Annual financial statement
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Jo: Gentrack Group Limited Financial Statements For the year ended 30 September 2025
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GENTRACK FINANCIAL STATEMENTS / 2 Contents 3 Management Commentary 6 Auditor’s Report 9 Directors’ Responsibility Statement 10 Financial Statements 11 Statement of Comprehensive Income 12 Statement of Financial Position 13 Statement of Changes in Equity 14 Statement of Cash Flows 15 Notes to the Financial Statements 47 Corporate Directory
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Chairman’s and CEO’s Commentary GENTRACK FINANCIAL STATEMENTS / 3 Gentrack operates in the energy, water, and airports sectors – all of which are growth segments providing essential services. Our mission in utilities is to help the world accelerate towards a net zero future by leading the global modernisation of energy and water retailers. Gentrack has over 760, and growing, utility professionals who are passionate about this purpose. We are a market leader in our core markets of Australia with 22 retailers, New Zealand with over fifty percent of homes and industry serviced by our systems, and the United Kingdom where 24 retailers are using our technology across energy and water. We are targeting expansion into Asia and EMEA. In October 2025 we passed a key milestone for our Utilities business with Genesis Energy of New Zealand going live on the first full scope deployment of g2.0, our new cloud-based platform with Salesforce’s CRM embedded. Existing customers and prospects are engaged in understanding the benefits and experiences that g2.0 can bring to their customers. Soon ACEN of the Philippines will go live with g2.0 marking our first Asian customer with a full end to end g2.0 stack. Furthermore, as announced we have signed our first g2.0 water customer in the UK with our recent win at Pennon Water Services. Supporting B2B and mass market across both energy and water is a strong differentiator for Gentrack. Our airports division, Veovo, which operates in 25+ countries and over 150 airports, has had another strong year. Veovo has continued to grow with current customers and win new customers while delivering more projects than ever before. This has led to an underlying revenue growth of 30% (excluding hardware sales) which has translated into excellent growth in recurring revenues and EBITDA contribution. Financial performance For the Group, revenues increased 8% over the prior period to $230.2m and the Group’s recurring revenue was 13% higher at $155.4m with both our divisions seeing strong recurring revenue growth in FY25. In our Utilities business, total revenue grew by 7% to $193.4m. Our recurring revenues grew strongly, by 12% as wins and upgrades from prior periods flowed through into recurring revenue. This uplift was partially offset by lower non-recurring revenues (5% lower than in FY24), a reflection of the high level of project work in the prior year and the variable nature of such revenues. We continue to expect strong levels of non-recurring revenue going forward. Revenues at Veovo grew by 15% to $36.8m. This was driven by new customer wins in the prior year in the UK and the Middle East and from upgrades in APAC. Growth includes both higher recurring revenue, (up 18% over FY24) alongside more project work (non-recurring revenue was 13% higher even though more variable hardware sales, sourced from our supplier network, were $2.6m lower in FY25 at $4.2m). EBITDA at $27.8m was 18% higher than FY24. We are investing more into our Product including as mentioned landing our first deployment of g2.0 in Genesis Energy and all of this spend has been expensed in the year. We have also increased investment in sales to support the high levels of activity we are seeing in our current pipeline. • Revenue: $230.2m – up 8% on FY24 with the Group’s recurring revenues 13% higher at $155.4m. • EBITDA: $27.8m – up 18% on FY24 with all R&D and g2.0 investment costs expensed. • Statutory NPAT: $20.9m profit – up 119% over FY24. • Cash: $84.8m an increase of $18.1m over FY24. • No Dividend payable.
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Chairman’s and CEO’s Commentary GENTRACK FINANCIAL STATEMENTS / 4 Our NPAT of $20.9m is an increase of 119% over the prior year. This increase in profit includes a $2.2m loss being our share (10%) of the losses of Amber (which we account for as an associate company in our financial statements). Also excluded from EBITDA but within our NPAT, is $3.2m of foreign exchange gains arising from the appreciation of some of the currencies, principally Sterling, used by subsidiary companies, within the Group. The Group booked a tax credit of $0.6m in FY25 (compared to a tax charge of $5.1m in FY24), reflecting the tax relief received from the vesting of share-based payments in the year. We will see the benefit of this in our FY26 cashflow with reduced levels of tax paid as a result. We continue to generate cash and maintain a strong balance sheet. Our cash at the end of the year was $84.8m, a $18.1m increase over FY24. Gentrack’s Utilities and Veovo businesses both operate in high growth and consolidating markets. The Board believes that the best use of the company’s capital is to continue to invest in growth. We have therefore decided not to pay a dividend. We will keep the use of capital under regular review. Bringing value to our Energy and Water customers In addition to global expansion, we continue to see new opportunities for more water and energy customer wins across our core markets. Utility Warehouse, one of the UK’s fastest growing retailers and a new billing customer win in FY25, supply energy and telecommunications products to nearly two million meter points and are combining Gentrack’s billing software with their multi service delivery platform. Across FY25, we signed several, long term billing renewals including with Engie, Shell Energy, Wave, Castle Water, So Energy and Marble Power in the UK, Vector in New Zealand and Singapore’s Pacific Light. We also continue to work with our customers to enable innovative solutions across our base including for battery services at Ecotricity with Amber and for heat cylinder optimization and grid stability with Mercury in New Zealand. Strong track record of successful transformations for our customers Gentrack’s track record of successful transformations is a core strength of our business and critical for customers and potential customers when choosing a software vendor. This last year we migrated Power and Water Corporation which is one of the more complex transformations worldwide representing a retailer that supports networks, energy and water to service consumers, industry and SMEs in a single platform. Also in Australia, Amber and Vocus, both new customer wins in FY24, are now live on their Gentrack platforms. In the UK, just over 6 months after contracting with Utility Warehouse, we have migrated their first customers across to their new platform. During FY25, Gentrack successfully enabled 10 UK energy retailers to pass critical milestones in the Market-Wide Half-Hourly Settlement (MHHS) programme. This programme is central to the UK’s energy transition and by enabling the settlement of half-hourly data for all electricity customers, it will support a more flexible, efficient, and greener system. Industry-wide change on this scale is complex. Building on our global experience (including Australia’s transition from 30-minute to 5- minute settlement) we are helping our customers move through this transformation with confidence. We will continue working with our customers in FY26 to complete their MHHS transitions. Veovo’s Leading Technology Capabilities Veovo’s growth story has continued in FY25, driven by airports investing in digital transformation. This has meant major expansion within our largest customers, a continued move to our latest platform with Gen8 upgrades and new customers in the US, Canada, Brazil and APAC. Of note, is the signing of our contract with NAV CANADA, the Air Navigation Service Provider (ANSP) for Canadian Air Traffic Control. This contract will see the Veovo Billing platform responsible for all charging for the world’s second largest ANSP. This is a long-term contract that reinforces Veovo’s market leading position in aeronautical billing combined with entry into a new market segment with global potential. FY25 has seen Veovo deliver more projects than ever before. This has seen multiple airports go-live in Saudi Arabia and at the Manchester Airport Group with our Passenger Predictability platform; Edinburgh Airport live with our Airport Operations Platform and a continued rollout of our Gen8 platform in Australia, New Zealand and EMEA ensuring continued customer retention.
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Chairman’s and CEO’s Commentary GENTRACK FINANCIAL STATEMENTS / 5 Our Next Generation Resource Management System, brings this module on to our modern SaaS platform, with greater intelligence and optimisation capability. This is now in deployment at two airports, with a wider global rollout planned in 2026. Our win with London Gatwick for Integrated Airport Control is driving forward our AI/ML prediction platform as we deliver the first phase of their Total Airport Management concept. Veovo enters FY26 with a very strong backlog of projects and strong pipeline. We expect the story to continue. Some Global Economic Trends and Key Risks As we set out in the half year results, Gentrack operates in industries that are strong growth verticals and are well protected from potential negative global macro-economic trends. Gentrack provides essential services for utilities and airports, industries which are going through technology modernisation and digitisation. There has been some pull back against net-zero targets, which could potentially affect change programs for utilities, but we do not see this as a current risk in our target utility expansion markets of EMEA and APAC. We see the rise in AI as a benefit to our customers and to our own operational performance. AI adoption in our tooling and ways of working has led to savings and throughput improvements. Furthermore, we support AI and data capabilities through our technology stacks across both utilities and airports. We also see amazing potential for our SalesForce customers to leverage the innovation that SalesForce AI investments have unlocked. In the event of an unexpected global economic downturn, passenger travel numbers could slow the rate of airport transformations, but Veovo has proven to be resilient in such circumstances as was evidenced during the Covid era. Concerning our currency exposure, the weakening of the New Zealand and Australian dollars has benefited Gentrack due to our global customer base and operating theatres. Looking Forward Both the utilities and airports industries are transforming at pace. They are dynamic markets in a state of change, and we are confident in our ability to lead these markets globally over time. We would like to thank our customers and shareholders for their continued support, and the entire Gentrack team for their achievements and commitment to Gentrack’s future. ______________________________________ ______________________________________ Andy Green, CBE Gary Miles Chairman CEO
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6 Independent auditor’s report to the shareholders of Gentrack Group Limited Opinion We have audited the financial statements of Gentrack Group Limited (the “Company”) and its subsidiaries (together the “Group”) on pages 11 to 46, which comprise the consolidated statement of financial position of the Group as at 30 September 2025, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended of the Group, and the notes to the consolidated financial statements including material accounting policy information. In our opinion, the consolidated financial statements on pages 11 to 46 present fairly, in all material respects, the consolidated financial position of the Group as at 30 September 2025 and its consolidated financial performance and cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards. This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company ’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Ernst & Young provides statutory filing services to Veovo A/S. Partners and employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other relationship with, or interest in, the Group. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements 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 statements section of the audit report, including in relation to these matters.
