Hilan Ltd. · TASE:HLAN
Hilan — FY2023 Earnings Presentation
28 slides from Hilan's earnings presentation, March 2024
Slide 1: Investor Presentation: Financial Statements for December 31, 2023
Slide 2: Clarification One
ANN HILAN|7N Clarification One The presentation includes the Company's forecasts, estimates and plans regarding its activities, which constitute forward-looking information as defined in the Securities Law of 1968, the realization of which is not certain and which may be influenced by factors that c
Slide 3: About Hilan
About Hilan 8 =) w® 1) Payroll, Business Solutions organizational systems and HR services Activity Sectors ‘ay mS Computing Marketing infrastructures software products © A leading technology services group ep Thousands of customers in a wide range of industries 000 inv) About 5,200 group employees Y
Slide 4: The Swords of Iron War - impact on group activities
HILAN|7'N The Swords of “Iron War" - impact on group activities Tegethor wal wn $ Essential factory Order 8 reserve duty Limited Exposure Group employees Financial strength Community contribution Hilan, Ness and Ness E. S. have an essential factory certificate for emergencies requiring continuous bu
Slide 5: Summary of Q4 Figures (in millions of ILS)
SW 56 ; HILAN|7'N Summary of Q4 Figures (in millions of ILS) noe Gross (@) Operating 2 8) -9'}Revenues profit £9 income ES et profit @ EBITDA 690.9 (iit) 173.9 Wes) 96.2 GR) 72.4 GR 123.2 Ve) N N \N \N = Gross @_ Operating @ -9 }Revenues & profit SS income ESNet profit @) EBITDA 614.1 151.9 76.9 57.
Slide 6: Summary of Annual Figures (in millions of ILS)
Summary of Annual Figures (in millions of ILS) HILAN|7‘N ‘ogether we'll win : Gross (@)_ Operating -@'}Revenues profit SSI income FS Net profit Ox EBITDA 2,588.8 (si) 575.5 ie) 288.8 SA 217.1 WY 395.2 Cem) N N N Gross Operating -@)Revenues 3} profit @Q, income FS Net profit G? EBITDA 2,232.9 516.2 2
Slide 7: Highlights and points of note
© HILAN|7‘N Highlights and points of note A bk «a @ & Record = Organicgrowth | Deepening = Expanded = Changesin results! inbusiness — servicesolutions | business | the job | activity | for payroll, cyber —§ activityinthe ~~ market _and IT operations © cloud
Slide 8: Hilan Group's Annual Operating Income vs Unemployment Rate for 2019-2023
Hilan Group’s Annual Operating Income vs Unemployment Rate for 2019-2023 © HILAN|7 =O= Hilan Group Annual Operating Income =O= Unemployment Rate* a . S weet i x Market outbreak Hybrid work ormal Reduced labor Swords of at full lockdowns format ull employment cutbacksand ron War employment and workin
Slide 9: Graph of 5-year Development Trendline (in millions of ILS)
Slide 10: Activity Sectors
Activity Sectors Ko) Ge Payroll, Organizational Systems and HR Services Ge) Computing Infrastructures Business process management services in BPO mode Professional service center in ASP mode Solutions for local software on customer AN premises . Payroll management services Business T&A Management so
Slide 11: Payroll, Organizational Systems and HR Services
i) Payroll, Organizational Systems and HR Services HILAN|7'N Together welll win N
Slide 12: Payroll Services, Human Resources and Organizational Systems — Results
1 @) Payroll Services, Human Resources and Organizational Systems — Results (in millions of ILS) HILANI7"N o o o a 5 i 2019 2020 2021 2022 2023 2019 «2020-2021 2022 2023 306.5 325.2 Ss oO << 258.3 2 & + a ” & B : = 2 Re) S z = 2019-2020 2021S 2022 2023 2019 2020-2021 2022 2023 2 Note: Results from H
Slide 13: Highlights and points of note
© HILAN|7‘N Highlights and points of note & EE iw wo Automation, Development of Expansionof § Searchfor — New user | value-added | Hashavshevet — M&A | customers experience and products for operations for opportunities | added information | regulation | SMBclients = = intheUS | security needs 13
Slide 14: Highlights and points of note: Customers Added
© HILAN|7: Highlights and points of note . _ 7 (©) | Bes NA ! DIMENSION Proofpoint. @ paloalto peya rawoe ue ? % wo fridenssn —,.42"gX_—_ novecore Customers —owamprarwn Schindler sresinaoersomnses ow Added (*) V bright data Q@ONEZERO connecteam 14 (*) Sample of new customers
