Reckon Limited · ASX:RKN
Reckon — Goldman Sachs Conference 2011
17 slides from Reckon's conference presentation, May 17, 2011
Slide 1: Goldman Sachs Conference May 2011
For personal use only Goldman Sachs Conference May 2011
Slide 2: For personal use only
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Slide 3: Performance Highlights – Year Ended December 2010
For personal use only Performance Highlights – Year Ended December 2010 Operating revenue up 6% to $90.1m EBITDA up 20% to $30.2m NPAT up 27% to $17 $17.2m 2m 3
Slide 4: Group trends over last years
For personal use only Group trends over last 5 years Operating revenue EBITDA 100 35 90 80 30 70 43 6 43.6 25 60 42.0 14.9 20 $m 50 13.3 $m 27.4 28.8 40 15 9.6 30 22.1 8.3 10 63 6.3 20 ` 43.3 46.5 11.8 15.3 31.2 8.2 9.4 10 22.9 28.0 5 6. 7 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Half y
Slide 5: Group trends over last years
For personal use only Group trends over last 5 years NPBT EPS 25 14 12 20 10 11 0 11.0 6.1 15 9.6 8 cents 5.3 $m 7.6 6 4.3 10 6.6 3.7 5.2 2.9 4 5 9.4 11.4 4.6 6.3 7.5 2 3.8 4.2 5.8 6.7 3.3 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Half year Full year Half year Full year 5
Slide 6: Business Division Revenue
For personal use only Business Division Revenue Business software suitable for SME’s through to larger enterprises, personal financial software, content provider & practice software for smaller accounting firms Represents 62% of Group Revenue • Markets • Australia 96% • New Zealand 4% • Channels • D
Slide 7: Business Division – Growth Opportunities
For personal use only Business Division – Growth Opportunities • QuickBooks range – expect a continuation of strong and steady growth to be maintained in our core products, driven in particular by: • High growth rate in the enterprise space • High growth rates in online users • Roll out connectivity
Slide 8: Reckon products
Reckon Reckon Sphere Government Accountants QuickBooks’ Quicker ReckonElite ReckonDocs Reckon @nline . SS
Slide 9: Business Division - Risks
For personal use only Business Division - Risks • Retail market remains volatile from year to year • Poor retail market resulting in weak sell-through to end customers in 2011, and retailers are again de-stocking • This will result in lower sell-in to retail, despite market share growth • New Zealan
Slide 10: Professional Division Revenue
For personal use only Professional Division Revenue Extensive suite of enterprise level practice software for accounting firms Cost recovery software, print solutions, expense management solutions and other related modules targeted specifically to the legal profession in Australia only Represents 28
Slide 11: Professional Division – Growth Opportunities
For personal use only Professional Division – Growth Opportunities • Australia • Orders taken in Q1 are well up on Q1 in 2010 (delivered over the remainder of this year) • New products gaining traction – average client has 3 to 4 modules out of a suite of 14 modules • Mid market expansion opportunit
Slide 12: Professional Division - Risks
For personal use only Professional Division - Risks • Australia • Consulting team is still being rebuilt – revenue (capacity) lag in 2011 • New Zealand and United Kingdom • Both markets remain weak • Both impacted by adverse exchange rates 12
Slide 13: nQueue Billback Division Revenue
For personal use only nQueue Billback Division Revenue Cost recovery software, print solutions & expense management solutions and other related modules historically targeted at the legal profession, but now expanding to other industries Represents 10% of Group Revenue Markets: • USA 78% • UK 22% 74%
Slide 14: nQueue Billback Division – Growth Opportunities
For personal use only nQueue Billback Division – Growth Opportunities • Increased sales team and reseller relationships to target: • Continued market share growth • Expanded geographies in the USA and UK/Europe • Mid sized legal market • Commercial market – 1st Major Customer won • Q1 orders taken a
Slide 15: nQueue Billback Division – Risks
For personal use only nQueue Billback Division – Risks • United Kingdom – Market remains weak – Transition to new management team still in progress – Impacted by adverse exchange rate • USA – Impacted by adverse exchange rates 15
Slide 16: In summary
For personal use only In summary • We remain focused on continued organic growth arising from our substantial recurring revenue client base in all divisions • Continued gains in market share is expected in all divisions • New and exciting opportunities exist in: – SaaS offerings in all divisions – R
Slide 17: Questions
For personal use only Questions Thank you 17