HANSEN TECHNOLOGIES LIMITED — Investor Presentation 2013

Aug 26, 2013

==> picture [721 x 406] intentionally omitted <==

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

Hansen Technologies
Investor Presentation
27/28 August 2013
----- End of picture text -----

© Hansen Technologies 2009. May contain proprietary and confidential information. Not for distribution without permission.

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

Introducing Hansen Technologies

• Founded in 1971, Listed on the ASX (HSN) in 2000

Our team

• 400 plus staff worldwide, located in 12 countries with primary offices in Australia, UK, USA, NZ and China

• Stable management team

• IT staff tenure double industry average

Financial strength

• History of solid cash flow generation,

• No external debt

• Restructured and more distributed shareholder base

• History of dividend distribution

International operations

• Software solutions operating in 43 countries including Australia, Japan, UK, Spain, Ireland, New Zealand, Canada, USA, South America, Africa, Scandinavia, India, Middle East & China

• Strategic acquisitions in 2008, 2010 and 2013 x 2 all paid for from in house cash reserves

Key investment metrics

Client base – global presence

	Key investment metrics		Client base –globalpresence	Client base –globalpresence	Client base –globalpresence	Client base –globalpresence
	ASX code	HSN	North America Europe				Asia / Pacific
	Ordinary shares on issue	159.6 m
	Options on issue	4.3m
	Share price 23 August 2013	A$1.10
	Market capitalisation	A$175.5m
	Pro forma cash / debt	A$9.6m / nil debt
	Enterprise Value	A$165m
	Dividend FY12 / Yield	6 cents / 5.5%
	Board and management

David Trude	Chairman
Andrew Hansen	Managing Director and CEO
Bruce Adams	Non-Executive Director
Melinda Osborne	Non-Executive Director
Peter Berry	Non-Executive Director
David Osborne	Non-Executive Director
Grant Lister	CFO and Company Secretary

Major shareholders (as at 26 August 2013)

	Shares (m)	%
Othonna Pty Ltd – (Hansen family interest ) – after institutional placement in June 2013 of 21 million shares .	70.1	43.8

Fiscal 2013 financial result.	Fiscal 2013 financial result.	Fiscal 2013 financial result.	Fiscal 2013 financial result.	Fiscal 2013 financial result.	Fiscal 2013 financial result.	Fiscal 2013 financial result.
		2013 $A million			2012 $A million
		First half year	Second half year	Total
	Total revenue	26.8	37.0	63.8	56.6
	EBITDA	64	93	157	192
		.	.	.	.
	Profit before tax	5.4	7.2	12.6	17.0
	Income tax expense	(1.6)	(1.9)	(3.5)	(4.1)
	Net profit after tax	3.8	5.3	9.1	12.9
	Earnings per share	2.4 cents	3.2 cents	5.7 cents	8.2 cents

• Performance

• Quiet market for new business in the first half,

• Stronger second half performance and solid run rate,

• Leading into Fiscal 2014 with projected growth in revenue to exceed $75 million

• Increased investment for organic growth, particularly internationally

• Notable events

• International sourced revenue, now 60% of total and growing

• Two acquisitions closed and funded from internal cash when $Australian was above parity

• New customers/implementations in 2013, EDF and Suburban(USA), TrueVisions (Thailand), Wesfarmers Kleenheat Gas (Australia).

� Financial strength, well positioned

• Maintaining strong annuity revenue streams and cash generation

• Have been able to so far grow the business without calling upon any third party debt

• Have established banking relationships for prospective future lending if required

• Restructured the share register with Institutional placement in June 2013 and improved share liquidity

• Reducing the Hansen family shareholding to less than 50%

• Reduced the influence of the top 20 shareholders to less than 70%

• Increased the shareholder base to 3,500 plus

• Average daily turnover increased

• Introduced institutional shareholding

• Australian software house

• software factories in Melbourne, Auckland, Shanghai , San Diego

• specialising in proprietary complex Billing software solutions

  • mission critical software at the heart of customers cash flow

  • sticky software with lengthy service life within well managed customer relationships

• Service focus – operate software for our customers

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

• Predictable and stable annuity revenue stream underpinning the financial model

• Customers spread by geography and industry

• stable industries, Energy, Telecommunications, Pay TV

==> picture [70 x 69] intentionally omitted <==

==> picture [102 x 84] intentionally omitted <==

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

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

==> picture [49 x 58] intentionally omitted <==

TELECOM PAY-TV ENERGY Customer care and Customer care and Customer care, billing and market billing solution billing solution data management solutions Electric, Gas, & Water Utilities Mid-tier MVNOs DTH DTT Cable Regulated Competitive Networks Utilities Retailers retailers Mobile Virtual Direct-toDigital Network Operator Home Terrestrial Television

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

HOSTING & PROFESSIONAL SERVICES

• Purpose built data centre facilities

• Application management

  • IT Managed services

• Pursue wall-to-wall services for our customers

• Turn key packaged solution and any other variable specified by the customer

• Sell existing suite of products to new customers

• HUB, Peace,Utilisoft and Nirvanasoft for Energy/Telco

• � ICC for Pay TV

• Acquisitions that leverage our knowledge and location

• As a mid-cap, Hansen has a successful disciplined M&A track record

• Peace, NirvanaSoft, ICC, Utilisoft

• Hansen acquires

• in and adjacent to its market segments

• to gain additional market reach

• Strong business review and gating culture

• Tried and tested business integration

• Fiscal 2014

• Revenue outlook $75 million plus

• Strong return of 25% plus EBITDA targeted

• Exciting outlook

• Increasing number of new sales prospects identified

• Successfully integrated the recent acquisitions and outlook looks solid

• Continue to evaluate compatible strategic growth opportunities