HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2015

Feb 25, 2015

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

PROVIDED TO THE ASX UNDER LISTING RULE 4.2A.3

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2014.

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Rule 4.2A.3

Appendix 4D Half Year Report for the six months to 31 December 2014

Hansen Technologies Ltd and its Controlled Entities

ABN: 90 090 996 455

1. Reporting period

1. Reporting period
Report for the half year ended:	31 December 2014
Previous corresponding periods:	Financial year ended 30 June 2014
	Half-year ended 31 December 2013

2. Results for announcement to the market

	$A’000	$A’000
Revenues from ordinary activities Net profit after tax attributable to members	Up 19% to 49,169 Up 22% to 8,820
	Amount per security	Franked amount per security
Interim Dividend Declared
Interim dividend for the 2015 fiscal year	3¢	2.5¢
Interim dividend for previous corresponding period	3¢	2.5¢
Record date for determining entitlements to the dividend	10 March 2015
Previous Final Dividend Paid
Final dividend for the year ended 30 June 2014	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢

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The Group operating result for the half year to 31 December 2014 was:

• Operating revenue of $49.2 million

• EBITDA of $15.9 million

• Net Profit after tax of $8.8 million

• Earnings per share of 5.4 cents, up 0.9 cents per share or 20% from the 4.5 cents per share in the previous corresponding period

The Directors of Hansen have declared a consistent 3 cents per share interim dividend with:

• 2.5 cents per share fully franked

• 0.5 cents per share unfranked

• a record date of 10 March 2015

• payment on 27 March 2015

• the conduit foreign income component of this interim dividend is Nil

• the application price for shares issued in accordance with the Company’s Dividend Reinvestment Plan will be the full undiscounted value

NOTE: Shareholders wishing to participate in the Dividend Reinvestment Plan need to have lodged the required DRP Notice with the Company’s Share Registry by no later than 5.00pm on the business day immediately following the record date. Accordingly the last date for DRP election in respect to this interim dividend is 11 March 2015.

Results from Operations for the half-year ended 31 December

	Half-year to Dec 2013 $A million	Half Year to Dec 2014 $A million	Variance
Operatingrevenue	41.2	49.2	up19%
EBITDA	11.2	15.9	up 42%
Profit before tax	9.1	12.5	up37%
Income tax expense	(1.9)	(3.7)	up95%
Netprofit after tax	7.2	8.8	up22%
Earningsper share	4.5 cents	5.4 cents	up20%

We are pleased to be announcing a strong performance for the first half of this year.

Our results include for the first time a full six month contribution from the Banner business that was acquired in May 2014. This acquisition, coupled with organic growth in our core Billing Systems business, has underpinned the strong increase in both operating revenue and profit over the previous corresponding period. Our increased focus on sales and marketing is gaining further traction with new contract wins in the Utilities and the Pay TV industry verticals achieved during the first half.

The decline of the Australian Dollar against the US Dollar has also had a positive impact on our results, though this is somewhat muted at the profit line as a significant portion of our costs are now based offshore.

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With the integration of the Banner business successfully completed, this strategic acquisition has added significant capability to our platform in the US, and enhanced our opportunities for growth in the North American utilities market.

We will continue to execute on our strategic acquisition programme, which remains focused on businesses aligned to our core, and transactions that will create additional shareholder value.

	Immediately preceding half-year $A million	Current fiscal year 2014/15 $A million
	Half year to June 2014	Half year to December 2014	Variance
Operating revenue	44.8	49.2	up 10%
EBITDA	12.9	15.9	up 23%
Profit before tax	10.4	12.5	up20%
Income tax expense	(2.8)	(3.7)	up32%
Netprofit after tax	7.6	8.8	up16%
Earningsper share	4.7 cents	5.4 cents	up15%

Our strong start to the first half of the financial year has been encouraging and we reiterate our guidance for the full year of operating revenue in excess of $95m. We continue to target an EBITDA margin in the range of 25-30% for the full year, and believe we can achieve a result towards the top end of that range if trading conditions remain favourable.

