Slide 1: Chris Hagglund - Group CFO; Greg Wilkinson - Deputy Chairman
Chris Hagglund - ‘Group CFO Greg Wilkinson - Deputy Chairman
Slide 2: Group Financial Highlights
Group Financial Highlights Group revenue up 16% Quicken revenue up 11% APS revenue Up 26% Net Operating Cash Flow NPBT NPBT NPBT $12.6m UD 26% UD 27% UP 23% Up 44%
Slide 3: 2005 Highlights
2005 Highlights Cash Balance $18.0m Cash Flow from Operations $12.6m Return of Capital ($4.9m) 3.5 cents per share - paid July 05 Share Buyback ($5.6m) 5% of shares at 80c per share - paid Jan 06 Dividend Declared at 2 cents per share - paid March 06
Slide 4: Revenue, EBITDA and NPBT
Revenue 24,7 36.6 423 % Growth 48% 16% EBITDA (pre R&D and Royalties) 10.0 13.0 16.0 Margin 43% 36% 38% EBNDA 5.6 78 10.1 Margin 23% 21% 24% NPBT 5.3 74 9.3 Margin 22% 20% 22% % Growth 38% 26%
Slide 5: Tax Expense and Cash Flow
Tax Expense 2.8 (2.2) Cash Flow (ouifiow) {0.9} Effective Tax Rate (normalised) 29%
Slide 6: EPS (NPBT basic)
EPS (NPBT basic) EPS Growth (NPBT)
Slide 7: % Sales by Product Category
% Sales by Product Category APS - QKN- GROUP 2005 (1st HALF) 100% 90% 80% 70% : O Recuring Product & Manitenace @ Full Product 60% 50% 40% & Service Revenue 30% 20% 10% 0% APS Quicken Grp Reckon
Slide 8: Revenue
Revenue « 53% of revenue recurring « 28% of revenue from new product sales providing strong organic growth « APS revenue 34 % of group * Quicken revenue 66% of group
Slide 9: Foundation for future Growth
Foundation for future Growt ¢ Strong organic growth « Strong balance sheet ¢ Nodebi ¢ = $trong cash holaings * New structure to manage planned growth
Slide 10: New Structure to Manage Growth
New Structure to Manage Growth : Reckon Lid Board Deputy Chairman Greg Wilkinson Group CEO Clive Rabie Reseller Channel Call Centre
Slide 11: Professional Business
Professional Business . APS releases fully integrated CRM software application into Advance Practice Management . Practitioners using APS Advance reached the 25,000 mark more than double in three years . Advance Foundation — launched in October 2004 now used by 72 firms . Solid pipeline of new sales
Slide 12: APS Microsoft Gold Certified
us Gold Certified status by Microsoft. This is t’s highest pariner level i award underlines APS's xpdsition among the first rank of develooment houses. The award ensures that APS will receive the earliest possible access to Microsoft's newest tools and Microsoft development technologies.
