2023
Annual Report
GENEX FY2022 -- ANNUAL REPORT
GENEX POWER…
CLEAN ENERGY ON DEMAND…
Genex Power Limited is an Australian publicly listed company on the ASX (trading under the code ‘GNX’),
focused on developing a portfolio of renewable energy generation and storage projects across
Australia. Genex’s flagship asset is a 300MW clean energy hub in north Queensland, integrating large-
scale solar with pumped storage hydro, with plans to add a further 258MW in wind generation
capacity. The ‘Kidston Clean Energy Hub’ is a world first, innovative integration of intermittent
renewable energy with large-scale energy storage creating ‘Renewable Energy On Tap’. Genex also
owns and operates the 50MW Jemalong Solar Project, located near Forbes in NSW and is constructing
the 50MW/100MWh Bouldercombe Battery Project in central Queensland. With the acquisition of the
up to 2GW Bulli Creek Battery and Solar Project in south-east Queensland in August 2022, Genex has a
development pipeline of approximately 2.25GW of renewable energy and storage projects leaving it
well placed in its strategy to become a leading renewable energy and storage company in Australia.
Below: Kidston Clean Energy Hub, North Queensland
GENEX POWER FY2022 -- ANNUAL REPORT
CONTENTS
1. CHAIRMAN’S LETTER ................................................................................................................. 4
2. CHIEF EXECUTIVE OFFICER’S REVIEW OF OPERATIONS ............................................................9
3. ENVIRONMENTAL, SOCIAL AND GOVERNANCE STATEMENT ................................................... 15
3.1
Environment ................................................................................................................... 15
3.2 Climate change position ................................................................................................ 16
3.3 Social .............................................................................................................................. 18
3.4 Governance .................................................................................................................... 19
4. DIRECTORS’ REPORT ............................................................................................................... 20
5. AUDITOR’S INDEPENDENCE DECLARATION ............................................................................ 34
6. REMUNERATION REPORT (AUDITED) .......................................................................................35
6.1
Letter from the People and Remuneration Committee Chair ........................................ 35
6.2 Remuneration report overview ...................................................................................... 39
6.3 Remuneration governance............................................................................................. 39
6.4 Executive remuneration ............................................................................................... 40
6.5
Link between company performance and reward ........................................................ 45
6.6 Non-executive Director remuneration ......................................................................... 46
6.7
Executive Service Agreements ...................................................................................... 47
6.8 Statutory and share-based reporting ........................................................................... 48
7. CONSOLIDATED FINANCIAL STATEMENTS ............................................................................. 52
7.1
Consolidated Statement of Profit or Loss and Other Comprehensive Income ............. 53
7.2 Consolidated Statement of Financial Position ............................................................. 54
7.3 Consolidated Statement of Changes in Equity .............................................................. 55
7.4 Consolidated Statement of Cash Flows ......................................................................... 56
7.5 Notes to the Consolidated Financial Statements .......................................................... 57
8. DIRECTORS’ DECLARATION ..................................................................................................... 115
9.
INDEPENDENT AUDITOR’S REPORT ......................................................................................... 116
10. CORPORATE GOVERNANCE STATEMENT ............................................................................... 120
11. ASX ADDITIONAL INFORMATION ............................................................................................ 137
CORPORATE DIRECTORY ................................................................................................................ 141
GENEX FY2023 - ANNUAL REPORT
03
1. CHAIRMAN’S LETTER
Dear Shareholders,
On behalf of the Board of Directors of Genex Power Limited
(Genex), it is with great pleasure that I present to you the Annual
Report for the financial year ended 30 June 2023 (FY2023).
is quickly becoming a
With a diverse portfolio of renewable energy generation and
leading
storage projects, Genex
renewable energy and storage company in Australia. Our
projects span large-scale batteries, pumped storage hydro,
solar, and wind, and are expected to provide clean energy to
over 350,000 homes offsetting almost 2 million tonnes of CO2 per annum by 2025. We
continue to be proud of the contribution we are making to Australia’s clean energy transition.
We achieved a number of major milestones during the financial year, in particular the
energisation of our first battery energy storage project at Bouldercombe, which is our first
storage asset connected to the National Electricity Market (NEM).
FY2023 – Delivering on our projects
Genex achieved energisation for the 50MW/100MWh Bouldercombe Battery Project (BBP),
located near Rockhampton, Queensland in June 2023. This key milestone was delivered on-
time and within budget, demonstrating Genex’s ability to successfully manage complex
projects. Energisation has enabled commencement of the commissioning phase, ahead of
full operations before the summer season when electricity demand typically is at its peak.
The BBP is one of the first large-scale battery energy storage systems to be connected in
Queensland and will store and supply up to 35,200MWh per annum. It will also support the
security and reliability of the Queensland grid, while boosting the Company’s existing
revenue from our two operating 50MW solar projects at Kidston and Jemalong, which
continue to perform well.
Significant progress was also made on the construction of the flagship 250MW/2,000MWh
Kidston Pumped Storage Hydro Project (K2H) in Queensland, which is on track to be
energised toward the end of next year. Key work focused on the continued excavation of
the Main Access Tunnel, Power Station Cavern and supporting construction adits, alongside
the completion of the final preparation works for and commencement of liner placement
for the Wises Dam. Construction faced a modest delay when regulation drilling caused an
inflow of water in September 2022. To resolve the issue, the Main Access Tunnel was
rerouted however there is not expected to be a material impact on the scheduled timeline
for energisation in late calendar year 2024. K2H remains a critical project for the energy
GENEX FY2023 - ANNUAL REPORT
04
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
transition in Australia, as the first pumped storage hydro project to be connected to the
NEM in over 40 years, and the first to be developed and owned by a private sector participant.
Together with Electric Power Development Co., Ltd, (J-POWER), our 50% joint development
partner, Genex significantly progressed the development works for the Kidston Stage-3
Wind Project (K3W). Goldwind Australia has been appointed as the preferred Wind Turbine
Generator supplier and installer, submission of the grid connection application for the
project has been completed and the initial layout design and optimisation has been
significantly progressed. The total installed capacity of the project was increased from up
to 200MW to up to 258MW. The project constitutes the final stage of the Kidston Clean
Energy Hub, which represents a world first co-location of pumped storage hydro, wind and
solar technologies.
Genex completed the acquisition of 100% of the development rights for the Bulli Creek
Clean Energy Project (BCP) in August 2022, securing the next phase of the Company’s
growth. The project scope is for an up to 2GW, multi-stage battery and solar photovoltaic
development in south-east Queensland. The project is located adjacent to a major
Powerlink switching station on the Queensland-NSW Interconnector. Development will take
place over several stages and Genex has been advancing the design layouts for staging
options, while pursuing discussions with offtake counterparties to help inform the staging
strategy.
In June, Genex entered into a joint development agreement with J-POWER for a 50%
interest in the BCP, by way of upfront funding of up to $8.5 million, to fast-track
development activities at this exciting project. A final investment decision for stage one is
currently targeted for the second half of calendar year 2024.
Above: 50MW/100MWh Bouldercombe Battery Project, Central Queensland
GENEX FY2023 - ANNUAL REPORT
05
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
CEO succession
In May 2023, we announced the appointment of Craig Francis as Chief Executive Officer
(CEO) to replace James Harding who is retiring after five years as Genex’s CEO. Craig is an
experienced leader with deep knowledge of the energy sector. He joined the Company in
2017 to lead the commercial development of our portfolio and has been Chief Financial
Officer (CFO) since 2021. Craig takes up his role on 1 September 2023 with James continuing
to support Genex as a consultant following his retirement, to ensure a smooth transition
period. In August 2023, we announced the appointment of Patrick McCarthy as Genex’s CFO,
commencing in October 2023.
The Board would
like to acknowledge James’ significant contribution to Genex’s
development over the last seven years, including the last five as CEO. James led our
transition from an early-stage development company to a significant Australian renewables’
player with material revenue generation, an expanded portfolio of renewable and storage
assets and what is soon to be the first pumped storage hydro facility in Australia in over 40
years. We are grateful he is going to continue to assist the Company as a consultant as the
K2H project heads towards completion.
Proposed scheme of arrangement
In July 2022 Genex received a non-binding indicative proposal from a consortium of Skip
Essential Infrastructure Fund1 and Stonepeak Partners LLC2 to acquire all of the ordinary
shares on issue in Genex for $0.23 in cash per Genex share. This initial proposal was rejected
by the Board as we believed it undervalued Genex, and in August 2022 the consortium
submitted a revised non-binding indicative proposal at a price of $0.25 in cash per Genex
share. The Board, on careful consideration (and in consultation with its advisers), provided
the opportunity for the consortium to conduct due diligence.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Subsequently, the Company was advised in December 2022 that the consortium was not
intending to pursue its indicative proposal. Accordingly, the Board of Genex ceased all
discussions with the consortium in relation to its indicative proposal and a possible change
of control transaction. Skip Essential Infrastructure Fund has maintained its shareholding
in Genex.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
J-POWER funding
At the end of the financial year Genex entered into a $35 million corporate loan facility with
one of its major shareholders, J-POWER, with the proceeds to be applied as standby funds
to act as further support for the K2H construction contingency, and to replenish Genex
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
1 Skip Enterprises Pty Ltd as trustee for the Farquhar Trust
2 On behalf of certain of its managed funds and affiliated entities.
GENEX FY2023 - ANNUAL REPORT
06
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
working capital which was contributed to the K2H project in late 2022 following the water
ingress event in September 2022. The facility remained undrawn on 30 June 2023.
At the same time, the Company entered into a Joint Development Agreement with J-
POWER for the Bulli Creek Clean Energy Project, providing up to $8.5 million of funding, as
previously detailed.
Our people, communities, and the environment
On behalf of the Board, I would like to thank all of our employees and contractor workforce
for their contribution to the progress Genex made during the year.
We are proud of the role we play in creating job opportunities in our local communities,
including 900 jobs at Kidston, with a particular focus on diversity and Indigenous
engagement within our workforce and that of our contractors.
Genex embarks on extensive consultation through the life‑cycle of projects to ensure we
are responsive to our local communities, endeavouring to always act honestly and fairly.
We have a strict focus on minimising disturbance and a commitment to conserving and
protecting the environment, as illustrated by the “Recycling and Reuse Programme”
implemented at Kidston during the period.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
Above: Dawn at Kidston, North Queensland
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
07
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Outlook for FY2024
Looking ahead, with 400MW of committed projects, we have an enviable and diverse
renewable energy project portfolio and remain committed to advancing our 2.25GW
pipeline of projects. Our projects offer significant potential for growth and value creation,
and we are confident in our ability to continue to deliver value to our shareholders and
contribute to Australia’s transition to a clean energy future.
There is no doubt that Genex is well placed to become a leading renewable energy and
storage company in Australia.
Finally, on behalf of the Board, I would like to thank all shareholders for their continued
support over the last year.
Yours faithfully,
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
Dr Ralph Craven
Independent Non-executive Chairman
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
08
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
2. CHIEF EXECUTIVE OFFICER’S REVIEW OF OPERATIONS
As Chief Executive Officer (CEO) of Genex Power Limited
(Genex or the Company), I am pleased to present the Review of
Operations for the financial year ended 30 June 2023 (FY2023
or the Period). We reported several key developments over the
year, including continued construction milestones for the
250MW/2,000MWh Kidston Pumped Storage Hydro Project
(K2H), energisation of the 50MW/100MWh Bouldercombe
(BBP) and advancement of pipeline
Battery Project
development opportunities. These achievements have us well
on the path to becoming a leading renewable energy and
storage company in Australia.
Construction at K2H continued throughout the year, with key
recent work focused on continuing the excavation of the Main Access Tunnel (MAT), Power
Station Cavern, and supporting construction adits. Other progress included completion of
final preparation works for and commencement of liner placement for the Wises Dam. I am
pleased to report we continue to make good progress and remain on schedule for
energisation in 2H CY2024. While underground tunnelling activity was disrupted in late
September 2022 following an ingress of high pressure water due to an unexpected
geological feature, works have since progressed without further incident.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
K2H is our flagship project and is at the heart of our Kidston Clean Energy Hub. It will be the
first pumped storage hydro project to be developed in Australia in over 40 years, and the
first developed by the private sector. Alongside the currently-operating 50MW Kidston
Solar Project (KS1) it will create 300MW of renewable energy and storage capacity at Kidston,
with potential for further capacity through the advanced development of the 258MW
Kidston Stage 3 Wind Project (K3W).
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Beyond the Kidston Clean Energy Hub the fully-operational 50MW Jemalong Solar Project
(JSP), located in NSW, provides geographical diversification to our portfolio and generated
103,365MWh during the year (vs 107,561MWh in the previous year). In addition, our first large-
scale Battery Energy Storage System (BESS), the 50MW/100MWh Bouldercombe Battery
Project (BBP) in Central Queensland, achieved energisation on time and within budget, in
June 2023. This project is now in the commissioning phase and we expect it to be fully
operational ahead of the upcoming peak demand summer season. As the third project to be
brought online in our portfolio and the first storage project, we expect it to deliver another
step change in our revenues going into the 2024 financial year.
GENEX FY2023 - ANNUAL REPORT
09
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
BBP is our first BESS project and one of the first large-scale BESS projects to be connected
in Queensland. At completion it will store and supply up to 35,200MWh annually, and operate
under an innovative Autobidder Offtake Agreement with Tesla Motors Australia Pty Ltd
(Tesla), which will allow Genex to directly participate in revenue upside from significant
volatility and wholesale market pricing events, while providing a level of guaranteed revenue
to support project financing.
Genex also secured the next phase of our development pipeline during the Period, with the
completion of the acquisition of the development rights for the up to 2GW multi-stage Bulli
Creek Battery and Solar Project (BCP) in southern Queensland.
FY2023 was another productive year for Genex, and I would like to recognise the efforts of
all our staff in Sydney, Brisbane, and Kidston for their hard work and dedication as we
continue to deliver on the Company’s strategy.
250MW Kidston Pumped Storage Hydro Project (K2H)
FY2023 represented another year of significant construction progress at the flagship K2H
project, with the following major construction milestones:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
• Continued progression of the underground works, with the following key milestones
achieved:
o Completion of Construction Adit 01 and commencement of Power Station
Cavern excavation activities;
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
o Completion of the Power Station Cavern roof crown;
o Continued progression of the realigned MAT which was approximately 80%
complete at Period-end;
o Completion of excavation of two of the four vertical shafts (being the
including
the cable shaft) by
ventilation shaft and
reconfiguration of ventilation underground utilising the new ventilation shaft;
raiseboring,
• Completion of the bulk earthworks for the construction of the Wises Dam, with the
final preparation works being undertaken and liner placement having commenced at
Period-end;
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
• Commencement of dewatering activities from Eldridge Pit into the new Wises Dam;
• Completion of the manufacture of the primary mechanical and electrical
components for the underground power station by Andritz Hydro GmbH, with this
equipment now either delivered to site or en-route to Australia at Period-end;
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
• Significant advancement of the surface connection infrastructure including the
275kV switching station and transmission towers to connect the underground power
station to the Aurumfield (K2X) substation; and
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
10
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
• Completion of all final approvals and easement acquisitions by Powerlink
Queensland for the 186km long 275kV transmission line from Kidston to Guybal
Munjan (Mt Fox), with works significantly advanced on the Guybal Munjan and
Aurumfield (K2X) substations and route clearing activities well advanced.
Above: Underground Power Station Cavern, 250MW Kidston Pumped Storage Hydro Project, North Queensland
Despite a water ingress event in September 2022 requiring a realignment of the MAT, which
increased the overall cost of the K2H project by $10 million to $15 million (fully funded from
project contingency and cash reserves), since this time works have progressed without
further related incident. I would like to make special mention of the skill and effort with
which our project team managed this incident.
As at the date of this report, the K2H project remains on schedule for energisation in 2H
CY2024.
Solar portfolio – 50MW Kidston Solar Project (KS1) and 50MW Jemalong Solar Project
(JSP)
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The Period saw continued operation of KS1 and JSP, with both projects operating well
despite a prolonged La Niña weather event impacting irradiance levels on the east coast of
Australia. KS1 continued to perform well throughout the year as one of Australia’s leading
solar assets, delivering $11.27 million in total revenue from net generation of 115,175MWh
over the year.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
11
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Similarly, JSP performed well throughout the Period, generating renewable energy which is
sold into the National Electricity Market on a merchant basis. This project delivered $12.72
million in total revenue from net generation of 103,365MWh. Revenue was comprised of
$7.84 million from electricity sales and $4.88 million from large-scale generation
certificates for an average ‘bundled’ price of $123/MWh. Jemalong’s exposure to wholesale
electricity prices allows the asset to benefit from resilient pricing for both wholesale
electricity and large-scale generation certificates.
In August 2022, Genex completed the refinancing of the existing subordinated loan facility
with Clean Energy Finance Corporation for the KS1 and JSP projects, and drawdown of the
new $16 million subordinated loan facility with Infradebt Pty Ltd.
Above: 50MW Jemalong Solar Farm, Central NSW
50MW/100MWh Bouldercombe Battery Project (BBP)
The BBP is the first large scale BESS project which is being developed as part of the
Company’s strategy to broaden our footprint in energy storage beyond K2H. During FY2023
Genex completed the construction of the BBP, the first standalone large-scale battery
project in the Company’s portfolio, including completion of both the installation of 40
Megapack battery modules from Tesla and the physical connection works for the Tesla
Megapacks to the Powerlink Queensland Bouldercombe Substation.
Crucially, the project achieved the significant milestone of energisation in June 2023, and
is now on track to commence full operations before the upcoming peak-demand summer
season. As at the date of this report, the BBP is undergoing final commissioning and
remains within budget.
GENEX FY2023 - ANNUAL REPORT
12
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
258MW Kidston Stage 3 Wind Project (K3W)
During FY2023 Genex, alongside its 50% joint development partner Electric Power
Development Co., Ltd (J-POWER), continued to advance the K3W project, with Goldwind
Australia selected as the preferred Wind Turbine Generator supplier and installer. Following
feasibility studies, it was decided to increase project capacity from up to 200MW to up to
258MW, and the grid connection application was lodged with Powerlink Queensland in
December 2022. K3W was also declared a Prescribed Project by Queensland Government in
early CY2023, which will allow Genex and J-POWER to expedite the approvals processes for
the project.
Genex continues to advance the development workstreams for the K3W project with a view
to making a final investment decision in CY2024.
Funding
In June 2023, Genex announced two material transactions with major shareholder J-
POWER. The first was a new $35 million corporate loan facility, with the proceeds to be
applied as additional standby contingency funding to support the completion of the K2H
project and replenishment of working capital, following the water ingress event in
September 2022. The second transaction involved Genex entering into a joint development
agreement with J-POWER for a 50% interest in the BCP, which provided for upfront funding
of up to $8.5 million and a further $1 million in contributions to Genex by way of a
development funding agreement.
As at 30 June 2023 Genex is fully funded to completion of construction of the BBP and the
K2H projects, while having sufficient working capital to continue to advance its portfolio
development activities.
Acquisition of up to 2GW Bulli Creek Clean Energy Project (BCP)
In August 2022, Genex announced that it had completed the acquisition of 100% of the
development rights for the BCP, which represents an up to 2GW, multi-stage battery and
solar photovoltaic development in south-east Queensland. The project was selected based
upon its proximity to the Queensland-NSW Interconnector, strong marginal loss factors and
significant scalable development potential. Per the above funding commentary, Genex is
now jointly progressing development of multiple stages of the project alongside J-POWER,
with a final investment decision for stage one currently targeted for 2H CY2024.
Summary and outlook
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
In summary, FY2023 has been another pivotal year for the Company as we made good
progress on construction of our flagship project and achieved energisation of our first
battery storage project. As we move in to FY2024, we continue to focus on:
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
13
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
• The continued and safe progression of construction activity at the K2H project;
• Completion of commissioning and full commercial operation of the BBP, expected
ahead of the upcoming peak-demand summer season;
• Progression of the K3W project as the next stage of the Kidston Clean Energy Hub,
as development workstreams continue to advance with a view to making a final
investment decision in CY2024;
• Jointly progressing further development of multiple stages of the BCP alongside J-
POWER, with a final investment decision for the first stage currently targeted for 2H
CY2024; and
• New business and project opportunities that are consistent with the Genex
development strategy.
I would again like to acknowledge the support received from the Federal Government,
through the Northern Australia Infrastructure Facility and Australian Renewable Energy
Agency, and also the Queensland State Government’s support of the Kidston Clean Energy
Hub.
As announced on 10 May 2023, I am retiring as CEO of Genex on 31 August 2023 after five
years in the role, handing over to our current Chief Financial Officer, Craig Francis, who
commences in the role from 1 September 2023. I would like to take the opportunity to
express my sincere thanks to the Genex Board, the staff who have driven our outstanding
achievements, and our shareholders for their support over the past five years and into the
future. I am confident that I am leaving the Company in highly capable hands with Craig as
CEO, and I look forward to supporting him and the Genex team in delivering another
successful year in FY2024.
Yours faithfully,
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
James Harding
Chief Executive Officer
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
14
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
3. ENVIRONMENTAL, SOCIAL AND GOVERNANCE STATEMENT
As a leading developer and operator of renewable energy generation and storage projects,
Genex Power Limited (Genex or the Company) is committed to the highest standards of
Environmental care, Social responsibility, and good Governance (ESG). Genex is pleased to
present the Company’s ESG Statement to our shareholders, summarising our commitment
to maintaining the high standards of sustainability we have set and further improving how
our business decisions and policies address opportunities to enhance sound ESG practises.
The Company has developed a ‘Genex sustainability relationship framework’ which outlines
its ESG values, the relationship with the adopted Global Reporting Initiatives and
Sustainable Development Goals as well as the relevant ASX Corporate Governance
Principles.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
3.1 Environment
We are a proud developer of sustainable renewable energy generation and storage projects.
By 2025 our portfolio is expected to provide clean energy to over 350,000 homes while also
removing almost 2 million tonnes of CO2 per annum that would otherwise be emitted from
the burning of fossil fuels. The further delivery of our up to 2.25GW development pipeline
will provide a major step-change in our CO2 abatement toward 2030 and beyond.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
We are deeply cognisant of the unique local environments in which we operate. We have a
strong focus on minimising the disturbance we create in our operations by:
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
15
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
• Committing to conserving and protecting the environments in which we operate, as
illustrated by the ’Recycling and Reuse Programme’ which is being implemented at
the Kidston Clean Energy Hub;
• Rehabilitating a disused mine site to develop the sustainable and productive Kidston
Clean Energy Hub;
•
Increasing our focus on responsible sourcing of raw materials used in the
construction of our assets; and
• Taking a careful approach to minimising our impact on ecology and cultural heritage
in the development footprints of our pipeline projects.
3.2 Climate change position
Genex supports the Paris Agreement and its central aim to keep a global temperature rise
this century well below 2 degrees celsius above pre-industrial levels and to pursue efforts
to limit the temperature increase even further to 1.5 degrees celsius. This includes support
for Australia’s updated Nationally Determined Contribution commitment made under the
Paris Agreement to reduce greenhouse gas emissions by 43 percent below 2005 levels by
2030 which will put Australia on track to achieve net zero emissions by 2050. Genex will
contribute by aiming to achieve 2 million tonnes of CO2 abatement by 2025 through the
development of its committed project portfolio.
Genex has developed a Sustainability Management Plan (SMP) which is being used to guide
the Company in achieving its sustainability goals which will align with those in the Paris
Agreement.
The SMP outlines the journey on which the Company will embark over a 3-year period,
commenced in 2023, consisting of 6 phases:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
• Phase 1: Initial (Seeking clarity): Understanding sustainability at the Company. The
goal is to be a sustainable business, increase shareholder value, and convince
shareholders and other key stakeholders of the benefits of embarking on the
sustainability journey;
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
• Phase 2: Developing (Enabling compliance): Sustainable system development.
Outline the role of sustainability champions within the Company for crucial visible
leadership, and determine performance measurement (key performance indicators
in accordance with global reporting initiative);
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
• Phase 3: Engaging (Solicit engagement): Ensure business case is understood.
Ensure that sustainability initiatives are seen as investment opportunities (assess
feasibility for each initiative). Sustainability being internalised among people and key
processes;
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
16
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
• Phase 4: Optimising (Embed sustainability): Enhanced business value is created
through sustainability initiatives. Sustainability is intrinsically linked to key business
strategies with innovative approaches to sustainability;
• Phase 5: Transforming (Review performance): Recognised leaders in sustainability,
commitment to sustainability is associated with the Genex brand. Sustainability is
ingrained in our daily thinking and operating methods; and
• Phase 6: Reporting (Communicate): Develop reporting framework, determine
reporting data, and develop sustainability report.
As part of the SMP, a sustainability relationship framework for ESG performance
measurement has been established. The Company has identified 9 Global Reporting
Initiatives (GRIs) and 7 Sustainable Development Goals (SDGs) which will be implemented as
part of Phase 1 of the ESG journey. Reporting on Company performance will take place as
part of Phase 6 of the ESG journey and is anticipated to be realised in 2025.
ESG
Performance
Genex Values
Global Reporting
Initiatives (GRI)
Environment
Strong
Commitment
Building
Resilience
Performance
Excellence
GRI 302-1 Energy
GRI 303-5 Water
GRI 306-2 Waste
Social
Governance
Create Awareness
Positive Attitude
Gaining Respect
Team Approach
Group
Accountability
Stakeholder
Ethics
Focused
Determination
Individual Integrity
GRI 403-2 OHS Management
its continual
system and
improvement.
GRI 403-6 Promotion of
worker health (and services
available)
employee
e.g.,
assistance
GRI 201-1 Direct economic
value generated – community
investments
GRI 419 - Non-compliance
with laws and regulations in
the social and economic area
- Disclosures 101, 2 and 3
GRI 205 - Anti corruption
GRI 206 - Legal actions for
anti-competitive behaviour,
and monopoly
anti-trust,
practices
Sustainable
Development
Goals (SDG)
SDG7 – Affordable
and clean energy
SDG 13 – Climate
Action
SDG14 – Life below
water
SDG15 – Life on land
SDG3 – Good health
and well-being
SDG11 – Sustainable
cities
and
communities
SDG16
Peace,
–
justice, and strong
institution
ASX Corporate
Governance Principles
for
Principle 1:
Lay
foundations
solid
management and oversight.
Principle 2:
Structure the board to add value.
Principle 3:
Promote ethical and responsible
decision-making.
Principle 4:
Safeguard integrity in financial
reporting.
Principle 5:
Make
disclosure.
Principle 6:
Respect
shareholders.
Principle 7:
Recognise and manage risk.
Principle 8:
Remunerate
responsibility.
balanced
timely
rights
fairly
and
and
the
of
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The sustainability relationship framework for ESG performance measurement is subject to
change resulting from new or updated legislation, Company growth, shareholder, and
investor opportunities.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
17
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
3.3 Social
We understand the fundamental importance of our social license to operate as an essential
service provider in the transition to a net zero emissions energy future. Providing a safe
working environment for our employees and contractors to work in, respecting the
traditional owners of the land on which we operate, and helping to develop regional
Australia, principally far north Queensland, are high priorities.
Job creation in our local communities
We are an equal opportunity employer in accordance with our Diversity Policy and as such,
the Company does not discriminate based on racial origin, gender, age, ethnicity, marital
status, disability, religious or philosophical beliefs, sexual preference or political affiliation.
We have a strong focus on job creation in the local communities in which we operate, by way
of:
• Our Indigenous Engagement Strategy at the Kidston Clean Energy Hub, which is
promoting Indigenous employment and procurement at the 250MW/2,000MWh
Kidston Pumped Storage Hydro Project (K2H);
• 900 jobs which have been created around the Kidston Clean Energy Hub and along
the transmission route to Guybal Munjan (Mt Fox) as part of the construction of the
K2H project;
• 42 jobs which were created during the construction of the 50MW/100MWh
Bouldercombe Battery Project;
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
•
•
151 jobs which were created for the construction of the 50MW Jemalong Solar
Project, comprising 68% local, 22% female and 11% Indigenous personnel; and
170 jobs which were created during construction at the 50MW Kidston Stage 1 Solar
Project, comprising 35% female and 15% Indigenous personnel.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
The Indigenous population in the Kidston region is defined as the Ewamian People #3 and
is represented by Ewamian Limited. Genex has maintained strong engagement with
Ewamian Limited through the development of its projects at Kidston to date. As part of the
development of the K2H project, Genex and Ewamian Limited developed an Indigenous
Engagement Strategy to drive Indigenous employment and general engagement in the
project. In accordance with this strategy a Sponsorship Agreement was developed between
Ewamian Limited and Genex which provided for a contribution of $536,500 by the Company
towards funding the Talaroo Hot Springs Tourism Development.
Genex continues its close relationship with Ewamian Limited through its development of
the 258MW Kidston Stage 3 Wind Project, including close engagement and collaboration on
cultural heritage matters during design development.
GENEX FY2023 - ANNUAL REPORT
18
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
3.4 Governance
Genex is committed to high standards of corporate governance. The Genex Board is
responsible for Genex corporate governance and compliance. The Board’s guiding principle
in meeting this responsibility is to act honestly, conscientiously and fairly, in accordance
with the law, in the interests of shareholders, employees and other stakeholders.
