Slide 1: Investor Presentation
Investor Presentation For the half year ended 30 June 2022 To be read in conjunction with Appendix 4D and Accounts
Slide 2: Overview
Overview Reckon Limited (ASX: RKN) is a software-as-a-service (SaaS) company providing cloud-based technology solutions to customers including SMEs and legal firms Investment highlights Practice Management Accountant Group sold for $100m effective 1 August 2022 Two remaining operating divisions targ
Slide 3: Corporate overview
Corporate overview Capital Structure Board of directors ASX code: RKN Shares on issue: 113.3m Greg Wilkinson Market capitalisation: $143m FOUNDER & NON-EXECUTIVE CHAIRMAN 52 week high – low: $0.805 - $1.38 Net debt: $13m Phil Hayman NON-EXECUTIVE DIRECTOR Major shareholders Novatti Group Limited 19.
Slide 4: Financial Results - Half Year 2022
Financial Results - Half Year 2022 (Total Group including discontinued operations) REVENUE ARR EBITDA NPAT $ 39 $ 36 $ 18 $ 6 million million million million +2% over PcP* +5% over PcP* +6% over PcP* +5% over PcP* NET DEBT REDUCED TO FULLY FRANKED DIVIDEND DEVELOPMENT INVESTMENT $ 13 3 cents $ 11 mi
Slide 5: Sale of the Accountants Group business for $100m
Sale of the Accountants Group business for $100m The sale of the Accountants Group, of which APS and Reckon Elite solutions where a part, allows us to focus on our core strengths of Accounting and Payroll for small businesses, and Practice Management for Legal firms. Sale of Accountants Group to The
Slide 6: Our focus is on two large and distinct markets
Our focus is on two large and distinct markets SMALL BUSINESS Accounting and Payroll solutions for SMEs Revenue of $39.9m and $20.4m EBITDA in FY21 Total addressable market 2,930,000 small businesses across Australia and New Zealand LEGAL Practice Management and Workflow for law firms Revenue of $9.
Slide 7: Financial Results – Half Year 2022 (Continuing operations)
Financial Results – Half Year 2022 (Continuing operations only) REVENUE ARR EBITDA $ 27 $ 24 $ 11 million million million +2% over PcP* +6% over PcP* +6% over PcP* NPAT DEVELOPMENT INVESTMENT $ 4 $ 8 million million +8% over PcP* * Non-IFRs: Growth has been normalised and is for continuing businesse
Slide 8: Ongoing cloud user growth
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Ongoing cloud user growth Small Business Cloud User Growth USERS 117k Continued growth in cloud revenue 120K 110K 117k Cloud users (10% annualised user growth) 100k Continued uptake of Reckon Payroll products across cloud and Mobile with over 400,000 90k emp
Slide 9: Access to the US legal market
PRACTICE MANAGEMENT AND WORKFLOW FOR LAW FIRMS Access to the US legal market Merger between nQueue and Zebraworks (now nQzebraworks), adds a skilled management team and complimentary cloud products to a well established, US focused legal business Opportunity to introduce cloud practice management su
Slide 10: Continued focus on employee engagement
Continued focus on employee engagement Employee Engagement Stats 91 % 96 % 88 % 89 % CARING JUSTICE ENGAGEMENT INNOVATION From Culture Amp study 80% From PWC study states 75% From Culture Amp 2022 survey: From PWC Workforce Study, 47% recommended their company as a believe diversity is stated as a v
Slide 11: Financial Highlights
Financial Highlights RECKON INVESTOR PRESENTATION HY 2022 11
Slide 12: Group financial performance and cash flow
Group financial performance and cash flow (Continuing operations) HY22 HY21 GROWTH HY22 HY21 $M $M % $M $M Revenue - normalised 27.0 26.5 +2% Operating Cashflow (before development) Continuing operations 11.2 10.8 Discontinued operations 5.3 5.9 EBITDA - normalised 11.1 10.4 +6% Development Spend Co
Slide 13: Business Group Financials
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Business Group Financials A subscription business with consistently strong online growth Financial performance Revenue HY22 HY21 $M $M GROWTH Revenue • Consistently strong cloud revenue growth CLOUD SUBSCRIPTION 11.3 10.4 9% • Annualised cloud unit growth: 1
Slide 14: Legal Group Financials
PRACTICE MANAGEMENT AND WORKFLOW FOR LAW FIRMS Legal Group Financials Growing subscription revenue and a top tier customer base Financial highlights Revenue HY22 HY21 $M $M GROWTH Revenue SUBSCRIPTION 4.4 4.2 +5% • Subscription is 86% of revenue UPFRONT AND SERVICE 0.7 0.9 -26% • Solid subscription
Slide 15: Accountant Group Financials
PRACTICE MANAGEMENT AND COMPLIANCE SOFTWARE FOR ACCOUNTING FIRMS Accountant Group Financials (Discontinued operations) Stable subscription revenue and an impressive customer base Financial highlights Revenue HY22 HY21 $M $M GROWTH Revenue SUBSCRIPTION 11.3 11.2 +1% • Division sold effective 1 August
Slide 16: Questions
Questions RECKON INVESTOR PRESENTATION HY 2022 16
Slide 17: Additional Information
APPENDIX ONE Additional Information HY22 HY21 GROWTH $M $M % Revenue Revenue from continuing operations at constant currency (Non-IFRs) 27.0 26.5 2% Discontinued operations 11.6 12.1 Currency impact - (0.3) Reported revenue 38.6 38.3 EBITDA EBITDA from continuing operations at constant currency (Non
Slide 18: Resources
Resources Website reckon.com About us reckon.com/au/about-us Investors reckon.com/au/investors Media reckon.com/au/media RECKON INVESTOR PRESENTATION HY 2022 18