Slide 1: Notification to the ASX - Half Year Results
Notification to the ASX 22 August 2005 Reckon Limited (RKN) HALF YEAR RESULTS Announcement to the market Please see the attached Highlights, Appendix 4D, half year financial report, and analysts presentation for the period ending 30 June 2005. The information should be read in conjunction with the m
Slide 2: Highlights - Half Year Ending 30 June 2005
Reckon Limited Highlights — Half Year Ending 30 June 2005 Reckon is pleased to announce details of the company’s results to 30 June this year. 6 months to 6 months to % Growth June 2005 June 2004 (000) (000) Revenue $22.2 million $18.8 million Up 18% EBITDA $5.5 million $4.3 million Up 30% NPBT $5.2
Slide 3: Appendix 4D Half year report
Appendix 4D Half year report Appendix 4D Half year report 1. Company details Name of entity RECKON LIMITED ABN or equivalent company Half year ended (‘current period’} Half year ended (‘previous reference period’) [14 003 348 730 | [30 JUNE 2005 | [30 JUNE 2004 ] 2. Results for announcement to the m
Slide 4: Appendix 4D - Control gained or lost over entities
Appendix 4D Half year report 41 Control gained over entities Name of entity (or group of entities) Date control gained NIA Contribution of such entities to the reporting entity's profit/ (loss) from ordinary activities during the period (where material). Profit(loss) from ordinary activities and ext
Slide 5: Appendix 4D - Dividends
Appendix 4D Half year report 5 Dividends Individual dividends per security Date Amount per Franked Amount per dividend is security amount per | security of payable security at foreign 30% tax source dividend N/A interim dividend: Current year : N/A Previous year 6 Dividend Reinvestment Plans The *di
Slide 6: Appendix 4D - Associates and joint ventures
Appendix 4D Half year report Group’s aggregate share of associates’ and joint venture entities’ profits/(losses) (where material): Profit/{loss) from ordinary activities before tax Income tax on ordinary activities Profiti(loss) from ordinary activities after tax Extraordinary items net of tax Net p
Slide 7: Appendix 4D - Foreign entities and audit
Appendix 4D Half year report 8 Foreign entities For foreign entities, detaifs of origin of accounting standards used in compiling the report (e.g. International etc.) N/A 9. If the accounts are subject to audit dispute or qualification, details are described below NIL hen’ — Sign here: on Date: 22 A
Slide 8: Directors' Report
Directors’ Report Your directors present their report for the half-year ended 30 June 2005. Directors The names of the company’s directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated. John Tham
Slide 9: Consolidated Income Statement
Consolidated Income Statement For the half-year ended 30 June 2005 Revenue from continuing operations Product and selling costs Royalties Employee benefits expense Employee related expense Expense of share-based payments Marketing expense Premises and establishment expenses Depreciation and armorlis
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet As at 30 June 2005 ASSETS Current Assets Cash and cash equivalents Receivables Inventories Other Total Current Assets. Non-Current Assets Receivables Other financial assets Property, plant and equipment Deferred tax assets Intangible assets Other Totat Non-Current Assets T
Slide 11: Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity For the half-year ended 30 June 2005 Totat equity at the beginning of the half-year Employee share options Exchange differences on translation of foreign operations Net income recognised directly into equity Profit for the half-year Total recognised income
Slide 12: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement For the half-year ended 30 June 2005 Half-year 30 June 30 June 2005 2004 $000 $000 Cash Flows From Operating Activities Receipts from customers 22,398 17.718 Payments to suppliers and employees ($16,288) (14,363) Interest received 435 301 Net cash inflow from operati
Slide 13: Notes to the Financial Statements
Notes to the Financial Statements For the half-year ended 30 June 2005 Note 1. Summary of significant accounting policies This general purpose financial report for the interim half year reporting period ended 30 June 2005 has been prepared in accordance with Accounting Standard AASB 134 “interim Fin
Slide 14: Financial Instruments and Foreign Currency Translation
{e) Financial Instruments Issued by the Consolidated Entity Transaction Costs on the issue of Equity instruments Transaction costs arising on the issue of equity instruments are recognised directly in equity as a reduction of the proceeds of the equity instruments to which the costs relate. Transact
Slide 15: Goodwill, Intellectual Property and Development Costs
Goodwill is allocated to cash-generating units for the purpose of impairment testing. Each of those cash- generating units represents the Group's investment in each country of operation by each primary reporting segment. intellectual Property Acquired Intellectual Property is amortised on a straight
Slide 16: Leased Assets and Principles of Consolidation
