Reset
Refocus
Build
Annual Report 2023
We harness the power
of technology to enable
a smarter financial
system that delivers more
for everyone.
Strategic Report
ESG
Financial Report
1
Our values
Go Beyond
We dream big and
nothing is off the table.
From our people, to our
market‑leading ideas and
how we connect with and
deliver for our customers;
a growth mindset is part
of our fabric.
Act Smart
We act with integrity,
ensuring there are no
surprises. We use our
collective knowledge to
strive for excellence while
delivering industry‑leading
software and services
that consistently impress
our customers.
Win Together
We’re one team that
has each other’s back.
We bring our A‑game,
take ownership and
follow up; with our
shareholders, customers
and community always
at heart.
AGM details
The AGM will be a hybrid event, with the
option to attend online or in person on:
Thursday 2 May 2024
11.30am AEST
King & Wood Mallesons
Level 27, 447 Collins Street
Melbourne VIC 3000, Australia
Acknowledgement of Country
We pay our respects to the Traditional
Owners of the lands where we work as
well as across the lands through which
we travel. We recognise Indigenous
Peoples’ continuing connection to land,
place, waters and community. We pay our
respects to their cultures, Country, and
elders past, present and emerging.
Contents
Strategic Report
2
2023 highlights
4
6
8
Business overview
Letter from the CEO & Chair
Our vision & strategy
ESG Report
Financial Report
10
Environmental, Social &
Governance Report
14
Environmental
20
Social
36
Governance
40
Iress leadership
42
Board of Directors
44
Material business risks
46 Operating & Financial Review
50
Directors’ Report
52
Remuneration Report
82
Auditor’s Independence Declaration
83
Financial Statements
130
Directors’ Declaration
131
Independent Auditor’s Report
136
Shareholder information
137
Corporate directory
Iress LimitedAnnual Report 2023
2
2023 Highlights
Strategic Report
3
Financial
Delivered at top end
of revised guidance.
Revenue up 2%
on previous year,
through growth in
Superannuation and
the UK.
Operating revenue AUD (m)
2023
2022
$625.7m
$615.6m
+2%
on 2022
Segment overview
APAC Wealth Management
APAC Trading & Market Data
Superannuation
UK
Managed Portfolio – Other
$94.7m
$167.9m
$626m
Revenue
$54.2m
$130.4m
$178.5m
Shareholder
Net Profit After Tax (NPAT)
Earnings per share (EPS)
Underlying EBITDA
Innovation
• Launched editorial and discussion platform, Advisely, to
improve business efficiency amongst financial advisers.
• Launched Iress FIX Hub, a cloud‑native financial information
exchange platform.
• Exploring opportunities in data & AI.
People and culture
Transformation
A new remuneration model
and an evolved performance
framework has been
launched in 2024 to drive
growth, development and
performance, and align the
contribution of everyone
to annual and quarterly
objectives.
Almost 12,000 ‘Long
Weekend’ days were taken by
our people globally in 2023.
Iress’ ‘Long Weekend’ will be
continued in 2024 – with the
added flexibility of being able
to take a ‘Long Weekend’ on
your birthday.
ESG
• The Science Based Targets initiative approved Iress’ near‑term
emissions reduction targets.
• New emissions management system.
• Initiation of Reflect Reconciliation Action Plan & working group.
• Modern slavery risk identification & toolkit development.
• UX Scholarship for two refugee women.
Significant year of change, with announcement of refreshed
strategy and clear actions to reset Iress’ cost and asset base,
refocus on core businesses while managing non‑strategic
businesses for value and innovating to build future growth.
1,900
people restructured to product‑led business units, with
refreshed leadership team driving end‑to‑end accountability
and improved performance.
15% reduction in headcount
as at 31 December 2023 vs 31 December 2022. Total headcount
reduction of 21% when MFA divestment included.
Five‑year plans
in place for business units with a focus on customers to further
improve customer satisfaction scores.
$50.5m (AUD)
MFA business sold for $50.5m, and a clear program for
divestments of Platforms and Mortgages businesses.
(137.5m)
2023
(76.4c)
2023
2023
$128.3m
Iress Impact
2022
$52.7m
2022
28.6c
2022
$146.4m
Statutory loss attributable to non‑cash amortisation, depreciation, de‑recognition and impairment
expense of $180.4m. This was notably impacted by an impairment of $130.2m on the UK goodwill
carrying value which was written down in the first half of the year, as well as the de‑recognition of
capitalised software intangible assets and one‑off expenses related to transformation.
Iress Impact was established in 2017 to support charities, predominantly
through fundraising and workplace giving. The guiding principles remain
relevant today: facilitate, support and promote people engagement, while
making a visible, reliable, and meaningful contribution to partner charities.
500
volunteering hours
$266k
(AUD) donated
86
charities supported
Iress LimitedESGFinancial ReportAnnual Report 2023Strategic Report
4
Strategic Report
ESG
Financial Report
5
Business overview
Iress is a leading technology company, designing and
developing software and services for the financial
services industry. Iress operates across Asia Pacific,
the United Kingdom & Europe, Africa and North America.
Our people and locations across the globe
1,900
People
52
North America
623
UK & Europe
164
Africa
1,061
Asia Pacific
Software and clients
Our clients range from small retail to large institutional
businesses across the financial services industry. Our technology
sits at the centre of our clients’ businesses, supporting their core
operations with essential infrastructure and functionality, helping
them to deliver to their clients, members and customers.
3.2b
in trade orders
processed in
Australia annually
Financial advice
Trading and
market data
Investment
management
Superannuation
Mortgages
$A45trn+
in trade volumes
annually in Australia
38,000
Australian Xplan users
3m+
Super member accounts
Software
Integrated financial advice
software including:
• client management
• business automation
• portfolio data
• research
Global market data and trading
software including:
• market data
• trading interfaces
• order and execution management
• smart order routing
• FIX services
• portfolio management
Global investment management
and trading software including:
• portfolio management
• order and execution management
services
• FIX services
• analytical tools
• connectivity
Superannuation administration
software including:
• fund registry
• digital member portal
Clients
• Institutional and independent
advisory
• Institutional sell‑side brokers
• Retail brokers
• Online brokers
• financial planning tools
• scaled advice journeys
• digital client solutions
• data‑driven compliance
and analytics
• regulatory obligations
management
• securities lending
• analytical tools
• algorithmic trading
• market making
• CFD clearing
• post trade solutions
• trading and market data APIs
Integrated software solution
including:
• market data
• order management
• portfolio management
• client relationship management
• wealth management
• Investment managers
• Investment platforms
• Fund managers
• Private client advisers and
managers
• Wealth managers
• Retail platforms
• digital advice solutions
• fund administration services
• Superannuation funds
Multi-channel mortgage sales
and origination software including:
• automated workflow
• application processing
• connectivity
Mortgage intermediary
software including:
• mortgage comparison
• mortgage advice
• lender connectivity
• Mortgage lenders
• Mortgage intermediaries
Life and pensions
Insurance and pension sourcing
software including:
• quoting
• comparison
• application processing
• Institutional and independent
advisory
• Mortgage intermediaries
Iress LimitedAnnual Report 2023 6
Letter from the CEO & Chair
2023 was a year of significant change for Iress, with the appointment
of a new Management Team, the launch of a refreshed strategy and
the start of a comprehensive transformation program aimed at unlocking
the significant earning potential of our core businesses.
Strategy and transformation program
Iress has for many years enjoyed strong market positions in
systemically important financial markets software verticals,
generating high‑quality recurring revenues. However, over time
the company had become too complex, made acquisitions that
did not consistently meet financial or operational hurdles and
had taken its eye off customer experience, while carrying an
unsustainably high cost base.
The Board reviewed this position and decided that a significant
transformation would be required. This commenced with the
appointment of a new CEO and Managing Director in Marcus Price
in October 2022.
Financial results
Iress reported revenue of $625.7m in 2023, up 2% on the previous
year with growth in our Superannuation and UK businesses,
offset by a decline in revenue following the sale of the Managed
Fund Administration (MFA) business in October.
Underlying EBITDA, Iress’ current headline measure of
performance, came in at the top end of the revised guidance
set out at the half year but was 12% down on FY22 at $128.3m.
This was primarily a cost story where inflationary pressures
were a key factor in higher salaries and third‑party input costs.
In response, Iress undertook significant restructuring initiatives,
to trim its cost base.
In early 2023 the Board and Management Team undertook a
thorough review of the business. This resulted in the articulation
of an updated strategy and clear actions to reset Iress’ cost and
asset base, refocus on core businesses, manage non‑strategic
businesses for value and pave the way to innovate to build
future growth.
Iress reported a statutory net loss after tax of $137.5m, in
large part due to non‑cash impairments and accelerated
amortisation of intangible assets which included the $130.2m
write down on the carrying value of UK goodwill. Non‑operating
and significant items also increased to $57.8m, largely related
to transformation activities.
The company’s transformation program, which is set to complete
at the end of FY24, will see Iress emerge with a more efficient cost
base, stronger balance sheet and greater capacity to reinvest in
its core products with innovation powering new growth verticals.
Iress renewed its leadership team during the year, and an
organisation‑wide restructure brought our people closer to our
customers. The company is now structured across four divisions,
with three core businesses and a managed portfolio aimed at
managing assets for value, with the proceeds of divestments to
be used principally to retire debt.
We are executing our transformation plan well and remain
confident we’re on the right path towards operating with
significantly improved metrics and transparency. A number of
transformation initiatives were brought forward in the second
half of 2023, delivering early improvements at the cost and
revenue lines.
The new structure is also delivering on our objective of delivering
more value to our customers. Our leadership team is now firmly
in the driver’s seat, with each of our businesses working to
five‑year plans and accountability resting with divisional CEOs.
We still have much work to do but remain on track to conclude
the transformation program by the end of 2024 with benefits to
continue into FY25 and beyond.
The significant differences between the Group’s headline
Underlying EBITDA measure and the statutory NPAT result
relate to non‑cash amortisation, depreciation and impairment
expenses, and the Group’s non‑operating and significant items
during the year.
As part of Iress’ commitment to improve transparency made at
the time of announcing the transformation program in April, a new
headline financial reporting measure will be adopted from 2024.
Adjusted EBITDA will replace Underlying EBITDA as the preferred
business performance measure, which has a prescriptive and
narrower classification of excluded items from the statutory
audit. This brings Iress more in line with contemporary peers
and market practice.
Cost reset and people matters
Iress made the difficult but necessary decision to reduce
headcount by approximately 15% in 2023 to restore profitability
and improve efficiency.
The company has built a strong culture over many years.
Recognising that workforce reductions can carry risk through
disruption, Management took a considered approach to minimise
impacts on the company’s people and its customers. Your Board
and Management team elected to take this action based on the
view that, over time, a sustainable Iress will be better for both its
employees and for its customers.
7
In 2023, the company used the proceeds of asset sales to
decrease its leverage ratio and retire debt. Further, Iress took
the prudent decision to suspend its interim and final dividends
to prioritise its deleveraging efforts. We expect to continually
assess when conditions are appropriate to commence paying
dividends again.
Outlook
Success through transformation is not a linear process
however the fruits of this program are beginning to be seen
with all key milestones for 2023 achieved by the year’s end.
The transformation program will complete by the end of FY24
with some remaining costs to be incurred in FY25. The result
will see Iress with improved operating margins, greater
transparency, more customer focus, and a stronger balance
sheet as non‑core assets are sold.
Thank you
We would like to acknowledge the extremely hard work by Iress’
employees in resetting this business for future success.
We would also like to thank the Iress Board who have been
fully supportive of the transformation process and engaged
at heightened levels during the year.
We conclude by thanking our shareholders for their
patience during a necessary reset this year. We look forward
with optimism.
Roger Sharp
Chair
Marcus Price
Managing Director &
Chief Executive Officer
Reflecting the shift in Iress’ expectations of its own performance,
we have reset the company’s compensation structure based on
performance metrics that reflect the customer and shareholder
experience. We are acutely conscious of the need to shift to a
performance‑based culture, which the new incentive structure
reflects. Fixed equity entitlements have been replaced with
cash STIs, with entitlement to be driven by performance against
meaningful outcomes.
Responding to shareholder and customer
perspectives
Iress’ shareholders expect improved financial returns, while
customers seek an improved product and service experience.
We increased our focus on customer experience in 2023, and
saw a marked improvement in customer sentiment. We also
increased our engagement with shareholders; with new investors
bought in and some existing shareholders beginning to rotate off
the register.
Transparency is at the core of the new Iress. A common refrain
from shareholders is that the company’s financial metrics have
not always been clear enough. We are taking steps to reframe
our financial metrics and are on track to produce a clearer and
simpler set of accounts from FY24.
Innovation and growth
The company’s transformation program is expected to restore
Iress’ core businesses to their desired level of focus and
profitability. However, it will not render them future proof.
Innovation is required to reimagine the future for our clients
and to kickstart improved growth for Iress. As Iress began to
remediate its core products in 2023 the company also began a
new innovation cycle; aimed at evaluating growth vectors based
on Iress’ core competencies in Australia and internationally.
This will step up during 2024 and accelerate over time.
Environmental, Social & Governance
Despite the company’s urgent focus on transformation during
2023 we continued to prioritise corporate responsibility with
ongoing work in a range of areas; most notably Modern Slavery,
where we completed a risk assessment of our supply chain, and
Environment where the Science Based Targets initiative (SBTi)
approved our near‑term emissions reductions targets. Iress has
committed to reduce absolute scope 1 and 2 greenhouse gas
(GHG) emissions by 69.3% by 2030 from a 2019 base year, as
well as reducing absolute scope 3 GHG emissions 27.5% within
the same timeframe.
Capital management and dividends
At the half year, the company committed to sharing
a new capital management plan, which has now
been announced.
This plan provides a clear statement of policy in
relation to financial leverage, and provides a
framework for balancing profits, capital
reinvestment and dividends.
Iress LimitedESGFinancial ReportAnnual Report 2023Strategic Report 8
Our vision & strategy
An update on our refreshed
strategy & transformation
In April 2023 Iress announced a refreshed corporate strategy
aimed at driving long‑term sustainable growth, benefiting Iress’
shareholders, clients and people. Following this, Management
developed detailed Business Unit strategies, and a five‑year
plan (to FY27).
Iress’ financial goal is to consistently achieve ‘Rule of 40’ returns
for shareholders and build new businesses that achieve ‘Rule of
40’ returns.
The refreshed strategy is underpinned by three pillars – reset,
refocus and build – which together provide the opportunity and
potential to transform Iress.
To execute against this refreshed
strategy, Iress established a
Transformation program and
roadmap, with the governance, rigour
and discipline required to steer the
business towards its financial goal.
Supported by specialist transformation
experts and an internal Transformation
Office, Iress has demonstrated
considerable improvements in reducing
costs, streamlining operations and
laying the foundations for organic
earnings growth.
Reset
Refocus
Build
1
2
3
4
5
6
Structure for accountability and improved performance
Reset the cost and asset base
Focus on the core
Manage portfolio for value
Finish technology uplift
Build new businesses
Iress has a disciplined and rigorous transformation plan to execute the strategy
Transformation
Governance
Transformation
Roadmap
Iress Board Governance
Executive Transformation
Steering Committee
Transformation Execution
Transformation Office Team
Execution Teams
2023
2024
Iress Strategy
Transformation
H1
Corporate
Strategy
Business Unit
Strategy
Transformation
Office Established
H2
5 Year Plan
Execute 6 Strategic Priorities
H1
H2
Structure for Accountability
& Performance
Leadership team
appointed
New structure & scorecards
Execute capability improvements in core business areas
Costs and assets
Cost-out exercise
Optimise business in new structure
Focus on strong
core markets
Manage portfolio
for value
Finalise
technology uplift
Innovate and build
Business unit
plans
Uplift core technology & customer experience
Commence
portfolio separation
Commence MFA/Platforms
divestment process
Realise value in international businesses
Finalise transition to platform architecture and
cloud optimisation program
Establish Iress
Innovations
Embed innovation discipline & new growth opportunities
9
Manage portfolio for value
2023, Iress sold its MFA business for $50.5m. The Platform
business is currently in an active sales process.
The UK Mortgages business has also been announced for
divestment. Simultaneously, efforts are continuing to separate
the UK, South Africa and Canada businesses from Iress’ core
operations to provide optionality.
Build: Set the foundation for greater long term growth
Finish technology uplift
Iress’ technology uplift program is well advanced, delivering
on our commitment to deliver increased value to customers
through technology modernisation and enhanced user
interfaces. The technology uplift program is on track to be
complete in the first quarter of 2024.
Build new businesses
To drive Iress towards new growth, an Innovations team was
formed to explore new revenue opportunities. During FY23 this
team was focused on Data and AI initiatives and delivered proofs
of concept to be further progressed in FY24.
Innovation
A greater culture of innovation is being embedded
across the organisation, supporting each Business Unit
to identify new opportunities that create meaningful
value for our clients and the industries they operate in.
Transformation progress
Iress has made solid progress against
its transformation objectives.
Reset: Create a performance-driven structure
Structure for accountability and improved performance
In July 2023, Iress completed a company‑wide restructure
focused on improving accountability, performance and
customer focus. This resulted in the formation of dedicated
business units – APAC Wealth Management, APAC Trading
& Market Data, Superannuation and Managed Portfolio.
A refreshed and global leadership team has transitioned
all Iress people to the new structure, and implemented a
new performance and remuneration framework to underpin
Iress’ delivery of its vision.
Reset the cost and asset base
Arresting growth in the cost base was a focus in FY23, with
several cost initiatives executed to remove more than $47m in
annualised gross costs from the business. This included a 21%
reduction in gross headcount along with several additional cost
optimisation initiatives (15% excluding the divestment of the
Managed Fund Administration [MFA] business). The divestment
of non‑strategic assets allowed for capital to be used for debt
retirement – namely from the sale of the MFA business.
Refocus: Strengthen the core business franchise,
manage the full portfolio for value
Refocus the core
Iress’ core businesses (APAC Wealth, APAC Trading & Market
Data and Superannuation) have each developed five‑year
strategic business plans, with a focus on improving efficiency,
organic growth and unlocking value for customers.
Customer Experience
During FY23 a dedicated Customer Experience team was
established to support all business units in delivering
enhanced value to customers, and to enable them to
understand their feedback to enable improvements to
Iress’ products and services. A global client survey was
conducted in September 2023 and the insights from
this are being applied to the transformation roadmap.
Iress LimitedESGFinancial ReportAnnual Report 2023Strategic Report 10
Strategic Report
ESG
Financial Report
11
Environmental,
Social &
Governance
Report
Iress takes an active approach towards a
sustainable natural environment and support
for people and communities.
About the ESG report
The environmental, social & governance (ESG) sections of this
report provide an overview of Iress Limited and its subsidiaries’
(‘Iress’) for the period 1 January 2023 to 31 December 2023
prepared in accordance with the GRI Standards. External
assurance has not been undertaken for this report.
Iress LimitedAnnual Report 2023 12
ESG
13
Environmental, Social & Governance Report
Environmental, Social, Governance & Iress Impact
Through stakeholder consultation, we developed a
comprehensive 2025 environmental and social impact strategy
that takes a structured approach to create genuine outcomes.
The Iress Impact framework focuses
on causes aligned with Iress’ business
and communities. We recognise our key
impacts as:
• energy consumption through operations and suppliers
• e‑waste management
• diversity and inclusion
• human rights including modern slavery.
To address these key impacts, our
environmental and social impact strategy:
• aligns stakeholder expectations, commitment and
builds trust
• establishes structured, consistent implementation
• quantifies and tracks impact.
Our 2025 environmental and social impact
roadmap centres on four key pillars:
Through Iress Impact, we are committed to making a visible,
reliable, and meaningful contribution to partner charities that
align with the United Nations Sustainable Development (SDG)
goals of:
Quality education
(SDG 4)
Decent work
(SDG 8)
Partnership for the goals
(SDG 17)
Social
ntal
e
m
n
o
vir
n
E
Prospering community
People wellbeing
Supporting aligned causes
Great place to work
• Quality education
• Decent work
• Enabling charitable
services
• Diversity & inclusion
• Human rights
Healthy environment
Sustainable consumption
• Emissions management
& climate change
• E-waste
Environmental &
social impact at Iress
Responsible business
Strong foundations
• Corporate governance
• Risk management
G
o
v
e
r
n
a
n
c
e
Materiality
In 2023, we conducted a pulse survey and interviews with
our people, shareholders and clients to build on the detailed
materiality assessment conducted in 2022. This process
was informed by the Global Reporting Initiative (GRI) Standard,
Sustainable Development Goals (SDGs), Sustainability
Accounting Standards Board (SASB) software and
IT services sector standard, and Iress’ internal documents.
Our topic universe included 38 topics, which were developed on
research around global risks and megatrends, media trends,
peer comparisons, and relevant ESG standards. We identified
20 material topics for Iress to address in this report and include
these topics in future strategic planning.
Iress’ key stakeholders are those groups and individuals who
impact and are impacted by our operations. These include: our
clients and users, our people, investors, suppliers, industry and
education partners, regulators, governments, and communities
in which we operate.
We regularly engage our stakeholders throughout the year to
understand what’s important and to continue building our ESG
agenda. Engagements can include surveys, peer forums, global
internal Town Halls to encourage open discussions between our
people and the CEO and Leadership Team, and engagement
with policy makers and industry associations such as the
Financial Services Council (FSC) on issues that are important
to our clients and communities. The results of this materiality
assessment are presented in the table below.
Material Topics
Social &
Iress Impact
Culture & values
Environmental
Governance
Climate change
adaptation & resilience
Ethics & integrity
Talent attraction & retention
Waste & resource efficiency
Data privacy & cyber security
Employee engagement
Occupational health,
safety & wellbeing
Modern slavery &
forced labour
Transparent, fair & responsible
product information/advice
Customer & product
Customer experience
Risk management
Industry leadership
& engagement
Responsible & sustainable
procurement
Product/service quality
Responsible advertising
Diversity, equity & inclusion
Innovation
Economic growth
Anti-corruption
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023
14
Strategic Report
ESG
Financial Report
15
Environmental
Environmental
With the known impacts of climate change, and greater visibility of
environmental considerations across the supply chain, taking action on
environmental issues is critical.
2023
key achievements
• The Science Based Targets initiative approved
Iress’ near‑term emissions reduction targets.
• Implemented a new emissions management
system recalculating data from 2019–2023.
• Decreased leased area resulting in a footprint
reduction.
2024
key objectives
• Emissions reduction strategy implementation.
• Develop climate scenarios specific to Iress and
conduct climate scenario analysis.
• Environmental data assurance.
Relevant
UN SDGs
In 2023, the Science Based Targets initiative (SBTi)
approved Iress’ near-term emissions reduction targets:
Iress Limited commits to reduce absolute scope 1 and 2
greenhouse gas (GHG) emissions
69.3%
by 2030 from a 2019 base year.
Iress Limited also commits to reduce
absolute scope 3 GHG emissions
27.5%
within the same timeframe.
In setting the targets, we underwent a thorough
assessment of our emissions boundary to align with
evolving best practice, resulting in revised emissions
calculations (tonnes of CO2e) from 2019 to 2023 as
presented in this section. This report supersedes
previously reported data.
Iress LimitedAnnual Report 2023 16
Environmental
17
Task Force on Climate-related Financial
Disclosures (TCFD)
Iress supports the recommendations of the Task Force on
Climate‑related Financial Disclosures (TCFD) and uses this
framework to ensure transparent reporting of climate‑related
issues. 2022 was our inaugural year reporting against the
TCFD recommendations and included a three‑year roadmap
(2022–2024), which established our key priorities and actions
for improving climate‑related disclosures over the coming years.
Over the past year we have continued to implement priority
actions from the 2022–2024 TCFD disclosure roadmap.
Governance
As listed in Governance structure on page 38.
Board
Iress’ Board has the ultimate responsibility of enabling a positive
risk culture and does so through the Audit and Risk Committee
(ARC). The ARC reviews ESG matters, including climate‑related
issues, on a bi‑annual basis.
In 2023, the Audit and Risk Committee endorsed the updated
emissions reduction targets of increased ambition. These targets
were validated by the Science Based Targets initiative.
Leadership team
In 2023 due to the company‑wide restructure, operational
responsibility for ESG moved from the Legal function to Corporate
Affairs & Marketing. The Chief Corporate Affairs & Marketing
Officer is now the Risk Owner for ESG risks, with support from
the Chief Risk Officer who has responsibility for reviewing all
material risks annually. ESG risks, including climate change, are
integrated into our Enterprise Risk Register as risks that relate to
‘business operations’.
Governance oversight of the ESG function remains through the
ARC, with the Chief Operating Officer appointed the Leadership
Team ‘Climate Sponsor’ and also taking accountability for
ensuring information flows to the ARC through bi‑annual
board papers.
2022
2023
2024
Revision of Audit and Risk
Committee (ARC) Charter
to include mention of
climate change as a risk
Appointment of Executive
Leadership Team ‘climate
sponsor’ – updated to Chief
Operating Officer in 2023*
Inclusion of overarching
climate change risk (high
and extreme) on enterprise
risk register
Bi‑annual updates on ESG
matters, including climate
action, included on Board
Audit & Risk Committee
agenda
Establish and publish
Iress’ 2030 science‑based
emission reduction target
Complete
Ongoing
Underway
Not yet started
Develop assurance
program for sustainability
data (social and
environment) published in
annual ESG report
Develop a global emission
reduction strategy with
interim KPIs to achieve
2030 reduction targets
Develop climate scenarios
specific to Iress and
conduct climate scenario
analysis in 2024
Annual monitoring of
climate impacts and
mitigation, and integration
into enterprise risk
management framework
Disclose scope 1, 2 and 3
greenhouse gas emissions
for Iress’ global operations
(2022 ESG report)
Publish Iress’ validated
2030 science‑based
emission reduction target
in 2022 ESG Report
Ongoing annual disclosure
of progress against
emission reduction targets
at scope 1, 2 and 3 level
Establish Climate
Steering Group, supported
by representatives
responsible for delivering
KPIs for Iress’ emission
reduction strategy
Integration of climate
risk mitigation measures
and emission reduction
strategy into relevant
company strategies
Review of policies and
procedures to align with
ambitions of emissions
reduction strategy
Assess integrated
reporting
Assess the viability of
setting an internal cost on
carbon to inform business
cases and strategy
(*) Replacing Chief Legal Officer due to restructure.
Strategy
A list of priority climate‑related risks and opportunities from 2022
is provided below. In 2022, these risks were integrated into our
broader ESG enterprise risk, which is reviewed bi‑annually.
Iress has undergone significant operational changes and a
business transformation which delayed the planned scenario
analysis. This will occur in 2024 to better understand the
resilience of our business strategy to identify climate‑related
risks and opportunities.
These risks and opportunities were considered still relevant in
2023 and will be reviewed again in 2024 by the Risk Owner and
the Chief Risk Officer. The Risk Owner is responsible for managing
the risk, including ongoing monitoring of the effectiveness of
key controls.
The workshops identified a number of climate‑related
opportunities for Iress. These key transition opportunities relate
to the following areas:
a. Supplier engagement – Strong supplier relationships through
shared commitment to reducing emissions.
b. Employee/talent attraction and retention – improved position
on employee attraction, engagement and retention, supported
by action on climate change.
c. Meeting customers’ expectations and taking a
market-leading position – providing products and services
that support climate‑related requirements for clients.
d. Reputation on climate action – improved reputation on climate
change through engagement and knowledge sharing with
clients, suppliers, and professional learning communities.
Noting the potential impact of climate change on the business,
Iress has established near‑term science‑based targets (SBTs)
that were validated by the SBTi in 2023 (refer to ‘metrics and
targets’ for more details). These targets are supported by an
emissions reduction strategy that identifies and stages priority
actions over a seven‑year period from 2023 to 2030.
Risk management
Climate change introduces a varied array of risks across different
time frames, each carrying different probabilities across our
global operations. Amongst these risks lie opportunities to
navigate regional and global shifts toward a low‑carbon economy.
Climate‑related risks and opportunities are assessed through
our existing Risk Management Framework. In 2022 we conducted
a review of our Risk Management Framework and revised our
approach to managing risk, including the development of new
likelihood, consequence and risk ratings tables and categories.
This new framework improves oversight of ESG related risks,
including those related to climate change.
In 2022, we also conducted a series of climate‑related risk
and opportunity workshops to identify and assess risks and
opportunities across Iress’ global operations. Representatives
were involved from all relevant business segments, including
marketing, legal, product, technology, and business development.
Risks and opportunities were identified using two extreme
future scenarios: 1) ‘runaway climate change’, focusing
on physical impacts; and 2) ‘heavy regulation and policy
intervention’, focusing on transitional impacts. The materiality
of identified risks and opportunities were assessed using the
organisation’s Risk Management Framework consequence
and likelihood criteria.
ESG impact
Physical
IT operation
(incl. IT security)
People (talent
and capability)
Transitional
ESG risks
Description
Weather events (e.g., floods,
fires, etc.) impact critical
services
Weather events (e.g., floods,
fires, etc.) impact offices and
employee commute
Weather events, especially extreme heat, wildfire, causing power outages
and disruption to critical services (internet, phone and power) impacting
service provision to clients. Also affects people working from home.
Increase in employee absence due to sickness driven by climate related
impacts (e.g. extreme heat, extreme hayfever etc.).
Financial (revenue)
Difficulty in obtaining capital
Brand, reputation
and customer
Financial (revenue)
Requirements to
reduce emissions
Requirements to
reduce emissions
Financial (revenue)
Reputation on climate action
Brand, reputation
and customer
Regulatory changes
related to climate change
Increased requirements for Iress to gain access to capital (i.e. must
demonstrate emission reduction), unable to achieve, resulting in higher
interest rates or inability to access loans.
Clients expect demonstrated emission reduction in Iress' products over
time, failure to do so, or disclose progress, may lead to loss of customers.
Investors expect demonstrated emission reduction in Iress over time, failure
to do so, or disclose progress, may lead to loss of investment, negative
impact to share price or access to capital.
Iress is perceived by investors and customers as not "doing enough" and
not transparent enough by clients, which leads to loss in sales/revenue.
Iress fails to anticipate or meet the needs of clients in responding to
climate‑related regulation within their industry (i.e. tracking of emissions
intensity of funds or information on validating ESG claims). Loss of customers
and impact on brand reputation.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGEnvironmental
18
Environmental
Metrics and targets
In 2023, the Science Based Targets initiative (SBTi) approved
Iress’ near‑term emissions reduction targets: Iress Limited
commits to reduce absolute scope 1 and 2 greenhouse gas (GHG)
emissions 69.3% by 2030 from a 2019 base year Iress Limited
also commits to reduce absolute scope 3 GHG emissions 27.5%
within the same timeframe.
Greenhouse gas emissions
In 2023, we recalculated our FY19 to FY23 emissions using the
emission calculation software PathZero. This allows us to ensure
we use consistent methodologies and reporting methods across
all historical and future years. Our 2019 emissions baseline was
developed in accordance with the Greenhouse Gas Protocol
and adjusted to account for mergers and acquisitions during
this period.
The scope 3 GHG protocol categories covered by our scope 3
SBTi target are: purchased goods and services (cat. 1), capital
goods (cat. 2), fuel and energy related activities (cat. 3), waste
(cat.5), business travel (cat.6), employee commuting (cat. 7)
and upstream leased assets (cat. 8).
Emissions for scope 1 and 2 were calculated using relevant
jurisdictional emission factors. Scope 3 was calculated using
supplier specific data, bespoke modelling and input‑output
emissions factors (tCO2e/$AUD).
Photo Credit: Rabie Property Group
Green Building Certification
Iress has been on a path of continued improvement in
embedding environmental considerations into tenancy
decisions, seeking more energy efficient and higher
rated buildings. Most recently, the Cape Town office was
relocated to Sable Corner which was awarded a 4‑Star
Green Star Office v1.1 Design certification by the Green
Building Council of South Africa (GBCSA). The design
boasts green building principles such as energy efficient
lighting, recycled materials and double glazing for heat
reduction. Iress’ Facilities team also made a conscious
effort to use only local suppliers for the fit out, to reduce
travel and shipping.
19
Scope 3 emissions
Scope 3 emissions arise from indirect emission sources in our
value chain. Reductions within this scope rely on engagement with
our suppliers and people. Emissions have been calculated using a
combination of spend, actual and modelled activity data.
2023 total Scope 3 emissions
19,538 (‑11%*)
2019
2020
2021
2022
2023
-14%
29,635
24,015
21,373
20,987 20,555
Global scope 3 emissions by category (tCO2e)
Purchased goods & services
68% of total 2023 emissions
Capital goods
5% of total 2023 emissions
Total
(tCO2e)
+19%
20,588
11,762 12,685
13,774 14,053
4,644
3,878
4,903
2,181
-80%
931
931
Fuel & energy related activities
1% of total 2023 emissions
Upstream transportation & distribution
0% of total 2023 emissions
429
291
-42%
110
231
248
185
59
65
63
Waste & wastewater
1% of total 2023 emissions
Business travel
12% of total 2023 emissions
+125%
306
136
125
62
71
1,654
456
345
1,215
Employee commuting
2% of total 2023 emissions
Upstream leased assets
6% of total 2023 emissions
576
626
-43%
2,531
2,301
2,247
1,952
126
258
330
-87%
15
+51%
2,498
-54%
1,158
Waste management
We continued to educate our people on responsible waste
management practices including recycling and reusing.
Electronic waste
Iress is committed to the sustainable procurement and
consumption of electronics and their responsible disposal at
end‑of‑life, to maximise resource recovery. We implemented a
process for e‑waste disposal requests globally using a single
supplier for consistency.
Water management
We understand water is a depleting natural resource and the
importance of water stewardship. Our cloud partner has made a
commitment to be water positive by 2030 returning more water
to communities and the environment than they use in data
centre operations. This will be achieved by increasing the use
of sustainable water sources, improving water use efficiency
across operations, reusing water as much as possible, and
supporting water replenishment projects for communities and
the environment around the world.
Scope 1+2 emissions
Scope 1 emissions relate to purchased gas and diesel and
reimbursement for company car related expenses. Scope 2
emissions relate to electricity purchased for our global
offices. Our primary offices in Melbourne and Sydney,
Australia operate on renewable energy. Electricity emissions
are calculated using the market based approach. Under this
methodology renewable electricity purchases have been
deducted from the emissions total.
2023 total Scope 1+2 emissions
1,016 (‑53%(1))
Market based electricity calculations (tCO2e)
Scope 1
231
193
104
-22%
191
181
‑22%
change from base
year (2019)
Market based electricity calculations (tCO2e)
Scope 2
We are subject to the following environmental legislation and have
met 2023 reporting obligations for the following requirements:
1,943
1,322
-57%
816
683
835
‑57%
change from base
year (2019)
(1) Reduction from base year 2019.
Environment requirement
Energy Savings Opportunity Scheme (ESOS)
Streamlined Energy and Carbon Reporting (SCER)
Jurisdiction
United Kingdom
United Kingdom
EU Waste Electrical and Electronic Equipment Directive (WEEE)
United Kingdom, France
(*) Reduction from base year 2019.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGEnvironmental 20
Social
21
2023
key achievements
• Initiation of Reflect Reconciliation Action Plan
& working group.
• Continued to strengthen our support of Talent
Beyond Boundaries – awarded ‘Champion Employer
of the Year’ at the UK Fragomen‑TBB Displaced
Talent Mobility awards, and attended the Global
Refugee Labour Mobility summit in Jordan.
• As part of our commitment to gender diversity,
Iress has renewed its signatory status with both the
Tech Talent Charter and Women in Finance charter
in the UK in addition to a continued partnership with
Work180 in UK and Australia, and being a signatory
on the 40:40 Vision.
2024
key objectives
• Broaden and embed diversity, equity and
inclusion as part of how we work, who we
are and what we stand for.
• Implement foundational diversity, equity
and inclusion training to promote a greater
common understanding and awareness.
• Address modern slavery risk through
the development of human rights toolkit,
including strengthening due diligence and
remediation procedures.
Relevant
UN SDGs
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial
22
Social
Employee engagement
In December 2023, we conducted our annual people survey
inviting all Iress people to have their say on what matters to
them and what we do well.
Iress saw a decline in overall employee engagement in 2023.
We note that the company is in the midst of a significant
transformation, which has included a major restructure and
headcount reduction program.
People benefits at Iress
People are at the heart of what we do.
The following benefits continued to be
provided to our people in 2023:
Wellbeing
Iress’ unique Long Weekends benefit increased to eight days
leave per year (on either a Friday or Monday) in addition to their
annual leave entitlement to do what they enjoy most. In 2023,
12,000 Long Weekend days were taken by our people globally.
Other benefits include:
• 17 weeks paid parental leave and a further nine weeks at
half-pay. Return from parental leave on reduced hours for
four weeks at full salary. Continued payment of retirement
contributions for our people during parental leave in all
countries where it is possible to do so.
• 8.5 days starting school leave to take when their children start
school for the first time.
• The ability to purchase and sell back up to 10 days additional
leave per year.
• Three “Iress Impact” volunteer days per year, to allow our
people to give back to their local communities.
Occupational Health and Safety (OH&S)
We are committed to ensuring our workplace is safe and healthy
at all times for the benefit of our people, clients and visitors.
Our primary business activity is office based, therefore training
focuses on OH&S within this environment. We conduct annual
third‑party audits of our OH&S management system. Outcomes
are integrated into OH&S management and reflected in our global
OH&S policy where relevant. Should a potential risk be identified,
our Facilities team is tasked and trained in remediation. Should
an incident occur, these are reported through dedicated First
Aid officers who are responsible for notifying the facilities team.
OH&S issues are reported to a dedicated email address and are
reviewed by the facilities team and dedicated OH&S champions.
These reports are also reviewed by Iress’ OH&S Committee.
In 2023 we had three minor incidents: two of these were offsite,
and one minor accident was recorded in our offices. Iress also
provides access to a third‑party Employee Assistance Provider
for each operating market.
87%
of people agreed that their People Leader
cares about their wellbeing
81%
of people agreed that harassment of any kind
is not tolerated at Iress
75%
of people agreed that they are genuinely supported if
they choose to make use of flexible working arrangements
75%
of people agreed that people from all backgrounds have equal
opportunities to succeed at Iress
73%
of people agreed that Iress values diversity
71%
of people agreed that Iress builds teams that
are diverse
46%
overall employee engagement
Total participation
86%
76%
82%
2021
2022
2023
Diversity, equity and inclusion
In 2023 we:
• Celebrated #EmbraceEquity on International Women’s (IWD)
day by:
> giving everyone at Iress an opportunity to nominate a woman
they work with and provide a description about why they
admired them, the value they add, and the skills that they
bring. These nominations were collated and projected on
our main office display screens for the week of IWD 2023.
> supporting local charities focused on helping women through
raffles, donations and fundraising.
> facilitating interactive global webinars with Leaders for Good
to gain a deeper understanding of the concept of equity and
gender inequality, and learn clear actions we can take as
individuals to drive equity.
• Celebrated Global Accessibility Awareness Day with a special
guest speaker giving us an engaging and informative brown
bag session about accessibility.
• Continued to undertake annual role‑by‑role remuneration
reviews (by country) and submit annual Gender Pay Gap
reports to ensure role gender remuneration parity.
• Maintained endorsed employer status with Work180 in
the UK and Australia.
