HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2024

Feb 20, 2024

==> picture [114 x 23] intentionally omitted <==

==> picture [151 x 9] intentionally omitted <==

----- Start of picture text -----

Confidential & Proprietary Information
----- End of picture text -----

==> picture [61 x 7] intentionally omitted <==

----- Start of picture text -----

© H A N S E N
----- End of picture text -----

==> picture [310 x 540] intentionally omitted <==

----- Start of picture text -----

IMPORTANT NOTICE
----- End of picture text -----

==> picture [114 x 23] intentionally omitted <==

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

Information contained in this presentation:

Definitions:

• 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.

• 1H22 = six months ended 31 December 2021

• 2H22 = six months ended 30 June 2022

• FY22 = financial year ended 30 June 2022

• 1H23 = six months ended 31 December 2022

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

• 2H23 = six months ended 30 June 2023

• FY23 = financial year ended 30 June 2023

• 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.

• 1H24 = six months ended 31 December 2023

• 2H24 = six months ended 30 June 2024

• FY24 = financial year ended 30 June 2024

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

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

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

• 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.

• NPAT = Net profit after tax

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

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

• EPSa = Earnings per share on NPATA

• EBITDA and NPATA are non-IFRS measures that have not been audited or reviewed by Hansen’s auditors.

2

© H A N S E N

==> picture [310 x 540] intentionally omitted <==

AGENDA

• powercloud

• Key Themes & Results Highlights

• Results Details

• Cash and Capital Management

• R&D, Product and AI Update

• M&A

• FY24 Guidance

• Q&A

• Financial Statements

==> picture [114 x 23] intentionally omitted <==

3

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

A NEW CHAPTER FOR HANSEN AND POWERCLOUD

==> picture [67 x 66] intentionally omitted <==

Sitting within Hansen’s core business of billing and customer management, the acquisition of powercloud joins powercloud’s applications to Hansen’s existing suite of market leading products

==> picture [365 x 68] intentionally omitted <==

==> picture [75 x 75] intentionally omitted <==

The acquisition significantly expands Hansen’s scale and scope in the utilities sector and the depth of its operational presence in one of Hansen’s key target markets Germany, and the broader DACH region

==> picture [114 x 23] intentionally omitted <==

5

© H A N S E N

ABOUT POWERCLOUD

powercloud has a strong position as the leading platform provider for German utilities

Founded in 2012, powercloud is a leading provider of mission-critical billing and customer management software products serving tier 1 and 2 utility companies and regional municipalities across Germany

With a team of over 300 employees, powercloud currently supports over 65 customers including most of the largest German utilities

powercloud is an expanding, low churn, innovative utilities ERP software company in a highly attractive and fast-growing market

Software products support customers along the whole customer lifecycle. powercloud services the B2C & B2B Retailer and Grid Operator network in Germany

powercloud’s products provide a high degree of automation, configurability, stability, and scalability. powercloud’s modern, flexible, and modular cloud native billing and regulatory processes helps their customers dramatically reduce time to market and cost to serve

==> picture [114 x 23] intentionally omitted <==

6

© H A N S E N

TRANSACTION OVERVIEW

With Hansen’s wealth of experience in the sector, the acquisition delivers substantial opportunities to accelerate and optimise powercloud’s product development based on Hansen’s existing product portfolio, as well as opportunities for Hansen to leverage powercloud’s high-quality, modern, and modular product design into further markets in the DACH region and beyond

• Our initial investment was at an Enterprise Value of €30m comprising a €17m purchase price and an initial €13m

• Initial investment working capital injection

• The acquisition was 100% debt funded from Hansen’s existing banking facility

• powercloud is expected to add FY25 revenues of approximately $40-46m and is anticipated to become EBITDA accretive within the financial year ending June 2025

Financial Impact

• powercloud’s recent profitability has been impacted by cost increases from rapid scaling and additional regulatory requirements during the EU energy crisis

• We have a clear roadmap to profitability

• Post acquisition, the Hansen balance sheet remains strong with a debt to EBITDA (leverage) ratio of less than 1

==> picture [114 x 23] intentionally omitted <==

7

© H A N S E N

STRATEGIC RATIONALE

==> picture [53 x 387] intentionally omitted <==

powercloud has developed and sells high-quality, modern and flexible software that is currently utilised by most of the largest energy suppliers and regional municipalities in Germany

powercloud’s products sit strongly within Hansen’s core business of billing and customer management, and are well designed to capture growth opportunities such as the German rollout of electricity smart-meters

