Hsenid Business Solutions Plc · CSELK:HBS.N0000

Hsenid Business Solutions — Q1 FY2024 Earnings Presentation

14 slides from Hsenid Business Solutions's earnings presentation, August 2023

  1. Slide 1: 1Q FY24 Earnings Presentation

    1Q FY24 Earnings Presentation August 2023

  2. Slide 2: hSenidBiz at a Glance

    hSenidBiz AT A GLANCE Operating from 6 countries… Offering a comprehensive range 25+ years of of HRIS solutions experience Sri Lanka Australia Singapore Over 1,000,000 users Bangladesh Kenya India …through 4 subsidiaries hSenid Business Solutions Limited Serves over 1,600 client organizations 100% 1

  3. Slide 3: Financial Highlights – 1Q FY24

    FINANCIAL HIGHLIGHTS – 1Q FY24 LKR mn 1Q FY23 1Q FY24 YoY Growth Revenue 307 357 16.3% Gross profit 123 108 -11.9% Gross profit margin 40.1% 30.4% -970pp EBITDA 211 (113) -153.4% EBITDA margin 68.8% (31.6%) -10,044pp Net profit 202 (109) -154.0% Net profit margin 65.9% (30.6%) -9,652pp EPS¹ 0.73 (0.

  4. Slide 4: PeoplesHR Recognised Regionally During 1Q FY24

    PeoplesHR RECOGNISED REGIONALLY DURING 1Q FY24 PeoplesHR received recognition from leading industry bodies and software review portals in the APAC region bolstering its efforts to drive overseas revenues 4

  5. Slide 5: Segment Performance

    &) hSenidBiz — THE WORLD OVER Segment Performance

  6. Slide 6: Key Segments Record Steady Growth Through FY20-23

    KEY SEGMENTS RECORD STEADY GROWTH THROUGH FY20-23 LKR mn 3yr CAGR 3yr CAGR 3yr CAGR 3yr CAGR 3yr CAGR 0% +48% +34% +32% -11% 700 600 500 400 300 200 100 - PeoplesHR OnPremise PeoplesHR Cloud PeoplesHR Outsourcing Tracking Solutions Other* FY20 FY21 FY22 FY23 * Includes declining non-core revenues su

  7. Slide 7: 1Q24 Revenue Breakdown

    1Q24 REVENUE BREAKDOWN REVENUE BREAKDOWN BY SEGMENT REVENUE BREAKDOWN BY GEOGRAPHY 3% MEA 8% 12% Other* 15% 19% 23% PHR Outsourcing 7% 5% 37% APAC 10% 6% 31% 40% Tracking Solutions 8% 7% 19% 12% PHR On-Premise 21% 57% 59% Sri Lanka 50% 52% 53% PHR Cloud 47% 1Q FY23 4Q FY23 1Q FY24 1Q FY23 4Q FY23 1Q

  8. Slide 8: PeoplesHR Cloud Account for 93% of New Deals in 1Q

    PEOPLESHR CLOUD ACCOUNT FOR 93% OF NEW DEALS IN 1Q PEOPLESHR ON-PREMISE PEOPLESHR CLOUD Revenue (LKR mn) Revenue (LKR mn) 90 190 80 185 180 70 175 60 170 50 165 40 160 155 30 150 20 145 10 140 - 135 1Q FY23 4Q FY23 1Q FY24 1Q FY23 4Q FY23 1Q FY24 ➢ PeoplesHR On-Premise recorded a 24.0% year-over-yea

  9. Slide 9: 1Q FY24 New Deal Bookings

    1Q FY24 NEW DEAL BOOKINGS ➢ New deal closures for the quarter were down 29.2% YoY in USD constant 100% 1% 3% currency terms 4% 1% ➢ Deal closures were hampered by longer sales cycles for deal closures across markets, owing to global business volatility 80% 42% ➢ PeoplesHR Cloud accounted for ~93.0%

  10. Slide 10: 1Q FY24 Revenue and Cost Drill Down

    1Q FY24 REVENUE AND COST DRILL DOWN REVENUE BREAKDOWN COST OF SALES BREAKDOWN YoY growth All in LKR millions 1Q FY23 1Q FY24 All in LKR millions 1Q FY23 1Q FY24 YoY growth (in LKR / USD cc) PHR On-premise 57 43 On-site and third- Implementation 17 9 29 34 +17% party implementation costs³ Licensing 1

  11. Slide 11: Liquidity and Return to Shareholders

    LIQUIDITY AND RETURN TO SHAREHOLDERS EARNINGS PER SHARE RETURN ON EQUITY RETURN ON CAPITAL EMPLOYED LKR 0.80 0.73 35% 41% 0.60 0.40 0.20 - (0.20) (0.40) (0.37) (0.40) -36% -29% -20% -23% (0.60) 1Q FY23 4Q FY23 1Q FY24 1Q FY23 4Q FY23 1Q FY24 1Q FY23 4Q FY23 1Q FY24 NET CASH * NWC / REVENUES ** FREE

  12. Slide 12: Outlook

    OUTLOOK Strategic priorities for FY24E ➢ Launching new product packaging and pricing strategy ➢ New market development initiatives focused on key markets in APAC ➢ Accelerating sales efforts in key markets to generate a stronger deal pipeline, with an increased focus on high-value, high-margin deals

  13. Slide 13: Disclaimer

    DISCLAIMER The material in this presentation has been prepared by hSenid Business Solutions PLC (“hSenid”) and is general background information about hSenid’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Infor

  14. Slide 14: Thank You!

    EMPOWERING PEOPLE THE WORLD OVER Thank You!

hSenid Business Solutions — Q1 FY2024 Earnings Presentation on 6ix