SPE 25-26 Final

(C.30)

Predator Free 2050 Limited He Whakapuakanga Kawatau mō te Tau 2025/26 Statement of Performance Expectations for Financial Year 2025/26

Ko te rere a kea ki uta, ko te whakataki mai a toroa ki tai, a, he kōtuku ki te raki, he kākāpō ki te whenua. He wāhi tika ngā mea katoa.

The voice of the kea is heard inland and the voice of the albatross is heard at sea, a kōtuku in the sky, a kākāpō on the ground. Everything has its rightful place.

Copyright © 2025

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Attribution to Predator Free 2050 Limited should be in written form and not by reproduction of any such emblem or logo.

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Ngā kai o roto | Contents Ngā kai o roto | Contents ........................................................................................................................... 3 Te kupu whakataki | Foreword from the Board .......................................................................................... 4 Te Whakapuakanga Haepapa | Statement of Responsibility ....................................................................... 5 Wāhanga tahi: Ko wai te Konihi Kore 2050 me te aha | Part one: Who Predator Free 2050 Limited is and what the Company does ......................................................................................................................................... 6 Ko wai te Konihi Kore 2050 | Who Predator Free 2050 Limited is ............................................................... 6 Wāhanga rua: Horopaki rautaki| Part two: Strategic context .......................................................................... 7 Mahi tuwhera me te mahi tahi me Te Papa Atawhai ki te tautoko i te katinga tika | Work openly and cooperatively with the Department of Conservation to support an orderly wind down .............................. 7 Kaituku mahi pai | Good employer ............................................................................................................. 7 Whakapaunga tūpato | Prudent expenditure ............................................................................................. 8 Kia tere te whakakore i runga i tetahi tikanga e tiaki ana i nga moni a te Karauna me era atu paanga | Expedite disestablishment in a manner that protects the Crown’s financial and other interests ................. 8 Wāhanga toru: Ngā mahi mātua me ngā putanga | Part three: Key activities and outputs .............................. 9 Anga mahi | Performance framework ........................................................................................................ 9 Wāhanga whā: Pūrongo pūtea | Part four: Financial statements ...................................................................11 Pūtea Konihi Kore 2050 | Predator Free 2050 Limited funding ..................................................................11 He matapae pūrongo pūtea | Forecast financial statements ......................................................................11 He mātai matapae pūrongo pūtea | Notes to forecast financial statements ..............................................16 Rārangi kupu | Glossary ................................................................................................................................18

Manaaki whenua Manaaki tangata Manaaki i te anamata.

If we take care of the people And we take care of the land We will take care of the future.

Te kupu whakataki | Foreword from the Board On 22 May 2025, the Government announced the disestablishment of Predator Free 2050 Limited (PF2050 Limited or the Company) as part of a larger cost savings drive announced in Budget 2025.

The Statement of Performance Expectations 2025/2026 (SPE) is therefore the final SPE to be produced by PF2050 Limited.

The Company recognises the Government’s strong commitment to the Predator Free 2050 goal and will use the coming period to make the strongest possible contribution to that goal. As requested by the Minister of Conservation, all PF2050 Limited’s existing investment contracts will be transferred to the Department of Conservation, the Predator Free Programme Lead, to administer. The Department of Conservation is a close working partner of PF2050 Limited, so staff will ensure the transition is as smooth as possible.

This document outlines what PF2050 Limited intends to deliver in 2025/2026, how it will be achieved and how progress will be measured. PF2050 Limited’s areas of focus reflect the wind down of the Company and the instruction to the Company to complete disestablishment by 30 November 2025. The Company will take a prudent and thorough approach to ensure that all aspects of wind down and disestablishment are completed in a timely and comprehensive way.

Since 2016, when the New Zealand Government first announced the ambitious goal of eradicating possums, rats and mustelids (stoats, ferrets and weasels) from Aotearoa New Zealand by 2050, the Company has been committed to this goal. With the removal of the ‘Big Three’ predators, some of the most invasive and harmful to the survival of the country’s distinct native species, there are many positive outcomes.

