ann

City Rail Link Limited Annual Report for Financial Year 2024–2025

Basalt wall of trickling water welcomes Maungawhau Station passengers

Use of te reo Māori in this document Our commitment to te reo Māori means that you will see the use of words and phrases in te reo Māori throughout this document as normal practice. Some definitions:

Aotearoa

New Zealand

Mana Whenua

tribe with authority of the region

Iwi

tribe

Rangatahi

young people

Kaimahi

worker

Tāmaki Makaurau

Auckland

Kaitiaki

custodian/steward

Te reo Māori

Māori language

Mahi

work

Whenua

land

Mahia te mahi

do the work

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City Rail Link Ltd Annual Report 2025

Contents Ngā Kaupapa Project Overview Introduction to the City Rail Link

4

Chair and CEO Report

6

Progress Highlights

10

CIty Rail Link Project Contracts

12

Statement of Performance

14

Objectives

14

Performance Targets and Measures

16

Project Delivery

16

Funding Envelope

22

Community and Stakeholder Engagement

24

Health and Safety

26

Sustainability and Social Outcomes

28

Financial Objectives

30

Company Overview

32

City Rail Link Ltd Board

34

Senior Leadership Team

36

Key Contracts and Relationships

38

Partnership with Mana Whenua

40

CRL Ltd as a Good Employer

42

Financial Statements, Notes, Governance and Remuneration Disclosures

44

Corporate Directory

44

Statement of Responsibility

45

Statement of Financial Performance

46

Statement of Financial Position

47

Statement of Changes in Equity

48

Statement of Cash Flows

49

Notes to the Financial Statements

50

Governance and Remuneration Disclosures

71

Independent Auditor’s Report

75

City Rail Link Ltd Annual Report 2025

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Introduction to the City Rail Link He Kōrero Whakataki mō City Rail Link City Rail Link Limited (CRL Ltd or the Company) was established to support the development of Auckland and of greater New Zealand by delivering a large-scale railway infrastructure project.

Q

ua

y

St

Parnell Station

Waitematā Station (Britomart) Eastern Entrance

Grafto

Waitematā Station (Britomart) Chief Post Office Building Entrance

Que

en S

t

M Te Waihorotiu Station Wellesley St Entrance

Waitematā Harbour

Te Waihorotiu Station Victoria St Entrances

Hob

son

St K ar ang aha Rd

Beresford Square Entrance

pe

Karanga-a-Hape Station 1

CRL - Underground Track

Existing Track

New Pedestrian Overbridge

New or Redeveloped CRL Stations

CRL - Underground Track

4

Existing Stations

Existing Track

City Rail Link Ltd Annual Report 2025

New

PROJECT OVERVIEW

When City Rail Link (CRL or the Project) is complete and becomes part of the wider transport network, it will contribute to a more vibrant and better connected Auckland – with more regular trains at peak times and increased travel choices, supporting the ongoing growth of the city.

CRL Ltd’s scope includes:

Remuera Station 1

Newmarket Station

Maungawhau Station

Mt Eden Rd Entrance

• 3.45km twin underground tunnels connecting Waitematā and Maungawhau Stations • Building two new stations - Te Waihorotiu and Karanga-a-Hape • Waitematā Station being transformed into a through station and significantly redeveloping Maungawhau Station • Capacity for nine-car trains • 100-year design life • Performing wider rail network improvement at The Strand, Ōtāhuhu and Newmarket

on Station 1

• Funding rail network improvements for Henderson Station that will be delivered

by KiwiRail and Auckland Transport

Maungawhau Station Ruru Lane Entrance

Mt Ed e

As we progress towards Project completion, testing and commissioning is underway to prepare the Project to become part of Auckland’s wider transport network.

n Rd

N ew N or th Rd

Karanga-a-Hape Station Mercury Lane Entrance

Domin 16

w or Redeveloped CRL Stations

ion Rd

Existing Stations

City Rail Link Ltd Annual Report 2025

5

Chair and CEO Report Pūrongo a te Heamana me te Tumu Whakarae CRL Ltd was established to deliver a world class underground railway for Auckland’s future. The substantial progress made in the past year to achieve that vision is highlighted in CRL Ltd’s 2024 - 2025 annual report covering the period from 1 July 2024 to 30 June 2025 (FY25).

FY25 reports the work achieved during the project’s final construction and installation and commissioning phase highlighted by what CRL Ltd described as “a colossal milestone” with the start of train testing in the City Rail Link (CRL) tunnels.

At the start of FY25, CRL Ltd’s Chief Financial Officer, Patrick Brockie, was named as the company’s new Chief Executive to replace Dr Sean Sweeney. Mr Brockie had been Chief Financial Officer for five years prior to his appointment.

Key milestones were delivered in rapid succession during FY25.

Installation of Overhead Line Equipment (OHLE) to provide electricity for trains was completed – a challenging programme of work given CRL’s steep gradients and confined spaces in the tunnels – and permanent power supply to the stations was achieved.

The fit-outs at the Maungawhau, Karanga-a-Hape and Te Waihorotiu Stations are about 95 per cent complete. The programme includes the installation of ticketing gates, ventilation, heating, lighting, security, and communications systems.

Mahi Ōkawa, led by Ngati Whatua Ōrakei in progress in the tunnel 6

City Rail Link Ltd Annual Report 2025

PROJECT OVERVIEW

Underpinning all this work was an extensive and ongoing programme of testing and commissioning.

During FY25, CRL Ltd made significant progress in completing the exacting task of conducting 7,037 of the more than 16,000 individual tests required to ensure all systems function correctly and that CRL will be safe to operate upon completion.

In addition, all the exteriors at Te Waihorotiu, Karanga-a-Hape and Maungawhau Stations were unveiled, as were the interior station wall and ceiling designs. Together, all three stations showcase unique design that represent a striking blend of modern architecture and Māori artistry merging Tāmaki Makaurau’s cultural past with the city’s future.

Maungawhau, near the foot of the Maungawhau/ Mt Eden volcano, includes a feature of running water flowing down a wall made from volcanic basalt stone.

Karanga-a-Hape will be New Zealand’s deepest railway station at 33 metres and during FY25 interior designs were unveiled that reflect both various geological layers of earth, and also acknowledge the Māori deity, Tāne Mahuta, and kauri trees that once grew on the ridge above the station.

At Te Waihorotiu, one section of the station interior includes a ceiling of undulating goldenhued aluminium tubes – reflecting the reeds that grew on the banks of nearby Te Waihorotiu Stream and supported iwi living in the area.

The strong partnership CRL Ltd enjoys with the eight–iwi represented on the project’s Mana Whenua Forum was further strengthened in

City Rail Link Ltd Annual Report 2025

November 2024 with a Mahi Ōkawa - a formal blessing of the tunnels and stations. Mahi Ōkawa, led by Ngati Whatua Ōrakei, included representatives of the Forum, CRL Ltd and Link Alliance – the project’s main delivery contractor – who walked CRL’s full 3.45 kilometres from Maungawhau Station to Waitematā Station.

The blessing symbolically marked the end of the project’s heavy construction phase and cleared the way for the start of train tests underground.

After exhaustive planning and safety checks that peaked when the tunnels’ overhead lines were energised, a test train made the first trip through the full length of the CRL tunnels in February.

CRL Ltd said the “colossal milestone” was one of the major goals that the project had been working towards since construction began in 2016. The test train successfully completed the first round of underground checks and balances relating to tunnel clearance, power supply and signalling that cleared the way for a more extensive programme of dynamic train testing and driver training.

Throughout FY25 CRL Ltd continued to be supported by Auckland Transport, Auckland Council ’s provider of public transport services in the city, and by KiwiRail Holdings Ltd, the stateowned enterprise responsible for national rail operations. Auckland Transport, together with Auckland One Rail as the contracted operator of the Auckland metro rail network, and KiwiRail will operate and manage a completed CRL as part of Auckland’s rail network. Partnership with Auckland Transport and KiwiRail through an informal agreement known as the One Client Alliance is vital to the successful completion of the project.

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Beyond CRL worksites, Auckland Transport and KiwiRail had their own programmes of work to upgrade Auckland’s rail network to maximise the benefits CRL will deliver when it opens in 2026.

The C9 Waitemata Station East contract was substantially completed during the year. This was a major contract spread over three years to increase train frequency. Reconfiguration of the Britomart East Junction included structural alterations to the existing station tunnel (including widening the entrance), platforms, and track slab.

CRL Ltd continued funding the upgrade of Henderson Station on the Western/North Auckland Line delivered by KiwiRail Holdings Limited. Improvements include a new third platform and additional tracks to help maximise the benefits of CRL with more frequent and reliable train services. Work will finish in FY26.

CRL Ltd also worked closely with emergency services in FY25. CRL is New Zealand’s first underground railway, and the tunnels and stations are important environments to test responses and communications systems for any event that might occur below ground.

CRL Ltd and Link Alliance can reflect on FY25 with pride after they received recognition both nationally and overseas for their work to protect the environment and improve social outcomes.

The project achieved an As Built “Leading”

rating from the Australian-based Infrastructure Sustainability Council which surpassed CRL Ltd’s target of achieving an “Excellent” rating.

Link Alliance also achieved a "Leading" rating from the Council for its work on the main C3 contract. The project also received the Project Management Institute of New Zealand’s 2025 Sustainability Project of the Year Award. The award recognised a project that had excelled in integrating sustainability principles considering the environmental, social and governance aspects throughout its delivery life cycle.

Further recognition included work around clean air, dust control, recycling, worker safety and wellbeing, and the project’s innovative Progressive Employment Programme for Māori and Pasifika rangatahi. Every success represented the dedication of our workers to make positive change, and the excellence goals CRL Ltd itself has set to raise the bar for infrastructure in New Zealand in key areas that include health and safety, construction, environmental protection, risk management, and cultural and community engagement.

CRL Ltd wants to thank the communities that neighbour the work sites for their continued support during FY25. Their co-operation is important to delivering a successful project.

During the year CRL Ltd and Link Alliance

Worker reassmbles the Bluestone Wall 8

City Rail Link Ltd Annual Report 2025

PROJECT OVERVIEW

continued to respond promptly to any issue raised about the work, we supported community events, and people were kept informed of work progress through many different proactive communication channels. As work was completed, protective hoardings were removed, and access around our sites continued to be improved with upgraded footpaths and road layouts. Urban realm reinstatement works included plantings, better lighting, facilities for cyclists and street furniture – all aimed at enhancing the stations and making surrounding areas attractive destinations.

At the end of FY25, work was well underway to restore block by block the historic blue stone wall that supports a section of Albert Street near Te Waihorotiu Station.

CRL Ltd also acknowledges the continued support during FY25 from its two sponsors – the Crown and Auckland Council. A completed CRL will benefit both Auckland and wider New Zealand.

Capital works spend in FY25 of $414m was 14 per cent lower than the budget of $481m.

CRL Ltd received Sponsor funding of $438m which was similarly lower (15 per cent) than budgeted funding of $516m. These variances reflect the additional time required for the final phases of construction and comprehensive compliance and safety procedures, meaning the key milestone of 25 kV traction power energisation (the prerequisite to train testing) targeted for October 2024 was achieved in February 2025. This delay has led to a review of the Project's overall delivery timeline, with Practical Project Completion now expected in 2026.

The net deficit of $156m was materially under budget as vested asset expenses of $122m did not occur as the earlier tunnel works will now transfer with the rest of the main Project works in 2026.

The total Project spend to 30 June 2025 was $4,974m compared to total approved funding of $5,644m* and CRL Ltd continues to expect that the Project will be delivered within that budget envelope.

CRL Ltd looks back on FY25 with much to be proud of. The outstanding teamwork, collaboration and innovation from all 800 workers on site contributed to CRL entering the home straight.

There is, however, still much to be done before we cross the finish line. New Zealand has never built an underground railway on this scale before and lessons we have learned from overseas tell us we are completing the most complex and challenging phase of any new railway. There are no short cuts. Completing remaining station fit-outs, urban realm works and the extensive number of systems testing and commissioning requirements successfully remains our priority before CRL Ltd will hand over to Auckland a railway that is both safe and world class.

Patrick Brockie Chief Executive Officer

John Bridgman Board Chair

* The approved budget of $5,644 million excludes future property sales proceeds that will flow directly to Sponsors and are expected to reduce the overall cost of the Project to $5,493 million, being the Target Delivery Cost amount stated in the Project Delivery Agreement. There has been no change in the total cost of the Project.

City Rail Link Ltd Annual Report 2025

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Progress Highlights Ngā Wā Hira o te Anga Whakamua

10

July 2024

September 2024

November 2024

CRL signalling systems were successfully integrated with the wider network.

A dawn karakia was performed to bless the reveal of Karanga-a-Hape Station's façade.

A Mahi Ōkawa was performed to bless the tunnels ahead of electrification.

August 2024

October 2024

December 2024

The first Tunnel Ventilation Fan was energised at Maungawhau Station.

Rail grinding was completed in the tunnels to prepare the tracks for test trains.

Essential Earthing and Bonding tests were carried out ahead of the tunnels being electrified.

City Rail Link Ltd Annual Report 2025

PROJECT OVERVIEW

January 2025

March 2025

May 2025

Beresford Square's new vent had its cladding panels installed.

The kaitiaki was installed in Te Waihorotiu Station’s ceiling.

More than 250 train drivers completed their classroom and simulator training as part of the preparation for operations to commence in the CRL.

February 2025

April 2025

June 2025

After electrification of traction power through the tunnels, a test train made its first journey through the CRL marking the commencement of dynamic train testing.

Testing with loaded trains took place with the train filled with 45 tonnes of sandbags, simulating maximum passenger holding weight.

Received Leading “As Built” certification for the C3 contract and the CRL Project as a whole from the Infrastructure Sustainability Council.

City Rail Link Ltd Annual Report 2025

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City Rail Link Project Contracts Ngā Kirimana o te Kaupapa City Rail Link The majority of the rail and station infrastructure work is being undertaken under the C3, C5 and C7 contract. With most of the construction completed, testing and commissioning now comprises the bulk of work remaining. The CRL is the first underground metro railway in New Zealand and therefore requires a heavy schedule of testing to build confidence in its safety and operability.

CRL Ltd has completed several contracts - Downtown Shopping Centre, C1, C2, C6 and station upgrades at Otahuhu and Newmarket included in C8. These contracts have been excluded from Table 1 – please refer to Annual Report 2023/24 for more information.

Table 1 Contracts underway in the 2024/25 financial year.

Contract

Completion* Status

Scope

Contractor

C3, C5 and C7 (contracts were combined)

Stations and Tunnels, Tunnel Connections, Rail and Station Systems Integration Design, procure, and deliver rail and station infrastructure and systems, including testing and commissioning, across the full geographic area of CRL from just south of Wyndham St to the North Auckland Line (NAL) at Mt Eden, and reinstating the urban realm and streetscapes in certain areas around the stations.

Link Alliance (Vinci, Downer, Soletanche Bachy, WSP, Aecom, Tonkin & Taylor, CRL Ltd)

Planned for completion in 2026

C8

Henderson Construction of a third platform with new track formation and platform remodelling works at Henderson Station.

KiwiRail Holdings Ltd

Planned for completion in 2026

C9

Waitematā Station Britomart East Reconfiguring of Britomart East junction to enable an increase in train capacity, including structural alternations to the existing tunnel, track slab and platforms.

