines us solutions have transitioned to SaaS+, and I'm pleased to report today that everything is SaaS+. And we've achieved this transition faster than expected, driven because it fundamentally disrupts traditional implementation models built around long drawn-out projects. Some even joke referring me as the Chairman of to consume additional products and drive greater operational efficiency. In the new world of AI, this also significantly increases the effectiveness and value digit growth. It is clear validation that our strategy is driving momentum. A 27% growth rate in local government is particularly significant and again validates that mission-critical SaaS solutions designed specifically for the verticals we serve are hitting the mark. Importantly, AI technology. Education also remains another significant pillar of growth with 15% and the opportunities such as AC for mission-critical solutions in our verticals in the U.K. and the enormous opportunity coming off of our U.K. showcase event. Our pipeline continues to full year results. We closely monitor NRR and churn. While NRR was 114, this was primarily impacted by foreign exchange movements, and we expect to return to our target range of 115 to 120 by the end of the financial year, notwithstanding any persistent strong Aussie dollar. Churn remains historically low at just 0.6, which is industry-leading and further validation of both our strategy and the critical long-term role we play with our customers. Ultimately, it all culminates in our ARR performance. Overall ARR and ARR per customer continues to grow strongly. And with our FY '26 guidance of $16 to -- the first half results clearly demonstrate we are on track. In closing, our results demonstrate that we are continuing to invest heavily in the future and push the boundaries of both what the market expects and what technology can deliver. From being the only SaaS provider across our verticals to deliver mission-critical capabilities such as student management, curriculum, timetabling and scheduling, property and rating, strategic asset management and so many more. We continue to differentiate ourselves through innovation and genuinely improving our customers' outcome. Combined with SaaS+, Plus, Guide and our broader AI strategy, our R&D team continuously take the road less traveled because they remain deeply connected to our customers and the industries we serve. We cannot be prouder of their direction they are taking Technology One, our industry, but most importantly, the customers every single day.

Thanks, Stuart. So to wrap up the results quite simply, our investments made in R&D, in AI, in Showcase, in SaaS+, they're delivering. We achieved our 17th consecutive half year record ARR, record revenue, record profit. Total ARR is up -- 17%, sorry, to $598 million. U.K. ARR is up 23% with a very strong pipeline for half 2, driven by our Showcase event in February this year. The flywheel is turning and profit before tax of $89.1 million, up 9% as flagged. These results enable us to continue our strong R&D investments for future growth, and that was $84.1 million, up 22% and a record interim dividend of $0.08 per share, up 30% we're on track to achieve our upgraded full year guidance. Turning to our long-term outlook. We've doubled in size every 5 years, and we're going to continue to do so. As I've done in the past, I'd like to walk you through the key mechanisms on how we achieve this consistently amazing outcome. We have a total addressable market of $13.5-plus billion, and it's growing. We have and will continue to deliver strong net revenue retention within that range of 115% to 120%. Now at 115% alone, we can continue to double in size every 5 years. We have significant white space in our existing customer base, and it continues to expand. And with that continuous investment in R&D, we released new products, features, modules 2 times every year, therefore, organically increasing the TAM. Now once we land a customer, there are many, many new products and modules that we can provide to those customers. Our pricing model is tied to a true partnership with our customers. As they grow, we grow. In summary, we benefit from population growth and our contracts include CPI. Now SaaS+ is a game changer. It was designed to differentiate us and to remove the long, complex, risky, expensive implementations, but we benefit from a 40% uplift in our price book, and we simplify our business again by removing one-off consulting revenue and replace it with high-quality recurring revenue. And leveraging AI to achieve our ERP in 30 days, you'll see significant margin improvement. Now we continue to target acquisitions in that very disciplined way that adds new IP to our business, such as Cseloop. And the leverage we're delivering in our business provides us with significant headroom for inorganic growth. We have a great vision and a platform for the future of ERP. Now as we enter the fifth generation, the AI generation, our total addressable market is exponentially turbocharged with the addition of Plus and Guide as our customers take on more and more interactions and conversation bundles. They take on ad revenue, and I'm sure many, many more will emerge. This AI transaction-driven pricing will drive additional ARR and revenue from each customer and from the residents and the students of our customers. We say exponential because it's massive. We just don't know how big it can be yet. From the initial conversations and feedback we're receiving from our customers, the usage of conversations and interactions is significantly exceeding our expectations. Now all of this just increases the depth of our moat and significantly increases the opportunity ahead of us, underpinning our confidence that we'll achieve our next big goal of $1 billion-plus ARR by FY '30. And here's a summary of what that AI opportunity does for our business. One, our AI pricing model to which I've already spoken, is tied to ratables to students enrolled and our interactions and conversations. Two, our AI enhancements provide better outcomes and value to our customers and their customers, Plus turns the ERP from thousands of screens into one single conversation. Thirdly, the data advantage. We've got 38 years of vertical workflow data, compliance with laws and regulations, best practice, tacet approvals. AI is only as smart as the data it leans on. Foundation models can't replicate this. They might have the Internet, but we've got the operating record of public sector in Australia, New Zealand and the U.K. Four, Plus is a Trojan horse. As customers use Plus, they realize that more products represents more value for them and their customers. and five, the network effect. Guide extends plus from staff to end users. With Guide, we're inside every conversation that a council has with a resident and every conversation that a union has with a student. The customer service area expands by orders of magnitude. The moat was wide before with AI, it gets wider and it gets deeper. Our people, they have a deep connection with our mission because they, their parents, their brothers and sisters, their family, we all live, work and play in the communities we serve. They live and breathe the Tech One way. They create and deliver the mission-critical products and solutions that power our customers. None of these results would be possible without the talented and committed people who make up Technology One. Our people are on the role, they've got energy and momentum, and we would like to thank every member of Tech One across the globe. firmly on the path to achieve $1 billion plus ARR by FY '30 from our current base of $598 million. We will continue to invest for the long term in R&D to build platforms for growth and the economies of scale from our global SaaS ERP solution will also drive continued profit before tax margin expansion through to 35% and beyond. We'll now hand over to the operator for questions.

[Operator Instructions] Your first question today from the phone comes from Lucy Huang from UBS.

I'll go through maybe if I start off with the first one. Just interested in [indiscernible] around flat. I think in February, you talked about 22 customers signing up. Any color as to what that number or penetration rate looks like today. And then you also make some comments around kind of conversations with customers suggesting usage is exceeding expectations. Any color you can shed on how a customer is in Plus. Are we seeing a large number of exceeding the usage?

Thanks, Lucy. There's 2 parts. I'll answer the first part and then hand to Stuart. In terms of customer take-up, it is firmly on track to be the fastest product, even though it's more than a product ever delivered by Tech One. We're just holding our powder dry to say some good news for the full year also. But rest assured, it is getting into the majority of the large transactions we're doing with our customers. Stuart talked about JCU, you used JCU or any customer you want to talk about sure. But the second part of the question is that how is that exceeding our expectations to take up .

Yes, it's a really good question. We should remember everybody that we released it with 26, and that's only been available with plus for about 3.5, 4 weeks now. So it's very early days. And so a lot of the customers are still in test, not in production with it. But the feedback related to their modeling is very impressive far exceeds our modeling related to what we expected the usage to be. And if we talk about JCU, it's orders of magnitude greater than we ever expected. It's more than 10x more than we modeled that they would use. So we don't really know yet because it's still early days, but we'll be able to give you more color at the full year. .

And maybe if I can just add a touch of additional color is that -- we don't really want to talk about the ARR of the individual customer like JCU, but it's quite large, as you can imagine. It's a large -- or medium university, but student management and units are big, but it's got every product and module. -- when we modeled the interaction and conversation uptake, it was aggressive in our minds or strong, but it is 10x more than 10x more. And so the could double in that single customer base. And so we don't really know yet, Lucy, but we do know it's exponential, and it's way more than we had naturally modeled. .

I can give you 1 case study, if you want. -- low to Yes. Okay. So when JCU bought everything, they literally bought everything. It was a new product we just announced called Invoice IQ and its ability to scan your invoices and it's -- there's a competitor product that we're taking out to do that work. When we modeled it, we modeled that they would do about 10,000 invoices through the process, they will do more than 100,000 and again, that's seen as an interaction as well. So when we model things, we're just seeing so much more usage coming out of this functionality than we ever expected, and we're just excited to see where it goes. And that's just 1 very simple case study. .

[indiscernible] half. Are you guys able to split or give us a rough idea as to how much came through from SaaS+ versus Plus?

We don't really break that out because everything is SaaS+ and just Plus is just another product that we put through the system. So we don't break that out at all. .

Yes. Lucy, if you like, we've got what we call a very diversified model. You got multiple products, multiple regions, multiple verticals. And to be honest, we're going to fire better in some halves and years in summer fire even stronger in others. And so we use that diversification of revenue streams to ensure that we can hit that 18% compound ARR growth year in, year out. .

Again, just to reiterate what I said also within the results, everything we sell now in SaaS plus. So we don't segment anything out that's not a SaaS plus proposal. .

Understood. And then maybe just the last one. Just interested in guide and the advertising revenue model, that you're rolling out. How should we think about the incremental cost associated with this because obviously, it's a different way that you're used to charging. Are you expecting to have to build a team of salespeople to attract those ad dollars? I'm just kind of keen to hear how to push the growth in that revenue .

Yes. There's 2 parts to that question. I might just race for incremental costs and then Stuart to the second part of the question. .

Yes, I guess the guide product is very early in its evolution. So we won't get too specific on costs other than to say that this is a fairly innovative approach to generating revenue for Tech One. So -- it is -- will be incremental revenue and incremental profit for us. But exactly how that's going to fall through yet, we're yet to see.

The customer excitement related to it far exceeds our expectation yet again. We've got at least 3 customers that are trying to be the first ones to take it on board gets released in '26, which will be sometime in August related to the sales team, it's the same sales team. So we're verticalized in the way we sell. So we've got an education sales team that's selling that product. and we've been enabling them for the last 6 months ready to sell the product.

We will also go through a kind of a crawl, walk, run phase related to the ad revenue side as we're early into this phase as well. been talking to a lot of other providers of ad revenue to see how they grew into it to make sure that we do it the right way. But -- it's very early days, but very exciting. And it's got a real flywheel effect because the customer is servicing its customer better, so the students are getting more information, therefore, decreasing the cost for call centers and improving the relationship between a university and a student. The university is solving a problem differentiating its other universities. They're getting ad revenue from it. And so that flywheel, we benefit from, very, very exciting.

Your next question comes from Andrew Gillies from Macquarie.

Look, just following on from Lucy's questions. I appreciate the ARR tailwinds are really strong, but how should we think about kind of the dynamic of sort of existing customer versus new logo growth in contributing this ARR story, particularly calling out sort of U.K. growth where new sales was a little bit softer. Appreciate the commentary on the pipeline. But can you maybe unpack that a little bit, just help me on the drivers as we go forward. .

Yes, sure. I'll talk about the new versus existing and then maybe hand over to Stuart for the half 1 at SKU for the U.K. We run our business basically focused on really 2 metrics, PBT growth, number one, and then closely followed by ARR growth. And for us, total -- it doesn't really matter if it's new or existing, but I'll get into the details about that in a second. And we'd love to sell as much ARR in the first half versus the second, but the deal sort of land with a land and over many, many, many years, they sort of second half skewed, and I'll get this Stuart for the U.K. in a minute.

Now when you look at new versus existing, if our total ARR growth is 17% at the half, before the ForEx impact. And then NRR was -- sorry, including the ForEx impact. Then 114 for existing, including the Frac, the new logo is 3%. It's just 1 mine is the other. Now since the dawn of time, that new logo growth has been about the same. It's sort of hard to explain 5 new logos in that same percentage range. but we're very strict on the definition.

So if you look at Australia, local government, for example, you have a lot of the logos, but there's a bucket load of white space and runway to go. So everything goes into typically or most of it goes to NRR. And then if you go to higher education, we bought Cientia back in '21, I think, and it had pretty much every logo in higher education in the U.K. So strictly speaking, that is all NRR. And that's how we present that as well.

So there's a lot of nuance in that conversation. Our focus is on the entire market. that 18% day in, day out. So 1 of the DNA parts or the hallmarks at Tech One is we don't want to shoot the lights out 1 year and have a really bad year the next year. It's just strong, consistent growth.

And our commitment from a PBT point of view is that 18% to 20% at the [indiscernible] consistently and ARR growth, 16 to 18 at the top end consistently. So hopefully, that just paints the picture Andrew. Firstly, of the IRR, whether it's new or existing. And then Stuart, there was -- you want to color in the sort of what the dynamics of the year for U.K.

Yes, sure. One piece also put together as well, somebody has asked me, how did we get such growth in attendance to showcase -- we've always set showcase up as a prospecting event, but historically, it's been more of our customers coming and looking at new product component across had far more prospecting attendance than we've ever had before. And that's just a validation of our strategy and our brand in the regions we serve. So you'll see that play through.

Related to the U.K., a strong first half, a great foundation for the second half. The pipeline is far exceeding what we expected it to have at this time of year. We've got some very healthy exciting deals to talk through at the full year. and very where we're going, not only next year, but going forward as well. We are the de facto provider now for local government and higher education in the U.K. and it's putting us in a very strong position.

Perfect. And then just a quick follow-up. If I look at kind of that pipeline opportunity, is that kind of both U.K. and sort of ANZ? Have you -- are you willing to kind of provide some color on the split there? Or just think about it as kind of that $9 million spend or the $7.4 million on the showcase costs.

Yes. It's pretty even, to be honest, across the board. I mean the U.K. is far more new just because it's the time we've had there. But across the board, that growth of that pipeline is pretty even on both sides. So I wouldn't really put any more to it. .

Perfect. And then just 1 last one on the products. like, obviously, the shift to a consumption-based revenue model is a bit of a change for customers. Like is there any kind of education required with that? Like how do you balance the desire to grow transaction or consumption-based revenues with the potential sticker shocker customers?

Yes, it's like every generation, to be honest, no was similar in cloud. Our first approach is that in the [indiscernible], it's bloody complex with tokens. I don't know if you or your friends have played with it, and I've personally played with and you've got millions of tokens, which means nothing to me, to be honest. So at the first level, we've simplified it by just having you ask a question and you get an answer. That's a conversation or you press the button in product and you get an answer that's an interaction. So we've already, one taken away the complexity from tokens, which means nothing to anyone. Two, when you buy Plus or in product A, you got a whole lot of bundles and then you can buy on top. And of course, it's going to take location.

But Stuart, do you want to add more to that? .

Yes. I think the exciting part of this whole phase is what they're realizing there's the value they get from AI. And so we have to really enable them and educate and related to functionality. But once we've done that and if anybody came to showcases, they would have seen how we showed that we were giving time back related to that functionality, it actually pays for itself because they can do the mental math of this interaction is going to cost me $0.30 compared to spending half a day to do the work. And so we don't have to really position anymore.

We just have to inform them of the functionality and then they adopt quickly because they can see the efficiencies they're getting. So we're really breaking down the old way of thinking, which is, "I need to do a function. Now I need to figure out to do functions faster, and that's what AI gives them, and that's what we're getting to return from."

So don't see. I've not had any pushback. In fact, almost the opposite from our customer base, and they're pushing us to get more and more functionality into AI and leveraging those interactions.

Do you want to talk about the research we've done for local government customer service call centers and the new difference?

Sure. So if I take the U.K. as a case study, and we're working with the other product we really haven't talked much about, which is guide for LG as we released guide for LG in 27. If I look at a counsel, a decent-sized council in the U.K., they spend about GBP 2.80 for every call that comes through to their call center. And only 85% of those calls get answered and only about 60% of those calls ever get resolved. We can actually do the vast majority of that work for a $0.30 or [ 15th pent ] cost. And so we can do all of their calls and actually push them through at an absolute fraction of what they're spending right now so they can take that money and put it to more meaningful things.

And once they start to understand that orders of magnitude of saving and fishing, but also NPS results related to their students or right payers, everything just kind of takes care of itself. It becomes logical. And that's what's making that flywheel turn so quickly.

Your next question comes from Paul Mason from E&P.

Just a couple from me. I just wanted to check, with the currency headwind, was that all on the U.K. So what would your ARR be $59 million, if not for currency? Or is there some New Zealand in that as well?

Thanks for your question, Paul. No, it does include New Zealand. And if you're a close watch of the kiwi dollar, it has depreciated quite significantly over the half as well.

Yes. Okay. Great. And so 2 other ones more on business. Just in terms of the rollout of Plus, I was just wondering if you could make some more specific comments on the level of upsell that's come from it with the customers that have taken it. Like you said most major deals are taking plus now, but like are they are most major deals taking plus and then something else because of Plus as well how is [indiscernible].

I don't know the exact numbers, but some of the -- I would say probably about 25% to 35% of the plus deals are plus stand-alone. Almost everything else has a pull-through of some type maybe not a JCU level, but some type of taking advantage and looking at other products that they want to take out and bring our product in, so plus can actually evaluate that information. So -- it's definitely the majority of the deals are bringing other products through. .

And I think on top of that, if you think longer term, once they get plus and they start using it and see the value and see the interactions, the surfacing insights they never thought about the lights will turn on. It's no doubt, it's a Trojan Horse, not just for now, but for the [indiscernible]. I'll take me.....

And we can see it here. If you look at and what we're doing we can see the usage here of what we're doing. We're an early adopter. And the amount of information it's providing everybody is just fascinating. Absolutely fatalities. .

Great. Just the last 1 for me would be just on the consulting revenues. You guys called out that the legacy stuff is falling -- but the overall numbers looking like they're a bit steadier, I believe, because of your application managed services business. Could you maybe like just give us a bit of an overview of like how that line is going to go through time? Should we see the absolute consulting revenues decline? Or is that just going to change nature to this more like ongoing consulting instead of like the implementation consulting as time progresses.

Yes. So basically, you're right. We will see that migrate from that line from traditional consulting, which is down about $3 million versus the PCP. While AMS, which is our application managed services will go up. It -- well, I mean, aspirationally, we'd like all of our customers to have an AMS program and -- and so expecting continued growth in AMS and traditional consulting will, over the next couple of years, really become a fairly small number, we'd expect.

Is there much margin difference between the 2? Or are they pretty similar in terms of how the economics work.

They're fairly similar. They're quite different businesses, but they're not materially different margins.

Your next question comes from Josh Kannourakis from Barrenjoey.

A couple of quick ones. Firstly, just with the route -- there's been a lot of discussion a few things that have come out over the last few weeks around sovereign AI and procurement and government. Have you guys seen any noticeable trends? And how do you view that as either opportunity or risk to your business and how you're positioning for that going forward? .

Yes. There's no doubt, it's very topical tech sovereignty and particular AI sovereignty. And we are a firm believer of buying local to support the local ecosystem of tech companies. We are a firm believer of data sovereignty and for lack of a better word, AI sovereignty as well. And I know that the ministers, whether it's air or Chilton are out there beating the drum and in fact, myself and a few colleagues will be down there next week. .

Josh, pushing that barrel, not only for Tech One, but for the industry at large. And so expect Elbow's push for team Australia and for sovereignty to perhaps have some tailwinds for us. It's a long hard slog as you know, with government policy, but it's heading in the right direction, and we're fully supportive of it.

Okay. Great. And just obviously, you've signed a couple. I know James Cook obviously a long-term customer counting back to you guys. 10-year deals, obviously feel pretty significant -- just keen to understand, obviously, there's a lot of change going forward. But when you at your pipeline on a go-forward basis? Has there been any sort of change to the time frame or terms? Obviously, I know you've got some 5 years, some 10, but I'm interested to know whether that's a trend or if that's just specific to that [indiscernible].

You're right. I think if there's a standard, not that there is. But if there's a standard, it's probably a 5-year deal. But we're seeing that customers really want to take up AI and take the advantage of them and do the longer deals. Is there anything you want to add to that, Stuart? .