Genex has adopted a Board Charter to give formal recognition of the Board’s role and
responsibilities and to specify how the Company is governed to promote Genex and protect
the interests of shareholders, employees and the broader community. Genex has developed
and implemented a suite of policies and codes of conduct to support our drive towards a
culture of ethical business behaviour and responsible corporate activity. A select number
of these policies provides as follows:
• An Audit and Risk Management Committee Charter to assist the Board of Directors
of the Company in fulfilling its financial, risk management and general oversight
responsibilities;
• A Code of Conduct relating to the Company’s obligations to stakeholders where we
endeavour to be recognised as an organisation committed to the highest ethical
standards in business and the communities in which we operate. This incorporates
our responsibilities to shareholders and the financial community, employment
practices, fair trading and dealing, responsibilities to the individual, the community
and compliance with all provisions of the Company’s Constitution, the Corporations
Act 2001, the ASX Listing Rules and all other applicable rules and legislation;
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
• A Securities Trading Policy which imposes constraints on key management
personnel, as that term is defined in the Remuneration Report, and which extends to
other senior personnel, in relation to dealing in the Company’s shares or options,
warrants, futures or other derivative financial products issued over or in respect of
the Company’s shares or options;
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
• A Continuous Disclosure Policy placing obligations and procedures on all Directors,
employees and consultants of the Company to ensure the timely and balanced
disclosure of all material matters concerning the Company in accordance with the
ASX Listing Rules; and
• A Sustainability and Climate Change Policy which ensures the actions of the
Company support its ability to demonstrate sustainability leadership and create
long-term value for its shareholders and other stakeholders, and that the Company
is committed to taking actions to assess and reduce its climate change impact.
Each of the Company’s corporate policies is reviewed and updated annually, with the latest
versions available at its website: www.genexpower.com.au.
GENEX FY2023 - ANNUAL REPORT
19
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
4. DIRECTORS’ REPORT
The Directors present their report, together with the consolidated financial statements, of
Genex Power Limited consisting of Genex Power Limited (referred to hereafter as ‘Genex’,
the ‘Company’ or ‘Parent Entity’) and the entities it controlled at the end of, or during, the
twelve-month period ended 30 June 2023 (the ‘Period’) (referred to hereafter as the
‘Consolidated Entity’).
Directors
The following persons were Directors of Genex during the whole Period and up to the date
of this report, unless otherwise stated:
Dr. Ralph Craven
Ms. Teresa Dyson
Mr. Simon Kidston
Mr. Ben Guo
Mr. Kenichi Seshimo
Mr. Yongqing Yu (retired 30 November 2022)
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
Company Secretary
Mr. Justin Clyne (retired 31 December 2022)
Mrs. Ana Gomiero-Guthrie (appointed 21 December 2022)
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Biographies of each of the current Directors and Company Secretary are detailed below.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Name: Dr. Ralph Craven
Title: Independent Non-executive Chairman
Qualifications: BE PhD, FIEAust, FIPENZ, FAICD
Special Responsibilities: Member of the Audit and Risk Management
Committee and Chair of the People and Remuneration Committee
Other Current Directorships:
None
Former Directorships (last 3 years):
AusNet Services Limited (from 2014 to 2022)
Senex Energy Limited (from 2011 to 2022)
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
Experience and expertise:
Dr. Craven has been a full time non-executive director for over 15 years. He has broad experience in
energy, resources, infrastructure and agribusiness. He has served on the boards of many companies,
both listed and unlisted. His professional background encompasses electricity and gas businesses,
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
20
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
mining, commodities trading, the management of large-scale system operations at the national
level and the delivery of major infrastructure projects. As a young engineer Dr. Craven was involved
in the commissioning of the 500MW Wivenhoe Pumped Storage Hydro power station in southeast
Queensland and the planning of the transmission required to integrate the power station into the
Queensland high voltage network. He was also an early participant in the introduction of renewables
into the National Electricity Market as a non-executive director on the Windlab board prior to it being
listed on the ASX.
Dr. Craven was a Non-executive Director of Senex Energy Limited (ASX: SXY) for over 10 years and
AusNet Services Limited (ASX: AST) for over 8 years. Both these companies were taken over via
Schemes of Arrangement in early 2022. Some of his previous roles include being a Non-executive
Director and Chairman of Tully Sugar, Ergon Energy Corporation Limited and Stanwell Corporation
Limited, Non-executive Director and Deputy Chairman of Arrow Energy Limited, Non-executive
Director of Mitchell Services Limited and for six years a Non-executive Director on the Council Board
of the International Electrotechnical Commission.
Dr. Craven has international experience from roles in Switzerland, Canada and as Chief Executive
Officer of Transpower New Zealand Limited. Other senior executive roles included being General
Manager of Shell Coal Pty Ltd and Executive Director of NRG Asia Pacific Limited.
Name: Teresa Dyson
Title: Non-executive Director
Qualifications: LLB (Hons), BA, MTax, MAppFin, GAICD
Special Responsibilities: Chair of the Audit and Risk Management Committee
and Member of the People and Remuneration Committee
Other Current Directorships:
Seven West Media Limited (from 2017)
Shine Justice Limited (from 2020)
Entyr Limited (from 2023)
Former Directorships (last 3 years):
None
Experience and expertise:
Teresa is a Non-executive Director and Audit and Risk Committee Chair of ASX-listed Seven West
Media Ltd (2017 – present) and Shine Justice Ltd (ASX: SJL) from February 2020 to present and a
Non-executive Director of Entyr Ltd (ASX: ETR) from February 2023. Teresa is also a Director of
Energy Qld Ltd, Brighter Super, National Housing Finance and Investment Corporation and the Gold
Coast Hospital and Health Board. She is a member of the Takeovers Panel and a former member of
the Foreign Investment Review Board. Teresa has broad legal experience across infrastructure,
financial structuring, social infrastructure and taxation law. Teresa has previously been Chair of the
Board of Taxation and a Partner of Ashurst and Deloitte and was named Woman Lawyer of the Year
in 2011 by the Women Lawyers Association of Queensland.
GENEX FY2023 - ANNUAL REPORT
21
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Name: Simon Kidston
Title: Non-executive Director
Qualifications: BCom, GradDipAppFin, MAICD
Special Responsibilities: Member of the People and Remuneration Committee
Other Current Directorships:
Lithium Plus Minerals Limited (from 2021)
QC Copper and Gold Inc. (from 2022)
Q Mines Limited (from 2023)
Former Directorships (last 3 years):
None
Experience and expertise:
Simon is the co-founder of Genex. He has a track record of building companies including the
successful ASX-listing of Endocoal Limited and Carabella Resources Limited.
In addition, Simon has more than 30 years’ investment banking experience in Australia and overseas
with groups such as Macquarie Bank Limited, HSBC and Helmsec Global Capital Limited. During this
period, he assisted companies to grow by accessing capital, negotiating strategic relationships and
undertaking acquisitions. He has a Bachelor of Commerce degree and is a Member of the Australian
Institute of Company Directors.
Name: Ben Guo
Title: Non-executive Director
Qualifications: BCom, Finance (Hons 1st) and Accounting
Special Responsibilities: None
Other Current Directorships:
None
Former Directorships (last 3 years):
None
Experience and expertise:
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Ben has over 10 years’ management experience in Australia. He was a founding director of Genex
where he held the position of CFO until 2021. Ben is currently a director of Permagen, a carbon
project development business based in Australia. Prior to joining Genex, he was a director at
Helmsec Global Capital Limited as well as being the CFO of Estrella Resources Limited.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
22
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Name: Kenichi Seshimo
Title: Non-executive Director
Qualifications: BSc, Electrical Engineering (KEIO University)
Special Responsibilities: Member of the Audit and Risk Management Committee
Other Current Directorships:
None
Former Directorships (last 3 years):
None
Experience and expertise:
Kenichi has worked in the electric power development and energy industry, in different countries,
for more than 30 years. He commenced his career with a leading Japanese trading company where
he was involved in various international electric power projects. This included a period based in Ho
Chi Minh City, Vietnam as project manager responsible for the delivery of a gas combined cycle
development.
Kenichi has been working with Electric Power Development Co., Ltd (J-POWER) since 2004. During
his time at J-POWER, Kenichi has been involved in a number of project development and
management roles including as a Non-executive Director with CBK (750MW), a pumped storage
hydro power project company based in the Philippines, a Non-executive Director of the Chia Hui gas
fired power project company (450MW) in Taiwan, Chief Executive Officer of PT Bhimansena Power
Indonesia responsible for the delivery of 2 x 1,000MW ultra super critical coal thermal power projects
(project cost US$4 billion) in Indonesia and more recently as Chief Operating Officer of J-POWER
Australia Pty Limited.
Name: Ana Gomiero-Guthrie
Title: General Counsel and Company Secretary
Qualifications: PGDIP (University of Sydney), LLM (King’s College London and
IBMEC Sao Paulo), LLB (Universidade de Sao Paulo – USP)
Experience and expertise:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Ana has more than 15 years’ experience advising on corporate and banking and finance transactions,
with a focus on project and infrastructure finance across wind, solar, battery and pumped hydro.
She was previously a Special Counsel with global law firm Baker & McKenzie in Sydney, Chicago and
Sao Paulo and was a partner and head of the banking and finance team at a Brazilian law firm. Ana
has practiced in Australia, Brazil and the United States. She joined Genex as General Counsel in
November 2021 and became Genex’s General Counsel and Company Secretary in 2022.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
23
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Dividends
There were no dividends paid, recommended or declared during the current or previous
financial year.
Principal activities
The Consolidated Entity’s principal activities during the Period comprised the operation of
the 50MW Kidston Stage 1 Solar Farm (KS1) in Queensland and the 50MW Jemalong Solar
Project (JSP) in NSW, the construction of the 250MW/2,000MWh Kidston Pumped Storage
Hydro Project (K2H) and the 50MW/100MWh Bouldercombe Battery Project (BBP), and the
development of the 258MW Kidston Stage 3 Wind Project (K3W) and up to 2GW multi-stage
Bulli Creek Clean Energy Project (BCP), with all four projects located in Queensland.
Operating and financial review
Financial review
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
For the period ended 30 June 2023, the Consolidated Entity’s net loss after taxation
attributable to the members of Genex was $1,027,645 (FY2022: net loss of $4,063,429) and
the total comprehensive loss attributable to the members of Genex was $732,366 (FY2022:
total comprehensive gain of $19,734,428). The Directors of Genex have resolved not to
recommend a dividend for the period ended 30 June 2023.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The loss per share for the Consolidated Entity for the Period was 0.07 cents per share
(FY2022: loss of 0.35 cents).
A summary of the financial performance and position of the Consolidated Entity during the
Period is as follows:
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
• Revenue and other income of $24.65m, a decrease of 9% versus the prior
corresponding period (FY2022: $27.19m), was driven by a return to more stable
pricing in wholesale electricity markets and the absence of one-off revenue items
observed in the prior period;
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
• Net loss before tax of $1.03m, driven by lower revenues and one-off costs associated
with corporate activity during the period, offset by improved cost control (FY2022:
net loss of $4.06m); and
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
• Cash and cash equivalents as at 30 June 2023 of $49.59m (30 June 2022: $62.85m),
excluding term deposits or bank guarantees, leaves the Consolidated Entity well
positioned to continue to progress the construction of K2H and BBP, and the
advancement of the K3W project at the Kidston Clean Energy Hub and the BCP in
southern Queensland.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
24
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Solar portfolio review (KS1 and JSP)
The Period saw continued operation of KS1 and JSP, with both projects operating well
despite persisting La Niña weather patterns. Generation performance for the Period is
summarised as follows:
• KS1 generated 115,175MWh, a 1% decrease on the prior corresponding period
(FY2022: 115,957MWh); and
• JSP generated 103,365MWh, a 4% decrease on the prior corresponding period
(FY2022: 107,561MWh); and
• Both solar farms underperformed the prior corresponding period largely as a
consequence of a prolonged La Niña weather event impacting irradiance levels on
the east coast of Australia.
K2H review
During the Period, Genex made significant advancements in the construction of its flagship
K2H project, with principal activities focused on underground excavation works, the Wises
Dam works and the associated transmission infrastructure to connect the project to the
National Electricity Market.
On 25 September 2022, Genex’s engineering, procurement and construction (EPC)
contractor encountered high pressure water in the underground workings via two drill-
holes at the Main Access Tunnel (MAT) face, where a zone of high quality but fractured rock
appeared to be encountered. This resulted in a period of ceased excavation activity while
the underground workings were dewatered and the drill-holes plugged, before activities
resumed on the critical path excavation of Construction Adit 01 to allow access for
commencement of excavation of the Powerhouse Cavern. After a program of reverse cycle
diamond drill exploration boreholes were completed underground, it was determined by
Genex and its EPC contractor that the best course of action was to re-design the path of the
MAT away from the zone into safer geology. This resulted in a realignment of the MAT and
an overall increase in the cost of the K2H project by $10 million to $15 million, which was fully
funded from project contingency and Genex cash reserves. Since this time, the works have
progressed without further incidence of high pressure water underground.
Notwithstanding this event, the Company continued to make significant progress on the
construction of the project, having reached the following major construction milestones:
• Continued progression of the underground works, with the following key milestones
achieved:
o Completion of Construction Adit 01 and commencement of Power Station
Cavern excavation activities;
o Completion of the Power Station Cavern roof crown;
GENEX FY2023 - ANNUAL REPORT
25
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
o Continued progression of the realigned MAT which was approximately 80%
complete at Period-end;
o Completion of excavation of two of the four vertical shafts (being the
including
the cable shaft) by
ventilation shaft and
reconfiguration of ventilation underground utilising the new ventilation shaft;
raiseboring,
• Completion of the bulk earthworks for the construction of the Wises Dam, with the
final preparation works being undertaken and commencement of liner placement
having occurred at Period-end;
• Commencement of dewatering activities from Eldridge Pit into the new Wises Dam;
• Completion of the manufacture of the primary mechanical and electrical
components for the underground power station by Andritz Hydro GmbH, with this
equipment now either delivered to site or en-route to Australia at Period-end;
• Significant advancement of the surface connection infrastructure including the
275kV switching station and transmission towers to connect the underground power
station to the Aurumfield (K2X) substation; and
• Completion of all final approvals and easement acquisitions by Powerlink
Queensland for the 186km long 275kV transmission line from Kidston to Guybal
Munjan (Mt Fox), with works significantly advanced on the Guybal Munjan and
Aurumfield substations and route clearing activities well advanced.
As at the date of this report, the K2H project remains on schedule for energisation in 2H
CY2024.
BBP review
During the Period, Genex also significantly advanced the construction of the BBP, the first
standalone large-scale battery project in the Company’s portfolio, with the following major
milestones achieved:
• Completion of the installation of the 40 Megapack battery modules from Tesla
Motors Australia Pty Ltd (Tesla);
• Completion of the physical connection works for the Tesla Megapacks to the
Powerlink Queensland Bouldercombe Substation; and
•
In June 2023, successful energisation was achieved for the project within schedule
and budget.
As at the date of this report, the BBP is undergoing final commissioning and remains within
budget.
GENEX FY2023 - ANNUAL REPORT
26
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
K3W review
During the Period, alongside
joint development partner Electric Power
Development Co., Ltd (J-POWER), Genex continued to advance the K3W project, with the
following key milestones achieved:
its 50%
• Selection of Goldwind Australia as preferred Wind Turbine Generator supplier and
installer;
• Following continued feasibility studies, a decision was taken to increase the project
capacity from up to 200MW to up to 258MW; and
• Lodgement of the grid connection application with Powerlink Queensland.
Genex continues to advance the development workstreams for the K3W project with a view
to making a final investment decision in CY2024.
Other material events during the Period
Other material events which occurred during the Period included:
• On 10 August 2022, Genex completed the acquisition of the BCP;
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
• On 16 August 2022, Genex completed the refinancing of the existing subordinated
loan facility with Clean Energy Finance Corporation for the KS1 and JSP projects, and
drawdown of the new $16 million subordinated loan facility with Infradebt Pty Ltd;
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
• On 25 July 2022, the Company received a non-binding indicative proposal from a
consortium of Skip Essential Infrastructure Fund3 and Stonepeak Partners LLC4 (the
Consortium) for the acquisition of 100% of Genex shares at a price of $0.23 per
share. Since the proposal was received:
o On 1 August 2022, Genex announced that its Board had rejected the proposal
on the basis that it undervalued Genex and therefore was not in the best
interest of shareholders, but that it was willing to engage constructively with
the Consortium to explore whether the Consortium could submit a revised
proposal that was capable of being recommended to Genex shareholders by
the Board;
o On 17 August 2022, Genex announced that it had received a revised non-
binding indicative proposal from the Consortium for the acquisition of 100%
of Genex shares at a price of $0.25 per share and otherwise on similar terms
to the
initial proposal. The announcement noted that after careful
consideration of the revised proposal (including consultation with Genex’s
advisers), the Board considered that it was in the interests of Genex
shareholders as a whole to engage further with the Consortium. Accordingly,
3 Skip Enterprises Pty Ltd as trustee for the Farquhar Trust
4 On behalf of certain of its managed funds and affiliated entities.
GENEX FY2023 - ANNUAL REPORT
27
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
the Board decided to provide the Consortium with the opportunity to conduct
confirmatory due diligence in order to assist the Consortium to provide a
binding proposal to the Board. The provision of due diligence was on a non-
exclusive basis and subject to the terms of a confidentiality agreement
between the Consortium and Genex; and
o On 28 December 2022, Genex announced that after a prolonged period of due
diligence that the Consortium had failed to submit a binding offer to the Board
and as a result the Board had terminated discussions with the Consortium;
• On 10 May 2023, Genex announced that James Harding would retire as Chief
Executive Officer (CEO) as of 31 August 2023, with current Chief Financial Officer
(CFO), Craig Francis, to be appointed as CEO from 1 September 2023; and
• On 30 June 2023, Genex announced two material transactions with J-POWER as
follows:
o Genex announced that it had entered into a $35 million corporate loan facility,
with J-POWER with the proceeds to be applied as additional standby
contingency funding to support the completion of the K2H project and toward
replenishment of Genex working capital; and
o Genex also announced that it had entered into a joint development agreement
with J-POWER for the BCP which provided for upfront funding of up to $8.5
million and a further $1 million in contributions to Genex by way of a
development funding agreement.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Significant changes in the state of affairs
In the 12 months to 30 June 2023, Genex made significant progress in the construction of
K2H and BBP, the latter of which successfully completed energisation on schedule in June
2023, and continued to advance the development of the K3W and BCP projects.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Significant events after the balance date
The following material events have occurred since Period-end:
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
• On 1 August 2023, Genex announced the appointment of Patrick McCarthy as CFO of
the Company, commencing from 16 October 2023.
T
N
E
D
N
E
P
E
D
N
I
Unless disclosed elsewhere in the consolidated financial statements, there have been no
other material events or circumstances which have arisen since 30 June 2023 that have
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.
GENEX FY2023 - ANNUAL REPORT
28
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Likely developments and expected results
Genex is currently focussed on the continued delivery of the construction of K2H and
commissioning of BBP, while rapidly progressing the development of K3W and the BCP.
Environmental regulation
Australia is experiencing the impacts of climate change, which vary across the country.
Australia’s climate is projected to continue to change into the future as outlined in the State
of the Climate report produced by the Bureau of Meteorology and CSIRO. Some of the
impacts cited in the report include:
• Australia’s climate has warmed by about 1.4 degrees celsius since 1910, leading to an
increase in the frequency of extreme heat events;
• Warming has occurred across Australia in all months, with both day and night-time
temperatures increasing;
• This long-term warming trend means that most years are now warmer than almost
any observed during the 20th century; and
• Australia’s warmest year on record was 2019, and the seven years from 2013 to 2019
all rank among the nine warmest years.
Genex supports Australia’s updated Nationally Determined Contribution (NDC) commitment
made under the Paris Agreement to the Executive Secretary of the United Nations
Framework Convention on Climate Change (UNFCCC) to reduce greenhouse gas emissions
by 43 percent below 2005 levels by 2030 which will put Australia on track to achieve net zero
emissions by 2050. Genex will contribute by aiming to achieve 2 million tonnes of CO2
abatement by 2025 through the development of its committed project portfolio.
Genex supports the Paris Agreement’s central aim to keep a global temperature rise this
century well below 2 degrees celsius above pre-industrial levels and to pursue efforts to
limit the temperature increase even further to 1.5 degrees celsius. Genex is supportive of
the Paris Agreement’s objectives and overall global efforts to achieve the aims set out
thereunder. Genex is in the early stages of developing a Sustainability Management Plan
(SMP) which will be used to guide the company in achieving its sustainability goals which will
align with those in the Paris Agreement. In Genex’s 2023 Annual Report the Company has
provided a detailed summary of the SMP, its objectives and what it will measure against the
Paris Agreement objectives.
GENEX FY2023 - ANNUAL REPORT
29
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
The Kidston Clean Energy Hub site is covered by Mining Lease No. 3347 and Environmental
Authority (EA) No. EPML000817013, which were originally granted to Kidston Gold Mines
Limited (KGML) under the Environmental Protection Act (1994) (QLD) (EP Act) at a time when
KGML was a subsidiary of Barrick Gold Corporation and the site was operated as a gold mine.
The EA has operative provisions relating to:
• General;
• Air;
• Water;
• Noise and vibration;
• Regulated dams; and
• Land and rehabilitation.
The K2H project also operates within Appendix 1 Imposed Conditions stipulated in the
Coordinator-General’s Office (CGO) evaluation report on the impact assessment. The report
was prepared pursuant to section 34L of the State Development and Public Works
Organisation Act 1971 (Qld) (SDPWO Act). Appendix 1 of the report outlines the conditions
imposed by the Coordinator-General under section 54B of the SDPWO Act and includes:
• Schedule 1 – Water Releases;
• Schedule 2 – Community and stakeholder engagement; and
• Schedule 3 – Third Party Audit.
In accordance with section 54B(3) of the SDPWO Act, the CGO has nominated the
Department of Environment and Science (DES) (the administering authority for the EP Act)
as the entity with jurisdiction for the conditions listed in Appendix 1, Schedule 1 – Water
Releases of the evaluation report.
Some of the provisions of the EA are inconsistent with Genex’s current use of the site as an
operator and developer of diverse renewable energy and storage projects. Genex, in
agreement with DES, has entered into an Environmental Evaluation process with a view to
amending certain provisions of the EA to be consistent with Genex’s current site use. On 22
December 2022, DES made the decision to accept the Environmental Evaluation Report
prepared by Genex.
GENEX FY2023 - ANNUAL REPORT
30
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The completion of the Environmental Evaluation has highlighted the fact that the current
EA framework applicable to KGML is not fit for purpose. As a result, a process of
surrendering the current EA and Mining Lease (ML3347) has been proposed to the various
Government Departments including DES, OCG, Department of Resources (DOR), Queensland
Treasury (QT) and the Financial Provisioning Scheme (FPS) Manager. Genex has proposed a
shift in environmental regulation from the mining framework to the contaminated land
framework in the EP Act. All existing and future environmental risks associated with historic
mining activities on the land can be appropriately regulated by the Administering Authority
(DES) under the contaminated land provisions of the EP Act, including enforcement actions.
Genex and DES, in consultation with the OCG, have established a team to manage the
process of exploring alternative options to the current EA framework. This approach has
replaced the requirement to submit a Progressive Rehabilitation and Closure Plan (PRCP)
that meets the requirements in sections 126C and 126D of the EP Act pursuant to section
754 of the EP Act by 16 September 2024.
Share options
Unissued shares
As at the date of this report, there were 14,500,000 unissued ordinary shares under option
and 9,660,586 unissued shares pursuant to unvested performance rights. Refer to the
Remuneration Report for further details of the options and performance rights outstanding
for Key Management Personnel (KMP).
Option holders and unvested performance rights holders do not have any right, by virtue of
the option, to participate in any share issuance of the Company or any related body
corporate.
Shares issued as a result of the exercise of options
During the financial year, no Directors, employees or executives have exercised any options
to acquire fully paid ordinary shares in Genex.
Indemnification and insurance of directors and officers
The Company has agreed to indemnify all the Directors and executive officers of the
Company for costs incurred, in their capacity as a Director or an executive, for which they
may be held personally liable, except where there is a lack of good faith.
GENEX FY2023 - ANNUAL REPORT
31
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
During or since the financial year, the Company has paid premiums in respect of a contract
insuring all the Directors and executives of Genex against a liability to the extent permitted
by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature
of liability and the amount of the premium.
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst &
Young Australia, as part of the terms of its audit engagement agreement (for an unspecified
amount) against claims by third parties arising from the audit, to the extent that the relevant
claim has not been finally determined to have resulted from the auditors' negligent,
wrongful or wilful acts or omissions. No payment has been made to indemnify Ernst & Young
Australia during or since the financial year.
Non-audit services
Certain non-audit services were provided by the Company’s auditor, Ernst & Young Australia
during the Period, for which Ernst & Young Australia received or are due to receive the
amounts detailed in the table below:
SERVICES
Advisory
Tax services (covering tax compliance and transactional tax services)
Assurance related
Total
$
52,125
101,885
10,400
164,410
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
The Directors are satisfied that the provision of non-audit services is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The
nature and scope of each type of non-audit service provided means that auditor
independence was not compromised.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Directors’ meetings
The number of meetings of Directors (including meetings of committees of Directors) held
during the year and the number of meetings attended by each Director were as follows:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
32
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
BOARD
AUDIT AND RISK
MANAGEMENT COMMITTEE
PEOPLE AND
REMUNERATION COMMITTEE
Held5
Attended
Held1
Attended
Held1
Attended
Dr. Ralph Craven
Ms. Teresa Dyson
Mr. Simon Kidston
Mr. Ben Guo
Mr. Kenichi Seshimo
Mr. Yongqing Yu
27
27
27
27
26
16
27
24
27
26
23
-
4
4
N/A
N/A
4
N/A
4
4
N/A
N/A
4
N/A
3
3
3
N/A
N/A
N/A
3
3
3
N/A
N/A
N/A
Committee membership
As at the date of this report, the Company had an Audit and Risk Management Committee
and a People and Remuneration Committee of the Board of Directors.
Members acting on the committees of the Board during the year were:
AUDIT AND RISK MANAGEMENT COMMITTEE
PEOPLE AND REMUNERATION COMMITTEE
Ms. Teresa Dyson (Chair)
Dr. Ralph Craven
Mr. Kenichi Seshimo
Dr. Ralph Craven (Chair)
Ms. Teresa Dyson
Mr. Simon Kidston
Auditor’s independence declaration
A copy of the auditor’s independence declaration is set out on the following page.
On behalf of the Directors,
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Dr Ralph Craven
Independent Non-executive Chairman
25 August 2023
Sydney, Australia
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
5 ‘Held’ represents the number of meetings held during the time the director was in office or was a member of the relevant committee, or otherwise at meetings
where the director was permitted to attend and not absented for conflict of interest reasons
GENEX FY2023 - ANNUAL REPORT
33
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Auditor’s Independence Declaration to the Directors of Genex Power Limited
As lead auditor for the audit of the financial report of Genex Power Limited for the financial year
ended 30 June 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 Genex Power Limited and the entities it controlled during the financial
year.
Ernst & Young
Ryan Fisk
Partner
25 August 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
6. REMUNERATION REPORT (AUDITED)
6.1 Letter from the People and Remuneration Committee Chair
Dear Shareholder,
As Chair of the Board and People and Remuneration Committee, I am pleased to present the
Remuneration Report for the year ended 30 June 2023 (FY2023). The FY2023 Remuneration
Report details our remuneration framework for our Executive Key Management Personnel
and Directors (KMP) and explains how FY2023 remuneration outcomes for executive KMP
align with our recent performance, long-term strategic objectives, and reflect our current
size and operational complexity.
At our 2022 Annual General Meeting (AGM), 25.3% of votes cast by shareholders were
against the FY2022 Remuneration Report, resulting in a ‘first strike’. As such, we have also
outlined the Board’s considered response to the first strike against the FY2022
Remuneration Report.
Overview of FY2023
FY2023 was a busy year for Genex. While we continued to progress the delivery of our
portfolio and the growth of our project pipeline, the Company entertained a non-binding
indicative offer from a consortium of Skip Essential Infrastructure Fund6 and Stonepeak
Partners LLC7 (the Consortium) to acquire 100% of Genex shares during an extended period
from July 2022 until discussions were terminated in late December 2022. The engagement
with the Consortium required considerable Board and Management time in addition to the
everyday business of running the Company. The 2022 AGM took place in the midst of the
engagement with the Consortium. During the time the Company was engaging with the
Consortium, Genex’s construction contractors encountered an unforeseen geological issue
at the Company’s flagship Kidston Pumped Storage Hydro Project. This event resulted in an
increase to the project costs by $10 million to $15 million. Genex together with our EPC
contractor partners managed this event in such a way that tunnelling resumed within 2
weeks, the issue mitigated by a re-routing of the main access tunnel works and the timeline
for energisation in 2H CY2024 maintained.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Notwithstanding these two events occurring in parallel, the Board and Management
successfully ensured the delivery of several strategic imperatives during FY2023. Our key
financial and non-financial highlights for FY2023 were:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
6 Skip Enterprises Pty Ltd as trustee for the Farquhar Trust
7 On behalf of certain of its managed funds and affiliated entities.
GENEX FY2023 - ANNUAL REPORT
35
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
• Completion of the refinancing of the subordinated loan facility for the 50MW Kidston
Solar Farm and 50MW Jemalong Solar Farm as announced on 1 July 2022;
• Acquisition of the up to 2GW Bulli Creek Clean Energy Project as announced on 10
August 2022;
• Appointment of Goldwind Australia as the preferred Wind Turbine Generator supplier
and installer for the 258MW Kidston Stage 3 Wind Project as announced on 24
November 2022;
• Energisation of the 50MW/100MWh Bouldercombe Battery Project as announced on
28 June 2023;
• Completion of a $44.5m funding package with Electric Power Development Co., Ltd
(J-POWER) including a corporate loan facility and joint development agreement for
the Bulli Creek Clean Energy Project, as announced on 30 June 2023;
• Continued progress with the construction activities for the 250MW/2,000MWh
Kidston Pumped Storage Hydro Project, including commencement of the Power
Station Cavern excavation activities, completion of the earthworks and
commencement of liner placement for Wises Dam, and continued progress on the
supporting connection infrastructure to connect the project to the National
Electricity Market; and
• Continuing focus on cost control, resulting in positive operating cash flow of $4.3m
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
for the full FY2023.
