HANSEN TECHNOLOGIES LIMITED — AGM Information 2016

Nov 23, 2016

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2016 AGM Presentation 24 November 2016

AGENDA

1 CHAIRMAN’S ADDRESS 2 CEO’S PRESENTATION 3 FORMAL BUSINESS

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1

1 CHAIRMAN’S ADDRESS

DAVID TRUDE

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2

2016 Financial Summary

By any measure, 2016 was a very strong year

Revenue ($m)

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149.0
40%
106.3
86.0
2014 2015 2016
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NPATA[1] ($m)

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28.6
50%
19.1
15.9
2014 2015 2016
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EBITDA ($m)

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45.4
45%
31.3
24.1
2014 2015 2016
EPS [2] (c)
16.1
38%
11.6
9.9
2014 2015 2016
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1. NPATA = Net profit after tax excluding acquired amortisation 2. EPS based on NPATA

3

Dividends and Total Shareholder Return

Dividends (cents)

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7.0
6.0 6.0
2014 2015 2016
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FY2016 dividend includes 1.0 cent special dividend due to availability of franking credits

Total Shareholder Return (%) Hansen v S&P/ASX 300

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116%
Hansen
S&P/ASX 300
50%
20% 32%
6%
0%
2014 2015 2016
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TSR (Total Shareholder Return) is inclusive of dividends which are assumed to be reinvested

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4

Outperformance v S&P/ASX 300 Index

Over the past 2 financial years, Hansen’s share price appreciated 167% while the S&P/ASX 300 index declined 3%

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350
300
HSN
S&P/ASX300
250
200
150
100
50
0
Jun-14 Jul-14 Aug-14 Sep-14 Sep-14 Oct-14 Nov-14 Nov-14 Dec-14 Jan-15 Jan-15 Feb-15 Mar-15 Mar-15 Apr-15 May-15 Jun-15 Jun-15 Jul-15 Aug-15 Aug-15 Sep-15 Oct-15 Oct-15 Nov-15 Dec-15 Dec-15 Jan-16 Feb-16 Feb-16 Mar-16 Apr-16 May-16 May-16 Jun-16
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5

We are expanding our global presence …

75% of revenue is now derived offshore

Revenue by Region (A$m)

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160
140
120
100
80
60
40
20
0
2012 2013 2014 2015 2016
APAC Americas EMEA
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6

… and diversifying our revenue by sector

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Other
6%
Other
20% Energy
Energy 29%
66% Pay TV
25%
FY2011 FY2016
Telcos
14%
Water
7%
Telcos
32%
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7

2 CEO’S PRESENTATION ANDREW HANSEN

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8

About Hansen

• 40+ years in operation

• Leading global provider of billing and customer care solutions to 4 verticals: energy, water, telcos, Pay TV

• 800+ team members around the world

• ~200 customers in 45+ countries

• ~A$750m market capitalisation

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Revenue by Region Revenue by Vertical
Revenue FY16 Other
6%
APAC
$149m Energy
28%
29%
Pay TV
25%
EMEA
49%
94% CIS
EBITDA FY16
Water
7%
$45.4m
Americas
Telcos
24%
32%
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Hansen – a provider of billing and customer care solutions Our systems convert usage data into bills and manage customer interaction

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Our Energy Water Pay TV
Telcos ≈200 worldwide
customers providers companies operators
Usage data
Hansen CIS
Billing Customer Care
• Interprets and consolidates • Various modules manage the
usage data customer - including pricing and
•
Applies pricing to produce a bill quoting and customer
and manage payment acquisition
• Facilitates self-care
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10

Growth drivers of our business

• Deregulation Encourages new participants – who need systems Regulatory • Forces modifications and enhancements of systems change • Competition Encourages market differentiation – driving the need for more sophisticated and flexible systems • More services become available to more people – encouraging new participants Technology • Drives the refreshing of aging legacy billing systems • Smart Meters Increases billing complexity • Emerging A burgeoning middle class expands the user base of services – particularly in the telco & pay TV markets markets

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11

What makes us successful?

