2023
ANNUAL
REPORT
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
IMPORTANT NOTICE
This document, including the FY23 Review set out on
pages 10 to 16 (the FY23 Review), may contain
forward-looking statements, including plans and
objectives. Do not place undue reliance on them as
actual results may differ, and may do so materially.
They reflect Catapult’s views as at the time made, are
not guarantees of future performance and are subject
to uncertainties and risks, such as those described in
Catapult’s most recent financial report. Subject to
law, Catapult assumes no obligation to update,
review or revise any information in this document.
Catapult changed its financial year end from June 30
to March 31, with a nine-month transitionary FY21
consisting of an interim period ended December 31,
2020 and a final period ended March 31, 2021.
Catapult also changed its presentation currency from
A$ to US$, which commenced with reporting in
US$ for the six-month period ended December 31,
2020. Catapult also acquired SBG on July 1, 2021. The
FY23 Review sets out pro forma information solely for
the purpose of illustrating the effects of the
acquisitions (including SBG) and these changes on
certain historical financial results.
Financial information in the FY23 Review denoted as
“Pro forma including acquisitions” is pro forma and
does not form part of Catapult’s FY23 financial
results. The “Pro forma including acquisitions”
financial information is, as applicable, in respect of
either a 6-month period ended September 30, or a
12-month period ended March 31, on the basis that
the Company acquired all relevant acquired entities
on April 1, 2018. All pro forma financial information
has been compiled from management accounts.
Because of its hypothetical nature, the pro forma
information may not give a true picture of a relevant
comparison. Subject to law, Catapult assumes no
obligation to update, review or revise the pro forma
information.
The “Pro forma including acquisitions” financial
information has not been independently audited or
reviewed. Financial information denoted as, or in
columns headed, “Mar 21”, “Mar 22”, “Mar 23”, “Sep
20”, “Sep 21”, “Sep 22” is, for each respective month
and unless otherwise specified, point in time
information which is calculated as at the last day of
that month. Such point in time financial information,
except for the “Mar 21”, “Mar 22”, “Sep 21”, “Sep 22”,
and “Mar 23” balance sheets, has not been
independently audited or reviewed.
ACV is calculated using an average exchange rate to
US$ over a 1-month period ending on the effective
calculation date. ACV calculated on a “constant
currency” or “(CC)” basis is calculated using an
average exchange rate to US$ over a 1-month period
ending on March 31, 2022. A reference to ACV growth
and ACV (YoY) growth (including on a constant
currency basis) for a relevant year is, unless otherwise
specified, a reference to, respectively: (i) ACV
calculated as at September 30 or March 31 of that
year, or any other specified date; and (ii) the quotient
of (x) the ACV calculated as at the relevant date for
that year; divided by (y) the ACV calculated as at the
date which is 12-months earlier than the date in (x),
expressed as a percentage.
While Catapult’s results are reported under IFRS, this
document also includes non-IFRS information such as
the pro forma information referred to above, EBITDA,
underlying EBITDA, Gross Margin, Contribution
Margin, free cash flow, Annualized Contract Value
(ACV), ACV Churn, Lifetime Duration (LTD), and
Future Revenue Under Contract (FRUC). These
measures are provided to assist in understanding
Catapult’s financial performance. They have not been
independently audited or reviewed, and should not be
considered an indication of, or an alternative to, IFRS
measures. Financial information attributed to a
segment in the FY23 Full Year Financial Report may
be presented in a different classification, or split
between one or more classifications, in the FY23
Review.
The information in this document is for general
information purposes only, and does not purport to be
complete. It should be read in conjunction with
Catapult’s other market announcements. Readers
should make their own assessment and take
professional independent advice prior to taking any
action based on the information.
Due to rounding, numbers presented throughout this
document may not add up precisely to the totals
provided and percentages may not precisely reflect
the presented figures.
This document is dated June 30, 2023.
UNLEASH POTENTIAL
2
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONTENTS
➔ F Y 23 K E Y F I N A N C I A L H I G H L I G H T S
➔ A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N
4
➔ F Y 2 3 K E Y B U S I N E S S H I G H L I G H T S
3 4
➔ R E M U N E R A T I O N R E P O R T ( A U D I T E D )
5
➔ C H A I R M A N ’ S L E T T E R
3 5
➔ C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
6
➔ C E O ’ S L E T T E R
4 8
➔ I N D E P E N D E N T A U D I T O R ’ S R E P O R T T O T H E
M E M B E R S O F C A T A P U L T G R O U P
I N T E R N A T I O N A L L T D
8
➔ F Y 2 3 R E V I E W O F O P E R A T I O N S
1 0 6
➔ S H A R E H O L D E R I N F O R M A T I O N
1 0
➔ D I R E C T O R S ’ R E P O R T
1 1 2
➔ C O R P O R A T E D I R E C T O R Y
1 7
1 1 5
In this document, the terms ‘Catapult’, the ‘Company’, the ‘Group’, ‘our business’, ‘organisation’, ‘we’, ‘us’, ‘our’ and
‘ourselves’ refer to Catapult Group International Ltd and, except where the context otherwise requires, its
subsidiaries. All references to $ or dollars in this document are to US dollars unless otherwise stated.
UNLEASH POTENTIAL
3
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
FY23 KEY FINANCIAL HIGHLIGHTS
ON PLAN TO BE FCF+ IN FY24
o H2 US$2.2M EBITDA on
US$42.8M Revenue
o H2 Gross margin rebounded to
81% from 71%
o Variable costs lowered by
US$8.3M* in H2
HIGH SAAS GROWTH
o SaaS Revenue +21.8% YoY (CC)
o Record H2 sales; FY23 ACV
+20.2% YoY (CC)
o P&H (Wearables) ACV +28% YoY
(CC)
o T&C (Video) accelerated in new
o Fixed costs lowered by US$3.6M*
markets
in H2
o Operating cashflow +40% YoY to
US$3.7M
o
Incredibly low ACV Churn of 3.8%
*Excludes Non-Cash components
FORWARD-LOOKING STATEMENTS: This page contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual results
may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in Catapult’s most recent financial report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this
document.
IMPORTANT NOTES: ACV, ACV growth and ACV churn financial information in this slide has not been independently audited or reviewed, does not form part of Catapult’s
FY23 financial results, and has been calculated as at March 31, 2023. Any financial information denoted as “constant currency” or “(CC)” is translated to US$ using a 1-
month average exchange rate ending on March 31, 2022. See page 2 for information regarding non-IFRS measures and pro forma financial information in this document,
along with their purpose, method of preparation and whether they have been independently audited or reviewed. See page 2 for an explanation of ACV financial
information denoted as being on a “constant currency” or “CC” basis. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
UNLEASH POTENTIAL
4
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
FY23 KEY BUSINESS HIGHLIGHTS
UNIQUE CUSTOMER WINS
o Expanded NRL and NRLW
agreement
o XFL League Wide Deal
o McLaren F1
o FC St. Pauli
o Princeton University
NEW PRODUCT RELEASES
o Vector T7 for indoor sports
o Smart American Football with
wireless charging
o Wearable/Video integration for
Basketball and Ice Hockey
o New live features for athlete
monitoring
o New Vest with integrated HR for
female athletes
UNLEASH POTENTIAL
5
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CHAIRMAN’S LETTER
Dear Shareholders,
On behalf of your Board of Directors, it is our pleasure
to share with you the Catapult Group International
Ltd Annual Report for the financial year ended March
31, 2023 (FY23).
FY23 was another impressive year for Catapult. The
Company delivered an excellent result, particularly in
the second half of the financial year. Our consistent
history of high ACV growth, strong gross margins and
recent cost reductions indicate that we are on the
path to becoming a profitable company.
The Board was delighted with our continued progress
in the following 3 key areas.
First, we are heading towards generating positive
Free Cash Flow in FY24. This confidence was built
because we were able to significantly reduce costs
while maintaining the high growth rate of our SaaS
business, as evidenced by its 22% strong growth in
SaaS revenue.
Despite the reduction of costs, we recorded a
significant increase in H2 sales and Annual Contract
Values (ACV) while maintaining low churn,
demonstrating world-class customer retention and
loyalty.
Second, due to our fixed cost base (G&A and R&D)
now being established to support the business at
scale, Catapult has entered a new phase of profitable
growth. As we exit our growth investment phase, we
anticipate that every additional $1 of revenue should
generate a profit margin of approximately 30% or
more. Positively, early signs of this new phase of
profitable growth were evidenced in the second half,
with US$15.4 million improvement in EBITDA.
Lastly, the Company's SaaS growth strategy of
‘landing with wearables’ and ‘expanding with video’ is
working as anticipated.
In FY23, our Performance & Health Vertical (P&H)
ACV increased by 28%. Our legacy video solution ACV
grew by 7% during the financial year, while our new
video solution grew by 27.5%.
D R . A D I R
S H I F F M A N
E X E C U T I V E
C H A I R M A N
We are thrilled to see how far our video platform has
progressed in preparation for the upcoming sales
seasons in the US and Europe, with promising
products available for football, ice hockey, soccer,
basketball, rugby, and motorsports.
In December 2022, the Company expanded its debt
facility with its existing debt provider, Western
Alliance Bank, for an upsized US$20M revolving
facility. The facility increased the Company’s cash
reserves on improved commercial terms from its
previous facility. The facility is consistent with
Catapult’s previous remarks that it is fully funded to
reach Free Cash Flow positivity in FY24 and does not
anticipate any additional equity funding.
Catapult’s major FY23 financial and operating
highlights included:
● H2 EBITDA of US$2.2M, a US$15.4M improvement
from H1
● H2 Gross margin rebounded to 81% from 71% in H1
● Costs to operate the business dropped US$11.9M
in H2 from H1
● Operating cashflow +40% YoY to US$3.7M
● SaaS Revenue +21.8% YoY (CC), contributing to a
total revenue of US$84.4M
● Record H2 sales; FY23 ACV +20.2% YoY to
US$76.8M (CC)
● ACV Churn at record low rates of 3.8%
● Performance & Health Vertical (P&H) ACV grew
28% YoY (CC)
L o o k i n g a h e a d t o F Y 2 4 , C a t a p u l t a i m s t o d e l i v e r
o n i t s s t r a t e g i c p r i o r i t i e s w i t h a f o c u s o n c a s h
g e n e r a t i o n .
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: The pull quote on this page contains forward-looking statements including plans and objectives. Do not place undue reliance on them
as actual results may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to
uncertainties and risks, such as those described in Catapult’s most recent financial report. Subject to law, Catapult assumes no obligation to update, review or revise any
information in this section. See the important notice on page 2.
IMPORTANT NOTES: See page 2 for information regarding non-IFRS measures and pro forma financial information in this FY23 Review, along with their purpose, method
of preparation and whether they have been independently audited or reviewed. See page 2 for an explanation of ACV financial information denoted as being on a “constant
currency” or “CC” basis. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
6
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CHAIRMAN’S LETTER
OUTLOOK
Looking ahead to FY24, Catapult aims to deliver on its
strategic priorities with a focus on cash generation.
The Company expects:
● ACV growth to remain strong with low churn
● continued improvement in cost margins towards
its long-term targets
● to be Free Cash Flow positive in FY24 without the
need to raise equity capital
As always, I am grateful for the continued
commitment and guidance of the Board, and the
Executive team. And a very special thanks to our
employees around the world - your dedication and
teamwork contributed greatly to the Company's
progress.
Finally, the Board wishes to express its appreciation
to the athletes, teams, and shareholders for their
endless support in the past year. Thank you everyone
for your passion, hardwork and loyalty, none of this
would be possible without you.
Regards
Dr Adir Shiffman
Executive Chairman
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This section contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual
results may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties
and risks, such as those described in Catapult’s most recent financial report. Subject to law, Catapult assumes no obligation to update, review or revise any information in
this section. See the important notice on page 2.
IMPORTANT NOTES: See page 2 for information regarding non-IFRS measures and pro forma financial information in this document, along with their purpose, method of
preparation and whether they have been independently audited or reviewed. See page 2 for an explanation of ACV financial information denoted as being on a “constant
currency” or “CC” basis. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
7
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CEO’S LETTER
Dear Shareholders,
Catapult has positioned itself to deliver on our Rule of
40 focus. This financial year, the Company delivered
another excellent result, proving once again that
Catapult is the global leader in the sports
performance technology industry.
Catapult achieved great results during the second
half of FY23. We returned the business to be EBITDA
positive, an improvement of more than US$15M. We
were able to significantly reduce expenses by
US$11.9M and maintain growth, as ACV growth in our
largest vertical, Performance & Health (P&H)
expanded to 28% during the year. Our SaaS revenue
increased by 22% contributing to a total revenue of
US$84.4M. We also maintained a low churn rate of
3.8%, showing how valuable our solutions are to our
customers.
I am confident that our cost margins will continue to
improve as a result of our revised investment plans,
and the Company will return to Positive Free Cash
flow in FY24.
As I mentioned at the FY23 result, we have reached an
inflection point. Catapult is in a new phase of
profitable growth and by exiting our growth
investment phase, we anticipate that every additional
$1 of revenue should generate a profit margin of
approximately 30% or more. This is because our fixed
costs base has been established to support the
business at scale, with additional leverage available as
variable costs improve towards long-term margin
targets.
The Board and Management have committed to
focusing the Company’s core activities on high-
growth SaaS revenue streams. We are showing
accelerated results for our SaaS growth strategy of
landing with wearables and expanding with video
solutions. Annualized Contract Values for our new
video solutions are showing high growth rates similar
to our wearables. We are further excited to see the
progress made in our video platform for the coming
sales seasons in the US and Europe. We added several
features that will positively impact our customers’
workflows by saving them time while giving them new
insights. The early sales success in the EMEA and
APAC regions, where we don’t have a well-established
subscription base for video solutions, is very
encouraging for FY24.
W I L L L O P E S
C H I E F
E X E C U T I V E
O F F I C E R
Catapult's customer team base increased to more
than 3,800 in FY23, up around 400 teams in the year,
following the introduction of new solutions within the
financial year.
Product launches in FY23 included:
● A new wearable device, Vector T7, for indoor
sports
● A Smart American Football with wireless charging
● Wearable/Video integration for Basketball and Ice
Hockey
● New live features for athlete monitoring
● New Vest with integrated HR for female athletes
Despite growth in our customer base, our average
customer lifetime duration lengthened to over 6 years.
Cross-selling accelerated the number of customers
buying products from 2 or more verticals in Catapult’s
platform and now 9.5% of the Company’s customers
are multi-vertical customers.
The Company had notable new deals in FY23,
including expanded League Wide Deals (LWD) with
the NRL and NRLW, and the XFL, along with new
signings of iconic logos such as McLaren F1,
FC St. Pauli, and Princeton University. These exciting
new deals reflect the depth of organic growth
opportunities as well as the resilience of sport in a
recessionary period.
Catapult's focus remains integrating video and
wearable solutions, and we’re proud to have been the
first to bring that technology to teams around the
world.
During the year, the Company announced an
executive transition. Our former CFO, Hayden
Stockdale, stepped down from the role. He was a key
member of the executive leadership team since 2020
and was instrumental in transforming the business to
higher SaaS growth and maturity. Again, the Board
and I thank Hayden for his outstanding contributions
to the Company and wish him all the best in his future
endeavours.
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This letter (including the pull quote) contains forward-looking statements including plans and objectives. Do not place undue reliance
on them as actual results may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are
subject to uncertainties and risks, such as those described in Catapult’s most recent financial report. Subject to law, Catapult assumes no obligation to update, review or
revise any information in this section. See the important notice on page 2.
IMPORTANT NOTES: See page 2 for information regarding non-IFRS measures and pro forma financial information in this document, along with their purpose, method of
preparation and whether they have been independently audited or reviewed. See page 2 for an explanation of ACV financial information denoted as being on a “constant
currency” or “CC” basis. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
8
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CEO’S LETTER
O u r p r i m a r y g o a l i s t o d e l i v e r o n o u r s t r a t e g i c
p r i o r i t i e s w i t h a f o c u s o n c a s h g e n e r a t i o n w h i l e
p r e s e r v i n g g r o w t h o p p o r t u n i t i e s i n t h e
m e d i u m / l o n g t e r m .
The Company welcomed the appointment of our new
CFO, Bob Cruickshank, in April 2023. Bob has more
than 25 years’ experience at public and private
companies, high-growth start-ups, and mature-stage
U.S.-based technology companies. Prior to Catapult,
he served in executive roles at Astadia, ezCater,
Amazon Robotics (formerly Kiva Systems), and Aspen
Technology, after a successful public accounting
career at Arthur Andersen. He is currently based in
Boston having been CFO for Astadia Inc. since 2021.
Bob’s track record of leadership and operational
execution ideally positions him to further advance our
strategy at Catapult. His previous successes as a CFO
means he will be an invaluable addition to Catapult’s
leadership team.
Our primary goal is to deliver on our strategic
priorities with a focus on cash generation while
preserving growth opportunities in the medium/long
term. I am excited to see how the above
achievements, combined with the Company’s strong
balance sheet, will enable Catapult to continue to
benefit from the fast-growing sports technology
market.
Finally, thank you to the Board for their ongoing
support and advice. My overwhelming gratitude to all
our customers, shareholders, and employees. I look
forward to the year ahead with optimism.
Regards,
Will Lopes
Chief Executive Officer
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This letter (including the pull quote) contains forward-looking statements including plans and objectives. Do not place undue reliance
on them as actual results may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are
subject to uncertainties and risks, such as those described in Catapult’s most recent financial report. Subject to law, Catapult assumes no obligation to update, review or
revise any information in this section. See the important notice on page 2.
IMPORTANT NOTES: See page 2 for information regarding non-IFRS measures and pro forma financial information in this document, along with their purpose, method of
preparation and whether they have been independently audited or reviewed. See page 2 for an explanation of ACV financial information denoted as being on a “constant
currency” or “CC” basis. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
9
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
FY23
REVIEW OF OPERATIONS
UNLEASH POTENTIAL
UNLEASH POTENTIAL
Important Note: See page 2 for information regarding non-IFRS measures and pro forma financial information in this FY23 Review, along with their purpose, method of
preparation and whether they have been independently audited or reviewed. See page 2 for an explanation of ACV financial information denoted as being on a “constant
currency” or “CC” basis. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
10
10
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
OUR VISION
UNLEASH THE POTENTIAL OF EVERY TEAM AND ATHLETE ON EARTH
Catapult’s vision is to unleash the potential of every league, athlete, and team on Earth
by creating a platform of solutions that teams and athletes worldwide can use to
improve and reach their maximum performance.
COMPANY STRATEGY
DELIVER THE MOST COMPREHENSIVE AND INSIGHTFUL SET OF
PERFORMANCE METRICS FOR SPORTS
Catapult’s focus and strategy is further illustrated below.
CONTEXTUALIZE DATA
APPLY DATA SCIENCE
FOUNDATION FOR SCALE
Contextualize data within
coaching solutions (where
decisions-makers spend
time)
Apply data science to
create unique
differentiating insights to
drive market expansion
Provide the foundation to
take these insights into the
Prosumer segment
UNLEASH POTENTIAL
11
FORWARD-LOOKING STATEMENTS: This page contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual results
may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in this Annual Report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this document.
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
WE ARE THE STANDARD FOR PROFESSIONAL SPORTS
The successful execution of this strategy sees Catapult continuing to be the global
performance technology leader in elite sports. The Company's global scale and rapidly
expanding customer base became further evident during FY23. Catapult now works
with more than 3,800 elite teams, across over 40 different sports in more than 100
countries.
40+
SPORTS
100+
COUNTRIES
3,800+
ELITE TEAMS GLOBALLY
The Company had notable new deals in FY23, including an expanded League Wide Deal
(LWD) with the NRL and NRLW, a LWD agreement with the XFL, and many new
signings including iconic logos such as McLaren F1, FC St. Pauli, and Princeton
University.
FY23 was another successful year for Catapult. Catapult continued to deliver strong
progress against key SaaS metrics, demonstrating the leverage that the SaaS model
has created. High ACV (Annual Contract Value) growth, strong gross margins, and
recent cost reductions indicate future revenue and profit growth.
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This page contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual results
may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in this Annual Report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this document.
IMPORTANT NOTES: See page 2 for further regarding non-IFRS measures and pro forma financial information in this FY23 Review, along with their purpose, method of
preparation and whether they have been independently audited or reviewed. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
12
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
SAAS IS KEY TO OUR GROWTH
Catapult strongly believes that SaaS is the key to revenue growth and its main focus is
to accelerate the business by continuously surrounding its customers with value-adding
SaaS products.
VERTICAL
FY23 ACV
FY23
GROWTH
(CC)
GROSS
MARGIN*
DYNAMICS
S
a
a
S
S
a
a
S
-
n
o
N
P&H (Wearables)
$47.0
28%
>70%
T&C (Video)
$23.9
11%
>90%
Media & Others
$12.8**
0%
~50%
TOTAL RECURRING REVENUE
US$83.7M
*
**
Indicative Gross Margin
Media revenue is recurring but is not classified as ACV
Customer relationships begin here (Land strategy)
High-growth (+30% CAGR last 3 years)
Massive green�ield opportunities (Pro & Prosumer)
Cross sell focus capitalizing on P&H (Expand strategy)
Attractive economics (avg. ACV ~2X P&H)
Catapult’s Pro teams' penetration <3%
Highly recurring revenue
Pro�itable verticals built on top of SaaS technology
Long-term potential (Scouting, NCAA NIL, NFT, Fan
Engagement)
RECORD SAAS SALES DURING THE SECOND HALF
ACV was up 20.2% to US$76.8M. This follows a record second half of US$6.8M in ACV
growth. The Performance & Health (P&H), one of the two main verticals and includes
the Company’s wearables products, delivered high growth of 28% to US$49.9M of
ACV. While the Tactical & Coaching (T&C) vertical, which includes the Company’s video
solutions, had global ACV growth of 11%.
TOTAL ACV (US$M CC)
80.0
75.0
70.0
65.0
60.0
55.0
50.0
45.0
6.8
6.1
6.3
76.8
5.7
63.9
51.9
Mar-21
1H22
2H22
Mar-22
1H23
2H23
Mar-23
ACV is on a constant currency basis and pro forma including acquisitions.
FORWARD-LOOKING STATEMENTS: The table above contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual
results may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties
and risks, such as those described in this Annual Report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this document.
IMPORTANT NOTES: ACV denoted as “Mar 21”, “Mar 22”, “Mar 23” in the chart above has been calculated as at March 31, and the differential components in that chart
have been calculated using the relevant ACV as at September 30 of the relevant year. ACV financial information related to “Mar 21” in the chart above is pro forma and
calculated on the basis that the Company acquired all relevant acquired entities on April 1, 2018. All ACV and ACV growth financial information on this page has not been
independently audited or reviewed, does not form part of Catapult’s FY23 financial results, and has been calculated as at March 31, 2023. Any financial information denoted
as “constant currency” or “(CC)” is translated to US$ using a 1-month average exchange rate ending on March 31, 2022. See page 2 for further information regarding (i)
constant currency; and (ii) non-IFRS measures and pro forma financial information, their purpose, method of preparation and whether they have been independently
audited or reviewed. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
UNLEASH POTENTIAL
13
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
SAAS REVENUE CONTINUES TO OUTPACE OVERALL REVENUE GROWTH
Catapult’s SaaS revenue increased 21.8% to US$70.5M. Subscription revenue,
comprising SaaS revenue and recurring media revenue, is now 92% of Catapult’s total
revenue, highlighting the high quality of Catapult’s transformed business model.
Total revenue in FY23 was US$84.4M, up 10% or 14%. Revenue growth was attributed
to SaaS revenue growth, capital revenue down 20% (as the Company fully transitioned
to SaaS), and Media & Other revenue staying relatively flat.
Revenue by Type YoY (US$M)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
-
67.3
13.9
8.6
44.8
FY21
77.0
8.4
10.7
57.9
FY22
SaaS
Media
Capital
87.7
6.7
10.5
70.5
FY23
Revenue for FY23 is on a constant currency basis.
T&C SAAS SALES ACCELEARTED RAPIDLY IN NEW MARKETS
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
-
T&C YoY ACV Growth (CC)
31.3%
32.1%
9.5%
7.1%
14.1%
5.7%
Americas
EMEA
APAC
% Growth to Mar 22
% Growth to Mar 23
ACV is on a constant currency basis and
pro forma including acquisitions.
Catapult’s new video solution, Tactics &
Coaching (T&C) has accelerated rapidly
in new markets as early sales success
was seen in the EMEA and APAC regions
and is anticipating progress for the
coming sales season in the US and
Europe.
Features were added to positively
impact customers’ workflows, saving
them time while giving them new
insights.
IMPORTANT NOTES: In the first chart above, the revenue (i) for FY23 is “constant currency” or “(CC)” (and growth calculations relating to the same) and is revenue
recognized in each month of that period translated to US$ using a 1-month average exchange rate ending on the date which is 12-months prior to the end of that month;
and (ii) for FY21 is pro forma solely to enable a comparison between the 12-month FY22 and FY23 and the combined audited financial statements for the nine-month period
ended March 31, 2021 and the unaudited management accounts for the three-month period ending June 30, 2020.
In the second chart above, ACV denoted as “Mar 21”, “Mar 22”, “Mar 23” (and growth calculations relating to the same) (i) has been calculated as at March 31 of the
relevant year and using the methodology further described on page 2; and (ii) is on a constant currency basis and translated to US$ using a 1-month average exchange rate
ending on March 31, 2022; Such ACV financial information related to “Mar 21” is pro forma and calculated on the basis that the Company acquired all relevant acquired
entities on April 1, 2018.
The revenue in the first chart above, the ACV in the second chart above, and growth calculations relating to the same, have not been independently audited or reviewed,
and does not form part of Catapult’s FY23 financial results. See page 2 for further information regarding (i) constant currency; and (ii) non-IFRS measures and pro forma
financial information, their purpose, method of preparation and whether they have been independently audited or reviewed. Commentary is for the 12-month period ended
March 31, 2023 unless otherwise specified.
UNLEASH POTENTIAL
14
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
STRONG GROWTH IN CROSS-SELLING AND LOW CHURN
Sales growth for the products generated from the 2021 acquisition of SBG was up to
27%. Multi-vertical customers grew 10%, indicating success with cross sell. Consistent
low ACV Churn rate of 3.8% proves great value of the Company’s products and
services.
Average customer lifetime duration lengthened to over 6 years while Average ACV of
Pro Customers increased by 7%.
Multi-Vertical Customers
% of Customer With 2+ Verticals
450
400
350
300
250
200
150
100
50
-
68
253
366
38
214
9.5%
7.4%
6.6%
0.1
0.09
0.08
0.07
0.06
0.05
Mar 21
Mar 22
Mar 23
Mar 21
Mar 22
Mar 23
Run-Off Products
Normalised Multi %
Run-off Products are products no longer supported by Catapult that are at end-of-life (includes AMS and Vision solutions).
ACCELERATED ROLL-OUT OF NEW PRODUCTS
Catapult invested US$16.2M in R&D during FY23, representing 19% of revenue. This
investment contributed to an accelerating roll-out of new products and solution
enhancements which are expected to deliver future revenue growth.
Product launches in FY23 included:
• A new wearable device, Vector T7, for indoor sports
• A Smart American Football with wireless charging
• Wearable/Video integration for Basketball and Ice Hockey
• New live features for athlete monitoring
• New Vest with integrated HR for female athletes
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This page contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual results
may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in this Annual Report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this document.
