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Intuit investor day 2008

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    Intuit investor day 2008 - Presentation Transcript

    1. Investor Day 2008 1
    2. 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 2008 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. 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 management’s use of these measures and a reconciliation to the most directly comparable GAAP financial measures. 2
    3. Brad Smith President and CEO Investor Day 2008 3
    4. Today’s Agenda 1 CEO Perspective Brad Smith 2 Small Business Rick Jensen & Nora Denzel Break 3 Financial Institutions Sasan Goodarzi 4 Consumer Tax Kiran Patel 5 Financial Perspective Neil Williams Wrap-Up Brad Smith
    5. Strong FY08 Results FY08 Actual % Growth Revenue $3,071M +15% Non-GAAP Operating Income* $856M +12% Non-GAAP Diluted EPS* $1.60 +12% *These are non-GAAP financial measures. GAAP operating income from continuing operations $651M (+2%). GAAP EPS $1.41 (+14%). See attached reconciliation of non-GAAP measures to GAAP. 5 Intuit Confidential
    6. Simple Recipe for Success Be in good businesses with strategies to win Then: • Talented and Engaged Employees • Delivering for Customers So: • We Grow Revenues and Profits 6 Intuit Confidential
    7. Intuit’s Markets and Opportunities Small Health Tax Business Care QuickBooks, Global Payroll & Payments Financial Institutions 7 Intuit Confidential
    8. Our main growth businesses have large market opportunities… Financial Management 27M 100% Large opportunity to Competitors disrupt higher-priced alternatives High Share 80 Intuit Software within category (QuickBooks & Quicken) 60 40 Non-Consumers Large opportunity to (Manual, convert non- Spreadsheet, consumption 20 Online Banking) 0 SMB's …and we win by converting non-consumption and disrupting higher priced alternatives Source: Intuit estimates Intuit Confidential 8
    9. Our main growth businesses have large market opportunities… Tax Prep Methods 139M 100% 80 Professional Prepared 60 Large opportunity to disrupt higher-priced alternatives Tax Store (Tax Stores) 40 High Share Software - Other within category 20 Software - TurboTax Large opportunity to Manual convert non- 0 consumption Returns …and we win by converting non-consumption and disrupting higher priced alternatives Source: IRS data and Intuit estimates Intuit Confidential 9
    10. Our main growth businesses have large market opportunities… Online Banking Households Online Banking Households 125M All Households 100 Large opportunity to Online Households convert non-consumption 75 Online Banking 50 Households 25 (Forecast) 0 00 02 04 06 08 10 …and we win by converting non-consumption and disrupting higher priced alternatives 10 Intuit Confidential
    11. Strong Assets for Future Growth • 7M QB & Quicken small business users An Ecosystem • 17M TurboTax users… 22M returns with Millions of • 8M on-line banking customers… 38M potential End Users • 12M Quicken consumer users • 275K accountants • TurboTax • Quicken • Digital Insight Trusted Brands • QuickBooks • Intuit • 40,000 Accountant Pro Advisors Significant 3rd Party • 5,000 Educational institutions Scale & relationships • 1,800 financial institutions • 75,000 certified IDN developers 11 Intuit Confidential
    12. Consistently Delivering Results EPS ($)** Revenue (CAGR 21%) $3.0B $3.0B $2.00 $2.7B EPS CAGR 16% $2.3B 1.50 $2.0B 2.0 $1.8B Revenue $1.6B 1.00 $1.3B $1.1B $1.0B 1.0 0.50 0.0 0.00 99 00 01 02 03 04 05 06 07 08 Fiscal Years Ending July Fiscal Years Ending July ** EPS shown is non-GAAP; reconciliation to comparable GAAP figures later in this presentation 12 Intuit Confidential
    13. But We Can Do Better… FY08 Actual % Growth Revenue $3,071M +15% Non-GAAP Operating Income* $856M +12% Non-GAAP Diluted EPS* $1.60 +12% We intend to accelerate our organic revenue growth… and expand our operating leverage *These are non-GAAP financial measures. GAAP operating income from continuing operations $638M (+13%). GAAP EPS $1.24 (+7%). See attached reconciliation of non-GAAP measures to GAAP. 13 Intuit Confidential
    14. Intuit’s Business Goals Employee Customer Shareholder High Commitment- Lots of Delighted Higher Stock Price High Performance Org. Customers • Contribute to a better world • Grow our customer bases • Increased confidence in long • Live Intuit’s Operating Values • Subscription: # customers term growth rates & our ability to deliver on commitments • Corporate Social Responsibility • Non-Sub: # current per. buyers • Accelerating double digit organic • Talented & engaged workforce • Offerings are recognized revenue growth... supplemented • We have the talent & skills to leaders at delighting our by acquisitions delight our customers and customers… accelerate growth • Net Promoter scores >10 pts better than nearest alternatives • Grow operating income > than • Employee Engagement >85%... no work group <80% • Reduce controllable attrition organic revenue growth • Mobility…65% of LEC and above positions are filled internally • Deliver innovative offerings to • Grow EPS > operating income • No regrettable losses (1/1) solve imp. customer problems • # customers using offerings • Pride in our performance launched in last 3 years • “Most Admired” recognition • “Most Innovative” recognition • “Best Places To Work” recognition 14 Intuit Confidential
    15. Intuit’s Business Goals Employee Customer Shareholder Higher Stock Price Higher Stock Price • Increased confidence in long term growth rates & our ability to deliver on commitments • Accelerating double digit organic revenue growth… supplemented by acquisitions • Grow operating income > than organic revenue growth • Grow EPS > operating income 15 Intuit Confidential
    16. Intuit’s Focus To be a premier innovative growth company that empowers individuals and businesses to achieve their dreams Financial… making & saving We serve these end customers money, grow & profit Consumers Small Businesses Productivity… turning drudgery into time for what matters most …and those who serve them Compliance… without even having to think about it Financial Health Accountants Care Institutions Players Confidence… from the wisdom & experience of others 16 Intuit Confidential
    17. Four Major Market Trends User Demographic Shifts Value Creation Shifts Emerging companies highlight importance of user contribution and social connectedness Gen Years Level of User Boomers Mompreneurs Contribution Founded 1984 1995 2004 1M users ~6 years 30 months 10 months 50M users N/A ~80 months ~44 months Careerpreneurs Immigrants Technology Shifts Geographic Shifts Software Spend by Delivery Channel Software Spend by Geographic Region Growth Growth Growth Growth US Desktop Software ~5% ~5% ~5% ~5% ~25% ~25% Western Europe ~5% ~5% Software Spend Software Spend ~30% ~30% Asia Pacific ~15% ~15% Software as a Service Other Americas Mobile ~10% ~10% ~20% ~20% ROW ~2000 Today ~2000 Today Source: Intuit estimates Intuit Confidential 17
    18. Accelerating “Connected Services” Intuit’s focus is… To be a premier innovative growth company that empowers individuals and businesses to achieve their dreams By creating and acquiring… Easy-to-use “Connected Services” that create delight by solving “Connected Services” important unsolved customer problems & build durable advantage Software As A Service Software Advantaged Service Connecting People to People 1 2 3 18 Intuit Confidential
    19. Accelerating “Connected Services” Intuit’s focus is… To be a premier innovative growth company that empowers individuals and businesses to achieve their dreams By creating and acquiring… Easy-to-use “Connected Services” that create delight by solving “Connected Services” important unsolved customer problems & build durable advantage Software As A Service Software Advantaged Service Connecting People to People 1 2 3 Where our Software is a Where connecting our Where our vast ecosystem “Connected Service” (SaaS) Service to our Software that delivers revolutionary serves as a platform that makes it clearly superior connects people to people benefits and costs for what matters most
    20. Embracing Major Market Trends Intuit’s focus is… To be a premier innovative growth company that empowers individuals and businesses to achieve their dreams By creating and acquiring… Easy-to-use “Connected Services” that create delight by solving “Connected Services” important unsolved customer problems & build durable advantage And capitalizing on three significant market trends… 1. Social … capitalize on our large and growing customer bases to unleash the collective power of user contributions, user behaviors and user data 2. Mobile … deliver “in the pocket” when that is the preferred solution 3. Global … employ the world’s talents to find & solve important problems around the globe