KiwiRail Holdings Ltd

Completed

Other urban realm reinstatement (Britomart Plaza and Maungawhau)

Auckland Council Auckland Transport

Planned for completion in 2026

* ‘Completion’ means that the assets involved will be available for use. For Contracts C3, C5, and C7, 'completion' means that Practical Completion has been achieved. This is followed by a two-year defect liability period.

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City Rail Link Ltd Annual Report 2025

PROJECT OVERVIEW

What happens next?

• Completion of testing and commissioning including emergency response, shakedown tests, where the rail system will be operated as if it was completely ready for passenger service, validating the future timetabling and operating performance of the entire railway network once the City Rail Link has been integrated • Completion of track and platform remodeling works at Henderson • Urban realm reinstatement • Transfer of the completed assets to their ultimate owners • Managing the defects liability period while transitioning towards winding down the company • Refer also to CRL Ltd’s Statement of Performance Expectations for 2025/26 on our website

Te Waihorotiu Station platform

City Rail Link Ltd Annual Report 2025

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Statement of Performance Tauākī Mahinga Objectives The Statement of Performance Expectations (SPE) for 2024-2025 acts in conjunction with the Statement of Intent (SOI) for 2025-2027 to assess CRL Ltd’s progress in delivering its main output class: ‘Deliver the Auckland City Rail Link project by November 2025’.

CRL Ltd’s overarching strategic objectives, as set out by CRL Ltd’s Sponsors in the Project Delivery Agreement, are to:

01

02

03

04

05

06

Improve transport access in and around the city for a rapidly growing Auckland

Improve the efficiency and resilience of the transport network of urban Auckland

Significantly contribute to lifting and shaping Auckland’s economic growth

Provide a sustainable transport solution that minimises environmental impacts

Contribute positively to a liveable, vibrant, and safe city

Deliver the Project with a ‘best for Auckland’ approach

In response to these requirements, CRL Ltd has established five strategic areas, each with an outcome statement that describes the success of the Project based on CRL Ltd’s scope of accountability. CRL Ltd has held itself accountable to these outcomes throughout the Project and will continue to set targets for them until the Project is completed.

CRL Ltd’s five strategic areas and outcome statements, consistent with those set out in the SOI, are:

1. Project Delivery

Deliver a safe, operable, quality rail link and streetscapes to agreed configurations in a timely manner

2. Funding Envelope

Achieve financial efficiency

3. Community and Stakeholder Engagement

Deliver a high level of communication and engagement

4. Health and Safety

Build an underground rail link that is safe for constructors, operators, maintainers, and users

5. Sustainability and Social Outcomes

Achieve sustainability excellence including social outcomes

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City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Performance targets and measures for FY25 were established by CRL Ltd management with input from CRL Ltd’s Board and Sponsors to communicate the progress of the project across both construction and non-construction activities.

Information within this Statement of Performance and the remainder of the Annual Report reflects reporting against strategic objectives set out in the SOI. Service performance information can be found on pages 12 to 33 of this annual report.

Beyond delivery of the CRL to its ultimate owners, responsibility for realising wider economic, social and environmental benefits rests with Sponsors.

Statement of Compliance The Statement of Performance has been prepared in accordance with the requirements of the Crown Entities Act 2004, which include the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP) and the Companies Act 1993.

The Statement of Performance has been prepared in accordance with Tier 1 Public Benefit Entity financial reporting standards, which have been applied consistently throughout the period.

Disclosure of judgements and assumptions CRL Ltd has selected performance targets to reflect material progress of the Project.

Consideration has been given to areas of interest for a wide range of stakeholders, including businesses, the local community and New Zealanders generally.

Judgements have been disclosed throughout the performance reporting. Further, there are conditions that may impact on CRL Ltd’s performance targets and result in a variation from the anticipated or forecast results. In some cases, City Rail Link Ltd Annual Report 2025

CRL Ltd has aggregated performance to provide an overall assessment of the rating applied.

There were no significant judgements made on aggregation of performance data.

CRL Ltd’s performance against each target will be rated as follows:

4 Achieved: the target has been completely met

✘ Not achieved: the target has not been fully

–

achieved

Not applicable

This rating scale is different to the measurement and disclosure in last year's annual report, where a method of assessing performance using a sliding scale of achievement was used. Prior year results have been rated as “not achieved” if they were previously rated as “substantially achieved” or “partially achieved”.

Performance Measures The following section of the Annual Report will compare CRL Ltd’s progress towards achieving the performance measures in the SPE 2024-2025, which are consistent with the measures in the SOI 2025-2027, and will provide explanations for major variances.

Each output will be accompanied by some of the related highlights from the year.

CRL Ltd monitors progress against performance targets through its monthly and quarterly reporting to the CRL Ltd Board and Sponsors.

For the performance targets related to approved appropriation (i.e. funding) for the CRL Project and the Targeted Hardship Fund, these are consistent with the Estimates and Supplementary Estimates within the Vote Transport for FY25.

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Performance Targets and Measures Ngā Whāinga me Ngā Whakaritenga Whakatutukitanga Project Delivery Outcome: CRL Ltd will deliver a safe, operable, quality rail link and streetscapes to agreed configurations in a timely manner.

The CRL is being built to help a modern Auckland prosper and grow. The project’s 3.45-km-long tunnels under central Auckland will deliver a rail link that will transform the city’s wider rail network, enabling more frequent, reliable and faster journeys.

fit-outs. This included significant progress on the installation of associated systems required to operate CRL and the commencement of a comprehensive testing and commissioning programme for all aspects of the railway and station integrated systems.

During FY25 the Project transitioned from being a construction project to being a railway project, with the majority of work now focusing on train running, finishing systems installation, planning and carrying out a comprehensive testing and commissioning programme and preparing all the required documentation and obtaining regulatory approvals. Two pivotal Project Delivery highlights dominated FY25: the start of train testing in the tunnels and substantial completion of station

Early in the financial year, the first delivery performance target was achieved with permanent power being available at all the stations. This means that high and low voltage areas were energised, and Notices of Energisation were issued.

Test train passes through Waitematā Station

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City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Dynamic Train Testing Dynamic Train Testing refers to the controlled operation of running trains through the new tunnel system at varying speeds to test signalling systems, power supply, track integrity, and overall functionality to validate infrastructure performance and operational readiness.

The energisation of the 25 kV traction power system—essential for the operation of rail services within both tunnels—was initially scheduled for completion by October 2024. However, due to the additional time required for the final phases of construction, as well as comprehensive inspection, compliance and safety procedures, this critical prerequisite for train testing was achieved in February 2025. This delay has led to a review of the Project's overall delivery timeline, with Practical Project Completion now expected in 2026.

With the joint approval of accredited rail operators (KiwiRail and Auckland One Rail) through a Safety Stage Gate, this milestone marked the commencement of dynamic testing, enabling the activation of overhead lines and substations to support live test train operations under real-world conditions.

On 12 February 2025, the first test train operated at a controlled speed of 5kph. Rapid progress thereafter enabled a swift increase in both train speed and frequency, demonstrating strong momentum and effective system integration.

Key dynamic train tests assessed acceleration and braking performance, traction power system and overhead wiring integrity, rail corridor and station platform spatial proving, signalling functionality, noise and vibration levels, and journey time performance, yielding encouraging results that have enabled driver training to commence.

Tests have also been performed under degraded conditions including temporary speed restrictions, trains stranded at or between stations, lift breakdowns, and train failures.

The commencement of Dynamic Testing fulfilled one of the Statement of Performance City Rail Link Ltd Annual Report 2025

Expectations 2024/25 targets for Project Delivery, a milestone that also marked CRL’s transition from a construction to railway project, with changing risks and hazards, and a new focus of testing with moving trains.

Trial Running and Operational Readiness This involves a comprehensive and staged process designed to simulate full operational conditions – timetable simulation, load testing, system validation, driver training and emergency preparedness to validate system performance before passenger services begin.

Trial running began in April, simulating full timetable operations without passengers. Load testing was conducted using 3,000 sandbags (45,000kg) placed in a test train to replicate maximum passenger weight to validate that infrastructure and systems can perform reliably under realistic operational conditions.

In parallel, driver training and control room simulations were undertaken, with over 250 train drivers successfully completing classroom and simulation-based training.

Substantial progress was made in system validation, with over 7,000 of the more than 16,000 individual tests completed to ensure all systems function correctly and safely.

In addition, the first stage of emergency response drills was successfully conducted in collaboration with St John's, Police, and, Fire and Emergency New Zealand and Auckland Transport, further enhancing operational readiness.

Station Fit-Outs The fit-outs of the two new central city underground stations at Karanga-a-Hape and Te Waihorotiu and redeveloped Maungawhau Station include the installation of all the systems – which include fire, ventilation, security, communications and lighting, the installation of lifts and escalators (a 40 metre-long escalator, the longest in New Zealand, was installed at Karanga-a-Hape) and ticket gates - required to allow both stations and trains to operate safely and efficiently.

Construction works at all three stations was about 17

95 per cent finished by the end of FY25 and is expected to be finished by December 2025.

CRL’s successful partnership with Tāmaki Makaurau iwi through its Mana Whenua Forum has produced striking exterior and interior station designs that combine the city’s cultural past with its vision for the future.

Systems Integration and Testing CRL is actively progressing through its Systems Integration Testing (SIT) phases, a crucial step before the network opens in 2026.

This phase involves verifying that all newly installed systems, such as signalling, traction power, CCTV, station controls, and air-conditioning and environmental systems, function both independently and as part of a unified rail network.

Detailed test plans are being executed to ensure the physical and functional integration of CRL

infrastructure with existing train systems and Auckland Transport’s IT and communication networks. These tests are conducted across the network and coordinated through the new Rail Operations Centre at Maungawhau Station, which also oversees integration with Waitematā Station.

In terms of System Integration Testing (SIT), Phase 1 has been completed, verifying communication between stations and control centres, while Phase 2 is underway, focusing on end-to-end testing of operational scenarios, including emergency simulations.

As part of Systems Integration and Testing, over 80 per cent of station systems have been tested and commissioned, fire life safety systems have passed initial compliance checks, and SCADA (Supervisory Control and Data Acquisition) systems have been integrated across all stations.

Getting platforms ready for passengers 18

City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Challenges and Risk Mitigation

Henderson Station Upgrade

Testing and Commissioning is recognised as the most complex phase of any new rail system, requiring a highly coordinated effort. This complexity is further heightened by the integration with existing legacy rail infrastructure.

The Henderson Station upgrade plays a strategic role in advancing the broader objectives of the CRL by enhancing the Western Line’s capacity and operational efficiency.

Link Alliance’s testing programme is supported

by CRL Ltd, KiwiRail, Auckland Transport and Auckland One Rail. Together, they are undertaking over 16,000 individual checks to ensure a successful launch.

Collaboration, shared expertise, and pooled resources are essential to identifying and resolving issues.

Waitematā Station (Britomart East C9) CRL Ltd’s C9 contract works were completed with the Certificate of Train Running issued in January 2025 and the tracks opened, ahead of the May 2025 target in the Statement of Performance Expectations 2024/25.

This multi-faceted three-year reconfiguration project transformed the station from a terminus into a two-way through-station, significantly enhancing its capacity and operational flexibility.

Key upgrades included structural modifications to the tunnel wall, reconfigured track layouts, installation of track slabs, platform improvements, utility relocations, beam strengthening, and upgrades to control and driver rooms.

The final phase involved critical track works at the eastern end, including overhead line realignments and signalling enhancements within the Britomart Tunnel.

These improvements are essential for supporting increased rail frequency, higher approach speeds, and future nine-car train operations enabling a step-change in capacity, connectivity, and reliability of Auckland’s rail network.

City Rail Link Ltd Annual Report 2025

The addition of a third platform and new track infrastructure will establish Henderson as a potential terminus for some services, helping to ease congestion at central city stations and better distribute passenger volumes. This operational flexibility enables more efficient train management and helps reduce delays, directly supporting CRL’s goal of increasing train frequency to every eight minutes during peak periods.

Furthermore, the upgrade strengthens the reliability and resilience of the rail network — critical for accommodating the substantial growth in passenger numbers anticipated once the CRL becomes fully operational.

CRL Ltd has entered into a funding agreement with KiwiRail so that KiwiRail can carry out the required works at Henderson.

Construction began in October 2024 and will continue until early 2026. In FY25, several key components of the upgrade were completed under the Early Works programme. Notable milestones included the installation and relocation of utilities and cable ducting, along with the completion of track removal and piling works.

The next phase of the Henderson Station upgrade includes construction of a third platform, installation of additional tracks, a new emergency exit bridge, and continued upgrades to the track layout, overhead lines, signalling systems, and drainage infrastructure.

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Urban Realm Reinstatement Throughout FY25, CRL Ltd and Link Alliance worked closely with Auckland Council and Auckland Transport to co-ordinate works that are transforming public spaces surrounding all CRL stations.

The reinstatement of the Waitematā Station Plaza forms part of the broader regeneration of the Britomart Precinct, aimed at creating a high-quality network of public spaces. This will encompass the Britomart Precinct, Takutai Square, Waitematā Station, Te Komititanga, and Commercial Bay. Once finished, the plaza will function as a key entrance and exit point for the station, also providing a welcoming and relaxed space for people to gather and connect, while offering seamless access to the heart of Auckland’s city centre.

Construction began in July 2024 and remains on track to achieve completion in early 2026.

Urban realm reinstatement in the Te Waihorotiu and Maungawhau Station precincts are aligned with Auckland Council’s urban design strategy, featuring widened footpaths, upgraded paving, enhanced lighting, new seating, and tree plantings to enrich the public space experience.

Most of Albert and Victoria Streets have been reopened to pedestrians with widened footpaths, new paving, improved lighting, seating and tree plantings, integrating with Auckland Council’s urban design strategy. Victoria Street also opened to vehicle traffic in its permanent new layout.

During FY25 the project also began rebuilding the historic 19th century bluestone wall in midcity’s Albert Street. The wall had been removed temporarily block-by-block during construction of the Te Waihorotiu Station. Surrounding Maungawhau station, the Mt Eden Road bridge was resurfaced and works completed on Fenton Street.

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Reinstatement of the station precincts is distinct from over station development, which includes the construction of residential, commercial and retail spaces in the vicinity of the stations. Eke Panuku (now Auckland Council) and Kāinga Ora were appointed as the lead agencies responsible for over station development. CRL Ltd provides information and support to Auckland Council to assist in its engagement with developers.

Asset Handover and Day One Operations The Link Alliance works are expected to reach Practical Completion within 2026. Around this time, CRL Ltd will transfer the completed assets to their ultimate owners and operators to enable the CRL to open to the public. In FY25, $120 million of completed assets were transferred to KiwiRail and Auckland Transport, including most of the C3 Britomart station service rooms, C9 Britomart East structures, C8 Newmarket track and overhead line works, C8 Otahuhu station and track upgrade, and C9 Strand station upgrade.

Preparatory work, including documentation for the final asset transfer is progressing, working closely with KiwiRail, Auckland Transport and rail operator Auckland One Rail through the One Client Alliance.

Maintenance teams are engaged to support familiarisation and timely resolution of any outstanding defects. The Day One Readiness Plan has been finalised, encompassing staffing requirements, customer service protocols, and safety procedures to support the commencement of operations.

