Slide 1: Results presentation, year ended 31 December 2014
For personal use only Business Software for Accountants and Accounting Software for Businesses Results presentation Year ended 31 December 2014. To be read in conjunction with the Appendix 4E 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, and supports over 6,000 partners. • The Accountant Group The supplie
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: Lots of opportunity
LOTS OF OPPORTUNITY RECKON ONE For personal use only • Most Affordable in market (unique pricing model). • New User Experience and new features (including payroll) launching soon. • Positive test-group feedback. • Launch imminent in UK. RECKON ACCOUNTS HOSTED • Continual Growth. APS • Sync Direct. •
Slide 5: Australian business opportunity
AUSTRALIAN BUSINESS OPPORTUNITY For personal use only CLOUD NOT CLOUD No. of SME’s 2,000,000 1,000,000 500,000 XERO MYOB INTUIT RECKON OPPORTUNITY pg 4
Slide 6: International opportunity
INTERNATIONAL OPPORTUNITY IN THE CLOUD For personal use only New Zealand 0.45m Australia 2m United Kingdom 4.3m North America 29m pg 5
Slide 7: 2014 achievements
2014 achievements Strike a balance between profit growth and investment into the business • EBITDA +10%, whilst: For personal use only Increasing investment in cloud infrastructure, sales capability and product development. Investing in the Reckon One launch in the UK and Virtual Cabinet into the US
Slide 8: Performance highlights
Performance highlights For personal use only Year ended 31 December 2014 0% 2% 4% 6% 8% 10% 12% REVENUE UP 3% to $100.8m EBITDA* UP 10% to $37.1m NPAT* UP 5% to $17.6m EPS* UP 11% to 14.2 cents TOTAL DIVIDEND UP 3% to 9.0 cents * Growth percentages exclude the impact of the profit on sale of the inv
Slide 9: Revenue growth
Revenue growth For personal use only Year ended 31 December 2014 2014 Growth 2013 Subscription product revenue 52.1m +11% 46.8m Other recurring revenue 14.3m -6% 15.2m Upfront and service revenue 13.9m -19% 17.2m Content revenue 20.5m +9% 18.9m 100.8m +3% 98.1m pg 8
Slide 10: Reckon group (normalised)
Reckon group Year ended 31 December 2014 (normalised) For personal use only 1ST HALF 2ND HALF FULL YEAR $ Millions $ Millions $ Millions 2014 Operating Revenue 51.1m 49.7m 100.8m 2013 Operating Revenue 49.5m 48.6m 98.1m 2014 EBITDA 19.3m 17.8m 37.1m 2013 EBITDA 17.4m 16.5m 33.9m pg 9
Slide 11: Business group results
Business group results Year ended 31 December 2014 For personal use only REVENUE 2014 Growth 2013 Subscription product revenue 16.3m +12% 14.5m Other recurring revenue 14.3m -6% 15.2m Upfront and service revenue 6.2m -19% 7.7m 36.8m -1% 37.4m EBITDA 19.1m +20% 16.1m Revenue • The business has been s
Slide 12: Accountant group results
Accountant group results Year ended 31 December 2014 For personal use only REVENUE 2014 Growth 2013 Subscription product revenue 22.3m +9% 20.4m Upfront and service revenue 3.4m -34% 5.2m Content revenue 20.5m +9% 18.9m 46.2m +4% 44.5m EBITDA 16.5m +1% 16.3m Revenue • 9% increase in number of practi
Slide 13: International group results
International group results Year ended 31 December 2014 For personal use only REVENUE 2014 Growth 2013 Subscription product revenue 14.0m +14% 12.2m Upfront and service revenue 3.8m -6% 4.0m 17.8m +9% 16.2m EBITDA 6.1m +19% 5.1m Revenue • Strong new customer acquisition in Virtual Cabinet. 25% incre
Slide 14: EBITDA margin
EBITDA margin Year ended 31 December 2014 (normalised) For personal use only 2014 2013 Business Group 52.1% 43.1% Accountants Group 35.6% 36.5% International Group 34.5% 31.6% Group 36.8% 34.5% pg 13
Slide 15: Cash flow highlights
Cash flow highlights Year ended 31 December 2014 For personal use only 2014 2013 Net debt $41.4m Operating cash flow $31.3m $26.5m +18% Capitalised development cost expenditure (net of grant) ($15.3)m ($13.1)m Fixed asset acquisitions ($0.8)m ($1.5)m Dividends paid ($10.7)m ($11.3)m Share Buyback ($
Slide 16: Group trends half year: revenue and EBITDA
Group Trends Half Year 2nd Half OPERATING REVENUE EBITDA For personal use only $ 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.
Slide 17: Group trends half year: NPBT and EPS
Group Trends Half Year 2nd Half NPBT EPS For personal use only $ 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 11.0
Slide 18: Future opportunities
Future opportunities For personal use only • Business Group Reckon Accounts: organic growth generated by the Hosted product. Reckon One: launch of the next version of the product in Q2. Reckon Pay: will be launched in collaboration with NAB in Q2. • Accountant Group Organic growth from building the
Slide 19: Thank you, Questions
For personal use only thank you Questions