Hansen Technologies Limited · ASX:HSN
Hansen Technologies — FY2024 Earnings Presentation
32 slides from Hansen Technologies's earnings presentation, Aug 21, 2024
Slide 1: Financial Year 2024 Results Presentation
FINANCIAL YEAR 2024 RESULTS PRESENTATION 21st August 2024 © HANSEN
Slide 2: Important Notice
This presentation has been prepared by Hansen Technologies Limited (Hansen) Information contained in this presentation: Definitions: IMPORTANT NOTICE • Is intended to be general background information only, • FY19 = financial year ended 30 June 2019 and is not intended that it be relied upon as advi
Slide 3: Agenda
AGENDA • FY24 Highlights & Leadership • Market, Product and AI Update • Results Details • Sustainability • powercloud & M&A • FY25 Guidance • Q&A • Financial Statements © HANSEN 3
Slide 4: FY24 Highlights & Leadership
FY24 HIGHLIGHTS & LEADERSHIP Andrew Hansen – Global CEO & Managing Director © HANSEN
Slide 5: FY24 Highlights
FY24 HIGHLIGHTS Operating revenue up 7.3%* from FY23 Underlying Cash EBITDA up 11.1%* 13.2% Operating revenue growth from FY23 including Demonstrating ongoing strong cash generation Hansen’s powercloud. Energy & Utilities revenue up 14.7%, No one (ex. powercloud) Underlying Cash EBITDA has increased
Slide 6: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS Revenue & Earnings Financial & Capital Discipline Delivering for Shareholders In the 5 months to June 2024 powercloud has We are rapidly paying down our debt and are well We prioritise the careful return of funds to our delivered $18.4m in additional revenue positioned for
Slide 7: Meet the Executive Team
MEET THE EXECUTIVE TEAM - READY FOR THE NEXT PHASE OF GROWTH ANDREW HANSEN GLOBAL CEO AND MANAGING DIRECTOR Andrew Hansen has served as a Director and CEO since 1993, guiding the company through decades of innovation and growth. Under his leadership, Hansen has successfully navigated the transition
Slide 8: Market, Product & AI Update
MARKET, PRODUCT & AI UPDATE Andrew Hansen – Global CEO & Managing Director © HANSEN
Slide 9: Growing & Global Group
GROWING & GLOBAL GROUP DELIVERING MISSION CRITICAL SOFTWARE TO TIER 1 AND 2 CUSTOMERS AMERICAS EMEA APAC A SAMPLE OF OUR CUSTOMERS AND LOCATIONS WHERE OUR PRODUCTS ARE USED © HANSEN 9
Slide 10: Energy & Utilities Sector Shift
THE ENERGY & UTILITIES SECTOR IS UNDERGOING A PROFOUND SHIFT PRESENTING UNIQUE OPPORTUNITIES FOR DIFFERENTIATION AND ORGANIC GROWTH Renewable Energy Integration: Electric Vehicle (EV) Charging Infrastructure: As the energy market moves toward renewable sources The rise of electric vehicles offers ne
Slide 11: Cross-Industry Expertise
WITH THE CONVERGENCE OF COMMUNICATIONS, TECHNOLOGY, AND MEDIA SECTORS, HANSEN IS CAPITALISING ON OUR CROSS-INDUSTRY EXPERTISE 5G and IoT Expansion: Data Monetisation: The rollout of 5G networks and the proliferation of As communications providers collect vast amounts Internet of Things (IoT) devices
Slide 12: AI-Optimised Power Trading Solution
HANSEN’S AI-OPTIMISED POWER TRADING SOLUTION SEAMLESSLY AUTOMATES ALL TRADING, BALANCE, SETTLEMENT, AND BILLING OPERATIONS EXTERNAL AI READY 2024 FUTURE STATE EXPOSE DATA SHARE AND BUILT -IN CONSUME INSIGHTS • AI ready data • Standard APIs that can be called • Native AI capability built into • Clean
Slide 13: Results Details
RESULTS DETAILS Richard English - Chief Financial Officer © HANSEN
Slide 14: Revenue Growth and Core Hansen
13.2%^ REVENUE GROWTH, 7.3% CORE HANSEN Operating Revenue ($m) Underlying Cash EBITDA1 ($m) Up 13.2%^ with strong revenue growth across all regions. ~2% Up 11.1% from FY23 Tailwind from FX. 8.2% (excluding powercloud) excluding Data Centre and powercloud Underlying NPATa2 ($m) Underlying EBITDA ($m)
Slide 15: Revenue Excluding powercloud & Data Centre
REVENUE EXCLUDING POWERCLOUD & DATA CENTRE ENERGY & UTILITIES REVENUE UP 14.7%, NO ONE CUSTOMER CONTRIBUTESMORE THAN 8% OF TOTAL FY24 REVENUE Revenue by Type & Region ($m) Revenue by Vertical ($m) Strong services revenue growth in APAC from a major upgrade in Australia. Growth and Transition in ener
Slide 16: Sufficient Capital for Further Acquisition Opportunities
