Hansen Technologies Limited · ASX:HSN
Hansen Technologies — Investor Day (May 2021)
58 slides from Hansen Technologies's investor day presentation, May 18, 2021
Slide 1: Hansen Technologies Capital Markets Day
For personal use only HANSEN TECHNOLOGIES Capital Markets Day 18 May 2021 1 © HANSEN TECHNOLOGIES
Slide 2: Important Notice
IMPORTANT NOTICE For personal use only 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 inve
Slide 3: Capital Markets Day Sessions and Presenters
CAPITAL MARKETS DAY SESSIONS AND PRESENTERS. A DETAILED DIVE INTO KEY ELEMENTS OF THE HANSEN TECHNOLOGIES STORY. For personal use only Sessions Presenters 1 1. History of Hansen. 2. Track record of delivery. History and strategy 3. Targets for the future. (8.00am – 8.30am AEST) 4. Experienced manage
Slide 4: History and strategy
For personal use only HANSEN TECHNOLOGIES History and strategy 18 May 2021 4 © HANSEN TECHNOLOGIES
Slide 5: Hansen: global technology company serving gas, electricity, water and communications
GAS, ELECTRICITY AND WATER HANSEN. For personal use only A global technology company serving the Gas, Electricity, Water and Communications industries. 600+ 80+ Tier 1 and 2 Regionally entrenched and Customers Countries customers global challenger to SAP Globally and Oracle. 27% 46% COMMUNICATIONS 5
Slide 6: The Hansen Mission and Strategy
GAS, ELECTRICITY AND WATER THE HANSEN MISSION. To further grow our best-in-class core business For personal use only through aggregating mature, entrenched and To transform our customers predictable businesses in the energy and from basic ‘utilities’ to communications sectors. suppliers of new energ
Slide 7: 50-Year Track Record in Technology
50-YEAR TRACK RECORD IN TECHNOLOGY. DRIVEN BY MANAGEMENT WITH >17 YEARS WITH THE COMPANY ON AVERAGE. For personal use only Beginnings Diversification Public company Aggregation acceleration • Founded in 1971 to • Diversified across • IPO of Hansen • Rapid growth with revenue CAGRs of around 25% thro
Slide 8: An Exceptional Financial Track Record
AN EXCEPTIONAL FINANCIAL TRACK RECORD. LONG-TERM SHAREHOLDER VALUE CREATION. For personal use only REVENUE ($M) UNDERLING EBITDA1 ($M) UNDERLYING NPATA1 ($M) 85.7 47.4 301.4 66.7 38.7 63.1 230.8 231.3 33.7 49.7 51.0 28.6 28.0 174.7 149.0 34.1 19.1 106.3 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 F
Slide 9: An Exceptional Financial Track Record: EPS, DPS, Net Debt
AN EXCEPTIONAL FINANCIAL TRACK RECORD. LONG-TERM SHAREHOLDER VALUE CREATION. For personal use only EPSa1 (Cents) DPS (Cents) NET DEBT2 ($M) 151.4 23.9 19.8 2.0 116.5 16.6 17.1 15.6 95.8 1.0 1.0 11.6 5.0 3.0 3.0 3.0 3.0 3.0 46.7 27.2 10.5 3.0 3.0 3.0 3.0 3.0 3.0 0.0 FY15 FY16 FY17 FY18 FY19 FY20 FY15
Slide 10: Financial Outlook and Long-Term Targets
FINANCIAL OUTLOOK AND LONG-TERM TARGETS. A STRONG FY21 OUTLOOK AND CLEAR PATHWAY TO GROWTH TO FY25. For personal use only FY21 outlook Long-term financial targets (FY25) 1 1 • $316m - $326m (constant currency) Revenue Revenue • $500m • $306m - $316m (reported) 2 2 EBITDA margin • 37% - 39% (underlyi
Slide 11: Deeply Experienced Management Team
DEEPLY EXPERIENCED MANAGEMENT TEAM. AVERAGE MANAGEMENT TENURE AT HANSEN OF >17 YEARS. For personal use only Andrew Hansen, CEO Julia Chand, General Counsel and Company Secretary • IT executive with over 30 years of experience, • Joined Hansen Technologies in 2007 and plays a including management of
Slide 12: Deeply Experienced Management Team