    21. Intuit’s Game Plan To Win Intuit’s focus is… To be a premier innovative growth company that empowers individuals and businesses to achieve their dreams By creating and acquiring… Easy-to-use “Connected Services” that create delight by solving “Connected Services” important unsolved customer problems & build durable advantage And capitalizing on three significant market trends… 1. Social … capitalize on our large and growing customer bases to unleash the collective power of user contributions, user behaviors and user data 2. Mobile … deliver “in the pocket” when that is the preferred solution 3. Global … employ the world’s talents to find & solve important problems around the globe
    22. We’ve Got A “Running Start” Intuit “Connected Services” Intuit “SaaS” Revenue Growth Revenue Growth ($Millions) ($Millions) CAGR $800 CAGR $3,000 $700 Services $600 50% $500 $2,000 27% $400 $300 Products $1,000 7% $200 $100 $0 $0 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08 “Connected Services” includes SaaS offerings described below “SaaS” includes TurboTax Online, Online Banking, plus elements of Payroll, Payments, QB services, Tax e-filing QuickBooks Online, QuickBase, Homestead, IRES Netsource 22 Intuit Confidential
    23. And We’re Cranking Up Innovation… New idea! 23 Intuit Confidential
    24. And We’re Cranking Up Innovation… Unstructured Time New idea! 24 Intuit Confidential
    25. And We’re Cranking Up Innovation… Brainstorm 25 Intuit Confidential
    26. And We’re Cranking Up Innovation… Idea Jams 26 Intuit Confidential
    27. And We’re Cranking Up Innovation… Intuitlabs.com 27 Intuit Confidential
    28. Our Connected Services… 5 Months Ago Today Live Community
    29. Our Connected Services… 5 Months Ago Today Homestead Digital Insight FinanceWorks Live Community
    30. Our Social Efforts… 5 Months Ago Today Social Savings QuickBase CTG CTG Developer Customer Ratings Customer Ratings Program Auto Categorization Live Community
    31. Our Social Efforts… 5 Months Ago Today Social Savings QuickBase CTG CTG Developer Customer Ratings Customer Ratings Program Auto Categorization Live Community
    32. Our Social Efforts… 5 Months Ago Today Social Savings QuickBase CTG CTG Developer Customer Ratings Customer Ratings Program Auto Categorization Live Community
    33. Our Mobile Efforts… 5 Months Ago Today Mshift Mobile QuickBooks QuickBooks IMS Banking (DI) Online Online Go Payment QuickBooks Online Billing Quicken Quicken Mobile Manager Beam Online Time Tracker
    34. Our Mobile Efforts… 5 Months Ago Today Mshift Mobile QuickBooks QuickBooks IMS Banking (DI) Online Online Go Payment QuickBooks Online Quicken Beam QuickBooks Online IMS Go Payments for iPhone Billing Quicken Quicken Mobile Manager Beam Online Time Tracker 34 Intuit Confidential
    35. Our Global Efforts… Our Goal: To be a premier global provider of connected services to SMBs • Focusing on 10 countries with 60% of world’s 400M SMBs (India + SE Asia) • Developing globally-relevant SMB offerings • Building world-class innovation capabilities in India • Introducing first beta offerings into the Emerging Markets in late FY’09 35 Intuit Confidential
    36. Our Global Efforts… Our Goal: To be a premier global provider of connected services to SMBs • Focusing on 10 countries with 60% of world’s 400M SMBs (India + SE Asia) • Developing globally-relevant SMB offerings • Building world-class innovation capabilities in India • Introducing first beta offerings into the Emerging Markets in late FY’09 Multi-Currency Introduce Small in QuickBooks ‘09 Business Payments in Canada 36 Intuit Confidential
    37. Our Health Care Efforts… • Free to consumer web based tool • Helps consumers understand & manage their medical expenses • Consolidates critical health care financial info in one place • Enables electronic payment to their doctors United, CIGNA, MMOH in Beta early 2009 Launching broadly in balance of 2009 37 Intuit Confidential
    38. Our Health Care Efforts… • Free to consumer web based tool • Helps consumers understand & manage their medical expenses • Consolidates critical health care financial info in one place • Enables electronic payment to their doctors Quicken Health United, CIGNA, MMOH in Beta early 2009 Expense Tracker Launching broadly in balance of 2009 38 Intuit Confidential
    39. Summary • Focused on accelerating organic growth & op leverage • Great businesses with lots of headroom for continued growth… and a pipeline of new ideas in process • A clear game plan to win - delighting customers with easy-to-use connected services that solve important customer problems & help them achieve their dreams • Key areas of focus in the coming year: • Ease of Use … in a connected services world • New users ... “front doors” and “Free”… and monetize • Allocate resources against highest value opportunities 39 Intuit Confidential
    40. Today’s Agenda 1 CEO Perspective Brad Smith 2 Small Business Rick Jensen & Nora Denzel Break 3 Financial Institutions Sasan Goodarzi 4 Consumer Tax Kiran Patel 5 Financial Perspective Neil Williams Wrap-Up Brad Smith
    41. Small Business Rick Jensen SVP & GM – Small Business Group Nora Denzel SVP & GM – Payroll Investor Day 2008 41
    42. Intuit’s Small Business Ecosystem Manage Finances Get Customers Run My Business Small Business Accept Payments Pay Employees 42 Intuit Confidential
    43. FY08: Solid Results In A Tough Year FY08 YOY Change Revenue $1,183M +7% QuickBooks $622M +6% Payroll & Payments $561M +9% Total QB Units ~1.7M +2% QB New Users ~590K -8% QB Payroll New Users ~183K -3% Payments New Users ~102K +12% 43 Intuit Confidential
    44. FY08: Key Drivers Of Performance Things we learned from… Less than compelling offering in FY08… • Focused on Vista compatibility • No growth in recommendations by accountants or influencers Reduced marketing in category • MSFT silent in market • QB marketing flat last 3 years Things we feel good about… • Still added ~ 600K new QB users • Continued momentum in SaaS and Services businesses • Proved “Free” works as a business model 44 Intuit Confidential
    45. Longer Term: Consistently Strong Results Total Small Business Revenue ($Millions) CAGR $1,200M 1,183 19% 1,103 Payroll & Payments 988 1,000 861 42% 800 751 643 600 521 454 394 QuickBooks 400 295 13% 208 200 0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 45 Intuit Confidential
    46. Longer Term: Consistently Strong Results Total Small Business Revenue ($Millions) CAGR 1,250 5.0 19% 1,000 Real GDP Growth 4.0 42% 750 3.0 500 2.0 13% 250 1.0 0 0.0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 46 Intuit Confidential
    47. Longer Term: Consistently Strong Results Total Small Business Revenue ($Millions) CAGR 1,250 105 19% Small Business Optimism 1,000 100 42% 750 95 500 90 13% 250 0 85 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 47 Intuit Confidential
    48. Today’s Discussion Big Market… Well Positioned for Growth How We Win… Simple and Proven Recipe Specific Game Plan for FY09 48 Intuit Confidential
    49. Small Business Landscape 27 Million Key Facts Key Facts US Businesses 0.6M businesses Delegation: departments $6B total SW spend QB 29% firms… 2% spend Mid Market 3.3M businesses Owner begins to delegate Main Street $3B total SW spend 45% QB/Qkn share 23M businesses 25% QB/Qkn share Personal Business $2B total SW spend 42% Manual/Spreadsheet Global Opportunity • ~375M small businesses outside US • 60% of SMBs in SE Asia and India • Many US small businesses doing business abroad Source: Intuit estimates Intuit Confidential 49
    50. With Strong Positions In Each Business Financial Management SW Net Promoter Score 50% 43% 40% 30% 27% 25% 24% 20% 10% 10% -5% 0% QuickBooks Online Quicken PeachTree Accountant Banking -10% Spreadsheet Payroll Net Promoter Score 50% Payments Net Promoter Score 36% 62% 25% 35% 16% 16% -74% -5% 0% QB Assisted QuickBooks Competition QB Merchant IMS Merchant QB Competitors Payroll DIY Payroll Services Services Manual Source: Intuit estimates 50 Intuit Confidential
    51. And Significant Ecosystem Assets • Hundreds of thousands of customers interact online • 250K Accounting • 17 million Professionals employees • 4M Active QB Customers • > 1M Payroll • 240K Payments • $1.8 trillion flows through our • 45K Certified offerings Pro Advisors • 75K Certified Developers Source: Intuit estimates Intuit Confidential 51