While CRL Ltd will not be operating rail services on the CRL once the Project is complete, the Company will nevertheless support the ultimate asset owners in carrying out their own operational readiness initiatives during dynamic testing, helping them to take full control of the Project’s assets.

City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Performance Targets and Measures 20251 Targets and Measures 2025

Permanent Power available to all Stations

by August 2024 2 25kV Traction Power Energisation by October 2024 3

Commencement of Dynamic Testing after power energisation 4

Britomart East C9 contract stage 4 to 6 track and signalling complete

by May 2025 5

Performance in 2025

Performance in 2024

4

–

Permanent power was available to all stations by August 2024

No comparable target

–

✘ Traction power energisation was achieved in February 2025

No comparable target

–

4 Dynamic Testing also commenced in February 2025 shortly after energisation

No comparable target

4

✘

Certificate of Train Running was signed in January 2025 to put the asset into service.

Stages 4-6 structures completed.

Rail track and signalling physical works substantially complete (based on cost to complete), final section delayed until early 2025.

1 Project Delivery performance targets are set each year to reflect project milestones relevant to that year. More information is available in the SPE 2024-2025.

2 The measure is assessed by the date of approval of the Notice of Energisation documents to the main high and low voltage rooms at each of Maungawhau, Karanga-a-Hape and Te Waihorotiu stations. The documents are prepared and approved by Link Alliance.

3 This measure refers to the livening of the overhead lines that provide electricity to the trains. The measure is assessed by the date of authorisation of the Works Compliance Certificate, prepared by Link Alliance. The Independent Certifier has also certified that all required approvals and documentation were completed.

4 This measure refers to starting testing trains in the CRL, evidenced by the Certificate of Train Running issued by KiwiRail.

5 Completion means that the works are fully delivered (subject to the 12-to-24-month defect liability period) and the asset involved is available for use. In FY24 completion was defined as follows: Completed means that Practical Completion has been achieved. The FY25 measure was assessed based on the issuance of the Certificate of Train Running by KiwiRail. Works were able to be completed during the Christmas 2024 Block of Line ahead of the target date. The FY24 target of completion of the full Britomart East C9 contract by June 2024 was not met - Stages 4 to 6 structure works were completed, however Stages 4 to 6 track works were not complete, as final signalling works were delayed to the December 2024/January 2025 Christmas Block of Line period due to scheduling prioritisation.

Fire and Emergency drills to test safety systems City Rail Link Ltd Annual Report 2025

21

Funding Envelope Outcome: Achieve financial efficiency As CRL progresses towards completion, maintaining delivery within the approved budget continues to be a key priority. In the SPE 20242025 a specific measure was added on delivery of the Project within budget to reflect the focus by CRL Ltd and Sponsors on project cost. Forecast project costs are continuously monitored and reported monthly to the CRL Ltd Board and Sponsors. At 30 June 2025 the forecast total project costs remained within the overall project budget set out in the Project Delivery Agreement (PDA).

In 2024/25, CRL Ltd received $438 million1 in funding from the Sponsors (compared to $651 million in 2023/24). This funding was less than the budgeted amount of $516 million.

The approved Appropriation for the Crown’s 50 per cent share was $258 million. One of the SPE 2024/25 Funding Envelope targets was for Project spend to be at least 90 per cent of the approved Appropriation. This target has not been achieved with $219 million spent (85 per cent of the appropriation). The underspend was, in large part, due to slower construction progress – and therefore spend – on the C3/5/7 works.

CRL Ltd maintains tight discipline over corporate costs which continue to come within the budget despite inflation pressures, thus fulfilling the third SPE 2024/25 Funding Envelope target. These costs are monitored and reported on monthly.

1 Forecast total project cost is updated monthly based on the latest programme and cost information. The forecast is based on actual costs to date and an estimate of the costs to complete. Costs to complete include forecast information prepared by CRL Ltd (for example, for corporate and property costs) and gathered from relevant third parties carrying out work such as design, construction, testing, regulatory and assurance services. The preparation of the forecast requires judgement as it is based on a range of assumptions about future events.

22

NZ’s longest escalator (40 metres) at Beresford Square City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Performance Targets and Measures 2025 Targets and Measures 2025

Deliver the Project within the approved budget as per the PDA target project cost 3

Performance in 2025

Performance in 2024 2

4

4

Forecast total project cost at 30 June 2025 is within the PDA target project cost of $5,644 million.

Forecast total project cost at 30 June 2024 was within the PDA target project cost of $5,644 million.

✘

4

$219 million funded (85% of appropriation)

$325.5 million funded (94% of appropriation)

4

4

Project spend of at least 90 per cent of approved Appropriation ($258m) Operate CRL Ltd’s corporate functions within the approved budget 4

2 The FY24 measure of "Monthly financial and variance reporting of project costs on a cost to complete basis and to budget" was removed in preference of the outcome measure on delivery within approved budget.

3 The PDA target project cost is based on a P50 estimate, meaning that there is a 50% probability the actual project cost could be below or above that number. The approved budget of $5,644 million excludes future property sales proceeds that will flow directly to Sponsors and are expected to reduce the overall cost of the Project to $5,493 million, being the Target Delivery Cost amount stated in the Project Delivery Agreement. This amount includes the defect liability period and ongoing operating costs of CRL Ltd. There has been no change in the total cost of the Project.

4 Corporate functions are as defined in the finance system and include finance, legal, people, communications, IT and office costs. The budget is set as part of the SPE process and reported quarterly to the Board. No judgement is applied in the assessment of this measure.

Sponsor Funding of CRL Ltd $1.2b

$1.0b

$0.8b

$0.6b

$0.4b

$0.2b

0.0

Pre CRLL

2017 – 2018

2018 –2019

City Rail Link Ltd Annual Report 2025

2019 – 2020

2020 – 2021

2021 –2022

2022 – 2023

Actual 50% Auckland Council

Budget 50% Auckland Council

Actual 50% Crown

Budget 50% Crown

2023 – 2024

2024 – 2025

23

Community and Stakeholder Engagement Outcome: Deliver a high level of communication and engagement CRL Ltd continued its commitment to transparent communication with communities and stakeholders during the 2024/25 financial year.

Significant Project highlights, such as the first test train, were also significant communication milestones. Coverage was wide reaching across multiple platforms, including newsletters, stakeholder presentations, social media, media sites and broadcast television.

Over 2024/25, CRL Ltd achieved >350,000 likes on social media posts and >1.2 million direct views of videos, both exceeding the SPE targets, while 8 media releases did not meet the intended sub-target.

The overall level of communication and engagement reflects the current phase of the Project in terms of being able to create engaging videos and social posts to effectively showcase progress as opposed to media announcements.

In 2024/25, CRL Ltd continued to provide support through the Targeted Hardship Fund (THF) to eligible businesses significantly affected by construction disruption. Applications were processed and approved in a timely manner, with all payments having been made to applicants within 30 days of receipt of their completed application and adhering to the Sponsors’ guidelines and expectations regarding administration of the fund.

As construction impacts from the Project decrease, the level of financial assistance provided to businesses is decreasing accordingly. CRL Ltd is prioritising clear communication with THF recipients, ensuring that they are well-informed about any reductions in their payments and when payments are likely to cease completely.

CRL Ltd monitors wider stakeholder perception of the Project through a number of avenues including media sentiment, engagement with CRL Ltd’s social media channels, direct communication with affected businesses and project neighbours as well as through Auckland Council’s “Perceptions of City Development Projects” survey - a public opinion survey to assess Aucklanders understanding and perception of major city centre development projects, including the CRL. Findings from the last five surveys conducted between February 2022 and December 2024, each gathering responses from around 1,000 Aucklanders, indicate a steady trend across key perception areas 1.

Analysis of public sentiment revealed a consistently high level of awareness of CRL, averaging 78 per cent over the survey period.

Notably, the greatest increase in public knowledge was observed in understanding the scale of the Project and the anticipated rise in train usage upon completion.

Public support for the Project has shown a positive trajectory, reaching 62 per cent in December 2024 (58 per cent in August 2023), while perception of value for money remained steady at 54 per cent (53 per cent August 2023), as did the understanding of the project’s potential negative impacts while it is being completed.

Encouragingly, public enthusiasm about Auckland’s future has grown, with 53 per cent expressing optimism driven by the Project (46 per cent August 2023).

These findings indicate a consistently stable and progressively strengthening public perception of the Project’s ability to deliver its intended outcomes and long-term benefits.

1 Information is from the "Aucklanders' perceptions of city development projects" survey Wave 10 report prepared by Verian. Around 1,000 people were interviewed for each survey wave. The margin of error is +/- 3.1 per cent.

24

City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Performance Targets and Measures 2025 Targets and Measures 2025

Performance in 2025

Performance in 2024

✘

✘

>350,000 likes on social

Achieve total over 12 months of >4,000 likes media posts (achieved) on social media posts, >15,000 direct views >1.2 million direct views of videos, and 25 media releases of videos (achieved) 8 media releases (not achieved)

Increased public participation through events (aiming for 8 events) and site tours (aiming for 25 site tours)

Targeted Hardship Fund payments made to successful applicants within 30 days of CRL Ltd receiving a completed application

4

>134,000 likes on social media posts (achieved)

4

4

>1.3 million direct views of videos (achieved)

4

✘

18 media releases (not achieved)

✘

4

4

8 events and 33 site tours 2

10 events and 63 site tours

4

4

Payments made on average within 14-21 days of receipt of completed and successful applications

Payments made on average within 14-21 days of receipt of completed and successful applications

2 There were fewer site tours compared to the prior year due to the stage of the project with dynamic testing having begun and reduced access to site.

Video footage of the test train running was well received, generating high levels of public engagement with over 91,000 views across multiple organisational channels.

City Rail Link Ltd Annual Report 2025

25

Health and Safety Outcome: Build an underground rail link that is safe for constructors, operators, maintainers and users CRL Ltd aspires to health and safety excellence and has embedded this in a Health and Safety Strategy summarised as ‘Mahia te mahi, hei painga hei oranga mo tātou katoa,’ or ‘to do the work for the good of everyone.’

CRL Ltd collects and analyses health, safety, and environmental data as part of the Company’s safety management system. All major incidents are investigated and preventative actions are put in place by the Link Alliance and other Project contract suppliers. The Company regularly inspects construction sites to check that minimum Health and Safety requirements are met across all contracts.

The current industry standard measurement of Health and Safety performance is the Total Recordable Injury Frequency Rate (TRIFR). CRL Ltd has again met its TRIFR target, recording a 12-month moving average TRIFR of 1.1 recorded injuries per million hours worked on the Project (target six or less).

This positive outcome is a result of the health and safety focus, particularly with regards to

training applied by CRL Ltd and the Link Alliance in the delivery of the CRL, and also reflects the changing nature of the project away from heavy construction to systems installation, testing and commissioning. In 2025, the focus for the Link Alliance Health and Safety week was to use aspects of Te Whare Tapa Whā (a Māori health and wellbeing model) to teach kaimahi how to look after every part of ourselves: our body, mind, spirit, whānau, and connection to the whenua.

The Link Alliance uses the internationally recognised Health and Safety Performance Index (HSPI) to assess the quality of their operations.

The HSPI measures a range of Health and Safety Indicators and aggregates them into an overall HSPI score. The Link Alliance has been reviewing these indicators and aligning them with the transition from heavy civil and tunnelling works to the delivery of architectural, building fit-out, and rail systems. The 2024/25 target was consistent with the prior year. The Link Alliance calculated the June 2025 rolling average HSPI score at 89 out of 100, an assessment reviewed and corroborated by CRL Ltd and the Project Alliance Board.

3

3

2

2

1.5 1

0

1.3

1.1

1.2 1.0

1.0

Jul 24

Aug 24

0

0

0

0

0

Sep 24

Oct 24

Nov 24

Dec 24

Jan 25

1.4

1.1 1

Medical Treatment Injuries 26

1.1

1 0

1.6

1.5

Feb 25

1.1

1

Mar 25

Lost Time Injury

0

0

0

Apr 25

May 25

Jun 25

1

Frequency Rate

Quantity

Injuries by Classification and TRIFR (per million hours)

0

TRIFR City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

Performance Targets and Measures 2025 Targets and Measures 2025

Total Recordable Injury Frequency Rate (TRIFR) at or below six injuries per million hours worked 2 Health Safety HSPI score of ≥80 on average over a 12-month period Publish an annual safety assurance summary report by 30 June 2025, reporting on safety for operations, maintenance, and users 3

Performance in 2025

Performance in 2024 1

4

4

1.1 injuries per million hours worked

1.8 injuries per million hours worked

4

4

Link Alliance had a moving average HSPI score of 89/100

Link Alliance had a moving average HSPI score of 90/100

4

4

1 The FY24 measure relating to the Risk Management Maturity Model (RM3) was removed as it was completed in that year and was no longer considered a key measure due to the advanced stage of project construction.

2 The TRIFR calculation is the ratio of lost time injuries and medical treatment injuries—defined as injuries requiring treatment by a medical professional, recorded over the previous 12 months, per one million hours worked by personnel from CRL Ltd and its subcontractors.

3 This report is published by way of distribution to New Zealand Transport Agency Waka Kotahi, Auckland Transport, KiwiRail Holdings Ltd, Auckland One Rail and Link Alliance.

Safety briefing City Rail Link Ltd Annual Report 2025

27

Sustainability and Social Outcomes Outcome: Achieve sustainability excellence including social outcomes From the outset the CRL has targeted an "Excellent" As Built Infrastructure Sustainability (IS) rating.

More information on the IS Rating Scheme is available in the Annual Report 2023/24.

This year marked the culmination of many years of work when the Project was awarded a "Leading" Infrastructure Sustainability As Built rating by the Infrastructure Sustainability Council. This overall project rating was awarded based on the C3 contract gaining a "Leading" Infrastructure Sustainability As Built rating, the C2 contract an "Excellent" As Built rating1 and the C1 contract a "Leading" As Built rating.

Evidence of carbon emission reduction was integral to achieving this. The reduction of carbon emissions associated with construction and projected operational energy over the 100-year design life of the CRL targeted were 25 per cent and for embodied carbon 15 per cent.

The SPE 2024-2025 target of 25 per cent was not achieved (actual result: 22.9 per cent) because the energy-saving strategies that were incorporated into station and tunnel design and build will deliver lower projected annual carbon savings than initially anticipated when setting the SPE target.

The IS verified carbon savings from the project include: • embodied carbon: 27,583 tCO2-e (13 per cent) • the project achieved a saving of over 21,285 tonnes of CO2-e by replacing cement with fly ash alone.

• construction energy: 6,968tCO2-e (22.9 per cent) The operational energy for the stations, tunnels and streetscape is projected to have an annual reduction of 296 tCO2-e (22 per cent) from the base case, with a design which will support wider flow-on emission reductions and benefits for the duration of the City Rail Link asset’s lifespan.

CRL has raised the bar for the infrastructure and construction sector in many ways, including the replacement of cement with fly ash as a low carbon alternative. With an industry average of 3.7 per cent cement replacement in Aotearoa New Zealand CRL has achieved a replacement rate of 29 per cent.

Other significant achievements include the diversion of over 1 million tonnes from landfill, with the project achieving an overall diversion of 99 per cent of waste generated during construction. A significant achievement which sets a high bar for future projects.

