Gained share in DIY in three of past four years, with annual customer growth rate of 6.3%; Assisted client satisfaction up 6 points in last two years
Three Strategic Imperatives
Small Business
Expand our base of 2.4 million small business customers by building more direct, valuable relationships via the tailored experiences and services of Block Advisors and Wave
Current H&R Block Market Share
1%
~$60M
Consumer
incremental
in incremental
2x
business tax
revenue
tax returns
Small
market share
business
equates to
tax returns
Financial Products
Evolve the Emerald Card into a consumer-centric,mobile-first solution for the underbanked, leveraging our technology platform and favorable banking relationship
Block Experience
Converge our platform by blending human expertise and care with digital capabilities to make tax prep easier, faster, and more personalized, with our MyBlock app as the centerpiece
8M
~67%
$9B
H&R Block customers
Block customers
Dollars deposited
who are underbanked
likely to open a bank
annually to Emerald
account with Block if
Card
oered
Use of Digital
Customer
Total
Services
Satisfaction
Clients
Customers who
Among customers who
Total returns up more
engaged with a tax pro
engaged with digital
than 5% since 2017
or approved return
tools in Tax Season '20,
due to improvements
online doubled in Tax
'intent to return'
in service and
Season '20
increased as much as
experience
8 percentage points
Five Core Financial Principles Will Drive Shareholder Value
1
Sustainable annual revenue growth of 3 to 6%
Driven by growth in Small Business, Financial Products and Block Experience
FY21 outlook
Revenue:
$3.5-3.6 billion
EBITDA:
$950 million to $1 billion
2
EBITDA and EPS growing at a faster rate than revenue
Tremendous operating leverage in the business given flexible cost structure
At an illustrative 4% revenue growth rate, EBITDA would grow 1.5x faster than revenue and EPS 2.5x faster
3
Redeploying cost savings to highest ROI opportunities
$150 million in cost savings by 2025 to fuel investment for growth:
Footprint optimization
Labor model eiciencies
Technology roadmap
Disciplined expense management
4
5
Maintaining a strong
Continuing to return
balance sheet and
capital via dividends
liquidity position
and buybacks
Maintain
Dividend +30% since
investment-grade
FY16
metrics
~6% current dividend
Adequate access to
yield*
capital through line of
Q2 FY21: $150 million
credit and recent
in share repurchases
debt issuance
19% of shares
Trending below target
adjusted debt ratio of
outstanding
2.5-3x
repurchased between
FY17 and Q2 FY21
*As of Dec. 2, 2020
Attachments
Original document
Permalink
Disclaimer
H&R Block Inc. published this content on 07 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 December 2020 09:22:06 UTC
H&R Block, Inc. is engaged in providing tax preparation services, financial products, and small business solutions. The Company provides assisted and do-it-yourself (DIY) tax return preparation solutions through multiple channels, including in-person, online and mobile applications, virtual, and desktop software and distributes H&R Block-branded services and products. It also offers small business financial solutions through its Company-owned and franchise offices and online through Wave. The Company provides additional services, including Refund Transfers (RT), Peace of Mind Extended Service Plan (POM), H&R Block Emerald Prepaid Mastercard (Emerald Card), H&R Block Emerald Advance Lines of Credit (EA), Tax Identity Shield (TIS), Refund Advances (RA), and small business financial solutions. The RTs enable clients to receive their tax refunds by their chosen method of disbursement and include a feature enabling clients to deduct tax preparation and related fees from their tax refunds.