Slide 1: Results presentation Half year ended 30 June 2013
For personal use only Results presentation Half year ended 30 June 2013 To be read in conjunction with the Appendix 4D and the Accounts
Slide 2: 2013 achievements
2013 achievements For personal use only 1. Rebranded QuickBooks + Quicken with no adverse revenue impact 2. Developed and launched Reckon One - positive feedback received (including in the UK) 3. Extended the APS Private Cloud solution - positive feedback received 4. Introduced Virtual Cabinet to al
Slide 3: Performance highlights
PERFORMANCE HIGHLIGHTS For personal use only Half year ended 30 June 2013 0% 2% 4% 6% 8% 10% 12% REVENUE UP 3% to $49.5m EBITDA UP 10% to $18.7m NPAT UP 10% to $10.2m EPS UP 11% to 7.9 cents INTERIM DIVIDEND UP 7% to 4.0 cents pg 2
Slide 4: Group trends by division: operating revenue
GROUP TRENDS by division Half year ended 30 June 2013 For personal use only Operating Revenue ($ MILLIONS) 0 5 10 15 20 25 30 Business 2013: 29.9m Division 2012: 30.4m Professional 2013: 12.1m Division 2012: 12.3m Process Automation 2013: 7.5m Divisions 2012: 5.4m Total 2013 49.5m Total 2012 48.1m p
Slide 5: Group trends by division: EBITDA
GROUP TRENDS by division Half year ended 30 June 2013 For personal use only EBITDA ($ MILLIONS) -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 Business 2013: 10.8m Division 2012: 11.0m Professional 2013: 5.9m Division 2012: 5.8m Process Automation 2013 2.5m Divisions 2012 2.3m 2013: (0.5m) Corporate* 2012 (2
Slide 6: Reckon Group major revenue movements
reckon group For personal use only Major Revenue Movements $ Millions Growth 2012 Operating Revenue 48.1 Australian Direct - SME Accounting Products 0.4 +3% Australian Retail - SME Accounting Products (1.0) -51% Docs 0.5 +6% APS (Aus + NZ) 0.3 +2% APS UK (business sold, replaced by royalty) (0.5) Vi
Slide 7: Reckon Group EBITDA margin
reckon group EBITDA margin % For personal use only 2013 2012 Accounts (including Docs) 35.9% 36.1% APS 49.0% 47.1% nQueue Billback 37.6% 42.4% Virtual Cabinet 25.3% - Group 37.8% 35.4% pg 6
Slide 8: Business division results
business division results Half year ended 30 June 2013 2013 2012 For personal use only $ MILLIONS $ MILLIONS Revenue $29.9 $30.4 EBITDA $10.8 $11.0 Accounts • Direct Revenue grew by 3% QuickBooks + Quicken rebranded with no impact on revenue Hosted + Enterprise were again the star performers Move to
Slide 9: Professional division results
PROFESSIONAL division results Half year ended 30 June 2013 For personal use only 2013 2012 $ MILLIONS $ MILLIONS Revenue (Aust + NZ) $11.8 $11.6 Revenue (UK) $0.2 $0.7 EBITDA $5.9 $5.8 Australia and New Zealand • Revenue growth 2% Subscription revenue growth 10% ($0.9m) Upfront revenue reduced by 20
Slide 10: Process automation divisions results
process automation divisions results Half year ended 30 June 2013 For personal use only 2013 2012 $ MILLIONS $ MILLIONS Revenue $7.5 $5.4 EBITDA $2.5 $2.3 Virtual Cabinet • Revenue up marginally on the previous half year Revenue is expected to be 2nd half weighted Focus on moving business to a subsc
Slide 11: Revenue breakdown
revenue breakdown For personal use only Accounts Recurring Revenue 80% 7% 13% Full Product Revenue 76% recurring revenue prior year Service Revenue Docs (all new product sales) 100% 0% recurring revenue prior year APS 75% 9% 16% 72% recurring revenue prior year nQueue Billback 81% 14% 5% 75% recurri
Slide 12: Reckon Group cash flow highlights
reckon group Cash Flow Highlights - half year ended 30 June 2013 For personal use only 2013 2012 $ MILLIONS $ MILLIONS Net debt $9.2 Operating cash flow $13.4 $11.0 Capitalised development cost expenditure ($6.1) ($4.1) Fixed asset acquisitions ($0.8) ($0.3) Dividends paid ($6.1) ($5.9) Cash spend o
Slide 13: Group trends: operating revenue and EBITDA