Expands Hansen’s operational presence in Germany and the broader DACH region (Germany, Austria, Switzerland), where Hansen has strategic Tier 1 and 2 customers in both the utilities and telecom vertical

Leveraging Hansen’s global presence and strategic investment in R&D, the combination of the two businesses is expected to lead to material shared benefits and synergies

Further expands the depth and breadth of our global presence

Expected to be EBITDA accretive within the financial year ending June 2025

==> picture [114 x 23] intentionally omitted <==

8

© H A N S E N

POWERCLOUD TRADING & IMPACT

• powercloud was purchased for a compelling price but requires working capital / investment to return to profitability

• We expect powercloud to deliver FY24 revenue of approximately $16-18m (from 1 February 2024)

• powercloud’s profitability has been impacted by rapid scaling and regulatory requirements during the EU energy crisis

• In addition to the initial working capital injection on acquisition, Hansen will continue to invest over the next 12-18 months to build out capability and embed the product into the Hansen group

==> picture [284 x 143] intentionally omitted <==

----- Start of picture text -----

Over 300
Staff
----- End of picture text -----

==> picture [284 x 143] intentionally omitted <==

----- Start of picture text -----

EBITDA
Accretive within
FY25
----- End of picture text -----

==> picture [61 x 61] intentionally omitted <==

==> picture [61 x 63] intentionally omitted <==

We plan to invest a further ~$20m into R&D, restoring profitability & Hansenisation

R&D to align with Hansen ROI expectations

==> picture [60 x 52] intentionally omitted <==

==> picture [60 x 61] intentionally omitted <==

FY24 revenue of approximately $16-18m (from 1 February 2024)

Clear synergies & benefits identified

==> picture [114 x 23] intentionally omitted <==

9

© H A N S E N

EMBEDDING ‘HANSENISATION’

• We aim to introduce the Hansen ethos into powercloud as soon as possible

• powercloud will benefit from Hansen’s global resource pool and investment

Business As Usual powercloud will ultimately operate as a “Hansen Company”

PHASE 1

• Integration leadership team established

• Open lines of communication established

• Identify corporate service synergies

• Begin market alignment discussions

• Establish Hansen’s delivery and R&D methodology – invest in activities with clear ROI

• Hansen to be involved in customer contracts currently under re-negotiation

Integration committee will start working sessions

PHASE 2

• Account management structure and process

• Shared services and systems integrated

• Consolidation of financial reporting and compliance systems

• Continue sharing deeper product portfolio information and business will start to become “Hansen-ised”

• Identify upsell and cross sell opportunities

Common systems and global processes where appropriate

PHASE 3

• Drive value through customer relationship focus and development leveraging the combined skills of the newly integrated business

• As integration work completes, we will focus on future M&A activity that further supports the growth strategy in region

• Delivery disciplines and metrics embedded into powercloud

• Establish regular review and feedback

==> picture [114 x 23] intentionally omitted <==

10

© H A N S E N

DELIVERING BETTER OUTCOMES TOGETHER

==> picture [98 x 106] intentionally omitted <==

==> picture [100 x 100] intentionally omitted <==

==> picture [71 x 58] intentionally omitted <==

TWO MARKET COMPLIMENTARY BUSINESS LEADING COMPANIES PRODUCTS / SERVICES CONTINUITY

==> picture [263 x 47] intentionally omitted <==

==> picture [263 x 49] intentionally omitted <==

==> picture [114 x 23] intentionally omitted <==

11

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

1H24 KEY THEMES

==> picture [58 x 48] intentionally omitted <==

==> picture [53 x 50] intentionally omitted <==

==> picture [56 x 53] intentionally omitted <==

==> picture [44 x 49] intentionally omitted <==

Strong 1H24 Revenue Growth

We delivered revenue growth of 12.5% vs 1H23 and 8.2% excluding license fees

Supporting Digital Transformation

Continued our growth and development across a wide breadth of products and geographies

Carbon Neutral

Australian emissions for FY23 have been 100% offset and is undergoing Certification

Market Leading Software

One of only 8 vendors to attain 'Ready For Open Digital Architecture’ (ODA) status from TM Forum

Long Term Sustainable Cash Flow

As a predictable, stable business, we are generating consistent revenue growth and strong profit

