Announcement PDF Appendix 4E Preliminary final report 1. Company details Name of entity: Atturra Limited Reporting period: For the year ended 30 June 2024 ABN: Previous period: 34 654 662 638 For the year ended 30 June 2023 2. Results for announcement to the market $’000 Revenue from ordinary activities up 36.5% to 243,352 Underlying Earnings Before Interest and Tax (Underlying EBIT) up 1.8% to 19,030 Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (Underlying EBITDA) up 21.2% to 25,462 Profit from ordinary activities after tax attributable to the owners of Atturra Limited down 4.5% to 9,784 Profit for the year attributable to the owners of Atturra Limited down 4.5% to 9,784 A reconciliation of statutory profit after tax to Underlying EBITDA is disclosed in the table below. Dividends No dividends were paid, recommended, or declared during the current financial year to Atturra Limited’s shareholders. During the current financial year, a dividend of $265,000 (2023: $513,000) was paid to the minority shareholders of Noetic Group Pty Ltd, with the remainder being paid to Atturra Holdings Pty Ltd and FTS NHC Pty Ltd that was eliminated on consolidation. Comments The profit for Atturra Limited after providing for income tax and non-controlling interest amounted to $9,784,000 (30 June 2023: $10,241,000). Underlying EBITDA and other adjustments as disclosed is a financial measure which is not prescribed by the Australian Accounting Standards Board (AASB) and represents the profit under AASB adjusted for specific items, including capital raising, share based payments, merger and acquisition (M&A) transaction costs and M&A related retentions. The Directors consider Underlying EBITDA to be one of the key financial measures of Atturra Group. Atturra Appendix 4E i Appendix 4E The following table summarises key reconciling items between statutory profit after-tax and Underlying EBITDA: Consolidated 30 June 2024 $’000 30 June 2023 $’000 Profit after income tax 9,731 10,643 Add: Interest expense 1,823 1,110 Add: Income tax expense 3,332 5,308 Less: Interest income (768) (490) Reported EBIT 14,118 16,571 Share-based payments 1,086 1,155 Revaluation of contingent consideration (506) - M&A transaction and Capital raising costs 2,061 570 Gain on bargain purchase (347) - M&A related retentions 692 399 Integration costs 1,926 - Underlying EBIT 19,030 18,695 Depreciation 3,950 1,846 Amortisation 2,482 208 - 260 25,462 21,009 Reporting period Cents Previous period Cents 6.89 7.40 Depreciation included in cost of sales Underlying EBITDA 3. Net tangible assets Net tangible assets per ordinary security Net tangible assets per ordinary security have been calculated by excluding intangible assets, and the net right-of-use assets and lease liabilities of $(1,074,000) (30 June 2023: ($551,000)). ii Atturra Appendix 4E Appendix 4E 4. Control gained over entities During the year, Atturra Group gained control over the following entities: Share capital acquired % Acquisition date Entities 29/09/2023 Regional IT Newcastle Pty Ltd 100% 29/09/2023 Sabervox Pty Ltd 100% 29/09/2023 Techtonics Group Limited 100% 11/12/2023 Cirrus Networks Holdings Pty Ltd 100% 11/12/2023 Cirrus Networks (WA) Pty Ltd 100% 11/12/2023 Cirrus Networks (ACT) Pty Ltd 100% 11/12/2023 Cirrus Networks (Victoria) Pty Ltd 100% 11/12/2023 L7 Solutions Pty Ltd 100% 11/12/2023 Cirrus Networks (Canberra) Pty Ltd 100% 11/12/2023 Liberty Technologies Pty Ltd (exited the Group on 14 June 2024) 100% 11/12/2023 Boab Energy Pty Ltd 100% 11/12/2023 UREA Corp of Australia Pty Ltd (exited the Group on 14 June 2024) 100% Refer to note 34 to the consolidated financial statements for further details. 5. Loss of control over entities Date of Disposal Entities 14/06/2024 Liberty Technologies Pty Ltd 14/06/2024 UREA Corp of Australia Pty Ltd 6. Dividends No dividends were paid, recommended, or declared during the current financial year to Atturra Limited shareholders. During the current financial year, a dividend of $265,000 (2023: $513,000) was paid to the minority shareholders of Noetic Group Pty Ltd, with the remainder being paid to Atturra Holdings Pty Ltd and FTS NHC Pty Ltd that was eliminated on consolidation. There were no further dividends declared or paid, for the current financial year. 7. Dividend reinvestment plans Not applicable. Atturra Appendix 4E iii Appendix 4E 8. Details of associates Reporting entity’s percentage holding Name of associate Protegic Pty Ltd Contribution to profit Reporting period % Previous period % Reporting period $’000 Previous period $’000 49.00% 49.00% 116 72 116 72 Group’s aggregate share of associates entity’s profit Profit from ordinary activities after income tax 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10.Audit qualification Details of audit dispute or qualification (if any): The financial statements were subject to an audit by the auditor and the audit report is attached as part of the Annual Report. 