Slide 13: APS User Numbers
APS User Numbers 30,000 25,000 20,000 | 30/06/2000 | |m30/06/2001 30/06/2002 1 30/06/2003 1m 31/12/2003 9,000) 7 | an | |m3t22004 : 30/06/2005 Seats 15,000 10,000 0 Country
Slide 14: Australia - APS Client Survey 2005
Australia - APS Client Survey 2005 . 90% of survey participants would be likely or very likely to recommend the Advance product-suite to other accounting firms; . 78% of participants had moved over to APS Advance from Solution 6/Cee ata; ° 86% rate Advance Practice Management as superior or far supe
Slide 15: Growth in Professional Business
srowth in Professional Business Recuring Product & Manitenace Full Product Service Revenue
Slide 16: New Top Australian Firms
OONAARWNS>= 24 New Top 100 Australian Firms Lawler Partners - Newcastle DFK Group (DFK Hirn Newey, Brisbane; Laurence Varnay DFK, Sydney) Ashley & Munro - Queensland BDO Perth - Western Australia Einfeld Symonds BDV Chartered Accountants ~ Sydney UHY Haines Norton ~ Sydney HLB Queensland (formerly M
Slide 17: Strong growth in NZ in 2005
NZ Strong growth in NZ in 2005, with a number of leading NZ firms totalling 545 users switching to APS. in August 2005, Polson Higgs, our competitor's largest customer in New Zealand made the switch to APS Gosling Chapmand - Auckland and Coffey Davidson moved to APS in 2005
Slide 18: Opportunities
Opportunities Professional Business New fax product roll out in 2006 Roll out larger range to APS client Organic growth with strong new customer pipeline New Acquisitions
Slide 19: Acquisition: Desktop Super
Acquisition Desktop Super Price estimated at $1 million *Up front $450,000 * Additional payments based on performance, product quality and road map considerations *Focus on development in 2006 * Contribution to profit in 2007
Slide 20: Desktop Super Acquisition Rationale
Desktop Super Acquisition Rationale °317,000 registered funds *Fast growing market sector (1500+ new funds / month net) «Opportunity to convert users from legacy solutions *Builf on latest Microsoft industry standard technology in line with APS’ development environment *Broadens APS’ product range *
Slide 21: SMB Business
SMB Bus New SMB Customers Schott Ness 32,000 Existing SMB Customers Renewals 37,000 Registered SMB Customers 400,000 SMB Division Grew 11%
Slide 22: % Growth in SMB Business
% Growth in SMB Business 25% 6 20% 15% 10% 5 8% Go Recuring Product & Manitenace Full Product Service Revenue
Slide 23: SMB Product Highlights for 2005
SMB Product Highlights for 2005 * New Product Release ~— Release of EasyStart * already top selling product after successful launch internationally ° successful expansion of Connected Services Online super contribution distribution - Bank statement download and reconciliation — Receive payments on i
Slide 24: SMB Product Awards
“Tha Editors Chel 2005/06, a program that minimises tre effort required to get data in and imformation out.” APC Magazine, June 2005 iwant mawimum functionality, speedy performance and a slick interface then choase Quickbooks Premiar’ in fhe Black magazine, CRA Australia, February 2005 "The GuickBoo
Slide 25: More SMB Product Awards
The QuickBooks range offers something for just about every sige and lype cf small business... theres no denying Nat his is an excelent, ‘wall supporied business tool” Australian PC User, Jub) 2005 More SMB Product Awaras QuickBooks Range was awarded Top Buy by Australian PC User Magazine QuickBooks
Slide 26: Encouraging start to 2006
Encouraging start to 2006 Product sell through in Retail (source: Inform: Financial software market) . Overall accounting software markel grew 1% in 2005 v 2004 . Quicken grew 9% in 2005 on 2004 . Market grew 18% YTD - 2006 on 2005 . Quicken grew by 28% YTD - 2006 on 2005 Quicken continues to gain m
Slide 27: Opportunities SMB Group
Opportunities SMB Group . QuickBooks SQL version to release 2007 - Unlimited simultaneous users ° Product offering integrates with complimentary technologies ° New Foundation * — Super Hub ¢ Continued double digit organic growth ° Enterprise opportunities . Focus on connected services
Slide 28: Wealth Management Business
Wealth Management Business chic t—“—s— New Consumer Product Customers 13,000 Registered Consumer Product 290,000 Customers Market Share 86%
Slide 29: Wealth Management Highlights
Wealth Management Highlights . New Product Release — Personal Plus 2005 ° Successful expansion of Connected Services — Seamless integration with E*Trade — 88% Client Transfer from JDV * Strong focus on expanding offerings in this category
Slide 30: Quicken Personal Product Awards
the verdict If you are keen fo start penny-pinching and want to save an a personal finance software package, Moneydance is a fril-free option with all the features arid functions you'll) a Otherwise, Quicken Personal 2005 is @ solid invesinment for managing all of your financiai concerns frort one c
Slide 31: Wealth Management Opportunities
Wealth Management Opportunities * Organic Growth ¢ More acquisition opportunities ° E*Trade relationship ° Growing demand for personal wealth tools
Slide 32: Thank you