{§) Leased Assets A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incident to ownership of leased assets, and operating leases under which the lessor effectively retains substantially all the risks and ben
Slide 17: Earnings per share and Equity-based compensation
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. {t} Equity - based compensation benefits Equity-hbased compensation benefits are provided to employees via the Employee Option Plan Options granted before 7 November
Slide 18: Note 2: Segment Information
Note 2: Segment Information Primary reporting - business segments inter-segment Quicken APS Other — Eliminations/ Unallocated Consolidated $000 #039;000 $000 $000 $000 Haif-year 2005 Total segment revenue 14,560 7176 435 - 22,171 Segment resutt* 3,727 1,077 435 - 5,239 Haif-year 2004 Total segment reve
Slide 19: Note 5. Explanation of transition to Australian equivalents to IFRSs
Note 5. Explanation of transition to Australian equivalents to IFRSs {a} Reconciliation of total equity as presented under AGAAP to that under AIFRS 31 Dec 30 Jun 1 Jan 2004 2004 2004 $000 FOO $000 Total equity under AGAAP 29,642 28,459 17,607 Adjustments to equity: Write-back of goodwill amortisati
Slide 20: Note 7. Business combinations
Note 7. Business combinations On 29 January 2004 the parent entity acquired from APS Group Limited (New Zealand) 100% of the issued share capital of the following entities comprising the APS group: Advanced Professional Solutions Pty Limited Advanced Professional Solutions Limited (registered in New
Slide 21: Directors' Declaration
Directors’ Declaration In accordance with a resolution of the directors of Reckon Limited, | state that: In the opinion of the directors: {a) the financial statements and notes of the consolidated entity: {i give a true and fair view of the financial position as at 30 June 2005 and the performance f
Slide 22: Auditor's Independence Declaration
-Horwath 22 August 2005 The Board of Directors Reckon Limited Ground Floor, Citywest Office Park 35 Saunders Street Pyrmont NSW 2009 AupiTor’s INDEPENDENCE DECLARATION This declaration is made in connection with our half-year review of the financial report of Reckon Limited for the period ended 30 J
Slide 23: Independent Review Report
INDEPENDENT REVIEW REPORT RECKON LIMITED HORWATH SYDNEY PARTNERSHIP Chartered Accountanis A member of Horwath international 4 Market Street Sydney NSW 2000 GPO Box 1455 Sydney NSW 1041 independent review report to the members of Reckon Limited Scope The financial report and directors’ responsibility
Slide 24: Results 6 months to June
Results 6 month to June ;
Slide 25: Half 2005 Highlights
18 Half 2005 Highlights “f® Revenue $22.2m —up 18% on prior yee ‘fe EBITDA margin (before ~ from 37% to 40%
Slide 26: 1st Half 2005 Highlights
1st Half 2005 Highlights as Revenue growth in both companies = Quicken... 10% | = APS —— .., 40% fy |Increased margins (next slide) f* Cash Balance .... $18.3m _ f® Cash Flow from Operations /® Return of Capital .. 3.5
Slide 27: 6 months June
6 months June 05 2003 | 2004 ‘| Revenue : 427m. | 188m ~ Growth YTD . 48.0 -| EBITDA (before royalties | 5.5m. and development costs) ~ margin NPBT - margin
Slide 28: 6 months June - Tax Effect
«6 months June 05 We account for tax — Minimal cash flow... 2003 Tax Effect: Tax Expense $0 NPAT.
Slide 29: 6 months June - EPS
6 months June 05 2003 | 2004 ‘| EPS EPS (NPBT) 2.00 | EPS Growth . EPS (NPAT) 2.06. EPS Growth .
Slide 30: Quicken Highlights
Quicken Highlights Sustained growth. of new products in mark: Over 90,000 customers dealt regularly wit! “company . Release of QuickBooks 2005/200 hd it fe - f& National road show — winning th f» Over 500 enterprise customer hg hd Release of EasyStart andalrea after very successful laun Successful r
Slide 31: % Growth in Quicken over 2004 by product category
% Growth in Quicken over 2004 - by product categor : Recuring Product & Full Product Senice Revenue Manitenace
Slide 32: APS - Highlights of top firms
APS - Highlights 65 of top 100 firms — “Australia 20 of top 30 firms - NZ ~ 68 firms switched to APS notwithstandin competition and price discounting ~ APS tax users up.160% Client survey — 90% will recommend A Focused roll out of tax module Beta new APS tax form 60 Firms now on foun > SEPP PPD
Slide 33: % Growth in APS over 2004 by product category
% Growth in APS over 2004 - by product categorie Recuring Product & Manitenace Full Product Service Revenue
Slide 34: APS User Numbers
APS User Numbers 30,000 25,000 20,000 30/06/2000], wi 30/06/2001 | 130/08/2002|| 11 30/06/2003|| 31/12/2003] 5,000 iC ' 31/12/2004] m 30/06/2005, Seats 15,000 10,000 0 NZ INTL UK AUS Total
Slide 35: Revenue
~ Revenue _ f& Almost 50% of revenue recurrin 32% of revenue coming fromr sales representing strong o ~ still in the business _ f PPS revenue 33 % O ‘f® Quicken revenue 67!
Slide 36: % Sales by Product Category
% Sales by Product Category 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% APS - QKN - GROUP 2005 (1st HALF) O Recuring Product & Manitenace @ Full Product @ Service Revenue APS Quicken Grp Reckon
Slide 37: Thank you