Intuit - Investor Day Presentation 2012

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<ul><li><p>Forward Looking Statements These presentation materials include forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled Cautions About Forward-Looking Statements in the enclosed Appendix for information regarding forward-looking statements and related risks and uncertainties. You can also learn more about these risks in our Form 10-K for fiscal 2012 and our other SEC filings, which are available on the Investor Relations page of Intuit's website at www.intuit.com. We assume no obligation to update any forward-looking statement. </p><p>Non-GAAP Financial Measures These presentations include certain non-GAAP financial measures. Please see the section entitled About Non-GAAP Financial Measures in the enclosed Appendix for an explanation of managements use of these measures and a reconciliation to the most directly comparable GAAP financial measures. </p></li><li><p>Todays Agenda </p><p>Break </p><p>Wrap-up and Q&amp;A </p><p>CEO Perspective Brad Smith 1 </p><p>Small Business Kiran Patel 2 </p><p>Financial Management Solutions Dan Wernikoff 3 </p><p>Chris Hylen Payments 4 </p><p>Consumer Group Dan Maurer 5 </p><p>Financial Services CeCe Morken 6 </p><p>Financial Perspective Neil Williams 7 </p></li><li><p>Brad Smith </p><p>President &amp; CEO </p></li><li><p>External Market Trends </p><p>Our Company Strategy </p><p>Reflections On Our Performance </p></li><li><p>External Market Trends </p><p>Our Company Strategy </p><p>Reflections On Our Performance </p></li><li><p>Revenue $4,151M 10% </p><p>Operating Income* </p><p>$1,404M 10% </p><p>EPS* $2.97 16% </p><p>FY12 Financial Results </p><p>Actual Growth </p><p>*non-GAAP financial measure </p><p>My Reflections on FY12 Performance </p></li><li><p>A solid year we can do better </p><p>Grow organic revenue double digits #1 </p><p>Grow revenue faster than expenses #2 </p><p>Maintain a strong balance sheet </p><p>#3 Deploy cash to highest yield opportunities </p><p>#4 </p><p>My Reflections on FY12 Performance </p></li><li><p> We &amp; OthersNetwork Effects </p><p> Product &amp; Design Thinking </p><p> Mobile First/Mobile Only </p><p> Acquire &amp; Delight New Users </p><p>Needs more work. . . </p><p> Portfolio &amp; Expense Mgt. </p><p> Technical Debt Focus </p><p> Mobile Momentum </p><p> Rapid Experimentation </p><p>Making Progress. . . </p><p> Talent Dev. &amp; Engagement </p><p>My Reflections on FY12 Performance </p></li><li><p>External Market Trends </p><p>Our Company Strategy </p><p>Reflections On Our Performance </p></li><li><p>External Market Trends: Short Term </p><p>Number of Tax Filers </p><p>Digital Tax Advantage </p><p>143 143 141 </p><p>143 146 </p><p>2008 2009 2010 2011 2012</p><p>U.S. Unemployment </p><p>Consumer Indicators </p><p>Source: Bureau of Labor Statistics, Intuit </p><p>5.0% 7.3% </p><p>9.9% 9.8% 8.1% </p><p>2008 2009 2010 2011 2012</p><p>* Software $ represents TurboTax estimated average revenue per return. </p><p>Source: Intuit estimates, surveys </p><p>Manual </p><p>Franchise/Tax Store </p><p>Pro / CPA </p><p>Software ~5M filers enter </p><p>~3.5M filers exit </p><p>$239 </p><p>$203 </p><p>$46* </p><p>$0 </p><p>51 </p><p>28 </p><p>38 </p><p>-44 </p><p>1% </p><p>-1% </p><p>7% </p><p>-14% </p><p>Price Net </p><p>Promoter 5 yr </p><p>CAGR </p><p>FY08 FY09 FY10 FY11 FY12 </p></li><li><p>U.S. Unemployment </p><p>External Market Trends: Short Term </p><p>1.9% </p><p>3.1% 3.6% 4.4% 3.5% </p><p>2.9% 4.1% </p><p>3.2% </p><p>Help people get the maximum refund </p><p>IFS Mobile Banking </p><p>$58B in tax refunds Charge Volume: YoY Growth </p><p>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 </p><p>FY11 FY12 </p><p>Consumer Indicators </p><p>Same Store Sales Remote Deposit now 11% of deposits </p><p> Avoids overdraft fees averaging $29 </p><p>Source: Intuit </p><p>5.0% 7.3% </p><p>9.9% 9.8% 8.1% </p><p>2008 2009 2010 2011 2012</p></li><li><p>Savings Rate </p><p>External Market Trends: Short Term </p><p>Identified $2.4B in </p><p>savings to date </p><p>Mint ways to save </p><p>IFS Merchant Rewards 1.9% </p><p>3.1% 3.6% 4.4% 3.5% </p><p>2.9% 4.1% </p><p>3.2% </p><p>5.0% 7.3% </p><p>9.9% 9.8% 8.1% </p><p>2008 2009 2010 2011 2012</p><p>U.S. Unemployment </p><p>Charge Volume: YoY Growth </p><p>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 </p><p>FY11 FY12 </p><p>Consumer Indicators </p><p>Same Store Sales </p><p>$2M in savings awarded </p><p>7.1% 8.2% </p><p>5.6% 4.4% 4.3% </p><p>2008 2009 2010 2011 2012</p><p>Source: Bureau of Economic Analysis, Intuit </p></li><li><p>External Market Trends: Short Term </p><p>Help SMBs Save Time &amp; Improve Profit </p><p>Endorsed by most trusted advisors </p><p>70% of QB users </p><p>say it saves them time </p><p>Among our accountants </p><p>Small Business Confidence Small Business Confidence </p><p>Small Business Indicators Small Business Indicators </p><p>Recommend QuickBooks </p><p>+84% </p><p>Source: Intuit, NFIB; Percentage of accountants is based on accountants who would recommend a QuickBooks solution </p><p>80</p><p>90</p><p>100</p><p>2008 2009 2010 2011 2012 </p><p>92 </p><p>84 </p><p>95 92 </p></li><li><p>92 </p><p>Attract &amp; Retain Customers </p><p>Guaranteed Return on Value </p><p>Delivered $3B in incremental </p><p>revenue to customers </p><p>External Market Trends: Short Term </p><p>Small Business Confidence Small Business Confidence </p><p>Small Business Confidence Intuit Small Business Revenue Index </p><p>Small Business Indicators Small Business Indicators </p><p>Source: Intuit </p><p>2008 2009 2010 2011 2012 thru August </p><p>-1.50% </p><p>0.00% </p><p>1.00% </p><p>80</p><p>90</p><p>100</p><p>2008 2009 2010 2011 2012 </p><p>92 </p><p>84 </p><p>95 </p></li><li><p>Pay 1 in 12 America Workers </p><p>Offer Benefits to Employees </p><p>External Market Trends: Short Term </p><p>Small Business Confidence Small Business Confidence </p><p>Small Business Employment Index </p><p>2008 2009 2010 2011 </p><p>Small Business Indicators Small Business Indicators </p><p>Small Business Confidence Intuit Small Business Revenue Index </p><p>ViewMyPaycheck Health Debit Card -3.09% -2.90% </p><p>-0.18% 1.60% 0.09% </p><p>-4%</p><p>-2%</p><p>0%</p><p>2%</p><p>Intuit AssistedPayroll</p><p>Competitor Intuit AssistedPayroll</p><p>Competitor</p><p>Annual Average Cost Net Promoter Score </p><p>Source: Intuit </p><p>2012 thru August </p><p>2008 2009 2010 2011 2012 thru August </p><p>-1.50% </p><p>0.00% </p><p>1.00% </p><p>80</p><p>90</p><p>100</p><p>2008 2009 2010 2011 2012 </p><p>92 </p><p>84 </p><p>95 92 </p></li><li><p>External Market Trends: Short Term Small Business Indicators Small Business Indicators </p><p>Small Business Confidence Small Business Confidence </p><p>Small Business Confidence Small Business Revenue Index </p><p>Small Business Employment Index Savings Rate </p><p>1.9% </p><p>3.1% 3.6% 4.4% 3.5% </p><p>2.9% 4.1% </p><p>3.2% </p><p>5.0% 7.3% </p><p>9.9% 9.8% 8.1% </p><p>2008 2009 2010 2011 2012</p><p>U.S. Unemployment </p><p>Charge Volume: YoY Growth </p><p>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 </p><p>FY11 FY12 </p><p>Consumer Indicators </p><p>2008 2009 2010 2011 </p><p>-3.09% -2.90% </p><p>-0.18% 1.60% 0.09% </p><p>-4%</p><p>-2%</p><p>0%</p><p>2%</p><p>2008 2009 2010 2011 2012 thru August </p><p>-1.50% </p><p>0.00% </p><p>1.00% </p><p>2012 thru August </p><p>7.1% 8.2% </p><p>5.6% 4.4% 4.3% </p><p>2008 2009 2010 2011 