INTEGRATED RESEARCH LIMITED — Interim / Quarterly Report 2021

Feb 17, 2021

Integrated Research Ltd > ABN 76 003 588 449 Level 9, 100 Pacific Highway, North Sydney NSW 2060 Australia t: +61 (2) 9966 1066 e: info.ap@ir.com

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18 February 2021

ASX Market Announcements Office Australian Securities Exchange Limited

Dear Sir/Madam

ASX Market Announcement

In accordance with the ASX Listing Rules, Integrated Research Limited (ASX: IRI) encloses for release to the market:

• Appendix 4D, and

• Interim Financial Report for the half-year ended 31 December 2020.

By authority of the Board

David Purdue Company Secretary Integrated Research Limited ABN: 76 003 588 449

www.ir.com

Integrated Research Limited Appendix 4D Half-year Report

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Appendix 4D

Half-year report

Name of entity

INTEGRATED RESEARCH LIMITED

Appendix 4D Half-year report Name ofentity	Appendix 4D Half-year report Name ofentity	Appendix 4D Half-year report Name ofentity	Appendix 4D Half-year report Name ofentity
INTEGRATED RESEARCH LIMITED
ABN		Reportingperiod (half-yearended) 31 December 2020	Previous corresponding period (half-yearended)
76 003 588 449		31 December 2020	31 December 2019

For announcement to the market

Extracts from this report for announcement to the market

				A$000
Revenues from ordinary activities	Down	36%	to	34,111
Profit/(loss) before tax attributable to members	Down	109%	to	(1,386)
Netprofit for theperiod attributable to members	Down	99%	to	129
	Amountper		Franked amount per
Dividends(distributions)	security		security
Interim dividend	Nil			N/A
Previous corresponding period	3.5¢			100%

Brief explanation of results

Please refer to page 2 ‘Review of Operations’ for an explanation of the results. This information should be read in conjunction with Integrated Research Limited 2020 Annual Report.

The information provided in this report contains all the information required by ASX Listing Rule 4.2A.

	December 2020	December 2019
NTA backing	Cents	Cents
Net tangible asset backing per ordinary security	25.94	28.74
	December 2020	December 2019
Dividends	$’000	$’000
No interim dividend has been declared for the current period(prior
period: 100% frankeddividend of 3.5 cents per share)	Nil	6,015
Total dividendsprovided for orpaid	Nil	6,015

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INTEGRATED RESEARCH LIMITED AND CONTROLLED ENTITIES

FOR THE HALF-YEAR ENDED

31 DECEMBER 2020

ABN: 76 003 588 449

ASX CODE: IRI

HALF-YEAR ENDED 31 DECEMBER 2020

Table of Contents

Directors’ Report	1
Consolidated Interim Financial Report
Consolidated Statement of Comprehensive Income	4
Consolidated Statement of Financial Position	5
Consolidated Statement of Changes in Equity	6
Consolidated Statement of Cash Flows	7
Notes to the Consolidated Financial Statements	8
Directors’ Declaration	13
Auditor’s Independence Declaration	14
Independent Auditor’s Review Report	15

HALF-YEAR ENDED 31 DECEMBER 2020

Directors’ Report

The Directors present their report together with the consolidated financial report for the half-year ended 31 December 2020 and the review report thereon.

Directors

The Directors of Integrated Research Limited at any time during or since the end of the half-year are:

Paul Brandling – Independent Non-Executive Director and Chairman Nick Abrahams – Independent Non-Executive Director (retired 25 November 2020) Allan Brackin – Independent Non-Executive Director (appointed 1 February 2021) Garry Dinnie – Independent Non-Executive Director Peter Lloyd – Independent Non-Executive Director Anne Myers – Independent Non-Executive Director John Ruthven – Managing Director

Principal Activities

Integrated Research Limited’s principal activities are the design, development, implementation and sale of systems and applications management computer software for business-critical computing, Unified Communication networks and Payment networks.

