Slide 1: Results Presentation for the year ended 31 December 2020
For personal use only Results Presentation For the year ended 31 December 2020 To be read in conjunction with Appendix 4E and Accounts
Slide 2: Presenters: CEO and CFO
For personal use only Sam Allert RECKON CEO Chris Hagglund RECKON CFO RECKON INVESTOR PRESENTATION FY 2020 2
Slide 3: Financial Results
Financial Results For personal use only REVENUE EBITDA NPAT $ 75.6 $ 32.6 $ 9.7 million million million +0.3% over PcP +6.6% over PcP +19.8% over PcP 85% subscription revenue NET DEBT REDUCTION FULLY FRANKED DIVIDEND DEVELOPMENT INVESTMENT $ 5.8 5 cents $ 19.5 million Full Year million RECKON INVEST
Slide 4: Our Operating Businesses
Our Operating Businesses Accelerating our unified cloud and mobile strategy by leveraging synergies across divisions, widening the addressable market and powering future growth opportunities. For personal use only Practice Management and Compliance for Accountants ACCOUNTANTS GROUP Small Business Ac
Slide 5: Investment in development for growth
Investment in development for growth For personal use only New cloud products released Cash spend on development increased with focus on cloud products across the group. 25 22.8 19.6 Bank Data for 17.2 19.5 Reckon One Payroll Reckon Mate APS and Reckon Mobile App Employee App 20 16.8 Accounts Hosted
Slide 6: Cloud User Growth - Business Group
Cloud User Growth - Business Group Cloud User Growth (excludes free STP mobile app) For personal use only USERS 110K 101K 100k Over 101k cloud users (35% annualised user growth). 90k Resulted in 3 consecutive half 80k years of solid growth for this division. (2020 : 7%) 70k 29% cloud revenue growth
Slide 7: Mobile and Employee Growth
Mobile and Employee Growth For personal use only Free STP Mobile App launched late May ‘19, already at 37k users; with 80k employees created in this app. Paid mobile Payroll App launched May ‘20, with 2k users. Reckon Mate launched Dec 2020 providing employee view of payroll information. Providing r
Slide 8: APS Cloud Development
APS Cloud Development Reckon APS seat growth For personal use only 85k 83k 82k 80k 81k Major cloud release of APS workflow which compliments APS suite and can also be sold as a stand alone product. Workflow compliments existing APS cloud 71k products; Sync Direct (data synchronising tool), Practice
Slide 9: Operational Highlights
Operational Highlights For personal use only Employee IPA Deadly Open Banking Engagement Partnership Digits UK certified 84% Employee Continued partnership Initiative with Open Banking Engagement. with IPA – 1200+ IPA QLD government UK certification member firms active supporting Indigenous successf
Slide 10: nQueue & ZebraWorks
nQueue & ZebraWorks We’ve added an amazing team and complimentary cloud products to our For personal use only already well established Legal business. Unlocking Growth potential with a Cloud Practice Cross sell synergies between Legal Group and Management Suite for Legal firms Accountant Group cloud
Slide 11: Sale of ReckonDocs Business
Sale of ReckonDocs Business The sale of ReckonDocs, allows us to focus on our core strengths of Accounting and Payroll for small businesses, and For personal use only Practice Management for Accounting and Legal firms. Sale of ReckonDocs assets to Class Limited for $13M This sale creates an opportun
Slide 12: Financial Highlights
For personal use only Financial Highlights RECKON INVESTOR PRESENTATION FY 2020 12
Slide 13: Financial performance
Financial performance For personal use only FY20 FY19 GROWTH $M $M % Revenue 75.6 75.4 +0.3% Overheads TOTAL 43.0 44.8 NORMAL 43.4 44.8 CARES LOAN FORGIVENESS (0.4) - OFFSETS TRANSACTION COSTS EBITDA 32.6 30.6 +6.6% NPAT 9.7 8.1 +19.8% RECKON INVESTOR PRESENTATION FY 2020 13
Slide 14: Business Group Financials
Business Group Financials Subscription business with consistently strong online growth. For personal use only Revenue FY20 FY19 Financial performance $M $M GROWTH Revenue CLOUD SUBSCRIPTION 19.8 15.3 29% • Cloud revenue growth continues at substantial rate. DESKTOP SUBSCRIPTION 13.8 14.3 -4% • Cloud
Slide 15: Practice Management Accountant Group Financials
Practice Management Accountant Group Financials For personal use only Stable subscription revenue and an impressive customer base. Revenue FY20 FY19 Financial highlights $M $M GROWTH Revenue SUBSCRIPTION 21.8 22.4 -3% • New business impacted by COVID. UPFRONT AND SERVICE 0.3 0.4 -37% • Content marke
Slide 16: Practice Management Legal Group Financials
Practice Management Legal Group Financials For personal use only Cloud journey ramps up with ability to leverage impressive customer base. Revenue FY20 FY19 Financial highlights $M $M GROWTH Revenue SUBSCRIPTION 8.8 9.0 -2% • Strong start to 2020, but new sales impacted by COVID from March (especial
Slide 17: Cashflow highlights
Cashflow highlights For personal use only FY20 FY19 $M $M Cash spend on development increased with focus on cloud OPERATING CASHFLOW 32.4 26.6 products across the group. DEVELOPMENT SPEND (19.5) (16.3) Fully Franked dividend of 2 cents DIVIDEND PAID (5.7) (3.4) to be paid in March. (5 cents Full Yea
Slide 18: Outlook
For personal use only Outlook RECKON INVESTOR PRESENTATION FY 2020 18
Slide 19: A focus on Growth
A focus on Growth For personal use only Practice Management and Compliance for Accountants ACCOUNTANTS GROUP A cloud suite for Accountants complimenting APS clients and opening up a larger addressable market. Small Business Accounting and Payroll BUSINESS GROUP Cloud growth across small business acc
Slide 20: Q&A
For personal use only Q&A RECKON INVESTOR PRESENTATION FY 2020 20
Slide 21: Resources
Resources For personal use only Website reckon.com About us reckon.com/au/about-us Investors reckon.com/au/investors Media reckon.com/au/media RECKON INVESTOR PRESENTATION FY 2020 21