In 2024 our priorities include:
• We are participating in the 40:40 Vision for representation of
40% Women, 40% Men, 20% any gender at Board, Leadership
Team and Senior Leadership levels by 2030.
• Attracting diverse talent, with objectives to target 45% of female
representation of candidates to be interviewed for all roles, and
50% female representation of hires in New Talent Programs.
We will also deliver focused DEI Training on inclusive recruitment
to our Talent Acquisition team, and maintain our endorsed
Employer Status with Work180 in both the UK and Australia.
• Ensuring there is no bias in how we remunerate by continuing to
undertake an annual Gender Pay Gap analysis and submitting
Gender Pay Gap reports.
• Establishing a DEI council with a clear purpose to identify any
barriers to diversity and inclusion in our current practices,
recommend new programs or practices, and track the long‑term
progress of promoting a culture of inclusion.
• Delivering DEI Foundation training to all people to raise the level of
understanding and awareness of DEI, what inclusion really means
and how it can benefit Iress, teams, leaders and individuals.
• Publishing a DEI statement of intent stating what Iress intends
on achieving in broadening our focus beyond gender diversity.
In 2023 we released our 2022–2023 Australian Workplace
Gender Equity Report. The report is a mandatory requirement
under the Workplace Gender Equality Act 2012 (the Act) in Australia.
The information in the report is based on our Australian people
only and covers our specific policies, strategies and actions
on gender equality, as well as employee movements including
appointments, promotions, resignations and parental leave; and
our workforce composition, salaries and remuneration. In 2023
we also released our 2022 UK gender pay gap report based on our
people in the UK. This report is a mandatory requirement under
the Equality Act (2010) in the UK. Both reports can be accessed
www.iress.com/join‑us/diversity‑iress.
23
Female representation at Iress:
Board
42.8%
33.3%
35.3%
Executive Leadership
Overall
We understand that a diverse Board, with different perspectives,
experience and gender, will remain relevant, competitive and
productive. We manage this objective by periodically assessing
the diversity of the Board, in terms of gender, talent and
experience, and determining the extent to which membership
of the Board fulfils that objective.
Graduate recruitment program
In 2023 we launched our graduate recruitment program in
South Africa. The 12 month program forms part of our Black
Economic Empowerment skills development plan to upskill
previously disadvantaged communities in South Africa. In 2023,
six African graduates, with a 50/50 gender split, were hired and
successfully completed the program. Five of these graduates
have been placed in permanent roles at Iress, beginning in 2024,
and an additional four new graduates will participate in the 2024
Graduate Program in South Africa. Iress does not employ workers
under the legal age of work, and requires suppliers to abide by
legal standards related to working age and hazardous work.
Reconciliation Action Plan
We initiated the Reflect stage of the Reconciliation Action Plan
through the creation of a working group represented by people
across states and business units. We are grateful to have Celeste
Carnegie, a Birrigubba Juru and South Sea Islander woman from
the tropics of North Queensland, represented on the working
group. She brings passion and drive to build platforms for First
Nations people everywhere.
We have an open invitation to all people at Iress to contribute to
the working group at any time. We promote this through internal
platforms and share awareness during Reconciliation and
NAIDOC Weeks.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial Cloud Transformation
TradingTech Insight
Awards Europe
Iress won ‘Best Low
Latency Data Feed’ at
A‑Team Group’s 2023
TradingTech Insight
Awards Europe
24
Social
Awards and recognition
Upfront
Iress won silver at the Corporate Content Awards
in London for our podcast, Upfront, which was
recognised for its creativity and originality.
Best Investment Management Application
Iress won the Best
Investment Management
Application award at the
Goodacre Systems in the
City Fintech Awards
25
Iress won the Cloud Transformation category
at the 11th annual Technology Business
Management (TBM) Council awards.
Nominees were evaluated based on tangible
results such as optimisation of on‑premises
and cloud costs and investment prioritisation,
shifting money from run‑the‑business to
change‑the business, self‑funding innovation
programs, and driving return on investment
from project and product portfolios.
Champion Employer of the Year
Fragomen and Talent Beyond Boundaries (TBB)
hosted the inaugural Displaced Talent Mobility
Awards Ceremony to celebrate and recognise
the people and organisations behind the
groundbreaking work undertaken to advance
displaced talent mobility in the UK. Iress was
named Champion employer of the year.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial 27
500
$266,921.87
Volunteer hours
Donated
86
Charities
supported
Caring for Communities and People (CCP)
Throughout 2023 a small group of Iress Employees in the UK
have been helping CCP with skilled-based volunteering to
improve their Hamper Scamper Referrer process.
The previous form used by CCP was unsuitable as it only allowed
30 inputs per submission, however, a number of their referrers
have over 200 children that they refer. It also didn’t allow for
submissions to be edited by the referrer and in addition to that
the code generated for each gift had to be generated by hand for
each gift taking into account siblings. The Iress team working on
the project has been able to automate the generation of the gift
code as well as establish a method to identify siblings and are
fully in control of the new cloud‑based solution.
UX Scholarship, Australia: Iress and Academy Xi
designing the future with young women
Over the past year Iress has been working with the River
Nile School, an independent school for refugees and asylum
seeker women.
We wanted to create a valuable experience in collaboration
with the students. Through the Iress Design Scholarship, and in
partnership with Academy Xi, Iress is providing an opportunity
for women from the River Nile School to access a fully paid,
accredited design course.
We would like to congratulate the inaugural recipients of the Iress
Design Scholarship: Marwa Irdis and Maram Irdis. After being
introduced to the profession of UX design nine months ago,
they have shown outstanding dedication to learning the craft
of design.
iSchool Africa
The Iress iSchoolAfrica programme was launched at Lehlabile
Secondary School in partnership with Mamelodi Initiative in
July 2020 and we continued to support this program in 2023.
The objective of the iSchoolAfrica #MyFuture programme
is to empower Grades 10, 11 and 12 learners who have the
potential to succeed through a combination of iPad technology,
access to relevant curriculum content and online school
subject‑focused lessons.
In 2023 we added another school to the programs that we
support. We are now also sponsoring the “Everyone Can Code
programme” at Liv Lanseria for students in Grade 4 to 7. There
are a total of 76 students at Liv Lanseria that benefit from this
coding program.
Iress hosted two coding days in 2023 at the Iress Johannesburg
office with the students sponsored through the Iress
iSchoolAfrica programmes.
26
Social
Iress Impact
Iress Impact was established in 2017 to
support charities, predominantly through
fundraising and workplace giving.
The guiding principles established
in 2017 remain relevant today:
facilitate, support and promote people
engagement, while making a visible,
reliable, and meaningful contribution
to partner charities.
As a financial technology company, we have aligned Iress
Impact’s mission to the following United Nations Sustainable
Development (SDG) goals:
Quality education (SDG 4),
with a focus on STEM education
Decent work (SDG 8),
with a focus on displaced people and refugees
Partnership for the goals (SDG 17),
through the provision of services to charities
Talent Beyond Boundaries (TBB) Summit in Jordan
Peter Ferguson and Cindy Hu represented Iress at a Refugee
Summit in Jordan.
The Summit focused on how global communities can improve
labour mobility for refugees and how TBB could generate
greater scale, as well as encouraging participants to commit
to meaningful action to support that.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial
28
Social
People data
Gender percentage
Total workforce by gender
Executive, senior & other
managers by gender
Percentage of employees receiving
regular performance & career
development reviews
33.3% Female
63.5% Male
3.2% Not declared
38.4% Female
61.3% Male
0.3% Not declared
100% Female
100% Male
100% Not declared
Employee totals by contract type, employment type and gender
Contractor
Fixed term
Regular
8 Female
43 Male
57 Not declared
108
14 Female
10 Male
24
611 Female
1,152 Male
3
Not declared
1,766
Full time
Part time
Total
542 Female
1,137 Male
3
Not declared
1,682
83 Female
25 Male
108
633 Female
1,207 Male
60
Not declared
1,900
Health & safety: lost day rate
1.5% All
1.8% Female
1.4% Male
1.7% Not declared
29
New people hires (2023) by region, gender & age
Location
APAC
North America
South Africa
UK & Europe*
Total
Gender
<30
30–50
>50
Total
%
Count
%
Count
%
Count
Count
Female
Male
Not declared
Female
Male
Not declared
Female
Male
Not declared
Female
Male
Not declared
14.9
23.29
–
–
100.0
100.0
60.0
50.0
–
41.6
26.7
50.0
24.5
10
17
–
–
1
1
3
2
–
5
8
2
49
56.06
60.27
–
100.0
–
–
20.0
50.0
–
50.0
60.0
50.0
55.5
37
44
–
1
–
–
1
2
–
6
18
2
111
33.33
16.44
–
–
–
–
20.0
–
–
8.3
13.3
–
20.0
22
12
–
–
–
–
1
–
–
1
4
–
67
73
–
1
1
1
5
4
–
12
30
4
40
200
(*) UK & Europe includes Tunisia employees.
People turnover (2023) by region, gender & age
Location
APAC
North America
South Africa
UK & Europe*
Total
Gender
<30
30–50
>50
Total
%
Count
%
Count
%
Count
Count
Female
Male
Not declared
Female
Male
Not declared
Female
Male
Not declared
Female
Male
Not declared
18.1
15.8
–
–
33.3
100.0
14.3
4.8
–
17.8
16.6
100.0
16.6
36
40
–
–
2
2
4
2
–
10
16
2
114
63.6
67.5
–
75.0
66.6
–
60.7
73.1
–
62.5
48.9
–
63.1
126
171
–
3
4
–
17
30
–
35
47
–
433
18.1
16.6
–
25.0
–
–
25.0
21.9
–
19.6
34.3
–
20.2
36
42
–
1
–
–
7
9
–
11
33
–
139
198
253
–
4
6
2
28
41
–
56
96
2
686
(*) UK & Europe includes Tunisia employees.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial
30
Social
Employee levels by gender & age
Employee Level
Global Leadership Team
People Leaders
Employees
Total
People by contract & region
Region
Australia
Canada
France
Remote
New Zealand
Singapore
South Africa
Tunisia
United Kingdom
United States of America
Total
31
Employee by business unit, gender & age
Business Unit
%
Count
%
Count
%
Count
Total
Gender
<30
30–50
>50
Core Trading & Market Data
Core Wealth Management
Global Portfolio – CA
Global Portfolio – SA
Global Portfolio – UK
Group Finance
Group Marketing
Gender
<30
30–50
>50
Total
%
Count
%
Count
%
Count
Count
Group Operations
Female
Male
Female
Male
Not Declared
Female
Male
Other
Not Declared
4.72
1.83
11.97
14.67
100
11.56
6
4
59
137
1
207
100
40
66.14
70.18
100
65.72
67.24
100
5
4
84
153
1
324
628
1
60
29.13
27.98
22.31
18.09
6
37
61
110
169
5
10
127
218
1
493
934
1
1
67.04
1,200
21.40
383
1,790
Regular
Fixed Term
Contractor
Total
900
49
40
0
19
31
137
19
570
3
1,766
16
0
0
0
1
0
7
0
0
0
24
15
0
3
79
0
0
1
0
10
0
931
49
43
79
20
31
145
19
580
3
108
1,900
Grand Total
Group Risk
Group Technology
Innovation
Leadership
People
Platform
Super
Transformation & Strategy
Female
Male
Not declared
Female
Male
Female
Male
Female
Male
Female
Male
Not declared
Female
Male
Female
Male
Female
Male
Not declared
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
14.02
13.95
13.68
100
12.37
10.31
13.44
18.18
10
20.59
8.70
12.07
5.26
9.60
8.06
10.22
4.88
8.33
8
6.25
11.11
11.76
14.71
9.09
5.17
66.67
1.82
24
22.73
33.33
23.26
5.56
36
11.66
8.66
14.10
33.33
50
11.56
45
12
32
1
35
10
25
8
1
7
10
7
3
43
10
33
2
2
2
1
1
8
5
3
3
2
1
6
5
1
10
1
9
33
11
22
2
2
207
71.03
65.12
73.50
72.44
76.29
70.43
56.82
70
52.94
71.30
68.97
73.68
65.40
64.52
65.63
100
68.29
82.35
58.33
84
87.50
77.78
63.24
58.82
66.67
100
87.50
83.33
100
82.76
33.33
85.45
90
100
88.89
41.67
75
25
72
77.27
33.33
51.16
72.22
36
56.89
51.97
60.90
50
50
50
66.93
228
56
172
205
74
131
25
7
18
82
40
42
293
80
212
1
28
14
14
21
14
7
43
20
22
1
7
5
2
48
1
47
9
1
8
5
3
2
18
17
1
22
13
9
161
66
95
3
1
2
1,198
14.95
20.93
12.82
15.19
13.40
16.13
25
20
26.47
20
18.97
21.05
25
27.42
24.15
26.83
17.65
33.33
8
6.25
11.11
25
26.47
24.24
12.50
16.67
12.07
12.73
10
11.11
58.33
25
75
4
33.33
25.58
22.22
28
31.45
39.37
25
16.67
50
48
18
30
43
13
30
11
2
9
23
11
12
112
34
78
11
3
8
2
1
1
17
9
8
1
1
7
7
1
1
7
1
6
1
1
11
4
7
89
50
39
1
1
21.51
385
321
86
234
1
283
97
186
44
10
34
115
58
57
448
124
323
1
41
17
24
25
16
9
68
34
33
1
8
6
2
58
3
55
10
1
9
12
4
8
25
22
3
43
18
25
283
127
156
6
2
4
1,790
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial
32
Social
Board diversity: gender & age
4
3
42.8%
Female Board representation
0
0
0
0
<30
30–50
>50
Female
Male
Ratio of basic salary & remuneration of females to males**
Location
APAC
North America
UK & Europe*
South Africa
(*) UK & Europe includes Tunisia employees.
(**) Based on average salary across gender.
Parental leave statistics by gender
Employees that were
entitled to parental leave
Employees that
took parental leave
<30
1:1.08
1:0.80
1:1.17
1:1.05
30–50
1:1.12
1:1.16
1:1.12
1:1.29
>50
1:1.46
1:1.64
1:1.07
1:1.28
Employees that returned to
work in the reporting period
after parental leave ended
Employees that returned
to work after parental
leave ended that were still
employed 12 months after
their return to work*
Female
562
1,079 Male
1,641
44 Female
40 Male
84
33 Female
45 Male
78
13 Female
30 Male
43
(*) Calculated using figures of people who took parental leave in 2022.
Return to work and retention rates of employees that took parental leave**
Female
Male
Retention rate
90%
97%
55%
(**) Calculated using figures of people who took parental leave in 2022 and were still employed after 12 months.
33
Community and industry engagement
Industry support and engagement
Iress is committed to keeping our clients connected and informed
when it comes to relevant industry matters and the support
available to them. In 2023 we hosted a series of events for the
Superannuation, Wealth and Trading communities in Australia,
featuring industry experts. Iress also played host to the first‑ever
FISD event in Melbourne, bringing the financial information
industry together in October. In December, we hosted our annual
Super Efficient superannuation conference in Melbourne, with
leaders from across the superannuation industry coming
together to discuss innovation, best practice, and the delivery
of better retirement outcomes for all Australians. In the UK, our
popular Exchange Protection Forum continues to gather partners
and providers in the industry to discuss the latest developments
impacting the intermediary market.
Iress also sponsored multiple industry conferences in 2023
across APAC, South Africa and the UK. We also supported and
attended a number of charity and industry awards events.
Launch of Advisely – financial advice industry
community of best practice
In November 2023, Iress launched Advisely, a community of best
practice with tools, insights and news to help financial advisers
and practitioners to benchmark their operational efficiency
across key advice dimensions, while connecting and learning
from peers and experts on how to improve. The genesis of
Advisely stems from Iress’ 2023 Advice Efficiency survey which
highlighted a significant gap between ‘high performing’ financial
advice providers and the average – amounting to as much as
four hours difference per client, per annum. In helping advisers
become more efficient, Iress also has an opportunity to help
improve affordability of advice for all Australians.
Upfront podcast
Following the success of Series 1 in 2022, the second series
of Iress’ award‑winning podcast, Upfront, was released. The
podcast continues to pose thought‑provoking questions about
the financial services industry’s purpose with episodes on
responsible investing, ethics and Artificial Intelligence, diversity,
equity, inclusion and mental health. Since its launch, Upfront has
had over 90,000 downloads. Recent benchmarking data from
Omny Studio puts Upfront in the top 10% of all global podcasts.
Upfront is available on all major podcast platforms.
Iress People Conference: ‘Game On’
In October Iress held three employee conferences in central
locations around the world: London, Johannesburg and
Melbourne. The purpose of the event was to illuminate outside
perspectives on key trends influencing our markets, clients,
people and technology, inspire confidence in Iress’ future
direction, and connect our people to Iress’ refreshed strategy.
1,490 people attended across locations with positive sentiment
highlighting the value of hearing from leaders, hearing from
industry experts and connecting with colleagues.
Industry Risk
Notable high-risk categories
Repairs &
maintenance
Computer &
communication
equipment
Utilities &
electricity
Furniture &
office equipment
Telephones &
mobiles
Software
expenses
Modern slavery
Iress is committed to better understanding and more effectively
managing the risk of modern slavery within our operations and
supply chain. Iress released its third Modern Slavery Statement in
June 2023 in accordance with the Modern Slavery Act 2015 (UK) (a
UK Act) and the Modern Slavery Act 2018 (Cth) (an Australian Act).
This statement is available on Iress’ website and the Australian
Border Force Modern Slavery Portal. In 2023 we engaged a
human rights consultancy to support risk identification across
operations and supply chain as well as assess due diligence and
remediation mechanisms. Across the full scope of Iress’ supply
chain, the following spend categories were noted to be high risk
for modern slavery and potential human rights violations.
Key priorities to address Modern Slavery risk and human rights
toolkit development include:
• Category management plans: covering merchandise, labour
hire and electronics.
• Modern Slavery Governance: key business stakeholders to be
onboarded and engaged in the newly formed Supplier Council.
• Strengthening due diligence: develop efficient and credible
processes and methods for supplier due diligence.
• Improving supplier engagement: create a structured process
for engagement around meeting appropriate standards and
improve the Supplier Code of Conduct by aligning it with UNGPs
and relevant industry initiatives.
• Conducting third party audits and disclose outcomes: go
beyond self‑assessment and request high‑risk suppliers
undertake third party verification audits and publish the audit
results transparently.
• Strengthening remediation procedures: implement effective
grievance mechanisms.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial 34
Social
35
Supply chains
Iress has over 1,600 suppliers across
technology infrastructure, software,
facilities management, banking services
providers and outsourced service
providers for various disciplines, as well
as professional consultants in finance,
legal, marketing and communications
disciplines. Critical suppliers are defined
as those that:
•
Perform a task on behalf of Iress or
a customer
• Perform or provide a product that is
essential to the business continuity
of Iress
• Represent the most significant
supplier spend.
Iress is committed to upholding stringent procurement practices,
ensuring adherence to both core‑selection, best‑practice criteria
and stakeholder expectations. The criteria includes a number of
technical, legal, operational, and sustainability factors against
which suppliers are assessed. Iress does not engage a supplier
unless they meet this criteria. This process of assessment
ensures that suppliers are both suitable and meet the objectives
contained in Iress’ various policies, including the Supplier Code
of Ethics Policy.
Our Supplier Code of Ethics Policy outlines the expectations
of Iress’ suppliers to share the values set out in the Code. The
Code applies to all suppliers engaged by Iress, being any third
party organisation which provides goods and services to Iress.
Suppliers are also expected to ensure that their supply chain,
including sub‑contractors, adheres to the Code. Our Supplier
Code of Ethics and Sustainable Procurement Policy, which
applies to all suppliers, are available online. As part of improved
oversight on our supply chain we intend to further understand
and collect information on the environmental impact of our
suppliers. Our Code of Ethics and Conduct Policy guides our
people and suppliers on corruption and bribery as well as
e‑learning and training.
In 2023 we:
• Increased our use of social enterprise and Indigenous owned
businesses for our catering provision, and for the electronic
waste recycling.
• Further enhanced our onboarding process that captures
information across additional categories of ESG and engages
due diligence across Iress Legal, Procurement, Information
Security, and Accounts teams.
• Enhanced the real‑time monitoring of all non‑government
suppliers, including financial stability, adverse media
(environmental, labour, health & safety, ethical & regulatory
media), sanctions, and company sustainability credentials.
This was done by improving the market data vendors used to
source this information.
• Undertook further vendor segmentation work to deep dive into
areas of potential modern slavery risk by using categorisation
around vendor place of activity, more specific product code
analysis.
In 2024, we aim to:
• Further consolidate the office lease footprint globally, where
appropriate relocating to smaller and more energy efficient
office locations.
• Further expand the use of recycled and sustainably sourced
materials for office fitout and furniture requirements (see the
case study regarding our recent work in this area in our Cape
Town office).
• Implement enhanced supplier questionnaires for the supplier
categories identified as having heightened modern slavery risk
in our 2023 segmentation deep dive activity.
Social procurement in South Africa: Broad-based Black
economic empowerment (BBBEE)
BBBEE stands as a pivotal element in the South African
Government’s strategy for transformation. Envisioned as a
mandated initiative, it aims to tackle the persistent repercussions
of the apartheid system. This program actively advocates for
increased economic involvement of Black individuals, women,
people with disabilities, and youth within the broader economy.
BBBEE has different components, and includes Enterprise and
Supplier development.
This measures the extent to which entities buy goods and
services from empowering suppliers with strong BBBEE
recognition levels. Supplier and enterprise development initiatives
intend to assist and accelerate growth and sustainability of
enterprises owned by Black people (African, Coloured, Indian
and Chinese). Iress’ performance is audited and final audited
results for 2022 are applicable for the period January 2023 to
December 2023. Iress scored 90.4% (45.2 out of 50 points which
is down on the prior year of 46.4) on this metric.
Preferential Procurement
The Preferential Procurement metric measures the percentage
of an entity’s expenditure with an empowering supplier that is
recognised as BBBEE expenditure, depending on that supplier’s
BBBEE level. Iress scored 80.89% of the total measured points
including bonus points. This position is lower than the prior year
of 85% due to a one‑off office revamp project.
We continue to maintain Iress Enterprise Development program
(ED) beneficiaries into the supplier pipeline to allow them to
participate in the procurement process. Iress earns 100% of the
points available. The Iress ED program makes a monetary and
non‑monetary contribution to develop businesses that are owned
by Black people. The target for ED is 3% of net‑profit after tax,
which for 2023 was estimated at $44,800 (FY2022 $51,000).
The Iress Supplier Development (SD) program
The Iress Supplier Development (SD) program is on a contribution
basis made available to Iress’ Black‑owned suppliers, who are
mostly small entrepreneurial businesses. Iress earns 100% of the
points available. The target for SD is 2% of net‑profit after tax for
2023, which is estimated at $32,000 (FY2022 $34,000). In 2023,
we made financial contributions to the following organisations:
• MalediFresh (Fresh fruit supplier): We provided fencing to enable
protection from vandalism that disadvantaged the business
last year.
• Akunamillio (Fire services): We enabled additional deployment of
teams as the business has grown.
• Lucky Time (BBBEE Admin provider): We supported training and
specialist skills development.
In 2023, our ED program contributions included support for:
• Vezi Solutions (IT hardware): We supported this existing supplier
to refresh their hardware.
• Digital Cloud (Marketing): We supported this supplier to refresh
their hardware and software.
• Polelo, who provide ed‑tech support as part of the
“Jendamark/Odin Education” ecosystem which is a youth
education program for learners at previously disadvantaged
rural schools. Iress’ support will enable improvement of the
tech stack.
• Stin Technology, for the acquisition of equipment and training
to enable further expansion of their business.
• Abottech, a software development company where Iress
funding will replace end of life equipment to enable business
development.
Suppliers by country
Australia
United Kingdom
United States
New Zealand
59.9%
16.5%
0.9%
0.6%
222
128
55
9
France
South Africa
Canada
Singapore
11.3%
4.5%
4.3%
1.2%
85
416
23
16
Hong Kong
Ireland
Netherlands
Germany
0.4%
0.2%
0.2%
<0.1%
15
7
5
4
(location based on business operating address)
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGSocial 36
Governance
2023
key achievements
• Continued to embed our revised risk management
framework to support our desired risk culture
37
2024 key objectives
Continuing from the 2023 Strategy, the Global
InfoSec team will continue to focus and develop
the following areas:
• Security Training and Awareness: foster a
security‑aware culture and communicate security
policies and procedures in order to effectively and
safely deliver our operational effect.
• Governance, Risk and Compliance: ensure robust
governance of our systems and product delivery to
ensure compliance with industry specific standards
and address security risks and vulnerabilities.
• Cyber security Monitoring and Incident Response:
monitor cyber security threats and respond
to security incidents to proactively defend the
business from threat.
Relevant
UN SDGs
Iress believes that maintaining a high standard of corporate governance
is essential to sustainable long-term performance and value creation for
shareholders, stakeholders and the communities in which we operate.
Iress operates under a well-established corporate governance framework
that is regularly reviewed by our Board.
The governance practices in place reinforce and affirm Iress’ obligations pursuant to the Corporations Act 2001 (Cth)
(Corporations Act), the Australian Securities Exchange (ASX) Listing Rules and other applicable laws and regulations.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGGovernance 38
Governance
Iress’ Constitution also reflects many
of these corporate governance
mechanisms to ensure, amongst other
things, prudent decision making and
appropriate oversight.
Furthermore, Iress’ Board Charter sets out the functions and
responsibilities of the Board with respect to Iress Limited and
its subsidiaries (the Group). The Board Charter is intended to
supplement the description of the Board’s responsibility set out
in the Constitution. The Board has ultimate responsibility for
approving strategy and setting policy regarding the business
and affairs of the Group.
Iress’ Board is committed to complying with the ASX’s Corporate
Governance Council’s Corporate Governance Principles and
Recommendations issued from time to time by the ASX Corporate
Governance Council. During 2023, Iress complied with each of the
Corporate Governance Principles (4th Edition), as set out in the
2023 Corporate Governance Statement.
Governance structure
The Board’s responsibility includes overseeing the Company’s
strategy, policies, processes and performance in relation to ESG
matters. The risk management function of the Board is overseen
by the Audit & Risk Committee, which is responsible for, amongst
other things, ESG at Iress.
In 2023 due to the company‑wide restructure, operational
responsibility for ESG moved from the Legal function to Corporate
Affairs & Marketing. The Chief Corporate Affairs & Marketing
Officer is now the risk owner for ESG risks, with support from the
Chief Risk Officer who has responsibility for reviewing all material
risks annually.
In addition, the Chief Operating Officer is the appointed
Leadership Team ‘Climate Sponsor’ and accountable for ensuring
information flows to the ARC through bi‑annual board papers.
Risk management
As a global technology company and licensed financial services
business, the dynamic market and business in which Iress
operates has evolved, and will continue to do so. Accordingly,
a robust, consistent and effective risk management framework
which proactively identifies, manages and mitigates risks
is essential for the ongoing success of Iress. In 2023, we
further enhanced our risk management framework, which is
underpinned by the principles outlined in ISO 31000: 2018 –
Risk Management Guidelines.
Risk governance structure
All people at Iress have a responsibility to integrate risk
management practices into their day‑to‑day business activities
to support the achievement of Iress’ strategic goals and
objectives. The following governance structures are in place
and provide oversight of the effective operation of our risk
management strategy and framework:
• The Iress Board is responsible for demonstrating leadership
and commitment to enable a positive risk culture, including
approving Iress’ risk management strategy and framework,
establishing appropriate governance structures for risk
oversight, determining organisational appetite for risk, and
ensuring appropriate policies and procedures are in place to
oversee and manage risk. The risk management function of the
board is performed by the Audit and Risk Committee (ARC), the
composition, roles and responsibilities of which are set out in
the ARC Charter. The ARC is responsible for ensuring Iress has
a structured and comprehensive risk management system in
place and amongst other things, monitoring material changes
to the Company’s risk profile and making recommendations in
relation to changes that should be made to the Company’s risk
appetite.
• The Executive Risk Committee (ERC) reports to the ARC on
Iress’ key risks and the application of the risk management
framework, specifically the extent to which it believes risks are
being adequately managed.
Cyber security and data protection
Data privacy and security
In 2023, a Data Governance Council (“DGC”), with cross‑
functional representation, was formed to further enhance
governance of data management in the organisation. The DGC
has since released an artificial intelligence (“AI”) policy, data
ethics policy, and approved AI list to the organisation.
In addition to the formation of the DGC, there have also been
two privacy appointments working collaboratively to continually
uplift the organisation’s privacy program including the recent
revision of the internal global data breach register and privacy
impact assessment (“PIA”)/data protection impact assessment
(“DPIA”) process.
Certifications and standards
Iress continues to be proactive in gaining and maintaining
internationally recognised Certifications. We renewed ISO 27001
globally in late 2023, but are committed to expanding the volume
of Certifications by certifying each business unit independently
throughout 2024 increasing the auditing and external
verifications process.
Additionally, we are well advanced with achieving the SOC 2
Certification Standard in the Wealth Management business unit
having undergone a readiness assessment and SOC 2 Type 1
audit with Ernst & Young, our objective is to achieve this by
early 2024.
39
Memberships and partnerships
Global
FISD (Financial Information Services Association of SIIA)
FIX Trading Community
The Software & Information Industry Association (SIIA)
Australia
ASFA Affiliation of Superannuation Practitioners (ASP)
ATO APRA Funds Operational Insights Report Design Working Group
ATO Online Superannuation Screens Communications Working Group
ATO SMSF Rollovers Design Group
ATO Super Administration Stakeholder Group (SASG)
ATO Superannuation Data Standard Technical Group (SDSTG)
ATO SuperStream Implementation Working Group
ATO Technical Services Working Group (TSWG)
Australian Custody Services Association (ACSA)
Financial Executive Women (FEW)
Financial Executives Institute (FEI)
Financial Services Council of Australia (FSC)
Stockbrokers and Investment Advisers Association (SIAA)
The Association of Superannuation Funds of Australia (ASFA)
Women in Super (WiS)
Canada
Canadian Security Traders Association (CSTA)
Investment Industry Regulatory Organisation of Canada (IIROC)
(Market Rules Advisory Committee and LEI Implementation
Committee)
Portfolio Management Association of Canada (PMAC)
New Zealand
Financial Advice New Zealand
FinTechNZ
South Africa
SA Securities Lending Association (SASLA)
United Kingdom
Association of Mortgage Intermediaries (AMI)
Building Societies Association (BSA)
Income Protection Task Force (IPTF)
Intermediary Mortgage Lender Association (IMLA)
ORIGO (Industry Standards Body for Life and Pensions – UK)
The Personal Investment Management and Financial Advice
Association (PIMFA)
Data protection impact assessments
We undertake data protection impact assessments to look at
how and where we process data across our business, and we
seek to take a best practice review of data above the defined
statutory requirement to instigate such assessments. This
process ensures privacy risks are appropriately considered
and mitigated to ensure compliance with applicable legal and
regulatory requirements. In 2023, we completed multiple data
protection impact assessments, launched a new template
and began implementing improved tracking and review of
these assessments.
Supplier security assessments
Iress robustly manages suppliers through a well documented
procurement due diligence process. The Information Security
team assesses each and every supplier for cyber risk as well as
scores and monitors suppliers via external monitoring tools (such
as Upguard) for real‑time changes that may increase cyber risk.
Security awareness and training
Iress recognises that our people are our best cyber defence and
we have invested significantly in awareness training. In 2023,
we updated our Acceptable Use Policy to align with contemporary
expectations and this has been sent to all users (including
contractors and third‑party business partners) as a mandatory
read and acceptance which we also record.
We continue to conduct yearly training in our online platform with
several cyber modules with completion rates for 2023 currently
at 98.7%.
Responsible and ethical business practices
At Iress, we maintain and report against a set of stringent
corporate principles. A summary of our key corporate
governance documents is outlined below, each of which is
available on our website.
Tax transparency
In 2023, we published our fourth annual tax transparency report
detailing our tax contribution, tax governance and strategy, and
international related party dealings for the 2022 financial year.
The report was prepared in accordance with the guidelines set
out in the voluntary Tax Transparency Code (TTC) recommended
by the Australian Board of Taxation and endorsed by the
Australian Treasury.
Whistleblower protection
Iress’ whistleblower policy applies to all Iress people, including
part‑time and casual employees, officers, agency workers,
contractors and suppliers and their employees (where relevant)
and is subject to applicable laws as they apply to the local Iress
entity. It encourages people to report any suspected reportable
conduct with the knowledge that their concerns will be taken
seriously, appropriately investigated, and that their confidentiality
will be respected. It also provides people with guidance around
how to raise concerns and reassures people that they can raise
any concerns and complaints of reportable conduct without fear
of discrimination, intimidation, disadvantage or reprisal.
Iress LimitedStrategic ReportFinancial ReportAnnual Report 2023ESGGovernance 40
Iress leadership
Our greatest asset at Iress is our people. Supporting
them is a leadership team committed to achieving
Iress’ mission to go beyond, act smart and win together.
41
Marcus Price
Chief Executive
Officer
Cameron
Williamson
Chief Financial
Officer
Harry Mitchell
Group
Executive,
Wealth & UK
Ana Smith
Chief
Transformation
& Strategy
Officer
Jason Hoang
CEO, Trading &
Market Data
Paul Giles
CEO,
Superannuation
Kelli Willmer
EGM APAC
Wealth
Kelly Fisk
Chief Corporate
Affairs & Marketing
Officer
David Hentschke
Chief Innovation
Officer
Justin Schmitt
Chief Operating
Officer
Julia McNeill
Chief People
Officer
Chris Donlon
Acting Chief
Technology Officer
Charissa
Astley-Turner
Chief Risk Officer
Additional LT members:
Ian McKenna
Chief Information
Security Officer
Eric Kuah
Chief Global Market
Data Officer
Iress LimitedStrategic ReportESGFinancial ReportAnnual Report 2023 42
Board of Directors
Roger Sharp
Independent
Non-Executive Director
(since February 2021)
Chair
(since May 2021)
Roger has more than 30 years’
global experience in markets,
technology and governance.
He has advised, built, run
and chaired a number of
technology companies.
Roger’s current governance
roles include chairing Webjet
Limited (director since
January 2013 and Chair
since 21 June 2017) and the
Lotteries Commission of
New Zealand (Chair since
1 July 2020). He is also
the founder of boutique
technology investment bank,
North Ridge Partners and
the founder of Whakatipu
Hangarau Trust, a not‑for‑profit
trust whose mission is to build
a world‑class technology
sector in Queenstown Lakes
District, New Zealand. His past
executive roles included Global
Head of Technology and CEO
of Asia Pacific Securities for
ABN AMRO Bank.
Marcus Price
Managing Director and
Chief Executive Officer
(since October 2022)
Marcus Price has over
25 years’ experience building,
leading and managing teams
in the financial services and
technology sectors. Mr Price
was the founding CEO of
Property Exchange Australia
(PEXA) for over nine years,
from May 2010 to December
2019. From its beginnings as
a start‑up, Mr Price oversaw
PEXA’s growth into a company
capturing more than 75% of
all property transactions in
Australia, with a valuation of
$1.6bn upon its trade sale in
2018. Prior to this, Mr Price
held senior positions with NAB,
the Boston Consulting Group,
Certane Group and previously
served as Chief Executive
Officer and Managing Director
of businesses for Equifax and
Dun & Bradstreet. Mr Price
was a Director of Credit Clear
Limited from November 2020
to November 2022.
Julie Fahey
Independent
Non-Executive Director
(since October 2017)
Chair of the People and
Performance Committee
(since February 2020)
Julie has over 30 years of
experience in technology,
including in major
organisations such as Western
Mining, Exxon, Roy Morgan,
General Motors and SAP,
covering consulting, software
vendor and chief information
officer roles. In addition to
her industry experience,
Julie spent 10 years at
KPMG as a partner with the
firm, during which time she
held roles as national lead
partner telecommunications,
media and technology, and
national managing partner
– markets. Julie was also a
member of the KPMG National
Executive Committee. Julie
is currently a member of
the Board of Datacom
Group, and Australian Red
Cross LifeBlood. Julie is also
currently a Non‑Executive
Director of Australian
Foundation Investment
Company (appointed
April 2021) and was a
Non‑Executive Director of
Seek Limited from July 2014
until November 2023.
Niki Beattie
Independent
Non-Executive Director
(since February 2015)
Niki has more than 30 years’
experience in financial
technology and capital
markets. She currently runs
Market Structure Partners,
a strategic consulting firm for
financial market participants
and policy makers. Prior to
that she spent more than a
decade in senior positions at
Merrill Lynch International.
She is currently Chair of
ClearToken, a clearing
house for digital assets and
a Director of the Financial
Markets Standards Board,
FMSB, a member‑owned,
international standards
setting body.
She was previously Chair of
privately owned XTX Markets,
a quantitative market maker
and of Aquis, a listed pan
European exchange and
technology business as well
as a Board Director of Kepler
Cheuvreux UK Ltd, a French
brokerage firm, MOEX, the
Moscow Exchange and Borsa
Istanbul, the Turkish exchange.
She also spent 12 years
on the Secondary Markets
Advisory Committee for the
European Securities Markets
Authority and six years on
the Regulatory Decisions
Committee of the UK’s
Financial Conduct Authority.
Trudy Vonhoff
Independent
Non-Executive Director
(since February 2020)
Chair of the Audit & Risk
Committee
(since May 2021)
Trudy has over 20 years’
experience in retail banking,
financial markets and
investment. She is currently a
director of Credit Corp Group
Limited (since September
2019), Cuscal Limited (since
April 2019) and Australian
Cane Farms Limited (since
April 2021). Previous
directorships include AMP
Bank, A2B (Cabcharge),
Ruralco Holdings Limited,
Tennis NSW and the Westpac
Staff Superannuation Fund.
For 13 years Trudy held senior
executive roles at Westpac
and AMP across retail banking,
finance, risk, technology &
operations, and agribusiness.
Michael Dwyer AM
Independent
Non-Executive Director
(since February 2020)
Anthony Glenning
Independent
Non-Executive Director
(since October 2022)
Michael has over 35 years’
experience in superannuation
and investment, including
14 years as CEO of First State
Super. He is a director of
the Global Advisory Council
of Tobacco Free Portfolios
and the Sydney Financial
Forum. Since 1998 Michael
has also been a director and
subsequently Chair and now
Patron of Australia for UNHCR,
the private sector partner
of the UN Refugee Agency.
He is a life member of ASFA
(Australia’s superannuation
industry association) and the
Fund Executives Association.
After serving as a director,
on 31 August 2020 Michael
was appointed as the Chair
of TCorp (New South Wales
Treasury Corporation). He is
also a member of the ASIC
Consultative Panel, Chair of
MSquared Capital Advisory
Committee and member of
the Hope Housing Advisory
Committee.
Mr Glenning has over 25 years’
experience in the software
industry, 14 of those living and
working in Silicon Valley. He is
currently the fund manager for
Skalata Ventures, leading the
investment into early‑stage
companies and helping them
scale and grow into significant
and sustainable businesses.
