Cautions on Forward Looking Statements

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Cautions on Forward Looking Statements
This presentation contains forward-looking
statements, including our expected market and
growth opportunities strategies to grow our
business in the future and our long-term
financial objectives. Because these forward
looking statements involve risks and
uncertainties, there are important factors that
could cause our actual results to differ
materially from those in the forward looking
statements. These factors include, without
limitation the effects of competition
governmental encroachment in our tax businesses
uncertain market acceptance of new products and
services the cost of developing new products and
services our potential inability to maintain
reliable and responsive service levels and
material changes in economic conditions
generally. More details about these and other
risks that may impact our business are included
in our most recent report on Form 10-K and other
SEC filings, which are available through our
website at www.intuit.com/about_intuit/investors.
The forward looking statements in this
presentation reflect managements beliefs based
on information currently available to us and
speak solely as of the date of this presentation.
Intuit does not undertake any duty to update any
forward looking statement or other information in
this presentation.
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Intuits Strategy for Growth
Be in growth businesses, high profit businesses,
and attractive new markets with large unmet /
underserved needs we can solve well
Self Directed DIY Customers
Self Directed DIY With Assistance Customers
Cant Be Bothered Customers
Intuits Core Competency Customer-Driven
Innovation that solves important customer
problems simply, at better value, and creates
wow Applied 2 ways Existing solutions
Continuous improvement delivering end-to-end
customer wow experiences New solutions New
offerings that convert non-consumption or
disrupt higher priced alternatives
To build large user bases and durable advantage
that translates into sustained revenue and
profit growth
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Small Business Market
Market Overview
SMBs by Accounting Method

• Estimated 26M small-medium businesses (SMBs) in
  the US
• 21M Home and My Business
• 4M Main Street
• lt1M Mid-Market
• 6M new businesses formed each year (net
  0.3-0.5M)

Source Intuit estimates
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Consumer Tax Prep Market
Market Overview
Returns by Prep Method

• 135M individual federal tax returns filed
  annually in the US
• 1 average annual growth in returns filed
• Estimated 5M new filers enter market, 3.5M leave
  each year

Source Intuit estimates
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Consumer Tax Prep Market Trends
Tax Returns Filed
Source IRS data and Intuit estimates
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Predictable or Recurring Revenue

• Subscriptions
• Payroll
• Payments
• QuickBooks Online
• QuickBooks subscriptions

Other Revenue

• Tax Renewals
• Consumer Tax
• Professional Tax

Predictable or Recurring Revenue

• Upgrades Consumables
• QuickBooks
• Quicken
• Financial Supplies

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Revenue Growth, with Margin Leverage
Non-GAAP Operating Margin ()
Revenue (B) (CAGR 17)
Margin
Revenue
See attached reconciliation of Non-GAAP measures
to GAAP.
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Consistent Cash Generation
Cash Flow from Operations
Through Q306, Intuit has returned over 3.2
billion in cash to shareholders by repurchasing
over 70 million shares
Note Excludes discontinued operations.
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Summary

• We operate in large markets with significant
  unmet or underserved needs
• We apply Customer Driven Innovation to develop
  easy to use solutions that convert
  non-consumption and/or disrupt higher-priced
  alternatives, building large user bases in the
  process
• 60 of small and medium businesses in the US
  dont use any specialized accounting software
  today
• 76 of US tax filers dont use software to
  prepare their taxes today, and its the fastest
  growing of all tax prep methods
• Our business model is financially robust,
  delivering sustained revenue growth, margin
  leverage, and cash generation

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About Non-GAAP Financial Measures
Table 1 reconciles the non-GAAP financial
measures found in the accompanying document
entitled Intuit Company Overview 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 and
related operating margin as a percentage of
revenue. 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 Intuits
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. 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 the
non-GAAP financial measures in Table
1 Share-based compensation expenses. Our
non-GAAP financial measures exclude share-based
compensation expenses, which consist of expenses
for stock options and purchases of common stock
under our Employee Stock Purchase Plan, which we
began recording under SFAS 123(R) in the first
quarter of fiscal 2006, and expenses for
restricted stock and restricted stock units,
which we recorded under GAAP accounting rules for
all periods presented. We exclude share-based
compensation expenses from our non-GAAP financial
measures for the 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 and
acquisition-related charges in operating expenses
includes amortization of other purchased
intangible assets such as customer lists and
covenants not to compete. We exclude these items
from our non-GAAP financial measures for the
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. The following describes each non-GAAP
financial measure in Table 1, 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. Operating income
and related operating margin as a percentage of
revenue. We exclude share based compensation
expenses, amortization of purchased intangible
assets and acquisition-related charges from our
GAAP operating income from continuing operations
and related operating margin in arriving at our
non-GAAP operating income and related operating
margin 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, and the
exclusion of these expenses 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 and operating margin 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 refer to these
non-GAAP financial measures in assessing the
performance of Intuits ongoing operations and
for planning and forecasting in future periods.
These non-GAAP financial measures also facilitate
our internal comparisons to Intuits 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.
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Table 1 Non-GAAP to GAAP Reconciliation
a Reflects adjustments to exclude amortization
of purchased intangible assets of 5.3 million
and acquisition-related charges of 84.6
million. b Reflects adjustments to exclude
amortization of purchased intangible assets of
7.0 million, acquisition-related charges of
150.2 million, a charge for purchased research
and development of 1.3 million and share-based
compensation expense for restricted stock and
restricted stock units of 1.3 million. c Reflec
ts adjustments to exclude amortization of
purchased intangible assets of 14.9 million,
acquisition-related charges of 247.8 million, a
charge for purchased research and development of
0.2 million and share-based compensation expense
for restricted stock and restricted stock units
of 2.5 million. d Reflects adjustments to
exclude amortization of purchased intangible
assets of 7.1 million, acquisition-related
charges of 159.3 million, a loss on impairment
of goodwill and purchased intangible assets of
27.3 million, a charge for purchased research
and development of 2.2 million, share-based
compensation expense for restricted stock and
restricted stock units of 2.5 million and a loss
on impairment of long-lived asset of 27.0
million. e Reflects adjustments to exclude
amortization of purchased intangible assets of
11.4 million, acquisition-related charges of
33.8 million and share-based compensation
expense for restricted stock and restricted stock
units of 2.7 million. f Reflects adjustments
to exclude amortization of purchased intangible
assets of 10.2 million, acquisition-related
charges of 23.4 million and share-based
compensation expense for restricted stock and
restricted stock units of 6.2 million. g Reflec
ts adjustments to exclude amortization of
purchased intangible assets of 10.3 million,
acquisition-related charges of 16.5 million and
share-based compensation expense for restricted
stock and restricted stock units of 5.5 million.