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HANSEN TECHNOLOGIES LIMITED Investor Presentation 2019
65073_rns_2019-04-03_ad465763-6d64-4dd5-bf0f-f9f69117c3d9.pdf
Investor Presentation
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HANSEN TECHNOLOGIES
INVESTOR PRESENTATION. APRIL 2019
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 $\mathcal{L}_{\rm{eff}}$ 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 quide to future performance $\mathcal{L}_{\mathcal{A}}$
- 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 ×
All dollar values are in Australian dollars (A\$) unless otherwise stated.
ABOUT HANSEN.
OUR COMPANY
- Founded in 1971 п
- Headquartered in Melbourne, $\mathcal{L}_{\mathcal{A}}$ Australia
- ASX listed (HSN) $\blacksquare$
TECHNOLOGY
- Proprietary billing and п customer management software, as well as data management systems
- IP all owned $\blacksquare$
INDUSTRY VERTICALS
- Utilities energy & water $\mathcal{L}_{\mathcal{A}}$
- Pay-TV I.
- Telcos $\mathcal{L}_{\mathcal{A}}$
TEAM
- 1000+ staff across 30 offices п globally
- Average length of tenure is ~10 $\overline{\phantom{a}}$ years
CUSTOMER BASE
- 500+ globally ×
- Largest customer ~7% of revenue
SHAREHOLDERS
- 18% Hansen family $\mathcal{L}_{\mathcal{A}}$
- 40% Institutional Fidelity & $\blacksquare$ Mawer substantial (>5%)
- $\mathcal{L}_{\mathcal{A}}$ 42% Retail
THE HANSEN JOURNEY.
... growing and diversifying by geography, industry and customer
REVENUE SPLIT.
REVENUE BY VERTICAL
REVENUE BY GEOGRAPHY
Based on 1H19 revenue
1000+ EMPLOYEES ACROSS 30 OFFICES GLOBALLY.
5 TECHNOLOGI
VIETNAM DEVELOPMENT CENTRE ... PART OF THE LONG TERM VISION.
WHY VIETNAM?
- A relatively untapped market with a large $\mathcal{L}_{\mathcal{A}}$ availability of highly skilled resources
- Time zone works well with our other development $\mathcal{L}_{\mathcal{A}}$ centres
- Part of a long term strategy to expand our $\mathcal{L}_{\mathcal{A}}$ development capacity - by maintaining our existing development centres while also establishing new centres in emerging/lower cost locations
RESOURCE BUILD
- Commenced in September 2017 with 5 people doing testing work
- Given the success to date it has now ramped up to around 80 people with a number performing development work
- Recruits are typically in their early to mid twenties and speak excellent English
- With our experience of having operated across many locations we have been able to fast track the speed to competency
- Having just moved into a new office which can accommodate 150 people, we plan to continue to build the resources
SOME OF OUR 500+ CLIENTS.
5 YEAR TRACK RECORD OF GROWTH
STRATEGIC EXPANSION VIA ACQUISITION
.... the major growth driver for Hansen
| HISTORY | 9 value-accretive acquisitions have been made over the past 10 years - including Enoro in July 2017 which is our largest to date at A\$95m enterprise value The learnings from them give us strong confidence in our ability to continue to deliver $\mathcal{L}_{\mathcal{A}}$ for shareholders on this growth strategy |
|---|---|
| WHY WE ACQUIRE? |
Acquisitions extend our footprint into new market segments, geographies or industry verticals by acquiring a fit-for-market product and an installed customer base This immediately gives us a demonstrable market position from which to expand |
| WHAT WE LOOK FOR |
We look for businesses that (1) are within or adjacent to our core competencies, (2) own their IP, and (3) have high levels of recurring revenue |
| HOW WE GET SYNERGIES |
We integrate the businesses into the Hansen way - adopting the same systems and processes We achieve synergies through leveraging our global experience - by sharing learnings and product development and through best practice for project delivery |
| OPPORTUNITIES | As it is a fragmented market we are continually reviewing acquisition opportunities Our universe of available targets is increasing as we expand the size and scope of Hansen |
HANSEN INVESTMENT PROFILE.
| DIVERSIFIED, LONG TERM CUSTOMER RELATIONSHIPS |
Our 500+ customers are diversified by industry, geography and currency - with our largest customer only circa 7% of total revenue Given the mission critical nature of our software, customer relationships often $\mathcal{L}_{\mathcal{A}}$ extend well beyond 10+ years |
|---|---|
| SIGNIFICANT GLOBAL PRESENCE |
We are a significant global player within our core business a. This enables us to leverage our global experience - by sharing learnings and product development and through best practice for project delivery |
| ANNUITY STYLE REVENUE STRUCTURES |
Approx. 63% of revenues are recurring - derived from periodic maintenance, support and licence fees The majority of non-recurring revenues are project fees from our 500+ customers for changes to our software to cater for change within their business |
| PREDICATABLE/STABLE CASH FLOWS |
A stable customer base providing annuity style revenue with targeted 25%- $\mathcal{L}{\mathcal{A}}$ 30% EBITDA margins delivers strong cash flows allowing us to pay down debt and provide for balance sheet capacity to fund acquisitions $\mathcal{L}{\mathcal{A}}$ We are currently in a net cash position |
| TRACK RECORD OF SUCCESSFUL ACQUISITIONS |
We have a strong track record over the past 10 years of making value accretive $\mathcal{L}_{\mathcal{A}}$ acquisitions having made 9 additions to the Group They extend our footprint into new markets and segments by acquiring a fit- a. for-market product and an installed customer base |
THANK YOU.