GROUP TRENDS For personal use only OPERATING REVENUE EBITDA $ MILLIONS $ MILLIONS 0 10 20 30 40 50 60 70 80 90 100 0 5 10 15 20 25 30 35 2006 22.9m 22.1m 2006 6.7m 6.3m 2007 28.0m 27.4m 2007 8.2m 8.3m 2008 31.2m 28.8m 2008 9.4m 9.6m 2009 43.3m 42.0m 2009 11.8m 13.3m 2010 46.5m 43.6m 2010 15.3m 14.9m
Slide 14: Group trends: NPBT and EPS
GROUP TRENDS NPBT EPS For personal use only $ MILLIONS CENTS 0 2 4 6 8 10 12 14 16 18 20 22 24 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2006 5.8m 5.2m 2006 3.3 2.9 2007 6.7m 6.6m 2007 3.8 3.7 2008 7.5m 7.6m 2008 4.2 4.3 2009 9.4m 9.6m 2009 4.6 5.3 2010 11.4m 11.0m 2010 6.3 6.1 2011 11.0m 11.2m 2011 6.1 6.
Slide 15: Reckon's unique positioning
reckon’s UNIQUE Positioning For personal use only 1. Customer choice We are and will continue to be a supplier of Desktop, Hosted & Cloud offerings 2. A “Designed for you” development methodology Flexibility and cost savings for clients 3. Relationship focused Strong relationships with customers and
Slide 16: Supplier of choice to progressive accountants and SMEs
For personal use only Supplier of choice to progressive accountants and SMEs Relationships Designed by you Desktop Engaged Hosted Connections Cloud Reckon Personality pg 15
Slide 17: Business division
business division For personal use only Reckon is an industry leader in accounting software solutions suitable for small to enterprise sized business. Reckon partners with over 6,000 accounting practices and has more than 600,000 registered businesses as customers in its Reckon Accounts business. +1
Slide 18: Reckon One goes to beta
reckon one goes to beta For personal use only The modular approach adopted in this recently launched product allows businesses to customise and configure a solution to meet specific requirements and therefore only pay for the functionality required. • Initial launch ~4,000 people at 19 venues in Aus
Slide 19: Business division opportunities
business division For personal use only Opportunities: Reckon One • New market catering to micro clients seeking a modern web based solution - strong response to launch • Opens up an opportunity to seek out new territories - positive feedback from UK presentations • Go to market strategy leverages o
Slide 20: Professional division
professional division For personal use only Reckon is an industry leader in practice management software to accounting practices of all sizes. Customer base: • 1,000+ customers use the APS suite • 3,000+ customers use the Reckon Elite suite Reckons APS offers a truly integrated solution and is now w
Slide 21: Professional division trends and opportunities
professional division For personal use only Customer trends are towards: • Hosting all of their IT requirements rather than having to manage their own infrastructure and internal IT teams. • Moving to subscription pricing model providing certainty and consistency around cost of IT purchases Opportun
Slide 22: Process automation divisions
Process automation divisions For personal use only Reckon is an industry leader in solutions to enhance business efficiencies for accountants, lawyers and businesses in general across the globe. • The combination of scan, document management and client portal solutions facilitates a paperless office
Slide 23: Process automation divisions opportunities
Process automation divisions For personal use only Opportunities: • Distribution of Virtual Cabinet into all markets serviced by Reckon companies • Market share expansion into large markets such as the USA (Pipelines are building) • Promote the latest scan and print solutions which are well suited f
Slide 24: Strategic focus
strategic focus • Reckon Accounts + Reckon Docs For personal use only Organic growth particularly in Hosted and Enterprise offerings as well as Docs content Lock in the benefit from the profit uplift in 2014 from no more royalties payable to Intuit • Reckon One Release product into a new and fast gr
Slide 25: Thank you
For personal use only thank you Questions