3. Net tangible assets per security

. Net tangible assets per security
Net tangible asset backing per ordinary security	Current period	Previous corresponding period(30 June 2014)
	3.0 cents	-1.9 cents

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4. Dividends

. Dividends
Three cent interim dividend - year ended 30 June 2014 Three cent final dividend - year ended 30 June 2014	Date of payment	Total amount of dividend
	28 March 2014	$4,817,174
	30 September 2014	$4,874,390

Amount per security

Amount per security
	Amount per security	Franked amount per security at 30% tax	Amount per security of foreign sourced dividend
Total dividend: Current year (interim) Previous year (final) Previous year(interim)	3¢	83%	0¢
	3¢	100%	0¢
	3¢	83%	0¢

Total dividend on all securities paid during the half-year

Ordinary securities Total	December 2014 $A'000	December 2013 $A'000
	4,874	4,808
	4,874	4,808

5. Details of dividend or distribution reinvestment plans in operation are described below:

A Dividend Reinvestment Plan has been established to provide shareholders with the opportunity to reinvest dividends in new shares rather than receiving cash. The directors may alter, suspend or terminate the terms of the Dividend Reinvestment Plan at any time.

The last date(s) for receipt of election notices for participation in the dividend or distribution reinvestment 11 March 2015 plan

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6. The financial information provided in the Appendix 4D is based on the half year condensed financial report (attached).

7. Independent review of the financial report

The financial report has been independently reviewed. The financial report is not subject to a modified independent auditors review statement.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD

ABN 90 090 996 455

AND CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2014

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2014.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED

31 DECEMBER 2014

TABLE OF CONTENTS

TABLE OF CONTENTS
	Page
Directors' Report	3-4
Auditor’s Independence Declaration	5
Financial Report for the half year ended 31 December 2014
Condensed Consolidated Statement of Comprehensive Income	6
Condensed Consolidated Statement of Financial Position	7
Condensed Consolidated Statement of Changes in Equity	8
Condensed Consolidated Statement of Cash Flows	9
Notes to the Financial Statements	10-13
Directors' Declaration	14
Independent Auditor's Review Report	15-16

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Directors Report

The Directors present their report together with the condensed financial report of the consolidated entity consisting of Hansen Technologies Ltd and the entities it controlled, for the half-year ended 31 December 2014 and independent review report thereon. This financial report has been prepared in accordance with AASB 134 Interim Financial Reporting.

Directors Names

The names of the Directors in office at any time during or since the end of the half-year are:

Name	Period of Directorship
Mr David Trude	Chairman since 2011
Mr Andrew Hansen	Managing Director since 2000
Mr Bruce Adams	Director since 2000
Mr Peter Berry	Director since 2012
Ms Sarah Morgan	Appointed 1 October 2014
Mr David Osborne	Director since 2006
Ms Melinda Osborne	Director since 2012. Resigned
	26 August 2014.

The Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Review of Operations

The consolidated profit of the group for the half-year after providing for income tax amounted to $8,820,435 representing a 22% increase on the $7,237,963 in the previous corresponding period.

• The group operating result for the half year to 31 December 2014 comprised: - Operating revenue of $49.2 million, a 19% increase over the previous corresponding period; and - EBITDA of $15.9 million, up 42% on the previous corresponding period.

The Directors of Hansen have declared a consistent 3 cents per share interim dividend with 2.5 cents per share fully franked and 0.5 cents per share unfranked.

We are pleased to be reporting an improved performance for the first half of the 2015 Financial Year.

Our results include for the first time a full six month contribution from the Banner business that was acquired in May 2014. This acquisition, coupled with organic growth in our core Billing Systems business, has underpinned the strong increase in both operating revenue and profit over the previous corresponding period. Our increased focus on sales and marketing is gaining further traction with new contract wins in the Utilities and the Pay TV industry verticals achieved during the first half.

The decline of the Australian Dollar against the US Dollar has also had a positive impact on our results, though this is somewhat muted at the profit line as a significant portion of our costs are now based offshore.

With the integration of the Banner business successfully completed, this strategic acquisition has added significant capability to our platform in the US, and enhanced our opportunities for growth in the North American utilities market.