Over the first phase of the programme, and aside from the improvements in biodiversity, jobs have been created, opportunities have arisen to strengthen partnerships with Māori, and community volunteer groups have come together to make a highly visible impact. Aotearoa New Zealand’s journey to becoming predator free is a unique ‘point of difference’ for visiting tourists. There is also a potential link between predator free areas and increased carbon sequestration. With outstanding levels of community support helping to drive the results, there are few areas of investment that can claim a greater return.

The Predator Free 2050 National Strategy (2025-2030) is now in development and will reflect the programme’s priority targets for this crucial next phase. Achievement of the PF2050 goal depends on collaboration, innovation, community engagement and a diverse network of organisations. What projects learn from on-the- ground application of tools and technology is also critical to achieving the 2050 goal.

Six large-scale predator elimination projects (also known as landscape projects) have recently been contracted to complete embedded research and development (R&D) operational trials.1 These trials involve testing and optimising new tools and approaches to eliminate target species, as well as intercepting and removing invaders in a range of urban and rural environments. Additionally, these projects will explore efficiencies to reduce the costs of elimination and defence.

1

See Rārangi kupu | Glossary for the Company’s definition of ‘embedded R&D’.

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Further research breakthroughs are essential to a predator free Aotearoa. On the horizon is a world first effective toxic bait that is specific to rats, with no harmful effects on other species.

Development of the bait is currently undergoing regulatory registration for ship and Norway rats.

PF2050 Limited extends good wishes and support to the Department of Conservation as they form new collaborative partnerships with landscape projects, take on the role of catalyst and broker for embedded R&D, and drive knowledge exchange and uptake, including identifying important capability gaps to be filled.

It has been a privilege for the Board and staff of the Company to contribute to this world leading mahi, which redefines how we tackle conservation challenges and live with nature. To everyone whose path has crossed with the Company’s in the predator free space, know you are being wholeheartedly cheered on as you continue to pursue the Predator Free 2050 goal.

Te Whakapuakanga Haepapa | Statement of Responsibility This Statement of Performance Expectations 2025/2026 has been prepared by PF2050 Limited in accordance with the Crown Entities Act 2004 and sets out the forecast performance of the Company for the period from 1 July 2025 to 30 November 2025.

PF2050 Limited’s prospective financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice, and its audited financial statements will comply with the applicable financial reporting standards. The financial statements have been prepared consistent with Public Benefit Entity Tier 2 requirements on the basis that the 2025 financial year (FY25) forecast costs are below $30M. Therefore, the Company expects to report under Tier 2 in FY26.

The Board of Directors (the Board) of PF2050 Limited is responsible for the prospective financial statements contained in this document, including the appropriateness of the underlying assumptions.

On behalf of the Predator Free 2050 Limited Board:

Denise Church Chair

30 June 2025

Dr Bruce Campbell Director

30 June 2025

E kore ā matou uara e tutuki i te rā kotahi.

That which we value will not be achieved in a day.

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Wāhanga tahi: Ko wai te Konihi Kore 2050 me te aha | Part one: Who Predator Free 2050 Limited is and what the Company does Ko wai te Konihi Kore 2050 | Who Predator Free 2050 Limited is In 2016, the New Zealand Government adopted a goal to eradicate possums, rats and mustelids from Aotearoa New Zealand by 2050 (referred to as the PF2050 goal, the goal, the PF2050 mission or the mission). This work is directed by the Department of Conservation | Te Papa Atawhai and led to the establishment of PF2050 Limited in 2016 under Schedule 4A of the Public Finance Act 1989.

PF2050 Limited is a small, Crown-owned, charitable company. PF2050 Limited works in partnership with the Department of Conservation, major projects and innovators to focus on advancements to accelerate the elimination of possums, rats and mustelids outside the main conservation estate.

These are food and fibre-producing areas, backcountry, and urban land where people live and work.

The Company works with partners to focus priorities and make investments into breakthrough science, tool development and new tool adoption needed for success.

Te moemoeā a Konihi Kore 2050 | Predator Free 2050 Limited’s vision Possums, rats and mustelids are eradicated by 2050, enabling the people and ecosystems of Aotearoa New Zealand to thrive.

Ngā uara whakahaere | Organisational values Tiakina – We will honour and protect the natural environment.

Whanaungatanga – We will value, nurture, and support authentic relationships.

