Gentrack Group Limited — Capital/Financing Update 2018

Jun 20, 2018

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21 June 2018

GENTRACK EXPANDS UTILITY SOLUTIONS OFFERING WITH ACQUISITION OF EVOLVE ANALYTICS

Gentrack Group Limited (NZX/ASX: GTK) is pleased to announce that it has entered into an unconditional agreement to acquire 100% of the shares of Evolve Parent Limited and Evolve Analytics Limited ("Evolve"), a market leading provider of energy data analysis software and services provider in the UK, for an enterprise value of £23.0m (NZ$44.2m).

Evolve specialises in the identification and correction of settlement and billing errors as well as the accuracy of standing data. Customers include three of the "Big 6" energy suppliers in the UK, as well as a number of independent challenger utilities, with Evolve capturing data for over 17 million meter points. The software, analytical systems and methodologies developed by Evolve deliver significant financial and operational performance benefits for clients. Evolve offers their extensive Intellectual Property on a Software as a Service (SaaS) basis delivering a high proportion of recurring revenue (FY19 forecast 58%) and margins in excess of 50%.

The acquisition of Evolve further strengthens Gentrack's position as an industry leader in the UK for utility billing and customer information systems by providing highly complementary software services, intellectual property and customer relationships.

John Clifford, Gentrack Chairman said, “We are delighted that Evolve is joining the Gentrack group. The combined UK business is well positioned to provide highly innovative, value enhancing solutions to UK energy and water utilities and provides a strong base for expansion into new markets.”

Ian Black, Gentrack CEO said, “The acquisition of Evolve extends Gentrack's offering into data settlement and billing reconciliation solutions. Following the acquisition, Gentrack will have 53 utilities customers in the UK with an increased exposure to the "Big 6" energy suppliers. We expect the Evolve solutions to be highly valuable to our existing UK customer base, and there is an opportunity to extend this new offering to the Australian and New Zealand markets."

The senior management of Evolve will remain with the business to drive its ongoing success.

Settlement of the Evolve acquisition is expected to occur on 29 June 2018.

The acquisition is to be 100% funded through an extension of Gentrack’s debt facilities with ASB.[1] Gentrack currently has debt facilities of NZ$50.5m which will increase by NZ$47m under the new term facility.

Evolve is forecast to achieve revenue of £3.1m and EBITDA[2] of £1.8m in the year to 30 April 2019. On the basis that the acquisition is debt funded, Gentrack expects the acquisition to be low single digit earnings per share accretive in the first full year (FY2019) and to drive increased growth in future earnings.

1 £1m of the Enterprise Value consideration will be paid through the issue of new Gentrack shares to certain Evolve employees.

2 EBITDA: Earnings before net finance expense, tax, depreciation and amortisation and other non-operating expenses. Non-operating expenses are costs relating to acquisition.

Gentrack Group Ltd | www.gentrack.com | info@gentrack.com | ARBN 169 195 751

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Gentrack is intending to undertake a fully underwritten pro-rata renounceable entitlement offer to reduce its debt, which will provide flexibility to support future acquisition and growth opportunities. Gentrack has appointed Deutsche Craigs Limited and UBS New Zealand Limited to manage any offer.

ENDS

Contact details regarding this announcement:

Ian Black, CEO

Aaron Baker, Marketing and Communications Director

+64 9 966 6090

Gentrack Group Limited Investor Update Instructions

Gentrack Group Limited (NZX/ASX: GTK) invites investors to a conference call on Thursday 21 June 2018 at 11:30am NZT / 9:30am AEST (duration 30 mins) to review Gentrack’s acquisition of Evolve Analytics Ltd.

The audio recording from the briefing will be made available in the Gentrack Investor Centre ( https://www.gentrack.com/investors) following the call.

Audio – Participant Access Instructions

Please join the briefing 5-10 minutes prior to the start time. You will be asked to provide the conference name and confirmation code below:

• Name: Gentrack Group Limited Investor Update

• Confirmation Code: 6220597

(Following entry, please provide the required details when prompted)

The dial-in numbers for available locations are listed below.

-	Australia	Tollfree/Freephone	1 800 573 793
-	Australia, Brisbane:	Local	+61 (0)7 3105 0938
-	Australia, Melbourne	Local	+61 (0)3 8317 0932
-	Australia, Sydney	Local	+61 (0)2 9193 3706
-	Hong Kong	Tollfree/Freephone	800 961 105
-	Hong Kong	Local	+852 3008 1527
-	New Zealand	Tollfree/Freephone	0800 423 970
-	New Zealand, AKL	Local	+64 (0) 9 9133 622
-	Singapore	Tollfree/Freephone	800 186 5107
-	Singapore	Local	+65 6320 9025
-	United Kingdom	Tollfree/Freephone	0800 358 6377
-	United Kingdom	Local	+44 (0)330 336 9105
-	United States, LA	Local	+1 323-794-2093
-	United States/Canada	Tollfree/Freephone	866-548-4713

Gentrack Group Ltd | www.gentrack.com | info@gentrack.com | ARBN 169 195 751

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About Gentrack

Gentrack provides essential software for essential services, pairing powerful platforms with deep market knowledge to help utilities and airports lower service costs, foster innovation and confidently navigate market reform. It employs over 500 people in offices across New Zealand, Australia, the UK and Europe and services over 200 utility and airport sites in 20 countries with its leading solutions for utilities - Gentrack Velocity and Junifer, and for airports under the Veovo brand including Airport 20/20, BlipTrack and Concessionaire Analyzer+.

Velocity and Junifer are two of the leading billing and customer management solutions in the sector, providing a full range of proven capabilities along with hosted and managed services options for new entrant energy and water suppliers, and larger utilities in competitive markets where flexibility, uniqueness and compliance are essential.

More information: www.gentrack.com

Veovo combines Gentrack’s Airport 20/20, BlipTrack and Concessionaire Analyzer+ software to unlock operational, revenue, concession and passenger insights across the airport ecosystem. The Veovo Predictive Collaboration Platform enables airports to operate more efficiently, uncover new growth opportunities and deliver outstanding guest experiences.

More information: www.veovo.com

Gentrack Group Ltd | www.gentrack.com | info@gentrack.com | ARBN 169 195 751