    52. Today’s Discussion Big Market… Well Positioned for Growth How We Win… Simple and Proven Recipe Specific Game Plan for FY09 Specific Game Plan for FY’09 52 Intuit Confidential
    53. How We Win: A Simple, Proven Recipe Acquire New Users + Maximize LTV 53 Intuit Confidential
    54. Traditional Model: QuickBooks + Attach Payroll & Payments Manage Finances Get Customers Run My Business Homestead Other QB Online Small Business QB QB Enterprise QB Services Supplies Accept Payments Pay Employees QB SW FY04 FY08 QuickBooks Software Only 25% of Small Business; ~ 50% of QuickBooks segment 54 Intuit Confidential
    55. Expanded Model: New Problems, New Front Doors Acquire and Attract & Save me time, Serve Retain be more Customers Employees productive Get Customers Manage My Run My Employees Business Manage My Finances 55 Intuit Confidential
    56. Today’s Discussion Big Market… Well Positioned for Growth How We Win… Simple and Proven Recipe Specific Game Plan for FY09 Specific Game Plan for FY’09 56 Intuit Confidential
    57. FY’09 Growth Initiatives Acquire New Users + Maximize LTV More QB Users … New Front Doors New services … Payroll & Payments Penetration 1) Compelling QB ’09 Release 1) New Connected Services 2) Increased Demand Generation 2) Continue To Expand Payroll 3) Win with Free 3) Continue To Expand Payments 4) New Front Doors 57 Intuit Confidential
    58. QuickBooks ’09 Highlights Get Productive Get Insights & Info Get Customers Go Global 58 Intuit Confidential
    59. QB09: Get Productive Client Data Review • Reduces accountants time by 30%, or 200 hours per year Online Banking • Transactions entered in QuickBooks are automatically matched • Initiate online transactions from within QuickBooks 59 Intuit Confidential
    60. QB09: Insight & Information Live Community • Connect to millions of QuickBooks users • Beyond QuickBooks… advice from other SMB’s Company Snapshot • The “new” QB Homepage • Instant view of business performance • Instant reminder of key tasks… bills to pay or customers who owe money 60 Intuit Confidential
    61. QB09: Get Customers Free Web Site • Helps solve #1 pain point … using the web to get more customers • With QuickBooks 2009, free for 12 months • Easily create a professional website Sales Management – Enterprise Suite • Focused on the highest return activities • Instant access to 360 view of customer info 61 Intuit Confidential
    62. QB09: Go Global Multi-Currency • Automates accounting for foreign currencies • Access foreign currencies and exchange rates Technology • All new offerings built for the global market • Easily localized for different markets 62 Intuit Confidential
    63. Double Down on Demand Generation Investing 50% more in demand generation, including off-line and online channels 63 Intuit Confidential
    64. Winning With FREE FREE Works 75% had not considered QuickBooks 1 in 5 upgrade to paid immediately Many upgrade later or buy additional services Driving Demand • Part of overall marketing campaign • Front and center on web properties Monetize through In-product Discovery • More services … payroll, payments, web sites… • More up-sell … as they “outgrow” 64 Intuit Confidential
    65. New Front Door Helping Small Businesses Win Online Get Online… Get Found 65 Intuit Confidential
    66. FY’09 Growth Initiatives Acquire New Users + Maximize LTV More QB Users … New Front Doors New services … Payroll & Payments Penetration 1) Compelling QB ’09 Release 1) New Connected Services 2) Increased Demand Generation 2) Continue To Expand Payroll 3) Win with Free 3) Continue To Expand Payments 4) New Front Doors 66 Intuit Confidential
    67. New Connected Services as Attach Retail Door to Payments Go beyond our current narrow retailer definition 67 Intuit Confidential
    68. Payroll Nora Denzel SVP & GM – Payroll Investor Day 2008 68
    69. Big Market: Lots of Growth Potential Addressable Small Businesses 1M QB Payroll 100% = ~9.6M Customers Our Position Today 18% Outsourcers • ~ 50% penetrated in 2.3M addressable QB base 23% Addressable Accountants QB Employers • 11% penetrated in Software 26% total addressable 7.3M Non-QB Small Business market Employers Manual 33% * # of firms with <50 ee’s 69 Intuit Confidential
    70. In a Strong Position to Disrupt Market Annual Fee Category NPS Outsourcers/Accountants $3000 3.9M employers 45 1M employers $300 Software online 47 enter 2.5M employers 1M employers desktop 35 exit $0 Manual 3.2M employers -14 Source: Intuit estimates 70 Intuit Confidential
    71. In a Strong Position to Disrupt Market Annual Fee Category NPS Outsourcers/Accountants $3000 3.9M employers 45 $1000 Intuit Assisted Payroll 62 1M employers $300 Software online 47 enter 2.5M employers 1M employers desktop 35 exit $0 Manual 3.2M employers -14 Source: Intuit estimates 71 Intuit Confidential
    72. FY’09 Payroll Growth Initiatives Acquire New Users + Maximize LTV 1) New QuickBooks Users 1) Re-priced for value 2) New Front Doors (non-QB 2) Increased penetration of users) existing add-on services 3) Investigating beyond Payroll 72 Intuit Confidential
    73. Acquiring New Users • Compelling QB’09… increased demand generation • Deeper integration within Paid and Free versions • Targeting 7.3M non-QuickBooks prospects • Added e-file/-pay & better usability in newest release • Capitalizing on “new front doors” beyond QuickBooks • Intuit.com… Digital Insight Small Business Services… 73 Intuit Confidential
    74. LTV: Value Pricing for FY09 For simple For smaller & new employers Priced 1/3 of payroll & fewer while capturing more outsourcers employees value from larger employers with comparable service Basic Assisted Value Proposition Let your accountant Manage payroll and tax Let Intuit handle handle the payroll taxes filings yourself the payroll taxes New Pricing and Positioning will Drive Growth in ‘09 74 Intuit Confidential
    75. Maximize LTV: Connected Services 75 Intuit Confidential
    76. Maximize LTV: Connected Services Employees sign up for direct deposit 76 Intuit Confidential
    77. Maximize LTV: Connected Services Export data from your paycheck in to 77 Intuit Confidential
    78. Maximize LTV: Connected Services Send your W2 directly to TurboTax 78 Intuit Confidential
    79. Maximize LTV: Employee Mgt Potential Help Make it Easy for Small Businesses to Manage Their Employees From Payroll Pay Pay Taxes/ Employees Liabilities To Employee Management Find & Hire & Pay Pay Taxes/ Manage Retire & Select On Board Employees Liabilities & Keep Terminate •When should I hire? •How should I pay employees? •What benefits should I offer •How do I find, select and hire? •How do I stay out of tax trouble? to remain competitive? 79 Intuit Confidential
    80. Payments Investor Day 2008 80
    81. Payments: What We Do Help businesses accept electronic payments… Credit/Gift Cards PIN Debit E-Check Check/Check21 The way that is right for them… Face to Face Back Office Mobile Web …In ways our competitors can’t Human Touch Integrates with Business Solutions Single Experience, Multiple Solutions Leverage & Create Network Effects 81 Intuit Confidential
    82. Payments market is large and growing Payments Market CAGR (2005-2010F) Payments Market Cash is $225B 3% Check -36% Credit Card 11% Where IMS Debit Card 14% Competes Today Gift Card 16% ACH / Bank Transfer 20% Imaged Check 100% Total 8% Source: Intuit estimates and Nilson report (Dec.2006). 82 Intuit Confidential
    83. Payments market is large and growing Payments Market CAGR (2005-2010F) Payments Market Cash is $225B 3% Check -36% Credit Card 11% Where IMS Debit Card 14% Competes Today Gift Card 16% ACH / Bank Transfer 20% What ECHO Brought Imaged Check 100% Total 8% Source: Intuit estimates and Nilson report (Dec.2006). 83 Intuit Confidential
    84. Lots of Headroom for New Users… Maximize LTV Inside and Outside QuickBooks 84 Intuit Confidential
    85. FY’09 Payments Growth Initiatives Acquire New Users + Maximize LTV 1) New QuickBooks Users 1) New Payments Services 2) Extend into other Intuit 2) Global products 3) Launch new applications 85 Intuit Confidential
    86. Acquiring New Users • Compelling QB’09… increased demand generation • Deeper integration within Paid and Free versions Point of Sale • Focus on Payments as a part of every business • Plan to include as an offering to Digital Insight Small Business Services’ online banking customers in Dec 08 • Billing Manager to launch Oct 08 • Pilot mobile payments offering Spring 2009 IMS Go Payments 86 Intuit Confidential
