Hilan Ltd. · TASE:HLAN
Hilan — Q1 2021 Earnings Presentation
18 slides from Hilan's earnings presentation, May 2021
Slide 1: Hilan Group Capital Market Presentation May 2021
Slide 2: Clarification
Clarification C+) HILAN|7'9 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: About Hilan
About Hilan A leading technology services group Over 5,000 customers Approximately 4,000 employees in the Group Years of sustained organic growth beside mergers and acquisitions Two decades of consistent growth in revenues and profitability AA- rating: stable horizon Ma‘alot (S&P) @ Payroll and huma
Slide 4: Q1 2021 Data At A Glance
Q1 2021 Data At A Glance (Nis million) © ditani7n “@_] Revenues (@) Operating [27 income Operating income 2) percentage Ge 11.8%
Slide 5: Net Income and Operating Income
Vet INCOME (NIS million) £ HILAN| SN SERA AAG 27.6 276 2017 2018 2019 2020 2021 Net profit Operating income
Slide 6: Highlights for report period and afterward
Highlights for report period and afterward lef Growth of approximately 12.6% in operating profit in Q, 2021 Coped well with the COVID-19 Pandemic and its implications ill Growth of approximately 6.8% in net profit in Qi, 2021 >) Hybrid work Endorsement of hybrid work and streamlining processes © dia
Slide 7: Sectors of activity
Sectors of activity 1 1 (3 I ey 1 Payroll I and human I resources services ! I 1 IT 1 Infrastructures Business process management services in BPO mode Professional service center in ASP mode Solutions for local software on customer premises Payroll Management services T&A Management Human Resources
Slide 8: Distribution of operating income by activity sector
Distribution of operating income by activity sector C+) HILANI7'N 590, 55% 2b6Y, PLY, (3) Payroll and human 0 as Payroll and human 0 2 i : @ resources services resources services & Business Business BS solutions rs solutions Total operating Total operating income i income 44.4 milton ° NIS million 8
Slide 9: Payroll and Human Resources Services Sector
@ Payroll and Human Resources Services Sector (results in NIS million) © HILAN|7IN 5 ® ® a ® Operating 0 i Operating i perating Operating Revenues income income Revenues income income percentage percentage 86.7 29.2 33.7% 84.7 24.9 29.4% (294%. {Same } ‘quarter Continued growth Reduction in cost of
Slide 10: Payroll and human resources services sector
@® Payroll and human resources services sector Revenues of approximately 13.4 Nis mittion For Qu, 2021 (approximately 13.1 NIS million quarter on quarter) allo Continued trend of new customers recruited despite the COVID-19 Pandemic rs Over 1,500 Customers © @ Extensive experience in the Payroll and
Slide 11: Business Solutions Sector
n&Business Solutions Sector (results in NIS million) ya 2 ® o Operating 0 i perating Revenues income i acome Revenues percentage 241.9 13.2 5.5% 237.9 Same } warty Revenue and profit growth despite ; . reduction in workdays due to the i ponies owt J timing of the Passover holidays cae quarter on qua
Slide 12: Computing Infrastructures Sector
¢@ Computing Infrastructures Sector (results in NIS million) © HILAN|7IN Oo > Revenues Operating income 46.2 4.4 oo (Growth; Growth in demand for C information security and cyber solutions & Eas @ a ® @ Operating Operatin Operating income Revenues p 9 income percentage income percentage 9.5% 41.3 3.
Slide 13: Software products marketing sector
& Software products marketing sector (results in NIS million) @. ® @) @. Operating Operatin Revenues ‘ncome ireomen Revenues percentage 51.0 3.7 7.2% 50.5 ion ini : : i ion of r Erosion in income and operating Continued allocation of resources income due to Shekel ®- based soluti 4 transition t appr
Slide 14: Main data from the profit and loss statement 2020 vs 2021
Main data from the profit and loss statement 2020 Vs 2021 (NIS million) © HILAN|7'N Revenues 424.2 412.7 2.8% Gross profit 99.9 99.1 0.7% Sales and G&A expenses 49.9 54.7 (8.9%) Operating income 50.0 44.4 12.6% Financing expenses, net 3.8 1.4 164.1% Earnings before tax 46.2 43.0 1.4% Taxes on revenu
Slide 15: | Nettnana det
2020 2021 2019 2020 © 2021 2019 20202021 2020 © 2021 | Nettnana det bal 2019 2020 2021 bolas 2019 2020-2021
Slide 16: Holdings structure
Holdings structure © ditani7n | @ = se (oF Hilan Israel deiongon wien Groy seiO 8 DDANEL s Optibit 8 moo (7 OMEN 3 oe z ©D tiv usa 8 SALTO ES Payday 3 @ey z KQQUWW ww Ww 9 lik @ | el. E a e WA stares (insane * The percentages in this slide reflect Hilan’s percentage holding in the respective compani
Slide 17: Business diversification and growth
Business diversification and growth OQ uani7n Diverse business areas Low financial leveraging High-quality human capital Operating profit Mergers & acquisitions vA N growing continually Business and strategic focus on the core “\. businesses Group business organic growth Development and entry into ~
Slide 18: Hilan Group - Thank you
Hilan Group Thank you