Slide 1: Results presentation – Year ended 31 December 2012
For personal use only Results presentation Year ended 31 December 2012 To be read in conjunction with the Appendix 4E and the Accounts
Slide 2: Reckon's Unique Positioning
reckon’s UNIQUE Positioning For personal use only 1. Technology Supplier of Desktop, Hosted & Cloud offerings 2. A “Designed for you” development methodology 3. Relationships Strong relationships which is firmly integrated into the firms culture 4. Domain expertise provides best practice technology
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS For personal use only Year ended 31 December 2012 0% 2% 4% 6% 8% 10% 12% REVENUE UP 7% to $96.8m EBITDA UP 9% to $34.0m NPAT UP 6% to $17.8m EPS UP 11% to 13.4 cents TOTAL DIVIDEND UP 6% to 8.5 cents pg 2
Slide 4: Group Trends by Division – Operating Revenue
GROUP TRENDS by division For personal use only Year ended 31 December 2012 Operating Revenue ($ MILLIONS) 0 10 20 30 40 50 2012 - 40.4m Accounts 2011 - 40.5m 2012 - 25.1m APS 2011 - 23.2m 2012 - 17.9m Docs 2011 - 15.3m 2012 - 10.8m NQBB 2011 - 11.2m Virtual Cabinet 2012 - 2.4m Total 2012 96.6m Total
Slide 5: Group Trends by Division – EBITDA
GROUP TRENDS by division For personal use only Year ended 31 December 2012 EBITDA ($ MILLIONS) -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 Accounts 2012 - 21.3m (Including Docs) 2011 - 20.6m 2012 - 12.4m APS 2011 - 10.7m 2012 4.6m NQBB 2011 5.1m Virtual Cabinet 2012 - 0.5m 2012 (4.8m) Corporate Costs 20
Slide 6: Major Revenue Movements
reckon group For personal use only Major Revenue Movements $ Millions Growth 2011 Operating Revenue 90.2 Australian Direct - SME Accounting Products 2.0 +8% Docs 2.7 +17% APS 1.9 +8% Virtual Cabinet 2.4 - Australian Retail - SME Accounting Products (1.9) -36% Other (0.7) 2012 Operating Revenue 96.6
Slide 7: Group Half-Year Revenue and EBITDA
reckon group For personal use only 1ST HALF 2ND HALF FULL YEAR Operating Revenue 48.1m 48.5m 96.6m % growth 3% 11% 7% % split 50% 50% EBITDA 17.1m 16.9m 34.0m % growth 9% 9% 9% % split 50% 50% pg 6
Slide 8: Major Revenue Movements by Half
reckon group For personal use only Major Revenue Movements 1ST HALF 2ND HALF $ Millions $ Millions 2011 Operating Revenue 46.7 43.5 Australian Direct SME - Accounting Products 0.8 +7% 1.2 +10% Docs 1.4 +19% 1.3 +16% APS 0.7 +6% 1.2 +10% Virtual Cabinet - - 2.4 - Australian Retail - SME Accounting Pr
Slide 9: Divisional Results
reckon group Divisional results For personal use only Growth Growth 1ST HALF on prior 2ND HALF on prior $ Millions $ Millions half year half year BUSINESS DIVISION Operating revenue 30.4 +3% 27.9 +6% EBITDA 11.0 -1% 10.3 +9% PROFESSIONAL DIVISION Operating revenue 12.3 +6% 12.8 +10% EBITDA 5.8 +13%
Slide 10: EBITDA Margin %
reckon group For personal use only EBITDA margin % 2012 2011 Accounts (including Docs) 36.7% 36.9% APS 49.3% 46.0% nQueueBillback 42.3% 45.2% Virtual Cabinet 21.0% - Group 35.2% 34.7% pg 9
Slide 11: Revenue Breakdown
revenue breakdown For personal use only Accounts Recurring Revenue 78% 9% 13% Full Product Revenue 74% recurring revenue prior year Service Revenue Docs (all new product sales) 100% 0% recurring revenue prior year APS 72% 11% 17% 70% recurring revenue prior year nQueue Billback 75% 19% 6% 74% recurr
Slide 12: Cash Flow Highlights
reckon group For personal use only Cash Flow Highlights - year ended 31 December 2012 2012 2011 $ MILLIONS $ MILLIONS (Debt) / Cash ($9.1) $4.7 Operating cash flow (excluding tax) $30.5 $31.4 Tax payments ($6.5) ($4.6) Development cost expenditure ($9.6) ($7.4) Acquisitions / Investments bought and