We will continue to execute on our strategic acquisition programme, which remains focused on businesses aligned to our core, and transactions that will create additional shareholder value.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Significant Changes in the State of Affairs

There have been no significant changes in the company's state of affairs during the half-year.

Auditor's Declaration

A copy of the auditor’s declaration as required under section 307C of the Corporation Act 2001 in relation to the review for the half-year is provided with this report.

Rounding of Amounts to Nearest Thousand Dollars

The amounts contained in the report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the Directors:

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David Trude Director

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Andrew Hansen Director

Dated this 26th day of February 2015

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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Auditor's Independence Declaration

To the Directors of Hansen Technologies Ltd.

In relation to the independent auditor's review for the half-year ended 31 December 2014, to the best of my knowledge and belief there have been:

(i) No contraventions of the auditor independence requirements of the Corporations Act 2001.

(ii) No contraventions of any applicable code of professional conduct.

This declaration is in respect of Hansen Technologies Ltd and the entities it controlled during the period.

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S D WHITCHURCH Partner 26 February 2015

An independent Victorian Partnership ABN 27 975 255 196 Liability limited by a scheme approved under Professional Standards Legislation

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PITCHER PARTNERS Melbourne

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Comprehensive Income For the Half Year Ended 31 December 2014

Revenue from continuing operations Net foreign currency gains Other income Total revenue and other income Employee expenses Amortisation expense Depreciation expense Finance costs Property and operating rental expenses Contractor and consultant expenses Software licence expenses Hardware and software expenses Travel expenses Communication expenses Professional expenses Other expenses Total expenses Profit before income tax expense Income tax expense Profit after income tax from continuing operations Other comprehensive income Items that may be reclassified subsequently to profit and loss Exchange differences on translation of foreign operations 2 Other comprehensive income for the half-year Basic earnings (cents) per share for continuing operations Total basic earnings (cents) per share Diluted earnings (cents) per share for continuing operations Total diluted earnings (cents) per share Total comprehensive income attributable to members of the parent	Half-year to Dec	Half-year to Dec
	2014	2013
	$'000	$'000
	49,169 515 147	41,247 333 243
	49,831	41,823
	(25,852) (2,400) (808) (177) (2,093) (735) (394) (1,520) (1,733) (532) (583) (507)	(22,859) (1,359) (745) - (2,110) (843) (197) (1,405) (1,047) (354) (423) (1,340)
	(37,334)	(32,682)
	12,497 (3,677)	9,141 (1,903)
	8,820	7,238
	6,156	820
	6,156	820
	14,976	8,058
	5.4	4.5
	5.4 5.3	4.5 4.4
	5.3	4.4

The accompanying notes form part of the financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Financial Position As at 31 December 2014

Current Assets Cash and cash equivalents Receivables Other current assets Total Current Assets Non-Current Assets Plant, equipment & leasehold improvements 5 Intangible assets Deferred tax assets Total Non-Current Assets Total Assets Current Liabilities Payables Borrowings 6 Current tax payable Provisions Deferred revenue Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities Total Liabilities Net Assets Equity Share capital Foreign currency translation reserve Share based payment reserve Retained earnings Total Equity	Dec-14	Jun-14
	$'000	$'000
	5,757 13,602 2,591	3,829 14,701 5,309
	21,950	23,839
	5,307 73,492 149	4,376 68,774 448
	78,948	73,598
	100,898	97,437
	3,595 2,000 2,071 7,115 7,382	5,006 10,055 1,061 6,973 8,133
	22,163	31,228
	148	123
	148	123
	22,311	31,351
	78,587	66,086
	47,416 4,050 857 26,264	45,126 (2,106) 748 22,318
	78,587	66,086

The accompanying notes form part of the financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2014

