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Chairman’s Address 2007
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Chairman’s Address

Trintech’s Annual General Meeting

Wednesday, July 25, 2007

Good afternoon fellow shareholders, colleagues, ladies and gentlemen, welcome to the Annual General Meeting of Trintech Group plc. The time is now after 3pm, and I would therefore like to start the proceedings.

I note that the necessary quorum of members is present and I therefore have pleasure in declaring the meeting open.

I would like to preface all discussions today with the following ’safe harbour’ statement. This AGM will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. In particular, forward-looking statements will include amongst other things, statements relating to Trintech’s expected revenues, earnings, overall financial performance, acquisition opportunities, strategic direction and goals, product and technological investments and cost base in fiscal 2008.

These statements should be considered forward-looking in nature and subject to certain risks and uncertainties that could cause actual results to differ materially from those statements.

Actual performance may be affected by the factors more fully discussed in Trintech’s Form 20-F filed with the Securities and Exchange Commission in May, 2007 and all subsequent filings made with the Securities and Exchange Commission. Lastly, please understand the company undertakes no obligation to update any information presented at this meeting or during the ensuing question and answer session.

Now, I would like to briefly introduce you to the other members of our Board of Directors who are here with us this afternoon. I’ll start with the Executive Director team:

Paul Byrne, our President who has been a Board member since 1997. Before joining us, Paul was Group Financial Controller at Lafferty Publications Limited, an international bankcard publishing house for the Financial Services Industry, and before that he was a chartered accountant with Price Waterhouse.

And myself, Co-Founder, Chief Executive Officer and Chairman of the Board. My career background was in Investment Banking having worked with the Industrial Credit Corporation – ICC for several years in the IT investment sector before co-founding Trintech with my brother John. I have been a Director since 1987 and currently serve as Chief Executive Officer and Chairman.

Also with us today are our non executive directors: Trevor Sullivan, Robert Wadsworth, Kevin Shea and Jim Mountjoy.

Trevor has served on the Board since 1991 and for eight years Trevor was the Chairman of our Board of Directors. Since 1981 Trevor held a number of senior management positions at Memorex Ireland and Memorex International and prior to that he worked with IBM.

Having joined us before going public, Robert has served as a non executive Director since September 1998. He is Managing Director of HarbourVest Partners, a private investment company and has served as Managing Director of HarbourVest Partners since 1997. Prior to HarbourVest, Rob worked for Booz, Allen and Hamilton, an international consulting company, specializing in the areas of operations, strategy and manufacturing productivity.

Kevin Shea joined the company back in January 2000 as a director and Chief Operating Officer, a position he held until September 2001. Before joining Trintech, Kevin held senior executive roles in the US with National Data Corporation and Citicorp, among others. Kevin now serves on the Board as a non-executive director.

Finally, we have Dr. Jim Mountjoy. Jim joined the Board in June 2004 as a Non-Executive Director. Prior to this he was co-founder and CEO of Euristix Limited, a software development company which specialises in telecommunications signalling systems which was acquired by Fore Systems which in turn was acquired by Marconi Communications. Jim serves as a Non-executive Director of, and advisor to, a number of technology companies and venture capital funds.

Turning now to a review of Board activities in fiscal 2007. Your Board spent considerable time over the last year working with senior management to ensure a thorough understanding of the business in what are still challenging market conditions. This is an essential part of our Board responsibility, and is instrumental in building the effective corporate structures and culture that we believe are critical to Trintech’s long term success.

As a matter of course, during the year the Board reviewed all disclosure policies and practices in line with corporate best practice.

Trintech’s Audit Committee consists of Kevin Shea as Chairman, Rob Wadsworth and Trevor Sullivan. Its primary purpose is to assist the Board in fulfilling its responsibility to oversee management’s conduct of the Company’s financial reporting process. This includes oversight review with respect to the financial reports and other financial information provided by the Company to the SEC and any governmental or regulatory body, the public or other users, the Company’s systems of internal accounting and financial and disclosure controls, and the annual independent audit of the Company’s financial statements.

