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Intuit CEO Shareholder Meeting

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Intuit President and CEO, Brad Smith, met with stockholders on Thursday at the company’s Annual Shareholder meeting. During the meeting, Smith offered reflections on Intuit’s FY12 performance.

Intuit President and CEO, Brad Smith, met with stockholders on Thursday at the company’s Annual Shareholder meeting. During the meeting, Smith offered reflections on Intuit’s FY12 performance.

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  • 1. Annual Shareholder Meeting January 2013 Brad Smith President & CEO
  • 2. Forward Looking StatementsThese presentation materials include forward-looking statements.There are a number of factors that could cause our results to differmaterially from our expectations. Please see the section entitled“Cautions About Forward-Looking Statements” in the enclosedAppendix for information regarding forward-looking statements andrelated risks and uncertainties. You can also learn more about theserisks in our Form 10-K for fiscal 2012 and our other SEC filings,which are available on the Investor Relations page of Intuits websiteat www.intuit.com. We assume no obligation to update anyforward-looking statement.Non-GAAP Financial MeasuresThese 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 management’s use ofthese measures and a reconciliation to the most directly comparableGAAP financial measures. Intuit - Confidential
  • 3. Reflections On Our Performance External Market Trends Our Company Strategy Intuit - Confidential
  • 4. Reflections On Our Performance External Market Trends Our Company Strategy Intuit - Confidential
  • 5. My Reflections on FY’12 Performance FY’12 Financial Results Actual Growth Revenue $4,151M 10% Operating $1,404M 10% Income* EPS* $2.97 16%*non-GAAP financial measure Intuit - Confidential
  • 6. My Reflections on FY’12 Performance A solid year … we can do better#1 Grow organic revenue double digits#2 Grow revenue faster than expenses#3 Deploy cash to highest yield opportunities#4 Maintain a strong balance sheet Intuit - Confidential
  • 7. My Reflections on FY’12 Performance Making Progress. . . Needs more work. . .• Talent Dev. & Engagement • Acquire & Delight New Users• Rapid Experimentation • Mobile First/Mobile Only• Mobile Momentum • Product & Design Thinking• Technical Debt Focus • “We & Others”–Network Effects• Portfolio & Expense Mgt. Intuit - Confidential
  • 8. Reflections On Our Performance External Market Trends Our Company Strategy Intuit - Confidential
  • 9. External Market Trends: Short Term Consumer Indicators Small Business Indicators U.S. Unemployment Small Business Confidence Small Business Confidence 9.9% 9.8% 100 7.3% 8.1% 92 95 5.0% 90 86.8 87.5 80 84 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Charge Volume: YoY Growth Small Business Confidence Small Business Revenue Index1.9% 1.2% 4.4% 3.1% 3.6% 3.5% 2.9% 4.1% 2.3%Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY’11 FY’12 FY’13 Savings Rate Small Business Employment Index 8.2% 7.1% 5.6% 4.4% 3.8% 2008 2009 2010 2011 2012 Intuit - Confidential
  • 10. External Market Trends: Short Term Consumer Indicators Small Business Indicators OUTLOOK: Sluggish Small Business Confidence U.S. Unemployment Recovery Small Business Confidence 9.9% 9.8% 100 95 91 7.3% 8.1% 92 5.0% 90 84 80 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Charge Volume: YoY Growth Small Business Confidence Small Business Revenue Index 1.9% 1.00% 3.6% 4.4% 3.5% 4.1% 3.1% 2.9% 3.2% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -1.50% Our products are needed 2008 2009 2010 2011 2012 FY’11 FY’12 thru August OPPORTUNITY: Savings Rate 8.2% most in Small Business Employment Index difficult times 2% -0.18% 1.60% 0.09% 7.1% 5.6% 4.4% 4.0% 0% -3.09% -2.90% -2% -4% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 thru August10 Intuit - Confidential
  • 11. Key takeaway: not immune, but resilient +10% $4,151 $3,772Intuit $3,403Revenue $3,073 $2,978 2% 2% 2% GDP Growth 0% -3% FY08 FY09 FY10 FY11 FY12 Intuit - Confidential
  • 12. External Market Trends: longer term Trends Implications Traditional paper-based, human-produced, brick- Demographic Shifts and-mortar bound services are the past Value Creation Shifts Connected Services Economy Technology Shifts People and businesses increasingly turning to “connected services” in a social, mobile, Geographic Shifts and global world Intuit - Confidential
  • 13. Intuit’s Strategy: how we accelerated results Intuit’s Growth Strategies FY’10-12 Operational PrioritiesInnovation For Growth • Acquire New Users (expand our categories, delightful 1st use, social) Drive Growth In Our Core Businesses • Retain Users (deliver the customer benefit, active use, E2E delight) • Increase Revenue/User (up-sell, cross-sell, beyond-user paid) • Extend The Core (find and solve important new problems) Build Adjacent Businesses & Enter New gGeographies • Advantaged Payments Network (transform SMB remote payments) • Accelerate Global (small business platform, localized by others) SaaS & PaaS (cloud computing, services, 3rd party/social & biz models) • Mobile 1st/Mobile Only (design, capabilities, new mkts contrib., data) Accelerate Our Transition To Connected Services Mobile Computing (platforms/devices, applications, – virtuous circle) • Network Effect Platforms (“we & those we enable” business models) • Data For On” Delivery (high availability, scalability, security) “Always Delight (NED, new/improved user outcomes, stewardship) Intuit - Confidential
