Slide 1: 1H18 Result Presentation
“=AANSEN TECHNOLOGIES i718 RESULT PRESENTATION 23 FEBRUARY 2018 Leveraging our global experience,
Slide 2: Important notice
Important notice This presentation has been prepared by Hansen Technologies Limited (Hansen). Information contained in this presentation: * is intended to be general background information only, and is not intended that it be relied upon as advice to investors or potential investors and is not an of
Slide 3: 1H18 financial dashboard
1H18 financial dashboard REVENUE EBITDA! NPATA?2 $118.4m $33.8m $22.7m 36% 41% 47% NET DEBT 11.7 cents 3.0 cents $17.2m 37% unchanged s of this reporting period (IH18), net fo ‘change gains (losses) are no longer included within EBITDA and EBIT. The comparative figures have adjusted accordingly. EBI
Slide 4: 1H18 highlights
1H18 highlights Enoro ° Acquisition 28.6% EBITDA Margin . $20.5m . Free Cash Flow Operational Nordic-based Enoro was acquired effective 1 July 2017 for an enterprise value of A$94.7m Integration has progressed well, and the business performed strongly during the half: — operating revenue of $29.1m -
Slide 5: 1H18 revenue split
1H18 revenue split REVENUE BY VERTICAL REVENUE BY GEOGRAPHY - 1H18 Other 2% Pay TV 15% Energy 60% Telcos 16% ~ > 6% With the acquisition of Enoro: * Energy is now 60% of revenue by vertical, compared to 43% in FY17 * EMEA is now 52% of revenue by geography, compared to 41% in FY17 EMEA 52% APAC 23%
Slide 6: Revenue bridge 1H17 to 1H18
Revenue bridge 1H17 to 1H18 " oy OPERATING REVENUE BRIDGE 1H17 TO 1H18 * — Billing revenue excluding Enoro increased $5.4m on a constant currency basis. Allowing for the “annualisation” of HiAffinity in 1H17 (which was $1.1m for 2 29.1 (2.0) (1.0) months), the organic growth was $3.2m or —— 4.0% * E
Slide 7: Expenses and EBITDA margin
Expenses and EBITDA margin 14.7 1H16 OPERATING EXPENSES ($M) 14.8 2H16 @ Employee benefits 100% 80% OPERATING EXPENSES AND EBITDA AS A % OF REVENUE Soe 21.0 60% 40% 42.7 44.7 20% 0% 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 ™ Other expenses mEmployee benefits mOtherexpenses MEBITDA Despite margin dilu
Slide 8: Effective tax rate
Effective tax rate 30% 25% 20% 15% - 10% 5% - 0% 29.4% FY15 * The Group’s effective tax rate declined from FY15 to FY17 largely as a function of: 28.4% 27.2% - Increased research & development allowances (particularly in the US) 23.1% - The net impact of lower tax rates in foreign jurisdictions (tha
Slide 9: Cash flow Jun to Dec Borrowings
Cash flow Jun 17 to Dec 17 140 120 Borrowings A$Sm Opening 30/6/2017 03 Drawdown of ANZ facility 46.4 Acquired with Enoro 29.7 100 Repeyment of Enoro debt (29.7) Repayment of ANZ facility (5.1) Closing 31/12/2017 41.6 80 5.1 60 Free Cash Flow = $20.5m wo 430 “0 63 2.2 — 20 fe) 0 Opening EBITDA Worki
Slide 10: Balance sheet
Balance sheet A$m Cash Receivables Accrued revenue Prepayments / other PPE Intangibles Deferred tax assets Payables Borrowings Current tax Provisions Unearned income Deferred tax liabilities Net Cash (Debt) Dec 16 7.8 21.7 6.1 3.2 79 130.3 49 1 2.3 0.2 11.3 1.8 14.7 Jun17 Dec 17 15.0 24.3 37.7 43.2
Slide 11: Forecast amortisation of acquired intangibles
Forecast amortisation of acquired intangibles Based on acquisitions to 31 December 2017 GROSS AMORTISATION ($M) AMORTISATION AFTER TAX ($M) 12 10 10 8 8 6 6 4 4 i 7 fo) fo) FY15 FY16 FY17 FY18F FYI9F FY20F FY17 FY18F FY1I9F FY20F Note: 1. The above forecasts are based on asset balances, country tax
Slide 12: Hansen long term strategy
Hansen long term strategy Stick to our core business of billing & data management ... and owning our IP Leverage our global experience Target 25-30% EBITDA margins Diversify our customer base across multiple industry verticals, geographies and products Drive organic growth through strategic partners
Slide 13: FY18 Outlook
FY18 Outlook Assuming similar operating conditions to 1H18, including foreign exchange rates: * Operating revenue in 2H18 is expected to be slightly below 1H18 - some of the strong project revenue in 1H18 is not expected to be repeated in 2H18 * the EBITDA margin for 2H18 is anticipated to be within
Slide 14: Lue
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Slide 15: Profit overview
Profit overview A$m 1H17 1H18 Variance Operating revenue 86.9 118.4 A 363% EBA aa 8% Depreciation (1.4) a9) Amortisation of R&D (1.8) (4) ETE 83% Amortisation of acquired intangibles ' (2.6) (69) EBIT 18.1 23.7 Net interest 0.1 (O.9) Net foreign exchange gains (losses) ® (0.1) 06 Profit before tax 1
Slide 16: Cash flow
Cash flow A$m 1H17 2H17 1H18 Working capital/other 24 (8.2) (2.7) Net interest (on (0.0) (0.9) Income tax (4A) (2.9) (3A) Operating cash flow 20.0 11.0 26.8 Capex (2.5) (2.7) (1.5) ies Gash iw costs 3.9) G9) (4.9) Acquisitions (22.8) 0.2 (65.0) Share issues 17 0.2 AI6 Borrowing proceeds (payments) 2
Slide 17: 1H18 currency split
1H18 currency split REVENUE BY CURREN DKK orner 5% > AUD 19% EUR 13% NOK 16% USD 34% GBP 1% mANSEN | 16 ECHNOLOGIES