Summary of FY2023 remuneration outcomes
A summary of the key remuneration outcomes for executive KMP for FY2023 are as follows:
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
• Following a comprehensive remuneration review, the Chief Executive Officer (CEO),
Chief Financial Officer (CFO) and Chief Operating Officer (COO) received fixed
remuneration increases of approximately 5%, 17% and 5%, respectively, in FY2023;
and
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
• As a result of the Company’s strong project delivery and financial performance in
FY2023, the CEO achieved 80% of his maximum short-term incentive (STI)
opportunity in FY2023, with the CFO and COO earning 85% and 84.5%, respectively.
Response to 'first strike’ at the 2022 AGM
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The Board is disappointed that Genex received a ‘first strike’ against the FY2022
Remuneration Report, however, we acknowledge the concerns of shareholders and proxy
advisors. During FY2023, the Board undertook an extensive review of Genex’s executive
remuneration arrangements with the assistance of external advisors, taking into account
the feedback received and Genex’s growth and maturity profile.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
36
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The review also considered the remuneration practices of industry peers of comparable
size and operational complexity to Genex. The review informed changes to our
remuneration disclosures and practices from FY2023, ensuring an appropriate balance
between market expectations and the need to attract and retain high calibre executive
talent to continue the successful execution of our business strategy and growth. Below is a
summary of the primary concerns raised by stakeholders regarding the FY2022
Remuneration Report, and how the Board has responded:
CONCERN
BOARD’S RESPONSE
Absence of a formal long-term incentive
(LTI) plan for executives, with options
previously granted to executives in an
ad hoc manner, without additional
performance hurdles.
Considering this feedback and reflecting the growth and
maturity of the Company, a formal LTI plan was introduced
for executive KMP in FY2023, with the first grants under this
framework made in May 2023.
Insufficient disclosure of STI plan terms,
including measures, relative weightings
and outcomes against measures.
The new plan is better aligned with market practice, including
annual grants of performance rights; a three-year
performance period; individual limits; and vesting subject to
performance against two metrics.
The FY2023 Remuneration Report provides enhanced
disclosure of the STI plan terms (refer to section 6.4). Section
6.5 discloses the CEO’s FY2023 STI scorecard; with details of
each performance measure, their relative weighting, and
performance relative to targets.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
Insufficient disclosure of the terms of
prior option grants to executives,
including performance and vesting
conditions, and individual limits.
The key terms of the FY2023 LTI plan are disclosed in the
FY2023 Remuneration Report (refer to section 6.4). All
previously issued options to executive KMP have expired.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Executive KMP change
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
In May 2023, we were pleased to announce the appointment of Craig Francis as the
Company’s new CEO, effective from 1 September 2023. Craig, currently Genex’s CFO, will
succeed James Harding, who will retire on 31 August 2023 after serving in the role for five
years. Following his retirement, James will continue to support Genex as a consultant to
ensure a smooth transition period. On 1 August 2023, Genex announced the appointment of
Patrick McCarthy as CFO, commencing on 16 October 2023.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
On 1 August 2023, the Board announced Mr Francis’ CEO service agreement with the
following key terms:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
• Ongoing agreement with no fixed term, effective 1 September 2023;
• Fixed annual remuneration of $485,000 plus superannuation;
• Annual maximum STI opportunity of 40% of fixed remuneration;
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
37
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
• Annual maximum LTI opportunity of 100% of fixed remuneration, subject to two
performance conditions assessed over a 3-year performance period; and
• 5 weeks’ annual leave entitlement.
Full details of Mr Francis’ remuneration arrangements will be disclosed in the FY2024
Remuneration Report.
Introduction of a minimum shareholding policy
To assist in aligning the interests of non-executive directors with those of our shareholders,
we have decided to formally adopt a minimum shareholding policy, taking effect from
August 2023. The policy requires non-executive directors to hold Genex shares equal in
value to 100% of their annual director fee (excluding committee fees), to be accumulated
within three years commencing the later of 23 August 2023 or their date of appointment.
Conclusion
The Board is confident that the changes applied to our remuneration structures and
disclosures appropriately considers the feedback from key stakeholders, whilst remaining
fit-for-purpose for our size and circumstances. We will continue to regularly engage with
shareholders regarding the appropriateness of our remuneration framework and consider
opportunities to evolve our practices as we continue to grow and mature.
We thank you for your support and welcome your feedback at the 2023 AGM.
Yours faithfully,
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Dr Ralph Craven
Independent Non-executive Chairman of the Board and People and Remuneration
Committee
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
38
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
6.2 Remuneration report overview
The Directors of Genex present the Remuneration Report (the Report) for the Company and
its controlled entities for the year ended 30 June 2023. This Report forms part of the
Directors’ Report and has been audited in accordance with section 300A of the Corporations
Act 2001. The Report details the remuneration arrangements for Genex’s KMP comprising:
• Non-executive Directors (NEDs); and
• Senior executives (executives).
KMP are those persons who, directly or indirectly, have authority and responsibility for
planning, directing and controlling the major activities of the Company and Consolidated
Entity.
The table below outlines the KMP of Genex during the Period:
NEDs
R Craven
T Dyson
S Kidston
B Guo
K Seshimo
Y Yu
Executives
J Harding
A McGhie
C Francis
POSITION
TERM AS KMP
Non-executive Chair
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Up to 30 November 2022
Full financial year
Full financial year
Full financial year
6.3 Remuneration governance
The Board is responsible for determining and reviewing remuneration arrangements for the
Directors and executives.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Remuneration principles
The following principles guide the Board’s decisions about executive remuneration at
Genex:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
Fairness
Provide a fair level of reward to all employees
Transparency
Alignment
Build a culture of achievement by transparent links between reward and
performance
Promote mutually beneficial outcomes by aligning employee, stakeholder and
shareholder interests
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
39
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
People and Remuneration Committee
The People and Remuneration Committee is responsible for reviewing and providing
recommendations to the Board regarding the remuneration packages of KMP. The
committee assesses the appropriateness of the nature and amount of remuneration of KMP
on an annual basis with reference to the remuneration guiding principles and market
movements. The committee may seek both internal and external advice when considered
necessary to fulfil its responsibilities.
External advisors
The People and Remuneration Committee may consider advice from external remuneration
advisors to provide independent professional advice on remuneration matters when
required. When independent external advice is obtained, the Board has an engagement
policy in place that ensures any advice received is free from undue influence from KMP.
During FY2023, the People and Remuneration Committee engaged with an external
remuneration consultant seeking benchmarking
information to guide discussions
regarding the appropriate movement in fixed remuneration for FY2024.
6.4 Executive remuneration
Policy
Genex’s executive and senior executive remuneration policy is designed to attract, retain
and motivate executives with the aim to align the corporate goals and strategic objectives
of the Company with the remuneration paid to executives, and therefore considers both
short-term and long-term compensation. The Company also recognises that much is
required of our small team of executives to accomplish the goals the Company has set for
itself.
In determining the nature and amount of executive remuneration, the People and
Remuneration Committee takes into consideration Genex’s financial and operational
performance along with industry and market conditions. Alongside Genex’s unique
company circumstances, the People and Remuneration Committee also considers external
remuneration data from select peers, comparable in size and operational complexity, to
inform decisions surrounding the quantum and nature of executive remuneration. Peer
groups are typically comprised of Australian listed companies, operating in the same or
similar industry as Genex, and comparable in terms of market capitalisation, total assets,
revenue and/or EBITDA.
GENEX FY2023 - ANNUAL REPORT
40
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Remuneration packages for the executives include a mix of fixed remuneration that is
appropriate to their position and responsibilities; and performance-based remuneration, in
a way that aligns with the business strategy. The fixed component consists of base salary
and superannuation. The variable remuneration component consists of a short-term
incentive (STI) and long-term incentive (LTI).
Remuneration mix
The following displays the mix between fixed remuneration, STI and LTI at maximum
opportunity levels for FY2023 for executive KMP:
Fixed Remuneration
STI
LTI
C E O
42%
17%
42%
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
O t h e r e x e c u t i v e K M P
47%
19%
35%
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Notes:
(1) While the CEO, James Harding, had a LTI opportunity for FY2023, he was not granted a LTI in FY2023 in light
of his retirement on 31 August 2023.
(2) Other executive KMP include the CFO and COO.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Fixed remuneration
Fixed remuneration is comprised of base salary and superannuation. It is Genex’s policy that
fixed remuneration should be fair and reasonable and should take into account the core
performance requirements and expectations of the role, the surrounding labour market, as
well as the individual’s calibre, tenure, and experience.
During FY2023, the People and Remuneration Committee engaged an external consultant
to conduct a review of fixed remuneration arrangements for executive KMP, in light of the
prevailing inflationary environment. As a result of this review, it was determined that
increasing the fixed remuneration was necessary to retain and reward executive KMP for
the value they bring to the organisation during a critical period of growth. Specifically, the
Board approved a 5% increase for the CEO and COO, with a 17% increase approved for the
CFO.
GENEX FY2023 - ANNUAL REPORT
41
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The fixed remuneration of each executive KMP is outlined below, along with any changes
that occurred during FY2023. Each KMP is also entitled to redirect superannuation payable
above the general concessional contributions cap to ordinary earnings, at their election.
ROLE
FY2022
FY2023
% CHANGE
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
$420,000 + superannuation
$400,000 + superannuation
$360,000 + superannuation
$441,000 + superannuation
$420,000 + superannuation
$420,000 + superannuation
+5%
+5%
+17%
Short-term incentives
The following table outlines Genex’s STI plan that applied during FY2023:
Purpose
Eligibility
Opportunity
The purpose of the STI plan is to provide at-risk remuneration to executives to
incentivise performance to deliver against annual company objectives.
Executive KMP and select senior managers.
The maximum FY2023 STI opportunity for all executive KMP is 40% of their fixed
remuneration.
Performance period
1 July 2022 – 30 June 2023
Vehicle
STI is delivered in the form of a cash payment, after the release of the Company’s
audited financial results.
Performance
measures
STI outcomes are determined by measurement against a scorecard of key
performance indicators (KPIs), with measures specific to each individual.
The KPIs contained in the scorecard are set by the Board at the beginning of each
financial year, considering Genex’s annual business plan and strategic goals, as
well as role-specific performance objectives. Due to the prolonged engagement
with the Consortium, the adoption of KPIs for FY2023 was deferred until they
were formally adopted for KMP in December 2022.
For FY2023, the CEO’s scorecard contained the following KPIs and weightings:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Health, safety and environment (HSE)
Corporate measures
Project delivery
Project development
Project pipeline
Individual performance
15%
20%
20%
20%
10%
15%
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Cessation of
employment
Board discretion
Refer to section 6.5 for detail on the FY2023 STI outcomes for the CEO.
The payment of any STI outcomes is subject to the executive remaining
employed for the full performance period.
The payment and quantum of any STI award to the executive remains at the
Board’s absolute discretion.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
42
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Long-term incentives
Historically, Genex has not operated a formal LTI plan, instead granting ad-hoc options to
incentivise and retain key staff, with the last of these options expiring in February 2023. At
the 2022 AGM, Genex received a ‘first strike’, with the lack of a formal LTI plan strongly
influencing this outcome. Considering this feedback and reflecting the growth and maturity
of the Company, a formal LTI plan was introduced for executive KMP in FY2023, which will
constitute rolling 3-year annual grants of performance rights from FY2023 onwards.
The FY2023 LTI was granted to the CFO and COO on 10 May 2023. No FY2023 grant was made
to the CEO in consideration of his retirement in August 2023.
The features of this plan are outlined below:
Purpose
The purpose of the LTI plan is to align executive remuneration with long-term
shareholder value creation and incentivise performance against long-term
company objectives.
Eligibility
Executive KMP and select senior managers.
Opportunity
The maximum LTI opportunity for FY2023 was 75% of fixed remuneration for the
CFO and COO. The CEO had an opportunity of 100% of fixed remuneration,
however was not granted any LTI during FY2023 due to his impending retirement
from the Company on 31 August 2023.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Performance period
10 May 2023 – 10 May 2026
Vehicle
LTI is delivered in the form of performance rights (zero exercise price options).
Number of
instruments
The number of instruments granted has been determined using the following
formula:
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Maximum LTI opportunity (%) x Fixed remuneration ($)
Value per right ($)
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
For the purposes of LTI calculation, the value of each right has been determined
using a 10-day volume weighted-average price (VWAP) leading up to the date of
the award (i.e., face value).
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
43
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Vesting conditions
LTI outcomes will be determined by measurement against the following vesting
conditions:
1. Absolute total shareholder return (aTSR) - 50% weighting.
2. Project approval to final investment decision (FID) - 50% weighting.
Tranche 1 - aTSR
The vesting of performance rights in Tranche 1 will be determined in accordance
with the following vesting scale:
Absolute TSR growth
Less than 8% p.a.
8% p.a.
% of tranche vesting
0%
25%
Between 8% and 15% (inclusive) p.a.
>15% p.a.
Between 25%-75%, with pro-rata vesting
within this range
100%
TSR is calculated as the sum of Genex’ s share price appreciation during the
performance period and dividends (during periods of nil dividends, TSR is equal to
share price appreciation). The starting TSR is calculated using a 10-day VWAP
leading up to the date of award. For the FY2023 award, this was determined as
$0.1607. The ending TSR for which absolute TSR growth will be determined is to
be measured using a 10-day VWAP leading up to the vesting date.
aTSR was selected as a measure because it incentivises executives to drive
positive returns and aligns executive reward with long-term shareholder value
creation.
Tranche 2 – Project approval to FID
The vesting of performance rights in Tranche 2 will be determined in accordance
with the following vesting scale:
Project approval to FID (following grant date)
% of tranche vesting
The Board approves 1 new project to FID which is
≥ 250MW of capacity
The Board approves 2 new projects to FID with
total capacity between 250MW and 900MW
(inclusive)
The Board approves 3 new projects to FID with
total capacity >900MW
25%
Between 25%-75%, with pro-rata
vesting within this range (based on
capacity).
100%
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Project approval to FID was selected as a measure because it provides direct
alignment with Genex's long-term strategy of developing a portfolio of renewable
energy generation and storage projects across Australia, which in the opinion of
the Board will ultimately lead to increased shareholder value.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
Change of control
In the event of a change of control, the Board retains absolute discretion to
determine the treatment of any unvested awards. This may include pro-rata
vesting, or full or partial acceleration of vesting.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
44
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Cessation of
employment
Where a participant who holds unvested performance rights becomes a leaver, all
unvested performance rights will automatically be forfeited, unless the Board
determines otherwise.
Malus and clawback
If the award is viewed as inappropriate given the circumstances that prevail over
the measurement period, such as in the case of harm to Genex’s stakeholders for
which the Participant is accountable, the Board may in its discretion deem all
unvested performance rights to have been forfeited.
Board discretion
The vesting and quantum of any LTI award to executives remains at the Board’s
absolute discretion.
6.5 Link between company performance and reward
Company performance
The following table outlines Genex’s financial performance in FY2023 and the previous four
financial years, intended to assist in demonstrating the link between performance and
reward.
FY2019
15,954,845
5,588,257
FY2020
12,258,011
1,765,527
FY2021
FY2022
FY2023
21,650,296
27,192,840
24,648,806
9,684,349
13,819,122
11,158,256
(5,477,931)
(10,534,250)
(18,725,873)
(4,063,429)
(1,027,645)
521,559
(4,103,604)
(5,193,944)
6,728,555
4,280,014
0.255
96.88
0.185
70.35
0.220
235.38
0.115
159.30
0.150
207.78
Revenue
EBITDA
NPAT
Net Cash Flows from
Operating Activities
Share price (30 June)
Market capitalisation
(in millions) (30 June)
STI outcomes
The following table outlines the FY2023 STI outcomes for the CEO:
CATEGORY
MEASURE
WEIGHTING
TARGET
PERFORMANCE
OUTCOME
HSE
Corporate
measures
Safety
7.5%
Environment
7.5%
Corporate
budget
Project
development
budget
KGM budget
10%
5%
5%
Threshold (25%): zero serious
incidents.
Target (50%): less than or equal
to 2 lost time injuries and zero
serious incidents.
Stretch (100%): less than or equal
to 1 lost time injury and zero
serious incidents.
Actual performance is within the
FY23 budget
Actual performance is within the
FY23 budgets for K3W and
BCBP/BCSP
Actual performance is within the
FY23 budget
1 lost time injury
recorded for the
year and zero
serious
incidents.
15%
Achieved in full
10%
Partially
achieved
Partially
achieved
2.5%
4%
GENEX FY2023 - ANNUAL REPORT
45
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
CATEGORY
MEASURE
WEIGHTING
TARGET
PERFORMANCE
OUTCOME
Project
delivery
K2H and BBP
20%
Project
development
K3W
BCBP
Project
pipeline
Individual
Delivery of
new projects
Individual
performance
CEO FY2023 Scorecard Outcome
10%
10%
10%
Delivery of K2H and BBP projects
to construction schedule on time
and budget
Project development milestones
on offtake, procurement and
approvals
Project development milestones
on offtake, procurement and grid
studies
Delivery of new ‘confirmed’
projects to fill up the pipeline
15%
Subject to Board review
Partially
achieved
Partially
achieved
12.5%
7.5%
Achieved
10%
Partially
achieved
Partially
achieved
7.5%
11%
80%
The following table outlines the STI earned with respect to performance during FY2023 for
all executive KMP:
MAXIMUM STI OPPORTUNITY
AS A % OF FIXED
REMUNERATION
% OF MAXIMUM STI
AWARDED
% OF MAXIMUM STI
FORFEITED
VALUE STI
AWARDED
40%
40%
40%
80%
84.5%
85%
20%
15.5%
15%
$155,938
$156,866
$157,794
KMP
J Harding (CEO)
A McGhie (COO)
C Francis (CFO)
LTI outcomes
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
There are no outstanding grants of options and no options or performance rights vested to
KMP during FY2023.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
6.6 Non-executive Director remuneration
The Company’s director fee policy is designed to attract and retain high calibre directors
who can discharge the roles and responsibilities required in terms of good governance,
strong oversight, independence and objectivity. Director fees reflect the demands and
responsibilities of the directors. Director fees consist of base fees for all directors and an
additional fee for the Chair of the Audit and Risk Management Committee. The payment of
a fee as the chair of a committee recognises the additional time commitment required by
the Committee Chair who serves on that committee. Dr Craven does not, nor has at anytime
during his tenure as a director on the Genex board, received a fee in respect of chairing the
People and Remuneration Committee. NEDs receive fees only and do not participate in any
performance-related incentive awards.
GENEX FY2023 - ANNUAL REPORT
46
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Director fees are determined within an aggregate fee pool limit, which is periodically
approved by shareholders at the Company’s AGM. The current maximum aggregate amount
that may be paid to Directors for their services is $600,000 per annum. This approved
amount is to be divided as agreed amongst the Directors and if in default of agreement, then
in equal shares.
Directors may be paid additional fees or other amounts as the People and Remuneration
Committee determines where they render or are called upon to perform extra services or to
make any special exertions in connection with the affairs of Genex as occurred in the
relevant financial year. Directors may also be reimbursed for any disbursements or any
other out of pocket expenses properly incurred as a result of their directorship or any
special duties.
The following table outlines the director fees that applied during FY2023, inclusive of
superannuation:
ROLE/FUNCTION
MAIN BOARD
AUDIT & RISK MANAGEMENT
PEOPLE & REMUNERATION
Chair
Member
$180,000 plus superannuation
$15,000 plus superannuation
$90,000 plus superannuation
N/A
N/A
N/A
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
6.7 Executive Service Agreements
Each executive KMP has entered an employment contract with the Group. Details of the
relevant contracts are set out below:
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
EXECUTIVE
KMP
DURATION OF
SERVICE
AGREEMENT
J Harding (CEO)
Ongoing
C Francis (CFO)
Ongoing
A McGhie (COO)
Ongoing
NOTICE
PERIOD
3 months (by
either party)
3 months (by
either party)
3 months (by
either party)
TERMINATION
ENTITLEMENTS (WITHOUT
CAUSE)
TERMINATION
ENTITLEMENTS (WITH
CAUSE)
Accrued annual and long
service leave entitlements
Accrued annual and long
service leave entitlements
Accrued annual and long
service leave entitlements
Accrued annual and long
service leave entitlements
Accrued annual and long
service leave entitlements
Accrued annual and long
service leave entitlements
GENEX FY2023 - ANNUAL REPORT
47
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
6.8 Statutory and share-based reporting
KMP remuneration for the years ended 30 June 2023 and 30 June 2022
KMP remuneration is summarised in the tables below for FY2023 and FY2022. The
additional payments relate to exertion fees to Directors and STI payments to executives
(which are presented on an accrual basis). The share-based payments relate to the valuation
of options issued in prior years to Directors and executives and performance rights issued
to executives in the Period. The employee entitlements relate to annual leave and long
service leave entitlements. As noted above the Board and management of Genex was fully
engaged with the Consortium from mid- July 2022 until late December 2022. During this
period the Board conducted an additional 12 formal board meetings to deal with the
Consortium’s proposal as well as normal meetings to properly manage other unexpected
matters such as the water ingress event in September 2022.
GENEX FY2023 - ANNUAL REPORT
48
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
FY2023
SHORT-TERM BENEFITS
$
SALARY & FEES
ADDITIONAL
PAYMENTS
EMPLOYEE
ENTITLEMENTS
POST-
EMPLOYMENT
SUPER-
ANNUATION
LONG-TERM
BENEFITS
EMPLOYEE
ENTITLEMENTS
SHARE-BASED
PAYMENTS
PERFORMANCE
RIGHTS
TOTAL
REMUNERATION
NEDs
R Craven
T Dyson
S Kidston
B Guo
K Seshimo
Y Yu
Subtotal
Executives
J Harding
A McGhie
C Francis
Subtotal
Total
180,000
105,000
90,000
90,000
-
-
465,000
459,815
436,609
436,607
1,333,031
1,798,031
63,000
11,250
27,000
19,125
-
-
120,375
155,938
156,866
157,794
470,598
590,973
-
-
-
-
-
-
-
42,288
40,274
40,274
122,836
122,836
25,515
12,206
12,285
11,458
-
-
61,464
27,490
27,491
27,493
82,474
143,938
-
-
-
-
-
-
-
13,547
12,835
16,708
43,090
43,090
-
-
-
-
-
-
-
11,351
11,351
22,702
22,702
268,515
128,456
129,285
120,583
-
-
646,839
699,078
685,426
690,227
2,074,731
2,721,570
GENEX FY2023 - ANNUAL REPORT
49
FY2022
SHORT-TERM BENEFITS
$
SALARY & FEES
ADDITIONAL
PAYMENTS
EMPLOYEE
ENTITLEMENTS
POST-
EMPLOYMENT
SUPER-
ANNUATION
LONG-TERM
BENEFITS
EMPLOYEE
ENTITLEMENTS
SHARE-BASED
PAYMENTS
SHARE OPTIONS
TOTAL
REMUNERATION
NEDs
R Craven
M Addison
T Dyson
S Kidston
B Guo
K Seshimo
Y Yu
Executive Directors
S Kidston
B Guo
Subtotal
Executives
J Harding
A McGhie
C Francis
Subtotal
Total
160,000
26,667
95,000
40,000
60,000
-
-
547,5058
454,5669
1,383,738
438,667
416,667
372,001
1,227,335
2,611,073
-
-
-
-
-
-
-
67,320
191,68010
259,000
147,520
158,400
150,480
456,400
715,400
-
-
-
-
-
-
-
-
-
-
16,448
21,342
14,668
52,458
52,458
16,000
2,667
9,500
4,000
6,000
-
-
27,499
40,875
106,541
23,333
23,333
23,999
70,665
177,206
-
-
-
-
-
-
-
-
-
-
22,829
17,577
8,698
49,104
49,104
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
176,000
29,334
104,500
44,000
66,000
-
-
642,324
687,121
1,749,279
648,797
637,319
569,846
1,855,962
3,605,241
8 Includes executive salary, a termination payment when Mr. Kidston retired as an executive and consultancy fees
9 Includes executive salary and a termination payment when Mr. Guo retired as an executive
10 Includes STI payments paid in FY2022 relating to services performed in FY2021
GENEX FY2023 - ANNUAL REPORT
50
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Shareholdings11 of KMP for the year ended 30 June 2023
BALANCE
AS AT
1 JULY 2022
1,048,188
585,856
8,663,827
2,170,681
-
-
801,776
-
42,553
13,312,881
R Craven
T Dyson
S Kidston
B Guo
K Seshimo
Y Yu
J Harding12
A McGhie
C Francis
Total
GRANTED AS
REMUNERATION
ON EXERCISE
OF OPTIONS
PURCHASES
SOLD
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
-
-
-
-
250,000
BALANCE
AS AT
30 JUNE 2023
1,048,188
585,856
8,663,827
2,420,681
-
-
801,776
-
42,553
13,562,881
-
-
-
-
-
-
-
-
-
-
Option holdings of KMP for the year ended 30 June 2023
BALANCE AS AT
1 JULY 2022
GRANTED AS
REMUNERATION
OPTIONS
EXERCISED
EXPIRED
BALANCE AS AT
30 JUNE 2023
R Craven
T Dyson
S Kidston
B Guo
K Seshimo
Y Yu
J Harding
A McGhie
C Francis
Total
4,000,000
1,500,000
3,000,000
3,000,000
-
-
2,600,000
-
2,000,000
16,100,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,600,000)
-
(2,000,000)
(4,600,000)
4,000,000
1,500,000
3,000,000
3,000,000
-
-
-
-
-
11,500,000
Performance rights holdings of KMP for the year ended 30 June 2023
BALANCE AS AT
1 JULY 2022
GRANTED AS
REMUNERATION
PERFORMANCE
RIGHTS VESTED
PERFORMANCE
RIGHTS LAPSED
BALANCE AS AT
30 JUNE 2023
R Craven
T Dyson
S Kidston
B Guo
K Seshimo
Y Yu
J Harding
A McGhie
C Francis
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,165,993
2,165,993
4,331,986
-
-
-
-
-
-
-
-
-
-
End of Remuneration Report (Audited)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,165,993
2,165,993
4,331,986
11 Includes shares held directly, indirectly and beneficially by KMP
12 Shares are held beneficially by spouse
GENEX FY2023 - ANNUAL REPORT
51
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
7. CONSOLIDATED FINANCIAL STATEMENTS
The financial statements cover Genex Power Limited as a Consolidated Entity consisting of
Genex Power Limited and its subsidiaries. The financial statements are presented in
Australian dollars, which is Genex Power Limited’s functional and presentation currency.
Genex Power Limited is a listed public company limited by shares, incorporated and
domiciled in Australia. Its registered office and principal place of business are:
Registered Office
Suite 12.03, Level 12
35 Clarence St
Sydney NSW 2000
A description of the nature of the Consolidated Entity’s operations and its principal
activities is included in the Directors’ Report, which is not part of the financial statements.
Defined terms in the Directors’ Report have the same meaning as used in the financial
statements.
The financial statements were authorised for issue, in accordance with a resolution of
Directors, on 25 August 2023. The Directors have the power to amend and reissue the
financial statements.