IMPORTANT NOTES: The information in the charts above has not been independently audited or reviewed, does not form part of Catapult’s FY23 financial results, and has
been calculated as at March 31, 2023. See page 2 for further information regarding non-IFRS measures and pro forma financial information, their purpose, method of
preparation and whether they have been independently audited or reviewed. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
15
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
IMPROVED FINANCIAL POSITION AND PATH TO GENERATING CASH
In September 2022, Catapult announced a reprioritization of its accelerated
investment program.
In H2 FY23, variable costs improved by US$8.3M while fixed costs improved by
US$3.6M. These Performance & Health Vertical (P&H) savings, along with a record
half-year of sales, resulted in dramatic margin improvements. Contribution profit
improved by US$9.5M and contributed to a positive EBITDA result in H2 of US$2.2M.
FY23 EBITDA loss of US$11.0M was a 22.8% improvement on FY22.
In December 2022, the Company expanded its debt facility with its existing debt
provider, Western Alliance Bank, for an upsized US$20M (A$31M) revolving facility. The
facility increased the Company’s cash reserves on improved commercial terms from its
previous facility. The facility is consistent with Catapult’s previous remarks that it is
fully funded to reach Free Cash Flow positivity in FY24 and does not anticipate any
additional equity funding.
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This page contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual results
may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in this Annual Report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this document.
IMPORTANT NOTES: See page 2 for further information regarding non-IFRS measures and pro forma financial information, their purpose, method of preparation and
whether they have been independently audited or reviewed. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
16
CATAPULT GROUP INTERNATIONAL LTD
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
2023 ANNUAL REPORT
REVIEW OF OPERATIONS
REPORT OF THE DIRECTORS
AND THE FINANCIAL REPORT
UNLEASH POTENTIAL
UNLEASH POTENTIAL
FORWARD-LOOKING STATEMENTS: This page contains forward-looking statements including plans and objectives. Do not place undue reliance on them as actual results
may differ, and may do so materially. They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in this Annual Report. Subject to law, Catapult assumes no obligation to update, review or revise any information in this document.
IMPORTANT NOTES: See page 2 for further information regarding non-IFRS measures and pro forma financial information, their purpose, method of preparation and
whether they have been independently audited or reviewed. Commentary is for the 12-month period ended March 31, 2023 unless otherwise specified.
17
17
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONTENTS
➔ O P E R A T I N G A N D F I N A N C I A L R E V I E W
➔ C O N S O L I D A T E D S T A T E M E N T S O F
C H A N G E S I N E Q U I T Y
1 9
➔ D I R E C T O R S ’ R E P O R T
5 1
➔ C O N S O L I D A T E D S T A T E M E N T O F
C A S H F L O W S
1 7
➔ A U D I T O R ’ S I N D E P E N D E N C E D E C L A R A T I O N
5 2
➔ N O T E S T O T H E
F I N A N C I A L S T A T E M E N T S
3 4
➔ R E M U N E R A T I O N R E P O R T ( A U D I T E D )
5 3
➔ D I R E C T O R S ’ D E C L A R A T I O N
3 5
➔ C O N S O L I D A T E D S T A T E M E N T O F P R O F I T
A N D L O S S A N D O T H E R C O M P R E H E N S I V E
I N C O M E
1 0 5
➔ I N D E P E N D E N T A U D I T O R ’ S R E P O R T T O T H E
M E M B E R S O F C A T A P U L T G R O U P
I N T E R N A T I O N A L L T D
4 8
➔ C O N S O L I D A T E D S T A T E M E N T O F
F I N A N C I A L P O S I T I O N
1 0 6
C O R P O R A T E D I R E C T O R Y
5 0
1 1 5
In this Financial report, the terms ‘Catapult’, the ‘Company’, the ‘Group’, ‘our business’, ‘organization’, ‘we’, ‘us’, ‘our’
and ‘ourselves’ refer to Catapult Group International Ltd and, except where the context otherwise requires, its
subsidiaries. All references to $ or dollars in this Financial report are to US dollars unless otherwise stated.
UNLEASH POTENTIAL
18
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
This operating and financial review (the ‘OFR’) is designed to assist shareholders to make an informed assessment
of Catapult’s operations, financial position, business strategies, and prospects for future financial years. The OFR
forms part of the Directors’ Report and supplements, complements, and should be read together with, the financial
report sections of this document that commence on page 48.
While Catapult’s results are reported under IFRS, the OFR also includes non-IFRS information such as EBITDA,
underlying EBITDA, Gross Margin, Contribution Margin, free cash flow, Annualized Contract Value (ACV), ACV
Churn, and Lifetime Duration (LTD). See, in particular, the Key Performance Metrics section below.
The Board considers that the included non-IFRS metrics are necessary for shareholders to understand Catapult’s
financial performance given that it is a Software-as-a-Service ('SaaS') business. The non-IFRS information has not
been independently audited or reviewed, and should not be considered an indication of, or an alternative to, IFRS
measures.
KEY PERFORMANCE METRICS
The Company measures its performance through the achievement of a number of principal SaaS metrics, and is
pleased to report the following movements in all of these metrics:
METRIC
As at Mar 31, 2023
As at Mar 31, 2022
Change %
US$’000
US$’000
ACV(i)
ACV churn(ii)
Lifetime duration (LTD)(iii)
Multi-vertical customers(iv)
73.4
3.8%
6.0
366
63.9
3.4%
5.8
321
14.9%
11.8%
3.4%
14.0%
The numbers in the table above are non-IFRS and unaudited and have been provided for information purposes only. The non-IFRS metrics in the table
above are defined as follows:
(i)
(ii)
ACV refers to Annualized Contract Value, being the annualized value of contracted subscription revenue in effect at a particular date.
ACV churn is the reduction in ACV from the loss of customers over a period, expressed as an annualized percentage of opening ACV.
(iii)
LTD is the weighted average length of time a customer has been continuously with the Company, weighted by customers’ current ACVs.
(iv) Multi-vertical customers are customers that use a product from more than one of the Group’s verticals.
UNLEASH POTENTIAL
19
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
SUMMARY OF FINANCIAL RESULTS
US$’000
Revenue
Cost of goods sold
Gross Profit
Gross Margin
Variable Costs
Employee
Other
Contribution Profit
Contribution Margin
Other Income
Fixed Costs
Fixed Staff Costs
Capitalized Development
SBG Share-Based Purchase Consideration
Other Fixed Costs
EBITDA
EBITDA Margin %
Depreciation & Amortization
Earnings Before Interest and Tax (EBIT)
Net Profit after Tax (NPAT)
UNDERLYING EBITDA
UNDERLYING EBITDA Margin %
FY23
84,360
20,534
63,826
75.7%
26,210
20,925
5,285
37,616
44.6%
1,186
49,816
43,710
(16,215)
6,915
15,407
(11,015)
-13.1%
20,596
(31,611)
(31,484)
(3,159)
-3.7%
FY22
77,013
19,607
57,406
74.5%
23,701
18,603
5,098
33,705
43.8%
1,761
49,735
41,212
(13,316)
8,269
13,570
(14,270)
-18.5%
18,581
(32,850)
(32,187)
(5,835)
-7.6%
Change
% Change
7,347
927
6,420
1.1%
2,509
2,322
187
3,911
0.8%
(575)
81
2,498
(2,899)
(1,355)
1,838
3,255
5.5%
2,016
1,239
703
2,676
3.8%
9.5%
4.7%
11.2%
1.5%
10.6%
12.5%
3.7%
11.6%
1.9%
-32.7%
0.2%
6.1%
-21.8%
-16.4%
13.5%
22.8%
29.5%
10.8%
3.8%
2.2%
45.9%
50.6%
FINANCIAL AND OPERATING PERFORMANCE
➔ Subscription revenue for FY23 was 92.0% (FY22: 89.1%) of total revenue, as the Company continues to grow
from one-time capital deals to higher quality and higher margin subscription deals.
➔
➔
➔
➔
➔
➔
The Company is well positioned with $16,225k of cash at bank as at March 31, 2023 (FY22: $26,108k).
The Company made the decision to reduce its accelerated growth investment in a number of areas, including
both employee expenses and general overhead. Specifically, Catapult reprioritized its investment to
concentrate in its key product verticals which continue to be the core growth engine.
The Company expanded its league-wide deal with the NRL, for its performance technology to be used by all 16
NRL and all 6 NRLW teams as well as Australia's national teams and match officials.
The Company extended its GameTracker video technology into NBA basketball, enabling every performance
dataset, including wearables, to be connected to multi-angle video, with seamless collaboration across
departments from anywhere.
The Company further extended its GameTracker video suite to all basketball teams, enabling them to automate
complex tasks that previously required manual post-game analysis, saving them critical time.
The Company launched new live athlete monitoring features within its Vector product, to unlock real-time
insights that allow for faster decisions and easier workflows for teams and coaches.
UNLEASH POTENTIAL
20
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
➔
➔
➔
The Company launched its GameTracker technology into the sport of Ice Hockey, where its global ACV has
grown 7x in the last five years, and its video solutions are trusted by teams around the world, including a league-
wide agreement with the NHL.
The Company announced its plans for an accelerated return to positive free cash flow1, which is now expected
to be achieved in FY24. This included a decision to reduce the previously announced Accelerated Growth
investment plan in a number of areas, including both employee expenses and general overhead. As part of this,
the Company is reprioritizing its investment to concentrate on its key high-growth and strong-margin product
verticals. The reduction in costs will mainly impact more speculative areas.
The Group finalized an upsized $20,000k debt facility on improved commercial terms, with its existing financier
the US-based Western Alliance Bank, with a maturity date of December 27, 2024. As at March 31, 2023, $15,747k
has been drawn down on the facility.
➔ An additional 4.55% stake in Science for Sport Limited (SfS), the subscription online sport learning platform,
was acquired as a result of a put option exercise for a purchase sum of US$28k. Put and call options to acquire
the remaining 20% of the issued share capital in SfS, which had an original term date of November 9, 2022,
have been extended to December 31, 2025. Catapult previously acquired 75.45% of Science for Sport on
November 9, 2020.
➔
➔
In partnership with Energous Corporation (NASDAQ: WATT), a leading developer of RF-based charging for
intelligent wireless power networks, the Company built the first smart American football for sports teams with
an embedded tracker that can charge wirelessly, providing the data precision that Catapult customers have
come to expect from its wearables & video solutions.
The Company continued its commercial growth in the European market growth projections from the close of
FY22 with the addition of many new customers, including AZ Alkmaar (Eredivisie football club), FC St. Pauli (2.
Bundesliga football club), and Zebre Parma (Italian Rugby Union team).
BUSINESS STRATEGIES AND PROSPECTS
Catapult’s vision is to create the platform of solutions for teams and athletes, in order to improve the performance
of athletes and teams globally.
Within this platform Catapult has identified five “verticals” of technology solutions across two customer levels.
PLATFORM
PERFORMANCE &
HEALTH
TACTICS &
COACHING
MEDIA & OTHER
PERFORMANCE &
HEALTH
TACTICS &
COACHING
MANAGEMENT
PROFESSIONAL
SERVICES
MEDIA &
ENGAGEMENT
1 Free cash flow is defined as net cash from operations minus net cash used in investing activities. This is a non-IFRS number and is unaudited.
UNLEASH POTENTIAL
21
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
During the financial year, the principal activities of the entities within the Group and across the verticals were:
➔ In the Performance & Health vertical, a range of SaaS tracking technologies that use proprietary algorithms to
quantify the load, effort and fatigue levels of athletes enabling them to maximize performance and minimize
injury.
➔ In the Tactics & Coaching vertical, a range of video analysis software that segments game footage, enables
instant video manipulation and replay, scouting of upcoming opponents, and more effective tactical and coaching
practices and outcomes.
➔ In the Management vertical, AMS or the ‘athlete management system’, which is a cloud-based repository for
wellness information that teams use to better understand athlete welfare, and an administration tool to plan
rostering and the like.
➔ In the Professional Services vertical, a range of services that maximize the productivity of customers’ sports
technology, providing them with sports science insights and perspectives to gain a competitive edge.
➔ In the Media & Engagement vertical, a range of services to manage and monetize the video content assets (i.e.,
footage) of customers, to drive fan engagement via social media, generate revenue from media licensing, and
facilitate talent scouting of athletes.
The Group’s wearable and video solution products are provided to elite clients on both a subscription and upfront
capital sales basis, with subscription sales forming the vast majority of all sales to elite clients. Catapult is the global
leader in wearable tracking technology and analytics solutions for the sports performance market with more than
3,800 teams (FY22: 3,400 teams). Catapult is also a market leader in providing innovative digital and video analytic
software solutions to elite sports teams globally.
With major offices in Australia, the United States and the United Kingdom and over 460 staff in 28 countries (FY22:
500 staff in 28 countries), Catapult is a global technology success story that is committed to advancing the way
data is used in elite sports.
Based on the expected demand for athlete analytics globally and the continued growth in the Group’s sales and
marketing platform across key regions, we are optimistic about the long-term growth opportunity.
Furthermore, Catapult has broadened its suite of athlete analytics solutions through organic growth and through
acquisitions, resulting in a substantially larger addressable market opportunity across a wider range of customers in
both elite and prosumer sporting leagues. Catapult expects to benefit in these and other segments with increasing
sales and technical functionality.
BUSINESS RISK
In executing its growth plans, Catapult is subject to the market, operational and acquisition risks, including those
outlined below:
Pandemic Risks
The COVID-19 crisis has caused significant disruption in sports globally. Despite the trend returning to normalcy, a
pandemic, including COVID-19 remains a risk for the Company. A pandemic or resurgence of COVID-19, including
through new variants, may cause the closure or disruption of sporting events, reduce customer demand, adversely
affect supply chain management, cause people movement disruptions and financial market volatility (including
currency markets) and otherwise adversely affect the business. A pandemic may affect the ability of Catapult’s
customers or suppliers to comply with their obligations under their agreements and influence renewal or subsequent
contracting decisions. Catapult continues to assess the impact of COVID-19 on the business and continues to consider
ways to mitigate any risks to the Company, including monitoring the impact of Government requirements and health
measures on relevant markets, and supporting customers and employees to provide a safe working environment as
well as supporting hybrid and remote working.
UNLEASH POTENTIAL
22
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
Economic Risk
Catapult may be affected by general economic conditions. Changes in the broader economic and financial climate
may adversely affect the conduct of Catapult’s operations.
In particular, sustained economic downturns in key geographies or sectors (in particular, sports business and consumer
sectors), where Catapult is focused may adversely affect its financial performance. Changes in economic factors
affecting general business cycles, global health risks such as the pandemic, inflation, legislation, monetary and
regulatory policies, the increased level of global uncertainty and volatility associated with the conflict in Ukraine, the
imposition of sanctions and export controls, as well as changes to accounting standards, may also affect the
performance of Catapult. Additionally, while the US regional banking crisis has not adversely affected Catapult,
further US bank or financial institution closures and continued global banking instability may affect Catapult’s ability
to access cash, cash equivalents, and short and long-term investments, which could have a material adverse effect on
Catapult’s business and financial condition. Such factors, in addition to other macroeconomic conditions, may
adversely affect our customers and suppliers, which could also have a material adverse effect on Catapult’s business
and financial condition. To help mitigate these risks, Catapult maintains a cash management strategy and continues
to monitor its partner financial institutions and key markets. Further, detailed financial oversight allows responsive
changes to the business following variations to the economic and financial climate.
Industry and Competition Risk
Catapult’s performance could be adversely affected if existing or new competitors reduce Catapult’s market share,
or its ability to expand into new market segments. Catapult’s existing or new competitors may have substantially
greater resources and access to more markets than Catapult. Competitors may succeed in developing new
technologies or alternative products which are more innovative, easier to use or more cost effective than those that
have been or may be developed by Catapult. This may place pricing pressure on Catapult’s product offering and may
impact on Catapult’s ability to retain existing clients, as well as Catapult’s ability to attract new clients. If Catapult
cannot compete successfully, Catapult’s business, operating results and financial position could be adversely impacted.
Catapult mitigates these risks by continually striving for product innovation and development, pursuing strategic
partnerships or acquisitions where appropriate, and monitoring competitor and industry activity to provide products
that customers need.
Technology and Hosting Platforms
Catapult relies on third-party hosting providers to maintain continuous operation of its technology platforms, servers
and hosting services and the cloud-based environment in which Catapult provides its products. There is a risk that
these systems may be adversely affected by various factors such as damage, faulting or aging equipment, power
surges or failures, computer viruses, or misuse by staff or contractors. Catapult regularly monitors platform
performance to attenuate this risk.
Other factors such as hacking, denial of service attacks, or natural disasters may also adversely affect these systems
and cause them to become unavailable. Catapult’s development of business continuity and crisis management plans
is designed to help mitigate these concerns.
Further, if Catapult’s third-party hosting provider ceased to offer its services to Catapult and Catapult was unable to
obtain a replacement provider quickly, this could lead to a disruption of service to the Catapult website and cloud
infrastructure. This could lead to a loss of revenue while Catapult is unable to provide its services, as well as adversely
affecting its reputation. This could have a material adverse effect on Catapult’s financial position and performance.
Cyber Security and Data Breaches
Catapult provides its services through cloud-based and other online platforms. Despite investing in, and developing,
our in-house technology capabilities, engaging reputable third-party IT service providers, and educating employees on
data security and awareness, hacking or exploitation of any vulnerability on those platforms could lead to loss, theft
or corruption of data. This could render Catapult’s services unavailable for a period while data is restored. Catapult’s
services frequently involve processing sensitive personal or corporate confidential information. Such sensitive
information could be taken, lost or viewed by unauthorized persons, either maliciously or via administrative or user
UNLEASH POTENTIAL
23
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
error. Such a data breach or other cyber incident could lead to unauthorized disclosure of users’ data with associated
reputational damage, claims by users, regulatory scrutiny and fines. Although Catapult employs strategies and
protections to improve the quality of its administrative processes and global cyber security review, including Audit and
Risk Committee risk updates, and ongoing external cyber threat assessments to minimize security breaches and to
protect data, these strategies and protections might not be entirely successful. In that event, disruption to Catapult’s
services could adversely impact on Catapult’s revenue, profitability and growth prospects. The loss of client data could
have severe impacts on client service, reputation, and the ability for clients to use the products.
Manufacturing and Product Quality Risks
Catapult currently uses third-party manufacturers to produce components of its products. There is no guarantee that
these manufacturers will be able to meet the cost, quality and volume requirements that are required to be met for
Catapult to remain competitive. Catapult’s products must also satisfy certain regulatory and compliance
requirements, which may include inspection by regulatory authorities. Failure by Catapult or its suppliers to
continuously comply with applicable requirements could result in enforcement action being taken against Catapult.
Catapult continues to manage these risks by searching for replacement components, placing component orders well
in advance, placing larger orders to increase stock on hand levels, and allowing the business sufficient time to respond
to shortages and make necessary changes to manufacturers.
As a manufacturer, importer and supplier of products, product liability risk, faulty products and associated recall are
key risks of the Catapult business. While Catapult has product liability insurance, not all claims will be covered by this,
and any issues arising from product liability faults may be significant and beyond the protection of Catapult’s existing
insurance coverage.
Foreign Exchange
Foreign exchange rates are particularly important to Catapult’s business, given the significant amount of revenue that
Catapult derives outside the United States of America. Catapult’s financial statements are presented in US dollars.
Adverse movements in foreign currency markets, which are regularly monitored by Catapult, could affect Catapult’s
profitability and financial position.
Development and Commercialization of Intellectual Property
Catapult relies on its ability to develop and commercialize its intellectual property. A failure to protect, develop and
commercialize its intellectual property successfully could lead to a loss of opportunities and adversely impact the
operating results and financial position of Catapult. Furthermore, any third party developing superior technology or
technology with greater commercial appeal in the fields in which Catapult operates may harm the prospects of
Catapult.
Catapult’s success depends, in part, on its ability to obtain, maintain and protect its intellectual property, including its
patents. Actions taken by Catapult to protect its intellectual property, including regular trademark searches and
strategic protection of the register, may not be adequate, complete or enforceable and may not prevent the
misappropriation of its intellectual property and proprietary information or deter independent development of similar
technologies by others.
The granting of a patent does not guarantee that Catapult’s intellectual property is protected and that others will
not develop similar technologies that circumvent such patents. There can be no assurance that any patents Catapult
owns, controls or licenses, whether now or in the future, will give Catapult commercially significant protection of its
intellectual property.
While Catapult regularly monitors unauthorized use of its intellectual property rights, this can be difficult and costly.
Catapult may not be able to detect unauthorized use of its intellectual property rights. Changes in laws in Australia
and other jurisdictions in which Catapult operates may adversely affect Catapult’s intellectual property rights.
Other parties may develop and patent substantially similar or substitute products, processes, or technologies to those
used by Catapult, and other parties may allege that Catapult’s products incorporate intellectual property rights
derived from third parties without their permission. Catapult may be subject to a claim that its current products
infringe the intellectual property rights of a third party. Allegations of this kind, if successful, may result in injunctions
UNLEASH POTENTIAL
24
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
OPERATING AND FINANCIAL REVIEW
being granted against Catapult which could materially affect the operation of Catapult and Catapult’s ability to earn
revenue, and cause disruption to Catapult’s services. The defense and prosecution of intellectual property rights
lawsuits, proceedings, and related legal and administrative proceedings are costly and time-consuming, and their
outcome is uncertain. In addition to its patent and licensing activities, Catapult also relies on protecting its trade
secrets. Actions taken by Catapult to protect its trade secrets may not be adequate and this could erode its
competitive advantage in respect of such trade secrets. Further, others may independently develop similar
technologies.
Further Product Development Risk
Catapult has developed its athlete video and tracking technology and software products and continues to invest in
further systems and product development.
Catapult cannot be certain that further development of its video and athlete tracking technology, software products,
or online sport learning platform will be successful, that development milestones will be achieved, or that Catapult’s
intellectual property will be developed into further products that are commercially exploitable. There are many risks
inherent in the development of technologies and related products, particularly where the products are in the early
stages of development. Projects can be delayed or fail to demonstrate any benefit or may cease to be viable for a
range of reasons, including scientific and commercial reasons. Catapult seeks to alleviate some of these risks by
undertaking customer feedback programs to inform future product development priorities.
Brand and Reputation Damage
The brand and reputation of Catapult and its individual products are important in retaining and increasing the number
of clients that utilize Catapult’s technology and products and could prevent Catapult from successfully implementing
its business strategy. Any reputational damage or negative publicity surrounding Catapult, or its products could
adversely impact on Catapult’s business and its future growth and profitability. Catapult’s policies and procedures,
and the training provided to employees, help to manage these risks.
Product Liability
Catapult’s business exposes it to potential product liability claims related to the manufacturing, marketing and sale
of its products. Catapult maintains product liability insurance and regularly reviews the level and scope of such cover
to ensure it is appropriate. However, to the extent that a claim is brought against Catapult that is not covered or fully
covered by insurance, such a claim could have a material adverse effect on the business, financial position and results
of Catapult. Claims, regardless of their merit or potential outcome, may adversely impact Catapult’s business and its
future growth and profitability.
Litigation
Catapult may, in the ordinary course of business, be involved in disputes. These disputes could give rise to litigation
which may be costly and may adversely affect the operational and financial results of Catapult. Catapult maintains
financial oversight to enable responsive changes to spending in the event of such a dispute.
Catapult Sports Inc. is the subject of a patent infringement claim filed by Charles Smith Enterprises, LLC (a non-
practising entity) filed before the District Court of Delaware. While the claim involves a current Catapult product, it
is not anticipated that this claim will materially affect the operation of Catapult or cause disruption to Catapult’s
products and services. Catapult Group International Ltd is the subject of a trademark opposition procedure filed
before the United States Trademark Trial and Appeal Board (TTAB) by adidas AG in respect of a pending trademark
application in the United States. It is not anticipated that this trademark opposition will materially affect the
operation of Catapult or cause disruption to Catapult’s products and services.
Given the above circumstances, no provisions have been recognized at March 31, 2023 in respect of either matter.
UNLEASH POTENTIAL
25
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
The Directors of Catapult Group International Ltd (‘Catapult’ or the 'Company’) present their Report together with
the financial statements of the consolidated entity, being the Company and its controlled entities (the ‘Group’) for
the 12-month period ended March 31, 2023 (‘FY23’ or ‘financial year’).
DIRECTOR DETAILS
The following persons were Directors of Catapult Group International Ltd during or since the end of the financial
year.
DR ADIR SHIFFMAN
MBBS, Medicine
Executive Chairman
Appointed September 4, 2013
Member of Nomination and Remuneration Committee
Member of SaaS Scaling Committee
Dr Adir Shiffman, Executive Chairman of Catapult, has
extensive CEO and board experience in the technology
sector.
Adir has founded and sold more than half a dozen
technology startups, many of which were high growth
SaaS (software as a service) businesses. His expertise
includes strategic planning, international expansion,
mergers and acquisitions, and strategic partnerships.
Adir currently sits on several boards. He is regularly
featured in the media in Australia, the US and Europe.
Adir graduated from Monash University with a
Bachelor of Medicine and a Bachelor of Surgery. Prior
to becoming involved in the technology sector, he
practised as a doctor.
Directorships of listed companies over the past three
years:
None
MR SHAUN HOLTHOUSE
B.E. (Hon), Mechanical Engineering, GAICD
Founder, Non-Executive Director (previously Chief
Executive Officer (CEO) until April 30, 2017)
Shaun co-founded Catapult in 2006 and served as
CEO up until April 30, 2017. During that time, he played
a central role
in developing Catapult’s wearable
technology and is the author of many of its patents.
into more than 15 countries -
Under his leadership Catapult launched and expanded
sales
including
establishing subsidiaries
in the US and UK and
becoming the dominant elite wearable company
globally.
Shaun was responsible for raising early capital, listing
on the ASX, acquiring GPSports, XOS and Kodaplay
(Playertek) and developing Catapult’s strategy to
grow from a wearable only company to building out the
technology stack for elite sport and leveraging this into
consumer team sports.
technology
Prior to Catapult, Shaun had extensive experience in
commercial
transitioning
new
products, including biotechnology, MEMS, fuel cells,
and scientific instrumentation.
into
Shaun holds a Bachelor of Engineering (Hons) from the
University of Melbourne and is a graduate member of
the Australian Institute of Company Directors. He is
the author of numerous patents and patent
applications in athlete tracking, analytics and other
technologies. He also works as a professional Director
as well as providing advisory services for technology
start-ups.
Directorships of listed companies over the past three
years:
None
UNLEASH POTENTIAL
26
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
MR IGOR VAN DE GRIENDT
B.E. Electrical Engineering
Founder, Non-Executive Director
Member of Audit and Risk Committee
Mr Igor van de Griendt has served as Chief Operating
Officer (COO), Chief Technology Officer (CTO) and as
an Executive Director before moving into a Non-
Executive Director role in July 2019.
In his capacity as CTO, he was responsible for providing
strategic direction and leadership in the development
of Catapult’s products, both in the analytical and cloud
space, as well as with respect to Catapult’s various
wearable product offerings.
Igor also provided
guidance and operational support to Catapult’s
Research & Development (R&D), software and cloud
development teams during that time.
Prior to co-founding Catapult, Igor was a Project
Manager for the CRC for MicroTechnology which, in
collaboration with the Australian Institute of Sport,
developed several sensor platforms and technologies
ultimately leading to the founding of Catapult.