Consolidated Balance as at 1 July 2014 Profit for the half-year Exchange differences on translation of foreign operations Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Dividends paid 3 Total transactions with owners in their capacity as owners Balance as at 31 December 2014 Consolidated Balance as at 1 July 2013 Profit for the half-year Exchange differences on translation of foreign operations Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Dividends paid 3 Total transactions with owners in their capacity as owners Balance as at 31 December 2013	Half-year to Dec	Half-year to Dec	Half-year to Dec	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	45,126 - -	(1,358) - 6,156	22,318 8,820 -	66,086 8,820 6,156
	-	6,156	8,820	14,976
	1,189 - 1,101 -	- 109 - -	- - - (4,874)	1,189 109 1,101 (4,874)
	2,290	109	(4,874)	(2,475)
	47,416	4,907	26,264	78,587
	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	43,650 - -	(925) - 820	17,142 7,238 -	59,867 7,238 820
	-	820	7,238	8,058
	337 - 361 -	- 102 - -	- - - (4,808)	337 102 361 (4,808)
	698	102	(4,808)	(4,008)
	44,348	(3)	19,572	63,917

The accompanying notes form part of the financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2014

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2014
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Finance costs Income tax paid Net cash provided by operating activities Cash flows from investing activities Payment for plant and equipment Payment for capitalised development costs Net cash used in investing activities Cash flows from financing activities Proceeds from options exercised Dividends paid net of dividend re-investment Repayment of borrowings Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of half-year Cash and cash equivalents at end of the half-year	Half-year to Dec
	2014	2013
	$'000	$'000
	52,485 (33,925) 10 (177) (2,368)	46,777 (34,280) 89 - (1,960)
	16,025	10,626
	(1,668) (1,789)	(422) (1,598)
	(3,457)	(2,020)
	1,189 (3,774) (8,055)	337 (4,446) -
	(10,640)	(4,109)
	1,928 3,829	4,497 9,653
	5,757	14,150

The accompanying notes form part of the financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Notes to the Half-Year Financial Statements 31 December 2014

1 Basis of Preparation of the Half-Year Financial Report

This half-year financial report does not include all the notes of the type usually included in an annual financial report.

It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2014 and any public announcements made by Hansen Technologies Limited during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act 2001 .

Hansen Technologies Ltd is a for-profit entity for the purpose of preparing the financial statements.

The half-year financial report was authorised for issue by the Directors as at the date of the Directors' report.

(a) Basis of preparation

This half-year financial report has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

The half-year financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets as described in the accounting policies.

The accounting policies applied in this half-year financial report are consistent with those of the annual financial report for the year ended 30 June 2014 and the corresponding half-year.

(b) Accounting standards issued but not yet effective

(i) AASB 15 Revenue from contracts with customers

AASB15 introduces a five step process for revenue recognition with the core principle of the new Standard being for entities to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services.

AASB15 will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements.

The directors have not yet assessed the impact (if any) of changes in the standard above.

(c) Rounding amounts

The company is of a kind referred to in ASIC Class Order CO 98/0100 and in accordance with that Class Order, amounts in the financial statements have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

2 Foreign currency translations and balances

Exchange differences arising on translation of the foreign controlled entities are recognised in other comprehensive income and accumulated in a separate reserve within equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss as part of the gain or loss on sale.

Dividends Dividends paid during the half-year: - 3 cent final dividend paid 30 September 2014 - 3 cent final dividend paid 30 September 2013 Dividends declared after the half year and not recognised: - 3 cent interim dividend (2.5 cents fully franked, 0.5 cents unfranked) - 3 cent interim dividend (2.5 cents fully franked, 0.5 cents unfranked)	Half-year to Dec	Half-year to Dec
	2014	2013
	$'000	$'000
	4,874	4,808
	4,874	4,808
	4,896	4,817

3 Dividends

4 Segment Information

a) Description of segments

Inter-segment pricing is determined on an arm's length basis. Segment revenue and results derive from items directly attributable to a segment or those that can be allocated on a reasonable basis.

Business Segments

The consolidated entity comprises the following main business segments, based on the consolidated entity's management reporting system:

Billing : Represents the sale of billing applications and the provision of consulting services in regard to billing systems.

Outsourcing : Represents the provision of various IT outsourced services covering facilities management, systems and operations support, network services and business continuity support.