GENEX FY2023 - ANNUAL REPORT
52
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
7.1 Consolidated Statement of Profit or Loss and Other Comprehensive
Income
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
FOR THE YEAR ENDED 30 JUNE
NOTES
Revenue
Sale of electricity and environmental
products and lease income
Other income
Total revenue
Expenses
Project site costs
Project consulting costs
Employment expenses
Share-based payments
Administrative expenses
Depreciation
Total expenses
Operating gain
Finance costs
Finance income
Loss before tax
Income tax expense
Loss after income tax expense
attributable to the owners of Genex
Power Limited
Other comprehensive income (OCI) to be
reclassified to profit or loss in
subsequent periods (net of tax)
Net gain on cash flow hedges
Total comprehensive gain/(loss)
attributable to the owners of Genex
Power Limited
Loss per share
Basic loss per share
Diluted loss per share
7
7
8
9
10
17, 22
11
12
23
13
2023
$
23,759,426
889,380
24,648,806
3,779,075
219,466
4,774,134
58,206
4,659,669
9,467,607
22,958,157
2022
$
24,800,511
2,392,329
27,192,840
4,296,547
278,719
5,573,210
-
3,225,242
10,145,774
23,519,492
1,690,649
3,673,348
(4,425,926)
1,707,632
(1,027,645)
(7,826,287)
89,510
(4,063,429)
-
-
(1,027,645)
(4,063,429)
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
295,279
23,797,857
(732,366)
19,734,428
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
(0.07)
(0.07)
(0.35)
(0.35)
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
53
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
7.2 Consolidated Statement of Financial Position
AS AT 30 JUNE
NOTES
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Prepayments
Total Current Assets
Non-Current Assets
Bond, deposits and bank guarantee
Property, plant and equipment
Right of use assets
Investment in joint ventures
Other non-current financial assets
Other assets
Total Non-Current Assets
14
15, 23
16, 23
17
22
18
23, 24
19
2023
$
49,589,224
3,725,508
234,350
2,595,094
56,144,176
128,295,703
637,369,498
3,937,206
3,135,000
17,605,384
2,876,734
793,219,525
2022
$
62,854,694
3,307,454
172,500
3,209,608
69,544,256
71,942,519
448,797,252
3,217,940
-
17,310,105
6,376,869
547,644,685
TOTAL ASSETS
849,363,701
617,188,941
Liabilities
Current Liabilities
Trade and other payables
Interest-bearing loans and borrowings
Interest payables
Government grant
Provisions
Current lease liabilities
Total Current Liabilities
Non-Current Liabilities
Interest-bearing loans and borrowings
Government grant
Non-current lease liabilities
Rehabilitation and restoration provision
Other non-current liabilities
Total Non-Current Liabilities
23
20, 23, 24
23
21
22, 23, 24
20, 23, 24
21
22, 23, 24
15,770,201
15,260,647
1,089,361
443,712
2,426,139
770,597
35,760,657
601,914,504
5,973,144
3,555,572
3,804,311
214,455
615,461,986
13,634,135
26,461,544
1,465,889
442,500
2,238,880
483,443
44,726,391
358,752,182
6,416,856
3,034,065
3,804,311
140,118
372,147,532
TOTAL LIABILITIES
NET ASSETS
Equity
Share capital
Share-based payment reserves
Cash flow hedge reserve
Accumulated losses
Total Equity
GENEX FY2023 - ANNUAL REPORT
651,222,643
416,873,923
198,141,058
200,315,018
T
N
E
D
N
E
P
E
D
N
I
25
25
23, 25
240,572,998
4,586,353
17,605,384
(64,623,677)
198,141,058
242,072,998
4,528,147
17,310,105
(63,596,232)
200,315,018
54
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
7.3 Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED
30 JUNE 2023
Balance at 1 July 2022
Loss after income tax
Cash flow hedge reserve
Total comprehensive gain/(loss) for the period
Shares issued during the period net issue costs
Other
Share-based payments
Balance at 30 June 2023
FOR THE YEAR ENDED
30 JUNE 2022
Balance at 1 July 2021
Loss after income tax
Cash flow hedge reserve
Total comprehensive gain/(loss) for the period
Shares issued during the period net issue costs
Other equity contribution
Share-based payments
Balance at 30 June 2022
NOTES
ISSUED
CAPITAL
$
UNISSUED
CAPITAL
OPTIONS
RESERVES
CASH FLOW
HEDGE RESERVE
ACCUMULATED
LOSSES
TOTAL EQUITY
$
$
$
$
$
240,572,998
1,500,000
4,528,147
17,310,105
(63,596,232)
200,315,018
23
25
9
NOTES
23
25
25
9
-
-
-
-
-
-
-
(1,027,645)
(1,027,645)
295,279
-
295,279
240,572,998
1,500,000
4,528,147
17,605,384
(64,623,877)
199,582,652
-
-
-
240,572,998
-
(1,500,000)
-
-
-
-
58,206
-
-
-
-
200
-
-
(1,499,800)
58,206
4,586,353
17,605,384
(64,623,677)
198,141,058
ISSUED
CAPITAL
$
195,786,112
-
-
195,786,112
44,786,886
UNISSUED
CAPITAL
OPTIONS
RESERVES
CASH FLOW
HEDGE RESERVE
ACCUMULATED
LOSSES
TOTAL
EQUITY
$
$
-
-
-
-
-
$
$
$
4,528,147
(6,487,752)
(59,532,803)
134,293,704
-
-
-
(4,063,429)
(4,063,429)
23,797,857
-
23,797,857
4,528,147
17,310,105
(63,596,232)
154,028,132
-
-
-
-
-
-
-
-
-
44,786,886
1,500,000
-
-
-
1,500,000
-
240,572,998
1,500,000
4,528,147
17,310,105
(63,596,232)
200,315,018
GENEX FY2023 - ANNUAL REPORT
55
7.4 Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE
NOTES
Operating activities
Receipts from customers
Payments to suppliers
Payments to employees
Interest received
Interest and other costs of finance paid
Government grants and tax incentives
Net cash flows from operating activities
Investing activities
Purchase of property, plant and equipment
Funds invested into term deposit
Proceeds from disposal of term deposit
Development expenditures
Investment in joint ventures
Net cash flows used in investing activities
Financing activities
Proceeds from issues of shares
Transaction costs related to issues of shares
Proceeds from borrowings
Repayment of borrowings
Transaction costs related to borrowings
Proceeds from joint development agreements
Net cash flows from financing activities
Net increase / (decrease) in cash and cash equivalents
for the period
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
14
25
25
23
23
23
25
14
2023
$
2022
$
28,508,914
(13,130,833)
(4,743,612)
1,707,632
(8,085,952)
23,865
4,280,014
27,230,274
(9,986,929)
(4,937,349)
89,510
(6,293,488)
626,537
6,728,555
(240,846,834)
(353,185)
-
-
(2,865,000)
(244,065,019)
(234,724,212)
(102,608)
4,458,242
(2,753,837)
-
(233,122,415)
-
-
254,819,571
(27,980,036)
(320,000)
-
226,519,535
47,004,800
(2,439,605)
212,779,155
(13,886,486)
(906,400)
1,250,000
243,801,464
(13,265,470)
17,407,604
62,854,694
49,589,224
45,447,090
62,854,694
GENEX FY2023 - ANNUAL REPORT
56
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
7.5 Notes to the Consolidated Financial Statements
Note 1.
Corporate information
The consolidated financial statements of the Consolidated Entity for the year ended 30
June 2023 were authorised for issue in accordance with a resolution of the Directors on 25
August 2023.
Genex is a for profit company limited by shares, incorporated and domiciled in Australia,
whose shares are publicly traded. The registered office is located in Sydney, Australia. The
Consolidated Entity’s principal activities are the development and commercialisation of
renewable energy generation and storage projects.
Information on the Consolidated Entity’s structure is provided in Note 6. Information on
other related party relationships of the Consolidated Entity is provided in Note 29.
Note 2.
Significant accounting policies
2.1 Basis of preparation
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
This financial report is a general purpose financial report, which has 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 (AASB).
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The consolidated financial statements have been prepared on a historical cost basis,
except for derivative financial instruments, that have been measured at fair value. The
carrying values of recognised assets and liabilities that are designated as hedged items in
fair value hedges that would otherwise be carried at amortised cost are adjusted to
recognise changes in the fair values attributable to the risks that are being hedged in
effective hedge relationships. The consolidated financial statements are presented in
Australian Dollars and all values are rounded to the nearest dollar, except when otherwise
indicated.
The Consolidated Entity has prepared the financial statements on the basis that it will
continue to operate as a going concern.
The consolidated financial statements provide comparative information in respect of the
previous period. In addition, the Consolidated Entity presents an additional statement of
financial position at the beginning of the preceding period when there is a retrospective
application of an accounting policy, a retrospective restatement, or a reclassification of
items in financial statements. The consolidated financial statements present reclassified
comparative
information where required for consistency with the current year’s
presentation.
GENEX FY2023 - ANNUAL REPORT
57
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Compliance with International Financial Reporting Standards (IFRS)
This financial report also complies with IFRS as issued by the International Accounting
Standards Board (IASB).
2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company
and its subsidiaries as at 30 June 2023. Control is achieved when the Consolidated Entity is
exposed, or has rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. Specifically, the
Consolidated Entity controls an investee if, and only if, the Consolidated Entity has:
• Power over the investee (i.e. existing rights that give it the current ability to direct
the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee; and
• The ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To
support this presumption and when the Consolidated Entity has less than a majority of the
voting or similar rights of an investee, the Consolidated Entity considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement(s) with the other vote holders of the investee;
• Rights arising from other contractual arrangements; and
• The Consolidated Entity’s voting rights and potential voting rights.
The Consolidated Entity re-assesses whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three elements of
control. Consolidation of a subsidiary begins when the Consolidated Entity obtains control
over the subsidiary and ceases when the Consolidated Entity loses control of the subsidiary.
Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the
financial year are included in the consolidated financial statements from the date the
Consolidated Entity gains control until the date the Consolidated Entity ceases to control
the subsidiary.
Profit or loss and each component of Other Comprehensive Income (OCI) are attributed to
the equity holders of the Company of the Consolidated Entity and to the non-controlling
interests, even if this results in the non-controlling interests having a deficit balance. When
necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Consolidated Entity’s accounting policies. All intra-
group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Consolidated Entity are eliminated in full on
consolidation.
GENEX FY2023 - ANNUAL REPORT
58
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
A change in the ownership interest of a subsidiary, without a loss of control, is accounted
for as an equity transaction.
If the Consolidated Entity loses control over a subsidiary, it derecognises the related assets
(including goodwill), liabilities, non-controlling interest and other components of equity,
while any resultant gain or loss is recognised in profit or loss. Any investment retained is
recognised at fair value.
2.3 Summary of significant accounting policies
a) Investment in joint ventures
A joint venture is a type of joint arrangement whereby the parties that have joint control of
the arrangement have rights to the net assets of the joint venture. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing
control.
The considerations made in determining joint control are similar to those necessary to
determine control over subsidiaries. The Consolidated Entity’s investments in its joint
ventures are accounted for using the equity method.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
Under the equity method, the investment in a joint venture is initially recognised at cost.
The carrying amount of the investment is adjusted to recognise changes in the
Consolidated Entity’s share of net assets of the joint venture since the acquisition date.
Goodwill relating to the joint venture is included in the carrying amount of the investment
and is not tested for impairment separately.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The statement of profit or loss reflects the Consolidated Entity’s share of the results of
operations of the joint venture. Any change in OCI of those investees is presented as part of
the Consolidated Entity’s OCI. In addition, when there has been a change recognised directly
in the equity of the joint venture, the Consolidated Entity recognises its share of any
changes, when applicable, in the statement of changes in equity. Unrealised gains and
losses resulting from transactions between the Consolidated Entity and the joint venture
are eliminated to the extent of the interest in the joint venture.
The aggregate of the Consolidated Entity’s share of profit or loss of a joint venture is shown
on the face of the statement of profit or loss outside operating profit and represents profit
or loss after tax and non-controlling interests in the subsidiaries of the joint venture.
The financial statements of the joint venture are prepared for the same reporting period as
the Consolidated Entity. When necessary, adjustments are made to bring the accounting
policies in line with those of the Consolidated Entity.
GENEX FY2023 - ANNUAL REPORT
59
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
b) Current versus non-current classification
The Consolidated Entity presents assets and liabilities in the statement of financial position
based on current/non-current classification. An asset is current when it is:
• Expected to be realised or intended to be sold or consumed in the normal operating
cycle;
• Held primarily for the purpose of trading;
• Expected to be realised within twelve months after the reporting period; or
• Classified as cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
•
•
•
It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
• There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.
The terms of the liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The Consolidated Entity classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
c) Fair value measurement
The Consolidated Entity measures financial instruments such as derivatives at fair value at
each reporting date.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
•
•
In the principal market for the asset or liability; or
In the absence of a principal market, in the most advantageous market for the asset
or liability.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
60
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The principal or the most advantageous market must be accessible by the Consolidated
Entity.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
act in their economic best interests.
A fair value measurement of a non-financial asset takes into account a market participant's
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.
The Consolidated Entity uses valuation techniques that are appropriate
in the
circumstances and for which sufficient data is available to measure fair value, maximising
the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities;
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
• Level 2 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable; or
• Level 3 — Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
For assets and liabilities that are recognised in the financial statements at fair value on a
recurring basis, the Consolidated Entity determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each
reporting period.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
For purposes of fair value disclosures, the Consolidated Entity has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset or
liability and the level of the fair value hierarchy, as explained above.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
d) Revenue from contracts with customers
Revenue from contracts with customers is recognised when control of the goods or
services are transferred to the customer at an amount that reflects the consideration to
which the Consolidated Entity expects to be entitled in exchange for those goods or
services. The Consolidated Entity has generally concluded that it is the principal in its
revenue arrangements, because it is the primary obligor in all the revenue arrangements,
has pricing latitude, and is also exposed to inventory.
The specific recognition criteria described below must also be met before revenue is
recognised.
GENEX FY2023 - ANNUAL REPORT
61
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Sale of electricity and environmental products
Revenue from the sale of electricity and environmental products is recognised at the point
in time when control of the asset is transferred to the buyer and the Consolidated Entity has
the right to be compensated.
e) Government grants
Government grants are recognised where there is reasonable assurance that the grant will
be received and all attached conditions will be complied with. When the grant relates to an
expense item, it is recognised as income on a systematic basis over the periods that the
related costs, for which it is intended to compensate, are expensed. When the grant relates
to an asset, it is recognised as income in equal amounts over the expected useful life of the
related asset.
f) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or
sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds.
g) Share-based payments
Employees and Directors of the Consolidated Entity receive remuneration in the form of
share-based payments, whereby they render services as consideration for equity
instruments (equity-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the
grant is made using an appropriate valuation model, further details of which are given in
Note 9.
That cost is recognised as an expense in the statement of profit or loss, together with a
corresponding increase in equity (other capital reserves), over the period in which the
service and, where applicable, the performance conditions are fulfilled (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date
until the vesting date reflects the extent to which the vesting period has expired and the
Consolidated Entity’s best estimate of the number of equity instruments that will ultimately
vest. The expense or credit in the statement of profit or loss for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period.
GENEX FY2023 - ANNUAL REPORT
62
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Service and non-market performance conditions are not taken into account when
determining the grant date fair value of awards, but the likelihood of the conditions being
met is assessed as part of the Consolidated Entity’s best estimate of the number of equity
instruments that will ultimately vest. Market performance conditions are reflected within
the grant date fair value. Any other conditions attached to an award, but without an
associated service requirement, are considered to be non-vesting conditions. Non-vesting
conditions are reflected in the fair value of an award and lead to an immediate expensing of
an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market
performance and/or service conditions have not been met. Where awards include a market
or non-vesting condition, the transactions are treated as vested irrespective of whether the
market or non-vesting condition is satisfied, provided that all other performance and/or
service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense recognised
is the grant date fair value of the unmodified award, provided the original vesting terms of
the award are met. An additional expense, measured as at the date of modification, is
recognised for any modification that increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the employee. Where an award is
cancelled by the Consolidated Entity or by the counterparty, any remaining element of the
fair value of the award is expensed immediately through profit or loss.
The dilutive effect of outstanding options is reflected as additional share dilution in the
computation of diluted earnings per share (further details are given in Note 13).
h) Taxes
Income tax
Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted at the reporting
date in Australia where the Consolidated Entity operates and generates taxable income.
Australian Tax consolidation legislation
Genex and
consolidation legislation as of 1 July 2005.
its wholly-owned Australian controlled entities
implemented the tax
The head entity and the controlled entities in the tax consolidated group continue to
account for their own current and deferred tax amounts. The head entity has applied the
group allocation approach in determining the appropriate amount of current taxes and
deferred taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the
current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses
and unused tax credits assumed from controlled entities in the tax consolidated group.
GENEX FY2023 - ANNUAL REPORT
63
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Assets or liabilities arising under tax funding agreements with the tax consolidated entities
are recognised as amounts receivable from or payable to other entities.
Any difference between the amounts assumed and amounts receivable or payable under
the tax funding agreement are recognised as a contribution to (or distribution from) wholly-
owned tax consolidated entities.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the
tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
• When the deferred tax liability arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss; or
•
In respect of taxable temporary differences associated with investments in
subsidiaries, associates and interests in joint arrangements, when the timing of the
reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised
to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilised, except:
• When the deferred tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
•
In respect of deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint arrangements, deferred tax assets are
recognised only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets
are re-assessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.
GENEX FY2023 - ANNUAL REPORT
64
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
In assessing the recoverability of deferred tax assets, the Consolidated Entity relies on the
same forecast assumptions used elsewhere in the financial statements and in other
management reports, which, among other things, reflect the potential impact of climate-
related development on the business, such as increased cost of production as a result of
measures to reduce carbon emissions.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply
in the year when the asset is realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit
or loss. Deferred tax items are recognised in correlation to the underlying transaction either
in OCI or directly in equity.
Tax benefits acquired as part of a business combination, but not satisfying the criteria for
separate recognition at that date, are recognised subsequently if facts and circumstances
change or new information arises. The adjustment is either treated as a reduction in
goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement
period or recognised in profit or loss.
The Consolidated Entity 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.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Goods and Services Tax (GST)
Expenses and assets are recognised net of the amount of GST, except:
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
• When the GST incurred on a purchase of assets or services is not recoverable from
the taxation authority, in which case, the sales tax is recognised as part of the cost
of acquisition of the asset or as part of the expense item, as applicable; or
• When receivables and payables are stated with the amount of GST included.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
The net amount of GST recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the statement of financial position. Commitments and
contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
Cash flows are included in the statement of cash flows on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is
recoverable from, or payable to, the taxation authority is classified as part of operating cash
flows.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
65
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
i) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprises cash at bank
and on hand and short-term highly liquid deposits with a maturity of three months or less,
that are readily convertible to a known amount of cash and subject to an insignificant risk
of changes in value.
For purposes of the consolidated statement of cash flows, cash and cash equivalents
consist of cash and short-term deposits which are freely available for use, as defined above,
net of outstanding bank overdrafts as they are considered an integral part of the
Consolidated Entity’s cash management.
j)
Inventories
Inventories reflect Large Scale Generation Certificates (LGCs) which have been generated
but not yet sold. LGCs received by the energy market regulator are initially recognised as
inventory at fair value, with a corresponding gain recognised as other income in profit or
loss. Upon sale, the difference between the sale price and the book value of inventory is
recorded as a component of revenue.
k) Property, plant and equipment
Construction in progress is stated at cost, net of accumulated impairment losses, if any.
Plant and equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the cost of replacing part of the plant and
equipment and borrowing costs for long-term construction projects if the recognition
criteria are met. When significant parts of plant and equipment are required to be replaced
at intervals, the Consolidated Entity depreciates them separately based on their specific
useful lives. Likewise, when a major inspection is performed, its cost is recognised in the
carrying amount of the plant and equipment as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the
assets, as follows:
• Renewable energy projects: 20 to 30 years;
• Right-of-use assets: over the lease term;
• Land: indefinite;
• Motor vehicle: less than 5 years; and
• Furniture and fittings: less than 5 years.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The Consolidated Entity reviews the estimated residual values and expected useful lives of
assets at least annually. In particular, the Consolidated Entity considers the impact of health,
safety and environmental legislation in its assessment of expected useful lives and
estimated residual values.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
66
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
An item of property, plant and equipment and any significant part initially recognised, is
derecognised upon disposal (i.e. at the date the recipient obtains control) or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of profit or loss when the
asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year-end and adjusted retrospectively, if
appropriate.
Work in progress capital assets
Work in progress capital assets represent project construction costs incurred prior to
commencement of a project’s operation. Work in progress capital assets are not
depreciated until the assets are held ready for use on a commercial basis.
l) Leases
The Consolidated Entity assesses at contract inception whether a contract is, or contains,
a lease. That is, if the contract conveys the right to control the use of an identified asset for
a period of time in exchange for consideration.
As a lessee
The Consolidated Entity applies a single recognition and measurement approach for all
leases, except for short-term leases and leases of low-value assets. The Consolidated
Entity recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
i) Right-of-use assets
The Consolidated Entity recognises right-of-use assets at the commencement date of the
lease (i.e. the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses and adjusted
for any remeasurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred and lease payments made
at or before the commencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets.
If ownership of the leased asset transfers to the Consolidated Entity at the end of the lease
term or the cost reflects the exercise of a purchase option, depreciation is calculated using
the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in
section (p) Impairment of non-financial assets.
GENEX FY2023 - ANNUAL REPORT
67
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
ii) Lease liabilities
At the commencement date of the lease, the Consolidated Entity recognises lease liabilities
measured at the present value of lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate and
amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the
Consolidated Entity and payments of penalties for terminating the lease, if the lease term
reflects the Consolidated Entity exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as
expenses (unless they are incurred to produce inventories) in the period in which the event
or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Consolidated Entity uses its
incremental borrowing rate at the lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the commencement date, the amount
of lease liabilities is increased to reflect the accrual of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the lease payments (e.g. changes
to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.
iii) Short-term leases and leases of low-value assets
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The Consolidated Entity applies the short-term lease recognition exemption to its short-
term leases (i.e. those leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option). It also applies the lease of low-
value assets recognition exemption to leases that are considered to be low value. Lease
payments on short-term leases and leases of low-value assets are recognised as expenses
on a straight-line basis over the lease term.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
As a lessor
Leases in which the Consolidated Entity does not transfer substantially all the risks and
rewards incidental to ownership of an asset are classified as operating leases. Rental
income arising is accounted for on a straight-line basis over the lease term and is included
in revenue in the statement of profit or loss due to its operating nature. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.
GENEX FY2023 - ANNUAL REPORT
68
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
m) Provisions
General
Provisions are recognised when the Consolidated Entity has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Consolidated Entity
expects some or all of a provision to be reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the
statement of profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised
as a finance cost.
Rehabilitation and restoration provision
The Consolidated Entity records the present value of the estimated cost of legal and
constructive obligations to rehabilitate mining lease areas as a rehabilitation and
restoration provision, initially in the period in which the obligation is incurred. The nature of
rehabilitation activities includes dismantling and removing structures, rehabilitating mines,
dismantling operating facilities, closure of plant and waste sites and restoration,
reclamation and revegetation of affected areas. When the liability is initially recorded, the
present value of the estimated cost is capitalised by increasing the carrying amount of the
related mining assets. Over time, the discounted liability is increased for the change in the
present value based on a discount rate, where appropriate. Additional disturbances or
changes in rehabilitation costs will be recognised as additions or changes to the
corresponding asset and rehabilitation liability when incurred. The unwinding of the effect
of discounting the provision is recorded as a finance charge in the profit or loss. The
carrying amount capitalised as part of mining assets is depreciated or amortised over the
life of the related asset.
Annual leave and long service leave provision
A liability is recognised for benefits accruing to employees in respect of annual leave and
long service leave when it is probable that settlement will be required and they are capable
of being measured reliably.
Liabilities recognised for annual leave and any other short term employee benefits that are
expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service are measured at the amounts expected to be paid
when the liabilities are settled in respect of services provided by employees up to the
reporting date. Consideration is also given to on-costs.
GENEX FY2023 - ANNUAL REPORT
69
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Liabilities recognised in respect of long service leave and any other long term employee
benefits that are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service are measured at the present value
of the estimated future cash outflows to be made by the Consolidated Entity in respect of
services provided by employees up to the reporting date. Consideration is given to expected
future salary levels, historical employee turnover rates and periods of service. Expected
future payments are discounted using market yields at the reporting date on government
bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
n) Financial instruments – initial recognition and subsequent measurement
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets
i) Initial recognition and measurement
At initial recognition, financial assets are classified as subsequently measured at amortised
cost, fair value through OCI, and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Consolidated Entity’s business model for
managing them. With the exception of trade receivables that do not contain a significant
financing component or for which the Consolidated Entity has applied the practical
expedient, the Consolidated Entity initially measures a financial asset at its 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
Consolidated Entity has applied the practical expedient are measured at the transaction
price.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
In order for a financial asset to be classified and measured at amortised cost or fair value
through OCI, it needs to give rise to cash flows that are ’solely payments of principal and
interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the
SPPI test and is performed at an instrument level. Financial assets with cash flows that are
not SPPI are classified and measured at fair value through profit or loss, irrespective of the
business model.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
The Consolidated Entity’s business model for managing financial assets refers to how it
manages its financial assets in order to generate cash flows. The business model
determines whether cash flows will result from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified and measured at amortised cost are
held within a business model with the objective to hold financial assets in order to collect
contractual cash flows while financial assets classified and measured at fair value through
OCI are held within a business model with the objective of both holding to collect
contractual cash flows and selling.
GENEX FY2023 - ANNUAL REPORT
70
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e. the date that the Consolidated Entity commits to
purchase or sell the asset.
ii) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
• Financial assets at amortised cost (debt instruments);
• Financial assets at fair value through OCI with recycling of cumulative gains and
losses (debt instruments);
• Financial assets designated at fair value through OCI with no recycling of cumulative
gains and losses upon derecognition (equity instruments); or
• Financial assets at fair value through profit or loss.
Financial assets at amortised cost (debt instruments)
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
This is the category most relevant to the Consolidated Entity. Financial assets at amortised
cost are subsequently measured using the effective interest (EIR) method and are subject
to impairment. Gains and losses are recognised in profit or loss when the asset is
derecognised, modified or impaired.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The Consolidated Entity’s financial assets at amortised cost includes trade and other
receivables, and bonds, deposits and bank guarantees.
The Consolidated Entity does not presently hold the other three categories of measurement
of financial assets.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
iii) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e. removed from the Consolidated Entity’s
consolidated statement of financial position) when:
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
• The rights to receive cash flows from the asset have expired; or
• The Consolidated Entity has transferred its rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ’pass-through‘ arrangement; and either (a) the
Consolidated Entity has transferred substantially all the risks and rewards of the
asset, or (b) the Consolidated Entity has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the
asset.
GENEX FY2023 - ANNUAL REPORT
71
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
When the Consolidated Entity has transferred its rights to receive cash flows from an asset
or has entered into a pass-through arrangement, it evaluates if and to what extent, it has
retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset,
the Consolidated Entity continues to recognise the transferred asset to the extent of its
continuing involvement. In that case, the Consolidated Entity also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Consolidated Entity has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Consolidated Entity could be required to repay.
iv) Impairment
Further disclosures relating to impairment of financial assets are also provided in the
following notes:
• Disclosures for significant assumptions: Note 3
• Trade receivables: Note 15
The Consolidated Entity recognises an allowance for expected credit losses (ECLs) for all
debt instruments not held at fair value through profit or loss. ECLs are calculated based on
the difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Consolidated Entity expects to receive, discounted at an
approximation of the original EIR. 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 recognised 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).
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
For trade and other receivables, the Consolidated Entity applies a simplified approach in
calculating ECLs. Therefore, the Consolidated Entity does not track changes in credit risk,
but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The
Consolidated Entity 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.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
72
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
The Consolidated Entity considers a financial asset in default when contractual payments
are 90 days past due. However, in certain cases, the Consolidated Entity may also consider
a financial asset to be in default when internal or external information indicates that the
Consolidated Entity is unlikely to receive the outstanding contractual amounts in full before
taking into account any credit enhancements held by the Consolidated Entity. A financial
asset is written off when there is no reasonable expectation of recovering the contractual
cash flows.
Financial liabilities
i) Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.
The Consolidated Entity’s financial liabilities include trade and other payables, loans and
borrowings and derivative financial instruments.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
ii) Subsequent measurement
For purposes of subsequent measurement, financial liabilities are classified in two
categories:
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
• Financial liabilities at fair value through profit or loss; and
• Financial liabilities at amortised cost (loans and borrowings).
Financial liabilities at amortised cost (loans and borrowings)
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
This is the category most relevant to the Consolidated Entity. After initial recognition,
interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of profit or loss.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
This category generally applies to interest-bearing loans and borrowings. For more
information, refer to Note 20 and Note 23.
The Consolidated Entity does not presently hold the measurement of financial liabilities at
fair value through profit or loss.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
73
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
iii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified; such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the
consolidated statement of financial position if there is a currently enforceable legal right to
offset the recognised amounts and there is an intention to settle on a net basis, to realise
the assets and settle the liabilities simultaneously.
o) Derivative financial instruments and hedge accounting
Initial recognition and subsequent measurement
The Consolidated Entity uses derivative financial instruments, principally interest rate
swaps, to hedge its interest rate exposures in certain circumstances. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently remeasured at fair value. Derivatives are
carried as financial assets when the fair value is positive and as financial liabilities when the
fair value is negative.
For purposes of hedge accounting, hedges are classified as:
• Cash flow hedges when hedging the exposure to variability in cash flows that is either
attributable to a particular risk associated with a recognised asset or liability or a
highly probable forecast transaction or the foreign currency risk in an unrecognised
firm commitment.
