Download pdf - Intuit - Investor Day Presentation 2012

Forward Looking Statements These presentation materials include forward-looking statements. There are a number of factors that could cause our results to differ materially from our expectations. Please see the section entitled “Cautions About Forward-Looking Statements” in the enclosed Appendix for information regarding forward-looking statements and related risks and uncertainties. You can also learn more about these risks in our Form 10-K for fiscal 2012 and our other SEC filings, which are available on the Investor Relations page of Intuit's website at www.intuit.com. We assume no obligation to update any forward-looking statement.

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.

Today’s Agenda

Break

Wrap-up and Q&A

CEO Perspective Brad Smith 1

Small Business Kiran Patel 2

Financial Management Solutions Dan Wernikoff 3

Chris Hylen Payments 4

Consumer Group Dan Maurer 5

Financial Services CeCe Morken 6

Financial Perspective Neil Williams 7

Brad Smith

President & CEO

External Market Trends

Our Company Strategy

Reflections On Our Performance




Revenue $4,151M 10%

Operating Income*

$1,404M 10%

EPS* $2.97 16%

FY’12 Financial Results

Actual Growth

*non-GAAP financial measure

My Reflections on FY’12 Performance

A solid year … we can do better

Grow organic revenue double digits #1

Grow revenue faster than expenses #2

Maintain a strong balance sheet

#3 Deploy cash to highest yield opportunities

#4


• “We & Others”–Network Effects

• Product & Design Thinking

• Mobile First/Mobile Only

• Acquire & Delight New Users

Needs more work. . .

• Portfolio & Expense Mgt.

• Technical Debt Focus

• Mobile Momentum

• Rapid Experimentation

Making Progress. . .

• Talent Dev. & Engagement





External Market Trends: Short Term

Number of Tax Filers

Digital Tax Advantage

143 143 141

143 146

2008 2009 2010 2011 2012

U.S. Unemployment

Consumer Indicators

Source: Bureau of Labor Statistics, Intuit

5.0% 7.3%

9.9% 9.8% 8.1%

2008 2009 2010 2011 2012

* Software $ represents TurboTax estimated average revenue per return.

Source: Intuit estimates, surveys

Manual

Franchise/Tax Store

Pro / CPA

Software ~5M filers enter

~3.5M filers exit

$239

$203

$46*

$0

51

28

38

-44

1%

-1%

7%

-14%

Price Net

Promoter 5 yr

CAGR

FY08 FY09 FY10 FY11 FY12

U.S. Unemployment


1.9%

3.1% 3.6% 4.4% 3.5% 2.9%

4.1% 3.2%

Help people get the maximum refund

IFS Mobile Banking

$58B in tax refunds Charge Volume: YoY Growth

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY’11 FY’12

Consumer Indicators

Same Store Sales • Remote Deposit now 11% of deposits

• Avoids overdraft fees averaging $29

Source: Intuit

5.0% 7.3%

9.9% 9.8% 8.1%

2008 2009 2010 2011 2012

Savings Rate


Identified $2.4B in

savings to date

Mint ways to save

IFS Merchant Rewards 1.9%

3.1% 3.6% 4.4% 3.5% 2.9%

4.1% 3.2%

5.0% 7.3%

9.9% 9.8% 8.1%

2008 2009 2010 2011 2012

U.S. Unemployment

Charge Volume: YoY Growth

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY’11 FY’12

Consumer Indicators

Same Store Sales

$2M in savings awarded

7.1% 8.2%

5.6% 4.4% 4.3%

2008 2009 2010 2011 2012

Source: Bureau of Economic Analysis, Intuit


Help SMBs Save Time & Improve Profit

Endorsed by most trusted advisors

70% of QB users

say it saves them time

Among our accountants…

Small Business Confidence Small Business Confidence

Small Business Indicators Small Business Indicators

Recommend QuickBooks

+84%

Source: Intuit, NFIB; Percentage of accountants is based on accountants who would recommend a QuickBooks solution

80

90

100

2008 2009 2010 2011 2012

92

84

95 92

92

Attract & Retain Customers

Guaranteed Return on Value

Delivered $3B in incremental

revenue to customers



Small Business Confidence Intuit Small Business Revenue Index


Source: Intuit

2008 2009 2010 2011 2012 thru August

-1.50%

0.00%

1.00%

80

90

100

2008 2009 2010 2011 2012

92

84

95

Pay 1 in 12 America Workers

Offer Benefits to Employees



Small Business Employment Index

2008 2009 2010 2011


Small Business Confidence Intuit Small Business Revenue Index

ViewMyPaycheck Health Debit Card -3.09% -2.90%

-0.18% 1.60% 0.09%

-4%

-2%

0%

2%

Intuit AssistedPayroll

Competitor Intuit AssistedPayroll

Competitor

Annual Average Cost Net Promoter Score

Source: Intuit

2012 thru August

2008 2009 2010 2011 2012 thru August

-1.50%

0.00%

1.00%

80

90

100

2008 2009 2010 2011 2012

92

84

95 92




Small Business Confidence Small Business Revenue Index

Small Business Employment Index Savings Rate

1.9%

3.1% 3.6% 4.4% 3.5% 2.9%

4.1% 3.2%

5.0% 7.3%

9.9% 9.8% 8.1%

2008 2009 2010 2011 2012

U.S. Unemployment


Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY’11 FY’12

Consumer Indicators

2008 2009 2010 2011

-3.09% -2.90%

-0.18% 1.60% 0.09%

-4%

-2%

0%

2%

2008 2009 2010 2011 2012 thru August

-1.50%

0.00%

1.00%

2012 thru August

7.1% 8.2%

5.6% 4.4% 4.3%

2008 2009 2010 2011 2012

80

90

100

2008 2009 2010 2011 2012

92

84

92 95

2012 thru August

2008 2009 2010 2011 2012 thru August

-1.50%

0.00%

1.00%

Small Business Employment Index

2008 2009 2010 2011

-3.09% -2.90%

-0.18% 1.60% 0.09%

-4%

-2%

0%

2%


18


80

90

100

2008 2009 2010 2011 2012

92

84

91 95


Small Business Confidence Small Business Revenue Index

Savings Rate

7.1% 8.2%

5.6% 4.4% 4.0%

2008 2009 2010 2011 2012

1.9%

3.1% 3.6% 4.4% 3.5% 2.9%

4.1% 3.2%

5.0% 7.3%

9.9% 9.8% 8.1%

2008 2009 2010 2011 2012

U.S. Unemployment


Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY’11 FY’12

Consumer Indicators

OUTLOOK: Sluggish Recovery

OPPORTUNITY: Our products are needed most in difficult times

Key takeaway: not immune, but resilient

FY'08 FY'09 FY'10 FY'11 FY'12

GDP Growth

$2,978 $3,073 $3,403

$3,772 $4,151

0%

-3%

2% 2% 2%

+10%

Intuit Revenue

Value Creation Shifts

Technology Shifts

Geographic Shifts

Implications

Demographic Shifts

Trends

Connected Services Economy

People and businesses increasingly turning to “connected services”

in a social, mobile, and global world

Traditional paper-based, human-produced, brick-

and-mortar bound services are the past

External Market Trends: longer term

FY’10-12 Operational Priorities

Intuit’s Strategy: how we accelerated results In

novati

on

Fo

r G

ro

wth

• SaaS & PaaS (cloud computing, services, 3rd party/social contrib., data)

