Slide 1: Results presentation, half year ended 30 June 2014
For personal use only Business software for accountants and accounting software for businesses Results presentation Half year ended 30 June 2014 To be read in conjunction with the Appendix 4D and the Accounts
Slide 2: Reckon group
Reckon group For personal use only • The Business Group Develops and distributes accounting software solutions on either desktop, hosted or cloud platforms. It has over 300,000 active customers, and supports over 6,000 partners. • The Accountant Group Is an industry leader in practice management sof
Slide 3: 2014 highlights
2014 highlights For personal use only • Reckon One launched. • Next generation Hosted product launched. • Strong EBITDA and operating cash flow growth. • Significant investment in cloud capability across the group. • Substantial shift to a subscription model with corresponding subscription revenue g
Slide 4: Performance highlights
Performance highlights For personal use only Half year ended 30 June 2014 0% 2% 4% 6% 8% 10% 12% REVENUE UP 3% to $51.1m EBITDA* UP 11% to $19.3m NPAT* UP 7% to $9.5m EPS* UP 7% to 7.3 cents DIVIDEND UP 6% to 4.25 cents * Growth percentages exclude the impact of the profit on sale of the investment
Slide 5: Revenue growth
Revenue growth For personal use only Half year ended 30 June 2014 2014 Growth 2013 Subscription product revenue 25.9m +12% 23.1m Other recurring revenue 7.8m -2% 8.0m Upfront and service revenue 7.2m -19% 8.8m Content revenue 10.2m +6% 9.6m 51.1m +3% 49.5m pg 4
Slide 6: Group trends by division: Operating Revenue
Group trends by division Half year ended 30 June 2014 For personal use only Operating Revenue ($ MILLIONS) 0 5 10 15 20 25 2014: 19.6m Business Group 2013: 19.3m 2014: 22.8m Accountants Group 2013: 22.3m 2014: 8.7m International Group 2013: 7.8m Total 2014 51.1m Total 2013 49.5m pg 5
Slide 7: Group trends by division: EBITDA
Group trends by division Half year ended 30 June 2014 For personal use only EBITDA ($ MILLIONS) -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 Business 2014: 10.7m Group 2013: 8.5m Accountants 2014: 8.4m Group 2013: 8.4m International 2014 2.5m Group 2013 2.3m 2014 (2.3m) Corporate Costs* 2013 (1.8m) Total 2
Slide 8: Business group results
Business group results Half year ended 30 June 2014 REVENUE 2014 Growth 2013 For personal use only Subscription product revenue 8.2m +12% 7.3m Other recurring revenue 7.8m -2% 8.0m Upfront and service revenue 3.6m -12% 4.0m 19.6m +1% 19.3m EBITDA 10.7m +27% 8.5m Revenue • Subscription: Predominantly
Slide 9: Accountant group results
Accountant group results Half year ended 30 June 2014 For personal use only REVENUE 2014 Growth 2013 Subscription product revenue 11.0m +9% 10.0m Upfront and service revenue 2.0m -31% 3.0m Content revenue 9.8m +6% 9.3m 22.8m +2% 22.3m EBITDA 8.4m - 8.4m Revenue • Aggressive push towards moving the b
Slide 10: International group results
International group results Half year ended 30 June 2014 For personal use only REVENUE 2014 Growth 2013 Subscription product revenue 6.8m +18% 5.7m Upfront and service revenue 1.5m -14% 1.7m Content revenue 0.4m +6% 0.4m 8.7m +10% 7.8m EBITDA 2.5m +9% 2.3m Revenue • Ongoing focus on moving the busin
Slide 11: EBITDA margin
EBITDA margin Half year ended 30 June 2014 For personal use only 2014 2013 Business 54.7% 43.8% Accountants 36.6% 37.6% International 29.2% 29.6% Group 37.7% 35.1% pg 10
Slide 12: Cash flow highlights
Cash flow highlights Half year ended 30 June 2014 For personal use only 2014 2013 Net debt $10.9m Operating cash flow $18.1m 13.4m 2nd Half 2013 Capitalised development cost expenditure (net of grant) ($7.2)m ($6.1)m ($7.0)m Fixed asset acquisitions ($0.3)m ($0.8)m Dividends paid ($6.0)m ($6.1)m Cas
Slide 13: Group Trends Half Year: Operating Revenue and EBITDA
Group Trends Half Year 2nd Half OPERATING REVENUE EBITDA For personal use only $ MILLIONS $ MILLIONS 0 10 20 30 40 50 60 70 80 90 100 0 5 10 15 20 25 30 35 2006 22.9m 22.1m 2006 6.7m 6.3m 2007 28.0m 27.4m 2007 8.2m 8.3m 2008 31.2m 28.8m 2008 9.4m 9.6m 2009 43.3m 42.0m 2009 11.8m 13.3m 2010 46.5m 43.
Slide 14: Group Trends Half Year: NPBT and EPS
Group Trends Half Year 2nd Half NPBT EPS For personal use only 0 2 4 6 8 10 12 14 16 18 20 22 24 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2006 5.8m 5.2m 2006 3.3 2.9 2007 6.7m 6.6m 2007 3.8 3.7 2008 7.5m 7.6m 2008 4.2 4.3 2009 9.4m 9.6m 2009 4.6 5.3 2010 11.4m 11.0m 2010 6.3 6.1 2011 11.0m 11.2m 2011 6.1
Slide 15: Business group
Business group For personal use only Accounting software solutions suitable for small to enterprise sized business offering customer choice of any platform: • Desktop - Reckon Accounts • Hosted - Reckon Account Hosted • Cloud - Reckon One +25,000 online customers (hosted and cloud). pg 14
Slide 16: Business group - opportunities
Business group - opportunities For personal use only • 42% of revenue is subscription • 82% of revenue is recurring • Reckon Accounts Growth of Hosted - following release of next generation product targeted at online users with more complex requirements. Investment in expanded sales team targeting H
Slide 17: Accountant group
Accountant group For personal use only Reckon is an industry leader in practice management software to accounting practices of all sizes, with 4 out of the top 5 accounting firms using the APS suite. Reckon APS offers a truly integrated solution and is now well entrenched as the supplier of choice t
Slide 18: Accountant group - opportunities
Accountant group - opportunities For personal use only • 84% of available revenue is subscription. • The move to a subscription model is showing signs of increasing the addressable market. • Private Cloud, Virtual Cabinet, Sync Direct and Workpaper management modules are significant opportunities. •
Slide 19: International group
International group For personal use only Reckon is an industry leader in solutions to enhance business efficiencies for accountants, lawyers and businesses in general across the globe. • The combination of scan, document management and client portal solutions facilitates a paperless office and offi
Slide 20: International group - opportunities
International group - opportunities For personal use only • 82% of available revenue is subscription. • Virtual Cabinet Document Management Continued customer acquisition into the main markets in the UK. Expansion into Australia and New Zealand via other Reckon companies. • nQueue Cost Recovery and
Slide 21: Strategic focus
Strategic focus For personal use only • All products Build sustainability of business by continuing conversion to a subscription model. Offer customer choice - Desktop, Hosted, Cloud. Investment in online capacity. • Business Group Reckon Accounts: organic growth particularly in the Hosted product.
Slide 22: Thank you - Questions
For personal use only thank you Questions