Hilan Ltd. · TASE:HLAN
Hilan — Investor Presentation (March 2020)
23 slides from Hilan's investor presentation, March 2020
Slide 1: Hilan Group Capital Market Presentation March 2020
Hilan Group Capital Market Presentatione March 2020
Slide 2: 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 cannot be estimated in advan
Slide 3: The spread of the coronavirus
The spread of the coronavirus Preface The implications of the spread of the coronavirus for the Company's busin Inthe estimation of the Company's management and Board, the event invo ess activities \ving the spread of the coronavirus (COVID-19) ("the Coronavirus” and the “Event”, respectively) have
Slide 4: A leading technology services group
4 © A leading technology Profile services group wa A decade of organic growth and expansion through acquisitions r7 24 ‘Oo Specializing in management of the human resource and business solutions pu) Strong and consistent economic parameters: profitability, cash flow and distribution of dividends
Slide 5: Results for year ended December 31, 2019
© Results for year ended December 31, 2019 Revenues 1,573.2 NIS million Growth Net profit 128.9 NIS million Growth Gross 356.4 NIS million Growth Operating income percentage 10.9% 2018 Operating income 171.5 NIS million Growth EBITDA 244.9 NIS million Growth
Slide 6: Results for quarter ended December 31, 2019
© Results for quarter ended December 31, 2019 Revenues 399.1 NIS million Decline Net profit 42.8 NIS million Growth Gross profit 103.3 NIS million Growth Operating income percentage 12.8% 2018 Operating income 51.0 NIS million Growth EBITDA 70.0 NIS million Growth
Slide 7: Highlights and points of note 2019
© 2019 Highlights and points of note 4 a Record results Continued growth in all sectors of activity R Winning of strategic tenders Oy Continuation of synergistic acquisitions Acquisition of payroll and human resources services sector activity in the United States
Slide 8: A decade of revenue growth
© A decade of revenue growth NIS million 247 i a 2010 2011 * Reclassification Growth | | 2012 2013 2014 2015 2016* 2017* 2018 2019
Slide 9: A decade of growth in operating income and net profit
© A decade of growth in operating income and net profit NIS million 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -—@ Operatingincome -@ Net profit
Slide 10: Sectors of activity
© Sectors of activity Qlik@Q EH Microsoft Payroll and Marketing human © HILAN|7'N opentext~ of software resources Geeomat products services , WA busines Wr) 10
Slide 11: Distribution of operating income by sector of activity
© Distribution of operating income by sector of activity 2019 2019 Infrastructures 32% Business solutions Total operating income 171 NIS million, “4 17h Marketing of software products 43% Payroll and human resources services 2018 34% Business solutions , i EZ income \ Payroll and ale j human resourc
Slide 12: Payroll and human resources services sector
© Payroll and human resources services sector 2019 Revenues 258.3 NIS nilar G2) Growth -Q4 2019 Revenues 63.4 NIS nition Growth Operating income 74.4 NIS muon Growth Operating income 13.6 NIS nition) Growth Operating income percentage 28.8% 2018 Operating income percentage 21.5% S Qs 2018 e Growth i
Slide 13: Payroll and human resources services sector revenue growth
Payroll and human Growth resources services sector revenue growth L NIS million a 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 14: Business solutions sector
© Business solutions sector 2019 Revenues 921.7 NIS nitar GQ) Growth -Q4 2019 Revenues \ 222.0 NIS million Decline Operatin income 55.0 NIS millio Growth Operating income 14.7 NIS million Decline Operating income percentage 6.0% 2018 Operating income 2\ percentage 6.6% Qs 2018 e@ Q4 2019 had 6 fewer
Slide 15: Revenue growth in the business solutions sector
© Revenue growth In the business solutions sector NIS million 921.7 Growth 619 a. 2014* 2015* 2016 * 2017* 2018 2019 Ness seamen * Reclassification
Slide 16: IT infrastructures sector
IT infrastructures sector ili 20.9% NIS million “ e Continued growth in the sector's business activity, including change in the revenue mix and improved profitability rates Operating, income percentage 71.2% 2018 Operatin eto percentage 8.1% Qs 2018 16
Slide 17: Software products marketing sector
© Software products marketing sector 2019 : Operating Operating e Revenues income percentage 211.4 30.5 14.5% NIS nitro) NIS milion @ Growth Growth 2018 Q4 2019 . Operating Operating income Revenues income percentage 67.4 19.2 28.5% NIS nition NIS nition @&D Growth Growth Qs @ Growth in operating in
Slide 18: Main data from the profit and loss statement for the year 2019
© Main data from the profit and loss statement for the year 2019 NIS million Revenues 1,573.2 1,474.9 6.7% Gross profit margins Operating income 10.9% 10.3% percentage Net profit margin 8.2% 75%
Slide 19: Key figures from profit and loss statement for Q4 2019
© Key figures from profit and loss statement for Q4 2019 NIS million Revenues 399.1 411.5 (3.0%) Gross profit : 25.9% 22.5% margins Operating income 12.8% 11.4% percentage Net profit margin 10.7% 8.8% e@ Qs 2019 had 6 fewer workdays than Q4 2018 due to the timing of the Tishrei holidays 19
Slide 20: Impact of implementation of IFRS16
Impact of implement- ation of IFRS16 NIS million Balance sheet Profit and loss statement Cash flow For year ended December 31, 2019 W/ IFRS16 Section implementation Right-of-use asset 108.2 Lease liability (109.4) inancing expenses, et 10.0 quity profits 7.0 Taxes 39.5 et profit 128.9 ash flow used
Slide 21: Selected financial data for the year 2019
© Selected financial data for the year 2019 NIS million @ oD ©) 129.9 423.5 30.7 Cash and cash equivalents Shareholders’ equity Net financial debt (@ U ste 163.7 1,200.2 Cash flow from operating Total assets activities 21
Slide 22: Summary
© Summary Conclusion of a successful year of continued growth in business activity, primarily organic, in all sectors of the Group's activities, with a focus on the core business and expansion of the variety of products and services offered to customers 22
Slide 23: Hilan Group Thank you
Hilan Group Thank you