Slide 1: Results Presentation Half Year ended June 2011
For personal use only Results Presentation Half Year ended June 2011
Slide 2: For personal use only
eckon Limited Workpaper Management \) Professional Accounting ‘Tax Compliance & Workflow ¢ wy / Ga < Desktop Super 4 ~ S AF enterprise | {Platform QuickBooks) = Quicken ‘4 Financial & | Business V Payroll |, Intelligence/ } J Company |, Imaging " 4 Resource 4 i Planning , Document Management Relatio
Slide 3: Performance Highlights – Half Year Ended June 2011
For personal use only Performance Highlights – Half Year Ended June 2011 Operating revenue marginally up to $46.7m EBITDA (normalised) up 8% to $16.6m NPAT (normalised) up 5% to $9.3m EPS (normalised) up 7% to 6.8cents 3
Slide 4: Reckon Group – Major revenue movements
For personal use only Reckon Group – Major revenue movements Growth $m $m 2010 Operating revenue 46.5 Business Division – direct revenue +10% 1.6 Professional Division - Australia +7% 0.7 Foreign exchange impact (0.9) Business Division – retail revenue -25% (0.9) New Zealand and United Kingdom -9% (
Slide 5: Reckon Group – EBITDA margin
For personal use only Reckon Group – EBITDA margin 2011 2010 Business Division 37.5% 35.5% Professional Division 46.9% 41.3% nQueueBillback Division 38.3% 39.2% Group (normalised) 35.5% 33.0% 5
Slide 6: Reckon Group – Normalisation Adjustments
For personal use only Reckon Group – Normalisation Adjustments $m $m Impact on net profit before tax: Premises relocation costs* (1.9) (Expected future annual saving is $0.5m p.a.) Net settlement of Espreon litigation 0.6 Net impact on NPAT (0.9) * The net saving that will arise from the move to Nor
Slide 7: Cash Flow Highlights – months to June 2011
For personal use only Cash Flow Highlights – 6 months to June 2011 2011 2010 2009 Cash at June 2011 / Dec 2010 $3.3m $8.1m Operating cash flow $15.0m $15.8m $9.8m Development cost expenditure $3.5m $3.9m Amortisation of development costs & IP $3.5m $3.1m Investment in Melbourne IT1 $7.3m - Fixed ass
Slide 8: Revenue Breakdown – months to June 2011
For personal use only Revenue Breakdown – 6 months to June 2011 100% 90% 80% 53% 70% 60% 70% 71% Recurring 60% Revenue 50% Full Product (incl Corp 40% Services) 30% 36% Service 11% 28% Revenue 20% 22% 10% 19% 11% 12% 7% 0% Business Professional nQBB Group Prior year 50% 68% 63% 56% recurring revenue
Slide 9: Group trends
For personal use only Group trends Operating revenue EBITDA 100 35 90 30 80 70 43.6 25 42.0 14.9 60 20 $m 50 13.3 28.8 40 27.4 15 9.6 22.1 8.3 30 10 6.3 43.3 46.5 46.7 16.6 20 ` 15.3 28.0 31.2 5 11.8 10 22.9 8.2 9.4 6.7 0 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Half year Full y
Slide 10: Group trends
For personal use only Group trends NPBT EPS 25 14 20 12 11.0 10 15 6.1 9.6 $m 8 5.3 7.6 4.3 10 6.6 6 3.7 5.2 2.9 12.3 4 5 11.4 6.3 6.8 7.5 9.4 4.6 5.8 6.7 2 3.3 3.8 4.2 0 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Half year Full year Half year Full year Note: 2011 normalised 10
Slide 11: Business Summary
Business Division For personal use only Summary Revenue growth of 3% to $29.5m Represents 63% of Group Revenue EBITDA growth of 8% to $11.1m Product suite Business software suitable for SME’s through to larger enterprises, personal financial software, company secretarial services & practice manageme
Slide 12: Business Performance
Business Division For personal use only Performance Divisional revenue • Strong unit growth with an ongoing emphasis on expanding the subscription customer base Direct QuickBooks and • Volume increase 17% Quicken grew by 10% Online & enterprise volume increases were most significant Current number o
Slide 13: Business Opportunities
Business Division For personal use only Opportunities • Expectations remain for continued strong and steady growth to be maintained in our core products, driven in particular by: • High growth rates in the enterprise space • High growth rates in online users • Continued growth in traditional desktop
Slide 14: Professional Summary
Professional Division For personal use only Summary Revenue growth of 2% to $12.8m Represents 28% of Group Revenue EBITDA growth of 16% to $6.0m Product Suite Extensive suite of enterprise level practice software for accounting firms Cost recovery software, print solutions, expense management soluti
Slide 15: Professional Performance
Professional Division For personal use only Performance Divisional revenue • 30% of revenue derived from new customer sales/additional module rollout, despite difficult market conditions Australia • Australia has had a strong first half with the following features: • New revenue (software & consulti
Slide 16: Professional Opportunities
Professional Division For personal use only Opportunities Australia • Strong pipeline going into 3rd Quarter • New products gaining traction – average client only has 3 to 4 modules out of a possible 14 • Lite product expands the addressable market New Zealand • Large project for new Big 4 client wi
Slide 17: nQueueBillback Summary
nQueueBillback Division For personal use only Summary Revenue down by 16% to $4.3m (down by 4% in base currency) Represents 9% of Group Revenue EBITDA down by 18% to $1.7m Reckon holds a 74% shareholding in the USA and 75% in the UK Product suite Cost recovery software, print solutions, enhanced sca
Slide 18: nQueueBillback Performance
nQueueBillback Division For personal use only Performance Divisional revenue • 29% of revenue derived from new customer sales/additional module rollout, despite difficult market conditions United States of America Flat first half: • Revenue up by 1% in base currency • Revenue impacted by adverse FX
Slide 19: nQueueBillback Opportunities
nQueueBillback Division For personal use only Opportunities United States of America • Continued gain in market share • Prospects in the commercial market are building (including through reseller channel) • Expanded geographies/sales team • Mid sized legal market as yet untapped • Cloud based soluti
Slide 20: Group Online Strategy
For personal use only Group Online Strategy Personal & Micro • A new online offering has just been launched (CashBook), targeted at Businesses • Micro Businesses • Personal users • Features Simplicity, automatic feed of bank transactions and GovConnect (enables integrated, efficient and accurate lod
Slide 21: Strategic focus
For personal use only Strategic focus Organic growth • Opportunities continue to exist in: remains the key focus • Online products across all divisions for the group • Market share growth and market expansion • Rollout of existing products to existing customers Intuit • Development MOU with Intuit h
Slide 22: Questions
For personal use only Questions Thank you 22