HANSEN TECHNOLOGIES LIMITED — Investor Presentation 2021

Aug 23, 2021

1

==> picture [127 x 34] intentionally omitted <==

==> picture [89 x 17] intentionally omitted <==

© H A N S E N T E C H N O L O G I E S

IMPORTANT NOTICE

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

Information contained in this presentation:

• 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

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

• 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

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

• 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.

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

Definitions

• 1H21 = six months ended 31 December 2020

• 2H21 = six months ended 30 June 2021

• FY21 = financial year ended 30 June 2021

• FY22 = financial year ended 30 June 2022

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

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

• NPAT = Net profit after tax

• NPATA* = Net profit after tax excluding tax effected amortisation of acquired customer and technology intangibles

*EBITDA, EBIT, NPATA, Recurring revenue and Non-recurring revenue are non-IFRS measures that have not been audited or reviewed by Hansen’s auditors

==> picture [89 x 17] intentionally omitted <==

2

© H A N S E N T E C H N O L O G I E S

AGENDA.

Company overview and results highlights

Dividend and outlook

Q&A

==> picture [89 x 17] intentionally omitted <==

3

© H A N S E N T E C H N O L O G I E S

GAS, ELECTRICITY AND WATER

HANSEN.

A global technology company serving the Gas, Electricity, Water and Communications industries.

600+ 80+ Tier 1 and 2 customers

Customers Countries Globally

==> picture [429 x 123] intentionally omitted <==

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

25%
49% 51%
58%
17%
EMEA APAC Americas Gas, Electricity and Water Communications
----- End of picture text -----

Regionally entrenched and global challenger to SAP and Oracle.

==> picture [159 x 16] intentionally omitted <==

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

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

CREATE-DELIVER-ENGAGE

We develop and implement purpose-built software enabling our customers to create and bring to market new products and services faster, sell and deliver them flawlessly to customers and engage meaningfully at all points of customer interaction.

==> picture [160 x 44] intentionally omitted <==

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

Agile innovation &
quick to market
----- End of picture text -----

© H A N S E N T E C H N O L O G I E S

4

GAS, ELECTRICITY AND WATER

THE HANSEN MISSION.

To further grow our best-in-class core business through aggregating mature, entrenched and predictable businesses in the energy and communications sectors.

OUR STRATEGY.

To transform our customers from basic ‘utilities’ to suppliers of new energy related products and services

Leverage our global experience

• Leverage new and existing technologies

• Cross-sell

COMMUNICATIONS

“Hansenisation” of aggregated businesses

• Deploy proven and agile technology methodologies

• Predictable management and systems

Diversification

• Vertical, geographic and customer diversification

To enable Telcos to innovate freely and monetize the 5G & complex B2B segment opportunity

Future opportunities

• A disciplined approach to further aggregation opportunities

5

© H A N S E N T E C H N O L O G I E S

RECENT DEVELOPMENTS.

BUSINESS AS USUAL FOR HANSEN TECHNOLOGIES.

==> picture [721 x 386] intentionally omitted <==

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

1
A focused internal team is working on the
Offer from BGH Capital on 7 June BGH Capital process; executive team
undistracted
2
Due diligence has commenced with the
No impact on customers or execution on
Exclusivity Period ending on 25 August
strategy; “business as usual”
2021
3
As at of the date of this presentation, the Will continue to update the market with
bid remains active any new developments.
----- End of picture text -----

==> picture [89 x 17] intentionally omitted <==

6

© H A N S E N T E C H N O L O G I E S

50-YEAR TRACK RECORD IN TECHNOLOGY.

DRIVEN BY MANAGEMENT WITH >17 YEARS WITH THE COMPANY ON AVERAGE.

Beginnings Diversification

Public company

Aggregation acceleration

• Founded in 1971 to • Diversified across focus on the customers, geographies management of and verticals to create a customer and well-diversified, predictable organisational data. and defensive business.

