HANSEN TECHNOLOGIES LIMITED — AGM Information 2012

Nov 21, 2012

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Hansen Technologies
Annual General Meeting
22 [nd] November 2012
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© Hansen Technologies 2009. May contain proprietary and confidential information. Not for distribution without permission.

Introduction – David Trude Chairman of the Board

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• Founded an offsite computer tape storage business over 30 years ago after leaving the Army

• The business has evolved into an IT services business with

• An extensive range of IT outsourcing services

• Outsourced facilities management

• Proprietary software solutions supporting the Energy and Telecommunications industries

• Employing in excess of 250 staff

• Hansen Technologies was publicly listed on the ASX in 2000

• Chairman for 11 years until retirement in August 2011

Hansen market value

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$A millions
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
2008 2009 2010 2011 2012
Market Capitalisation
Enterprise value
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Hansen shareholder participation

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3,500 100.0%
3,000
90.0%
2,500
80.0%
2,000
1,500
70.0%
1,000
60.0%
500
0 50.0%
2008 2009 2010 2011 2012
No of shareholders % held by top 20
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Key investment metrics �Shares On Issue 159 Million	Key investment metrics �Shares On Issue 159 Million	Key investment metrics �Shares On Issue 159 Million	Key investment metrics �Shares On Issue 159 Million
	�Shares On Issue	159 Million
	�Share Price - 21 November 2012	$0.92
	�Market Capitalisation	$146 Million
	�Enterprise Value	$122 Million
	�Dividend - FY2012	6 Cents
	�Dividend Yield –(Franked to 66.6%)	6.6%
	�EBITDA - FY2011/12	$19.2 Million
	�EBITDA Multiple	6.25
	�Nt Prfit Aftr Tx - FY 2011/12	$129 Millin
	e o e a	. o
	�EPS	8.1 Cents
	�PE Multiple	11.3

CEO/Managing Director’s commentary

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Fiscal 2012 experienced a continuation of the unstable economic circumstances world wide:

• Political and sovereign instability internationally continued especially in the EEC

• Resulting in heightened nervousness for customer’s major capital expenditure programmes resulting in a longer sale and evaluation cycle

• New customers are far more risk averse

• The continuation of historically high values for the $A has resulted in lower revenues when designated in $A and a higher cost to serve for Hansen

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Performance

• Consolidated revenue during $A appreciation

Operating Revenue $56.6 million

• Increased international investment

Financial Strength

• Continue to be debt free

• Working capital improved 26%

EBITDA $19.2 million

• Dividend maintained at 6 cents

Well positioned for 2013

• Increasing Sales Investment

• � Continuing to evaluate strategic opportunities for expansion

After-tax profit $12.9 million

Consolidated Performance

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• Maintained a path and culture to deliver ROI

• Maintained the operational efficiencies previously generated

• Delivered projects within budgeted targets

• Invested in our products to serve industry driven change

• Extended the process of increased investment in sales activity

• Delivered enhanced value to customers

• Extended our core competencies

• Expanded our consulting activities

• Provided thought leadership

• Sustained a strong annuity revenue stream model

• As with last year, we have pursued strategic growth, but struggled to find fairly valued earnings accretive propositions in our industry sectors

• Maintained our dividend distribution and preserved cash resources to provide Capital to fund growth

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Hansen Target Markets for Software
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TELECOM
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Customer care and billing solutions

ENERGY

Customer care, billing and meter data management solutions

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Electric, Gas, & Water Utilities
Regulated Markets Competitive Markets
Mid-tier •Smaller Competitive retailers
MVNOs
retailers Large
regulated Meter
utilities Integrated Utilities Transitioned Incumbent Mass Commercial Distribution network Data
•Municipals (IOUs) Utilities Retail Market & Industrial Provider
Retail
•Co-ops
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HOSTING & PROFESSIONAL SERVICES

• Purpose built data center facilities - Application management -IT Managed services

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Utilities:

• Trend toward “smart meter” rollout continues globally

• Starting to see new tariffs for “time of use” billing

• Deregulation and disaggregation drives business change

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• Significant proportion of systems are still in-house developed or aging legacy systems

• Very few vendors have both a CIS and MDM solution

Telecom:

• Significant competition drives companies to implement novel packages to reduce customer churn

• Highly fragmented markets require innovative and quick-todeploy solutions

• Significant proportion of systems are still in-house developed or aging legacy systems

North America Europe Asia / Pacific

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Our company

• Our customer engagement model offers greater flexibility around commercials, access to management, and enables unique solutions

