Annual Report 2024 Outstanding GovTech driving stronger communities and nations OUR PURPOSE Outstanding GovTech driving stronger communities and nations OUR AMBITION Unparalleled domain expertise. Be number 1 in our markets. Maintain profitable growth. Annual Report 2024 Objective Corporation Limited and its Controlled Entities CONTENTS 2 Financial Highlights 2 CEO’s Report 8 Business Line Review 14 Sustainability Report 20 Directors’ Report 27 Financial Statements 32 Notes to the Financial Statements 64 Consolidated Entity Disclosure Statement 65 Directors’ Declaration 66 Independent Auditor’s Declaration 67 Independent Auditor’s Report 73 Shareholder Information 75 Corporate Directory CEO’s Report Business Line Review Sustainability Financial Statements 1 Financial Highlights Letter to Shareholders Fellow Shareholders, It is with pleasure I share with you Objective’s performance for the Financial Year 2024 (FY2024); a year which marked a significant number of milestones and one where we evolved rapidly to meet the growing opportunities in front of us. Within an industry where continual change is the standard operating procedure, our unwavering commitment to deliver #outstanding, innovative products and experiences underscores the strength of our business as a high-quality solution provider to our customers, an employer of choice for our people and long-term investment proposition for our shareholders. As a business, the success we have achieved has given us more fuel to expand the opportunities for modern, digital governments globally and the communities they serve. Internally, we are operating at an increased pace; we’re together more regularly as a team, and with customers, driving more valuable interactions and innovation. In FY2024, our revenue of $118 million was driven by a record 81% recurring revenue and marked the completion of our transition to a subscription only software business. Again, we invested 30% of our software revenues in research and development (R&D) and at the same time generated a 49% lift in profitability and 78% rise in operating cashflow growth (on a like for like basis). Our low churn, recurring revenue model and ability to manage investment in our cost base gives us strong levers to generate consistently profitable growth over long periods of time. Group Revenue EBITDA Operating Cash Flow Dividend Annualised Recurring Revenue (ARR) Net Profit After Tax Cash $118m 6% Growth $44m 66% Growth $56m 127% of Adjusted EBITDA 17cps 8cps Fully Franked $105m 11% Growth $31m 49% Growth $96m 32% Growth Objective Corporation Limited and its Controlled Entities Annual Report 2024 2 We achieved a solid Software as a Service (SaaS) Annual Recurring Revenue (ARR) growth rate of 15% in FY2024 and our total ARR grew by 11% to $105 million. This fell short of our targeted 15% total ARR growth for the year as we were impacted by the late deferral of several expected material opportunities. I will not fault our go-to-market teams on customer decision delays that are well outside of their control, and we are too disciplined to accept uneconomic terms to artificially drag revenue forward. With hindsight we could have anticipated the softer economic conditions in New Zealand leading to even softer numbers of building consents in that market, where we have a pure transaction-based revenue model. As you will see in our financial statements, whilst SaaS growth is very solid, lower margin services revenue has moderated, by design, as we have become more efficient at deployment. This has been great for customers albeit not so good for our headline revenue number, as we passed on material savings to our customers. However, looking to FY2025, project services revenue is likely to grow again, purely as a function of the anticipated SaaS growth rate. We have a strong conviction that a 15% overall ARR growth target remains the right goal for our business. FY2024 Highlights EXPANDING ADDRESSABLE MARKET During FY2024, we successfully executed against our plan to expand the addressable market for each of our core solutions. We now have multiple, deep market segments where we are the market leader or emerging leader and where this presents a significant organic growth opportunity for us. This is not a happy accident – we have seen the opportunity ahead of us, invested to make it a reality, and have expanded our addressable market through product innovation and into new geographies. Product Innovation Deeply ingrained in our DNA is our mission to deliver #outstanding software to our customers. Product innovations through FY2024 enabled us to respond to new and emerging challenges faced by our customers, expanding our addressable market across all business lines. Addressing these previously untapped opportunities attracted new customers and drove further investment by existing customers. Tony Walls CEO, Objective Corporation 3 CEO’s Report Business Line Review Sustainability Financial Statements Objective Nexus customers have begun embracing the conversion from Objective ECM to the cloud based Objective Nexus with conversions currently averaging a 2.1x value uplift. The value proposition for customers is compelling and we expect the rate of conversion to increase in FY2025. Objective 3Sixty, within our Content Solutions suite, enables us to target organisations with non-Objective content management systems and other transactional systems of record. Rather than requiring a sometimes unappealing lift and shift approach, Objective 3Sixty can work with any system to expand governance over information that resides anywhere within an organisation, opening a new market segment for our Content Solutions suite. Objective RegWorks welcomed new customers across an expanded set of use cases including natural resource regulation and services boards of medical professionals. This demonstrates the success of the investment we have made in improving the configurability of the platform and the ability to more rapidly deploy into customer sites at lower cost. Each new use case deployment significantly expands the addressable customer set for the solution, bolstered by customer references and demonstrating the value it delivers. Objective Build launched an Inspections capability which rounds out our ability to target the largest metropolitan councils. This provides building inspectors with smart, time-saving capabilities such as geospatial map references, comprehensive checklist records and photographic evidence that enables them to efficiently conduct building specific on-site inspections, critical to ensuring regulation-compliant building practises. Objective Keystone released functionality specifically targeted to address the growing market for climate related financial disclosure. We targeted this use case as new disclosure regulations came into play in New Zealand and secured a major financial services institution as a foundation customer. This has generated interest from other NZ based companies, and we expect demand to grow as pressure mounts for mandatory climate risk reporting in Australia and other countries. Objective Keystone has established itself as the solution of choice for 17 of the 25 largest Australian superannuation funds. New Geographies In the United Kingdom, we signed our first contract for Objective RegWorks; a $3.4 million, six year contract with the Gambling Commission in Great Britain. This milestone represents the culmination of two years of market development, engaging with UK based regulators and industry bodies to demonstrate the deep domain expertise we bring from our success in the Australian and New Zealand markets, and a strong value proposition in purpose-built software for regulators, compared to generic platform solutions that attempt to address this sector. Globally, we’ve been engaging with local planning authorities, to deepen our understanding of the challenges faced in geographies outside of New Zealand. Two common themes emerged: the pressure to respond to growing volumes of assessments within tight timeframes and the level of regulation to be applied to each application. We have worked within the building regulation eco-system over many years to develop a modern, adaptable and secure SaaS solution that addresses this market and we are very excited by the opportunities this presents in many new territories. Perhaps not entirely new, but equally important, has been our on-going progress with new customers using Objective 3Sixty in The Americas and more recently in the UK. Since Simflofy joined our family in 2022, we have made a transformative investment in the technology, and it now forms a strategic component in almost every Content Solutions opportunity globally whether part of our Nexus suite or on a standalone basis. DELIVERING INNOVATION In FY2024 we invested a record $28 million into R&D, 30% of our software revenue. Across leading global SaaS businesses, this level of investment consistently represents the optimum investment level to sustain the growth engine of a company. Beyond a steady release of new capabilities and features to delight our customers, our focus on innovation is underpinned by the measures of customer value and quality. This is how we know we’re building and delivering #outstanding software. CEO’s Report continued 4 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Artificial Intelligence (AI) Elements of AI such as machine learning and computer vision have been embedded within Objective products for many years and they continue to evolve with market demand and customer needs. The market acceptance and investment in large language models (LLMs) for business applications is the latest evolution of this adoption cycle and one that Objective, with our heritage in storing, categorising and searching data, is uniquely positioned. For many of our customers, their ability to leverage AI within their organisation is balanced by the reality that they are the custodians of highly sensitive information and operate in regulatory environments where trust is paramount. Our experience of operating within these environments only increases the opportunity ahead of us. Additional use cases abound for applying more complex and robust AI across our portfolio, and we’re excited by the potential it brings to our own software development and the benefits it can deliver to customers. This year we will launch new AI capabilities utilising LLMs that can be embedded in any of our products or be used directly by our customers. Single, Seamless User Experience The 2024 generation of Objective IQ, an enhanced user experience (UX) based on a single, comprehensive design language is being rolled out to all Objective products. Built from a library of components that are reusable across our entire product suite and ready to accelerate the development of future products, it delivers a pixel-perfect, consistent and loveable user experience. Security Posture Our customers, who are responsible for managing some of the most confidential, sensitive, private and personal information in the world, place enormous trust in us and we take this trust extremely seriously. Investing in the security of our products and operations protects not only our customers and stakeholders, but also our own business continuity and reputation. In addition to maintaining all of our existing security credentials, Objective Nexus was assessed and certified to the Australian IRAP compliance framework for information security within the Australian government. It joins Objective Connect as a certified product and we have more products queued for assessment over the coming year. Our ongoing investment in security is sacrosanct. We monitor for emerging threats around the clock, ensuring that our products and services remain trusted and reliable for the most critical missions. A Clear & Consistent Future Strategy REGULATION IS A GROWTH INDUSTRY Open any mainstream, business or industry- specific news feed and there will be articles, often pinned to the top of the page, demonstrating the demand for greater government regulation to address emerging threats and challenges, exposés of unethical or illegal actions by organisations we want to trust and incidents of information security threats. Objective’s solutions help the organisations that operate in these regulated environments or are in fact the regulators themselves; efficiently meet the regulatory demands placed upon them by government and society. Our customers are councils and planning authorities setting the standards for our built environments; the public sector that delivers the services our communities rely upon; they are the institutions that uphold peace, justice and the law; the companies that manage our wealth ethically and responsibly; they are the agencies that protect our national security, our safety, and our livelihoods. “ In FY2024 we invested a record $28 million into R&D, 30% of our software revenue. Across leading global SaaS businesses, this level of investment consistently represents the optimum investment level to sustain the growth engine of a company. ” Tony Walls CEO, Objective Corporation 5 CEO’s Report Business Line Review Sustainability Financial Statements Permanent Demand Drivers Wherever government exists, so too does the need for our solutions; and that demand is only increasing. Since 2020, government’s role in the community has increased, as demonstrated in Australia by government spend on employee costs, across all levels of government, reaching an average of 10% of GDP per year, representing an increase of $50 billion per annum. As government is called upon to regulate more aspects of community life, it faces growing expectations for efficient, effective, and transparent operations, of both the government itself and the industries it regulates. The scrutiny faced by these organisations has never been higher. These factors compel action; to seek solutions that deliver the ability to manage escalating volumes and diversified sources of information, for solutions that help meet growing regulatory requirements, and for solutions that help government at all levels meet community expectations in an efficient manner. ALIGNED TO A COMMON STRATEGIC PLAN In preparation for FY2025 we adjusted our approach to our strategic planning process, providing greater linkage from all levels of the organisation to the mission that drives us. This has further clarified our operating playbook, giving us greater focus on the driving initiatives of each line of business, and greater clarity to each of our 450 employees about what they can do to make a difference. While our planning process has evolved, the guiding principles central to our strategy remain unchanged, they are the ambitions that have guided our thinking and decisions to build Objective into a global software company that surpassed the ARR milestone of $100 million this financial year; with more than 2,000 customers in 60 countries and 450 staff in 14 locations including five development labs. The analysis we’ve undertaken this year to articulate and document our strategy, means we know that these ambitions will deliver highly valued outcomes to our customers, differentiate us in the markets we target, and ensure a financially sustainable model for growth. Our Ambitions Unparalleled Domain Expertise – we are not just another software vendor; we are experts in our field and trusted advisors. We build our teams with people from our target market, who understand the issues that our customers face, and results in very deep customer engagement. In turn, this translates into highly targeted and differentiated solutions and roadmaps for our products, that we have the utmost confidence in. Number 1 in our Markets – software is a game of meritocracy, and we target market segments where we can be the leader. This leadership generates strong network effects amongst customers that channels industry-led thinking into product innovation, fosters peer-to-peer relationships for sharing new use cases, and improving processes, along with a greater propensity to provide strong reference-based successful customer outcomes. Profitable Growth – our flywheel of innovation is based on our ability to continue to invest in our people, our technology, our customers, and our growth. To do this, we need to not only grow our business but to ensure that we operate a business model that allows us to expand profitably. We balance revenue growth and profit margin to reliably deliver strong profitability and free cashflow – this allows us the freedom to continuously re-invest. NEW APPROACHES TO DELIVERING RESULTS To reach our goals for FY2025 and deliver on our strategic plan, we took the magnifying glass to existing practices and implemented changes where we needed to continue to deliver outstanding results. New People Throughout FY2024 we actively placed new people in leadership roles, injecting a new energy and new dynamic to the organisation. Some were internal promotions, proving the success of our leadership development programs, and others came from market scans that uncovered a wealth of talent in the job seeker market that we leveraged to bolster our team. CEO’s Report continued 6 Annual Report 2024 Objective Corporation Limited and its Controlled Entities New Approaches Team Structures – we have made changes to teams across the business to better deliver against our priorities. We’ve applied playbooks from our Content Solutions business to Regulatory Solutions to prepare them to scale rapidly. We’ve refined sales team structures in all business lines to increase focus on new customer acquisition and we’ve implemented changes to the Planning & Building team to increase focus on solutions for new markets. Go to Market – we have adopted new approaches in our marketing efforts to increase the quality and velocity of opportunities through our pipeline. We have increased the investment in customer success teams for all products to ensure that our customers derive greater value from their solutions, raising the expected lifetime value of each new customer win. Local Government, a complete market approach – Objective has always had a strong market presence in local government and local government is becoming an increasingly important factor in the resolution of important societal issues globally, particularly in addressing housing shortages. For FY2025 we have restructured our go-to-market approach to bring consistency to our messaging and sharpen our value proposition to local government. Headed by an experienced, dedicated leadership team, we are positioned to meet the demand emerging from this sector and address new opportunities with a holistic suite of solutions that span the breadth of Objective. Further Outlook We are excited by the opportunity ahead of us in FY2025 and beyond. We remain confident that our overall ARR growth target of 15% is the right goal for us, and that our business model assures the growth achieved will drive an increased level of profitability. Our strong balance sheet and cash flow generation gives us significant flexibility to pursue organic and inorganic opportunities that meet our return on capital criteria. Achieving a sensible return on invested capital continues to be a challenging goal in a Private Equity fuelled tech market, particularly the US. During the past year, we investigated a significant number of acquisition opportunities across the US, the UK, and Australia. We completed detailed due diligence on several companies without concluding a transaction. The quest for the right opportunities for the intelligent deployment of capital continues. Equally, investing in organic growth with very modest capital demands, continues to deliver results. Our innovation led strategy has driven significant organic growth in our addressable market both in terms of use cases for Objective solutions and the geographic regions in which we can demonstrate them. Each line of business is a leader in its own market segment and we harbour strong growth ambitions that our employees are deeply committed to deliver. In conclusion, I would like to deeply and sincerely thank our incredible team of dedicated people. On a daily basis they apply their amazing talents to deliver #outstanding outcomes for our customers. As always, thank you for your trust and support. Tony Walls CEO, Objective Corporation “ Each line of business is a leader in its own market segment and we harbour strong growth ambitions that our employees are deeply committed to deliver. ” Tony Walls CEO, Objective Corporation 7 CEO’s Report Business Line Review Sustainability Financial Statements CONTENT SOLUTIONS Revenue ARR $80.3m 5% Growth $76.1m 10% Growth The Content Solutions portfolio allows organisations to discover, understand and enrich data; to control and manage information; and to transform information into action and insights. In FY2024, revenue in our Content Solutions business increased by 5% to $80.3 million (FY2023: $76.1 million). Closing ARR at 30 June 2024 increased by 10% to $76.1 million over the balance at 30 June 2023 ($69.0 million). In FY2024, total revenue growth in the business line was moderated by the strategic decisions to discontinue the historic PRTU licensing model and to redirect professional services capacity towards developing tools and processes that would facilitate the rapid migration of customers from on-premise solutions to Objective Nexus and support the roll out of Objective 3Sixty. Consolidation across the portfolio We rebranded Content Solutions products to simplify the market positioning of the portfolio as an integrated Information Governance platform that is positioned to meet customers’ current requirements and evolve with their future