At the inception of a hedge relationship, the Consolidated Entity formally designates and
documents the hedge relationship to which it wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the hedge.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
The documentation includes identification of the hedging instrument, the hedged item, the
nature of the risk being hedged and how the Consolidated Entity will assess whether the
hedging relationship meets the hedge effectiveness requirements (including the analysis
of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging
relationship qualifies for hedge accounting if it meets all of the following effectiveness
requirements:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
74
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
• There is ’an economic relationship‘ between the hedged item and the hedging
instrument;
• The effect of credit risk does not ’dominate the value changes‘ that result from that
economic relationship; and
• The hedge ratio of the hedging relationship is the same as that resulting from the
quantity of the hedged item that the Consolidated Entity actually hedges and the
quantity of the hedging instrument that the Consolidated Entity actually uses to
hedge that quantity of hedged item.
Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in
the cash flow hedge reserve, while any ineffective portion is recognised immediately in the
statement of profit or loss. The cash flow hedge reserve is adjusted to the lower of the
cumulative gain or loss on the hedging instrument and the cumulative change in fair value
of the hedged item.
The Consolidated Entity designates only the spot element of forward contracts as a hedging
instrument. The forward element is recognised in OCI and accumulated in a separate
component of equity under cost of hedging reserve.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
The Consolidated Entity uses interest rate swaps as hedges of its exposure to interest rate
risk in forecast transactions and firm commitments in certain circumstances. The
ineffective portion relating to interest rate swaps is recognised as other expense. Refer to
Note 23 for more details.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The amount accumulated in OCI is reclassified to profit or loss as a reclassification
adjustment in the same period or periods during which the hedged cash flows affect profit
or loss.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
If cash flow hedge accounting is discontinued, the amount that has been accumulated in
OCI must remain in accumulated OCI if the hedged future cash flows are still expected to
occur. Otherwise, the amount will be immediately reclassified to profit or loss as a
reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any
amount remaining in accumulated OCI must be accounted for depending on the nature of
the underlying transaction.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
p) Impairment of non-financial assets
Further disclosures relating to impairment of non-financial assets are also provided in the
following notes:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
• Disclosures for significant assumptions Note 3
• Property, plant and equipment Note 17
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
75
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The Consolidated Entity assesses bi-annually, at each reporting date, whether there is an
indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Consolidated Entity estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or a cash-
generating unit’s (CGU) 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 an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining fair value less costs of
disposal, recent market transactions are taken into account. If no such transactions can be
identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly traded companies or other available
fair value indicators.
The Consolidated Entity bases its impairment calculation on most recent budgets and
forecast calculations, which are prepared separately for each of the Consolidated Entity’s
CGUs to which the individual assets are allocated. These budgets and forecast calculations
generally cover a minimum period of five years, however given the long term and predictable
nature of the Consolidated Entity’s operations, these are generally extended to cover the
useful life of each CGU.
Impairment losses of continuing operations are recognised in the statement of profit or loss
in expense categories consistent with the function of the impaired asset, except for
properties previously revalued with the revaluation taken to OCI.
For assets excluding goodwill, an assessment is made at each reporting date to determine
whether there is an indication that previously recognised impairment losses no longer exist
or have decreased. If such indication exists, the Consolidated Entity estimates the assets’
or CGUs’ recoverable amount. A previously recognised impairment loss is reversed only if
there has been a change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognised. The reversal is limited so that the
carrying amount of the asset does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such reversal is recognised in the
statement of profit or loss unless the asset is carried at a revalued amount, in which case,
the reversal is treated as a revaluation increase.
The Consolidated Entity assesses where climate risks could have a significant impact, such
as the introduction of emission-reduction legislation that may increase manufacturing
costs. These risks in relation to climate- related matters are included as key assumptions
where they materially impact the measure of recoverable amount.
GENEX FY2023 - ANNUAL REPORT
76
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
2.4 Changes in accounting policies and disclosures
New and amended standards and interpretations
The Consolidated Entity has adopted all of the new or amended Accounting Standards and
Interpretations issued by AASB that are mandatory for the current reporting period. The
adoption of these Accounting Standards and Interpretations did not have any significant
impact on the financial performance or position of the Group during the full financial year
ended 30 June 2023.
Note 3.
Significant accounting judgements, estimates and assumptions
The preparation of the Consolidated Entity’s consolidated financial statements requires
management to make certain judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities (and the accompanying
disclosures) and the disclosure of contingent
liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods.
Other disclosures relating to the Consolidated Entity’s exposure to risks and uncertainties
includes:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
• Capital management Note 5; and
• Financial instruments risk management and policies Note 23.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Judgements
In the process of applying the Consolidated Entity’s accounting policies, management has
made the following judgements, which have the most significant effect on the amounts
recognised in the consolidated financial statements:
Determining the lease term of contracts with renewal and termination options –
Consolidated Entity as lessee
The Consolidated Entity determines the lease term as the non-cancellable term of the lease,
together with any periods covered by an option to extend the lease if it is reasonably certain
to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.
GENEX FY2023 - ANNUAL REPORT
77
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
The Consolidated Entity has several lease contracts that include extension and termination
options. The Consolidated Entity applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew or terminate the lease. That is, it
considers all relevant factors that create an economic incentive for it to exercise either the
renewal or termination. After the commencement date, the Consolidated Entity reassesses
the lease term if there is a significant event or change in circumstances that is within its
control and affects its ability to exercise or not to exercise the option to renew or to
improvements or significant
terminate (e.g. construction of significant
customisation to the leased asset).
leasehold
The Consolidated Entity included the renewal period as part of the lease term for leases
with shorter non-cancellable period (i.e. three to five years). The Consolidated Entity
typically exercises its option to renew for these leases because there will be a significant
negative effect on production if a replacement asset is not readily available. The renewal
periods for leases with longer non-cancellable periods (i.e. 10 to 15 years) are not included
as part of the lease term as these are not reasonably certain to be exercised. Furthermore,
the periods covered by termination options are included as part of the lease term only when
they are reasonably certain not to be exercised.
Joint venture arrangements in which the Consolidated Entity holds 100% shareholding
The Consolidated Entity considers that it has joint control in Genex (Kidston Wind) Pty Ltd
and Bulli Creek Hold Co. Pty Ltd, even though it holds 100% of the total issued ordinary
shares in each entity. This determination is derived from the joint development agreements
that have been established for K3W and BCP. These agreements stipulate that material
decisions relating to project development activities require unanimous consent from the
contractual parties sharing control, with each party maintaining an equal 50% economic
interest in the respective arrangements.
The assessments made in respect of these entities has involved evaluating the substance
of contractual arrangements, joint control, rights and obligations of the parties involved, as
well as the nature and extent of their decision-making rights.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below. The Consolidated Entity has based its assumptions and estimates on
parameters available when the consolidated financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising that are beyond the control of the Consolidated
Entity. Such changes will be reflected in revisions to such assumptions in future periods
when they occur.
GENEX FY2023 - ANNUAL REPORT
78
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Impairment of non-financial assets
The Consolidated Entity is required to evaluate the assessment of impairment indicators
(internal and external) and make judgements in assessing the factors that are required to
be evaluated as part of the impairment indicators assessment. This includes reviewing
significant changes that may have an adverse effect on the Consolidated Entity. The
performance of non-current assets is impacted by environmental, technological, market,
economic, legal or environmental changes in which the Consolidated Entity operates.
The significant judgements, estimates and assumptions applied by management when
testing for impairment includes forecast electricity and LGC prices, generation profiles,
marginal loss factors and discount rates.
Provision for expected credit losses of trade and other receivables
The Consolidated Entity uses a provision matrix to calculate ECLs for trade and other
receivables. The provision rates are based on days past due for groupings of various
customer segments that have similar loss patterns (i.e. by geography, product type,
customer type and rating, coverage by letters of credit and other forms of credit insurance).
The provision matrix is initially based on the Consolidated Entity’s historical observed
default rates. The Consolidated Entity will calibrate the matrix to adjust the historical credit
loss experience with forward-looking information. For example, if forecast economic
conditions (i.e. gross domestic product) are expected to deteriorate over the next year
which can lead to an increased number of defaults in the manufacturing sector, the
historical default rates are adjusted. At every reporting date, the historical observed default
rates are updated and changes in the forward-looking estimates are analysed.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The assessment of the correlation between historical observed default rates, forecast
economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to
changes in circumstances and of forecast economic conditions. The Consolidated Entity’s
historical credit loss experience and consensus forecast economic conditions may also not
be representative of a customer’s actual default in the future.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Leases - Estimating the incremental borrowing rate
If the Consolidated Entity cannot readily determine the interest rate implicit in a lease, it
uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of
interest that the Consolidated Entity would have to pay to borrow over a similar term, and
with a similar security, the funds necessary to obtain an asset of a similar value to the right-
of-use asset in a similar economic environment. The IBR therefore reflects what the
Consolidated Entity ’would have to pay‘, which requires estimation when no observable
rates are available (such as for subsidiaries that do not enter into financing transactions) or
when they need to be adjusted to reflect the terms and conditions of the lease (for example,
when leases are not in the subsidiary’s functional currency). Where required to do so, the
Consolidated Entity estimates the IBR using observable inputs (such as market interest
rates) when available and is required to make certain entity-specific estimates (such as the
subsidiary’s stand-alone credit rating).
GENEX FY2023 - ANNUAL REPORT
79
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Share-based payments
Estimating fair value for share-based payment transactions requires determination of the
most appropriate valuation model, which depends on the terms and conditions of the grant.
This estimate also requires determination of the most appropriate inputs to the valuation
model including the expected life of the share option or appreciation right, volatility and
dividend yield and making assumptions about them. For the measurement of the fair value
of equity-settled transactions with employees at the grant date, the Consolidated Entity
uses the Black-Scholes option valuation model, the Binomial Option Pricing Tree and or the
Monte-Carlo Statistical Scenario Analysis. The assumptions and models used for estimating
the fair value of share-based payment transactions are disclosed in Note 9.
Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable
that taxable profit will be available against which the losses can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and the level of future taxable profits,
together with future tax planning strategies.
The Consolidated Entity has $63,600,949 (30 June 2022: $50,636,551) of tax losses carried
forward. These losses relate to subsidiaries that have a history of losses, do not expire, and
may not be used to offset taxable income elsewhere in the Consolidated Entity. The
subsidiaries neither have any taxable temporary difference nor any tax planning
opportunities available that could partly support the recognition of these losses as deferred
tax assets. On this basis, the Consolidated Entity has determined that it cannot recognise
deferred tax assets on the tax losses carried forward. Further details on taxes are disclosed
in Note 12.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of
financial position cannot be measured based on quoted prices in active markets, their fair
value is measured using valuation techniques including the discounted cash flow (DCF)
model methodology. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions relating to these factors could affect the reported
fair value of financial instruments. See Note 23 for further disclosures.
Development costs
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The Consolidated Entity capitalises costs for project development. Initial capitalisation of
costs is based on management’s judgement that technological and economic feasibility is
confirmed, usually when a project development has reached a defined milestone according
to an established project management model. At 30 June 2023, the carrying amount of
capitalised development costs was $nil (FY2022: $1,254,889).
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
80
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Provision for rehabilitation and restoration
The Consolidated Entity has established provisions for rehabilitation and restoration
obligations associated with its mining lease. This provision is based on estimates derived
from the assessments of Queensland’s Department of Environment and Science on the
expected costs and timelines required to fulfil the Consolidated Entity’s legal and
constructive obligations. The estimates take into consideration factors such as regulatory
requirements, technological advancements, inflation, and environmental considerations.
Note 4.
Segment information
Management has determined that the Consolidated Entity has one reportable segment;
being the development, construction and operation of renewable energy generation and
storage projects in Australia, for the year ended 30 June 2023.
Note 5.
Capital management
For purposes of the Consolidated Entity’s capital management, capital includes share
capital and all other equity reserves attributable to the equity holders of the Company. The
primary objective of the Consolidated Entity’s capital management is to maximise
shareholder value.
The Consolidated Entity manages its capital structure and makes adjustments in light of
changes in economic conditions and the requirements of financial covenants under its
interest-bearing loans and borrowings. The Consolidated Entity monitors capital using a
gearing ratio, which is “net debt” divided by total capital plus net debt. The Consolidated
Entity includes within net debt, interest bearing loans and borrowings, trade and other
payables, less cash and cash equivalents.
FOR THE YEAR ENDED 30 JUNE
Interest-bearing loans and borrowings
Trade and other payables
Interest payables
Less: cash and cash equivalents
Net debt
Equity
Total capital
Capital and net debt
Gearing ratio
2023
$
617,175,151
15,770,201
1,089,361
49,589,224
683,623,937
198,141,058
198,141,058
881,764,995
77.53%
2022
$
385,213,726
13,634,135
1,465,889
(62,854,694)
337,459,056
200,315,018
200,315,018
537,774,074
62.75%
GENEX FY2023 - ANNUAL REPORT
81
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Note 6.
Consolidated entity information
Parent
The Parent Entity is Genex Power Limited, incorporated and domiciled in Australia.
Subsidiaries
The consolidated financial statements of the Consolidated Entity include:
NAME
PRINCIPAL ACTIVITIES
COUNTRY OF
INCORPORATION
Genex (Kidston) Pty Limited
Holding company
Kidston Gold Mines Limited
Landowner
Genex Solar Holding Co Pty Limited*
Holding company
Genex (Solar) Pty Limited*
KS1 operation
Kidston Solar Holding Co Pty Limited*
Holding company
Kidston Solar Co Pty Limited*
KS1 operation
Kidston Solar Finance Co Pty Limited*
Financial operation
Jemalong PV Holdings Pty Limited
Holding company
Jemalong PV Asset Pty Limited
Jemalong Networks Pty Limited
JSP operation
JSP operation
Genex (Kidston Hydro) Pty Limited
Holding company
Kidston Hydro Hold Co Pty Limited
Holding company
Kidston Hydro Project Co Pty Ltd
K2H project development
Genex (Storage) Pty Ltd
Holding company
Como Energy (Bouldercombe) Pty Ltd
Holding company
Bouldercombe Battery Project Co Pty Ltd
BBP project development
BBP Finance Co. Pty Ltd**
Financial operation
Genex (Bulli Creek) Pty Ltd***
Holding company
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
%
INTEREST
2023
%
INTEREST
2022
100.00%
100.00%
100.00%
100.00%
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
99.99%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
N/A
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
* These companies are 99.99% owned by Genex (Kidston) Pty Limited. The remaining 0.01% is held by Michael Addison.
The 0.01% held by Michael Addison was acquired by Genex (Kidston) Pty Ltd on 1 July 2023.
** This is a new entity incorporated during the year ended 30 June 2022.
*** This is a new entity incorporated during the year ended 30 June 2023.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Joint arrangement in which the Consolidated Entity is a joint venturer
The Consolidated Entity has joint control in the following entities. For more details, refer to
Note 3 and Note 18.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
82
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
NAME
PRINCIPAL ACTIVITIES
COUNTRY OF
INCORPORATION
Genex (Kidston Wind) Pty Ltd
Bulli Creek Hold Co. Pty Ltd
K3W Hold Co. Pty Ltd***
Holding company
Holding company
Holding company
K3W Project Co. Pty Ltd***
K3W project development
K3W Finance Co. Pty Ltd***
Financial operation
BCS Hold Co. Pty Ltd***
Holding company
BCS Project Co. Pty Ltd***
BCP project development (solar)
BCS Finance Co. Pty Ltd***
Financial operation
BCB Hold Co. Pty Ltd***
Holding Company
BCB Project Co. Pty Ltd***
BCP project development (battery)
BCB Finance Co. Pty Ltd***
Financial operation
Bulli Creek Solar Farm Pty Ltd****
Holding company for BCP
development rights
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
%
INTEREST
2023
%
INTEREST
2022
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
75.00%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
*** This is a new entity incorporated during the year ended 30 June 2023.
**** A 75% interest in this entity was acquired by Bulli Creek Hold Co. Pty Ltd during the year ended 30 June 2023
Note 7.
Revenue
FOR THE YEAR ENDED 30 JUNE
KS1 lease revenue
JSP generation revenue
JSP LGC sales
Sale of electricity and environmental products
and lease income
ARENA government grant
Liquidated damages
LGCs on hand
Avoided TUOS
Fuel tax credit
Others
Other income
Total revenue
KS1 lease revenue
2023
$
11,274,611
7,836,536
4,648,279
23,759,426
442,500
-
234,350
193,181
17,393
1,956
889,380
2022
$
12,804,613
7,612,650
4,383,248
24,800,511
884,041
875,123
172,500
250,813
185,787
24,065
2,392,329
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
24,648,806
27,192,840
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
This relates to revenue earned by KS1 from sales of electricity in the wholesale spot market
which, under the Solar 150 Price Support Deed between the Consolidated Entity and the
Queensland Government, is subject to a guaranteed floor price per megawatt hour where
payments may be made by the Queensland Government to the Consolidated Entity. Under
the Solar 150 Price Support Deed, all large-scale generation certificates generated by KS1
are transferred to the Queensland Government as consideration for providing the
guaranteed floor price.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
83
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Liquidated damages
For the year ended 30 June 2022, performance and delay liquidated damages were made by
Energy Solutions Pty Ltd (trading as Beon) for delays to Practical Completion of the JSP
project (as stated in the Quarterly Activities Report released to the ASX on 20 October 2021).
As practical completion was achieved on 30 June 2021, no further liquidated damages were
incurred during the Period.
Note 8.
Employment expense
FOR THE YEAR ENDED 30 JUNE
Wages and salaries
Defined contribution superannuation expense
Payroll tax
Employee entitlements
Fringe benefit tax
Workers' compensation
Staff training
Total employment expenses
Note 9.
Share-based payments
2023
$
3,944,459
367,998
245,539
142,521
57,927
12,873
2,817
4,774,134
2022
$
5,012,737
381,463
219,436
(72,612)
11,624
18,121
2,441
5,573,210
The expense recognised for employee services received during the year is shown in the
following table:
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
FOR THE YEAR ENDED 30 JUNE
Expense arising from equity-settled share-based payment transactions
Total expense arising from share-based payment transactions
2023
$
58,206
58,206
2022
$
-
-
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
There were no cancellations or modifications to the existing awards for the year ended 30
June 2023 and 30 June 2022.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Share options
Movements during the Period
The following table illustrates the number and weighted average exercise prices (WAEP) of,
and movements in, share options during the Period:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
84
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Outstanding at 1 July
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2023
Number
19,350,000
-
-
-
(4,850,000)
14,500,000
14,500,000
2023
WAEP
0.36
-
-
-
0.40
0.34
0.34
2022
Number
37,250,000
-
-
-
(17,900,000)
19,350,000
19,350,000
2022
WAEP
0.34
-
-
-
0.33
0.36
0.36
On 13 February 2023, 4,850,000 share options expired (WAEP: $0.40).
Terms of share options
The following tables outline the terms attached to the outstanding option plans for the
years ended 30 June 2023 and 30 June 2022:
FOR THE YEAR ENDED
30 JUNE 2023
Number
Value per option ($)
Subscription price per option ($)
Each option is convertible into
Exercise price per option
Vesting condition
Issue date
Expiry date
Option exercise period
Other conditions
FOR THE YEAR ENDED
30 JUNE 2022
Number
Value per option ($)
Subscription price per option ($)
Each option is convertible into
Exercise price per option
Vesting condition
Issue date
Expiry date
Option exercise period
Other conditions
DIRECTORS OPTIONS
14,500,000
$0.1500
$Nil
1 ordinary share in the Parent Entity
$0.34
Vesting on issue date
10 September 2019
10 September 2024
At any time from date of vesting
None
MANAGEMENT OPTIONS
DIRECTORS OPTIONS
4,850,000
$0.1296
$Nil
1 ordinary share in the Parent
Entity
$0.40
The options vest in 2 separate
tranches upon the achievement of
3 milestones. If a milestone is not
achieved, the options for that
milestone will lapse unvested.
As at 30 June 2022, all options
have vested.
23 February 2018
13 February 2023
14,500,000
$0.1500
$Nil
1 ordinary share in the Parent
Entity
$0.34
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Vesting on issue date
10 September 2019
10 September 2024
At any time from date of vesting
At any time from date of vesting
None
None
GENEX FY2023 - ANNUAL REPORT
85
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Valuation of share options
The following tables list the inputs to the models used for the outstanding plans for the
years ended 30 June 2023 and 30 June 2022:
FOR THE YEAR ENDED 30 JUNE 2023
DIRECTORS OPTIONS
Weighted average fair values at the measurement date ($)
Dividend yield (%)
Expected volatility (%)
Risk–free interest rate (%)
Expected life of share options
Weighted average share price ($)
Model used
$0.1500
Nil
40.00%
0.84%
5 Years
$0.25
Black Scholes Model
FOR THE YEAR ENDED 30 JUNE 2022
MANAGEMENT
OPTIONS
DIRECTORS
OPTIONS
Weighted average fair values at the measurement date ($)
Dividend yield (%)
Expected volatility (%)
Risk–free interest rate (%)
Expected life of share options
Weighted average share price ($)
Model used
$0.1500
Nil
40.00%
0.84%
5 Years
$0.25
Black Scholes Model Black Scholes Model
$0.1296
Nil
60.00%
2.40%
5 Years
$0.29
Performance Rights
Movements during the Period
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The following table illustrates the number of, and movements in, performance rights during
the Period:
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Outstanding at 1 July
Granted during the year
Forfeited during the year
Vested during the year
Outstanding at 30 June
2023
Number
-
9,660,586
-
-
9,660,586
2022
Number
-
-
-
-
-
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
86
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Terms of performance rights
The performance rights have been issued in two tranches, with the terms summarised below:
FOR THE YEAR ENDED 30 JUNE 2023
Number
Value per performance right ($)
Subscription price per performance right ($)
Each performance right is convertible into
Exercise price per performance right
MANAGEMENT PERFORMANCE RIGHTS
7,097,494
$0.1015
$0.1650
$Nil
1 ordinary share in the Parent Entity
$Nil
All performance rights will vest 3 years from the date of grant, subject to the below criteria:
Criteria 1: Absolute total shareholder return (aTSR)
(total 50%):
Criteria 2: New projects to Final Investment Decision
(FID) (total 50%):
Vesting condition
12.5% will vest if the aTSR is at least 8% p.a.;
•
• 25.0% will vest if the aTSR is greater than 8% p.a.
and less than or equal to 15% p.a. and pro-rata
within this range;
12.5% will vest if the aTSR is greater than 15% p.a.
•
•
12.5% will vest if Board approves 1 new project to
FID greater than or equal to 250MW;
• 25.0% will vest if Board approves 2 new projects
to FID with total capacity greater than 250MW and
up to 900MW with pro-rata occurring within this
range;
•
12.5% will vest if Board approves 3 new projects
to FID with total capacity greater than 900MW.
Issue date
10 May 2023
aTSR means the total shareholder return relative to the ARV. ARV means the award reference VWAP of $0.1607.
FOR THE YEAR ENDED 30 JUNE 2023
Number
Value per performance right ($)
Subscription price per performance right ($)
Each performance right is convertible into
Exercise price per performance right
K2H PROJECT TEAM PERFORMANCE RIGHTS
2,563,092
$0.1650
$0.1015
$Nil
1 ordinary share in the Parent Entity
$Nil
GENEX FY2023 - ANNUAL REPORT
87
FOR THE YEAR ENDED 30 JUNE 2023
K2H PROJECT TEAM PERFORMANCE RIGHTS
Vesting condition
Criteria 1: Achieving Provisional Acceptance (total
50%):
50% vest on the date that Genex (or its related
bodies corporate) issues a notice of Provisional
Acceptance under the Engineering, Procurement
and Construction Contract for the Kidston Pumped
Storage Hydro Project dated 31 March 2021.
Criteria 2: aTSR (total 50%):
Up to 50% will vest on the 3 year anniversary date of the
award on the basis of the below criteria:
12.5% will vest if the aTSR is at least 8% p.a.;
•
• 25.0% will vest if the aTSR is greater than 8% p.a.
and less than or equal to 15% p.a. and pro-rata
within this range;
•
12.5% will vest if the aTSR is greater than 15% p.a.
Issue date
10 May 2023
aTSR means the total shareholder return relative to the ARV. ARV means the award reference VWAP of $0.1607.
There were nil performance rights on issue at 30 June 2022.
Valuation of performance rights
The following tables list the inputs to the models used for the performance right tranches for the years ended 30 June 2023:
FOR THE YEAR ENDED 30 JUNE 2023
MANAGEMENT PERFORMANCE RIGHTS
K2H PROJECT TEAM PERFORMANCE RIGHTS
Weighted average fair values at the measurement date ($)
Number of iterations
Dividend yield (%)
Expected volatility (%)
Risk–free interest rate (%)
Expected life of share options
Weighted average share price ($)
Model used
$0.1015
100,000
Nil
55.00%
3.072%
N/A
$0.165
Monte Carlo Model
$0.1650
N/A
Nil
55.00%
3.072%
N/A
$0.165
Black Scholes Model
$0.1650
N/A
Nil
55.00%
3.072%
N/A
$0.165
Black Scholes Model
$0.1015
100,000
Nil
55.00%
3.072%
N/A
$0.165
Monte Carlo Model
GENEX FY2023 - ANNUAL REPORT
88
Note 10.
Administrative expenses
FOR THE YEAR ENDED 30 JUNE
Insurance
Audit, accounting and tax
Compliance and regulatory
General administration
Legal and consultancy related to refinancing
General legal and consultancy
Marketing
Travel
Occupancy
Project Hector
Total administrative expenses
2023
$
1,116,295
523,929
521,296
365,928
296,711
200,874
100,520
92,855
84,912
1,356,349
4,659,669
2022
$
991,405
542,539
643,503
364,855
-
337,850
204,385
77,114
63,591
-
3,225,242
Project Hector expenditure related to costs incurred during the proposed scheme of
arrangement transaction which was considered during the Period, including responding to
the consortium and providing due diligence.
Note 11.
Finance costs
FOR THE YEAR ENDED 30 JUNE
Interest on KS1 and JSP senior debt
Interest on KS1 and JSP subordinated debt
Interest on lease
KS1 and JSP subordinated debt commitment fee
Total finance costs
Note 12.
Income tax
2023
$
3,009,665
1,224,539
191,722
-
4,425,926
2022
$
6,127,745
1,539,528
140,451
18,563
7,826,287
The major components of income tax expense for the years ended 30 June 2023 and 30
June 2022 are set out as follows:
FOR THE YEAR ENDED 30 JUNE
2023
2022
Current income tax
Current income tax charge
Deferred tax
Relating to origination and reversal of temporary differ
Income tax expense reported in the statement of profit or loss
$
-
-
-
GENEX FY2023 - ANNUAL REPORT
$
-
-
-
89
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Deferred tax
Deferred tax relates to the following:
Attributable to:
Depreciation for tax purposes
Capitalised interest
Share based payments
Leases
Government grant
Accrued revenue
Accruals and provisions
Losses available for offsetting against future taxable income
Net deferred tax liabilities
Reflected in the statement of financial position as follows:
Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities, net
2023
$
(4,246,210)
(4,503,573)
1,375,906
116,689
1,925,057
-
2,365,280
2,966,851
-
2022
$
(3,863,706)
(1,844,082)
1,358,444
89,870
2,057,807
(170,090)
2,294,759
76,998
-
9,930,944
(9,930,944)
-
6,843,261
(6,843,261)
-
Deferred tax expense in profit or loss
-
-
The Consolidated Entity has accumulated tax losses (tax effected) of $63,600,94913 (30 June
2022: $50,636,551) that are available indefinitely for offsetting against future taxable profits
of the Consolidated Entity in which the losses arose. Additionally, there are $39,249,668 (30
June 2022: $39,249,668) of transferred tax losses (tax effected) that can be utilised subject
to the available fraction.
Deferred tax assets have not been fully recognised in respect of the tax losses as they may
not be used to offset taxable profits elsewhere in the Consolidated Entity, they have arisen
in subsidiaries that have been loss-making for some time, and there are no other tax
planning opportunities or other evidence of recoverability in the near future.
Tax consolidation
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Members of the tax consolidated group and the tax sharing arrangement
Genex Power Limited and its 100% owned Australian resident subsidiaries formed a tax
consolidated group with effect from 1 July 2005. Genex Power Limited is the head entity of
the tax consolidated group.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
13 Subject to FY2023 income tax return
GENEX FY2023 - ANNUAL REPORT
90
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Genex Solar Holding Pty Limited (99.99% owned by Genex Power Limited) and Genex (Solar)
Pty Limited formed a separate tax consolidated group in 2017. Genex Solar Holding Pty
Limited is the head entity of this tax consolidated group.
Members of the tax consolidated group have entered into a tax sharing agreement that
provides for the allocation of income tax liabilities between the entities should the head
entity default on its tax payment obligations. No amounts have been recognised in the
financial statements in respect of this agreement on the basis that the possibility of default
is remote.
Kidston Solar Finance Co Pty Ltd, Kidston Solar Holding Trust, Kidston Solar Property Trust
and Bulli Creek Solar Farm Pty Ltd are separate tax entities.
Tax effect accounting by members of the tax consolidated group
Measurement method adopted under AASB Interpretation 1052 Tax Consolidation Accounting
The head entity and the controlled entities in each respective tax consolidated group
continue to account for their own current and deferred tax amounts. The head entity has
applied the group allocation approach in determining the appropriate amount of current
taxes and deferred taxes to allocate to members of the tax consolidated group. The current
and deferred tax amounts are measured in a systematic manner that is consistent with the
broad principles in AASB 112 Income Taxes. The nature of the tax funding agreement is
discussed further below.