Werohia – We will challenge ourselves to pursue innovative solutions.

Houruatanga – We will be trusted partners and will collaborate and share knowledge to achieve a collective vision.

Manaakitanga – We will respect and uphold the mana of people and place.

Ko te mahi a Konihi Kore 2050 | The role of Predator Free 2050 Limited Until the disestablishment, PF2050 Limited was a key part of the team (see below) led by the Department of Conservation to remove all possums, rats and mustelids from the Aotearoa New Zealand mainland by 2050.

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PF2050 Limited contracts and supports large-scale predator elimination projects across Aotearoa that collectively contribute towards the Predator Free 2050 goal by unlocking cost-effective and scalable predator elimination techniques. Projects are selected for their value in contributing to the strategic direction of the PF2050 programme.

As part of the contracts the Company has with projects, they are required to generate additional non-government funding (referred to as ‘co-funding’) from third-party investors to boost the projects’ scale and success. The Company also connects potential co-funders to landscape projects.

PF2050 Limited’s funding and support of breakthrough science, research projects and new tools is focused on delivering the most effective and efficient predator elimination methods in urban as well as rural environments.

Wāhanga rua: Horopaki rautaki| Part two: Strategic context The Statement of Performance Expectations has been prepared reflecting receipt of the Minister of Conservation’s disestablishment letter on 22 May 2025.

Mahi tuwhera me te mahi tahi me Te Papa Atawhai ki te tautoko i te katinga tika | Work openly and cooperatively with the Department of Conservation to support an orderly wind down PF2050 Limited is working with the Department of Conservation on the disestablishment process.

This includes the provision of regular progress reports outlining risks, timeframes and forecast cash flow.

As previously stated, all existing investment contracts will be transferred to the Department of Conservation to administer.

To support delivery of PF2050 Limited’s FY26 measures, wind down objectives for FY26 are that the Company: •

and the Board work with the Department of Conservation as they assist the Shareholding Ministers during the wind down process, including advising on progress

•

work with the Department of Conservation as the Predator Free Programme Lead to support a smooth transfer of contracts, intellectual property, strategic and sector relationships and institutional knowledge.

Kaituku mahi pai | Good employer The commitment of PF2050 Limited’s people has driven the Company’s success. PF2050 Limited strives to create and maintain an inclusive environment where staff are encouraged to reach their full potential and individual differences are respected. The Company values diversity in the workplace. The team represents multiple backgrounds and cultures.

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PF2050 Limited focuses on delivering a healthy and safe working environment and ensures the requirements of the Health and Safety at Work Act 2015 are met.

To support delivery of PF2050 Limited’s FY26 measures, good employer objectives for FY26 are that the Company: •

continues to meet its obligations as a good employer, providing support and assistance as appropriate, for all staff

•

wind up employee arrangements efficiently and effectively.

Whakapaunga tūpato | Prudent expenditure The Company recognised that it faced a challenging near-term Crown funding environment. For some time, PF2050 Limited had been working to drive the highest value from a reducing budget.

All investments had to pass three tests before they were approved: (1) Were they in line with the Predator Free 2050 National Strategy, (2) did they maximise the value of the scarce funding, and (3) did they help unlock scalable methods and tools to meet the Predator Free 2050 objective? Projects in the Company Investment Plan were reviewed at least annually and where necessary funds were adjusted to obtain the best value for money.

In anticipation of the current fiscal constraints, PF2050 Limited commenced a cost savings programme and organisational restructure. These actions reduced the Company operating budget for FY25 by 18% (compared to the FY24 operating budget) and allowed the Company to continue to provide a service to projects, which minimised the risks arising from a significant reduction in project funding.

To support delivery of PF2050 Limited’s FY26 measures, prudent expenditure objectives for FY26 are that the Company: •

is prudent with all assets and expenditure including avoiding any unnecessary expenses

•

does not enter into new contracts or modify existing contracts, other than to transfer investment contracts to the Department of Conservation and to terminate other contracts (such as suppliers)

•

fund the costs relating to disestablishment through existing funding. Drawdown of Crown funding will be in line with the revised financial forecast, after utilising cash held by the Company.

