HANSEN TECHNOLOGIES LIMITED — Investor Presentation 2015

Aug 31, 2015

Hansen Technologies Investor Presentation

2-3 September 2015

Hansen Overview

 Global provider of customer care and billing systems software and solutions

• 500 plus staff worldwide, with primary offices in Australia, USA, New Zealand, China, Denmark, Germany, Argentina, South Africa and the United Kingdom

• Hansen provides mission critical software that sits at the centre of our customers’ operations and cash flow

• High barriers to entry: track record of success + ownership of IP

• Long term relationships with customers

 Founded in 1971, listed on ASX in 2000

• History of profitable growth and strong cash flow generation

• Grown organically and via strategic acquisitions

 Our strategic matrix provides a solid platform for growth – our business is diversified across:

• Industry verticals - Utilities (Energy & Water), Communications (PayTV & Telco)

• Products

• Geographies

Full Year Results

A strong performance for the year, with growth over pcp positively impacted by organic growth and acquisitions

==> picture [702 x 313] intentionally omitted <==

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

Year Ending Jun -14 Jun-15 % change
A$ million
Operating Revenue 86.0 106.3 +24%
EBITDA 24.1 31.3 +30%
Profit before tax 19.5 24.0 +23%
Income tax expense (4.7) (7.1) +51%
Net Profit After Tax 14.8 16.9 +14%
Earnings per share (cents) 9.2 10.3 +12%
----- End of picture text -----

Year on Year Comparison

The year to June 2015 has benefited from the Banner and TeleBilling acquisitions (acquired May 2014 and May 2015 respectively), and organic growth in our core business

==> picture [574 x 389] intentionally omitted <==

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

24%
35%
A$m
30%
54%
12%
61%
cents per
share
----- End of picture text -----

Highlights

 Strong operating cash flows

• Addition of new customers

• Building a global platform: expanded regional operating structure to support growth

• Acquisitions: integration of Banner completed. Strategic acquisition of TeleBilling completed in May 2015 – paid $30m

• Capital raising: strong support from shareholders for the Institutional Placement and Share Purchase Plan raising in total $27m

• Repayment of debt: during the year repaid approximately $24m of bank debt, and since year end have also repaid the debt facility of $10m that was outstanding at June 2015

 Solid performance across our core business

Global Footprint

==> picture [687 x 324] intentionally omitted <==

Building Global Platform – New Structure

A regional operating structure supports our global business

==> picture [517 x 151] intentionally omitted <==

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

North
Europe Asia (new)
America
LATAM (new) MEA (new) ANZ
----- End of picture text -----

(Melbourne, Auckland, San Diego, Shanghai, Sonderborg)

Building Global Platform – New Roles

 New regional appointments:

• MEA Regional Manager

• LATAM Regional Manager

• Global HR Development Manager

• Global Sales Director

• Asia Regional Manager – to be appointed

• (1) Global Sales Director commencing October 2015

Our Core Business: Customer Care & Billing

==> picture [624 x 384] intentionally omitted <==

Strategic Matrix – Products and Industries

 While our focus is customer care & billing, we are diversified across a matrix of products and industries

==> picture [511 x 380] intentionally omitted <==

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

Utilities TV & Telco
Energy and Telecommunications
Energy – large retailers
& distributors
Energy – complex
billing and smart grid
Pay TV
Energy – market data
management
Energy and Water –
municipal market
Quad play
10
----- End of picture text -----

Strategic Matrix – Benefits

The benefits of our Strategic Matrix include:

1. Best of breed solutions – reap the benefits of scale and scope, being able to leverage product solutions and subject matter experts from across our business to meet the needs of different market segments

2. Stable platform - the business is not overly exposed to a single customer, product, industry or region. While not immune from market forces that affect all businesses, the mission critical nature of our proprietary software, added to our diversification, does provide a level of relative stability

• 3. Employee engagement enhanced career development opportunities for our staff, who are able to cross skill across technologies, industries and geographies

Experienced in Acquisitions

 Hansen targets acquisitions

• in and adjacent to its core

• with intellectual property

• with a similar business model - annuity/recurring revenues

• that extend its footprint - new market segment, geography, or industry vertical

2010	• •	Core business - customer care & billing Added US Commercial & Industrial segment	North America	Fully integrated
2013	• •	Core business - customer care & billing New industry vertical - PayTV	Global	Fully integrated
2013	• •	Adjacent to core business Energy market data management – cross sell	Australia	Fully integrated
2014	• •	Core business - customer care & billing Extended footprint into Water and muni market segment	North America & Caribbean	Fully integrated
2015	• •	Core business – customer care & billing Strengthens footprint in European Telco and PayTV	Europe	Integration progressing

TeleBilling Acquisition

The acquisition of TeleBilling (effective from 1 May 2015) has been a natural addition to the Hansen business:

• TeleBilling has an excellent product, an experienced team and an enviable client base

• Complements Hansen's existing billing and customer care products

• Brings a critical mass of established European Telecommunications and Pay TV clients to Hansen

• Provides a regional base for expanding Hansen’s solutions in Europe

The integration of TeleBilling into the Hansen family is progressing well

Outlook

The outlook for the current financial year ending June 2016 is for another record year:

• Expect revenues to exceed $135 million

• Continue to target an EBITDA margin in the range of 25-30%