Annual Report 2024
DELIVERING AN
INNOVATIVE FUTURE
CONTENTS
2
Our Highlights
4
What We Do
6
Our Markets:
The Industries
We Serve
8
Chairperson
and Managing
Director Joint
Report
12
Sustainability Report
46
Board of Directors and
Company Secretary
48
Directors Report
57
Remuneration Report
77
Auditor’s Independence
Declaration
78
Financial Report
141
Directors’ Declaration
142
Independent Auditor’s
Report
147
ASX Shareholder
Information
149
Corporate Directory
43 CANADA
146 UNITED STATES
72 LATIN AMERICA
REGIONS AND
NUMBER OF STAFF
Alin Mihaita Tanasa, Denmark
Software Developer
Annual Report 2024
Hansen Technologies Ltd
396 INDIA
463 EUROPE
249 NORDICS
161 UNITED KINGDOM
169 AUSTRALIA
46 NEW ZEALAND
At Hansen, we relentlessly push boundaries, keeping our products and
offerings agile, innovative, and laser-focused on our customers’ needs
and the ever-evolving sectors they thrive in.
196 VIETNAM
2 Indonesia
1 JAPAN
11 SOUTH AFRICA
1
Annual Report 2024
Hansen Technologies Ltd
OUR HIGHLIGHTS
$353.1m
Up 13.2%
Up 8.2% excluding Data
Centre & powercloud
OPERATING REVENUE
$148.9m
Up 1.2%
APAC Up 16.5%
COMMUNICATIONS & MEDIA
REVENUE
$201.6m
Up 26.2%
Up 14.7% excluding
powercloud
ENERGY & UTILITIES
REVENUE
$87.1m
Up 11.1%
UNDERLYING CASH EBITDA
(EXCLUDING POWERCLOUD)
‘Major Player’ in
IDC MarketScape
Named in the ‘Major Players’
category in IDC MarketScape
— Worldwide CIS and Billing
Solutions for Utilities 2024
Vendor Assessment.
~400,000 hours of
innovation annually
We are continually evolving
our products to exceed our
customers expectations.
We capitalise only a small portion
of our overall R&D. In addition to
these hours, we deliver significant
billed innovation activities across
many of our products.
Sustainably-focused
operations
Implemented global Sustainability
Strategy – a blueprint for
sustainable value creation that
connects the business strategy
to sustainability issues.
Underlying Cash EBITDA
is Underlying EBITDA less
capitalised development costs
2
Annual Report 2024
Hansen Technologies Ltd
Customer 1
Customer 2
Customer 3
Customer 4
Customer 5
Customer 6
Customer 7
Customer 8
Customer 9
Customer 10
Other Customers
8%
6%
64%
5%
3%
3%
2%2%2%2%3%
CUSTOMER DIVERSITY
0.3x
Sufficient capital for further
acquisition opportunities
LEVERAGE RATIO
3
Annual Report 2024
Hansen Technologies Ltd
WHAT WE DO
About Hansen
Hansen (ASX:HSN) is a global provider
of software and services for the energy
and utilities, and communications
and media sectors.
Our Hansen Suite is made up of
industry-specific modular solutions
delivered as SaaS, on-premise or in the
cloud. These software products are
underpinned by the deep knowledge
of our industry experts located across
every continent except Antarctica.
Our focus is on enabling our customers
to more easily innovate and sell new
services and market offerings, comply
with changing market regulation, and
power new business models in areas
such as emerging sustainable energy
supply, IoT, and new next-generation
connected services.
While we provide a critical bridge to
the future, a considerable part of the
Hansen value is to provide the rock-
solid foundation that our customers
rely on every day. For example,
providing current services, charging
and billing for them, and engaging in
the necessary customer interactions
required to maintain their business
and critical services they deliver – all
supported through the Hansen Suite
of software and services, and the just
under 2,000 Hansen community.
4
Annual Report 2024
Hansen Technologies Ltd
5
Annual Report 2024
Hansen Technologies Ltd
OUR MARKETS: THE INDUSTRIES WE SERVE
At Hansen we play a pivotal role for our customers. We are an essential ingredient in their
commercial business models, providing the ability to create and deliver essential services.
THE COMMUNICATIONS
& MEDIA SECTOR
A$148.9m
The Communications & Media sector is a dynamic sector
and one that continues to undergo unprecedented digital,
business and technology transformation. As the world
embraces 5G, IoT, and AI, consumers, both individual and
corporate, increasingly rely on communications and media
companies for a diverse array of products and services that
extend far beyond basic connectivity.
As a leader in the Opportunity-to-Cashflow landscape,
we are engaging in numerous dynamic and diverse
projects, collaborating with many of the industry’s leading
communications and media companies. Our focus is helping
them quickly launch new digital services and establish new
lines of business, including marketplace solutions.
Notably we are working with one of the largest communications
companies in Europe to develop a comprehensive
wholesale solution.
In North America, we successfully deployed our products
to support DISH’s 5G market strategy, based on one of
the industry’s first Open RAN 5G Networks. Alongside this
core 5G program, we are also working on a number of other
transformation programs for different parts of DISH’s retail
consumer and business wholesale markets.
Our extensive multi-year transformation initiative with Telefónica
Germany has achieved significant milestones over the past
12 months.
Additionally, numerous clients have transitioned or are in the
process of transitioning to our cloud-native SaaS products,
highlighting their trust in our technological expertise. Others
have turned to us for our ability to deliver converged billing
across different business entities.
Furthermore, our team continues to pioneer the next phase of
industry evolution by collaborating with organisations like TM
Forum to lead and shape new standards in telecommunications,
particularly around Open Digital Architecture.
REVENUE
6
Annual Report 2024
Hansen Technologies Ltd
6
THE ENERGY
& UTILITIES SECTOR
Hansen’s strategic focus for players in the Energy & Utilities
sector is to help them transition from commodity-based
services to value-added solutions, ultimately delivering an
exceptional customer experience. Our purpose-built software
empowers clients by managing critical data essential for
their commercial operations, aligning with our vision to
enhance customer interactions.
The Energy & Utilities sector is undergoing a significant
transformation, driven by innovations behind the meter, complex
networks, increased distributed generation, and diverse storage
assets. Utility companies are leveraging automation, analytics,
and AI to optimise energy generation, storage, and trading, all
while striving to deliver superior customer experiences amidst
global cost-of-living challenges.
In FY24, Hansen advanced its energy and utility modules,
facilitating rapid transitions for our customers. We expanded
our market presence with the acquisition of powercloud in
Europe, targeting the German and DACH (Germany, Austria and
Switzerland) regions. Our global products meet regional and local
regulations out-of-the-box, ensuring compliance and reliability.
A few notable highlights from FY24 in Asia Pacific include
nearing completion of a major transformation project for Energy
Queensland and launching a significant Commercial and Industrial
project for Aurora Energy. In the Nordic region, we migrated Fortum
companies to a unified Hansen platform and delivered multiple
projects for Hansen Trade, Energy Data Management, and Storage
Optimisation, including collaborations with Stockholm Exergi,
Skellefteå Kraft, and Vattenfall. In North America, we supported
community solar advancements, adding Cenergy Power to our
portfolio. We fully implemented Hansen EDI for North America
across Exelon, processing up to 90 million EDI transactions
annually and managing $80 billion in financial transactions.
Hansen’s evolution and transition to SaaS applications for utilities
addresses customers’ needs for better availability, dependability,
robustness, and security, along with the latest features and
functionality. Our expertise in ecosystem integration is helping
customers accelerate productisation and time-to-market,
streamline processes and enhance customer engagement.
A$201.6m
REVENUE
7
Annual Report 2024
Hansen Technologies Ltd
Annual Report 2024
7
CHAIRPERSON AND MANAGING DIRECTOR JOINT REPORT
David Trude
Chairperson
Andrew Hansen
Global CEO and
Managing Director
Dear Shareholders and Stakeholders,
We are pleased to present the Annual Report for
Hansen Technologies Limited, for the fiscal year ended
30 June 2024 (FY24).
Across FY24, the base Hansen business (excluding the recent
powercloud acquisition) delivered strong revenue growth,
stable Underlying EBITDA margins and continued to generate
solid operating and free cash flows.
The powercloud acquisition requires further investment and
whilst there remain challenges to its transition into a profitable
business within the Energy & Utilities vertical, integration efforts
are underway.
Our focus on innovation and growth is helping ensure
Hansen continues to deliver the best possible value for all
our stakeholders. The industry sectors we support are both
in exciting digital transition phases, and as a group we
are uniquely positioned to help accelerate our customers’
transition and transformation.
Our people are critical to Hansen delivering on our mission.
Their hard work and dedication is reflected in what
has been another successful year of product development
and innovation for our customers.
Delivering Innovative Solutions
to Sectors in Transition
At Hansen, we support two industry sectors – Energy &
Utilities and Communications & Media. Both these sectors
are incredibly dynamic, navigating a myriad of change from
societal expectations to regulatory compliance demands.
To ensure our software products and service offerings remain
what will be best to support our customers into the future, we
are laser focused on doing our part to anticipate future needs.
Over the past year, we have invested across the board in our
products, embracing both emerging and tried and tested tools
and technologies.
Agility is the key. We are proud that some of our technology
leads are not just working with our people to advance our
products but are also working at an industry level to help
establish new industry standards. For example, with TM Forum
as Open Digital Architecture becomes an industry standard,
our people are leading several workstreams and are actively
involved in working groups.
At Hansen, innovation is at the core of what we do. We dedicate
more than 400,000 hours annually to innovation (or R&D). Within
FY24, the areas of investment have spanned community solar,
customer experience, enabling for renewable future with behind
the meter innovation, innovation around virtual power plants,
AI optimised trading of energy, cyber security and helping our
communications customers establish marketplace solutions
and full turnkey digital services.
At Hansen, we constantly assess and embrace emerging technologies.
Equally, we focus on forging deep relationships with our customers
and partners to ensure we understand their dynamic worlds and the
challenges they navigate.
This, in turn, enables our team to agilely direct their innovative efforts to
ensure our products help our customers power through their transitions
and transformations. And we are always assessing how acquisitions
might support us to deliver to our customers and keep propelling our
business forward to achieve our growth aspirations.
It’s an exciting time to be a part of Hansen. The challenges for our
customers and the sectors they operate in are real. And we are proud
that technology, specifically Hansen software and services, is playing
a vital role to advance our customers’ businesses.
8
Annual Report 2024
Hansen Technologies Ltd
A$59.1m
7.3%
30%
FY24 Operating Cash Flow
Operating Revenue
Growth excluding
powercloud
Underlying EBITDA Margin
excluding powercloud
Recurring and Predictable Revenue
FY24 Revenue by Region
Trusted Partner, Expanded Relationships
At Hansen, forging meaningful and long-lasting relationships
with our customers is very much in our DNA. In fact, we still work
with customers that first came to us close to 40 years ago!
Why? We aim to partner – that is, we work alongside our
customers to genuinely understand their businesses, help bring
new thinking into understanding and navigating the challenges
they face or will face, and together we innovate for the future.
FY24 has been another positive year where new customers
have started on a journey benefiting from Hansen products
and many current customers have progressed and completed
projects. Equally, a number of customers have renewed their
contracts, and, in many cases, in renewing have expanded their
partnership with us. Numerous clients are transitioning to our
cloud-native SaaS products, demonstrating their trust in our
technological expertise and converged billing solutions.
In the Communication & Media sector, our extensive
transformation with Telefónica Germany has achieved
significant milestones over the past year. In North America,
our products support DISH’s Open RAN 5G network and
other transformation programs. Additionally, we are helping
shape new telecommunications standards with TM Forum,
particularly around Open Digital Architecture.
In the Energy & Utilities sector, we are nearing completion of
a major project for Energy Queensland and are launching a
Commercial and Industrial project for Aurora Energy in Asia
Pacific. In the Nordic region, we migrated Fortum companies
to a unified Hansen platform and delivered projects for Hansen
Trade, Energy Data Management, and Storage Optimisation
with partners like Stockholm Exergi, Skellefteå Kraft, and
Vattenfall. In North America, we supported community solar
advancements, adding Cenergy Power to our portfolio.
Our team supporting Exelon, North America’s largest energy
company, is now processing up to 90 million EDI and $80 billion
financial transactions each year.
We are proud to report a seven-year renewal with a leading
provider of electricity and gas to the United Kingdom and the
Republic of Ireland. This longstanding customer of Hansen
since 2005 is upgrading to Hansen’s cloud-enabled, event-
driven CIS platform. This renewal represents a significant
milestone, highlighting the strategic investments we have made
in our products and underscores our commitment to supporting
a valued customer through their digital transformation journey.
Expanded Geography, New Offering
Our acquisition of powercloud, which focuses on serving
Energy & Utilities customers with a billing and customer
management solution across the DACH region (Germany,
Austria and Switzerland), has opened up new potential for
Hansen in this strategically important part of the world.
We are excited by the prospects for growth in the German
energy sector. We expect market dynamics to encourage many
energy retailers in Germany to make an investment decision
on their billing systems in the coming years. With over 1,200
retailers and the push towards Distributer Energy Resources,
Renewables and Smart Meters, the market needs new,
modern, highly flexible providers.
11.1%
Underlying Cash EBTDA
Growth excluding
powercloud
41%
61%
18%
21%
59%
Licence, Support
and Maintenance
AMERICAS
APAC
Application
Fees
EMEA
Excluding Data Centre
9
Annual Report 2024
Hansen Technologies Ltd
CHAIRPERSON AND MANAGING DIRECTOR JOINT REPORT CONTINUED
The German Energy market provides significant opportunities
for growth. Our acquisition of powercloud provides a platform
for Hansen to expand further into this attractive market.
We acquired the business as a turnaround story, and we
are continuing to invest as we integrate the business and
implement Hansen’s software development and project
management disciplines.
As a business, we are very well positioned to aggregate more
and larger businesses. As we explore acquisition opportunities,
we are predominantly targeting businesses within the verticals
we operate in, with a focus on companies that are driving
profitable innovation and growth. Hansen is also considering
a third vertical that complements or leverages our existing
capabilities. Our investment strategy for a potential third vertical
is to identify companies that are driving profitable innovation
and growth, are mission critical to the companies they serve
and are not easily replicated or replaced.
Investing in the Future: Our People
As a global business, we are positively astounded at how many
milestone anniversaries we celebrate. There would not be many
months when we don’t have people marking five, 10, 15, or 20
years and regularly we are speaking to people who have made
their life’s career with us as they reach 25, 30 and beyond years.
This is testament to the rewarding work that we do and the
investments we make to fuel their passions. We are committed
to providing opportunities for our people to grow, develop
and move into new areas and bring together our diverse and
rich tapestry of cultures, backgrounds and beliefs into a safe,
respectful and inspiring environment.
Through FY24, our global business connected around initiatives
from improving physical and mental health, to appreciating each
other, sharing our talents from photography to elite sports and
giving back to our communities – locally and globally through
our Acts of Impact initiative.
Embedding Sustainability into our Core
At Hansen, we’re not just about building innovative software
and services; we’re also about creating a positive impact within
the Energy & Utilities and Communications & Media sectors
and beyond. In line with our commitments made during
FY23, we have brought this together in our global
Sustainability Strategy.
Preparations are underway for mandatory sustainability
reporting and we are proud to highlight that we have exceeded
our roadmap expectations with the development of our initial
Climate Report. We have developed a report which provides
information about Hansen’s approach to assessing and
managing its climate-related risks and opportunities.
We are also delighted to share that for the third year running,
our Australian operation has been certified as Carbon Neutral
by Climate Active and that since FY21 our emissions for this
part of Hansen has reduced by 17%.
More details can be found in our Sustainability Report
on page 12.
A Word on the Financials
The Group has delivered strong revenue growth and Underlying
EBITDA margins that were in line with guidance.
Reflecting the Group’s strong cash generation, Underlying Cash
EBITDA excluding powercloud increased 11.1% from FY23 to
$87.1m. The organic revenue growth of the underlying Hansen
business excluding powercloud has increased by 7.3% and
our latest acquisition powercloud has delivered an additional
$18.4m in operating revenue.
A$ Million
FY24
FY23
Variance
(%)
Including powercloud
Operating revenue
353.1
311.8
13.2%
Underlying EBITDA(1), (2), (3)
92.4
99.5
(7.1%)
Underlying Cash
EBITDA(1), (2), (3), (4)
76.9
78.4
(1.9%)
Excluding powercloud
Operating revenue
334.7
311.8
7.3%
Underlying EBITDA(1), (2), (3)
99.7
99.5
0.2%
Underlying Cash
EBITDA(1), (2), (3), (4)
87.1
78.4
11.1%
(1) The Directors believe the information additional to IFRS measures included
in the report is relevant and useful in measuring the financial performance
of the Group.
(2) EBITDA is a non-IFRS term, defined as earnings before interest, tax,
depreciation and amortisation, and excluding net foreign exchange
gains (losses).
(3) Underlying EBITDA, excludes separately disclosed items, which represent
the one-off costs during the period. Further details of the separately
disclosed items are outlined in Note 4 to the Financial Report.
(4) Underlying Cash EBITDA is Underlying EBITDA less capitalised
development costs.
10
Annual Report 2024
Hansen Technologies Ltd
Our revenue is up 13.2% since FY23. Excluding licences,
our recurring and predictable revenue is up 6.9% from FY23
and up 7.7% since FY19 (CAGR) excluding powercloud and
Data Centre. Our business remains very well diversified across
verticals, geographies and our customer base with no one
customer making up more than 8% of our total global FY24
revenue. This diversity, and the industries we serve, ensure that
we remain resilient and create opportunities to leverage our
global footprint for further growth.
At a Group level $59.1m of Operating Cash flows was
generated and reflecting the investment required to acquire and
fund powercloud, the Free Cash Flow was a negative $5.7m.
Hansen borrowed an additional $55.3m to fund the acquisition
of powercloud and has already paid down $12.0m of this
borrowing. At 30 June 2024, the Group’s total borrowings were
$70.2m and its net debt position was $24.5m. Hansen’s overall
leverage ratio remains very low at 0.3x.
Looking Ahead: Leadership
and Structural Changes
With the dynamic markets we operate in, the Board and senior
leadership are always looking at how Hansen can perform
better for our customers, our people and our shareholders.
The growth we have experienced over the past five years
has paved the way for a structure that delivers an integrated
model for each of our two verticals.
From July 1, 2024, Hansen will operate with two divisions,
each focusing on an industry vertical. Scott Weir will lead our
Communications & Media focus, and David Castree will lead
Energy & Utilities. Both these senior executives are long-time
Hansen leaders.
Rejoining the business as Chief Strategy Officer is Niv Fernando.
He will be responsible for managing the company’s growth
strategy including our mergers and acquisitions.
Andrew Hansen will resume the position of Global CEO
alongside the role of Managing Director.
We thank Graeme Taylor for his leadership not just over the past
12 months as CEO, but for his strategic leadership throughout
the past 11 years in various executive roles.
The Board and leadership team are invigorated by the road
ahead and look forward to sharing updates as we celebrate
key milestones and achievements.
David Trude
Chairperson
Andrew Hansen
Global CEO and Managing Director
334.7
311.8
296.5
286.7
301.4
231.3
18.4
21.0
FY24^
FY23
FY22
FY21*
FY20
FY19
OPERATING REVENUE ($m)
87.1
78.4
84.7
87.1
71.7
52.5
21.0
FY24^
FY23
FY22
FY21*
FY20
FY19
(10.2)
UNDERLYING CASH EBITDA ($m)
* Includes Telefónica
^ Includes powercloud
Megan Rosier,
Australia
Director, Corporate
Communications and Marketing
11
Annual Report 2024
Hansen Technologies Ltd
Global CEO and Managing Director’s
Message
I am pleased to present Hansen’s Sustainability Report for
FY24, highlighting our key achievements and commitments
to sustainability, environmental responsibility, diversity, and
governance.
In FY24, we developed and began implementing a global
Sustainability Strategy based on the 20 material sustainability
topics we identified during FY23. Our Sustainability Strategy is
aligned with the ten principles of the UN Global Compact and
key UN Sustainable Development Goals. It aims to effectively
manage our sustainability-related risks and create social,
environmental, and economic value through our products,
services, and operations.
I’m proud to state that we have exceeded the expectations
of our sustainability roadmap and delivered our inaugural
Climate Report during FY24. The report is structured in line
with the Task Force on Climate-Related Financial Disclosures
(TCFD) framework and sets the foundation for Hansen in its
preparation for Australia’s forthcoming mandatory climate-
related financial disclosure standards.
As a global company, operating in many diverse markets,
we are taking a phased approach on our journey to
become net-zero. Our initial focus has been understanding
the impacts of our Australian operations and ensuring we
have a robust program to reduce our emissions, before
expanding globally.
I am delighted to share that for the third year in a row
our Australian operations have been certified as carbon
neutral by Climate Active. More importantly, our Australian
emissions are declining even as our business is growing.
As part of our Sustainability Roadmap, we will be setting
environmental targets and adopting responsible practices
for a transition to a net-zero, resilient economy.
At Hansen, we’re not just about building market leading innovative software and services;
we’re about creating a positive impact within the Energy & Utilities and Communications
& Media sectors and beyond. Yet we know that no one individual or organisation can impact
our planet in the way it needs – it is a collaborative approach that businesses must make to
facilitate the transformative change necessary to limit the global temperature rise to 1.5°C.
Peter Beamsley
Head of Investor Relations and Sustainability
ACTING ON CLIMATE CHANGE
AND THE ENVIRONMENT
SUSTAINABILITY REPORT
12
Annual Report 2024
Hansen Technologies Ltd
UPLIFTING OUR PEOPLE, FUTURE
WORKFORCE & COMMUNITIES
OPERATING OUR BUSINESS ETHICALLY
& RESPONSIBLY
Hansen is incredibly fortunate to have such a diverse
workforce – from the cultures and languages of our people
to their ages and genders and everything in between.
This is something that we have long valued and that
we recognise as an asset in how we work and how we
responsibly model to the wider business community.
Yet it is a responsibility that we don’t take lightly. We are
always looking at what we can do to further prioritise our
people and their physical and mental well-being, to ensure
they feel included, respected and above all safe.
We are committed to treating every individual with dignity
and respect, ensuring human rights are central to the
workplace culture. Aligning with our efforts to create a
sustainable and diverse talent pipeline, we commit to trying
to maintain above-industry levels of female representation.
Our recent recruitment of a new female board member also
increases female representation on the Board.
Since our inception, we have always sought to develop
strong relationships with the communities in which we
operate. Over the past few years, our people have
embraced our Acts of Impact initiative among others to
impact in small and not so small ways. Our future actions
are focused on strengthening these values within every
layer of our operations and supply chains, helping ensure
that our dealings are not just fair, but exemplary.
In a world where trust is currency, we always seek to
operate with the highest levels of integrity and transparency.
We are passionate about upholding the highest standards
of data privacy and are continuously innovating and
investing in robust cyber security measures.
We adhere to stringent anti-corruption policies and
emphasise comprehensive training programs across all
these fundamental business areas. Our recently enhanced
Supplier Code of Conduct and Code of Conduct help to
ensure sustainable ethical operations. This goes beyond
just compliance; it’s about fostering a culture where human
rights are front and centre. Looking ahead, we’re exploring
new ways to empower the communities we operate in
and make sure our operations leave a positive mark on
everyone involved.
I hope you enjoy reviewing our FY24 Sustainability Report.
You have my, the leadership team, and our Board’s
commitment that we will continue to evolve our strategies
and practices to address emerging challenges and
opportunities. This report lays the framework for our
ongoing efforts and establishes our pathway for upcoming
mandatory sustainability reporting including the Australian
Sustainability Standards and Corporate Sustainability
Reporting Directive (Europe).
With our focus on two sectors that are in essence the lifeblood of society, we are proud of our
small role in helping support our customers in their transition to net-zero through innovative
solutions while seeking ways to reducing our own environmental impacts and working towards
becoming a carbon neutral company.
13
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
This report provides an overview of Hansen’s global
sustainability performance during FY24. Our reporting
considers and promotes the ten principles of the United
Nations Global Compact, the United Nations Sustainable
Development Goals (SDGs) and the Task Force on Climate-
Related Financial Disclosures (TCFD). It has been prepared
considering the emerging standards and guidelines issued
by the Global Reporting Initiative (GRI), the Sustainability
Accounting Standards Board (SASB), the Corporate
Sustainability Reporting Directive (CSRD) and the
Australian Sustainability Reporting Standards (ASRS).
This report contains information for Hansen and its controlled
entities as at 30 June 2024 and, for businesses that were
part of Hansen during only part of the reporting period unless
otherwise stated.
Our Sustainability Report is broadly structured around our
Sustainability Strategy, the 20 material sustainability topics
identified during FY23 and our Sustainability Roadmap which
supports and guides Hansen to achieve greater value for our
stakeholders and the communities we operate in.
Andrew Hansen
Global CEO and Managing Director
Hansen’s Sustainability Roadmap
Supplier Sustainability
Assessment of a select group
of suppliers
Set Sustainability Targets and
KPIs for select metrics, and track
and report on completion rates
Introduce and embed the
Sustainability Strategy across
the organisation
Begin calculation of scope 1, 2
and 3 emissions for Hansen’s
global operations
Recertify for Climate Active
Conduct climate scenario
analysis on highest priority
risks and opportunities
IFRS/ASRS readiness
assessment
Conduct a progress assessment
to track the extent to which
the Sustainability Strategy is
integrated across the organisation
Finalise and launch Diversity,
Equity & Inclusion Strategy
Continue Supplier Sustainability
assessment
Define scope 1, 2 and 3
emissions baseline for Hansen’s
global operations
Begin forecast of future emissions
trajectory that incorporates
scope 3 emissions of the
full value chain
Develop an emissions reduction
strategy and submit targets
to SBTi
Expand Sustainability Metrics
Targets and KPIs for select
metrics, and continue to track
and report on completion rates
Materiality assessment refresh
with global stakeholder
engagement
Develop a whole-of-business
Sustainability Strategy
Develop ESG metrics and identify
relevant ESG data points to begin
tracking
Begin development of a Diversity,
Equity & Inclusion Strategy
Formalise a waste management
plan that builds on current waste
management efforts
Review and update selected
policies in line with the
Sustainability Strategy
Launch Supplier Code of Conduct
Calculate detailed scope 3
emissions for Hansen’s
Australian operations
Recertify for Climate Active
Conduct global sustainability
risk and opportunity assessment
to refine the Sustainability Strategy
Publish Hansen’s first Climate
Report aligned with TCFD,
with a view to further evolve this
in future years to align with ASRS
FY24
COMPLETED
FY25
FY26
AND BEYOND
14
Annual Report 2024
Hansen Technologies Ltd
ACROSS FY24 HANSEN HAS MADE SIGNIFICANT PROGRESS ON ITS SUSTAINABILITY ROADMAP
SUSTAINABILITY
STRATEGY
We have developed our
global Sustainability Strategy,
informed by our material
ESG topics. This connects
our business strategy to
sustainability issues and
articulates our commitment
to generating value through
our products, services, and
operations, and seeks to
demonstrate our alignment
with the UN SDGs and
Global Compact principles.
GLOBAL ENVIRONMENTAL
& CLIMATE CHANGE
POLICY
Implementation of our
Environmental and Climate
Change Policy highlights our
commitment to managing
our operations and activities
in a manner that complies
with minimum environmental
standards and describes
how we will continue to
improve our environmental
performance and mitigate
the effects of climate change.
DISCLOSURE
READINESS
Hansen has made progress
to prepare for upcoming
sustainability reporting by
developing our inaugural
Climate Report, the first
output of these activities.
Understanding our climate
impacts and our resilience
to them helps inform our long-
term corporate strategy
and risk management.
SUPPLIER CODE
OF CONDUCT
In FY24 we formally
launched our Supplier Code
of Conduct which sets out the
minimum standards
that Hansen requires our
suppliers to meet in relation
to labour and human
rights — including modern
slavery laws, business
integrity, health and safety,
environment, data privacy,
and cyber security.
DIVERSITY, EQUITY
& INCLUSION
At Hansen a diverse,
equitable and inclusive
workforce is at the heart
of our corporate values.
In FY24, we took the
significant step of
benchmarking our
unadjusted average and
median gender pay gap.
HUMAN RIGHTS POLICY
AND CODE OF CONDUCT
In FY24 we significantly
enhanced our Human
Rights Policy which sets
the minimum standards
for all Hansen employees,
contractors, suppliers,
and business partners,
emphasising our
collective responsibility.
Our Code of Conduct
serves as the cornerstone
of our commitment to
ethical conduct.
GLOBAL WASTE AND
E-WASTE MANAGEMENT
POLICY
As a leading global
technology company,
we recognise the impact
waste and electronic waste
(e-waste) can have on the
environment and human
health. Our policy outlines
Hansen’s commitment to
minimising waste generation,
promoting responsible
disposal, and contributing
to a circular economy.
CARBON NEUTRAL
Our Australian operations
were certified as carbon
neutral by Climate Active
for the third year in a row
and delivered a 17% Green
House Gas Emissions (GHG)
reduction since FY21. In line
with our roadmap, we have
begun to assess the base
line of several other regions
alongside calculating detailed
scope 3 emissions for
our Australian operations.
FY24 Roadmap Key Progress
15
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Sustainability Strategy
In line with our roadmap and commitments made in FY23,
during FY24 Hansen developed and began implementing our
Sustainability Strategy. This has been informed by our 20 material
sustainability topics established during FY23 and brings together
existing Hansen initiatives, while also incorporating the strategic
objectives of our business model and products.
It seeks to articulate how we manage climate risk and create
social, environmental and economic (ESG) value for our
stakeholders through our products, services and operations.
The strategy connects the business strategy to sustainability
issues. It is our way of communicating our commitment across
all three pillars of ESG to our stakeholders and seeks to align
our efforts with the ten principles of the UN Global Compact
and several UN Sustainable Development Goals (SDGs).
Why Sustainability Matters to Hansen
Our commitment to sustainability is grounded in the
understanding that today’s business landscape goes beyond
profitability. It’s about helping Hansen effectively manage our
sustainability risks and creating a positive impact on the world
around us, fostering a resilient and inclusive community, and
nurturing our most valuable asset: our people.
It is through our Sustainability Strategy that we strive to make
a positive difference, not only within our organisation but also
in the broader communities we operate in.
OUR COMMITMENT TO SUSTAINABILITY
IS GROUNDED IN THE UNDERSTANDING
THAT TODAY’S BUSINESS LANDSCAPE
GOES BEYOND PROFITABILITY. IT’S ABOUT
HELPING HANSEN EFFECTIVELY MANAGE
OUR SUSTAINABILITY RISKS AND CREATING
A POSITIVE IMPACT ON THE WORLD AROUND
US, FOSTERING A RESILIENT AND INCLUSIVE
COMMUNITY, AND NURTURING OUR MOST
VALUABLE ASSET: OUR PEOPLE.
Adam Partington, USA
Infrastructure Solution Architect
16
Annual Report 2024
Hansen Technologies Ltd
Strategies
Supporting our customers in their transition
to net-zero through innovative renewable
energy solutions
Reducing our own environmental impacts
and working towards becoming a carbon
neutral company
Strategies
Creating a diverse, equitable and inclusive
workforce and prioritising employee wellbeing
Cultivating a sustainable talent pipeline
by fostering diversity in STEM
Developing strong relationships with
the communities in which we operate
to support social, economic and
environmental opportunities
Strategies
Upholding the highest standards of
data privacy and ensuring continuous
investment in robust cyber security
measures
Conducting business ethically and
with integrity, including anti-corruption
and bribery
Promoting responsible practices across
the supply chain, including the prohibition
of modern slavery
ENVIRONMENT:
ACTING ON CLIMATE CHANGE
AND THE ENVIRONMENT
SOCIAL:
UPLIFTING OUR PEOPLE, FUTURE
WORKFORCE & COMMUNITIES
Our Sustainability Strategy consists of three pillars
Our Sustainability Strategy aligns with and guides our actions around our material
topics and key UN SDG’s
GOVERNANCE:
OPERATING OUR BUSINESS
ETHICALLY & RESPONSIBLY
Material Topics
Renewable energy development
& transition
Service adaptability & reliability
GHG emissions
Innovative and sustainable solutions
(incl. digital accessibility)
Climate risk & resilience
Circularity & E-Waste
UN SDG Alignment
UN SDG Alignment
UN SDG Alignment
Material Topics
Diversity, equity & inclusion
Employee experience & wellbeing
Future career pathways
Community development
Health & safety
Financial wellbeing
Human rights
Material Topics
Data privacy & cyber security
Business ethics
Anti-competitive behaviour
Responsible & ethical procurement
Modern slavery
Sustainability Enablers
Leadership, governance & transparency
Regulatory compliance
Sustainability Enablers
Maintaining strong governance and security practices to ensure transparency, accountability and ethical conduct
Ongoing regulatory compliance, including transparency in reporting
Active risk management
Dark material topics have been identified as strategically important.
17
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Climate Report
We are proud to highlight that during FY24 we have exceeded
our roadmap expectations and developed our inaugural Climate
Report. We undertook a program of work to develop the report
which provides information about Hansen’s approach to
assessing and managing its climate-related risks and
opportunities and is structured in line with the TCFD framework.
It sets the foundation for Hansen in its preparation for Australia’s
forthcoming mandatory climate-related financial disclosure
standards. Below is a summary of this report.
Climate Risk Governance
Hansen acknowledges that strong governance foundations are
essential to mitigate environmental and climate-related risks.
During FY24 we developed and implemented our inaugural
global Environmental and Climate Change Policy and our
Waste and E-Waste Management Policy. With these policies
Hansen aims to minimise its impact on the environment.
These policies are managed by the sustainability cross-
functional working group and broadly cover the following
key objectives in line with Hansen’s Sustainability Strategy:
• Renewable Energy Development & Transition
• Greenhouse Gas Emissions
• Climate Risk & Resilience
• Nature Resource Management
• Waste and E-waste Reduction
• Promotion of Responsible Disposal
• Contribution to the Circular Economy
Our approach to climate risk management is also supported
by other policies and charters available on our website,
including our Code of Conduct, Corporate Governance
Statement, Enterprise Risk Management Framework,
The Board Charter, Audit & Risk Charter, Human Rights
Policy, and Supplier Code of Conduct.
Climate Report
The assessment of our environmental risks and opportunities improves
our ability to adapt to climate-related hazards and natural disasters in all
the countries we operate in.
Hansen Technologies Limited Board
Audit and Risk Committee
Chief Financial Officer
Head of Investor Relations and Sustainability
Sustainability and ESG Team
Cross Functional Working Group
Finance
Legal
Strategy
Communications
IT & IT Security
HR
Procurement
Risk
Board
Sustainability & Climate
Risk Governance
Framework
18
Annual Report 2024
Hansen Technologies Ltd
Led by the Head of Investor Relations and Sustainability,
Hansen’s Sustainability and ESG team reports to the Chief
Financial Officer. Day-to-day management of sustainability-
related risks and opportunities is coordinated by the Sustainability
and ESG Team. The Sustainability and ESG team coordinates
the Cross Functional Working Group and its sub working
groups. The team regularly presents to the Board and the Audit
and Risk Committee (ARC) on sustainability and climate-related
financial disclosures and the impact of our climate and
sustainability-related strategy. Our Head of Investor Relations
and Sustainability acts as the climate sponsor and the key
communicator to the ARC on climate-related issues supported
by the wider Sustainability Cross Functional Working Group.
Hansen’s ARC, a subcommittee of Hansen’s Board,
is responsible for overseeing Hansen’s Sustainability
responsibilities. The ARC agenda includes bi-annual reviews
on all sustainability matters and climate-related risks included
in Hansen’s Enterprise Risk Register. Climate change will
receive continued assessment by the ARC.
All members of our Board Directors must collectively possess
the appropriate skills, experience and independence to effectively
discharge the Board’s responsibilities. In FY24, our Board
Skills Matrix was updated to include sustainability and climate
risk-related knowledge. Key members of our Board are required
to have knowledge of climate-related risks and opportunities
and sustainability regulations and principles to help ensure
responsible and sustainable operations. Half of our board were
assessed as having strong or very strong skills in Corporate
Governance and ESG. Our newest Director Rebecca Wilson,
is now also a member of our sustainability Cross Functional
Working Group, helping to add an additional layer of
governance and oversight over our activities.
KEY MEMBERS OF OUR BOARD ARE REQUIRED TO HAVE
KNOWLEDGE OF CLIMATE-RELATED RISKS AND OPPORTUNITIES
AND SUSTAINABILITY REGULATIONS AND PRINCIPLES TO HELP
ENSURE RESPONSIBLE AND SUSTAINABLE OPERATIONS.
Kevin Tolman, USA
Service Delivery Manager
19
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Climate Risk Strategy
At Hansen, we recognise the interconnectedness of climate
and sustainability issues within our broader operations
and take a holistic and precautionary approach to the
management of risks and opportunities.
Hansen is committed to reducing emissions and responding
to stakeholder concerns when considering the risks of climate
change. In FY24, Hansen explored the possible impacts of
climate change in its global operations, which resulted in the
identification of potential risks and opportunities that may
impact Hansen over the short, medium and long-term.
A summary of these is shown in the table below:
Transition Risks
Physical Risks
Transition Risks are driven by policy, regulation, technology development,
reputation, and market shift from goals to decarbonise
Physical Risks are driven by extreme
weather and long-term shifts in climate
patterns that have direct impacts
Policy & Legal
Markets
Technology
Reputation
Acute
Chronic
Risk from existing
and emerging
regulations to
address climate
change adaptation
creating challenges
for business wins
and retention and
increased costs
and complexity
of compliance
Risk from changing
supply and demand
as economies react
to climate change
driving increased
barriers to and
costs of capital
Risk from emerging
technologies to
support the global
transition to low
carbon creating
stability risks due to
the implementation
of lower emission
technology across
Hansen’s assets and
sites, while servicing
an increased demand
for solutions from
new and existing
customers
Risks of damage
to brand value and
loss of consumer
base from failing
to meet stakeholder
expectations and
shifting public
sentiment about
climate change
Risk of increasing
severity of weather
events, sea level
rises and increases in
global temperatures
causing:
• Productivity
losses
• Service and
disruptions
• Higher energy
costs
Risk of longer-term
changes in weather
patterns creating
increased frequency
of supply chain
disruption and
damage to data
centre infrastructure
from increases in
sea levels
Transition and Physical Opportunities
Resource Efficiency,
Energy Source and Resilience
Reputation
and Markets
Workforce
Centralise the procurement of energy across
the company and take advantage of market
mechanisms to mitigate against energy cost
and reliability risks.
Hansen is already making this shift globally.
As a result, Hansen’s emissions footprint will
likely see a shift in makeup (from scope 2 to
scope 3) and a reduction as outsourced data
centres are more efficient and powered with
renewable energy.
This supports customers expecting cloud-
native services, and limits extreme weather
event risk.