Kia tere te whakakore i runga i tetahi tikanga e tiaki ana i nga moni a te Karauna me era atu paanga | Expedite disestablishment in a manner that protects the Crown’s financial and other interests The Board has fiduciary duties to act in the best interests of the Company.

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To support delivery of PF2050 Limited’s FY26 measures, disestablishment objectives for FY26 are that the Board will scale down staff resourcing and operations immediately so that substantial operations of the Company cease by 14 August 2025, and disestablishment and removal from the Companies Register occurs no later than 30 November 2025.

Wāhanga toru: Ngā mahi mātua me ngā putanga | Part three: Key activities and outputs Anga mahi | Performance framework Ngā putanga me ngā tātai | Outcome and measures The outcome and measures (below) relate to the disestablishment of the Company.

Outcome Disestablishment

Measure •

Smooth transfer of contracts, intellectual property, strategic and sector relationships and institutional knowledge from the Company to the Department of Conservation.

•

Record of the Company’s physical and intangible assets, residual rights, obligations and liabilities, and data holdings are maintained.

•

The Company ceases business, discharges in full all known liabilities, distributes all surplus assets and is removed from the Companies register.

The disestablishment of the Company through the final phase is effective and efficient.

He whakapuakanga putanga tōpū paearu | Output class measures and targets PF2050 Limited’s performance expectations (below) are set annually and represent the Company’s

objectives to 30 November 2025, as well as how progress towards those objectives is measured.

Expected revenue and proposed expenses – Predator Free New Zealand NZD 000’S Revenue (Crown) Revenue (other) Less: Expenses NET SURPLUS (DEFICIT)

Budget 2025/26 0 0 4,307 (4,307)

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He whakapuakanga ratonga mahi mō te tau 2025/26 | Statement of Service Performance for 2025/26 Disclosure of judgements In preparing performance information, while ensuring that reporting is robust and accurate, PF2050 Limited has made judgements about what to include based on the Minister of Conservation’s disestablishment letter.

Me pehea e ine ai te Konihi Kore 2050 i ana mahi | How Predator Free 2050 Limited will measure the Company’s performance Outcome 1. Disestablishment The disestablishment of the Company through the final phase is effective and efficient.

Judgement: PF2050 Limited continues to work towards the wind down and closure of operations to ensure obligations are fully discharged. The Company is conscious that as it reduces in size and approaches a wind down of operations, the impact of key individuals departing is likely to increase the risk and ability to discharge remaining obligations.

Measure

Target 2025/26

Estimated Actual 2024/25

1.1

Smooth transfer of contracts, intellectual property, strategic and sector relationships and institutional knowledge from the Company to the Department of Conservation.

Contracted parties have agreed arrangements with the Department of Conservation by 14 August 2025.

New measure.

Baseline FY26

1.2

Record of the Company’s physical and intangible assets, residual rights, obligations and liabilities, and data holdings are maintained.

Records are transferred or disposed of in accordance with the Public Records Act 2005 by 30 November 2025.

New measure.

Baseline FY26

Completed by 30 November 2025.

New measure.

Baseline FY26

1.3

The Company ceases business, discharges in full all known liabilities, distributes all surplus assets and is removed from the Companies register.

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Wāhanga whā: Pūrongo pūtea | Part four: Financial statements Pūtea Konihi Kore 2050 | Predator Free 2050 Limited funding Since PF2050 Limited was established in 2016, the Company has been funded through Vote Conservation with an initial allocation of $23.3M for 2016 to 2020, and thereafter through a fiveyear multi-year appropriation of $29.57M. PF2050 Limited also received a commitment of $19.5M from the Provincial Growth Fund in 2019, delivered over six years, to facilitate new landscape projects to support in provincial surge regions and accelerate investment in new landscape projects.

In 2020, PF2050 Limited received a commitment of $76M, delivered over four years, from the Jobs for Nature fund. These significant boosts in funding allowed PF2050 Limited to make substantial advances towards the Company’s goals and create valuable jobs that help contribute to the wider economy.

The delivery timetable for the Jobs for Nature funding – initially ending in June 2024 – has been extended to June 2026, while the Provincial Growth Fund term is ending in November 2025.

