Slide 1: Investor Presentation
Investor Presentation For the year ended 31 December 2022 To be read in conjunction with Appendix 4E and Accounts
Slide 2: Overview
Overview Reckon Limited (ASX: RKN) is a software-as-a-service (SaaS) company providing cloud-based technology solutions to customers including SMEs and legal firms. Investment highlights Practice Management Accountant Group sold for $100m effective 1 August 2022. Special dividend of 57 cents per sha
Slide 3: Corporate overview
Corporate overview Capital Structure Board of directors ASX code: RKN Shares on issue: 113.3m Clive Rabie Market capitalisation: $68m NON-EXECUTIVE CHAIRMAN 52 week high – low: Prior to special dividend $0.82 - $1.32 Post special dividend of 57 cents Net debt: $0.57 - $0.66 $3m Greg Wilkinson NON-EX
Slide 4: Financial Results – 2022
Financial Results – 2022 (Continuing operations only) REVENUE ARR EBITDA $ 51 $ 47 $18 million million million +2% over PcP* +5% over PcP* +5% over PcP* NPAT DEVELOPMENT INVESTMENT $ 4 $ 15 million million -1% over PcP* * Non-IFRs: Growth has been normalised and is for continuing businesses at const
Slide 5: Sale of the Accountants Group business for $100m
Sale of the Accountants Group business for $100m The sale of the Accountants Group, of which APS and Reckon Elite solutions where a part, allows us to focus on our core strengths of Accounting and Payroll for small businesses, and Practice Management for Legal firms. Sale of Accountants Group to The
Slide 6: Our focus is on two large and distinct markets
Our focus is on two large and distinct markets SMALL BUSINESS Accounting and Payroll solutions for SMEs Revenue of $40.8m and $21.0m EBITDA in FY22 Total addressable market 3 million small businesses across Australia and New Zealand LEGAL Practice Management and Workflow for Legal firms Revenue of $
Slide 7: Safe cash generating business
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Safe cash generating business Servicing start ups, gig-economy, small and medium Small Business Cloud User Growth sized businesses with accounting, payroll, and USERS business management tools 117k 120K Annual Recurring Revenue (ARR) of $37.5M 110K EBITDA Ma
Slide 8: Customer case study: Warwick Psychological Services
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Customer case study: Warwick Psychological Services Meet clinical psychologist Paul Ward and his office manager, Sarah Colclough! The challenge: With a rapidly scaling practice of 12 employees and a growing patient base, small business owner, Paul Ward, real
Slide 9: Continued focus on employee engagement
Continued focus on employee engagement Employee Engagement Stats Great Place To Work Certified™ 100 % 97 % We’ve created a unique working environment because we believe in inclusivity, diversity, and trust. Living and breathing these values is fundamental to our open-door policy, allowing people to
Slide 10: Growth business in large US and global markets
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Growth business in large US and global markets Servicing Legal firms with workflows through scanning & printing, Practice Management, cost recovery and analytics solutions Enormous market opportunity – 500 of the world’s largest firms operate in the U
Slide 11: Customer case study: Lippes Mathias LLP
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Customer case study: Lippes Mathias LLP Meet Richard Rychlicki, Chief Financial Officer at USA- based legal firm, Lippes Mathias LLP The challenge: With 139 attorneys across 10 offices in North America, Lippes Mathias’ Chief Financial Officer, Richard
Slide 12: Financial Highlights
Financial Highlights RECKON INVESTOR PRESENTATION FY2022 12
Slide 13: Group financial performance and cash flow
Group financial performance and cash flow (Continuing operations) FY22 FY21 GROWTH FY22 FY21 $M $M % $M $M Revenue - normalised 51.2 50.0 +2% Operating Cashflow (before development) Continuing operations 19.9 19.7 Discontinued operations 7.0 11.5 EBITDA - normalised 18.5 17.6 +5% Development Spend C
Slide 14: Business Group Financials
ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Business Group Financials A subscription business with consistently strong online growth Financial performance Revenue FY22 FY21 $M $M GROWTH Revenue • Consistently strong cloud revenue growth CLOUD SUBSCRIPTION 23.0 21.4 7% • Annualised cloud unit growth: 3
Slide 15: Legal Group Financials
PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Legal Group Financials Growing subscription revenue and a top tier customer base Financial highlights Revenue FY22 FY21 $M $M GROWTH Revenue SUBSCRIPTION 9.2 8.8 +6% • Subscription is 89% of revenue UPFRONT AND SERVICE 1.2 1.4 -19% • Solid subscriptio
Slide 16: Questions
Questions RECKON INVESTOR PRESENTATION FY2022 16
Slide 17: Additional Information
APPENDIX ONE Additional Information FY22 FY21 GROWTH $M $M % Revenue Revenue from continuing operations at constant currency (Non-IFRs) 51.2 50.0 2% Discontinued operations 13.5 22.6 Currency impact - continuing operations - (0.5) Reported revenue 64.7 72.1 EBITDA EBITDA from continuing operations a
Slide 18: Accountant Group Financials
APPENDIX TWO PRACTICE MANAGEMENT AND COMPLIANCE SOFTWARE FOR ACCOUNTING FIRMS Accountant Group Financials (Discontinued operations) Stable subscription revenue and an impressive customer base Financial highlights Revenue FY22 FY21 $M $M Revenue (7 MONTHS) (12 MONTHS) • Division sold effective 1 Augu
Slide 19: Resources
Resources Website reckon.com About us reckon.com/au/about-us Investors reckon.com/au/investors Media reckon.com/au/media RECKON INVESTOR PRESENTATION FY2022 19