One Annual Report 2023 | Quarterlytics

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FY2023 Annual Report · One

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Annual
Report.

2 0 2 3

UP
23%

Annual
Recurring
Revenue
up 23%

FY19
$202.5M

FY20
$221.9M

FY21
$257.5M

FY22
$320.7M

FY23
$392.9M

Annual Recurring Revenue

UP
16%

Profit
before
tax
up 16%

FY19
$76.4M

FY20
$82.5M

FY21
$97.8M

FY22
$112.3M

FY23
$129.8M

Profit before tax

119%

Net
Revenue
Retention
119%

FY19
114%

FY20
107%

FY21
112%

FY22
116%

FY23
119%

Net Revenue Retention

UP
19%

SaaS and
Continuing
Business
up 19%

FY19
$241.8M

FY20
$269.8M

FY21
$293.6M

FY22
$358.7M

FY23
$426.4M

Revenue - SaaS and Continuing Business

These graphs should be read in conjunction with the
Financial highlights table on p.13

Making life
simple for our
community.

Gurbindar Singh
CHIEF FINANCIAL OFFICER

Southern Downs Regional Council

Making life simple for our community16 products
strategically
focused over key
industries.

Built on a code
base that is set up
for future
innovation & is
highly scalable.

Integrated
GPS, Ai, Camera &
Machine Learning
functionality.

Two major
software releases
a year. We focus
on customer
evolution.

Best in class, global
support providing
customers with 24/7
assistance.

Highest level
security
accreditations in
the industry.

An all-inclusive
offering specifically
tailored for your
industry.

400+ modules
with over
10,000
capabilities.

Build an app faster
without having to
code.

One simple
intuitive UX
focused
workplace for
everything.

Simplicity, in the
hands of your
customers .

Explore hours of
training to help
you every day.

We take care of
the upgrade so
you can focus on
the future.

TechnologyOne Annual Report 2023What’s
inside.

Our history

At a glance

Financial highlights

Letter to shareholders

Our strategy

Global SaaS ERP solution

Our growth

Our operations

Our people

TechnologyOne Foundation

Financial statements

111

124

125

167

Directors’ report

Auditor’s independence declaration

Corporate governance statement

Voluntary tax transparency report

Financial statements

Directors’ declaration

168

Auditor’s report

174

175

Shareholder information

Corporate directory

Making life simple for our community
Our history

1987

Adrian Di Marco founded

TechnologyOne in a

demountable office at a

hide processing plant in an

industrial suburb of Brisbane.

Becoming one of the first tech

state ups in Australia.

Back then, there was no

venture capital or private

equity, so one of Adrian’s

previous customers, the

Mactaggart Family, provided

the funding. The idea was

to build a new generation of

software where the source

code did not need to be

customized for each customer,

which was then the common

practice.

The software could be

configured for each customer

and the configuration sat

outside the software.

Because all customers used

1991

1995

1998

TechnologyOne broke away

from the approach taken by

TechnologyOne software was

global ERP vendors like Oracle

voted #1 Software for Financial

and SAP of focusing on all

Management and Accounting

markets, and focused on six

by a survey of 3000 CFOs by

vertical markets: Education,

MIS magazine. TechnologyOne

Local Government, Government,

repeated this win three years

Health & Community Services,

in a row. TechnologyOne broke

Asset & Project Intensive and

away from the industry ‘reseller

Corporate & Financial Services.

model’ and adopted our unique

This allowed us to build deep

the same software, we could

TechnologyOne released its first

Power of One model, taking

functionality out of the box

then ship new releases every

product, called FinanceOne,

responsibility to build, market,

for these markets, to create

year, with new features and

using the Oracle relational

sell, implement and support its

a significant competitive

functionality.

database technology (RDBMS).

software.

advantage.

1988

1993

1996

1999

Adrian knew that using

TechnologyOne made the

With the rise of PCs,

TechnologyOne floated on the

technology to get a

decision to shift away from

TechnologyOne became

Australian Securities Exchange

competitive advantage would

Oracle’s RDBMS, to become

an early adopter of PCs for

(ASX) in 1999. TechnologyOne

be the number one factor in

database independent. That

enterprise systems, rebuilding

was one of the first IT companies

our success, so he named the

same year, TechnologyOne

its suite of products in a new

to become publicly listed and

company TechnologyOne.

pivoted from being Best

and emerging technology

one of the most successful

TechnologyOne was one of

the earliest developers in

the world to use relational

database technology.

of Breed to become one

called client/server. That

listings in 1999.

of the first ERP vendors.

same year, FinanceOne for

TechnologyOne’s enterprise

Windows was released.

vision became a key

differentiator, allowing it to

deliver a single, integrated

enterprise solution, built on a

single modern platform, with a

consistent look and feel.

TechnologyOne Annual Report 20232015

TechnologyOne makes

three acquisitions: ICON

Software, Digital Mapping

Solutions and Jeff

Roorda & Associates. The

acquisitions broadened

2012

With the emergence

the breadth and depth

of the cloud,

of TechnologyOne’s

TechnologyOne became

enterprise solutions,

an early adopter of

adding planning,

the cloud for enterprise

spatial and strategic

software, re-architecting

asset management

our ERP system.

functionality to our suite

2021

2022

TechnologyOne

partnered with the

University of Lincoln

to go live with our

state-of-the-art

student management

Delivering a multi-

of products for Local

TechnologyOne made

system. Making the

tenanted global ERP

Government and Higher

its first international

University our first UK

SaaS system, providing

Education markets. In

acquisition, Scientia, as

institution using the

2002

TechnologyOne

huge economies of scale

the same year, Adrian

part of our strategic

internationally trusted

enabling us to take full

Di Marco was listed

focus to deliver the

system and joining over

responsibility for our

on SmartCompany’s

deepest functionality

100 higher education

acquired Proclaim

customers – building,

top 10 most influential

for higher education

customers utilising

Pty Ltd, for its

implementing, and

people in the Australian

becoming the only ERP

TechnologyOne products

Property & Rating

running our software for

IT industry, inducted into

provider in the world

in the UK. Adrian Di

product extending

them. Our customers can

the Pearcey Hall of Fame,

to offer this solution to

Marco commenced his

TechnologyOne’s

easily and seamlessly

and named as 2015’s

the higher education

retirement. Handing the

Local Government

move from on premise to

top 10 CEOs by AFR Boss

market, as part of a full

reigns of Non-Executive

enterprise solution.

the cloud.

magazine.

enterprise suite.

Chair to Pat O’Sullivan.

2003

2014

2017

With the emergence

TechnologyOne SaaS

TechnologyOne

of the internet,

was released. With the

launched the

TechnologyOne became

emergence of mobile

TechnologyOne

an early adopter,

devices, TechnologyOne

Foundation, committing

rebuilding our entire ERP

rebuilt our ERP systems

to raise 500,000

system for the internet.

to provide any device,

children and their

TechnologyOne Ci

anywhere, and any

families out of poverty.

(Connected Intelligence)

time access. 100% of

TechnologyOne is also

was released.

TechnologyOne ERP

committed to the 1%

2006

TechnologyOne

functionality is available

Pledge – committing

across all devices

1% of profit, staff time

including mobile phones.

and products to its

The new product Ci

Foundation. Adrian

released preconfigured

Anywhere was released

Di Marco steps down

solutions for each of

in 2014. In the same

as CEO but retains

our key vertical markets

year, TechnologyOne

Executive Chair position

dramatically reducing

hit $1 billion market

and appoints Chief

the time, cost, and

capitalisation and

Executive Officer,

risks associated with

entered the ASX 200

Edward Chung.

implementing its ERP

Index.

software.

2023

TechnologyOne hosted a series of

Showcase events across Australia,

New Zealand, and the UK which had

1,633 delegates in attendance. In

FY23, TechnologyOne also achieved

a milestone and became one

of Australia’s top 100 ASX-listed

companies and launched their game-

changing SaaS Plus strategy which

removes the need for traditional,

long, complex, risky, and expensive

implementations.

Making life simple for our communityAt a glance

TechnologyOne Annual Report 202310
12

Our finances

Financial highlights

Making life simple for our communityUP 23%
TOTAL
ARR
$392.9M

UP 15%
Dividend of
19.52cps

$112.0M

R&D investment
up 21%
(25% of revenue)

UP 19%

$426.4M revenue from
SaaS & continuing
business

Our vision. As the only company offering a true
global Software as a Service (SaaS) ERP solution
across the entire enterprise, we are making life
simple for our community.

Our Difference

We are the only vendor that
develops, sells, implements, supports,
and runs a fully integrated suite of
enterprise software solutions. Our
global SaaS ERP solution spans
across the entire enterprise and
allows our customers to embrace the
digital revolution and an exciting new
world of possibilities in a cloud-first,
mobile-first world.

Our Reach

TechnologyOne has a global
presence throughout Australia,
New Zealand, Asia, and the United
Kingdom.

Our Culture

At TechnologyOne, we believe in a
culture of innovation, creativity, and
collaboration, and have created an
environment that allows our people
to thrive. This culture is built into the
fabric of our business, driving high

performance, and underpinning our
success. Our global team is made
up of more than 1,200 passionate
individuals. We believe in investing
in our people, and we do this with a
wide range of initiatives such as
O Week, One Talks, MARVEL awards,
and leadership courses.

Compelling Customer
Experience

We continue to recognize that our
customers are our true north for the
decisions we make, the people we
employ and the processes we create.
This is why we continue to invest in
our Compelling Customer Experience
(CCE) program, which provides our
people with ongoing development
and support in delivering outstanding
customer experiences. The program
supports and encourages our team
members so that they can deliver
outstanding customer service every
day. Providing a compelling customer

experience is fundamental to the way
TechnologyOne does business and
positions us well to attract customers
away from our competitors.

Our Market-Leading Solutions
and Products

As the leading supplier of enterprise
software solutions for more than 1,200
large-scale companies, and with
more than 36 years’ success in the
business, we have developed a deep
understanding of our key markets.
We offer our customers a range
of industry-leading preconfigured
enterprise solutions. Our solutions
streamline implementations, reducing
time, cost, and risk for customers. We
also offer a comprehensive suite of
enterprise software products.

TechnologyOne Annual Report 2023UP
28%

$306.0M
Net assets

YEARS
Continued record
profit

30%

Profit Before
Tax margin

UP 16%

$129.9M
Profit
Before Tax

UP
54%

UK profit $3.7M

UP
19%

Total revenue
$441.4m

$500MA

R
R

on track to surpass by 2025

UP 13%

$198.3M Cash and
cash equivalents

Our Markets

Our Products

Our Research & Development

•

Local Government

Education

Government

Health and Community Services

Asset and Project Intensive

Corporates and Financial
Services

Our Preconfigured Solutions

•

OneCouncil

OneEducation

OneGovernment

OneCare

OneAsset

OneCorporate

•

Corporate Performance
Management

Enterprise Content Management

Human Resources & Payroll

Spatial

Supply Chain Management

Strategic Asset Management

Enterprise Cash Receipting

We continue to focus our research
and development (R&D) efforts on
new and emerging technologies,
including cloud-based technologies,
artificial intelligence, machine
learning, and other innovations. Our
Australian-owned commercial R&D
centre is the largest of its kind, with
offshore facilities in Indonesia and
Vietnam.

Enterprise Asset Management

New Ideas, New Concepts

Financials

Property & Rating

Student Management

Business Analytics

Enterprise Budgeting

Performance Planning

Timetabling & Scheduling

DXP Local Government

We are committed to a continuous
cycle of redeveloping our software
platform from the ground up. This
process leaves no line of code
untouched and ensures that we are
free to embrace new ideas, concepts,
and technologies – rather than
needing to retain legacy systems.
Over the past 35+ years we have
completely redeveloped our software
platform four times.

Making life simple for our communityFinancial
highlights

n. noun. /sæs Plus/

Delivering an end to end solution built with the customer in
mind so they can focus on the communities they serve
(the abbreviation for ‘solution as a service’)

With SaaS Plus, TechnologyOne
takes full responsibility for the
solution experience - reducing
risk and saving time and money
for our customers. One plan, one
price, one point of call.

TechnologyOne Annual Report 2023 2023
$’000s

2022
$’000s

Growth on
last year

15-year
compound
growth

2021
$’000s

2020
$’000s

2019
$’000s
Comparable

2018**
$’000s

2017
$’000s

2016
$’000s

2015
$’000s

2014
$’000s

426,379

358,668

19%

293,553

269,774

241,790

221,046

231,151

192,657

175,279

140,024

Revenue -
SaaS and
Continuing
Business

Total revenue

441,363

369,391

19%

10%

312,012

299,018

286,164

254,491

273,253

249,018

218,724

195,124

Annual
Recurring
revenue (ARR)1

R&D
Investment

Net Profit
Before Tax

Net Profit
After Tax

Earnings Per
Share (Cents)

Total
Dividends
(cents per
share)

Dividend
Payout ratio

Cash, Cash
equivalents
and
short-term
Investments

392,884

320,694

23%

257,495

221,908

202,480

173,912

153,896

126,996

108,853

111,995

92,197

21%

12%

77,005

68,062

60,124

54,042

49,856

46,009

41,038

37,873

129,854

112,320

16%

12%

97,843

82,470

76,389

50,807

58,019

53,240

46,494

40,235

102,876

88,843

16%

13%

72,691

62,945

58,459

47,681

44,494

41,344

35,785

30,967

31.71

27.51

15%

12%

22.64

19.75

18.43

15.10

14.18

13.26

11.57

10.06

19.52

17.02

15%

11%

13.91

12.88

11.93

11.02

10.20

9.45

8.78

8.16

62%

65%

73%

72%

76%

81%

223,265

175,865

27%

16%

144,210

125,244

105,046

104,322

93,383

82,588

75,536

80,209

Net Assets

306,006

239,097

28%

13%

190,234

142,168

106,857

103,480

157,520

138,494

117,940

104,499

The table above shows previously reported results to FY17. Results for those years have not been restated for AASB15.

*Before capitalisation.

**2018 Comparable applies AASB15. It also assumes non-IFRS pro forma capitalisation of R&D costs (50%) for the

FY18 year and is unaudited. As a SaaS company, R&D costs are capitalised from FY19 onwards, which is the common

practice of our SaaS peers. We measure our performance using the comparable method because it is a better

reflection of the performance of our business, setting a higher bar for the prior comparable period (FY18) than the

statutory reporting. It allows for a ‘like for like’ comparison of the performance of the business, assuming R&D costs

(50%) were capitalised in FY18. This is the basis used for all comparable reporting throughout this document.

1ARR is not an IFRS measure and is unaudited, it represents future contracted annual revenue at year end.

Making life simple for our communityLetter to
shareholders

TechnologyOne Annual Report 202318
23

Results summary

Afterword

Oliver Pring
G E N E R A L M A N A G E R
C O U N C I L S U S T A I N A B I L I T Y

Scenic Rim Regional Council

Making life simple for our communityOn behalf of
TechnologyOne
Limited

we are pleased to announce our
fourteenth consecutive year of
record profit, record revenues, and
record SaaS fees. Our Global SaaS
ERP solution is making life simple
for our community.

Continuing strong performance

TechnologyOne has consistently delivered strong
results since listing on the ASX in 1999. Our ability to
deliver these results for 20+ years is due to our clear
vision, strategy, culture, and our ongoing investment
in R&D, which was validated in March as we entered
the ASX 100 index.

TechnologyOne Annual Report 202317

Making life simple for our communityHighlights
for the
year

Profit before tax, up 16% – Beating guidance set in
May 2023 of 10%-15% profit growth.

Total Annual Recurring Revenue (ARR) up 23% –
Driven by the significant value proposition of our
global SaaS ERP solution.

Net Revenue Retention (NRR) of 119%, up from 116%
pcp – Existing customers continue to expand their
use of our global SaaS ERP solution to streamline
their operations.

UK ARR up 52% – Our long-term investment in the UK
continues to build momentum.

Upgrade to medium-term guidance: Now on track to
surpass $500 million ARR by FY25 – One year earlier
than planned.

Investing in the future – With strong results and a
strong sales pipeline, this year we made additional
investments to enable us to continue to double
in size every five years beyond $500 million ARR.
These include additional investments in the UK, new
products and modules, including DXP, AppBuilder,
and SaaS+. Additionally, we completed acquisition
due diligence on a potentially transformational
combination opportunity.

We became the world’s first SaaS+ ERP company
– We established our visionary SaaS+ offering by
combining our mission-critical global SaaS ERP
solution and implementation in one single fee,
removing the need for traditional, complex, long, risky
and expensive consulting implementations to provide
faster go-lives and therefore unlocking value for our
customers more quickly.

Strong balance sheet and Strong cashflow
generation at 102% of NPAT – We returned cashflow
generation to NPAT ratio of approximately 100%, one
year earlier than planned. With significant cash and
investment holdings of $223.3 million and no debt,
our balance sheet retains flexibility and strength for
inorganic growth in the future.

These points are discussed later in more detail.

Results
summary

Key results were as follows:

•

Profit Before Tax of $129.9m, up 16%, beating
guidance of 10%-15% growth

Profit After Tax of $102.9m, up 16%, beating
guidance of 10%-15% growth

Total Annual Recurring Revenue (ARR)1 of
$392.9m, up 23%

On track to surpass $500m ARR by FY25

Net Revenue Retention (NRR) of 119%.
Above our long-term target of 115%

Total Revenue2 of $441.4m, up 19%

Revenue from our SaaS and Recurring
Business of $390.7m, up 22%

Expenses of $311.5m, up 21%3

Cash Flow Generation4 of $104.6m, up 36%

Cash and Investments of $223.3m, up 27%

Total Dividend of 19.52 cps, including a
special dividend of 3.0 cps, up 15%

R&D investment of $112.0m before
capitalisation, up 21%, which is 25% of
revenue

1ARR represents future contracted annual revenue at year end.
This is a non-IFRS financial measure and is unaudited.

2Includes other income of $12.0m, driven by the contingent
consideration reversal for Scientia of $7.4m

3Includes $5.9m for the derecognition of certain Scientia
intangible assets. Also impacted by acquisition due diligence
expenses and investments brought forward.

4Cash Flow Generation is cash flow from operating activities less
capitalised development costs, capitalised commission costs
and lease payments. This is a non-IFRS financial measure and is
unaudited. Expected to approximate NPAT.

TechnologyOne Annual Report 2023UP
16%

Net profit after tax

FY13
$26.9M

FY14
$30.9M

FY15
$35.8M

FY16
$41.3M

FY17
$44.5M

FY18
$47.7M

FY19
$58.5M

FY20
$62.9M

FY21
$72.7M

FY22
$88.8M

FY23
$102.9M

Net Profit After Tax

with less than 200 staff, knows they
will get the same enterprise grade,
built-for-Government configuration,
and industry-leading cyber security
standards as our largest Government
customers.

We have successfully completed
our transition from an on-premise
legacy licence business to a SaaS
business. Our plan to reduce on-
premise legacy licence fees from
a high of circa $75 million to zero
over five years is complete. We
have aggressively grown our SaaS
recurring revenue business to replace
that revenue, delivering increasing
earnings every year.

This transition was extremely complex
as we re-engineered all parts of our
business, including our products, our
structure, our policies, processes, and
disciplines. No other ERP company
in the world has successfully made
this transition without negatively
impacting either its customers or its
profit growth.

TechnologyOne made the transition
to our SaaS solution for our on-
premise customers simple and
seamless. Customers can move
to SaaS in weeks, not years, in
stark contrast to those using our
competitors’ products.

From their first step to SaaS, our
customers can easily move to our
next generation SaaS ERP, CiA, and
take advantage of new technologies,
such as Artificial Intelligence and our
new Digital Experience Platform (DXP).

Total ARR grows 23%

Adoption of the TechnologyOne
global SaaS ERP solution exceeded
our expectations, with customer
adoption driving Total ARR to $392.9
million, up 23%.

TechnologyOne continues to lead in
the Local Government sector, where
we closed over 25 major deals in
FY23 totalling more than $113 million
in contract value. Consequently,
more than 300 council customers
now benefit from our high-quality
products in APAC. We continue to win
clients from our larger competitors,
including the City of Parramatta’s
digital transformation project, one
of several excellent wins from Infor,
and another returning customer from
Oracle. These Local Government
customers are just a few examples of
councils choosing our market-leading
ERP, CiA, with the digital customer at
its centre.

In the Government sector, we
signed five major deals with a total
contract value of more than $23
million. TechnologyOne successfully
completed the transition of our
existing 230+ Government customers
to SaaS. The new customers we
signed validated our SaaS-for-
Government vision, with the most
notable being the Department of
Veteran’s Affairs (DVA), which was
awarded to TechnologyOne at the
conclusion of a competitive tender
process against SAP. DVA, a large
agency, chose TechnologyOne for the
first stage of its digital transformation
based on our proven ability to deliver
within the Federal Government.
Equally, the Commonwealth’s
National Anti-Corruption Commission,

Revenue Retention (NRR) of
119%, up from 116% pcp

In FY23, we delivered Net Revenue
Retention of 119%, which is industry-
leading in the ERP market and above
our long-term target of 115%. At 115%
per annum, we will continue to double
in size every five years.

This clearly shows our products and
solutions are resonating with the
market. Customers are continuing
to take up more products and
modules from us as they embrace our
enterprise vision and the significant
efficiencies and productivity lift that
come with it.

Our focus is to land a customer with
products such as Financials, Property
and Rating, or Student Management
and then expand with other products
and modules over time. As the
only true SaaS ERP vendor in the
market, our SaaS customers have all
products and modules available at
all times and are always on the latest
software release. This open licence
approach removes the friction from
TechnologyOne selling and from our
customers taking up new products
and modules to streamline their
business.

We continue to invest in our products
and modules to provide even deeper
mission-critical functionality for the
markets we serve. In doing so, we
increase the available whitespace
and runway for our team to sell
additional value to our existing
customers.

Our SaaS customers continue to take
up products and modules at a faster
rate than we had seen for our on-
premise customers. The average ARR

Making life simple for our community
from our customers has grown from
$100,000 in FY12 to almost $400,000
in FY23.

UK ARR of $26.5 million, up
52%

We have seen our UK business
continue to grow, with ARR up 52%
to $26.5 million. We delivered a
profit of $3.7 million, up from a profit
of $2.4 million last year, and we
see significant opportunities in the
coming years in this market, which
exceeds the size of the APAC market
considerably.

The regionalisation of our
OneEducation solution is now
complete for our Student
Management and Human Resources
and Payroll (HRP) products, and
we signed two new Student
Management deals this year in the
UK. Our ERP offering and the breadth
and depth of functionality that we
bring to the Local Government and
Higher Education markets are unique
in the UK, and our pipeline is growing
strongly. We continue to invest in
products, sales, marketing, and all
other functionality in the UK to further
accelerate our growth.

Upgrade to medium-term
guidance, on track to surpass
$500 million ARR by FY25

The quality of the revenue from our
latest generation global SaaS ERP
business is exceptionally high, given
its recurring contractual nature,
combined with our industry-leading
low churn rate of ~1%.

Our ARR stands at 90% of Total
Revenue , which means most of our
revenue is locked in at the start of the
financial year. This positions us well to
achieve strong continuing growth in
the new year.

Today, our Total ARR is $392.2
million, up 23%. We are upgrading
our medium-term target to surpass
$500 million ARR by FY25 (previously,
“we will surpass $500 million ARR by
FY26”).

Investing in the future

TechnologyOne invested $112 million
in R&D this year, up 21%. Our R&D
program continues to be at the
leading edge of our industry as we
embrace new technologies, new

concepts, and new paradigms.

Our R&D team is focused on
extending the functionality and
capabilities of our global SaaS ERP
solution, CiA, which increases the
whitespace in the verticals we serve.

We continue to invest in new,
exciting ideas and innovations,
including SaaS+, AppBuilder and
Digital Experience Platform (DXP)
for Local Government and Higher
Education. Our 16th product, DXP LG,
was released for general adoption
and extends our ERP from traditional
back-office users to residents.

We became the world’s first
SaaS+ ERP company

SaaS+ will be a game changer
in the ERP industry. It is the next
logical evolution of SaaS where
TechnologyOne delivers the
entire outcome faster, with little
risk and in one single annual
fee to our customers. SaaS+ will
deliver faster time to value as we
continue to dramatically drive down
implementation timeframes, removing
the need for traditional, long-drawn-
out, risky implementations. Through
the “Power of One”, TechnologyOne
is the only SaaS ERP provider able to
deliver on this compelling proposition
as we own all parts of the value chain
with deep mission-critical products,
industry-specific IP built over 36
years and our highly skilled in-house
consulting team.

During FY23 TechnologyOne launched
our new SaaS+ offering, which was
embraced by 34 customers across
all our industry verticals, surpassing
all our initial expectations and
demonstrating a very positive outlook
for our future approach to sales and
delivery. Queensland Parliamentary
Services was the first government
example, recognising how crucial time
to value is for government agencies
in times of economic and budget
uncertainty. Other notable examples
include the London Business School
of Economics in the UK and our first
full OneCouncil solution, inclusive of
Property & Rating, at Whitsunday
Regional Council in Australia.

Our SaaS+ proposition is resonating
with the market. Our shift from
traditional new project consulting
revenue to SaaS+ revenue will mirror

our successful transition from legacy
license fees to SaaS revenue, which
is now complete. This strategic move
enhances our focus on high-quality,
recurring revenue.

We are excited about the
opportunities these investments will
bring to our APAC and UK customers.
Importantly, SaaS+ has become the
go-to-market sales approach in the
UK.

These investments in R&D and
SaaS+, to build our future platforms
for growth, enable our ability to
continue to double in size every five
years. We will manage this significant
investment within our total cost base,
continuing to balance strong profit
growth with investment for future
growth beyond $500 million ARR.

Profit Before Tax margin to
return to growth in FY24

As we transitioned to SaaS and
continue to build deep pipelines, our
profit and loss has become more
predictable. Early in our second half,
we could see with confidence that
we were going to have a strong
full year. We have delivered above
guidance profit before tax growth of
16%, strong ARR growth of 23%, NRR
of 119% (above our long-term target
of 115%) and cashflow generation to
NPAT of 102% for the year, one year
earlier than planned.

Combined with a strong pipeline,
this allowed us to make additional
investments in our ambitious R&D
program earlier than planned. These
long-term investments, including DXP,
AppBuilder, additional modules, and
SaaS+, will enable us to grow beyond
$500 million ARR and continue to
double in size every five years. We
also invested in the UK and in scaling
our service centre in Malaysia.

TechnologyOne Annual Report 2023
FY13
19%

FY14
21%

FY15
21%

FY16
21%

FY17
21%

FY18
22%

FY19
27%

FY20
29%

FY21
31%

FY22
30%

FY231
30%

due diligence, we did not proceed
as the potential acquisition did not
meet our criteria and the prudent
decision was made not to proceed.
TechnologyOne remains in a strong
position to explore other appropriate
M&A opportunities in the near and
medium term given the company’s
strong balance sheet.

These planned additional investments
resulted in a flat underlying profit
before tax margin of 30%. We expect
margin growth to return in FY24, and
we see Group margins continuing to
improve to 35% in the coming years,
driven by the significant economies of
scale from our single instance multi-
tenanted global SaaS ERP solution.

Investment in people
and culture

Our people solve incredibly
complex business problems for our
customers and have delivered our
massively broad and deep global
SaaS ERP solution. We compete
and win against the world’s largest
multinational software companies,
which have R&D teams with tens of
thousands of staff.

We have set an ambitious target
Employee Net Promoter Score (eNPS)
of +50 by FY26. Our eNPS score
increased to +34, driven by new
and exciting people programs and
initiatives delivered in FY23.

Profit Before Tax Margin

year, we refined and simplified
our core beliefs and compelling
customer experience philosophies
and relaunched them to our team
through our Culture Book, a collection
of stories that explain to new starters
and remind long-timers what makes
TechnologyOne special and how we
make the impossible, possible. This
completes the 24-month refresh of
the TechOne Way, the key artefact
that describes the DNA of our
business to our staff.

During the year, we promoted 130
team members across all areas of our
business. We continued our focus on
diversity and strategies to increase
the number of women across the
organisation. Women now hold more
than 42% of senior roles against an
industry average of 25%. Our overall
representation of women across
all roles at TechnologyOne has
increased to 38%.

We have also launched Australia’s
best Employee Share Plan, which
provides one free share for every two
shares purchased by our employees.
In the year, 44% of our team
members elected to become owners
of TechnologyOne to share in the
growth of our great company.

To continue to double in size every
five years, we launched our ongoing
investment in our leaders through our
Leadership Summit. This initiative is
designed to grow our leaders, teach
them the TechOne Way and equip
them to lead our teams to make the
impossible possible. The first cohort
graduated in FY23 and cohort two
commenced this year.

Strong balance sheet and
Strong cashflow generation
at 102% of NPAT

TechnologyOne continues to have a
strong balance sheet with net assets
of $306.0 million, up 28% and cash
and investments of $223.3 million, up
27%. Cash Flow Generation (CFG) was
once again strong at $104.6 million
for the full year, versus a Net Profit
After Tax of $102.9 million, a CFG to
NPAT ratio >100%, which is one year
earlier than planned. TechnologyOne
continues its long history of strong
CFG, which we expect will continue
to approximate Net Profit After Tax in
FY24 and beyond.

Dividend

Considering the company’s strong
results, our confidence in the future,
and the significant capacity in our
balance sheet to invest in growth
and opportunities that may arise, we
have announced a Special Dividend
of 3.0 cents per share in addition to
our final FY23 dividend of 11.90 cents
per share.

For the full year, our dividend has
increased to 19.52 cents per share
(including the Special Dividend), up
15% on the prior year and in line with
our Net Profit After Tax growth of 16%.

Executive remuneration

TechnologyOne remains focused
on delivering strong growth, and
our current remuneration structure
positions us well to continue to
achieve this – both in the short
and long term - but also to ensure
alignment across our Executive KMP.

1Excluding one-off Scientia acquisition accounting impact and the acquisition due diligence costs incurred in FY23

Making life simple for our community
Governance

Given that TechnologyOne is such a significant R&D
and innovation-led business, coupled with our long track
record of profitable growth, we continue our cautious and
measured approach to the renewal of our Board.

We would like to recognise Ron McLean, who, after 31
years of service, firstly as an executive and subsequently
a non-executive director, retired from the company on 26
February 2023. Ron was instrumental in developing the
sales team and disciplines and TechnologyOne culture
over his time and left the business in excellent shape for
future growth. We wish him well in his future endeavours.

Please refer to our TechnologyOne website at: https://
www.technologyonecorp.com/company/investors/
corporate-governance for our full Sustainability Report
and Corporate Governance Statement.

We continued to execute our strategy, delivering
strong results again in FY23. When many businesses
have struggled to deliver in uncertain economic and
geopolitical times, TechnologyOne has delivered
exceptional growth – Total ARR growth of 23%, Record Net
Profit After Tax growth of 16%, and upgraded our medium-
term guidance to surpass $500 million ARR by FY25.

Our 3-year rolling TSR is 97%, and annual TSR is 48%. There
is a clear alignment between the performance of the
business and executive remuneration.

Refer to the remuneration report for more detail.

Environment, Social, Governance (ESG)

Environment

TechnologyOne is committed to its ESG obligations
beyond just regulatory requirements. We became
Carbon Neutral globally, and this year is our second
year benchmarking and reporting under the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).

While the TechnologyOne operations do not have a
material impact on the environment, we acknowledge
that it is the changing attitude of many that will have a
material impact on reducing climate change.

Social - TechnologyOne Foundation

The TechnologyOne Foundation defines who we are
as a company and is an important driver of our culture
and values.

We are committed to making a difference to
underprivileged, disadvantaged, and at-risk youths by
empowering them to transform their lives and create their
own pathways of success. We believe that it is through
youth that we can have the greatest impact on the future.
We have an ambitious goal of lifting 500,000 children and
their families out of poverty by FY31, which we are on track
to achieve.

An important part of the TechnologyOne Foundation
is supporting great Australians doing great work, both
locally and internationally, which includes the Fred Hollows
Foundation, School of St Jude, Opportunity International,
Solar Buddy and St James College.

The Foundation will continue to grow with TechnologyOne
through our commitment to the 1% pledge – which
includes 1% profit, 1% product and 1% time. This represents
a commitment of more than $2 million each year. The
TechnologyOne Foundation will continue to shape the DNA
of our company and staff.

Please refer to the TechnologyOne website for our
full Sustainability Report and Corporate Governance
Statement.

TechnologyOne Annual Report 2023
Outlook for Full Year 2024

Afterword

The economic outlook and geopolitical issues continue to
create uncertainty, and TechnologyOne has seen difficult
and challenging economic environments many times in the
past 36 years.

We have continued to grow strongly during these times,
and we will continue to do so. As we have seen over the
last few years, the markets we serve continue to remain
resilient, with our mission-critical products providing
our customers the opportunity to reduce their costs,
streamline their business and improve their efficiencies in
such challenging economic times. Our customers report
savings of 30%+ by utilising our Global SaaS ERP Solution.

The TechnologyOne global SaaS ERP solution is driving
our continuing success. As a result, TechnologyOne’s
sales pipeline of opportunities for FY24 is strong, and this
positions us for continuing strong ARR and profit growth in
FY24.

We are on track to deliver $500m ARR by FY25, one year
earlier than previously communicated.

The company will provide further guidance at both the
Annual General Meeting and the FY24 first half results.

*For more details on these event dates, please see our
website.

To continue to succeed, we must continue to innovate
and focus on building beautiful software that is incredibly
simple and easy for our customers to use. Our software
must work on any device, anywhere, at any time if we are
to enable our customers to embrace the exciting future
that is possible within the digital revolution.

Also, we must continue to earn the right to be the
enterprise software partner for our customers. At every
touchpoint we have with our customers, we must strive
to make things simpler for them and give them a great
experience.

We set an ambitious goal to make life simple for our
community, and we are making this a reality.

This would not be possible without the talented and
committed people who make up the TechnologyOne
team. We would both like to thank every team member
across the globe for their continued efforts and passion
for delivering world-leading software solutions for our
customers and users. FY23 has been another amazing
year for the company, and that is thanks to all of you.

We would also like to thank you, our shareholders, for
your continuing support.

Pat O’Sullivan
Chair

Edward Chung
Chief Executive Officer

Making life simple for our communityOur strategy

TechnologyOne Annual Report 202326
28

Mission & purpose

Our core beliefs

Making life simple for our communityOur purpose
and mission

TechnologyOne Annual Report 2023Our passion is to
solve the complex.

Our mission is to better our
community, from its citizens to
students, by leveraging our team’s
innovation, drive, and determination.

Our vision is to build and deliver
truly great products and services,
making life simple for our community.

Our core beliefs allow us to deliver on
this vision.

For close to four decades,
TechnologyOne’s clear vision,
purpose, mission, beliefs, people,
and supporting initiatives have
underpinned our growth and success.

At TechnologyOne, we know
that our customers’ experiences
define our success. We believe in
leadership, not management. We
know that our survival depends on
our ability to set ambitious goals,
and to lead and inspire our people

to achieve great things. As a large,
successful company, we also believe
it is important to give back to the
community. To pay our success
forward, this is why we established
the TechnologyOne Foundation.

Our core beliefs, dedication to
customer experience, leadership
model and charitable ethos helped
form the TechnologyOne Way more
than 36 years ago and continues to
define the way we operate.

Making life simple for our communityOur core
beliefs

The TechnologyOne Way sets out our mission
statement, along with our six core beliefs. Together
these guide our business strategy, product
development and our brand.

By clearly defining why we exist and what we believe in, every team member can understand
what makes TechnologyOne work – and feel empowered to contribute to its success.

The Power
of one.

Evolution not
revolution.

We dream
big and
deliver.

The Power of one

Evolution not revolution

We dream big and deliver

It is what we are known for. We do
not accept the normal way of doing
things. We have a singular source of
vision, development, implementation,
sales, and support, and take full
responsibility for the complete
outcome of the solution experience
- not just the software. SaaS+ is a
true symbiotic partnership with our
customers – it benefits us both.

It’s rarely the big bang that does
it – rather, it’s incremental but
constant improvement that changes
the world. Our enterprise solution
adapts and evolves as we embrace
new technologies, concepts, and
innovation – and we share that with
our customers – never leaving them
behind.

We tackle the complex and face the
difficult. With one eye on today’s
challenge and the other on the
future, we deliver solutions that
stand the test of time. We are the
masters of our own destiny and don’t
follow the established path. We think
differently, we work differently, and
we embrace it.

TechnologyOne Annual Report 2023Making life simple
for our community

At TechnologyOne, our mission is to
make life simple for our community,
from its citizens to students, by
leveraging our team’s innovation,
drive and determination. Our
passion is to solve the complex,
with simplicity as our compass and
our customers as our true north
driving our decisions and helping
us to build software they can’t live
without.

Whether streamlining
administrative processes for
local governments, enhancing
educational tools for universities,
or optimising business operations,
our solutions aim to be a catalyst
for positive change. Through the
relentless pursuit of simplicity, we
contribute to building a connected
and efficient community where our
technology becomes an enabler,

fostering progress and making
daily tasks simpler for everyone.

We are committed to continuously
deliver outcomes that enrich the
very fabric of the communities we
live, work and study in.

One
experience
for our
customers.

Market
focus &
commitment.

Tech
is the
answer.

One experience for our
customers

With one globally integrated line of
code, and a deep understanding
of our chosen markets we deliver
mission critical software, and a single
streamlined experience, reducing
cost, time, and risk

Market focus and commitment

Tech is the answer

We are not all things to all people.
We have deep industry knowledge
of our chosen sectors, but we also
have local access & presence. We
are members of our communities -
ratepayers, students, patients - it’s
why we feel such a deep connection

Tech is the way we think. Tech means
we can solve the complex. Tech
changes the way our customers work.
Tech evolves rapidly, inviting new
possibilities daily. Tech IS the answer.

Making life simple for our communityGlobal SaaS
ERP solution

TechnologyOne Annual Report 202331

Making life simple for our communityTechnologyOne is at the
very forefront of delivering
the benefits of mass
production to the enterprise
software industry. As
we have seen in other
industries, the economies
of scale of mass production
will change the face of the
software industry.

TechnologyOne’s global SaaS ERP
solution delivers the full functionality
of an ERP on any device, without
compromise. Our SaaS platform runs
one global code line, allowing us to
continuously deliver new innovations
to our customers, who benefit from
the scale of our investment as an
enterprise vendor.

One single global code line, run on
thousands of servers, at massive scale,
for all customers. Because of this, we
gain enormous economies of scale,
allowing us to continuously deliver
new innovations to customers. Every
customer benefits from each dollar
we invest, amounting to $112 million
investment in R&D in FY23.

Our solution leads the market because
we own, build, run, implement, and
support our own software. We take
complete responsibility for providing
the processing power, software and

services, including backup, recovery,
upgrade and support services for our
SaaS customers. Other ERP providers
fail to deliver the same economies of
scale and cost efficiencies because
they use cloud hosting but handcraft
each customer’s environment
individually. Our solution delivers the
deepest functionality for the markets
we serve, comprising 16 products and
up to 30 modules per product.

