HANSEN TECHNOLOGIES LIMITED — AGM Information 2022

Nov 23, 2022

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24 November 2022

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IMPORTANT NOTICE

This presentation has been prepared by Hansen Technologies Limited (Hansen)

Definitions:

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 offer or invitation for subscription, purchase, or recommendation of securities in Hansen.

• FY21= financial year ended 30 June 2021

• FY22 = financial year ended 30 June 2022

• Reported EBITDA* = Earnings before interest, tax, depreciation and amortisation, excluding net foreign exchange gains (losses)

• Underlying EBITDA* = Earnings before interest, tax, depreciation and amortisation, excluding net foreign exchange gains (losses), not including non-recurring items

• Should be read in conjunction with Hansen's financial reports and market releases on ASX.

• Includes forward-looking statements about Hansen and the environment in which Hansen operates, which are subject to significant uncertainties and contingencies, many of which are outside the control of Hansen – as such undue reliance should not be placed on any forward-looking statements as actual results or performance may differ materially from these statements.

• NPAT = Net profit after tax

• NPATA* = Net profit after tax excluding tax effected amortisation of acquired intangibles and non-recurring items

• EPSa = Earnings per share on NPATA

• EBITDA, EBIT, NPATA, Recurring revenue and Non-recurring revenue are non-IFRS measures that have not been audited or reviewed by Hansen’s auditors.

• Includes statements relating to past performance, which should not be regarded as a reliable guide to future performance.

• Includes certain financial information not recognised under IFRS which Hansen considers useful to assist in evaluating Hansen’s performance – however, such information has not been subject to audit or review in accordance with Australian Auditing Standards.

All dollar values are in Australian dollars (A$) unless otherwise stated.

BOARD OF DIRECTORS & COMPANY SECRETARY

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Outlined below are the Hansen Board of Directors and the Company Secretary. Details of each Director’s qualifications, experience and special responsibilities are set out in the 2022 Annual Report.

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David Trude

Chairman

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Don Rankin

Non-Executive Director

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Andrew Hansen

Managing Director Chief Executive

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David Howell

Non-Executive Director

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Bruce Adams

Non-Executive Director

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Lisa Pendlebury Non-Executive Director

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David Osborne

Non-Executive Director

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Julia Chand

General Counsel Company Secretary

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AGM 2022 Presentation

AGENDA

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1. Chairman’s Address
2. CEO Presentation
3. FY23 and Beyond
4. Formal Business
5. Q&A
4 AGM 2022 Presentation
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CHAIRMAN’S ADDRESS

FY22 FINANCIAL SUMMARY

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Revenue [1] Underlying EBITDA [1] Underlying NPATA [1]
$296.5m $100.3m $58.2m
3.4% 1.1% 6.2%
Adjusted EPSa [1,3] Dividend Net Debt [5]
7¢ interim paid [4]
29.0¢ 12.0¢ + 5¢ final $28.8m
5.4% 20.0% 56.7%
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Notes:

1.These metrics are presented after adjusting the FY21 full year result for the impact of the initial Telefonica licence ($21M).

2.Underlying NPATA = Net profit after tax excluding tax effected amortisation of acquired intangibles and non-recurring items.

3.Underlying Basic EPSa, based on NPATA: 5.4% improvement is based on EPSa against prior period after adjusting for the Telefonica license. 4.Includes 2c special dividend.

5.Net Debt borrowing (excluding pre-paid costs and IFRS16) less cash.

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AGM 2022 Presentation

FY22 FINANCIAL OVERVIEW

Outperforming our Small Ords Index

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Robust Financials and Returns

EPSa Growth up 70% since 2019

Consistent free cash flow has delivered an improved return to shareholders over the same period.

Debt Levels down $122m since 2019

A strong balance sheet places the business in a great position to responsibly leverage the business to take advantage of growth opportunities.

57% of NPAT returned to shareholders during FY22

Management’s equity holdings align outcomes to long term shareholder value.

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AGM 2022 Presentation

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CEO ADDRESS

FY22 KEY INITIATIVES & PROGRESS

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• 1 Closed the largest new logo in Hansen's history

• 2 Won significant tendered business from Tier One competitors

• 3 Expanded our Global footprint and workforce

• 4 Rapidly paid down debt and 'reset' our balance sheet

• 5 Strengthened our Executive leadership team and added more depth and bench strength

• 6 Distributed a record dividend to our Shareholders

• 7 Formalised and embraced our flexible working arrangements

• 8 Delivered our inaugural ESG report

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AGM 2022 Presentation

STRONG PERFORMANCE DESPITE HEADWINDS

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Revenue ($M)[1]

Underlying EBITDA[2] ($M)

Underlying NPATA[3] ($M)

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5.4%
1.1%
3.4%
21.0 18.3
99.2 100.3 54.8 58.2
85.7 46.9
49.7 51.0 66.7 63.1 28.6 28.0 38.7 33.7
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22
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• After adjusting for Telefonica revenue growth of 3.4% delivered for the full year.

