Mel Gomes
H E A D O F I T C O M M E R C I A L
M A N A G E M E N T & C O N T R A C T S
Royal Holloway, University of London
Annual
Report.
2 0 2 4
Annual
Recurring
Revenue
up 20%
Profit
Before
Tax
up 18%
UK Sales
Annual
Recurring
Revenue
up 70%
These graphs should be read in conjunction with the
financial highlights table on p.15
Net
Revenue
Retention
117%
Annual Recurring Revenue
FY22
$320.7M
FY23
$392.9M
FY21
$257.5M
FY20
$221.9M
FY24
$470.2M
UP
20%
Profit Before Tax
FY22
$112.3M
FY23
$129.8M
FY21
$97.8M
FY20
$82.5M
FY24
$152.9M
UP
18%
Net Revenue Retention
FY22
116%
FY23
119%
FY21
112%
FY20
107%
FY24
117%
117%
FY22
$2.7M
FY23
$5.1M
FY21
$1.6M
FY20
$1.2M
FY24
$8.7M
UP
70%
Making life
simple for our
community.
3
Making life simple for our community
Two major
software releases
a year. We focus
on customer
evolution.
Build an app faster
without having to
code.
An all-inclusive
offering specifically
tailored for your
industry.
Best in class, global
support providing
customers with 24/7
assistance.
Integrated
GPS, AI, camera &
machine learning
functionality.
Simplicity in the
hands of your
customers .
19 products
strategically
focused over key
industries.
One simple
intuitive UX
focused
workplace for
everything.
Highest level
security
accreditations in
the industry.
Built on a code
base that is set up
for future
innovation & is
highly scalable.
We take care of
the upgrade so
you can focus on
the future.
500+ modules
with over
10,000
capabilities.
Explore hours of
training to help
you every day.
What’s
inside.
Our history
Our growth
At a glance
Our operations
Financial highlights
Our people
Letter to shareholders
TechnologyOne Foundation
Our strategy
Financial report
Directors’ report
Independent auditor’s declaration
Remuneration report
Financial statements
Consolidated entity disclosure statement
Directors’ declaration
Independent auditor’s report
Shareholder information
Corporate directory
70
82
83
125
166
167
168
174
175
A SaaS+ company
6
40
8
46
15
56
16
64
26
68
32
5
Making life simple for our community
w
19
87
From one of
Australia’s
first startups
to an
ASX 100
listed
company
37
years
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 start-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 customised 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 the same software, we could then ship
new releases every year, with new features
and functionality.
1988
Adrian knew that using technology to get a
competitive advantage would be the number
one factor in our success, so he named the
company TechnologyOne. TechnologyOne
was one of the earliest developers in the
world to use relational database technology.
1991
TechnologyOne released its first product,
called FinanceOne, using the Oracle
relational database technology (RDBMS).
1993
TechnologyOne made the decision to shift
away from Oracle’s RDBMS, to become
database independent. That same year,
TechnologyOne pivoted from being best-
of-breed to become one of the first ERP
vendors.
TechnologyOne’s 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.
1995
TechnologyOne software was voted the #1
Software for Financial Management and
Accounting by a survey of 3,000 CFOs by
MIS magazine. TechnologyOne repeated
this win three years in a row. TechnologyOne
broke away from the industry ‘reseller model’
and adopted our unique Power of One
model, taking responsibility to build, market,
sell, implement and support its software.
Our history
1996
With the rise of PCs, TechnologyOne
became an early adopter of PCs for
enterprise systems, rebuilding its suite
of products in a new and emerging
technology called client/server. That
same year, FinanceOne for Windows
was released.
1998
TechnologyOne broke away from the
approach taken by global ERP vendors like
Oracle and SAP of focusing on all markets,
and focused on six vertical markets:
Education, Local Government, Government,
Health & Community Services, Asset
& Project Intensive, and Corporate &
Financial Services. This allowed us to
build deep functionality out-of-the-box
for these markets, to create a significant
competitive advantage.
1999
TechnologyOne floated on the Australian
Securities Exchange (ASX) in 1999.
TechnologyOne was one of the first IT
companies to become publicly listed and
one of the most successful listings in 1999.
2002
TechnologyOne acquired Proclaim Pty Ltd,
for its Property & Rating product extending
TechnologyOne’s Local Government
enterprise solution.
2003
With the emergence of the internet,
TechnologyOne became an early adopter,
rebuilding our entire ERP system for the
internet. TechnologyOne Ci (Connected
Intelligence) was released.
2006
TechnologyOne released preconfigured
solutions for each of our key vertical
markets, dramatically reducing the
time, cost, and risks associated with
implementing its ERP software.
2012
With the emergence of the cloud,
TechnologyOne became an early adopter
of the cloud for enterprise software, re-
architecting our ERP system. Delivering a
multi-tenanted global ERP SaaS system,
providing huge economies of scale
enabling us to take full responsibility for
our customers – building, implementing,
and running our software for them. Our
customers can easily and seamlessly move
from on premise to the cloud.
2014
TechnologyOne SaaS was released.
With the emergence of mobile devices,
TechnologyOne rebuilt our ERP systems
to provide any device, anywhere, at
any time access. One hundred percent
of TechnologyOne ERP functionality is
available across all devices including
mobile phones. The new product Ci
Anywhere (CiA) was released in 2014. In the
same year, TechnologyOne hit $1 billion
market capitalisation and entered the
ASX 200 Index.
2015
TechnologyOne makes three acquisitions:
ICON Software, Digital Mapping Solutions
and Jeff Roorda & Associates. The
acquisitions broadened the breadth and
depth of TechnologyOne’s enterprise
solutions, adding planning, spatial
and strategic asset management
functionality to our suite of products for
Local Government and Higher Education
markets. In the same year, Adrian Di Marco
was listed on SmartCompany’s top 10
most influential people in the Australian IT
industry, inducted into the Pearcey Hall of
Fame, and named as 2015’s top 10 CEOs
by AFR Boss magazine.
2017
TechnologyOne launched the
TechnologyOne Foundation, committing
to raise 500,000 children and their families
out of poverty. TechnologyOne is also
committed to the 1% Pledge – committing
1% of profit, staff time and products to
its Foundation. Adrian Di Marco steps
down as CEO but retains Executive Chair
position and appoints Chief Executive
Officer, Edward Chung, and we finished
the year with a market capitalisation of
$1.56 billion.
2021
TechnologyOne made its first international
acquisition, Scientia, as part of our
strategic focus to deliver the deepest
functionality for Higher Education,
becoming the only ERP provider in the
world to offer this solution to the higher
education market, as part of a full
enterprise suite.
2022
TechnologyOne partnered with the
University of Lincoln to go live with our
state-of-the-art Student Management
system. Making the University our first
UK institution using the internationally
trusted system and joining over 100
higher education customers utilising
TechnologyOne products in the UK.
Adrian Di Marco commenced his
retirement, handing the reigns of Non-
Executive Chair to Pat O’Sullivan.
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 with a
market capitalisation of $4.99 billion and
launched their game- changing SaaS
Plus strategy which removes the need
for traditional, long, complex, risky, and
expensive implementations. Aligning with
our SaaS Plus strategy, FY23 also saw
the completion of moving our on-premise
customers to SaaS, with over 70% of
customers now realising the benefits
of SaaS.
2024
TechnologyOne solidified our SaaS Plus
offering in market and became a SaaS
Plus company, while committing to deliver
ERP in 30 days. In FY24, we hosted two
milestone events, Company Kick Off (CKO)
and Investor Day. CKO was our biggest
ever internal event ever where the global
team came together for three days in
Brisbane and immersed themselves in the
future of TechnologyOne. Our inaugural
Investor Day was hosted at our Brisbane
HQ and provided attendees with a
detailed look at our strategic vision
and product suite.
7
Making life simple for our community
Our finances
Financial highlights
11
15
At a glance
Michelle Gillespie
C H I E F S T U D E N T O F F I C E R
Victoria University
9
Making life simple for our community
A SaaS+ Company
Delivering end-to-
end solutions built
with customers
in mind. Allowing
them to focus on
the communities
they serve. We are
disrupting the ERP
market with SaaS
Plus and it is made
possible through the
Power of One
At a glance
UP 20%
UP 19%
UP 15%
UP 24%
UP 18%
$128.0M
$500M
ARR
30%
UP 17%
UP 70%
15 years
UP 25%
total ARR
$470.2M
$505.6M revenue from
SaaS & continuing
business
dividend of
22.45cps
$379.3M
net assets
$152.9M profit
before tax
R&D investment up
14% (25% of revenue)
on track to surpass
by H1 2025
profit before
tax margin
total revenue
$515.5M
UK sales ARR $8.7M
continued record profit
$278.7M cash and
cash equivalents
11
Making life simple for our community
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.
Through SaaS Plus, leveraging the
Power of One, we deliver a global
SaaS ERP solution that 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 1,300 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 recognise 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
1,300 large-scale companies, and
with more than 37 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.
Delivered through a reimagined
implementation approach, SaaS Plus,
dtigital transformation is fast, simple,
and low risk.
one code-line,
one plan,
one price,
one point of call.
At a glance
Our markets
•
Local Government
•
Education
•
Government
•
Health and Community Services
•
Asset and Project Intensive
•
Corporates and Financial
Services
Our preconfigured solutions
•
OneCouncil
•
OneEducation
•
OneGovernment
•
OneBase
•
OneCouncil UK
•
OneEducation UK
Our products
•
App Builder
•
Corporate Performance
Management
•
Enterprise Content Management
•
Human Resources & Payroll
•
Spatial
•
Supply Chain Management
•
Enterprise Cash Receipting
•
Enterprise Asset Management
•
Financials
•
Property & Rating
•
Student Management
•
Business Analytics
•
Enterprise Budgeting
•
Performance Planning
•
Timetabling & Scheduling
•
Curriculum
•
DxP Local Government
•
DxP Student
•
DxP Essentials
Our research & development
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.
New ideas, new concepts
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 37+ years we
have completely redeveloped our
software platform four times.
Ca..
Cant..
Don..
Expe..
Gen..
Inter..
Salar..
Salar..
Empl..
Utiliti..
High..
Mate..
May..
Ed.. Fin..
Gl..
Go.. Go.. Hig.. Hu..
Inf..
Re..
Expenses by Department
Radial Guage
0
2.2M
Liquid Guage Mobile
My Analytics
My Timesheets
My Tasks
Forms
My HR and Pay
1
360 Reviews
3
My leave
4
Home
My
Payroll
29
13
Making life simple for our community
Financial
highlights
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.
n. noun. /sæs Plus/
Financial highlights
2024
$’000s
2023
$’000s
Growth on
last year
15-year
compound
growth
2022
$’000s
2021
$’000s
2020
$’000s
2019
$’000s
2018**
$’000s
Comparable
2017
$’000s
2016
$’000s
2015
$’000s
Revenue -
SaaS and
Continuing
Business
505,603
426,379
19%
-
358,668
293,553
269,774
241,790
221,046
231,151
192,657
175,279
Total Revenue
515,426
441,363
17%
10%
369,391
312,012
299,018
286,164
254,491
273,253
249,018
218,724
Annual
Recurring
Revenue
(ARR)1
470,178
392,884
20%
-
320,694
257,495
221,908
202,480
173,912
153,896
126,996
108,853
R&D
Investment
127,995
111,995
14%
12%
92,197
77,005
68,062
60,124
54,042
49,856
46,009
41,038
Net Profit
Before Tax
152,874
129,854
18%
14%
112,320
97,843
82,470
76,389
50,807
58,019
53,240
46,494
Net Profit
After Tax
118,014
102,876
15%
14%
88,843
72,691
62,945
58,459
47,681
44,494
41,344
35,785
Earnings Per
Share (Cents)
36.24
31.71
14%
14%
27.51
22.64
19.75
18.43
15.10
14.18
13.26
11.57
Total
Dividends
(cents per
share)
22.45
19.52
15%
13%
17.02
13.91
12.88
11.93
11.02
10.20
9.45
8.78
Dividend
Payout Ratio
62%
62%
-
-
62%
62%
65%
65%
73%
72%
72%
76%
Cash, Cash
equivalents
and
short-term
Investments
278,689
223,265
25%
16%
175,865
144,210
125,244
105,046
104,322
93,383
82,588
75,536
Net Assets
379,262
306,006
24%
13%
239,097
190,234
142,168
106,857
103,480
157,520
138,494
117,940
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.
15
Making life simple for our community
Letter to
shareholders
Results summary
Afterword
18
23
Huw Davies
C H I E F D I G I TA L O F F I C E R
QUT
17
Making life simple for our community
1990
1997
2005
Letter to shareholders
2010
2017
2024
On behalf of
TechnologyOne
Limited
Continuing strong performance
we are pleased to announce our
15th consecutive year of record
profit, record revenues, and record
SaaS fees. Our global SaaS ERP
solution and our game-changing
SaaS+ offering is making life simple
for our community.
TechnologyOne has consistently
delivered strong results since listing on
the ASX in 1999. Our ability to deliver
these results for over 25 years is due
to our clear vision, strategy, culture
and ongoing investment in R&D, which
was validated in March 2023 as we
entered the ASX 100 index.
19
Making life simple for our community
Profit Before Tax, up 18% – Beating guidance set in
May 2024 of 12%-16% profit growth.
Total Annual Recurring Revenue (ARR), up 20% –
Driven by the significant value proposition of our
global SaaS ERP solution and our game-changing
SaaS+ offering.
We are 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.
UK Sales ARR, up 70% – Our long-term investment in
the UK continues to build momentum.
Net Revenue Retention (NRR) of 117%, above the long-
term target of 115% – Existing customers continue to
expand their use of our global SaaS ERP solution to
streamline their operations.
A new long-term target of $1b+ ARR by FY30 – With
$500m ARR firmly in sight (18 months earlier than the
original target date), we have now set our ambitions
higher. During our first Investor Day in July 2024 we
announced a new long-term target of $1b+ ARR by
FY30.
Building the future, enabling us to continue to double
in size every 5 years – With strong results and a
strong sales pipeline, we upheld our ambitious R&D
investments to enable us to continue to double in size
every five years. These include additional investments
in the UK, new products and modules, including DxP,
App Builder and SaaS+.
Strong balance sheet and strong cashflow
generation greater than 100% of NPAT – We delivered
strong cashflow generation to NPAT ratio of greater
than 100%. With significant cash and investment
holdings of $278.7 million and no debt, our balance
sheet retains flexibility and strength for further
inorganic growth in the future.
Acquisition of CourseLoop – post the period end, we
completed the acquisition of CourseLoop. A world-
leader in curriculum management, this acquisition
complements our suite and provides us with great
IP. With the addition of CourseLoop’s Curriculum
Management, TechnologyOne’s OneEducation
solution has become the world’s first SaaS platform
to encompass the entire student lifecycle – from
course design to graduation – into a single unified
ERP solution.
These points are discussed later in more detail.
Highlights
for the
year
Letter to shareholders
Results
summary
Key results were as follows:
Total Annual Recurring Revenue (ARR) up 20%
Adoption of the TechnologyOne global SaaS ERP
solution and our SaaS+ offering exceeded our
expectations, with customer adoption driving total
ARR to $470.2 million, up 20%.
All of our key verticals performed strongly throughout the
year, with our Government vertical growing 41%, up $22m
and Local Government growing 22%, up $32m.
In Local Government, our team closed over 30 significant
deals in FY24. TechnologyOne won a project to transform
Penrith Council’s core ERP system. Penrith City Council
manages around 80,000 rateable properties, is one of
Sydney metropolitan’s largest Local Government areas
and is considered one of the city’s fastest growing
regions. As a long-time TechnologyOne customer using
just some of the OneCouncil functionality, the Council
came to market for a best-practice total ERP solution
to take them into the 2030s. Their decision to choose
TechnologyOne reflects our reputation for delivering
robust, future-focused solutions that specifically meet
the needs of growing and evolving communities.
We are the world’s first
SaaS+ ERP company
Having successfully completed our transition to become a
100% SaaS company, we have pivoted to our next major
innovation, becoming the world’s first SaaS+ company.
SaaS+ is a game changer in the ERP industry.
It is the next logical evolution of SaaS where
TechnologyOne delivers the entire outcome faster,
with minimal risk and in an annual fee to our customers.
SaaS+ delivers 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 37 years and our highly
skilled in-house consulting team.
•
Profit Before Tax of $152.9m, up 18%, beating
guidance of 12%-16% growth
•
Profit After Tax of $118.0m, up 15%
•
Total Annual Recurring Revenue (ARR)1 of
$470.2m, up 20%
•
On track to surpass $500m ARR by H1 FY25
•
Net Revenue Retention (NRR) of 117%,
above our long-term target of 115%
•
Total Revenue of $515.4m, up 17%
•
Revenue from our SaaS and Recurring Business
of $466.3m, up 19%
•
Expenses of $362.6m, up 16%
•
Cash Flow Generation2 of $119.0m, up 14%
•
Cash and Investments of $278.7m, up 25%
•
Full Year Dividend of 22.45 cps, up 16%
•
R&D investment of $128.0m before capitalisation
consistent at 25% of revenue
Net profit after tax
Net Profit Before Tax
FY16
$53.2M
FY17
$58.0M
FY15
$46.5M
FY14
$40.2M
FY18
$50.8M
FY20
$82.5M
FY21
$97.9M
FY19
$58.5M
FY22
$112.3M
FY23
$129.9M
FY24
$152.9M
UP
18%
1ARR represents future contracted annual revenue at year end.
This is a non-IFRS financial measure and is unaudited.
2Cash 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.
21
Making life simple for our community
A traditional implementation of our
multinational competitor product
undertaken by third-party consulting
firms or the big four accounting firms,
typically takes thousands of days.
During FY24, TechnologyOne set an
ambitious goal of delivering ERP in 30
days in the next five years. This goal
will totally transform our industry as
we deliver what our customers truly
need – a solution to streamline their
business, not years of traditional,
complex and risky consulting
implementations. Our OneBase
solution presently takes 160 days
to implement, and we are hyper-
focused on reducing this to 30 days.
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.
UK sales ARR, up 70%
We have seen our UK business
continue its growth trajectory, with UK
sales ARR up 70% to $8.7m and total
UK ARR up 31% to $34.7 million. We
delivered a profit of $2.9 million, down
from a profit of $3.7 million last year;
this was expected as we carefully
manage our transition to SaaS+, and
we have also committed additional
investment to ensure future growth.
We see significant opportunities in
the coming years in this market, which
considerably exceeds the size of the
APAC market.
We continue to see momentum build
in the UK, especially in the Higher
Education sector, with the University
of Buckingham and the University of
Chester both investing in our solutions
in FY24.
The University of Chester is a well-
established institution with a history
dating back to 1839, serving over
15,000 students today. They faced
challenges with legacy vendors for
Financials and Student Management
that offered no clear path to SaaS
and needed more investment in
improving their products. They saw
TechnologyOne’s true SaaS solution
with full ERP capabilities, defence-in-
depth security and more than $125
million R&D investment as the clear
path to modernise the university.
Furthermore, with our SaaS+ design,
the implementation risk to the
university has been significantly
diminished – a critical factor in the
University of Chester choosing to
partner with us.
Our ERP offering along with the
breadth and depth of functionality
that we bring to 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 other functionalities in the UK to
accelerate our growth.
Net Revenue Retention (NRR)
of 117%, beating long-term
target of 115%
In FY24, we delivered Net Revenue
Retention of 117%, which is industry-
leading in the ERP market and above
our long-term target of 115%. This
gives us confidence that we will
continue to double in size every
five years.
It’s clear that our products and
solutions are resonating with the
market. Customers continue to take
up more TechnologyOne products
and modules as they embrace our
enterprise vision and the consequent
substantial efficiencies and
productivity lift.
We focus on signing a new customer
with products such as Financials,
Property and Rating, or Student
Management and then expanding
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 our team’s available
whitespace and runway to sell
additional value to our existing
customers.
Our SaaS customers continue to
take up products and modules faster
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 FY24.
A new long-term target of
$1b+ ARR by FY30
The revenue quality from our
latest generation global SaaS ERP
solution is exceptionally high, given
its recurring contractual nature,
combined with our long-term,
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 continuing solid growth in the
new year.
Today our total ARR is $470.2 million,
up 20%. During the year we upgraded
our medium-term target for the
second time to now surpass $500
million ARR by H1 FY25 (previously, “we
will surpass $500 million ARR by FY25”
and before that “we will surpass $500
million ARR by FY26”).
With this target firmly in sight, we
have now set our ambitions higher
and during our first Investor Day in
July 2024, we announced a new
long-term target of $1b+ ARR by
FY30. Our significant investments for
growth including expanded products
and modules, acquisitions, the UK,
new products such as DxP and App
Builder and SaaS+ underpin this.
Building the future, enabling
us to continue to double in
size every 5 years
TechnologyOne invested $128 million
in R&D this year, up 14% on the
previous corresponding period, an
investment that underpins our future
platforms for growth.
Our R&D program continues to be at
the leading edge of our industry as
we embrace new technologies, new
concepts, and new paradigms.
Letter to shareholders
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+, App Builder and Digital
Experience Platform (DxP) for Local
Government and Higher Education.
Our sixteenth product, DxP Local
Government, was released for
general adoption and extends our
ERP from traditional back-office users
to residents.
These investments in R&D and SaaS+
build our future platforms for growth
and enable our ability to continue
to double in size every five years. As
always, we manage this significant
investment within our total cost base,
continuing to balance strong profit
growth with investment for the future.
Acquisition of CourseLoop
Post the period end, we acquired
CourseLoop, a company servicing
the higher education sector. This
acquisition forms part of our strategic
focus to deliver the deepest
functionality for the Higher Education
market.
With the addition of CourseLoop’s
Curriculum Management,
TechnologyOne OneEducation
has become the world’s first SaaS
platform to encompass the entire
student lifecycle – from course design
to graduation – into a single unified
ERP solution.
Integrating a Curriculum Management
capability with TechnologyOne’s
market-leading Student
Management, Timetabling and
Scheduling, Human Resource and
Payroll, Enterprise Asset Management
and Financials capabilities will
provide, for the first time, full visibility
across the entire academic cycle.
Curriculum Management will provide
Higher Education institutions with
data-driven insights via a single
source of truth to create courses
that meet market demands,
what students want to study, are
financially sustainable and deliver
student success and institutional
differentiation.
We are excited about the
opportunities this will bring to both
our UK and Australian customers in
the coming years. The impact on our
FY25 group profit will be insignificant,
and we expect the acquisition to be
EPS accretive in FY26.
Profit Before Tax margin
improved to 30%
We generated a Profit Before Tax
margin of 30%, compared to 29% in
the previous corresponding period.
This return to growth in margin
includes a negative impact from our
careful transition to SaaS+ of $3.0m.
Had we not taken this approach, our
profit before tax margin would have
been approximately 1% better.
This shift from traditional new
project consulting revenue to
SaaS+ revenue will have similarities
to our successfully completed
transition from legacy license fees
to SaaS revenue. This strategic move
over time removes lower quality, one-
off traditional consulting revenue and
replaces it with high-quality, recurring
revenue. A small headwind to our
margin growth in the short
term will enable a significant tailwind
in the long term on profit before
tax margin.
Notwithstanding our strategic shift
to SaaS+ and the small headwind to
our margin growth in the short term,
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 continue to succeed because
of our consistent strategy, mission,
purpose, core beliefs, values,
leadership philosophies and
Compelling Customer Experience.
Post completion of our 24-month
refresh of the TechnologyOne Way
and Culture Book, which contains
a collection of stories that explain
to new starters and remind long-
timers what makes TechnologyOne
special and how we make the
impossible possible; we commenced
the creation of Playbooks by
department. These Playbooks
codified the art and science of each
our key disciplines including People
Leadership, Sales, Consulting and
Research and Development.