M&A

We have used our favourable capital position to acquire powercloud and build a significant pipeline

Net Cash Positive

100% of Debt retired in Australia Further rapid pay down across the globe

High Customer Retention

We put the customer first, and our technology is industry leading and mission critical

==> picture [47 x 50] intentionally omitted <==

==> picture [50 x 53] intentionally omitted <==

==> picture [53 x 53] intentionally omitted <==

==> picture [50 x 50] intentionally omitted <==

==> picture [114 x 23] intentionally omitted <==

13

© H A N S E N

1H24 FINANCIAL SUMMARY

==> picture [824 x 338] intentionally omitted <==

----- Start of picture text -----

Revenue Underlying EBITDA [1] Underlying NPATA [2]
$167.7m $52.1m $27.0m
Up 15.8% vs 1H23
Up 12.5% vs 1H23 1H24 EBITDA Margin 31.1% Up 12.5% vs 1H23
Adjusted EPSa [3] Net Cash [4] Dividend
13.3¢ $8.0m 5.0¢
Up 11.8% vs 1H23 Positive for the first time since 2017 Flat on 1H23
----- End of picture text -----

Notes:

Amounts shown on a reported basis unless otherwise stated

1. 1H24 underlying EBITDA excludes ($3.3m) of non-recurring items. Underlying EBITDA has increased 8.4% (CAGR) since 1H20

2. Underlying NPATA = net profit after tax excluding tax effected amortisation of acquired intangibles and non-recurring items of ($2.4m). Underlying NPATA has increased 10.8% (CAGR) since 1H20

3. Underlying Basic EPSa, based on NPATA. EPSa has increased 10.3% (CAGR) since 1H20

4. Net Cash & Net Debt excluding AASB 16 lease liabilities and pre-paid borrowing costs

==> picture [114 x 23] intentionally omitted <==

14

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

KEY FINANCIAL METRICS	KEY FINANCIAL METRICS
Revenue ($M)	UnderlyingEBITDA1 ($M)				Underlying NPATA2 ($M)
144.3 157.1 142.2 144.5 148.9 147.6 149.1 162.7 167.7 21.0	37.7 48.0 52.3 46.9 54.3 46.0 45.0 54.5 21.0	52.1			17.9 29.0 29.6 25.2 31.8 26.4 24.0 31.6	27.0
• Revenue of $167.7m increased 12.5% vs 1H23 • Our revenue is highly recurring and predictable in nature • Operating revenue grew 9.2% on a constant currency basis vs 1H23 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24	• Underlying EBITDA of $52.1m increased 15.8% vs 1H23 • Despite investing in headcount and other operating expenses, our 1H24 Underlying EBITDA margin of 31.1% remains significantly ahead of historical averages • FX tailwinds are broadly aligned with Revenue 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24				1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 • Underlying NPATA of $27.0m increased 12.5% vs 1H23 and 10.8% on a CAGR basis since 1H20 • Delayed R&D activities resulted in less employee benefits capitalised during 1H24 • The effective tax rate for 1H24 has increased to ~25% vs 2H23 of ~20% mainly due to UK tax rate changes
Notes:
Amounts shown on a reported basis unless otherwise stated
Where applicable, these numbers are presented after adjusting the FY21 impact of the initial Telefonica licence revenue of $21m.
1. 1H24 underlying EBITDA excludes ($3.3m) of non-recurring items
2. Underlying NPATA = net profit after tax excluding tax effected amortisation of acquired intangibles and non-recurring items of ($2.4m)
16	© H A N S E N