• • • Beginning with one Developed Hansen Unified customer where we Billing (“HUB”). didn’t own the IP, we • Pioneers in providing some shifted to owning our of the first web-based selfown IP and service and browser- based

• expanding customer customer care solutions to numbers. the market.

• IPO of Hansen • Rapid growth with revenue CAGRs of around 20% through Technologies in 2000 several progressive and strategic acquisitions that have driven by existing expanded our geographic scope and enhanced the business management team. of our valued customers in our existing verticals.

• •

• Sell down by early major We have a strong track record of value-accretive acquisitions shareholders to diversify and their integration and have built a share register. global business well positioned to aggregate $500m more and larger businesses.

• Focus on being a •

• technology company that Confidence in organic and makes profits and acquisition growth outlook - targeting generates cash flow. $500m of revenues in FY25.

• Early beginning of acquisition strategy as more value accretive to acquire businesses in new geographies than enter organically.

1971

2000 2010 FY21

2010 FY21 FY25 Group revenues (LHS) APAC revenues EMEA revenues Americas revenues

==> picture [89 x 17] intentionally omitted <==

7

© H A N S E N T E C H N O L O G I E S

FY21 HEADLINES.

ANOTHER RECORD YEAR.

REVENUE[1]

UNDERLYING EBITDA[2]

UNDERLYING NPATA[3]

$325.5m

8% (constant currency) $307.7m (reported)

$128.1m

(constant currency) $120.2m (reported) 39.4% margin

==> picture [96 x 63] intentionally omitted <==

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

50%
----- End of picture text -----

$79.2m (constant currency) $73.1m (reported)

==> picture [95 x 63] intentionally omitted <==

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

69%
----- End of picture text -----

FY21 guidance: $316m - $326m (constant currency)

FY21 guidance: 37% - 39%

$306m - $316m (reported)

REVENUE DERIVED FROM OWNED IP

REVENUE VISIBILITY

97%

95%

Note: base of exchange rates for constant currency calculations is the average exchange rate for FY20.

1. FY21 revenues of $325.5m on a constant currency basis; on actual exchange rates FY21 revenue was $307.7m; 8% gain is on constant currency revenue.

2. 50% gain is on underlying FY21 EBITDA excluding non-recurring items; 39.4% margin is underlying constant currency EBITDA of $128.1m / constant currency revenue of $325.5m.

3. Underlying NPATA = Net profit after tax excluding tax effected amortisation of acquired intangibles and non-recurring items; 69% gain is on underlying FY21 NPATA excluding non-recurring items of $0.1m after tax on a constant currency basis.

==> picture [89 x 17] intentionally omitted <==

8

© H A N S E N T E C H N O L O G I E S

FY21 HEADLINES.

ANOTHER RECORD YEAR.

ADJUSTED EPSa[1]

DIVIDEND

NET DEBT[2]

39.5c ADJUSTED EPS[3] DIVIDENDS 5c (interim paid) + $66.6m NET DEBT[4] $49.9m 65% (constant currency) + 36.7c (reported) 5c (final)

Note: base of exchange rates for constant currency calculations is the average exchange rate for FY20.

1. Adjusted Basic EPS, based on Underlying NPATA; 65% gain is on constant currency EPSa.

2. Net Debt excluding AASB 16 lease liabilities

3. Based on current exchange rates.

==> picture [89 x 17] intentionally omitted <==

9

© H A N S E N T E C H N O L O G I E S

ANOTHER RECORD SET OF RESULTS.

RECORD EARNINGS.

==> picture [881 x 215] intentionally omitted <==

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

REVENUE ($M) [1] UNDERLYING EBITDA [2] ($M) UNDERLYING NPATA [3] ($M)
8% 50% 69%
325.5
128.1 79.2
17.8 8.0
6.1
301.4 307.7 120.2 73.1
230.8 231.3 85.7
106.3 149.0 174.7 34.1 49.7 51.0 66.7 63.1 19.1 28.6 28.0 38.7 33.7 46.9
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21
----- End of picture text -----

• Continued resilience and growth of revenues, including with new strategically significant customer wins.

