Slide 1: 1H19 Result Presentation
—~ANSEN TECHNOLOGIES 1H19 RESULT PRESENTATION 22 FEBRUARY 2019 IN
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 TECHNOLOGY INDUSTRY VERTICALS Founded in 1971 Customer Information Systems = Utilities - energy & water - billing and customer care = Headquartered in Melbourne, = Pay-TV Australia = Data management systems = Telcos = ASX listed (HSN) = IP all owned TEAM CUSTOMER BASE SHARE
Slide 4: 1H19 Revenue & Profitability by Comparison
1H1I9 REVENUE & PROFITABILITY BY COMPARISON. On track to deliver FY19 guidance REVENUE! ($m) EBITDA? ($m) NPATA? ($m) 1H17— 0 2H17_—S 1H18—s 2H18_—s- 1H19. 1H17— 0 2H17_—Ss 1H18—s 2H18_—s- 1H19. 1H17— 0 2H17_—Ss1H18— 2H18_—s« 1H19. 1. 1HI9 revenue is in accordance with the new accounting standard fo
Slide 5: 1H19 Key Metrics
1H19 KEY METRICS. Adjusted DPS5 (Cents) GROSS DEBT ($m) 1H17— -2H17_——s«1H18—s 2H18_—s 1H19 1H17— 0 2H17_—Ss 1H18—s 2H18_—s- 1H19. 1H17— «2H17* -1H18 =. 2H18_—1H19 * Proforma gross debt post the draw down of 4. Adjusted Basic EPS based on NPATA ‘the 5. 2HiI8 dividend included a 1 cent special divide
Slide 6: 1H19 Operational Highlights
1H19 OPERATIONAL HIGHLIGHTS. = Enoro tracking very well = Additional new logo for billing system in Finland - following a successful Go-Live in FY18 = Major contract win to deliver the next generation Meter Data Management (MDM) solution in Sweden = New utility analytics SaaS product continues to ga
Slide 7: 1H19 Revenue Split
1H19 REVENUE SPLIT. Other 3% REVENUE BY VERTICA REVENUE BY GEOGRAPHY Pay TV 12% APAC 22% Telcos Energy 17% ny EMEA 60% 54% Americas 24% Water 8% Energy and Water comprise “Utilities” and Telcos and Pay TV comprise “Communications” in Note 3 to the Financial Statements - Revenue by Market Vertical FI
Slide 8: Revenue Bridge 1H18 to 1H19
REVENUE BRIDGE 1HI8 to 1H19. 120 aaa || 0.6 2.2 24 " As previously advised, revenue was . — 112.4 —_— — 112.4 lower in 2H18 compared to 1H18 due to 8.8 b 17 0.4 * reduced non-recurring revenue - a 100 function of both: - lower project work following the large body of work completed in 80 1H18 associ
Slide 9: Recurring and Non-Recurring Revenue
RECURRING AND NON-RECURRING REVENUE. Consistent with AASB 15 125 100 7 50 25 1H18 2H18 1H19 @ Recurring m Non-Recurring Recurring revenue = recurring maintenance, support, licence and dedicated service revenue Non-recurring revenue = service/project revenue, non-recurring licence revenue and hardwar
Slide 10: EBITDA Margin and Expenses
EBITDA MARGIN AND EXPENSES. EBITDA MARGIN (%) EXPENSES ($M) 100 28.6% 80 25.3% = 23.8 22.7% 60 40 63.8 61.6 20 0 1H18 2H18 1H19 img 2H18 1m19 mEmployee benefits m Other expenses 1H19 EBITDA margin was 25.3%, lower than the 28.6% in 1H18, but improved on the 22.7% in 2H18 1H18 margin was helped by th
Slide 11: 1H19 Cash Flow
1H19 CASH FLOW. 60 Free Cash Flow = $10.1m Working Capital increased by a net $8.0m during 1H19. Key contributors to the increase were: 50 iz! = The adoption of IFRS 15 had a net "i 28.5 $2.6m negative impact on working capital that will unwind over time S4 | = Major items giving rise to the 40 rema
Slide 12: How Hansen Creates Value for Shareholders
HOW HANSEN CREATES VALUE FOR SHAREHOLDERS, DELIVER SOLUTIONS FOR OUR CUSTOMERS CHANGING ADD NEW CLIENTS UNDERTAKE STRATEGIC ACQUISITIONS BUSINESS NEEDS = Have the best people . Look to win new clients with our = Extend our footprint into * Continually evolve our products existing product portfolio a
Slide 13: FY19 Outlook
FY19 OUTLOOK. = Our overall expectations for FY19 remain unchanged from the guidance provided on 17 August 2018 — The only exception is that due to 1IH19 revenue being somewhat higher than anticipated, we now anticipate 2H19 revenue to be consistent with 1IH19, whereas our previous guidance was for
Slide 14: Appendices
APPENDICES.
Slide 15: 1H19 Financial Comparison
1H19 v 1H18 1H19 v 2H18 A$m 1H18 2H18 1H19 Variance Variance Operating revenue 118.4 112.4 112.4 -5.1% 0.0% Other income 0.7 1.1 1.4 Operating expenses (85.4) (88.0) (85.4) EBITDA 33.8 25.5 28.5 -15.9% 11.7% Depreciation (1.9) (2.0) (1.9) Amortisation of R&D (2.4) (2.7) (3.4) EBITA 29.6 20.7 23.2 Am
Slide 16: Adoption of AASB 15
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 f
Slide 17: Cash Flow and Funding
A$m 1H18 2H18 1H19 ▪ EBITDA 33.8 25.5 28.5 Working capital/other (2.7) 4.3 (8.0) Net interest (0.9) (1.1) (0.6) Income tax (3.4) (3.4) (3.5) ▪ Operating cash flow 26.8 25.3 16.3 Capex (1.5) (1.3) (0.9) - Capitalised development costs (4.9) (5.2) (5.3) - Free Cash Flow 20.5 18.8 10.1 Acquisitions (65
Slide 18: Balance Sheet
A$m Dec 17 Jun 18 Dec 18 Cash 24.3 23.2 22.2 Receivables 44.0 37.3 39.2 Accrued revenue 6.8 5.8 8.1 Prepayments / other 5.3 5.4 6.4 PPE 11.0 10.6 9.7 Intangibles 234.5 243.4 241.3 Deferred tax assets 4.4 4.1 4.6 Total Assets 330.2 329.8 331.5 Payables 18.8 16.5 14.1 Unearned income 24.1 22.9 20.9 Cu
Slide 19: Thank You
THANK YOU.