Gentrack : Financial Statements including Chair's Commentary

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Gentrack Group Limited

Interim Financial Statements

For the six months ended 31 March 2022

For personal use only

Contents

• Commentary

• Interim Financial Statements

• Condensed Statement of Comprehensive Income

• Condensed Statement of Financial Position
  8 Condensed Statement of Changes in Equity
  9 Condensed Statement of Cash Flows
  10 Notes to Condensed Financial Statements
  18 Independent Review Report
  20 Corporate Directory

GENTRACK INTERIM FINANCIAL STATEMENTS / 2

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MANAGEMENT COMMENTARY

• Revenue: $57.1m - up 12.0% on H1'21
• Strong investment in strategic R&D and Sales and Marketing
• EBITDA $1.2m - down by $5.8m on H1'21
• Statutory NPAT: ($5.8m) loss v ($1.1m) in H1'21
• Cash: $16.5m

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The first half of the financial year has seen Gentrack make excellent progress in two key areas. Revenue has grown well despite the turmoil in the UK Energy market, and our planned investments in Strategic R&D and in sales and marketing have really ramped up - with the expected impact on EBITDA and cash.

Revenue was driven by a 15.2% increase in the Utilities business to $48.9m for this half year from new customer wins and growth from existing customers. This was achieved against the backdrop of twelve of our UK customers moving into insolvency over the last 18 months and the continuing UK energy crisis which has impacted the B2C portion of our UK energy customer base. Revenue growth in UK utilities outside of insolvent customers was 25% overall with 14% growth in Annual Recurring Revenues (ARR).

Revenues were slightly down in Veovo's Airports business by $0.3m to $8.2m due to the industry downturn. However, ARR was up 8.1% reflecting our focus on driving more recurring revenues. We are now seeing passenger flows at airports recover.

As set out in our strategy presentation last June and in our earnings guidance provided at the Annual Shareholders' Meeting in February, we have substantially increased our investment in strategic R&D and in Sales

• Marketing. This, together with an investment in our people capabilities, resulted in EBITDA of $1.2m, $5.8m lower versus prior period. Our programs for product investment and business development are positioning us well for the accelerating industry transformation. Early

signs of increased engagement with clients across the world are encouraging.

The lower cash position of $16.5m at March 2022 versus $26.0m at September 2021 reflects both increased investment in Strategic R&D and Sales and Marketing as well as the phasing of customer receipts on some large implementation projects. We expect our cash position to improve in the second half of the year, as we continue to deliver successfully on large scale transformation projects.

In light of the NPAT loss, the Board has decided not to pay an Interim Dividend.

In addition to the 7 new logos secured in FY21, we have secured a further 5 new logos in our Utilities business alongside orders to expand with existing customers. This includes an energy supplier in Singapore which demonstrates the progress we are making in growing our pipeline in the wider APAC region.

We continue to demonstrate our capability to deliver on large-scale transformation projects which provides us with a competitive edge against many of our peers. During the half year we helped drive synergies and system harmonisation on the merger of So Energy and ESB in the UK. In New Zealand, we completed the separation of Trustpower's B2C and B2B businesses. We have also transformed several customers spread across each of our core markets by modernising their platform and moving them into the cloud.

In the UK B2C energy market we have not seen any further customer insolvencies since December and believe the worst of the UK market shake up is over. As part of this

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MANAGEMENT COMMENTARY

shake up, Bulb, which was placed into special administration in December, remains a customer whilst the government seeks a buyer for this business.

We are pleased with the progress made in the period, on sales, on delivery and on Strategic R&D and Sales and Marketing. We are well positioned to capture the sizeable market opportunity created by the transformation of the utilities and airports sectors across the world.

Andy Green

Chairman

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Interim

Financial

Statements

31 March 2022

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