  • 14. What has resulted: strong, growing businesses Category Size, Category Growth & Customer Behavior by Market Intuit NP vs. Closest Definitions Position # of prospects/customers (units) Comp. (+/-) +19 +15 • $2.5B Fin. Mgmt • 7% CAGR Manual/ Category 29M SMBs Non-Cons. Competitors Desktop Online • #1 +30 +24 • $4.4B Payroll • 2% CAGR 6M SMBs • #1 Desktop Online • $12B Payments • 5% CAGR +11 +1 29M SMBs • #6 QBMAS Mobile ProTax • $1.9B • 4% CAGR -13 400K Accts • #1 Desktop • $1.8B +17 Cons. Tax • 5% CAGR Non-Category Competitors +1 146M returns • #1 Desktop Online • $9BDigital Bank • 5% CAGR +6 +18250M txn accts • #2 Financial End Institutions Customers Intuit - Confidential
  • 15. What has resulted: improved portfolio & lives Strong Innovation Pipeline Help families put up to $1,000 back in their pockets… $2.4B+ in consumer savings identified to date $100M 10X in FY’12 from products that improvement Improving people get the maximum tax Help Improving 30M 60M didn’t exist 3 years ago from FY10 refund… $58B in tax refunds, 1 out of every 3 tax returns e-filed 60M Customers Connected Services Reshaping Revenue 45M Hosted Lives Lives Help small businesses be more $2.7B profitable… Customers revenues ~25% of $1.5B 64% U.S. GDP, pay 1 in 12 American workers 50% FY08 FY12 64% of revenue from Connected Svcs. Help accountants be more productive… Focusing On Mobile Devices 15M 45M Serve half of all accounting firms # Active Users (M’s) 7M Revenue ($M’s) $70M Hosted Hosted Improve FI profit per customer by 0.1 0 FY08 FY12 FY08 FY12 20%… Internet Banking customers 55 mobile apps averaging 4.3 stars equal to the 5th largest U.S. bank Intuit - Confidential
  • 16. What has resulted: strong return on investment 5 Year Revenue CAGR Stock Price Performance (%) +10%Intuit $4,151 200% $3,403 $3,772Revenue $2,978 $3,073 Intuit 105% GDP 100% 2% 2% 2% Growth 0% 0% -3% NASDAQ 15% FY08 FY09 FY10 FY11 FY12 -100% Aug July 2007 2012 5 Year Operating Income CAGR Return to Shareholders in FY’12 +13% $1,404 $941 $1,130 $1,275 Return on Invested Capital in FY’12 $858 ROIC = 23.9% +3 pts/year over year FY08 FY09 FY10 FY11 FY12 Cash Returned to Shareholders $1.1B Buybacks 5 Year EPS CAGR 102% of Free Cash Flow & Dividends +16% $2.56 $2.97 $2.18 $1.60 $1.85 Implementation of Dividend $0.60/share $0.68/share FY08 FY09 FY10 FY11 FY12 Intuit - Confidential
  • 17. The market is shifting: view of the horizon “Prediction is very difficult, especially about the future”ofYogi Berra The World – 2020 Implications for Intuit• Participation-driven innovation • Increase in user/developer value creation Winning Citizens && Global Products Solutions for the • Expectation of open & frictionless “Free Agents” Network Effect Platforms • Ecosystem and network effects win “Free Agent” Market Intuit - Confidential
  • 18. The market is shifting: view of the horizon “Prediction is very difficult, especially about the future”ofYogi Berra The World – 2020 Implications for Intuit• Participation-driven innovation • Increase in user/developer value creation Winning Citizens && Global Products Solutions for the • Expectation of open & frictionless “Free Agents” Network Effect Platforms • Ecosystem and network effects win “Free Agent” Market• A world without borders • The cloud has no “borders”… empowering all Global Innovative • 1B new middle class in emerging markets • 30+% of workers are “contingent” Growth Company Intuit - Confidential
  • 19. The market is shifting: view of the horizon “Prediction is very difficult, especially about the future”ofYogi Berra The World – 2020 Implications for Intuit• Participation-driven innovation • Increase in user/developer value creation Winning Citizens && Global Products Solutions for the • Expectation of open & frictionless “Free Agents” Network Effect Platforms • Ecosystem and network effects win “Free Agent” Market• A world without borders • The cloud has no “borders”… empowering all Global Innovative • 1B new middle class in emerging markets • 30+% of workers are “contingent” Growth Company• The mobile experience prevails • Connected devices that work seamlessly “Mobile Defined” • More intuitive interfaces – voice & gesture Connected Experiences • Weaving a web of apps – “mini-tasks” Intuit - Confidential