He is also a non‑executive
director of Pro Medicus Limited
(ASX.PME) since May 2016, a
leading provider of enterprise
medical imaging and practice
management software, and
Austco Healthcare Limited
(ASX.AHC) since September
2018, an international
provider of healthcare
communication and clinical
workflow management
solutions. In 1999, Mr Glenning
founded Tonic Systems, a
web application development
company which he built up
over eight years and sold to
Google in 2007 as part of the
Google Docs suite of products.
He worked with Google post‑
acquisition where he was
a senior software engineer
for two years. From 2010
to 2018, Mr Glenning was
an investment director for
Starfish Ventures, based in
Melbourne, a venture capital
firm specialising in Australian
high‑growth technology
businesses, and during that
time held directorships at
Aktana, Atmail, DesignCrowd,
MetaCDN and Nitro Software.
43
Michael Bowan
Company Secretary
Michael joined Iress in October
2023, on an interim basis
while Iress commences a
search for a permanent
replacement. He has a BA/
LLB (Hons) from the Australian
National University and has
been admitted as a solicitor in
NSW for more than 30 years.
Michael has long‑standing
executive experience in
banking and energy, including
eight years as General
Counsel and Company
Secretary of a listed bank,
six years as General Counsel
and Company Secretary of
the regional NSW electricity
distributor and six years
as Chief of Staff to a major
Australian bank’s CEO.
Iress LimitedStrategic ReportESGFinancial ReportAnnual Report 2023 44
Material business risks
45
The material business risks that have the potential to impact Iress’ financial position,
future financial results, operations and the success of our strategy are outlined
below, together with mitigating actions undertaken to minimise these risks. Climate
change risk (and ESG more broadly) forms a part of Business Operations risk and is
also addressed separately in Iress’ ESG Report.
Risk
Nature of risk
Mitigating actions
Risk
Nature of risk
Mitigating actions
Strategic
Risk
The risk that Iress does not meet
its strategic objectives.
Transformation
Risk
The risk that Iress does not
successfully execute on its
transformation agenda.
Financial Risk
(including
foreign
exchange,
interest rate,
funding and
liquidity)
The risk that Iress is unable to
meet its financial obligations,
incurs losses from failure of
counterparties paying their
debt, losses from unexpected
changes in market rates and
prices or impairment of assets.
Legal and
regulatory
risk
The risk of legal or regulatory
sanction/loss from failure to
comply with our contractual
requirements, licensing, laws
and regulations.
Iress has established strategy planning processes that appropriately consider strategy
determination through investigation and analysis, consideration of competition risks, as
well as any potential structural changes in the markets that we operate in.
Iress’ Group Strategy team partners with external experts, as appropriate, to provide
additional support and governance. Group and Business Unit strategic plans are endorsed
and overseen by the Leadership Team and the Board.
Iress seeks to manage and mitigate risks associated with the execution of business
transformation initiatives linked to its strategic objectives. These initiatives are designed
to pursue growth opportunities that are likely to deliver significant shareholder value in a
reasonable time frame.
Iress’ Transformation Office, with assistance from external experts, provides project
management disciplines and governance oversight. Progress and delivery against agreed
milestones are tracked through an industry‑recognised system, with key metrics and
reporting overseen by the Leadership Team and the Board.
Iress aims to manage its material financial risks in accordance with the Board‑approved
Treasury Policy.
Iress mitigates foreign exchange risk associated with its international operations by
funding these investments in the local currency. Foreign currency transaction risks can
be hedged, where appropriate. Iress does not hedge translation risk on foreign currency
earnings.
Iress aims to manage its material Legal and Regulatory Risks in accordance with
applicable laws, commercial principles as they apply to our contractual obligations and
corporate governance principles.
Additionally, Iress has dedicated Legal and Compliance teams who oversee the
management of regulatory requirements and the implementation of regulatory change
across the Group. These teams also closely monitor regulatory developments globally and
remain proactively engaged with relevant regulatory bodies and policy makers across the
jurisdictions in which we operate.
Technology
and Information
Security
The risk of an event or events
occurring which may result
in Iress’ or Iress’ client’s
information being unavailable,
lost, stolen, copied or otherwise
compromised with adverse
consequences for the business
(legal, regulatory, financial,
reputational or other).
Iress seeks to proactively manage its material technology and information security risks
in accordance with the Board‑approved Information Security Strategy and information
security standard ISO 27001, whilst maintaining strong alignment with recognised industry
and organisational frameworks.
Iress endeavours to maintain a highly skilled team of technology and information security
professionals. Information security risk is overseen by a dedicated global information
security function, led by the Chief Information Security Officer, who is responsible for
ensuring appropriate systems and processes are in place, in line with Iress’ Information
Security Strategy. Executive‑level oversight is provided via the Executive Risk Committee,
while material information security risks and issues are also escalated to the Board Audit &
Risk Committee for oversight.
Iress’ Global Information Security Management System (ISMS) is independently certified to
meet the global ISO 27001 standard.
Business
Operations
Risk
The risk impacting day‑to‑day
operations of Iress, including
business disruption events,
failure of internal processes
and systems, failure of material
supplier fulfilment, damages
resulting from mismanagement
of data and financial crime.
Iress aims to minimise its material Business Operations risk through robust systems,
efficient processes and effective controls.
Iress’ 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 disruption minimised.
Iress’ material third party suppliers are onboarded with sufficient due diligence and are
subject to ongoing monitoring and oversight.
People and
Culture Risk
The risk resulting from
people‑related risks impacting
the delivery of our strategy.
Iress aims to manage its material People and Culture risks in accordance with approved
People policies, which set the expectations and guide the behaviour of our people and
the company.
Iress endeavours to retain key individuals with the skills required to fulfil our strategic
objectives.
Iress LimitedStrategic ReportESGFinancial ReportAnnual Report 2023 46
Financial Report
47
Operating & Financial Review
For the year ended 31 December 2023
Operating & Financial Review
Operating revenue
Operating expenses
Underlying EBITDA
Net Profit After Tax
2023(1)
$m
625.7
(497.4)
128.3
(137.5)
2022
$m
615.6
(469.2)
146.4
52.7
2023
vs
2022
2%
6%
(12%)
(361%)
(1) Iress results above are shown on a reported basis using foreign exchange rates applicable through the year. On a constant currency basis and applying the
2022 foreign exchange rate to compatible 2023 results, the impact is negligible and would result in a $0.4m increase to 2023 Underlying EBITDA.
Earnings and dividends per share
Basic earnings per share
Dividends per share
APAC Trading and Global Market Data
APAC Wealth Management
Superannuation
Managed Portfolio – UK
Managed Portfolio – Other
Total group
2023
Cents
per share
2022
Cents
per share
(76.4)
–
28.6
46.0
Operating revenue(1)
Underlying EBITDA (2)(3)
2023
$m
178.5
130.4
54.2
167.9
94.7
625.7
2022
$m
174.4
132.7
49.9
159.0
99.6
615.6
2023
vs
2022
2%
(2%)
9%
6%
(5%)
2%
2023
$m
40.5
47.2
(2.5)
34.7
8.4
2022
$m
45.0
55.1
1.3
35.5
9.5
128.3
146.4
2023
vs
2022
(367%)
(100%)
2023
vs
2022
(10%)
(14%)
(292%)
(2%)
(11%)
(12%)
(1) Operating revenue for each segment captures revenue generation directly attributable to that segment.
(2) Underlying EBITDA for each segment represents segment operating revenue less direct expenses associated with operating the segment and indirect
expenses from corporate functions providing scale benefits across the Group which have been allocated to segments using functional drivers.
(3) New segments commenced effective 1 July 2023 with historic information for 2022 and 1H23 restated to pro‑forma when operating under prior segments
across the Iress Group.
Operating revenue
Operating revenue in 2023 was $625.7m, a 2% increase over the previous year. The increase was substantially attributable to the
Superannuation and Managed Portfolio – UK segments, while there was a decline in the Managed Portfolio – Other segment on the back
of the sale of the Managed Fund Administration business on 1 October 2023.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA)
Underlying EBITDA, the Group’s preferred business performance measure, decreased 12% to $128.3m over the year as a result of an
increase in costs. Inflationary pressures were evident in both employee and non‑wage opex, with pay rises and third‑party input costs
contributing to margin pressure. Iress undertook significant restructuring initiatives to arrest cost growth momentum which included a
reduction in the number of full time equivalent employees (FTE’s) by 21% (15% when MFA is excluded).
APAC Trading & Global Market Data
Revenue for APAC Trading & Global Market Data increased 2% over the course of the year to $178.5m. This was achieved despite
a challenging trading environment which saw equity trading volumes 30% lower than 2022 and notable consolidation across the
industry. At the same time many clients remained cautious in the inflationary operating environment leading to subdued new business
wins through the year. Costs were higher reflecting the ongoing investment in people, infrastructure and technology necessary to
support customer service delivery.
APAC Wealth Management
Revenue for APAC Wealth Management decreased by 2% in 2023 mainly due to a reduction in non‑recurring revenue as client projects
and transitions completed. Operating costs were higher, largely a result of salary inflation and initiatives to improve the user experience
of Xplan. The business executed a program of cost reduction and pricing discipline initiatives which offset some of these headwinds.
Superannuation
The Superannuation business grew revenue by 9% with increased demand for consulting services, contract renegotiations and new
client wins including two newly merged entities. The business also saw an increase in costs from salary inflation, restructuring activity
and notable remediation projects.
Managed Portfolio – UK
The UK component of the Managed Portfolio grew revenue by 6% in 2023, driven by new client wins across the Sourcing and the
Mortgages business lines, while UK Wealth grew as a result of increased project work with enterprise clients. Salary inflation and higher
third‑party software costs led to an increase in costs from the prior year.
Managed Portfolio – Other
Revenue decreased overall in the Managed Portfolio – Other, substantially due to the sale of the MFA business in October. While the
Canadian business saw revenue growth, it was partially offset by a reduction in revenue in South Africa. Both the South African and
Canadian businesses were prudent on cost management throughout the year.
Net Profit after Tax (NPAT)
Underlying EBITDA
Amortisation, depreciation, derecognition and impairment expense
Gains on disposal of subsidiary
Non‑operating and significant items(1)
Profit before interest and income tax expense
Net interest and financing costs
Income tax expense
Net profit after income tax expense
2023
$m
128.3
(193.4)
17.6
(57.8)
(105.3)
(21.8)
(10.4)
(137.5)
2022
$m
146.4
(43.4)
–
(22.4)
80.6
(12.7)
(15.2)
52.7
2023
vs
2022
(12%)
346%
–
158%
(231%)
72%
(32%)
(361%)
The Group recorded a statutory net loss after tax for the year of $137.5m (2022: $52.7m profit). The significant differences between
the Group’s headline Underlying EBITDA measure and the statutory NPAT result relate to the non‑cash amortisation, depreciation and
impairment expense, and the Group’s non‑operating and significant items during the year.
Non‑operating and significant items substantially relate to project and transformation related expenses that are not deemed to
form part of the ongoing cost base of the business and are excluded to provide greater clarity on underlying business performance.
Non‑operating and significant items increased this year to $57.8m (2022: $22.4m) and captured the following key items:
• Notable one‑off technology uplift projects ($16.9m)
• Transformation program expenses ($15.1m)
• Transformation led redundancy costs ($13.6m)
• M&A related costs ($6.9m)
• Other one‑off non‑operating costs ($5.3m).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportOperational & Financial Review 48
Operating & Financial Review (continued)
For the year ended 31 December 2023
The non‑cash amortisation, depreciation, de‑recognition and impairment expense increased from $43.4m in 2022 to $193.4m.
This was notably impacted by an impairment of $130.4m on the UK goodwill carrying value which was written down in the first half of
the year. A number of capitalised software intangible assets were also de‑recognised during the year resulting in an additional $13.3m
write‑down.
During the year, Iress sold the Managed Funds Administration (MFA) business for proceeds, after purchase price adjustments, of
$50.5m with $5m remaining in escrow for a period of 12 months. A $17.6m gain on the sale has been recognised with proceeds from
the sale used to retire debt.
Net interest and financing costs increased by 72% to $21.8m through the year ($2022: $12.7m). This was primarily driven by higher
average debt levels over the course of the year and markedly higher interest rates on the floating rate part of the borrowings.
Statement of Financial Position
Cash and cash equivalents
Intangible assets
Other current and non‑current assets
Borrowings
Other current and non‑current liabilities
Net assets
2023
$m
43.9
550.7
197.6
(363.6)
(156.6)
272.0
2022
$m
63.4
725.0
211.7
(388.4)
(177.9)
433.8
2023
vs
2022
(31%)
(24%)
(7%)
(6%)
(12%)
(37%)
Cash and cash equivalents reduced by $19.5m or 31%, due to an improvement in cash management processes and working
capital requirements.
Intangible assets reduced by $174.3m to $550.7m, a 24% decline, primarily due to a write down in the carrying value of goodwill in
the UK business of $130.4m. An additional $31.2m of intangible assets were reduced as part of the sale of MFA, while there was
a de‑recognition of $13.3m of intangible assets following a strategic review of capital projects in 1H23. During the year $14.1m of
internally generated development costs were capitalised, 29% lower than last year (2022: $19.9m).
Net debt, as measured by gross borrowings less cash and cash equivalents, declined $5.8m to $320.3m over the year. Net debt
peaked at $375.8m at 30 June before declining in the second half of the year as proceeds from the sale of the MFA business and
positive free cash flow were used to retire debt.
Other liabilities fell 12% to $156.6m through the year, predominantly due to a decrease in lease liabilities of $14.9m as property
requirements were resized with lower FTE across the business.
Dividends
During the year, Iress paused the payment of its 2023 dividend pending the completion of a broader Capital Management Plan.
Headline Business Performance Change
In 2023, Iress undertook to amend its headline business performance measure from Segment Profit to Underlying EBITDA.
This involved the transfer of share based payment expenses, that were previously excluded in Segment Profit, into the cost base
as they were considered an important part of employee remuneration.
Following the announcement of the transformation program in 1H23, Iress committed to review the way it presented its financial
performance and provide enhanced transparency around items not considered part of the ongoing cost base of the business.
These have historically been reported as significant and non‑operating items, however without clearly defined classifications.
49
As a result of a recent review, Iress will be changing its headline performance measure to Adjusted EBITDA from 2024. This is
represented by Reported EBITDA adjusted for mergers and acquisition items, transformation related costs including costs to achieve
such as restructuring and redundancy, and share based payments expense.
Adjusted EBITDA is considered to better align with Iress’ business unit accountability and provide improved transparency across Iress’
operating segments. The primary change from Underlying EBITDA is the transition of non‑recurring technology uplift projects back into
the underlying cost base of the business.
A reconciliation from Underlying EBITDA to Adjusted EBITDA for the year is provided below:
Underlying EBITDA
Tech uplift & non‑recurring projects – staff costs
Other non‑recurring items – Non‑staff costs
Adjusted EBITDA
2023
$m
128.3
(16.9)
(5.3)
106.1
2022
$m
146.4
(10.6)
(5.8)
130.0
2023
vs
2022
(18.1)
(6.3)
0.5
(23.9)
The Adjusted EBITDA measure will be supplemented with NPATA as an additional business performance measure from 2024.
NPATA is represented as Statutory NPAT adjusted for the after‑tax effect of amortisation and impairment of acquired intangible assets;
and M&A related gains/losses on the disposal of businesses.
NPATA is considered a closer proxy to the free cash flow generation of the business and will be used as the basis for the dividend
payout going forward.
Capital Management Plan
Iress has undertaken a detailed review of its capital management settings in order to provide a robust financial platform to meet
strategic goals. The aim of the review was to establish optimal capital settings for a stronger balance sheet, while creating capacity
to reinvest back into the business and reward shareholders over time via dividends and capital growth. The review was centred around
an optimal level of leverage for the business and appropriate dividend policy, while creating capacity for R&D investment.
As a result of the review, Iress is seeking to reduce leverage over the coming year to a targeted range of 1.0‑1.5x EBITDA from the
current level of 2.5x. This is to be achieved by the sale of non‑core assets and the retention of free cash flow.
The dividend will remain paused until the target leverage range is achieved and at that time will be subject to consideration for
recommencement by the Board. The dividend payout will be made out of NPATA with a view to increasing it over time as transformation
led activity is completed and the balance sheet is stronger. The level of the dividend will be set having regard to ongoing R&D
requirements and capital for other strategic initiatives.
Iress believes these capital settings will deliver a stronger balance sheet going forward while balancing profits, capital reinvestment
and dividends.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportOperational & Financial Review 50
Directors’ Report
For the year ended 31 December 2023
The Directors present their report and the annual financial report for Iress Limited (the Company) and its consolidated subsidiaries
(together referred to as Iress Group or the Group) for the 2023 Financial Year.
Directors
The Directors of Iress Limited during the year ended 31 December 2023 and up to the date of this report are set out below:
Name
Tenure
R Sharp
M Price
N Beattie
M Dwyer
J Fahey
A Glenning
T Vonhoff
Chair since May 2021 and Independent Non‑Executive Director since February 2021
Independent Non‑Executive Director since July 2022 and Managing Director and Chief Executive Officer since October 2022
Independent Non‑Executive Director since February 2015
Independent Non‑Executive Director since February 2020
Independent Non‑Executive Director since October 2017 and Chair of the People & Performance Committee since February 2020
Independent Non‑Executive Director since October 2022
Independent Non‑Executive Director since February 2020 and Chair of the Audit & Risk Committee since May 2021
Directors’ Meetings
The following table sets out the number of meetings of the Group’s Board of Directors and of each Board Committee held during the year
ended 31 December 2023, and the number of meetings attended by each Director as a member of the Board or relevant Board Committee.
Directors who are not members of a particular Board Committee are entitled to attend meetings in a non‑voting capacity and are given
access to all Board Committee papers and minutes.
Director
R Sharp
M Price
N Beattie
M Dwyer
J Fahey
A Glenning
T Vonhoff
Board Meetings
Audit & Risk
People & Performance
Eligible
Attended(1)
Eligible
Attended
Eligible
Attended
15
15
15
15
15
15
15
15
15
14
15
13
15
15
*
*
*
4
4
*
4
*
*
*
4
4
*
4
*
*
5
5
5
*
5
*
*
5
5
5
*
5
* Not a member of this committee.
(1) Where attended meetings are less than eligible, the non‑attended meetings were called on short notice.
Principal activities
Iress is a technology company designing and developing software and services for the financial services industry. Iress operates
across the Asia Pacific, the United Kingdom & Europe, Africa, and North America regions.
Operating and Financial Review
The Operating and Financial Review (OFR) containing information on the operations and financial position of Iress is set out in the
Strategic Report on pages 2 to 9 and the Material business risks and OFR on pages 44 to 49 of this Annual Report.
51
Changes in state of affairs
On 1 October 2023, Iress sold its Managed Funds Administration
(MFA) business, accounted for in the subsidiary OneVue Fund
Services Pty Ltd which was part of the Managed Portfolio – Other
segment. As at 1 October 2023, the carrying amount of MFA’s
total assets amounted to $35.7 million and the total liabilities
amounted to $2.9 million. Gross cash proceeds of $50.5 million
were received upon completion of which $5.0 million remains in
escrow until 1 October 2024.
Other than the above, there was no significant change in the
state of affairs of the Group during the financial year.
Events subsequent to the Statement
of Financial Position date
There has been no matter nor circumstance which has arisen
since the end of the financial year which has 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 subsequent years.
Indemnification of Officers & Auditors
During the year, the Company paid a premium in respect of
a contract insuring each of the Directors of the Company (as
named above), the Company Secretary, each of the Executive
Officers of the Company, and any related body corporate against
a liability or expense incurred in their capacity as a Director,
Secretary or Executive Officer to the extent permitted by the
Corporations Act 2001. Further details have not been disclosed
due to confidentiality provisions in the insurance contract.
In addition, the Company has entered into a Deed of Indemnity,
which ensures that a Director or an officer of the Company will
generally incur no monetary loss as a result of defending actions
taken against them as a Director or an officer. Certain actions are
specifically excluded, for example, penalties and fines which may
be imposed in respect of breaches of the law.
To the extent permitted by law, the Company has agreed to
indemnify its auditors, Ernst & Young, as part of the terms of its
audit engagement agreement against claims by third parties
arising from the audit (for an unspecified amount). No payment
has been made to indemnify Ernst & Young during or since the
financial year.
Audit and non-audit services
Details of the amounts paid or payable to the Group’s external
auditor, Ernst & Young (2022: Deloitte Touche Tohmatsu) for
audit and non‑audit services provided during the year are set
out in Note 1.6(b) to the financial statements. Ernst & Young was
appointed as auditor on 4 May 2023 and Mr David Petersen
commenced as the lead audit partner for the first year ended
31 December 2023.
During the year, the auditor performed certain other services
in addition to its audit responsibilities. The Board is satisfied
that the provision of non‑audit services during the year by the
auditor is compatible with, and did not compromise the auditor
independence requirements of the Corporations Act 2001 for the
following reasons:
• All non‑audit services were subject to the corporate governance
procedures adopted by the Company to ensure that they do not
impact the integrity and objectivity of the auditor.
• The non‑audit services provided did not undermine the general
principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants as they did not
involve reviewing or auditing the auditor’s own work, acting in
a management or decision‑making capacity of the Company,
acting as an advocate of the Company or jointly sharing risks
or rewards.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 (Cth), is set out
on page 82.
Rounding of amounts
The amounts shown in this report and in the financial statements
have been rounded off, except where otherwise stated, to the
nearest thousand dollars, the Company being in a class specified
in the ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191, issued by the Australian Securities
and Investments Commission.
Corporate governance
The corporate governance statement is located on the
Iress website:
https://www.iress.com/trust/corporate‑governance/corporate‑
governance‑statement/.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportDirectors’ Report 52
Remuneration Report
For the year ended 31 December 2023
53
Letter from Julie Fahey, Chair of the People and Performance Committee
Dear shareholders,
On behalf of the People & Performance Committee (PPC), I am pleased to present Iress’ Remuneration Report for the financial
year ended 31 December 2023 which sets out the remuneration information for Iress’ Key Management Personnel (KMP). This
group covers Executive Key Management Personnel and the Non‑executive Directors (NEDs). For the purposes of this report:
‘Executive KMP’ refers to the Managing Director and Chief Executive Officer (Group CEO) and those Executives considered to have
responsibility for planning and directing Iress' operations. As shareholders are aware, this has been a year of substantial change
for Iress. The start of our transformation program has had a significant impact on our structure, our KMP and the remuneration
framework in 2023. This letter summarises these changes as well as 2023 remuneration outcomes and proposed changes to our
Remuneration Framework in 2024.
Impact on Structure, KMP and 2023
Remuneration Framework
Organisational Structure
In July 2023, Iress pivoted from a global functional structure
to a product segment Profit and Loss structure. The new
structure has provided clearer lines of accountability and
allowed for the introduction of performance metrics which
focus on sales, account management, customer service
and profitability. The new structure also introduced a new
leadership team which is reflected in a new KMP group,
effective 1 July 2023. The new KMP group continues to include
the Group CEO and the Chief Financial Officer, and introduces
the Executives accountable for product‑led business units,
including Group Executive Wealth & UK, CEO Trading & Market
Data, and CEO Superannuation.
2023 Remuneration Changes
As highlighted in our 2022 Remuneration report and in
subsequent shareholder communications, the Board undertook
to review the company’s remuneration framework following the
appointment of M Price as Group CEO. Considering feedback
from various stakeholders and, in particular, feedback from
shareholders regarding the fixed nature of Equity Rights, the
Board replaced the 2023 Equity Rights with an at‑risk reward in
the form of a Short Term Incentive (STI).
2024 Additional Remuneration Changes
The previous Long Term Incentive (LTI) incorporating
Performance Rights, is proposed to be replaced by Share
Appreciation Rights (SARs) in 2024. SARs are a form of LTI paid
out when objectives are achieved and the Iress share price
appreciates in value above the option exercise price. Additionally,
an STI deferral will be introduced, and Minimum Shareholding
Requirements (MSR) will be adjusted to account for historic
Equity Rights no longer forming part of executives’ fixed salaries.
FY22 Remuneration
Framework
FY23 Remuneration
Framework
Proposed
FY24 Remuneration
Framework
Fixed Remuneration
Base/Fixed Salary
Equity Rights 1
Base/Fixed Salary
Base/Fixed Salary
Short term at-risk
Remuneration
Long term at-risk
Remuneration
STI Commenced (Cash)
STI (Cash Deferral)
Performance Rights 1
Options – Group CEO 1
Performance Rights 1
Share Appreciation Rights
(SARS)
(1) Equity Rights, Performance Rights and Group CEO Options vesting is directly aligned to Iress’ 2025 Strategic timeline and will be tested based on the
defined hurdles/scheme rules.
Financial Performance in 2023
During 2023 Management undertook a significant
transformation program, which is progressing well against
the strategic undertakings announced to investors in April,
with progress on asset sales, the cost base, and the bringing
forward of initiatives which has led to improved earnings in
the second half of 2023. The shift towards clearer financial
reporting is underway, and a new capital management plan
sets out a path towards sustainable reinvestment in the
business and resuming dividends, which the company took
the prudent decision to pause as it focuses on deleveraging
the business.
Iress incurred a statutory net loss after tax for the 2023 year
of $137.5m (2022: $52.7m profit), substantially impacted by
a $130.4m write down in the carrying value of UK goodwill
(2022: Nil impairment recognised). Non‑operating items also
increased to $57.8m (2022: $22.4m non‑operating items),
largely related to transformation activities and technology
uplift projects which continued from the prior year.
The group’s preferred business performance measure,
Underlying EBITDA, was $128.3m for the year, a 12% decline
from last year.
The year has seen revenue growth of 2% across the business
(2023 operating revenue of $625.7m) with the earnings decline
impacted by higher inflationary costs, both employee and
supply side input costs. This trend was evident through the
year as we lowered our full year guidance expectations after
the half year result. A number of transformation‑led changes
were made at the time, including reducing headcount by
15% (excluding MFA, 21% including MFA), which has seen an
improved second half performance versus the first half and
come in at the upper end of the latest earnings guidance.
Executive KMP remuneration outcomes in 2023
As mentioned above, our Executive KMP group was
substantially changed, effective 1 July 2023. As part of
the move to a new business unit structure, new KMP roles
were identified in the new structure. Three new KMP roles
were identified representing responsibility for each of the
three business units. Two prior KMP remain as part of Iress’
leadership team, and five prior KMP have since departed Iress.
Fixed Remuneration in 2023
The new cash STI was introduced and replaced the Equity
Rights element of the previous framework to better align
individual rewards with both individual business and company
performance. The adoption of the new structure provided
the opportunity for a market based assessment of base
salaries to be undertaken. Rebasing of remuneration across
the newly appointed Executives was based on their roles and
responsibilities. No increase was awarded to the Group CEO
in 2023.
Short-term incentive in 2023
The new STI plan replaces the historical time‑based Equity
Rights element from the previous framework and seeks to
better align individual reward with performance. The Group
CEO had a target STI opportunity of 120% of fixed salary
(180% maximum) in 2023, with all other Executive KMP having
a 60% target opportunity (90% maximum). The opportunities
for newly hired/promoted Executive KMP were pro‑rated to
align with their start dates. The Group CEO achieved 47% of the
maximum STI, and the Executive KMP achieved an average of
43% of the maximum STI.
Long-term incentive in 2023
Performance Rights associated with the 2023 long term
incentive (LTI) were brought forward and granted in February
2022 to reflect the time horizon of the 2025 strategy. As a
result, the performance period was increased to four years,
with this tranche eligible to vest in February 2026 (instead
of the customary three years) and also incorporates an
additional one‑year holding lock. Executive KMP joining the new
management team during the 2023 financial year have been
awarded a pro‑rata allocation of this tranche as an interim
incentive solution while the overall remuneration platform was
being reset. These instruments operate under the same terms
as other participants.
The 2020 and 2021 grants of Performance Rights that were
due to vest in February 2023/2024 have experienced a
great deal of volatility in share price movements over their
performance periods. Although the share price has rebounded
off its lows, the absolute Total Shareholder Return (ATSR)
measure was not achieved for either instrument, resulting in
a 0% vesting for both tranches.
Engagement and feedback
Iress values the perspectives of our shareholders and
stakeholders and encourages an open dialogue. It has been
a pivotal year for Iress and we understand and acknowledge
the volatility in the company’s share price performance across
2023 and the impact it has had on remuneration outcomes
for our executives. This report serves as not only a reflection
of our 2023 performance but also as a foundation for future
alignment between remuneration and outcomes. We welcome
your questions and insights as Iress continues to refine its
remuneration practices and look forward to your continued
support at our AGM.
Julie Fahey
Chair of the People & Performance Committee
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 54
Remuneration Report (continued)
For the year ended 31 December 2023
Contents
Letter from Julie Fahey, Chair of the People and Performance Committee
Key Management Personnel (KMP)
Section 1 Executive remuneration framework in 2023
1.1
1.2
1.3
Overview of the 2023 executive remuneration framework
Our 2023 remuneration framework
Approach to determining remuneration opportunities
Section 2 Performance and remuneration outcomes in 2023
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.4
2.4.1
2.5
Mechanisms that link remuneration to performance
Group performance against objectives
Remuneration awarded in the current year
2023 Fixed remuneration
2023 STI outcomes
STI awarded for the year ended 31 December 2023
LTI Performance Rights, and remuneration realised from equity granted in previous years
Executive KMP statutory remuneration
Additional disclosures relating to termination arrangements for former Executive KMP (since exited) non‑statutory
Executive KMP actual realised remuneration – non‑statutory
Section 3 Remuneration governance
Overview
3.1
Executive KMP service agreements
3.2
Section 4 Non-executive director fees
Fee policy
4.1
Maximum aggregate NED fee pool
4.2
2023 Non‑Executive Director remuneration
4.3
Section 5 Additional required disclosures
Unvested equity
5.1
Shareholdings
5.2
Transactions with KMP
5.3
5.4
Loans to KMP or related parties
52
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56
56
57
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63
63
64
64
64
65
66
66
68
69
70
71
71
72
73
73
73
74
75
75
80
81
81
This remuneration report provides details of Iress’ remuneration policy and practice for Key Management Personnel (KMP) for the 2023
financial year (2023). The KMP are identified in the below table and comprise the Non‑Executive Directors (NEDs), Executive Director,
and Executives. For the purposes of this report: ‘Executive KMP’ refers to the Executive Director and Executives.
The information presented in this report has been audited as required under section 308(3C) of the Corporations Act 2001 and forms
part of the Director’s report.
55
Key Management Personnel (KMP)
For the year ended 31 December 2023, the KMP were:
KMP
Position
Term as KMP
Non-Executive Directors (NED)
R Sharp
N Beattie
M Dwyer
J Fahey
A Glenning
T Vonhoff
Non‑executive Chairman
Non‑executive Director
Non‑executive Director
Non‑executive Director
Non‑executive Director
Non‑executive Director
Full year
Full year
Full year
Full year
Full year
Full year
Executive Director
M Price
Executive
P Giles(1)
J Hoang(1)
H Mitchell(1)
C Williamson(2)
Former Executive
J Das(3)
P Ferguson(4)
K Fisk(5)
J Harris(6)
J McNeill(5)
S New(6)
A Todd(6)
Managing Director and Chief Executive Officer (CEO)
Full year
Chief Executive Officer – Superannuation
Chief Executive Officer – Trading & Market Data
Group Executive – Wealth & UK
Chief Financial Officer
Chief Product Officer
Chief Legal Officer & Company Secretary
Chief Corporate Affairs & Marketing Officer
Chief Financial Officer
Chief People Officer
Chief Commercial Officer
Chief Technology Officer
Partial year
Partial year
Partial year
Partial year
Partial year
Partial year
Partial year
Partial year
Partial year
Partial year
Partial year
(1) P Giles, J Hoang and H Mitchell were appointed as KMP on 1 July 2023 upon the introduction of the new product‑led structure.
(2) C Williamson was appointed as a KMP upon joining Iress as CFO on 24 July 2023.
(3) J Das ceased to be a KMP upon exiting the company on 31 March 2023.
(4) P Ferguson ceased to be KMP on 30 June 2023 upon the introduction of the new product‑led structure and remained a Leadership Team member until exiting
the company on 31 December 2023.
(5) K Fisk and J McNeill ceased to be KMP on 30 June 2023 upon the introduction of the new product‑led structure and remain as Leadership Team members.
(6) J Harris, S New and A Todd ceased to be KMP on 30 June 2023 upon the introduction of the new product‑led structure and remained as Leadership Team
members until their exit from the company.
The numbers reported reflect the period for which executives are KMP.
There have been no changes to KMP since the end of 2023 up to the date of signing the Directors’ Report.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 56
Remuneration Report (continued)
For the year ended 31 December 2023
Section 1 Executive remuneration framework in 2023
1.1 Overview of the 2023 executive remuneration framework
Iress’ 2023 executive remuneration framework is summarised below. The remuneration components apply to all Executive KMP, with
the exception of Options which only apply to the Group CEO.
Remuneration
principles and
performance
Our goal
To be the most innovative, reliable, and respected technology partner, regarded by our clients as essential and desirable.
Our goal is supported by our remuneration principles and performance framework
Alignment with
strategy
Long‑term deferred
awards with vesting
linked to key business
success measures.
Alignment with
shareholder
interests
Support attraction,
motivation, and
retention
Simple to
understand and
transparent
Support robust
performance
management
Significant exposure
to share price
through equity‑based
awards, with Absolute
Total Shareholder
Returns a gateway
to Performance
Rights vesting.
Market competitive
remuneration
opportunity. Long‑term
equity awards support
retention and allow
Executive KMPs to
share in the value
they create.
Total Remuneration
structured clearly
and easy to value
unvested equity.
Long‑term view of
performance to avoid
short‑term gains for
long‑term loss. Strong
performance and pay
linking mechanisms.
Annual performance
management
Remuneration
components
Robust performance management incorporating the ‘what’ and the ‘how’
Base Salary
Short Term Incentive
Long Term Incentive
Options (Group CEO only)
Market‑based reward for role.
Incentive plan to drive
performance and
motivate talent.
Equity to reward
exceptional shareholder
returns and achievement
of strategic goals.
On commencement in 2022,
a one‑off grant of options
to the Group CEO was
made to provide immediate
shareholder alignment and an
avenue to invest in Iress.
Minimum shareholding requirement
A 225% – 400% of base salary minimum shareholding requirement
(for the Executives and Group CEO respectively) to be met within five years
Performance
measurement
Individual performance
Any increases in base salary
will consider the market and
individual contribution and
experience.
Individual and Company
performance
Absolute total
shareholder return (ATSR)
Shareholder wealth
Any reward will align with
both individual and company
performance, with a heavy
weighting towards financial
outcomes.
An ATSR gateway over a
four‑year period (three
years remaining) applies
to the 2022 Grant 2
Performance Rights which
must be achieved before
the additional Earnings
Per Share (EPS), Return on
Invested Capital (ROIC) and
Platform Delivery conditions
are considered.
Over time, Executives should
see a direct increase (or
decrease) in their wealth in
the same way shareholders
do. Options for the Group
CEO will only be in the money
if a share price increase
is realised.
The Board also considered non‑financial factors centred around:
•
•
•
•
Platform – enabling our services on a platform architecture model.
Product – productising our offers and services.
Advocacy – growing advocacy from our people and clients.
Growth – delivering sustainable growth.
57
1.2 Our 2023 remuneration framework
The 2023 executive remuneration structure is as follows and comprises Base Salary, Superannuation, Short Term Incentive, Long Term
Incentive, Options, and Minimum Shareholding Requirement.
Base Salary
Base Salary reflects a market-related reward for performing a leadership role at Iress, plus superannuation and benefits.
Short Term Incentive (STI)
The STI is a new addition to the remuneration framework for 2023. It replaces the Historical Equity Rights element from the previous
framework and seeks to better align individual reward with both individual and company performance. It works via a multiplying structure,
where 125% maximum performance can be awarded for Company Measures, and 120% for Individual Measures (maximum award of 150% of
target opportunity). It is a wholly cash award for 2023, with a mandatory deferral element into equity to be introduced in 2024.
Example
Purpose
Opportunity
Performance
measurement
Termination of
employment
Change of control
Malus & clawback
In the case where an Executive KMP’s fixed salary is $500,000, target STI would be 60% of this ($300,000)
and maximum opportunity would be 90% of fixed salary ($450,000). Whilst not an expected outcome, given the
multiplying structure of the plan, if either the combined Company Measures or the combined Individual Measures
were to add to 0%, then $0 benefit would result for a plan participant for that year (e.g. 125% for Company Measures
x 0% for Individual Measures = 0% Outcome).
To align the interests of Executive KMP with the company’s short‑term goals and performance targets, with a
particularly high weighting directed toward financial metrics.
Executive KMP
Target/Maximum Opportunity
Group CEO
Executives
120%/180% of Fixed Salary (base salary plus superannuation)
60%/90% of Base Salary
Any award is delivered wholly in cash in April 2024 for the 2023 plan, subject to continued service.
Board discretion:
The Board retains ultimate discretion to adjust any award, subject to their assessment of individual and
company performance.
Under the multiplying structure (where maximum award is equal to 150% of target opportunity) 125% maximum
performance can be awarded for Company Measures that are highly weighted towards financial objectives. The
maximum 120% dedicated to Individual Measures are made up of predominantly financial and strategic objectives
that are under the participant’s direct control.
There are three Company Objectives that align the Group CEO and Executives with shareholder and client outcomes:
1. Shareholder (Group EBITDA less capital expenditure)
2. Strategy & Transformation Execution (Exit earnings run rate)
3. Customer (Net Promoter Score)
The Group CEO and Executive KMP’s individual objectives are, as appropriate to each individual, aligned to Group
or Business Unit financial objectives, revenue achievement, the execution of transformation initiatives, the definition
of long term strategic plans (to 2027), the strategic management of the cost base, and the repatriation of capital.
Refer to Section 2.3.2 for more detailed information on performance against each measure for the Group CEO, as
well as a summary of Executive KMP performance.
If employment ceases due to resignation, termination for cause, or gross misconduct, then any award lapses.
If employment ceases for other reasons, the Board may grant a pro‑rated award at their absolute discretion.
Board discretion also applies to a change in control. The Board will consider time elapsed and performance
achieved when exercising this discretion.
Significant underperformance or misconduct can lead to reduced awards and the ability to clawback awards at the
Board’s discretion.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report
58
Remuneration Report (continued)
For the year ended 31 December 2023
59
Long Term Incentive (Performance Rights)
The 2022 Performance Rights grant combined two grants – one for 2022 and one for 2023. No additional Performance Rights were granted in
2023 to participants who received the brought forward 2023 grant, only as a pro‑rata award to newly hired/promoted executives. Grant 2 of the
2022 award is reported below as the proxy for the 2023 grant.
The long term incentive is underpinned by Performance Rights, which is a right to receive one Iress share (or at the Board’s discretion, cash of
equivalent value) upon vesting and exercise of that right at no cost. Performance Rights do not carry any dividend entitlements or voting rights.
Shares allocated upon exercise carry the same rights as any other Iress share.
Purpose
Opportunity
To reward exceptional shareholders returns and performance against key business strategy objectives.
Executive KMP
Performance Rights Award Value
Group CEO
Executives
2022 Grant 2: face value $4,062,016
2022 Grant 2: face value 38.5% of Total Remuneration
The number of Performance Rights granted to each executive was calculated using Award Value, divided by the
twenty‑trading‑day Volume Weighted Average Price (VWAP) commencing on the day following the results being
announced for the year ending 31 December 2021.