DEEPLY EXPERIENCED MANAGEMENT TEAM. AVERAGE MANAGEMENT TENURE AT HANSEN OF >17 YEARS. For personal use only Cameron Hunter, COO Scott Weir, President EMEA • Joined Hansen in 1987. • Joined Hansen in 2007 as European Director, bringing over 20 years’ experience in the • He manages operations across H
Slide 13: Deeply Experienced Management Team
DEEPLY EXPERIENCED MANAGEMENT TEAM. AVERAGE MANAGEMENT TENURE AT HANSEN OF >17 YEARS. For personal use only Darren Meade, Chief Delivery Officer Guy Tennant, Chief Technology Officer • With more than 30 years at Hansen, Darren Meade • Joined Hansen in 2013, having spent the bulk of oversees the tech
Slide 14: Deeply Experienced Management Team
DEEPLY EXPERIENCED MANAGEMENT TEAM. AVERAGE MANAGEMENT TENURE AT HANSEN OF >17 YEARS. For personal use only Bobby Slaton, Head of Global Strategic Sales Karen Sharpe, Director Learning Academy • Responsible for engaging with energy, utilities and • Karen is responsible for people development telecom
Slide 15: The Drivers of Our Success
THE DRIVERS OF OUR SUCCESS. LONG TERM VALUE ACCRETIVE AGGREGATION OF MATURE, ENTRENCHED, AND PREDICTABLE BUSINESSES. For personal use only 1 Best in class customer • Strong, profitable, cash generative, underlying business. care, billing and product • Mission critical software, database of record fo
Slide 16: Best in Class End to End Customer Care, Billing and Product Catalogue
1. BEST IN CLASS PROVIDING END TO END CUSTOMER CARE, BILLING AND PRODUCT CATALOGUE SOLUTIONS. For personal use only CREATE, CUSTOMER CUSTOMER BILLING, RATING INNOVATE, CARE ACQUISITION & AND DATA DEFINE RETENTION & FULFILLMENT CAPTURE ENGAGEMENT Aggregating usage from Increasing customer Customer li
Slide 17: Strategically Significant Recent Logo Wins
1. BEST IN CLASS PROVIDING END TO END CUSTOMER CARE, BILLING AND PRODUCT CATALOGUE SOLUTIONS. For personal use only STRATEGICALLY SIGNIFICANT RECENT LOGO WINS. EXPANDED DOMINANT CLOUD & PRODUCT DIGITAL SERVICE AGILE INNOVATION NORDIC POSITION EVOLUTION ENABLEMENT & 5G ENABLEMENT 17 © HANSEN TECHNOLO
Slide 18: Hansen Future Opportunities
2. HANSEN FUTURE OPPORTUNITIES. A DISCIPLINED APPROACH TO AGGREGATION OPPORTUNITIES. For personal use only WHAT WE ARE LOOKING FOR HOW WE EVALUATE IT HOW WE GO ABOUT IT • Focus will be on robust and mission critical • We evaluate each opportunity with the same • Capital management, knowing our capac
Slide 19: Successful Aggregation Strategy
3. SUCCESSFUL AGGREGATION STRATEGY. WE ARE TARGETING $500M REVENUE BY FY25 BUILDING ON OUR LONG TRACK RECORD OF GROWTH. For personal use only $600m Targeting $500m $140m revenue by FY25 Aggregation (size of bubble illustrative of transaction size) $500m $120m $400m $100m Revenues EBITDA PPL • By org
Slide 20: The 'Hansenisation' Approach
4. THE ‘HANSENISATION’ APPROACH. PROVEN ABILITY AND PROCESSES TO DRIVE VALUE ACCRETIVE AGGREGATION. For personal use only DRIVE YIELD EXPANSION AND OPERATING LEVERAGE FURTHER CORPORATE GOAL OPPORTUNITIES • Identify margin improvement during initial engagement. • Aggregate a mature • Broaden foundati
Slide 21: Our Global Diversification
5. OUR GLOBAL DIVERSIFICATION. GLOBAL PLATFORM MITIGATES RISK AND CREATES GROWTH OPPORTUNITIES. For personal use only Revenue FY16 Nordics $149m Canada 82 UK 300 171 Denmark Germany 105 India USA 254 267 Japan, 1 China 66 Vietna m 103 Singapore, 8 Australia Brazil, 11 221 NZ Argentina, 11 62 South A
Slide 22: Q&A
For personal use only Q&A © HANSEN TECHNOLOGIES
Slide 23: Technology
For personal use only HANSEN TECHNOLOGIES Technology 18 May 2021 23 © HANSEN TECHNOLOGIES
Slide 24: Hansen Innovation Model