Yes. No, we always position with the 5-year because it's the way that SaaS plus was designed is a 5-year agreement. But we're seeing customers that really want to just come on a journey with us -- and so we take advantage of it as a partnership. So we're asking the same amount, but we've got more customers asking for longer term, and that's just a validation of our strategy. .

Got it. And so just on that, I mean, I noticed as well the capitalized commission costs were obviously a bit higher. Is that just because you've signed those -- you've obviously signed a couple of very long-term agreements, which I magic come with some healthy commissions .

It's probably not so much the term, to be honest, because they paid for the first year. There's a little bit of nuance in that. But we did sign quite a lot of deals in that.

Yes, it was a good sales half. Salespeople like to get paid.

And they deserve to be. I'll probably -- Josh, I might just add a bit to that. It might be lost on people. But if you think about a salesperson's commission, it is on the value of the deal they do for the first year, generally speaking. And they don't have the ForEx impact. So if you -- that slide that's on -- I don't know, Jio, whatever that number that slide is. It's really important because strip away or bring back to constant currency, that's meaning less to the customer account manager, but it shows they actually had the biggest half ever. And so that gives us -- that's 1 of the things that gives us a tailwind. One of the things that gives us confidence. And of course, we can see a very clear pipeline heading into half 2. But I think that message up until now, it might have been a little bit lost but they've done really well. Yes. Slide 25.

Your next question comes from Roger Samuel from Jefferies Australia.

I've got a couple of questions. First one, could you outline your confidence in hitting the top end of the guidance range, which is for 18% ARR growth in FY '26, given that you reported 17% in the first half whilst your net retention rate has come down to 114%. Just to try to understand how much heavy lifting do you need to do in the second half? And maybe just to clarify, those new contracts that you mentioned slide pack, the JCU, the tons stuff. Did they land in the first half or the second half? .

Yes. I'll start with that 1 first. Roger, they definitely landed in the first half. It's a good question you ask. I'm going back to Slide 25, if I can find it. Okay. So the whole point of Slide 25, although start is to say, if we didn't have ForEx impact, lower $6 million, we would have owned $50 million in the first half, which is the highest, by far, which means half-on-half, the growth in second half not as much. So we have huge momentum going into the half, delivered solid results.

And I wouldn't say we're coasting, but we -- but there's -- the team have done such a great job that push for the second half, 1 is easier than it's been in a very, very long time. And two, we've got that huge momentum coming off the back of showcase and visibility in the pipeline as well as the excitement for Plus. And every time we show our customers plus or get presales people in front of them, it just drags the deal forward because the buying C level sees the value in it. So is the value in that interactional conversation such as the [ 23p ] compared to GBP 2.38, it's so significant Raj, that we are firmly committed. We've got huge visibility and the pipeline is so strong. .

Yes. I would also kind of look at it this way. There's more conversation inside the business now related to FY '27 and there is to finish FY '26. So we're looking that far ahead because of the confidence we have the pull-through from showcase, the AI strategy, what's happening in the regions. It's really an FY '27 and forward conversation, and that's the excitement we have. .

Got it. Okay. My second question is on margins. So SaaS so far, had an impact on margins and yet you're still guiding to margin expansion in FY '26. Is there any cost efficiency program that you're doing that drives that margin expansion. And also on SaaS+, when would you expect that margin dilution yet to fall away. .

Yes, I might start and then hand over to Carl. I think if you lifted the hood in Tech One, there's always cost out. We're always focused on the efficiency of the business. It's probably why we're in the top quartile globally of companies in the Rule of 40. So it's just part of the DNA we keep pushing. But get efficiencies in our business. So you're seeing a whole lot of things play out. The DNA of the business to continue to focus on efficiencies, the use of AI inside our own business as well as in the products for our customers, and we'll continue to drive hard to slowly but carefully increase that margin.

So we have good confidence that, that 35% margin that we put out a number of years ago, we have a pretty solid path to that. And we're pretty buoyed by how the business has gone with respect to costs through the first half of FY '26.

And I think if you look at us against our competitors, there's also another piece to look at, too. We've got massive initiatives, and we're playing on multiple fronts to support our customers, and we're still hiring. So compared to our competitors that are actually downsizing, we'll still leverage AI and gain great efficiencies through AI, but we're still looking for the people to help us deliver these amazing initiatives. So we're very different to everybody else. We're still growing in that regard because there are so many things on our plate that we're delivering.

Yes. That's a good point. So we can scale faster and do more. We've always had more ideas than we can poetic at. And AI cost efficiency just allows us to do bit of everything, to be honest. .

Your next question comes from Tom Beadle from Jarden. Please go ahead.

Just first question on ARR, just a follow-up on a few of the others. I mean -- just you just clarify just to what extent might showcase add to your AR this year, that sort of say $80 million to $90 million step up how much might actually fall into FY '26 number. And I guess, is it fair to say it's probably too early to have seen any of that impact in the first half. .

We could definitely see impact, no question. So again, if we started in October of last year, you'll start to see it flow through a little bit in the first half, but you'll start to see it in the second half. But our numbers remain the same. So again, what I'm trying to provide to you is the confidence related to the numbers. So we would be at time of year, very focused on Q3, Q4 as we're finishing off the year. We're very focused now on next year and the pipeline and the growth and the strategies and the campaigns for next year because of the foundation that we built early in this year and through showcase that's flowing through. So I don't expect that at any time to increase the ARR numbers, but it's just more confidence and comfort of them that allows us to look further ahead, if that answers your question. .

Yes, that's helpful. And just second question on NRR. Obviously, at 114%, it's obviously very respectable, but it is below your target range. So I know there's obviously a few moving parts here, but just with SaaS plus coming through just a little [indiscernible]. .

Yes, NRR growth back to that range. I think to be honest, it's just the timing of the deals, me. I think our full year guidance is 16% to 18% at the top end. And if we do about the same new logo, that 3%-ish, then we will do in the range, that's the $115 million to $120 million -- it's part of the same story. We have that visibility of the pipeline, strong momentum in the business. We're not concerned about that at all.

Yes. Got you. And just a final question on R&D costs. Obviously, they came in a little bit above your target range. Can you just talk to why that was the case? I mean, is it just as simple as your exit momentum into the second half is high. So the R&D to sales will naturally just fall back into that range? Or should we expect sort of a continued acceleration in R&D in the second half just to match that momentum we've got.

Yes. No. The 26% in first half is really a denominator issue. Our sort of the cadence, as Stuart mentioned, with respect to able to our R&D team hasn't changed. But you'll notice that our revenue increase versus the PCP was depending on which 1 you're looking at. And that was really driven by timing of of the sales in the first half. They're a little bit weighted towards the second half relative to the PCP. So when you put all those together, it just made that sort of 26% pop up a little bit. We expect it to fall back into the range through the rest of the year.

Unfortunately, that concludes our time for questions today. I'll now hand back to Mr. Chung for any closing remarks. .

Thank you, everyone. Thanks for attending. Again, our people are on a tear. We'd like to thank each and every one of them around the globe, and thank you our shareholders for continuing support. Thanks again.

Good morning, everybody, and welcome to Technology One Limited's Annual General Meeting for the year ended 30 September 2025. Apologies for the tight accommodation. This is a temporary accommodation while the exhibition center has been renovated. We will be back there next year. So hopefully, there's enough seats for everybody.

My name is Pat O'Sullivan, and I am the Chair of Technology One. As a business with strong community ties and our mission of supporting our customers and the diverse communities that they serve, it is important that we take meaningful steps to increase our cultural awareness. I would therefore like to begin by paying our respects to the Meanjin people of the Turrbal and Jagera indigenous groups, who originally inhabited the land we are upon today.

Today's meeting will be run as a hybrid meeting with shareholders attending face-to-face and via the online platform provided by our share registry MUFG Corporate Markets. This enables shareholders to participate in the meeting irrespective of where they are in the world, and I warmly welcome those of you participating online.

Before we start, I would like to play a small video to introduce our new shareholders to Technology One.

[Presentation]

For information provided to me by our company secretaries, I advise that a quorum is present, and I declare the meeting officially open for business. I would like firstly to introduce my fellow directors. From my right, Mr. Ed Chung, our CEO and Managing Director; Mr. Peter Ball, the Chair of our Audit and Risk Committee; Mr. Cliff Rosenberg, the Chair of Nomination and Governance Committee; Ms. Sharon Doyle; Dr. Jane Andrews, the Chair of the Remuneration Committee; Ms. Debra Eckersley; Mr. Philip Davis and Mr. Paul Robson.

Let me also introduce Mr. Cale Bennett, our CFO; and Mr. Stephen Kennedy; and Mr. Matthew Thompson, our Company Secretaries. There have been no apologies tabled for today's meeting. I note our company's auditors, Ernst & Young, are represented here today by Ms. Sally-Anne Jamieson. Also, we have a number of Technology One staff here today in their Technology One shirts, and I would like to also thank them for helping us.

I would like to recognize Cliff Rosenberg, who will retire as a Director of Technology One at the conclusion of today's meeting. Cliff has been a Director of Technology One since February 2019. Over the past 7 years on the Board, Cliff has played a valuable role during a period where we transitioned from a largely on-premise software business to a SaaS business and now a SaaS+ business. This period has seen incredible growth of Technology One, evidenced by the fact that the share price was $7.44 when Cliff was appointed as a Nonexecutive Director in February 2019. On behalf of myself, the Board and the whole company, thank you, Cliff, for all of your energy and efforts.

Before we start the formal part of the meeting today, the CEO and Managing Director, Mr. Ed Chung, would like to take the opportunity to provide an overview of the company's performance in FY '25, and the strategic direction going forward. The slides you will see today have been lodged with the ASX. So let me hand over to Ed.

Thanks, Pat. Welcome, everyone. It's good to see a whole lot of familiar faces here, and welcome to everyone also down the camera. Before I jump in, I would just want to remind everyone of the TechOne strategy because it's this strategy that enables us to have that strong consistent growth that we've delivered, and we'll continue to live out in the future.

Firstly, we make life simple for our community, it's very powerful and it's very meaningful for all of us at TechOne and for our customers. And you'll notice that there's nothing in that vision about ERP software because it's about what ERP software makes possible. We take the complexity out of ERP and turn it into clarity. And this enables our customers, local government and higher education, et cetera, to do their jobs well for all of us in the community. That's councils reinvesting in roads, in housing, in services, universities delivering world-class research and unforgettable student experiences and for government and health community service organizations, large infrastructure providers, all these essential industries that keep our world turning, they can operate better, they can scale and they can serve more for all of us.

Every innovation we deliver in our software puts more resources back to where it matters at that front line gives them back more money, more time. And we create mission-critical products. These are products and solutions that power local governments. They power universities, they power governments, they couldn't operate without that software. And our staff, you can see them in the TechOne t-shirts, we all live, work and play in the communities we serve. So we have a very, very deep connection with that mission.

And our strategy, it hasn't changed over the last 38 years at all, but how we execute that strategy. Of course, it evolves and changes quite a lot as we respond to shifts in technology, and we're going to talk about that in a minute, as we listen to our customers, as we see competitors, as the market changes, of course, we evolve that strategy. And it's this clear strategy that resonates with our customers and why we win against our competitors.

Now once we land a customer, they expand with us over many, many, many years, taking more products and more modules to streamline their business, it's why they stay with us forever. And it's what fuels TechOne's strong, consistent and steady growth over time. And you see that in annual recurring revenue growth. And here are the elements to our strategy. You can see them up there on the screen.

The first is one experience for our customers. We believe in one fully integrated solution, it's very, very broad. If you remember that video ago right back to when Adrian founded the company in '87, we had 1 product. If you pass forward to 2008, we had 11 products, go all the way to today, there's 20 products. And each product has over 20 to 30 modules. So there's like 500, 600 modules. And we continue to invest in R&D to build even more and more functionality, more products, more modules to make life simple for our customers. And it's all on one platform, one user experience, one upgrade path, one security posture, one source of the truth, all locked up in a very safe and secure environment.

Now no one comes close to our focus and our deep commitment to the markets we serve, the vertical markets we serve. In those markets, we have the deepest functionality by far. And we're hyper focused on those markets. And we only focus on those handful of industries, and we're not all things to all people. In fact, I have an investor come up to me, large insto, every road show saying here's $0.5 billion get into manufacturing, and we say we can't speak that language. We are hyper focused on the markets we serve. And we bring, therefore, 38 years of really, really deep industry expertise into those markets.

We compete and win against the best-of-breed providers and -- with ERP, but we're much, much more. We don't follow the standard path that everyone else follows. We don't fight in the red ocean. We call it the Blue Ocean. We've created a different place by having core ERP for those vertical markets. And it's mission-critical software. It runs the council. It runs the university. It runs government. It's very, very deep. It's very powerful. It operates those organizations.

And we're innovation-driven company. We believe in evolution, not revolution. We leverage new emerging technologies at every step of the way for our customers. We invest 20% to 25% of revenue each year back into R&D. That's at the leading edge of software companies globally. And when you count up all those dollars over the last 38 years, it's over $1 billion, it's probably over $1.5 billion invested back into R&D. And so we have a proven track record of investing that money into R&D, and the success we're having today is from those investments we made yesterday and 5 years ago.

And the fourth generation ERP, we know it is Ci Anywhere or CiA for short. It's available anywhere, any device, anytime. And it is totally reengineered the ERP for the fourth time in 38 years. And if you look at the other ERP providers in the world, you probably won't find any that have done it once, let alone the 4 times that TechOne has done it and think millions and millions of lines of code.

And this fourth generation, it has got streets above the highest level of cybersecurity certification of any ERP provider on the planet with the most trusted ERP. And we were the first ERP provider to get IRAP protected. And this is for the types of organizations in Australia that if I told you, I'd have to kill you the very secret squirrel. And it's not feasible for organizations to individually spend the millions -- hundreds of millions of dollars they need to keep at that very highest level of cybersecurity. So we do it once and applies to every customer in our customer base. And we'll continue to invest million dollars -- millions of dollars each year into elevating that and raising the bar for cybersecurity.

And with the Power of One, you know this, we build market, sell, implement, support and run our software for our customers and it's very unique. No one does what we do because we own that whole cycle. At every stage, when we get feedback or need to improve, that goes back into our product. And there's this huge IP engine for us. And we have that direct relationship with our customers. We own the relationship from end to end. And we do it, and it's hard and complex, and there will be issues from time to time. And there are always issues in ERP software, and it's better for our customers because in the traditional model, which is pretty much in the whole world, you buy software from a vendor and you get implementation done by implementer, the third parties, the big 4 companies like IBM and Accenture. And when stuff goes wrong, and it always goes wrong. They point the finger at each other and the customers left carrying the can, but not with TechOne. With the Power of One, we're 100% accountable. We own the entire relationship, and we will always make it right for our customers. It's one of the reasons we've got 99-plus percent retention over the last 38 years.

Now SaaS+ is a game changer in our industry, and it is moving the industry. It's where we get rid of long, complex, risky expensive implementations that overrun and we deliver it in 1 single fee for our customer. No one else does what we do. And it's in our DNA to drive that implementation time frames down, so customers go live faster because they don't buy software to go through long, complex implementations. They buy software to streamline their business.

And through the Power of One, we are the only organization in the world that's able to deliver this because we have the software, because we have the deep industry expertise, and because we have our in-house consultants who know the software and the industries deeply. You put those three things together, we're the only provider in the world to deliver SaaS+ and do what we do.

And so we've got two not-so-secret weapons now, SaaS+, that game-changing approach to how we deliver ERP; and then AI and Plus, which we launched at our showcase in October in Melbourne. Our software, like everyone else has, has thousands of screens. We've replaced thousands of screens with one screen, no clicks, no screens, just a conversation, two secret weapons that are not so secret. Let me explain.

So this is an older slide, but it's a very important slide. This is what it used to be like on-premise. You'd come to TechOne and say, "I want to buy software, financials, HRP assets, and we would come with a disk and come and install it in your server room. And back in those days, the license is what TechOne provided, but we would say you need amount of servers, you need racks, you need databases, you need operating systems, you need memory, you need compute power. That was the old way of doing software for ages.

And then SaaS came. SaaS said, you don't need any of that complexity. We'll deliver all of that for you as a service. That changed the industry. And TechOne became a SaaS provider as our fourth generation. Now today, you have SaaS, but our industry says to you, you now have to now implement your software. Who is your system integrator? Is it the big 4? Is it Accenture? Is it DXC? When we are there, show us your project managers, let's talk about project plans, we need to have business analysts, subject matter experts. We're going to talk to you about configuration, configuration design documents, testers with test scripts and test rail and data migration and integration, is just blah, blah, blah. The list goes on and on and on. And that's the complexity that our industry traditionally gives to our customers, and that's the operating model today. But with SaaS+, we take all that away from our customers, just like SaaS. We take all that complexity away. We do it all for our customers, and we do it for one single fee. And we are changing the world because tenders are coming out just asking for SaaS+. And who can deliver SaaS+? Only one organization can.

Now that is the Plus screen. Imagine TechOne software, 20 products, 600 modules, thousands of screens. That's complex. I couldn't tell you how to navigate all those screens. We've replaced it all. One screen to operate the entire ERP. iPhones changed the market for phones, Tesla changed the market for cars, Uber changed the market for how we order cabs. TechOne has changed the market for ERP.

Now in those October showcases, I would have spoken to 40 or 50 customers, and I was talking to an independent researcher in Sydney actually and also Macquarie University. And he said to me without prompting, "You have just changed the ERP market with Plus. No one has done what you've done. You've just leapfrogged everyone."

So now I'm going to run you through the highlights of the year that was FY '25. For the 16th consecutive year, TechOne delivered record ARR revenue and profit, and we beat the guidance that we set in May for that year. Now that was built on that strategy that I just talked about, just executing well on that strategy. And if you look at the results, they talk for themselves. We started the year celebrating 25 years as an ASX-listed company, and we ended the year as an ASX 50 company.

SaaS+, I won't go into that again, but that is our game-changing offering, which is changing the world and has changed the world. It's fueling our growth. That with our ERP is fueling our growth. And this, in turn, enabled us to deliver 18% ARR growth to about $555 million and profit growth of 19% to $181.5 million. And for those that follow us, and have been with us a long time, we had an ambitious target, and that target was $500 million ARR, and we delivered that 18 months early in the first half of FY '25. And of course, in the TechOne way, we set the next ambitious goal, $1 billion-plus ARR by FY '30.

So as we highlighted, we delivered strong growth and an increasingly common metric to measure SaaS companies is the Rule of 40. And what that is, is your revenue growth and your cash profit margin. And there's no really strict definition of what is the Rule of 40. And we got some feedback that we're measuring it wrong, that we were using post-tax profit when we should use in pretax profit. So we said, okay, let's update it. It made our Rule of 40 result even stronger. And so you can see there that it's a result of 59, and that puts us in the top quartile of software companies in the entire world.

We're incredibly proud of those results. And our Board signed up on the final dividend of the year, and that was $0.20 per share in addition to a special dividend of $0.10 per share, taking the final dividend up 63% to $0.366 per share. We're extremely proud of that success, and it's because of the confidence in the future and our growth that we were able to give that dividend to shareholders.

We have a very strong balance sheet. You can see there, $320 million of cash with no debt. And as you would expect, our free cash flow is very strong, growing in line with profit.

So to summarize that, we achieved record ARR profit and revenue, ARR up 18% to $555 million. U.K. ARR, U.K., the flywheel is turning, up 49%, sales ARR up 52%. Profit at $181.5 million, that's up 19% and beat that guidance that we set in May, of 13% to 17%. And we have a very strong balance sheet, which allows us to continue to invest in R&D. R&D Up 20%, building the next generation.

Now I'm going to slow right down and spend some time -- some deep time because the market is asking whether AI kills software companies. And I'm here to show you why TechOne is actually getting stronger with AI. We have $555 million of recurring revenue, 99-plus percent customer retention. We double in size every 5 years, and we have that big goal of $1 billion plus ARR by FY '30. Those numbers aren't just historical. They're the foundation of what comes next.