Two grants of Performance Rights were made to Executive KMPs in 2022, one being a four‑year instrument brought
forward that effectively replaced the 2023 grant.
A grant of Performance Rights will vest subject to: an ATSR gateway; ongoing service; and three additional measures
over the performance measurement periods. The ATSR calculation uses a start and end share price based on
the 20‑day VWAP commencing on the Trading Day after Iress’ financial results are announced. The starting Share
price is the 20‑day VWAP commencing on the Trading Day after Iress’ financial results were announced for 2021,
and the final Share price is based on the 20‑day VWAP commencing on the Trading Day after Iress’ 2025 results
are announced.
• 2022 – Grant 2 has a four‑year performance measurement period from 2022 to 2026.
• ATSR is aligned to Iress’ business objectives as ATSR focuses on the growth of Iress and value to shareholders,
regardless of the broader market and other companies’ movements. Awards to Executive KMPs will not vest unless
substantial shareholder value has been created over the performance measurement period.
• The annualised ATSR gateway of 10% —set at the 2021 maximum hurdle—must be met. Vesting is then dependent
on performance against three equally weighted key business strategy objectives: EPS growth, ROIC improvement,
and platform delivery.
• The 20‑day ATSR VWAP start and end periods, allows for market consideration and response to the EPS, ROIC
and platform delivery results achieved at the end of the performance periods.
• The platform delivery measure is the fundamental measure underpinning the strategy acceleration, with scale
and financial outcomes, which are critical to providing returns to our shareholders.
Board discretion:
The Board retains ultimate discretion to adjust the award, or vesting quantum, of Performance Rights, subject
to their assessment of individual and company performance. In applying any discretion, the Board takes into
consideration performance against a set of non‑financial measures across the following areas:
• Platform – enabling our services on a platform architecture model.
• Product – productising our offers and services.
• Advocacy – growing advocacy from our people and clients.
• Growth – delivering sustainable growth.
Performance
measurement
2022 Grant 2 is eligible to vest in March 2026. A one‑year holding lock applies to all Performance Rights
post‑vesting.
Measure 1: EPS condition (one-third of grant)
EPS is calculated as Net Profit After Tax (NPAT), divided by the weighted average number of Iress shares on issue
in the final year of the relevant measurement period. Iress’ EPS performance will be tested at the relevant financial
year end, based on Iress’ audited consolidated results. The EPS performance will be determined by the Board.
EPS vesting schedule
Threshold vesting
(30% vesting of the tranche)
2022 Grant 2*
EPS of 51.9 cents
Maximum vesting
EPS of 66.8 cents
* Straight‑line vesting will occur between threshold and maximum. No vesting of the measure will apply for below threshold
performance.
Measure 2: ROIC condition (one-third of grant)
ROIC is calculated using NPAT (excluding interest and finance costs) as a percentage of the net debt plus
equity. Iress’ ROIC will be measured based on Iress’ audited consolidated results for the final year of the relevant
measurement period. ROIC performance will be determined by the Board.
ROIC vesting schedule
Threshold vesting
(30% vesting of the measure)
Maximum vesting
(100% vesting of the measure)
2022 Grant 2*
ROIC of 13.3%
ROIC of 17.8%
* Straight‑line vesting will occur between threshold and maximum. No vesting of the measure will apply for below threshold
performance.
Measure 3: Platform delivery condition (one-third of grant)
The technology platform delivery condition focuses on enabling services on Iress’ new single product and
technology platform. Platform Delivery performance will be measured at the end of the measurement period, with
performance determined by the Board.
Platform vesting
schedule
2022 Grant 2*
Threshold vesting (50%
vesting of the measure)
30%–50% of existing
services are enabled
on the platform
Between threshold and
maximum vesting (75%
vesting of the measure)
30%–50% of existing
services and every new
service is enabled on
the platform
Maximum vesting (100%
vesting of the measure)
Majority (>=50%) of existing
services and every new
service is enabled on
the platform
* The vesting schedule is binary, with no straight‑line vesting occurring between each performance outcome. No vesting of the
measure will apply for below threshold performance.
No retesting applies to Performance Right awards
Vesting
Termination of
employment
Change of control
Malus & clawback
If employment ceases due to resignation, termination for cause, or gross misconduct, unvested Performance Rights
lapse. If employment ceases for other reasons, Performance Rights continue to be held subject to original terms on
a pro‑rata basis (subject to Board discretion).
If employment ceases due to resignation, termination for cause, or gross misconduct, then any award lapses.
If employment ceases for other reasons, the Board may grant a pro‑rated award at their absolute discretion.
Board discretion also applies to a change in control. The Board will consider time elapsed and performance achieved
when exercising this discretion.
Significant underperformance or misconduct can lead to reduced awards and the ability to clawback awards at the
Board’s discretion.
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Remuneration Report (continued)
For the year ended 31 December 2023
61
Options (one-off award granted to the Group CEO to offset fixed pay reduction on commencement)
An Option is a right to buy one Iress share upon vesting and exercise of that right at a set exercise price, subject to adjustment for certain
capital actions. Options do not carry any dividend entitlements or voting rights. Shares allocated upon exercise carry the same rights as any
other Iress share. There were no Options awarded in 2023. The options granted to the Group CEO in 2022 have an exercise price of $13.00.
Purpose
Opportunity
To align interests with shareholders and reward shareholders returns.
Executive KMPs
Award Value
Group CEO
2022 Grant 1: grant value $686,235
2022 Grant 2: grant value $686,235
Executives
N/A
The Award Value was equal to the 30% reduction in fixed remuneration comprising Base Salary and Historical
Equity Rights agreed to by the Group CEO (compared to the fixed remuneration for the former Group CEO) for
the period from his commencement date to 31 December 2022. The reduction in fixed remuneration reflects
the Group CEO’s intention to invest in Iress.
The number of Options granted was calculated using the Award Value, divided by the independent Black Scholes
valuation of an Option for each grant using the twenty‑trading‑day VWAP up to and including the grant date.
The exercise price of the Options was set to reflect the effective strike price for Performance Rights if performance
hurdles were to be achieved. The vesting of Options is not subject to any further performance conditions.
The vesting period ends on the dates the Company announces its annual financial results to the ASX, which is
estimated to be 20 February 2026 for Grant 1 and 22 February 2027 for Grant 2.
Once vested, Options can be exercised at any time during the two‑year exercise period apart from any ‘blackout
periods’ that apply under the Company’s Share Trading Policy. The exercise period is estimated to end on
28 February 2028 for Grant 1 and 28 February 2029 for Grant 2.
Performance
measurement
Vesting and
exercise period
Subject to applicable law, in the event of cessation of employment for any reason:
• after the end date of the vesting period for Grant 1, all Options will remain on issue and there will be no acceleration
Termination of
employment
Change of control
of any remaining vesting period nor change to any exercise period unless the Board determines otherwise; and
• before the end date of the vesting period for Grant 1, a pro rata portion of all of the Options will lapse reflecting the
portion of that vesting period Marcus Price has not served and there will be no acceleration of any vesting period nor
change to any exercise period unless the Board determines otherwise.
This position differs to the position for cessation of employment under the 2022 Performance Rights (discussed
above). This is because the grant of Options is provided in return for a 30% reduction in fixed remuneration.
If employment ceases due to resignation, termination for cause, or gross misconduct, then any award lapses.
If employment ceases for other reasons, the Board may grant a pro‑rated award at their absolute discretion.
Board discretion also applies to a change in control. The Board will consider time elapsed and performance achieved
if/when exercising this discretion as to whether any remaining unexercised Options will vest and be automatically
exercised. This position differs to the position for a Change of Control under 2022 Performance Rights (discussed
in the section above). This is because the grant of Options was intended to accommodate the 30% reduction in
fixed remuneration.
Malus & clawback
Significant underperformance or misconduct can lead to reduced awards and the ability to clawback awards at the
Board’s discretion.
Minimum shareholding requirement
• Executive KMP have a Minimum Shareholding Requirement to be met by December 2023, or within five years of commencing in their
executive role. The requirement for the Group CEO and Executives is as follows:
> Group CEO: 400% of base salary.
> Executives: 225% of base salary.
• Unvested Historical Equity Rights, vested Performance Rights and vested Options that are ‘in the money’ will count towards meeting
the requirement. Unvested Performance Rights will not.
• The value of each holding will be calculated as the maximum of:
> share price at the time of the measurement, or
> share price at the time when equity is acquired (i.e., when Historical Equity Rights were granted, when Performance Rights vest,
and/or when fully‑paid shares are purchased).
• Executive KMP progress towards the Minimum Shareholding Requirement is shown in Section 5.2.
Under the framework, remuneration for 2023 is delivered over a remaining four‑year timeframe for Executives, and up to five remaining
years for the Group CEO, as shown below:
2023
2024
2025
2026
2027
2028
Base salary
Cash
Short Term
Incentive
Cash
Equity Rights
Remaining Equity
Rights vesting period
Holding lock period
Release of 2022 Equity Rights and Performance
Rights and Group CEO Options vesting is directly
aligned to Iress’ 2025 strategic timeline
Performance Rights
Options (Group CEO)
Minimum
Shareholding
Requirement
Grant 1: Remaining Measurement Period
Holding lock period
Grant 2: Remaining Measurement Period
Holding
lock period
Grant 1: Remaining Options Vesting Period
Exercise period to February 2028
Grant 2: Remaining Options Vesting Period
Exercise period to Feb. 2029
Minimum Shareholding Requirement to be met within five years (ongoing requirement)
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Remuneration Report (continued)
For the year ended 31 December 2023
1.3 Approach to determining remuneration opportunities
For Executives, each remuneration component (Base Salary, Superannuation, STI and LTI) is calculated as a proportion of Total
Remuneration, as per the remuneration opportunities shown in Section 1.2. The LTI refers to the 2022 Grant 2 Performance Rights
allocation that was brought forward from 2023.
For the Group CEO, 2023 remuneration was set using:
• Base Salary of $685,236
• Superannuation of $27,500
• STI based on a maximum of 180% of Fixed Salary (Base Salary plus Superannuation)
• LTI based a face value $4,062,016 (the full value of the former Group CEO’s 2022 Grant 2 LTI Performance Rights)
In determining Total Remuneration, Iress considers the skills, experience, performance, and value to Iress of the individual and market
pay levels of comparable roles. Total Remuneration is reviewed annually and approved by the Board for the Group CEO and by the
PPC for other Executive KMP. Any decision to increase Total Remuneration is considered in the context of the resulting change to
Base Salary, STI, and LTI.
Iress serves multiple sophisticated client segments internationally, faces a range of competitors, and is exposed to global technology
and regulatory influences. As a result, Iress competes for the best people globally.
The challenges and opportunities faced by Iress reflect the international nature of its business, its size, and the industries in which it
operates. Recognising this, Iress generally considers two main comparator groups when assessing executive remuneration: ASX‑listed
technology companies with complex multinational operations of a similar size (assessed by market capitalisation); and, periodically,
overseas‑listed technology companies operating in a closely comparable industry segment with comparable scale.
The Board routinely assesses the remuneration approach against the market of such peers, and this was an important input to the
changes made to executive remuneration in 2023.
The 2023 remuneration outcomes for each member of the Executive KMP are shown in Section 2.4.
63
Section 2 Performance and remuneration outcomes in 2023
2.1 Mechanisms that link remuneration to performance
Pay for Performance
Our remuneration approach is supported by the following mechanisms that link reward outcomes
to key measures of business performance and success.
Group and individual performance impacts Executive KMP remuneration in four ways:
Impact 1
Impact 2
Impact 3
Impact 4
Non-financial performance
STI award subject to achieving
testing individual and company
performance targets.
LTI vesting subject to ATSR
gateway and additional
measures
Ultimate discretion from the
Board to adjust remuneration in
light of poor performance
•
Individual and Group performance
against the annual non‑financial
objectives set by the Board is a
key consideration when the Board
determines the Base Salary and
Total Remuneration package of
an executive.
• STI awards align with short
• LTI vesting is subject to a
• The Board has discretion to
term individual and company
performance, with a heavy
weighting towards financial
outcomes.
four year (three years remaining)
ATSR gateway measure that
aligns reward with shareholder
outcomes.
• The significant proportion of
Total Remuneration delivered
via LTI then only vests subject
to performance against key
business strategy objectives.
• This instrument will be replaced
with SARS from 2024.
reduce, cancel or clawback at‑risk
remuneration if Group or individual
performance is significantly
below expectations, or in the
event of individual misconduct.
The discretion can be applied at
grant, vesting, during the equity
restriction period. Or after an
award has been made.
•
In the case of LTI, remuneration
can be adjusted prior to grant,
during vesting, and after vesting
as a result of performance.
Board discretion
The Board has an overarching responsibility to ensure performance is appropriately managed, to maintain a focus on strong
performance, and the long‑term link of performance‑to‑remuneration outcomes.
Each year, the Board approves the Group financial and non‑financial objectives consistent with the Group’s risk appetite and specific
targets for the Group to achieve its strategy. The Group’s financial and non‑financial objectives cascade down to individual objectives
for each executive that are specific to each executive’s role.
At all points throughout the remuneration and performance cycles for both STI and LTI, the Board and PPC review performance at
a Group and individual level and retain discretion to reduce the value of awards in line with performance to maintain the alignment
between performance and remuneration.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 64
Remuneration Report (continued)
For the year ended 31 December 2023
2.2 Group performance against objectives
The table below provides summary information on the Group’s performance for the five years to 31 December 2023:
Measure
Revenue from contracts with customers ($’000)
Net Profit (loss) After Tax ($’000)
Basic Earning per Share (cents)
Reported Return On Invested Capital(1)
Annual ATSR(2)
Annualised 3‑year ATSR(2)
2023
625,743
(137,484)
(76.4)
(19.24%)
(16.61%)
(5.70%)
2022
615,589
52,672
28.6
8.20%
(21.10%)
(6.00%)
2021
595.945
73,798
38.8
10.50%
26.50%
8.90%
2020
542,630
59,213
32.4
9.20%
(18.00%)
1.30%
2019
508,943
65,128
37.9
11.40%
23.50%
9.30%
(1) Earnings after tax adjusted for net interest / (net debt and equity).
(2) All share prices and the TSR calculation are based on the twenty‑trading‑day volume weighted average share price on the relevant dates.
2.3 Remuneration awarded in the current year
2023 financial performance was reflected in 2023 remuneration outcomes. STI payments were below target and the value of executive
equity holdings have decreased in line with shareholder experience. For the 2020 Performance Rights, the Absolute Total Shareholder
Return (ATSR) failed to meet the minimum performance requirement for vesting. Given the negative ATSR performance through to
31 December 2023, there also will be no vesting for the 2021 Performance Rights. Executives holding Historical Equity Rights were
also impacted by the share price which includes the 2020 and 2021 tranches which were under a holding lock during 2023.
The Board viewed that overall financial performance was fairly reflected in the decreased award of at‑risk remuneration.
2.3.1 – 2023 Fixed remuneration
The current policy for reviewing Executive remuneration this year focused on ASX‑listed technology companies with complex
multinational operations of a similar size (assessed by market capitalisation). External surveying specialists (Aon Human Capital,
Godfrey Remuneration Group and SW Corporate) were engaged to source listed company remuneration data.
With the adoption of the new product‑led structure, a market based assessment of base salaries for Executive KMP was undertaken,
and the salaries for existing Iress employees who became KMP (P Giles and J Hoang), and incoming KMP (H Mitchell) were determined
according to the role and its responsibilities. No increase was awarded to the Group CEO in 2023.
65
2.3.2 – 2023 STI outcomes
The first of the tables below outlines detailed STI outcomes for the Group CEO. The tables outline Company Measures (maximum 125%)
and Individual Measures (maximum 120%) that multiply to form the Group CEO’s STI for 2023 (maximum 150% of target opportunity).
In assessing the overall STI outcome, the Board took into consideration performance against these measures.
Measure
Weighting
(at Target)
Performance Outcome
Weighted
Outcome
Commentary
Company Measures (up to 125%)
Shareholder
(Group EBITDA
less Capex –
Group Underlying
Earnings Before
Interest, Tax and
Amortisations
less capital
expenditure)
Strategy &
Transformation
Execution
(Exit earnings
run rate)
40%
40%
Customer
(Group Net
Promoter Score)
20%
Threshold
Target
Stretch
Threshold
Target
Stretch
Threshold
Target
Stretch
Individual Measures (up to 120%) – M Price
Group Revenue
Strategic Cost
Initiatives
Corporate
Restructure
Capital
Repatriation
Program
30%
30%
20%
20%
Threshold
Target
Stretch
Threshold
Target
Stretch
Threshold
Target
Stretch
Threshold
Target
Stretch
This metric aligns performance to shareholder
interests.
0%
The 2023 Group EBITDA less Capex was below the
2022 Group EBITDA less Capex and on that basis
there is no Executive reward for this metric.
2022 Group EBITDA less capex $118.8m
2023 Group EBITDA less capex $108.9m
This metric aligns performance to market
announced strategic priorities, specifically the
recurring financial value of transformation initiatives.
Progress on the delivery of strategy execution:
50%
• Capturing revenue through enhanced and new
products, pricing standardisation
• Managing non‑strategic assets for value
• Arresting growth in the cost base
• Operating model efficiency
This metric aligns performance with customer
outcomes.
Customer sentiment improved with a demonstrable
NPS improvement. Improvements particularly across
ANZ Wealth, UK Wealth, UK Sourcing, Trading Asia.
Revenue initiatives have resulted in a modest
2% growth in revenue from 2023.
Strategic cost initiatives allowed Iress’ growth
in the cost base to be arrested in an inflationary
environment. Initiatives have resulted in a more
efficient cost base.
To support its growth objectives, Iress restructured
into a product‑led Business Unit structure, delivering
accountability and focus on core businesses. All
Iress people moved into the new structure, a new
remuneration model was developed, and financial
accounts were restated to support the new
structure.
The divestment of non‑strategic assets, and the
management of the portfolio for value is a strategic
priority. During 2023 the sale of the MFA business
was completed.
25%
21%
34%
20%
20%
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 66
Remuneration Report (continued)
For the year ended 31 December 2023
2.3.3 – STI awarded for the year ended 31 December 2023
The Group CEO and Executive KMP’s individual objectives are, as appropriate to each individual, aligned to Group or Business Unit
financial objectives, revenue achievement, the execution of transformation initiatives, the definition of long term strategic plans
(to 2027), the strategic management of the cost base, and the repatriation of capital.
Details of the STI payments awarded to each Executive KMP for the year ended 31 December 2023 are set out below:
Short-term incentive for the year ended 31 December 2023
Executive KMP
M Price
P Giles(2)
J Hoang(2)
H Mitchell(2)
C Williamson(3)
Cash STI
$000(1)
$605,144
$124,329
$154,772
$165,034
$147,450
% earned of
maximum
opportunity
% forfeited
of maximum
opportunity
47%
40%
44%
38%
50%
53%
60%
56%
62%
50%
(1) Under the terms of the 2023 STI, 100% of their award is delivered in cash which is generally paid around April 2024.
(2) Amounts shown for P Giles, J Hoang and H Mitchell are pro‑rated to account for base salary changes during the performance period.
(3) C Williamson became a KMP upon joining as CFO on 24 July 2023. Amounts shown are pro‑rated from this date.
2.3.4 – LTI Performance Rights, and remuneration realised from equity granted in previous years
LTI Performance Rights granted in 2020
Of the current Executive KMP, only J Hoang participated in this grant (prior to becoming a KMP). For the LTI Performance Rights granted
in 2020 and tested on 31 December 2022, vesting was based on ATSR performance over the measurement period: 0% of the rights
vest for compound annual growth ATSR performance below 6.5%, 50% vest at 6.5% and 100% of the rights vest at 10% with pro‑rata
vesting on a straight‑line basis in between. Based on Iress’ compound annual growth ATSR performance, there was zero vesting of LTI
Performance Rights over this period.
LTI Performance Rights granted in 2021
The same vesting schedule as 2020 applied to this grant. In February 2024, based on Iress’ compound annual growth ATSR
performance in the preceding three‑year period up to 31 December 2023, there will be zero vesting of LTI Performance Rights granted
to executives in 2021. This will be reported on in next year’s report.
Historical Equity Rights granted in 2021
Of the current Executive KMP, only J Hoang participated in this grant (prior to becoming a KMP). Historical Equity Rights granted in 2021
were eligible to vest in February 2023 subject to continued service. Performance is reflected in share price movements and dividends
earned, which collectively impact the value of Historical Equity Rights. Following the 2022 year‑end assessment of performance, the
Board determined it was fair and appropriate, under the terms of the award, that the 2021 Historical Equity Rights vest. These Historical
Equity Rights are under restriction until February 2025 (or August 2025 if the relevant executive elected for the voluntary holding lock
to also apply).
Historical Equity Rights granted in 2022
Of the current Executive KMP, only M Price received a grant of 2022 Equity Rights. Historical Equity Rights granted in 2022 are eligible
to vest in February 2024 subject to continued service. Performance is reflected in share price movements and dividends earned,
which collectively impact the value of Historical Equity Rights. Following the 2023 year‑end assessment of performance, the Board will
determine if it is fair and appropriate, under the terms of the award, that the 2022 Historical Equity Rights vest. Any Historical Equity
Rights that vest will be under restriction until February 2026 (or August 2026 if the relevant executive elected for the voluntary holding
lock to also apply). This will be reported on in next year’s report.
67
In the table, Historical Equity Rights and Additional Equity Rights (Rights awarded to reflect dividend equivalents), as well as
LTI Performance Rights are shown at face value (reflecting share price at grant multiplied by the number of instruments granted).
This differs from the portion of the grant date fair value expensed in 2023, which has been used to calculate remuneration in
Section 2.4 Executive KMP statutory remuneration. Options are shown at fair value (reflecting fair value on grant date multiplied
by the number of instruments granted).
The equity‑related remuneration awarded to Executive KMP in 2023 (and 2022) is shown below.
Executive KMP
M Price
P Giles(4)
J Hoang(4)(5)
H Mitchell(4)
C Williamson(6)
Total Executive KMP
Former Executive KMP
A Walsh
J Das(8)(7)
P Ferguson(8)
K Fisk(8)
J Harris(8)(9)
J McNeill(8)(12)
S New(8)(10)(12)
A Todd(8)(11)
Total former Executive KMP
Total
Historical
Equity
rights
$
–
175,750
–
–
–
–
–
175,750
1,008,892
–
275,001
–
195,005
–
175,002
–
310,012
–
213,283
–
306,019
–
315,006
–
2,798,220
–
2,973,970
Additional
Equity
rights(1)
$
–
–
–
–
–
–
–
–
76,389
26,457
–
18,762
14,770
–
–
29,828
23,480
19,714
16,562
28,283
23,755
30,310
23,854
153,354
178,810
153,354
178,810
Performance
rights(2)
Options(3)
$
$
–
8,124,042
606,264
732,731
1,090,429
1,168,668
3,598,092
8,124,042
8,124,042
–
2,812,302
–
1,994,180
–
1,789,650
–
3,170,229
–
2,181,111
–
3,129,414
–
3,221,362
–
26,422,290
3,598,092
34,546,332
–
1,372,470
–
–
–
–
–
1,372,470
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,372,470
Total Value
of Equity
Granted
$
–
9,672,262
606,264
732,731
1,090,429
1,168,668
3,598,092
9,672,262
9,209,323
26,457
3,087,303
18,762
2,203,955
–
1,964,652
29,828
3,503,721
19,714
2,410,956
28,283
3,459,188
30,310
3,560,222
153,354
29,399,320
3,751,446
39,071,582
Year
2023
2022
2023
2023
2023
2023
2023
2022
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(7)
(8)
Amount reflects the dividend equivalents granted in 2023 and 2022 upon vesting of the 2021 and 2020 Equity Rights respectively.
The number of rights granted to each Executive KMP in 2023 and 2022 was based on the twenty‑trading‑day volume weighted average share price up to
and including 31 December 2023 and 31 December 2022 respectively.
Values estimate the maximum value available to vest in future years.
The minimum value is zero as no rights vest if the vesting conditions are not satisfied.
The number of granted Options were based on the fair value of an Option on the grant date for each grant using the twenty‑trading‑day volume weighted
average share price up to and including the grant date 3 October 2022.
Values estimate the maximum value available to vest in future years.
The minimum value is zero as no options vest if the vesting conditions are not satisfied.
Participants were appointed as KMPs on 1 July 2023. No additional Performance Rights were granted in 2023 to participants who received this brought
forward grant, only as a pro‑rata award to newly hired/promoted executives. The amounts reflect the part of the year as KMP.
J Hoang’s salary was fully denominated in Singaporean Dollars and was subject to exchange rate movements.
The Australian dollar amounts in the table were converted at an average foreign exchange rate of 0.8938.
C Williamson was appointed as KMP on 24 July 2023. The amounts reflect the part of the year as KMP.
J Das ceased to be KMP on 31 March 2023. The amounts reflect the part of the year as KMP.
Participants ceased to be KMPs on 30 June 2023. The amounts reflect the part of the year as KMP.
On the termination of employment on 30 September 2023, J Das retained all of the Equity Rights and the 2022 and 2021 Performance Rights pro‑rata.
P Ferguson Equity Rights and Performance Rights fully vested on 2 June 2023. The accelerated vesting of the equity Rights and Performance Rights
were approved by the Board.
On the termination of employment on 30 September 2023, J Harris retained all of the Equity Rights and the 2022 and 2021 Performance Rights pro‑rata.
(9)
(10) On the termination of employment on 6 October 2023, S New retained all of the Equity Rights and the 2022 and 2021 Performance Rights pro‑rata.
(11) On the termination of employment on 31 December 2023, A Todd retained all of the Equity Rights and the 2022 and 2021 Performance Rights pro‑rata.
(12) J McNeill and S New salaries were fully denominated in British Pounds and were subject to exchange rate movements.
The Australian dollar amounts in the table were converted at an average foreign exchange rate of 0.5344 (2022: 0.5546).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report
68
Remuneration Report (continued)
For the year ended 31 December 2023
2.4 Executive KMP statutory remuneration
Short-term benefits
Post-
employ-
ment
benefits
Long-term
benefits
Executive
KMP
Year
Salary
and
Fees(1)
$
Other
benefits(2)
$
Short-
term
incentive
$
Super-
annuation
$
Share-
based
pay-
ments(3)
$
Long-
service
leave
(LSL)(4)
$
Com-
passion-
ate
payment
$
Term-
ination
payment
$
Total
Remun-
eration
$
2023
2022
2023
2023
2023
705,140
168,962
235,429
226,031
347,548
–
–
–
68,465
58,985
605,144
–
124,329
154,772
165,034
27,500
6,781
27,500
15,515
27,500
27,500
691,892
470,889
54,525
104,258
8,922
4,425
1,906
–
968
–
–
–
C Williamson(8) 2023
344,715
–
147,450
2023 1,858,863
127,450 1,196,729
125,515
864,022
2,874
–
–
–
–
–
–
– 2,031,582
646,632
442,751
569,041
607,989
–
–
–
–
–
524,090
4,175,453
Executive KMP
M Price
P Giles(6)
J Hoang(6)(7)
H Mitchell(6)
Total
Executive
KMP
69
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Salary and fees includes allowances and short‑term compensated absences paid during the 2023 and 2022 years.
Other benefits include health, life insurance, school fees, home passage and housing subsidies.
Share‑based payments include share based payment expenses in relation to historical equity rights, deferred share rights, transitional equity rights,
performance rights and options rights.
The negative movements in Long Service Leave (“LSL”) reflect the utilisation of the long service leave which off‑sets the amounts paid and included salaries.
Percentage calculated as the sum of short‑term incentives and equity shares over the total remunerations.
Participants were appointed as KMPs on 1 July 2023. The amounts reflect the part of the year as KMP.
J Hoang’s salary was fully denominated in Singaporean Dollars and was subject to exchange rate movements.
The Australian dollar amounts in the table were converted at an average foreign exchange rate of 0.8938.
C Williamson was appointed as KMPs on 24 July 2023. The amounts reflect the part of the year as KMP.
On the cessation of A Walsh as KMP on 3 October 2022, in relations to the retained Equity Rights and Performance rights, the share‑based payment
expenses still to be recognised from the cessation date to the vesting date were accelerated and recognised in full on cessation.
The prior year share‑based payment expenses were restated by $673,855. Salaries and fees were restated to include termination payments.
(10) J Das ceased to be KMP on 31 March 2023.
The amounts reflect the part of the year as KMP.
(11) Participants ceased to be KMPs on 30 June 2023. The amounts reflect the part of the year as KMP.
(12) P Ferguson Equity Rights and Performance Rights fully vested on 2 June 2023.The accelerated vesting of the Equity Rights and Performance Rights and
removal of performance conditions were approved by the Board.
(13) J McNeill and S New salaries were fully denominated in British Pounds and were subject to exchange rate movements.
The Australian dollar amounts in the table were converted at an average foreign exchange rate of 0.5344 (2022: 0.5546).
(14) J McNeill and S New share‑based payments include the payment of cash dividend replacement for their vested but unexercised 2020 Equity Rights.
At-risk
pay to
total
remun-
eration(5)
%
63.84%
72.82%
40.40%
45.52%
28.61%
28.98%
49.35%
2022
168,962
Former Executive KMP
A Walsh(9)
J Das(10)
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
P Ferguson(11)
(12)
K Fisk(11)
J Harris(11)
J McNeill(11)
(13)(14)
S New(11)(13)(14)
A Todd(11)
Total former
Executive
KMP
808,656
155,001
550,000
200,012
390,000
178,307
354,019
338,307
620,000
240,021
414,698
332,504
595,002
317,611
630,000
–
–
–
–
1,290
2,580
1,140
2,280
1,290
2,580
3,677
12,904
2,480
4,690
–
–
2023 1,761,763
9,877
2022 4,362,375
25,034
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,781
470,889
–
646,632
72.82%
Cash dividend replacement is only applicable to KMPs in the United Kingdom.
26,250 1,850,673
366,051
401,385
–
27,500
(37,829)
(281)
3,740
–
442,273
2,647,750
963,044
982,625
7,025 1,969,841
337,313
105,901
171,634
217,139
534,230
28,475
9,125
32,050
–
27,500
19,367
37,323
15,438
29,750
–
166,145
382,722
237,351
545,261
220,641
27,500
546,106
(5,200)
(3,882)
1,900
4,539
(4,423)
16,617
–
–
–
–
3,076
8,239
471,500
–
–
–
–
–
–
518,430 3,162,898
754,486
296,373
564,522
752,313
1,200,927
200,000
–
–
–
429,210
847,647
587,773
1,174,703
541,328
1,211,845
69.90%
38.01%
40.85%
62.28%
44.71%
35.73%
30.40%
28.86%
44.48%
38.71%
45.15%
40.38%
46.42%
40.76%
45.06%
2.4.1 Additional disclosures relating to termination arrangements for former Executive KMP (since exited) – non-statutory
Following the organisational restructure coming into effect on 1 July 2023, J Harris, S New and A Todd left the business. J Das left
at the time of the announcement of the restructure in April 2023, and P Ferguson left at the completion of the financial year in
December 2023. Whilst no longer considered KMP after the restructure, the following section, although a non‑statutory element,
contains information about their termination arrangements for additional transparency. All payments were in line with individual
contractual terms; pro‑rated where applicable, and in line with good leaver treatment under Iress’ standard plan terms.
Former Executive KMP
J Harris
S New
A Todd
Total
Total termination
payments
$
984,911
701,089
823,571
2,509,571
50,955 3,283,069
(4,928)
471,500 1,160,703 6,732,939
48.76%
236,348 4,769,324
(8,576)
–
– 9,384,505
50.82%
Total
2023 3,620,626
137,327 1,196,996
176,470 4,147,091
(2,054)
471,500 1,160,703 10,908,392
48.99%
2022 4,531,337
25,034
–
243,129 5,240,213
(8,576)
–
– 10,031,137
52.24%
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report
70
Remuneration Report (continued)
For the year ended 31 December 2023
71
2.5 Executive KMP actual realised remuneration – non-statutory
The differences between the statutory remuneration table in Section 2.4 and the realised remuneration table under this section, is that
STI is excluded (as it will not be paid until April 2024, and the plan was only introduced in 2023) and share based payments have been
excluded due to being realised on a vested basis, with no monetary amounts therefore included.
The value of equity vested to Executive KMP in 2023 (and 2022) is shown below. In addition to the 2019 LTI Performance Rights for the
former Group CEO and 2020 LTI Performance Rights for the former Group CEO and other executives, the 2023 realised remuneration
includes Deferred Share Rights granted in 2020 under the previous remuneration framework.
Total actual realised remuneration decreased in 2023, which was primarily driven by the reduced number of Executive KMP and there
being no Transitional Equity Rights vesting in 2023. Transitional Equity Rights were a one‑off grant of Additional Equity Rights in 2019
to recognise the cash flow impact of the changes to the executive remuneration framework in that year.
Section 3 Remuneration governance
3.1 Overview
The People & Performance Committee (PPC) works closely with the Board to apply the Group’s remuneration philosophy and ensure the
Company’s remuneration strategy supports the creation of sustainable shareholder value. One of the main roles of the PPC is to assist
and advise the Board to fulfil its responsibilities on remuneration matters. The PPC takes into account a wide variety of information
including business strategy and culture, stakeholder interests, market practice, and corporate governance principles. Input from other
stakeholders is provided as required.
The following table summarises the role and responsibility of the PPC as it pertains to remuneration governance and interaction with
other key bodies.
Executive KMP
M Price
P Giles(1)
J Hoang(1)(2)
H Mitchell(1)
C Williamson (3)
Total Executive KMP
Salary
and Fees
$
705,140
168,962
235,429
226,031
347,548
344,715
1,858,863
168,962
Year
2023
2022
2023
2023
2023
2023
2023
2022
Superannuation
$
Total
Remunerations
$
27,500
6,781
27,500
15,515
27,500
27,500
125,515
6,781
732,640
175,743
262,929
241,546
375,048
372,215
1,984,378
175,743
Board
• Consultation between PPC on matters relating to remuneration.
• PPC and Board responsible for diversity and inclusion matters.
• Approves performance and remuneration arrangements for CEO.
• Approves NED fee arrangements.
People & Performance Committee (PPC)
Consists of members appointed by the Board after due consideration
of the composition and skill requirements of the Committee.
The PPC aims to meet three times a year.
(1)
(2)
Participants were appointed as KMPs on 1 July 2023. The amounts reflect the part of the year as KMP.
J Hoang's salary was fully denominated in Singaporean Dollars and was subject to exchange rate movements. The Australian dollar amounts in the table were
converted at an average foreign exchange rate of 0.8938.
(3)
C Williamson was appointed as KMPs on 24 July 2023. The amounts reflect the part of the year as KMP.
Audit & Risk Committee (ARC)
Management
External Advisors
• Refers risk or other related
matters relevant to the business
of the PPC for PPC examination
and action, as required.
• Provides recommendations to
the PPC on matters relating to
remuneration for PPC review,
approval, or endorsement.
• Provision of independent advice
and engagement with the PPC on
PPC related matters.
• Delegation may be provided
by the PPC to management on
certain issues, while maintaining
independence protocols.
• No remuneration
recommendations (as defined
by the Corporations Act 2001)
were provided to the Board by
independent advisors during the
reporting period.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 72
Remuneration Report (continued)
For the year ended 31 December 2023
73
• Approving awards under employee equity plans, the terms on which the equity awards are offered, vesting outcomes and amending,
People & Performance Committee
The PPC is responsible for:
• Making recommendations to the Board in relation to company‑wide remuneration strategies.
• Reviewing the remuneration packages for new and current executives (other than the Group CEO, for which remuneration decisions
are undertaken at the Board level), and approving the base salary and incentives proposed by the Group CEO under these packages.
• Reviewing the performance evaluations prepared by the Group CEO for executives, and reporting on these evaluation criteria and
their application to the Board.
• Developing and regularly reviewing succession plans prepared by the Group CEO for executives.
• Monitoring key appointments and departures as well as trends relating to recruitment, retention, termination, leave and diversity
statistics, any key work health and safety issues and human resource projects.
• Thorough oversight of remuneration strategies for the executives with consideration of alignment to the success of the Company
without rewarding conduct that is contrary to the Company’s values, policies and risk appetite.
• Approving the remuneration policy for all other employees.
suspending and cancelling plans.
• Reviewing the superannuation and pension arrangements for staff on the recommendation of the Group CEO.
More information about the Board’s role in remuneration governance can be found at https://www.iress.com/trust/corporate‑
governance/governance‑documents/board‑charter/.
3.2 Executive KMP service agreements
All Executive KMP have a formal service agreement. Agreements are of an ongoing nature and have no set term of service. Termination
entitlements for Executive KMP are limited to twelve months’ base salary unless shareholder approval is received.
The key terms of the service agreement for the Group CEO are summarised below.
Criterion
Arrangements
Term of contract
Ongoing.
Resignation
Termination on
notice by Iress
Redundancy
Termination for
serious misconduct
Non-compete
The Group CEO may resign by providing six months’ written notice.(1)
Iress may terminate the employment agreement of the Group CEO by providing six months’ written notice, or
payment in lieu of the notice period.
If Iress terminates employment for reasons of bona fide redundancy, a severance payment will be made.
The quantum of the payment will be determined subject to the Board’s discretion, considering matters such
as statutory requirements, the executive’s contribution, position and length of service.
Iress may terminate the employment agreement at any time without notice.
A non‑compete arrangement exists for a period of six months following employment with the Group.(2)
(1) The notice period for Executive KMPs is six months.
(2) The non‑compete period for Executives KMPs is six months.
Section 4 Non-executive director fees
4.1 Fee policy
Non‑Executive Directors (NED) receive fees for their services plus the reimbursement of reasonable expenses. To ensure objective and
independent oversight of the Group, a NED does not participate in performance‑based incentives or receive post‑employment benefits.
The fee levels that applied during 2023 were:
Role
Board
Additional fees for serving on the committees
Audit & Risk Committee
Board Chair(1)
Member
Chair
Member
Chair
Member
Fee ($)
240,000
130,000
24,000
Nil
24,000
Nil
(1) The Chairman is entitled to the Board Chair fee only (no additional Committee fees).
4.2 Maximum aggregate NED fee pool
The maximum aggregate pool available for NED fees is approved by the shareholders at the Annual General Meeting in accordance
with the Group’s Constitution. The maximum pool is set around the median of comparable companies, to provide the ability for Iress
to attract and retain appropriately qualified and experienced directors.
The maximum aggregate fee pool of $1,500,000 per annum was approved at the Annual General Meeting in May 2019. The total
amount of remuneration paid to NEDs in 2023 was $1,035,975 (2022:$907,222).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 74
Remuneration Report (continued)
For the year ended 31 December 2023
4.3 2023 Non-Executive Director remuneration
The total remuneration for NEDs during 2023 and 2022 is set out in the table below. This table is prepared in accordance with statutory
requirements and accounting standards.
