Slide 1: Results Presentation Year Ended December 2009
For personal use only Results Presentation Year Ended December 2009 Clive R Cli Rabie bi – Group G CEO Chris Hagglund – Group CFO Brian Armstrong – CEO Professional Division Gavin Dixon – CEO Business Division
Slide 2: Overview
For personal use only Overview • Reckon is taking strong strides towards achieving its mission: “to be the leading provider of best of Class”: – Accounting software solutions – Content and service provider for the professionals – Personal wealth management solutions – Practice management solutions f
Slide 3: Performance Highlights - year ended December 2009
For personal use only Performance Highlights g g –y year ended December 2009 Reckon Group Operating revenue up 42% to $85.3m EBITDA* up 38% to $26.1m** NPAT* up 27% to $14.4m Business Division Professional Division nQueueBillback Operating revenue up 29% to $49.9m Operating revenue up 32% to $28.1m
Slide 4: Performance Highlights
For personal use only Performance Highlights g g –y year ended December 2009 • Operating cash flow before business acquisition restructure costs and catch-up catch up tax payments (+25%) • Operating cash flow $18.9m (+16%) • Net debt $nil • Final dividend of 4.0 cents per share • T t l 2009 dividend
Slide 5: Major focus on expense management
For personal use only Major focus on expense management – year ended December 2009 Staff costs & Marketing other overheads December 2008 $4.4m $27.0m Acquired – Corporate Services & Billback $0.6m $12.2m December 2008 restated $5.0m $39.2m Cost reductions ($1.9m) ($2.0m) -9% December 2009 $3.1m $37.
Slide 6: Business acquisition restructure costs - 2009
For personal use only Business acquisition restructure costs – year ended December 2009 2009 Surplus premises, moving costs, asset writedowns $0.4m Staff redundancy and other staff costs $0.6m Oth residual Other id l costs t $0 2 $0.2m Tax effect ($0.4m) TOTAL $ $0.8m 6
Slide 7: Trends over last years
For personal use only Trends over last 5 years Operating revenue EBITDA 90 30 80 25 70 42.0 60 20 13 2 13.2 50 $m $m 28.8 15 9.6 40 27.4 22.1 8.3 30 19.7 10 6.3 20 43 3 43.3 4.6 ` 31.2 9.4 12 9 12.9 28.0 5 8.2 10 21.7 22.9 5.5 6.7 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Half year Full
Slide 8: Trends over last years
For personal use only Trends over last 5 years NPBT EPS 20 12 18 16 10 14 9.6 8 53 5.3 12 7.6 cents 4.3 $m 10 6.6 6 3.7 8 5.2 2.9 4.0 4 6 2.6 4 7.5 94 9.4 5.2 6.7 2 4.2 5.2 5.8 3.3 3.8 2 2.5 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Half year Full year Half year Full year 8
Slide 9: Margin trends
For personal use only Margin trends – year ended December 2009 2005 2006 2007 2008 2009 EBITDA 10.1m 13.0m 16.5m 19.0m 26.1m Margin g 24% 29% 29% 31% 31% The current year has been impacted by: • The inclusion of the Corporate Services business. This business incurs a proportionately higher level of
Slide 10: Cash Flow Highlights
For personal use only Cash Flow Highlights – year ended December 2009 2009 2008 Cash/(Borrowings) at Dec 2009 / Dec 2008 - $16 1m $16.1m Operating cash flow $18.9m $16.3m +16% Operating p g cash flow before business acquisition q $24 3 $24.3m $19 4 $19.4m +25% restructure costs & tax paid Acquisitio
Slide 11: Revenue Breakdown
For personal use only Revenue Breakdown – year ended December 2009 100% 90% 80% 49% 58% 56% 70% 66% R e curring 60% R e ve nue 50% F ull P ro d uct (2 0 0 9 includ e s 40% C o rp S e rv) S e rvice R e ve nue 30% 40% 31% 15% 31% 20% 10% 19% 11% 11% 14% 0% Professional Business nQ BB G roup Prior year
Slide 12: Business Division
For personal use only Business Division 12
Slide 13: Business Division
For personal use only Business Division – year ended December 2009 2009 2008 Operating revenue $49.9m $38.6m Operating revenue growth 29% U d l i business Underlying b i revenue decline d li (2%) EBITDA $15.9m $12.3m EBITDA growth 29% Underlying business EBITDA growth 9% 13