information governance strategy, including transitioning to the cloud. Beyond branding, we deepened integration between the products within the platform, leveraging established API infrastructure. This in turn accelerated development of low code/no code integration automation across Objective products and customers’ technology portfolio. Developing this framework in the Content Solutions portfolio has created an integration playbook which has been rolled out across other business lines. Objective Nexus is a complete, SaaS based information governance solution providing records compliance, enterprise scale information management and process automation. Business Line Review Objective Corporation Limited and its Controlled Entities Annual Report 2024 8 Objective Nexus gains momentum Adoption of Objective Nexus gathered momentum, with the customer base extending to 14, more than doubling the number of customers during FY2024. The Objective Nexus customer base now covers local, state and central governments, as well as regulated industries. This broad range of customers further establishes a strong base of referenceability for future opportunities. Conceptually evolved from Objective ECM, Objective Nexus is our next generation SaaS based platform providing records compliance, enterprise scale information management and process automation. Objective Nexus offers a cloud-first approach that facilitates a transition for existing customers and expands our addressable market for new customer opportunities. Objective 3Sixty embraces Artificial Intelligence In FY2024, Objective 3Sixty further evolved, becoming a cutting-edge unstructured Data Fabric platform; significant milestones included integrating AI capabilities, enhancing performance, and expanding use cases. Our unique AI-powered solution enables organisations to unlock insights from vast amounts of data without compromising on data confidentiality or relocation requirements. With automated features like redaction, Personally Identifiable Information (PII) detection, content enrichment, and data classification, Objective 3Sixty automates or vastly accelerates information management tasks and provides a single control pane for disparate data sources. Objective 3Sixty tames the data sprawl for organisations so they can discover, organise and manage enterprise information, from one place. Objective Connect evolves for high security environments Objective Connect added new customers in addition to cross-sell success with Objective RegWorks and Objective Build customers. Investment in R&D delivered user interface enhancements, particularly focused on supporting wider groups of users external to the customer organisation and developing functionality specific to organisations operating in high security environments including defence industries, expanding the addressable market for Objective Connect. Established as the leading secure external file sharing platform for the public sector, there is significant ongoing opportunity for Objective Connect. Customer success teams are focused on identifying additional use cases within existing customers together with introducing Objective Connect to customers of other Objective products. Objective Keystone extends market share Objective Keystone was further entrenched as an industry standard to produce investor targeted disclosure documents by adding eight new customers across the financial services sector, primarily superannuation funds. 17 of the 25 largest Australian Superannuation funds are now customers. Objective Keystone’s reach is extended by our network of sales partners. During FY2024 the separation of Objective Keystone and Objective Keyplan was completed, and all local government customers were migrated to Keyplan. This migration was supported by the release of additional functionality aligned to the UK Levelling-Up and Regeneration Act, including spatial based consultation, submissions management and AI decision support capabilities. During FY2024, we welcomed four new local government customers and invested further in our UK go-to-market team to support the expected levels of future demand. 9 CEO’s Report Business Line Review Sustainability Financial Statements In FY2024, revenue in our Planning & Building business increased by 5% to $12.3 million (FY2023: $11.7 million). Closing ARR at 30 June 2024 increased by 15% to $14.0 million over the balance at 30 June 2023 ($12.2 million). Revenue and ARR growth in the Planning & Building business line was tempered by a drop in development consent numbers in New Zealand, reflecting an overall lower level of building activity during FY2024. Objective Build processing applications at scale More than 40,000 new applications were recorded in Objective Build during FY2024, demonstrating the critical link our solution plays between local authorities and private sector organisations within the planning ecosystem, and the resilience of this platform at scale. We secured significant customer wins and upgrades across New Zealand including BCAL (New Zealand’s first private Building Consent Authority), New Plymouth District Council, and Clutha District Council. 11 Building Consent Authorities upgraded to Objective Build in FY2024, with a further 10 in a transitionary phase. Revenue ARR $12.3m 5% Growth $14.0m 15% Growth PLANNING & BUILDING The Planning & Building portfolio enables local government authorities to streamline the building assessment and consent process. Objective Build is a complete building consent management platform that delivers consistency, quality, transparency and efficiency for everyone involved in the building application process. Business Line Review Objective Corporation Limited and its Controlled Entities Annual Report 2024 10 R&D investment R&D investment for Objective Build, focused on supporting the requirements of larger metropolitan councils in New Zealand. We released 25 enhancements to the Objective Build Applicant module, enhancing the experience for all users and released the new Inspections application. This move extended functionality to consumer-grade personal mobile devices that can leverage modern camera technology and reduce device costs for customers, as well as providing a more scalable and secure infrastructure for our customers. Expansion of Objective Trapeze Objective Trapeze expanded its customer footprint amongst local councils in Australia, further extending market leadership in the segment. We now have 280 councils across Australia and New Zealand using Objective Trapeze to review and determine building consents, with more than 6 million development application documents assessed annually through our software. During FY2024, we extended the functionality to manage more of the consent process, including parking standards compliance and richer document annotation capabilities. We also developed and released pilot products in the UK, aligned to the Department of Levelling Up’s priorities funded under government schemes to accelerate the delivery of new housing and drive economic growth. Objective Trapeze provides planners and building surveyors within local government all the tools they need to assess, compare, annotate and approve digital plans, allowing them to assess development applications faster. 11 CEO’s Report Business Line Review Sustainability Financial Statements $22.2m 5% Growth $14.4m 11% Growth In FY2024, revenue in our Regulatory Solutions business increased by 5% to $22.2 million (FY2023: $21.1 million). Closing ARR at 30 June 2024 increased by 11% to $14.4 million over the balance at 30 June 2023 ($13.0 million). Technical investment in Objective RegWorks increased the scalability of the platform allowing us to target enterprise- scale sales opportunities in FY2024. These enhancements offer a greater return on sales capacity investment but have predominately been weighted towards a Q4 decision-making point in the financial year, which moderated the recognised revenue growth in FY2024 but delivered a strong ARR growth result positioning us well for FY2025. First UK customer signed A milestone achievement in FY2024 was Objective RegWorks being selected as the SaaS solution of choice to futureproof gambling regulation across Great Britain through digitisation. The deal, signed with an initial six-year term, has a total contract value of A$3.4 million and demonstrates the strong opportunity for Objective’s regulatory solutions outside Australia and New Zealand. We continued to invest in UK market growth throughout the year, and in 2HY2024 published of the UK Government Regulatory Technology Report in partnership with the UK Institute of Regulation. REGULATORY SOLUTIONS Revenue ARR Regulatory Solutions enables regulators to implement best-practice regulation for fair, safe and sustainable community outcomes. Business Line Review Objective Corporation Limited and its Controlled Entities Annual Report 2024 12 Objective RegWorks Regulators track and administer the entire compliance process from a centralised, cloud platform. Increased breadth of use cases Objective RegWorks was selected by new customers across a diverse range of regulatory functions, highlighting the flexibility and configurability of the platform to new use cases. During FY2024 new customer wins outside of the UK, included the NSW Natural Resources Access Regulator; Physiotherapy Board of New Zealand, and the Victorian Social Services Regulator. Platform innovations Investment in the Objective RegWorks platform delivered innovations that support the adoption for expanded use cases. We enhanced the UX and improved accessibility, to ensure our platform remains intuitive and inclusive for all users. We made significant configurability improvements, enabling more efficient deployments of Objective RegWorks and streamlined “in-life” management of the solution. The new Reporting Centre has been well-received by customers, providing them with unparalleled visibility into their regulatory actions to support data-driven decision-making. Building on this momentum, we invested in native AI capabilities including sentiment analysis using Objective tools, to further enhance the operational efficiency of our customers. New delivery model for rapid adoption Leveraging our deep industry expertise, we adopted a new delivery model in FY2024, improving time to value for customers and reducing life-time cost of ownership. Development and rollout of this new delivery model, named the Accelerator solution, required allocating services capacity to develop tools that standardise Objective RegWorks product configurations for specific end markets. The result is out-of-the-box best-practice models for rapid deployment and adoption by customers. Using Objective RegWorks, inspectors collect evidence in the field, such as: images, documents, geolocation, timestamps and statements. 13 CEO’s Report Business Line Review Sustainability Financial Statements Sustainability Report Objective is committed to making a positive impact for our people, our customers, the community and our planet. Objective Corporation Limited and its Controlled Entities Annual Report 2024 14 We are passionate about the role we can play to help address climate change. Our ambition is for our global operations to become Net Zero or Carbon Neutral. In FY2024, we baselined our Scope 1 and Scope 2 emissions to ensure we can track our progress to this goal into the future. We are already demonstrating progress with changes we have implemented in our business operations. Targeting Emission Reductions During FY2024, we benchmarked our Scope 1 and Scope 2 emissions for FY2023 at 348 tonnes of CO2-e, in accordance with the Greenhouse Gas Protocol. Global emissions for Objective were independently measured by Pangolin Associates. We are currently not able to fully measure our Scope 3 emissions (both upstream and downstream) and are developing that capability with assistance from our external advisors. In FY2025, we aim to offer a more comprehensive perspective on our impact and enhance our climate initiatives. Initially, we will expand our emissions inventory to include Scope 3 emissions, moving beyond our current Scope 1 and 2 measurements. This will enable us to set an appropriate carbon reduction target that aligns with the targets of the Intergovernmental Panel on Climate Change. Environment Waste Management Beyond general waste management and recycling facilities in each of our offices, as a tech company, minimising e-waste is the area where Objective can have the greatest impact. We reduce our e-waste footprint through a number of initiatives: ■Direct acquisition of technology equipment – Objective purchases and supplies our employees with high quality IT equipment, favouring sourcing from manufacturers with stated ambitions to achieve net zero by 2050 or before. Our direct purchasing model gives Objective greater control over the choice of supplier and lifecycle of technology equipment. ■Repurposing of technology equipment – for items that have reached the end of their useful life in our operations, we offer staff the opportunity to purchase the equipment through auctions, donating the proceeds to charity and saving hardware from going to waste management. ■E-waste recycling – Objective actively participates in e-waste recycling programs to dispose of technology equipment that is not suitable for repurposing. In FY2024 we recycled approximately 500kg of e-waste equipment. Energy Consumption The primary source of Objective’s carbon emissions is derived from energy consumed within our office environments. To minimise energy use we select offices with high sustainability ratings and cloud service providers that align with the achievement of our environmental goals. SUSTAINABLE BUILDINGS The majority of our Australian offices are rated 5 stars by NABERS (National Australian Built Environment Rating System). Our largest office and global headquarters in Sydney, where we’ve made a long-term commitment, is rated 6 stars by NABERS. Our primary office in the United Kingdom, has an Energy Performance Certificate (EPC) rated B (on the scale from A to G, where A is the most efficient and G is the least efficient). DATA CENTRES Our SaaS solutions are delivered through Amazon Web Services (AWS) and Microsoft Azure data centres. AWS and Microsoft both have a goal to power their operations with 100% renewable energy by 2025, as well as setting ambitious targets for water consumption, waste reduction and the environmental impact of building and maintaining their facilities. Travel and Commuting Our customers and employees are geographically dispersed, so travel is a fundamental part of how we conduct business. To reduce the contribution of travel to our carbon footprint, we take a disciplined approach approving travel for employees, with systems and processes in place to validate responsible reasons for any inter-state and international bookings. Our flexible working policy also means many employees work from home some days each week; reducing emissions from commuting. 61 Scope 1 287 Scope 2 FY2023 Scope 1 and 2 Emissions – (tCO2-e) 348 tCO2-e 15 CEO’s Report Business Line Review Sustainability Financial Statements Social Objective’s culture, underpinned by our mission and our values, remains a key contributing factor for why people join and stay at Objective. This is reflected regularly in our engagement surveys. Diversity, Equity and Inclusion We brought our diversity strategy to life this year, launching Objective Belong, a program that formalises our commitment to creating and nurturing a diverse and inclusive workplace culture. A key component of Objective Belong was a comprehensive review of our recruitment and development processes. Our efforts resulted in an increase in the number of female applicants and new hires and improved representation in promotions. We also introduced OWN – Objective Women’s Network – with the goals of advocating for women and advancing the personal and professional development of members. This has been extremely well received by our female population with regular attendance, contributions and an increase in the female engagement result. Our Gender Pay Gap information was published for the first time this year, at 14.9% for the median total remuneration. We remain focused on reducing the gap, and know that having more women in senior roles will address this. In addition to our Emerging Leaders program, we supported 10 women to participate in the external leadership development program, Women Rising. We were also accredited as an Endorsed Employer for Women by Work180 and based on our actions over the course of the year, saw our score improve. During the year we conducted mandatory formal training for Bullying and Harassment and Respect at Work to continue to raise awareness of what behaviours contribute to an effective working environment. We celebrate cultural diversity each year by hosting events and celebrations that include: Mānawatia a Matariki (Māori New Year), Diwali, Lunar New Year and Harmony Day where we share national dishes from the nations represented at Objective; and many more. 6.4 Years Up from 5.8 years in FY2023 Duration – Average Tenure 53% Distribution 38% Research & Development 9% General & Administration 71% Male 29% Female Role Gender 16 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Professional Development We actively support our people to reach their potential at Objective and offer a range of learning and development programs to achieve this. We offer ongoing education within disciplines, access to LinkedIn Learning for all employees, we support employees seeking new challenges, new roles or a new discipline with the Boomerang Program and invest in our future leaders by running the Emerging Leaders Program each year. A highlight of the year was bringing all our people together in two global hubs – Reading, UK and Sydney, Australia – for our annual employee conference, Activate 24. Beyond sharing our FY2025 strategy and plans, our teams extended their skills and knowledge of our products in two days of immersive learning, networking experiences and having fun. At Activate we also celebrate the success of our people, our culture and our business. Our annual awards ceremony recognises outstanding achievements our people have made during the year with awards presented based on our six core values, as well as Rookie of the Year, a People’s Choice and the CEO Leadership awards. Wellbeing Ensuring well-rounded employee wellbeing is pivotal to fostering a thriving work environment. We offer a formal mental health program through our Employee Assistance Program, Objective Assist where employees and their families can access professional counselling. We also support Mindful in May, RU OK Day, Men’s Health Awareness, and Mental Health Awareness Month where our employees openly share their experiences and vulnerability with others. We regularly support fitness challenges that are sponsored by Objective including City2Surf, Wollongong Running Festival, 57 Squat Challenge and Steptember. Supporting Charities Objective Gives Back is a dedicated program that offers our employees a paid day each year to volunteer their time at charities and not-for-profit organisations. Often, these are organised by each regional office, for example, in Sydney, teams spent time making sandwiches for disadvantaged children in Sydney and our Perth office helped fix bikes to be distributed to people in Africa. Throughout the year, people from all of our office locations advocate for charities near to their heart and host events to raise money. In FY2024 we raised money for: the Cancer Council, Mark Hughes Foundation, CareSouth and Cerebral Palsy Alliance in Australia; Relay for Life, Pink Ribbon and Movember in New Zealand; and the Cowshed Christmas Tree in the UK. Every dollar raised by employees is then matched by Objective. 17 CEO’s Report Business Line Review Sustainability Financial Statements Governance Integrity is one of our core values at Objective. We are committed to operating at the highest levels of ethical and professional standards across our whole business. Our governance framework is aligned to our purpose and our values and reinforced throughout our operations. Our Corporate Governance Statement and investor webpage provide full details of corporate governance policies and charters. Each year we build upon the standards we held ourselves to in the past. Our Board provides oversight of corporate governance and risk management, and our senior management team shares the responsibility for the implementation and monitoring of actions across the organisation. Our company policies are available on internal systems and a sub-set shared with the public via our website. Each year we are reassessed against ISO standards 27001 for information security management and 9001 for quality management. Communication Over the course of each year, we reinforce our commitment to well governed processes and procedures through monthly, whole-of-company updates and the annual all staff event, Activate to ensure all employees are clear in their understanding of business plans, at the Objective level, and at the business line level; and know how they contribute to the strategic vision. Risk Management During FY2024 we evolved our strategic planning process, bringing increased rigour and accountability to planning across all business lines. Forming the overarching message and structure at Activate 24, every individual at Objective understands the vision, the priorities and their plans to action for the year ahead; to work together to reach our shared ambition. This enhanced strategic planning framework provides additional insights into our operations to the Board of Directors to more effectively manage risks that arise in our business. Security Cybersecurity and data privacy are of critical importance to all of Objective’s stakeholders; particularly our customers. From government and regulated industries, our customers are responsible for managing some of the most confidential, sensitive, private, and personal information in the world. With most of our solutions now delivered as SaaS, we in turn take the responsibility of managing our customers’ solutions and data extremely seriously. We have invested heavily in security policies, programs and processes to minimise security risks. These are constantly monitored and regularly reviewed. A proportion of our staff maintain a range of government security level clearances and all of our employees complete mandatory security training at regular intervals during the year. We maintain international, Australian and UK government- specific certifications and assessments for our products and company: ■ISO 9001 – Quality Management System: for all Objective operations. ■ISO 27001 – Information Security Management System: for all Objective operations. ■Infosec Registered Assessor Program (IRAP): Objective Connect and Objective Nexus are assessed to manage up to PROTECTED level documents as defined in the Australian Signals Directorate’s Information Security Manual. ■Cyber Essentials Plus: covering Objective’s UK operations. ■Defence Industry Security Program (DISP): as a member of this program, Objective meets security obligations when engaging in Defence projects, contracts and tenders. 