• Mobile Computing (platforms/devices, applications, business models)

• “Always On” Delivery (high availability, scalability, security)

• Mobile 1st/Mobile Only (design, capabilities, new mkts & biz models)

• Network Effect Platforms (“we & those we enable” – virtuous circle)

• Data For Delight (NED, new/improved user outcomes, stewardship)

g

Accelerate Our Transition To Connected Services

Drive Growth In Our Core Businesses

Build Adjacent Businesses & Enter New Geographies

Intuit’s Growth Strategies

• Acquire New Users (expand our categories, delightful 1st use, social)

• 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)

• Advantaged Payments Network (transform SMB remote payments)

• Accelerate Global (small business platform, localized by others)

What has resulted: strong, growing businesses

Customer Behavior by Market # of prospects/customers (units)

Manual/ Non-Cons.

Category Competitors

Non-Category Competitors

Mobile

Intuit NP vs. Closest Comp. (+/-)

Category Size, Growth & Position

Payroll 6M SMBs

Fin. Mgmt 29M SMBs

Payments 29M SMBs

ProTax 400K Accts

Cons. Tax 146M returns

Digital Bank 250M txn accts

Category Definitions

Online Desktop

+15 +19

Online

+24 +30

Desktop

+1

Online

+1

+17

Desktop

+6

End Customers

+18

Financial Institutions

• $2.5B • 7% CAGR • #1

• $4.4B • 2% CAGR • #1

• $12B • 5% CAGR • #6

• $1.9B • 4% CAGR • #1

• $1.8B • 5% CAGR • #1

• $9B • 5% CAGR • #2

+11

QBMAS

-13

Desktop

What has resulted: improved portfolio & lives

improvement from FY10

64% of revenue from Connected Svcs.

55 mobile apps averaging 4.3 stars

FY08 FY12

50% 64%

$1.5B

$2.7B

# Active Users (M’s) Revenue ($M’s)

FY08 FY12

0.1 7M

FY08 FY12

0

$70M

Strong Innovation Pipeline

Connected Services Reshaping Revenue

Focusing On Mobile Devices

Help families put up to $1,000 back in their pockets… $2.4B+ in consumer savings identified to date

Help people get the maximum tax refund… $58B in tax refunds, 1 out of every 3 tax returns e-filed

Help small businesses be more profitable… Customers revenues ~25% of U.S. GDP, pay 1 in 12 American workers

Help accountants be more productive… Serve half of all accounting firms

Improve FI profit per customer by 20%… Internet Banking customers equal to the 5th largest U.S. bank

Improving

Lives 60M

Improving

Lives 50M

45M Hosted

35M Hosted

$100M 10X in FY’12 from products that

didn’t exist 3 years ago

60

M C

usto

mers

45

M H

oste

d

What has resulted: improved portfolio & lives

improvement from FY10

64% of revenue from Connected Svcs.

55 mobile apps averaging 4.3 stars

FY08 FY12

50% 64%

$1.5B

$2.7B

# Active Users (M’s) Revenue ($M’s)

FY08 FY12

0.1 7M

FY08 FY12

0

$70M

Strong Innovation Pipeline

Connected Services Reshaping Revenue

Focusing On Mobile Devices

Help families put up to $1,000 back in their pockets… $2.4B+ in consumer savings identified to date

Help people get the maximum tax refund… $58B in tax refunds, 1 out of every 3 tax returns e-filed

Help small businesses be more profitable… Customers revenues ~25% of U.S. GDP, pay 1 in 12 American workers

Help accountants be more productive… Serve half of all accounting firms

Improve FI profit per customer by 20%… Internet Banking customers equal to the 5th largest U.S. bank

$100M 10X in FY’12 from products that

didn’t exist 3 years ago

Stock Price Performance (%)

ROIC = 23.9% +3 pts/year over year

102% of Free Cash Flow

$0.60/share $0.68/share

Return to Shareholders in FY’12

Cash Returned to Shareholders

Implementation of Dividend

$1.1B Buybacks

& Dividends

Return on Invested Capital in FY’12

NASDAQ 15%

Intuit 105%

-100%

0%

100%

200%

July 2012

Aug 2007

What has resulted: strong return on investment

GDP Growth

5 Year Revenue CAGR

5 Year Operating Income CAGR

5 Year EPS CAGR

FY'08 FY'09 FY'10 FY'11 FY'12

$2,978 $3,073 $3,403 $3,772 $4,151 +10%

0%

-3%

2% 2% 2%

FY'08 FY'09 FY'10 FY'11 FY'12

+13%

$858 $941 $1,130 $1,275 $1,404

FY'08 FY'09 FY'10 FY'11 FY'12

+16%

$1.60 $1.85 $2.18 $2.56 $2.97

Intuit Revenue

“Prediction is very difficult, especially about the future” – Yogi Berra The World of 2020 Implications for Intuit

The market is shifting: view of the horizon

Solutions for the “Free Agent” Market

Global Citizens & “Free Agents”

• Participation-driven innovation • Increase in user/developer value creation

• Expectation of open & frictionless

• Ecosystem and network effects win

Winning Products & Network Effect Platforms

Global Innovative Growth Company

• The mobile experience prevails • Connected devices that work seamlessly

• More intuitive interfaces – voice & gesture

• Weaving a web of apps – “mini-tasks”

“Mobile Defined” Connected Experiences

• Humanizing the data • Life & business through the lens of data

• Personal informatics/“Moneyball” for SMB

• Beyond compliance – stewards of trust

Big Data for the Little Guy

• A world without borders • The cloud has no “borders”… empowering all

• 1B new middle class in emerging markets

• 30+% of workers are “contingent”




Our Mission: why we exist as a company

…and those who serve them

We serve these end customers

Consumers Small Businesses

Accountants Financial

Institutions Healthcare

Players

3rd Party Contributors

Financial… making & saving money,

grow & profit

Productivity… turning drudgery into time

for what matters most

Compliance… without even having to

think about it

Confidence… from the wisdom &

experience of others

“Better Money Outcomes”

To improve our customers’ financial lives so profoundly… they can’t imagine going back to the old way

Our Values: what we stand for

Integrity Without Compromise 1

Delight Customers

It’s the People

Innovate and Improve

Own the Outcome

We Care and Give Back

2

3

4

5

6

• Deliver the customer benefit • They actively use • They proactively recommend

Love Metrics

Customer Driven Innovation

Design for Delight Customer Driven Innovation

We strive to create an entrepreneurial environment where small teams innovate to delight customers…

Core capabilities: how we differentiate

High Performing Organization

Employee

Lots of Delighted Customers Higher Stock Price

• Contribute to a better world • Live Intuit’s Operating Values • Leader in Corporate Social Resp.