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7 Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. 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 consolidated financial statements. Revenue recognition –implementation projects Why significant How our audit addressed the key audit matter A substantial amount of the Group's revenue relates to revenue from implementation projects. Where these contracts are fixed price and have a long-term duration, revenue and margin are recognised over time as the services are performed. This is calculated based on the proportion of total hours incurred at the reporting date compared to the Group's estimation of total hours required to fulfil the contract, applied to the total expected revenue from the relevant contract. Expected revenue comprises fixed contractual revenue and, where relevant, other amounts such as variations due to scope changes. Where the unavoidable costs of meeting the obligations under a contract exceed the economic benefits expected to be received under that contract, an onerous contract provision is recorded for the difference between these amounts. There is a high level of management judgement and estimation involved in accounting for the Group's fixed price and long-term implementation projects, in particular relating to: ► Detailed knowledge of individual characteristics of a contract, including its unique terms, knowledge of the software and expected length of time to complete contractual milestones; ► Ongoing adjustments to estimated hours to complete implementation taking into consideration changes in scope, estimated timing and project delays; ► Changes to total expected project revenue for contract variations or additional billing for changes in scope or additional hours incurred; and ► Estimation of the unavoidable cost and economic benefits expected when a contract has become onerous. Disclosures in relation to the Group’s revenue are included in note 3.2 to the consolidated financial statements. I n obtaining sufficient appropriate audit evidence, we: ► confirmed our understanding of the Group's processes and associated controls regarding the accounting for fixed priced implementation project revenues. ► selected a sample of fixed priced implementation projects that were in progress at balance date, based on a number of quantitative and qualitative factors. The qualitative factors included known or potentially onerous contracts, significant unapproved variations and other factors which might indicate a greater level of judgement was required by the Group. For the projects selected, where relevant, we: ► assessed whether revenue recognised was consistent with contractual terms and NZ IFRS 15, including any allocations of contract revenue between initial license fee, design and implementation, and maintenance phases of the contracts; ► recalculated revenue to date based on actual hours incurred as a percentage of total forecast hours to ensure revenue was recognised in line with the project manager’s estimate; ► assessed the forecast hours to complete and project status through discussion with project managers and senior management; ► sample tested project hours and costs incurred to assess the accuracy of their recording; ► used data analysis techniques to assess the correlation between revenue, deferred revenue, accounts receivable, and cash; and ► evaluated project performance in the period since year end to the date of this report to assess the Group's year end judgements in respect of revenue recognition and forecast hours to complete. ► considered the adequacy of the associated disclosures in the financial statements.I nformation other than the financial statements and auditor’s report The directors of the Company are responsible for the other information. The other information comprises the Management Commentary, the Directors’ Responsibility Statement and the Corporate Directory but does not include the consolidated financial statements and our auditor’s report thereon, which we obtained prior to the date of this auditor’s report, and the remainder of the annual report including the climate statement, which is expected to be made available to us after that date. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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8 In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the remainder of the annual report, including the climate statement, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and, if uncorrected, to take appropriate action to bring the matter to the attention of users for whom our auditor’s report was prepared. Directors’ responsibilities for the financial statements The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the consolidated financial statements in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the directors are responsible for assessing on behalf of the entity the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are 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 International Standards on Auditing (New Zealand) 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 these consolidated financial statements. A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance- practitioners/auditors-responsibilities/audit-report-1/. This description forms part of our auditor’s report. The engagement partner on the audit resulting in this independent auditor ’s report is Rob Yeardley. Chartered Accountants Auckland 21 November 2025
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GENTRACK FINANCIAL STATEMENTS / 9 DIRECTORS’ RESPONSIBILITY STATEMENT The Directors are required to prepare financial statements for each financial year that present fairly the financial position of Gentrack Group and its operations and cash flows for that period. The Directors consider these financial statements have been prepared using accounting policies suitable to Gentrack Group’s circumstances, which have been consistently applied and supported by reasonable judgements and estimates, and that all relevant financial reporting and accounting standards have been followed. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy, at any time, the financial position of Gentrack Group and to enable them to ensure that the financial statements comply with the Companies Act 1993. They are also responsible for safeguarding the assets of Gentrack Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board of Directors of Gentrack Group authorised these financial statements for issue on 2 1 November 2025. For and on behalf of the Board of Directors: Andy Green Fiona Oliver Chairman Date: 21 November 2025 Director Date: 21 November 2025
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GENTRACK FINANCIAL STATEMENTS / 10 Financial Statements 30 September 2025
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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 11 The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes. 2025 2024 SECTION N Z $0 0 0 N Z $0 0 0 Revenue 3.1 ,3.2 230,194 213,242 Expenditure 3.4 (202,406) (189,657) Profit before depreciation, amortisation, other income, foreign exchange gain or loss, financing, share of loss of an associate and tax 27,788 23,585 Depreciation and amortisation 3.5 (9,549) (8,993) Profit before other income, foreign exchange gain or loss, financing, share of loss of an associate and tax 18,239 14,592 Other Income 3.3 971 1,693 Foregin exchange gains 3,243 36 Finance expense 3.6 (1,341) (1,497) Finance income 3.6 1,308 1,131 Share of loss of an associate 2.4 (2,185) (1,339) Profit before tax 20,235 14,616 Income tax expense 7.1 635 (5,070) Profit attributable to the shareholders of the company 20,870 9,546 OTHER COMPREHENSIVE INCOME Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax): Share of other comprehensive profit of an associate 2.4 77 252 Translation of international subsidiaries 11,370 3,417 Total comprehensive profit for the period 32,317 13,215 EARNINGS PER SHARE ATTRIBUTABLE TO THE SHAREHOLDERS OF THE COMPANY (EXPRESSED IN DOLLARS PER SHARE) Basic earnings per share 6.4 $0.20 $0.09 Diluted earnings per share 6.4 $0.19 $0.08 WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES ISSUED Basic 6.4 107,026 103,112 Diluted 6.4 112,682 113,828
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STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 12 The above Statement of Financial Position should be read in conjunction with the accompanying notes. For and on behalf of the Board who authorised these financial statements for issue on 2 1 November 2025. Andy Green Fiona Oliver Chairman Director Date: 21 November 2025 Date: 21 November 2025 2025 2024 SECTION N Z $0 0 0 N Z $0 0 0 CURRENT ASSETS Cash and cash equivalents 4.3 84,816 66,679 Trade and other receivables 5.1 53,499 44,434 Income tax receivable 3,087 167 Inventory 5.8 758 576 Total current assets 142,160 111,856 NON-CURRENT ASSETS Property, plant and equipment 5.5 3,282 2,898 Lease assets 9.1 11,895 12,823 Goodwill 5.2 119,270 111,955 Intangibles 5.4 17,447 21,510 Investment in an associate 2.4 14,547 11,801 Deferred tax assets 7.2 16,185 14,840 Total non-current assets 182,626 175,827 Total assets 324,786 287,683 CURRENT LIABILITIES Trade payables and accruals 5.6 14,622 11,933 Lease liabilities 9.1 3,640 2,738 Contract liabilities 18,455 17,056 GST payable 4,765 2,751 Employee entitlements 5.7 22,303 22,686 Income tax payable - 1,626 Total current liabilities 63,785 58,790 NON-CURRENT LIABILITIES Lease liabilities 9.1 12,636 14,417 Employee entitlements 5.7 1,503 3,897 Deferred tax liabilities 7.2 2,669 2,776 Total non-current liabilities 16,808 21,090 Total liabilities 80,593 79,880 Net assets 244,193 207,803 EQUITY Share capital 6.1 206,465 200,698 Share-based payment reserve 12,266 11,738 Foreign currency translation reserve 20,752 9,382 Retained earnings 4,710 (14,015) Total equity 244,193 207,803
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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 13 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 2025 N Z $ 000 SECTION Balance as at 1 October 200,698 11,738 (14,015) 9,382 207,803 - - 20,870 - 20,870 Other comprehensive income - - 77 11,370 11,447 - - 20,947 11,370 32,317 TRANSACTION WITH OWNERS - - (2,222) - (2,222) Issue of share capital 6.1 5,767 (5,767) - - - Share-based payments 6.2 - 6,295 - - 6,295 Balance at 30 September 206,465 12,266 4,710 20,752 244,193 RETAINED EARNINGS TRANSLATION RESERVE TOTAL EQUITY SHARE CAPITAL SHARE BASED PAYMENT Excess income tax benefit on share- based payments Profit attributable to the shareholders of the company Total comprehensive income for the period, net of tax 2024 N Z $ 000 SECTION Balance as at 1 October 196,031 6,187 (26,767) 5,965 181,416 - - 9,546 - 9,546 Other comprehensive income - - 252 3,417 3,669 - - 9,798 3,417 13,215 TRANSACTION WITH OWNERS - - 2,954 - 2,954 Issue of share capital 6.1 4,667 (4,667) - - - Share-based payments 6.2 - 10,218 - - 10,218 Balance at 30 September 200,698 11,738 (14,015) 9,382 207,803 Profit attributable to the shareholders of the company RETAINED EARNINGS TRANSLATION RESERVE SHARE CAPITAL SHARE BASED PAYMENT TOTAL EQUITY Excess income tax benefit on share- based payments Total comprehensive income for the period, net of tax
