Slide 1: Results Presentation Year ended December 2011
For personal use only Results Presentation Year ended December 2011 To be read in conjunction with the Appendix 4E and the Accounts
Slide 2: For personal use only
eckon Limited Workpaper Management \) Professional Accounting ‘Tax Compliance & Workflow ¢ wy / Ga < Desktop Super 4 ~ S AF enterprise | {Platform QuickBooks) = Quicken ‘4 Financial & | Business V Payroll |, Intelligence/ } J Company |, Imaging " 4 Resource 4 i Planning , Document Management Relatio
Slide 3: Performance Highlights – Year Ended December 2011
For personal use only Performance Highlights – Year Ended December 2011 Revenue up 1% to $91.3m EBITDA (excl relocation)* up 10% to $33.1m NPAT (excl relocation)* up 6% to $18.3m EPS (excl relocation)* up 8% to 13.4cents * Non-IFRS financial information 3
Slide 4: Reckon Group
For personal use only Reckon Group 1st half 2nd half Full year Operating revenue $46.7m $43.5m $90.2m % growth -% -% -% % split 52% 48% EBITDA (excl relocation costs)* $16.6m $16.5m $33.1m % growth* 8% 11% 10% % split* 50% 50% EBITDA margin* 36% 38% 37% * Non-IFRS financial information 4
Slide 5: Reckon Group – Major revenue movements
For personal use only Reckon Group – Major revenue movements Growth $m $m 2010 Operating revenue 90.1 Business Division – direct Australia +6% 1.9 Business Division – Corporate Services +5% 0.8 Professional Division - Australia +5% 1.0 Foreign exchange impact (1.2) Business Division – retail & NZ up
Slide 6: Margin trends
For personal use only Margin trends 2011* 2010 2009 2008 2007 EBITDA 33.1m 30.2m 25.1m 19.0m 16.5m Margin 37% 33% 29% 31% 29% * Excluding relocation costs -Non-IFRS financial information 6
Slide 7: Divisional results (excl FX impacts)
For personal use only Divisional results (excl FX impacts) Growth 2011 2010 Business Division operating revenue -% $55.8m $56.0m Business Division EBITDA -% $20.6m $20.7m EBITDA margin 37% 37% Professional Division operating revenue +5% $25.6m $24.5m Professional Division EBITDA +21% $12.3m $10.1m E
Slide 8: Divisional results (reported)
For personal use only Divisional results (reported) Growth 2011 2010 Business Division operating revenue -% $55.8m $56.1m Business Division EBITDA -1% $20.6m $20.7m Professional Division operating revenue +3% $25.6m $24.7m Professional Division EBITDA +20% $12.3m $10.2m nQueueBillback Div operating
Slide 9: Cash Flow Highlights
For personal use only Cash Flow Highlights 2011 2010 2009 Cash at Dec 2011 / Dec 2010 $4.7m $8.1m Operating cash flow $26.8m $28.2m $18.9m Development cost expenditure $7.4m $7.6m Amortisation of development costs & IP $7.0m $6.4m Investment in Melbourne IT1 $7.3m - Fixed asset acquisitions2 $1.8m $
Slide 10: Revenue Breakdown
For personal use only Revenue Breakdown 100% 90% 80% 54% 70% 60% 71% 70% Recurring 60% Revenue 50% Full Product (incl Corp 40% Services) 30% 36% Service 28% Revenue 11% 20% 23% 10% 18% 10% 12% 7% 0% Business Professional nQBB Group Prior year 52% 71% 66% 59% recurring revenue 10
Slide 11: Group trends
For personal use only Group trends Operating revenue EBITDA 100 35 90 30 80 70 43.6 43.5 25 16.5 42.0 14.9 60 20 $m 50 13.3 28.8 40 27.4 15 9.6 22.1 8.3 30 46.5 46.7 10 6.3 20 ` 43.3 16.6 31.2 15.3 28.0 11.8 10 22.9 5 8.2 9.4 6.7 0 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Half y
Slide 12: Group trends
For personal use only Group trends NPBT EPS 30 16 25 14 12 20 12.3 10 6.6 11.0 6.1 $m 15 9.6 8 5.3 7.6 6 4.3 10 6.6 3.7 5.2 2.9 12.3 4 5 11.4 6.3 6.8 7.5 9.4 2 4.2 4.6 5.8 6.7 3.3 3.8 0 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Half year Full year Half year Full year Note: 2011 e
Slide 13: Business Summary
Business Division For personal use only Summary Revenue $55.8m (flat on prior year) Represents 62% of Group Revenue EBITDA $20.6m (flat on prior year) Product suite Business software suitable for SME’s through to larger enterprises, personal financial software, company secretarial services & practic
Slide 14: Business Performance
Business Division For personal use only Performance Divisional revenue • Strong unit growth with an ongoing emphasis on expanding the subscription customer base Direct QuickBooks and Quicken • Volume increase 10% grew by 7% Online & enterprise volume increases were most significant • Price increase
Slide 15: Business Opportunities
Business Division For personal use only Opportunities • Expectations remain for continued strong and steady growth to be maintained in our core products, driven in particular by: • High growth rates in the enterprise space • High growth rates in online users • Continued growth in traditional desktop
Slide 16: Professional Summary
Professional Division For personal use only Summary Revenue growth of 3% to $25.6m (up by 5% in base currency) Represents 28% of Group Revenue EBITDA growth of 20% to $12.3m (up by 21% in base currency) Product Suite Extensive suite of enterprise level practice software for accounting firms Cost rec
Slide 17: Professional Performance
Professional Division For personal use only Performance Divisional revenue • 29% of revenue derived from new customer sales/additional module rollout, despite difficult market conditions Australia • Australia has had a strong result with the following features: • New revenue (software & consulting)
Slide 18: Professional Opportunities
Professional Division For personal use only Opportunities Australia • Strong pipeline going into 2012 • New products gaining traction – average client only has 3 to 4 modules out of a possible 14 • Lite product expands the addressable market • Company secretarial solution launched New Zealand • New
Slide 19: nQueueBillback Summary
nQueueBillback Division For personal use only Summary Revenue down by 6% to $8.8m (up by 5% in base currency) Represents 9% of Group Revenue EBITDA down by 8% to $3.5m (up 3% in base currency) Reckon holds a 74% shareholding in the USA and 75% in the UK Product suite Cost recovery software, print so
Slide 20: nQueueBillback Performance
nQueueBillback Division For personal use only Performance Divisional revenue • 30% of revenue derived from new customer sales/additional module rollout, despite difficult market conditions (i.e. market share growth) United States of America • Revenue up by 3% in base currency • Revenue impacted by a
Slide 21: nQueueBillback Opportunities
nQueueBillback Division For personal use only Opportunities United States of America • Continued gain in market share • Prospects in the commercial and government sectors are building (including through reseller channel) • Expanded geographies/sales team • Mid sized legal market as yet untapped • Cl
Slide 22: Group Online Strategy
For personal use only Group Online Strategy Personal & Micro • A new online offering has just been launched (CashBook), targeted at Businesses • Micro Businesses • Personal users • Features Simplicity, automatic feed of bank transactions and GovConnect (enables integrated, efficient and accurate lod
Slide 23: Strategic focus
For personal use only Strategic focus Organic growth • Opportunities continue to exist in: remains the key focus • Online products and services across all divisions for the group • Market share growth is expected to continue in all divisions • Market expansion opportunities are significant • Rollout
Slide 24: Questions
For personal use only Questions Thank you 24