Slide 1: Result Presentation
Result Presentation Reckon Limited Year ended December 2006 Clive Rabie — Group CEO Chris Hagglund - Group CFO Brian Armstrong — APS CEO Gavin Dixon — Quicken CEO
Slide 2: Performance Highlights
Performance Highlights Year ended Dec 06 * Operating Revenue up 9% to $45m « EBITDA up 29% to $13m « APS — Operating Revenue up 8% ~— EBITDA up 35% * Quicken — Operating Revenue up 9% ~ EBITDA up 27% * EPS Growth 22% to 6.2 cents
Slide 3: 3 Year Trend
3 Year Trend Year ended Dec 06 2004 2005 2006 Operating Revenue 35.9m 41.4m 45.0m EBITDA 7.8m 10.1m 13.0m NPBT 74m 9.3m 11.0m EPS 4.0 cents* 5.1 cents 6.2 cents * Normalised for tax
Slide 4: Half year analysis
Half year analysis Year ended Dec 06 2006 1° Half ond Half Operating Revenue 45.0m 23.0m 22.0m Growth 9% 6% 12% EBITDA 13.0m 6.7m 6.3m Growth 29% 20% 39% NPBT 11.0m 5.8m 5.2m Growth 19% 10% 30%
Slide 5: Half year growth
Half year growth Year ended Dec 06 2006 1° Half 20d Half Operating Revenue Growth — 9% 6% 12% Group Operating Revenue Growth — 8% 3% 13% APS Operating Revenue Growth ~ 9% T% 11% QKN EBITDA Growth - Group 29% 20% 39% EBITDA Growth - APS 35% 35% 35% EBITDA Growth - QKN 27% 17% 40%
Slide 6: Margins
Margins Year ended Dec 06 2004 2005 2006 EBITDA (pre R&D and Royalties) 13.0m 16.0m 19.3m Margin 36% 38% 42% EBITDA 7.8m 10.1m 13.0m Margin 21% 24% 29% NPBT 74m 9.3m 11.0m Margin 20% 22% 24% Effective tax rate -% 24% 26%
Slide 7: Cash Flow Highlights
Cash Flow Highlights Year ended Dec 06 2006 19 Half 27° Half Cash Balance at year end $12.7m Cash Flow from Operations $12.2m $4.7m 7.5m Acquired Elite & Desktop $2.1m Development Cost expenditure $3.2m 1.5m 1.7m Fixed Asset Acquisition $1.4m Share Buy Back ( Jan 06) $5.6m 2005 Final Dividend (Mar 0
Slide 8: Strong Management of Costs
Strong Management of Costs Year ended Dec 06 2006 2005 % Change Product and selling costs $2,978 $2,852 4% Employee expenses $16,130 $15,364 5% Marketing expenses $3,920 $3,945 (1%) Royalties $3,985 $3,885 3% Other expenses $4,981 $5,278 (6%) COSTS BEFORE D&A $31,994 $31,321 2% Depreciation & Amorti
Slide 9: Revenue Breakdown
Revenue Breakdown 100% 90% 80% 10% 60% 50% 40% 30% 20% 10% 0% Year ended Dec 2006 APS Quicken Grp Reckon O Recurring Revenue @ Full Product f Service Revenue
Slide 10: Group Structure
Group Structure * Professional « Practice management * Tax management and statutory accounting tools « CRM, document storage and other modules for professional firms « Desktop Super * Elite Tax tools * .net tax product + Shelco suite of products * Company Secretarial * SMB Business Division * QuickB
Slide 11: Acquisitions
Acquisitions * Qkn NZ Business — NZ Distribution Business — Software ~ ASP » » » + Shelco Online Backup ASP Payroll Bankdata - Services » » » » » Companies Trusts Super Deeds Constitutional updates Domain Names — Databroker » » » » ASIC searches State Business names Credit checks Other searches 11
Slide 12: APS Performance
APS Performance Year ended Dec 06 2006 1° Half 2nd Half Revenue Up 8% Up 3% Up 13% New Sales & Service Growth Down 12% Down 19% Down 3% Maintenance Growth Up 25% Up 25% Up 25% 12
Slide 13: Professional Growth Strategies
Professional Growth Strategies * Increased take up of product suite by clients * Consolidated our position as leading supplier to Top 100 accounting firms (15 new top firms added ) * Strong growth in recurring maintenance revenue * 52 new firms moved to APS in Australia * 28 new firms moved to APS i
Slide 14: Professional Growth Strategies
Professional Growth Strategies Position Pricing & Management Packaging Leverage
Slide 15: Professional Growth Strategies
Professional Growth Strategies * Australia ~ High uptake of full product suite by Top 100 clients ~ 80% now using full suite of product ~ 52 new firms including 9 Top 100 firms moved to APS ~ Accelerate rollout of Desktop Super ~ Strong pipeline New Zealand ~ Build on momentum gained in NZ ~ High up
Slide 16: Professional Growth Strategies
Professional Growth Strategies Continuing to build Interwoven Document Management capability (to support high growth and uptake in this area) * Positioning — High value & relationship based * New products ~ CRM & release of new .Net Tax system * Introduced client management program ~ Relationship au
Slide 17: Low Value Lower Expertise
Low Value Lower Expertise Accounts Business " Solutions Advisory 7 Advance Business For - Practice Process Business Management Automation iene Intelligence , Document Workflow Intranet Relationship “ Management & Resource & Portals Management Planning ; , Higher Value Professional Higher Expertise S
Slide 18: Quicken Performance
Quicken Performance Year ended Dec 06 2006 1°! Half 2nd Half Revenue Up 9% Up 7% Up 11% Retail New Sales Growth Down 2% Down 6% up 3% Direct sales Growth Up 15% Up 15% Up 15% 18
Slide 19: Quicken Performance
Quicken Performance ~ Direct sales * Performed strongly — Retail sales ~ Sell Through + Total Market up by 1.5%” * Quicken retail growth 5.7%* * Quicken market share 36%* — *Source: GfK Australia — Sell in * Sales to retail - down 2% - 1° half —- down 6% — 2°4 half —-up 3% — Operating expenses well
Slide 20: Quicken 2006 Business Highlights
Quicken 2006 Business Highlights * Successful launch of 2006/07 products — QuickBooks, Quicken, POS * Relaunch of professional partner program * Quicken Training Centres launched with web-based booking facility * Top Australian Software Awards won in SME, Personal & Payroll categories * Strong growt
Slide 21: Quicken 2007 Strategic Advances
Quicken 2007 Strategic Advances Leverage Intuit R&D Investment of USD 300m p.a. ~ Re-engineered to use SQL Database » Improved scalability » Broader market reach - Significant new product features » Improved user interface . All Quicken and QuickBooks products Vista Ready ~ Extended financial transa
Slide 22: Foundation for future Growth
Foundation for future Growth Organic growth continues Strong balance sheet Substantial cash holdings Established management for group companies 2006 acquisitions bedded down and contributing to profitability and expect growth in coming years New acquisitions to increase product offerings and increas
Slide 23: Thank you
Thank you 23