1 One core business We only do billing and customer care We have an exceptionally talented team of in-house industry experts with minimal staff 2 Great people turnover 3 Great products We have best of breed solutions 4 Self implementation We implement and support our own solutions Strong credibility and 5 We’ve been doing it for 40+ years referenceability 6 We own our IP Which is embedded at the very heart of our customers’ operations Which have always been within our core expertise, extended our footprint and 7 Strategic acquisitions integrated to the Hansen way

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12

Strategic acquisitions are a core part of our growth strategy

Peace

Nirvanasoft

CIS for large energy Complex billing retailers & distributors solution for US energy – US market entry providers

Banner

Water & energy CIS for US municipalities

Solutions

Billing & outsourcing solution for US energy retailers

HiAffinity

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Water CIS in the UK
and Australia
2007 2009 2011 2013 2015
2008 2010 2012 2014 2016
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ICC

Pay TV billing – a new vertical

TeleBilling

Quad-play CIS for European Telcos

Utilisoft

Market gateway for Australian energy market interaction

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Revenue (A$m)
149
106
86
54 58 58 57 64
32 39
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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We have 800+ staff spread across 15 offices

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Sonderborg
London
Hamburg
New York
Carlsbad Bethlehem & Hazelton
Atlanta
Columbia
Shanghai
Mumbai
Auckland
Johannesburg
Buenos Aires
Melbourne
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14

200 customers … with many Tier 1 / Tier 2 names

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Utilities Telcos Pay TV
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15

Long term vision

We are committed to growing our business and delivering value to shareholders by:

1 Servicing our existing customers exceptionally well 2 Investing in R&D to ensure we continue to have best of breed solutions 3 Increasing our recurring revenue streams 4 Increasing the level of cross skilling across our development teams 5 Developing our people and building systems to support our growth

Developing our people and building systems to support our growth Continued targeted strategic acquisitions to extend the Hansen footprint

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6
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We take a 10+ year view with what we do

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16

FY2016 Highlights

• Revenue growth of 40% and EBITDA growth of 45%

• including strong organic revenue growth from billing customers (excluding currency impact)

• 30.5% EBITDA margin – a result of above average staff utilisation

• $25.3m of free cash flow

• Debt fully repaid - $10m outstanding at the start of the year was repaid

• Strong performance of TeleBilling acquired 1 May 2015

• Expanding our presence in Europe, provides Quadplay billing to the Telco market

• A$28.8m of revenue in FY2016

• Exceeded expectations due to Hansen’s assistance with delivery of backlog revenue

• Acquisition of PPL Solutions effective 1 July 2016

• Provides a billing solution for retail energy consumers in the US via a SaaS model

• Also offers our clients a full business outsourcing solution including call centre management and debtor collection

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17

Outlook

• Solid start to FY2017 year:

• • Addition of MNC Media for PayTV – Indonesia’s largest Pay TV operator

• Strategic upgrade for Xcel Energy in the US – integrating our complex billing module to manage their commercial & industrial customers

• Sizeable projects underway or soon to start for a number of customers

• Acquisition of HiAffinity effective 1 November 2016:

• Provides water billing solutions to 15 customers in the UK, Australia, Africa and the Americas

• Expands our water billing presence from the US & builds upon our Energy/Telco presence in UK/Europe

• Ticks all our boxes in terms of acquisition strategy: (1) business is billing (2) owns its IP (3) has recurring revenue streams and (4) expands our expertise in a key market

• Easy to integrate – 31 technical staff located in London & Melbourne will relocate to Hansen’s offices

• Approximately A$5m annual revenue

• Guidance maintained for FY2017:

• Revenue in the range of $165m to $175m

• Continue to target an EBITDA margin between 25% and 30%

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18

3 FORMAL BUSINESS

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19

Accounts and Reports

PRESENTATION OF HANSEN TECHNOLOGIES FINANCIAL REPORTS

To table the financial report of the Company and its controlled entities and the related reports of the Directors and Auditors for the year ended 30 June 2016

• Shareholders may ask questions and make comments on the operations and management with regard to the Reports

• Shareholders may also ask the representative of the Company’s Auditor (Pitcher Partners) questions about the content and conduct of the audit

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20

Resolution 1

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 2016 as it appears in the Directors’ Report within the Annual Report 2016”

Proxy Votes Received

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FOR AGAINST OPEN
43,781,752 1,306,916 342,973
94.46% 2.82% 0.74%
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• Open votes totalling 342,973 (0.74%) in favour of the Chairman will be voted in favour of Resolution 1

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Resolution 2

RE-ELECTION OF MS SARAH MORGAN

“That Ms Sarah Morgan, a Director retiring by rotation in accordance with the Company’s Constitution and being eligible and having signified her candidature for Office, be and is hereby reelected a Director of the Company.”

Proxy Votes Received

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FOR AGAINST OPEN
83,572,106 103,330 481,121
98.30% 0.12% 0.57%
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• Open votes totalling 481,121 (0.57%) in favour of the Chairman will be voted in favour of Resolution 2

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22

Resolution 3

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 reelected a Director of the Company.”

Proxy Votes Received

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FOR AGAINST OPEN
77,127,534 6,071,826 516,909
91.13% 7.17% 0.61%
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• Open votes totalling 516,909 (0.61%) in favour of the Chairman will be voted in favour of Resolution 3

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23

Thank you for attending Please join the Directors and Staff for refreshments

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