Our global SaaS ERP surpasses best-
of-breed products because we offer
one partner, one integrated solution,
one look and feel, one technology
platform and integration out of the
box. It’s a single instance of software
delivered globally, with a mass
production line of servers running
thousands of customers’ organisations
that creates cost efficiencies that
hosting providers cannot come close
to, and a level of service, security,
reliability, scalability, and future

TechnologyOne Annual Report 2023We are now working on the next
generation of our SaaS solution,
2024A. The pace at which we are
innovating is accelerating, and we
are seeing many opportunities to
continue to improve the features,
speed, security, availability, and
scalability of our SaaS solution for our
customers.

proofing that would not be otherwise
possible.

TechnologyOne makes a substantial
investment each year in ongoing
R&D, to continue to improve our
software and to capitalise on new
technologies, concepts, and ideas.
Our global SaaS ERP solution
provides a compelling value
proposition to our customers, giving
them what is essentially a very simple,
cost effective and highly scalable
model of computing.

Our customers are always on the
latest technology, with access
to two releases of software per
year that delivers new features,
functionality and concepts, as well
as access to the TechnologyOne
University for ‘just-in-time’ training.
This is all provided standard, and
we guarantee it will be future proof.
Our current release, 2023B, delivers

simplicity without limits, helping
customers streamline the way they
do business with CiA.

For existing customers, the migration
from on-premise to SaaS is seamless,
with no loss of functionality or
complicated re-implementations
required. The accelerated transition
allows them to immediately save up
to 30+% on their total cost, so they
can focus on their business, not on
technology. With our configuration-
driven software design, all our
customers’ unique configuration
information is stored in their own
dedicated and secure database. This
is also the case for our customers’
transactional data, allowing us to
deliver personalised service at scale.

Making life simple for our communityRealising our vision as a SaaS-
first company

Any device, anywhere,
at any time

Over ten years ago, we started our
journey to SaaS, by committing to
building a software solution that
would operate anywhere, any time,
on any device. We set an aspirational
goal to develop the next generation
of ERP software, to transform our
customers through a digital platform.
Today, that solution is CiA, delivered
via SaaS.

Over the last six years, our customers
have validated this strategy with
the overwhelming adoption of SaaS.
Transitioning to SaaS has allowed
them to become more agile and
more importantly, gives them the
ability to focus on their customers
and not on their technology.

We now know that SaaS is the future,
and the only way to provide our
customers with the experience they
need to succeed.

That’s why we’ve transitioned the
majority of our on-premise customers
to our SaaS platform, providing them
with a digital platform for evolution.

We have committed to moving all
remaining on-premise customers to
SaaS by 2024 and will work closely
with our on-premise customers on
their pathway to SaaS to ensure no
customer is left behind.

This shift will not only allow us to
realise our vision as a full SaaS
company but will enable us to better
focus our resources on developing
and delivering our products, new
enhancements, and innovations on a
single platform.

We now have over 1000
large-scale enterprise
organisations with millions
of users, leveraging our
fourth generation SaaS
ERP, CiA, for mission critical
activities for themselves
and their customers. This
makes TechnologyOne
the largest single instance
SaaS ERP offering in
Australia.

Our award-winning CiA platform
delivers a single solution for our key
verticals, that enables possibilities
now and in the future. CiA is the
path forward for our customers and
provides a springboard for future
innovations.

Through CiA, customers gain access
to the full functionality of our
enterprise software on any device,
anywhere, at any time.

Organisations can embrace iPad,
iPhone and Android devices as part
of their enterprise solution and our
adaptive screen design guarantees
a great user experience regardless of
the device. Because the experience
is tied to the user, not the device,
an employee can move seamlessly
from one device to another without
interrupting their work. The hybrid
working model validates CiA’s any
device, anywhere, anytime capability
and enables the functionality
that hybrid working demands and
employees have come to expect.
With its incredibly simple design,
CiA has created a new standard
in enterprise software, giving us a
significant competitive advantage.
For customers undertaking digital
transformations, this is the key to
future success.

Most trusted SaaS ERP
provider

We take the privacy and security of
our customers’ data very seriously
and weave this consideration into
the fabric of everything we do. We
are committed to building the world’s
most trusted SaaS platform for
enterprise software and will continue
to make significant investments to
that end. That’s why, since 2017, we
have achieved the highest-level
security accreditation of any SaaS
ERP vendor operating in Australia.

The foundation of our global SaaS
ERP solution is a class-leading
security and compliance program
designed to give our customers the
strongest protection and privacy.
As part of this program, we develop
and maintain our security framework,
which passes the most stringent

external verification, testing and
scrutiny.

Customers receive the benefit of
these certifications, along with
ongoing security and privacy
enhancements, at no extra charge.

Taking SaaS to the next level

It’s SaaS, but better. All our
customers’ ERP needs are in one
place with Solution as a Service
(SaaS Plus). We are leveraging
our unique domain experience of
over 36 years and our unwavering
commitment to our industries by
taking complete responsibility to
deliver outcomes with our best-in-
class SaaS ERP.

With SaaS Plus, TechnologyOne takes
full responsibility for the complete
outcome of the solution experience,
not just the software – removing the
need for traditional long, complex,
risky and expensive implementations.

Our all-inclusive offering is specifically
tailored for the industries we serve,
delivering industry specific software
solutions.

Harnessing TechnologyOne’s unique
‘Power of One’, SaaS Plus offers end
to end software implementation
quickly, securely, and efficiently.
Ensuring there is minimal risk for our
customers.

This innovation sets a new industry
benchmark and redefines the
relationship between technology
providers and customers, removing
the need for expensive third-party
consulting practices and complex
implementations. SaaS Plus will
change the world of ERP solutions
and move us forward into the future.

CiA Live

Taking customers from one
generation to the next, CiA Live is the
simple solution to upgrade business
processes from our previous Ci
platform to our CiA platform.

When signing up for CiA Live
customers don’t need to worry
about the upgrade process –
TechnologyOne has it covered.

TechnologyOne Annual Report 2023App Builder

A simple no-code offering that further
extends the TechnologyOne software
and helps solve our customers’
business problems quickly and easily.

App Builder allows users to extend
our ERP and create applications
inside our TechnologyOne ecosystem,
with no code and little training,
empowering customers to further
personalise the software solutions for
their business in real-time.

Each one of our customers is
different, while operating in similar
markets, no challenge or opportunity
is exactly the same. App Builder exists
as a more intimate and unique way
for TechnologyOne to solve specific
challenges for each individual
customer.

DXP (Digital Experience
Platform)

TechnologyOne’s Digital Experience
Platform (DXP) extends the power
of enterprise software for our
customers to reach and interact
with their customers. Enabling
organisations to digitally transform
with our simple, intuitive interface
that offers a streamlined customer-
centric experience. Leveraging
next generation technologies such
as Artificial Intelligence (AI) and
machine learning (ML) DXP allows
open, accessible, and convenient
engagements, from anyone, in any
way.

It is a smart, frictionless platform that
provides tailor made experiences for
customer service, content creation,
and communities. Reinvent the
customer journey with a simple
interface that takes the guess
work out of customer service and
experience the true power of an
interconnected system with a
centralised location for name records,
content, and more.

TechnologyOne has released
our Local Government DXP and
is continuing to work on the
development of our Student DXP.

Our commitment to innovation

In FY23, we invested $112 million in
R&D to improve our SaaS offering
with new enhancements and

Standard

TechnologyOne

Infor

Workday

SAP

IRAP (PROTECTED)

IRAP (OFFICIAL)

NZ IRD SPS 13/01

ISO/IEC 27001:2013

ISO/IEC 27017:2015

ISO/IEC 27018:2014

ISAE 3402 SOC1

AT-C 205 SOC2

AT-C 205 SOC3

SSAE 18

Cyber Essentials Plus (UK)

innovations.

Running on one global code line
allows us to continuously deliver
new innovations to our customers,
who benefit from the scale of our
investment as an enterprise vendor.
With each new customer, our solution
is enriched with new IP that powers
the evolution of our software.

Each customer benefits from the
hundreds of millions of dollars that
we have invested to date and our
commitment to continued investment.
We take care of patching and
upgrades and offer two major
software releases per year.

Our SaaS offering is massively
scalable, resilient and fault tolerant.
All our customers run the same
code-line globally, and all processing
resources are shared. When we
make an improvement to the service,
we automatically roll out that
improvement to all our customers.

It is a testament to the collective
skill of our people and organisational
structure that we have achieved such
a competitive advantage and level
of differentiation in the SaaS market.

Our SaaS monitoring platform

(Insights) gives us unprecedented
visibility of the real-time performance
and reliability of our SaaS
environments and software. This
enables us to analyse, detect and
respond to issues faster than ever
before. Insights also strengthens our
support processes by connecting
our development teams directly with
customers.

TechnologyOne University

TechnologyOne University is the
learning and training hub for our
software. Through the power of SaaS,
all our customers can receive self-
paced learning and comprehensive
training on any device, anywhere, at
any time.

An innovative digital learning solution,
TechnologyOne University gives our
customers a dynamic, real-time and
up-to-date self-service support and
education option that empowers
users at all levels.

Making life simple for our communityOur growth

TechnologyOne Annual Report 202340

Showcase 23

Aimee van der Hulst
E X E C U T I V E A S S I S T A N T

Southern Downs Regional Council

Making life simple for our communityGlobal SaaS ERP solution

Our ongoing success has been
underpinned by the incredible
growth of our SaaS business, which
doubles in size every 18 months.
This is powering the growth of
TechnologyOne, which continues to
double in size every five years.

We now have over 800 customers
on our global SaaS ERP solution, with
34 of those customers taking up our
SaaS Plus offering.

Our solution is a clear market leader
because we are the only enterprise
vendor to offer a true SaaS ERP
solution across the entire enterprise.
Unlike many other software providers
that use cloud hosting, we own,
build, and support our software.
Because other providers handcraft
each customer’s environment, they
cannot offer similar shared benefits or
economies of scale.

On track to surpass $500m+
ARR by FY25

TechnologyOne is focused and we
are clearly on track to surpass our
strategic goal of reaching $500
million+ Annual Recurring Revenue
(ARR) by 2025. To achieve this, we are
focused on a number of platforms for
growth:

•

Driving the growth of our
customer base

Expanding within our vertical
markets

Expanding our product range
and depth

Becoming a SaaS Plus company

Growth in the UK, and beyond

We see the UK as a significant
growth area, demonstrated by the
increased success we have seen in
that region over the last five years.

We are also leveraging our unique
domain experience and unwavering
commitment to our industries
with SaaS Plus. Taking complete
responsibility to deliver outcomes
with our best-in-class SaaS ERP to
become a true SaaS Plus company.

1. Driving the growth of our
customer base

As an established company with
over 36 years of success, we
benefit from the investment of more
than 1,300+ customers. We draw
on these relationships and deep
industry knowledge to power our
success and bring new customers to
TechnologyOne.

We focus and specialise on six large
vertical markets, which enables us to
build deep industry knowledge and
develop preconfigured solutions that
quickly meet our customers’ needs.

There is a significant runway for
us to expand our customer base
across all markets and grow our
solution footprint as we add value for
customers.

This growth is supported by the
vertical alignment of our marketing,
sales, product, and consulting teams,
and is a testament to the deep
industry knowledge and expertise
that we have developed in-house
across these fields.

2. Expanding within our
vertical markets

We have experienced continued
success and expansion within each
of our vertical markets. The adoption
of our global SaaS ERP has also
enabled us to further penetrate our
key vertical markets.

Driving adoption of our global SaaS
ERP, TechnologyOne has made the
transition to our SaaS solution simple
and seamless for our on-premise
customers. They can move to SaaS in
weeks, not years, like those using our
competitors’ products.

By transitioning to SaaS, our on-
premise customers will unlock the
significant benefits that our SaaS
customers already receive.

Our end of on-premise strategy
aims to end our on-premise business
by October 2024. This watershed
milestone gives our remaining on-
premise customers ample time to
make the transition to our global
SaaS ERP solution.

We expect 90%+ of all our remaining
on-premise customers to move to our
SaaS solution, driving the growth of
our SaaS business.

Increasing adoption of our products

Our global SaaS ERP solution
comprises of 16 products and up to
30 modules per product, delivering
the deepest functionality for the
markets we serve.

Our solutions are modular by design,
providing customers with the flexibility
to add new products as their needs
increase.

We’re constantly enhancing the
functionality of our products and
delivering new innovations, for the
benefit of our customers. This has
been key to our 99% customer
retention and our continued growth.

Our focus for existing customers is
to increase our product footprint, to
ensure customers are benefiting from
the full depth and breadth of our
solution.

3. Expanding our product
range and depth

We work closely with our customers
to ensure we understand their needs,
meet their priorities, drive continuous
improvement, and provide an
increasing range of functions within
our enterprise solutions.

Our goal is to build proven practices
into our solutions and deliver the
best software and services available
for our customers. The result is that
we continue to extend our product
offering by developing additional
features and functions – further
building on what is already one of
the world’s most comprehensive
enterprise software suites.

By re-engineering all our products for
CiA, customers can enjoy the same
software functionality across any
device, anywhere, any time.

Through DXP, we are extending
the reach of our software from the
back-office power users such as
accountants, payroll clerks, student
administration, and customer service
teams, to the front office end users

TechnologyOne Annual Report 2023such as employees, ratepayers, and
students, making the power of ERP
available to everyone.

Our sales, marketing and customer
success teams keep customers
informed about recent developments
and the experience of fellow
TechnologyOne customers. This
helps customers further improve
their technology systems, business
processes, and models.

Building on this partnership approach,
the TechnologyOne customer
community has transformed our
support experience. As a dynamic
group of TechnologyOne experts and
customers, the customer community
provides a world-class support
experience to customers. It also
enables them to influence product
direction, keep up to date with
industry news and collaborate with
other customers.

Our Timetabling and Scheduling
product has solidified our dominance
in the Higher Education market, with
75% of institutions in Australia and
50% in the UK supported by this
product.

This supports our strategy to deliver
a student-centric, end-to-end SaaS
ERP solution for the Higher Education
sector.

4. Becoming a SaaS Plus
company

It’s time to take SaaS to the next
level. All of our customers’ ERP needs
are in one place with Solution as a
Service (SaaS Plus).

We are leveraging our unique domain
experience of over 36 years and
our unwavering commitment to
our industries by taking complete
responsibility to deliver outcomes with
our best-in-class SaaS ERP.

With SaaS Plus, we take full
responsibility for the complete
outcome of the solution experience,
not just the software removing the
need for traditional long, complex,
risky and expensive implementations.
Through one code-line, one plan, one
price, and one point of call.

It’s an all-inclusive offering
specifically tailored for our customers’
industries and delivers all aspects
of our enterprise solution – including
implementation. The single yearly
fee contains all the costs required to
implement, run, support, and upgrade
our solutions.

5. Growth in the UK, and
beyond

We see the UK as a significant
growth area, demonstrated by the
increased success we have seen in

that region over the last five years.
In FY23, we built on our breakeven
status, with SaaS ARR $20,585,799.41,
up 78.2%.

Our team continues to execute our
value proposition and strategies in
our two industries, Local Government
and Higher Education.

FY23 saw Coventry University and
Buckingham University sign up
to our state-of-the-art Student
Management system. This is another
milestone for our internationally
trusted solution. These two esteemed
institutions join over 100 of our Higher
Education customers benefiting from
TechnologyOne products across the
UK.

SaaS Plus is also now the UK’s
primary delivery option with 80 per
cent of deals within the UK being sold
leveraging our SaaS Plus solution.

We have global locations across
Australia, the United Kingdom (UK),
New Zealand, the South Pacific and
Asia. We have adapted our business
to meet the differing needs of
customers in each of these regions.
We adapt our sales strategies for
different regions as we identify new
and ongoing customer needs. Soon
we will explore opportunities in new
geographies, including the US.

Deepest functionality for
the markets we serve

A deep understanding and engagement with our
key markets means we can deliver to our customers
integrated, preconfigured solutions that provide
proven practice, streamlined implementations and
reduce time, cost and risk.

Making life simple for our communityShowcase
2023
Unleash
the future.

as well as explore how Software as a
Service (SaaS) is empowering industry
transformation, ensuring our customers
partner with us to be at the forefront
of change.

With educational breakout sessions
exploring key industry trends and
insights from our knowledgeable
business leaders and inspiring guest
speakers, including ex-professional
tennis player Ash Barty and surfing
legend, Steph Gilmore, over 1,600
customers and prospects enjoyed
sessions that aimed to help them excel
within their fields and make the most
out of their TechnologyOne solutions.

Showcase is TechnologyOne’s
largest external event, open to both
customers and prospects. The event
is held every couple of years over one
day to deliver product and industry-
focused updates.

In FY23 Showcase was held in all
regions we serve across Australia, New
Zealand, and the UK. It was considered
a milestone in TechnologyOne’s
development, launching some key
initiatives that are shaping the future
of the company and how we interact
with our customers, including CiA, DXP,
Solution as a Service (SaaS Plus), and
more.

The seven events deep dived into
how we’ve been innovating to
solve the complex and change our
communities for the better and
offered our customers the chance
to discover exciting new innovations
with our platform for the future, CiA

TechnologyOne Annual Report 202341

Making life simple for our communityOur operations

TechnologyOne Annual Report 2023Steve Brown
I T C O O R D I N A T O R

Southern Downs Regional Council

Making life simple for our communityStuart
MacDonald

Chief Operating Officer

relationship between students and
their universities.

Delivery done differently – SaaS Plus

The standout achievement of the
year was our announcement of
Solution as a Service, known as
SaaS Plus (SaaS+), to the market,
and it’s unbelievable success in
only its first year. Customers with
SaaS Plus are already experiencing
significant benefits given that the
implementation of our products
now only takes weeks, not months.
With TechnologyOne taking on
full responsibility for delivery, this
mitigates risk for councils, government
departments, and universities in
implementing ERP, allowing us to
benefit from the speed and scale of
the opportunity.

What a truly exceptional year it
has been, and all thanks to our
amazing team at TechnologyOne.
Their unwavering determination to
make the impossible possible, always
guided by our customers being our
true north, has been the driving force
behind our success.

For TechnologyOne, FY23 was a
year of focusing on customer-centric
initiatives, breaking new ground,
making the impossible possible, and
achieving remarkable records once
more.

Customers are our true north

At the start of the year, we refreshed
our company values, centring
them around our core belief that
customers are our true north. With
this mindset, we embarked on FY23
with ambitious goals, reaffirming our
commitment to actively engage with
our community and support them in
every way possible. From pioneering
groundbreaking new products, to
evolving the delivery of solutions
and delivering on our pledge to help
500,00 children and their families out
of poverty.

Showcasing our talent

We hit the road to promote the
completion of our next generation
platform CiA, through our world-
class Showcase events. Conducting
five events in Australia, one in New
Zealand, and, hosting our inaugural
Showcase event in London marked
a significant milestone in our
history. Throughout these events,
we met thousands of customers
and prospects, shedding light on
how CiA could support them and
offering insights into our future
roadmap. The UK Showcase stood
out as the highlight of the campaign,
attracting over 400 customers and
prospects who spent the entire day

with the TechnologyOne team, of
over 100 members, including the
full senior leadership team. It was a
transformational event for us, firmly
putting TechnologyOne on the map
for local government and education
in the UK.

End of on-prem

Along with completing our next
generation platform CiA, in FY23
we successfully completed our
customers’ transition from traditional
on-premise software to SaaS. This
12-year journey has had a profound
impact on every aspect of our
company. As a result, we took this
opportunity to review and refresh
our mission, purpose, values, core
beliefs, and even our tagline to align
our identity as a SaaS company and
pave the way for our evolution into
being a SaaS Plus company moving
forward.

Customer experience
redefined

After over five years of dedicated
research and development, we
unveiled the first three phases of DxP
LG to the market. Our first customer
described the experience as “Google
to outcome”, highlighting the intuitive
design and usability that is already
resonating with our customers.
Looking ahead, we are well on track
for the launch of DxP Student to our
education customers late in FY24.
This release will empower students
with OneEducation, ushering in an
unprecedented evolution in the

TechnologyOne Annual Report 2023As a department, our mission
is to drive trust, alignment and
transparency across the business.
We do this through empowering
and supporting our team members,
providing frictionless systems,
processes, and encouraging
knowledge sharing.

Cale
Bennett

Chief Financial Officer

Supporting our people

Supporting our business

To support our global team members’
financial wellbeing, FY23 saw the
successful delivery of our first
Employee Share Plan (ESP). The
TechnologyOne ESP is an opt-in
scheme established to help foster
a culture of shared ownership in the
business, offering team members
the opportunity to purchase shares
in a simple and straightforward way.
Ultimately, providing access to what
we consider the ASX’s best share
plan available.

Aligning with our core value, People
are our Power, in FY23 the team drove
bottom-line benefits through positive
working capital efforts and effective
cash deployment. This will continue
throughout FY24 and beyond as we
constantly explore ways to invest in
and enable our people.

Another focus of the last year has
been enhanced collaboration with
the Strategic Planning team, with an
aim to deliver a more robust plan
for the future of TechnologyOne
and improving alignment between
business streams to collectively
deliver our strategic goals.

Throughout FY23 the team also
placed a heavy emphasis on system
enhancements and innovation,
notably by implementing our Quote
to Cash system, which enables
productivity through consistency
and automation. Looking to FY24,
this functionality will be further
enhanced to provide a self-
service model that delivers a more
compelling experience for our internal
stakeholders.

Finally, we continue to improve
our risk intelligence by adopting
a proactive approach to risk
management. This has involved the
ongoing review of risk frameworks
and assessments as well as applying
new technologies to make our
compliance process more efficient
and effective.

Making life simple for our communityFY23 proved to be a milestone
year for the Sales and Marketing
team, validated by our customer
engagement and successful
partnership strategies across all our
key industries. The continued focus
on partnering with our customers,
enabling digital transformation to
keep our communities at the forefront
of innovation, and new partnerships
have allowed the team to build
deeper strategic alignment with our
industries and regions.

Tim
Moylan

Executive Vice President -
Sales and Marketing

These watershed wins accelerate our
‘buy local’ campaign at the Australian
Federal and State Government level
and showcase that TechnologyOne
continue to be the gold standard in
Local Government. In the UK, Student
Management has also gained
significant traction throughout FY23
and established credibility in the
Higher Education sector, our most
important growth market.

SaaS Plus

Finally, ensuring our customers
continue to get the most out of their
solutions and be at the forefront of
innovation, we’ve had great traction
with SaaS Plus within the first year of
positioning this new methodology to
all markets, giving our team strong
momentum moving into FY24.

Customer engagement

Strong customer engagement was
evident with the success of our
world-class Showcase events, held
across all regions we serve and
culminating in an inaugural Showcase
event in London. These events saw
over 1,600 customers and prospects
attend sessions that explored our
new innovations and how to get the
most out of our solutions.

Partnering for success

Our team demonstrated their ability
to execute our strategy of enhancing,
retaining, and acquiring new
customers with lighthouse wins with:

•

Australian Federal Government
Department of Veteran Affairs

• WA Department of Education

•

Redlands City Council

Port Macquarie Hastings Council

South Taranaki District Council

Ashfield District Council

North Hertfordshire District
Council

TechnologyOne Annual Report 2023Chandan
Potukuchi

Chief Technology Officer

FY23 saw the team welcome Chief
Technology Officer, Chandan
Potukuchi, with an extensive
background in product development,
SaaS software.

Seizing the opportunity for further
growth, the team also welcomed new
talent both internal and external. This
dynamic mix continued to help us
accelerate our journey to become a
leading SaaS provider, aligning with
our objectives and strategies.

While there has been a lot of growth
within the team with new talent,
we also demonstrated a strong
commitment to leadership excellence
through multiple Leadership Summits
throughout FY23. These events
provided our leadership team
with dedicated time for strategic
discussions, values alignment, and
leadership skill enhancement.

Strategic business
realignment

FY23 saw the successful restructuring
of the department, amalgamating
our New Engineering, Products, and
SaaS teams into a unified group.
This strategic move enhances
collaboration, fosters innovation,
and places a strong emphasis on
continuous improvement of our SaaS
architecture and services.

Customer-centric software
releases

Our two major software releases,
2023A and 2023B, were successfully
delivered throughout FY23.
Incorporating customer-driven
features and improvements. This
underscores our commitment to
providing cutting-edge solutions
tailored to our customers’ evolving
requirements.

Agile development
transformation

Global engagement and
collaboration

Through implementing agile
development methodologies
throughout the year across the entire
R&D group, the team cultivated a
culture of empowerment, ownership,
and accountability. This strategic
shift enhances product quality and
expedites the deployment of our
SaaS solutions and delivering faster
time to value for our customers.

Finally, FY23 saw the successful
execution of our Showcase customer
event series, various user groups,
and customer events, facilitating
invaluable interactions between
our team and the communities we
serve. This engagement has helped
enhance our understanding of
customer needs and expectations.

Making life simple for our communityThe UK had another strong year,
achieving profit before tax of $3.7m,
with the team continuing to execute
our value proposition and strategies
in Local Government and Higher
Education.

FY23 resulted in ten new customers,
including some of the biggest local
authorities and higher education
institutions within the UK. Continuing
the success that we have seen across
the UK customer base, which has
doubled year on year.

Leo
Hanna

Executive Vice President –
United Kingdom

Higher Education strategy
and results

FY23 saw Coventry University
and University of Buckingham
both select our state-of-the-art
Student Management system. This
year also saw the migration of 21
Timetabling & Scheduling customers
from their on-premise software to
our world-leading SaaS platform.
This number demonstrates the
team’s commitment and successful
execution of TechnologyOne’s end of
on-premise strategy.

Showcasing TechnologyOne
to the market

On Thursday, 27 April, we held our
inaugural UK Showcase event with
over 400 delegates in attendance,
making a large impact on the
markets we serve, current customers
as well as potential customers.

The event included a diverse line-up
of speakers that shared technology
previews and expert advice, while our
customers shared their stories about
how they leverage our products
and successfully partner with the
TechnologyOne team.

Pioneering SaaS Plus

Leveraging our unique domain
experience and our unwavering
commitment to our industries,
TechnologyOne is taking complete
responsibility to deliver outcomes with
our best-in-class SaaS ERP, through
SaaS Plus.

Now the UK’s primary delivery option,
eighty percent of deals within the UK
have been sold leveraging our SaaS
Plus solution.

People are our power

Aligning with a TechnologyOne
key value, ‘people are our power’
I’m pleased to announce that our
team continues to grow and be
welcomed into our UK-based office.
FY23 saw the addition of 20 new
UK-based team members. Many
of our new hires are based in our
Sales and Consulting departments,
demonstrating our commitment to
the UK, Higher Education, and Local
Government markets.

TechnologyOne Annual Report 2023In FY23 the Customer Experience
team was formed, combining our
Consulting, AMS, Support, Customer
Success, and Solutions teams, to
continually align all customer facing
service and delivery functions to
ensure a deep market focus and
commitment that differentiates us
from competitors.

David
Cope

Executive Vice President –
Customer Experience

Customer focus and success

SaaS Plus

Following on from the FY22 launch
of SaaS Plus, FY23 saw the benefits
of the SaaS Plus time to value come
to life through repeatable and
rapid adoption with simplicity of
implementation.

With SaaS Plus TechnologyOne takes
responsibility for the outcome of
the solution experience, not just the
software. Moving into FY24 the team
will continue to refine and enhance
the methodology to drive down the
time to value, reduce risk, and solidify
outcomes for our customers.

Throughout the year AMS saw strong
growth with the continued drive to
navigate efficient and effective use
of the TechnologyOne platform as
customers adopt CiA.

In FY23, we evolved our
TechnologyOne Training Series to
an ongoing subscription model. This
saw a strong uptake with ongoing
enablement for customers across
new features and functions, as well
as platform services.

The team also had ongoing success
within our key industry markets of
Local Government, Government, and
Higher Education implementations
across ANZ and the UK.

Finally, Support utilised the wide-
spread adoption of AI powered
search capabilities which enabled
streamlined knowledge sharing and
self-service between our teams and
customers.

Making life simple for our community
Our mantra at TechnologyOne has
recently evolved to ‘Making life
simple for our community’, and the
People & Culture and Corporate
Services teams work together to
bring that mantra to life. Enabling
our people to do amazing things and
truly make a difference throughout
our communities.

Alison
Chalmer

Executive Vice President –
People & Culture and
Corporate Services

Leadership

Our People & Culture team are
focused on developing leadership,
driving results and protecting our
TechnologyOne culture, which has
been an integral part of our success
over the last 36 years.

Key to this has been our ongoing
investment in the Leadership Summit
Series, comprising of three separate
Summits. Bringing together our top
100 leaders these Summits aim to
create alignment, transparency,
and trust through gaining a shared
understanding of our TechnologyOne
vision, mission, core beliefs, values,
compelling customer experience,
and our approach and cadence to
planning and execution.

Our investment in leadership will
continue throughout FY24 and
FY25, assuring consistency and
clarity, underpinning our leadership
capability and growth.

Recruitment and Diversity

FY23 also saw our teams strengthen
their focus on placing the right
people in the right place, at the right
time – with a strategic investment
in resources in leadership, R&D,

and Customer Experience roles.
In FY23, there was also a focus
on strengthening the increased
investment into our offshore delivery
centres, creating scale.

Overall, female representation
within TechnologyOne increased
to 38% in FY23 from 37.4% in FY22.
Surpassing the industry average of
30%, this reflects the positive steps
TechnologyOne have taken to create
an equal opportunity workplace.

Our People

Our company eNPS (Employee Net
Promoter Score) increased in FY23
from +33 to +34, moving us towards
our target of +50 and indicating
our initiatives are assisting with
engagement.

Finally, our focus on wellbeing
continues with the launch of our
Employee Share Plan, HQ ‘Health Lab’
gym plus gym memberships for team
members working in offices around
the globe, and the continuation of
a number of our inclusion activities
including, Men’s Health Week,
International Womens Day, and more.

TechnologyOne Annual Report 2023One of the highlights of the year was
the acceleration of our $500 million
Annual Recurring Revenue (ARR)
target from financial year 2026 to
2025, marking a significant milestone.
In establishing our ambitious 2030
goals, we implemented several
strategic initiatives that position our
business for sustained growth and
success.

Brock
Douglas

Executive Vice President

Critical Incident Response
Management – a safe pair of
hands.

Recognising our role as a
provider of critical infrastructure
for our customers, we prioritised
enhancing our critical incident
response capabilities. This involved
a top-to-bottom review and the
implementation of a new critical
incident response process and
playbooks for key incident types.
Our proactive approach was
validated through externally run
simulation exercises, stress-testing
our processes, systems, and people.
Our innovative updates have gained
recognition from our ASX peers, and
we are honoured to be sought out
by ASX listed companies to share our
expertise in this vital area.

Location Optimisation –
an enabler of growth.

In pursuit of our 2030 targets, we
strategically assessed how and
where we deliver our products
and services. This comprehensive
strategy places our key resources
closer to our customer to align
with their geographic compliance
and product localisation needs.
As part of this initiative, we also
established a service delivery centre
in Kuala Lumpur, Malaysia, building
on our 20-year history with local
customers. By the end of financial
year 2024, this centre will host over
150 team members dedicated
to driving our CiALive and SaaS+
strategic initiatives. Notably, we
have achieved a remarkable 45%
female diversity representation in the
establishment of our service centre,
surpassing the industry standard of
30%. Furthermore, we enhanced the
quality of our product releases by
establishing quality assurance testing
centres of excellence in our existing
Indonesian and Vietnamese centres.

Back-end systems –
systemising Licence to SaaS+.

A critical aspect of our evolution
into a SaaS+ company is aligning
our back-end systems to support
the new business paradigm. We
completed a review of critical
systems for alignment to SaaS+,
implementing a new pricing system
and commencing work on full self-
service capabilities to empower our
customer-facing sales teams.

Making life simple for our community
Our people

TechnologyOne Annual Report 202354
62

Culture

Sustainability
performance
at a glance

Foundation

Making life simple for our communityCulture,
collaboration
and alignment

At TechnologyOne, we believe in a culture of innovation,
creativity, and collaboration, and have created an
environment that allows our people to thrive. This culture is
built into the fabric of our business, driving high performance
and underpinning our success.

Over the last four years, we have focused our operating
model and business to be a true SaaS business, and pivot
away from an on-premise operating model.

Employer of Choice

Our people are a crucial source of
our competitive advantage, and we
purposefully invest in initiatives that
support the recruitment, retention,
development, and progression of
individual talent within our workforce.

As a nationally recognised Employer of
Choice, TechnologyOne is committed
to providing an environment in which
our talented people can be innovative,
creative, and realise their full
potential. This year, TechnologyOne
received more than 11,574 recruitment
applications.

We also value the voices of our
team members to help shape our
organisation. Our Employee Net
Promoter Score (eNPS) surveys provide
a channel for our people to be heard,
with the results used to influence
ongoing enhancements to our
initiatives and programs.

Extensive onboarding and
training

TechnologyOne hires passionate,
talented, and innovative people who
are inspired to think about the future.
Our comprehensive onboarding
program provides the best possible
start for our people in their careers
at TechnologyOne. We continue to
support our commitment to developing
our people and growing their careers

by delivering training in leadership,
technical, and professional skills
development.

This year, we also welcomed
275new team members who joined
TechnologyOne. Our market-leading
orientation and onboarding experience
enabled us to seamlessly welcome
our newest team members to the
TechnologyOne family.

Cultivating a culture of
innovation

The innovation and creativity of our
team is key to our success.

With a team of more than 400
developers, TechnologyOne runs
one of the largest Australian-owned
R&D centres for enterprise software.
In addition to our R&D centres in
Brisbane and Perth, we have offshore
R&D centres in Indonesia and Vietnam,
allowing us to extend our capability
and better support our customers and
existing products.

Our developers are leaders in their
field who challenge conventional
thinking and go beyond the traditional
realms of development methodology.
Our state-of-the-art R&D centre
and initiatives are designed to
foster collaboration, creativity, and
innovations that provide the platform
for our future growth.

TechnologyOne Annual Report 202355

Making life simple for our communityCollaborative facilities
and technology

Our focus over the last few years
has been ensuring we can maintain
flexibility and provide an environment
conducive to learning, collaboration,
and in-person collisions that spark
innovation, which is at the heart of
our culture.

To support this, we have continued
to invest in our physical offices, the
refit for our office supports our laser
focus on customer outcomes as we
know that to solve the complex for
our customers and the communities
we serve we need to optimise our
workspace to enhance collaboration
and create space for dedicated
customer interactions.

Our spaces are designed to foster
creativity and teamwork, with
collaborative spaces for team
members and graduates to innovate
and develop world-class software.
With technology and design being
at the forefront of the concept, the
Village Green social areas provide
spaces in our offices to showcase
the ongoing accomplishments and

achievements of the company in
an environment that reflects our
products and values.

This combination of company-
led flexible working and in-person
collaboration has allowed us to
maintain productivity, drive creativity,
and honour our Power of One core
belief, which is contingent on cross-
team engagement.

People initiatives to drive
employee engagement

In order to continue to double in size
every five years, we continue to invest
in our leaders through our Leadership
Summit. FY23 saw our second
Leadership Summit take place with
cohort one graduating and cohort
two commencing, these summits
aim to grow our leaders, teach the
TechnologyOne Way, and equip them
to continue to lead our teams.

During the year we also undertook
numerous wellbeing initiatives for
our people. We continued our work
with Stephanie Gilmore as our brand
ambassador, focused on physical
and mental wellbeing. We kicked off
our One Talks again, an event held

on the rooftop of our HQ building
and streamed live. One Talks feature
a different speaker each week,
designed to keep our team up-to-
date on the latest news from across
the company, from the people doing
the work on the group. We also
continued Surprise and Delights, an
initiative aimed at ensuring consistent
company and leader-led team
activities that would drive team
reconnection and build excitement.
The Surprise and Delight ‘menu’ of
activities featured team lunches,
themed Friday drinks, random acts of
kindness and hosted events.

In addition to these initiatives,
we continued our investment in
existing employee engagement
and recognition initiatives, including
Hack Days, MARVELs, Town Halls, and
Regional Days.

Hack Days provide employees the
opportunity to collaborate across
functional teams and work on
projects that fall outside their normal
day-to-day work. These Hack Days
are key to driving our culture of
innovation and creativity. Our Hack
Day has been extended to be a

TechnologyOne Annual Report 2023newest graduates work across
TechnologyOne with the company’s
most influential and skilled leaders,
who provide them with valuable
learning opportunities and
experience.

two-day event, which allows us to
better engage with team members
across the globe, given the various
time zones.

Meanwhile, our MARVEL awards
celebrate team members who go
above and beyond and showcases
ordinary people, doing extraordinary
things. They are designed to
recognise and reward top talent, as
part of our achievement-oriented
culture. MARVEL stands for Merit,
Achievement, Recognition, Values,
Excellence and Leadership.

Categories for the MARVEL awards
are centred around our key initiatives.
These include:

•

Leader of the Year

Compelling Customer Experience
of the Year

Hack of the Year

Rookie of the Year

TechnologyOne Superheroes

Winners of the MARVELs receive
company-wide recognition and
are inducted into TechnologyOne’s
League of Extraordinary People.

Our quarterly Town Hall meetings
provide employees with the chance
to hear from our CEO and other
TechnologyOne executives about
company direction and strategy, as
well as ask questions directly that
are answered in real time. These
were complemented by our Regional
Days for Sales and Consulting, where
these teams discuss strategy and
goals, allowing them to strengthen
relationships across regions,
teams, and projects, and improve
engagement across the whole
organisation.

Graduate program

Our graduate and intern programs
form the foundation of our talent
pipeline into the future. Our graduate
brand and experience is highly
regarded by our peers, competitors,
and industry bodies alike. We
received more than 387 applications,
highlighting the competitive and
highly sought-after nature of our
program.

Our award-winning graduate
program runs across our software,
sales, and consulting teams. Our

Making life simple for our communityIndustry
partnerships

We are committed to actively fostering a diverse and
vibrant information and communications technology
(ICT) industry. We want to create interest around this
exciting time in Australia’s economy and ensure we are
engaging early with Australia’s youngest and brightest
minds in science, technology, engineering, and maths
(STEM) subjects. With a focus on diversity and building
exceptional female talent pipelines.

TechnologyOne partners with Women in Technology and
Women in Digital to continue to build our recognition and
employee value proposition to attract rising female stars
to TechnologyOne.

TechnologyOne Annual Report 2023Equal
Opportunity

TechnologyOne takes diversity and inclusion seriously. We
advocate for equal opportunity for all and are committed
to addressing the shortage of female technology
professionals in Australia. To help achieve this, we provide
equal pay opportunities for men and women and have a
zero-tolerance policy for discrimination and harassment of
any kind.

