Slide 1: FY19 Result Presentation
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: About Hansen
ABOUT HANSEN. OUR COMPANY SOFTWARE INDUSTRY VERTICALS = Founded 1971 = Customer acquisition & = Utilities - energy & water = Headquartered in Melbourne, fulfillment = Communications - Telcos & Australia = Data management Pay-TV = ASX listed (HSN) = Billing & customer care TEAM CUSTOMER BASE SHAREHOL
Slide 4: What We Do
WHAT WE DO. Our systems manage customer interactions and aggregate and convert usage data into bills CUSTOMER @g3! ACQUISITION & FULFILLMENT BILLING & DAE CUSTOMER MANAGEMENT ating and ge data Helping our customers to create, sell and deliver new products and services Providing flexibility to suppor
Slide 5: FY19 Financial Dashboard
FY19 FINANCIAL DASHBOARD. Results in-line with guidance RWNS REVENUE! UNDERLYING EBITDA2 UNDERLYING NPATA? $231.3m $55.8m $33.7m $0.5m (0.2%) up overall $4.2m (6.9%) down $5.0m (12.8%) down $4.5m (1.9%) lower ex-Sigma Revenue ex-Sigma was 1.9% lower, which is in-line with guidance of “slightly below
Slide 6: Year Track Record of Growth
5 YEAR TRACK RECORD OF GROWTH. REVENUE! ($M) Underlying EBITDA? ($M) Underlying NPATA? ($M) CAGR 21% CAGR 16% CAGR 15% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 1. FY19 revenue is in accordance with the new accounting standard for revenue recognition, AASB 15. The co
Slide 7: FY19 Financials by Comparison
FY19 FINANCIALS BY COMPARISON. ADJUSTED EPS¢4 (Cents) DPS5 (Cents) GROSS DEBT ($M) FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17* FY18 FY19 FY19* 4. Adjusted Basic EPS is based on Underlying NPATA * Proforma gross debt post the draw down of 5. FY16 and FY18 final dividends include
Slide 8: FY19 Operational Highlights
FY19 OPERATIONAL HIGHLIGHTS. SIGMA Major contract win to deliver our second billing system in Finland - following the Go-Live of the first system earlier in the year for one of the largest energy companies in the Nordics Major contract win to deliver the next generation Meter Data Management (MDM) s
Slide 9: Revenue Split
REVENUE SPLIT. Sigma acquisition rebalances the portfolio both by vertical and geographically REVENUE BY VERTICAL REVENUE BY GEOGRAPHY Other 2% Communicati Utilities 471% 50% EMEA 50% Based on proforma FY19 revenue as if Sigma owned for all of FY19 APAC 19% Americas 31%
Slide 10: Revenue Bridge FY18 to FY19
REVENUE BRIDGE FY18 TO FY19. Lower revenue from US call centre (following termination by us of an underperforming contract) more than offset rise in data centre revenue 250 5.0 —— a $m 230.8 (3.9) . (0.6) 200 One month While recurring (Jun 19) 150 revenues increased, revenue lower non-recurring cont
Slide 11: Recurring/Non-Recurring Revenue Bridge FY18 to FY19
RECURRING/NON-RECURRING REVENUE BRIDGE FY18 TO FY19. Recurring revenues have grown to represent 63% of total revenue in FY19! 250 2.7 5.0 | a 229.0 (5.4) 200 Increased maintenance and One month support fees Cun 19) 150 pacreased one-off contribution icence fees and lower from Sigma project work (fol
Slide 12: EBITDA Bridge: FY18 to FY19
EBITDA BRIDGE: FY18 TO FY19. 60 50 40 30 20 10 Notes: One-off items comprise: $2.1m of transaction costs relating to Sigma acquisition; $0.7m for onerous lease provision for closure of US call centre office; and $0.1m of restructuring costs incurred in Sigma (refer Note 4 to the Financial Statements
Slide 13: EBITDA Margin
EBITDA MARGIN. UNDERLYING! EBITDA MARGIN 26.0% 24.1% 24.6% FY18 Fy19 FY19 Ex-Sigma Notes: 1. Underlying EBITDA margin excludes one-off items from costs Excluding Sigma (which had a modest EBITDA contribution in June), the underlying EBITDA margin declined from 26.0% in FY18 to 24.6% in FY19 This red
Slide 14: FY19 Cash Flow
