HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2021

Feb 24, 2021

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Hansen Technologies Limited ABN 90 090 996 455

Interim Financial Report for the half-year ended 31 December 2020

Hansen Technologies Limited

Interim Financial Report for the half-year ended 31 December 2020

Contents		Page Number
	.......................................................................................................................................................... 3
Auditor's Independence Declaration ............................................................................................................................. 5
Consolidated Statement of Comprehensive Income ...................................................................................................... 6
Consolidated Statement of Financial Position ............................................................................................................... 7
Consolidated Statement of Changes in Equity .............................................................................................................. 8
Consolidated Statement of Cash Flows ........................................................................................................................ 9
Notes to the Financial Statements ...............................................................................................................................10
		..................................................................................................................................................17
Independent Auditor's Review Report ..........................................................................................................................18

Hansen Technologies Limited 31 December 2020 Half-Year Report

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The Directors present their report together with the half-year financial report of the consolidated entity consisting of Hansen Technologies Limited and its controlled entities for the six months ended 31 December 2020, and the eport thereon. This half-year financial report has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

Principal activities

The principal activities of the Group were the development, integration and support of billing systems software for the Energy and Communications sectors. Other activities undertaken by the Group include IT outsourcing services and the development of other specific software applications.

Directors

The names of the Directors in office at any time during the whole of the half-year and up to the date of this report are:

Mr David Trude (Chairperson)

Mr Andrew Hansen (CEO and Managing Director)

Mr Bruce Adams Ms Jennifer Douglas Mr David Howell Mr David Osborne Mr Don Rankin

Review of Operations

operating result for the half year to 31 December 2020 comprised of the following:

operating result for the half year to 31 December	2020 comprised of the following:	2020 comprised of the following:
	6 months ended 31 Dec
	31 Dec 2020	31 Dec 2019	Movement %
	A$ millions	A$ millions
Operating revenue	142.2	144.3	1.4%
Statutory net profit after tax	20.3	7.6	166.4%
Underlying EBITDA1, 2, 4	52.3	37.7	38.7%
Underlying NPAT4	20.9	9.3	124.7%
Underlying NPATA1,3	29.6	17.9	65.4%
Basic earnings per share (EPS) (cents)	10.2 cents	3.8 cents	168.4%
Basic EPS based on underlyingNPATA(EPSa) (cents)1	14.9 cents	9.0 cents	65.6%

1. The Directors believe the information additional to IFRS measures included in the report is relevant and useful in measuring the financial performance of the Group. These include: EBITDA, NPATA and EPSa.

2. EBITDA is a non-IFRS term, defined as earnings before interest, tax, depreciation and amortisation, and excluding net foreign exchange gains (losses).

3. NPATA is a non-IFRS term, defined as net profit after tax, excluding tax-effected amortisation of acquired intangibles.

4. Underlying EBITDA, underlying NPAT and underlying NPATA exclude separately disclosed items, which represent the one-off costs and income during the period. Further details of the separately disclosed items are outlined in Note 3 to the Financial Report.

In the first half of the financial year, the business continued to deliver strong results, with underlying EBITDA exceeding the previous corresponding period by 38.7%.

sales pipeline growth in the first half of the financial year.

Investment in our products has continued throughout the period ensuring our software provides market-relevant solutions to our customers and sales prospects.

The Group has generated operating cash flows of $39.8 million, which has been used to retire net external debt of $10.3 million, fund capital expenditure of $8.8 million, reduce lease liabilities of $3.1 million and pay dividends of $13.0 million (net of dividend reinvestments). With capabilities, Hansen is well placed to fund ongoing operations and future growth opportunities.

The Directors of Hansen have declared 5 cents per share interim dividend, partially franked to 1.10 cents.

3 Hansen Technologies Limited 31 December 2020 Half-Year Report

Significant Changes in the State of Affairs

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

Auditor's Independence Declaration

Corporations Act 2001 in relation

to the review for the half-year is provided immediately after this report.

Rounding of Amounts to Nearest Thousand Dollars

In accordance with cases, to the nearest million dollars.