11. Attachments Details of attachments (if any): The Annual Report of Atturra Limited for the year ended 30 June 2024 is attached. 12. Signed Shan Kanji Chairman Sydney Date: 23 August 2024 iv Atturra Appendix 4E Annual Report 2O24 Acknowledgement of Country Atturra acknowledges the Traditional Custodians of Country throughout Australia and their connections to Land, Sea and Community. We pay our respects to Elders past and present and extend that respect to all First Nations Peoples across Australia and the Torres Strait Islands. Contents Letter to Shareholders 2 Business Overview 4 Client Showcase 6 Board of Directors and Key Management 8 ESG Highlights 10 General Information 12 Directors’ Report 13 Auditor’s Independence Declaration 31 Financial Report 32 Notes to the Consolidated Financial Statements 37 Consolidated Entity Disclosure Statement 84 Directors’ Declaration 86 Independent Auditor’s Report 87 Shareholder Information 92 Corporate Directory 95 Atturra Limited ABN 34 654 662 638 We’ll lead you there. Atturra Annual Report 2024 1 Letter to Shareholders I’m proud to share our achievements over the last 12 months in Atturra’s Annual Report. Key Milestones One of Atturra’s key growth areas is continuing to expand our service offerings and industry position through acquisitions. Atturra completed the acquisitions of Silverdrop in August 2023, Sabervox Pty Ltd (Sabervox) in September 2023, and Cirrus Networks Holdings Limited (Cirrus) in December 2023. Whilst Silverdrop added specialist capability in HR and payroll services, the Cirrus and Sabervox acquisitions have significantly boosted Atturra’s managed services capability and collectively this has strengthened the foundation on which our industry and technology strategies are built. Together they have changed Atturra’s revenue mix, significantly increasing the share of predictable, recurring revenue. Our applications and infrastructure expertise and PMO capability enabled us to win a strategic multi-year deal in the mining and resources sector, and this is expected to generate $30 million in revenue over the next three years. Our strength in the local government sector enabled us to win a transformational deal valued at $8 million over three years. We also signed over 40 new federal government contracts across multiple departments and agencies including Departments of Defence, Home Affairs, Finance, and Treasury, as well as the Australian Signals Directorate, Australian Criminal Intelligence Commission and Australian Financial Security Authority, showing confidence in Atturra’s sovereign capabilities. 2 Atturra Annual Report 2024 Financial Highlights We’re extremely proud that even with the difficult market in Canberra, Atturra has managed to again overachieve our minimum benchmark of 20% revenue growth and 10.5% underlying EBITDA. Atturra has delivered FY24 revenue of $243.4 million, an increase of 36.5% compared to the pcp. Underlying EBITDA of $25.5 million is in line with previous guidance. This strong revenue growth reflects the successful integration of acquisitions and is a testament to Atturra’s ability to continue to execute against its strategy. Statutory EBIT of $14.1 million, down 15% on pcp primarily due to an increase in one‑off M&A costs and acquisition-related amortisation compared to pcp. In fact, since our listing on the ASX in 2021, we have exceeded our annual growth target of 20% and underlying EBITDA of 10.5% each year and continue to attain or outperform this key growth promise. Focus on our People Our vision of being Australia’s leading advisory and IT solutions provider continues to gain traction. Our total employee base is now more than 900 team members, and I’m pleased to see many high performing teams amongst this base across various areas of the business. • Industries without a clear market leader so that Atturra can become a service provider of choice. Specifically, Manufacturing, Local Government, and Education, where we rapidly grew to 300 schools in H1 FY24. • Building scale through high-growth industries to develop sustainable and long-term relationships. I’m proud of how all employees have embraced our One Atturra approach and culture. We have successfully integrated the managed services acquisitions into one strong-performing business unit, and our people’s resilience and adaptability have enabled the rapid scale of our managed services capabilities. Our technology strategy is to focus on: As we expand, so does the diversity of our workforce — enriching our business through different experiences and perspectives. Through multiple initiatives, we strive to promote gender equality, diversity and inclusion within Atturra. Our efforts in this area have seen us win a Merit Award in the TechDiversity Awards business category this year, and