Slide 1: FY18 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 offe
Slide 3: Hansen Technologies
—=ANSEN TECHNOLOGIES Since 1971 Hansen has been a leader in billing and customer care solutions to the Energy, Telecommunications and Pay-TV industries. Through global expansion, today millions of people around the world rely on our software for a secure, accurate and reliable billing experience. TR
Slide 4: The Hansen
The Hansen .. growing and diversifying by geography, industry, proprietary products and customers REVENUE BY GE CTUAL PROPER EMPLOYEES BIANSEN | 3
Slide 5: A track record of growth
A track record of growth REVENUE ($m) EBITDA ($) EPS (cents) CAGR 28% . CAGR 25% CAGR 18% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Strong track record of growth ... underpinned by expansion through acquisitions ®IANSEN | 4
Slide 6: FY18 financial dashboard
FY18 financial dashboard ... a record year REVENUE EBITDA! NPATA2 $230.8m $59.3m $38.0m 32% 29% 35% NET DEBT 19.4 cents 7.0 cents $4.0m 26% 1 cent Final dividend of 4.0 cents (fully franked), including 1.0 cent special dividend As of this reporting period (FY18), net foreign exchange gains (losses)
Slide 7: FY18 operational highlights
FY18 operational highlights OUR BIGGEST = Completion of our 9th earnings-accretive acquisition in 10 years ACQUISITION TO = Nordic-based Enoro was acquired effective 1 July 2017 for an enterprise value of A$94.7m DATE — Business performed strongly during the year, generating A$57.7m of operating rev
Slide 8: FY18 revenue split
FY18 revenue split REVENUE BY VERTICA! REVENUE BY GEOGRAPHY Other 3% Pay TV APAC 15% 22% Ener Telcos soK EMEA 17% 54% Americas 24% Water 7% With the acquisition of Enoro: = Energy is now 59% of revenue by vertical, compared to 43% in FY17 = EMEA is now 54% of revenue by geography, compared to 41% in
Slide 9: Operating revenue bridge FY17 to FY18
Operating revenue bridge FY17 to FY18 250 57.7 225 = Billing revenue excluding Enoro was essentially flat on a 200 OB constant currency basis ws sop 02 a = FX movements resulted in a minor $0.2m reduction in 150 ' - revenue on a constant currency basis 125 = Other! revenue was $2.1m lower (reducing
Slide 10: Recurring revenue growth
Recurring revenue growth 250 ASm 200 150 100 : A ° FY14 FY15 FYI6 FY17 FY18 =Recurring =Non-Recurring Recurring revenue = recurring maintenance, support, dedicated service and licence revenue Non-recurring revenue = service/project revenue, non-recurring licence revenue and hardware/software sales W
Slide 11: Expenses and EBITDA margin
Expenses and EBITDA margin OPERATING EXPENSES & EBITDA AS A % OF REVENUE 100% 80% 60% 40% 20% 0% FYI6 FYI7 FY18 mEmployee benefits =Otherexpenses = EBITDA For the purpose of the above FY18 calculations, a $0.6m grant received by Enoro in 2H18 and included in “other revenue” has been netted off again
Slide 12: Effective tax rate
Effective tax rate 30% 25% 20% 15% 10% 5% 0% FY15 FY16 9, 7.2% FY17 FY18 The Group's lower effective tax rate of 22.0% in FY18 is largely as a function of: — The reduction in the US federal corporate tax rate from 35% to a transitionary rate of 28% for FY18, which will further reduce to 21% in FY19.