During the year, we promoted more
than 15 per cent of our people or
UK Sales Annual Recurring Revenue
FY22
$2.7M
FY23
$5.1M
FY21
$1.6M
FY20
$1.2M
FY24
$8.7M
UP
70%
UK Sales Annual Recurring Revenue
FY22
$2.7M
FY23
$5.1M
FY21
$1.6M
FY20
$1.2M
FY24
$8.7M
UP
70%
1Excluding one-off Scientia acquisition accounting impact and the acquisition due diligence costs incurred in FY23.
23
Making life simple for our community
220 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 48% of senior roles against an
industry average of 25%. Our overall
representation of women across all
roles at TechnologyOne is now 39%.
In the second year of what we
believe to be Australia’s best
Employee Share Plan, which provides
one free share for every two shares
purchased by our employees, 55%
of our current team members have
become owners of TechnologyOne
to share in the growth of our great
company.
To continue to double in size every
five years, we invest heavily in our
leaders through our Leadership
Summit. This year, 111 of our leaders
attended the Summits which
supported their growth, taught
them the TechnologyOne Way and
equipped them to lead our teams
to make the impossible possible.
The first cohort graduated in FY23, a
second cohort graduating this year
and a third started in July 2024.
Strong balance sheet and
strong cashflow generation
greater than 100% of NPAT
TechnologyOne continues to maintain
a strong balance sheet with net
assets of $379.3 million, up 24% and
cash and investments of $278.7
million, up 25%. Cash Flow Generation
(CFG) was once again strong at
$119.0 million for the full year, versus
a Net Profit After Tax of $118.0 million;
a CFG to NPAT ratio of 101%. This
provides us with significant flexibility
and strength for future inorganic
growth. High levels of recurring
revenue, strong cashflow generation,
and a strong new business pipeline
provide us with confidence in the
future. Consequently, we took time
to consider our capital management
position in FY24. As such, we have
taken steps to implement the
following actions.
1.
Dividend Policy Update: The
dividend policy has been revised
from a growth target of 8-10%
to a payout ratio of 55-65%. This
change allows dividend growth
to align more closely with net
profit after tax growth, while
balancing stability, rewarding
shareholders, and maintaining
capacity to invest for growth.
2.
Equity Management Policy: A
new policy has been established
to purchase staff-related equity
needs on market instead of
issuing new shares. This measure
aims to reduce dilution and
manage the capital base
effectively.
3.
Inorganic growth: The Acquisition
of CourseLoop. This is an
important bolt-on acquisition for
our Higher Education solution
which makes our offering deeper
and more unique than any other
education software provider in
the world.
We emphasise our ongoing
commitment to capital management
initiatives, reflecting a prudent yet
strategic approach to investments for
growth while maintaining discipline in
execution.
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 our final FY24 dividend of
17.37 cents per share, a payout ratio
of 62%.
For the full year, our dividend has
increased to 22.45 cents per share,
up 15% on the prior year consistent
with our Net Profit After Tax growth
of 15%.
Executive remuneration
TechnologyOne remains focused
on delivering strong growth and
our current remuneration structure
positions us well to continue to
achieve this –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 FY24. When many businesses
have struggled to deliver in uncertain
economic and geopolitical times,
TechnologyOne has delivered
exceptional growth – Total ARR
growth of 20%, Net Profit Before Tax
growth of 18% and upgraded our
medium-term guidance a second
time to surpass $500 million ARR by
H1 FY25.
Our three-year rolling TSR is 115% and
annual TSR is 55%. 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 third-year benchmarking and
reporting under the recommendations
of the Task Force on Climate-related
Financial Disclosures (TCFD). We
have made a significant reduction
in our Scope 1 and Scope 2 carbon
footprint in FY24 by switching to
purchasing renewable energy for all
locations where it is available.
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 who are
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.
Letter to shareholders
Outlook for full year 2025
The economic outlook and geopolitical issues continue to
create uncertainty, but TechnologyOne has seen difficult
and challenging economic environments many times in the
past 37 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 using our global SaaS ERP solution.
The TechnologyOne global SaaS ERP solution and our
SaaS+ offering are driving our continuing success. As a
result, TechnologyOne’s sales pipeline of opportunities for
FY25 is strong and this positions us for continuing strong
ARR and profit growth in FY25.
We are on track to deliver $500m ARR by H1 FY25 well
ahead of initial targets. We set our ambitions higher with a
long-term target of $1b+ ARR by FY30.
The company will provide further guidance at both the
Annual General Meeting and the FY25 first-half results.
*For more details on these event dates, please see our
website.
Afterword
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 enable our customers to embrace the exciting future
that is possible.
We will continue to earn the right to be the enterprise
software partner for our customers by doing just this. At
every touchpoint we have worked with our customers,
we will strive to make things simpler for them and provide
them a great experience.
We have 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. FY24 has been another amazing year
for the company, thanks to all of you.
We would also like to thank you, our shareholders, for your
continuing support.
Pat O’Sullivan
Edward Chung
Chair
Chief Executive Officer
The Foundation will continue to
grow with TechnologyOne through
our commitment to the 1% Pledge
– which sees us donate 1% profit,
1% product and 1% time every year.
This represents a commitment of
more than $2 million each year.
The TechnologyOne Foundation will
keep inspiring and defining the core
values driving our company and team
forward.
Please refer to the TechnologyOne
website for our full Sustainability
Report and Corporate
Governance Statement.
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. This year we welcomed Mr
Paul Robson to our Board. Paul is an
accomplished senior executive with
nearly 30 years of experience in the
technology sector, driving growth and
innovation across global markets. He
is currently the CEO of the Australian-
grown accounting software company
MYOB.
We would like to recognise John
MacTaggart, who, after 37 years of
service as a non-executive director,
retired from the company on 21
February 2024. As a former customer
of Adrian’s, John and his father were
the first investors in TechnologyOne
before the emergence of VC
funding in Australia. They believed
in Adrian and TechnologyOne and
have supported our strategy, which
includes our ambitious and significant
R&D agenda and four generations
of our ERP, the most recent being our
shift to SaaS. We wish him well in his
future endeavours.
We also note that Mr Rick Anstey
will retire in February 2025 following
the AGM after 19 years of service to
TechnologyOne.
25
Making life simple for our community
Our
strategy
Mission & purpose
Our core beliefs
28
29
David Howie
T E A M L E A D E R - F I N A N C E & PAY R O L L
New Zealand Parliamentary Service
27
Making life simple for our community
Our passion
is to solve
the complex
Our core
beliefs
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.
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 37 years ago and continues to
define the way we operate.
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.
Our strategy
The Power of One
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 Plus
leverages the Power of One and is a
true symbiotic partnership with our
customers – it benefits us both.
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 & commitment
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 answer
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.
Evolution not revolution
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 dream big and deliver
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.
29
Making life simple for our community
At TechnologyOne, our mission is
to better 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.
Making life
simple for our
community
Our strategy
31
Making life simple for our community
A SaaS+
Company
Michelle Yoon
F I N A N C E M A N A G E R
Queensland Parliamentary Service
33
Making life simple for our community
SaaS Plus enables our
customers to digitally
transform while serving
their communities.
All our customers’ ERP needs are in
one place with Solution as a Service
(SaaS Plus). We’re leveraging over 37
years of unique domain experience
and unwavering commitment to our
key markets by taking complete
responsibility to deliver outcomes
with our best-in-class SaaS ERP.
Delivering an end-to-end solution built
with customers in mind. TechnologyOne
takes full responsibility for the solution
experience – reducing project and
organisational risk, while saving time
and money for our customers, and
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 ERP
solutions. With our deep industry
knowledge, we’ve developed
preconfigured solutions that utilise
business process architecture, enhance
solution documentation and delivery
through a reimagined implementation
approach.
Harnessing TechnologyOne’s unique
‘Power of One’, SaaS Plus enables
fast, simple, and low risk digital
transformation, offering 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 traditional
implementations that can be risky,
complex and lengthy. SaaS Plus will
change the world of ERP solutions
and move us forward into the future.
Focus on what
really matters
and let us
take care of
your solution
experience.
In FY24, TechnologyOne were selected as a winner for Business Innovation
in the Australian Business Awards 2024 for our cutting-edge SaaS Plus
implementation model. The award recognises organisations that have
successfully implemented initiatives that demonstrate leadership and
commitment to business innovation.
A SaaS+ Company
Leading SaaS ERP
Our SaaS platform runs on 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 over
$128 million investment in R&D in FY24.
TechnologyOne makes a substantial
investment each year in ongoing R&D
to continue to improve our software
and capitalise on new technologies,
concepts, and ideas.
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 19 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 proofing that would not be
otherwise possible.
Our customers are always on the
latest technology, with access to two
releases of software per year that
deliver 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,
2024B, redefines efficiency, elevating
success for our customers with
lightning-fast time to value.
We are now working on the next
generation of our SaaS solution,
2025A. 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.
Any device, anywhere,
at any time
Through our award-winning CiA
platform, 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.
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.
2.2M
Liquid Guage Mobile
Radial Guage
4.1M
0
100
Search
Select all
Asset Expenses
General Costs
Employee Expenses
Income General
+ Expenses
13,696
10,611
18,849
+ Revenue
15,307
7,506
23,450
Profit & Loss (‘000)
Account Category
YTD Actuals
YTD Budget
Forecast
YTD Variance
3,085
(7,801)
1,612
3,105
(4717)
%
22.5%
51.0%
292.7%
4,601
1.9M
YTD Expenditure Breakdown
Expenses
Financial
Expenses
General
Expenses
5M
2.5M
0
Jul
Aug
Sep
Oct
Nov
Dec
35
Making life simple for our community
Defence in Depth
Leveraging the Power of One and security intelligence,
TechnologyOne offers a differentiated approach to
security and compliance. In FY24, our unique approach
was affirmed with the award of the first patent in
TechnologyOne’s 37-year history.
Through state-of-the-art and engineering principles
we’re protecting our customers with cutting-edge
patented security intelligence, simplifying GRC,
accelerating audit processes, and ensuring compliance
with a single, integrated solution.
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)
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.
A SaaS+ Company
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.
App 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.
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. TechnologyOne has released
DxP Essentials and DxP Local Government and is
continuing to work on the development of DxP Student.
37
Making life simple for our community
Our commitment to innovation
In FY24, we invested over $128
million in R&D to improve our SaaS
offering with new enhancements
and 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.
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.
It is through our commitment to
innovation that we are now investing
in the next generation of apps to
make our customers lives even
simpler.
With App Builder, DxP, and SaaS Plus
we are constantly innovating, and
living by our purpose and mission.
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.
We are an innovation driven
company, leveraging new and
emerging technology at each
generation for our customers.
Putting our customers interests at
the heart of the innovation cycle,
our enterprise solution adapts
and evolves as we embrace new
technologies, concepts, and
innovation – and we share that
with our customers. We invest
25+% of revenue per year in R&D
which equates to over $1 billion
invested into our ERP, solutions,
products, and modules.
Ten years ago, cloud computing
revolutionised the world of technology,
and today, artificial intelligence
(AI) is leading the next wave of
transformation. At TechnologyOne,
our innovative teams are at the
forefront of exploring practical AI
applications to deliver value to our
customers. While we’re just beginning
this journey, we’re already harnessing
the power of AI across our solutions,
products, and modules.
For example, DxP Essentials uses AI
to process invoice photos, seamlessly
triggering expense claims directly
to your bank account. Enterprise
Asset Management utilises AI-driven
image recognition to detect road
and footpath defects from garbage
truck images. Meanwhile, DxP Local
Government uses AI to interpret natural
language queries, guiding users to the
right content and enhancing the overall
customer experience.
This is only the start, we’re committed
to continually leveraging AI to refine
our products, empower our customers,
and create connected communities
by harnessing the latest technological
advancements.
A SaaS+ Company
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.
39
Making life simple for our community
Our growth
James Robertson
M A N A G E R F I N A N C I A L A N D
A D M I N I S T R AT I V E S E R V I C E S
Queensland Parliamentary Service
41
Making life simple for our community
Doubling in size every
five years
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 900 customers
on our global SaaS ERP solution, with
54 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, implemented through our
ground-breaking SaaS Plus approach,
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.
Achieving $1 billion ARR
by FY30
TechnologyOne is focused and we
are well on track to surpass our
strategic goal of reaching $500
million+ Annual Recurring Revenue
(ARR) by 2025. It’s because of this
that at our inaugural Investor Day we
announced that our new strategic
goal is now to reach $1billion ARR by
2030. 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
•
Our SaaS Plus offering and
delivering ERP in 30 days
•
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, with
a goal to deliver ERP in 30 days as a
SaaS Plus company.
1.
Driving the growth of
our customer base
As an established company with
over 37 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 in three
large vertical markets, while also
servicing health and community
services, asset and project intensive
industries, and corporates and
financial services with our OneBase
solution. This 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 serving our
communities.
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 and SaaS
Plus has also enabled us to further
penetrate our key vertical markets.
Increasing adoption of our products
Our global SaaS ERP solution
comprises of 19 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, at 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
such as employees, ratepayers, and
students, making the power of ERP
available to your community.
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.
Our growth
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 an opportunity to learn,
innovate, and collaborate. It also
enables them to share ideas, access
knowledge articles, create and
manage cases, influence product
direction, and keep up to date with
industry news.
4.
Our SaaS Plus offering and
delivering ERP in 30 days
We have taken SaaS to the next level
with SaaS Plus. 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 37 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, 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.
With SaaS Plus we’ve completely
reimagined what digital
transformation looks like for
the communities that we
serve. Drastically decreasing
implementation time and improving
time to value.
Our communities are now seeing the
benefits of TechnologyOne solutions
quicker, and through SaaS Plus
we’re able to build true partnerships,
with common goals, common
understanding, and a mutual desire
to drive value as quickly as possible.
With SaaS Plus we’re making the
impossible possible with a goal to
deliver ERP in 30 days.
In FY24 we have shortened our ERP
implementation from 728 days to 180
days, and we’re estimated to reach
our 30 days goal by FY28.
Our SaaS Plus offering combined
with our best-of-breed SaaS ERP
solutions are what differentiates
us in the market and from our
competitors. Through the Power
of One, TechnologyOne is the only
vendor able to own SaaS Plus. We’re
making life simple for our communities
so they can focus on what really
matters, their communities.
5.
Growth in the UK, and beyond
Throughout FY24 the UK has seen
significant growth, and we have seen
increased success in that region over
the last five years.
Our team continues to execute our
value proposition and strategies in
our two industries, Local Government
and Higher Education.
FY24 saw the University of Chester
sign onto become a TechnologyOne
customer with Financials, a SaaS flip
for Timetabling & Scheduling, and
our Student Management solution. In
Local Government, Islington Council,
our first London Borough, have signed
up for our Financials product. These
are more milestone achievements for
our UK offering.
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.
10,000
8,000
6,000
4,000
2,000
0
-2,000
Animals
Compliance
Leases and
Licenses
Miscellaneous
Property
Top Suppliers by Value (Current YTD)
Amount
43
Making life simple for our community
Calling all tribes
1,200+ people. Three days of
action. One future. Together.
Company Kick Off (CKO) is
TechnologyOne’s largest internal
event, bringing our global team
together over three days. The event
is held every couple of years to give
our people an opportunity to immerse
themselves in the path to our future.
In FY24, CKO was held in the city of
our HQ – Brisbane, Australia and was
attended by over 1,200 of our team
members from across Australia, New
Zealand, the UK, Bali and Malaysia.
The event provided a unique
opportunity for our entire global
team to come together and unite as
a business to understand our future
direction, explore the huge possibilities
for delivering innovative solutions for
our customers, and learn more about
how we are delivering the future of
TechnologyOne together.
This milestone event launched our key
initiative of delivering ERP in 30 days
as well as deep dived into our mission
and purpose, core beliefs, SaaS Plus,
departmental strategies, and more.
With these educational sessions
exploring key initiatives and business
leader insights, the three days
were broken up with inspiring guest
speakers, including surfing legend,
Steph Gilmore, wellness coach to the
stars, Ben Crowe, and former Olympic
champion, Duncan Armstrong, about
how to create a winning mindset.
Finally, our team came together at
numerous tribal events to celebrate
each other, our business success,
and what it means to be part of the
TechnologyOne team. These events
included our MARVEL awards, SRA gala
dinner, and a department day.
CKO
Our growth
45
Making life simple for our community
Our
operations
Jade Goddard
C H I E F F I N A N C I A L M A N A G E R
New Zealand Parliamentary Service
47
Making life simple for our community
In FY24, TechnologyOne solidified
our position as a SaaS Plus company,
further differentiating ourselves
in market. Focusing on customer-
centric initiatives, we have broken
new ground and made the impossible
possible.
SaaS+
We launched Solution as a Service
(SaaS Plus) with ambitious goals and
made a firm commitment to engage
and support our community. This
initiative has led to significant market
adoption across our key industries.
Our customers remain our true north,
and their feedback on SaaS Plus
affirms that we are on the right track,
continuously striving to do what’s
best for our customers and their
communities.
SaaS Plus has also enabled us to
streamline internal processes through
the implementation of Tribes. Working
within these cross-functional teams
allows us to achieve our big goals
efficiently. Each Tribe is composed
of team members from various parts
of the business, bringing diverse
skill sets and strengths to quickly
solve our customers’ challenges. This
collaborative approach leverages the
Power of One, enhancing customer
outcomes and accelerating our time
to value.
Growth in the UK
As we focus on the UK market, our
commitment to differentiation remains
a key strategy with SaaS Plus taking
over as our primary delivery model.
The team focused on enhancing
TechnologyOne’s competitive
position in the UK through Project
Lemonade which focused on brand
elevation. Through this work we
have seen significant success in the
higher education sector, with Student
Management and its integration
with the TechnologyOne ERP
ecosystem underscoring our unique
value proposition. This innovation
sets us apart from competitors and
enhances our referenceability within
the region. With our current size and
customer base, we are well-equipped
to deliver sustained growth and
capitalise on emerging opportunities
after years of investing in building our
UK focus.
CKO
At the beginning of FY24 we hosted
our largest internal event to date,
Company Kick Off (CKO). Over three
impactful days, this event brought
together our global team, fostering a
collaborative environment where our
team members immersed themselves
in our vision for the future and aligned
focus with our organisational goals.
During CKO, presentations from all
departments provided insights into
our clear direction and strategic
plan for the next five years. This not
only reinforced our commitment to
transparency but also ensured that
every team member understands
their role in driving our success.
This alignment serves as a crucial
foundation for our upcoming
Showcase events, set to begin in
FY25. These events will build upon
the momentum generated at
CKO, engaging our customers and
demonstrating our commitment to
growth and innovation.
Stuart
MacDonald
Chief Operating Officer
Our operations
FY24 was a transformative year in
the support functions. In a restructure
to support strategic corporate
initiatives, Corporate Services and
Legal joined the Finance, Risk and
Governance teams to create the
Finance and Corporate Services
team. This has enabled alignment
across the teams who support our
business to grow and deliver.
Supporting our people
Our Employee Share Plan, established
in FY23, has enabled approximately
63% of our employees to become
shareholders in TechnologyOne. This
strong take up is an endorsement of
the share plan attractiveness and
the faith that our team has in our
growth trajectory. We aim to establish
a culture of share ownership to
continue to drive alignment between
staff and shareholders in the success
of the business.
Supporting our business
In FY24, the team continued to
drive strong commercial outcomes,
proactively managing our resources
to ensure bottom line benefits.
The finance team have continued
to drive exceptional outcomes in
working capital management and
funds investment, delivering bottom
line benefits.
Showcasing TechnologyOne
to the market
We delivered our company’s first
ever Investor Day in FY24, with
more than 80 attendees travelling
to our Brisbane HQ to hear the
TechnologyOne story. With a mix of
long-standing, new, and potential
investors and analysts in attendance
our team were proud to demonstrate
our software and unpack the
complex operating environment
of our customers. Additionally, we
took the opportunity to lay out our
strategy to reach $1 billion ARR
by FY30. We also stepped out the
SaaS Plus strategy, outlining how
this strategy is an all-of-business
change driven by thousands of one
percent changes across hundreds of
modules on our way to implementing
our ERP in 30 days. This will unlock
faster growth potential and increased
margins. While SaaS Plus is a long-
term strategy, our entire business
is lined up behind it as it delivers a
better outcome for our customers in
addition to significant benefits for
our business.
Cale
Bennett
Chief Financial Officer
49
Making life simple for our community
In FY24, we affirmed our commitment
to our customers, they are at the
centre of our strategy, emphasizing
that our customers are our true north.
By deepening our engagement with
the community, we reinforced that
our products and solutions are not
just important but mission-critical to
our clients’ success.
Strength in Local Government
and Higher Education
Our continued growth in financially
challenged regions serves as
a testament to our effective
support and innovative solutions,
demonstrating our resilience and
the value we bring to those markets.
Significant strides in the Local
Government and Higher Education
sectors highlight our strengths
and expanding influence in these
vital areas.
In Local Government, FY24 saw our
team close over 30 major deals and
achieve a total contract value of
$32.99m for the sector. Over 300
council customers are experiencing
the benefits of our high-quality SaaS
ERP products and solutions.
Our largest new customer was
Maitland Council, totalling $1.68m in
contract value. Other large customers
include Melton Council and Logan
Council, which are now unlocking
the benefits of our OneCouncil and
Property & Rating solutions. With
over $29 million in new business
throughout ANZ in FY24 these Local
Government customers are just a few
examples of councils choosing our
market-leading SaaS ERP to digitally
transform and make life simple for
their communities.
We have continued to see
momentum build in the UK, especially
in the Higher Education sector,
with University of Buckingham and
University of Chester both investing
in our Student Management product
resulting in a combined contract
value of over $1.5 million. Another
large customer that has seen the
benefits of TechnologyOne’s Student
Management product is the Liverpool
Institute of Performing Arts. It is clear
the regionalisation of our Student
Management product has made
an impact on the UK market and
highlighted our unique, industry
focused ERP offering.
SaaS+
The introduction of our SaaS Plus
offering has proven transformative,
streamlining the sales cycle and
enhancing our win rates. This
differentiation positions us uniquely
in the market and underscores our
commitment to innovation.
Our impressive Net Revenue
Retention (NRR) further validates our
referenceability, reflecting the trust
our customers place in our products
and solutions.
Looking ahead, we are excited to
unveil an upcoming brand refresh
that honours our history and provides
a platform for our continued growth.
Stuart
MacDonald
Acting Executive Vice
President - Sales and
Marketing
Our operations
FY24 saw our Research &
Development team make significant
strides in delivering faster time
to value for our customers while
accelerating our investments in
innovation and future-proofing
our offerings. Based on customer
NPS feedback, there has been a
dedicated focus to drive a quality
first mindset resulting in significant
achievements throughout the year.
Innovation
The successful implementation of our
SaaS Plus initiative has been pivotal,
allowing us to embed intelligent
features into our software solutions
through a bold, timeless architecture
designed to support our customers’
digital transformation.
Our two major software releases,
2024A and 2024B, were successfully
delivered throughout FY24, making
history as the fastest adopted
releases by customers. Incorporating
customer-driven features and
improvements and staying true to
our mission of leveraging our team’s
innovation, drive, and determination
to better our community.
Industry collaboration
We are dedicated to co-
innovating with industry experts
and governing bodies, evolving
our value proposition to meet the
dynamic needs of the market. Our
approach leverages deep industry
knowledge and best practices,
ensuring we not only enhance our
solutions but also give back to
the industry through meaningful
collaborations. Accelerated co-
innovation with industry stakeholders
has strengthened our position and
enhanced our focus on driving
business value and efficiency.
In the spirit of partnership with
our customers, we have begun
multiple co-innovation Early Adopter
programs to engage customers and
work with them as we design, build,
and deliver smart innovations.
Quality and performance
As a result of our quality first mindset,
there has been a 70% reduction of
P0, P1, and P2 issues and a reduction
of the age of outstanding customer
cases by 63% in the last twelve
months. Our focused investment
improving our products and solutions
has dramatically reduced the
incoming performance issues.