Customers are increasingly seeking
support for services to facilitate and bill
for their own supporting zero-emission
energy solutions driving increased
demand for Hansens products and
services. Leverage and market existing
green solutions offerings to enhance
reputation and reach new customers.
Strengthen the employee value proposition
by acting on sustainability.
Key Mitigating Activities
• Implementation of global Sustainability Strategy
• Long-term planning and preparation for upcoming mandatory disclosures
• Develop global carbon emissions baseline while undertaking emissions
reduction activities
• Robust business continuity planning processes
• Promoting and innovating renewable energy software development
and ensuring the adaptability and reliability of services
• Ongoing monitoring of market conditions
• Shift to cloud-based data management
• Robust business continuity planning
processes
• Lead time planning for equipment
procurement
20
Annual Report 2024
Hansen Technologies Ltd
Hansen’s current climate change strategy is to address Hansen’s
climate-related risks, capitalise on the opportunities identified
and support the transition to a low carbon economy through:
• Measurement and management of Hansen’s carbon footprint.
– Benchmarking its global GHG emissions and measure
its whole of business emissions intensity
– Establishing an emissions reduction pathway with targets
aligned to the Science Based Targets initiative (SBTi)
– Offsetting hard to abate emissions across global operations
• Assessing and managing the risks arising from climate
change and future carbon constraints relevant to the business
• Collaborating with customers, and other stakeholders
through meetings, feedback, surveys, conferences and
showcases and our sustainability (ESG) reporting.
Our goal is to innovate our products and build capability to help
facilitate the global transition to low carbon energy production,
such as our products that support Virtual Power Plants (VPP),
Community Solar and other services that our customers are
increasingly providing as they embrace a renewable future.
Beginning in FY25, Hansen will engage with experts and
perform climate scenario analysis to better understand how
exposures to climate change impacts will evolve over time
under different climate scenarios. We expect Hansen’s climate
change strategy to evolve in response to emerging potential
impacts of climate change on business operations and the
outcomes of this scenario analysis.
In FY25, Hansen’s focus will be on beginning to embed
climate considerate decision making across the business
and addressing the specific key risks and opportunities
that Hansen has identified.
This will be achieved through:
• Encouraging employees to engage with emissions reduction
activities and build further capability to understand and
manage climate-related risks and exposures
• Review of relevant policies and procedures
• Active assessment of suppliers
• Further exploration of the short, medium and long-term
impacts of climate change on the business.
Climate Risk Management
In preparation for expected mandatory climate reporting
requirements, this report is structured in line with the TCFD
framework and sets the foundation for Hansen in its preparation
for Australia’s forthcoming mandatory climate-related financial
disclosure standards. In early 2024 we ran a series of
workshops, supported by independent experts, on climate-
related content involving executives and senior leaders
across Finance, Legal, Product, Technology and Risk
with representatives from our operations in APAC,
EMEA and the Americas.
Climate change and other ESG related risks are embedded
in Hansen’s risk management process and risk register.
Hansen identifies, assesses, and manages climate change
risks alongside all other risks as an integral part of its Enterprise
Risk Management (ERM) framework, and this Climate Report
is seen as a subset of the ERM framework. As with other risks
Hansen’s climate risks are managed across the Group
according to Hansen’s risk governance structure and
risk management process, with oversight and assurance
provided to the ARC and Board.
21
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
At Hansen, we support and adopt a precautionary approach
to environmental challenges; and are actively seeking to
undertake initiatives that promote greater environmental
responsibility that in turn drives economic value for
our stakeholders.
As a software company, especially one operating within
the energy and communications sectors, Hansen has a
unique opportunity to blend technological innovation with
environmentally-focused solutions. By developing and refining
our software solutions. We seek to help our customers optimise
end user energy consumption, improve grid efficiency, and
facilitate the integration of renewable energy sources and
innovative energy friendly products, Hansen can play a pivotal
role in reducing the carbon footprint of the sectors we support.
This approach is at the heart of our Sustainability Strategy.
Our Hansen Suite for Communications, Technology & Media
helps our customers bring novel product offerings more quickly
to market helping deliver greater access to digital information
and communications for their end customers. The utilisation of
communications products is key to supporting new and efficient
energy products, including smart meters, demand energy
response and many other emerging solutions.
Using data analytics and artificial intelligence, our software can
enhance the forecasting of energy demand, secure transactions
in energy trading platforms, and ensure more efficient use of
resources, helping drive down costs and boost the economic
performance of our stakeholders in this space. We are also
continually seeking ways to deliver more efficient ways
of working and that includes the environmental impact
of the data centres we utilise.
ENVIRONMENT:
ACTING ON CLIMATE CHANGE AND THE ENVIRONMENT
Australian Operations
Since FY21
Certified Carbon
Neutral
GHG reduction from
5,564 tCO2-e to 4,638 tCO2-e
Electricity emissions
reduction from 5,042 tCO2-e
to 3,606 tCO2-e
17%
Waste and E-Waste
Management Policy
Environmental and
Climate Change Policy
Developed Global
Sustainability Strategy
Delivered
28%
GHG 100% OFFSET
22
Annual Report 2024
Hansen Technologies Ltd
Our customers’ end users across both our verticals demand
personalised, proactive service. To meet this need, a robust
technology infrastructure is essential, fostering innovation,
guiding customer journeys, ensuring regulatory compliance
and enhancing Net Promoter Score (NPS).
With respect to the energy sector, our innovative and market-
leading products actively support zero-emission energy
solutions and improve access to affordable, reliable, and
modern energy services. In the face of rising energy costs,
we help energy companies embrace modern technology,
enabling equitable and inclusive energy solutions. Through
our efficient software, we enhance customer experience and
loyalty, driving industry innovation and regulatory compliance.
As a leader in supporting the intricate needs of the industries
we serve, we are proud of several notable achievements
in FY24 including being amongst the very first cohort of
technology companies to be assessed as ‘Ready for Open
Digital Architecture (ODA)’ by industry group TM Forum; and
in spearheading the digital transformation for a major Nordic
energy retailer.
Our pioneering district-heating project in Finland is a prime
example of how we leverage technology, such as artificial
intelligence, to boost efficiency and accelerate the shift
towards zero-emission energy solutions. This effort
illustrates our belief in the symbiotic relationship between
technological advancement and sustainable practices,
aimed at future-proofing our offerings in a changing world.
These are just a few of the many examples of our dedication
to cutting-edge technology and environmental responsibility.
Recognising the link between accessibility and sustainability,
we also prioritise efficient coding and comprehensive accessibility
measures. This approach not only supports energy efficiency
but also underscores our commitment to inclusivity, aligning
with the UN SDGs. We are working towards meeting global
standards such as Web Content Accessibility Guidelines
compliance to assist enhancing our accessibility offerings such
as in-screen reader compatibility, keyboard navigation,
adjustable font sizes and contrast ratios and multi-lingual
interfaces.
Artificial intelligence enhances our operations and assists in
our goal to make our products more accessible by streamlining
service delivery and helping to ensure our solutions are robust,
secure, and unbiased. Through our purpose-built technology
and a focus on incremental innovation, we consistently deliver
value. Central to our strategy is managing crucial data securely
to support our customers’ business comprehensively.
DIGITAL INNOVATION
Vattenfall, one of Europe’s largest energy producers
and retailers, has successfully gone live with Hansen
EDM helping them streamline operations across
Sweden, Denmark, and Norway, automating
balance, settlement, and billing processes in
their move towards renewable energy and digital
transformation. We are delighted that Hansen can
play a critical role as a valued partner in supporting
their transition to fully renewable energy.
Innovative and sustainable solutions (including digital accessibility)
Our innovative and market-leading products are actively supporting zero-emission
energy solutions and helping to improve access to affordable, reliable, and modern
energy services.
Raymond Hayter, New Zealand
Senior Vice President, Software Delivery
23
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
With the rapid changes in the energy sector, Hansen is
committed to promoting renewable energy development
and ensuring the adaptability and reliability of services.
We see our role as one of helping guide our customers
through the transition from traditional energy systems
to advanced, sustainable grids with two-way energy
flows that are crucial for efficiency and environmental
sustainability.
The transition to renewable electricity and the rise of
Distributed Energy Resource Management (DERM)
products drive a need for continued innovation.
These innovations are not only responsive to shifts
in customer demand but are also pivotal in the journey
towards net-zero carbon emissions. The Hansen Suite
for Energy and Utilities is designed to help the growth
of new business models in the energy and utilities sector,
and we aim to offer more than traditional Customer
Information Systems (CIS).
Driven by the diversity and challenges of the energy and
utilities landscape, Hansen prioritises agility and innovation.
We support novel applications like Virtual Power Plants (VPP)
and Electric Vehicle (EV) integration, demonstrating our
software’s versatility and our commitment to renewable
energy.
The integration of our Configure, Price, Quote (CPQ), and
Catalog solutions into large-scale energy retailers highlights
our ability to enhance product configurations and customer
experiences. With energy price volatility on the rise, digital
transformation is no longer optional but essential for
survival and competitiveness.
Renewable energy development & transition/service adaptability & reliability
Our focus on innovative technology to boost efficiency reflects our efforts
towards upgrading infrastructure to be more sustainable.
RENEWABLE ENERGY INNOVATION
Advancing renewable energy solutions –
Virtual Power Plants
Underlining our commitment to advancing renewable energy
solutions, Hansen played a pivotal role in a groundbreaking
initiative supported by the Finnish Government. This leveraged
Hansen’s innovative software solutions including Hansen
Trade and Hansen MDM/EDM, in the rollout of a VPP aimed at
enhancing energy management and grid balancing services.
The project focuses on optimising energy procurement for a
network of base stations while simultaneously providing crucial
electricity grid balancing services to the local Transmission
Service Operator (TSO). By leveraging the smart management
of backup power from batteries, the VPP offers unparalleled
flexibility in electricity supply across thousands of base
stations in the radio access network, adjusting seamlessly
to the varying energy demands throughout the day.
A key objective of the solution is to facilitate the integration
and deployment of renewable energy sources, like wind
power, into the grid. By efficiently managing when to store
and utilise wind energy, the VPP plays a critical role in the
transition towards a zero-carbon future. It ensures that
renewable energy is available more consistently, even in
periods when wind generation is low, by intelligently storing
energy and releasing it to meet demand.
Scaling Community Solar Projects Across
the United States
As we move towards a decarbonised future, Hansen is
working with companies like Gridwealth (formerly Hampshire
Power) to provide the mission-critical software required to
scale adoption of Community Solar. Through our back-end
systems and operational expertise Hansen enables these
companies to bring forth the next era of renewable energy.
Making Solar Power Accessible
While it may not be feasible or practical for every person to
install and maintain their own solar panels, Community Solar
provides local solar facilities that can be shared by everyone.
A single community solar project can often power hundreds
of homes. Subscribers benefit by knowing that more
of their energy usage comes from a renewable source,
and they also see reduced energy costs. All residential
customers can enjoy the benefits, and businesses can
subscribe to the solar farms as well.
Alin Mihaita Tanasa, Denmark
Software Developer
24
Annual Report 2024
Hansen Technologies Ltd
Our Australian Operations
Commencing in FY22, our FY21 Australian operations were
certified as carbon neutral by Climate Active and we are very
proud to report that our Australian Operations have been
certified as carbon neutral for three years in a row. During FY24
we assessed more deeply our supply chain and surveyed our
Australian staff to assess how their Working from Home and
commuting habits impact our GHG emissions.
Scope 1 emissions
Scope 1 emissions include the refrigerants and fuels used in
our Data Centres. Our scope 1 emissions for our Australian
Operations will become zero once we have completed the
closure of our Data Centres.
Scope 2 emissions
Scope 2 emissions relate specifically to electricity purchased
for our new Office and our Data Centres. Our primary office
in Melbourne is in a NABERS 4 rated building. For the purposes
of our Carbon Neutral status our Electricity emissions are
calculated using a location-based approach.
Scope 3 Emissions
Hansen’s Scope 3 emissions encompasses emissions that
are not produced by Hansen itself but by those that Hansen is
indirectly responsible for in its value chain. Scope 3 emissions
include all sources not within the scope 1 and 2 boundaries.
Our growing business creates a challenge in maintaining our
Scope 3 emissions and future reductions rely on continued
engagement with our suppliers and ongoing education
for our people.
GHG emissions
We offset 100% of our Australian Scope 1-3 GHG emissions and are committed to
undertaking a phased approach to becoming a carbon neutral company globally.
Australian Operations Certified Carbon Neutral
Australian
Emissions
(FY23 tCO2-e)
100%
OFFSET
Scope 1
Scope 2
Scope 3
3,305.0
1,175.8
157.3
Australian GHG Emissions by Type
FY21
FY22
FY23
Waste and Water
ICT Services
and Equipment
Working
From Home
Purchased Goods
and Services
Stationary Energy
& Refrigerants
Business Travel
Professional
Services
Electricity
1100
2200
3300
4400
tCO2-e
5500
Australian Scope 3 GHG Emissions by Type
600
500
400
300
200
100
FY21
FY22
FY23
Professional
Services (35%)
Electricity (26%)
Business
Travel (20%)
Purchased Goods
and Services (6%)
Working From
Home (6%)
ICT Services and
Equipment (4%)
Waste and
Water (3%)
Stationary
Energy (1%)
tCO2-e
25
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
FY23
FY22
FY21
Scope 2 (tCO2e)
Scope 3 (tCO2e)
3,305
3,971
4,533
301
436
509
28% reduction since FY21
Australian Electricity Emissions –
Location Based Approach
Much of the reduction in electricity emissions from FY21 relates
to the progressive shut down of our previously owned and
operated data centres. We are close to the completion of a
migration project of our data centres to new outsourced and
energy efficient centres. Our provider invests heavily in energy
efficiency schemes and sources 96% renewable energy globally
across all their sites through direct Power Purchase Agreements
and other initiatives, with several of the sites housing our data
sourcing 100% renewable energy. They also have a range of
other energy saving initiatives including heat export.
Australian Emissions Reduction Strategy
Our emissions reduction activities have already delivered
significant benefits. During FY23 our Australian Operation’s
emissions intensity has reduced by 16.3% from FY22,
to 90.28 tCO2-e per million dollars of revenue.
We are on track to achieve our overarching target to reduce the
emissions intensity of our existing FY22 business operations
in Australia by 50% from our FY22 intensity of 107.88 tCO2-e
per million dollars of revenue, by the end of FY26, and to
ensure a reduction in the absolute emissions of our existing
FY22 business operations in Australia by no less than 40%
by the end of FY26.
Details of our Carbon Neutral status and emissions reduction
strategy can be found on our website in the Sustainability section.
Australian GHG Emissions Offsets
While we continue to work on reducing our emissions, we have
been offsetting 100% of our Australian Operation emissions.
This year we invested more than A$43k into a renewable wind
power project at Chitradurga, Karnataka India. Chitradurga is
approximately 200 KM from Bangalore the capital of Karnataka
state. The project is one of the biggest in this area and proves
the capability of tapping into the wind energy available in the
existing barren land in the state of Karnataka, which is deficit
in power and peak energy requirements. The project will be
commissioned in various phases and the lifetime of the project
activity will be for 20 years. The power generated will be
exported to the regional electricity grid currently dominated by
fossil fuel-based power helping to reduce overall greenhouse
gas emissions. The project will deliver 51 MW of wind power
through 28 1.5 MW wind turbine generators.
Our Global GHG Emissions
We recognise the collaborative approach that business must
make and the transformative change necessary to limit the
global temperature rise to 1.5°C. We have begun to assess
other locations to determine our global GHG emissions
baseline. We have also delivered a Supplier Code of Conduct to
all key suppliers which establishes expectations for our supplier
network to manage and mitigate their GHG emissions. We have
also migrated many of our offices around the world to more
centrally located sites close to public transport with high quality
end of trip facilities to encourage our people to use more public
transport or to walk or cycle to the office where possible.
As part of our Sustainability Roadmap, we will be setting
environmental targets and adopting responsible practices for
a transition to a net-zero, resilient economy. Hansen’s climate
strategy for our global emissions will be driven by establishing
an emissions reduction pathway with targets aligned to the
SBTi, with offsets being used for hard to abate emissions only.
To achieve this, Hansen is in the process of measuring and
benchmarking its global GHG emissions and the whole of
business emissions intensity. Once that is completed, Hansen
aims to initiate a program that encourages employees to
engage with emissions reduction activities and build further
capability to understand and manage climate-related risks and
exposures. We will also begin actively assessing our suppliers’
GHG emissions.
26
Annual Report 2024
Hansen Technologies Ltd
At Hansen, we recognise the impact waste and electronic
waste (e-waste) can have on the environment and human
health. During FY24, reflecting Hansen’s commitment to
minimising waste generation, promoting responsible disposal,
and contributing to a circular economy we developed a global
Waste and E-Waste Management Policy, which formalises and
builds upon our activities, recycling and waste management
practices globally.
The purpose of Hansen’s Waste and E-Waste Management
Policy is to guide waste reduction, e-waste management,
compliance, and continuous improvement across the
organisation and our supply chain. The policy aims to minimise
the environmental and human health impact of waste and
electronic waste, foster transparency, accountability and
promote a circular economy mindset.
Our policy is designed to achieve the following objectives:
• Waste Reduction: Minimise waste generation across
our sites by implementing measures that encourage
waste reduction, reuse and recycling.
• E-Waste Management: Ensure proper handling and
disposal of electronic waste to prevent environmental
pollution and promote the reuse and recycling of electronic
equipment.
• Compliance: Adhere to all relevant local, national,
and international laws and regulations related to waste
management and e-waste disposal.
• Employee Engagement: Educate and engage employees
to foster a culture of responsible waste management and
sustainability throughout the organisation.
• Continuous Improvement: Regularly review and update
our waste and e-waste management practices to align with
good industry practices and emerging technologies.
As part of our Acts of Impact initiative, we continue to
repurpose, sell, and donate data-cleansed laptops, cables,
and other infrastructure to give back to our people and
communities and reduce our e-waste.
Circularity and E-Waste
We have practices to reduce waste generation through prevention, reduction,
recycling, and reuse.
ACT OF IMPACT
Hansen Electronics for Non-Profit Organisations
(Surrey, United Kingdom)
The provision of electronic and modern technology is something
that many organisations in need, crave and require to power
their social missions. At Hansen, we strongly believe in the
transformative power of repurposed technology.
During FY24, the IT team in our UK operations showcased their
commitment to sustainability by repurposing computer monitors
for charitable causes. These monitors were donated to three
non-profit organisations in Surrey.
The first donation benefited the Ashtead Youth Club, where
the monitors played a vital role in establishing a film and music
production suite. Despite their modest size, the club has been
making significant strides in providing opportunities for young
people to socialise, learn new skills, and prepare for the future.
The second beneficiary was Aspire Schools, an organisation
dedicated to providing exceptional education to children facing
challenges in mainstream schools. Hansen computer monitors
are supporting this group in furthering their vision of creating
positive educational experiences.
The final batch of electronics from Hansen found a home
with Beyond Words, a non-profit organisation supporting
individuals with communication difficulties.
Supporting Not-for-Profit – Mocha Celis Argentina
Our team in Argentina seized an opportunity during their office
relocation to support a meaningful cause. They decided
to donate surplus furniture, such as desks and tables, to
Mocha Celis, a non-profit organisation dedicated to providing
education and support to marginalised communities,
especially transvestite, trans, and non-binary individuals.
Inspired by the organisation’s inclusive mission and the
story behind its founding, the team not only contributed
to the organisation’s practical needs but also symbolically
supported its efforts to empower and create opportunities
for vulnerable communities.
A visit to the school in late January allowed our team to
witness firsthand the positive impact of their contribution,
reinforcing the significance of their efforts.
Data Centre Closure – E-Waste
Demonstrating our commitment to our Waste &
E-Waste Management Policy we are very proud
to report that we have recycled over 1,200 kgs of
e-waste during the closure of our Data Centre. With
further re-purposing of equipment via donations,
virtually none of the equipment has gone to landfill.
27
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
SOCIAL:
UPLIFTING OUR PEOPLE, FUTURE WORKFORCE & COMMUNITIES
1,955+
2,600+
74%
A$50,000
People globally
(1,911.5 FTE)
Our people have engaged in over 2,600
separate LinkedIn learning courses.
27
22
Corporate
offices across
Countries
Benchmarked
our global gender
pay gap
Implemented a new approach
for managing performance,
Hansen Success Enablement.
of our people
indicated positive
engagement
31%
Women in workforce
donated to Médecins
Sans Frontières
Our global team is our biggest asset, and we’re passionate
about creating an environment that is safe, inclusive, and
stimulating. We’re setting our sights on not just maintaining,
but elevating these standards, ensuring that as we grow,
our workplace remains true to our company values.
We seek to ensure that every individual we impact through our
work is treated with dignity and respect. This goes beyond just
compliance; it’s about fostering a culture where human rights
are front and centre.
Looking ahead, we’re exploring new ways to empower the
communities we operate in and make sure our operations
leave a positive mark on everyone involved. We know
our commitment in these areas not only adds value to our
local communities but helps us attract and retain our pool
of highly talented people.
At Hansen, what sets us apart is our people. We have a diverse,
global and passionate team that works hard to deliver value to
our customers. Our people are experts in their fields, whether
they are creating new product features, serving our customers’
needs, or navigating the complex regulation of the sectors in
which we operate in. Our people take great pride in their work
and the direct impact they make.
Many of our people have stayed with us for long and fulfilling
careers, where they have had various opportunities and roles
within the company, in some cases welcoming back Hansen
alumni. Some started their journeys with us as interns while
still studying and remain with us in senior leadership
or management roles today.
We are committed to providing our people with a supportive
and challenging journey that enables them to perform and thrive.
28
Annual Report 2024
Hansen Technologies Ltd
30%+
30%+
25%
31%
on the Board
in the workforce
We are committed to creating an inclusive workplace that
values diversity, supports equity, and fosters innovation.
We see this as a strategic investment that boosts our financial
performance, our employee engagement, and our alignment
with global sustainability standards. Our goal is to set an
example for others, encouraging positive change in our
organisations, and showing that diversity, equity & inclusion
are core to who we are.
We actively seek to create a working environment
where everyone feels heard, respected, and empowered.
Our commitment to diversity, inclusion and equality extends
beyond demographic differences; it encompasses the
diverse thinking, backgrounds, and experiences that fuel
our innovation and drive our collective success.
We recently recruited a new board member increasing female
representation on the Board to 25% and we have 22% of
women in senior leadership roles and an above industry
average of 31% women in the workforce.
We recognise that the information technology sector, globally,
has a relatively low representation of women and Hansen
has identified this as a focus area for improvement. Hansen
is committed to further improving our gender diversity and
we will be developing long-term targets as part of our
Diversity, Equity & Inclusion (D,E&I) strategy refresh.
Our short-term objective is to maintain above industry levels
of female representation in our business at the following levels:
At Hansen, our comprehensive leave policy helps to ensure that
all employees have the chance to rejuvenate, care for personal
matters, and find balance, irrespective of their backgrounds or
circumstances. Our offerings include parental leave, personal/
carers leave, compassionate leave, annual leave, flexible
working arrangements, and dedicated support through
domestic violence leave.
During FY24, we began development of a D,E&I strategy.
At Hansen, we recognise the cultural and positive impact that
a robust D,E&I strategy can deliver. We know that fostering an
inclusive culture can drive innovation, enhance our competitive
edge, and enrich the lives of our employees. It is essential for
fulfilling our commitment to align with international sustainability
standards such as the GRI, and the United Nations Sustainable
Development Goals (SDGs).
By advancing our D,E&I strategy, we align ourselves with these
global standards and principles and seek to find and support
more women entering the Group through STEM pathways.
This alignment helps find ways our organisation can continue
to contribute to broader societal progress while fulfilling our
obligations as a responsible corporate entity.
Diversity, equity & inclusion
Hansen supports all forms of diversity – including gender, neurodiversity,
alternative belief systems and ethnicity. Diversity is embedded within the
strategies, culture, policies, and structures of Hansen’s workplaces.
DURING FY24, WE HAD 18 EMPLOYEES TAKING
ADVANTAGE OF OUR PARENTAL LEAVE GLOBALLY.
DURING FY24, 95% OF OUR PEOPLE CONTINUE TO
EMBRACE OUR FLEXIBLE WORKING ARRANGEMENTS
5 DAYS/WEEK
4 DAYS/WEEK
3 DAYS/WEEK
1 DAYS/WEEK
0 DAY/WEEK
2 DAYS/WEEK
Target
30 June 2024
% OF OUR
PEOPLE WORKING
IN THE OFFICE
29
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Hansen has a zero-tolerance policy towards discrimination,
harassment and bullying. We have a dedicated Complaint
& Grievance Policy and a Whistleblower Policy that sets out
processes for lodging complaints or grievances. We monitor
all complaints and grievances via a complaints register.
We are proud to report that in FY24 across our global operations
we have no incidence of reported discrimination or harassment.
Our median unadjusted gender pay gap across all our
employees globally excluding senior leaders is 14% (11% on
an average basis), this means that for every $1 earned by a
male our female workers earn ~$0.86. The median unadjusted
gender paygap for our senior leader group is 6%. While this
is better than industry averages, having now assessed our
unadjusted pay gap, we are starting to identify areas to focus
on and consider the analysis required to assess the adjusted
pay gap and decide on suitable actions to reduce any inequities
across our global workforce.
Diversity Metrics – Excluding powercloud
Median Unadjusted Pay Gap*
REGION
AGE GROUP
HANSEN
EMEA
APAC
AMERICAS
<25
25-34
35-44
45-59
>60
Headcount
FY22
1,543
527
724
292
56
507
443
445
92
FY23
1,631
521
813
297
103
589
443
408
88
FY24
1,615
537
809
269
81
590
430
428
86
Gender Diversity
FY22
Male
69%
72%
66%
73%
57%
64%
71%
74%
73%
Female
31%
28%
34%
27%
43%
36%
29%
26%
27%
FY23
Male
69%
71%
68%
68%
57%
68%
69%
71%
75%
Female
31%
29%
32%
32%
43%
32%
31%
29%
25%
FY24
Male
69%
72%
67%
68%
59%
67%
67%
74%
76%
Female
31%
28%
33%
32%
41%
33%
33%
26%
24%
Employee Type FY24
Full Time
Male
1,099
380
538
181
46
392
290
309
62
Female
485
137
264
84
33
195
130
108
19
Part Time
Male
14
9
3
2
2
1
–
8
3
Female
17
11
4
2
–
2
10
3
2
* Unadjusted pay gap ratio based on average salary excluding senior leaders.
$0.93
EMEA
$0.86
APAC
$1.02
AMERICAS
30
Annual Report 2024
Hansen Technologies Ltd
19:1
is the ratio of CEO
to median employee
compensation
Median Unadjusted Pay Gap Age Group*
Claire Robinson highlights the pivotal role
of showcasing female leaders in ICT to inspire
young girls and foster gender diversity.
“I have seen a significant change over the
years with social media and STEM education
in kindergarten and school programs, the
exposure of technology and seeing females
in key powerful roles for young girls.”
GIRLS IN IT
“It’s an exciting time for women and girls
in ICT, with companies like Hansen
showcasing female leaders driving
inclusion, diversity, and flexibility.
Supporting, uplifting, and acknowledging
females in these roles is crucial for gender
diversity, bringing fresh perspectives and
ideas to the organisation.”
Thu Tran reflects on overcoming obstacles as a
woman in the male-dominated IT, underscoring
Hansen’s commitment to diversity and career
advancement for women.
She shares – “As a woman working in the IT
industry, which is predominantly male, there
are often obstacles that need to be overcome.”
“I am constantly learning from the other
women at Hansen, who I look up to as
role models. With more and more women
joining this field, Hansen provides an
excellent working environment with
a focus on diversity, both in terms of
culture and gender. This has allowed not
only me, but also many other women, to
advance their careers in the IT industry.”
<25
$0.83
25-34
$0.93
35-44
$0.91
>60
$1.01
45-59
$0.93
April 25th is International Girls in ICT Day. Each year we mark this by spotlighting internally and
externally some of our remarkable women driving innovation and progress within Hansen.
31
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Ethnicity
Following our recent integration of powercloud, our expanding
team now comprises more than 1,955 individuals spanning
multiple countries and boasting fluency in more than 60
languages. We view this rich tapestry of diversity not just as a
hallmark of our organisation but as a potent competitive edge
and invaluable asset for our customers. We know that local
support fosters stronger relationships with our customers.
We’re dedicated to fostering unity among our diverse
workforce. Central to this is the art of storytelling, both
internally through our engagement platforms and externally
via social media channels. Our team members candidly
share their career trajectories, triumphs over adversity, and
embracement of opportunities. We celebrate personal interests,
hobbies, and family bonds, fostering deeper understanding and
inclusion through the sharing of cultural experiences.
We are a truly global and growing business.
2024 Employees (including powercloud)
INDIA 20.3%
NORWAY 5.4%
DENMARK 4.7%
ARGENTINA 3.3%
CANADA 2.2%
GERMANY 17.8%
VIETNAM 10.0%
AUSTRALIA 8.6%
UNITED STATES 7.5%
UNITED KINGDOM 8.0%
FINLAND 6.4%
NEW ZEALAND 2.4%
SOUTH AFRICA 0.6%
SWITZERLAND 0.5%
SWEDEN 0.9%
NETHERLANDS 0.4%
JAPAN 0.1%
MEXICO 0.1%
BRAZIL 0.3%
PORTUGAL 0.3%
IRELAND 0.3%
INDONESIA 0.1%
1,955
EMPLOYEES
32
Annual Report 2024
Hansen Technologies Ltd
Future career pathways
Our commitment to rewarding career paths, and ongoing development
opportunities helps to build a skilled and knowledgeable workforce and
a culture of ongoing improvement.
During FY24, we welcomed more than 18 graduates globally
and have been expanding our graduate program to include our
centres of excellence in Vietnam and Argentina, internships and
embracing new pathways programs to the IT sector.
Providing our people not only with career paths, but also
ongoing development, is critical to ensuring that they are
aligned with the business and remain motivated and driven
towards innovation. This starts with our comprehensive
onboarding program, where we allow all our new team
members time to immerse into our business, meet our key
leaders and get to know the Company and its vision and values
along with our products and solutions.
Upward mobility is a key aspect of Hansen’s commitment
to providing rewarding career pathways and development
opportunities to our employees. At Hansen, we internally
advertise our job openings and roles within the organisation to
support employees looking to advance their career pathways.
We are striving for a culture of high performance. We are an
equal opportunity employer and we want all our employees to
understand how their work contributes to Hansen’s business
strategy while helping them achieve their goals. To support this,
during FY24 we implemented a new approach for enabling
performance, Hansen Success Enablement program.
Key elements of our approach include:
• Goal setting – employees and managers mutually set
and agree on individual S.M.A.R.T. goals that are short
and longer-term.
• Development-focused – employees and managers
identify development goals that support achieving
business and career goals.
• Check-in meetings are regularly scheduled between an
employee and their manager to support ongoing coaching
and improvement.
• Continuous feedback – we encourage real-time, multi-
directional feedback. Employees receive insights from
their manager, peers, colleagues and other stakeholders,
supporting them to make immediate improvements and
recognise achievements.
• Hansen Values guide our behaviours on how we work
and achieve our goals.
• Being accountable – we document our goals to remind
ourselves of our commitments.
Performance management outcomes from our Success
Enablement program support our decision-making
for employee compensation, promotions, training, job
assignments, retention, and operational planning. We are
actively working to provide growth opportunities in a fair and
equal manner and, as a result, we are developing a highly
engaged workforce proficient in delivering and adapting to
market changes. We aim to create and maximise efficiencies
by providing clear direction and promoting a continuous
improvement mindset.
Meaningful conversations are key to ongoing development.
They motivate and drive accountability as well as aligning
employees with Hansen’s objectives. We aim to set
individualised goals that foster ownership, empowering
employees to take responsibility for their own success
and we provide ongoing training and support to our managers
to ensure we have effective and proactive conversations.
A
C
H
I
E
V
E
G
O
A
L
S
SET NEW GOALS
SET GOALS
WORK ON GOALS
R
E
G
U
L
A
R
C
H
E
C
K
-I
N
S
&
F
E
E
D
B
A
C
K
100%
82%
of our people receive regular
performance reviews
of our people already have
individualised goals set
33
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Future career pathways (continued)
Hansen is committed to creating a culture of high performance and providing
opportunities for career development and ongoing training for our employees.
At Hansen, we value training and professional development as
a way to grow professionally. We recognise that most career
learning takes place on the job. We also offer comprehensive
online training via our Hansen Learning platform with
mandatory, role specific and more general training courses
available. In addition to our custom-developed trainings,
which are often product or technology-specific, such as
our digital certifications and badges, all our employees
have access to the LinkedIn Learning portal with more than
21,000 expert led courses ranging from IT and technology
courses to professional skills and other interest topics
such as inspiring positive mental health.
The training we offer internally can be as simple as learning
to use an application and as complex as learning how to be
a software architect.
Development is often informal and has a wider application,
giving our people the tools to do a range of things relating to
uplifting capability and competency. It involves progression
from basic know-how to more advanced, mature or complex
understanding. It’s about developing transferable skills like
leadership, managing projects or organising information.
In the last 12 months our people engaged in over 2,600
separate LinkedIn learning courses.
Across FY24, our people have engaged in an average of
approximately 51 hours per FTE of up-skilling training,
development, mentoring and knowledge sharing.
Approximately 54 hours on average for women and
approximately 49 hours on average for men.
Recognising the importance of some of our key compliance
training programs we are proud to report that globally our
people are 96.3% up to date with our General Data Protection
Regulation (GDPR) training and 100% up to date with our
Security Essentials and Human Rights training.
Across Hansen, we have a range of programs designed
to welcome new and not so new people to the world of
technology and software development.
One such program that spans two continents is an
initiative which supports graduates in India and interns in
Denmark – creating a unique learning experience where
students become the teachers. One cohort of young
professionals joined our program in mid-2022.
Fast forward just 10 months, and these interns have
transitioned into the role of mentors, guiding, and shaping
this year’s new batch of enthusiastic interns and inspiring
future interns and graduates.
Intern Crew to Tech Lead – Shweta Manerikar
Shweta has progressed from intern to PL SQL specialist
and now tech lead over the last eight years. She aims
to further enhance her leadership skills through external
courses and LinkedIn learning for future development.
“The opportunities I have received in
Hansen have allowed me to learn and
grow practically. I never imagined being
a tech lead so soon, but I was focused,
worked hard, and gave my all. I am
keen to keep focusing on furthering
my growth and development.”
MENTORING AND DEVELOPMENT
34
Annual Report 2024
Hansen Technologies Ltd
Employee experience and wellbeing
We are committed to ensuring that all our employees and any staff in our supply
chain are paid a living wage and provided with adequate working conditions.
We are committed to creating a culture where everyone feels heard, respected,
and empowered, regardless of their background or circumstances.
At Hansen, we strive to optimise the employee experience at all
stages of the employment lifecycle by fostering a strong culture,
through organisational values, and supporting employees with
benefits, such as equitable remuneration, opportunities for
development and mental health initiatives.
We have a diverse and global workforce, and we ensure that
all our employees and any staff in our supply chain across all
our locations are paid a living wage, provided with adequate
working conditions, respect their right to disconnect, and can
raise any concerns, anonymously if they wish.
We embrace a range of tools to listen and seek input,
including our annual engagement survey and various
pulse-check surveys, which we run throughout the year.
We are pleased to report that our last survey represented
a very strong employee voice, with an 85% completion rate.
89% of our people stated they can be themselves at work,
with 86% stating that everyone can succeed at Hansen no
matter who they are (e.g. all ages, cultural backgrounds,
gender, races, religions etc.) and 89% stating that they
have trusting relationships.
74% of our people indicated positive engagement, 84%
indicated positive inclusivity sentiment and 84% indicated
positive sentiment around wellbeing.
At Hansen we have several ways that we recognise and
reward our colleagues and teammates. All of these are
powerful in their own way.
Salute Success is one specific initiative at Hansen that allows
our people to recognise their teammates who have brought
to life our Hansen Values as they have gone about their day, on
specific work tasks, to build our culture and community spirit,
or to contribute to customer or project results and impact.
For some years now all our eligible Hansen employees have been
able to participate in our profit share plan. The plan is designed
to share the company’s profit with those who have been part of
the success. The plan allows for the distribution of a percentage
of Net Profit after Tax.
Evolving our Office Offerings
As we expand our business across the globe, we have also
been reviewing and renewing our office locations. As we assess
our offices, we look at the lighting, the heating and cooling
options and what we can do to reduce our overall impacts with
recycling and energy choices of building providers. We look
to ensure there are good end of trip facilities, good access for
public transport; and aim to align with local and international
certifications for environmental and healthy buildings.
In June 2023, we moved into our new home in the west of Pune
at the brand-new Amar Tech Park in a Building certified with
IGBC (Indian Green Building Council). This state-of-the-art
workspace which includes breakout hubs, and recreational
areas is behind a significant uplift in our team coming together
to collaborate and have fun. It also boasts several green
initiatives such as rooftop solar and wastewater recycling.
In September 2023, the Hansen Norway (Oslo) office relocated
to a new space. Our new Oslo office offers an impressive range
of amenities including a fully equipped gym and convenient
bike parking facilities, encouraging environmentally friendly
commuting options. The design of the new space is thoughtfully
planned to cultivate a social and collaborative atmosphere.
Late in 2023, we opened the doors to our new office in Argentina
overlooking downtown Buenos Aires. Our new flexible working
environment has space for everyone who wants to work in the
office plus plenty of room for meetings and social connections.
In January 2024, we officially moved into our new home in
Hammersmith, London. Our new office space, in the recently
refurbished Metro Building, offers great facilities and is located
close to vibrant and eclectic cafes, pubs, restaurants, shops,
markets and fitness and entertainment opportunities. The office
is located close to multiple tube lines and buses with great end
of trip facilities including secure spaces for bikes. The building
boasts a BREEAM Three-star rating and is part of the Better
Buildings Partnership – a collaboration of leading property
owners who are working together to improve the sustainability
of commercial buildings.
Across all our offices globally we have implemented energy
saving and waste management features such as:
• The use of glasses, ceramic mugs, crockery and cutlery.
We don’t use disposable ones.
• Monitors use screen savers
• Motion sensor office lighting
• Separated recycling including, printer ink, batteries
and e-waste where we can.
We are also proud to report that our office in Sønderborg,
Denmark boasts a DGNB Gold rating which includes great
features such as roof top solar.
35
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Health and safety
At Hansen, we take safety in the workplace seriously and work to ensure the health,
safety and wellbeing of all our people. We strive for a work culture where safety is
considered everybody’s responsibility.
Consideration of the physical health of employees which
includes embedding safety policies and procedures to
minimise accidents, maintain lower absence/sick leave rates
and optimise productivity is of paramount importance to
Hansen. Our goal is to work in partnership with our people
to reduce the impact of workplace injury and illness. During
FY24, we implemented a new global Health & Safety Policy.
