Slide 1: Results Presentation Half Year ended 30 June 2012
For personal use only Limited results presentation Half Year ended 30 June 2012 To be read in conjunction with the Appendix 4D and the Accounts
Slide 2: Product Range - Australia and New Zealand
reckon australia and new zealand For personal use only Product Range ReckonAccounts • Accounting software for Micro Businesses to Mid / Larger Enterprises • Online & Desktop solutions • Point of Sale, Payroll and Personal Financial products ReckonDocs • Company Formations, Trusts and Superannuation
Slide 3: Product Range - International
reckon INTERNATIONAL For personal use only Product Range ReckonNQBB • Cost Recovery Software predominantly for the legal market • Expense Management • Print Solutions ReckonVirtual Cabinet • Document management • Client Portal pg 2
Slide 4: Performance Highlights Half Year Ended June 2012
PERFORMANCE HIGHLIGHTS For personal use only Half Year Ended 30 June 2012 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% REVENUE UP 3% to $48.2m EBITDA UP 8%* to $17.1m NPAT UP 11%* to $9.3m EPS UP 17%* to 7.1 cents DIVIDEND UP 7% to 3.75 cents * 2011 profit adversely impacted by the net of premises relocation
Slide 5: Major Revenue Movements
reckon group For personal use only Major Revenue Movements $ Millions Growth Half Year 2011 Operating Revenue 46.7 Australian Direct SME Accounting Products 0.8 +7% ReckonDocs 1.4 +19% Reckon APS Accounting Channel 0.7 +6% Australian Retail - SME Accounting Products (1.2) -38% Other (0.2) Half Year
Slide 6: Group Trends by Division - Revenue
GROUP TRENDS by division For personal use only Half Year Ended 30 June 2012 Revenue ($ MILLIONS) 0 5 10 15 20 25 Accounts 2012 - 21.3m (including Elite) 2011 - 21.9m 2012 - 13.3m APS 2011 - 12.9m 2012 - 9.1m Docs 2011 - 7.6m 2012 - 4.4 NQBB 2011 - 4.3 Other 2012 - 0.1m Total half year 2012 48.2m Tot
Slide 7: Group Trends by Division - EBITDA
GROUP TRENDS by division For personal use only Half Year Ended 30 June 2012 EBITDA ($ MILLIONS) -6 -4 -2 0 2 4 6 8 10 12 Accounts (Including 2012 - 11.0m Elite & Docs) 2011 - 11.1m 2012 - 6.3m APS 2011 - 6.0m 2012 1.8m NQBB 2011 1.6m 2012 (2.0m) Corporate Costs 2011 (3.0m) Total half year 2012 17.1m
Slide 8: EBITDA Margin
reckon group For personal use only EBITDA margin 2012 2011 Accounts (including Elite & Docs) 36.1% 37.5% APS 47.6% 46.9% nQueueBillback 40.0% 38.3% Group 35.4% 33.8% pg 7
Slide 9: Revenue Breakdown
revenue breakdown For personal use only Accounts Recurring Revenue 76% 9% 15% Full Product Revenue 72% recurring revenue prior year Service Revenue Docs 100% 0% recurring revenue prior year APS 72% 11% 17% 70% recurring revenue prior year nQueue Billback 70% 23% 7% 71% recurring revenue prior year G
Slide 10: Cash Flow Highlights
reckon group For personal use only Cash Flow Highlights - 6 months to June 2012 2012 2011 $ MILLIONS $ MILLIONS Cash at June 2012 / Dec 2011 $2.9 $4.7 Operating cash flow $11.0 $15.0 Development cost expenditure ($4.1) ($3.5) Amortisation of development costs & IP $3.8 $3.5 Investments bought and so
Slide 11: Group Trends: Operating Revenue and EBITDA
GROUP TRENDS For personal use only OPERATING REVENUE EBITDA $ 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 43.6m 2010 15.3m 14.9m
Slide 12: Group Trends: NPBT and EPS
GROUP TRENDS For personal use only NPBT EPS $ MILLIONS CENTS 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 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 6.0 2
Slide 13: Rebranding
rebranding For personal use only The Rebranding Project has been initiated and is made up of 4 major sections: 1. Brand Architecture across the whole Reckon group 2. Look and feel of the products, website etc to make sure that these reflect the core values of the group 3. Technical implementation of
Slide 14: ReckonAccounts
reckon australia and new zealand For personal use only ReckonAccounts • Direct Australian SME Accounting Product revenue grew by 7% Strong contribution from QuickBooks Hosted - up 88% Strong contribution from QuickBooks Enterprise - up 19% Unit growth easily offsets lower retail sell through (retail
Slide 15: ReckonAccounts continued
reckon australia and new zealand For personal use only ReckonAccounts continued... • Release of our Small / Medium Business SaaS product in 2013 • Virtual Cabinet Document Management and Client Portal distribution to both the business and accountant client bases • Release of Reckon Financial Stateme
Slide 16: ReckonDocs and ReckonElite
reckon australia and new zealand For personal use only ReckonDocs • Revenue growth of 19% • Stronger penetration into the accountant channel • Self managed superannuation market has been more buoyant • Investigating the introduction of more content in the near future • Release of the ACR module to A
Slide 17: ReckonAPS
reckon australia and new zealand For personal use only ReckonAPS • Accounting channel revenue growth of 6% • Strong results in Australia and New Zealand • Revenue reduction in legal in Australia Expect to transfer management of this division to the NQBB team in the second half • Continued addition o
Slide 18: ReckonAPS continued
reckon australia and new zealand For personal use only ReckonAPS continued... • APS Private Cloud has been launched 14 clients have signed up, and most will be live within the next month Range of sizes from one person firms upwards Feedback on this service has been very encouraging Makes APS solutio
Slide 19: ReckonNQBB
reckon international For personal use only ReckonNQBB • Continued strong growth in EMEA, with clients added across all regions • The USA has experienced continued growth in client numbers but the average sale per client has been lower than the prior year • Maintained 99% client retention rate • Expe
Slide 20: ReckonVirtual Cabinet
reckon international For personal use only ReckonVirtual Cabinet • Acquired Virtual Cabinet (Linden House) for an initial amount of GBP 6m, with the expected total cost of GBP 14m • Expected acquisition multiple of 5x 2015 EBITDA • Develops and distributes Virtual Cabinet Document Management and Cli
Slide 21: Strategic Focus
strategic focus For personal use only • Organic growth has been and will continue to be the key focus for the group • The inclusion of the Virtual Cabinet product range in our stable opens opportunities in all our business units • Opportunities continue to exist across all divisions in: Online produ
Slide 22: Questions - Thank You
Limited For personal use only questions thank you