#1For personal use only Reckon R Investor Presentation For the year ended 30 June 2023 To be read in conjunction with Appendix 4D and Accounts#2For personal use only Disclaimer This information contained within this document is in summary form and does not purport to be complete. It should be read in conjunction with Reckon Limited's periodic reporting and other announcements made to the Australian Securities Exchange. Information provided is current at the date of this document or as at the date specified in any slide or page (as applicable). This document may contain forward looking statements (either express or implied), including statements of current intention, opinion and predictions of Reckon's current and future operations, outlook and opportunities, including financial prospects. These statements reflect expectations at the date of the document but are not certain and are susceptible to change. Reckon Limited, its directors and officers make no representation and give no assurance or guarantee as to the accuracy of such forward looking statements or the likelihood of them occurring. To the extent permitted by law, Reckon Limited disclaims any obligation to update such forward looking statements. This document is not intended to be relied upon as advice to investors or potential investors and does not consider the investment objectives, financial situation or the requirements of any investor. RECKON INVESTOR PRESENTATION HY 2023 2#3For 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 and legal firms 9:41 Investment highlights Strong earnings profile for the continuing operations $28m in revenue generated in 1st Half 2023 with EBITDA of $11m and NPAT of $4m Net debt reduced by 90% from $2.8M to $0.3M Annual Dividend of 2.5cents fully franked declared Legal Group subscription revenue growth of 19% Ongoing investment in cloud based products to underpin future business growth Over 109k customers use our cloud SME products and hundreds of thousands of employees get paid in Australia via Reckon products Six of the world's top legal firms use our solutions Pay Runs Pay runs Single Touch Payroll. LATEST SUBMISSION 4 Apr 2019 Accepted Tap to view STP detalls PREVIOUS SUBMISSIONS 29 Mar 2019 Tap to view STP details 22 Mar 2019 Tap to view STP details Accepted 15 Mar 2019 Accepted Tap to view STP dotads ployees Reports Settings RECKON INVESTOR PRESENTATION HY 2023 3#4For personal use only Corporate overview Capital Structure ASX code: Shares on issue: Market capitalisation: Share price high - low post special dividend: Net debt: Major shareholders RKN 113.3m $58m $0.46 to $0.68 Board of directors Clive Rabie NON-EXECUTIVE CHAIRMAN $0.3m Greg Wilkinson FOUNDER & NON-EXECUTIVE DIRECTOR Novatti Group Limited 19.9% Rabie Family 9.0% Microequities Asset Management Pty Ltd 7.6% Greg Wilkinson 7.1% Spheria Asset Management Pty Ltd 5.3% Pinnacle Investment Management Group Ltd 5.3% Phil Hayman NON-EXECUTIVE DIRECTOR Sam Allert CHIEF EXECUTIVE OFFICER RECKON INVESTOR PRESENTATION HY 2023 4#5Our focus is on two large and distinct markets ИК For personal use only NK SMALL BUSINESS Accounting and Payroll solutions for SMEs Total addressable market 3 million small businesses across Australia and New Zealand 米 LEGAL Practice Management and Workflow for law firms Total addressable market 500 of the world's largest firms operate in the USA, alongside 46,000 mid-size firms RECKON INVESTOR PRESENTATION HY 2023 5#6For personal use only Financial Results - Half Year 2023 (Continuing operations only) REVENUE RECURRING REVENUE EBITDA $28 million ↑ +4% over PcP $26 million ↑ +5% over PcP $11 million ↑ +3% over PcP NPAT $4. million ↑ +16% over PcP DEVELOPMENT INVESTMENT $7 million DIVIDEND 2.5 cents per share fully franked RECKON INVESTOR PRESENTATION HY 2023 6#7For personal use only ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Cloud revenue growth of 6% Servicing start ups, gig-economy, small and medium sized businesses with accounting, payroll, and business management tools USERS 120K Small Business Cloud User* Growth Reckon R CLOUD REVENUE Strong cash generating business with EBITDA Margin of 55% and Adjusted EBITDA Margin (after development costs) of 32% for HY23 110K $25m $23.7m 109k 100k $20m 109k Cloud users (growth impacted by discontinuation of free Payroll app in HY23) 90k Continued uptake of Reckon Payroll products across cloud and Mobile 80k $15m 70k Integrated Payments solution with Novatti launched creating additional revenue opportunities 60k HY 23 affected by discontinuation of free Payroll app $10m 50k 40k 30k 20k Cloud revenue growth 6% over HY 22 $5m 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 HY 2023 LTM for Cloud Revenue 58% of available SME Group revenue is cloud based for HY 2023 * Cloud users represent the number of users for all