Slide 1: Financial Year 2023 Results Presentation
FINANCIAL YEAR 2023 RESULTS PRESENTATION 23 August 2023 © HANSEN
Slide 2: Important Notice
This presentation has been prepared by Hansen Technologies Limited (Hansen) IMPORTANT NOTICE Information contained in this presentation: • Is intended to be general background information only, Definitions: • 1H22 = six months ended 31 December 2021 and is not intended that it be relied upon as advi
Slide 3: Agenda
AGENDA • About Us • FY23 Key Themes • Results Highlights • Results Details • Cash and Capital Management • Research & Development • Artificial Intelligence • M&A Updates • FY24 Guidance • Q&A • Financial Statements 3 © HANSEN
Slide 4: About Us
ABOUT US Andrew Hansen – Managing Director © HANSEN
Slide 5: We make complicated billing simple and provide solutions
We make complicated billing We own the IP have less than simple and provide solutions to 2% customer churn and are customers in the energy, gas, well diversified by location water and communications and customer. industries. We are at the heart of our We have highly predictable customers cash cycle
Slide 6: Hansen Technologies Limited
HANSEN TECHNOLOGIES LIMITED A proven Established in 1971 and listed on the ASX in 2000 strategy Customers in over 80 countries over many Our global diversification ensures we are not beholden to one product, client, currency, industry or geography years We own the IP, the implementation and the pric
Slide 7: FY23 Key Themes
FY23 KEY THEMES Andrew Hansen – Managing Director © HANSEN
Slide 8: FY23 Key Themes
FY23 KEY THEMES Strong FY23 organic revenue $78.8m of operating cash flow We delivered revenue growth of 5.2% - above the We are a strong stable and consistently cash upper end of our guidance & historical average generative business Several new logos & renewals won $53.8m returned to stakeholders O
Slide 9: Results Highlights
RESULTS HIGHLIGHTS Andrew Hansen – Managing Director © HANSEN
Slide 10: FY23 Financial Summary
FY23 FINANCIAL SUMMARY Revenue Underlying EBITDA1 NPAT2 $311.8m $99.5m $42.8m Down 0.8% vs FY22 Up 5.2% vs FY22 EBITDA Margin 31.9% Up 2.1% vs FY22 Basic EPS3 Dividend Net Debt5 21.1¢ 10.0¢ $0.4m Up 1.0% vs FY22 Flat on FY224 Net cash positive from July 2023 Notes: 1. FY23 underlying EBITDA excludes
Slide 11: Market Performance
MARKET PERFORMANCE Outperforming Small Ords & All Tech Index EPS Growth 250% up 18.0% (CAGR) since FY19 Consistent free cash flow has 225% delivered an improved return to shareholders over the same period 200% 175% Borrowing Levels 150% Down $131.5m since FY19 125% Net Debt effectively zero and read
Slide 12: Results Detail
RESULTS DETAIL Richard English - Chief Financial Officer © HANSEN
Slide 13: Key Financial Metrics
KEY FINANCIAL METRICS Revenue ($M) Underlying EBITDA1 ($M) NPAT2 ($M) 21.0 21.0 18.3 311.8 301.4 296.5 286.7 100.3 99.5 99.2 42.8 41.9 85.7 39.0 231.3 25.8 63.1 21.5 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • Revenue of $311.8m up 5.2% on FY22 • Underlying EBITDA ha
Slide 14: Key Financial Metrics
KEY FINANCIAL METRICS EPS1 (Cents) Net Debt2 ($M) DPS3 (Cents) 9.2 2 2 151.4 116.5 21.1 20.9 10 10 10 19.6 8 66.6 13.0 6 10.9 28.5 0.4 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • EPS has increased 18.0% (CAGR) since FY19 • We are net cash positive from July 2023 • We
Slide 15: Financial Overview
FINANCIAL OVERVIEW Support and Maintenance Revenue ($M) Licence Revenue ($M) • Predicable revenue impacted 73.4 75.3 • Highly predicable and 71.7 68.9 69.0 69.8 by timing of receipts 64.4 66.9 66.4 repeatable revenue source - 62.0 • CAGR FY19 – FY23 of 11.7% 22.5 14.2 15.3 18.7 ~95% predictable & re
