Slide 1: Investor Overview
e e a INTUIT. brseny @iurbotax quickbooks @proconnect @mint it Investor Overview
Slide 2: Forward-looking statements
Forward-looking statements These presentation materials include forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled “Cautions about forward-looking statements” in the enclosed Appendix for
Slide 3: History of self-disruption and re-imagination
History of self-disruption and re-imagination ERA OF DOS ERA OF WINDOWS ERA OF WEB ERA OF MOBILE AND CLOUD TurboTax Live QuickBooks wi Online Global & Windows TurboTax QuickBooks QuickBooks w Windows Onl Mobile < = w QuickBooks TurboTax Comp. A Comp. A CompD Comp. G 2 - Windows Online Tax Prep SMB A
Slide 4: Focused on what matters most to our customers
Focused on what matters most to our customers OUR CONSUMER PROBLEMS OUR SMALL BUSINESS & SELF-EMPLOYED PROBLEMS NEED RANKING PROBLEM NEED RANKING | PROBLEM MAKE ENDS Have enough money to cover my bills & other GET CUSTOMERS 1 (AGRECGIITG) @ueaTTENS Gem el ttn, MAMET MEET obligations marketing expert
Slide 5: Key trends that can be a catalyst for growth
Key trends that can be a catalyst for growth Al REINVENTING FREE CONSUMER MID-MARKET USER EXPERIENCES FINANCE PLATFORMS MOVING TO CLOUD ADOPTION OF RISE OF OMNICHANNEL DIGITAL EXPERTISE i COMMERCE i ‘ e . i b . 2 e intuit.
Slide 6: Big Bets: Declared five bets to accelerate growth
Big Bets: Declared five bets to accelerate growth REVOLUTIONIZE SPEED TO BENEFIT CONNECT PEOPLE TO EXPERTS UNLOCK SMART MONEY DECISIONS BE THE CENTER OF SMALL BUSINESS GROWTH DISRUPT THE SMALL BUSINESS MID-MARKET inzult.
Slide 7: Integrity Without Compromise We Care & Give Back
Integrity Without Compromise We Care & Give Back Be Bold Be Passionate Be Decisive Learn Fast Win Together Deliver Awesome Prosperity Reputation Growth Double household savings rate and improve Best-in-class on Forbes’ Most >200M customers, SMB success rate > 10 pts vs. industry Reputable Companies
Slide 8: One Intuit Ecosystem
ONE INTUIT. ECOSYSTEM Unlocking the power of many for the prosperity of one ceiF-EM PLOYED More’Money A No'Work Complete. Confidence ANC EGA Isp, AL mt S TuTIONs | piarror® AlI-DRIVEN EXPERT PLATFORM Intuit.
Slide 9: Our strategy positions us to penetrate our addressable market
Our strategy positions us to penetrate our addressable market THREE BIG OPPORTUNITIES GROW THE CORE Our opportunity in consumer tax and SMB financial management software in the U.S. * Core markets: U.S. + Products (Do-it-yourself and Assisted): - QBO, QBSE, TurboTax - Connecting people to experts (T
Slide 10: Small Business & Self-Employed Group
Small Business & Self- Employed Group
Slide 11: Small Business and Self-Employed strategy
Small Business and Self-Employed s Grow the Core Grow and transform the Financial Management Software category in the U.S. through innovation and meeting customers where they are (DIY & Assisted) Goal: Delight customers, improve conversion, retention, and fuel franchise growth BECOME THE SOURCE OF T
Slide 12: Large market and opportunity to increase penetration
Large market and opportunity to increase penetration FY'18 FY'19 YoY IMPLICATIONS GLOBAL TOTAL ADDRESSABLE MARKET 800M+ 800M+ - Large global opportunity ("TAM") SERVICEABLE ADDRESSABLE P P m Ps Deploying the ecosystem and getting DAPVAe FP SEAUF) 85M 85M - to product market fit in BR, FR, IN US. U.K
Slide 13: Good progress with large opportunity ahead
Good progress with large opportunity ahead SMALL BUSINESS & SELF-EMPLOYED TOTAL QUICKBOOKS PAYING CUSTOMERS Fy'19 QBO SUBS QBO, DESKTOP SUBS, DESKTOP UNITS BY FY COUNTRY SAM 80 suBS GROWTH U.S. 48M 3.3M 25% 5.7M U.K. 5M 545k 78% Canada 3M 315k 48% Australia 3M 224k 39% Brazil 17M 59k 47% France 3M 2
Slide 14: Grow the core
Grow the core Se . . . woe . e Illustrative innovations driving customer impact QBO ADVANCED QBO ADVANCED pisrupT THE SMALL BUSINESS MID-MARKET Expanding target segment from 0-10 employees to 0-100 employees $40B mid-market opportunity across our ecosystem PPORTUNITY Citi 1.5M mid-market businesses
Slide 15: Connect the ecosystem
NEXT DAY PAYMEI & CAPITAL Get funding that fits your budget Connect the ecosystem Illustrative innovations driving customer impact NEXT DAY PAYMENTS & CAPITAL BE THE CENTER OF SMALL BUSINESS GROWTH $39B U.S. SMB Payments and Capital category 60% of SMBs struggle with cash flow; 82% of time this resu