Our commitment to quality and
performance underpins the
foundational effectiveness of our
technology stack modernisation
efforts. By building resilience into our
solutions, we ensure an exceptional
customer experience.
As we look forward, we remain
steadfast in our commitment to
innovation and industry engagement,
driving continuous improvement and
future innovations that align with our
customers’ goals.
Chandan
Potukuchi
Chief Technology Officer
51
Making life simple for our community
The UK has experienced a
remarkable year, demonstrating
exceptional growth with a 70%
increase in New Annual Recurring
Revenue (NARR).
Our dedicated team has executed
our value propositions and strategies
resulting in significant successes.
As we continue to focus on building
referenceability in the market, we
remain committed to delivering value
and further growth.
Strong growth
The increase in ARR we have
achieved in FY24 has been driven
by the acquisition of 16 new
customers across our key industries,
Local Government and Higher
Education. This growth is a testament
to the effectiveness of our SaaS
ERP solutions, which we deliver
exclusively through our SaaS Plus
model in the UK.
Notably, we celebrated three
significant wins in Student
Management SaaS Plus, securing
contracts with the University of
Buckingham, the Liverpool Institute
of Performing Arts, and the University
of Chester.
In Local Government, several
councils transitioned to become
TechnologyOne customers, unlocking
the full benefits of our SaaS solution.
Across both Local Government and
Higher Education, we successfully
implemented and went live with
28 customers, including partnering
with some of the UK’s largest local
authorities and higher education
institutions.
Brand awareness
Our global team is dedicated to
strengthening TechnologyOne’s
competitive position in the UK
evidenced through our partnerships
on sector focused research projects
which emphasized our commitment
to the UK and to the Higher
Education and Local Government
sectors therein. We also launched
brand awareness and thought-
leadership campaigns in our
key industries: Partnering with FT
Longitude for Local Government to
explore the chasm between council
budgets and resident expectations.
We were also proud to partner with
the Higher Education Policy Institute
(HEPI) on critical research highlighting
the need for students to achieve
an acceptable standard of living in
the UK. These initiatives positioned
us as a valuable, supportive
partner for those institutions and
aimed to establish TechnologyOne
as a leading supplier in market,
differentiating us from competitors,
and supporting future strategic
objectives.
Our efforts have generated
substantial discussion within each
industry and facilitated high-profile
media coverage, reaching over three
billion individuals.
People are our power
I’m pleased to announce that
our team continues to grow and
be welcomed into our UK-based
office. FY24 saw the addition of 25
new UK-based team members. Our
on-site team members have now
grown from 115 to 140, demonstrating
our commitment to the UK, Higher
Education, and Local Government
markets.
Leo
Hanna
Executive Vice President –
United Kingdom
Our operations
FY24 saw the Customer Experience
team continue to uphold our core
belief in deep market focus and
commitment, which remains a key
differentiator. Throughout the year,
we concentrated on enhancing
customer satisfaction and driving
growth in both people and skills,
to provide a Compelling Customer
Experience in every interaction.
Integrated methodology
Our SaaS Plus methodology has
been refined to accelerate time
to value, minimise risk, and solidify
positive outcomes for our customers.
This innovative approach has led
to a significant uptake of SaaS
Plus offerings, with 88 customers
benefiting from its advantages.
The success of SaaS Plus is now
mainstream, as evidenced by
Metropolitan Memorial Parks going
live in a remarkable fourteen weeks.
This is clear evidence we are
progressing well towards our goal of
ERP in 30 days goal.
Aligning sales to delivery
In the UK market, our efforts have
resulted in over a 150% increase in
go-lives, increasing from 24 to 37
this year, highlighting the strong
alignment that exists between our
sales and delivery teams.
The CiA Live initiative had a slow start
in terms of delivery; however, with
focused course correction we now
have more than 90 customers either
on, or finished, their CiA journey and
realising the full benefits of SaaS.
We also acknowledged the need for
improved support services as told
to us by our customers through our
annual Net Promotor Score (NPS)
survey. In response, we dedicated
significant efforts to clear the case
backlog and drive down the average
case age, resulting in a reduction
of case age by more than half. This
initiative has been instrumental in
providing a more responsive service
to our customers and enabling them
to focus on improving life for their
communities.
Growth
Throughout the year the Customer
Experience team expanded its
workforce by 150% globally. This
expansion was driven by significant
demand across SaaS Plus, CiA Live,
and AMS, against which we grew
rapidly to ensure responsiveness to
customer requests.
As highlighted, AMS has grown
significantly across our ERP
customers, contributing significantly
to our growth story. This year, we
launched over 55 new AMS programs,
and customer feedback has driven us
to tailor our AMS program, adjusting
our operating model, and enabling a
more flexible use of AMS hours.
Looking ahead, we anticipate that
this growth trend will continue and
remain a primary focus into FY25,
as the team remains committed to
delivering exceptional service and
meeting the evolving needs of our
customers.
David
Cope
Executive Vice President –
Customer Experience
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Making life simple for our community
In FY24, there was a focus on aligning
our teams and building a stronger
understanding of what makes the
work we do at TechnologyOne
unique. To support purposeful
delivery, new frameworks and
initiatives were introduced,
setting the stage for lasting
growth and excellence.
Empowering our people
A key highlight was the launch of
the Architectural Curriculum within
our Research & Development team.
Built on the 70/20/10 learning model,
it weaves together formal training,
hands-on projects, and collaborative
learning to cultivate technical depth
and design expertise. Feedback
and results have shown promising
outcomes, reinforcing how these
enhanced skills support individual
growth and foster a culture of
continuous learning.
Blending art and science
through playbooks
To streamline and enhance execution
across all organisational streams,
we began development of a
comprehensive suite of playbooks.
Aimed at integrating the creative,
structured, and methodical aspects
of our work. These playbooks provide
a clear vision and guide consistent,
high-quality execution, empowering
new and existing team members
alike to contribute confidently
and with clarity.
Building a new generation
of leaders
Our commitment to leadership
development reached new heights
with our annual Leadership Summit.
In July, approximately 70 leaders
from the class of 2024 attended their
final Leadership Summit, marking
the end of their academy journey.
Simultaneously, the FY25 cohort
embarked on their academy year,
bringing another 70 leaders into our
leadership development fold. Looking
forward, the Leadership Summit
series will not only cater to all levels
of leadership but will also include
key business influencers, fostering
a cohesive leadership community
across TechnologyOne.
RAP endorsed
We launched our first Reconciliation
Action Plan reflecting our dedication
to fostering stronger relationships
between Aboriginal and Torres Strait
Islander people and non-Indigenous
Australians. As a trusted partner to
the Federal Government, this step
enhances our commitment to helping
customers and communities achieve
positive outcomes.
Reflecting on FY24, we see these
efforts strengthening our shared
understanding of what we do and
how we do it. Looking forward,
our commitment to alignment
and purpose-driven practices will
continue to position TechnologyOne
for achieving its strategic ambitions
and maintaining strong, upward
momentum.
Danielle
Windle
Executive Vice President –
People & Culture
Our operations
How we get you
to ERP in 30 Days
Tech is the answer
to solving complex
challenges.
With SaaS Plus, we’ve
completely reimagined what
digital transformation looks like
for the communities that we
serve. Drastically decreasing
implementation time and
improving time to value.
Our communities are now seeing
the benefits of TechnologyOne
solutions quicker and through
SaaS Plus we’re able to build true
partnerships, with common goals,
common understanding, and a
mutual desire to drive value as
quickly as possible.
With SaaS Plus we’re making
the impossible possible.
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Making life simple for our community
Culture
58
Foundation
66
Sustainability
performance
at a glance
64
Our
people
57
Making life simple for our community
Culture,
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.
In recent years, we have focused our
operating model and business to be
a true SaaS business, and pivot away
from an on-premise operating model.
Now we are transforming into a SaaS
Plus business to continue to make
life simple for our communities.
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 6,552
total 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 380
new 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.
Our people
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.
Collaborative 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. 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
To continue to double in size every
five years, we continue to invest in
our leaders through our Leadership
Summit. FY24 saw our third Leadership
Summit take place with cohort
two graduating and cohort three
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 continued
our OneTalks, an event held on
the rooftop of our HQ building and
streamed live. OneTalks 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. 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.
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Making life simple for our community
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
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
•
Emerging Leader of the Year
•
Rookie of the Year
•
TechnologyOne Superheroes
•
Adrian Di Marco Excellence
Award
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 are highly
regarded by our peers, competitors,
and industry bodies alike. We
received a total of 1,091 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
newest graduates work across
TechnologyOne with the company’s
most influential and skilled leaders,
who provide them with valuable
learning opportunities and
experience.
Industry 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.
Our people
Equal 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.
Recruitment and promotion within
TechnologyOne are based on
the relevant skills, experience,
qualifications, aspirations, potential
and aptitude of applicants.
Women make up 48% 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.
Wellbeing 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, we continued to see strong
engagement with our 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 are 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 them seamlessly
make exercise part of their day-to-
day life.
Sustainability
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.
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).
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Making life simple for our community
Responsible business
•
Maintained a comprehensive
corporate governance
framework based on risk
management, compliance,
and assurance controls
•
Invested over $128m in R&D for
FY24, which is approximately
25 per cent of revenue.
•
Achieved FY24 record revenues,
profit and SaaS ARR
Customer
•
Maintained 99 per cent customer
retention and 99.9 per cent
SaaS uptime
•
Released two software upgrades
– 2024A & 2024B – to deliver
enhancements designed to
simplify the way our customers
work
•
Maintained SaaS certifications
and accreditations to provide
the highest levels of data
protection
Community
•
$1,034,497 of profit contributed
to the TechnologyOne
Foundation to give back
to our communities
•
8,824 hours volunteered
to charity and community
organisations
•
1,000 Solar Buddy lights
assembled for disadvantaged
children in Fiji, Papua New
Guinea, Sri Lanka, and
Cambodia
•
Completed over 180 vendor
screen assessments for new
and existing suppliers
FY24
Sustainability
performance
at a glance
Alex Prior
B U S I N E S S I M P R O V E M E N T
PA R T N E R
The Barossa Council
Our people
Our people
•
Employee engagement score
continued to lay the solid
foundation as we move toward
our FY26 target of +50
•
Increased women in senior roles
to 44 per cent
•
No fatalities or material
workplace injuries reported
during the year
Environment
•
Maintained Climate Active
carbon neutral certification for
our global operations
•
Decreased our global Scope 1
and 2 emissions by 62.4 per cent
against FY23
•
Started working with a
Procurement Network to identify,
promote, and engage with
Scope 3 suppliers that actively
promote and undertake GHG
reductions initiative
For more information see our
Sustainability Report on our website
or scan the QR code.
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Making life simple for our community
The 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.
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.
More than $2m global pledge.
Our goal is to lift
500,000 children
and their families
out of poverty
Our people
$1,034,497
42+
$1,956,947
$48, 072
8,824
$507,380
1,000
total donated
to charities
directly impacted by
TechnologyOne team
member contributions
worth of product
discounts to NFPs
Received prestigious
‘Others’ Award from
The Salvation Army
raised by team
members (employee
generated)
volunteer hours
equating to
Australian Business
Award for Community
Contribution
Solar Buddies built
The
year in
summary
65
Making life simple for our community
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, addiction recovery, emergency relief and
financial counselling.
The School of St 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.
Our key
charity
partners
Our people
How we’re making
a difference over time
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.
102,462 children and
families in partnership with
Opportunity International
Australia
1,000 lights in partnership
with Solar Buddy
Solar Buddy lights have
contributed to 730,000
education hours for 1,000
families reducing carbon
footprint by 1,280 tonnes
65 PowerWell Home Solar
Units built from recycled
materials
740 kilograms of electronic
waste diverted from landfill in
partnership with Substation33
and PowerWells
Funded a Certificate II in Self
Awareness and Development
for Year 11 and 12 students in
partnership with the Salvation
Army
13,000 children screened
and provided spectacles
through the School Eye Health
Program in partnership with
The Fred Hollows Foundation
300 students have been
equipped to ensure they have
an equal chance at school
in partnership with St James
Bursary Fund
67
Making life simple for our community
Financial
report
Contents
Directors’ Report
70
Independent Auditor's Declaration
82
Remuneration Report
83
Financial Statements
125
Consolidated income statement
125
Consolidated statement of comprehensive income
125
Consolidated statement of financial position
126
Consolidated statement of changes in equity
127
Consolidated statement of cash flows
128
Notes to the consolidated financial statements
129
Consolidated entity disclosure statement
166
Directors' Declaration
167
Independent Auditor's Report
168
Shareholder information
174
Corporate directory - Technology One Limited
175
Trent Smyth
D I R E C T O R
Department of Prime Minister and Cabinet
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Making life simple for our community
Financial report
Directors’ 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 2024.
The following persons were Directors of Technology One Limited (TechnologyOne)
during the financial year and up to the date of this report:
Experience and expertise
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 Chairman of Cargroup
Limited 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.
Special responsibilities
Board Chair
Interests in shares and options
as at 30 September 2024
39,779 ordinary shares held in
Technology One Limited.
Pat
O’Sullivan
CA, MAICD
Appointed 2 March 2021.
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Making life simple for our community
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 focussed
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
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
as at 30 September 2024
20,000 ordinary shares in Technology
One Limited held beneficially through the
Anstey Super Fund.
Richard
Anstey
FAICD
Appointed 2 December 2005.
Edward
Chung
Appointed 15 August 2023.
Experience and expertise
Mr Chung 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 & CEO
Interests in shares and options
as at 30 September 2024
700,068 ordinary shares and 1,412,976
options held in Technology One Limited.
Financial report
Dr Jane
Andrews
GAICD, PhD
Appointed 22 February 2016.
Experience and expertise
Dr Andrews joined the Board in 2016,
bringing more than 15 years leadership
experience in research and innovation-
based organisations.
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.
Special responsibilities
Chair of the Remuneration Committee,
member of the Audit and Risk
Committee and the Nomination and
Governance Committee.
Interests in shares and options
as at 30 September 2024
30,600 ordinary shares held in
Technology One Limited.
Directors’ Report
Sharon
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
as at 30 September 2024
18,280 ordinary shares in Technology
One Limited.
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Making life simple for our community
Peter
Ball
B Bus, CA, MAICD
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 several industries
including tourism and leisure, gaming and
wagering, arts and sports, and state and
local governments.
Mr Ball is also actively involved in the
community/not for profit sector having
been a Director of Alzheimer's Queensland
for over 15 years.
Special responsibilities
Chair of the Audit & Risk Committee and
member of the Remuneration Committee.
Interests in shares and options
as at 30 September 2024
21,900 ordinary shares held in Technology
One Limited held beneficially through the
Noosa Hill Super Fund.
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
as at 30 September 2024
27,533 ordinary shares held in Technology
One Limited held beneficially through
Clifro Pty Ltd ATF Cliffro Trust.
Clifford
Rosenberg
B Bus Sc (Hons), M Sc (Hons)
Appointed 27 February 2019.
Financial report
Financial report
Experience and expertise
Mr Robson is an accomplished senior
executive with nearly 30 years' experience
in the technology sector, driving growth
and innovation across global markets.
He is currently the CEO of Australian-grown
accounting software company MYOB.
Paul was previously the president of
Benchling, a San Francisco based cloud
platform for biotechnology research.
Prior to that role he spent 10 years
at Adobe, running the company’s
international business while in London,
spearheading the global pilot for Adobe’s
move to the Cloud. Paul also spent a
decade at Hewlett-Packard, rising to
Vice President and General Manager,
HP Networking, Asia Pacific and Japan.
Mr Robson has held multiple board
positions at the likes of techUK, the
membership body for the UK tech industry;
Vamp, an influencer marketing platform;
ADMA, the Australian marketing association
and Tresillian Family Care Centres.
A member of the Australian Institute of
Company Directors, Mr Robson holds
a Bachelor of Commerce and has
completed a number of courses at
Harvard Business School and INSEAD. He is
also an Advisory Councilor on the National
Board of the Australian Industry Group,
a peak industry association representing
businesses in a broad range of sectors
including manufacturing, construction,
transport, defence, ICT and labour hire.
Interests in shares and options
as at 30 September 2024
Nil ordinary shares in Technology One
Limited. As a new Director, Mr Robson has
36 months from his appointment to satisfy
the holding requirements.
Paul
Robson
GAICD
Appointed 1 July 2024.
Experience and expertise
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.
Mr Mactaggart retired from his role at
TechnologyOne on 21 February 2024.
John
Mactaggart
FAICD
Appointed 8 December 1999. Retired on 21 February 2024.
Directors’ Report
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Making life simple for our community
Company 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 2024, and the numbers of meetings attended by
each Director were:
Full
meetings
of directors
(Board)
Audit
and Risk
Committee
Nomination &
Governance
Committee
Remuneration
Committee
P O’Sullivan
12
-
-
-
E Chung
12
-
-
-
R Anstey
12
-
-
-
J Andrews
12
4
3
3
S Doyle
12
4
3
-
C Rosenberg
12
-
3
3
P Ball
12
4
-
3
P Robson1
4(4)
-
-
-
J Mactaggart2
5(5)
-
-
-
1 P Robson was appointed to the board 1 July 2024.
2 J Mactaggart retired on 21 February 2024.
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 Corporate Performance Management
•
Technology One Enterprise Content Management
•
Technology One Financials
•
Technology One Performance Planning
•
Technology One Business Analytics
•
Technology One Enterprise Budgeting
•
Technology One Property and Rating
•
Technology One Human Resource and Payroll
•
Technology One Supply Chain Management
•
Technology One Student Management
•
Technology One Enterprise Asset Management
•
Technology One Spatial
•
Technology One Timetabling and Scheduling
•
Technology One DxP Local Government
•
Technology One Enterprise Cash Receipting
•
Technology One App Builder
•
Technology One DxP Student
•
Technology One DxP Essentials
•
Technology One Curriculum
Financial report
Dividends
Dividends paid to members during the financial year were as follows:
Ordinary shares
2024
($’000)
2023
($’000)
Final dividend for the year ended 30 September
2023 of 11.9 Cents (2022: 10.82 Cents) per
fully paid share paid in December 2023
(2022: December 2022)
60% franked (2022: 60%) based on tax paid at 30%
38,588
35,119
Special dividend for the year ended 30 September
2023 of 3 Cents (2022: 2 Cents) per fully paid share
paid in December 2023 (2022: December 2022)
60% franked (2022: 60%) based on tax paid at 30%
9,728
6,491
Interim dividend for the year ended 30 September
2024 of 5.08 Cents (2023: 4.62 Cents) per fully paid
share paid in June 2024 (2023: June 2023)
65% franked (2023: 60%) based on tax paid at 30%
16,530
14,995
Total dividends paid
64,846
56,605
Review of operations
On behalf of TechnologyOne we are pleased to announce
our 15th consecutive year of record profit, record revenues,
and record SaaS fees. Our global SaaS ERP solution and our
game-changing SaaS+ offering 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
over 25 years is due to our clear vision, strategy, culture and our
ongoing investment in R&D, which was validated in March 2023
as we entered the ASX 100 index.
Highlights for the Year
Profit before tax, up 18% – Beating guidance set in May 2024 of
12%-16% profit growth.
Total Annual Recurring Revenue (ARR)1 up 20% – Driven by the
significant value proposition of our global SaaS ERP solution and
our game-changing SaaS+ offering.
We are 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.
UK sales ARR up 70% – Our long-term investment in the UK
continues to build momentum.
Net Revenue Retention (NRR) of 117%, above the long-term target
of 115% – Existing customers continue to expand their use of our
global SaaS ERP solution to streamline their operations.
A new long-term target of $1b+ ARR by FY30 - With $500m ARR
firmly in sight (18 months earlier than the original target date),
we have now set our ambitions higher. During our first Investor
Day in July 2024 we announced a new long-term target of $1b+
ARR by FY30.
Building the future, enabling us to continue to double in size every
five years – With strong results and a strong sales pipeline, we
upheld our ambitious R&D investments to enable us to continue
to double in size every five years. These include additional
investments in the UK, new products and modules, including DxP,
App Builder, and SaaS+.
Strong balance sheet and strong cashflow generation greater
than 100% of NPAT – We delivered strong cashflow generation
to NPAT ratio of greater than 100%. With significant cash and
investment holdings of $278.7 million and no debt, our balance
sheet retains flexibility and strength for further inorganic growth in
the future.
Acquisition of CourseLoop - Post the period end, we completed
the acquisition of CourseLoop. A world-leader in curriculum
management, this acquisition complements our suite and
provides us with great IP. With the addition of CourseLoop’s
Curriculum Management, TechnologyOne’s OneEducation solution
has become the world’s first SaaS platform to encompass the
entire student lifecycle – from course design to graduation – into
a single unified ERP solution.
These points are discussed later in more detail.
Total Annual Recurring Revenue (ARR) up 20%
Adoption of the TechnologyOne global SaaS ERP solution and
our SaaS+ offering exceeded our expectations, with customer
adoption driving total ARR to $470.2 million, up 20%.
All of our key verticals performed strongly throughout the year,
with our Government vertical growing 41%, up $22m and Local
Government growing 22%, up $32m.
In Local Government, our team closed over 30 significant deals in
FY24. TechnologyOne won a project to transform Penrith Council’s
core ERP system. Penrith City Council manages around 80,000
rateable properties, is one of Sydney metropolitan’s largest Local
Government areas and is considered one of the city’s fastest
growing regions. As a long-time TechnologyOne customer using
just some of the OneCouncil functionality, the Council came to
market for a best-practice total ERP solution to take them into
the 2030s. Their decision to choose TechnologyOne reflects our
reputation for delivering robust, future-focused solutions that
specifically meet the needs of growing and evolving communities.
1 ARR is not an IFRS measure and is unaudited; it represents future contracted annual revenue at year-end.
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Making life simple for our community
We are the world’s first SaaS+ ERP company
Having successfully completed our transition to become a 100%
SaaS company, we have pivoted to our next major innovation,
becoming the world’s first SaaS+ company.
SaaS+ is a game changer in the ERP industry. It is the next logical
evolution of SaaS where TechnologyOne delivers the entire
outcome faster, with minimal risk and in an annual fee to our
customers. SaaS+ delivers 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 37 years and our highly skilled in-
house consulting team.
A traditional implementation of our multinational competitor
product undertaken by third-party consulting firms or the big four
accounting firms, typically takes thousands of days. During FY24
TechnologyOne set an ambitious goal of delivering ERP in 30
days in the next five years. This goal will totally transform our
industry as we deliver what our customers truly need – a solution
to streamline their business, not years of traditional, complex and
risky consulting implementations. Our OneBase solution presently
takes 160 days to implement and we are hyper-focused on
reducing this to 30 days.
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.
UK sales ARR up 70%
We have seen our UK business continue its growth trajectory,
with UK sales ARR up 70% to $8.7m and total UK ARR up 31%
to $34.7 million. We delivered a profit of $2.9 million, down
from a profit of $3.7 million last year; this was expected as we
carefully manage our transition to SaaS+, and we have also
committed additional investment to ensure future growth. We see
significant opportunities in the coming years in this market, which
considerably exceeds the size of the APAC market.
We continue to see momentum build in the UK, especially in the
Higher Education sector, with the University of Buckingham and
the University of Chester both investing in our solutions in FY24.
The University of Chester is a well-established institution with a
history dating back to 1839, serving over 15,000 students today.
They faced challenges with legacy vendors for Financials and
Student Management that offered no clear path to SaaS and
needed more investment in improving their products. They saw
TechnologyOne’s true SaaS solution with full ERP capabilities,
defence-in-depth security and more than $125 million R&D
investment as the clear path to modernise the university.
Furthermore, with our SaaS+ design, the implementation risk to the
university has been significantly diminished – a critical factor in
the University of Chester choosing to partner with us.