Half-Year Results

The following table summarises the key revenue, expense and profit results for the consolidated entity for the half-year ended 31 December 2020 compared to the previous corresponding period:

			Change
In thousands of AUD	2020	2019	%
Revenue from licence fees	17,104	33,358	(49%)
Revenue from maintenance fees	10,287	12,068	(15%)
Revenue from SaaS fees	125	396	(68%)
Revenue from testing solution services	2,385	2,809	(15%)
Revenue from professional services	4,210	4,549	(7%)
Total revenue	34,111	53,180	(36%)
Total expenses	(32,880)	(38,457)	(15%)
Profit before finance income, other losses, and income tax	1,231	14,723	(92%)
Other (losses)1	(2,983)	(112)	2563%
Finance income	366	274	34%
(Loss)/profit before tax	(1,386)	14,885	(109%)
Netprofit after income tax	129	11,824	(99%)

1 Other losses comprise of currency revaluation loss of $3.0 million (2019: $11,000) and loss on sale of financial assets of nil (2019: $101,000).

The Company reported profit after tax of $129,000 and revenue of $34.1 million for the half year ended 31 December 2020. The results were down globally across all product lines. There were four factors affecting the revenue: firstly, sales opportunities that did not renew; secondly, sales that closed at lower contract value from shortened commitment periods; thirdly, sales deferred past the reporting period; and lastly an increase in the AUD/USD exchange rate across the period. The greatest impact on revenue was the deferment of sales past the reporting period.

As communicated at the Company’s Annual General Meeting, the on-going global uncertainty around COVID and other geopolitical uncertainties saw typical sales cycles lengthen and some customers deferring purchasing decisions. Historically, a significant proportion of licence sales close within the last few weeks of a reporting period. As it transpired, the risk on earnings shortfall was much greater than first anticipated with delays pushing beyond 31 December 2020.

The strengthening Australian dollar during the half had a negative impact on the Company in two ways. Firstly, the revaluation of foreign currency denominated assets resulted in unrealised losses of $3.0 million in the half. Secondly, the translation of offshore revenues at higher exchange rates lowering reported revenues. In constant currency, revenue for the half would have been $35.7 million compared to the reported revenue of $34.1 million. Removing the effects from both currency revaluation and currency translation would have seen profit after tax of $2.9 million compared to the reported result of $129,000.

1

HALF-YEAR ENDED 31 DECEMBER 2020

Directors’ Report (continued)

Review of Operations

Revenue

Revenue for the reporting period was $34.1 million, a decrease of 36% over the previous corresponding period. The following table presents Company revenue for each of the relevant product groups:

In thousands of AUD	2020 2019 Change %
Collaborate Infrastructure Transact Professional Services Total revenue	20,100 29,659 (32%) 5,565 11,176 (50%) 4,236 7,796 (46%) 4,210 4,549 (7%)
	34,111 53,180 (36%)

The following table presents revenue in native currency by geographic segment:

	2020 2019 Change %
Americas (USD’000) Europe (£’000) Asia Pacific (A$’000)	17,873 23,409 (24%) 2,898 5,250 (45%) 4,100 9,288 (56%)

Expenses

The Company’s operating cost base decreased by 15% to $32.9 million. Significant reductions in travel, marketing events and other employee expenses were consequential from the pandemic. The cost base was also down due to offshore operating expenses being translated at higher exchange rates. Variable expenses, such as sales commissions, were also down due to lower revenue. Staff numbers at 31 December 2020 were 264 compared to 268 at 31 December 2019.

The following table represents an analysis of research and development:

In thousands of AUD	2020 2019
Gross research and development spending Capitalisation of development expenses Amortisation of capitalised expenses Net research and development expenses	10,148 11,012 (6,173) (7,236) 4,614 4,370
	8,589 8,146

Cashflow

Despite the fall in profitability, cashflow from operating activities of $11.3 million remained buoyant. Cash receipts from customers was $42.4 million for the reporting period with no debtor factoring.

For the financial year ended 30 June 2020, as detailed in the Directors' Report for that financial year, a final dividend of 3.75 cents per share franked at 100% was paid to the holders of fully paid ordinary shares on 15 October 2020.

Statement of Financial Position

At 31 December 2020, the Company held $8.2 million in cash (30 June 2020: $9.7 million). The $20 million bank debt facility was drawn to $6.5 million (30 June 2020: $5.0 million).

Outlook

Plans have been developed to turnaround the poor first half performance, however revenue and profit for the current financial year will be below the preceding financial year. The Company plans to gain traction from new cloud solutions that were recently released to provide the platform for growth in future years.