And so if you look at this slide and think about the last 38 years and all those technology shifts, our focus in TechOne has always been, it's deep in our DNA to leverage these ships for our community. It's actually why we called Technology One. And we always focus and plan on the long term. And we've been working on this next technology shift for some time. And we've invested a lot in R&D, over $1 billion, $1.5 billion to take advantage of these latest tech shifts. And we're entering what we call the fifth generation of TechOne's ERP, that's the AI generation and also the SaaS+ generation.

And at each generation, it's far more than technology for us. We reinvent our entire organization. That's our technology, our structures, our processes, everything. Everything gets reinvented, and we're really excited about this new future. And the success we're having today is from the R&D we made 5 years ago, and the success we have tomorrow is from the R&D that we're investing today.

So this is the fifth generation, right? It's the SaaS+ generation, and it removes the need for long, complex, risky implementations that the consulting firms are known for. And we have a goal -- and typically, they take thousands of days. We have a goal to do it in 30 days, and we are using technology and driving down to implement ERP software in 30 days. That's unheard of. People have told us it can't be done, and we're proving that we are driving those days down. And if you look in the corner there on that slide, see that little powered by AI. This strategy was thought up years and years and years ago. We needed a few things to come together, and we launched this strategy in '23. So AI is not new for TechOne, this is just a taste of some of the AI that we've been using and just a validation point of how we're leveraging AI for our future.

Now today, I'm going to walk you through why AI is an accelerant for our business, not a threat and why short-term movement in markets, they're not a concern to us. We structured this presentation around 5 core themes because not all SaaS companies are created equal. And I want to take some time now to walk you through this.

The first is I'm going to take you through the macro. What's actually happening in SaaS and AI? Then we're going to get into a resilience framework that separates the winners from the losers. Third, I'm going to tell you when TechOne fits in that picture, our customers, our strength, our moat. Fourth, I'm going to show you how AI actively makes TechOne stronger through our AI-enabled products, through Plus, and some other things that we're going to launch in London next week. And fifth, I'm going to take you through our long term, our 5-year view. And finally, I'm going to take you through our upgraded guidance for FY '26.

Now we are increasing the guidance, and it's not optimism. It's confidence in everything we've been doing. It's confidence in our pipeline in Australia, New Zealand and the U.K. It's the momentum of SaaS+ that we've talked about, and it's a response to Plus in our AI-enabled products that will be launched shortly. So I'm going to get into the first part, and show you what's really happening in SaaS.

So have a look at this picture here. People in the market are saying that SaaS is dead, but there's a very specific type of SaaS that's going to die, a very specific type of software business. So on the screen here is traditional SaaS. This is the model that's been around for the last 15 years or so, and it's a very simple playbook. Companies would find a common business process, build a workflow, build a really good user interface, add some integrations around it and charge per seat per month. And then they would defend their position with switching costs and minor tweaks to the product. That is the playbook for SaaS companies over the last 15 years.

And so what's changed? Well, AI has changed, coworkers changed. And you've seen and probably read about AI plug-ins that allow AI to log directly into your systems, for example, your CRM, your customer relationship system, and perform entire workflows autonomously. And you would have read lately Anthropic brought out that legal analysis, and that has spooked the market because there's no human in the loop, and this is the part that's really frightening everyone.

Now because if an AI agent can do the work inside your systems, why do you need 15 different SaaS companies or providers with pretty dashboards sitting on top? If AI agents can do the work of employees, you don't need hundreds of SaaS subscriptions. And in our well, that's commonly known as seats. So if AI agents don't kill the software directly, it kills the head count that uses the software, which kills the per seat revenue model, which kills that software business.

So what's changing? Let's look at the picture on the right. Right now, value is getting sucked up to the top, that agent layer. That's actually executing the work that people used to do and downward into the system of record. That's the data, the workflows, the compliance, the security, the infrastructure. Everything in what's called that thin middle, that's the SaaS user interface, the dashboards, the screens. That's where you click that gets crushed. That's why you're seeing valuations. Valuation multiples have dropped significantly against the world's largest SaaS companies. It's not because people don't need what they do, it's because the investors realize that the moat around having a nice user interface and some integrations is paper thin and the AI agent can bypass that user interface totally. The interface used to be the product. Now it's just a shell.

That middle layer, that SaaS user interface, it's getting squeezed from both directions, the top and the bottom. The value moves up to the agent layer, and the value moves down into the system of record because here's the thing. AI agents are only as good as the data they can act upon. And that needs trusted, authoritative data, the workflows, the delegations, the compliance, the security infrastructure, and that's in the system of the record at the bottom of the slide there. And that's exactly what TechOne is.

So we've created the AI agents, the world's first and simplest user interface, that Plus interface. We've already done that. And we have the system of record. So when people ask, is SaaS dead? The answer is it depends where you sit in that layer, in that diagram. If you're a screen interface, you should be worried. If you're a system of record, you've probably been never more valuable.

Okay. So these are the three implications from the shift and they're all playing out in real time right in front of us. First, the users and interfaces are being disrupted. AI agents are replacing traditional SaaS users, their routines, their workflows. And conversational AI like Plus, which we've already launched is replacing complex screen navigation. Two layers at the top of the stack there are being fundamentally disrupted and fundamentally reshaped. And this is where the market fear comes from. And for companies sitting in those layers, it's legitimate.

Second, the per-seat pricing is under pressure. If AI agents do the work of employees, you need fewer software seats. It's quite logical, right? That per-seat model that built SaaS companies and built SaaS fortunes is structurally threatened. And IDC, a research house in our tech spaces, by 2028, that's gone. That's the per-seat pricing model. We saw this coming decades ago. We've never been per-seat pricing model, and we don't charge per-seat. We're going to show you how we charge in a few moments.

And third, and this is the critical one. The systems of record with proprietary data, the workflows, the delegations, the compliance, the security, the infrastructure with mission-critical platforms and deep domain expertise and businesses with the outcome-driven pricing they're going to gain from it, not lose from it. And that third point, that's TechOne. Let me show where we sit, and there's going to be a framework that we're going to go into to make this more concrete.

So I've set the macro. I've set the macro of what's killing SaaS companies. Now let's look into this framework you used to assess SaaS companies and their resilience to AI disruption. Now this framework comes from Jarden. It identifies 7 dimensions that determine whether a software company thrives or struggles in this new era, this AI era. Now I'm going to go through each one of those and how TechOne fares. The first one you can see there on the screen is AI capability investment. Now we're not bolting on AI as an afterthought. AI agents and Plus is already deeply embedded across all of TechOne software. We demonstrated it in our showcase in October last year. And we're launching some even more exciting things next week in our London showcase. Now that investment in AI allows us to build even more software even faster with the developers we have, making us more productive, giving us more value to our customers or within our guidance. It doesn't change our guidance at all.

The second is proprietary data. We have 38 years of first-party operating data from mission-critical contacts and mission-critical processes. We hold the source of the truth that third-party AI simply can't access securely. We have insights across over 1,000 customers, hundreds of councils, hundreds of unis and governments that create a data advantage that no one else can match. All hosted within secure countries, secure jurisdictions that comply with the highest level of cybersecurity certification on the planet for our customers.

The next two there is domain expertise and regulation. I can't stress enough, it's mission-critical products that run a council, run unis, run governments, highly regulated industry, we have deep knowledge of how they operate, compliance, workflows, delegations, the regulatory framework. And foundation models simply can't replicate that. This is decades of accumulated knowledge, complexities of counsel, complexities of unis, all baked into our software. And then customer embeddedness. We have 99-plus customer retention over the last 38 years. We are the system of record. If we go down, the council goes down, the uni goes down, their operations stop. That's not a nice to have. That is mission-critical dependency on TechOne.

The next is switching costs. We've got deep and broad functionality, think 20 products, 600 modules. That means we used across multiple departments in a council, multiple departments in an organization with long-term committed contracts. You can't simply just pull a piece out now without reengineering all of your core operations, so there's high switching costs.

And then, of course, pricing power. Our revenue is not linked to seats. Our revenue is linked to ratable properties in a council. So when the council grows, our revenue grows. Our revenue is linked to students in a university. So when the student grows, our revenue grows. And when we launched AI embedded in our products and Plus, we introduced transaction-based pricing. So as they use more of AI and Plus in interactions and conversations, our revenue grows. And in the U.K., we're launching something new and core, which is advertising revenue, which we're going to share with our customers, but more about that after next week.

The next and last one is the network effect and scale. We're niche, we're the market leader in Australia, New Zealand and U.K. public sector and highly regulated industries. We don't just have one council or one government or one uni. We have hundreds. We have 1,000 customers, and that data is highly, highly valuable in training our AI models, and there's also high barriers to entry for others because of regulation and trust. Now these 7 dimensions show how we are embracing AI to provide even more value to our customers as well as their customers, which are you and I as a resident and a council or our kids as students in a university. Now at every dimension on that Jarden framework, it favors TechOne.

Now I'm going to go even further and say let's compare different ERP companies now. So if you see this slide here on the left-hand side of the slide, this represents the higher-risk ERP company for AI disruption, that is horizontal, general-purpose software, single application, low regulation, simple switching costs. These companies have probably the highest total addressable market and the simplest investment case and they sell to commercial buyers, but they're also the most exposed.

Now on the right, this is a more lower risk of AI disruption, vertical-specific, mission-critical platforms, deep multi-department workflows, highly regulated, complex switching costs, outcome-based pricing. Now the total addressable market is relatively smaller, still large for us, the investment case is far more complex. This is complex software, but the buyer is a public sector or highly regulated. They're risk-averse, they're measured, they're deliberate, and they're incredibly sticky.

Now TechOne firmly sits on the right. Every single characteristic in that right-hand column, which you see on the screen there, describes TechOne's business: Vertical, mission-critical, regulated, long-term, outcome priced. So when the market sells off broadly all software stocks because of fear of AI, they're painting with far too broader brush. Companies on the left should be worried. And for us, AI is creating opportunity for us at TechOne.

Now let me show you who our customers actually are. This slide is important because that explains why our 99-plus customer retention over the last 38 years, it's more than just a number, it's structural. Now there are two types of buyers of ERP, were purpose built for the public sector and for highly regulated industries. Now the public sector and highly regulated industry buyers, they're accountable and they're risk averse. They value trust and proven solutions above all else. They tolerate longer procurement cycles because they believe in getting at right matters more than getting it fast. They prioritize vendors with security, compliance and a proven. And critically, they're measured by outcomes, not by cost savings.

Commercial buyers, they're very different. They're more risk seeking, cost driven, fuel constraints, they'll try new tech if it offers a competitive advantage and they expect rapid return on investment.

Now TechOne is built for the first group. These are councils, these unis, government, health organizations, large infrastructure providers, entities that serve the public serve you and I, and they cannot afford any failure. And when they choose a system and when they choose the system of record, they're choosing for a decade or more.

And if you believe the hype, our customers are coming to us and asking for shorter contracts to jump ship. But just to be clear, they're asking for longer contracts and they're looking for certainty. This is why AI disruption needs to be measured differently in our market. A council isn't going to rip out their financial system or their asset system just because that ChatGPT exists. They need trusted compliance, sovereign software and proven software, and that's what TechOne provides.

Now we've established a macro. We looked at the Jarden framework, we've looked at who our customers are. Let's take it even deeper inside TechOne, our moat, our competitive strengths, and how AI makes these even stronger. So our strategy, our investments and our resulting moat even before AI was incredibly strong and incredibly deep. We built that verticalized software, that mission-critical software for the world's most demanding customers, is mission-critical. And there's only a handful of vendors in the world that do what we do.

We have the highest level of cybersecurity certification. We have the world's first SaaS+ model where we go live faster in 1 single fee. We've been telling our investors and investment community for years that cloud is war, and we won that war. And what that means is when you're on our cloud, our customers are taking more and more of our products to streamline their business, which means we have more and more of their data. And we've built this tremendous data lake, and that information is so rich and so valuable for AI.

Now these aren't marketing claims. They're structural and they talk decades and decades to build. No start-up and no horizontal AI tool, no foundation model can replicate what's on that slide overnight. But here's what excites us. AI, if we execute well and we will execute well, doesn't erode us, it makes us stronger. It amplifies and I'm going to show you now.

All right. So we just go back for one second. TechOne is changing the market with AI. I showed you that Plus screen before. One screen, which replaces the thousands of screen in TechOne software. That's deeply embedded. AI is deeply embedded with our products and modules, no clicks, no screens, just a single conversation. And we're launching a new product in the U.K., which is similar, we call it business-to-business to consumer. It's for the residents, it's for the students. And at every step of our evolution, we've not only created or leveraged technology for our customers, we've reinvented our whole business. But we've also made it frictionless and remove the barriers of adoption for our customers. So I just want to remind everyone of what we've done.

So we started all the way back as an on-premise company, but we went Power of One, and that was to remove the third-party implementers. And by being 100% accountable, we removed the friction and the barriers for our customers and ensure they could go live fast. We then became a cloud company to remove the barriers for faster adoption of our product. We pivoted to become a SaaS company. And we're the first to be IRAP protected certified, which removed the barriers associated with cybersecurity risk. We became a SaaS+ company and removed long, complex, risky implementations for our customers, it's what's fueling our growth in the U.K. And now we're leveraging AI by creating the fifth generation of our ERP for our customers.

Now our customers love having the certainty of the product benefits -- productivity benefits that our AI brings, but the uncertainty around costs that AI brings. So next week we're introducing a new advertising revenue share model at our London showcase to remove any cost barriers for our customers. It's in our DNA.

Now I'm going to provide an example of the competitive strength in actions. And this was demonstrated to our customers in the showcases that launched in October. So you and I, we're a resident of any council in Australia and New Zealand, it doesn't matter, and you want to build a granny flat. As we demonstrated in the showcase, you're going into One screen and ask our AI-enabled property and rating product in natural language to submit an application for you or I to build that granny flat or get permission to build that granny flat in our council. And this is what we referred to you in that picture as that top layer, if you remember that top layer. Now our AI product then goes deep into the TechOne ERP for that council. This is what we call the bottom layer, that system of record. And this is where all the value lies in ERP. It's not the agent layer, but bottom layer because that's the rules, the delegations, the workflows, the compliance of security. And it goes deep into our products.

Firstly, it looks at, for example, spatial and it goes where do you live, and it knows where you live. And it looks at your location, and it can go right down to your block of land. It can then go into the property and rating software and go what are the rules for your area to build that granny flat? You can then go deeper and go what has been assessed outside of those rules by those planning departments in that council. We'll go into the financials and give you a bill, and you'll pay that permit using enterprise cash receipting. And it'll also look at enterprise content management for those rules and for your application and secure it, store it very securely.

So you can see that our AI gets all that information. But now it utilizes the business rules, the policies, the standards, using AI to go and approve that application for you. Third-party tools and bolt-ons can't do that. They don't have access, they don't know the rules, they don't have the authoritative data. Sure, a third-party agent, you can do, I can do it, can go find out the rules in your area. But that's all it can do. Now you'll get your building permit issued like that. Completed through the AI that's embedded in TechOne's deep and broad ERP.

Our entire stack supports the entry, and operating by the administrators and the council for later use. All of that, including AI, is governed and controlled. All customer data is secured. We have achieved ISO 42001, which is the world's first global standard AI, artificial intelligence systems. These are real rules with real decisions, with real gains, AI for regulation, not for hype.

And when we showed this to our customer base, I remember a conversation I had in New Zealand, we showed the council that time saving on one application, times by the thousands of applications they do per month, and the CIO of one of the councils came to me and said, "You're kidding, Ed. It's 10x better than that." So the productivity benefits for our customers is huge, leveraging the AI that's embedded in our products. That was just one tiny example of what our software can do.

Now think of the thousands, tens of thousands of functions that our software can do across unis, across councils, across government, healthcare, students, you name it. Applying for uni course, selecting your studies, scheduling a class, getting your bins picked up, applying for a granny flat, doing an infrastructure defect, bucket loads of functions, all already AI-enabled for our customers.

Now as the niche market leader for public sector and local government, higher education in Australia and U.K., we don't just have one council or one uni or one government department. We have hundreds. And that data is highly valuable in training our AI models. And there's huge barriers to entry for any competitors because of regulation, because of trust, because of cybersecurity certification. We have the domain knowledge for each of those vertical markets. We know the workflows. We know the business rules and we have the business processes that our customers need.

Now it's in our name, Technology One, we take care of technology for our customers so that they can focus on their core business, which is serving you and I. And we can share those common business practices and share that data anonymized across councils, across unis so that they can become more efficient. And you're going to hear me say over and over and over, we are our customers' AI strategy.

Now this is the slide that answers the key investor questions of how does AI actually make TechOne stronger? And the answer is in everything I just described to you. AI is deeply embedded our products, plus that conversational screen gets rid of 1,000 screens. And what we're about to launch in London next week is part of why we come out stronger. Now Plus in our Agentic AI platform, it's built in. It's embedded across all 20 products, 600 modules. It's not a bolt-on. It operates within our customers' own data, their permissions, their governance. Every customer's AI gets smarter with every transaction that they provide. And because it's built in, customers don't need to pick third-party tools that could breach sovereignty, et cetera. It's all built in. And we've done this for all of our customers in all verticals. And we're going to launch a new AI-powered resident portal in the London showcase. Again, it's conversational AI, no screens, no clicks, just a conversation. And we're going to launch that with a world-first advertising revenue share.

So imagine a council or a uni having to pay for AI, but getting a revenue stream that potentially comes with it as well. So it transforms us from not only focus on the back office, but on the thousands of users in a council or a uni, we've become a platform business.

Now look at this right-hand side, that's the five ways the economic moat deepens, broadens. The switching costs increase because AI is trained on customer data, and it becomes uniquely more powerful for our organizations that we serve. The data moat widens because every transaction creates more proprietary data in the models. New revenue streams are unlocked, as I discussed. We've never been seat-based. Ratables for councils, students for university, transactions for AI, and an ad revenue sharing model. So we described this as both a sword and a shield. A shield, and it protects us from third-party AI incursion and a sword because it's opening up new revenue streams through end user monetization for us. This is why we say AI strengthens our position and deepens our moat.

Now look at this slide, just updated through what I just showed you. Everything on this slide was already strong. But with Plus and our new AI-enabled products on top, every one of these gets even stronger. Our verticalized software has embedded AI, our mission-critical apps now have an AI interface.

Our customer retention strengthened further because we are their AI strategy, not just their ERP. Our investment in AI allows us to build even more software, more features, more functions, even faster for our customers, making us more productive or within our very open and public guidance parameters. The moat was wide before. With AI, it gets deeper.

Now I just want to pause a little bit and land this central message of this presentation. Our customers in public sector and highly regulated in industries, it's just like everyone else in the business world. They're under the same pressure to leverage AI every day to make their life more productive so that they can provide better services to us, their stakeholders. We are their AI strategy.

Now we're not a company that needs to figure out AI to survive. We're a company now that's leveraging AI. We've been working on it for the last 5 years to become even more essential to our customers. We own the data, we own the products, we own the platform, and now we own the AI layer too. SaaS isn't dead, but value is shifting, and it's shifting towards exactly what TechOne's built over the last 38 years. And the proof is in the pudding. So the first metric we can share with you is the early adoption of Plus, that nice user interface I showed you. In the short time that we launched Plus, only in October last year, so I think that's probably only really 2 months of selling with Christmas in the middle there. We have 20-plus customers, marking Plus as the fastest selling product in our history and the fastest to go from $0 to $1 million-plus ARR. And that's a pretty remarkable achievement for something that was only launched a couple of months ago, and it's not even in our customers' hands yet. They get it in the end of February and early March.

So we've covered a lot so far in this presentation. We've covered the macro framework, the Jarden 7 things, our position, our AI strategy. Now I'm going to change gears and show you our 5-year view, starting with our track record.

