HANSEN TECHNOLOGIES LIMITED — Investor Presentation 2016

Feb 15, 2016

Hansen Technologies Investor Presentation

16-17 February 2016

Hansen Overview

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

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

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

• Our systems are the primary source of our customers’ client data

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

• Long term relationships with customers

 We have a proven track record of acquiring and integrating aligned businesses

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Strategic Matrix

Our business is diversified across a matrix of industry verticals, products and geographies. 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

Our Core Business: Customer Care & Billing

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Customer Care and Billing

Dynamic Market Opportunities

Pay TV & Telco

 Growth in emerging markets for Pay TV with new service providers, and increased subscribers

• Increasing Quad play opportunities

• Utilities

• Increased billing complexity through introduction of Smart Meters

• Move to full retail contestability in markets such as Japan

• Gather customer data for billing

• Interpret service usage data

• Maintain and apply complex pricing via rating engine

Hansen is well placed to respond to these opportunities with deep experience gained from operating in a multitude of markets

• Generate customer billing

Full Year Results

A strong first half with revenue growth over pcp positively impacted by organic growth and the TeleBilling acquisition

Half Year Ending	Dec -14	Dec - 15	%
A$ million			change
Operating Revenue	49.2	74.0	+50%
EBITDA	15.9	22.3	+40%
Profit before tax	12.5	17.8	+42%
Income tax expense	(3.7)	(5.1)	+38%
Net Profit After Tax	8.8	12.6	+43%
Earnings per share (cents)	5.4	7.1	+31%

First Half Highlights

• Double digit organic growth via new business and enhancements to existing customers

• Strong EBITDA and operating cash flow performance

• $10m loan repaid

• New six region operating structure now fully implemented

• Current cash balance of $26.3m

Historical Performance Comparison

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Revenue
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EBITDA
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35%
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A$m

A$m

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EPS
Cents per
Share
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Revenue by Currency

Revenue by Major Currency H1 2014

Revenue by Major Currency H1 2015

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Note: Danish Kroner is expressed as EURO given the peg between the two currencies.

Strategic Initiatives

Overarching Goals

1. Grow Revenue – consistent organic revenue growth

2. New business

3. • Existing clients

4. Maintain margins – target 25-30% EBITDA margin

5. Build Global Platform

6. Develop people & build systems to support our global ambition

7. • Aligned M&A

How do we get there?

1. Grow Revenue 2. Maintain Margins 3. Build Global Platform

Key Initiatives

Products	Product Strategy	Product Strategy	Product Strategy	Thought Leadership	Thought Leadership	Thought Leadership	New Product Streams
Delivery	Optimise Delivery Centres					Emerging Markets Strategy
Sales & Marketing	Build Global Marketing Function		Grow Services Revenue			Elevate Corporate Brand
Corporate Support	Optimise Corporate Structure		Aligned M&A			Build Global Finance Function
People & Organisation	Maintain the Hansen Way	Build People Capital			Global Sales Head		New Regional Structure

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 that makes it a natural fit for Hansen

• 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.

• Extends Hansen’s capabilities to also include Enterprise Resource Planning (ERP) and Customer relationship Management (CRM)

• Adds Quad Play (fixed line, mobile, broadband, Pay TV) billing capacity to Hansen’s product range

The integration of Telebilling into the Hansen family is complete

Outlook

 In line with previous guidance, we believe that Revenue and EBITDA achieved in these results will broadly be replicated in the second half of the year provided favourable trading terms are maintained