H&R Block Tax Services. Consumer Financial Services. New reporting segment for FY07 Offers H&R Block branded financial services

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Cory Boone
6 years ago
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1 Introduction H&R Block Tax Services Consumer Financial Services RSM McGladrey Financial Review Operational Overview New reporting segment for FY07 Offers H&R Block branded financial services Investment services (H&R Block Financial Advisors) Mortgage services (H&R Block Mortgage Corporation) Banking services (H&R Block Bank) Focused on increasing client loyalty and retention through deeper relationships tied to client relationship January 9,

Financial Advisors to create strategic impact for H&R Block Build advisor scale to

2 Introduction H&R Block Tax Services Consumer Financial Services RSM McGladrey Financial Review H&R Block Financial Advisors: Strategic Focus Key Strategies Align Financial Advisors to create strategic impact for H&R Block Build advisor scale to serve our client opportunity Build out competitively advantaged business models January 9,

consultative advisors who fit our culture Drive productivity increases through products, activity, management and integration actions

3 Align With H&R Block Integration of client acquisition focus on upper-end tax clients Tax and financial advice as unique service to clients Tax Professional teaming to serve client needs and drive integration Flexible deposit source for H&R Block Bank Build Advisor Scale Recruit consultative advisors who fit our culture Drive productivity increases through products, activity, management and integration actions Expand Professional Edge early career model Disciplined competitive recruitment structures that meet H&R Block return hurdles January 9,

Advantaged Business Models Tax client opportunity alignment

reach, drive retention Advisory-based, straightforward

smaller accounts Introduction H&R Block Tax Services

4 Advantaged Business Models Tax client opportunity alignment Select Client Group call center operation to broaden client reach, drive retention Advisory-based, straightforward product mix Additive to Financial Advisor relationships for smaller accounts Introduction H&R Block Tax Services Consumer Financial Services RSM McGladrey Financial Review January 9,

H&R Block Mortgage Corporation: Strategic Focus

business to refine the client service model

Professionals and their clients Adjust to market

efficiency Leveraging the client base Provide

client interactions self service, chat, call

5 H&R Block Mortgage Corporation: Strategic Focus Key Strategies Key Strategies Redefine the business to refine the client service model Offer unique value propositions tailored to Tax Professionals and their clients Adjust to market environment Focus on capacity Improved operating efficiency Leveraging the client base Provide bank with high-quality, low-cost assets Varied client interactions self service, chat, call center Redefining the Business Yields Aligned Model January 9,

Introduction H&R Block Tax Services Consumer

Block Bank: Strategic Focus Key Strategies Achieve

enterprise assets Develop unique products that meet

6 Introduction H&R Block Tax Services Consumer Financial Services RSM McGladrey Financial Review H&R Block Bank: Strategic Focus Key Strategies Achieve size and scale Capture earnings potential of existing enterprise assets Develop unique products that meet tax client needs while enhancing client loyalty January 9,

Achieving Scale Purchase prime-quality loans from Option One, H&R Block Mortgage Corporation and other lenders Increase interest earnings by utilizing low-cost funding sources Position balance sheet

7 Achieving Scale Purchase prime-quality loans from Option One, H&R Block Mortgage Corporation and other lenders Increase interest earnings by utilizing low-cost funding sources Position balance sheet for short-term rate changes Optimize cost efficiency of corporate structure Growing H&R Block BankÊs Assets $1,946 $1,435 $567 $762 ($ millions) 1Q07 2Q07 FY07 FY08 Projected Net Loans Investments Other January 9,

Capturing Untapped Earnings Hold H&R Block Financial AdvisorsÊ unrestricted funds Collaborate with H&R Block entities to offer uniquely tailored

platform to: Promote specialized banking capability to the underbanked, supporting Tax Professional and client demand Provide industry leading Easy

8 Capturing Untapped Earnings Hold H&R Block Financial AdvisorsÊ unrestricted funds Collaborate with H&R Block entities to offer uniquely tailored products Utilize banking platform to enhance client offers and generate incremental revenue Unique Client Centric Products Utilize efficient banking platform to: Promote specialized banking capability to the underbanked, supporting Tax Professional and client demand Provide industry leading Easy Savings and Easy IRA Encourage unbanked use of payroll direct deposit Emerald card as account platform for deeper client relationships January 9,

Industry Context. H&R Block Investment Community Conference. January 9, Market shift to professionally supported tax preparation

Industry Context. H&R Block Investment Community Conference. January 9, Market shift to professionally supported tax preparation Introduction H&R Block Tax Services Consumer Financial Services RSM McGladrey Financial Review Industry Context Market shift to professionally supported tax preparation Paid prep channels taking share