Slide 1: 1H21 Results Presentation
1H21 RESULTS PRESENTATION 25 February 2021 1 © 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 Dividend and outlook Q&A Appendix - EBITDA reconciliation - Strategy 3 © HANSEN TECHNOLOGIES
Slide 4: Hansen. Gas, Electricity and Water
GAS, ELECTRICITY AND WATER HANSEN. A global technology company serving the Gas, Electricity, Water and Communications industries. 580+ 80+ Tier 1 and 2 Regionally entrenched and Customers Countries customers global challenger to SAP Globally and Oracle. 27% 46% COMMUNICATIONS 56% 54% 17% EMEA APAC A
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 predictable businesses in the energy and from basic ‘utilities’ to communications sectors. suppliers of new energy related products and
Slide 6: 1H21 Headlines. A Strong Half.
1H21 HEADLINES. A STRONG HALF. REVENUE1 UNDERLYING EBITDA2 UNDERLYING NPATA3 $147.1m $54.3m $31.6m (constant currency) 2% (constant currency) 44% (constant currency) 77% $142.2m (reported) $52.3m (reported) $29.6m (reported) 36.9% margin REVENUE DERIVED FROM OWNED IP REVENUE VISIBILITY 97% 95% 1. 1H
Slide 7: 1H21 Headlines. A Strong Half.
1H21 HEADLINES. A STRONG HALF. UNDERLYING EPSa1 DIVIDEND NET DEBT2 15.9c ADJUSTED EPS3 5c (interim) DIVIDENDS $95.8m NET DEBT4 $20.7m (constant currency) 77% 67% 14.9c (reported) 1. Underlying Basic EPSa, based on Underlying NPATA; 77% growth is on underlying constant currency EPSa against prior per
Slide 8: A Strong Half. Continuing a Strong Track Record.
A STRONG HALF. CONTINUING A STRONG TRACK RECORD. REVENUE ($M)1 UNDERLYING EBITDA2 ($M) UNDERLYING NPATA3 ($M) 2% 44% 77% 54.3 144.3 147.1 31.6 37.7 17.9 52 157 48 29 30 142 118 112 112 119 34 23 87 88 25 29 29 18 74 75 22 23 24 22 16 15 15 16 13 13 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1
Slide 9: A Strong Half. Continuing a Strong Track Record.
A STRONG HALF. CONTINUING A STRONG TRACK RECORD. UNDERLYING EPSa1 (Cents) DPS (Cents) NET DEBT2 ($M) 77% 67% 18% 15.9 2 5.0 151 153 9.0 116.5 15 15 1 1 3.0 95.8 12 9 5 8 8 9 8 8 7 3 3 3 3 3 3 3 3 17 5 2 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H
Slide 10: Strong Cash Flow, Reduction in Net Debt
A STRONG HALF. STRONG CASH FLOW, REDUCTION IN NET DEBT AND INCREASED OPPORTUNITIES FOR GROWTH. $51.4m $0.9m $52.3m ($5.9m) ($2.0m) ($6.8m) $34.1m ($3.6m) $28.9m $0.2m ($5.2m) ($10.3m) $4.9m ($13.0m) ($0.9m) Reported Non-Recurring Underlying Working Capex Product Lease rental Gross Cash Interest on F
Slide 11: Highly Predictable Revenues with Strong Business Resilience
A STRONG HALF. HIGHLY PREDICTABLE REVENUES WITH STRONG BUSINESS RESILIENCE. 1 Proven model through • Gas, Electricity and Water, and Communications companies are recession proof and non-cyclical. financial crises • Services they provide are utilised regardless of economic backdrop; proven through Gl
Slide 12: Key Achievements in 1H21
KEY ACHIEVEMENTS IN 1H21. 1 2 3 STRATEGICALLY SIGNIFICANT SIGNIFICANT TECHNOLOGY AND STRONG PROFITABILITY FOCUS CONTINUED CUSTOMER WINS ORGANISATIONAL INVESTMENT • Customer wins in: • Development centres: strong recruitment of • Continued positive momentum in EBITDA – 5G Telecoms. new developers to
Slide 13: Strategic Significance of Recent Wins
STRATEGIC SIGNIFICANCE OF RECENT WINS. BUILDING THE FOUNDATION OF FUTURE IMPROVEMENTS IN ORGANIC REVENUE GROWTH. Category Description Example logos 1 • Hansen at the frontier of supporting 5G roll-out; significant new wins potential and applicability to other verticals. 5G Telecoms 1. DISH: 5G telec
Slide 14: M&A Update (I/II)
M&A UPDATE (I/II). A STRUCTURED APPROACH TO TARGET IDENTIFICATION AND EVALUATION. A clearly structured aggregation approach… … driven by clearly articulated aggregation criteria 1 Robust and mission • Mission critical software in the utilities 1. Value critical in existing verticals and communicatio
Slide 15: M&A Update (II/II)