saw us receive two finalist nominations in the Women in ICT Awards, in the Innovation and Shining Star categories. • Becoming the dominant provider of specialist technologies such as webMethods, OpenText, and QAD. For example, we are the only ANZ-based OpenText platinum Certified Partner. Integrating AI into our solutions We recognise the value of all forms of AI capabilities and are acting on the opportunity it brings to improve business outcomes and community benefits. We are working closely with our technology partners to integrate and optimise AI models, data and infrastructure to deliver solutions to our clients that accelerate time to value. Progressing towards our vision We remain steadfast in our goal to become Australia’s leading advisory and IT solutions provider, with high engagement across technology, industries, employees, and clients. Our industry strategy is to focus on: • Expanding into industries with a high barrier to entry, for example, Defence, requiring security clearances, and driving client retention. • High-growth technologies so we can grow in lockstep with them. For example, Atturra has the largest team of onshore Boomi consultants and is the number one Boomi Partner APJ. • Expanding client adoption of AI and other smart technologies to reduce data management costs. Looking ahead The pivot to managed services is set to increase the number of multi-year deals, meaning we can build stronger client relationships and have a higher chance of securing wins in the Business Applications space. This will further increase the share of predictable, recurring revenue and validate the inherent strength and relevance of our strategy. Our recent acquisition of Brisbane-based advisory business Exent is also set to provide great opportunities. It will allow us to move beyond the challenging Canberra market and have a national presence. Instead of relying on defence and government work, Atturra will be able to secure advisory work in the commercial sector. Thank you for your support and for joining us in another year of transformational change for Atturra. We look forward to continuing to build our exciting future together. Shan Kanji Chairman Atturra Annual Report 2024 3 Business Overview Atturra is an Australian, ASX-listed advisory and IT solutions business. We’re headquartered in Sydney and have over 900 employees across Australia, New Zealand, Singapore and Hong Kong. We offer end-to-end digital transformation services for our clients. Partnering with other leading global technology providers, we offer scalable, expert solutions. Atturra helps clients see exciting possibilities through technologies that work today and into the future. 2023-24 Highlights Client Metrics Key Industries Client Metrics FY24 Revenue by Industry 23% Federal & State 21% 23% 21% Government 11% 11% 6% 6% 18% Defence 18% 13% 5% 4% ■ Defence and Federal Government ■ State and Local Government ■ Utilities Defence and Federal Government ■ Financial Services State and Local Government ■ Manufacturing Utilities ■ Education ■ EnergyServices and Resources Financial ■ Other Manufacturing ■ ■ ■ ■ ■ ■ Education ■ Energy and Resources ■ Other Key Acquisitions OpenText August 2023 • APAC Regional Partner of the Year • Silverdrop Assets & Business Acquisition Smartsheet • APJ MVP Mimecast Financial Services • Australian Acceleration Partner of the Year HPE 13% 5% 4% Awards Education • Service Partner of the Year HP Local Government • Education Partner of the Year AFR Manufacturing • Australian Financial Review Fast 100 List Boomi Utilities • APJ Partner of the Year • ANZ Partner of the Year Resources • APJ Practice Excellence Partner of the Year Pure Storage • APJ Partner of the Year 4 Atturra Annual Report 2024 September 2023 • Sabervox Pty Ltd December 2023 • Cirrus Networks Holdings Limited Atturra’s Annual Reporting suite includes: 2024 full-year financial results Corporate governance documents 2024 Sustainability Report MARKET SIZE $48.8 billion Estimated IT services spend in Australia in 2024 Major Partnerships STAFF 900+ Employees SECURITY CLEARANCE 300+ Number of security-cleared staff NEW CLIENTS 80+ New clients during FY24 Atturra Annual Report 2024 5 Client Showcase Brisbane Grammar School Bass Coast Shire Council Brisbane Grammar School aspires to be the leading school for boys in Australia, and to achieve this they have a strong digital transformation agenda. A big part of this agenda is the work Atturra have been doing with the school in delivering a new Student Information System (SIS), called Scholarion. Atturra helped progressive regional council, Bass Coast Shire advance its transformation strategy through a commercially competitive, high-quality IT solutions partnership. It’s the ultimate digital assistant for their school, a platform that organises and manages all the important information about their