The original wiring can be identified from the circuit diagram on the Danfoss Programmer as follows:
DANFOSS
N Neutral
L Live
Hot water on = Yellow wire in Terminal 1
Heating on = Blue wire in Terminal 4
Muggles has explained that with the Danfoss, terminals L, 2 & 5 all need to be connected to the live supply, The Hive Dual Channel version does this internally, so doesn't need any extra links, the Live wire only needs to go to the L terminal.
I can't see a live connection to the L in your photo of the Danfoss, but it must be there to provide power to it for it to operate. It will also be linked to 2 & 5 as already stated.
You will need the 'Dual Channel' version of the Hive, so you simply need to move the wires to the terminals that have the same function on the Hive as follows:
HIVE
N Neutral
L Live
Hot water on = Terminal 3 (Yellow wire)
Heating on = Terminal 4 (Blue wire)
No extra links are required. As a blue wire which is normally used for a neutral is used as a live for heating on, it should really have a brown sleeve on it.
So that's the wiring at the existing programmer taken care of. The next question is, is there an existing room thermostat? As the Hive carries out time and temperature control, any existing room thermostat this needs to be removed and a minor change make to the wiring, so that the Hive can take full control of the system. If there is an existing room thermostat, and you need help to decommission it, post back the details.