• With a best-of-breed focus we have deep expertise and knowledge

• � We have 20+ years in this industry and over 300 utilities/telecoms experts

Our Services

• With specialist implementation services and hosting options we can expedite a lower-risk outcome

• We have a strong track record for delivering mission-critical solutions in tight timeframes

• As the solution developer we are best-placed to offer deep expertise throughout the solution lifecycle – from implementation to support

Our Solutions

• Our solution is proven in over 40 markets worldwide

• We are one of only a few global CIS (& MDM) providers

• Our solutions are world-class, but for a lower cost

Continue to pursue performance improvement and growth within 4 broad objectives;

• Existing customers

• Constantly strive to expand our product value proposition

• Provide valued advisory consulting

• Look to deliver more of Hansen to each customer

• New Customers

• Increased sales and marketing investment

• Look to target specific markets, especially international

• Capitalise on existing partnering/distributor channels

• New and enhanced products/services

• Continue to add new functionality to existing offerings

• Adapt services provided to market driven requirements

• � Develop and maintain products to deliver to industry and technology driven change, e.g. smart grid, interval meters

• Relevant Acquisitions

• Continue to explore the acquisition of compatible businesses and products, especially internationally

• � Maintain patience and caution

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• Half year to December 2012

• lower operating performance as a result of quieter new business market

• we have invested in delivery capacity for new projects

• We are seeing a re-emerging customer interest for new billing systems in North America

• The high Australian $ represents an opportunity to invest internationally in synergistic acquisitions at favourable rates.

• Full year outlook

• Given slow start to the year expect to deliver within 15% of last year

• At this level of profitability we would expect to maintain dividends at current levels.

Resolutions

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Adoption of Director’s Remuneration Report:

• ‘In accordance with the requirements of the Corporations Act, adopt the Remuneration Report for the year ended 30 June 2012 as it appears in the Directors’ Report within the Annual Report 2012.’

Proxies received

• In favour of the resolution

• 137 Shareholders representing 88.7 % of shares voted by proxy

• 41 shareholders representing 2.7 % of shares voted by proxy have allocated their proxies to the Chairman who will vote these proxies in favour

• Collectively totalling 91.4% of the shares voted by proxy and comprising 14,378,549 shares

• Against the resolution

• 71 shareholders representing 4.8 % of shares voted by proxy

• Comprising a total of 752,147 shares

Re-election of Mr. David Osborne:

• ‘That Mr. David Osborne, a Director retiring by rotation in accordance with the Company’s Constitution and being eligible and having signified his candidature for Office, be and is hereby re-elected a Director of the Company.’

Proxies received

• In favour of the resolution

• 223 Shareholders representing 98.9 % of the shares voted by proxy

• 44 shareholders representing 0.45 % of shares voted by proxy have allocated their proxies to the Chairman who will vote these proxies in favour

• Collectively totalling 99.35% of the shares voted by proxy and comprising 107,262,921 shares

• Against the resolution

• 6 shareholders representing 0.05 % of shares voted by proxy

• Comprising a total of 57,632 shares

Election of Ms. Melinda Osborne:

• ‘

• � That Ms. Melinda Osborne, a Director appointed by the Board effective 15 October 2012 until this annual general meeting of the Company in accordance with the Company’s Constitution and being eligible and having signified her candidature for Office, be and is hereby elected a Director of the Company.’

Proxies received

• In favour of the resolution

• 208 Shareholders representing 98.7 % of the shares voted by proxy

• 44 shareholders representing 0.45 % of shares voted by proxy have allocated their proxies to the Chairman who will vote these proxies in favour

• Collectively totalling 99.15% of the shares voted by proxy and comprising 107,380,122 shares

• Against the resolution

• 26 shareholders representing 0.26 % of shares voted by proxy

• Comprising a total of 284,212 shares

Grant of options to Chief Executive:

• ‘That 1,050,000 options be issued to the Chief Executive/Managing Director in accordance with the Hansen Employee Option Plan on the terms and conditions set out in the Explanatory notes.’

Proxies received

• In favour of the resolution

• 124 Shareholders representing 55.37 % of shares voted by proxy

• 41 shareholders representing 2.7 % of shares voted by proxy have allocated their proxies to the Chairman who will vote these proxies in favour

• Collectively totalling 58.07% of the shares voted by proxy and comprising a total of 9,780,382 shares voted

• Against the resolution

• 102 shareholders representing 38.42 % of shares voted by proxy,

• Comprising a total of 6,485,714 shares

Thank you for your attendance Please join the Directors and Staff for refreshments

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