Slide 13: FY18 Cash flow
FY18 Cash flow ... strong cash conversion 160 46.4 Borrowings Asm 140 Opening 30/6/2017 O03 Drawdown of ANZ facility 46.4 Acquired with Enoro 297 Repayment of Fnoro debt O97 120 Repayment of AN7 facility 1) Payment of Finance Lease (O.1) 50.0 i 7 100 Closing 30/6/2018 27.2 Free Cash Flow = $39.4m l
Slide 14: Strategic expansion via acquisition
Strategic expansion via acquisition .. the major growth driver for Hansen Having made 9 value-accretive acquisitions over the past 10 years, which now includes Enoro (our largest to date), the learnings from them give us strong confidence in our ability to continue to deliver for shareholders on thi
Slide 15: Strategic expansion through acquisitions over the past 10 years
Strategic expansion through acquisitions over the past <€-------------------- ACQUISITI PEACE NIRVANASOFT lec UTILISOFT BANNER TELEBILLING SOLUTIONS HIAFFINITY ENORO VERTIC ENERGY ENERGY PAY-TV ENERGY WATER/ENERGY TELCO/PAY-TV ENERGY WATER ENERGY GEOGRAPHY USA/A\ USA GLOBAL AUS NTH AMERICA/ CARRIBEA
Slide 16: Hansen footprint
Hansen footprint While we are already well represented on a global basis across our industry verticals, there remains significant scope to further extend and deepen our footprint ... AUSTRALIA NORTH SOUTH UK/ NORDICS WESTERN | EASTERN MIDDLE AMERICA | AMERICA IRELAND EUROPE EUROPE |EAST AFRICA| ENER
Slide 17: FY19 outlook
FY19 outlook Consistent with what was stated on 22 June 2018 - for FY19: — Underlying recurring revenue is anticipated to be higher — Total operating revenue, however, is expected to be slightly below FY18 as a result of: * — termination by us in June 2018 of an underperforming call centre contract
Slide 18: Appendices
APPENDICES.
Slide 19: Profit overview
Profit overview Variance Operating revenue 174.7 118.4 12.4 230.8 A 321% Other income 03 0.7 u 18 Operating expenses 128.9: (85.4) (88.0) 173.4) A 287% Depreciation (3.0) (9) (2.0) (3.9) Amortisation of R&D BS) GA) Q7) 51 A 287% Amortisation of acquired intangibles ' G4) (8.9) (SS) 4) EBIT 33.7 23.7
Slide 20: Cash flow
Cash flow A$m FY17 1H18 2H18 FY18 EBITDA 4B 255595 Working capital/other (57) (2.7) 43 16 Net interest 01 (0.9) ad (2.0) Income tax (9.3) ($4) ($4) (6.8) Operating cash flow 31.1 26.8 25.3 52.1 Capex (52) (5) 3) (27) aaa development costs (7.8) (4.9) (2) 0.0) Acquisitions (22.7) (65.0) 0.0 (65.0) Sh
Slide 21: Balance sheet
Balance sheet Cash 15.0 243 23.2 Receivables 377 43.2 SIS Accrued revenue AT 68 58 Prepayments / other 3.0 53 54 PPE 89 11.0 106 Intangibles 125.5 254.5 245.4 Deferred tax assets 48 AA Al Total Assets 199.6 329.5 329.8 Payables o7 18.8 16.5 Borrowings 03 41.6 272 Current tax iA 3.8 32 Provisions 108
Slide 22: FY18 Currency split
FY18 Currency split REVENUE BY CURRENCY Other DKK 1% 10% AUD 23% EUR 10% NOK 14% USD 30% GBP 12% HANSEN | 2
Slide 23: Forecast amortisation of acquired intangibles
Forecast amortisation of acquired intangibles Based on acquisitions to 30 June 2018 GROSS AMORTISATION ($M) AMORTISATION AFTER TAX ($M) 12 10 10 - 8 8 6 6 - 4 4 2 2 te) te) FY17 FY18F FY19F FY20F FY18F FY19F FY20F Note: 1. The above forecasts are based on asset balances, country tax rates and foreig
Slide 24: About Hansen
About HANSEN. =) =] = — — — | —— —] OUR COMPANY OUR TEAM OUR TECHNOLOGY = Founded in 1971 = Over 1000 staff worldwide = Billing and Customer Care * Listed & Headquartered in = |T staff seniority is double the solutions for Utilities, Pay-TV Australia industry standard and Telecom Industries = Averag
Slide 25: Thank You
THANK YOU.