• Strong new logo wins contributing to organic revenue growth of 8.1%.

• Telefonica contract contributing $21m of revenues in FY21 under IFRS15 revenue recognition.

• Revenues from our owned IP of 97%.

Notes:

• Underlying EBITDA increased 50% to $128.1m

• (39.4% margin) due in part to revenue recognition of Telefonica contract; excluding Telefonica, the margin is 35%; the top of our long-term margin target range.

• Continued operating leverage and cost reductions also helping improve margins.

• Efficiencies from regional management and Indian and Vietnam development centres, with significant investment in the centres to meet demand from existing and potential customers.

• Effective tax rate increased from 13.8% in FY20 to 18.3% in FY21 as previously acquired tax losses were utilised.

• Continued “Hansenisation” to Sigma and broad cost reductions, margins have been improved.

• Significant pay-down of debt reducing interest rate margin and cash burden by annualised c. $2.3m from start of year.

• Reported revenues of $307.7m with currency impact of $17.8m of most recent period shown (base of exchange rates for constant currency calculations is the average exchange rate for FY20).

• FY21 EBITDA = Underlying EBITDA excluding $3.6m of non-recurring items; currency impact of $8.0m of most recent period shown.

• Underlying NPATA: net profit after tax excluding tax effected amortisation of acquired intangibles and one-off items; currency impact of $6.1m of most recent period shown.

==> picture [89 x 17] intentionally omitted <==

10

© H A N S E N T E C H N O L O G I E S

ANOTHER RECORD SET OF RESULTS.

STRONG CAPITAL MANAGEMENT.

==> picture [882 x 220] intentionally omitted <==

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

EPSa [1] (Cents) NET DEBT [2] ($M) DPS (Cents)
65% 43%
151.4
39.5
2.8 116.5
2.0
5.0
66.6 1.0 1.0
36.7 46.7 5.0
3.0 3.0 3.0 3.0
23.9 27.2
19.8 5.0
11.6 16.6 15.6 17.1 10.5 3.0 3.0 3.0 3.0 3.0
0.0
FY16 FY17 FY18 FY19 FY20 FY21
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Interim Final Special
----- End of picture text -----

• Revenue recognition of Telefonica also flowing down to EPSa, driving a large part of the significant gains.

• Use of debt to grow EPS by managing cost of capital.

• Group margin expansion driving significant EPS upside.

• Cash flows enabling significant reduction in net debt.

• Total available liquidity = $85.4m, comprising cash of $52.1m and $33.3m undrawn of the debt facility.

• Strong capital structure and liquidity position supports an increased dividend.

• Significant headroom (leverage of 0.55x[3] ) for more aggregations.

• Total FY21 dividend of 10.0c an increase of 25% of FY20 base dividend.

• Cash flows ensure continued opportunity for investment in products and new aggregations.

Notes:

1. Adjusted Basic EPS, based on Underlying NPATA; currency impact of $2.8m of most recent period shown (base of exchange rates for constant currency calculations is the average exchange rate for FY20). 2. Net Debt excluding AASB 16 lease liabilities for FY20 and pre-paid borrowing costs.

2. Leverage ratio: net debt (including pre-paid borrowing costs) / EBITDA excluding impact of IFRS16 and non-recurring items.

==> picture [89 x 17] intentionally omitted <==

11

© H A N S E N T E C H N O L O G I E S

ANOTHER RECORD SET OF RESULTS.

RECORD CASH FLOW, REDUCTION IN NET DEBT AND INCREASED OPPORTUNITIES FOR GROWTH.

