Slide 1: FY22 Results Presentation
FY22 RESULTS PRESENTATION 24 August 2022 Confidential & Proprietary Information © HANSEN
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 highlights • FY22 financials in detail • Dividend and outlook • Q&A Confidential & Confidential Proprietary Information & Proprietary Information © HANSEN ES
Slide 4: Company Highlights
COMPANY HIGHLIGHTS Confidential & Proprietary Information © HANSEN
Slide 5: Introduction to Hansen
INTRODUCTION TO HANSEN • Proud 50+ year history • Providing mission-critical IT solutions globally across the essential Energy, Water and Communications industries • Strong reputation of customer delivery • Results in long-term (10+ years) partnering relationships with customers • Highly experienced
Slide 6: Hansen is a global business
HANSEN IS A GLOBAL BUSINESS 1,550+ TOTAL FTE 600+ CUSTOMERS (TIER 1 & 2) 80+ COUNTRIES UK & Nordics Canada Ireland 54 252 171 Europe 113 India USA 160 361 Japan, 1 China 27 REVENUE BY VERTICAL Mexico, 1 Vietnam 169 Australia 50.3% 49.7% Brazil, 7 179 Indonesia, 4 NZ 42 SA Argentina 15 Energy and Wat
Slide 7: Hansen's defensive position delivers
HANSEN’S DEFENSIVE POSITION DELIVERS FULLY DIVERSIFIED CONSISTENT GROWTH CUSTOMER FOCUSED SOUND PRINCIPLES • Servicing recession-proof industry • Industry segments providing • New logo wins driven by a strong • Treat the Company funds as if they verticals organic growth across different reputation a
Slide 8: Led by an experienced team
LED BY AN EXPERIENCED TEAM • Founder-led business with focused, highly skilled leadership team • Team brings more than 175 years of Hansen experience and many more in overall business experience • Complemented by strong local leadership and local talent providing industry-specific support to local c
Slide 9: Delivering strong shareholder value
DELIVERING STRONG SHAREHOLDER VALUE 250% EPSa Growth: 200% +70% since 2019 150% Debt levels: 100% -$122m since 2019 50% 0% 57% of Net Profit HSN.AX S&P/ASX Small Ords after Tax returned to shareholders during FY22 Through consistent focus and a strategic view of the future Confidential & Proprietary
Slide 10: Reputation built on customer satisfaction
REPUTATION BUILT ON CUSTOMER SATISFACTION Resulting in strong customer retention and recurring revenue • End-to-end B2B & B2C billing and customer information system (CIS) solutions on prem, hosted and SaaS Functional & Flexible • Enabling digital transformation to help customers increase operationa
Slide 11: Strong customer momentum
STRONG CUSTOMER MOMENTUM Industry related products are delivering positive results • Exelon Corporation contract to provide Hansen Market-Message NEW LOGO WIN • Contract term of 7 years with associated revenue of c. US$24.6m • Exelon is the largest utility company in North America • Upgrade existing
Slide 12: Addressing the challenges in the current global market
Addressing the challenges in the current global market Confidential & Proprietary Information © HANSEN
Slide 13: Tackling the global challenges
TACKLING THE GLOBAL CHALLENGES With 50+ years of industry experience we approach these challenges with confidence LABOUR CHURN INFLATIONARY PRESSURE RISING INTEREST RATES M&A STRATEGY • The IT industry has experienced high • Inflation is close to peaking in many • Central banks frontloading rate • T
Slide 14: FY22 Financial Summary
FY22 FINANCIAL SUMMARY Revenue1 Underlying EBITDA1 Underlying NPATA1 $296.5m 3.4% $100.3m 1.1% $58.2m 6.2% Adjusted EPSa1 3 Dividend Net Debt4 29.0₵ 5.4% 12.0₵ 20.0% $28.8m 56.7% (7₵ interim paid + 5₵ final) Notes: 1. These metrics are presented after adjusting the FY21 full year result for the impa
Slide 15: FY22 Financials in Detail
FY22 FINANCIALS IN DETAIL Confidential & Proprietary Information © HANSEN
Slide 16: Strong performance despite headwinds
STRONG PERFORMANCE DESPITE HEADWINDS REVENUE ($M)1 UNDERLYING EBITDA2 ($M) UNDERLYING NPATA3 ($M) 5.4% 1.1% 3.4% 21.0 18.3 99.2 100.3 54.8 58.2 85.7 46.9 66.7 63.1 38.7 33.7 49.7 51.0 28.6 28.0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 • After adjusting for Telefonica rev
Slide 17: Continued positive cash generation
CONTINUED POSITIVE CASH GENERATION EPSa1 (Cents) NET DEBT2 ($M) DPS (Cents) 5.4% 9.2 2.0 2.0 5.0 5.0 -56.7% 1.0 1.0 27.5 29.0 5.0 23.9 151.4 3.0 3.0 3.0 3.0 16.6 19.8 17.1 116.5 15.6 5.0 5.0 66.6 3.0 3.0 3.0 3.0 3.0 28.8 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20
Slide 18: Taking profits to the bank
TAKING PROFITS TO THE BANK • Very strong Free Cash Flow of $63.7m after funding tax obligations associated with record profits in FY21 (down from $70.1m in FY21) • Net debt reduced by $34.0m (50%) to $28.8m • Leverage ratio1 of 0.31x (down 44%) from 0.55x in FY21, highlighting significant headroom f
Slide 19: Dividend and Outlook
DIVIDEND AND OUTLOOK Confidential & Proprietary Information © HANSEN
Slide 20: Resilience pays dividends, reduces debt
RESILIENCE PAYS DIVIDENDS, REDUCES DEBT NET DEBT ($M) Strong business principles focused on customer needs delivers results Our position: • Strong consistent cash flows have retired over $120m of debt in a little over 3 years 151.4 116.5 • Consistent free cash flow has delivered an improved return t
Slide 21: Now and the future
NOW AND THE FUTURE Where we are today • Hansen offers a stable predicable platform for growth servicing essential market verticals of Energy, Water and Communications • Product offerings are focussed to customer requirements and deliver predictable revenue growth • Hansen’s reputation of delivering
Slide 22: Now and the future
NOW AND THE FUTURE Looking to the Future • Due to current economic conditions we expect modest organic revenue growth driven by a combination of new product sales into our existing customer base and new logo wins • Labour churn expected to stabilise, with labour costs to moderate in the longer term.
Slide 23: Q&A
Q&A Confidential & Proprietary Information © HANSEN
Slide 24: Confidential & Proprietary Information
Confidential & Proprietary Information © HANSEN