Slide 1: FY20 Results Presentation
FY20 RESULTS PRESENTATION 28 August 2020 © HANSEN TECHNOLOGIES
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: Agenda
AGENDA. Company overview and results highlights Strategy Dividend and outlook Q&A Appendix © HANSEN TECHNOLOGIES
Slide 4: Hansen
GAS, ELECTRICITY AND WATER HANSEN. A global technology company serving the Gas, Electricity, Water and Communications industries. Regionally entrenched and 580+ 80+ Tier 1 and 2 global challenger to SAP and Oracle. Customers Countries customers Globally COMMUNICATIONS CREATE-DELIVER-ENGAGE We develo
Slide 5: The Hansen Mission. Our Strategy.
GAS, ELECTRICITY AND WATER THE HANSEN MISSION. To further grow our best in class core business through aggregating mature, entrenched and To transform our customers predicable businesses in the energy and from basic ‘utilities’ to communications sectors. suppliers of new energy related products and
Slide 6: H2 2020 in Context
H2 2020 IN CONTEXT. 1 Uncertainty of impact of COVID-19; war room established COVID-19 customer impact did not 2 eventuate to date Unsure of customer impact, planned around a 15% decline of revenues 3 Work from home - maintained productivity Accelerated integration of Sigma trajectories 4 Defined wo
Slide 7: Background on EBITDA Definitions
BACKGROUND ON EBITDA DEFINITIONS. EBITDA RECONCILIATION. Comparative EBITDA ($M) Reported EBITDA ($M) Underlying EBITDA ($M) Pre-IFRS16 excluding non-recurring items IFRS16 adopted IFRS adopted excluding non-recurring items 40% 34% 36% 78.0 80.7 85.7 66.0 60.0 60.3 66.7 63.1 55.8 49.7 51.0 45.5 46.1
Slide 8: FY20 Headlines
FY20 HEADLINES. A RECORD YEAR. REVENUE REPORTED EBITDA1 UNDERLYING NPATA2 $301.4m 30% $80.7m 34% 1 $47.4m 41% 26.8% margin REVENUE DERIVED FROM OWNED IP REVENUE VISIBILITY 97% 95% 1. 34% gain is on reported FY20 EBITDA including non-recurring items against reported FY19 EBITDA including non-recurrin
Slide 9: FY20 Headlines
FY20 HEADLINES. A RECORD YEAR. ADJUSTED EPS1 DIVIDEND NET DEBT2 ADJUSTED EPS3 DIVIDENDS NET DEBT4 $34.9m 23.9c 40% 3c (interim paid) + $116.5m 5c (base final) + 2c (special) 1. Adjusted Basic EPS, based on Underlying NPATA 2. Net Debt excluding AASB 16 lease liabilities © HANSEN TECHNOLOGIES
Slide 10: A Record Set of Results
A RECORD SET OF RESULTS. RECORD EARNINGS. REVENUE ($M) EBITDA1 ($M) UNDERLYING NPATA2 ($M) 30% 34% 41% 301.4 80.7 47.4 230.8 231.3 66.0 38.7 60.3 33.7 174.7 49.7 51.0 28.6 28.0 149.0 34.0 19.1 106.3 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 • Impact of
Slide 11: A Record Set of Results: Strong Capital Management
A RECORD SET OF RESULTS. STRONG CAPITAL MANAGEMENT. EPSa1 (Cents) NET DEBT2 ($M) DPS (Cents) 40% 23% 33% 151.4 23.9 2.0 19.8 116.5 16.6 17.1 8.0 15.6 7.0 7.0 11.6 6.0 6.0 6.0 46.7 27.2 10.5 0.0 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 • Use of debt to
Slide 12: A Record Set of Results: Strong Cash Flow
A RECORD SET OF RESULTS. STRONG CASH FLOW, REDUCTION IN NET DEBT AND INCREASED OPPORTUNITIES FOR GROWTH. $85.7m $3.1m $80.7m ($5.0m) ($4.4m) $57.2m ($14.0m) ($8.2m) $44.2m $0.5m ($13.0m) ($27.8m) $6.7m ($10.1m) Underlying FY20 Non-recurring Reported FY20 Working capital Capex Product Lease rental Gr
Slide 13: Key Achievements in FY20
KEY ACHIEVEMENTS IN FY20. 1 2 3 4 5 ACCELERATING TRANSITIONING TO HIGH CUSTOMER COMPANY RECORD FINANCIAL HANSENISATION WORK FROM HOME SATISFACTION INVESTMENT PERFORMANCE • Acceleration of • Business transitioned • Net customer gain • $25m+ of R&D • Record revenues, integration of Sigma. quickly to a
Slide 14: Our Talent During the Global Pandemic
OUR TALENT DURING THE GLOBAL PANDEMIC. • Our people adapted well during COVID to full time working from home • Business retained key talent Our People & COVID • No confirmed cases of COVID in workforce, no office contamination. • Return to work strategy is conservative with mainly part-team returns
Slide 15: Agenda
AGENDA. Company overview and results highlights Strategy Dividend and outlook Q&A Appendix © HANSEN TECHNOLOGIES
Slide 16: The Drivers of Our Success
THE DRIVERS OF OUR SUCCESS. LONG TERM VALUE ACCRETIVE AGGREGATION OF MATURE, ENTRENCHED, AND PREDICTABLE BUSINESSES. 1 Best in class customer • Strong, profitable, cash generative, underlying business. care, billing and product • Mission critical software, database of record for products and custome