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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 14 *Government grants shown as a separately line. The above Statement of Cash Flows should be read in conjunction with the accompanying notes. 2025 2024 SECTION N Z $0 0 0 N Z $0 0 0 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 225,359 212,672 Payments to suppliers and employees (197,339) (171,654) Receipts from government grants* 1,693 1,574 Income tax paid* (7,703) (8,206) Net cash inflow from operating activities 22,010 34,386 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment 5.5 (1,743) (1,087) Investment in an associate 2.4 (4,854) (12,888) Net cash outflow from investing activities (6,597) (13,975) CASH FLOWS FROM FINANCING ACTIVITIES Payments for lease liabilities 9.1 (2,638) (2,534) Lease liability finance charge 9.1 (1,073) (1,108) Interest paid (268) (389) Interest received 1,308 1,131 Net cash outflow from financing activities (2,671) (2,900) Net increase in cash held 12,742 17,511 Foreign currency translation adjustment 5,395 (18) Cash at beginning of the financial period 66,679 49,186 Closing cash and cash equivalents 84,816 66,679
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 15 GENERAL INFORMATION ACCOUNTING POLICES CRITICAL JUDGEMENTS GENERAL INFORMATION The notes are consolidated into nine sections. Each section contains an introduction and general information which is indicated by the symbol above. The layout of these financial statements has been streamlined to present them in a way that is more intuitive for readers to follow. This is achieved by laying out the accounting policies and critical judgements alongside the notes and focusing information in a way which provides increased clarity and ease of understanding. The first section details general information about Gentrack Group and guidance on how to navigate through the financial statements. MATERIAL ACCOUNTING POLICY INFORMATION The principal accounting policies adopted in the preparation of these financial statements are set out throughout the document where they are applicable. These policies have been consistently applied to all the years presented, unless otherwise stated. Accounting policies are identified by this symbol above. CRITICAL JUDGEMENTS The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue, and expenses. Management bases its judgements and estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values for assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods. Further details of the nature of these critical judgements and estimates may be found throughout the financial statements as they are applicable and are identified by this symbol. 1. GENERAL INFORMATION Gentrack Group Limited is a limited liability company, domiciled and incorporated in New Zealand and registered under the New Zealand Companies Act 1993. The registered office of Gentrack Group Limited (Company) is 17 Hargreaves Street, St Marys Bay, Auckl and 1011, New Zealand. The financial statements presented are for Gentrack Group Limited (the parent) and its subsidiaries (Gentrack Group) for the year ended 30 September 202 5. Prior year comparatives are for the year ended 30 September 202 4. The financial statements of Gentrack Group for the year ended 30 September 202 5 were authorised for issue in accordance with a resolution of the directors on 21 November 2025. Gentrack Group’s principal activity is the development, integration, and support of enterprise billing and customer management software solutions for the utility (energy and water) and airport industries.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 16 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES This section outlines the legislation and accounting standards which have been followed in the preparation of the financial statements along with explaining how the information has been consolidated and presented . 2.1 KEY LEGISLATION AND ACCOUNTING STANDARDS The financial statements of Gentrack Group have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards as appropriate to profit -oriented entities. The financial state ments comply with International Financial Reporting Standards (IFRS). Gentrack Group is a FMC entity for the purposes of the Financial Reporting Act 2013 and Financial Markets Conduct Act 2013 and is listed on the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX). The financial statements have been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013. 2.2 BASIS OF CONSOLIDATION Subsidiaries are entities over which Gentrack Group has control. Gentrack Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and can affect those returns through its power over the entity. In assessing control, potential voting rights that currently are exercisable are considered. Subsidiaries are fully consolidated from the date that control is transferred to Gentrack Group. They are deconsolidated from the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by Gentrack Group. Intra-group balances and any unrealised income and expenses arising from intra -group transactions, are fully eliminated in preparing the financial statements. FUNCTIONAL AND PRESENTATION CURRENCY Items included in the financial statements of each of Gentrack Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are presented in New Zealand dollars (NZD) which is Gentrack Group’s presentation currency. All financial information has been presented rounded to the nearest thousand dollars ($000) in the financial statements. 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 profit or loss. FOREIGN CURRENCY TRANSLATION RESERVE (FCTR) Gentrack Group translates the results of its foreign operations from their functional currencies to the presentation currency using the closing exchange rate at balance date for assets and liabilities and the average monthly exchange rates for income and e xpenses. The difference arising from the translation of the statement of financial position at the closing rates and the statement of comprehensive income at the average rates is recorded within the foreign currency translation reserve within the statement of comprehensive income . 2.3 BUSINESS COMBINATIONS Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to Gentrack Group. Control is the exposure or right to variable returns from involvement with the entity and the ability to affect those returns through power over the entity. Gentrack Group recognises the fair value of all identifiable assets, liabilities, and contingent liabilities of the acquired business. Goodwill is measured as the excess cost of the acquisition over the recognised assets and liabilities. When the excess is negative (negative goodwill), the amount is recognised immediately in the statement of comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 17 2.3 BUSINESS COMBINATIONS (CONTINUED) Gentrack Group has not made any acquisitions during the year ended 30 September 202 5 or 2024. For details of acquisitions made in prior years refer to the 2018 Annual Report. 2.4 INVESTMENT IN ASSOCIATES An associate is an entity over which Gentrack Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. On January 31, 2024, Gentrack Group finalised a subscription deed, acquiring a 10% interest in Amber Holding Corporation Pty Limited (Amber). Between May 2025 to October 2025 Amber raised further capital in which Gentrack Group participated, resulting in Gentrack Group holding 9.9% at end of financial year 2025 and 9.7% post the final investor investment in October 2025. Amber’s primary business activities are software sales and energy retail. The Group has a seat on Amber’s Board. According to NZ IAS 28 Investment in Associates, Gentrack’s presence on Amber’s Board signifies the existence of Gentrack’s significant influence over Amber, leading Gentrack Group to use the equity method of accounting for its interest in Amber in the consolidated financial statements. Amber’s financial year ends in June. To align with Gentrack Group’s financial reporting, Amber's financial statements are adjusted for the effects of significant transactions or events that occur between the date of those financial statements and the date of the consolidated financial statements. The accounting policies of Amber are consistent with Gentrack Group's policies. As a result, no additional adjustments are required when recognising and measuring Gentrack Group’s share of Amber's profit or loss af ter the acquisition date.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 18 2.5 GROUP INFORMATION The financial statements include the following subsidiaries: In October 2024, Gentrack France SAS, a wholly owned subsidiary of Gentrack UK Limited, was incorporated to support the Gentrack Group in software development and sales initiatives. In July 2025, the Company completed the deregistration of CA Plus Limited, a wholly owned dormant subsidiary of Veovo Group Limited and it no longer forms part of the consolidated Gentrack Group. The entity had no operations at the time of dissolution, and removal does not impact Gentrack Group’s ongoing operations and financial position. 2.6 IMPACT OF STANDARDS ISSUED BUT NOT YET ADOPTED The External Reporting Board has issued NZ IFRS 18 Presentation and Disclosure in Financial Statements, as well as amendments to existing international accounting standards. Gentrack Group will adopt NZ IFRS 18 when mandatory. Management is currently assessing the impact of NZ IFRS 18 on the Group’s financial statements. There were no other new effective standards adopted on 1 October 2024 that had a material impact on the financial statements. ENTITY PRINCIPAL ACTIVITY COUNTRY OF INCORPORATION SHAREHOLDING 2025 SHAREHOLDING 2024 Gentrack Group Australia Pty Limited Holding company Australia 100% 100% Gentrack Pty Limited Software sales and support Australia 100% 100% Veovo Holdings (Denmark) ApS Holding company Denmark 100% 100% Veovo A/S (formally Blip Systems A/S) Software development sales and support Denmark 100% 100% CA Plus Limited Software development sales and support Malta 0% 100% Veovo Group Limited Holding company New Zealand 100% 100% Gentrack Limited Software development sales and support New Zealand 100% 100% Gentrack Holdings (UK) Limited Holding company United Kingdom 100% 100% Gentrack UK Limited Software development sales and support United Kingdom 100% 100% Junifer Systems Limited Dormant United Kingdom 100% 100% Evolve Parent Limited Holding company United Kingdom 100% 100% Evolve Analytics Limited Dormant United Kingdom 100% 100% Gentrack Software Private Limited Software development and support India 100% 100% Gentrack Information Systems Technology Company Software sales and support Kingdom of Saudi Arabia 100% 100% Gentrack (Singapore) Pte Limited Software sales and support Singapore 100% 100% Gentrack France SAS Software sales and support France 100% 0% Veovo Inc Software sales and support United States of America 100% 100% Veovo NZ Limited Software sales and support New Zealand 100% 100% Veovo UK Limited Software sales and support United Kingdom 100% 100% Veovo IP Limited Software development New Zealand 100% 100%