• Talented & engaged workforce • We have the talent & skills to

delight our customers and accelerate growth

• Employee Engagement >85%... no work group <80%

• Pride in our performance • “Most Admired” recognition • “Most Innovative” recognition • “Best Places To Work” recognition

• Grow user & contributor bases • New user & contributor growth • Existing user & contributor retention

• Offerings that delight customers • Performance against delivering

the customer benefit (# or %) • Net Promoter scores >10 pts

better than best alternatives

• Solve more customer problems • # offerings used per customer • # of customers using offerings

launched in last 3 years

• Confidence in long term growth potential & our ability to deliver on commitments

• Grow organic revenue double digits, supplemented by acquisitions

• Grow revenue faster than expenses • Generate op. income leverage • Generate strong cash flow in line with

operating income

• Deploy cash to high yield oppty… risk adjusted returns of 15+% • Organic & inorganic oppty’s • Repurchase Intuit securities • Dividend

• Maintain a strong, conservative balance sheet

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

Customer Shareholder

Intuit’s Strategy: how we accelerate results In

no

vati

on

Fo

r G

ro

wth

g






Delivering Awesome Product Experiences


no

vati

on

Fo

r G

ro

wth

g





Enabling the Contributions of Others-

“Network Effect Platforms”



no

vati

on

Fo

r G

ro

wth

g






Using Data to Create Delight


FY’13-15 Operational Priorities

g

Using Data to Create Delight





Intuit’s Strategy: how we accelerate results

• Amazing 1st Use Experiences: delivering the customer benefit

• Reimagining Mobile 1st/ Mobile Only: design and capabilities

• Solving Multi-Sided Problems Well: creating a virtuous circle

• Expanding Globally: platforms localized by users and developers

• Enabling Customer Data: better products & break-through benefits

To be a premier innovative growth company…

Accele

rati

ng

to

Co

nn

ecte

d S

ervic

es

Improving Our Customers’ Financial Lives So Profoundly…

Suppliers Gov’t

Developers

Consumers FIs

Accountants Employees

Small Businesses

Delivering awesome product experiences

Suppliers Gov’t

Developers

Consumers FIs


Small Businesses


Enabling the contributions of others


Suppliers Gov’t

Developers

Consumers FIs


Small Businesses

More than $2.4B in savings identified



Using data to create delight


Suppliers Gov’t

Developers

Consumers FIs


Small Businesses



Using data to create delight


• Employee Engagement Scores >85%

• Top 25 in 100 Best Places to Work

• #1 Most Admired Software Company

Employees • Grow our categories and be the share

leader on mobile, web & desktop

• Be the recognized leader in delivering the customer benefit by offering

• Best in category net promoter results

Customers

Execution with Excellence: FY’15 Goals

• Double digit organic revenue growth + M&A

• Margins in the mid-30’s

• Outperform in Total Shareholder Return

Shareholders

• Employee Engagement Scores >85%

• Top 25 in 100 Best Places to Work

• #1 Most Admired Software Company

Employees


#19 Best Places

to Work

#1 Most

Admired

85 EE Score

• Grow our categories and be the share leader on mobile, web & desktop

• Be the recognized leader in delivering the customer benefit by offering

• Best in category net promoter results

Customers


80% of offerings are #1

90% have NPS adv.

• Double digit organic revenue growth + M&A

• Margins in the mid-30’s

• Outperform in Total Shareholder Return

Shareholders


Revenue growing at

10% 33.8% Margin

Top 15% TSR

Summary

We have strong assets & clear strategy to win

Our value proposition resonates… in the current period & longer term

Execution in FY’12 was solid… but we can do better

“Prediction is very difficult, especially about the future” – Yogi Berra The World of 2020 Implications for Intuit

The market is shifting: view of the horizon

Solutions for the “Free Agent” Market

Global Citizens & “Free Agents”

33

• Participation-driven innovation • Increase in user/developer value creation

• Expectation of open & frictionless

• Ecosystem and network effects win

Winning Products & Network Effect Platforms

Global Innovative Growth Company

• The mobile experience prevails • Connected devices that work seamlessly

• More intuitive interfaces – voice & gesture

• Weaving a web of apps – “mini-tasks”

“Mobile Defined” Connected Experiences

• Humanizing the data • Life & business through the lens of data

• Personal informatics/“Moneyball” for SMB

• Beyond compliance – stewards of trust

Big Data for the Little Guy

• A world without borders • The cloud has no “borders”… empowering all

• 1B new middle class in emerging markets

• 30+% of workers are “contingent”

Small Business Group Kiran Patel, EVP

Context and FY’12 Recap

Growth Strategy and Priorities

FMS and Payments



FMS and Payments

We improve the bottom line of small businesses by >20%…

Get and keep customers

Manage finances

Make/Accept payments

Hire/Manage employees

Intuit Full Service Payroll

SBG Vision and Offerings

Perspective on FY’12

• Revenue per customer up 14%

• Progress in Global Expansion (QBO)

• Added Demandforce to Business

• New User Acquisition

• Payments and Payroll Attach

• 20% Growth in Connected Services

What Could Improve. . . What Feels Good. . .

• Solve new SMB problems



FMS and Payments

SMB Market is Big and Growing

• 29M SMBs in the US

• 500M SMBs Globally

• $60B in US SMB Spend in Target Markets

$3.3 $12.0

$21.0 $24.0

FMS Payments EMS Acquire

Customers

+7%

+5%

+12% +15%

• Acquire Customers segment growing fast

• Non-Consumption is biggest opportunity

Growth Rate Current SMB Spend ($B)

Lots of Growth Opportunities

Disruption

Conversion

Financial Mgmt

29M SMBs

Payroll 11M Employers

Payments 29M SMBs

Front Office

29M SMBs

Non Consumption

Manual (e.g., excel)

Do not accept cards Nothing or

“Word of Mouth” Marketing

QuickBooks

Quicken Intuit Payroll

Other Software Solution Other Software

Solution Intuit

Payments

Other Merchant Svcs Provider

Demandforce

Agencies / Combination of Point Solutions

NPS on our products +10-30 points better than closest competitors and +80-90 points better than manual methods