    87. goPayment: Accept payments anytime, anywhere How goPayment helps small businesses 1 I don’t have to buy or carry additional hardware 2 I can reduce/eliminate data entry I have access to relevant 3 business info at my fingertips Creates powerful value: Mobile platform, IMS payments, & QuickBooks integration 1 Quark verbatim, Maguire prototype testing, SBD Segmentation Qualitative Research and IMS Mobile Survey 2 IMS Mobile Survey 2007, N=300 87 Intuit Confidential
    88. New Payments Services • ACH and check imaging is fastest growing category for payments volume • Help Small Businesses reduce the pain of processing paper checks • Extend offering into Canada in second half of FY09 • Foreign exchange capability in QB09 88 Intuit Confidential
    89. FY’09 Growth Initiatives Acquire New Users + Maximize LTV More QB Users … New Front Doors New services … Payroll & Payments Penetration Compelling QB ’09 Release New Connected Services Increased Demand Generation Continue To Expand Payroll Win with Free Continue To Expand Payments New Front Doors 89 Intuit Confidential
    90. Small Business Outlook FY09 Revenue Guidance: QuickBooks: $670-$695M Payroll & Payments: $639-$662M Projected Growth $1,400M 14-18% 1,200 Payroll & Payments 1,000 800 8-12% 600 QuickBooks 400 200 0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09F 90 Intuit Confidential
    91. Break Investor Day 2008 91
    92. Financial Institutions Sasan Goodarzi SVP/General Manager Investor Day 2008 92
    93. Today’s Discussion A Powerful Growth Formula That Works Changing and Big Market Opportunity Our Plan to Accelerate Growth 93 Intuit Confidential
    94. Sources Of Growth Convert more customers of existing FI’s to online banking… non-consumption + Acquire additional Financial Institutions + Expand services… grow the category's spend Drives Revenue Growth 94 Intuit Confidential
    95. Financial Institutions FY08 Highlights FY08 % Growth Revenue* $298.5M 6% Total IB Users 8.7M 10% Total BP Users 2.5M 16% FI Bookings — 34% * Core Revenue of Consumer and Business Banking grew 8% 95 Intuit Confidential
    96. Today’s Discussion A Powerful Growth Formula That Works Changing and Big Market Opportunity Our Plan to Accelerate Growth 96 Intuit Confidential
    97. Online Banking Industry Front End Core Transaction Provider Processor Processor (Record-Keeper) Consumer Front Financial Door Financial Institution Credit Card Institution Processor Room Back Online ACH Banking Processor Platform ATM/Branch Network Bill Pay Provider Business Online Banking Services 97 Intuit Confidential
    98. Online Banking Industry Front End Core Transaction Provider Processor Processor (Record-Keeper) Consumer Front Financial Door Financial Institution Credit Card Institution Processor Room Back Online ACH Banking Processor Platform ATM/Branch Network Bill Pay Provider Business Online Banking Services 98 Intuit Confidential
    99. Financial Institution Overview # of FIs Preferred Internet Banking Asset Size delivery model Assets 7 $200B “Build in-house” “Have licensed in 50 past… increasingly considering $20B outsourced solution” “Utilize a fully 200 outsourced ASP $3B solution” 16,000 (1) Includes: Banks, Credit Union and Savings institutions Our addressable market is large Source: FDIC; NCUA; FICredit Union and Savings institutions (1) Includes: Banks, interviews Source: FDIC; NCUA; FI interviews 99 Intuit Confidential
    100. Financial Institution Overview # of FIs Preferred Internet Banking Asset Size delivery model Assets 7 $200B “Build in-house” “Have licensed in 50 past… increasingly considering $20B outsourced solution” “Utilize a fully 200 outsourced ASP $3B solution” 16,000 (1) Includes: Banks, Credit Union and Savings institutions Our addressable market is large Source: FDIC; NCUA; FICredit Union and Savings institutions (1) Includes: Banks, interviews Source: FDIC; NCUA; FI interviews 100 Intuit Confidential
    101. Online Banking Growth • 48% of 111M US households & 62% of 27M US businesses use OLB • Future OLB growth from expansion of services Percent of US Households / Small Businesses 80 Small Business Online Banking Penetration Consumer Online Banking 60 Penetration Consumer Personal 40 Consumer Finance Mgmt Online Bill Pay Penetration Penetration 20 Small Business Finance Mgmt Penetration 0 2002 2004 2006 2007 2008F 2010F Base: US online households (111M in 2007); US business (26.5M in 2007) Base: USForrester, March 2007; The Online Banking Report, 2008; Aite Group’s “Mistakes Banks Make when serving SBs,” May 2008; Internal Analysis based on Source: online households date from Intuit OLB study 2007 Source: Forrester US Online Banking Forecast, 03/07 101 Intuit Confidential
    102. Macro Trends & Market Dynamics Have Sharpened Our Focus Challenging macro conditions • Consumer’s net worth down, lower confidence • Commercial & small business revenues lower YOY FIs under pressure & looking for help • Under lots of pressure: Some not making it… no FI more than 2% of our revenue • FIs looking for new ways to generate fee income Market dynamics creating opportunities • Money center banks raising the bar… resulting in other FIs looking for ways to compete • Coopetition with core processors… possibility of expanding partnerships 102 Intuit Confidential
    103. Today’s Discussion A Powerful Growth Formula That Works Changing and Big Market Opportunity Our Plan to Accelerate Growth 103 Intuit Confidential
    104. Mission And Strategy Mission Arm financial institution clients with the capabilities they need to compete and win against anyone Market Focus U.S.-based small and mid-sized financial institutions Fully outsourced, hosted service delivery Our Strategy Help retain, grow, and acquire profitable customers for our financial institutions by enabling end-users to easily manage their personal and business finances…helping them exceed their financial goals 104 Intuit Confidential
    105. Priorities To Accelerate Growth • Dramatically increase adoption & active usage • Deliver financial management offerings better than any alternatives • Deliver a great total customer experience… for FIs & users Aimed at Sources of Growth 1 Convert more customers of existing FI’s to online banking… non-consumption 2 Acquire additional Financial Institutions 3 Expand services… grow the category's spend 105 Intuit Confidential
    106. Opportunity #1: Convert More Customers Of Existing FI’s To Online Banking 40 38m 35 Total existing FI customers 30 19.2M Users Millions Without 25 Current Penetration: Checking Accounts 23% IB 20 13% BP 15 18.8M 10 With With Checking 5 8.7M IB Users Checking Accounts Account 2.5M BP Users 0 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 106 Intuit Confidential
    107. Opportunity #1: Convert More Customers Of Existing FI’s To Online Banking 40 38m Assuming Total existing 35 Performance FI customers Matches DI’s 30 19.2M Leading FIs Users Millions Without Current Penetration: Checking 25 Accounts 60% IB 23% IB 55% BP 20 13% BP 22.8M IB 15 Users 18.8M 10 With With Checking 5 8.7M IB Users Checking Accounts 10.3M BP Account Users 2.5M BP Users 0 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 If overall penetration reached the level of DI’s leading FI’s, revenue opportunity ~ $700M 107 Intuit Confidential
    108. New Learning: Only 2.5% Of All Users Complete Bill Pay Registration Number of (potential) users 529 Percent of Steps in process users retained 1) Enter IB Registration 100% 2) Fill out IB Registration 70% 3) Complete IB Registration 68% 4) FI approves IB registration 56% 5) User signs into IB 25% 6) User accepts BP prompts @ 1st log-in 24% 7) User entered Bill Pay queue and FI approves Bill Pay registration 13 2.5%1 1) The median time to complete the process from entering IB registration to completing Bill Pay registration was 5.5 days 108 Intuit Confidential
    109. Root Cause: A Complex Process With >16 Steps To Go Through START IB Registration IB Landing page BP Registration Home n prompt IB landing 1 Page 10 11 page screens BP sign up 2 Welcome 12 page to sign up Forced ID 9 change Long sign Long sign 13 up form 3 up form MFA set- Confirm 8 up 14 registration Confirm 4 info entry Terms & Home 15 Conditions 7 Page Terms & 5 conditions Sign up 16 complete Sign up 6 complete Wait for FI approval IB 1st login Wait for FI approval FINISH …and we still haven’t entered Bill Payment for the 1st time… 109 Intuit Confidential
