Hansen Technologies Limited · ASX:HSN

Hansen Technologies — H1 2023 Earnings Presentation

27 slides from Hansen Technologies's earnings presentation, Feb 22, 2023

  1. Slide 1: First Half 2023 Results Presentation

    FIRST HALF 2023 RESULTS PRESENTATION 22nd February 2023 Confidential & Proprietary Information © HANSEN

  2. Slide 2: Important Notice

    IMPORTANT NOTICE This presentation has been prepared by Hansen Technologies Limited (Hansen) Information contained in this presentation: Definitions: • Is intended to be general background information only, • 1H22 = six months ended 31 December 2021 and is not intended that it be relied upon as advi

  3. Slide 3: Agenda

    AGENDA • 1H23 Key Themes • Company Mission • Results Highlights • Results Detail • Cash and Capital Management • Investing for Growth • FY23 Guidance • Q&A • Financial Statements 3 Confidential & Proprietary Information © HANSEN

  4. Slide 4: 1H23 Key Themes

    1H23 KEY THEMES Andrew Hansen – Chief Executive Officer Confidential & Proprietary Information © HANSEN

  5. Slide 5: 1H23 Key Themes

    1H23 KEY THEMES 1. No loss of customers in 1H23 2. Continued success for some significant project go lives 3. FY23 guidance unchanged at 3-5% organic revenue growth and +30% underlying EBITDA margin 4. Underlying EBITDA margin remains above pre-pandemic levels 5. Staff churn and wage pressure stabil

  6. Slide 6: Company Mission

    COMPANY MISSION Andrew Hansen – Chief Executive Officer Confidential & Proprietary Information © HANSEN

  7. Slide 7: The Hansen Mission

    THE HANSEN MISSION We make this possible by providing reliable, mission-critical software and industry expertise to help customers innovate and Our Mission is to provide industry- sell new services, comply with changing specific software products and regulations, and power new business expertise tha

  8. Slide 8: Results Highlights

    RESULTS HIGHLIGHTS Andrew Hansen – Chief Executive Officer Confidential & Proprietary Information © HANSEN

  9. Slide 9: 1H23 Financial Summary

    1H23 FINANCIAL SUMMARY Revenue Underlying EBITDA1 Underlying NPATA2 $149.1m $45.0m $24.0m 0.1% vs 1H22 17.0% vs 1H22 24.5% vs 1H22 Adjusted EPSa3 Dividend Net Debt5 11.9¢ 5.0¢ $28.7m 25.2% vs 1H22 flat vs 1H224 30.8% vs 1H22 Notes: 1. 1H23 underlying EBITDA excludes $596k of non-recurring items. Und

  10. Slide 10: Market Performance

    MARKET PERFORMANCE Outperforming Small Ords & All Tech Index 250% EPSa Growth up 9.8% (CAGR) 225% since 1H20 Consistent free cash flow has delivered an improved return 200% to shareholders over the same period 175% 150% Net Debt Levels down $124.4m since 1H20 125% Hansen is in a great position to re

  11. Slide 11: Results Detail

    RESULTS DETAIL Richard English – Chief Financial Officer Confidential & Proprietary Information © HANSEN

  12. Slide 12: Key Financial Metrics

    KEY FINANCIAL METRICS Revenue ($M) Underlying EBITDA1 ($M) Underlying NPATA2 ($M) 21.0 21.0 18.3 157.0 148.9 149.1 147.7 144.5 144.3 142.2 118.9 54.2 112.4 52.3 31.8 48.0 29.6 46.9 29.0 46.0 45.0 26.4 25.2 24.0 37.7 34.6 17.9 28.5 17.7 16.0 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 1H19 2H19 1H20

  13. Slide 13: Key Financial Metrics

    KEY FINANCIAL METRICS EPSa1 (Cents) Net Debt2 ($M) DPS (Cents) 9.2 2 2 153.1 151.4 116.5 15.9 14.9 14.9 95.8 13.1 12.6 5 5 5 5 5 5 11.9 66.6 9.0 9.0 8.1 3 3 3 41.5 28.7 28.5 0.4 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 1H19 2H19 1H20 2H20 1H21 2H21 1H