Before I move on to summarizing the past year for Trintech, I’d like to take this opportunity to thank my fellow Board Directors for their ongoing support and hard work in what was a challenging but rewarding year.

Business Overview

Following a strategic review of the business during the year and the consolidating trends particularly in the payment hardware market, Trintech decided to focus exclusively on software and transaction services which were higher margin with greater levels of recurring revenue and consistent with our choice of business model.

On September 1st, 2006 Trintech divested substantially all of the Payments Business to VeriFone Holdings Inc. As a result, my comments today will be on our continuing business of financial software and services.

Today, Trintech is a leading global provider of financial software and services specializing in reconciliation workflow, revenue enhancement, transaction risk management and compliance for commercial, financial and healthcare markets.

For over 10 years, Trintech has been providing comprehensive, industry-leading solutions to financial departments seeking greater insight into critical transaction processes.

Trintech delivers a configurable, highly scalable platform that incorporates a company’s unique business processes, enabling managers to obtain greater visibility and more efficiently manage business risk throughout the transaction lifecycle. Trintech’s solutions help customers enhance and recover revenue, reduce transaction costs, eliminate fraud, minimize transaction risk, meet their compliance obligations and maximize cash flow and profitability.

Trintech is a leading player in the Transaction Risk Management and Compliance market space, supplying four key software products and services:

Trintech has a customer base of more than 465 industry leaders, including 13 of the Fortune 50 and 54 of the Fortune 500. Trintech’s customers include retail chains, commercial companies, financial institutions and healthcare providers in the USA, the UK, continental Europe and Australia. Top customers in recent years include Accenture, Providence Health System and Regis Corporation.

Now, moving on to the last 12 months in particular. It has been a challenging year in what is still an uncertain global IT market with difficult trading environments still existing in some markets. Despite this, our financial performance for fiscal 2007 was solid with revenue of over $25.8 million and net loss of $2.17 million.

The Company today has two business divisions: FMS and Healthcare. The FMS business generated revenues of approximately $25 million in fiscal 2007 compared with $21.0 million in fiscal 2006 which represented 19% growth on the previous year. This solid performance was due to robust growth in our core ReconNET product and our newly launched AssureNET product, as well as from our continued expansion into new international markets of Europe and Australia and new vertical markets of Financial Services.

The Healthcare division was formed in June 2006, to help healthcare providers, payers and financial institutions optimize the claim to payment transaction process, including transaction reconciliation and workflow management of exceptions. The Healthcare division generated revenues of approximately $800,000 for the year ended 31st January, 2007 which all related to the two month period after we acquired the Concuity business in December, 2006. Recurring revenue accounted for 62% of total revenue in fiscal 2007 and was derived from the provision of annual licence fees, transaction services, support and ASP fees. The remaining 38% of total revenue was generated from initial licence fees and the provision of professional services, such as implementation fees.

Overall, I am very pleased with our performance in our core markets which demonstrates the robustness of our business model.

Now turning to new products launched and new markets entered by Trintech in the last 12 months.

New Products/Markets

Trintech continued to make significant investments in its business, both in terms of R&D for new products and Sales & Marketing for the entry into new vertical markets such as financial services and healthcare as we believe there are significant opportunities for growth in these markets. We increased our investment in the development of the next generation of our .NET product platform focused on expanding the functionality and scalability of the platform. This will enable us to penetrate further into our core commercial/retail market, to facilitate international expansion, and the entry into new growth markets of financial services and healthcare. We also boosted our ‘go to market’ capability by investing additional sales and marketing resources targeted at expanding the sales and distribution network for our products and services both in the USA and internationally as evidenced by the opening of new offices in Holland and the United Kingdom last year and new partnerships with channel partners like Accenture and Bearing Point. During the year we announced new releases of our flagship ReconNET and AssureNET products. The latest release of ReconNET significantly increases the security of credit card and personal data through the use of encryption and facilitates the ability of business clients to comply fully with the most stringent PCI audits. The release of AssureNET Express complements our current product line of On-Demand solutions by providing a web-based compliance solution for clients who wish to purchase software as a service. The AssureNET product provides customers with a feature rich workflow process management system for enterprise reconciliation which assists businesses to manage risk and conform to Sarbanes-Oxley compliance requirements. Finally, our ‘On Demand’ solutions offering to customers including our ClearContracts offering to healthcare clients is part of our strategy of providing customers with an alternative transaction service pricing model and is consistent with our strategic direction of continuing to move the Company towards a software and transaction service business model with higher levels of recurring revenue.