students, teachers, and school activities in one easy-to-use system. The new SIS will replace a legacy, on-premise system housing 42 bespoke applications, which couldn’t provide them with up-to-date and reliable data. As well as supporting Brisbane Grammar’s strategic imperative around digital transformation and their growth agenda, it will allow them to remain competitive and enhance the collaboration and productivity of their people. The school is working with Atturra to offer the SIS modules to other educational institutions. Schools that lack the resources to develop their own SIS, but still need to streamline operations and ease the administrative load on their educators. “ The new SIS is a key anchor for our growth and digital innovation. Atturra is a valuable partner, and it’s great to see them meeting our set delivery timeframes for services and solutions that will underpin our SIS and digital ways of working for many years to come. ” Alexis Hill Chief Information Officer Brisbane Grammar School 6 Atturra Annual Report 2024 Since 2017, Atturra’s local support has enabled the council to adapt and respond to change and challenges while ensuring the best value for their taxpayers. Infrastructure, systems and processes have been uplifted, ICT management and governance has been enhanced, and visibility of their environment has been improved. Atturra’s Managed Services supports and maintains reliable and cost-effective computing systems that reduce the risk of bugs and cyber breaches. “ We value the Atturra teams’ in-depth knowledge and retained IP of our environment. It enables us to reduce our commercial and delivery risk. Atturra’s client-first attitude, agility and responsiveness to our requests have only strengthened the relationship over the years. They are an asset to our team and give us confidence we can deliver on our responsibilities to the citizens of Bass Coast Shire. ” Keith Ludowyk Manager Transformation and Technology, Bass Coast Shire Council Synergy Western Australia’s largest integrated electricity generator and energy retailer has been able to improve its user experience with Atturra’s AwardWinning OpenText solution. Through a creative and collaborative approach, Atturra combined the management of over 250,000 drawings and technical documents into one system – OpenText. The team created prebuilt searches to improve searchability and then applied filters within the OpenText environment. Because the solution was simple and effective, no complex development or system training was required. The drawing portal solution has enabled Synergy to work more efficiently across sites, improving crosscollaboration efforts. The experience for daily onsite users has been dramatically enhanced, and the solution has been embraced by all stakeholders, particularly Synergy’s site leadership teams who supported this innovative project from the outset. “ Our partner Atturra helped us implement a drawing management portal. It turned out the solution was using the OpenText product out of the box. ” Debbie Cutts Manager of Enterprise Information Management, Synergy Atturra Annual Report 2024 7 Board of Directors and Key Management Shan Kanji Stephen Kowal Nicole Bowman Non-Executive Chairman / Non-Independent CEO & Executive Director / Non‑Independent Non-Executive Director / Independent Shan Kanji is the Non-Executive Chairman of Atturra. Shan has spent more than 15 years as a senior business leader with a proven track record of running scale diversified and complex industrial and technology businesses in Australia and New Zealand. He has extensive experience with start-ups in technology, property development, manufacturing and other sectors. Stephen Kowal is the CEO and Executive Director of Atturra. Stephen has been the CEO since early 2019 and, prior to his appointment, has held senior executive and nonexecutive positions in the IT and consultancy sectors since 2001. Prior to joining Atturra, Stephen led sales for the Australian and New Zealand division for DXC Technology, a US multinational business-to-business IT services provider. Nicole is an experienced leader, nonexecutive director and lawyer whose leadership career has spanned over two decades across industries as diverse as mining, finance, sport and manufacturing, both in Australia and internationally. Shan was instrumental in the formation of, and growth in, Atturra and its predecessor organisations. Shan is on the Board of the Australian Steel Institute, the nation’s peak body representing the Australian manufactured steel supply chain. Shan holds a Bachelor of Laws and a Bachelor of Commerce from the University of NSW and is a practising lawyer and the Principal of Kanji & Co. Stephen is highly experienced across the insurance, banking, government, and natural resources sectors, holding several Chief Information Officer roles within the US, Chile, and Australia. Stephen holds a Bachelor of Science from the University of NSW, a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia (FINSIA), and Diploma of Insurance from the Australian and New Zealand Institute of Insurance and Finance (ANZIF). ANZIF awarded Stephen the PC Wickens award in 2015. Stephen is a Fellow of the Governance Institute of Australia (GIA), Fellow of FINSIA, Senior Associate of ANZIF and a member of the Australian Institute of Company Directors (AICD). 