Non-Executive Directors
R Sharp(2)
N Beattie
J Cameron(3)
M Dwyer
J Fahey
A Glenning(4)(5)
T Vonhoff(6)
Total
Short-term
benefits
Post
employment
entitlements
Fees
($)
Super-
annuation
($)
292,381
217,688
130,000
130,296
51,061
117,382
117,914
139,053
139,683
120,603
26,611
150,185
147,000
949,604
830,253
31,619
22,312
13,975
13,355
5,105
12,618
12,086
14,947
14,317
9,397
2,794
3,815
7,000
86,371
76,969
Year
2023
2022
2023
2022
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Total(1)
($)
324,000
240,000
143,975
143,651
56,166
130,000
130,000
154,000
154,000
130,000
29,405
154,000
154,000
1,035,975
907,222
(1) NED fees paid are inclusive of superannuation for all NEDs except for N Beattie, who is paid superannuation on‑top of fees due to being based in the UK and the
difficulties estimating the proportion of the fees relating to work performed in Australia.
P Giles(3)
(2) Included in R Sharp's fees, is $84,000 received for additional work or special duties, outside the ordinary ambit of a Chair's role, in respect of additional work
to assist management and the CEO in the ongoing corporate transformation. Roger spent a number of weeks working full‑time on the transformation from
February through June 2023, beyond the scope of a Non‑Executive Chair role. By agreement, he was compensated for approximately half of the additional
time spent. The level and amount of fees were agreed upon by the Audit and Risk Committee Chair.
The requirement for additional work is not expected to re‑occur in the 2024 financial year.
(3) J Cameron ceased to be a NED on 5 May 2022.
(4) A Glenning was appointed to the Board as a NED effective 11 October 2022.
(5) Iress was exempt from the Superannuation Guarantee Charge to A Glenning for three months in 2023.
(6) Iress was exempt from the Superannuation Guarantee Charge to T Vonhoff for six months in 2022 and nine months in 2023.
75
Section 5 Additional required disclosures
5.1 Unvested equity
The table below presents the Historical Equity Rights, Deferred Share Rights and Performance Rights and Options held during the
financial year by each Executive KMP. No rights are granted to NED or related parties. Any rights that vest will be automatically
exercised on or around the time Iress notifies the participant that their rights have vested. Historical Equity Rights and Deferred Share
Rights, as well as LTI Performance Rights are granted for no consideration, and upon vesting, can be exercised at no cost. Options
granted in 2022 are exercisable between the vesting date and expiry date upon payment of the exercise price of $13 per option.
Iress operates an anti‑hedging policy stating that hedging against unvested instruments is prohibited. The Board’s view is that any
participant who enters into such schemes on the unvested component of their equity would be in breach of the terms and conditions
of their grant, and the Board would exercise its right to cancel any of these hedged instruments.
Executive KMP
Executive
KMP
Type of
equity
Grant
date
Number
granted
Fair value
at grant
date
Vesting
date
Expiry
date
Number
vested
(1)(2)
Number
% vested
lapsed % lapsed
Number
unvested
M Price
Equity Rights
Performance
Rights
Performance
Rights
Options
Options
3–Oct–22
13,865
8.25 28–Feb–24 28–Feb–25
3–Oct–22
370,910
1.96 31–Mar–25 31–Mar–25
3–Oct–22
3–Oct–22
3–Oct–22
370,910
666,248
591,582
2.03 31–Mar–26 31–Mar–26
0.61 20–Feb–26 28–Feb–28
0.73 22–Feb–27 28–Feb–29
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total of Options
Total
Performance
Rights
4–Sep–23
Deferred Shares 28–Feb–23
Deferred Shares 28–Feb–23
Deferred Shares 28–Feb–23
Performance
Rights
9–May–22
55,359
2,532
2,531
2,531
0.33 31–Mar–26 31–Mar–26
9.31 27–Feb–26 27–Feb–26
9.31 28–Feb–25 28–Feb–25
9.31 28–Feb–24 28–Feb–24
18,263
2.85 31–Mar–26 28–Feb–27
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
–
–
–
–
–
–
–
–
–
–
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
–
–
–
–
–
–
–
–
–
–
0.00%
13,865
0.00%
370,910
0.00%
370,910
0.00% 666,248
591,582
0.00%
13,865
741,820
1,257,830
2,013,515
0.00%
0.00%
0.00%
0.00%
55,359
2,532
2,531
2,531
0.00%
18,263
7,594
73,622
81,216
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report
76
Remuneration Report (continued)
For the year ended 31 December 2023
77
Type of
equity
Grant
date
Number
granted
Fair value
at grant
date
Vesting
date
Expiry
date
Number
vested
(1)(2)
Number
% vested
lapsed % lapsed
Number
unvested
Executive
KMP
J Hoang(5)
Former Executive KMP
Executive
KMP
Type of
equity
Grant
date
Number
granted
Fair value
at grant
date
Vesting
date
Expiry
date
Number
vested
(1)(2)
Number
% vested
lapsed % lapsed
Number
unvested
Performance
Rights
1–Dec–23
Deferred Shares 28–Feb–23
Deferred Shares 28–Feb–23
Deferred Shares 28–Feb–23
Performance
Rights
9–May–22
Deferred Shares 28–Feb–22
Deferred Shares 28–Feb–22
Deferred Shares 28–Feb–22
26–Feb–21
Equity Rights
Equity Rights
26–Feb–21
Performance
Rights
Performance
Rights
26–Feb–21
28–Feb–20
66,907
2,821
2,821
2,821
18,263
1,967
1,964
1,964
14,379
1,284
0.33 31–Mar–26 31–Mar–26
9.31 27–Feb–26 27–Feb–26
9.31 28–Feb–25 28–Feb–25
9.31 28–Feb–24 28–Feb–24
–
–
–
–
0.00%
0.00%
0.00%
0.00%
2.85 31–Mar–26 28–Feb–27
10.36 28–Feb–25 28–Feb–25
10.36 28–Feb–24 28–Feb–24
10.36 28–Feb–23 28–Feb–23
8.27 28–Feb–23 28–Feb–23
1–Mar–23
8.27
1–Mar–23
–
–
–
(1,964)
(14,379)
(1,284)
0.00%
0.00%
0.00%
100.00%
100.00%
100.00%
–
–
–
–
–
–
–
–
–
–
–
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
66,907
2,821
2,821
2,821
18,263
1,967
1,964
–
–
–
0.00%
14,379
14,379
2.56 28–Feb–24 28–Feb–24
12,034
3.81 28–Feb–23 28–Feb–23
–
–
0.00%
0.00%
(12,034)
100.00%
–
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
H Mitchell
Total
Performance
Rights
4–Sep–23
99,569
0.33 31–Mar–26 31–Mar–26
–
0.00%
–
0.00%
Total of Performance Rights
Total
C Williamson Performance
12,394
99,549
111,943
99,569
99,569
99,569
Rights
4–Sep–23
106,713
0.33 31–Mar–26 31–Mar–26
–
0.00%
–
0.00%
106,713
Total of Performance Rights
Total
106,713
106,713
K Fisk(7)
J Das(6)
Equity Rights
Performance
Rights
Performance
Rights
Equity Rights
Equity Rights
Performance
Rights
28–Feb–22
21,695
9.32 28–Feb–24 28–Feb–24
(21,695)
100.00%
–
0.00%
28–Feb–22
128,398
3.16 31–Mar–25 31–Mar–25
(74,743)
58.21%
(53,655)
41.79%
28–Feb–22
26–Feb–21
26–Feb–21
128,398
26,465
2,362
2.84 31–Mar–26 31–Mar–26
2.56 28–Feb–23 28–Feb–23
1–Mar–23
2.56
1–Mar–23
(56,070)
(26,465)
(2,362)
43.67%
100.00%
100.00%
(72,328)
–
–
56.33%
0.00%
0.00%
26–Feb–21
26,465
8.27 28–Feb–24 28–Feb–24
(24,242)
91.60%
(2,223)
8.40%
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
P Ferguson(7)
Total
Equity Rights
Performance
Rights
Performance
Rights
Equity Rights
Equity Rights
Performance
Rights
Performance
Rights
28–Feb–22
15,384
9.32
3‑Jun‑23
3‑Jun‑23
(15,384)
100.00%
28–Feb–22
91,046
3.16
3‑Jun‑23
3‑Jun‑23
(91,046)
100.00%
28–Feb–22
26–Feb–21
26–Feb–21
91,046
18,766
1,675
2.84
8.27
2.56
3‑Jun‑23
3‑Jun‑23
3‑Jun‑23
3‑Jun‑23
3‑Jun‑23
3‑Jun‑23
(91,046)
(18,766)
(1,675)
100.00%
100.00%
100.00%
26–Feb–21
18,766
2.56
3‑Jun‑23
3‑Jun‑23
(18,766)
100.00%
–
–
–
–
–
–
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
28–Feb–20
14,762
3.81
3‑Jun‑23
3‑Jun‑23
–
0.00%
(14,762)
100.00%
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
28–Feb–22
28–Feb–22
Equity Rights
Performance
Rights
Performance
Rights
28–Feb–22
Deferred Shares 26–Feb–21
Deferred Shares 26–Feb–21
Deferred Shares 28–Feb–20
13,806
9.32 28–Feb–24 28–Feb–24
81,708
3.16 31–Mar–25 31–Mar–25
–
–
0.00%
0.00%
81,708
1,639
1,637
1,066
2.84 31–Mar–26 31–Mar–26
9.19 28–Feb–24 28–Feb–24
9.19 28–Feb–23 28–Feb–23
11.86 28–Feb–23 28–Feb–23
–
–
(1,637)
(1,066)
0.00%
0.00%
100.00%
100.00%
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
–
–
–
–
–
–
0.00%
13,806
0.00%
81,708
0.00%
0.00%
0.00%
0.00%
81,708
1,639
–
–
15,445
163,416
178,861
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 78
Remuneration Report (continued)
For the year ended 31 December 2023
Executive
KMP
J Harris
J McNeill(5)(7)
Type of
equity
Grant
date
Number
granted
Fair value
at grant
date
Vesting
date
Expiry
date
Number
vested
(1)(2)
Number
% vested
lapsed % lapsed
Number
unvested
28–Feb–22
Equity Rights 28–Feb–22
Performance
Rights
Performance
28–Feb–22
Rights
Equity Rights 26–Feb–21
Equity Rights 26–Feb–21
Performance
Rights
Performance
Rights
26–Feb–21
28–Feb–20
24,457
9.32 28–Feb–24 28–Feb–24
(24,457)
100.00%
–
0.00%
144,739
3.16 31–Mar–25 31–Mar–25
(84,256)
58.21%
(60,483)
41.79%
144,740
29,833
2,663
2.84 31–Mar–26 31–Mar–26
8.27 28–Feb–23 28–Feb–23
1–Mar–23
2.56
1–Mar–23
(63,207)
(29,833)
(2,663)
43.67%
100.00%
100.00%
(81,533)
–
–
56.33%
0.00%
0.00%
29,833
2.56 28–Feb–24 28–Feb–24
(27,327)
91.60%
(2,506)
8.40%
23,468
3.81 28–Feb–23 28–Feb–23
–
0.00%
(23,468)
100.00%
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
–
–
–
–
–
–
–
–
–
–
28–Feb–22
Equity Rights 28–Feb–22
Performance
Rights
Performance
28–Feb–22
Rights
Equity Rights 26–Feb–21
Equity Rights 26–Feb–21
Performance
Rights
Performance
Rights
26–Feb–21
28–Feb–20
16,826
9.32 28–Feb–24 28–Feb–26
99,580
3.16 31–Mar–25 31–Mar–26
–
–
0.00%
0.00%
99,581
19,713
1,760
2.84 31–Mar–26 31–Mar–27
8.27 28–Feb–23 28–Feb–25
1–Mar–23
2.56
1–Mar–23
–
(19,713)
(1,760)
0.00%
100.00%
100.00%
19,713
2.56 28–Feb–24 28–Feb–24
16,553
3.81 28–Feb–23 28–Feb–23
–
–
0.00%
–
–
–
–
–
–
0.00%
16,826
0.00%
99,580
0.00%
0.00%
0.00%
99,581
–
–
0.00%
19,713
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
0.00%
(16,553)
100.00%
–
16,826
218,874
235,700
79
Grant
date
Number
granted
Fair value
at grant
date
Vesting
date
Expiry
date
Number
vested
(1)(2)
Number
% vested
lapsed % lapsed
Number
unvested
Type of
equity
Equity Rights
Performance
Rights
Performance
Rights
Equity Rights
Equity Rights
Performance
Rights
Performance
Rights
Executive
KMP
S New(5)
A Todd
28–Feb–22
24,142
9.32 28–Feb–24 28–Feb–26
(24,142)
100.00%
–
0.00%
28–Feb–22
142,876
3.16 31–Mar–25 31–Mar–26
(83,953)
58.76%
(58,923)
41.24%
28–Feb–22
26–Feb–21
26–Feb–21
142,876
28,284
2,525
2.84 31–Mar–26 31–Mar–27
8.27 28–Feb–23 28–Feb–25
1–Mar–23
2.56
1–Mar–23
(62,979)
(28,284)
(2,525)
44.08%
100.00%
100.00%
(79,897)
–
–
55.92%
0.00%
0.00%
26–Feb–21
28,284
2.56 28–Feb–24 28–Feb–24
(26,063)
92.15%
(2,221)
7.85%
28–Feb–20
23,750
3.81 28–Feb–23 28–Feb–23
–
0.00%
(23,750)
100.00%
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
Equity Rights
Performance
Rights
Performance
Rights
Equity Rights
Equity Rights
Performance
Rights
Performance
Rights
28–Feb–22
24,851
9.32 28–Feb–24 28–Feb–24
(24,851)
100.00%
–
0.00%
28–Feb–22
147,074
3.16 31–Mar–25 31–Mar–25
(97,960)
66.61%
(49,114)
33.39%
28–Feb–22
26–Feb–21
26–Feb–21
147,074
30,314
2,706
2.84 31–Mar–26 31–Mar–26
8.27 28–Feb–23 28–Feb–23
1–Mar–23
2.56
1–Mar–23
(73,487)
(30,314)
(2,706)
49.97%
100.00%
100.00%
(73,587)
–
–
50.03%
0.00%
0.00%
26–Feb–21
30,314
2.56 28–Feb–24 28–Feb–24
(30,314)
100.00%
–
0.00%
28–Feb–20
23,846
3.81 28–Feb–23 28–Feb–23
–
0.00%
(23,846)
100.00%
Total of Equity Rights and Deferred Share Rights
Total of Performance Rights
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1) Includes equity instruments held by the individual and in a nominated trust.
(2) All Equity Rights, Deferred Share Rights and Performance Rights that vested during the year were exercisable, except for participants in the United Kingdom.
For former KMP who have exited, any retained rights with future vesting dates are shown as fully vested at 31 December 2023 in accordance with AASB2
however remain subject to retained performance conditions to the future vesting date.
(3) P Giles was awarded Deferred Shares and Performance Rights prior to being appointed KMP on 1 July 2023.
(4) J Hoang was awarded Deferred Shares and Performance Rights prior to being appointed KMP on 1 July 2023.
(5) Equity Rights vested for United Kingdom participants during the year are not exercisable until the end of the exercise restriction period.
(6) J. Das’ number of unvested shares as at 31 March 2023 when ceasing to be a KMP upon exiting the company.
(7) Number of unvested shares as at 30 June 2023 of participants when they ceased to be KMPs.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 81
5.3 Transactions with KMP
No transactions (excluding remuneration as outlined in this report) occurred between KMP and the Group during 2023.
5.4 Loans to KMP or related parties
No loans to KMP or related parties were provided during 2023.
This Directors’ Report has been verified by Management and reviewed by the Company’s Board of Directors and its Audit
and Risk Committee.
Signed in accordance with a resolution of the Directors made pursuant to s.298(2) of the Corporations Act 2001 (Cth).
On behalf of the Directors.
Julie Fahey
Chair of the People & Performance Committee
Melbourne
21 February 2024
80
Remuneration Report (continued)
For the year ended 31 December 2023
5.2 Shareholdings
The number of ordinary shares held in Iress Limited during the financial year by each KMP is set out below. Included for each individual
are shares held on their behalf by the trustee of the Iress Limited Equity Plans Trust and their personally related parties.
NED
NEDs have a Minimum Shareholding Requirement (MSR) to be met either by 31 December 2023, or within three years of their
appointment if past this date. NEDs are required to accrue and hold Iress equity equivalent to 100% of the base fee for being a
Member of the Board, unless otherwise determined by the Board.
NED
R Sharp
N Beattie
M Dwyer
J Fahey
A Glenning
T Vonhoff
Total
Balance
as at
01 Jan 2023
20,202
15,820
12,609
13,225
–
23,864
85,720
Shares
acquired
during
the year
37,973
6,788
2,000
–
15,455
6,640
Other
changes
Balance
as at
31 Dec 2023
(10,101)
–
–
–
–
–
48,074
22,608
14,609
13,225
15,455
30,504
Value of
holdings as
a % of base
fees(1)
Date Minimum
Shareholding
Requirement
to be met
(2)(3)
388%
158%
112%
110%
92%
240%
18 Feb 2024
31 Dec 2022
01 Feb 2023
31 Dec 2022
11 Oct 2025
01 Feb 2023
68,856
(10,101)
144,475
(1) The value of shares for the purpose of the Minimum Shareholding Requirement calculation is the higher of the share price at 31 December 2023
(twenty‑trading‑day volume‑weighted average share price up to and including 31 December 2023) and the purchase price.
(2) NEDs appointed on or after 1 January 2020 are required to accrue and hold Iress equity equivalent to 100% of the base fee for being a Member of the Board
within three years of their appointment.
(3) NEDs appointed prior to 1 January 2020 are required to accrue and hold Iress equity equivalent to 100% of the base fee for being a Member of the Board
by 31 December 2022.
Executive KMP
Executive KMPs have a Minimum Shareholding Requirement to be met within five years of commencing. The CEO is required to accrue
and hold Iress equity equivalent to 400% of base salary, which for M Price is required by 3 October 2027. Executives are required to hold
225% of their base salary. Unvested Historical Equity Rights count towards the requirement but unvested Performance Rights and
Options do not.
Balance
as at
1 Jan 2023
63,533
7,683
65,866
‑
‑
137,082
Equity
Rights
granted
during
the year
Equity
Rights
Lapsed
during
the year
‑
‑
‑
‑
‑
-
‑
‑
‑
‑
‑
-
Shares
acquired
during
the year(1)
15,576
‑
‑
19,569
23,200
58,345
Other
changes
‑
‑
‑
‑
‑
-
Balance
as at
31 Dec(2)
79,109
7,683
65,866
19,569
23,200
195,427
Executive KMP
M Price(6)
P Giles(7)
J Hoang(7)
H Mitchell
C Williamson
Total
(1) Shares acquired by executive KMP during the year were directly acquired (purchased).
(2) Includes unvested Historical Equity Rights and excludes unvested Performance Rights and Options.
(3) The value of holding as a % of base salary was calculated in accordance with the Minimum Shareholding Requirement Policy.
(4) The CEO is required to accrue and hold Iress equity equivalent to 400% of the base salary within five years of appointment.
Percentage
of holdings
value to
base
salary
(3)(4)(5)
Date
Minimum
Share-
holding
Require-
ment to
be met
(2)(3)
120% 03 Oct 2027
01 Jul 2028
01 Jul 2028
01 Jul 2028
24 Jul 2028
16%
167%
23%
27%
(5) Executive KMP appointed on or after 1 January 2019 require to accrue and hold Iress equity equivalent to 225% of their base salary within five years of
their appointment.
(6) The opening balance includes unvested 2022 Historical Equity Rights.
(7) Participants were appointed as KMPs on 1 July 2023. The opening balance reflects the share acquired prior to the date of becoming KMPs. No shares were
acquired after the date of becoming a KMP.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportRemuneration Report 82
83
Auditor’s Independence Declaration
Financial Statements
For the year ended 31 December 2023
This is the financial report for Iress Limited (the ‘Company’) and its controlled entities (collectively referred to as the ‘Group’ or ‘Iress’)
For the year ended 31 December 2023.
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Auditor’s independence declaration to the directors of Iress Limited
As lead auditor for the audit of the financial report of Iress Limited for the financial year ended 31
December 2023, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Iress Limited and the entities it controlled during the financial year.
Ernst & Young
David J Petersen
Partner
21 February 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Section 1. Financial results
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
Segment information
Earnings per share and dividends per share
Revenue from contracts with customers
Employee benefit expenses
Share‑based payments
Other expenses
Amortisation, depreciation, derecognition and impairment
Notes to the Consolidated Statement of Cash Flows
Section 2. Core assets and working capital
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
Intangible assets
Plant and equipment
Leases
Derivative financial instruments
Receivables and other assets
Payables and other liabilities
Provisions
Commitments and contingencies
Section 3. Debt facilities, derivatives and equity
3.1
3.2
3.3
Borrowings
Issued capital
Managing financial risks
Section 4. Other disclosures
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
Taxation
Sale of subsidiary
Assets held‑for‑sale
Iress Limited – parent entity financial information
Subsidiaries
Deed of cross guarantee
Basis of preparation
Significant sources of estimation uncertainty
Transactions with related parties
4.10
Events subsequent to the Statement of Financial Position date
Directors’ Declaration
Independent Auditor’s Report
Shareholder information
Corporate directory
84
85
86
87
88
88
88
90
91
94
95
98
99
100
101
101
104
105
108
110
113
114
115
115
115
117
117
119
119
122
122
123
124
125
126
129
129
129
130
131
136
137
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements
84
85
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the year ended 31 December 2023
Consolidated Statement of Financial Position
As at 31 December 2023
Revenue from contracts with customers
Employee benefit expenses
Customer data fees
Communication and other technology expenses
Professional fees
Business development and marketing
General office and administration
Amortisation, depreciation, derecognition and impairment expense
Gains on disposal of subsidiary
(Loss)/profit before interest and income tax expense
Finance income
Finance costs
Net finance income and costs
(Loss)/profit before income tax expense
Income tax expense
(Loss)/profit after income tax expense
Other comprehensive income
Items that may be reclassified to profit or loss:
Net movement of cash flow hedge
Exchange differences on translation of foreign operations
Total other comprehensive income/(loss) for the year
Total comprehensive (loss)/profit for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
Notes
1.3(a)
1.4
1.6(a)
1.7
4.2
3.1(d)
4.1(a)
2023
$’000
625,743
(347,791)
(57,558)
(84,951)
(30,918)
(6,134)
(27,875)
(193,392)
17,592
(105,284)
1,928
(23,709)
(21,781)
(127,065)
(10,419)
(137,484)
150
10,772
10,922
(126,562)
2022
$’000(1)
615,589
(316,309)
(55,151)
(76,616)
(10,643)
(3,469)
(29,394)
(43,396)
–
80,611
1,007
(13,698)
(12,691)
67,920
(15,248)
52,672
(150)
(12,693)
(12,843)
39,829
Cents
per share
Cents
per share
1.2(a)
1.2(a)
(76.4)
(76.4)
28.6
28.0
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
(1) Expenses within the comparative information for the year ended 31 December 2022 have been reclassified to present certain items in more detail.
ASSETS
Current assets
Cash and cash equivalents
Receivables and other assets
Assets held‑for‑sale
Current taxation receivables
Total current assets
Non-current assets
Intangible assets
Plant and equipment
Right‑of‑use assets
Deferred tax assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Payables and other liabilities
Lease liabilities
Provisions
Liabilities held‑for‑sale
Derivative liabilities
Current taxation payables
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Borrowings
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Issued capital
Share‑based payments reserve
Cash flow hedge reserve
Foreign currency translation reserve
Accumulated losses
Total equity
Notes
2023
$’000
2022
$’000
1.8(a)
2.5(a)
4.3(a)
2.1(a)
2.2(a)
2.3(c)
4.1(c)
2.6
2.3(d)
2.7(a)
4.3(a)
2.4(d)
2.3(d)
2.7(a)
3.1(a)
4.1(c)
3.2
2.4(d)
43,881
82,997
11,584
2,732
63,353
83,661
–
11,552
141,194
158,566
550,706
23,864
50,281
26,172
651,023
724,998
28,519
60,638
27,340
841,495
792,217
1,000,061
74,466
14,141
17,295
3,650
–
540
69,961
15,447
21,458
–
150
451
110,092
107,467
45,254
1,299
363,563
–
410,116
520,208
272,009
419,343
25,366
–
5,402
(178,102)
272,009
58,880
2,463
388,424
9,014
458,781
566,248
433,813
419,065
26,329
(150)
(5,370)
(6,061)
433,813
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 86
87
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Consolidated Statement of Cash Flows
For the year ended 31 December 2023
Balance at 1 January 2022
Profit for the year
Other comprehensive loss
Total comprehensive (loss)/income
Transactions with owners in their capacity
as owners:
Shares issued under employee Share
Purchase Plan
Purchase of shares for employee
share schemes
On‑market buy‑back of shares
Dividends declared or paid
Share‑based payment expense, net of tax
Transfer of share‑based payments reserve(2)
Balance at 31 December 2022
Balance at 1 January 2023
Loss for the year
Other comprehensive income
Total comprehensive income/(loss)
Transactions with owners in their capacity
as owners:
Shares issued under employee Share
Purchase Plan
Dividends declared or paid
Share‑based payment expense
Cash settled equity shares
Transfer of share‑based payments reserve(2)
Issued
Capital
$’000
493,883
–
–
–
394
(22,957)
(52,255)
–
–
–
(74,818)
419,065
Issued
Capital
$’000
419,065
–
–
–
278
–
–
–
–
278
Balance at 31 December 2023
419,343
26,178
–
–
–
–
–
–
–
18,747
(18,596)
151
26,329
Share-based
Payments
Reserve
$’000
Cash flow
hedge
reserve(1)
$’000
Foreign
Currency
Translation
Reserve
$’000
Retained
Earnings/
(Accumulated
Losses)
$’000
–
–
(150)
(150)
7,323
–
(12,693)
(12,693)
9,529
52,672
–
52,672
Total
Equity
$’000
536,913
52,672
(12,843)
39,829
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
394
–
–
(86,858)
–
18,596
(22,957)
(52,255)
(86,858)
18,747
–
(68,262)
(142,929)
(150)
(5,370)
(6,061)
433,813
Share-based
Payments
Reserve
$’000
Cash flow
hedge
reserve(1)
$’000
26,329
–
–
–
–
–
20,500
(645)
(20,818)
(963)
25,366
(150)
–
150
150
–
–
–
–
–
–
–
Foreign
Currency
Translation
Reserve
$’000
(5,370)
–
10,772
10,772
Accumulated
Losses
$’000
(6,061)
(137,484)
–
Total
Equity
$’000
433,813
(137,484)
10,922
(137,484)
(126,562)
–
–
–
–
–
–
–
(55,375)
–
–
20,818
(34,557)
278
(55,375)
20,500
(645)
–
(35,242)
5,402
(178,102)
272,009
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
(1) The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective in cash flow hedges. The
cumulative deferred gain or loss on the hedging instrument is recognised in profit or loss only when the hedged transaction affects the profit or loss, or is
included directly in the initial cost or other carrying amount of the hedged non‑financial items (basis adjustment).
(2) The movement from share‑based payment reserves to accumulated losses represents the grant date fair value of share‑based payments that have vested
or lapsed during the year. The amount had previously been recognised as a share‑based payment expense over the vesting period. Details of share‑based
payment arrangements are provided in Note 1.5.
Cash flows from operating activities
Receipts from customers
Payments to suppliers
Payments to employees
Interest received
Interest and borrowing costs paid
Interest on lease liabilities
Income tax paid
Net cash inflow generated from operating activities
Cash flows from investing activities
Payments for development of intangible assets
Payments for purchase of plant and equipment
Proceeds from sale of plant and equipment
Payment for deferred consideration
Proceeds from disposal of subsidiary
Net cash inflow generated from/(outflow utilised by) investing activities
Cash flows from financing activities
Purchase of shares for employee share schemes
On‑market buyback of shares
Share buyback fees paid
Proceeds from employee share plan repayments
Payment of lease liabilities
Dividends paid
Proceeds from borrowings
Repayment of borrowings
Net cash outflow utilised by financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of the year
Notes
2023
$’000
2022
$’000
2.3(a)
1.8(b)
2.1(a)
2.2(a)
2.7(b)
3.2
3.2
3.2
3.2
2.3(d)
3.1(b)
3.1(b)
701,817
(281,190)
(326,641)
1,917
(21,307)
(1,924)
(9,007)
63,665
(14,059)
(5,369)
6
–
45,208
25,786
–
–
–
278
(17,104)
(55,424)
114,471
(150,471)
(108,250)
(18,799)
63,353
(673)
43,881
685,855
(251,066)
(295,499)
537
(11,151)
(2,309)
(13,788)
112,579
(19,903)
(7,706)
53
(4,400)
–
(31,956)
(22,957)
(52,224)
(31)
394
(15,283)
(86,896)
369,850
(270,704)
(77,851)
2,772
64,393
(3,812)
63,353
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 88
Notes to the Consolidated Financial Statements
For the year ended 31 December 2023
Section 1. Financial results
1.1 Segment information
Operating segments have been reported in a manner consistent
with internal management reporting provided to the chief
operating decision‑maker (“CODM”). The CODM consists of the
Managing Director and Chief Executive Officer.
(a) Operating segments
Iress’ business revenues are predominantly derived from software
development and distribution. During the year, Iress changed its
organisation structure from being functionally‑led to product‑led.
As a result of the organisational structure change, Iress’ operating
segments have changed from those disclosed in prior periods
to reflect the new product led structure and internal reporting to
the CODM. Segment information for the year ended 31 December
2022 has also been restated to reflect the new operating
segments. Iress Group has determined the following distinct
reportable business segments on which the Group reports its
primary segment information:
APAC Trading & Global Market Data
• APAC Trading & Global Market Data provides comprehensive
solutions to financial market participants, encompassing market
data, trading, compliance, order management, portfolio, and
related tools designed to enhance business efficiencies.
APAC Wealth Management
• APAC Wealth Management provides financial advice software
and related tools to the advice and superannuation industries.
Superannuation
• Superannuation provides fund administration software, services
and related tools to the Australian superannuation industry.
Managed Portfolio – UK
Portfolio of ancillary businesses, comprising:
• UK Financial Markets provides information, trading, compliance,
order management, portfolio systems, and related tools to cash
equity participants
• UK Wealth Management provides financial advice software and
related tools to wealth management professionals located in
the United Kingdom
• Sourcing provides insurance and mortgage comparison tools
for UK financial advisers
• Mortgages provides mortgage origination software and
associated consulting services to banks in the United Kingdom.
Managed Portfolio – Other
Portfolio of ancillary businesses in South Africa, Canada and
Australia comprising:
• Financial Markets businesses provide comprehensive solutions,
encompassing information, trading, compliance, order
management, portfolio systems and related tools to financial
market participants located in South Africa and Canada
• Wealth Management provides financial planning systems and
related tools to wealth management professionals located in
South Africa
• Platform administration services provides technology and data
services to the Australian wealth industry, bringing innovative
solutions to support licensees, advisers and stockbrokers to
deliver services to their clients. Platform fund administration
services include managed funds, managed accounts and
administration services.
The CODM assesses the performance of each operating
segment based on underlying earnings before tax, depreciation
and amortisation (underlying EBITDA). This is a non‑IFRS
measure that excludes items not considered relevant in
evaluating segment performance. This includes the amortisation
and impairment of intangible assets, transaction and integration
costs together with investment gains and losses associated with
mergers and acquisitions, and other significant non‑operating
items including, interest income and expense, tax and
non‑recurring transformation expenses that are not considered
part of the ongoing run‑rate of the business.
(b) The segment revenue, underlying earnings/(loss) before interest, tax, depreciation and amortisation (EBITDA) and
reconciliation to the Group results are outlined below:
APAC Trading
& Global
Market Data
$’000
APAC
Wealth
Management
$’000
174,357
(106,619)
(22,756)
44,982
132,749
(54,178)
(23,502)
55,069
Super-
annuation
$’000
49,948
(41,890)
(6,780)
1,278
Managed
Portfolio
– UK
$’000
158,950
(99,931)
(23,491)
35,528
Managed
Portfolio
– Other
$’000
99,585
(80,215)
(9,842)
9,528
APAC Trading
& Global
Market Data
$’000
APAC
Wealth
Management
$’000
178,503
(110,785)
(27,220)
40,498
130,419
(57,591)
(25,676)
47,152
Super-
annuation
$’000
54,186
(49,045)
(7,653)
(2,512)
Managed
Portfolio
– UK
$’000
167,898
(104,599)
(28,617)
34,682
Managed
Portfolio
– Other
$’000
94,737
(74,878)
(11,399)
8,460
For the year ended
31 December 2022 (restated)
Revenue from contracts with customers
Direct operating expenses
Other expenses
Underlying EBITDA
Non‑operating items(1)
Amortisation, depreciation, derecognition
and impairment expense
Profit/(loss) before interest and income
tax expense
Net interest and financing expenses
Profit before income tax expense
Income tax expense
Profit after income tax expense
For the year ended
31 December 2023
Revenue from contracts with customers
Direct operating expenses
Other expenses
Underlying EBITDA
Non‑operating items(1)
Amortisation, depreciation, derecognition
and impairment expense
Gains on disposal of subsidiary
Profit/(loss) before interest and income
tax expense
Net interest and financing expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense
89
Total
$’000
615,589
(382,833)
(86,371)
146,385
(22,378)
(43,396)
80,611
(12,691)
67,920
(15,248)
52,672
Total
$’000
625,743
(396,898)
(100,565)
128,280
(57,764)
(193,392)
17,592
(105,284)
(21,781)
(127,065)
(10,419)
(137,484)
(1) Predominantly relates to significant non‑recurring project related expenses, business acquisition and integration expenses and realised and unrealised
foreign exchange gains and losses.
(c) Geographical information
Iress Group has an established international infrastructure targeted to serve markets in the following geographical segments, namely:
• Asia Pacific
• UK & Europe
• Africa
• North America
Australia, Malaysia, New Zealand and Singapore
France and United Kingdom
South Africa and Tunisia
Canada and United States of America
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements
90
91
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
1.1 Segment information (continued)
(c) Geographical information (continued)
The following table provides an analysis by geographical market of the Group’s operating revenue irrespective of the origin of the goods
and services and summarised statement of financial position:
For the year ended 31 December 2022
Revenue from contracts with customers
Non‑current assets
For the year ended 31 December 2023
Revenue from contracts with customers
Non‑current assets
Asia Pacific
$’000
UK & Europe
$’000
346,987
486,594
201,506
329,293
Asia Pacific
$’000
UK & Europe
$’000
347,642
424,416
210,881
204,207
Africa
$’000
43,445
14,803
Africa
$’000
42,205
12,067
North
America
$’000
23,651
10,805
North
America
$’000
25,015
10,333
Total
$’000
615,589
841,495
Total
$’000
625,743
651,023
Total assets and liabilities are reviewed at a consolidated Iress Group level, and segment assets and liabilities are not regularly reviewed
by the CODM.
1.2 Earnings per share and dividends per share
(a) Basic and diluted earnings per share, and dividends per share, for the year are:
(Loss)/profit per share
Diluted (loss)/profit per share(1)
Dividends per share:
Interim dividend franked to 0% (2022: 25%)
Final dividend declared after the Statement of Financial Position date (2022: franked to 0%)
Cents
per share
Cents
per share
2023
(76.4)
(76.4)
–
–
2022
28.6
28.0
16.0
30.0
(1) Potentially dilutive ordinary shares for the year ended 31 December 2023 have not been included in the calculation of diluted earnings per share as they were
considered anti‑dilutive.
(b) The weighted average number of shares used to calculate earnings per share is as follows:
Weighted average number of ordinary shares used in basic earnings per share
Effect of potentially dilutive shares
Weighted average number of ordinary shares used in diluted earnings per share
Number
of shares
2023
‘000
179,960
5,518
185,478
Number
of shares
2022
‘000
184,157
4,078
188,235
(c) Dividends recognised during the year and after the Statement of Financial Position date were as follows:
Dividends paid during the year
Final dividend for the 2022 financial year: 30.0 cents per share franked to 0% (2021: 30.0 cents per share
franked to 15%)
Interim dividend for the 2023 financial year: nil (2022: 16.0 cents per share franked to 25%)
Dividends declared after balance date
Final dividend for the 2023 financial year: nil (2022: 30.0 cents per share franked to 0%)
Franking credit balance
Franking credits available for subsequent reporting periods based on a tax rate of 30% (2022: 30%)
2023
$’000
2022
$’000
55,375
–
55,375
–
27
56,889
29,969
86,858
55,375
185
1.3 Revenue from contracts with customers
Iress designs, develops, and delivers technology solutions for the financial services industry in Australia, Asia, New Zealand, UK & Europe,
South Africa and North America.
From these activities, Iress generates the following streams of revenue:
• Software licence revenue
• Implementation and consulting revenue
• Royalties revenue from the provision of financial market information
• Other ancillary fees such as hosting and support service fees.
Each of the above services delivered to customers are considered separate performance obligations, even though for practical
expedience they may be governed by a single legal contract with the customer.
Revenue recognition for each of the above revenue streams is as follows:
Revenue stream Performance obligation
Timing of recognition
Software
licence
revenue
Access to software.
Implementation
and consulting
revenue
As defined in the
contract.
For implementation
revenue – typically the
completion of data
conversions, completion
of user acceptance
testing, provision of
functional environments.
Royalties
revenue
Provision of financial
market information.
Other
ancillary fees
Provision of hosting
services, cloud
services, support and
maintenance services.
Software licence revenue is recognised over time as the customer simultaneously receives and
consumes the benefit of accessing the software.
Revenue can either be calculated based on the number of licences used and rate per licence,
or as a negotiated package for large customers, or based on funds under administration or
transaction volume.
Software licence revenue is recognised as the amount to which the Group has a right to invoice.
Customers are typically invoiced monthly and consideration is payable when invoiced, which
corresponds directly with the performance completed to date in respect of this stream.
Revenue is recognised over time as services are delivered.
Revenue from providing services is recognised in the accounting period in which the services
are rendered.
Revenue is calculated based on time and materials used.
For fixed‑price contracts, revenue is recognised based on the actual service provided
to the end of the reporting period.
Recognition is determined based on the actual labour hours spent as a proportion of total
expected hours. This requires a judgement of the forecast expected hours and changes
in implementation timing.
If contracts include the installation of hardware, revenue for the hardware is recognised at a point
in time when the hardware is delivered, the legal title has passed, and the customer has accepted
the hardware.
Royalties revenue is recognised over time as the customer simultaneously receives and
consumes the benefit of accessing the information.
Royalties revenue is recognised as the amount to which the Group has the right to invoice.
Customers are typically invoiced monthly and consideration is payable when invoiced, which
corresponds directly with the performance completed to date in respect of this stream.
Over time, as the customer simultaneously receives and consumes the benefit of the
communication line/server hardware/cloud infrastructure.
Customers are typically invoiced monthly in advance in accordance with their agreements.
There is generally a longer lead time for new lines/servers than the other revenue streams.
Some contracts include multiple deliverables, such as implementation services and software licences.
Because the implementation services do not include client‑specific material software customisation, and could be performed by
another party, the implementation service and software licences are accounted for as separate performance obligations. In these
cases, the transaction prices are allocated to each performance obligation based on the stand‑alone selling prices. Where these are
not directly observable, they are estimated based on expected cost plus a margin.