16

==> picture [942 x 540] intentionally omitted <==

----- Start of picture text -----

||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|KEY FINANCIAL METRICS|
|EPSa|[1]|(Cents)|Net Cash|[2]|($M)|DPS|[3]|(Cents)|
|8.0|
|(0.4)|
|(28.5)|(28.7)|
|1H20|2H20|1H21|2H21|1H22|2H22|1H23|2H23|1H24|1H20|2H20|1H21|2H21|1H22|2H22|1H23|2H23|1H24|1H20|2H20|1H21|2H21|1H22|2H22|1H23|2H23|1H24|
|•|EPSa is up 11.8% vs 1H23|•|We were net cash positive from July 2023|•|We have maintained our dividend at 5 cents for 1H24|
|•|EPSa is up 10.3% from 1H20 on a CAGR basis|•|At the end of December 2023 cash reserves of $45.1m|•|With increasing levels of Hansen profits generated|
|•|exceed total borrowings of $37.1m|offshore our interim dividend will be partially franked|
|Our ability to increase earnings per share is off the back|
|of leveraging our strong balance sheet|•|Cash generation remains a key pillar of the business|•|Our dividend approach ensures we return funds to our|
|shareholders whilst allowing sufficient capital in the|
|business for the right acquisition|
|Notes:|
|Amounts shown on a reported basis unless otherwise stated|
|Where applicable and shown these numbers are presented after adjusting the FY21 impact of the initial Telefonica licence revenue of $21m|
|1.|Underlying Basic EPSa, based on NPATA|
|2.|Net Cash & Net Debt excluding AASB 16 lease liabilities and pre-paid borrowing costs|
|3.|2H20 and 2H22 include 2 cent special dividends|
|17|©|H|A|N|S|E|N|

----- End of picture text -----

17

FINANCIAL OVERVIEW

Support and Maintenance Revenue ($M)

==> picture [426 x 155] intentionally omitted <==

----- Start of picture text -----

• Highly predictable and
repeatable revenue source
18.0
18.7
23.0 22.5 17.9 15.5 15.2 14.2 15.3 • Up 11.7% vs 1H23
15.9 15.4 15.4 16.1 16.7 16.9 16.8 16.3 16.9 • Strong and sustainable growth in EMEA
32.8 35.5 33.6 34.8 37.0 37.9 37.7 40.3 43.1 • Includes updates and support recognised evenly over the
contracted term
1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24
EMEA APAC AMERICAS
----- End of picture text -----

Services Revenue ($M)

==> picture [414 x 155] intentionally omitted <==

----- Start of picture text -----

• Highly predictable and
repeatable revenue source
13.9 9.9 12.3 11.0 10.2 • Up 4.8% vs 1H23
12.8 14.2 16.6 13.9 9.8 10.1 11.3 17.5 • Well diversified by geography
9.3 8.8 6.8 9.8 9.4 • Some large implementations
concluded in EMEA in 2H23
42.8 44.5 44.1 47.1 42.0 • Represents application fees
35.9 38.0 37.8 36.3
received for configuration,
implementation and
1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 customisation
EMEA APAC AMERICAS
----- End of picture text -----

• Well diversified by geography

• Some large implementations concluded in EMEA in 2H23

Licence Revenue ($M)

==> picture [422 x 321] intentionally omitted <==

----- Start of picture text -----

• Largely predictable revenues
• CAGR 1H20 – 1H24 of 9.2%
• Impacted by IFRS 15
20.0 19.6 recognition. Certain contracts
17.2 17.1 require upfront recognition for
15.7
13.8 13.1 13.4 licences
12.2
• Average renewal 3-5 years
1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24
Excludes initial Telefonica licence revenue of $21m.
Customer Diversity (1H24 Revenue)
Customer 1
Customer 2 8% • Well diversified customer base
Customer 3
• No one customer
Customer 4 6%
contributes more than 8% of
Customer 5
63%
our 1H24 revenue
Customer 6 5%
Customer 7 • Customer diversity is
3%
Customer 8 consistent across many years
3%
Customer 9
3%
Customer 10
3%
Other Customers 3%
2%2%
----- End of picture text -----

==> picture [114 x 23] intentionally omitted <==

Notes: Amounts shown on a reported basis unless otherwise stated

18

© H A N S E N

FINANCIAL OVERVIEW

==> picture [441 x 178] intentionally omitted <==

----- Start of picture text -----

Revenue by Vertical ($M)
• The move to renewables and
self-generated energy
increases demand for our
72.5
85.4 97.7 products and services
75.2 108.9 76.8 73.9 75.2 79.3 • Increased convergence
78.0 between Comms & Energy
69.1 65.4 93.0 75.0 72.4 69.8 77.3 70.0 verticals is expected to drive
40.9 48.2 further demand beyond FY24
• Reduction in Comms driven by
2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 some unwinding of large
Communications Gas, Electricity and Water implementations
----- End of picture text -----