Now over the last 38 years, as we say, we've invested a bucket load in R&D to take advantage of the latest technology for our customers. And we're entering that fifth generation. That's AI generation and the SaaS+ generation. And for us, it's more than just a technology shift. We reinvent our entire organization, our tech, our structures, our processes, our systems, absolutely everything. And if you came was a fly on the wall in our business, you'd feel the buzz, you'd feel the excitement. And the success we're having today is from the investments we made yesterday and the success we're going to have tomorrow is from the investments we're making today. We'll continue to double in size every 5 years, and our goal is $1 billion plus ARR by FY '30.

This chart tells a very simple story. TechOne has doubled roughly every 5 years, consistently through every market cycle, every technology shift. And at 15% compound, you double every 5 years. We're targeting 18%. So it's not just a hockey stick projection, it's a pattern we've delivered for over a decade. The math for us is straightforward. It's the execution which matters. And you see that through our software, you see that through our customer excitement, you see that through our customer feedback. And of course, our track record of consistently doubling every 5 years, this gives me and us high confidence in our trajectory.

What's different now is AI creates even more growth vectors for us. Plus will drive deeper usage and stickiness. It will introduce new revenue streams. The AI products we're going to launch next week in London, an entirely new revenue stream, these are additive to the organic growth that TechOne has already proven. Now we're projecting $1 billion-plus ARR by FY '30. It's not just a round number, it's because of math and the momentum in our business supports it.

All right. We're in the final section now, folks. Let me share our upgraded guidance. It was published early this morning and close with the key message that I want you to take away.

We talk about heartbeats and rhythms in our business for as long as I could remember, it's drummed into me by Adrian. We do this because we're disciplined, we're focused and we have a history of delivering. And as we've transitioned from on-premise to a SaaS company and now a SaaS+ company, we've been able to carefully and surgically increase that heartbeat and rhythm in our business and upped our guidance from the traditional 10% to 15%, which it must have been for 35 years, profit growth. Then in FY '24, we went from 12% to 16%. And than in FY '25, to 13% to 17%. And you can see from that slide, we have a track record of always delivering above at the top of guidance. And we have those 2 not-so-secret weapons, SaaS+ and AI.

And the markets we serve, they're resilient. We're not impacted by the current geopolitical issues. We've got that mission-critical software with deep functionality in the markets we serve. We focus on the ERP and tech for our customers so that they can focus on you, the residents of a council or the students of the university. Our customers are independently verified by moving to TechOne SaaS and TechOne SaaS+, they say 40-plus percent. SaaS+ is driving our pipeline and driving more opportunities for us, and we have a very strong view on the pipeline for 2026, and we'll continue to benefit from our single global -- single instant global SaaS ERP, which will help us deliver that margin growth to our bottom line.

So when you put all this together, we announced profit before tax growth for FY '26 of 18% to 20%, upgraded from last year's 13% to 17%. ARR growth is forecast at 16% to 18%. And to be really clear, we're targeting the top end of that for both profit and ARR. And we're not expecting to beat it, like the market has seen us do over many, many years. So a company growing consistently at 20% is quite an amazing feat. So our goal is to hit the top of both those ranges. Furthermore, all of the R&D investment we're doing in AI and products and SaaS+, it's all factored into that profit before tax guidance, and we will see immediate benefits of AI to our bottom line.

In terms of the phasing between half 1 and half 2, our FY '26 deals, as always, are second-half weighted. So as normal, there will be a bit more ARR growth in the second half than the first half. For the full year, our free cash flow generation is expected to equal net profit after tax. That's the health of translating that accounting profit to cash. It will be 100%. And we've invested in our AI showcases in Australia, New Zealand and next week in London. And these are big investments. It's a big event with a very clear commercial opportunity, somewhere in the order of $8 million to $9 million, and that's going to hit our first half profit. So we're expecting high single-digit percentage growth in the first half because of that investment we made in those showcases in the first half.

Now half 2 profit will be robust, and that's how we're going to deliver that 18% to 20% upgraded guidance. We're increasing guidance. It's not optimism, it's confidence. It's confidence in our pipeline in Australia, New Zealand and the U.K., the momentum of SaaS+, the response to AI and Plus, and the excitement of what's yet to come. We've earned that -- sorry, and the earned and what we've earned and delivered over the last 38 years, we don't guide up unless we can see it in the numbers.

So I just want to now close where we started. SaaS isn't dead, but value is clearly shifting from users and interfaces to outcome-based models. And that shift favors everything that TechOne's built over the last 38 years. We own the data, we own the products, we own the platform, and now with Plus and AI built in and what we're launching in London showcase, we owned the AI layer too. 38 years of consistent delivery, 99-plus percent customer retention, 90% recurring revenue, a very clear path to $1 billion ARR by -- $1 billion-plus by '30 and upgraded guidance for the current year FY '26 of 18% to 20% profit growth. We've never been more confident in TechOne's position. The AI era doesn't threaten us. It validates 3 decades of strategic choices. And TechOne is our customers' AI strategy.

Now finally, moving to our people and culture, an important part of the culture of TechOne is the DNA of TechOne is our foundation, supporting great Australians doing great things, doing great work, both locally and international. Our TechOne foundation will continue to grow as TechOne's bottom line grows because we've signed up to the 1% pledge. That's 1% of profit, 1% of product, and 1% of our time goes to those charities we serve. The foundation is shaping and will continue to shape our people, our staff and the DNA of the company. And our goal, like everything, a big goal is to lift 500,000 kids and their families out of poverty by FY '31.

As I said right at the very beginning, our people, you see them around here, perhaps in yellow shoes or in the TechOne T-shirts, they have a really deep connection with our mission, with our purpose, because they, their brothers, their cousins, their families, their kids, their sisters, their family, work, live and play in the communities we serve. They are the ones that live and breathe the TechOne way. They are the ones that create those mission-critical products. They are the ones that deliver those solutions that power our customers. So none of these results would be possible at all without those talented and committed people that make up TechOne. Our people are in a role that have energy, that have momentum. We would like to thank all of the people in TechOne here and all over the globe. Thank you for your time today. FY '25 has been another amazing year. FY '26 and beyond is very exciting for us. We'd also like to thank you, our shareholders, for your continuing support.

To end, I'd just like to play a mashup video, which shows the fun and shows the DNA of the people at TechOne. Thank you.

[Presentation]

Thank you for that presentation, Ed. For those who have been here before, obviously, Ed took a bit longer than normal, but we thought it was important in a world of uncertainty and opportunity that we give you a sort of deeper insight and understanding as to how we are thinking about this company.

We'll come to questions shortly, but I just want to explain if you're a shareholder and would like to ask a question through the online platform, could you please click on the Ask a Question tab at the bottom of the screen and follow the instructions provided. We will endeavor to answer as many questions as we can. You can submit those questions now or at any stage during the meeting. You do not need to wait until the relevant item of business. We will then seek to address your question during the discussion on the appropriate item of business.

Questions being sent through the online platform may be moderated to avoid repetition. And if the questions are particularly lengthy, we may need to summarize them in the interest of time.

We have been advised by the registry services provider that while shareholders have been provided the ability to register to ask questions via a phone line at this meeting, we have not received any registrations for this service. As such, we will be responding to questions put forward in the room and in writing online only.

We will provide time for questions on each item during the meeting, but I would now like to provide the opportunity for shareholders to raise any questions they may have specifically regarding the content of Ed's presentation. So if you're in the room and you have a question, I ask that you raise either your yellow voting card or your blue registration card, and we'll have one of our staff come over and give you a microphone.

Questions in the room. Paul?

My name is Paul Donohue, and I represent the Australian Shareholders' Association. I'm holding proxies from 88 shareholders, totaling about 443,000 shares. First of all, thanks Ed for the fantastic presentation. It really did a good job of highlighting some of the perceived risks and your moat against those risks.

You talked a lot about Agentic AI, but one of the other risks we hear a lot about is [ vibe coding ], where you can use AI-assisted tools to help code software yourself. And there's the stream that customers can build their own software in a house. So obviously, building something like your product would be a massive undertaking, probably not realistic. But there's always going to be a niche that software teams have, internal software teams or your customers to build things. Do you provide any way for your customers to not replace but augment your product in-house?

Thanks for your question. Yes, vibe coding is one of those new buzzwords, isn't it, where people can use AI to -- perhaps create some software. I think, like you said it's fun on one hand, it's unrealistic on the other to connect it to highly secure systems and then for someone to maintain it and keep it going. But to answer your question, yes, so maybe 2 showcases ago we launched a thing called App Builder, which allows people to extend our software using their brands, their smart, their knowledge of councils or unis and to extend our software. And so that's out there in a few customer sites right now. We're going to iron out a few bugs and get it really robust to do that thing. And that's the way that we allow customers to extend our software.

And the flip side of that, if I can, not such a vibe coding, but developers using AI tools to improve their productivity. Are you using tools like that in-house? And have you seen any performance uplift as a result?

Yes, we definitely have. So we, like every company, like our council customers asking our staff, how do we get productivity benefits using AI? And one of the earliest places is in R&D. So although we invest quite a lot in R&D, I think what you'll see is more and more features come out faster for our customers as we leverage AI for our own use or within our guidance parameters that we set in the market.

I just wanted to check, since the presentation you did in October with AI, the share price dropped quite markedly. Listening to today is a totally different thing in terms of positive outlooks. Is there a communication issue with how the AI presentations appeared to the market, resulting in that price...

The simple answer to that, and there's far more educated people in this room than me to talk to this, is the markets do what the markets do. At the moment the markets see a red when it comes to anything to do with AI. And most of us in this room have been around a long time. We've seen cycles like this. At the end of the day, the good will rise and the -- [ or what ].

Thank you very much for your presentation. It was brilliant. Any plans to expand into the U.S.?

If I say yes, I'm in trouble. I might have told this story before. Pre-COVID, we did have plans, and I think we might have even tried to do our tender here and there. But what we realized as an organization, focus and discipline is what gets the results. And so if you look at the amount of time, effort, blood, sweat and tears we put into not only Australia and New Zealand, but the U.K., that's where our focus is. The market is huge, the opportunity is massive. We deserve to be in the U.S., I think, but our focus is really executing well and delivering for the customers. And of course, therefore, shareholders in the markets that we are currently.

Stephen, questions online?

Yes, Pat. We've got 3 questions online. The first is from Jeff Rogers. He says, "Hello, Ed, thanks for the results in the presentation. What do you see as the growth path for T&E? Will the rate of growth increase in the future, i.e., super compounding?

No pressure. I think -- thanks for the question. We talked about that heartbeat. TechOne growing at 10% to 15%, getting to where we are consistently 20% year in, year out. That's, in my words, mind boggling that any organization can do that over and over and over. And doing it at those rates is, in fact, doubling in size faster, isn't it, than 5 years, it's probably 4 if you do the math. So I think we'll just stay at those rates because in the end of the day, we have to still deliver for our customers, right? And so you got to get the balance right of growth and delivery for your customers. And so I'll just finish there. Thank you.

The next question is from Stephen Mayne. He says, "The share price has bounced almost 10% today, but at $0.2350 it's still a long way below the record high of $0.42 in June last year. We've clearly been hit by the global AI disruption fears, just like the Chair's other ASX 100 company car Group. What is the Chair, Pat O'Sullivan, personally doing to upskill on the AI threat? Has he traveled to Silicon Valley many times since the release of ChatGPT? And who are his key external advisers on the AI threat in such a fast-moving environment?"

Thanks for the question, Stephen. So I'm blessed to Chair 3 wonderful Australian technology companies, and I couldn't be surrounded by better people that educate me every single day.

And the next question we have is also from Stephen. He says, "Do Australian councils ever band together and deal with us collectively in order to strengthen their buying and negotiating power? Or do we pick them off one by one? How strict are the privacy provisions in our local government contracts? Are these suitably tight that councils are now allowed to talk to each other about our technology services and pricing? And how common is our practice of signing single contracts that apply to multiple councils?"

I don't know where to go with that. We are most government panels, and that's where most of our customers buy from. I've almost forgotten the question. SK, can you ask that again?

Yes. And how strict are the privacy provisions in our local government contracts regarding discussion between the councils?

This is about purchasing. Our government customers, as you can imagine, are not competitive. They talk to each other all day every day. The value of our product talks for itself. And so yes, they talk to each other. Yes, they talk to us, but we deal with each individual council individually.

Are there any other questions there?

Yes. Sorry, 1 more from Stephen. He asked, "shares in Corporate Travel Management has been suspended since August 22 last year over accounting irregularities with talk that it may be broke. Their Founder and CEO quit 12 days ago. On December 8, our Chair and CEO made an ASX announcement defending our CFO, Cale Bennett, who spent 4 years as Deputy CFO or CFO of Corporate Travel Management before joining us as -- 2 years ago. Please provide an update on the situation."

So as we said in that release, for those in the room aren't familiar, so Cale Bennett is our CFO, worked at Corporate Travel Management a number of years ago. He's worked for us for a few years. And since he's joined us, he's done a really good job of helping the company grow to be an ASX 50 company. Ed and I've spoken to Cale a number of times about what's happened and is happening at Corporate Travel Management, and we've looked at what the public disclosures are from Corporate Travel Management and we've got confidence in Cale at this point. But as we said in that release, we will continue to monitor the public announcements from Corporate Travel Management.

That's all online.

There's another question in the room?

My question relates to data storage. Obviously, the growth in data storage just for the company is going to be immense. But big competition for storage around the world now. Just wonder, is it an issue for the company? And how do you handle data storage?

Thank you. Deep in the bowels of the TechOne SaaS platform, it's powered today by AWS, Amazon Web Services. And so we are one of their most important customers from this side of the world, and we work with them a lot in leveraging new technologies to provide faster, cheaper, better and more secure services to our customers, data storage just being one of them.

Thank you for your presentation, Ed. Very illuminating. I'd just like to ask you, you said you had 22 customers already on your AI, which you released in October. Is that 1 of the main components driving your upgraded second half?

It's really just the confidence in everything we're doing, the confidence in our pipeline, the confidence in SaaS+, and it is the confidence of AI as well. So it's one key part of it.

A few people have mentioned the share price, and I appreciate you don't control that. But given that there seems to be a major disconnect between operational performance and market sentiment and the share price, are you considering a share buyback to take advantage of the undervaluation?

So we consider capital management the whole time, Paul. As you know, we've got a lot of cash. We think about what we do with that. There's lots of opportunities around the world at the moment. And we will, in time, decide how we spend that cash.

I've been a long-term TechOne shareholder, going right back to Adrian Di Marco's days at [ Tribe ]. My question to you is in relation to the U.K. strategy. I think going forward you've been invested in the U.K. for a number of years. And I guess you just through last year's results, getting some momentum there. With the showcase coming up in the next couple of weeks and you alluded to a new product on launch, what's your expectations or what can we consider for the U.K.? Because it seems to me at the moment the U.K. is going to be the growth engine rather than Australia. Is that -- and are you confident that in your way forward into boroughs and education sector in the U.K.?

We're confident in both regions. So this side of the world will grow as much. It will grow and so will the U.K. The U.K. is growing faster off a much smaller base. I'll give you a taste in the showcase that we're running next week. I think it's like 2x, maybe 3x the amount of attendees that we had 2 years ago. And so it's 50-50 split between higher education and local government, but it just shows you that the brand and the momentum, everything is going well for us in the U.K.

Okay. There being no more questions at the moment, I will turn to the formal part of the meeting. The Notice of Meeting was issued to all registered members on the January 13, 2026. I propose the notice of meeting provided to all members be taken as read.

Everyone present here today is required to have registered at the front desk. This includes shareholders, proxy holders and visitors. If you're not already registered, I would please ask you do so now with a representative from MUFG.

All proxies that have been received, have been inspected and all those validly lodged have been accepted and registered. A register of proxies received is also available. I've been advised that 563 valid proxy forms have been received, representing more than 235 million votes, being approximately 73% of available votes.

We will now go through the procedure for today's Annual General Meeting. We will be conducting a poll for each resolution at today's meeting. Shareholders and proxy holders intending to vote would have been given a yellow voting card on registration, which they will need to use at the time of voting by completing the voting card at the appropriate time, either in favor, against or abstaining on a resolution.

Shareholders that have already voted prior to this meeting will have today been given a blue card on registration. For those shareholders participating in the meeting via the online platform, you can cast your vote using the electronic voting card you received when you validated your registration. If you have any questions about casting your vote online, please refer to the online platform guide.

Those registered shareholders attending the meeting online today will have the functionality to vote and ask questions on the devices. I will consider the questions submitted online after I've taken questions from the floor on each of the motions.

Please note that visitors are not eligible to vote or to ask questions as this is a meeting for shareholders. Visitors welcome to stay and observe the proceedings. Visitors would have been given a red card at registration.

We will now move on to the items of business for this meeting as set out in the notice of meeting. The first item of business. We will now move to the first item of business today, which is to receive and consider the financial statements and reports of the directors and the auditors for the year ended 30 September 2025. The annual report, including the financial statements was distributed to members of the January 13, 2026, and has been held by the members for a time that meets the statutory period.

This is not an item that requires a vote, but it's now an opportunity for you to ask any questions that you have on the annual report. Are there any questions on the annual report in the room?

The 2.7% drop in operating margins was attributed in part to the transition to SaaS+, specifically upfront consulting income is foregone in return for higher annual revenue because the implementation costs are baked into the SaaS+ subscription price. And then those costs are spread over number of years. Can you explain a bit about that margin compression? Is it a permanent thing? Or does it bounce back later on as the contract matures?

Thank you. I think as we sell more and more SaaS+ contracts, we expect a drag on profit margin. Having said that, all within the profit guidance we've given, which is positive, just as it was when we moved from license fees to SaaS. Somewhere in the next couple of years, that bottom will bottom out, if you like, and you'll see increased margin expansion. But I've got to stress that this is a deliberate strategy to move us from one-off consulting revenue to the higher-quality annual recurring revenue, and it's all within the guidance we give, for example, which is 18% to 20% profit growth.

Any questions online, Stephen?

We've got 1 online. From Stephen Mayne. He asks, "thank you for disclosing the proxies early to the ASX and well done for receiving strong support on all items, including this remuneration report vote. Given the disruptive and potentially existential threat of AI to something...

I'm just going to stop you there. We'll do that on the rem report. That's okay?

Okay.

All right. Any other questions in the room? Okay. If not, we will move to the resolutions to be voted on.

As previously discussed, we will undertake a poll for each resolution at today's meeting. Shareholders and proxy holders intending to vote will have been given a voting card on registration, which they will use to record the vote either in favor or against a resolution. If you need assistance were completing your voting card, please ask 1 of the MUFG corporate market staff who are in the room.

I now declare the poll open. You may cast your votes at any time from now until the close of the meeting. A representative of MUFG will act as a returning officer for the purpose of conducting and determining the results of the poll. The official results of the poll will not be available by the close of the meeting. The results of the poll will be released to the market on the ASX company announcement platform as soon as they are available, which will be later today.

Given the large number of proxies that have been registered for today, we expect to be able to provide a clear indication if a resolution is likely to pass or fail.

Resolution 1 to 6 are ordinary resolutions and, therefore, require more than 50% of the votes cast in favor by members entitled to vote on the resolutions for the resolutions to be passed.

Resolution 1 is the adoption of the remuneration report. To consider and, if thought fit, pass the following resolution in accordance with Section 250R(2) of the Corporations Act: That the remuneration report is contained in the annual report, be adopted. The intention of the remuneration report is to describe the linkage between the company's strategic initiatives, remuneration principles and remuneration framework and how these in turn drive shareholder returns, continuing executive key management performance remuneration -- key management people remuneration continue to be aligned with shareholders' value creation in FY '25.

Total continuing executive, I've got to use the acronym, KMP remuneration, excluding one-off long-term incentives and short-term incentives grew by 21% between 2024 and '25. Over the last 5 years, continuing executive KMP remuneration growth has averaged 14%, while net profit before tax growth has averaged 17%. Short-term incentive outcomes across our continuing executive KMP were up 18%, driven by the 18% growth in net profit before tax. The long-term incentive plan with hurdles based on EPS growth and total shareholder return relative to a basket of technology companies resulted in 100% of at-risk LTI vesting over the same 3-year vesting period, our total shareholder returns were close to 250%. In FY '25, no positive or negative discretion was exercised by the Board in respect of vesting incentives.