Slide 15: Business Solutions
ZN Business Solutions 15
Slide 16: Business Solutions Sector - Results (in millions of ILS)
= \ HILAN|7'N nS Business Solutions Sector - Results (in millions of ILS) ee AonvaliRereme Dey Revenues > 2 = a o ~ © a Of Cs ; 2 Ss 8 & o $ 6 § A & N 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 _ Ava Operating nce _ 94 Doeatng eam *| BS N a 1 = rr 5 = 2 3 i Ss x 6 5 2019 2020 2021 2022 2023 2
Slide 17: Business Solutions Sector Highlights and points of note
O Huan n& Business Solutions Sector Highlights and points of note é Y C+ @ Substantial Extensive Provision of (The first) full year 6 expansion business in the | multi-cloud services | consolidated with Ness of the cyber and health sector | ES. (formerly DXC) information security | : integration has
Slide 18: Computing Infrastructures / Marketing Software Products
a) Computing Infrastructures be] Marketing Software Products HILAN|7'N Together welll win 18
Slide 19: Computing Infrastructures Sector — Results (in millions of ILS)
. HILAN|7'N @) Computing Infrastructures Sector — Results tin millions of ILS) coe nmal Revenues Ger Revenues *| 2 q ay o 3 S Se 2 S ~ ° ao co N oO ) o 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 = Q re} = 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 4.8 + ° 3 S + 13.6 19
Slide 20: Highlights and points of note
Recurring revenues growth High demand for services and solutions Highlights and points of note Continued private cloud investment and development together with the public cloud Ou Continued growth in cyber and information security operations 20
Slide 21: Software Marketing Sector — Results (in millions of ILS)
SSNS i & Software Marketing Sector — Results (in millions of ILS) HILANI?'N “Annual Revenues Gey Revenues °y GS 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 228.2 76.2 206.9 33.3 25.1 « 3 8 g 2 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2
Slide 22: Highlights and points of note
© HILAN|7‘N Highlights and points of note 2 So, Z, ® Continued transition | Over 40 Expansion of the Expense increases to subscription international softwar variety from expanding the licensing, replacing manufacturers of solutions and | mix of cloud-based perpetual licensing represented services so
Slide 23: Distribution of Operating Income by Activity Sector
Distribution of Operating Income by Activity Sector & Business \, ®@ Business\, > solutions ie Seis ational &S> solutions \ Total operating systems and HR Total operating income about income about 288.8 96.2 Million ILS Million ILS 0 Wh Computing 0 & Computing = infrastructures iW /, (cr infrastruct
Slide 24: Main Data from the Profit and Loss Statement of 2023 vs. 2022
Main Data from the Profit and Loss Statement of 2023 Vs. 2022 (in millions of ILS) © HILAN|71 2023 2022 Change % Q4-2023 Q4-2022 Change % Revenues 2,588.8 2,232.9 15.9% Revenues 690.9 614.1 12.5% Gross profit 575.5 516.2 11.5% Gross profit 173.9 151.9 14.5% Gross profit margin 22.2% 23.1% Gross prof
Slide 25: Financial Measures (in millions of ILS)
i ; HILAN|7N Financial Measures (in millions of ILS) seater el 31.12.2023 31.12.2022 023 2022 Cash and cash Equity attributable equivalents» owas 187.0 to shareholders aim | 833.2 Stable outlook Credit and loans . Maalot (S&P) from banking Th 1258 Current ratio 1.23 1:13 corporations — - Operating i
Slide 26: 2021 2022 2023 2022 2023 2022 2023 2022 2023 2021 2022 2023 2022 2023
2021 2022 2023 2022 2023 2022 2023 2022 2023 2021 2022 2023 2022 2023 2022 2023 2022 2023
Slide 27: 2023 - Summary and Look Ahead
& HILANIZIN nya 72 2023 - Summary and Loo! Arecord year across all parameters! The Group's status is positioned as a leader in the technology services sector Two significant acquisitions that contributed to increasing the group's activity Business and operational readiness for expanding activity 27
Slide 28: Hilan Group Thank You
HILAN|7N Hilan Group Thank You