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 19 3. GROUP PERFORMANCE This section outlines further details of Gentrack Group’s financial performance by building on the information presented in the Statement of Comprehensive Income. 3.1 OPERATING SEGMENTS An operating segment is a component of an entity that engages in business activities from which it may earn revenue and incur expenses, whose operating results are regularly reviewed by the entity’s Chief Operating Decision Maker (CODM) 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 are aggregated for disclosure purposes where they have similar products and services, production processes, customers, distribution methods and regulatory environments. Gentrack Group currently operates in two business segments, utility billing software and airport management software. Consistent with prior years, Gentrack Group’s corporate costs are included in the utility segment. These segments have been determined based on the reports reviewed by the Board ( CODM) to make strategic decisions. In the table below we split the revenues between point in time and over time recognition: Over time recognition is when the fulfilment of our obligation to provide goods and services and the customer’s ability to obtain the benefit from that occurs continuously over a period of time. Point in time recognition is where that happens at a point in time. Revenue recognised over time include annual fees, support services and project revenues recognised over the stages of completion. Revenue recognised at a point in time includes part of our managed services revenue which is recognised when the customer benefits have been confirmed and, within our airport segment (also referred to as the Veovo business) hardware sales included as part of the implementation of a pr oject. The assets and liabilities of Gentrack Group are reported to and reviewed by the CODM in total and are not allocated by business segment. Therefore, operating segment assets and liabilities are not disclosed. (1) Segment contribution is defined as profit before depreciation, amortisation, other income, foreign exchange gain or loss, financing, share of loss of an associate and tax. 2025 UTILITY AIRPORT TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 TIMING OF REVENUE RECOGNITION Point in time 29,981 4,416 34,397 Over time 163,420 32,377 195,797 Total revenue 193,401 36,793 230,194 EXPENDITURE Employee entitlements (123,783) (17,087) (140,870) Other operating expenses (49,345) (12,191) (61,536) Total expenditure (173,128) (29,278) (202,406) Segment contribution (1) 20,273 7,515 27,788
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 20 3.1 OPERATING SEGMENTS (CONTINUED) A reconciliation of segment contribution to profit attributable to the shareholders of the company is as follows: In 2025, no individual customer contributed 10% or more of the Group’s total revenue. In 2024, Gentrack Group generated $24.6m from a single utility customer . 2024 UTILITY AIRPORT TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 TIMING OF REVENUE RECOGNITION Point in time 29,025 6,799 35,824 Over time 152,285 25,133 177,418 Total revenue 181,310 31,932 213,242 EXPENDITURE Employee entitlements (119,658) (15,839) (135,497) Other operating expenses (43,406) (10,754) (54,160) Total expenditure (163,064) (26,593) (189,657) Segment contribution 18,246 5,339 23,585 2025 2024 N Z $0 0 0 N Z $0 0 0 Segment contribution (1) 27,788 23,585 Depreciation and amortisation (9,549) (8,993) Other Income 971 1,693 Foreign exchange gains 3,243 36 Finance expense (1,341) (1,497) Finance income 1,308 1,131 Share of loss of an associate (2,185) (1,339) Income tax expense 635 (5,070) Profit attributable to the shareholders of the company 20,870 9,546 2025 2024 N Z $0 0 0 N Z $0 0 0 REVENUE BY DOMICILE OF ENTITY Australia 51,474 51,388 New Zealand 32,361 34,617 United Kingdom 119,980 105,892 Rest of World 26,379 21,345 Total revenue 230,194 213,242 REVENUE BY DOMICILE OF CUSTOMER Australia 57,218 55,252 New Zealand 23,852 26,982 United Kingdom 111,843 98,763 Rest of World 37,281 32,245 Total revenue 230,194 213,242
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 21 3.2 OPERATING REVENUE Gentrack Group recognises revenue from customers when the performance obligation has been accomplished. A performance obligation is accomplished when the customer has received all the benefits promised under the performance obligation. The following sections detail the type of revenue recognised within each category. Revenue recognition involves certain revenue streams being recognised based on the stage of completion. This process uses estimations of time required to complete the project and is based on detailed information on hours worked to date, prior experience, and project scheduling tools . Gentrack Group employs project managers to provide regular information to management on the progress of all projects. All material estimates are reviewed by management prior to revenue recognition. Contract assets are initially recognised for revenue earned from services in progress and are reclassified to trade receivables when there is an unconditional right to receive the consideration due from customer. Contract assets are subject to impairment assessments. Contract liabilities are recognised if a payment is received, or a payment is due (whichever is earlier) from a customer before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the Group performs under the contract. Contract assets and contract liabilities typically are recognised as trade receivables and revenue (respectively) within a 12-month period. ANNUAL FEES Annual fees include software support and maintenance charged on software licenses and software subscriptions. Revenue from annual fees is generally recognised on a straight-line basis over the period the benefits are consumed by the customer. SUPPORT SERVICES Support services are post implementation value -add professional services related to ongoing upgrades, minor software revisions and extended support. Support services revenue is recognised when the service is complete or on a stage of completion basis. LICENSES Revenue from license fees is recognised when the customer can benefit from the licensed software. License fees that are highly interrelated with project services are recognised based on the stage of completion of the project. PROJECT SERVICES Revenue from project services is recognised based on the stage of completion of the project. This is typically in accordance with the achievement of contract milestones and/or hours expended and forecast hours to complete the project. MANAGED SERVICES Managed Services include revenues where Gentrack uses its own software and expertise, on behalf of customers, to deliver either improvements in the energy reconciliation process or supporting customers with billing and operational back-office processes. Revenue is recognised when the service is complete or over the period that the benefits are consumed by the customer. OTHER Other revenue is primarily revenue from hardware and the recharge of ad -hoc costs that are recharged to customers. Revenue from hardware sales is recognised when the hardware has been delivered to the customer.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 22 3.2 OPERATING REVENUE (CONTINUED) 3.3 OTHER INCOME GOVERNMENT GRANTS Government grants including certain types of credits receivable from tax authorities are recognised at their fair value where there is a reasonable assurance that the grant will be received, and Gentrack Group will comply with all attached conditions. When a grant relates to an expense item, it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Included as other income in the statement of comprehensive income during the financial year are amounts expected to be received from the UK tax authorities as a credit against UK corporation tax in the form of Research and Development Expenditure Credits ( RDEC) to compensate for eligible research and development activities performed in the United Kingdom. 3.4. EXPENDITURE The table below provides a detailed breakdown of the total expenditure presented in the statement of comprehensive income. Included in the total expenditure above, Gentrack Group has expensed $21.6m in Research and Development expenditure (2024: $22.7m). This Research and Development expenditure includes payroll costs, employee benefits and other employee related costs, direct overheads, and other directly attributable costs related to performing Research and Development activities. 2025 2024 N Z $0 0 0 N Z $0 0 0 OPERATING REVENUE: Annual fees 82,092 68,989 Support services 42,284 38,491 Project services 65,976 64,133 Licenses 4,218 4,757 Managed services 31,003 30,067 Other 4,621 6,805 Total operating revenue 230,194 213,242 2025 2024 N Z $0 0 0 N Z $0 0 0 PROFIT / (LOSS) BEFORE TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES: Employee entitlements 140,870 135,497 Administrative costs 9,409 7,851 Third party customer-related costs 22,529 21,304 Advertising and marketing 2,868 2,255 Consulting and subcontracting 17,889 16,097 Other operating expenses 8,841 6,653 Total expenditure 202,406 189,657
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 23 3.5 DEPRECIATION AND AMORTISATION Depreciation on property, plant and equipment is calculated using the straight -line method to allocate the difference between their original cost and their residual value over their estimated useful lives . For right-of- use assets, amortisation is charged over the shorter of the lease term and the asset’s estimated useful life. Except for goodwill and brands, intangible assets are amortised on a straight -line over their estimated useful lives, from the date that they are available for use. 3.6. NET FINANCE EXPENSES Finance income comprises interest income that is recognised in the Statement of Comprehensive Income. Interest income is recognised as it accrues, using the effective interest method. Finance expense comprises interest expense on borrowings and lease liability finance charges that are recognised in the statement of comprehensive income. All borrowing costs are recognised in the statement of comprehensive income using the effective interest method. 2025 2024 SECTION N Z $0 0 0 N Z $0 0 0 DEPRECIATION EXPENSE Depreciation on property plant and equipment 1,453 1,300 Depreciation on lease assets 9.1 2,591 2,183 4,044 3,483 AMORTISATION EXPENSE Amortisation 5,505 5,510 5,505 5,510 Total depreciation and amortisation 9,549 8,993 2025 2024 SECTION N Z $0 0 0 N Z $0 0 0 FINANCE INCOME Interest income 1,308 1,131 1,308 1,131 FINANCE EXPENSE Interest expense (268) (389) Lease liability finance charges 9.1 (1,073) (1,108) (1,341) (1,497) Net finance expense (33) (366)
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 24 4. CASH, BORROWINGS AND CASH FLOWS This section outlines further from the statement of cashflows and provides details on the cash and cash equivalents held in the statement of financial position. Cash comprises cash at bank and short -term deposits. 4.1 RECONCILIATION OF NET SURPLUS TO CASH FLOWS 2025 2024 SECTION N Z $0 0 0 N Z $0 0 0 RECONCILIATION OF OPERATING CASH FLOWS WITH NET PROFIT AFTER TAX: Profit after tax 20,870 9,546 ADJUSTMENTS FOR NON-CASH ITEMS Deferred tax 7.2 (3,232) (2,066) Impairment provision - Trade receivables (132) (486) (Gain)/Loss on foreign exchange transactions (3,223) (38) Share based payments 6,327 10,218 Interest expense 3.6 268 389 Interest income 3.6 (1,308) (1,131) Lease liability finance charges 3.6 1,073 1,108 Depreciation and amortisation 3.5 9,549 8,993 Share of loss of an associate 2,185 1,339 Non-cash items 11,507 18,326 ADD/(DEDUCT) MOVEMENTS IN OTHER WORKING CAPITAL ITEMS: Increase in trade and other receivables (5,259) (5,308) (Increase)/Decrease in tax payable (4,404) (1,189) Increase/(Decrease) in GST payable 1,643 146 Increase in contract liabilities 280 3,340 Increase in employee entitlements (4,534) 6,280 Increase in trade payables and accruals 1,907 3,245 Net working capital movements (10,367) 6,514 Net cash inflow from operating activities 22,010 34,386