In addition to its own current and deferred tax amounts, the head entity also recognises
current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses
and unused tax credits assumed from controlled entities in the tax consolidated group.
Nature of the tax funding agreement
Members of the tax consolidated group have entered into a tax funding agreement. Under
the funding agreement, the funding of tax within the tax consolidated group is based on
accounting profit, which is not an acceptable method of allocation under AASB
Interpretation 1052. The tax funding agreement requires payments to/from the head entity
to be recognised via an inter-entity receivable (payable) which is at call. To the extent that
there is a difference between the amount charged under the tax funding agreement and the
allocation under AASB Interpretation 1052, the head entity accounts for these as equity
transactions with the subsidiaries.
The amounts receivable or payable under the tax funding agreement are due upon receipt
of the funding advice from the head entity, which is issued as soon as practicable after the
end of each financial year. The head entity may also require payment of interim funding
amounts to assist with its obligations to pay tax instalments.
GENEX FY2023 - ANNUAL REPORT
91
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
Note 13.
Loss per share
Basic loss per share is calculated by dividing the loss after income tax expense attributable
to the owners of the Parent Entity by the weighted average number of ordinary shares
outstanding during the Period.
Diluted loss per share is calculated by dividing the loss after income tax expense
attributable to the owners of the Parent Entity by the weighted average number of ordinary
shares outstanding during the Period plus the weighted average number of ordinary shares
that would be issued on conversion of all the dilutive potential ordinary shares into ordinary
shares. However, given the loss position of the Consolidated Entity, share options have not
been taken into account in the diluted loss per share calculation since they are anti-dilutive.
The following table reflects the loss and share data used in the basic and diluted loss per
share calculations:
FOR THE YEAR ENDED 30 JUNE
Loss after income tax expense attributable to
the owners of Parent Entity
Weighted average number of ordinary shares for
basic loss per share14
Effects of dilution from:
Share options
Performance rights
Weighted average number of ordinary shares
adjusted for the effect of dilution
Loss per share
Basic loss per share
Diluted loss per share
2023
$
2022
$
(1,027,645)
(4,063,429)
1,385,177,140
1,173,214,164
14,500,000
1,376,303
19,350,000
-
1,401,053,443
1,192,564,164
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
(0.07)
(0.07)
(0.35)
(0.35)
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
There have been no other transactions involving ordinary shares or potential ordinary
shares between the reporting date and the date of authorisation of these financial
statements.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
14 The weighted average number of shares takes into account the weighted average effect of the rights issue during the prior year
GENEX FY2023 - ANNUAL REPORT
92
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Note 14.
Cash and cash equivalents
For purposes of the statement of financial position and statement of cash flows, cash and
cash equivalents comprise the following:
Cash at bank
Total cash and cash equivalents
30 JUNE 2023
30 JUNE 2022
$
49,589,224
49,589,224
$
62,854,694
62,854,694
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Cash flow reconciliation
For purposes of the statement of cash flows, reconciliation of net profit before tax to net
cash flows from operations:
FOR THE YEAR ENDED 30 JUNE
Loss before tax
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and impairment expenses
Share-based payment expense
Finance income
Finance costs
LGCs on hand
Movements in provisions and government grant
Working capital adjustments:
Movements in trade and other receivables and trade and other payables
Movements in other assets and liabilities
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities
2023
2022
$
(1,027,645)
$
(4,063,429)
9,467,607
58,206
(1,707,632)
4,425,926
(234,350)
(180,904)
(3,241,576)
3,098,702
1,707,632
(8,085,952)
-
4,280,014
10,145,774
-
(89,510)
7,826,287
(172,500)
1,029,483
10,446,471
(12,190,043)
89,510
(6,293,488)
-
6,728,555
Note 15.
Trade and other receivables
Trade receivables
Other receivables
Allowance for ECL
30 JUNE 2023
30 JUNE 2022
$
2,764,759
960,749
$
3,300,982
6,472
-
-
Total trade and other receivables
3,725,508
3,307,454
GENEX FY2023 - ANNUAL REPORT
93
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Other receivables as at 30 June 2023 related to contractual rights to receive funds from
joint ventures.
Trade receivables are generally due for settlement within 30 days. As at 30 June 2023 and
30 June 2022, there are no trade receivables either past due or impaired.
Note 16.
Bond, deposits and bank guarantee
K2H financial security
BBP financial security
BBP Autobidder offtake bank guarantee
KS1 connection bond
Sydney office bank guarantee
AEMO bank guarantee
KS1 removal and security defects bond
Brisbane office bank guarantee
K3W land bond
K3W make good bank guarantee
Construction camp bank guarantee
Total bond, deposits and bank guarantee
Financial securities
30 JUNE 2023
30 JUNE 2022
$
117,000,000
10,306,500
350,000
231,818
181,073
140,000
42,000
26,312
12,000
6,000
-
128,295,703
$
61,000,000
10,306,500
-
231,819
214,854
20,000
42,000
26,312
12,000
6,000
83,034
71,942,519
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Financial securities are cash amounts which are paid to, and held by, Powerlink Queensland
as financial security. For K2H, this relates to construction security for the transmission
infrastructure being constructed by Powerlink Queensland under a Generator Connection
and Access Agreement. For BBP, this relates to construction security for the connection
interface works being constructed by Powerlink Queensland under the Bi-directional
Service Provider Connection and Access Agreement.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Note 17.
Property, plant and equipment
30 JUNE 2023
30 JUNE 2022
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
K2H
KS1
JSP
BBP
Pre-development assets
Land
Motor vehicle
Furniture and fittings
Total property, plant and equipment
GENEX FY2023 - ANNUAL REPORT
$
411,425,209
86,625,968
81,182,250
53,825,880
3,918,777
380,935
10,479
-
637,369,498
$
257,029,840
91,774,716
84,450,494
11,177,287
3,918,777
380,935
65,203
-
448,797,252
94
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
K2H
$
KS1
$
JSP
$
BBP
PRE-DEVELOPMENT
ASSETS
$
$
Cost
At 1 July 2021
Additions
Transfer15
Disposals
At 30 June 2022
Additions
At 30 June 2023
103,813,334
153,216,506
-
-
257,029,840
154,395,369
411,425,209
120,349,275
-
-
-
120,349,275
389,114
120,738,389
103,349,171
1,765,137
-
-
105,114,308
225,522
105,339,830
-
9,989,710
1,187,577
-
11,177,287
42,648,593
53,825,880
3,918,777
-
-
-
3,918,777
-
3,918,777
LAND
$
380,935
-
-
-
380,935
-
380,935
K2H
Depreciation and impairment
At 1 July 2021
Depreciation
Disposals
At 30 June 2022
Depreciation
At 30 June 2023
$
-
-
-
-
-
-
KS1
$
JSP
$
(22,982,548)
(5,592,011)
-
(28,574,559)
(5,537,862)
(34,112,421)
(16,500,000)
(4,163,814)
-
(20,663,814)
(3,493,766)
(24,157,580)
BBP
PRE-DEVELOPMENT
ASSETS
LAND
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
K2H
$
KS1
$
JSP
$
BBP
PRE-DEVELOPMENT
ASSETS
$
$
LAND
$
MOTOR
VEHICLE
$
25,320
109,448
-
(25,320)
109,448
-
109,448
MOTOR
VEHICLE
$
(25,320)
(44,245)
25,320
(44,245)
(54,724)
(98,969)
MOTOR
VEHICLE
$
Net book value
At 30 June 2022
257,029,840
91,774,716
84,450,494
11,177,287
At 30 June 2023
411,425,209
86,625,968
81,182,250
53,825,880
3,918,777
3,918,777
380,935
380,935
65,203
10,479
FURNITURE AND
FITTINGS
$
56,732
-
(13,498)
43,234
-
43,234
TOTAL
$
331,893,544
165,080,801
1,187,577
(38,818)
498,123,104
197,658,598
695,781,702
FURNITURE AND
FITTINGS
$
TOTAL
$
(37,603)
(19,129)
13,498
(43,234)
-
(43,234)
(39,545,471)
(9,819,199)
38,818
(49,325,852)
(9,086,352)
(58,412,204)
FURNITURE AND
FITTINGS
$
-
-
TOTAL
$
448,797,252
637,369,498
15 This transfer relates to the BBP development cost being reclassified as property, plant and equipment following the commencement of construction in February 2022.
GENEX FY2023 - ANNUAL REPORT
95
Capitalised borrowing costs
K2H is financed by a debt facility with Northern Australia Infrastructure Facility (NAIF).
Borrowing costs on the debt facility are to be capitalised until the construction of the K2H
is completed. The carrying amount of the debt facility at 30 June 2023 was $412,778,025 (30
June 2022: $198,350,237). The amount of borrowing costs capitalised during the year ended
30 June 2023 was $7,835,618 (FY2022: $2,201,224).
BBP is financed by a senior debt and letter of credit facility with Infradebt. Borrowing costs
on the debt facility are to be capitalised until the construction of the BBP is completed. The
carrying amount of the debt facility at 30 June 2023 was $41,280,296 (30 June 2022:
$9,429,086). The amount of borrowing costs capitalised during the year ended 30 June 2023
was $1,394,929 (FY2022: $230,582).
Disposals of motor vehicles
During the year ended 30 June 2022, the Consolidated Entity sold one utility vehicle with a
total net carrying amount of nil for a cash consideration of $5,737. The net gains on this
disposal were recognised as part of the other income in the statement of profit or loss.
Note 18.
Investment in joint ventures
K3W joint venture
The Consolidated Entity’s interest in Genex (Kidston Wind) Pty Ltd and its subsidiaries
(referred to hereafter as ‘K3WJV’), is assessed to be a joint venture, the principal activity
being the development of the K3W project. The Consolidated Entity’s interest in K3WJV is
accounted for using the equity method in the consolidated financial statements.
Summarised financial information of the joint venture, based on its IFRS financial
statements, and the carrying amount of the investment in the consolidated financial
statements are set out below:
SUMMARISED STATEMENT OF FINANCIAL POSITION OF K3WJV
30 JUNE 2023
Current assets, including cash and cash equivalents and trade receivables
Non-current assets, including development costs
Current liabilities, including trade and other payables
Equity
Consolidated Entity’s carrying amount of the investment
There was no statement of profit or loss during the Period.
$
265,208
4,794,687
(2,289,648)
2,770,247
635,000
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The K3WJV had no contingent liabilities or commitments as at 30 June 2023. K3WJV
cannot distribute its profits without the consent from the two venture partners.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
96
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
BCP joint venture
On 10 August 2022, the Consolidated Entity completed the acquisition of 100% of the
development rights of BCP by way of an acquisition of 75% of the issued share capital of
Bulli Creek Solar Farm Pty Ltd, for a cost of $5,000,000. As at 31 December 2022, the
transaction was assessed and treated as an asset acquisition as it fell outside the scope of
AASB 3 Business Combinations. The Consolidated Entity has elected to measure the non-
controlling interests in the acquiree at fair value.
On 30 June 2023, the Consolidated Entity entered into a joint development agreement with
J-POWER for a 50% economic interest in the Bulli Creek Hold Co. Pty Ltd and its
subsidiaries (referred to hereafter as ‘BCPJV’), a joint venture involved in the development
of the BCP. The Consolidated Entity’s interest in BCPJV is accounted for using the equity
method in the consolidated financial statements. Summarised financial information of the
joint venture, based on its IFRS financial statements, and the carrying amount of the
investment in the consolidated financial statements are set out below:
SUMMARISED STATEMENT OF FINANCIAL POSITION OF BCPJV
30 JUNE 2023
Current assets, including trade receivables
Non-current assets, including development costs and acquisition costs
Current liabilities, including trade and other payables
Non-controlling interest
Equity
Consolidated Entity’s carrying amount of the investment
There was no statement of profit or loss during the Period.
$
540,000
7,511,644
(1,384,977)
(1,666,667)
5,000,000
2,500,000
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The BCPJV had no contingent liability or commitments as at 30 June 2023. BCPJV cannot
distribute its profits without the consent from the two venture partners.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Note 19.
Other assets
K3W development costs
Prepaid insurance
Total other assets
30 JUNE 2023
30 JUNE 2022
$
-
2,876,734
2,876,734
$
1,254,889
5,121,980
6,376,869
During the Period, the Consolidated Entity derecognised the related assets, liabilities and
all components of equity of K3W.
GENEX FY2023 - ANNUAL REPORT
97
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Note 20.
Interest-bearing loans and borrowings
30 JUNE 2023
30 JUNE 2022
$
$
Current
KS1 and JSP senior debt
KS1 and JSP subordinated debt
BBP senior debt
Total current interest-bearing loans and borrowings
Non-Current
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
Total non-current interest-bearing loans and borrowings
6,674,215
4,266,432
4,320,000
15,260,647
144,508,246
7,667,937
412,778,025
36,960,296
601,914,504
KS1 and JSP senior debt
6,961,379
17,180,165
2,320,000
26,461,544
153,292,859
-
198,350,237
7,109,086
358,752,182
The Consolidated Entity has a senior debt facility of $175 million with Westpac, DZ Bank and
NORD/LB. The interest rate for both Tranche A and Tranche B is the aggregate of BBSY bid
and a fixed margin per annum. Both Tranche A and Tranche B will be repaid by 17 December
2024. The facility is secured against the underlying assets comprising KS1 and JSP.
KS1 and JSP subordinated debt
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The Consolidated Entity has a subordinated debt facility of $16 million with the Infradebt Pty
Ltd and its related entities. The interest rate is a fixed rate per annum for the term of the
loan. The facility will be repaid by 17 December 2024. The facility is secured against the
equity shareholding of the Consolidated Entity in KS1 and KSP.
I
D
E
T
A
D
L
O
S
N
O
C
K2H senior debt
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
The Consolidated Entity has a senior debt facility of $610 million with NAIF. At 30 June 2023,
the undrawn committed facility was $200.7 million. The interest rate is a fixed interest rate
per annum for the term of the loan. The repayment will commence from 15 June 2025. The
facility is secured against the underlying assets comprising K2H.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
BBP senior debt
The Consolidated Entity has a senior debt facility of $45.3 million with Infradebt Pty Ltd and
its related entities, comprising a construction loan facility of $35 million and a letter of
credit facility of $10.3 million. At 30 June 2023, the undrawn committed facility was $3
million. The interest rate of the Construction Facility is the aggregate of the PIK margin and
fixed rate per annum and the interest rate of LC Facility is the aggregate of BBSY Bid and
fixed margin per annum. The repayment will commence from 31 March 2024. The facility is
secured against the underlying assets comprising BBP.
GENEX FY2023 - ANNUAL REPORT
98
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
J-POWER corporate loan
The Consolidated Entity has a corporate loan facility of $35 million with J-POWER. At 30
June 2023, the undrawn committed facility was $35 million. The interest rate of the
corporate loan facility is a fixed rate per annum for the term of the loan. The maturity date
of the corporate loan is 31 December 2026. The facility is secured against the underlying
assets comprising Genex’s interests in K3W and BCP.
Note 21.
Government grant
At 1 July
Received during the year
Released to the statement of profit or loss
At 30 June
Current
Non-Current
2023
$
6,859,356
-
(442,500)
6,416,856
443,712
5,973,144
2022
$
7,301,856
441,541
(884,041)
6,859,356
442,500
6,416,856
The Consolidated Entity received an Australian Renewable Energy Agency (ARENA) grant of
$9 million during the year ended 30 June 2017 towards the funding of KS1. This grant is
recognised in other income, over the life of the project (20 years) on a straight-line basis.
The Consolidated Entity has also signed a further agreement with ARENA which provides
for a grant of $20 million which shall be provided on satisfaction of certain construction
milestones for K2H. This grant is not presently recognised in the Consolidated Entity’s
financial statements.
Note 22.
Leases
As a lessee
The Consolidated Entity has lease contracts for land and office rents. Leases of land
generally have lease terms between 3 and 30 years, while office rents generally have lease
terms between 3 and 5 years. The Consolidated Entity’s obligations under its leases are
secured by the issue of unconditional and irrevocable bank guarantees. Generally, the
Consolidated Entity is restricted from assigning and subleasing the leased assets. There
are several lease contracts that include extension and termination options.
The Consolidated Entity also has leases of office equipment with low value. The
Consolidated Entity applies the “short-term lease” and “lease of low-value assets”
recognition exemptions for these leases. The amount recognised in profit or loss for the
Period was $11,389.
Set out below are the carrying amounts of right-of-use assets recognised and the
movements during the period:
GENEX FY2023 - ANNUAL REPORT
99
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Right-of-use assets
At 1 July 2021
Additions
Lease modification
Depreciation expense
Capitalised depreciation
At 30 June 2022
Additions
Lease modification
Depreciation expense
Capitalised depreciation
At 30 June 2023
TOTAL
$
3,885,845
237,806
(150,360)
(326,574)
(428,777)
3,217,940
1,261,270
215,630
(381,255)
(376,379)
3,937,206
Set out below are the carrying amounts of lease liabilities and the movements during the
Period:
Lease liabilities
At 1 July 2021
Additions
Lease modification
Accretion of interest through profit or loss
Accretion of interest through capital expenditures
Payments
At 30 June 2022
Additions
Lease modification
Accretion of interest through profit or loss
Accretion of interest through capital expenditures
Payments
At 30 June 2023
Current
Non-Current
TOTAL
$
4,118,152
237,806
(150,360)
140,451
56,897
(885,438)
3,517,508
1,261,270
215,630
191,722
38,715
(898,676)
4,326,169
770,597
3,555,572
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
The maturity analysis of lease liabilities is disclosed in Note 23.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
100
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The following are the amounts recognised in profit or loss:
FOR THE YEAR ENDED 30 JUNE
Depreciation expense of right-of-use assets
Interest expense on lease liabilities
Total amount recognised in profit or loss
2023
$
381,254
191,722
572,976
2022
$
326,574
140,451
467,025
Note 23.
Financial assets and financial liabilities
Financial assets
Derivatives designated as hedging instruments
Interest rate swaps
Debt instruments at amortised cost
Trade and other receivables
Bond, deposits and bank guarantee
Total financial assets16
Total current
Total non-current
30 JUNE 2023
30 JUNE 2022
$
$
17,605,384
17,310,105
3,725,508
128,295,703
149,626,595
3,725,508
145,901,087
3,307,454
71,942,519
92,560,078
3,307,454
89,252,624
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Derivatives designated as hedging instruments reflect the positive change in fair value of
interest rate swaps, designated as cash flow hedges to hedge against movements in
interest rates.
Debt instruments at amortised cost include trade and other receivables, and bond, deposits
and bank guarantees.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Financial liabilities
MATURITY
30 JUNE 2023
30 JUNE 2022
$
$
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Interest-bearing loans and borrowings
Current interest-bearing loans and borrowings
Lease liabilities
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
BBP senior debt
Total current interest-bearing loans and borrowings
Jun 2024
Apr 2024
Apr 2024
Jun 2024
770,597
483,443
6,674,215
4,266,432
4,320,000
16,031,244
6,961,379
17,180,165
2,320,000
26,944,987
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
16 Financial assets, other than cash and short-term deposits, held by the Consolidated Entity
GENEX FY2023 - ANNUAL REPORT
101
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
MATURITY
30 JUNE 2023
30 JUNE 2022
2024-2048
Non-current interest-bearing loans and borrowings
Lease liabilities
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
J-POWER corporate loan
Total non-current interest-bearing loans and borrowings
Dec 2024
Dec 2024
May 2036
Sep 2035
Dec 2026
3,555,572
3,034,065
144,508,246
7,667,937
412,778,025
36,960,296
-
605,470,076
153,292,859
-
198,350,237
7,109,086
-
361,786,247
Total interest-bearing loans and borrowings
621,501,320
388,731,234
Other financial liabilities
Financial liabilities at amortised cost, other than interest-bearing loans and borrowings
Trade and other payables
Interest payables
15,770,201
1,089,361
13,634,135
1,465,889
30 JUNE 2023
30 JUNE 2022
$
$
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
Total other financial liabilities
16,859,562
15,100,024
Total current
Total non-current
16,859,562
-
15,100,024
-
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Hedging activities and derivatives
The Consolidated Entity is exposed to certain risks relating to its ongoing business
operations. The primary risk managed using derivative instruments is interest rate risk.
The Consolidated Entity’s risk management strategy and how it is applied to manage risk
are also explained below in this note.
Derivatives designated as hedging instruments – cash flow hedges
The Consolidated Entity has designated interest rate swap contracts as hedges for long-
term loan financing for the construction of JSP and refinancing of KS1 portfolio facility.
There is an economic relationship between the hedged items and the hedging instruments
as the terms of the interest rate swap contracts match the terms of the variable rate loan
(i.e. notional amount, maturity, payment and reset dates). The Consolidated Entity has
established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the
interest rate swap contracts is identical to the hedged risk components. To test the hedge
effectiveness, the Consolidated Entity uses the hypothetical derivative method and
compares the changes in the fair value of the hedging instruments against the changes in
fair value of the hedged items attributable to the hedged risks.
GENEX FY2023 - ANNUAL REPORT
102
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
The hedge ineffectiveness can arise from:
• Differences in the timing of the cash flows of the hedged items and the hedging
instruments;
• Different indexes (and accordingly different curves) linked to the hedged risk of the
hedged items and hedging instruments;
• The counterparties’ credit risk differently impacting the fair value movements of the
hedging instruments and hedged items; or
• Changes to the forecasted amount of cash flows of hedged items and hedging
instruments.
The terms of the interest rate swap contracts have been negotiated to match the terms of
the forecast transactions. Both parties to the contracts have fully cash collateralised the
interest rate swap contracts and therefore, effectively eliminated any credit risk associated
with the contracts (both the counterparty’s and Consolidated Entity’s own credit risk).
Consequently, the hedges were assessed to be highly effective.
The Consolidated Entity is holding the following interest rate swap contracts:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
30 JUNE 2023
Counterparty
Currency
Notional
Effective date
Maturity date
Leg
Rate (%)
Margin (%)
Frequency
Day count
Cash flow derivative assets
30 JUNE 2022
Counterparty
Currency
Notional
Effective date
Maturity date
Leg
Rate (%)
Margin (%)
Frequency
Day count
Cash flow derivative assets
TERM INTEREST RATE SWAPS
NOVATION INTEREST RATE SWAPS
NORD/LB, DZ Bank and Westpac
Australian Dollar
$106,014,489
17 Dec 2019
17 Jan 2030
NORD/LB, DZ Bank
Australian Dollar
$50,173,549
1 Oct 2019
1 Jan 2027
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Receive float; Pay fix
Receive float; Pay fix
1.5525%
0.05%
Quarterly
Act / 365 fixed
$16,088,096
3.2350%
0.05%
Quarterly
Act / 365 fixed
$1,517,288
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
TERM INTEREST RATE SWAPS
NOVATION INTEREST RATE SWAPS
NORD/LB, DZ Bank and Westpac
Australian Dollar
$118,652,609
17 Dec 2019
17 Jan 2030
NORD/LB, DZ Bank
Australian Dollar
$47,885,148
1 Oct 2019
1 Jan 2027
Receive float; Pay fix
Receive float; Pay fix
1.5525%
0.05%
Quarterly
Act / 365 fixed
$16,457,210
3.2350%
0.05%
Quarterly
Act / 365 fixed
$852,895
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
103
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
The effect of the cash flow hedge in the statement of profit or loss and other
comprehensive income is, as follows:
FOR THE YEAR ENDED
30 JUNE 2023
TOTAL HEDGING
GAIN/(LOSS)
RECOGNISED IN OCI
INEFFECTIVENESS
RECOGNISED IN
PROFIT OR LOSS
COST OF HEDGING
RECOGNISED
IN OCI
GAIN/(LOSS)
RECLASSIFIED FROM
OCI TO PROFIT OR LOSS
Term interest rate swaps
Novation interest rate swaps
Total
$
(369,114)
664,393
295,279
$
-
-
-
$
-
-
-
$
509,297
(769,020)
(259,723)
FOR THE YEAR ENDED
30 JUNE 2022
TOTAL HEDGING
GAIN RECOGNISED
IN OCI
INEFFECTIVENESS
RECOGNISED IN
PROFIT OR LOSS
COST OF HEDGING
RECOGNISED
IN OCI
GAIN/(LOSS)
RECLASSIFIED FROM
OCI TO PROFIT OR LOSS
Term interest rate swaps
Novation interest rate swaps
Total
$
17,523,880
6,273,977
23,797,857
$
-
-
-
$
-
-
-
$
(1,779,402)
(1,449,716)
(3,229,118)
Financial instruments risk management objectives and policies
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
The Consolidated Entity’s principal financial liabilities, other than derivatives, comprise
loans and borrowings, and trade and other payables. The main purpose of these financial
liabilities is to finance the Consolidated Entity’s operations. The Consolidated Entity’s
principal financial assets, other than derivatives, include trade and other receivables, and
bond, deposits and bank guarantees that derive directly from its operations. The
Consolidated Entity also enters into derivative transactions.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
The Consolidated Entity is exposed to interest rate risk, credit risk and liquidity risk. The
Consolidated Entity’s Board and senior management oversees the management of these
risks. Specifically, this oversight is to ensure that the Consolidated Entity’s financial risk
activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with the Consolidated Entity’s policies
and risk objectives The Board reviews and agrees policies for managing each of these risks,
which are summarised below.
Interest rate risk
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Consolidated Entity’s
exposure to the risk of changes in market interest rates relates primarily to the
Consolidated Entity’s long-term debt obligations with floating interest rates.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
104
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
The Consolidated Entity manages its interest rate risk by having a balanced portfolio of
fixed and variable rate loans and borrowings. The Consolidated Entity’s policy is to maintain
borrowings at fixed rates of interest of not less than 75%, dependent upon period length. To
manage this, the Consolidated Entity enters into either fixed rate loans or interest rate
swaps, in which it agrees to exchange, at specified intervals, the difference between fixed
and variable rate interest amounts calculated by reference to an agreed-upon notional
principal amount. At 30 June 2023, after taking into account the effect of interest rate
swaps, approximately 98% of the Consolidated Entity s borrowings are at a fixed rate of
interest (30 June 2022: 98%).
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Consolidated Entity is not
significantly exposed to credit risk from its operating activities (primarily trade receivables)
given the counterparties with whom it engages and the nature of the trading, however is
exposed to credit risk from its financing activities, including deposits with banks.
At 30 June 2023, the Consolidated Entity invests solely on term deposits with banks that
are graded in AA- or higher category by Standard & Poor’s and therefore, are considered to
be very low credit risk investments.
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
The Consolidated Entity’s maximum exposure to credit risk for the components of the
statement of financial position at 30 June 2023 and 30 June 2022 is the carrying amounts
as illustrated in Note 23 except for derivative financial instruments.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Liquidity risk
Liquidity risk is the risk that a business will have insufficient funds to meet its financial
commitments in a timely manner. The two key elements of liquidity risk are short-term cash
flow risk and long-term funding risk. The Consolidated Entity monitors its risk of a shortage
of funds using cash flow forecasting and assessment of funding facilities.
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
The Consolidated Entity’s objective is to maintain a balance between continuity of funding
and flexibility through the use of debt facilities, operating cash flows and its available
working capital. The Consolidated Entity’s policy also requires the maintenance of a readily
available liquidity buffer over certain forecast periods to meet any unforeseen liquidity
issues.
