Slide 1: Hilan Group Capital Market Presentation May 2019
Hilan Group Capital Market Presentatione May 2019
Slide 2: Forward-looking information
Forward- looking information The presentation includes the Company's forecasts, estimates and plans regarding its activities, which constitute forward-looking information as defined in the Securities Law, 5728-1968, the realization of which are not certain and which may be influenced by factors that
Slide 3: Profile
4 ty © A leading . technology Profile services group More than a decade of growth in all the operational parameters Specializing in management of the human resource and business solutions a 20.0% average growth in net profit in Q1 over the past 5 years
Slide 4: General data Q1 2019
' 11.3% revenue 18.0% growth General data growth in operating Q1 2019 income Over 3,900 Since the beginning of the Employed year, a dividend of 22.5 NIS million has been declared (1 NIS per share)* *A dividend of NIS 1 per share (NIS 22.5 million) was declared in Qi 2019 and paid out in April 2019
Slide 5: Results for quarter ended March 31, 2019
Results for qua rter (NIS million) ended March 31,2019 ©O © N CI (NIS million) Revenues 399 NIS million Growth @ Revenues 358 NIS million Growth Operating income 44.9 NIS million Growth 38.0 NIS million Growth Operating income percentage 11.2% Qi 2018 10.6% Operating income percentage 10.6% EBITDA 6
Slide 6: Growth in operating income and net profit
© Growth In operating income and net profit Qi NIS million 2015 2016 ~@ Operating income 2017 -@ Net profit 2018 2019
Slide 7: Sectors of activity
© Sectors of activity Payroll and i BE Microsot Ali HE rscoson Marketing of human | documentum Ca. software resources © HILAN|7'N tectnoleges opentext? Goma’ products services J Business WA solutions @
Slide 8: Operating income distribution
© Operating income distribution Sectors of activity Qi 2019 26% Business solutions , os / Jotal operating, income ‘ 50% P lLand 74, human resources \NIS million . IT Infrastructures - 17% Marketing Software products
Slide 9: Human resources and payroll services sector
© Human resources and payroll services sector (11 2019 (NIS million) Revenues 67.6 NIS million Growth S Operating income 22.9 NIS million Growth i) Operating income percentage 33.9% Highlights ¢ New customers recruited «Expansion of value- added services to existing and new customers
Slide 10: Revenue growth in HR and payroll services sector
© Revenue growth In HR and payroll services sector Qi NIS million 2015 2016 2017 2018 2019
Slide 11: Business solutions sector
© Business solutions sector (11 2019 (NIS million) Revenues 232.9 NIS million Growth 10.6% Operating income 11.6 NIS million Growth S Operating income percentage 5.0% Highlights * Growth in business activity with a focus on expanding activities into other sectors
Slide 12: Revenue growth Business solutions sector
© Revenue growth Business solutions sector Qi NIS million 232.9 2015 * * Reclassification 2016 * 2017 * 2018 * 2019 13
Slide 13: IT infrastructures sector
IT infrastructures sector (NIS million) Revenues 48.1 NIS million Unchanged Operating income 3.3 NIS million Growth 38.1% Operating income percentage 6.9% Highlights * Focus on business activity and improved profit margins
Slide 14: Software products marketing sector
© Software products marketing sector (11 2019 (NIS million) Revenues 51.9 NIS million Growth S Operating income 7.6 NIS million Growth 68.2% Operating income percentage 14.6% Highlights ¢ Expanding business activity and consolidation of ITway for the first time
Slide 15: Main data from the profit and loss statement Q1
© Main data from the profit and loss statement Q1 NIS thousands Revenues Gross profit Gross profit margins Operating income Operating income percentage Net profit Net profit margin EBITDA 399,040 89,548 22.4% 44.865 11.2% 32,666 8.2% 62,365 358,456 78,077 21.8% 38,031 10.6% 27,632 7.7h 42,996 18.0%
Slide 16: Impact of first implementation of the IFRS lease standard
© Impact of first implementation of the IFRS 16 lease standard — main data Right-of-use assets Lease liability Operating income Financing expenses Net profit EBITDA Cash flow generated by operating activities Cash flow generated by financing activities 120,305 (122,316) 44,865 (1,645) 32,666 62,365
Slide 17: Selected financial data Q1 2019
ns a 29,457 330,546 174,173 Selected oo fi . [ data Cash flow used in Shareholders: equity Net financial debt Inancla operating activities Qi 2019 NIS thousands e ‘ots! 56,504 1,314,452 Cash and cash Total assets equivalents
Slide 18: Summary
© Summary Q1 results reflect Hilan‘s growing business activities, including growth and increase in operating income and net profit across all sectors of activity
Slide 19: Thank you
Hilan Group Thank you