Hansen Technologies FY2016 Results Investor Presentation.

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Presentation transcript:

Hansen Technologies FY2016 Results Investor Presentation

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 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. The material contained in this presentation may include information derived from publicly available sources that have not been independently verified. 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 This presentation contains certain forward looking statements and comments about future events, including Hansen’s current expectations about the performance of its businesses. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings or financial position or performance are also forward looking statements. Forward looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward looking statements will not be achieved. Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors which can cause Hansen’s actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements and many of these factors are outside the control of Hansen. As such, undue reliance should not be placed on any forward looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward looking statements, forecast financial information or other forecast. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Hansen. Pro forma 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.

Hansen … Who are we? We are a global provider of billing systems and customer care software Our customers are utilities (electricity, gas and water providers), telcos and pay TV operators Circa 200 spread across 40+ countries Our software sits at the heart of our customers’ operations providing for long term relationships Significant barriers to entry exist through: the complexity of what we do our track record of success ownership of our IP We have 800+ team members representing 40+ nationalities spread across offices in Australia, USA, New Zealand, China, Denmark, Germany, Argentina, the UK and South Africa Our core strategy to grow the business is very simple: Service our existing customers exceptionally well Source new customers by offering best of breed applications Make targeted acquisitions to extend the Hansen footprint into a new market, a new geography and/or a new industry segment

FY2016 financial summary Revenue $149.0m 40% on FY15 EBITDA $45.4m 45% on FY15 NPATA1 $28.6m 50% on FY15 EPS2 16.1 cents 38% on FY15 DPS 7.0 cents 6.0 cents in FY15 Cash $30.2m $22.0m last year NPATA = Net profit after tax excluding acquired amortisation (refer page 6) EPS based on NPATA

EBITDA ($m) & EBITDA margin (%) Revenue and EBITDA High organic growth, the full year impact of the TeleBilling acquisition and strong employee utilisation produced an exceptional FY2016 … Revenue ($m) EBITDA ($m) & EBITDA margin (%) Growth 35% 24% 40% Growth 53% 30% 45%

Revenue movement – FY2015 to FY2016  Positive FX impact due to stronger conversion rate of foreign currency revenue compared to FY2015 TeleBilling acquired 1 May 2015 Movement represents incremental revenue in FY2016 compared to FY2015 FY2016 exceeded expectations due to Hansen’s assistance with delivery of a backlog of revenue  Revenue by Currency FY2016  

Profit and loss detail Effective tax rate of 28.4% in FY2016 compares to 29.4% in FY2015 Acquired amortisation is the amortisation of identifiable intangible assets (namely technology, trademarks and customer contracts) arising from business combinations Tax effected at 30%

Cash flow Strong free cash flow of $25.3m $10m debt repayment leaves no debt outstanding $5.5m capitalised development costs compares to $2.9m amortisation charge through P&L Higher tax payment in FY2016 a result of moving from quarterly to monthly tax payments and payment of final FY2015 quarterly tax instalment in FY2016

Dividends (cents per share) The availability of franking credits and a strong cash position provides for a 1.0 cent special dividend as part of the FY2016 final dividend Dividends (cents per share) 7.0 cents paid for FY2016 4.0 cent final dividend for FY2016 100% franked Includes 1.0 cent special dividend due to availability of franking credits Record date of 6 September 2016 Payment date of 30 September 2016

Outlook FY2017 PPL Solutions Revenue is anticipated to be in the range of $165m to $175m as a result of: 4% to 8% organic billing revenue growth $3.5m lower contribution from outsourcing/other stabilisation of TeleBilling’s contribution at a more typical run rate following delivery of a backlog in FY2016 the first contribution from PPL Solutions (refer below) Continue to target an EBITDA margin between 25% and 30% PPL Solutions Acquired effective 1 July 2016 Based in Pennsylvania, USA Provides billing, business process outsourcing (“BPO”), call centre and IT services to competitive energy suppliers and regulated utilities in the US 230 staff – with the majority located in the call centre in Hazelton, Pennsylvania Margins are well below those normally achieved by Hansen due to BPO, call centre and IT services provided