Prior to joining the CRC for MicroTechnology, Igor ran
his own consulting business that provided engineering
services for more than 13 years to technology
companies such as Redflex Communications Systems
(now part of Exelis, NYSE:XLS), Ceramic Fuel Cells
(ASX:CFU), Ericsson Australia, Siemens, NEC Australia
and Telstra.
Igor holds a Bachelor of Electrical Engineering from
Darling Downs Institute of Advanced Education (now
University of Southern Queensland). Igor is also the
author of numerous patents and patent applications in
athlete tracking, and other sensor technologies.
Directorships of listed companies over the past three
years:
None
MR JAMES ORLANDO
BSc, MBA, GAICD
Independent Non-Executive Director (previously
interim Chief Financial Officer (CFO) from March 25,
2019, until January 28, 2020)
Appointed October 24, 2016
Chair of Audit and Risk Committee
Member of Nomination and Remuneration Committee
Mr James Orlando has held senior finance positions
driving growth and shareholder value in the United
States, Asia and Australia. Most recently he was the
CFO of Veda Group Ltd (VED.ASX), leading the
company through its successful IPO in December 2013.
Before joining Veda, James was the CFO of AAPT
where he focused on improving the company’s earnings
as well as divesting its non-core consumer business.
He also served as the CFO of PowerTEL Ltd, an ASX-
listed telecommunications service provider which was
sold to Telecom New Zealand in 2007. James also held
various international treasury positions at AT&T and
Lucent Technologies in the US and Hong Kong including
running Lucent’s international project and export
finance organization.
Directorships of listed companies over the past three
years:
None
UNLEASH POTENTIAL
27
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
MS MICHELLE GUTHRIE
BA/Law (Hons)
MR THOMAS F. BOGAN
BSBA
Independent Non-Executive Director
Independent Non-Executive Director
Appointed December 1, 2019
Appointed April 1, 2021
Chair of Nomination and Remuneration Committee
Chair of SaaS Scaling Committee
Member of Audit and Risk Committee
Over the last 25 years, Michelle has held senior
management roles at leading media and technology
companies in Australia, the UK and Asia, including
BSkyB, Star TV and Google. She has extensive
experience and expertise in media management, and
content development, with deep knowledge of
traditional broadcasting, the digital media landscape
and the transformation necessary to embrace the
digital consumer.
From 2003 to 2007, Michelle was based in Hong Kong
as Chief Executive Officer of STAR TV, responsible for
pay TV platforms and content development in India,
China, Indonesia and across Asia. She then spent
several years as an equity adviser and investor for
Providence Equity covering Asia Pacific from Hong
Kong, before moving to Singapore for a senior role at
Google Asia Pacific.
In her role at Google as Managing Director for Agencies,
Michelle developed business partnerships with key
global advertising agencies.
From 2016 to 2018, Michelle was the Managing
Director of the Australian Broadcasting Corporation
where she led the transformation of the organization,
increasing the efficiency and effectiveness of work
across the ABC as well as investing in investigative
journalism,
innovative
Australian content.
journalism and
regional
Mr Thomas Bogan currently serves as a director of
several software companies. Until January 2022
Thomas served as Vice Chairman of Workday, a
leading provider of enterprise cloud applications for
finance and human resources with an annual revenue
of over $6 billion for its most recently completed fiscal
year.
Thomas joined Workday in 2018 following its US$1.5bn
acquisition of Adaptive Insights, where he served as
CEO. He was also a board member of several public
and private software companies including Chairman of
Citrix Systems (Nasdaq: CTXS). He was also Chairman
of Nasdaq-listed Apptio until its approximate US$2bn
acquisition by Vista Equity Partners in 2019.
Previously, Thomas spent more than five years as a
partner at high-profile venture capital fund Greylock
Partners, where he focused on enterprise software
investments. He also served as president and COO at
Rational Software until it was acquired by IBM for
US$2.1bn
in 2003, as well as CEO at Avatar
Technologies and Pacific Data.
As Chairman of the SaaS Scaling Committee, Thomas
supports the board and management with growth-
oriented SaaS-model innovations.
Directorships of listed companies over the past three
years:
Workday,
Technology, Inc. (since May 2022).
Inc. (since February 2022) and Aspen
Michelle holds a Bachelor of Arts and Law (Honours)
from the University of Sydney.
Directorships of listed companies over the past three
years:
StarHub Ltd (since August 2017), BNK Banking
Corporation Limited (since July 2021), and Chair of
Mighty Kingdom Ltd (since November 2020).
UNLEASH POTENTIAL
28
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
COMPANY SECRETARY
Jonathan Garland commenced as Company Secretary on August 12, 2020. Jonathan’s career includes extensive ASX-
listed general counsel and Company secretarial experience, as well as a wide-ranging international corporate legal
background. Jonathan graduated with honours degrees in both Law and Commerce from the University of Melbourne.
DIRECTORS’ MEETINGS
The number of Directors’ meetings (including meetings of Committees of Directors) held during the financial year, and
the number of meetings attended by each Director, is as follows:
Director’s
Name
Board Meetings
Audit and Risk
Committee
Nomination and
Remuneration
Committee
SaaS Scaling
Committee
A
10
10
10
10
10
10
Adir
Shiffman
Shaun
Holthouse
Igor van de
Griendt
James
Orlando
Michelle
Guthrie
Thomas
Bogan
Where:
B
9
10
10
10
10
9
A
1
-
4
4
4
-
B
1
-
4
4
4
-
A
4
-
-
4
4
-
B
4
-
-
4
4
-
A
4
-
-
-
-
4
B
4
-
-
-
-
4
(i)
Column A is the number of meetings the Director was entitled to attend; and
(ii) Column B is the number of meetings the Director attended.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were the sale of wearables subscriptions, wearable units and
hardware, the rendering of software services and content licensing; all related to sports.
DIVIDENDS
In respect of the current financial year, no dividend has been paid by Catapult Group International Ltd.
UNLEASH POTENTIAL
29
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
UNISSUED SHARES UNDER OPTION AND RIGHTS
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Date Options
Granted
Expiry Date
Fair value at Grant
Date
Exercise Price of
Options
Vesting Date
Number under
Options
January 23, 2019
June 30, 2023
August 20, 2019
August 31, 2024
November 27, 2019 March 24, 2024
A$0.17
A$0.42
A$1.37
A$1.42
June 30, 2021
452,000
A$1.26
August 31, 2022
490,000
A$0.78 March 25, 2020
611,112
September 14,
2020
May 31, 2025
A$0.75
A$1.30
May 31, 2023
March 31, 2022
May 31, 2025
A$0.44
A$1.30
May 31, 2023
3,541,766
82,841
5,177,719
UNLEASH POTENTIAL
30
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
During the financial year ended March 31, 2023, the Company issued 9,089,628 rights as part of the Employee Share
Plan.
Unissued ordinary shares of the Company under rights at the date of this report are as follows:
Date Rights Granted
Expiry Date
Fair value at
grant Date
Exercise Price
of Rights
Vesting Date
Number under
Rights
21,715
528,017
September 14, 2020
May 31, 2023
A$1.90
A$0.00
May 31, 2022
July 1, 2021
July 1, 2021
June 30, 2023
A$1.99
A$0.00
June 30, 2022
June 30, 2025
A$1.99
A$0.00
June 30, 2024
1,017,300
September 30, 2021
June 30, 2023
A$1.93
A$0.00
June 30, 2022
September 30, 2021
June 30, 2023
A$1.93
A$0.00
June 30, 2022
September 30, 2021
September 9, 2023
A$1.93
A$0.00
September 9, 2022
September 30, 2021
June 30, 2025
A$1.93
A$0.00
June 30, 2024
December 31, 2021
June 30, 2023
A$1.55
A$0.00
June 30, 2022
December 31, 2021
June 30, 2025
A$1.55
A$0.00
June 30, 2024
March 31, 2022
June 30, 2023
A$1.45
A$0.00
June 30, 2022
June 21, 2022
June 30, 2023
A$0.83
A$0.00
June 30, 2022
July 8, 2022
June 30, 2025
A$0.90
A$0.00
June 30, 2024
62,592
13,360
28,221
32,675
61,487
54,274
24,142
1,837
18,529
July 25, 2022
June 30, 2026
July 25, 2022
June 30, 2024
July 31, 2022
June 30, 2024
July 31, 2022
June 30, 2026
August 2, 2022
June 30, 2024
A$0.95
A$0.95
A$1.00
A$1.00
A$1.00
A$0.00
June 30, 2025
1,390,400
A$0.00
June 30, 2023
4,868,276
A$0.00
June 30, 2023
A$0.00
June 30, 2025
A$0.00
June 30, 2023
September 30, 2022
June 30, 2024
A$0.83
A$0.00
June 30, 2023
October 7, 2022
September 30, 2024
A$0.88
A$0.00 September 30, 2023
October 7, 2022
September 30, 2026
A$0.88
A$0.00 September 30, 2025
November 1, 2022
September 30, 2024
November 1, 2022
September 30, 2026
November 30, 2022
June 30, 2023
December 6, 2022
September 30, 2024
December 12, 2022
September 30, 2024
A$0.87
A$0.87
A$0.82
A$0.81
A$0.72
A$0.00 September 30, 2025
A$0.00
November 30, 2022
A$0.00 September 30, 2023
A$0.00 September 30, 2023
March 27, 2023
September 30, 2026
A$0.70
A$0.00 September 30, 2025
March 31, 2023
December 31, 2026
March 31, 2023
December 31, 2024
A$0.67
A$0.67
A$0.00
December 31, 2025
A$0.00
December 31, 2023
A$0.00 September 30, 2023
133,020
385,700
413,600
212,695
181,146
37,600
24,300
39,540
5,087
39,380
4,480
50,800
9,200
30,540
9,689,913
All options and rights expire on their expiry date. All options and rights are issued in accordance with the CSESP, as
approved by shareholders.
UNLEASH POTENTIAL
31
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
SHARES ISSUED DURING OR SINCE THE END OF THE YEAR AS A RESULT OF EXERCISE
During the financial year ended March 31, 2023, the Company transferred to employees 4,085,015 treasury shares as
performance rights exercised under the Employee Share Plan. The rights were exercised at an average exercise price
of A$0.00.
OPERATING AND FINANCIAL REVIEW
The Operating and Financial Review (OFR), which is incorporated by reference into, and forms part of this Directors’
Report, is presented separately on page 19.
REMUNERATION REPORT
The Remuneration Report (audited), which is incorporated by reference into, and forms part of, this Directors’ Report,
is presented separately on page 35.
INDEMNITIES GIVEN AND INSURANCE PREMIUMS PAID TO AUDITORS AND OFFICERS
The Company indemnifies Directors, secretaries and executive officers of the Company and its subsidiaries against
any liability incurred as a result of them being, or acting in their capacity as, an officer of the Company or a subsidiary,
to the maximum extent permitted by law. No payment has been made to indemnify any director, secretary or executive
officer of the Company or its subsidiaries during, or since the end of, the financial year.
The Company also maintains a Directors’ and Officers’ insurance policy which, subject to some exceptions, provides
insurance cover to past, present or future officers of the Company and its subsidiaries, including all Directors of the
Company. The Company paid an insurance premium for the policy during the year. Details of the amount of the
premium paid in respect of insurance policies are not disclosed as such disclosure is prohibited under the terms of the
contract.
To the extent permitted by law, the Company has agreed to indemnify Ernst & Young, as part of the terms of its audit
engagement agreement, against claims by third parties arising from the audit (for an unspecified amount). No
payment has been made to indemnify Ernst & Young during, or since the end of, the financial year.
NON-AUDIT SERVICES
During FY23, Ernst & Young, the Company’s auditors, performed no non-audit services for Company. During FY22,
Ernst & Young, the Company’s auditors, performed certain other services in addition to their statutory audit duties.
The auditors complied with the Board’s expectations of meeting the auditor independence requirements of the
Corporations Act 2001.
The Board has considered the non-audit services provided during the prior financial year by the auditors. It is satisfied
that the provision of those non-audit services during the prior financial year is compatible with, and did not
compromise, the auditor independence requirements of the Corporations Act 2001 for the reason the non-audit
services do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics
for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing
risks and rewards.
Details of the amounts paid to the auditors of the Company and their related practices for audit and non-audit
services provided during the financial year are set out in Note 26 to the financial statements.
A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations Act 2001, is included
on page 34 of this financial report and forms part of this Directors’ Report.
ENVIRONMENTAL LEGISLATION
Catapult’s operations are not subject to any particular or significant environmental regulation under a law of the
Commonwealth or of a State or Territory in Australia.
UNLEASH POTENTIAL
32
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ REPORT
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, to take responsibility on
behalf of the Company for all or part of those proceedings.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than as set out in the Financial and Operating Performance section of the Operating and Financial Review,
there were no significant changes in the state of affairs of the Company during the year.
EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD
➔
The Company announced on March 28, 2023 an executive transition with the appointment of a new Chief
Financial Officer, Bob Cruickshank, based in the United States. The then-current CFO, Hayden Stockdale, will
leave the Company at the end of May 2023 following a handover period that commenced in early April 2023.
➔
The Company launched a new athlete monitoring solution, the Vector T7, on April 1, 2023. The device is 73%
smaller than its predecessor and delivers the most accurate and comprehensive player data in indoor
environments, including the Company’s proprietary “Basketball Movement Profile.”
The Directors are not aware of any matter or circumstance that has arisen since the end of the financial year that, in
their opinion, has significantly affected, or may significantly affect in future years, Catapult’s operations, the results
of those operations or the state of Catapult’s affairs.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 relating to the ‘rounding off’ of amounts in the Directors’ Report and, in accordance with that instrument,
amounts in the Directors’ Report have been rounded off to the nearest thousand dollars, or in certain cases, to the
nearest dollar.
Signed in accordance with a resolution of the Directors.
Dr Adir Shiffman
Executive Chairman
May 22, 2023
I M P O R T A N T N O T I C E
This document including the Directors’ Report, Remuneration Report and financial statements, may contain forward-looking
statements including plans and objectives. Do not place undue reliance on them as actual results may differ and may do so materially.
They reflect Catapult’s views as at the time made, are not guarantees of future performance and are subject to uncertainties and
risks, such as those described in Catapult’s most recent financial report. Subject to law, Catapult assumes no obligation to update,
review or revise any information in this document.
While Catapult’s results are reported under IFRS, this document may also include non-IFRS information (such as Underlying EBITDA,
EBITDA, Gross Margin, Contribution Margin, free cash flow, annual recurring revenue (ARR), annualized contract value (ACV), lifetime
duration (LTD), and ACV churn. These measures are provided to assist in understanding Catapult’s financial performance. They may
not have been independently audited or reviewed, and should not be considered an indication of, or an alternative to, IFRS measures.
The information in this document is for general information purposes only and does not purport to be complete. It should be read in
conjunction with Catapult’s other market announcements. Readers should make their own assessment and take professional
independent advice prior to taking any action based on the information.
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided, and percentages
may not precisely reflect the presented figures.
UNLEASH POTENTIAL
33
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S INDEPENDENCE DECLARATION
UNLEASH POTENTIAL
34
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 8 Exhibition Street Melbourne VIC 3000 Australia GPO Box 67 Melbourne VIC 3001 Tel: +61 3 9288 8000 Fax: +61 3 8650 7777 ey.com/au Auditor’s independence declaration to the directors of Catapult Group International Ltd As lead auditor for the audit of the financial report of Catapult Group International Ltd for the financial year ended 31 March 2023, I declare to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; b. No contraventions of any applicable code of professional conduct in relation to the audit; and c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit. This declaration is in respect of Catapult Group International Ltd and the entities it controlled during the financial year. Ernst & Young Ashley Butler Partner 22 May 2023
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
The Directors of the Company present the Remuneration Report for Non-Executive Directors, Executive Directors,
and other Key Management Personnel (‘KMP’), prepared in accordance with the Corporations Act 2001 and the
Corporations Regulations 2001.
Overview
The Board’s Nomination and Remuneration Committee, which operates in accordance with its charter as approved by
the Board, is responsible for determining and reviewing remuneration arrangements for executive management and
Directors.
Catapult's remuneration policy emphasizes the Board’s desire to align executive remuneration with shareholder
interests, attract and retain business critical talent, and preserve cash. The plan outcomes remain aligned with
shareholder interests, are reflective of a modern technology company at Catapult's stage of evolution and are
consistent with market practice within the key regions Catapult operates within. As such, FY23 executive remuneration
arrangements comprised the following components:
• A market competitive remuneration mix consisting of fixed and ‘at risk’ components. The ‘at risk’ components
consist of STI(i) and LTI(ii) under a clearly defined framework with a greater emphasis on the ‘at risk’ component
than in previous years;
• Equity-based STI awards that are based on a combination of executive and company performance, allocated on
an annual basis using a share price with a 12.5% premium over a 30-day average VWAP prior to June 1, granted
on July 1 for vesting over a 12-month period from the grant date. With respect to new starters, different grant
dates are applied to the annual assessment; and
• Equity-based LTI awards that are based on a combination of executive and company performance, allocated on
an annual basis using a share price with a 62% premium over a 30-day average VWAP prior to June 1, granted on
July 1 for vesting over a 36 month period from grant. With respect to new starters different grant dates are
applied to the annual assessment.
(i)
(ii)
STI refers to Short Term Incentive
LTI refers to Long Term Incentive
Note that the Board retains a wide discretion in relation to equity-based awards, including what aspects of corporate
and personal performance are assessed in a performance year, what performance KPIs, hurdles, and outcomes are,
when and what form rewards are made and vest.
Catapult’s target remuneration mix for FY23 was as follows:
Remuneration Mix
Base Salary
Will Lopes - CEO
Hayden Stockdale - CFO
53%
57%
STI
25%
17%
LTI
22%
26%
Total Target
Remuneration
100%
100%
The remuneration objectives and structure, including participation and the associated terms and conditions for both
the STI and LTI plans are reviewed annually by the Nomination and Remuneration Committee, with recommendations
for change put to the full Board for approval as part of regular reviews of Catapult’s Remuneration Policy. Variations
within the Policy are considered on a case-by-case basis to ensure Catapult retains flexibility in the various
international markets in which it operates.
UNLEASH POTENTIAL
35
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Director Remuneration
The Company introduced a Director Salary Sacrifice Plan during FY23 to align Director remuneration outcomes with
shareholders. Plan features are disclosed in this report.
Catapult’s remuneration strategy relating specifically to executives during FY23 remained the same as in FY22 and is
set out in the following diagram.
Catapult Executive KMP Remuneration Objectives
Shareholder value creation
through equity components
An appropriate balance of
‘fixed’ and ‘at risk’
components
Creation of award
differentiation to drive
performance culture and
behaviours
Attract, motivate and retain
executive talent required at
stage of development
Base Salary and Total Target Remuneration (TTR) (i) is set by reference to relevant market benchmarks
At Risk
Short-Term Incentives
Long-Term Incentives
(STI)
(LTI)
STI performance outcomes are based on
assessments of performance targets
appropriate to the specific position and set
each performance year.*
LTI performance outcomes are based on
assessments of performance targets
appropriate to the specific position and
set each performance year.*
Fixed
Base Salary
Fixed remuneration is
set based on relevant
market relativities
reflecting
responsibilities,
performance,
qualifications,
experience, and
geographic location
Remuneration to be delivered as:
Base salary
Performance Rights, FY23 allocation based
on the most recent assessment of
performance. A 12 month vesting period is
applied.
Performance Rights, FY23 allocation
based on the most recent assessment of
performance. A 36 month vesting period is
applied
(i) TTR refers to the total amount of pay that a role will earn for 100% achievement of expected results. It is intended to be
positioned in the 3rd quartile when compared to peer groups comprising of similar companies in terms of industry and financial
performance.
*
Note that the Board retains a wide discretion in relation to equity-based awards, including what aspects of corporate and personal
performance are assessed in a performance year, what performance KPIs, hurdles, and outcomes are, when and what form rewards are made
and vest.
UNLEASH POTENTIAL
36
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Short-Term Incentive (STI) & Long-Term Incentive (LTI) – FY23
For FY23, executive STI awards were based on the most recent assessment of performance. As FY22’s Company
Scorecard impacted the legacy STI outcome, the FY23 award opportunities, which under the new plan are granted
towards the beginning of the financial year, were based on the most recent assessment of performance. The
assessment was made against the business-critical, financially focussed, company-focussed objectives set for the
executives. Performance hurdles are set annually to determine and drive executive performance alignment with long-
term shareholder interests. The Board applied measurable and controllable objectives which align with strategic
objectives and enhance shareholder value. To ensure the grants were aligned with shareholder interests, STI grants
were made using a 12.5% premium upon the allocation share price as at June 1, 2022. LTI grants were made using a
62% premium upon the allocation share price as at June 1, 2022.
The Executive Chairman’s FY23 STI award continued to be based on the annual Company scorecard. The FY23
Company scorecard included an ACV growth metric target (25% weighting), an EBITDA margin target (25%
weighting), and a Free Cash Flow target (50% weighting). The FY23 scorecard achieved an 88% weighted outcome
against the target hurdles, as noted above.
Some additional key financial performance measures are highlighted in the following table:
Item
2023
2022
2021
2020
2019
(12 months)
(12 months)
(9 months)
(12 months)
(12 months)
EPS (US Cents)
Dividends (US cents per
share)
Revenue (US$’000)
Underlying
EBITDA*(US$’000)
EBITDA (US$’000)
Net loss (US$’000)
Opening share price (A$)
Closing share price (A$)
(13.4)
-
84,360
(3,197)
(11,015)
(31,484)
1.445
0.665
(14.8)
-
77,013
(5,835)
(14,270)
(32,187)
1.890
1.445
(4.6)
-
50,042
3,447
2,208
(8,841)
1.125
1.890
(2.7)
-
67,678
9,423
8,875
(5,161)
1.095
1.125
(4.9)
-
67,963
3,908
2,721
(9,175)
1.225
1.095
*
**
Underlying EBITDA is operating (loss)/profit, adding back employee share plan costs (excluding Executive share-based remuneration) and
severance costs. Included in the 2023 & 2022 adjustment is the SBG acquisition consideration treated as share-based payment expense.
Underlying EBITDA is a non-IFRS measure and is unaudited.
All amounts in the table above are denoted in US Dollars unless otherwise stated.
UNLEASH POTENTIAL
37
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
During FY23, the following STI awards are payable by cash:
Name
Adir Shiffman –
Executive Chairman
Total at Risk
Amount ($)
Percentage achieved
during the period
STI achieved
STI not achieved
137,340
88%
120,859
16,481
During FY23, the following STI awards were granted during the period:
Name
Will Lopes – Chief
Executive Officer
(CEO)
Hayden Stockdale –
Chief Financial Officer
(CFO)
Total at Risk
Amount ($)
Percentage achieved
during the period^
STI achieved
STI not achieved
350,000
60.58%
212,046
137,954
137,340
60.58%
83,212
54,128
During FY23, the following LTI awards were granted during the period:
Name
Will Lopes – Chief
Executive Officer
(CEO)
Hayden Stockdale –
Chief Financial Officer
(CFO)
Total at Risk
Amount ($)
Percentage achieved
during the period^
LTI achieved
LTI not achieved
450,000
41.87%
188,399
261,601
302,148
41.87%
126,523
175,625
*
^
All amounts for Australian-based KMPs translated from Australian Dollars to United States Dollars at an average exchange rate for the period
ended March 31, 2023 of 0.6867.
STI and LTI achieved in respect of performance, which remains subject to service until May 31, 2023 for Hayden Stockdale and until June 30,
2023 for STI and June 30, 2025 for LTI for Will Lopes
UNLEASH POTENTIAL
38
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Short Term Incentive (STI) - FY23
The FY23 awards were made in accordance with the following STI Plan features:
STI criteria
Description
Participants
STI $ Value
KMP and other employees as determined by the Board.
Individual STI opportunities vary based on remuneration strategy.
Performance Criteria
and Weightings
The KPIs consisted of a mix of financial, customer, product and people related objectives,
with KPIs weighted more towards financial outcomes.
STI vehicle
The award was made in the form of Performance Rights for executives and cash for the
Executive Chairman.
Exercise price
Nil
How much can
executives earn?
Equity allocation
methodology
STI Vesting Period
Service restriction
Vesting date
Clawback
Executives have a STI opportunity of between 30% and 100% of base salary. The STI
opportunity is set each year and will vary at the Company’s discretion with consideration of
Company and personal performance.
Where equity was the vehicle, the number of Performance Rights offered to participants
was determined based on the STI opportunity and using a premium share price based on
30-day VWAP as at June 1, 2022 + 12.5% CAGR for the period April 1, 2022 to June 30, 2023
($1.22 AUD).
A one-year STI vesting period will apply to the FY23 equity awards, with grants made on
July 1, 2022 and vesting on June 30, 2023.
Any STI award will be forfeited if the participant terminates their employment before the
vesting date. The Board has the discretion to apply discretion to this restriction.
For equity awards, on June 30, 2023, at the end of the vesting period. For cash awards, on
or before June 30, 2023, once the STI outcome has been determined.
STI awards will be subject to a Clawback and Malus policy that may apply from time to
time.
How is it paid?
STI rights are exchanged for Catapult shares.
How is performance
measured?
The STI performance measures were chosen as they reflect the core driver’s of short-term
performance and also provide a framework for delivering sustainable value to the Group,
its shareholders and customers. The performance period used is April 1, 2022 to March 31,
2023.
The Company scorecard includes an ACV growth metric target (25% weighting), an
EBITDA margin target (25% weighting), and a Free Cash Flow target (50% weighting).
Non-financial measures included alignment to Company values and reviewing behaviours
against these values with a rating applied to each.
The vesting of the STI award is determined after the end of the financial year following a
review of performance of the year against the STI performance measures by the CEO (and,
in the case of the CEO, the Board). The Board approves the final STI award based on the
assessment of performance.
UNLEASH POTENTIAL
39
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Long Term Incentive (LTI) - FY23
The FY23 awards were made in accordance with the following LTI Plan Rules:
LTI criteria
Description
Participants
LTI $ Value
KMP and other employees as determined by the Board.
Individual LTI opportunities vary based on remuneration strategy.
Performance Criteria
and Weightings
The KPIs consisted of a mix of financial, customer, product and people related objectives,
with KPIs weighted more towards financial outcomes.
LTI vehicle
The award was made in the form of Performance Rights for executives.
Exercise price
Nil
How much can
executives earn?
Equity allocation
methodology
LTI Vesting Period
Service restriction
Vesting date
Clawback
Executives have a LTI opportunity of between 45% and 100% of base salary. The LTI
opportunity is set each year and will vary at the Company’s discretion with consideration of
Company and personal performance.
The number of Performance Rights offered to participants was determined based on the
LTI opportunity and using a premium share price based on 30-day VWAP as at June 1, 2022
+ 17.5% CAGR for the period June 1, 2022 to June 30, 2025 ($1.77 AUD).
A 36-month LTI vesting period will apply to the FY23 equity awards, with grants made on
July 1, 2022 and vesting on June 30, 2025.
Any LTI award will be forfeited if the participant terminates their employment before the
vesting date. The Board has the discretion to apply discretion to this restriction.
For equity awards, on June 30, 2025, at the end of the vesting period.
LTI awards will be subject to a Clawback and Malus policy that may apply from time to
time.
How is it paid?
LTI rights are exchanged for Catapult shares.
How is performance
measured?
The LTI performance measures were chosen as they reflect the core drives of long-term
performance and also provide a framework for delivering sustainable value to the Group,
its shareholders and customers. The performance period used is April 1, 2022 to March 31,
2023.
The FY23 Company scorecard included an ACV growth metric target (25% weighting), an
EBITDA margin target (25% weighting), and a Free Cash Flow target (50% weighting).