Principal versus Agent
In accordance with AASB 15 Revenue from contracts with customers, a principal recognises revenue and the corresponding expenses in
gross amounts, whereas an agent recognises fees or commissions, irrespective of whether gross cash flows pass through the agent.
Upon the inception of Iress entering into an agreement to provide goods or services to a customer, Iress determines whether the nature
of its promise is a performance obligation to provide the specified goods or services itself and act as a principal or whether it arranges
for those goods or services to be provided by the other party and act as an agent.
Iress has assessed that for most of its revenue streams such subscription services, trading services, royalties, news and trading
volumes to be acting as a principal and recognises revenue in the gross amount of consideration to which it expects to be entitled in
exchange for the specified good or service transferred.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 92
93
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
1.3 Revenue from contracts with customers (continued)
In fixed‑price contracts, the customer pays the fixed amount based on an agreed payment schedule. If the services rendered by the Group
exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.
If the contract includes an hourly fee, revenue is recognised at the amount to which the Group has the right to invoice (i.e. based on
hours actually incurred in providing the service to the client). Customers are generally invoiced monthly for their access in that month,
and consideration is payable when invoiced.
(a) Revenue by geographical segment:
Revenue stream
For the year ended 31 December 2022
Software licence revenue
Royalties revenue
Other ancillary fees
Implementation and consulting revenue
Total revenue
Revenue stream
For the year ended 31 December 2023
Software licence revenue
Royalties revenue
Other ancillary fees
Implementation and consulting revenue
Total revenue
Revenue
recognition
Over time
Over time
Over time
Over time
Revenue
recognition
Over time
Over time
Over time
Over time
Asia
Pacific
$’000
296,274
29,495
11,591
9,627
346,987
Asia
Pacific
$’000
295,348
28,699
10,039
13,556
347,642
UK &
Europe
$’000
162,261
12,385
5,355
21,505
201,506
UK &
Europe
$’000
171,458
12,112
6,142
21,169
210,881
Africa
$’000
39,801
1,973
1,566
105
43,445
Africa
$’000
39,897
1,116
1,105
87
42,205
North
America
$’000
18,785
3,072
1,794
–
23,651
North
America
$’000
20,235
3,082
1,698
–
25,015
(b) Receivables, contract assets, and contract liabilities from contracts with customers by geographical segment:
For the year ended 31 December 2022
Trade receivables
Contract assets
Contract liabilities
For the year ended 31 December 2023
Trade receivables
Contract assets
Contract liabilities
Asia
Pacific
$’000
20,867
6,240
(1,447)
Asia
Pacific
$’000
16,976
3,646
(987)
UK &
Europe
$’000
11,088
5,714
(15,408)
UK &
Europe
$’000
8,711
3,434
(15,248)
Notes
2.5(a)
2.5(a)
2.6
Notes
2.5(a)
2.5(a)
2.6
Africa
$’000
2,100
350
(79)
Africa
$’000
1,475
426
(20)
North
America
$’000
745
–
(267)
North
America
$’000
928
–
(227)
Total
$’000
517,121
46,925
20,306
31,237
615,589
Total
$’000
526,938
45,009
18,984
34,812
625,743
Total
$’000
34,800
12,304
(17,201)
Total
$’000
28,090
7,506
(16,482)
(c) Revenue recognised in relation to contract assets and liabilities:
Balance at the beginning of the year
Transfer from contract assets to receivables
Revenue raised for work performed but not yet billed
Decrease due to revenue recognised from performance obligations satisfied
Increase due to cash received, excluding amount recognised during the year
Reclassified to assets held‑for‑sale
Foreign currency translation
Balance at the end of the year
Contract assets
Contract liabilities
2023
$’000
12,304
(12,600)
8,512
–
–
(993)
283
7,506
2022
$’000
13,687
(13,460)
12,341
–
–
–
(264)
12,304
2023
$’000
(17,201)
–
–
17,858
(16,651)
124
(612)
(16,482)
2022
$’000
(16,504)
–
–
16,063
(16,907)
–
147
(17,201)
(d) Transaction price allocated to the remaining performance obligations
Revenue from existing contracts expected to be recognised in the future which relates to performance obligations that are unsatisfied
(or partially satisfied) at the reporting date:
Year in which
transaction
price is
expected to
be realised
2024
2025
2026
Total
Revenue stream
Software licence revenue
Implementation and
consulting revenue
Royalties revenue
Other ancillary fees
Total revenue
Software licence revenue
Implementation and
consulting revenue
Total revenue
Implementation and
consulting revenue
Total revenue
Software licence revenue
Implementation and
consulting revenue
Royalties revenue
Other ancillary fees
Total revenue
Revenue
recognition
Over time
Over time
Over time
Over time
Over time
Over time
Over time
Over time
Over time
Over time
Over time
Asia
Pacific
$’000
1,034
4,031
9
–
5,074
–
3,700
3,700
631
631
1,034
8,362
9
–
9,405
UK &
Europe
$’000
3,264
597
–
–
3,861
283
–
283
–
–
3,547
597
–
–
4,144
Africa
$’000
North
America
$’000
–
–
–
20
20
–
–
–
–
–
–
–
–
20
20
–
–
–
227
227
–
–
–
–
–
–
–
–
227
227
Total
$’000
4,298
4,628
9
247
9,182
283
3,700
3,983
631
631
4,581
8,959
9
247
13,796
The Group applies the practical expedient in the revenue standard and does not disclose information about the remaining performance
obligation on contracts that have an original expected duration of one year or less, or where the Group has the right to consideration
from a customer in an amount that corresponds directly with the value to the customer of the Group’s performance to date.
The table above, therefore, does not include revenue expected to be recognised in future years on software licences, royalties and
other ongoing contracts where the Group will recognise revenue in the amount to which the entity has a right to invoice.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 94
95
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
1.4 Employee benefit expenses
Short‑term employee benefits, mainly comprising base salary and annual leave costs, are expensed as the employee renders services.
Post‑employment benefits, which comprise Iress’ contribution to defined contribution retirement plans, are expensed as the
service is received from the employee.
Termination benefits are amounts paid to employees when their employment is terminated. These are expensed when Iress can
no longer withdraw the offer of the termination benefit.
Short‑term and other employee benefits
Post‑employment benefits
Termination benefits and redundancy expenses
Share‑based payment expense
Employee administration expense
Total employee benefit expenses
Notes
1.5(c)
2023
$’000
(280,764)
(24,468)
(14,062)
(20,500)
(7,997)
2022
$’000
(267,661)
(23,546)
(614)
(18,747)
(5,741)
(347,791)
(316,309)
Key Management Personnel
Executive and Non‑Executive Director Key Management Personnel compensation included in total employee benefits:
Short‑term and other employee benefits
Long‑term employee benefits
Post‑employment benefits
Share‑based payment expense
Termination benefits
2023
$’000
(5,904)
2
(263)
(4,147)
(1,632)
2022
$’000
(5,343)
9
(320)
(4,201)
–
(11,944)
(9,855)
Detailed remuneration disclosures are provided in the Audited Remuneration Report, including a description of the executive
remuneration framework.
1.5 Share-based payments
The grant date fair value of equity settled share‑based payment awards granted to employees is recognised as an expense, with a
corresponding increase to shareholders equity, over the vesting period of the awards. The amount recognised as an expense is fair
valued at the time the award is granted reflecting the number of awards for which the related service and non‑market performance
conditions are expected to meet. Therefore, the amount ultimately recognised is based on the number of awards that meet the related
service and non‑market performance conditions at the vesting date.
(a) Details of share plans
To assist in the attraction, retention and motivation of employees, the Group operated the following share‑based payment plans
up to the end of 2023:
Plan
Key terms
Performance
condition/exercise
price
Performance/
restriction/exercise
period
Dividends received
before vesting
Executive Options
Plan – CEO – 2022
CEO receives
options in return for
a 30% reduction in
fixed remuneration
Price payable on
exercise is $13 per
option
No
3.4 years followed
by 2 year exercise
period; and
4.4 years followed by
2 year exercise period
If participant leaves
before end of
performance period
Generally retained
(pro‑rata if CEO
leaves before
grant 1 vesting)
Executive Equity
Rights – From 2019
Executive PR Plan –
CEO – 2022
Executive PR Plan –
2022
Employee PR Plan –
2022
Executive PR Plan –
former CEO – From
2019 to 2021
Executive PR Plan –
From 2019 to 2021
Employee Deferred
Share Plan –
From 2019
Employee Deferred
Share Rights Plan –
From 2019
OneIress Equity
award/UK Share
Incentive Plan
Eligible participants
receive equity rights
at no cost
Individual
performance criteria
Eligible participants
receive
performance rights
at no cost
Absolute total
shareholder return
(ATSR) gateway
and 3 additional
performance
measures
2 years vesting
followed by 2 year
holding lock
3 years followed by
1 year holding lock;
and
4 years followed by
1 year holding lock
4 years followed by
1 year holding lock
Eligible participants
receive
performance rights
at no cost
Absolute total
shareholder return
(ATSR) against
hurdles
3 years
Individual
performance criteria
Nil
3 years (vesting
in equal portions
annually)
3 years (vesting
in equal portions
annually)
3 years
Eligible participants
receive deferred
shares at no cost
Eligible participants
receive deferred
rights at no cost
Eligible participants
are invited to
acquire Iress
shares, Iress
matches this
participation to
a set value
No but dividend
equivalent “top‑up”
on vesting
Generally forfeited
(Board discretion
may apply)
No
No
Yes
Yes
Yes
Generally forfeited
(Board discretion
may apply)
Generally forfeited
(Board discretion
may apply)
Generally forfeited
(Board discretion
may apply)
Matched shares are
forfeited under the
UK Share Incentive
Plan and released
under the General
Employee Share
Plan and OneIress
Equity Plan
As at 31 December 2023, the total unvested shares in the OneIress Equity award were 122,649 shares (2022: 95,214) and 948 unvested
share rights (2022: 297).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements
96
97
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
1.5 Share-based payments (continued)
(b) Grant date fair value
The grant date fair value of the employee deferred share plans reflects the market price of shares on the grant date given that the awards
provide dividends to recipients of grants throughout the vesting period.
The grant date fair value of Executive Plans are independently determined using a Monte Carlo simulation option pricing model.
This uses standard option pricing inputs such as the underlying share price, exercise price, expected dividends, expected risk free
rates and expected share price volatility.
Key inputs include:
Grant date fair value
Key inputs in determining
grant date fair value(1)
Model used
Risk free rate
Share price volatility
Dividend yield
Equity rights
Risk free rate
Share price volatility
Dividend yield
Performance rights
Risk free rate
Share price volatility
Dividend yield
Options
Risk free rate
Share price volatility
Dividend yield
Executive
Equity Rights
Executive
Performance
Rights
Executive
Options
Employee
Performance
Rights
Black Scholes
1.095%–3.26%
25.00%–30.00%
Monte Carlo
2.99%–3.84%
25.00%–27.50%
Black Scholes
3.49%–3.53%
27.50%
Monte Carlo
3.10%–3.39%
25.00%–27.50%
0.00%
4.25%–5.00%
4.00%
4.00%–5.00%
CEO
Former CEO
Executive
3.26%
30.00%
0.00%
0.07%–3.04%
25.00%
0.00%
CEO
Former CEO
Executive
3.35%–3.39%
27.50%
4.00%
2.99%–3.10%
25.00%
2.99%–3.84%
25.00%–27.50%
5.00%
4.25%–5.00%
MSO
3.39%
27.50%
4.00%
1.10%
25.00%
0.00%
Gilligan
3.37%
27.50%
4.25%
CEO
3.49%–3.53%
27.50%
4.00%
(1) The range of inputs shown represent the low and high points of the inputs used in valuing the various share based payment grants made by Iress during the
2022 and 2023 financial years. Refer to the tables in Note 1.5(c) for the grant dates for each grant made.
As the vesting conditions of the Employee Deferred Share Plan grants are not subject to performance hurdles and participants receive
dividends during the vesting period, the grant date fair value of the award approximates the share price at the date of grant.
(c) Details of shares or rights on issue and amounts expensed during the financial year:
Number of shares
At grant date
Expenses
Type
Grant date
Vesting date
Executive Plans – CEO
2022 Grant – ER
2022 Grant – PR
2022 Grant – PR
2022 Grant – Options
2022 Grant – Options
09 May 2022 28 Feb 2024
09 May 2022 31 Mar 2025
09 May 2022 31 Mar 2026
20 Feb 2026
03 Oct 2022
22 Feb 2027
03 Oct 2022
Executive Plans – Former CEO
2020 Grant – PR
2021 Grant – ER
2021 Grant – PR
2022 Grant – ER
08 May 2020 28 Feb 2023
28 Feb 2023
07 May 2021
07 May 2021
28 Feb 2024
09 May 2022 28 Feb 2024
Executive Plans – Non-CEO
2020 Grant – PR
2021 Grant – ER
2021 Grant – PR
2022 Grant – ER
2022 Grant – PR
2022 Grant – PR
2023 Grant – PR
2023 Grant – PR
2023 Grant – PR
28 Feb 2020 28 Feb 2023
28 Feb 2023
26 Feb 2021
28 Feb 2024
26 Feb 2021
28 Feb 2024
28 Feb 2022
31 Mar 2025
28 Feb 2022
31 Mar 2026
28 Feb 2022
31 Mar 2026
04 Sep 2023
31 Mar 2026
04 Sep 2023
31 Mar 2026
04 Sep 2023
At
1 Jan
2023
13,865
370,910
370,910
666,248
591,582
2,013,515
80,916
97,089
102,863
79,592
360,460
157,654
262,909
211,873
141,161
835,421
835,423
–
–
–
Granted Forfeited
Vested
At
31 Dec
2023
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
13,865
370,910
370,910
666,248
591,582
– 2,013,515
(80,916)
–
(31,888)
–
–
(97,089)
(70,975)
(79,592)
(112,804)
(247,656)
–
–
–
–
–
–
32,134
–
–
–
–
185,997
185,997
186,004
(157,654)
–
(7,437)
–
(222,175)
(307,345)
–
–
–
–
(295,043)
(162,434)
(110,529)
(431,958)
(346,789)
–
–
–
–
–
42,002
30,632
181,288
181,289
185,997
185,997
186,004
2,444,441
590,132 (694,611) (1,346,753)
993,209
Employee PR Plan
2022 Grant – PR
2022 Grant – PR
09 May 2022 31 Mar 2026
31 Mar 2026
03 Oct 2022
1,739,523
449,348
–
–
(714,170)
–
(57,424)
–
967,929
449,348
2023 Grant – PR
31 May 2023
31 Mar 2026
–
41,091
–
–
41,091
2,188,871
41,091
(714,170)
(57,424) 1,458,368
Share
price
$
10.36
10.36
10.36
10.36
10.36
10.92
10.01
10.01
10.36
11.86
9.19
9.19
10.36
10.36
10.36
10.36
10.36
10.36
10.36
11.67
10.95
Fair
value
$
2023
$’000
8.25
1.96
2.03
0.61
0.73
2.61
9.01
3.19
9.54
3.81
8.27
2.56
9.32
3.16
2.84
0.33
0.33
0.33
2.85
2.03
3.02
(57)
(233)
(183)
(120)
(98)
(691)
–
–
–
–
–
(27)
(123)
(300)
(741)
(1,996)
(1,709)
(15)
(15)
(15)
(4,941)
(591)
(261)
(26)
(878)
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 98
99
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
1.5 Share-based payments (continued)
(c) Details of shares or rights on issue and amounts expensed during the financial year (continued):
Number of shares
At grant date
Expenses
Type
Grant date
Vesting date
Employee Deferred Share Plan
2020 Grant – EAG
2021 Grant – EAG
2021 Grant – EAG
2022 Grant – EAG
2022 Grant – EAG
2022 Grant – EAG
2023 Grant – EAG
2023 Grant – EAG
2023 Grant – EAG
28 Feb 2020 28 Feb 2023
28 Feb 2023
26 Feb 2021
26 Feb 2021
28 Feb 2024
28 Feb 2022 28 Feb 2023
28 Feb 2022 28 Feb 2024
28 Feb 2022 28 Feb 2025
28 Feb 2023 28 Feb 2024
28 Feb 2023 28 Feb 2025
28 Feb 2023 27 Feb 2026
Employee Deferred Share Rights Plan
2020 Grant – EAG
2021 Grant – EAG
2021 Grant – EAG
2022 Grant – EAG
2022 Grant – EAG
2022 Grant – EAG
2023 Grant – EAG
2023 Grant – EAG
2023 Grant – EAG
28 Feb 2020 28 Feb 2023
26 Feb 2021
28 Feb 2023
28 Feb 2024
26 Feb 2021
28 Feb 2022 28 Feb 2023
28 Feb 2022 28 Feb 2024
28 Feb 2022 28 Feb 2025
28 Feb 2023 28 Feb 2024
28 Feb 2023 28 Feb 2025
28 Feb 2023 27 Feb 2026
At
1 Jan
2022
272,351
408,915
408,918
473,892
473,892
474,859
–
–
–
Granted Forfeited
Vested
At
31 Dec
2022
Share
price
$
(1,002)
–
(2,267)
–
(29,225)
–
(3,472)
–
(47,517)
706
(64,283)
471
(75,675)
606,753
606,360
(96,902)
606,750 (104,022)
(271,349)
(406,648)
(39,573)
(470,420)
(51,161)
(34,338)
(43,284)
(21,664)
(14,487)
–
–
340,120
–
375,920
376,709
487,794
487,794
488,241
2,512,827 1,821,040 (424,365) (1,352,924) 2,556,578
9,493
16,145
16,181
17,934
17,934
17,967
–
–
–
–
–
–
–
–
–
27,115
27,115
27,120
–
–
(378)
–
(172)
(326)
(527)
(743)
(816)
(9,493)
(16,145)
(1,335)
(17,934)
(457)
(306)
(433)
(217)
(145)
–
–
14,468
–
17,305
17,335
26,155
26,155
26,159
95,654 81,350
(2,962)
(46,465)
127,577
11.86
9.19
9.19
10.36
10.36
10.36
9.31
9.31
9.31
11.86
9.19
9.19
10.36
10.36
10.36
9.31
9.31
9.31
Fair
value
$
11.86
9.19
9.19
10.36
10.36
10.36
9.31
9.31
9.31
11.86
9.19
9.19
10.36
10.36
10.36
9.31
9.31
9.31
2023
$’000
(162)
(282)
(1,017)
(758)
(2,052)
(1,372)
(4,210)
(2,103)
(1,405)
(13,361)
(6)
(12)
(47)
(30)
(92)
(61)
(208)
(104)
(69)
(629)
Total
9,615,768 2,533,613 (1,948,912) (3,051,222) 7,149,247
(20,500)
The weighted average remaining contractual life of the above grants is 1.7 years (2022: 1.9 years).
1.6 Other expenses
(a) The (loss)/profit before income tax includes the following general office and administration items:
Irrecoverable trade debtors written off
Credit loss allowances released to profit and loss
Business acquisition & divestments, integration and restructuring expenses
Office related expenses and business insurance premiums
Rental expense relating to short‑term or low‑value leases
(Recognition)/release of onerous contracts
Release/(recognition) of provision for restructure
Other operating expenses
Other non operating income
Realised and unrealised foreign exchange losses
Total general office and administration
Notes
2.3(e)
2.7(b)
2023
$’000
(923)
662
(4,100)
(12,038)
(186)
(514)
169
(10,051)
393
(1,287)
(27,875)
2022
$’000
(361)
331
(9,810)
(12,486)
(175)
504
(92)
(7,127)
673
(851)
(29,394)
(b) Remuneration of the auditors, Ernst & Young (2022: Deloitte Touche Tohmatsu), for services rendered are as follows:
Auditors of the parent entity
Fees for auditing the statutory financial report of the parent covering the group and auditing the statutory
financial reports of any controlled entities
Fees for assurance services that are required by legislation to be provided by the auditor
Fees for other assurance and agreed‑upon‑procedures services under other legislation or contractual
arrangements where there is discretion as to whether the service is provided by the auditor
Fees for other non‑audit services(1)
Total audit fees to the parent entity
Overseas member firms of the parent entity auditor
Fees for audit or review of the financial report of any controlled entities
Total audit fees to overseas member firms of the parent entity
Total auditor’s remuneration of parent entity auditors
(1) Other non‑audit services comprise tax compliance, workforce mobility and people services.
2023
$
2022
$
(844,625)
(58,050)
(470,100)
(329,588)
(655,367)
(56,517)
(504,527)
(86,400)
(1,702,363)
(1,302,811)
(382,384)
(382,384)
(387,644)
(387,644)
(2,084,747)
(1,690,455)
1.7 Amortisation, depreciation, derecognition and impairment
Amortisation and depreciation are calculated on a straight line basis over the expected useful life of the respective assets.
Amortisation of intangible assets
Depreciation of plant and equipment
Depreciation of right‑of‑use assets
Impairment of goodwill(1)
Losses on the derecognition of intangible assets(2)
Losses on the disposal of plant and equipment
Gains on the disposal of right‑of‑use assets
Gains on the fair value of lease right‑of‑use‑asset and liabilities
Gains/(losses) on the disposal of Investment
Notes
2.1(a)
2.2(a)
2.3(c)
2.1(a)
2.1(a)
2.2(a)
2.3(e)
2.3(e)
2023
$’000
(27,045)
(10,001)
(13,958)
(130,384)
(13,329)
(416)
617
1,053
71
2022
$’000
(16,084)
(10,345)
(14,227)
–
(2,265)
(523)
72
–
(24)
Total amortisation, depreciation, derecognition and impairment expense
(193,392)
(43,396)
(1) Impairment of goodwill relating to the UK CGU (Refer to Note 2.1).
(2) Derecognition of capitalised internally developed computer software and acquired other intangible assets (Refer to Note 2.1).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 100
101
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
1.8 Notes to the Consolidated Statement of Cash Flows
(a) Cash and cash equivalents comprise cash at bank held in the following currencies, translated to Australian dollars:
Australian Dollar
Euro
British Pound
United States Dollar
South African Rand
Other currencies
Total cash and cash equivalents
2023
$’000
18,823
3,185
5,808
5,448
6,424
4,193
43,881
(b) Reconciliation of profit attributable to members of the parent entity to cash generated from operating activities:
(Loss)/profit after income tax expense
Adjustment for non-cash and non-operating cash flow items
Depreciation and amortisation
Net credit loss allowances reversed on trade receivables
Net provision reversed on employee benefits
Net provision reversed on the onerous contracts
Net provision (reversed)/recognised on other provisions
Share‑based payment expense
Foreign exchanges losses
Amortisation of financing charges
Gains on disposal of subsidiary
Losses on derecognition of intangible assets
Losses on disposal of plant and equipment
Gains on derecognition of right‑of‑use‑assets and lease liabilities
Gains on the fair value recognition of the right‑of‑use‑assets and lease liabilities
Impairment of goodwill
Interest recognised in relation to finance lease liability
Cash settled equity shares
Capitalisation of borrowing costs
Interest income
Interest expense
Change in working capital
Decrease/(increase) in receivables and other assets
Increase in payables and other liabilities
Increase in provision for employee benefits
Decrease in tax balances
Net cash inflow generated from operating activities
Notes
1.7
2.5(c)
2.7(b)
2.7(b)
1.5(c)
3.1(d)
4.2
2.1(a)
2.2(a)
2.3(e)
2.3(e)
1.7
2023
$’000
(137,484)
51,004
(662)
(297)
(1,681)
(169)
20,500
1,287
518
(17,592)
13,329
416
(617)
(1,053)
130,384
–
(645)
–
(11)
(39)
138
5,462
(535)
1,412
63,665
2022
$’000
35,987
1,434
9,628
3,150
6,528
6,626
63,353
2022
$’000
52,672
40,656
(331)
(1,300)
(504)
92
18,747
851
753
–
2,265
523
(72)
–
–
14
–
(213)
25
(811)
(10,237)
7,989
–
1,460
112,579
Section 2. Core assets and working capital
2.1 Intangible assets
Intangible assets for the Group comprise goodwill arising from business combinations, customer relationships, computer software
and other intangibles (mainly acquired databases and brands). Intangible assets with finite lives are carried at cost, less accumulated
amortisation, and accumulated impairment losses.
Goodwill recognised arose from business combinations where the fair value of the consideration paid exceeded the fair value of the
assets acquired. Goodwill is considered to have an indefinite life and is not amortised as it represents the synergistic benefits of
bringing the businesses together.
Customer relationships, a proportion of computer software and other intangibles were acquired as part of business combinations.
These intangible assets are initially recognised at their fair value at the acquisition date. The remainder of computer software was
either separately acquired or developed internally, and recognised at cost. Subsequent to initial recognition, intangible assets other
than goodwill and work‑in‑progress are amortised over the expected useful lives noted below.
Internally generated intangible assets are recognised where the cost of actual development can be reliably measured and clearly
distinguished from research and ongoing operating and maintenance activities. These costs that are directly associated with the
development of software are recognised where the following criteria are met:
• It is technically feasible to complete the software product so that it is available for use
• Management intends to complete the software product and use or licence it to customers, and there is adequate technical, financial,
and other resources to complete the development
• There is an ability to use or licence the software product and it can be demonstrated how the product will generate future
economic benefits
• The expenditure attributable to the software product during its development can be reliably measured.
The costs remain in work‑in‑progress during the development phase and are transferred to computer software when products are
considered ready for their intended use. A significant percentage of software development within the Group occurs contemporaneously
with the research phase and ongoing operating and maintenance activities in supporting core customer systems. As a result, the
separation of the cost of development can be imprecise and difficult to reliably measure. Accordingly, where the expenditure related
to the development activity cannot be reliably measured, the Group expends the amounts in the period they are incurred.
During the year, $14.1 million (2022: $19.9 million) of costs have been capitalised relating to internally generated computer software assets.
(a) Carrying value of intangible assets:
As at 31 December 2022
Cost
Accumulated amortisation
Net carrying value
Movement for the year
Balance at 1 January 2022
Reclassified between asset classes(1)
Separately acquired
Internally generated development costs
Derecognition
Amortisation
Foreign currency translation
Balance at 31 December 2022
Expected useful life (years)
Goodwill
$’000
603,738
–
603,738
622,481
–
–
–
–
–
(18,743)
603,738
Indefinite
Customer
relationships
$’000
Computer
software
$’000
Other
intangibles
$’000
Work-in-
progress
$’000
51,129
(27,673)
23,456
28,603
–
–
–
–
(4,877)
(270)
23,456
5 to 15
125,075
(57,295)
67,780
74,464
5,142
3
–
(645)
(11,058)
(126)
67,780
2 to 20
4,802
(614)
4,188
1,723
2,615
–
–
–
(149)
(1)
4,188
2 to 20
Total
$’000
810,580
(85,582)
724,998
742,615
–
3
19,900
(2,265)
(16,084)
(19,171)
25,836
–
25,836
15,344
(7,757)
–
19,900
(1,620)
–
(31)
25,836
724,998
Nil
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 102
103
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.1 Intangible assets (continued)
(a) Carrying value of intangible assets (continued):
As at 31 December 2023
Cost
Accumulated amortisation
Net carrying value
Movement for the year
Balance at 1 January 2023
Disposal of subsidiary
Reclassified to assets held‑for‑sale
Reclassified between asset classes(1)
Internally generated development costs
Impairment of goodwill
Derecognition
Amortisation
Foreign currency translation
Balance at 31 December 2023
Expected useful life (years)
Goodwill
$’000
481,050
–
481,050
603,738
(11,886)
(1,572)
–
–
(130,384)
–
–
21,154
481,050
Indefinite
Customer
relationships
$’000
Computer
software
$’000
Other
intangibles
$’000
Work-in-
progress
$’000
46,620
(34,117)
12,503
23,456
–
–
–
–
–
–
(11,174)
221
12,503
3 to 10
102,716
(64,046)
38,670
67,780
(11,745)
(6,581)
7,774
–
–
(3,170)
(15,489)
101
38,670
1 to 10
1,540
–
1,540
4,188
(2,796)
–
530
–
–
–
(382)
–
1,540
1 to 10
16,943
–
16,943
25,836
(4,747)
–
(8,304)
14,059
–
(10,159)
–
258
16,943
Nil
Total
$’000
648,869
(98,163)
550,706
724,998
(31,174)
(8,153)
–
14,059
(130,384)
(13,329)
(27,045)
21,734
550,706
(1) Transfer of capitalised internally generated software when products were considered ready for their intended use.
(b) Review of expected useful life for finite life intangible assets
Intangible assets with finite life are reviewed for expected useful life annually, or whenever events or changes in circumstances
indicate that the expected useful life needs to be adjusted.
A review of the Group’s intangible assets during the year ended 31 December 2023 resulted in the derecognition of capitalised
internally‑developed and acquired computer software assets with a carrying value of $13.3 million (2022: $2.3 million) as these were
no longer expected to be utilised in the Group’s operations. In addition, the Group has re‑estimated the useful lives of certain computer
software assets and customer relationship intangibles to align with updated strategies and expectations for the related business areas,
resulting in additional amortisation expense of approximately $13.0 million being recognised in the 2023 financial year (as compared to
the amortisation expense that would have been recognised if calculated using previous useful life estimates).
(c) Impairment testing for goodwill
Goodwill is tested for impairment annually, or more frequently when indicators of impairment are identified. In testing for impairment,
the carrying amount of each Cash Generating Unit (CGU) is compared against the recoverable amount.
Group restructure and reassessment of CGUs from 1 July 2023
In April 2023, the Group announced its intention to implement a restructure of its operating segments for management reporting
purposes, effective from 1 July 2023. The revised segments comprise APAC Wealth Management (also a CGU), APAC Trading & Global
Market Data (comprising the Trading & Market Data and International Market Data CGUs), Superannuation (also a CGU), Managed
Portfolio – UK (comprising the UK and UK Mortgages CGUs) and Managed Portfolio – Other (comprising the South Africa, Canada,
Managed Fund Administration (MFA) and Platforms CGUs). The cash flow forecasts for each CGU were revised in line with the
strategy review.
The separation of the MFA and Platforms CGUs from the APAC Wealth Management operating segment to the Managed Portfolio –
Other segment resulted in the attribution of goodwill to MFA of $11.9 million and to Platforms of $1.6 million, calculated on a relative
fair value basis, and a reduction in the remaining carrying value of the Wealth Management CGU by these amounts. The goodwill
attributable to the MFA CGU of $11.9 million has subsequently been derecognised by the Group as part of the sale of the subsidiary
completed on 1 October 2023 (refer to Note 4.2). The goodwill attributable to the Platforms CGU of $1.6 million has been recognised by
the Group within assets held‑for‑sale at 31 December 2023 (refer to Note 4.3).
Impairment assessment at 30 June 2023
The revision of cash flow forecasts at 30 June 2023 as a result of the Group restructure was assessed as an indicator of impairment.
Accordingly, the Group undertook an impairment assessment at 30 June 2023 on the pre‑restructure CGUs. This assessment resulted in
impairment of goodwill within the UK CGU of $130.4 million (£70.1 million) which reduced the carrying value of the UK CGU to its assessed
recoverable amount, determined utilising a fair value less costs of disposal approach. The fair value less costs of disposal determined
was calculated using discounted cash flow (DCF) projections over five years and was considered to be Level 3 in the fair value hierarchy.
Key inputs utilised in determining the fair value less costs of disposal in the UK CGU at 30 June 2023 were a revenue cumulative annual
growth rate for the five year forecast period of 7.1%, a post‑tax discount rate of 9.7% and a long‑term growth rate of 2.0%.
Impairment assessment at 31 December 2023
Each of the post‑restructure CGUs was tested for impairment at 31 December 2023. The recoverable amount of all CGUs was
determined as fair value less cost of disposal, using a DCF approach. The fair value less costs of disposal DCF approach:
• Utilises post‑tax cash flow projections based on the most recent five‑year financial plan. These cash flow projections include
estimated benefits to be delivered from ongoing post‑restructure transformation activities taking place over the forecast period.
• Is discounted at an appropriate after‑tax discount rate, taking into account an assessed weighted average cost of capital adjusted for
any risks specific to the CGU.
• Applies a terminal growth rate to year 5 earnings. Terminal growth rates are based on estimates of long term inflation and nominal
GDP growth in the country in which the CGU primarily operates.
• Deducts estimated disposal costs from the recoverable amount determined.
The fair value less costs of disposal determined is compared to the carrying amount of the CGU which includes directly attributable
assets of each CGU and an allocation of corporate assets. The valuation is considered to be Level 3 in the fair value hierarchy due to
unobservable inputs used in the valuation.
Allocation of goodwill to each relevant cash‑generating unit and assumptions applied in calculating the recoverable amounts of the
goodwill in testing for impairment:
Cash generating unit
APAC Wealth Management
APAC Trading & Market Data
International Market Data
Superannuation(1)
UK
UK Mortgages
South Africa
Canada
Total goodwill
Allocated Goodwill
Post-Tax Discount Rates
Long Term Growth Rates
2023
$’000
117,264
43,662
5,458
–
204,168
82,402
12,854
15,242
481,050
2022
$’000
130,864
42,727
5,293
–
318,106
78,171
13,534
15,043
603,738
2023
%
9.4
9.4
9.0
9.4
9.7
9.7
17.9
9.4
2022
%
9.2
9.2
8.4
–
9.5
9.0
18.1
9.8
2023
%
2022
%
2.5
2.5
2.0
2.5
2.0
2.0
5.0
2.0
3.0
3.0
2.5
–
3.0
3.0
5.0
2.5
(1) Not tested for impairment in the comparative period.
Significant estimates made
The cash flow projections used in the impairment test are made with consideration to other available information and estimations
including actual performance to date, discount rates, assumptions around future performance and expected revenue and cost growth.
The Group considered the impact of climate change on the cash flow projections included in the value‑in‑use models and concluded
that based on current expectations, facts and circumstances, there were no significant impacts to the projected cash flows.
Sensitivity to changes in assumptions
Management is of the view that reasonably possible changes in the key assumptions, such as an increase to the discount rate of 1%
or a reduction in cash flow of 10%, would not cause the recoverable amount for the APAC Wealth Management, APAC Trading & Market
Data, International Market Data, UK Mortgages, South Africa or Canada CGUs to fall short of their respective carrying amounts as at
31 December 2023. However, an increase to the discount rate of 1% or a reduction in cash flow of 10% would cause the recoverable
amount for the UK CGU and Superannuation CGU to fall short of their respective carrying amounts at 31 December 2023.
The recoverable amount of the UK CGU at 31 December 2023 is $226.8 million and current headroom is $6.3 million (30 June 2023:
$Nil headroom). For the estimated recoverable amount of the goodwill attributable to the UK CGU to be equal to its carrying amount, the
post‑tax discount rate would have to increase to 9.88%, or the projected cash flows would need to reduce by 1.39%.
The current headroom for the Superannuation CGU is $1.3 million (2022: $42.4 million). For the estimated recoverable amount of the
Superannuation CGU to be equal to its carrying amount, the post‑tax discount rate would have to increase to 9.51%, or the projected
cash flows would need to reduce by 0.16%.
Apart from the impairment of goodwill in relation to the UK CGU of $130.4 million at 30 June 2023, there has been no further impairment
of goodwill during the year ended 31 December 2023. The carrying values of goodwill in relation to CGUs based outside of Australia
have been translated to Australian dollars using the 31 December spot exchange rates for the respective foreign currencies.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 104
105
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.2 Plant and equipment
Plant and equipment are carried at cost, less accumulated depreciation, and any impairment losses.
The estimated useful lives, residual values, and depreciation method are reviewed at the end of each annual reporting period.
2.3 Leases
(a) Summary of leasing amounts recognised in the Statement of Profit or Loss and Statement of Cash Flows:
(i) Contractual lease payments and amounts recognised in the Statement of Profit or Loss
The depreciation charge for each period is recognised in profit or loss.
(a) Carrying value of plant and equipment
As at 31 December 2022
Cost
Accumulated depreciation
Net carrying value
Movement for the year
Balance at 1 January 2022
Separately acquired
Derecognition
Depreciation
Foreign currency translation
Balance at 31 December 2022
Expected useful life (years)
As at 31 December 2023
Cost
Accumulated depreciation
Net carrying value
Movement for the year
Balance at 1 January 2023
Disposal of subsidiary
Reclassified between asset classes(1)
Separately acquired
Derecognition
Depreciation
Foreign currency translation
Balance at 31 December 2023
Expected useful life (years)
Leasehold
improvement
$’000
Furniture
& fittings
$’000
Office
equipment
$’000
Computer
equipment
$’000
Work-in-
progress
$’000
17,870
(8,413)
9,457
11,527
948
(438)
(2,377)
(203)
9,457
3 to 10
14,761
(9,438)
5,323
6,954
204
(126)
(1,612)
(97)
5,323
3 to 10
1,875
(1,412)
463
618
36
(12)
(180)
1
463
3 to 5
54,353
(41,077)
13,276
12,969
6,518
–
(6,176)
(35)
13,276
3 to 5
–
–
–
–
–
–
–
–
–
Nil
Leasehold
improvement
$’000
Furniture
& fittings
$’000
Office
equipment
$’000
Computer
equipment
$’000
Work-in-
progress
$’000
18,224
(10,540)
7,684
9,457
–
592
115
(278)
(2,291)
89
7,684
3 to 10
14,622
(10,780)
3,842
5,323
–
–
2
(125)
(1,413)
55
3,842
3 to 10
1,874
(1,550)
324
463
(1)
–
5
–
(143)
–
324
3 to 5
58,807
(46,793)
12,014
13,276
(6)
–
4,655
(12)
(6,154)
255
12,014
3 to 8
–
–
–
–
–
(592)
592
–
–
–
–
Nil
Total
$’000
88,859
(60,340)
28,519
32,068
7,706
(576)
(10,345)
(334)
28,519
Total
$’000
93,527
(69,663)
23,864
28,519
(7)
–
5,369
(415)
(10,001)
399
23,864
(1) Work‑in‑progress assets are transferred to plant and equipment asset classes as they are brought into use.
(b) Plant and equipment pledged as security
The Group does not have any plant and equipment pledged to secure borrowings of the Group.
Contractual rental payments
Depreciation expense on right‑of‑use assets
Interest expense on lease liabilities
(ii) Total cash flow relating to leases recognised in the Statement of Cash Flows
Settlement of lease liabilities
Interest expense on lease liabilities
Total cash outflows for leases
Notes
2.3(a)(ii)
2.3(c)
2.3(e)
2023
$’000
(19,028)
(13,958)
(1,924)
2023
$’000
(17,104)
(1,924)
(19,028)
2022
$’000
(17,592)
(14,227)
(2,323)
2022
$’000
(15,283)
(2,309)
(17,592)
(b) Iress Group lease portfolio
The Group leases real estate in the ordinary course of its business. The Group’s real estate leases comprise office building leases in the
countries the Group operates in.
The Group’s regional lease portfolio:
Region
Australia
Lease characteristic features
The Group leases office buildings in a number of Australian cities, with the most significant being the head office in Melbourne
and an office in Sydney. The non‑cancellable period of the leases range from two to twelve years with variable options to
extend the lease terms. The lease payments are adjusted every year, based on contractual fixed percentage increases, and
in certain instances, additionally increased by the prevailing consumer price index (CPI) at the lease review date.