Recruitment and promotion within TechnologyOne are
based only on the relevant skills, experience, qualifications,
aspirations, potential and aptitude of applicants. Women
make up 38% per cent of TechnologyOne’s workforce,

which is high compared to other technology and software
companies globally. However, we are committed to further
increasing the representation of women by working with
strategic partners to encourage more women to pursue
STEM-based careers. In doing so, we play a leading role
in growing a more diverse pipeline of future candidates to
work in technical fields and at TechnologyOne. Some key
programs TechnologyOne supported this year included
the Women in Digital and the Queensland Women in
Technology Awards.

Making life simple for our communityWellbeing
Initiatives

At TechnologyOne, our ‘People are Our Power’, with a firm
belief that in keeping healthy minds, bodies, and finances
ensure our Life@TechOne has balance and purpose.
Wellbeing is a key priority for the organisation and consists
of three key pillars: Mental, Physical, and Financial.

To support team members’ financial wellbeing, the
company launched the first Employee Share Plan (ESP).
The TechnologyOne ESP is an opt-in scheme established
to help foster a culture of shared ownership in the
business, offering team members the opportunity to

purchase shares in a simple and straightforward way.
Information sessions to help educate team members on
shares was offered as part of this program.

Getting active positively impacts both physical and
mental wellbeing. TechnologyOne offers all team members
access to a gym near their local office to help team
members seamlessly make exercise part of their day-to-
day life.

TechnologyOne Annual Report 2023Sustainability

TechnologyOne also retires credits generated by the
Oakvale Native Forest Protection Project in NSW which
protects native forest from deforestation and in turn
protects the native fauna (including the crucifix toad,
planigale, kultarr, native bees, and wedge-tailed eagles
which make their home on the property).

TechnologyOne is committed to managing our business
operations in an environmentally responsible manner. Our
headquarters in Brisbane’s Fortitude Valley has a Six Green
Star environmental rating. The building includes numerous
environmentally rated sustainable development features,
including 50 per cent more fresh air than standard
commercial buildings, carbon dioxide monitoring, external
views to maximise daylight, energy-efficient lighting,
dedicated exhausts in photocopier areas, a gas-powered
generator and a large rainwater collection area on the
roof to supply water for the toilets and garden irrigation.

We are proud to continue our Climate Active carbon
neutral certification through offsetting our carbon footprint
with certified carbon credits generated through an energy
wind farm in India which re-invests the funds back into
the community including training for local youth and
developing local healthcare systems, clean water, and
sanitation.

Making life simple for our communityFY23
Sustainability
performance
at a glance

Responsible business

Customer

Community

•

Maintained a comprehensive
corporate governance
framework based on risk
management, compliance, and
assurance controls

Invested $112m in R&D for FY23,
which is approximately 25 per
cent of revenue.

Achieved FY23 record revenues,
profit and SaaS ARR

•

Maintained 99 per cent customer
retention and 99.9 per cent
SaaS uptime

Released two software upgrades
– 2023A & 2023B – to deliver
enhancements designed to
simplify the way our customers
work

Maintained SaaS certifications
and accreditations to provide
the highest levels of data
protection

•

$856,849 of profit contributed to
the TechnologyOne Foundation
to give back to our communities

5,341 hours volunteered
to charity and community
organisations

900 SolarBuddy lights/
assembled for disadvantaged
children in Fiji, Papua New
Guinea, and Sudan

Awarded the Community
Contribution Award 2023 by the
Australian Business Awards

Completed over 230 vendor
screening assessments for new
and existing suppliers

TechnologyOne Annual Report 2023For more information see our
Sustainability Report on our website
or scan the QR code.

Our people

Environment

•

Employee engagement score
increased to 34 (up 94 per cent
since FY21), a continued step
towards our FY26 target of +50

Increased women in senior roles
to 43 per cent

Awarded Employer of Choice for
2023 by the Australian Business
Awards

No fatalities or material
workplace injuries reported
during the year

•

Maintained Climate Active
carbon neutral certification for
our global operations

Decreased our global Scope 1
and 2 emissions by 19 per cent
against FY22

Set company-wide targets to
reduce our Scope 1 and 2 global
emissions by 80 per cent by
2025 and 100 per cent by 2030
from a FY22 baseline

Making life simple for our communityThe TechnologyOne Foundation is
dedicated to making a difference
to disadvantaged children and
families in our communities by
empowering them to transform their
lives and create their own pathways
to success. The Foundation was
established in 2016 to ensure that
charitable giving would become a
long-term initiative for the business
and encourage philanthropy to
become part of the company
culture. Our Foundation helps great
Australians achieve great things
and we are committed to long term
contributions to our key partners.

The 1% Pledge

The TechnologyOne Foundation is
part of the 1% Pledge corporate
philanthropy movement, which is
dedicated to making the community
a key stakeholder in every business.
In committing to the 1% Pledge

movement, individuals, and
companies donate 1% of their net
profit, product, and employee’s time
to their communities.

TechnologyOne donates 1% of annual
net profit to our charity partners,
supporting our vision of changing the
future by empowering disadvantaged
children and families to transform
their lives. This strategic approach to
charitable giving enables us to make
a bigger difference to the causes we
support.

Through the 1% product, our
commitment is to donate 1% of New
Annual Recurring Revenue each
year. This makes it easier for not-for-
profit organisations to access our
solutions and take advantage of the
efficiencies they provide, which in turn
extends the impact of their work.

All TechnologyOne team members
can also take up to 2.5 days leave
each year to volunteer during work
hours for charitable and nonprofit
organisations. This supports our 1%
of time commitment. The total 1%
Pledge equated to a more than $2
million commitment by the company
in FY23.

Our contributions have helped
children access education right
across the globe – from refugee
and First Nation students right here
in Brisbane and across Australia to
disadvantaged children and youth in
New Zealand, Tanzania, UK, Malaysia,
Indonesia, Vietnam and India. We
are proud of the impact we make
through our long-term commitments
to charitable organisations, helping
families escape the cycle of poverty.

TechnologyOne Annual Report 2023More then $2m global pledge.

Our goal is to
lift 500,000
children and
their families
out of poverty

The Year in
Summary

$856,849
Profit contributed to the
TechnologyOne Foundation to
give back to our communities

$442,265
Worth of product discounts
to NFPs

5,341 hours
Of volunteering, equating to

$41,371
Raised by team members
(employee generated)

Delivered
in house education programs
for The Salvation Army
Independent School

85
Charitable events
supported worldwide

900
Solar Buddies built

Making life simple for our communityOur Key
Charity
Partners

Opportunity International

Designs, delivers, and scales innovative financial solutions that help
families living in extreme poverty build sustainable livelihoods and access
quality education for their children.

The Salvation Army

Providing broad range and far-reaching social services to diverse
people experiencing hardship or injustice, including youth support,
accommodation services, addition recovery, emergency relief and
financial counselling.

The School of Saint Jude

Providing a free, high-quality education to children in poverty and with
social pressures in Tanzania to complete their schooling.

Solar Buddy

Uniting a global community to gift six million solar lights to children living
in energy poverty by 2030, to help them to study after dark and improve
their education outcomes.

The Fred Hollows Foundation

Treats, trains, and equips the local communities to expand the reach of
eye care services, ensuring the poorest and most marginalised groups,
including children, can access free or low-cost care.

The Smith Family

Helping disadvantaged Australians to get the most out of their education
to create better futures for themselves.

St James Bursary

Bursary Endowment Fund – Providing an extensive tertiary education
pathway to an array of cultural, socioeconomic, and academic
backgrounds.

Dignity for Children Foundation

Aims to break the cycle of poverty through the provision of quality and
transformative education for children aged 2 – 19 years.

TechnologyOne Annual Report 2023How we’re making a
difference over time

83,628 children and families in partnership
with Opportunity International Australia

900 lights in partnership with SolarBuddy

Enrolled 315 new students for a free quality
education and supported 210 of graduating
students on STEM pathways in partnership
with The School of St Jude

24 students provided TAFE and higher
education scholarships in partnership with
The Salvation Army

10,684 school children and community
members educated in eye health in
partnership with The Fred Hollows Foundation

Supporting 58 First Nations students and
working together to help close the gap in
educational outcomes in partnership with
The Smith Family

2,349 hot meals prepared for disadvantaged
Kiwi children in partnership with KidsCan

300 students have been equipped to ensure
they have an equal chance at school in
partnership with St James Bursary Fund

Our work with
Opportunity
International
Australia

Through our donations to and partnership with
the microfinance group Opportunity International
Australia, we are transforming communities and
helping families. We aim to lift 500,000 children
and families out of poverty over a 15-year period.

As a result of this partnership, families in India
can access small loans to enable them to build
businesses. This will also help them to earn regular
incomes to support themselves, as well as feed,
clothe, and educate their children.

With funds for initiatives such as starting a
shop or buying seeds for a vegetable farm,
families can transform their lives and their
children’s futures. Further, because 98 per cent
of the small loans are repaid and recycled, the
impact creates a positive ripple effect in their
communities as more jobs are created. Those
jobs might include delivering goods or helping
with sewing and weaving orders.

Boosting local communities

With more income and therefore more money
to spend on items such as food and transport,
families who used to live in poverty become
active participants in their local economies.

This benefits the providers of those products and
services, who are themselves often entrepreneurs.
This virtuous cycle ensures that microfinance
provides a long-term boost to economies and
helps to develop self-sustaining communities
more so than one-time handouts.

Creating change

Micro-entrepreneurs are also to use their
influence to bring about positive changes in their
communities. With the confidence that comes
with having their own businesses, people can
begin to seek better infrastructure or educational
facilities from government or bring local families
together to take on community projects.

Our support to date, with the benefit of leverage
and recycling of funda, has helped 83,628
children and their families to free themselves
from poverty.

Opportunity International believes that every
person has the right to reach their potential. Just
like us, people living in poverty have dreams and
hopes. But while talent is universal, opportunity is
not. Our giving to Opportunity is changing that
equation.

Making life simple for our communityFinancial
statement

TechnologyOne Annual Report 202369

Making life simple for our communityContents

Results for announcement to the market

Directors’ Report

Independent Auditor's Declaration

Remuneration Report

Corporate Governance Statement

Voluntary Tax Transparency Report

Financial Report

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

Directors' Declaration

Independent Auditor's Report

Shareholder information

Corporate directory - Technology One Limited

111

124

125

126

127

128

129

130

167

168

174

175

TechnologyOne Annual Report 2023

Appendix 4E

Results for announcement to the market
Results for announcement to the market
For the year ended 30 September 2023
For the year ended 30 September 2023
(Compared to the year ended 30 September 2022)

Revenue from ordinary activities

Profit from ordinary activities after tax attributable to members

Net profit for the period attributable to members

17%

16%

Dividends

CURRENT PERIOD

Interim dividend

Final dividend

Special dividend

PRIOR PERIOD

Interim dividend

Final dividend

Special dividend

2023
($'000)

2022
($'000)

429,378

368,234

102,876

88,843

Amounts
per security
(cents)

Franked
amount per
security
(cents)

4.62

11.90

3.00

4.20

10.82

2.00

2.77

7.14

1.80

2.52

6.49

1.20

The record date for determining entitlements to the final dividend for the year ended 30 September 2023 is 1 December 2023.
There will be no conduit foreign income paid on the final dividend. The payment date for the final dividend is 15 December 2023.

Profit for the ordinary activities after tax attributable to members
Breakdown of the revenue figures above

Revenue - SaaS and continuing business

Revenue - Legacy licence business

Revenue from ordinary activities

Down

19%

69%

Basic EPS

Diluted EPS

2023
($'000)

2022
($'000)

426,379

358,668

2,999

9,566

429,378

368,234

2023
(cents)

31.71

31.54

2022
(cents)

27.51

27.38

Weighted average number of ordinary shares outstanding during the period used in the calculation of the Basic EPS

324,422,822

322,953,789

NTA backing

Net tangible asset backing per ordinary share

2023
(cents)

20.04

2022
(cents)

10.01

Compliance statement
The report is based on the consolidated financial report which has been audited.
Refer to the attached full financial report for all other disclosures in respect of the Appendix 4E.

Pat O’Sullivan
Chair

Brisbane
21 November 2023

Making life simple for our communityDirectors’ Report

Your Directors present their report on the consolidated entity (referred to hereafter as the Company or
the Group) consisting of Technology One Limited and the entities it controlled at the end of, or during, the
year ended 30 September 2023.

The following persons were Directors of Technology One Limited during the financial year and up to the date of this report:

Pat
O’Sullivan

Appointed 2 March 2021.

Experience and expertise

Special responsibilities

Board Chair

Interests in shares and options

39,779 ordinary shares held in
Technology One Limited.

Pat is a Chartered Accountant and has
40 years’ experience working across
a wide range of industries both as an
executive and a non-executive director.
His last executive role was the Chief
Operating Officer and Finance Director
of Nine Entertainment Co Pty Limited, a
position he held for 6 years until June
2012 and prior to that he was the Chief
Financial Officer of Optus for 5 years.

He is currently Chair of
Carsales.com and Siteminder. His previous
ASX non-executive director roles include
Afterpay, iiNet, iSelect, APN Outdoor,
iSentia and Marley Spoon.

Pat is a member of The Institute of
Chartered Accountants in Ireland and
Australia. He is a graduate of the Harvard
Business School’s Advanced Management
Program.

TechnologyOne Annual Report 2023Edward
Chung

Appointed 15 August 2023.

Experience and expertise

Edward has led TechnologyOne through
its continued growth trajectory and
transformation into Australia’s leading
enterprise Software as a Service (SaaS)
business. With a passion for growth,
innovation, and TechnologyOne’s people,
he led the business to become one of
Australia's ASX 100 listed companies in
2023 and has long-term continued growth
in his sights for the future.

Appointed as CEO in May 2017 after
more than 10 years in senior executive
roles at TechnologyOne, including one
and a half years as the company’s Chief
Operations Officer. From 2014, Edward
headed up TechnologyOne’s products and

solutions division, including Research and
Development (R&D) where he led the team
that transitioned the business into a fully
SaaS-based organisation. Prior to that he
led the finance and corporate services
division and developed the commercial
frameworks to drive the company’s
expansion.

Special responsibilities

Managing Director

Interests in shares and options

700,068 ordinary shares and 1,340,002
options held in Technology One Limited.

John
Mactaggart

FAICD
Appointed 8 December 1999.

Experience and expertise

Interests in shares and options

24,872,500 ordinary shares in Technology
One Limited held beneficially through
JL Mactaggart Holdings Pty Ltd. 30,000
ordinary shares in Technology One Limited
held via the Jontra trust.

Mr Mactaggart’s experience spans
industries such as agriculture, agri-tech,
manufacturing and software.
He co-founded the Australian Association
of Angel Investors Limited, is a co-founder
of Brisbane Angels and was the Australian
representative of the World Business
Angels Association. Mr Mactaggart played
an integral role in the creation, funding,
and development of TechnologyOne and
remains a major shareholder. John has
been a Fellow of the Australian Institute of
Company Directors since 1991.

Making life simple for our communityDirectors’ Report

his investments, Mr Anstey has added
value wherever appropriate to maximise
shareholder value and has also been
actively involved in the trade sale of
seven companies to organisations in the
US, Europe and Australia.

Mr Anstey is a Fellow of the Australian
Institute of Company Directors.

Mr Anstey now continues his career in
venture capital and corporate advisory
roles as a founder of iQ360 Pty Ltd.

Interests in shares and options
20,000 ordinary shares in Technology
One Limited held beneficially through the
Anstey super fund.

Richard
Anstey

FAICD, FAIM
Appointed 2 December 2005.

Experience and expertise
Mr Anstey’s career has spanned over
40 years. His first company, Tangent
Group Pty Ltd, established a strong
reputation for the development of
software products and strategic
management consultancy for the
banking and finance sector.

With the sale of Tangent, he then
co-founded lnQbator/iQFunds in 2000,
an early-stage investment group focused
upon the technology, telecommunications
and life sciences sectors.

Through iQFunds and personally,
Mr Anstey has co-invested in more
than 30 companies with the support of
Commonwealth Government programs,
Venture Capital Funds and both corporate
and personal investors. While being an
active Non-Executive Director of

Dr Jane
Andrews

GAICD, PhD
Appointed 22 February 2016.

Experience and expertise

Special responsibilities

Dr Andrews joined the Board in
2016, bringing more than 15 years
leadership experience in research
and innovation-based organisations.

Chair of the Remuneration Committee,
member of the Audit and Risk
Committee and the Nomination
and Governance Committee.

Interests in shares and options

30,600 ordinary shares held in
Technology One Limited.

As a founder and investor in
numerous innovative companies,
Dr Andrews has extensive experience
in corporate strategy, entrepreneurship,
commercialisation, innovation, research
and development.

Dr Andrews is a Graduate of the
Australian Institute of Company Directors,
holds a PhD in Life Sciences, a Bachelor
of Science (First Class Honours) and a
Graduate Diploma in Applied Finance and
Investment.

TechnologyOne Annual Report 2023Sharon
Doyle

B Laws (Hons), B IT (Dist), G Dip Bus Admin, FAICD
Appointed 28 February 2018.

Experience and expertise

Ms Doyle is the Executive Chair and
majority owner of corporate advisory
firm, InterFinancial Corporate Finance
Limited. She has successfully navigated
technology companies through the
challenges of steep global growth curves,
with a strong understanding of the
dynamics in Software as a Service (SaaS).

Ms Doyle’s leadership of InterFinancial
has seen her develop a core practice
providing strategic advice for technology
and other IP-rich, high-growth companies.
She also has extensive international
experience managing merger, acquisition
and private equity processes across
the technology industry. Ms Doyle was
previously Vice President at Mincom, one
of Australia’s most successful enterprise
software companies.

Ms Doyle is a Non-Executive Director at
Auto & General. She holds a Bachelor of
Laws (Hons) and Bachelor of Information
Technology (Dist.) from the Queensland
University of Technology, as well as
a Graduate Diploma of Business
Administration from the University of
Queensland. She is a Fellow of the
Australian Institute of Company Directors.

Special responsibilities

Member of the Audit and Risk Committee
and the Nomination and Governance
Committee.

Interests in shares and options

18,280 ordinary shares in Technology
One Limited.

Clifford
Rosenberg

B Bus Sc (Hons), M Sc (Hons)
Appointed 27 February 2019.

Experience and expertise

Mr Rosenberg has more than 25 years’
experience leading change and innovation
in technology and media companies.
As the former Managing Director of
LinkedIn for Australia, NZ and South-East
Asia, Mr. Rosenberg started the Australian
office in 2009 and oversaw the expansion
of LinkedIn in Australia from 1 million
members in 2009 to more than 8 million
members in 2017. Previously, he was
Managing Director at Yahoo! Australia and
New Zealand, and prior to that role he
was the founder and Managing Director
of iTouch Australia NZ where he grew the
Australian office to one of the largest
mobile content and application providers
in Australia.

Mr Rosenberg has more than ten years’
experience on the boards of publicly listed

companies. His directorships include A2B
Australia Limited and Bidcorp.
Cliff was also a Non-Executive Director
with Nearmap which was sold and delisted
in December 2022 as well as Afterpay,
which was acquired in January 2022. He
holds a Bachelor of Business Science
(Hons) from the University of Cape Town
and a Masters of Science (Hons) from the
Universitat Ben Gurion Ba-Negev.

Special responsibilities

Chair of the Nomination and Governance
Committee and member of the
Remuneration Committee.

Interests in shares and options

27,533 ordinary shares held in Technology
One Limited held beneficially through Clifro
Pty Ltd ATF Cliffro Trust.

Making life simple for our communityPeter
Ball

B Bus, CA
Appointed 2 March 2020.

Experience and expertise
Mr Ball is a Chartered Accountant
who has enjoyed a long career in the
professional services sector spanning
nearly 40 years, initially in audit both
nationally and internationally, with the last
30 years in management consulting.
Mr Ball was a Partner with KPMG for
25 years providing a range of professional
services and advice to both public and
private sector organisations. He has also
held senior roles with KPMG including
the national leader of KPMG's Strategic
Planning and Economic Development
service line and more recently as national
partner responsible for the finance
and operations for KPMG's Government
Advisory Practice.

Most of Mr Ball's work involves providing
strategic, economic, commercial and
business improvement advice to enable
organisations to make fully informed
business decisions.

During his management consulting career
Mr Ball has worked across a number of
industries including tourism and leisure,
gaming and wagering, arts and sports,
and state and local governments.

Mr Ball has an entrepreneurial spirit
and has been involved with a number
of start-ups across a range of sectors
including property, education, gaming
and the pharmaceutical sector. He is also
actively involved in the community/not
for profit sector having been a Director of
Alzheimer's Queensland for over 10 years.

Special responsibilities

Chair of the Audit & Risk Committee and
member of the Remuneration Committee.

Interests in shares and options

21,900 ordinary shares held in Technology
One Limited held beneficially through the
Noosa Hill Super Fund.

Ron
McLean

Appointed 8 December 1999.
Retired on 22 February 2023.

Experience and expertise

Mr McLean has more than 40 years’
experience in the enterprise software
industry including holding Senior
Executive and Managing Director roles
in several international and Australian
software companies.

Mr McLean joined the Board as a
Non-Executive Director in 1992. He was
appointed as the General Manager in
1994, Chief Operating Officer in 1999 and
was promoted to Chief Executive Officer
of Operations in 2003.

His involvement in the enterprise
software industry has included leading
and managing software development,
consulting and sales and marketing teams.

Mr McLean retired from this role at
TechnologyOne on 15 July 2004
and retired as Non-Executive Director
on 22 February 2023.

TechnologyOne Annual Report 2023Company Secretary

Stephen
Kennedy

B Bus, FGIA
Appointed 13 April 2017.

Mr Kennedy was appointed Company
Secretary on 13 April 2017 and has been
employed with TechnologyOne since
January 2017.

Meetings of Directors
The numbers of meetings of the Company's Board of Directors
and of each Board Committee held during the year ended
30 September 2023, and the numbers of meetings attended by
each Director were:

Full meetings
of Directors
(Board)

Meetings of committees

Audit
& Risk

Nomination Remuneration

R McLean1

J Mactaggart

R Anstey

J Andrews

S Doyle

C Rosenberg

P Ball2

P O’Sullivan

E Chung3

4(5)

12(13)

10(13)

0(0)

2(3)

1(3)

1 Ron McLean retired on 22 February 2023.

2 Edward Chung was appointed Managing Director on 15 August 2023.

3 Peter Ball was on leave without Internet access for a period of 4 days during which

time 2 unscheduled Board meetings were held.

Where a Director did not attend all meetings of the Board or
relevant committee, the number of meetings for which the Director
was eligible to attend is shown in brackets. In sections where there is
a dash, the Director was not a member of that committee.

Principal activities
The principal activity of Technology One Limited (the Company)
during the financial year was the development, marketing,
sales, implementation and support of fully integrated enterprise
business software solutions, including:

•

Technology One Business Analytics

Technology One Corporate Performance Management

Technology One DXP Local Government

Technology One Enterprise Asset Management

Technology One Enterprise Budgeting

Technology One Enterprise Cash Receipting

Technology One Enterprise Content Management

Technology One Financials

Technology One Human Resource and Payroll

Technology One Performance Planning

Technology One Property and Rating

Technology One Spatial

Technology One Strategic Asset Management

Technology One Student Management

Technology One Supply Chain Management

Technology One Timetabling and Scheduling

Making life simple for our communityDividends
Dividends paid to members during the financial year were as follows:

Ordinary shares

Final dividend for the year ended 30 September
2022 of 10.82 Cents (2021: 10.09 Cents) per fully
paid share paid in December 2022
(2021 - December 2021)

2023
($’000)

2022
($’000)

60% franked (2021: 60%) based on tax paid at 30%

35,119

32,454

Special dividend for the year ended 30 September
2022 of 2 Cents (2021: nil) per fully paid share paid
in December 2022

Strong balance sheet and Strong cashflow generation at
102% of NPAT – We returned cashflow generation to NPAT ratio
of approximately 100%, one year earlier than planned. With
significant cash and investment holdings of $223.3 million and
no debt, our balance sheet retains flexibility and strength for
inorganic growth in the future.

These points are discussed later in more detail.

•

Profit Before Tax of $129.9m, up 16%, beating guidance of
10%-15% growth.

Profit After Tax of $102.9m, up 16%, beating guidance of
10%-15% growth.

•

Total Annual Recurring Revenue (ARR)1 of $392.9m, up 23%.

60% franked (2021: nil) based on tax paid at 30%

6,491

• Net Revenue Retention (NRR) of 119%. Above our long-term

Interim dividend for the year ended 30 September
2023 of 4.62 Cents (2022: 4.2 Cents) per fully paid
share paid in June 2023 (2022: June 2022)

target of 115%.

•

Total Revenue2 of $441.4m, up 19%.

• Revenue from our SaaS and Recurring Business of $390.7m,

60% franked (2022: 60%) based on tax paid at 30%

14,995

13,673

up 22%.

Total dividends paid

56,605

46,127

Review of operations
On behalf of Technology One Limited (TechnologyOne) we are
pleased to announce our fourteenth consecutive year of record
profit, record revenues, and record SaaS fees. Our Global SaaS
ERP solution is making life simple for our community.

Continuing strong performance

TechnologyOne has consistently delivered strong results since
listing on the ASX in 1999. Our ability to deliver these results for
20+ years is due to our clear vision, strategy, culture and our
ongoing investment in R&D, which has been validated in March as
we entered the ASX 100 index.

Highlights for the Year

Profit before tax, up 16% – Beating guidance set in May 2023 of
10%-15% profit growth.

Total Annual Recurring Revenue (ARR) up 23% – Driven by the
significant value proposition of our global SaaS ERP solution.

Net Revenue Retention (NRR) of 119%, up from 116% pcp – Existing
customers continue to expand their use of our global SaaS ERP
solution to streamline their operations.

UK ARR up 52% – Our long-term investment in the UK continues to
build momentum.

Upgrade to medium‑term guidance: now on track to surpass
$500 million ARR by FY25 – One year earlier than planned.

Investing in the future – With strong results and a strong sales
pipeline, this year we made additional investments to enable
us to continue to double in size every five years beyond $500
million ARR. These include additional investments in the UK, new
products and modules, including DXP, AppBuilder, and SaaS
Plus. Additionally, we undertook acquisition due diligence on a
potentially transformational combination opportunity.

We became the world’s first Solution as a Service (SaaS+)
ERP company – We established our visionary SaaS+ offering
by combining our mission-critical global SaaS ERP solution
and implementation in one single fee, removing the need
for traditional, complex, long, risky and expensive consulting
implementations to provide faster go-lives and therefore
unlocking value for our customers more quickly.

•

Expenses of $311.5m, up 21%3.

• Cash Flow Generation4 of $104.6m, up 36%.

• Cash and Investments of $223.3m, up 27%.

•

Total Dividend of 19.52cps, including a special dividend of
3.0cps, up 15%.

• R&D investment of $112.0m before capitalisation, up 21%,

which is 25% of revenue.

ARR represents future contracted annual revenue at year end. This is a non-IFRS
financial measure and is unaudited.

Includes other income of $12.0m, driven by the contingent consideration reversal
for Scientia of $7.4m

Includes $5.9m for the derecognition of certain Scientia intangible assets. Also
impacted by acquisition due diligence expenses and investments brought forward.

Cash Flow Generation is cash flow from operating activities less capitalised
development costs, capitalised commission costs and lease payments. This is a
non-IFRS financial measure and is unaudited. Expected to approximate NPAT.

Results Summary

Total ARR up 23%

Adoption of the TechnologyOne global SaaS ERP solution
exceeded our expectations, with customer adoption driving
Total ARR to $392.9 million, up 23%.

TechnologyOne continues to lead in the Local Government sector,
where we closed over 25 major deals in FY23 totalling more than
$113 million in contract value. Consequently, more than 300 council
customers now benefit from our high-quality products in APAC. We
continue to win clients from our larger competitors, including
the City of Parramatta’s digital transformation project, one of
several excellent wins from Infor, and, another returning customer
from Oracle. These Local Government customers are just a few
examples of councils choosing our market-leading ERP, CiA, with
the digital customer at its centre.

In the Government sector we signed five major deals with a
total contract value of more than $23 million. TechnologyOne
successfully completed the transition of our existing 230+
Government customers to SaaS. The new customers we
signed validated our SaaS-for-Government vision, with the
most notable being the Department of Veteran’s Affairs (DVA),
which was awarded to TechnologyOne at the conclusion
of a competitive tender process against SAP. DVA, a large
agency, chose TechnologyOne for the first stage of its digital
transformation based on our proven ability to deliver within the
Federal Government. Equally, the Commonwealth’s National
Anti-Corruption Commission, with less than 200 staff, knows
they will get the same enterprise grade, built-for-Government
configuration, and industry-leading cyber security standards as
our largest Government customers.

TechnologyOne Annual Report 2023We have successfully completed our transition from an
on-premise legacy licence business to a SaaS business.
Our plan to reduce on-premise legacy licence fees from a high
of circa $75 million to zero over five years is complete. We have
aggressively grown our SaaS recurring revenue business to
replace that revenue, delivering increasing earnings every year.

This transition was extremely complex as we re-engineered all
parts of our business including our products, our structure, our
policies, processes, and disciplines. No other ERP company in the
world has successfully made this transition without negatively
impacting either it's work or its profit growth.

TechnologyOne made the transition to our SaaS solution for our
on-premise customers simple and seamless. Customers can move
to SaaS in weeks, not years, in stark contrast to those using our
competitors’ products.

From their first step to SaaS, our customers can easily move to
our next generation SaaS ERP, CiA, and take advantage of new
technologies, such as Artificial Intelligence and our new Digital
Experience Platform (DXP).

Net Revenue Retention (NRR) of 119%, up from 116% pcp

In FY23, we delivered Net Revenue Retention of 119% which is
industry leading in the ERP market and above our long-term
target of 115%. At 115% per annum, we will continue to double in
size every five years.

This clearly shows our products and solutions are resonating with
the market. Customers are continuing to take up more products
and modules from us as they embrace our enterprise vision and
the significant efficiencies and productivity lift that come with it.

Our focus is to land a customer with products such as Financials,
Property and Rating, or Student Management and then expand
with other products and modules over time. As the only true SaaS
ERP vendor in the market, our SaaS customers have all products
and modules available at all times and are always on the latest
software release. This open licence approach removes the friction
from TechnologyOne selling and from our customers taking up
new products and modules to streamline their business.

We continue to invest in our products and modules to provide even
deeper mission-critical functionality for the markets we serve. In
doing so we increase the available whitespace and runway for our
team to sell additional value to our existing customers.

Our SaaS customers continue to take-up products and modules
at a faster rate than we had seen for our on-premise customers.
The average ARR from our customers has grown from $100,000 in
FY12 to almost $400,000 in FY23.

UK ARR of $26.5 million up 52%

We have seen our UK business continue to grow, with ARR up
52% to $26.5 million. We delivered profit of $3.7 million, up from a
profit $2.4 million last year, and we see significant opportunities
in the coming years in this market which exceeds the size of the
APAC market considerably.

The regionalisation of our OneEducation solution is now complete
for our Student Management and Human Resources and Payroll
(HRP) products and we signed two new Student Management
deals this year in the UK. Our ERP offering and the breadth
and depth of functionality that we bring to the Local Government
and Higher Education markets are unique in the UK and our
pipeline is growing strongly. We continue to invest in products,
sales, marketing and all other functionality in the UK to further
accelerate our growth.

Upgrade to medium‑term guidance, on track to surpass
$500 million ARR by FY25

The quality of the revenue from our latest generation global SaaS
ERP business is exceptionally high, given its recurring contractual
nature, combined with our industry leading low churn rate of ~1%.

Our ARR stands at 90% of Total Revenue1 which means most of our
revenue is locked-in at the start of the financial year. This positions
us well to achieve strong continuing growth in the new year.

Today, our Total ARR is $392.2 million, up 23%. We are upgrading
our medium-term target to surpass $500 million ARR by FY25
(previously, “we will surpass $500 million ARR by FY26”).

1 Excludes traditional consulting revenue as it flows from business wins, and the Scientia

contingent consideration reversal.

Investing in the future
TechnologyOne invested $112 million in R&D this year, up 21%.
Our R&D program continues to be at the leading edge of our
industry, as we embrace new technologies, new concepts
and new paradigms.

Our R&D team is focused on extending the functionality
and capabilities of our global SaaS ERP solution, CiA, which
increases the whitespace in the verticals we serve.

We continue to invest in new, exciting ideas and innovations,
including Solution as a Service (SaaS+), AppBuilder and Digital
Experience Platform (DXP) for Local Government and Higher
Education. Our 16th product, DXP LG, was released for general
adoption and extends our ERP from traditional back-office users
to residents.

Making life simple for our communityWe became the world’s first Solution as a Service
(SaaS+) ERP company

Solution as a Service (SaaS+) will be a game changer in the
ERP industry. It is the next logical evolution of SaaS where
TechnologyOne delivers the entire outcome faster, with little
risk and in one single annual fee to our customers. SaaS+ will
deliver faster time to value as we continue to dramatically
drive down implementation timeframes, removing the need for
traditional long-drawn-out, risky implementations. Through the
“Power of One”, TechnologyOne is the only SaaS ERP provider
able to deliver on this compelling proposition as we own all
parts of the value chain with deep mission-critical products,
industry-specific IP built over 36 years and our highly skilled
in-house consulting team.

During FY23 TechnologyOne launched our new SaaS+ offering,
which was embraced by 34 customers across all our industry
verticals, surpassing all our initial expectations and demonstrating
a very positive outlook for our future approach to sales and
delivery. Queensland Parliamentary Services was the first
government example, recognising how crucial time to value
is for government agencies in times of economic and budget
uncertainty. Other notable examples include the London Business
School of Economics in the UK and our first full OneCouncil
solution, inclusive of Property & Rating, at Whitsunday Regional
Council in Australia.

Our SaaS+ proposition is resonating with the market. Our shift
from traditional new project consulting revenue to SaaS+ revenue
will mirror our successful transition from legacy license fees
to SaaS revenue, which is now complete. This strategic move
enhances our focus on high-quality, recurring revenue.

We are excited about the opportunities these investments will
bring to our APAC and UK customers. Importantly, SaaS+ has
become the go-to-market sales approach in the UK.

These investments in R&D and SaaS+, to build our future platforms
for growth, enable our ability to continue to double in size every
five years. We will manage this significant investment within our
total cost base, continuing to balance strong profit growth with
investment for future growth beyond $500 million ARR.

Profit Before Tax margin to return to growth in FY24

As we transitioned to SaaS and continue to build deep pipelines,
our profit and loss has become more predictable. Early in our
second half, we could see with confidence that we were going to
have a strong full year. We have delivered above guidance profit
before tax growth of 16%, strong ARR growth of 23%, NRR of 119%
(above our long-term target of 115%) and cashflow generation to
NPAT of 102% for the year, one year earlier than planned.

Combined with a strong pipeline, this allowed us to make
additional investments in our ambitious R&D program earlier than
planned. These long-term investments, including DXP, AppBuilder,
additional modules and SaaS+, will enable us to grow beyond
$500 million ARR and continue to double in size every five years.
We also invested in the UK and in scaling our service centre in
Malaysia.

In considering future growth opportunities, TechnologyOne
continues to pursue potential deals that will unlock further
value for shareholders and strengthen our product offering.
During the year we made a $2 million investment in due
diligence to put forward a non-binding and indicative proposal
for a public-listed UK-based higher education software provider.
Following significant and disciplined due diligence, we did
not proceed as the potential acquisition did not meet our set
criteria and the prudent decision was made not to proceed.
TechnologyOne remains in a strong position to explore other
appropriate M&A opportunities in the near and medium term
given the company’s strong balance sheet.

These planned additional investments resulted in a flat
underlying profit before tax margin of 30%. We expect margin
growth to return in FY24, and we see Group margins continuing
to improve to 35% in the coming years, driven by the significant
economies of scale from our single instance multi-tenanted
global SaaS ERP solution.

Investment in people and culture

Our people solve incredibly complex business problems for our
customers and have delivered our massively broad and deep
global SaaS ERP solution. We compete and win against the
world’s largest multinational software companies, which have
R&D teams with tens of thousands of staff.

We have set an ambitious target Employee Net Promoter Score
(eNPS) of +50 by FY26. Our eNPS score increased to +34 driven
by new and exciting people programs and initiatives delivered
in FY23.

Since inception, we have been extremely successful, by any
measure, because of our consistent strategy, mission, purpose,
core beliefs, values, leadership philosophies and compelling
customer experience. During the year, we refined and simplified
our core beliefs and compelling customer experience philosophies
and relaunched them to our team through our Culture Book,
a collection of stories that explain to new starters and remind
long-timers what makes TechnologyOne special and how we
make the impossible, possible. This completes the 24-month
refresh of the TechOne Way, the key artefact that describes the
DNA of our business to our staff.

During the year, we promoted 130 team members across all
areas of our business. We continued our focus on diversity
and strategies to increase the number of women across the
organisation. Women now hold more than 42% of senior roles
against an industry average of 25%. Our overall representation of
women across all roles at TechnologyOne has increased to 38%.

We have also launched Australia’s best Employee Share Plan
which provides one free share for every two shares purchased by
our employees. In the year, 44% of our team members elected to
become owners of TechnologyOne to share in the growth of our
great company.

To continue to double in size every five years, we launched our
ongoing investment in our leaders through our Leadership Summit.
This initiative is designed to grow our leaders, teach them the
TechOne Way and equip them to lead our teams to make the
impossible, possible. The first cohort graduated in FY23 and
cohort two commenced this year.

TechnologyOne Annual Report 2023Social ‑ TechnologyOne Foundation
The TechnologyOne Foundation defines who we are as a
company and is an important driver of our culture and values.

We are committed to making a difference to underprivileged,
disadvantaged, and at-risk youths, by empowering them to
transform their lives and create their own pathways of success.
We believe that it is through youth that we can have the greatest
impact on the future. We have an ambitious goal of lifting
500,000 children and their families out of poverty by FY31, which
we are on track to achieve.

An important part of the TechnologyOne Foundation is
supporting great Australians doing great work, both locally
and internationally, which includes the Fred Hollows Foundation,
School of St Jude, Opportunity International, Solar Buddy
and St James College.

The Foundation will continue to grow with TechnologyOne through
our commitment to the 1% pledge – which includes 1% profit, 1%
product and 1% time. This represents a commitment of more than
$2 million each year. The TechnologyOne Foundation will continue
to shape the DNA of our company and staff.

Governance
Given that TechnologyOne is such a significant R&D
and innovation-led business, coupled with our long track
record of profitable growth, we continue our cautious
and measured approach to the renewal of our Board.

We would like to recognise Ron McLean, who after 31 years of
service firstly as an executive and subsequently a non-executive
director retired from the company on 26 February 2023. Ron was
instrumental in developing the sales team and disciplines and
TechnologyOne culture over his time and left the business in
excellent shape for future growth. We wish him well in his
future endeavours.

Please refer to our TechnologyOne website at:
https://www.technologyonecorp.com/company/investors/
corporate‑governance for our full Sustainability Report
and Corporate Governance Statement.