Accelerate Transition To Connected Services


In

no

vati

on

Fo

r G

ro

wth


• Acquire New Users

• Retain Users

• Increase Revenue/User

• Mobile 1st/Mobile Only

• Network Effect Platforms

• Data for Delight

• Extend the Core

• Advantaged Payments Network

• Accelerate Global

FY’13 – FY’15 Priorities SBG’s Growth Strategies

SBG’s durable strategy for growth

1

2

3

Acquire new users

Grow QB active users from ~4M

today to >7M by FY’15

1

• 3M U.S. QB Prospects; 500M SMBs, globally

• Convert with simple 1st use and global-ready QBO

Grow QB Adoption in US & Globally Convert Non-Consumption: New Offerings

QB Prospects

QB Users

Global

Drive New QB Adoption

Acquire new Payroll and

Payment users

• 15M non-consumption SMBs in the US

• Target with Mobile 1st & Connected Solutions

Non- Consumption

Large Opportunity in Payroll

• 11M U.S. SMBs with payroll needs

• Go beyond QB with online, full-service, mobile

Non-QB W2

QB W2

1099

Mobile payments brings new to franchise

• 70% of GoPayment customers are new to franchise

• Selectively expand mobile payments

Non- Consumption

Intuit Payments

Other Providers

Continue to grow attach

Penetrating QuickBooks ecosystem

remains key

1

Lifetime Value of QBO exceeds desktop

$5B attach opportunity

remains

1 Yr 5 Yr 1 Yr 5 Yr

QB Pro QB Online

$409

$978

$382

$1409 Software

Ecosystem Attach

Current Attach

Attach Opportunity

Desktop Online

Use data for in product discovery

29% 17%

$1.1B Payroll Attach Opportunity

Current Attach

Attach Opportunity

Desktop Online

Payments as a QB Feature

5% 6%

$4B Payments Attach Opportunity

Extending the Core: Demandforce

Effortless Communication Use email, text, social and search to grow your business and keep customers coming back

Online Reputation Build, maintain and leverage your most valuable asset – a good online reputation

Demandforce Network

Increase exposure to your local community and maximize results

Helping SMBs thrive in an evolving & increasingly complex, connected world

Automated marketing & communications solutions

Value proposition based on generating 3x ROI each month

2

2

History of Fast Revenue Growth

Long Runway for Future Growth

131% Annual CAGR

Quarterly Revenue ($M)

Q1’2005 Q4’2011

Current Rev

Current vertical opportunity

New vertical opportunity

Non-consumption

($ millions)

$600M Opportunity

$600M Opportunity

• +$1B opportunity by 2017 expanding to new verticals & growing in current verticals

• Additional upside: leveraging QuickBooks base, going global

• Demandforce will add 3-4 points of revenue growth to SBG in FY’13; 1-2 points of growth for Intuit

Demandforce contributing to SBG’s growth

Accelerating transition to connect services 3

MOBILE PLATFORM DATA

Designing for always connected, mobile 1st

users

Snap Payroll

GoPayment

MAC iPad iPhone

Mobile 1st QuickBooks

Building scalable platforms across SBG

Apps.com (IPP)

Intuit Commerce Network

Surfacing developers & apps

Enabling better remote, B2B interactions & transactions

‘Emerging’ DATA Assets

• 5M SMBs

• 1.2M Payroll SMBs

• 100K Developers

• 250K Accountants

• 360K Payments SMBs

Leverage data assets to delight customers & build

new businesses

‘Enduring’ Assets...

~2B Invoices ~1.5B Bills Paid

1.6B Vendors 4.2B Customers

30M Employees

$2T in Commerce



FMS and Payments

Summary

• Growth in our core businesses is accelerating

• Laser focused on new users and growing attach

• Very excited about new adjacent business

• Looking forward to another strong year for SBG

FY’13 revenue growth guidance: 15% to 17%

Financial Management Solutions

Dan Wernikoff, SVP & GM

Overview

Context & FY’12 Review

Opportunity & Growth Strategy



Manage finances







Manage finances






What Feels Good… What Could Improve…

• Growth in QB Subscribers

• QB as an effective channel for attach

• Pace of new user growth in QB

• Harnessing our users/social

• Our Apple ecosystem offering • QB as a 3rd party platform

• Our global investment and launch

FY09 FY10 FY11 FY12

FMS Units and Revenue per Unit

1YR 5YR 1YR 5YR 1YR 5YR

Desktop Pro

Online Enterprise

$194 $281 $264

$919 $2,606

$5,096

Total QB Units …And cumulative subscribers (000s)

188

433

Revenue per Unit …Software revenue (excluding attach)

Cumulative Subscribers

QB Enterprise QB Online

QB Desktop

1,662 1,574 1,571 1,575

213 220 228 220

97 110 156 199

233 229

238 272

FY11

$622

FY10 FY12

$691

$559

FY09

$544

FY’12 “Other” revenue includes $12 million in revenue from Demandforce. All periods exclude Intuit Websites.

Desktop

Online & Enterprise

Other

FY12 Growth

14%

28%

-4%

3-YR CAGR

5%

27%

1%

FMS Segment operating income margin up more than 15 pts. since FY’09

FMS Segment Revenue

Overview

Context & FY’12 Review

Opportunity & Growth Strategy

Opportunity within FMS

Disruption

Conversion

Non consumption

Other Software Providers

42

37

19

12

3

-11

-42

QuickBooks

Accountant

Online Banking

Spreadsheet

Online SW

Desktop SW

Manual29M SBs

Net Promoter Score by Method The US Financial Management Opportunity

Opportunity beyond FMS

$13B

$12B

$0.8B

$2.5B

Global FMS

~$100B

Supplies

US SB Software

SB Mobile $1.5B

SB Lending

SB Payments

SB Payroll

$24B

SB FMS

SB Non Consumption

$1.2B

Mid Market FMS $6B

$60B

Acquire & Retain Customers

$4.4B

SB Purchasing

$3.8T in Spend

The FMS Growth Strategy

Mission: Improve the bottom line of SBs by saving and $

Drive New User Adoption

1

Make Customer(s) Data Useful

2

Deliver Great Customer

Experiences 3

• An amazing first use, QB and Pre QB

• Accelerate global growth

• Help small businesses get and save money

• Evolve QB into a 3rd party platform

• QuickBooks cares about its customers

• Reimagine the FMS/SBG product experience

New User Opportunity

~14M Software Users

~12M Non Consumption

~3M QB Prospects

+

The US Opportunity ~29M Small Businesses

The Global Opportunity ~500M Small Businesses

Worldwide QuickBooks

• Int’l distribution in 7 countries • Estimated 4 million Non-US QB users

Prospects Drive New User Adoption

1

Subs

Active Users

Trial Sign Ups

Demand (Traffic)

Convert More QB Prospects

Pre-Accounting Non-Consumption

Solve Global Financial Management Needs

Improving traffic to active conversion by 1 pt. doubles the growth rate of our active base

Our first offering to address pre-accounting FMS needs

~10% of new user growth in 1st year. Worldwide offering

just released into market

Global Drive New User Adoption

1

Harnessing our base to localize the product

Experiments underway to enables users to share/validate translation & configurations...