, the amounts in

Signed in accordance with a resolution of the Directors, pursuant to section 306(3)(a) of the Corporations Act 2001 :

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David Trude Director

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Andrew Hansen Director

Dated: 25 February 2021

Hansen Technologies Limited 31 December 2020 Half-Year Report

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DECLARATION

As lead auditor for the review of the financial report of Hansen Technologies Limited and its controlled entities for the half year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

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RSM AUSTRALIA PARTNERS

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M PARAMESWARAN

Partner

Dated: 2 February 2021 Melbourne, Victoria

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Consolidated Statement of Comprehensive Income

For the Half-Year Ended 31 December 2020

		Dec-20	Dec-19
	Note	$'000	$'000
Operating revenue from contracts with customers	2(b), 4	142,211	144,331
Other income		920	1,200
Total revenue from contracts with customers and other income		143,131	145,531
Employee benefit expenses		(69,427)	(78,694)
Amortisation expense	5	(15,416)	(15,292)
Depreciation expense		(4,916)	(5,486)
Property and operating rental expenses		(2,038)	(2,218)
Contractor and consultant expenses		(3,339)	(4,860)
Software licence expenses		(1,356)	(1,121)
Hardware and software expenses		(7,466)	(7,484)
Travel expenses		(204)	(4,783)
Communication expenses		(1,197)	(1,730)
Professional expenses		(1,558)	(3,050)
Finance costs on borrowings		(2,526)	(4,363)
Finance costs on lease liabilities		(493)	(617)
Foreign exchange losses		(1,395)	(684)
Other expenses		(5,118)	(6,060)
Total expenses		(116,449)	(136,442)
Profit before income tax expense		26,682	9,089
Income tax expense		(6,410)	(1,480)
Netprofit after income tax expense for the half-year		20,272	7,609
Other comprehensive expense
Items that may be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations		(9,953)	(7,640)
Other comprehensive expense for the half-year, net of tax		(9,953)	(7,640)
Total comprehensive income/(expense) for the half-year		10,319	(31)
Basic earnings (cents) per share attributable to ordinary equity holders of the
Company		10.2	3.8
Diluted earnings (cents) per share attributable to ordinary equity holders of the
Company		10.1	3.8

The accompanying notes on pages 10 to 16 form part of these consolidated financial statements.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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Consolidated Statement of Financial Position

As at 31 December 2020

		Dec-20	Jun-20
	Note	$'000	$'000
Current assets
Cash and cash equivalents		48,910	44,492
Receivables		54,966	47,916
Accrued revenue	4(b)	27,951	21,945
Other current assets		9,453	8,357
Total current assets		141,280	122,710
Non-current assets
Plant, equipment & leasehold improvements		11,595	11,414
Intangible assets	5	356,344	377,660
Right-of-use assets		16,589	20,087
Deferred tax assets		6,414	9,971
Other non-current assets		886	3,681
Total non-current assets		391,828	422,813
Total assets		533,108	545,523
Current liabilities
Payables		25,437	24,223
Borrowings	7	-	591
Lease liabilities		5,129	5,661
Current tax payable		8,948	5,632
Provisions		14,229	15,555
Unearned revenue	4(b)	34,848	24,471
Total current liabilities		88,591	76,133
Non-current liabilities
Deferred tax liabilities		37,934	43,443
Borrowings	7	142,811	157,852
Lease liabilities		12,503	15,384
Provisions		170	170
Unearned revenue	4(b)	24	47
Total non-current liabilities		193,442	216,896
Total liabilities		282,033	293,029
Net assets		251,075	252,494
Equity
Share capital	9	142,078	140,952
Foreign currency translation reserve		(556)	9,397
Share-based payment reserve	6	6,440	5,404
Retained earnings		103,113	96,741
Total equity		251,075	252,494

The accompanying notes on pages 10 to 16 form part of these consolidated financial statements.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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Consolidated Statement of Changes in Equity