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 25 4.2 BANK FACILITIES AND BORROWINGS On 16 December 2024, G entrack Group refinanced the $25 million multicurrency facility loan agreement with Bank of New Zealand (BNZ). The renewed facility is available to provide additional funding for acquisitions and general corporate purposes, expires on 17 December 2027. The facility is secured by a general security agreement under which the bank has a security interest in Gentrack Group assets. Covenants are in place and compliance is reported quarterly. At all times during the period Gentrack Group has met the covenant requirements. At 30 September 2025 $Nil (2024: $Nil) of the facility has been drawn down. 4.3. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash in hand, deposits held at call with banks, other short -term and highly liquid investments with original maturities of six months or less. Cash at banks earns interest at floating rates based on daily bank deposit rates. Short -term deposits are made for varying periods of between one day and six months, depending on the immediate cash requirements of Gentrack Group, and earn interest at the respective short -term deposit rates. 5. ASSETS AND LIABILITIES This section outlines further details of Gentrack Group’s financial position by building on information presented in the statement of financial position. 5.1. TRADE AND OTHER RECEIVABLES Gentrack Group recognises trade and other receivables initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. An impairment provision for trade receivables and contract assets consists of the expected credit loss in accordance with NZ IFRS 9 Financial Instruments and a specific provision. The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on trade receivables and contract assets net o f specific provisions applying lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, and the age profile of the debtor balances adjusted for forward-looking factors specif ic to the debtors. A specific provision is established when there is forward looking evidence that Gentrack Group will not be able to collect all amounts due according to the original terms of the receivables. The carrying amount of an asset is reduced using provision accoun ts, and the amount of the loss is recognised in the profit and loss. When a receivable is uncollectible, it is written off against the specific impairment provision account. Subsequent recoveries of amounts previously written off are credited against the p rofit and loss. 2025 2024 N Z$0 0 0 N Z$0 0 0 Cash at banks 39,315 33,285 Short-term deposits 45,501 33,394 Total cash and cash equivalents 84,816 66,679
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 26 5.1. TRADE AND OTHER RECEIVABLES (CONTINUED) MOVEMENT IN TRADE RECEIVABLES IMPAIRMENT PROVISION Most of the impairment provision is reflective of B2C energy suppliers in the United Kingdom that went into administration during 2022 and 2021 . The Administrator reports continue to indicate possible recover y on retained balances. The expected credit loss provision for trade receivables and contract assets has been measured using the same techniques as the prior year, determined as follows. 2025 2024 NZ$ 0 0 0 NZ$ 0 0 0 Trade receivables 28,559 28,021 Impairment provision - Expected credit loss (293) (317) Impairment provision - Specific provision (1,277) (967) Provision for volume discounts (353) (91) Contract assets 20,875 12,401 Sundry receivables and prepayments 5,988 5,387 Total trade and other receivables 53,499 44,434 2025 2024 NZ$ 0 0 0 NZ$ 0 0 0 Opening balance 1,284 3,560 Increase in impairment provision 286 21 Amounts received (24) (443) Effect of movement in foreign exchange 101 63 Bad debt written off (77) (1,917) Total trade receivables impairment provision 1,570 1,284 2025 CURRENT 1 - 60 DAYS PAST DUE 61 - 1 20 DAYS PAST DUE 1 21 - 1 80 DAYS PAST DUE OVER 1 80 DAYS PAST DUE TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Gross carrying amount 22,393 3,363 1,132 377 1,294 28,559 Expected credit loss allowance 112 50 57 33 42 293 2024 CURRENT 1 - 60 DAYS PAST DUE 61 - 1 20 DAYS PAST DUE 1 21 - 1 80 DAYS PAST DUE OVER 1 80 DAYS PAST DUE TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Gross carrying amount 18,624 7,423 921 5 1,047 28,021 Expected credit loss allowance 93 113 38 0 72 317
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 27 5.2 GOODWILL Goodwill represents the difference between the cost of acquisition and the fair value of the net identifiable assets acquired. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units (CGU) and is not amortised but is tested annually for impairment . 5.3 IMPAIRMENT TESTING IMPAIRMENT TESTING OF GOODWILL AND OTHER ASSETS At each reporting date, Gentrack Group assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, Gentrack Group makes a formal estimate of the recoverable amount. Where the carrying value of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Recoverable amount is the greater of fair value less costs to sell and the asset’s value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre -tax discount rate that reflects the current market assessments and the time value of money and the risks specific to the asset. Value in use is det ermined by discounting the future cash flows generated by each CGU. Cash flows were projected based on five -year business plans. The Weighted Average Cost of Capital (WACC) is an average of the latest rates used by the analysts that cover Gentrack . The WACC for each CGU is reviewed at least annually. Gentrack Group tests annually whether goodwill has suffered any impairment or more often as required, in accordance with the accounting policy stated above. The recoverable amounts of cash -generating units have been determined based on value in use calculations. In preparing the five -year forecasts, management has reviewed the assumptions and weighed up the information available at the time to ensure the forecasts are appropriate given the CGU’s position and the prevailing market conditions. The WACC and terminal growth rates used in these calculations are set out in the table below: 2025 2024 N Z$0 0 0 N Z$0 0 0 Opening balance 111,955 109,420 Exchange rate differences 7,315 2,535 Net book value 119,270 111,955 Goodwill allocated to Utilities 116,370 109,055 Goodwill allocated to Veovo 2,900 2,900 Net book value 119,270 111,955 CASH GENERATING UNIT WACC 2025 Terminal Growth Rate 2025 WACC 2024 Terminal Growth Rate 2024 Utilities 9.9% 2.8% 9.8% 2.6% Veovo 9.9% 2.8% 9.8% 2.6%
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 28 5.3 IMPAIRMENT TESTING (CONTINUED) IMPAIRMENT TESTING RESULTS The calculations confirmed there was no impairment of goodwill during the year for the Utilities or Veovo CGU’s. For the Utilities business the key assumption is the CAGR of revenue across the five -year period commencing 1st October 2025. Under management’s projections this would need to drop below 0% for the recoverable amount to be less than the carrying value of the Utilities CGU. Management’s projections, under all scenarios, project a CAGR comfortably above this and this compares to growth in revenue in FY2 5 for the Utilities business of 6.7% (2024: 22.6%). For the Veovo business, the carrying value of the CGU is below the annual cashflow being generated by this business and so the assessment is not sensitive to changes in assumptions in management’s projections. Management believes that any reasonabl y possible change in the key assumptions for either CGU would not cause the carrying amount to exceed the recoverable amount. 5.4 INTANGIBLE ASSETS CAPITALISED DEVELOPMENT Costs that are directly associated with the development of software are recognised as intangible assets where the following criteria are met: • it is technically feasible to complete the software product so that it will be available for use; • management intends to complete the software product and use or sell it; • there is an ability to use or sell the software product; • it can be demonstrated how the software product will generate probable future economic benefits; • adequate technical, financial, and other resources to complete the development and to use or sell the software product are available; and • the expenditure attributable to the software product during its development can be reliably measured. Software development costs that meet the above criteria are capitalised. Other development expenditure that does not meet the above criteria is recognised as an expense as incurred. Development costs previously recognised as expenses are not recognised as assets in a subsequent period. Software development costs recognised as assets are amortised over their estimated useful lives. BRANDS Brands acquired are considered to have an indefinite useful life and are held at cost and are not amortised but are subject to an annual impairment test consistent with the methodology outlined for goodwill above. OTHER INTANGIBLE ASSETS Other intangible assets consist of internal use software, acquired source code, trade-marks, and acquired customer relationships. They have finite useful lives and are measured at cost less accumulated amortisation and accumulated impairment losses.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 29 5.4 INTANGIBLE ASSETS (CONTINUED) AMORTISATION Except for goodwill and brands, intangible assets are amortised on a straight -line basis in the statement of comprehensive income over their estimated useful lives, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: • Acquired source code 10 years • Internal use software 3 years • Customer relationships 10 years • Trademarks 4 years • Capitalised development 5 years Amortisation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. No changes were made to useful lives and residual values during financial year 202 5. Acquired source code and internal use software are categorised as software in the below table. 2025 SOFTWARE CUSTOMER RELATIONSHIPS BRAND NAMES TRADEMARKS CAPITALISED DEVELOPMENT TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Opening balance 10,888 5,584 5,024 - 14 21,510 Amortisation (3,649) (1,842) - - (14) (5,505) Movement in foreign exchange 953 489 - - - 1,442 Closing net book value 8,192 4,231 5,024 - - 17,447 Cost 51,052 27,213 5,024 995 2,948 87,232 Accumulated amortisation (42,860) (22,982) - (995) (2,948) (69,785) Net book value 8,192 4,231 5,024 - - 17,447 2024 SOFTWARE CUSTOMER RELATIONSHIPS BRAND NAMES TRADEMARKS CAPITALISED DEVELOPMENT TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Opening balance 13,835 7,070 5,024 - 382 26,311 Amortisation (3,415) (1,725) - - (370) (5,510) Movement in foreign exchange 468 239 - - 2 709 Closing net book value 10,888 5,584 5,024 - 14 21,510 Cost 47,527 25,432 5,024 905 2,820 81,708 Accumulated amortisation (36,639) (19,848) - (905) (2,806) (60,198) Net book value 10,888 5,584 5,024 - 14 21,510
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 30 5.5 PROPERTY PLANT AND EQUIPMENT In the statement of financial position property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation on assets is calculated using the straight -line method to allocate the difference between their original costs and their residual values over their estimated useful lives, as follows: • Furniture & equipment 7 years • Computer equipment 3 to 7 years • Leasehold improvements Term of lease The assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date. 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. Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are recognised in the statement of comprehensive income . 2025 FURNITURE & EQUIPMENT COMPUTER EQUIPMENT LEASEHOLD IMPROVEMENTS TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Opening balance 530 1,560 808 2,898 Additions 30 1,713 - 1,743 Depreciation (125) (1,199) (129) (1,453) Disposal (16) (20) (2) (38) Movement in foreign exchange 26 79 27 132 Net book value 445 2,133 704 3,282 Cost 1,131 6,780 1,460 9,371 Accumulated depreciation (686) (4,647) (756) (6,089) Net book value 445 2,133 704 3,282