The policy applies to all business operations, workers,
contractors, and functions, including those situations where
our people and contractors are required to work off-site.
All our people are encouraged to raise incidents or hazards
they may identify within the workplace, including both our
offices, and remote working locations. Where incidents
or hazards are identified, investigations are conducted,
and preventative and corrective actions are identified
and managed through to completion.
During FY24, we are very proud to report our
Lost Time Injury Frequency Rate (LTIFR) across
our global operations is 0.
Aligned with our values at Hansen we seek to provide an
environment of innovation, openness and transparency
and encourage all our people to care about each other,
to be respectful, treating others like you want to be treated
and genuinely embracing our differences, like family.
PEOPLE AND FAMILY
FOCUSED AND
COMMITTED
Caring about others,
being respectful, treating
others like you want to
be treated. Genuinely
embracing our
differences, like family.
Focused on
understanding the
customer’s needs &
being passionate about
delivering an exceptional
customer experience.
ONE UNITED TEAM
TREAT IT LIKE
ITS YOUR OWN
Sharing knowledge
and leveraging our
global experience.
An environment that
encourages innovation
and facilitates openness
and transparency.
Make business decisions
with the same level of
consideration you would
if you were making them
for yourself.
PROMOTING HEALTH AND WELLBEING
As a global business, our global team takes part in R U OK? Day.
It’s more than just a day, it’s a movement that aims to empower
all our workers to identify the signs that someone might not be
OK and offer guidance on how to listen and how to help. To
support our efforts in the space we have also encouraged our
people to engage in short videos and courses on supporting
positive mental health and well-being. We also provide our team
members with tips and tools to have meaningful conversations
about mental health.
Hansen offices worldwide participated in World Mental
Health Month. In line with this initiative, several offices across
Hansen established partnerships with local charities to make a
significant impact through our Acts of Impact. Teaming up with
the renowned Black Dog Institute, Hansen in Australia
participated in the ‘One Foot Forward’. This challenge
encouraged participants to walk or run from 40 to 150km
throughout October. The aim was to raise funds to support
ongoing mental health research and crucial support services
provided by the Black Dog Institute and symbolise the collective
progress towards improved mental and physical well-being.
In Argentina, we held meetings dedicated to coaching,
mindfulness and yoga. Our people were able to enjoy a
moment to connect with themselves and disconnect a little
from day-to-day problems. Across our other offices we
participated in activities, such as shared morning tea and
encouraged meaningful conversations about mental health
and well-being.
36
Annual Report 2024
Hansen Technologies Ltd
Community development
Developing strong relationships with local stakeholders and minimising negative
impacts from Hansen’s operations and solutions is not just rhetoric at Hansen.
We embed this thinking into our day-to-day operations.
Our Acts of Impact initiative was purposefully designed to
encourage our people to make a meaningful, long-lasting, and
purposeful impact in our local communities and, where practical,
to the global society. Initially this initiative was targeted to run
during our 50th year of sustainable operations. The success of
this initiative was so great, we have made it an annual program
with many worthy activities taking place across FY24.
By donating time through volunteer programs, Hansen employees
directly engage with the communities we operate in, offering our
skills and expertise to support local initiatives such as education,
mentorship, or environmental conservation. This provides
tangible benefits to the community and fosters employee
engagement and a sense of purpose within the company.
Through the donation of computer equipment, Hansen helps
bridge the digital divide and empower communities by providing
access to technology and educational resources. This can help
enhance digital literacy, facilitate online learning opportunities,
and support local businesses through improved connectivity
and access to information.
Hansen also actively supports key charities such as Médecins
Sans Frontières and has been contributing to them for several
years. At Hansen our global team also regularly raises funds for
key local charities and services.
37
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
SUPPORTING MÉDECINS SANS FRONTIÈRES
Médecins Sans Frontières, also
known as Doctors Without Borders,
is an international humanitarian
organisation that provides medical
assistance to people affected by
conflict, epidemics, disasters, or
exclusion from healthcare.
Médecins Sans Frontières delivers
emergency medical care to those in
need, often in remote or dangerous
areas where access to healthcare is
limited or non-existent. Their teams
of doctors, nurses, and other medical
professionals work to save lives and
alleviate suffering by providing medical
treatment, performing surgeries, and
addressing public health issues.
Médecins Sans Frontières also
advocates for improved access to
healthcare and raises awareness
about humanitarian crises around the
world. Through their work, Médecins
Sans Frontières seeks to uphold the
principles of impartiality, neutrality,
and independence in providing
medical aid to those most in need.
ACT OF IMPACT – EMPOWERING RURAL CHILDREN: A BEACON OF HOPE
Vision, technology, and access to the
right resources are crucial to achieving
success in life. However, in some areas,
people lack basic amenities that hinder
their progress and development. This
is particularly true in large and bustling
countries like India, where government
support may sometimes fall short.
Nevertheless, some businesses
and individuals step up to offer their
time and support whenever possible.
During FY24, our Global Hansen IT
team members based in India
partnered with the National Institute
for Sustainable Development.
The National Institute for Sustainable
Development is a non-profit
organisation that focuses on various
aspects of societal upliftment,
including education, health,
employment, minority rights, gender
equality, housing, child and youth
development, food security, nutrition,
tribal welfare, and livelihood
enhancement. With their guidance, the
team identified a primary school in the
village of Jewale Baleshwar, near Pune,
where around 30 children lacked basic
school supplies.
The Hansen team came together
and generously contributed towards
procuring essential supplies such
as backpacks, water bottles, colouring
books, crayons, pencils, and other
necessities for the children.
On 26th April 2024, the team visited
Jewale Baleshwar in India to deliver
the donations and spend time
interacting with the students, creating
a meaningful experience for both our
team and the children.
38
Annual Report 2024
Hansen Technologies Ltd
Hansen is committed to maintaining the highest standards
of ethics and integrity across all levels of its operations.
As part of this commitment, Hansen adheres to stringent
anti-corruption policies which are communicated and
reinforced through comprehensive training programs.
Hansen takes a proactive and transparent approach
to combating corruption to foster a culture of integrity
that supports our long-term business success.
Maintained our ISO 27001
and ISO9001 certification
Commenced a global policy
and procedure review
Implemented enhanced
Code of Conduct
DEVELOPED OUR INAUGURAL CLIMATE
REPORT APPROVED BY THE BOARD
Maintaining the highest vigilance around privacy
and security is vital as a company that manages
our own sensitive data and our customers.
DELIVERED NEW SECURITY
REPORTING FEATURE
UPDATED OUR CHARTERS TO INCLUDE
CLIMATE CONSIDERATIONS
OUR FOCUS ON MAINTAINING STRONG
GOVERNANCE AND SECURITY PRACTICES
TO ENSURE TRANSPARENCY, ACCOUNTABILITY
AND ETHICAL CONDUCT, AS WELL AS OUR
FOCUS ON REGULATORY COMPLIANCE, AND A
PROACTIVE APPROACH TO RISK MANAGEMENT
ARE KEY ENABLERS FOR OUR OVERALL
SUSTAINABILITY STRATEGY.
GOVERNANCE:
OPERATING OUR BUSINESS ETHICALLY & RESPONSIBLY
39
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Data privacy and cyber security
All team members are required to undertake mandatory annual privacy and security
training, which includes assessment modules to test an individual’s understanding
of our key privacy and security obligations.
Hansen implements appropriate security measures across all
information security areas and IT processes to preserve the
confidentiality, integrity and availability of information that is
processed, transmitted and stored by Hansen IT systems and
services, and to comply with applicable laws, regulations and
contractual commitments.
We apply General Data Protection Regulation (GDPR)
equivalent data privacy requirements to all activities which
involve the collection, processing, and management of personal
data, unless a local jurisdiction requires otherwise.
During FY24 there were no notifiable data breaches or security
incidents reportable to global regulators.
We continue to heavily invest in our cyber security programs
and systems to provide the highest levels of security aiming to
proactively predict, prevent, and respond to cyber risks and to
further enhance our cyber security risk management practices
to keep pace with the evolving threat landscape and to continue
to support our customers.
IT Security Governance
Hansen’s security governance structure is illustrated below:
Hansen’s Board retains ultimate responsibility for Hansen risk
management activities including information security. The Board
will ensure that the information security program is operating
effectively within the context of cyber threats to Hansen.
IT Security Framework
Our Information Security Framework takes a risk-based
approach to cyber security. Hansen acknowledges that it is not
possible to defend against all cyber attacks but that measures
can be taken to reduce the impact to Hansen and its customers
by building a cyber resilient organisation. Our Framework
components are based on, and informed by the NIST CSF,
ISO27001/2 and other global standards.
Our Information Security Objectives are to:
• Build a security-aware organisation.
• Prioritise protection based on the value of Hansen
information assets.
• Enable secure product development outcomes.
• Improve cyber security maturity of IT Security controls
and processes.
• Increase Hansen cyber hygiene and resilience.
• Enable effective Incident Response.
Hansen’s Information Security Management System (ISMS)
is comprised of security policies, standards, governance
mechanisms, and risk management activities.
The ISMS is based on the best practices and approach
described in the ISO 27001:2022 and supports Hansen’s
Information Security Objectives by defining and regularly
assessing our risk-based approach to information security
management.
Hansen has adopted the US National Institute of Standards
and Technology (NIST) Cyber Security Framework (CSF) to
measure its current and target state cyber maturity, in addition
to prioritising initiatives to treat security risks.
HANSEN BOARD OF DIRECTORS
AUDIT AND RISK COMMITTEE
SECURITY STEERING COMMITTEE
INFORMATION SECURITY WORKING GROUP
SECURITY
ARCHITECTURE
SECURITY
PROGRAM
MANAGEMENT
THIRD PARTY
MANAGEMENT
SECURITY RISK,
BUSINESS CONTINUITY
& COMPLIANCE
MANAGEMENT
BUSINESS ALIGNMENT
SECURITY GOVERNANCE
SECURITY
OPERATIONS
Information Security Framework
40
Annual Report 2024
Hansen Technologies Ltd
Responsible and ethical procurement/Human rights/Modern slavery
Hansen encourages our people and our suppliers to not only comply with laws
and regulations but also to go beyond and improve their environmental, social,
and ethical performance.
Hansen is dedicated to recognising and upholding the human
rights of everyone connected to our operations, supply chains,
and the communities where we are active. We strive to adhere
to the highest ethical standards and integrity, affirming our
commitment to the Universal Declaration of Human Rights,
the International Covenants on Civil and Political Rights, and
on Economic, Social, and Cultural Rights, along with the Core
Conventions of the International Labour Organization (ILO) and
its Declaration on Fundamental Principles and Rights at Work.
Additionally, we endeavor to align our practices with the United
Nations Guiding Principles on Business and Human Rights
(UNGPs) and the OECD Guidelines for Multinational Enterprises,
seeking compliance across all areas of our business.
At Hansen, we maintain rigorous employment practices,
prohibiting forced, bonded, or indentured labour and supporting
the principle of freely chosen employment. We conduct thorough
checks to prevent child labour and implement necessary
remediation measures. We comply with local regulations
on wages, benefits, and working hours, including overtime,
and go beyond compliance ensuring all our employees, across
all our locations receive a living wage. Our commitment extends
to striving to provide a workplace environment that prioritises
dignity and respect, free from discrimination, harassment,
or any abuse, and where workers’ rights to voice grievances
and form unions are fully supported without interference.
Our Whistleblower Policy and Complaint & Grievance Policy
provide avenues to employees, contractors and related parties
across our operations and supply chain, to raise concerns
and voice grievances.
We enforce effective systems and controls to prevent modern
slavery and comply with applicable laws. Our Human Rights
Policy available on our website sets the minimum standards
for all Hansen employees, contractors, suppliers, and business
partners, emphasising our collective responsibility to report
any human rights concerns, including potential modern
slavery issues.
41
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Supplier Code of Conduct
Hansen is committed to sustainable and ethical procurement.
We recognise that when making purchasing decisions,
Hansen has an opportunity to make a positive environmental
and social impact. Hansen’s approach to sustainable and
responsible procurement is aligned to the principles of the UN
SDGs. In addition, we are committed to complying with all
relevant laws and regulations.
We expect the same standards from our suppliers and
encourage them to go beyond compliance to applicable
laws and take responsibility to continually improve their
environmental and social performance and ethical behaviour.
During FY24, we officially launched our Supplier Code of
Conduct available on our website.
This Code applies to all suppliers with a business relationship
with Hansen, including vendors, contractors, and consultants.
Suppliers must read, understand and ensure that their business
and supply chains meet, or exceed, the standards set out in this
Code. Suppliers must communicate this Code to related entities,
their own suppliers, and subcontractors who may support
them in supplying to Hansen, so that they are made aware of,
understand, and comply with this Code.
Suppliers’ ability to meet or exceed the standards set out in this
Code is a key consideration when Hansen makes procurement
decisions, and it is an ongoing condition for doing business with
Hansen regardless of whether this Code is formally incorporated
into an agreement. Failure to comply may result in Hansen
seeking alternative suppliers.
42
Annual Report 2024
Hansen Technologies Ltd
Business ethics/anti-competitive behaviour/regulator compliance
Hansen adheres to stringent anti-corruption policies, conducting regular risk
assessments, and provides comprehensive training programs.
Hansen has a zero-tolerance policy towards corruption and
anti-competitive behaviour in all its forms, including bribery,
extortion, fraud, money laundering and other corrupt practices.
Workers are prohibited from engaging in any activity that
constitutes corruption or that may give rise to a conflict
between their personal vested interests and the interests of
the organisation or its shareholders. Hansen also has a policy,
available on our website, which details specific procedures for
reporting suspected corruption or bribery incidents and is in
place across our global operations. We are proud to report there
have been no reported incidents of corruption, fraud or legal
actions related to anti-competitive behaviour during FY24,
and we have had no incidences raised through the whistle
blower procedure.
The effectiveness of our communication and training initiatives
is regularly re-assessed. Employees have access to report any
concerns or violations anonymously. Hansen also conducts
regular risk assessments to identify and mitigate corruption
risks across our global operations. Findings from these
assessments can highlight potential vulnerabilities related
to procurement processes and international business
transactions, which can be more susceptible to corruption risks
due to varying local regulations and practices. To address these
risks, Hansen has several targeted measures, including internal
controls, enhanced due diligence procedures for partners and
vendors, and increased transparency in transactions. These
actions are complemented by our robust training programs.
Code of Conduct
We recognise that our company is made up of the individual
employees representing our organisation globally. Each person
has an individual responsibility for their own behaviour and
should take accountability for their actions and choices. The
success of our organisation is intricately tied to the principles
that guide our actions and decisions.
Our Code of Conduct, available on our website, serves as the
cornerstone of our commitment to ethical conduct and creates
a framework that defines our commitment to operate with the
highest standards of trust, fairness and responsibility.
We encourage all our workers to exhibit the highest levels of
personal integrity, teamwork, and appreciation for our diverse
individual and company cultures. We believe in always treating
people fairly, whether worker, supplier, service provider, or
customer, while always looking for ways to improve our service
and contribution to the communities in which we live and work.
HANSEN HAS A ZERO-TOLERANCE
POLICY TOWARDS CORRUPTION AND
ANTI-COMPETITIVE BEHAVIOUR IN ALL ITS
FORMS, INCLUDING BRIBERY, EXTORTION,
FRAUD, MONEY LAUNDERING AND
OTHER CORRUPT PRACTICES.
43
Annual Report 2024
Hansen Technologies Ltd
SUSTAINABILITY REPORT CONTINUED
Leadership, governance and transparency
Key sustainability enablers
Hansen is focused on maintaining strong governance and
security practices to ensure transparency, accountability, and
ethical conduct. We maintain regular reviews of our regulatory
compliance, including ensuring transparency in our reporting,
and participating in active risk management.
Aligned with the recommendations of the Australian Stock
Exchange, Hansen is governed according to 8 key principles
which can be found in our Corporate Governance Statement.
This and other governance policies can be found on our website.
Approach to tax
Hansen is committed to paying the correct amount of tax and
adhering to the rules set by relevant authorities in all regions of our
global operations. The company ensures that all transactions
and tax strategies are fully justifiable. Hansen aims to pay taxes
promptly, comply with all applicable laws, and utilise available
incentives and reliefs while maintaining transparent and
constructive relationships with tax authorities.
The Hansen Global Tax Governance Framework, approved by
the Board and regularly reviewed, outlines the company’s tax
management strategies and policies. This framework includes
identifying and managing tax risks, ensuring professional care
and diligence in all tax matters, and maintaining consistency
with overall strategy and risk management. Hansen ensures
that internal documents and/or external advice supports
decision-making in uncertain tax situations.
Hansen employs a three-lines-of-defence model for tax risk
management, involving in-house specialist tax professionals,
regional finance teams, and external advisors. Tax risks
are managed under both the Enterprise Risk Management
Framework and the Hansen Global Tax Governance Framework.
The Tax Risk Register is reviewed at least annually, and significant
or complex transactions are externally reviewed and presented
to the Audit and Risk Committee.
Hansen provides regular tax training to the finance team and
from FY24 will disclose the country of tax residence in its
financial statements. The Global Head of Tax ensures that
tax matters are regularly reported to the Board.
Risk assessment and assurance process
At Hansen, we adopt a comprehensive approach to risk
assurance, combining self-evaluation with independent
external assurance activities. Our Enterprise Risk Management
Framework which incorporates our approach to effectively
managing climate and other sustainability risks is reviewed
annually by the Audit and Risk Committee (ARC) a subcommittee
of our Board. The Framework is both linked to, and used to define,
our assurance and governance processes through the ‘Three
Lines of Defence’ model (as depicted in the diagram below).
1ST BUSINESS OPERATIONS
• An established risk and
control environment
2ND OVERSIGHT FUNCTIONS
Finance, HR, Legal
• Strategic Management
• Policy and Procedure Setting
• Functional Oversight
First Line
The first level of control
environment is the business
operations which include
Regional Risk Champions.
Second Line
Oversight functions in the
company such as Finance,
HR, Legal set directions,
define policy and provide
assurance. This includes
Executive team members and
Corporate Risk Management.
Third Line
External audit and internal
audit reviews are the third
line of defence, offering
independent challenge to the
levels of assurance provided
by business operations and
oversight functions.
3RD INDEPENDENT ASSURANCE
External Audit, Internal Audit and other
Independent Assurance Providers
• Provide independent challenge and assurance
Risk and Control
Definitions for Line
of Defence
Risk and Control
Risk and Control
BOARD,
AUDIT & RISK
COMMITTEE
44
Annual Report 2024
Hansen Technologies Ltd
The outputs from the risk process are used to identify the
nature of risks faced by the business and then to ensure an
effective control environment is established for our operational
activities (first line). The operational application of policies and
procedures to manage areas of risk is monitored by the related
functional teams (second line).
Our goal is to ensure that material risks are accurately measured
and effectively managed. Our strong risk management culture
is critical for achieving strategic, operational, and commercial
objectives. It also serves as a competitive advantage.
Key Aspects of our Enterprise Risk Management Framework:
Embedded Practices:
Dynamic Approach:
Risk Register:
Employee Responsibility:
• We integrate risk
management practices
into all business processes
and operations. This
approach ensures
consistent, effective,
and accountable actions
across the organisation.
• Our risk management
approach is dynamic.
We proactively anticipate,
detect, acknowledge, and
respond to changes in
both internal and external
environments.
• We follow the principles
outlined in ISO 31000:
2018 Risk Management –
Guidelines.
• We maintain a risk register
that covers our global
operations. This register
helps us communicate
and manage risk effectively
across the organisation.
• All Hansen employees
play an active role
in risk management.
They proactively identify
and communicate potential
risks within their individual
business units and regions.
Executive Involvement:
CFO Ownership:
Audit and Risk
Committee (ARC):
Board Oversight:
• The leadership team
identifies and assesses
significant risks facing the
company. They participate
formally in the annual risk
review and informally in their
daily roles.
• Depending on their roles,
individual employees may
also contribute to the
annual risk assessment.
• The Chief Financial Officer
(CFO) owns the risk process.
Their responsibilities include
updating the Risk Register
annually and maintaining
the Risk Management
Framework.
• The CFO also educates the
Executive team and regional
management on the risk
management program.
• The ARC oversees the Risk
Management Framework.
They ensure that risk
management processes
are effective and well-
maintained.
• The ARC receives regular
reports on risk management,
including updates to the
Risk Register and the Risk
Framework.
• Ultimately, the Board is
responsible for establishing
and ensuring effective risk
management processes.
• The Board receives periodic
reporting through the Audit
and Risk Committee.
Peter Beamsley, Australia
Head of Investor Relations and Sustainability
45
Annual Report 2024
Hansen Technologies Ltd
BOARD OF DIRECTORS AND COMPANY SECRETARY
The qualifications, experience and special responsibilities of each person who has been a
Director of Hansen Technologies Limited at any time during or since the end of the financial
year are provided below, together with details of the Company Secretary as at the year end.
Mr David Trude
Non-Executive Director
Chairperson since 2011
Director since 2011
Age 76
Mr Don Rankin
Non-Executive Director
Director since 2019
Chair of the Audit and Risk Committee
Member of the Remuneration Committee
Age 72
Mr Andrew Hansen
Global CEO and Managing Director
Managing Director
Managing Director since 2000
Age 64
David has extensive experience in a variety of financial services
roles within the banking and securities industries. He holds a
degree in commerce from the University of Queensland and
is a member of many professional associations including the
Stockbrokers and Financial Advisers Association of Australia
and the Australian Institute of Company Directors.
David is also a Non-Executive Director of Cboe Australia
Pty Ltd and Non-Executive Director of ASX listed Acorn
Capital Investment Fund Limited and MSL Solutions Ltd.
Don Rankin joined the Hansen Technologies Board in 2019. He
was one of the founding partners of Pitcher Partners and National
Chairperson of the Pitcher Partners Association for 11 years.
With over 30 years’ experience advising private and family
businesses across a broad range of industries, he specialises
particularly in assisting clients in the management, growth and
evolution of their business. Don sits on a number of Family Board
Advisory Committees. For many years Don was on the board of
the Victorian Chamber of Commerce and Industry and was its
President for three years.
Don has a long involvement with Cottage by the Sea in Queenscliff,
a charity for disadvantaged children and is its current Treasurer.
Andrew has over 40 years’ experience in the IT industry, joining
Hansen in 1990. Prior to Hansen, he held senior management
positions with Amfac-Chemdata, a software provider in the
health industry.
Andrew led Hansen from its listing on the ASX in 2000 to today
being a global business with a strong history of decades of strong
profitability and growth.
Andrew is responsible for implementing the Group’s strategic
direction and overseeing the everyday affairs of the Hansen Group.
Mr David Howell
Non-Executive Director
Director since 2018
Chair of the Remuneration Committee
Member of the Audit and Risk Committee
Age 66
David is a highly accomplished executive having worked
across a number of industries including financial services,
retail, technology and social media. David has had roles as
Chairperson, Managing Director, Non-Executive Director and
Board Advisor across large corporates, SMEs and early-stage
businesses, including private equity.
David is also a Non-Executive Director of The Pistol (a digital
marketing agency).
Ms Julia Chand
General Counsel and
Company Secretary
Company Secretary since 2014
Age 54
Julia joined Hansen Technologies in 2007 and plays a strategic
role as General Counsel as well as Company Secretary. Julia
has significant legal experience in IT, financial services and retail
organisations. As Company Secretary she is responsible for
the Company’s corporate and ASX obligations.
46
Annual Report 2024
Hansen Technologies Ltd
Ms Lisa Pendlebury
Non-Executive Director
Director since 2022
Member of the Audit and Risk Committee
Member of the Remuneration Committee
Age 49
Mr David Osborne
Non-Executive Director
Director since 2006
Member of the Audit and Risk Committee
Age 75
Lisa has more than 20 years of experience in the healthcare,
consumer products and finance industries. She is currently
General Manager, Corporate Development at Regis Healthcare
and has previously worked at Mayne Pharma, Pacific Brands,
JPMorgan and CVC Capital Partners.
Lisa has extensive experience in business development,
mergers and acquisitions, corporate strategy, investor relations,
financial reporting, corporate governance, remuneration
and sustainability. She is a CPA and holds a Bachelor
of Commerce and Bachelor of Science degree from the
University of Melbourne.
David is a Fellow of the Institute of Chartered Accountants,
and a Fellow of the Australian Institute of Company Directors,
with over 50 years of financial management, taxation and
accounting experience in public practice.
David’s experience includes having been the Audit Partner
of his accounting practice and a Registered Company
Auditor for over 25 years.
He also has experience in the various aspects of risk
management. David has a long-standing association with
Hansen, having been a Board member for some years prior
to the Company’s listing on the ASX in June 2000.
Ms Rebecca Wilson
Non-Executive Director
Director since March 2024
Age 51
Rebecca Wilson is an experienced company director within
private, ASX listed and not-for-profit organisations. She is
currently the Non-Executive Chair of healthcare technology
company Alcidion Limited (ASX ALC), and AI-enabled medical
instrumentation business LBT Innovations (ASX LBT), and the
Independent Director of the Tomisich Foundation.
In her executive career, Rebecca held global leadership roles
in corporate affairs and investor relations. She has extensive
experience in ESG, stakeholder engagement, issues and crisis
management, M&A, and investor relations.
She holds a BA Arts and Grad Cert in Applied Finance &
Investment. She is a Graduate of AICD with AICD course
certificates in Climate Governance, Cyber Security and
Ethics in the Boardroom.
Mr Bruce Adams
Non-Executive Director
Director since 2000
Member of the Remuneration Committee
Age 64
Bruce has over 30 years’ experience as a commercial and
corporate lawyer. He has practised extensively in the areas
of information technology law, contract law and mergers and
acquisitions and has considerable experience advising listed
public companies.
Bruce has held positions as partner of two Australian law
firms and general counsel of an Australian owned international
group of companies. He holds degrees in Law and Economics
from Monash University and is a graduate of Australian Institute
of Company Directors.
47
Annual Report 2024
Hansen Technologies Ltd
The Directors present their report together with the Financial Report of the consolidated entity (‘the Group’), being Hansen
Technologies Limited (‘the Company’) and the entities it controlled for the financial year ended 30 June 2024, and Auditor’s
Report thereon. This Financial Report has been prepared in accordance with Australian Accounting Standards.
Principal activities
The principal activities of the Group during the financial year were the development, integration, and support of billing systems
software for the Energy and Communications sectors. Other activities undertaken by the Group include IT outsourcing services.
OPERATING AND FINANCIAL REVIEW
Review of operations
The Group’s operating performance for the fiscal year compared to last year is as follows:
2024
A$ Million
2023
A$ Million
Variance
%
Operating revenue
353.1
311.8
13%
Underlying EBITDA(1)
92.4
99.5
(7%)
Underlying Cash EBITDA(1)
76.9
78.4
(2%)
NPAT
21.1
42.8
(51%)
Underlying NPAT(2)
26.0
41.5
(37%)
Underlying NPATA(1,3)
39.7
55.6
(29%)
Basic Earnings per Share (EPS) (cents)
10.4
21.1
(51%)
Basic EPS based on Underlying NPATA (EPSa) (cents)(1)
19.5
27.5
(29%)
(1) The Directors believe the information additional to IFRS measures included in the report is relevant and useful in measuring the financial performance of the
Group. These include: EBITDA, NPATA and EPSa. These measures have been defined in the Chairperson and Managing Director’s Joint Report on page 8.
(2) Underlying net profit after tax attributable to members excludes separately disclosed items (net of tax). Further details of the separately disclosed items are
outlined in Note 4 to the Financial Report.
(3) Underlying net profit after tax (adjusted) attributable to members excludes separately disclosed items and acquired amortisation (net of tax). Further details
of the separately disclosed items are outlined in Note 4 to the Financial Report.
The Group demonstrated robust growth at the top line, however, the net profit after tax (NPAT) was affected by the recent acquisition
of powercloud, a turnaround business within the German energy and utility market. Additionally, there was a reduction in the
quantum of research and development capitalised, as this investment was redirected towards our lower cost talent centres.
Further details on the Group’s results are outlined in the Chairperson and Managing Director’s Joint Report on page 8.
In February 2024, Hansen acquired a German-based energy billing software provider, powercloud, expanding the Group’s presence
into a key target market of the DACH(a) region. The purchase price of €17.7 million was 100% debt funded through an existing debt
facility. powercloud was acquired as a turnaround project, and while it is still early in our integration process, and there remain some
anticipated risks to mitigate, Hansen has made progress towards improving the profitability of the asset.
As part of Hansen’s ongoing efforts to improve efficiency and operate more sustainably, at the end of the year Hansen’s owned and
operated Data Centre in Melbourne, Australia was closed(b). This was a well-planned exit as the Data Centre is no longer core
to the strategic direction of the Company.
The Group’s operating revenue for FY24 was $353.1 million, an increase of 13.2% on FY23. Excluding the $18.4 million contribution
from powercloud, Hansen’s core business revenue for FY24 was $334.7 million, an increase of 7.3% (or an 8.2% increase excluding
revenue from the closed Data Centre) from FY23.
DIRECTORS’ REPORT
(a) DACH Region refers to the three central European countries of Germany (D), Austria (A) and Switzerland (CH).
(b) Data Centre effectively completed decommissioning in June 2024. Revenue for Data Centre has been reported in the Asia Pacific Region
(FY23 $5.0m & FY24 $2.6m).
48
Annual Report 2024
Hansen Technologies Ltd
Reflecting the significant Operating revenue growth of Hansen over the last 10 years (15% CAGR since FY14), in June 2024
a restructure was announced. To best support Hansen’s global reach, increased size and anticipated continued growth, the
Company will have two operational verticals effective from 1 July 2024. This restructure helps position Hansen for further growth
both organically and inorganically and creates careful succession planning at all levels.
Niv Fernando, the Group’s new Chief Strategy Officer, has re-joined Hansen to focus on Mergers and Acquisitions and other strategic
projects, while David Castree, Global President – Energy & Utilities, and Scott Weir Global President – Communications & Media, will
independently manage their respective verticals. As a result of these changes Graeme Taylor’s role as our former CEO concluded as
of 30th June 2024. Andrew Hansen resumes the broader role of Global CEO & Managing Director and Andrew will continue to focus
on strategic initiatives and provide overall guidance at the senior leadership level.
Excluding the contribution from powercloud, Hansen’s Energy & Utilities vertical achieved organic revenue growth of 14.7% to
$183.2 million from FY23, with strong performances across all the key regions.
Communications & Media revenue of $148.9 million increased 1.2% from FY23. While there was a 10.3% decline in the Americas
region, revenue generated for this vertical from the Asia Pacific region increased by 12.6% from FY24. There is an expectation of
more robust growth in FY25 due to a burgeoning pipeline of opportunities.
Demonstrating the flexibility of Hansen’s operations, the Group does not have a dedicated pool of people devoted to innovation,
enabling the Group to direct efforts where it is most needed. Across FY24, a large implementation project was underway for a major
client in Australia with significant resources devoted to this billable work. The Group’s operating centres in India, Vietnam and
Argentina are also beginning to deliver more innovation activities which is changing the cost profile over time. These two factors
have resulted in a lower than anticipated amount of capitalised development costs (R&D) during FY24. Despite this lower level
of capitalisation, the Group excluding powercloud maintained Underlying EBITDA margins of 30%.
Excluding powercloud, Hansen’s Underlying Cash EBITDA of $87.1 million increased by an impressive 11.1%. Hansen has a
50-year track record of consistent cash generation. Demonstrating this steady, consistent growth, Hansen’s Underlying Cash
EBITDA has grown 10.8% CAGR since FY19 (excluding powercloud).
The Group generated $59.1 million of operating cash flows, which has been used to retire net external debt of $37.3 million,
pay dividends of $18.4 million (net of dividend reinvestments), and fund $15.5 million of capitalised development costs.
Hansen borrowed an additional $55.3 million to fund the acquisition of powercloud and has already paid down $12.0 million
of this borrowing. At 30 June 2024, the Group’s total borrowings were $70.2m and its net debt position was $24.5 million.
Hansen’s overall leverage ratio remains very low at 0.3x.
At Hansen, only a portion of the overall R&D investment is capitalised. The business is continually evolving its products to exceed
customers’ expectations. Hansen averages approximately 400,000 hours of expensed or capitalised innovation activities annually.
This is in addition to the significant volume of activities that are customer funded. Both these segments of innovation contribute to
the development of the Group’ leading edge technologies.
This innovation is being recognised by industry bodies. In the past 12 months, Hansen featured in nine technology analyst reports
including the IDC MarketScape, in which Hansen was named in the ‘Major Players’ category. Hansen’s placement within the
Major Players category attests to the strength of the value proposition for the energy and utilities sectors, against the backdrop
of the energy transition.
Hansen’s Senior Vice President, Research and Development, Brian Cappellani was Honoured as Outstanding Contributor at TM
Forum Accelerate 2024 in Portugal. The Outstanding Contributor Award is a testament to Brian’s significant contributions in driving
the Communications industry to new heights. His invaluable role and direction in TM Forum’s ODA (Open Digital Architecture)
Components and Canvas project have been truly exceptional.
Billing segment
The Billing segment represents a major part of the Group’s business operations, delivering $347.6 million of revenue in 2024
(excluding powercloud $329.2 million) (2023: $305.0 million), which translates into a 14.0% increase (excluding powercloud
7.9% increase). Segment profit before tax was $30.3 million in 2024 (excluding powercloud $44.8 million) (2023: $58.7 million),
representing a 48.4% decrease (excluding powercloud 23.7% decrease).
49
Annual Report 2024
Hansen Technologies Ltd
DIRECTORS’ REPORT CONTINUED
Other activities
Segment revenues from other activities was $5.5 million in 2024 (2023: $6.8 million), representing a 19.1% decrease for the year.
This 19.1% decrease in revenues resulted from an expected reduction in business activity associated with the planned closure
of the Australian Data Centre completed in July 2024. Segment profit before tax was $1.0 million for 2024 (2023: $1.4 million),
representing a 28.6% decrease for the year.
Significant changes in the state of affairs
There have been no significant changes in the Group’s state of affairs during the financial year.
Subsequent events
No matters have arisen between the end of the financial year and the date of this report that have significantly affected or may
significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future years.
Opportunities and Business Risks
The business remains committed to increasing shareholder value while managing the risk profile of the Group.
The Energy and Communications markets continue to evolve and with this change comes complexity and opportunity. The
Communications vertical is experiencing rapid progress in the roll-out and adoption of 5G technology. Energy continues to develop
new offerings and the continued roll-out of green energy initiatives. Both verticals continue to develop enhanced digital platforms
to deliver a satisfactory customer experience.
To ensure we deliver on our strategic objectives, the Group continues to operate an Enterprise Risk Management Framework
that actively identifies, controls, plans and mitigates a wide array of risks across functions and geographies and seeks to unlock
opportunities to gain a competitive advantage.
The material business risks that have the potential to impact Hansen’s financial prospects and future performance are outlined
below, together with mitigating actions undertaken to minimise these risks.
Risk
Nature of Risk
Mitigating actions
Information
security, including
cyber attacks
Hansen may be exposed to an event
or events which may result in Hansen
or Hansen’s client’s information being
unavailable, lost, stolen, copied, or
otherwise compromised with adverse
consequences for the business.
Our information security risks remain
heightened due to the growing
sophistication and increased frequency
of cyber attacks within all industries.
As the nature of cyber crime is constantly evolving, Hansen continues
to invest in a wide range of information security protection and
preventative measures in response to the increasing threats presented
by cyber attacks and cyber terrorists.
Hansen’s current Security Framework is based on inputs from leading
industry standards such as ISO27001/2, National Institute of Standard
and Technology (NIST) and Payment Card Industry Digital Security
Standard. The overarching framework Hansen follows is the NIST
Cyber Security Framework. An approach to improvement initiatives
is currently being developed based on the Australian Cyber Security
Centre’s Information Security Manual.
Critical to the success of our program are the following key success
factors:
• continuous, visible support and commitment of Hansen’s executive
management
• central management, with a robust and common strategy
and policy across Hansen
• continuous training and awareness of all employees
• based on threat intelligence led thinking, adapting to the
adversaries Tactics, Techniques and Procedures
• continual improvement
50
Annual Report 2024
Hansen Technologies Ltd
Risk
Nature of Risk
Mitigating actions
Technology
change or
failure of
critical systems
Significant shifts in technology, including
Artificial Intelligence, may adversely impact
our business or the demands
of the industries Hansen serves.
A critical technology system or process
failure, whether by environmental disruption,
error, or attack, may cause significant
adverse impact to Hansen
and Hansen’s clients.
Hansen maintains a highly-skilled team of technology professionals,
who constantly test the potential utilisation and/or impact of emerging
technologies. Mitigation of technology risk and optimal utilisation of
new technology lies at the heart of Hansen’s software development
practices.
Hansen seeks to manage market change by maintaining its customer
first approach.
Hansen’s Business Continuity and Disaster Recovery Plans are tested,
updated, and reviewed on an annual basis. The testing ensures
that access to critical systems, including backup environments, are
restored and any potential disruption minimised.
Delivery Execution
Risk
The timely and effective delivery of software
solutions is critical to client satisfaction and
retention. Delivery execution risk arises
from potential delays, cost overruns, and
quality issues in delivering our solutions and
services.
Factors contributing to this risk include the
increasing complexity of client projects,
which can lead to longer development
cycles and resource constraints;
misallocation or shortage of skilled
personnel, which can impede project
timelines and quality; rapid changes in
technology and integration with legacy
systems, which can complicate project
execution; reliance on third-party suppliers
and partners, which can impact delivery if
they fail to meet their commitments; and the
risk of failing to adhere to evolving regulatory
requirements, which can lead to project
delays and additional costs.
To mitigate delivery execution risk, Hansen employs several strategies.
We implement rigorous project management methodologies to ensure
clear timelines, resource planning, and risk assessment for each
project. Adopting agile development practices enhances flexibility and
responsiveness to change, enabling quicker delivery cycles.
Hansen continuously evaluates and optimises its resource allocation
to ensure skilled personnel are available for critical projects.
By maintaining strong relationships with key technology partners and
suppliers, the Group secures reliable and timely inputs. Additionally,
Hansen establishes a robust compliance monitoring framework to stay
ahead of regulatory changes and integrate compliance checks into the
project lifecycle.
Foreign exchange Due to its international operations, Hansen
may be exposed to foreign exchange
movements, which may impact the value of
profits repatriated to Australia.
Hansen mitigates foreign exchange risk associated with its
international operations by, where possible, funding its investments
and operations in the local currency. Foreign currency transaction
risks can be hedged, where appropriate. Hansen does not hedge
translation risk on foreign currency earnings.
External operating
environment
Changes to the external operating
environment, including macroeconomic
factors such as inflation and interest rates as
well as geopolitical factors, may negatively
impact client demand and the cost of
providing Hansen’s products.
