Slide 1: Results Presentation – twelve months ended 31 December 2019
For personal use only Results Presentation For the twelve months ended 31 December 2019 To be read in conjunction with Appendix 4E and Accounts
Slide 2: Presenters: Sam Allert, CEO and Chris Hagglund, CFO
For personal use only Sam Allert Chris Hagglund RECKON CEO RECKON CFO 2
Slide 3: Core areas of the business
Core areas of the business For personal use only BUSINESS PRACTICE MANAGEMENT PRACTICE MANAGEMENT GROUP - ACCOUNTANT GROUP - LEGAL GROUP Scan workflow, print An ecosystem for A platform for and cost recovery small businesses accountants solutions for legal firms We provide accounting software to Mar
Slide 4: Our Highlights
Our Highlights For personal use only Business Group Mobile APS Legal Cashflow Cloud Growth Growth Stabilisation Growth Improvement 38% increase in Launch of new Achieving stabilisation 9% revenue increase $7m reduction in net debt subscriptions, reaching payroll app (STP) of APS after period of 75,0
Slide 5: Results summary
Results summary For personal use only Revenue EBITDA NPAT 75.4 $ $30.6 $8.1 million million million Flat +5% +5% 5
Slide 6: Results summary
Results summary For personal use only FY19 FY18 Revenue 91% $M $M GROWTH SUBSCRIPTION REVENUE BUSINESS 29.6 27.8 +7% of available revenue is now subscription ACCOUNTANT 22.4 23.3 -4% LEGAL 9.0 8.4 +7% 61.0 59.5 OTHER REVENUE 14.4 15.9 -10% TOTAL REVENUE - CONTINUING BUSINESS 75.4 75.4 - OVERHEADS -
Slide 7: Business Group highlights
Business Group highlights For personal use only Strong 2nd half - 6% revenue growth Online user growth USERS Over 75k cloud users (38% annualised user growth). 75k 75K 9% cloud revenue growth over FY18. 70k 65k 47% of available revenue is now cloud. 60k 55k STP mobile app - 55k employees created in
Slide 8: Practice Management Accountant Group highlights
Practice Management Accountant Group highlights For personal use only Impressive customer list maintained. Reckon APS seat growth Major firms re-commited. 83k 82k 81k Substantial progress made on cloud product. 80k Reckon Docs market moving to subscription, market remains subdued. 71k Countries oper
Slide 9: Practice Management - Legal
Practice Management - Legal For personal use only WorkFlow expert in three key areas: Scan product showing strong potential with the • Advanced Uniform Scanning market now educated on the value of this product. • Print Management • Cost Recovery Traditional cost recovery product has stabilised and o
Slide 10: 2020 Strategic business initiatives
2020 Strategic business initiatives For personal use only Business Group Mobile Expand Legal Cloud Growth Growth Accountancy Reach Growth Continued R1 growth, Expand mobile suite Delivery of new cloud products Continued focus on the through digital marketing Scan and Print solutions Attract new clie
Slide 11: 2. Financial Update
2. Financial Update For personal use only Chris Hagglund RECKON CFO 11
Slide 12: Financial performance
Financial performance For personal use only FY19 FY18 GROWTH $M $M % Revenue 75.4 75.4 - Overheads 44.8 46.2* -3% EBITDA 30.6 29.2* +5% NPAT 8.1 7.7* +5% * Results are net of transaction costs. 12
Slide 13: Business financials
Business financials Subscription business with strong online growth. For personal use only Revenue FY19 FY18 Financial performance $M $M GROWTH • Revenue SUBSCRIPTION 29.6 27.8 +7% • ARPU impacted by faster growing Reckon One. Cloud unit growth of 38% in 2019. LOAN INCOME 0.9 0.9 -8% • Subscription
Slide 14: Practice Management Accountant Group Financials
Practice Management Accountant Group Financials For personal use only Subscription focus with an already impressive customer base. Revenue FY19 FY18 Financial highlights $M $M GROWTH • Revenue SUBSCRIPTION 22.4 23.3 -4% • Business stabilised following aborted sale. UPFRONT AND SERVICE 0.4 0.5 -11% •
Slide 15: Practice Management-Legal financials
Practice Management-Legal financials Impressive customer base with strong opportunity to grow scan & print markets For personal use only Revenue FY19 FY18 Financial highlights $M $M GROWTH • Revenue SUBSCRIPTION 9.0 8.4 +7% • Strong scan + print growth. UPFRONT AND SERVICE 2.7 2.4 +15% • Transition
Slide 16: Cashflow highlights and Development spend
Cashflow highlights Development spend For personal use only FY19 FY18 25 $M $M 22.8 20 19.6 OPERATING CASHFLOW 26.7 25.2 18.3 16.8 17.2 DEVELOPMENT SPEND (16.4) (14.3) 14.9 16.4 15 14.3 DEBT REPAID (7.0) (6.0) A$m DIVIDENDS PAID (3.4) (3.4) 10 LEASE PAYMENTS (AASB16) (1.9) - 5 Development spend on c
Slide 17: Continue our Plan - A Focus on Growth
Continue our Plan - A Focus on Growth For personal use only BUSINESS PRACTICE MANAGEMENT PRACTICE MANAGEMENT GROUP - ACCOUNTANT GROUP - LEGAL GROUP Scan workflow, print An ecosystem for A platform for and cost recovery small businesses accountants solutions for legal firms We provide accounting soft
Slide 18: Q&A
For personal use only Q&A 18
Slide 19: Resources
Resources For personal use only Website About us Investors Media reckon.com reckon.com/au/about-us reckon.com/au/investors reckon.com/au/media