HANSEN TECHNOLOGIES LIMITED — Investor Presentation 2017

Apr 27, 2017

==> picture [780 x 141] intentionally omitted <==

Investor Presentation Goldman Sachs Small/Mid-Cap Conference 28 April 2017

Important notices

Important notice and disclaimer

This presentation has been prepared by Hansen Technologies Limited (Hansen). The information contained in this presentation is intended to be general background information only and does not purport to be complete. It is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. No representation or warranty is made as to the accuracy, completeness or reliability of the information and disclaim any responsibility and liability flowing from the use of this information by any party.

Forward looking statements

The presentation may contain forward looking statements or statements of opinion, including Hansen’s current expectations about the performance of its businesses. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or opinions or the assumptions on which either are based. All such information is, by its nature, subject to significant uncertainties, many of which are outside the control of Hansen. As such, undue reliance should not be placed on any forward looking statement.

Non-IFRS financial information

Hansen uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards or IFRS. These measures are referred to as non-IFRS financial information. Hansen considers that this non-IFRS financial information is useful to assist in evaluating Hansen’s performance. The information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Non-IFRS information has not been subject to audit or review in accordance with Australian Auditing Standards.

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

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

1

About Hansen

• 40+ years in operation

• Listed on ASX in 2000

• ~ A$620m market capitalisation

• Leading global provider of billing and customer care solutions to 4 industry verticals:

• Energy

• Water

• Telcos

• Pay TV

• ~200 customers in 45+ countries

• 800+ staff spread globally to support our customers

Share Register

==> picture [307 x 269] intentionally omitted <==

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

Andrew
Hansen
20%
Retail
50%
Institutions
30%
----- End of picture text -----

As at March 2017

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

2

Hansen – a provider of billing and customer care solutions

==> picture [174 x 37] intentionally omitted <==

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

Who for?
----- End of picture text -----

Our Customer Information Systems (CIS) manage the lifecycle of a consumer – from usage data to cash

==> picture [621 x 335] intentionally omitted <==

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

Energy
providers
Usage Data Bill
Water
companies
Telcos
Pay-TV
operators
Consumer
----- End of picture text -----

==> picture [136 x 12] intentionally omitted <==

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

Utility/Service Provider
----- End of picture text -----

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

3

Our competitive advantage is …

==> picture [690 x 131] intentionally omitted <==

Our	Our	Our	Our	Our	Our
focus	global	sector	track	people	partnerships
	presence	diversity	record
… we only do	… both in	… across	… we’ve built	… their deep	… the long term,
billing	developed &	energy, water,	significant	experience &	one-to-one
	emerging	telcos and	credibility &	expertise	relationship we
	markets	pay-tv	referenceability	– with average	have with our
				tenure of more	customers
				than 7 years

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

4

A diversified customer base across multiple industries and geographies

Revenue by Vertical

Revenue by Region

==> picture [654 x 269] intentionally omitted <==

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

Other
4%
APAC
Pay TV
23%
20%
EMEA
Energy
41%
45%
Telcos
Americas
26%
37%
Water
7%
----- End of picture text -----

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

Based on 1H 2017 Revenue

5

200+ customers … mostly Tier 1 / Tier 2 names

==> picture [684 x 386] intentionally omitted <==

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

Utilities Telcos Pay TV
----- End of picture text -----

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

6

The Hansen / Customer relationship

==> picture [690 x 131] intentionally omitted <==

Long-term partnership

… we’re there to deliver & support business outcomes for our customers

One-to-one relationship

… we deploy our applications ourselves – rather than use third-party system integrators

Managed service offering

… for many of our customers we also host/manage our application – so they can focus on running their business

Recurring revenue model

… our preferred model is ongoing periodic fees – rather than upfront licence fees

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

7

800+ staff spread across 15 offices to support our customers

==> picture [695 x 393] intentionally omitted <==

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

Sonderborg
London
Hamburg
New York
Carlsbad Bethlehem & Hazelton
Atlanta
Columbia
Shanghai
Mumbai
Auckland
Johannesburg
Buenos Aires
Melbourne
----- End of picture text -----