2

HALF-YEAR ENDED 31 DECEMBER 2020

Interim Dividend

The Board did not declare an interim dividend. The assessment of future dividends will be made after the annual results are available.

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

The lead auditor’s independence declaration is set out on page 14 and forms part of the Directors' Report for the half-year ended 31 December 2020.

Rounding off

Integrated Research Limited is of a kind referred to in ASIC Legislative instrument 2016/191 and in accordance with the Class Order, amounts in the financial report and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of the Directors:

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Paul Brandling Chairman

John Ruthven

Managing Director

Dated at North Sydney this 18[th] day of February 2021.

3

HALF-YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2020 In thousands of AUD

Note	December 2020 December 2019
Continuing Operations Revenue from contracts with customers Licence fees Maintenance fees SaaS fees Testing solution services Professional services Total revenue 3 Expenditure: Research and development Sales, professional services and marketing expenses General and administration expenses Total expenditure Other losses (Loss)/profit before finance income and tax Finance income (Loss)/profit before tax Income tax benefit/(expense) Profit for the period Other comprehensive income Items that may be reclassified subsequently to profit Gain on cash flow hedges taken to equity Foreign exchange translation differences Other comprehensive (loss)/income for the period Total comprehensive (loss)/income for the period Profit attributable to: Members of Integrated Research Total comprehensive (loss)/income attributable to: Members of Integrated Research Earnings per share attributable to members of Integrated Research Basic earnings per share to ordinary equity holders (AUD cents) 4 Diluted earnings per share to ordinary equity holders (AUD cents) 4	17,104 33,358 10,287 12,068 125 396 2,385 2,809 4,210 4,549
	34,111 53,180
	(8,589) (8,146) (21,580) (26,936) (2,711) (3,375)
	(32,880) (38,457)
	(2,983) (112)
	(1,752) 14,611 366 274
	(1,386) 14,885
	1,515 (3,061)
	129 11,824
	- 208 (1,976) 52
	(1,976) 260
	(1,847) 12,084
	129 11,824 (1,847) 12,084 0.08 6.88 0.07 6.85

The consolidated statement of comprehensive income is to be read in conjunction with the accompanying notes set out on pages 8 to 11.

4

HALF-YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Financial Position For the half-year ended 31 December 2020 In thousands of AUD

	December 2020 June 2020
Current assets Cash and cash equivalents Trade and other receivables Current tax assets Other current assets Total current assets Non-current assets Trade and other receivables Other financial assets Property, plant and equipment Right-of-use assets Deferred tax assets Intangible assets Other non-current assets Total non-current assets Total assets Current liabilities Trade and other payables Provisions Income tax liabilities Deferred revenue Lease liabilities Other financial liabilities Total current liabilities Non-current liabilities Borrowings Deferred tax liabilities Provisions Deferred revenue Lease liabilities Other financial liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Retained earnings Total equity attributable to members of Integrated Research	8,171 9,744 43,302 57,853 2,185 64 4,100 2,963
	57,758 70,624
	26,948 29,399 206 236 1,565 1,883 6,923 6,367 1,214 1,404 30,020 29,052 647 872
	67,523 69,213
	125,281 139,837
	8,512 10,213 3,752 3,852 - 2,192 16,010 20,767 1,741 1,372 478 37
	30,493 38,433
	6,494 5,000 6,287 6,450 604 713 1,223 1,556 5,483 5,142 12 21
	20,103 18,882
	50,596 57,315
	74,685 82,522
	1,667 1,667 3,560 5,079 69,458 75,776
	74,685 82,522

The consolidated statement of financial position is to be read in conjunction with the accompanying notes set out on pages 8 to 11.