CRL Ltd made a commitment to creating a legacy of positive social outcomes by enhancing career development and training opportunities for mana whenua, Māori, Pasifika, and youth. Our awardwinning social outcomes initiatives have supported delivery of over 2,500 training courses for mana whenua, Māori, Pasifika, and youth. The target for Career Development Plans for Māori, Pasifika and Youth working with the Link Alliance has again been met.

The Project has been designed with the principles of sustainability and social development in mind, ensuring that CRL Ltd’s contribution to these areas will endure over time.

Carbon Measurement Methodology CRL Ltd adheres to the requirements set by the International Standard ISO 14064.1 and the guidelines set by the Ministry for the Environment for the verification and reporting of greenhouse gas (GHG) emissions and sustainability outcomes.

In FY24, Toitū Envirocare completed an external audit of the Project's energy model for C3 and confirmed that the model was sound. The ISC has also been retained to verify and provide performance ratings across key performance

1 The Project’s sustainability performance is externally verified by the Infrastructure Sustainability Council (ISC) using a rating tool developed in partnership with mana whenua to consider Aotearoa’s unique cultural context. The ISC awards one certification for infrastructure design and a second ‘as-built’ certification once the design has been constructed. A score of 65/100 or higher is considered ‘Excellent’, and a score of 75/100 or higher is considered ‘Leading’.

28

City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

targets. Notwithstanding this, quantifying GHG emissions is subject to inherent uncertainty as scientific knowledge and methodologies are still evolving in this area, as are GHG reporting and assurance standards.

For more information about the Project's sustainability and social outcomes refer to the "Health, Safety, Environment and Sustainability Report 2024" at www.cityraillink.co.nz/publications.

Performance Targets and Measures 2025 Targets and Measures 2025

C3 to achieve ‘Excellent’ Infrastructure Sustainability (IS) As Built rating

C3 to achieve 25% reduction (versus base-case) in construction and projected operational energy-related greenhouse gas emissions (tCO₂e) ≥50% of C3 focus group (Māori, Pasifika and Youth) Link Alliance employees with Career Development Plans

Performance in 2025

Performance in 2024 3

4

–

Achieved ‘leading’ which is the highest possible rating.

Not a measure in 2024, however the self-assessed projected As Built rating was rated as ‘leading'.

✘

✘

22.9% projected reduction

19.7% projected reduction

4

4

52.6% with Career Development Plans at 30 June 2025

58.8% with Career Development Plans

3 Some FY24 measures were removed as the project progressed through the construction phase. Explanation for why these measures were removed is contained in the Statement of Performance Expectations 2024-2025.

Workers take a break from their hard mahi City Rail Link Ltd Annual Report 2025

29

Financial Objectives Output Class Cost of Service Statement City Rail Link Development Actual 2025 $(000)

Budget 2025 $(000)

Actual 2024 $(000)

Total revenue

4,346

4,539

7,306

Total expenses

(160,746)

(287,952)

(49,480)

Net surplus/(deficit)1

(156,400)

(283,413)

(42,174)

Actual 2025 $(000)

Estimate 2025 $(000)

Actual 2024 $(000)

Total Funding

825

1,808

1,212

Total Expenditure

(825)

(1,808)

(1,212)

Net surplus/deficit

0

0

0

1

Variance of FY25 Actual deficit to Budget was mainly due to delay in asset transfers.

Targeted Hardship Fund* Funding and Expenditure

* The Targeted Hardship Fund funding and expenditure in the table above represents the Crown's 50% share only.

Reporting against Appropriation Vote Transport – Supplementary Estimates of Appropriations 2024/25 – Budget 2025.

Auckland City Rail Link Non-Departmental Capital Expenditure The Crown is a 51 per cent shareholder of CRL Ltd and funds CRL Ltd on 50:50 basis with Auckland Council. The Crown and Auckland Council fund CRL Ltd by subscribing to equity in the company. The appropriation is to achieve construction and operational readiness of the City Rail Link project. An explanation of the variances from budget can be found in note 16 of the Financial Statements within this Annual Report.

Assessment of Performance City Rail Link Ltd

Target 2025 Actual 2025

Deliver the Auckland City Rail Project Link project by end 2025 delivery targets are met

THF payments made within 100% 30 days of CRL Ltd receiving a completed application*

Actual 2024

✘ 3 of 4 delivery targets were achieved.

✘ 1 of 4 delivery targets were achieved. 3 targets were reported as substantially achieved using a scale rating applied for the 2023/24 year.

4

4

Achieved. 100% of Achieved. 100% of payments payments made within made within 30 days of receiving 30 days of receiving a a completed application completed application

* Clarification: payments are made on a completed and "successful" (approved) application 30

City Rail Link Ltd Annual Report 2025

STATEMENT OF PERFORMANCE

CRL Ltd receives Appropriation through Vote Transport for both the Targeted Hardship Fund and Capital Expenditure for the project. Our reporting against these Appropriations is as follows:

Capital Expenditure This is a multi-year Appropriation (MYA) limited to the Crown’s 50 per cent share of the total project capital costs of the City Rail Link Project. The previous Appropriation commenced on 1 July 2020 and expired 30 June 2025.

Effective 1 July 2024, a new MYA was established to supersede the previous arrangement. Accordingly, unspent funds during FY24 were duly transferred to the newly established MYA. Appropriation for Infrastructure

$(000)

Original Appropriation (from 1 July 2024)

636,647

Adjustments FY21–FY24

13,500

Appropriation remaining 1 July 2024

650,147

Actual spend to 30 June 2025

(219,000)

Appropriation remaining 30 June 2025

431,147

Targeted Hardship Fund This is a multi-year Appropriation limited to the Crown’s 50 per cent share of the payments and administration costs to eligible businesses for hardship associated with sustained and major disruption relating to the C3 package of works for construction of the City Rail Link. The Appropriation commenced on 1 July 2021 and expires 30 June 2026.

Appropriation for Infrastructure

$(000)

Original Appropriation (from 1 July 2021)

6,000

Actual spend 1 July 2021 to 30 June 2024

(4,007)

Appropriation remaining 30 June 2024

1,993

Actual spend to 30 June 2025

(825)

Appropriation remaining 30 June 2025

1,168

City Rail Link Ltd Annual Report 2025

31

Company Overview Te Hanganga Rangatōpū Corporate Structure CRL Ltd is a Crown Entity created to manage the delivery of the City Rail Link transport infrastructure project.

CRL Ltd commenced operations on 1 July 2017 following an agreement by the Company’s Sponsors to jointly fund the Project. Incorporated under the Companies Act 1993, CRL Ltd is a majority-Crown-owned entity under Schedule 4A of the Public Finance Act 1989 and Part 2 of Schedule 1 of the Ombudsman Act 1975. In addition, the Public Finance Act 1989 applies

several provisions of the Crown Entities Act 2004 to CRL Ltd as if it were a Crown Entity under that Act. The Crown holds 51 per cent of voting shares and Auckland Council the remaining 49 per cent. Both Sponsors contribute 50 per cent of the cost of the Project by equity contribution.

Columns and cross beams at the Mercury Lane escalators 32

City Rail Link Ltd Annual Report 2025

COMPANY OVERVIEW

New Zealand Government (Crown)

Auckland Council

SPONSORS

CRL Ltd

CRL Ltd Board

CRL Ltd Chief Executive

Audit and Risk Committee

People and Remuneration Committee

CRL Ltd Senior Leadership Team

City Rail Link Ltd Annual Report 2025

33

City Rail Link Ltd Board Te Poari o City Rail Link Ltd

John Bridgman

Russell Black

John has over 35 years’ experience in engineering and project management roles in major infrastructure across Australasia and Asia. He was previously Chief Executive of Crown Infrastructure Delivery Limited and Managing Director of AECOM in New Zealand and AECOM Industry Director - Civil Infrastructure in Australia.

John is a Director of Kāinga Ora - Homes and Communities where he chairs their Investment and Delivery Committee. He was previously a Director of New Zealand Transport Agency Waka Kotahi.

Russell has 34 years delivery experience of underground railways in Hong Kong, Singapore, London, and China. He was Project Director for the London Jubilee Line Extension; and Projects Director for the Hong Kong Airport Railway and all subsequent MTR projects in Hong Kong and China until 2010. Since Russell's return to New Zealand, he has provided strategic management advice on Australian rail projects. Russell is the Independent Chair of the Melbourne High Capacity Metro Train Project Control Group. He is a former EQC Commissioner, Northpower Ltd Director, Metro Trains Melbourne Pty Ltd Director, Sydney Metro Advisory and Assurance Boards’ member.

He is an International Fellow of the Royal Academy of Engineers.

Chair

34

Director

City Rail Link Ltd Annual Report 2025

COMPANY OVERVIEW

Anne Urlwin

Brian Harrison

Malcolm Gibson

Anne is a professional Director and chartered accountant with wide-ranging governance experience, including in the infrastructure and construction sectors. Her current governance roles include chairmanship of Precinct Properties New Zealand Ltd and directorships of Vector Limited, Ventia Services Group Limited, and Infratil Limited.

Anne is a former Director of Chorus Ltd, Summerset Group Holdings Limited, Queenstown Airport Corporation Limited, Tilt Renewables Ltd and Steel & Tube Holdings Ltd and she is a former Chair of commercial construction group Naylor Love. Anne has served on several central and local Government entity boards.

Brian has a legal background with extensive domestic and international experience advising corporates, financiers, multinationals and Government bodies on major projects and infrastructure in a broad range of sectors.

Malcolm is a civil engineer with more than 40 years of experience in designing, building and operating underground urban railways in Hong Kong and Sydney. In addition to his role on CRL, he has been engaged as Technical Director on the Sydney Metro project from 2014 until December 2024 and was involved in the successful opening and commencement of operations of the 36 km Northwest section in May 2019 and the 15 km City section in August 2024. Malcolm has particular experience in the systems integration aspects which are essential for transitioning railways from construction projects into reliable, safe, operable and maintainable railways for the longer term.

Director

City Rail Link Ltd Annual Report 2025

Director

Director

35

City Rail Link Ltd Senior Leadership Team City Rail Link Ltd Ngā Kaihautū

36

City Rail Link Ltd Annual Report 2025

COMPANY OVERVIEW

Left to right Wayne Cooney One Client & Systems Director Russell McMullan General Manager Assurance & Integration Victoria Thackwray GM Corporate Relations & Communications Emma Kurtovich General Counsel & Company Secretary Patrick Brockie Chief Executive Officer Nicola Mills Chief Financial Officer Sandip Ranchhod General Manager Commercial Sumi Eratne Programme Delivery Director Sarah Hampton Head of People & Capability Madan Anand Programme Performance & Controls Director (not pictured) Peter Cunningham General Manager Project Handover (not pictured)

City Rail Link Ltd Annual Report 2025

37

CRL Ltd’s Key Contracts and Relationships For the Project to successfully integrate with the existing transport network and transfer the completed assets, it is essential for CRL Ltd to collaborate with the final asset owners – KiwiRail and Auckland Transport – as construction finishes and testing and commissioning is underway. These parties have co-located and arranged an informal alliance – known as the One Client Alliance.

Work around the large Maungawhau Station site 38

City Rail Link Ltd Annual Report 2025

COMPANY OVERVIEW

One Client Alliance

KiwiRail

City Rail Link Ltd

Auckland Transport Supported by Downer New Zealand Limited for ongoing maintenance and Auckland One Rail for operation of the stations and trains.

City Rail Link Ltd Annual Report 2025

39

Paoa ki uta, Paoa ki tai, Paoa ki tua

CRL Ltd’s Partnership with Mana Whenua For 13 years mana whenua and CRL Ltd have partnered to achieve positive results for Tāmaki Makaurau and wider Aotearoa in the delivery of the Project through the Mana Whenua Forum (Forum). Membership includes Te Ākitai Waiohua, Te Kawerau ā Maki, Ngāti Maru, Ngāti Paoa, Ngāi Tai ki Tāmaki, Ngāti Tamaoho, Ngāti Te Ata Waiohua, and Ngāti Whātua Ōrākei. The Forum has guided design of the stations, influenced health and safety practices, and ensured the sustainability of construction.

Successes in 2024/25 Many more of the Māori design features in the new stations were revealed during the 2024/25 financial year. The designs reflect the cultural and historical context of the surrounding area – making the CRL uniquely Tāmaki Makaurau.

Māori art greets you at Beresford Square entrance

In November 2024, Ngāti Whatua, as representatives of the Forum, conducted a Mahi Ōkawa through both tunnels to bless them ahead of energisation.

Pūkaea played at Mahi Ōkawa

CRL received a ‘leading’ IS Rating – the highest possible rating – for the project. Endorsed by the IS, we revised the criteria in partnership with the Forum to reflect the Aotearoa cultural context.

Highest praise for CRL’s sustainability work 40

City Rail Link Ltd Annual Report 2025

COMPANY OVERVIEW

Paoa ki uta, Paoa ki tai, Paoa ki tua

Te Hononga o CRL Ltd ki te Mana Whenua Kua 13 tau e mahi ngātahi ana te mana whenua me CRL Ltd ki te whakatutuki i ngā otinga pai rawa mō Tāmaki Makaurau me Aotearoa whānui i roto i te whakatutukitanga o te Kaupapa mā te Rūnanga Mana Whenua (Rūnanga). Ko ngā mema ko Te Ākitai Waiōhua, Te Kawerau ā Maki, Ngāti Maru, Ngāti Paoa, Ngāi Tai ki Tāmaki, Ngāti Tamaoho, Ngāti Te Ata Waiōhua, me Ngāti Whātua Ōrākei. I arahitia e te Rūnanga te hoahoa o ngā teihana, i whakauru whakaaro ki ngā tikanga hauora me te haumaru, me te whakarite i te toitūtanga o te hangatanga.

Ngā mea angitu o te tau 2024/25 He maha atu anō ngā āhuatanga hoahoa Māori i ngā teihana hou i whakaaturia i te tau pūtea 2024/25.

E whakaata ana ngā hoahoa i te horopaki ahurea me te tuku iho o te takiwā – e tino ahurei ai te CRL ki Tāmaki Makaurau.

Ka mihia koe e ngā toi Māori i te kuhunga ki Beresford Square

I te marama o Noema 2024, nā Ngāti Whātua Ōrākei, he mema nō te Rūnanga, i whakahaere i ngā karakia me ngā tikanga i ngā ana e rua i mua o te whakahikotanga.

Ka whakatangihia te Pūkaea i roto i ngā mahi ōkawa

I whiwhi a CRL i te Whakatauranga IS 'mātāmua' – te whakatauranga teitei rawa – mō te kaupapa. Nā ngā tautoko a te IS, i whakahoutia ngā paearu i te taha o te Rūnanga hei whakaata i te tikanga ahurea o Aotearoa.

Ka whakanuia ngā mahi toitūtanga a CRL City Rail Link Ltd Annual Report 2025

41

CRL Ltd as a good employer CRL Ltd hei Kaituku Mahi Pai CRL Ltd is made up of talented specialists who work together to ensure the Project is delivered in a timely manner, within budget, and in full alignment with all Sponsors' requirements.

During this financial year CRL Ltd’s head office moved to a space inside the Link Alliance head office. With approximately half of CRL Ltd’s employees seconded to Link Alliance, this has provided increased opportunities for employees to remain connected, both personally and professionally.

CRL Ltd organises regular team hui where the Senior Leadership Team share key updates and celebrate colleagues who have gone above and beyond by awarding Company values certificates.

CRL Ltd’s wellbeing programme supports the development of a healthy working environment.