SUFFICIENT CAPITAL FOR FURTHER ACQUISITION OPPORTUNITIES Group Cash Flow ($m) Reinvesting in our products • Focused investment in R&D to build growth • With a large proportion of our innovation now managed through our global network of developers we have maintained a deep investment in our products
Slide 17: Sustainability
SUSTAINABILITY Richard English - Chief Financial Officer © HANSEN
Slide 18: Integrated ESG Strategy
INTEGRATED A COMPREHENSIVE GLOBAL ESG STRATEGY INTO THE CORE OF OUR OPERATIONS FY24 Highlights • Australian Operations certified Carbon Neutral for the 3rd year with a 17% GHG reduction since FY21 • Implemented our ESG Strategy and developed our inaugural Climate report • Formally rolled out a Suppl
Slide 19: powercloud
POWERCLOUD Andrew Hansen – Global CEO & Managing Director © HANSEN
Slide 20: Germany Opportunity Over the Next Few Years
AN OPPORTUNITY IS PRESENTING ITSELF IN GERMANY OVER THE NEXT FEW YEARS Opportunity for Utilities require Upgrades needed Highly diverse and market share innovative software to manage smart Economies of scale regulated market increase and support meter rollout Competitors: Substitute products: New En
Slide 21: Acquisition and Integration Playbook
OUR PROVEN ACQUISITION AND INTEGRATION PLAYBOOK IS UNDERWAY • We aim to introduce the Hansen ethos into powercloud as soon as possible • powercloud will benefit from Hansen’s global resource pool and investment What have we done? What's next? End State PHASE 1 - Complete PHASE 2 - Underway PHASE 3 •
Slide 22: M&A Fundamentals Remain the Same
M&A FUNDAMENTALS REMAIN THE SAME M&A Acquisition Criteria • M&A continues to be a key focus of Hansen and we remain vigilant on opportunities in our pipeline • We constantly evaluate new opportunities and technologies in the utilities and communications Focus on providing mission Clear ownership of
Slide 23: FY25 Guidance
FY25 GUIDANCE Andrew Hansen – Global CEO & Managing Director © HANSEN
Slide 24: FY25 Guidance – Maintaining the Step Change in Organic Growth
FY25 GUIDANCE – MAINTAINING THE STEP CHANGE IN ORGANIC OPERATING REVENUE GROWTH Hansen Global Group powercloud Continuing to deliver higher than historic top line growth from the diversified global business. Inflationary pressure on margins is expected to continue • ‘Hansenisation’ efforts deliverin
Slide 25: Q&A
Q&A © HANSEN 25
Slide 26: Financial Statements & Appendix
FINANCIAL STATEMENTS & APPENDIX © HANSEN
Slide 27: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME RECONCILIATION OF UNDERLYING EBITDA AND NPATA FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2024 2024 2023 Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA)1 - Reconciliation $'000 $'000 2024 2023 Operating revenue 353
Slide 28: Consolidated Statement of Financial Position and Cash Flows
CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2024 2024 2023 2024 2023 $'000 $'000 $'000 $'000 Current assets Cash flows from operating activities Cash and cash equivalents 46,021 54,279 Receipts from customers 382,879
Slide 29: Operating Results Hansen Group
OPERATING RESULTS HANSEN GROUP Operating Results - HSN Group ($m) FY24 FY23 Mvmt. ($m) Mvmt. (%) Hansen - Operating 334.7 311.8 22.9 7.3% powercloud - Operating 18.4 - 18.4 Operating Revenue 353.1 311.8 41.3 13.2% Hansen (238.7) (211.1) (27.6) 13.1% powercloud (28.7) - (28.7) Operating Expenses (267
Slide 30: Both Verticals Are Well Diversified Across the Globe
BOTH VERTICALS ARE WELL DIVERSIFIED ACROSS THE GLOBE Energy & Utilities Communications & Media $183.2m FY24 Operating Revenue* $148.9m FY24 Operating Revenue Revenue by Billing Revenue by Billing Country Country We are engaging on a rich, dynamic & diverse range of projects, collaborating Our purpos
Slide 31: The German Transmission System Market
THE GERMAN TRANSMISSION SYSTEM IS THE MOST IMPORTANT HUB IN THE EUROPEAN MARKET AND ITS POWER SYSTEM IS INTERCONNECTED WITH 10 COUNTRIES Transmission system operators: • In Germany, the high-voltage transmission grid is managed by four main TSOs. Generation TSO DSO Suppliers • They are responsible f
Slide 32: Hansen
© HANSEN