South Africa
The Group leases office buildings in South Africa. The non‑cancellable period of these leases range from two to seven years
with options to extend the lease terms up to five years. The lease payments are adjusted every year by a fixed percentage
increase at the lease review date.
United Kingdom The Group leases office buildings in the UK. The non‑cancellable period of these leases range from five to ten years.
The lease payments are fixed with no increases over the lease terms.
Other
The Group leases other office buildings in other countries. The non‑cancellable period of these leases range from three
to ten years. The lease payments are fixed with no increases over the lease terms.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 106
107
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.3 Leases (continued)
(b) Iress Group lease portfolio (continued)
(i) Group as a lessee
Right-of-use asset
The Group recognises a right‑of‑use asset and a lease liability at the lease commencement date. The right‑of‑use asset is initially
measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset —
or to restore the underlying asset or the site on which it is located—less any lease incentives received.
The right‑of‑use asset is separately disclosed in the Consolidated Statement of Financial Position.
The right‑of‑use asset is subsequently depreciated using the straight‑line method from the commencement date to either the earlier
of the end of the useful life of the right‑of‑use asset, or the end of the lease term. The estimated useful lives of right‑of‑use assets are
determined on the same basis as those of plant and equipment. In addition, the right‑of‑use asset is periodically reduced by impairment
losses, if any, and adjusted for certain remeasurements of the lease liability.
Lease liability
The lease liability is initially measured at the present value of the lease payments not paid at the commencement date, discounted
using the interest rate implicit in the lease, or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.
Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group’s average incremental borrowing rate used is 3.79% (2022: 4.23%).
Lease payments included in the measurement of the lease liability include:
• fixed payments, including in‑substance fixed payments less any lease incentives receivable
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date
• amounts expected to be payable under a residual value guarantee
• the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal
period if the Group is reasonably certain to exercise an extension option
• payment of penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.
The lease liability is separately disclosed in the Consolidated Statement of Financial Position. The lease liability is measured at
amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from
a change in an index or rate, if there is a change in the Group’s estimate of the expected payable amount under a residual value
guarantee, or, if the Group changes its assessment of whether it will exercise a purchase, extension, or termination option.
When the lease liability is remeasured in this way, either a corresponding adjustment is made to the carrying amount of the
right‑of‑use asset, or, it is recorded in profit or loss if the carrying amount of the right‑of‑use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right‑of‑use assets and lease liabilities for short‑term leases of office and information
technology equipment with a lease term of 12 months or less, or for leases of low‑value assets. The Group recognises the lease
payments associated with these leases as an expense on a straight‑line basis, over the lease term.
(ii) Group as a lessor
When the Group acts as a lessor—generally when it subleases property on which it has entered a head lease as a lessee—it determines
at the sublease inception whether each sublease is a finance lease or an operating lease. To classify each lease, the Group makes an
overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying
asset. If this is the case, then the lease is a finance lease. If not, then it is accounted for as an operating lease. As part of this assessment,
the Group considers certain indicators, such as whether the lease is for the major part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The Group
assesses the lease classification of a sublease with reference to the right‑of‑use asset arising from the head lease, not with reference
to the underlying asset. If a head lease is a short‑term lease to which the Group applies the exemption described above, then
it classifies the sublease as an operating lease. If an arrangement contains a lease and non‑lease component, the Group applies
AASB 15 Revenue from Contracts with Customers to allocate the consideration in the contract.
The Group recognises lease payments received under operating leases as income on a straight‑line basis over the lease term as part
of non‑operating income.
(c) Carrying value of right-of-use assets
The Group’s right‑of‑use assets comprise real estate. Right‑of‑use assets have finite lives and are carried at cost less
accumulated depreciation.
Carrying value of right-of-use assets:
Cost
Accumulated depreciation
Net carrying value
Movement for the year
Balance at beginning of the year
New leases entered into contract
Disposal of right‑of use assets for early termination
Fair value adjustments for modified leases
Depreciation
Foreign currency translation
Balance at end of the year
Expected useful life (years)
(d) Lease liabilities
(i) Lease liabilities included in the Statement of Financial Position at the end of the period:
Current
Non‑current
Total
2023
$’000
111,159
(60,878)
50,281
60,638
3,584
(1,700)
839
(13,958)
878
50,281
1 to 12
2022
$’000
119,233
(58,595)
60,638
77,737
834
(2,744)
366
(14,227)
(1,328)
60,638
2 to 12
2023
$’000
(14,141)
(45,254)
(59,395)
2022
$’000
(15,447)
(58,880)
(74,327)
The Group’s liquidity risk with regard to its lease liabilities is managed by the inclusion of lease liability cash flows in the cash flow
forecasts regularly monitored by the Group in line with the Group’s treasury policy.
(ii) Reconciliation of the movement of the lease liabilities:
Balance at beginning of the year
Lease liabilities raised from the negotiation of new lease contracts
Lease liabilities reversed from early termination of lease contracts
Lease liabilities reversed during the year
Lease liabilities reversed/(raised) from changes in subsequent lease payments
Lease liabilities raised due to the timing of interest payment
Settlement of lease liabilities
Foreign currency translation
2023
$’000
(74,327)
(3,581)
1,921
396
214
–
17,104
(1,122)
2022
$’000
(92,854)
(834)
2,816
–
(366)
(14)
15,283
1,642
Balance at end of the year
(59,395)
(74,327)
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 108
109
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.3 Leases (continued)
(d) Lease liabilities (continued)
(iii) Maturity analysis – contractual undiscounted cash flows:
Less than one year
More than one year and not more than five years
More than five years
Total undiscounted lease liabilities at the end of the period
(e) Amounts recognised in the Statement of Profit or Loss and Other Comprehensive Income
Depreciation expense on right‑of‑use assets
Interest expense on lease liabilities
Expenses relating to short term or low value assets leases
Gain on the fair value recognition of the right‑of‑use‑assets and lease liabilities as a result
of incremental lease payments
Gain on the de‑recognition of right‑of‑use assets and lease liabilities
Income from the sub‑leasing of right‑of‑use assets
(f) Operating lease arrangements
Operating leases, in which the Group is the lessor, relate to sub‑leased office buildings.
2023
$’000
15,901
41,703
5,295
62,899
2023
$’000
(13,958)
(1,924)
(186)
1,053
617
236
2022
$’000
17,687
52,872
9,722
80,281
2022
$’000
(14,227)
(2,323)
(175)
–
72
213
Notes
1.7
3.1(d)
1.6(a)
During the year, the Canadian office entered into a sublease arrangement for which the Group is the lessee under a head
lease arrangement.
The cash outflows relating to the head leases on these buildings are included in the amounts disclosed in Note 2.3(e) above.
2.4 Derivative financial instruments
(a) Derivative financial instruments
The Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including
foreign exchange forward contracts.
Derivatives are recognised initially at fair value at the date a derivative contract is entered into and are subsequently remeasured
to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature
of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised
as a financial liability. Derivatives are not offset in the financial statements unless the Group has both a legally enforceable right and
intention to offset. A derivative is presented as a non‑current asset or a non‑current liability if the remaining maturity of the instrument
is more than 12 months and it is not due to be realised or settled within 12 months. Other derivatives are presented as current assets
or current liabilities.
(b) Hedge accounting
The Group designates certain derivatives as hedging instruments in respect of foreign currency risk and interest rate risk in fair value
hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of foreign exchange risk on firm commitments
are accounted for as cash flow hedges.
At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged
item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at
the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is effective in offsetting
changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet
all of the following hedge effectiveness requirements:
• There is an economic relationship between the hedged item and the hedging instrument.
• The effect of credit risk does not dominate the value changes that result from that economic relationship.
• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually
hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management
objective for that designated hedging relationship remains the same, the Group adjusts the hedge ratio of the hedging relationship (i.e.
rebalances the hedge) so that it meets the qualifying criteria again. The Group designates the full change in the fair value of a forward
contract (i.e. including the forward elements) as the hedging instrument for all of its hedging relationships involving forward contracts.
(c) Cash flow hedges
The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated and
qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging
reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the
ineffective portion is recognised immediately in profit or loss, and is included in the ‘other gains and losses’ line item.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the
periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. However, when the hedged
forecast transaction results in the recognition of a non‑financial asset or a non‑financial liability, the gains and losses previously
recognised in other comprehensive income and accumulated in equity are removed from equity and included in the initial
measurement of the cost of the non‑financial asset or non‑financial liability. This transfer does not affect other comprehensive
income. Furthermore, if the Group expects that some or all of the loss accumulated in the cash flow hedging reserve will not be
recovered in the future, that amount is immediately reclassified to profit or loss.
The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria
(after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised.
The discontinuation is accounted for prospectively. Any gain or loss recognised in other comprehensive income and accumulated in
cash flow hedge reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When
a forecast transaction is no longer expected to occur, the gain or loss accumulated in the cash flow hedge reserve is reclassified
immediately to profit or loss.
(d) Forward exchange contracts
The Group pays certain suppliers in US Dollars (USD). In order to protect against exchange rate movements, the Group entered into
forward exchange contracts to purchase USD through the financial year.
Forward currency contracts mature when expected payments are scheduled to be made. These derivatives have met the
requirements to qualify for hedge accounting with movements recorded in other comprehensive income accordingly. The purchases
took place evenly throughout the financial year at which time the amount deferred in equity was removed from equity and included
in ‘Communication and other technology expenses’ in the Consolidated Statement of Profit or Loss.
At 31 December 2023, there are no outstanding contracts that are hedging highly probable forecasted supplier payments where the
contract notional value is forecast to total less than the expected payments for the same period.
(i) Foreign currency contracts
– Carrying amount
– Notional amount
(ii) Movement in foreign exchange contracts gains/(losses):
Hedging recognised in Other Comprehensive Income (OCI)
2023
$’000
–
–
2023
$’000
150
2022
$’000
(150)
14,606
2022
$’000
(150)
As at 31 December 2023, the aggregate amount of gains under foreign exchange forward contracts deferred in the cash flow hedge
reserve relating to these anticipated future purchase transactions is $Nil (2022: (AUD0.2 million)).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 110
111
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.5 Receivables and other assets
Trade receivables arise from revenue billed, but not yet settled by the customer.
Revenue arises from providing access to Iress software, rendering of services, or recharging for access to capital markets data.
Revenue is measured at the fair value of the consideration received or receivable.
Revenue is recognised over time as the relevant performance obligations identified in a customer contract are satisfied.
Refer to Note 1.3 for further details of revenue recognition.
Where revenue recognised exceeds billings, it results in a contract asset (refer to Note 2.5(a)), and where cash amounts are received
in advance of revenue recognition, it results in a contract liability (refer to Note 1.3(b)).
Iress’ credit terms are generally 30 days from the date of invoice. Therefore, the carrying amount of receivables approximates
their fair value.
(a) Receivables and other assets
Trade receivables
Credit loss allowance
Total receivables net of credit loss allowances
Contract assets
Prepayments
Deposits
Financial assets at fair value through profit or loss
GST/VAT receivables
Other assets
Total receivables and other assets
Notes
2.5(b)
2.5(b)
1.3(b)
2023
$’000
28,090
(280)
27,810
7,506
33,749
6,331
526
2,771
4,304
82,997
2022
$’000
34,800
(923)
33,877
12,304
30,059
1,527
456
1,603
3,835
83,661
Included within other assets are financial assets categorised at fair value through profit or loss. Iress has assessed its investments held
at fair value through profit and loss and these investments are held for trading, where they are acquired for the purpose of selling in the
short term with an intention of making a profit.
These investments primarily comprise holdings in ASX listed equities that are held for operational purposes. Regular purchase and
sales of investments are recognised on trade date, the date on which Iress commits to purchase or sell the asset. Investments are
initially recognised at fair value with any transaction costs expensed through the statement of profit and loss and other comprehensive
income. Subsequent movements in fair value of financial assets are recognised in the statement of profit and loss and other
comprehensive income. These instruments—categorised as Level 1 in the Fair Value Hierarchy—are valued using the quoted price in
active markets.
(b) Credit Loss Allowance
The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance
for all trade receivables.
Expected credit losses are measured by grouping trade receivables and contract assets, based on shared credit risk characteristics
and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics
as the trade receivables for the same types of contracts.
A provision matrix is then determined based on the historic credit loss rate for each group of customers, adjusted for any material
expected changes to the future credit risk for that customer group.
The credit loss allowance as at 31 December 2022 is determined as follows:
Provision matrix
As at 31 December 2022
1 to 30 days
31 to 60 days
61 to 90 days
Over 90 days
Contract assets
Ageing of receivables
As at 31 December 2022
1 to 30 days
31 to 60 days
61 to 90 days
Over 90 days
Total trade receivables
Contract assets
Allowance based on historic credit losses
Adjustment for expected changes in credit risk(1)
Credit loss allowance
APAC
0.1%
0.2%
0.6%
0.6%
0.0%
UK &
Europe
$’000
10,023
272
61
732
11,088
5,714
212
314
526
UK &
Europe
0.9%
2.0%
10.0%
11.1%
0.2%
Africa
$’000
1,930
151
–
19
2,100
350
13
11
24
Africa
0.4%
2.7%
7.9%
8.6%
0.1%
North
America
$’000
701
35
–
9
745
–
1
56
57
North
America
0.2%
0.3%
0.4%
0.4%
0.1%
Group
$’000
30,823
2,377
488
1,112
34,800
12,304
251
672
923
APAC
$’000
18,169
1,919
427
352
20,867
6,240
25
291
316
(1) Adjustment to reflect the higher credit risk and probability of default relating to customers that have amounts owing including invoices that are over 90 days
past due.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 112
113
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.5 Receivables and other assets (continued)
(b) Credit Loss Allowance (continued)
The credit loss allowance as at 31 December 2023 is determined as follows:
Provision matrix
As at 31 December 2023
1 to 30 days
31 to 60 days
61 to 90 days
Over 90 days
Contract assets
Ageing of receivables
As at 31 December 2023
1 to 30 days
31 to 60 days
61 to 90 days
Over 90 days
Total trade receivables
Contract assets
Allowance based on historic credit losses
Adjustment for expected changes in credit risk(1)
Credit loss allowance
APAC
0.1%
0.1%
0.1%
0.1%
0.0%
UK &
Europe
$’000
7,428
552
158
573
8,711
3,434
154
(33)
121
UK &
Europe
0.7%
2.0%
4.0%
4.2%
0.2%
Africa
$’000
1,161
213
–
101
1,475
426
27
19
46
Africa
0.7%
2.8%
5.3%
5.6%
0.1%
North
America
$’000
768
5
17
138
928
–
17
(11)
6
North
America
0.4%
0.7%
1.0%
1.0%
0.1%
Group
$’000
23,061
2,477
475
2,077
28,090
7,506
248
32
280
APAC
$’000
13,704
1,707
300
1,265
16,976
3,646
50
57
107
(1) Adjustment to reflect the higher credit risk and probability of default relating to customers that have amounts owing including invoices that are over 90 days
past due.
Significant estimate made
The adjustment for material expected changes to credit risk for each client group requires judgement about future events and, therefore,
a significant increase in actual credit losses from that expected would lead to a significant impact on financial performance.
(c) Movement in credit loss allowance
Balance at the beginning of the year
Credit loss allowances recognised during the year
Credit loss allowance utilised during the year against irrecoverable trade debtors
Foreign currency translation
Balance at the end of the year
Notes
2.5(a)
2023
$’000
(923)
(261)
923
(19)
(280)
2022
$’000
(1,248)
(30)
361
(6)
(923)
2.6 Payables and other liabilities
Payables and other liabilities are initially measured at fair value. Subsequent to initial measurement, these are recognised at amortised cost.
Liabilities are classified as current where Iress does not have an unconditional right to defer settlement beyond 12 months.
Contract liabilities represent amounts received from customers for which revenue has not been earned or recognised.
Finance arrangements relate to the acquisition of software licences.
Due to the short‑term nature of current liabilities, the carrying amount approximates their fair value.
Current
Trade payables
General accruals(1)
Goods and services received but not invoiced accruals(1)
Royalties accruals(1)
Facilities related accruals(1)
Audit fee accruals
Taxation accruals
Contract liabilities
GST/VAT payable
Employee related liabilities
Dividend payable
Accrued interest
Accrued interest on loans
Other liabilities
Total current payables and other liabilities
Notes
1.3(b)
2023
$’000
(8,747)
(7,060)
(15,696)
(5,387)
(743)
(590)
(182)
(16,482)
(5,676)
(10,360)
(78)
(11)
(1,183)
(2,271)
2022
$’000
(15,814)
(7,458)
(8,032)
(4,341)
(996)
(687)
(205)
(17,201)
(4,921)
(8,234)
(127)
–
(1,196)
(749)
(74,466)
(69,961)
(1) Prior year reclassifications of accruals related to goods and services received but not invoiced, royalties and facilities previously disclosed as general accruals.
The Group’s exposure to foreign currency risk arising from translating payables, and other liabilities to the Group’s functional currency,
is considered to be insignificant. The exposure is monitored on a net working capital basis, refer to Note 3.3.
Liquidity risk arises from current payables, and other liabilities, payable in less than one year. The Group manages this liquidity risk
by maintaining sufficient cash and current assets to meet the contractual obligations as they arise.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 114
115
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
2.7 Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
Employee benefits mainly comprise annual and long service leave entitlements in Australia, bonuses, superannuation and other
benefits. The annual leave liability is measured as current leave accrued multiplied by current salary plus statutory charges.
The amount of long service leave reflected as a current provision is that relating to employees who have reached the statutory
length of service required to either take the leave or for it to be paid out on departure from the Group.
Onerous contracts represent the expected losses on non‑cancellable property lease commitments no longer utilised by the Group.
The amount provided for in the prior comparative year represented the present value of the future expected expenses to be incurred
in relation to the leased premises over the remaining lease term.
(a) Provisions as at the end of the year include:
Current provisions
Employee benefits
Onerous contracts
Other provisions
Total current provisions
Non-current provisions
Employee benefits
Total non-current provisions
Total provisions
(b) Movements in the carrying value of provisions
As at 31 December 2022
Balance at 1 January 2022
Provision reversed/(raised) during the year
Provision utilised during the year
Foreign currency translation
Balance at 31 December 2022
As at 31 December 2023
Balance at 1 January 2023
Disposal of subsidiary
Reclassified to assets held‑for‑sale
Provision reversed/(raised) during the year
Foreign currency translation
Balance at 31 December 2023
2023
$’000
2022
$’000
(17,295)
–
–
(17,295)
(1,299)
(1,299)
(19,735)
(1,568)
(155)
(21,458)
(2,463)
(2,463)
(18,594)
(23,921)
Employee
benefits
$’000
Deferred
consideration
$’000
Onerous
loss
provision
$’000
Other
provisions
$’000
(21,107)
(1,088)
–
(3)
(22,198)
(22,198)
2,194
909
519
(18)
(18,594)
(4,400)
–
4,400
–
–
–
–
–
–
–
–
(2,171)
504
–
99
(1,568)
(1,568)
–
–
1,681
(113)
–
(60)
(92)
–
(3)
(155)
(155)
–
–
169
(14)
–
Total
$’000
(27,738)
(676)
4,400
93
(23,921)
(23,921)
2,194
909
2,369
(145)
(18,594)
2.8 Commitments and contingencies
(a) Capital commitments
As at 31 December 2023, no capital expenditure has been contracted or provided for (2022: $Nil).
(b) Contingencies
The Iress Group is currently undertaking a significant multi‑year transformation with the assistance and guidance of specialist
consultants through the 2023 and 2024 years. The fees payable to the consultants are aligned to the growth of the business and
contingent on achieving growth outcomes up to a maximum potential payment of $20 million, which would be payable in the second
half of 2025. For the maximum payment to be satisfied, the Group’s Adjusted EBITDA is required to be approximately $161 million
to $171 million, a 52% to 62% increase from the 2023 level, using an annualised run rate calculation period in the first half of 2025.
No amounts have been recorded in relation to the contingent fees at 31 December 2023.
Section 3. Debt facilities, derivatives and equity
3.1 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised
cost. Any gains or losses are recognised in the Statement of Profit or Loss in the event the borrowings are derecognised.
On 7 June 2023, Iress entered into an agreement with one of its existing lenders for a new two‑year $50 million multi‑currency facility,
increasing the total amount of unsecured floating rate bank facilities to $400 million.
(a) Borrowings held by the Group
Non-current
$50 million bank facility to June 2025
AUD
EUR
$350 million bank facilities to October 2025
AUD
GBP
EUR
£60.5 million fixed rate notes to May 2029
GBP
Total amount drawn
Borrowing costs capitalised
Total borrowings
Borrowings at fair value(1)
Borrowings at carrying value
2023
$’000
2022
$’000
2023
$’000
2022
$’000
18,000
30,007
117,000
61,688
24,330
100,970
351,995
(555)
–
–
171,000
58,520
52,689
97,661
379,870
(1,073)
18,000
30,007
117,000
61,688
24,330
113,093
364,118
(555)
–
–
171,000
58,520
52,689
107,288
389,497
(1,073)
351,440
378,797
363,563
388,424
(1) The fair value of the fixed rate notes is a Level 2 measurement in the fair value hierarchy. Level 2 fair value measurements are derived from inputs, rather than
directly quoted prices for an identical asset or liability in an active market. The inputs are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices) and applied within the valuation technique.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 116
117
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
3.1 Borrowings (continued)
(a) Borrowings held by the Group (continued)
The bank facilities allow multi‑currency drawdowns and are at variable interest rates based on BBSY, SONIA and EURIBOR
benchmark rates plus a market margin. Amounts can be repaid at the discretion of the Group. Therefore, the amounts drawn
approximate their fair value. The borrowings are unsecured, and the Group has complied with the financial covenants of its
borrowing facilities during the year.
In addition, there is a $15 million (2022: $15 million) revolving capital and contingent instruments facility used for any bank guarantees,
letters of credit or similar instruments required by the Group. As at 31 December 2023, $7.1 million (2022: $6.5 million) was utilised.
(b) Reconciliation of the movement in borrowings to the financing cash flows:
Balance at beginning of the year
Proceeds from borrowings
Repayments of borrowings
Net borrowing costs amortised
Foreign exchange rate movements
Balance at end of the year
2023
$’000
388,424
114,471
(150,471)
518
10,621
363,563
2022
$’000
296,530
369,850
(270,704)
541
(7,793)
388,424
(c) Contractual maturity analysis
Contractual cash outflow maturity analysis is shown based on undiscounted cash flows. An estimate, based on forward interest rates
and foreign currency rates, has been applied in determining interest and foreign cash outflows and inflows. The actual contractual
outflow may vary to the amounts disclosed.
31 December 2022
Outflows/(inflows)
Total borrowings drawn
Interest on borrowings
31 December 2023
Outflows/(inflows)
Total borrowings drawn
Interest on borrowings
Within
1 year
$’000
–
9,633
Within
1 year
$’000
–
19,642
1–3
years
$’000
281,939
10,881
1–3
years
$’000
251,025
19,795
Greater
than
3 years
$’000
106,485
8,625
Greater
than
3 years
$’000
113,094
9,047
3.2 Issued capital
On 1 March 2023, Iress issued 2,207,000 shares to fund the vesting of equity rights to executives and the issue of deferred shares to
selected employees for nil consideration.
Ordinary shares outstanding at the end of the year:
Balance at the beginning of the year
New shares issued to employees in relation to employee share schemes
Shares purchased and issued to employees in relation to employee
share schemes(1)
On‑market share buy‑back(1)
Shares issued under employee Share Purchase Plan
Less Treasury Shares(2)
Balance at the end of the year
Amount
Number of shares
2023
$’000
419,065
–
–
–
278
419,343
–
2022
$’000
493,883
–
(22,957)
(52,255)
394
419,065
–
419,343
419,065
2023
$’000
184,582
2,207
–
–
–
186,789
(6,467)
180,322
2022
$’000
189,628
–
–
(5,046)
–
184,582
(3,381)
181,201
(1) Shares issued during the year net of issue cost and tax.
(2) Treasury shares represent unvested and unallocated or allocated shares held by the Employee Share Trust.
3.3 Managing financial risks
(a) Market risks
Interest rate risk
The Group’s exposure to interest rate risk mainly arises from its variable rate borrowings.
An increase in the benchmark interest rates of 50 basis points (0.5%) , with all other factors held constant, would result in an increase
in the annual interest cost of the Group of $1.8 million (2022: $1.9 million).
Foreign currency risk
GBP and EUR borrowings have limited foreign currency risk to the Group because they are either drawn down by entities with the same
functional currency or by the way they have been structured.
The Group is exposed to foreign currency transaction risk mainly from payment to certain suppliers in USD and intercompany balances
denominated in foreign currency. Additional foreign currency risk arises from cash balances, receivables and payables held within
each subsidiary but denominated in a currency different to the functional currency of that subsidiary.
The material exposure to foreign currency movements arising from foreign currency working capital balances held within the
Group includes:
(d) Interest expense and financing costs
Interest expenses are recognised using the effective interest rate method. Interest expense includes exchange differences arising from
foreign currency borrowings to the extent they are regarded as adjustments to interest costs.
Interest income
Interest expense
Other financing costs comprising:
Interest expense of lease liabilities
Amortisation of borrowing costs
Net interest expense and financing costs
Notes
2.3(e)
2023
$’000
1,928
(21,267)
(1,924)
(518)
(21,781)
2022
$’000
1,007
(10,622)
(2,323)
(753)
(12,691)
Working capital denominated in foreign currency
GBP
USD
ZAR
AUD impact on profit or loss of a 1% increase in foreign currency rates
GBP
USD
ZAR
2023
‘000
7,909
1,809
42,775
2023
‘000
148
27
34
2022
‘000
2,404
(1,049)
29,414
2022
‘000
43
(15)
25
The above excludes the exposure of the Group from translating its foreign operations to the Group presentation currency.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 118
119
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
3.3 Managing financial risks (continued)
(b) Capital risk
The Group manages its capital to ensure it will be able to continue as a going concern while maximising the return to shareholders.
In order to maintain an optimal capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares or sell assets to reduce debt. The Group is not subject to any significant regulatory capital
requirements.
Management reviews the capital structure of the Group on a regular basis. As part of this review, the cost of capital and the risks
associated with each class of capital is considered as well as the impact on the Group’s available debt facilities (refer to Note 3.1)
and associated leverage.
(c) Liquidity risk
Liquidity risk is the risk that the Iress Group will not be able to meet its financial obligations as they fall due. The Group generally
processes trade creditor payments in accordance with the supplier’s trading terms. All trade and other payables are payable within
one year. The Group has no other exposure to liquidity risk. Liquidity risk is proactively managed by regularly assessing working capital
requirements and monitoring cash flows.
The Group maintains sufficient cash and working capital in order to meet future obligations and statutory regulatory capital
requirements. This assessment has been confirmed after considering the present and uncertain future impacts on the Group’s
financial position and estimated cash flows.
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting
date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows.
31 December 2022
Payables and other liabilities
Lease liabilities
Borrowings
31 December 2023
Payables and other liabilities
Lease liabilities
Borrowings
Within
1 year
$’000
69,961
17,687
–
Within
1 year
$’000
74,466
15,901
–
1–3
years
$’000
–
52,872
281,939
1–3
years
$’000
–
41,703
251,025
Greater
than
3 years
$’000
–
9,722
106,485
Greater
than
3 years
$’000
–
5,295
113,094
Contractual
cash flows
$’000
69,961
80,281
388,424
Contractual
cash flows
$’000
74,466
62,899
364,119
Carrying
amount of
liabilities
$’000
69,961
74,327
388,424
Carrying
amount of
liabilities
$’000
74,466
59,395
363,563
(d) Credit risk
Other than those financial assets whose carrying amounts best represent the maximum exposure to credit risk, the Group’s maximum
exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties
is arising from the carrying amount of the respective recognised financial assets as stated in the statement of financial position.
Bank balances
The credit risks on balances of bank deposits are limited because counterparties are subject to minimum credit ratings assigned by
international credit‑rating agencies.
Trade receivables
As trade receivables comprises a widespread customer base, there is no concentration of credit risk. The Group undertakes ongoing
credit evaluations of the financial condition of their customers. The Group does not consider there to be any significant credit risk that
has not been insured or adequately provided for.
The Group’s credit policy requires customers to pay within 30 days from the date of invoice. No interest is charged on the
outstanding trade receivables balance nor does the Company hold any collateral or insurance over these trade debtors’ balances.
Trade receivables are not impaired unless the Group becomes aware of any objective evidence that the receivable may be impaired.
The Group actively engages with customers to realise the payment of invoices remaining outstanding after contractual due dates.
A credit loss allowance is recognised where the Company has identified objective evidence that an amount owing may not be
recoverable, such as the observed financial difficulty of a customer, or the Group has identified a risk of expected credit losses based
on a historical trend of credit losses.
Section 4. Other disclosures
4.1 Taxation
Total income tax expense comprises current and deferred tax recognised in the Statement of Profit or Loss in the year. Current and
deferred tax is also recognised directly in equity, and not in the Statement of Profit or Loss, to the extent it is attributable to amounts
and movements which have also been recognised directly in equity.
Current tax
Current tax comprises expected tax payable/receivable on business taxable income/loss which is recognised in the Statement of
Profit or Loss in the current year. Any adjustments to tax payable/receivable are recognised in the current year that relate to taxable
income/loss recognised in the Statement of Profit or Loss in prior years.
Current tax is measured using the applicable enacted (or substantively enacted) income tax rates, at the reporting date in the
countries where the Company’s subsidiaries and associates operate.
Deferred tax
Deferred tax represents the movements in deferred tax assets and liabilities which have been recognised during the year and which
are attributable to amounts recognised in the Statement of Profit or Loss in the current year and the amounts recognised in the
Statement of Profit or Loss in prior years. Deferred tax assets and liabilities are attributable to temporary timing differences
between the carrying amount of assets and liabilities recognised for financial reporting purposes, and the tax base of assets and
liabilities recognised for tax purposes.
Deferred tax assets are recognised for deductible temporary differences, unused tax losses and unused tax credits to the extent it is
probable that future taxable profits will be available against which they can be realised.
Deferred tax liabilities are recognised for all the assessable temporary differences as required by accounting standards.
Deferred tax is determined using tax rates which are expected to apply when the deferred tax asset/liability is expected to be realised
based on enacted (or substantively enacted) laws at the reporting date. The measurement of deferred tax also reflects the tax
consequences flowing from the manner in which the Group expects, at the reporting date, to realise or settle the carrying amount of its
assets and liabilities.
Tax consolidation
The Company and its wholly‑owned Australian resident entities are part of a tax consolidated group under Australian taxation law. Iress
Limited is the head entity of the Australian tax consolidated group. Tax expense, deferred tax assets and deferred tax liabilities arising
from temporary differences of the members of the tax consolidated group are recognised in the separate financial accounts of the
members of the Australian tax consolidated group using the stand‑alone taxpayer approach. Current and deferred tax assets and
liabilities arising from unused tax losses, and tax credits of the members of the Australian tax consolidated group, are recognised by
the Company (as head entity of the tax consolidated group).
Due to the existence of a tax funding arrangement between the entities in the Australian tax consolidated group, amounts are
recognised as payable to, or receivable by, the Company and each member of the Australian tax consolidated group. This is in relation
to the tax contribution amounts paid or payable between the parent entity and the other members of the Australian tax consolidated
group in accordance with the arrangement.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 120
121
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
4.1 Taxation (continued)
(a) Income tax expense for the year including current and deferred tax
(c) Deferred income tax assets and liabilities
Income tax expense recognised in Statement of Profit or Loss
Current income tax
Current tax expense
Adjustments for current tax of prior periods
Total current income tax expense
Deferred income tax expense
(Reversal)/origination of temporary differences
Adjustments in respect of deferred income tax of prior periods
Total deferred tax expense
Total income tax expense recognised in the Statement of Profit or Loss
Income tax expense recognised directly in equity
Current tax credited directly to other reserves
Deferred tax credited directly to other reserves
Total income tax recognised in Other comprehensive income
(b) Reconciliation of income tax on profit at the Australian tax rate to total income tax expense
Profit before income tax
Income tax calculated at the Australian tax rate of 30% (2022: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income
Differences in overseas tax rates
Effect of non‑assessable income and other deductible items
Effect of non‑deductible expenses and other assessable items
Employee equity grant amortisation
Adjustments for current and deferred tax of prior years
Unrecognised tax losses
Income tax expense
2023
$’000
2022
$’000
18,004
(304)
17,700
(7,148)
(133)
(7,281)
10,419
(240)
240
–
2023
$’000
(127,065)
(38,120)
8,675
(6,709)
40,165
5,142
(437)
1,703
10,419
14,467
(2,195)
12,272
3,322
(346)
2,976
15,248
(240)
240
–
2022
$’000
67,920
20,376
351
(11,734)
8,511
576
(2,541)
(291)
15,248
For the year ended
31 December 2022
Deferred tax assets
Receivables and other assets
Plant and equipment
Computer software
Payables and other liabilities
Provisions and accruals
Carry forward tax losses
Capital transaction costs
Share‑based payments
Leases
Other
Total deferred tax assets
Deferred tax liabilities
Trade and other payables
Computer software
Intangible assets
Employee share plan
Total deferred tax liabilities
Net deferred tax
For the year ended
31 December 2023
Deferred tax assets
Receivables and other assets
Plant and equipment
Intangible assets
Payables and other liabilities
Provisions and accruals
Carry forward tax losses
Capital transaction costs
Share‑based payments
Leases
Total deferred tax assets
Set‑off deferred tax balances
Net deferred tax assets
Deferred tax liabilities
Trade and other payables
Intangible assets
Employee share plan
Total deferred tax liabilities
Set‑off deferred tax balances
Net deferred tax liabilities
Net deferred tax
Opening
balance
$’000
Charged
to income
$’000
Reclassified
to held-for-sale
$’000
Charged to
OCI/equity
$’000
Exchange
differences
$’000
Closing
balance
$’000
215
3,636
2,030
5,092
8,322
4,069
3,372
2,139
2,703
2
(142)
(488)
(264)
(329)
(1,607)
248
(795)
(308)
(118)
(3)
31,580
(3,806)
(600)
(421)
(8,898)
–
(9,919)
21,661
(80)
136
1,815
(1,041)
830
(2,976)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(240)
–
–
–
(240)
–
–
–
–
–
(2)
(97)
–
(6)
(7)
4
–
(86)
–
–
71
3,051
1,766
4,757
6,708
4,321
2,337
1,745
2,585
(1)
(194)
27,340
4
20
51
–
75
(676)
(265)
(7,032)
(1,041)
(9,014)
(240)
(119)
18,326
Opening
balance
$’000
Charged
to income
$’000
Reclassified
to held-for-sale
$’000
Charged to
OCI/equity
$’000
Exchange
differences
$’000
Closing
balance
$’000
71
3,051
1,765
4,757
6,708
4,321
2,337
1,745
2,585
27,340
–
–
(676)
(7,297)
(1,041)
(9,014)
–
–
18,326
(62)
2,431
(1,646)
2,246
(3,271)
(467)
(818)
469
(407)
(1,525)
–
–
468
7,297
1,041
8,806
–
–
7,281
320
–
897
–
(882)
–
–
–
–
335
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(240)
–
–
(240)
–
–
–
–
–
–
–
–
2
104
310
(8)
–
(16)
–
94
(18)
468
–
–
2
–
–
2
–
–
331
5,586
1,326
6,995
2,555
3,838
1,279
2,308
2,160
26,378
(206)
26,172
(206)
–
–
(206)
206
–
335
(240)
470
26,172
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 122
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
4.1 Taxation (continued)
(d) Unused tax losses to carry forward for which no deferred tax asset has been recognised
Assets and liabilities reclassified as held-for sale
Hong Kong (Tax rate 16.5% (2022: 16.5%)
France (Tax rate 25.0% (2022: 25.0%)
Australia (Tax rate 30.0% (2022: 30.0%)
Potential tax benefit
2023
$’000
59
80,949
17,130
25,386
2022
$’000
159
75,903
17,130
24,141
4.2 Sale of subsidiary
During the financial year, Iress sold its Managed Funds Administration (MFA) business. Iress completed the transaction on
1 October 2023 at which time the carrying amount of MFA’s total assets amounted to $35.7 million and the total liabilities amounted
to $2.9 million.
Derecognised assets and liabilities disposed at the date of sale
Assets and liabilities disposed of
Cash and cash equivalents
Receivables and other assets
Intangible assets
Plant and equipment
Payables and other liabilities
Provisions
Net assets disposed of
Gain on the disposal of subsidiary
Total consideration
Consideration transferred
Cash and cash equivalents
Deferred consideration
Total fair value of consideration
Net cash inflow arising on disposal:
Consideration received in cash and cash equivalents
Less: cash and cash equivalents disposed of
Net cash inflow
01 October
2023
$’000
Notes
2.1(a)
2.2(a)
2.7(b)
(247)
(4,299)
(31,174)
(7)
670
2,194
(32,863)
(17,592)
(50,455)
45,455
5,000
50,455
45,455
(247)
45,208
4.3 Assets held-for-sale
Non‑current assets (or disposal group) are classified as held‑for‑sale and measured at the lower of their carrying amount and fair
value less costs of disposal if their carrying amount will be recovered principally through a sale transaction. They are not depreciated
or amortised. For an asset to be classified as held‑for‑sale, it must be available for immediate sale in its present condition and its sale
must be highly probable.
An impairment loss is recognised in the Statement of Profit or Loss if the carrying amount of the non‑current asset held‑for‑sale
exceeds its fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less cost of disposal
of a non‑current asset held‑for‑sale but not in excess of any cumulative impairment loss previously recognised. A gain or loss not
previously recognised by the date of the sale of the non‑current asset held‑for‑sale is recognised at the date of derecognition.
During the financial year, Iress entered into a heads of agreement to divest its OneVue Platform business. The transaction is expected
to complete by 30 April 2024 .
The associated current and non‑current assets and liabilities of the disposal group have been classified as held‑for‑sale as at
31 December 2023. The results of the OneVue Platform business are accounted for in the Managed Portfolio – Other segment.
As at 31 December 2023, the carrying amount of OneVue Platform’s total assets amounted to $11.5 million and the total liabilities
amounted to $3.6 million.
123
2023
$’000
3,431
1,572
6,581
(193)
(2,776)
(347)
(335)
7,933
Notes
2.1(a)
ASSETS
Current assets
Receivables and other assets
Non-current assets
Goodwill
Computer software
LIABILITIES
Current liabilities
Payables and other liabilities
Accruals
Non-current liabilities
Provisions for employee benefits
Deferred tax liabilities
Total net assets held-for-sale
4.4 Iress Limited – parent entity financial information
The ultimate controlling entity of the Group is Iress Limited, which is a for‑profit entity listed on the Australian Securities Exchange (ASX).
(a) Summary financial information
The financial statements for the parent entity, Iress Limited:
Current assets
Non‑current assets
Total assets
Current liabilities
Non‑current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Profit for the year(1)
Total comprehensive income
2023
$’000
55,327
888,911
944,238
99,055
335,603
434,658
509,580
419,343
25,366
64,871
509,580
4,566
4,566
2022
$’000
78,218
893,026
971,244
60,449
370,689
431,138
540,106
419,065
26,179
94,862
540,106
50,771
50,771
(1) Included within profit for the year is dividend income from subsidiaries of $Nil (2022: $4.8 million).
