Slide 1: Results Presentation Half Year Ended June 2009
For personal use only Results Presentation Half Year Ended June 2009 Clive R Cli Rabie bi – Group G CEO Chris Hagglund – Group CFO Brian Armstrong – CEO Professional Division Gavin Dixon – CEO Business Division
Slide 2: Overview
For personal use only Overview • Reckon is taking strong strides towards achieving its mission: “to be the leading Australian provider of best of Class”: – Accounting Software Solutions – Personal wealth management solutions – Practice Management Solutions for professionals – Content and service pro
Slide 3: Performance Highlights – 6 months to June 2009
For personal use only Performance Highlights – 6 months to June 2009 Reckon Group Operating revenue up 39% to $43.3m EBITDA* up 37% to $12.9m** NPAT* up 25% to $7.0m Business Division Professional Division BillBack USA Operating revenue up 25% to $25 $25.7m 7m Operating revenue up 36% to $14 $14.4m
Slide 4: Performance Highlights
For personal use only Performance Highlights – 6 months to June 2009 • Operating cash flow $9 $9.8m 8m (+19%) • Operating cash flow before restructure costs and tax payments (+43%) • Balance sheet effectively not geared • Interim I t i dividend di id d off 3.0 3 0 cents t per share h ((+20%) 20%) •
Slide 5: Major focus on expense management
For personal use only Major focus on expense management – 6 months to June 2009 Staff costs & Marketing other overheads Half year ended June 2008 $3.0m $13.7m Acquired – Corporate Services & Billback $0 4m $0.4m $5 7m $5.7m Impact of exchange rates $0.1m $0.3m Half year ended June 2008 restated $3.5
Slide 6: Business acquisition restructure costs
For personal use only Business acquisition restructure costs – 6 months to June 2009 2009 Surplus premises $0.5m Staff redundancy and other staff costs $0.6m Oth residual Other id l costs t $0 1 $0.1m TOTAL $ $1.2m 6
Slide 7: Trends over last years: Operating revenue and EBITDA
For personal use only 6 month trends over last 5 years Operating revenue EBITDA 70 20 60 50 15 40 $m $m 10 30 20 43.3 12.9 5 10 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Half year Full year Half year Full year Cumm Growth 99% Cumm Growth 132% 7
Slide 8: Trends over last years: NPBT and EPS
For personal use only 6 month trends over last 5 years NPBT EPS 16 9 14 8 12 7 10 6 cents 5 $m 8 4 6 9.4 3 4 5.2 2 2 1 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Half year Full year Half year Full year 8
Slide 9: Margin trends
For personal use only Margin trends – 6 months to June 2009 2005 2006 2007 2008 2009 EBITDA 5.5m 6.7m 8.2m 9.4m 12.9m Margin g 25% 29% 29% 30% 30% The current year has been impacted by: • The inclusion of the Corporate Services business. This business incurs a proportionately higher level of COGs du
Slide 10: Cash Flow Highlights
For personal use only Cash Flow Highlights – 6 months to June 2009 2009 2008 Cash/(Borrowings) at June 2009 / Dec 2008 ($0 6m) ($0.6m) $16 1m $16.1m Operating cash flow $9.8m $8.2m +19% p g cash flow before restructure costs Operating $10.3m $8.2m +25% Operating cash flow before restructure costs &
Slide 11: Revenue Breakdown
For personal use only Revenue Breakdown – 6 months to June 2009 100% 90% 80% 46% 54% 70% 65% 60% Recurring Revenue 50% Full Product Service Revenue 40% 42% 30% 32% 17% 20% 10% 18% 12% 14% 0% Professional Business Group Prior year recurring 59% 58% 58% revenue 11
Slide 12: Business Division
For personal use only Business Division 12
Slide 13: Business Division
For personal use only Business Division – 6 months to June 2009 2009 2008 Operating revenue $25.7m $20.6m Operating revenue growth 25% U d l i business Underlying b i revenue decline d li (6%) EBITDA $7.5m $6.1m EBITDA growth 23% Underlying business EBITDA growth 1% 13
Slide 14: Business Division
For personal use only Business Division – 6 months to June 2009 Reckon Market Underlying business revenue decline (6%) QuickBooks Enterprise 24% Elite 21% Direct revenue growth 7% QuickBooks (excl Enterprise) 4% Retail revenue decline (34%) GFK - Retail Sell Thru Units (16%) (17%) GFK – Mix Mi and d
Slide 15: Business Division (Corporate Services)
For personal use only Business Division (Corporate Services) – 6 months to June 2009 2009 Operating revenue $6 3m $6.3m EBITDA $1.4m New company formations (ASIC) (8%) 15
Slide 16: Business Division - 2009 Highlights
For personal use only Business Division - 2009 Highlights g g • Release of QuickBooks 2009 QBi Series • Consolidating C lid ti 2008 QBi release l • Scalable to mid-size enterprises • Enhanced security to enable QuickBooks Online release • Strong growth from QuickBooks customer base especially Enterp
Slide 17: Key 2009 Strategies
For personal use only Key 2009 Strategies • Leverage QuickBooks 2009 QBi Series release • Leverage scalability of QuickBooks Enterprise Edition • Leverage launch of QuickBooks Online service • Continue to grow Espreon Corporate Services market share • Complete branding change to Reckon Docs • Launch
Slide 18: Professional Division (excludes BB USA)
For personal use only Professional Division (excludes BB USA) 18
Slide 19: Professional Division
For personal use only Professional Division – 6 months to June 2009 2009 2008 Operating revenue $14 4m $14.4m $10 6m $10.6m Operating revenue growth 36% y g business revenue growth Underlying g 8% EBITDA $6 1m $6.1m $4 6m $4.6m EBITDA growth 31% y g business EBITDA g Underlying growth 8% 19
Slide 20: Professional Performance
For personal use only Professional Performance – 6 months to June 2009 Software revenue Growing Maintenance Revenue Stream • Reflects impact of continued new business growth Growth in New Clients • Maintained a strong pipeline Growth in sales to existing clients • Reflects success of adding new prod
Slide 21: Professional Division - 2009 Highlights
For personal use only Professional Division - 2009 Highlights • Continued success with high demand for new products • Continued strong pipeline and order book • Supplier of choice to leading firms – continue to win majority of leading firms’ considering a solution or platform change • Significant gr
Slide 22: Key 2009 Strategies
For personal use only Key 2009 Strategies • Further expansion of integrated product suite • Further growth in market share • Leverage APS & Billback opportunities in all countries • Continue focus on existing clients • New Products available in 2009 •Advance Advance Company Register •.Net Tax •Billb
Slide 23: For personal use only
For personal use only QuickBooks Business Financial Intelligence & Payroll Workpaper Resource Management Planning Professional Document Accounting Management Client Cli Tax Relationship Management Compliance & Workflow Practice Management Business Process Automation Desktop Super Expense Management
Slide 24: BillBack USA
For personal use only BillBack USA – 6 months to June 2009 2009 Operating revenue $3 2m $3.2m EBITDA $0.9m Maintenance Revenue $1.9m New Revenue $1.3m On 1st July BB USA merged with NQ USA USA. Reckon owns 67% of JV Rationale: •Merged g 3rd & 4th largest g p players y •Best of breed product with des
Slide 25: Future Opportunities
For personal use only Future Opportunities • Continued organic growth • Professional division – leverage full product suite including cost management solution opportunities • Business division – continue to leverage enterprise and online offerings • Further roll out of integrated compliance and secr
Slide 26: Questions
For personal use only Questions Thank you 26