Slide 1: Investor Presentation
Investor Presentation For personal use only For the year ended 30 June 2023 To be read in conjunction with Appendix 4D and Accounts
Slide 2: Disclaimer
Disclaimer This information contained within this document is in summary form and does not purport to be complete. It should be read in conjunction with Reckon Limited’s periodic reporting and other announcements made to the Australian Securities Exchange. For personal use only Information provided
Slide 3: Overview and Investment highlights
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 Strong earnings profile for the continuing operations For personal use only - $28m in revenue generated in 1st Hal
Slide 4: Corporate overview
Corporate overview Capital Structure Board of directors ASX code: RKN Shares on issue: 113.3m Clive Rabie Market capitalisation: $58m NON-EXECUTIVE CHAIRMAN For personal use only Share price high – low post special $0.46 to $0.68 dividend: Net debt: $0.3m Greg Wilkinson FOUNDER & NON-EXECUTIVE DIREC
Slide 5: 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 For personal use only Total addressable market 3 million small businesses across Australia and New Zealand LEGAL Practice Management and Workflow for law firms Total addressable market 500 of the
Slide 6: Financial Results – Half Year 2023
Financial Results – Half Year 2023 (Continuing operations only) REVENUE RECURRING REVENUE EBITDA $ 28 $ 26 $ 11 For personal use only million million million +4% over PcP +5% over PcP +3% over PcP NPAT DEVELOPMENT INVESTMENT DIVIDEND $ 4 $ 7 2.5 million million cents +16% over PcP per share fully fr
Slide 7: Accounting and Payroll Solutions for SMEs: Cloud revenue growth of 6%
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Cloud revenue growth of 6% Servicing start ups, gig-economy, small and Small Business Cloud User* Growth CLOUD medium sized businesses with accounting, USERS REVENUE payroll, and business management tools 120K $25m $23.7m Strong cash generating business with
Slide 8: Transition to Reckon One codebase underway
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Transition to Reckon One codebase underway Increased focused on the transition to Ongoing product enhancements creating the Reckon One codebase now underway more valuable solutions for SME’s and since the completion of Single Touch employees Payroll 2.0 upgr
Slide 9: Growth business in large US and global markets
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Growth business in large US and global markets Servicing Legal firms with workflows through scanning Subscription revenue growth For personal use only & printing, Practice Management, cost recovery and analytics solutions $5.3M Enormous market opportu
Slide 10: Upgrade to core product suite and investment in new cloud solutions
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Upgrade to core product suite and investment in new cloud solutions providing growth opportunity in large US Legal market Core products upgraded to take advantage of Newer platform solutions can be cross sold into Core increased market interest and op
Slide 11: Financial Highlights
For personal use only Financial Highlights RECKON INVESTOR PRESENTATION HY 2023 11
Slide 12: Group financial performance and cash flow
Group financial performance and cash flow (Continuing operations) HY23 HY22 GROWTH HY23 HY22 $M $M % $M $M Revenue 28.2 27.0 +4% Operating Cashflow (before development) For personal use only Continuing operations 11.1 11.2 Discontinued operations - 5.3 EBITDA 11.0 10.7 +3% Development Spend Continui
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 HY23 HY22 $M $M GROWTH Revenue For personal use only CLOUD SUBSCRIPTION 12.0 11.3 6% • Consistently strong cloud revenue growth • Subscript
Slide 14: Legal Group Financials
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Legal Group Financials Growing subscription revenue and a top tier customer base Financial highlights Revenue HY23 HY22 CONSTANT CURRENCY $M $M GROWTH GROWTH Revenue For personal use only SUBSCRIPTION 5.3 4.4 +19% +13% • Strong subscription growth UPF
Slide 15: Questions
For personal use only Questions RECKON INVESTOR PRESENTATION HY 2023 15
Slide 16: Resources
Resources Website reckon.com For personal use only About us reckon.com/au/about-us Investors reckon.com/au/investors Media reckon.com/au/media RECKON INVESTOR PRESENTATION HY 2023 16