In FY '26, we are making some changes to remuneration. Following a benchmarking exercises, indicating that the executive KMP were below the 50th percentile of our peer group, the long-term incentive offer has been increased. But as part of that change, the EPS hurdles for the long-term incentives will be made more challenging. In FY '25, the long-term incentives had an EPS growth hurdle where they vested between 8% and 20% growth. In FY '26, this EPS hurdle has been increased to 10% to 22%, with an increase in the opportunity to align with the 50% percentile. And the LTI hurdles have been rebalanced to 25% based on relative TSR and 75% based on that earnings per share.

Section 250R of the Corporation Act requires that the company's members vote on whether or not the remuneration report should be adopted. This vote is advisory-only and the outcome will not be binding on the Board. Please note that the directors and key management personnel are excluded from voting on this resolution. I can also confirm that any proxy vote -- votes submitted by directors and key management personnel have been excluded from the proxy count.

Are there any questions in the room on that resolution? Paul?

More a comment rather than a question. So your remuneration report largely aligns with ASX's guidelines with a few minor deviations, which we've raised previously. But this year we noted two small but positive changes. So I just want to call them out. So previously, 100% of the short-term incentive was -- short-term incentive was paid as cash. To understand it now, 20% deferred portion is now paid as equity, which is more in alignment with our guidelines. And so when shares are granted to employees, you're now buying them on market. Previously, you just issued new shares. I think all the technology companies in Australia just issued new shares. So buying them on market is much more shareholder friendly. So just congratulations on those two changes.

To continue with Stephen's question. Given the disruptive and potentially existential threat of AI to some software providers, have we inserted any specific AI-related KPIs into the KMP's incentive arrangements? Or are we planning to increase emphasis on resisting and defeating the AI insurgency in future incentive arrangements?

Yes. So we continually look at the incentives remuneration for executives. And as Paul pointed out, we do listen to what shareholders say or proxy advisers say, and we make changes where we deem them appropriate. Clearly, in terms of innovation, which is what AI ultimately is, this company is an innovation company and has been for 38 years and will continue to be. We think the management have got fair but stretched targets this year. Ed and the team are working very hard to deliver on the new guidance, and that's the way our incentives have been set up.

No further questions.

We will now vote on this resolution. The proxy votes received prior to the meeting are now displayed on the screen. I will now ask you to complete your voting card with how you intend to vote on this resolution. And from the proxies, as you can see on the screen, we expect this motion will pass.

[Voting]

I'll now move to Resolution 2, the reelection of Dr. Jane Andrews as a Director. To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Dr. Jane Andrews, who retires by rotation in accordance with Rule 19.3 of the Company's Constitution, and being eligible, be reelected in accordance with Rule 16.2 (sic) [ Rule 19.3 ] of the Company's Constitution.

I would now like to ask Jane to address the meeting and provide a brief background on herself and the experience she brings to the Board of Technology One.

Thanks, Pat. I'd actually just like to start by saying what an incredible privilege it's been to serve on the Board alongside Pat and fellow directors, both past and present, and to work with Ed and the team really has been an immense pleasure.

In terms of my background, my training is in biotechnology. I have a PhD in genetics and embryology, combined with training in finance and investment. I've enjoyed working with a number of different enterprises, and I'm attracted to businesses that use innovation to make a substantial difference to customer outcomes, and in the case of TechOne, developing compelling products to solve customers' problems.

In those kind of businesses, I'm accustomed to taking a long-term strategic view, and I recognize the need to invest in research and development, both to grow and protect market share. And also the need to take calculated risks that balance opportunity with appropriate safeguards. But ultimately, I recognize that any venture is dependent on the quality of the team running it.

In terms of my experience at Technology One, I've served on the Remuneration Committee, the Nominations Committee, and the Audit and Risk Committee since 2016. And it's been my great pleasure to chair the Remuneration Committee since 2020. I've really enjoyed the opportunity to talk to investors and proxy advisers about the company's strategy, about our governance and about our remuneration.

Although Ed has talked a bit about TechOne's philosophy of focusing on evolution rather than revolution, as a former geneticist, I'd have to say that we've evolved pretty rapidly over the 10 years I've been on the Board. Not only have we made the shift from being a legacy software company when I started to being a true SaaS business, this is an evolutionary leap and it impacted all operations for the company.

From a governance point of view, we experienced the retirement of our Founder, Adrian Di Marco. And I think we've managed very smoothly the succession first to Ed as CEO and then to Pat as Chair, and they've both been exceptional replacements.

As was touched on, our U.K. operations have taken a little longer to evolve, but we're in such a strong place now. We've got great referenceability, and we're really seeing that profitability churn now. We've made some strategic acquisitions in the form of Scientia and CourseLoop, and those have been really valuable both in terms of expanding our product depth but also providing an expanded customer base from which we can land and expand.

And as Ed has touched on, the introduction of SaaS+ has been a revolutionary business model change that derisks implementation for our customers and provides us with a recurring source of revenue. And more recently, the development of Plus, our AI-based tool and the other augmented AI products will provide our customers with a simpler and more engaging experience. So there's been a lot of significant change. And I think what's really impressive is throughout those changes, we've delivered a strong and consistent history of profit growth while continuing to invest strongly in research and development, which is, of course, as Ed said, the engine of our future performance. It's been a really exciting time, and I'm super impressed by the team and their strategic and also their operational strength.

So whilst our financial performance has been strong and consistent, it's also been really gratifying to see the team's performance on other metrics. So in 2018, we were sitting on an employee and NPS score of 1, and we've set a target of hitting 50 by FY '26. So it's a really substantial uplift. And so it's really pleasing to see our NPS score come in at 43 in FY '25, obviously well on the way towards that target. And we've also seen continued growth in diversity across the business, both at Board and management level over that time.

Shortly after I started, the TechnologyOne Foundation was formed back in 2016. And it's been really rewarding to see the significant impact that, that foundation has been able to have on the business, on our communities, delivering just in last -- over the last year, $1.2 million. And we're well on our way to achieving our target of raising 500,000 children and their families out of poverty by 2032. And we've assisted nearly 150,000 families so far.

It's been a very exciting time and a privilege, as I said, to work on the Board, and the pace of evolution isn't slowing. If reelected, I look forward to continuing our focus on delivering software that exceeds customers' expectations in terms of ease of use, security and reliability. As a shareholder, I'm really excited about the many levers of growth that we have for the future, and I'm really optimistic about the ongoing performance of the company. Thank you.

Thank you, Jane. Are there any questions in the room for Jane? Paul?

Someone else can ask questions as well. My question for Dr. Andrews. You're now the longest-serving independent director. And that time you've seen the Board composition change quite a lot, that process of Board renewal and the mix of skills and experience is very different to what was when you joined. Do you think that process is at the end now? Or is there still more work to do to change the mix of Board members?

I think we're in a really great place right now. Obviously, as time goes on, the requirements of the company will change, and I'm sure that Pat and the team will continue to look at that. But I think we're in a really fabulous place right now.

Stephen, any questions online?

We have 1 online from Stephen Mayne. He's asked, could Jane Andrews and the chair comment on whether they support the principle that public companies should release their full year results before the deadline closes for board nominations? TechOne follows this principle, but the majority of ASX 100 companies with September 30 balance states don't. Can TechOne guarantee that we won't switch to a rushed pre-Christmas AGM like that of NAB, Westpac, ANZ, Elders, et cetera?

Yes. Thanks, Stephen. Great question. Any other questions?

That's it.

We will now move to vote on this resolution. The proxies received prior to the meeting are now displayed on the screen. I will ask you to complete your voting card with how you intend to vote on the resolution. From the proxies we have, and you can see on the screen, I expect this motion should pass.

[Voting]

Resolution 3 is the election of Debra Eckersley as Director. To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Debra Eckersley, who having been appointed Director on the October 1, 2025, in accordance with Rule 19.2 of the Company's Constitution, be elected as a director of the company in accordance with Rule 19.2.

I would now like to ask Deb to address the meeting and provide a brief background on herself and the experience she brings to the Board of Technology One.

Firstly, thank you for the opportunity to address you today and provide some further background on me. So I have over 30 years of experience in professional and financial services. And my career is really being built at the intersection between finance, strategy and people. I'm a Chartered Accountant, former and current consultant and a former people and culture executive. So I bring a combination of commercial acumen, disciplined risk management and an understanding of our organizations ultimately succeed through their people.

My career started as in financial accounting and tax at EY and then PwC. Over time, though, I became increasingly drawn to the critical importance of people in organizations and their culture with the right human capabilities to deliver on ambitious strategies and the optimal culture to enable and encourage those people to operate at their best within an organization, strategic and risk settings.

I was the leader of PwC's people and change practice across Asia Pacific, and I worked with companies and boards across all sectors on some of their most challenging projects and transformation agendas, and was the Board of remuneration adviser for many of Australia's leading ASX companies. Almost 8 years ago, I left PwC and joined the Bank of Queensland as the Group Executive People and Culture, here in Brisbane. I was there for 5 years where I gained more practical experience about talent management, culture and capability development, risk management and a bit of industrial relations as well, within the context of a highly regulated industry and a company going through significant change.

As many of you would know, these organizations did experience serious failures. These experiences have given me deep insights how such failures can occur even in well-established long-term companies. And the critical importance of independent Board-level oversight of culture and risk, clear accountabilities and an open speak-up culture and of course, robust processes and controls.

I now enjoy more of a portfolio career. Currently, I serve on the Board of Chief Executive Women, where I chair the People, Culture and Nominations Committee, and on the Advisory Board of Get Skilled Access, which supports companies in disability inclusion and accessibility. I also today advise Boards and HR teams in the alignment of strategy, performance and remuneration. Through this work, I partner with companies again across all sectors, helping to align remuneration with strategy, strengthen governance and sometimes navigating sensitive people and performance matters.

Across all these roles, my focus has and is on asking the right questions, simplifying the complex and helping organizations and their people navigate periods of significant change for their sustainable future.

I've been a longtime watcher and admirer of Technology One and its people, including I have been a shareholder for about 20 years. So I have been watching for a while. Serving on the Technology One Board is an opportunity to bring my strategic and operational expertise and insights and allow me to contribute to what I see as TechOne's continuing success.

With your support, I look forward to the opportunity to work alongside my fellow directors, the executive for you, our shareholders. Thank you.

Thank you, Deb. Questions for Deb in the room. Thanks for that presentation? Paul?

You mentioned PwC and Bank of Queensland. Could you give us a bit more background about what your role was at those organizations and how you fit in with respect to the parts of the organization that were getting into difficulties?

Sure. Thank you. Thanks, Paul. So at PwC, I was a Consulting Partner. So as I said, I've led their people and change practice. From 2012 to 2016, so a fair way ago, that in those years, I was Managing Partner for Human Capital there, so on their executive, and I held HR responsibility for employees there. So not the partners, but the employees. I wasn't in the tax practice where those breaches occurred, and I certainly wasn't aware of those -- that leak.

I left the firm in 2018, so almost 6 -- sorry, was that almost 8 years ago now. And 5 years before that scandal became public. At Bank of Queensland, I was there from 2018 to 2023, and I was the Group Executive of People and Culture, as you would have seen in my bio. I left there in 2023, need to say of my own volition. I left. And there were first full undertakings announced in that year. My departure was part of the plan to transition to what I'm doing now really. There's no doubt those experiences have influenced me as a Nonexecutive Director now.

And so maybe I'll just call out kind of three things that I learned from that. Firstly, that culture is what you tolerate. It's not the words on a poster. It's what you tolerate day-to-day. And culture is certainly more than HR programs. Boards, every Board has looked a lot beyond what's stated and actually get underneath whether the spouse culture is actually what's being lived every day.

Secondly, I would say that open 2-way dialogue and debate is actually really critical in any organization and people being feeling free to speak up and raise issues is critical and that the quality and stability of leadership, whether that be the executive or Board level is really a driver of this.

And then thirdly, I would say that risk culture is -- requires diligence from all of us, led by the executive and with oversight for the Board. So I think those experiences, even as I said, I left PwC a long time ago now, really kind of practical experiences that I've had that are more than theoretical about what can go wrong. And so I do absolutely understand the importance of asking uncomfortable questions really to understand what's really going on. Stephen, any questions online?

And well done buying TechOne shares 20 years ago.

I have to thank my dad for that. I think he recommended it. So I'm glad I took his advice once in my life, yes.

Stephen, any questions online?

Yes, we have 1 here from Stephen Mayne, and it's basically 3 questions in one. The first part is which recruitment firm assisted with the search that led to Debra and Philip's appointment to the Board? And secondly, what sort of board processing -- onboard process did we run for them? And did they know any other directors before they were appointed?

So the firm we used is confidential. So I'm not revealing that. I was actively involved in the recruitment process of Deb. Deb did know Jane professionally prior to joining this Board.

And the third question was in terms of onboarding. We can have a chat over coffee, Stephen, but the same way, most directors are onboarded on the company's I chair, which is active engagement with the executive, with the other directors and speaking and meeting with anybody they want whenever they want to.

Any other questions?

That's it.

We will now vote on this resolution. The proxy votes received prior to the meeting are now displayed on the screen. I will ask you to complete your voting card with how you intend to vote on this resolution. And as you can see from the proxies we have, I expect this motion should also pass.

[Voting]

Resolution 4 is the election of Philip Davis as a Director. To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Philip Davis, who having been appointed a Director on the October 1, 2025, in accordance with Rule 19.2 of the Company's Constitution, be elected as a director of the company in accordance with Rule 19.2. I would now like to ask Phil to address the meeting and provide a brief background of himself and the experience he brings to the Board of Technology One.

Thanks, Pat, and thank you all for the opportunity to introduce myself today. My career spans the last 35 years focused solely on the technology industry. It's a journey that's taken me from engineering foundations in California, as you can hear by the accent, not from around here, to leading global operations for some of the world's most influential AI, Cloud, software-as-a-service and infrastructure companies. I'm an engineer by training, graduated with an Electronic Engineering Degree from small public university on the Central Coast of California, Cal Poly, San Luis Obispo. And also minored in speech communication, which is not something you usually see an arts and an engineering degree kind of combined with 1 another. But I actually think that unique combination laid the groundwork for my career long focus on bridging the gap between complex technical subject matter and clear strategic execution.

In my early years, including a first job washing dishes in my hometown of Fresno, I was instilled a deep value for hard work, for humility and the importance of teamwork. And I don't care if you're running a restaurant or you're running a multi-hundreds of millions of dollars of business, if you don't execute as a team, it's ultimately the customer that feels that. And it's 1 of the things I love about Technology One is the customer centricity.

I began my professional journey in the semiconductor industry in the Silicon Valley with Texas Instruments before being lured into the high states world of pre-IPO companies. I had the opportunity to be at 4 different pre-IPO companies. I went to 1 and we promptly went public on the NASDAQ. I thought that's pretty cool, pretty easy. I followed the CEO to a second one, and we promptly ran out of money. And so maybe it's not also easy and so fun. But I did go to 2 other ones, which both were acquired by much larger companies. And I think that founder lens experience was really pivotal. And that taught me to scale businesses rapidly, navigate the risks of hyper growth, and the necessity of building products that solve real-world customer problems.

From there, I transitioned into executive technology leadership roles at global scale, at Dell and Hewlett Packard Enterprise and managed multibillion-dollar P&Ls and led massive transformation, most notably at Hewlett Packard Enterprise where I was President of the Hybrid IT business unit that was a $24 billion global business unit end-to-end with 45,000 people on the team. So pretty big scale. And I helped lead our shift more and more towards software-defined infrastructure. The last several years, my focus has been on the forefront of the cloud revolution, a leading Amazon Web Services for Asia Pacific and Japan based out of Melbourne, where my wife is originally from, and then most recently serving as Vice President of Google Cloud.

I've had a front-row seat to how Cloud and SaaS are democratizing technology for organizations of all sizes. Living and working in Singapore for a decade give me a true international perspective on market diversity and the critical role of innovation in terms of driving global outcomes.

My philosophy as a leader and a director is really, I think, kind of centered around 3 pillars: one, empowering diverse teams. I'm passionate about the idea that diverse perspectives, diverse backgrounds, diversity of thought, are really critical to getting better outcomes and better answers. Customer obsession, like the addressed references multiple times, I believe, in outcomes that provide general value to the -- genuine value to the customer, ensuring that every strategic investment is aligned with the customers' long-term needs and then balanced governance. I've seen both cases where you've had have for scale and it's been successful. And then you've invested too much in the revenue didn't come, and it didn't work out. I think a balance that is -- like that is especially critical as we move into the era of artificial intelligence.

On a small personal note, I joined the other 4 members of the Davis family and became an Australian citizen in July of last year, and that's a tremendous honor to be a part of the Australian community. Joining the Technology One Board is a wonderful opportunity to blend my background in global operation scale and my expertise in SaaS, AI and Cloud strategy, and I look forward to working with the executive team to ensure we continue to solve complex problems for our community while driving sustained long-term growth for our shareholders.

Thank you, Phil. Any questions from the floor? Paul?

You've got a very impressive resume there. Can you give us some specific insights into sort of things you've learned at those mega tech companies. So in sort of the guidance you might give to the Board and executives about how TechOne navigates the current turbulent times finds itself in with the threat of AI, which has done such a good job of refuting?

Yes. I think one is, when you look at the last 35 years in the technology industry, we've seen these massive inflections. And some companies have actually gone to new heights as a result of that and some have gone the way of the dinosaur as a result of that. And I think what's important in those is working backwards from what the customers are trying to solve. And it's the companies that embrace those new technologies or capabilities to better solve customer problems that are going to win.

I'll give an example where you go back 25, 30 years ago, everybody had on-premises infrastructure. And it was painful, right? You had to go procure a server, you had to procure software, procure networking, then somebody had to configure it, manage it and then you had to cybersecurity. The reason SaaS won as a model is all that went out the window. You didn't need to do that anymore. And software companies that didn't make the move to SaaS aren't real relevant today. And I think the same is going to happen with AI, right?

The reason customers are embracing AI is that nobody wants to type on 52 different screens and learn the command line interface of every software package. What they want to do is it's like Star Trek, right? They want to talk to the software and just have it go do things. And that's why I'm so excited about what we're doing in terms of embedding AI and everything we're doing because I think that's what customers want. They want to be able to just interact with like you and I are right now.

Okay. And a follow-up question. The annual report says you didn't have any shares in TechOne when you joined. Have you been using the recent price correction to establish a holding?

I don't even know what I can answer on this question. I'm bullish on the company, and we'll make sure I come up the withholding requirements well in advance of the 36 months.

Any other questions in the room? Stephen, any questions?

No questions online.

We will now vote on this resolution. The proxy votes received prior to the meeting are now displayed on the screen. I will now ask you to complete your voting card with how you intend to vote on the resolution. And again, from the proxies, you can see we expect this motion should pass.

[Voting]

Our second last resolution, Resolution 5, is the approval for increases in directors' fees. To consider and, if thought fit, pass the following resolution as an ordinary resolution: That the maximum aggregate amount or value available to be paid or provided as remuneration of the nonexecutive directors of the company for any financial year from and including the financial year ending 30 September 2026 be increased by $500,000 from $2 million per annum to $2.5 million per annum.

The current director fee pool of $2 million was set 3 years ago. The Board believes that the proposed increase in the director fee pool is reasonable for the following reasons. As the company has grown to become an ASX 50 company, the increase allows us to attract and retain the caliber of directors required to ensure appropriate expertise and skill levels on the Board. The company now has an independent nonexecutive director, being me -- sorry, Nondirector Board Chair being me, and consists entirely of independent Nonexecutive Directors. 3 new Independent Directors have been appointed in recent years, which now allows only a small capacity remaining within the existing directors fee pool. The proposed increase to the fee pool is consistent with the recent shareholder approvals obtained by other ASX 200 companies.