    110. “Real Time” Site Reviews Proven To Improve Results Made it easier… sign up, help, registration language, and # of steps in the process Before site review After site review Number Number Increase Steps in process of users of users in users 1) Enter IB Registration 529 735 39% 7) User entered BP queue and FI 13 68 523% approves BP registration Scaling Usability Improvements Across Base 110 Intuit Confidential
    111. Opportunity #2: Acquire More FI’s # of FIs Assets 7 $200B 50 $20B DI 200 13% 13% Penetration $3B 16,000 8% 8% Opportunity For Deeper Penetration 1. Increasing sales headcount with focus on “up-market” 2. Potential expansion of core processor relationships 3. Expanding our services 111 Intuit Confidential
    112. Opportunity #3: Expand Services Expansion of services expected to drive faster growth This is where Personal and Small Business FinanceWorks are focused 80 Percent of US Households / Small Businesses Small Business 60 Online Banking Penetration PFW and SBFW Focus Small Business Consumer Finance Mgmt 40 Online Banking Penetration Penetration Consumer Personal Finance Mgmt Penetration 20 Consumer Online Bill Pay Penetration 0 2002 2004 2006 2007 2008F 2010F Base: US online households (111M in 2007); US business (26.5M in 2007) Source: Forrester, March 2007; The Online Banking Report, 2008; Aite Group’s “Mistakes Banks Make when serving SBs,” May 2008; Internal Analysis based on date from Intuit OLB study 2007 Source: Forrester US Online Banking Forecast, 03/07 Intuit Confidential 112
    113. Money Center Banks Continue To Raise The Bar… Making It Strategic “Wells Fargo Introduces “My Spending Report” – Industry’s First All-In-One Personal Spending Snapshot Via the Internet” “Chase Mobile Gives Consumers Real-time Account Info” “Bank of America launches My Portfolio” Financial Management Solutions no longer a “nice to have” Small and medium institutions need our help to compete Source: Company press releases 113 Intuit Confidential
    114. Opportunity To Improve Online Banking Financial Responsibility Everyday Money Management Avoid ID theft & fraud Ensure accuracy of charges charges Manage bills and suppliers The Consumer Financial Security For The Future 114 Intuit Confidential
    115. Opportunity To Improve Online Banking Financial Responsibility Everyday Money Management Avoid ID theft & fraud Ensure accuracy of charges charges Manage bills and suppliers Ensure good credit The Consumer Know how much I can spend Avoid late fees & overdrafts Know & meet obligations / bills Know where my money went Track tax deductions Financial Security Stay out of debt For The Future Pay off debt Able to save for life’s goals Keep my valuables safe & Grow my portfolio protected 115 Intuit Confidential
    116. Manage all your bills in one place
    117. Manage all your accounts from one place
    118. Know how much money you really have to spend
    119. See where you are spending your money
    120. Personal FinanceWorks Addresses The Gaps Financial Responsibility Everyday Money Management Avoid ID theft & fraud Ensure accuracy of charges charges Manage bills and suppliers Ensure good credit The Consumer Know how much I can spend Avoid late fees & overdrafts Know & meet obligations / bills Know where my money went Track tax deductions Financial Security Stay out of debt For The Future Pay off debt Able to save for life’s goals Keep my valuables safe & Grow my portfolio protected 122 Intuit Confidential
    121. Gaps In Today’s Business Online Banking Offerings Top Workflows / Jobs Money In Money Out Paying Preparing / Creating Receiving Managing Tracking Filing / Invoicing Bills & Proposals Payments Payroll Expenses Paying Suppliers Taxes 123 Intuit Confidential
    122. Gaps In Today’s Business Online Banking Offerings Top Workflows / Jobs Money In Money Out Paying Preparing / Creating Receiving Managing Tracking Filing / Invoicing Bills & Proposals Payments Payroll Expenses Paying Suppliers Taxes Online Banking 124 Intuit Confidential
    123. Gaps In Today’s Business Online Banking Offerings Top Workflows / Jobs Money In Money Out Paying Preparing / Creating Receiving Managing Tracking Filing / Invoicing Bills & Proposals Payments Payroll Expenses Paying Suppliers Taxes Online Banking 125 Intuit Confidential
    124. Manage all outstanding invoices from one place
    125. Send your customers a reminder to pay you
    126. Easily create invoices
    127. Print, Fax, or Email professional looking invoices
    128. Receive invoice payments online
    129. SBFW updates invoices automatically as they are paid
    130. Business FinanceWorks Addresses Key Workflows Top Workflows / Jobs Money In Money Out Paying Preparing / Creating Receiving Managing Tracking Filing / Invoicing Bills & Proposals Payments Payroll Expenses Paying Suppliers Taxes + The first-ever complete, pre-integrated solution… V1 GA in December 2008 133 Intuit Confidential
    131. FIs & Users Love PFW… “Working with DI has helped us deliver best of breed solutions to our members. The addition of FinanceWorks to our offering is clearly going to be a market differentiator for us.” - SAFE Credit Union “Our customers’ feedback on our FinanceWorks beta has been overwhelmingly positive; we can see how this new capability could help drive even greater customer loyalty for BancorpSouth because it helps customers solve important financial tasks easily and all in one place.” - BancorpSouth Users 78% more likely to recommend their FI after using PFW Users 72% more likely to visit their FI website due to PFW - Source: 109 beta testers PFW Generally Available As Of September 10! 4 FIs live, 60+ Contracts Signed; 300+ in Pipeline 134 Intuit Confidential
    132. Lots Of Room For Growth Grow penetration of existing end users Potential ~ 9M 38M End-Users Grow number of Financial Institutions Total ~ 1800 16K Financial Institutions Expand services FinanceWorks, ??? Payroll Payments… FY09 Revenue Guidance $313M - $325M Expect to exit FY09 with double digit growth run rate 135 Intuit Confidential
    133. Consumer Tax Kiran Patel SVP and GM Investor Day 2008 136
    134. FY08 Strategy and Outcomes FY08 Strategy • Deliver Ease and win the early season • Free All Year • Improve Conversion • Ensure systems and infrastructure work FY08 Outcomes Won the whole season…gained share Free works! A/B Testing drove 13% increase in conversion Systems held strong and delivered 2X volume 137 Intuit Confidential
    135. Great FY08 Results Revenue $929M… 14% growth # of Customers 17M customers… 17% growth Acquisition 6M new customers …29% growth Retention 11M (74%) customers returned…up 3pts Great Year in FY08…Still Lots of Opportunity 138 Intuit Confidential
    136. Free Works Year 1: Year 2: Profitable Acquisition Customers Find Additional Value FREE Used TT last New to year TurboTax NEW Free Drives Profitable Customer Acquisition with Opportunity to Move Up to Paid 139 Intuit Confidential
    137. Free Works Average Selling Price Per Unit FREE NEW Steady Prices Despite Introduction of Free Source: Engineering Logs Intuit Confidential 140
    138. Leveraging Our User Community • Our 17 million customers are an unmatched asset…and we’re seeking ways to leverage it • Began offering “Live Community” online in TY06… letting customers answer other customers questions • Huge success online in TY07…rolling out more broadly in TY08 We’re just beginning to scratch the surface of this enormous asset 141 Intuit Confidential
    139. Live Community TY07 Success 50% of online customers used Live Community! 142 Intuit Confidential
    140. Lots of Room to Grow Estimated TY07 Individual Federal Returns 139M Returns $20B Revenue 100% 80 Professional Prepared 60 Tax Store 40 Software - Other 20 Software - TurboTax Manual 0 Returns Revenue TurboTax just 17% of Returns, 5% of Revenue Source: Intuit estimates Intuit Confidential 143
    141. Consumer Tax Prep Trends… We’re in the Sweet Spot Net 5 yr Price Promoter CAGR 3.5M Pro / CPA $230 24 2% filers exit Franchise/ $180 8 1% Tax Store Software $55 45 8% Manual $0 -47 -11% 5M filers enter 144 Source: Intuit estimates, IRS reports and public t u i t from taxf stores. t i a l I n filings C o n i d e n
    142. How We Win in 2009 1 Improve Ease 2 Drive Free 3 Increase Retention 4 Increase State Attach 5 Improve Web Conversion 6 Proactive Public Policy 145 Intuit Confidential
    143. Ease is the Biggest Source of Promotion and Detraction Promoters Detractors “Easy to use” “Difficult to Use ” 20% improvement 33% improvement FY07 FY08 FY07 FY08 146 Intuit Confidential
    144. Ease… Faster Return Completion 147 Intuit Confidential