Hansen has a diversified geographic presence and varied product and
customer portfolio, which has a high portion of recurring revenues.
Hansen actively monitors the impact of changes in the external
operating environment on the business, including people, customers,
financial performance, and financial position.
Investment
opportunities
The Group has an active M&A program.
Key risks of this strategy include financial
challenges due to the substantial nature of
the investment and the possibility of diluted
shareholder value if anticipated synergies do
not materialise.
Integration difficulties, including cultural
clashes and loss of key talent, may disrupt
operations.
Potential risks relating to unsatisfactory
vendor disclosure of known risks.
Regulatory and legal risks, such as delays
in obtaining approvals, could hinder the
success of the acquisition.
Overestimating synergies and
underestimating integration complexity pose
additional risks.
Reputational damage may occur if the
acquisition is not executed effectively.
Hansen’s approach to M&A involves careful planning and execution,
with thorough due diligence to identify potential challenges and
synergies conducted.
Where an acquisition is made, a comprehensive integration strategy
with clear timelines and responsibilities is developed. Cultural
alignment and actions to retain key talent are priorities.
Hansen ensures financial projections are thoroughly analysed
and reviewed to avoid overpaying for the target company.
During and post integration robust financial reporting and control
systems are embedded. Hansen regularly assesses and adjusts the
integration process as needed.
51
Annual Report 2024
Hansen Technologies Ltd
DIRECTORS’ REPORT CONTINUED
Risk
Nature of Risk
Mitigating actions
Employee
recruitment
and retention
Hansen’s people are critical to the Group’s
ongoing success. Loss of key people may
lead to a loss of critical skills, knowledge,
and experience, which may disrupt
workflow, or impact key relationships
with stakeholders and impact Hansen’s
competitive advantages.
Hansen manages risks to the employee base by focusing on the
employee value proposition. Hansen strives to create a positive work
environment that fosters employee engagement and satisfaction.
Hansen offers competitive remuneration and benefits packages
tailored to the market in which personnel are based. Hansen conducts
regular performance reviews to support its people and identify any
potential issues early on.
Succession planning and knowledge sharing help mitigate any
potential loss of knowledge from employee movements.
Loss of customers Hansen maintains a diverse portfolio of Tier
1 and 2 customers. A loss of a key customer
due to market risk may negatively impact the
financial success
of the business.
Hansen has a diverse range of customers across geography and
vertical with no one customer delivering more than 7% of Hansen’s
total revenue.
Despite the relatively low risk of significant financial impact from the
loss of one customer, Hansen is focused on meeting and exceeding
customers’ expectations for system performance
and service delivery.
Climate Change
Transition Risks – driven by policy,
regulation, technology development,
reputation, and market shift from goals
to decarbonise.
Physical Risks – driven by extreme weather
and long-term shifts in climate patterns that
have direct impacts.
Hansen recognises the interconnectedness of climate and
sustainability issues within its broader operations and takes a
holistic and precautionary approach to the management of risks and
opportunities.
• Implementation of a global Sustainability Strategy.
• Long-term planning and preparation for upcoming
mandatory disclosures.
• Developing a global carbon emissions baseline while undertaking
emissions reduction activities.
• Robust business continuity planning processes.
• Promoting and innovating renewable energy software development
and ensuring the adaptability and reliability
of services.
• Ongoing monitoring of market conditions.
• Shift to cloud-based data management.
• Robust business continuity planning processes.
• Lead time planning for equipment procurement.
Outlook
At Hansen, the sectors we operate in, Energy & Utilities and Communications & Media, are dynamic and undergoing significant
digital transformations.
In the Energy & Utilities space the global addressable market for Customer Information Systems (CIS) is expected to grow
at a CAGR of ~13% over FY24-29(1).
The rapid roll out of renewable energy technologies, including smart grids, Virtual Power Plants and EV’s is driving the need for more
informed and sophisticated billing and support solutions. The rollout is also driving significant changes in the regulatory environment
as governing bodies race to develop policies to keep up with the technological changes while also controlling the shifting demand
curve that these technologies bring.
Ultimately the race towards the electrification of the home and transport is pushing all energy companies to upgrade and enhance
their solutions to stay relevant.
With regards to the powercloud acquisition, the integration work and investment to turnaround the business is underway. Our new
vertical structure provides additional management capacity to support the integration efforts and manage the anticipated risks
involved with transitioning the business to EBITDA profitability, which we expect to occur in late FY25.
In the Communications & Media sector at the end of 2023, there were 16.1 billion active IoT devices, a figure which is expected
to grow to 39.9 billion in 2033(2).
(1) mordorintelligence.com
(2) transformainsights.com
52
Annual Report 2024
Hansen Technologies Ltd
While the rollout of 5G networks has been slower to monetise than expected, the rapid proliferation of the IoT continues to drive
demand for Hansen’s products and services. As thought leaders in this space, Hansen has joined forces with Dutch CSP Odido
Nederland and Gomibo Platforms for a pioneering project aimed at monetising 6G technology funded by the National Growth Fund
of the Netherlands. As a Company that sits across the Energy & Utilities and Communications & Media, Hansen is well positioned
to support the transition of both industries.
Hansen remains committed to not just growing organically, but via a disciplined and focused aggregation approach. Hansen
is predominantly targeting businesses within the Energy & Utilities and Communications & Media industries, with a focus on
companies that are driving profitable innovation and growth.
Environmental regulations and climate change
The Group’s operations are not subject to any significant environmental Commonwealth or state regulations or laws.
Recognising the importance of sustainability for the future of the Groups operations and in preparation for mandatory sustainability
reporting – Australian Sustainability Standards and Corporate Sustainability Reporting Directive (Europe), Hansen has taken
significant steps on its Sustainability journey during FY24.
In FY24, Hansen developed and began implementing a global Sustainability Strategy based on 20 material sustainability
topics identified during FY23. The Sustainability Strategy is aligned with the ten principles of the UN Global Compact and key
UN Sustainable Development Goals. It aims to effectively manage the Group’s sustainability-related risks and create social,
environmental, and economic value through its products, services, and operations.
In this report Hansen has delivered its inaugural Climate Report. The report is structured in line with the Task Force on Climate-
Related Financial Disclosures (TCFD) framework and sets the foundation for Hansen in its preparation for Australia’s forthcoming
mandatory climate-related financial disclosure standards.
Commencing in FY22, Hansen’s FY21 Australian operations were certified as carbon neutral by Climate Active and we are very
proud to report that Hansen’s Australian operations have been certified as carbon neutral for three years in a row.
Hansen has set an FY26 emissions reduction target for its Australian operations. Its goal is to achieve an overarching target to
reduce the emissions intensity of the existing business operations in Australia by 50% from its FY22 intensity of 107.88 tCO2-e
per million dollars of revenue. The group also seeks to ensure a reduction in the absolute emissions of its existing FY22 business
operations of 5,543.4 tCO2-e in Australia by no less than 40%.
Hansen’s emissions reduction activities have already delivered significant benefits. During FY23, the Group’s Australian operations’
emissions intensity has reduced by 16.3% from FY22, to 90.28 tCO2e per million dollars of revenue and is on track to deliver on its
reduction targets for FY26.
As part of Hansen’s Sustainability Roadmap, the Group will be setting environmental targets and adopting responsible practices
for a transition to the net-zero, resilient economy. Hansen’s climate strategy for its global emissions will be driven by establishing
an emissions reduction pathway with targets aligned to the SBTi, with offsets being used for hard to abate emissions only.
To achieve this, Hansen is in the process of measuring and benchmarking its global GHG emissions and the whole of business
emissions intensity.
Corporate Governance Statement
Hansen and the Board are committed to achieving and demonstrating the highest standards of corporate governance.
A description of the Group’s current corporate governance practices is set out in the Group’s corporate governance statement,
which can be viewed at https://hansencx.com/about/investor relations.
Dividends paid and declared
A final dividend of 5 cents per share has been declared, partially franked to 2.1 cents per share, comprising of a regular dividend
of 5 cents per share. The final dividend was announced to the market on 21 August 2024, with payment to be made on
20 September 2024. The amount declared has not been recognised as a liability in the accounts of the Company as at 30 June 2024.
53
Annual Report 2024
Hansen Technologies Ltd
DIRECTORS’ REPORT CONTINUED
Dividends paid during the year, excluding dividends reinvested as part of the Company’s Dividend Reinvestment Plan (DRP):
• 5 cents per share partially franked to 2.3 cents dividend paid on 21 March 2024, totalling $9,065,525; and
• 5 cents per share partially franked to 1.5 cents final dividend paid on 20 September 2023, totalling $9,337,053.
This is consistent with the Board’s capital management policy that balances growth through acquisitions against the payment
of dividends.
Performance rights
Performance rights over shares may be issued to Key Management Personnel (KMP) as an incentive for motivating and rewarding
performance as well as encouraging longevity of employment. The issuing of performance rights is intended to enhance the
alignment of KMP with the primary shareholder objective of increasing shareholder value.
Performance rights over unissued ordinary shares granted by the Company during the financial year to the KMP as part of their
remuneration for the year ended 30 June 2024 are as follows:
Grant Date
Number of Rights Granted
on 1 Jul 2023(1)
Executives
A Hansen(2)
–
D Meade
24,485
G Taylor
70,631
R English
22,862
Total
117,978
(1) The number of rights granted that will vest is conditional on achievement of financial and non-financial hurdles under the LTI plan. The above KMP will be
awarded a combined total of additional 58,989 rights if they overachieve the performance measures. Refer to the Remuneration Report for further details.
(2) The resolution to grant Andrew Hansen’s FY24 LTI performance rights did not pass during the Company’s Annual General Meeting on 23 November 2023.
The Board intends to grant Andrew Hansen additional cash remuneration in lieu of the performance rights, subject to the same vesting conditions being achieved.
There were no rights granted to the KMP over unissued ordinary shares since the end of the financial year as part of their remuneration.
All grants of rights are subject to the achievement of performance measurements.
Further details regarding rights granted as remuneration are provided in the Remuneration Report.
Shares and performance rights
Unissued ordinary shares of the Company under performance rights at the date of this report are as follows:
Instrument
Plan
Grant Date
Vesting Date
Number of Rights
at 30 June 2024
Rights
LTI
15 Sep 2021
30 Jun 2024(1)
263,172
Rights
LTI
15 Sep 2022
30 Sep 2025(2),(3)
405,495
Rights
LTI
1 Jul 2023
30 Sep 2026(2),(4)
480,236
(1) Performance rights for the FY22 LTI plan of 241,576 have not exceeded the required specific annual KPIs and did not vest on 30 June 2024 and will be cancelled
in due course. Remaining rights of 21,596 vested on 30 June 2024.
(2) All performance rights will vest on the vesting date as indicated in the above table, subject to achievement of specific measurement criteria.
(3) Expected vesting date is advised in writing by the Board following consideration of performance during the measurement period, but no later than
30 September 2025.
(4) Expected vesting date is advised in writing by the Board following consideration of performance during the measurement period, but no later than
30 September 2026.
Performance rights holders do not have any right, by virtue of the performance right held, to participate in any share issue of the
Company. Performance rights will not give any right to participate in dividends or any voting rights until shares are issued upon
the exercise of vested performance rights.
54
Annual Report 2024
Hansen Technologies Ltd
Shares issued on exercise of performance rights
The following ordinary shares of the Company were issued during or since the end of the financial year as a result of the exercise
of performance rights:
Issued
Number of Ordinary Shares
Issued on Exercise of
Performance Rights
August 2023
722,550
October 2023
20,144
September 2024
21,596
Total
764,290
Indemnification and insurance of Directors, officers and auditors
Indemnification
The Company has agreed to indemnify all of the current and former Directors and officers of the Company and its controlled entities
against all liabilities to another person (other than the Company or a related body corporate) that may arise from their position as
Directors and officers of the Company and its controlled entities, except where the liability arises out of conduct involving a lack of
good faith. The agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and expenses.
The Group has not entered into any agreement to indemnify its auditors against any claims that might be made by third parties
arising from their report on the annual Financial Report.
Insurance
Since the end of the previous financial year, the Company has paid insurance premiums in respect of Directors’ and Officers’ liability
and legal expenses for insurance policies for current and former Directors and Officers, including executive officers of the Company
and Directors, executive officers and secretaries of its controlled entities. The Directors have not included details of the nature of the
liabilities covered or the amount of the premium paid in respect of the Directors’ and Officers’ liability and legal expenses insurance
contracts as such disclosures are prohibited under the terms of the contract.
No insurance premium is paid in relation to the auditors.
Rounding of amounts
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the
Financial Report have been rounded to the nearest one thousand dollars, or in certain cases, to the nearest dollar (where indicated).
Directors’ meetings
The number of meetings of the Board of Directors and of each Board Committee held during the financial year and the numbers
of meetings attended by each Director were:
Board Meetings
Audit and Risk
Committee Meetings
Remuneration
Committee Meetings
Director
Eligible
Attended
Eligible
Attended
Eligible
Attended
Mr David Trude
14
13
–
–
–
–
Mr Bruce Adams
14
14
–
–
6
6
Mr Andrew Hansen
14
13
–
–
–
–
Mr Don Rankin
14
13
7
7
6
5
Mr David Osborne
14
14
7
7
–
–
Ms Lisa Pendlebury
14
14
7
7
6
6
Mr David Howell
14
12
7
5
6
5
Ms Rebecca Wilson
4
4
–
–
1
1
55
Annual Report 2024
Hansen Technologies Ltd
DIRECTORS’ REPORT CONTINUED
Directors’ interests in shares
Directors’ relevant interests in shares of the Company or options/rights over shares in the Company as at the date of this report are
detailed below:
Directors’ Relevant Interests in:
Ordinary Shares
of the Company
Rights over Shares
in the Company
Mr David Trude
103,801
–
Mr Bruce Adams(1)
27,891,417
–
Mr Andrew Hansen(1)
28,663,262
168,998
Mr Don Rankin
25,000
–
Mr David Osborne(1)
28,125,448
–
Ms Lisa Pendlebury
13,869
–
Mr David Howell
43,805
–
Ms Rebecca Wilson(2)
–
–
(1) Each of Mr Bruce Adams, Mr Andrew Hansen and Mr David Osborne has a joint interest in a single parcel of 27,739,113 shares as at the date of this report.
(2) Rebecca Wilson was appointed as a Non-Executive Director on 28 March 2024.
Proceedings on behalf of the company
No person applied for leave of Court to bring proceedings on behalf of the Company or any of its subsidiaries.
Directors’ interests in contracts
Directors’ interests in contracts with the Company are limited to the provision of leased premises on arm’s length terms and are
disclosed in Note 25 to the financial statements.
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 in relation to
the audit for the financial year is provided with this report.
Non-audit services
Non-audit services were provided by the auditors of the Group during the year, namely RSM Australia Partners, network firms of RSM
and other non-related audit firms as detailed below. The Directors are satisfied that the provision of the non-audit services during the
year by the auditors 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.
2024
$
2023
$
Amounts paid and payable to RSM Australia for non-audit services:
– compliance services
3,515
13,715
Sub-total
3,515
13,715
Amounts paid and payable to network firms of RSM Australia for non-audit services:
– taxation services
50,279
39,636
– compliance services
56,548
48,149
Sub-total
106,827
87,785
Amounts paid and payable to non-related auditors of Group entities for non-audit services:
– taxation services
70,666
61,546
– compliance services
28,228
51,690
– ESG framework and policy review
56,000
–
Sub-total
154,894
113,236
Total auditor’s remuneration for non-audit services
265,236
214,736
Auditor’s remuneration is disclosed in Note 27 of the Financial Report.
56
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT
Dear Shareholder,
On behalf of the Board of Directors, I am pleased to present the Remuneration Report of the Group, consisting of Hansen
Technologies Limited (“the Company”) and its controlled entities for the 2024 financial year.
Across the 2024 financial year, the base Hansen business (excluding the recent powercloud acquisition) has delivered strong
revenue growth, stable Underlying EBITDA margins and continued to generate solid operating cash flow. The continued stability and
predictability of Hansen’s base business is testament to the strength and leadership of our global management team in continuing
to drive the business forward through a combination of new logo wins and the retention and expansion of existing customers.
In June 2024, Hansen announced key structural and leadership changes to the market, undertaken to best support Hansen’s global
reach, increased size and anticipated growth. Under the new structure, the Company will have two operational verticals effective
from 1 July 2024:
• Energy & Utilities – led by David Castree as Global President for Energy & Utilities
• Communications & Media – led by Scott Weir as Global President for Communications & Media
With the plans for the new structure finalised, Hansen’s current Chief Executive Officer (CEO), Graeme Taylor’s position as CEO
concluded effective 30 June 2024. Graeme has played a pivotal role in guiding the company over the past year, enabling the
Company to focus on establishing this new structure and providing stability through this period of change. Current Managing
Director (MD) and former CEO, Andrew Hansen, has resumed the role of Global CEO & Managing Director of Hansen, with the
new structure enabling him to continue his focus on strategic initiatives and provide guidance at the Executive level. Hansen also
announced the appointment of Niv Fernando, a former senior executive at Hansen, as the Chief Strategy Officer.
FY24 Short Term Incentive (STI) and Long Term Incentive (LTI) outcomes
At the completion of the 2024 financial year, the Remuneration Committee assessed the performance outcomes of the FY24 STI
scheme as well as the FY22 LTI scheme that concluded as at June 30th 2024.
Regarding the STI outcome, the Executive team exceeded the organic revenue growth target, and therefore 100% of the
measurement was awarded. The EBITDA target was however not fully achieved, with linear outcomes of 49%. The non-financial
performance measures for the Executive team were assessed and awarded based on clear and specific short-term strategic
initiatives that were set at the start of the year. The achievement of these non-financial targets is disclosed in this report.
Regarding the LTI outcome, the first measurement criteria was the relative TSR performance of Hansen versus the ASX Small
Ordinaries Index. This measurement criteria was not achieved. The second measurement criteria was aligned with achieving
revenue CAGR growth of 12.5% over the three-year performance period. Whilst organic revenues increased throughout this period,
the lack of M&A activity, due to elevated purchase price valuations and pandemic related challenges, resulted in this target not being
achieved. The KMP rights for this scheme have subsequently lapsed. Further information on the outcome of the FY22 LTI scheme
is outlined in this report.
2023 AGM results
Following constructive feedback received at the 2023 AGM, we have listened to our shareholders and have undertaken a review
of our compensation models for Directors, Executives and Key Management Personnel (KMP). As part of our review process,
we engaged the services of PricewaterhouseCoopers (PwC) and also worked with our stakeholders and sought feedback
on our updated remuneration structure.
Changes to FY25 STI
In response to feedback received, we have implemented changes to our FY25 STI plan. The FY25 STI plan replaces the Budgeted
EBITDA measure with a budgeted Underlying Cash EBITDA measure and introduces a minimum Underlying Cash EBITDA margin
gateway whilst retaining the Budgeted revenue measure. Underlying Cash EBITDA represents Underlying EBITDA less capitalised
development costs and is an important metric to incentivise management to make investment decisions aligned with an appropriate
return on investment. I am pleased to advise that to further align our remuneration practices with our long-term Sustainability
Strategy, the FY25 STI plan also introduces a compliance gateway related to the completion of mandatory compliance training.
57
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
Changes to FY25 LTI
At the 2023 AGM, we received some shareholder feedback, outlining concerns with the FY24 LTI scheme. Key concerns raised
against the scheme included a lack of transparency and a perceived misalignment of the scheme’s structure with shareholder
interests. We have subsequently sought investor feedback and expert third-party advice on our LTI structure. Key changes to
the FY25 LTI structure include:
• The introduction of an Absolute Total Shareholder Return (aTSR) growth metric with 50% of performance rights allocated to this
metric and prospective disclosure of the Absolute TSR growth measures. An Absolute TSR measure ensures that rewards are
directly aligned to shareholder returns over the vesting period.
• Retention of Organic Revenue growth and Underlying EBTIDA growth targets with the remaining 50% of the performance
rights allocated equally across the two measures. Performance against the Organic Revenue growth and Underlying EBITDA
growth targets will also be disclosed retrospectively in the FY27 Annual Report. As both targets are fundamental to how Hansen
Executives manage and execute on strategic initiatives, these targets remain core to the LTI scheme.
Absolute TSR growth targets align executive reward with what the Board considers to be acceptable levels of return to shareholders
over the performance period. An Absolute TSR metric ensures that rewards are directly aligned with shareholder returns over the
vesting period. Using Absolute rather than Relative TSR removes uncertainty associated with short-term fluctuations from peer
companies that are beyond the control of KMP, thus ensuring KMP remain focused on business fundamentals and are effectively
motivated to deliver long-term sustainable value to shareholders.
Organic Revenue growth is a transparent and easily measurable metric. It promotes sustainable performance and motivates our
KMP to develop and execute strategies that nurture customer relationships, improve product offerings, enhance operational
efficiency, and to prioritise profitable sustainable revenue streams over short-term gains.
Underlying EBITDA growth is a widely recognised metric by Hansen’s employees, shareholders and analysts. By focusing
on Underlying EBITDA growth, KMP are incentivised to drive operational excellence, optimise cost structures, and maximise
profitability, encouraging Hansen’s KMP to make strategic decisions that enhance the long-term financial health and sustainability
of the company.
All three of the above metrics and the revised allocation of the FY25 LTI, ensures our LTI structure remains strongly aligned with
shareholder interests and the Group’s strategic initiatives to generate sustainable long-term shareholder value by way of increasing
profitability and cash generation.
Improved disclosure
We understand our investors’ need for more transparent disclosures. To address this concern, we have committed to providing
retrospective disclosure of both our STI and LTI targets and hurdles. To this end, our FY24 Remuneration Report includes increased
disclosure of performance against our FY24 STI and FY22 LTI targets. We will continue to retrospectively disclose STI and LTI
targets and hurdles.
In Closing
Hansen as a unique founder led company is focused on sustainable growth and profits over the long term, whilst balancing
the challenges faced by our customers, employees and shareholders. This long-term focus helps ensure that Executive and
Management behaviours are always aligned with shareholders and their interests. The Remuneration Committee has introduced
the FY25 incentive scheme on this very basis.
The Board is also committed to the ongoing review of the Group’s Remuneration Framework to ensure it remains fair, transparent,
and achieves its objectives of incentivising and rewarding performance that optimises business and shareholder value and ensuring
the Company is well placed to attract, retain and motivate a talented Executive team.
Yours sincerely,
David Howell
Chair of the Remuneration Committee
58
Annual Report 2024
Hansen Technologies Ltd
OUR DETAILED REMUNERATION REPORT (AUDITED)
The Remuneration Report for the year ended 30 June 2024 outlines key aspects of our remuneration framework and has been
prepared and audited in accordance with the Corporations Act 2001.
Our Remuneration Report contains the following sections:
1. Persons to whom this report applies
2. Our remuneration framework
3. How reward is linked to performance
4. Remuneration details: Executive KMP
5. FY25 Incentive Plan
6. Contractual arrangements with Executive KMP
7. Remuneration details: Non-Executive KMP
8. Share-based remuneration disclosures
9. Other transactions with KMP
10. Employee Share Trust
1. Persons to whom this report applies
The remuneration disclosures in the Report cover the following persons who were classified as the Key Management Personnel
(KMP) of the Group during the 2024 financial year. KMP are those persons who, directly or indirectly, have authority and
responsibility for planning, directing and controlling the major activities of the Group:
Executives(1)
Andrew Hansen
Managing Director
Graeme Taylor(2)
Chief Executive Officer (CEO)
Darren Meade
Group Head of Delivery
Richard English
Chief Financial Officer
Non-Executive Directors
David Trude
Chairperson and Independent Non-Executive Director
Lisa Pendlebury
Independent Non-Executive Director
David Howell
Independent Non-Executive Director
Don Rankin
Independent Non-Executive Director
Rebecca Wilson
Independent Non-Executive Director (Appointed on 28 March 2024)
Bruce Adams
Non-Executive Director
David Osborne
Non-Executive Director
(1) These executives of the Group were classified as KMP during the 2024 financial year and unless stated otherwise, were KMP for the entire year.
(2) Graeme Taylor ceased to be a KMP effective 30 June 2024.
At the 2023 Annual General Meeting, the FY24 Remuneration Report was presented and received a 57.50% approval result from
shareholders, resulting in a first shareholder strike. A resolution for the issue of rights under the Long-Term Incentive (LTI) plan for the
Managing Director did not achieve the necessary votes for passage, with 54.68% voting against the resolution. As a result of this
outcome, if the Managing Director meets the measurement criteria for the FY24 LTI scheme, the incentive will be settled accordingly
as a cash payment.
59
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
2. Our remuneration framework
People are at the heart of the Group’s success, enabling us to deliver on our vision and long-term goals. Our remuneration
framework focuses on providing competitive fixed pay and variable pay that rewards achievement of the Group’s annual objectives
and long-term growth in shareholder value.
Remuneration outcomes are aligned with both individual and Group performance, ensuring that employees are rewarded for overall
Group achievement as well as their individual contribution to the Group’s success. This aligns remuneration to both individual
performance and value creation for shareholders.
(a) Remuneration governance
The Board annually reviews the Group’s remuneration principles, practices, strategy and approach to ensure they support the
Group’s long-term business strategy and are appropriate for a listed company of our size and nature.
The Board has delegated to the Remuneration Committee the responsibility for reviewing and making recommendations to
the Board regarding compensation arrangements for the Directors, Executive KMP and the balance of the Managing Director’s
direct reports. As at 30 June 2024, the Remuneration Committee was made up of five Non-Executive Directors: David Howell
(Chair of the Remuneration Committee), Bruce Adams, Don Rankin,Lisa Pendlebury and Rebecca Wilson, the majority of
whom are independent.
The Managing Director and other Directors attend meetings as required at the invitation of the Committee Chair.
The Remuneration Committee assesses the appropriateness of both the nature and amount of remuneration paid to the Executive
and Non-Executive KMP on an annual basis by reference to market conditions and current remuneration practices, with the overall
objective of ensuring maximum company performance and shareholder benefit from the retention of a quality Board and Executive
team. The Committee also engages professional support as required to ensure remuneration practices remain in step with the
market as well as the size and nature of the business.
During FY24, the Committee engaged PwC as an independent advisor to the Committee to undertake a review of the STI and LTI
frameworks and provide market practice information and insights. The Committee is satisfied that the advice provided by PwC was
free from undue influence and no remuneration recommendations, as defined by the Corporations Act 2001 (Cth), were provided.
(i) Executive KMP remuneration review process
Managing Director
Remuneration Committee
Board
• Assesses each Senior Executive’s
current year performance based
on actual outcomes relative
to agreed targets, general
performance and market
conditions.
• Provides appropriate
recommendations to the
Remuneration Committee
on incentive payments for
the current year.
• Provides appropriate
recommendations to the
Remuneration Committee of
the amount of fixed remuneration,
appropriate STI targets and
LTI payments for future
measurement periods.
• Reviews the Managing Director’s
recommendations with respect to
the Executive team and provides
appropriate recommendations
to the Board.
• Assesses the Managing Director’s
current year performance and
remuneration outcomes against
agreed targets, formulating a
recommendation to the Board.
• Provides appropriate
recommendations to the Board
of the amount of the Managing
Director’s fixed remuneration,
and appropriate STI and LTI
targets for the future measurement
period, considering general
performance, market conditions
and other external factors.
• Reviews the Remuneration
Committee’s recommendations.
• Approves current year STI
and LTI plans.
• Approves the remuneration
structure for future
measurement periods,
including STI and LTI targets.
60
Annual Report 2024
Hansen Technologies Ltd
(ii) Non-Executive Directors remuneration review process
Non-Executive Directors’ remuneration is governed by resolutions passed at a General Meeting of the Shareholders. During the
AGM held on 23 November 2023, shareholders approved an increase to the Non-Executive Directors’ maximum remuneration
payable from $780,000 to $860,000.
Non-Executive Directors are excluded from participation in the Company’s equity incentive plans.
(iii) Remuneration strategy, structure and market practice
To support the review of the 2024 remuneration framework, the Remuneration Committee has considered detailed and extensive
reports, inputs and benchmarking provided to the Committee in relation to the remuneration strategy, structure, market and
competitor practice. The Committee will supplement this internal advice with external specialist advice from time to time. In April
2024, the Remuneration Committee engaged PwC to provide independent external advice in relation to the remuneration strategy,
structure, market and competitor practices. The Committee considered this advice and adopted the recommendations for the
FY25 remuneration framework. The FY25 incentive plan is outlined in this report.
(b) Remuneration structure (FY24 Plan)
OBJECTIVE
COMPONENT AND FORM
ASSESSMENT
Attract and retain employees
with the skills and experience
associated with the role.
Total Fixed
Remuneration (TFR)
Cash + non-cash
benefits
Fixed
Market data,
individual experience
and performance
Incentivise and reward
achievement of annual
performance objectives
and business outcomes.
Short-term
incentive
Cash
Variable
(‘at-risk’)
Annual performance
based on financial
and non-financial
targets
Align motivations with
shareholder interests and
creation of long-term value.
Long-term
incentive
Performance rights
to shares (3 years)
Continuous
employment, Returns
and EBITDA targets
(i) Total Remuneration Mix
The following diagram sets out the proportional mix of remuneration across the three categories of incentives (TFR, STI and LTI)
for the Managing Director, CEO and KMP, at the target and maximum incentive opportunities:
53%
Remuneration Mix
Other KMP at Maximum
Incentive Opportunity
Other KMP at Target
Incentive Opportunity
MD & CEO at Maximum
Incentive Opportunity
MD & CEO at Target
Incentive Opportunity
STI
Total Fixed Remuneration
LTI
21%
Performance Based
26%
43%
24%
33%
66%
17%
17%
58%
20%
22%
Performance Based
Performance Based
Performance Based
61
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
(ii) Total Fixed Remuneration (TFR)
TFR typically includes base salary and superannuation contributions and may include, at the discretion of the Board, other benefits
such as a motor vehicle (aggregated with associated fringe benefits tax to represent the total employment cost to the Group). TFR
is determined with reference to available market data, the scope of an individual’s role and the qualifications and experience of the
individual, as well as geographic location. TFR is reviewed annually to account for market movements and individual performance
outcomes. See page 74 for a summary of Executive KMP contracts.
FY24 Short-Term Incentive (STI) Plan
Managing Director and CEO
Other KMP
Objective
To incentivise and align rewards attainable by Executive KMP with the achievement of specific
annual objectives of the Group and the creation of shareholder value
Performance Period
Annual aligned with financial year – 1 July 2023 to
30 June 2024
Payment Method
Cash
Target STI Opportunity
40% of TFR
25% of TFR
Maximum STI Opportunity
150% of target STI (54% of TFR)
150% of target STI (33.8% of TFR)
Performance Measures
Financial KPIs (70%):
Budgeted Revenue (50%)
Budgeted EBITDA (50%)
Non-Financial KPIs (30%): Non-financial KPIs are assessed and awarded up to a maximum
of 100% based on specific outcomes.
Gateway:
93% of Budgeted Revenue and Budgeted EBITDA.
How Performance
is Measured
Financial KPIs
(70% total STI)
0%
25%
50%
75%
100%
125%
150%
< 80%
85%
90%
95%
100%
105%
110%
115%
>120%
Financial KPI achievement
% STI awarded
(financial component)
(93% to 97% achievement)
0% to 100% of financial
STI awarded on linear basis
(97% to 103% achievement)
100% of financial
STI awarded
(0% to 93% achievement)
No award
(103% to a maximum
110% achievement)
100% to 150% of
financial STI awarded
on linear basis
Non-financial
KPIs
(30% total STI)
Non-financial KPIs are assessed and awarded up to a maximum
of 100% based on specific outcomes.
62
Annual Report 2024
Hansen Technologies Ltd
How Performance
Measures are Determined
The performance measures (KPIs) selected reflect financial, strategic and operational objectives
relevant to the level and function of the role that are central to achievement of delivering the best
possible outcome over the next 12 months given the current economic environment. Financial
measures selected are measures against which management and the Board assess the short-term
financial performance of the Group.
The selection of non-financial KPIs varies depending on each KMP’s roles and responsibilities within
the Group. These may include achievement of specific strategic projects that drive the best possible
outcome over the next 12 months. Each KMP may have a number of separate non-financial KPIs.
Achievement of each individual’s non-financial KPIs is determined by reference to an assigned
performance rating determined by the Managing Director and the Board at the end of the financial
year in accordance with the process described on page 60.
Achievement of financial KPIs is determined by reference to the Group’s audited accounts for the
measurement period. No payment is made in respect of financial KPIs to any KMP if the target
amount is not met for the Group (set at 93% of budgeted revenue and EBITDA).
The Board retains final discretion over incentive payments to ensure outcomes appropriately reflect
performance and achieve objectives of the executive incentive scheme.
What happens if an
executive leaves?
If an eligible executive ceases employment with the Group during the performance period other
than by way of dismissal or resignation (e.g., death, total and permanent disablement, redundancy,
retrenchment or retirement with prior written consent of the Board) then the cash entitlements
will be awarded on a pro-rata basis according to the eligible period of time served up until the
termination date.
Where termination occurs by way of dismissal or resignation prior to the end of the measurement
period, the cash component may be paid on a pro-rata basis at the Board’s discretion.
If termination of employment occurs for serious misconduct all cash entitlements will be forfeited
and will lapse.
Changes from the
FY23 STI Plan
There have been no changes from the FY23 STI Plan.
(iii) FY24 Long-Term Incentive (LTI) Plan
Managing Director and CEO
Other KMP
Objective
To align the rewards attainable by Executive KMP with the achievement of long-term strategic and
financial objectives of the Group that are directly aligned with increasing shareholder value. Eligibility
to participate in the LTI scheme is determined by the Board and is targeted at senior executives
whose role contributes significantly to the performance of the Group.
Performance Period
3 years; 1 July 2023 to 30 June 2026
Target LTI Opportunity
50% of TFR
25% of TFR
Maximum LTI Opportunity
150% of target opportunity (75% of TFR)
150% of target opportunity (37.5% of TFR)
Payment Method
LTIs are awarded as performance rights on achievement of performance measures. Performance
rights allocated under this plan are determined using “face value methodology” being the 5 trading
day VWAP up to 30 June 2023.
Upon vesting each performance right entitles the eligible executive to be issued with a share.
63
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
How is performance
measured?
Vesting of the LTI awards are subject to the following criteria:
1. Three years of continuous employment with the Group from 1 July 2023 to 30 June 2026.
2. Adherence with appropriate malus provisions over the measurement period.
3. Satisfaction of key hurdles including minimum Revenue CAGR and achievement of minimum
EBITDA margins across the three years.
4. Achievement of the thresholds over the same three-year period as set out below:
Group Organic Revenue
Growth
50%
50%
Group EBITDA Growth
Group Organic Revenue Growth
Group EBITDA Growth
Achievement of minimum
EBITDA Growth targets across
the three-year period.
EBITDA growth drives
efficiency and sustainable
cash flow performance. It
evaluates KMP consistently,
enhances shareholder value,
and supports and encourages
Hansen’s long-term success.
Achievement of minimum Organic
Revenue Growth targets across
the three-year period.
Organic Revenue Growth is a
transparent, metric that drives
sustainable performance. It
motivates executives to prioritise
customer relationships, product
improvement, and operational
efficiency for long-term sustainable
revenue streams.
The proportion of rights that may vest based on both the Organic Revenue Growth and EBITDA
growth targets is determined based on the following vesting schedule:
Percentage achievement against Revenue
and EBITDA targets
Percentage of performance rights that will vest
< 93%
None
> 93% < 97%
0% to 100% on a linear basis
> 97% < 103%
100%
>103% <110%
100% to 150% on a linear basis
The Board has discretion to change the amount awarded if the Board considers the outcome to be
misaligned given the circumstances that prevailed over the relevant measurement period and the
experience of shareholders.
Performance rights will be forfeited if performance conditions are not met.
What happens if an
executive leaves?
If an eligible executive ceases employment with the Group during the performance period other
than by way of dismissal or resignation (e.g., death, total and permanent disablement, redundancy,
retrenchment or retirement with prior written consent of the Board) then the unvested performance
rights will vest on a pro-rata basis according to the eligible period of time served up until the
termination date.
Where termination occurs by way of dismissal or resignation prior to the vesting of the performance
rights, unvested rights may vest on a pro-rata basis according to the eligible period of time served
up until the termination date at the Board’s discretion.
If termination of employment occurs for serious misconduct all vested and unvested rights will be
forfeited and will lapse.
Changes from FY23
LTI Plan
The FY24 LTI scheme replaces the previous two LTI measurements of Relative Total Shareholder
Return (rTSR) and 12.5% Revenue CAGR and introduces two new financial measurement criterion,
achievement of Board defined three-year cumulative organic revenue and EBITDA growth targets.
64
Annual Report 2024
Hansen Technologies Ltd
3. How reward is linked to performance
(a) Performance against STI outcomes
A summary of key measurement criteria of the Group’s financial performance for the financial years ended over the last five financial
years is below.
270.0
280.0
290.0
300.0
310.0
320.0
330.0
340.0
2024
2023
2022
2021
2020
0
20
40
60
80
100
120
140
2024
2023
2022
2021
2020
311.8
301.4
307.7
296.5
334.7
5-year CAGR: 3%
100.7
80.7
119.3
100.0
96.0
5-year CAGR: 4%
Operating Revenue ($m)
EBITDA ($m)
(1)
(1)
(1) Operating revenue and EBITDA results excluding powercloud and underlying adjustments.
The relative weighting of the STI measures and target achieved for FY24 is set out below:
Measures
Weighting
% of Target Achieved
% of STI
Payout(1)
Group Revenue
35%
Minimum
93%
Target
>97% <103%
Maximum
>103% <110%
Achieved (101%)
100%
Group EBITDA
35%
Minimum
93%
Target
>97% <103%
Maximum
>103% <110%
Achieved (95.3%)
49%
Non-Financial
Measures
30%
3
1
2
2
Strategic
initiatives
Growth
initiatives
Operational
Efficiency
Leadership
& Culture
92%
Total
Target
100%
Maximum
150%
Achieved (96%)
76%
(1) STI payout is calculated on a linear basis.
65
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
The table below summarises the STI outcome of the Managing Director, CEO and other KMP:
FY24
FY23
Potential
Target
Opportunity
$
Awarded
70%
Financial
Awarded
30%
Non-Financial
KPIs
Potential
Target
Opportunity
$
Awarded
70%
Financial
Awarded
30%
Non-Financial
KPIs
Andrew Hansen
391,759
66.1%
85.0%
458,006
124.9%
100.0%
Darren Meade
126,099
78.6%
100.0%
130,804
120.1%
100.0%
Graeme Taylor
291,000
66.1%
100.0%
141,231
120.1%
100.0%
Richard English(1)
117,739
78.6%
87.5%
46,508
120.1%
100.0%
(1) Richard English commenced as an Executive KMP on 22 February 2023. The numbers presented above reflect his remuneration from when he commenced his
role as an Executive KMP.