==> picture [843 x 272] intentionally omitted <==

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

$3.6m $120.2m
$116.6m
($20.3m)
($4.9m)
($12.1m) $73.1m $2.4m
$70.1m
($6.1m)
($3.1m)
($41.7m)
$7.6m
($21.9m) ($1.2m)
Reported Non-Recurring Underlying Telefonica Capex Product Lease rental Gross Cash Interest on debt Free cash flow Issue of equity Debt Dividends paid Net FX Net cash flow
EBITDA Items EBITDA Development payments flow & tax repayments
----- End of picture text -----

• Very strong Free Cash Flow of $70.1m, up from $44.2m in FY20.

• Telefonica amount is receivables contractually due in December 2021. Excluding this, working capital outflow was flat.

• Net debt reduced by $49.9m to $66.6m following $41.7m of debt repayments + net cash inflow & debt FX impact.

• Leverage ratio[1] of 0.55x vs 1.46x in FY20, highlighting significant headroom for further borrowing capacity given Board’s comfort of 3.0x – 3.5x.

Notes:

==> picture [89 x 17] intentionally omitted <==

1. Leverage ratio: net debt (including pre-paid borrowing costs) / EBITDA excluding impact of IFRS16 and non-recurring items.

12

© H A N S E N T E C H N O L O G I E S

KEY ACHIEVEMENTS IN FY21.

1 2

STRATEGICALLY SIGNIFICANT SIGNIFICANT TECHNOLOGY AND CONTINUED CUSTOMER WINS ORGANISATIONAL INVESTMENT

3 STRONG PROFITABILITY AND CASH FLOWS

• Customer wins in:

• 5G Telecoms :

==> picture [55 x 23] intentionally omitted <==

==> picture [76 x 21] intentionally omitted <==

==> picture [44 x 17] intentionally omitted <==

==> picture [43 x 17] intentionally omitted <==

• Smart energy:

==> picture [104 x 28] intentionally omitted <==

==> picture [67 x 42] intentionally omitted <==

==> picture [112 x 23] intentionally omitted <==

• Renewables (including solar) :

==> picture [100 x 19] intentionally omitted <==

• Development centres : strong recruitment of new developers to deliver future pipeline.

• Cloud relevance for products : all our products are available on-prem, SaaS solution, public cloud or Hansen-provided cloud providing ultimate choice for customers.

• Head of Strategic Sales : driving key customer relationship development and sales efforts to grow cash generative core.

• M&A team : focused team to search and screen for all relevant aggregation opportunities for optimal, value-accretive acquisition growth.

• Continued positive momentum in EBITDA margins.

• Driven by the continued rationalisation of the Company’s cost base driven by the global pandemic, as well as reduced travel.

• Margin enhanced by the revenue recognition of the Telefonica contract, with $21m recognized upfront.

• “Spend it like it is your own” continues to be the focus as profitability improves.

• Targeting EBITDA margins of 32% - 35% over the long-term.

• Expectations of continued regulatory change driving organic growth.

Growth, investment and profitability improvements across the business while positioning for “COVID-normal”.

==> picture [89 x 17] intentionally omitted <==

13

© H A N S E N T E C H N O L O G I E S

AGENDA.

Company overview and results highlights

Dividend and outlook

Q&A

==> picture [89 x 17] intentionally omitted <==

14

© H A N S E N T E C H N O L O G I E S

CAPITAL MANAGEMENT.

CONTINUING TO PAY STRONG DIVIDENDS AND PAY OFF DEBT FOR THE NEXTSTAGE OF GROWTH.

NET DEBT ($M)

Our position:

• In FY21, net debt was reduced by $49.9m to $66.6m.

• Leverage ratio[1] = 0.55x as at 30 June 2021.

• Well supported by banks with new facility negotiated with lower margin interest rates and improved structure.

• Board is comfortable with gearing levels of 3.0x – 3.5x net debt / EBITDA to support valueaccretive acquisition growth.

Capital management philosophy:

• Having considered Hansen’s capital requirements, strong capital structure and liquidity position, the Board has determined a final dividend of 5.0 cents per share is appropriate; this is 54% franked and represents a 25% payout ratio[2] for FY21.