Our ERP offering along with the breadth and depth of
functionality that we bring to Local Government and Higher
Education markets are unique in the UK and our pipeline is
strongly growing. We continue to invest in products, sales,
marketing and all other functionality in the UK to further
accelerate our growth.
Net Revenue Retention (NRR) of 117%, beating long-term target
of 115%
In FY24, we delivered Net Revenue Retention of 117%, which is
industry-leading in the ERP market and above our long-term
target of 115%. This gives us confidence that we will continue to
double in size every five years.
It’s clear that our products and solutions are resonating with the
market. Customers continue to take up more TechnologyOne
products and modules as they embrace our enterprise vision and
the consequent substantial efficiencies and productivity lift.
We focus on signing a new customer with products such as
Financials, Property and Rating, or Student Management and
then expanding 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 our team's available whitespace
and runway to sell additional value to our existing customers.
Our SaaS customers continue to take up products and modules
faster 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 FY24.
A new long-term target of $1b+ ARR by FY30
The revenue quality from our latest generation global SaaS ERP
business is exceptionally high, given its recurring contractual
nature, combined with our long-term, 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 continuing solid growth in
the new year.
Today, our total ARR is $470.2 million, up 20%. During the year we
upgraded our medium-term target for the second time to now
surpass $500 million ARR by H1 FY25 (previously, “we will surpass
$500 million ARR by FY25” and before that “we will surpass $500
million ARR by FY26”).
With this target firmly in sight, we have now set our ambitions
higher and, during our first Investor Day in July 2024, we
announced a new long-term target of $1b+ ARR by FY30. Our
significant investments for growth including expanded products
and modules, acquisitions, the UK, new products such as DxP and
App Builder and SaaS+ underpin this.
Financial report
Building the future, enabling us to continue to double in size
every 5 years
TechnologyOne invested $128 million in R&D this year, up 14% on
the previous corresponding period, an investment that underpins
our future platforms for growth.
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+, App Builder and Digital Experience Platform (DxP)
for Local Government and Higher Education. Our sixteenth
product, DxP Local Government, was released for general
adoption and extends our ERP from traditional back-office
users to residents.
These investments in R&D and SaaS+ build our future platforms
for growth and enable our ability to continue to double in size
every five years. As always, we manage this significant investment
within our total cost base, continuing to balance strong profit
growth with investment for the future.
Acquisition of CourseLoop
Post the period end, we acquired CourseLoop, a company
servicing the higher education sector. This acquisition forms part
of our strategic focus to deliver the deepest functionality for the
Higher Education market.
With the addition of CourseLoop’s Curriculum Management,
TechnologyOne OneEducation has become the world’s first SaaS
platform to encompass the entire student lifecycle – from course
design to graduation – into a single unified ERP solution.
Integrating a Curriculum Management capability with
TechnologyOne’s market-leading Student Management,
Timetabling and Scheduling, Human Resource and Payroll,
Enterprise Asset Management, and Financials capabilities will
provide, for the first time, full visibility across the entire
academic cycle.
Curriculum Management will provide Higher Education institutions
with data-driven insights via a single source of truth to create
courses that meet market demands, what students want to study,
are financially sustainable, and deliver student success
and institutional differentiation.
We are excited about the opportunities this will bring to both our
UK and Australian customers in the coming years. The impact
on our FY25 Group profit will be insignificant and we expect the
acquisition to be EPS accretive in FY26.
Profit Before Tax margin improved to 30%
We generated a Profit Before Tax margin of 30%, compared to
29% in the previous corresponding period. This return to growth
in margin includes a negative impact from our careful transition
to SaaS+ of $3.0m. Had we not taken this approach, our profit
before tax margin would have been approximately 1% better.
This shift from traditional new project consulting revenue to
SaaS+ revenue will have similarities to our successfully completed
transition from legacy license fees to SaaS revenue. This strategic
move over time removes lower quality one-off traditional
consulting revenue and replaces it with high-quality, recurring
revenue. A small headwind to our margin growth in the short-term
will enable a significant tailwind in the long-term on profit before
tax margin.
Notwithstanding our strategic shift to SaaS+ and the small
headwind to our margin growth in the short-term, 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 continue to succeed because of our consistent strategy,
mission, purpose, core beliefs, values, leadership philosophies
and Compelling Customer Experience. Post completion of our
24-month refresh of the TechnologyOne Way and Culture Book,
which contains a collection of stories that explain to new starters
and remind long-timers what makes TechnologyOne special
and how we make the impossible possible; we commenced the
creation of Playbooks by department which codified the art and
science of each our key disciplines including People Leadership,
Sales, Consulting and Research and Development.
During the year, we promoted more than 15 per cent of our
people or 220 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 48%
of senior roles against an industry average of 25%. Our overall
representation of women across all roles at TechnologyOne is
now 39%.
In the second year of what we believe to be Australia’s best
Employee Share Plan, which provides one free share for every two
shares purchased by our employees, 55% of our current team
members have become owners of TechnologyOne to share in the
growth of our great company.
To continue to double in size every five years, we invest heavily
in our leaders through our Leadership Summit. This year, 111 of
our leaders attended the Summits which supported their growth,
taught them the TechnologyOne Way and equipped them to
lead our teams to make the impossible possible. The first cohort
graduated in FY23, a second cohort graduating this year and a
third started in July 2024.
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Making life simple for our community
Strong balance sheet and strong cashflow generation greater
than 100% of NPAT
TechnologyOne continues to maintain a strong balance
sheet with net assets of $379.3 million, up 24% and cash and
investments of $278.7 million, up 25%. Cash Flow Generation (CFG)
was once again strong at $119.0 million for the full year, versus a
Net Profit After Tax of $118.0 million, a CFG to NPAT ratio of 101%.
This provides us with significant flexibility and strength for future
inorganic growth. High levels of recurring revenue, strong cashflow
generation and a strong new business pipeline provide us with
confidence in the future. Consequently, we took time to consider
our capital management position in FY24. As such, we have taken
steps to implement the following actions.
1.
Dividend Policy Update: The dividend policy has been
revised from a growth target of 8-10% to a payout ratio of
55-65%. This change allows dividend growth to align more
closely with net profit after tax growth, whilst balancing
stability, rewarding shareholders and maintaining capacity
to invest for growth.
2.
Equity Management Policy: A new policy has been
established to purchase staff-related equity needs on
market instead of issuing new shares. This measure aims to
reduce dilution and manage the capital base effectively.
3.
Inorganic growth: The Acquisition of CourseLoop. This is
an important bolt-on acquisition for our Higher Education
solution which makes our offering deeper and more unique
than any other education software provider in the world.
We emphasise our ongoing commitment to capital management
initiatives, reflecting a prudent yet strategic approach to
investments for growth while maintaining discipline in execution.
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
our final FY24 dividend of 17.37 cents per share, a payout ratio
of 62%.
For the full year, our dividend has increased to 22.45 cents per
share, up 15% on the prior year consistent with our Net Profit After
Tax growth of 15%.
Executive remuneration
TechnologyOne remains focused on delivering strong growth and
our current remuneration structure positions us well to continue
to achieve this – 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 FY24. When many businesses have struggled to deliver
in uncertain economic and geopolitical times, TechnologyOne
has delivered exceptional growth – Total ARR growth of 20%, Net
Profit Before Tax growth of 18% and upgraded our medium-term
guidance a second time to surpass $500 million ARR by H1 FY25.
Our three-year rolling TSR is 115% and annual TSR is 55%. 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 third year benchmarking and reporting under the
recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD). We have made a significant reduction in our
Scope 1 and Scope 2 carbon footprint in FY24 by switching to
purchasing renewable energy for all locations where it is available.
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 who are 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 sees us donate
1% profit, 1% product and 1% time every year. This represents
a commitment of more than $2 million each year. The
TechnologyOne Foundation will keep inspiring and defining the
core values driving our company and team forward.
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. This year we welcomed
Mr Paul Robson to our Board. Paul is an accomplished senior
executive with nearly 30 years of experience in the technology
sector, driving growth and innovation across global markets.
He is currently the CEO of the Australian-grown accounting
software company MYOB.
We would like to recognise John MacTaggart, who, after 37 years
of service, as a non-executive director, retired from the company
on 21 February 2024. As a former customer of Adrian’s, John and
his father were the first investors in TechnologyOne before the
emergence of VC funding in Australia. They believed in Adrian and
TechnologyOne and have supported our strategy, which includes
our ambitious and significant R&D agenda, and four generations
of our ERP, the most recent being our shift to SaaS. We wish him
well in his future endeavours.
We also note that Mr Rick Anstey will retire in February 2025
following the AGM after 19 years of service to TechnologyOne.
Please refer to our TechnologyOne website for our full
Sustainability Report and Corporate Governance Statement:
https://www.technology1.com/company/investors/corporate-
governance
Financial report
Matters subsequent
to the end of the financial year
On 1 November 2024, the Group acquired 100% of the issued shares
and voting rights of CourseLoop Pty Ltd for $60m in cash and
options. This acquisition forms part of the Group's strategic focus
to deliver the deepest functionality for Higher Education. Due to
the proximity of the acquisition date to the release of the annual
report, the Group has yet to finalise the Purchase Price Allocation for
accounting and therefore this has not been disclosed.
On 18 November 2024, the Directors of Technology One Limited
determined a final dividend on ordinary shares in respect of
the 2024 financial year. The total amount of the dividend is
$56,639,448 and is 65% franked.
No other matter or circumstance has occurred subsequent to
period end that has significantly affected or may significantly
affect, the operations of the Company, the results of those
operations or the state of affairs of the Company or economic
entity in subsequent financial years.
Indemnification and Insurance
of Officers
Insurance and indemnity arrangements concerning officers of the
Company were renewed or continued during the year ended
30 September 2024.
An indemnity agreement is in place between TechnologyOne and
each of the Directors of the Company named earlier in this report
and with each full-time Executive officer and secretary of the
Company. Under the agreement, the Company has indemnified
those officers against any claim or for any expenses or costs that
may arise due to work performed in their respective capacities.
TechnologyOne paid an insurance premium in respect of a contract
insuring each of the Directors of the Company named earlier in
this report and each full-time Executive officer and secretary of
the Company, against all liabilities and expenses arising as a result
of work performed in their respective capacities, to the extent
permitted by law.
Non‑audit services
Non-audit services provided by the Company’s auditor, Ernst
& Young, in the current financial period and prior financial year
included taxation advice and other advisory services. The
Directors are satisfied that the provision of non-audit services
is compatible with the general standard of independence for
auditors imposed by the Corporations Act.
During the year, the following fees were paid or payable for non-
audit services provided by the auditor of the Company and its
related practices:
2024
($)
2023
($)
Ernst and Young:
Taxation and other advisory services
103,428
948,484
Total remuneration
103,428
948,484
Non-audit services include $103,428 (2023: $301,734) in relation to
taxation advice.
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 82.
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.
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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.
Through 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 strong ambitious 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 four phases:
Phase 1: Learning (understand how our business
impacts emissions)
Phase 2: Measuring (collect and analyse our historical key
emission data)
Phase 3: Target Setting (utilise historical emissions data to
set targets)
Phase 4: Reduction (manage & minimise to reduce energy
consumption and associated carbon emissions
where practicable)
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 FY24 amounted to
13,916 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, in FY23 we set reduction
targets to reduce our Scope 1 and 2 global emissions by 80 per
cent by 2023 and 100 per cent by 2030 from a FY22 baseline.
In FY24, we have reduced Sope 1 & 2 emissions by 69% from the
FY22 baseline.
Refer to our FY24 Sustainability Report for further TCFD
related information.
Share options
Unissued shares
As at the date of this report, there were 5,293,360 unissued
ordinary shares under options (4,947,921 at the reporting date).
Refer to note 31 for further details of the options outstanding.
There were 170,648 unissued ordinary shares under performance
rights (135,293 at the reporting date).
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 1,193,476 fully paid ordinary shares in
Technology One Limited at a weighted average exercise price of
$6.57. Refer to note 31 for further details of the options exercised
during the year. 46,509 fully paid ordinary shares in Technology
One limited were issued for performance rights in FY24.
Corporate governance statement
The most recent Corporate Governance Statement can be found
on page 107.
This report is made in accordance with a resolution of Directors.
Pat O’Sullivan
Chair
Brisbane
18 November 2024
Financial report
Independent Auditor's Declaration
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
Auditor’s Independence Declaration to the Directors of Technology
One Limited
As lead auditor for the audit of the financial report of Technology One Limited for the financial year
ended 30 September 2024, I declare to the best of my knowledge and belief, there have been:
a.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b.
No contraventions of any applicable code of professional conduct in relation to the audit; and
c.
No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Technology One Limited and the entities it controlled during the
financial year.
Ernst & Young
John Robinson
Partner
18 November 2024
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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 2024.
The Committee's primary objective is to align the rewards of Executive Key Management Personnel (KMP) with shareholder interests and
the achievement of our business strategy. Additionally, the Committee aims to attract and retain exceptional Executives, Directors, and
Employees who collectively ensure long-term profitable growth and sustainable shareholder returns.
We are one of only a few Enterprise Resource Planning (ERP) vendors globally. Our unique approach sees us focused on six vertical
markets with the deepest functionality for two of those markets, delivered through our 16 products and over 500 modules. Specifically,
we provide mission-critical operational systems for local government and higher education. We have rewritten our rich ERP four times
over the last 37 years, taking advantage of the latest technological shifts for our customers – relational databases, 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. It is only through the Power of One and our deep industry expertise that we can execute on our
innovative SaaS+ strategy.
Our leaders' execution of our consistent strategy has been key to our strong growth. We constantly adapt and evolve to changes in
technology, the market, and customer feedback while remaining focused on delivering for our verticals.
Since listing on the ASX in 1999, TechnologyOne has delivered an annual compound Total Shareholder Return (TSR) of 9.9%, almost
twice that of the ASX 200. The growth has been delivered via execution of our strategy which aims to double our ARR every five years.
Pleasingly, we are on track to deliver our ambitious goal of $500m Annual Recurring Revenue (ARR) by H1 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. When appropriate, we will use benchmarking to ensure we remain competitive and can attract and retain talented executives
with the specialised skills and expertise required.
This Report describes the linkage between our strategic initiatives, remuneration principles, and remuneration framework and how these
drive shareholder returns.
Incentive outcomes and alignment to Company performance
Company performance was strong with exceptional results delivered in FY24 across key metrics:
•
Net profit before tax growth of 18%.
•
Total ARR growth of 20%.
•
UK ARR up 31% at $34.7m.
There was no change to the continuing Executive KMP remuneration framework in FY24. Typically, Fixed Remuneration moves at not more
than inflation, unless benchmarking indicates a change is required. In FY24, Fixed remuneration comprised no more than 24% of Executive
KMP remuneration. Actual short‑term incentive and deferred STI increased consistent with Executive Net Profit Before Tax (NPBT)1.
In FY24 an independent benchmarking exercise determined Mr Chung's and Mr MacDonald’s total remuneration was well below the 50%
percentile of equivalent role remuneration at comparable listed organisations that are competitors for talent. As a result of this exercise:
•
Mr Chung’s total remuneration package was increased by $1,015,393, or 44%. Of this increase, 30% ($308,688) was taken as fixed
remuneration, and 70% ($706,708) was taken as LTI, taking his total remuneration to approximately the 50th percentile of benchmarked
companies.
•
Mr Chung's new Fixed Remuneration remains low, at the 25th percentile of the benchmarked companies.
•
Mr MacDonald’s total remuneration package was increased by $300,000, or 18%. Of this increase, 100% ($300,000) was taken as LTI.
•
There were no changes to the STI components of Executive remuneration.
1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STI is deducted.
(Unaudited)
Remuneration Report
Financial report
Remuneration Report
Remuneration Report
Continuing Executive KMP remuneration continued to be aligned with shareholder value creation in FY24:
•
Total continuing Executive KMP remuneration, excluding one-off LTI and STIs, grew by 25% between 2023 and 2024. This was higher than
in previous years due to the benchmarking exercise. Over the last 5 years, continuing Executive KMP remuneration growth has averaged
12.4%, while profit growth has averaged 15.2%.
•
Short Term Incentive (STI) outcomes across our continuing Executive KMP were up 17%, driven by the 17% growth in Executive NPBT1.
Executive NPBT continues to be the basis for STI calculation.
•
Deferred STI earned was up 16%, which aligns with the average growth in statutory NPBT over the last two years.
•
The Long-Term Incentive (LTI) plan, with hurdles based on earnings per share (EPS) growth and total shareholder return (TSR) relative
to a basket of technology companies, resulted in 100% of ‘at risk’ LTI vesting for our Continuing Executive KMP. Over the same 3-year
vesting period, our TSR was 115%. This result reflects a strong performance, with LTI targets set by the Board achieved, ensuring
superior performance and long-term shareholder wealth creation. In FY24, no positive or negative discretion was exercised by the
Board in respect of vesting rewards.
In the fourth quarter of FY24, Stuart MacDonald assumed responsibility for directly running the Sales and Marketing functions, covering
for a temporary vacancy in that role. Following a strong sales result, Mr MacDonald was awarded a one-off STI of $300,000. This STI had
no deferred component.
Changes in FY25
The following changes will be made to the Executive KMP remuneration approach at TechnologyOne in FY25.
1.
The EPS hurdles for LTIs for Executive KMP will be increased. Historically, the LTI’s vest pro-rata between 50% and 100% for the EPS
CAGR range of 5% to 15%. From FY25 onwards, the EPS CAGR vesting range has been lifted to between 8% and 20% (vesting pro-
rata between 25% and 100%) with a commensurate increase in the opportunity. This change in vesting range encourages growth
above the historical 15% maximum opportunity.
2.
The deferred STI component of Executive KMP remuneration will be deferred into equity rights, further improving alignment with
shareholders, rather than be paid as cash.
Executive and Director changes
Mr John Mactaggart retired from the Board at the end of the 2024 AGM on 21 February 2024.
Mr Paul Robson was appointed to the Board on 1 July 2024.
Mr Rick Anstey will not be standing for re-election at the February 2025 Annual General Meeting.
Directors’ fees
In FY24, Directors’ Fees remained within the fee pool of $2,000,000 set at the 2022 Annual General Meeting. Further details are
described in section 7 of the Report.
Afterword
TechnologyOne remains focused on delivering sustainable long-term growth to its shareholders. 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
18 November 2024
(Unaudited)
1 Executive Net Profit Before Tax is calculated based on Company profit before tax and before the Executive STI is deducted.
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Remuneration Report
Contents
The remuneration report contains the following sections.
1 About this report
86
2 Remuneration governance
87
3 Executive Remuneration at TechnologyOne ‑ strategy, principles, and target mix
87
4 How Executive Remuneration is structured
89
5 Relationship between remuneration and Company performance
93
6 Service agreements for the Executive KMP
99
7 Non‑executive Director fees
100
8 Statutory Remuneration
101
9 Additional statutory disclosures
102
10 Key questions
105
(Audited)
Financial report
Remuneration Report
(Audited)
1
About this report
1.1
Basis for preparation of FY24 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
Period
NON‑EXECUTIVE DIRECTORS
Pat O’Sullivan
Independent Non-Executive Chair
Full year
Paul Robson
Independent Director
1 July 2024 –
30 September 2024
John Mactaggart
Non-independent Director
Major shareholder
1 October 2023 –
21 February 2024
Richard Anstey
Independent Director
Full year
Dr Jane Andrews
Independent Director
Remuneration Committee Chair
Audit and Risk Committee
Nomination and Governance Committee
Full year
Sharon Doyle
Independent Director
Audit and Risk Committee
Nomination and Governance Committee
Full year
Clifford Rosenberg
Independent Director
Nomination and Governance Committee Chair
Remuneration Committee
Full year
Peter Ball
Independent Director
Audit and Risk Committee Chair
Remuneration Committee
Full year
EXECUTIVE DIRECTOR
Edward Chung
Managing Director and Chief Executive Officer
Full year
EXECUTIVE KMP
Stuart MacDonald
Chief Operating Officer
Full year
Cale Bennett
Chief Financial Officer
Full year
Remuneration Report
(Audited)
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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
annually.
Before 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 is conducted without the executives present.
3
Executive Remuneration at TechnologyOne ‑ strategy, principles, and
target mix
3.1
Our remuneration strategy and principles
At TechnologyOne, our remuneration strategy is aligned with our vision of “making life simple for our community”. The Board believes that 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 that 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 ASX100 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, expanding our product set, winning new business, expanding product uptake for existing
customers and driving continued profit growth in the current year is the key to our long-term success. 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, ensuring total on-target remuneration falls within the expected range
relative to the market. 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, securing long-term success and shareholder wealth.
TechnologyOne 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.
TechnologyOne 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.
1 ARR is not an IFRS measure and is unaudited; it represents future contracted annual revenue at year-end.
Financial report
Remuneration Report
(Audited)
3
Executive Remuneration at TechnologyOne ‑ strategy, principles,
and target mix (continued)
3.1
Our remuneration strategy and principles (continued)
Target remuneration mix
The Target 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 graphs below show the accounting fair value of
the remuneration mix and exclude the retention LTIs granted in FY22 and the one-off bonus STI for Stuart MacDonald in FY24 as they are
considered a one-off.
29%
42%
9%
20%
Figure 1. Target CEO remuneration mix
(contract target started in FY17)
Fixed
STI-current
Deferred STI
LTI
Fixed
STI-current
Deferred STI
LTI
Fixed
33%
At-risk
27%
7%
33%
Figure 2. CEO remuneration mix
FY24 (excl. retention LTI)
Fixed
At-risk
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).
47%
10%
17%
Fixed
STI-current
Deferred STI
LTI
Fixed
STI-current
Deferred STI
LTI
Figure 3. Target Executive KMP remuneration mix
(contract target started in FY17)
Fixed
33%
At-risk
27%
7%
33%
Figure 4. Executive KMP remuneration mix
FY24 (excl. retention LTI and one-off STI)
Fixed
26%
At-risk
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.
1 The growth in STI-current as a proportion of overall remuneration seen in the graphs above arises due to the STI award being uncapped on both the upside and the downside, with
strong profit growth recorded by the company over the period. 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.
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
Description
Opportunity
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 and comparatively low growth in Fixed
Remuneration, 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 has been presented below. This structure encourages
retention of outperformers by increasing their earning potential the longer they stay with the Company, aligning 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.
STI cap
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.
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 TechnologyOne and continue to work hard to achieve results each year. This provides
benefit to our shareholders through an ever-increasing recurring revenue base.
Likewise, if the Company under-performs resulting in lower results, there is a significant financial impact to Executives as
their STI forms a large portion of their total remuneration. Given that the Executive’s 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.
Malus
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.
Controls
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)
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.
Termination
On termination, the Executive foregoes any further STI payments that 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.
Financial report
Remuneration Report
(Audited)
4
How Executive Remuneration is structured (continued)
4.2
Short‑term incentive (STI) (continued)
TechnologyOne 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
STI rate set at 75% to 100% of fixed remuneration (as established during contract negotiations).
$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/$100m).
Assuming an ambitious profit target increase of 15% per annum and actual profit increases of 12% per annum, the following illustrates the
operation of the STI.
Year
STI
(%)
Profit
target
($m)
Actual
profit
($m)
STI target
(STI % x profit
target ($))
Actual STI
(STI % x actual
profit ($))
1
0.30%
100.00
97.40
300,000
292,200
2
0.30%
112.01
109.09
336,030
327,270
3
0.30%
125.45
122.18
376,350
366,540
As can be seen in this example, growth is achieved in the STI, in line with growth in company profit. This leads to an increase, over time, of
the proportion of STI to fixed remuneration.
4.3
Deferred STI
Feature
Description
Opportunity
An additional amount equal to 25% of the annual STI earned in the year under review is deferred (i.e. 20% of total STI)
and paid at the conclusion of the two-year period following the end of the financial year.
Award vehicle
Cash.