Strong balance sheet and Strong cashflow generation
at 102% of NPAT

TechnologyOne continues to have a strong balance sheet with
net assets of $306.0 million, up 28% and cash and investments
of $223.3 million, up 27%. Cash Flow Generation (CFG) was once
again strong at $104.6 million for the full year, versus a Net Profit
After Tax of $102.9 million, a CFG to NPAT ratio >100% which is
one year earlier than planned. TechnologyOne continues its
long history of strong CFG, which we expect will continue to
approximate Net Profit After Tax in FY24 and beyond.

Dividend

Considering the company’s strong results, our confidence in the
future, and the significant capacity in our balance sheet to invest
in growth and opportunities that may arise, we have announced
a Special Dividend of 3.0 cents per share in addition to our final
FY23 dividend of 11.90 cents per share.

For the full year, our dividend has increased to 19.52 cents per
share (including the Special Dividend), up 15% on the prior year,
and in line with our Net Profit After Tax growth of 16%.

Executive remuneration

TechnologyOne remains focused on delivering strong growth
and our current remuneration structure positions us well to
continue to achieve this – both in the short and long-term, but
also to ensure alignment across our Executive KMP.

We continued to execute our strategy, delivering strong results
again in FY23. When many businesses have struggled to deliver in
uncertain economic and geopolitical times, TechnologyOne has
delivered exceptional growth – Total ARR growth of 23%, Record
Net Profit After Tax growth of 16%,
and upgraded our medium-term guidance to surpass
$500 million ARR by FY25.

Our 3-year rolling TSR is 97% and annual TSR is 48%.
There is a clear alignment between the performance of the
business and executive remuneration.

Environment, Social, Governance (ESG)

Environment
TechnologyOne is committed to its ESG obligations, beyond just
regulatory requirements. We became Carbon Neutral globally
and this year is our second year benchmarking and reporting
under the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).

While the TechnologyOne operations do not have a material
impact on the environment, we acknowledge that it is the
changing attitude of many that will have a material impact on
reducing climate change.

Making life simple for our communitySignificant changes in the state
of affairs
There were no significant changes in the Company's state of
affairs during the financial year.

Matters subsequent
to the end of the financial year
On 21 November 2023, the Directors of Technology One Limited
declared a final and special dividend on ordinary shares in
respect of the 2023 financial year. The total amount of the
dividend is $48,376,534 and is 60% franked.

No other matter or circumstance has occurred subsequent to
period end that has significantly affected, or may significantly
affect, the operations of the Company, the results of those
operations or the state of affairs of the Company or economic
entity in subsequent financial years.

Likely developments
Refer to the Review of Operations section above.

Indemnification and Insurance
of Officers
Insurance and indemnity arrangements concerning officers of the
Company were renewed or continued during the year ended
30 September 2023.

An indemnity agreement is in place between TechnologyOne
and each of the Directors of the Company named earlier in this
report and with each full-time Executive officer and secretary
of the Company. Under the agreement, the Company has
indemnified those officers against any claim or for any expenses
or costs that may arise due to work performed in their respective
capacities.

TechnologyOne paid an insurance premium in respect of a
contract insuring each of the Directors of the Company named
earlier in this report and each full-time Executive officer and
secretary of the Company, against all liabilities and expenses
arising as a result of work performed in their respective capacities,
to the extent permitted by law.

Non‑audit services
Non-audit services provided by the Company’s auditor,
Ernst & Young, in the current financial period and prior financial
year included taxation advice and other advisory services.
The Directors are satisfied that the provision of non-audit services
is compatible with the general standard of independence for
auditors imposed by the Corporations Act.

2023
($)

2022
($)

Ernst and Young:

Taxation advice and other advisory
services

948,484

197,241

Total remuneration

948,484

197,241

Non-audit services include $301,734 in relation to taxation advice
and $646,750 in relation to acquisition due diligence services for
an acquisition target that the Company did not ultimately pursue.

Auditor’s independence declaration
A copy of the auditor's independence declaration as required
under section 307C of the Corporations Act 2001 is set out on
page 84.

Rounding of amounts
The Company is of a kind referred to in Instrument 2016/191,
issued by the Australian Securities and Investments Commission,
relating to the 'rounding off' of amounts in the Directors' report
and financial report. Amounts in the Directors' report and financial
report have been rounded off in accordance with that Class
Order to the nearest thousand dollars, or in certain cases, to the
nearest dollar.

Environmental regulation
TechnologyOne has assessed the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD).
The outcome of the assessment is discussed in the section below.

TechnologyOne’s Climate change position

Our operations do not have a material impact on the
environment. We acknowledge that climate change mitigation
will require deep and permanent greenhouse gas reductions as
part of a universal transformation from business, government,
and individuals collectively. To this end, TechnologyOne accepts
the science of climate change and is committed to reducing our
carbon emissions to the lowest amount possible and offsetting
residual amounts to maintain carbon neutrality.

TechnologyOne has adopted an iterative approach to
implementing the TCFD recommendations.

We will continue to assess how we quantify climate-related risks
and opportunities, how the Board integrates climate-related
considerations into decision-making and strategy, and how we
engage with shareholders, customers, team members, suppliers
and other key stakeholders.

TechnologyOne Annual Report 2023Share options

Unissued shares

As at the date of this report, there were 5,909,979 unissued
ordinary shares under options (4,752,991 at the reporting date).
Refer to note 32 for further details of the options outstanding.

Option holders do not have any right, by virtue of the option, to
participate in any share issue of the company. Options granted
carry no dividend right to holders.

Shares issued on the exercise of options

During the year, employees and Executives have exercised
options to acquire 1,303,806 fully paid ordinary shares in
Technology One Limited at a weighted average exercise price of
$6.24. Refer to note 32 for further details of the options exercised
during the year.

Corporate governance statement
The most recent Corporate Governance Statement can be
located at the Group’s Website (www.technologyonecorp.com).

This report is made in accordance with a resolution of Directors.

Pat O’Sullivan
Chair

Brisbane
21 November 2023

Climate Governance

The TechnologyOne Board maintains oversight of sustainability
matters, translating these into our strategy for long-term value.
TechnologyOne’s broader focus on environmental, social
and governance factors (ESG) is overseen by the Nomination
& Governance Committee. The responsibility for implementing
ESG sits with each internal Business Division.

Our Risk Management Framework, the Audit & Risk Committee
oversees TechnologyOne’s material enterprise-wide risks and
the integrity of our statutory statements. The Remuneration
Committee considers executive performance on ESG issues.

Climate Strategy

To understand the strategic implications of climate-related
risks and opportunities, we assessed the potential positive
and negative impacts on our business against three global
warming scenarios.

Under the 2°C scenario characterised by late, disruptive
and sudden climate action, our key risks include reputational
and legal risks associated with a lack of climate risk disclosure
and action, as well as financial risks.

Under the 4°C scenario characterised by limited climate action
beyond what has already been committed, key aspects of the
risks relate to physical damage, network disruptions, missed sales
opportunities and health impacts on our staff.

Climate Risk Management

We aim to ensure that our risk management process is dynamic
and that emerging and existing material climate related risks
are identified, managed, and incorporated into our existing risk
management processes.

Our GHG reduction strategy involves three phases:

Phase 1: Phase 1: measure (understand the key emission sources)

Phase 2: Phase 2: manage and minimise (reduce energy
consumption and associated carbon emissions
where practicable)

Phase 3: Phase 3: offset (all or a proportion of our

carbon emissions).

Climate Metrics and Targets

During the reporting period, TechnologyOne conducted a GHG
assessment in accordance with the GHG Protocol: A Corporate
Accounting and Reporting Standard and Corporate Value Chain.

TechnologyOne’s total global emissions for FY23 amounted to
8,465 tonnes of carbon dioxide equivalent.

We aim to use any arising opportunities to reduce our emissions.
We’re focused on reducing our impact on the environment and
are proud to be Climate Active carbon-neutral certified for
our global operations. Reflective of the increased urgency to
accelerate carbon reduction initiatives, we recently set reduction
targets to reduce our Scope 1 and 2 global emissions by 80% by
2025 and 100% by 2030 from a FY22 baseline.

Refer to our 2023 Sustainability Report for further TCFD
related information.

Making life simple for our communityIndependent Auditor's Declaration

Introduction from the Chair of the
Remuneration Committee

Dear Shareholders,

On behalf of TechnologyOne’s Remuneration Committee
(the Committee), I am pleased to present our Remuneration Report
(the Report) for the year ended 30 September 2023.

The primary objective of the Committee is to ensure that we
align Executive Key Management Personnel (KMP) rewards with
shareholder interests and achievement of our business strategy,
whilst ensuring that we attract and retain exceptional Executives,
Directors and Employees who are collectively responsible for
delivering long-term profitable growth and sustainable shareholder
returns.

We are one of only a few ERP vendors globally. Our unique
approach sees us highly focused on six vertical markets with the
deepest functionality for those markets, delivered through our
16 products and over 400 modules. This includes mission-critical
operational systems for local government and higher education.
We have rewritten our rich ERP four times over the last 36 years,
taking advantage of the latest technological shifts for our
customers – relational database, PC, web and now SaaS.

Our Power of One approach, core to our strategy, means we build,
market, sell, implement, support, and run our ERP for our customers.
TechnologyOne’s products make life simple for our customers, but
our business is complex and unique, demanding deep and broad
expertise from our exceptional team.

Execution of our consistent strategy by our leaders has been key
to our strong growth. We constantly adapt and evolve to changes
in technology, the market and feedback from our customers while
remaining focused on delivery for our verticals.

This year TechnologyOne entered the S&P/ASX 100 index. This
is an important milestone for the company, which commenced
in 1987 as a small start-up venture operating from a hide
plant in Hemmant, Brisbane. Since listing on the ASX in 1999,
TechnologyOne has delivered more than 18% compound growth
for our shareholders, turning $1 invested 24 years ago into more
than $50. With dividends reinvested, over the last 10 years,
TechnologyOne's Total Shareholder Return (TSR) has exceeded
the ASX 200 by more than 6 times-more than 860%. The growth
has been delivered via execution of our strategy which aims to
double our ARR every five years. Pleasingly, through this same
period, our employee Net Promoter Score has grown from +1 to
+34, and we are on track to deliver our ambitious goal of $500m
Annual Recurring Revenue (ARR) by FY25, earlier than planned. As
we move into this next period, we have set our focus on doubling
from $500m to $1bn ARR by FY30.

Our remuneration framework provides a tight relationship between
performance and remuneration and has driven strong growth for the
company. In FY23, we undertook independent benchmarking for KMP
remuneration. We will continue to benchmark to ensure we remain
competitive and can attract and retain talented executives with the
specialised skills and expertise required.

This Report intends to describe the linkage between our strategic
initiatives, remuneration principles and remuneration framework,
and how these, in turn, drive shareholder returns.

Incentive outcomes and alignment to
Company performance

Company performance was strong with exceptional results
delivered in FY23 across all key metrics:

•

Total ARR growth of 23%.

• Net profit before tax growth of 16%.

• UK profit up 54% at $3.7m.

These results indicate we are on track to deliver our ambitious
goal of $500m ARR by FY25, earlier than planned.

Continuing Executive KMP remuneration continues to be clearly
aligned with shareholder value creation:

•

Total continuing Executive KMP remuneration grew by 5%
between 2022 and 2023 (excluding retention LTI). Remuneration
growth is relative to, and less than, the Company’s 16% growth
in statutory net profit before tax (NPBT).

Short-Term Incentive (STI) outcomes across our continuing
Executive KMP were up 15% directly reflecting 15% growth in
Executive NPBT.

• Deferred STI earned was up 16% in line with average growth in

Executive NPBT over the last three years.

•

The Long-Term Incentive (LTI) plan, based on earnings per
share (EPS) growth and total shareholder return (TSR) relative to
technology companies, resulted in 100% of ‘at risk’ LTI vesting
for our Continuing Executive KMP. This result reflects the strong
performance over the 3-year vesting period, with challenging
LTI targets set by the Board achieved, ensuring superior
performance and long-term shareholder wealth creation.

Executive and Director changes
Mr Edward Chung, our CEO for the past 6 years was appointed to
the Board as Managing Director on 15 August 2023. Mr Paul Jobbins
resigned as CFO and company secretary on 17 July 2023. Mr Cale
Bennett commenced as CFO on 1 August 2023.

Mr Ron McLean retired from the Board at the end of the 2023 AGM
on 22 February 2023.

(a) Executive KMP remuneration

There has been no change to the continuing Executive KMP
remuneration framework. Fixed base salary increases were
limited to 1.5%, including the super guarantee rate increase.
Actual short-term incentive and deferred STI increased in line with
Executive Net Profit Before Tax (NPBT). Long-term incentives were
increased by 1%, as the opportunity as a percentage of salary
remained unchanged. Increases in salary and LTI were less than
inflation. For FY23, Fixed remuneration comprised no more than 29%
of Executive KMP remuneration.

(b) Directors’ fees
Shareholders resolved to increase the fee pool to $2,000,000 at
the FY22 Annual General Meeting. The increase is the first increase
since the Director Fee Pool was set at $1,500,000 four years earlier.
The increased pool resulted from independent benchmarking,
Board renewal, including an experienced non-executive Chair,
and recognition of the increased workload and management of
complexity and growth for the non-executive Chair and Directors.
Further details are described in section 7 of the Report.

Afterword

TechnologyOne remains focused on delivering sustainable
long-term growth. We believe that our remuneration policies
continue to position us well for providing our shareholders with
strong returns via effective executive attraction, retention
and focus on performance.

Dr Jane Andrews
Chair, Remuneration Committee
Brisbane
21 November 2023

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Contents
The remuneration report contains the following sections.

1 About this report

2 Remuneration governance

3 Executive Remuneration at TechnologyOne - strategy, principles, and target mix

4 How Executive Remuneration is structured

5 Relationship between remuneration and Company performance

6 Service agreements for the Executive KMP

7 Non-executive Director fees

8 Statutory Remuneration

9 Additional statutory disclosures

10 Key questions

102

104

105

108

TechnologyOne Annual Report 20231
1.1

About this report
Basis for preparation of FY23 Remuneration Report

The information in this Remuneration Report has been prepared based on the requirements of the Corporations Act 2001 and applicable
Accounting Standards.

The Remuneration Report is designed to provide shareholders with a clear and detailed understanding of TechnologyOne’s remuneration
framework, and the link between our remuneration policies and Company performance.

The Remuneration Report details the remuneration framework for TechnologyOne’s Key Management Personnel (KMP). For the purpose
of this report, KMP are defined as those persons having authority and responsibility for planning, directing and controlling the major
activities of TechnologyOne, directly or indirectly, including any Director (whether Executive or otherwise).

This report has been audited.

1.2

People covered by the Remuneration Report

The Remuneration Report discloses the remuneration arrangements and outcomes for those individuals who we have determined to meet the
definition of KMP under AASB 124 Related Party Disclosures. The below table identifies each KMP, their position and term as KMP.

Name

Position

NON‑EXECUTIVE DIRECTORS

Pat O’Sullivan

Ron McLean

Independent Non-Executive Chair

Independent Director

John Mactaggart

Non-independent Director

Major shareholder

Richard Anstey

Independent Director

Dr Jane Andrews

Independent Director

Remuneration Committee Chair

Audit and Risk Committee

Nomination and Governance Committee

Sharon Doyle

Independent Director

Audit and Risk Committee

Nomination and Governance Committee

Clifford Rosenberg

Independent Director

Nomination and Governance Committee Chair

Remuneration Committee

Peter Ball

Independent Director

Audit and Risk Committee Chair

Remuneration Committee

EXECUTIVE DIRECTORS

Edward Chung

Managing Director and Chief Executive Officer

EXECUTIVE KMP

Stuart MacDonald

Chief Operating Officer

Paul Jobbins

Chief Financial Officer

Cale Bennett

Chief Financial Officer

Period

Full year

1 October 2022 –
22 February 2023

Full year

Full year
(Managing
Director from 15
August 2023)

Full year

1 October 2022 –
17 July 2023

1 August – 30
September 2023

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2 Remuneration governance
The Remuneration Committee (the Committee) is responsible for
developing the remuneration framework for TechnologyOne KMPs
and making recommendations for KMP’s remuneration to the
Board. The Committee sets the remuneration philosophy
and policies for Board approval.

The responsibilities of the Committee are further outlined in their
Charter, which is reviewed annually by the Board.

The key responsibilities of the Committee include:

• Advising the Board on TechnologyOne’s policy for

KMP’s remuneration.

• Making recommendations to the Board on the remuneration

arrangements for KMP to ensure they are aligned with
TechnologyOne’s vision and are set competitively to the
market.

• Approving KMP terms of employment.

In making recommendations to the Board, the Committee reviews
the appropriateness of the nature and amount of remuneration to
KMP on an annual basis.

Prior to the award or vesting of any deferred remuneration
including deferred Short-Term Incentives (STI) and Long-Term
Incentives (LTI), the Committee considers whether there are any
irregularities or other factors (including ESG matters) that would
affect the payment or vesting of that award. This is a formal
agenda item for the Remuneration Committee and it is conducted
without the executives present.

Executive Remuneration at
TechnologyOne ‑ strategy,
principles, and target mix
Our remuneration strategy and principles

3.1
At TechnologyOne, our remuneration strategy is aligned with
our vision of “making life simple for our community”. The Board
believes that in order to deliver on our vision and build sustainable
long-term shareholder growth, TechnologyOne must have a
remuneration framework that allows it to compete for talent both
locally and globally in a highly competitive and fast-moving
environment, and against companies such as Oracle, SAP
and Workday, as well as other Australian and global software
companies.

The remuneration principles that underpin our remuneration
strategy and framework are to:

• Attract, retain and motivate skilled Directors and Executives in

•

leadership positions.
Provide remuneration which is appropriate and competitive
both internally and against comparable companies (our
peers).

• Align Executives’ financial rewards with shareholder interests

and our business strategy.

• Achieve outstanding shareholder wealth creation.
• Articulate clearly to Executives the direct link between

individual and Company performance, and individual financial
reward.

• Reward superior performance, while managing risks.
•

Provide flexibility to meet changing needs and emerging
competitive market practices.

• Commit to diversity, reflecting a fair and equitable

remuneration framework.

• Commit to simplicity.

Our Executive remuneration framework aligns with common
practices for ASX 100 companies, with adaptations to meet
the demands of a growing company in the enterprise software
market. The structure of our Executive remuneration comprises:

• Comparatively low fixed remuneration to enable a greater

emphasis on performance.

• Relatively large at-risk STI portion aligning focus to current

year performance.

• A deferred STI component to help further drive long-term

shareholder wealth and retention.

•

LTIs linked to long-term strategy, targets, and shareholder
wealth creation.

Due to the nature of our SaaS revenue generation, the winning
of new business and driving continued profit growth in the
current year is the key to our long-term success. It is for this
reason, our short-term incentive (STI), as a percentage of the
total remuneration, tends to be higher than our ASX-listed peers.
Correspondingly, the fixed remuneration for our Executives
is comparatively low compared to our ASX-listed peers. The
significant weighting towards the STI encourages our Executives to
drive new business and financial performance in the current year,
which creates Annual Recurring Revenue (ARR)1 for future years,
therefore securing long-term success and shareholder wealth.

1 ARR is not an IFRS measure and is unaudited, it represents future contracted annual revenue at year end.

TechnologyOne Annual Report 2023TechnologyOne Executives are focused on, and rewarded for, the long-term outcomes of the business through the Deferred STI and a
generally larger LTI proportion of remuneration than our ASX-listed peers.

The talent pool in Australia for Executives with large-scale enterprise software companies is highly competitive. Therefore, it is
important to ensure that our remuneration framework is appropriately structured for the enterprise software market. We believe that
our remuneration structure offers the necessary flexibility and incentive to ensure that we attract and retain talented Executives who
understand the industry and, in turn, drive shareholder value.

Target remuneration mix

Target granted remuneration mix at the beginning of the contract for the CEO (Figure 1), and other Executive KMP (Figure 3) is
represented below, based on target STI achievement and maximum LTI achievement. Over time, the remuneration changes due to a
larger increase in STI relative to other remuneration components.
The below represents the target contract remuneration mix for the CEO at the beginning of a contract (Figure 1) and demonstrates how
the remuneration mix changes over time (Figure 2). The below graphs show the accounting expense of the remuneration mix, excluding
the expense related to the one-off retention LTIs granted in FY22.

Figure 1. Target CEO remuneration mix
(contract target started in FY17)

Figure 2. CEO remuneration mix
FY23

At-risk

27%

33%

At-risk

47%

10%

18%

Fixed

33%

Fixed

25%

Fixed

STI-current

Deferred STI

LTI

Fixed

STI-current

Deferred STI

LTI

The below represents the target contracted remuneration mix for other continuing Executive KMP at the beginning of a contract
(Figure 3) and demonstrates how the remuneration mix changes over time (Figure 4).

Figure 3. Target Executive KMP remuneration mix
(contract target started in FY17)

Figure 4. Executive KMP remuneration mix
FY23

At-risk

27%

33%

At-risk

46%

10%

15%

Fixed

33%

Fixed

29%

Fixed

STI-current

Deferred STI

LTI

Fixed

STI-current

Deferred STI

LTI

While the STI is the largest component of remuneration, Deferred STI encourages Executives to have a sustainable long-term mindset
when approaching profit generation. The combination of STI for the current year, and deferred STI and LTI for future years, ensures the
overall variable remuneration is balanced between achieving short-term and long-term outcomes for the business and shareholders.

The growth in STI-current and Deferred STI as a proportion of overall remuneration seen in the graphs above arises due to the STI being
directly linked to profit, which has grown strongly over time. Refer to section 4.2 for more details on the STI-current.

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4 How Executive Remuneration is structured
4.1

Fixed remuneration

Fixed remuneration comprises base salary plus superannuation.

Fixed base salary increased by 1% for FY23. The increase in the Superannuation Guarantee rate was paid for by the company for Executive
KMP, in line with policy for all employees. This resulted in a further increase in fixed remuneration of 0.5% from July 1 2023.

4.2 Short‑term incentive (STI)

Executives participate in an STI plan which is based on Executive NPBT1. Key features of the STI plan are detailed below:

Feature

Opportunity

Description

The value of the STI is based on a percentage of applicable Executive Net Profit Before Tax1. The percentage is
determined at the outset of the Executive’s contract and remains fixed for the contract period for each Executive KMP.
Refer to section 5.2 below for each Executive’s agreed percentage.

STI awarded is uncapped to encourage over-achievement, drive performance in the current year and the creation
of long-term shareholder wealth. Given expected growth in NPBT over time, the longer the Executive stays with
TechnologyOne, the greater the weighting of the STI component of total remuneration in comparison to the fixed and
LTI components, which typically only increase by CPI or less on an annual basis. An illustrative example of how this works
over time in practice has been presented following this table. This effect encourages retention of outperformers by
increasing their earning potential the longer they stay with the Company, which aligns them with shareholders.

Award vehicle

Cash.

Performance measures

The STI is based on a percentage of applicable Executive Net Profit Before Tax1. This effectively aligns the target
incentive with shareholder return since share price has trended with the increase in earnings.

TechnologyOne’s use of STIs differs from most other organisations in that it utilises only one performance measure
in determining STI awards. This is to create focus and clarity for Executives whilst also providing transparency for
shareholders as to how STI awards are determined. The Board and Remuneration Committee continue to monitor STI
performance measures to ensure that they best align with the Company’s commitment to providing shareholder wealth.

As a SaaS company, NPBT is critical to driving long term shareholder wealth. This is because the winning of new
business, drives NPBT growth in the current year. This winning of new business translates to growth in ARR2 in a SaaS
company, which results in contracted returns for the business in the future. Therefore, although the KMP are rewarded
in the Short-Term for increases in profitability, the Company and shareholders continue to reap the benefits of that
increase in profitability for the foreseeable future.

An important element of the success of our STI has been that it is uncapped so the greater the results in the current
financial year, the greater the STI. This not only encourages over performance in the current financial year for the
Company, it also has a dramatic flow on effect in future years through the greater recurring revenues for the Company.
Combined with the LTI, the uncapped STI also helps retain Executives over the long-term because the more they
succeed, the more financial incentive there is to stay with us and continue to work hard to achieve results each
year, and the greater benefit to our shareholders through an ever-increasing recurring revenue base. Market value is
contingent on high and sustained annual growth.

Likewise, if the Company under-performs (e.g. loss of customers) or the results in a year are lower (e.g. impairment),
there is a significant financial impact to Executives as their STI forms a large portion of their total remuneration. Just as
the STI is uncapped on the upside, it is also uncapped on the downside. Given that our Executives' fixed remuneration
is significantly lower than our ASX-listed peers, under-performance has a significant, negative impact on their total
remuneration. This ensures that Executive awards are aligned with shareholder returns.

The STI framework aligns performance with remuneration outcomes encouraging over performance and penalising
under performance.

The ability to apply Malus Provision to Deferred STI exists in the unlikely event that business outcomes differ materially from
expected or if there are any irregularities or other factors that would or have affected the payment of that award.

To mitigate inappropriate actions that could increase short-term incentives, the Company has long-standing effective
controls in place, including internal and external audits, and practice management reviews.

Specific internal controls in place include strict pricing and discounting policies and processes; selling solutions into only six
(6) specific markets reducing risk and complexity; maintaining robust approval processes for any non-standard or high-risk
contractual terms; performing active management of outstanding debtors; and malus provisions for Deferred STIs.

STI cap

Malus

Controls

Termination

On termination, the Executive foregoes any further STI payments which would have otherwise been available for the
remainder of the financial year under their STI plan.

1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STI is deducted.

2 ARR is not an IFRS measure and is unaudited, it represents future contracted annual revenue at year end.

TechnologyOne Annual Report 2023TechnologyOne Executives have an STI set at the start of their contract which is typically 33% of their total targeted remuneration.
As noted above, this percentage of their total remuneration will increase with the Executive’s tenure. The best way to consider the
mechanics of the TechnologyOne STI is by way of the following worked example.

Example 1: STI calculation and model over time

Consider a candidate who can command a remuneration package of $900,000 in the open market. The TechnologyOne STI opportunity
is determined as 1/3 of the total remuneration package and modelled as follows:

STI target

$300,000 is used as the initial STI target. If we assume that NPBT of the Company, applies for this employee and the
forecast NPBT is $100m then contract STI will be 0.30% of NPBT ($300,000/$100m).

STI rate set at 75% to 100% of fixed remuneration (as established during contract negotiations).

Assuming an ambitious profit target increase of 15% per annum and actual profit increases of 12% per annum, the following illustrates the
operation of the STI.

Year

STI
(%)

0.30

Profit
target
($m)

100.00

112.01

125.45

Actual
profit
($m)

97.40

109.09

122.18

STI target
(STI % x profit
target ($))

Actual STI
(STI % x actual
profit ($))

300,000

336,030

376,350

292,200

327,270

366,540

As can be seen in this example, growth is achieved in the STI, in line with growth in company profit. This leads to an increase, over time, of
the proportion of STI to fixed remuneration.

4.3 Deferred STI

Feature

Opportunity

Description

TechnologyOne introduced a Deferred STI in the FY19 year. An additional amount equal to 25% of the annual STI earned
in the year under review is deferred (i.e. 20% of total STI) and paid at the conclusion of the two-year period following the
end of the financial year.

Award vehicle

Cash.

Cap

For the same reasons outlined in section 4.2 for the STI, this Deferred STI is also uncapped on both the upside and the
downside.

Deferral period and service
requirements

The award will only be paid at the conclusion of the two-year period following the end of the financial year, on the
condition that the Executive KMP remains employed with the Company for the entire deferral period.

Malus

Controls

Termination

The Deferred STI component is subject to a malus provision in that there must be no irregularities or other factors that
would have affected the payment of that award.

The controls are in line with those in place for the STI. Refer section 4.2 for detail.

On termination, the Executive forgoes any accrued and Deferred STI.

The following provides a worked example to illustrate the operation of the Deferred STI.

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4 How Executive Remuneration is structured (continued)
4.3 Deferred STI (continued)

Example 2: Amounts recognised for Deferred STI

As can be seen from the table below, the Deferred STI expense is recognised over a three-year period, being the year of award plus the
two years of deferral. The award is paid at the conclusion of the two-year period following the end of the financial year of the award.
A reward granted in FY23 will be paid to the Executive following the conclusion of FY25.

STI
Measure

NPBT

STI
(%)

0.30

Financial
result
($m)

STI‑ received
immediately
($)

Deferred
STI
(%)

Deferred
STI

Year 1

Year 2

Year 3

Year 4

Year 5

Amounts expensed for Deferred STI

97.40

292,200

112.01

336,030

122.18

366,540

84,008

91,635

28,003

30,545

73,050

24,350

Total Expense

24,350

52,353

82,898

58,548

30,545

Cash Received by Executives

73,050

84,008

91,635

4.4

Long‑term incentives (LTI)

TechnologyOne Executives are eligible to participate in an LTI Plan. The LTI Plan is designed to provide participants with the incentive to
deliver substantial consistent growth in shareholder value:

Feature

Opportunity

Award vehicle

Performance period

Description

The value of the total number of LTI options and/or rights issued each year (a grant) to an KMP is typically set at 75% to
100% of fixed remuneration and is determined during contract negotiation when an KMP is hired.

Each LTI entitles the KMP the right to purchase one TechnologyOne share in the future at an agreed strike price, subject to
meeting specified performance targets. The KMP has a choice between Options or Equity Performance Rights (EPRs, rights).

LTIs have a three-year performance period. The number of options and/or rights in the grant are split into tranches
based on the weighting of each performance measure. For performance measures with a three-year target, the relevant
tranche vests at the end of the three-year period in accordance with the vesting schedule provided below.

For accounting purposes, the expense is recognised in accordance with AASB 2 Share Based Payments over the
three-year period.

Performance measures

Performance measures for the most recent LTI grants are:

•

75% of the options / rights vest based on EPS Growth. See Vesting Conditions below.

25% of the options / rights vest based on Relative Total Shareholder Return (rTSR) compared against the
constituents of the ASX All Technology (XTX) index. See Vesting Conditions below.

TechnologyOne Annual Report 2023Feature

Description

Vesting conditions

For each performance target there is a mid and stretch target. Mid hurdles have been calculated so that if they are
achieved, this will create substantial shareholder wealth.

Performance
Metric

Growth <5%

Growth >=5%, <15%

Growth >=15%

EPS growth1

0% vest

50% vest at 5% growth with linear vesting
(50% to 100%) up to 15% growth

100% vest

Performance
Metric

Percentile <50

Percentile >=50, <75

Percentile >=75

Relative TSR2

0% vest

50% vest at 50th percentile relative TSR
with linear vesting (50% to 100%) up to 75th
percentile

100% vest

The number of options / rights that vest at the end of the relevant performance period is determined as follows:

•

Number of LTI options/rights earned per three-year performance period = Number of LTI options/rights granted
x percentage earned x individual performance factor3

Vesting conditions are applicable to KMP only.

1 EPS growth is calculated to 2 decimals places.

2 Relative TSR targets are determined with reference to our peer group. Our peer group is defined as those constituent companies making

up the ASX All Technology Index (XTX). Calculations for the vesting outcomes for relative TSR vesting conditions are prepared by an
independent external company.

3 The individual performance factor is typically 100% unless Malus Provision is applied. It can never exceed 100%.

Allocation methodology

The LTI is allocated based on the fair value of the option or right with no discount for the likelihood of non-market
performance conditions being met.

Board discretion

In situations where the vesting conditions are affected by factors beyond the control of the employee (e.g. global
pandemic, trade restrictions, war, large-scale natural disasters, profit windfalls or unforeseen tailwinds), the Board has
discretion to increase or decrease the number of LTI options and/or rights vesting.

The Board retains sole discretion to determine the amount and form of any award that may vest (if any) to prevent any
unintended outcomes, or in the event of a corporate restructuring or capital event.

Change of control

The Board has discretion to determine the extent to which LTIs vest based on the period elapsed since the start of the
performance period and the performance at the time of any change of control event.

Termination

Expiry

Revision

Malus

Awards lapse unless the Board determines otherwise, in which case it considers performance of the individual over the
relevant period up to the date of termination of employment.

Any LTIs that have vested will expire 5 years after vesting.

We do not revise our LTIs over the relevant performance period.

The LTI component is subject to a Malus Provision in that there must be no irregularities or other factors that would
affect the vesting of the award. Under the Malus Provision the Board has the ability to vary the LTI as appropriate e.g.
reduce, forfeit, defer for longer period.

Margin loans

Directors and Executives are not permitted to use TechnologyOne securities as security for margin loans.

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4 How Executive Remuneration is structured (continued)
4.4

Long‑term incentives (LTI) (continued)

The following provides a worked example to illustrate the operation of the LTI

Given an LTI grant value of $300,000, the KMP has the following two choices or a 50:50 mixture of each. The value remains the same in
all three choices.

Feature

Award vehicle

Vesting period

Description

Options

3 years

LTI grant value

$300,000

Description

Equity Performance Rights

3 years

$300,000

LTI metrics and weighting

EPS (75% weighting) and relative TSR (25% weighting)

Fair value of option at
grant date

Share price at grant date

Exercise price

$1.50

$7.65

$7.39

$7.50

$7.65

$0.00

In this example, we assume the KMP makes a 100% choice of Options.

Amounts recognised for LTI, given 100% weighting to a choice of Options

LTI metrics

Weighting

Grant number
of units

Expense of
Grant

Share price
at grant

Exercise price
per share

EPS growth %

Relative TSR

75%

25%

150,000

$225,000

50,000

$75,000

$7.65

$7.39

200,000

$300,000

For the Year 1 tranche of LTIs, the fair value is $300,000, recognised over 3 years. For the purposes of this worked example, we have
assumed that the fair value of options granted with each metric is the same.

TechnologyOne Annual Report 20235 Relationship between remuneration and Company performance
5.1

TechnologyOne’s five‑year performance

The below table sets out information showing the creation of shareholder wealth for the years ended 30 September 2019 to 30
September 2023. Profits and dividends have grown over the last five years, and growth in the fair value of Executive KMP’s remuneration
has not exceeded growth in profits over the period.

Net Profit before Tax reported

($’000)

76,389

82,470

97,843

112,320

129,854

2019

2020

2021

2022

2023

Profit before tax growth

Total dividend, including special

Share price for the year (closing)

Earnings per share (basic)

EPS growth

Annual Total Shareholder Return (TSR)

Rolling 3-year TSR

Continuing Executive STI

Continuing Executive STI Growth

Continuing Executive STI % of NPBT

LTI vesting as a % of maximum

Continuing Executive KMP remuneration growth1

Executive Remuneration % of NPBT

1 Excluding retention LTI granted in FY22

(%)

(cps)

($)

(cps)

(%)

11.93

7.18

18.43

12.88

7.94

19.75

13.91

11.36

22.64

17.02

10.60

27.51

(5)

($,000)

1,047

1,136

1,343

1,537

(%)

19.52

15.51

31.71

1,767

100

Profits have grown strongly and sustainably over the last five years, as have earnings per share and dividends, all while transforming
from perpetual licenses to a SaaS model.

As can be seen from the tables above, the Executive Remuneration Framework has successfully driven performance and the creation of
shareholder wealth over the longer term.

Making life simple for our communityRemuneration Report
(Audited)

5 Relationship between remuneration and Company performance (continued)
5.2 Detail of Executive remuneration and performance

The remuneration for Executives comprises the amounts outlined in the following tables.

Refer to section 6 below for details of service agreements with Executive KMP.

Edward Chung
Managing Director and Chief Executive Officer

2023
($)

2022
($)

Variance

(%) Notes

Fixed remuneration

Base salary

Superannuation

Total fixed remuneration

STI

STI - profit1

STI %

Total STI

Total Deferred STI

LTI

521,250

513,358

27,500

548,750

540,858

Increase includes statutory increase for
superannuation.

134,562,612

117,090,048

0.78%

1,049,588

913,302

15 Growth in STI is consistent with growth in NPBT,

the primary measure of STI.

230,081

198,851

16 Deferred STI (refer to section 4.3)

Fair value of options recognised

391,346

508,468

The value included for FY23 includes one third of
the FY21 LTI fair value plus one third of the FY22
LTI fair value plus one third of the FY23 LTI fair
value.

Fair value of options forfeited

Fair value of EPRs recognised

Fair value of EPRs forfeited

‑

(18,684)

Total LTI

391,346

489,784

(20)

Fair value of Retention LTI recognised

305,710

152,855

100 Grant in FY22 to encourage retention of key

Total remuneration

2,525,475

2,295,650

executive during critical growth phase through to
November 2026 and the transition from a founder
led company. This is not an annual grant.

The fair value of the grant will be recognised
over the five year vesting term FY22 to FY26.
The increase year on year here is reflective of a
partial year in the year of grant versus a full year
of expense in FY23.

10 Total remuneration has grown by 10%, less than
reported net profit before tax growth of 16%.

1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STIs are deducted.

TechnologyOne Annual Report 2023

Stuart MacDonald
Chief Operating Officer

Fixed remuneration

Base salary

Superannuation

Total fixed remuneration

STI

STI - profit1

STI %

Total STI

Total Deferred STI

LTI

2023
($)

2022
($)

Variance

(%) Notes

432,592

425,976

27,500

460,092

453,476

Increase includes statutory increase for
superannuation.

134,562,612

117,090,048

0.533%

717,219

624,090

15 Growth in STI is consistent with growth in NPBT,

the primary measure of STI.

157,222

135,882

16 Deferred STI (refer to section 4.3)

Fair value of options recognised

234,040

272,214

The value included for FY23 includes one third of
the FY21 LTI fair value plus one third of the FY22
LTI fair value plus one third of the FY23 LTI fair
value.

Fair value of options forfeited

Fair value of EPRs recognised

Fair value of EPRs forfeited

‑

(9,258)

Total LTI

234,040

262,956

(11)

Fair value of Retention LTI recognised

173,138

76,181

127 Grant in FY22 to encourage retention of key

Total remuneration

1,741,710

1,552,585

executive during critical growth phase through to
November 2026 and the transition from a founder
led company. This is not an annual grant.

12 Total remuneration has grown by 12%, less than
reported net profit before tax growth of 16%.

1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STIs are deducted.

Making life simple for our community

Remuneration Report
(Audited)

5 Relationship between remuneration and Company performance (continued)
5.2 Detail of Executive remuneration and performance (continued)

Paul Jobbins
Chief Financial Officer (resigned 17 July 2023)

Fixed remuneration

Base salary

Superannuation

Total fixed remuneration

STI

STI - profit1

STI %

STI forfeit

Total STI

2023
($)

2022
($)

Variance

(%) Notes

227,023

223,363

27,500

254,523

250,863

Increase includes statutory increase for
superannuation.

134,562,612

117,090,048

0.343%

(92,310)

(100) Mr Jobbins forfeited the 20% retention element of

his STI on resignation.

369,240

401,619

(8) Mr Jobbins resigned on the 17th of July 2023.

His service continued for the full FY23.

Total Deferred STI

(91,960)

87,444

(205) The Deferred STI recognised in prior years was

forfeited on resignation.