18 Annual Report 2024 Objective Corporation Limited and its Controlled Entities “ All employees are clear in their understanding of business plans, at the Objective level, and at the business line level; and know how they contribute to the strategic vision. ” 19 CEO’s Report Business Line Review Sustainability Financial Statements The Directors of Objective Corporation Limited (‘the Company’) present the Annual Report of the Company and its controlled entities (collectively ‘the Group’) for the year ended 30 June 2024. Directors The names and details of the Company’s directors in office during the financial year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated: MR TONY WALLS Chairman and Chief Executive Officer Tony founded the business in 1987 and has extensive experience in the IT industry. Tony has a B.Math (Computing Science), a Grad.Dip in Applied Finance (SIA) and is a Fellow of the Australian Institute of Company Directors. MR NICK KINGSBURY Independent Non-Executive Director Nick was appointed as a Non-Executive Director in July 2008 and is the Chair of the Audit Committee. Nick is an experienced international software entrepreneur, strategist and venture capitalist. Nick founded, led and then sold a leading UK Business Process Management company. Nick then spent seven years with the international venture capital company 3i, where he headed up the software sector. From October 2011 to June 2015 he chaired a UK AIM listed cyber security company Accumuli, plc, which was successfully sold to NCC Group. As well as his role with Objective, he is a Partner with the venture capital firm Amadeus Capital Partners and sits on the boards of several early-stage technology businesses. MR DARC RASMUSSEN Independent Non-Executive Director Darc was appointed as a Non-Executive Director in August 2018. Darc is a seasoned enterprise software professional with over 25 years’ experience successfully building and growing Software as a Service (SaaS) and Cloud based businesses across global markets. Darc spent time working and living in Europe, the USA and Asia/Pacific growing public and private companies including Infor, SAP, IntraPower (Trusted Cloud) and Integrated Research. Darc led the SAP (NYSE:SAP) global CRM Line of Business, building it from start-up to total annual revenues of US$1.5 billion in 2007, establishing SAP as the global leader in the CRM market. He was CEO at Integrated Research (ASX:IRI) and led the company through a whole of business transformation strategy that delivered 70%+ growth in Revenue and Profits along with a tripling of the company’s market capitalisation. During Darc’s tenure IR was named a Gartner “Cool Vendor” and became the global leader in the Unified Communications Performance Management market. Darc was appointed as non-executive director of Gentrack Group Limited (NZX/ASX : GTK) on 12th December 2019 and joined the board of Urbanise.Com Ltd (ASX:UBN) on 18 April 2023. MR STEPHEN BOOL Non-Executive Director Stephen joined the Board in January 2022, after 17 years with Objective Corporation Limited in senior leadership positions, most recently as Chief Operating Officer for over five years. In that time, Stephen made important contributions across the entire organisation, helping shape the culture and operating structures that support our current business success. Prior to joining Objective, Stephen had served in senior leadership roles at US multinational Software and Consulting Services companies including PeopleSoft (Oracle), and SPL WorldGroup (Oracle) during a career that spans over 30 years in the industry. Stephen holds a Bachelor Degree in Computer Science and Master Degree in Business Administration. MR GARY FISHER Non-Executive Director – resigned 21 August 2023 Gary was appointed a Director of Objective Corporation Limited in March 1991. In October 2007 Gary became a Non-Executive Director. Gary has an extensive background in Finance, IT Management and global product software sales. Gary has a B.Economics and further tertiary education in Law and Business Administration. Company secretary MR BEN TREGONING Company Secretary Ben was appointed Company Secretary in July 2016. Ben has over 15 years’ experience in financial roles within Financial Services and corporate finance businesses both in Australia and the UK. He is responsible for company secretarial and corporate governance support at Objective. Ben has a B.Commerce and a M.Commerce. Principal activities The principal activity of the Group during the year was the supply of information technology software and services. There was no significant change in the nature of the Group’s activities during the year. Dividends An ordinary final unfranked dividend of $12,852,000 was paid on 14 September 2023. Since the end of the financial year, the directors have recommended the payment of a final fully franked dividend of 8 cents per ordinary share on 16 September 2024 and a final unfranked dividend of 9 cents per ordinary share on 17 September 2024. The aggregate amount of the dividends expected to be paid is $16,175,755. There is no conduit foreign income attributed to this final dividend declared. Directors’ Report For the year ended 30 June 2024 20 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Review of operations and financial results A review of the Group operations and the results for the year ended 30 June 2024 is set out on the inside front cover from pages 8 to 13 of the annual report and forms part of the Directors’ Report. This includes the summary of consolidated results as well as an overview of the Group’s financial performance. Significant changes in state of affairs There were no significant changes in the state of affairs of the Group during the financial year. Share capital As at 30 June 2024 the Company had 95,090,246 (2023: 95,116,253) fully paid ordinary shares on issue. Share options and rights UNISSUED SHARES UNDER OPTIONS AND RIGHTS As at the date of this report unissued ordinary shares in the Company under share based payment arrangements are: Options on Issue Number Expiry Date Employee options exercisable at $1.17 125,000 24/02/2025 Employee options exercisable at $2.75 206,250 01/01/2029 Employee options exercisable at $7.50 270,000 01/07/2030 Employee options exercisable at $14.85 100,000 30/04/2027 Employee options exercisable at $10.35 965,000 01/01/2028 Employee options exercisable at $10.35 187,500 01/01/2028 Employee options exercisable at $14.85 550,000 01/01/2028 Employee options exercisable at $12.00 40,000 01/01/2028 Employee options exercisable at $12.00 100,000 01/01/2028 Total options on issue 2,543,750 Weighted average exercise price $10.22 Rights on Issue Number Expiry Date Rights exercisable at $nil 37,500 22/12/2026 Rights exercisable at $nil 4,000 21/03/2027 Rights exercisable at $nil 5,000 28/02/2027 Rights exercisable at $nil 7,500 28/11/2027 Rights exercisable at $nil 17,100 01/01/2028 Total rights on issue 71,100 Weighted average exercise price $nil Details of the options and rights on issue under each share based payment arrangement are contained in Notes 20 and 27 to the financial statements. 21 CEO’s Report Business Line Review Sustainability Financial Statements Directors’ Report For the year ended 30 June 2024 SHARES ISSUED ON EXERCISE OF OPTIONS AND RIGHTS Movements in equity incentives and shares issued on exercise of equity incentives during and since the end of the year: Instrument Number of instruments granted Number of instruments exercised Number of ordinary shares issued on exercise Amount paid for shares Amount unpaid on shares Share options 1,842,500 237,500 237,500 $1,294,375 – Rights 23,100 16,000 16,0001 – – 1. Includes 8,500 ordinary shares purchased on the ASX market. Refer Note 27 for further details. During the year, the Group issued 192,250 ordinary shares of the Company as a result of the exercise of 176,250 options and 16,000 rights at various prices under the share based payment arrangements. Since the end of the financial year, the Group issued 61,250 ordinary shares of the Company as a result of the exercise of 61,250 options at various prices under the share based payment arrangements and funded via interest free limited recourse loans provided by the issuing entity to employees under the current Employee Incentive Plan. For accounting purposes, these share loans are treated as part of options to purchase shares, until the loans are repaid or extinguished at which point the shares are recognised. Likely developments The Company delivered strong profitability in FY2024. We continued to invest in our product portfolio and our workforce, as well as developing new markets for our products and pursuing non‑organic growth opportunities. The Directors have identified opportunities to continue to grow the business in FY2025 and the Company will be pursuing these whilst maintaining a focus on increasing profitability. Through product innovation and the development of outstanding software, we have expanded our addressable market in the regions in which we are well established, and our globally competitive products provide an opportunity for us to expand our presence beyond our current geographic footprint. The Company also retains significant financial capacity to pursue investment opportunities outside of the current product portfolio and customer reach. Refer to the Business Line Review section for further details. Performance in relation to environmental regulation The Board places a high priority on environmental issues and is satisfied that systems are in place for the management of the Company’s compliance with applicable environmental regulations under the laws of the Commonwealth, States and Territories of Australia. The Company is not aware of any pending prosecutions relating to environmental issues, nor is the company aware of any environmental issues, which would materially affect the business as a whole. Events after balance sheet date For dividends resolved to be paid after 30 June 2024, refer Note 21. Other than the above, the Directors have not become aware of any matter or circumstance not otherwise dealt with in the report or in the financial statements that has significantly or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years. Indemnifying officers or auditor During the financial year the Company has paid an insurance premium for a Directors’ and Officers’ insurance policy. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the Directors or Company Secretary as a result of the work performed in their capacity as officers of entities in the Group to the extent permitted by law. The Directors have not disclosed the amount of the premium as such disclosure is prohibited under the terms of the contract. The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the Company or any related body corporate against a liability incurred. Corporate Governance Statement The Company’s Directors and management are committed to conducting the Group’s business in an ethical manner and in accordance with the highest standards of corporate governance. The Company has adopted and substantially complies with the ASX Corporate Governance Principles and Recommendations (4th Edition) (‘Recommendations’) to the extent appropriate to the size and nature of the Group’s operations. The Company has prepared a Corporate Governance Statement which sets out the corporate governance practices that were in operation throughout the financial year for the Company, identifies any Recommendations that have not been followed, and provides reasons for not following such Recommendations. The Company’s Corporate Governance Statement and policies will be approved at the same time as the Annual Report and will be found on its website: http://www.objective.com/about/investors. 22 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Directors’ interest Directors’ beneficial interest in shares, options and rights at the date of this report were: Director Number of ordinary shares Number of options Number of rights Tony Walls 62,000,000 – – Nick Kingsbury 100,000 – – Darc Rasmussen 230,214 – – Stephen Bool 127,500 – 7,500 Total directors’ interest 62,457,714 – 7,500 Meetings of Directors The number of Directors’ and Audit Committee meetings held during the financial year and the number of meetings attended by each of the Directors are as follows: Directors’ Meeting Audit Committee Meetings Director Number of Meetings Held Number of Meetings Attended Number of Meetings Held Number of Meetings Attended Tony Walls 11 11 2 2 Nick Kingsbury 11 11 2 2 Darc Rasmussen 11 11 2 2 Stephen Bool 11 11 n/a n/a Gary Fisher1 2 2 n/a n/a 1. Mr Gary Fisher resigned on 21 August 2023. Auditor’s Independence Declaration A copy of the auditor’s independence declaration in relation to the financial year is included on page 66. Auditor’s non-audit services The Company has not engaged the Group auditor, Pitcher Partners, to provide non-audit services during the financial year. Rounding of amounts The Company is an entity to which ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 applies and accordingly, amounts in the financial statements and Directors’ Report have been rounded to the nearest thousand dollars, unless specifically stated to be otherwise. Proceedings on behalf of the Company No person has applied to the Court for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. The Company was not a party to any such proceedings during the year. 23 CEO’s Report Business Line Review Sustainability Financial Statements Directors’ Report For the year ended 30 June 2024 Audited Remuneration Report This remuneration report details the key management personnel (“KMP”) remuneration arrangements for the Group, in accordance with the requirements of the Corporations Act 2001 (Cth) and its Regulations. The table below lists the Executives of the Group for the year ended 30 June 2024 and whose remuneration details are outlined in this Remuneration Report. Directors Tony Walls Chairman and Chief Executive Officer Nick Kingsbury Independent Non-Executive Director Darc Rasmussen Independent Non-Executive Director Stephen Bool Non-Executive Director Executive key management personnel Ben Tregoning VP Corporate Services and Chief Financial Officer (CFO) OVERVIEW OF REMUNERATION APPROACH AND FRAMEWORK The Board from time to time reviews the remuneration packages of all Directors and Executive Officers with due regard to performance and other relevant factors. The remuneration policy generally is to ensure the remuneration package properly reflects the person’s duties and responsibilities and that the remuneration is competitive to attract, retain and motivate employees of the highest calibre. EXECUTIVE DIRECTORS AND EXECUTIVES (EXECUTIVE KMP) The Group aims to reward executives with a level and mix of remuneration based on their position and responsibility. All Executive KMP remuneration is comprised of the following: ■Fixed remuneration made up of contractual base salary, leave entitlements and legislated superannuation guarantee ■Variable remuneration in the form of short-term cash incentive and a long-term incentive through the issue of share options and/or rights at the Board’s discretion. The variable component, such as bonuses, are structured to reward outstanding performance against agreed Key Performance Indicators (“KPIs”) including financial and non-financial metrics aligned with the Group’s business strategy. Ultimately, bonuses and discretionary payments to Executive KMP are at the discretion of the Board. Remuneration and other terms of employment of the Executive KMP are formalised in employment agreements and contain the following key terms: Chief Executive Officer Chief Financial Officer Annual Salary Total fixed remuneration of $300,000 inclusive of superannuation Total fixed remuneration of $380,695 inclusive of superannuation Performance Bonus No STI potential Total potential STI of up to 40% of Annual Salary, based on performance measured against a range of performance indicators Long-term Incentive No LTI potential Long-term incentives include long service leave and share-based payments Notice Period Six months One month There are no retirement and termination benefits for Executive Directors or Executives apart from those that accrue from the relevant laws such as unpaid annual leave, superannuation, long service leave and notice of termination. The Group may consider payments on termination even though legally not required, to protect its rights if it is commercially beneficial to its interests. 24 Annual Report 2024 Objective Corporation Limited and its Controlled Entities NON-EXECUTIVE DIRECTORS Fees and payments to Non-Executive Directors reflect the demands that are made on, and the responsibilities of, the Directors. The Board decides the total amount paid to each non-executive Director as remuneration for their services as a Director. Non‑Executive Directors receive an annual fee, paid monthly. The fees are not linked to performance of the Company. However, to align Non-Executive Directors’ interest with shareholder interests, the Non-Executive Directors are encouraged to hold shares in the Company and are able to participate in the employee share option plan. Voting and comments made at the company’s 29 November 2023 Annual General Meeting (‘AGM’) At the 2023 AGM, 90.9% of the votes received supported the adoption of the remuneration report for the year ended 2023. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. The Group did not engage a remuneration consultant to provide recommendations in respect of the remuneration of KMP. GROUP PERFORMANCE Information about the Group’s earnings and movements in shareholder wealth for the past five years up to and including the current financial year are set out in the table below. Measure 2024 2023 2022 2021 2020 Revenue ($’000) 117,500 110,364 106,505 95,056 70,040 Net profit after tax ($’000) 31,330 21,087 19,563 16,086 11,025 Basic earnings per share 32.9 22.2 cps 20.7 cps 17.2 cps 11.8 cps Dividends 17.0 cps 13.5 cps 11.0 cps 9.0 cps 7.0 cps Share price at 30 June ($) 12.03 13.77 13.73 17.47 7.38 Share buy-backs ($’000) 2,848 1,239 – – 502 Remuneration received by KMP is set out in the tables below. Short-term Long-term Share based payments (SBP) Post employment 2024 Salary and fees $ Bonus $ Other $ Leave entitle- ments $ Options and rights $ Super- annuation $ Total $ % perfor- mance related % Value of SBP as % of remun- eration % N Kingsbury 69,146 – – – – – 69,146 – – T Walls 189,135 – – 4,222 – 22,135 215,492 – – D Rasmussen 54,167 – – – – – 54,167 – – S Bool 63,636 – – – 33,450 7,000 104,086 – 32.1% B Tregoning 335,803 68,8372 1,200 3,794 369,096 27,399 806,129 8.5% 45.8% Short-term Long-term Share based payments (SBP) Post employment 2023 Salary and fees $ Bonus $ Other $ Leave entitle- ments $ Options and rights $ Super- annuation $ Total $ % perfor- mance related % Value of SBP as % of remun- eration % N Kingsbury 64,419 – – – – – 64,419 – – T Walls 274,708 – – 8,030 – 25,292 308,030 – – G Fisher1 – – – – – – – – – D Rasmussen 45,662 – – – 676 4,794 51,132 – 1.3% S Bool 63,636 – – – 19,428 6,682 89,746 – 21.6% B Tregoning 342,208 60,624 1,497 13,324 118,440 25,292 561,385 10.8% 21.1% 1. Mr Gary Fisher resigned on 21 August 2023. 2. Granted by the Board on 25 March 2024 and represents 45% bonus as a percentage of maximum achievable. 