==> picture [429 x 159] intentionally omitted <==

----- Start of picture text -----

Revenue by Region ($M) • Our revenue is diverse across
geography, currency, product
38.6 36.8 33.7 and industry
43.0 42.1 38.6 38.3 29.5 34.1 • Creates opportunities to
27.7 28.8 37.2
29.5 25.0 28.5 26.1 23.7 27.4 28.5 28.5 • ~58% of our business in EMEA leverage our global footprint
64.4 72.8 88.9 79.9 99.2 83.2 89.6 86.5 97.1 96.8 a key area of focus for our M&A pipeline
• Modest reduction in Americas
2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 off the back of some
upgrade services completed
EMEA APAC AMERICAS
in FY23
----- End of picture text -----

Notes:

Amounts shown on a reported basis unless otherwise stated

==> picture [407 x 209] intentionally omitted <==

----- Start of picture text -----

Revenue Breakdown ($M)
Type 1H23 1H24 Movement
Support and Maintenance 69.8 78.0 11.7%
Sales, Services and Other Revenue 67.1 70.1 4.5%
Subtotal 136.9 148.1 8.2%
Licence 12.2 19.6 60.7%
Total 149.1 167.7 12.5%
----- End of picture text -----

• Support and Maintenance revenue, up 11.7% vs 1H23, are highly predictable and repeatable revenue streams received for contractual application services

• Sales, Services and Other revenue are up 4.3% vs 1H23 and are contracted application fees covering upgrades, implementations, change requests and market changes

• Excluding Licence fees total revenue is up 8.2% vs 1H23 and total revenue is 12.5% compared to 1H23

==> picture [114 x 23] intentionally omitted <==

19

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

CASH FLOW

We're a growing and cash-generative business committed to reinvesting for growth and returning funds to our shareholders

==> picture [879 x 262] intentionally omitted <==

• Since the beginning of 1H20 we have returned approximately $240m to our banks and shareholders

• We generated Operating Cash Flow of $30.4m and Free Cash Flow of $18.3m during 1H24

• During 1H24 we have paid down a further $16.6m of debt and returned $9.3m to our shareholders

• We have approximately $10m of working capital linked with a major customer upgrade, to be unwound over the next 12 months

==> picture [114 x 23] intentionally omitted <==

21

© H A N S E N

CAPITAL AND MARKET PERFORMANCE

==> picture [429 x 246] intentionally omitted <==

----- Start of picture text -----

Borrowings ($M)
80%
2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24
185.8
180.4
158.4
142.8
117.5
108.7
87.9
65.1
54.3
36.9
----- End of picture text -----

• Hansen's strong customer focus and our philosophy of treating business decisions with the same level of considerations as if we were making them for ourselves has ensured we maintain our robust cash position

• We have used our strong cash generation to consistently pay down our debts since the last acquisition and reduced our borrowings by $149m or 80% since 2H19

• At the close of 1H24 we were net cash positive at $8m

EPS Growth up 22.2% (CAGR) since 1H20 We have used our stable free cash flow to deliver consistent returns to shareholders over the same period

==> picture [58 x 58] intentionally omitted <==

Borrowing Levels Down $149m since 2H19 Since the peak in 2H19 our borrowings have decreased by 80% NPAT 58.0% payout ratio of NPAT in 1H24 We prioritise the careful return of funds to our shareholders while retaining sufficient capital for further acquisition opportunities

==> picture [114 x 23] intentionally omitted <==

22

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

Capitalised R&D ($M)

RESEARCH & DEVELOPMENT

==> picture [482 x 223] intentionally omitted <==

• Excludes $21m Telefonica revenue

• The anticipated R&D activities for 1H24 have been somewhat delayed while we focused our efforts on activities to support significant customer driven activities including the implementation of upgrades and new logo wins

• Our continuous growth has led to a highly modular product set, a deep and diverse knowledge base across our industries, and earned the ongoing trust of our customers

• Rapid innovations in the telecommunications industry drives demand for new technological enhancements as our customers seek to monetise 5G and IoT

• Cost to serve vs. customer satisfaction is the new battleground – our customers look to us to help them translate a Blockbuster business model to a Netflix experience

• In the Utilities space transitioning markets such as Virtual Power Plants, Electric Vehicles geo-political risk & carbon off-setting, are driving the needs for system replacements and upgrades

24

© H A N S E N

The rapid change in the industries we serve is presenting significant opportunities for Hansen to enhance our support offering to our existing and new customers Our products are market leading globally

Alignment to the TM Forum (industry body) is in high demand, our Open Digital Architecture (ODA) award has strengthened our credentials

We have delivered a successful cross-over of our Configure, Price, Quote and Catalog offerings into a large-scale Energy Retailer to support advanced product configuration & customer journey