Wellbeing initiatives have included flu vaccinations, skin checks and an all-staff potluck international food festival.

CRL Ltd is proud to have a close-knit team who are genuinely passionate about delivering New Zealand’s largest transport infrastructure project.

The team receive values certificates

Wellbeing initiatives included in-office flu vaccinations 42

City Rail Link Ltd Annual Report 2025

COMPANY OVERVIEW

Staff and dignitaries gather to bless the Karanga-a-Hape Station sky element City Rail Link Ltd Annual Report 2025

43

Corporate Directory Whaiaronga Rangatōpū Board

John Bridgman

Chair

Russell Black Malcolm Gibson Brian Harrison Anne Urlwin

Senior Management

Patrick Brockie

Chief Executive Officer

Madan Anand

Programme Performance & Controls Director

Wayne Cooney

One Client & Systems Director

Peter Cunningham

General Manager Project Handover

Sumi Eratne

Programme Delivery Director

Sarah Hampton

Head of People & Capability

Emma Kurtovich

General Counsel & Company Secretary

Nicola Mills

Chief Financial Officer

Russell McMullan

General Manager Assurance & Integration

Sandip Ranchhod

General Manager Commercial

Victoria Thackwray

General Manager Corporate Relations & Communications

Bankers

Bank of New Zealand Queen Street Auckland ANZ Bank New Zealand Limited Albert Street Auckland

Auditor

Audit New Zealand on behalf of the Auditor-General

Registered Office

Level 3, 12 Morgan Street, Newmarket, Auckland, 1023

Solicitors

Chapman Tripp

44

City Rail Link Ltd Annual Report 2025

FINANCIAL REPORT

Statement of Responsibility Tauākī Kawenga We are responsible for the preparation of City Rail Link Limited (the Company’s) financial statements and statement of performance, and for the judgements made in them.

We are responsible for any end of year performance information provided by the Company under section 19A of the Public Finance Act 1989.

We have the responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

In our opinion, these financial statements and statement of performance fairly reflect the financial position and operations of the Company for the year ended 30 June 2025.

Signed on behalf of the Board

John Bridgman Chair

Anne Urlwin Director

29 August 2025

29 August 2025

City Rail Link Ltd Annual Report 2025

45

Statement of Financial Performance for the year ended 30 June 2025

Actual 2025 $(000)

Actual 2024 $(000)

160

1,144

Interest revenue

4,186

6,162

Total revenue

4,346

7,306

3,191

3,031

Professional services

685

835

IT expenses

128

218

1.8

26,114

28,214

2

764

-

General expenses

2,361

7,576

Insurance expenses

7,051

7,950

Lease payments

329

1,569

2, 3

3

87

4

120,120

-

Total expenditure

160,746

49,480

Deficit for the year

(156,400)

(42,174)

-

-

(156,400)

(42,174)

Note Revenue Rental and other revenue

Expenses Employment expenses

Third party works Loss on demolition of asset

Depreciation and amortisation expenses Vested asset expense

12 (ii)

Other comprehensive revenue and expense Total comprehensive revenue and expense for the year

This statement is to be read in conjunction with the notes to the financial statements.

Refer to note 16 for comparatives to budget.

46

City Rail Link Ltd Annual Report 2025

FINANCIAL REPORT

Statement of Financial Position as at 30 June 2025

Note

Actual 2025 $(000)

Actual 2024 $(000)

Cash and cash equivalents

5

28,537

39,613

Trade and other receivables

6

6,345

9,687

FX derivative asset

10

-

(18)

Prepayments

6

3,892

3,589

Assets held for distribution

4

18,210

-

56,984

52,871

Assets

Total current assets Capital work in progress

4

3,659,710

3,388,401

Prepayments

6

6,602

7,871

Subterranean land

2

21,096

19,661

Property, plant and equipment

2

116,691

117,326

Total non-current assets

3,804,099

3,533,259

Total assets

3,861,083

3,586,130

Liabilities Accounts payable and accruals

7

49,622

56,624

Employee entitlements

8

1,278

941

FX derivative liability

10

-

(18)

Total current liabilities

50,900

57,547

Total liabilities

50,900

57,547

3,810,183

3,528,583

4,912,280

4,474,280

Retained earnings

(1,102,097)

(945,697)

Total equity

3,810,183

3,528,583

Net assets Equity Contributed capital

17

This statement is to be read in conjunction with the notes to the financial statements.

Refer to note 16 for comparatives to budget.

City Rail Link Ltd Annual Report 2025

47

Statement of Changes in Equity for the year ended 30 June 2025

Contributed capital

Retained earnings

Total

$(000) Note 17

$(000)

$(000)

4,474,280

(945,697)

3,528,583

-

(156,400)

(156,400)

Issue of B class shares

438,000

-

438,000

Balance at 30 June 2025

4,912,280

(1,102,097)

3,810,183

Balance at 30 June 2023

3,823,280

(903,523)

2,919,757

-

(42,174)

(42,174)

Issue of B class shares

651,000

-

651,000

Balance at 30 June 2024

4,474,280

(945,697)

3,528,583

Balance at 30 June 2024 Total comprehensive revenue and expense for the year Owner transactions

Total comprehensive revenue and expense for the year Owner transactions

This statement is to be read in conjunction with the notes to the financial statements.

48

City Rail Link Ltd Annual Report 2025

FINANCIAL REPORT

Statement of Cash Flows for the year ended 30 June 2025

Actual 2025 $(000)

Actual 2024 $(000)

160

1,144

Interest received

4,183

5,987

Employee costs

(11,480)

(12,697)

(298)

(320)

(30,993)

(42,614)

4,505

3,481

(33,923)

(45,019)

(413,658)

(636,633)

(1,495)

(2,723)

(415,153)

(639,356)

438,000

651,000

Net cash from financing activities

438,000

651,000

Net (decrease)/increase

(11,076)

(33,375)

Opening cash and cash equivalents

39,613

72,988

Closing cash

28,537

39,613

28,537

39,613

28,537

39,613

Note Cash flows to operating activities Cash received from customers

KiwiSaver contributions Suppliers (including third party works) Other receipts Net cash to operating activities Cash flows to investing activities Acquisition of capital work in progress Acquisition of property, plant and equipment Net cash to investing activities Cash flows from financing activities Proceeds from issue of contributed capital

17

Made up of Bank balances Total cash

5

This statement is to be read in conjunction with the notes to the financial statements.

Refer to note 16 for comparatives to budget.

City Rail Link Ltd Annual Report 2025

49

Notes to the Financial Statements Ngā Tuhipoka ki Ngā Tauākī Pūtea 1. Statement of accounting policies 1.1 Reporting entity City Rail Link Limited (the ‘Company’ or 'CRL Ltd') is a Crown Entity, registered under schedule 4A of the Public Finance Act and is domiciled in New Zealand.

The Company was incorporated on 13 April 2017.

The Company is owned by the Crown (51 per cent shareholder through the Minister of Transport and Minister of Finance) and Auckland Council (49 per cent).

The Company’s purpose is to govern and manage the delivery of the City Rail Link project. CRL Ltd commenced operations with effect from 1 July 2017. CRL Ltd will exist for as long as is required for the City Rail Link project and as determined by the shareholders.

The financial statements of the Company are for the year ended 30 June 2025. These financial statements were authorised by the CRL Ltd Board on the date specified on page 45.

1.2 Basis of preparation The financial statements have been prepared on a going concern basis. The Sponsors (who are the entity's shareholders) have confirmed that CRL Ltd will continue to operate until the end of the project's defects liability period (which commences upon Practical Project Completion). Accounting policies have been applied consistently throughout the year.

The financial statements of the Company have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP) and the Companies Act 1993.

The Company is a Public Benefit Entity (PBE) for financial reporting purposes and reports under Tier 1 PBE standards.

The financial statements are presented in New Zealand Dollars ($000), which is the Company’s functional currency, and have been prepared on an accrual and historical cost basis.

1.3 New and amended standards and interpretations There were no new applicable standards or interpretations that required adoption this financial year.

50

Standards issued, not yet effective and not early adopted Standards and amendments issued but not yet effective, that have not been early adopted and that are relevant to the Company are:

2024 Omnibus Amendments to PBE Standards (amendments to PBE IPSAS 1) This amendment clarifies the principles for classifying a liability as current or non current. The amendment is effective for the year ended 30 June 2027 with early adoption permitted. These amendments are not expected to have a significant impact.

PBE Conceptual Framework Update PBE Conceptual Framework Update amends Chapter 3 "Qualitative Characteristics" and Chapter 5 "Elements in General Purpose Financial Reports" of the Public Benefit Entities’ Conceptual Framework. The amendments are effective for the year ended 30 June 2029 with early adoption permitted. These amendments are not expected to have a significant impact.

PBE IFRS 17 Insurance Contracts This standard establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts and will replace PBE IFRS 4. This standard is effective for the year ended 30 June 2027. The Company has not yet assessed in detail the impact of this standard.

1.4 Cash and cash equivalents Cash comprises cash at bank and short-term deposits with a maturity of three months or less.

1.5 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Acting on behalf of Link Alliance Other Alliance Participants (OAPs) (for the C3/5/7 works per the Project Alliance Agreement and the Project Alliance Agreement Variation), CRL Ltd has entered into foreign exchange forward contracts to hedge payment obligations for the import of key plant and services (foreign currency exposures are predominately in EUR and AUD). CRL Ltd is not taking direct foreign exchange exposure but

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

is acting as an intermediary between Link Alliance and the bank or the Treasury's Debt Management Office in order to facilitate hedging of these exposures. CRL Ltd recognises the foreign exchange forward transactions at fair value on the day they are entered into with the bank with an equivalent contra transaction recognised with Link Alliance at the same time. CRL Ltd is invoiced by Link Alliance in foreign currency for all settlements in order to fully clear the foreign currency on settlement. Link Alliance is CRL Ltd’s counterparty in these transactions and remains CRL Ltd’s counterparty for the C3/5/7 works. Overseas payment obligations incurred by Link Alliance for the C3/5/7 works are required to be fully settled by CRL Ltd and hence there is no additional credit exposure for CRL Ltd. CRL Ltd does not enter into derivatives for trading or speculative purposes. The derivatives are presented as current assets and liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period. CRL Ltd ceased the facilitation of foreign exchange hedging during the year ended 30 June 2025 due to the advanced stage of the project's construction.

Derivative financial instrument liabilities are initially recognised at fair value and remeasured to fair value at each reporting date with the resulting gain or loss recognised in surplus or deficit. CRL Ltd's derivative financial instrument assets are equivalent (equal and opposite) to CRL Ltd's derivative financial instrument liabilities.

Financial assets

1.7 Assets held for distribution to owners

Financial assets are initially recognised at fair value.

1.6 Capital work in progress (WIP) CRL Ltd capitalises those costs directly attributable to the construction of the project. These are captured under Capital Work in Progress in Note 4.

CRL Ltd also capitalises a portion of corporate costs that are deemed to be required to support the construction, testing and commissioning of the actual physical works.

This allocation of cost is reviewed regularly to ensure the method adopted remains appropriate for the stage of the project. When separable assets within the project are completed there is an agreed handover procedure to the recipient of the asset. The asset is then removed from CRL Ltd's WIP and vested to the new owner. The asset is not depreciated or amortised while classified as WIP.

Derivative financial instrument assets are initially recognised at fair value on the day they are entered into. Subsequent to initial recognition, derivatives are remeasured to fair value with the resulting gain or loss recognised in surplus or deficit.

An asset is classified as held for distribution if the asset is available for distribution in its present condition, the CRL Ltd Board has approved the asset for handover and handover is highly likely to be completed within one year of classification as held for distribution. The asset is measured at the lower of its carrying amount and fair value less costs to distribute. An asset is not depreciated or amortised while classified as held for distribution.

Assets may be distributed by vesting the asset or as a capital distribution depending on the form of the transfer.

Financial liabilities

1.8 Third party works

Financial liabilities are classified as payables. The Company's financial liabilities include trade and other payables.

CRL Ltd funds work undertaken by KiwiRail Holdings Limited on the KiwiRail Holdings Limited network.

As part of the overall project, CRL Ltd undertakes or funds construction work, such as that at Newmarket, Henderson and Britomart East across the wider Auckland rail network. This enables the network to manage the larger volumes of rail passengers.

Trade and other receivables are usually received within 30 days of recognition. CRL Ltd actively manages unpaid debtors beyond 30 days. After initial measurement, such financial assets are subsequently measured at the amount due less an allowance for credit losses.

Trade and other payables are unsecured and are usually paid within 30 days of recognition. Due to their shortterm nature they are not discounted. A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

City Rail Link Ltd Annual Report 2025

The nature of the work completed (mostly in the existing rail corridor) and the ownership of the assets constructed, means that they do not form part of CRL Ltd's assets, in accordance with NZ GAAP. Costs related to third party works are expensed as incurred.

51

1.9 Third party funding

and equipment are as follows:

CRL Ltd receives additional funding from third parties (including the Sponsors and related parties) for agreed specific works (construction and non-construction) that are in addition to the project scope. The third party funding is used to reimburse CRL Ltd for the works, so that CRL Ltd is kept financially neutral. In facilitating these works, CRL Ltd effectively acts as an agent. Third party funding received is offset against the related expense incurred. The Targeted Hardship Fund is treated as third party funding.

Subterranean land

Not depreciated

Land and buildings

Not depreciated

Temporary buildings

4 years

Furniture and fittings

5 years

Office equipment

5 years

1.10 General expenses

An item of property, plant and equipment is derecognised upon vesting, disposal, demolition or when no further future economic benefits or service potential are expected from its use or disposal.

General expenses include costs such as operating leases, property rates, directors fees, telecommunications and other office operating costs.

1.11 Property, plant and equipment Property, plant and equipment consist of land, buildings, subterranean land, furniture and fittings and office equipment (including computer hardware).

Recognition and measurement Property, plant and equipment is measured initially at cost. Cost includes expenditure that is directly attributable to the acquisition of the items. The cost of an item of property, plant and equipment is recognised only when it is probable that future economic benefit or service potential associated with the item will flow to the Company, and the item’s cost can be measured reliably.

The majority of capital expenditure will remain as 'capital work in progress' for the duration of the project.

Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the entity.

Repairs and maintenance costs are recognised as expenditure as incurred.

Depreciation Land, buildings and subterranean land held for the development of rail tunnels and stations are not depreciated. All other property, plant and equipment assets are depreciated on a straight-line basis over the useful life of the asset. Depreciation is charged at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life.

The estimated useful lives of buildings, property, plant

52

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year end.

Derecognition

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in surplus or deficit.

Impairment of non-cash generating assets For non-financial, non-cash-generating assets, CRL Ltd assesses at each reporting date whether there is an indication that a non-cash-generating asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, CRL Ltd estimates the asset’s recoverable service amount. An asset’s recoverable service amount is the higher of the non-cash-generating asset’s fair value less costs to sell and its value in use.

Where the carrying amount of an asset exceeds its recoverable service amount, the asset is considered impaired and is written down to its recoverable service amount.

In assessing value in use, CRL Ltd has adopted the depreciated replacement cost approach. Under this approach, the present value of the remaining service potential of an asset is determined as the depreciated replacement cost of the asset. The depreciated replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset.