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
The table below summarises the maturity profile of the Consolidated Entity’s financial
liabilities based on contractual undiscounted payments:
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
105
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
30 JUNE 2023
ON DEMAND
LESS THAN 3
MONTHS
3 TO 12 MONTHS
1 TO 5 YEARS
> 5 YEARS
TOTAL
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
J-POWER corporate loan
Interest
Lease liabilities
Trade and other payables
Net liquidity exposure
-
-
-
-
-
-
-
-
-
1,474,373
1,206,291
-
-
-
1,542,333
243,504
17,859,046
22,325,547
$
$
$
5,199,842
2,171,966
-
4,320,000
-
4,395,314
717,185
-
148,371,357
8,796,166
75,624,426
17,000,000
-
41,834,514
1,718,970
-
$
-
-
$
155,045,572
12,174,423
357,806,004
433,430,430
21,000,000
42,320,000
-
54,939,708
3,689,748
-
-
102,711,869
6,369,407
17,859,046
16,804,307
293,345,433
437,435,460
769,910,747
30 JUNE 2022
ON DEMAND
LESS THAN 3
MONTHS
3 TO 12 MONTHS
1 TO 5 YEARS
> 5 YEARS
TOTAL
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
Interest
Lease liabilities
Trade and other payables
Net liquidity exposure
-
-
-
-
-
-
-
-
1,604,196
17,283,432
-
-
741,346
160,096
13,634,135
33,423,205
$
$
$
5,357,183
155,045,571
-
$
-
-
$
162,006,950
17,283,432
-
-
2,320,000
2,215,637
481,350
-
51,569,029
152,930,539
204,499,568
-
5,407,691
1,213,603
-
8,000,000
3,366,050
3,619,390
-
10,320,000
11,730,724
5,474,439
13,634,135
10,374,170
213,235,894
167,915,979
424,949,248
GENEX FY2023 - ANNUAL REPORT
106
Changes in liabilities arising from financing activities
1 JULY 2022
$
PROCEEDS FROM
BORROWINGS
$
CASH FLOWS
REPAYMENT OF
BORROWINGS
$
ESTABLISHMENT
FEE
$
CAPITALISED
INTEREST
$
LOAN
RECLASSIFICATION
$
ADJUSTMENT
DUE TO EIR
$
30 JUNE 2023
$
Current
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
Non-current
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
6,961,379
17,180,165
-
-
-
-
2,320,000
2,000,000
153,292,859
-
198,350,237
7,109,086
-
16,000,000
206,819,571
30,000,000
(6,961,379)
(17,193,080)
-
-
-
-
-
-
-
-
(3,825,577)
(320,000)
-
-
-
-
-
-
-
-
-
-
7,402,486
-
Total liabilities from financing activities
385,213,726
254,819,571
(27,980,036)
(320,000)
7,402,486
6,674,215
4,266,432
-
-
-
12,915
-
-
6,674,215
4,266,432
-
4,320,000
(6,674,215)
(2,110,398)
144,508,246
(4,266,432)
-
-
-
79,946
205,731
7,667,937
412,778,025
(148,790)
36,960,296
(1,960,596)
617,175,151
GENEX FY2023 - ANNUAL REPORT
107
1 JULY 2021
$
PROCEEDS FROM
BORROWINGS
$
CASH FLOWS
REPAYMENT OF
BORROWINGS
$
ESTABLISHMENT
FEE
$
CAPITALISED
INTEREST
$
LOAN
RECLASSIFICATION
$
ADJUSTMENT
DUE TO EIR
$
30 JUNE 2022
$
Current
Interest-bearing loans and borrowings
KS1 and JSP senior debt
KS1 and JSP subordinated debt
K2H senior debt
BBP senior debt
Non-current
6,687,985
1,047,572
-
-
Interest-bearing loans and borrowings
Solar farms senior debt
Solar farms subordinated debt
161,605,396
20,408,922
-
-
-
-
-
-
K2H senior debt
BBP senior debt
-
-
202,459,155
10,320,000
(8,000,486)
(5,886,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,273,880
20,408,922
-
2,320,000
-
1,609,671
-
-
6,961,379
17,180,165
-
2,320,000
(8,273,880)
(20,408,922)
(38,657)
153,292,859
-
-
(6,100,000)
2,040,413
-
(49,331)
198,350,237
(906,400)
-
(2,320,000)
15,486
7,109,086
Total liabilities from financing activities
189,749,875
212,779,155
(13,886,486)
(7,006,400)
2,040,413
-
1,537,169
385,213,726
GENEX FY2023 - ANNUAL REPORT
108
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Note 24.
Fair value measurement
The following table provides the fair value measurement hierarchy of the Consolidated
Entity’s financial assets and financial liabilities.
AS AT 30 JUNE 2023
FAIR VALUE MEASUREMENT USING
CARRYING
AMOUNT
QUOTED PRICE IN
ACTIVE MARKETS
(LEVEL 1)
SIGNIFICANT
OBSERVABLE
INPUTS (LEVEL 2)
SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)
$
Assets measured at fair value
Interest rate swaps
17,605,384
Liabilities for which fair values are disclosed
Interest-bearing loans and borrowings
617,175,151
Lease liabilities
4,326,169
$
-
-
-
$
17,605,384
617,175,151
4,326,169
AS AT 30 JUNE 2022
FAIR VALUE MEASUREMENT USING
CARRYING
AMOUNT
QUOTED PRICE IN
ACTIVE MARKETS
(LEVEL 1)
SIGNIFICANT
OBSERVABLE
INPUTS (LEVEL 2)
SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)
$
Liabilities measured at fair value
Interest rate swaps
17,310,105
Liabilities for which fair values are disclosed
Interest-bearing loans and borrowings
385,213,726
Lease liabilities
3,517,508
$
-
-
$
17,310,105
385,213,726
3,517,508
$
-
-
-
$
-
-
The fair values of cash, trade receivables, trade payables and other current financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities
of these instruments.
Interest rate swaps
The Consolidated Entity enters into derivative financial instruments principally with
financial institutions with investment grade credit ratings. Interest rate swaps are valued
using valuation techniques, which employ the use of market observable inputs. The most
frequently applied valuation techniques include forward pricing and swap models using
present value calculations. The models incorporate various inputs including the credit
quality of counterparties, interest spot and forward rates and yield curves. All derivative
contracts are fully cash collateralised, thereby eliminating both counterparty risk and the
Consolidated Entity’s own non-performance risk. As at 30 June 2023, the mark-to-market
value of derivative positions is net of a credit valuation adjustment attributable to derivative
counterparty default risk. The changes in counterparty credit risk had no material effect on
the hedge effectiveness assessment for derivatives designated in hedge relationships and
other financial instruments recognised at fair value.
There were no transfers between Level 1 and Level 2, and no transfers into or out of Level 3
during the years ended 30 June 2023 and 30 June 2022.
GENEX FY2023 - ANNUAL REPORT
109
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
There were no changes in the Consolidated Entity's valuation processes, valuation
techniques, and types of inputs used in the fair value measurements during the Period.
Note 25.
Equity
Share capital
30 JUNE 2023
30 JUNE 2022
Shares
$
Shares
$
Ordinary shares issued and fully paid
1,385,177,140
240,572,998
1,385,177,140
240,572,998
Other equity contribution
-
-
-
1,500,000
Total
1,385,177,140
240,572,998
1,385,177,140
242,072,998
Each share has a no par value.
During the year ended 30 June 2023, there were no issuances of ordinary shares. Share
capital was however decreased by $1,500,000 relating to other equity contributions from J-
POWER under the joint development agreement for K3W.
DATE
SHARES
ISSUE PRICE
At 30 June 2021
Equity raising
Share purchase plan
Other equity contribution
Equity raising fees
At 30 June 2022
Other equity contribution
At 30 June 2023
28/02/2022
22/03/2022
1,069,900,045
266,666,667
48,610,428
-
-
1,385,177,140
-
1,385,177,140
Share-based payment reserves
$
$0.15
$0.14
TOTAL
$
195,786,112
40,000,000
7,004,800
1,500,000
(2,217,914)
242,072,998
(1,500,000)
240,572,998
At 30 June 2021
Share-based payments expense during the year
At 30 June 2022
Share-based payments expense during the year
At 30 June 2023
Share-based payments
SHARE-BASED PAYMENT
$
4,528,147
-
4,528,147
58,206
4,586,353
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The share-based payments reserve is used to recognise the value of equity-settled share-
based payments provided to Directors and employees, including KMP, as part of their
remuneration. Refer to Note 9 for further details of these plans.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
110
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
OCI
The only OCI item in equity is the cash flow hedge reserve originated from interest rate swap
contracts. At 30 June 2023, the net of tax value is $17,605,384 (30 June 2022: ($17,310,105)).
Note 26.
Information relating to Genex Power Limited (Parent Entity)
30 JUNE 2023
30 JUNE 2022
Current assets
Total assets
Current liabilities
Total liabilities
Share capital
Share-based payment reserves
Accumulated losses
Total Equity
FOR THE YEAR ENDED 30 JUNE
Loss after income tax expense
Total comprehensive loss of the Parent Entity
$
3,155,918
201,193,670
2,184,494
3,052,612
240,572,998
4,586,353
(47,018,293)
198,141,058
2023
$
13,774,279
13,774,279
$
18,049,792
202,445,605
1,943,315
2,130,587
240,572,998
4,528,147
(44,786,127)
200,315,018
2022
$
19,242,252
19,242,252
The Parent Entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Note 27.
Auditors' remuneration
The auditor of the Consolidated Entity is Ernst & Young Australia.
FOR THE YEAR ENDED 30 JUNE
Fees for auditing the statutory financial report of the
Consolidated Entity
Fees for other assurance and agreed-upon-procedures
services under other legislation or contractual
arrangements where there is discretion as to whether
the service is provided by the auditor or another firm
Other services:
Tax compliance
Transactional tax services
Advisory
Total
GENEX FY2023 - ANNUAL REPORT
2023
$
228,534
2022
$
203,865
10,400
17,160
64,400
37,485
52,125
392,944
41,400
57,000
150,008
469,433
111
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Note 28.
Commitments and contingencies
Capital commitments
At 30 June 2023, the Consolidated Entity has capital commitments of $227,772,350 (30
June 2022: $437,855,756), comprising K2H of $221,097,075 (30 June 2022: $389,440,369)
and BBP of $6,675,275 (30 June 2022: $48,415,387).
Guarantee
The Parent Entity, has provided a completion guarantee for the benefit of the Queensland
State (represented by the NAIF) which remains in effect until the completion of
construction of the K2H project.
Contingent liabilities
The Consolidated Entity is involved in the construction and operation of large-scale
renewable energy generation and storage projects. It therefore in the ordinary course of
business, deals with claims, variations and other requests for payment from a wide range
of contractors. The Consolidated Entity manages these, and their validity, in accordance
with the terms of its underlying contracts. The Directors consider that it is not probable that
the outcome of any individual matters will have a material adverse impact on the business.
As such none of the financial implications of these matters have been provided for in the
financial statements. In this context, the Consolidated Entity does not consider it has any
contingent liabilities as at 30 June 2023 nor at the date of these consolidated financial
statements.
Note 29.
Related party transactions
At 30 June 2022 the Consolidated Entity recognised certain related party transactions with
J-POWER in its financial statements. Following reassessment of the factors and
circumstances concerning the relationship with J-POWER as at 30 June 2023, it was
determined that J-POWER is not considered to be a related party for purposes of AASB 124
Related Party Disclosures and therefore no related party transactions have been disclosed
for the Period
Compensation of KMP of the Consolidated Entity
Disclosures relating to KMP remuneration are set out in the Remuneration Report.
GENEX FY2023 - ANNUAL REPORT
112
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Note 30.
Events after the reporting period
The following material events have occurred since Period end:
• On 1 August 2023, Genex announced the appointment of Patrick McCarthy as CFO of
the Company, commencing from 16 October 2023.
Unless disclosed elsewhere in the consolidated financial statements, there have been no
other material events or circumstances which have arisen since 30 June 2023 that have
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.
Note 31.
Standards issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or
amended but are not yet mandatory, have not been early adopted by the Consolidated Entity
for the annual reporting period ended 30 June 2023. The Consolidated Entity 's assessment
of the impact of these new or amended Accounting Standards and Interpretations, that are
applicable or may have a material impact on the Consolidated Entity, are set out below.
AASB 2020-1 Amendments to AASs – Classification of Liabilities as Current or Non-current
(AASB 101 Presentation of Financial Statements)
The amendments are effective for annual reporting periods beginning on or after 1 January
2023 and must be applied retrospectively. Earlier application is permitted.
The amendments clarify the requirements for classifying liabilities as current or non-
current, specifically:
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
• The amendments specify that the conditions which exist at the end of the reporting
period are those which will be used to determine if a right to defer settlement of a
liability exists;
• Management intention or expectation does not affect the classification of liabilities;
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
and
•
In cases where an instrument with a conversion option is classified as a liability, the
transfer of equity instruments would constitute settlement of the liability for the
purpose of classifying it as current or non-current.
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
The Consolidated Entity is currently assessing the impact the amendments will have on
current practice and whether existing loan agreements may require renegotiation.
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
113
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
AASB 2021-2 Amendments to AASs – Definition of Accounting Estimates (AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors)
The amendments are effective for annual reporting periods beginning on or after 1 January
2023 and must be applied retrospectively. Earlier application is permitted.
The amendments clarify the definition of an accounting estimate, making it easier to
differentiate it from an accounting policy. The distinction is necessary as their treatment
and disclosure requirements are different. Critically, a change in an accounting estimate is
applied prospectively whereas a change in an accounting policy is generally applied
retrospectively. The new definition also provides that ‘Accounting estimates are monetary
amounts in financial statements that are subject to measurement uncertainty'.
The amendments are not expected to have a material impact on the Consolidated Entity’s
financial statements.
GENEX FY2023 - ANNUAL REPORT
114
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
8. DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Genex Power Limited, I state that:
1. In the opinion of the Directors:
(a) the financial statements and notes of Genex Power Limited for the financial year
ended 30 June 2023 are in accordance with the Corporations Act 2001, including:
i.
giving a true and fair view of the Consolidated Entity’s financial position as
at 30 June 2023 and of its performance for the year ended on that date;
and
ii.
complying with Accounting Standards and the Corporations Regulations
2001; and
(b) the financial statements and notes also comply with International Financial
Reporting Standards as disclosed in Note 2.1; and
(c) there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
2. This declaration has been made after receiving the declarations required to be made to
the Directors by the Chief Executive Officer and Chief Financial Officer in accordance with
section 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
On behalf of the Board
Dr Ralph Craven
Independent Non-executive Chairman
25 August 2023
Sydney, Australia
GENEX FY2023 - ANNUAL REPORT
115
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent auditor’s report to the members of Genex Power Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Genex Power Limited (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 30
June 2023, the consolidated statement of comprehensive income, consolidated statement of changes
in equity and consolidated statement of cash flows for the year then ended, notes to the 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 30 June 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.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Carrying Value of Property, Plant and Equipment
Why significant
How our audit addressed the key audit matter
As at 30 June 2023, the Group recognised
Property, Plant and Equipment of $637.4m.
Our audit procedures included the following:
- Assessed whether the methodology and
The recognition and recoverability of the
Group’s Property, Plant and Equipment was
considered a key audit matter due to the value
of the asset relative to total assets, and the
significant judgements and assumptions
involved in the Group’s assessment of whether
any indicators of impairment were present, as
required by AASB 136 Impairment of Assets.
factors considered by the Group to identify
indicators of impairment or impairment
reversals met the requirements of
Australian Accounting Standards.
-
Selected a sample of the construction costs
capitalised to Property, Plant and
Equipment and agreed these to the
supporting supplier invoices, cash payments
and assessed whether the cost was
appropriately capitalised in accordance with
Australian Accounting Standards.
- Assessed the adequacy of the Property,
Plant and Equipment related disclosures
included in the Notes to the financial report
including those made with respect to
judgements and estimates.
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 included in the Company’s 2023 annual report, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do 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, 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.
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.
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 35 to 51 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Genex Power Limited for the year ended 30 June 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
Ryan Fisk
Partner
Sydney
25 August 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
10. CORPORATE GOVERNANCE STATEMENT
This Corporate Governance Statement (CGS) is provided by the Directors of Genex pursuant to ASX Listing Rule 4.10.3 and reports against
the ASX Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations’ 4th Edition (the Recommendations)
including the 8 principles and 35 specific recommendations included therein. This CGS was approved by a resolution of the Board of the
Company dated 25 August 2023 and is effective as at the same date and is in addition to and supplements the Company’s Appendix 4G
which is lodged with the ASX together with this Annual Report to Shareholders.
PRINCIPLE 1:
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
Recommendations
A listed entity should have and disclose a
board charter setting out:
1.1
(a) the respective roles and responsibilities of
its board and management; and
(b) those matters expressly reserved to the
board and those delegated to
management.
A LISTED ENTITY SHOULD CLEARLY DELINEATE THE RESPECTIVE ROLES AND RESPONSIBILITIES OF
ITS BOARD AND MANAGEMENT AND REGULARLY REVIEW THEIR PERFORMANCE.
(a) The Company’s Corporate Governance Plan includes a Board Charter, which discloses the specific
responsibilities and functions of the Board and provides that the Board shall delegate responsibility for
the day-to-day operations and administration of the Company to the Managing Director (MD) or
equivalent which is currently the CEO.
The Board Charter also specifically outlines the role of the Board, the Company’s Chair, Individual
Directors and the MD/CEO. Each function and its responsibility are outlined in the Board Charter and in
various sections of this this Corporate Governance Statement, both of which are available on the
Company’s website.
The role and responsibility of the Board, the Company’s Chair, Individual Directors and the MD/CEO is
outlined in the following paragraphs of the Company’s Board Charter:
• The Board – Paragraph 3.1;
• The Chair – Paragraph 8.1;
• The Individual Directors – Paragraph 8.2; and
• The MD/CEO – Paragraph 8.3.
(b) The Board is responsible for, and has the authority to determine, all matters relating to the strategic
direction, purpose, values, policies, practices, goals for management and the operation of the Company.
Without intending to limit this general role of the Board, the specific functions and responsibilities of
the Board include those matters particularised in paragraph 3.1 of the Company’s Board Charter.
GENEX FY2023 - ANNUAL REPORT
120
PRINCIPLE 1:
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
A LISTED ENTITY SHOULD CLEARLY DELINEATE THE RESPECTIVE ROLES AND RESPONSIBILITIES OF
ITS BOARD AND MANAGEMENT AND REGULARLY REVIEW THEIR PERFORMANCE.
The MD/CEO is separately responsible for the ongoing management of the Company in accordance with
the strategy, purpose, values, policies and programs approved by the Board as outlined in paragraph 8.3.
1.2
A listed entity should:
(a) Prior to the nomination of prospective on-executive directors for election or re-election, the Board
must obtain from the prospective candidate:
(a) undertake appropriate checks before
appointing a director or senior executive,
or putting someone forward for election as
a director; and
(b) provide securityholders with all material
information in its possession relevant to a
decision on whether or not to elect or re-
elect a director.
• details of other commitments of the prospective candidate (including the potential for any
actual or perceived conflicts of interest at the time of the candidate’s appointment or in the
foreseeable future) and an indication of the time involved; and
an acknowledgement that the prospective candidate will have sufficient time to meet the
requirements of non-executive directors of the Company.
•
All of the Company’s current Directors have undergone bankruptcy and police checks and appropriate
checks will also be undertaken prior to the appointment of any new directors to the Board or any new
candidates for election.
(b) When a candidate is placed before shareholders for election or re-election as a director, the names of
candidates submitted is accompanied by the following information to enable shareholders to make an
informed decision in relation to that vote:
• biographical details, including competencies and qualifications and information sufficient to
enable an assessment of the independence of the candidate;
• details of relationships between the candidate and the Company, and the candidate and
Directors of the company;
• whether the Board considers the person to be independent;
• other directorships held;
• particulars of other positions which involve significant time commitments;
•
•
the term of office currently served by any director subject to re-election;
for new candidates, confirmation that the Company has conducted appropriate checks into the
candidate’s background and experience and whether those checks have revealed any
information of concern that might affect the person’s ability to perform the role or a
shareholder’s decision on how to vote on a resolution for the appointment of that candidate;
a statement as to whether the Board supports the election or re-election of the candidate and
the reasons why; and
any other particulars required by law.
•
•
GENEX FY2023 - ANNUAL REPORT
121
1.3
1.4
PRINCIPLE 1:
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
A listed entity should have a written
agreement with each director and senior
executive setting out the terms of their
appointment.
A LISTED ENTITY SHOULD CLEARLY DELINEATE THE RESPECTIVE ROLES AND RESPONSIBILITIES OF
ITS BOARD AND MANAGEMENT AND REGULARLY REVIEW THEIR PERFORMANCE.
The Company currently has Executive Service Agreements in place with its CEO, COO and CFO. In
addition, the Company has a Letter of Appointment with each of its Non-executive Directors other than
Mr Kenichi Seshimo who is a shareholder representative and does not receive any remuneration from
Genex. All remunerated Directors provide their services as directors to the entity in an individual
capacity and may also provide any additional exertion type services through a service entity.
The company secretary of a listed entity
should be accountable directly to the board,
through the chair, on all matters to do with the
proper functioning of the board.
The Secretary is accountable to the Board through the Chair on all governance matters and also on all
matters to do with the proper functioning of the Board. The Secretary is generally responsible for
carrying out the administrative and legislative requirements of the Board. The Secretary holds primary
responsibility for ensuring that the Board processes, procedures and policies run efficiently and
effectively, and the Secretary’s role of responsibilities is outlined in paragraph 8.4 of the Board Charter.
1.5
A listed entity should:
(a) have and disclose a diversity policy;
(b) Through its board or a committee of the
board, set measurable objectives for
achieving gender diversity in the
composition of its board, senior executives
and workforce generally; and
(a) The Company has established a Diversity Policy as part of its Corporate Governance Plan. The Policy
details the Board’s commitment to providing an inclusive workplace and recognises the value that a
workforce made up of individuals with diverse skills, values, backgrounds and experiences can bring to
the Company. The Company has a commitment to gender diversity and female participation is sought in
all areas of the Company’s business. Decisions relating to promotion, leadership development and
flexible work arrangements are based on merit and reinforce the importance of equality in the
workplace. Ongoing monitoring of Company policies and culture is undertaken to make sure they do not
hold any group back in their professional development.
(c) disclose in relation to each reporting
period:
(b) While the Company has not yet set measurable objectives for achieving gender diversity with respect
to the composition of its board, senior executives or workforce generally, the Company aims to achieve
gender diversity in all areas of its business.
(1) the measurable objectives set for that
period to achieve gender diversity;
(2) the entity’s progress towards achieving
those objectives; and
(3) either:
(A) the respective proportions of men
and women on the board, in senior
(c)(1) As stated in (b) above, the Company has not yet set measurable objectives in terms of a specific
quota or ratio but adopts an approach of aiming to achieve gender diversity in every new appointment to
the board, at senior executive level or in the workforce generally.
(c) (2) The Company is making progress towards gender diversity with female board and senior executive
appointments. The Company will continue to strive for gender diversity and will establish measurable
objectives for achieving gender diversity when it has grown to a point where it is appropriate to do so.
The Board regularly reviews its policy and practical approach in achieving gender diversity to determine
its adequacy for current circumstances and make appropriate recommendations where required. The
GENEX FY2023 - ANNUAL REPORT
122
PRINCIPLE 1:
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
executive positions and across the
whole workforce (including how the
entity has defined “senior
executive” for these purposes); or
(B) if the entity is a “relevant employer”
under the Workplace Gender
Equality Act, the entity’s most
recent “Gender Equality Indicators”,
as defined in and published under
that Act.
A LISTED ENTITY SHOULD CLEARLY DELINEATE THE RESPECTIVE ROLES AND RESPONSIBILITIES OF
ITS BOARD AND MANAGEMENT AND REGULARLY REVIEW THEIR PERFORMANCE.
Company’s Corporate Governance Statement each year contains an update on the Company’s
compliance with the ASX’s recommendations and the Company’s Diversity Policy.
Each year, the Company reviews and, where appropriate, updates its Diversity Policy to ensure that it
not only reflects the Company’s approach to gender diversity but also to state that in employing new
people it recognises that people differ not just on the basis of gender, race or ethnicity, but also other
dimensions such as lifestyle, cultural or socio-economic background, education, physical ability, age,
marital or and family status, perspective and experience.
The latest version of the policy also reflects the Company’s expanded approach to ensure a culture that
supports diversity. The Company supports flexible work practices (including part time positions) to best
accommodate business, family or personal choices where practicable and aims to provide opportunities
for employees on extended parental leave to maintain their connection with the entity, for example, by
offering them the option (without any obligation) to receive all-staff communications and to attend work
functions and training programs.
In order to have an inclusive workplace, discrimination, harassment, vilification and victimisation cannot
and will not be tolerated.
(c)(3)(A) The Company currently has 17 employees and 1 consultant with 7 of these in total, women. The
Company has 3 women in Senior Executive positions with the definition of a “senior executive” according
to generally well-known market practice and definitions. The Company has 1 female director. This will
continue to be reviewed in accordance with each review of the Board’s skills and requirements in
accordance with the Company’s Diversity Policy.
(c)(3)(B) The entity is not a “relevant employer”.
1.6
A listed entity should:
(a) The Chair is responsible for overseeing the:
(a) have and disclose a process for periodically
evaluating the performance of the board,
its committees and individual directors;
and
•
•
evaluation and review of the performance of the Board and its committees (other than the
Chair); and
evaluation and review of the performance of individual Directors (other than the Chair);
The Chair should disclose the process for evaluating the performance of the Board, its committees and
individual Directors.
GENEX FY2023 - ANNUAL REPORT
123
PRINCIPLE 1:
LAY SOLID FOUNDATIONS FOR MANAGEMENT
AND OVERSIGHT
(b) disclose for each reporting period, whether
a performance evaluation has been
undertaken in accordance with that
process during or in respect of that period.
A LISTED ENTITY SHOULD CLEARLY DELINEATE THE RESPECTIVE ROLES AND RESPONSIBILITIES OF
ITS BOARD AND MANAGEMENT AND REGULARLY REVIEW THEIR PERFORMANCE.
The Board (other than the Chair) is responsible for the:
•
•
evaluation and review of the performance of the Chair; and
review of the effectiveness and programme of Board meetings.
The process for the performance evaluation of the Board, its Committees and Directors generally
involves an internal review. From time to time as the Company’s needs and circumstances require, the
Board may commission an external review of the Board, and its composition.
(b) An outsourced external review of the Board was undertaken in early 2022 in accordance with the
Company’s formal protocols.
(a) The Board will monitor the performance of senior management, including measuring actual
performance against planned performance. The Board Charter sets out the process to be followed in
evaluating the performance of senior executives. Each senior executive is required to participate in a
formal review process which assesses individual performance against predetermined objectives.
(b) A formal evaluation occurred immediately post the end of FY2023 in accordance with formal
protocols established by the Company.
1.7
A listed entity should:
(a) have and disclose a process for evaluating
the performance of its senior executives at
least once every reporting period; and
(b) disclose for each reporting period, whether
a performance evaluation has been
undertaken in accordance with that
process during or in respect of that period.
PRINCIPLE 2:
STRUCTURE THE BOARD TO BE EFFECTIVE
AND ADD VALUE
Recommendations
The board of a listed entity should:
2.1
(a) have a nomination committee which:
THE BOARD OF A LISTED ENTITY SHOULD BE OF AN APPROPRIATE SIZE AND COLLECTIVELY HAVE
THE SKILLS, COMMITMENT AND KNOWLEDGE OF THE ENTITY AND THE INDUSTRY IN WHICH IT
OPERATES, TO ENABLE IT TO DISCHARGE ITS DUTIES EFFECTIVELY, AND TO ADD VALUE.
(a) The Board, as a whole, currently serves as the Company’s Nomination Committee. Terms and
conditions of employees are negotiated by the MD/CEO for recommendation to the Board. As the
Company grows in size it is planned that the Company will implement a separate Nomination Committee
with its own separate Nomination Committee charter.
GENEX FY2023 - ANNUAL REPORT
124
THE BOARD OF A LISTED ENTITY SHOULD BE OF AN APPROPRIATE SIZE AND COLLECTIVELY HAVE
THE SKILLS, COMMITMENT AND KNOWLEDGE OF THE ENTITY AND THE INDUSTRY IN WHICH IT
OPERATES, TO ENABLE IT TO DISCHARGE ITS DUTIES EFFECTIVELY, AND TO ADD VALUE.
(b) While the Board does not currently comply with this recommendation, given the stage of the
Company’s operations and relatively small number of employees, the Board is of the view that it is
currently structured in such a way so as to add value and is appropriate for the complexity of the
business at this time.
The Board shall ensure that, collectively, it has the appropriate range of skills and expertise to properly
fulfil its responsibilities, including:
accounting;
finance;
•
•
• business;
•
•
• Managing Director / CEO level experience; and
•
legal, regulatory and compliance;
the renewable energy industry;
relevant technical expertise.
The Board shall review the range of expertise of its members on a regular basis and ensure that it has
operational and technical expertise relevant to the operation of the Company.
PRINCIPLE 2:
STRUCTURE THE BOARD TO BE EFFECTIVE
AND ADD VALUE
(1) has at least three members, a majority
of whom are independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period,
the number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; OR
(b) if it does not have a nomination committee,
disclose that fact and the processes it
employs to address board succession
issues and to ensure that the board has the
appropriate balance of skills, knowledge,
experience, independence and diversity to
enable it to discharge its duties and
responsibilities effectively.
2.2
A listed entity should have and disclose a
board skills matrix setting out the mix of skills
that the board currently has or is looking to
achieve in its membership.
The Board will determine the procedure for the selection and appointment of new Directors and the re-
election of incumbents in accordance with the Company’s Constitution, the ASX Listing Rules and having
regard to the ability and independence of the individual to contribute to the ongoing effectiveness of the
Board, to exercise sound business judgement, to commit the necessary time to fulfil the requirements
of the role effectively and to contribute to the development of the strategic direction, purpose and
values of the Company.
The Board shall ensure that, collectively, it has the appropriate range of skills and expertise to properly
fulfil its responsibilities, including:
GENEX FY2023 - ANNUAL REPORT
125
PRINCIPLE 2:
STRUCTURE THE BOARD TO BE EFFECTIVE
AND ADD VALUE
THE BOARD OF A LISTED ENTITY SHOULD BE OF AN APPROPRIATE SIZE AND COLLECTIVELY HAVE
THE SKILLS, COMMITMENT AND KNOWLEDGE OF THE ENTITY AND THE INDUSTRY IN WHICH IT
OPERATES, TO ENABLE IT TO DISCHARGE ITS DUTIES EFFECTIVELY, AND TO ADD VALUE.
accounting;
finance;
•
•
• business;
•
•
• Managing Director-level experience; and
•
legal, regulatory and compliance
the renewable energy industry;
relevant technical expertise.
2.3
A listed entity should disclose:
(a) the names of the directors considered by
the board to be independent directors;
(b) if a director has an interest, position or
relationship of the type described in
Box 2.3 but the board is of the opinion that
it does not compromise the independence
of the director, the nature of the interest,
position or relationship in question and an
explanation of why the board is of that
opinion; and
(c) the length of service of each director.