FY19 CASH FLOW. 6L une ysed Bulsoj> Ss Xd s (dua 40 Ng yeu) puaplaig quewAedas 399d (27.6) uonesunues oy padayep A 9 .S]SOD uolj>esuedL 3 ewbIS n 40} UBWAeg umopmesp 39°90 Aynba 188.4 0.5 xB} 9 3S910]U] mz (8.7) quaudojanap yonpold || 10.9) xedep 4ayjzo 9 /eVIdeD 6Bupyom Free Cash Flow = $30.1m yped
Slide 15: Sigma Acquisition
SIGMA ACQUISITION. The combined offering means we can help more customers address a bigger part of their needs = Founded in 1996, Sigma is a leading global provider of catalog-driven software products for telecommunications, media, and high-tech companies = The software products streamline complex p
Slide 16: Sigma's Products
SIGMA’S PRODUCTS. Empower customers to efficiently create, sell and deliver products to customers CATALOG CONFIGURE PRICE QUOTE ORDER MANAGEMENT PORTFOLIO INVENTORY PROVISIONING INSIGHTS DESCRIPTION Provides a master catalog of an enterprises entire products & services Applies real-time, enterprise-
Slide 17: FY20 Outlook
FY20 OUTLOOK. = Hansen has the people, products, systems & processes and customer partnerships to drive growth in FY20 and beyond = In FY20, we expect operating revenues at around the $305m to $310m level and EBITDA in the range of $70m to $76m = This guidance: — includes a full year contribution fr
Slide 18: Hansen Investment Profile
HANSEN INVESTMENT PROFILE. =~ Our 550+ customers are diversified by industry, geography and currency - with our er ae LONG TERM largest customer only circa 5% of total revenue RELATIONSHIPS = Given the mission critical nature of our software, customer relationships often extend well beyond 10+ years
Slide 19: Appendices
APPENDICES.
Slide 20: FY19 v FY18 Income Statement
FY19 v FY18 A$m FY18 FY19 Variance Operating revenue 230.8 231.3 0.2% Other income 1.8 1.6 Operating expenses (172.7) (177.0) Underlying EBITDA 60.0 55.8 -6.9% Depreciation (3.9) (3.8) Amortisation of R&D (5.1) (6.9) EBITA 51.0 45.1 Amortisation of acquired intangibles 1 (11.4) (12.1) EBIT 39.6 33.1
Slide 21: Adoption of AASB 15 - Revenue from Contracts with Customers
ADOPTION OF AASB 15 - REVENUE FROM CONTRACTS WITH CUSTOMERS = AASB 15 is a new accounting standard for revenue recognition taking effect in FY19. Hansen has chosen to initially apply the standard as an adjustment to the opening balance of retained earnings on 1 July 2018, with comparative figures fo
Slide 22: Constant Currency Revenue Bridge 1H18 to 2H19
CONSTANT CURRENCY REVENUE BRIDGE 1H18 TO 2H19. 120 2h 1 118.4 HS | 8 112.4 112.4 100 80 60 40 20 0 1H18 Billing Other 2H18 ~~ sBilling Other 1H19 Billing Other 2H19 Notes: 1. Movements are on a constant currency basis - currency movements have been calculated whereby 2H18 revenue has been translated
Slide 23: Cash Flow Statement
A$m FY18 1H19 2H19 FY19 Underlying EBITDA 60.0 28.5 27.4 55.8 Working capital/other 1.6 (8.0) 4.8 (3.2) Net interest (2.0) (0.6) (1.4) (2.0) Income tax (6.8) (3.5) (3.2) (6.7) Operating cash flow 52.8 16.3 27.6 43.9 Capex (2.7) (0.9) (2.1) (3.0) Capitalised development costs (10.0) (5.3) (5.6) (10.9
Slide 24: Balance Sheet
A$m Jun 18 Dec 18 Jun 19 Cash 23.2 22.2 38.3 Receivables 37.3 39.2 49.5 Accrued revenue 5.8 8.1 27.8 Prepayments / other 5.0 6.4 7.9 PPE 10.6 9.7 11.0 Intangibles 243.4 241.3 402.8 Deferred tax assets 4.1 4.6 4.6 Other non-current assets 0.4 0.0 3.1 Total Assets 329.8 331.5 545.0 Payables 16.5 14.1
Slide 25: Forecast Amortisation of Acquired Intangibles
FORECAST AMORTISATION OF ACQUIRED INTANGIBLES. Based on acquisitions to 30 June 2019 GROSS AMORTISATION ($M) TAX ($M) AMORTISATION AFTER TAX ($M) FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 Note: 1. The above forecasts are based on asset balances, country tax rates and foreign exchange rates at 30
Slide 26: Thank You
THANK YOU.