Slide 13: Cash Spend on Development
reckon group For personal use only Cash spend on development 2012 2011 $ MILLIONS $ MILLIONS Capitalised $9.3 $7.4 Expensed $1.2 $2.3 Existing products $10.5 $9.7 New products - VC 0.3 - Total $10.8 $9.7 • Development spend remains consistent • New Saas product (Reckon One) will be ready for launch
Slide 14: Group Trends – Operating Revenue and EBITDA
GROUP TRENDS For personal use only OPERATING REVENUE EBITDA $ MILLIONS $ MILLIONS 0 10 20 30 40 50 60 70 80 90 100 0 5 10 15 20 25 30 35 2006 22.9m 22.1m 2006 6.7m 6.3m 2007 28.0m 27.4m 2007 8.2m 8.3m 2008 31.2m 28.8m 2008 9.4m 9.6m 2009 43.3m 42.0m 2009 11.8m 13.3m 2010 46.5m 43.6m 2010 15.3m 14.9m
Slide 15: Group Trends – NPBT and EPS
GROUP TRENDS For personal use only NPBT EPS $ MILLIONS CENTS 0 2 4 6 8 10 12 14 16 18 20 22 24 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2006 5.8m 5.2m 2006 3.3 2.9 2007 6.7m 6.6m 2007 3.8 3.7 2008 7.5m 7.6m 2008 4.2 4.3 2009 9.4m 9.6m 2009 4.6 5.3 2010 11.4m 11.0m 2010 6.3 6.1 2011 11.0m 11.2m 2011 6.1 6.
Slide 16: Australia and New Zealand – Accounts and Docs
reckon australia and new zealand For personal use only Accounts • Direct Revenue grew by 8% Unit growth 18% Price/mix reduction of (10%) • Hosted products grew 67% • Enterprise grew 16% Units up 32% • Retail continues to be a declining market down 36% • Mix and retail impact expected to reduce over
Slide 17: Accounts continued – Intuit agreement and Reckon One
reckon australia and new zealand For personal use only Accounts continued... • Renegotiated the Intuit distribution agreement to include No royalty payments after Feb 2014 Perpetual licence agreement Trade off is our Product Names need to change Have already changed our “Quicken Suite” to Reckon Acc
Slide 18: Australia and New Zealand – APS
reckon australia and new zealand For personal use only APS • Revenue growth 8% • Strong results in both Australia and NZ • Retained its position as a supplier of choice to top firms built on strong relationships • Continued acquisition of new clients (market share growth) • Stepped up rollout of the
Slide 19: International – Virtual Cabinet
reckon international For personal use only Virtual Cabinet • Acquired Virtual Cabinet in the UK which develops and distributes Document Management and Client Portal technology • 1st 6 months performance as expected • Continued growth momentum in UK market • Investment in resources to rollout to Aust
Slide 20: International – nQueue Billback
reckon international For personal use only nQueue Billback • Strong growth achieved in UK • Added new clients in USA but average price per new client reduced in 2012 • NQBB development rollout was delayed in 2012 and we expected to rollout a refreshed product in 2013 which will give us incremental s
Slide 21: Strategic Focus
strategic focus For personal use only • Reckon Accounts Lock in the benefit from the profit uplift in 2014 from no more royalties payable to Intuit Complete the rebranding and renaming project Continue to grow sales by building out our direct sales force • Release Reckon One into a new and fast grow
Slide 22: Strategic Focus continued
strategic focus continued... For personal use only • Move NQBB into a stronger growth position Product refresh should give them new client and cross sell opportunities Investigate opportunities for Document Management into the broader US market • Reckon’s financial strength and proven track record g
Slide 23: Thank you – Questions
For personal use only thank you Questions