5

HALF-YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Changes in Equity For the half-year ended 31 December 2020 In thousands of AUD

				Employee
	Share	Hedging	Translation	Benefits	Retained
	**Capital **	Reserve	Reserve	Reserve	Earnings	**Total **
Balance as at 1 July 2020	1,667	-	830	4,249	75,776	82,522
Profit for the period	-	-	-	-	129	129
Other comprehensive (loss)/income	-	-	(1,976)	-	-	(1,976)
Total comprehensive (loss)/income for the period	-	-	(1,976)	-	129	(1,847)
Expensed employee options and performance rights	-	-	-	457	-	457
Payment of dividends	-	-	-	-	(6,447)	(6,447)
Balance at 31 December 2020	1,667	-	(1,146)	4,706	69,458	74,685

	Share Capital Hedging Reserve Translation Reserve Employee Benefits Reserve Retained Earnings Total
Balance as at 1 July 2019 Profit for the period Other comprehensive income Total comprehensive income for the period Expensed employee options and performance rights Payment of dividends Balance at 31 December 2019	1,667 (51) 493 3,536 64,182 69,827 - - - - 11,824 11,824 - 208 52 - - 260
	- 208 52 - 11,824 12,084 - - - 334 - 334 - - - - (6,445) (6,445)
	1,667 157 545 3,870 69,561 75,800

The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes set out on pages 8 to 11.

6

HALF-YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Cash Flows For the half-year ended 31 December 2020 In thousands of AUD

	December 2020 December 2019
Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Income taxes paid Net cash from operating activities Cash flows from investing activities Payments for capitalised development Payments for property, plant and equipment Payments for intangible assets Interest received Net cash used in investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Payment of lease liabilities Interest payments Payment of dividend Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 July Effects of exchange rate changes on cash Cash and cash equivalents at 31 December	42,354 45,450 (28,319) (30,029)
	14,035 15,421 (2,780) (2,174)
	11,255 13,247
	(6,173) (7,236) (72) (224) - (385) 605 364
	(5,640) (7,481)
	6,494 4,000 (5,000) (4,000) (851) (961) (240) (90) (6,447) (6,445)
	(6,044) (7,496)
	(429) (1,730) 9,744 9,316 (1,144) 6
	8,171 7,592

The consolidated statement of cash flows is to be read in conjunction with the accompanying notes set out on pages 8 to 11.

7

HALF-YEAR ENDED 31 DECEMBER 2020

Notes to the Consolidated Financial Statements

For the half-year ended 31 December 2020 In thousands of AUD

Note 1. Significant accounting policies

a) Statement of Compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

b) Basis of Preparation

The interim financial report using prepared on the historical cost convention, with the exception of financial instruments for the purposes of cash flow hedges, which are at fair value. All amounts are presented in Australian dollars unless otherwise stated.

Integrated Research Limited is a for-profit Company limited by ordinary shares.

Integrated Research Limited is of a kind referred to in ASIC Legislative instrument 2016/191. In accordance with that Class Order, amounts in the financial report and Directors’ Report and the half-year financial report have been rounded off to the nearest thousand dollars, unless otherwise indicated.

New accounting standards and interpretations

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in Integrated Research Limited's 2020 annual financial report, except for the adoption of new standards for the 2021 financial year. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

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HALF-YEAR ENDED 31 DECEMBER 2020

Note 2. Segment information

The Chief Operating Decision Maker, “CODM”, (being the Chief Executive Officer) reviews a variety of information on the performance of Prognosis across the group for the purpose of resource allocation. The CODM monitors profit at a group level.

The principal geographical regions are The Americas – Operating from the United States with responsibility for the countries in North, Central and South America, Europe – operating from the United Kingdom and Germany with responsibility for the countries in Europe, Asia Pacific – operating from Australia and Singapore with responsibility for the countries in the rest of the world and Corporate Australia – with responsibility for research and development and corporate head office functions of the Company.

Inter-segment pricing is determined on an arm’s length basis.

Segment profit represents the profit earned by each segment without allocation of investment revenue and income tax expense.

Information regarding these geographic segments is presented below. The accounting policies of the reportable segments are the same as the Company’s accounting policies.