…USERS are localizing the software

Global Results - First 60 days

Global Results - First 60 days

Being used in 130 countries >300 tax agencies >560 customer tax rates 45 unique languages selected

Ecosystem Make Customer(s) Data Useful

2

Better Integration of Payments/Payroll

We Create the Next Payments/Payroll

3rd Parties Create the Next Payroll/Payments

A 1pt increase in attach to QB = $95M in 5YR payments

revenue

>60% of QB users sought financing over the last 2

years, 2/3rd are turned down

Over 300 developers and 150,000 app users in the QB

base

Deliver Great Customer Experiences

3 Reimagine QuickBooks

Mobile First / Mobile Only

~2B Invoices

~1.5B Bills Paid

1.6B Vendors

4.2B Customers

30M Employees

$2T in Commerce

The New Opportunity

5M SMBs

100K Developers

250K Accountants

1.2M Payroll SMBs

>90% Retail Share

360K Payments SMBs

FY

08

FY

11

FY

12

FY

13

FY

14

FY

15

FY

09

FY

10

Our Emerging Assets

2M Company Files in the Intuit Cloud

Our Enduring Assets + =

133K

2M

Summary

• Focusing on new user growth with new offerings

– Mint-like offering for pre-accounting

– Mobile version of QB

– A Global QB

• QB continuing to evolve into a channel & platform

• Opening up the opportunity for data advantaged services

Intuit Payments Chris Hylen, VP & GM

FY’12 Recap/Reflections

Capturing the Opportunity

Context



Context



Manage finances





What: We solve small business payments needs

QuickBooks Payments Mobile Payments Retail Payments

Get paid anywhere, with any payment type, on any device

How: Generate “spread” per transaction

Purchase price

Discount rate

Net merchant proceeds

“Typical” Transaction

Discount Rate (charged to merchant)

Reported Revenue

100 3 97

Interchange

Network Fees

Transactional Spread



Context

FY12 FY11 FY10

FY’12 Outcomes: We have momentum

$313M $348M

$417M +15%

Small Business Payments Revenue

• #6 active merchants

• #2 in mobile card acceptance

291K 322K 363K

FY12 FY11 FY10

+14%

Small Business Payments Active Customers

Card

Check/ACH

13% CAGR

QuickBooks volume is almost half our total and growing fast

44%

4% 16%

36%

FY12 FY11

QB Card

QB Check

12

-26

Non-QB QB

+18%

FY’12 Volume QuickBooks Growth

Net Promoter

100%=$36B

QuickBooks volume: important and growing…

Non- QB card

Non-QB check


• Revenue and margin growth

• Net Promoter scores increasing

What Feels Good. . .

• Customer acquisition accelerating

• Simplicity – first use, pricing, line-up

• Usage – get to first payment

What Could Improve. . .

• Accelerate platform and network



Context

Lots more room to penetrate base Payments penetration of

QuickBooks base (2012) QuickBooks Penetration

FY 2009-12 (%)

2012 2011 2010 2009

Current Attach Opportunity

$4B opportunity 3.7 3.9 4.3 5.0

Card

Check/ACH

5% penetration

~2B Invoices

~1.5B Bills Paid

1.6B Vendors

4.2B Customers

30M Employees

$2T in Commerce

Incredible assets: Leveraging the QB ecosystem

5M SMBs

1.2M Payroll SMBs

100K Developers

250K Accountants

360K Payments SMBs

FY

08

FY

11

FY

12

FY

13

FY

14

FY

15

FY

09

FY

10

Our Emerging Assets

2M Company Files in the Intuit Cloud

Our Enduring Assets + =

133K

2M

94

The application has gone from 6 pages, 38 fields and two days….

… to 1 page, 4 fields and less than a minute...

Pre-fill of several fields… followed by 4 simple fields to be filled in by the

customer

FY 11 FY 12

Continue focus on first use

Data allows us to open the funnel

QBO Example

August 2011 July 2012

Applications converted

Applications approved

100 100

26% 34%

79% 88%

x x

= =

20 new customers 30 new customers

Prospective customers

QB 2013: Payments as a Feature

Express set-up with data pre-fill

Payments within QuickBooks workflow

Welcome email during process

Automatic activation

1

2

3

4

Experiments to further accelerate growth

IPN Platform

Leverage IPP to monetize others in QB

base

Invoice Payments

Usage

Activated

Active

Bringing new users up the “usage curve”

Summary

• Small Business payments – any payment type on any device

• Gaining momentum in the business

• Focused on capturing the opportunity

– First use as a conversion engine

– Payments as a feature

– Experimentation to drive growth

Consumer Group Dan Maurer, SVP and GM

Proven: consistent, strong results

FY’09-FY’12 Change

3 Yr CAGR

Revenue +445M 13%

Units +6M 10%

Software Unit Share +1.5pts

Net Promoter +2

Retention Rate +1pt

FY’12 Reflections

• Revenue per Customer

• Ease with Mobile

• Emotional Connection

• Free Tax Advice

End to End customer experience

• Grow Share

• Net Promoter Score

• Free Tax Advice

Leadership in online category share…

58%

14%

FY11

59%

13%

FY12

TaxAct

All Other

H&R Block

TurboTax

18%

10%

18%

10%

… but not growing category fast enough

0

50

100

150

34%

60%

FY10

141

32%

60%

FY09

143

30%

60%

FY12

146

35%

60%

FY11

143

Pro/Tax Store

Manual Software

Units (M)

1.9 pts 1.6 pts 1 pt

Lots of room for long-term growth

Manual

Software

Tax Stores

Pros

Revenue (Intuit Estimate)

Est. FY12 Returns (Intuit Estimate)

TurboTax has just 21% of Total Tax Returns, 7% of Revenue

~146M ~$20B

* Software $ represents TurboTax estimated average revenue per return.


Manual

Franchise/Tax Store

Pro / CPA

Software ~5M filers enter

~3.5M filers exit

$239

$203

$46*

$0

51

28

38

-44

1%

-1%

7%

-14%

Price Net

Promoter 5 yr

CAGR

FY08 FY09 FY10 FY11 FY12

Strategically positioned in the sweet spot

Manual is not our largest customer source

Sources of FY’09-’12 TurboTax customers

Retention of existing customers

Competitive prep methods

Manual

New filer

Plenty of non-manual returns


Simple returns

from non-manual sources

Many dissatisfied

with current service

20-30M 10-20M

Opportunity: 1M new customers ~$50M

Opportunity: reacquire & retain customers

70M+ unique visitors to TT.com

~35M unique customers over last 3 years

Customer gains and loses

Acquisition Attrition

55 63

72

FY10 FY11 FY12

21

24 25

FY10 FY11 FY12

7.1 7.8 7.5

FY10 FY11 FY12

1 pt conversion = $40M and 720k customers 1 pt retention= $14M and 250k customers

Our long-term strategy to win

Where someone is in your corner

Expert Advice Personalized

Technology

“Deliver My Maximum Refund… Easy, Fast and On-Time”

Personalized Experience



• 25M customers means we understand tax needs better than anyone else

• What could that mean?