==> picture [31 x 37] intentionally omitted <==

Hansen is using a two-pronged development approach that consists of increasing our product integration points with AI systems and building native AI capabilities into Hansen products

Our combined product capabilities, coupled with our flexible deployment methodologies allow us to satisfy more requirements than pure play Customer Information System (CIS) vendors

Our product offerings are External AI Ready and Purpose developed for key business use case integrations

We are actively supporting our customers to deploy novel use cases such as Virtual Power Plants (VPP) & Electric Vehicle

==> picture [114 x 23] intentionally omitted <==

25

© H A N S E N

Assists in the analysis of complex data-driven decision making. Removes

Product documentation and sprint planning are becoming quicker, improving employee

==> picture [40 x 41] intentionally omitted <==

Products

Enhances the features, functions

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

We are seeing several M&A opportunities come to the market

• Hansen has a well-established track record of value accretion through a disciplined and focused aggregation approach

• Economic factors are favourable for acquisitions

We continue to remain vigilant and evaluate potential aggregation opportunities

Some identified targets still have not transacted and we will continue to be patient

We won't acquire where our proven approach does not demonstrate a clear pathway for the business to be value accretive

Our focus remains on robust and mission critical companies:

• That have ownership of the IP

• That provide opportunities for regional expansion or leverage

• Have complimentary applications

• Provide potential other verticals, while leveraging our core skills

Our ‘Hansenisation’ approach to integration is proven

==> picture [114 x 23] intentionally omitted <==

28

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

FY24 GUIDANCE

==> picture [114 x 23] intentionally omitted <==

==> picture [808 x 377] intentionally omitted <==

----- Start of picture text -----

Hansen powercloud Combinedgroup
REVENUE GROWTH REVENUE REVENUE GROWTH
5-7% ~$16-18m 11-13%
On track to deliver original From 1 [st] February 2024 Strong existing Hansen growth +
guidance inorganic revenue
UNDERLYING EBITDA UNDERLYING EBITDA UNDERLYING EBITDA
+30% ~($7-8m) +26%
Margins expected to remain Short-term impact post Short-term margin dilution whilst
above historical averages acquisition powercloud ‘Hansenised’

© H A N S E N
----- End of picture text -----*

==> picture [114 x 23] intentionally omitted <==

30

==> picture [310 x 540] intentionally omitted <==

Q & A

==> picture [114 x 23] intentionally omitted <==

31

© H A N S E N

==> picture [114 x 23] intentionally omitted <==

© H A N S E N

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
	Dec-23	Dec-22
	$'000	$'000
Operating revenue	167,743	149,109
Finance Income	195	75
Other income	510	451
Total revenue from contracts with customers and other income	168,448	149,635
Employee benefit expenses	(93,531)	(80,850)
Amortisation expense	(16,552)	(16,260)
Depreciation expense	(6,647)	(5,660)
Property and operating rental expenses	(1,491)	(1,839)
Contractor and consultant expenses	(2,144)	(3,098)
Software licence expenses	(1,519)	(1,329)
Hardware and software expenses	(11,943)	(10,858)
Travel expenses	(1,478)	(1,174)
Communication expenses	(916)	(920)
Professional expenses	(3,174)	(2,692)
Finance costs on borrowings	(1,680)	(2,148)
Finance costs on lease liabilities	(457)	(372)
Foreign exchange (losses) /gains	(145)	900
Other expenses	(3,228)	(2,359)
Total expenses	(144,905)	(128,659)
Profit before income tax expense	23,543	20,976
Income tax expense	(5,922)	(4,798)
Netprofit after income tax expense for the half-year(NPAT)	17,621	16,178
Other comprehensive income/(expense)
Items that may be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations	(3,686)	(1,060)
Other comprehensive income/(expense)for the half-year,net of tax	(3,686)	(1,060)
Total comprehensive income for the half-year	13,935	15,118
Basic earnings (cents) per share attributable to ordinary equity holders of the Company	8.7	8.0
Diluted earnings (cents) per share attributable to ordinary equity holders of the Company	8.6	7.8

RECONCILIATION OF UNDERLYING EBITDA AND NPATA

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA)[1] - Reconciliation

Profit before income tax expense	23,543	20,976
Add back
Amortisation expense	16,552	16,260
Depreciation expense	6,647	5,660
Finance costs on borrowings	1,680	2,148
Finance costs on lease liabilities	457	372
Finance income	(195)	(75)
Foreign exchange losses / (gains)	145	(900)
EBITDA1	48,829	44,441
Add back
Separately discloseditems	3,274	596
Underlying EBITDA2	52,103	45,037

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

2 Underlying EBITDA, exclude separately disclosed items, which represent the one-off costs during the period. Further details of the separately disclosed items are outlined in Note 3 to the Financial Report which can be found on the Company’s web site.