HANSEN INNOVATION MODEL. MULTI-DIMENSIONAL APPROACH DELIVERS INNOVATION For personal use only ACQUIRE INVEST BUILD • A cornerstone of Hansen’s corporate strategy is • Robust, customer and industry driven R&D • Products: extending products (e.g., flexible to acquire innovative products. program per p
Slide 25: Customer Retention and the Stickiness of Our Solutions
CUSTOMER RETENTION AND THE STICKINESS OF OUR SOLUTIONS. OUR CLIENTS STAY WITH HANSEN DUE TO OUR APPROACH TO TECHNOLOGY AND CUSTOMER RELATIONSHIPS. For personal use only 1 Our technology is mission critical software, a database of record for products and customers with modern and feature-rich evolvin
Slide 26: Customer Driven Roadmap Example
CUSTOMER DRIVEN ROADMAP EXAMPLE In FY21 25% of the roadmap for the Sigma product lines was derived from dialogue with customers over features needed for their specific markets For personal use only Catalog: DPM: • Cross Offer Relationship Enhanced Modelling • Security Hardening • Entity Relation Ove
Slide 27: Our Technology Journey
OUR TECHNOLOGY JOURNEY. TRANSFORMING CLIENTS FOR FUTURE ADVANCEMENTS INCREMENTALLY AND SUSTAINABLY. For personal use only • We transform clients past forward • We have always believed in and future back. incremental innovation and co- development instead of hyped • So that they can always have the d
Slide 28: Some General Points on R&D at Hansen
SOME GENERAL POINTS ON R&D AT HANSEN. OUR CLIENTS HAVE AN EXPECTATION OF CONTINUED ROADMAP INVESTMENT. For personal use only 1 Hansen has made eight product-oriented acquisitions in the last seven years: R&D approach • Most of these clients have an expectation of continued roadmap investment. • Syne
Slide 29: Key Themes in Hansen Roadmaps
KEY THEMES IN HANSEN ROADMAPS. WHILST MOST PRODUCT LINES HAVE A DISTINCT WISHLIST THERE ARE CERTAIN CORE THEMES THAT ALL CLIENTS HAVE IN COMMON. For personal use only DIGITAL TRANSFORMATION Leveraging cloud technologies - A from Monoliths to microservices Technologies changing the way a business ope
Slide 30: Key Themes in Hansen Roadmaps
KEY THEMES IN HANSEN ROADMAPS. WHILST MOST PRODUCT LINES HAVE A DISTINCT WISHLIST THERE ARE CERTAIN CORE THEMES THAT ALL CLIENTS HAVE IN COMMON. For personal use only DIGITAL TRANSFORMATION Leveraging cloud technologies - A from Monoliths to microservices B Digital Service Providers C The Customer E
Slide 31: From Monolith to (Micro)Services: Leveraging Cloud Technologies
Digital Energy Telco FROM MONOLITH TO (MICRO)SERVICES: LEVERAGING CLOUD TECHNOLOGIES. Billing and Customer-Care solutions evolved over decades to satisfy all the requirements of the organizations For personal use only they served: • Complex and wide-ranging solutions that try to be all things to all
Slide 32: Hansen Products as a Suite of Loosely Coupled Services
Digital Energy Telco HANSEN PRODUCTS AS A SUITE OF LOOSELY COUPLED SERVICES. EACH INDUSTRY REQUIRES CERTAIN UNIQUE SERVICES, BUT MANY FUNCTIONS ARE COMMON TO BOTH. For personal use only 32 © HANSEN TECHNOLOGIES
Slide 33: Hansen Cloud Evolution
Digital Energy Telco HANSEN CLOUD EVOLUTION. CLIENTS PERCEIVE VALUE IN THE ADOPTION OF CLOUD TECHNOLOGIES/METHODOLOGIES BASED ON KEY EXPECTATIONS. For personal use only 1 Lower Total Cost of Ownership 3 Increased resilience, redundancy, best-of-breed security 2 Greater agility = faster time to marke
Slide 34: Hansen as a Digital Service Provider
Digital Energy Telco HANSEN AS A DIGITAL SERVICE PROVIDER. AS MORE DIGITAL PRODUCTS ARE SOLD, THERE ARE GOOD OPPORTUNITIES FOR SYNERGISTIC BUNDLING . For personal use only Overview • CableTV companies and Telco’s have proven that the “triple-play” bundle (TV, internet, VOIP) reduces customer churn.