Non-financial measures included alignment to Company values, reviewing behaviours
against these values with a rating applied to each.
The vesting of the LTI award is determined after the end of the financial year following a
review of performance over the year against the LTI performance measures by the CEO
(and, in the case of the CEO, the Board). The Board approves the final LTI award based on
the assessment of performance.
UNLEASH POTENTIAL
40
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Director Fee Sacrifice Plan
The Salary Sacrifice Offer is designed to encourage Directors to build their Shareholdings in the Company. It is not
intended to be used for the purposes of providing Directors with additional remuneration.
Participation in the Salary Sacrifice Offer by a Director in respect of their annual base fees is voluntary except for the
Board has determined that fees paid to Directors in their role as Chairman of a Board Committee will be satisfied by
the issue of Rights. Therefore, participation in the Salary Sacrifice Offer by a Director for Chairman Committee fees
will be mandatory. The current fee payable for the Chairmen of the SaaS Scaling Committee, Audit & Risk Committee,
and the Nomination & Remuneration Committee is $100,000 AUD, $40,000 AUD, and $20,000 AUD, respectively.
The material terms of the Salary Sacrifice Offer are set out below.
Amount sacrificed
Voluntary Component
Directors may, at their election, sacrifice up to a maximum of 100% of their
total pre-tax base annual fees (inclusive of superannuation).
There is no minimum amount that a Director must sacrifice in respect of the
voluntary component.
Directors may only sacrifice fees in relation to “prospective” fees.
Mandatory Component
Directors must sacrifice 100% of their pre-tax Chairman Committee fees
(inclusive of superannuation).
Number of Rights to be granted
The maximum number of Rights that may be acquired by Directors depends
on:
•
the amount chosen to be sacrificed by a Director;
•
the amount of a Director’s remuneration from time to time;
• whether a Director is a Chairman of a Board Committee; and
•
the Share price at the time when Rights are granted.
Calculation of the number of
Rights
The number of Rights to be granted will be calculated by reference to a price
(the Reference Price), determined as follows:
Opting in and out
•
•
•
for the period September 1, 2021 to June 30, 2022, the VWAP of the
Company’s ordinary Shares over the five trading days ending on July
1, 2021;
for the period of July 1, 2022 to August 1, 2022, the VWAP over the
five trading days ending on April 1, 2022; and
for each period of July 1 to June 30 within the period of August 2, 2022
to August 20, 2024, the VWAP over the 30 trading days prior to April 1
of the year of the relevant July commencement month.
Each Director may opt-in or opt-out of the Voluntary Component of the
Salary Sacrifice Offer in accordance with the terms of the Salary Sacrifice
Offer (such opt-in period being, the Opt-in Period). The Opt-in Period for
newly appointed Directors may occur at a different time than those for
existing Directors.
The Opt-in Period specified in a Salary Sacrifice Offer must expire no later
than: (i) 60 days after the commencement of the Transition Year or the
Following Year (as applicable); and (ii) for newly appointed Directors, 90 days
after their commencing office.
UNLEASH POTENTIAL
41
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Timing of grants of Rights
The timing of the grant of Rights is as follows:
• Following the closing of the Opt-in Period for each Director or, where
the grant of Rights to a Director is subject to receipt of shareholder
approval, the date of the Company’s general meeting which approves
the grant of the Rights to that Director.
Structure of Rights
The structure of the Rights is as follows:
• Rights have a 12-month vesting period (i.e., will vest at the end of the
12-month contribution period) subject to meeting a defined service
condition; and
• Rights convert automatically to restricted or unrestricted Securities
(per the Director’s election) at the vesting date.
Restriction period on Shares
Shares allocated on vesting of Rights will be subject to trading restrictions
on dealing.
Exceptions to trading restrictions
Retirement and cessation of
employment
Dividends, capital returns and
voting rights
The restriction period will be until the earlier of:
•
•
the restriction period nominated by the Director (which may be up
to 15 years from the grant date for the Rights); or
the date the participant ceases to hold office as a Director.
The Board may exercise its discretion to release all or part of the restricted
Shares on a case-by-case basis in exceptional circumstances (for example,
demonstrated financial or personal hardship or other extenuating
circumstances).
If a Director ceases office, then unvested Rights vest (pro-rated for time up
to the date of cessation of office) and are automatically exercised on the date
of cessation. The remaining unvested Rights immediately lapse on cessation
of office.
Rights do not carry dividend or voting entitlements. However, as Shares issued
or transferred on the vesting of the Rights have been ‘earned’, participants
will be immediately entitled to any dividends and capital returns paid on the
Shares and to exercise voting rights attached to any Shares allocated.
UNLEASH POTENTIAL
42
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
The relative proportions of remuneration, earned by Executive Directors and KMP during FY23, that are linked to
performance and those that are fixed are as follows:
Name
Fixed rem At risk - STI At risk - LTI
Fixed rem*
STI
LTI
Salary
Sacrifice
Total
Directors
Adir
Shiffman
63%
37%
N/A
205,998
120,859
-
Other Key Management Personnel
Will
Lopes
Hayden
Stockdale
62%
29%
9%
517,480
243,035
80,492
61%
21%
18%
291,966
101,652
86,969
-
-
-
326,857
841,007
480,587
*Fixed rem includes base salary plus other employment benefits including long service leave, health insurance and pension
contributions
For FY23, short and long-term incentives were provided exclusively by way of Rights, other than for the Executive
Chairman’s at-risk STI component, which was provided by way of cash. The percentages disclosed reflect the
valuation of remuneration consisting of Rights, based on the value of Rights expensed during the year.
Service agreements
Remuneration and other terms of employment for the Executive Directors and other Key Management Personnel
are formalized in a Service Agreement. The major provisions of agreements with persons occupying such roles as at
March 31, 2023 and which relate to remuneration are set out below:
Name
Position
Base Salary Term of Agreement
Duration of
Agreement
Notice Period
Adir Shiffman
Executive Chairman
205,998
Will Lopes
Chief Executive Officer
450,000
Hayden Stockdale
Chief Financial Officer
274,664
Contract
Permanent
Permanent
-
-
-
1 month
6 months
6 months
UNLEASH POTENTIAL
43
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Details of remuneration
Details of the nature and amount of each element of the remuneration of each KMP of Catapult Group
International Ltd are shown in the table below:
Director and Other Key Management Personnel Remuneration
Year
Short-term employee benefits
Post-
employment
benefits
Long-
term
benefits
Share-based payments
(Option and Performance
Rights)
Total
Performance-
based
percentage of
remuneration
Cash salary
and fees
Bonus Other (i)
Pension
Long
service
leave
STI
LTI
Salary
Sacrifice
$
$
$
$
$
$
$
$
$
%
Executive Directors
Adir Shiffman
2023
205,998
120,859
Executive Chairman
2022
221,822
101,580
Non-Executive Directors
Shaun Holthouse
James Orlando
Igor van de Griendt
Michelle Guthrie
Thomas Bogan
Will Lopes
Chief Executive
Officer (CEO)
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
62,212
67,295
62,212
78,499
62,212
67,295
46,606
41,807
-
67,779
2023
450,000
2022
450,000
Hayden Stockdale (ii)
Chief Financial Officer
(CFO)
2023
274,664
2022
295,763
Matt Bairos (iii)
Chief Commercial
Officer (CCO)
2023
-
2022
167,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
326,857
36.98%
323,402
31.41%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,454
6,645
6,454
7,765
6,454
6,645
4,894
4,084
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
68,666
73,940
-
26,664
95,330
-
-
-
-
-
-
-
12,703
98,968
-
-
68,666
73,940
36,558
88,058
34,935
80,825
130,740
130,740
60,344
128,123
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
60,103
7,377
- 243,035
80,492
5,573
9,000
- 409,054 335,986
(2,145)
17,071
2,376
101,652
86,969
10,109
17,080
392
162,638
119,848
-
-
16,085
10,400
-
-
-
-
77,209
77,383
-
-
-
-
-
-
841,007
38.47%
1,209,613
61.59%
480,587
39.25%
605,830
46.63%
-
-
348,577
44.35%
2023 Total
2022 Total
1,163,904
120,859
57,958
48,704
2,376 344,687
167,461
193,962
2,099,911
30.14%
1,457,760
101,580
31,767
61,619
392 648,901
533,217
107,982
2,943,218
43.62%
All 2023 amounts translated from Australian Dollars to United States Dollars at an average exchange rate for the year ended March 31, 2023 of
0.6867.
All 2022 amounts translated from Australian Dollars to United States Dollars at an average exchange rate for the year ended March 31, 2022 of
0.7394.
(i) Other remuneration includes annual leave and company benefits such as health insurance.
(ii)
Bob Cruickshank was appointed as Chief Financial Officer of the group effective April 3, 2023, Hayden Stockdale transitions out of the role as
of May 31, 2023. The Directors have resolved to grant Hayden Stockdale “good leaver” status and accordingly Hayden will receive all
outstanding share awards, which will result in an additional expense of $143k which will be recognised in the period from April 1, 2023 to May
31,2023.
(iii) Matt Bairos changed roles on October 1, 2021 and is no longer considered to be a KMP from this date
UNLEASH POTENTIAL
44
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Share-based remuneration
All options refer to options over ordinary shares of the Company, which are exercisable on a one-for-one basis under
the terms of the agreements. All options remain subject to review and approval by the Nomination and
Remuneration Committee and Board.
Options
Role
Opening Balance
Will Lopes
CEO
1,762,462
Hayden
Stockdale
CFO
James Orlando
NED
453,071
611,112
Granted
during the
year
Exercised
during the
year
-
-
-
-
-
-
Performance
Rights
Role
Opening Balance
Granted
during the
year
Exercised
during the
year
Will Lopes
CEO
574,910
516,500
(392,410)
Hayden
Stockdale
CFO
389,860
282,800
(253,660)
James Orlando
NED
16,691
32,722
Michelle Lee
Guthrie
NED
Thomas Bogan
NED
Options vesting schedule
45,901
79,285
-
-
16,361
163,612
(79,285)
Forfeited
during the
year
(557,105)
(78,071)
-
Forfeited
during the
year
Lapsed during
the year
-
-
-
Closing
Balance
1,205,357
375,000
611,112
Vested
during the
year
-
-
-
Lapsed during
the year
Closing
Balance
Vested
during the
year
-
-
-
-
-
-
-
-
-
-
699,000
392,410
419,000
164,504
49,413
16,691
62,262
163,612
45,901
79,285
Options
Role
Balance
held at
March 31,
2023
Will Lopes
CEO
1,205,357
CFO
375,000
Hayden
Stockdale
James
Orlando
Vesting
Date
May 31,
2023
May 31,
2023
Expiry
Date
May 31,
2025
May 31,
2025
Value per
Option/Right
at Grant
Date
Value per
Option/Righ
t at Grant
Date
Total
Value of
Option/
Right at
Grant
Date
Total
Value of
Option/
Right at
Grant
Date
Exercise
price per
option
(AUD)
(USD)
(AUD)
(USD)
(AUD)
Grant Date
$0.75
$0.55
904,018
662,946
$1.30
$0.75
$0.55
281,250
206,250
$1.30
September
14, 2020
September
14, 2020
November
27, 2019
NED
611,112
Mar 25,
2020
Mar 24,
2024
$1.37
$0.93
838,201
568,735
$0.78
UNLEASH POTENTIAL
45
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Performance rights vesting schedule
Performance
Rights
Role
Balance held
at March 31,
2023
Vesting Date
Expiry Date
Value per
Option/Right at
Grant Date
(AUD)
Value per
Option/Right at
Grant Date
(USD)
Total Value of
Option/Right at
Grant Date
(AUD)
Total Value of
Option/Right at
Grant Date
(USD)
Exercise price per
option (AUD)
182,500
June 30, 2024 June 30, 2025
CEO
273,500
June 30, 2023 June 30, 2024
243,000
June 30, 2025 June 30, 2026
136,200
June 30, 2024 June 30, 2025
CFO
112,200
June 30, 2023 June 30, 2024
170,600
June 30, 2025 June 30, 2026
NED
16,691
June 30, 2022 June 30, 2023
32,722
June 30, 2023 June 30, 2024
$1.99
$1.00
$1.00
$1.99
$1.00
$1.00
$1.93
$1.00
$1.49
363,175
271,925
$0.70
273,500
191,450
$0.70
243,000
170,100
$1.49
271,038
202,938
$0.70
112,200
78,540
$0.70
170,600
119,420
$1.39
32,214
23,200
$0.69
32,722
22,578
NED
163,612
June 30, 2023 June 30, 2024
$1.00
$0.69
163,612
112,892
45,901
June 30, 2022 June 30, 2023
NED
16,361
June 30, 2023 June 30, 2024
$1.93
$1.00
$1.39
88,589
63,802
$0.69
16,361
11,289
Will Lopes
Hayden
Stockdale*
James
Orlando
Thomas
Bogan
Michelle
Guthrie
*
Vesting date for Hayden Stockdale has been modified to May 31, 2023 for all performance rights granted.
Details of shareholdings
-
-
-
-
-
-
-
-
-
-
-
The movement during the year in the number of ordinary shares held directly, indirectly or beneficially, for each of
the board members and KMPs, including their related parties, is as follows:
Held at
April 1, 2022
Received on exercise
of options/ rights
Purchased or (sold)
during the period
Net change other
Name
Adir Shiffman
Shaun Holthouse
6,042,100
17,675,000
Igor van de Griendt
20,508,000
James Orlando
(a)
Michelle Guthrie
Thomas Bogan
Will Lopes
Hayden Stockdale
234,412
420,660
525,825
225,731
-
-
-
-
-
-
79,285
392,410
253,660
-
-
-
-
-
(30,954)
(112,798)
30,000
(b)
-
-
-
-
-
-
-
-
Held at
March 31, 2023
6,042,100
17,675,000
20,508,000
234,412
420,660
574,156
505,343
283,660
(a) James Orlando holds a relevant interest in 80,000 shares by way of his relationship with Kimberly Ann Foltz.
(b) Hayden Stockdale holds a relevant interest in 30,000 shares by way of his interest in a private pension fund.
UNLEASH POTENTIAL
46
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
REMUNERATION REPORT (AUDITED)
Other transactions and balances with KMP and their related parties
(i) Details and terms and conditions of other transactions with KMP and their related parties:
Operating expenses
➔ During FY23, the Company spent US$30,955 (FY22: US$45,285) with Workday Group’s Adaptive Insights Pty
Ltd to integrate Adaptive Insights’ budgeting and forecasting software within its finance division, which
delivers automation and efficiency. Mr. Thomas F. Bogan is a director of Workday Group.
➔ During FY22, the Company worked with SXIQ Digital Pty Ltd and spent US$88,139 on order-to-cash process
design and implementation on a group level. Prior to joining Catapult Sports, Mr. Hayden Stockdale worked
as the CFO of SXIQ Digital Pty Ltd.
(ii) Amounts recognized at the reporting date in relation to other transactions:
Operating expenses
Professional fees
Year ended
Year ended
March 31, 2023
March 31, 2022
US$
30,955
US$
133,424
UNLEASH POTENTIAL
47
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONSOLIDATED STATEMENT OF PROFIT AND
LOSS AND OTHER COMPREHENSIVE INCOME
Revenue
Other income
Cost of goods sold
Employee benefits expense
Employee share-based payment expense
Capital raising and listing expenses
Travel, marketing and promotion
Occupancy
Professional fees
Other expenses
Operating loss before depreciation and amortization
Depreciation and amortization
Loss from operations
Finance costs
Finance income
Other financial items
Loss before income tax benefit
Income tax (expense)/benefit
Loss after income tax (expense)/benefit for the year
Loss per share
Basic and diluted loss per share (US$ cents per share)
Note
7
8
9
20.1
20.1
38
13&15
23
23
24
25
27
2023
US$'000
84,360
2022
US$'000
77,013
1,186
1,761
(20,534)
(44,173)
(12,103)
(116)
(6,132)
(1,090)
(4,473)
(7,940)
(11,015)
(20,596)
(31,611)
(887)
52
983
(31,463)
(21)
(31,484)
(19,607)
(41,342)
(13,592)
(177)
(5,705)
(874)
(3,742)
(8,005)
(14,270)
(18,581)
(32,851)
(200)
18
(595)
(33,628)
1,441
(32,187)
(13.4)
(14.8)
This statement should be read in conjunction with the notes to the financial statements.
UNLEASH POTENTIAL
48
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONSOLIDATED STATEMENT OF PROFIT AND
LOSS AND OTHER COMPREHENSIVE INCOME
Loss for the year from continuing operations
Other comprehensive (loss)/income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences for foreign operations, net of
tax
Hyperinflation reserve movement
Other comprehensive (loss)/income for the year, net of tax
Total comprehensive loss for the year attributable to the owners of
Catapult Group International Ltd and non-controlling interests
Loss for the year is attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive loss for the year is attributable to:
Members of the parent entity
Non-controlling interest
This statement should be read in conjunction with the notes to the financial statements.
2023
US$'000
2022
US$'000
(31,484)
(32,187)
(2,824)
(493)
(3,317)
272
-
272
(34,801)
(31,915)
(31,461)
(23)
(31,484)
(34,783)
(18)
(34,801)
(32,091)
(96)
(32,187)
(31,823)
(92)
(31,915)
UNLEASH POTENTIAL
49
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
March 31, 2023
US$'000
March 31, 2022
US$'000
Note
10
11
12
11
13
14
15
16
17
18
18
20.3
22.1
18
18
19.2
20.3
16
22.1
21
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
Non-current assets
Trade and other receivables
Property, plant and equipment
Goodwill
Intangible assets
Deferred tax assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Other liabilities
Employee benefits
Other financial liabilities
Total current liabilities
Non-current liabilities
Contract liabilities
Other liabilities
Borrowings
Employee benefits
Deferred tax liabilities
Other financial liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Share option reserve
Foreign currency translation reserve
Other reserves
Accumulated losses
Equity attributable to the owners of Catapult Group
International Ltd
Non-controlling interest
Total equity
16,225
16,092
2,243
34,560
520
21,209
51,372
48,764
6,621
128,486
163,046
9,238
28,158
2,568
5,977
1,931
47,872
3,289
271
15,747
158
7,732
1,899
29,096
76,968
86,078
194,836
14,781
(4,870)
1,471
(119,993)
86,225
(147)
86,078
26,108
17,901
2,990
46,999
329
15,606
51,806
48,338
7,893
123,972
170,971
9,875
25,385
2,455
7,153
2,040
46,908
4,553
1,225
-
133
7,734
837
14,482
61,390
109,581
175,523
17,709
(2,041)
7,051
(88,527)
109,715
(134)
109,581
This statement should be read in conjunction with the notes to the financial statements.
UNLEASH POTENTIAL
50
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
Foreign
Currency
Translation
Reserves
US$'000
(2,309)
Other
Reserves
US$'000
-
Accumulated
Losses
US$'000
(56,436)
Non-
Controlling
Interests
US$'000
(42)
Total equity
US$'000
76,925
Share
Capital
US$'000
130,452
Share Option
Reserve
US$'000
5,260
-
-
-
43,824
1,247
-
-
-
-
-
-
-
12,449
-
-
-
45,071
12,449
-
-
-
-
-
-
4,766
7,337
-
-
14,547
(10,265)
-
-
175,523
17,709
(2,041)
Share
Capital
US$'000
175,523
Share Option
Reserve
US$'000
17,709
Foreign
Currency
Translation
Reserves
US$'000
(2,041)
-
268
268
-
-
-
-
-
-
-
-
-
-
-
1,733
5,352
(34)
7,051
7,051
(32,091)
(96)
(32,187)
-
4
272
(32,091)
(92)
(31,915)
-
-
-
-
-
-
-
-
-
-
-
-
43,824
13,696
1,733
5,352
(34)
64,571
(88,527)
(134)
109,581
Other
Reserves
US$'000
7,051
Accumulated
Losses
US$'000
(88,527)
Non-
Controlling
Interests
US$'000
(134)
Total equity
US$'000
109,581
-
-
(31,461)
(23)
(31,484)
(2,829)
(493)
-
5
(3,317)
(2,829)
(493)
(31,461)
(18)
(34,801)
-
-
-
-
-
(805)
(4,282)
-
-
-
-
(5)
(5)
-
-
-
5
5
12,103
(805)
-
-
11,298
Balance as at April 1, 2021
Loss after income tax
benefit for the year
Other comprehensive loss
for the year, net of tax
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Contributions of equity,
net of transaction costs
Share-based payments
Treasury shares tax
impact (i)
Deferred consideration on
acquisition (ii)
Hyperinflation reserve
Total transactions with
owners
Balance as at March 31,
2022
Balance as at April 1, 2022
Loss after income tax
expense for the year
Other comprehensive loss
for the year, net of tax
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Share-based payments
Treasury shares tax
impact (i)
Deferred consideration on
acquisition (ii)
Acquisition of non-
controlling interest
Total transactions with
owners
Balance as at March 31,
2023
19,313
(2,928)
-
(5,087)
194,836
14,781
(4,870)
1,471
(119,993)
(147)
86,078
(i)
A tax benefit of $928k (FY22: $1,733k) was recognized in other reserves for income tax benefits relating to contributions to the Employee Share
Trust in excess of the associated cumulative remuneration expense.
(ii) See Note 36 for further information on the SBG acquisition.
This statement should be read in conjunction with the notes to the financial statements.
UNLEASH POTENTIAL
51
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
Cash receipts from customers
Cash paid to suppliers and employees
Cash generated from operations
Interest received
Government grants and other income
Income taxes received/(paid)
Note
2023
US$'000
2022
US$'000
91,785
(88,578)
84,540
(81,936)
3,207
2,604
52
191
284
18
253
(202)
Net cash flows from operating activities
29
3,734
2,673
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired
Payments for property, plant and equipment
Payments for intangibles
Net cash used in investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Transaction costs on issue of shares
Loans received – net of transaction costs paid
Repayments of leasing liabilities
Interest paid
Proceeds from share options
Net cash from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial year
(28)
(8,954)
(16,297)
(19,303)
(7,026)
(13,526)
(25,279)
(39,855)
-
-
15,636
(1,972)
(476)
-
44,781
(1,365)
-
(1,852)
(171)
149
13,188
41,542
(8,357)
26,108
(1,526)
4,360
22,171
(423)
16,225
26,108
21
10
10
This statement should be read in conjunction with the notes to the financial statements.
UNLEASH POTENTIAL
52
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. NATURE OF OPERATIONS
Catapult Group International Ltd and its controlled entities (the ‘Group’ or the ‘Company’) principal activities are the
development and supply of innovative technologies that improve the performance of athletes and sports teams. This
includes the development and sale of performance and health technology solutions, including wearable tracking and
analytics, to elite sporting teams, leagues and associations; the development and sale of tactical and coaching
technology solutions, including digital video and analytics, to elite sporting teams, leagues and associations; the
development and sale of performance and health technology solutions, including wearable tracking and analytics, to
prosumer athletes, sporting teams and associations; the development and sale of an athlete management platform
and analytics to elite sporting teams, leagues and associations; and the development and growth of a subscription
online sport learning platform.
NOTE 2. GENERAL INFORMATION AND BASIS OF PREPARATION
The consolidated general-purpose financial statements of the Group have been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. Compliance with Australian Accounting Standards
results in full compliance with the International Financial Reporting Standards (‘IFRS’) as issued by the International
Accounting Standards Board (IASB). Catapult Group International Ltd is a for-profit entity for the purpose of
preparing the financial statements.
Catapult Group International Ltd is the Group’s Ultimate Parent Company. Catapult Group International Ltd is a
Public Company incorporated and domiciled in Australia and listed on the Australian Securities Exchange. The address
of its registered office and its principal place of business is 75 High Street, Prahran, Victoria, Australia.
The consolidated financial statements for the financial year ended March 31, 2023, were approved by the Board of
Directors and authorized for issue on May 22, 2023.
Going concern
The report has been prepared on the going concern basis of accounting, which contemplates continuity of normal
business and the realization of assets and settlement of liabilities in the ordinary course of business.
As at March 31, 2023, the Group had $86,078k of consolidated net assets (FY22: $109,581k), and for the 12 months
ended that date, derived a loss after tax of $31,484k (FY22: loss of $32,187k) and had net cash inflows from operations
of $3,734k (FY22: $2,673k net cash inflows from operations). The amount of salaries, wages and other costs capitalized
to intangible assets were $16,297k for the period (FY22: $13,526k), which are presented as cash outflows from investing
activities.
The Group had a current asset deficit of $13,312k (FY22: surplus $91k). Current liabilities include contract liabilities of
$28,158k (FY22: $25,385k) which are expected to release into revenue within 12 months. Current contract liabilities are
expected to be delivered over the next 12 months; therefore, no actual cash outflows are expected other than those
required to pay costs associated with delivering the service.
The Group has continued to secure sales to many leading sporting organizations across the world for which revenue
and cash inflows will be recognized in future periods. The execution of the Board approved FY24 budget, including sales
plans, is central to the Directors’ application of the going concern principle. Should it be required, Management could
reduce variable and fixed expenditure.
The Group confirmed the finalization and execution of documentation for an upsized US$20,000k debt facility with
Western Alliance Bank during December 2022. The multi-year facility has improved commercial terms compared to
the previous facility and has a maturity date of December 27, 2024. As a result, at the reporting date, the borrowings
are presented as non-current liabilities at period end.
As disclosed at Note 19.2, the Group drew down funds of $15,747k from the debt facility during the period. The Group
expects the funds drawn down from Western Alliance Bank to be sufficient for all its working capital needs for the
ensuing 12 months from the date of this report. Subsequent to March 31, 2023, the group has fully drawn down the
remainder of the facility to $20,000k. Management has fully drawn down the debt facility in excess of current working
UNLEASH POTENTIAL
53
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. GENERAL INFORMATION AND BASIS OF PREPARATION (CONTINUED)
capital needs as a risk mitigant against any adverse effect from the US banking crisis that has occurred since March
2023. Refer to the “Economic Risk” section of the Directors’ Report for potential risks associated with the recent US
regional bank crisis.
The Group has to date complied with the annually reset covenant requirements (trailing 3-month adjusted EBITDA
covenant) required under both the previous and current debt facilities and Management forecast compliance with the
covenant requirements as agreed on 10 May 2023 (refer Note 19.2) through the 12 months from the date of this report.
The Group continues to be well positioned with $16,225k of cash and cash equivalents at March 31, 2023.
The Group expects to be free cashflow positive for FY24. 2
The Group also periodically reviews its capital management strategy to ensure funding initiatives are in place to
support medium-term growth objectives.
Accordingly, the Directors are of the view that the going concern principle is appropriate.
NOTE 3. CHANGES TO REPORTING ACCOUNTING POLICIES
A number of new accounting standards, amendments to standards and interpretations have also been issued and will
be applicable in future periods. While these remain subject to ongoing assessment, no significant impacts on the
financial statements of the Group have been identified to date. These standards have not been applied in the
preparation of these Financial Statements.
3.1 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the Group’s annual consolidated financial statements are
consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year
ended March 31, 2022, except for the adoption of new standards effective as of April 1, 2022. The Group has not early
adopted any standard, interpretation or amendment that has been issued but is not yet effective. Several
amendments apply for the first time in 2023 but do not have a significant impact on the Group’s annual consolidated
financial statements.
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation
The consolidated financial report has been prepared using the significant accounting policies and measurement bases
summarized below.
4.1 Overall considerations
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or
loss and other comprehensive income, statement of financial position and statement of changes in equity of the
consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest in full,
even if that results in a deficit balance.