(b) Capital commitments
As at 31 December 2023, no capital expenditure has been contracted or provided for (2022: $Nil).
(c) Contingencies
The Iress Group is currently undertaking a significant multi‑year transformation with the assistance and guidance of specialist
consultants through the 2023 and 2024 years. The fees payable to the consultants are aligned to the growth of the business and
contingent on achieving growth outcomes up to a maximum potential payment of $20 million, which would be payable in the second
half of 2025. For the maximum payment to be satisfied, the Group’s Adjusted EBITDA is required to be approximately $161 million
to $171 million, a 52% to 62% increase from the 2023 level, using an annualised run rate calculation period in the first half of 2025.
No amounts have been recorded in relation to the contingent fees at 31 December 2023.
As at 31 December 2023, no other material contingent liabilities have been contracted or provided for (2022: $Nil).
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 124
125
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
4.5 Subsidiaries
Details of the Group’s wholly‑owned subsidiaries at the end of the financial year:
Australia
BC Gateways Pty Ltd
Diversa Funds Management Pty Ltd
Diversa Pty Ltd
FUND.eXchange Pty Ltd
Financial Synergy Actuarial Pty Ltd(1)
Financial Synergy Holdings Pty Ltd(1)
Financial Synergy Pty. Limited(1)
Glykoz Pty Ltd
Group Insurance & Superannuation Concepts Pty Ltd
Innergi Pty Ltd
Investment Gateway Pty Ltd
Iress Data Pty Ltd(1)
Iress Euro Holdings Pty Ltd(1)
Iress Information Pty Ltd
Iress International Holding Pty Ltd(1)
Iress South Africa (Australia) Pty Ltd(1)
Iress Spotlight Wealth Management Solutions (RSA) Pty Ltd(1)
Iress Wealth Management Pty Ltd(1)
Lucsan Capital Pty Ltd
Map Funds Management Pty Ltd
No More Practice Education Pty Ltd
No More Practice Holdings Pty Ltd
OneVue Financial Pty Ltd
OneVue Holdings Ltd(1)
OneVue Pty Ltd
OneVue Services Pty Ltd
OneVue Super Member Administration Pty Ltd
OneVue Super Services Holdings Pty Ltd
OneVue Super Services Pty Ltd
OneVue UMA Pty Ltd
OneVue Unit Registry Pty Ltd
OneVue Wealth Assets Pty Ltd
OneVue Wealth Services Ltd
OneVue Wealth Solutions Pty Ltd
Planning Resources Group Pty Ltd(1)
Top Quartile Management Pty Ltd
Tranzact Consulting Pty Ltd
Tranzact Financial Services Pty Ltd
Tranzact Superannuation Services Pty Ltd
Canada
Iress Canada Holdings Ltd
Iress (LP) Holdings Corp.
Iress Market Technology Canada LP
South Africa
Advicenet Advisory Services (Pty) Ltd
Iress Hosting (Pty) Ltd
Iress Financial Markets (Pty) Ltd
United Kingdom
Iress FS Group Ltd
Iress FS Ltd
Iress Mortgage Services Ltd
O&M Systems Ltd
O&M Life & Pensions Ltd
Iress Portal Ltd
Iress Solutions Ltd
Iress Technology Ltd
Other countries
Iress (Ontario) Ltd
KTG Technologies Corp.
Iress MD RSA (Pty) Ltd
Iress Wealth MNGT (Pty) Ltd
Iress (UK) Ltd
Iress UK Holdings Ltd
Iress Web Ltd
Proquote Ltd
Pulse Software Systems Ltd
QuantHouse UK Ltd
TrigoldCrystal Ltd
BC Gateways Ltd (Hong Kong)
Iress Asia Holdings Ltd (Hong Kong)
Iress Inc
Iress Malaysia Holdings Sdn Bhd (Malaysia)
Iress Market Technology (Singapore) Pte Ltd (Singapore)
Iress (NZ) Ltd (New Zealand)
Iress SAS
Iress Tunisia Branch Sàrl
QH HoldCo (Luxembourg)
QuantHouse Singapore Pte Ltd (Singapore)
Waysun Technology Development Ltd (Hong Kong)
(1) The Australian subsidiaries marked with this footnote are currently party to the Iress Limited Deed of Cross Guarantee dated 22 December 2014, as varied
from time to time.
4.6 Deed of cross guarantee
Iress Limited and a number of Australian wholly‑owned subsidiaries (outlined in Note 4.5) are party to a Deed of Cross Guarantee under
which each company guarantees the debts of the others. By entering into the deed, the relevant, wholly‑owned subsidiaries have been
relieved from the requirement to prepare the financial report and Directors’ Report under ASIC Corporations (Wholly-Owned Companies)
Instrument 2016/785 issued by the Australian Securities and Investments Commission. The amounts disclosed in the tables below
represent the consolidated amounts for the entities within the closed group and therefore exclude Iress Group subsidiaries.
(a) Consolidated Statement of Profit or Loss and retained earnings
Profit before tax
Income tax expense
Net profit after tax
Retained earnings at the beginning of the year
Dividends declared
Transfers from share‑based payments reserve
Reclassification of the fair value of Iress UK Holdings Limited shares transferred to
Iress International Holding Pty Ltd
Retained earnings at the end of the year
(b) Consolidated Statement of Financial Position
ASSETS
Current assets
Cash and cash equivalents
Receivables and other assets
Receivables from Iress Group companies outside the Deed
Current taxation receivables
Total current assets
Non-current assets
Intangible assets
Plant and equipment
Right‑of‑use assets
Investments in subsidiaries
Deferred tax assets
Other financial assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Payables and other liabilities
Lease liabilities
Provisions
Derivative liabilities
Current taxation payables
Total current liabilities
2023
$’000
48,876
(4,988)
43,888
133,913
(55,375)
20,818
–
143,244
2022
$’000
65,380
(8,415)
56,965
43,777
(86,858)
18,596
101,433
133,913
2023
$’000
2022
$’000
13,355
54,520
81,924
9,919
28,928
45,881
71,703
8,547
159,718
155,059
111,025
12,441
27,377
440,408
22,599
174,694
788,544
948,262
37,537
8,405
15,954
–
10,154
72,050
120,521
14,641
33,299
449,608
19,271
165,724
803,064
958,123
28,831
7,569
17,550
150
151
54,251
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 126
127
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
4.6 Deed of cross guarantee (continued)
(b) Consolidated Statement of Financial Position (continued)
Non-current liabilities
Lease liabilities
Provisions
Borrowings
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Issued capital
Share‑based payments reserve
Cash flow hedge reserve
Other reserves
Foreign currency translation reserve
Retained earnings
Total equity
2023
$’000
2022
$’000
25,303
1,647
363,563
–
390,513
462,563
485,699
419,343
25,366
–
(101,433)
(821)
143,244
485,699
31,781
2,155
388,424
2,796
425,156
479,407
478,716
419,065
26,329
(150)
(101,433)
992
133,907
478,716
4.7 Basis of preparation
Iress Limited (the ‘Company’) is a for‑profit company domiciled in Australia. The full year financial report is a general purpose
financial report comprising the Company and its subsidiaries (collectively referred to as the ‘Group’ or ‘Iress’) For the year ended
31 December 2023. The full year financial statements:
• have been prepared in accordance with the Corporations Act 2001 (Cth), Australian Accounting Standards and Interpretations, and
International Financial Reporting Standards (IFRS)
• were authorised for issue by the Directors on 21 February 2024
• have been prepared on a historical cost basis, except for derivative financial instruments and investments in financial assets which
have been measured at fair value
• have been prepared on a going concern basis; and
• are measured and presented in Australian dollars with all values rounded to the nearest thousand dollars in accordance
with ASIC Corporations (Rounding in Financial/Directors Reports) Instrument 2016/191 dated 24 March 2016 (ASIC guidance),
unless otherwise stated.
(a) Adoption of new standards
In the current period, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board that are relevant to its operations and effective for annual reporting periods commencing on or after
1 January 2023 including the following:
AASB 17 Insurance contracts
— Measurement of insurance liabilities
AASB 2021–2 Amendments to Australian Accounting Standards
— Disclosure of Accounting Policies and Definition of Accounting Estimates
AASB 2020–3 Amendments to Australian Accounting Standards
— Annual Improvements 2018–2020 and Other Amendments
AASB 2021–5 Amendments to Australian Accounting Standards
— Deferred tax related to assets and liabilities arising from a single
transaction
AASB 2021–6 Amendments to Australian Accounting Standards
— Disclosure of Accounting Policies: Tier 2 and Other Australian
Accounting Standards
AASB 2021–7 Amendments to Australian Accounting Standards
— Effective Date of Amendments to AASB 10 and AASB 128 and Editorial
Corrections
AASB 2022–1 Amendments to Australian Accounting Standards
— Initial application of AASB 17 and AASB 9 – comparative information
AASB 2022–6 Amendments to Australian Accounting Standards
— Non-current Liabilities with Covenants
AASB 2022–8 Amendments to Australian Accounting Standards
— Insurance Contracts – Consequential Amendments
AASB 2023–2 Amendments to AASB 112
— International Tax Reform Pillar Two Model Rules
None of these standards have had a material impact on the Group in the current period and are not expected to have a material impact
in future reporting periods or on foreseeable future transactions.
(b) Standards on issue but not yet effective
At the date of authorisation of the financial statements, the following new accounting standards and interpretations have been
published that are not mandatory for 31 December 2023 reporting period and have not yet been applied by the Group within this
financial report:
AASB 2014–10 Consolidated Financial Statements and
AASB 128 Investments in Associates (amendments)
— Sale or contribution of assets between an investor and its associate or
joint venture (2)
AASB 2020–1 Amendments to Australian Accounting Standards
— Classification of liabilities as current or non-current (1)
AASB 2022–5 Amendments to Australian Accounting Standards
— Lease Liability in a Sale and Leaseback (1)
AASB 2023–1 Amendments to Australian Accounting Standards
— Amendments to AASB 107 and AASB 7 – Disclosures of Supplier Finance
Arrangements (1)
AASB 2023–3 Amendments to Australian Accounting Standards
— Disclosure of Non-current Liabilities with Covenants: Tier 2 (1)
(1) Effective for annual periods beginning on or after 1 January 2024.
(2) Effective for annual periods beginning on or after 1 January 2025.
Iress does not believe these new accounting standards, amendments, and interpretations will have a material impact on the financial
statements of the Group in future periods.
(c) Changes in presentation of the Consolidated statement of profit or loss and other comprehensive income
Iress has revised its presentation of expenses recognised in profit or loss for the year ended 31 December 2023, using a classification
based on the nature of expenses, which is considered to provide the most reliable and relevant information about the Group’s financial
performance. The analysis of expenses has been presented in the Consolidated statement of profit or loss and other comprehensive
income. Comparative balances have been reclassified to ensure consistency with changes to current period presentation and classification.
The main change to the presentation of the Consolidated statement of profit or loss and other comprehensive income was to remove
the previously disclosed line item ‘Net other expenses’ and to reclassify corresponding amounts recognised into the line
items ‘Employee benefit expenses’, ‘Customer data fees’, ‘Amortisation, depreciation, derecognition and impairment expense’ and
newly‑presented line items ‘Professional fees’, Business development and marketing’ and ‘General office and administration’.
In addition, certain amounts of platform administration fees recognised as gross revenue and expenses in the prior financial year have
been reclassified as a net amount disclosed in the line item ‘Revenue from contracts from customers’.
(d) Summary of general accounting policies
The following significant accounting policies have been adopted in the preparation and presentation of the financial report:
(i) Consolidation
The consolidated financial statements include the financial statements of the Company, and the information and results of each
subsidiary from the date on which the Company obtains control and until such time as the Company ceases to control such entity.
An entity is controlled when Iress is exposed to, or has rights to, variable returns from involvement with the entity and has the ability
to affect those returns through power over the entity.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the
Group’s accounting policies.
In reporting the consolidated financial statements, all intercompany balances and transactions, and unrealised profits or losses
within the Group are eliminated in full.
(ii) Foreign currency translation
Foreign currency transactions
All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of
the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at the reporting date.
Exchange differences are recognised in profit or loss in the period in which they arise, except for exchange differences on monetary
items receivable from or payable to a foreign operation for which settlement is neither planned or likely to occur. These form part of
the net investment in a foreign operation, and are recognised in the foreign currency translation reserve in the consolidated financial
statements in addition to profit or loss on disposal of the net investment.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 128
129
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December 2023
4.7 Basis of preparation (continued)
(d) Summary of general accounting policies (continued)
(ii) Foreign currency translation (continued)
Foreign operations
Assets and liabilities of foreign operations are translated using
exchange rates prevailing at the end of each reporting period.
Income and expense items are translated at the average
exchange rates for the period, unless exchange rates fluctuate
significantly during that period, in which case the exchange
rates at the dates of the transactions are used. Any exchange
differences are recognised in equity. On the disposal of a foreign
operation, all of the exchange differences accumulated in equity
in respect of that operation are reclassified to profit or loss.
Financial assets
The Company’s financial assets include cash and cash
equivalents, derivatives, listed shares and trade and
other receivables.
Classification and subsequent measurement of financial assets
Financial assets that meet the following conditions and are
subsequently measured at amortised cost include:
• the financial asset is held within a business model whose
objective is to collect contractual cash flows
• the contractual terms give rise on specified dates to cash
flows that are solely payments of principal and interest on
the principal amount outstanding.
(iii) Financial instruments
Financial assets and financial liabilities are recognised in the
Company’s Statement of Financial Position when the Group
becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at
fair value. Transaction costs directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss.
When the transaction price differs from fair value at initial
recognition, the Group will account for such difference if:
• fair value is evidenced by a quoted price in an active market for
an identical asset or liability or based on a valuation technique
that uses only data from observable markets, then the difference
is recognised as a gain or loss on initial recognition (i.e. day 1
profit or loss)
• in all other cases, the fair value will be adjusted to bring it in
line with the transaction price (i.e. day 1 profit or loss will be
deferred by including it in the initial carrying amount of the
asset or liability).
After initial recognition, the deferred gain or loss will be released
to profit or loss such that it reaches a value of zero at the time
when the entire contract can be valued using active market
quotes or verifiable objective market information.
Depending on the type of financial instrument, the Group can
adopt one of the following policies for the amortisation of day 1
gain or loss:
• Calibrate unobservable inputs to the transaction price and
recognise the deferred gain or loss as the best estimates
of those unobservable inputs change based on observable
information.
• Release the day 1 gain or loss in a reasonable fashion based
on the facts and circumstances (i.e. using either straight‑line
or non‑linear amortisation).
All other financial assets are subsequently measured at fair value.
Amortised cost and interest income
Interest income is recognised using the effective interest method
for financial assets measured subsequently at amortised cost.
Interest income is calculated by applying the effective interest
rate to the gross carrying amount of a financial asset, except for
financial assets that have subsequently become credit impaired.
Impairment of financial assets
The Group performs impairment assessment under the expected
credit losses model on financial assets (including trade and other
receivables, receivables from related parties and bank balances),
which are subject to impairment under AASB 9 Financial
Instruments. The amount of expected credit losses is updated
at the end of each reporting period to reflect changes in credit
risk since initial recognition. Refer to Note 2.5(b) on the Group’s
approach to the credit loss allowance.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual
rights to the cash flows from the asset expire or when it transfers
the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. On derecognition of a
financial asset measured at amortised cost, the difference between
the asset’s carrying amount and the sum of the consideration
received and receivable is recognised in profit or loss.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and on‑demand
deposits, and other short‑term highly liquid investments, readily
convertible into a known amount of cash and are subject to an
insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements
entered into. An equity instrument is any contract that evidences
a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments issued by the Company are
recorded at the proceeds received, net of direct issue costs.
(v) Taxation
Significant judgement is required in the recognition and
measurement of deferred tax assets relating to the timing of
reversal of temporary differences and the recoverability of
unused tax losses and unused tax credits to the extent it is
probable that future taxable profits will be available against
which they can be realised.
4.9 Transactions with related parties
There are no shareholders with substantial holdings that
materially transacted with the Group during the year.
4.10 Events subsequent to the Statement of
Financial Position date
There has been no matter nor circumstance which has arisen
since the end of the financial year that has 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
subsequent years.
Bank borrowings
Interest‑bearing bank loans and overdrafts are recorded at
the fair value of proceeds received, net of direct issue costs.
Finance charges, including premiums payable on settlement
or redemption and direct issue costs, are accounted for on
an accruals basis in the statement of comprehensive income
using the effective interest rate method. They are added to
the carrying amount of the instrument to the extent that they
are not settled in the period in which they arise.
Trade payables
Trade payables are initially measured at fair value and are
subsequently measured at amortised cost, using the effective
interest rate method.
4.8 Significant sources of estimation uncertainty
The following are subject to estimates and require
significant judgement:
(i) Goodwill
Significant judgement is required in the assumptions used in the
value‑in‑use models used in impairment testing. Refer to Note 2.1
for more detailed information.
(ii) Revenue from contracts with customers
Significant judgement is required in relation to whether revenue
from contracts with customers should be recognised over time or
at a point‑in‑time, identification of the performance obligations in
the contract and the allocation of the transaction price to each
specific performance obligation, the implementation revenue
recognised as a percentage of completion and it being a distinct
performance obligation, as well as determining whether Iress
is the principal or agent in a transaction with an end consumer.
Refer to Note 1.3 for further details of revenue recognition.
(iii) Credit Loss Allowance
Significant judgement is required in the assumptions made
in calculating the Group’s credit loss allowance included within
trade and other receivables. Refer to Note 2.5 for more detailed
information.
(iv) Development costs capitalised
Significant judgement is required in determining whether
internally generated intangible assets are recognised where
the cost of actual development can be reliably measured and
clearly distinguished from research and ongoing operating and
maintenance activities, and whether costs that are directly
associated with the development of software are recognised
where the established criteria are met. Refer to Note 2.1 for
more detailed information.
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements 130
Directors’ Declaration
31 December 2023
Independent Auditor’s Report
131
In the Directors’ opinion:
(a) the financial statements and notes set out on pages 46 to 93 are in accordance with the Corporations Act 2001, including:
(i) complying with the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements
(ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2023 and of its performance for the
financial year ended on that date
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable
(c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified
in Note 4.5 will be able to meet any obligations or liabilities to which they are, or may become subject by virtue of the deed of cross
guarantees described in Note 4.6.
Note 4.7 confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of
the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Roger Sharp
Chair
Melbourne
21 February 2024
Marcus Price
Managing Director and Chief Executive Officer
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Independent auditor’s report to the members of Iress Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Iress Limited (the Company) and its subsidiaries (collectively the
Group), which comprises the consolidated statement of financial position as at 31 December 2023, the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial
statements, including material accounting policy information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2023
and of its consolidated financial performance for the year ended on that date; and
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
report section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of
the financial report. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial report.
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Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements
132
Independent Auditor’s Report (continued)
133
1. Impairment assessment for intangibles
Why significant
How our audit addressed the key audit matter
A significant component of the Group’s total assets are
intangible assets, amounting to $550.7 million, representing
70% of the Group’s total assets. Included within this
intangible asset balance is goodwill amounting to $481.1
million. In line with the accounting standard requirements,
these goodwill balances are required to be tested for
impairment annually, and where indicators exist.
In the current year, the Group has performed a strategic
restructure with effect from 1 July 2023. For the purposes
of June 2023 Half Year reporting, this was determined to be
an indicator of impairment for all cash generating units
(“CGUs”), with management performing an impairment
assessment and subsequently recognising a $130.4 million
impairment in relation to the UK CGU. Management
performs their annual impairment assessment as at
December each year, and therefore have also performed an
impairment assessment for all CGUs within the current
structure as at year end. No further impairment was
recognised as a result of this assessment at year end.
The impairment assessments are complex and involve
significant management judgement specifically in relation to
identification of CGUs, preparation of cash flow forecasts
including long term growth rates and determination of
discount rates. The assessment completed by the Group
includes numerous assumptions and estimates and as such is
considered to be subject to a significant level of estimation
uncertainty.
Based on the factors noted above we consider the
impairment assessment of intangible assets to be a key audit
matter.
Our audit procedures included the following:
► Assessed the application of the valuation methodologies
applied.
► Evaluated whether the determination of CGUs was in
accordance with Australian Accounting Standards.
► Agreed the forecast cashflows within the impairment
model to the Board approved budgets.
► Considered the historical accuracy of the Group’s cash
flow forecasting process.
► Compared the forecast cash flows used in the
recoverable amount models to the actual current year
financial performance of the underlying CGUs for
reasonability.
► Assessed key inputs being discount rates and terminal
value growth rates adopted in the recoverable amount
models including comparison to available market data
for comparable businesses.
► Performed sensitivity analysis on key inputs and
assumptions included in the forecast cashflows and
impairment models including the discount rates, to
assess the risk of the CGU carrying values exceeding the
recoverable amount.
► We compared earnings multiples derived from the
group’s recoverable amount models to those observable
from external market data of comparable listed entities.
► Assessed the adequacy of the disclosures included in the
financial report including "reasonably possible change"
sensitivity disclosure.
Our valuation specialists were involved in the conduct of
these procedures where required.
2. Capitalised Software Development Costs
Why significant
How our audit addressed the key audit matter
The Group capitalises internally generated software assets
where they represent the development of new discrete
products or market offerings outside the core customer
systems and are able to be reliably measured. The carrying
value of capitalised development costs at 31 December
2023 is $16.9 million (PY: $25.8 million). Capitalised
development costs are work-in-progress as at 31 December
2023 have not yet begun to be amortised. Capitalised
development costs are reviewed each period to identify
projects which have been discontinued requiring associated
capitalised costs to be derecognised.
During the year ended 31 December 2023 the Group
capitalised $14.1 million (31 December 2022: $19.9
million). In addition, $13.3 million was derecognised as a
result of ongoing projects being discontinued in connection
with the strategic review completed in March 2023.
Our audit procedures included the following:
► We selected a sample of software development projects
to determine the nature and status of the projects and
assessed whether the costs incurred on these projects
met the capitalisation requirements under AASB 138
Intangible assets.
► We met with management, including business partners
and Project Leads, to understand project status, assess
the feasibility of project completion and assess
the future economic benefits.
► For a sample of capitalised employee and contractor
costs, we agreed the pay rates to employment contracts
or supplier invoices. We discussed with management and
relevant employees their involvement in projects to
assess the percentage of employee time allocated to the
project.
► We assessed the timing of commencement of
amortisation for any projects completed during the year.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Why significant
How our audit addressed the key audit matter
This also included assessing the useful lives and
recalculating the amortisation for the year.
► We enquired regarding any discontinued projects and
ensured they had been appropriately derecognised.
► We assessed the adequacy of the related disclosures in
the financial report, including the judgements associated
with the capitalisation of intangible software assets.
The Group’s process for capitalising development costs
involves significant judgement as it includes evaluating the
commercial viability of the software, distinguishing
development costs from research and ongoing maintenance
activities and estimating the time which staff spend
developing the software and the costs attributable to that
time. The capitalization of development costs continues to
be a key focus area from regulatory bodies on the validation
of the feasibility and legitimacy of capitalised costs relating
to internally generated assets.
Due to the above, this matter is significant to the audit and
there is a high level of audit effort required due to the level
of complexity and management judgement involved. As
such, we consider capitalisation of software development
assets to be a key audit matter.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the information
included in the Company’s 2023 annual report, but does not include the financial report and our auditor’s
report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related
assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements
134
Independent Auditor’s Report (continued)
135
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
► Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
► Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for
our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 55 to 81 of the directors’ report for the year
ended 31 December 2023.
In our opinion, the Remuneration Report of Iress Limited for the year ended 31 December 2023, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Ernst & Young
David Petersen
Partner
Melbourne
21 February 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Iress LimitedStrategic ReportESGAnnual Report 2023Financial ReportFinancial Statements
136
Financial Report
137
Shareholder information
Corporate directory
Directors
R Sharp
Chair since May 2021 and Independent Non‑Executive Director since February 2021
M Price
Independent Non‑Executive Director since July 2021 and Managing Director and Chief Executive Officer since October 2022
N Beattie
Independent Non‑Executive Director since February 2015
M Dwyer
Independent Non‑Executive Director since February 2020
J Fahey
Independent Non‑Executive Director since October 2017 and Chair of the People & Performance Committee since February 2020
A Glenning
Independent Non‑Executive Director since October 2022
T Vonhoff
Independent Non‑Executive Director since February 2020 and Chair of the Audit & Risk Committee since May 2021
Company Secretary
M Bowan (interim)
Registered Office
Level 16, 385 Bourke Street
Melbourne VIC 3000
Phone: +61 3 9018 5800
Fax: +61 3 9018 5844
Share Registry
Computershare Investors Services Pty Limited
452 Johnston Street
Abbotsford VIC 3067
www.computershare.com
Stock Exchange Listing
Iress Limited shares are quoted on the Australian Securities Exchange under the code: IRE
Auditor
Ernst & Young
The below shareholder information was applicable as at 18 January 2024:
(a) Distribution of members and their holdings:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
(b) Substantial shareholders(1):
Mitsubishi UFJ Financial Group, Inc.(3)
Challenger Limited and Apollo Global Management, Inc.
DNR Capital Pty Ltd
The Vanguard Group, Inc.
Selector Funds Management Limited
Total substantial shareholders
Balance of register
Total
Number of
shareholders
Number of
shares
% of issued
capital
4,858
2,966
549
347
34
8,754
1,849,865
7,156,464
3,959,023
8,263,984
165,560,138
186,789,474
0.99
3.83
2.12
4.42
88.64
100.00
Number held(1)
%(2)
22,173,568
19,361,036
13,630,278
9,465,830
9,350,918
73,981,630
112,807,844
186,789,474
11.87
10.37
7.30
5.07
5.01
39.62
60.38
100.00
(1) Number of securities based on the most recent section 671B disclosure lodged with ASX Ltd.
(2) Percentage based on Iress’ issued share capital as at 18 January 2024.
(3) First Sentier Holdings Pty Limited lodged a section 671B notice (“Subsidiary Notice”) on 5 December 2023 for an identical number of securities to the number
specified in this notice. Mitsubishi UFJ Financial Group, Inc. states in its notice that it has voting power of 100% in First Sentier Investors Holdings Pty Limited;
as a consequence reference to the Subsidiary Notice is not included in the above table.
(c) 20 largest shareholders of quoted equity securities
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MUTUAL TRUST PTY LTD
BNPP NOMS PTY LTD HUB24 CUSTODIAL SERV LTD
ARGO INVESTMENTS LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
NETWEALTH INVESTMENTS LIMITED
CITICORP NOMINEES PTY LIMITED
CITICORP NOMINEES PTY LIMITED <143212 NMMT LTD A/C>
SANDHURST TRUSTEES LTD
CPU SHARE PLANS PTY LTD
BNP PARIBAS NOMS (NZ) LTD
NETWEALTH INVESTMENTS LIMITED
UBS NOMINEES PTY LTD
UBS NOMINEES PTY LTD
Total Top 20 shareholders
Balance of register
Total
Number
held
% of issued
shares
54,211,871
49,383,971
29,134,729
11,185,818
5,257,179
2,693,840
2,478,173
1,758,466
1,587,480
1,216,431
792,924
764,493
499,598
391,971
368,692
351,283
335,981
322,656
319,159
287,907
163,342,622
23,446,852
186,789,474
29.02
26.44
15.60
5.99
2.81
1.44
1.33
0.94
0.85
0.65
0.42
0.41
0.27
0.21
0.20
0.19
0.18
0.17
0.17
0.15
87.44
12.56
100.00
Iress LimitedStrategic ReportESGAnnual Report 2023 138
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139
Statement of use
Iress Limited has reported in accordance with the GRI Standards for the period 1 January 2023 to 31 December 2023. GRI 1: Foundation
2021 was used. There is no applicable GRI sector standard.
GRI Standard
Disclosure
GENERAL DISCLOSURES
GRI 2
General Disclosures 2021
2‑1
2‑2
2‑3
2‑4
2‑5
2‑6
2‑7
Organisational details
Entities included in the organisation's sustainability
reporting
Reporting period, frequency and contact point
Restatements of information
External assurance
Activities, value chain and other business relationships
Employees
2‑8
Workers who are not employees
2‑9
2‑10
2‑11
2‑12
2‑13
2‑14
2‑15
2‑16
2‑17
2‑18
2‑19
2‑20
2‑21
2‑22
2‑23
2‑24
Governance structure and composition
Nomination and selection of the highest governance body
Chair of the highest governance body
Role of the highest governance body in overseeing the
management of impacts
Delegation of responsibility for managing impacts
Role of the highest governance body in sustainability
reporting
Conflicts of interest
Communication of critical concerns
Collective knowledge of the highest governance body
Evaluation of the performance of the highest
governance body
Remuneration policies
Process to determine remuneration
Annual total compensation ratio
Statement on sustainable development strategy
Policy commitments
Embedding policy commitments
Page/reference/further information
Pages 4, 137. Iress Limited
Page 4. Iress Limited is the only entity included in this report
Reporting period: 1 January – 31 December 2023
Contact point: Amarjot Bagga, Head of Environment and
Social Impact. amarjot.bagga@iress.com
Environmental activity data and emissions calculations
from FY19 to FY22 have been re‑issued due to changes
in the methodology and reporting boundary to align with
best practice
External assurance has not been undertaken for the
environmental, social & governance (ESG) sections of
this report
Pages 4, 5, 34–35
Pages 4, 22, 23, 28–32. Iress made the difficult but
necessary decision to reduce headcount by approximately
21% in 2023 to restore profitability and improve efficiency.
Data has been compiled using internal management
systems.
Pages 28, 30. Iress does not employ contractors that
are considered to complete a significant portion of the
company’s activities. Contractors primarily provide
product and technology support. Iress made the
difficult but necessary decision to reduce headcount by
approximately 21% in 2023 to restore profitability and
improve efficiency. Data has been compiled using internal
management systems
See Corporate Governance Statement and page 38
See Corporate Governance Statement and Board Charter
Pages 42, 50. Roger Sharp is the Chair of Iress' Board of
Directors. Roger Sharp is a non‑executive director
See Corporate Governance Statement and Board Charter
See Board Charter
Iress' Board of Directors has reviewed and endorsed
this report
See Conflicts of Interest Policy
Pages 38–39, 44–55
Pages: 42‑43. See Corporate Governance Statement
See Corporate Governance Statement
Pages 52–81. See Corporate Governance Statement,
Board Charter
Pages 52–81. See Corporate Governance Statement,
Board Charter
Information currently not calculated.
Pages 6–9, 12
Pages 6–9, 12, 15–16, 21, 23, 33–34, 37. See corporate
governance policies and procedures
Page 39. See Code of Ethics and Conduct Policy
GRI Standard
Disclosure
Page/reference/further information
2‑25
2‑26
2‑27
2‑28
2‑29
2‑30
Processes to remediate negative impacts
Mechanisms for seeking advice and raising concerns
Compliance with laws and regulations
Membership associations
Approach to stakeholder engagement
Collective bargaining agreements
Pages 15–18, 26–27, 33, 35, 39
Page 39
No significant instances of non‑compliance with laws
and regulations during the reporting period. No fines for
instances of non‑compliance with laws and regulations paid
during the reporting period
Page 39
Pages 13, 21, 33–35
Not applicable. No Iress employees are employed on
collective bargaining agreements
Material topics
GRI 3
3‑1
3‑2
Material Topics 2021
Process to determine material topics
List of material topics
SPECIFIC DISCLOSURES
Customer experience
GRI 3
3‑3
Material Topics 2021
Management of material topics
Ethics and integrity
GRI 3
3‑3
GRI 207
207‑1
207‑2
207‑3
207‑4
Material Topics 2021
Management of material topics
Tax 2019
Approach to tax
Tax governance, control, and risk management
Stakeholder engagement and management of concerns
related to tax
Country‑by‑country reporting
Data privacy and cyber security
GRI 3
3‑3
GRI 418
418‑1
Material Topics 2021
Management of material topics
Customer Privacy 2016
Substantiated complaints concerning breaches of
customer privacy and losses of customer data
Transparent, fair, and responsible product information/advice
GRI 3
3‑3
417‑1
Material Topics 2021
Management of material topics
Requirements for product and service information
and labelling
Incidents of non‑compliance concerning product and
service information and labelling
417‑2
417‑3
Incidents of non‑compliance concerning marketing
communications
Page 13
Page 13
Pages 1, 6–9, 12–13, 17–18, 23, 33, 38–39
Pages 34, 38–39
Page 39. See Tax Transparency Report
See Tax Transparency Report
See Tax Transparency Report
Not applicable. Iress Limited does not meet the definition of a
Significant Global Entity (i.e. turnover >$1bn)
Page 39
No instances of substantiated complaints concerning
breaches of customer privacy and losses of customer data
recorded during the reporting period
Pages 5, 39
Not applicable. Iress does not produce physical products,
no product disclosure statements produced
No instances of non‑compliance concerning product and
service information and labelling recorded during the
reporting period
No instances of non‑compliance concerning marketing
communication recorded during the reporting period
Talent attraction and retention, employee engagement
Material Topics 2021
GRI 3
Management of material topics
3‑3
New employee hires and employee turnover
401‑1
Benefits provided to full‑time employees that are
401‑2
not provided to temporary or part‑time employees
Parental leave
401‑3
Pages 9, 21, 23. See Careers webpage
Page 29
Pages 3, 22, 33. See Benefits webpage.
Page 32
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Financial Report
141
GRI Standard
Disclosure
Page/reference/further information
GRI Standard
Disclosure
Page/reference/further information
403‑3
403‑4
403‑5
403‑6
403‑7
403‑8
403‑9
403‑10
409‑1
Occupational health, safety, and wellbeing
GRI 3
3‑3
403‑1
403‑2
Material Topics 2021
Management of material topics
Occupational health and safety management system
Hazard identification, risk assessment, and incident
investigation
Occupational health services
Worker participation, consultation, and communication on
occupational health and safety
Worker training on occupational health and safety
Promotion of worker health
Prevention and mitigation of occupational health and
safety impacts directly linked by business relationships
Workers covered by an occupational health and safety
management system
Work‑related injuries
Work‑related ill health
Modern slavery and forced labour
GRI 3
3‑3
408‑1
Material Topics 2021
Management of material topics
Operations and suppliers at significant risk for incidents of
child labour
Operations and suppliers at significant risk for incidents of
forced or compulsory labour
Climate change adaptation and resilience
GRI 3
3‑3
305‑1
305‑2
305‑3
305‑4
305‑5
305‑6
Material Topics 2021
Management of material topics
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions
Emissions of ozone‑depleting substances (ODS)
305‑7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other
significant air emissions
Responsible advertising
GRI 3
3‑3
GRI 417
417‑1
417‑2
417‑3
Material Topics 2021
Management of material topics
Marketing and Labeling 2016
Requirements for product and service information and
labeling
Incidents of non‑compliance concerning product and
service information and labeling
Incidents of non‑compliance concerning marketing
communications
Pages 21–22
Page 22
Page 22
Page 22
Page 22
Page 22
Page 22
Not applicable. Given the nature of the products sold by
Iress, no significant negative OH&S impacts linked with
operations, products or services have been identified and/or
needed mitigation
Pages 22, 28
Pages 22, 28
Pages 22, 28
Pages 33–35
Pages 33–35
Pages 33–35
Pages 12, 15–18
Page 18
Page 18
Page 19
Pages 18–19
Pages 15–19
Not applicable. Iress does not produce, import or export
ozone‑depleting substances
Not applicable. Iress activity does not result in emission of
these substances
Page 39
Not applicable. Iress does not produce physical products, no
product disclosure statements produced
No instances of non compliance concerning product and
service information and labeling recorded during the
reporting period
No instances of non compliance concerning marketing
communication recorded during the reporting period
308‑2
414‑1
414‑2
Responsible and sustainable procurement
GRI 3
3‑3
308‑1
Material Topics 2021
Management of material topics
New suppliers that were screened using environmental
criteria
Negative environmental impacts in the supply chain and
actions taken
New suppliers that were screened using social criteria
Negative social impacts in the supply chain and
actions taken
Economic growth
GRI 3
3‑3
201‑1
201‑2
201‑3
201‑4
Material Topics 2021
Management of material topics
Direct economic value generated and distributed
Financial implications and other risks and opportunities
due to climate change
Defined benefit plan obligations and other retirement plans
Financial assistance received from government
204‑1
Proportion of spending on local suppliers
Anti-corruption
GRI 3
3‑3
205‑1
205‑2
205‑3
Material Topics 2021
Management of material topics
Operations assessed for risks related to corruption
Communication and training about anti‑corruption policies
and procedures
Confirmed incidents of corruption and actions taken
Waste and resource efficiency
GRI 3
3‑3
301‑1
Material Topics 2021
Management of material topics
Materials used by weight or volume
301‑2
301‑3
GRI 302
302‑1
302‑2
302‑3
302‑4
302‑5
GRI 306
306‑1
306‑2
306‑3
306‑4
306‑5
Recycled input materials used
Reclaimed products and their packaging materials
Energy 2016
Energy consumption within the organization
Energy consumption outside of the organization
Energy intensity
Reduction of energy consumption
Reductions in energy requirements of products
and services
Waste 2020
Waste generation and significant waste‑related impacts
Management of significant waste‑related impacts
Waste generated
Waste diverted from disposal
Waste directed to disposal
Pages 33–35
Pages 34–35
Real‑time monitoring of all non‑government suppliers,
including financial stability, adverse media (environmental,
labour, health & safety, ethical & regulatory media),
sanctions, and company sustainability credentials
All new suppliers must complete our supplier due diligence
questionnaire
No negative impacts identified in the supply chain in 2023
Pages 6–9
Pages 2–3, 46–49
Pages 16–17
Iress does not have a defined benefit plan
Iress received $1,207,523.77 of government financial
assistance comprised of $1,169,673 in Australia, $24,700.58
in South Africa & $13,150.19 in Singapore
Pages 34–35
Page 39
Pages 38–39
Page 39
No instances of corruption recorded during the reporting
period
Page 18
Not applicable. Iress does not produce or sell any
physical products
Not applicable. Iress does not produce or sell any
physical products
Not applicable. Iress does not produce or sell any
physical products
Pages 18–19
Page 19
Pages 18–19
Pages 15, 18–19
Pages 15, 18–19
Page 19
Page 19
Page 19
Page 19
Page 19
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GRI Standard
Disclosure
Page/reference/further information
Diversity, equity, and inclusion
GRI 3
3‑3
405‑1
405‑2
GRI 406
406‑1
Material Topics 2021
Management of material topics
Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men
Non-discrimination 2016
Incidents of discrimination and corrective actions taken
MATERIAL TOPICS WITH NO RELATED GRI DISCLOSURES
Page 23
Pages 23, 28–32
Page 32
No incidents of discrimination and corrective actions taken
during the reporting period
Product/service quality
GRI 3
3‑3
Material Topics 2021
Management of material topics
Innovation
GRI 3
3‑3
Material Topics 2021
Management of material topics
Culture and values
GRI 3
3‑3
Material Topics 2021
Management of material topics
Risk management
GRI 3
3‑3
Material Topics 2021
Management of material topics
Industry leadership and engagement
GRI 3
3‑3
Material Topics 2021
Management of material topics
Pages 5–9
Page 9
Pages 1, 23
Pages 17, 38, 44–45
Pages 17, 38, 44–45
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