The mix of skills of the current Board is set out on the Company’s website.
(a) Currently only 2 of the 5 Directors are considered to be independent given that Simon Kidston and
Ben Guo were previously Executive Directors and Kenichi Seshimo is a representative of a large
shareholder of the Company. The independent Directors are Dr Ralph Craven, the Company’s Non-
Executive Chair, and Ms Teresa Dyson, both Non-Executive Directors.
(b) Not applicable. While each of the Directors have received grants of options approved by shareholders
in the past, these have not had any specific performance hurdles or vesting milestones attached other
than an exercise price well above the share price as at the date of the grant. Additionally, while the
independent Directors have received payments for services rendered over and above their duties as
Non-executive Independent Directors, these are not performance-based payments but payments for
actual exertion services provided on an arm’s length basis and not of sufficient duration for the
independence of these directors to be compromised.
(c) The Directors were appointed to the Board as follows:
Dr Ralph Craven – 29 May 2015
Mr Simon Kidston - 1 August 2013
Mr Ben Guo – 25 October 2013
Ms Teresa Dyson – 7 May 2018
Mr Kenichi Seshimo – 18 May 2021
2.4
A majority of the board of a listed entity should
be independent directors.
The Company does not currently have a majority of independent directors however the Board is of the
view that notwithstanding that it does not currently comply with this recommendation it nonetheless
has the appropriate mix of skills and experience for the Company’s present stage of operations. The
Company does however have a majority of non-executive directors with all 5 filling that role.
GENEX FY2023 - ANNUAL REPORT
126
2.5
2.6
PRINCIPLE 2:
STRUCTURE THE BOARD TO BE EFFECTIVE
AND ADD VALUE
The chair of the board of a listed entity should
be an independent director and, in particular,
should not be the same person as the CEO of
the entity.
A listed entity should have a program for
inducting new directors and for periodically
reviewing whether there is a need for existing
directors to undertake professional
development to maintain the skills and
knowledge needed to perform their role as
directors effectively.
THE BOARD OF A LISTED ENTITY SHOULD BE OF AN APPROPRIATE SIZE AND COLLECTIVELY HAVE
THE SKILLS, COMMITMENT AND KNOWLEDGE OF THE ENTITY AND THE INDUSTRY IN WHICH IT
OPERATES, TO ENABLE IT TO DISCHARGE ITS DUTIES EFFECTIVELY, AND TO ADD VALUE.
The Company’s current Chair is Dr Ralph Craven who is an independent director and is not engaged in any
executive role within the Company.
Pursuant to the Company’s Board Charter the Board must implement an appropriate induction and
education process for new Board appointees and senior executives to enable them to gain a better
understanding of:
•
•
•
•
the Company’s financial, strategic, operational and risk management position;
the rights, duties and responsibilities of the directors;
the roles and responsibilities of senior executives; and
the role of Board committees.
Existing directors are required to participate in development initiatives from time to time including in
relation to health and safety.
PRINCIPLE 3:
INSTIL A CULTURE OF ACTING LAWFULLY,
ETHICALLY AND RESPONSIBLY
Recommendations
A listed entity should articulate and disclose
its values.
3.1
A LISTED ENTITY SHOULD INSTIL AND CONTINUALLY REINFORCE A CULTURE ACROSS THE
ORGANISATION OF ACTING LAWFULLY, ETHICALLY AND RESPONSIBLY.
(a) The Company’s Corporate Governance Plan includes the following policies and charters which provide
a framework for decisions and actions in relation to ethical conduct in employment.
• Board Charter;
• Audit and Risk Management Committee Charter;
• Code of Conduct – Obligations to Stakeholders;
• Code of Conduct – Directors and Key Officers;
• Continuous Disclosure Policy;
• People and Remuneration Committee Charter;
• Securities Trading Policy;
• Diversity Policy;
GENEX FY2023 - ANNUAL REPORT
127
PRINCIPLE 3:
INSTIL A CULTURE OF ACTING LAWFULLY,
ETHICALLY AND RESPONSIBLY
A LISTED ENTITY SHOULD INSTIL AND CONTINUALLY REINFORCE A CULTURE ACROSS THE
ORGANISATION OF ACTING LAWFULLY, ETHICALLY AND RESPONSIBLY.
• Whistleblower Policy;
• Modern Slavery Policy; and
• Environmental Policy.
(b) A copy of each charter and policy, including the codes of conduct relating to Directors, Senior
Executives and employees is available on the Company’s website.
3.2
A listed entity should:
(a) The Company has a “Code of Conduct for Directors and Key Officers” which includes senior executives
and employees; and
(a) have and disclose a code of conduct for its
directors, senior executives and
employees; and
(b) ensure that the board or a committee of
the board is informed of any material
breaches of that code.
(b) Any material breaches of this policy are brought directly before the Board.
3.3
A listed entity should:
(a) The Company has a whistleblower policy; and
(a) have and disclose a whistleblower policy;
(b) Any material breaches of this policy are brought directly before the Board.
and
(b) ensure that the board or a committee of
the board is informed of any material
incidents reported under that policy.
3.4
A listed entity should:
(a) have and disclose an anti-bribery and
(a) The Company has a policy titled “Code of Conduct – the Company’s obligations to Stakeholders” which
operates as the Company’s anti-bribery and corruption policy; and
corruption policy; and
(b) Any material breaches of this policy are brought directly before the Board.
(b) ensure that the board or a committee of
the board is informed of any material
breaches of that policy.
GENEX FY2023 - ANNUAL REPORT
128
A LISTED ENTITY SHOULD HAVE APPROPRIATE PROCESSES TO VERIFY THE INTEGRITY OF ITS
CORPORATE REPORTS.
(a) The Company has an Audit and Risk Management Committee which:
(1) has 3 members being Ms Teresa Dyson, Dr Ralph Craven and Mr Kenichi Seshimo. All of the committee
members are non-executive directors and a majority of the committee being Ms Teresa Dyson and Dr
Ralph Craven are independent.
(2) is chaired by an independent director being Ms Teresa Dyson who is not the Chair of the board.
(3) A copy of the policy titled “Charter of the Audit and Risk Management Committee of Genex Power
Limited” is available on the Company’s website.
(4) The relevant qualifications and experience of the Committee members is available on the Company’s
website.
(5) The Committee met 5 times in the financial year with all persons who were members of the
committee at the time each meeting was held being in attendance.
(b) Not applicable.
PRINCIPLE 4:
SAFEGUARD THE INTEGRITY OF CORPORATE
REPORTS
Recommendations
The board of a listed entity should:
4.1
(a) have an audit committee which:
(1) has at least three members, all of whom
are non-executive directors and a
majority of whom are independent
directors; and
(2) is chaired by an independent director,
who is not the chair of the board, and
disclose:
(3) the charter of the committee;
(4) the relevant qualifications and
experience of the members of the
committee; and
(5) in relation to each reporting period, the
number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; OR
(b) if it does not have an audit committee,
disclose that fact and the processes it
employs that independently verify and
safeguard the integrity of its corporate
reporting, including the processes for the
appointment and removal of the external
GENEX FY2023 - ANNUAL REPORT
129
A LISTED ENTITY SHOULD HAVE APPROPRIATE PROCESSES TO VERIFY THE INTEGRITY OF ITS
CORPORATE REPORTS.
The Board ensures and has received on each occasion that it approves the Company’s statutory
accounts, the appropriate declarations and assurances including a declaration from the CEO and CFO
that the Company’s accounts have been kept in accordance with section 295A of the Corporations Act
2001 and received such declarations in the financial year.
4.2
PRINCIPLE 4:
SAFEGUARD THE INTEGRITY OF CORPORATE
REPORTS
auditor and the rotation of the audit
engagement partner.
The board of a listed entity should, before it
approves the entity’s financial statements for
a financial period, receive from its CEO and
CFO a declaration that, in their opinion, the
financial records of the entity have been
properly maintained and that the financial
statements comply with the appropriate
accounting standards and give a true and fair
view of the financial position and performance
of the entity and that the opinion has been
formed on the basis of a sound system of risk
management and internal control which is
operating effectively.
4.3
A listed entity should disclose its process to
verify the integrity of any periodic corporate
report it releases to the market that is not
audited or reviewed by an external auditor.
The Company ensures that a copy of every announcement to the market is sent to every Board member
and senior executive for review and comment prior to release to the ASX which includes the Company’s
Appendix 4C and associated commentary every quarter and each such announcement states that it has
been approved by the Board. The Board is of the view that having each announcement reviewed includes
an appropriate and necessary level of oversight of all statements made to the market.
In certain circumstances, for matters of a non-material nature and where full Board review and approval
are not feasible, such announcements may be stated as approved by the CEO.
GENEX FY2023 - ANNUAL REPORT
130
PRINCIPLE 5:
MAKE TIMELY AND BALANCED DISCLOSURE
Recommendations
A listed entity should have and disclose a
written policy for complying with its
continuous disclosure obligations under listing
rule 3.1.
A listed entity should ensure that its board
receives copies of all material market
announcements promptly after they have been
made.
A LISTED ENTITY SHOULD MAKE TIMELY AND BALANCED DISCLOSURE OF ALL MATTERS
CONCERNING IT THAT A REASONABLE PERSON WOULD EXPECT TO HAVE A MATERIAL EFFECT ON
THE PRICE OR VALUE OF ITS SECURITIES.
The Company has a continuous disclosure program/policy in place designed to ensure compliance with
the ASX Listing Rules on continuous disclosure and to ensure accountability at a senior executive level
for compliance and factual presentation of the Company’s financial position.
The Company Secretary ensures that a copy of all market announcements is provided to the Board
either immediately before or immediately after release to the ASX. This practice has been adopted by
the Company since its listing in 2015.
A listed entity that gives a new and substantive
investor or analyst presentation should
release a copy of the presentation materials
on the ASX Market Announcements Platform
ahead of the presentation.
As stated in the responses to 4.3 and 5.2, the Company ensures that a copy of every announcement to
the market is sent to every Board member and senior executive for review and comment prior to release
to the ASX which includes any new and substantive investor presentation. The Company Secretary also
ensures that a copy of the investor presentation is provided to the Board either immediately before or
immediately after release to the ASX.
PRINCIPLE 6:
RESPECT THE RIGHTS OF SECURITY HOLDERS
Recommendations
A listed entity should provide information
about itself and its governance to investors via
its website.
A listed entity should have an investor
relations program that facilitates effective
two-way communication with investors.
A LISTED ENTITY SHOULD PROVIDE ITS SECURITY HOLDERS WITH APPROPRIATE INFORMATION AND
FACILITIES TO ALLOW THEM TO EXERCISE THEIR RIGHTS AS SECURITY HOLDERS EFFECTIVELY.
The Company’s Corporate Governance Plan includes a shareholder communications strategy which aims
to ensure that shareholders are informed of all major developments affecting the Company’s state of
affairs. This is contained within the Company’s policies titled “Code of Conduct – Obligations to
Stakeholders” and “Continuous Disclosure Policy”. The policies are available on the Company’s website.
The Company’s Corporate Governance Plan includes a shareholder communications strategy which is
outlined in 6.1.
A listed entity should disclose how it
facilitates and encourages participation at
meetings of security holders.
The Company’s Corporate Governance Plan includes a shareholder communications strategy which is
outlined in 6.1. The Company also encourages shareholders to attend the Company’s Annual General
Meeting (AGM) in person and to ask questions of the Board and the Auditor and/or to submit questions in
5.1
5.2
5.3
6.1
6.2
6.3
GENEX FY2023 - ANNUAL REPORT
131
PRINCIPLE 6:
RESPECT THE RIGHTS OF SECURITY HOLDERS
A LISTED ENTITY SHOULD PROVIDE ITS SECURITY HOLDERS WITH APPROPRIATE INFORMATION AND
FACILITIES TO ALLOW THEM TO EXERCISE THEIR RIGHTS AS SECURITY HOLDERS EFFECTIVELY.
writing in advance. A proposed change to the Company’s constitution to allow AGMs to be held both in
person and online, was rejected by shareholders at its AGM in 2021.
6.4
6.5
A listed entity should ensure that all
substantive resolutions at a meeting of
security holders are decided by a poll rather
than by a show of hands.
A listed entity should give security holders the
option to receive communications from, and
send communications to, the entity and its
security registry electronically.
The Company has implemented a policy of ensuring that all resolutions at an AGM or Extraordinary
General Meeting are decided by a poll.
The Company has such a practice already in place for all shareholders.
PRINCIPLE 7:
RECOGNISE AND MANAGE RISK
Recommendations
The board of a listed entity should:
7.1
(a) have a committee or committees to
oversee risk, each of which:
A LISTED ENTITY SHOULD ESTABLISH A SOUND RISK MANAGEMENT FRAMEWORK AND PERIODICALLY
REVIEW THE EFFECTIVENESS OF THAT FRAMEWORK.
(a) The Board in conjunction with the Audit and Risk Management Committee determines the Company’s
“risk profile” and is responsible for overseeing and approving risk management strategy and policies,
internal compliance and internal control.
(1) has at least three members, a majority
of whom are independent directors; and
(1) has 3 members being Ms Teresa Dyson, Dr Ralph Craven and Mr Kenichi Seshimo. All of the committee
members are non-executive and a majority of the committee being Ms Teresa Dyson and Dr Ralph
Craven are independent.
(2) is chaired by an independent director,
(2) is chaired by an independent director being Ms Teresa Dyson who is not the Chair of the Board.
and disclose:
(3) the charter of the committee;
(3) A copy of the policy titled “Charter of the Audit and Risk Management Committee of Genex Power
Limited” is available on the Company’s website.
(4) the members of the committee; and
(4) The members of the committee are Ms Teresa Dyson (Chair), Dr Ralph Craven (Member) and Mr
Kenichi Seshimo (member).
(5) as at the end of each reporting period,
the number of times the committee met
GENEX FY2023 - ANNUAL REPORT
132
PRINCIPLE 7:
RECOGNISE AND MANAGE RISK
throughout the period and the individual
attendances of the members at those
meetings; OR
(b) if it does not have a risk committee or
committees that satisfy (a) above, disclose
that fact and the processes it employs for
overseeing the entity’s risk management
framework.
7.2
The board or a committee of the board should:
(a) review the entity’s risk management
framework at least annually to satisfy itself
that it continues to be sound and that the
entity is operating with due regard to the
risk appetite set by the board; and
(b) disclose, in relation to each reporting
period, whether such a review has taken
place.
A LISTED ENTITY SHOULD ESTABLISH A SOUND RISK MANAGEMENT FRAMEWORK AND PERIODICALLY
REVIEW THE EFFECTIVENESS OF THAT FRAMEWORK.
(5) The Committee met 5 times during the reporting period with all members as constituted at the time in
attendance.
(b) Not applicable.
(a) The Company has established policies for the oversight and management of material business risks.
The Audit and Risk Management Committee Charter of the Company is available on the Company’s
website. The responsibility for undertaking and assessing risk management and internal control
effectiveness is delegated to the Board in conjunction with the Audit and Risk Management Committee.
The Board and Audit and Risk Management Committee are required to assess risk management and
associated internal compliance and control procedures and will be responsible for ensuring the process
for managing risks is integrated within business planning and management activities. Reports on risk
management are to be provided to the Board by the Audit and Risk Management Committee at the first
Board meeting subsequent to each Committee meeting.
(b) A formal review of the Company’s risk management framework occurs at every Audit and Risk
Management Committee and Board meeting with the committee and Board reviewing and prioritising
the top risks faced by the Company as advised by the Company’s Management Risk Committee in
conjunction with the Audit and Risk Management Committee. A formal review and planning session
analysing and assessing the Company’s risk register occurred a number of times through the reporting
period between the Audit and Risk Management Committee and the management executive team.
7.3
A listed entity should disclose:
(a) if it has an internal audit function, how the
function is structured and what role it
performs; OR
(a) The Company has engaged a specialist internal audit firm to exercise the internal audit function in
conjunction with a full time CFO to ensure a level of segregation particularly in relation to processes and
procedures around such things as payment authorisations and limits of authority. The internal audit plan
is set and managed by the Audit and Risk Management Committee and the internal auditor reports
periodically to the Audit and Risk Management Committee regarding the progress against the internal
audit plan.
(b) if it does not have an internal audit
function, that fact and the processes it
employs for evaluating and continually
(b) Not applicable.
GENEX FY2023 - ANNUAL REPORT
133
PRINCIPLE 7:
RECOGNISE AND MANAGE RISK
A LISTED ENTITY SHOULD ESTABLISH A SOUND RISK MANAGEMENT FRAMEWORK AND PERIODICALLY
REVIEW THE EFFECTIVENESS OF THAT FRAMEWORK.
improving the effectiveness of its
governance, risk management and internal
control processes.
7.4
A listed entity should disclose whether it has
any material exposure to environmental or
social risks and, if it does, how it manages or
intends to manage those risks.
The Company is subject to a range of material economic and environmental risks as a developer and
operator of a number of diverse renewable energy projects in different jurisdictions within Australia and
emphasises the summary of non-exclusive risks outlined in the Company’s Replacement Prospectus
lodged with ASIC on 10 June 2015 and in the Company’s presentations released periodically to the ASX. In
relation to any potential, but as yet unknown, environmental risk, the Company has undertaken an
Environmental Evaluation Process in conjunction with the Queensland Department of Environment and
Science and is now proceeding with an agreed process with the department to surrender the current
Environmental Authority over the Kidston site in Queensland and transition the site to the contaminated
land framework under the Environmental Protection Act 1994.
PRINCIPLE 8:
REMUNERATE FAIRLY AND RESPONSIBLY
Recommendations
The board of a listed entity should:
8.1
A LISTED ENTITY SHOULD PAY DIRECTOR REMUNERATION SUFFICIENT TO ATTRACT AND RETAIN
HIGH QUALITY DIRECTORS AND DESIGN ITS EXECUTIVE REMUNERATION TO ATTRACT, RETAIN AND
MOTIVATE HIGH QUALITY SENIOR EXECUTIVES AND TO ALIGN THEIR INTERESTS WITH THE CREATION
OF VALUE FOR SECURITY HOLDERS AND WITH THE ENTITY’S VALUES AND RISK APPETITE.
(a) The Board has established a separate People and Remuneration Committee which:
(a) have a remuneration committee which:
(1) has 3 members being Dr Ralph Craven, Ms Teresa Dyson and Mr Simon Kidston. 2 members of the
committee being Dr Ralph Craven and Ms Teresa Dyson are independent.
(1) has at least three members, a majority
of whom are independent directors; and
(2) the Committee is chaired by an independent director being Dr Ralph Craven.
(2) is chaired by an independent director,
(3) A copy of the People and Remuneration Committee Charter is available on the Company’s website.
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(4) The members of the committee are Dr Ralph Craven, Ms Teresa Dyson and Mr Simon Kidston.
(5) The Committee met 3 times in the financial year with all members being present at each meeting of
the Committee they were entitled to attend.
GENEX FY2023 - ANNUAL REPORT
134
A LISTED ENTITY SHOULD PAY DIRECTOR REMUNERATION SUFFICIENT TO ATTRACT AND RETAIN
HIGH QUALITY DIRECTORS AND DESIGN ITS EXECUTIVE REMUNERATION TO ATTRACT, RETAIN AND
MOTIVATE HIGH QUALITY SENIOR EXECUTIVES AND TO ALIGN THEIR INTERESTS WITH THE CREATION
OF VALUE FOR SECURITY HOLDERS AND WITH THE ENTITY’S VALUES AND RISK APPETITE.
(b) Not applicable.
PRINCIPLE 8:
REMUNERATE FAIRLY AND RESPONSIBLY
(5) as at the end of each reporting period,
the number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; OR
(b) if it does not have a remuneration
committee, disclose that fact and the
processes it employs for setting the level
and composition of remuneration for
directors and senior executives and
ensuring that such remuneration is
appropriate and not excessive.
8.2
A listed entity should separately disclose its
policies and practices regarding the
remuneration of non-executive directors and
the remuneration of executive directors and
other senior executives.
The Committee distinguishes the structure of non-executive directors' remuneration from that of senior
executives. The Company’s Constitution and the Corporations Act 2001 also provides that the
remuneration of non-executive directors will not be more than the aggregate fixed sum determined by a
general meeting. The Board, upon recommendation from the People and Remuneration Committee, has
historically been responsible for determining the remuneration of senior executives.
8.3
A listed entity which has an equity-based
remuneration scheme should:
(a) A summary of the Company’s policy on prohibiting transactions in associated products which operate
to limit the risk of participating in unvested entitlements under any equity-based remuneration scheme
is contained within the People and Remuneration Committee Charter.
(a) have a policy on whether participants are
permitted to enter into transactions
(whether through the use of derivatives or
otherwise) which limit the economic risk of
participating in the scheme; and
(b) disclose that policy or a summary of it.
(b) Paragraph 6.2 (3) of the Company’s People and Remuneration Committee Charter states:
“…The Committee must ensure that, where applicable, any payments of equity-based remuneration are
made in accordance with the Company’s constitution and any thresholds approved by the Company’s
shareholders. Committee members must be aware at all times of the limitations of equity-based
remuneration. The terms of such schemes should clearly prohibit entering into transactions or
arrangements which limit the economic risk of participating in unvested entitlements under these
schemes. The exercise of any entitlements under these schemes should be timed to coincide with any
trading windows under the Company’s securities trading policy…”
GENEX FY2023 - ANNUAL REPORT
135
Not applicable.
9.1
ADDITIONAL RECOMMENDATIONS
A listed entity with a director who does not
speak the language in which board or security
holder meetings are held or key corporate
documents are written should disclose the
process it has in place to ensure the director
understands and can contribute to the
discussions at those meetings and
understands and can discharge their
obligations in relation to those documents.
GENEX FY2023 - ANNUAL REPORT
136
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
11. ASX ADDITIONAL INFORMATION
The following information is provided pursuant to Listing Rule 4.10 and is current as 15
August 2023 (unless otherwise stated):
Ordinary shares
1,385,177,140 fully paid ordinary shares are held by 8,050 shareholders.
Shareholder voting rights are specified in clause 10.14 of the Company's Constitution lodged
with the ASX on 6 July 2015. Ordinary shares entitle the holder to participate in dividends
and the proceeds on the winding up of the Company in proportion to the number of and
amounts paid on the shares held. On a show of hands, every member present at a meeting
in person or by proxy shall have one vote and upon a poll, each share shall have one vote.
The number of shareholders, by size of holding, in each class are:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
HOLDERS
173
2,015
1,192
3,492
1,178
8,050
TOTAL UNITS
20,833
6,730,835
9,363,761
138,462,768
1,230,598,943
1,385,177,140
PERCENTAGE
0.000%
0.490%
0.680%
9.990%
88.840%
100.000%
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
There were 153 shareholders with an unmarketable parcel of shares being a holding of less
than 3,571 shares each for a combined total of 7,153 shares based on a closing price of $0.14
per share as at 14 August, 2023, representing 0.00052% of the shares on issue on that day.
Substantial shareholders
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
SKIP EIF ENTERPRISES PTY LTD
JPGA Partners Pty Ltd
276,896,318
106,990,005
19.990%
7.724%
25/07/2022
19/05/2021
TOTAL UNITS
PERCENTAGE DATE OF NOTICE
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
GENEX FY2023 - ANNUAL REPORT
137
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Twenty largest shareholders
SKIP EIF ENTERPRISES PTY LTD
JPGA PARTNERS PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
BERNE NO 132 NOMINEES PTY LTD <718434 A/C>
BERNE NO 132 NOMINEES PTY LTD <718999 A/C>
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ASIA ECOENERGY DEVELOPMENT LIMITED
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL
SERV LTD
DOWNING DOMAIN INVESTMENTS PTY LTD
ASIA ECOENERGY DEVELOPMENT LIMITED
DANAWA (INV) PTY LTD
HORRIE PTY LTD
DANAWA (INV) PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
SPLENDID STUFF PTY LTD
MR ROBERT DOWNING & MRS CHRISTINE DOWNING
KFT CAPITAL PTY LIMITED
MRS JILLIAN MARIA NOEL TAYLOR
Total
Options on issue
14,500,000 options are held by 6 option holders.
TOTAL UNITS
PERCENTAGE
276,896,318
106,990,005
95,574,398
82,371,074
66,457,820
33,936,840
33,936,840
24,120,498
23,678,750
15,109,654
12,477,982
12,000,000
10,000,000
9,208,188
9,150,000
8,763,933
7,046,599
5,784,000
5,350,000
4,614,194
843,467,093
19.990%
7.724%
6.900%
5.947%
4.798%
2.450%
2.450%
1.741%
1.709%
1.091%
0.901%
0.866%
0.722%
0.665%
0.661%
0.633%
0.509%
0.418%
0.386%
0.333%
60.892%
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Option holders do not have the right to vote at a general meeting of shareholders until such
time as the options have been converted into ordinary shares in the Company.
The number of option holders, by size of holding, in each class are:
Exercisable at $0.34 expiring 10 September 2024
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
GENEX FY2023 - ANNUAL REPORT
HOLDERS
-
-
-
-
6
6
TOTAL UNITS
-
-
-
-
14,500,000
14,500,000
PERCENTAGE
-
-
-
-
100%
100%
138
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
Option holders with more than 20% of this class of option are:
ESCR INVESTMENTS PTY LTD
LIGUO CAPITAL PTY LIMITED
DANAWA (INV) PTY LTD
Total
4,000,000
3,000,000
3,000,000
10,000,000
27.586%
20.690%
20.690%
68,966%
TOTAL UNITS
PERCENTAGE
Performance rights on issue
9,660,586 performance rights are held by 10 performance right holders.
Performance rights do not have the right to vote at a general meeting of shareholders until
such time as the performance rights have vested and converted into ordinary shares in the
Company.
The number of performance right holders, by size of holding, in each class are:
Corporate tranche vesting on 10 May 2026
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
HOLDERS
-
-
-
-
7
7
TOTAL UNITS
-
-
-
-
7,097,494
7,097,494
PERCENTAGE
-
-
-
-
100.000%
100.000%
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
Performance right holders with more than 20% of this class of performance rights are:
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
Jacquelyn Pagano
Melanie Graham McGhie
Total
TOTAL UNITS
PERCENTAGE
2,165,993
2,165,993
4,331,986
30.518%
30.518%
61.035%
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
K2H tranche 50% vesting on 10 May 2026 and 50% vesting on the date of K2H provisional
acceptance
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
HOLDERS
-
-
-
-
3
3
TOTAL UNITS
-
-
-
-
2,563,092
2,563,092
PERCENTAGE
-
-
-
-
100.000%
100.000%
GENEX FY2023 - ANNUAL REPORT
139
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
Performance right holders with more than 20% of this class of performance rights are:
Louise Amy Ford
Angela Mary Berton
Total
Other disclosures
There are no shares or options subject to escrow.
There is no current on-market buy-back.
TOTAL UNITS
PERCENTAGE
1,299,596
902,497
2,202,093
50.704%
35.211%
85.915%
There are no issues of securities approved for the purposes of Item 7 of section 611 of the
Corporations Act 2001 which have not yet been completed.
GENEX FY2023 - ANNUAL REPORT
140
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I
CORPORATE DIRECTORY
DIRECTORS
Dr Ralph Craven
Ms Teresa Dyson
Mr Simon Kidston
Mr Ben Guo
Mr Kenichi Seshimo
COMPANY SECRETARY
Mrs Ana Gomiero-Guthrie
Independent Non-executive Chairman
Independent Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS
Suite 12.03, Level 12
35 Clarence St
Sydney NSW 2000
Telephone: +61 2 9048 8850
Email:
info@genexpower.com.au
WEBSITE
www.genexpower.com.au
ASX CODE
GNX
AUDITORS
Ernst & Young
200 George Street
Sydney NSW 2000
Telephone: +61 2 9248 4481
Website:
www.ey.com/au/en/home
SHARE REGISTRY
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
Telephone: +61 2 9290 9600
+61 2 9279 0664
Facsimile:
www.boardroomlimited.com.au
Website:
GENEX FY2023 - ANNUAL REPORT
141
’
R
E
T
T
E
L
S
N
A
M
R
A
H
C
I
I
F
O
W
E
V
E
R
S
O
E
C
’
I
S
N
O
T
A
R
E
P
O
G
S
E
T
R
O
P
E
R
’
S
R
O
T
C
E
R
D
I
E
C
N
E
D
N
E
P
E
D
N
I
I
N
O
T
A
R
A
L
C
E
D
’
S
R
O
T
D
U
A
I
I
N
O
T
A
R
E
N
U
M
E
R
T
R
O
P
E
R
I
D
E
T
A
D
L
O
S
N
O
C
I
L
A
C
N
A
N
F
I
S
T
N
E
M
E
T
A
T
S
’
S
R
O
T
C
E
R
D
I
I
N
O
T
A
R
A
L
C
E
D
T
N
E
D
N
E
P
E
D
N
I
T
R
O
P
E
R
S
R
O
T
D
U
A
I
’
E
T
A
R
O
P
R
O
C
E
C
N
A
N
R
E
V
O
G
T
N
E
M
E
T
A
T
S
I
I
L
A
N
O
T
D
D
A
X
S
A
I
N
O
T
A
M
R
O
F
N
I