Slide 16: Expand globally
Expand globally Strong growth in established markets U.S. Category expansion (e.g., mid-market); U.K. Rising compliance needs (e.g., Making CANADA Market shifting to cloud, embracing AUSTRALIA High category adoption; desire for OPPORTUNITY connecting customers Taxes Digital); scaling ecosystem benef
Slide 17: Expand globally: emerging markets
Expand globally Focused on nailing product market fit in emerging markets BRAZIL FRANCE Rapid cloud adoption, high Heavy compliance country INDIA Growing compliance OPPORTUNITY compliance needs and with substantial savings of needs, cloud adoption and large addressable base time and money via OBO. a
Slide 18: Execution of our strategy creates a path to robust long-term growth
Execution of our strategy creates a path to robust long-term growth THREE BIG OPPORTUNITIES GROW THE CORE Our opportunity to transform the category through innovation and by meeting customers where they are, spanning Self-Employed to Mid-Market and DIY to Assisted. * Core markets: U.S. * Products: Q
Slide 19: Consumer Group
Consumer Group
Slide 20: Deliver significant improvement in customer benefit
Deliver significant improvement in customer benefit wniut quickbooks ® 14 WORKERS $180B payroll intust @ proconnect. > 600K fscms >30M consumer returns $50B! in refunds Intult. cE\F-EMPLOY gE, f More‘Money No Work Complete Confidence @iurbotax. M UNIQUE > TAX FILERS 41.4M TurboTax units! $82B in ref
Slide 21: Consumer Group strategy to win
Consumer Group strategy to win Extend Transform Lead in DIY Assisted Category REVOLUTIONIZE CONNECT PEOPLE SPEED TO BENEFIT TO EXPERTS Data and Artificial Intelligence driven experiences that deliver “taxes are done” with no effort inturt, turbotax. intulT. Virtual expert platform that revolutionize
Slide 22: U.S. tax industry landscape
U.S. tax industry landscape Shifting our focus to growing total share of IRS returns 10-year U.S. tax industry trends (in M) 10-YR CAGR 3 155 +0.8% TOTAL IRS 15 142 449 143 145 145 147 149 15% 150 +0.6% Tax Stores TurboTax +2.0% (12.0%) FYO9 FY10 FY'1 FYI2 FY13 FY14 FYIS FY16 FYI7 FY'I8 FY9 Intult.
Slide 23: Opportunity: TurboTax Online U.S. acquisition funnel
Opportunity: TurboTax Online U.S. acquisition funnel TOTAL IRS RETURNS TRAFFIC TOTAL DIY RETURNS TTO LOGINS RETURNS FILED ATTRITION v \ 2am | INCREASED RETENTION +2 PTS AND NET ADDS BY 2.1M USERS 30.2M 32.3M YoY +1% +4% +4% +5% +7% (1%) IMPLICATIONS Growing our share of total IRS returns Tax reform
Slide 24: Gaining share of total returns with higher-end products
Gaining share of total returns with higher-end products TOTAL ADDRESSABLE MARKET (Tax) Peon CONSUMER $20B by Average revenue inturt, per return turbotax. Assisted ~$226 Return Revenue py sap 28% ~12% (+1pt) (+1pt) Intult. TURBOTAX U.S. AVERAGE REVENUE PER RETURN $70 $60 $50 $40 $30 $20 $10 $0 Focus
Slide 25: Extend our lead in DIY tax prep
Extend our lead in DIY tax prep @iurbotax. Revolutionize speed to benefit ENHANCEMENTS OPPORTUNITY 99M consumers open to file their taxes with DIY 65M actually filed with DIY software 45M logged into TTO Koop it up 32.3M filed with TTO ¢ job earning $10,500 on Oe eee We'll analyze milions of returns
Slide 26: Transform the assisted category
Transform the assisted category @iurbotaxiive Connect people to experts OPPORTUNITY $20B assisted tax preparation TAM 86M customers seek out filing assistance every year 10M estimated churn within the assisted category 3M filers defect annually from TurboTax for an assisted solution due to increased
Slide 27: Disrupt consumer finance
Disrupt consumer finance @Oitrbo O int Unlock smart money decisions alittle or alot profile > MARKETPLACE OPPORTUNITY $82B in refunds $180B in paychecks delivered 37M registered Turbo + Mint users 4M monthly active Turbo + Mint users ie bree $10B in USS. digital lead gen spend by FinTech and Fls STA
Slide 28: Execution of our strategy creates a path to robust long-term growth
Execution of our strategy creates a path to robust long-term growth KEY DRIVERS FOR GROWTH 1PT OF GROWTH GROWTH MULTI-YEAR DRIVERS YIELDS RANGE REVENUE OF IRS returns ~1% 0- 2% DIY Category ~3% 3-5% LONG-TERM 8 1 2% share EXPECTATION = 0 Total TurboTax 15% 12% CONSUMER GROUP ANNUAL REVENUE GROWTH sh