8 Atturra Annual Report 2024 In addition to her executive and legal experience, Nicole spent a combined total of seven years as a non-executive director of ASX-listed mining and exploration companies Blackthorn Resources Limited, and Intrepid Mines Limited. During this period Nicole chaired each of the Audit and Risk Committee and the Nomination and Remuneration Committee in turn. Nicole also spent 5 years on the Board of the charity Dress for Success Sydney Inc. and is the founder of its Illawarra branch. In 2019 she was appointed the Australia Day Ambassador for Wollongong in recognition of her philanthropic work. In 2019, Nicole established her own leadership practice and designed a bespoke leadership program, focused on coaching and training leaders and teams to enable them to achieve exceptional results using readily implementable and practical tools, insights and skills. Nicole holds a Bachelor of Economics and Bachelor of Laws (Hons) from the University of Sydney, a Graduate Certificate in E-Commerce from the University of New England and is a member of the AICD. Jonathan Rubinsztein Herb To Kunal Shah Non-Executive Director / Independent Chief Financial Officer Company Secretary Jonathan, a seasoned CEO with a track record of building world class global technology companies and leading high-performance teams in the technology sector, has been a Non-Executive Director of Atturra since 2021. Herb To is the CFO of Atturra. He has held CFO roles in the IT, Telecoms, professional services and media industries for over 25 years across Australia, North America and the South Pacific. Kunal Shah is the Company Secretary. Kunal has over 23 years of financial experience in the technology, manufacturing, and construction industries. Kunal has co-ordinated and assisted in numerous corporate transactions including acquisitions, divestments, and business restructures. Jonathan is currently the Chief Executive Officer at Nuix, an ASXlisted global company and a leading provider of investigative analytics and intelligence software with a vision of being a Force for Good and Finding Truth in a Digital Age. Previously, Jonathan was Managing Director and CEO of Infomedia Ltd, an ASX-listed SaaS company. Prior to that role, Jonathan was CEO and founding shareholder at UXC Red Rock Consulting, where he was instrumental in growing the business from a start-up to over 700 people across 13 offices in Australia, New Zealand, India, and Singapore. Jonathan was also a Founder and Director of RockSolid SQL, a company that built monitoring and automated data management software for over 18,000 databases globally. Over his career, Herb has been the CFO of ASX-listed companies and held divisional executive positions with global multinational corporations. As CFO at Kantar ANZ, Herb oversaw the successful merger of Kantar with the WPP AUNZ Data Investment Management Group. Herb is a Chartered Accountant, a Chartered Professional Accountant, and a Chartered Business Valuator. He holds a Bachelor of Accounting and Finance (Hons) from the University of Waterloo and a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia (FINSIA). Kunal holds a Bachelor of Commerce from Gujarat University and a Master of Business in Accounting from the University of Technology, Sydney. Kunal is an Affiliate member of the Governance Institute of Australia. Jonathan is an active member of YPO, a Global Leadership Community of CEOs and alongside his wife and three daughters, dedicates holiday time to working at the Missionvale charity in South Africa. Atturra Annual Report 2024 9 ESG Highlights Sustainability approach 1 Over the last 12 months, Atturra has continued on its growth trajectory through both organic growth and acquisitions of companies aligned to our business strategy. An important part of this process includes incorporating newly acquired businesses into our ESG planning. This will enable us to remain sustainably competitive, which is essential if we want to remain at the forefront of Australia’s technology industry. Our sustainability behaviours are aligned to the following five pillars: 10 Atturra Annual Report 2024 Ethics and governance We continue to integrate our company values throughout all business areas, including newly acquired businesses, defining and clarifying the behaviours we expect. Our business operations are supported by a strong Corporate Governance framework overseen by the Board of Directors. Employees have access to tools for raising concerns, and we conduct regular internal audits to ensure compliance. 