For the Half-Year Ended 31 December 2020

		Contributed		Retained	Total
		Equity	Reserves	Earnings	Equity
For the half-year ended 31 December 2020	Note	$'000	$'000	$'000	$'000
Balance as at 1 July 2020		140,952	14,801	96,741	252,494
Net profit after income tax expense for the half-year		-	-	20,272	20,272
Movement in carrying amount of foreign entities due to
currencytranslation		-	(9,953)	-	(9,953)
Total comprehensive income for the half-year		-	(9,953)	20,272	10,319
Transactions with owners in their capacity as
owners:
Employee share options exercised	9(b)	200	-	-	200
Share-based payment expense performance rights	6	-	1,036	-	1,036
Equity issued under dividend reinvestment plan	8, 9(b)	926	-	-	926
Dividends declared	8	-	-	(13,900)	(13,900)
Total transactions with owners in their capacity as
owners		1,126	1,036	(13,900)	(11,738)
Balance as at 31 December 2020		142,078	5,884	103,113	251,075
		Contributed		Retained	Total
		Equity	Reserves	Earnings	Equity
For the half-year ended 31 December 2019	Note	$'000	$'000	$'000	$'000
Balance as at 1 July 2019		138,746	27,271	82,853	248,870
Net profit after income tax expense for the half-year		-	-	7,609	7,609
Movement in carrying amount of foreign entities due to
currencytranslation		-	(7,640)	-	(7,640)
Total comprehensive income for the half-year		-	(7,640)	7,609	(31)
Transactions with owners in their capacity as owners:
Employee share options exercised		345	-	-	345
Share-based payment expense performance rights	6	-	759	-	759
Equity issued under dividend reinvestment plan	8	1,026	-	-	1,026
Dividends declared	8	-	-	(5,930)	(5,930)
Total transactions with owners in their capacity as
owners		1,371	759	(5,930)	(3,800)
Balance as at 31 December 2019		140,117	20,390	84,532	245,039

The accompanying notes on pages 10 to 16 form part of these consolidated financial statements.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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Consolidated Statement of Cash Flows

For the Half-Year Ended 31 December 2020

		Dec-20	Dec-19
	Note	$'000	$'000
Cash flows from operating activities
Receipts from customers		126,548	143,805
Payments to suppliers and employees		(81,047)	(115,836)
Interest received		3	69
Finance costs on borrowings		(1,876)	(3,811)
Finance costs on lease liabilities		(493)	(617)
Income tax paid		(3,330)	(5,372)
Net cash from operating activities		39,805	18,238
Cash flows from investing activities
Payments for plant, equipment and leasehold improvements		(1,982)	(2,807)
Payment for capitalised development costs	5	(6,809)	(7,159)
Net cash used in investing activities		(8,791)	(9,966)
Cash flows from financing activities
Proceeds from options exercised	9(b)	200	345
Dividends paid, net of dividend re-investment	8	(12,974)	(4,904)
Proceeds from borrowings		-	4,900
Repayment of borrowings		(10,280)	(12,889)
Repayment of lease liabilities		(3,087)	(3,433)
Net cash used in financing activities		(26,141)	(15,981)
Net increase/(decrease) in cash and cash equivalents		4,873	(7,709)
Cash and cash equivalents at beginningof the half-year		44,492	38,288
Effects of exchange rate changes on cash and cash equivalents		(455)	(653)
Cash and cash equivalents at end of the half-year		48,910	29,926

The accompanying notes on pages 10 to 16 form part of these consolidated financial statements.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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Notes to the Financial Statements Half-Year Ended 31 December 2020

1. Basis of preparation

The consolidated interim financial statements as at, and for, the half-year ended 31 December 2020 -year comprise of the financial statements of the Group, being and its controlled entities. The Company is a company limited by shares, incorporated and domiciled in Australia.

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

The nature of the operations and principal activities of the Group are described i

Report.

(a) Basis of preparation of the half-year financial report

The half-year financial report has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 . It does not include all the information and disclosures required in the annual financial statements and annual financial report for the year ended 30 June 2020 and any public announcements made by the Company during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act 2001 .

The accounting policies adopted in the preparation of the half-year financial report are consistent with those adopted in or the year ended 30 June 2020.

Amendments that are effective for the first time from 1 July 2020 and could be applicable to the Group are:

• AASB 2018-6 Amendments to Australian Accounting Standards: Definition of a Business

• Amendments to the Conceptual Framework

• Amendments to AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors

These amendments do not have a significant impact on the half-year financial report and therefore no additional disclosures have been made.

The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures.

(b) Rounding amounts

The Group has applied the relief available under Instrument 2016/191 and, accordingly the amounts in the half-year financial report an been rounded to the nearest thousand dollars, or in certain cases to the nearest million dollars.

2. Segment information

(a) Description of segments

Operating Decision Maker).

financial information about each of these operating businesses is reported to the executive management team on at least a monthly basis.

Where operating segments meet the aggregation criteria, these are aggregated into reported segments. Operating segments are aggregated based on similar products and services provided to the same type of customers using the same distribution method.

Segment profits, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Interconsolidation. There are no significant transactions between segments.

The Group has identified only one reportable segment as described in the table business units that do not qualify as an operating segment, as well as the operating segments which do not meet the disclosure requirements of a reportable segment, including IT Outsourcing and Customer Care services.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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2. Segment information continued

Reportable segment Description of segment Billing Sale of billing applications and the provision of consulting services related to billing systems.