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

8

Macro drivers of new opportunities

==> picture [690 x 131] intentionally omitted <==

Competition

• Deregulating markets encourages new participants – e.g. Japanese energy market

• Competitive forces drives market differentiation – requiring more sophisticated systems

Complexity

• Bundling of products by service providers – owning more of the home

• Smart meters – creates more

• data and enables new pricing structures

Change

• Digitisation – expands the service offering

• Technology – drives the refreshing of legacy systems

• Burgeoning emerging market middle class – expands the user base of services

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

9

What we are looking for in acquisition opportunities

==> picture [690 x 131] intentionally omitted <==

Business Owns Strong customer Extends our is billing its IP base footprint … or adjacent thereto … that is proven in … that will deliver … into a new the marketplace recurring revenues geography, market and we can build segment or industry upon vertical

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

10

A successful track record of strategic acquisitions

Peace

Nirvanasoft

CIS for large energy Complex billing retailers & distributors solution for US energy – US market entry providers

Banner

Water & energy CIS for US municipalities

Solutions

Billing & outsourcing solution for US energy retailers

HiAffinity

==> picture [681 x 88] intentionally omitted <==

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

Water CIS in the UK
and Australia
2007 2009 2011 2013 2015
2008 2010 2012 2014 2016
----- End of picture text -----

ICC

Pay TV billing – a new vertical

TeleBilling

Quad-play CIS for European Telcos

Utilisoft

Market gateway for Australian energy market interaction

==> picture [662 x 93] intentionally omitted <==

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

Revenue (A$m)
149
106
86
54 58 58 57 64
32 39
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
----- End of picture text -----

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

11

Case Study: Expanding our position in the Asian pay-tv market

Asian pay-tv market: multiple drivers are at play …

Significant competition forcing differentiation to extend market reach

Ever changing Burgeoning middle Digitisation process media landscape class increasing providing more compelling players subscriber base, as channels, a higher to add/modify well as driving quality service and services content quality and accountability to service expectations government

Growing our position:

==> picture [209 x 43] intentionally omitted <==

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

2013 2015
----- End of picture text -----

Videocon in India an existing client of ICC upon acquisition

Won Hindujas group in India as a customer – leveraging our local capabilities and the product’s scalability

Continuing sales pipeline 2015 2016 Won Dish Home in Won MNC in Nepal as a customer Indonesia as a – subscriber customer numbers have increased from 350K to 820K since going live in Jan 2016

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

12

Financial snapshot

Revenue ($m)

==> picture [318 x 154] intentionally omitted <==

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

FY17 Guidance:
149.0 $165m - $175m
106.3
86.0 86.9
63.8
2013 2014 2015 2016 1H17
----- End of picture text -----

NPATA[1] ($m)

==> picture [289 x 154] intentionally omitted <==

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

28.6
19.1
15.9 15.3
9.7
2013 2014 2015 2016 1H17
----- End of picture text -----

EBITDA ($m)

==> picture [316 x 154] intentionally omitted <==

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

FY17 Guidance:
45.4 25%-30% margin
31.3
24.1 23.8
15.7
2013 2014 2015 2016 1H17
----- End of picture text -----

==> picture [288 x 170] intentionally omitted <==

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

EPS [2] (c)
CAGR = 38% 16.1
11.6
9.9
8.5
6.1
2013 2014 2015 2016 1H17
----- End of picture text -----

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

1. NPATA = Net profit after tax excluding amortisation of acquired intangibles 2. EPS based on NPATA

13

Hansen summary

1

2

3

4

5

6

==> picture [44 x 45] intentionally omitted <==

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

7
----- End of picture text -----

Diversified customer base across multiple industries and geographies

“Sticky” customer base

Business model drives recurring revenue streams

Exceptionally talented team of in-house industry experts

Strong credibility and referenceability

Strong cash generation and financial position ($17.8m of cash and $2m of debt at Dec-16)

Successful track record of adding shareholder value via acquisitions

==> picture [106 x 31] intentionally omitted <==

==> picture [8 x 22] intentionally omitted <==

14