  • 20. The market is shifting: view of the horizon “Prediction is very difficult, especially about the future”ofYogi Berra The World – 2020 Implications for Intuit• Participation-driven innovation • Increase in user/developer value creation Winning Citizens && Global Products Solutions for the • Expectation of open & frictionless “Free Agents” Network Effect Platforms • Ecosystem and network effects win “Free Agent” Market• A world without borders • The cloud has no “borders”… empowering all Global Innovative • 1B new middle class in emerging markets • 30+% of workers are “contingent” Growth Company• The mobile experience prevails • Connected devices that work seamlessly “Mobile Defined” • More intuitive interfaces – voice & gesture Connected Experiences • Weaving a web of apps – “mini-tasks”• Humanizing the data • Life & business through the lens of data Big Data for • Personal informatics/“Moneyball” for SMB the Little Guy • Beyond compliance – stewards of trust Intuit - Confidential
  • 21. The market is shifting: view of the horizon “Prediction is very difficult, especially about the future”ofYogi Berra The World – 2020 Implications for Intuit• Participation-driven innovation • Increase in user/developer value creation Winning Citizens && Global Products Solutions for the • Expectation of open & frictionless “Free Agents” Network Effect Platforms • Ecosystem and network effects win “Free Agent” Market• A world without borders • The cloud has no “borders”… empowering all Global Innovative • 1B new middle class in emerging markets • 30+% of workers are “contingent” Growth Company• The mobile experience prevails • Connected devices that work seamlessly “Mobile Defined” • More intuitive interfaces – voice & gesture Connected Experiences • Weaving a web of apps – “mini-tasks”• Humanizing the data • Life & business through the lens of data Big Data for • Personal informatics/“Moneyball” for SMB the Little Guy • Beyond compliance – stewards of trust Intuit - Confidential
  • 22. Reflections On Our Performance External Market Trends Our Company Strategy Intuit - Confidential
  • 23. Our Mission: why we exist as a company To improve our customers’ financial lives so profoundly… they can’t imagine going back to the old way We serve these end customers “Better Money Outcomes” Financial… making & saving money, Consumers Small Businesses grow & profit Productivity… turning drudgery into time for what matters most …and those who serve them Compliance… without even having to think about it Financial 3rd Party HealthcareAccountants Institutions Contributors Players Confidence… from the wisdom & experience of others Intuit - Confidential
  • 24. Our Values: what we stand for 1 Integrity Without Compromise 2 Delight Customers 3 It’s the People 4 Innovate and Improve 5 Own the Outcome 6 We Care and Give Back Intuit - Confidential
  • 25. Core capabilities: how we differentiateWe strive to create an entrepreneurial environment where small teams innovate to delight customers… Customer Driven Innovation Customer Driven Design for Delight Innovation Love Metrics • Deliver the customer benefit • They actively use • They proactively recommend Intuit - Confidential
  • 26. Core capabilities: how we differentiateWe strive to create an entrepreneurial environment where small teams innovate to delight customers… Customer Driven Innovation Customer Driven Design for Delight Innovation Love Metrics • Deliver the customer benefit • They actively use • They proactively recommend Intuit - Confidential
  • 27. Core capabilities: how we differentiateWe strive to create an entrepreneurial environment where small teams innovate to delight customers… Customer Driven Innovation Customer Driven Design for Delight Innovation Lean Experiment Loop Love Metrics • Deliver the customer benefit • They actively use • They proactively recommend Intuit - Confidential
  • 28. True North: how we measure success Deliver Best We Can Be Results in the Current Period for Employees, Customers, & Shareholders, While Building the Foundation for a Stronger Future Employee Customer ShareholderHigh Performing Organization Lots of Delighted Customers Higher Stock Price• Contribute to a better world • Grow user & contributor bases • Confidence in long term growth • Live Intuit’s Operating Values • New user & contributor growth potential & our ability to deliver on • Leader in Corporate Social Resp. • Existing user & contributor retention commitments • Grow organic revenue double digits,• Talented & engaged workforce • Offerings that delight customers supplemented by acquisitions • We have the talent & skills to • Performance against delivering delight our customers and accelerate • Grow revenue faster than expenses the customer benefit (# or %) • Generate op. income leverage growth • Net Promoter scores >10 pts • Generate strong cash flow in line with • Employee Engagement >85%... better than best alternatives operating income no work group <80% • Deploy cash to high yield oppty… • Solve more customer problems risk adjusted returns of 15+%• Pride in our performance • “Most Admired” recognition • # offerings used per customer • Organic & inorganic oppty’s • “Most Innovative” recognition • # of customers using offerings • Repurchase Intuit securities • “Best Places To Work” recognition launched in last 3 years • Dividend • Maintain a strong, conservative balance sheet Intuit - Confidential
