Slide 1: Results presentation: Year ended 31 December 2013
For personal use only Business Software for Accountants and Accounting Software for Businesses Results presentation Year ended 31 December 2013 To be read in conjunction with the Appendix 4E and the Accounts
Slide 2: 2013 Achievements
2013 ACHIEVEMENTS For personal use only • Reckon One live • Road shows to support launch • Establish IT infrastructure to support cloud products • Rebrand Reckon Accounts • Advertising and road shows to support Reckon Accounts • Progress movement of all products onto subscription models • Management
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS For personal use only Year ended 31 December 2013 0% 1% 2% 3% 4% 5% REVENUE UP 1% to $98.1m EBITDA UP 4% to $35.3m NPAT UP 2% to $18.2m EPS UP 4% to 13.9 cents TOTAL DIVIDEND UP 3% to 8.75 cents pg 2
Slide 4: Group Trends by Division: Operating Revenue
GROUP TRENDS by division Year ended 31 December 2013 For personal use only Operating Revenue ($ MILLIONS) 0 10 20 30 40 50 60 Business 2013: 57.9m Division 2012: 58.3m Professional 2013: 23.5m Division (excl UK) 2012: 23.1m International 2013: 16.2m Divisions 2012: 13.2m Total 2013 98.1m Total 2012
Slide 5: Group Trends by Division: EBITDA
GROUP TRENDS by division Year ended 31 December 2013 For personal use only EBITDA ($ MILLIONS) -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 Business 2013: 20.2m Division 2012: 21.3m Professional 2013: 11.2m Division (excl UK) 2012: 11.4m International 2013: 5.7m Divisions 2012: 5.1m 2013: (2.2m) Corporat
Slide 6: Reckon Group
reckon group For personal use only 1ST HALF 2ND HALF FULL YEAR $ Millions $ Millions $ Millions 2013 Operating Revenue 49.5 48.6 98.1 2012 Operating Revenue 48.1 48.5 96.6 2013 EBITDA 18.7 16.6 35.3 2012 EBITDA 17.1 16.9 34.0 pg 5
Slide 7: Reckon Group: Major Revenue Movements
reckon group Major Revenue Movements For personal use only 1ST HALF 2ND HALF $ Millions $ Millions 2012 Operating Revenue 48.1 48.5 Australian Direct-SME Accounting Products 0.4 0.2 Australian Retail-SME Accounting Products (1.0) (0.4) Docs 0.5 0.3 APS (Aust + NZ) 0.3 0.1 APS UK (Business sold, repl
Slide 8: Business Division Results
Business division results Year ended 31 December 2013 For personal use only FULL YEAR 1ST HALF 2ND HALF $ MILLIONS $ MILLIONS $ MILLIONS Revenue 2013 $57.9 $29.9 $28.0 2012 $58.3 $30.4 $27.9 EBITDA 2013 $20.2 $10.7 $9.5 2012 $21.3 $11.0 $10.3 Revenue • Reckon Accounts direct revenue grew by 2% Price
Slide 9: Professional Division Results
PROFESSIONAL division results Year ended 31 December 2013 For personal use only FULL YEAR 1ST HALF 2ND HALF $ MILLIONS $ MILLIONS $ MILLIONS Revenue (Aust + NZ) 2013 $23.5 $11.9 $11.6 2012 $23.1 $11.4 $11.7 EBITDA (Aust + NZ) 2013 $11.2 $5.7 $5.5 2012 $11.4 $5.5 $5.9 Australia and New Zealand • Reve
Slide 10: International Divisions Results
International divisions results Year ended 31 December 2013 For personal use only FULL YEAR 1ST HALF 2ND HALF $ MILLIONS $ MILLIONS $ MILLIONS Revenue 2013 $16.2 $7.5 $8.7 2012 $13.2 $5.4 $7.8 EBITDA 2013 $5.7 $2.5 $3.2 2012 $5.1 $2.3 $2.8 Virtual Cabinet • Acquired July 2012 • 2nd half revenue +34%
Slide 11: Reckon Group: EBITDA Margin
reckon group EBITDA margin % For personal use only 2013 2012 Business 35.0% 36.7% Professional 48.2% 49.3% nQueue Billback 37.8% 42.3% Virtual Cabinet 30.0% 21.0% Group 36.0% 35.2% pg 10
Slide 12: Revenue Breakdown
revenue breakdown For personal use only Accounts Recurring Revenue 81% 7% 12% Full Product Revenue 78% recurring revenue prior year Service Revenue Docs (all new product sales) 100% Professional 78% 8% 14% 72% recurring revenue prior year nQueue Billback 80% 16% 4% 75% recurring revenue prior year V
Slide 13: Reckon Group: Cash Flow Highlights
reckon group Cash Flow Highlights - year ended 31 December 2013 For personal use only 2013 2012 $ MILLIONS $ MILLIONS Net debt $14.8 Operating cash flow $26.5 $24.0 Capitalised development cost expenditure ($13.1) ($9.6) Fixed asset acquisitions ($1.5) ($1.4) Sale of investment $1.7 – IP Acquisition
Slide 14: 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 15: 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 16: Business Division
business division For personal use only Reckon is an industry leader in accounting software solutions suitable for small to enterprise sized business in Australia and New Zealand. Reckon has developed a new cloud product called Reckon One to complement it’s existing desktop and hosted solutions. Rec
Slide 17: Reckon One website
Reckon{R) BUSINESS | ACCOUNTANT PERSONAL LEGAL = SUPPORT — OTHERS V J Login One ' h Get started free > Ee) Bo Australian Online Accounting Watch the video @) “Everyone has a dashboard but Reckon's feels more sophisticated and powerful than rivals" pg 16
Slide 18: Business Division: 2014 Opportunities
business division - 2014 opportunities For personal use only • Rebranded QuickBooks and Quicken now Reckon Accounts Revenue flat with signs of growth in 4th Qtr Growth of Hosted and Enterprise products expected to continue Benefit from royalty saving of circa $5m • Reckon One Reckon One release in A
Slide 19: Professional Division
professional division For personal use only Reckon is an industry leader in practice management software to accounting practices of all sizes. Reckons APS offers a truly integrated solution and is now well entrenched as the supplier of choice to the top tier of accounting firms by focusing on buildi
Slide 20: Professional Division: 2014 Opportunities
professional division - 2014 opportunities For personal use only • The move to a subscription model should increase the addressable market • Private Cloud, Virtual Cabinet and Workpaper Management modules have started to gain momentum • Continued acquisition of new customers (increase in market shar
Slide 21: International Divisions
International 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 and
Slide 22: International Divisions: 2014 Opportunities
International divisions - 2014 opportunities For personal use only • Virtual Cabinet Document Management Significant customer acquisition into the main markets in the UK (Accountants and Financial Planners) is expected to continue Expansion into Australia and New Zealand via other Reckon companies •
Slide 23: Strategic Focus
strategic focus • All products For personal use only Continue conversion to a subscription model Offer customer choice – Desktop, Hosted or Cloud • Reckon Accounts Organic growth particularly in Hosted and Enterprise offerings Lock in the benefit from the profit uplift in 2014 from no more royalties
Slide 24: Thank you / Questions
For personal use only thank you Questions