• A combination of customer upgrades and new business contributing to growth.

• Underlying EBITDA at 34% for the full year.

• Effective tax rate is lower than expected with higher level of profit in tax jurisdictions allowing accelerated use of tax losses.

• New deal momentum delivering revenue into FY23.

• Growth continuing across multiple regions.

Notes:

1. These numbers are presented after adjusting the FY21 full year result for the impact of the initial Telefonica licence ($21M).

2. FY22 underlying EBITDA excludes $306k of non-recurring items; currency impact of $2.4m.

3. Underlying NPATA = net profit after tax excluding tax effected amortisation of acquired intangibles and non-recurring items of $306k.

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AGM 2022 Presentation

CONTINUED POSITIVE CASH GENERATION

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EPSa[1] (Cents)

Net Debt[2] ($M)

DPS (Cents)

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5.4%
9.2 2.0
2.0
5.0 5.0
1.0 1.0
23.9 27.5 29.0 151.4 -56.7% 3.0 3.0 3.0 3.0 5.0
16.6 15.6 19.8 17.1 116.5 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 FY21 FY22
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• 57% of Net Profit after Tax returned to shareholders in the form of dividends.

• Hansen performing well against the S&P Small Ordinaries Index.

• Shareholders not subject to calls on capital to run the business.

• Strong sustainable cash flows enabling significant reduction in net debt.

• Strong capital structure and liquidity position supports current dividend strategy.

• Significant debt available to fund future strategic targets.

• Full year dividend of 12c includes a special of 2c returning cash to investors.

Notes:

Underlying Basic EPSa, based on NPATA: 5.4% improvement is based on EPSa against prior period after adjusting for the Telefonica license. Net Debt excluding AASB 16 lease liabilities and pre-paid borrowing costs.

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AGM 2022 Presentation

A RESILIENT COMPANY DELIVERING ON A GLOBAL SCALE

Regions and number of staff

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UK & Nordics
Canada
Ireland
54 252
171
Europe
India
113
USA 160 379
China Japan, 1
27
Mexico, 1
Vietnam
169
Australia
Brazil, 7 179
Indonesia, 4
NZ
42
SA
Argentina 15
34
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Total FTE 1,600+ Customers (Tier 1 & 2) 600+ Countries 80+

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Revenue by vertical
50.3% 49.7%
Energy and Utilities
Communications
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Our diversity across geography, currency, product and industry ensures we remain resilient and robust in challenging times whilst leveraging our global platform for future sales and acquisitions.

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AGM 2022 Presentation

FY22 WAS A YEAR OF SIGNIFICANT PROGRESS

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Sustained success with new logos and existing customer expansion

New logo wins, product expansion and renewals

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Exelon, the largest utility provider in America, was the largest win on record ($25m USD)

Energy Queensland signed a $45m upgrade with our CIS platform

Additional contract term of 3 years signed with Essential Energy

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Ongoing regional expansion

Fortum in EMEA expanded into new regions with Hansen and we now provide mission critical support in Norway, Finland and Sweden

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Continued investment in our products and security

To support our existing customers for future expansion we continue to invest in our fleet of products and services

Our investments enable us to further leverage our strong relationships with customers and make our systems even easier to integrate for new logo wins We take security very seriously and manage it very carefully by continuingly investing heavily to maintain the security of our suite of products

Average 10+ years customer relationships, less than 2% churn

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AGM 2022 Presentation

FY22 WAS A YEAR OF SIGNIFICANT PROGRESS

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Expanded our global footprint to meet the demands of our clients and opportunities

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We added depth to our strong and experienced Hansen bench to ensure we have the best mix of talent to service current and future pipeline

• As a stable profitable business, we believe we offer significant appeal in an increasingly unstable world

We expanded our talent centers in India, Vietnam and Argentina by circa 20% during FY22 to provide bench strength and capacity for future growth

• This growth is continuing into FY23, with a very strong talent base joining in Argentina in particular

We implemented permanent hybrid way of working enabling us to employ the right person, not just a person in the right place

• More than 60 graduates welcomed

• Continued investment to foster stronger, more diverse and inclusive culture

• Significant internal and external new staff appointments made

• Record year of investment in R&D of products and solutions

• Dedicated Learning and Development team and platform

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AGM 2022 Presentation

FY22 WAS A YEAR OF SIGNIFICANT PROGRESS

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Continued investment in our people, communities and the environment to ensure we have the most sustainable and purposeful way forward

To mark our 50 years of business, conceived 50 Acts of Impact

Designed to encourage our people to make meaningful, long-lasting and purposeful impacts

Recognises the global diversity of our people, the communities we live in, and the different ways we can help make an impact

FY22 saw formalisation of our corporate sustainability efforts

Inaugural report focused on pillars of:

• Customers and Partners

• People and Communities

• Environment

• Governance addressed in broader Annual Report

Carbon offsets purchased tCO -e 5,564 2

Customer relationships

Av.10+ years

Notifications to privacy regulators

70% positive engagement

83% positive inclusivity sentiment 80% positive sentiment around wellbeing

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Diversity
31% 69%
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Zero