25 CEO’s Report Business Line Review Sustainability Financial Statements Directors’ Report For the year ended 30 June 2024 The bonuses in the above tables are short-term incentives fully vested to the Executive for that year. The cash bonuses are determined by the Board based on overall company performance and achievement of financial and operational targets within individual areas of control. The fair value of options and rights have been determined using Black-Scholes and Monte-Carlo Simulation option pricing models, taking into account the exercise price, the term of the option, the vesting criteria, the impact of dilution, the non-tradeable nature of the option, the price at grant date of the underlying share and the expected price volatility of that share, the expected dividend yield and the risk free interest rate for the term of the option and rights. The value of the option or right at grant date is then amortised over the relevant vesting period. The value included in remuneration of key management personnel above relates to the amortised value of options and rights granted and vested. Details of options over ordinary shares granted, vested and lapsed for Directors or other KMP during the year ended 30 June 2024 are set out below: Directors and KMP Number of options at 30 June 2023 Number granted Number exercised Number of options at 30 June 2024 Number available for exercise at 30 June 2024 Amount paid per share Amount unpaid on share B Tregoning 66,250 550,000 (38,750)1 577,500 – $5.77 – Weighted average exercise price $4.36 $14.85 $2.75 $14.27 n/a n/a n/a Fair value per option n/a $1.56 $0.68 n/a n/a n/a n/a 1. These options are exercisable in four equal tranches with an exercise price of $14.85 per share and contain graded exercise restriction periods up to 15 December 2027. Details of movement in share rights for Directors or other KMP during the year ended 30 June 2024 are set out below: Directors and KMP Number of rights at 30 June 2023 Number granted Number exercised Number of rights at 30 June 2024 Grant date Fair value per right – granted Fair value per right – exercised S Bool 10,000 – (2,500) 7,500 28/11/2022 n/a $13.38 B Tregoning – 6,000 (6,000) – 06/10/2023 $10.76 $10.76 Exercise price n/a $nil $nil n/a n/a n/a n/a SHAREHOLDINGS OF KEY MANAGEMENT PERSONNEL KMP Number of shares at 30 June 2023 Share options exercised Rights exercised Shares sold Number of shares at 30 June 2024 T Walls 62,000,000 – – – 62,000,000 N Kingsbury 100,000 – – – 100,000 D Rasmussen 230,214 – – – 230,214 S Bool 125,000 – 2,500 – 127,500 B Tregoning 162,509 38,750 6,000 (6,000) 201,259 Signed in accordance with a resolution of the Board of Directors. Tony Walls Director Date: 21 August 2024 26 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Consolidated Statement of Profit or Loss For the year ended 30 June 2024 CONSOLIDATED Notes 2024 $’000 2023 $’000 Revenue 3 & 5 117,500 110,364 Cost of sales (7,597) (7,195) Gross profit 109,903 103,169 Other losses 6 (7) (113) Interest expense and other finance costs 6 (657) (495) Distribution expenses (42,019) (42,419) Research and development expenses (17,046) (27,208) Administration and other operating expenses 6 (11,799) (10,956) Profit before income tax 3 & 6 38,375 21,978 Income tax expense 8 (7,045) (891) Profit for the year attributable to shareholders of Objective Corporation Limited 31,330 21,087 Cents Cents Basic earnings per share 4 32.9 22.2 Diluted earnings per share 4 32.4 21.9 The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes. 27 CEO’s Report Business Line Review Sustainability Financial Statements Consolidated Statement of Comprehensive Income For the year ended 30 June 2024 CONSOLIDATED Notes 2024 $’000 2023 $’000 Profit for the year 31,330 21,087 Other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 22 90 875 Other comprehensive income for the year, net of tax 90 875 Total comprehensive income for the year 31,420 21,962 Total comprehensive income for the year attributable to shareholders of Objective Corporation Limited 31,420 21,962 The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. 28 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Consolidated Statement of Financial Position As at 30 June 2024 CONSOLIDATED Notes 2024 $’000 2023 $’000 Current assets Cash and cash equivalents 9 95,979 72,519 Trade and other receivables 11 4,523 20,647 Contract assets 12 2,782 3,252 Current tax assets – 967 Other assets 13 2,627 2,311 Total current assets 105,911 99,696 Non-current assets Trade and other receivables 11 8 20 Property, plant and equipment 14 2,510 2,953 Right-of-use assets 15 11,056 13,643 Deferred tax assets 8 – 2,419 Intangible assets 16 53,407 41,115 Other assets 13 6 6 Total non-current assets 66,987 60,156 Total assets 172,898 159,852 Current liabilities Trade and other payables 17 9,965 11,455 Contract liabilities 12 48,502 51,969 Lease liabilities 18 2,759 2,532 Current tax liabilities 661 – Provisions 19 6,163 5,847 Other liabilities 23 94 207 Total current liabilities 68,144 72,010 Non-current liabilities Lease liabilities 18 10,689 13,385 Deferred tax liabilities 8 738 – Provisions 19 1,026 908 Total non-current liabilities 12,453 14,293 Total liabilities 80,597 86,303 Net assets 92,301 73,549 Equity Share capital 20 12,385 11,722 Reserves 22 (10,681) (10,292) Retained earnings 90,597 72,119 Total equity 92,301 73,549 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 29 CEO’s Report Business Line Review Sustainability Financial Statements Consolidated Statement of Changes in Equity For the year ended 30 June 2024 CONSOLIDATED Notes Share capital $’000 Reserves $’000 Retained earnings $’000 Total $’000 As at 30 June 2022 11,310 (10,807) 61,454 61,957 Profit for the year – – 21,087 21,087 Exchange differences on translation of foreign operations 22 – 875 – 875 Total comprehensive income for the period – 875 21,087 21,962 Transactions with owners in their capacity as owners: Share-based payments 22 – 600 – 600 Share options exercised 20 691 – – 691 Dividends provided for or paid 10(b) & 21 – – (10,422) (10,422) Buy-back of ordinary shares 22 – (1,239) – (1,239) Treasury shares acquired and issued 20 & 22 (279) 279 – – Total transactions with owners in their capacity as owners 412 (360) (10,422) (10,370) As at 30 June 2023 11,722 (10,292) 72,119 73,549 Profit for the year – – 31,330 31,330 Exchange differences on translation of foreign operations 22 – 90 – 90 Total comprehensive income for the period – 90 31,330 31,420 Transactions with owners in their capacity as owners: Share-based payments 22 – 2,005 – 2,005 Share options exercised 20 663 – – 663 Dividends provided for or paid 10(b) & 21 – – (12,852) (12,852) Buy-back of ordinary shares 22 – (2,484) – (2,484) Treasury shares acquired and issued 20 & 22 – – – – Total transactions with owners in their capacity as owners 663 (479) (12,852) (12,668) As at 30 June 2024 12,385 (10,681) 90,597 92,301 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 30 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Consolidated Statement of Cash Flows For the year ended 30 June 2024 CONSOLIDATED Notes 2024 $’000 2023 $’000 Cash flows from operating activities Receipts from customers 137,625 118,265 Payments to suppliers and employees (81,157) (91,877) Payment for NZCC settlement – (1,440) Interest received 2,222 1,283 Interest paid (647) (484) Income taxes paid, net (2,259) (2,320) Net cash inflow from operating activities 10(a) 55,784 23,427 Cash flows from investing activities Repayment of loans by employees 12 13 Payment for acquisition of subsidiaries, net of cash acquired1 (93) (198) Payments for intangibles 16 (14,088) – Payments for property, plant and equipment (1,006) (572) Net cash outflow from investing activities (15,175) (757) Cash flows from financing activities Dividends paid 10(b) (12,791) (10,389) Repayment of lease liabilities 10(b) (2,543) (3,162) Payment for buy-back of shares (2,484) (1,239) Treasury shares acquired and issued (98) – Proceeds from issue of shares 761 690 Net cash outflow from financing activities (17,155) (14,100) Net increase in cash and cash equivalents 23,454 8,570 Cash and cash equivalents at the beginning of the financial year 72,519 63,794 Effects of exchange rate changes on cash and cash equivalents 6 155 Cash and cash equivalents at end of the financial year 9 95,979 72,519 1. Represents part of the third instalment payment of $93,000 (NZD100,100) made in settlement of the deferred consideration payable in relation to the acquisition of Master Business Systems Limited, which was acquired in a prior year. The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 31 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 1 – Reporting entity Objective Corporation Limited (“the company”) is a limited company incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange. The address of its registered office is Level 30, 177 Pacific Highway, North Sydney NSW 2060, Australia. This financial report includes the consolidated financial statements of Objective Corporation Limited and its controlled entities (“the Group”). Information about subsidiaries at 30 June 2024 is set out under Note 24. The Group is a ‘for profit’ entity and the principal activities for the Group’s various business areas are described in more detail in Note 3 Segment Information. BASIS OF PREPARATION This financial report is a general purpose financial report which: ■has been prepared in accordance with Australian Accounting Standards and the Corporations Act 2001 (Cth); ■complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and Interpretations as issued by the IFRS Interpretations Committee (IFRIC); ■has been prepared on a historical cost basis except for certain items measured at fair value; ■has been prepared on a going concern basis; ■is presented in Australian dollars (AUD), which is the group’s functional and presentation currency; and ■is presented with values rounded to the nearest thousand dollars in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. Where necessary, comparative information has been restated to conform to the current year’s disclosures. Note 2 – Material accounting policy information Material accounting policies applied by the Group in the preparation of the consolidated financial statements are incorporated into the individual notes, and supplemented by the disclosures hereunder. The accounting policies applied are consistent with those of the previous financial year except for the adoption of new accounting standards, interpretations, or amendments, as listed below. NEW OR REVISED ACCOUNTING STANDARDS The following amendments to standards became effective and applicable to the Group from 1 July 2023: ■AASB 2021-2 Amendments to Australian Accounting Standards: Disclosure of Accounting Policies and Definition of Accounting Estimates – The amendments provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures and clarify the distinction between changes in accounting policies and accounting estimates. The Group has reviewed and made appropriate changes to its accounting policy disclosures in these consolidated financial statements, guided by materiality requirements. ■AASB 2021-5 Amendments to Australian Accounting Standards: Deferred Tax related to Assets and Liabilities arising from a Single Transaction – The amendments narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities. The amendments had no impact on the Group’s consolidated financial statements. New standards and interpretations and amendments to existing standards and interpretations issued by the IASB, but not yet endorsed by the AASB, and which are effective for financial years beginning after 1 January 2024, have not been applied in preparing these consolidated financial statements and have not been disclosed as they are not expected to have a material impact on the Group’s consolidated financial statements. BASIS OF CONSOLIDATION The consolidated financial statements have been prepared by aggregating the financial statements of all the entities that comprise the Group, being Objective Corporation Limited and its controlled entities. In these consolidated financial statements: ■results of each controlled entity are included from the date Objective Corporation Limited obtains control and until such time as it ceases to control an entity; and ■all inter-entity balances and transactions are eliminated. Control is achieved when Objective Corporation Limited is exposed to, or has rights to, variable returns from its involvement with an entity and has the ability to affect those returns through its power to direct the activities of the entity. Assets and liabilities in foreign subsidiaries, whose functional currency differ from the presentation currency, are converted to AUD using the exchange rate in effect at the reporting date. Income and expenses from foreign companies are converted to AUD using the monthly average rate of exchange. All translation differences are recognised in other comprehensive income and accumulated in the foreign currency translation reserve. FOREIGN CURRENCY TRANSACTIONS AND BALANCES Transactions in foreign currency are converted at the exchange rate applicable on the transaction date. Monetary items in a foreign currency are converted to AUD using the exchange rate applicable on the balance sheet date. Changes to exchange rates are recognised in the consolidated statement of profit or loss as they occur during the accounting period. 32 Annual Report 2024 Objective Corporation Limited and its Controlled Entities SIGNIFICANT JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY Significant judgments and key assumptions that management has made in applying the Group’s material accounting policies and that have a significant effect on the amounts recognised in the consolidated financial statements are detailed in the notes below: Note Judgement/Estimation 3, 5 Revenue from contracts with customers 11 Expected credit loss allowance 16 Capitalised development costs 14, 15, 16 Useful life for depreciable assets 15, 18 Lease terms and incremental borrowing rates 19, 27 Employee benefits assumptions and share based remuneration 8 Income taxes 16 Impairment assessment The estimates and assumptions are based on the information available at the date of issuance of the consolidated financial statement, historical experience and other factors, including expectations of future events which are believed to be reasonable at that time. The actual results might differ from the estimates. Note 3 – Segment information OPERATING AND REPORTABLE SEGMENTS The Group applies a ‘management approach’ to identify its segments, based on the information provided to the Group’s chief operating decision-makers (CODM). Accordingly, segment information is prepared on the basis of internal management reporting that is regularly reviewed by the CODM to assess the performance of the segment and make decisions regarding the allocation of resources. Within the Group, the function of the CODM is exercised by the CEO. The CODM assesses the financial performance of the Group on an integrated basis only, and accordingly the Group is managed on the basis of a single segment. REVENUE BY PRODUCT GROUP The revenue analysis presented to the CODM on a monthly basis is categorised by product group as below: CONSOLIDATED 2024 $’000 2023 $’000 Revenue by product group: Content Solutions 80,283 76,144 Regulatory Solutions 22,218 21,079 Planning and Building 12,303 11,696 Total revenue from contracts with customers 114,804 108,919 Segment profit before tax 38,375 21,978 Product groups Description Content Solutions Includes revenue from Objective Nexus which allow customers to manage information and process governance across the enterprise through either on-premise or cloud infrastructure. Also includes the revenue from the sale of Objective Connect products which enable customers to collaborate with external organisations with the security, information governance and auditability demanded by government and Objective Redact products which allow users to irreversibly remove sensitive information from any electronic document. It also Includes results from the sale of Objective Keystone products that improve efficiency and deliver governance in the process of authoring, reviewing, engaging with and publishing documents. Regulatory Solutions Includes revenue from Objective RegWorks and Objective Reach products that are focused on the delivery of government regulation technology solutions, helping governments and regulators to productively carry out the essential work of delivering safety, regulation, compliance and enforcement outcomes that make our communities safer places to live. Planning and Building Includes revenue from the sale of Objective Trapeze products which digitally transform development application plan reviews and assessments; and Objective Build, a leading end to end building consenting solution. 33 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 3 – Segment information (continued) REVENUE BY GEOGRAPHIC LOCATION A large amount of revenue is generated by customers that are global, from transactions that cross multiple countries and where the source of revenue can be unrelated to the location of the users accessing the software. CONSOLIDATED 2024 $’000 2023 $’000 Revenue by location: Australia 90,667 80,721 United Kingdom 12,106 11,055 New Zealand 13,225 16,810 Rest of the world 1,502 1,778 Total revenue 117,500 110,364 There were no customers contributing more than 10% of total revenue during the current and comparative period. The CODM continues to consider the financial position of the business from a geographical perspective and as such the assets and liabilities of the Group are presented by geographical region for both the year ended 30 June 2024 and the comparative period. REPORTABLE SEGMENT ASSETS AND LIABILITIES BY GEOGRAPHIC LOCATION CONSOLIDATED 30 June 2024 Asia Pacific $’000 Europe $’000 Total $’000 Reportable segment assets 142,302 30,596 172,898 Reportable segment liabilities 69,505 11,092 80,597 30 June 2023 Asia Pacific $’000 Europe $’000 Total $’000 Reportable segment assets 127,983 31,869 159,852 Reportable segment liabilities 78,529 7,774 86,303 RECONCILIATION OF NON-CURRENT ASSETS Non-current assets for this purpose consist of property, plant and equipment, intangible assets, deferred taxes and other receivables. CONSOLIDATED 2024 $’000 2023 $’000 Non-current assets by location of assets Australia 39,516 32,679 United Kingdom 9,004 7,846 New Zealand 11,753 12,831 Rest of the world 6,714 6,800 Total non-current assets 66,987 60,156 34 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 4 – Earnings per share CONSOLIDATED 2024 2023 Net profit for the year attributable to the shareholders of Objective Corporation Limited ($’000) 31,330 21,087 Weighted average number of ordinary shares used in basic earnings per share 95,184,283 94,996,551 Effect of potentially dilutive shares 1,437,898 1,138,750 Weighted average number of ordinary shares used in diluted earnings per share 96,622,181 96,135,301 Basic earnings per share 32.9 cents 22.2 cents Diluted earnings per share 32.4 cents 21.9 cents Note 5 – Revenue from contracts with customers CONSOLIDATED 2024 $’000 2023 $’000 Revenue from contracts with customers 114,804 108,919 Other revenue: Interest income 2,696 1,445 Total revenue 117,500 110,364 DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS The Group’s revenue disaggregated by pattern of revenue recognition is as follows. CONSOLIDATED 2024 $’000 2023 $’000 Timing of revenue recognition: – products and services transferred at a point in time 64 2,033 – products and services transferred over time 114,740 106,886 Total revenue from contracts with customers 114,804 108,919 RECOGNITION AND MEASUREMENT – REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from contracts with customers is recognised upon transfer of control of the promised goods or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The Group designs, develops and delivers specialised software solutions to assist predominantly public sector bodies to operate with increased effectiveness, transparency and efficiency through uptake of the Company’s content, collaboration and process management solutions. From these activities, the Group generates the following streams of revenue: ■Software licence or subscription revenue ■Implementation and consulting revenue ■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. In recognising revenue, an assessment is performed as to whether control of the goods transfer to a customer over time or at a point in time. 35 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 5 – Revenue from contracts with customers (continued) Revenue recognition for each of the above revenue streams are as follows: Revenue stream Performance obligation Timing of recognition Software license revenue Access to software Software license revenue offered on a subscription basis is recognised based on an equal daily rate over the term of the contract as the customer simultaneously receives and consumes the benefit of accessing the software. Subscription customers are typically invoiced annually in advance and prior to revenue recognition, which results in contract liabilities. The consideration is payable when invoiced. Right-to-use Revenue from distinct on-premise licenses is recognised upfront at the point in time when the software is delivered to the customer. Perpetual licenses are initially sold with one year of ongoing software support which is recognised as revenue over time and the option to renew thereafter. Implementation and consulting revenue As defined in the contract Professional service revenue billed on a time and materials basis 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. Implementation and consulting revenue For fixed-price contracts, revenue is recognised based on the extent of progress towards completion of the performance obligation, on a project-by-project basis. The method used to measure progress depends on the nature of the services. Revenue is recognised on the basis of time and materials incurred to date relative to the total budgeted inputs. The output method on the basis of milestones is used when the contractual terms align the Company’s performance with measurements of value to the customer. Revenue is recognised for services performed to date based on contracted rates and/or milestones that correspond to the amount the Company is entitled to invoice. If contracts include the installation of software license, revenue for the software licence is recognised at a point in time when the software is delivered, the legal title has passed, and the customer has taken delivery of the software license. Other ancillary fees Provision of hosting services, cloud services, support and maintenance services Over time, depending on circumstances. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS – REVENUE FROM CONTRACTS WITH CUSTOMERS Performance obligations The Group’s contracts with customers may include multiple performance obligations. For contracts with multiple components to be delivered, such as, software installation, software licence and upgrade support services, management applies judgement to consider whether those promised goods and services are (i) distinct – to be accounted for as separate performance obligations; (ii) not distinct – to be combined with other promised goods or services until a bundle is identified as distinct or (iii) part of a series of distinct goods and services that are substantially the same and have the same pattern of transfer to the customer. Transaction price At contract inception the total transaction price is estimated, being the amount to which the Group expects to be entitled and has rights to under the present contract. This includes an assessment of any variable consideration where the Group’s performance may result in additional revenues based on the achievement of agreed key performance indicators. Such amounts are only included based on the expected value method and only to the extent that it is highly probable that significant reversals in the cumulative amount of revenue recognised will not occur in subsequent periods. The expected value method for estimating variable consideration is generally used where the Group has a large number of contracts with similar characteristics. The Group allocates the transaction price to each performance obligation based on the relative stand-alone selling prices of each distinct product or service. Stand-alone selling prices are determined based on prices charged to customers for individual products and services taking into consideration the size and length of contracts and the Group’s overall go to market strategy. 36 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Contract modifications The Group’s contracts may occasionally be amended for changes in contract specifications and requirements. Contract modifications exist when the amendment either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and the Group’s measure of progress for the performance obligation to which it relates, is recognised as an adjustment to revenue in one of the following ways: a. prospectively as an additional separate contract; b. prospectively as a termination of the existing contract and creation of a new contract; c. as part of the original contract using a cumulative catch up; or d. as a combination of (b) and (c). For contracts for which the Group has decided there is a series of distinct goods and services that are substantially the same and have the same pattern of transfer where revenue is recognised over time, the modification will always be treated under either (a) or (b). (d) may arise when a contract has a part termination and a modification of the remaining performance obligations. Judgement is applied in relation to the accounting for such modifications where the final terms or legal contracts have not been agreed prior to the period end as management need to determine if a modification has been approved and if it either creates new or changes existing enforceable rights and obligations of the parties. Depending upon the outcome of such negotiations, the timing and amount of revenue recognised may be different in the relevant accounting periods. Modification and amendments to contracts are undertaken via an agreed formal process. For example, if a change in scope has been approved but the corresponding change in price is still being negotiated, management use their judgement to estimate the change to the total transaction price. Importantly any variable consideration is only recognised to the extent that it is highly probable that no revenue reversal will occur. Note 6 – Profit and loss items CONSOLIDATED 2024 $’000 2023 $’000 Expenses: Depreciation expenses – property, plant and equipment (1,446) (1,877) Depreciation expenses – right-of-use assets (2,662) (2,540) Amortisation expenses and impairment – intangible assets (1,870) (520) Expected credit loss allowance – trade and other receivables and contract assets (391) – Interest expense – lease liabilities (642) (467) Other finance costs (15) (28) Other short term lease expenses (43) (33) Employee benefits expense (62,222) (60,715) Superannuation expense (4,976) (4,523) Share based payments expense (2,005) (600) Net foreign exchange losses (7) (113) RECOGNITION AND MEASUREMENT Revenues and expenses are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of purchase. 37 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 7 – Auditor’s remuneration CONSOLIDATED 2024 $ 2023 $ Pitcher Partners Audit and review of financial statements 151,000 110,548 Total remuneration of Pitcher Partners 151,000 110,548 Non-Pitcher Partners Audit and review of financial statements 27,399 26,517 Tax compliance services 3,318 3,243 Total remuneration of non-Pitcher Partners 30,717 29,760 Audit fee is included in Administration and Other Operating Expenses on the face of the consolidated statement of profit or loss. Pitcher Partners is the Group auditor of the Company. Note 8 – Income taxes (A) COMPONENTS OF INCOME TAX EXPENSE CONSOLIDATED 2024 $’000 2023 $’000 Current tax expense on profits for the year 4,052 2,231 Deferred tax expense/(credit) related to movements in deferred tax balances 3,173 (100) Income tax over provided in prior years (180) (1,240) Income tax expense 7,045 891 (B) RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE CONSOLIDATED 2024 $’000 2023 $’000 Profit before income tax expense 38,375 21,978 Prima facie income tax expense calculated at the tax rate of 30% 11,513 6,593 Tax effect of amounts which are not deductible/(taxable) in calculating taxable income: Amortisation expenses – intangibles 127 135 Share based payment expenses 602 180 Other non-allowable deductions 62 91 Subtotal 12,304 6,999 Different tax rates of subsidiaries operating in other jurisdictions (422) (252) Adjustments for current tax of prior periods (180) (1,240) Research and development tax credit (3,614) (3,421) Tax effect of cash contributions to employee share trust (717) (1,126) Recoupment in the current year of previously unrecognised tax losses (326) (69) Income tax expense 7,045 891 38 Annual Report 2024 Objective Corporation Limited and its Controlled Entities (C) DEFERRED TAX BALANCES AS DISCLOSED IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED 2024 $’000 2023 $’000 Deferred tax assets arising on deductible temporary differences 2,747 2,552 Deferred tax liabilities arising on taxable temporary differences (3,485) (133) Total net deferred tax (liabilities)/assets (738) 2,419 (D) MOVEMENT IN DEFERRED TAX BALANCES CONSOLIDATED Opening balance $’000 Charged to profit or loss $’000 Foreign currency translation $’000 Closing balance $’000 At 30 June 2024 Property, plant and equipment 429 (60) 4 373 Unrealised foreign exchange 1 (1) – – Employee benefits provision 1,847 117 13 1,977 Rent incentive provision 146 3 1 150 Deferred expenditures for tax purposes 59 (26) – 33 Intangibles (133) (3,351) (2) (3,486) Accrued expenses 11 – – 11 Other individually insignificant balances 59 145 – 203 Total net deferred tax assets/(liabilities) 2,419 (3,173) 16 (738) At 30 June 2023 Property, plant and equipment 92 335 2 429 Unrealised foreign exchange 33 (33) 1 1 Employee benefits provision 1,774 35 38 1,847 Rent incentive provision 252 (111) 5 146 Deferred expenditures for tax purposes 85 (28) 2 59 Intangibles (28) (105) – (133) Accrued expenses 6 5 – 11 Other individually insignificant balances 56 2 1 59 Total net deferred tax assets 2,270 100 49 2,419 (E) TAX LOSSES CONSOLIDATED 2024 $’000 2023 $’000 Unused tax losses for which no deferred tax asset has been recognised 3,213 4,635 Potential tax benefit 673 971 39 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 8 – Income taxes (continued) Recognition and measurement Income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income. Current tax payable is recognised as a liability (or asset) to the extent that it is unpaid (or refundable) and expected to be settled (or refunded) within twelve months of the year-end date. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends to either settle on a net basis or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in the consolidated statement of profit or loss. Deferred tax is determined using the balance sheet liability method for temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and the carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profits will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred taxes are not recognised for the initial recognition of goodwill; the initial recognition of assets or liabilities, outside of a business combination, that affect neither accounting nor taxable profit, and do not give rise to equal taxable and deductible temporary differences. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be used. Deferred tax assets and liabilities are offset in the consolidated financial statements when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Tax consolidation Objective Corporation Limited (the parent entity) and its wholly owned Australian resident subsidiaries formed a tax-consolidated group pursuant to Australian taxation law with effect from 1 July 2002 and are therefore taxed as a single entity from that date. Objective Corporation Limited is the head entity in the tax-consolidated group. Tax expense/credit, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax consolidated group are recognised in the separate financial statements of the members of the tax-consolidated group using the ‘standalone taxpayer’ approach by reference to the carrying amounts in the separate financial statements of each entity and the tax values applying under tax consolidation. Current tax liabilities and assets and deferred tax assets arising from unused tax losses and tax credits of the tax‑consolidated group are recognised by the head entity in the tax consolidated group. Uncertain tax positions The Company’s income tax assets and liabilities are based on interpretations of income tax legislation across various jurisdictions, primarily in Australia, New Zealand, United Kingdom and United States. The Company’s effective tax rate can change from year to year based on the mix of income among jurisdictions, changes in tax laws in these jurisdictions, and changes in the estimated value of deferred tax assets and liabilities. The Company’s income tax expense reflects an estimate of the taxes it expects to pay for the current year, as well as a provision for changes arising in the values of deferred tax assets and liabilities during the year. The tax value of these assets and liabilities is impacted by factors such as accounting estimates inherent in these balances, management’s expectations about future operating results, and differing interpretations of tax regulations by the taxable entity and the responsible tax authorities. Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of deferred taxable income. Where the final tax outcome of these matters is different from the estimated amounts, such differences will impact the current and, where recognised, deferred tax provisions in the period in which such determination is made. The Group exercises judgement in determining whether deferred tax assets, particularly in relation to tax losses, are probable of recovery. Factors considered include the ability to offset tax losses within the groups of entities in different tax jurisdictions, the nature of the tax loss, the length of time that tax losses are eligible for carry forward to offset against future taxable profits and whether future taxable profits are expected to be sufficient to allow recovery of deferred tax assets. 40 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 9 – Cash and cash equivalents For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of the following: CONSOLIDATED 2024 $’000 2023 $’000 Cash at bank and on hand 95,979 72,519 Total cash and cash equivalents1 95,979 72,519 1. The cash and cash equivalents disclosed above and in the consolidated statement of cash flows include $1,488,000 (2023: $1,488,000) in highly liquid investments which are restricted for use and held as security for rental guarantee. Cash and cash equivalents comprise cash, bank balances and term deposits and readily convertible to a known amount of cash throughout their term and subject to an insignificant risk of change in value assessed against the amount at inception. Note 10 – Cash flow information (A) RECONCILIATION OF PROFIT FOR THE YEAR TO NET CASH INFLOW FROM OPERATING ACTIVITIES CONSOLIDATED 2024 $’000 2023 $’000 Profit for the year 31,330 21,087 Adjustments: Depreciation and amortisation expenses 3,316 2,397 Depreciation of right-of-use assets 2,662 2,540 Non-cash employee benefits expense – share based payments 2,005 600 Other insignificant non-cash adjustments (7) 4 Credit loss allowance – trade and other receivables and contract assets 391 – Change in operating assets and liabilities: (Decrease)/increase in trade and other receivables 15,732 (2,657) Increase in other operating assets (316) (304) (Decrease)/increase in contract assets 470 (280) Decrease in trade and other payables (1,551) (713) (Decrease)/increase in contract liabilities (3,467) 3,279 (Increase)/decrease in current tax balances 1,628 (1,280) (Increase)/decrease in deferred tax balances 3,157 (149) Increase/(decrease) in provisions 434 (1,108) Increase in other operating liabilities – 11 Net cash inflow from operating activities 55,784 23,427 41 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 10 – Cash flow information (continued) (B) RECONCILIATION OF MOVEMENTS IN LIABILITIES TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES CONSOLIDATED Dividends payable1 $’000 Lease liabilities $’000 Total $’000 30 June 2024 Opening balance at 1 July 2023 160 15,917 16,077 Cash flows from financing activities (12,791) (2,543) (15,334) Dividends declared (Note 21) 12,852 – 12,852 Additions arising from new leases, net of interest – 87 87 Foreign exchange movement – (13) (13) Total liabilities from financial activities 221 13,448 13,669 30 June 2023 Opening balance at 1 July 2022 127 9,217 9,344 Cash flows from financing activities (10,389) (3,162) (13,551) Dividends declared (Note 21) 10,422 – 10,422 Additions arising from new leases, net of interest – 9,680 9,680 Foreign exchange movement – 182 182 Total liabilities from financial activities 160 15,917 16,077 1. Dividends payables are included as part of the Trade and other payables balance on the consolidated statement of financial position. Note 11 – Trade and other receivables CONSOLIDATED 2024 2023 Current $’000 Non-current $’000 Current $’000 Non-current $’000 Trade receivables 3,160 – 19,564 – Other receivables 1,550 – 1,124 – Sub-total 4,710 – 20,688 Expected credit loss allowance (a) (187) – (41) – 4,523 – 20,647 – Loans to employees – 8 – 20 Total trade and other receivables 4,523 8 20,647 20 42 Annual Report 2024 Objective Corporation Limited and its Controlled Entities (A) MOVEMENT IN EXPECTED CREDIT LOSS ALLOWANCE IS AS FOLLOWS: CONSOLIDATED Trade receivables $’000 Contract assets $’000 Total $’000 30 June 2024 Balance at beginning of the year 41 – 41 Net remeasurement of expected credit loss allowance 146 245 391 Foreign currency translation – – – Total expected credit loss allowance at year end 187 245 432 30 June 2023 Balance at beginning of the year 40 – 40 Net remeasurement of expected credit loss allowance – – – Foreign currency translation 1 – 1 Total expected credit loss allowance at year end 41 – 41 Recognition and measurement Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less any expected 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. A provision matrix is then determined based on the Company’s historical collection and loss experience and incorporates forward‑looking factors, where appropriate. Classification as trade and other receivables Trade receivables are generally due for settlement within 30 days and therefore are all classified as current. The ageing of the Group’s trade and other receivables at reporting date together with impairment and other accounting policies for trade and other receivables are outlined in Note 23. 43 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 12 – Contract assets and contract liabilities CONSOLIDATED 2024 $’000 2023 $’000 Current Contract assets at gross 3,027 3,252 Expected credit loss allowance (Note 11(a)) (245) – Contract assets at net 2,782 3,252 Contract liabilities 48,502 51,969 Changes in contract balances during the current year are: Contract assets $’000 Contract liabilities $’000 Balance at the beginning of the year 3,252 (51,969) Transfer from contract assets to trade receivables (3,007) – Revenue recognised for work performed but not yet billed 2,863 – Transfer from contract liabilities to contract assets1 – 2,934 Revenue recognised during the year that was included in contract liabilities at the beginning of the year – 51,969 Increase due to cash received, excluding amount recognised during the year – (51,626) Foreign currency translation (81) 190 Balance at the end of the year at gross 3,027 (48,502) Changes in contract balances during the prior year are: Balance at the beginning of the year 2,972 (48,690) Transfer from contract assets to trade receivables (2,972) – Revenue recognised for work performed but not yet billed 3,242 – Transfer from contract assets to contract liabilities1 – 2,364 Revenue recognised during the year that was included in contract liabilities at the beginning of the year – 48,690 Increase due to cash received, excluding amount recognised during the year – (55,164) Foreign currency translation 10 831 Balance at the end of the year at gross 3,252 (51,969) 1. 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 received, a contract asset is recognised. If the payments received exceed the services rendered, a contract liability is recognised. Recognition and measurement Contract assets relate to unbilled receivable balances which have not yet been invoiced and arises when the revenue has been recognised as a result of the fulfillment of a contractual obligation and before the customer has made a payment or before the conditions for invoicing and thus for recognising a receivable are present. These are generally related to consultancy or services projects. Contract liabilities consist of billings or payments received in advance of revenue recognition from subscription services, including non-cancellable and non-refundable committed funds and deposits. Customers are typically invoiced for these agreements in regular instalments and revenue is recognised on a straight-line basis over the contractual subscription period or as the performance obligations under contracts with customers are satisfied. Contract liability does not represent the total contract value of annual or multi‑year non-cancellable subscription agreements. Unsatisfied performance obligations 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 to the value transferred to customer, typically involving time and material based contracts. The aggregate amount of contract liabilities of the performance obligations that are unsatisfied at 30 June 2024 was $48,502,000 (2023: $51,969,000) and is expected to be recognised as revenue within the next twelve months. 44 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 13 – Other assets CONSOLIDATED 2024 $’000 2023 $’000 Current assets Prepayments 2,599 2,259 Rental deposits 28 52 Total other assets 2,627 2,311 Non-current assets Other assets 6 6 Total other assets 2,633 2,317 Note 14 – Property, plant and equipment CONSOLIDATED Plant and equipment $’000 Leasehold improve- ments $’000 Motor vehicles $’000 Total $’000 30 June 2024 Gross carrying amount – cost 8,836 6,553 72 15,461 Accumulated depreciation (6,830) (6,053) (68) (12,951) Total property, plant and equipment, net 2,006 500 4 2,510 Represented by: Net carrying amount at 1 July 2023 2,080 855 18 2,953 Additions 850 156 – 1,006 Depreciation expenses (922) (510) (14) (1,446) Exchange differences (2) (1) – (3) Net carrying amount at 30 June 2024 2,006 500 4 2,510 30 June 2023 Gross carrying amount – cost 8,050 6,410 73 14,533 Accumulated depreciation (5,970) (5,555) (55) (11,580) Total property, plant and equipment, net 2,080 855 18 2,953 Represented by: Net carrying amount at 1 July 2022 2,499 1,727 32 4,258 Additions 541 – – 541 Depreciation expenses (981) (882) (14) (1,877) Exchange differences 21 10 – 31 Net carrying amount at 30 June 2023 2,080 855 18 2,953 Estimated useful life 2–10 years 2–7 years or shorter of lease term 5–8 years Recognition and measurement Property, plant and equipment are recorded at cost less accumulated depreciation and any impairment losses. All repair and maintenance costs are recognised in the consolidated statement of profit or loss as incurred. Significant accounting estimates and judgements – depreciation methods and useful lives Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. Estimates of remaining useful lives, residual values and depreciation methods require significant management judgement, are reviewed annually, and where changes are made, their effects are accounted for on a prospective basis. 