  • 29. Intuit’s Strategy: how we accelerate results Intuit’s Growth StrategiesInnovation For Growth Drive Growth In Our Delivering Awesome Drive Growth In Our Core Businesses Product Experiences Core Businesses Build Adjacent Businesses & Enter New gGeographies Accelerate Our Transition To Connected Services 29 Intuit - Confidential
  • 30. Intuit’s Strategy: how we accelerate results Intuit’s Growth StrategiesInnovation For Growth Drive Growth In Our Delivering Awesome Delivering Awesome Core Businesses Product Experiences Product Experiences Build Adjacent Businesses & Enter New gGeographies Accelerate Our Transition To Connected Services 30 Intuit - Confidential
  • 31. Intuit’s Strategy: how we accelerate results Intuit’s Growth StrategiesInnovation For Growth Delivering Awesome Product Experiences Enabling the Build Adjacent Businesses Build Adjacent Businesses & Enter New gGeographies Contributions of Others- & Enter New Geographies “Network Effect Platforms” Accelerate Our Transition To Connected Services 31 Intuit - Confidential
  • 32. Intuit’s Strategy: how we accelerate results Intuit’s Growth StrategiesInnovation For Growth Delivering Awesome Product Experiences Enabling the Enabling the Build Adjacent Businesses Contributions of Others- & Enter New gGeographies “Network Effect Platforms” Contributions of Others- “Network Effect Platforms” Accelerate Our Transition To Connected Services 32 Intuit - Confidential
  • 33. Intuit’s Strategy: how we accelerate results Intuit’s Growth StrategiesInnovation For Growth Delivering Awesome Product Experiences Enabling the Contributions of Others- g “Network Effect Platforms” Accelerate Our Transition Accelerate Our Transition Using Data To Connected Services To to Create Delight Connected Services 33 Intuit - Confidential
  • 34. Intuit’s Strategy: how we accelerate results Intuit’s Growth StrategiesInnovation For Growth Delivering Awesome Product Experiences Enabling the Contributions of Others- g “Network Effect Platforms” Accelerate Our Transition Using Data Using Data To to Create Delight Connected Services to Create Delight 34 Intuit - Confidential
  • 35. Intuit’s Strategy: how we accelerate results To be a premier innovative growth company… Intuit’s Growth Strategies FY’13-15 Operational PrioritiesAccelerating to Connected Services Delivering Awesome • Amazing 1st Use Experiences: delivering the customer benefit Product Experiences • Reimagining Mobile 1st/ Mobile Only: design and capabilities Enabling the Contributions of Others- g • Solving Multi-Sided Problems Well: creating a virtuous circle “Network Effect Platforms” • Expanding Globally: platforms localized by users and developers Using Data to Create Delight • Enabling Customer Data: better products & break-through benefits Intuit - Confidential
  • 36. Improving Our Customers’ Financial Lives So Profoundly… Small Businesses Accountants Employees FIs Consumers Gov’t Suppliers Developers Delivering awesome product experiences Intuit - Confidential
  • 37. Improving Our Customers’ Financial Lives So Profoundly… Small Businesses Accountants Employees FIs Consumers Gov’t Suppliers Developers Delivering awesome product experiences Enabling the contributions of others Intuit - Confidential
  • 38. Improving Our Customers’ Financial Lives So Profoundly… Small Businesses Accountants Employees FIs Consumers Gov’t Suppliers More than $2.4B Developers in savings identified Delivering awesome product experiences Enabling the contributions of others Using data to create delight Intuit - Confidential
  • 39. Improving Our Customers’ Financial Lives So Profoundly… Small Businesses Accountants Employees FIs Consumers Gov’t Suppliers Developers Delivering awesome product experiences Enabling the contributions of others Using data to create delight Intuit - Confidential
  • 40. Summary Execution in FY12 was solid… but we can do betterThe market is shifting: view of the horizon “Prediction is very difficult, especially about the future”ofYogi Berra The World – 2020 Implications for Intuit Our value proposition resonates…• Participation-driven innovation • Increase in user/developer value creation Winning Citizens && Global Products Solutions for the • Expectation of open & frictionless “Free Agents” Network Effect Platforms “Free Agent” Market • Ecosystem and network effects win• A world without borders • The cloud has no “borders”… empowering all Global Innovative • 1B new middle class in emerging markets Growth Company in the current period & longer term • 30+% of workers are “contingent”• The mobile experience prevails • Connected devices that work seamlessly “Mobile Defined” • More intuitive interfaces – voice & gesture Connected Experiences • Weaving a web of apps – “mini-tasks”• Humanizing the data • Life & business through the lens of data Big Data for • Personal informatics/“Moneyball” for SMB the Little Guy • Beyond compliance – stewards of trust33 We have strong assets & clear strategy to win Intuit - Confidential