Cap
For the same reasons outlined in section 4.2 for the STI, this Deferred STI is also uncapped.
Deferral period and service
requirements
The award will only be paid at the conclusion of the two-year period following the end of the financial year, on the
condition that the Executive KMP remains employed with the Company for the entire deferral period.
Malus
The Deferred STI component is subject to a malus provision in that there must be no irregularities or other factors that
would or have affected the payment of that award.
Controls
The controls are in line with those in place for the STI. Refer section 4.2 for detail.
Termination
On termination, the Executive forgoes any accrued and Deferred STI.
The following provides a worked example to illustrate the operation of the Deferred STI.
Example 2: Amounts recognised for Deferred STI
As can be seen from the table below, the Deferred STI expense is recognised over a three-year period, being the year of award plus the
two years of deferral. The award is paid at the conclusion of the two-year period following the end of the financial year of the award. A
reward granted in FY24 will be paid to the Executive following the conclusion of FY26.
Amounts expensed for Deferred STI
FY
STI
Measure
STI
(%)
Financial
result
($m)
STI‑ received
immediately
($)
Deferred
STI
(%)
Deferred
STI
Year 1
Year 2
Year 3
Year 4
Year 5
1
NPBT
0.30%
97.40
292,200
25%
73,050
24,350
24,350
24,350
‑
‑
2
NPBT
0.30%
112.01
336,030
25%
84,008
‑
28,003
28,003
28,003
‑
3
NPBT
0.30%
122.18
366,540
25%
91,635
‑
‑
30,545
30,545
30,545
Total Expense
24,350
52,353
82,898
58,548
30,545
Cash Received by Executives
‑
‑
73,050
84,008
91,635
91
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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
Description
Opportunity
The value of the total number of LTI options and/or rights issued each year (a grant) to a KMP is typically set at 75% to
100% of fixed remuneration and is determined during contract negotiation when an KMP is hired.
Award vehicle
Each LTI entitles the KMP to 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).
Performance period
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 Payment 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.
Vesting conditions
Vesting conditions are applicable to KMP only.
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 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 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 LTIs earned per three-year performance target = Number of LTIs available for that target x percentage
earned x individual performance factor2
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). Calculations for the vesting outcomes for relative TSR vesting conditions are prepared by an
independent external company.
2 The individual performance factor is typically 100% unless Malus Provision is applied.
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
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.
Expiry
Any LTIs that have vested will expire 5 years after vesting.
Revision
We do not revise our LTIs over the relevant performance period.
Malus
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.
Financial report
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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
Description
Description
Award vehicle
Options
Equity Performance Rights
Vesting period
3 years
3 years
LTI grant value
$300,000
$300,000
LTI metrics and weighting
EPS (75%) and relative TSR (25%)
EPS (75%) and relative TSR (25%)
Fair value of option at
grant date
$1.50
$7.50
Share price at grant date
$7.65
$7.65
Exercise price (10-day VWAP prior to 30 September)
$7.39
$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
FY
LTI metrics
Weighting
Grant number
of units
Expense of
Grant
Share price
at grant
Exercise price
per share
1
EPS growth %
75%
150,000
$225,000
$7.65
$7.39
2
Relative TSR
25%
50,000
$75,000
$7.65
$7.39
200,000
$300,000
For the Year 1 tranche of LTIs, the fair value is $300,000. This is expensed over 3 years. For the purposes of this worked example, we have
assumed that the fair value of options granted with each vesting metric is the same.
4.5
Retention LTI (option grant)
A one-off Retention LTI was granted to selected high performing executives in FY22 to ensure the retention of strategic capability,
business continuity and performance momentum following the departure of the long-time founder and Chair Adrian Di Marco and given
the competitive environment for talent at the time. The grant will vest in November 2026.
This grant was intended as a one-off grant in exceptional circumstances and has therefore not repeated since.
Amounts recognised for Retention LTIs (option grant)
The Retention LTI (option grant) expense is recognised over the service period up to 30 November 2026 and adjusted annually to reflect
the probability of vesting.
93
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5
Relationship between remuneration and Company performance
5.1
TechnologyOne’s five‑year performance
The below table sets out information showing the creation of shareholder wealth for the years ended 30 September 2020 to 30
September 2024. Profits and dividends have grown over the last five years, and growth in the fair value of Executive KMP’s remuneration
has not exceeded growth in profits over the period.
2020
2021
2022
2023
2024
Net Profit before Tax reported
($’000)
82,470
97,843
112,320
129,854
152,874
Profit before tax growth
(%)
8
19
15
16
18
Total dividend, including special
(cps)
12.88
13.91
17.02
19.52
22.45
Share price for the year (closing)
($)
7.94
11.36
10.60
15.51
23.86
Earnings per share (basic)
(cps)
19.75
22.64
27.51
31.71
36.24
EPS growth
(%)
8
15
22
15
14
Annual Total Shareholder Return (TSR)
(%)
12
45
(5)
48
55
Rolling 3‑year TSR
(%)
58
97
61
97
115
Continuing Executive STI1
($,000)
1,136
1,343
1,537
1,767
2,065
Continuing Executive STI Growth
(%)
9
18
14
15
17
Continuing Executive STI % of NPBT
(%)
1
1
1
1
1
LTI vesting as a % of maximum
(%)
98
99
97
100
100
Continuing Executive KMP remuneration growth2
(%)
12
12
8
5
25
Executive Remuneration % of NPBT
(%)
7
6
5
4
5
1 Excluding one-off STI awarded to Mr MacDonald in FY24 for assuming Sales and Marketing duties and delivering a strong sales result in Q4 FY24.
2 Excluding retention LTI granted in FY22 and one-off STI awarded to Stuart MacDonald in FY24.
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, and now to a SaaS+ company.
As seen from the tables above, the Executive Remuneration Framework has successfully driven performance and the creation of
shareholder wealth over the longer term.
Financial report
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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
2024
($)
2023
($)
Variance
(%)
Notes
Fixed remuneration
Base salary
829,313
521,250
Increase was awarded following benchmarking
exercise indicating Mr Chung’s remuneration was
significantly below peers. This was awarded in
base (30%) and LTI’s (70%).
Superannuation
28,125
27,500
Total fixed remuneration
857,438
548,750
56%
Base remuneration was increased following
benchmarking.
STI
STI ‑ Executive NPBT
157,256,894
134,562,612
17%
STI %
0.78%
0.78%
Total STI
1,226,604
1,049,588
17%
Growth in STI is consistent with growth in NPBT,
the primary measure of STI.
Total Deferred STI
265,791
230,081
16%
Deferred STI (refer to section 4.3)
LTI
Fair value of options recognised
581,624
391,346
LTI’s are expensed over the three vesting years.
LTI was increased following benchmarking in FY24.
Fair value of options forfeited
‑
‑
Fair value of EPRs recognised
‑
‑
Fair value of EPRs forfeited
‑
‑
Total LTI
581,624
391,346
49%
Fair value of Retention LTI recognised
499,652
305,710
63%
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 fair value of the grant will be recognised over
the five year vesting term FY22 to FY26.
Total remuneration
3,431,109
2,525,475
36%
95
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Stuart MacDonald
Chief Operating Officer
2024
($)
2023
($)
Variance
(%)
Notes
Fixed remuneration
Base salary
438,672
432,592
Superannuation
28,125
27,500
Total fixed remuneration
466,797
460,092
1%
STI
STI - Executive NPBT
157,256,894
134,562,612
17%
STI %
0.533%
0.533%
STI
838,179
717,219
One-off STI
300,000
‑
100%
One-off STI for assuming extra duties and
delivering strong sales results in Q4 FY24. This STI
did not include a deferred component.
Total STI
1,138,179
717,219
59%
Growth in STI, excluding the one-off component,
is consistent with growth in NPBT, the primary
measure of STI.
Total Deferred STI
181,624
157,222
16%
Deferred STI (refer to section 4.3)
LTI
Fair value of options recognised
301,006
234,040
LTI’s are expensed over the three vesting years.
LTI was increased following benchmarking in FY24.
Fair value of options forfeited
‑
‑
Fair value of EPRs recognised
‑
‑
Fair value of EPRs forfeited
‑
‑
Total LTI
301,006
234,040
29%
LTI was increased following benchmarking.
Fair value of Retention LTI recognised
286,262
173,138
65%
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 fair value of the grant will be recognised over
the five year vesting term FY22 to FY26.
Total remuneration
2,373,868
1,741,711
36%
Financial report
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5
Relationship between remuneration and Company performance (continued)
5.2
Detail of Executive remuneration and performance (continued)
Cale Bennett
Chief Financial Officer (commenced 01 August 2023)
2024
($)
2023
($)
Variance
(%)
Notes
Fixed remuneration
Base salary
371,875
60,060
FY23 included the salary in relation to two months
of the prior year as commencement date was 1
August 2023.
Superannuation
28,125
6,607
Total fixed remuneration
400,000
66,667
500%
FY23 included the salary in relation to two months
of the prior year as commencement date was 1
August 2023.
STI
STI - Executive NPBT
157,256,894
41,970,337
275%
STI %
0.297%
0.297%
Total STI
467,053
124,652
275%
FY23 included the STI in relation to two months
of the prior year as commencement date was 1
August 2023.
Total Deferred STI
49,309
10,388
375%
Deferred STI (refer to section 4.3)
LTI
Fair value of options recognised
89,729
‑
LTI’s are expensed over the three vesting years.
Fair value of options forfeited
-
-
Fair value of EPRs recognised
-
-
Fair value of one-off LTI options
498,215
96,153
Value for buyout of equity held from previous
employment. This is not an annual grant.
Total LTI
587,944
96,153
511%
Total remuneration
1,504,306
297,860
405%
97
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5.3
Options and EPRs that became eligible to vest during FY24
During the year, Edward Chung and Stuart MacDonald completed a three-year performance period relating to the LTI instruments
granted to them in FY22 and vesting in FY24. 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
Target
Performance
measure
achieved
Number
forfeited
LTIs vested
% LTI
vested
FY22
Relative TSR
Option
48,104
3 year
FY24
75th
percentile
94.9%
‑
48,104
100%
EPS Growth
Option
144,312
3 year
FY24
15%
17.0%
‑
144,312
100%
192,416
192,416
100%
Stuart MacDonald
Grant year
Performance
measure
Option or
EPR
Number
of LTIs
available
Testing
Testing
year
Target
Performance
measure
achieved
Number
forfeited
LTIs vested
% LTI
vested
FY22
Relative TSR
Option
28,768
3 year
FY24
75th
percentile
94.9%
‑
28,768
100%
EPS Growth
Option
86,305
3 year
FY24
15%
17.0%
‑
86,305
100%
115,073
115,073
100%
During the year, Cale Bennett received a one-off LTI grant as a buyout of equity held from previous employment. This grant vested within
one year and had no performance targets other than service attached to it.
Cale Bennett
Grant year
Performance
measure
Option or
EPR
Number
of LTIs
available
Testing
Testing
year
Target
Performance
measure
achieved
Number
forfeited
LTIs vested
% LTI
vested
FY24
Service
Option
167,580
N/A
N/A
N/A
N/A
-
167,580
100%
Financial report
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5
Relationship between remuneration and Company performance (continued)
5.4
Options/EPRs that have been granted in FY23 and FY24 and not yet vested
Executives are given the choice to receive their Long-Term Incentives in Options or EPRs. In FY24, Executives elected to receive their LTIs
as Options.
Edward Chung
Grant year
Performance measure
Number of
LTIs available
Testing
Testing year
LTIs due to vest
FY23
Relative TSR
43,126
3 year
FY25
Nov 2025
EPS Growth
129,378
3 year
FY25
Nov 2025
FY24
Relative TSR
81,973
3 year
FY26
Nov 2026
EPS Growth
245,918
3 year
FY26
Nov 2026
Stuart MacDonald
Grant year
Performance measure
Number of
LTIs available
Testing
Testing year
LTIs due to vest
FY23
Relative TSR
25,791
3 year
FY25
Nov 2025
EPS Growth
77,373
3 year
FY25
Nov 2025
FY24
Relative TSR
40,414
3 year
FY26
Nov 2026
EPS Growth
121,243
3 year
FY26
Nov 2026
Cale Bennett
Grant year
Performance measure
Number of
LTIs available
Testing
Testing year
LTIs due to vest
FY24
Service
189,473
N/A
N/A
Nov 2025
Relative TSR
28,090
3 year
FY26
Nov 2026
EPS Growth
84,270
3 year
FY26
Nov 2026
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5.5
One-off LTI Option Issuances
Edward Chung
Grant year
Performance measure
Number of options available
for vesting
Vesting
Total grant value
FY22
Service
720,165
Nov 2026
$2,038,066
Stuart MacDonald
Grant year
Performance measure
Number of options available
for vesting
Vesting
Total grant value
FY22
Service
475,000
Nov 2026
$1,154,250
Cale Bennett
Grant year
Performance measure
Number of options available
for vesting
Vesting
Total grant value
FY24
Service
167,580
Nov 2024
$367,000
FY24
Service
189,473
Nov 2025
$568,419
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 that 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
Contract
term
Termination notice
by either party
Post‑employment
restraint
CEO
Ongoing
6 months
12 months
Other Executive KMP
Ongoing
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. No other additional termination or post-employment benefits are provided on termination of employment. Refer to sections
4.2, 4.3 and 4.4 for treatment of STIs and LTIs on cessation of employment.
Financial report
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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. An independent consultant reviews director fee levels
and the fee pool every three years 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 FY23, Board fees were $175,000 per Director, including statutory
superannuation contributions. This was increased to $185,500
in FY24.
An additional fee of $29,150 (2023: $27,500) was paid to each
committee chair. The Independent Chairman’s fee was $318,000 in
FY24 (FY23: $300,000).
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, approved by shareholders at the Annual General
Meeting on 22 February 2023.
The table below sets out the Non‑Executive Director Fees paid
during FY23.
Board and Committee Fees (inclusive of
superannuation)
FY24 Fees
Board Chairman – all-inclusive fee
$318,000
Non-Executive Director – base board fee
$185,500
Audit Committee Chair
$29,150
Audit Committee Member
-
Remuneration Committee Chair
$29,150
Remuneration Committee Member
-
Nomination Committee Chair
$29,150
Nomination Committee Member
-
The Board Chair does not receive any additional committee 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 158,092 shares representing
0.05% 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 $23.86.
2024
Balance at the
end of the year
% of Mandatory
Shareholding
Requirement
Non‑Executive Directors of Technology One Limited
P O’Sullivan
39,779
100%
R Anstey
20,000
100%
Dr J Andrews
30,600
100%
S Doyle
18,280
100%
C Rosenberg
27,533
100%
P Ball
21,900
100%
P Robson1
-
-
1 P Robson has 36 months from appointment date to meet the Mandatory Shareholder
Requirement.
2023
Balance at the
end of the year
% of Mandatory
Shareholding
Requirement
Non‑Executive Directors of Technology One Limited
P O’Sullivan
39,779
100%
J Mactaggart
24,902,500
100%
R Anstey
20,000
100%
Dr J Andrews
30,600
100%
S Doyle
18,280
100%
C Rosenberg
27,533
100%
P Ball
21,900
100%
101
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8
Statutory Remuneration
The information in the table below is based on the statutory accounting fair value of remuneration earned for each KMP and does not represent the value offered or realised.
Short‑term employee benefits
Post
employment
benefits
Long‑term incentives
(including Retention LTIs)
Name
Fixed
remuneration
Director and
Chair fees
Superannuation
Total fixed
remuneration
Short‑term
Incentive
One off STI
Bonus
Termination
benefits
Deferred
STI
Value
of share
options
Value of
retention LTIs
Total
% growth
on prior
year excl LTI
% growth
on prior
year incl LTI
Non‑Executive Directors
Pat O'Sullivan
2024
‑
289,875
28,125
318,000
‑
‑
‑
‑
‑
‑
318,000
6%
6%
2023
‑
272,500
27,500
300,000
‑
‑
‑
‑
‑
‑
300,000
J Mactaggart (Non-
executive Director)1
2024
‑
69,554
7,738
77,292
‑
‑
‑
‑
‑
‑
77,292
(56%)
(56%)
2023
‑
158,193
16,807
175,000
‑
‑
‑
‑
‑
‑
175,000
R Anstey (Non-
executive Director)
2024
‑
166,930
18,570
185,500
‑
‑
‑
‑
‑
‑
185,500
6%
6%
2023
‑
158,193
16,807
175,000
‑
‑
‑
‑
‑
‑
175,000
Dr J Andrews (Non-
executive Director
2024
‑
193,162
21,488
214,650
‑
‑
‑
‑
‑
‑
214,650
6%
6%
2023
‑
183,052
19,448
202,500
‑
‑
‑
‑
‑
‑
202,500
S Doyle (Non-
Executive Director)
2024
‑
166,930
18,570
185,500
‑
‑
‑
‑
‑
‑
185,500
6%
6%
2023
‑
158,193
16,807
175,000
‑
‑
‑
‑
‑
‑
175,000
C Rosenberg (Non-
Executive Director)
2024
‑
193,162
21,488
214,650
‑
‑
‑
‑
‑
‑
214,650
6%
6%
2023
‑
183,052
19,448
202,500
‑
‑
‑
‑
‑
‑
202,500
P Ball (Non-Executive
Director)
2024
‑
193,162
21,488
214,650
‑
‑
‑
‑
‑
‑
214,650
6%
6%
2023
‑
183,052
19,448
202,500
‑
‑
‑
‑
‑
‑
202,500
R McLean (Non-
Executive Director)2
2024
‑
-
-
-
‑
‑
‑
‑
‑
‑
-
(100%)
(100%)
2023
‑
62,410
6,631
69,041
‑
‑
‑
‑
‑
‑
69,041
P Robson (Non-
Executive Director)3
2024
‑
41,732
4,643
46,375
‑
‑
‑
‑
‑
‑
46,375
2023
‑
‑
‑
-
‑
‑
‑
‑
‑
‑
-
Total Non-Executive
KMP
2024
-
1,314,506
142,111
1,456,617
-
-
-
-
-
1,456,617
(3%)
(3%)
2023
-
1,358,643
142,898
1,501,541
-
-
-
-
-
1,501,541
Managing Director
E Chung (Managing
Director & Chief
Executive Officer)4
2024
829,313
‑
28,125
857,438
1,226,604
‑
‑
265,791
581,624
499,652
3,431,109
29%
36%
2023
521,250
‑
27,500
548,750
1,049,588
‑
‑
230,081
391,346
305,710
2,525,475
Other Executive KMP
S MacDonald (Chief
Operating Officer)5
2024
438,672
‑
28,125
466,797
838,179
300,000
-
181,624
301,006
286,262
2,373,868
11%
36%
2023
432,592
‑
27,500
460,092
717,219
-
-
157,222
234,040
173,138
1,741,711
C Bennett (Chief
Financial Officer)6
2024
371,875
‑
28,125
400,000
467,053
-
-
49,309
587,944
-
1,504,306
354%
405%
2023
60,060
‑
6,607
66,667
124,652
-
-
10,388
96,153
-
297,860
P Jobbins (Chief
Financial Officer)7
2024
-
‑
-
-
-
-
-
-
-
-
(100%)
(100%)
227,023
‑
27,500
254,523
369,240
-
247,000
(91,960)
58,279
(29,115)
807,967
Total Executive KMP
2024
1,639,860
‑
84,375
1,724,235
2,531,836
300,000
-
496,724
1,470,574
785,914
7,309,283
22%
36%
2023
1,240,925
‑
89,107
1,330,032
2,260,699
-
247,000
305,731
779,818
449,733
5,373,013
Total (Non‑Executive
Directors and
Executive KMP)
2024
1,639,860
1,314,506
226,486
3,180,852
2,531,836
300,000
-
496,724
1,470,574
785,914
8,765,900
15%
28%
2023
1,240,925
1,358,643
232,005
2,831,573
2,260,699
-
247,000
305,731
779,818
449,733
6,874,554
1 Mr Mactaggart retired on 21 February 2024.
2 Mr McLean retired on 22 February 2023.
3 Mr Robson commenced 1 July 2024.
4 In addition to Mr Chung’s remuneration above, the following statutory
entitlements were accrued for during the year – annual leave increase of
$77,007 (FY23: increase $12,614) and long service leave increase of $97,635
(FY23: increase $11,350).
5 Mr MacDonald was awarded a one-off STI for assuming additional
responsibility and delivering strong sales results in 4Q FY24. This STI did not
include a deferred component. In addition to Mr Macdonald’s remuneration
above, the following statutory entitlements were accrued during the year –
annual leave decrease of $4,589 (FY23: increase $20,020) and long service
leave increase of $20,750 (FY23: increase $14,895).
6 Mr Bennett commenced on 1 August 2023. In addition to Mr Bennett’s
remuneration above, the following statutory entitlements were accrued for
during the year – annual leave increase of $9,964 (FY23: increase $2,753).
7 Mr Jobbins resigned on 17 July 2023.
Financial report
Remuneration Report
(Audited)
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
2024
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
1,340,002
327,891
(254,917)
-
-
1,412,976
192,416
1,220,560
Stuart MacDonald
954,589
161,657
(261,352)
-
-
854,894
115,073
739,821
Cale Bennett
-
469,413
-
-
-
469,413
167,580
301,833
9.2
Fair value of options granted in FY24
2024
Name
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
Edward Chung3
245,918
3.93
02/10/2023
15.57
17/11/2026
17/11/2031
966,458
EPS
81,973
3.59
02/10/2023
15.57
17/11/2026
17/11/2031
294,283
Relative TSR
Stuart MacDonald
121,243
3.56
02/10/2023
15.57
17/11/2026
17/11/2031
431,625
EPS
40,414
3.01
02/10/2023
15.57
17/11/2026
17/11/2031
121,646
Relative TSR
Cale Bennett
167,580
2.19
02/10/2023
15.57
19/11/2024
19/11/2029
367,000
Service
189,473
3.00
02/10/2023
15.57
18/11/2025
18/11/2030
568,419
Service
84,270
3.56
02/10/2023
15.57
17/11/2026
17/11/2031
300,001
EPS
28,090
3.01
02/10/2023
15.57
17/11/2026
17/11/2031
84,551
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 expensed over the period from grant date to vesting date. The expensed amount is included in the
remuneration tables above.
3 Edward Chung’s granted options for FY24 were approved at the 2024 Annual General Meeting (21 Feb 24).
The model inputs for options granted to Executive KMP are as follows:
(a)
Options are granted for no consideration. Each tranche vests subject to meeting performance hurdles
(b)
Dividend yield –1.00% - 1.35%
(c)
Expected volatility – 26.5% - 27.8%
(d)
Risk-free interest rate – 3.73% - 4.14%
(e)
Price of shares on grant date – $15.51 - $16.51
103
Making life simple for our community
The performance measures for LTI grants made in FY24 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.
Performance Metrics
Performance period
Testing
Weighting (all KMP)
EPS growth
3 years
3 years
75%
Relative TSR1
3 years
3 years
25%
The performance targets to be achieved by the Executives are set out below:
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.
2024
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
39,779
-
-
-
39,779
J Mactaggart
24,902,500
-
-
(24,902,500)
-
R Anstey
20,000
-
-
-
20,000
Dr J Andrews
30,600
-
-
-
30,600
S Doyle
18,280
-
-
-
18,280
C Rosenberg
27,533
-
-
-
27,533
P Ball
21,900
-
-
-
21,900
P Robson1
-
-
-
-
-
1 Represents balance held at date of resignation.
2024
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
700,068
254,917
(254,917)
-
700,068
S MacDonald
2,862
261,352
(262,129)
2,698
4,783
C Bennett
‑
‑
‑
‑
‑
1 Represents total shares obtained via the Employee Share Plan.
Financial report
Remuneration Report
(Audited)
9
Additional statutory disclosures (continued)
9.3
Equity instruments held by Directors and Key Management Personnel (continued)
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
39,779
-
-
-
39,779
R McLean
69,737
-
(20,000)
(49,737)
-
J Mactaggart
26,902,500
-
(2,000,000)
-
24,902,500
R Anstey
30,000
4,000
(14,000)
-
20,000
Dr J Andrews
30,600
-
-
-
30,600
S Doyle
18,280
-
-
-
18,280
C Rosenberg
27,533
-
-
-
27,533
P Ball
21,900
-
-
-
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
900,068
257,603
(457,603)
-
700,068
S MacDonald
46,367
54,000
(100,367)
2,862
2,862
P Jobbins
68
142,583
(142,583)
(68)
-
C Bennett
-
-
-
-
-
1 The balance for S MacDonald represents total shares obtained via the Employee Share Plan. The balance of P Jobbins represents balance held at date of resignation.