60+ Languages Spoken

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AGM 2022 Presentation

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FY23 AND BEYOND Our Outlook

FY23 AND BEYOND

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Our outlook remains robust during a challenging global period

• With more opportunities coming to market our dedicated M+A Team is busy assessing those that have the potential to deploy Hansen’s capital to generate the best possible outcome for shareholders

• As the global cost of capital is increasing, we expect new acquisition opportunities to present themselves with more realistic valuation multiples

• Recognising the sizable market opportunities, our CFO, Graeme Taylor, is moving to EMEA in January, to further develop our M&A pipeline

• We are founder-led, we treat shareholder money like it's our own, because it is

• We focus on cash generation first and foremost both with our existing business and with potential acquisitions

• We invest heavily in our products and staff to ensure clients love working with us and have no reason to leave

• Our financial outlook is robust and we are committed to delivering value to our shareholders

FY23 Revenue

3-5%

EBITDA Margin +30%

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AGM 2022 Presentation

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FORMAL BUSINESS Shareholder Resolutions

CONSIDERATION OF ACCOUNTS AND REPORTS

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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 2022 and to provide members with the opportunity to raise any issues or ask any questions generally of the Directors.

Shareholders may ask questions and make comments on the operations and management with regards to the Reports.

Shareholders may also ask the representatives of the Company’s Auditor (RSM Australia Partners) questions about the content and conduct of the audit.

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AGM 2022 Presentation

RESOLUTION 1: ADOPTION OF DIRECTORS’ REMUNERATION REPORT

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In accordance with the requirements of the Corporations Act, adopt the Remuneration Report for the year ended 30 June 2022 as it appears in the Directors’ Report within the Annual Report 2022.

Prox Votes received y

FOR	OPEN1	AGAINST	ABSTAIN
86,104,229	1,187,697	13,025,620	84,266
85.83%	1.18%	12.98%

Note: 1.

Open votes in favour of the Chairman will be voted in favour of the resolution

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AGM 2022 Presentation

RESOLUTION 2: RE-ELECTION OF MR BRUCE ADAMS

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That Mr Bruce Adams, a Director retiring 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.

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Prox Votes received y

FOR	OPEN1	AGAINST	ABSTAIN
113,682,050	1,245,432	21,694,490	15,058
83.21%	0.91%	15.88%

Note: 1.

Open votes in favour of the Chairman will be voted in favour of the resolution

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AGM 2022 Presentation

RESOLUTION 3: ELECTION OF MS LISA PENDLEBURY

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That Ms Lisa Pendlebury, a Director appointed by the Board effective from 1 March 2022 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.

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Prox Votes received y

FOR	OPEN1	AGAINST	ABSTAIN
135,336,300	1,246,709	38,963	15,058
99.06%	0.91%	0.03%

Note: 1.

Open votes in favour of the Chairman will be voted in favour of the resolution

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AGM 2022 Presentation

RESOLUTION 4: GRANT OF PERFORMANCE RIGHTS TO CEO / MANAGING DIRECTOR MR ANDREW HANSEN

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FOR THE FINANCIAL YEAR ENDING 30 JUNE 2023

That for the purposes of Listing Rule 10.14 and for all other purposes, Shareholders approve the grant of 141,714 Performance Rights to Mr Andrew Hansen under the Hansen Technologies Limited Incentive Performance Rights Plan on the terms and conditions set out in the Explanatory Notes.

Prox Votes received y

FOR	OPEN1	AGAINST	ABSTAIN
89,993,499	1,191,834	10,007,557	222,453
88.93%	1.18%	9.89%

Note: 1.

Open votes in favour of the Chairman will be voted in favour of the resolution

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AGM 2022 Presentation

RESOLUTION 5: NON-EXECUTIVE DIRECTORS’ REMUNERATION

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That for the purposes of Listing Rule 10.17 the maximum aggregate amount of remuneration to be paid to all non-executive Directors in any financial year be increased from $750,000 to $780,000 per annum.

Prox Votes received y

FOR	OPEN1	AGAINST	ABSTAIN
99,026,788	1,197,295	549,741	102,880
98.27%	1.19%	0.55%

Note: 1.

Open votes in favour of the Chairman will be voted in favour of the resolution

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AGM 2022 Presentation

RESOLUTION 6: RE-ADOPTION ON THE PERFORMANCE RIGHTS PLAN

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That for the purposes of Listing Rule 7.2 (Exception 13(b)) and for all other purposes, Shareholders approve the re-adoption of the Company’s incentive scheme titled ‘Hansen Technologies Limited Incentive Performance Rights Plan’, on the terms and conditions set out in the Explanatory Notes.’

Prox Votes received y

FOR	OPEN1	AGAINST	ABSTAIN
134,217,358	1,187,489	607,593	624,590
98.68%	0.87%	0.45%

Note: 1.

Open votes in favour of the Chairman will be voted in favour of the resolution

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AGM 2022 Presentation

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Q&A

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THANK YOU

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