Slide 35: Customer Engagement
Digital Energy Telco CUSTOMER ENGAGEMENT. A HEIGHTENED FOCUS ON THE OMNICHANNEL EXPERIENCE IS KEY TO DIGITAL TRANSFORMATION FOR ALL CLIENTS. For personal use only Hansen has an ongoing program of customer experience improvement initiatives on many product lines: • Streamline dashboards and workflows
Slide 36: Key Themes in Hansen Roadmaps
KEY THEMES IN HANSEN ROADMAPS. WHILST MOST PRODUCT LINES HAVE A DISTINCT WISHLIST THERE ARE CERTAIN CORE THEMES THAT ALL CLIENTS HAVE IN COMMON. For personal use only DIGITAL TRANSFORMATION Leveraging cloud technologies - A from Monoliths to microservices B Digital Service Providers C The Customer E
Slide 37: Distributed Generation & Renewables
Digital Energy Telco DISTRIBUTED GENERATION & RENEWABLES. HELPING COMMUNITY INITIATIVES THAT TARGET CUSTOMERS IN DEMOGRAPHICS SO FAR EXCLUDED FROM GREEN-TECH. For personal use only Community solar in the US • After strong years of growth on behind-the-meter rollout of solar and storage (including EV
Slide 38: The Data Tsunami: Lessons from the Nordic Region
Digital Energy Telco THE DATA TSUNAMI: LESSONS FROM THE NORDIC REGION. HIGH SMARTMETER PENETRATION AND DEREGULATED ENERGY MARKETS ARE CREATING CHALLENGES & OPPORTUNITIES. For personal use only • With smart meter penetration near ~100% in Finland and Norway, our customers are Distributors, Retailers
Slide 39: Key Themes in Hansen Roadmaps
KEY THEMES IN HANSEN ROADMAPS. WHILST MOST PRODUCT LINES HAVE A DISTINCT WISHLIST THERE ARE CERTAIN CORE THEMES THAT ALL CLIENTS HAVE IN COMMON. For personal use only DIGITAL TRANSFORMATION Leveraging cloud technologies - A from Monoliths to microservices B Digital Service Providers C The Customer E
Slide 40: Enabling 5G Innovation: The B2B Opportunity
Digital Energy Telco ENABLING 5G INNOVATION: THE B2B OPPORTUNITY. WHILST 5G WILL OFFER CONSUMERS EVEN FASTER NETWORKS , CSP’S SEE RETURN ON INVESTMENT COMING FROM THE B2B MARKET. For personal use only Fundamental to 5G networks is the ability to create “network slices” for industries, partners and i
Slide 41: Enabling New Retail Experiences: The Internet of Things
Digital Energy Telco ENABLING NEW RETAIL EXPERIENCES: THE INTERNET OF THINGS. THE PROLIFERATION OF APPLICATIONS FOR CONNECTED DEVICES PRESENTS CHALLENGES AND OPPORTUNITIES FOR CSP’S. For personal use only The cellular IoT market was valued at $1.15 billion in 2017 and is expected to register a compo
Slide 42: Synergies: Between Industries and Trends
SYNERGIES: BETWEEN INDUSTRIES AND TRENDS. OUR THREE INTERSECTING CIRCLES REPRESENT AN OVERLAP BETWEEN INDUSTRIES AND TRENDS. For personal use only Communication Service Providers Personalizing the Energy and Utilities • Seen a massive shift from voice, customer experience • As strategic national res
Slide 43: In Conclusion
IN CONCLUSION. For personal use only Our expanding geographic footprint, coupled with our increasingly broad experience in our focused verticals, gives us a unique vantage point from which to provide a viable pathway to evolving organizational capability: • Our R&D program is robust and tailored clo
Slide 44: Q&A
For personal use only Q&A © HANSEN TECHNOLOGIES
Slide 45: Acquisition growth
For personal use only HANSEN TECHNOLOGIES Acquisition growth 18 May 2021 45 © HANSEN TECHNOLOGIES
Slide 46: Executive Summary: Acquisition Growth Strategy
EXECUTIVE SUMMARY. A COMPREHENSIVE ACQUISITION GROWTH STRATEGY BUILDING ON OUR STRONG TRACK RECORD. For personal use only Strong acquisition track record • Long history of >25 value-accretive acquisitions fully integrated. • Proven ability to acquire larger businesses as our business has grown. • Si