Slide 14: Business Division
For personal use only Business Division – year ended December 2009 Reckon Market Underlying business revenue decline (2%) QuickBooks Enterprise & online 29% Elite 14% Other Direct revenue growth 7% Retail revenue decline (35%) Gfk - Retail Sell Thru Units* (12%) (13%) * Ist half decline 16%; 2nd hal
Slide 15: Business Division (Corporate Services) - Year ended December 2009
For personal use only Business Division (Corporate Services) – Year ended December 2009 2009 Operating revenue $12.0m EBITDA $2.5m 15
Slide 16: Business Division - 2009 Highlights
For personal use only Business Division - 2009 Highlights • Release of QuickBooks 2009 QBi Series • Consolidating 2008 QBi release • Scalable to mid-size mid size enterprises • Strong growth from QuickBooks customer base especially Enterprise • Revenue Growth 29% • Continued success with Elite produ
Slide 17: Key 2010 Strategies
For personal use only Key 2010 Strategies • Leverage QuickBooks 2010 QBi series release • Broad user acceptance now achieved • Increasing organic growth • Attractive new capabilities and offerings • Leverage scalability of QuickBooks Enterprise Edition • Expand QuickBooks Online service • Expand Eli
Slide 18: Professional Division
For personal use only Professional Division 18
Slide 19: Professional Division
For personal use only Professional Division – year ended December 2009 2009 2008 Operating revenue $28 1m $28.1m $21 3m $21.3m Operating revenue growth 32% Underlying business revenue growth 9% % (before negative FX impact of 2%) Billback Aust and UK revenue $5.3m EBITDA $11.6m $9.2m EBITDA growth 2
Slide 20: Professional Performance - Software revenue
For personal use only Professional Performance – y year ended December 2009 Software revenue • Reflects impact of continued new business growth • Reflects success of product extension and G ro w in g M ain ten an ce R ev en u e Stream integration strategies in challenging market G ro w th in N ew C
Slide 21: Professional Division - 2009 Highlights
For personal use only Professional Division - 2009 Highlights g g • Continued success with product extension and integration strategies • 5 new products added • 2nd Big Four firm successfully implemented • Supplier of choice to leading firms • Continue to win majority of leading firms’ considering a
Slide 22: Advance Suite Accounting
For personal use only Advance Suite Accounting 22
Slide 23: Advantage Suite Legal
For personal use only Advantage Suite Legal 23
Slide 24: Professional Division - 2010 Strategies
For personal use only Professional Division – 2010 Strategies • Continued rollout of integrated compliance and practice management suite • Leverage expanded Legal product suite • Cross sell opportunities • ACR • Company formations • QuickBooks Online • New Products available in 2010 • Expense Manage
Slide 25: Reckon product brands
Reckon nw _—aggal nQUEUE BILLBACK Information Accountability lickBooks' Quicken’ —-ReckonTools ~—-ReckonElite — ReckonShelco —_ ReckonDocs GS QuickBooks'Sniii
Slide 26: nQueueBillback (USA) - 2009
For personal use only nQueueBillback (USA) – year ended December 2009 2009 Operating revenue $7 3m $7.3m EBITDA $2.4m Maintenance Revenue $4.3m New Revenue $3.0m On 1st July BB USA merged with NQ USA. Reckon owns 67% of JV Rationale: • Merged 3rd & 4th largest players • Best of breed product with de
Slide 27: Future Opportunities
For personal use only Future Opportunities • Continued organic growth – G Grow product suite to provide product from f Micro markets to Enterprise market – Grow product suite for Accounting market into Mid market – Develop product for the SaaS market – Provide deeper product range to Accounting and
Slide 28: Questions
For personal use only Questions Thank you 28