  14. Slide 14: Financial Overview

    FINANCIAL OVERVIEW Revenue by Vertical ($M) Revenue by Type ($M) 72.5 Type 1H22 1H23 Movement 75.2 73.9 75.2 79.3 108.8 76.8 Support and Maintenance 68.9 69.8 1.3% 78.0 79.7 Sales, Services and Other Revenue 60.0 67.1 11.8% 93.0 69.1 65.4 75.0 72.5 69.8 Subtotal 128.9 136.9 6.2% 40.9 48.2 32.7 1H19

  15. Slide 15: Cash and Capital Management

    CASH AND CAPITAL MANAGEMENT Richard English – Chief Financial Officer Confidential & Proprietary Information © HANSEN

  16. Slide 16: Cash Flow

    CASH FLOW We have used our strong cash position to pay down our debt, invest in our products and return funds to our shareholders. 0.6 We have used our surplus cash to pay down our debt and return funds to (16.1) (1.8) our shareholders. 44.4 45.0 (10.0) (3.6) 13.5 (6.1) 7.4 (22.7) (20.9) (9.2) Repor

  17. Slide 17: Capital Management

    CAPITAL MANAGEMENT Borrowings Borrowings ($M) • Hansen's strong customer focus and our philosophy of treating business decisions with the same level of considerations as if we were making them for ourselves has ensured 65.0% we maintain our robust cash position • We have used our strong cash generat

  18. Slide 18: Investing for Growth

    INVESTING FOR GROWTH Graeme Taylor – Chief Development Officer Confidential & Proprietary Information © HANSEN

  19. Slide 19: Research and Development

    RESEARCH AND DEVELOPMENT Hansen invests in its products to ensure our clients remain agile, responsive and relevant to their customers lives. Roadmaps are planned in consultation with Hansen’s clients to ensure new releases are rapidly adopted and result in continued loyalty and retention. Primary d

  20. Slide 20: Acquisition Approach

    ACQUISITION APPROACH When assessing a target our focus is on robust and mission critical existing or closely aligned third verticals: • That have ownership of the IP • That provide opportunities for regional expansion or leverage • Have complementary applications • Or provide potential other vertica

  21. Slide 21: FY23 Guidance

    FY23 GUIDANCE Andrew Hansen - CEO Confidential & Proprietary Information © HANSEN

  22. Slide 22: FY23 Guidance

    FY23 GUIDANCE Revenue ($M) 3-5% Growth vs FY22 • Our organic revenue growth target for FY23 remains 3-5% • We have significant headroom to support suitable value-accretive acquisitions 157.0 148.9 149.1 147.7 144.5 144.3 142.2 118.9 • Our business fundamentals are strong, and we have 112.4 further o

  23. Slide 23: Q&A

    Q&A Confidential & Proprietary Information © HANSEN

  24. Slide 24: Financial Statements

    FINANCIAL STATEMENTS Confidential & Proprietary Information © HANSEN

  25. Slide 25: Statement of Comprehensive Income and EBITDA/NPATA Reconciliation

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME RECONCILIATION OF UNDERLYING EBITDA AND NPATA FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Dec-22 Dec-21 Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) - Reconciliation 1 #039;000 #039;000 Operatin

  26. Slide 26: Statement of Financial Position and Cash Flows

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2022 FOR THE HALF-YEAR ENDED 31 DECEMBER 2022 Dec-22 Jun-22 Dec-22 Dec-21 #039;000 #039;000 #039;000 #039;000 Current assets Cash flows from operating activities Cash and cash equivalents 36,507 59,631 Receipts f

  27. Slide 27: Confidential & Proprietary Information

    Confidential & Proprietary Information © HANSEN

Hansen Technologies — H1 2023 Earnings Presentation on 6ix