4.2 Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of March 31,
2023. The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the
subsidiary and could affect those returns through its power over the subsidiary. All subsidiaries have a financial year-
end reporting date of March 31 and are included in the consolidated financial statements of the Group at this date.
Catapult Sports Technology Beijing Co Ltd (based in China) reports its local financial statements on December 31.
2 Free cash flow is defined as net cash from operations minus net cash used in investing activities. This is a non-IFRS number and is unaudited.
UNLEASH POTENTIAL
54
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
All transactions and balances between Group companies are eliminated on consolidation, including unrealized gains
and losses on transactions between Group companies. Where unrealized losses on intra-group asset sales are reversed
on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in
the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the
accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year is recognized
from the date when the control is obtained, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net
assets that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between
the owners of the parent and the non-controlling interests based on their respective ownership interests.
4.3 Business combination
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by
the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets
transferred, liabilities incurred, and the equity interests issued by the Group, which includes the fair value of any asset
or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
Consideration to the seller, subject to their continued employment, is recognized separately as an expense during the
period the service is provided.
The Group recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of
whether they have been previously recognized in the acquiree’s financial statements prior to the acquisition. Assets
acquired and liabilities assumed are generally measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum
of (a) the fair value of consideration transferred, (b) the recognized amount of any non-controlling interest in the
acquiree, and (c) the acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-
date fair values of identifiable net assets. If the fair value of the net assets acquired is in excess of the aggregate
consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all
of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition
date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in profit or loss.
4.4 Foreign currency translation
Presentation currency
The presentation currency of the Group is US Dollars, and the functional currency of the parent entity is in Australian
Dollars.
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency of the respective Group entity, using the
exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses
resulting from the settlement of such transactions and from the re-measurement of monetary items at year end
exchange rates are recognized in profit or loss.
Non-monetary items are not re-translated at period-end and are measured at historical cost (translated using the
exchange rates at the date of the transaction), except for non-monetary items measured at fair value which are
translated using the exchange rates at the date when fair value was determined.
UNLEASH POTENTIAL
55
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.4 Foreign currency translation (continued)
Foreign operations
In the Group’s financial statements, all assets, liabilities, and transactions of Group entities with a functional currency
other than the US dollar are translated into the US dollar upon consolidation. The functional currency of the entities
in the Group has remained unchanged during the reporting period.
On consolidation, assets and liabilities have been translated into the US dollar at the closing rate at the reporting date.
Under this method, the consolidated statement of profit or loss and other comprehensive income and consolidated
statement of cash flows for each year and period have been translated into the presentational currency using the
average exchange rates prevailing during each reporting period (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated
at the dates of the transaction). Exchange differences are charged or credited to other comprehensive income and
recognized in the foreign currency translation reserve in equity. On disposal of a foreign operation the cumulative
translation differences recognized in equity are reclassified to profit or loss and recognized as part of the gain or loss
on disposal.
4.5 Revenue
Revenue arises from the sale of goods and the rendering of services. It is measured by reference to the fair value of
consideration the Group is entitled to, excluding sales taxes, rebates, and trade discounts.
The Group enters into sales transactions involving an outright sale to the client, on a subscription basis or for the
rendering of services. The Group applies the revenue recognition criteria set out below to each separately identifiable
component of the sales transaction in order to reflect the substance of the transaction.
To determine whether to recognize revenue, the Group follows a five-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied
When the Group enters into transactions involving its products and services, the total transaction price for a contract
is allocated amongst the various performance obligations. Revenue is recognized either at a point in time or over time,
when the Group satisfies performance obligations by transferring the promised goods or services to customers.
Subscription - Software as a Service
Subscription revenue comprises the recurring monthly recognition of revenue from wearables subscription sales,
rendering of software services and content licensing. Unbilled revenue at the period end is recognized in the
Consolidated Statement of Financial Position as contract assets and included within trade and other receivables.
Unearned revenue at the period end is recognized in the Consolidated Statement of Financial Position as deferred
revenue and included within contract liabilities.
Revenue is recognized as performance obligations under customer contracts are met. Performance obligations consist
of the provisioning of the software/cloud/SaaS subscription and related maintenance and support services over the
term of the contract.
(i) Wearables subscription sale
The Group provides access to its software under subscription agreements which are referred to as Software as a
Service (SaaS) revenue, and is recognized on a straight-line basis over the contract period. To enable its customers to
access the software platform offered by the Group, customers are provided with hardware devices. The Group has
UNLEASH POTENTIAL
56
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.5 Revenue (continued)
determined that Catapult's customers do not have the right to direct the use of Catapult's hardware devices. Due to
the interdependency between the software services and the hardware devices, the Company considers these revenue
transactions to form part of a single performance obligation. These contracts are therefore accounted for as service
contracts. There are no variable consideration terms within the contracts.
These hardware units enable customers to access the software platform offered by the Group. The transactions
involving hardware and accessories do not convey a distinct good or service. The provision of hardware does not
transfer control to the customer as the Group provides a significant service of integrating the software service to
produce a combined output. The provision of the hardware, accessories and software services is referred to as
Software as a Service (SaaS) revenue, which is recognized on a straight-line basis over the contract period.
The Group’s continual assessment of and review relating to the subscription agreements continues to indicate that
the subscription agreements do not contain a lease component.
(ii) Rendering of services
The Group is involved in providing software, support and maintenance services. The Group recognizes revenue from
such activities on a monthly basis in equal amounts for each month of the subscription agreement.
(iii) Content licensing
The Group is involved in the provision of licensed video content to customers. Where video content is purchased on a
one-off basis, associated revenue is recognized upon delivery of the licensed content. Where video content is purchased
via a term contract with content available for consumption during the contract term, associated revenue is recognized
on a monthly basis in equal amounts for each month of the content licensing agreement.
(iv) Multiple element contracts
The Group may enter into a contract or multiple contracts with customers that may include multiple performance
obligations. Where multiple contracts are entered into, the Group determines whether it is required to be measured
with another pre-existing contract by determining whether the performance obligations promised are being sold at
their stand-alone selling price (‘SASP’). Where pricing is equal to SASP, the contract is treated as a stand-alone
contract. Where pricing is not equal to SASP, the contract is combined with the pre-existing contract with the
customer as a multiple-performance obligation (multi-PO) arrangement. Where a multi-PO arrangement is entered
into, each performance obligation is allocated a proportional amount of revenue based on the transaction price of the
contract and the relative SASP of each performance obligation. Included in subscription revenue are additional revenue
items related to the media revenue. Revenue is recognized either at a point in time or over time, when the Group
satisfies performance obligations by transferring the promised goods or services to customers.
Capital goods
Capital revenue is the sale of goods to third parties and is recognized at a point in time when the Group has transferred
to the buyer the significant risks and rewards of ownership, and control of the goods. The timing of the transfer of
risks and rewards/control varies depending on the individual terms of the sales agreement. For sales of wearable units
and sale of hardware in the video analytics business the transfer usually occurs once the software account has been
activated. Included in capital revenue are also additional revenue items related to the sale of hardware, training and
installation revenue. Revenue is recognized at a point in time when the Group satisfies performance obligations by
transferring the promised goods or services to customers.
Significant financing component
In assessing the transaction price for the sale of its subscription products, the Group considers the existence of a
significant financing component. From time to time, the Group receives payments from customers for 2-3 years in
advance of the performance obligation being satisfied. Subject to the assessment of a customer’s geographic and
individual credit risk, analysis of specific contract pricing relative to similar customer segments for short-term
contracts, and materiality to the overall sales contract, there may be a significant financing component for these
contracts considering the length of time between the customer’s payment and the satisfaction of the performance
UNLEASH POTENTIAL
57
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.5 Revenue (continued)
obligation, as well as the prevailing interest rate in the market. As such, where a significant financing component is
identified, the transaction price is discounted using the interest rate implicit in the contract. For the year ending March
31, 2023, there is a significant financing component that the Group recognized as a finance cost when the
consideration is received in advance.
Finance income
Interest income and expenses are reported on an accrual basis using the effective interest method. Dividends, other
than those from investments in associates, are recognized at the time the right to receive payment is established.
4.6 Operating expenses
Operating expenses are recognized in profit or loss upon utilization of the service or at the date of their origin.
4.7 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized
during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other
borrowing costs are expensed in the period in which they are incurred and reported in finance costs (see Note 23).
4.8 Goodwill
Goodwill represents the future economic benefits arising from a business combination that are not individually
identified and separately recognized. See Note 4.3 for information on how goodwill is initially determined. Goodwill is
carried at cost less accumulated impairment losses. Refer to Note 14.1 for a description of impairment testing
procedures.
4.9 Other intangible assets
Acquired intangible assets
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and install the
specific software. Brand names and customer lists acquired in a business combination that qualify for separate
recognition are recognized as intangible assets at their fair values (see Note 4.3).
Internally developed software & hardware IP
Expenditure on the research phase of projects to develop new customized software and hardware IP for athlete
tracking and analytic analysis is recognized as an expense as incurred.
The development costs can be measured reliably;
The project is technically and commercially feasible;
The Group intends to and has sufficient resources to complete the project;
Costs that are directly attributable to a project’s development phase are recognized as intangible assets, provided
they meet the following recognition requirements:
•
•
•
•
•
• Development costs not meeting these criteria for capitalization are expensed as incurred.
• Directly attributable costs include employee costs and costs incurred on software & hardware IP development.
Subsequent measurement
The software/hardware IP will generate probable future economic benefits.
The Group has the ability to use or sell the software/hardware IP; and
All intangible assets, including capitalized internally developed software and hardware IP, are accounted for using the
cost model whereby capitalized costs are amortized on a straight-line basis over their estimated useful lives, as these
assets are considered finite. Residual values and useful lives are reviewed at each reporting date. In addition, they are
subject to impairment testing as described in Note 4.12.
The following useful lives are applied:
UNLEASH POTENTIAL
58
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.9 Other intangible assets (continued)
• Software (licenses and internally developed): 3–9 years, except with regard to identified projects with 2 years
• Brand names: 2–5 years
• Customer lists: 7–10 years
• Hardware IP: 3 years
• Distributor relationships: 10 years
• Distributor contracts: 10 years
• Goodwill: annually assessed by management for impairment.
4.10 Property, plant and equipment
Plant and office equipment and fixtures and fittings are initially recognized at acquisition cost or manufacturing cost,
including any costs directly attributable to bringing the assets to the location and condition necessary for it to be
capable of operating in the manner intended by the Group’s management. Plant and office equipment as well as
fixtures and fittings are subsequently measured using the cost model, cost less subsequent depreciation and
impairment losses.
The following useful lives are applied:
• Plant and office equipment: 2-20 years
• Subscription & demo units: 4 years
• Fixture and fittings: life of lease
• Property improvements: life of lease
• Right-of-use assets: life of lease
Depreciation is recognized on a straight-line basis to write down the cost less estimated residual value of subscription,
service, demonstration wearable units and plant and office equipment over their useful life. In the case of leasehold
property, expected useful lives are determined by reference to comparable owned assets or over the term of the lease,
if shorter.
Material residual value estimates and estimates of useful life are updated as required, but at least annually.
Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between
the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss within other income
or other expenses.
4.11 Leased assets
Short–term and low value leases
The Group has elected not to recognize a lease liability for short-term leases (leases with an expected term of 12
months or less) or for leases of low value assets. Payments made under such leases are expensed as incurred. In
addition, certain variable lease payments are not permitted to be recognized as lease liabilities and are expensed as
incurred (see Note 22). Associated costs, such as maintenance and insurance, are expensed as incurred.
4.12 Impairment testing of goodwill, intangible assets, property, plant and equipment and right-of-use assets
For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent
cash inflows (cash-generating units). Goodwill is allocated to those group of cash-generating unit (CGU) that are
expected to benefit from synergies of the related business combination and represent the lowest level within the
Group at which management monitors goodwill.
UNLEASH POTENTIAL
59
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.12 Impairment testing of goodwill, intangible assets, property, plant and equipment and right-of-use assets
(continued)
CGUs to which goodwill has been allocated (determined by the Group’s management as equivalent, or at a lower level,
to its operating segments) are tested for impairment at least annually. CGUs are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the CGU’s carrying amount exceeds its recoverable amount,
which is the higher of fair value less costs of disposal. To determine the value-in-use, management estimates expected
future cash flows from each CGU and determines a suitable discount rate in order to calculate the present value of
those cash flows. The data used for impairment testing procedures are directly linked to the Group’s latest approved
budget, adjusted as necessary to exclude the effects of future reorganizations and asset enhancements. Discount
factors are determined individually for each CGU and reflect management’s assessment of respective risk profiles,
such as market and asset-specific risks factors.
Impairment losses for CGUs reduce first the carrying amount of any goodwill allocated to the group of CGUs. Any
remaining impairment loss is charged across the other assets in the CGU to the extent that the charge does not reduce
the value of the assets below their recoverable amount. With the exception of goodwill, all assets are subsequently
reassessed for indications that an impairment loss previously recognized may no longer exist. An impairment charge
is reversed if the CGUs recoverable amount exceeds its carrying amount.
4.13 Financial instruments
Recognition, initial measurement and de-recognition
Financial assets, except trade receivables, are initially recognized at fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
component or for which the Group has applied the practical expedient are measured at the transaction price.
Financial liabilities are initially recognized at fair value minus, in the case of financial liabilities not at fair value through
profit or loss, transaction costs.
Financial assets are de-recognized when the contractual rights to the cash flows from the financial asset expire, or
when the financial asset and all substantial risks and rewards are transferred. A financial liability is de-recognized
when it is extinguished, discharged, cancelled or expires.
Subsequent measurement of financial assets and financial liabilities are described below.
Classification and Subsequent Measurement of Financial Assets
For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging
instruments are classified into the following categories upon initial recognition:
• Amortized cost;
• Financial assets at Fair Value Through Profit or Loss (‘FVTPL’);
• Financial assets reported through Other Comprehensive Income (‘FVOCI’);
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within
the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the
exposure, irrespective of the timing of the default (a lifetime ECL).
UNLEASH POTENTIAL
60
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.13 Financial instruments (continued)
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime
ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic environment. All income
and expenses relating to financial assets that are recognized in profit or loss are presented within finance costs,
finance income or other financial items, except for impairment of trade receivables which is presented within other
expenses.
Amortized cost
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. After initial recognition, these are measured at amortized cost using the effective interest (EIR)
method and are subject to impairment. Discounting is omitted where the effect of discounting is immaterial. The
Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.
Classification and subsequent measurement of Financial Liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments.
Financial liabilities are measured subsequently at amortized cost using the effective interest method, except for
financial liabilities held for trading or designated at FVTPL, that are carried subsequently at fair value with gains or
losses recognized in profit or loss. All derivative financial instruments that are not designated and effective as hedging
instruments are accounted for at FVTPL.
4.14 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost includes all expenses directly attributable to
the manufacturing process as well as suitable portions of related production overheads, based on normal operating
capacity. Costs of ordinarily interchangeable items are assigned using the first in, first out cost formula. Net realisable
value is the estimated selling price in the ordinary course of business, less any applicable selling expenses.
4.15 Income taxes
Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other
comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation
Office (‘ATO’) and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the
reporting date.
Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of
current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the
reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying
amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition
of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination
or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries
and joint ventures is not provided if reversal of these temporary differences can be controlled by the Group and it is
probable that reversal will not occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their
respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future
taxable income, based on the Group’s forecast of future operating results which is adjusted for significant non-taxable
UNLEASH POTENTIAL
61
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.15 Income taxes (continued)
income and expenses and specific limits to the use of any unused tax loss or credit. Deferred tax liabilities are always
provided for in full.
The carrying amount of recognized and unrecognized deferred tax assets, including deferred tax assets derived from
tax losses, are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no
longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously
unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits
available to recover the asset and convincing other evidence exists to this effect.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set
off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend
either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to
be settled or recovered.
Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss,
except where they relate to items that are recognized in other comprehensive income (such as the revaluation of land)
or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity,
respectively.
Catapult Group International Ltd and its wholly owned Australian controlled entities have formed a tax consolidated
group. Therefore, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities
are set off in the consolidated financial statements.
4.15 Income taxes
AASB Interpretation 23 requires the assessment of whether the effect of uncertainty over income tax treatments
should be included in the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits
and tax rates. The interpretation outlines the requirements to determine whether any entity considers uncertain tax
treatments separately, the assumptions an entity makes about the examination of tax treatments by taxation
authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and
tax rates and how an entity considers changes in facts and circumstances.
4.16 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid
investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of
changes in value.
4.17 Equity, reserves and dividend payments
Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the
issuing of shares are deducted from share capital, net of any related income tax benefits.
The tax effect of share-based payment awards granted is recognized in current income tax expense / (benefit), except
to the extent that the total tax deductions are expected to exceed the cumulative remuneration expense. In this
situation, the excess of the associated current or deferred tax is recognized in equity and forms part of the treasury
shares reserve.
Other components of equity include the following:
Foreign currency translation reserve – comprises foreign currency translation differences arising from the translation
of foreign operations whose functional currency is different from the Group’s presentation currency, USD (see Note
4.4).
Share option reserve – comprises the grant date fair value of options issued but not exercised.
UNLEASH POTENTIAL
62
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.17 Equity, reserves and dividend payments (continued)
Other reserve – comprises of deferred considerations in relation to SBG acquisition and hyperinflation (see Note 4.23).
Retained earnings - include all current and prior period retained profits. Dividend distributions payable to equity
shareholders are included in other liabilities when the dividends have been approved in a general meeting prior to the
reporting date.
Treasury shares – The treasury reserve is used to hold the book value of shares held by the Employee Share Trust for
future issues to participants on exercise of options / restricted stock units. The tax effect of tax deductions for
contributions to the Employee Share Trust in excess of the associated cumulative remuneration expense is recorded
directly in equity and forms part of the treasury shares reserve. Amounts are transferred out of this reserve and into
accumulated losses when the relevant equity rights are converted into shares.
All transactions with owners of the parent are recorded separately within equity.
4.18 Post-employment benefits and short-term employee benefits
Post-employment Benefit Plans
The Group provides post-employment benefits through defined contribution plans.
Short-term Employee Benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly
within twelve (12) months after the end of the period in which the employees render the related service. Examples of
such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
4.19 Share-based employee remuneration
The Group operates equity-settled share-based remuneration plans for its employees. None of the Group’s plans
feature any options for employees to require a cash settlement.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values.
Where employees are rewarded using share-based payments, the fair values of employees’ services are determined
indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant
date and excludes the impact of non-market vesting conditions (for example performance conditions).
All share-based remuneration is ultimately recognized as an expense in profit or loss with a corresponding credit to
share option reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting
period, based on the best available estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the number of options that are expected to become
exercisable. Estimates are subsequently revised if there is any indication that the number of share options expected
to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognized in the current period.
No adjustment is made to any expense recognized in prior periods if share options ultimately exercised are different
to that estimated on vesting.
Upon exercise of share options, the proceeds received net of any directly attributable transaction costs are allocated
to share capital.
UNLEASH POTENTIAL
63
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.20 Provisions, contingent liabilities and contingent assets
Provisions for product warranties, legal disputes, onerous contracts or other claims are recognized when the Group
has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic
resources will be required from the Group and amounts can be estimated reliably. Timing or amount of the outflow
may still be uncertain.
No liability is recognized if an outflow of economic resources as a result of present obligation is not probable. Such
situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no disclosure
is required.
Restructuring provisions (when applicable) will only be recognized if a detailed formal plan for the restructuring has
been developed and implemented, or management has at least announced the plan’s main features to those affected
by it. Provisions are not recognized for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most
reliable evidence available at the reporting date, including the risks and uncertainties associated with the present
obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present
values, where the time value of money is material.
Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation
is recognized as a separate asset. However, this asset may not exceed the amount of the related provision.
4.21 Goods and Services Tax, Sales taxes and Value Added Tax (GST)
Revenues, expenses and assets are recognized net of the amount of GST, except where the amount of GST incurred
is not recoverable from the appropriate tax authority in the relevant tax jurisdiction. In these circumstances the GST
is recognized as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of investing
and financing activities, which are disclosed as operating cash flows.
4.22 Significant management judgement in applying accounting policies
When preparing the financial statements, management undertakes a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.
Significant management judgement
The following are significant management judgements in applying the accounting policies of the Group that have the
most significant effect on the financial statements.
Recognition of subscription revenue
Determining when to recognize revenues from subscription agreements requires an understanding of the customer’s
use and the useful life of the products, historical experience and knowledge of the market. The Group provides GPS
tracking units and other associated hardware items for team sports under a subscription model. Under this model,
the customer has the right to use the hardware units for the period of the subscription, however they must return the
hardware to the Group at the end of the subscription period, and the Group retains ownership and control of the
hardware throughout the subscription period.
All revenue under subscription sales is recognized on a straight-line basis over the term of the subscription period,
reflecting management’s best estimate of the delivery of services over the term of the agreements, and all
subscription hardware items are capitalized and recorded on the Company’s fixed asset register and depreciated over
the expected useful life of the assets.
UNLEASH POTENTIAL
64
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.22 Significant management judgement in applying accounting policies (continued)
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Group’s
future taxable income against which the deferred tax assets can be utilized, as described in Note 16. In addition,
significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax
jurisdictions.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set
off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend
either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to
be settled or recovered.
Comparative amounts in the Consolidated Statement of Financial Position have been reclassified for consistency.
Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement
of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.
Impairment
In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based
on expected future cash flows and uses a weighted average cost of capital to discount them. Estimation uncertainty
relates to assumptions about future operating results and the determination of a suitable discount rate (see Note
4.12).
Useful lives of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the
expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the
utility of certain software and IT equipment.
Inventories
Management estimates the net realizable values of inventories, taking into account the most reliable evidence
available at each reporting date. The future realization of these inventories may be affected by future technology or
other market-driven changes that may reduce future selling prices.
Business combinations
Management uses valuation techniques in determining the fair values of the various elements of a business
combination (see Note 4.3). Particularly, the fair value of contingent consideration is dependent on the outcome of
many variables that affect future profitability.
4.23 Hyperinflation
AASB 129 - Financial Reporting in Hyperinflationary economies, requires that the financial statements of entities
whose functional currency is that of a hyperinflationary economy to be adjusted for the effects of changes in a suitable
general price index and to be expressed in terms of the current unit of measurement at the closing date of the
reporting period. For the purposes of concluding on whether an economy is categorized as high inflation under AASB
129, the standard details a series of factors to consider, including a cumulative inflation rate over three years that is
close to or exceeds 100%. Inflation has increased significantly since early 2018 and the three-year cumulative inflation
rate has exceeded 100%. Since 2018, Argentina has been considered as a hyperinflationary economy.
UNLEASH POTENTIAL
65
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.23 Hyperinflation (continued)
In accordance with AASB 129, the financial statements of an entity that reports in the currency of a high inflation
economy must be reported in terms of the unit of measure in effect at the date of the financial statements. All
amounts in the statement of financial position that are not indicated in terms of the current unit of measure at the
date of the financial statements must be restated by applying a general price index. All the components of the income
statement must be indicated in terms of the unit of measurement updated at the date of the financial statements,
applying the change in the general price index that has occurred since the date on which the income and expenses
were originally recognized in financial statements.
The Argentine Securities Commission established that the series of indexes to be used in the AASB 129 application is
the one established by the Argentine Federation of Professional Councils in Economic Sciences.
The Group’s comparative balances and amounts were presented in a stable currency and therefore are not adjusted
for subsequent changes in the price level or exchange rates.
4.24 Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
UNLEASH POTENTIAL
66
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. INTERESTS IN SUBSIDIARIES
Set out below are details of the subsidiaries held directly by the Group:
Parent Entity
Catapult Group International Ltd (i),(iii)
Name of the Subsidiary**
Catapult Sports Pty Ltd (i),(ii),(iii)
Catapult Gameday Pty Ltd
Catapult International Pty Ltd (i),(ii)
GPSports Systems Pty Ltd (iii)
Catapult Innovations Pty Ltd
Catapult Group US Inc. (iii)
Catapult Sports LLC (iii)
Catapult Sports Inc (formerly XOS Technologies,
Inc.)
Collegiate Images LLC
Catapult Sports Limited (iii)
Catapult Sports Godo Kaisha
Catapult Sports Europe Limited
Catapult Sports EMEA Ltd (iii) (formerly
Kodaplay Limited)
Catapult Sports SAS
Catapult Sports Technology Beijing Co Ltd
Science for Sport Limited (iv)
SBG Sports Software Ltd*
SBG Sports Software UK Ltd*
Catapult Sports GmbH* (formerly SBG Sports
Software GmbH)
SBG Sports Software Inc*
Landmark Technology Services Limited*
Principal Place of Business /
Principal Activity
Australia - design and sale of wearable
products and software
Australia - trading entity for relationships
with Media sector
Australia - holding company
Australia - design and sale of wearable
products and software
Australia - non trading entity
United States of America - holding
company
United States of America - North American
sales operations
United States of America – Video Analytics
United States of America – Content
Licensing
United Kingdom – UK sales operations
Japan – Asia sales operations
Ireland – holding company
Ireland – manufacturing, design and sale of
wearable products and software in EMEA
Argentina – South American sales
operations
China – Asia sales operations
United Kingdom – subscription online sport
learning platform
Isle of Man – holding company
United Kingdom – United Kingdom sales
operations
Germany – European sales operations
United States of America – North American
sales operations
United Kingdom – United Kingdom sales
operations
Group Ownership Interest
2022
%
2023
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
80
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
75
100
100
100
100
100
*
**
Refer to Note 36 for further information.
Catapult is in the process of dissolving its US wholly owned subsidiaries, Forbes Recruit Evaluation, Inc. and Forbes Recruit Evaluation, LLC.
(i) Catapult Group International Limited (the Company) and Catapult Sports Pty Ltd are party to a Deed of Cross Guarantee dated June 26,
2017. Catapult International Pty Ltd joined the Deed of Cross Guarantee via a Deed of Assumption dated March 29, 2021. The Company,
Catapult Sports Pty Ltd and Catapult International Pty Ltd together constitute the ‘Closed Group’. The effect of the deed is that the Company
has guaranteed to each creditor to pay any deficiency in the event of the winding up of any of the controlled entities in the Closed Group. All
entities in the Closed Group have also given a similar guarantee in the event that the Company is wound up – refer to Note 35.
(ii) Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785 Order 98/1418 (as amended) relief has been granted to
Catapult Sports Pty Ltd and Catapult International Pty Ltd from the Corporations Act 2001 requirements for preparation, audit and
lodgement of financial reports and directors’ reports.
(iii) These entities have provided guarantees to Western Alliance Bank in respect of credit facilities of USD 20,000k granted to Catapult Sports Inc
and Collegiate Images LLC.
(iv) On November 9, 2022, a Put option was exercised regarding the previous acquisition of Science for Sport Limited (SfS) the subscription online
sport learning platform. The Put option exercised relates to 4.55% of the issued share capital of SfS for $28k.
UNLEASH POTENTIAL
67
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6. SEGMENT INFORMATION
For the 12-month period ended March 31, 2023
Management identifies its operating segments based on the Group’s product verticals which represent the main
offerings provided by the Group. The Group’s three main operating segments are:
• Performance & Health: design, development and supply of wearable technology and athlete monitoring software
solutions to sports teams, athletes, & the prosumer market.
• Tactics & Coaching: design, development and supply of video analysis, editing, and publishing software solutions to
sports teams.