M&A UPDATE (II/II). A STRUCTURED APPROACH TO TARGET IDENTIFICATION AND EVALUATION. Sources of aggregation leads … … funnelled through a proactive global screening effort (indicative) 1 • Historic discussions with potential Existing leads targets and advisors. • Significant database of contacts. Glob
Slide 16: Agenda
AGENDA. Company overview and results highlights Dividend and outlook Q&A Appendix - EBITDA reconciliation - Strategy 16 © HANSEN TECHNOLOGIES
Slide 17: Capital Management
CAPITAL MANAGEMENT. INCREASING INTERIM DIVIDEND AND PAYING OFF DEBT FOR NEXT STAGE OF GROWTH. Our position: NET DEBT ($M) • In 1H21, net debt was reduced by $20.7m to $95.8m. 116.5 • Leverage ratio1 = 1.03x as at 31 December 2020. 95.8 • Well supported by banks. $20.7m DOWN • Board is comfortable wi
Slide 18: FY21 Outlook
FY21 OUTLOOK. CONFIDENCE IN THE FUTURE. • We remain extremely confident in the future of our business. • We are updating our guidance to: – FY21 revenues: $295m - $305m (constant currency), $285m - $295m (reported). – Underlying FY21 EBITDA margin of 33% - 35%. 18 © HANSEN TECHNOLOGIES
Slide 19: Long-Term Financial Targets
LONG-TERM FINANCIAL TARGETS. WE ARE TARGETING $500M REVENUE BY FY25 BUILDING ON OUR LONG TRACK RECORD OF GROWTH. $600m Targeting $500m $140m revenue by FY25 Aggregation (size of bubble illustrative of transaction size) $500m $120m $400m $100m Revenues EBITDA PPL • By organic revenue Enoro Sigma $80m
Slide 20: What You Have in Hansen
WHAT YOU HAVE IN HANSEN. 1 2 3 4 5 CUSTOMER WINS STRUCTURED TEAM VISIBILITY AND STRONG FINANCIAL BEST OF BREED UNDERPINNING AND PROCESS FOR CONFIDENCE IN PERFORMANCE TECHNOLOGY ORGANIC GROWTH ACQUISITION GROWTH LONG-TERM OUTLOOK Resilience through global 1. Ongoing investment in 1. Strategically sig
Slide 21: Conclusion
CONCLUSION. 1. This has been a great half for our company and shareholders. 2. Strategic customer wins drive expected strong organic growth. 3. With our M&A process in place we are confident of driving our acquisition growth. 4. The second half is looking strong, and we are confident we will comfort
Slide 22: Agenda
AGENDA. Company overview and results highlights Dividend and outlook Q&A Appendix - EBITDA reconciliation - Strategy 22 © HANSEN TECHNOLOGIES
Slide 23: Q&A
Q&A miANSEN © wanseyfam@unovocif
Slide 24: Appendix
APPENDIX. Company overview and results highlights Dividend and outlook Q&A Appendix - EBITDA reconciliation - Strategy 24 © HANSEN TECHNOLOGIES
Slide 25: EBITDA Reconciliation
EBITDA RECONCILIATION. $54.3m $2.0m $0.9m $52.3m $51.4m 1H21 reported EBITDA Non-recurring items 1H21 underlying EBITDA FX 1H21 underlying EBITDA constant currency 25 © HANSEN TECHNOLOGIES
Slide 26: Appendix
APPENDIX. Company overview and results highlights Dividend and outlook Q&A Appendix - EBITDA reconciliation - Strategy 26 © HANSEN TECHNOLOGIES
Slide 27: 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 28: 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 29: Strategically Significant Recent New Logo / Licence Wins
1. BEST IN CLASS PROVIDING END TO END CUSTOMER CARE, BILLING AND PRODUCT CATALOGUE SOLUTIONS. STRATEGICALLY SIGNIFICANT RECENT NEW LOGO / LICENCE WINS. EXPANDED DOMINANT CLOUD & PRODUCT DIGITAL SERVICE AGILE INNOVATION NORDIC POSITION EVOLUTION ENABLEMENT & 5G ENABLEMENT 29 © HANSEN TECHNOLOGIES
Slide 30: 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 31: Successful Aggregation Strategy
3. SUCCESSFUL AGGREGATION STRATEGY. BUILDING ON OUR LONG TRACK RECORD OF GROWTH. $600m Targeting $500m $140m revenue by FY25 Aggregation (size of bubble illustrative of transaction size) $500m $120m $400m $100m Revenues EBITDA PPL • By organic revenue Enoro Sigma $80m $300m growth and our proven HiA
Slide 32: 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 33: 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 34: Hansen Technologies
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