Business Group cloud products including Reckon One, Reckon Mobile and Reckon Accounts Hosted RECKON INVESTOR PRESENTATION HY 2023 7#8For personal use only ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Transition to Reckon One codebase underway Increased focused on the transition to the Reckon One codebase now underway since the completion of Single Touch Payroll 2.0 upgrades Continued development investment into Reckon One and Mobile solutions to support this transition Ongoing product enhancements creating more valuable solutions for SME's and employees Journey to Reckon One expands options for the business and provides potential value creation for Reckon* 8 Reckon Accounts R Reckon Accounts R HOSTED ıl. REPORTING Reckon R TIMESHEETS % BAS/GST/TAX ||| ReckonOne R Reckon Mobile R INVOICING BANK FEEDS EXPENSES PAYROLL *Reckon holds a royalty free licence to use the Intuit source code inherent in Reckon's, Reckon Accounts and Reckon Accounts Hosted products. The licence has some restrictions and is non transferable in certain circumstances. The Intuit source code is not used in any of Reckon's Reckon One cloud and mobile-based products. RECKON INVESTOR PRESENTATION HY 2023 8#9For personal use only 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 US, alongside 46,000 mid- size firms. Highly regarded management team with a successful track record of developing and distributing legal practice management software in US market Footprint in UK and resellers in other parts of the world Over 1000 users on our new platform cloud products BillingQ and DataQ Subscription revenue growth $4.4M $4.3M $4M $4.8M $5.3M 1HY 21 2HY 21 1HY 22 2HY 22 1HY 23 RECKON INVESTOR PRESENTATION HY 2023 9 nozebra Works#10For personal use only PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Upgrade to core product suite and investment in new cloud solutions providing growth opportunity in large US Legal market nozebra Works Core products upgraded to take advantage of increased market interest and opportunity Continued ongoing investment into Cloud based Platform solutions Newer platform solutions can be cross sold into Core client base Additional product integrations planned for Platform solutions creating larger addressable market Core ScanQ and MailQ - scanning PrintQ - printing CostQ - cost tracking 497 clients 6 of the top 10 firms in the world 8 of the top 25 firms in the U.S. 5 of the top 7 firms in Canada Platform BillingQ-billing workflows DataQ-business intelligence RECKON INVESTOR PRESENTATION HY 2023 10#11personal use only Financial Highlights RECKON INVESTOR PRESENTATION HY 2023 11#12For personal use only Group financial performance and cash flow (Continuing operations) HY23 HY22 GROWTH $ M $ M % HY23 HY22 $ M $ M Revenue 28.2 27.0 +4% Operating Cashflow (before development) Continuing operations Discontinued operations 11.1 11.2 5.3 EBITDA 11.0 10.7 +3% NPAT* 3.8 3.3 +16% *Higher amortisation offset by lower effective tax rate in HY 23, due to a higher development spend Development Spend Continuing operations Discontinued operations Dividend Paid Fully franked dividend of 2.5 cents per share to be paid September 2023 Debt Repaid (7.3) (7.5) (3.5) (2.3) (2.7) (1.9) RECKON INVESTOR PRESENTATION HY 2023 12#13For personal use only ACCOUNTING AND PAYROLL SOLUTIONS FOR SMES Business Group Financials A subscription business with consistently strong online growth Financial performance Revenue Revenue Reckon R HY23 HY22 $ M $ M GROWTH CLOUD SUBSCRIPTION 12.0 11.3 6% • Consistently strong cloud revenue growth Subscription revenue is 91% of revenue DESKTOP SUBSCRIPTION 8.5 8.6 -2% SUBSCRIPTION 20.5 19.9 3% . EBITDA margin 55% • Adjusted EBITDA margin 32% (after development costs) OTHER 2.0 2.0 1% TOTAL 22.5 21.9 3% EBITDA 12.3 12.3 Capitalised development costs 4.9 5.3 RECKON INVESTOR PRESENTATION HY 2023 13#14For personal use only PRACTICE MANAGEMENT AND WORKFLOW FOR LEGAL FIRMS Legal Group Financials Growing subscription revenue and a top tier customer base Financial highlights Revenue Revenue SUBSCRIPTION nozebra Works CONSTANT HY23 HY22 $ M $ M GROWTH CURRENCY GROWTH 5.3 4.4 +19% +13% • Strong subscription growth UPFRONT AND SERVICE 0.4 0.7 -35% -39% • Subscription is 92% of revenue 5.7 5.1 +12% +6% EBITDA 0.2 (0.2) • EBITDA Investment in sales and development teams for future growth continues Capitalised development costs 2.4 2.2 RECKON INVESTOR PRESENTATION HY 2023 14#15For personal use only Questions RECKON INVESTOR PRESENTATION HY 2023 15#16Resources Website reckon.com i About us reckon.com/au/about-us ☑ For personal use only W Investors reckon.com/au/investors Media reckon.com/au/media O Reckon Payroll Quick setup Add employee information, process pay runs and email payslips to employees in just a few taps. 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