2012</p><p>80</p><p>90</p><p>100</p><p>2008 2009 2010 2011 2012 </p><p>92 </p><p>84 </p><p>92 95 </p></li><li><p>2012 thru August </p><p>2008 2009 2010 2011 2012 thru August </p><p>-1.50% </p><p>0.00% </p><p>1.00% </p><p>Small Business Employment Index </p><p>2008 2009 2010 2011 </p><p>-3.09% -2.90% </p><p>-0.18% 1.60% 0.09% </p><p>-4%</p><p>-2%</p><p>0%</p><p>2%</p><p>External Market Trends: Short Term </p><p>18 </p><p>Small Business Indicators Small Business Indicators </p><p>80</p><p>90</p><p>100</p><p>2008 2009 2010 2011 2012 </p><p>92 </p><p>84 </p><p>91 95 </p><p>Small Business Confidence Small Business Confidence </p><p>Small Business Confidence Small Business Revenue Index </p><p>Savings Rate </p><p>7.1% 8.2% </p><p>5.6% 4.4% 4.0% </p><p>2008 2009 2010 2011 2012</p><p>1.9% </p><p>3.1% 3.6% 4.4% 3.5% </p><p>2.9% 4.1% </p><p>3.2% </p><p>5.0% 7.3% </p><p>9.9% 9.8% 8.1% </p><p>2008 2009 2010 2011 2012</p><p>U.S. Unemployment </p><p>Charge Volume: YoY Growth </p><p>Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 </p><p>FY11 FY12 </p><p>Consumer Indicators </p><p>OUTLOOK: Sluggish Recovery </p><p>OPPORTUNITY: Our products are needed most in difficult times </p></li><li><p>Key takeaway: not immune, but resilient </p><p>FY'08 FY'09 FY'10 FY'11 FY'12</p><p>GDP Growth </p><p>$2,978 $3,073 $3,403 </p><p>$3,772 $4,151 </p><p>0% </p><p>-3% </p><p>2% 2% 2% </p><p>+10% </p><p>Intuit Revenue </p></li><li><p>Value Creation Shifts </p><p>Technology Shifts </p><p>Geographic Shifts </p><p>Implications </p><p>Demographic Shifts </p><p>Trends </p><p>Connected Services Economy </p><p>People and businesses increasingly turning to connected services </p><p>in a social, mobile, and global world </p><p>Traditional paper-based, human-produced, brick-</p><p>and-mortar bound services are the past </p><p>External Market Trends: longer term </p></li><li><p>FY10-12 Operational Priorities </p><p>Intuits Strategy: how we accelerated results In</p><p>novati</p><p>on</p><p> Fo</p><p>r G</p><p>ro</p><p>wth</p><p> SaaS &amp; PaaS (cloud computing, services, 3rd party/social contrib., data) </p><p> Mobile Computing (platforms/devices, applications, business models) </p><p> Always On Delivery (high availability, scalability, security) </p><p> Mobile 1st/Mobile Only (design, capabilities, new mkts &amp; biz models) </p><p> Network Effect Platforms (we &amp; those we enable virtuous circle) </p><p> Data For Delight (NED, new/improved user outcomes, stewardship) </p><p>g </p><p>Accelerate Our Transition To Connected Services </p><p>Drive Growth In Our Core Businesses </p><p>Build Adjacent Businesses &amp; Enter New Geographies </p><p>Intuits Growth Strategies </p><p> Acquire New Users (expand our categories, delightful 1st use, social) </p><p> Retain Users (deliver the customer benefit, active use, E2E delight) </p><p> Increase Revenue/User (up-sell, cross-sell, beyond-user paid) </p><p> Extend The Core (find and solve important new problems) </p><p> Advantaged Payments Network (transform SMB remote payments) </p><p> Accelerate Global (small business platform, localized by others) </p></li><li><p>What has resulted: strong, growing businesses </p><p>Customer Behavior by Market # of prospects/customers (units) </p><p>Manual/ Non-Cons. </p><p>Category Competitors </p><p>Non-Category Competitors </p><p>Mobile </p><p>Intuit NP vs. Closest Comp. (+/-) </p><p> Category Size, Growth &amp; Position </p><p>Payroll 6M SMBs </p><p>Fin. Mgmt 29M SMBs </p><p>Payments 29M SMBs </p><p>ProTax 400K Accts </p><p>Cons. Tax 146M returns </p><p>Digital Bank 250M txn accts </p><p>Category Definitions </p><p>Online Desktop </p><p>+15 +19 </p><p>Online </p><p>+24 +30 </p><p>Desktop </p><p>+1 </p><p>Online </p><p>+1 </p><p>+17 </p><p>Desktop </p><p>+6 </p><p>End Customers </p><p>+18 </p><p>Financial Institutions </p><p> $2.5B 7% CAGR #1 </p><p> $4.4B 2% CAGR #1 </p><p> $12B 5% CAGR #6 </p><p> $1.9B 4% CAGR #1 </p><p> $1.8B 5% CAGR #1 </p><p> $9B 5% CAGR #2 </p><p>+11 </p><p>QBMAS </p><p>-13 </p><p>Desktop </p></li><li><p>What has resulted: improved portfolio &amp; lives </p><p>improvement from FY10 </p><p>64% of revenue from Connected Svcs. </p><p>55 mobile apps averaging 4.3 stars </p><p>FY08 FY12 </p><p>50% 64% </p><p>$1.5B </p><p>$2.7B </p><p># Active Users (Ms) Revenue ($Ms) </p><p>FY08 FY12 </p><p>0.1 7M </p><p>FY08 FY12 </p><p>0 </p><p>$70M </p><p>Strong Innovation Pipeline </p><p>Connected Services Reshaping Revenue </p><p>Focusing On Mobile Devices </p><p>Help families put up to $1,000 back in their pockets $2.4B+ in consumer savings identified to date </p><p>Help people get the maximum tax refund $58B in tax refunds, 1 out of every 3 tax returns e-filed </p><p>Help small businesses be more profitable Customers revenues ~25% of U.S. GDP, pay 1 in 12 American workers </p><p>Help accountants be more productive Serve half of all accounting firms </p><p>Improve FI profit per customer by 20% Internet Banking customers equal to the 5th largest U.S. bank </p><p>Improving </p><p>Lives 60M </p><p>Improving </p><p>Lives 50M </p><p>45M Hosted </p><p>35M Hosted </p><p>$100M 10X in FY12 from products that </p><p>didnt exist 3 years ago </p></li><li><p>60</p><p>M C</p><p>usto</p><p>mers </p><p>45</p><p>M H</p><p>oste</p><p>d </p><p>What has resulted: improved portfolio &amp; lives </p><p>improvement from FY10 </p><p>64% of revenue from Connected Svcs. </p><p>55 mobile apps averaging 4.3 stars </p><p>FY08 FY12 </p><p>50% 64% </p><p>$1.5B </p><p>$2.7B </p><p># Active Users (Ms) Revenue ($Ms) </p><p>FY08 FY12 </p><p>0.1 7M </p><p>FY08 FY12 </p><p>0 </p><p>$70M </p><p>Strong Innovation Pipeline </p><p>Connected Services Reshaping Revenue </p><p>Focusing On Mobile Devices </p><p>Help families put up to $1,000 back in their pockets $2.4B+ in consumer savings identified to date </p><p>Help people get the maximum tax refund $58B in tax refunds, 1 out of every 3 tax returns e-filed </p><p>Help small businesses be more profitable Customers revenues ~25% of U.S. GDP, pay 1 in 12 American workers </p><p>Help accountants be more productive Serve half of all accounting firms </p><p>Improve FI profit per customer by 20% Internet Banking customers equal to the 5th largest U.S. bank </p><p>$100M 10X in FY12 from products that </p><p>didnt exist 3 years ago </p></li><li><p>Stock Price Performance (%) </p><p>ROIC = 23.9% +3 pts/year over year </p><p>102% of Free Cash Flow </p><p>$0.60/share $0.68/share </p><p>Return to Shareholders in FY12 </p><p> Cash Returned to Shareholders </p><p>Implementation of Dividend </p><p>$1.1B Buybacks </p><p>&amp; Dividends </p><p>Return on Invested Capital in FY12 </p><p>NASDAQ 15% </p><p> Intuit 105% </p><p>-100%</p><p>0%</p><p>100%</p><p>200%</p><p>July 2012 </p><p>Aug 2007 </p><p>What has resulted: strong return on investment </p><p>GDP Growth </p><p>5 Year Revenue CAGR </p><p>5 Year Operating Income CAGR </p><p>5 Year EPS CAGR </p><p>FY'08 FY'09 FY'10 FY'11 FY'12</p><p>$2,978 $3,073 $3,403 $3,772 $4,151 </p><p>+10% </p><p>0% </p><p>-3% </p><p>2% 2% 2% </p><p>FY'08 FY'09 FY'10 FY'11 FY'12</p><p>+13% </p><p>$858 $941 $1,130 $1,275 </p><p>$1,404 </p><p>FY'08 FY'09 FY'10 FY'11 FY'12</p><p>+16% </p><p>$1.60 $1.85 $2.18 $2.56 </p><p>$2.97 </p><p>Intuit Revenue </p></li><li><p>Prediction is very difficult, especially about the future Yogi Berra The World of 2020 Implications for Intuit </p><p>The market is shifting: view of the horizon </p><p>Solutions for the Free Agent Market </p><p>Global Citizens &amp; Free