(b) Segment information

(b) Segment information
		Billing	Other	Total
6-months ended 31 Dec 2020	Note	$'000	$'000	$'000
Segment revenue
Total segment revenue	4	138,324	3,887	142,211
Revenue from external customers		138,324	3,887	142,211
Segment result
Total segment result		28,442	372	28,814
Segmentprofit from core operations		28,442	372	28,814
		Billing	Other	Total
6-months ended 31 Dec 2019	Note
Segment revenue
Total segment revenue	4	139,459	4,872	144,331
Revenue from external customers		139,459	4,872	144,331
Segment result
Total segment result		12,138	213	12,351
Segmentprofit from core operations		12,138	213	12,351

(i) Reconciliation of segment profit from core operations to the consolidated statement of comprehensive income

Note	Dec-20 Dec-19 $'000 $'000
Segment profit from core operations Interest revenue Interest expense Unallocated depreciation and amortisation Unallocated separately disclosed item impacting profit 3 Other expense	28,814 12,351 3 69 (14) (112) (515) (590) 54 - (1,660) (2,629)
Profit before income tax expense Income tax expense	26,682 9,089 (6,410) (1,480)
Profit after income tax expense for the half-year	20,272 7,609
(ii) Segment assets and liabilities Billing Other Total Total segment assets $'000 $'000 $'000 31 December 2020 469,018 11,167 480,185 30 June 2020 482,160 14,284 496,444 Total segment liabilities 31 December 2020 276,371 4,085 280,456 30 June 2020 287,009 4,938 291,947

Hansen Technologies Limited 31 December 2020 Half-Year Report

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3. Separately disclosed items

The Group has disclosed underlying EBITDA[1] adjusted for certain transactions during the period

The Group considers that these transactions are of such significance to understanding the ongoing results of the Group that the Group has elected to separately identify these transactions to determine an ongoing result to enable a 'like-forlike' comparison. These items are described as 'separately disclosed items' throughout this Financial Report.

6-months ended 31 Dec	2020 2019 $'000 $'000
Increase to profit before tax Non-recurring income Decrease to profit before tax One-off costs incurred	54 - (902) (2,264)
	(848) (2,264)

Non-recurring income

The Group has separately identified income that is not in the normal course of business activities. This amount is the adjustment for the finalisation of the working capital from the acquisition of Sigma Systems. This amount has been presented

One-off costs incurred

For the half-year ended 31 December 2020, the Group recognised a one-off remuneration expense in relation to the acquisition of Sigma Systems. This cost has

consolidated statement of comprehensive income. In the previous financial period, $2,264,000 was incurred in relation to redundancy, retention payments and associated post-acquisition costs of Sigma Systems, which have been presented onsolidated statement of comprehensive income.

Reconciliation with Group statutory measures

Reconciliation with Group statutory measures
6-months ended 31 Dec	2020 2019 $'000 $'000
Underlying EBITDA Less separatelydisclosed items	52,273 37,726 (848) (2,264)
EBITDA1	51,425 35,462
Underlying net profit after tax Less separately disclosed items Less acquired amortisation, net of tax Tax effect of separatelydisclosed items	29,607 17,862 (848) (2,264) (8,726) (8,589) 239 600
Netprofit after tax	20,272 7,609

1. EBITDA is a non-IFRS term, defined as earnings before interest, tax, depreciation and amortisation, and excluding net foreign exchange gains (losses).

4. Revenue

(a) Disaggregation of revenue from contracts with customers

6-months ended 31 Dec 2020	Billing $'000	Other $'000	Total $'000
Types of goods and services Licence, support and maintenance Services Hardware and software sales Other revenue	80,139 57,828 309 48
		2,616	82,755
		1,168	58,996
		80	389
		23	71
Total revenue from contracts with customers	138,324	3,887	142,211
Revenue by market vertical Energy Communications Other	72,731 65,410 183
		1,139	73,870
		19	65,429
		2,729	2,912
Total revenue from contracts with customers	138,324	3,887	142,211

Hansen Technologies Limited 31 December 2020 Half-Year Report

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4. Revenue continued

6-months ended 31 Dec 2020	Billing $'000	Other Total $'000 $'000
Revenue by geographic segment APAC Americas EMEA
	20,945	2,759 23,704
	37,505	1,128 38,633
	79,874	- 79,874
Total revenue from contracts with customers	138,324	3,887 142,211
Timing of revenue recognition Goods and services transferred at a point in time Services transferred over time
	24,084	103 24,187
	114,240	3,784 118,024
Total revenue from contracts with customers	138,324	3,887 142,211