• Media & Other: provides media licensing, athlete management & professional services to customers.
As at September 30, 2022, Catapult underwent a review of its Reporting Segments and updated these segments to
more accurately align to the current operations of the business. The comparatives in this segment note have been
restated to reflect the new segments. The changes are as follows:
“Wearables” was renamed to “Performance & Health”
“Video Analytics” was renamed to “Tactics & Coaching”
“New Product” was renamed to “Media & Other”
“Management” & “Prof Services” product verticals were transferred from “Wearables” to “Media & Other”
“Media & Engagement” product verticals were transferred from “Video Analytics” to “Media & Other”
“P&H Prosumer” product verticals were transferred from “New Product” to “Performance & Health”.
These operating segments are monitored, and strategic decisions are made on the basis of adjusted segment
operating results by the Chief Operating Decision Maker. The Group identifies the Chief Executive Officer as Chief
Operating Decision Maker.
The revenues and profit generated by each of the Group’s operating segments and segment assets and liabilities are
summarized as follows:
12 months to March 31, 2023
Revenue – external customers
Segment EBITDA
Segment operating (loss)/profit
Segment assets (excluding goodwill) (i)
Segment liabilities
12 months to March 31, 2022 (restated)
Revenue – external customers
Segment EBITDA
Segment operating (loss)/profit
Segment assets (excluding goodwill) (i)
Segment liabilities
Performance
& Health
Tactics
& Coaching
Media
& Other
Total
US$’000
US$’000
US$’000
US$’000
42,646
(6,522)
(15,147)
58,104
34,982
28,183
(5,582)
(16,392)
48,409
33,806
13,531
1,089
55
5,161
8,180
Performance
& Health
Tactics
& Coaching
Media
& Other
84,360
(11,015)
(31,484)
111,674
76,968
Total
US$’000
US$’000
US$’000
US$’000
36,496
(9,481)
(15,087)
53,765
23,170
26,730
(6,028)
(17,302)
60,315
32,213
13,787
1,239
202
5,085
6,007
77,013
(14,270)
(32,187)
119,165
61,390
(i)
The Group has undergone an update to its operating segments for the year to March 31, 2023 and has updated the goodwill allocations to
reflect this. As such, goodwill has been excluded from segment assets as it is not comparable for the periods March 31, 2023 and March 31, 2022.
UNLEASH POTENTIAL
68
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6. SEGMENT INFORMATION (CONTINUED)
Revenue by Geography
The Group’s revenues from external customers (excludes government grants) are divided into the following
geographical areas:
12 months to March 31, 2023
Revenue – external customers
Australia
APAC
EMEA
United States of America
Rest of Americas
Total
12 months to March 31, 2022 (restated)
Revenue – external customers
Australia
APAC
EMEA
United States of America
Rest of Americas
Total
Performance
& Health
US$’000
Tactics
& Coaching
US$’000
Media
& Other
US$’000
Total
US$’000
3,706
4,176
15,008
15,808
3,948
42,646
65
230
4,829
22,129
930
28,183
108
66
603
12,716
38
13,531
3,879
4,472
20,440
50,653
4,916
84,360
Performance
& Health
US$’000
Tactics
& Coaching
US$’000
Media
& Other
US$’000
Total
US$’000
3,174
3,611
13,678
12,912
3,121
36,496
44
194
3,953
21,763
776
26,730
165
74
786
12,727
35
13,787
3,383
3,879
18,417
47,402
3,932
77,013
All revenue is generated from external customers, and there are no inter-segment revenues.
Revenues from external customers in the Group’s domicile, Australia, as well as its major markets, Europe, Middle
East and Africa (EMEA), Asia-Pacific (APAC) and the Americas, have been identified on the basis of the customer’s
geographical location.
6.1 Goodwill allocation and impairment testing for the changes to Reporting Segments
As a result of the changes to the Reporting Segments as at September 30, 2022, the Group has performed an
impairment test immediately prior to the change of the Reporting Segments.
As part of the reorganization of the Reporting Segments, goodwill has been reallocated using a relative value
method as a basis for the reallocation.
Goodwill allocation prior to reorganization of Reporting Segments
Elite Wearables (Segment – Wearables)
Sub-Elite Wearables (Segment – New Products)
Video Analytics (Segment – Video Analytics)
Balance at period end
Sep 2022
US$'000
Mar 2022
US$’000
1,524
2,555
46,958
1,945
2,904
46,957
51,037
51,806
Change in goodwill balance from March 2022 to September 2022 is due to foreign exchange differences amounting to US$769k.
UNLEASH POTENTIAL
69
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6. SEGMENT INFORMATION (CONTINUED)
6.1 Goodwill allocation and impairment testing for the changes to Reporting Segments (continued)
Goodwill allocation after the reorganization of Operating
Segments
Performance & Health
Tactics & Coaching
Media & Engagement
Management
Professional services
Balance at year end
Mar 2023
US$’000
3,949
31,451
15,505
386
81
51,372
The recoverable amount of the CGU or group of CGUs is based on the value in use immediately before the change in
Reporting Segments was in excess of the carrying amount. The Group has also performed an impairment test
immediately subsequent to the change in Reporting Segments whereby it was determined that the recoverable
amount remained in excess of the carrying value of the CGU or group of CGUs. Based on this, management did not
identify any impairment to the CGU or group of CGUs resulting from the changes from the reorganization of
Reporting Segments as at September 30, 2022 where the reorganization took place.
The Group has used the value-in-use to determine the recoverable amount. The present value of the expected cash
flows was determined using updated financial forecasts approved by Management and the Board, the terminal
growth rate remained consistent at 2.9% and the discount rate was updated to 9.4% for all CGU value-in-use
calculations as at September 30, 2022. The assumptions used for the CGU value-in-use calculations as at March 31,
2022 are shown below:
Elite Wearables
Sub-Elite Wearables
Video Analytics
NOTE 7. REVENUE
Revenue has been generated from the following types of sales transactions:
Terminal Growth rates
2022
2.9%
2.9%
2.9%
Discount
rates
2022
9.5%
9.4%
9.2%
Capital revenue (i)
Subscription and service (ii), (iii)
Total Revenue
Capital revenue is goods and services transferred at a point of time
Subscription and service revenue is transferred over time
(i)
(ii)
(iii) Subscription and service revenue for FY23 includes a significant financing component of $289k (non-cash)
2023
US$’000
2022
US$’000
6,715
77,645
8,423
68,590
84,360
77,013
UNLEASH POTENTIAL
70
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 8. OTHER INCOME
Other income has been generated from the following sources:
Government grants and assistance (i), (ii)
Other income (iii)
Total Other Income
2023
US$’000
2022
US$’000
183
1,003
1,186
1,588
173
1,761
(i)
This primarily relates to the receipt of government grant payments received from governments in response to the COVID-19 pandemic.
Government grants are recognized in the financial statements at their fair values when there is a reasonable assurance that the Consolidated
Entity will comply with the requirements and that the grant will be received.
(ii) During the year-ended March 31, 2023 certain government grants, which the Group had reported as loans in the prior reporting period, were
converted to grant monies.
(iii) This includes other income recognized as a result of the remeasurement of the contingent consideration on the SBG acquisition (further details
included at Note 36 and 37).
Government grants are initially recognized at fair value when there is reasonable assurance that the grants will be
received and the Group will comply with the conditions associated with the grant. Grants of a revenue nature are
recognized in the profit and loss as other income on a systematic basis in the periods in which the related expenses
are recognized.
NOTE 9. COST OF GOODS SOLD
Cost of goods sold for the period includes the following:
Purchases
Royalties
Data centre and cloud hosting
Freight & delivery
Other
Inventory movements
Total Cost of Goods Sold
2023
US$’000
2022
US$’000
8,050
5,243
3,106
2,383
1,005
747
8,399
4,416
2,402
2,225
1,271
894
20,534
19,607
UNLEASH POTENTIAL
71
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 10. CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components:
USD
CNY
EUR
GBP
AUD
ARS
JPY
USD (Cash-in-transit)
2023
US$’000
2022
US$’000
10,764
1,796
1,344
1,329
627
203
162
-
7,085
1,564
3,920
7,043
3,870
176
611
1,839
Total cash and cash equivalents
16,225
26,108
The amount of cash and cash equivalents inaccessible to the Group as at March 31, 2023 amounts to US$399,363
(2022: US$377,036) relating to bank guarantees for rental leases held by the company. Cash-in-transit in the prior
year represents payments due on or after April 1, 2022 that were being processed by the Company’s banking providers
yet not remitted as of March 31, 2022.
UNLEASH POTENTIAL
72
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. TRADE AND OTHER RECEIVABLES
Trade and other receivables consist of the following:
Trade receivables, gross
Contract assets
Allowance for expected credit losses
Trade receivables and contract assets, net
Other receivables
Non-current trade and other receivables
Total financial assets
Other receivables
Taxes receivable
Prepayments
Non-current trade and other receivables
Total non-financial assets
Total trade and other receivables
Current trade and other receivables
Non-current trade and other receivables
2023
US$’000
2022
US$’000
10,560
2,865
(1,556)
11,869
1,126
367
13,362
710
688
1,699
153
3,250
16,612
16,092
520
13,077
2,448
(1,585)
13,940
277
280
14,497
717
996
1,971
49
3,733
18,230
17,901
329
The net carrying value of trade receivables is considered a reasonable approximation of fair value.
Trade receivables that do not contain a significant financing component or for which the Group has applied the
practical expedient are measured at the transaction price. Contract assets are recognized over the period in which
performance obligations are completed and represent the Group's right to consideration to date but not yet invoiced.
All of the Group’s trade and other receivables that have been classified as financial assets have been reviewed at every
reporting period for expected credit losses. Trade receivables are written-off when there is no reasonable expectation
of recovery but are still subject to enforcement activity. Subsequent recoveries of amounts previously written-off are
credited against the same line item. During the year ended March 31, 2023, an amount of US$451,192 (2022:
US$415,694) was found to be impaired, and subsequently these bad debts were written off. Furthermore, details on
Group’s impairment policy are mentioned in Note 31.
Set out below is the movement in the allowance for expected credit losses of trade receivables and contract assets:
Balance at beginning of the year
Write-off
Provision for expected credit losses
Balance at year end
2023
US$’000
2022
US$’000
1,585
(451)
422
1,556
1,753
(416)
248
1,585
UNLEASH POTENTIAL
73
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 12. INVENTORIES
Raw materials and consumables (at cost)
Finished goods (at lower of cost and net realizable value)
Total inventories at the lower of cost and net realizable value
2023
2022
US$'000 US$'000
348
1,895
2,243
-
2,990
2,990
In 2023, the total cost of US$11,180K associated with inventories was included in the Consolidated Statement of Profit
and Loss and Other Comprehensive Income as an expense (2022: US$11,518k). At March 31, 2023, the provision for
obsolete stock was US$1,187k (2022: US$1,225k).
NOTE 13. NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT
Details of the Group's property, plant and equipment and their carrying amounts are as follows:
Subscription &
Demo Units
US$'000
Plant & Office
Equipment
US$'000
Furniture &
Fittings
US$'000
Leasehold
Improvements
US$'000
Leased
Assets
US$'000
Total
US$'000
Gross carrying amount
Balance as at April 1,
2022
Additions
Disposals
Net exchange
differences
Balance as at March 31,
2023
Depreciation and
impairment
Balance at April 1, 2022
Depreciation
Disposals
Net exchange
differences
Balance as at March 31,
2023
Carrying amount as at
March 31, 2023
17,440
8,323
-
(1,853)
7,256
1,079
(88)
259
148
117
-
2
1,704
257
-
(98)
6,058
3,233
(879)
32,606
13,009
(967)
(178)
(1,868)
23,910
8,506
267
1,863
8,234
42,780
(6,527)
(3,147)
-
(4,954)
(1,214)
61
749
(156)
(17)
(4)
-
1
(1,402)
(126)
-
(4,100)
(1,599)
612
(17,000)
(6,090)
673
97
155
846
(8,925)
(6,263)
(20)
(1,431)
(4,932)
(21,571)
14,985
2,243
247
432
3,302
21,209
UNLEASH POTENTIAL
74
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13. NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Subscription &
Demo Units
US$'000
Plant & Office
Equipment
US$'000
Furniture &
Fittings
US$'000
Leasehold
Improvements
US$'000
Leased
Assets
US$'000
Total
US$'000
8,610
-
8,943
-
(113)
5,294
50
1,952
-
(40)
133
-
16
-
(1)
1,650
6,100
21,787
-
69
-
(15)
-
-
-
50
10,980
-
(42)
(211)
17,440
7,256
148
1,704
6,058
32,606
(4,892)
(1,688)
-
(3,834)
(1,143)
-
53
23
(13)
(5)
-
1
(1,271)
(144)
-
(2,304)
(1,808)
-
(12,314)
(4,788)
-
13
12
102
(6,527)
(4,954)
(17)
(1,402)
(4,100)
(17,000)
10,913
2,302
131
302
1,958
15,606
Gross carrying amount
Balance as at April 1,
2021
Acquisition through
business combination
Additions
Disposals
Net exchange
differences
Balance as at March 31,
2022
Depreciation and
impairment
Balance as at April 1,
2021
Depreciation
Disposals
Net exchange
differences
Balance as at March 31,
2022
Carrying amount as at
March 31, 2022
All depreciation and amortization charges are included within depreciation and amortization expense.
There were no material contractual commitments to acquire property, plant and equipment at 31 March, 2023 (2022:
Nil).
The net book value of assets held under leases at 31 March, 2023 was US$259,238 (2022: US$288,421) and is included
in Office Equipment.
UNLEASH POTENTIAL
75
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. NON-CURRENT ASSETS - GOODWILL
The movements in the net carrying amount of goodwill are as follows:
Balance at beginning of the year
Goodwill recognized on acquisition of SBG (i)
Foreign exchange effect on goodwill
Balance at year end
(i)
Refer to Note 36 for further information.
14.1 Impairment Testing
Goodwill allocation
Performance & Health
Tactics & Coaching
Media & Engagement
Management
Professional services
Balance at year end
2023
US$'000
2022
US$'000
51,806
-
(434)
41,994
9,798
14
51,372
51,806
2023
US$'000
3,949
31,451
15,505
386
81
51,372
(i)
The Group has undergone an update to its operating segments for the year to March 31, 2023 and has updated the goodwill allocations to
reflect this. As such, goodwill allocation for March 31, 2022 has been excluded as it is not comparable for the periods March 31, 2023 and March
31, 2022. Refer to Note 6 for further information.
The Group assesses, at each reporting date, whether there is an indication that the CGU or group of CGUs may be
impaired. If any indication exists, or when annual impairment testing for the CGU or group of CGUs is required, the
Group estimates the CGU or group of CGUs recoverable amount. The CGU or group of CGUs recoverable amount is
the higher of the CGU or group of CGUs fair value less costs of disposal and its value in use.
The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or groups of assets. When the carrying amount of the CGU or
group of CGUs exceeds its recoverable amount, the CGU or group of CGUs is considered impaired and is written down
to its recoverable amount. Impairment losses of continuing operations are recognized in the statement of profit or
loss in expense categories consistent with the function of the impaired asset.
The recoverable amounts were determined based on value‐ in‐ use calculations, covering the detailed five‐ year forecast,
followed by a terminal growth rate of expected cash flows for the units.
Cash flows
The present value of the expected cash flows of each CGU or Group of CGU’s is determined by applying a suitable
discount rate. In measuring value-in-use, cash flow projections are based on:
• Reasonable and supportable assumptions that represent management’s best estimate of the range of
economic conditions that will exist over the remaining useful life of the asset; and
• Most recent financial budgets/forecasts approved by Management, but exclude any estimated future cash
inflows or outflows expected to arise from future restructurings or from improving or enhancing the asset’s
performance; and
• Estimates cash flow projections beyond the period covered by the most recent budgets/forecasts by
extrapolating the projections based on the budgets/forecasts using a steady or declining growth rate for
subsequent years.
UNLEASH POTENTIAL
76
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. NON-CURRENT ASSETS - GOODWILL (CONTINUED)
14.1 Impairment Testing (continued)
Terminal Growth rates
2023
Discount
rates
2023
Performance & Health
Tactics & Coaching
Media & Engagement
Management
Professional services
11.5%
11.5%
11.1%
11.1%
11.1%
The Group underwent a review of Reporting Segments and updated these segments to more accurately align to the current operations of the
business and have updated the CGUs to reflect this. As such, the terminal growth rates and discount rates for March 31, 2022 have been
excluded as they are not comparable to calculations as at March 31, 2023 and March 31, 2022. Refer to Note 6 for further information.
2.9%
2.9%
2.9%
2.9%
2.9%
(i)
Impact of possible changes in key assumptions
The Directors and management have considered and assessed reasonably possible changes for other key assumptions
and have not identified any instances that could cause the carrying amount of the Group of CGUs above to exceed its
recoverable amount.
Growth rates
Five years of cash flows were included in the discounted cash flow model. The cash flow projections included specific
estimates for five years and a terminal growth rate thereafter. The terminal growth rate was determined based on
management’s estimate of the long-term compound annual EBITDA growth rate, consistent with industry trends.
Revenue growth was projected taking into account the average growth levels experienced over the past five years and
the estimated sales volume and price growth for the next five years. It was assumed that the sales price would increase
in line with forecast inflation over the next five years.
Continued investment in core product development to underpin revenue growth, particularly in wearables, video and
tactical products.
The growth rates reflect management’s estimates, as publicly published growth rates for this industry segment are
not readily available.
Discount rates
The discount rate reflects appropriate adjustments relating to market risk and specific risk factors of the business
unit. The discount rate was a post-tax measure estimated based on the historical industry average weighted-average
cost of capital.
14.2 Brand names
The carrying value of brand names associated with each group of cash generating unit are outlined below:
Performance and Health
Tactics and Coaching
Brand acquired on acquisition of SBG (i)
Balance at year end
(i)
Brand recognized on the acquisition of SBG is being recorded in the Tactics and Coaching CGU.
2023
2022
US$'000 US$'000
-
-
548
86
600
718
548
1,404
UNLEASH POTENTIAL
77
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15. NON-CURRENT ASSETS - INTANGIBLE ASSETS
Acquired
Brand
Software
Name
Licenses
US$'000 US$'000 US$'000
Hardware
IP
Distributor
Relationships
Distributor
Contracts
US$'000 $US$'000
Customer
Relationships
US$'000
Internally
Developed
Software
US$'000
Total
US$'000
1,158
36
10,986
3,129
4,628
-
(111)
(849)
(19)
318
-
(33)
72
-
(8)
21,491
14
65,621
13,146
104,274
16,325
(60)
(2,071)
(3,151)
1,083
13,266
4,609
285
64
21,445
76,696
117,448
(718)
(126)
(6,933)
(1,715)
(3,224)
(849)
68
578
12
(246)
(29)
25
(72)
-
8
(12,492)
(2,808)
(32,251)
(8,979)
(55,936)
(14,506)
37
1,030
1,758
(776)
(8,070)
(4,061)
(250)
(64)
(15,263)
(40,200)
(68,684)
307
5,196
548
35
-
6,182
36,496
48,764
Acquired
Brand
Software
Name
Licenses
US$'000 US$'000 US$'000
Hardware
IP
Distributor
Relationships
US$'000
Distributor
Contracts
US$'000
Customer
Relationships
US$'000
Internally
Developed
Software
US$'000
Total
US$'000
957
9,553
3,788
-
213
-
1,731
(12)
(298)
843
-
(3)
1,158
10,986
4,628
(634)
(91)
(5,340)
(1,618)
(158)
(3,065)
7
25
(1)
323
-
-
(5)
318
(218)
(31)
3
73
-
-
(1)
72
(73)
-
1
15,254
35,607
65,555
6,247
-
18,645
11,484
25,735
13,428
(10)
(115)
(444)
21,491
65,621
104,274
(9,974)
(2,521)
(25,975)
(6,467)
(42,372)
(13,793)
3
191
229
(718)
(6,933)
(3,224)
(246)
(72)
(12,492)
(32,251)
(55,936)
440
4,053
1,404
72
-
8,999
33,370
48,338
Gross carrying amount
Balance as at April 1,
2022
Additions
Net exchange
difference
Balance as at March
31, 2023
Amortization and
impairment
Balance as at April 1,
2022
Amortization
Net exchange
difference
Balance as at March
31, 2023
Carrying amount
March 31, 2023
Gross carrying amount
Balance as at April 1,
2021
Acquisition through
business combination
Additions
Net exchange
difference
Balance as at March
31, 2022
Amortization and
impairment
Balance as at April 1,
2021
Amortization
Net exchange
difference
Balance as at March
31, 2022
Carrying amount
March 31, 2022
UNLEASH POTENTIAL
78
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16. NON-CURRENT ASSETS - DEFERRED TAX ASSETS AND LIABILITIES
Deferred taxes arising from temporary differences and unused tax losses can be summarized as attributable to the
following:
Deferred Tax
Assets/(Liabilities)
Deferred Tax Assets
Professional fees and doubtful
debts
Provision for employee benefits
Other provisions
Equity raising costs
Contract liabilities
Tax losses
Share-based payments (a)
Deferred Tax Liabilities
Property, plant & equipment
Other intangible assets
Acquisition intangibles
Deferred tax movement
Net deferred tax
asset/(liability)
Reflected in the financial
position as follows:
Deferred tax asset
Deferred tax liability
April 1, 2022
US$'000
Recognized
directly in
equity
US$'000
Recognized
in Profit &
Loss
US$'000
Recognized in
Goodwill
US$’000
March 31,
2023
US$'000
-
-
-
-
-
-
(257)
(257)
-
-
-
-
(257)
(170)
1
659
(130)
(247)
-
(141)
(28)
(947)
(41)
2
(986)
(1,014)
347
518
907
409
2,201
4,678
1,362
10,421
(133)
(2,408)
(7,721)
(10,262)
-
159
7,893
(7,734)
159
-
-
-
-
-
-
-
-
-
-
-
-
-
177
519
1,566
279
1,954
4,678
964
10,137
(1,080)
(2,449)
(7,719)
(11,248)
-
(1,111)
6,621
(7,732)
(1,111)
UNLEASH POTENTIAL
79
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16. NON-CURRENT ASSETS - DEFERRED TAX ASSETS AND LAIBILITIES (CONTINUED)
Deferred Tax
Assets/(Liabilities)
Deferred Tax Assets
Professional fees and doubtful
debts
Provision for employee benefits
Other provisions
Equity raising costs
Contract liabilities
Tax losses
Share-based payments (a)
Deferred Tax Liabilities
Capitalized development
Property, plant & equipment
Other intangible assets
Acquisition intangibles
Deferred tax movement
Net deferred tax asset
Reflected in the financial
position as follows:
Deferred tax asset
Deferred tax liability
Recognized
directly in
equity
US$’000
Recognized
in Profit &
Loss
US$’000
April 1, 2021
US$’000
Recognized
in Goodwill
March
31, 2022
US$’000 US$’000
367
580
686
-
1,192
4,678
-
7,503
(128)
-
(3,020)
-
(3,148)
-
4,355
4,355
-
4,355
-
(20)
-
-
409
-
-
667
1,076
-
-
-
-
-
1,076
(62)
221
-
1,009
-
694
1,842
128
(133)
612
-
607
2,449
-
-
-
-
-
-
-
-
-
-
-
(7,721)
(7,721)
(7,721)
347
518
907
409
2,201
4,678
1,362
10,421
-
(133)
(2,408)
(7,721)
(10,262)
-
159
7,893
(7,734)
159
(a) The tax effect of share-based payment awards granted is recognized in current income tax expense, except to the extent that the total tax
deductions are expected to exceed the cumulative remuneration expense. In this situation, the excess of the associated current or deferred tax
is recognized in equity and forms part of the other reserves in equity.
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable
profits, together with future tax planning strategies.
The Group has $85,567k (2022: $92,225k) of tax losses carried forward. These losses relate to subsidiaries that have a
history of losses and may not be used to offset taxable income elsewhere in the Group. The Group has recognized
deferred tax assets of $4,678k (FY22:$4,678k) on a portion of its US losses, the vast majority of which are available
for a period of twenty years.
NOTE 17. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade and other payables consist of the following:
Current
Trade payables and other payables
2023
US$’000
2022
US$’000
9,238
9,875
All amounts are short-term. The carrying values of trade payables and other payables are considered to be a
reasonable approximation of fair value.
UNLEASH POTENTIAL
80
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 18. CONTRACT LIABILITIES AND OTHER LIABILITIES
Contract liabilities and other liabilities consist of the following:
Contract liabilities – current (i)
Customer deposits
Other liabilities
Deferred consideration – current (ii)
Other liabilities – current
Total contract and other liabilities – current
Contract liabilities – non-current (i)
Contingent consideration – non-current (ii)
Total contract and other liabilities – non-current
2023
US$’000
2022
US$’000
28,158
328
2,083
157
2,568
25,385
269
1,888
298
2,455
30,726
27,840
3,289
271
4,553
1,225
3,560
5,778
(i)
All amounts recognized relating to contract liabilities are assessed for current versus non‐ current classification and are applied to revenue as
recognized in relation to the timing of the client contract. The Group expects to recognize $28,158k (FY22: $25,385k) of contract liabilities
during the next 12 months following March 31, 2023, with the balance falling into FY24 and FY25. The increase in contract liabilities is due to the
higher proportion of subscription revenues recorded in FY23, and the ACV growth recorded in FY23.
(ii) On July 1, 2021, Catapult acquired SBG Sports Software Limited (SBG). Catapult agreed to acquire 100% of the entire issued share capital of
the company for a total consideration of US$45,000k. Please refer to Note 36 for further information.
UNLEASH POTENTIAL
81
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 19. FINANCIAL ASSETS AND LIABILITIES
19.1 Categories of financial assets and liabilities
Note 4.13 provides a description of each category of financial assets and financial liabilities and the related accounting
policies. The carrying amounts of financial assets and financial liabilities in each category are as follows:
Note
11
11
11
10
Note
17
18
19.2
22.1
22.1
Note
11
11
11
10
Note
17
18
22.1
22.1
March 31, 2023
Financial Assets
Non-current receivables
Trade receivables and
contract assets, net
Other receivables
Cash and cash equivalents
March 31, 2023
Financial Liabilities
Trade and other payables
Other liabilities
Borrowings
Other financial liabilities
Non-current other financial
liabilities
March 31, 2022
Financial assets
Non-current receivables
Trade receivables and
contract assets, net
Other receivables
Cash and cash equivalents
March 31, 2022
Financial liabilities
Trade and other payables
Other liabilities
Other financial liabilities
Non-current other financial
liabilities
UNLEASH POTENTIAL
Loans and receivables
(carried at amortized
cost)
US$’000
Other assets
(carried at amortized cost)
US$’000
Total
US$’000
367
11,869
1,126
-
13,362
-
367
-
-
16,225
16,225
11,869
1,126
16,225
29,587
Other Liabilities
(carried at amortized
cost)
US$’000
Other Liabilities at FVTPL
US$’000
Total
US$’000
9,238
157
15,747
1,931
1,899
28,972
-
-
-
-
-
-
Loans and receivables
(carried at amortized
cost)
US$’000
Other assets
(carried at amortized cost)
US$’000
280
13,940
277
-
14,497
-
-
-
26,108
26,108
9,238
157
15,747
1,931
1,899
28,972
Total
US$’000
280
13,940
277
26,108
40,605
Other Liabilities
(carried at amortized
cost)
US$’000
Other Liabilities at FVTPL
US$’000
Total
US$’000
9,875
298
2,040
837
13,050
-
-
-
-
-
9,875
298
2,040
837
13,050
82
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 19. FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
19.2 Borrowings and other financial liabilities
Borrowings include the following financial liabilities:
Borrowings (non-current)
Total borrowings
2023
US$’000
2022
US$’000
15,747
15,747
-
-
Bank borrowings are secured by all property of Catapult Sports Inc, the Group’s US Subsidiary. The company entered
into a secured revolving loan facility with Western Alliance Bank in April 2017.