	Americas	Europe	Asia Pacific	Corporate Australia1	Eliminations	Consolidated 2020 2019 34,111 53,180 - - 34,111 53,180 (1,752) 14,611 366 274 1,515(3,061) 129 11,824 1,681 8,229 6,182 6,029
In thousands of AUD	2020 2019	2020 2019	2020 2019	2020 2019	2020 2019
	24,732 34,275 - -	5,279 9,842 - -	4,100 9,288 - -	- (225) 14,163 22,483	- - (14,163) (22,483)
Continuing operations
Sales to customers outside the consolidated entity
Inter-segment revenue
Total segment revenue	24,732 34,275	5,279 9,842	4,100 9,288	14,163 22,258	(14,163) (22,483)
Segment (loss)/profit (before finance income and tax)	850 969	152 246	136 314	(2,890) 13,082	- -
Financing income (interest received)
Income tax benefit/(expense)
Profit for the half- year
Capital additions2	1,534 637	4 622	75 150	68 6,820	- -
~~Depreciation and~~ amortisation expenses	334 464	147 184	145 93	5,556 5,288	- -

	Americas (USD) Europe (UK Sterling)
In local currency3 Sales to customers outside the consolidated entity Inter-segment sales Total segment revenue Segment Profit	2020 2019 2020 2019
	17,873 23,409 2,898 5,250 - - - -
	17,873 23,409 2,898 5,250
	616 661 84 125

1 Corporate Australia includes research and development, hedging and corporate head office functions of Integrated Research Limited.

2 Excludes internal development costs capitalised but includes third party assets acquired.

3 Segment results represented in local currencies.

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HALF-YEAR ENDED 31 DECEMBER 2020

Note 3. Revenue from contracts with customers

Information regarding the disaggregation of the Company’s revenues from contracts with customers is presented below.

	Consolidated Consolidated
In thousands of AUD	December 2020 December 2019
Timing of revenue recognition At a point in time Over time Total Revenue from contracts with customers Type of product group Collaborate Infrastructure Transact Professional Services Total revenue	17,104 33,358 17,007 19,822
	34,111 53,180
	20,100 29,659 5,565 11,176 4,236 7,796 4,210 4,549
	34,111 53,180

Note 4. Earnings per Share

Basic earnings per share

The calculation of basic earnings per share for the half-year ended 31 December 2020 was based on the profit attributable to ordinary shareholders of $129,000 (half-year ended 31 December 2019: $11,824,000) and a weighted average number of ordinary shares outstanding during the half-year ended 31 December 2020 of 172,030,086 (half-year ended 31 December 2019 of 171,860,753).

Diluted earnings per share

The calculation of diluted earnings per share for the half-year ended 31 December 2020 was based on the profit attributable to ordinary shareholders of $129,000 (half-year ended 31 December 2019: $11,824,000) and a weighted average number of ordinary shares outstanding during the half-year ended 31 December 2020 of 172,541,197 (half-year ended 31 December 2019: 172,611,329).

Note 5. Employee Equity benefits

Performance Rights and Options Plan – November 2011

On 21 November 2011, the consolidated entity established performance rights and options plan. The plan enables Integrated Research Limited to offer performance rights to eligible employees to obtain shares in Integrated Research Limited at no cost contingent upon performance conditions being met. The performance conditions may be a service period only or a service period and either a net profit after tax or total shareholder return hurdle. The performance rights are automatically exercised into shares upon the performance conditions being met. The following performance rights were granted during the period:

	Grant Date Number of Rights Expiry date
	September 2020 134,410 August 2023
	November 2020 95,368 August 2023

The following performance rights were outstanding as at 31 December 2020:

Grant Date	Number of Rights	Expiry date
September 2018	83,000	September 2021
December 2018	136,000	November 2021
January 2019	89,988	March 2022
February 2019	40,000	March 2021
August 2019	40,000	September 2022
September 2019	186,267	September 2022
November 2019	152,438	September 2022

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HALF-YEAR ENDED 31 DECEMBER 2020

Note 5. Employee Equity benefits (continued)

During the period, the following performance rights were exercised into ordinary shares for nil consideration.

Grant Date	Number of Rights	Expiry date
September 2017	70,000	September 2020
October 2017	244,000	October 2020

Note 6. Financial Instruments

Forward foreign exchange contracts

The consolidated entity is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the AUD. The currencies giving rise to this risk are primarily United States Dollar, UK Sterling and the Euro.

The consolidated entity uses forward exchange contracts to hedge its foreign currency risk. The forward exchange contracts have maturities of less than two years after the reporting date.