In determining fair value less costs to sell, the price of the asset in a binding agreement in an arm's length transaction, adjusted for incremental costs that would be directly attributed to the disposal of the asset, is used. If there is no binding agreement, but the asset is traded on an active market, fair value less cost to sell is the asset's

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

market price less cost of disposal. If there is no binding sale agreement or active market for an asset, CRL Ltd determines fair value less cost to sell based on the best available information.

Impairment losses are recognised immediately in surplus or deficit.

For each asset, an assessment is made at each reporting date as to whether there is any indication of impairment, or that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, CRL Ltd estimates the asset's recoverable service amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised.

The reversal is limited so that the carrying amount of the asset does not exceed its recoverable service amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such a reversal is recognised in surplus or deficit.

1.12 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The Company has no internally generated intangible assets.

The useful lives of intangible assets are assessed as finite.

Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible assets may be impaired.

The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits or service potential embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

The amortisation expense on intangible assets with finite lives is recognised in surplus or deficit. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in surplus or deficit when the asset is derecognised.

City Rail Link Ltd Annual Report 2025

Software The Company holds several computer software packages for internal use, including purchased software. Purchased software is recognised and measured at the cost incurred to acquire the software.

A summary of the policies applied to the Company’s intangible assets is as follows: Intangible asset Software

Useful life 5 years

Amortisation method Straight-line basis

1.13 Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date. The substance of the arrangement depends on whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.

Company as a lessee Operating leases are leases that do not transfer substantially all the risks and benefits incidental to ownership of the leased items to the Company.

Operating lease payments are recognised as an operating expense in surplus or deficit on a straight-line basis over the lease term.

Company as a lessor Rent received from an operating lease is recognised as income on a straight-line basis over the lease term.

1.14 Employee benefits Liabilities for wages and salaries (including non-monetary benefits) and annual leave are recognised in surplus or deficit during the periods in which the employees rendered the related services, and are generally expected to be settled within 12 months of the reporting date. The liabilities for these short-term benefits are measured at the amounts expected to be paid when the liabilities are settled. Expenses for sick leave are recognised when the leave is taken and are measured at the rates paid.

1.15 Equity Equity is made up of accumulated comprehensive revenue and expense, and contributed capital.

Accumulated comprehensive revenue and expense is the Company’s accumulated surplus or deficit since the formation of the Company.

Contributed capital represents the transfer of project costs based on a Settlement Agreement between the 53

Crown and Auckland Council as well as shares issued to the shareholders, the Crown and the Auckland Council for funding of the project. 1,000 Ordinary shares were issued for the contributed capital with B Class shares being issued for funding. Each funding share represents one New Zealand dollar on date of issuance.

The value of each Ordinary and B Class share will fluctuate subject to the deficit.

1.16 Revenue Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Company and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received. The following specific recognition criteria must be met before revenue is recognised.

Rental revenue Rental revenue arising from operating leases on acquired properties (required for the project works) is accounted for on a straight-line basis over the lease term and is included in revenue in the statement of financial performance due to its operating nature.

Outstanding customer receivables are monitored monthly and balances >30 days are followed up for recovery. As at 30 June 2025, there were no property debtors with outstanding balances >30 days (2024: Nil).

No provision for credit losses or allowances have been accounted for as a result.

Interest revenue Interest is received on the cash held at bank and shortterm deposits maturing within less than three months.

Interest income is included in revenue in the statement of financial performance.

1.17 Tax CRL Ltd is a Public Entity in accordance with the Income Tax Act 2007 and consequently is exempt from the payment of income tax.

Accordingly, no provision has been made for income tax.

Items in the financial statements are presented exclusive of GST, except for receivables and payables which are presented on a GST inclusive basis.

Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense. The net amount of GST recoverable from the IRD is included as part of receivables in the statement of financial position.

54

The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as a net operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

1.18 Significant accounting judgements, estimates and assumptions The preparation of the Company’s financial statements requires judgements, estimates and assumptions to be made that affect the reported amounts of revenue, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities.

Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amounts of assets or liabilities affected in future periods. (i) Judgements In the process of applying the Company’s accounting policies, the following judgements have been made, which have the most significant effect on the amounts recognised in the financial statements.

Classification of assets held for distribution Construction, testing and commissioning of the City Rail Link is well-advanced, and the project is expected to reach practical completion in the coming year. At 30 June 2025, CRL Ltd has made judgements regarding whether assets are available for immediate distribution in their present condition at year end and whether the distribution is highly probable in the next financial year. Most assets are not available for immediate distribution at year end as construction work is in progress. Certain assets have not yet attained practical completion but are partially in use. Judgment was applied in considering the probability of the distribution, considering factors including whether the asset is open to the public, the nature and extent of any snags and defects to be remedied, status of regulatory compliance and status of asset documentation required for counterparty acceptance. These assets are included within capital work in progress, property plant and equipment and subterranean land. Where it was concluded that the assets are available for immediate distribution in their present condition at year end and the distribution is highly probable in the next financial year, the asset has been classified as held for distribution. The

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

impact of the judgement does not affect the value of any assets, rather their disclosure as current or noncurrent. Refer to notes 2 and 4. (ii) Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared.

Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company.

Such changes are reflected in the assumptions when they occur.

Project Alliance Agreement limb 2 and 3 payments The arrangement with the Link Alliance is an alliance form of contracting. Additional information is set out in note 4 Capital work in progress.

The Project Alliance Agreement Second Variation Agreement between CRL Ltd and Link Alliance signed September 2023 set out a new payment mechanism for future Limb 2 (corporate profit and overhead including painshare/gainshare) and Limb 3 (Key Result Area (KRA) payments). Limb 2 is 100 per cent at risk under the Limb 3 risk/reward mechanism. The Project Alliance Board (PAB) agreed that no further payments for Limb 2 and Limb 3 are to be made at this time.

While the KRA risk and reward framework continues to apply, the risk and reward payments under that framework will be considered as part of the total Limb 2 and Limb 3 payments due at Practical Completion, and as such, are contingent on the final financial outcome of the contract. Estimating the final financial outcome of the contract requires a significant number of underlying assumptions, including views on the likelihood of any risks eventuating and their possible financial implications. At this stage of the project, the final financial outcome is too uncertain and therefore disclosure has been made as a contingency - refer to note 9 Commitments, provisions and contingencies.

support small businesses experiencing genuine financial hardship from major and sustained CRL construction disruption surrounding the Te Waihorotiu Station (Aotea), Karanga-a-Hape Station (Karangahape), and Maungawhau Station (Mt Eden) sites (within the C3 Affected Area).

The THF is governed by high-level guidelines, which are set by the Sponsors and establish fixed considerations with regards to the dates for eligibility and what the THF is to cover. In the year ended 30 June 2025, payments made under the THF totalled $1.4m (2024:$2.2m) excluding administration and management fees of $0.2m (2024: $0.2m). Sponsors reimburse CRL Ltd for THF payments made on an “actual costs incurred” basis.

1.20 Vested asset expense As CRL Ltd completes certain contracts or separable portions it may transfer these assets from CRL to the Sponsors or their nominees. However, the ownership of the majority of CRL Ltd's key assets will stay with CRL Ltd until the completion of the project. Any separable assets transferred prior to project completion will transfer without compensation and hence will be treated as a vested asset expense. CRL Ltd will recognise a vested asset expense on transfer of the asset.

1.19 Targeted Hardship Fund In September 2021, project Sponsors, Auckland Council and the NZ Government announced the creation of a $12 million ex gratia Targeted Hardship Fund (THF) to

City Rail Link Ltd Annual Report 2025

55

2. Property, plant and equipment 2025

Subterranean land

Land and buildings

Office equipment

Total

Cost

$(000)

$(000)

$(000)

$(000)

$(000)

$(000)

Balance at 1 July 2024

19,661

117,321

-

166

548

137,696

71

-

-

-

-

71

1,364

117

-

-

15

1,496

Disposals and demolitions

-

(764)

-

(128)

(430)

(1,322)

Balance at 30 June 2025

21,096

116,674

-

38

133

137,941

Balance at 1 July 2024

-

-

-

166

543

709

Depreciation for the year

-

-

-

-

3

3

Disposals and demolitions

-

-

-

(128)

(430)

(558)

Balance at 30 June 2025

-

-

-

38

116

154

21,096

116,674

-

-

17

137,787

2024

Subterranean land

Land and buildings

Temporary Furniture buildings and fittings

Office equipment

Total

Cost

$(000)

$(000)

$(000)

$(000)

$(000)

$(000)

Balance at 1 July 2023

17,100

117,182

15,617

166

540

150,605

75

139

-

-

-

214

2,486

-

-

-

22

2,508

Disposals and demolitions

-

-

(15,617)

-

(14)

(15,631)

Balance at 30 June 2024

19,661

117,321

-

166

548

137,696

Balance at 1 July 2023

-

-

15,617

166

470

16,253

Depreciation for the year

-

-

-

-

87

87

Disposals and demolitions

-

-

(15,617)

-

(14)

(15,631)

Balance at 30 June 2024

-

-

-

166

543

709

19,661

117,321

-

-

5

136,987

Transferred/reclassified assets Additions

Temporary Furniture buildings and fittings

Depreciation

Net book value at 30 June 2025

Transferred/reclassified assets Additions

Depreciation

Net book value at 30 June 2024

There are no items of property, plant and equipment where title has been restricted or that have been used for security against liabilities.

56

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

3. Intangibles Software Cost

2025 $(000)

2024 $(000)

832

832

Additions

-

-

Disposals

(832)

-

-

832

832

832

-

-

(832)

-

Balance at 30 June

-

832

Net book value at 30 June

-

-

Balance at 1 July

Balance at 30 June Amortisation Balance at 1 July Amortisation for the year Disposals

There are no intangible assets where title is restricted or pledged as security for liabilities.

4. Capital work in progress Capital work in progress is measured at cost less accumulated impairment losses.

2025 $(000)

2024 $(000)

Balance at 1 July

3,388,401

2,752,369

Vested assets expense

(120,120)

-

Transfers to PPE

(1,526)

(2,700)

Reclassification to assets held for distribution

(18,210)

-

Additions

411,165

638,732

3,659,710

3,388,401

Balance at 30 June

Capital work in progress costs include payments to contractors for the actual construction works, resource consents, compliance requirements and costs incurred in the design, procurement and supervision of the works. CRL Ltd also capitalises a portion of the overhead costs that it deems is required to support the construction of the actual physical works. Examples of these overhead costs include CRL Ltd staff costs and operating costs such as rent and utilities.

For 2025 the total value of overhead costs capitalised is $10.9m (2024: $12.9m).

CRL Ltd reviews its capital work in progress bi-annually to identify any impairment of the carrying value of its assets.

Project Alliance Agreement Payment Structure The Project Alliance Agreement (PAA) signed with the Link Alliance is an alliance form of contracting. Alliancing is a co-operative form of contracting where the participants enter a relationship (alliance) which is designed to align the commercial interests of the participants. In an alliance contract both parties, the contractor and the client (owner), accept a collective responsibility for risk, performance, and outcome (painshare/gainshare). The contractor receives payment for 100 per cent of the costs related to the direct works including project-specific overhead (referred to as “Limb 1”). Payments made to the contractor for corporate overheads and profit on the contract is referred to as "Limb 2". "Limb 3" payments relate to painshare/gainshare depending on actual cost outcomes compared to the pre-agreed target costs. Limb 2 is 100 per cent at risk under the Limb 3 risk/reward mechanism.

City Rail Link Ltd Annual Report 2025

57

Vested assets expense Vested assets refer to those assets transferred to the Sponsors or their nominees on contract completion (see note 1.20 Vested Asset Expense). Refer to related parties note 12(iii) for assets vested during the year.

Assets held for distribution C9 Britomart East Stages 4 to 6 (track and other works) totalling $18.2m (2024: nil) has been identified as assets held for distribution at year end. The assets are expected to be vested to KiwiRail Holdings Limited and Auckland Transport within the financial year ending 30 June 2026.

5. Cash and cash equivalents Cash comprises of cash at bank and short-term deposits with a maturity of three months or less.

2025 $(000)

2024 $(000)

Cash at bank

20,537

19,613

Short-term deposits

8,000

20,000

Total

28,537

39,613

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company and earn interest at the respective short-term call and deposit rates. Deposits are placed with Bank of New Zealand and/or ANZ Bank New Zealand Limited. Both banks have AA- long-term credit ratings from Standard & Poor's rating agency.

While cash and cash equivalents at 30 June 2025 are subject to the expected credit loss requirements of PBE IPSAS 41, no loss allowance has been recognised because the estimated loss allowance for credit losses is trivial.

Reconciliation of operating deficit with net cash from operating activities 2025 $(000)

2024 $(000)

(156,400)

(42,174)

Depreciation and amortisation

3

87

Provisions/accruals

-

3,824

Accrued income

-

(175)

764

-

Capitalised employment expenses

(10,849)

(12,881)

Vested asset expense

120,120

-

Decrease/(increase) in accounts receivable, prepayments and other assets

5,468

7,653

Increase/(decrease) in accounts payable, accruals and other liabilities

6,971

(1,353)

(33,923)

(45,019)

Surplus/(deficit) for the year Adjustments for:

Loss on demolition of asset

Working capital movements:

Net cash from operating activities

58

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

6. Trade and other receivables and prepayments Short-term receivables are recorded at the amount due, less an allowance for credit losses. CRL Ltd applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables.

In measuring expected credit losses, short-term receivables have been assessed on a collective basis as they possess shared credit risk characteristics. These have been grouped based on the days past due.

Short-term receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the debtor being in liquidation.

2025 $(000)

2024 $(000)

1,948

936

577

430

2,525

1,366

4

174

GST receivable

3,816

8,147

Total

6,345

9,687

Trade and other receivables

Note

Trade receivables Related party receivables

12

Total trade receivables Sundry receivables

As at 30 June, the aging analysis of trade receivables and related party receivables was: $(000) 0 - 30 days

$(000) 30 - 60 days

$(000) 60 - 90 days

$(000) >90 days

Trade receivables 30 June 2025

2,525

-

-

-

Trade receivables 30 June 2024

1,366

-

-

-

There have been no changes in the estimation techniques or significant assumptions used in measuring the loss allowance during the reporting period. Related party receivables relate to reimbursable expenses as agreed by contract with Auckland Council and the Crown as per normal arm's length transactions.

CRL Ltd has a number of receivables from government entities. We assess no credit risk (and therefore no credit loss allowance is made) with these counterparties and related receivables.

There are trade receivables from non-government entities and we assess these for credit risk. We consider the financial standing of that counterparty including if credit ratings and/or financial information is available and acceptable. As of 30 June 2025 there are minimal receivables from non-government companies and based on our review we have not made an allowance for credit losses.

Prepayments

2025 $(000)

2024 $(000)

Prepayments (current)

3,892

3,589

Prepayments (non-current)

6,602

7,871

Total

10,494

11,460

Prepayments relate to insurance premiums paid in advance for the works undertaken by Link Alliance over the estimated life of the works (including liability periods) and are recognised as both current and non-current assets. The insurance provides for contract works, public liability and professional indemnity insurance.

City Rail Link Ltd Annual Report 2025

59

7. Accounts payable and accruals Accounts payable and accruals represent liabilities of goods and services provided to the entity that have not been paid at the end of the financial year.

Accounts payable and accruals are measured at amortised cost.

