Sir Dominic Cadbury

Chairman

Misys is on track and delivering the anticipated results

This year Misys generated Group revenue from continuing operations of £692.4m an increase of 40.7% compared to the prior year. On a pro-forma like-for-like basis, which adjusts for the effects of the Allscripts transaction on 10 October 2008 and the favourable movement in foreign exchange rates, Group revenue was £747.8m a 3.1% increase on the prior year. Reported adjusted operating margin was 17% compared with 16.4% in the prior year. On a pro-forma like-for-like basis, adjusted operating profit increased by 14.4%.

Adjusted basic earnings per share from continuing operations are down 2.8p at 9.8p. The earnings dilution results from the divestment of hospitals systems business, and the near term dilutive effect of the Allscripts acquisition, which we expect to be earnings accretive in 2011.

Our dividend policy was amended this year in order to retain funds that would have otherwise been issued as dividends to shareholders and we will reinvest these funds in our businesses. This policy will increase our rate of growth and generate strong, sustainable returns for shareholders over the long term.

These results confirm that the Misys turnaround strategy initiated in 2007 is on track and delivering the anticipated results.

A remarkable turnaround

Following the attempted buy-out by management in 2006, Misys faced great challenges and uncertainty. The Board took action, bringing in Mike Lawrie as Group Chief Executive on 1 November 2006.

Under Mike’s direction, and with the guidance of the Board, we have seen a transformation in people, products and performance. The new leadership team set out a clear, customer-focused strategy, and this has enabled us to focus on growth markets, sell non-core businesses, rationalise the product portfolio and reduce costs.

Resilient in tough conditions

The adverse economic, financial and commercial environment is very difficult for many of our customers, and Misys has not been immune to the effects of the downturn. Our revenues from financial services customers in established markets have been impacted.

While the environment is challenging, our rapid turnaround meant we went into tougher market conditions fit to compete. The Company’s global footprint helped to protect us from the worst effects of the downturn in established markets, and we secured strong sales growth in Europe and in the Middle East and Africa. Our large installed base continued to generate recurring revenues and we launched new solutions geared to changed market conditions.

Clearly, the downturn has not yet passed. Misys will continue to face considerable challenges, but our lower cost structure, our revitalised organisation and new product offerings will enable us to meet these challenges successfully.

Leadership through merger

We are establishing our leadership in our chosen sectors in Banking and Treasury & Capital Markets. During the year we strengthened our position in healthcare through the acquisition of the majority shareholding in Allscripts. This has made us one of the leaders in the provision of healthcare information technology in the physicians (doctors) market just as the US government’s stimulus package is injecting more than $19 billion into Electronic Health Records (EHR).

The strategic decisions we took to focus on physician practices, divest ourselves of our hospital practice business and proceed with the merger with Allscripts, despite the turbulence in debt markets, will enable us to exploit the EHR opportunity and give us an excellent basis for future sales and earnings growth.

A winning culture

Rapid progress can only be accomplished when everyone in a company works, in unison, towards shared goals, so I want to congratulate the entire Misys team for what they have achieved together.

The difference within the Company is tangible. We now have clearly defined centres around the world; London, Bangalore, Manila, Raleigh, New York and Chicago. Our new headquarters at One Kingdom Street, in Paddington, London, reflects the consolidation and quality improvements made to date. I am delighted that customers enjoy visiting us.

This year we took steps to strengthen the Board. We appointed Philip Rowley as a non-executive Director, and Sir James Crosby as a non-executive Director and Chairman Designate. Both bring important and relevant experience to the team. I am delighted to be handing the Chairmanship to Sir James, who is very well qualified to lead the Board. Through his experience of banking and financial services, he understands the priorities and concerns of our customers and shareholders. I believe he will form a strong and effective partnership with our Chief Executive Officer Mike Lawrie.

I would also like to express the Board’s gratitude to Dan Fitz, who has retired from Misys as Company Secretary. He played an invaluable role through the transformation of the Company and I thank him for his contribution.

Finally, I pay tribute to the character of the people at Misys. The results achieved this year, in such difficult conditions, bear testimony to their talent, determination and energy. Our employees and executive team have worked very hard to transform the results and potential of the Company. I thank them for their work, and I leave knowing that a strong commitment to advancing the interests of customers and shareholders will now drive Misys forward.

Sir Dominic Cadbury

Chairman