Other : Represents software and service provision in superannuation administration.

b) Segment information Half-year 2014 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source	Half-year to Dec 2014	Half-year to Dec 2014	Half-year to Dec 2014	Half-year to Dec 2014
	Billing	Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	44,592	2,989	1,588	49,169
	44,592	2,989	1,588	49,169
	10,944	1,598	558	13,100
	10,944	1,598	558	13,100

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Half-year 2013 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source	Half-year to Dec 2013	Half-year to Dec 2013	Half-year to Dec 2013	Half-year to Dec 2013
	Billing	Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	35,550	3,705	1,992	41,247
	35,550	3,705	1,992	41,247
	7,911	1,606	658	10,175
	7,911	1,606	658	10,175

The total assets and liabilities of the consolidated entity are not disaggregated on a business segment basis within the management reporting system.

(i) Reconciliation of segment result from the external source to the consolidated statement of comprehensive income Segment result from external source Net interest Depreciation & amortisation Realised / unrealised foreign exchange differences Other Profit before income tax	Half-year to Dec	Half-year to Dec
	2014	2013
	$'000	$'000
	13,100 (167) (477) 515 (474)	10,175 89 (647) 333 (809)
	12,497	9,141

5 Plant, equipment and leasehold improvements

Plant, equipment and leasehold improvements at cost Accumulated depreciation Reconciliation Carrying amount at the beginning of the period Additions Depreciation expense Net foreign currency movements arising from foreign operations Carrying amount at the end of the period	Dec-14	Jun-14
	$'000	$'000
	27,851 (22,544)	25,711 (21,335)
	5,307	4,376
	4,376 1,668 (808) 71
	5,307

6 Borrowings

The Company has a secured $A20 million multicurrency 3 year term facility with its external bankers to provide additional funding as required for acquisitions and general corporate purposes.

The facility is secured by the Australian Group entities and guaranteed by the parent entity Hansen Technologies Limited . As at 31 December 2014 the remaining unutilised portion of the facility is $A18 Million.

Secured Term facility

Dec-14	Jun-14
$'000	$'000
2,000	10,055
2,000	10,055

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

7 Contributed capital

Number of ordinary shares on issue Movement in ordinary shares on issue Beginning of the half-year Dividend re-investment plan Options exercised End of the half-year	Dec-14	Jun-14
	No.	No.
	163,214,381	161,209,642
	161,209,642 734,739 1,270,000 163,214,381
	161,209,642 734,739 1,270,000
	163,214,381

8 Contingent Liabilities

There have been no changes in contingent liabilities since 30 June 2014.

9 Subsequent Events

The Directors of Hansen have declared a 3 cent interim dividend, being 2.5 cents per share fully franked and 0.5c per share unfranked, payable to shareholders as of the record date of 10 March 2015, with payment to follow on 27 March 2015.

There were no other material events subsequent to the period ending 31 December 2014 that have significantly affected or may significantly affect the consolidated entity.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd Directors Declaration

The Directors declare that the financial statements and notes set out on pages 6 to 13 in accordance with the Corporations Act 2001 :

(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 , and other mandatory professional reporting requirements; and

(b) Give a true and fair view of the financial position of the consolidated entity as at 31 December 2014 and of its performance for the half-year ended on that date.

In the Directors’ opinion there are reasonable grounds to believe that Hansen Technologies Ltd will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors.

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David Trude Director Melbourne 26 February 2015

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Andrew Hansen Director

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Report on the Half-Year Financial Report

We have reviewed the accompanying half‑year financial report of Hansen Technologies Ltd and controlled entities, which comprises the condensed consolidated statement of financial position as at 31 December 2014, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half‑year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the Directors' declaration of the consolidated entity comprising the company and the entities it controlled at the period's end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The Directors of the company are responsible for the preparation of the half‑year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the Directors determine is necessary to enable the preparation of the half‑year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half ‑year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2014 and its performance for the half‑year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Hansen Technologies Ltd and controlled entities, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half‑year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

An independent Victorian Partnership ABN 27 975 255 196 Liability limited by a scheme approved under Professional Standards Legislation

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half‑year financial report of Hansen Technologies Ltd and controlled entities is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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S D WHITCHURCH Partner

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PITCHER PARTNERS Melbourne

26 February 2015

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

An independent Victorian Partnership ABN 27 975 255 196 Liability limited by a scheme approved under Professional Standards Legislation

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