45 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 15 – Right-of-use assets Movements in the net carrying amount of right-of-use assets during the year are presented below: CONSOLIDATED 2024 $’000 2023 $’000 Buildings Gross carrying amount – cost 24,500 24,452 Accumulated amortisation (13,444) (10,809) Total right-of-use assets, net 11,056 13,643 Movements in the net carrying amount of right-of-use assets during the year are presented below: CONSOLIDATED 2024 $’000 2023 $’000 Buildings Movement in balance: Net carrying amount at 1 July 13,643 6,712 Additions – new leases1 87 9,328 Depreciation of right-of-use assets (2,662) (2,540) Foreign exchange differences (12) 143 Net carrying amount at 30 June 11,056 13,643 1. 2023: Lease incentives received are deducted from this initial value in the measurement of the right-of-use asset. The Group leases office premises in the ordinary course of its business. The Group’s office premise leases comprise office building leases in ten cities and three countries in which the Group operates. The non-cancellable period of the leases ranges from 5 to 10 years with variable options to extend the lease terms. The lease payments are adjusted every year, based on contractual fixed percentage increases and in one instance additionally increased by the prevailing consumer price index (“CPI”) at the lease review date. Recognition and measurement At the lease commencement date, the Group recognises a right-of-use asset equal to the measurement of the lease liability less any lease incentives received, and a lease liability measured at the present value of future lease payments. As the interest rate implicit in the lease is not readily determinable, the Group uses its incremental borrowing rate to measure the lease liability. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically assessed for impairment losses, and adjusted for certain remeasurements of the lease liability resulting from lease modifications. Where the lease is subject to periodic adjustments based on consumer price indexes, the Group remeasures the lease liability with an unchanged discount rate and recognises the adjustment against the right-of-use asset. The adjustment is recognised when the change in payments is in effect. The Group has elected to exempt leases that have a shorter duration than one year and leases where the value of the underlying asset is considered insignificant. Costs in leasing contracts for offices that relate to the provision of services such as outgoings, maintenance and utilities are identified and treated separately as non-lease components. These costs are expensed as incurred. Significant accounting estimates and judgements – incremental borrowing rates and lease terms The incremental borrowing rate is determined for each lease using interest rates acquired from external financing sources and adjusted by management, as appropriate, to provide a borrowing rate that is representative of a collateralised amortising loan. At year end, there are four leases with options to renew for a further term ranging from five to seven years. The Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option to extend or an option to terminate if it is reasonably certain to exercise an extension option or to not exercise a termination option. Management considers all facts and circumstances that create an economic incentive to exercise an extension option or to not exercise a termination option. This judgment is based on factors such as contract rates compared to market rates, economic reasons, significance of leasehold improvements, termination and relocation costs. 46 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 16 – Intangible assets CONSOLIDATED Capitalised development costs $’000 Other intangibles $’000 Goodwill $’000 Total $’000 30 June 2024 Gross carrying amount – cost 14,084 5,027 39,170 58,281 Accumulated amortisation (1,400) (3,474) – (4,874) Total intangible assets, net 12,684 1,553 39,170 53,407 Represented by: Net carrying amount at 1 July 2023 – 2,026 39,089 41,115 Internally generated development costs 11,014 – – 11,014 Work in progress 3,070 – – 3,070 Additions – 5 – 5 Amortisation expenses and impairment (1,400) (470) – (1,870) Foreign exchange differences – (8) 81 73 Net carrying amount at 30 June 2024 12,684 1,553 39,170 53,407 30 June 2023 Gross carrying amount – cost – 5,035 39,089 44,124 Accumulated amortisation – (3,009) – (3,009) Total intangible assets, net – 2,026 39,089 41,115 Represented by: Net carrying amount at 1 July 2022 – 2,549 38,177 40,726 Internally generated development costs – – – – Additions – – – – Amortisation expenses and impairment – (520) – (520) Foreign exchange differences – (3) 912 909 Net carrying amount at 30 June 2023 – 2,026 39,089 41,115 Expected useful life 3–5 years 1–10 years Indefinite During the current reporting period, the Group conducted a review of its application of AASB 138 Intangible Assets (“the Standard”) and determined that certain development costs now meet the criteria for capitalisation as outlined in the Standard. This does not represent a change in the Company’s accounting policy but rather is the result of operational measures being put in place to reliably identify and measure specific development costs that meet the criteria for capitalisation under AASB 138 from 1 July 2023. As a result, the Company has capitalised qualifying development costs in accordance with AASB 138 in the current year of $14,084,000, before amortisation costs. Research costs are expensed in the period in which they are incurred. Capitalised development costs represent the up-front costs of developing new products or enhancing existing products to meet customer needs. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its costs can be measured reliably. The costs remain in work in progress during the development phase and are transferred to capitalised development costs when products are considered ready for their intended use. A portion of software development within the Group occurs contemporaneously with the research phase and ongoing operating and maintenance activities in supporting core customer systems. Where the expenditure related to the development activity cannot be reliably measured, the Group expends the amounts in the period they are incurred. 47 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 16 – Intangible assets (continued) Research and development expenses incurred relate to works provided by third parties and internal salaries and on-costs of employees. Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility, and the costs can be measured reliably. The key judgements relate to: ■determining the portion of the internal salary and on-costs that are directly attributable to development of the Group’s product suite and software; and ■identifying and assessing the technical feasibility of completing the intangible asset and generating future economic benefits. Intangible assets with finite lives are amortised on a straight-line basis over their estimated useful lives. Useful lives are reassessed each period. Assessments of useful lives and estimates of remaining useful lives require significant management judgement. The useful lives could change significantly as a result of technical innovations or some other event. The amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or items no longer in use will be written off or written down. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – ASSET IMPAIRMENT The Group tests intangible assets for impairment to ensure they are not carried at above their recoverable amounts: ■at least annually for goodwill and intangible assets with indefinite lives; and ■where there is an indication that the assets may be impaired (which is assessed at least each reporting date or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable). These tests for impairment are performed by assessing the recoverable amount of each individual asset or, if this is not possible, then the recoverable amount of the cash generating unit (CGU) to which the asset belongs. CGUs are the lowest levels at which assets are grouped and generate separately identifiable cash inflows. The recoverable amount is the higher of an asset or a CGU’s fair value less costs of disposal and value in use. The value in use calculations are based on discounted cash flows expected to arise from the asset. Management judgment is required in these valuations to forecast future cash flows and a suitable discount rate to calculate the present value of these future cash flows. The carrying value of goodwill is allocated to the Group’s cash generating units (“CGU”) identified as follows: CONSOLIDATED 2024 $’000 2023 $’000 Objective Keystone 6,144 5,965 Objective Planning and Building1 9,817 9,885 Objective Regulatory Solutions 16,720 16,720 Objective Content Solutions (2023: Objective 3Sixty) 6,489 6,519 Total goodwill 39,170 39,089 1. CGU in New Zealand. 48 Annual Report 2024 Objective Corporation Limited and its Controlled Entities TRANSFER/AMALGAMATION OF CGUS Simflofy Inc was acquired by the Group in March 2022. Since the time of the acquisition, the Company has utilised the acquired software to accelerate the development of Objective 3Sixty. This technology is now deeply embedded within the Content Solutions product portfolio and go to market plans, as a component of the Information Governance Platform. Assessing the value of the goodwill at the 3Sixty CGU level does not fully reflect the valuation derived by the Company- this assessment is only able to be done at the Content Solutions CGU level as Objective 3Sixty cannot generate cash flows that are largely independent of Information Governance Platform. On this basis, the Group on 1 July 2023 reassessed its CGUs. This assessment has resulted in changes to the CGU construct, including: a. the disbandment of the Objective 3Sixty CGU b. amalgamation of the Content & Processes CGU and the Objective 3Sixty CGU to form the new Content Solutions CGU The recoverable amount of Objective Keystone is determined based on value-in-use calculation. The calculation uses cash flow projections based on a five-year financial budget approved by management, extrapolated with an estimated general long-term compound annual growth of 10% (2023: 9.0%). The discount rate used of 15.5% (2023: 15.5%) is pre-tax and reflects specific risks related to the relevant operation. A terminal value based on the EBITDA exit multiple of 10x was used in the calculation in both 2024 and 2023. The recoverable amounts of Objective Planning and Building CGUs in New Zealand are determined based on value in-use calculation. The calculation uses cash flow projections based on a five-year financial budget approved by management, extrapolated with an estimated general long-term compound annual growth of 11% (2023: 9%). The discount rate used of approximately 15.5% (2023: 9.0%) is pre-tax and reflects specific risks related to the relevant operation. A terminal value based on the EBITDA exit multiple of 10x was used in the calculation in both 2024 and 2023. The recoverable amounts of Objective Regulatory Solutions CGUs is determined based on value in-use calculation. The calculation uses cash flow projections based on a five-year financial budget approved by management, extrapolated with an estimated general long-term compound annual growth of not more than 10.0% (2023: 10.0%). The discount rate used of approximately 15.5% (2023: 15.5%) is pre-tax and reflects specific risks related to the relevant operation. A terminal value based on the EBITDA exit multiple of 10x was used in the calculation in both 2024 and 2023. The recoverable amounts of Objective Content Solutions is determined based on value in-use calculation. The calculation uses cash flow projections based on a five-year financial budget approved by management, extrapolated with an estimated general long-term compound annual growth of 9%. The discount rate used of approximately 15.5% is pre-tax and reflects specific risks related to the relevant operation. A terminal value based on the EBITDA exit multiple of 10x was used in the calculation in 2024. As mentioned above, the “Content Solutions CGU” was established in the current year as a result of the previous CGU “Objective 3Sixty” being amalgamated. The comparative estimates for Objective 3Sixty include the long-term compound annual growth rate, discount rate, terminal value (EBITDA exit multiple) being 24%, 15.5%, and 10x respectively. The current financial forecasts used in the calculation is determined by management based on past performance and its expectations for market development and includes a number of initiatives designed to drive incremental sales and increased margins as well as reduce the costs of doing business. Management have assessed that the CGUs are sensitive to reasonably possible changes in the cash flow forecasts covering a period of five year and believe that any reasonably foreseeable changes in any of the above key assumptions would not cause the carrying amount of goodwill to exceed the recoverable amount. 49 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 17 – Trade and other payables CONSOLIDATED 2024 $’000 2023 $’000 Trade payables and accruals 7,092 7,199 Goods and services tax payable, net 2,652 4,096 Dividends payable 221 160 Total trade and other payables 9,965 11,455 Note 18 – Lease liabilities CONSOLIDATED 2024 $’000 2023 $’000 Current lease liabilities 2,759 2,532 Non-current lease liabilities 10,689 13,385 Total lease liabilities 13,448 15,917 The Group’s average incremental borrowing rate used is 4.89% (2023: 4.89%). Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable payments based on an index or rate and payments arising from options reasonably certain to be exercised. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or consolidated statement of profit or loss if the right-of-use asset is already reduced to zero. The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 30 June 2024 and 30 June 2023 are: CONSOLIDATED Minimum lease payments $’000 Finance charges $’000 Total $’000 30 June 2024 Within 1 year 3,296 (542) 2,754 1–2 years 3,303 (423) 2,880 2–3 years 2,861 (306) 2,555 3–4 years 2,246 (205) 2,041 4–5 years 1,364 (129) 1,235 After 5 years 2,056 (73) 1,983 Net carrying amount at 30 June 2024 15,126 (1,678) 13,448 30 June 2023 Within 1 year 3,163 (639) 2,524 1–2 years 3,275 (539) 2,736 2–3 years 3,282 (422) 2,860 3–4 years 2,844 (305) 2,539 4–5 years 2,247 (205) 2,042 After 5 years 3,418 (202) 3,216 Net carrying amount at 30 June 2023 18,229 (2,312) 15,917 50 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 19 – Provisions CONSOLIDATED 2024 $’000 2023 $’000 Current Employee benefits 6,163 5,847 Total current provisions 6,163 5,847 Non-current Employee benefits 606 497 Other provisions 420 411 Total non-current provisions 1,026 908 Total provisions 7,189 6,755 RECOGNITION AND MEASUREMENT A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made as to the amount of the obligation. The amount recognised is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. A provision is made for benefits accruing to employees in respect of annual leave and long service leave. Liabilities expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS – EMPLOYEE BENEFITS ASSUMPTIONS In estimating the value of employee benefits, consideration is given to expected future salary and wage levels (including on-cost rates), experience of employee departures and periods of service. The assumptions are reviewed periodically and given the nature of the estimate, reasonably possible changes in assumptions are not considered likely to have a material impact. Where a provision is measured using the cash flows estimated to settle the obligation, the cash flows are discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Discount rates are reviewed periodically and given the nature of the estimate, reasonably possible changes are not considered likely to have a material impact. Note 20 – Issued capital CONSOLIDATED 2024 2023 Number of shares $’000 Number of shares $’000 Share capital 95,090,246 fully paid ordinary shares (2023: 95,116,253) Movement: Opening balance 95,116,253 11,722 94,856,118 11,310 Issue of shares1 – – 150,000 413 Share options exercised by employees2 183,750 663 230,000 278 Buy-back of shares3 (209,757) – (99,865) – Shares issued to OCL Trust4 – – (20,000) (279) Closing balance 95,090,246 12,385 95,116,253 11,722 1. Represents issue of ordinary shares as a result of options exercised under the Group’s Employee Incentive Plan and in cash. 2. Represents proceeds from share issues associated with limited recourse loans issued under the Objective Employee Incentive Plan and the Objective Employee Equity Plan (Refer Note 27). 3. The payment for share buy-backs are recognised in a share buy-back reserve within equity. 4. Represents ordinary shares held by the Objective Corporation Limited Employee Share Trust as at 30 June 2022 that were subsequently allocated to participants under the Objective Employee Equity Plan during the year ended 30 June 2023. 51 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 20 – Issued capital (continued) SHARE CAPITAL Holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank after all other creditors and are fully entitled to any proceeds on liquidation. The ordinary shares have no par value and the Company does not have a limited amount of authorised capital. Capital raising costs are deducted from contributed equity. OPTIONS ISSUED DURING THE YEAR UNDER THE EMPLOYEE INCENTIVE PLAN The Company issues employee share options pursuant to the Employee Incentive Plan. Under the terms and conditions of the current Employee Incentive Plan, selected employees are granted the right to acquire shares at a nominated exercise price subject to agreed service and performance criteria (i.e. vesting conditions) being satisfied. On satisfaction of the vesting conditions the shares are issued to the employee with the exercise price being financed by a limited recourse loan. No amount is paid or payable by the employee on receipt of these shares. Dividends declared and paid on the issued shares are for the benefit of the employee. The employee is not permitted to deal in the shares until the limited recourse loan has been repaid. The value of the limited recourse loans and issue price of the shares are not recorded as loans receivable or share capital of the Company until repayment or part repayment of the loans occur. The Employee Incentive Plan shares are entitled to dividends. The dividends are applied to reduce the loans and increase share capital in accordance with both the current terms of the Employee Inventive Plan and AASB 2: Share-based Payment. Each option entitles the holder to the right to acquire one ordinary share at the nominated exercise price during the period commencing on the available for exercise date of the options. THE OCL TRUST EMPLOYEE EQUITY PLAN On 22 December 2021, the Group established The Objective Corporation Limited Employee Share Trust (OCL Trust) and appointed Certane CT Pty Ltd to administer the Group’s employee share schemes as the Trustee of the Trust for the purposes of holding certain shares in the Company on trust for the benefit of the participants in the Objective Employee Incentive Plan and Objective Employee Equity Plan. The OCL Trust is consolidated, as the substance of the relationship is that the trust is controlled by the Group. Through contributions to the OCL Trust, the Group typically purchases shares in the Company. Shares acquired are held by the OCL Trust, are disclosed as Treasury shares and are deducted from total equity. Refer Note 27 for further details. Note 21 – Dividends and franking credits (A) DIVIDENDS Dividend type Cents per share Franking Total amount $’000 Date paid/ payable 2024 Final franked1 8.0 100% 7,612 16/09/2024 2024 Final unfranked1 9.0 Nil 8,564 17/09/2024 2023 Final unfranked 13.5 Nil 12,852 14/09/2023 1. The final franked and final unfranked dividends for the year ended 30 June 2024 have not been recognised in this financial report because it was resolved to be paid after 30 June 2024. (B) FRANKING CREDITS 2024 $’000 2023 $’000 The balance of franking credit account at balance date adjusted for the payment of current tax liability/receipt of current tax asset 3,285 729 52 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 22 – Reserves CONSOLIDATED Treasury shares reserve Share buy-back reserve $’000 Share-based payments reserve $’000 Foreign currency translation reserve $’000 Total $’000 No. of shares $’000 At 30 June 2024 Opening balance – – (12,051) 2,951 (1,192) (10,292) Share-based payment – – – 2,005 – 2,005 Shares in the Company purchased by OCL Trust – – – – – – Buy-back of shares – – (2,484) – – (2,484) Translation of foreign operations – – – – 90 90 Closing balance – – (14,535) 4,956 (1,102) (10,681) At 30 June 2023 Opening balance 20,000 (279) (10,812) 2,351 (2,067) (10,807) Share-based payment – – – 600 – 600 Shares in the Company purchased by OCL Trust (20,000) 279 – – – 279 Buy-back of shares – – (1,239) – – (1,239) Translation of foreign operations – – – – 875 875 Closing balance – – (12,051) 2,951 (1,192) (10,292) TREASURY SHARES RESERVE Treasury shares are ordinary shares in the Company held by OCL Trust in respect of equity incentive plan awards to employees. OCL Trust is a controlled entity and holds shares in the Company. As a result, the OCL Trust’s shareholding in the Company is disclosed as Treasury shares and deducted from total equity (in the Treasury Shares Reserve). When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction, if any, is transferred to/from retained earnings. SHARE BUY-BACK RESERVE The share buy-back reserve represents the value of the Company’s shares which were purchased and subsequently cancelled. The cancellation of the shares creates a non-distributable reserve. FOREIGN CURRENCY TRANSLATION RESERVE Exchange differences arising on translation of the financial statements of the Group’s foreign controlled entities into Australian dollars are in other comprehensive income and accumulated in a separate reserve within equity. SHARE-BASED PAYMENTS RESERVE The share-based payments reserve is used to recognise the share-based payments expense resulting from the value of share options issued to key management personnel and employees under the Group’s Employee Incentive Plan and Objective Employee Equity Plan. Further information about share-based payments to employees is made in Note 27. 