• Level of dividend is at the discretion of Board subject to available cash and activity being undertaken at the time – as and when acquisition growth opportunities are executed, this dividend may be reduced to allocate capital to our acquisition growth strategy.

• Hansen’s strong cash generation means that even with this strong dividend payment we have the cash flows to invest in our products and fund acquisitions.

==> picture [277 x 291] intentionally omitted <==

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

116.5
$49.9m
DOWN 66.6
FY20 FY21
DIVIDEND (Cents)
2.0
5.0
1.0 1.0
5.0
3.0 3.0 3.0 3.0
5.0
3.0 3.0 3.0 3.0 3.0
FY16 FY17 FY18 FY19 FY20 FY21
Interim Final Special
----- End of picture text -----

Leverage ratio[1] to 0.55x as at 30 June 2021; down from 1.46x as at 30 June 2020.

Notes:

1. Leverage ratio: net debt (including pre-paid borrowing costs) / EBITDA excluding impact of IFRS16 and non-recurring items. 2. Dividend of 10c / underlying constant currency EPSa of 39.8c.

==> picture [89 x 17] intentionally omitted <==

15

© H A N S E N T E C H N O L O G I E S

LONG-TERM FINANCIAL TARGETS.

ON TRACK FOR OUR LONG-TERM FINANCIAL TARGETS.

==> picture [819 x 359] intentionally omitted <==

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

$600m
Targeting $500m
Aggregation (size of bubble illustrative of transaction size)
revenue by FY25
$500m
$400m
PPL
Enoro Sigma
•
By organic
$300m HiAffinity
revenue growth
Telebilling and our proven
Banner aggregation
$200m Utilisoft strategy.
Nirvanasoft • EBITDA margin
target of 32% -
$100m 35%.
$0m
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Group revenues (LHS) APAC revenues EMEA revenues Americas revenues EBITDA (RHS) 1
Revenues
----- End of picture text -----

==> picture [172 x 302] intentionally omitted <==

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

Targeting $500m $140m
revenue by FY25
$120m
$100m
$80m
$60m
$40m
$20m
$0m
EBITDA
----- End of picture text -----

Notes:

1. EBITDA presented as EBITDA adjusted for non-recurring items and net foreign exchange gains (losses), presented on a reported currency basis for historical comparability.

==> picture [89 x 17] intentionally omitted <==

16

© H A N S E N T E C H N O L O G I E S

CONCLUSION.

1. This has been another great year for our company and shareholders.

2. . Strategic customer wins driving continued organic growth

3. With our M&A process progressing we are confident of driving our acquisition growth .

4. We are focused on driving our strategic agenda while the BGH Capital process unfolds.

==> picture [89 x 17] intentionally omitted <==

17

© H A N S E N T E C H N O L O G I E S

WHAT YOU HAVE IN HANSEN.

✓ Established in 1971.

✓ A highly proven and talented Executive management team.

✓ A predictable and cash generative focused business.

• ✓ Owners of pre-eminent software IP at the very heart of our customers.

• ✓ Serving mature and established industries.

• ✓ High barriers to entry.

• ✓ Subject matter experts in our field.

• ✓ 97% of all revenues derived from owned IP.

✓ Track record of >30 very successful acquisitions.

• ✓ A play book for aggregation of largely regionalised and disparate competitors.

• ✓ A great long-term future ahead.

==> picture [89 x 17] intentionally omitted <==

18

© H A N S E N T E C H N O L O G I E S

AGENDA.

Company overview and results highlights

Dividend and outlook

Q&A

==> picture [89 x 17] intentionally omitted <==

19

© H A N S E N T E C H N O L O G I E S

Q&A

==> picture [89 x 17] intentionally omitted <==

© H A N S E N T E C H N O L O G I E S

==> picture [491 x 119] intentionally omitted <==

© H A N S E N T E C H N O L O G I E S