Slide 1: Results presentation - Half year ended 30 June 2015
For personal use only Business Software for Accountants and Accounting Software for Businesses Results presentation Half year ended 30 June 2015 To be read in conjunction with the Appendix 4D and the Accounts
Slide 2: Reckon group
Reckon group For personal use only • The Business Group Develops and distributes accounting software solutions on either desktop, hosted or cloud platforms to small and medium sized businesses. It has over 300,000 active customers, supports 6,000 partners and has over 30,000 online users. • The Acco
Slide 3: Software that connects
SOFTWARE THAT CONNECTS For personal use only RECKON ONE SAAS - ONE LEDGER SMALL / MED APS / SYNC DIRECT ACCOUNTANT BUSINESS ONE PROCESS VIRTUAL CABINET ONLINE COLLABORATION & DOCUMENTS pg 2
Slide 4: 2015 achievements
2015 achievements Continued growth For personal use only • Revenue +6% • EBITDA +5%, whilst: Continuing investment in cloud infrastructure, sales capability and product development. Investing in the Reckon One launch in the UK and Virtual Cabinet into the USA. • EPS +8% • Operating cashflow +11% Sup
Slide 5: Future opportunities
Future opportunities Accountant Group For personal use only • Organic growth continues: New customers. Additional module cross sell. Docs products reach into the existing Accountant base. • New and relatively untapped sectors - Sync Direct, Private Cloud, Document Management. • Subscription pricing
Slide 6: Performance highlights
Performance highlights For personal use only Half year ended 30 June 2015 REVENUE + 6% to $54.0m EBITDA + 5% to $20.2m NPAT - 1% to $9.3m EPS + 8% to 7.9 cents pg 5
Slide 7: Revenue growth
Revenue growth For personal use only Half year ended 30 June 2015 2015 Growth 2014 Subscription product revenue 31.4m +21% 25.9m Other recurring revenue 4.8m -38% 7.8m Upfront and service revenue 6.5m -9% 7.2m Content revenue 11.3m +10% 10.2m 54.0m +6% 51.1m pg 6
Slide 8: Accountant group results
Accountant group results Half year ended 30 June 2015 For personal use only REVENUE 2015 Growth 2014 Subscription product revenue 11.8m +8% 11.0m Upfront and service revenue 1.1m -45% 2.0m Content revenue 11.3m +10% 9.8m 24.2m +6% 22.8m EBITDA 8.7m +3% 8.4m Revenue • Move towards a subscription mode
Slide 9: Business group results
Business group results Half year ended 30 June 2015 For personal use only REVENUE 2015 Growth 2014 Subscription product revenue 11.6m +42% 8.2m Other recurring revenue 4.9m -38% 7.8m Upfront and service revenue 3.0m -16% 3.6m 19.5m -1% 19.6m EBITDA 10.4m -3% 10.7m Revenue • Move to subscription aggr
Slide 10: International group results
International group results Half year ended 30 June 2015 For personal use only REVENUE 2015 Growth 2014 Subscription product revenue 8.0m +18% 6.8m Upfront and service revenue 2.3m +54% 1.5m Content revenue - 0.4m (moved to accountants group) 10.3m +19% 8.7m EBITDA 3.6m +44% 2.5m Revenue • Strong ne
Slide 11: EBITDA margin
EBITDA margin Half year ended 30 June 2015 For personal use only 2015 2014 Business Group 53.5% 54.7% Accountants Group 35.8% 36.6% International Group 35.5% 29.2% Group 37.5% 37.7% pg 10
Slide 12: Cash flow highlights
Cash flow highlights Half year ended 30 June 2015 For personal use only 2015 2014 Net debt $37.1m Operating cash flow $20.2m $18.1m Capitalised development cost expenditure (net of grant) ($8.9)m ($7.2)m 2nd Half 2014 ($8.1)m Capitalised internal systems ($0.8)m - Dividends paid ($5.3)m ($6.0)m Cash
Slide 13: Group Trends Half Year
Group Trends Half Year 2nd Half OPERATING REVENUE EBITDA EPS For personal use only $ MILLIONS $ MILLIONS CENTS 0 20 40 60 80 100 10 20 30 40 3 6 9 12 15 2009 43.3m 42.0m 2009 11.8m 13.3m 2009 4.6 5.3 2010 46.5m 43.6m 2010 15.3m 14.9m 2010 6.3 6.1 2011 46.7m 43.5m 2011 15.6m 15.7m 2011 6.1 6.0 2012 4
Slide 14: Future opportunities
Future opportunities Accountant Group For personal use only • Organic growth continues: New customers. Additional module cross sell. Docs products reach into the existing Accountant base. • New relatively untapped sectors - Sync Direct, Private Cloud, Document Management. • Subscription pricing incr
Slide 15: Thank you - Questions
For personal use only thank you Questions