53 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 23 – Financial risk management and fair values Exposure to credit, liquidity, interest rate and currency risks arises in the normal course of the Group’s business. The Group’s exposure to these risks and the financial risk management policies and practices used by the Group to manage these risks are described below. (A) CREDIT RISK Financial assets which potentially subject the Group to credit risk consist principally of cash, short-term deposits, trade debtors and contract assets. The Group’s deposits and cash are placed with major financial institutions with sound credit ratings. Trade debtors and contract assets are presented net of the allowance for expected credit losses. Credit risk with respect to trade debtors is limited due to the large number of customers comprising the Group’s customer base are government organisations or their diverse dispersion across different industries and geographical areas. Accordingly, the Group has no significant concentration of credit risk. The Group manages credit risks by monitoring credit ratings and limiting the aggregate risk to any individual counterparty. The recoverability of trade debtors and contract assets at 30 June 2024 have been assessed and an amount of $432,000 has been estimated as expected credit loss allowance in accordance with AASB 9 (Refer Note 11(a)). The below table summarises the Group’s exposure to credit risk at the end of the reporting period: CONSOLIDATED 2024 $’000 2023 $’000 Cash and cash equivalents1 95,979 72,519 Trade and other receivables, at gross 4,710 20,688 Contract assets, at gross 3,027 3,252 Ageing analysis of trade and other receivables is as follows: Fully performing debts 6,500 17,239 Past due more than 30 days 270 2,294 Past due more than 60 days 97 308 Past due more than 90 days 870 847 Total 7,737 20,688 1. The Group held cash and cash equivalents with banks and financial institution counterparties, the majority of which are rated AA- (long term) to F1+ (short term), based on Fitch ratings. AA ratings denote expectations of very low default risk and F1 indicates the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. Where the liquidity profile is particularly strong, a “+” is added to the assigned rating. (B) CURRENCY RISK The Group is exposed to foreign currency risk primarily as a result of operations in the Asia Pacific region, the United Kingdom, Singapore and the United States of America. The Group also has transactional currency exposures arising from sales and purchases that are denominated in currencies other than the functional currency of the operations to which they relate. The currencies giving rise to foreign currency risk are primarily denominated in Pounds Sterling (“GBP”), United Stated dollars (“USD”), New Zealand dollars (“NZD”), Singapore dollars (“SGD”) and Euro (EUR). The Group’s exposure is to the movement in foreign exchange rates is partly mitigated by a natural hedge arising from operations in these countries. The Group regularly monitors its foreign currency exposure which includes considering the level of cash in foreign currency and cash flow forecasting. 54 Annual Report 2024 Objective Corporation Limited and its Controlled Entities The summary quantitative data about the Group’s exposure to foreign currency risk is as follows: 30 June 2024 GBP’000 NZD’000 SGD’000 USD’000 EUR’000 Cash and cash equivalents 1,358 1,900 3 409 25 Trade and other receivables – 188 10 1 – Trade and other payables – – – 151 – Impact on group’s profit or loss after tax if exchange rate had moved by 5%, with all other variables unchanged 86 133 1 36 2 30 June 2023 GBP’000 NZD’000 SGD’000 USD’000 EUR’000 Cash and cash equivalents 202 19 3 199 19 Trade and other receivables 7 712 4 105 1 Trade and other payables – 1 – 168 – Impact on group’s profit or loss after tax if exchange rate had moved by 5%, with all other variables unchanged 14 46 – 9 1 (C) INTEREST RATE RISK The Group’s cash and cash equivalents are subject to interest rate fluctuations. At reporting date if interest rates had been 1% higher or lower and all other variables were held constant, the Group’s profit or loss after tax would increase or decrease by $672,000 (2023: $508,000). (D) LIQUIDITY The tables below present the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. CONSOLIDATED Less than 1 year $’000 1–5 years $’000 5+ years $’000 Total contractual cashflows $’000 Carrying amount of liabilities $’000 30 June 2024 Trade and other payables 9,965 – – 9,965 9,965 Lease liabilities 3,296 11,212 617 15,125 13,449 Contingent consideration 94 – – 94 94 Total non-derivatives 13,355 11,212 617 25,184 23,508 30 June 2023 Trade and other payables 11,455 – – 11,455 11,455 Lease liabilities 3,167 11,647 3,415 18,229 15,917 Contingent consideration 92 115 – 207 207 Total non-derivatives 14,714 11,762 3,415 29,891 27,579 As the Group is in a net financial assets position, the Directors are of the opinion that the Group will be able to pay off its debts as and when they are due and payable. Capital management Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long‑term shareholder value and ensure that the Group can fund its operations and continue as a going concern. The Group’s capital and debt include ordinary share capital and financial liabilities, supported by financial assets. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of cash levels, distributions to shareholders and share issues. The total equity of the Group at 30 June 2024 was $92,301,000 (2023: $73,549,000) and total cash and cash equivalents at 30 June 2024 were $95,979,000 (2023: $72,519,000). The Group is not subject to any externally imposed capital requirements. 55 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 24 – Subsidiaries and other controlled entities The consolidated financial statements incorporate the assets, liabilities and financial results of the following subsidiaries and other controlled entities in accordance with the accounting policies of the Group. OWNERSHIP Name of subsidiary Country of Incorporation 2024 2023 Objective RegTech Pty Limited Australia 100% 100% Objective Corporation Solutions NZ Limited New Zealand 100% 100% Objective Corporation Singapore Pte Limited Singapore 100% 100% Objective Corporation North America Inc United States of America 100% 100% Objective Corporation UK Limited United Kingdom 100% 100% Objective Keystone Limited1 United Kingdom n/a 100% GoCouncil Limited New Zealand 50% 50% The Objective Corporation Limited Employee Share Trust Australia n/a n/a 1. Objective Keystone Limited, which had been dormant since FY2022, was dissolved on 14 November 2023. Note 25 – Parent entity disclosures (A) SUMMARY STATEMENT OF FINANCIAL POSITION 2024 $’000 2023 $’000 Current assets 54,542 56,924 Non-current assets 56,894 52,649 Total assets 111,436 109,573 Current liabilities 44,782 51,226 Non-current liabilities 6,915 8,702 Total liabilities 51,697 59,928 Share capital 12,384 11,722 Reserves (9,574) (9,101) Retained earnings 56,929 47,024 Total equity 59,739 49,645 (B) SUMMARY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 2024 $’000 2023 $’000 Profit for the year 22,756 31,822 Total comprehensive income for the year 22,756 31,822 56 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Note 26 – Related party disclosures The parent entity in the Group is Objective Corporation Limited. Interests in subsidiaries and equity accounted investees are set out under Note 24. Details of transactions between the Group and other related parties are disclosed below. (A) KEY MANAGEMENT PERSONNEL REMUNERATION Total remuneration paid or payable to directors and key management personnel is set out below: CONSOLIDATED 2024 $ 2023 $ Short-term employee benefits 781,924 852,754 Long-term employee benefits 8,016 21,354 Post-employment benefits 56,534 62,060 Share-based payments expense 402,546 138,544 Total remuneration paid or payable 1,249,020 1,074,712 Details of remuneration and the Objective Corporation Limited equity holdings of Directors and other key management personnel are shown in the Remuneration Report on pages 24 to 26. (B) OTHER TRANSACTIONS WITH DIRECTORS OR OTHER KEY MANAGEMENT PERSONNEL Other transactions entered into during the financial year with directors of Objective Corporation Limited and other key management personnel of the Group and with their closely related entities which are within normal customer or employee relationships on terms and conditions no more favourable than those available to other customers, employees or shareholders included: ■contracts of employment (refer Remuneration Report) and reimbursement of expenses; ■equity holdings and acquisition of shares in Objective Corporation Limited under the employee share plans; and ■dividends from shares in Objective Corporation Limited. (C) OTHER RELATED PARTIES No material amounts were receivable from, or payable to, other related parties as at 30 June 2024 (2023: nil), and no material transactions with other related parties occurred during the year. 57 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 27 – Share based payments Objective Corporation Limited operates two share-based payment plans: ■Objective Employee Incentive Plan ■Objective Employee Equity Plan EMPLOYEE INCENTIVE PLAN (EIP) The Objective Employee Incentive Plan (EIP) was approved at the 2003 Annual General Meeting of the Company. The EIP is described as follows: Offers Under the EIP, the Board may offer to any employee either options to acquire shares or loans to acquire shares in the Company. Tony Walls, Chief Executive Officer will not be participating in the EIP. The options expire ten years after the date of grant and are subject to service and performance conditions; however, they are not exercisable until one year after grant and released in four equal tranches on each anniversary of grant date. If a participant under the EIP ceases to be employed by the Company, any unexercised option will be forfeited. Price The Board has discretion to grant options for a fee and set the exercise price and term of the options. Quotation Options issued under the EIP will not be quoted on the ASX. Where the Company issues options and the options are exercised, the Company will apply to have the issued shares quoted on the ASX. Maximum number of shares or options The Company must not issue shares or options to any employee if to do so would contravene applicable laws or result in any employee holding an interest in more than 5% of the shares in the Company. Sales restrictions Options issued under the EIP are not transferable. Shares acquired under the EIP are not transferable unless any loan to acquire the shares has been repaid in full. New shares All shares issued on the exercise of options will rank equally with all existing shares from the date of issue. Dividends All shares acquired pursuant to the EIP rank equal in all respects and will be entitled to any dividends declared by the Company. Any dividends paid on shares acquired under the EIP will be offset against the loan balance outstanding to acquire shares under the EIP. Restrictions The Board may impose vesting and performance conditions before which options cannot be exercised or the shares sold. The options issued pursuant to the EIP will usually lapse and the loans to acquire shares will usually become repayable if the holder ceases to be an employee. Participation in future issues Under the Employee Incentive Plan’s rules, the number of shares over which an option is granted and or the exercise price of the options may be altered in the event of a reconstruction of the Company’s share capital or a bonus or rights issue of shares to shareholders. Shares acquired under the EIP will rank equal in all respects with existing shares. Loans The Board has discretion to provide a loan for the acquisition of shares in the Company under terms and conditions as set out in the loan agreement. Fair value of share options granted under the EIP in the year No share options were granted under the EIP during the year ended 30 June 2024. 58 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Movement in share options under the EIP during the year The following reconciles the share options outstanding under the EIP at the beginning and end of the current year: Grant date Expiry date Option exercise price ($) Balance 1 July 2023 Granted Exercised Forfeited/ cancelled Balance 30 June 2024 24/02/2015 24/02/2025 $1.17 125,000 – – – 125,000 01/01/2019 01/01/2029 $2.75 308,750 – (62,500) – 246,250 01/07/2020 01/07/2030 $7.50 405,000 – (113,750) – 291,250 04/01/2021 31/01/2025 $12.50 200,000 – – (200,000) – 1,038,750 – (176,250) (200,000) 662,500 Weighted average exercise price $6.29 – $5.82 – $4.54 Weighted average share price at date of exercise $10.16 Vested and exercisable at the end of the year 620,000 620,000 Vested and unexercisable at the end of the year 418,750 42,500 Movement in share options under the EIP during the prior year The following reconciles the share options outstanding under the EIP at the beginning and end of the prior year: Grant date Expiry date Option exercise price ($) Balance 1 July 2022 Granted Exercised Forfeited/ cancelled Balance 30 June 2023 24/02/2015 24/02/2025 $1.17 125,000 – – – 125,000 29/07/2018 29/07/2028 $2.75 50,000 – (50,000) – – 01/01/2019 01/01/2029 $2.75 613,750 – (305,000) – 308,750 01/07/2020 01/07/2030 $7.50 425,000 – (20,000) – 405,000 24/02/2015 24/02/2025 $12.50 200,000 – – – 200,000 1,413,750 – (375,000) – 1,038,750 Weighted average exercise price $5.42 – $3.00 – $6.29 Weighted average share price at date of exercise $13.97 Vested and exercisable at the end of the year 411,250 620,000 Vested and unexercisable at the end of the year 1,002,500 418,750 The share options outstanding under the EIP at the end of the year had a weighted average remaining contractual life of 4.4 years (2023: 4.9 years). 59 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 27 – Share based payments (continued) EMPLOYEE EQUITY PLAN (EEP) The Objective Employee Equity Plan (EEP) was approved at the 2021 Annual General Meeting of the Company and is governed by the EEP Rules. Under the EEP, the Company may grant Rights, Options and restricted shares (i.e., shares subject to disposal restrictions until service-based vesting conditions are met) (collectively, Awards). Rights and Options granted under the EEP are indeterminate rights for tax purposes as the Board has the discretion to settle Rights and Options granted under the Plan in cash. Under the EEP, there are 71,100 Rights (granted for no consideration to Participants with vesting subject to a service-based vesting condition) that remain outstanding at balance date. Subject to vesting condition being met, the Rights become exercisable to acquire Company shares (or a cash payment of equivalent value, at the Board’s discretion). As at the date of this annual report, the exercise price of Rights granted under the EEP is nil. Awards granted during the current year under the EEP has been classified as an equity-settled share-based payment arrangement. The fair value at grant date of equity-settled share-based payment transactions is expensed over the vesting period with a corresponding increase shared based payment reserve in equity, taking into account the best available estimate of the number of shares expected to vest under the service and performance conditions. For awards that contain graded service condition periods, the Company recognises the estimated share based payment expense on a straight line basis over a requisite service period of one to five years. The Company estimates the expected service condition fulfilment and recognises the share based payment expense only for those awards expected to meet the service condition. This estimate is reassessed by management each reporting period and may change based upon new facts and circumstances. Changes in assumptions impact the total amount of expense and are recognised over the service condition period. FAIR VALUE OF SHARE OPTIONS GRANTED IN THE YEAR Fair value of share options granted during the year ended 30 June 2024 are provided in the table below: Number of options granted Grant date Expiry date Fair value at grant date2,3 ($) Fair value at grant date ($) Exercise price ($) Risk free interest rate (%) Expected volatility3 (%) Dividend yield (%) 965,0001 29/09/2023 01/01/2028 $0.73 $1.83 $10.35 3.86% 30.0% 1.16% 187,500 29/09/2023 01/01/2028 $2.08 $2.83 $10.35 3.86% 30.0% 1.16% 550,000 29/09/2023 01/01/2028 $0.73 $1.56 $14.85 3.86% 30.0% 1.16% 40,000 30/01/2024 01/01/2028 n/a $2.08 $12.00 3.86% 30.0% 1.16% 100,000 22/02/2024 01/01/2028 n/a $2.08 $12.00 3.86% 30.0% 1.16% 1. These options have an exercise restriction that is dependent upon the Company share price reaching $20/share prior to 15 December 2027. 2. As previously presented in the interim financial report. 3. Management has revised its estimate of the expected volatility of share options granted during the year from 19.46% to 30.0%, which impacted the disclosed fair value of the options granted at grant date, as previously presented in the group’s interim report for the half year ended 31 December 2023. The impact of this revision in the interim financial report for the half year ended 31 December 2023 is not material. No new share options were granted under the EEP during the year ended 30 June 2023. The fair values of awards are determined using Black-Scholes and Monte-Carlo Simulation option pricing models taking into consideration the terms and conditions upon which the options were granted. Assumptions for expected volatility and dividend yield were based on daily observations for historic data. Inputs for risk free rate and grant date share price was determined by the prevailing prices on the date of issue. 