• Technology and data to improve the experience

Expert Advice

• Only certified enrolled agents or CPAs

• Easier access when customer has questions

• Experts making the product better



Someone in Your Corner

• We are there during the entire end to end experience

• Technology to help tax experts make the customer experience better



Consider/ Commit

Prep

Refund On Time

Finish & File Accept/Reject

Post-Refund

Tech refresh…deliver ease with mobile

FY’12 Results

• Over 2.5M downloads

• Over 270k completes*

• Top grossing app in finance category apps

Looking forward to FY’13

• Photo OCR for W-2s

• Double coverage to virtually all simple filers

* Includes TurboTax Online completes with 100% page views from mobile device

Growth Rate Averages: FY’09-FY’12 Long Term View

Individual Federal Returns <1%/yr 1-2%

TurboTax Revenue Growth ~12%/yr 8-12%

SW Category ~6%/yr 4-6%

TurboTax SW Share ~3%/yr 1-2%

Revenue per Customer ~3%/yr 3-4%

Long-term business model

Source: Intuit estimates

FY’13 Revenue Growth Guidance = 8% to 10%

Consumer Group Summary

Clear Strategies to Win: • Personal, experts, in your corner

Strong Growth Results: • Need to lead category growth

Focused Execution: • Technology and process reinvention

Intuit Financial Services

CeCe Morken, SVP & GM

• Mint monetization

• Mobile only

Areas of focus for FY’13. . .

• 5% revenue growth (9% adj.)

• Increased avg. revenue/user

• New tech. platform complete

• New sales bookings up 230%

Making Progress. . .

• Mobile revenue up 200%

Reflections on FY’12 Performance

• Global presence

Market dynamics play to our strength

Growing market as digital banking becomes the destination for financial offerings

Financial Institution • New sources of Revenue

Consumer and SB

• Save time and money

Technology

• High FI engagement

Investments

• Increased spend in Digital Banking

…beginning global expansion …

Expanding our opportunity in key platform areas

1. Mobile Banking

~ $1B+

2. Small Business Solutions

~ $1.5B+

3. Personal Financial Management

~ $1B+

4. Expanded Payments

~ $0.7B+

…spurred by four key growth areas

…experiencing

$4B expansion domestically…

Result: $9B market opportunity… where FI’s have increased spending

Total market opportunity

Increase net user growth globally… acquire, adopt, retain

Our Strategy: How we will deliver results

• Deliver Mobile as the primary financial channel

• Enable Mint as the standard for Consumer/SB Financial Mgmt.

• Simplify the Payments experience to drive usage

• Leverage Data to deliver highly targeted cross sell

Outcomes

The OPEN Financial Services Platform

Connecting a network effect multi-sided market of:

Small Businesses & Consumers

Financial Institutions . . . Globally

Third Party Contributors

More Apps Buy and Use More Services

More Financial Institutions More Users

The OPEN platform enables 2 way services

Mobile Small

Biz New Online

Banking Mint/PFM Third Party

Financial Services Gateway

Authentication Services

Payment Services

Administration

54 NPS

Intuit Partner Third Parties

Financial Institutions

Now live with millions of users

Mobile as the primary banking channel 1

Solving Financial Needs Conveniently on the Go

. . . to Dramatically Increase Active Users and Engagement

4.8 Star Rating

Mobile 1st and only access Remote deposit adoption Rewards on the go Small Business Payments

1

2

3

4

5

Expected growth in average revenue/mobile customer ~50% in FY’13

123

2 Mint: THE platform to improve financial lives

Help Every Consumer Save Money Through the Power of Mint

Thru 100M+ Digital Households Direct and Thru FI’s

• Direct to consumer innovation

• FI’s as core to digital banking

• 100M domestic digital bankers

• ~500M global digital bankers*

• Network Effect Platform

Expected growth in active users 200% over 3 years

*Source: comScore

124

2 Mint: The platform to improve financial lives

Solve Problems Where Small Businesses Already Go. . .

And Where the Demand is High from Financial Institutions

• SMB’s = 10X revenue for FI’s

• Solve key small business jobs

- Banking and financial mgmt.

- Commingled finances

- Taxes

- Access to credit

Capturing the ~20M small businesses who already bank digitally

3 Payments Portal: simplifying the experience

Unified Payments Portal to Simplify the User Experience

Driving Higher NPS, Engagement and Usage

• Common jobs quick and easy

• Consistent experience

• Reduce risk and speed payments

• Solve for the long tail of paper

Net Promoter Score +12pts, 13% increase in new payees

Wires Receivables

International Payments

Person-to-Person

Automated Clearing House

Bill Payment

Inter/ Intrabank Transfers

Data: Turning engagement into cross-sells

Analytics

Social

3rd party

OLB/ Mobile

Intuit

Delivery

App

E-mail

OLB/ Mobile

SMS

Increase sources of

data…

personalize experiences

and…

make them available

to…

…any channel

Decision engine

Increased response rates by 25%

4

Rich ecosystem of untapped data Delivering higher financial

institution cross sell results

• Anticipate my needs

• Do it for me

• Provide a seamless experience

Competitive position continues to strengthen

Source: Celent (Oliver Wyman), 2009

2009 Marketscape:

Retail Online Banking Vendor Assessment

Metavante

Fidelity (FIS)

Sybase Financial Fusion

Fiserv: ITI

Harland

Online Resources

Fiserv: CheckFree

S1 Enterprise

Open Solutions

S1 Postilion

Q2 Software

Breath

of

Fu

ncti

on

ality

Advanced Technology

Current Marketscape:

Retail Online Banking Vendor Assessment

Source: IDC-Financial Insights, 2012

Leaders

Major Players

Contenders

Participants

(+) Intuit

(+) Q2ebanking

(+) FIS_CeB

(+) Fiserv_ Corillian Online

(=) ORCC

(=) FIS_OLB

(=) ACl_Large Financial

(=) Harland Financial Solutions

(=) Jack Henry & Associates

(=) Fiserv_ Retail Online

(=) ACl_Community

Financial

Cap

ab

ilit

ies

Strategies

New sales bookings increased 230%

FY’13 Objectives

• Growth accelerating from FY’12

• ~ 6% in core, ~50% mobile,~20% direct

• 10-14% of revenue from new services

• ~6% overall in the FI channel

Expand Services

Increase Users

Revenue

Increase Rev/User

Customer Benefit

• Save SMB’s and consumers time & money

• Increase FI profit per customer 12%

FY’13 Revenue Growth Guidance: 6% to 9%

Financial Update Neil Williams, CFO

Revenue Growth

Margin Expansion

Capital Allocation

Revenue Growth

Margin Expansion

Capital Allocation

We are striving for one True North outcome for Intuit (best we can be)

• Grow organic revenue double digits

• Grow revenue faster than expenses

• Deploy cash to highest-yield opportunities

• Maintain a strong balance sheet

Financial Principles

Applying the Principles to FY’13

• Grow organic revenue double digits – Rely on strong customer growth, not price

– Capitalize on retention, attach and penetration

– Increased contribution from adjacencies


Drive Growth In Our Core Products

Acquire New Users Retain Existing Users Increase Offerings/User

$1 Billion+ Opportunity

10M+ customers leave Intuit annually

Average 1.5 apps/user with low awareness

1st use experiences not as easy as expected

For every 100 we attract…

Between 2-14 convert!