As the directors have a personal interest in the outcome of Resolution 5 that make no recommendations as to how the shareholders should vote on this resolution.

Are there any questions in the room on this resolution? Paul?

You've explained the rationale behind the increase in the pool and it all makes sense. And also you can only ask for an increase every 3 years. So I understand why you'd ask a big jump, but 25% seems like a large increase. Do you think that's successive?

Do I think it's excessive? I wouldn't recommend a successive, Paul. So it's bit of a louder question really. I mean we've done our work. We've shown you the benchmarks against other companies. You follow a lot of other companies. And I'd like to think that the shareholders have heard from a number of directors today and can see the quality of the directors before them.

Stephen?

No questions online.

We will now vote on this resolution. The proxy votes received prior to the meeting are now displayed on the screen. I will ask you to complete your voting card with how you intend to vote on this resolution. And from the proxies we have, again, we expect this motion should pass.

[Voting]

Our last resolution is Resolution 6, which is the grant of awards to Ed as the CEO. To consider and, if thought fit, pass the following resolution as an ordinary resolution: That approval be given for all purposes for the grant of equity awards to Mr. Ed Chung, the company's CEO and Managing Director, under the TechnologyOne Omnibus Incentive Plan. Rules are set out in the explanatory notes to this notice of Annual General Meeting.

If shareholder approval is obtained a deferred STI equity rights and the LTI options will be granted to the CEO within 5 business days of the company's AGM. If shareholder approval is not obtained, then the above equity awards will not be issued and subject to the achievement of the performance conditions described in these explanatory notes, the CEO will receive a cash payment equivalent in value to the equity award he would have received at shareholder approval being obtained.

The purpose of the STI and LTI equity awards are to assist in retaining high-performing executives, help further drive long-term management alignment with shareholders, fostering a long-term mindset among executives and ensure ongoing management values and behavior alignment. Prior to vesting, the Remuneration Committee considers whether there are any irregularities or other factors that would affect the payment or vesting of that award, potentially utilizing the mouse provision or generally exercising discretion.

Are there any questions in the room on this resolution? Any questions online?

We have one question online from Stephen Mayne. He's asked, could the CEO summarize his past LTI grants as to whether they have vested or lapsed? Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? He's requested us not to say don't just look it up in the annual report. He said it's complicated, and the CEO could actually summarize the situation in 60 seconds as we saw earlier today, Ed loves to talk, and it's right across all the details. So let's hear his experience.

Given the last remark, maybe we won't answer the question, but go ahead, Ed.

The significant amount of my wealth and my family's wealth is in TechOne stock. And it has come through the time I've been here in TechOne all the way from 2007. I can't remember other parts of the question. I have got those stocks as part of the long-term investment in TechOne -- LTI plan in TechOne?

Any other questions? Stephen?

No further questions.

We will now vote on this resolution. The proxy votes received prior to the meeting are now displayed on the screen. I will ask you to complete your voting card with how you intend to vote the resolution. And once again, based on those proxies, we expect this motion should pass.

[Voting]

I'm conscious we've been here for a little bit longer than other years, but I would like to offer to the floor. Are there any other questions that we haven't given people a chance to ask today on any topic you would like to raise? Are there any other questions online?

Yes. Pat, we have one online from Stephen Mayne. He has asked, "he was surprised when the Chair fail to deliver Chair address today and the CEO was on his feet for 55 minutes starting just 5 minutes into the CGM -- into the AGM. The 3 director candidates per election day gave longer speeches than the Chair did. Some of Pat's answers have been excessively brief. As a Chair of 3 major public companies, why is Pat so reluctant to speak at AGMs? And will the new Director, Phil Davis, encouraging him to speak more at next year's AGM?

Thank you, Stephen. I'll prepare an hour speech for next year, so we could all come please, prepared for the bathroom stops and get those out of the way early, that would be great. If anybody would like me to speak, I'm happy to speak as much as you want, but thank you all for being here.

Can we now complete your yellow voting card, if you've not already done so, as we'll be closing the poll at the end of this meeting. As you leave the meeting, please place your voting card in one of the ballot boxes. Voting online on all items will close in 5 minutes. So effectively at 12:30. So if you've not done so already, please submit your electronic voting card.

As mentioned, the official poll results will be published to the market via the ASX company announcements platform as soon as practical, which is expected to be early this afternoon. I would like to advise the meeting that we will retain the proxies and voting cards from this meeting for a period of 6 months, after which time they will be destroyed unless there is a reason for them to be kept longer.

Before I close the meeting, I would just like to reiterate a few things that Ed touched on. Firstly, to the management team and all of the staff at Technology One, you do an outstanding job and your continued support and enthusiasm is very much appreciated by the Board. I would like to acknowledge and thank my fellow directors for their hard work and look forward to working with Deb and Phil as our new directors on the Board.

I would like to thank you, our shareholders, for your continuing support and faith. Believe in what's good. We are a highly integrated strategy. Our current momentum and technological vision and our strong financial position puts us in a really good place.

For those of you here today, I invite you to join me, my fellow directors and management for refreshments in the foyer outside. And for those shareholders and visitors attending online, we are pleased that our technology enabled your attendance today, and thank you also for joining us.

I now declare the meeting closed. Thank you all.

Ladies and gentlemen, thank you for standing by, and welcome to the Technology One Full Year Results announcement. [Operator Instructions]

I'd now like to hand the conference over to your host today, CEO, Mr. Edward Chung. Thank you, sir. Please go ahead.

Good day, everyone, and thank you for the introduction. Today I have Stuart MacDonald, our COO; and Cale Bennett, our CFO, with me today. Welcome to our 2025 results presentation for the full year. These materials were also lodged with the ASX this morning. Today I'm going to take you through the highlights of our results. Cale will then take us through the detailed financials; followed by Stuart, who will take us through our significant achievements. Then I'll provide an update on building the future and our long-term outlook and our outlook for FY '26.

For the 16th consecutive year, we've delivered record ARR, record revenue and record profit, and we beat our guidance that we set in May this year. Our ability to deliver these results for the last 25 years as a listed company and, in fact, since inception in 1987, is due to our clear vision, strategy, culture and ongoing investment in R&D, which is highlighted in our leading average total shareholder return over this 26-year period of approximately 16% per year, 4x greater than the ASX 200 total shareholder return over that same period. We started the year celebrating 25 years on the ASX and finished it off by being admitted to the ASX 50 index.

SaaS+, our game-changing offering, which combines our vertical-specific and mission-critical SaaS ERP and implementation with the fastest implementation times in our market, delivered. It's fueling our growth. Together with our significant investments and highlight for the year, was the U.K., and our team's grit and determination over many, many years to take on the established players and win has resulted in ARR growth meeting our expectations, up 18%. This has, in turn, enabled us to deliver PBT growth of 19% to $181.5 million.

Those that follow us know that we surpassed $500 million ARR in the first half of FY '25, 18 months earlier than planned, an incredible achievement for our company. But more importantly, we've set a new long-term target, an ambitious target, of $1 billion plus ARR by FY '30.

I want to remind everyone of our strategy because it's this strategy which enables our strong, consistent growth. We exist to make life simple for our community, and it's very powerful and meaningful to us and our customers. And you'll notice there's nothing in there about ERP software. It's because it's about what [ ERP ] software makes possible. We take the complexity out of ERP and turn it into clarity. And this enables our customers to do their job even better: councils reinvesting in roads, housing and services; universities delivering world-class student experiences and world-class research; and for government, health and community services; and asset-intensive industries. All of these essential industries operating better, scaling faster and serving more. Every innovation we deliver puts more resources, more time, more money back to where they belong.

Our passion is to solve the complex. We don't do easy. Otherwise, everyone would be doing it. ERP is hard. Student management and property and rating, which is the mission-critical products for higher education and local government, is hard. And we're one of only a handful of vendors worldwide. Payroll is hard. The Power of One is hard. Moving an entire customer base of 1,300 customers from on-premise to SaaS without skipping a beat is hard. Rewriting an entire code base 4x over the last 38 years is hard. And some people say that SaaS+ is impossible. My point is, when you add it all together, there is no one doing what we do.

And we create mission-critical products and solutions that power local government, universities and TAFEs, governments, hospitals, large infrastructure providers. They are our community. And our team choose to work here rather than any other company. Our staff work here and they love it, because they live and work and play in the communities they serve. They have a really deep connection.

Our core beliefs are our non-negotiables, and they underpin our strategy. And our strategy hasn't changed dramatically over the last 38 years, but how we execute this strategy evolves quite a lot as we respond to shifts in technology, feedback from our customers, competitors and the market generally. And it's this clear strategy that resonates with the market and it's 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 their business. It's why they stay with us forever and what fuels our consistent, strong growth. And you see this in our ARR growth.

Now here are the major elements of our strategy. The first is one experience for our customers. We believe in a fully integrated ERP solution. We provide very deep and broad functionality. In 1987, we started with 1 product. In 2008, we had 11 products. And today, we've got 20 products with over 500 modules, and we continue to invest in even more functionality for our customers, all on one platform with one user experience, one upgrade path, one security posture, one source of the truth.

No one comes close to our focus and commitment to our vertical markets. We have the deepest functionality for our vertical markets. We are hyper-focused on just a handful of industries and we're not all things to all people. And we bring 38 years of sector-specific knowledge, which is built into our products and our solutions.

We compete and win against the best-of-breed players. We're ERP, but much, much more. In short, we never follow the standard path. We don't fight in the red ocean. We create the blue ocean by having ERP for core, defined vertical markets. And as I said, these are mission-critical products and best-practice solutions which power universities and TAFEs, local governments and governments, hospitals, large infrastructure providers.

And we're an innovation-driven company and we believe in evolution. We leverage new and emerging technology at each generation for our customers. And we invest in the range of 20% to 25% of revenue every year into R&D. And this has equated to over $1 billion of investment into our ERP, into our products and into our modules. And we have a track record for investing in the future. And the success we're having now comes from the R&D investments that we made over 5 years ago.

Our fourth generation ERP, we call it CiA, is available any device, anywhere, any time. And as I said, we've successfully reengineered our whole ERP, not once, but 4x over the last 38 years. Think millions of lines of code.

And finally, this fourth generation has the highest level of security accreditation in the industry. We provide the most trusted SaaS platform. We are the first global SaaS ERP provider to achieve IRAP Protected. No carve-outs to any of our products or modules. And we know it's not feasible for any individual organization to keep up with the increasing costs and complexity of cybersecurity unless they've adopted a SaaS-first strategy. We spent hundreds of millions of dollars building the world's most trusted SaaS ERP that's secure, reliable and efficient. And we're going to continue to invest millions of dollars to set the bar higher each year.

Now with the Power of One, we build, market, sell, implement and support our SaaS ERP for 1,600 customers globally. And for us, the Power of One is special and it's unique. Firstly, it's a big IP engine. At every stage, we get feedback from our staff and our customers, and we make the product better. We have a direct relationship with the customers. We own that customer relationship.

And we all know ERP is hard and it's complex and there will always be issues from time to time. And in the old model or the traditional model of a separate vendor and a separate implementation partner, when things go wrong, the implementation partner blames the vendor and the vendor blames the implementation partner. And it's the customers that are impacted. Now with the Power of One, we are 100% accountable for our customers' outcomes. And it's one of the reasons we maintain 99% customer retention over the last 38 years.

Now SaaS+ is a game changer in our industry. For us, it's the next logical evolution of SaaS where TechOne delivers the entire outcome faster with minimal risk and a single annual fee to our customers. SaaS+ delivers faster time to value as we continue to dramatically drive down implementation time frames, removing the need for traditional long, drawn-out and risky implementations.

Our goal is to deliver ERP in 30 days, not the thousands of days like the traditional systems integrators. And through the Power of One, TechOne is the only SaaS ERP provider able to deliver on this compelling proposition because we own all parts of the value chain, with our mission-critical products, our industry-specific IP built up over the last 38 years and our own in-house, highly skilled and talented consulting team.

We've invested over $1 billion in our ERP today. And the success we're having today comes from the investments we made 5 years ago, and the success we'll have in the future comes from the investments we are making now. And when you think of game-changing technology, a few things come to mind, iPhones changed the market for mobile phones. Tesla changed the market for vehicles. Uber changed the market for how to grab a cab. And now we've got AI and TechOne is changing the market.

We have 2 not-so-secret secret weapons. The first is SaaS+. No one can do what we do, because as I said, we have industry-specific and mission-critical software that leverages our deep experience and IP in very specific markets like local government, higher education and government, and our own talented in-house consulting team, all in one fee, with the fastest implementation times in the market versus the traditional plain-vanilla ERP without mission-critical software for anyone and the system integrators or the Big 4 who are motivated by billable hours and making implementations longer.

And number two, technology is moving faster than ever, especially in the age of AI. We're at cutting edge and the leading edge of the next evolution of ERP. We launched Plus in our October showcase. And the customer feedback, it's been phenomenal. An independent researcher, who we know, said to me at one of the showcases that we've totally leapfrogged the competition. With Plus, we know we're on the winner, and we're going to talk about that later. So when you have SaaS+ and Plus together, we create significant value for our customers, and that translates into significant value for TechOne.

And these investments enable us to continue to double in size every 5 years. Our addressable market is huge and growing. Today we have over $554 million of ARR, and that new long-term target of $1 billion plus ARR by FY '30. And you're going to hear me say over and over, SaaS+ is a game changer and it's powering our growth, and Stuart is going to get into a lot more detail later. As a result, our outlook for FY '26 is also strong.

Now in FY '25, we delivered strong profit and ARR growth, beating our guidance. And an increasingly common metric to assess SaaS companies is the Rule of 40. And the Rule of 40 typically measures recurring revenue growth and cash profit margin. However, there's really no strict definition. And in fact, many companies use slight variations of the Rule of 40. And we got some feedback recently that the more correct method is to use our ARR growth percentage plus our pretax free cash flow margin. Previously, we conservatively used post-tax, which means our Rule of 40 result is even better.

Now, strong profitable growth is nothing new to TechOne. And you can see for the 12 months to 30 September 2025, we recorded a Rule of 40 result of 59. And that puts us in the top quartile globally against our software peers. And because it's common metric and we're going to be measured on it anyway, we've added it to all of our metrics. And importantly, we expect to remain in top of class, which is above 40.

Cale will now take us through the detailed financials.

Thanks, Ed. Once again, we are incredibly proud of the results we have delivered in FY '25. SaaS+ continues to resonate with the market, driving a strong top line with ARR up 18% to $554.6 million after surpassing the $500 million mark at the half. We have also delivered another strong sales result in the U.K., with U.K. ARR up 49% and U.K. new sales ARR up 52%. SaaS and recurring revenue is up 19% to $553.2 million. Recurring revenue represented 91% of total income in FY '25.

At the PBT line, we beat our guidance of 13% to 17%, to deliver 19% PBT growth to record $181.5 million in FY '25. With such a strong result and great confidence in our future, our Board has determined a final ordinary and special dividend of $0.30 in aggregate, to take the total dividend to $0.366, up 63% year-on-year. More on that shortly. In all, we have met or exceeded our expectations across all metrics in FY '25, an unequivocally strong result.

I'll now take you through the financials, beginning with the income statement. Profit before taxes increased 19% to $181.5 million, another record for the business and ahead of our guidance given at the half of 13% to 17% growth. SaaS and recurring business grew 19% to $553.2 million in FY '25. Total income was up 18% to $610 million for the year. Traditional new project consulting revenue was up $6 million in the year as our team continues to deliver on the backlog of T&M work previously sold.

Total expenses grew 18% to $428.5 million, primarily driven by SaaS platform costs and investments in people. We have undertaken modernization efforts during FY '25, which has necessitated increasing infrastructure costs as we ran new and old side by side. We do not expect similar run rate increases in future periods. Our net capitalized R&D costs are up 28% or $6.9 million as our R&D team pushed hard into showcase, getting Plus and in-product AI use cases live.

When we began the SaaS+ transition, we indicated we would be mindful of the impacts on profitability. With SaaS+ now being our default go-to-market motion globally, the investment in our long-term strategy has equated to 2.7% of margin in FY '25, which is the equivalent of $17 million of revenue foregone. This has resulted in a PBT margin consistent with last year at 30%, but we remain convinced that our SaaS+ strategy will deliver in the long term and our focus on increasing the PBT margin to 35% remains unchanged. In the meantime, as previously communicated, we will continue to deliver profit growth.

While profit before tax was up 19%, net profit after tax was up slightly less at 17%. The effective tax rate for the year was 24%, up from 23%, primarily driven by the growth in our R&D tax incentive claim being lower than our profit growth. Given the quantum of profit increases, we believe the tax rate will trend towards an effective tax rate of 25% in future periods.

Turning to the balance sheet. Cash and investments have increased 15% to $319.6 million over the last year. This strong cash uplift year-on-year was despite an outflow of $44 million for the CourseLoop acquisition and $30 million spent acquiring 750,000 shares on market for the employee share trust. As I mentioned at the full year results last year and again at the half year results, cash flow was assisted in FY '25 by creditor payments brought forward into FY '24 in the order of $20 million. That is evident in the increase in trade payables change year-on-year. In all, a strong uplift in cash during the year.

Deferred revenue has increased by $48.1 million, consistent with our business growth and annual and advanced billing schedule. Net assets have increased $71.4 million over FY '25 to $450.7 million.

Throughout our history, TechnologyOne has consistently invested in R&D to enable us to deliver the most impacted products to our customers. As anyone who has attended our showcase knows, FY '25 was a special year. We invested 25% of total revenue or $153.7 million in R&D in FY '25, with 55% or $84.4 million capitalized. This is at the top end of our optimal range as our R&D pushed hard to deliver our artificial intelligence product enhancements and Plus for showcase. This was in addition to continued product development and investments in SaaS+ and ERP in 30 Days.

Our acquisition of CourseLoop also added to our R&D spend as we integrate their operations. Going forward, we expect to target R&D investment in the 20% to 25% of revenue range, which we continue to believe is the optimal investment level.

On to the cash flow now. In FY '25, free cash flow generated was $184 million, up $65 million or 55% on the PCP. In addition to the increase in our profit before tax, our working capital position improved by $46.8 million due to our annual and advanced billing growth and the benefits of the pull-forward creditor payments into the previous corresponding period. This hasn't been repeated in FY '25. This provided a tailwind to our Rule of 40 in the order of 5 points.

Our income taxes paid have increased in the year, in line with our tax rate and profit growth from previous periods. The investment and financing activities include both the cash outflow for the CourseLoop business of $43.7 million and $30.4 million paid to acquire share in the employee share trust, our capital management initiative announced last year.

TechOne's balance sheet is very strong with no debt and a significant cash position. High levels of recurring revenue, strong cash flow generation and a strong new business pipeline provide us with confidence in the future.

In FY '24, we outlined 3 paths we are taking to improve certainty and evolve our approach to managing our capital base. Firstly, our dividend payout ratio was set to 55% to 65% of NPAT. Secondly, we reiterated that we were looking at IP-related acquisitions, and acquired CourseLoop, a class-leading curriculum management solution to build out our OneEducation offering. And finally, we announced that we will begin purchasing shares on market through our employee share trust to satisfy staff equity issuance requirements. In FY '25, we spent some $30.4 million purchasing 750,000 shares. And we expect to spend more in FY '26.

As our business continues its positive path, we will evolve our approach to capital management, maintaining a disciplined approach to balancing the needs and opportunities of the business with rewarding shareholders. Given our outstanding year, confidence in the future and significant capacity on our balance sheet, the Board has decided to reward shareholders by determining a special dividend of $0.10 per share in addition to the final ordinary dividend.