Slide 29: Delivering on our financial principles
Delivering on our financial principles
Slide 30: Financial principles remain enduring
Financial principles remain enduring GROW ORGANIC REVENUE DOUBLE DIGITS * Customer growth fueled by delivery of the customer benefit * Small business online ecosystem growth >30%; win every tax season OPERATING INCOME DOLLARS GROW FASTER THAN REVENUE * Revenue grows faster than expense + Acceptable
Slide 31: QBO and TTO platform revenue driving revenue growth
QBO and TTO platform revenue driving revenue growth auickBooks Online Hh TurboTax Online I Desktop + QBO andTTO platform revenue grew over 23% to $3.9B in FY'19 + Small business online ecosystem revenue grew 38% in FY'19 + ~80% of Intuit’s FY'20 revenue is expected to come from existing customers ~7
Slide 32: Strong monetization models across businesses
Strong monetization models across businesses Single platform that flexes to each customer's journey Now becoming “the source of truth for your business” ‘Ana stars with Q8O and payments for her potty tudo, Her marketing campaigns for Summer classes are going baterthanexpectod, 0 she takos loan throu
Slide 33: ARPC: Improved monetization over time
ARPC: Improved monetization over time FY'18 FY'19 FY'20- FY'22 ARPC ARPC EXPECTED TRAJECTORY A A INCREASE QuickBooks Online US $490 $553 Maturing base, online services and new product innovation (e.g. QB Live and QBO Advanced) QuickBooks Non - US INCREASE | auickBooksNon-us $123 $116 Maturing base,
Slide 34: Disciplined investment: Drives operating income growth
Disciplined investment: Drives operating income growth Focus is on durable customer and revenue growth; manage operating margin at Intuit level GAAP BASIS, UNLESS NOTED OTHERWISE Revenue Gross margin Sales & marketing Research & development General & administrative Operating income margin Operating
Slide 35: Overall capital allocation
Overall capital allocation (in billions) $3.4 =M&A Repay Debt $1.9 = Dividends ™ Share Repurchases $1.2 $1.3 mCapEx mz FY'16 FY'17 FY'18 FY'19 % of FCF returned 275% 87% 34% 49% to shareholders Intult. A HEALTHY MIX OF USES OF CAPITAL + Investing in organic growth drivers (R&D, infrastructure, sales
Slide 36: Share repurchase guiding principles
Share repurchase guiding principles Our intent is to be in the market each quarter, guided by these principles SHARE REPURCHASE IS USED TO RETURN CASH TO SHAREHOLDERS IN THE ABSENCE OF ACCEPTABLE INVESTMENT OPPORTUNITIES (1) At a maximum, we limit repurchase amounts to: * Cash in excess of liquidity
Slide 37: About non-GAAP financial measures
About non-GAAP financial measures The accompanying presentation contains non-GAAP financial measures. Table 1 and Table 2 reconcile the non-GAAP financial measures in that presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Princi
Slide 38: About non-GAAP financial measures (cont.)
About non-GAAP financial measures (cont.) The following are descriptions of the items we exclude from our non-GAAP financial measures. Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units, and our Employee Stock Purchase Plan. When consideri
Slide 39: GAAP to non-GAAP operating income and net income
(Dollars in millions, except per share amounts) Fiscal Fiscal 2019 2018* GAAP operating income $ 1,854 $ 1,560 Amortization of acquired technology 20 15 Amortization of other acquired intangible assets 6 6 Professional fees for business combinations 1 2 Loss on sale of long-lived assets - 79 Share-b
Slide 40: Free cash flow reconciliation
(Dollars in millions) Fiscal Fiscal Fiscal Fiscal 2016 2017 2018 2019 Net cash provided by operating activities $ 1,460 $ 1,599 $ 2,112 $ 2,324 Less capital expenditures: Purchases of property and equipment (416) (102) (38) (76) Capitalization of internal use software (106) (128) (86) (79) Total cap
Slide 41: Cautions about forward-looking statements
Cautions about forward-looking statements This presentation includes "forward-looking statements," which are subject to safe harbors created under the U.S. federal securities laws. All statements included in this presentation that address activities, events or developments that Intuit expects, belie