60 Annual Report 2024 Objective Corporation Limited and its Controlled Entities MOVEMENT IN SHARE OPTIONS UNDER THE EEP The following reconciles the share options outstanding under the EEP at the beginning and end of the current year: Grant date Expiry date Exercise price ($) Balance 1 July 2023 Granted Exercised Forfeited/ cancelled Balance 30 June 2024 30/04/2022 30/04/2027 $14.85 100,000 – – – 100,000 29/09/2023 01/01/2028 $10.35 – 965,000 – – 965,000 29/09/2023 01/01/2028 $10.35 – 187,500 – – 187,500 29/09/2023 01/01/2028 $14.85 – 550,000 – – 550,000 30/01/2024 01/01/2028 $12.00 – 40,000 – – 40,000 22/02/2024 01/01/2028 $12.00 – 100,000 – – 100,000 100,000 1,842,500 – – 1,942,500 Weighted average exercise price $14.85 $11.82 – – $11.97 Vested and exercisable at end of the year – 25,000 Vested and unexercisable at end of the year – 187,500 The following reconciles the share options outstanding under the EEP at the beginning and end of the prior year: Grant date Expiry date Exercise price ($) Balance 1 July 2022 Granted Exercised Forfeited/ cancelled Balance 30 June 2023 30/04/2022 30/04/2027 $14.85 100,000 – – – 100,000 Weighted average exercise price $14.85 – – – $14.85 Vested and exercisable at end of the year – – Vested and unexercisable at end of the year – – The share options outstanding under the EEP at the end of the year had a weighted average remaining contractual life of 3.47 years (2023: 5.0 years). SHARE RIGHTS GRANTED IN THE YEAR Fair value of share rights granted under the EEP during the year ended 30 June 2024 are: Rights on Issue Grant Date Expiry Date Number Rights exercisable at $nil 24/10/2023 06/10/2028 6,000 Rights exercisable at $nil 29/09/2023 01/01/2028 17,100 Total rights on issue 23,100 Weighted average exercise price $nil Fair value of share rights granted under the EEP during the year ended 30 June 2023 are: Rights on Issue Grant Date Expiry Date Number Rights exercisable at $nil 02/11/2022 02/11/2027 10,000 Rights exercisable at $nil 28/11/2022 30/11/2027 6,400 Total rights on issue 16,400 Weighted average exercise price $nil 61 CEO’s Report Business Line Review Sustainability Financial Statements Notes to the Financial Statements For the year ended 30 June 2024 Note 27 – Share based payments (continued) MOVEMENT IN SHARE RIGHTS UNDER THE EEP The following reconciles the share rights outstanding under the EEP at the beginning and end of the current year: Grant date Expiry date Exercise price ($) Balance 1 July 2023 Granted Exercised Forfeited/ cancelled Balance 30 June 2024 30/04/2022 22/12/2026 – 45,000 – (7,500) – 37,500 21/03/2022 21/03/2027 – 4,000 – – – 4,000 28/02/2022 28/02/2027 – 5,000 – – – 5,000 02/11/2022 02/11/2027 – 10,000 – (2,500) – 7,500 24/10/2023 06/10/2028 – – 6,000 (6,000) – – 29/09/2023 01/01/2028 – – 17,100 – – 17,100 64,000 23,100 (16,000) – 71,100 Weighted average exercise price $nil $nil $nil $nil $nil Weighted average share price at date of exercise $12.68 Vested and exercisable at end of the year – – Vested and unexercisable at end of the year – – The following reconciles the share rights outstanding under the EEP at the beginning and end of the prior year: Grant date Expiry date Exercise price ($) Balance 1 July 2022 Granted Exercised Forfeited/ cancelled Balance 30 June 2023 30/04/2022 22/12/2026 – 50,000 – (5,000) – 45,000 21/03/2022 21/03/2027 – 4,000 – – – 4,000 28/02/2022 28/02/2027 – 5,000 – – – 5,000 02/11/2022 02/11/2027 – – 10,000 – – 10,000 28/11/2022 30/11/2027 – – 6,400 (6,400) – – 59,000 16,400 (11,400) – 64,000 Weighted average exercise price $nil $nil $nil $nil $nil Vested and exercisable at end of the year – – Vested and unexercisable at end of the year – – 62 Annual Report 2024 Objective Corporation Limited and its Controlled Entities RECOGNITION AND MEASUREMENT The Group provides benefits to employees (including Directors) in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). The Group has two plans in place that provides these benefits. It is the Employee Incentive Plan and the Employee Equity Plan. The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using a Black & Scholes and Monte-Carlo Simulation option pricing models. The cost of equity-settled transactions is recognised in the consolidated statement of profit or loss, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period), ending on the date on which the relevant employees become fully entitled to the award. At each subsequent reporting date until the end of the service condition period, the cumulative charge to the consolidated statement profit or loss is the product of (i) the grant date fair value of the award; (ii) the current best estimate of the number of awards that will vest, taking into account such factors as the likelihood of employee turnover during the service condition period; and (iii) the expired portion of the service condition period. The charge to the consolidated statement of profit or loss for the period is the cumulative amount as calculated above, less the amounts already charged in previous periods. There is a corresponding credit to equity. Note 28 – Contingent liabilities CONSOLIDATED 2024 $’000 2023 $’000 Contingent liabilities, capable of estimation, arise in respect of the following categories: Bank guarantees 1,488 1,488 Total contingent liabilities 1,488 1,488 Bank guarantees are issued to contract counterparties in the normal course of business as security for the performance by Group entities of various contractual obligations. Additionally, a performance guarantee has been provided by the Company to Objective Corporation UK Limited (subsidiary) with regards to the provision of software support services for customers. Note 29 – Subsequent events DIVIDENDS For dividends resolved to be paid after 30 June 2024, refer to Note 21. There has not arisen in the interval between 30 June 2024 and the date of this report, any matter or circumstance 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 financial years. Note 30 – Approval of financial statements The financial statements were approved by the board of directors and authorised for issue on 21 August 2024. 63 CEO’s Report Business Line Review Sustainability Financial Statements Consolidated Entity Disclosure Statement As at 30 June 2024 BODY CORPORATES TAX RESIDENCY Entity name Entity type Place formed or incorporated % of share capital held Australian or foreign Foreign jurisdiction Objective Corporation Limited Body corporate Australia N/A Australian2 N/A Objective RegTech Pty Limited Body corporate Australia 100% Australian2 N/A Objective Corporation Solutions NZ Limited1 Body corporate New Zealand 100% Foreign New Zealand Objective Corporation Singapore Pte Limited Body corporate Singapore 100% Foreign Singapore Objective Corporation North America Inc Body corporate United States of America 100% Foreign United States of America Objective Corporation UK Limited Body corporate United Kingdom 100% Foreign United Kingdom The Objective Corporation Limited Employee Share Trust Trust N/A N/A Australian N/A GoCouncil Limited Body corporate New Zealand 50% Foreign New Zealand 1. Participant in the GoCouncil Limited joint venture which is consolidated in the consolidated financial statements. 2. This entity is part of a tax consolidated group under Australian taxation law, for which Objective Corporation Limited is the head entity. At the end of the financial year, no entity (other than identified above) within the consolidated entity was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity. Basis of preparation This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements. Determination of tax residency Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there are different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: AUSTRALIAN TAX RESIDENCY The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR 2018/5 and PCG 2018/9. FOREIGN TAX RESIDENCY Where necessary, the consolidated entity has used independent tax advisers to assist in its determination of tax residency to ensure applicable foreign tax legislation has been complied with (see section 295(3A)(vii) of the Corporations Act 2001). Partnerships and trusts Australian tax law generally does not contain corresponding residency tests for partnerships and trusts and these entities are typically taxed on a flow-through basis. Additional disclosures on the tax status of partnerships and trusts have been provided where relevant. 64 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Directors’ Declaration The Directors of the Company declare that: 1. The attached financial statements and notes set out on pages 27 to 63 are in accordance with the Corporations Act 2001 (Cth); and a) Comply with Australian Accounting Standards and the Corporations Regulations 2001; b) As stated in Note 1, the consolidated financial statements also comply with International Financial Reporting Standards; c) Give a true and fair view of the financial position of the Group as at 30 June 2024 and its performance for the year ended on that date; d) The consolidated entity disclosure statement set out on page 64 is true and correct; and e) This declaration has been made after receiving the declarations required to be made by the chief executive officer and chief financial officer to the directors in accordance with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2024. 2. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of Directors. Tony Walls Director Date: 21 August 2024 65 CEO’s Report Business Line Review Sustainability Financial Statements Independent Auditor’s Declaration Pitcher Partners Sydney ABN 17 795 780 962 Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000 Postal address GPO Box 1615 Sydney NSW 2001 +61 2 9221 2099 sydneypartners@pitcher.com.au pitcher.com.au Pitcher Partners is an association of independent firms. Pitcher Partners Sydney ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF OBJECTIVE CORPORATION LIMITED In relation to the independent audit for the year ended 30 June 2024 to the best of my knowledge and belief there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001; and b) no contraventions of APES 110 Code of Ethics for Professional Accountants (including Independence Standards). This declaration is in respect of Objective Corporation Limited and the entities it controlled during the year. Nathan Balban Partner Pitcher Partners Sydney 21 August 2024 66 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Independent Auditor’s Report Pitcher Partners is an association of independent firms. Pitcher Partners Sydney ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney Pitcher Partners Sydney ABN 17 795 780 962 Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000 Postal address GPO Box 1615 Sydney NSW 2001 +61 2 9221 2099 sydneypartners@pitcher.com.au pitcher.com.au INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF OBJECTIVE CORPORATION LIMITED ABN 16 050 539 350 Report on the Audit of the Financial Report Opinion We have audited the financial report of Objective Corporation Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements including material accounting policy information, the consolidated entity disclosure statement and the directorsʼ 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 Groupʼs financial position as at 30 June 2024 and of its financial performance for the year then ended; 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 Auditorʼs 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 Boardʼs 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditorʼs report. 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 judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 67 CEO’s Report Business Line Review Sustainability Financial Statements Independent Auditor’s Report INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF OBJECTIVE CORPORATION LIMITED ABN 16 050 539 350 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Key Audit Matter How our audit addressed the Key Audit Matter Revenue from Contracts with Customers The Group applies AASB 15 Revenue from Contracts with Customers to account for the following key revenue streams: Software license revenue; Implementation and consulting revenue; and Other ancillary revenue such as hosting and support services fees. The recognition of revenue and associated contract assets and contract liabilities is a key audit matter due to the significant judgements surrounding the timing of revenue recognition. Note 5 to the financial statements sets out the Groupʼs revenue streams and the associated accounting policies. Note 12 to the financial statements sets out the associated contract assets and contract liabilities. We performed the following audit procedures: • Obtained an understanding of the Groupʼs revenue recognition policies and assessed the policies applied for compliance with the relevant accounting standards. • Documented and evaluated the design and, implementation, of relevant controls over the timing of revenue recognition. • On a sample basis, selected revenue contracts and reviewed the contract to identify the key provisions and conditions that indicated that performance obligations have been satisfied for revenue recognised under AASB 15: Revenue from Contracts with Customers. • On a sample basis, tested revenue transactions during the reporting period and at period-end to agree the total transaction price to customer contracts, work in progress records, milestone acknowledgements and receipts from customers, where applicable. • For customer contracts tested, evaluated the judgement applied by Management in supporting the timing of revenue recognition. We also assessed the adequacy of the disclosures in Notes 5 and 12 to the financial statements. Accounting for software development costs As set out in Note 16 to the financial statements, the Group capitalises costs related to the development of software products in accordance with AASB 138 Intangible Assets. The accounting for capitalised software development costs is a key audit matter due to: Specific judgement applied in assessing whether the capitalised costs are directly attributable to the relevant product developed and eligible for capitalisation under the criteria prescribed by Australian Accounting Standards; The assessment of the useful life of the asset and timing of amortisation; and The assessment of future economic benefits and any indicators of impairment of capitalised software development costs. We performed the following audit procedures: Assessed the nature of the Groupʼs products and the policy of capitalisation of software development costs for compliance with the criteria in AASB 138 Intangible Assets. Documented and evaluated the design and implementation of the relevant controls in place over the process for recording and identifying qualifying costs to be capitalised. Held inquiries with management and R&D team members, to understand the development activities undertaken. Tested the appropriateness and eligibility of costs capitalised with reference to internal documentation including, on a sample basis: agreeing payroll costs capitalised to supporting payroll and time records, and cost allocation calculations; 68 Annual Report 2024 Objective Corporation Limited and its Controlled Entities INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF OBJECTIVE CORPORATION LIMITED ABN 16 050 539 350 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Key Audit Matter How our audit addressed the Key Audit Matter agreeing other capitalised costs to invoices or other supporting documentation and assessed the Groupʼs determination that the service or goods received is directly attributable to development activities; Challenged the appropriateness of the amortisation period including the commencement date of amortisation for the capitalised software development costs and the timing of amortisation; and Evaluated the Groupʼs indicators of impairment and the recoverability of the carrying value of the capitalised software development asset, with reference to historical and expected future cash inflows. We also assessed the adequacy of the disclosures in Note 16 to the financial statements. Impairment of Intangible Assets At 30 June 2024 the consolidated statement of financial position of the Group includes goodwill and other intangible assets amounting to $53.4 million. The Group performs an annual impairment test of goodwill and other intangible assets across its Cash Generating Units (CGUʼs) and has determined recoverable amounts based on value-in-use calculations. The carrying value of goodwill and other intangible assets is a key audit matter because of the significant judgements applied in the value-in-use models, including estimates of cash flow forecasts, growth rates, discount rates and terminal value calculations. Note 16 to the financial statements sets out the Groupʼs accounting policies, allocation of goodwill to CGUʼs and key estimates adopted in determining the recoverable amount. We performed the following audit procedures: Assessed managementʼs determination of CGUʼs and allocation of goodwill to the carrying value of CGUʼs based on our understanding of the nature of the Groupʼs business. Understood and evaluated the design and implementation of relevant controls over information used as part of assessing impairment of intangible assets. Tested the mathematical accuracy of the value in use models. Compared cash flow forecasts to the Board approved budgets and assessed the historical accuracy of forecasting. In conjunction with our valuation experts, we assessed and challenged significant judgements used by management in the value-in-use models, including estimates of cash flow forecasts, growth rates, discount rates and terminal value calculations; and Performed sensitivity analysis on the growth rates and discount rates used in the value-in-use models. We also assessed the adequacy of the disclosures in Note 16 to the financial statements. 69 CEO’s Report Business Line Review Sustainability Financial Statements Independent Auditor’s Report INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF OBJECTIVE CORPORATION LIMITED ABN 16 050 539 350 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Share-based payments The Group applies AASB 2 Share-Based Payments to account for rights and options issued under the Employee Equity Plan. Share-based payments is a key audit matter as the fair value of rights and options issued is complex and subject to significant management estimates and judgement. Note 6 to the financial statements sets out the share-based payments expense recognised during the year. Note 22 to the financial statements sets out the movements in the share-based payments reserve during the year. Note 27 to the financial statements sets out the related disclosures to the Employee Equity Plan. We performed the following audit procedures: Reviewed and agreed the key terms of equity-settled share-based payments in respect of the award of options over common shares to the underlying offer letters and Board approved documents. In conjunction with our valuation experts, assessed the fair value of options granted by checking the accuracy of the inputs and management estimates to the option pricing models adopted for that purpose. Tested the accuracy of the share-based payments expense by reference to the fair value at grant date, the vesting period, and the estimates of options expected to vest. We also assessed the adequacy of the disclosures in Note 6, 22, and 27 to the financial statements and the remuneration report respectively. Information Other than the Financial Report and Auditorʼs Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Groupʼs annual report for the year ended 30 June 2024 but does not include the financial report and our auditorʼs report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of: a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001; and for such internal control as the directors determine is necessary to enable the preparation of: (i) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and 70 Annual Report 2024 Objective Corporation Limited and its Controlled Entities INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF OBJECTIVE CORPORATION LIMITED ABN 16 050 539 350 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms (ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditorʼs 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 auditorʼs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement 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 Groupʼs 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 directorsʼ 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 Groupʼs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorʼs 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 auditorʼs 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. 71 CEO’s Report Business Line Review Sustainability Financial Statements Independent Auditor’s Report INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF OBJECTIVE CORPORATION LIMITED ABN 16 050 539 350 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms 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 with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditorʼs 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 Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 24 to 26 of the directorsʼ report for the year ended 30 June 2024. In our opinion, the Remuneration Report of Objective Corporation Limited, for the year ended 30 June 2024, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Nathan Balban Pitcher Partners Partner Sydney 21 August 2024 72 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Shareholder Information Additional information required by the Australian Stock Exchange Limited Listing Rules and not disclosed elsewhere in this report is set out below: The shareholder information set out below was compiled from Objective Corporation Limited’s register of shareholders as at 10 September 2024. A. Twenty Largest Holders of Ordinary Shares Rank Name Units held % of listed units 1 TBW TRUSTEES LIMITED 62,000,000 65.14 2 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 7,862,844 8.26 3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 4,497,512 4.73 4 BNP PARIBAS NOMS PTY LTD 4,435,118 4.66 5 CITICORP NOMINEES PTY LIMITED 2,286,787 2.40 6 UBS NOMINEES PTY LTD 1,236,480 1.30 7 MIRRABOOKA INVESTMENTS LIMITED 853,225 0.90 8 ANACACIA PTY LTD 662,113 0.70 9 WEM SUPER PTY LTD 535,000 0.56 10 AMCIL LIMITED 375,000 0.39 11 MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED 351,185 0.37 12 WARBONT NOMINEES PTY LTD 299,493 0.32 13 MR CHARLES DAVID GORDON 218,405 0.23 14 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 207,676 0.22 15 MR DARC FREDERICK DENCKER-RASMUSSEN 200,000 0.21 16 MR BEN TREGONING (TREGONING FAMILY A/C) 191,250 0.20 17 MR ADRIAN RUDMAN 170,000 0.18 18 EST MRS JOAN CAMERON FISHER 164,250 0.17 19 CERTANE CT PTY LTD (HAYBOROUGH OPP FUND) 152,249 0.16 20 ARRAS PTY LTD 150,000 0.16 Total: Top 20 holders of issued capital 86,848,587 91.26 Total remaining holders balance 8,335,409 8.74 73 CEO’s Report Business Line Review Sustainability Financial Statements Shareholder Information B. Substantial Holders The names of Objective Corporation Limited’s substantial holders and the number of shares in which each has a relevant interest, are listed below: Units held Voting power % TBW TRUSTEES LIMITED 62,000,000 65.14 C. Distribution of Shareholdings A distribution schedule of the number of holders of shares is set out below: Range No. of holders No. of units % of issued shares 1 – 1,000 1,704 615,009 0.65 1,001 – 5,000 871 2,068,757 2.17 5,001 – 10,000 146 1,085,582 1.14 10,001 – 100,000 134 3,949,609 4.15 100,001 and over 25 87,465,039 91.89 Total 2,880 95,183,996 100.00 74 Annual Report 2024 Objective Corporation Limited and its Controlled Entities Corporate Directory REGISTERED OFFICE Level 30 177 Pacific Highway North Sydney NSW 2060 Australia Tel: +61 2 9955 2288 ASX CODE OCL ABN 16 050 539 350 DIRECTORS Tony Walls Nick Kingsbury Darc Rasmussen Stephen Bool COMPANY SECRETARY Ben Tregoning STOCK EXCHANGE LISTING The Company’s shares are listed on the ASX. ELECTRONIC ANNOUNCEMENTS Shareholders who wish to receive a copy of announcements made to the ASX are invited to provide their email address to the Company. This can be done by emailing us at enquiries@objective.com or writing to us at our registered office. WEBSITE www.objective.com.au 75 CEO’s Report Business Line Review Sustainability Financial Statements