In December 2022, the Group entered into a new revolving loan facility with Western Alliance Bank for a $20,000k
debt facility with a maturity date of December 27, 2024. The loan facility has therefore been classified as a non-current
liability. Bank borrowings are secured by all property of the Company, Catapult Sports Pty Ltd and Catapult Group
US, Inc., except for customary excluded collateral.
At March 31, 2023, the total facility is for $20,000k. Of this amount, $15,747k was drawn down during the period.
Current interest rates on the bank borrowing are variable and average 7.2% (2022: 5.0%). The Company was in
compliance with its financial covenants in the reporting period. On May 10, 2023, under the requirement of the loan
facility, the financial covenant values for the period June 2023 to May 2024 were mutually agreed between the Group
and Western Alliance Bank.
NOTE 20. CURRENT LIABILITIES – EMPLOYEE REMUNERATION
20.1 Employee benefits expense
Expenses recognized for employee benefits are analyzed below:
Wages and salaries
Share-based payments (equity-settled) (i)
Social security costs
Superannuation – defined contribution plans
Employee benefit expenses
2023
US$’000
2022
US$’000
38,499
12,103
3,768
1,906
36,499
13,592
3,473
1,370
56,276
54,934
(i)
During the year, the Group only incurred expenses arising from equity-settled share-based payments. This amount includes $6,900k (FY22:
$8,300k) for SBG consideration being treated as share-based payments. Refer to Note 36 for more details.
20.2 Share-base employee remuneration
Director Fee Sacrifice Plan
The Salary Sacrifice Offer is designed to encourage Directors to build their Shareholdings in the Company. It is not
intended to be used for the purposes of providing Directors with additional remuneration.
Participation in the Salary Sacrifice Offer by a Director in respect of their annual base fees is voluntary except for the
Board has determined that fees paid to Directors in their role as Chairman of a Board Committee will be satisfied by
the issue of Rights. Therefore, participation in the Salary Sacrifice Offer by a Director for Chairman Committee fees
will be mandatory. The current fee payable for the Chairmen of the SaaS Scaling Committee, Audit & Risk Committee
and the Nomination & Remuneration Committee is A$100,000, A$40,000, and A$20,000, respectively.
UNLEASH POTENTIAL
83
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20. CURRENT LIABILITIES – EMPLOYEE REMUNERATION (CONTINUED)
20.2 Share-base employee remuneration (continued)
Employee share plan
Catapult has continued to utilise its established Employee Share Plan (Employee Plan) to assist in the motivation,
retention and reward of executives and employees. The Employee Plan is designed to align the interests of employees
with the interests of shareholders by providing an opportunity for eligible employees (including any person who is a
full-time or permanent part-time employee or officer, or director of Catapult or any related body corporate of
Catapult) to receive an equity interest in Catapult through the granting of Options, Performance Rights or other
Awards.
The Shares held by the Employee Plan Trustee are Restricted Securities such that the Employee Plan Trustee is not
able to dispose of them within 24 months of Official Quotation. The key terms of the Employee Plan are set out below:
Eligibility
Eligibility to participate in the Employee Plan and the number of Options, Performance Rights or other Awards offered
to each individual participant will be determined by the Board.
Grants
Under the rules of the Employee Plan, Options, Performance Rights and/or other Awards may be offered or granted
to eligible employees of Catapult or any related body corporate of Catapult from time to time, subject to the discretion
of the Board.
Terms and conditions
The Board has the discretion to set the terms and conditions (including conditions in relation to vesting, disposal
restrictions or forfeiture and any applicable exercise price) on which it will offer or grant Options, Performance Rights
or other Awards under the Employee Plan and may set different terms and conditions which apply to different
participants in the Employee Plan. The Board will determine the procedure for offering or granting Options,
Performance Rights and/or other Awards (including the form, terms and content of any offer, invitation or acceptance
procedure) in accordance with the rules of the Employee Plan.
Options and Performance Rights and other Awards will vest and become exercisable to the extent that the applicable
performance, service, or other vesting conditions specified at the time of the grant are satisfied (collectively the
“Vesting Conditions”).
Shares issued (including shares issued upon exercise of Options or Performance Rights granted) under the Employee
Plan will rank equally in all respects with the other issued shares.
Subject to satisfaction of Vesting Conditions, a participant may exercise an Option, Performance Right or other Award
by lodging an exercise notice with Catapult and complying with any requirements under the Employee Plan.
A participant will have a vested and indefeasible entitlement to any dividends declared and distributed by Catapult
on any shares which, at the closing date for determining entitlement to those dividends, are standing to the account
of the participant. A participant may exercise any voting rights attaching to shares registered in the participant’s
name.
Catapult may, in its discretion, issue new shares or cause existing shares to be acquired or transferred to the
participant, or a combination of both alternatives, to satisfy Catapult’s obligations under the Employee Plan. If
Catapult determines to cause the transfer of Shares to a participant, the shares may be acquired in such manner as
Catapult considers appropriate, including from a trustee appointed under the Employee Plan.
Pursuant to the Employee Plan, Catapult has appointed the Employee Plan Trustee to acquire and hold Shares on
behalf of participants and for the purposes of the Employee Plan. Catapult may give directions to the Employee Plan
Trustee as contemplated in the trust deed or if in connection with any Award. During FY23, Catapult subscribed for
Nil shares (FY22: Nil shares) to the Catapult Employee Share Plan Trust. At March 31, 2023 the Employee Plan Trustee
holds 2,663,748 (2022: 6,748,763) shares on behalf of participants and for the purposes of the Employee Plan.
UNLEASH POTENTIAL
84
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20. CURRENT LIABILITIES – EMPLOYEE REMUNERATION (CONTINUED)
20.2 Share-base employee remuneration (continued)
Options, Performance Rights and other Awards which have not been exercised will be forfeited if the applicable
Vesting Conditions and any other conditions to exercise are not met during the prescribed vesting period or if they are
not exercised before the applicable expiry date. In addition, Options, Performance Rights and other Awards will lapse
if the participant deals with the Options, Performance Rights or other Awards in breach of the rules of the Employee
Plan or in the opinion of the Directors, a participant has acted fraudulently or with gross misconduct.
Options, Performance Rights and other Awards will not be quoted on the ASX. Catapult will apply for official quotation
of any Shares allotted under the Employee Plan unless the Board resolves otherwise.
The Board may, in its absolute discretion, determine that a participant is required to pay an exercise price to exercise
the Options, Performance Rights or other Awards offered or granted to that participant.
Grants of Options, Performance Rights or other Awards under the Employee Plan to a Director may be subject to the
approval of shareholders, to the extent required under the ASX Listing Rules.
Participants in the Employee Plan must not enter into transactions or arrangements, including by way of derivatives
or similar financial products, which limit the economic risk of holding unvested Awards.
Subject to the rules of the Employee Plan, the Board must not offer Options, Performance Rights or other Awards if
the total of the following exceeds 5% of the number of Shares on issue at the time of the offer:
•
•
•
•
The number of Shares which are the subject of the offer of Awards;
The number of Shares which are the subject of any outstanding offers of Awards;
The number of Shares issued during the previous 5 years under the Employee Plan, but not including existing
Shares transferred to a participant after having been acquired for that purpose; and
The number of Shares which would be issued under all outstanding Awards that have been granted but which
have not yet been exercised, terminated or expired, assuming all such Awards were exercised ignoring any
Vesting Conditions, but disregarding any offer made, or Award offered or issued or Share issued by way or as
a result of:
an offer that does not meet disclosure to investors because of section 708 or section 1012D of the
Corporations Act;
an offer made pursuant to a disclosure document or product disclosure statement; or
other offers that are excluded from the disclosure requirements under the Corporations Act.
The Board may impose restrictions on dealing in Shares or Awards which are acquired under the Employee Plan, for
example, by prohibiting them from being sold, transferred, mortgaged, pledged, charged, or otherwise disposed of or
encumbered for a period of time.
If the Board determines that for taxation, legal, regulatory or compliance reasons it is not appropriate to issue or
transfer Shares, Catapult may in lieu of and in final satisfaction of Catapult’s obligation to issue or transfer Shares
as required upon the exercise of an Award by a participant, make a cash payment to the participant equivalent to the
fair market value of the Awards.
Where there is a change of control of Catapult, including where any person acquires a relevant interest in more than
50% of the Shares, or where the Board concludes that there has been a change in the control of Catapult, the Board
will determine, in its sole and absolute discretion, the manner in which all unvested and vested Awards will be dealt
with.
Where there is a takeover bid made for all of the Shares or a scheme of arrangement, selective capital reduction or
other transaction is initiated which has a similar effect to a full takeover bid for Shares, then participants are entitled
to accept the takeover offer or participate in the other transaction in respect of all or part of their Awards
notwithstanding any restriction period has not expired. Further, the Board may, at its discretion, waive unsatisfied
Vesting Conditions in relation to some or all Awards in the event of such a takeover or other transaction.
UNLEASH POTENTIAL
85
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20. CURRENT LIABILITIES – EMPLOYEE REMUNERATION (CONTINUED)
20.2 Share-base employee remuneration (continued)
If, prior to the exercise of an Award, Catapult makes a pro-rata bonus issue to shareholders, and the Award is not
exercised prior to the record date in respect of the bonus issue, the Award will, when exercised, entitle the participant
to one Share plus the number of bonus shares which would have been issued to the participant if the Award had been
exercised prior to the record date.
If Catapult undergoes a capital reorganization, then the terms of the Awards for the participant will be changed to
the extent necessary to comply with the ASX Listing Rules.
The Employee Plan also contains terms having regard to Australian law for dealing with the administration, variation
and termination of the Employee Plan.
Share options and weighted average exercise prices are as follows for the reporting periods presented:
Outstanding at April 1, 2022
Granted
Forfeited
Exercised
Expired
Outstanding at March 31, 2023
Exercisable at March 31, 2023
Options Program
Performance Rights
Number of
Shares
7,766,278
-
(2,012,059)
-
(576,500)
5,177,719
1,553,112
Weighted
average exercise
price (A$)
1.3140
-
1.3386
-
1.8465
1.2451
1.1171
Number of
Shares
6,001,573
9,089,628
(1,316,273)
(4,085,015)
-
9,689,913
795,645
Weighted
average exercise
price (A$)
-
-
-
-
-
-
-
Options Program
Performance Rights
Number of
Shares
Weighted
average exercise
price (A$)
Number of
Shares
Weighted
average exercise
price (A$)
Outstanding at April 1, 2021
Granted
Forfeited
Exercised
Expired
Outstanding at March 31, 2022
Exercisable at March 31, 2022
8,670,083
82,841
(185,000)
(132,500)
(669,146)
7,766,278
1,639,612
1.4062
1.3000
1.2886
1.6030
2.4754
1.3140
1.3314
2,536,850
5,340,222
(775,736)
(1,098,377)
(1,386)
6,001,573
226,886
-
-
-
-
-
-
-
The Group, in valuing its granted performance rights, has used its share price at the grant date. No options were
granted during the year. In valuing options granted in prior periods, the Group used the Black Scholes and Monte Carlo
Option valuation model.
UNLEASH POTENTIAL
86
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20. CURRENT LIABILITIES – EMPLOYEE REMUNERATION (CONTINUED)
20.3 Employee benefits
The liabilities recognized for employee benefits consist of the following amounts:
Wages and salaries
Social security costs & payroll taxes
Defined contribution plans
Accrued leave entitlements
Total current employee benefits
Non-current
Accrued leave entitlements
Total non-current employee benefits
2023
US$’000
2022
US$’000
2,049
411
890
2,627
3,409
919
833
1,992
5,977
7,153
158
158
133
133
The current portion of these liabilities represents the Group’s obligations to its current employees that are to be settled
during the next 12 months and its accrued annual leave liabilities and current accrued long service leave.
UNLEASH POTENTIAL
87
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. EQUITY – SHARE CAPITAL
The share capital of Catapult Group International Ltd consists only of fully paid ordinary shares; the shares do not
have a par value. All shares are equally eligible to receive dividends and the repayment of capital and represent one
vote at the shareholders’ meeting of Catapult Group International Ltd.
Shares issued and fully paid
for:
Beginning of the year
Shares issued for cash
Share issue costs
Movement in treasury shares
Exercise of performance
options and equity options
Shares issued for acquisition
Total contributed equity
March 31, 2023 March 31, 2022 March 31, 2023
March 31, 2022
Note
Authorized
Shares
Authorized
Shares
US$’000
US$’000
244,057,884
231,924,764
194,836
175,523
231,924,764
200,431,654
185,441
-
-
-
-
12,133,120
244,057,884
31,493,110
-
-
-
-
231,924,764
-
-
(6,003)
4,766
14,547
198,751
(3,915)
142,179
44,781
(957)
(1,809)
1,247
-
185,441
(9,918)
Treasury shares
21.1
(2,663,748)
(6,748,763)
Total contributed equity
241,394,136
225,176,001
194,836
175,523
During the financial year the Group awarded:
•
12,133,120 shares were issued as part of the share consideration in relation to the SBG acquisition
21.1 Treasury Shares
Treasury shares are shares in Catapult Group International Limited that are held by the Catapult Sports Employee
Share Plan Trust for the purpose of issuing shares under the Catapult Sports Employee Share Plan in respect of
options and performance rights issued under that Plan:
Opening Balance
Transactions during the year
Balance at year end
2023
Shares
2022
Shares
6,748,763
(4,085,015)
7,979,640
(1,230,877)
2,663,748
6,748,763
During the financial year, the following shares were issued under the Employee Share Plan:
•
The number of shares exercised under the performance rights plan was 4,085,015 at an average exercise price of
A$0.00. The amount raised was A$Nil (US$Nil).
UNLEASH POTENTIAL
88
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. EQUITY – SHARE CAPITAL (CONTINUED)
21.2 Performance rights granted
During the financial year, the following performance rights were granted under the Employee Share Plan:
•
6,813 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.83 (US$0.58)
•
•
•
•
•
•
•
•
•
•
•
•
•
31,104 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.76 (US$0.52)
18,529 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.90 (US$0.61)
7,401,200 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had
a fair value of A$0.95 (US$0.66)
799,300 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had
a fair value of A$1.00 (US$0.70)
198,885 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had
a fair value of A$1.00 (US$0.69)
259,850 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had
a fair value of A$0.83 (US$0.54)
61,900 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.88 (US$0.57)
172,560 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had
a fair value of A$0.87 (US$0.56)
5,087 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.82 (US$0.55)
39,380 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.81 (US$0.54)
4,480 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.72 (US$0.49)
50,800 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.70 (US$0.46)
39,740 performance rights as part of the Employee Share plan at an average exercise price of A$0.00 and had a
fair value of A$0.67 (US$0.45)
21.3 Options and performance rights on issue
The following sets out the weighted average exercise price calculations for all outstanding options (however,
excluding the effect of the performance rights as detailed in Note 20.2):
Outstanding at the beginning of the year
Outstanding at the end of the year
Exercisable at the end of the year
March 31, 2023
Weighted average
exercise price
1.3140
1.2451
1.1171
March 31, 2022 Weighted
average exercise price
1.4062
1.3140
1.3314
UNLEASH POTENTIAL
89
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 22. OTHER FINANCIAL LIABILITIES – LEASES
22.1 Lease liabilities
The Group’s lease liabilities, which are secured by the related assets held under leases, are classified as follows:
Lease liabilities (current)
Lease liabilities (non-current)
Total lease liabilities
2023
US$’000
1,931
1,899
2022
US$’000
2,040
837
3,830
2,877
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings)
and the movements during the year:
As at April 1
Additions
Adjustment to lease liabilities
Interest expense
Lease liability repayment
Exchange differences
Balance as at March 31
2023
2022
US$’000
US$’000
2,877
3,233
(267)
146
(1,972)
(187)
3,830
4,667
133
-
149
(1,852)
(220)
2,877
Lease payments not recognized as a liability
The Group has elected not to recognize a lease liability for short-term leases (leases with an expected term of 12
months or less) or for leases of low-value assets. Payments made under such leases are expensed on a straight-line
basis. In addition, certain variable lease payments are not permitted to be recognized as lease liabilities and are
expensed as incurred.
The expense relating to payments not included in the measurement of a lease liability is as follows:
Short-term leases
The Group had total cash outflows for leases of $2,486k in 2023 (FY22: $2,372k).
2023
US$’000
2022
US$’000
368
371
UNLEASH POTENTIAL
90
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 23. FINANCE COSTS AND FINANCE INCOME
Finance costs for the year consist of the following:
Interest expenses for borrowings and other financial liabilities:
Interest expense
Significant financing component (non-cash)
Finance costs
Finance income for the year consists of the following:
Interest income from cash and cash equivalents
NOTE 24. OTHER FINANCIAL ITEMS
Other financial items consist of the following:
Other financial items consist of the following:
Gain/(loss) on exchange differences
NOTE 25. CURRENT LIABILITIES – INCOME TAX
2023
US$’000
2022
US$’000
(598)
(289)
(887)
(200)
-
(200)
2023
US$’000
2022
US$’000
52
18
2023
US$’000
2022
US$’000
983
(595)
The major components of tax expense and the reconciliation of the expected tax expense based on the domestic
effective tax rate of Catapult Group International Ltd at 30% (2021: 30%) are:
Numerical reconciliation of income tax benefit and tax at the statutory rate
Loss before income tax expense
Prima facie tax benefit at the Australian tax rate of 30%
Overseas tax rate differential
Tax losses not recognized
Tax losses utilized in the current period
Deferred tax not recognized for share-based payments
Other non-deductible expenses
Local country taxes
Adjustments for prior periods
Actual tax expense/(benefit)
Made up of:
Current tax
Deferred tax
Income tax expense/(benefit)
2023
US$’000
2022
US$’000
(31,463)
(33,628)
(9,439)
1,145
4,530
-
3,213
617
71
(116)
(10,088)
1,782
4,549
(401)
3,457
-
-
(740)
21
(1,441)
151
(130)
621
(2,062)
21
(1,441)
UNLEASH POTENTIAL
91
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26. AUDITOR’S REMUNERATION
Fees paid and payable to the Group’s auditor during the year consisted of the following:
Assurance Services
Audit and review of the Financial Report – Ernst & Young
Other services
Employee compensation advice – Ernst & Young
Total auditor’s remuneration
NOTE 27. EARNINGS PER SHARE
2023
US$
2022
US$
290,220
389,596
-
24,349
290,220
413,945
Both the basic and diluted earnings per share have been calculated using the loss attributable to shareholders of the
Parent Company (Catapult Group International Ltd) as the numerator (i.e., no adjustments to profit were necessary
in 2022 or 2023). 14,867,632 (FY22: 13,767,851) options and performance rights have not been included in calculating
diluted EPS because their effect is anti-dilutive.
The reconciliation of the weighted average number of shares for the purpose of diluted earnings per share to the
weighted average number of ordinary shares used in the calculation of basic earnings per share is as follows:
27.1 Basic and diluted loss per share
2023
(US Cents)
2022
(US Cents)
Basic loss and diluted loss per share attributable to the ordinary equity holders of the
Company
(13.4)
(14.8)
27.2 Reconciliation of loss used in calculating loss per share
Basic and diluted loss per share
Loss attributable to the ordinary equity holders of the company used in calculating
loss per share:
From continuing operations
27.3 Weighted average number of shares used as the denominator
2023
US$’000
2022
US$’000
(31,461)
(32,091)
2023
Shares ‘000
2022
Shares
‘000
Weighted average number of shares used in basic and diluted earnings per share
234,421
216,292
UNLEASH POTENTIAL
92
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 28. EQUITY – DIVIDENDS
Nil paid in the year (FY22: Nil).
28.1 Dividends paid and proposed
There is no dividend paid or proposed in the current financial year (FY22: Nil).
28.2 Franking credits
The amount of the franking credits available for subsequent reporting periods are:
Balance of franking account at the beginning of the year
Impact of foreign exchange rates
Balance of franking account adjusted for deferred debits arising from past R&D tax
offsets received and expected R&D tax offset to be received for the current year
2023
US$’000
2022
US$’000
(2,874)
266
(2,920)
46
(2,608)
(2,874)
During the year ended March 31, 2023, the Group made no payments related to income tax, refunds or dividends
paid that would have an impact on the franking credits.
NOTE 29. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH FROM OPERATING ACTIVITIES
Loss after income tax (expense)/benefit for the year
Adjustments for:
Depreciation and amortization
Share-based payments
Foreign exchange differences
Net interest and dividends received included in investing and financing
Impairment losses on obsolete stock, receivables and other items
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables & contract assets
Decrease in inventories
Decrease/(increase) in non-current tax assets
(Decrease)/increase in trade and other payables
Increase/(decrease) in provision for income tax
Increase/(decrease) in deferred tax liabilities
(Decrease)/increase in employee benefits
Increase in other provisions
2023
2022
US$’000 US$’000
(31,484)
(32,187)
20,596
12,103
(928)
476
456
1,618
747
(4,351)
(637)
330
5,621
(1,151)
338
18,581
13,592
614
171
750
(4,595)
894
(778)
2,977
(12)
(607)
893
2,380
Net cash from operating activities
3,734
2,673
UNLEASH POTENTIAL
93
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 30. RELATED PARTY TRANSACTIONS
The Group’s related parties include its associates, key management, post-employment benefit plans for the Group’s
employees and others as described below.
Transactions with key management
2023
US$
2022
US$
30,955
133,424
During FY23, the Company spent $30,955 (FY22: $45,285) with Workday Group’s Adaptive Insights Pty Ltd to
integrate Adaptive Insights’ budgeting and forecasting software within its finance division, which delivers automation
and efficiency. Mr. Thomas F. Bogan is a director of Workday Group.
During FY22, the Company worked with SXIQ Digital Pty Ltd and spent $88,139 on order-to-cash process design and
implementation on a group level. Prior to joining Catapult Sports, Mr. Hayden Stockdale worked as the CFO of SXIQ
Digital Pty Ltd.
30.1 Transactions with key management personnel
Key management of the Group are the executive members of Catapult Group International’s Board of Directors and
certain members of Catapult’s executive team.
Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were
given or received. Outstanding balances are usually settled in cash.
Salaries including bonuses
Short-term share-based payments
Post-employment benefits
Total short-term employee benefits
Long-term share-based payments
Director salary sacrifice
Long service leave
Total long-term benefits
Total remuneration
2023
US$
2022
US$
1,342,721
344,687
48,704
1,736,112
167,461
193,962
2,376
363,799
1,591,107
648,901
61,619
2,301,627
533,217
107,982
392
641,591
2,099,911
2,943,218
UNLEASH POTENTIAL
94
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 31. FINANCIAL INSTRUMENT RISK
31.1 Risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The Group’s financial assets and liabilities by
category are summarized in Note 19.1. The main types of risks are market risk, credit risk and liquidity risk.
The Group’s risk management is coordinated in close cooperation with the Board of Directors and focuses on actively
securing the Group’s short to medium-term cash flows by minimizing exposure to financial markets. The Group does
not actively engage in the trading of financial assets for speculative purposes, nor does it write options. The most
significant financial risks to which the Group is exposed are described below.
31.2 Market risk analysis
The Group is exposed to currency risk resulting from its operating activities.
Foreign Currency Sensitivity
Exposures to currency exchange rates arise from the Group’s overseas sales and purchases, which are primarily
denominated in Australian dollars (AUD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY) and Chinese Yuan
(CNY)
Foreign currency denominated financial assets and liabilities which expose the Group to currency risk are disclosed
below. The amounts shown are those translated into US$ at the closing rate:
AUD
US$’000
GBP
US$’000
EUR
US$’000
JPY
US$’000
CNY
US$’000
Other
Currencies
US$’000
Total exposure
838
(331)
2,531
3,056
(2,218)
2,509
(2,840)
3,142
(611)
241
(9)
232
2,403
(55)
2,348
380
(23)
357
AUD
US$’000
GBP
US$’000
EUR
US$’000
JPY
US$’000
CNY
US$’000
Other
Currencies
US$’000
March 31, 2023
Short Term Exposure
Financial assets
Financial liabilities
March 31, 2022
Short term exposure
Financial assets
Financial liabilities
Total exposure
3,198
8,175
5,429
5,288
(2,090)
8,796
(621)
6,303
(874)
767
-
767
2,017
(50)
1,967
243
(9)
234
The following table illustrates the sensitivity of profit and equity in regards to the Group’s financial assets and
financial liabilities and the various exchange rates ‘all other things are equal’. It assumes a +/- 10% change of the
various exchange rate for the year ended March 31, 2023 (2022:10%).
UNLEASH POTENTIAL
95
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 31. FINANCIAL INSTRUMENT RISK (CONTINUED)
NOTE 31. FINANCIAL INSTRUMENT RISK (CONTINUED)
31.2 Market risk analysis (continued)
If the USD had strengthened by 10% against the respective currencies then this would have had the following
impact:
Foreign currency risk
March 31, 2023
Assets
Liabilities
March 31, 2022
Assets
Liabilities
AUD
US$’000
GBP
US$’000
EUR
US$’000
JPY
US$’000
CNY
US$’000
(277)
202
(481)
190
(228)
258
(800)
56
(286)
56
(573)
79
(22)
1
(70)
-
(218)
5
(183)
5
Other
currencies
US$’000
(34)
2
(22)
-
Total
US$’000
(1,066)
523
(2,127)
331
If the USD had weakened by 10% against the respective currencies, then this would have had the following impact:
AUD
US$’000
GBP
US$’000
EUR
US$’000
JPY
US$’000
CNY
US$’000
Other
currencies
US$’000
Total
US$’000
340
(246)
588
(232)
279
(316)
977
(69)
349
(68)
700
(97)
27
(1)
85
-
267
(6)
224
(6)
42
(3)
26
-
1,303
(640)
2,601
(404)
March 31, 2023
Assets
Liabilities
March 31, 2022
Assets
Liabilities
Exposures to foreign exchange rates vary during the year depending on the volume of overseas
transactions. Nonetheless, the analysis above is considered to be representative of the Group’s exposure to currency
risk.
31.3 Credit risk analysis
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
its contractual obligations and arises principally from the Group’s receivables from customers. The Group’s maximum
exposure to credit risk is limited to the carrying amount of the financial assets recognized at the reporting date, as
summarized below:
Classes of financial assets
Cash and cash equivalents
Trade receivables and contract assets, net
Other receivables
Other long-term financial assets
2023
US$’000
2022
US$’000
16,225
11,869
1,126
367
29,587
26,108
13,940
277
280
40,605
UNLEASH POTENTIAL
96
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 31. FINANCIAL INSTRUMENT RISK (CONTINUED)
31.3 Credit risk analysis (continued)
Receivables balances are monitored on an ongoing basis. The Group applies the AASB 9 simplified approach to
measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract
assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on
shared credit risk characteristics and the days past due. The historical loss rates are adjusted to reflect current and
forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
Also, where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties
are obtained and used. The Group’s policy is to deal only with creditworthy counterparties.