Improve Conversion 50% = up to $1 Billion

Save 1 out of 10 = $75+ Million

Increase 0.5 apps/user = $500 Million

Customers

Price/Mix

Inorganic

FY’13 Revenue Growth Drivers

FY’13 Revenue Guidance: $4,550M-$4,650M

Customer growth drives 2/3 of revenue increase

65%

27%

8%

Growth Drivers for the Next Few Years

• Ongoing shift to connected services …

from 64% mix in FY’12 to 75%

• Decelerating desktop revenue …

from 36% mix in FY’12 to 25%

• QuickBooks Online growing +30% ...

contributes to growth in SBG and Global

• Payments revenue grows 15-20%

The CFO’s View on FY’12

Margin Expansion

Shareholder Reaction

• Grow revenue faster than expenses – Expanding margin +50-100 bps annually on an organic basis

– Managing expenses accordingly if revenue results vary from expectations

– Allocations to highest growth initiatives



– Probability of success . . . strong say/do ratio

– Solving for challenges at 2X, while assuming >50% probability of success


Portfolio Reallocation in FY’13

• Payments initiatives

• First-use experience

• Global, mobile, social, big data

• Upgrades to infrastructure

Examples of tradeoffs and redeployment to higher-growth areas

Allocations To

• Websites, Personal Finance, etc.

• Hosting/technology savings

• Staffing realignment

• Corporate banking

Allocations From

FY'10 FY'11 FY'12 FY‘13 Long-Term Expectations

Revenue 100 100 100 Double digit organic growth, supplemented by acquisitions

Gross Margin 82.9 83.3 82.2 % Increasing slightly with move to SaaS

S&M 25.6 26.4 25.5 % Flat to down as revenue increases

R&D 15.4 15.1 14.9 Target 15-17% of revenue

G&A 8.7 8.0 8.0 % Declines over time

Operating Income 33.2 33.8 33.8 Improve to mid 30’s

Net Income 20.8 21.6 21.8 Tax rate in the 35% range; improvements in OIE as interest rates increase

EPS Grow faster than operating income

Intuit Financial Model % of Revenue

Revenue Growth

Margin Expansion

Capital Allocation

• Deploy cash to highest-yield opportunities – ROI hurdle of +15%

– Internal opportunities for growth

– Acquisitions and partnerships

– Return to shareholders…share repurchase and dividends

• Grow revenue faster than expenses – Expanding margin +60 bps over FY’12 on an organic basis

– Managing expenses accordingly if revenue results vary from expectations

– Functional expenses growing slower than revenue . . . maintaining % of revenue



– Probability of success . . . strong say/do ratio

– Solving for challenges at 2X, while assuming >50% probability of success


Cash to Highest-Yield Areas in FY’12

~$900M - share repurchase

~$500M - debt retirement

~$450M - acquisitions

~$200M - capital expenditures

~$180M - cash dividends

Capital Allocation Plans for FY’13

• Continue to return cash to shareholders

- Share repurchases of $400M … share count remains flat

- Increase dividend by 13% to $0.68 per share … $0.17 per quarter

- ROIC above 20%

M&A Process Overview

Disciplined, proactive approach to M&A to bolster growth

Strategy and

Target

Internal Approval

Diligence Valuation

and Negotiation

Integration and

Monitoring

5-Year Operating Income CAGR 5-Year EPS CAGR

Strong Return on Investment

Stock Price Performance (%) 5-Year Revenue CAGR

$2,978 $3,073 $3,403 $3,772

$4,151

FY’08 FY’09 FY’10 FY’11 FY’12

+10%

GDP Growth

$858 $941 $1,130

$1,275 $1,404

FY’08 FY’09 FY’10 FY’11 FY’12

+13%

$1.60 $1.85

$2.18 $2.56

$2.97

FY’08 FY’09 FY’10 FY’11 FY’12

+16%

NASDAQ 15%

Intuit 105%

-100%

0%

100%

200%

July 201

2

Aug 2007

FY’13 Segment Plans

SBG $1,865M – $1,900M 15 - 17%

Consumer Tax $1,550M – $1,585M 8 - 10%

Accounting Professionals

$445M - $455M 5 - 8%

Financial Services $385M – $395M 6 - 9%

Other Businesses $305M – $315M 0 - 4%

Growth FY’13

Guidance $ in Millions

FY’13 Guidance

Revenue $4,550M-$4,650M 10-12%

Op Income

• Non-GAAP $1,570M-$1,600M 12-14%

• GAAP $1,315M-$1,345M 12-14%

EPS

• Non-GAAP $3.32-$3.38 12-14%

• GAAP $2.76-$2.82 6-8%

Cap Ex $165M-$185M

Low-High Range

YoY Growth

FY’13 Guidance Range

Tax Business

• Conversion Assumptions

• Late legislation - quarterization

Competition

Regulatory changes

Deceleration of desktop

Economy deteriorates

Executive Summary

• Accelerating revenue growth + margin expansion

• Growing the Consumer Tax category is essential

• Investing in high-growth initiatives

• Maintaining a strong balance sheet

Appendix

TABLE 1: RECONCILIATIONS OF HISTORICAL NON-GAAP FINANCIAL MEASURES TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal

2012 2011 2010 2009 2008 2007

GAAP operating income from continuing operations $1,177 $1,037 $904 $703 $662 $630

Amortization of acquired technology 14 12 43 54 51 29

Amortization of other acquired intangible assets 39 43 42 41 34 20

Charge 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 76

Non-GAAP operating income $1,404 $1,275 $1,130 $941 $858 $755

GAAP net income $792 $634 $574 $447 $477 $440

Amortization of acquired technology 14 12 43 54 51 29

Amortization of other acquired intangible assets 39 43 42 41 34 20

Charge 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 76

Pre-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 $502

GAAP diluted net income per share $2.60 $2.00 $1.77 $1.35 $1.41 $1.24

Non-GAAP diluted net income per share $2.97 $2.56 $2.18 $1.85 $1.60 $1.41

Shares used in diluted per share amounts 305 317 325 330 339 356

Non-GAAP tax rate 34% 34% 35% 33% 36% 36%

See "About Non-GAAP Financial Measures" immediately preceding Table 1 for 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.