(b) Performance against equity outcomes
All existing incentive plans include equity outcomes that will continue to be measured and reported in the Group’s future
Remuneration Reports.
The following table sets out the different incentive plans with equity outcomes in FY24 and future financial years and their specific
grant details and performance measures:
Grant date
Plan Security Performance measure/s
Sect.
3 ref.
Status
1 Jul 2020
FY21 Right
2-year cont. employment after
achieving FY21 STI measures(1)
(b)(i)
15 Sep 2021
FY22 Right
Group Revenue, rTSR, 3-yr cont.
employment
(b)(ii)
15 Sep 2022
FY23 Right
Group Revenue, rTSR, 3-yr cont.
employment
(b)(iii),
(b)(v)
1 Jul 2023
FY24 Right
Group Organic Revenue, Group
EBITDA Growth cont. employment
(b)(iv),
(b)(v)
2021
and prior
2022
2023
2024
2025
2026
(1) Applies to all KMP, except for the CFO (KMP).
Key:
Measurement period.
135% of the STI measure-linked rights vested on 30 June 2023 and exercised on 14 August 2023.
LTI performance rights granted on 15 September 2021 have not exceeded the specific annual financial KPIs and did not vest
on 30 June 2024 and will be cancelled in due course.
Yet to vest.
66
Annual Report 2024
Hansen Technologies Ltd
(i) Performance against LTI plan measures (FY22 LTI plans)
A summary of key measurement criteria of the Group’s performance relevant for assessing shareholder value creation over the last
four financial years is shown below:
260.0
270.0
280.0
290.0
300.0
310.0
320.0
330.0
340.0
350.0
360.0
2024
2023
2022
2021
2020
311.8
301.4
307.7
296.5
353.1
5-year CAGR: 4%
Operating Revenue ($m)
The chart below highlights the share price performance of Hansen relative to S&P/ASX Small Ordinaries Index for the previous
four years:
July 2021
July 2022
July 2023
July 2024
110%
90%
80%
70%
60%
50%
HSN
S&P/ASX Small Ordinaries (AUD)
100%
Performance outcomes against FY22 LTI plan measures
The relative weighting of FY22 LTI measures and percentage of performance rights vested is set out below:
Measures
Weighting
% of Target Achieved
% of Performance Rights Vested
12.5% revenue
CAGR over 3 years
50%
Minimum
93%
Target
>97% <103%
Maximum
>103% <110%
Achieved (33%)
0%
rTSR
50%
Minimum
50th percentile
Target
>50th <75th
percentile
Maximum
>75th percentile
Achieved (29th percentile)
0%
As indicated above, the performance rights granted under the FY22 LTI plan have not exceeded the required specific annual
financial KPIs. Therefore, the performance rights did not vest on 30 June 2024 and will be cancelled in due course.
67
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
(ii) Performance against FY23 LTI plan measures
Performance rights granted in FY23 have performance conditions attached that will be measured over three years. Assessment and
vesting (where conditions are attached) will occur after the completion of FY25.
(iii) Performance against FY24 LTI plan measures
Performance rights granted in FY24 have performance conditions attached that will be measured over three years. Assessment and
vesting (where conditions are attached) will occur after the completion of FY26.
(iv) Performance against FY25 LTI plan measures
Performance rights granted in FY25 have performance conditions attached that will be measured over three years. Assessment and
vesting (where conditions are attached) will occur after the completion of FY27.
(v) Performance rights granted in FY24
The table below sets out the value of LTI performance rights granted in the FY23 and FY24 LTI plans.
FY24
FY23
Value granted(1) $
Andrew Hansen(2)
–
353,337
Darren Meade
117,528
83,088
Graeme Taylor
339,029
89,711
Richard English
109,738
22,152
(1) Represents the value of performance rights at grant date, calculated in accordance with AASB 2 Share-based Payment. The fair value of the rights has been
determined by an independent external valuation expert in accordance with Australian Accounting Standards. The fair value of the LTI rights was based on
Monte Carlo simulation option pricing model for the TSR component and BSOPM for the Group Revenue component. Note 17(b) to the Group’s financial
statements outlines the valuation methodology and key inputs and assumptions to the valuation in greater detail.
(2) The resolution to grant Andrew Hansen’s FY24 LTI performance rights did not pass during the Company’s Annual General Meeting on 23 November 2023.
The Board intends to grant Andrew Hansen additional cash remuneration in lieu of the performance rights, subject to the same vesting conditions being achieved.
4. Remuneration details: Executive KMP
Statutory remuneration details
Details of Executive KMP remuneration for the 2024 and 2023 financial years are set out in the table below:
Fixed
Remuneration
Variable
Remuneration
Total
Executive
KMP
Year
Cash
Salary
$
Super
$
Non-
monetary
benefits
$
Annual &
long
service
leave
$
Total
$
STI(1)
awarded
$
LTI(2)
fair value
$
Other
$
Total
$
Perform-
ance
related
%
Andrew
Hansen
2024
946,274
27,500
2,459
23,521
999,754
281,117 393,875(3)
– 1,674,746
40%
2023
930,003
27,500
2,342
(33,294)
926,551
649,876
241,735
– 1,818,162
49%
Darren
Meade
2024
489,859
27,500
–
9,390
526,749
107,217
96,020
–
729,986
28%
2023
441,028
27,500
2,791
(5,466)
465,853
173,369
56,844
–
696,066
33%
Graeme
Taylor
2024
726,636
27,500
–
41,905
796,041
221,910
174,385 595,029(4) 1,787,365
55%
2023
478,799
27,500
26,973
(37,885)
495,387
182,024
61,376
–
738,787
33%
Richard
English
2024
454,329
27,500
–
10,102
491,931
97,787
78,859
–
668,577
26%
2023(5)
176,595
272
–
(1,114)
175,753
44,512
21,435
–
241,700
27%
Total
2024
2,617,098
110,000
2,459
84,918 2,814,475
708,031
743,139
595,029 4,860,674
42%
2023
2,026,425
82,772
32,106
(77,759) 2,063,544 1,049,781
381,390
– 3,494,715
41%
(1) Represents STI awarded and accrued in relation to actual performance during the 2024 and 2023 financial years. FY23 STI includes performance rights granted
as remuneration that are valued at grant date in accordance with AASB 2 Share-based Payment and are amortised over the vesting period.
(2) Performance rights granted as remuneration are valued at grant date in accordance with AASB 2 Share-based Payment and are amortised over the vesting period.
(3) The resolution to grant Andrew Hansen’s FY24 LTI performance rights did not pass during the Company’s Annual General Meeting on 23 November 2023.
As a result, in lieu of performance rights, Andrew Hansen will be granted cash remuneration, subject to the same vesting conditions being achieved.
(4) A total of $595,029 was accrued as additional termination benefits as at 30 June 2024, which includes Board discretion as a good leaver. All terminations
benefits will be paid out on 30 September 2024. Excluding these termination benefits, the performance related % would have been 33%.
(5) Richard English commenced as an Executive KMP on 22 February 2023. The numbers presented above reflect his remuneration from when he commenced
his role as an Executive KMP.
68
Annual Report 2024
Hansen Technologies Ltd
(b) Performance rights awarded, vested and lapsed during the year
Performance rights issued under the Group’s FY24 LTI plan during the year are subject to the service and performance criteria
as described on pages 63-64.
The following table sets out details of performance rights granted to executives:
Name and grant date
Plan
Type
Opening
balance
Granted
Vested, exercised
and other changes
Closing balance
at 30 June 2024
Andrew Hansen
1 Jul 2023*
FY24
LTI
–
–
–
–
15 Sep 2022
FY23
LTI
94,475
–
–
94,475
15 Sep 2021
FY22
LTI(2)
74,523
–
–
74,523
1 Jul 2020
FY21
STI(1)
213,189
–
(213,189)
–
Sub-total
382,187
–
(213,189)
168,998
Graeme Taylor
1 Jul 2023
FY24
LTI
–
70,631
–
70,631
15 Sep 2022
FY23
LTI
23,987
–
–
23,987
15 Sep 2021
FY22
LTI(2)
18,921
–
–
18,921
1 Jul 2020
FY21
STI(1)
45,325
–
(45,325)
–
Sub-total
88,233
70,631
(45,325)
113,539(3)
Darren Meade
1 Jul 2023
FY24
LTI
–
24,485
–
24,485
15 Sep 2022
FY23
LTI
22,216
–
–
22,216
15 Sep 2021
FY22
LTI(2)
17,524
–
–
17,524
1 Jul 2020
FY21
STI(1)
47,295
–
(47,295)
–
87,035
24,485
(47,295)
64,225
Richard English
1 Jul 2023
FY24
LTI
–
22,862
–
22,862
15 Sep 2022
FY23
LTI
19,925
–
–
19,925
15 Sep 2021
FY22
LTI(2)
10,485
–
–
10,485
1 Jul 2020
FY21
LTI
20,408
–
(20,408)
–
Sub-total
50,818
22,862
(20,408)
53,272
Sub-total
STI(1)
305,809
–
(305,809)
–
Sub-total
LTI
302,464
117,978
(20,408)
400,034
Grand Total
608,273
117,978
(326,217)
400,034
*
The resolution to grant Andrew Hansen’s FY24 LTI performance rights did not pass during the Company’s Annual General Meeting on 23 November 2023.
The Board intends to grant Andrew Hansen additional cash remuneration in lieu of the performance rights, subject to the same vesting conditions being achieved.
(1) STI performance rights granted on 1 July 2020 represents 56% and 50% of the total short-term incentives awarded to the Managing Director/CEO and the rest
of the KMP respectively on achievement of specific annual financial and non-financial KPIs. The performance rights have exceeded the required specific annual
financial and non-financial KPIs and will vest on an accelerated basis, subject to a two-year deferral period paying 135% of the entitlement on 30 June 2023.
The rights have been subsequently exercised on 14 August 2023.
(2) LTI performance rights granted on 15 September 2021 have not exceeded the required specific annual financial KPIs and did not vest on 30 June 2024
and will be cancelled in due course.
(3) Graeme Taylor ceased to be a KMP effective 30 June 2024. In relation to his rights that have yet to vest, the Board has exercised its discretionary power under
the Employee Rights Plan and have allowed these rights to be retained, and to vest.
69
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
The terms and conditions of each grant of rights affecting the remuneration in the current or future reporting period are as follows:
Grant date
Vesting date
Type
Value per right
at grant date
Performance
achieved
% Vested
Number of
Rights on
30 June 2024
15 Sep 2021
30 Jun 2024
LTI(1)
$4.99
0%
0%
121,453
15 Sep 2022
30 Jun 2025
LTI
$3.74
–
–
160,603
1 Jul 2023
30 Jun 2026
LTI
$4.80
–
–
117,978
(1) LTI performance rights granted on 15 September 2021 have not exceeded the required specific annual financial KPIs and did not vest on 30 June 2024 and
will be cancelled in due course.
5. FY25 Incentive Plan
(a) Short-term incentive plan
Global CEO and Managing Director
Other KMP
Objective
To incentivise and align rewards attainable by Executive KMP with the achievement of specific
annual objectives of the Group and the creation of shareholder value.
Performance Period
Annual aligned with financial year – 1 July 2024 to 30 June 2025.
Payment Method
Cash
Target STI Opportunity
40% of TFR
25% of TFR
Maximum STI Opportunity
150% of target STI (54% of TFR)
150% of target STI (33.8% of TFR)
How is it paid?
Annual cash entitlement on achievement of specific annual financial and non-financial KPIs.
Performance Measures
Financial KPIs (70%):
Budgeted Revenue (50%)
Budgeted Underlying Cash EBITDA (50%)
Non-Financial KPIs (30%): Non-financial KPIs varies depending on each KMP’s roles and
responsibilities within the Group. These objectives are determined
by the Managing Director and the Board in accordance with the
process set out on page 60. Disclosure of performance against
key non-financial KPIs for the FY25 STI plan will be within the
FY25 Annual Report.
Gateway:
93% of Budgeted Revenue and Budgeted Underlying Cash EBITDA,
minimum Underlying Cash EBITDA margin threshold, completion
of mandatory compliance training requirements.
How Performance
is Measured
Financial KPIs
(70% total STI)
0%
25%
50%
75%
100%
125%
150%
< 80%
85%
90%
95%
100%
105%
110%
115%
>120%
Financial KPI achievement
% STI awarded
(financial component)
(93% to 97% achievement)
0% to 100% of financial
STI awarded on linear basis
(97% to 103% achievement)
100% of financial
STI awarded
(0% to 93% achievement)
No award
(103% to a maximum
110% achievement)
100% to 150% of
financial STI awarded
on linear basis
Non-financial
KPIs
(30% total STI)
Non-financial KPIs are assessed and awarded up to a maximum
of 100% based on specific outcomes.
70
Annual Report 2024
Hansen Technologies Ltd
How Performance
Measures are Determined
The performance measures (KPIs) selected reflect financial, strategic and operational objectives
relevant to the level and function of the role that are central to achievement of delivering the best
possible outcome over the next 12 months given the current economic environment. Financial
measures selected are measures against which management and the Board assess the short-term
financial performance of the Group.
The selection of non-financial KPIs varies depending on each KMP’s roles and responsibilities within
the Group. These may include achievement of specific strategic projects that drive the best possible
outcome over the next 12 months. Each KMP may have a number of separate non-financial KPIs.
Achievement of each individual’s non-financial KPIs is determined by reference to an assigned
performance rating determined by the Managing Director and the Board at the end of the financial
year in accordance with the process described on page 60. Disclosure of performance against
key non-financial KPIs for the FY25 STI plan will be within the FY25 Annual Report.
The Board retains final discretion over incentive payments to ensure outcomes appropriately reflect
performance and achieve objectives of the executive incentive scheme.
What Happens if an
Executive Leaves
If an eligible executive ceases employment with the Group during the performance period other
than by way of dismissal or resignation (e.g., death, total and permanent disablement, redundancy,
retrenchment or retirement with prior written consent of the Board) then the cash entitlements
will be awarded on a pro-rata basis according to the eligible period of time served up until the
termination date.
Where termination occurs by way of dismissal or resignation prior to the end of the measurement
period, the cash component may be paid on a pro-rata basis at the Board’s discretion.
If termination of employment occurs for serious misconduct all vested and unvested rights will be
forfeited and will lapse.
Changes from the
FY24 STI Plan
The FY25 STI plan replaces the Budgeted EBITDA measure with a budgeted Underlying
Cash EBITDA measure and introduces a minimum Underlying Cash EBITDA margin gateway.
Underlying Cash EBITDA represents Underlying EBITDA less capitalised development costs and
is an important metric to incentivise management to make investment decisions aligned with an
appropriate return on investment. The FY25 STI plan also introduces a compliance gateway related
to the completion of mandatory compliance training by individual KMP.
(b) Long-term incentive plan
Global CEO and Managing Director
Other KMP
Objective
To align the rewards attainable by Executive KMP with the achievement of long-term strategic and
financial objectives of the Group that are directly aligned with increasing shareholder value. Eligibility
to participate in the LTI scheme is determined by the Board and is targeted at senior executives
whose role contributes significantly to the performance of the Group.
Performance Period
3 years; 1 July 2024 to 30 June 2027
Target LTI Opportunity
50% of TFR
25% of TFR
Maximum LTI Opportunity
150% of target opportunity (75% of TFR)
150% of target opportunity (37.5% of TFR)
Payment Method
LTIs are awarded as performance rights on achievement of performance measures. Performance
rights allocated under this plan are determined using “face value methodology” being the 5 trading
day VWAP up to 30 June 2024.
Upon vesting each performance right entitles the eligible executive to be issued with a share.
Performance Conditions
The performance rights are split into three tranches.
Tranche 1
Achievement of minimum Organic Revenue Growth
targets across the three-year period.
25% weighting
Tranche 2
Achievement of minimum EBITDA Growth targets
across the three-year period.
25% weighting
Tranche 3
Absolute TSR Growth
50% weighting
71
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
Performance Measures
and Vesting
Vesting of the LTI awards are subject to the following criteria:
1. Three years of continuous employment with the Group from 1 July 2024 to 30 June 2027.
2. Adherence with appropriate malus provisions over the measurement period.
3. Satisfaction of the following key hurdles including over the Performance Period:
Tranche 1 & 2 – Group Organic Revenue & Group EBITDA Performance Rights
The proportion of rights that may vest based on both the Organic Revenue and EBITDA targets is
determined based on the following vesting schedule. The Group revenue and EBITDA targets will
be disclosed in the FY27 Annual Report, on a retrospective basis:
Percentage achievement against
Group Revenue and EBITDA Targets
Percentage of performance rights that will vest
< 93%
None
> 93% < 97%
0% to 100% on a linear basis
> 97% < 103%
100%
>103% <110%
100% to 150% on a linear basis
Gateways: To ensure alignment with wider market expectations:
• Vesting of Tranche 1 performance rights is subject to the achievement of a minimum, Group
Revenue 3-year CAGR.
• Vesting of Tranche 2 performance rights is subject to the achievement of a minimum average
3-year Underlying EBITDA margin. The Board has discretion for the impact of acquisitions
or material one-off adjustments.
Tranche 3 – Absolute TSR Growth Performance Rights
The proportion of rights that may vest based on the Absolute TSR Growth target is determined
based on the following vesting schedule. The starting TSR is based on the 5-day VWAP of the
Group’s share price up to 30 June 2024:
Absolute TSR CAGR
Percentage of performance rights that will vest
< 7%
None
> 7% < 12%
50% to 150% on a linear basis
The Board has discretion to change the amount awarded if the Board considers the outcome to be
misaligned given the circumstances that prevailed over the relevant measurement period and the
experience of shareholders. Performance rights will be forfeited if performance conditions are not met.
72
Annual Report 2024
Hansen Technologies Ltd
How Performance
Measures are Determined
Group Organic Revenue Cumulative Performance: Measurement of 3-year cumulative organic
revenue performance relative to agreed targets.
Organic Revenue Growth is a transparent, metric that drives sustainable performance. It motivates
executives to prioritise customer relationships, product improvement, and operational efficiency
for long-term sustainable revenue streams. It also enables participants to focus on stable growth
that is within their control rather than growth impacted by M&A activity. If the year prior to the
commencement of the measurement period includes an acquisition, the base revenue year to
establish the CAGR will include annualised acquisition revenues to establish the group revenue base.
Group EBITDA Cumulative Performance: Measurement of 3-year cumulative EBITDA
performance relative to agreed targets.
EBITDA growth drives efficiency and sustainable cash flow performance. It evaluates KMP
consistently, enhances shareholder value, and supports and encourages Hansen’s long-term
success. A minimum EBITDA margin gateway provides appropriate controls to ensure
sustainable growth.
Absolute TSR Growth: Achievement of minimum absolute TSR growth target across the
three-year period.
Absolute TSR growth targets align executive reward with what the Board considers to be acceptable
levels of return to shareholders over the performance period. An absolute TSR metric ensures that
rewards are directly aligned with shareholder returns over the vesting period. It removes uncertainty
associated with short-term fluctuations from peer companies that are beyond the control of KMP,
thus ensuring KMP remain focused on business fundamentals and are effectively motivated to
deliver sustainable value to shareholders.
What happens if an
executive leaves?
If an eligible executive ceases employment with the Group during the performance period other
than by way of dismissal or resignation (e.g., death, total and permanent disablement, redundancy,
retrenchment or retirement with prior written consent of the Board) then the unvested performance
rights will vest on a pro-rata basis according to the eligible period of time served up until the
termination date.
Where termination occurs by way of dismissal or resignation prior to the vesting of the performance
rights, unvested rights may vest on a pro-rata basis according to the eligible period of time served
up until the termination date at the Board’s discretion.
If termination of employment occurs for serious misconduct all vested and unvested rights will be
forfeited and will lapse.
Changes from the
FY24 LTI Plan
The FY25 LTI scheme introduces an absolute TSR measure and retains the EBITDA and organic
revenue growth targets with a 3-year cumulative organic revenue and EBITDA performance relative
to agreed targets.
3-year Cumulative Organic Revenue
FY25 LTI Allocation
3-year Cumulative EBITDA
Absolute TSR CAGR
50%
25%
25%
Organic Revenue Growth
FY24 LTI Allocation
EBITDA Growth
50%
50%
73
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
6. Contractual arrangements with Executive KMP
Remuneration and other conditions of employment are set out in each executive’s employment contract. The key elements of these
employment contracts are summarised below:
Component
Approach for Managing Director and CEO
Approach for other Executive KMP
Total Fixed Remuneration
Range between $790,000 and $1,000,000
Range between $490,000 and $520,000
Contract duration
Ongoing
Ongoing
Notice by individual/
company
6 months
1 – 3 months
Termination of employment
(without cause)
The Board has discretion to allow some or all STI entitlements to be paid out on a pro-rata basis
aligned to time, where termination occurs by way of resignation or dismissal (e.g., death, total
and permanent disablement, redundancy, retrenchment or retirement with prior written consent
of the Board).
In other forms of without cause terminations, the STI will be reduced proportionately to reflect the
portion of the Measurement Period, but there is no other impact to the executive’s entitlement.
The Board has discretion to allow unvested LTIs to vest on a pro-rata basis aligned to time.
Where this discretion is not exercised, such unvested rights will lapse.
Termination of employment
(with cause)
STI is forfeited.
All unvested LTIs are forfeited.
All vested but unexercised LTIs are forfeited.
7. Remuneration details: Non-Executive KMP
Non-Executive Directors enter into service agreements through a letter of appointment. Non-Executive Director fees are determined
with reference to market levels and the need to attract high quality Directors.
Non-Executive Directors do not receive any variable or performance-based remuneration.
The Non-Executive Director fee pool currently has a maximum value of $860,000 per annum, as approved by shareholders
at the 2023 AGM and received strong support with a vote of 97.14% in favour.
The annual fees provided to Non-Executive Directors, inclusive of superannuation, are shown below:
2024
($)
2023
($)
Board fees
Chairperson
165,069
158,076
Other Non-Executive Directors
94,244
89,485
Committee fees
Audit and Risk Committee – chair
9,041
9,000
Audit and Risk Committee – member
5,023
5,000
Remuneration Committee – chair
9,041
9,000
Remuneration Committee – member
5,023
5,000
74
Annual Report 2024
Hansen Technologies Ltd
Non-Executive Director
Year
Salary and Fees
($)
Super
($)
Total
($)
David Trude
2024
148,711
16,358
165,069
2023
142,991
15,014
158,005
Bruce Adams
2024
89,430
9,837
99,267
2023
85,718
9,000
94,718
Lisa Pendlebury
2024
93,955
10,335
104,290
2023
92,649
9,728
102,377
Don Rankin
2024
97,575
10,733
108,308
2023
94,309
9,902
104,211
David Osborne
2024
89,430
9,837
99,267
2023
85,718
9,000
94,718
David Howell(1)
2024
97,575
10,733
108,308
2023(1)
139,558
14,654
154,212
Rebecca Wilson(2)
2024
21,879
2,407
24,286
2023
–
–
–
Total
2024
638,555
70,240
708,795
2023
640,943
67,298
708,241
(1) David Howell was paid an extra $30,000 for consulting services performed for the Company in FY23.
(2) Rebecca Wilson was appointed as a Non-Executive Director on 28 March 2024.
8. Share-based remuneration disclosures
(a) Shareholdings of KMP
The number of shares in the Company held by each Non-Executive Director and Executive KMP during the year, including their
related parties, is summarised below:
Balance
30 June 2023
Received during the year on
exercise of Performance rights
Other changes
during the year
Balance
30 June 2024
Non-Executive Directors
David Trude
111,678
–
(7,877)
103,801
Bruce Adams(1)
34,891,417
–
(7,000,000)
27,891,417
Lisa Pendlebury
13,869
–
–
13,869
Don Rankin
25,000
–
–
25,000
David Osborne(1)
35,125,448
–
(7,000,000)
28,125,448
David Howell
43,805
–
–
43,805
Executive KMP
Andrew Hansen(1)
35,450,073
213,189
(7,000,000)
28,663,262
Graeme Taylor
287,403
45,325
3,525
336,253
Darren Meade
89,775
47,295
–
137,070
Richard English
29,599
20,408
1,448
51,455
Joint interest(1)
(69,478,226)
–
14,000,000
(55,478,226)
Total
36,589,841
326,217
(7,002,904)
29,913,154
(1) Each of Bruce Adams, David Osborne and Andrew Hansen has a joint interest in a single parcel of 27,739,113 shares as at the date of this report.
75
Annual Report 2024
Hansen Technologies Ltd
REMUNERATION REPORT CONTINUED
(b) Shares issued on exercise of performance rights
On 24 June 2022, the Group established the Hansen Technologies Limited Employee Share Plan Trust (Trust) to hold shares for
satisfaction of rights under existing future equity awards plans. The establishment of the Trust impacts FY20 LTI and STI equity
awards plans onwards.
(i) FY21 LTI and STI plan
On 30 June 2023, the FY21 plan vested. The performance rights were subsequently exercised on 14 August 2023. A total of
326,217 shares were issued to the Executive KMP on that date.
The share price as at the exercise date, 14 August 2023 was $5.30 per share.
(ii) FY22 LTI plan
On 30 June 2024, the FY22 plan did not vest as the performance rights granted have not exceeded the required measurement
criteria and will be cancelled in due course.
9. Other transactions with KMP
Rental agreements with the Managing Director
The Group rents an apartment in New York City, USA, on an as-required basis at a rate favourable to the Group. The apartment is
owned by the Managing Director. The terms and conditions of the lease are no more favourable than those available, or which might
reasonably be expected to be available, from others on an arm’s length basis. Total rental payments during the 2024 financial year
related to these arrangements were $2,670.
The terms and conditions of the current lease arrangements remain unchanged during the financial year.
10. Employee Share Trust
Hansen Technologies Limited Employee Share Plan Trust (the Trust) was established on 24 June 2022 as a sole purpose trust for
the purpose of holding shares for the satisfaction of rights under existing and future equity awards plans. The Trust provides Hansen
with greater flexibility to accommodate the incentive arrangements of Hansen both now and into the future as the Group continues
to expand its operations. The Trust will help manage the capital requirements, in that the Trust can use the contributions made by
Hansen either to acquire shares in Hansen on market, or alternatively to subscribe for new shares in Hansen. In addition, the Trust
provides an arm’s length vehicle through which shares in Hansen can be acquired and held in Hansen on behalf of employees and
allows Hansen to satisfy corporations law requirements relating to companies dealing in their own shares, as well as assisting with
management of insider trading restrictions. Pacific Custodians Pty Limited, an independent third party, is the Trustee of the Trust,
and will operate the Trust in accordance with Hansen Technologies Limited Employee Share Plan Trust Deed.
Signed in accordance with a resolution of the Directors.
David Trude
Andrew Hansen
Chair
Global CEO and Managing Director
Melbourne
21 August 2024
76
Annual Report 2024
Hansen Technologies Ltd
AUDITOR’S INDEPENDENCE DECLARATION
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RSM Australia Partners
Level 27, 120 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Hansen Technologies Limited and its controlled entities for
the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
M PARAMESWARAN
Partner
Dated: 21 August 2024
Melbourne, Victoria
77
Annual Report 2024
Hansen Technologies Ltd
FINANCIAL REPORT
78
Annual Report 2024
Hansen Technologies Ltd
Annual Report 2024
78
Hansen Technologies Ltd
Consolidated Statement of Comprehensive Income
79
Consolidated Statement of Financial Position
80
Consolidated Statement of Changes in Equity
81
Consolidated Statement of Cash Flows
82
Notes to the Financial Statements
83
Section A: Basis of preparation
83
1.
Basis of preparation
83
Section B: Performance
85
2.
Segment information
85
3.
Revenue and other income
89
4.
Separately disclosed items
93
5.
Profit from continuing operations
95
6.
Income tax
96
7.
Earnings per share
99
Section C: Working Capital and Operating Assets 100
8.
Cash and cash equivalents
100
9.
Receivables
101
10. Other assets
102
11. Plant, equipment and leasehold improvements
103
12. Intangible assets
104
13. Leases
107
14. Payables
112
15. Provisions
113
Section D: People
114
16. Employee benefits
114
17. Share-based payments
116
Section E: Capital and Financial Risk Management 120
18. Financial risk management
120
19. Borrowings
123
20. Contributed capital
125
21. Dividends
126
22. Reserves and retained earnings
126
23. Commitments and contingencies
127
Section F: Group Structure
128
24. Parent entity information
128
25. Business combinations (powercloud)
130
Section G: Other Disclosures
133
26. Related party disclosures
133
27. Auditor’s remuneration
135
28. Deed of cross guarantee
136
29. New and amended accounting
standards and interpretations
138
30. Subsequent events
139
Consolidated Entity Disclosure Statement
140
Directors’ Declaration
141
Independent Auditor’s Report
142
ASX Shareholder Information
147
Corporate Directory
149
Note
2024
$’000
2023
$’000
Operating revenue
3
353,106
311,766
Other income
3
2,328
3,458
Total revenue and other income
355,434
315,224
Employee benefit expenses
5
(209,228)
(166,878)
Depreciation expense
5
(12,218)
(11,031)
Amortisation expense
5
(37,254)
(33,269)
Property and operating rental expenses
5
(3,341)
(3,678)
Contractor and consultant expenses
(5,910)
(5,928)
Software licence expenses
(4,008)
(2,697)
Hardware and software expenses
(29,872)
(21,373)
Travel expenses
(3,322)
(2,257)
Communication expenses
(2,005)
(1,847)
Professional expenses
(6,724)
(5,158)
Finance costs on borrowings
5
(3,786)
(4,115)
Finance costs on lease liabilities
5
(1,019)
(772)
Foreign exchange (losses)/gains
5
(912)
2,741
Other expenses
(5,151)
(4,637)
Total expenses
(324,750)
(260,899)
Profit before income tax expense
30,684
54,325
Income tax expense
6(a)
(9,620)
(11,530)
Net profit after income tax expense
21,064
42,795
Other comprehensive expense
Items that may be reclassified subsequently to profit and loss
Exchange differences on translation of foreign entities, net of tax
22(a)
(5,552)
(277)
Other comprehensive expense for the year, net of tax
(5,552)
(277)
Total comprehensive income for the year
15,512
42,518
Basic earnings (cents) per share attributable to ordinary equity holders
of the Company
7
10.4
21.1
Diluted earnings (cents) per share attributable to ordinary equity holders
of the Company
7
10.3
20.8
The consolidated statement of comprehensive income is to be read in conjunction with the notes to the financial statements set out
on pages 83 to 139.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
79
Annual Report 2024
Hansen Technologies Ltd
Note
2024
$’000
2023
$’000
Current assets
Cash and cash equivalents
8
46,021
54,279
Receivables
9
62,829
57,152
Accrued revenue
3(a)(ii)
36,508
28,319
Other current assets
10
7,640
7,303
Total current assets
152,998
147,053
Non-current assets
Plant, equipment & leasehold improvements
11
15,710
15,051
Intangible assets
12
373,409
332,820
Right-of-use assets
13(a)
16,385
13,648
Deferred tax assets
6(b)
7,013
6,581
Other non-current assets
10
1,317
1,434
Total non-current assets
413,834
369,534
Total assets
566,832
516,587
Current liabilities
Payables
14
31,534
25,028
Lease liabilities
13(b,e)
4,889
5,434
Current tax payable
3,727
509
Provisions
15, 16
30,208
14,127
Unearned revenue
3(a)(ii)
38,837
32,854
Total current liabilities
109,195
77,952
Non-current liabilities
Deferred tax liabilities
6(b)
33,308
33,960
Borrowings
19
70,221
54,309
Lease liabilities
13(b,e)
14,240
9,563
Provisions
15, 16
915
409
Unearned revenue
3(a)(ii)
1,808
1,514
Total non-current liabilities
120,492
99,755
Total liabilities
229,687
177,707
Net assets
337,145
338,880
Equity
Share capital
20(a)
150,599
148,688
Foreign currency translation reserve
22(a)
1,707
7,259
Share-based payments reserve
22(b)
13,440
12,285
Retained earnings
22(c)
171,399
170,648
Total equity
337,145
338,880
The consolidated statement of financial position is to be read in conjunction with the notes to the financial statements set out on
pages 83 to 139.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
80
Annual Report 2024
Hansen Technologies Ltd
Note
Contributed
Equity
$’000
Reserves
$’000
Retained
Earnings
$’000
Total Equity
$’000
Balance as at 1 July 2023
148,688
19,544
170,648
338,880
Net profit after income tax expense
for the year
22(c)
–
–
21,064
21,064
Exchange differences on translation
of foreign entities, net of tax
22(a)
–
(5,552)
–
(5,552)
Total comprehensive income
for the year
–
(5,552)
21,064
15,512
Transactions with owners
in their capacity as owners:
Share-based payment expense –
performance rights
17(c)
–
1,080
–
1,080
Tax associated with employee
share-based plans
6(b)(iv)
–
75
–
75
Equity issued under dividend
reinvestment plan
20(b)
1,911
–
1,911
Dividends declared
22(c)
–
–
(20,313)
(20,313)
Total transactions with owners in their
capacity as owners
1,911
1,155
(20,313)
(17,247)
Balance as at 30 June 2024
20(a), 22
150,599
15,147
171,399
337,145
Note
Contributed
Equity
$’000
Reserves
$’000
Retained
Earnings
$’000
Total Equity
$’000
Balance as at 1 July 2022
146,857
18,165
148,086
313,108
Net profit after income tax expense
for the year
22(c)
–
–
42,795
42,795
Exchange differences on translation
of foreign entities, net of tax
22(a)
–
(277)
–
(277)
Total comprehensive income
for the year
–
(277)
42,795
42,518
Transactions with owners
in their capacity as owners:
Share-based payment expense –
performance rights
17(c)
–
1,528
–
1,528
Tax associated with employee
share-based plans
6(b)(iv)
–
128
–
128
Equity issued under dividend
reinvestment plan
20(b)
1,831
–
–
1,831
Dividends declared
22(c)
–
–
(20,233)
(20,233)
Total transactions with owners in their
capacity as owners
1,831
1,656
(20,233)
(16,746)
Balance as at 30 June 2023
20(a), 22
148,688
19,544
170,648
338,880
The consolidated statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on
pages 83 to 139.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
81
Annual Report 2024
Hansen Technologies Ltd
Note
2024
$’000
2023
$’000
Cash flows from operating activities
Receipts from customers
382,879
331,672
Payments to suppliers and employees
(304,441)
(240,116)
Interest received
3
227
110
Finance costs on borrowings
5
(3,501)
(3,964)
Finance costs on lease liabilities
5,13(b)
(1,019)
(772)
Transaction costs relating to the acquisition of a subsidiary
4
(519)
–
Income tax paid
(14,520)
(8,108)
Net cash inflow from operating activities
8(a)
59,106
78,822
Cash flows from investing activities
Payment for acquisition of business
25
(38,303)
–
Payments for plant, equipment and leasehold improvements
11
(5,060)
(4,757)
Payments for capitalised software development costs
12
(15,461)
(21,140)
Net cash outflow from investing activities
(58,824)
(25,897)
Cash flows from financing activities
Proceeds from borrowings
19(a)
55,270
–
Repayment of borrowings
19(a)
(37,334)
(33,615)
Establishment of loan fees
19(a)
(205)
(201)
Repayment of lease liabilities
13(d)
(5,983)
(6,188)
Dividends paid, net of dividend re-investment
21
(18,403)
(18,403)
Net cash outflow from financing activities
(6,655)
(58,407)
Net decrease in cash and cash equivalents
(6,373)
(5,482)
Cash and cash equivalents at beginning of year
54,279
59,631
Effects of exchange rate changes on cash and cash equivalents
(1,885)
130
Cash and cash equivalents at end of the year
8
46,021
54,279
The consolidated statement of cash flows is to be read in conjunction with the notes to the financial statements set out on
pages 83 to 139.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
82
Annual Report 2024
Hansen Technologies Ltd
SECTION A: BASIS OF PREPARATION
This section describes the basis in which the Group’s financial statements are prepared. Specific accounting policies are
described in the note to which they relate. The accounting policies have been consistently applied, unless otherwise stated.
1. Basis of preparation
(a) Basis of preparation of the Financial Report
This Financial Report is a general purpose Financial Report that has been prepared in accordance with Australian Accounting
Standards, Interpretations and other applicable authoritative pronouncements of the Australian Accounting Standards Board
and the Corporations Act 2001.
The consolidated financial statements for Hansen Technologies Limited (“the Company”) as at, and for, the year-ended 30 June 2024
(“the annual financial report”) comprise of the financial statements of the Company and its controlled entities (collectively, the Group).
The Company is a company limited by shares, incorporated and domiciled in Australia. The address of the Company’s registered
office and principal place of business is Level 13, 31 Queen Street Victoria 3000 Australia. The Company is a for-profit entity for the
purposes of preparing the Group’s financial statements.
This Financial Report was authorised for issue by the Directors on 21 August 2024.
The Group’s consolidated financial statements have been presented in a streamlined manner to simplify the information disclosed
and to make it more relevant for users. Similar notes have been grouped into sections with relevant accounting policies, judgements
and estimate disclosures incorporated within the notes to which they relate.
Compliance with IFRS
The Group’s consolidated financial statements comply with the International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
Historical cost convention
The Financial Report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain
classes of assets and liabilities as described in the accounting policies.
Material accounting estimates and judgements
The preparation of the Financial Report requires the use of certain estimates and judgements in applying the Group’s accounting
policies. The Group makes certain estimates and assumptions concerning the future which, by definition, will seldom represent actual
results. Estimates and assumptions based on future events have a material inherent risk and where future events are not as anticipated,
there could be a material impact on the carrying amounts of the assets and liabilities discussed in each of the affected notes.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024
83
Annual Report 2024
Hansen Technologies Ltd
1. Basis of preparation (continued)
Those estimates and judgements material to the Financial Report are disclosed in the following notes:
Material accounting estimate and judgement
Note
Page
reference
Provision for expected credit losses of trade receivables
9
101
Capitalisation of research and development costs
12
104
Impairment of goodwill
12
106
Impairment of non-financial assets other than goodwill
12
106
Determining the lease term of contracts with renewal and termination options
– Group as a lessee
13
107
Estimating the incremental borrowing rate
13
110
Share-based payments
17
116
Business combinations
25
130
(b) Principles of consolidation
The consolidated financial statements are those of the consolidated Group, comprising the financial statements of the parent
Company, and of all entities which the parent controls. The Group controls an entity when it is exposed, or has rights to variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent accounting
policies. Adjustments are made to bring into line any dissimilar accounting policies, which may exist.
All inter-company balances and transactions, including any unrealised profits or losses, have been eliminated on consolidation.
Subsidiaries are consolidated from the date that control is established.
(c) Comparatives
Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures.