	Billing	Other	Total
6-months ended 31 Dec 2019	$'000	$'000	$'000
Types of goods and services
Licence, support and maintenance	83,104	2,423	85,527
Services	55,587	2,379	57,966
Hardware and software sales	305	-	305
Other revenue	463	70	533
Total revenue from contracts with customers	139,459	4,872	144,331
Revenue by market vertical
Energy	70,331	2,364	72,695
Communications	69,128	-	69,128
Other	-	2,508	2,508
Total revenue from contracts with customers	139,459	4,872	144,331
Revenue by geographic segment
APAC	26,010	2,508	28,518
Americas	40,631	2,364	42,995
EMEA	72,818	-	72,818
Total revenue from contracts with customers	139,459	4,872	144,331
Timing of revenue recognition
Goods and services transferred at a point in time	22,220	71	22,291
Services transferred over time	117,239	4,801	122,040
Total revenue from contracts with customers	139,459	4,872	144,331

(b) Contract balances

(b) Contract balances
	Dec-20 Jun-20 $'000 $'000
Asset:Accrued revenue Liability:Unearned revenue current and non-current	27,951 21,945 34,872 24,518

inception but have yet to be billed to the customer. Accrued revenue is transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. Unearned revenue primarily relates to advance consideration received from customers representing support and maintenance services.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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5. Intangible assets

5. Intangible assets
		Technology
		and other	Software
		intangibles at	development
	Goodwill	cost	at cost	Total
	$'000	$'000	$'000	$'000
Cost
At 30 June 2020	221,288	188,585	80,420	490,293
Additions	-	-	6,809	6,809
Net foreign currency movements arising from
foreign operations	(7,797)	(6,470)	(3,256)	(17,523)
At 31 December 2020	213,491	182,115	83,973	479,579
Accumulated amortisation and impairment
At 30 June 2020	(1,593)	(62,243)	(48,797)	(112,633)
Amortisation charge	-	(10,499)	(4,917)	(15,416)
Net foreign currency movements arising from
foreign operations	2	3,189	1,623	4,814
At 31 December 2020	(1,591)	(69,553)	(52,091)	(123,235)
Net book amount
At 30 June 2020	219,695	126,342	31,623	377,660
At 31 December 2020	211,900	112,562	31,882	356,344

6. Share-based payments

On 1 July 2020, 723,360

Performance Rights Plan. This amount includes 213,189 rights issued to the CEO following approval obtained at the Compan November 2020. 157,918 rights will vest if targeted performance measures are achieved and an additional 55,271 will vest based on overachievement of targets. Any differences in the fair value of the performance rights between the original grant date by the Board and the date of shareholder approval is considered not material to the remuneration awarded.

d short-term incentive plan and the long-

term incentive plan. Performance rights issued as part of the enhanced short-term incentive plan are subject to financial (revenue and EBITDA) hurdles in the current financial year and will be subject to a two-year deferral period, within which the employee must remain employed. Performance rights issued as part of the long-term investment plan are subject to a relative total shareholder return hurdle (TSR performance right) and earnings per share hurdle (EPS performance right). The measurement period of the rights is from 1 July 2020 to 30 June 2023, with an expected vesting date of 30 June 2023. Management has assessed an estimated fair value at grant date of the performance rights of $2.94 per right using Black-Scholes option pricing model.

The model takes into account the term of the performance rights, the impact of dilution (where material), the 5-day volume weighted average price prior to the grant date and expected volatility of the underlying share, the risk-free interest rate for the term of the performance rights and the correlations and volatilities of the peer group companies.

The model inputs for the performance rights granted during the six months ended 31 December 2020 included:

• grant date: 1 July 2020

• expected vesting date: 30 June 2023

• measurement period: 1 July 2020 to 30 June 2023

• risk-free interest rate: 0.93%

For the six months ended 31 December 2020, the Group has recognised $1,036,000 of share-based payment expense, presented as part of mployee benefit expenses in the consolidated statement of comprehensive income (six months ended 31 December 2019: $759,000).

As at reporting date, the Group has commissioned an independent consultant to assess the fair value at grant date of the performance rights granted on 1 July 2020. Management does not expect any material difference between the fair value determined by the independent consultant and the fair value estimated internally. This work will be completed in the second half of the financial year and any adjustment will be reflected at 30 June 2021.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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7. Borrowings

7. Borrowings
	Dec-20 Jun-20 $'000 $'000
Current Secured Bank overdraft	- 591
	- 591
Non-current Secured Term facility gross borrowings Term facility prepaid borrowingcosts(1)	144,689 160,394 (1,878) (2,542)
	142,811 157,852

(1) This amount does not impact the available facility.