LTI

Fair value of options recognised

98,736

262,304

Fair value of options forfeited

(40,457)

(9,557)

The value in FY23 includes only the final year of
expense for the FY21 grant.

The value represents 191,015 share options that
were awarded as LTI in previous and current
financial years and were forfeited on resignation.

Fair value of EPRs recognised

Fair value of EPRs forfeited

Total LTI

‑

58,279

252,747

(77)

Fair value of Retention LTI recognised

(29,115)

29,115

(200) Grant in FY22 to encourage retention of key

executive during critical growth phase through to
November 2026 and the transition from a founder
led company. This is not an annual grant.

The retention LTI recognised in prior period
represented 205,761 share options that were
forfeited on Paul's resignation.

Post-employment benefits

247,000

Total remuneration

807,967

1,021,788

(21)

1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STIs are deducted.

TechnologyOne Annual Report 2023

Cale Bennett
Chief Financial Officer (commenced 01 August 2023)

2023
($)

2022
($)

Variance

(%) Notes

Fixed remuneration

Base salary

Superannuation

Total fixed remuneration

STI

STI - profit1

STI %

Total STI

Total Deferred STI

LTI

Fair value of one-off LTI options

Total LTI

Total remuneration

60,060

6,607

66,667

41,970,337

0.297%

124,652

10,388

96,153

297,860

The value included the salary in relation to two
months of the current year.

100 The value included the remuneration in relation to

two months of the current year.

100 The value included is in relation to two months of

the FY23 STI.

100 Deferred STI (refer to section 4.3)

FY23 value for buyout of equity held from
previous employment.

100

1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STIs are deducted.

Making life simple for our community

Remuneration Report
(Audited)

5 Relationship between remuneration and Company performance (continued)
5.3 Options and EPRs that became eligible to vest during FY23

During the year, Edward Chung, Stuart MacDonald and Paul Jobbins completed a three-year performance period relating to the LTI
instruments granted to them in FY21 and vesting in FY23. 100% of the Relative TSR options and 100% of the EPS Options became eligible
to vest, resulting in 100% of total LTI vesting.

A summary of the targets set and performance against each target and options which have vested and are available to be exercised
has been set out below:

Edward Chung

Grant year

Performance
measure

Option or
EPR

Number
of LTIs
available

Testing

Testing
year

Relative TSR

Option

63,730

3 year

FY23

Performance
measure
achieved

88.63%

Target

75th
percentile

FY21

EPS Growth

Option

191,189

3 year

FY23

15%

17.10%

Stuart MacDonald

Grant year

Performance
measure

Option or
EPR

254,919

Number
of LTIs
available

Testing

Testing
year

Relative TSR

Option

38,113

3 year

FY23

Performance
measure
achieved

88.63%

Target

75th
percentile

FY21

EPS Growth

Option

114,339

3 year

FY23

15%

17.10%

Paul Jobbins

Grant year

Performance
measure

Option or
EPR

152,452

Number
of LTIs
available

Testing

Testing
year

Relative TSR

Option

33,359

3 year

FY23

Performance
measure
achieved

88.63%

Target

75th
percentile

FY211

EPS Growth

Option

100,077

3 year

FY23

15%

17.10%

133,436

Number
forfeited

LTIs vested

% LTI
vested

63,730

100%

191,189

254,919

100%

Number
forfeited

LTIs vested

% LTI
vested

38,113

100%

114,339

152,452

100%

Number
forfeited

LTIs vested

% LTI
vested

33,359

100%

100,077

133,436

100%

1 Mr Jobbins fulfilled the vesting requirements for this LTI tranche. Given his resignation, the expiry date of these options has been brought forward to 30 November 2023.

100

TechnologyOne Annual Report 20235.4

Options/EPRs that have been granted in FY22 and FY23 and not yet vested

Edward Chung

Grant year

Performance measure

FY22

FY23

Relative TSR

EPS Growth

Relative TSR

EPS Growth

Stuart MacDonald

Grant year

Performance measure

Relative TSR

EPS Growth

Relative TSR

EPS Growth

FY22

FY23

Paul Jobbins

Grant year

Performance measure

FY22

FY23

Relative TSR

EPS Growth

Relative TSR

EPS Growth

Number of
LTIs available

48,104

144,312

43,126

129,378

Number of
LTIs available

28,768

86,304

25,791

77,373

Number of
LTIs available1

‑

1 The number of available LTIs is nil as these were forfeited on resignation.

Testing

Testing year

LTIs due to vest

3 year

FY24

FY25

Nov 2024

Nov 2025

Testing

Testing year

LTIs due to vest

3 year

FY24

FY25

Nov 2024

Nov 2025

Testing

Testing year

LTIs due to vest

3 year

FY24

FY25

Nov 2024

Nov 2025

101

Making life simple for our communityRemuneration Report
(Audited)

5 Relationship between remuneration and Company performance (continued)
5.5

LTI Retention options granted during the prior year that will vest on 30 November 2026

Edward Chung

Grant year

Performance measure

Number of options
available for vesting

Vesting

Vesting year

Total grant value

FY22

Service

720,165

Nov 2026

FY27

$2,038,066

Stuart MacDonald

Grant year

Performance measure

Number of options
available for vesting

Vesting

Vesting year

Total grant value

FY22

Service

475,000

Nov 2026

FY27

$1,154,250

Paul Jobbins

Grant year

Performance measure

Number of options
available for vesting1

Vesting

Vesting year

Total grant value

FY22

Service

Nov 2026

FY27

$582,305

1 The number of available LTIs is nil as these were forfeited on resignation.

6 Service agreements for the Executive KMP
Remuneration and other terms and conditions of employment for Executive KMP are formalised in service agreements which are
reviewed each year. All Executive KMP service agreements are rolling contracts which cease following notice of termination by either
employee or employer.

The following table presents some of the key contractual arrangements for the Executive KMP:

KMP

CEO

Other Executive KMP

Contract
term

Termination notice
by either party

Post‑employment
restraint

Ongoing

6 months

12 weeks

12 months

If a service agreement is terminated, payment in lieu of notice that is not worked may be provided, in addition to any statutory
entitlements. Typically, no other additional termination or post-employment benefits are provided on termination of employment. Refer
to sections 4.3 and 4.4 for treatment of STIs and LTIs on cessation of employment.

7 Non‑executive Director fees

Determination of Non‑executive Director fees

Director fees are set to enable TechnologyOne to attract and retain high calibre Directors and in recognition of the workload for
Directors. Director fee levels and fee pool are reviewed every three years by an independent consultant to remain competitive with
comparable companies based on market capitalisation, operational scope and key geographical areas. Fee increases between
independent reviews are capped at CPI.

In FY22, Board fees were $145,230 per Director, including statutory superannuation contributions. This was increased to $175,000 in FY23.
An additional fee of $27,500 was paid to each committee chair. The Independent Chair’s fee was $300,000 in FY23 (FY22: $145,230).

Aggregate fee pool

The total amount of Directors’ fees is capped at a maximum pool that is approved by shareholders. The current fee pool is capped at
$2,000,000, which was approved by shareholders at the Annual General Meeting on 22 February 2023.

102

TechnologyOne Annual Report 2023FY23 aggregate fee pool and Non‑Executive
Director fees

Non‑Executive Director shareholdings and
requirements

Non-Executive Directors (NEDs) are required to hold a minimum
shareholding of one year’s NED fees (pre-tax) in TechnologyOne
shares. NEDs are required to rectify any short fall within a
12-month period. New NEDs are allowed 36 months to meet
this requirement. The Board in total holds 25,060,592 shares
representing 8% of the total shares outstanding of the Company.
Individual holdings are as shown below. The share price as at the
end of the reporting period was $15.51.

2023

Balance at the
end of the year

% of Mandatory
Shareholding
Requirement

Non‑Executive Directors of Technology One Limited

An independent market review of Non-Executive Director (NED)
fees was conducted in the prior year. Consequently, the board
determined that an increase in the Board and Committee fees
was appropriate given:

•

The need to appropriately compensate an Independent
Non‑Executive Chair in recognition of the additional workload
of Pat O’Sullivan who was appointed to the position on 30
June 2022.

Increased workload of Directors due to significant growth
in size over the last 3 years, additional responsibilities
transitioning from a founder-led company, and international
expansion in the UK.

NED fees were below market and inconsistent with market
practice where additional fees are paid to recognise the
additional workload in chairing a committee.

Shareholder approval was obtained at the FY22 AGM to increase
the fee pool to $2,000,000, from $1,500,000. This will allow
the Board to attract and retain high calibre directors (including
overseas directors) in a competitive technology market, provide
flexibility for Board succession planning and appointment of new
directors.

The table below sets out the Non-Executive Director Fees paid
during FY23.

Board and Committee Fees (inclusive of
superannuation)

Board Chair – all-inclusive fee

Non-Executive Director – base board fee

Audit and Risk Committee Chair

Audit and Risk Committee Member

Remuneration
Committee Chair

Remuneration
Committee Member

Nomination and Governance
Committee Chair

Nomination and Governance
Committee Member

P O’Sullivan

J Mactaggart

R Anstey

Dr J Andrews

S Doyle

C Rosenberg

P Ball

FY23 Fees

2022

$300,000

$175,000

$27,500

P O’Sullivan

R McLean

J Mactaggart

$27,500

R Anstey

Dr J Andrews

S Doyle

C Rosenberg

P Ball

$27,500

The Board Chair does not receive any additional committee fees.

Non‑Executive Directors of Technology One Limited

39,779

24,902,500

20,000

30,600

18,280

27,533

21,900

100%

Balance at the
end of the year

% of Mandatory
Shareholding
Requirement

39,779

69,737

26,902,500

30,000

30,600

18,280

27,533

21,900

100%

103

Making life simple for our communityRemuneration Report
(Audited)

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TechnologyOne Annual Report 2023

9 Additional statutory disclosures
9.1

Long‑term incentive scheme

In 2016, TechnologyOne replaced its previous Executive Option Plan (EOP) with an LTI Plan aligned to market, shareholder and Executive
requirements. Options and EPRs issued under the new plan are outlined in the tables below.

Options

2023

Name

Opening
balance of
share options

Number
of options
granted during
the period

Number
of options
exercised
during the
period

Number
of options
forfeited
during the
period1

Other
movements2

Closing
balance of
share options

Vested and
exercisable

Unvested

Edward Chung

1,425,033

172,504

(257,535)

Stuart MacDonald

905,425

103,164

(54,000)

1,340,002

254,917

1,085,085

954,589

152,450

802,139

Paul Jobbins

582,497

90,298

(142,583)

(396,776)

(133,436)

1 Options and EPRs forfeited during the vesting period, are due to employment resignation.

2 Other movements are options vested on resignation.

9.2

Fair value of options granted in FY23

2023

Name

Edward Chung

Stuart MacDonald

Paul Jobbins3

Number
of options
granted during
the period1

Weighted
average/
Fair value per
options issued
during the
period2

Grant date

Exercise price

Vesting date

Expiry Date

Fair value of
grant

Metrics

129,378

2.65

01/10/2022

11.03

30/11/2025

30/11/2030

342,852

EPS

43,126

77,373

25,791

67,722

22,574

2.32

01/10/2022

11.03

30/11/2025

30/11/2030

100,052

Relative TSR

2.65

01/10/2022

11.03

30/11/2025

30/11/2030

205,038

EPS

2.32

01/10/2022

11.03

30/11/2025

30/11/2030

59,835

Relative TSR

2.65

01/10/2022

11.03

30/11/2025

30/11/2030

179,463

EPS

2.32

01/10/2022

11.03

30/11/2025

30/11/2030

52,372

Relative TSR

1 LTIs are offered to Executive KMP as either options (with an exercise price) or EPRs (executive performance rights issued at market price).

2 The assessed fair value at grant date of options granted to the individuals is recognised over the period from grant date to vesting date. The amount is included in the remuneration

tables above.

3 Mr Jobbins' grant was forfeited during the year on resignation.

The model inputs for options granted to Executives are as follows:

(a) Options are granted for no consideration. Each tranche vests subject to meeting performance hurdles

(b) Dividend yield – 1.35%

(c)

Expected volatility – 33.89%

(d) Risk-free interest rate – 3.61%

(e) Price of shares on grant date – $10.60

(f)

Fair value of options – $2.32-$2.65

The performance measures for LTI grants made in FY23 are presented below while the Retention LTIs vest based on service conditions.
The performance targets, set out below, are such that they are all considered to be challenging targets that, if met, will drive significant
shareholder wealth creation.

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9 Additional statutory disclosures (continued)
9.2

Fair value of options granted in FY23 (continued)

Performance Metrics

Performance period

EPS growth

Relative TSR1

3 years

The performance targets to be achieved by the Executives are set out below:

Testing

3 years

Weighting (all KMP)

75%

25%

Performance Metric

Growth <5%

Growth >=5%, <15%

Growth >=15%

EPS growth

0% vest

50% vest at 5% growth with linear vesting (50% to
100%) up to 15% growth

100% vest

Performance Metric

Percentile <50

Percentile >=50, <75

Percentile >=75

Relative TSR1

0% vest

50% vest at 50th percentile for relative TSR with
linear vesting (50% to 100%) up to 75th percentile

100% vest

1 Relative TSR targets are determined with reference to our peer group. Our peer group is defined as those constituent companies making up the ASX All Technology Index (XTX).

9.3

Equity instruments held by Directors and Key Management Personnel

The number of shares in the Group held during the financial year by each Director and Executive KMP of Technology One Limited,
including their personally related parties, are set out below. There were no shares granted during the reporting period as compensation.

2023

Balance at the start
of year

Purchased during the
year

Sold during the year

Other movements1

Balance at the end of
the year

Directors of Technology One Limited

P O’Sullivan

R McLean

J Mactaggart

R Anstey

Dr J Andrews

S Doyle

C Rosenberg

P Ball

39,779

69,737

26,902,500

30,000

30,600

18,280

27,533

21,900

(20,000)

(2,000,000)

4,000

(14,000)

(49,737)

39,779

24,902,500

20,000

30,600

18,280

27,533

21,900

1 Represents balance held at date of resignation.

2023

Balance at the start
of year

Purchased during the
year

Sold during the year

Other movements1

Balance at the end of
the year

Senior Executives of the Group

E Chung

S MacDonald

P Jobbins

C Bennett

900,068

46,367

257,535

54,000

142,583

(457,535)

(100,367)

(142,583)

2,862

(68)

700,068

2,862

1 The balance for S MacDonald represents total shares obtained via the Employee Share Plan. The balance for P Jobbins represents balance held at date of resignation.

106

TechnologyOne Annual Report 20232022

Balance at the
start of year

Purchased
during the year

Sold during
the year

Other
movements1

Balance at the
end of the year

Directors of Technology One Limited

A Di Marco

R McLean

J Mactaggart

R Anstey

Dr J Andrews

S Doyle

C Rosenberg

P Ball

P O'Sullivan

17,378,500

69,737

26,902,500

30,000

30,600

18,280

27,533

21,900

15,509

24,270

(17,378,500)

69,737

26,902,500

30,000

30,600

18,280

27,533

21,900

39,779

1 Represents balance held at date of resignation.

2022

Senior Executives of the Group

E Chung

S MacDonald

P Jobbins

Balance at the
start of year

Purchased
during the year

Sold during
the year

Other
movements2

Balance at the
end of the year

900,068

55,068

172,876

46,299

212,763

(172,876)

(55,000)

(212,763)

900,068

46,367

9.4

Loans to Directors and Key Management Personnel

There have been no loans to Directors or Key Management Personnel during the financial year (2022: nil).

9.5 Other transactions with Key Management Personnel

During the year there were no transactions with the Key Management Personnel (2022: nil).

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Remuneration Report
(Audited)

10 Key questions
Key questions

TechnologyOne approach

Why does our remuneration
framework have such a high
weighting towards variable
remuneration?

Our Executive Remuneration Framework aligns with many common practices for ASX 100 companies but has been
adapted to meet the demands of the enterprise software market. Relative to our ASX-listed peers, our Executives
receive:

(a)

(b)

(c)

(d)

(e)

Relatively low fixed remuneration to enable a greater emphasis on performance.

Relatively large at-risk short-term incentive (STI) portion aligning Executives to current year performance.

Deferred STI component to help further drive long-term shareholder wealth and ensure that we retain high
performing Executives.

Long-term incentives (LTI) linked to long-term strategy, targets, and shareholder wealth creation.

FY22 Retention LTI grants to ensure the retention of high performing technology industry executives during a
critical phase of growth and to ensure smooth transition from a founder-led company.

Winning of new business, driving continued profit growth in the current year is the key to our long-term success, and it is
for this reason our STI as a percentage of the total remuneration is significantly higher than our ASX-listed peers.
At the same time, the fixed remuneration for our Executives is comparatively low compared to our ASX-listed peers.
The significant weighting towards the STI encourages our Executives to drive new business and financial performance in
the current year, which creates Annual Recurring Revenue (ARR)1 for future years, and therefore long-term success and
shareholder wealth.

TechnologyOne Executives are aligned to the long-term outcomes of the business through the Deferred STI and a large
long-term incentive (LTI and FY22 retention LTI) component.

The talent pool in Australia for Executives with large scale enterprise software companies is highly competitive.
Therefore, it is important to ensure that our remuneration framework is appropriately structured for the enterprise
software market. We believe that our remuneration structure offers the necessary flexibility and incentive to ensure that
we attract and retain talented Executives who understand the industry and, in turn, drive shareholder value.

Why is the KMP LTI based on
EPS growth and Relative TSR?

Earnings per share (EPS) growth and relative total shareholder return (rTSR) have been selected as appropriate
performance measures. The rationale for the selection of these two measures is as follows:

•

EPS growth: Ensures that our Executives are remunerated in line with growth in shareholder wealth over the long
term.

Relative TSR: Ensures that our Executives are remunerated in line with the Company’s creation of shareholder wealth
relative to our peers over the long term.

These two measures ensure we have LTI targets which are directly aligned with trends in shareholder wealth over the
long term.

There is debate among proxy advisors and investors about the use of rTSR as an LTI metric, with some for and some
against. Relative TSR may not be particularly useful as an incentive on its own, as management have little direct
influence over outcomes, however, when combined with the EPS growth metric (which has been given a higher weighting
of 75%) we feel it results in a very effective LTI for our Executive KMP. The combination of these metrics ensures that
Executives are aligned with shareholder wealth creation (EPS growth) ensuring that performance is better than that of
our peers (rTSR).

1 ARR is not an IFRS measure and is unaudited, it represents future contracted annual revenue at year end.

Key questions

TechnologyOne approach

Why does the Relative TSR
performance hurdle not have a
gate for positive TSR?

Relative TSR considers the relative performance of the Company’s share price, relative to the share price of its market
peers. For instruments to vest, the Company’s performance needs to be better than that of our peers.

If relative TSR is better than market peers, but represents a negative return, it is unlikely that there will be any intrinsic
value in the equity instrument, so the Executive is unlikely to realise any increased value at the time of vesting. Further,
the value of the instrument is aligned with shareholder experience, either positive or negative.

We believe that this framework is consistent with our remuneration principle of commitment to simplicity.

Is our STI plan sufficiently
challenging with only one
performance measure?

The winning of new business, driving continued profit growth is the key to our long-term success. Having Executives
focus solely on net profit before tax (NPBT) ensures there is clear line of sight for Executives and transparency for
shareholders as to how STI awards are determined. The setting of NPBT as the measure (rather than components
contributing to NPBT) give Executives the flexibility to be agile and choose appropriate strategies based on the market
environment and leveraging opportunities to meet their targets.

NPBT incorporates the outcomes of the key drivers of our business including winning new annual recurring revenue
through new and existing customers, customer retention, expense management and margin expansion.

108

TechnologyOne Annual Report 2023Key questions

TechnologyOne approach

What is the rationale for having
an uncapped STI?

An important element of the success of our STI has been that it is uncapped on the upside and downside.

The greater the results in the current financial year, the greater the STI. This not only encourages over performance in
the current financial year for the Company, it has a significant flow on effect in future years through the greater annual
recurring revenues for the Company. The uncapped STI also helps retain Executives over the long-term, because the
more they succeed, the more financial incentive there is to stay with us and continue to work hard to achieve each year,
and the greater benefit to our shareholders through an ever-increasing recurring revenue base.

Likewise, if the Company under-performs (e.g. loss of customers) or the results in a year are lower (e.g. impairment), there
is a significant financial impact to Executives as their STI forms a significant portion of their total remuneration. Just as
the STI is uncapped on the upside, it is also uncapped on the downside. Given that the Executive’s fixed remuneration
percentage is significantly lower than our ASX-listed peers, under-performance has a significant, negative impact on
their total remuneration.

This performance measure is well-aligned with the interests of shareholders, as NPBT outcomes above target, rewards
shareholders as well as executives. Poor performance also penalises Executives as well as shareholders.

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10 Key questions (continued)
TechnologyOne approach
Key questions

Why did we introduce a
Deferred STI?

A Deferred STI component was introduced in FY19 where an additional amount equal to 25% of the STI earned in the
year under review is awarded and deferred for a period of two years (i.e., 20% of total STI).

The award is only paid out to the Executive if they remain in employment with the Company for the entire deferral
period. This deferral:

•

Assists in retaining high performing Executive KMP

Helps further drive long-term shareholder wealth via Executive skin in the game, fostering a long-term mind set
among executives

Provides opportunity to forfeit the award. Prior to its award or vesting, the Remuneration Committee considers
whether there are any irregularities or other factors that would affect the payment or vesting of that award
(Malus Provision).

What is the rationale for
deferring 20% of the total
STI award, and not a higher
amount?

Our Executives receive:

•

Relatively low fixed remuneration to enable a greater emphasis on performance

Relatively large at-risk short-term incentive (STI) portion aligning Executives to current year performance

• Deferred STI component to help further drive long-term shareholder wealth and ensure that we retain high

performing Executives

Given the low fixed remuneration, and emphasis on performance related at-risk remuneration, it is not considered
appropriate to defer greater than 20% of the total STI.

Were Retention LTIs granted?

No retention LTIs were granted in FY23.

Does our remuneration
framework align our executives
with shareholders?

TechnologyOne Executive remuneration continues to be clearly aligned with shareholder value creation. Our Executives
have the greatest percentage of their remuneration at risk and aligned with Company performance when compared to
our peers.

Refer section 3.1 for our remuneration strategy and principles, and section 5.1 showing the creation of shareholder
wealth for the years ended 30 September 2023 compared to executive remuneration growth.

The Executive Remuneration Framework has successfully driven performance and the creation of shareholder wealth
over the longer term.

110

TechnologyOne Annual Report 2023Corporate Governance Statement

Contents

1 Corporate Governance Statement

2 Board of Directors

3 Company Secretary

4 Audit & Risk Committee

5 Remuneration Committee

6 Nomination & Governance Committee

7 Corporate Governance Principles & Recommendations

7.1 Ethical Standards and Code of Business Conduct

7.2 Safeguard Integrity in Financial Reporting

7.3 Continuous Disclosure

7.4 Risk Assessment Management

7.5 Accounting Standards and Company Policies

7.6 Remuneration Principles

7.7 Performance Evaluation

7.8 Trading in Company Securities

7.9 Shareholders’ Rights and Communication

8 ASX Corporate Governance Principles and Recommendations 4th Edition Compliance

112

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Making life simple for our community

Corporate Governance Statement

1 Corporate Governance

Statement

The Board of Directors of the Company is responsible for
its corporate governance. The Board guides and monitors
the business and affairs of the Company on behalf of the
shareholders by whom they are elected and to whom they
are accountable.

The Directors have established guidelines for the operation of
the Board and its Committees. Set out below are the Company’s
main corporate governance practices.

The TechnologyOne Board routinely considers industry
governance initiatives of benefit to the Company and its many
stakeholders. The Board has adopted the 4th Edition of the ASX
Corporate Governance Principles and Recommendations.

The Corporate Governance Statement, as well as supporting
documents are available on the Company’s internet site:
www.technologyonecorp.com/company/investors/
corporate‑governance

2 Board of Directors
The Board of the Company currently comprises eight Directors
and includes:

Pat O’Sullivan

Non-Executive Director - Independent
Board Chair (appointed 30/6/22)

Edward Chung

Managing Director (appointed 15/08/2023)
(CEO since 23 May 2017)

John Mactaggart

Non-Executive Director -
Major shareholder (appointed 08/12/1999)

Richard Anstey

Non-Executive Director –
Independent (appointed 02/12/2005)

Dr Jane Andrews

Non-Executive Director –
Independent (appointed 22/02/2016)

Sharon Doyle

Non-Executive Director -
Independent (appointed 28/02/2018)

Cliff Rosenberg

Non-Executive Director -
Independent (appointed 27/02/2019)

Peter Ball

Non-Executive Director –
Independent (appointed 02/03/2020)

The following information is provided in the Corporate
Governance section of the Company’s Annual Report:

• Details of names, qualifications, skills, experience and dates

of appointment of each Board member.

•

The number of meetings of the Board and the names
of attendees.

Explanation of any departures from the ASX Corporate
Governance Principles and Recommendations.

The role of the Board is as follows:

•

Setting objectives, goals and strategic direction for
management, with a view to maximising shareholder value.

•

Input into and ratifying any significant changes to the Company.

• Adopting an annual budget and monitoring

financial performance.

•

Ensuring adequate internal controls exist and are
appropriately monitored for compliance.

Ensuring significant business risks are identified and
appropriately managed.

Selecting, appointing and reviewing the performance of the
Chief Executive Officer / Managing Director.

Setting the highest business standards and code of
ethical behaviour.

• Decisions relating to the appointment or removal of the

Company Secretary.

•

To review and evaluate the performance of the Board as a
whole, each Committee, key Executives and each Director on
an annual basis.

The Board has the authority to delegate any of their powers to
committees consisting of such Directors and external
consultants, as the Board think fit. The Board has established
the following committees:

• Audit & Risk Committee

• Remuneration Committee

• Nomination & Governance Committee

Board papers are prepared for the Directors, containing detailed
operational reports from each region and department in the
Company, highlighting:

• Operational performance.

•

Initiatives undertaken/completed.

Identified problems/risks and proposed solutions.

The Chief Executive Officer / Managing Director also prepares a
summary report that highlights:

•

Financial performance year to date, and forecast for the
full year.

• Key matters and significant issues.

•

Significant changes proposed.

Proposed strategic initiatives.

• Risk Management.

On a regular basis, members of the Senior Leadership Team are
invited to present to the Board directly and to answer questions
the Board may have.

The strategy of the Company, as well as matters reserved to the
Board, are reviewed at least annually by the Board.

112

TechnologyOne Annual Report 2023Matters Reserved to the Board

Matters that are reserved to the Board are as follows:

• Communications with shareholders and the market in general,

including ASX announcements, through the Board Chair.

•

Input into and subsequent approval of corporate strategy
and performance objectives.

• Oversight of the Company’s governance policies, including

the Company’s Code of Business Conduct.

• Oversight and monitoring of the internal compliance with legal
and regulatory obligations (e.g. ASX, ASIC, ATO, Whistleblower,
Workplace Health Safety)

•

Input into and subsequent approval of significant
organisational structure/restructure.

• Review of the Chief Executive Officer / Managing Director
and Company Secretary to the relevant Code of Conduct
established by the Board.

• Appointing and removing the Managing Director and / or
Chief Executive Officer and monitoring their performance
respectively.

•

Input into and subsequent approval of the budget including
Operating Expenditure and Capital Expenditure, and any
significant variations.

• Oversight of the Company, including its control and

accountability systems.

•

Input into and subsequent approval of changes to internal
systems and controls.

• Review, and accept/reject recommendations from

sub-committees such as Audit & Risk, Remuneration and
Nomination & Governance committees.

•

Input into and ratifying any acquisitions and divestitures.

All other matters are referred to management via the Chief
Executive Officer / Managing Director. The Chief Executive
Officer / Managing Director are authorised to sub-delegate their
authority for the day-to-day operation of the Company.

Board Skills
As a collective, the Board has extensive commercial skills and
experience which provide a solid base for the governance of the
Company. The Board has a combination of experience in the
following core areas:

•

Strategic and Commercial Acumen

Finance and Taxation

• Risk and Compliance

•

IT and Communications Industry

Software and Product Development

Start-ups and Early Stage Investments

• Corporate Governance and ESG

•

Sales and Marketing

People, Culture and Conduct

Executive Management and Leadership

Listed Entities

International Business.

The Board as a whole benefits from the combination of the
Director’s individual skills, experience and expertise in particular
areas, as well as the varying perspectives that arise from the
Board’s interactions through their diverse backgrounds.

The Board membership is to provide a suitable level of skills to
properly guide the Company and deliver the Company’s strategic
objectives and provide a solid base for governance.

The Board assesses its level of skills annually and will address
any requirements for additional skills that it feels would be in the
best interest of the Company in response to wider market factors
and the growth of the Company. The Board has determined the
core skills for its governance of the Company. The Board has the
authority to appoint Directors and will consider the recommended
appointments as proposed by the Nomination & Governance
Committee. The Board will assess whether to recommend / not
recommend endorsement of a Director at each General Meeting.

Director Principles

The Directors operate in accordance with the following
broad principles:

•

The Board should comprise of at least three members, but
no more than 10.

The Board may increase the number of Directors where it is felt
that additional expertise in specific areas is required. The size
of the Board is to be appropriate to all it to be effective and to
react quickly to opportunities and mitigate threats.

The Board should be comprised of Directors with an
appropriate mix of skills, qualifications, expertise, experience
and diversity. The skills, experience and expertise which the
Board considers to be particularly relevant include those
listed above. In respect of diversity, the Board recognises that
diversity includes, but is not limited to gender, age, ethnicity
and cultural background. The Board values diversity and
acknowledges the individual contribution that people can
make and the opportunity for innovation that diversity brings.

The Board shall meet on both a planned basis and an
unplanned basis when required and have available all
necessary information to participate in an informed discussion
of agenda items.

The Directors are entitled to be paid expenses incurred in
connection with the execution of their duties as Directors.
Each Director is therefore able to seek independent
professional advice at the Company’s expense, where it is in
connection with their duties and responsibilities as Director.
The Company policy is that a Director wishing to seek
independent professional advice should advise the Board
Chair at least 48 hours before doing so.

The Directors and Officers will not engage in Short-Term
trading of the Company’s shares. Furthermore, the Directors
and Officers will not buy or sell shares at a time when they
possess information which, if disclosed publicly, would be likely
to materially affect the market price of the Company’s shares.
Information is not considered to be generally available until a
reasonable time has elapsed to allow the market to absorb
these announcements. A detailed policy exists on this matter
– refer below, section: Trading in Company Securities.

• Directors have a clear understanding of the corporate and

regulatory expectations of them. To this end, formal letters of
appointment are made for each Director setting out the key
terms and conditions, any special duties or arrangements,
remuneration and expenses, their rights and entitlements,
confidentiality and rights of access to corporate information,
as well as Indemnity and Insurance cover provided.

• Newly appointed Directors undertake an induction course

covering the Company’s strategy, products and operations.
They are also provided a copy of the Company’s constitution,
charters and key policies.

113

Making life simple for our communityCorporate Governance Statement

2 Board of Directors (continued)

Director Appointments

Director Principles (continued)

• Directors are required to disclose Directors’ interests and any
matters that may affect the Director’s independence. This
includes disclosure of conflicts of interest, which may include
transactions with family members or related entities.

•

If there is a potential conflict of interest, conflicted
Directors must immediately inform the Board and abstain
from deliberations on such matters. Such Directors are
not permitted to exercise any influence over other Board
members. If the Board believes the conflict of interest is
material or significant, the Directors concerned will not be
allowed to attend the meeting or receive the relevant
Board papers.

Director Independence

The Board comprises a majority of independent Non-Executive
Directors who have broad commercial experience and bring
independence, accountability and judgement in discharging
the Board’s responsibilities to ensure optimal returns to
shareholders and the ongoing provision of benefits to the
Company’s employees.

The Board is required to disclose any material information that
could influence, or would be reasonably perceived to influence,
in a material respect their capacity to bring an independent
judgement to bear on the issues before the Board and to act in
the best interests of the Company and its shareholders.

The independence of the Directors is assessed annually in
accordance with the ASX Corporate Governance Principles
and Recommendations.

TechnologyOne will only enter into an agreement for the provision
of consultancy or similar services by a Director or Senior Executive
or by a related party of theirs if TechnologyOne has independent
advice that the services being provided are outside the
ordinary scope of their duties as a Director or Senior Executive;
the agreement is on arm’s length terms; and the remuneration
payable under it is reasonable and with full disclosure of the
material terms to securityholders.

TechnologyOne has aligned its Committee composition strategy
to comply with the ASX Corporate Governance Principles and
Recommendations, ensuring that newly appointed Directors are
made members of the appropriate Committees once they have
had sufficient time to develop a comprehensive understanding
of TechnologyOne’s operations. All Committees are comprised of
independent Non-Executive Directors.

All Directors, both Executive and Non-Executive, receive written
notifications of their appointment and a new Director induction
pack which details the terms and conditions of their appointment,
remuneration (including superannuation contributions), continuous
disclosure requirements (including interests in the Company),
ongoing confidentiality obligations, Company policies on when
to seek independent professional advice, and the Company’s
indemnity and insurance measures.

Prior to appointment, appropriate checks are undertaken on the
candidates and relevant information provided to shareholders
to consider when voting on the election of the Director. Relevant
information is also provided for shareholders to consider when
voting to re-elect existing Directors upon rotation. Executive
Directors and Senior Executives of the Company will also have
formal written employment agreements which set out the terms
of their employment, roles and responsibilities, reporting lines,
remuneration, confidentiality and termination provisions.

All Directors and Senior Executives are required to comply with
key corporate policies which include, but are not limited to, Code
of Business Conduct, Share Trading Policy, Insider Trading Policy,
Privacy Policy and Diversity Policy.

All new Directors and Senior Executives participate in the
Company’s formal on-boarding program which includes an
induction program which incorporates meetings with key
Senior Executives.

The Board has the authority to appoint Directors and will consider
the recommended appointments as proposed by the Nomination
& Governance Committee. The Board will assess whether to
recommend / not recommend endorsement of a Director at each
General Meeting.

3 Company Secretary
Company Secretaries are appointed by the Board by resolution.

Company Secretaries are accountable directly to the Board,
through the Board Chair.

The role of the Company Secretary is as follows:

• Advising the Board and Committees on governance matters.

• Monitoring adherence of Board and Committees to policies

and procedures.

• Coordinating timely completion and despatch of Board and

Committee papers.

•

Ensuring business at Board and Committee meetings is
accurately captured in the minutes.

Helping to organise and facilitate induction and professional
development of Directors.

114

TechnologyOne Annual Report 20235. Compliance

• Monitor compliance with the requirements of the Corporations
Act, Listing Rules, Australian and Foreign Taxation Offices
and other related legal obligations.

6. Risk Management

• Oversee the ongoing development by management of an

enterprise-wide risk management framework for management
of material risks.

•

Periodically review the adequacy and effectiveness of
the Company’s policies and procedures relating to risk
management and compliance.

• Make recommendations to the Board on key risk
management matters and levels of risk appetite.

• Oversight of the insurance portfolio with consideration of
material risks, including cyber risk and information security.

The committee meets at least four times per year, with full
minutes being kept, and reports to the Board on a regular basis.
The number of meetings held during the year and the attendance
of the members is provided in the Annual Report.

The Audit & Risk Committee Charter is available on the
Company’s website.

Principles of the Audit & Risk Committee

The committee operates in accordance with the following broad
principles:

• Advise and assist the Board in fulfilling its responsibilities

relating to financial management, risk oversight and reporting
functions and in safeguarding the Company's assets.

•

Provide a means of easy access to the Board for the external
auditors in order to assist them in performing their functions.

• Assign the Secretary of the Committee such duties and

responsibilities as the Committee may deem appropriate.

•

Take actions as necessary or prudent to fulfill the
responsibilities of the Committee, provided that no action will
be taken without prior approval of the Board.

TechnologyOne requires the rotation of the external audit
partner every five years. The Audit & Risk Committee
includes members who are financially literate; and at least
one member who has financial expertise, preferably a
qualified accountant.

4 Audit & Risk Committee
The Board has established an Audit & Risk Committee.

The committee is comprised of:

Peter Ball (Chair)

Independent Non-Executive Director

Dr Jane Andrews

Independent Non-Executive Director

Sharon Doyle

Independent Non-Executive Director

The role of the committee is to assist the Board in discharging its
obligations with respect to the following areas:

•

Financial Reporting

Ensure the integrity in financial reporting (refer section below –
Safeguard Integrity in Financial Reporting).

• Review for accuracy financial statements for each reporting

period prior to approval by the Board, and publishing.

•

Ensure required declarations from the Company’s Chief
Executive Officer and Chief Financial Officer are received for
each reporting period.

Ensure that the financial statements for each reporting period
comply with appropriate accounting standards.

• Regularly review Accounting Standards and Company Policies
in conjunction with the Auditors and recommend adoption/
changes to the Board.

• Directly follow-up action where considered necessary.

• Relay any matters of concern to the Board.

Tax Governance

• Oversight of the Company’s group taxation matters and

ongoing development.

• Review of taxation governance processes, policies, control

framework and reporting.

Internal Audit

•

Ensure that systems of internal control are functioning
effectively and economically and that these systems and
practices contribute to the achievement of the Company’s
corporate objectives.

Ensure the Internal Audit Function maintains a high standard
of performance.

External Audit

• Receive and review reports from the external Auditor.

• Oversight of the process to ensure the independence and

competence of the Company’s external auditors.

• Review the performance of the external auditor on an

annual basis.

• Recommend the selection and the appointment of the

external Auditors, based on specified criteria.

115

Making life simple for our communityCorporate Governance Statement

5 Remuneration Committee
The Board has established a Remuneration Committee.

The committee is comprised of:

Dr Jane Andrews (Chair)

Independent Non-Executive Director

Cliff Rosenberg

Independent Non-Executive Director

Peter Ball

Independent Non-Executive Director

The role of the committee is:

To advise the Board with regard to the Company’s broad
policy for Senior Executive and Director remuneration.

To determine, on behalf of the Board, the individual
remuneration packages for Senior Executives and Directors.

To give the Company’s Senior Executives encouragement
to enhance the Company’s performance and to ensure
that they are fairly, but responsibly, rewarded for their
individual contribution.

•

To consider the vesting of any deferred remuneration
including deferred STI & LTI to assess whether there are any
irregularities or other factors that would affect the payment
or vesting of that award (that is, consider whether to apply
malus provision or utilise discretion).

Non-Executive Directors’ remuneration is determined by the Board
within the aggregate amount per annum which may be paid in
Directors’ fees.

Executives are not present for Committee discussions on Senior
Executive remuneration.

•

6 Nomination & Governance

Committee

The Board has established a Nomination & Governance
Committee.

The Committee is comprised of:

Cliff Rosenberg (Chair)

Independent Non-Executive Director

Sharon Doyle

Independent Non-Executive Director

Dr Jane Andrews

Independent Non-Executive Director

The role of the Committee is as follows:

• Assessment of the necessary and desirable competencies

and experience for Board membership.