(d) Rounding amounts
The parent Company and the consolidated Group have applied the relief available under ASIC Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191 and, accordingly the amounts in the consolidated financial statements and in the Directors’
Report have been rounded to the nearest thousand dollars, or in certain cases to the nearest dollar.
(e) Going concern
The Financial Report has been prepared on a going concern basis.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
84
Annual Report 2024
Hansen Technologies Ltd
SECTION B: PERFORMANCE
This section explains the operating results of the Group for the year and provides insights into the Group’s results, including
results by operating segment, separately disclosed items during the year that affected the Group’s results, components of
income and expenses, income tax and earnings per share.
2. Segment information
(a) Description of segments
Management has determined the Group’s operating segments based on the reports reviewed by the Managing Director.
The operating segments are identified based on the types of services provided to the Group’s customers and the type of customer
the services are provided to. Discrete financial information about each of these operating businesses is reported to the executive
management team on at least a monthly basis.
Where operating segments meet the aggregation criteria, these are aggregated into reported segments. Operating segments are
aggregated based on similar products and services provided to the same type of customers using the same distribution method.
Segment profits, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Inter-segment pricing is determined on an arm’s length basis and are eliminated on consolidation. There are no
significant transactions between segments.
The Group has identified only one reportable segment as described in the table below. No operating segments have been aggregated
to form the below reportable operating segment. The ‘other’ category includes business units that do not qualify as an operating
segment, as well as the operating segments which do not meet the disclosure requirements of a reportable segment, including IT
Outsourcing and Customer Care services.
Reportable segment
Description of segment
Billing
Sale of billing applications and the provision of consulting services related to billing systems.
(b) Segment information
2024
Billing
$’000
Other
$’000
Total
$’000
Segment revenue
Total segment revenue
347,606
5,500
353,106
Revenue from external customers
347,606
5,500
353,106
Segment profit
Total segment profit
30,347
1,045
31,392
Segment profit from core operations
30,347
1,045
31,392
Items included within the segment profit:
Depreciation expense
11,800
56
11,856
Amortisation expense
37,001
1
37,002
Total segment assets
509,941
10,677
520,618
Additions to non-current assets(1)
20,521
–
20,521
Total segment liabilities
224,409
2,686
227,095
(1) This includes additions to intangible assets and plant, equipment and leasehold improvements, see Notes 11 and 12.
85
Annual Report 2024
Hansen Technologies Ltd
2. Segment information (continued)
2023
Billing
$’000
Other
$’000
Total
$’000
Segment revenue
Total segment revenue
305,012
6,754
311,766
Revenue from external customers
305,012
6,754
311,766
Segment profit
Total segment profit
58,700
1,392
60,092
Segment profit from core operations
58,700
1,392
60,092
Items included within the segment profit:
Depreciation expense
9,830
52
9,882
Amortisation expense
32,491
6
32,497
Total segment assets
448,272
13,753
462,025
Additions to non-current assets(1)
25,897
–
25,897
Total segment liabilities
173,194
3,620
176,814
(1) This includes additions to intangible assets and plant, equipment and leasehold improvements, see Notes 11 and 12.
(i) Reconciliation of segment revenue to the consolidated statement of comprehensive income
Note
2024
$’000
2023
$’000
Segment revenue
2(b)
353,106
311,766
Total operating revenue
3
353,106
311,766
Geographical segments
In presenting information based on geographical segments, segment revenue is based on the geographical location of customers.
Segment assets are based on the geographical location of the assets.
The Group’s business segments operate geographically as follows:
Geographical segment
Regions covered
APAC
Australia, New Zealand and Asia
Americas
North America, Central America and Latin America
EMEA
Europe, Middle East and Africa
Product segments
In presenting information based on product segments, the Group’s business segments provide the following types of products
and services as follows:
Product
Description of product
Licence, support
and maintenance
Billing application licence, support and maintenance services delivered as part of a total billing
system solution.
Services
Application service fees received for upgrades, configuration, implementation and
customisation.
Hardware and software sales
Provision of other third-party hardware and software licences to customers of the Group’s
billing system solutions.
Other
Includes reimbursed expenses incurred for servicing the customer contract.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
86
Annual Report 2024
Hansen Technologies Ltd
(ii) Disaggregation of revenue from contracts with customers by segment
Set out below is the disaggregation of the Group’s revenue from contracts with customers:
2024
Billing
$’000
Other
$’000
Total
$’000
Products
Licence, support and maintenance
207,500
1,499
208,999
Services
139,489
3,733
143,222
Hardware and software sales
243
–
243
Other
372
270
642
Total revenue from contracts with customers
347,604
5,502
353,106
Revenue by market vertical
Energy
198,683
2,893
201,576
Communications
148,921
–
148,921
Other
–
2,609
2,609
Total revenue from contracts with customers
347,604
5,502
353,106
Revenue by geographic segment
APAC
62,139
2,619
64,758
Americas
70,201
2,883
73,084
EMEA
215,264
–
215,264
Total revenue from contracts with customers
347,604
5,502
353,106
Timing of revenue recognition
Goods and services transferred at a point in time
44,613
272
44,885
Services transferred over time
302,991
5,230
308,221
Total revenue from contracts with customers
347,604
5,502
353,106
2023
Billing
$’000
Other
$’000
Total
$’000
Products
Licence, support and maintenance
170,123
4,332
174,455
Services
133,620
2,287
135,907
Hardware and software sales
897
–
897
Other revenue
372
135
507
Total revenue from contracts with customers
305,012
6,754
311,766
Revenue by market vertical
Energy
157,926
1,721
159,647
Communications
147,086
32
147,118
Other
–
5,001
5,001
Total revenue from contracts with customers
305,012
6,754
311,766
Revenue by geographic segment
APAC
52,261
5,049
57,310
Americas
69,216
1,705
70,921
EMEA
183,535
–
183,535
Total revenue from contracts with customers
305,012
6,754
311,766
Timing of revenue recognition
Goods and services transferred at a point in time
35,657
135
35,792
Services transferred over time
269,355
6,619
275,974
Total revenue from contracts with customers
305,012
6,754
311,766
87
Annual Report 2024
Hansen Technologies Ltd
2. Segment information (continued)
(iii) Reconciliation of segment profit from core operations to the consolidated statement of comprehensive income
Note
2024
$’000
2023
$’000
Segment profit from core operations
2(b)
31,392
60,092
Interest income
3
227
110
Unallocated depreciation and amortisation
(614)
(1,921)
Other expense
(321)
(3,956)
Profit before income tax
30,684
54,325
Income tax expense
6(a)
(9,620)
(11,530)
Net profit after income tax expense
21,064
42,795
As at 30 June 2024, the separately disclosed items have been allocated to the Billing Segment as they are directly attributable
to the segment.
(iv) Reconciliation of segment assets to the consolidated statement of financial position
2024
$’000
2023
$’000
Segment assets
2(b)
520,618
462,025
Unallocated assets
– Cash
46,021
54,279
– Other
193
283
Total unallocated assets
46,214
54,562
Total assets
566,832
516,587
Total non-current assets attributed to individual geographies is detailed as follows. Unallocated assets include deferred tax assets,
which are not allocated to a specific location as they are managed on a group basis:
2024
$’000
2023
$’000
APAC
51,267
56,114
Americas
182,226
203,459
EMEA
180,299
109,865
Unallocated assets
42
96
Total non-current assets
413,834
369,534
(v) Reconciliation of segment liabilities to the consolidated statement of financial position
2024
$’000
2023
$’000
Segment liabilities
2(b)
227,095
176,814
Unallocated liabilities
– Other
2,592
893
Total unallocated liabilities
2,592
893
Total liabilities
229,687
177,707
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
88
Annual Report 2024
Hansen Technologies Ltd
3. Revenue and other income
Note
2024
$’000
2023
$’000
Operating revenue
Revenue from contracts with customers
2(b)
353,106
311,766
Total operating revenue
353,106
311,766
Other income
From operating activities
Interest income
2(b)(iii)
227
110
Other income
2,101
3,348
Total other income
2,328
3,458
Total revenue and other income
355,434
315,224
(a) AASB 15 Revenue from Contracts with Customers
(i) Performance obligations
The transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognised.
They include amounts recognised as unearned revenue and amounts that are contracted but not yet billed or performed.
The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as at 30 June 2024, is
$178,807,000 (2023: $127,044,000). This amount mostly comprises obligations in our long-term contracts to provide software
or “software-as-a-service” (SaaS), support and maintenance, open long-term professional services contracts as well as licences
contracted but not yet earned as the licence has not yet been deployed. A portion of this amount is expected to be recognised as
revenue beyond the next 12 months following the respective consolidated statement of financial position date. This estimation is
judgemental, as it needs to consider estimates of possible future contract modifications. The amount of transaction price allocated to
the remaining performance obligations, and changes in this amount over time, are impacted by, among others, currency fluctuations
and the remaining contract period of our billing solution agreements (which, in some cases, are contracted until 5 years after the
consolidated statement of financial position date).
(ii) Contract balances
2024
$’000
2023
$’000
Asset: Accrued revenue
36,508
28,319
Liability: Unearned revenue (current)
38,837
32,854
Liability: Unearned revenue (non-current)
1,808
1,514
Accrued revenue mainly relates to software licences deployed on contract inception which have yet to be billed to the customer.
Revenue recognised in the current financial year that was included in unearned revenue at the beginning of the current financial year
was $34,775,000 (2023: $38,075,000), representing support and maintenance, professional services, software and SaaS delivered
during the financial year.
(b) Government grants
Included in “Other income” during the financial year is $658,000 (2023: $225,000) of government grants received to compensate for
eligible employee expenditure related to research activities performed in the United Kingdom and Canada. There were no unfulfilled
conditions or contingencies attached to these grants.
89
Annual Report 2024
Hansen Technologies Ltd
3. Revenue and other income (continued)
Material accounting policies
Revenue
The Group derives revenues from customer contracts associated with the provision of billing solutions. A typical contract
may include various deliverables in consideration for fees. Such deliverables in our contracts include, but are not limited
to, the provision of a software licence, support, and maintenance services, as well as professional implementation and
customisation services.
The nature of fee structures within the contracts varies by customer. The timing and frequency of invoicing depends on
the terms and conditions of each contract. Invoices are billed to the customer either in advance or in arrears on normal
commercial terms. Where the contract requires invoicing in advance, revenue is initially deferred as unearned revenue
until the Group fulfils its performance obligations. Where the contract requires invoicing in arrears, revenue recognised on
fulfilment of a performance obligation is brought to account as accrued revenue, until the Group’s right to consideration
becomes unconditional and the accrued revenue is then presented as a receivable.
The Group’s accounting policies with respect to each of the individual deliverables in the Group’s customer contracts
is outlined in sub-sections (i) onwards.
(i) Licence, support and maintenance revenue
The Group’s contracts for billing solutions regularly include software licences associated with the relevant billing solution
provided to the customer. The nature of the licence varies by customer and billing solution. As part of the licence agreement,
various support and maintenance services are available to support the customer’s use of the billing solution. This includes
the provision of various bug fixes, updates and helpdesk support.
Generally, the provision of the software licence is a distinct performance obligation. However, where there are associated
implementation, customisation or other professional services in the contract that significantly modify, customise or are
highly interrelated with the licence, the software licence and implementation services are combined into a single performance
obligation. The determination of whether the licence should be combined with the services is a matter of judgement, depending
on the nature of the implementation of the services provided and the licence specifications in the customer contract.
How the licence performance obligation is fulfilled depends on the nature of the licence and how the Group provides the
licence to the customer, irrespective of whether the licence is provided in perpetuity or for a specified contractual term:
• Where the licence is installed and delivered on customer premises, the customer can derive substantial benefits from the
licence on its own. Therefore, the performance obligation is fulfilled (and revenue recognised) at the point in time the licence
goes live, typically when customer acceptance has been obtained and the licence meets the agreed-upon specifications.
• Where the licence is hosted by the Group (for example, in some of our SaaS applications), the customer is dependent
on our continual hosting of the licence platform in order to derive and receive substantial benefits from the licence.
Therefore, the performance obligation is fulfilled (and revenue recognised) over time, which is typically, evenly over the
contracted period in which access to the licence is made available to the customer.
Licence fees in some pay-TV and telecommunications contracts are dependent on the subsequent usage of the licence by
the customer, which is determined by customer-defined metrics such as subscriber counts or end-user numbers. For these
contracts, the Group uses the sales/usage-based royalty exception and recognises revenue when the subsequent usage is
known, which is typically at the end of each billing period.
Support and maintenance services are generally considered a distinct single performance obligation, separately identifiable to
the software licence, as all the individual activities that comprise of support and maintenance are highly interrelated with each
other. Revenue related to the provision of support and maintenance is recognised evenly over the contracted term in which
the customer is entitled to receive support and maintenance.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
90
Annual Report 2024
Hansen Technologies Ltd
(ii) Services revenue
The Group provides various configuration, implementation, customisation and other professional services that the customer
is contracted to receive. This may be a part of the overall billing solution, or discrete projects separately agreed with the
customer. The various individual activities that form the professional services provided to the customer are highly interrelated
with each other and therefore are treated as a single performance obligation. Revenue from these professional services is
recognised over time by reference to the stage of completion of the contracts.
Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour
hours for each contract, and by reference to any contracted milestones achieved, such as customer acceptance of the final
specification.
As described above in “Licence, support and maintenance revenue” certain professional services might be combined with
the provision of the software licence depending on the nature of the licence and the professional services provided.
(iii) Hardware and software sales revenue
Some of the Group’s subsidiaries on-sell certain third-party hardware and software products. Revenue is recognised when
control over the hardware/software has transferred to the customer. Determination of when control has passed depends
on whether the customer has legal title over the products, whether the customer has obtained possession of the products
or whether the Group has present right to payment.
The Group is considered principal in the sales transaction as the Group has procured the products from its various vendors
and the Group bears the risk and responsibility for selling those products to the customer.
(iv) Other revenue
Other revenue consists of reimbursed expenses incurred for servicing the customer contract. Revenue is recognised when
the Group has legal enforceability under the contract to have the relevant expenses reimbursed from the customer.
(v) Financing components
The Group has contracts where the period between the transfer of the promised goods or services to the customer represents
a material financing component. The Group has assessed the impact of the financing component and determined it to be
immaterial. Therefore, the Group does not adjust any of the transaction prices for the time value of money.
(vi) Presentation and disclosure
In Note 2(b)(ii) of the financial statements, the Group has disaggregated revenue recognised from contracts with customers
into the following categories:
• The types of goods and services we provide our customers in our contracts;
• The primary market vertical that our customers operate in. ‘Energy’ includes our electricity, gas and water customers,
while ‘Communications’ includes our telecommunications and pay-TV customers; and
• The key geographic regions where our customers are located, which is consistent with the geographic segments identified
for our segment reporting.
We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected
by economic factors.
AASB 15 uses the terms “contract asset” and “contract liability”. To maintain consistency in presentation with prior periods,
the Group has retained the use of “accrued revenue” and “unearned revenue”, respectively.
In disclosing the amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations,
the Group has elected to use the practical expedient available in AASB 15 and disclose only the amounts allocated to
performance obligations for contracts with original expected duration of more than one year and for contracts where the
Group’s right to consideration from a customer does not correspond directly with the value to the customer of the Group’s
performance completed to date.
91
Annual Report 2024
Hansen Technologies Ltd
3. Revenue and other income (continued)
Interest income
Interest income is recognised when it becomes receivable on a proportional basis, taking into account the interest rates
applicable to the financial assets.
Sales tax (including GST and VAT)
Revenues, expenses and assets are recognised net of the amount of sales tax, except where the amount of sales tax incurred
is not recoverable from the Tax Office. In these circumstances the sales tax is recognised as part of the acquisition of the asset
or as part of an item of the expense. Receivables and payables in the consolidated statement of financial position are shown
inclusive of sales tax.
The net amount of GST/VAT 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.
Cash flows are presented in the consolidated statement of cash flows on a gross basis, except for the sales tax component
of investing and financing activities, which are disclosed as operating cash flows.
Government grants
Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received
and all attached conditions will be complied with. Government grants relating to costs are deferred and recognised in the
consolidated statement of comprehensive income over the period necessary to match them with the costs that they are
intended to compensate. Government grants received for which there are no future related costs are recognised in the
statement of comprehensive income immediately.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
92
Annual Report 2024
Hansen Technologies Ltd
4. Separately disclosed items
The Group has disclosed Underlying EBITDA and Underlying profit after tax, referring to the Group’s trading results, adjusted for
certain transactions during the year that are not representative of the Group’s regular business activities. The Group considers
that these transactions are of such significance to understanding the ongoing results of the Group, that the Group has elected
to separately identify these transactions to determine an ongoing result to enable a “like-for-like” comparison. These items are
described as “separately disclosed items” throughout this Financial Report.
Note
2024
$’000
2023
$’000
Net increase/(decrease) to EBITDA
Non-recurring items
Other one-off costs
3,258
596
Non-recurring income
–
(1,755)
Transaction costs related to the acquisition of powercloud
519
–
Restructuring costs incurred in powercloud
2,954
–
Total separately disclosed items
6,731
(1,159)
Other one-off costs
For the year ended 30 June 2024, the Group recognised one-off costs relating to restructuring totalling $3,258,000 to exit a
jurisdiction and utilise alternative talent centres. These costs, which primarily included redundancies and associated costs, are
part of the Group’s strategy to better integrate the business and align staffing according to customer demand. These costs are
included within the “Employee benefit expenses” account in the Group’s consolidated statement of comprehensive income. As the
operations from this jurisdiction did not represent a separate major line of business or geographical area of operations to the Group,
the results from this jurisdiction was not separately disclosed as a discontinued operation. In the previous financial year, $596,000 of
restructuring costs were incurred in relation to the partial exiting of the same jurisdiction outlined above. These costs were included
within the “Employee benefit expenses” account in the Group’s consolidated statement of comprehensive income.
Non-recurring income
In the previous financial year, a $1,755,000 provision relating to the acquisition of Sigma Systems in June 2019 was released.
This release was included within the “Other Income” account in the Group’s consolidated statement of comprehensive income.
Transaction cost related to the acquisition of powercloud
Transaction costs of $519,000 were incurred in relation to the acquisition of powercloud. These include costs associated with vendor
legal and other administrative matters, as well as related travel costs incurred to meet representatives of powercloud’s management.
These costs are included within ‘Travel Expenses’ and ‘Other Expenses’ in the Group’s consolidated statement of comprehensive
income. Further details of the acquisition of powercloud are described in Note 25.
Restructuring cost incurred in powercloud
Included in powercloud’s results for June are $2,954,000 of restructuring costs related to certain redundancy payments
post-acquisition. These costs are included within ‘Employee Benefit Expenses’ in the Group’s consolidated statement
of comprehensive income.
93
Annual Report 2024
Hansen Technologies Ltd
4. Separately disclosed items (continued)
(a) Reconciliation with Group statutory measures
2024
$’000
2023
$’000
Underlying EBITDA
92,377
99,502
Less separately disclosed items
(6,731)
1,159
EBITDA(1)
85,646
100,661
Underlying net profit after tax before acquired amortisation, net of tax(2)
39,712
55,603
Less acquired amortisation, net of tax
(13,717)
(14,116)
Underlying net profit after tax(3)
25,995
41,487
Less separately disclosed items
(6,731)
1,159
Tax effect of separately disclosed items
1,800
149
Net profit after tax
21,064
42,795
(1) EBITDA is a non-IFRS term, defined as earnings before interest, tax, depreciation and amortisation, and excluding net foreign exchange losses/(gains).
(2) Underlying net profit after tax, before acquired amortisation, net of tax, or Underlying NPATA, excludes separately disclosed items, which represent one-off costs
incurred during the financial year and acquired amortisation, net of tax.
(3) Underlying net profit after tax or Underlying NPAT excludes separately disclosed items, which represent the one-off costs during the financial year.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
94
Annual Report 2024
Hansen Technologies Ltd
5. Profit from continuing operations
Profit from continuing operations before income tax has been determined after the following specific significant expenses:
Note
2024
$’000
2023
$’000
Employee benefit expenses
Wages and salaries
194,101
154,535
Superannuation costs
14,047
10,815
Share-based payments and employee share plan expensed
8(a), 17(c)
1,080
1,528
Total employee benefit expenses
209,228
166,878
Depreciation expense
Plant, equipment and leasehold improvements
11
5,764
4,634
Right-of-use assets
13(a), 13(c)
6,454
6,397
Total depreciation of non-current assets
8(a)
12,218
11,031
Amortisation of non-current assets
Technology and other intangibles
12
18,127
19,047
Software development costs
12
19,127
14,222
Total amortisation of non-current assets
8(a)
37,254
33,269
Property and operating rental expenses
Other property-related expenses
3,341
3,678
Total property and operating rental expenses
3,341
3,678
Finance costs
Finance costs on borrowings
Prepaid borrowing costs
8(a),19(a)
285
151
Net finance costs on borrowings
3,501
3,964
Total cost on borrowings
3,786
4,115
Finance costs on lease liabilities
13(c)
1,019
772
Total finance costs
4,805
4,887
Net foreign exchange losses
Realised foreign exchange losses/(gains)
861
(1,182)
Unrealised foreign exchange losses/(gains)
8(a)
51
(1,559)
Total net foreign exchange losses/(gains)
912
(2,741)
95
Annual Report 2024
Hansen Technologies Ltd
6. Income tax
(a) Components of income tax expense
Note
2024
$’000
2023
$’000
Current tax expense
18,288
12,949
Movement in deferred tax relating to income tax expense
6(b)(iv)
(9,295)
(300)
Over provision in prior years
627
(1,119)
Total income tax expense
9,620
11,530
The prima facie tax payable on profit before income tax reconciled
to the income tax expense is as follows:
Prima facie income tax payable on profit before income tax at 30%
9,207
16,297
Add/(less) tax effect of:
Impact of tax rates on foreign subsidiaries
(2,941)
(4,547)
Research and development allowances
(601)
(524)
Over provision in prior years
627
(1,119)
Utilisation of prior year tax losses not brought to account
(22)
(21)
Deferred tax not brought to account
2,445
–
Change in tax rate during the financial year
348
18
Amortisation of acquired intangibles
450
248
Other non-allowable items
107
1,178
Income tax expense attributable to profit
9,620
11,530
(b) Deferred tax
Note
2024
$’000
2023
$’000
Deferred tax asset
6(b)(i)
7,013
6,581
Deferred tax liability
6(b)(ii)
(33,308)
(33,960)
Net deferred tax
(26,295)
(27,379)
(i) Deferred tax asset
The deferred tax asset balance comprises of the following items:
Note
2024
$’000
2023
$’000
Other payables
568
702
Employee benefits
2,444
2,235
Temporary difference relating to lease accounting
2,167
1,766
Accruals and provisions
1,834
1,878
Deferred tax asset
6(b)
7,013
6,581
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
96
Annual Report 2024
Hansen Technologies Ltd
(ii) Deferred tax liability
The deferred tax liability balance comprises of the following items:
Note
2024
$’000
2023
$’000
Research and development expenditure capitalised
(15,353)
(9,782)
Difference in depreciation of plant, equipment and leasehold
improvements for accounting and income tax purposes
(3,533)
(3,569)
Difference in amortisation of intangible assets for accounting
and income tax purposes
(11,510)
(17,555)
Share-based payments
(458)
(537)
Temporary difference relating to lease accounting
(1,911)
(1,577)
Other income not yet assessable
(260)
(505)
Other payables
(283)
(435)
Deferred tax liability
6(b)
(33,308)
(33,960)
(iii) Movement in net deferred tax balances
Note
2024
$’000
2023
$’000
Opening balance – net deferred tax
6(b)
(27,379)
(27,807)
Deferred tax recognised in income tax expense
6(a)
9,295
300
Deferred tax credited directly to share-based payments reserve
8(a), 22(b)
75
128
Additions through business combinations
25
(8,488)
–
Withholding tax credits converted to tax losses
202
–
Closing balance – net deferred tax
6(b)
(26,295)
(27,379)
(iv) Deferred tax assets not brought to account (available tax losses)
2024
$’000
2023
$’000
Gross capital losses
847
847
Gross operating losses
15,409
257
Total
16,256
1,104
Deferred tax assets have not been recognised in respect of these losses. Realisation of the unrecognised tax losses, temporary
differences and offsets are dependent on the future production of sufficient taxable profits in the relevant jurisdictions as well as
continued compliance with regulatory requirements for availability.
97
Annual Report 2024
Hansen Technologies Ltd
6. Income tax (continued)
Material accounting policies
Income tax
Current income tax expense is the tax payable on the current period’s taxable income based on the applicable income tax
rate adjusted by changes in deferred tax assets and liabilities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at the reporting date.
Deferred tax balances
Deferred tax assets and liabilities are recognised for temporary differences at the applicable tax rates when the assets are
expected to be recovered or liabilities settled. No deferred tax asset or liability is recognised in relation to temporary differences
if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either
accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
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 reassessed 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.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Tax consolidation
The Group is subject to income taxes in Australia and jurisdictions in which it has foreign operations. In some of these
jurisdictions, namely Australia and the United States, the immediate parent entity and entities it controls have formed local
income tax consolidated groups that are taxed as a single entity in their relevant jurisdiction. The head entity of the Australian
tax consolidated group is Hansen Technologies Limited. Each tax consolidated group has entered a tax funding agreement
whereby each entity in the tax consolidated group recognises the assets, liabilities, expenses and revenues in relation to its
own transactions, events and balances only. This means that:
• the parent entity recognises all current and deferred tax amounts relating to its own transactions, events and balances only;
• the subsidiaries recognise current or deferred tax amounts arising in respect of their own transactions, events and balances; and
• the current tax liabilities and deferred tax assets arising in respect of tax losses, are transferred from the subsidiary to the
head entity as inter-company payables or receivables.
Each tax consolidated group also has a tax sharing agreement in place to limit the liability of subsidiaries in the tax consolidated
group arising under the joint and several liability requirements of the tax consolidation system, in the event of default by the
parent entity to meet its payment obligations. This means that under the tax sharing agreement, the subsidiaries are legally
liable to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
98
Annual Report 2024
Hansen Technologies Ltd
7. Earnings per share
2024
$’000
2023
$’000
Reconciliation of earnings used in calculating earnings per share:
Basic earnings – ordinary shares
21,064
42,795
Diluted earnings – ordinary shares
21,064
42,795
2024
No. of Shares
2023
No. of Shares
Weighted average number of ordinary shares used in calculating earnings per share:
Number for basic earnings per share – ordinary shares
203,197,909
202,410,396
Number for diluted earnings per share – ordinary shares
205,176,386
205,588,213
2024
Cents Per
Share
2023
Cents Per
Share
Basic earnings (cents) per share
10.4
21.1
Diluted earnings (cents) per share
10.3
20.8
Classification of securities as potential ordinary shares
As at 30 June 2024 and 30 June 2023, the securities that have been classified as potential ordinary shares and included in diluted
earnings per share are the rights outstanding under the Employee Performance Rights Plan.
Material accounting policies
Earnings per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the Company by the weighted
average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average
number of ordinary shares outstanding during the year, plus the weighted average number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
99
Annual Report 2024
Hansen Technologies Ltd
SECTION C: WORKING CAPITAL AND OPERATING ASSETS
This section describes the different components of our working capital supporting the operating liquidity of the Group,
as well as the long-term tangible and intangible assets supporting the Group’s performance.
8. Cash and cash equivalents
2024
$’000
2023
$’000
Cash at bank and on hand
46,021
54,279
Total cash and cash equivalents
46,021
54,279
(a) Reconciliation of the net profit after tax to net cash flows from operating activities
Note
2024
$’000
2023
$’000
Net profit after tax
21,064
42,795
Add/(less) non-cash items:
Depreciation and amortisation
5
49,472
44,300
Share-based payments
5,17(c)
1,080
1,528
Deferred tax income credited directly to share-based payments reserve
6(b)(iv)
75
128
Unrealised foreign exchange gains
5
51
(1,559)
Recovery of previously charged expected credit loss
9
(1,204)
–
Expected credit loss charged
9
3,607
688
Lease impairment
13(a)
468
246
Amortisation of prepaid borrowing costs
5, 19(a)
285
151
Net cash generated from operating activities before change
in assets and liabilities
74,898
88,277
Changes in assets and liabilities adjusted for effects of purchase
of controlled entities during the year:
Decrease in receivables and other assets
3,740
3,538
Increase in accrued revenue
(8,189)
(6,662)
(Decrease)/Increase in creditors and liabilities
(3,773)
1,039
Increase/(Decrease) in operating and employee benefits provision
1,888
(968)
Decrease in deferred taxes
(9,572)
(428)
Increase in current tax payable
3,218
509
Decrease in unearned revenue
(3,104)
(6,483)
Net cash inflow from operating activities
59,106
78,822
Material accounting policies
Cash and cash equivalents
Cash and cash equivalents include cash on hand and at banks, short term deposits with an original maturity of six months or less
held at call with financial institutions and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the
consolidated statement of financial position.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
100
Annual Report 2024
Hansen Technologies Ltd
9. Receivables
2024
$’000
2023
$’000
Current
Trade receivables
66,019
55,608
Less: provision for expected credit losses
(3,859)
(1,487)
62,160
54,121
Sundry receivables
669
3,031
Total trade and other receivables
62,829
57,152
As at 30 June 2024, trade receivables of $14,715,000 (30 June 2023: $14,138,000) were past due but not impaired. These relate to a
number of unrelated customers for whom there is no recent history of default. The ageing analysis of the trade receivables is as follows:
Trade receivables ageing analysis at 30 June:
Gross
2024
$’000
Provided
2024
$’000
Gross
2023
$’000
Provided
2023
$’000
Not past due
47,445
–
39,983
–
Past due 1– 30 days
7,758
–
5,338
–
Past due 31– 60 days
1,203
–
4,979
–
Past due more than 61 days
9,613
(3,859)
5,308
(1,487)
Total
66,019
(3,859)
55,608
(1,487)
The sundry receivables do not contain impaired assets and are not past due. Based on the credit history of these receivables,
it is expected that these amounts will be received when due and therefore no provision for impairment has been recorded. The
Group does not hold any collateral in relation to these receivables.
Note
2024
$’000
2023
$’000
Movements in provision for expected credit loss:
Opening balance at 1 July
1,487
921
Expected credit loss charged
8(a)
3,607
688
Recovery of previously charged expected credit loss
8(a)
(1,204)
–
Amounts written off
–
(706)
Others
(31)
584
Closing balance at 30 June
3,859
1,487
101
Annual Report 2024
Hansen Technologies Ltd
9. Receivables (continued)
Material accounting policies
Trade receivables
Trade receivables represent amounts owed by our customers and are recognised initially at the amount of consideration where
the right to payment is conditional only on the passage of time. The Group holds the trade receivables with the objective of
collecting contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest
method, less a provision for expected credit loss. Trade receivables are generally due for settlement between 30 and 60 days.
The Group recognises a provision for impairment by calculating lifetime expected credit losses (ECLs). In determining the
appropriate amount of lifetime ECLs, the Group has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
Individual debts which are known to be uncollectible are written-off by reducing the carrying amount directly. Expected credit
losses are recognised in the consolidated statement of comprehensive income within “Other expenses” account. When a trade
receivable for which a provision for expected credit loss had been recognised becomes uncollectible in a subsequent period,
it is written off against the allowance account.
Critical accounting estimate and judgement
Provision for expected credit losses of trade receivables
The Group uses a provision matrix to calculate ECLs for trade 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, and coverage by letters of credit and other forms of credit insurance).
The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust
the historical credit loss experience with forward-looking information. For instance, 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 energy
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.
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 Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customers’
actual default in the future. Therefore, where required, the Group will provide for specific debtors that are experiencing one-off
instances that could result in a future loss.
10. Other assets
2024
$’000
2023
$’000
Prepayments – current
7,640
7,112
Other assets – current
–
191
Total other current assets
7,640
7,303
Prepayments – non-current
1,283
1,390
Other assets – non-current
34
44
Total other non-current assets
1,317
1,434
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
102
Annual Report 2024
Hansen Technologies Ltd
11. Plant, equipment and leasehold improvements
Note
Plant and
equipment
$’000
Leasehold
improvements
$’000
Total
$’000
Cost
At 1 July 2023
43,583
3,884
47,467
Additions
4,731
329
5,060
Increase due to acquisition of subsidiary
1,067
6
1,073
Disposals
(946)
(94)
(1,040)
Net foreign currency movements arising from foreign operations
146
(43)
103
At 30 June 2024
48,581
4,082
52,663
Accumulated depreciation and impairment
At 1 July 2023
(29,070)
(3,346)
(32,416)
Depreciation charge
5
(5,314)
(450)
(5,764)
Disposals
926
–
926
Net foreign currency movements arising from foreign operations
218
83
301
At 30 June 2024
(33,240)
(3,713)
(36,953)
Carrying amount at 30 June 2024
15,341
369
15,710
Note
Plant and
equipment
$’000
Leasehold
improvements
$’000
Total
$’000
Cost
At 1 July 2022
38,027
4,025
42,052
Additions
4,708
49
4,757
Disposals
(221)
(266)
(487)
Net foreign currency movements arising from foreign operations
1,069
76
1,145
At 30 June 2023
43,583
3,884
47,467
Accumulated depreciation and impairment
At 1 July 2022
(24,481)
(3,127)
(27,608)
Depreciation charge
5
(4,210)
(424)
(4,634)
Disposals
245
242
487
Net foreign currency movements arising from foreign operations
(624)
(37)
(661)
At 30 June 2023
(29,070)
(3,346)
(32,416)
Carrying amount at 30 June 2023
14,513
538
15,051
103
Annual Report 2024
Hansen Technologies Ltd
11. Plant, equipment and leasehold improvements (continued)
Material accounting policies
Plant, equipment and leasehold improvements
Cost and valuation
All classes of plant, equipment and leasehold improvements are stated at cost less depreciation and any accumulated
impairment losses.
Depreciation
The depreciable amounts of all fixed assets are depreciated on a straight-line basis over their estimated useful lives commencing
from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired
period of the lease or the estimated useful lives of the improvements.
The useful lives for each class of assets are:
2024
2023
Plant and equipment
3 to 15 years
3 to 15 years
Leasehold improvements
3 to 15 years
3 to 15 years
An item of plant, equipment and leasehold improvements initially recognised is derecognised upon disposal. Any gain or loss
arising from the derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the profit or loss when the asset is derecognised.
The residual values, useful lives and methods of depreciation of plant, equipment and leasehold improvements are reviewed
at each financial year end and are adjusted prospectively, if appropriate.
12. Intangible assets
Note
Goodwill
$’000
Technology
and Other
Intangibles
at Cost
$’000
Software
Development
at Cost
$’000
Total
$’000
Cost
At 1 July 2023
221,840
192,782
129,503
544,125
Increase due to acquisition of
subsidiary
40,487
–
27,704
68,191
Additions
–
–
15,461
15,461
Net foreign currency movements
arising from foreign operations
(4,265)
(3,732)
(373)
(8,370)
At 30 June 2024
258,062
189,050
172,295
619,407
Accumulated amortisation and
impairment
At 1 July 2023
(1,608)
(125,145)
(84,552)
(211,305)
Amortisation charge
5
–
(18,127)
(19,127)
(37,254)
Net foreign currency movements
arising from foreign operations
2
2,442
117
2,561
At 30 June 2024
(1,606)
(140,830)
(103,562)
(245,998)
Carrying amount at 30 June 2024
256,456
48,220
68,733
373,409
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
104
Annual Report 2024
Hansen Technologies Ltd
Note
Goodwill
$’000
Technology
and Other
Intangibles
at Cost
$’000
Software
Development
at Cost
$’000
Total
$’000
Cost
At 1 July 2022
221,406
192,014
107,689
521,109
Additions
–
–
21,140
21,140
Net foreign currency movements
arising from foreign operations
434
768
674
1,876
At 30 June 2023
221,840
192,782
129,503
544,125
Accumulated amortisation
and impairment
At 1 July 2022
(1,591)
(104,737)
(70,306)
(176,634)
Amortisation charge
5
–
(19,047)
(14,222)
(33,269)
Net foreign currency movements
arising from foreign operations
(17)
(1,361)
(24)
(1,402)
At 30 June 2023
(1,608)
(125,145)
(84,552)
(211,305)
Carrying amount at 30 June 2023
220,232
67,637
44,951
332,820
Material accounting policies
Goodwill
Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not
individually identifiable or separately recognised. Goodwill is recognised initially at the excess of: (a) the aggregate of the
consideration transferred, the fair value of the non-controlling interests and the acquisition date fair value of the acquirers
previously held equity interest; over (b) the net fair value of the identifiable assets acquired and liabilities assumed.
Technology and other intangibles
Other intangibles consist of trademarks, brand names, customer relationships and non-compete clauses.
Technology and other intangibles are recognised at cost and are amortised over their estimated useful lives, which is generally
the term of the contract for customer contracts and 5-10 years for technology and other intangibles. Technology and other
intangibles are carried at cost less accumulated amortisation and any impairment losses.
Research and development
Expenditure on research activities is recognised as an expense when incurred.
Development costs are capitalised when the entity can demonstrate all of the following: the technical feasibility of completing
the asset so that it will be available for use or sale; the intention to complete the asset and use or sell it; the ability to use or sell
the asset; how the asset will generate probable future economic benefits; the availability of adequate technical, financial and
other resources to complete the development and to use or sell the asset; and the ability to measure reliably the expenditure
attributable to the asset during its development.
Capitalised development expenditure is carried at cost less any accumulated amortisation and any accumulated impairment
losses. Amortisation is calculated using a straight–line method to allocate the cost of the intangible asset over its estimated
useful life, which is generally five years. Amortisation commences when the intangible asset is available for use.
Other development expenditure is recognised as an expense when incurred.
Impairment of non-financial assets
Assets with an indefinite useful life are not amortised but are tested at least annually for impairment in accordance with
AASB 136 Impairment of Assets. Assets subject to annual depreciation or amortisation are reviewed for impairment whenever
events or circumstances arise that indicate that the carrying amount of the asset may be impaired. An impairment loss
is recognised where the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset
is defined as the higher of its fair value less costs of disposal and value in use.
105
Annual Report 2024
Hansen Technologies Ltd
12. Intangible assets (continued)
Critical accounting estimate and judgement
Capitalisation of research and development costs
Development costs incurred are assessed for each research and development project and a percentage of the expenditure is
capitalised when technical feasibility studies demonstrate that the project will deliver future economic benefits and those benefits
can be measured reliably.
There has been an investment in research and development expenditure incurred in relation to the various billing software
platforms in the 2023 financial year. Returns are expected to be derived from this investment over the coming year(s).
The assets’ residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate at each financial year
end. The estimation of useful lives of assets has been based on historical experience and expected product lifecycle, which could
change significantly as a result of technological innovation.