9.4
Loans to Directors and Key Management Personnel
There have been no loans to Directors or Key Management Personnel during the financial year (2023: nil).
9.5
Other transactions with Key Management Personnel
During the year there were no transactions with the Key Management Personnel. This report is made in accordance with a resolution
of Directors.
105
Making life simple for our community
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 ASX100 companies but has been
adapted to meet the demands of the enterprise software market. Relative to our ASX-listed peers, our Executives
receive:
(a)
Relatively low fixed remuneration to enable a greater emphasis on performance.
(b)
Relatively large at-risk short-term incentive (STI) portion aligning Executives to current year performance.
(c)
Deferred STI component to help further drive long-term shareholder wealth and ensure that we retain high
performing Executives.
(d)
Long-term incentives (LTI) linked to long-term strategy, targets, and shareholder wealth creation.
(e)
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.
The 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).
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.
1 ARR is not an IFRS measure and is unaudited, it represents future contracted annual revenue at year end.
Financial report
Remuneration Report
(Audited)
Key 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.
Why do we have a
Deferred STI?
The award is only paid out to the Executive if they remain employed 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 FY24.
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 2024 compared to executive remuneration growth.
The Executive Remuneration Framework has successfully driven performance and the creation of shareholder wealth
over the longer term.
Were Retention LTIs granted?
No retention LTIs were granted in FY24.
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 2024 compared to executive remuneration growth.
The Executive Remuneration Framework has successfully driven performance and the creation of shareholder wealth
over the longer term.
10 Key questions (continued)
107
Making life simple for our community
Contents
1 Corporate Governance Statement
108
2 Board of Directors
108
3 Company Secretary
112
4 Audit & Risk Committee
113
5 Remuneration Committee
114
6 Nomination & Governance Committee
114
7 Corporate Governance Principles & Recommendations
116
7.1 Ethical Standards and Code of Business Conduct
116
7.2 Safeguard Integrity in Financial Reporting
117
7.3 Continuous Disclosure
117
7.4 Risk Assessment Management
118
7.5 Accounting Standards and Company Policies
120
7.6 Remuneration Principles
120
7.7 Performance Evaluation
121
7.8 Trading in Company Securities
121
7.9 Shareholders' Rights and Communication
116
8 ASX Corporate Governance Principles and Recommendations 4th Edition Compliance
122
Corporate Governance Statement
Financial report
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.technology1.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 02/03/2021)
Edward Chung
Managing Director
(appointed 15/08/2023)
(CEO since 23/05/2017)
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)
Paul Robson
Non‑Executive Director
Independent (appointed 01/07/2024)
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.
109
Making life simple for our community
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.
Matters 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.
Financial report
Corporate Governance Statement
2
Board of Directors (continued)
Board Skills
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. As a collective, the Board has extensive
commercial skills and experience which provide a solid base for the governance of the Company.
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.
A summary of the breadth and depth of the Board’s experience and skills appear below:
Pat O’Sullivan
Richard Anstey
Jane Andrews
Sharon Doyle
Cliff Rosenberg
Peter Ball
Paul Robson
NON-EXEC
DIRECTORS
Ed Chung (MD)
Strategic &
Commercial Acumen
100%
Financial & Tax Acumen
Risk & Compliance
Information Technology &
Communications Industry
Software &
Product Development
Startups and
Early-Stage Investments
Corporate Governance
& ESG
Sales & Marketing
People, Culture & Conduct
Executive Management
& Leadership
Listed Entity Experience
International Business
Tenure (yrs)
3
18
8
6
5
4
0
6 Yrs Avg
1
Gender
M
M
F
F
M
M
M
28.5% F
71.5% M
M
In-Depth Knowledge
Sound Working Knowledge
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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.
•
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 majority 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.
While TechnologyOne does not currently have any Directors with
a security holding interest of greater than 10%, it would consider a
Director with a holding greater than 10% as not being independent.
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.
Financial report
Corporate Governance Statement
2
Board of Directors (continued)
Director Appointments
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.
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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:
1.
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.
2.
Tax Governance
•
Oversight of the Company’s group taxation matters and
ongoing development.
•
Review of taxation governance processes, policies, control
framework and reporting.
3.
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.
4.
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.
5.
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 fulfil 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.
Financial report
Corporate 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.
The number of meetings held during the year and the attendance
of the members is provided in the Annual Report.
The Remuneration 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.
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.
•
Ensuring that an effective induction process is in place for
new Board members.
•
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.
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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.
Assessment 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.
Financial report
Corporate 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. There were no material breaches of
the Code of Business Conduct during the last reporting period.
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, onboarding and
leadership programs.
•
The percentage of female representation on the Board
of TechnologyOne has continually increased over the last
4 years with the longer tenured directors retiring. This has
resulted in an increase from 22% in 2021 to 28% in 2024 for the
non-executive directors. TechnologyOne is tracking to achieve
33% in 2025.
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. TechnologyOne’s Diversity Policy is publicly
available on the corporate website.
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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 customers 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 2024 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.
7.2
Safeguard Integrity in Financial Reporting
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 has 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. Once made, directors
are promptly provided with copies of all announcements made
under listing rule 3.1.
Financial report
Corporate Governance Statement
7
Corporate Governance Principles & Recommendations (continued)
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).
People 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
groups and early adopter programs.
•
Continuous investment in R&D and ‘tribal days’ including
Hack Day.
•
Ongoing monitoring of operating environment and competitors.
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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.
Software Risk
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:
•
Diversity
•
Customer satisfaction
•
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.
Financial report
Corporate Governance Statement
7
Corporate Governance Principles & Recommendations (continued)
7.5
Accounting Standards and Company Policies
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 Technology
One. 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.
7.6
Remuneration Principles
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.
TechnologyOne’s remuneration principles includes clawback
provisions. The Remuneration Committee considers this annually
before recommending the vesting of KMP Deferred STI and
LTI. The clawback provision was not invoked during the latest
reporting period.
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 and clawback provisions.
•
Termination payments should be agreed in writing and in
advance if any are to be provided.
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7.7
Performance Evaluation
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 2024
annual review:
•
Performance evaluation of Directors and Senior Executives.
•
Review the Board's skills and experience regarding the
company's current operations and identify 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 meetings 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.
7.8
Trading in Company Securities
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 Directors’ 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.
Financial report
Corporate Governance Statement
7
Corporate Governance Principles
& Recommendations (continued)
7.9
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. Feedback provided by key stakeholders is
collated annually with material items reported to and
considered by the Board Committees. These reports are used
to continually improve the content and way information is
provided for stakeholders.
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.
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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 FY24 is 23%
•
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
•
A tax contribution summary of income tax paid.
Information in relation to the year ended 30 September 2024 is
set out below.
Our Approach to Tax
TechnologyOne has a tax governance framework which has been
approved by the Board. Tax falls under the oversight of the Audit
and Risk Committee.
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.
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 (ATO).
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 2024.
Year ended 30 September 2024
Consolidated
Global Group AUD
Corporate income taxes
30,727,771
Fringe benefit taxes
3,290,237
Payroll taxes
11,658,580
Net GST/VAT taxes
46,182,431
Employee taxes remitted
72,619,003
Total
164,478,022
Financial report
Financial Report
Contents
Financial Statements
125
Consolidated income statement
125
Consolidated statement of comprehensive income
125
Consolidated statement of financial position
126
Consolidated statement of changes in equity
127
Consolidated statement of cash flows
128
Notes to the consolidated financial statements
129
125
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Consolidated income statement
For the year ended 30 September 2024
Notes
30‑Sep‑24
($’000)
30‑Sep‑23
($’000)
Revenue ‑ SaaS and continuing business
505,603
426,379
Revenue ‑ Legacy licence business
933
2,999
Revenue from contracts with customers
5
506,536
429,378
Other income
5
8,890
11,985
Variable costs
(23,168)
(21,031)
Variable customer SaaS costs
(37,990)
(34,863)
Total variable costs
(61,158)
(55,894)
Occupancy costs
(3,743)
(3,304)
Corporate costs
(37,303)
(32,305)
Depreciation and amortisation
6
(68,773)
(53,502)
Computer and communication costs
(10,283)
(9,715)
Marketing costs
(14,829)
(13,724)
Employee costs
6
(155,523)
(135,115)
Share‑based payments
6
(8,296)
(5,827)
Finance expense
(2,644)
(2,123)
Total operating costs
(301,394)
(255,615)
Profit before income tax
152,874
129,854
Income tax expense
7
(34,860)
(26,978)
Profit for the year
118,014
102,876
Cents
Cents
Basic earnings per share
30
36.24
31.71
Diluted earnings per share
30
36.03
31.54
The above consolidated income statement should be read in conjunction with the accompanying notes.
Consolidated statement of comprehensive income
For the year ended 30 September 2024
30‑Sep‑24
($’000)
30‑Sep‑23
($’000)
Profit for the year (from above)
118,014
102,876
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
373
3,500
Other comprehensive income/(loss) for the year, net of tax
373
3,500
Total comprehensive income for the year
118,387
106,376
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Financial Statements
Financial report
Financial Statements
Consolidated statement of financial position
As at 30 September 2024
Notes
30‑Sep‑24
($’000)
30‑Sep‑23
($’000)
ASSETS
Current assets
Cash and cash equivalents
8
55,208
198,265
Financial assets
9
223,481
25,000
Prepayments
26,793
25,151
Trade and other receivables
10
67,546
62,416
Contract assets
11
20,818
22,891
Other current assets
12
1,457
1,127
Contract acquisition costs
14
11,790
9,576
Total current assets
407,093
344,426
Non‑current assets
Property, plant and equipment
13
15,520
13,315
Right‑of‑use assets
20
51,645
22,641
Intangible assets
14
57,995
59,510
Capitalised development
14
173,035
148,618
Deferred tax assets
15
23,202
21,382
Contract assets
11
2,556
3,618
Contract acquisition costs
14
26,394
23,227
Total non‑current assets
350,347
292,311
Total assets
757,440
636,737
LIABILITIES
Current liabilities
Trade and other payables
16
33,172
49,247
Provisions
17
23,694
21,277
Deferred revenue
18
246,335
214,495
Current tax liabilities
12,489
9,923
Lease liability
20
7,096
8,894
Total current liabilities
322,786
303,836
Non‑current liabilities
Provisions
19
2,779
2,565
Other non‑current liabilities
42
68
Lease liability
20
52,571
24,262
Total non‑current liabilities
55,392
26,895
Total liabilities
378,178
330,731
Net assets
379,262
306,006
EQUITY
Contributed equity
21
77,321
67,466
Other reserves
22
118,099
99,604
Retained earnings
183,842
138,936
Total equity
379,262
306,006
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
127
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Consolidated statement of changes in equity
For the year ended 30 September 2024
Note
Contributed
equity
($’000)
Retained
earnings
($’000)
Dividend
reserve
($’000)
FOREX
reserve
($’000)
Share option
reserve
($’000)
Total equity
($’000)
Balance as at 1 October 2023
67,466
138,936
48,377
2,262
48,965
306,006
Profit for the year
-
118,014
-
-
-
118,014
Exchange differences on translation of reserves
-
-
-
373
-
373
Total comprehensive income for the period
-
118,014
-
373
-
118,387
Dividends paid
23
-
-
(64,846)
-
-
(64,846)
Transfer to dividends reserve
-
(73,108)
73,108
-
-
-
Exercise of share options
21
7,836
-
-
-
-
7,836
Employee share‑based compensation
21
2,019
-
-
-
(244)
1,775
Share-based payments
31
-
-
-
-
6,521
6,521
Tax impact of share trust
-
-
-
-
3,583
3,583
9,855
(73,108)
8,262
-
9,860
(45,131)
Balance at 30 September 2024
77,321
183,842
56,639
2,635
58,825
379,262
Balance as at 1 October 2022
57,635
99,587
41,455
(1,238)
41,658
239,097
Profit for the period
-
102,876
-
-
-
102,876
Exchange differences on translation of reserves
-
-
-
3,500
-
3,500
Total comprehensive income for the period
-
102,876
-
3,500
-
106,376
Dividends paid
23
-
-
(56,605)
-
-
(56,605)
Transfer to dividends reserve
-
(63,527)
63,527
-
-
-
Exercise of share options
21
8,139
-
-
-
-
8,139
Employee share-based compensation
21
1,692
-
-
-
244
1,936
Share-based payments
31
-
-
-
-
3,907
3,907
Tax impact of share trust
-
-
-
-
3,156
3,156
9,831
(63,527)
6,922
-
7,307
(39,467)
Balance at 30 September 2023
67,466
138,936
48,377
2,262
48,965
306,006
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Financial report
Financial Statements
Consolidated statement of cash flows
For the year ended 30 September 2024
Notes
30‑Sep‑24
($’000)
30‑Sep‑23
($’000)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
591,913
501,247
Payments to suppliers and employees (inclusive of GST)
(352,789)
(292,567)
Interest received
6,994
3,536
Net income taxes paid
(30,728)
(16,434)
Interest paid
(2,644)
(2,123)
Net cash inflow / (outflow) from operating activities
29
212,746
193,659
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
13
(6,322)
(7,770)
Payments for development expenditures and intangibles
14
(86,317)
(82,356)
Payments for investment in short‑term deposits
9
(198,481)
(25,000)
Net cash inflow / (outflow) from investing activities
(291,120)
(115,126)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options
7,836
8,139
Principal repayments of lease liabilities
20
(7,690)
(7,757)
Dividends paid to shareholders
23
(64,846)
(56,605)
Net cash inflow / (outflow) from financing activities
(64,700)
(56,223)
Net increase / (decrease) in cash and cash equivalents
(143,074)
22,310
Cash and cash equivalents at the beginning of the year
198,265
175,865
Effects of exchange rate changes on cash and cash equivalents
17
90
Cash and cash equivalents at the end of the year
8
55,208
198,265
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
129
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Notes to the consolidated
financial statements
1
Summary of material accounting policy information
The financial report of Technology One Limited (the Company) for the year ended 30 September 2024 was authorised for issue in
accordance with a resolution of Directors on 18 November 2024.
Technology One Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian
Securities Exchange.
The material 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
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 2024 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
On 9 April 2024 and 14 June 2024, the IASB and AASB, respectively,
issued IFRS 18 which will replace IAS 1 ‘Presentation of Financial
Statements’ for reporting periods beginning on or after 1 January
2027, with early application permitted.
IFRS 18 introduces new requirements on presentation within the
statement of profit or loss, including specified totals and subtotals.
It also requires disclosure of management-defined performance
measures and includes new requirements for aggregation and
disaggregation of financial information based on the identified
roles of the primary financial statements and the notes. Further,
the classification of interest and dividends within the statement of
cash flows will change for some entities. Management is currently
assessing the impact of IFRS 18 on presentation and disclosures in
the Group’s Financial Statements.
A number of other accounting standards and interpretations have
been issued and will be applicable in future periods. While these
remain subject to ongoing assessment, no significant impacts have
been identified to date. These pronouncements have not been
applied in the preparation of these Financial Statements.
(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.
(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 2024 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 2024, the Group had 154,169
treasury shares (2023: 161,813).
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.
Financial report
Notes to the consolidated
financial statements
(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.
(c)
Foreign currency translation
(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.
(d) Revenue recognition
The Group has the following key revenue categories:
1.
SaaS Fees
2.
Annual Licence Fees
3.
Consulting Services
4.
Initial Licence Fees
1
Summary of material accounting policy information (continued)
131
Making life simple for our community
The accounting policies for each of these categories has been
set out below:
Revenue categories
1.
SaaS Fees
Revenue from term SaaS contracts is 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 18 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.
2.
Annual Licence Fees
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 18 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.
4.
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.
Associated 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:
i.
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.
Financial report
Notes to the consolidated
financial statements
(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 claims the non-refundable R&D tax offset each year
based on its eligible R&D spend. From the financial year beginning
1 July 2021 onwards, this offset benefit changed from an 8.5%
premium, to be intensity based, remaining at an 8.5% premium (up
to 2% R&D intensity) and then increasing to a 16.5% premium (above
2% R&D intensity). The R&D tax concession results in a permanent
income tax benefit for the Group.
(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 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.
1
Summary of material accounting policy information (continued)
133
Making life simple for our community
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
residual value guarantees
•
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. 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
The components of variable costs comprise:
•
Costs incurred in obtaining a SaaS contract with a customer
are capitalised if the requirements in AASB 15 are fulfilled.
These costs 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.
•
Costs incurred in obtaining an initial licence fee contract
as well as incentives on achievement of KPIs. These are
expensed as incurred.
(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 incurred.
(j)
Impairment of assets
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.
Financial report
Notes to the consolidated
financial statements
(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 Groups’ 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.
(iii) Impairment
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.
(m) Financial assets
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.
(n) 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.
(o) Property, plant and equipment
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
3 ‑ 11 years
Computer software
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.
1
Summary of material accounting policy information (continued)
135
Making life simple for our community
(p) 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
5 ‑ 8 years
Customer contracts
6 ‑ 12 years
Trade names
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.
(iii) Software development
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;
(c)
Ability to use or sell the intangible asset;
(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.
(q) 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.
(r)
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.
Financial report
Notes to the consolidated
financial statements
(s)
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 31.
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.
(t)
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.
(u) Earnings per share
(i)
Basic earnings per share
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.
(v)
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.
(w) 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.
1
Summary of material accounting policy information (continued)
137
Making life simple for our community
2
Financial Risk Management
The Group is exposed to market risk (interest rate risk and foreign exchange risk), credit risk, and liquidity risk in the normal course of
business. The Group’s financial risk management is controlled by a central treasury department. The Board reviews and agrees policies
for managing each of these risks and they are summarised below.
(a) Market Risk
Interest rate risk
The Group’s income and financial cash flows are impacted by changes in market interest rates. The Group’s main interest rate exposure
during the period arose from interest receivable on cash deposited with banks.
Foreign exchange risk
The Group operates internationally and is exposed to foreign currency risk. Foreign exchange risk arises from future transactions and
recognized assets and liabilities denominated in a currency that is not the functional currency of the relevant entity within the Group.
When managing its net risk position, the Group uses foreign exchange spot and forward contracts.
At balance date, the Group had the following exposures in Australian dollar equivalents of amounts to foreign currencies:
Cash and Cash
equivalents
$’000
Trade and other
receivables
$’000
Total
2024
PGK
4,726
263
4,989
EUR
677
255
932
USD
317
91
408
HKD
-
26
26
Other
9
26
35
Total foreign
exchange risk
5,729
661
6,390
Based on the balances as at 30 September 2024, a 10% stronger
and 10% weaker Australian dollar against the currencies held,
would result in a loss of $613k and a gain of $671k respectively.
Cash and Cash
equivalents
$’000
Trade and other
receivables
$’000
Total
2023
PGK
4,388
1,193
5,581
EUR
1,268
344
1,612
USD
510
191
701
HKD
-
65
65
Other
3
-
3
Total foreign
exchange risk
6,169
1,793
7,962
Based on the balances as at 30 September 2023, a 10% stronger
and 10% weaker Australian dollar against the currencies held, would
have resulted in a loss of $727k and a gain of $881k respectively.
The following table summarises the foreign exchange rates for key currencies used in the preparation of the annual report.
NZD
GBP
PGK
EUR
USD
2024
Spot Rate
1.0889
0.5172
2.6713
0.6195
0.6924
Average Rate
1.0847
0.5197
2.4669
0.6139
0.6616
NZD
GBP
PGK
EUR
USD
2023
Spot Rate
1.0716
0.5264
2.2903
0.6077
0.6426
Average Rate
1.0817
0.5401
2.3046
0.6097
0.6646
(b) Credit risk
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 other financial institutions.
The Group’s exposure to credit risk relating to cash and cash equivalents arises from the ability of the counterparty to repay funds placed on
deposit. The Group’s cash and cash equivalent investments are held on deposit with counterparties holding an investment grade credit rating.
The Group’s policy is 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 Group’s exposure to bad debts historically insignificant.
Trade and other receivables are subject to the expected credit loss model. 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.
Financial report
Notes to the consolidated
financial statements
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.
Contract assets represent revenue recognised for contracts with customers which have not been invoiced at the end of the financial year, in
accordance with customer contracts. The balance has the same characteristics as trade receivables. The Group has, therefore, concluded
that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for contract assets.
Information on credit risk exposures is also contained in note 10.
On this basis, the loss allowance as at 30 September 2024 and 30 September 2023 was determined as follows:
Current
($’000)
More than 30
days past due
($’000)
More than 60
days past due
($’000)
More than 90
days past due
($’000)
Total
($’000)
2024
Expected loss rate (%)
(1%)
(2%)
(82%)
(86%)
(3%)
Carrying amount – trade receivables
63,851
1,643
428
1,422
67,344
Carrying amount – contract assets
23,577
-
-
-
23,577
Loss allowance
(1,061)
(37)
(349)
(1,216)
(2,663)
Current
($’000)
More than 30
days past due
($’000)
More than 60
days past due
($’000)
More than 90
days past due
($’000)
Total
($’000)
2023
Expected loss rate (%)
(1%)
(10%)
(7%)
(50%)
(2%)
Carrying amount – trade receivables
58,751
1,687
360
1,966
62,764
Carrying amount – contract assets
26,752
-
-
-
26,752
Loss allowance
(907)
(175)
(26)
(984)
(2,092)
The loss allowances for receivables and contract assets as at 30 September reconcile to the opening loss allowances as follows:
Trade Receivables ($’000)
Contract Assets ($’000)
Opening loss allowance at 30 September 2023
1,849
243
Increase/(decrease) in loss allowances recognized in the Consolidated Income Statement
1,183
(40)
Receivables written-off during the year as uncollectible
(572)
-
Closing loss allowance as at 30 September 2024
2,460
203
Trade Receivables ($’000)
Contract Assets ($’000)
Opening loss allowance at 30 September 2022
3,172
241
Increase/(decrease) in loss allowances recognized in the Consolidated Income Statement
176
2
Receivables written-off during the year as uncollectible
(1,499)
-
Closing loss allowance as at 30 September 2023
1,849
243
Receivables and contract assets are written-off where there is no reasonable expectation of recovery.
2
Financial Risk Management (continued)
139
Making life simple for our community
(c)
Liquidity risk
Liquidity risk arises from the financial liabilities of the Group and
the Group’s subsequent ability to meet their obligations to repay
their financial liabilities as and when they fall due. The Group’s
approach to managing liquidity is to ensure sufficient cash and
credit facilities are available to meet its liabilities when due, under
both normal and stressed conditions.
In addition to the cash position outlined in note 8 – Cash and
cash equivalents, the Group has the following credit facilities
available at 30 September 2024.
2024
($’000)
2023
($’000)
Credit Cards
Used
172
191
Unused
5,624
5,596
Total credit cards limit
5,796
5,787
Overdraft Facilities
Used
-
-
Unused
-
2,000
Total overdraft facilities available
-
2,000
The below table represents the maturing profile of the financial assets and financial liabilities as at the period end.