Consideration of the membership of the Board, Audit & Risk
and Remuneration committees

Evaluation initially and on an on-going basis of Non-Executive
Director’s professional development, commitments, and their
ability to commit the necessary time required to fulfill their
duties to a high standard.

• Adherence by Directors to the Director’s Code of Conduct

and to good corporate governance.

• Review of Board succession plans.

• Recommendation for changes to Committees.

• Recommendation of, and undertaking the appropriate checks,

before the appointment of new Directors.

• Recommendation of, and undertaking the appropriate checks,
for the endorsement or non-endorsement of existing Directors.

The number of meetings held during the year and the attendance
of the members is provided in the Annual Report.

•

Ensuring that an effective induction process is in place for
new Board members.

The Remuneration Committee Charter is available on the
Company’s website.

• Review and oversight of the Company’s Corporate

Governance Statement and governance related policies.

• Review and oversight of the Company’s Environmental, Social
& Governance (ESG) strategy and Sustainability Reporting

• Oversee compliance with Modern Slavery Regulations

The number of meetings held during the year and the attendance
of the members is provided in the Annual Report.

The Nomination & Governance Committee Charter is available on
the Company’s website.

Principles of the Remuneration Committee

The Committee operates in accordance with the following
broad principles:

•

The Committee should provide the packages needed to
attract, retain and motivate Senior Executives, but avoid
paying more than is necessary.

The Committee should judge where to position the Company
relative to other companies. Be aware of comparable
companies’ pay, but exercise caution.

The Committee should be sensitive to the wider scene,
especially regarding salary increases.

Performance related elements should form a significant
proportion of the package; should align interests with those of
shareholders; and should provide keen incentives.

The Committee should ensure that the framework remains
largely consistent year on year with any changes designed to
motivate executives rather than destabilise them.

116

TechnologyOne Annual Report 2023Assessment of Director Independence

The Board has determined that an independent Director will meet
all the following criteria:

•

Is not an Executive Director (i.e. not a member of the
management team).

Is not a substantial shareholder of the Company, as defined
by Section 9 of the Corporations Act, or an officer of a
company that is a substantial shareholder.

Is not directly associated with a substantial shareholder
of the Company.

• Within the last three years, has not been employed in an
Executive capacity by the Company or another group
member, or been appointed a Director within three years
after ceasing to hold such employment.

• Within the last three years, has not been a principal of a
material professional adviser or a material consultant to
the Company or another group member, or an employee
materially associated with the service provider.

•

Is not a material supplier or customer of the Company
or other group member, or an officer of or otherwise
associated, either directly or indirectly, with a material
supplier or customer. This includes family members being
in these categories.

• Has no material contractual relationship with the

Company or another group member other than as a
Director of the Company.

•

Is free from any interest and any business or other relationship
which could, or could reasonably be perceived to, materially
interfere with the Director’s ability to act in the best interest of
the Company.

Principles of the Nomination & Governance
Committee

The committee operates in accordance with the following
broad principles:

•

The Nomination & Governance Committee is entitled to seek
the advice of an external consultant.

The Nomination & Governance Committee will make
recommendations to the Board. The Board is responsible
to appoint the most suitable candidate, after receiving
recommendations from the Nomination & Governance
Committee. The nominated appointee upon acceptance will
hold office until the next Annual General Meeting, where the
appointee will stand for election.

The name of all candidates submitted for election as
Director is accompanied with necessary information required
by shareholders to make an informed decision including
biographical details, competencies, qualifications, details
of relationships between the Company, the candidate and
incumbent Directors; other directorships held, particulars
of other positions held which involve significant time
commitments, and any other particulars required by law
or good corporate governance. For existing Directors
standing for re-election, the number of years as a Director of
TechnologyOne will also be provided in the Annual Report.

• Directors (with the exception of a Managing Director if

appointed by the Board) must stand for re-election every
three years in accordance with the Company’s Constitution.
One third of the Directors retire from office at each Annual
General Meeting and are eligible to nominate for re-election.

• A structured process has been established to review
and evaluate the performance of the Board and its
Committees. This process also identifies ways to improve
their performance, interaction with management, and quality
of information provided.

The following information is provided in the Annual Report:

•

The skills, experience and expertise relevant to the position
of Director.

The names of Directors considered by the Board to
constitute independent Directors and the Company’s
materiality thresholds.

The term of office held by each Director at the date of the
Annual Report.

The number of meetings held by the Nomination &
Governance Committee and the names of attendees.

Explanation of any departures from the ASX Corporate
Governance Principles and Recommendations.

117

Making life simple for our communityCorporate Governance Statement

7 Corporate Governance Principles & Recommendations
7.1

Ethical Standards and Code of
Business Conduct

All Directors, Senior Executives and employees are expected to
act with the utmost integrity and objectivity, observe the highest
standards of behaviour and business ethics, and always strive to
enhance the reputation and performance of the Company.

A Code of Business Conduct has been established which is
applicable to each of the following:

• Directors

• Chief Executive Officer / Managing Director

• Chief Financial Officer

• Chief Operating Officer

•

Senior Executives

Employees

The Code of Business Conduct has been approved by the Board
and given their full support.

The Code of Business Conduct addresses:

• Responsibilities to shareholders and customers.

•

“The TechnologyOne Way”, which refers to the success of the
Company coming from our shared values, our entrepreneurial
spirit and innovation.

Employment practices (including diversity, inclusiveness,
anti-discrimination, workplace health and safety).

• Responsibilities to the community.

• Responsibilities to the individual.

• Compliance with the codes.

In addition, all employees have employment agreements, which
include job descriptions that describe their duties, rights and
responsibilities.

In conjunction with the Code of Business Conduct,
TechnologyOne has developed a Whistleblower Policy, Modern
Slavery Policy, Supply Chain Policy and Bribery & Corruption
Policy. The Whistleblower Policy encourages employees to come
forward with concerns that the entity is not acting lawfully,
ethically or in a socially responsible manner and provides
suitable protections if they do. The Board will be informed of
any material concerns raised that call into question the culture
of TechnologyOne or have been raised under the Bribery &
Corruption Policy. The Whistleblower Hotline is facilitated by an
external, independent third party and they provide translation
services for those where English is not their primary language.

The Board is informed of any material breaches of the Code of
Business Conduct by a Director or Senior Executive and of any
other material breaches of the code that call into question the
culture of the organisation.

118

Diversity Policy
TechnologyOne has an inclusive Diversity Policy which covers the
broader dimension of diversity covering aspects of gender, age,
disability, ethnicity, marital or family status, religious or cultural
background, sexual orientation and gender orientation within the
total organisation, including the Board, and senior management.
In conjunction with this policy, the Company has measurable
objectives which are assessed and reported in the annual report.

The Board has developed and has oversight of the following
diversity objectives:

•

Ensuring compliance with the published Diversity Policy.

• Not less than 30% of the Board to be of each gender by 2025

(to allow for the Board transition)

•

70% of all vacant roles are to have at least one female
candidate shortlisted.

• Maintain reporting measures that are in compliance with both
the ASX guidelines and Workplace Gender Equality Agency.

• Continue to identify employee feedback mechanisms through
the review of existing forums and information provided as
well as the identification of appropriate new mechanisms for
employee consultation.

• Maintain existing educational programs that support diversity

including but not limited to induction, on boarding and
leadership programs.

The diversity of TechnologyOne remains fundamental to our
ongoing success. TechnologyOne has established a Diversity
Policy which reflects the Company’s commitment to providing an
inclusive workplace.

A summary of the Diversity Policy is following:

• Diversity is one of TechnologyOne’s strengths. TechnologyOne
values this diversity and recognises the individual contribution
our people can make and the opportunity for innovation such
diversity brings.

•

TechnologyOne believes that we will achieve greater success
by providing our people with an environment that respects
the dignity of every individual, fosters trust, and allows every
person the opportunity to realise their full potential.

TechnologyOne is committed to providing an inclusive
workplace and our commitment to diversity extends to our
interactions with customer and suppliers.

TechnologyOne’s remuneration policy includes a commitment
to equal pay for men and women. We conduct a gender pay
gap analysis annually, following which we investigate any
potential gender bias in performance pay, and correct
like-for-like gaps.

The Company’s 2023 Workplace Gender Equality Agency report
can be found on the ‘Corporate Governance’ section of the
Company’s website.

TechnologyOne continues its strong support for the involvement
of women in the technology sector, including building on strong
relationships with groups such as Women in Digital and being the
proud sponsors of the Women in Digital Transformation Leader of
the Year award.

TechnologyOne has policies in place in relation to
anti-discrimination, workplace gender equality, diversity, sexual
harassment, flexible working arrangements and paid parental
leave.

Further details are available in the TechnologyOne Sustainability
Report, published on the Company website each year.

TechnologyOne Annual Report 20237.2

Safeguard Integrity in Financial Reporting

7.4 Risk Assessment Management

The Company has adopted an active approach to risk
management and the Board recognises that the Company’s
participation in commercial and operational activities require a
certain level of risk. As such, the Board has delegated the risk
management function to the management of the Company with
oversight by the Audit & Risk Committee. A standing Item has
been included in the Audit & Risk Committee agenda to consider
the Enterprise Risk Register.

The Board has received assurance from the Chief Executive
Officer and Chief Financial Officer that the declaration provided
in accordance with section 295A of the Corporations Act is
founded on a sound system of risk management and internal
control and that the system is operating effectively in all material
aspects in relation to the financial reporting risks.

The risk appetite of the Company considers the level of risk and
risk combinations that the Board is prepared to take to achieve
strategic objectives together with the level of risk shock that the
Company is able to withstand.

The Company performs risk reviews at least semi-annually and
has identified several key risk categories for the business.

Material Risks

Cyber Risk

TechnologyOne has successfully completed the Information
Security Registered Assessors Program (IRAP) assessment for
PROTECTED classified data. This provides our SaaS customers
with an increased cyber security posture and greater certainty
in a constantly evolving cyber security landscape. This was
achieved by leveraging the strong compliance and security
foundations established over recent years and is a testament
to TechnologyOne’s mature security practices, accountability
mechanisms and belief in continuous assessment and
improvement.

The Company has a robust data security and privacy program
developed to meet the requirements set out in Australia’s
Privacy Amendments (Notifiable Data Breaches) Act 2017, UK
Data Protection Act 2018 (DPA Act) and the EU General Data
Protection Regulation. This program ensures security is considered
throughout the day-to-day operations of the Company and
is backed by an independently verified process for dealing
promptly with matters should they arise. The Company also is
certified to the standards required in ISO27000, ISO9001, SOC1,
SOC2 and SOC3 (Service Organisation Controls).

The Company has established a structure of reviews and
authorisations designed to ensure the truthful and factual
presentation of the Company’s financial position. This includes:

•

The establishment of an Audit & Risk Committee, and the
review and consideration of the accounts by the Audit &
Risk Committee.

Process to ensure the independence and competence of the
Company’s external auditors.

• Requirement that the CEO and CFO state in writing to the
Board that the Company’s financial reports present a true
and fair view in all material respects of the Company’s
financial condition; operational results are in accordance with
the relevant accounting standards and the Company’s Risk
Management and Internal Compliance and Control System is
operating efficiently and effectively in all material respects.

•

Ensuring that the Company’s external Auditor attends the
Company’s Annual General Meeting each year.

• Verification of statements and data supplied in the annual
Directors’ report and other corporate reports to ensure that
the releases to the market are accurate, balanced and
understandable and provide investors with appropriate
information to make informed investment decisions.

• Disclosure of the annual tax transparency statement.

The Company put the external audit services to tender in 2020
which is another example of how the Company expresses its
dedication to ensuring integrity of the financial reporting is
maintained.

7.3 Continuous Disclosure

The Company Secretary working closely with the Board Chair,
CEO and CFO have been delegated responsibility for the
continuous disclosure of information to the market, to ensure:

• All investors have equal and timely access to material

information concerning the Company, including its financial
position, performance, ownership and governance.

• Company announcements are factual and presented in a

clear and balanced way, requiring the disclosure of both
positive and negative information.

• When analysts are briefed on aspects of the Company’s

operations, the market is forewarned, and the materials
used in such presentations are also released to the ASX
and posted on the Company’s website.

• Any information that a reasonable person would expect to

have a material effect on the price or value of the Company’s
share price (as per Listing Rule 3.1) is immediately notified to
the ASX.

The Company has established a documented procedure to
handle continuous disclosure requirements. Directors are provided
with copies of all announcements made under listing rule 3.1
promptly once made.

119

Making life simple for our communityCorporate Governance Statement

7 Corporate Governance Principles & Recommendations (continued)
7.4 Risk Assessment Management (continued)

People Risk

Software Risk

The Company needs to ensure we attract, retain, develop
and foster the talent, skills and knowledge needed to deliver
ambitious goals.

The Company manages people risk through:

•

Education of the Company’s mission, values and purpose.

• Career progression and succession, remuneration and

achievement and reward initiatives.

• Wellbeing initiatives – physical, mental, and financial

(including provision of an Employee Share Plan and gym
facilities for employees).

•

Leadership training and coaching.

• eNPS surveys and retention / turnover reporting and analysis.

•

Promotion of the success of the Company internally and
externally.

• Alignment of education of the Company’s and departmental

strategies, and empowerment to deliver.

• Graduate, intern and global mobility program.

The Board is provided with a summary of these initiatives at each
board meeting.

Building the Future Risk

The Company sets ambitious goals for its future growth which are
delivered on through:

• Alignment and education of the Company’s and department

strategies and empowerment to deliver.

•

Product success, Practice Management, Customer Success
Teams, and tribes and ‘Brains Trust’ groups established.

• Ongoing and frequent engagement with customers and user

The Company has a rigorous product development process that
reviews Software Release management, including resourcing and
development issues.

Insurance Risk

The Audit & Risk Committee reviews the Company’s insurance
requirements on an annual basis and compares this to the
level of cover provided to ensure it is adequately covered. A
recommendation is then provided to the Board for the placement
of the Company’s insurance policies.

Project Risk

The Board requires the Chief Executive Officer / Managing
Director to report on any customer implementation project that
may be at significant risk of either incurring substantial penalties
or incurring substantial over-runs. In addition, the Company has
established a Customer Experience Team that reviews current
projects and consulting activities to provide an early detection
mechanism to ensure that any activities that pose a significant
risk to the Company are identified and resolved before exposing
the Company to potential liabilities.

Sustainability Risk

The Company believes that it does not have material exposure
to specific economic, environmental, or social sustainability risks
due to controls implemented. However, the company recognises
the importance of these to its stakeholders and has developed
a Sustainability Report to outline the Company’s position and
initiatives across several sustainability risks.

The Sustainability Report provides the Company’s initiatives
and targets on items including:

groups and early adopter programs.

• Diversity

• Continuous investment in R&D and ‘tribal days’ including

• Customer satisfaction

Hack Day.

• Ongoing monitoring of operating environment and

competitors.

Other Risks

The Company’s focus on risk management is primarily conducted
through the Audit & Risk Committee, with a number of identified
areas of specific risks as follows:

Contract Risk

The Company has established a Contract Approval Process that
reviews all proposed new contracts with non-standard terms
prior to signing to ensure the contracts can be fulfilled, the risks
are known and can be managed, and that the contract can be
completed profitably without exposing the Company to ongoing
liabilities.

Financial Risk

The Chief Financial Officer, in conjunction with the Chief Executive
Officer / Managing Director, review the Company’s financial
exposure with a particular focus in the area of Outstanding
Debtors, with oversight by the Board.

•

Employee satisfaction

• Corporate culture

•

Ethical business practices

Supply chain

• Community support

•

Environmental sustainability practices

The Company has engaged external subject matter experts to
assist in the preparation of environmental risk reporting aligned
with the Taskforce for Climate-related Financial Disclosure (TCFD)
recommendations. The Board acknowledges that climate change
is both an environmental and economic issue. TCFD disclosures
are now provided in the Financial Statements and in the annually
published Sustainability Report.

Suppliers to TechnologyOne are expected to comply with all
applicable local, national and international laws and regulations,
including in relation to bribery and corruption, modern slavery and
ethical conduct. TechnologyOne undertakes due diligence of all
new suppliers and has initiated an annual supplier attestation
process to ensure our suppliers continue to comply.

The Sustainability Report is available on the Company’s website.

120

TechnologyOne Annual Report 20237.5 Accounting Standards and Company Policies

7.6 Remuneration Principles

Adhering to Accounting Standards and Company Policies,
and the appropriate interpretation of such policies/standards, is
seen as critical to managing the financial risk of TechnologyOne.
Accounting Standards and Company policies are reviewed
on a regular basis by the Audit & Risk Committee working
in conjunction with the Auditors, and recommendations for
adoption/change are made to the Board. Compliance with
Accounting Standards and Company policies are included as
part of the Auditors annual review.

Internal Controls and Compliance

The Company has an internal control framework that consists of:

• Written policies and procedures.

• Division of responsibilities to ensure appropriate segregation

of duties.

• Careful selection of high calibre well qualified staff.

TechnologyOne undertakes Internal Audits in accordance with
the Internal Audit schedule as approved by the Audit & Risk
Committee. These audits are undertaken by the Governance,
Risk & Compliance Team and reported directly through to the
Audit & Risk Committee. The scope of the Internal Audits includes
evidencing the responses to the semi-annual Management
Attestations, ensuring the controls listed in the Enterprise Risk
Register are operational, confirming findings from the previous
audit are complete and to ensure that company-wide processes
are being complied with.

Independent auditors are engaged to review the Company’s
internal controls and compliance and to provide a report to the
Audit & Risk Committee. The Audit & Risk Committee oversees
the Company’s compliance program with relevant international
standards (including ISO 9001, 27001, 27017 and 27018, SOC 1, 2
& 3. IRAP and UK Cyber Essentials).

The Company has established Practice Management teams in
each business area to undertake reviews of compliance with
certain operational policies and procedures. Each Practice
Management Team provides quarterly reporting of their findings
to the Audit & Risk Committee. An independent audit of the
Practice Management reviews is undertaken by the Internal
Audit team annually.

TechnologyOne believes in the full disclosure of remuneration of
its Directors and Key Management Personnel to the market, on
at least an annual basis. Disclosure includes all monetary and
non-monetary remuneration including salary, fees, non-cash
benefits, bonuses or profit share accruing each year irrespective
of payment, superannuation contributions, entitlements at
termination or retirement, value of shares or options issued and
sign-on payments.

As a matter of principle, TechnologyOne has adopted the
following guidelines to motivate Directors and Senior Executives
to pursue long-term growth, and ensure their interests and those
of the shareholders are closely aligned:

• Remuneration packages should be set in the context of what

is reasonable and fair, considering the Company’s legal and
industrial obligations, labour market conditions, the scale of
the business and competitive forces.

• Non-Executive Directors should be remunerated solely on the

basis of a cash payment, plus superannuation contributions
as required by law. Non-Executive Directors should not be
provided with bonuses, options, performance rights or loans.
They should not participate in schemes designed for the
remuneration of Senior Executives. The Company does not
provide a Director’s Retirement Plan.

• Non-Executive Directors will not be provided termination or

retirement payments other than statutory superannuation.

• Company Senior Executives (including Executive Directors)

should be provided with a significant component of their
expected salary on “an at-risk basis”, tied to the Company’s
profit target. Shares, Options or Performance Rights may
also be provided as part of the “at risk component”, but
these must be tied to performance hurdles. The performance
hurdles are to be reasonable, objective and measurable.
Vesting of securities is also subject to malus provisions.

•

Termination payments should be agreed in writing and in
advance if any are to be provided.

121

Making life simple for our communityCorporate Governance Statement

7 Corporate Governance Principles & Recommendations (continued)
7.7

Trading in Company Securities

Performance Evaluation

7.8

Board

The Board meets annually for the purpose of reviewing
and evaluating the performance of the Board as a whole, each
Committee, key Executives and each Director individually in
meeting key responsibilities and achieving its objectives.

The following areas were considered by the Board in its 2023
annual review:

•

Performance evaluation of Directors and Senior Executives.

• Review of skills and experience of the Board for current
operations of the Company and identification of any
shortfalls.

• Board Chair, Director and CEO succession planning.

• Review of each Director’s independence status.

• Review of skills matrix to ensure relevance of required skills.

To assist the Board in maximising its effectiveness, the Board
and Nomination & Governance Committee have a skills matrix to
provide objective information about each Director and the Board
during the past year.

Each Director is encouraged to discuss any issue concerning
Board performance with the Board Chair at any time.

Directors are encouraged to maintain and improve their
knowledge, skills and expertise through briefings, seminars and
attending professional development programs.

Remuneration of the Board is assessed every three (3) years
against comparative data for Australian publicly listed companies
supplied by an independent consultant and reported to the
Remuneration Committee. The relative risk, time, effort, complexity
of the underlying business, competency of the management
team, financial performance and track record, clarity of strategy
as well as the number of Board meeting required to oversee the
business are used as benchmarks to determine the appropriate
level of Director’s fees. For years where a formal assessment of
remuneration is not conducted, the Director’s fees are increased
by the Australian Consumer Price Index (CPI).

Senior Executives

The performance of Senior Executives is reviewed and
evaluated annually by a combination of the Company’s
internal performance management program and as part of the
formal remuneration review that is conducted annually by the
Remuneration Committee.

The Directors have resolved to adopt the following policy in
relation to trading by Directors and Officers in the Company’s
shares.

•

The Directors and Senior Executives will not engage in
Short-Term trading of the Company’s shares.

The Directors and Senior Executives will not buy or sell shares
at a time when they possess information which, if disclosed
publicly, would be likely to materially affect the market price
of the Company’s shares. Information is not considered to be
generally available until a reasonable time has elapsed to
allow the market to absorb these announcements.

The Directors and Senior Executives are not permitted to use the
Company’s shares as security for margin loans. To assist Directors
and Senior Executives in abiding by these principles Trading
Windows have been established, relating to when Directors and
Senior Executives can buy and sell the Company’s shares. These
Trading Windows are open for 50 days following the full and half
year result releases.

At all times, the Director or Senior Executive must notify the Board
(as a minimum the Board Chair) in advance of any intended
transactions involving the Company’s shares. It is recognised that
there may be circumstances where it may not be appropriate for
Directors and Senior Executives to buy and sell within the above
Trading Window in the event the Company is involved in strategic
initiatives (such as acquisitions), which could materially affect the
market price of the Company’s shares.

The Directors and Senior Executives must advise the Company
Secretary of any completed trades immediately once each
transaction is done. This will allow the Company Secretary
sufficient time to notify the ASX of the change in shareholding
within the required period.

A register of Director’s holdings is made available for inspection
at every Board meeting.

This policy applies to Directors and Senior Executives (including
their nominee companies) and the entities which they control.

For the purpose of this Policy, Senior Executive is deemed to
include the following parties:

(a) persons named by the Chief Executive Officer / Managing

Director from time to time who may be involved in
strategic issues

(b) persons named by the Chief Executive Officer / Managing

Director from time to time who are involved in
financial reporting

(c) Senior Executives of the Company as defined as Officers
in section 9 of the Corporations Act being: ‘any person by
whatever name called who is concerned or takes part in the
management of the Company’.

In addition to the policy for Directors and Senior Executives, all
employees are reminded of the Insider Trading provisions of the
Corporations Act. Staff are reminded of their obligations during
the Trading Windows.

122

TechnologyOne Annual Report 20237.9

Shareholders’ Rights and Communication

The Board of Directors aim to ensure that shareholders are
informed of all major developments affecting the Company’s
state of affairs. The information is communicated to shareholders,
and forms part of the Company’s two-way investor relations
program:

• By ensuring that all shareholders can elect to receive

information and communications from the Company’s share
registry either physically or electronically and can update
their preferences through the share registry.

• By the Annual Report being distributed to all shareholders.
The Board ensures the Annual Report contains all relevant
information about the operations of the Company during the
financial year, together with details of future developments
and other disclosures required under the Corporations Act
2001.

• By publishing its Notice of Meeting and Explanatory

Memorandum for each Annual General Meeting (AGM) or
other such meetings as required from time to time.

• By encouraging shareholders to attend and participate in the

Company’s Annual General Meeting.

• By encouraging shareholders to participate in proxy voting
should they be unable to attend the Company’s AGM.

• By enabling shareholders to pose questions to the Company
in the lead up to the AGM for responding during the meeting.

• By facilitating polls for each resolution voted during an AGM.

•

By the Half Year results released to the market;

• By disclosures forwarded to the ASX under the Company’s

continuous disclosure obligations.

•

Through the Company’s website, under a special area called
Investor Relations.

• By the Company’s participation in scheduled briefings with

institutional shareholders and security analysts.

• By the participation of the Company’s Auditors and Solicitors

at the AGM.

TechnologyOne held its inaugural hybrid technology AGM in
February 2023 with favourable feedback from its shareholders.
TechnologyOne informed its shareholders at that meeting that it
will continue to utilise this hybrid technology whenever possible
for future AGMs, to encourage shareholder participation for
those unable to attend in person. TechnologyOne does value the
opportunity to meet with our shareholders face-to-face so will
continue to offer that also for AGMs.

All information communicated by the Company is in accordance
with its continuous disclosure requirements under ASX Listing
Rule 3.1.

Legislative changes to the Corporations Act 2001 (Cth) effective
from 1 April 2022, means that companies are no longer
required to send shareholder communications by mail unless
specifically requested.

TechnologyOne aims to continually reduce our carbon emissions
and to maintain carbon-neutrality, while continuing to provide
effective communications to shareholders. By no longer
sending shareholder communications by mail as the default
position, we save time and cost, and it helps reduce our carbon
footprint. Shareholders can still elect to receive some, or all,
communications by mail if they choose.

Shareholders are encouraged to review or update their
communication preferences through the Company’s share registry
provider. Contact details are available on the Company’s website
through the Investor Relations area.

8 ASX Corporate Governance

Principles and Recommendations
4th Edition Compliance
The Company has complied with all the recommendations
outlined in the Corporate Governance Principles and
Recommendations 4th Edition.

123

Making life simple for our communityVoluntary Tax Transparency Report
Voluntary Tax Transparency Report

TechnologyOne has a strong commitment to transparency
and compliance. TechnologyOne supports the objectives of the
Government and the Board of Taxation to provide stakeholders
with additional information and confidence that a company is
compliant with their statutory obligations.

The information provided complies with the standard of
disclosure expected of ‘large businesses’ under the Voluntary
Tax Transparency Code.

The requirements of the Code are broken into Part A, which forms
part of the tax notes as referenced below and Part B as disclosed
below. The make-up of the respective parts is as follows:

(a) Part A:

•

Effective company tax rates for our Australian and global
operations (Note 7). The effective tax rate of the Australian
Group for FY23 is 21%

• A reconciliation of accounting profit to tax expense and to

income tax payable (Note 7)

•

Identification of material temporary and non-temporary
differences (Note 7)

(b) Part B

•

Tax policy, tax strategy and governance

Information about international related party dealings

International related party dealings

TechnologyOne seeks to ensure all intercompany transactions are
undertaken in accordance with the arm’s length principle.

TechnologyOne has an Advanced Pricing Arrangement (APA) with
the Australian Taxation Office.

As an Australian headquartered company, we have created
and maintained significant intellectual property in Australia
which has been successfully utilised in our overseas operations.
Our engagement with the ATO through the APA process, seeks
to ensure Australia receives a commercial return for the use of
intellectual property by our overseas businesses. These returns
are taxable in Australia.

In addition, loans are made to and received from foreign
controlled entities for short-term, medium-term and long-term
funding requirements. As a large global group, these transactions
assist with managing cash flow and funding requirements.

Tax Contribution Summary

Below is a summary of the taxes paid, collected and remitted by
TechnologyOne to the relevant revenue authorities during the
financial year ended 30 September 2023.

Year ended 30 September 2023

Consolidated
Global Group AUD

• A tax contribution summary of income tax paid.

Corporate income taxes

Information in relation to the year ended 30 September 2023 is
set out below.

Our Approach to Tax

Fringe benefit taxes

Payroll taxes

Net GST/VAT taxes

TechnologyOne has a tax governance framework which has been
approved by the Board. Tax falls under the oversight of the
Audit and Risk Committee.

Employee taxes remitted

Total

16,425,205

1,021,940

9,502,510

44,673,070

62,337,444

133,960,169

Tax is one of a broad range of commercial factors that is
taken into account when assessing and undertaking
investment activities.

TechnologyOne is conservative in its approach to tax risk.
TechnologyOne aims to achieve full compliance with tax
obligations in each tax jurisdiction in which it operates. In
accordance with its commitment to best practice corporate
governance and a culture of excellence, TechnologyOne will not
enter into any arrangements that may be regarded as
tax evasion.

The Tax Risk Governance Policy includes a framework for the
internal escalation process for referring matters to the CFO.
The CFO must report any material tax issues to the Board.
TechnologyOne will not pursue aggressive tax positions or
strategies or adopt positions that are not able to be supported
or defended in a court of law. Where the tax law is unclear or
subject to interpretation, advice is obtained and when necessary,
the Australian Taxation Office (ATO) (or other relevant tax
authority) is consulted to ensure certainty.

TechnologyOne has a strong history of compliance and an
open engagement with relevant tax authorities. We seek
to be co-operative and transparent and to maintain
collaborative relationships.

124

TechnologyOne Annual Report 2023Financial Report

Contents

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

126

127

128

129

130

125

Making life simple for our communityFinancial Statements
Financial Statements

Consolidated income statement
Consolidated income statement
For the year ended 30 September 2023

Notes

30‑Sep‑23
($’000)

30‑Sep‑22
($’000)

Revenue - SaaS and continuing business

Revenue - Legacy licence business

Revenue from contracts with customers

Other income

Total Revenue

Variable costs

Variable customer SaaS costs

Total variable costs

Occupancy costs

Corporate costs

Depreciation and amortisation

Computer and communication costs

Marketing costs

Employee costs

Share-based payments

Finance expense

Total operating costs

Profit before income tax

Income tax expense

Profit for the year

Basic earnings per share

Diluted earnings per share

The above consolidated income statement should be read in conjunction with the accompanying notes.

Consolidated statement of comprehensive income

For the year ended 30 September 2023

Profit for the year (from above)

OTHER COMPREHENSIVE INCOME

Items that may be reclassified to profit or loss

Exchange differences on translation of foreign operations

Other comprehensive income/(loss) for the period, net of tax

Total comprehensive income for the period

426,379

2,999

429,378

11,985

441,363

(21,031)

(34,863)

(55,894)

(3,304)

(32,305)

(53,502)

(9,715)

(13,724)

(135,115)

(5,827)

(2,123)

358,668

9,566

368,234

1,157

369,391

(20,701)

(26,350)

(47,051)

(2,539)

(20,370)

(38,110)

(10,458)

(8,685)

(124,661)

(3,353)

(1,844)

(255,615)

(210,020)

129,854

(26,978)

102,876

Cents

31.71

31.54

112,320

(23,477)

88,843

Cents

27.51

27.38

30‑Sep‑23
($’000)

30‑Sep‑22
($’000)

102,876

88,843

3,500

106,376

(3,196)

85,647

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

126

TechnologyOne Annual Report 2023

Consolidated statement of financial position
As at 30 September 2023

Notes

30‑Sep‑23
($’000)

30‑Sep‑22
($’000)

ASSETS

Current assets

Cash and cash equivalents

Financial assets

Prepayments

Trade and other receivables

Contract assets

Other current assets

Contract acquisition costs

Total current assets

Non‑current assets

Property, plant and equipment

Right-of-use assets

Intangible assets

Capitalised development

Deferred tax assets

Contract assets

Contract acquisition costs

Total non‑current assets

Total assets

LIABILITIES

Current liabilities

Trade and other payables

Provisions

Contingent consideration

Deferred revenue

Current tax liabilities

Lease liability

Total current liabilities

Non‑current liabilities

Provisions

Other non-current liabilities

Lease liability

Total non‑current liabilities

Total liabilities

Net assets

EQUITY

Contributed equity

Other reserves

Retained earnings

Total equity

198,265

25,000

25,151

62,416

22,891

1,127

9,576

175,865

20,379

57,266

21,540

600

6,505

344,426

282,155

13,315

22,641

59,510

148,618

21,382

3,618

23,227

292,311

636,737

49,247

21,277

‑

214,495

9,923

8,894

303,836

2,565

24,262

26,895

330,731

306,006

67,466

99,604

138,936

306,006

8,505

23,110

59,452

126,909

21,060

4,881

13,873

257,790

539,945

48,559

20,902

6,997

184,008

2,784

7,897

271,147

2,200

27,407

29,701

300,848

239,097

57,635

81,875

99,587

239,097

127

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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Financial Statements

Consolidated statement of changes in equity
For the year ended 30 September 2023

Contributed
equity
($’000)

Retained
earnings
($’000)

Dividend
reserve
($’000)

Note

FOREX
reserve
($’000)

Share option
reserve
($’000)

Total equity
($’000)

Balance as at 1 October 2022

57,635

41,455

(1,238)

41,658

239,097

9,831

(63,527)

67,466

138,936

6,922

48,377

2,262

48,965

306,006

Balance as at 1 October 2021

51,645

32,454

1,958

38,305

190,234

Profit for the period

Exchange differences on translation of reserves

Total comprehensive income for the period

Dividends paid

Transfer to dividends reserve

Exercise of share options

Employee share-based compensation

Share based payments

Tax impact of share trust

Balance at 30 September 2023

Profit for the period

Exchange differences on translation of reserves

Total comprehensive income for the period

Dividends paid

Transfer to dividends reserve

Exercise of share options

Share based payments

Tax impact of share trust

Balance at 30 September 2022

‑

3,500

99,587

102,876

(56,605)

(63,527)

63,527

‑

8,139

1,692

‑

244

3,907

3,156

7,307

102,876

3,500

106,376

(56,605)

8,139

1,936

3,907

3,156

(39,467)

‑

3,353

88,843

(3,196)

85,647

(46,127)

5,990

3,353

(36,784)

‑

5,990

65,872

88,843

‑

(3,196)

(46,127)

(55,128)

55,128

5,990

(55,128)

57,635

99,587

9,001

41,455

(1,238)

41,658

239,097

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

128

TechnologyOne Annual Report 2023

Consolidated statement of cash flows
For the year ended 30 September 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers (inclusive of GST)

Payments to suppliers and employees (inclusive of GST)

Interest received

Net income taxes paid

Interest paid

Net cash inflow / (outflow) from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment

Payments for development expenditures and intangibles

Payments for investment in short-term deposits

Net cash inflow / (outflow) from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options

Principal repayments of lease liabilities

Dividends paid to shareholders

Net cash inflow / (outflow) from financing activities

Net increase / (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Effects of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the period

Notes

30‑Sep‑23
($’000)

30‑Sep‑22
($’000)

501,247

(292,567)

3,536

(16,434)

(2,123)

193,659

(7,770)

(82,356)

(25,000)

(115,126)

8,139

(7,757)

(56,605)

(56,223)

22,310

175,865

198,265

413,885

(251,407)

423

(18,339)

(1,844)

142,718

(3,767)

(63,515)

(67,282)

5,920

(3,652)

(46,127)

(43,859)

31,577

144,210

175,865

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

129

Making life simple for our community

Notes to the consolidated
Notes to the consolidated
financial statements
financial statements
1

Summary of significant accounting policies

The financial report of Technology One Limited (the Company) for the year ended 30 September 2023 was authorised for issue in
accordance with a resolution of Directors on 20 November 2023.

Technology One Limited (the Company) is a company limited by shares incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange.

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have
been consistently applied to all the periods presented, unless otherwise stated. The financial statements are for the consolidated
entity consisting of Technology One Limited and its subsidiaries. The nature of the operations and principal activities of the Group are
described in the Directors' report.

(a) Basis of preparation

(b) Principles of consolidation

(i) Subsidiaries

The consolidated financial statements incorporate
the assets and liabilities of all subsidiaries of
Technology One Limited ('Company' or 'parent entity') as
at 30 September 2023 and the results of all subsidiaries
for the year then ended. Technology One Limited and its
subsidiaries together are referred to in this financial report as
the 'Group' or the 'Consolidated entity'.

Intercompany transactions, balances and unrealised
gains on transactions between companies are eliminated.
Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies
adopted by the Group.

(ii) Employee Share Trust

The Group has formed a trust to administer the Group's
employee share scheme. This trust is consolidated, as the
substance of the relationship is that the trust is controlled by
the Group. At 30 September 2023, the Group had
161,813 treasury shares (2022: 260,813).

Treasury shares are shares in the Group that the Employee
Share Trust holds for the purpose of transferring shares under
the TechnologyOne employee share scheme.

The financial report is a general-purpose financial report
prepared by a for profit entity, which has been prepared in
accordance with the requirements of the Corporations Act
2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board.

The financial report is presented in Australian dollars and all
values are rounded to the nearest thousand dollars ($000) unless
otherwise stated.

The accounting policies adopted are consistent with those of
the previous financial year as no new or amended Standards or
Interpretations were applicable in the current year.

Certain comparative items have been reclassified in the financial
statements to align with the 30 September 2023 year end disclosures.

(i) Compliance with IFRS

This financial report also complies with International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.

(ii) New accounting standards and interpretations

The accounting policies adopted are consistent with those of
the previous financial year.

(i)

Issued but not yet effective

No new standards or amendment to an existing Standard have
been issued that will have a material impact to the Group.

(ii) Critical accounting estimates

The preparation of financial statements requires the use
of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of
applying the Group's accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial
statements, are disclosed in note 3.

130

TechnologyOne Annual Report 2023(iii) Business combination and goodwill

Business combinations are accounted for using the acquisition
method under AASB 3 Business Combinations. The cost of an
acquisition is measured as the aggregate of the consideration
transferred, which is measured at acquisition date fair value,
and the amount of any non-controlling interests in the
acquiree.

For each business combination, the Group elects whether
to measure the non-controlling interests in the acquiree at
fair value or at the proportionate share of the acquiree’s
identifiable net assets. Acquisition-related costs are expensed
as incurred and included in administrative expenses.

When the Group acquires a business, it assesses the financial
assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms,
economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded
derivatives in host contracts by the acquiree.

Any contingent consideration to be transferred by the
acquirer will be recognised at fair value at the acquisition
date. Contingent consideration classified as equity is not
remeasured and its subsequent settlement is accounted for
within equity. Contingent consideration classified as an asset
or liability that is a financial instrument and within the scope
of AASB 9 Financial Instruments, is measured at fair value
with the changes in fair value recognised in the statement of
profit or loss in accordance with AASB 9. Other contingent
consideration that is not within the scope of AASB 9 is
measured at fair value at each reporting date with changes
in fair value recognised in profit or loss.