(a) Impairment test for goodwill
For impairment testing, the Group views that its business combinations (including the recent investment in powercloud), giving rise to
goodwill on acquisition relate to synergetic opportunities for its billing solutions. Therefore, goodwill is allocated entirely to the Billing
CGU, which is also an operating and reportable segment.
The recoverable amount of the Billing CGU has been determined based on a value-in-use calculation using cash flow projections
over a five-year period. Cash flows beyond the five-year forecast period are extrapolated using the estimated terminal growth rates.
Key assumptions used for value-in-use calculations
The key assumptions for the Billing CGU supporting the disclosed recoverable value are as follows:
• EBITDA for the first year based on financial budgets approved by the Board;
• Terminal value growth rate of 2% (2023:2%) applied to the period beyond the first year;
• A post-tax discount rate of 8.9% (2023: 8.3%); and
• Terminal growth rate of 2% (2023: 2%) at the end of the forecast period.
Both the EBITDA growth rate beyond FY24 and the terminal growth rate ranges are derived from management’s best estimate of
revenue and operating expenditure growth, taking into account changes in the industry, customer market prospects, future product
developments and technological innovation. Profit before income tax expense is then adjusted for amounts related to tax.
The discount rate represents the current market assessment of the risks specific to the CGU, taking into consideration the time
value of money coupled with other risks factors. It is based on the Group’s weighted average cost of capital.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
106
Annual Report 2024
Hansen Technologies Ltd
Critical accounting estimates and judgements
Impairment of goodwill
The Group tests whether goodwill has been impaired on an annual basis. Management judgement is applied to identify the
cash generating units (CGU). The recoverable amount of a CGU is determined based on value-in-use calculations which
require the use of assumptions and discounting of future cash flows. These assumptions are based on best estimates at
the time of performing the valuation. Cash flow projections do not include restructuring activities that the Group is not yet
committed to or significant future investments that will enhance the performance of the assets of the CGU being tested.
Goodwill is monitored by management at the level of operating segments identified in Note 2.
Impairment of non-financial assets other than goodwill
All assets are assessed for impairment at each reporting date by evaluating whether indicators of impairment exist in relation
to the continued use of the asset by the consolidated entity. Impairment triggers include declining product, technology changes,
adverse changes in the economic or political environment or future product expectations. If an indicator of impairment exists,
the recoverable amount of the asset is determined.
13. Leases
(a) Right-of-use assets
2024
$’000
2023
$’000
Cost
34,360
29,318
Accumulated depreciation
(17,975)
(15,670)
Net carrying amount at 30 June
16,385
13,648
Movements in cost and accumulated depreciation during the year are inclusive of any net foreign currency movements arising
from foreign operations.
The Group has identified the following classes of right-of-use (“ROU”) assets: properties, vehicles and office. The largest class of asset
recognised is the Group’s property leases, consisting of office buildings, as well as rental apartments for its employees undertaking
short-term assignments overseas. Leases of properties generally have lease terms between 7 months and 10 years, while leases
of office equipment and vehicles, generally have terms between 1 and 3 years. The Group usually has rights to renew the lease
arrangement that are reasonably certain to be exercised and therefore may have long effective lease terms. The rental payments
associated with each lease varies according to the amount of space rented and the location of the lease. However, in most cases
the amount of rental payments is indexed annually in line with the relevant national consumer pricing index.
107
Annual Report 2024
Hansen Technologies Ltd
13. Leases (continued)
Reconciliation of the carrying amounts of ROU assets at the beginning and end of the current financial year by class of asset
is shown below:
Note
ROU
Properties
$’000
ROU Office
Equipment
$’000
ROU
Vehicles
$’000
Total
$’000
Cost
Balance as at 1 July 2023
29,169
73
76
29,318
Increase due to acquisition of
subsidiary
13(b)
4,254
–
23
4,277
Additions
13(b)
3,567
–
–
3,567
Re-measurement
13(b)
2,472
–
–
2,472
Impairment
(468)
–
–
(468)
Disposals
(4,093)
(8)
(58)
(4,159)
Exchange differences from
foreign operations
(647)
–
–
(647)
Balance as at 30 June 2024
34,254
65
41
34,360
Accumulated depreciation
Balance as at 1 July 2023
(15,576)
(40)
(54)
(15,670)
Depreciation charge
5, 13(c)
(6,413)
(18)
(23)
(6,454)
Disposals
3,758
8
58
3,824
Exchange differences from
foreign operations
325
–
–
325
Balance as at 30 June 2024
(17,906)
(50)
(19)
(17,975)
Net book value as at 30 June 2024
16,348
15
22
16,385
Note
ROU
Properties
$’000
ROU Office
Equipment
$’000
ROU
Vehicles
$’000
Total
$’000
Cost
Balance as at 1 July 2022
28,325
81
88
28,494
Additions
13(b)
6,160
–
18
6,178
Re-measurement
13(b)
1,186
–
–
1,186
Make good provision
19
–
–
19
Impairment
(246)
–
–
(246)
Disposals
(6,789)
(11)
(35)
(6,835)
Exchange differences from
foreign operations
514
3
5
522
Balance as at 30 June 2023
29,169
73
76
29,318
Accumulated depreciation
Balance as at 1 July 2022
(15,432)
(28)
(66)
(15,526)
Depreciation charge
5, 13(c)
(6,356)
(21)
(20)
(6,397)
Disposals
6,498
11
35
6,544
Exchange differences from
foreign operations
(286)
(2)
(3)
(291)
Balance as at 30 June 2023
(15,576)
(40)
(54)
(15,670)
Net book value as at 30 June 2023
13,593
33
22
13,648
In the financial year ended 30 June 2024, the cost of variable lease payments amounted to $nil (2023: $10,000). These variable
lease payments do not depend on an index or a rate. These are included within the “Other Expenses” account in the consolidated
statement of comprehensive income.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
108
Annual Report 2024
Hansen Technologies Ltd
(b) Lease liabilities
2024
$’000
2023
$’000
Current
4,889
5,434
Non-current
14,240
9,563
Total
19,129
14,997
Reconciliation of the carrying amounts of lease liabilities and the movements during the financial year is shown below:
Note
2024
$’000
2023
$’000
Balance as at 1 July
14,997
13,875
Increase due to acquisition of subsidiary
13(a)
4,277
–
Additions
13(a)
3,567
6,178
Re-measurement
13(a)
2,472
1,186
Disposals
(335)
(291)
Accretion of finance costs
13(c)
1,019
772
Payments of finance costs
(1,019)
(772)
Payments of principal amounts
(5,983)
(6,188)
Exchange differences from foreign operations
134
237
Balance as at 30 June
19,129
14,997
(c) Impact to profit or loss
The following are the amounts recognised in the profit or loss:
Note
2024
$’000
2023
$’000
Depreciation expense of ROU assets
5, 13(a)
6,454
6,397
Finance costs on lease liabilities
5, 13(b)
1,019
772
Variable lease payments
–
10
Income from sub-leasing of ROU assets
(261)
(83)
Total amount recognised in profit or loss
7,212
7,096
(d) Impact to cashflows
The Group had total cash outflows for leases of $7,002,000 for the year ended 30 June 2024 (2023: $6,960,000). Out of the
$7,002,000 (2023: $6,960,000) cash outflows, $5,983,000 (2023: $6,188,000) relates to cash outflows from financing activities
(principal payments), while the remaining balance relates to cash outflows from operating activities (finance costs on lease liabilities).
The Group also had non-cash additions of ROU assets of $7,844,000 (2023: $6,178,000) and lease liabilities of $7,844,000 (2023:
$6,178,000) during the financial year.
109
Annual Report 2024
Hansen Technologies Ltd
13. Leases (continued)
(e) Future lease payments
Future lease payments in relation to lease liabilities are as follows:
Note
2024
$’000
2023
$’000
Less than 6 months
18(b), 23
3,597
3,280
6-12 months
18(b), 23
2,587
2,900
Total current lease payments
6,184
6,180
Future finance costs on lease liabilities
(1,295)
(746)
Current lease liabilities
4,889
5,434
1-2 years
18(b), 23
4,850
3,389
2-3 years
18(b), 23
4,555
2,366
More than 3 years
18(b), 23
7,957
5,634
Total non-current lease liabilities
17,362
11,389
Future finance costs on lease liabilities
(3,122)
(1,826)
Non-current lease liabilities
14,240
9,563
The weighted average incremental borrowing rate applied to lease liabilities was 6.33% (2023: 5.89%).
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
110
Annual Report 2024
Hansen Technologies Ltd
Material accounting policies
Leases
The determination of whether an arrangement is (or contains) a lease depends on whether the arrangement conveys the right
to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an identified
asset exists when the arrangement involves the use of an identified asset, when the Group obtains substantially all the economic
benefits from the use of the asset, and when the Group has the right to direct the use of the asset.
The lease term is first determined with reference to the non-cancellable period of the lease contract, adjusted for any periods
covered by options to extend the lease, and/or to early terminate the lease if the Group is reasonably certain to exercise the
options. Judgement is applied by the Group in determining whether the Group is reasonably certain to exercise the options.
Lease liabilities are initially recognised and measured based on the total value of fixed and variable contractual lease payments
over the lease term, including payments to extend or terminate the lease if the Group is reasonably certain to exercise the option
to extend or terminate the lease, respectively. The lease payments are discounted to present value based on the incremental
borrowing rate implicit in the lease.
Lease payments on properties exclude service fees for maintenance, cleaning and other costs as these costs are separated
as non-lease components. However, the Group has elected not to separate lease and non-lease components for leases of
vehicles and offices.
Leased assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount,
initial direct costs incurred when entering the lease, less any lease incentives received.
Leased assets are depreciated on a straight-line basis over the earlier of the end of the useful life of the right-of-use asset
or the end of the lease term, as follows:
• ROU properties
• ROU office equipment
• ROU vehicles
Estimated useful lives of right-of-use assets are determined on the same basis as those of plant, equipment and
leasehold improvements.
The right-of-use asset is also periodically assessed for impairment losses and adjusted for certain remeasurements
of the lease liability.
The Group does not apply the practical expedients for short-term leases and leases for which the assets are of low value.
Presentation and disclosure
Depreciation on right-of-use assets is included as part of “Depreciation expense” account in the consolidated statement
of comprehensive income, and interest expense on lease liabilities is included as part of “Finance costs on lease liabilities”
account in the consolidated statement of comprehensive income.
Right-of-use assets are disclosed separately on the consolidated statement of financial position, with Note 13(a) disaggregating
the lease assets by class of asset. Lease liabilities are presented as current and non-current in the consolidated statement
of financial position depending on the timing of the settlement of contractual cash outflows.
The repayment of the principal portion of lease payments is presented as part of financing activities in the consolidated
statement of cash flows, and the interest portion is presented as part of operating activities.
111
Annual Report 2024
Hansen Technologies Ltd
13. Leases (continued)
Critical accounting estimate and judgement
Determining the lease term of contracts with renewal and termination options – Group as a lessee
The Group 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.
The Group has several lease contracts that include extension and termination options. The Group applies judgement
in evaluating whether it is reasonably certain whether 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 Group reassesses the lease term if there is an 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 terminate (e.g. construction of significant
leasehold improvements or significant customisation to the leased asset).
Estimating the incremental borrowing rate
Where the Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group 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 Group ‘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). The Group 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).
14. Payables
Note
2024
$’000
2023
$’000
Trade payables
8,850
7,568
Accrued payables
15,785
13,851
Other payables
6,899
3,609
Total payables
18(b)
31,534
25,028
Material accounting policies
Trade payables
Trade payables are initially recognised at their fair value and subsequently carried at amortised cost and are not discounted.
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are
unpaid. The amounts are unsecured and are paid in accordance with vendor terms, which are usually within 30 to 60 days
of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after
the reporting period.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
112
Annual Report 2024
Hansen Technologies Ltd
15. Provisions
2024
$’000
2023
$’000
Current
Commercial provisions(1)
8,991
–
Other provisions(1)
1,997
57
Restructuring provisions
2,954
–
Onerous provisions
1,089
513
Total current provisions(2)
15,031
570
Non-current
Make good provisions
180
300
Onerous provisions
570
–
Total non-current provisions(3)
750
300
Reconciliation of other provisions
Carrying amount at beginning of year
870
1,376
Net provisions/(payments/reversals) made during the year
14,911
(506)
Carrying amount at end of year
15,781
870
(1) These provisions relate primarily to existing provisions for powercloud made pre-acquisition. Commercial provisions can include service-related vendor
and customer provisions, and product provisions. These provisions are assessed on a six monthly basis.
(2) Included within current provisions in the consolidated statement of financial position.
(3) Included within non-current provisions in the consolidated statement of financial position.
Material accounting policies
Provisions
Provisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result, and that outflow can be reliably measured.
113
Annual Report 2024
Hansen Technologies Ltd
SECTION D: PEOPLE
This section provides information about our employee benefit obligations, including annual leave, long service leave and post-
employment benefits. It also includes details about our share plans and the compensation paid to key management personnel.
16. Employee benefits
2024
$’000
2023
$’000
Current employee benefits(1)
15,177
13,557
Non-current employee benefits(2)
165
109
Total employee benefits liability
15,342
13,666
(1) Included within current provisions in the consolidated statement of financial position.
(2) Included within non-current provisions in the consolidated statement of financial position.
Employee Benefits Liability
Employee benefits liability represents amounts provided for annual leave and long service leave. The current portion for this provision
includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that
have vested due to employees having completed the required period of service.
Based on past experience, the Group does not expect the full amount of annual leave or long service leave balances classified as
current liabilities to be settled within the next 12 months. These amounts are presented as current liabilities since the Group does
not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.
(a) Directors’ and executives’ compensation
2024
$
2023
$
Short term employment benefits
4,051,061
3,945,132
Post-employment benefits
180,240
150,070
Share-based payments
743,139
656,618
Termination benefits
595,029
–
Total
5,569,469
4,751,820
Detailed remuneration disclosures are provided in the remuneration report on pages 57 to 76.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
114
Annual Report 2024
Hansen Technologies Ltd
Material accounting policies
Short-term employee benefit obligations
Liabilities arising in respect of wages and salaries, annual leave, long service leave and any other employee benefits
expected to be settled within 12 months of the reporting date are measured at the amounts based on remuneration rates
that are expected to be paid when the liability is settled. The expected cost of short-term employee benefits in the form of
compensated absences such as annual leave and long service leave is recognised in the provision for employee benefits.
All other short-term employee benefit obligations are presented as payables.
Other long-term employee benefit obligations
The provision for other long-term employee benefits, including obligations for long service leave and annual leave, which are
not expected to be settled wholly before twelve months after the end of the reporting period, are measured at the present
value of the estimated future cash outflow to be made in respect of the services provided by employees up to the reporting
date. Expected further payments incorporate anticipated future wage and salary levels, durations of service and employee
turnover, and are discounted at rates determined by reference to market yields at the end of the reporting period on high
quality corporate bonds that have maturity dates that approximate the terms of the obligations. Any re-measurements for
changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods
in which the change occurs.
Other long-term employee benefit obligations are presented as current liabilities in the consolidated statement of financial
position if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date,
regardless of when the actual settlement is expected to occur. All other long-term employee benefit obligations are presented
as non-current liabilities in the consolidated statement of financial position.
Retirement benefit obligations
The consolidated entity makes superannuation and pension contributions to the employee’s defined contribution plan of
choice in respect of employee services rendered during the year. These contributions are recognised as an expense in the
same period when the related employee services are received. The Group’s obligation with respect to employee’s defined
contribution entitlements is limited to its obligation for any unpaid superannuation and pension guarantee contributions at the
end of the reporting period. All obligations for unpaid superannuation and pension guarantee contributions are measured at
the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the
consolidated statement of financial position.
Bonus plan
The consolidated entity recognises a provision when a bonus is payable in accordance with the employee’s contract of
employment or review letter and the amount can be reliably measured.
Termination benefits
The Group recognises an obligation and expense for termination benefits at the earlier of: (a) the date when the Group can
no longer withdraw the offer for termination benefits; and (b) when the Group recognises costs for restructuring and the costs
include termination benefits. In either case, the obligation and expense for termination benefits is measured on the basis of
the best estimate of the number of employees expected to be affected. Termination benefits that are expected to be settled
wholly before twelve months after the annual reporting period in which the benefits are recognised are measured at the
(undiscounted) amounts expected to be paid and are presented as current liabilities in the consolidated statement of financial
position. All other termination benefits are accounted for on the same basis as other long-term employee benefits and are
presented as non-current liabilities in the consolidated statement of financial position.
115
Annual Report 2024
Hansen Technologies Ltd
17. Share-based payments
(a) Employee Performance Rights Plan
The Employee Performance Rights Plan (the Rights Plan) was approved by shareholders at the Company’s AGM on
23 November 2017. Under the Plan, awards are made to eligible executives and other management personnel who have an
impact on the Group’s performance. Plan awards for long-term incentives (LTI) are granted in the form of performance rights over
shares which vest over a period of three years subject to meeting performance measures and continuous employment with the
Company. Plan awards for deferred short-term incentives (STI) are deferred for a two-year period of which the employee must
remain employed, following the achievement of annual financial and non-financial performance measures. Each performance
right is to subscribe for one ordinary share upon vesting and, when issued, the shares will rank equally with other shares.
Performance rights issued under the Employee Performance Rights Plan are valued on the same basis as those issued to KMP,
which is described in Note 17(b).
Performance rights issued and outstanding as at 30 June 2024
Grant date
Vesting date
Type
Fair Value
Per Right
$
No. of
Rights at
01/07/2023
Rights
Granted
Rights
Vested,
Forfeited
or Other
No. of
Rights at
30/06/2024
1 Jul 2020
30 Jun 2023(1)
STI
2.70
523,247
–
(523,247)
–
1 Jul 2020
30 Jun 2023(2)
LTI
2.77
199,303
–
(199,303)
–
15 Sep 2021
30 Jun 2024(3)
LTI
4.99
206,449
–
(5,667)
200,782
15 Sep 2021
30 Jun 2024(4)
LTI
5.29
84,302
–
(21,912)
62,390
15 Sep 2022
30 Jun 2025(5)
LTI
3.74
382,351
–
(32,878)
349,473
15 Sep 2022
30 Jun 2025(6)
LTI
4.30
61,679
–
(5,657)
56,022
1 Jul 2023
30 Jun 2026(7)
LTI
4.80
–
611,534
(143,798)
467,736
1 Jul 2023
30 Jun 2027(7)
LTI
4.80
–
12,500
–
12,500
Total
1,457,331
624,034
(932,462)
1,148,903
(1) Majority of the performance rights in relation to the Enhanced STI Plan granted on 1 July 2020 have exceeded the required measurement hurdles, allowing
an accelerated basis paying up to 135% of the entitlement on 30 June 2023. The rights were exercised 14 August 2023.
(2) Performance rights granted on 1 July 2020 in relation to EPSa CAGR and TSR measures have vested at 100% on 30 June 2023 based on the discretion
of the Board. The rights were exercised on 14 August 2023.
(3) Performance rights granted on 15 September 2021 with a fair value per right of $4.99 refers to rights linked to Group Revenue and TSR measures. Performance
rights for the FY22 LTI plan of 241,576 have not exceeded the required specific annual KPIs and did not vest on 30 June 2024 and will be cancelled in due course.
Remaining rights of 21,596 vested on 30 June 2024.
(4) Performance rights granted on 15 September 2021 with a fair value per right of $5.29 refers to rights linked to non-market performance conditions such
as Group Revenue and Regional Revenue; Product Revenue and Product Profit Margin.
(5) Performance rights granted on 15 September 2022 with a fair value per right of $3.74 refers to rights linked to Revenue and TSR measures.
(6) Performance rights granted on 15 September 2022 with a fair value per right of $4.30 refers to rights linked to non-market performance conditions such
as Revenue and Profit Margin.
(7) Performance rights granted on 1 July 2023 with a fair value per right of $4.80 refers to rights linked to non-market performance conditions such as Revenue
and Profit Margin.
All the unvested performance rights will be measured against specific measurement criteria as detailed in the preceding table
and will be awarded in the period following the measurement period.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
116
Annual Report 2024
Hansen Technologies Ltd
Performance rights issued and outstanding as at 30 June 2023
Grant date
Vesting date
Type
Fair Value
Per Right
$
No. of
Rights at
01/07/2022
Rights
Granted
Rights
Vested,
Forfeited
or Other
No. of
Rights at
30/06/2023
2 Sep 2019
30 Jun 2022(1)
STI
3.11
78,384
–
(78,384)
–
2 Sep 2019
30 Jun 2022(2)
LTI
2.83
646,600
–
(646,600)
–
1 Jul 2020
30 Jun 2023(3)
STI
2.70
594,707
–
(71,460)
523,247
1 Jul 2020
30 Jun 2023(4)
LTI
2.77
212,622
–
(13,319)
199,303
15 Sep 2021
30 Jun 2024(5)
LTI
4.99
235,424
–
(28,975)
206,449
15 Sep 2021
30 Jun 2024(6)
LTI
5.29
95,049
–
(10,747)
84,302
15 Sep 2022
30 Jun 2025(7)
LTI
3.74
–
430,059
(47,708)
382,351
15 Sep 2022
30 Jun 2025(8)
LTI
4.30
–
67,889
(6,210)
61,679
Total
1,862,786
497,948
(903,403)
1,457,331
(1) Performance rights granted on 2 September 2019 in relation to STI measures have met the required measurement hurdles and vested at 100% on 30 June 2022.
The rights were exercised on 19 August 2022.
(2) Performance rights granted on 2 September 2019 in relation to EPSa CAGR and TSR measures have exceeded the required measurement hurdles and market
conditions, respectively and vested on an accelerated basis paying 150% of the entitlement on rights linked to EPSa CAGR measure and 137% of the entitlement
on rights linked to TSR measure on 30 June 2022. The rights were exercised on 19 August 2022.
(3) Majority of the performance rights in relation to the Enhanced STI Plan granted on 1 July 2020 have exceeded the required measurement hurdles, allowing an
accelerated basis paying up to 135% of the entitlement on 30 June 2023.
(4) Performance rights granted on 1 July 2020 in relation to EPSa CAGR and TSR measures have vested at 100% on 30 June 2023 based on the discretion of the Board.
(5) Performance rights granted on 15 September 2021 with a fair value per right of $4.99 refers to rights linked to Group Revenue and TSR measures.
(6) Performance rights granted on 15 September 2021 with a fair value per right of $5.29 refers to rights linked to non-market performance conditions such as Group
Revenue and Regional Revenue; Product Revenue and Product Profit Margin.
(7) Performance rights granted on 15 September 2022 with a fair value per right of $3.74 refers to rights linked to Revenue and TSR measures.
(8) Performance rights granted on 15 September 2022 with a fair value per right of $4.30 refers to rights linked to non-market performance conditions
such as Revenue and Profit Margin.
The weighted average contractual life of outstanding performance rights at the end of the financial year is 1.2 year (2023: 0.81 year).
(b) Fair value of performance rights granted
The fair value of Total Shareholder Return (TSR) performance rights at grant date is independently determined using an adjusted
form of the Black Scholes Model which includes a Monte Carlo simulation model that takes into account the term of the performance
rights, the impact of dilution (where material), the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield, the risk-free interest rate for the term of the performance rights and the correlations and volatilities of
the peer group companies.
The fair value of Revenue and Profit Margin performance rights at grant date is independently determined using a conventional
Black Scholes Model.
117
Annual Report 2024
Hansen Technologies Ltd
17. Share-based payments (continued)
Details of the assessed fair value of the performance rights as well as the model inputs for rights granted, during the year ended
30 June 2024 and for the prior year 30 June 2023, are presented below:
2024
2023
Grant date
1 July 2023
15 September 2022
Expected vesting date
30 Jun 2026
30 June 2025
Measurement period
1 July 2023 to 30 June 2026
1 July 2022 to 30 June 2025
Fair value of performance rights granted – Revenue
and Profit Margin
$4.80
$4.30
Fair value of performance rights granted – TSR rights
–
$3.18
Share price at grant date
$5.20
$4.64
Expected price volatility of the company’s shares
32.5%
32.5%
Expected dividend yield
2.27%
2.47%
Risk-free interest rate
3.88%
3.28%
The expected price volatility is based on the historic volatility (based on the life of the performance rights), adjusted for any expected
changes to future volatility due to publicly available information.
(c) Expenses arising from share-based payment transactions
Note
2024
$’000
2023
$’000
Rights issued under employee performance rights plan FY21
–
483
Rights issued under employee performance rights plan FY22
(118)
459
Rights issued under employee performance rights plan FY23
466
586
Rights issued under employee performance rights plan FY24
732
–
Total
5, 8(a), 22(b)
1,080
1,528
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
118
Annual Report 2024
Hansen Technologies Ltd
Material accounting policies
Share-based payments
The Group operates equity-settled share-based payment employee share, options, and rights schemes. The fair value of
the equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting
period, with a corresponding increase to an equity account, ending on the date on which the relevant employees become fully
entitled to the award (the vesting date). The fair value of shares is measured at the market bid price at grant date. In respect
of share-based payments that are dependent on the satisfaction of performance conditions, the number of options and
rights expected to vest is reviewed and adjusted at each reporting date. The amount recognised for services received as
consideration for these equity instruments granted is adjusted to reflect the best estimate of the number of equity instruments
that eventually vest.
Share-based payments are subject to two different forms of measurement:
• Market-based
• Non-market-based
These measurement criteria are subject to different accounting treatments under AASB 2 Share-based Payment.
Market-based measurement
Any awards subject to market conditions will vest irrespective of the condition being met. Where a condition is not met,
the expense associated with the award will continue to be recognised over the vesting period.
Non-market-based measurement
For any non-market-based awards where the condition is not satisfied, the expense incurred to date is reversed and no
further charge is recognised over the remaining period.
Critical accounting estimate and judgement
Share-based payments
The fair value of rights is estimated on the grant date using an adjusted form of the Black Scholes Model and Monte Carlo
simulation model. Estimating fair value for share-based payments requires significant assumptions such as determining
the most appropriate inputs to the valuation model, including the expected life of the share option or performance right,
volatility in the share price and dividend yield.
119
Annual Report 2024
Hansen Technologies Ltd
SECTION E: CAPITAL AND FINANCIAL RISK MANAGEMENT
This section explains our policies and procedures applied to manage our financing and capital structure, and the associated
risks that we are exposed to. The Group manages its financial and capital structure to maximise shareholder return, maintain
an optimal cost of capital and provide flexibility for strategic investments.
18. Financial risk management
The Group is exposed to a variety of financial risks, principally related to credit, liquidity, interest rate and foreign currency
risk. The Group’s risk management framework is aligned with best practices and designed to reduce volatility on our financial
performance and to support the delivery of our business objectives. The Board has overall responsibility for identifying and
monitoring operational and financial risks.
(a) Credit risk
Nature of risk
The risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations. Credit risk arises principally from the Group’s receivables from
customers and our investments in debt securities.
Exposure to the risk
The Group’s maximum exposure to credit risk at 30 June 2024 and 30 June 2023 is the carrying
amount of financial assets, net of any provisions for impairment and excluding the value of any
collateral or other security.
The gross trade receivables balance as at 30 June 2024 was $66,019,000 (2023: $55,608,000).
The ageing analysis of trade and other receivables is provided in Note 9. As the Group undertakes
transactions with a large number of customers and regularly monitors payment in accordance with
credit terms, the financial assets that are past due but not impaired, are expected to be received.
The Group’s exposure to credit risk is affected by the regions and industries our customers operate
in. Set out below shows the concentration of our trade receivables balances by the industry they
operate in.
33%
1%
66%
44%
2%
54%
Energy
FY24
FY23
Other
Communications
How is the risk managed?
Receivables are managed on an ongoing basis. The Group does not have any material credit risk
exposure to any single debtor or group of debtors. Ageing analysis and ongoing collectability reviews
are performed and, where appropriate, an expected credit loss provision is raised. Historically,
the Group has not had any significant write-offs in our trade receivables.
The Group minimises concentrations of credit risk in relation to trade receivables by undertaking
transactions with a large number of customers. The credit quality of a customer is assessed based
on a variety of factors, including their credit ratings and financial position.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
120
Annual Report 2024
Hansen Technologies Ltd
(b) Liquidity risk
Nature of risk
The risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
Exposure to the risk
The table below categorises the Group’s financial liabilities into their relevant contractual maturities.
Amounts included represent undiscounted cash flows.
Note 19 provides additional details on the Group’s borrowing arrangements.
How is the risk managed?
The Group’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group reviews its minimum levels of cash and cash equivalents on an ongoing basis, and closely
monitors rolling cash flow forecasts based on its view on the nature and timing of expected receipts
and payments. The Group has historically been able to generate and retain strong positive cash
flows. Additionally, a multi-currency borrowing facility has been arranged with the Group’s financiers
to provide increased capacity for strategic growth objectives.
Contractual maturities of financial liabilities
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments
as at 30 June 2024 and 30 June 2023.
Contractual cash flows $’000
Financial liabilities
Note
Less than
6 months
6-12
months
1-2
years
2-3
years
> 3
years
Total
payments
2024
Trade and other payables
14
31,534
–
–
–
–
31,534
Lease liabilities(1)
13(e)
3,597
2,587
4,850
4,555
7,957
23,546
Secured borrowings(2)
19
–
–
70,539
–
–
70,539
Total
35,131
2,587
75,389
4,555
7,957
125,619
2023
Trade and other payables
14
25,028
–
–
–
–
25,028
Lease liabilities(1)
13(e)
3,280
2,900
3,389
2,366
5,634
17,569
Secured borrowings(3)
19
–
–
54,716
–
–
54,716
Total
28,308
2,900
58,105
2,366
5,634
97,313
(1) Lease liabilities are recognised and disclosed at present value in accordance with AASB 16 and the Group accounting policy.
(2) A syndicated multi-currency borrowing facility was established on 8 February 2024 with a maturity date of 31 July 2025.
(3) As at 8 June 2023, the syndicated mutli-currency borrowing facility was refinanced with a maturity date of 31 July 2025.
(c) Interest rate risk
Nature of risk
The risk that the fair value or the future cash flows of a financial instrument will fluctuate as a result of
changes in market interest rates.
Exposure to the risk
The Group’s main exposure to interest rate risk arises from its lease liabilities, borrowings and cash
and cash equivalents. No other financial assets or liabilities are expected to be exposed to interest
rate risk. The weighted average variable interest rate across all our borrowings and lease liabilities at
30 June 2024 is 6.18% (2023: 5.50%). If the interest rate were to increase or decrease by 1%, with
all other variables held constant, the impact to pre-tax profit is $734,000 (2023: $791,000) and the
impact to post-tax equity(1) is $526,000 (2023: $569,000).
How is the risk managed?
The Group ensures it has access to diverse sources of funding, including access to foreign currency
debt. The Group closely monitors its debt ratios to reduce its risk exposure to uncertainty in the
global markets if interest rates will fall or rise. Management is comfortable with the risk associated
with using variable interest rates due to the current level of borrowings.
(1) Post-tax equity is calculated as the net of the blended effective tax rate on pre-tax profit based on where the interest-bearing debt is located (i.e., Australia, Canada
and United Kingdom) and the prevailing corporate tax rate in each of those jurisdictions (i.e., 30%, 26.5% and 25% respectively).
121
Annual Report 2024
Hansen Technologies Ltd
18. Financial risk management (continued)
(d) Foreign currency risk
Nature of risk
The risk that the fair value or future cash flows of a financial instrument or forecasted transaction
will fluctuate because of changes in foreign exchange rates.
Exposure to the risk
The Group operates internationally and as such has exposure to foreign currency movements. The
Group has expanded its international operations substantially in recent years to the extent that in
excess of 84% (2023: 83%) of its revenue is now earned in foreign currency designated transactions.
The Group has a number of offices located internationally and more than 90% (2023: 89%) of its
work force is located overseas and paid in foreign currencies.
Changes in foreign currency exchange rates would be limited to the revaluation of foreign currency
denominated borrowings, intercompany financing arrangements denominated in foreign currencies,
and foreign currency bank balances in the Group at market rates at consolidated statement of
financial position date.
The Group’s primary foreign currency exposure relates to the movement in US Dollar (USD), British
Pound (GBP), Canadian Dollar (CAD) and Euro (EUR) exchange rates. At the reporting date, cash
and cash equivalents included $38.9 million (2023: $47.0 million) denominated in foreign currencies.
If the foreign currency exchange rate for our primary foreign currencies (USD, GBP, CAD and EUR)
were to move by 10%, with all other variables held constant, the impact to our foreign currency
translation reserves (included within ‘Equity’ in the consolidated statement of financial position)
on translation of our foreign currency-denominated cash and cash equivalents is as follows:
Increase/(decrease) $’000
USD
GBP
CAD
EUR
2024
2023
2024
2023
2024
2023
2024
2023
+10%
552
1,098
745
1,010
578
396
1,133
1,415
-10%
(552)
(1,098)
(745)
(1,010)
(578)
(396)
(1,133)
(1,415)
The Group’s exposure to foreign currency changes for all other currencies and other financial
statement items is not material, as the Group has natural hedging and designated hedging
relationships in place (refer to “How is the risk managed?” for a further explanation).
How is the risk managed?
The Group manages its foreign currency risk by evaluating its exposure to fluctuations on an
ongoing basis.
The Group’s overseas subsidiaries transact in different functional currencies. The effects of any
exchange rate movements in respect of the net assets of our foreign subsidiaries are recognised
in the foreign currency translation reserve in equity. Accordingly, the Group has an in-built natural
hedge against major currency fluctuations and, except for significant sudden change, is protected
in part by its corporate structure against currency movements so that the impact is largely limited
to the margin.
In addition, during the financial year, the Group held a foreign currency borrowing as part of the
syndicated multi-currency borrowing facility agreement as disclosed in Note 19, which has been
designated as a hedging instrument of the net assets of some of the Group’s principal overseas
subsidiaries in order to offset our risk exposure arising from the translation of these subsidiaries
into Australian dollars. There is no impact to the profit or loss on the translation of the Group’s
overseas subsidiaries or foreign currency borrowings to the Australian dollar.
The Group’s subsidiaries also enter into various financing and transactional arrangements with
each other in accordance with local regulatory requirements. The Group regularly reviews these
arrangements to minimise its exposure on the translation of outstanding foreign currency-
denominated intercompany balances to the Australian dollar, which impact profit.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
122
Annual Report 2024
Hansen Technologies Ltd
Material accounting policies
Functional and presentation currency
The financial statements of each entity within the consolidated Group are measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements of the Group are presented
in Australian dollars, which is the Group’s functional and presentation currency.
Foreign currency transactions and balances
Transactions in foreign currencies of entities within the consolidated Group are translated into its functional currency at the rate
of exchange ruling at the date of the transaction.
Foreign currency monetary items that are outstanding at the reporting date (other than monetary items arising under foreign
currency contracts where the exchange rate for that monetary item is fixed in the contract) are translated using the spot rate
at the end of the financial year.
All resulting exchange differences arising on settlement or re-statement are recognised in profit or loss and presented in the
consolidated statement of comprehensive income for the financial year.
(e) Fair value measurements
Due to their short-term nature, the fair value of receivables and payables approximates their carrying amounts as disclosed in the
consolidated statement of financial position and notes to the consolidated financial statements. At 30 June 2024 and 30 June 2023,
there are no assets or liabilities carried at fair value on a recurring basis.
19. Borrowings
Note
2024
$’000
2023
$’000
Non-current
Secured
Term facility – gross borrowings
18(b)
70,539
54,716
Term facility – net prepaid borrowing costs
(318)
(407)
Total
70,221
54,309
The Group refinanced its $104 million syndicated multi-currency facility on 8 February 2024 to fund the acquisition of powercloud
and working capital requirements. As at 30 June 2024, AU$70 million (30 June 2023: AU$54 million) was drawn on the facility and
has thirteen months to maturity, expiring 31 July 2025. The facility balance available at 30 June 2024 is $20.0 million. The average
interest rate of the borrowings is 6.22% (30 June 2023: 6.19%).
123
Annual Report 2024
Hansen Technologies Ltd
19. Borrowings (continued)
(a) Changes in liabilities arising from financing activities
Note
2024
$’000
2023
$’000
Opening balance at 1 July
54,309
87,912
Cash flows from financing activities
Net repayment of borrowings
17,936
(33,615)
Cash flows from non-financing activities
Establishment of loan fees – paid
(205)
(201)
Non-cash changes
Amortisation of prepaid borrowing costs
5, 8(a)
285
151
Effect of foreign exchange
(2,104)
62
Closing balance at 30 June
70,221
54,309
Material accounting policies
Loans and borrowings
Interest-bearing loans and borrowings are initially recognised as financial liabilities at fair value net of directly attributable
transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the effective interest rate (EIR) method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.
Borrowings are classified as non-current liabilities except for those that mature in less than 12 months from the reporting date,
which are classified as current liabilities, unless the borrower has the discretion to refinance or rollover the borrowings.
Borrowing costs
Borrowing costs can include interest expense calculated using the effective interest method and finance charges in respect
of finance leases. Borrowing costs are expensed as incurred except for borrowing costs incurred as part of the construction
of a qualifying asset, in which case the costs are capitalised until the asset is ready for its intended use or sale.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
124
Annual Report 2024
Hansen Technologies Ltd
20. Contributed capital
(a) Issued and paid-up capital
2024
$’000
2023
$’000
Ordinary shares, fully paid
150,599
148,688
Total
150,599
148,688
(b) Movements in shares on issue
Ordinary Shares
(excluding
Treasury
Shares) Treasury Shares
Total Share Capital
No. of Shares
No. of Shares
No. of Shares
$’000
Balance at 1 July 2022
200,806,485
1,171,783
201,978,268
146,857
Shares issued to satisfy future rights exercises
–
200,352
200,352
–
Shares issued under the dividend reinvestment plan
382,167
–
382,167
1,831
Performance rights exercised
752,560
(556,074)
196,486
–
Balance at 30 June 2023
201,941,212
816,061
202,757,273
148,688
Shares issued to satisfy future rights exercises
–
82,362
82,362
–
Shares issued under the dividend reinvestment plan
366,843
–
366,843
1,911
Performance rights exercised
742,694
(439,731)
302,963
Balance at 30 June 2024
203,050,749
458,692
203,509,441
150,599
Treasury shares are shares in the Company that are held by Hansen Technologies Limited Employee Share Plan Trust (the Trust)
for the purpose of holding shares for the satisfaction of rights under the existing and future equity award plans. The Trust was
established on 24 June 2022.
The Trust provides the Group with greater flexibility to accommodate its incentive arrangements both now and into the future. The
Trust helps manage the capital requirements and can use the contributions made by Hansen either to acquire shares in Hansen on
market, or alternatively to subscribe for new Hansen shares. The Trust provides an arm’s length vehicle to acquire and hold Hansen
shares on behalf of employees and allows Hansen to satisfy Corporations Law requirements relating to companies dealing in their
own shares as well as assisting with management of insider trading restrictions. Pacific Custodians Pty Limited, an independent
third party, is the Trustee of the Trust, and operates the Trust in accordance with Hansen Technologies Limited Employee Share Plan
Trust Deed.