Less than
12 months
($’000)
Between 1
and 5 years
($’000)
Over 5
years
($’000)
Total contractual
cash flows
($’000)
AT 30 SEPTEMBER 2024
FINANCIAL ASSETS
Cash and cash equivalents
55,208
-
-
55,208
Financial assets
223,481
-
-
223,481
Trade and other receivables
67,546
-
-
67,546
Total
346,235
-
-
346,235
FINANCIAL LIABILITIES
Trade and other payables
33,172
-
-
33,172
Lease liabilities1
10,581
33,698
37,951
82,230
Total
43,753
33,698
37,951
115,402
Net inflow / (outflow)
302,482
(33,698)
(37,951)
230,833
Less than
12 months
($’000)
Between 1
and 5 years
($’000)
Over 5
years
($’000)
Total contractual
cash flows
($’000)
AT 30 SEPTEMBER 2023
FINANCIAL ASSETS
Cash and cash equivalents
198,265
-
-
198,265
Financial assets
25,000
-
-
25,000
Trade and other receivables
62,416
-
-
62,416
Total
285,681
-
-
285,681
FINANCIAL LIABILITIES
Trade and other payables
49,247
-
-
49,247
Lease liabilities1
10,609
24,867
1,640
37,116
Total
59,856
24,867
1,640
86,363
Net inflow / (outflow)
225,825
(24,867)
(1,640)
199,318
1 For lease liabilities, this table represents contracted future cashflows.
Financial report
Notes to the consolidated
financial statements
2
Financial Risk Management
(continued)
(d) Fair value measurement
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.
(e) Capital risk management
The Group manages its capital to ensure that its entities can
continue as going concerns while maximising the return to
stakeholders through the optimisation of their debt and
equity balances.
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.
3
Critical accounting estimates
and judgments
Estimates and judgements 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 for goodwill impairment annually, in
accordance with the accounting policy stated in note 1(p)
(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 31.
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.
4
Segment information
(a) Description of segments
The Group’s chief operating decision maker (CoDM), being the
Chief 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.
141
Making life simple for our community
(b) Segment information provided to the Chief Operating Decision Maker
2024
Software
($’000)
Consulting
($’000)
Corporate
($’000)
Total
($’000)
REVENUE
SaaS fees1
407,386
-
-
407,386
Annual licence fees1
17,785
-
-
17,785
Consulting services1
-
80,520
-
80,520
Initial licence fees2
845
-
-
845
Intersegment revenue
(551)
678
(127)
-
Intersegment royalty
(78,120)
(9,030)
87,150
-
Total revenue from contracts with customers
347,345
72,168
87,023
506,536
Other income
393
-
8,497
8,890
EXPENSES
Employee and share-based payments costs
(76,881)
(54,877)
(32,061)
(163,819)
Depreciation and amortisation
(65,292)
(728)
(2,753)
(68,773)
Variable costs
(47,440)
(4,484)
(9,234)
(61,158)
Corporate and other costs
(11,524)
(5,352)
(37,097)
(53,973)
Marketing costs
(14,649)
(27)
(153)
(14,829)
Total external expenses
(215,786)
(65,468)
(81,298)
(362,552)
Profit before tax
131,952
6,700
14,222
152,874
Income tax expense
(34,860)
Profit for the year
118,014
Total assets
757,440
Total liabilities
378,178
Total depreciation and amortisation
(68,773)
1 Recognised over time / as services are rendered.
2 Recognised at a point in time.
Financial report
Notes to the consolidated
financial statements
2023
Software
($’000)
Consulting
($’000)
Corporate
($’000)
Total
($’000)
REVENUE
SaaS fees1
316,181
-
-
316,181
Annual licence fees1
37,203
-
-
37,203
Consulting services1
-
73,183
-
73,183
Initial licence fees2
2,811
-
-
2,811
Intersegment revenue
(555)
738
(183)
-
Intersegment royalties
(72,372)
(7,738)
80,110
-
Total revenue from contracts with customers
283,268
66,183
79,927
429,378
Other income
377
-
11,608
11,985
EXPENSES
Employee and share-based payments costs
(69,146)
(44,777)
(27,019)
(140,942)
Depreciation and amortisation
(51,699)
(541)
(1,262)
(53,502)
Variable costs
(44,412)
(3,059)
(8,423)
(55,894)
Corporate and other costs
(7,520)
(3,976)
(35,951)
(47,447)
Marketing costs
(13,099)
(7)
(618)
(13,724)
Total external expenses
(185,876)
(52,360)
(73,273)
(311,509)
Profit before tax
97,769
13,823
18,262
129,854
Income tax expense
(26,978)
Profit for the year
102,876
Total assets
636,737
Total liabilities
330,731
Total depreciation and amortisation
(53,502)
1 Recognised over time / as services are rendered.
2 Recognised at a point in time.
(c)
Other segment information
(i)
Segment revenue
2024
($’000)
2023
($’000)
Australia
415,682
350,364
New Zealand and Asia Pacific
54,298
47,185
APAC total
469,980
397,549
United Kingdom
36,556
31,829
Total segment revenues from sales to external customers
506,536
429,378
(ii)
Major customers
No Group customer contributes greater than 10% of external revenue.
4
Segment information (continued)
143
Making life simple for our community
5
Revenue
2024
($’000)
2023
($’000)
REVENUE FROM CONTRACTS WITH CUSTOMERS
SaaS fees1
407,386
316,181
Annual licence fees1
17,697
37,015
Consulting services1
80,520
73,183
Revenue ‑ SaaS and continuing business
505,603
426,379
Initial licence fees2
845
2,811
Annual licence fees associated with initial licence fees3
88
188
Revenue ‑ Legacy licence business
933
2,999
Total revenue from contracts with customers
506,536
429,378
1 Recognised over time / as services are rendered.
2 Recognised at a point in time.
3 This represents revenue on Annual Licence Fees recognised from the date the associated initial licence is delivered until the end of the first financial year post delivery.
2024
($’000)
2023
($’000)
OTHER INCOME
Foreign exchange gains / (losses)
41
21
Interest received
8,444
4,139
Reversal of contingent consideration (note 19)
-
7,378
Other
405
447
Total other income
8,890
11,985
Total revenue
515,426
441,363
Financial report
Notes to the consolidated
financial statements
6
Expenses
2024
($’000)
2023
($’000)
PROFIT BEFORE INCOME TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
DEPRECIATION
Plant and equipment
4,167
2,957
Total depreciation
4,167
2,957
AMORTISATION
Other intangible assets amortisation
2,061
1,933
Contract acquisition costs amortisation
11,025
8,574
Capitalised development amortisation
45,319
34,055
Amortisation of right‑of‑use assets
6,201
5,983
Total amortisation
64,606
50,545
Total depreciation and amortisation
68,773
53,502
Wages and salaries
111,455
98,840
Defined contribution plan expense
14,256
12,182
Payroll tax
11,429
9,562
Other employee benefits
2,678
1,079
Other
15,705
13,452
Total employee costs1
155,523
135,115
Share-based payments
6,521
3,907
Employee Share Purchase Plan
1,775
1,920
Share‑based payments
8,296
5,827
Profit and loss movement in expected credit loss
135
498
Foreign exchange (gain) / loss
804
(106)
(Gain) / loss on sale of property, plant and equipment
6
(3)
1 In addition to the employee benefits expense disclosed above, ‘Variable costs’ in the consolidated income statement includes $19.2m (2023: $17.9m) relating to employee costs. In
addition, ‘Contract acquisition costs’ in the consolidated statement of financial position includes $14.3 (2023: $17.1m) of sales commissions and ‘Capitalised development’ includes
$59.8m (2023: $52.7m) of current year employee benefits that have been capitalised.
145
Making life simple for our community
7
Income tax expenses
(a) Income tax expense
2024
($’000)
2023
($’000)
Current tax
34,328
26,549
Relating to origination and reversal of temporary differences
739
672
Adjustments for tax expense of prior periods
(207)
(243)
34,860
26,978
DEFERRED INCOME TAX EXPENSE / (REVENUE) INCLUDED IN INCOME TAX EXPENSE COMPRISES:
(Increase) / decrease in deferred tax assets (note 15)
(7,471)
(4,955)
Increase / (decrease) in deferred tax liabilities (note 15)
9,234
7,789
Adjustments for deferred taxes of prior periods
(1,024)
(2,162)
739
672
(b) Numerical reconciliation of income tax expense to prima facie tax payable
2024
($’000)
2023
($’000)
Profit from continuing operations before income tax expense
152,874
129,854
Tax at the Australian tax rate of 30% (2023: 30%)
45,862
38,956
Adjustments for current tax of prior periods
(207)
(243)
Research and development tax concession
(10,853)
(10,214)
Non‑taxable income
(485)
(1,584)
Expenditure not allowable for income tax purposes
832
218
Current year tax losses not recognised
13
16
Tax rate variance in subsidiaries
(302)
(859)
Change in foreign tax rate
-
688
Income tax expense
34,860
26,978
(c)
Amounts recognised directly in equity
2024
($’000)
2023
($’000)
Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss or other
comprehensive income but directly debited or credited to equity:
Net deferred tax debited / (credited) directly to equity
(3,583)
(3,156)
8
Current assets ‑ Cash and cash equivalents
2024
($’000)
2023
($’000)
Cash and cash equivalents
55,208
198,265
Cash at bank earns interest at floating rates based on daily bank deposit rates (ranging from 0.0% to 4.70%). Included in the Cash and cash
equivalents amount are term deposits invested for periods ranging from one day to three months (earning interest from 4.85% to 5.45%). Given
the short-term nature of these term deposit accounts, the fair value of cash assets at 30 September are their carrying values.
Financial report
Notes to the consolidated
financial statements
9
Current assets – Financial assets
2024
($’000)
2023
($’000)
Term deposits
223,481
25,000
Term deposits with original maturities over three months, but less than twelve months at balance sheet date, are classified as financial
assets earning interest ranging from 4.85% to 5.75% (2023: 5.02%).
10 Current assets – Trade and other receivables
2024
($’000)
2023
($’000)
Trade and other receivables
67,343
62,764
Allowance for expected credit losses
(2,460)
(1,849)
Sundry receivables
2,663
1,501
67,546
62,416
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 receivable balance are debtors with a carrying amount of $1.9m (2023: $2.8m) which are past due at
the reporting date for which the consolidated entity has not provided a specific allowance as there has not been a significant change
in credit quality. The Company believes that the amounts are still recoverable. The Company does not hold any collateral over these
balances, however is able to withdraw future support and software licence use rights if concerns arise relating to the recoverability of an
outstanding customer balance.
(a) Allowance for expected credit losses
Movements in the provision for impairment of receivables are as follows:
2024
($’000)
2023
($’000)
Opening balance ‑ 1 October
1,849
3,172
Increase/(decrease) in expected credit loss allowance
1,700
176
Amounts reversed/written off
(1,089)
(1,499)
Closing balance ‑ 30 September
2,460
1,849
In determining the recoverability of a trade and other receivable the Group considers any change in the credit quality of the trade
receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the
customer base being large and unrelated.
Age
Trade
Debtors
2024
($’000)
Expected
credit loss
2024
($’000)
Trade
Debtors
2023
($’000)
Expected
credit loss
2023
($’000)
0 – 30 days
63,851
(858)
58,751
(664)
31 – 60 days
1,643
(37)
1,687
(175)
61 – 90 days
428
(349)
360
(26)
91+ days
1,421
(1,216)
1,966
(984)
67,343
(2,460)
62,764
(1,849)
147
Making life simple for our community
11
Contract assets
2024
($’000)
2023
($’000)
Contract assets ‑ current
21,021
23,134
Contract assets ‑ non‑current
2,556
3,618
Allowance for expected credit losses
(203)
(243)
23,374
26,509
The above contract asset balance represents revenue recognised for contracts with customers which has not been invoiced at the end
of the financial year, in accordance with customer contracts.
Expected credit loss for contract assets
Movements in the provision for impairment of contract assets are as follows:
2024
($’000)
2023
($’000)
Opening balance - 1 October
243
241
Increase/(decrease) in expected credit loss allowance recognised in profit and loss during the year
(40)
2
Closing balance - 30 September
203
243
12
Current assets – Other current assets
2024
($’000)
2023
($’000)
Refundable deposits
1,457
1,127
1,457
1,127
Financial report
Notes to the consolidated
financial statements
13 Non‑current assets – Property, plant and equipment
Office furniture
& equipment
($’000)
Other
($’000)
Total
($’000)
YEAR ENDED 30 SEPTEMBER 2024
Opening net book amount
13,295
20
13,315
Additions
6,322
-
6,322
Disposals
(10)
(1)
(11)
Depreciation charge
(4,160)
(7)
(4,167)
Make good movement
(15)
-
(15)
Exchange difference
76
-
76
Closing net book amount
15,508
12
15,520
AT 30 SEPTEMBER 2024
Cost
56,978
4,787
61,765
Accumulated depreciation
(41,470)
(4,775)
(46,245)
Net book amount
15,508
12
15,520
YEAR ENDED 30 SEPTEMBER 2023
Opening net book amount
8,501
4
8,505
Additions
7,752
18
7,770
Disposals
(3)
-
(3)
Depreciation charge
(2,955)
(2)
(2,957)
Make good movement
(17)
-
(17)
Exchange difference
17
-
17
Closing net book amount
13,295
20
13,315
AT 30 SEPTEMBER 2023
Cost
50,975
4,789
55,764
Accumulated depreciation
(37,680)
(4,769)
(42,449)
Net book amount
13,295
20
13,315
149
Making life simple for our community
14 Non-current assets – Intangible assets
Goodwill
($’000)
Intellectual
property/
source code
($’000)
Customer
contracts
($’000)
Contract
acquisition
costs1
($’000)
Software
under
development
($’000)
Software‑
in use
($’000)
Total
($’000)
YEAR ENDED 30 SEPTEMBER 2024
Opening net book amount
47,951
6,123
5,436
32,803
43,127
105,491
240,931
Additions
-
209
-
16,388
69,720
-
86,317
Transfers to software ‑ in use
-
-
-
-
(93,108)
93,108
-
Amortisation charge
-
(609)
(1,452)
(11,025)
-
(45,319)
(58,405)
Derecognition
-
-
-
-
-
-
-
Exchange difference
261
(4)
80
18
5
11
371
Closing net book amount
48,212
5,719
4,064
38,184
19,744
153,291
269,214
AT 30 SEPTEMBER 2024
Cost
54,965
16,154
7,706
72,753
19,744
281,157
452,479
Accumulated amortisation
-
(6,842)
(3,642)
(34,569)
-
(122,844)
(167,897)
Accumulated impairment
(6,753)
(3,593)
-
-
-
(5,022)
(15,368)
Net book amount
48,212
5,719
4,064
38,184
19,744
153,291
269,214
YEAR ENDED 30 SEPTEMBER 2023
Opening net book amount
46,580
6,792
6,080
20,378
33,947
92,962
206,739
Additions
-
987
-
20,764
60,605
-
82,356
Transfers to software ‑ in use
-
-
-
-
(51,574)
51,574
-
Amortisation charge
-
(802)
(1,131)
(8,574)
-
(34,055)
(44,562)
Derecognition
-
(916)
-
-
-
(5,022)
(5,938)
Exchange difference
1,371
62
487
235
149
32
2,336
Closing net book amount
47,951
6,123
5,436
32,803
43,127
105,491
240,931
AT 30 SEPTEMBER 2023
Cost
54,704
15,949
7,626
56,347
43,127
188,038
365,791
Accumulated amortisation
-
(6,233)
(2,190)
(23,544)
-
(77,525)
(109,492)
Accumulated impairment
(6,753)
(3,593)
-
-
-
(5,022)
(15,368)
Net book amount
47,951
6,123
5,436
32,803
43,127
105,491
240,931
1 Balance of contract acquisition costs is split between current portion of $11.8m and non-current portion of $26.4m (2023: current $9.6m; non-current $23.2m). Assets with indefinite life
other than goodwill are within Intellectual property/source code above.
Financial report
Notes to the consolidated
financial statements
14 Non-current assets – Intangible assets (continued)
(a) Impairment tests for goodwill
Goodwill and indefinite life intangibles are allocated to the Group's Software and Consulting cash-generating units (CGUs) which are
also operating and reportable segments for impairment testing purposes.
A segment-level summary of the goodwill and indefinite life intangible assets allocation is presented below.
Software
($’000)
Consulting
($’000)
Corporate
($’000)
Total
($’000)
2024
Goodwill
38,604
9,608
-
48,212
Indefinite life intangible assets
1,362
660
-
2,022
39,966
10,268
-
50,234
2023
Goodwill
38,343
9,608
-
47,951
Indefinite life intangible assets
1,362
660
-
2,022
39,705
10,268
-
49,973
The recoverable amounts of each CGU have been determined based on cash flow projections based on financial budgets approved by
senior management covering a five-year period, with a value-in-use basis being used for all valuations.
The following table sets out the key assumptions for each cash-generating unit:
Software
Consulting
2024
Pre‑tax nominal discount rate applied to the cash flow projections
11.9%
11.2%
Terminal growth rate
3%
3%
2023
Pre‑tax nominal discount rate applied to the cash flow projections
11.5%
11.6%
Terminal growth rate
3%
3%
151
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15 Non‑current assets – Deferred tax
(a) Deferred tax assets
2024
($’000)
2023
($’000)
THE BALANCE COMPRISES TEMPORARY DIFFERENCES ATTRIBUTABLE TO:
Employee benefits
6,260
5,434
Other provisions
2,083
2,042
Accrued expenses
1,347
981
Intangible assets
2,144
477
Copyright ‑ software
27
31
Lease liability (net)
2,308
2,315
Employee share trust
6,233
4,738
Deferred revenue
66,498
58,259
Other
1,626
3,195
88,526
77,472
Set‑off of deferred tax liabilities pursuant to set‑off provisions
(65,324)
(56,090)
Net deferred tax assets
23,202
21,382
2024
($’000)
2023
($’000)
MOVEMENTS:
Opening balance at 1 October
77,472
69,361
Credited / (charged) to the consolidated income statement
7,471
4,955
Credited / (charged) to equity
3,583
3,156
Offset from deferred tax liabilities
(65,324)
(56,090)
Closing balance at 30 September
23,202
21,382
(b) Deferred tax liabilities
2024
($’000)
2023
($’000)
THE BALANCE COMPRISES TEMPORARY DIFFERENCES ATTRIBUTABLE TO
Contract assets
(4,527)
(4,412)
Accelerated depreciation for tax purposes
(837)
(1,491)
Prepayments
(47)
(44)
Capitalised development
(51,117)
(42,685)
Contract acquisition costs
(8,796)
(7,458)
Total deferred tax liabilities
(65,324)
(56,090)
Set‑off of deferred tax liabilities pursuant to set‑off provisions
65,324
56,090
Net deferred tax liabilities
-
-
Financial report
Notes to the consolidated
financial statements
15 Non‑current assets – Deferred tax (continued)
2024
($’000)
2023
($’000)
MOVEMENTS
Opening balance at 1 October
(56,090)
(48,301)
Charged/(credited) to the Consolidated income statement (note 7)
(9,234)
(7,789)
Offset to deferred tax assets
65,324
56,090
Closing balance at 30 September
-
-
16 Current liabilities – Trade and other payables
2024
($’000)
2023
($’000)
Trade payables
22,708
39,733
Sundry creditors
10,373
9,340
Directors' fees
91
174
33,172
49,247
Trade payables and sundry creditors are non-interest bearing and are normally settled on 30 day terms. No interest is payable on
outstanding balances. The Group has financial risk management policies in place to ensure that all payables are paid within the
credit timeframe.
17
Current liabilities – Provisions
2024
($’000)
2023
($’000)
Other provisions1
5,221
5,302
Annual leave
9,277
7,743
Long service leave
9,196
8,232
23,694
21,277
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 retrial began 30 September 2024. As at the date of the release of this report the trial has been adjourned. The trial is
expected to continue in FY25. The Group has retained the full value of the provision at 30 September 2023 and 2024 ($5.2m) based on management’s best estimate pending the
results of the retrial.
18 Current liabilities – Deferred Revenue
2024
($’000)
2023
($’000)
Carrying amount at 1 October
214,495
184,008
Carrying amount at 30 September
246,335
214,495
Revenue recognised from the opening balance
211,839
182,471
Deferred Revenue represents payments received or receivable in advance from customers for SaaS Fees and Annual Licence Fees which
will be recognised as revenue in future periods, generally over the next 12 months. These amounts are classified as a contract liability
under AASB 15. These amounts do not result in a future cash outflow.
153
Making life simple for our community
19 Non‑current liabilities – Provisions
2024
($’000)
2023
($’000)
Long service leave
2,554
2,359
Make good provision
225
206
2,779
2,565
(a) Movements in provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
The non-current provisions have been discounted using a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability.
Annual
leave
($’000)
Long service
leave
($’000)
Make
good
($’000)
Legal
provision
($’000)
Other
($’000)
Total
($’000)
2024
Carrying amount at 1 October 2023
7,743
10,591
206
5,221
81
23,842
Additional provisions recognised
4,928
2,154
19
-
-
7,101
Release of provision
-
-
-
-
-
-
Amount used during the year or foreign exchange
movement
(3,394)
(995)
-
-
(81)
(4,470)
Carrying amount at 30 September 2024
9,277
11,750
225
5,221
-
26,473
20 Leases
Right‑of‑use assets
Property
($’000)
Equipment
($’000)
Total
($’000)
YEAR ENDED 30 SEPTEMBER 2024
Opening net book amount
22,486
155
22,641
Additions
-
55
55
Modifications during the year
36,402
-
36,402
Disposals
(1,398)
-
(1,398)
Depreciation charge
(6,161)
(40)
(6,201)
Exchange difference
146
-
146
Closing net book amount
51,475
170
51,645
AT 30 SEPTEMBER 2024
Cost
78,660
421
79,081
Accumulated depreciation
(27,185)
(251)
(27,436)
Net book amount
51,475
170
51,645
Financial report
Notes to the consolidated
financial statements
20 Leases (continued)
Lease liability
Property
($’000)
Equipment
($’000)
Total
($’000)
YEAR ENDED 30 SEPTEMBER 2024
Opening liability
32,988
168
33,156
New leases entered into during the year
-
55
55
Disposals
(2,383)
-
(2,383)
Modifications during the year
36,312
-
36,312
Payments
(10,218)
(46)
(10,264)
Interest expense
2,565
9
2,574
Exchange difference
217
-
217
Closing liability1
59,481
186
59,667
1 Of the closing amount, $7.1m is classified as current in the Consolidated statement of financial position.
The following are amounts recognised in profit or loss under AASB 16:
2024
($’000)
2023
($’000)
Amortisation on right‑of‑use assets
6,201
5,983
Interest expense on lease liabilities
2,574
2,063
Total amount recognised in profit or loss
8,775
8,046
Cashflow from leases
2024
($’000)
2023
($’000)
Total cash outflow as a lessee
10,264
9,820
10,264
9,820
155
Making life simple for our community
Right‑of‑use assets
Property
($’000)
Equipment
($’000)
Total
($’000)
YEAR ENDED 30 SEPTEMBER 2023
Opening net book amount
23,071
39
23,110
Additions
1,912
167
2,079
Modifications during the year
2,809
-
2,809
Disposals
-
-
-
Depreciation charge
(5,932)
(51)
(5,983)
Exchange difference
626
-
626
Closing net book amount
22,486
155
22,641
AT 30 SEPTEMBER 2023
Cost
43,510
367
43,877
Accumulated depreciation
(21,024)
(212)
(21,236)
Net book amount
22,486
155
22,641
Lease liability
Property
($’000)
Equipment
($’000)
Total
($’000)
YEAR ENDED 30 SEPTEMBER 2023
Opening liability
35,253
51
35,304
New leases entered into during the year
1,879
167
2,046
Modifications during the year
2,803
-
2,803
Payments
(9,765)
(55)
(9,820)
Interest expense
2,058
5
2,063
Exchange difference
760
-
760
Closing liability
32,988
168
33,156
Financial report
Notes to the consolidated
financial statements
21
Contributed Equity
(a) Share capital
2024
Shares
2023
Shares
2024
($’000)
2023
($’000)
ORDINARY SHARES
Fully paid
326,076,272
324,674,728
77,321
67,466
(b) Movements in ordinary share capital
Date
Details
Number
of shares
($’000)
1‑Oct‑23
Opening balance
324,674,728
67,466
Exercise of options
1,193,476
7,836
Share grant to employees
215,712
2,019
Movement in treasury shares
(7,644)
-
30‑Sep‑24
Closing balance
326,076,272
77,321
1‑Oct‑22
Opening balance
323,365,816
57,635
Exercise of options
1,303,806
8,139
Share grant to employees
108,912
1,692
Movement in treasury shares
(103,806)
-
30‑Sep‑23
Closing balance
324,674,728
67,466
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 31.