Goodwill is initially measured at cost (being the excess of the
aggregate of the consideration transferred and the amount
recognised for non-controlling interests and any previous
interest held over the net identifiable assets acquired and
liabilities assumed). If the fair value of the net assets acquired
is in excess of the aggregate consideration transferred, the
Group re-assesses whether it has correctly identified all of
the assets acquired and all of the liabilities assumed and
reviews the procedures used to measure the amounts to be
recognised at the acquisition date. If the reassessment still
results in an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then the gain is
recognised in profit or loss. After initial recognition, goodwill is
measured at cost less any accumulated impairment losses.

For impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to each
of the Group’s cash-generating units that are expected to
benefit from the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to those units.
Where goodwill has been allocated to a cash-generating unit
(CGU) and part of the operation within that unit is disposed
of, the goodwill associated with the disposed operation
is included in the carrying amount of the operation when
determining the gain or loss on disposal. Goodwill disposed
in these circumstances is measured based on the relative
values of the disposed operation and the portion of the
cash-generating unit retained.

(i)

Functional and presentation currency

Items included in the financial statements of each of the
Group's operations are measured using the currency of
the primary economic environment in which the entity
operates ('the functional currency'). The consolidated financial
statements are presented in Australian dollars,
which is Technology One Limited's functional and
presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and
losses resulting from the settlement of such transactions and
from the translation at year end exchange rates of monetary
assets and liabilities denominated in foreign currencies are
recognised in the income statement.

(iii) Group companies

The results and financial position of foreign operations
(none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the
presentation currency are translated into the presentation
currency as follows:

• Assets and liabilities for each statement of financial

position presented are translated at the closing rate at
the date of that statement of financial position

•

Income and expenses for each income statement
and statement of comprehensive income are translated
at average exchange rates (unless this is not a
reasonable approximation of the cumulative effect of
the rates prevailing on the transaction dates, in which
case income and expenses are translated at the dates
of the transactions)

• All resulting exchange differences are recognised in

other comprehensive income.

131

Making life simple for our communityNotes to the consolidated
financial statements
1

Summary of significant accounting policies (continued)

(d) Revenue recognition

2. Annual Licence Fees

The Group has the following key revenue categories:

SaaS Fees

Annual Licence Fees

3. Consulting Services

Initial Licence Fees

The accounting policies for each of these categories has been
set out below:

Revenue categories

SaaS Fees

Revenue from term SaaS contracts are recognised on a daily
basis over the term of the contract. Included within this category
is revenue from contracts for annual SaaS licences as well as
Platform services associated with initial licence fees. The Group
considers that SaaS licence contracts represent a right to
access the Group’s licenced intellectual property and as such
the performance obligation is fulfilled over the contract term.

Payment terms in respect of SaaS Fees are typically annual
within 14 to 30 days of invoice. Invoiced amounts are reflected
in trade and other receivables until paid.

Unsatisfied performance obligations in respect of SaaS Fees
received or receivable are recognised as deferred revenue in
the consolidated statement of financial position. Refer to
note 17 for details of deferred revenue.

Costs incurred in obtaining the customer contract are expensed,
unless they are incremental to obtaining the contract and the
Group expects to recover those costs. Costs that meet the
criteria for capitalisation will be amortised over the life of the
contract that they relate to. The Group has identified certain
commission costs as meeting the criteria of directly related
contract costs. These costs are capitalised in the month in which
they are incurred and amortised over an average contract term
of 5 years. The movement in the year and the closing balance
of this asset is disclosed within note 14 as ‘contract acquisition
costs’. This balance is presented as ‘contract acquisition costs’ in
the statement of financial position.

Revenue from Annual Licence Fees are recognised daily
over the term of the contract. The Group considers that
the performance obligation in respect of these services is
satisfied over time.

Payment terms in respect of Annual Licence Fees are typically
annual within 14 to 30 days of invoice. Invoiced amounts are
reflected in trade and other receivables until paid.

Unsatisfied performance obligations in respect of Annual
Licence Fees received or receivable are disclosed as deferred
revenue in the consolidated statement of financial position.
Refer to note 17 for details of deferred revenue.

3. Consulting Services

Consulting services includes services for software and project
services revenue.

Revenue from these services is recognised as services are
rendered, typically in accordance with the achievement of
contract milestones and/or hours expended.

Initial licence fees

Initial licence fees includes both perpetual licence fees and
subscription term licences and are recognised on provision of
the software. The Group considers that such contracts represent
a right to use the Group’s licenced intellectual property and as
such the performance obligation is fulfilled at the point in time at
which the customer receives the licence key.

Payment terms in respect of Initial Licence Fees are typically
within 14 to 30 days of invoice. Invoiced amounts are reflected
in trade and other receivables.

Perpetual licence fees are typically invoiced upfront on
signing the contract but subscription term licences are billed
annually throughout the subscription period.

As the performance obligation is satisfied at a point in time
(i.e. at contract delivery), there are no unsatisfied performance
obligations in respect of Initial Licence Fees.

The Group considers the effects of variable consideration,
reviews the contracts to identify if a significant financing
component exists and considers the standalone pricing of the
initial licence fees when allocating the transaction price of the
contract to the performance obligation.

132

TechnologyOne Annual Report 2023Associated contract balances

Consistent with AASB 15 Revenue from Contracts with
Customers, the timing of revenue recognition, customer
invoicing and cash collections results in the recognition of
trade and other receivables, contract asset and deferred
revenue (contract liability) on the Group’s Consolidated
statement of financial position. As deferred revenue
represents payments received or receivable in advance from
customers for SaaS Fees and Annual Licence Fees which will
be recognised in future periods, and not a future cash outflow,
this balance does not impact the Group’s ability to meet its
short-term obligations as and when they fall due.

Revenue Groups disclosed in the consolidated
income statement

The Group has the following revenue groups:

Revenue – SaaS and continuing business

The Group defines continuing business as those revenue streams
that form part of the growth strategy. Namely this includes SaaS
fees, Annual Licence Fees and Consulting Services.

ii.

Revenue – Legacy licence business

The legacy licence fee business encompasses the sale
of initial licence fees which will continue to decline as
our customers transition to SaaS, growing the SaaS and
continuing business revenue. Included within this revenue
group is Annual Licence Fees recognised from the date the
associated initial licence is delivered until the end of the first
financial year post signing.

(e)

Income tax

The income tax expense or benefit for the period is the tax
payable on the current period's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

The current income tax charge is calculated based on the
tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Group's subsidiaries
operate and generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate based on amounts
expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial
statements. However, the deferred income tax is not accounted
for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time
of the transaction affects neither accounting nor taxable profit
or loss except for transactions that, on initial recognition give rise
to equal taxable and deductible temporary differences such as
recognition of an ROU Asset and a lease liability. Deferred income
tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary
differences and losses.

Deferred tax liabilities and assets are not recognised for temporary
differences between the carrying amount and tax bases of investments
in foreign operations where the Group is able to control the timing of
the reversal of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset 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.
Current tax assets and tax liabilities are offset where the entity has a
legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.

The carrying amount of deferred income 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 income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates
that are expected to apply to the year when the asset is realised or
the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.

Technology One Limited and its wholly owned Australian
controlled entities have implemented the tax consolidation
legislation. Consequently, these entities are taxed as a single
entity and the deferred tax assets and liabilities of these entities
are set off in the consolidated financial statements.

The head entity, Technology One Limited, and the controlled
entities in the tax consolidated group account for their own
current and deferred tax amounts. These tax amounts are
measured as if each entity in the tax consolidated group
continues to be a stand-alone taxpayer.

The Group has applied the Group allocation approach in determining
the appropriate amount of current taxes and deferred taxes to allocate
to members of the tax consolidated group. The current and deferred
tax amounts are measured in a systematic manner that is consistent
with the broad principles in AASB 112 Income Taxes.

The Group created an Employee Share Trust in 2009 which allows
an employee on the exercise of an option to hold the resultant share
in the Trust. In accordance with AASB 112, on granting the option,
the Group records a deferred tax asset on the expected value of
the share. If the amount of the tax deduction (or estimated future
tax deduction) exceeds the amount of the related cumulative
remuneration expense, the difference is recognised directly in equity.
When the employee exercises the option, the tax effect difference
between the actual market value and what was recorded as a
deferred tax asset is recognised in equity.

The Group is entitled to claim special tax offsets in relation to
qualifying expenditure (namely the Research and Development Tax
Incentive regime). In relation to non-refundable tax offsets, the Group
accounts for such allowances as tax credits, which means that the
allowance reduces income tax payable
and current tax expense.

133

Making life simple for our communityNotes to the consolidated
financial statements
1

Summary of significant accounting policies (continued)

(f) Segment reporting

An operating segment is a component of an entity that engages
in business activities from which it may earn revenues and
incur expenses (including revenues and expenses relating to
transactions with other components of the same entity), whose
operating results are regularly reviewed by the entity's chief
operating decision maker to make decisions about resources to
be allocated to the segment and assess its performance and for
which discrete financial information is available.

Operating segments have been identified based on the
information provided to the chief operating decision maker
- being the Managing Director and Chief Executive Officer.

Operating segments that meet the quantitative criteria as
prescribed by AASB 8 Operating Segments are reported
separately. However, an operating segment that does not
meet the quantitative criteria is still reported separately where
information about the segment would be useful to users of the
financial statements.

(g) Leases

AASB 16 Leases sets out the principles for the recognition,
measurement, presentation and disclosure of leases and requires
lessees to recognise most leases on the balance sheet.

The Group’s lease portfolio primarily consists of property leases.
Lease terms are negotiated on an individual basis and contain a
range of different terms and conditions.

Lease contracts may contain both lease and non-lease
components. The Group allocates the consideration in the
contract to the lease and non-lease components based on their
relative stand-alone values.

Lease liability

The lease liability is initially measured at the present value
of outstanding lease payments (including those to be made
under reasonably certain extension options). The payments
used in this calculation include the following:

•

fixed payments (including in-substance fixed payments),
less any lease incentives receivable,

variable lease payment that are based on an index or a
rate, initially measured using the index or rate as at the
commencement date,

• amounts expected to be payable by the group under

This rate is the rate of interest that a lessee would have to
pay to borrow the funds necessary to purchase the right of
use asset, over a similar term and with a similar security, in
similar economic environment.

In the absence of borrowings the Group uses the relevant
interest rate swap curve as the starting point in determining
the incremental borrowing rate. In line with the accounting
standard the Group ensures the swap curve rate reflects
the term of the leases, the value of the leases and the
creditworthiness of the Group.

Once the lease liability has been recognised on the balance
sheet the periodic lease repayments are allocated between
an interest and a principal element. The interest is charged
to profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance
of the liability. Variable lease payments that do not depend
on an index or a rate are recognised as expenses in the
period in which the event or condition that triggers the
payment occurs.

Right‑of‑use asset

The right-of-use asset is initially calculated as being equal to
the lease liability and then adjusted for the following:

•

Lease payments made on or before the commencement
date less any incentives received,

• Any initial direct costs, and;

• An estimate of restoration costs.

This right-of-use asset is then depreciated on a straight-line
basis over the calculated lease term.

Right-of-use assets are also subject to impairment testing
under AASB 136 Impairment of assets.

Short‑term assets

The Group applies the short-term lease recognition exemption
to its short-term leases (i.e., those leases that have a lease
term of 12 months or less from the commencement date and
do not contain a purchase option). Payments associated with
short-term leases are recognised on a straight-line basis as
an expense in profit or loss.

(h) Variable costs

residual value guarantees,

The components of variable costs comprise:

•

the exercise price of a purchase option if the group is
reasonably certain to exercise that option, and;

• payments of penalties for terminating the lease, if the
lease term reflects the group exercising that option.

The lease payments above are discounted using the interest
rate implicit in the lease if that rate is readily determinable.
This is not the case for the Group’s current leases. When the
interest rate implicit in the lease is not readily determinable
AASB 16 requires the use of the incremental borrowing rate to
calculate the present value of the lease payments.

• Costs incurred in obtaining an initial licence fee contract as

well as incentives on achievement of KPIs. These are
expensed as incurred.

• Costs incurred in fulfilling the contract with a customer are
capitalised if the requirements in AASB 15 are fulfilled and
are then amortised in line with the satisfaction of the related
performance obligation. The expense is recognised within
the Depreciation and Amortisation line of the Consolidated
Statement of Profit or Loss.

(i) Variable customer SaaS costs

Variable customer SaaS costs relate to costs incurred in providing
our customers with access to our SaaS Platform. These costs are
expensed as consumed.

134

TechnologyOne Annual Report 2023(j)

Impairment of assets

(iii)

Impairment

Goodwill and intangible assets that have an indefinite useful
life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in
circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair
value less costs to sell and value-in-use. For the purposes of
assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash inflows which
are largely independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial assets
other than goodwill that suffered an impairment are reviewed
for possible reversal of the impairment at the end of each
reporting period.

(k) Financial assets and liabilities

Financial instruments recognised in the statement of financial
position include; cash and cash equivalents, trade and other
receivables, contract assets, lease liabilities, trade payables
and contingent consideration.

(i) Classification

The Group classifies its financial assets and financial liabilities
into the following measurement categories;

•

those to be measured at amortised cost
(using the effective interest method) and;

those to be measured at fair value with changes through
the profit or loss (FVPL).

Classification into these categories is based on an assessment
of the Group's business model for managing its financial
instruments and the contractual terms of the cash flows.

(ii) Measurement

Amortised cost

Financial assets are initially measured at fair value.
Trade receivables that do not contain a significant financing
component or for which the Group has applied the practical
expedient are measured at the transaction price. Financial
assets and liabilities at amortised cost are subsequently
measured using the effective interest method.
Further adjustments to the carrying value of the
financial instrument will arise if there is a modification
to the contractual cash flows creating a gain/loss in
the measurement or if there is no longer a reasonable
expectation of recovery of a financial asset, resulting in
a write-off.

Fair value through profit and loss (FVPL)

The financial instrument is measured at fair value. Changes in
fair value are recognised in profit and loss as they arise.

The Group recognises impairment losses on its financial assets
carried at amortised cost using an expected credit losses
(ECL) model, in line with AASB 9 Financial Instruments. The ECL
model essentially aims to calculate the assets' credit risk. It
involves consideration of scenarios that would lead to default,
calculating the shortfall between what is contractually due
and what would be received under each scenario and then
multiplying the shortfall/loss by the probability of the default
situation occurring.

The Group has elected to apply the AASB 9 Financial
Instruments’ simplified approach to measuring expected
credit losses which uses a lifetime expected credit loss
allowance for all trade receivables and contract assets.
The Group has also made use of the practical expedient
available for calculating expected credit losses for Short-Term
receivables. This practical expedient involves using a
“provision matrix” to calculate the loss allowance. This matrix
is based on historical default rates over the expected life of
the trade receivables, adjusted for forward-looking estimates.

A 6-month historical default rate is applied to the trade
receivables balance to calculate the expected credit loss.
This appears as a provision against the trade receivables
balance. Movements in this provision are recognised as
an expense in the consolidated income statement to the
extent that the related revenue has been recognised in the
consolidated income statement. If a receivable balance is
identified as being unrecoverable it is written off against the
allowance for expected credit losses.

(l) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows,
cash and cash equivalents includes cash on hand, deposits held
at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value, and
bank overdrafts. Investments with original maturities over three
months are classified as financial assets in the statements of
financial position. Cash and cash equivalents are presented in the
consolidated statement of cash flows, net of outstanding bank
overdrafts.

(m) Trade and other receivables

Trade and other receivables are recognised initially at transaction
price which is deemed to be fair value and subsequently
measured at amortised cost using the effective interest method.
Trade receivables are typically due for settlement within
14 to 30 days.

135

Making life simple for our communityNotes to the consolidated
financial statements
1

Summary of significant accounting policies (continued)

(n) Property, plant and equipment

(iii) Software development

Property, plant and equipment are measured at cost less
accumulated depreciation and any impairment in value.
Depreciation is calculated on a straight-line basis over the
estimated useful economic lives of the assets as follows:

Office furniture and equipment

Computer software

3 - 11 years

3 - 4 years

The assets' residual values and useful lives are reviewed,
and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount (note 1(j)).

Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in the
Statement of Comprehensive Income.

(o)

Intangible assets

(i)

Goodwill

Goodwill represents the excess of the cost of an acquisition
over the fair value of the Group's share of the net identifiable
assets of the acquired subsidiary/associate at the date of
acquisition. Goodwill on acquisitions of subsidiaries is included
in intangible assets. Goodwill is not amortised. Instead,
goodwill is tested for impairment annually, or more frequently
if events or changes in circumstances indicate that it might be
impaired and is carried at cost less accumulated impairment
losses. Gains and losses on the disposal of an entity include
the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose
of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that
are expected to benefit from the business combination in
which the goodwill arose (note 14).

(ii)

Intellectual property/source code

Intangible assets acquired separately are capitalised at
cost, and if acquired as a result of a business combination,
capitalised at fair value as at the date of acquisition.
Following initial recognition, the cost model is applied to all
classes of intangible assets. The useful lives of the intangible
assets are assessed to be either finite or indefinite. Where
amortisation is charged on intangible assets with finite lives,
this expense is recognised in the Income Statement through
the 'depreciation and amortisation expense' line item.
Intangible assets with finite lives are tested for impairment
where an indicator of impairment exists. Useful lives are
examined on an annual basis and adjustments, where
applicable, are made on a prospective basis.

Intellectual Property/Source Code

Customer contracts

Trade names

5 - 8 years

6 - 12 years

8 – 12 years

Gains or losses arising from the de-recognition of an
intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the
asset and are recognised in the statement of comprehensive
income when the intangible asset is derecognised.

136

Research expenditure is recognised as an expense as
incurred. Research costs are largely made up of employee
labour which is included in employee costs in the
consolidated Income Statement. Development expenditure
is only capitalised if the recognition requirements within AASB
138 Intangible Assets have been fulfilled and an economic
benefit of more than 12 months is expected.

Costs that are directly associated with the development of
this software are recognised as an intangible asset where the
following criteria are met:

(a) The technical feasibility of completing the intangible
asset so that it will be available for use or sale;

(b)

Intention to complete the intangible asset and use or
sell it;

(d) How the intangible asset will generate probable

economic benefits. Among other things, the entity can
demonstrate the existence of a market for the output
of the intangible asset or the intangible asset itself
or, if it is to be used internally, the usefulness of the
intangible asset;

(e)

The availability of adequate technical, financial and
other resources to complete the development and to
use or sell the intangible asset; and

(f)

Ability to measure reliably the expenditure attributable
to the intangible asset during its development.

As a SaaS company, access is provided to our products via a
SaaS platform over a prolonged term. The technical feasibility
of our products can be established through pre-defined
project roadmaps.

TechnologyOne follows a robust process to ensure the
accuracy of the amounts capitalised on the balance sheet.
The costs included in the balance are costs of personnel
and other directly attributable costs incurred in the
development of software. The process for determining what
constitutes capitalisable expenditure under AASB 138 involves
a detailed analysis of all timesheet data available regarding
projects that employees have worked on during the year
and other directly attributable costs in respect of software
development spend.

Capitalised software development costs are recognised
as an intangible asset and amortised over their estimated
useful lives, which is considered to be five years. Software
development costs are capitalised as “under development”
until the products to which the costs relate become available
for use. At the point in which the products become available
for use, the costs are transferred from “under development”
to “in use” and amortised from that point (refer to
categorisation in note 14). Development costs previously
recognised as expenses are not recognised as assets in a
subsequent period.

TechnologyOne Annual Report 2023(p) Trade and other payables

These amounts represent liabilities for goods and services
provided to the Group prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within
30 days of recognition.

(q) Provisions

Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is probable
that an outflow of resources will be required to settle the
obligation and the amount has been reliably estimated. Provisions
are not recognised for future operating losses.

Provisions are measured at the present value of management’s
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to
the passage of time is recognised as interest expense.

The cost of share-based payments is recognised, together
with a corresponding increase in equity, over the period in
which the performance and/or service conditions are fulfilled,
ending on the date on which the relevant employees become
fully entitled to the award (the vesting period). If options or
rights do not vest at the end of the performance period due
to the service condition or non-market condition not being
met, the corresponding expense will be reversed.

(s) Contributed equity

Ordinary shares are classified as equity.

Issued and paid up capital is recognised at the fair value of the
consideration received. Any transaction costs arising on the issue
of ordinary shares are recognised directly in equity as a reduction
of the share proceeds received.

(t) Earnings per share

(i) Basic earnings per share

(r) Employee benefits

(i) Short‑term obligations

Liabilities for wages and salaries, including non-monetary
benefits and annual leave expected to be settled within
12 months after the end of the period in which the employees
render the related service are recognised in respect of
employees’ services up to the end of the reporting period
and are measured at the amounts expected to be paid when
the liabilities are settled. Liabilities for sick leave, which are
non-vesting, are recognised when the leave is taken
and measured at the rates paid or payable.

(ii) Deferred STI

An amount equal to an additional 25% of the annual STI
earned by Executive KMP in the year is deferred and paid
at the conclusion of the two-year period following the end
of the financial year. It is accrued over a three-year period
from the annual performance period in which it is determined
and deferred for a two-year period following the end of the
financial year.

(iii) Long service leave

The liability for long service leave is recognised in the provision
for employee benefits and is measured as the present value
of expected future payments to be made in respect of
services provided by employees up to the reporting period.
Consideration is given to expected future wage and salary
levels, experience of employee departures and periods of
service. Expected future payments are discounted using
market yields at the end of the reporting period on national
corporate bonds with terms to maturity and currency that
match, as closely as possible, the estimated future cash
outflows.

(iv) Share‑based payments

The Group provides benefits to certain employees in the form
of share-based payment transactions, whereby employees
render services in exchange for rights over shares. The costs
of share-based payment transactions with employees are
measured by reference to the fair value of the equity instruments
at the date at which they are granted. Refer to note 32.

Basic earnings per share is calculated by dividing:

•

The profit attributable to owners of the Group, excluding
any costs of servicing equity other than ordinary shares

• By the weighted average number of ordinary shares
outstanding during the year, adjusted for bonus
elements in ordinary shares issued during the year
and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account:

•

The after income tax effect of interest and other
financing costs associated with dilutive potential
ordinary shares

The weighted average number of additional ordinary
shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.

(u) Dividends

Provision is made for the amount of any dividend declared, being
appropriately authorised and no longer at the discretion of
the entity, on or before the end of the reporting period but not
distributed at the end of the reporting period.

(v) Goods and services tax (GST) and equivalent

overseas value added taxes

Revenues, expenses and assets are recognised net of the amount
of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of
the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other
receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components
of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are
presented as operating cash flows.

137

Making life simple for our communityNotes to the consolidated
financial statements
2
Financial instruments recognised in the consolidated statement of financial position include; cash and cash equivalents, investments,
trade and other receivables, lease liabilities, trade payables and contingent consideration.

Financial Risk Management

It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be undertaken.
The main risks arising from the Group’s financial assets and liabilities are interest rate risk, foreign currency risk, credit risk and liquidity risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised below.

The Group holds the following financial instruments:

(a)

Interest rate risk

At balance sheet date, some of the Group’s cash and investment assets are exposed to movements in variable interest rates.
The Group does not hedge this exposure. Interest rate risk on cash and investments is not material.

(b) Foreign currency risk

As a result of operations in New Zealand, Malaysia, Papua New Guinea, the United Kingdom and Europe, and sales contracts
denominated in different currencies, the consolidated statement of financial position can be affected by movements in the exchange
rates applicable to these geographical locations and currencies.

The Group does not hedge this risk. The Group’s exposure to foreign currency changes is not significant.

At balance date, the Group had the following exposures in Australian dollar equivalents of amounts to foreign currencies which are not hedged:

Trade receivables

2023
PGK
($’000)

2023
EUR
($’000)

2023
USD
($’000)

2023
HKD
($’000)

2022
USD
($’000)

2022
PGK
($’000)

2022
EUR
($’000)

1,193

344

191

104

106

The Group is exposed to credit risk from its operating activities (primarily trade and other receivables and contract assets) and from its
financing activities, including deposits with banks and financial institutions.

To manage this risk the Group trades only with recognised, creditworthy third parties. It is the Group's policy that all customers who wish to
trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the
result that the Group's historic experience of credit loss is not significant. Information on credit risk exposures is contained in note 10.

138

TechnologyOne Annual Report 2023(d) Liquidity risk

Liquidity risk arises from the financial liabilities of the Group and the Group’s subsequent ability to meet their obligations to repay their
financial liabilities as and when they fall due.

The below table represents the financial assets under note 2(c) and the liquidity risk of financial liabilities referred to in note 2(d).

AT 30 SEPTEMBER 2023

FINANCIAL ASSETS

Cash and cash equivalents

Financial assets

Trade and other receivables

Total

FINANCIAL LIABILITIES

Trade and other payables

Contingent consideration

Lease liabilities1

Total

Net inflow / (outflow)

AT 30 SEPTEMBER 2022

FINANCIAL ASSETS

Cash and cash equivalents

Trade and other receivables

Total

FINANCIAL LIABILITIES

Trade and other payables

Contingent consideration

Lease liabilities1

Total

Net inflow / (outflow)

1 For lease liabilities, this table (d) represents contracted future cashflows.

Less than
12 months
($’000)

Between 1
and 5 years
($’000)

Over 5
years
($’000)

Total contractual
cash flows
($’000)

198,265

25,000

62,416

285,681

49,247

10,609

59,856

‑

24,867

1,640

225,825

(24,867)

(1,640)

198,265

25,000

62,416

285,681

49,247

37,116

86,363

199,318

Less than
12 months
($’000)

Between 1
and 5 years
($’000)

Over 5
years
($’000)

Total contractual
cash flows
($’000)

175,865

57,266

233,131

41,562

6,997

9,715

58,274

174,857

‑

27,276

2,635

175,865

57,266

233,131

41,562

6,997

39,626

88,185

(27,276)

(2,635)

144,946

139

Making life simple for our communityNotes to the consolidated
financial statements
Financial Risk Management
2
(continued)

3 Critical accounting estimates

and judgments

(e) Fair value measurement

Contingent consideration was classified as Level 3 in the prior
year. The release of the contingent consideration that does not
represent payment is recognised within the other income line of
the consolidated income statement while any payment would
be applied against this provision. For further details please refer
to note 19.

Contingent consideration

Opening balance

Reversal of contingent consideration

Foreign Exchange movement

Closing balance

2023
($’000)

6,997

(7,378)

381

‑

2022
($’000)

7,576

(579)

6,997

The carrying value of trade and other receivables, contract assets
and trade payables are assumed to approximate their fair value
due to their short-term nature.

(f) Capital risk management

The Group manages its capital to ensure that entities in the
Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of
the debt and equity balance.

The Group’s current conservative capital structure does not
include debt funding.

The equity funded position of the Group is managed by the
Board through dividends, new shares and share buy backs as well
as the issue of new equity where considered appropriate to fund
business acquisitions.

Estimates and judgments are continually evaluated and are based
on historical experience and other factors, including expectations of
future events that may have a financial impact on the entity
and that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the
future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.

(i)

Impairment of goodwill and other assets

The Group tests annually whether goodwill has suffered any
impairment, in accordance with the accounting policy stated
in note 1(o)(i). The recoverable amounts of cash-generating
units have been determined based on value-in-use
calculations. These calculations require the use of
assumptions. Refer to note 14 for details of these assumptions
and the potential impact of changes to the assumptions.

All other assets are reviewed for indicators or objective
evidence of impairment. If indicators or objective evidence
exists, the recoverable amount is reviewed.

(ii) Share‑based payments

The Group provides benefits to certain employees in the form
of share-based payment transactions, whereby employees
render services in exchange for rights over shares. The costs
of share-based payment transactions with employees
are measured by reference to the fair value of the equity
instruments at the date at which they are granted. Refer to
note 32.

The cost of share-based payments is recognised, together
with a corresponding increase in equity, over the period in
which the performance and/or service conditions are fulfilled,
ending on the date on which the relevant employees become
fully entitled to the award (the vesting period). In the event
that the rights over shares do not vest at the end of the
performance period, the expense relating to the unvested
rights is reversed. No expense is recognised for awards that
do not ultimately vest due to not meeting the non-market
conditions or service conditions.

(iii) Capitalisation of development costs

The Group capitalises costs related to software development.
Software development costs are recognised upon meeting
the criteria set out in note 1(o)(iii). The carrying value of
these costs are regularly reviewed for impairment. Software
development costs are amortised over a period of five years.

(iv) Legal Provision

Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
The group recognises legal provisions based on the probability
and management’s best estimate of the outcome of the claim.

140

TechnologyOne Annual Report 2023
4

Segment information

(a) Description of segments

The Group’s chief operating decision maker (CoDM), being the Managing Director and Chief Executive Officer Executive Officer, makes
financial decisions and allocates resources based on the information received from the Group’s internal management system. Sales are
attributed to an operating segment based on the type of product or service provided to the customer.

Segment information is prepared in conformity with the accounting policies of the Group as discussed in note 1 and the Accounting
Standard AASB 8 Operating Segments.

The Group’s reportable segments are:

•

Software – consists of Sales and Marketing, R&D, SaaS platform.

Consulting – responsible for services in relation to our software.

Corporate – includes all corporate functions.

Intersegment revenues/expenses are where one operating segment has been charged for the use of another's expertise.

Royalties are a mechanism whereby each segment pays or receives funding for their contribution to the ongoing success of the Group.
For example, Software pays Corporate for the use of corporate services.

The chief operating decision maker views each segment’s performance based on revenue post royalties and profit before tax.
No reporting or reviews are made of segment assets, liabilities and cash flows and as such this is not measured or reported by segment.

(b) Segment information provided to the Chief Operating Decision Maker

2023

REVENUE

SaaS fees1

Annual licence fees1

Consulting services1

Initial licence fees2

Intersegment revenue

Net royalty

Total revenue from contracts with customers

Other income

EXPENSES

Total external expenses

Profit before tax

Income tax expense

Profit for the year

Total assets

Total liabilities

Total depreciation and amortisation

Software
($’000)

Consulting
($’000)

Corporate
($’000)

Total
($’000)

316,181

37,203

2,811

(555)

(72,372)

283,268

377

73,183

738

(7,738)

66,183

(185,876)

(52,360)

97,769

13,823

(183)

80,110

79,927

11,608

(73,273)

18,262

316,181

37,203

73,183

2,811

429,378

11,985

(311,509)

129,854

(26,978)

102,876

636,737

330,731

(53,502)

141

Making life simple for our communityNotes to the consolidated
financial statements
4 Segment information (continued)

Software
($’000)

Consulting
($’000)

Corporate
($’000)

Total
($’000)

216,812

70,221

8,531

(443)

(66,320)

228,801

583

72,670

602

(7,300)

65,972

(159)

73,620

73,461

574

(151,902)

77,482

(49,121)

16,851

(56,048)

17,987

2023
($’000)

350,364

47,185

397,549

31,829

429,378

2023
($’000)

547,467

23,444

570,911

44,444

615,355

216,812

70,221

72,670

8,531

368,234

1,157

(257,071)

112,320

(23,477)

88,843

539,945

300,848

(38,110)

2022
($’000)

302,486

40,482

342,968

25,266

368,234

2022
($’000)

442,497

37,901

480,398

38,487

518,885

2022

REVENUE

SaaS fees1

Annual licence fees1

Consulting services1

Initial licence fees2

Intersegment revenue

Net royalty

Total revenue from contracts with customers

Other income

EXPENSES

Total external expenses

Profit before tax

Income tax expense

Profit for the year

Total assets

Total liabilities

Total depreciation and amortisation

1 Recognised over time / as services are rendered.

2 Recognised at a point in time.

(i) Segment revenue

Australia

New Zealand and Asia Pacific

APAC total

United Kingdom

Total segment revenues from sales to external customers

(ii) Segment assets

Australia

New Zealand and Asia Pacific

APAC total

United Kingdom

Total segment assets1

1 Segment assets are presented net of deferred tax.

(iii) Major customers

No Group customer contributes greater than 10% of external revenue.

142

TechnologyOne Annual Report 20235 Revenue

REVENUE FROM CONTRACTS WITH CUSTOMERS

SaaS fees1

Annual licence fees1

Consulting services1

Revenue ‑ SaaS and continuing business

Initial licence fees2

Annual licence fees associated with initial licence fees2 3

Revenue ‑ Legacy licence business

Total revenue from contracts with customers

1 Recognised over time / as services are rendered.

2 Recognised at a point in time.

2023
($’000)

2022
($’000)

316,181

37,015

73,183

216,812

69,186

72,670

426,379

358,668

2,811

188

2,999

8,531

1,035

9,566

429,378

368,234

3 This represents revenue on Annual Licence Fees recognised from the date the associated initial licence is delivered until the end of the first financial year post delivery.

OTHER INCOME

Foreign exchange gains / (losses)

Interest received

Reversal of contingent consideration (note 19)

Other

Total other income

Total revenue

2023
($’000)

2022
($’000)

4,139

7,378

447

11,985

441,363

423

700

1,157

369,391

143

Making life simple for our communityNotes to the consolidated
financial statements
6

Expenses

PROFIT BEFORE INCOME TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:

DEPRECIATION

Plant and equipment

Total depreciation

AMORTISATION

Other intangible assets amortisation

Contract acquisition costs amortisation

Capitalised development amortisation

Amortisation of right-of-use assets

Total amortisation

Total depreciation and amortisation

Wages and salaries

Defined contribution plan expense

Payroll tax

Other employee benefits

Other

Total employee costs1

Share based payments

Employee Share Purchase Plan

Share‑based payments

Profit and loss movement in expected credit loss

Foreign exchange (gain) / loss

(Gain) / loss on sale of property, plant and equipment

2023
($’000)

2022
($’000)

2,957

1,933

8,574

34,055

5,983

50,545

53,502

98,840

12,182

9,562

1,079

13,452

135,115

3,907

1,920

5,827

498

(106)

(3)

2,627

1,185

5,839

23,383

5,076

35,483

38,110

94,048

10,680

8,588

415

10,930

124,661

3,353

639

(68)

(6)

In addition to the employee benefits expense disclosed above, ‘Variable costs’ in the consolidated income statement includes $17.9m (2022: $17.7m) relating to employee costs, In
addition, ‘Contract acquisition costs’ in the consolidated statement of financial position includes $17.1m (2022: $11.9m) and ‘Capitalised development’ includes $52.7m (2022: $41.6m) of
current year employee benefits that have been capitalised.

144

TechnologyOne Annual Report 20237

Income tax expenses

(a)

Income tax expense

Current tax

Relating to origination and reversal of temporary differences

Adjustments for tax expense of prior periods

Income tax expense

DEFERRED INCOME TAX EXPENSE / (REVENUE) INCLUDED IN INCOME TAX EXPENSE COMPRISES:

(Increase) / decrease in deferred tax assets (note 15)

Increase / (decrease) in deferred tax liabilities (note 15)

Adjustments for deferred taxes of prior periods

Deferred tax expense

(b) Numerical reconciliation of income tax expense to prima facie tax payable

Profit from continuing operations before income tax expense

Tax at the Australian tax rate of 30% (2022: 30%)

Adjustments for current tax of prior periods

Research and development tax concession

Non-taxable income

Expenditure not allowable for income tax purposes

Current year tax losses not recognised

Tax rate variance in subsidiaries

Change in foreign tax rate

Income tax expense

2023
($’000)

26,549

672

(243)

26,978

(4,955)

7,789

(2,162)

672

2023
($’000)

129,854

38,956

(244)

(10,214)

(1,584)

218

(858)

688

2022
($’000)

19,374

5,717

(1,614)

23,477

(1,786)

6,447

1,056

5,717

2022
($’000)

112,320

33,696

(1,614)

(8,453)

279

(35)

(396)

26,978

23,477

2023
($’000)

2022
($’000)

Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss or other
comprehensive income but directly debited or credited to equity:

Net deferred tax debited / (credited) directly to equity

(3,156)

145

Making life simple for our communityNotes to the consolidated
financial statements
8 Current assets ‑ Cash and cash equivalents

Cash and cash equivalents

2023
($’000)

2022
($’000)

198,265

175,865

The Group has a $2 million overdraft facility to assist with working capital requirements. The facility is unused at 30 September 2023.

Cash at bank earns interest at floating rates based on daily bank deposit rates (ranging from 0.0% to 4.45%). Included in the Cash and cash
equivalents amount are term deposits invested for periods ranging from one day to three months (earning interest from 4.47% to 5.67%). Given
the short-term nature of these term deposit accounts, the fair value of cash assets at 30 September are their carrying values.

9 Current assets – Financial assets

Term deposits

2023
($’000)

25,000

2022
($’000)

Term deposits with original maturities over three months, but less than twelve months, are classified as current financial assets
(earning interest of 5.02%).

10 Current assets – Trade and other receivables

Trade and other receivables

Allowance for expected credit losses

Sundry receivables

2023
($’000)

62,764

(1,849)

1,501

62,416

2022
($’000)

59,917

(3,172)

521

57,266

Trade and other receivables are non-interest bearing and are on 14 to 30 day terms. No interest is charged on trade and other
receivables.

Included in the trade and other receivables balance are debtors with a carrying amount of $2.8m (2022: $4.2m) which are past due at
the reporting date for which the consolidated entity has not provided a specific allowance as there has not been a significant change
in credit quality. The Company believes that the amounts are still recoverable. The Company does not hold any collateral over these
balances, however is able to withdraw future support and software licence use rights if concerns arise relating to the recoverability of an
outstanding customer balance.

(a) Allowance for expected credit losses

Movements in the provision for expected credit losses are as follows:

Opening balance - 1 October

Increase/(decrease) in expected credit loss allowance

Amounts reversed/written off

Closing balance ‑ 30 September

2023
($’000)

3,172

176

(1,499)

1,849

2022
($’000)

4,158

(387)

(599)

3,172

In determining the recoverability of a trade and other receivable the Group considers any change in the credit quality of the trade
receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the
customer base being large and unrelated.

146

TechnologyOne Annual Report 2023Age

0 – 30 days

31 – 60 days

61 – 90 days

91+ days

11 Contract assets

Contract assets - current

Contract assets - non-current

Allowance for expected credit losses

Trade
Debtors
2023
($’000)

58,751

1,687

360

1,966

Expected
credit loss
2023
($’000)

(664)

(175)

(26)

(984)

62,764

(1,849)

Trade
Debtors
2022
($’000)

47,234

4,742

1,135

6,806

59,917

2023
($’000)

23,134

3,618

(243)

26,509

Expected
credit loss
2022
($’000)

(433)

(44)

(262)

(2,433)

(3,172)

2022
($’000)

21,781

4,881

(241)

26,421

The above contract asset balance represents revenue recognised for contracts with customers which has not been invoiced at the end
of the financial year, in accordance with customer contracts.