The amounts at March 31, 2023, analyzed by the length of time past due, are:
Not more than three (3) months
More than three (3) months but not more than six (6) months
More than six (6) months but not more than one (1) year
More than one (1) year
Total
2023
US$'000
2022
US$’000
8,160
705
962
733
10,121
923
1,171
862
10,560
13,077
In respect of trade receivables, the Group is not exposed to any significant credit risk exposure to any single
counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number
of customers in various sports and geographical areas.
As at March 31, 2023, the group had a cash and cash equivalent balance of US$16,225k (FY22: US$26,108k), of which
US$7,129k (FY22: $US7,346k) was deposited with Western Alliance Bank. Western Alliance Bank is a USA-domiciled
regional banking organization and a Federal Deposit Insurance Corporation member. While the Bank operates in the
same market impacted by the recent US regional bank crisis, this has not adversely affected Catapult. As at May 3,
2023, Western Alliance Bank advised that it had not experienced unusual deposit flows. Its most recent update as of
May 11, 2023, reported deposit growth, and it reaffirmed its quarter-over-quarter deposit growth rate guidance. The
Group has assessed its credit risk related to cash on deposit with Western Alliance Bank, with no significant impact
noted at these times. Refer to the “Economic Risk” section of the Directors’ Report for potential risks associated with
the recent US regional bank crisis.
31.4 Liquidity risk
Liquidity risk is the risk that the Group might be unable to meet its obligations. The Group manages its liquidity needs
by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and
outflows due in the running of the day-to-day business. Liquidity needs are monitored on a week-to-week basis, as
well as on the basis of a rolling 90-day projection. The Group's US subsidiary, Catapult Sports Inc, finalized the
execution of documentation for an upsized US$20,000k debt facility with Western Alliance Bank during December
2022. The multi-year facility has improved commercial terms on the previous facility and a maturity date of December
27, 2024. At March 31, 2023, the Group had drawn down funds of $15,747k from the debt facility (2022: US$Nil).
UNLEASH POTENTIAL
97
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 31. FINANCIAL INSTRUMENT RISK (CONTINUED)
31.4 Liquidity risk (continued)
As at March 31, 2023, the Group's non-derivative financial liabilities have contractual maturities (including interest
payments where applicable) as summarized below:
March 31, 2023
US-Dollar loans (i)
Other financial liabilities
Trade and other payables
Contingent consideration
Current
Non-current
Within
6 months
US$'000
6 - 12
months
US$'000
1-5 years
US$'000
5+ years
US$'000
709
1,107
9,238
-
709
922
-
157
16,810
1,595
-
271
-
747
-
-
(i)
747
Interest payments is calculated at 9.00% (being the Wall Street Journal rate + 1.00%) up to the maturity date based on the carrying amount
of borrowings as at March 31, 2023.
18,676
11,054
1,788
This compares to the maturity of the Group’s non-derivative financial liabilities in the previous reporting period as
follows:
March 31, 2022
Other financial liabilities
Trade and other payables
Contingent consideration
Current
Non-current
Within
6 months
US$'000
6-12
months
US$'000
1-5 years
US$'000
5+ years
US$'000
1,255
9,875
-
839
-
298
780
-
1,225
11,130
1,137
2,005
104
-
-
104
NOTE 32. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, to provide
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce
the cost of capital. Consistent with others in the industry, the Group monitors capital on the basis of its gearing ratio.
In order to maintain or adjust its capital structure, the Group considers its issue of new capital, return of capital to
shareholders and dividend policy as well as its plan for acquisition or disposal of assets. The Group was fully compliant
with all bank facility covenants during the financial year.
NOTE 33. CONTINGENT LIABILITIES
The Group has obtained two bank guarantees as security in respect of lease agreements for its premises amounting
to US$399,362 as of March 31, 2023 (2022: US$377,036). These amounts, disclosed as contingent liabilities, remain
inaccessible to the Group, as disclosed in Note 10.
UNLEASH POTENTIAL
98
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 34. PARENT ENTITY INFORMATION
Information relating to Catapult Group International Ltd (‘the Parent Entity’):
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Foreign currency reserve
Other reserves
Accumulated losses
Share option reserve
Total equity
Statement of profit and loss and other comprehensive loss
Loss for the year
Other comprehensive loss
Total comprehensive loss
2023
2022
US$'000 US$'000
1,387
149,191
946
1,277
147,914
194,836
(18,177)
1,998
(45,524)
14,781
147,914
4,091
166,740
1,998
2,118
164,622
175,523
(4,977)
7,085
(30,534)
17,525
164,622
(14,990)
(13,200)
(28,190)
(14,283)
(596)
(14,879)
The parent entity has no capital commitments at the year-end (2022: US$Nil).
The parent entity entered into the following guarantee on June 26, 2017:
A Deed of Cross Guarantee with the effect that the Group guarantees debts in respect of one of its subsidiaries.
Further details of the Deed of Cross Guarantee and the subsidiaries subject to the deed are disclosed in Note 35.
UNLEASH POTENTIAL
99
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 35. DEED OF CROSS GUARANTEE
A consolidated income statement and consolidated balance sheet comprising the Company and controlled entities
which are a party to the Deed of Gross Guarantee (members of the “Closed Group”), after eliminating all transactions
between parties to the Deed of Gross Guarantee, are as follows.
Summarized income statement and statement of comprehensive income
and accumulated losses
Loss before income tax
Income tax benefit
Loss after income tax
Accumulated losses at the beginning of the financial year
Accumulated losses at the end of the financial year
Statement of financial position
Current assets
Cash and equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
Closed Group
2023
US$'000
2022
US$'000
(16,678)
171
(16,507)
(46,311)
(62,818)
(13,306)
1,516
(11,790)
(34,521)
(46,311)
4,271
30,523
2,865
-
6,353
25,755
3,076
8,810
37,659
43,994
7,585
15,276
91,114
4,392
4
5,707
12,542
97,293
5,623
4
118,371
121,169
156,030
165,163
UNLEASH POTENTIAL
100
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 35. DEED OF CROSS GUARANTEE (CONTINUED)
Current liabilities
Trade and other payables
Contract liabilities
Employee benefits
Other current liabilities
Other financial liabilities
Total current liabilities
Non-current liabilities
Contract liabilities
Employee benefits
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Issued capital
Share option reserve
Other reserves
Foreign currency reserve
Accumulated losses
Total Shareholders’ equity
2023
US$'000
7,477
5,773
1,991
5,486
389
2022
US$'000
3,206
6,229
2,268
1,794
140
21,116
13,637
740
158
-
34
932
1,109
133
-
-
1,242
22,048
14,879
133,982
150,284
194,836
14,781
(14,815)
1,998
(62,818)
175,523
17,525
7,085
(3,538)
(46,311)
133,982
150,284
The members of the Closed Group comprise Catapult Group International Limited and Catapult Sports Pty Ltd.
Catapult Group International Limited (the Company) and Catapult Sports Pty Ltd are party to a Deed of Cross
Guarantee dated June 26, 2017. Catapult International Pty Ltd joined the Deed of Cross Guarantee via a Deed of
Assumption dated March 29, 2021. The effect of the deed is that the Company has guaranteed to each creditor to pay
any deficiency in the event of the winding up of any of the controlled entities in the Closed Group. All entities in the
Closed Group have also given a similar guarantee in the event that the Company is wound up.
UNLEASH POTENTIAL
101
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 36. ACQUISITION OF SBG SPORTS SOFTWARE LIMITED
On July 1, 2021, Catapult completed the strategic acquisition of leading sports software video solutions provider, SBG
Sports Software Limited (‘SBG’). The Company acquired 100% of the issued share capital in SBG for a total price of
$40,000k-$45,000k, comprising $20,000k in cash, $20,000k in deferred Catapult shares and up to $5,000k in
Catapult shares which is subject to the achievement of agreed key performance indicators.
Consideration breakdown
Amount settled in cash
Amount settled in deferred shares (i)
Amount settled as contingent consideration (ii)
Other amounts
Amount settled in deferred shares (iii)
Amount settled as contingent consideration (iv)
Total
Fair value at acquisition
date US$'000
20,000
5,352
1,225
14,732
3,691
45,000
To be issued in instalments over the 12-month period commencing on the anniversary of completion
Subject to achievement of agreed key performance indicators, to be measured at the end of FY23 and FY24
(i)
(ii)
(iii) To be issued in instalments over the 12-month period commencing on the anniversary of completion, for several key employees of SBG
(recognized as share-based payments)
(iv) Subject to achievement of agreed key performance indicators, to be measured at the end of FY23 and FY24, for several key employees of SBG
(recognized as share-based payments)
The valuation of the acquisition was finalized and included in the financial statements for the year-ended March 31,
2022.
Contingent consideration
As part of the purchase agreement with the previous owners of SBG, a contingent consideration component has been
agreed, with up to $5,000k of Catapult shares available subject to the achievement of key performance indicators
which are aligned to the performance metrics used for the Executive team’s annual STI award. The $5,000k
contingent consideration is split into two tranches of $2,500k, with the first tranche expected to be calculated in June
2023 (at the time that Catapult’s Executive STI percentages are agreed) and the second tranche expected to be
calculated in June 2024 (at the time that Catapult’s Executive STI percentages are calculated).
A portion of the contingent consideration that pertains to several key employees of SBG is being recognized as share-
based payments in the accounts, of which $931k has been recognized as at March 31, 2023. The fair value of the
remaining contingent consideration at March 31, 2023 is $428k, of which $271k has been recorded in non-current other
liabilities.
An estimate of the range of total outcomes has been performed, based on entity’s key performance indicators being
achieved, such as the number of Customers, Annualized Contract Value (“ACV”) and Multi Vertical Customers, with a
range determined between 80% - 100% which may result in an earn-out of between $4,000k - $5,000k.
The contingent consideration has been remeasured at the reporting date, 31 March 2023. Refer to Note 37 for further
details.
Deferred share consideration
During the year ended March 31, 2023, Catapult issued 12,133,120 shares with a total value of $14,547K as part of the
deferred share consideration due in respect of the acquisition of SBG Sports Software Limited.
UNLEASH POTENTIAL
102
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 37. FAIR VALUE
Financial assets and financial liabilities are recognized in the consolidated statement of financial position when the
Group becomes a party to the contractual provisions of the financial instrument and are measured initially at fair
value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured
initially at fair value.
The following table presents a reconciliation of recurring fair value measurements for financial liability categorized
within level 3 of the fair value hierarchy:
Opening balance
Contingent consideration recognized from the acquisition of SBG
Remeasurement recognized in profit and loss
Closing Balance
Current
Non-current
Total
Fair value hierarchy
Financial Liability
Mar 2023
US$'000
1,225
-
(797)
428
157
271
428
Mar 2022
US$'000
-
1,317
(92)
1,225
-
1,225
1,225
All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy
based on the lowest level input that is significant to the fair value measurement as a whole, as follows:
•
•
•
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable
For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers
have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
Contingent consideration in relation to the SBG acquisition was classified as a financial liability measured at fair value
at the date of acquisition and subsequently remeasured at the reporting date with changes in fair value recognized in
profit or loss. The Group has adopted the deterministic payout approach associated with each possible outcome to
determine the fair value of the contingent consideration at the date of acquisition. The significant unobservable inputs
adopted by the Group were based on a combination of the entity’s key performance indicators being achieved, such
as the number of Customers, Annualized Contract Value (“ACV”) and Multi Vertical Customers with a range
determined between 80% - 100% and the probability of achieving each of the possible outcomes assessed. As at
March 31, 2023, the group has remeasured the fair value of the contingent consideration.
Based on the sensitivity analysis performed, a 20% increase/decrease in the share price of the company would have
the following impact on deferred consideration as at March 31, 2023:
•
Increase of 20% would increase the total contingent consideration liability by $86k to $514k.
•
Decrease of 20% would decrease the total contingent consideration liability by $86k to $342k.
UNLEASH POTENTIAL
103
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOTE 38. OTHER EXPENSES
The following information relates to the Group’s other expenses:
Software costs
Distributor commissions
Insurance
Bad debt expense
Recruitment costs
Other expenses
Total
2023
US$'000
2022
US$’000
3,070
599
574
565
523
2,609
2,086
545
568
502
1,866
2,438
7,940
8,005
NOTE 39. EVENTS AFTER THE REPORTING PERIOD
Bob Cruickshank was appointed as Chief Financial Officer of the Group effective April 3, 2023, Hayden Stockdale
transitions out of the role as of May 31, 2023.
The Company launched a new athlete monitoring solution, the Vector T7, on April 1, 2023. The device is 73% smaller
than its predecessor and delivers the most accurate and comprehensive player data in indoor environments, including
the Company’s proprietary “Basketball Movement Profile”.
No matter or circumstance has arisen since March 31, 2023, that has significantly affected, or may significantly affect,
the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in
future financial years.
UNLEASH POTENTIAL
104
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
DIRECTORS’ DECLARATION
In the opinion of the Directors of Catapult Group International Ltd:
➔ the attached financial statements and notes set out on pages 48 to 104 are in accordance with the Corporations
Act 2001, including:
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
giving a true and fair view of the consolidated entity’s financial position as at March 31, 2023 and of its
performance for the financial year ended on that date; and
➔ there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable; and
➔ at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed
Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the
deed of cross guarantee described in Note 35 to the financial statements.
The effect of the first bullet is that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001 from the
Chief Executive Officer and the Chief Financial Officer for the year ended March 31, 2023.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act
2001.
Dr Adir Shiffman
Executive Chairman
May 22, 2023
UNLEASH POTENTIAL
105
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S REPORT
UNLEASH POTENTIAL
106
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 8 Exhibition Street Melbourne VIC 3000 Australia GPO Box 67 Melbourne VIC 3001 Tel: +61 3 9288 8000 Fax: +61 3 8650 7777 ey.com/au Independent auditor’s report to the members of Catapult Group International Ltd Report on the audit of the consolidated financial report Opinion We have audited the consolidated financial report of Catapult Group International Ltd (the Company) and its subsidiaries (collectively the Group), which comprise the consolidated statement of financial position as at 31 March 2023, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 31 March 2023 and of its consolidated financial performance for the year ended on that date; and b. Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report.
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S REPORT
UNLEASH POTENTIAL
107
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 1. Going concern basis of preparation of financial statements Why significant How our audit addressed the key audit matter As disclosed in Note 2 of the financial report the financial statements have been prepared on a going concern basis. The Group’s earnings and cash flow forecasts indicate that to pay its debts as and when they fall due the Group requires access to the long-term debt facility with Western Alliance Bank, as disclosed in Note 19.2. Access to the loan facility is subject to ongoing compliance with the prescribed financial covenant as detailed in Notes 2 and 19.2. On 10 May 2023, the debt covenant hurdles under the facility were agreed for the period 1 June 2023 to 31 May 2024. As disclosed in Note 31.3 of the financial report Western Alliance Bank is a USA domiciled regional banking organisation and a participant in an industry that has been subject to financial institution closures and instability. As at the date of this report, the Group has drawn down all available funds under the facility and is holding these amounts as cash on hand. Assessing the appropriateness of the preparation of the financial statements on a going concern basis was considered a key audit matter due to the complex judgements required in assessing the Group’s forecast cashflows, availability of sufficient funding facilities and forecast covenant compliance. These assumptions are affected by future market and/or economic conditions. Our audit procedures included but were not limited to the following: • Analysing and challenging the key assumptions in the Group’s cash flow forecasts, such as cash inflows from expected subscription revenue growth and cash outflows relating to employee expenses, marketing and further development of the Group’s technology. • Assessing the Group’s access to the long-term funding facility having regard to the limit of the facility disclosed in Note 19.2 and compliance with the relevant financial covenant in the forecast period. • Comparing the inputs and assumptions in the cash flow forecasts to other information used to prepare the financial statements for the year ended 31 March 2023. • Assessing the possible mitigating actions identified by the Group in the event that actual cash flows are below forecast. • Performing sensitivity analysis to ascertain the extent of changes in those assumptions which either individually or collectively would materially impact the determination of the appropriateness of the going concern assumption. • Holding a discussion with an Authorised Representative of Western Alliance Bank in respect of the existing long-term debt facility and USA banking conditions, and sighting documentary evidence of the approval of the financial covenant for the period of 1 June 2023 to 31 May 2024. • Enquiring of management as to whether they are aware of any events or conditions through to the date of this report that may cast significant doubt on the entity’s ability to continue as a going concern. • Assessing the adequacy of the Group’s going concern basis of preparation disclosures within the financial statements.
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S REPORT
UNLEASH POTENTIAL
108
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 2. Revenue recognition and contract liabilities Why significant How our audit addressed the key audit matter The Group has the following key revenue streams: Subscription and service revenue Capital revenue As disclosed in Note 7 to the financial report, the Group’s revenue is primarily generated from subscription and service revenue from customers for the provision of access to software services, which may also contain the provision of associated hardware. The Group also generates other revenues through the sale of hardware video equipment which is recognised as capital revenue. The Group’s subscription and service revenues are accounted for as service contracts and the associated revenue is recognised over time. These contracts may be longer than 12 months in duration. Capital revenue is accounted for at a point in time, as and when the risks and rewards associated with the goods are transferred to the customer. Revenue recognition for these key revenue streams was considered a key audit matter due to the complexity and judgement contained in both short-term and long-term contracts involving both Software as a Service (“SaaS”) and multi element arrangements. The revenue recognition for such arrangements is complex and involves management judgement when identifying performance obligations within the agreements and allocating revenue to each performance obligation identified. Our audit procedures included the following: Assessing whether the revenue recognition policy applied by the Group to the terms and conditions of the revenue transactions was in accordance with AASB 15 Revenues from Contracts with Customers. Assessing whether the Group’s subscription agreement terms and conditions met the definition of service contracts so to recognise revenue over time. Testing the operating effectiveness of key controls over the capture, timing of revenue recognition and measurement of revenue transactions in relation to subscription and service revenue. For a sample of subscription and service revenue transactions, testing the revenue recognised together with the associated contract liability based on the terms of the subscription and service agreement. Assessing whether a significant financing component was identified on long-term contracts in relation to subscription and service revenue and considered whether any adjustment was required for those identified significant financing components. Performing data correlation analysis between the initial subscription and service contract liability to accounts receivable and cash, and between the contract liability and revenue. This included performing testing to supporting cash receipts for a sample of revenue transactions. For a sample of capital revenue transactions, we tested invoices to proof of delivery and receipt of cash. Evaluating the adequacy of the revenue recognition policy disclosures contained in Note 4.5.
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S REPORT
UNLEASH POTENTIAL
109
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 3. Capitalisation of development costs Why significant How our audit addressed the key audit matter As disclosed in Note 15 to the financial report the Group capitalises costs related to the internal development of software products. The carrying value of capitalised internally developed software at 31 March 2023 totalled US$36.5m. The accounting for capitalised software development involves management judgement, including: considering technical and commercial feasibility; the Group’s intention and ability to complete the intangible asset; future economic benefits to be generated by the asset; the ability of the Group to measure the costs reliably; and determining the useful lives for capitalised development costs. In addition, determining whether there is any indication of impairment of the carrying value of capitalised development costs requires judgement in making assumptions which are affected by future market or economic developments. This was considered a key audit matter given the significant judgement required in accounting for software development costs, the value of these assets relative to total assets, the rapid technological and economic changes in the software industry and the specific Australian Accounting Standards criteria that have to be met to enable costs incurred to be capitalised. Our audit procedures included the following: Assessing the eligibility of the development costs for capitalisation as an intangible asset in accordance with AASB 138 Intangible Assets. Selecting a sample of capitalised development costs by project and assessing whether the nature of the projects and costs incurred were supported by underlying evidence such as employee time sheets, employee contracts and the appropriate allocation of costs to the projects. Enquiring of project managers and developers to understand development activities undertaken and the feasibility of completion, and reviewing project plan approvals and reporting. Assessing whether the timing and amortisation rates used were appropriate. Considering whether there were any indicators of impairment, including project milestone assessments by management. Evaluating the adequacy of the disclosures in Note 15 to the financial report. Information other than the financial report and auditor’s report thereon The directors are responsible for the other information. The other information comprises the information that will be included in the Company’s 2023 annual report other than the financial report, comprising the financial statements, notes to the financial statements, directors declaration and our auditor’s report thereon. We obtained the directors’ report that is to be included in the 2023 annual report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual report after the date of this auditor’s report. Our opinion on the financial report does not cover the other information and we do not and will not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S REPORT
UNLEASH POTENTIAL
110
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
AUDITOR’S REPORT
UNLEASH POTENTIAL
111
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Audit of the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 21 to 32 of the Directors’ Report for the year ended 31 March 2023. In our opinion, the Remuneration Report of Catapult Group International Ltd for the year ended 31 March 2023, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Ernst & Young Ashley Butler Partner Melbourne 22 May 2023
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
SHAREHOLDER INFORMATION
Additional information required by the ASX Listing Rules and not disclosed elsewhere in this report is set out below.
1. NUMBER OF HOLDERS OF EACH CLASS OF EQUITY SECURITY (AS AT MAY 30, 2023)
Equity security class
Ordinary shares
Employee options and performance rights
Number of
holders
9,475
400
2. DISTRIBUTION SCHEDULE IN EACH CLASS OF EQUITY SECURITIES (AS AT MAY 30, 2023)
Ordinary Shares
Category (size of holding)
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 -
Employee options and performance rights
Category (size of holding)
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 -
Total
Holders
Number of
Shares
% of
Shares
3,753
3,709
1,009
934
70
2,032,885
9,443,071
7,549,588
23,055,419
0.87
4.03
3.22
9.84
192,270,425
82.04
9,475
234,924,764
100.00
Total
Holders
Number of
Units
11
121
96
149
23
7,740
346,728
722,651
3,862,757
9,894,271
% of
Units
0.05
2.34
4.87
26.04
66.70
400
14,834,147
100.00
3. UNQUOTED EQUITY SECURITIES
As at May 30, 2023, the number of unquoted equity securities that was on issue was 14,834,147, and the number of
holders was 400.
4. MARKETABLE PARCELS
Based on a closing price of A$1.0750 on May 30, 2023, the number of holders holding less than a marketable parcel
of the Group’s main class of securities (being fully paid ordinary shares) was 1,539.
5. VOTING RIGHTS ATTACHED TO EACH CLASS OF EQUITY SECURITY
At a general meeting, each ordinary shareholder present (whether in person, by proxy, or by representative) is
entitled to one vote on a show of hands and, on a poll, one vote for each fully paid ordinary share held.
Option and performance rights holders do not have voting rights.
UNLEASH POTENTIAL
112
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
SHAREHOLDER INFORMATION
6. SUBSTANTIAL SHAREHOLDERS
The Company has received notice of the following substantial shareholders as at May 30, 2023:
Substantial holder
Charlaja Pty Ltd; Charlaja Pty Ltd < Van De Griendt
Family A/C >; Igor Van De Griendt
Manton Robin Pty Ltd; Manton Robin Pty Ltd
< Shaun Holthouse Family A/C >; Shaun Holthouse
Quest Asset Partners Pty Ltd
MA Financial Group Limited
One Managed Investment Funds Limited
BNP Paribas Nominees Pty Limited
Date of last
notice
Number of
securities in last
notice
%
Sep 7, 2020
20,508,000
10.74
Sep 7, 2020
May 11, 2023
Dec 6, 2021
Apr 22, 2021
Oct 5, 2020
17,675,000
22,919,252
16,401,020
11,083,762
10,106,193
9.26
9.39
7.07
5.53
5.29
The above table sets out the number and percentage of securities held by substantial shareholders in the Company as disclosed in their last
substantial shareholder’s notice. Note that those shareholders may have acquired or disposed of securities in the Company since the date of that
notice. A substantial shareholder is only required to disclose acquisitions or disposals where there has been a movement of at least 1% in their
shareholding.
7. 20 LARGEST SHAREHOLDERS (as at May 30, 2023)
The 20 largest holders of ordinary shares and number of ordinary shares and percentage of capital held by each as
at May 20, 2023 are follows:
Rank
Shareholder
Shares Held % held
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CHARLAJA PTY LTD
MANTON ROBIN PTY LTD
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
ONE MANAGED INVESTMENT FUNDS LTD
B B H F PTY LTD
ONE MANAGED INVESTMENT FUNDS LTD
3RD WAVE INVESTORS PTY LTD
SOLIUM NOMINEES (AUSTRALIA) PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
SOLIUM NOMINEES (AUS) PTY LTD
NATIONAL NOMINEES LIMITED
PAYNE MEDIA PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
UBS NOMINEES PTY LTD
AOTEAROA INVESTMENT COMPANY PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
20
QSF NOMINEES PTY LTD
UNLEASH POTENTIAL
51,568,801
24,914,565
20,490,000
17,675,000
10,367,570
10,102,680
6,411,383
5,609,000
4,450,984
4,000,000
3,605,147
3,240,384
2,598,450
2,222,672
2,044,516
1,600,000
1,264,313
1,145,197
1,064,228
1,000,000
22.24
10.74
8.83
7.62
4.47
4.36
2.76
2.42
1.92
1.72
1.55
1.40
1.12
0.96
0.88
0.69
0.55
0.49
0.46
0.43
175,374,890
75.62
113
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
SHAREHOLDER INFORMATION
8. RESTRICTED SECURITIES, VOLUNTARY ESCROW SECURITIES (AS AT MAY 30, 2023)
As at May 30, 2023 Catapult had no restricted securities.
The securities subject to voluntary escrow at that date were as follows:
Class
Fully Paid Ordinary
Fully Paid Ordinary
Fully Paid Ordinary
Fully Paid Ordinary
Fully Paid Ordinary
Escrow End Date
Number of Units
July 3, 2023
October 3, 2023
January 3, 2024
April 3, 2024
July 3, 2024
2,426,624
2,426,624
2,426,624
2,426,624
2,426,624
12,133,120
9. ON MARKET BUY-BACK
There is no current on-market buyback.
10. CORPORATE GOVERNANCE STATEMENT
Catapult’s corporate governance statement for the period ended March 31, 2023 will be available at the following
URL: catapult.com/investor/corporate-governance/
UNLEASH POTENTIAL
114
CATAPULT GROUP INTERNATIONAL LTD
2023 ANNUAL REPORT
CORPORATE DIRECTORY
REGISTERED OFFICE
INVESTOR RELATIONS
Catapult Group International Ltd ABN 53 164 301 197
75 High Street, Prahran, VIC 3181, Australia
investor.relations@catapult.com
+61 400 400 380
Telephone: +61 (0)3 90958401
COMPANY SECRETARY
Jonathan Garland
AUDITOR
Ernst & Young
8 Exhibition Street, Melbourne
General Counsel and Company Secretary
VIC 3000, Australia
SHARE REGISTRY
Link Market Services Limited
Postal Address
Locked Bag A14
Sydney South NSW 1235
Australian Telephone: 1300 554 474
International Telephone: +61 1300 554 474
Fax: 02 9287 0303
linkmarketservices.com.au
CATAPULT ESP REGISTRY
Shareworks by Morgan Stanley
Solium Capital (Australia) Pty Ltd
Postal Address
Level 26, Chifley Tower, 2 Chifley Square
Sydney, NSW 2000
Australian Telephone: 1 800 768 002
International Telephone: +1 403 515 3909
shareworks.com
SECURITIES EXCHANGE LISTING
Catapult Group International Ltd’s shares are listed
on the Australian Securities Exchange (ticker: CAT)
WEBSITE
catapult.com
FIND US HERE
instagram.com/catapultsports/
linkedin.com/company/catapultsports
twitter.com/catapultsports
facebook.com/catapultsports/
youtube.com/user/catapultSports
UNLEASH POTENTIAL
115
C A T A P U L T . C O M