Hilan Ltd. · TASE:HLAN
Hilan — Investor Presentation (August 2019)
22 slides from Hilan's investor presentation, August 2019
Slide 1: Hilan Group Capital Market Presentation August 2019
Hilan Group Capital Market Presentations August 2019
Slide 2: Forward-looking information
Forward- looking information The presentation includes the Company's forecasts, estimates and plans reg arding its activities, which constitute forward-looking information as defined in the Securities Law, 5728-1968, the realization of which are not certain and which may be influenced by factors tha
Slide 3: Profile: A leading technology services group
bh © “ A leading Profile technology services group More than a decade of growth in all the operational parameters Specializing in management of the human resource and business solutions Focus of business activity
Slide 4: General data Q2 2019
© General data Q2 2019 N atl] 14.6% growth in operating income © Over 4,000 employed © 16.3% growth in net profit @ Cash flow from operating activities 66.8 NIS million
Slide 5: General data H1 2019
' 9.3% revenue General data growth H1 2019 Growth and increase in operating income across all sectors of activity 16.4% growth in operating income 19.2% growth in EBITDA (W/O the impact of IFRS16 implementation)
Slide 6: Results for first half of the year and the quarter ended June 30, 2019
© Results for first half of the year and the quarter ended June 30, 2019 H1 2019 (NIS million) Q2 2019 (NIS million) Revenues 787 NIS million Growth © Revenues 388 NIS million Growth Operating income 85.1 NIS million Growth es Operating income 40.3 NIS million Growth Operating EBITDA percentage 121.
Slide 7: Growth in operating income and net profit
© Growth in operating income and net profit First half NIS million 2015 ~@® Operating income 2016 ~@ Net profit 2017 2018 2019
Slide 8: Sectors of activity
© Sectors of activity Payroll and i BE Microsot Aik Q,_ FeMicosot Marketing human documentum CA. oF aatiwere resources © HILAN|7!N opentext? Giana) products Sauigss J Business WA solutions Ww)
Slide 9: Operating income distribution Q2 2019
© Operating income distribution Sectors of activity Q2 2019 35% Business solutions = . 0 50% Payroll and human resources services NIS million a IT Infrastructures 7% Marketing of software products
Slide 10: Operating income distribution H1 2019
© Operating income distribution Sectors of activity H1 2019 30% Business solutions ; Total operating income 8511 SS NIS million // fh) 50% Payroll and human resources services BL mn IT Infrastructures 12% Marketing of software products 10
Slide 11: Payroll and human resources services sector
© Payroll and human resources services sector H1 2019 (NIS million) Q2 2019 (NIS million) Highlights: @ New customers recruited Revenues 131.9 NIS million Growth @ Revenues 64.3 NIS million Growth Operating income 43.2 NIS million Growth S Operating income 20.3 NIS million Growth Operating income pe
Slide 12: Payroll sector revenue growth
© Payroll sector revenue growth First half NIS million 2015 2016 2017 2018 131.9 2019 12
Slide 13: Business solutions sector
Oo. Revenues Operating Operating — income income Oo 463.7 25.9 Percentage N NIS million NIS million 5.6% — Growth Growth owines e-) solutions (NIS million) sector On — Revenues Operating Operating CO income income i 230.7 14.2 percentage NIS million NIS million 6.2% N Growth Growth (NIS million) 19%
Slide 14: Revenue growth Business solutions sector
© Revenue growth Business solutions sector First half NIS million 2015 * * Reclassification 2016 * 2017 * 2018 * 463.7 2019 14
Slide 15: IT infrastructures sector
© IT infrastruct ures sector H1 2019 (NIS million) Q2 2019 (NIS million) Revenues 93.9 NIS million Decrease S Revenues 45.8 NIS million Decrease Operating income 6.6 NIS million Growth @ Operating income 3.3 NIS million Growth Operating income percentage 7.1% H1 2018 5.7% Operating income percentage
Slide 16: Software products marketing sector
© Software products marketing sector Revenues 99.4 NIS million Growth (NIS million) Ss Revenues 47.6 NIS million Growth (NIS million) 2.24 Highlights :@ Consolidation of ITWAY results from the beginning of 2019 H1 2019 02 2019 Operating Operating income income 10.6 percentage NIS million 10.6% Growt
Slide 17: Main data from profit and loss statement Q2 2019
© Main data from profit and loss statement Q2 2019 NIS thousands Revenues 387,608 Gross profit 83,239 Gross profit . 21.5% margins rato 40,275 income Operating income 10.4% percentage Net profit 28,821 Net profit . TA margin EBITDA * 58,629 * Reclassification * 361,379 75,004 20.8% 35,129 9.7h 24,78
Slide 18: Main data from the income statement H1 2019
Revenues 786,648 * 719,835 9.3% © Gross profit 172,787 153,081 12.9% Gross profit ; , margins 22.0% 21.3% Main data CS 85,140 73,160 16.4% from the income ‘ ‘ . profit and Operating loss income 10.8% 10.2% percentage statement Net profit 61,487 52,414 17.3% H1 2019 ; Net profit , , NIS thousands mar
Slide 19: Impact of implementation of the IFRS16 lease standard
Impact of implementation of the IFRS16 lease standard - main data for the period and quarter ended June 30, 2019 . W/ IFRS16 W/O IFRS16 The W/ IFRS16 W/O IFRS16 The Section F caallt ms F sans 5 implementation implementation change| jimplementation implementation change eZ. Right-of-use asset 116,799
Slide 20: Financial data as at June 30, 2019
ns a 37,359 355,867 144,340 nore at Cash flow generated by Shareholders’ equity Net financial debt INanCclat data operating activities as at June 30, 2019 NIS thousands 71,682 1,169,504 Cash and cash Total assets equivalents
Slide 21: Summary
© The resuits for the first hatt and second quarter of 2019 reflec Summary continued growth in the Group‘s business activities, including growth and an increase in operating income and net profit across all sectors of the Group's activity.
Slide 22: Thank you
Hilan Group Thank you