22 Reserves
(a) Other reserves
2024
($’000)
2023
($’000)
Share option reserve
58,825
48,965
Foreign currency translation
2,635
2,262
Dividend reserve
56,639
48,377
118,099
99,604
(b) Nature and purpose of other reserves
(i)
Share option reserve
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 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
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23 Dividends
(a) Ordinary shares
2024
($’000)
2023
($’000)
Final dividend for the year ended 30 September 2023 of 11.9 Cents (2022: 10.82 Cents) per fully paid share paid in
December 2023 (2022: December 2022)
60% franked (2022: 60%) based on tax paid at 30%
38,588
35,119
Special dividend for the year ended 30 September 2023 of 3 Cents (2022: 2 Cents) per fully paid share paid in
December 2023 (2022: December 2022)
60% franked (2022: 60%) based on tax paid at 30%
9,728
6,491
Interim dividend for the year ended 30 September 2024 of 5.08 Cents (2023: 4.62 Cents) per fully paid share paid
in June 2024 (2023: June 2023)
65% franked (2023: 60%) based on tax paid at 30%
16,530
14,995
Total dividends paid
64,846
56,605
(b) Dividends not recognised at the end of the reporting period
Final
2024
($’000)
2023
($’000)
In addition to the above dividends, since year end the directors have recommended the payment of a final
dividend of 17.37 cents per fully paid ordinary share (2023: 11.9 cents) 65% franked (2023: 60%) based on tax paid at
30% (2023: 30%).
56,639
38,637
The directors have not recommended the payment of a special dividend in the current year.
-
9,740
The aggregate amount of proposed dividend expected to be paid out of retained earnings, but not recognised as
a liability at year end
56,639
48,377
(c)
Franked Dividends
The franked portions of the final dividends recommended after 30 September 2024 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 2024.
2024
($’000)
2023
($’000)
Franking account balance as at the end of the financial year at 30% (2023: 30%)
12,092
402
Franking credits that will arise from the payments of income tax payable as at the end of the financial year
12,454
6,712
Franking credits available for subsequent financial years based on a tax rate of 30%
24,546
7,114
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 $15,778 (2023: $12,440).
Financial report
Notes to the consolidated
financial statements
24 Directors and key management personnel disclosures
(a) Key management personnel disclosures
2024
($)
2023
($)
Short‑term employee benefits
6,012,688
5,339,272
Deferred STI
496,724
305,731
Share‑based payments
2,256,488
1,229,551
8,765,900
6,874,554
(b) Equity instrument disclosures relating to key management personnel
Details of options provided as remuneration to KMP and shares issued on the exercise of such, together with terms and conditions can
be found in the remuneration report.
25 Remuneration of auditors
During the year, the following fees were paid or payable for services provided by the auditor of the consolidated entity:
(a) Ernst and Young (Australia)
2024
($)
2023
($)
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
822,497
772,356
Fees for other assurance and agreed-upon-procedure services
269,860
223,300
Fees for other services1
103,428
948,484
Total remuneration of Ernst & Young Australia
1,195,785
1,944,140
1 Other services include $103,428 (2023: $301,734) in relation to taxation advice and nil (2023 $646,750) in relation to acquisition due diligence services for an acquisition target that
the Company did not ultimately pursue.
26 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 2024, the Group had $3,788,125 (2023: $3,833,314) in outstanding bank guarantees issued to Technology One. The total
available guarantee facility is $8,300,000 (2023: $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.
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27 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 28.
28 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):
Body corporate,
partnership
or trust
Country of
incorporation
Class of
shares
Equity holding
Tax residency
2024
(%)
2023
(%)
Australian
or foreign
Foreign
jurisdiction
Technology One Limited
Body corporate
Australia
Ordinary
100
100
Australian
N/A
TechnologyOne Corporation Sdn Bhd
Body corporate
Malaysia
Ordinary
100
100
Foreign
Malaysia
TechnologyOne New Zealand Ltd
Body corporate
New Zealand
Ordinary
100
100
Foreign
New Zealand
TechnologyOne UK Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Avand Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Desktop Mapping Systems Pty Ltd (DMS)
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Digital Mapping Solutions NZ Limited (DMS)
Body corporate
New Zealand
Ordinary
100
100
Foreign
New Zealand
Boldridge Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Icon Strategic Solutions Pty Ltd
Body corporate
Australia
Ordinary
100
`100
Australian
N/A
Jeff Roorda and Associates Pty Ltd (JRA)
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Scientia Resource Management Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Cyon Knowledge Computing Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Scientia Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Scientia P3M
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Cyon Knowledge Computing SDN BHD
Body corporate
Malaysia
Ordinary
100
100
Foreign
Malaysia
Scientia GmbH
Body corporate
Germany
Ordinary
100
100
Foreign
Germany
Cyon S.E Asia PTE Limited
Body corporate
Singapore
Ordinary
100
100
Foreign
Singapore
Procyon Research Ltd
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
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
Financial report
Notes to the consolidated
financial statements
29 Reconciliation of profit after income tax to net cash inflow from
operating activities
2024
($’000)
2023
($’000)
Profit for the year
118,014
102,876
Depreciation and amortisation
68,773
53,502
Non-cash employee benefits expense - share-based payments
8,296
5,827
Accrued interest
(1,450)
602
Other non-cash
3,337
(608)
Net (gain) / loss on sale of non-current assets
-
-
Movement in ECL through profit or loss
135
498
(increase) / decrease in trade and other receivables and contract assets
(1,995)
(5,237)
(increase) / decrease in prepayments and other current assets
(1,972)
(5,901)
(increase) / decrease in tax assets and liabilities
4,132
10,544
Increase / (decrease) in trade creditors
(16,288)
2,252
Increase / (decrease) in provisions
2,498
965
Increase / (decrease) in lease liabilities
(2,574)
(2,148)
Increase / (decrease) in deferred revenue
31,840
30,487
Net cash inflow / (outflow) from operating activities
212,746
193,659
161
Making life simple for our community
30 Earnings per share
(a) Basic earnings per share
2024
2023
Basic earnings per share (cents per share)
36.24
31.71
Diluted earnings per share (cents per share)
36.03
31.54
Profit used for calculating basic and diluted earnings per share ($’000)
118,014
102,876
(b) Weighted average number of shares used as denominator
2024
(number)
2023
(number)
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share
325,655,834
324,422,822
Adjustments for calculation of diluted earnings per share:
Options
1,913,078
1,799,585
Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating
diluted earnings per share
327,568,912
326,222,407
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.
31
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, 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.
Financial report
Notes to the consolidated
financial statements
31
Share‑based payments (continued)
Issue
date
Expiry
date
Exercise
price
Balance at
start of the period
Number
Issued during
the year
Number
Exercised during
the period
Number
Forfeited during
the period
Number
Balance at
end of the period
Number
Vested & exercisable
at end of the period
Number
2024
21/02/2024
17/11/2031
15.57
-
327,891
-
-
327,891
-
11/03/2024
17/11/2031
11.67
-
11,018
-
(2,543)
8,475
-
2/10/2023
30/11/2029
15.57
-
161,657
-
-
161,657
-
2/10/2023
30/11/2029
15.57
-
189,473
-
-
189,473
-
2/10/2023
30/11/2030
15.57
-
167,580
-
-
167,580
-
2/10/2023
30/11/2031
15.57
-
112,360
-
-
112,360
-
2/10/2023
17/11/2031
11.67
-
761,828
-
(156,502)
605,326
-
2/10/2023
19/11/2031
11.67
-
153,510
-
-
153,510
-
25/11/2022
30/11/2030
9.46
658,239
-
-
(241,875)
416,364
-
25/11/2022
30/11/2029
9.46
51,653
-
-
(51,653)
-
-
25/11/2022
30/11/2028
9.46
2,189
-
-
-
2,189
2,189
25/11/2022
30/11/2029
9.46
134,302
-
-
-
134,302
-
1/10/2022
30/11/2030
11.03
275,668
-
-
-
275,668
-
8/07/2022
30/11/2031
7.78
366,278
-
-
-
366,278
-
23/02/2022
30/11/2031
10.37
1,195,165
-
-
-
1,195,165
-
26/11/2021
30/11/2028
5.89
37,593
-
(37,593)
-
-
-
26/11/2021
30/11/2029
9.23
436,447
-
-
(44,338)
392,109
-
26/11/2021
30/11/2029
12.31
307,489
-
-
-
307,489
-
30/03/2021
30/11/2028
5.89
11,064
-
(11,064)
-
-
-
22/01/2021
30/11/2028
5.89
412,014
-
(358,825)
-
53,189
53,189
22/01/2021
30/11/2028
7.85
540,801
-
(540,801)
-
-
-
1/07/2020
1/10/2027
1.89
50,000
-
(50,000)
-
-
-
1/10/2019
1/10/2027
7.39
108,902
-
(108,902)
-
-
-
1/10/2019
1/10/2027
5.54
73,902
-
(36,291)
-
37,611
37,611
1/10/2018
1/10/2026
4.11
24,785
-
-
-
24,785
24,785
1/10/2018
1/10/2025
4.12
16,500
-
-
-
16,500
16,500
1/10/2018
1/07/2025
1.89
50,000
-
(50,000)
-
-
-
4,752,991
1,885,317
(1,193,476)
(496,911)
4,947,921
134,274
Weighted average exercise price
$8.97
$13.65
$6.57
$10.15
$11.22
$5.35
163
Making life simple for our community
31
Share‑based payments (continued)
Issue
date
Expiry
date
Exercise
price
Balance at
start of the period
Number
Issued during
the year
Number
Exercised during
the period
Number
Forfeited during
the period
Number
Balance at
end of the period
Number
Vested & exercisable
at end of the period
Number
2023
25/11/2022
30/11/2030
9.4600
-
676,902
-
(18,663)
658,239
-
25/11/2022
30/11/2029
9.4600
-
51,653
-
-
51,653
-
25/11/2022
30/11/2028
9.4600
-
2,189
-
-
2,189
-
25/11/2022
30/11/2029
9.4600
-
134,302
-
-
134,302
-
1/10/2022
30/11/2030
11.0300
-
365,964
-
(90,296)
275,668
-
8/07/2022
30/11/2031
7.7800
468,022
-
-
(101,744)
366,278
-
23/02/2022
30/11/2031
10.3700
1,400,926
-
-
(205,761)
1,195,165
-
26/11/2021
30/11/2028
5.8850
37,593
-
-
-
37,593
-
26/11/2021
30/11/2027
9.2300
34,740
-
(34,740)
-
-
-
26/11/2021
30/11/2029
9.2300
510,401
-
-
(73,954)
436,447
-
26/11/2021
30/11/2029
12.3100
408,208
-
-
(100,719)
307,489
-
30/03/2021
30/11/2028
5.8850
11,064
-
-
-
11,064
-
22/01/2021
30/11/2028
5.8850
480,243
-
-
(68,229)
412,014
-
22/01/2021
30/11/2028
7.8467
540,801
-
-
-
540,801
-
22/01/2021
30/11/2027
5.8850
109,284
-
(109,284)
-
-
-
1/07/2020
1/10/2027
1.8914
50,000
-
-
-
50,000
50,000
1/10/2019
1/10/2027
7.3854
563,020
-
(454,118)
-
108,902
108,902
1/10/2019
1/10/2027
5.5391
698,919
-
(625,017)
-
73,902
73,902
1/10/2018
1/10/2026
4.1122
51,913
-
(27,128)
-
24,785
24,785
1/10/2018
1/10/2025
4.1166
20,000
-
(3,500)
-
16,500
16,500
1/10/2018
1/07/2025
1.8914
50,000
-
-
-
50,000
50,000
1/10/2017
1/10/2025
5.1456
15,989
-
(15,989)
-
-
-
1/10/2017
1/10/2025
5.7474
11,177
-
(11,177)
-
-
-
1/07/2018
1/10/2026
4.1122
22,853
-
(22,853)
-
-
-
5,485,153
1,231,010
(1,303,806)
(659,366)
4,752,991
324,089
Weighted average exercise price
$8.20
$9.93
$6.24
$9.74
$8.97
$4.87
Financial report
Notes to the consolidated
financial statements
31
Share‑based payments (continued)
A total of 1,885,317 options (2023: 1,231,010) 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 2024 was $6.57
(2023: $6.24).
The weighted average remaining contractual life of share options outstanding at the end of the period was 6.4 years (2023: 6.6 years).
(b) Fair value of options granted
The fair value of the equity-settled options and executive performance rights 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 $2.19 and $5.90 (2023: $2.32 and $5.98).
The model inputs for options granted during the year ended 30 September 2024 included:
(i)
Dividend yield 1.00%-1.35% (2023: 1.35%)
(ii)
Volatility 26.5%-28.1% (2023: 33.9%)
(iii)
Risk-free interest rate 3.62%-4.14% (2023: 3.61%)
(iv)
Expected life of option 1.5-3.5 years (2023: 3.3 years)
(v)
Option exercise price between $11.67 and $15.57 (2023: $9.46 and $11.03)
(vi)
Weighted average share price at grant date was $15.63 (2023: $12.64)
(c)
Executive performance rights
Please refer to section 4 of the remuneration report for further information.
(d) Expenses arising from share‑based payment transactions
Total expenses arising from share-based payment transactions recognised during the year as part of employee benefit expenses were as follows:
Options issued under employee option plan:
2024
($’000)
2023
($’000)
Vested or yet to vest
7,029
4,085
Forfeited
(508)
(178)
Total share‑based payment expense
6,521
3,907
(e) Employee share plan
During the current year, the Group maintained its 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)
is 18 years or older, and
(b)
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 (currently 12-month period) with the contribution capped at $25,000 per person. This equates to a monthly contribution
cap of $2,083. This post-tax deduction is used to purchase TechnologyOne shares at market value at the end of each contribution month.
Employees who participate in the plan will become entitled to one matched share for every two shares they acquire under the plan subject to
vesting conditions.
The vesting condition attached to the bonus shares is that the employee must remain employed for one month after the contribution period
ends. A participant who satisfies the vesting conditions will become entitled to the matched shares on the last day of the vesting period.
The fair value of the matched share is estimated at the measurement date using Black-Scholes option pricing model and is recognised over
the period that the matched share vests. FY23 was the first year that employees were offered the employee share plan. The contribution
period for the FY24 offering was 1 July 23 to 30 June 2024, with the vesting date being 31 July 24. In future periods, the contribution period will
align with the Group’s financial year.
165
Making life simple for our community
32 Parent entity financial information
(a) Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
2024
($’000)
2023
($’000)
BALANCE SHEET
Current assets
329,926
313,297
Non‑current assets
348,819
288,687
Total assets
678,745
601,984
Current liabilities
247,589
270,830
Non‑current liabilities
51,051
19,254
Total liabilities
298,640
290,084
SHAREHOLDERS' EQUITY
Contributed equity
77,321
67,466
Dividend reserve
56,639
48,377
Share option reserve
58,825
48,965
Retaining earnings
187,320
147,092
380,105
311,900
Profit or loss before tax for the year
146,898
119,914
Total comprehensive income
146,898
119,914
At 30 September 2024, the statement of financial position shows a current liability balance of $248m (30 September 2023: $271m)
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 2024, the Group had $3,788,125 (2023: $3,833,314) in outstanding bank performance guarantees. The total available
guarantee facility is $8,300,000 (2023: $8,300,000).
The parent entity, Technology One Limited, provides ongoing financial support to its subsidiaries in their operations.
(c)
Contingent liabilities of the parent entity
At 30 September 2024, the parent entity had no contingent liabilities.
33 Events after the reporting period
On 1 November 2024, the Group acquired 100% of the issued shares and voting rights of CourseLoop Pty Ltd for $60m in cash and options.
This acquisition forms part of the Group's strategic focus to deliver the deepest functionality for Higher Education. Due to the proximity of the
acquisition date to the release of the annual report, the Group has yet to finalise the Purchase Price Allocation for accounting and therefore
this has not been disclosed.
On 18 November 2024, the Directors of Technology One Limited determined a final dividend on ordinary shares in respect of the 2024 financial
year. The total amount of the dividend is $56,639,448 and is 65% 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.
Financial report
Consolidated entity disclosure
statement
In accordance with the requirements of Subsection 295(3A) of the Australian Corporations Act 2001 (Cth), set out below is the
consolidated entity disclosure statement disclosing information, including tax residency in respect of Technology One Limited and
entities it controlled at 30 September 2024.
Body corporate,
partnership
or trust
Country of
incorporation
Class of
shares
Equity holding
Tax residency
2024
(%)
2023
(%)
Australian
or foreign
Foreign
jurisdiction
Technology One Limited
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Technology One Corporation Sdn Bhd
Body corporate
Malaysia
Ordinary
100
100
Foreign
Malaysia
Technology One New Zealand Ltd
Body corporate
New Zealand
Ordinary
100
100
Foreign
New Zealand
Technology One UK Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Avand Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Desktop Mapping Systems Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Digital Mapping Solutions NZ Limited
Body corporate
New Zealand
Ordinary
100
100
Foreign
New Zealand
Boldridge Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Icon Strategic Solutions Pty Ltd
Body corporate
Australia
Ordinary
100
`100
Australian
N/A
Jeff Roorda and Associates Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Scientia Resource Management Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Cyon Knowledge Computing Pty Ltd
Body corporate
Australia
Ordinary
100
100
Australian
N/A
Scientia Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Scientia P3M Limited
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
Cyon Knowledge Computing Sdn Bhd
Body corporate
Malaysia
Ordinary
100
100
Foreign
Malaysia
Scientia Gmbh
Body corporate
Germany
Ordinary
100
100
Foreign
Germany
Cyon S.E Asia PTE Limited
Body corporate
Singapore
Ordinary
100
100
Foreign
Singapore
Procyon Research Ltd
Body corporate
United Kingdom
Ordinary
100
100
Foreign
United Kingdom
167
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Directors' Declaration
Technology One Limited Directors' declaration 30 September 2024
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 165 are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the consolidated entity's financial position as at 30 September 2024 and of its performance for
the year ended on that date; and
(ii)
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)
the consolidated entity disclosure statement required by section 295(3A) of the Corporations Act is true and correct; and
(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
(e)
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 2024.
On behalf of the Board of Directors
Pat O’Sullivan
Chair
Brisbane
18 November 2024
Financial report
Independent Auditor's Report
Independent Auditor's Report
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent auditor’s report to the members of 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 2024, consolidated income statement, 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 material accounting policy information, the
consolidated entity disclosure statementand 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
2024 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.
169
Making life simple for our community
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Page 2
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 18.
Our audit procedures included the following:
►
We obtained an understanding of the design of
controls over the revenue recognition process.
►
For customer contracts related to SaaS fees,
annual licence fees, and consulting fees, we
assessed whether the revenue has been
recorded appropriately, by:
►
Performing a correlation between revenue,
contract assets, contract liabilities,
receivables and cash.
►
Testing a sample of revenue transactions
back to contract, invoice, cash receipt and
evidence the performance obligation has
been satisfied to ensure the amount and
timing of revenue recognised is appropriate.
►
Testing a sample of consulting services
contracts, assessing consulting days
delivered agree to employee timesheet and
the fee rates applied to the days delivered
agree to the signed contract.
►
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.
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
applied in:
We performed the following procedures in respect of
the development costs capitalised:
►
Assessed the nature of the Group’s projects and
the policy for capitalisation of software
development costs for compliance with the
criteria in AASB 138 Intangible Assets.
Financial report
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Why significant
How our audit addressed the key audit matter
►
Assessing 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;
►
Assessing the useful lives of assets and the
timing of amortisation; and
►
Assessing of future economic benefits and
indications of impairment of the capitalised
software development costs.
►
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.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2024 annual report, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
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Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
►
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
►
The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
►
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
►
The consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
►
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
►
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
►
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
Financial report
Independent Auditor's Report
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events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
►
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
►
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 87 to 108 of the directors’ report for the
year ended 30 September 2024.
In our opinion, the Remuneration Report of Technology One Limited for the year ended 30 September
2024, complies with section 300A of the Corporations Act 2001.
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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
Partner
Sydney
18 November 2024
Financial report
The shareholder information set out below was applicable as at 10 October 2024.
(a) Distribution of Equity Securities
Number
of Shares
Number of
Shareholders
Percentage of
Shareholders
1‑1,000
9,590
54.93%
1,001 – 5,000
5,507
31.54%
5,001 – 10,000
1,217
6.97%
10,001 – 100,000
1,080
6.19%
100,001 and over
64
0.37%
There were 195 holders of less than a marketable parcel of ordinary shares (1.12% of shareholders).
(b) Equity Security Holders
Twenty largest quoted equity security holders
Name
Number
Held
Percentage of
Issued Shares
JL Mactaggart Holdings Pty Ltd1
22,618,454
6.94%
Hyperion Asset Management (Brisbane)
17,291,424
5.30%
State Street Global Advisors (Sydney)
13,422,450
4.12%
Masterbah Pty Ltd
11,372,400
3.49%
Vanguard Group (Philadelphia)
10,913,454
3.35%
Blackrock Investment Management (San Francisco)
8,039,901
2.47%
Macquarie Asset Management (Sydney)
7,580,297
2.32%
First Sentier Investors (Sydney)
7,272,426
2.23%
Pendal Group (Sydney)
7,241,265
2.22%
Argo Investments (Sydney)
6,800,000
2.09%
Dimensional Fund Advisors (Sydney)
5,795,855
1.78%
Alphinity Investment Mgt (Sydney)
5,619,705
1.72%
Vanguard Investments (Melbourne)
5,429,623
1.67%
Selector Funds Mgt (Sydney)
5,325,974
1.63%
Blackrock Investment Mgt (Australia)
5,130,579
1.57%
Plato Investment Mgt (Sydney)
4,850,419
1.49%
Acadian Asset Mgt (Boston)
4,197,435
1.29%
Wasatch Global Investors (Salt Lake City)
4,155,117
1.27%
IFM Investors (Melbourne)
3,914,995
1.20%
William Blair Investment Mgt (Chicago)
3,889,246
1.19%
1 Substantial holder (including associate holdings) in Technology One Limited.
(c)
Unquoted Securities
Details
Number
on Issue
Number of
Holders
TNEAI (Options)
4,947,921
108
TNEAJ (Performance Rights)
135,293
50
(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.
Shareholder information
175
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Corporate directory -
Technology One Limited
Board of Directors
Pat O'Sullivan
Edward Chung
Richard Anstey
Jane Andrews
Sharon Doyle
Cliff Rosenberg
Peter Ball
Paul Robson
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.technology1.com
P. 1800 671 978
International: +617 3167 7300
Branch Locations
Brisbane
Sydney
Melbourne
Canberra
Adelaide
Perth
Hobart
Auckland
Wellington
Kuala Lumpur
London
Auditor
Ernst & Young
Level 51, 111 Eagle Street
Brisbane QLD 4000
www.ey.com/au
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)
2024 Annual Report
Technology One Limited
TechnologyOne (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 community. 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.
Since 1987, 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.
Technology1.com
Australia | New Zealand | South Pacific | Asia | United Kingdom
Freecall 1800 671 978 (within Australia) | +617 3167 7300 (outside Australia)