Slide 47: Structured Acquisition Identification Process
1. STRUCTURED ACQUISITION IDENTIFICATION PROCESS. PROACTIVE AND COMPREHENSIVE PROCESS TO IDENTIFY ALL RELEVANT OPPORTUNITIES GLOBALLY. For personal use only 1 • Focused internal team researching potential acquisition targets. Internal M&A team • Includes those in existing database, new research and
Slide 48: Driven by Proven Evaluation Approach
2. DRIVEN BY PROVEN EVALUATION APPROACH. A STRUCTURED APPROACH TO TARGET IDENTIFICATION AND EVALUATION. For personal use only A clear evaluation criteria… … backed up by our experience 1. Mission critical software in the 1 BSS utilities and communications We know what we are looking for verticals. O
Slide 49: Experience in Completing Acquisitions
3. EXPERIENCE IN COMPLETING ACQUISITIONS. HANSEN HAS THE TRACK RECORD, EXPERIENCE AND SPEED TO EXECUTION TO SUCCESSFULLY COMPLETE ACQUISITIONS. For personal use only 1 2 3 4 EXPERIENCE TRACK RECORD LOGICAL HOME SPEED TO EXECUTION • Executive team that has working • Successful track record of • Given
Slide 50: Excellence in Integration: Synergies Captured
4. EXCELLENCE IN INTEGRATION. SYNERGIES CAPTURED BY HANSEN. For personal use only Drive all the synergies from the Synergies extracted Initial 90 days plan integration • Drive them as early as possible. • Replicated roles, office, sales, third • A structured and focused 90-day plan, parties. includi
Slide 51: Excellence in Integration: Shared Services
4. EXCELLENCE IN INTEGRATION. SHARED SERVICES – A STRONG PLATFORM FOR FUTURE ACQUISITION INTEGRATION. For personal use only Global shared services and common systems Finance Proven model Admin Legal Well established global structure of corporate services Change driven and completed in 90-day plan IT
Slide 52: Excellence in Integration: Hansenisation
4. EXCELLENCE IN INTEGRATION. “HANSENISATION”. For personal use only 1 2 3 4 5 6 PRODUCT REGIONAL ACCOUNT DELIVERY PRODUCT LOW-COST INVESTMENT STRUCTURE MANAGEMENT MANAGEMENT MANAGEMENT DELIVERY CENTRES PANEL • Business structured by • Key Hansen Function. • Separate from Account • Each product runs
Slide 53: Excellence in Integration: Communication
4. EXCELLENCE IN INTEGRATION. COMMUNICATION – SMOOTH INTEGRATION FOR STAFF, CLIENTS AND PARTNERS. For personal use only Staff 1 INTERNAL 2 EXTERNAL HANSEN Industry ACQUISITION Clients COMMUNICATION 3 DAY 1 Social 4 ONGOING 1 Identify 2 Evaluate 3 Complete 4 Integrate 5 Drive value 53 © HANSEN TECHNO
Slide 54: Driving Value: Ongoing Value Creation
5. DRIVING VALUE. ONGOING VALUE CREATION. For personal use only Hansen value creation Customer value creation 1 PROFITABILITY 2 PRICING POWER Certainty Quality 3 UPSELLING Relationship 4 CROSS-SELLING 1 Identify 2 Evaluate 3 Complete 4 Integrate 5 Drive value 54 © HANSEN TECHNOLOGIES
Slide 55: Sigma Case Study
SIGMA CASE STUDY. DRIVING VALUE THROUGHOUT THE ASSESSMENT, DILIGENCE, NEGOTIATION AND INTEGRATION PROCESSES. For personal use only PRE-DEAL ASSESSMENT INTEGRATION DRIVE VALUE 1. Adjacent product. 1. 90-day plan executed driving 80/20 1. Drive value through: synergies. 2. Nice synergy and cross-sell
Slide 56: Q&A
For personal use only Q&A © HANSEN TECHNOLOGIES
Slide 57: What You Have in Hansen
WHAT YOU HAVE IN HANSEN. For personal use only ✓ Established in 1971. ✓ A highly proven and talented Executive management team. ✓ A predictable and cash generative focused business. ✓ Owners of pre-eminent software IP at the very heart of our customers. ✓ Serving mature and established industries. ✓
Slide 58: For personal use only
For personal use only © HANSEN TECHNOLOGIES