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 31 5.5 PROPERTY PLANT AND EQUIPMENT (CONTINUED) 5.6 TRADE PAYABLES AND ACCRUALS Gentrack Group recognises trade and other payables initially at fair value and subsequently measured at amortised cost using the effective interest method. They represent liabilities for goods and services provided prior to the end of the financial year that are unpaid. The amount s are unsecured, non -interest bearing and are usually paid within 45 days of recognition. 5.7 EMPLOYEE ENTITLEMENTS Liabilities for salaries and wages, including non -monetary benefits, payroll taxes, long service leave, and annual leave are recognised in employee benefits in respect of employees’ services up to the reporting date. They are measured at the amounts expect ed to be paid when the liabilities are settled. Cost for non - accumulating sick leave is recognised when the leave is taken and measured at the rates paid or payable. 2024 FURNITURE & EQUIPMENT COMPUTER EQUIPMENT LEASEHOLD IMPROVEMENTS TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Opening balance 542 1,635 915 3,092 Additions 77 1,002 8 1,087 Depreciation (89) (1,090) (121) (1,300) Disposal (9) (12) (1) (22) Movement in foreign exchange 9 25 7 41 Net book value 530 1,560 808 2,898 Cost 1,227 5,001 1,424 7,652 Accumulated depreciation (697) (3,441) (616) (4,754) Net book value 530 1,560 808 2,898 2025 2024 N Z$0 0 0 N Z$0 0 0 Trade creditors 6,098 4,738 Sundry accruals 8,524 7,195 Total trade payables and accruals 14,622 11,933 2025 2024 N Z $0 0 0 N Z $0 0 0 CURRENT Long service leave 770 629 Other short-term employee benefits 21,533 22,057 22,303 22,686 NON- CURRENT Long service leave 1,414 1,104 Other employee benefits 89 2,793 1,503 3,897 Total employee entitlements 23,806 26,583
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 32 5.8 INVENTORY Inventories are stated at the lower of cost and net realisable value. Cost is calculated using a weighted average method and includes expenditure incurred to purchase the inventory and transport it to its current location. Net realisable value is the estimated selling price of the inventory in the ordinary course of business less costs necessary to make the sale. The cost of inventories consumed during the year are recognised as an expense and included in expenditure in the statement of comprehensive income. 6. CAPITAL STRUCTURE This section outlines Gentrack Group’s capital structure and details of share -based employee incentives which have an impact on Gentrack Group’s equity. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. Where any Gentrack Group company purchases the Company’s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to the Company’s equity holders until the shares are transferred outside the Gentrack Group. Ordinary shares are fully paid and have no par value. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company and rank equally with regard to the Company’s residual assets. 6.1 CAPITAL MANAGEMENT The capital structure of Gentrack Group consists of equity raised by the issue of ordinary shares in the parent company. Gentrack Group manages its capital to ensure that companies in the Group can continue as a going concern. Gentrack Group is not subject to any externally imposed capital requirement s. During 2025 4,222,110 performance rights (2024: 1,667,850) in relation to the Long Term Incentive Schemes vested, resulting in the same number of new shares being issued. Also 9,420 (2024: 24,358) shares were issued as part payment of Gentrack Group Directors fees. 6.2 SHARE-BASED PAYMENTS Gentrack Group operates equity settled, share-based payments schemes under which it receives services from employees, as consideration for equity instruments of Gentrack Group Limited. A valuation is completed for each scheme at the grant date to estimate the fair value of the performance rights granted. Management also makes estimates about the number of performance rights that are expected to vest which determines the expense recorded in the statement of comprehensive income. The share-based payments were introduced to retain, attract, incentivise and align employees with shareholder and Company objectives. Under the scheme rules, the Board at its discretion, reserves the right to classify a departing participant as a good leaver, subject to applicable performance conditions. 2025 2024 2025 2024 000 000 N Z$0 0 0 N Z$0 0 0 Ordinary Shares 103,490 101,798 200,698 196,031 Issue of new ordinary shares 4,232 1,692 5,767 4,667 107,722 103,490 206,465 200,698 SHARES ISSUED SHARE CAPITAL
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 33 6.2 SHARE BASED PAYMENTS (CONTINUED) Gentrack Group operated the following three share schemes during the year: - Senior Leadership Long Term Incentive Scheme o At the Special Shareholders meeting, held on 9th October 2023, shareholders approved the issue of up to 9,437,000 performance rights in total for the Chief Executive Officer (CEO) and senior management under the Senior Leadership Long Term Incentive Scheme in respect of the financial years ending 30 September 2024, 2025, and 2026. These pe rformance rights are subject to tenure and achieving both Earnings Per Share (EPS) and share price appreciation hurdles. The EPS hurdle is set at fixed rates for each vesting year and for the share price appreciation hurdle an incremental vesting scale applies for performance rights eligible to vest. Effective financial year 2024, for ease of reference, this new senior leadership scheme, the CEO and Senior Leadership performance rights granted after 1 October 2023, are categorised as the Executive Leadership LTI Scheme. o For Senior Leadership Long Term Incentive grants made in prior years, performance rights are subject to a combination of tenure and the share price appreciation hurdles, split evenly and that will vest after 18 months and three years respectively, dependent on achievement of the period of service and the share price appreciation hurdle. - Gentrack Long Term Incentive Scheme – This scheme is for selected key employees who are not part of the senior leadership long term incentive scheme. The performance rights vesting under this scheme are subject to the participants continuing to be employed by Gentrack Group at the end of the vesting period. - CEO Long Term Incentive Scheme – This scheme was introduced in 2020 for the CEO and the final grant under this scheme was made in October 2022. The 2021 and 2022 awards have fully vested while the 2022 award has partially vested. The remaining performance rights under this scheme are subject to a combination of tenure and share price appreciation hurdles. For accounting purposes, the fair valuation of the schemes are as follows: - Executive Leadership LTI Scheme - under this grant a weighted estimate of the number of shares expected to vest is made based on the probability of each share price appreciation hurdle being met at each vesting date. These probabilities have been derived by considering the published guidan ce (available at the date each grant is awarded) of market analysts over Gentrack’s share price and future growth. The weighted estimate assumes an 80% probability that the share price reached at vesting dates lies within the range created using this guidance. However, varying this assumption by 5% up or down does not significantly affect the accounting charge derived from this valuation model. - All other schemes - the fair value of the performance rights is determined at the grant date using the Black Scholes valuation method. The key input in the model is the share price at the time the grant offer was accepted. The fair value of the performance rights is recorded as an expense in the profit or loss over the vesting period, based on Gentrack Group’s estimate of the number of performance rights that will vest, with a corresponding entry to the share-based payment reserve within equity. During the year ended 30 September 2025 $6.3m has been recognised in the profit or loss (2024: $10.2m).
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 34 6.2 SHARE BASED PAYMENTS (CONTINUED) Below is the table of remaining outstanding performance rights at 30 September 2025. *The number of performance rights that will vest on each vesting date is dependent on meeting the performance hurdles and the share price at that date. GRANT DATE VESTING DATE TOTAL VALUE OF GRANTED PERFORMANCE RIGHTS PERFORMANCE RIGHTS GRANTED 2025 N Z $0 0 0 000 1 October 2022 Early December 2025 1,543 322 Total Senior Leadership LTI Schemes 1,543 322 1 October 2022 End of November 2025 995 292 1 October 2023 End of November 2025 846 126 1 October 2023 End of November 2026 846 126 1 October 2024 End of November 2025 1,031 78 1 October 2024 End of November 2026 1,031 78 1 October 2024 End of November 2027 1,031 78 Total Gentrack LTI Schemes 5,780 778 1 October 2022 31 October 2025 266 97 1 October 2022 Early December 2025 266 98 Total CEO LTI Schemes 532 195 1 October 2023 Early December 2025 and 2026* 6,445 Up to 4,361 Total Executive Leadership LTI Schemes 6,445 4,361 Total Performance Rights Outstanding 14,299 5,656
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 35 6.2 SHARE BASED PAYMENTS (CONTINUED) *The actual date will be dependent on the date of release of the financial statements. GRANT DATE VESTING DATE TOTAL VALUE OF GRANTED PERFORMANCE RIGHTS PERFORMANCE RIGHTS GRANTED 2024 N Z $0 0 0 000 1 October 2021 Early December 2024 266 183 1 October 2022 Early December 2025 1,672 349 Total Senior Leadership LTI Schemes 1,938 532 1 October 2021 End of November 2024 282 161 1 October 2022 End of November 2024 1,055 309 1 October 2022 End of November 2025 1,055 309 1 October 2023 End of November 2024 863 129 1 October 2023 End of November 2025 863 129 1 October 2023 End of November 2026 863 129 Total Gentrack LTI Schemes 4,980 1,167 1 October 2021 31 October 2024 157 90 1 October 2021 End of November 2024 157 90 1 October 2022 31 October 2024 266 97 1 October 2022 Early December 2024 266 97 1 October 2022 31 October 2025 266 97 1 October 2022 Early December 2025 266 98 Total CEO LTI Schemes 1,378 570 1 October 2023 Early December 2024 4,812 3,191 1 October 2023 Early December 2025 and 2026* 7,925 Up to 5,256 Total Executive Leadership LTI Schemes 12,737 8,447 Total Performance Rights Outstanding 21,032 10,715