  • 41. Appendix
  • 42. TABLE 1: RECONCILIATIONS OF HISTORICAL NON-GAAP FINANCIAL MEASURES TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal (Dollars in millions, except per share amounts) 2012 2011 2010 2009 2008 2007GAAP operating income from continuing operations $1,177 $1,037 $904 $703 $662 $630Amortization of acquired technology 14 12 43 54 51 29Amortization of other acquired intangible assets 39 43 42 41 34 20Charge for historical use of technology licensing rights - - - 13 - -Goodwill and intangible asset impairment charge - 30 - - - -Professional fees for business combinations 5 - 7 - - -Share-based compensation expense 169 153 134 130 111 76Non-GAAP operating income $1,404 $1,275 $1,130 $941 $858 $755GAAP net income $792 $634 $574 $447 $477 $440Amortization of acquired technology 14 12 43 54 51 29Amortization of other acquired intangible assets 39 43 42 41 34 20Charge for historical use of technology licensing rights - - - 13 - -Goodwill and intangible asset impairment charge - 30 - - - -Professional fees for business combinations 5 - 7 - - -Share-based compensation expense 169 153 134 130 111 76Pre-tax (gain) loss on disposal of assets and businesses - - - - (52) (32)Net gains on debt securities and other investments (16) (2) (1) (1) (1) (2)Income tax effects of non-GAAP adjustments (72) (75) (81) (86) (56) (28)Discontinued operations (25) 18 (10) 12 (20) (1)Non-GAAP net income $906 $813 $708 $610 $544 $502GAAP diluted net income per share $2.60 $2.00 $1.77 $1.35 $1.41 $1.24Non-GAAP diluted net income per share $2.97 $2.56 $2.18 $1.85 $1.60 $1.41Shares used in diluted per share amounts 305 317 325 330 339 356Non-GAAP tax rate 34% 34% 35% 33% 36% 36%See "About Non-GAAP Financial Measures" immediately following Table 1 for information on these measures, the items excluded from the most directlycomparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amountsin arriving at each non-GAAP financial measure. Intuit - Confidential
  • 43. About Non-GAAP Financial Measures INTUIT INC. ABOUT NON-GAAP FINANCIAL MEASURESThe accompanying presentation dated January 17, 2013 contains non-GAAP financial measures. Table 1 reconciles the non-GAAP financialmeasures in that presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted AccountingPrinciples (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP netincome (loss) per share, and free cash flow.Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared inaccordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures withthe same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whetherother significant items that arise in the future should be excluded from our non-GAAP financial measures.We exclude the following items from all of our non-GAAP financial measures:• Share-based compensation expense• Amortization of acquired technology• Amortization of other acquired intangible assets• Goodwill and intangible asset impairment charges• Charges for historical use of technology licensing rights• Professional fees for business combinationsWe also exclude the following items from non-GAAP net income (loss) and diluted net income (loss) per share:• Gains and losses on debt securities and other investments• Income tax effects of excluded items and certain discrete tax items• Discontinued operations Intuit - Confidential
  • 44. About Non-GAAP Financial Measures (cont)We believe that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s operating results primarily because they exclude amounts that we do not considerpart of ongoing operating results when planning and forecasting and when assessing the performance of the organization, our individual operating segments, or our senior management. Segmentmanagers are not held accountable for share-based compensation expense, amortization, or the other excluded items and, accordingly, we exclude these amounts from our measures of segmentperformance. We believe that our non-GAAP financial measures also facilitate the comparison by management and investors of results for current periods and guidance for future periods with results forpast periods.The following are descriptions of the items we exclude from our non-GAAP financial measures.Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units and our Employee Stock Purchase Plan. When considering the impact of equityawards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards.Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire an entity, we are required by GAAP to record the fair values of the intangible assets of theentity and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired entities. Amortizationof other acquired intangible assets in operating expenses includes amortization of assets such as customer lists, covenants not to compete and trade names.Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets totheir estimated fair values.Charges for historical use of technology licensing rights. We exclude from our non-GAAP financial measures the portion of technology licensing fees that relates to historical use of that technology.Professional fees for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking,legal and accounting fees.Gains and losses on debt securities and other investments. We exclude from our non-GAAP financial measures gains and losses that we record when we sell or impair available-for-sale debt securitiesand other investments.Income tax effects of excluded items and certain discrete tax items. We exclude from our non-GAAP financial measures the income tax effects of the items described above, as well as income tax effectsrelated to business combinations. In addition, the effects of one-time income tax adjustments recorded in a specific quarter for GAAP purposes are reflected on a forecasted basis in our non-GAAPfinancial measures. This is consistent with how we plan, forecast and evaluate our operating results.Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meetour strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuingoperations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financialmeasures.. Intuit - Confidential
  • 45. Cautions About Forward-Looking StatementsThis presentation includes "forward-looking statements" which are subject to safe harbors created under the U.S. federal securities laws. All statements included inthis presentation that address activities, events or developments that Intuit expects, believes or anticipates will or may occur in the future are forward lookingstatements, including: our expected market, customer and share growth; our opportunities and strategies to grow our business; our expected revenue, operatingincome and earnings per share results and growth; our expectations regarding future dividends and ROIC improvements; our expectations for our product and serviceofferings and cross-sell opportunities; and future market trends. Because these forward-looking statements involve risks and uncertainties, there are importantfactors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, withoutlimitation, the following: inherent difficulty in predicting consumer behavior; difficulties in receiving, processing, or filing customer tax submissions; consumers maynot respond as we expected to our advertising and promotional activities; product introductions and price competition from our competitors can have unpredictablenegative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities or public policyaffecting the preparation and filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully innovate andintroduce new offerings and business models to meet our growth and profitability objectives, and current and future products and services may not adequatelyaddress customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; business interruption orfailure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation andharm our future financial results; as we upgrade and consolidate our customer facing applications and supporting information technology infrastructure, any problemswith these implementations could interfere with our ability to deliver our offerings; any failure to properly use and protect personal customer information and datacould harm our revenue, earnings and reputation; if we are unable to develop, manage and maintain critical third party business relationships, our business may beadversely affected; increased government regulation of our businesses may harm our operating results; if we fail to process transactions effectively or fail toadequately protect against potential fraudulent activities, our revenue and earnings may be harmed; any significant offering quality problems or delays in ourofferings could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization ofour traditional paid franchise; the continuing global economic downturn may continue to impact consumer and small business spending, financial institutions and taxfilings, which could negatively affect our revenue and profitability; our businesses are highly seasonal and the timing of our revenue between quarters is difficult topredict, which may cause significant quarterly fluctuations in our financial results; our financial position may not make repurchasing shares or declaring dividendsadvisable; our inability to adequately protect our intellectual property rights may weaken our competitive position and reduce our revenue and earnings; ouracquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of thetransactions; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operation; and litigationinvolving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact ourbusiness are included in our Form 10-K for fiscal 2012 and in our other SEC filings, available through our website at www.intuit.com. Fiscal 2013 guidance speaksonly as of the date it was publicly issued by Intuit. Other forward-looking statements represent the judgment of the management of Intuit as of the date of thispresentation. We do not undertake any duty to update any forward-looking statement or other information in this presentation. Intuit - Confidential

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