We Are A Stronger Company Today

Talent

Culture

Digital & Data Platforms

Well-known and highly

trusted brand

Over half of VPs and

Focused on solving

Our IT investments are

Net promoter score,

45% of directors are

problems for

yielding a better customer

intent to return, and

new or have been

consumers and small

experience, faster

value for price paid all

promoted to a new role

businesses, with a "test

product development and

improved year over year

in the last few years

and learn" philosophy

greater innovation

Better consumer

tax results

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

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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