Note Trade payables Related parties payables

2025 $(000)

2024 $(000)

478

-

-

5

49,144

56,619

49,622

56,624

12

Sundry payables and accruals

Terms and conditions of the above financial liabilities: • Trade payables are non-interest bearing and are normally settled fortnightly.

• Related party payables mainly relate to accruals for Land & Property Specialist Services from Auckland Council.

• Sundry payables and accruals are non-interest bearing and have an average term of less than three months.

8. Employee entitlements 2025 $(000)

2024 $(000)

Annual leave

508

711

Accrued salaries and wages

770

230

1,278

941

9. Commitments, provisions and contingencies Operating lease commitments - Company as a lessee The Company has entered into commercial leases. There are no restrictions placed upon the Company by entering into these leases.

Future minimum rentals payable under non-cancellable operating leases as at 30 June are, as follows: 2025 $(000)

2024 $(000)

Less than one year

1,201

3,253

One to five years

-

317

More than five years

-

-

1,201

3,570

60

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

Operating lease commitments - Company as a lessor The Company has entered into commercial and rental property leases on its property portfolio consisting of the Company's buildings.

These non-cancellable leases have remaining terms of less than one year. Each lease includes a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

Future minimum rentals receivable under non-cancellable operating leases as at 30 June are as follows: 2025 $(000)

2024 $(000)

Less than one year

29

102

One to five years

-

-

More than five years

-

-

29

102

Capital commitments At 30 June 2025, the Company had capital commitments of $274.0m (2024: $599.9m) relating to the project's capital work in progress.

Contingencies As of 30 June 2025, CRL Ltd is a party to various claims and disputes (including claims for compensation in relation to land acquisition that have been served but not yet filed in the Land Valuation Tribunal). Where it has been assessed that the likelihood of having to make a payment meets the recognition criteria for a provision, this has been included in the financial statements. For the year ended 30 June 2025, no provisions have been recognised (2024: nil).

CRL Ltd continues to assess, including with reference to the factors set out in the High Court judgment(s) (Samson and YMCA), the compensation payable to those landowners who have yet to settle their claims and CRL Ltd is actively engaged with landowners to resolve outstanding claims. However, given that each property must be considered on its own merits with reference to the specific factors affecting that property, it is not possible to reliably estimate the obligations of CRL Ltd or accurately predict whether any compensation offer will be acceptable to the landowner – each property owner being entitled to have compensation determined by the Land Valuation Tribunal.

Legal Claims As at 30 June 2025, there is one legal claim before the Land Valuation Tribunal or Court where CRL Ltd is involved either directly or indirectly as a party. specifically: * ENV-2025-AKL-000128 - Parly Assets Limited v Auckland Council. A claim for compensation under section 60 of the Public Works Act 1981 for the subterranean land acquired for the construction of the CRL tunnel, an associated restrictive covenant, and for injurious affection.

Key Result Area (KRA) - Link Alliance PAA The Project Alliance Agreement between CRL Ltd and Link Alliance Second Variation Agreement signed September 2023 set out a new payment mechanism for future Limb 2 (corporate profit and overhead including painshare/ gainshare) and Limb 3 (Key Result Area (KRA) payments). The Project Alliance Board (PAB) agreed that no further payments for Limb 2 and Limb 3 are to be made at this time. While the KRA risk and reward framework continues to apply, the risk and reward payments under that framework will be considered as part of the total Limb 2 and Limb 3 payments due at Practical Completion, and as such, are contingent on the final financial outcome of the contract.

City Rail Link Ltd Annual Report 2025

61

10. Financial assets and liabilities and financial risk management The table below summarises the maturity profile of the Company's financial liabilities which show the timing of the cash outflows and the maturity profiles of financial assets held by the Company which are readily saleable or expected to generate cash inflows to meet the cash outflows of the financial liabilities. The amounts disclosed are undiscounted contractual cashflow.

2025 $(000)

2024 $(000)

Cash

28,537

39,613

Receivables

2,529

1,540

31,066

41,153

49,622

56,624

49,622

56,624

Six to twelve months

Total contractual cashflows

Financial assets (at amortised cost)

Financial liabilities (at amortised cost) Financial liabilities

Carrying amount

On demand

Less than six months

Non derivative financial assets

$(000)

$(000)

$(000)

$(000)

$(000)

Cash

28,537

20,537

8,000

-

28,537

Receivables

2,529

2,525

4

-

2,529

Total non derivative financial assets

31,066

23,062

8,004

-

31,066

Financial liabilities at amortised cost

49,622

478

49,144

-

49,622

Total non derivative financial liabilities

49,622

478

49,144

-

49,622

Net contractual cashflows

(18,557)

22,584

(41,141)

-

(18,557)

2024

Carrying amount

On demand

Less than six months

Six to twelve months

Total contractual cashflows

Non derivative financial assets

$(000)

$(000)

$(000)

$(000)

$(000)

Cash

39,613

19,613

20,000

-

39,613

Receivables

1,540

1,366

174

-

1,540

Total non derivative financial assets

41,153

20,979

20,174

-

41,153

Financial liabilities at amortised cost

56,624

5

56,619

-

56,624

Total non derivative financial liabilities

56,624

5

56,619

-

56,624

Net contractual cashflows

(15,471)

20,974

(36,445)

-

(15,471)

2025

Non derivative financial liabilities

Non derivative financial liabilities

62

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS The Company’s risk management policies identify and analyse the risks faced by the Company and set appropriate risk levels and controls to monitor those risks. (i) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. With procurement largely complete, CRL Ltd has a relatively small exposure to currency risk as of 30 June 2025 and no interest rate exposure, as CRL Ltd is not permitted to borrow. (ii) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party, by failing to discharge an obligation.

The Company is mainly exposed to credit risk from its financial assets, and the maximum exposure to credit risk at balance date is represented by the total amount of financial assets in the statement of financial position: • Cash and cash equivalents • Trade receivables (also see Note 6) The Company manages credit risk by analysing the credit worthiness of its customers, including external ratings if available. Deposits are placed with Bank of New Zealand and/or ANZ Bank New Zealand Limited, both with longterm AA- credit ratings by Standard & Poor's rating agency. (iii) Liquidity risk Liquidity risk is the risk that the Company will have difficulty meeting the obligations associated with its financial liabilities. CRL Ltd’s approach to managing liquidity is to ensure that it has sufficient cash reserves to meet its liabilities when they fall due. Funding from the CRL Ltd Sponsors will be made available upon request up to the Target Delivery Amount per the Project Delivery Agreement (PDA), adjusted for future property sales proceeds. There is a prescribed funding request process in the PDA. This arrangement means the Company has no significant exposure to liquidity risk. The Company does not expect liquidity risk in regard to foreign exchange transactions as these are funding obligations the Company incurs and forecasts for as part of meeting expected project costs.

Contractual maturity analysis of derivative financial liabilities The table below analyses derivative financial instrument liabilities that are all gross settled derivatives into their relevant maturity groupings based on the remaining period at balance date to the contractual maturity date. The amounts disclosed are the undiscounted contractual cash flows.

Liability carrying amount

Asset carrying amount

Contractual cash flows

Less than six months

Six to twelve months

One to Two years

$(000)

$(000)

$(000)

$(000)

$(000)

$(000)

Outflow

-

-

-

-

-

-

Inflow

-

-

-

-

-

-

-

-

-

-

-

-

Liability carrying amount

Asset carrying amount

Contractual cash flows

Less than six months

Six to twelve months

One to two years

$(000)

$(000)

$(000)

$(000)

$(000)

$(000)

Outflow

(18)

-

-

(18)

-

-

Inflow

-

18

-

18

-

-

(18)

18

-

-

-

-

2025 Forward foreign exchange costs

2024 Forward foreign exchange costs

City Rail Link Ltd Annual Report 2025

63

The notional principal amounts of outstanding forward foreign exchange contracts as of 30 June 2025 was Nil (2024: NZD 2.6m). These foreign currencies include Euro (EUR). There were no foreign currency principal amounts outstanding at 30 June 2025 (2024: EUR 1.5m and AUD nil). The fair values of forward foreign exchange contracts have been derived from a mark-to-market valuation provided by Bank of New Zealand of all outstanding transactions as at year end. These foreign exchange derivatives have been determined to be within Level 2 of the fair value hierarchy as all significant inputs required to ascertain their fair value are observable. (iv) Counterparty risk Counterparty risk is the likelihood or probability that one of those involved in a transaction might default on its contractual obligations. CRL Ltd has a number of key contractual counterparties. CRL Ltd receives financial information from and regularly monitors the financial creditworthiness of these counterparties to ensure there is no risk of disruption to the project and that those counterparties are able to continue to satisfy their current and future commitments under their contracts with CRL Ltd. In reviewing financial creditworthiness, CRL Ltd considers financial performance (including rating agency reports where available) of both the counterparty and, as applicable, their parent.

11. Sensitivity analysis No sensitivity analysis has been completed as there are no foreign currency exposures.

12. Related parties (i) Key management personnel Key management personnel represents the senior management team (including Chief Executive) and Directors.

Remuneration and benefits

2025 $(000)

2024 $(000)

Senior management

4,629

5,172

309

294

4,938

5,466

Directors

Key management personnel did not receive any remuneration or compensation other than in their capacity as key management personnel. If the number of personnel were reported as Full Time Equivalent (FTE) the number of senior managers would have been 9.7 FTE (2024: 10.3 FTE). There are 5 appointed directors in 2025 (2024: 5).

The Company did not provide loans or compensation to close key management personnel or their close family members. No key management personnel received compensation or other benefits in relation to cessation (2024:Nil). (ii) Employment expenses 2025 $(000)

2024 $(000)

2,649

2,565

KiwiSaver employer contributions

298

320

Other employment related costs

244

146

3,191

3,031

Salaries and wages

CRL Ltd capitalises a portion (77 per cent in 2025 and 77 per cent in 2024) of employment expenses and hence the employment expenses shown above are net of capitalisation.

64

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS Severance payments No termination benefits relating to severance amounts were paid to employees in 2025 (2024: Nil) as a result of reorganisation of the Company. There were no termination payments in 2025 (2024: $25,000).

Redundancy payments No termination benefits or redundancy amounts were paid in 2025 (2024: Nil) as a result of the reorganisation of the Company. (iii) Related party transactions and balances CRL Limited is a public benefit entity jointly owned by the Crown and Auckland Council. The following entities are considered related parties due to direct shareholding in CRL Ltd or being under control of the Crown or Auckland Council: • The Crown, represented by the Minister of Transport and the Minister of Finance, holds a 51 per cent ownership interest in CRL Limited. The Crown's interest is administered by the Ministry of Transport.

• Auckland Council holds a 49 per cent ownership interest in CRL Limited Related party transactions other than remuneration of key management personnel Related party transactions during the year are disclosed below unless: (a) they were entered into in the course of a normal client/supplier relationship under terms equivalent to those that prevail in arm's length transactions in similar circumstances, or (b) they were transactions with other public sector entities consistent with normal operating relationships between those entities and undertaken on terms and conditions that are normal for such transactions in those circumstances.

Entity

2025 $(000)

2024 $(000)

CRL Ltd received funding for Targeted Hardship Fund actual payments

825

1,212

CRL Ltd vested assets to Auckland Council (on behalf of Auckland Transport). These assets comprised of C3 Britomart station service rooms, C8 Otahuhu station upgrade, C9 Britomart East junction upgrade and C9 Strand station upgrade.

(100,755)

-

CRL Ltd received funding for Targeted Hardship Fund actual payments

825

1,212

(19,365)

-

Description

Auckland Council Group Auckland Council

Crown Ministry of Transport

CRL Ltd vested assets to KiwiRail Holdings Limited, facilitated by the Ministry of Transport. These assets comprised of C8 Otahuhu station and track upgrade, C9 Britomart East junction upgrade, C9 Strand station works and C8 Newmarket track and overhead line works.

City Rail Link Ltd Annual Report 2025

65

Related party receivable / payable balances at year end

Due from

Owed to

2025

$(000)

$(000)

Crown

309

-

Auckland Council

268

-

577

-

Crown

230

-

Auckland Council

200

5

430

5

2025

2024

$(000)

$(000)

Audit or review of the financial statement and performance reporting - current year

345

335

Audit or review of the financial statement and performance reporting - prior year

8

-

353

335

2024

13. Auditors Remuneration

The auditors remuneration includes work performed in respect of: • the year end audit, including both work on the audit of CRL Ltd's financial statements and performance information for the year end 30 June 2025 and work on the group consolidation returns to CRL Ltd's Sponsors; • review of CRL Ltd's interim financial statements; and • interim group consolidation returns to one of the Company's Sponsors (Auckland Council).

This work is performed by Audit New Zealand on behalf of the Controller and Auditor-General. There were no significant disbursements paid.

14. Capital management CRL Ltd's capital is its equity, which comprises capital and accumulated surplus/(deficit). Equity is represented by net assets.

CRL Ltd is subject to the financial management and accountability provisions of the Crown Entities Act 2004, which impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities, and the use of derivatives.

CRL Ltd manages its equity by prudently managing revenues, expenses, assets, liabilities and general financial dealings to ensure the company effectively achieves its objectives and purpose.

15. Subsequent events There are no events subsequent to year end.

66

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

16. Explanation of major variances against budget Major variations from the Company’s budget figures are explained below:

Statement of Financial Performance Budget $(000)

Actual $(000)

Variance $(000)

39

160

121

Interest revenue

4,500

4,186

(314)

Total revenue

4,539

4,346

(193)

Employment expenses

3,288

3,191

97

Professional services

1,017

685

332

413

128

285

30,200

26,114

4,086

-

764

(764)

General expenses

2,355

2,361

(6)

Insurance expenses

8,256

7,051

1,205

423

329

94

-

3

(3)

Vested asset expense

242,000

120,120

121,880

Total expenditure

287,952

160,746

127,206

Surplus/(deficit)

(283,413)

(156,400)

127,013

Total Comprehensive Revenue and Expense

(283,413)

(156,400)

127,013

2025 Revenue Rental & other revenue

Expenditure

IT expenses Third party works Loss on demolition of asset

Lease payments Depreciation and amortisation expenses

The Company’s net deficit was $127.0m lower than budgeted (2024: $136.5m lower than budgeted). The lower deficit is primarily due to asset transfers of $121.9m budgeted for in FY25, now expected to occur in FY26. Third party works are lower due to timing differences between actual and planned works.

City Rail Link Ltd Annual Report 2025

67

Statement of Financial Position

Budget $(000)

Actual $(000)

Variance $(000)

Cash and cash equivalents

20,717

28,537

7,820

Trade and other receivables

4,355

6,345

1,990

Prepayments

1,483

3,892

2,409

-

18,210

18,210

26,555

56,984

30,429

3,606,392

3,659,710

53,318

Prepayments

6,388

6,602

214

Subterranean land

17,064

21,096

4,032

Property, plant and equipment

117,196

116,691

(505)

Total Non-Current Assets

3,747,040

3,804,099

57,059

Total Assets

3,773,595

3,861,083

87,488

Accounts payable and accruals

13,528

49,622

(36,094)

Current employee entitlements

1,062

1,278

(216)

Total Current Liabilities

14,590

50,900

(36,310)

Total Liabilities

14,590

50,900

(36,310)

3,759,005

3,810,183

51,178

Contributed capital

4,990,280

4,912,280

(78,000)

Retained earnings

(1,231,275)

(1,102,097)

129,178

Total Equity

3,759,005

3,810,183

51,178

2025 Assets Current Assets

Assets held for distribution Total Current Assets Non-Current Assets Capital work in progress

Liabilities Current Liabilities

Net Assets Equity

The variances in capital work in progress result largely from transfer of assets now expected to occur in FY26, offset by lower than planned Link Alliance project spend. As a result, contributed capital was lower than budgeted. Higher than budgeted accounts payables and accruals are due to delays in C3 project works compared to plan. One asset met the criteria for assets held for distribution and has been disclosed as such at year end.

