H&r Block, Inc. · NYSE:HRB
H&r Block — Shareholder Meeting (September 2007)
14 slides from H&r Block's shareholder meeting presentation, Sep 6, 2007
Slide 1: Business Priorities
Business Priorities Focus where we have clear competitive advantage Compete responsibly - build our brands Deliver superior client service Maintain disciplined capital allocation
Slide 2: Agenda
Agenda Mortgage update Seizing growth opportunities at RSM McGladrey Tax Services Continuing client growth momentum Reforming the refund lending industry A look at shareholder returns
Slide 3: Option One Mortgage
Option One Mortgage April agreement to sell Subprime mortgage market challenges Working toward successful resolution
Slide 4: Focus for H&R Block
Focus for H&R Block Tax, Accounting and Related Financial Services bank
Slide 5: RSM McGladrey
RSM McGladrey Leading firm serving middle-market clients in United States Focus on tax, accounting and consulting practices FY08 focus: operating margin expansion
Slide 6: U.S. Tax Market Segmentation
U.S. Tax Market Segmentation 133 million total U.S. tax filers H&R Block retail share H&R Block digital share Hybrid 10% 3% 27% of U.S. Tax Filers Dispersed across retail, CPAs, digital and other service platforms 13% 1% 9% Expertise 32% of U.S. Tax Filers Later-season clients who have more complex
Slide 7: H&R Block Tax Clients
H&R Block Tax Clients FY03 FY04 FY05 FY06 FY07 Retail 16.6 16.1 16 15.7 15.9 Digital 2.9 3.2 3 3.7 4.4 Int'l 2.2 2.3 2.3 2.5 2.6 21.7 21.6 21.4 21.9 22.9 In Millions
Slide 8: Early-Filer Segment
Early-Filer Segment Product innovation and convenience drive segment dynamics Refund products have become commoditized Performance in early- filer segment drives Tax Services success H&R Block retail share H&R Block digital share Early Filer 30% 29% 1% 19% of U.S. Tax Filers Early-filer clients repr
Slide 9: Tax Clients and Impact of Early Season Clients
Tax Clients In Millions 2003 2004 2005 2006 2007 Total Retail 16.6 16.1 16 15.7 15.9 Digital 2.9 3.2 3 3.7 4.4 International 2.2 2.3 2.3 2.5 2.6 21.7 21.6 21.4 21.9 22.9 Competitors introduce high- cost, early- season loans H&R Block doesn't match System administration fees eliminated Introduction o
Slide 10: Refund Lending Leadership - 2008 Tax Season
Refund Lending Leadership - 2008 Tax Season '08 Highlights 36% APR on RAL products for all clients Expansion of Emerald Card features to broaden its appeal Extension of H&R Block industry leadership to independent tax firms
Slide 11: Stock Shareholder Return
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Slide 12: Stock Shareholder Return
EO aR stock Shareholder Return COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* a He elo, he a+ sep 500 SP Oversied Commercial & Profesional Services * g10Dinvestad on 4002 instock or nding reinvest of dens, Floral year ang Api 20 Copyright 92007, Standard & Poor's 2 dsion of The Me Grav-Hil Copan, he.
Slide 13: Summary and Outlook
Summary and Outlook We are focused on tax, accounting and related financial services where we can create competitive advantage Managing through volatile mortgage market while working toward closing the sale of Option One Tax Services is well positioned for a very good season Consumer Financial Servi
Slide 14: Conclusion
Conclusion We have to: Finalize our exit from Option One Focus our resources on ways we can uniquely create value for our clients Ensure we are using shareholder capital as effectively as possible