Slide 16: Financial Overview
FINANCIAL OVERVIEW Revenue by Vertical ($M) • Revenue across verticals Revenue Breakdown ($M) remains evenly split • The move to renewables and 72.5 self-generated energy has 85.4 Type FY22 FY23 Movement 75.2 108.9 76.8 73.9 75.2 79.3 increased demand for our products and services across 79.7 78.0 S
Slide 17: Cash and Capital Management
CASH AND CAPITAL MANAGEMENT Richard English - Chief Financial Officer © HANSEN
Slide 18: Cash Flow
CASH FLOW We're a stable cash-generating business committed to reinvesting for growth and returning funds to our shareholders We have used our surplus (1.2) cash to pay down our debt (7.8) and return funds to our (4.8) shareholders. (21.1) 100.7 (7.0) 0.1 99.5 (12.1) 58.8 46.7 (33.8) (18.4) (5.4) Re
Slide 19: Capital Management
CAPITAL MANAGEMENT Borrowings ($M) DPS (Cents) $80.0m returned to shareholders since FY19 70.8% 2 2 185.8 158.4 117.5 10 10 10 8 87.9 6 54.3 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • Hansen's strong customer focus and our philosophy of treating business decisions • Our reliable cash flow h
Slide 20: Research & Development
RESEARCH & DEVELOPMENT Graeme Taylor - Chief Executive Officer © HANSEN
Slide 21: Research & Development
Capitalised R&D ($M) RESEARCH & 14, 000 6.7% 6.9% 8.0 % DEVELOPMENT 7.0 % 5.9% 12, 000 5.0% 6.0 % 4.7% 4.7% 4.8% 4.6% 10, 000 4.6% 4.4% 4.1% 3.6% 5.0 % 8,0 00 4.0 % 11.1 6,0 00 10.0 3.0 % 8.7 7.2 6.8 6.9 4,0 00 6.8 2.0 % 2,0 00 4.9 5.2 5.3 5.6 5.3 1.0 % - 0.0 % 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H2
Slide 22: Artificial Intelligence Our View
ARTIFICIAL INTELLIGENCE • Innovation is at the heart of our operations and we have been building OUR VIEW capabilities to harness AI and machine learning within our business • We expect to see compounding productivity gains from our utilisation of AI • Use of AI is not without concerns, and we are a
Slide 23: M&A Update
M&A UPDATE Andrew Hansen – Managing Director © HANSEN
Slide 24: Our pipeline of acquisition opportunities is robust
Our pipeline of acquisition opportunities is robust • Hansen has a well-established track record of value accretion through a disciplined and focused aggregation approach • Economic factors are favourable for acquisitions • Our focus is on robust and mission critical companies: • That have ownership
Slide 25: FY24 Guidance
FY24 GUIDANCE Graeme Taylor - Chief Executive Officer © HANSEN
Slide 26: FY24 Guidance
FY24 GUIDANCE ORGANIC REVENUE UNDERLYING R&D % OF REVENUE GROWTH EBITDA MARGIN 5-7% +30% 5-7% Our year ahead is particularly We expect our underlying We take a customer first strong with organic revenue EBITDA margin to remain above approach and manage our R&D growth reflecting our ongoing 30% and a
Slide 27: Q&A
Q&A © HANSEN 27
Slide 28: Financial Statements
FINANCIAL STATEMENTS © HANSEN
Slide 29: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME RECONCILIATION OF UNDERLYING EBITDA AND NPATA FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2023 2023 2022 Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA)1 - Reconciliation #039;000 #039;000 Operating revenue 311,766 296,5
Slide 30: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2023 2023 2022 2023 2022 #039;000 #039;000 #039;000 #039;000 Current assets Cash flows from operating activities Cash and cash equivalents 54,279 59,631 Receipts from customers 331,672
Slide 31: Hansen
© HANSEN