    145. Ease… Leveraging Intuit’s Ecosystem $0 $0 Intuit Payroll – W2 Wages Welcome to Intuit, makers of TurboTax & QuickBooks Payroll. We’ll help you file your taxes in no time. Please enter your company EIN First Name Last Name Social Security Number 148 Intuit Confidential
    146. Ease… Innovation Dynamic Planning 149 Intuit Confidential
    147. Ease… Innovation Dynamic Planning Easy Navigation 150 Intuit Confidential
    148. Ease… Innovation Dynamic Planning Easy Navigation More Graphics 151 Intuit Confidential
    149. Ease… Innovation Dynamic Planning Easy Navigation Mobile Tracking More Graphics 152 Intuit Confidential
    150. Ease… Entire Customer Experience Product Support TV Print PR Retail Website 153 Intuit Confidential
    151. Continue to Drive Free 154 Intuit Confidential
    152. Improve Retention YOY Retention +3 pts $150 - $200M Opportunity 155 Intuit Confidential
    153. Improve State Attach TY07 State Attach Rate $2264 $813 Paid Free $20-$30M Opportunity 156 Intuit Confidential
    154. Improve Conversion 20.0% Year-over-Year FY08 improvement in FY07 conversion 15.0 FY06 10.0 5.0 0.0 15-Mar April 22-Mar 29-Mar 1-Mar 8-Mar 5-Apr 12-Apr 19-Apr 5-Jan 12-Jan 19-Jan 26-Jan 15-Dec 22-Dec 29-Dec 8-Dec 2-Feb 9-Feb 16-Feb 23-Feb December $15-$30M Opportunity 157 Intuit Confidential
    155. Desktop Pricing • Federal eFile Included • Deluxe $59.95 • Additional Returns (prep and efile) • $9.95 each Aligns Web and Desktop Experience 158 Intuit Confidential
    156. Proactive Public Policy We support our country’s voluntary compliance tax system by empowering the American taxpayer to achieve great tax outcomes with ease while partnering with the government to achieve tax policy objectives that benefit taxpayers. Three Priorities 1. Empower Taxpayer Compliance 2. Establish Intuit Leadership 3. Help Shape the Environment 159 Intuit Confidential
    157. How We Win in 2009 1 Improve Ease 2 Drive Free 3 Increase Retention 4 Increase State Attach 5 Improve Web Conversion 6 Proactive Public Policy 160 Intuit Confidential
    158. CTG Revenue Growth FY09 Revenue Guidance $1-1.04 Billion Projected Growth 8%-12% 00 01 02 03 04 05 06 07 08 09 161 Intuit Confidential
    159. Financial Perspective Neil Williams Chief Financial Officer Investor Day 2008 162
    160. Agenda Our Commitment to Deliver Shareholder Return Outlook for FY09 and Beyond 163 Intuit Confidential
    161. Intuit Financial Principles • Double digit annual organic revenue growth supplemented by acquisitions • Revenue growth greater than expenses • Generate operating income leverage…expanded OM% • Generate strong cash flow…in line with op income • While investing for future growth in: • Longer term business opportunities and infrastructure • And returning excess cash to shareholders • Normally in the form of share repurchase 164 164 Intuit Confidential
    162. Consistently Delivering Results EPS ($)** Revenue $3.0B(CAGR 21%) $3.0B $2.00 $2.7B EPS CAGR = 16% $2.3B 1.50 $2.0B 2.0 $1.8B Revenue $1.6B 1.00 $1.3B $1.1B $1.0B 1.0 0.50 0.0 0.00 99 00 01 02 03 04 05 06 07 08 Fiscal Years Ending July Fiscal Years Ending July ** EPS shown is non-GAAP; reconciliation to comparable GAAP figures later in this presentation 165 Intuit Confidential
    163. …With Operating Income Growth $1.0B 0.8 CAGR = 24% 0.6 0.4 0.2 0 99 00 01 02 03 04 05 06 07 08 Fiscal Years Ending July *These are non-GAAP financial measures. See attached reconciliation of non-GAAP measures to GAAP. 166 Intuit Confidential
    164. …And Operating Cash Flow Growth Cash Flow ($B) Cash Flow* (CAGR 23%) $1.0B CAGR = 31% 0.8 0.6 0.4 0.2 0.0 99 00 01 02 03 04 05 06 07 08 Fiscal Years Ending July *Cash Flow from Continuing Operations 167 Intuit Confidential
    165. …and $4.5B of Excess Cash Returned to Shareholders since FY02 $900M 600 300 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Authorization as of 8/1/08: $600M Note: Stock repurchase program began in FY02. 168 Intuit Confidential
    166. Agenda Our Commitment to Deliver Shareholder Return Outlook for FY09 and Beyond 169 Intuit Confidential
    167. 3 Year Performance Daily Closing Price $38 $36 CAGR $34 Intuit +11% $32 $30 $28 $26 $24 Nasdaq +2% $22 S&P + 1% $20 2005 2006 2007 2008 INTU and NASDAQ closing prices from 8/1/05 through 9/12/08 170 Intuit Confidential
    168. What we’ve heard… and see ourselves • Slowing organic revenue growth • Lack of operating leverage in FY08 • Increase in capital expenditures • Large acquisition mid-FY07 171 171 Intuit Confidential
    169. Agenda Our Commitment to Deliver Shareholder Return Outlook for FY09 and Beyond 172 Intuit Confidential
    170. Accelerate Organic Revenue Growth Rate Accelerating Double-digit Organic Revenue Growth • Delight customers with offerings that are easy to use… in alignment with our game plan to win • Bring new users into the franchise • Invest in demand generation…traditional and online • Use free offerings to bring new users into the franchise and monetize them over time • Ensure our investments are lined up against the highest value opportunities 173 173 Intuit Confidential
    171. Grow Revenue Faster Than Expenses Solve for Operating Profit Dollars, not Percent • Leverage power of portfolio to expand offerings, grow revenue • Higher revenue flowing across cost base provides opportunity for operating profit leverage • Sales of products and services into our customer bases are at a low customer acquisition cost • Focused allocation of resources through • Horizon planning for business units • Benchmarking to drive effectiveness/efficiency in G&A 174 174 Intuit Confidential
    172. Resource Allocation Using Horizon Planning H1 H2 H3 Established Emerging Viable Options Extend & defend Offerings that have a Potential for high the core offerings promising future growth offerings Revenue growth Slower Faster TBD (<15%) (>15%) (N/A) Current profit High Trending up Negative Portfolio Ratios For every 1 in H1… Should have 3 in H2… And 9 in H3 (pipeline growing) Investments Limited Significant Many small efforts, “Pay as you go” Application in FY09: $100M shifted from H1 to H2 and H3 175 Intuit Confidential
    173. Self-Funding Investment in Growth Sources and Uses of our reallocated investment dollars Sources Amount Uses Amount Infrastructure for Staffing actions ~$65M Connected ~$51M Services Fewer rooftops ~$7M Incr Demand Gen ~$31M Procurement/ supply chain ~$45M Funding for New ~$57M savings Businesses Total ~$117M Total ~$139M 176 176 Intuit Confidential
    174. Intuit Guidance for FY09 $ Range Growth Rate Revenue $3.35B - $3.43B 9% - 12% Operating $970M - $990M 13% - 16% Income* Diluted EPS* $1.86 - $1.90 16% - 19% Capital $200M -33% Expenditures *These are non-GAAP financial measures. See attached reconciliation of non-GAAP measures to GAAP. 177 Intuit Confidential
    175. FY09 Segment Revenue Guidance Guidance Growth QuickBooks $670 - $695M 8 – 12% Payroll & Payments $639 - $662M 14 – 18% Consumer Tax $1.0 - $1.04B 8 – 12% Accounting Professionals $345 - $358M 5 – 9% Financial Institutions $313 - $325M 5 – 9% Other Businesses $354 - $367M 6 – 10% 178 Intuit Confidential
    176. Thoughts on Macro Economic Conditions • Core businesses not directly impacted • Our offerings are low cost disrupters • Job loss traditionally leads to more business starts • A tough economy enhances the need for our offerings Strong Performance in a Variety of Economic Conditions 179 179 Intuit Confidential
    177. Intuit: A Strong Investment Our Commitment to Deliver • We manage the business with strong financial principles • We do what we say Shareholder Return • Stock has performed better than the market • We believe we can deliver even more value Outlook for FY09 and Beyond • We expect to have a strong FY09 with 9-12% revenue growth 180 Intuit Confidential
    178. Wrap-Up Investor Day 2008 181
    179. Wrap-Up • Focused on accelerating organic growth & op leverage • Great businesses with lots of headroom for continued growth… and a pipeline of new ideas in process • A clear game plan to win - delighting customers with easy-to-use connected services that solve important customer problems & help them achieve their dreams • Key areas of focus in the coming year: • Ease of Use … in a connected services world • New users ... “front doors” and “Free”… and monetize • Allocate resources against highest value opportunities 182 Intuit Confidential
    180. Appendix Investor Day 2008 183