With confidence in our trajectory and healthy cash generation, the Board has decided to lift the ordinary dividend payout ratio from 55% to 65% to 65% to 75% of NPAT in future periods. We are incredibly proud of our results in FY '25. Our Board has determined a final ordinary dividend of $0.20 per share, in addition to the special dividend of $0.10 per share, both of which are franked at 65%. This puts our total dividend up 63% for the year to $0.366 per share. We are extremely pleased that our ongoing success enables us to continue rewarding our shareholders incrementally.

I'll now hand over to Stuart to take us through some of the notable achievements in FY '25.

Thanks, Cale. Our strategy is delivering exactly as we expected. By offering 20 best-of-breed products within the world's only true SaaS+ platform, purpose-built for the verticals we serve, we've created a competitive advantage that continues to resonate deeply with our customers. As you can see from this slide, our growth is broad-based and accelerating. Every vertical is performing well, with 3 delivering double-digit growth. And our 2 largest verticals of local government and higher education are leading the charge, growing at 22% and 24%, respectively.

And what makes this particularly powerful is that our market penetration in any single vertical remains below 15%. That means there's still significant headroom for sustained expansion. We are only just getting started.

At the half year, I promised to put the U.K. front and center at the full year results. And I'm proud to say that the team has delivered beyond our expectations. The U.K. achieved 52% new ARR growth, an extraordinary performance that reflects not only strong execution, but also the strength of our brand, our platform and the people that are in this market. That momentum is being driven by a fully localized team of 185 exceptional people, achieving some of the highest employee and customer NPS scores across the entire company. The U.K. also holds the largest number of referenceable customers of any region, a clear signal of deep customer trust and satisfaction.

The U.K.'s a relentless focus on customer outcomes is exactly why we pioneered SaaS+ in this region 3 years ago. That decision has reshaped the entire business. SaaS+ is now our global standard; it is clearly the competitive edge. No other vendor in our market can match the certainty, speed or success we are delivering with this model. The combination of the team's discipline, world-class delivery and the technology that is years ahead of the competitors is elevating our brand to be the benchmark others are trying to chase.

I'll share with you 2 key wins shortly in the U.K., but the message is very clear. This isn't just another strong year. It's another step in building a foundation of sustained, compounding growth well into our future.

Out of the more than 250 wins at the half, I'd like to highlight 3 briefly. Our strategy has always been consistent: start small, prove success and build momentum into larger, more complex customers. In the U.K. local government sector, we began with the counties and the districts, becoming the partner of choice by consistently delivering successful projects. About 4 years ago, we took this momentum and began working with the unitary councils, bigger, more complex organizations. And today I'm pleased to say we now have more than 10 unitaries that are SaaS+ partners.

The final stage of this strategy has been reaching the London boroughs. And not because of their size, but because of their purchase power and their sophistication to choose the best. I shared with you at the half that we won the London borough of Islington, the largest borough in London. Now less than 6 months later, I'm proud to announce that we've continued this momentum within the Royal Borough of Greenwich, with more than GBP 300 million in annual revenue and one of the largest growing boroughs in all of the U.K.

This steady, deliberate approach: starting small, scaling up, staying focused on vertical specific SaaS+, continues to validate our model. It's proof that a disciplined growth and exceptional delivery is much better than any hype and complexity over time.

If you look at the University of Hertfordshire, they've been a long-standing partner for more than 15 years, utilizing our finance and timetabling and scheduling solutions. They were also one of the early partners in helping shape our new Plus platform. Early this year, they went to market to replace Ellucian, whose product couldn't deliver the functionality and reliability they needed for a university of their size with more than 32,000 students and among the fastest-growing universities in all of the U.K.

We are proud to confirm that we've now been selected for the student management solution, not just for its depth of capability -- its defense and depth security and its technology, but because they saw the strength of our roadmap and the power that comes from a full ERP integration. That decision makes Hertfordshire our sixth university in just 2 years. And it's another clear signal that the scale and success of our SaaS+ model in the higher education sector is accelerating fast.

Now if we look at local government in Australia, Central Coast Council in New South Wales is a great example. It was a council that was under financial distress for more than 4 years, running multiple disconnected solutions, including Infor. They went to market looking for a single, consolidated partner to modernize their operation and stabilize their organization. And we were the clear choice, winning a $4.8 million annual recurring revenue contract that brings together the majority of the products under their stack to support both their recovery and their long-term growth.

Our history is defined by bold, aspirational targets that drive our focus and underpin our success. The 2 metrics that show this clearly reflect our strategic focus and how we measure performance. Best practice in our industry for net revenue retention ranges between 115% and 120%. And once again, we are firmly within this benchmark, achieving an impressive 115% this year. It's important to note that sustaining an NRR of 115% annually over 5 years alone doubles the size of the company. Highlighting this metric is a critical component of an ERP strategy.

Secondly, and I think most impressively, our churn rate is 1.2%, remaining within target range and continues to be one of the lowest globally in our industry. Once again, it validates our strategy, focus and investments and executing are all working.

For more than 6 years, we've been leveraging AI within our product suite. And we've said for many years, we've been actually using AI inside our products for a long time. As previously highlighted, we've been using AI to benefit our community. We've been leveraging cameras on buses and garbage trucks to look at variations of field to generate work orders.

We've also been providing, for more than 6 years, products inside our software suite that are leveraging AI. For an example, our expense claim suite. We've never really highlighted the fact of using AI because we didn't see the need to do so. But as a result of the work we've been doing for the past 2 years, we will look at new ways of both leveraging our end-products as well as building new products that can leverage this AI.

We looked at how to leverage AI in 2 phases. One, leveraging the 19 products we have, finding better, more efficient ways for which our customers can achieve outcomes. And then we looked at ways of leveraging AI tools across the full operations.

We've evolved and grown our products, from 1 product in 1987 through 11 products in 2008, to 20 products today. Each product has over 20 modules. That's well over 500 modules in total. As we announced in showcase in October, we will be embedding AI functionality within the 19 products we serve with the release of our 26A. That will be the start of the release that will continue for years ahead. That will be the point where -- there will be a point where every single product will have AI included inside them, therefore, enabling faster outcomes, more efficiency and greater cost effectiveness for our customer base.

At showcase, we introduced something truly transformational: our 20th product, Plus. Plus isn't just another feature or module. It represents the future of enterprise software. The beginning of our fourth -- sorry, our fifth generation of ERP. It's the first system design not just to record and report, but to think, learn and advise. It understands every aspect of the customer's organization: their people, their process, their performance. And it responds in real time. It identifies trends, highlights risk and recommends actions before they even surface.

It's a digital twin for the enterprise, one that supports leaders every day through natural conversations. No screens, no clicks, just a conversation. With Plus, we're not just redefining ERP; we're reimagining how an organization works. This is the next frontier in enterprise intelligence, built entirely within the TechOne ecosystem, a world where the systems finally work for you.

Our goal with Plus was simple: to put in the hands of every TechnologyOne user. We wanted every customer to experience the power of this product to dramatically improve the efficiency of their operation and, in turn, deliver better outcomes for their community.

To achieve this, we've commercialized Plus different. We remove the complexity that is holding many organizations back from embracing AI, particularly the confusing token-based model dominating the market today. In most AI platforms, usage is priced per token, effectively [ salable ], which means costs are unpredictable for large complex requests. That doesn't work well for our customers. Governments, universities, hospitals and essential infrastructure providers, they need clarity, predictability, trust in their commercial agreements.

And so we created a whole new model. For Plus, we price on conversations. And for in-product, we price by interactions. Whether the interaction invokes 10 tokens, 10,000 tokens, our customers are charged a single fee, predictable amount, seamlessly bundled into their ARR contract. This model is unique to the market. It removes all that commercial risk. It encourages widespread adoption, and has been exceptionally well received by our customer base. It's simple, elegant way to make AI real, accessible and valuable, at scale.

Our diversified strategy is delivering exactly as intended. With our mission-critical software, SaaS+, ERP in 30 Days and our continued investment in R&D, we're not just delivering growth, we're shaping the future of the enterprise software. Products like Plus demonstrate how deep our sustained innovation translates directly into performance and the confidence of our long-term growth.

These R&D investments are long-term strategic commitments. They empower both new customer acquisitions and net revenue retention, enforcing the durability of our model. And none of this would be possible without a world-class R&D team, a group defined by creativity, technical excellence and the unrelenting drive to solve the hardest problems for our customers and community. Their work is the engine behind our growth, and we are enormously proud of what they continue to achieve.

I'd like to hand back to Ed.

Thanks, Stuart. So to wrap up the result, quite simply, SaaS+ delivers. We achieved a year of record ARR, record revenue and record profit. Total ARR up 18% to $554.6 million, U.K. ARR up 49% and new sales ARR up 52%. The flywheel continues to turn.

Profit before tax to $181.5 million, up 19%, beating the guidance we set in May of 13% to 17% growth. This has enabled us to continue our strong R&D investment for future growth of $153.7 million, up 20%. And with a strong balance sheet, strong results and confidence in the outlook, a record total dividend of $0.366 per share, up 63%.

Now let's bring our focus to the outlook. Our focus is to maintain our strong momentum well beyond the $500 million ARR and to continue to double in size every 5 years. It's why we invest in R&D, for the long term, to continue to build platforms for growth, new products, new modules and new offerings. We achieved our last goal of $500 million ARR 18 months earlier than planned, and we set a new long-term goal of $1 billion plus ARR by FY '30. And we're well positioned for future with multiple platforms that drive consistent growth and to meet our targets.

We have a total addressable market of over $13.5 billion, and it's growing. We will deliver strong net revenue retention with our 115% to 120% target. As Stuart said, at 115% alone, we can continue to double in size every 5 years.

We have significant white space in existing customer base. Once we land a customer, there are many, many new products and modules that we can provide to those customers. We license in a number of ways, and we see continuous growth in our ratable properties and student charges under our agreements, together with built-in annual CPI increases for all of our customer contracts. And we continue to win new logos in both APAC and U.K.

SaaS+ is a game changer, and from a growth point of view, replaces traditional one-off consulting revenue with high-quality recurring revenue. And we'll continue to invest in R&D.

We also continue to target acquisitions in a very disciplined way that adds new IP to the business such as CourseLoop. The leverage we're delivering in our business provides us with significant headroom for inorganic growth. We've got a great vision and a great platform for the future of ERP with Plus and now in-product AI. And when we add IP acquisitions to this foundation, the value to our customers and to TechnologyOne is exponential.

At every stage of our evolution, we provided more and more value for our customers. We started as an on-premise company, as a license business that provided value by automating and streamlining our customers' operations. Then we moved to the cloud. And we said cloud was war, and as we moved people to the cloud, our customers would seek to consolidate vendors, and we're seeing the benefit of that. And customers seeing the benefit by consolidating vendors. They have removed the complexity in their own operations.

Then we moved to SaaS, with multi-tenanted SaaS, the world's highest level of cybersecurity certification. And on SaaS, all products and modules are available and visible for our customers, which has enabled our customers to take our products seamlessly. The next evolution of SaaS was SaaS+ and ERP in 30 Days. Even more value has been created for our customers as the need for long, complex, risky traditional implementations has been removed.

And finally, we released Plus at showcase recently. Unanimous feedback from our customers is the amount of efficiencies and savings in their organizations that we presented at showcase was, in fact, conservative and would be at least 2x, 3x, perhaps even 10x more.

So at every stage of our growth, at every stage of our generations of software, we deliver more and more values for our customers, which means more and more value for TechOne. Our strategy, our investments and our resulting moat before AI and Plus was already strong: verticalized software, mission-critical applications that only a handful of vendors in the world provide. Software built for complex industries with strict compliance requirements.

Some have said that the Power of One was a handbrake on growth. But with SaaS+, we've flipped the switch and we've removed the buying and implementation friction for our customers. And with ERP in 30 Days, we can scale even faster. We have industry-leading customer retention and we have a track record of delivery.

Now with AI-enabled products and Plus, our moat is even wider, even deeper. It's evident to our customers and prospects that more data from taking more of TechOne products and modules equals more learning, equals more augmentation and more insights, equals more value. Plus, with no clicks, no screens, just a conversation, it's a Trojan horse for taking more of our products. It has a low price, has no implementation or training, which drives more product and module take-up in our customer base.

An additional piece, as our customers take on interactions and conversational bundles, this AI transaction-driven pricing will drive additional ARR from each of our customers.

Now let's zoom in and focus on the outlook for FY '26. The markets we serve are resilient and TechOne is not impacted by any of the current geopolitical issues. TechnologyOne provides mission-critical software with deep functionality for the markets we serve. Our customers have independently verified cost savings of 40-plus percent by moving to our SaaS. And our global SaaS ERP, now turbocharged with AI and Plus, allows our customers innovate and meet the challenges ahead with greater agility and speed without having to worry about the underlying technologies that make it simple for them.

Plus we'll drive net revenue retention. SaaS+ is driving significant opportunities for us and the pipeline for FY '26 is strong. And we'll continue to benefit from the improving margins because of significant economies of scale of our single-instance global SaaS ERP.

We talk about heartbeats and rhythms all the time in our business. And for as long as I can remember, our heartbeat, our rhythm is to maintain the 15% profit growth. And we were able to do this because we've been disciplined focused and have a history of delivering. And as we transition to a SaaS company and now a SaaS+ company, we've been able to carefully and surgically increase that heartbeat and that rhythm. We started, firstly, with 10% to 15%, then that accelerated to 12% to 16%, and then 13% to 17%. And you can see we've got a track record of delivering or beating the top end of guidance. And our outlook for FY '26 remains strong.

And talking about rhythms, just like we've always done, we'll provide another update on our guidance at the AGM in February. Our discipline, our diversification, execution and visibility of the business gives us the confidence to continue to drive strong growth.

In FY '26, we introduced our groundbreaking AI platform, and it's set to deliver a generational leap forward. As a result, TechOne sales pipeline of opportunities for FY '26 remains strong, which positions us for strong continuing growth. We've got this energy, this momentum in the business right now, 20 products, over 500 modules, our addressable market is huge and it's growing. We've made and we'll continue to make significant investments in R&D, in new products, in new modules. And because we follow the road less traveled, we have invented SaaS+ and set a very ambitious goal of ERP in 30 days. And with our game-changing AI-enabled products and Plus, with no clicks, no screens, just a conversation, we maintain our strong conviction of $1 billion-plus ARR by FY '30.

As I said at the outset, our people have a deep connection with our mission because they, their parents, their brothers and sisters, their family live, work and play in the communities we serve. They live and breathe the TechOne way. They create and deliver the mission-critical products and solutions that power our customers.

None of these results would be possible without the talented and committed people who make up TechOne. Our people, they're on a roll. They have this energy and momentum. Since 2017, we measure employee Net Promoter Score. It has grown from minus 17% to plus 43%. We would all like to thank each and every member of the TechOne team across the globe. We'd also like to thank you, our shareholders and our community, for your continuing support.

Can we now hand back to the moderator for any questions?

[Operator Instructions] Edward, we will now start with questions from the phone call. Your first question today comes from Kane Hannan from Goldman Sachs.

Maybe just starting on that ANZ ARR growth. I think it slowed from around 19% in the first half to sort of 15% in the second half. If you'd elaborate a bit more and what drove that slowdown and some of the changes in NRR that came through and whether AI launches coming next year delayed some things on your side we should be thinking about?

Thanks, Kane, for your question. Firstly, we're very proud of all the results we delivered, including our ARR growth. If I look at it at multiple levels, we've got multiple platforms for growth. Our goal is to obviously hit the profit for the year, but also hit our ambitious goal of $1 billion plus ARR by FY '30. And we're very confident, on the track of that.

We also balance all of our metrics and all of our delivery. I think when we look at -- with the Power of One, we have to deliver consistently for our customers. And so you might have heard me talk about heartbeats. And our heartbeat is set in a way that we don't stuff it up, and we don't stuff it up for our customers. That's first and foremost. So every piece of ARR we deliver -- we sell, we have to deliver. And so we're very focused on that.

And Kane, was there a second part to your question?

I had a couple of different ones, but it's just more the slowdown. But if I think about -- you talk about setting the platform for sustained compounding growth in the U.K. I think the U.K. was about 20% of the incremental ARR growth for the year. Is that the sort of level we should think about going forward? Do I think about that sort of trending higher given the success that you're seeing? Or just how do you frame the U.K. momentum from here?

Yes. I think what we do is we set out, obviously, profit goal, then we set our total ARR goal. And U.K. is part of that. I can't actually picture the 20% thing you talk about. ARR in the U.K. grew at 49%. We expect it to compound quite strongly. I don't know if we'd commit to 49% year-on-year-on-year, Kane. But within the context of all of those ambitious goals, the U.K. will continue to be strong over the next 3, 4, 5 years.

Yes. So I mean, sort of share of revenue growth. But yes, that's helpful. And then just lastly, the changes in the divi payout and obviously the special dividend. Is there anything we should bring into that in terms of appetite for larger M&A that we've seen a bit of across the tech space down here? And just how do you think about the M&A landscape at the moment?

Yes. I think we obviously are at a point where we're -- hit leverage and we're, for lack of a better word, churning out a lot of cash. One of our long-term shareholders said, "If you keep going on the trajectory you're on, Ed, you'd probably have $1 billion cash by FY '30." And if we do, we probably will. So one, it's a good problem to have. Two, you saw this year, we made an acquisition in CourseLoop, we did a share buyback to neutralize the staff equity and we also gave a special dividend, so with our confidence in the future and a whole lot of cash generation, we could do that.

We think that with the platform we have, plus an AI with the strong cash flow generation, which we'll continue to see, that there will be opportunities for us to make M&A. But we'll always do it in a disciplined way that we've always talked about, having great IP in the verticals we serve, in the regions we want to follow. So we think there's a lots of opportunity, Kane, and we think that we can take advantage of that opportunity, but I just want to flag that it's always in that disciplined way.

Your next question comes from Wei Sim from Jefferies.

Great presentation. Great set of results. My first question is just in regards to SaaS+. So Cale mentioned before that we're seeing kind of like a $17 million revenue headwind from this. I've done some like modeling on unit economics. And I think SaaS+ started around 2022, if I remember correctly. So should we expect, I guess, these headwinds to start becoming tailwinds as we go forward? And how should that feed into our thoughts for the company's growth opportunities and that [ party ] that you talked about?

Yes. I guess, Wei, that will definitely become a tailwind at some point. That is kind of the whole point of the strategy. But in terms of being really granular about when that sort of nadir is, I guess we're not too clear on that. It does feel like we're getting closer to it. There is plenty of momentum in the SaaS+ strategy. The teams are all executing well on implementation.

So yes, look, we're getting there, but I don't want to put a sort of firm date on it. But you're right, there is a point here where what we've sold is generating more revenue than the cost of us implementing what is currently in front of the team.

I think, again, to Cale's point, it is a long-term strategy. And when we come out of that like low point as you put it, expect margins to accelerate. We just got to get there first.

Okay. That makes sense. Some of the, I guess, concern from the results this morning I've heard is just that NRR number being at the 115 %, which is definitely still world-class, but at the bottom end of the range. I was just wondering in terms of, I guess, the number of products per customer, is that -- some -- a way that we should think about it? And are you able to give us any kind of color as to the average product per customer right now? And in terms of your highest penetrated customer, what they look like, just to understand what we could see the potential outcome as you continue to penetrate your existing customer base?

I think there's multiple levels here. I might start and then hand over to Stuart. I think, firstly, Wei, you're right, NRR at 115% is awesome. It's at the top of the range. If we continue to do that alone, we'd double in size every 5 years, which is sort of that high-level commitment and strategy we put out there to the market.

One thing that we should probably all just look through is when you look back a couple of years in the COVID and in the sort of post when we had those supply chain issues, CPI for some of our customers were running at 6.5%. So my signal is to look through the last couple of years, CPI has returned to normal now, which is probably 1.5%, 2%. So that's a lot of probably the delta.

But Stuart, going to the next point, we don't measure products or modules per customer anymore because it's a little bit nonsensical, but do you want to...

