Hilan Ltd. · TASE:HLAN
Hilan — Investor Presentation (March 2019)
29 slides from Hilan's investor presentation, March 2019
Slide 1: Hilan Group Investor Presentation March 2019
Hilan Group INVESTOR Presentatione March 2019
Slide 2: Forward-looking information
Forward- looking information The presentation includes the Company's forecasts, estimates and plans regarding its activities, which constitute forward-looking information as defined in the Securities Law, 5728-1968, the realization of which are not certain and which may be influenced by factors that
Slide 3: Celebrating 50 years and looking ahead to the future
Celebrating 50 years and looking ahead to the future
Slide 4: A leading technology services group
iA © a A leading Profile technology services group More than a decade of steady growth on all the operational parameters Specializing in management of the human resource and business solutions © Mean rate of return on capital over the past 3 years 35%
Slide 5: Results for year ended December 31, 2018
© Results for year ended December 31, 2018 Revenues 1,475 NIS million Growth & Operating EBITDA income 151.3 172.4 NIS million NIS million Growth Growth GS € Operating income percentage 10.3% Last year 10.1%
Slide 6: Results for quarter ended December 31, 2018
© Results for quarter ended December 31, 2018 Revenues Operating Income 411.5 46.9 NIS million NIS million Growth Growth EBITDA Operating income percentage 52.9 11.4% NIS million Growth
Slide 7: Highlights and points of note 2018
© 2018 Highlights and points of note Continued organic growth in all sectors of activity © Growth to 3,800 employed © Continuation of strategic acquisitions © Gained new representations of global software companies
Slide 8: A decade of revenue growth
1,475 1,319 1,214 © 1,147 A decade of revenue growth in NIS millions 361 ' 420 2009 «2010, 2011 = 2012, 2013 2014 2015 * 2016 * 2017 * 2018 * Reclassification
Slide 9: A decade of growth in operating income and net profit
© A decade of growth in operating income and net profit, in NIS millions 2009 2010 2011 2012 2013 ~@ Operatingincome -@ Net profit 2014 2015 2016 2017 2018
Slide 10: Sectors of activity
© Sectors of activity Payroll and Qlik (O} tf Microsoft documentum teeta les opentext? Giemai Marketing of human resources software services © HILAN|7!N products WA on
Slide 11: Distribution of operating income by sector of activity in 2018
© Distribution of operating income according to sector of activity in 2018 34% Business solutions Total operating \ 151 46% Payroll and human resources Th IT Infrastructures 0 13% Marketing of software products
Slide 12: Payroll and human resources sector
NO © =) — CO Payroll and human (NIS million) resources sector CO) KR NO (o) CO (NIS million) Revenues 240.2 NIS million Growth @ Revenues 58.0 NIS million Growth Operating Operating income income percentage 69.8 29.1% NIS million Growth So 29.2% Operating Operating income income percentage 12.7 22.0
Slide 13: Payroll sector revenue growth
© Payroll sector revenue growth in NIS million 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 13
Slide 14: New customers
© New customers @ raosikK IMs [NM "7D 4 Gilstetg hyn Taxa oma mM A Arkal Plus500 7 njnin 2 " WT m\¥) n nINynan © NEXes BrokerTec Zo p qo M@MENMCRIN j= CaP Tm — Innovare.oeiiven. proreor. SO GROUP €@ Playtika © Mis Auto Labs* MAKE IT SIMPLE ‘eS 9) Taman’ Cpe /_PLasan
Slide 15: Trends and changes in the world of payroll and human resources services
© Trends and changes in the world of payroll and human resources services Expanded activity with value added products Softer growth in the pension operation a: market Chara Trend towards outsourcing of cteristics services of activity Growth in the number of employed zor 2012 «20182014 = 2018082017 *
Slide 16: Business solutions sector
Business solutions sector (NIS million) (NIS million) Revenues 878.9 NIS million Growth o Revenues 237.5 NIS million Growth Operating income 52.7 NIS million Growth ee Operating income 17.8 NIS million Growth Operating income percentage 6.0% Last year’ 5.4% Operating income percentage 7.5% 16
Slide 17: Revenue growth Business solutions sector
879 +) 787 Revenue 681 growth 419 oie Business solutions sector NIS million 2014" 2015" 2016" 2017* 2018 * Reclassification 17
Slide 18: Innovation and its impact on the different sectors
Ua © 4 @ Innovation and its Financial Health Government impact on the different wits NITION [_L sectors ee | atte a fest "S779 my om,
Slide 19: Innovation and its impact on the different sectors
© Innovation and its impact High-tech Security on the different 4 ain sectors | Bice (inteD ” & v7, arene, CUT ons
Slide 20: Trends and changes in the world of business solutions
© Trends and changes in the world of business solutions Expansion of outsourcing services Rise in demand for high-tech workers and wages Digitalization Characteristics of activity Increased diversity of the workforce 20
Slide 21: IT infrastructures sector
NO © (=D) — CO IT infrastructures — «ismitiion sector | CO) KR NO CO CO (NIS million) Revenues 198.2 NIS million Growth 28.0% Revenues 62.7 NIS million Growth Operating Operating income income percentage 10.9 5.5% NIS million Growth -) 58.2% 4.5% Operating Operating income income percentage 3.9 6.2%
Slide 22: Software products marketing sector
NO © ) — Software 00 p roducts (NIS million) marketing sector 7: IX NO © CO (NIS million) Revenues 163.7 NIS million Growth @ Revenues 55.0 NIS million Growth Operating income 20.0 NIS million Operating income 3.1 NIS million Growth Operating income percentage 12.2% Last year’ 12.6% Operating income
Slide 23: Trends and changes in the world of IT infrastructures and marketing of software products
© Trends and changes in the world of IT infrastructures and marketing of software products Changeover toa Changeover to cloud-based services Growing demand for data analysis and processing _ Characteristics of activity Changes at global companies and their impact @BROADCOM & ee) opentext” § document
Slide 24: Main data from the profit and loss statement for 2018
© Main data from the profit and loss statement for 2018 in NIS thousand Revenues Gross profit Gross profit Margins Operating income Operating income percentage Net profit Net profit margin EBITDA 1,474,892 316,928 21.5% 151,285 10.3% 111,281 7.5% 172,390 1,318,584 289,042 21.9% 133,303 10.1% 100,151
Slide 25: Key data from profit and loss statement for Q4 2018
© Key data from profit and loss statement for Q4 2018 in NIS thousand Revenues Gross profit Gross profit margins Operating income Operating income percentage Net profit Net profit margin EBITDA 411,503 92,730 22.5% 46,948 11.4% 36,400 8.8% 52,909 349,789 78,907 22.6% 37,582 10.7% 27,579 7.9% 42,838
Slide 26: Dividend distribution
© Dividend distribution The Company distributed dividends in excess of NIS 340 million over a period of a decade (in NIS million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 26
Slide 27: Selected financial data for 2018
© Selected financial data for 2018 NIS thousands @2 4 @ 78,493 323,655 70,751 Cash flow generated by Shareholders’ equity Net financial debt operating activities @ 84,852 Cash 994,825 Total assets
Slide 28: Looking ahead to the future
© Looking ahead to the future while maintaining Hilan‘s leading position in the payroll and technology sector Examining expansion of activity beyond Israel's borders Mergers and acquisitions in the Group's core areas of business Representing and distributing innovative and advanced technologies from
Slide 29: Hilan Group Thank you
Hilan Group Thank you