Underlying net profit after tax before acquired amortisation, net of tax (NPATA[1] ) - Reconciliation

Netprofit after income tax expense for the half-year(NPAT)	17,621	16,178
Less
Tax effect of separately disclosed items	(833)	(149)
Separately discloseditems	3,274	596
Underlying net profit after income tax expense for the half-year (Underlying NPAT)2	20,062	16,625
Less
Less acquired amortisation, net of tax	6,911	7,351
Underlying net profit after income tax before acquired amortisation, net of tax (Underlying NPATA)2	26,973	23,976

• 1 Underlying net profit after tax but before acquired amortisation, net of tax or underlying NPATA exclude separately disclosed items, which represent the one-off costs during the period and acquired amortisation, net of tax.

2 Underlying net profit after tax or underlying NPAT exclude separately disclosed items, which represent the one-off costs during the period.

These statements should be read in conjunction with Hansen's financial reports and market releases on ASX.

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.

==> picture [114 x 23] intentionally omitted <==

33

© H A N S E N

AS AT 31 DECEMBER 2023

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

	Dec-23	Jun-23
	$'000	$'000
Current assets
Cash and cash equivalents	45,110	54,279
Receivables	50,003	57,152
Accrued revenue	40,447	28,319
Othercurrent assets	8,141	7,590
Total current assets	143,701	147,340
Non-current assets
Plant, equipment & leasehold improvements	14,318	15,051
Intangible assets	319,028	332,820
Right-of-use assets	12,024	13,648
Deferred tax assets	6,372	6,581
Other non-current assets	1,348	1,434
Total non-current assets	353,090	369,534
Total assets	496,791	516,874
Current liabilities
Payables	19,274	25,028
Current tax payable	291	796
Lease liabilities	5,682	5,434
Provisions	15,007	14,127
Unearnedrevenue	36,442	32,854
Total current liabilities	76,696	78,239
Non-current liabilities
Deferred tax liabilities	30,590	33,960
Borrowings	36,877	54,309
Lease liabilities	7,602	9,563
Provisions	559	409
Unearnedrevenue	714	1,514
Total non-current liabilities	76,342	99,755
Total liabilities	153,038	177,994
Net assets	343,753	338,880
Equity
Share capital	149,504	148,688
Foreign currency translation reserve	3,573	7,259
Share-based payment reserve	12,560	12,285
Retained earnings	178,116	170,648
Total equity	343,753	338,880

	Dec-23	Dec-22
	$'000	$'000
Cash flows from operating activities
Receipts from customers	183,019	153,644
Payments to suppliers and employees	(141,837)	(124,746)
Interest received	195	75
Finance costs on borrowings	(1,527)	(1,969)
Finance costs on lease liabilities	(457)	(372)
Income tax paid	(9,039)	(4,177)
Net cash from operatingactivities	30,354	22,455
Cash flows from investing activities
Payments for plant, equipment and leasehold improvements	(2,543)	(1,830)
Payment for capitalised development costs	(5,947)	(9,985)
Net cash used in investingactivities	(8,490)	(11,815)
Cash flows from financing activities
Repayment of borrowings	(16,599)	(20,905)
Repayment of lease liabilities	(3,577)	(3,256)
Dividends paid, net of dividend re-investment	(9,337)	(9,166)
Net cash used in financingactivities	(29,513)	(33,327)
Net increase in cash and cash equivalents	(7,649)	(22,687)
Cash and cash equivalents at beginning of the half-year	54,279	59,631
Effects of exchange rate changes on cash and cash equivalents	(1,520)	(437)
Cash and cash equivalents at end of the half-year	45,110	36,507

These statements should be read in conjunction with Hansen's financial reports and market releases on ASX.

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.

==> picture [114 x 23] intentionally omitted <==

34

© H A N S E N

==> picture [157 x 66] intentionally omitted <==

==> picture [116 x 66] intentionally omitted <==

© H A N S E N