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 36 6.2 SHARE BASED PAYMENTS (CONTINUED) PERFORMANCE RIGHTS MOVEMENTS Below is a summary of all performance rights, granted, vested and forfeited across all the equity settled share -based payments schemes operated by Gentrack Group: 6.3 DIVIDENDS During the financial year 2025, $Nil dividends were paid (2024: $Nil). 6.4 EARNINGS PER SHARE Gentrack Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the net profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares on issue during the year, excluding shares purchased and held as treasury shares. Diluted EPS is determined by adjusting the net profit attributable to ordinary shareholders and the weighted average number of ordinary shares on issue for the effects of the dilutive impact of potential ordinary shares, which comprise performance share rights granted to employees. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease EPS or increase the loss per share. GRANT DATE AVERAGE VALUE PER PERFORMANCE RIGHT NUMBER OF PERFORMANCE RIGHTS AVERAGE VALUE PER PERFORMANCE RIGHT NUMBER OF PERFORMANCE RIGHTS 000 000 As at 1 October $4.91 10,715 $2.90 3,584 Granted during the year $13.27 244 $5.32 8,858 Vested during the year $1.34 (4,222) $2.74 (1,668) Forfeited during the year $3.98 (1,081) $4.88 (58) As at 30 September $5.44 5,656 $4.91 10,715 2025 2024 2025 2024 Profit attributable to the shareholders of the company 20,870 9,546 Basic weighted average number of ordinary shares issued 107,026 103,112 Shares deemed to be issued for no consideration in respect of share-based payments 5,656 10,715 Weighted average number of shares used in diluted earnings per share 112,682 113,828 Basic earnings per share $0.20 $0.09 Diluted earnings per share $0.19 $0.08
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 37 7. TAX 7.1 INCOME TAX EXPENSE In the statement of comprehensive income, the income tax expense comprises current and deferred tax. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends. RECONCILIATION OF INCOME TAX EXPENSE The relationship between the expected income tax expense based on the domestic effective tax rate of Gentrack Group at 28% (2024: 28%) and the reported tax expense in the statement of comprehensive income can be reconciled as follows: *Share based payments arise from allowable deductions in the United Kingdom and New Zealand. **Amortisation related to intangibles created on acquisition are non -deductible for tax purposes. The intangibles amortisation and related deferred tax are amortised over 10 years. ***The tax expense for the period includes the impact of tax losses for which no deferred tax asset has been recognized. These tax losses have arisen in entities where the generation of sufficient future taxable profits to utilise the losses remains less certain. As at 30 September 202 5 Gentrack Group has $ 16.3m (2024: $14.6m) of imputation credits available for use in subsequent reporting periods. 2025 2024 N Z$0 0 0 N Z$0 0 0 INCOME TAX EXPENSE COMPRISES: Current tax expense 2,597 10,084 Deferred tax expense (3,232) (5,014) Tax expense (635) 5,070 2025 2024 N Z $0 0 0 N Z $0 0 0 Profit before tax 20,235 14,616 Taxable income 20,235 14,616 Domestic tax rate for Gentrack Group 28% 28% Expected tax expense 5,666 4,092 Non-assessable income - (471) Share based payments - deductible vesting and temporary differences* (10,759) (1,127) Non- deductible expense** 2,021 1,025 Recognition previously unrecognised losses (1,496) (306) Tax losses for which no deferred tax was recognised*** 4,196 1,293 Difference in tax rates of overseas subsidiaries (76) 223 Prior period adjustments (187) 340 Actual tax expense (635) 5,070
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 38 7.2 DEFERRED TAX ASSETS AND LIABILITIES Deferred tax is recognised , using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by Gentrack Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income tax levied by the same taxation authority on either the same taxable entity or different entities where there is an intention to settle the balance on a net basis. Additional income tax expenses that arise from the distribution of cash dividends are recognised while the liability to pay the related dividend is recognised. Gentrack Group does not distribute non -cash assets as dividends to its shareholders. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related benefits will be realised. At 30 September 2025 the Group had tax losses carried forward of $ 29.2m (2024: $16.7m) for which no deferred tax asset has been recognised. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary differences can be utilised. Management applies judgement when reviewing current business plans and forecasts to ascertain the likelihood of future taxable profits. The movement in temporary differences has been recognised in the statement of comprehensive income. Deferred tax has been recognised at a rate at which they are expected to be realised:25% for United Kingdom entities, 28% for New Zealand entities, 30% for Australian entities, 22% for Denmark entities, 21% for US entities, 17% for Singapore entity and 25% for India. Movement in temporary timing differences during the year: 2025 OPENING BALANCE TEMPORARY MOVEMENT RECOGNISED CURRENCY TRANSLATION CLOSING BALANCE N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 DEFERRED TAX ASSETS Trade and other receivables 1 (1) - - Intangible assets 1,661 565 - 2,226 Contract liabilities 1,182 25 53 1,260 Provisions for doubtful debts and sundry accruals 11,470 (2,775) 610 9,305 Losses carried forward 526 2,776 92 3,394 Total deferred tax assets 14,840 590 755 16,185 DEFERRED TAX LIABILITIES Intangible assets (2,609) 550 (275) (2,334) Other (167) (150) (18) (335) Total deferred tax liabilities (2,776) 400 (293) (2,669) Net deferred tax 12,064 990 462 13,516
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 39 7.2 DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED) 8. FINANCIAL RISK MANAGEMENT Gentrack Group is exposed to credit risk, liquidity risk and market risks which include foreign currency risk, and interest risk. This section details each of these financial risks and how they are managed by Gentrack Group. The Board of Directors has overall responsibility for the establishment and oversight of Gentrack Group’s risk management framework. Gentrack Group’s risk management policies are established to identify and analyse (amongst other risks) the financial risks faced by Gentrack Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Gentrack Group’s activities. 8.1 CREDIT RISK Credit risk is the risk of financial loss to Gentrack Group if a customer or counter party to a financial instrument fails to meet its contractual obligations, and it arises principally from Gentrack Group’s trade receivables from customers in the normal course of business. Gentrack Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The credit worthiness of a customer or counter party is determined by several qualitative and quantitative factors. Qualitative factors include external credit ratings (where available), payment history and strategic importance of customer or counter party. Quantitative factors include transaction size, net assets of customer or counter party, and ratio analysis on liquidity, cash flow and profitability. In relation to trade receivables and contract assets, it is Gentrack Group’s policy that all customers who wish to trade on terms are subject to credit verification on an ongoing basis with the intention of minimising bad debts. The nature of Gentrack Group’s trade receivables is represented by regular billing of customers based on the contractual payment terms. Gentrack Group has an impairment provision that represents its estimate of future incurred losses in respect of trade and other receivables. The impairment provision consists of the expected credit loss provision in accordance with NZ IFRS 9 and a specific doubtful debt provision is used where there is internal and external evidence that indicates a trade receivable is impaired. The carrying amount of Gentrack Group’s financial assets represents the maximum credit exposure as summarised in the table below: 2024 OPENING BALANCE TEMPORARY MOVEMENT RECOGNISED CURRENCY TRANSLATION CLOSING BALANCE N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 DEFERRED TAX ASSETS Trade and other receivables (1) 2 - 1 Intangible assets 1,862 (201) - 1,661 Contract liabilities 1,237 (73) 18 1,182 Provisions for doubtful debts and sundry accruals 6,551 4,863 56 11,470 Losses carried forward 1,471 (983) 38 526 11,120 3,608 112 14,840 DEFERRED TAX LIABILITIES Intangible assets (3,957) 1,484 (136) (2,609) Other (86) (79) (2) (167) (4,043) 1,405 (138) (2,776) Net deferred tax 7,077 5,013 (26) 12,064
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 40 8.1 CREDIT RISK (CONTINUED) *Current includes contract assets. Gentrack Group’s trade receivables and contract assets are not exposed to any significant credit exposure to any single counterparty or group of counterparties having similar characteristics. Trade receivables and contract assets consist of several custome rs in various geographical areas. Based on historic information about customer default rates, management considers the credit quality of trade receivables that are not past due or impaired to be good. Sundry receivable and prepayments comprise of prepaid e xpenses and lease bonds that do not carry credit risk. As at 30 September 202 5 and 2024 there are no significant concentrations of credit risk for financial assets designated as at amortised cost or at fair value. The carrying amount reflects Gentrack Group’s maximum exposure to credit risk for these financial assets. Judgement has been applied to the recovery of all trade receivables and contract assets, with management confirming that all net carrying amounts are deemed to be recoverable and not impaired. The credit risk for cash and cash equivalents is considered negligible since the counterparties are highly reputable financial institutions with high quality external credit ratings. 8.2 MARKET RISK Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect Gentrack Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and co ntrol market risk exposures within acceptable parameters, while optimising the return on risk. FOREIGN CURRENCY RISK Gentrack Group is exposed to currency risk on transactions that are denominated in a currency other than the functional currency of Gentrack Group (NZD), primarily the following currencies Australian Dollar (AUD), Pound Sterling (GBP), EURO (EUR), US Dollar (USD), Danish Kroner (DKK) , Singaporean Dollars (SGD), Saudi Riyal (SAR) and Indian Rupees (INR). In 2024, trades in INR were not significant for disclosure. Gentrack Group’s exposure to foreign currency risk at the reporting date was as follows (all amounts are denominated in New Zealand Dollars): GROSS IMPAIRMENT PROVISION GROSS IMPAIRMENT PROVISION N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Current* 43,268 (112) 31,025 (93) Past due 1-60 days 3,363 (50) 7,423 (113) Past due 61-120 days 1,132 (57) 921 (30) Past due 121-180 days 377 (57) 6 (1) Past due over 180 days 1,294 (1,294) 1,047 (1,047) 49,434 (1,570) 40,422 (1,284) 2025 2024
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 41 8.2 MARKET RISK (CONTINUED) The following table summarises the sensitivity of total comprehensive income and equity with regards to Gentrack Group’s financial assets and financial liabilities affected by the NZD exchange rate against AUD, GBP, EUR, USD, DKK, SGD, SAR, and INR with all other aspects being equal. It assumes a +/ -10% change in the NZD to the currency exchange rate for the year ended 30 September 202 5 (2024: 10%). These +/-10% sensitivities have been determined based on the average market volatility in exchange rates in the preceding 12 months . Gentrack Group’s exposure to foreign exchange rates varies during the year depending on the volume of foreign currency transactions. Even so, the analysis above is representative of Gentrack Group’s exposure to market risk. AUD GBP EUR USD DKK SGD SAR INR 2025 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 Cash and cash equivalents 12,450 52,652 3,090 1,507 157 2,964 6,770 312 Trade and other receivables 7,556 26,899 1,903 605 729 1,392 2,826 697 Trade and other payables (863) (6,521) (733) (2,240) (202) (535) (977) (460) Net exposure 19,143 73,030 4,260 (128) 684 3,821 8,619 549 2024 Cash and cash equivalents 10,622 36,189 2,317 7,092 167 1,939 1,144 Trade and other receivables* 6,602 27,281 - - 972 2,160 3,349 Trade and other payables (3,282) (2,937) (416) (116) (152) (744) - Net exposure 13,942 60,533 1,901 6,976 987 3,355 4,494 AUD GBP EUR USD DKK SGD SAR INR N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 2025 10% strengthening in NZD (1,740) (6,639) (387) 12 (62) (347) (784) (50) 10% weakening in NZD 2,127 8,114 473 (14) 76 425 958 61 2024 10% strengthening in NZD (1,267) (5,503) (173) (634) (90) (305) (409) - 10% weakening in NZD 1,549 6,726 211 775 110 373 499 - T OT A L C OM P R EH EN SIVE IN C OM E / EQUIT Y