Agents </p><p> Participation-driven innovation Increase in user/developer value creation </p><p> Expectation of open &amp; frictionless </p><p> Ecosystem and network effects win </p><p>Winning Products &amp; Network Effect Platforms </p><p>Global Innovative Growth Company </p><p> The mobile experience prevails Connected devices that work seamlessly </p><p> More intuitive interfaces voice &amp; gesture </p><p> Weaving a web of apps mini-tasks </p><p>Mobile Defined Connected Experiences </p><p> Humanizing the data Life &amp; business through the lens of data </p><p> Personal informatics/Moneyball for SMB </p><p> Beyond compliance stewards of trust </p><p>Big Data for the Little Guy </p><p> A world without borders The cloud has no borders empowering all </p><p> 1B new middle class in emerging markets </p><p> 30+% of workers are contingent </p></li><li><p>External Market Trends </p><p>Our Company Strategy </p><p>Reflections On Our Performance </p></li><li><p>Our Mission: why we exist as a company </p><p>and those who serve them </p><p>We serve these end customers </p><p>Consumers Small Businesses </p><p>Accountants Financial </p><p>Institutions Healthcare </p><p>Players </p><p>3rd Party Contributors </p><p>Financial making &amp; saving money, grow &amp; profit </p><p>Productivity turning drudgery into time for what matters most </p><p> Compliance without even having to think about it </p><p> Confidence from the wisdom &amp; experience of others </p><p>Better Money Outcomes </p><p>To improve our customers financial lives so profoundly they cant imagine going back to the old way </p></li><li><p>Our Values: what we stand for </p><p>Integrity Without Compromise 1 </p><p>Delight Customers </p><p>Its the People </p><p>Innovate and Improve </p><p>Own the Outcome </p><p>We Care and Give Back </p><p>2 </p><p>3 </p><p>4 </p><p>5 </p><p>6 </p></li><li><p> Deliver the customer benefit They actively use They proactively recommend </p><p>Love Metrics </p><p>Customer Driven Innovation </p><p>Design for Delight Customer Driven Innovation </p><p>We strive to create an entrepreneurial environment where small teams innovate to delight customers </p><p>Core capabilities: how we differentiate </p></li><li><p>High Performing Organization </p><p>Employee </p><p>Lots of Delighted Customers Higher Stock Price </p><p> Contribute to a better world Live Intuits Operating Values Leader in Corporate Social Resp. </p><p> Talented &amp; engaged workforce We have the talent &amp; skills to </p><p>delight our customers and accelerate growth </p><p> Employee Engagement &gt;85%... no work group 10 pts </p><p>better than best alternatives </p><p> Solve more customer problems # offerings used per customer # of customers using offerings </p><p>launched in last 3 years </p><p> Confidence in long term growth potential &amp; our ability to deliver on commitments </p><p> Grow organic revenue double digits, supplemented by acquisitions </p><p> Grow revenue faster than expenses Generate op. income leverage Generate strong cash flow in line with </p><p>operating income </p><p> Deploy cash to high yield oppty risk adjusted returns of 15+% Organic &amp; inorganic opptys Repurchase Intuit securities Dividend </p><p> Maintain a strong, conservative balance sheet </p><p>True North: how we measure success </p><p>Deliver Best We Can Be Results in the Current Period for Employees, Customers, &amp; Shareholders, While Building the Foundation for a Stronger Future </p><p>Customer Shareholder </p></li><li><p>Intuits Strategy: how we accelerate results In</p><p>no</p><p>vati</p><p>on</p><p> Fo</p><p>r G</p><p>ro</p><p>wth</p><p>g </p><p>Accelerate Our Transition To Connected Services </p><p>Build Adjacent Businesses &amp; En...</p></li></ul>