    181. Cautions About Forward-Looking Statements This presentation includes \"forward-looking statements\" which are subject to safe harbors created under the U.S. federal securities laws. All statements included in this presentation that address activities, events or developments that Intuit expects, believes or anticipates will or may occur in the future are forward looking statements, including: our expected market and growth opportunities and strategies to grow our business; our expected revenue growth, operating income leverage and cash flow; and future market trends. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively affect our operating results and market position; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; any interuption or failure of our information technology and communications system could compromise the availability and security of our online products, which could damage our repution and harm our operating results; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products could harm our revenue, earnings and reputation; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; our acquisition activities may be disruptive to Intuit and may not result in expected benefits; our reliance on a limited number of manufacturing and distributing suppliers could harm our business; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operations; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to deliver products and services and gather information to effectively manage our business; our investments in auction rate securities are subject to risks that may cause losses and affects the liquidity of these investments; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and general economic conditions may effect our revenue and harm our business. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2008 and in our other SEC filings, available through our website at www.intuit.com. Fiscal 2009 guidance speaks only 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 this presentation. We do not undertake any duty to update any forward-looking statement or other information in this presentation. Intuit Proprietary & Confidential
    182. About Non-GAAP Financial Measures The accompanying presentation dated September 24, 2008 contains non-GAAP financial measures. Table 1, Table 2 and Table 3 reconcile the non-GAAP financial measures in that presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP net income (loss) per share. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. 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 consider part of ongoing operating results when assessing the performance of the organization, our operating segments or our senior management. Segment managers are not held accountable for share-based compensation expenses, acquisition-related costs, or the other excluded items that may impact their business units’ operating income (loss) and, accordingly, we exclude these amounts from our measures of segment performance. We also exclude these amounts from our budget and planning process. We believe that our non-GAAP financial measures also facilitate the comparison of results for current periods and guidance for future periods with results for past periods. We exclude the following items from our non-GAAP financial measures: • Share-based compensation expenses. Our non-GAAP financial measures exclude share-based compensation expenses, which consist of expenses for stock options, restricted stock, restricted stock units and purchases of common stock under our Employee Stock Purchase Plan. Segment managers are not held accountable for share-based compensation expenses impacting their business units’ operating income (loss) and, accordingly, we exclude share-based compensation expenses from our measures of segment performance. While share-based compensation is a significant expense affecting our results of operations, management excludes share-based compensation from our budget and planning process. We exclude share-based compensation expenses from our non-GAAP financial measures for these reasons and the other reasons stated above. We compute weighted average dilutive shares using the method required by SFAS 123(R) for both GAAP and non-GAAP diluted net income per share. • Amortization of purchased intangible assets and acquisition-related charges. In accordance with GAAP, amortization of purchased intangible assets in cost of revenue includes amortization of software and other technology assets related to acquisitions. Acquisition-related charges in operating expenses include amortization of other purchased intangible assets such as customer lists, covenants not to compete and trade names. Acquisition activities are managed on a corporate-wide basis and segment managers are not held accountable for the acquisition-related costs impacting their business units’ operating income (loss). We exclude these amounts from our measures of segment performance and from our budget and planning process. We exclude these items from our non-GAAP financial measures for these reasons, the other reasons stated above and because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. • Gains and losses on disposals of businesses and assets. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operating results. • Gains and losses on marketable equity securities and other investments. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operating results. • Income tax effects of excluded items. Our non-GAAP financial measures exclude the income tax effects of the adjustments described above that relate to the current period as well as adjustments for similar items that relate to prior periods. We exclude the impact of these tax items for the reasons stated above and because management believes that they are not indicative of our ongoing business operations. • 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 meet our 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 continuing operations 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 financial measures for the reasons stated above and because they are unrelated to our ongoing business operations. Intuit Proprietary & Confidential
    183. About Non-GAAP Financial Measures The following describes each non-GAAP financial measure, the items excluded from the most directly comparable GAAP measure in arriving at each non-GAAP financial measure, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. (A) Operating income (loss). We exclude share-based compensation expenses, amortization of purchased intangible assets and acquisition-related charges from our GAAP operating income (loss) from continuing operations in arriving at our non-GAAP operating income (loss) primarily because we do not consider them part of ongoing operating results when assessing the performance of the organization, our operating segments and senior management or when undertaking our budget and planning process. We believe that the exclusion of these expenses from our non-GAAP financial measures also facilitates the comparison of results for current periods and guidance for future periods with results for prior periods. In addition, we exclude amortization of purchased intangible assets and acquisition- related charges from non-GAAP operating income (loss) because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. (B) Net income (loss) and net income (loss) per share (or earnings per share). We exclude share-based compensation expenses, amortization of purchased intangible assets, acquisition-related charges, net gains on marketable equity securities and other investments, gains and losses on disposals of businesses, certain tax items as described above, and amounts related to discontinued operations from our GAAP net income (loss) and net income (loss) per share in arriving at our non-GAAP net income (loss) and net income (loss) per share. We exclude all of these items from our non-GAAP net income (loss) and net income (loss) per share primarily because we do not consider them part of ongoing operating results when assessing the performance of the organization, our operating segments and senior management or when undertaking our budget and planning process. We believe that the exclusion of these items from our non-GAAP financial measures also facilitates the comparison of results for current periods and guidance for future periods with results for prior periods. In addition, we exclude amortization of purchased intangible assets and acquisition-related charges from our non-GAAP net income (loss) and net income (loss) per share because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. We exclude gains on marketable equity securities and other investments, net from our non-GAAP net income (loss) and net income (loss) per share because they are unrelated to our ongoing business operating results. Our non-GAAP financial measures exclude the income tax effects of the adjustments described above that relate to the current period as well as adjustments for similar items that relate to prior periods. We exclude the impact of these tax items because management believes that they are not indicative of our ongoing business operations. The effective tax rates used to calculate non-GAAP net income (loss) and net income (loss) per share were as follows: 36% for fiscal 1999; 34% for fiscal 2000 and 2001; 33% for fiscal 2002 and 2003; 34% for fiscal 2004; 35% for fiscal 2005; 37% for fiscal 2006; and 36% for fiscal 2007, 2008 and 2009. Finally, we exclude amounts related to discontinued operations from our non-GAAP net income (loss) and net income (loss) per share because they are unrelated to our ongoing business operations. We refer to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate our internal comparisons to Intuit’s historical operating results. We have historically reported similar non-GAAP financial measures and believe that the inclusion of comparative numbers provides consistency in our financial reporting. We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in Table 2 include all information reasonably available to Intuit at the date of this presentation. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable equity securities and other investments. Intuit Proprietary & Confidential
    184. Non-GAAP Reconciliation: FY98-FY08 INTUIT INC. TABLE 1 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (Unaudited) Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2007 2006 2005 2004 2003 2002 2001 2000 1999 GAAP operating income (loss) from Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal continuing operations 2008 $ 2007 637,570 $ 2006 565,594 $ 2005 528,701 $ 2004 421,164 $ 2003 343,317 $ 2002 50,702 2001 (81,358) $ 2000 $ 12,414 1999$ 34,951 1998 GAAP operating income (loss) from Amortization of purchased intangible assets 30,926 8,785 9,135 9,069 10,241 12,378 14,949 7,003 5,278 continuing operations $ 650,767 $ 637,570 $ 565,594 $ 528,701 $ 421,164 $ 343,317 $ 50,702 $ (81,358) $ 12,414 $ 34,951 $ (19,087) Acquisition-related charges 19,964 9,478 12,686 19,576 28,853 181,289 247,806 150,208 84,570 Amortization of purchased intangible assets 56,011 30,926 8,785 9,135 9,069 10,241 12,378 14,949 7,003 5,278 529 Charge for purchased research and development - - - - 1,070 2,151 238 1,312 - Acquisition-related charges 35,518 19,964 9,478 12,686 19,576 28,853 181,289 247,806 150,208 84,570 16,280 Share-based compensation expense - 76,313 - 70,340 - 5,489 - 6,232- 2,714 1,070 2,534 2,151 2382,531 1,312 1,266 - - 53,800 Charge for purchased research and development Share-Loss on impairment of long-lived asset based compensation expense 113,237 -76,313 - 70,340 - 5,489 - 6,232 2,714 - 27,000 2,534 2,531 - 1,266 - - - - Non-GAAP of long-lived asset Loss on impairment operating income $ - 764,773 -$ 654,197 - $ 556,011 - $ 456,041- $ 386,195 - $ 276,054 27,000 $ 184,166 - $ 172,203 - $ - 124,799 16,154 Non-GAAP operating income $ 855,533 $ 764,773 $ 654,197 $ 556,011 $ 456,041 $ 386,195 $ 276,054 $ 184,166 $ 172,203 $ 124,799 $ 67,676 GAAP net income (loss) $ 440,003 $ 416,963 $ 381,627 $ 317,030 $ 343,034 $ 140,160 $ (82,793) $ 305,661 $ 386,564 $ 476,762 $ 440,003 $ 416,963 $ 381,627 $ 317,030 $ 343,034 $ 140,160 $ (82,793) GAAP net income (loss) Amortization of purchased intangible assets 30,926 8,785 9,135 9,069 10,241 12,378 14,949 $ 305,661 $ 7,003 386,564 $ 5,278 6,182 Amortization of purchased intangible assets 56,011 30,926 8,785 9,135 9,069 10,241 12,378 14,949 7,003 5,278 529 Acquisition-related charges 19,964 9,478 12,686 19,576 28,853 181,289 247,806 150,208 84,570 Acquisition-related charges 35,518 19,964 9,478 12,686 19,576 28,853 181,289 247,806 150,208 84,570 16,280 Charge for purchased research and development - - - - 1,070 2,151 238 1,312 - Charge for purchased research and development - - - - - 1,070 2,151 238 1,312 - 53,800 Share-based compensation expense 76,313 70,340 5,489 6,232 2,714 2,534 2,531 1,266 - Share-based compensation expense 113,237 76,313 70,340 5,489 6,232 2,714 2,534 2,531 1,266 - - Loss on impairment of long-lived asset Loss on impairment of long-lived asset - - - - - - - -- -- 27,000 27,000 - - - - - - 16,154 Pre-tax (gain) loss on disposal disposal andassets and businesses(51,571) Pre-tax (gain) loss on of assets of businesses (31,676) (31,676) (2,364) (2,364) - - -- -- (8,308) (8,308) 15,315 15,315 - - - - (4,321) (Gains) losses on marketable equity securities securities (Gains) losses on marketable equity (1,417) (1,568) (1,568) (7,629) (7,629) (5,225) (5,225) (1,729) (1,729) (10,912) (10,912) 15,535 15,535 98,053 98,053 (481,130) (481,130) (579,211)(579,211) - Income tax effects of related to non-GAAP items Income taxes non-GAAP adjustments (55,181) (34,512) (34,512) (19,047) (19,047) (7,730) (7,730) (11,270) (11,270) (10,549) (10,549) (76,751) (76,751) (128,823) (128,823) 109,256 109,256 176,171 176,171 (29,679) Discrete GAAP tax tax items other Exclusion of discrete GAAPitems andand other (5,155) 5,537 5,537 (3,458) (3,458) (13,298) (13,298) (25,146) (25,146) 59 59 (6,335) (6,335) 34,148 34,148 32,188 32,188 14,148 14,148 (5,869) Discontinued operations (26,012) 3,465 3,465 (36,000) (36,000) (3,884) (3,884) 7,237 7,237 (80,233) (80,233) (86,421) (86,421) (27,549) (27,549) 20,030 20,030 2,224 2,224 (3,576) Discontinued operations Cumulative effect of accounting change - - - - - - - (14,314) - - - Cumulative effect of accounting change - - - - - - (14,314) - - Non-GAAP net income $ 542,192 $ 508,452 $ 437,068 $ 378,800 $ 320,999 $ 284,277 $ 203,232 $ 159,560 $ 145,794 $ 89,744 $ 49,500 Non-GAAP net income $ 508,452 $ 437,068 $ 378,800 $ 320,999 $ 284,277 $ 203,232 $ 159,560 $ 145,794 $ 89,744 GAA P diluted net income (loss) per share $ 1.41 $ 1.24 $ 1.16 $ 1.01 $ 0.79 $ 0.81 $ 0.32 $ (0.20) $ 0.72 $ 0.97 $ 0.02 Non-GAAP diluted net income per (loss) per share GAAP diluted net income share $ $ 1.60 $ 1.24 1.43 $ $ 1.16 1.21 $ $ 1.01 1.01 $$ 0.79 0.80 $ $ 0.81 0.67 $ $ 0.32 0.47 $ $ 0.37 (0.20)$ $ 0.35 0.72 $ $ 0.22 0.97 $ 0.15 Non-GAAP diluted net income per share $ 1.43 $ 1.21 $ 1.01 $ 0.80 $ 0.67 $ 0.47 $ 0.37 $ 0.35 $ 0.22 Shares used in diluted per share amounts 339,268 355,815 360,471 376,796 400,162 421,910 435,794 430,710 422,542 399,632 327,782 Shares used in diluted per share amounts 355,815 360,471 376,796 400,162 421,910 435,794 430,710 422,542 399,632 See “About Non-GAAP Financial Measures” immediately preceding Table 1 for more information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. Intuit Proprietary & Confidential
    185. Non-GAAP Reconciliation: FY09 Guidance TABLE 2 INTUIT INC. RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME AND EARNINGS PER SHARE (In thousands, except per share amounts) Forward-Looking Guidance GAAP Non-GAAP Range of Estimate Range of Estimate From To Adjustments From To Twelve Months Ending July 31, 2009 Revenue $ 3,350,000 $ 3,430,000 $ - $ 3,350,000 $ 3,430,000 Operating income $ 724,000 $ 744,000 $ 246,000 [a] $ 970,000 $ 990,000 Operating margin 22% 22% 7% [a] 29% 29% Diluted earnings per share $ 1.41 $ 1.45 $ 0.45 [b] $ 1.86 $ 1.90 Shares 328,000 331,000 - 328,000 331,000 [a] Reflects estimated adjustments for share-based compensation expense of approximately $148 million; amortization of purchased intangible assets of approximately $60 million; and acquisition-related charges of approximately $38 million. [b] Reflects the estimated adjustments in item [a] and income taxes related to these adjustments. See “About Non-GAAP Financial Measures” immediately preceding Table 1 for more information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. Intuit Proprietary & Confidential
    186. Cash Flow from Continuing Operations TABLE 3 INTUIT INC. CASH FLOW FROM CONTINUING OPERATIONS EXCLUDING TAXES PAID (Dollars in thousands) [A] [B] [A] + [B] Net Cash Cash Flow Provided by from Operating Income Continuing Activities of Taxes Operations Continuing Paid Excluding Operations (Refunded) Taxes Paid Fiscal: 2001 $ 230,736 $ 39,131 $ 269,867 2002 351,623 101,645 453,268 2003 552,047 (21,684) 530,363 2004 552,513 112,357 664,870 2005 589,906 202,414 792,320 2006 595,460 228,282 823,742 2007 726,760 221,701 948,461 2008 830,190 185,549 1,015,739 See “About Non-GAAP Financial Measures” immediately preceding Table 1 for more information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. Intuit Proprietary & Confidential

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