Slide 17: 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. CREATE, CUSTOMER CUSTOMER BILLING, RATING INNOVATE, CARE ACQUISITION & AND DATA DEFINE RETENTION & FULFILLMENT CAPTURE ENGAGEMENT Aggregating usage from Increasing customer Customer lifecycle – including me
Slide 18: Record Year of New Logo / Licence Wins
1. BEST IN CLASS PROVIDING END TO END CUSTOMER CARE, BILLING AND PRODUCT CATALOGUE SOLUTIONS. RECORD YEAR OF NEW LOGO / LICENCE WINS BRINGING MORE THAN $70M OF REVENUE OVER CONTRACT TERMS. EXPANDED DOMINANT CLOUD & PRODUCT DIGITAL SERVICE AGILE INNOVATION NORDIC POSITION EVOLUTION ENABLEMENT & 5G EN
Slide 19: Hansen Future Opportunities
2. HANSEN FUTURE OPPORTUNITIES. A DISCIPLINED APPROACH TO AGGREGATION OPPORTUNITIES. 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 capacity. existing vertical
Slide 20: Successful Aggregation Strategy
3. SUCCESSFUL AGGREGATION STRATEGY. $700m $200m $600m $175m Aggregation (size of bubble illustrative of transaction size) $150m $500m Revenues ? EBITDA $125m $400m PPL $100m Sigma Opportunities vs $300m Enoro COVID impact HiAffinity $75m $200m Telebilling Banner $50m Utilisoft $100m Nirvanasoft $25m
Slide 21: The 'Hansenisation' Approach
4. THE ‘HANSENISATION’ APPROACH. PROVEN ABILITY AND PROCESSES TO DRIVE VALUE ACCRETIVE AGGREGATION. Drive yield expansion and operating leverage Further Corporate goal opportunities • Identify margin improvement during initial engagement. • Aggregate a mature • Broaden foundation. • Price businesses
Slide 22: Our Global Diversification
5. OUR GLOBAL DIVERSIFICATION. GLOBAL PLATFORM MITIGATES RISK AND CREATES GROWTH OPPORTUNITIES. NORTH SOUTH UK/ WESTERN EASTERN MIDDLE AUSTRALIA ASIA NORDICS AMERICA AMERICA IRELAND EUROPE EUROPE EAST AFRICA PRESENCE: ENERGY Strong Moderate Emerging WATER Nil COMMS PAYTV • We diversify to mitigate r
Slide 23: Agenda
AGENDA. Company overview and results highlights Strategy Dividend and outlook Q&A Appendix © HANSEN TECHNOLOGIES
Slide 24: Capital Management
CAPITAL MANAGEMENT. RECORD DIVIDEND WHILE STILL REDUCING DEBT AND INVESTING IN GROWTH. NET DEBT ($M) Our position: 151.4 • In FY20, net debt was reduced by $34.9m to $116.5m. 116.5 • Leverage ratio1 = 1.46x at 30 June 2020. $34.9m DOWN • Well supported by banks Capital management philosophy: • Havin
Slide 25: FY21 Outlook
FY21 OUTLOOK. CAUTIOUS SHORT-TERM OUTLOOK WITH EXCITING LONGER-TERM FUTURE. Considering the continuing uncertainty caused by the ongoing pandemic, we are not providing earnings guidance for FY21 and look forward to updating the market with our progress following the release of our half year 2021 res
Slide 26: But What You Have in Hansen
BUT WHAT YOU HAVE IN HANSEN. ✓ Established in 1971. ✓ A highly proven and talented Executive management team. ✓ A predictable and cash generative focused business. ✓ Owners of pre-eminent software IP at the very heart of our customers. ✓ Serving mature and established industries. ✓ High barriers to
Slide 27: Agenda
AGENDA. Company overview and results highlights Strategy Dividend and outlook Q&A Appendix © HANSEN TECHNOLOGIES
Slide 28: Q&A
Q&A miANSEN © wanseyfam@unorocif
Slide 29: Agenda
AGENDA. Company overview and results highlights Strategy Dividend and outlook Q&A Appendix © HANSEN TECHNOLOGIES
Slide 30: EBITDA Reconciliation
EBITDA RECONCILIATION. Group Group FY20 A$m FY19 1H20 2H20 FY20 Operating Revenue 231.3 144.3 157.0 301.4 Other income 1.6 1.1 0.0 1.1 Remuneration (137.8) (85.8) (88.8) (174.6) Other expenses (50.2) (29.1) (27.1) (56.2) R&D Exp Capitalised 10.9 7.2 6.9 14.0 Total expenses (177.0) (107.7) (109.1) (2
Slide 31: Underlying NPATA Reconciliation & IFRS16 Impact
UNDERLYING NPATA RECONCILIATION & IFRS16 IMPACT. Operating AASB 16 FY19 FY20 lease expense Depreciation FY20 FY19 v FY20 A$m Comparable Reversal & Interest Reported Comparable Operating revenue 231.3 301.4 301.4 30% Other income 1.5 2.3 2.3 Operating expenses (179.8) (230.7) 7.7 (223.0) EBITDA 53.0
Slide 32: Cash Flow IFRS16 Impact
CASH FLOW IFRS16 IMPACT. FY19 FY20 Lease FY20 A$m Comparable Reversal Reported EBITDA 53.0 73.0 7.7 80.7 Working capital/other (0.4) 2.6 0.5 3.1 Net interest (2.0) (6.7) (1.2) (7.9) Income tax (6.7) (6.2) (6.2) Operating cash flow 43.9 62.7 7.0 69.7 Capex (3.0) (4.4) (4.4) Capitalised development co
Slide 33: Hansen Technologies
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