68

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

Statement of Cash Flows Budget $(000)

Actual $(000)

Variance $(000)

39

160

121

Interest received

4,500

4,183

(317)

Employee costs

(12,670)

(11,480)

1,190

(284)

(298)

(14)

(37,935)

(30,993)

6,942

3,968

4,505

537

(42,382)

(33,923)

8,459

(480,958)

(413,658)

67,300

(4,042)

(1,495)

2,547

(485,000)

(415,153)

69,847

Proceeds from issue of contributed capital

516,000

438,000

(78,000)

Net cash from financing activities

516,000

438,000

(78,000)

Net (decrease)/increase

(11,382)

(11,076)

306

Opening cash and cash equivalents

32,099

39,613

7,514

Closing cash

20,717

28,537

7,820

Bank balances

20,717

28,537

7,820

Total cash

20,717

28,537

7,820

2025 Cash flows to operating activities Cash received from customers

KiwiSaver contributions Suppliers Other receipts Net cash to operating activities Cash flows to investing activities Acquisition of capital work in progress Acquisition of property, plant and equipment Net cash to investing activities Cash flows from financing activities

Made up of:

Lower contributed capital of $78.0m versus budget resulted from lower than planned project spend in the acquisition of capital work in progress and a higher opening cash balance.

City Rail Link Ltd Annual Report 2025

69

17. Equity Equity is measured as the difference between total assets and total liabilities. Equity is classified into the following components: • Contributed capital (Ordinary shares) • Surplus/(deficit) • Funding received for B class shares

Shares Ordinary shares The initial shareholding for the creation of CRL Ltd comprised 1,000 Ordinary shares. Ordinary shares related to the initial set up of the company have voting rights attached but no par value. There have been no movements in Ordinary shares. The shareholding was split as per the table below.

B Class shares Shareholders receive one share for every dollar of funding contributed. Funding is applied for on a quarterly basis supported by future forecast cash requirements.

All B Class shares are authorised, issued and fully paid. They have no voting rights attached.

Total Auckland Total number contributed Council of shares capital $(000)

Minister of Finance

Minister of Transport

255

255

490

108,932

108,933

217,865

Shares issued 1 July 2024

1,009,637,561

1,009,637,561

2,019,275,122 4,038,550,244

4,038,550

Shares issued during the year

109,500,000

109,500,000

219,000,000

438,000,000

438,000

Total B Class shares 30 June 2025

1,119,137,561

1,119,137,561 2,238,275,122 4,476,550,244

4,476,550

2025 Ordinary shares Number of shares Total value of shares on issuance ($000)

1,000 435,730

B Class shares

Total Contributed Capital 2025

2024

4,912,280 Total Auckland Total number contributed Council of shares capital $(000)

Minister of Finance

Minister of Transport

255

255

490

108,932

108,933

217,865

Ordinary shares Number of shares Total value of shares on issuance ($000)

1,000 435,730

B Class shares Shares issued 1 July 2023

846,887,561

846,887,561 1,693,775,122 3,387,550,244

3,387,550

Shares issued during the year

162,750,000

162,750,000

651,000,000

651,000

Total B Class Shares 30 June 2024

1,009,637,561 1,009,637,561 2,019,275,122 4,038,550,244

4,038,550

Total Contributed Capital 2024

70

325,500,000

4,474,280

City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

Governance and Remuneration Disclosures Mana Whakahaere me Ngā Whakapuakanga Utu 1. Directors’ interests Directors made the following entries in the Directors’ Interests Register pursuant to section 140 of the Companies Act 1993 during the year ended 30 June 2025.

Director

Board/Committee Memberships

John Bridgman (Chair)

Ceased role as a consultant at Rau Paenga Limited and ceased directorship at Waka Kotahi New Zealand Transport Agency.

Russell Black

Directorship and shareholding in Mark Six Company Limited, Tin Hau Farm Limited and R & G Orchard Limited. Ceased role at High Capacity Metro Train PPP.

Malcolm Gibson

Ceased role at NRT Pty Ltd.

Brian Harrison

No change.

Anne Urlwin

Directorship of Precinct Properties Investments Limited. Note that this is not a new appointment, rather it is an update to reflect that Precinct Properties New Zealand Limited and Precinct Properties Investments Limited operate in a stapled structure.

This structure has been effective from 1 July 2023.

2. Directors’ remuneration (included in General expenses in the Statement of Financial Performance) 2025 $(000)

2024 $(000)

John Bridgman (Chair)

103

98

Russell Black

51

49

Malcolm Gibson

51

49

Brian Harrison

51

49

Anne Urlwin

51

49

309

294

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71

3. Directors’ meeting attendance During the year, ten Board, four Audit & Risk Committee and one People & Remuneration Committee meetings were held. Attendance by each Director was as follows:

Board meetings

Audit & Risk Committee

People & Remuneration Committee

Total meetings held

10

4

1

John Bridgman (Chair)

10

4

1

Russell Black

10

4

1

Malcolm Gibson

9

4

1

Brian Harrison

9

4

1

Anne Urlwin

10

4

1

4. Indemnities and insurance In accordance with section 162 of the Companies Act 1993 and CRL Ltd’s Constitution, CRL Ltd has provided a deed of indemnity to Directors for certain activities undertaken in the performance of CRL Ltd's functions. CRL Ltd has taken out Directors' and Officers' Liability and Professional Indemnity insurance cover during the financial year in respect of the liability or cost of Directors and employees.

5. Information used by Directors There were no notices from Directors requesting to disclose or use Company information received in their capacity as Directors that would not otherwise have been available to them.

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City Rail Link Ltd Annual Report 2025

NOTES TO FINANCIAL STATEMENTS

6. Employee remuneration bands The number of employees or former employees who received remuneration and other benefits exceeding $100,000 during the year to 30 June 2025 are specified in the following table. Remuneration includes salary, any performance incentive payments, redundancy payments, employer contributions to KiwiSaver and other sundry benefits received in their capacity as employees or former employees of the Company.

2025 2024 Number of employees Number of employees $100,000 - $109,999

2

3

$110,000 - $119,999

4

2

$120,000 - $129,999

1

1

$130,000 - $139,999

3

2

$140,000 - $149,999

4

2

$150,000 - $159,999

2

4

$160,000 - $169,999

-

1

$170,000 - $179,999

1

-

$180,000 - $189,999

2

5

$190,000 - $199,999

2

3

$200,000 - $209,999

2

1

$210,000 - $219,999

2

3

$220,000 - $229,999

3

-

$230,000 - $239,999

2

3

$240,000 - $249,999

1

2

$250,000 - $259,999

4

2

$260,000 - $269,999

1

2

$270,000 - $279,999

-

1

$280,000 - $289,999

-

1

$290,000 - $299,999

1

1

$300,000 - $309,999

2

-

$310,000 - $319,999

-

1

$320,000 - $329,999

1

-

$330,000 - $339,999

-

1

$350,000 - $359,999

1

-

$370,000 - $379,999

1

-

$390,000 - $399,999

-

1

$420,000 - $429,999

-

1

$450,000 - $459,999

-

1

$470,000 - $479,999

1

-

$530,000 - $539,999

-

2

$540,000 - $549,999

2

-

$590,000 - $599,999

-

1

$620,000 - $629,999

-

1

$740,000 - $749,999

1

-

$940,000 - $949,999

-

1

46

49

City Rail Link Ltd Annual Report 2025

73

7. Chief Executive & Executive remuneration Number of Personnel

Fixed Remuneration and other benefits $(000)

Chief Executive FY25 (Patrick Brockie)

Commenced role effective 14 September 2024

1

632

FY25 (Sean Sweeney)

Resigned role effective 13 September 2024

1

198

1

948

FY25

10

3,799

FY24

10

4,224

FY24 (Sean Sweeney) Senior Managers (excluding Chief Executive)

The Chief Executive remuneration consists of Fixed Remuneration and other benefits. If the number of personnel were reported as FTE the number of Senior Managers including the Chief Executive would have been 9.7 FTE (2024: 10.3 FTE).

8. Other disclosure – Donation No donations were made by CRL Ltd during the year ended 30 June 2025 (2024: Nil).

74

City Rail Link Ltd Annual Report 2025

AUDIT REPORT

Independent Auditor’s Report Te Pūrongo a te Kaiōtita Motuhake Independent Auditor’s Report To the readers of City Rail Link Limited’s annual financial statements and performance information for the year ended 30 June 2025 The Auditor-General is the auditor of City Rail Link Limited (the company). The Auditor-General has appointed me, Carl Wessels, using the staff and resources of Audit New Zealand, to carry out, on his behalf, the audit of: •

the annual financial statements that comprise the statement of financial position as at 30 June 2025, the statement of financial performance, statement of changes in equity, and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information on pages 46 to 70;

•

the performance information that consists of: •

the statement of performance for the year ended 30 June 2025 on pages 12 to 33; and

•

the end-of-year performance information for appropriations for the year ended 30 June 2025 on pages 30 to 31.

Opinion In our opinion: • The annual financial statements of the company: •

• •

fairly present, in all material respects: •

its financial position as at 30 June 2025; and

•

its financial performance and cash flows for the year then ended; and

comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards.

The statement of performance fairly presents, in all material respects, the company’s service performance for the year ended 30 June 2025. In particular, the statement of performance: •

provides an appropriate and meaningful basis to enable readers to assess the actual performance of the company for each class of reportable outputs; determined in accordance with generally accepted accounting practice in New Zealand; and

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75

•

fairly presents, in all material respects, for each class of reportable outputs: •

the actual performance of the company;

•

the actual revenue earned; and

•

the output expenses incurred

as compared with the forecast standards of performance, the expected revenues, and the proposed output expenses included in the company’s statement of performance expectations for the financial year; and • •

complies with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards.

The end-of-year performance information for appropriations: •

provides an appropriate and meaningful basis to enable readers to assess what has been achieved with the appropriation; determined in accordance with generally accepted accounting practice in New Zealand; and

•

fairly presents, in all material respects:

•

•

what has been achieved with the appropriation; and

•

the actual expenses or capital expenditure incurred in relation to the appropriation as compared with the expenses or capital expenditure that were appropriated or forecast to be incurred; and

complies with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards.

Our audit was completed on 29 August 2025. This is the date at which our opinion is expressed.

Emphasis of matter - inherent uncertainties in the measurement of greenhouse gas emissions The company has chosen to include measures related to the project’s greenhouse gas (GHG) emissions in its performance information. Without modifying our opinion and considering the public interest in climate change related information, we draw attention to the Carbon Measurement Methodology disclosure on pages 28 to 29, which outlines the inherent uncertainty in the reported GHG emissions. Quantifying GHG emissions is subject to inherent uncertainty because the scientific knowledge and methodologies to determine the emissions factors and processes to calculate or estimate quantities of GHG sources are still evolving, as are GHG reporting and assurance standards

76

City Rail Link Ltd Annual Report 2025

AUDIT REPORT

Basis for our opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards, the International Standards on Auditing (New Zealand), and New Zealand Auditing Standard 1 (Revised): The Audit of Service Performance Information issued by the New Zealand Auditing and Assurance Standards Board.

Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of the Board for the financial statements and the performance information The Board is responsible on behalf of the company for preparing: •

Annual financial statements that fairly present the company’s financial position, financial performance, and its cash flows, and that comply with generally accepted accounting practice in New Zealand.

•

A statement of performance that: •

provides an appropriate and meaningful basis to enable readers to assess the actual performance of the company for each class of reportable outputs; determined in accordance with generally accepted accounting practice in New Zealand;

•

fairly presents, for each class of reportable outputs: •

the actual performance of the company;

•

the actual revenue earned; and

•

the output expenses incurred

as compared with the forecast standards of performance, the expected revenues, and the proposed output expenses included in the company’s statement of performance expectations for the financial year; and •

complies with generally accepted accounting practice in New Zealand.

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•

End-of-year performance information for appropriations that: •

provides an appropriate and meaningful basis to enable readers to assess what has been achieved with the appropriation; determined in accordance with generally accepted accounting practice in New Zealand;

•

fairly presents what has been achieved with the appropriation;

•

fairly presents the actual expenses or capital expenditure incurred in relation to the appropriation as compared with the expenses or capital expenditure that were appropriated or forecast to be incurred; and

•

complies with generally accepted accounting practice in New Zealand.

The Board is responsible for such internal control as it determines is necessary to enable it to prepare annual financial statements, a statement of performance, and the end-of-year performance information for appropriations that are free from material misstatement, whether due to fraud or error.

In preparing the annual financial statements, the statement of performance, and the end-ofyear performance information for appropriations, the Board is responsible on behalf of the company for assessing the company’s ability to continue as a going concern.

The Board’s responsibilities arise from the Crown Entities Act 2004 and the Public Finance Act 1989.

Responsibilities of the auditor for the audit of the annual financial statements and the performance information Our objectives are to obtain reasonable assurance about whether the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations, 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 carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations.

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City Rail Link Ltd Annual Report 2025

AUDIT REPORT

For the budget information reported in the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations, our procedures were limited to checking that the information agreed to the company’s statement of performance expectations or to the Estimates of Appropriations for the Government of New Zealand for the year ending 30 June 2025.

We did not evaluate the security and controls over the electronic publication of the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also: •

We identify and assess the risks of material misstatement of the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

•

We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board.

•

We evaluate whether the statement of performance and the end-of-year performance information for appropriations: •

provide an appropriate and meaningful basis to enable readers to assess the actual performance of the company in relation to the actual performance of the company (for the statement of performance) and what has been achieved with the appropriation by the company (for the end-of-year performance information for appropriations). We make our evaluation by reference to generally accepted accounting practice in New Zealand; and

•

fairly present the actual performance of the company and what has been achieved with the appropriation by the Company for the financial year.

•

We conclude on the appropriateness of the use of the going concern basis of accounting by the Board.

•

We evaluate the overall presentation, structure and content of the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations, including the disclosures, and whether the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations represent the underlying transactions and events in a manner that achieves fair presentation.

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79

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other information The Board is responsible for the other information. The other information comprises all of the information included in the annual report, but does not include the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations, and our auditor’s report thereon.

Our opinion on the annual financial statements, the statement of performance, and the end-ofyear performance information for appropriations does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the annual financial statements, the statement of performance, and the end-of-year performance information for appropriations, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the annual financial statements, the statement of performance, and the endof-year performance information for appropriations or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, 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.

Independence We are independent of the company in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of 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.

Other than in our capacity as auditor, we have no relationship with, or interests in, the company.

Carl Wessels Audit New Zealand On behalf of the Auditor-General Auckland, New Zealand

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City Rail Link Ltd Annual Report 2025

Kaitiaki installation in Te Waihorotiu Station City Rail Link Ltd Annual Report 2025

81

Maungawhau Station sky element in the early morning light 82

City Rail Link Ltd Annual Report 2025

City Rail Link Ltd Annual Report 2025

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The spectacular Beresford Square entrance