Where there are unallocated shares within the Trust, the Trustee may apply any capital receipts, dividends or other distributions
received to purchase further shares and/or to pay any reasonable disbursements associated with the operation of the Trust.
(c) Rights of each type of share
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares
held. At shareholders meetings, each ordinary share is entitled to one vote when a poll is called.
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to
provide returns for shareholders and benefits for other stakeholders while maintaining an optimal capital structure to reduce the cost
of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares, increase debt, sell assets to reduce debt or a combination of these activities.
The capital risk management policy remains unchanged from the 30 June 2023 Financial Report.
125
Annual Report 2024
Hansen Technologies Ltd
21. Dividends
A final dividend of 5 cents per share has been declared, partially franked to 2.1 cents per share. This final dividend was announced
to the market on 21 August 2024 and will subsequently be paid on 20 September 2024. The amount declared has not been
recognised as a liability in the accounts of Hansen Technologies Limited as at 30 June 2024.
2024
$’000
2023
$’000
Dividends paid during the year (net of dividend re-investment)
5 cents per share final dividend paid 20 September 2023 – partially franked(1)
9,337
–
5 cents per share final dividend paid 21 September 2022 – partially franked(1)
–
9,166
5 cents per share interim dividend paid 21 March 2024 – partially franked(2)
9,066
–
5 cents per share interim dividend paid 21 March 2023 – unfranked(3)
–
9,237
Total
18,403
18,403
Proposed dividend not recognised at the end of the year
10,175
10,138
Dividends franking account (based on a tax rate of 30%)
Franking credits available for future years, adjusted for franking credits and debits that
will arise from the settlement of liabilities or receivables for income tax and dividends
after the end of the year
1,799
1,411
(1) The final dividend paid of 5 cents per share franked to 1.5 cents, comprised of a regular dividend of 5 cents per share.
(2) The interim dividend paid of 5 cents per share franked to 2.3 cents, comprised of a regular dividend of 5 cents per share.
(3) The interim dividend of 5 cents per share, unfranked, comprised of a regular dividend of 5 cents per share.
22. Reserves and retained earnings
Note
2024
$’000
2023
$’000
Foreign currency translation reserve
22(a)
1,707
7,259
Share-based payments reserve
22(b)
13,440
12,285
Retained earnings
22(c)
171,399
170,648
(a) Foreign currency translation reserve
This reserve is used to record the exchange differences arising on translation of a foreign entity.
Movements in reserve
Note
2024
$’000
2023
$’000
Balance at 1 July
7,259
7,536
Exchange differences on translation of foreign operations
(5,552)
(277)
Balance at 30 June
1,707
7,259
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
126
Annual Report 2024
Hansen Technologies Ltd
(b) Share-based payments reserve
This reserve is used to record the fair value of options and performance rights issued to employees as part of their remuneration.
Movements in reserve
Note
2024
$’000
2023
$’000
Balance at 1 July
12,285
10,629
Share-based payments expensed during the year
17(c)
1,080
1,528
Tax associated with the share-based payments plan
6(b)(iv)
75
128
Balance at 30 June
13,440
12,285
(c) Retained earnings
Movements in retained earnings
Note
2024
$’000
2023
$’000
Balance at 1 July
170,648
148,086
Dividends declared during the year
(20,313)
(20,233)
Net profit after income tax expense for the year
21,064
42,795
Balance at 30 June
171,399
170,648
23. Commitments and contingencies
Commitments on leases
Lease commitments are disclosed in Note 13(e) and Note 18.
Contingent assets and liabilities
At 30 June 2024 and 2023, the Group does not have any contingent assets and liabilities.
127
Annual Report 2024
Hansen Technologies Ltd
SECTION F: GROUP STRUCTURE
This section provides information about our structure and how this impacts the Group’s results as a whole, including parent
entity information and any business acquisitions that impacted the Group’s financial position and performance.
24. Parent entity information
Presented below are the summary financial statements of the parent Company, Hansen Technologies Limited:
(a) Summarised statement of financial position
Parent Entity
2024
$’000
2023
$’000
Assets
Current Assets
703
360
Non-current assets
195,406
190,636
Total Assets
196,109
190,996
Liabilities
Current liabilities
2,265
557
Non-current liabilities
15,367
11,753
Total Liabilities
17,632
12,310
Net assets
178,477
178,686
Equity
Share capital
150,599
148,688
Accumulated profits
15,754
19,029
Share based payments reserve
13,440
12,285
Foreign currency translation reserve
(1,316)
(1,316)
Total equity
178,477
178,686
(b) Summarised statement of comprehensive income
Parent Entity
2024
$’000
2023
$’000
Profit after income tax expense
16,945
16,454
Total comprehensive income for the year
16,945
16,454
Dividends of $16,991,000 (2023: $17,456,900) were paid from Hansen Corporation Pty Limited to Hansen Technologies Limited
during the financial year.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
128
Annual Report 2024
Hansen Technologies Ltd
(c) Parent entity guarantees
Hansen Technologies Limited, being the parent entity, has a syndicated multi-currency borrowing facility (refer to Note 19) of which
Hansen Corporation Pty Limited and other subsidiaries of the Company are joint guarantors to that facility agreement. A Deed of
Parent Guarantee and Indemnity also exists between Hansen Technologies Limited and Hansen Technologies Canada Inc, a wholly-
owned subsidiary, in favour of a financing company based in Canada for a credit card facility. In addition, there are cross guarantees
given by Hansen Technologies Limited and Hansen Corporation Pty Limited as described in Note 28.
No deficiencies of assets exist in any of these companies.
Material accounting policies
The financial information for the parent Company has been prepared on the same basis as the Group consolidated financial
statements, except as set out below:
Investments in subsidiaries
Investments in subsidiaries are accounted at cost. Dividends received from subsidiaries are recognised in the parent entity’s
statement of comprehensive income when its right to receive the dividend is established.
Where the parent Company has provided financial guarantees in relation to loans and payables of subsidiaries for no
compensation, the fair value of these guarantees is accounted for as contributions and recognised as part of the cost
of the investment.
129
Annual Report 2024
Hansen Technologies Ltd
25. Business combinations
Acquisition of powercloud GmbH
On 12 February 2024, Hansen acquired 100% of the shares of powercloud GmbH (powercloud) for a total purchase consideration
of $29.4m. Further, an equity injection of $24.9 million was provided on the same day. Of this amount, $8.9 million was used to
facilitate the settlement towards an existing shareholder loan. The balance of $15.4 million was utilised for initial working capital
purposes. The acquisition was fully funded via debt, by utilising an existing syndicated multi-currency facility on the same pricing
terms as the existing Hansen debt obligation that is currently in place, expiring in July 2025.
Founded in 2012, powercloud is a leading provider of mission-critical billing and customer management software products serving
tier-1 and 2 utility companies and regional municipalities across Germany. powercloud supports 65+ customers, including many
of the largest Germany utility retailers. This acquisition will significantly expand Hansen’s scale and scope in the utilities sector,
in addition to the depth of the existing operational presence in Germany, Austria and Switzerland.
Details of the purchase consideration, the net assets acquired are as follows:
Purchase consideration
$‘000
Cash Paid
29,372
Total purchase consideration
29,372
As at 30 June 2024, the fair values of the identifiable assets and liabilities acquired as at the date of acquisition are still provisional in
light of the timing of the transaction. The acquisition accounting will be finalised within 12 months of the acquisition date, in line with
accounting standards. Provisional net assets and liabilities acquired are detailed below:
Provisional
fair value
$‘000
Assets acquired:
Cash
47,543
Receivables
7,992
Prepayments and other current assets
4,048
Intangibles
27,973
Plant and equipment
650
Right-of-use assets
5,390
Total assets acquired
93,596
Liabilities acquired:
Payables
10,279
Accruals and provisions
14,699
Unearned revenue
9,381
Shareholder loan
56,474
Lease liability
5,390
Deferred tax liability
8,488
Total liabilities acquired
104,711
Net identifiable (liability) acquired
(11,115)
Add:
Goodwill arising on acquisition
40,487
Total purchase consideration
29,372
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
130
Annual Report 2024
Hansen Technologies Ltd
Goodwill arose on the acquisition of powercloud due to the combination of the consideration paid for the business and the net
assets acquired. The value of goodwill represents the strong positioning of powercloud in the energy market and includes the future
benefit arising from the expected future earnings, synergies with the Group’s products and operations and personnel assumed via
the acquisition. None of the goodwill is expected to be deductible for tax purposes.
The fair value of trade receivables is $8 million. The gross contractual amount for trade receivables due is $10.5 million, of which
$2.5 million is potentially uncollectible.
Transaction costs
Transaction costs of $519,000 were incurred in relation to the acquisition. These are identified as separately disclosed items for
this year’s results. Refer to Note 4 for further information.
Revenue and loss contribution
From the date of acquisition, powercloud has contributed $18.5 million of revenue and a loss of $13.4 million to the Group’s
consolidated results. If the acquisition of powercloud had occurred on 1 July 2023, powercloud would have contributed revenue
of $51.8 million and a loss after tax of $38.4 million. It is important to note that viewing this performance in isolation is not reflective
of the ongoing performance of the acquired business.
Analysis of cash flow on acquisition
$‘000
Outflow of cash to acquire subsidiary
Cash consideration
29,372
Add:
Settlement of shareholder loan
8,931
Net cash outflow of cash – investing activities
38,303
131
Annual Report 2024
Hansen Technologies Ltd
25. Business combinations (continued)
Material accounting policies
Business combinations
A business combination is a transaction or other event in which an acquirer obtains control of one or more businesses and
results in the consolidation of the assets and liabilities acquired. Business combinations are accounted for by applying the
acquisition method.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued, or liabilities incurred by the acquirer to former owners of the acquiree. Deferred consideration payable is measured
at its acquisition date fair value. At each reporting date subsequent to the acquisition, contingent consideration payable is
measured at its fair value with any changes in the fair value recognised in profit or loss unless the contingent consideration
is classified as equity, in which case the contingent consideration is carried at the acquisition-date fair value.
Goodwill is recognised initially at the excess of: (a) the aggregate of the consideration transferred, the fair value of the
non-controlling interests and the acquisition date fair value of the acquirers previously held equity interest; over (b) the net fair
value of the identifiable assets acquired and liabilities assumed.
Acquisition-related costs are expensed as incurred.
Critical accounting estimate and judgement
Business combinations
The Group is required to determine the acquisition date and fair value of the identifiable net assets acquired, including intangible
assets such as brands, customer relationships, software and liabilities assumed. The estimated useful lives of the acquired
amortisable assets, the identification of intangibles and the determination of the indefinite or finite useful lives of intangible assets
acquired are assessed based on management’s judgement. The Group reassesses the fair value of net assets acquired a year
after the acquisition date and judgement is required to ensure that any adjustments made reflect new information obtained
about facts and circumstances that existed as of the acquisition date. The adjustments made to fair value of net assets are
retrospective in nature and have an impact on goodwill recognised on acquisition.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
132
Annual Report 2024
Hansen Technologies Ltd
SECTION G: OTHER DISCLOSURES
This section includes other disclosures not included in the other sections, for example the Group’s auditor’s remuneration,
related parties, impact of new accounting standards not yet effective and subsequent events.
26. Related party disclosures
(a) List of controlled entities
The Group’s consolidated financial statements include the financial statements of Hansen Technologies Limited and the controlled
entities below:
Ordinary Shares Equity Interest
Name
Country of
Incorporation
2024
%
2023
%
Parent entity
Hansen Technologies Limited
Australia
Subsidiaries of Hansen Technologies Limited
Hansen Corporation Pty Limited
Australia
100
100
Hansen Corporation Investments Pty Limited
Australia
100
100
Utilisoft Pty Limited
Australia
100
100
Hansen Technologies (Shanghai) Company Limited
China
100
100
Hansen Technologies Denmark A/S
Denmark
100
100
Hansen Technologies CIS Finland Oy(1)
Finland
–
100
Hansen Technologies Finland Oy
Finland
100
100
PEP Finland Oy
Finland
100
100
powercloud GmbH(2)
Germany
100
–
powercloud France SAS(2)
France
100
–
powercloud Italy S.r.l(2)
Italy
100
–
powercloud Australia Pty Ltd(2)
Australia
100
–
Hansen Customer Support India Private Limited
India
100
100
Hansen Technologies Netherlands B.V.
Netherlands
100
100
Hansen New Zealand Limited
New Zealand
100
100
Hansen Technologies Holdings AS
Norway
100
100
Hansen Technologies Norway AS
Norway
100
100
Hansen Technologies Sweden AB
Sweden
100
100
Enoro AG
Switzerland
100
100
Hansen Corporation Europe Limited
United Kingdom
100
100
Hansen Holdings Europe Limited
United Kingdom
100
100
Hansen Billing Solutions Limited
United Kingdom
100
100
Hansen Solutions, LLC
United States
100
100
Hansen Technologies North America, Inc.
United States
100
100
Hansen ICC, LLC
United States
100
100
Hansen Banner, LLC
United States
100
100
Peace Software Inc.
United States
100
100
Hansen Technologies Vietnam, LLC
Vietnam
100
100
Hansen Technologies Canada, Inc.
Canada
100
100
Sigma Canada Holdings Inc.
Canada
100
100
Sigma Systems GP Inc.
Canada
100
100
Hansen Systems Private Limited (fka Sigma OSS Systems India
Private Limited)
India
100
100
Sigma Systems Japan K.K.
Japan
100
100
Hansen Technologies CDE Limited
United Kingdom
100
100
Sigma Systems (Wales) Limited
United Kingdom
100
100
Hansen Technologies SA
Argentina
100
100
Hansen Technologies Limited Employee Share Plan Trust
Australia
–
–
(1) Upstream Merger of Hansen Technologies CIS Finland Oy into Hansen Technologies Finland Oy effective 29 February 2024.
(2) Acquisition of powercloud took place on 12 February 2024, refer to note 25 for further details.
133
Annual Report 2024
Hansen Technologies Ltd
26. Related party disclosures (continued)
Material accounting policies
Foreign subsidiaries
Subsidiaries that have a functional currency different to the presentation currency of the Group are translated as follows:
• assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
• income and expenses are translated at actual exchange rates or average exchange rates for the period, where
appropriate; and
• all resulting exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign
currency translation reserve as a separate component of equity in the consolidated statement of financial position.
Exchange differences arising on the reduction of a foreign subsidiary’s equity continues to be recognised in the Group’s
foreign currency translation reserve until such time that the foreign subsidiary is disposed of.
(b) Transactions with key management personnel of the entity or its parent and their personally
related entities
The terms and conditions of the transactions with Directors and their Director-related entities were no more favourable than those
available, or which might reasonably be expected to be available, on similar transactions to non-Director-related entities on an arm’s
length basis.
The following table provides the total amount of transactions that were entered into with related parties in respect of leased premises
for the relevant financial year:
2024
$
2023
$
Leased premises
A related party, Andrew Hansen – rental payments
2,670
40,713
2,670
40,713
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
134
Annual Report 2024
Hansen Technologies Ltd
27. Auditor’s remuneration
The auditor of the Group for the year ended 30 June 2024 is RSM Australia Partners.
2024
$
2023
$
(a) Amounts paid and payable to RSM Australia for:
(i) Audit and other assurance services
– an audit and/or review of the Financial Report of the entity and any other entity
in the consolidated entity
412,000
396,000
(ii) Other non-audit services
– compliance services
3,515
13,715
Sub-total
3,515
13,715
Total remuneration of RSM Australia Partners
415,515
409,715
(b) Amounts paid and payable to network firms of RSM Australia for:
(i) Audit and other assurance services
– an audit and/or review of the Financial Report of the overseas entities
in the consolidated entity
508,127
364,402
(ii) Other non-audit services
– taxation services
50,279
39,636
– compliance services
56,548
48,149
Sub-total
106,827
87,785
Total remuneration of network firms of the auditor
614,954
452,187
(c) Amounts paid and payable to non-related auditors for:
(i) Audit and other assurance services
– an audit and/or review of the Financial Report of the entity and any other
entities in the consolidated entity
108,805
86,147
(ii) Other non-audit services
– taxation services
70,666
61,546
– ESG framework and policy review
56,000
–
– compliance services
28,228
51,690
Sub-total
154,894
113,236
Total remuneration of non-related auditors
263,699
199,383
Total auditors’ remuneration
1,294,168
1,061,285
135
Annual Report 2024
Hansen Technologies Ltd
28. Deed of cross guarantee
Hansen Technologies Limited and Hansen Corporation Pty Limited are parties to a deed of cross guarantee under which each
company guarantees the debts of the other. By entering into the deed, the wholly-owned entities have been relieved from the
requirement to prepare a financial report and directors’ report under ASIC Corporations (Wholly-owned Companies) Instrument
2016/785 issued by the Australian Securities and Investments Commission.
The above companies represent a ‘closed group’ for the purposes of the Class Order, and as there are no other parties to the deed
of cross guarantee that are controlled by Hansen Technologies Limited, they also represent the ‘extended closed group’.
(a) Consolidated statement of comprehensive income
Set out below is a consolidated statement of comprehensive income for the financial year ended 30 June 2024 of the closed group
consisting of Hansen Technologies Limited and Hansen Corporation Pty Limited (“the Closed Group”).
Note
2024
$’000
2023
$’000
Revenue
56,753
50,291
Other income
47,360
30,655
Total revenue and other income
104,113
80,946
Employee benefit expenses
(34,165)
(26,898)
Depreciation expense
(2,502)
(2,966)
Amortisation expense
(5,575)
(4,641)
Property and operating rental expenses
(1,328)
(1,561)
Contractor and consultant expenses
(1)
(10)
Software licence expenses
(1,357)
(1,441)
Hardware and software expenses
(9,084)
(8,557)
Travel expenses
(1,091)
(810)
Communication expenses
(576)
(416)
Professional expenses
(2,454)
(2,058)
Finance costs on borrowings
(515)
(1,130)
Finance costs on lease liabilities
6
(100)
Foreign currency losses
(155)
(489)
Other expenses
(2,790)
(602)
Total expenses
(61,587)
(51,679)
Profit before income tax expense
42,526
29,267
Income tax expense
(3,586)
(2,987)
Profit after income tax expense
38,940
26,280
Total comprehensive income for the year
38,940
26,280
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
136
Annual Report 2024
Hansen Technologies Ltd
(b) Consolidated statement of financial position
Set out below is a consolidated statement of financial position as at 30 June 2024 of the Closed Group:
Note
2024
$’000
2023
$’000
Current assets
Cash and cash equivalents
7,111
7,106
Receivables
9,264
9,266
Accrued revenue
14,536
2,904
Other current assets
3,021
3,938
Total current assets
33,932
23,214
Non-current assets
Plant, equipment & leasehold improvements
6,520
6,093
Intangible assets
26,061
29,229
Right-of-use assets
1,781
2,550
Other non-current assets
259,814
214,950
Deferred tax assets
3,914
3,101
Total non-current assets
298,090
255,923
Total assets
332,022
279,137
Current liabilities
Payables
14,103
11,751
Lease liabilities
798
1,247
Current tax payable
1,994
365
Provisions
6,433
5,804
Unearned income
7,559
5,972
Total current liabilities
30,887
25,139
Non-current liabilities
Deferred tax liabilities
4,857
6,153
Borrowings
14,931
11,417
Lease liabilities
1,496
1,543
Provisions
188
109
Total non-current liabilities
21,472
19,222
Total liabilities
52,359
44,361
Net assets
279,663
234,776
Equity
Share capital
173,849
148,688
Foreign currency translation reserve
(1,340)
(1,340)
Share-based payments and other reserves
9,917
8,818
Retained earnings
28(c)
97,237
78,610
Total equity
279,663
234,776
137
Annual Report 2024
Hansen Technologies Ltd
28. Deed of cross guarantee (continued)
(c) Summary of movements in consolidated retained earnings of the Closed Group
Note
2024
$’000
2023
$’000
Retained earnings at the beginning of the year
78,610
72,563
Profit for the year
28(a)
38,940
26,280
Dividends declared during the year
(20,313)
(20,233)
Retained earnings at the end of the year
28(b)
97,237
78,610
29. New and amended accounting standards and interpretations
(a) Adoption of new and amended accounting standards that are first operative at 30 June 2024
The Group has adopted the following amended accounting standards and interpretations, applicable and effective for the financial
year beginning 1 July 2023:
• Amendments to AASB 101 will require disclosure of material accounting policy information, instead of significant accounting
policies. The term ‘significant’ has never been defined in Australian Accounting Standards unlike ‘material’, thus the amendment
attempts to leverage the existing definition of material with guidance to assist financial statement preparers determine appropriate
accounting policy disclosures.
• Changes to AASB Practice Statement 2 supplement the amendments to AASB 101 by providing guidance on how to identify
material accounting policy information.
• Amendments to AASB 108 seek to clarify the definition of an accounting estimate, making it easier to differentiate it from an
accounting policy given the difference between treatment and disclosure requirements are different. The amendments clarify that
‘Accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty’, explaining
that a change in an input or a measurement technique used in developing an accounting estimate is considered a change in an
accounting estimate.
• Amendments to AASB 112 to clarify the accounting for deferred tax on transactions that, at the time of transaction, give rise to
equal taxable and deductible temporary differences. In specified circumstances, entities are exempt from recognising deferred
tax when they recognise assets or liabilities for the first time. The amendments clarify that the exemption does not apply to
transactions for which entities recognise both an asset and a liability and that give rise to equal taxable and deductible temporary
differences. This may be the case for transactions such as leases and decommissioning, restoration and similar obligations.
Entities are required to recognise deferred tax on such transactions.
These new and amended accounting standards do not have a material impact on the financial report and therefore the disclosures
have not been made. The Group has not early adopted any other standard, interpretation or amendment that has been issued but
is not yet effective. Where necessary, comparative information has been reclassified and repositioned for consistency with current
year disclosures.
The Group has adopted the following amendment to the Corporations Act 2001, applicable for financial statements for years ending
30 June 2024:
New Consolidated Entity Disclosure Statement
This reflects the implementation of changes originally announced in the October 2022 Federal Budget, which indicated that public
companies would need to disclose information on all of their subsidiaries, including their country of tax domicile. This has now
been achieved by amending the Corporations Act 2001 to require all public companies to include this information in their annual
financial report.
• The new Consolidated Entity Disclosure statement has been disclosed in page 140. In addition, the directors’ declaration has
included a statement that the Consolidated Entity Disclosure statement is “true and correct”.
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2024 CONTINUED
138
Annual Report 2024
Hansen Technologies Ltd
(b) Accounting standards and interpretations issued but not operative at 30 June 2024
The following new and revised accounting standards and interpretations have been issued by the Australian Accounting Standards
Board at the reporting date, which are considered relevant to the Group but are not yet effective. The Directors’ assessment of the
impact of these standards and interpretations is set out below:
(i) Amendments to AASB 101: Amendments to Australian Accounting Standards – Non-current Liabilities
with Covenants
The standard amends AASB 101 to improve the information an entity provides in its financial statements about liabilities arising from
loan arrangements for which the entity’s right to defer settlement of those liabilities for at least twelve months after the reporting
period is subject to the entity complying with conditions specified in the loan arrangement.
Group’s assessment performed to date
The amendments are effective for annual reporting period beginning 1 July 2024 and require an additional statement included
to the notes. The amendments are not expected to have a material impact to the Group.
(ii) New standard AASB 18 Presentation and Disclosure in Financial Statements to replace AASB 101 Presentation
of Financial Statements
AASB 18 will enable companies to tell their story better through their financial statements. Investors will benefit from greater
consistency of presentation of the income and cash flow statements, and more disaggregated information. Companies’ net profit
will not change. AASB 18 requires all companies to:
• classify income and expenses between operating, investing and financing, and to report a newly defined subtotal,
“operating profit”
• disclose certain “non-GAAP” measures – management performance measures (MPMs) – in a note to the financial statements,
meaning that they will now be subject to audit – eg “adjusted EBITDA; and improve how they aggregate information.
Group’s assessment performed to date
The amendments are effective for annual reporting periods beginning on or after 1 July 2027, this will have an impact to the
presentation and structure of the financial statements with the full extent of the changes being assessed by the Group.
30. Subsequent events
The Directors resolved to pay a final dividend of 5 cents per share (franked to 2.1 cents), comprising of a regular dividend of 5 cents
per share to be paid on 20 September 2024 (Note 21).
Apart from the above, there has been no other matter or circumstance which has arisen since 30 June 2024 that has significantly
affected or may significantly affect:
(i) the operations, in financial years subsequent to 30 June 2024, of the Group; or
(ii) the results of those operations; or
(iii) the state of affairs, in financial years subsequent to 30 June 2024, of the Group.
139
Annual Report 2024
Hansen Technologies Ltd
Name of entity(1)
Type of entity
% of share
capital
Country of
incorporation
Australian
resident
or foreign
resident
Countries of
residence for tax
purpose
Hansen Technologies Limited
Body corporate
100
Australia
Australian
Australia
Hansen Corporation Pty Limited
Body corporate
100
Australia
Australian
Australia
Hansen Corporation Investments Pty
Limited
Body corporate
100
Australia
Australian
Australia
Utilisoft Pty Limited
Body corporate
100
Australia
Australian
Australia
Hansen Technologies (Shanghai)
Company Limited
Body corporate
100
China
Foreign
China
Hansen Technologies Denmark A/S
Body corporate
100
Denmark
Foreign
Denmark
Hansen Technologies Finland Oy
Body corporate
100
Finland
Foreign
Finland
PEP Finland Oy
Body corporate
100
Finland
Foreign
Finland
powercloud GmbH
Body corporate
100
Germany
Foreign
Germany
powercloud France SAS
Body corporate
100
France
Foreign
France
powercloud Italy S.r.l
Body corporate
100
Italy
Foreign
Italy
powercloud Australia Pty Ltd
Body corporate
100
Australia
Australian
Australia
Hansen Customer Support India Private
Limited
Body corporate
100
India
Foreign
India
Hansen Technologies
Netherlands B.V.
Body corporate
100
Netherlands
Foreign
Netherlands
Hansen New Zealand Limited
Body corporate
100
New Zealand
Foreign
New Zealand
Hansen Technologies Holdings AS
Body corporate
100
Norway
Foreign
Norway
Hansen Technologies Norway AS
Body corporate
100
Norway
Foreign
Norway
Hansen Technologies Sweden AB
Body corporate
100
Sweden
Foreign
Sweden
Enoro AG
Body corporate
100
Switzerland
Foreign
Switzerland
Hansen Corporation Europe Limited
Body corporate
100
United Kingdom
Foreign
United Kingdom
Hansen Holdings Europe Limited
Body corporate
100
United Kingdom
Foreign
United Kingdom
Hansen Billing Solutions Limited
Body corporate
100
United Kingdom
Foreign
United Kingdom
Hansen Solutions, LLC
Body corporate
100
United States
Foreign
United States
Hansen Technologies North America,
Inc.
Body corporate
100
United States
Foreign
United States
Hansen ICC, LLC
Body corporate
100
United States
Foreign
United States
Hansen Banner, LLC
Body corporate
100
United States
Foreign
United States
Peace Software Inc.
Body corporate
100
United States
Foreign
United States
Hansen Technologies Vietnam, LLC
Body corporate
100
Vietnam
Foreign
Vietnam
Hansen Technologies Canada, Inc.
Body corporate
100
Canada
Foreign
Canada
Sigma Canada Holdings Inc.
Body corporate
100
Canada
Foreign
Canada
Sigma Systems GP Inc.
Body corporate
100
Canada
Foreign
Canada
Hansen Systems Private Limited (fka
Sigma OSS Systems India Private
Limited)
Body corporate
100
India
Foreign
India
Sigma Systems Japan K.K.
Body corporate
100
Japan
Foreign
Japan
Hansen Technologies CDE Limited
Body corporate
100
United Kingdom
Foreign
United Kingdom
Sigma Systems (Wales) Limited
Body corporate
100
United Kingdom
Foreign
United Kingdom
Hansen Technologies SA
Body corporate
100
Argentina
Foreign
Argentina
Hansen Technologies Limited Employee
Share Plan Trust
Trust
–
Australia
Australian
Australia
(1) None of the above entities are a trustee, partner or a participant in a joint venture.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2024
140
Annual Report 2024
Hansen Technologies Ltd
DIRECTORS’ DECLARATION
The Directors declare that the financial statements and notes set out on pages 79 to 139, in accordance with the
Corporations Act 2001:
• comply with Accounting Standards and the Corporations Regulations 2001, and other mandatory professional
reporting requirements;
• as stated in Note 1(a), the consolidated financial statements of the Group also comply with International Financial Reporting
Standards; and
• give a true and fair view of the financial position of the consolidated entity as at 30 June 2024 and of its performance for the year
ended on that date.
• that the consolidated entity disclosure statement set out in page 140 is true and correct as at 30 June 2024.
In the Directors’ opinion there are reasonable grounds to believe that Hansen Technologies Limited will be able to pay its debts as
and when they become due and payable.
At the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified
in Note 28 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross
guarantee described in Note 28.
This declaration has been made after receiving the declarations required to be made by the Managing Director and Chief Financial
Officer to the Directors in accordance with sections 295A of the Corporations Act 2001 for the financial year ended 30 June 2024.
This declaration is made in accordance with a resolution of the Directors.
David Trude
Andrew Hansen
Chair
Global CEO and Managing Director
Melbourne
21 August 2024
141
Annual Report 2024
Hansen Technologies Ltd
INDEPENDENT AUDITOR’S REPORT
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RSM Australia Partners
Level 27, 120 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Hansen Technologies Limited
Opinion
We have audited the financial report of Hansen Technologies Limited (the Company) and its controlled entities
(the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
material accounting policy information, the consolidated entity disclosure statement and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii) 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 (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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
142
Annual Report 2024
Hansen Technologies Ltd
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed this matter
Recognition of Revenue
Refer to Note 3 in the financial statements
Revenue recognition was considered a key audit matter,
as it is complex and involves significant management
judgements.
The Group’s revenue is primarily derived from the
provision of billing solution services to customers,
maintenance and support, and licences. Revenue
determined for some of the service contracts is based on
stage of completion, calculated on the proportion of total
costs incurred at the reporting date compared to
management’s estimation of the total costs of the contract.
Our audit procedures in relation to the recognition of revenue
included:
•
Assessing whether the Group’s revenue recognition
policies
were
in
compliance
with
Australian
Accounting Standards;
•
Evaluating and testing the operating effectiveness of
management’s
controls
related
to
revenue
recognition;
•
Performing substantive analytical procedures over
key revenue streams;
•
For a sample of revenue transactions, substantiating
transactions
by
agreeing
to
supporting
documentation, including contracts with customers;
•
For a sample of revenue transactions that were
recognised on a percentage of completion basis, our
testing included:
–
Agreeing the contract price and variations to
customer contracts;
–
Assessing management’s estimate of costs to
complete; and
–
Assessing whether the project was within
budgeted margin.
•
Reviewing sales transactions before and after year-
end to ensure that revenue was recognised in the
correct period; and
•
Reviewing large or unusual transactions during the
financial year.
143
Annual Report 2024
Hansen Technologies Ltd
INDEPENDENT AUDITOR’S REPORT CONTINUED
Impairment of Intangible Assets
Refer to Note 12 in the financial statements
The Group has net book value goodwill of $256 million in
respect of acquisitions of subsidiaries as at 30 June 2024.
We identified this area as a Key Audit Matter due to the
size of the goodwill balance, and because the directors’
assessment of the ‘value in use’ of the cash generating unit
(“CGU”) involves significant judgements about the future
underlying cash flows of the business, discount rates and
terminal growth applied.
For the year ended 30 June 2024 management have
performed an impairment assessment over the goodwill
balance by:
•
Calculating the value in use for the CGU using a
discounted cash flow model. The model used
cash flows (revenues, expenses and capital
expenditure) for the CGU for 5 years, with a
terminal growth rate applied to the 5th year. The
cash flows were then discounted to net present
value using the Company’s weighted average
cost of capital (WACC); and
•
Comparing the resulting value in use of the CGU
to its respective book value.
Management also performed a sensitivity analysis over the
value in use calculations, by varying the WACC and other
assumptions.
Our audit procedures in relation to management’s impairment
assessment involved the assistance of our Corporate Finance
team where required, and included:
•
Assessing management’s determination that the
goodwill should be allocated to a single CGU based
on the nature of the Group’s business and the
manner in which results are monitored and reported;
•
Assessing the valuation methodology used;
•
Challenging the reasonableness of key assumptions,
including the cash flow projections, exchange rates,
discount rates, and sensitivities used; and
•
Checking the mathematical accuracy of the cash flow
model, and reconciling input data to supporting
evidence,
such
as
approved
budgets
and
considering the reasonableness of these budgets.
Accounting for Business Combination
Refer to Note 25 in the financial statements
On 12 February 2024, Hansen acquired 100% of the
shares of powercloud GmbH (powercloud) for a total
purchase consideration of $29.4 million.
This is considered a Key Audit Matter as accounting for
such a transaction is complex and involves significant
judgement in applying the accounting standards. This
includes the measurement and recognition of identifiable
assets and liabilities acquired at their acquisition date fair
values. There is also a risk that sufficient and accurate
disclosures are not made in accordance with the
accounting standards.
Our audit procedures included:
•
Assessing
the
purchase
agreement
and
other
associated
documents
and
ensuring
that
the
transactions had been accounted for in accordance with
AASB 3 Business Combinations;
•
Assessing the consideration to the signed purchase
agreement;
•
Reviewing management’s estimates in relation to the
purchase price allocation, including measurement and
recognition of intangible assets, and the resulting
goodwill; and
•
Reviewing the disclosures made in the financial
statements is in accordance with the accounting
standards.
144
Annual Report 2024
Hansen Technologies Ltd
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2024, but does not include the financial report and the
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.
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.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b. the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
and is free from material misstatement, whether due to fraud or error; and
ii. the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf .
This description forms part of our auditor's report.
145
Annual Report 2024
Hansen Technologies Ltd
INDEPENDENT AUDITOR’S REPORT CONTINUED
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2024.
In our opinion, the Remuneration Report of Hansen Technologies Limited, for the year ended 30 June 2024,
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.
RSM AUSTRALIA PARTNERS
M PARAMESWARAN
Partner
Dated: 21 August 2024
Melbourne, Victoria
146
Annual Report 2024
Hansen Technologies Ltd
ASX SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 7 August 2024 disclosed pursuant to ASX official listing requirements.
Distribution of shares
The following tables summarises the distribution of our listed shares as at 7 August 2024:
Range
Number of
holders
Number of
shares held
% of issued
capital
100,001 and over
69
155,613,080
76.47
10,001 to 100,000
1,222
29,635,657
14.56
5,001 to 10,000
1,182
8,681,713
4.27
1,001 to 5,000
3,167
8,574,602
4.21
1 to 1,000
2,402
1,004,389
0.49
Total
8,042
203,509,441
100.00
The number of shareholders holding less than a marketable parcel of ordinary shares is 539 holding 20,220 shares (as at the closing
market price on 7 August 2024).
Twenty largest shareholders
The following table sets out the top 20 holders of our shares:
Range
Number of
shares held
% of issued
capital
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
49,966,222
24.55
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
29,652,346
14.57
OTHONNA PTY LIMITED
27,739,113
13.63
CITICORP NOMINEES PTY LIMITED
20,679,647
10.16
NATIONAL NOMINEES LIMITED
3,616,013
1.78
BNP PARIBAS NOMS PTY LTD
2,751,468
1.35
BNP PARIBAS NOMINEES PTY LTD
1,723,963
0.85
PACIFIC CUSTODIANS PTY LIMITED
1,373,972
0.68
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1,287,951
0.63
MR CAMERON SCOTT HUNTER
1,286,009
0.63
BNP PARIBAS NOMINEES PTY LTD
1,239,860
0.61
SANDHURST TRUSTEES LTD
886,346
0.44
MR JAMES LUCAS & MS LESLEY DORMER
800,939
0.39
SCOTT WEIR
634,049
0.31
MRS LILIAN REICHENBERG
546,953
0.27
NETWEALTH INVESTMENTS LIMITED
526,474
0.26
CITICORP NOMINEES PTY LIMITED
470,361
0.23
PACIFIC CUSTODIANS PTY LIMITED
458,692
0.23
LAYUTI PTY LTD
420,612
0.21
MR DAVID JOHN OSBORNE & MS LEONE CATHERINE OSBORNE
386,335
0.19
Total
146,447,325
71.97
Total other investors
57,062,116
28.03
Grand total
203,509,441
100.00
147
Annual Report 2024
Hansen Technologies Ltd
Substantial shareholdings
The following table shows holdings of substantial voting rights in the Company’s shares as notified to the Company under the
Corporations Act 2001 as at 31 July 2024:
Holder
Number of
shares held
% of issued
capital
Mr Andrew Hansen*
28,434,876
13.97%
Mr David Osborne*
28,125,448
13.82%
Mr Bruce Adams*
27,891,417
13.71%
*
Each of these named persons has a joint interest in a single parcel of 27,739,113 shares as at the date of this report.
Voting rights
Refer to Note 20(c) of the financial statements.
Unquoted equity securities
Unquoted equity securities issued pursuant to the Hansen Technologies Limited Employee Performance Rights Plan as at
15 August 2024:
Range
Number of
employees
participating
Number of
securities
Performance rights
41
1,148,903
ASX SHAREHOLDER INFORMATION CONTINUED
148
Annual Report 2024
Hansen Technologies Ltd
CORPORATE DIRECTORY
Directors
David Trude, Chairperson
Andrew Hansen, Global CEO and Managing Director
Bruce Adams, Non-Executive
Lisa Pendlebury, Non-Executive
Don Rankin, Non-Executive
David Osborne, Non-Executive
David Howell, Non-Executive
Rebecca Wilson, Non-Executive
Company secretary
Julia Chand
Principal registered office
Level 13, 31 Queen Street
Melbourne, Victoria 3000
T (03) 9840 3000
F (03) 9840 3099
Share registry
Link Market Services Limited
Tower 4, 727 Collins Street
Melbourne, Victoria 3000
T 1300 554 474
F (02) 9287 0309 – Proxy forms
F (02) 9287 0303 – General
Stock exchange
The Company is listed on the Australian Stock Exchange
ASX code: HSN
Auditors
RSM Australia Partners
Level 27, 120 Collins Street
Melbourne, Victoria 3000
Solicitors
GrilloHiggins
Level 25, 367 Collins Street
Melbourne, Victoria 3000
Other information
Hansen Technologies Ltd ABN 90 090 996 455,
incorporated and domiciled in Australia,
is a publicly listed company limited by shares.
149
Annual Report 2024
Hansen Technologies Ltd