2 People and culture We have focused on keeping our promises to our people by uplifting our organisational learning and development and empowering employees to better manage and track their career growth. We’ve also become more intentional about workplace adjustments that help employees feel included and able to perform at their best. Over 25% of employees have voluntarily completed a neurodiversity e-learning module, which has led to greater acceptance. Our staff are 18% more engaged in peer-topeer recognition and collectively we have saved 11% more on retail purchases through our Elevate discount portal. 3 Protecting our workplace and clients Atturra has doubled down on Business Continuity and Cyber Security by adopting a Defence-in-Depth strategy. This integrates people, technology, and operational capabilities, layering multiple security measures that protect our users and assets and adhere to frameworks such as ISO 27001: Information Security Management Systems, and Essential Eight. We have introduced desktop cyber security simulations for executives and mandatory securityspecific training for all employees. 4 Community support Atturra exceeded its goal of saving 200 lives through blood and plasma donations to the Life Blood Bank. Across five states, our collective donations saved 270 lives. We provided 13,700+ fresh meals to people in need as part of our initiative with PonyUp for Good, an Engagement Agency & Social Enterprise. With the number of employees growing significantly through acquisitions, we also achieved our most successful Cancer Council Biggest Morning Tea fundraising total to date. 5 Environmental accountability Atturra’s partnership with PonyUp for Good also resulted in 3,847 kgs of e-waste saved from landfill, with 20% of technology reused. We’ve also continued to progress towards our carbon offsetting and recycling targets, with most of our offices having NABERS ratings of 4.5 to 5.5. Atturra Annual Report 2024 11 General information 30 June 2024 The financial statements cover Atturra Limited and the entities it controlled at the end of, or during, the financial year (Atturra Group). The financial statements are presented in Australian dollars, which is Atturra Limited’s functional and presentation currency. Atturra Limited is a listed public company limited by shares, incorporated, and domiciled in Australia. Its registered office and principal place of business are: Registered office Level 33, Aurora Place 88 Phillip Street Sydney NSW 2000 Principal place of business Level 2 10 Bond Street Sydney NSW 2000 A description of the nature of Atturra Group’s operations and its principal activities are included in the Directors’ report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 23 August 2024. The Directors have the power to amend and reissue the financial statements. 12 Atturra Annual Report 2024 Directors’ report 30 June 2024 The Directors present their report, together with the financial statements, on Atturra Group at the end of, or during, the year ended 30 June 2024. Directors The following persons were Directors of Atturra Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Shan Kanji – Non-Executive Chairman Stephen Kowal – Executive Director and Chief Executive Officer Nicole Bowman – Independent Non-Executive Director Jonathan Rubinsztein – Independent Non-Executive Director Principal activities Atturra Group provides whole-of-organisation technology solutions covering service lines of advisory, managed services, business applications, data & integration, cloud services, change management, managed control solutions and industry engagement. Dividends No dividends were paid, recommended, or declared during the current financial year to Atturra Limited shareholders. During the current financial year, a dividend of $265,000 (2023: $513,000) was paid to the minority shareholders of Noetic Group Pty Ltd, with the remainder being paid to Atturra Holdings Pty Ltd and FTS NHC Pty Ltd that was eliminated on consolidation. Review of operations Atturra Group is a leading Australian technology solutions and managed services business. It provides expertise across a broad range of specialist in‑demand IT areas to deliver solutions to clients. Atturra Group uses transformative, market leading technologies and business applications that enable digital transformations. Atturra Group engages over 900 consultants, IT and support personnel in Australia, New Zealand, Singapore, and Hong Kong. Atturra Group has two key strategies, a technology strategy, and an industry strategy. The technology strategy is to focus on high growth technologies or technologies where it can have a market dominant position. The industry