Reckon : Investor Roadshow Presentation

For personal use only

Investor Presentation

For the year ended 31 December 2021

To be read in conjunction with Appendix 4E and Accounts

For personal use only

Overview

Reckon Limited (ASX: RKN) is a software-as-a-service (SaaS) company providing cloud-based technology solutions to customers including SMEs, accounting firms and law firms

Investment highlights

Three defined operating divisions targeting small businesses, accounting and bookkeeping firms and law firms

Strong normalised earnings profile - $71m in revenue generated in FY2021 with EBITDA of $29m and NPAT of $8m

Ongoing investment in cloud based products to underpin future business growth

Practice management and compliance solutions are used by three of the big four and eight of the top 10 accounting firms in Australia

Five of the world's top legal firms use our solutions

Growth focused - multiple new cloud products launched in 2021 and further launches expected during 2022 with cross selling opportunities across business divisions emerging

RECKON INVESTOR PRESENTATION FY 2021

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Corporate overview

For personal use only

Capital Structure

ASX code:

Shares on issue:

Market capitalisation: (as at $1 per share)

52 week high - low:

Net debt:

Major shareholders

Novatti Group Limited

Rabie Family

Spheria Asset Management Pty Ltd

Microequities Asset Management Pty Ltd

Greg Wilkinson

RKN 113.3m

$113m

$0.745 - $1.195 $15m

19.9%

9.3%

9.1%

7.5%

7.0%

Board of directors

Greg Wilkinson

FOUNDER & NON-EXECUTIVE CHAIRMAN

Phil Hayman

NON-EXECUTIVE DIRECTOR

Clive Rabie

MANAGING DIRECTOR

Sam Allert

CHIEF EXECUTIVE OFFICER

RECKON INVESTOR PRESENTATION FY 2021

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Serving three defined and large sectors

For personal use only

SMALL BUSINESS

Accounting and Payroll solutions for SMEs

Cloud user base of over 114,000 users - increasing 12% YoY.

Partner network of over 6000 partners.

Strong uptake across cloud and mobile products underpins consistent revenue growth.

58% of available revenue is now cloud.

ACCOUNTANTS

Practice Management and Compliance software for accounting firms

Enterprise grade software solutions for accounting firms.

A market leading position through established APS brand.

APS is used by eight of the top 10 Australian accounting firms and by three of the big four.

Cloud product development to compliment the existing product range will underpin growth.

LEGAL

Practice Management and Workflow for law firms

Cost recovery, scanning and print solutions for small to large legal firms.

USA and UK focus - sales team and personnel in country to expedite opportunity.

Building cloud practice management product.

A large market opportunity that still use predominately desktop software.

RECKON INVESTOR PRESENTATION FY 2021

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Financial Results - 2021

For personal use only

REVENUE

ARR

EBITDA

NPAT

$71$65$29$8

million		million		million		million
+1.6% over PcP*		+2.9% over PcP*		+1.4% over PcP*		+7.8% over PcP*

NET DEBT REDUCED TO	FULLY FRANKED DIVIDEND	DEVELOPMENT INVESTMENT
$15	5 cents	$20
million		million

• Non-IFRs:Growth has been normalised and is for continuing businesses at constant currency. (Applies to all results in this presentation refer appendix 1)

RECKON INVESTOR PRESENTATION FY 2021

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