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 42 8.3 LIQUIDITY RISK Liquidity risk is the risk that Gentrack Group will not be able to meet its financial obligations as and when they become due and payable. Gentrack Group’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they become due and payable, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Gentrack Group’s reputation. Gentrack Group has sufficient cash to meet its requirements in the foreseeable future. The following table details Gentrack Group’s contractual maturities of financial liabilities, as at the reporting date: 8.4 INTEREST RATE RISK Gentrack Group’s interest rate risk primarily arises from short term bank borrowing and cash. Borrowings and deposits at variable interest rates expose Gentrack Group to cash flow interest rate risk. Borrowings and deposits at fixed rates expose Gentrack Group to fair value interest rate risk. The following tables detail the current interest rate of the interest-bearing financial assets and liabilities and interest rate repricing profile. ON DEMAND LESS THAN 3 MONTHS 3 TO 1 2 MONTHS 1 TO 5 YEARS >5 YEARS TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 2025 Trade payables - 6,098 - - - 6,098 Lease liabilities - 1,071 3,213 19,121 1,924 25,328 - 7,169 3,213 19,121 1,924 31,427 2024 Trade payables - 4,738 - - - 4,738 Lease liabilities - 951 2,854 14,018 2,868 20,691 - 5,690 2,854 14,018 2,868 25,430 2025 FLOATING FIXED UP TO 3 MONTHS FIXED UP TO 6 MONTHS FIXED UP TO 5 YEARS TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 ASSETS Cash on demand 39,315 - - - 39,315 Term deposit - 41,942 3,559 - 45,501 Total exposure 39,315 41,942 3,559 - 84,816 EFFECTIVE INTEREST RATE +1 % EFFECTIVE INTEREST RATE - 1 % N Z $0 0 0 N Z $0 0 0 Cash on demand 397 (397) Term deposit 460 (460) Total exposure 857 (857)
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 43 8.4 INTEREST RATE RISK (CONTINUED) 8.5 FINANCIAL INSTRUMENTS Gentrack Group’s financial assets are measured at amortised cost. Gentrack Group’s financial assets are held within a business model whose objective is to hold the financial asset to collect contractual cash flows and the financial asset gives rise to contractual cash flows on specified dates that are payments of principal and interest on the principal outstanding. Gentrack Group’s financial liabilities are measured at amortised cost. Gentrack Group’s financial assets and liabilities by category are summarised as follows: CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise of cash at bank and on hand and the carrying amount is equivalent to fair value. TRADE RECEIVABLES These assets are short term in nature and are reviewed for impairment; the carrying value approximates their fair value. TRADE PAYABLES These liabilities are mainly short term in nature with the carrying value approximating the fair value. FAIR VALUES Gentrack Group’s financial instruments that are measured after initial recognition at fair values are grouped into levels based on the degree to which their fair value is observable: • Level 1 – fair value measurements derived from quoted prices in active markets for identical assets. • Level 2 – fair value measurements derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – fair value measurements derived from valuation techniques that include inputs for the asset or liability which are not based on observable market data. There have been no transfers between levels or changes in the valuation methods used to determine the fair value of Gentrack Group’s financial instruments during the period. As at 30 September 202 5 Gentrack Group has no level 3 financial instruments (202 4: $Nil). 2024 FLOATING FIXED UP TO 3 MONTHS FIXED UP TO 6 MONTHS FIXED UP TO 5 YEARS TOTAL N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 N Z $0 0 0 ASSETS Cash on demand 33,285 - - - 33,285 Term deposit - 33,394 - - 33,394 Total exposure 33,285 33,394 - - 66,679 EFFECTIVE INTEREST RATE +1 % EFFECTIVE INTEREST RATE - 1 % N Z $0 0 0 N Z $0 0 0 Cash on demand 336 (336) Term deposit 337 (337) Total exposure 674 (674)
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 44 8.5 FINANCIAL INSTRUMENTS (CONTINUED) FINANCIAL INSTRUMENTS BY CATEGORY 9. OTHER INFORMATION 9.1 LEASE ASSETS AND LEASE LIABILITIES RECOGNITION AND MEASUREMENT OF GENTRACK GROUP LEASING ACTIVITIES Gentrack Group predominantly leases property for fixed periods of 1 -12 years and may have extension options. These extension options are usually at the discretion of Gentrack Group and are included in the measurement of the lease asset if management intends to exercise the extension. Lease terms are negotiated on an individual basis and contain a variety of terms and conditions. However, these lease agreements do not impose any covenants. Lease amendments relate to short -term lease extensions. Leases are recognised as a right of use asset (lease asset) and a corresponding lease liability at the date at which the leased asset is available for use. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period and recorded as financ ing activities in the statement of cash flows. The lease asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight -line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments (including in-substance fixed payments), less any lease incentives receivable • variable lease payments that are based on an index or a rate • amounts expected to be payable by the lessee under residual value guarantees • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the Group’s incremental borrowing rate, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Lease assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs, and • restoration costs. Key movements related to the lease assets and lease liabilities are presented below: 2025 2024 N Z $0 0 0 N Z $0 0 0 FINANCIAL ASSETS MEASURED AT AMORTISED COST Cash and cash equivalents 84,816 66,679 Trade receivables and contract assets 47,512 39,047 132,328 105,726 FINANCIAL LIABILITIES MEASURED AT AMORTISED COST Trade payables (6,098) (4,738) Lease liabilities (16,276) (17,155) (22,374) (21,894)
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 45 9.1 LEASE ASSETS AND LEASE LIABILITIES (CONTINUED) LEASE ASSETS LEASE LIABILITIES LEASE EXPENSES 2025 2024 N Z $0 0 0 N Z $0 0 0 Balance at 1 October 12,823 12,637 Additions 1,192 2,136 Terminations - - Amendments (143) - Depreciation charges (2,591) (2,183) Exchange differences 614 233 Lease assets at 30 September 11,895 12,823 Property 11,895 12,823 Lease assets at 30 September 11,895 12,823 2025 2024 N Z $0 0 0 N Z $0 0 0 Balance at 1 October 17,155 17,306 Additions 1,192 2,136 Terminations - - Amendments (155) - Payments (3,711) (3,642) Accretion of interest 1,073 1,108 Exchange differences 722 247 Lease liabilities at 30 September 16,276 17,155 Less than one year 3,640 2,738 One to five years 10,602 11,821 More than five years 2,034 2,596 Lease liabilities at 30 September 16,276 17,155 2025 2024 N Z$0 0 0 N Z$0 0 0 Depreciation charges 2,591 2,183 Finance charges 1,073 1,108 Lease expenses 3,664 3,291
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 GENTRACK FINANCIAL STATEMENTS / 46 9.2 AUDITORS REMUNERATION The table below sets out the amounts paid to Gentrack Group’s auditors, EY, and non -EY auditors during the year ended 30 September 202 5. 9.3 KEY MANAGEMENT AND RELATED PARTIES Key management personnel are defined as those persons having authority and responsibility for planning, directing, and controlling the activities of Gentrack Group, directly or indirectly, and include the Directors, the Chief Executive, and their direct reports. The following table summarises remuneration paid to key management personnel. Gentrack Group’s Directors are also directors of other companies. Some of the Directors and key management personnel are shareholders in Gentrack Group Limited. Gentrack Group does not transact with the Directors or key management personnel, and their related parties, other than in their capacity as Directors, consultant s, and employees. Refer to note 2.4 for more information on other related parties. 9.4 OTHER DISCLOSURES CAPITAL COMMITMENTS There are no capital commitments at 30 September 2025 (2024: $Nil). CONTINGENCIES BNZ has provided guarantees of $0.4m (2024: $0.4m) on behalf of the Gentrack Group, these guarantees are in place for compliance, property leases and credit card programs. EVENTS AFTER BALANCE DATE There were no material events after balance date. On 21 November 2025, the Gentrack Group Board determined that no final dividend will be pai d out for the 2025 financial year (2024: nil). 2025 2024 N Z $0 0 0 N Z $0 0 0 EY Audit of the consolidated financial statements 464 395 Review of the interim consolidated financial statements 90 90 Other assurance services and other agreed-upon procedures engagements 5 7 Total fees for services provided by EY 559 492 Non EY audit firm fees: - Total audit and review related services 41 56 - Other assurance services, agreed upon procedures, accounting advise and taxation & compliance services 6 69 47 125 Total fees paid to auditor(s) 606 617 Total fees for services provided by non-EY audit or review firm 2025 2024 N Z$0 0 0 N Z$0 0 0 Short-term employee benefits 8,452 7,332 Share-based payments 3,465 5,544 Directors fees 765 677 Remuneration paid to Key Management Personnel 12,682 13,553
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CORPORATE DIRECTORY GENTRACK FULL YEAR FINANCIAL STATEMENTS / 47 REGISTERED OFFICE Gentrack Group Limited 17 Hargreaves Street, St Marys Bay, Auckland 1011, New Zealand Phone: +64 9 966 6090 Level 15, 628 Bourke Street, Melbourne, VIC 3000 Australia Phone: +61 3 9867 9100 POSTAL ADDRESS PO Box 3288, Shortland Street, Auckland 1140 New Zealand NEW ZEALAND INCORPORATION NUMBER 3768390 AUSTRALIAN REGISTERED BODY NUMBER (ARBN) 169 195 751 DIRECTORS Andy Green, Chair Darc Rasmussen Gary Miles Gillian Watson Fiona Oliver Stewart Sherriff COMPANY SECRETARY Anna Ellis AUDITOR EY EY Building, 2 Takutai Square, Britomart Auckland 1010 Phone: +64 9 377 4790 LEGAL ADVISERS BELL GULLY Level 14 Deloitte Centre 1 Queen Street Auckland 1010 BANKERS BANK OF NEW ZEALAND ANZ LIMITED HSBC PLC NORDEA DENMARK A/S SHARE REGISTRAR NEW ZEALAND MUFG PENSION & MARKET SERVICES Level 30, PwC Tower, 15 Customs Street West, Auckland 1010 PO Box 91 976, Auckland 1142 Phone: +64 9 375 5998 Facsimile: +64 9 375 5990 Email: enquiries@linkmarketservices.com AUSTRALIA MUFG PENSION & MARKET SERVICES Level 41, 161 Castlereagh Street, Sydney, NSW 2000 Locked Bag A14, Sydney South, NSW 1235 Phone: +61 1300 554 474 Facsimile: +2 9287 0303 Email: enquiries@linkmarketservices.com
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