Expected credit loss for contract assets

Movements in the provision for impairment of contract assets are as follows:

Opening balance - 1 October

Increase/(decrease) in expected credit loss allowance recognised in profit and loss during the year

Closing balance ‑ 30 September

Current assets – Other current assets

Refundable deposits

2023
($’000)

2022
($’000)

241

243

209

241

2023
($’000)

1,127

2022
($’000)

600

147

Making life simple for our communityNotes to the consolidated
financial statements
13 Non‑current assets – Property, plant and equipment

Office furniture
& equipment
($’000)

Other
($’000)

Total
($’000)

8,501

7,752

(3)

(2,955)

(17)

13,295

50,975

(37,680)

13,295

7,323

3,767

(13)

(2,577)

(54)

8,501

46,311

(37,810)

8,501

(2)

4,789

(4,769)

8,505

7,770

(3)

(2,957)

(17)

13,315

55,764

(42,449)

13,315

7,377

3,767

(13)

(50)

(2,627)

4,770

(4,766)

(54)

8,505

51,081

(42,576)

8,505

YEAR ENDED 30 SEPTEMBER 2023

Opening net book amount

Additions

Disposals

Depreciation charge

Make good movement

Exchange difference

Closing net book amount

AT 30 SEPTEMBER 2023

Cost

Accumulated depreciation

Net book amount

YEAR ENDED 30 SEPTEMBER 2022

Opening net book amount

Additions

Disposals

Depreciation charge

Make good movement

Exchange difference

Closing net book amount

AT 30 SEPTEMBER 2022

Cost

Accumulated depreciation

Net book amount

148

TechnologyOne Annual Report 202314

Intangible assets

Intellectual
property/
source code
($’000)

Customer
contracts
($’000)

Contract
acquisition
costs1
($’000)

Software
under
development
($’000)

Goodwill
($’000)

Software‑
in use
($’000)

Total
($’000)

YEAR ENDED 30 SEPTEMBER 2023

Opening net book amount

46,580

6,792

6,080

Additions

Transfers to software - in use

Amortisation charge

Derecognition

Foreign Exchange difference

Closing net book amount

AT 30 SEPTEMBER 2023

Cost

Accumulated amortisation

Accumulated impairment

Net book amount

1,371

47,951

54,704

(6,753)

47,951

YEAR ENDED 30 SEPTEMBER 2022

Opening net book amount

47,694

Additions

Transfers to software - in use

Amortisation charge

Derecognition

Foreign Exchange difference

Closing net book amount

AT 30 SEPTEMBER 2022

(1,114)

46,580

987

(802)

(916)

6,123

15,949

(6,233)

(3,593)

6,123

5,900

1,547

(569)

(86)

6,792

Cost

53,333

14,900

Accumulated amortisation

Accumulated impairment

Net book amount

(6,753)

46,580

(5,431)

(2,677)

6,792

20,378

20,764

(1,131)

(8,574)

487

235

33,947

60,605

(51,574)

149

92,962

206,739

82,356

51,574

(34,055)

(44,562)

(5,022)

(5,938)

2,336

5,436

32,803

43,127

105,491

240,931

7,626

56,347

43,127

188,038

365,791

(2,190)

(23,544)

(77,525)

(109,492)

(5,022)

(15,368)

5,436

32,803

43,127

105,491

240,931

7,180

(616)

(484)

6,080

7,139

(1,059)

14,677

11,908

30,295

50,060

70,713

176,459

63,515

(46,369)

46,369

(5,839)

(368)

(39)

(23,383)

(30,407)

(737)

(2,828)

20,378

33,947

92,962

206,739

35,348

(14,970)

33,947

136,432

281,099

(43,470)

(64,930)

(9,430)

6,080

20,378

33,947

92,962

206,739

1 Balance of contract acquisition costs is split between current portion of $9.6m and non-current portion of $23.2m (2022: current $6.5m; non-current $13.9m). Assets with indefinite life

other than goodwill are within Intellectual property/source code above.

149

Making life simple for our communityNotes to the consolidated
financial statements
Intangible assets (continued)
14

(a) Review of intangible asset carrying values in relation to the contingent consideration

The events and circumstances leading to the reduction in the provision for contingent consideration (note 19) have also been considered
in terms of whether there are indicators of impairment in the carrying value of the goodwill and other intangibles acquired.

An assessment of Goodwill and other intangible assets resulted in no impairment being recognised.

In addition, a review of the intangible assets acquired has been performed in the period that has resulted in the following:

•

The carrying value of the acquired tradename has been derecognised in full ($0.9m, £0.5m) as the tradename is no longer in use.

• Certain acquired software assets have been derecognised ($5.0m, £2.7m).

• A portion of the acquired customer relationship asset has had accelerated amortisation due to a change in the assessed useful life

($0.9m, £0.5m).

A total of $5.9m (£3.2m) has been recognised as an expense within the Corporate costs line of the Consolidated Income Statement
representing the carrying value of assets derecognised.

An amount of $0.9m (£0.5m) has been recognised as an expense within the Depreciation and amortisation line of the Consolidated
Income Statement representing the accelerated amortisation of a portion of acquired customer relationships.

These expenses have been recognised within the external expenses line of the Corporate segment (note 2).

(b)

Impairment tests for goodwill

Goodwill and indefinite life intangibles are allocated to the Group's Software and Consulting cash-generating units (CGUs) which are
also operating and reportable segments for impairment testing purposes.

A segment-level summary of the goodwill and indefinite life intangible assets allocation is presented below.

2023

Goodwill

Indefinite life intangible assets

2022

Goodwill

Indefinite life intangible assets

Software
($’000)

Consulting
($’000)

Corporate
($’000)

Total
($’000)

38,343

1,362

39,705

36,972

1,362

38,334

9,608

660

10,268

9,608

660

10,268

‑

47,951

2,022

49,973

46,580

2,022

48,602

The recoverable amounts of each CGU has been determined based on cash flow projections based on financial budgets approved by
senior management covering a five-year period, with a value-in-use basis being used for all valuations.

The following table sets out the key assumptions for each cash-generating unit:

2023

Pre-tax nominal discount rate applied to the cash flow projections

Terminal growth rate

2022

Pre-tax nominal discount rate applied to the cash flow projections

Terminal growth rate

Software

Consulting

11.5%

15%

11.6%

15%

150

TechnologyOne Annual Report 202315 Non‑current assets – Deferred tax

(a) Deferred tax assets

THE BALANCE COMPRISES TEMPORARY DIFFERENCES ATTRIBUTABLE TO:

Employee benefits

Other provisions

Accrued expenses

Intangible assets

Lease liability (net)

Employee share trust

Deferred revenue

Other

2023
($’000)

2022
($’000)

5,434

2,042

981

477

2,315

4,738

58,259

3,195

77,472

5,097

2,450

1,384

830

3,066

2,952

50,621

2,924

69,361

Set-off of deferred tax liabilities pursuant to set-off provisions

(56,090)

(48,301)

Net deferred tax assets

Net deferred tax assets expected to be recovered within 12 months

Net deferred tax assets expected to be recovered after more than 12 months

MOVEMENTS:

Opening balance at 1 October

Credited / (charged) to the consolidated income statement

Credited / (charged) to equity

Offset from deferred tax liabilities

Closing balance at 30 September

21,382

53,120

(31,738)

21,382

21,060

48,688

(27,628)

21,060

2023
($’000)

2022
($’000)

69,361

4,955

3,156

(56,090)

21,382

67,643

1,718

(48,301)

21,060

151

Making life simple for our communityNotes to the consolidated
financial statements
15 Non‑current assets – Deferred tax (continued)

(b) Deferred tax liabilities

THE BALANCE COMPRISES TEMPORARY DIFFERENCES ATTRIBUTABLE TO

Contract assets

Accelerated depreciation for tax purposes

Prepayments

Capitalised development

Contract acquisition costs

Total deferred tax liabilities

Set-off of deferred tax liabilities pursuant to set-off provisions

Net deferred tax liabilities

MOVEMENTS

Opening balance at 1 October

Charged/(credited) to the Consolidated income statement (note 7)

Offset to deferred tax assets

Closing balance at 30 September

16 Current liabilities – Trade and other payables

Trade payables

Sundry creditors

Directors fees

2023
($’000)

2022
($’000)

(4,412)

(1,491)

(44)

(42,685)

(7,458)

(56,090)

56,090

‑

(5,461)

(914)

(25)

(36,176)

(5,725)

(48,301)

48,301

2023
($’000)

2022
($’000)

(48,301)

(41,854)

(7,789)

56,090

‑

2023
($’000)

39,733

9,340

174

49,247

(6,447)

48,301

2022
($’000)

40,331

8,163

48,559

Trade payables and sundry creditors are non-interest bearing and are normally settled on 30 day terms. No interest is payable on outstanding
balances. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.

152

TechnologyOne Annual Report 202317 Current liabilities – Deferred Revenue

Carrying amount at 1 October

Carrying amount at 30 September

Revenue recognised from the opening balance

2023
($’000)

184,008

214,495

182,471

2022
($’000)

169,322

184,008

168,003

Deferred Revenue represents payments received or receivable in advance from customers for SaaS Fees and Annual Licence Fees which
will be recognised as revenue in future periods, generally over the next 12 months. These amounts are classified as a contract liability
under AASB 15. These amounts do not result in a future cash outflow.

18 Current liabilities – Provisions

Make good provision

Other provisions1

Annual leave

Long service leave

2023
($’000)

‑

5,302

7,743

8,232

21,277

2022
($’000)

5,524

8,032

7,270

20,902

1 On 2 October 2020, the Federal Court issued a judgement against TechnologyOne in a civil employment case. As a result of the judgement, the Group’s provision was increased to
$5.2m as at 30 September 2020. The company lodged an appeal to the Full Federal Court on 26 October 2020. The company won its appeal, with the original judgement being
overturned in August 2021, and a retrial being ordered. The Group has retained the full value of the provision at 30 September 2022 and 2023 ($5.2m) based on management’s best
estimate pending the results of the retrial.

19 Contingent consideration

Contingent consideration - current

Contingent consideration- non-current

2023
($’000)

‑

2022
($’000)

6,997

On 15 September 2021, the Group acquired Scientia Resource Management Limited (Scientia), a United Kingdom company servicing the
higher education sector. The total consideration at 30 September 2021 of £10.2m included an initial cash payment of $11.5m (£6.1m)
and contingent consideration payable of $7.6m (£4.1m). The contingent consideration represented amounts potentially payable on the
achievement of specified performance targets. The performance hurdles set were based on Net Profit Before Tax (NPBT)
and Annual Recurring Revenue (ARR) results as of 31 December 2022.

The assessment period for these performance hurdles has now concluded and the Group notes that the NPBT and ARR targets set out in
the acquisition agreement have not been met. Therefore, no contingent consideration payment in respect of the calendar year ending
31 December 2022 was required to be paid under the agreement.

Given the above, the Group released the provision held on the Balance Sheet at 30 September 2022. $7.4m (£4.1m) has been credited
to the profit and loss within the Other Income line of the Consolidated Income Statement. Movement of $0.4m since
30 September 2022 is due to foreign exchange movements.

153

Making life simple for our communityNotes to the consolidated
financial statements
20 Non‑current liabilities – Provisions

Long service leave

Make good provision

(a) Movements in provisions

2023
($’000)

2,359

206

2,565

2022
($’000)

2,066

134

2,200

Movements in each class of provision during the financial year, other than employee benefits, are set out below:

The non-current provisions have been discounted using a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability.

Annual
leave
($’000)

Long service
leave
($’000)

Make
good
($’000)

Legal
provision
($’000)

Contingent
consideration
($’000)

Other
($’000)

Total
($’000)

2023

Carrying amount at 1 October 2022

Additional provisions recognised

Release of provision

8,032

3,451

9,336

2,498

Amount used during the year or Foreign
Exchange movement

(3,740)

(1,243)

Carrying amount at 30 September 2023

7,743

10,591

210

130

(134)

206

5,221

6,997

(7,378)

381

‑

303

30,099

6,121

(7,512)

(264)

(4,866)

23,842

Property
($’000)

Equipment
($’000)

Total
($’000)

23,071

1,912

2,809

(5,932)

626

22,486

43,510

(21,024)

22,486

167

(51)

155

367

(211)

156

23,110

2,079

2,809

(5,983)

626

22,641

43,876

(21,235)

22,641

21 Leases

Right‑of‑use assets

YEAR ENDED 30 SEPTEMBER 2023

Opening net book amount

Additions

Modifications during the year

Disposals

Depreciation charge

Exchange difference

Closing net book amount

AT 30 SEPTEMBER 2023

Cost

Accumulated depreciation

Net book amount

154

TechnologyOne Annual Report 2023Lease liability

YEAR ENDED 30 SEPTEMBER 2023

Opening liability

New leases entered into during the year

Modifications during the year

Payments

Interest expense

Exchange difference

Closing liability1

The following are amounts recognised in profit or loss under AASB 16:

Amortisation on right-of-use assets

Interest expense on lease liabilities

Total amount recognised in profit or loss

Cashflow from leases

Total cash outflow as a lessee2

Property
($’000)

Equipment
($’000)

Total
($’000)

35,253

1,879

2,803

(9,765)

2,058

760

32,988

167

(55)

168

2023
($’000)

5,983

2,063

8,046

2023
($’000)

9,820

35,304

2,046

2,803

(9,820)

2,063

760

33,156

2022
($’000)

5,076

1,724

6,800

2022
($’000)

5,376

1 Of the closing liability amount, $8.9m is classified as current in the Consolidated statement of financial position.

2 Increase in lease payments year on year is primarily due to the expiry of a rental rebate on the Group’s HQ lease. This rebate significantly reduced base rent payable between

1 July 2020 and 1 April 2022. The rent rebate applied in FY23 was nil (FY22: $3.1m).

155

Making life simple for our communityProperty
($’000)

Equipment
($’000)

Total
($’000)

22,385

4,558

1,292

(5,018)

(146)

23,071

38,164

(15,093)

23,071

(58)

199

(160)

22,442

4,598

1,292

(5,076)

(146)

23,110

38,363

(15,253)

23,110

Property
($’000)

Equipment
($’000)

Total
($’000)

33,325

4,543

1,280

(5,322)

1,723

(296)

35,253

(54)

33,389

4,583

1,280

(5,376)

1,724

(296)

35,304

Notes to the consolidated
financial statements
21. Leases (continued)

Leases Right‑of‑use assets

YEAR ENDED 30 SEPTEMBER 2022

Opening net book amount

Additions

Modifications during the year

Disposals

Depreciation charge

Exchange difference

Closing net book amount

AT 30 SEPTEMBER 2022

Cost

Accumulated depreciation

Net book amount

Lease liability

YEAR ENDED 30 SEPTEMBER 2022

Opening liability

New leases entered into during the year

Modifications during the year

Payments

Interest expense

Exchange difference

Closing liability

156

TechnologyOne Annual Report 202322 Contributed Equity

(a) Share capital

ORDINARY SHARES

Fully paid

(b) Movements in ordinary share capital

Date

Details

1-Oct-22

Opening balance

Exercise of options

Share grant to employees

Movement in treasury shares

30‑Sep‑23

Closing balance

1-Oct-21

Opening balance

Exercise of options

Share grant to employees

Movement in treasury shares

2023
Shares

2022
Shares

2023
($’000)

2022
($’000)

324,674,728

323,365,816

67,466

57,635

Number
of shares

323,365,816

1,303,806

108,912

(103,806)

324,674,728

321,648,793

1,392,572

4,607

319,844

($’000)

57,635

8,139

1,692

67,466

51,645

5,920

30‑Sep‑22

Closing balance

323,365,816

57,635

Information relating to the TechnologyOne Employee Share Option Plan, including details of options issued, exercised and lapsed during
the financial year and options outstanding at the end of the financial year, is set out in note 32.

23 Reserves

(a) Other reserves

Share option reserve

Foreign currency translation

Dividend reserve

(b) Nature and purpose of other reserves

(i) Share option reserve

2023
($’000)

48,965

2,262

48,377

99,604

2022
($’000)

41,658

(1,238)

41,455

81,875

The reserve is used to record the value of equity benefits provided to employees, through share-based payment transactions
and associated tax benefits.

(ii) Foreign currency translation

Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described
in note 1(c) and accumulated in a separate reserve within equity. The cumulative amount is reclassified to the consolidated income
statement when the net investment is disposed of.

(iii) Dividend reserve

The reserve records retained earnings set aside for the payment of future dividends.

157

Making life simple for our communityNotes to the consolidated
financial statements
24 Dividends

(a) Ordinary shares

Final dividend for the year ended 30 September 2022 of 10.82 Cents (2021: 10.09 Cents)
per fully paid share paid in December 2022 (2021 - December 2021)

60% franked (2021: 60%) based on tax paid at 30%

35,119

32,454

Special dividend for the year ended 30 September 2022 of 2 Cents (2021: nil)
per fully paid share paid in December 2022

60% franked (2021: nil) based on tax paid at 30%

6,491

2023
($’000)

2022
($’000)

Interim dividend for the year ended 30 September 2023 of 4.62 Cents (2022: 4.2 Cents)
per fully paid share paid in June 2023 (2022: June 2022)

60% franked (2022: 60%) based on tax paid at 30%

Total dividends paid

(b) Dividends not recognised at the end of the reporting period

Final

In addition to the above dividends, since year end the directors have recommended the payment
of a final dividend of 11.90 cents per fully paid ordinary share (2022: 10.82 cents) 60% franked
(2022: 60%) based on tax paid at 30% (2022: 30%).

The directors have also recommended the payment of a special dividend of 3 cents per share,
60% franked (2022: 60% franked).

The aggregate amount of proposed dividend expected to be paid out of retained earnings, but not recognised as
a liability at year end

14,995

56,605

13,673

46,127

2023
($’000)

2022
($’000)

38,637

34,988

9,740

6,467

48,377

41,455

The franked portions of the final dividends recommended after 30 September 2023 will be franked out of existing franking credits or out
of franking credits arising from the payment of income tax in the year ended 30 September 2023.

Franking account balance as at the end of the financial year at 30% (2022: 30%)

Franking credits that will arise from the payments of income tax payable as at the end of the financial year

Franking credits available for subsequent financial years based on a tax rate of 30%

2023
($’000)

2022
($’000)

402

6,712

7,114

171

1,197

1,368

The above amounts represent the balance of the franking account as at the end of the reporting period, adjusted for:

(a)

Franking credits that will arise from the payment of the amount of the provision for income tax

(b)

Franking debits that will arise from the payment of dividends recognised as a liability at the reporting date

The impact on the franking account of the dividend recommended by the Directors since the end of the reporting date, but not
recognised as a liability at the reporting date, will be a reduction in the franking account of $12,439,681 (2022: $10,659,985).

158

TechnologyOne Annual Report 202325 Directors and key management personnel disclosures

Short-term employee benefits

Deferred STI

Share-based payments

2023
($)

2022
($)

5,339,272

5,553,807

305,731

422,177

1,229,551

1,263,638

6,874,554

7,239,622

Equity instrument disclosures relating to key management personnel

Details of options provided as remuneration to KMP and shares issued on the exercise of such, together with terms and conditions can
be found in the remuneration report.

26 Remuneration of auditors
During the year, the following fees were paid or payable for services provided by the auditor of the consolidated entity:

(a) Ernst and Young (Australia)

Fees to Ernst and Young (Australia)

Fees for auditing the statutory financial report of the parent covering the group and auditing the statutory financial
reports of any controlled entities

Fees for other assurance and agreed-upon-procedure services

Fees for other services1

Total remuneration of Ernst & Young Australia

1 Other services include $301,734 in relation to taxation advice and $646,750 in relation to acquisition due diligence services.

2023
($)

2022
($)

772,356

878,450

223,300

948,484

214,987

197,241

1,944,140

1,290,678

27 Contingencies
TechnologyOne is a global business and from time to time in the ordinary course of business it receives enquiries from various regulators
and government bodies. TechnologyOne cooperates fully with all enquiries and these enquiries do not require disclosure in their initial
state, however should the Group become aware that an enquiry is developing further or if any regulator or government action is taken
against the group, appropriate disclosure is made in accordance with the relevant accounting standards.

As a global business, from time to time TechnologyOne is also subject to various claims and litigation from third parties during the
ordinary course of its business. The Directors of TechnologyOne have given consideration to such matters which are or may be subject
to claims or litigation at year end and, unless specific provisions have been made, are of the opinion that no material contingent liability
for such claims of litigation exists. The group had no material contingent assets or liabilities.

Guarantees

At 30 September 2023, the Group had $3,833,314 (2022: $3,745,483) in outstanding bank guarantees issued to TechnologyOne. The total
available guarantee facility is $8,300,000 (2022: $8,300,000). These guarantees relate primarily to office leases.

The parent entity, Technology One Limited, continues to support its subsidiaries in their operations, by way of financial support.

159

Making life simple for our communityNotes to the consolidated
financial statements
28 Related party transactions

(a) Ultimate controlling entity

The ultimate controlling entity of the consolidated entity is Technology One Limited, a company incorporated in Australia.

(b) Subsidiary entities

Interest in subsidiary entities are set out in note 29.

29 Controlled entities
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the
accounting policy described in note 1(b):

Country of
incorporation

Class of
shares

2023
(%)

2022
(%)

Equity holding

Technology One Corporation Sdn Bhd

Technology One New Zealand Ltd

Technology One UK Limited

Avand Pty Ltd

Desktop Mapping Systems Pty Ltd (DMS)

Malaysia

Ordinary

New Zealand

Ordinary

England

Ordinary

Australia

Ordinary

Australia

Ordinary

Digital Mapping Solutions NZ Limited (DMS)

New Zealand

Ordinary

Boldridge Pty Ltd

Icon Solution Unit Trust (ICON)

Icon Strategic Solutions Pty Ltd

Jeff Roorda and Associates Pty Ltd (JRA)

Scientia Resource Management Limited (UK)

Cyon Knowledge Computing Pty Ltd

Scientia Limited

Scientia P3M Limited

Cyon Knowledge Computing SDN BHD

Scientia GmbH

Cyon S.E Asia PTE Limted

Procyon Research Ltd

Australia

Ordinary

Australia

Ordinary

Australia

Ordinary

Australia

Ordinary

England

Ordinary

Australia

Ordinary

England

Ordinary

England

Ordinary

Malaysia

Ordinary

Germany

Ordinary

Singapore

Ordinary

England

Ordinary

100

`100

100

The parent entity is Technology One Limited, a public company, limited by shares and is domiciled in Brisbane, Australia and whose
shares are traded on the Australian Securities Exchange. All entities operate in the software industry in their geographical locations.
The Registered office is located at:

TechnologyOne HQ
Level 11,
540 Wickham Street,
Fortitude Valley, Qld, 4006

160

TechnologyOne Annual Report 202330 Reconciliation of profit after income tax to net cash inflow from

operating activities

Profit for the year

Depreciation and amortisation

Non-cash employee benefits expense - share-based payments

Finance costs

Other non-cash

Net (gain) / loss on sale of non-current assets

Movement in ECL through profit or loss

(increase) / decrease in trade and other receivables and contract assets

(increase) / decrease in prepayments and other current assets

(increase) / decrease in tax assets and liabilities

Increase / (decrease) in trade creditors

Increase / (decrease) in provisions

Increase / (decrease) in lease liabilities

Increase / (decrease) in deferred revenue

Net cash inflow / (outflow) from operating activities

2023
($’000)

102,876

53,502

5,827

602

(608)

‑

498

(5,237)

(5,901)

10,544

2,252

965

(2,148)

30,487

193,659

2022
($’000)

88,843

38,110

3,353

1,844

(6)

639

(6,771)

(6,568)

(3,466)

11,206

(1,067)

1,915

14,686

142,718

161

Making life simple for our communityNotes to the consolidated
financial statements
31 Earnings per share

(a) Basic earnings per share

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

2023
(cents)

31.71

31.54

2022
(cents)

27.51

27.38

Profit used for calculating basic and diluted earnings per share ($’000)

102,876

88,843

(b) Weighted average number of shares used as denominator

2023
(number)

2022
(number)

Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share

324,422,822

322,953,789

Adjustments for calculation of diluted earnings per share:

Options

Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating
diluted earnings per share

1,799,585

1,526,148

326,222,406

324,479,937

There are no potentially dilutive share instruments not included in the calculation of diluted earnings per share.

There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary
shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

32 Share‑based payments

(a) Employee option plan

Options are granted to employees at the discretion of the Board based on the option plan approved by the Board.

TechnologyOne issues options with up to 25% discount on the volume weighted average price for the 10 days prior to the grant date.

The period available between vesting date and expiry date of each option is five years. There are no cash settlement alternatives.

Each option entitles the holder to purchase one share. For non-KMP employees, covered extensively the Remuneration Report,
options granted as part of remuneration are based on values determined using the Black-Scholes option pricing model.

Set out below are summaries of options outstanding1 under the plan:

1 Options granted summaries below have been combined by issue date for presentation purposes, however grant date differ based on acceptance.

162

TechnologyOne Annual Report 2023-

0
0
0
0
5

2
0
9
8
0
1

2
0
9
3
7

5
8
7
4
2

0
0
5
6
1

0
0
0
0
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7
7
1
1
1
(

7
7
1
1
1

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8
0
4
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3

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9
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2
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163

Making life simple for our community

Notes to the consolidated
financial statements

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164

TechnologyOne Annual Report 2023

32 Share‑based payments (continued)
A total of 1,231,010 options (2022: 2,896,602) were issued to employees during the year.

The weighted average strike price at the date of exercise of options exercised during the year ended 30 September 2023 was $6.24 (2022: $4.25).

The weighted average remaining contractual life of share options outstanding at the end of the period was 6.6 years (2022: 7.0 years).

(b) Fair value of options granted

The fair value of the equity-settled options is measured at the reporting date taking into account the terms and conditions upon which
the instruments were granted.

The fair value of options granted during the year was between $2.32 and $7.42 (2022: $2.13 and $3.65).

The model inputs for options granted during the year ended 30 September 2023 included:

(i)

(ii)

Dividend yield of 1.35% (2022: 1.2%)

Expected volatility 33.89% (2022: 33.15%)

(iii) Risk-free interest rate 3.61% (2022: 1.24%)

(iv) Expected life of option 3.3 years (2022: 3.3 years)

(v) Option exercise price between $9.46 and $11.03 (2022: $12.31 and $9.23)

(vi) Weighted average share price at grant date was $12.64 (2022: $11.56)

The expected volatility reflects the assumption that the historical volatility of the Group’s share price over a period similar to the life of
the options is indicative of future trends, which may not necessarily be the actual outcome.

After further market consultation, the Group made the decision to return to issuing options or EPRs. Please refer to section 3 of the
remuneration report for further information.

(d) Expenses arising from share‑based payment transactions

Total expenses arising from share-based payment transactions recognised during the year as part of employee benefit expense were as follows:

Options issued under employee option plan:

Vested or yet to vest

Forfeited

Total share‑based payment expense

(e) Employee share plan

2023
($’000)

4,085

(178)

3,907

2022
($’000)

3,589

(236)

3,353

During the year the Group launched an Employee Share Plan which provides 1 bonus share (fully paid ordinary share) for every 2 shares
purchased by an employee.

An eligible employee under the plan is defined as a current permanent full-time or part-time Group employee who:

(a) has completed their probation period,

(b)

(c)

is 18 years or older, and

reside in Australia, New Zealand, the United Kingdom or Malaysia.

Eligible employees can opt into the plan and choose an amount to be deducted from their post-tax salary each month during the
contribution period (typically a 12-month period with the contribution capped at $25,000 AUD per person. This equates to a monthly
contribution cap of $2,083. This post-tax deduction is used to purchase TechnologyOne shares at market value at the end of each
contribution month.

Employees who participate in the plan will become entitled to one matched share for every two shares they acquire under the plan
subject to vesting conditions. The vesting condition attached to the bonus shares is that the employee must remain employed for one
month after the contribution period ends. A participant who satisfies the vesting conditions will become entitled to the matched shares
on the last day of the vesting period.

The fair value of the matched share is estimated at the measurement date using Black-Scholes option pricing model and is recognised
over the period that the matched share vests. FY23 was the first year that employees have been able to enter into the employee share
plan. The contribution period for the first offering was 1 January 23 to 30 June 23, with the vesting date being 31 July 23 and the second
offering is 1 July 23 to 30 June 2024, with the vesting date being 31 July 24.

165

Making life simple for our communityNotes to the consolidated
financial statements
33 Parent entity financial information

(a) Summary financial information

The individual financial statements for the parent entity show the following aggregate amounts:

BALANCE SHEET

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

SHAREHOLDERS' EQUITY

Contributed equity

Dividend reserve

Share option reserve

Retaining earnings

Profit or loss before tax for the year

Total comprehensive income

2023
($’000)

2022
($’000)

313,297

288,687

601,984

270,830

19,254

290,084

67,466

48,377

48,965

147,092

311,900

119,914

227,751

260,224

487,975

219,344

14,207

233,551

57,635

41,455

41,658

113,676

254,424

103,583

At 30 September 2023, the statement of financial position shows a current liability balance of $271m (30 September 2022: $219m)
which is largely attributable to the Deferred Revenue balance in current liabilities. As Deferred Revenue represents payments received
or receivable in advance from customers for SaaS Fees and Annual Licence Fees which will be recognised in future periods, and not a
future cash outflow, this balance does not impact the Group’s ability to meet its short-term obligations as and when they fall due.

(b) Guarantees entered into by the parent entity

At 30 September 2023, the Group had $3,833,314 (2022: $3,745,483) in outstanding bank performance guarantees. The total available
guarantee facility is $8,300,000 (2022: $8,300,000).

The parent entity, Technology One Limited, provides ongoing financial support to its subsidiaries in their operations.

At 30 September 2023, the Parent had no contingent liabilities. At 30 September 2022, the Parent had a provision for contingent
consideration as disclosed in note 19.

34 Events after the reporting period
On 21 November 2023, the Directors of Technology One Limited declared a final and special dividend on ordinary shares in respect of
the 2023 financial year. The total amount of the dividend is $48,376,534 and is 60% franked.

No other matter or circumstance has occurred subsequent to period end 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 or economic entity in subsequent financial years

166

TechnologyOne Annual Report 2023Directors' Declaration

Technology One Limited Directors' declaration 30 September 2023

In accordance with a resolution of the Directors of Technology One Limited, I state that:

In the opinion of the Directors:

(a)

the financial statements and notes set out on pages 125 to 166 are in accordance with the Corporations Act 2001, including:

(i)

(ii)

giving a true and fair view of the consolidated entity's financial position as at 30 September 2023 and of its performance for
the year ended on that date; and

complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Regulations 2001;

(b)

the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 1(a); and

(c)

(d)

there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable;
and

this declaration has been made after receiving the declarations required to be made to the Directors in accordance with section
295A of the Corporations Act 2001 for the reporting year ended 30 September 2023.

On behalf of the Board of Directors

Pat O’Sullivan
Chair

Brisbane
21 November 2023

167

Making life simple for our communityIndependent Auditor's Report
Independent Auditor's Report

168

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 111 Eagle Street Brisbane QLD 4000 Australia GPO Box 7878 Brisbane QLD 4001 Tel: +61 7 3011 3333 Fax: +61 7 3011 3100 ey.com/au Independent auditor’s report to the members of Technology One Limited Report on the audit of the financial report Opinion We have audited the financial report of Technology One Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 September 2023, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 30 September 2023 and of its consolidated financial performance for the year ended on that date; and b. Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. TechnologyOne Annual Report 2023169

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Measurement and recognition of revenue and associated assets and liabilities Why significant How our audit addressed the key audit matter The Group applies AASB 15 Revenue from Contracts with Customers to account for the following key revenue streams: ► SaaS fees; ► Annual licence fees; and ► Consulting services The measurement and recognition of revenue and associated assets and liabilities is considered to be a key audit matter due to the significance of revenue to the financial statements. Note 1(d) to the financial statements details the Group’s revenue streams and the associated accounting policies. Revenue is disclosed in Note 5, associated assets in Note 10 and Note 11 and associated liabilities in Note 17. Our audit procedures included the following: ► For a sample of customer contracts related to SaaS fees and Annual licence fees, assessed whether the revenue has been recorded appropriately, by: ► Agreeing the amounts recorded to contract, invoice and payment; and ► Reperforming the recognition of revenue based on the satisfaction of performance obligations. ► For a sample of consulting services contracts, we assessed the Group’s controls associated with the recording of consulting days delivered and the contracted fee rates applied to the days delivered. ► For deferred revenue (contract liabilities) and contract assets, we tested a sample of balances at year end, including: ► Agreeing the amounts recorded to contract, invoice and payment, where appropriate; and ► Recalculating the amount of the contract asset or contract liability balance at year end. ► Assessed the adequacy of the disclosures included in the financial report. Making life simple for our communityIndependent Auditor's Report

170

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Accounting for software development costs Why significant How our audit addressed the key audit matter As set out in Note 14 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 software development costs is considered to be a key audit matter due to: ► Judgement on whether the costs incurred relate to research costs, which are required to be expensed, or development costs which meet the definition of an intangible asset that is required for capitalisation; ► The assessment of the useful life of the asset and the timing of amortisation; and ► The assessment of future economic benefits and indications of impairment of the capitalised software development costs. We performed the following procedures in respect of the development costs capitalised: ► Assessed the nature of the Group’s projects and the policy of capitalisation of software development costs for compliance with the criteria in AASB 138 Intangible Assets. ► Held inquiries with R&D Directors and other team members, to understand the development activities undertaken. ► For capitalised salaries, we performed the following procedures: ► For a sample of employees, we agreed the salary rates used in the capitalisation calculation to underlying payroll records and employee contracts; and ► For a sample of time capitalised, agreed hours to the relevant timesheet and confirmed the associated work relates to activities eligible for capitalisation. ► For a sample of other directly attributable costs capitalised, agreed the amount to invoice or other supporting documentation and assessed the Group’s determination that the service or goods received was attributable to development activities. ► Considered the appropriateness of the amortisation period including the commencement date of amortisation for the capitalised software development costs and the timing of amortisation. ► Assessed the Group’s indicators of impairment of capitalised software development costs. ► Assessed the adequacy of the disclosures included in the financial report. TechnologyOne Annual Report 2023171

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Information other than the financial report and auditor’s report thereonThe directors are responsible for the other information. The other information comprises the information included in the Company’s 2023 Annual Report other than the financial report and our auditor’s report thereon. We obtained the Directors’ Report, the Corporate Governance Statement and the Voluntary Tax Transparency Report that is to be included in the Annual Report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the Annual Report after the date of this auditor’s report.Our opinion on the financial report does not cover the other information and we do not and will not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.Responsibilities of the directors for the financial reportThe directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.Auditor’s responsibilities for the audit of the financial reportOur objectives are to obtain reasonable assurance about whether the financial report as a whole isfree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:►Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence 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 theoverride of internal control.Making life simple for our communityIndependent Auditor's Report

172

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation ► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. ► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. ► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. ► Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. ► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. TechnologyOne Annual Report 2023173

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Report on the audit of the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 September 2023. In our opinion, the Remuneration Report of Technology One Limited for the year ended 30 September 2023, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Ernst & Young John Robinson Jennifer Barker Partner Partner Sydney Brisbane 21 November 2023 21 November 2023 Making life simple for our communityShareholder information
Shareholder information

The shareholder information set out below was applicable as at 27 October 2023.

(a) Distribution of Equity Securities

Number
of Shares

1-1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

There were 290 holders of less than a marketable parcel of ordinary shares (1.93% of shareholders).

(b) Equity Security Holders

Twenty largest quoted equity security holders

Name

JL Mactaggart Holdings Pty Ltd1

Masterbah Pty Ltd

Selector Funds Mgt (Sydney)

State Street Global Advisors (Sydney)

Vanguard Group (Philadelphia)

Hyperion Investor Mgt (Brisbane)

Macquarie Asset Management (Sydney)

Blackrock Investment Management (San Francisco)

Argo Investments (Sydney)

First Sentier Investors (Sydney)

Dimensional Fund Advisors (Sydney)

Fundsmith (London)

Alphinity Investment Mgt (Sydney)

Acadian Asset Mgt (Boston)

Vanguard Investments (Melbourne)

Plato Investment Mgt (Sydney)

Blackrock Investment Mgt (Australia)

Walter Scott & Partners (Edinburgh)

Wasatch Global Investors (Salt Lake City)

Goldman Sachs Asset Mgt (New York)

1 Substantial holder (including associate holdings) in Technology One Limited.

Details

TNEAI (Options)

TNEAJ (Performance Rights)

Number of
Shareholders

Percentage of
Shareholders

7,659

4,954

1,214

1,111

51.06%

33.03%

8.09%

7.41%

0.41%

Number
Held

Percentage of
Issued Shares

24,902,500

14,372,500

11,721,486

11,152,446

10,402,343

8,740,149

7,788,446

7,246,455

6,750,000

6,577,263

6,366,523

6,339,946

6,082,859

6,069,950

4,989,311

4,835,896

4,577,703

4,426,290

4,263,005

4,256,091

7.67%

4.43%

3.61%

3.44%

3.20%

2.69%

2.40%

2.23%

2.08%

2.03%

1.96%

1.95%

1.87%

1.54%

1.49%

1.41%

1.36%

1.31%

Number
on Issue

5,278,909

159,503

Number of
Holders

(d) Voting Rights
All ordinary shares issued by Technology One Limited carry one vote per share without restriction. Options and Performance Rights
have no voting rights.

174

TechnologyOne Annual Report 2023Corporate directory ‑
Technology One Limited
Board of Directors
Pat O'Sullivan

Branch Locations
Brisbane

Sydney

Melbourne

Canberra

Adelaide

Perth

Auckland

Wellington

Kuala Lumpur

London

Auditor
Ernst & Young

Level 51, 111 Eagle Street

Brisbane QLD 4000

www.ey.com/au

Edward Chung

John Mactaggart

Richard Anstey

Jane Andrews

Sharon Doyle

Cliff Rosenberg

Peter Ball

Company Secretary
Stephen Kennedy

Australian Business
Number (ABN)
84 010 487 180

Registered Office
Technology One Limited

Level 11, TechnologyOne HQ

540 Wickham Street

Fortitude Valley QLD 4006

Australia

www.TechnologyOneCorp.com

P. 1800 671 978

International: +617 3167 7300

Lawyer
McCullough Robertson

Level 11, 66 Eagle Street

Brisbane QLD 4000

www.mccullough.com.au

Share Registry
Link Market Services Limited

Locked Bag A14

Sydney NSW 1235

Phone: 02 8280 7454

Fax: 02 9287 0303

www.linkmarketservices.com.au

Stock Exchange Listing
Australian Securities Exchange
(ASX: TNE)

175

Making life simple for our communityTechnologyOne (ASX: TNE) is Australia’s largest
enterprise software company and one of
Australia’s top 100 ASX-listed companies,
with locations globally. We provide a global
SaaS ERP solution that transforms business
and makes life simple for our customers. Our
deeply integrated enterprise SaaS solution is
available on any device, anywhere and any
time and is incredibly easy to use. Over 1,300
leading corporations, government agencies,
local councils and universities are powered by
our software.

For more than 36 years, we have been
providing our customers enterprise software
that evolves and adapts to new and emerging
technologies, allowing them to focus on their
business and not technology.

ABN: 84 010 487 180

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TechnologyOneCorp.com

Australia | New Zealand | South Pacific | Asia | United Kingdom

Freecall 1800 671 978 (within Australia) | +617 3167 7300 (outside Australia)

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