We are confident that these new product initiatives and increased focus on new markets are generating a good sales pipeline which will position Trintech for future growth.

During the year Trintech exhibited at a number of marketing tradeshow events like the Association for Financial Professionals Annual Conference in Las Vegas for commercial, financial services and healthcare customers which showcased our new products and services and helped clients expand their business perspectives on topics like transaction risk, reconciliation workflow, revenue recovery, business intelligence and managing changing regulatory and compliance requirements. Customer feedback from the conference and tradeshows was very encouraging and we are confident that such events help to build a good pipeline of new business and customer prospects.

Our new products also featured prominently at our recent Customer Conference held in Los Angeles, California, where a large attendance of over 220 people attended, representing over 100 of our top commercial, financial and healthcare customers in the US market. Our conference was also sponsored by leading organizations such as Microsoft, Solutran Software, and Prodiance and was a great success.

At the conference, an Executive Circle for FMS and Healthcare C-Suite executives brought together thought leaders for one day to discuss best practices, unique business experiences, and technology and product roadmaps for the future. Industry analysts and speakers from Tower Group and Deloitte & Touche moderated the day’s proceedings and led the executive round table discussion at day’s end.

M&A Partnerships and Activity

During the 2007 fiscal year, we also continued to execute our strategy of building a strong network of sales channels and partnerships with the announcement of a partnership with Accenture for our AssureNET product suite. We also announced technology partnerships and alliances with Microsoft, BWise and Prodiance during the year. On the M&A front a number of major transactions were successfully completed in the last 12 months. In February, 2006, the Company announced that it had acquired substantially all the assets of Assurity Technologies Inc, a privately held company in the US for an initial consideration of $2.8 million subject to adjustment relating to performance related contingent consideration. Assurity provides an enterprise process management system for general ledger account reconciliation, review and certification. The product acquired, AssureNET is designed to increase workflow efficiencies and mitigate risk by strengthening internal controls to support Sarbanes-Oxley compliance programs. The acquisition strengthened our market position with customers benefiting from AssureNET functionality being integrated into Trintech’s ReconNET, to provide end-to-end solution for general ledger account reconciliation, review, certification and risk management.

During the year, we also announced the acquisition in December 2006 of substantially all the assets of Concuity Inc for an expected total cash consideration of up to $8.3 million (including a performance based earn-out). Concuity Inc. is a Chicago, Illinois based private company which provides leading edge technology solutions to optimize contract profitability for healthcare providers. Concuity’s primary value proposition is providing healthcare providers with software applications to allow them to recover revenue that has not been paid by payers due to complexity of the health care billing process in the US market particularly. This strategic acquisition continues Trintech’s expansion into the fast growing health care market. The performance and integration of the new acquisition is on track and to plan. In September, 2006, the Company sold its payment systems and hardware business to VeriFone Holdings Inc for $12.1 million in cash. Trintech is now fully focused on expanding and growing its financial software and services business through capitalizing on an increased demand for risk management and revenue enhancement solutions in financial institutions; expanding demand for compliance and control solutions across the existing customer base ; and growing its healthcare business following the recent acquisition of the business and assets of Concuity Inc.