The consolidated entity classifies its forward exchange contracts hedging forecasted transactions as cash flow hedges and measures them at fair value. The following table details the forward foreign currency contracts outstanding as at reporting date:

	Outstanding contracts	Average Exchange Rate	Foreign Currency	Contract Value	Fair Value
		2020 2019	2020 FC’000 2019 FC’000	2020 A$’000 2019 A$’000	2020 A$’000 2019 A$’000
	Consolidated Sell US Dollar Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months Sell Euros Less than 3 months 3 to 6 months Sell Sterling Less than 3 months 3 to 6 months				350 59 354 78 261 79 - 1 - 2 - - - (7) - -
		0.72 0.70 0.72 0.69 0.72 0.69 - 0.70	3,750 5,000 3,750 3,150 2,500 2,000 - 850	5,203 7,184 5,205 4,557 3,493 2,918 - 1,206
		- 0.61 - 0.62 - 0.55 - 0.53	- 50 - 50 - 150 - 50	- 82 - 81 - 275 - 94
					965 212

These hedge assets and liabilities are classified as a level 2 fair value measurement, being derived from inputs provided from financial institutes, rather than quoted prices that are observable for the asset either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value measurement of the over the counter forward contract would not qualify as Level 1 as there is not a quoted price for the actual contract, even though data used to value the contract may be derived entirely from active foreign-exchange and interestrate market.

Fair value of financial instruments

The carrying value of financial assets and financial liabilities of the consolidated entity is a reasonable approximation of their fair value.

Financial assets

For non-current trade debtors Integrated Research Limited has considered a discount rate to recognise the net present value of the debtors. Level 3 inputs have been considered including corporate borrowing rates, size of the customer and jurisdiction of the customer. A discounted cashflow model was used to derive the fair value. The range of discount rates was between 3.5% to 7.5%.

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HALF-YEAR ENDED 31 DECEMBER 2020

Note 6. Financial Instruments (continued)

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. The consolidated entity has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. The largest single counterparty balance with any one customer at 31 December 2020 was $10.7 million (June 2020: $12.1 million). Ongoing credit evaluation is performed on the financial condition of accounts.

The Company has a program to sell selected account receivable balances to a third party without recourse. There were no sales of accounts receivables during the current reporting period. During the equivalent prior period a total of $1.2 million debtors were sold at a cost of $101,000. The Company continues to bear maintenance support obligations to the end customers which are carried as a liability in the deferred revenue account of the Company’s balance sheet of $2.2 million (June 2020: $2.7 million).

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

Note 7. Subsequent events

There were no events after the interim balance sheet date which are expected to have a material effect on the consolidated entity’s financial position.

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HALF-YEAR ENDED 31 DECEMBER 2020

Directors’ Declaration

In accordance with a resolution of the directors of Integrated Research Limited:

In the opinion of the directors:

• a) The financial statements and notes of Integrated Research Limited for the half-year ended 31 December 2020 are in accordance with the Corporations Act 2001, including:

• (i) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

• (ii) Complying with Accounting Standards and the Corporations Regulations 2001.

• b) There are reasonable grounds to believe that Integrated Research Limited will be able to pay its debts as and when they become due and payable.

Dated at North Sydney this 18[th] day of February 2021.

On behalf of the Directors

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Paul Brandling Chairman

John Ruthven

Managing Director

13

Ernst & Young 200 George Street Sydney NSW 2000 Australia

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

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GPO Box 2646 Sydney NSW 2001

Auditor’s Independence Declaration to the Directors of Integrated Research Limited

As lead auditor for the review of Integrated Research Limited for the half-year ended 31 December 2020, I declare to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review ; and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Integrated Research Limited and the entities it controlled during the financial period.

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Ernst & Young

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Julian M. O’Brien Partner 18 February 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

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Ernst & Young Tel: +61 2 9248 5555 200 George Street Fax: +61 2 9248 5959 Sydney NSW 2000 Australia ey.com/au GPO Box 2646 Sydney NSW 2001

Independent Auditor's Review Report to the Members of Integrated Research Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Integrated Research Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the consolidated financial position of the Group as at 31 December 2020 and of its consolidated financial performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Directors’ Responsibility for the Half-Year Financial Report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s consolidated financial position as at 31 December 2020 and its consolidated financial performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

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Ernst & Young

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Julian M. O’Brien Partner Sydney

18 February 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

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