(Dollars in millions, except per share amounts)

TABLE 2: RECONCILIATION OF SELECTED NON-GAAP FINANCIAL MEASURES TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

Non- Non- Non-

GAAP GAAP % GAAP GAAP % GAAP GAAP %

Fiscal Fiscal of Fiscal Fiscal of Fiscal Fiscal of

2010 Adjmts 2010 Rev 2011 Adjmts 2011 Rev 2012 Adjmts 2012 Rev

Total revenue $3,403 $- $3,403 100.0% $3,772 $- $3,772 100.0% $4,151 $- $4,151 100.0%

Cost of revenue:

Cost of product revenue $144 $(1) [a] $143 $143 $(1) [a] $142 $145 $(1) [a] $144

Cost of service and other revenue 447 (7) [a] 440 495 (6) [a] 489 601 (6) [a] 595

Amortization of acquired technology 43 (43) [b] - 12 (12) [b] - 14 (14) [b] -

Total cost of revenue $634 $(51) $583 17.1% $650 $(19) $631 16.7% $760 $(21) $739 17.8%

Operating expenses:

Selling and marketing $913 $(41) [a] $872 25.6% $1,040 $(46) [a] $994 26.4% $1,118 $(60) [a] $1,058 25.5%

Research and development 564 (41) [a] 523 15.4% 620 (51) [a] 569 15.1% 669 (52) [a] 617 14.9%

General and administrative 346 (51) [a][c] 295 8.7% 352 (49) [a] 303 8.0% 388 (55) [a][c] 333 8.0%

Amortization of other acquired intangible assets 42 (42) [b] - 43 (43) [b] - 39 (39) [b] -

Goodwill and intangible asset impairment charge - - - 30 (30) [d] - - - -

Total operating expenses $1,865 $(175) $1,690 $2,085 $(219) $1,866 $2,214 $(206) $2,008

Operating income $904 $226 $1,130 33.2% $1,037 $238 $1,275 33.8% $1,177 $227 $1,404 33.8%

Net income $574 $134 [e] $708 20.8% $634 $179 [e] $813 21.6% $792 $114 [e] $906 21.8%

[a] Adjustments to exclude share-based compensation expense from non-GAAP financial measures.

[b] Adjustments to exclude amortization of acquired technology and amortization of other acquired intangible assets from non-GAAP financial measures.

[c] Adjustment to exclude professional fees for business combinations of approximately $7 million from non-GAAP financial measures in fiscal 2010 and approximately $5 million from non-GAAP financial measures in fiscal 2012.

[d] Adjustment to exclude goodwill and intangible asset impairment charges from non-GAAP financial measures.

[e] Adjustment to exclude the effects of adjustments [a] through [d], the related income tax effects, and certain discrete income tax effects from non-GAAP financial measures.

See "About Non-GAAP Financial Measures" immediately preceding Table 1 for 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.

(Dollars in millions)

TABLE 3: RECONCILIATIONS OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME AND EPS

Forward-Looking Guidance

GAAP Non-GAAP

Range of Estimate Range of Estimate

From To Adjustmen

ts From To

Twelve Months Ending

July 31, 2013

Revenue $4,550 $4,650 $- $4,550 $4,650

Operating income $1,315 $1,345 $255 [a] $1,570 $1,600

Diluted earnings per share $2.76 $2.82 $0.56 [b] $3.32 $3.38

[a] Reflects estimated adjustments for share-based compensation expense of approximately $208 million, amortization of acquired

technology of approximately $19 million, and amortization of other acquired intangible assets of approximately $28 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 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.

(Dollars in millions, except per share amounts)

TABLE 4: CALCULATION OF FREE CASH FLOW

TABLE 4

INTUIT INC.

CALCULATION OF FREE CASH FLOW

(Dollars in millions)

Fiscal 2012

Net cash provided by operating activities $1,246

Less capital expenditures:

Purchases of property and equipment (135)

Capitalization of internal use software (51)

Total capital expenditures (186)

Free cash flow $1,060

To supplement our statements of cash flows prepared in accordance with GAAP, we use free cash

flow to analyze cash flow generated from operations. We define free cash flow as net cash provided

by operating activities less total capital expenditures. This non-GAAP financial measure should

not be considered as a substitute for, or superior to, GAAP net income as an indicator of our

operating performance or GAAP cash flows from operating activities as a measure of our liquidity.

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, customer and share growth; our opportunities and strategies to grow our business; our expected revenue, operating

income and earnings per share results and growth; our expectations regarding future dividends and ROIC improvements; our expectations for our product and service

offerings and cross-sell opportunities; 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: inherent difficulty in predicting consumer behavior; difficulties in receiving, processing, or filing customer tax submissions; consumers may

not respond as we expected to our advertising and promotional activities; 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 or public policy

affecting the preparation and filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully innovate and

introduce new offerings and business models 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; business interruption or

failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and

harm our future financial results; as we upgrade and consolidate our customer facing applications and supporting information technology infrastructure, any problems

with these implementations could interfere with our ability to deliver our offerings; any failure to properly use and protect personal customer information and data

could harm our revenue, earnings and reputation; if we are unable to develop, manage and maintain critical third party business relationships, our business may be

adversely affected; increased government regulation of our businesses may harm our operating results; if we fail to process transactions effectively or fail to

adequately protect against potential fraudulent activities, our revenue and earnings may be harmed; any significant offering quality problems or delays in our

offerings could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of

our traditional paid franchise; the continuing global economic downturn may continue to impact consumer and small business spending, financial institutions and tax

filings, which could negatively affect our revenue and profitability; our businesses 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; our financial position may not make repurchasing shares or declaring dividends

advisable; our inability to adequately protect our intellectual property rights may weaken our competitive position and reduce our revenue and earnings; our

acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the

transactions; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operation; and litigation

involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our

business 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 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.

Cautions About Forward-Looking Statements

INTUIT INC. ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying presentation dated September 18, 2012 contains non-GAAP financial measures. Table 1, Table 2, Table 3 and Table 4 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), non-GAAP net income (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 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 compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whether other 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 combinations We 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

About Non-GAAP Financial Measures

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 planning and forecasting and when assessing the performance of the organization, our individual operating segments, or our senior management. Segment managers 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 segment performance. 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 for past 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 equity awards, 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 the entity 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. Amortization of 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 to their 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 securities and 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 effects related 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-GAAP financial 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 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. The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in Table 3 include all information reasonably available to Intuit at the date of this press release. 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 available-for-sale debt securities and other investments.

About Non-GAAP Financial Measures (cont)