Now turning briefly to cost management, fiscal 2007 saw an increase in our operating cost base as we aggressively expanded our investment in the development of the next generation of our product platform as well as the expansion into new vertical markets of financial services and healthcare. Our operating costs increased to $21.4 million in fiscal 2007 from $15.2 million in fiscal 2006, representing a 40% increase in the year. We will continue to focus closely on our costs moving forward, but realistically there is modest scope for further cost optimisation in our operating cost base. We have now consolidated our facilities to five global locations and our headcount is now at a sustainable level of approximately 215 people worldwide.

Trintech’s financial performance has been driven by our diversified customer base, product innovation and strong product set and a solid balance sheet which had closing cash and cash equivalent balances of almost $26 million at the end of our fiscal year 2007.

Moving onto the future and our business strategy and outlook for FY08. Trintech is concentrating on higher margin software products and market opportunities which best leverage our competency in reconciliation workflow, process automation, revenue enhancement and compliance. In this regard, we are fully committed to consolidating our move towards a software and transaction services business mix with a strong focus on recurring revenue as evidenced by recent new product launches.

In summary, the key components of the Company’s strategy are:

Looking to outlook for FY08 specifically, while we are confident about the business in general, we will remain conservative on outlook and guidance, as we transition the business and position ourselves for broader market adoption into new vertical markets of financial services and healthcare generally. We will maintain our significant investment in new product development and sales & marketing resources while transitioning our business into new markets. This investment program will have a negative impact on earnings and will continue to do so at least through the end of the 2008 fiscal year, although we expect this impact to be moderate for the second half of the year. With our strong cash reserves, we will also continue to evaluate potential acquisition opportunities like Concuity and Assurity Technologies that have a strong strategic fit with our business and which will allow us to expand into new vertical markets and drive global scale in this business.

In conclusion, our primary goal is to increase shareholder value by making the Company more competitive, more responsive to customer needs and better positioned to pursue new growth opportunities. Our business strategy is to focus on our key profitable products and leverage our core competency in reconciliation workflow, revenue enhancement, transaction risk management and compliance solutions into new profitable growth markets that will enhance our competitive position. In addition, the Company is continuing to evaluate potential acquisition opportunities that have a strong strategic fit with our business and which will drive growth and global scale in this business area.

Our management team is proven, capable and motivated. Our people are committed and eager to deliver success and value to you, our shareholders.

Moving onto shareholder communications, I would like to take the opportunity this afternoon to draw your attention to the Investor Relations section of our website. You will note that it includes sections overviewing our AGM, Corporate Governance and Shareholder Information. We are pleased with our website and believe that it utilizes the latest technological advancements to provide information regarding the company to our shareholders.

It is one of our ongoing objectives to ensure that we are proactive on the investor relations front and that all shareholders receive company information at the same time. A copy of this address will be posted on the Trintech Investor Website. The web is a unique tool which helps us achieve this goal and update our investors promptly and informatively. I would encourage you to visit our site www.trintech.com if you are not familiar with it.

I have shared with you today our review of Trintech over the last 12 months, Fiscal Year 2007 and through to the date hereof. Our experiences over the last year have reinforced our understanding of what we must do to deliver sustainable growth in the short and long term regardless of turbulent operating environments.

In the short term we must continue to run the business tightly, drive it hard, aggressively control costs and focus on reaching new customers profitably.

Looking to the future, the Group’s long term growth strategies must continue to be focussed and fully supported by management. We will continue to drive growth opportunities for our core business, concentrate on customer needs and focus on the delivery of shareholder value. With our continued determination and your support we strive to become one of the leading transaction process management providers globally.

Finally before we proceed with today’s main business I would like to reiterate that Trintech is a company steered by high calibre and committed people at all levels throughout the Group. I would like to take this opportunity to thank them, for all their hard work and pay tribute to their dedication during this challenging year. I would also like to thank you, our shareholders, for your courtesy to me at this meeting and for your continued support and commitment through your ownership of our stock.

With that I’d like to proceed with today’s voting which will be followed by a question and answer session.