No. It's completely a fair question. The issue that we have is it's not apples-for-apples. So we break it down to 20 products. In the 19 traditional products we have, they all have a different amount of modules. So if I look underneath the covers of just financials, it has somewhere in the region of 25 to 30 modules. And I can't think of a single customer that's actually got all 30 modules. So it's very hard to actually give you a metric that's meaningful that says the average customer has 6.25 products, because there's no apples-for-apples comparison against other customers because it's other verticals, it's other regions, with other product sets.

So what we really look at is the graph that I spoke to in the presentation, is the ARR growth per customer. And so that's trying to be a mix of everything to show you. But we don't look at any customer related to the total BOM potential and then the average of. We have what we call an El Dorado map. So we see the white space of every product that we have that they don't, and we target them. But we don't look at it as a whole cohort. Because it doesn't really work; it's not a measure that adds value.

Wei, can I add that -- I was talking to someone earlier, and they said something to me, something to the effect of, "If you hit $1 billion ARR by FY '30, is that slowing growth?" And I smiled at them and said, no, no, it's $1 billion-plus ARR by FY '30, because we're not indicating slowing growth, number one. Number two, we invest in more products, more modules for our customers, so we expect ARR to -- NRR to stay in that 115% to 120% range going forward.

And I might also say that we launched Plus, which we've been investing in for a couple of years, and Plus is like the Trojan horse for more NRR. Do you want to talk about that, Stuart?

Yes. So the goal of Plus and what we've built with Plus is to give true visibility of your organization. But it only can give you visibility of the information that we provide, the data lake that we're supporting. And so when we started looking at early adopters and getting feedback, every single one of them said "We need to expand our footprint of TechOne so we can get a more wholesome understanding and review of our business."

And so to Ed's point, we think of it as a Trojan horse because we've made it in such a cost-competitive position where we want them to consume it and use it, because really what we want them to do is buy more products underneath to leverage it. And so we're already seeing that play out.

So we released Plus about 3.5 weeks ago, I think. Our average sales cycle for an enterprise product is about 8 to 9 months. If it's a new customer, it's probably 9 to 12 months. We have sold 8 plus deals in 3.5 weeks. And the exciting part of that is they are paying for something now, they are so excited about it, and they won't actually get the access to it until March. So they can see the value, they can see where they want to go.

And now they're coming back to us and saying, "Can we start consolidating some other products, so when then Plus is available, we're ready to actually leverage that data lake?" And at the same time, the beauty of what Plus does, it doesn't start from day forward. It actually looks at all your data going back to the first time you were starting to use data stream software -- sorry, data stream -- TechOne software. So it really does value your whole enterprise from day 1 all the way forward. The market is unbelievably excited by it.

Can we elaborate on that phone call we had on a Thursday night before even launched Plus with a customer?

So we did quite a bit of research before we released Plus and we wanted to make sure that the excitement that we saw, others were seeing. And so we had a very large university and we had the full SLT on our side with their full SLT, and we gave them a full demo. And the first reaction was from the registrar of the university who said, "This is a game changer. This changes everything."

And so we asked them the question very early up and said, how would you price this? How would you value this? And they said from this very simplistic demo that we've seen, we can get -- we can reposition at least 2 analysts inside our university just from a very simplistic view. So it pays for itself very quickly. And then the CIO said, yes, but we need to get your HRP system so we can really get that full understanding of our operation. That same conversation has happened with 3 universities in the span of 4 days. That's the conversation we want to have.

We are still an ERP company. We want to sell ERP. We want to sell the value of our products. And Plus is a way of delivering it at speed and at scale.

It terms of like -- yes, I mean, the pipeline is definitely accelerating right now. One last juicy one, and I'm guessing you did it by design, but Slide 32, ERP in 30 Days, any possibility we can get what that number is looking like at this point in time?

I'll take that one. So when we've shown the graph related to ERP in 30 Days, it's quite a linear graph. And although I would love it to look like that, it won't. Because as we talked about in the past, we really look at getting to ERP in 30 days in 2 ways. One, it's our processes and our methods and just being faster and more intelligent related to the way we deliver software or deliver solutions. But then we also get the technical benefits.

And so we've been working in the background for about 2 years getting ready for what will be the drop of 26B and 27A, and we'll see massive improvements through that. So you'll see a relatively smooth linear line with massive drops as we go through, and so we are on track. But to give you a number, it's a bit of a misnomer related to, if I do a straight line, how would we get there? Because we're going to see huge improvements in the release of 26B and 27A.

The summary is we are on track. We will deliver ERP in 30 Days in FY '28.

Your next question comes from Paul Mason from Evans & Partners.

Could I just ask on some of the AI features and the pricing that you guys discussed at the Product Day? Could you maybe talk a little bit about how that's expected to initially flow through into ARR? Like should we actually think about that having a couple of points of accelerated benefit? Or is it a bit early to sort of call that?

It's definitely early days, but I'll hand it to Cale to color that in a bit for us, Paul.

Yes. Thanks for the question, Paul. It is early days, yes. We don't really know how quickly the take-up is going to be. And obviously, as Stuart spoke to, as the strategy evolves, as the product evolves, the utility of the product will further evolve. And as they -- as our customers broaden their ERP usage, as does the utility increase.

In terms of how it will flow through, there are 2 elements. They'll both show up as ARR. One is sort of a more licensed access and the other is really transaction-driven ARR. And as that utility and as that usage increases, as well that ARR, at the moment, even our forecast, they're really sort of pie in the sky at the moment. So hopefully, as FY '26 evolves, we'll have a much better view of how that's going to unfold.

Can I take a little bit? And there's 2 ways to look at it. So our whole price book has been lifted by 10% to capture the benefit of the products that have been enabled with AI. And so you're looking at 2 things: the traditional ARR uplift from the product side and then that transactional pricing that we're learning from. But the market really loves the way that we've built it. So it's that simplistic view of not worrying about tokens and complexity of a question. It's really the usage of. So it's resonating very well with the customer base.

We should be clear though that we've uplifted the price book for new sales going forward. We...

Yes. Not the back book.

We don't uplift the back book, yes.

So maybe I'll summarize all. If you're an existing customer using financials and we've enabled AI, you get up for free. If you're a new customer that wants to buy that same financials, the price book will be uplifted by 10%. And then there's also this thing, which is conversations or interactions, and we call that transaction-driven ARR.

Now we haven't factored that into our forecast; that's upside for us. And what it means is, as the customers use their allocation of conversations or interactions, they can buy in bundles. And that bundle will uplift their ARR. And when you piece it all together, it's quite an elegant way to price, it's quite an elegant way to capture value for -- demonstrate value for our customers and capture value for us. Thanks, Paul.

Just the second one for me was just a quick modeling question, so probably for Cale. Your receivables management looks like it was unusually exceptional. Should we use the current sort of ratios of receivables to sales as an indication going forward or expecting a normalization there?

No. We have an amazing receivables team. Shout out to Kate. She's done a great job for her team. If you look back over the last couple of years, that team has done pretty well. So there's nothing super unusual. They did have a good year, but there's no kind of big one-offs in our performance.

Can I play off that for 1 second too? I think it also highlights that we're selling well and delivering well. And so we've got -- we know our wheelhouse, we know what our customers want and we're delivering. So all parts of the business are performing to be able to achieve that.

Exactly.

Your next question comes from Garry Sherriff from Royal Bank of Canada.

A quick question on that government vertical. Are there any changes in the customer buying or feedback from federal or state government? Because the growth does appear to have slowed materially in that second half. Like if I look the last few periods, it looks like you did about 41% PCP growth in the second half of '24. You then did 28%, so still super strong, in the first half of '25. But it looks like it's dropped to about 9% in the second half of this year. And I just want to check, is there anything changing there that we should be aware of? Or just any feedback from that federal or state government vertical?

Yes. It's a great question. The strategy that we've positioned for federal and state is the same as I would have mentioned for local government in the U.K. It's slow and steady and we go further and further up the food chain. And so we've got a strong foundation of referenceable customers in the federal government, and that's allowed us to win things like Department of Ag and the Department of Veteran Affairs. And we're being pulled into larger, more complex departments. And the problem is we don't have the ability to really change their buying cycle or speed or the velocity at which they go to market. And so we're doing exceedingly well. We've just got to wait for that machinery of government, that process to come to fruition and then we can capitalize on it.

But I wouldn't read into anything other than we're at the whims of the government and the process they go through in those very big complex accounts to make sure that we're there first. But we've got a very strong track record. Our win rate is extremely high. And now because we're on the panel for government related to SaaS+, that win rate is improving. But again, we have to wait for those projects to come out.

Probably the final piece, Stuart, is the pipeline is very strong.

Yes. And not only strong, but expanding at the top end. So we're being brought into the largest departments now. And so that's very exciting. Again, it's that validation of our strategy to start small, build out, it really is resonating well. We've just got to wait our turn as we wait for those contracts to come to fruition.

Excellent.

Got it. I guess the FY '26 guide, I mean, market seems to be looking for a bit more concrete understanding on how that's shaping up given you've got almost 95% of your revenue being recurring now. I mean is there any steer you can give to us rather than wait until Feb.? I guess the market's in a "shoot first, ask questions later" at the moment. So yes, maybe just anything, give us a sense on that '26, or do we have wait another few months to hear more?

I think you have to wait a few more months. We talk about rhythms all the time, and we have this rhythm and heartbeat in our business. It's very strong. And you can almost see the trajectory we're on in that guidance slide, Paul. So if you could just hold for a little bit, we will keep to our rhythms, keep to our techniques. And we will deliver for our customers and, therefore, our shareholders.

Can I try a different tack for you for a second? I'll give you another metric that we haven't highlighted. So we did showcase event 2.5 years ago, and we had -- sell up for what we expected. We just finished our showcase events for Australia and New Zealand, and we had double the attendees. Double. So in 2.5 years, our brand, the want to be understanding where we're going and be part of the journey of TechOne, there's double the amount of people in the room in each location. That's in Wellington, Melbourne, Sydney and Brisbane. That's a testament to where this brand is going, how it's resonating with the market and the excitement behind it.

Your next question comes from Josh Kannourakis from Barrenjoey.

Just one quick one. I know you've still got some customers converting to -- from CI to CI Anywhere. When you're talking about Plus and, obviously, all the features and functionality of that, do they need to shift to CI Anywhere to get access to that? And if not, maybe just talking about if that is a potential accelerant in terms of that bring forward of adoption of the CI Anywhere platform?

It's a really good question, Josh. It's a really good question. The answer is we can actually service customers that are on CI with the technology we've built. So we can do it. But we want our customers that move across to CiA. And so we have the opportunity, but want that customer adoption to move across. The customers are moving across to CiA at rapid speed. So we're very happy with the speed at which people are coming across. But the technology, the underlying technology can service, the point you're making, but we want it for our customers that have moved across.

Yes. And I guess, also to that point, for those customers and if you've got anything, Stu, just around what maybe a proportion of the customers are on CI Anywhere today. But obviously, those customers that are doing that, I think, historically, we've found have also taken more product? Is that correct as well?

Absolutely. So it's kind of all part of the mix of the strategy. So it's really hard to answer the question of customers that are wall-to-wall CiA, but it's in the hundreds, right? It is very high. And I believe there will be a point where we call a date related to CI as a product that we move everybody across. And we're getting closer and closer to that.

And absolutely, as customers move more and more into the CiA space, the adoption is higher because they can see where all of our investment is. The only investment we do in the CI product is really our obligations related to bugs and obligations related to regulatory and governance. So all of our effort in CiA, the customers are moving across at rapid speed, we've made it really easy to get across now. So the speed at which we can move them across is much faster than it was even a year ago. So the momentum is there. Momentum is there.

Okay. That's helpful. And just second one quickly. Just on M&A, obviously, a lot of cash sitting there, as everyone's referred to. When we look at some of the product fits and gaps, obviously, you've talked previously about -- we've talked about revenue benefits in the U.K. as one area. But I guess the structure of the boroughs and the different government structures over there mean that there's sort of a broader remit. Like is there other alternative areas outside of maybe what we traditionally see as your hunting ground in Australia that you may be able to move into, or any adjacencies?

The simple answer is yes. And we tried to explain a little bit of this at the Investor Day. We tried to explain the complexity that sits underneath the council. Of our 18 or 19 products depending on the vertical we're in, there's probably 80 products that are running at council, there's probably more than 100 products that are running in university. So we have the ability to look at what's there.

But at the same time, as Ed said, for us, we need the right IP and we need that also -- those people to come across with that scar tissue and understanding too what we look at as 1 and 1 equals 3. We need to make sure that when we bought CourseLoop, it was additive not only from an ARR standpoint, but our messaging as an ERP. And that's where we get the excitement.

So the simple answer to your question is, absolutely, there's things that we're looking at all the time, and there's a lot of great companies out there. We just want to make sure that it supports the whole portfolio.

Your next question comes from Cameron Halkett from Canaccord Genuity.

Quick one, if I can go back to Plus. Ed, you've made comments on the media before around the potential adoption of Plus within the first year of being around 10% to 15% of your customer base. Anything you can sort of comment too around that step now that you've done showcase? Any sort of post-showcase feedback, how that sort of evaluates and compares to that state you've provided before?

Yes. So the slide you're referring to is the one that says maybe fastest uptake of ARR. I think if we take a big step back, when we attended the showcase and gave that presentation, the unanimous feedback was that the customers expected AI, but no one expected Plus. It has literally changed the game for ERP. I was standing beside a researcher, economic researcher -- independent from TechOne. He's done work for Tech One, but he's done work for all ERP providers. And he said something to the effect of "You have just leapfrogged the entire competition with Plus." And that's the feedback we're getting from our customers.

Now if you then fast forward to that moat slide and join the dots with some of the things that Stuart explained, is that Plus with its conversational nature gets rid of 1,000 screens, literally 1,000 screens, in our software. And with no clicks, no screens, just conversations, and no training, it makes it literally changes the game. No one has done or thought about what we have delivered for the Showcase.

Now join that together with when I'm using that as a user, if I only have financials like this higher education customer, now I need to have your HRP because I can see the value. Now I need to have a student management because I can see the value. It is a game changer. It will accelerate. It in itself will be the fastest uptake of our products. And do you want to add anything to that?

Yes. So just to give you a little bit of insight too, just give you some understanding of our confidence in it. Right after the showcases, we built a schedule for demos. And so we built a whole scheduling system for the allotment of getting demos to our customer base. We were oversubscribed within the first week. And so the want to understand it, the wanting to see that, the wanting of the teams to see it throughout this whole organization. I think Ed is actually demoing it as well.

Yes, next week. Yes.

So it is what everybody is asking about. It is bringing up the level of the conversation, and it's very exciting.

Yes. Second one is just there's obviously some questions around the net revenue retention. But just by nature of its definition, upgrade is the biggest component of it. Given you've got the price increases coming through before, I believe, it's March 31, should we expect the net revenue retention at least coming into the following half, we are available to say at least anyway, should be at least 115%, particularly given -- potentially to avoid some of that price increase as people procure earlier?

I don't -- maybe the answer is yes, Cameron. We don't look at that precisely. We go 115% is our goal and we'll deliver that, with all the platforms and all the levers we have. So it's just not that precise, Cameron. But we'll add to the conviction and the delivery of that number.

Sure. Last one, very quickly for Cale just around R&D guidance. You mentioned that there's been a bit of a pull forward, I guess you've laid everything ready pre-showcase. With the range still at 20%, 25%, is that something we should probably consider probably more drift towards the middle of that range in the next few years rather than continue to be at the top end just given that pull forward you mentioned before?

Yes. Look, I think as time goes on, just the way of the business growth, we'll see that number drift towards the middle. I think importantly for us, that we don't -- it doesn't go below range because we need to make sure that we're investing for the future. But I think that's a reasonable conclusion. We continue to find plenty of interesting things to set our R&D people's minds to, and they find it themselves. So look, we'll continue to invest, but -- in the range. But you're right, revenue is growing pretty quickly. And that R&D investment is primarily people.

Well done again.

Your next question comes from Bob Chen from JPMorgan.

A couple of questions for me. Just in the U.K., obviously, really strong momentum there. I mean just how important are the Greenwich and Islington contracts as a reference case for future customers? Do you have potential sort of pipeline looking at those implementations before they sort of pull the trigger?

The simple answer is it's huge. So if you look at the boroughs, they have the purchasing power to buy whatever they want. And so they're always looking for the first person to really be that early adopter of that new concept, which was SaaS+. And Islington being the largest borough, doing it first was a natural progression to Greenwich, and there's a lot more behind that. So we're really excited. And getting the biggest ones, the best brands upfront is very, very exciting.

Stuart, where Bob might have been going, and correct me if I'm wrong, Bob, is, do we have to wait for go-live for those?

N. No, no. So we got Greenwich within 6 months of the award of Islington. We will continue that momentum. So the momentum is there, the pipeline is strong. They'll be paying attention. And the beauty of the boroughs is they all talk to each other. So it's actually the success of its implementation, that was a validation for Greenwich to move forward. And that continues.

Yes, perfect. And then in terms of when you're thinking about resources of manpower to tackle that pipeline, like how does that sort of compare in the U.K?

Yes. No, it's a really good question. So we've built a concept of a slot. So we have looked at our goals for FY '26 in the U.K. and we've stratified it based on its profile of financial, supply chain, EAM and then we've looked at it from a local government and in education. And so we can see forward more than a year now related to the resourcing we need to achieve the goals we want. And so we're really playing that far ahead and we can see that all the way through. I was on a call last night with the team looking at FY '27 and the slots we need. So we can see far ahead now.

And Stuart, can I add also that one that's amazing, and that was learnt from our SaaS transitions, the concept of slots, but when you match that with ERP in 30 Days, we can do 4 slots today, just making that up, tomorrow we can do 6 slots, the day after that we can do 8. So we get more and more efficient and we can scale without adding people, Bob. So it's quite exciting times in the delivery part of our business as well.

Perfect. And then maybe just a quick one for Cale. I think you mentioned earlier just some duplicate infrastructure costs. Could you sort of quantify what that impact was to your earnings this year?

Yes. So we won't sort of fully disaggregate that. It's a bit of a complex piece. So I mean, the team are working hard to modernize our infrastructure, to make it more scalable and more performant for our customers as we continue to grow. I think what I said a little bit earlier and what we'll stick to is the rate of growth won't be as high as it was this year. This is a bit of a step-up year as we duplicated some stuff temporarily.

Thank you. As there are no further phone questions, we will now pause briefly and take questions from the webcast.

Thank you. Do we have to read these questions?

Your first question from the webcast comes from [ Cheryl Lam ]. Cheryl asks, all customers now transition to SaaS. What gives you confidence that that churn will remain low? NRR in the second half seems to have slowed down relative to the first half of 118%. Can you provide some color on what drove this? Any changes in operating environment in second half to first half?

So a little bit of clarification so we're on the same page. All of our TechOne traditional organic customers have moved to SaaS. When we acquired Scientia about 2.5, 3 years ago, there's still a few outliers there that are moving across, so I just wanted to be fair.

And the churn is fantastic, fantastically low. Our customers are resonating. As we've said they would from the very beginning, when we started the story, almost 10 years ago now, that when they came across to our SaaS world, they would -- we coined the phrase which is cloud is war, we would help them consolidate the rest of their outlying applications into our systems. And that's what's playing. And that's why the churn remains so low, because they're actually taking more products, not looking to offset products.

Thanks, Stuart. The second half of the question is about NRR and does it look like it's slowing in the second half?

I think we manage the business on a full year cycle and we managed the business within all of our metrics and heartbeat. So I don't read into first half, second half. It depends where big deals happen. Perhaps like we talk about government all the time, they're very lumpy; higher education has very lumpy deals. We manage the business over a full year, number one. And we're very happy with the result in NRR.

And second part is heartbeats are very important to us. We have to deliver for our customers as well. So all the metrics you saw were in -- met all of our expectations. Thanks, Cheryl.

Thank you. Ladies and gentlemen, there are no further questions at this time, which concludes our conference for today. Thank you all for participating. You may now disconnect.