The Group has a $170,764,000 syndicated multi-currency facility with its external financiers, which was used to fund the acquisition of Sigma Systems in June 2019. The facility also provides additional funding for general corporate and working capital purposes. The facility expires on 30 April 2022 and will be subject to renewal upon negotiation with its external financiers. The facility is secured by 75% of Group assets. As at 31 December 2020, the remaining unutilised portion of the facility is $26,075,000.

The average interest rate of the borrowings during the half-year ended 31 December 2020 is 1.53%.

8. Dividends

A regular interim dividend of 5 cents per share has been declared. This interim dividend of 5 cents per share, partially franked, was announced to the market on 25 February 2021. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Limited as at 31 December 2020.

in the accounts of Hansen Technologies Limited as at 31 December 2020.
	Dec-20 Dec-19 $'000 $'000
Dividends paid during the half-year (net of dividend re-investment): 7 cents per share final dividend paid 25 September 2020(1) partially franked 3 centsper share final dividendpaid 26 September 2019(2) partiallyfranked	12,974 - - 4,904
	12,974 4,904
Proposed dividend not recognised at the end of the half-year: 5 cents per share interim dividend (5 cents partially franked)(3)(4) 3 centsper share interim dividend(3 centspartiallyfranked)(4)	9,940 - - 5,939

(1) The final dividend paid of 7 cents per share franked to 0.7 cents, comprised of a regular dividend of 5 cents per share and a special dividend of 2 cents per share.

(2) The final dividend paid of 3 cents per share franked to 2.6 cents, comprised of a regular dividend of 3 cents per share.

(3) The proposed interim dividend of 5 cents per share franked to 1.1 cents, will comprise of a regular dividend of 5 cents per share.

(4) Proposed dividends are s of dividends payable.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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9. Contributed capital

(a) Issued and paid up capital

(a) Issued and paid up capital
	Dec-20 Dec-20 Jun-20 Jun-20 No. $'000 No. $'000
Ordinary shares, fully paid	198,802,764 142,078 198,232,076 140,952

(b) Movements in shares on issue Half-year ended 31 December 2020
	No.ofShares	$'000
Balance at beginning of the half-year Shares issued under dividend reinvestment plan Options exercised under employee share plan Performance rights exercised under employee share plan	198,232,076	140,952
	236,566	926
	75,000	200
	259,122	-
Balance at end of the half-year	198,802,764	142,078

10. Subsequent Events

Please refer to note 8 for the interim dividend recommended by the Directors, to be paid on 25 March 2021.

There has been no other matter or circumstance, which has arisen since 31 December 2020 that has significantly affected or may significantly affect:

(i) the operations, in financial years subsequent to 31 December 2020, of the Group;

(ii) the results of those operations; or

(iii) the state of affairs, in financial years subsequent to 31 December 2020, of the Group.

Hansen Technologies Limited 31 December 2020 Half-Year Report

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The Directors declare that the financial statements and notes set out on pages 6 to 16 are in accordance with the Corporations Act 2001 , including:

• (a) complying with Accounting Standards, in particular AASB 134 Interim Financial Reporting , and the Corporations Regulations 2001 , and other mandatory professional reporting requirements; and

• (b) giving a true and fair view of the financial position of the consolidated entity as at 31 December 2020 and of its performance for the half-year ended on that date.

, there are reasonable grounds to believe that Hansen Technologies Limited 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, pursuant to section 303(5)(a) of the Corporations Act 2001 .

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David Trude

Director

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Andrew Hansen Director

Melbourne

25 February 2021

Hansen Technologies Limited 31 December 2020 Half-Year Report

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TO THE MEMBERS OF

HANSEN TECHNOLOGIES LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Hansen Technologies Limited (the Company) and its Controlled Entities (the Group) which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explana Group comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

-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 internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

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 half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group financial position as at 31 December 2020 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 its 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.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Hansen Technologies Ltd and its Controlled Entities, would be in the same terms if given to the directors as at the time of this

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 its Controlled Entities is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Group financial position as at 31 December 2020 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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RSM AUSTRALIA PARTNERS

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M PARAMESWARAN Partner

Dated: 2 February 2021 Melbourne, Victoria

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