He matapae pūrongo pūtea | Forecast financial statements These forecast financial statements include the forecast Statement of Comprehensive Revenue and Expenses, Statement of Financial Position, Statement of Changes in Equity, and Statement of Cash Flows for the 2025/2026 financial year.

Predator Free 2050 Limited’s prospective financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). The prospective financial statements comply with Public Benefit Entity (PBE) Standards as appropriate for Tier 2 public benefit entities including PBE Financial Reporting Standard (FRS) 42 – Prospective Financial Statements.

As FY25 forecast costs are below $30M, the Company expects to fall under Tier 2 in FY26 and have therefore applied Tier 2 reporting in the Statement of Performance Expectations 2025/2026.

The forecast financial statements are based on estimates and assumptions. Actual financial results achieved for the forecast period are likely to vary from information presented, and variations may be material. The statements have been prepared on a disestablishment basis.

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Forecast Statement of Comprehensive Revenue and Expense for the year ended 30 June 2026 in New Zealand Dollars Budget 2025 $000

Forecast 2025 $000

Budget 2026 $000

Revenue Distributions Received Other Received Interest Received Total revenue

20,153 90 10 20,253

20,152 122 12 20,286

-

Expenses Project investment costs

16,641

16,638

1,818

Operating Costs: Employee benefits expenses Board Expenses Operating expenses Exit costs Transfer of cash to DOC Depreciation Other Costs (Contingency) Total operating costs Total expenditure

2,502 222 871 17 3,612 20,253

2,194 138 675 50 14 3,071 19,708

1,058 68 461 200 596 6 100 2,489 4,307

Surplus (Deficit) for the year

-

578

(4,307)

Other comprehensive revenue and expense

-

-

-

Total comprehensive revenue and expense for the year

-

578

(4,307)

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

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Forecast Statement of Financial Position for the year ended 30 June 2026 in New Zealand Dollars Budget 2025 $000

Forecast 2025 $000

Budget 2026 $000

Assets Bank Trade and other receivables Other current assets Total current assets

2,912 942 23 3,877

2,950 1,848 35 4,833

200 200

Fixed Assets Total non-current assets

54 54

15 15

-

Transfer and distribution to DOC Total assets

(200) 3,931

4,848

-

90 195 285

71 195 266

-

Total liabilties Net assets

285 3,646

266 4,582

-

Equity Current Year Earnings Retained earnings Total equity

3,646 3,646

578 4,021 4,599

(4,307) 4,599 292

Liabilities Trade payables Accrued expenses Total current liabilities

Transfer and distribution to DOC Closing position

(292) 3,646

4,599

-

For and on behalf of the Board:

Denise Church Chairperson Dated: 30 June 2025

Dr Bruce Campbell Director Dated: 30 June 2025

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

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Forecast Statement of Changes in Equity for the year ended 30 June 2026 in New Zealand Dollars

Balance at 1 July 2025 Surplus (Deficit) for the year Other comprehensive revenue and expense Transfer and distribution to DOC Balance at 30 June 2026

Opening Balance Surplus (Deficit) for the year Other comprehensive revenue and expense Balance at 30 June 2025

Retained earnings $000 4,599

Total

(4,307) (292) -

(4,307) (292) -

Retained earnings $000 4,021

Total

578 4,599

578 4,599

$000 4,599

$000 4,021

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

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Forecast Statement of Cash Flows for the year ended 30 June 2026 in New Zealand Dollars Budget

Forecast

Budget

2025

2025

2026

$000

$000

$000

20,153

18,902

1,250

90

122

-

(16,641)

(16,657)

(1,918)

Cash paid to suppliers

(871)

(770)

(655)

Cash paid to employees

(2,451)

(2,173)

(1,200)

(222)

(138)

(68)

-

-

(596)

Cash flows from operating activities Cash received from distribution income Cash received from third party investment income Cash paid for investment in projects

Cash paid for governance costs Transfer to DOC Net GST

(84)

51

437

Net cash from operating activities

(26)

(663)

(2,750)

(30)

(14)

-

-

-

-

(30)

(14)

-

Interest received

10

12

-

Net cash from financing activities

10

12

-

(46)

(665)

(2,750)

Opening cash and cash equivalents

2,958

3,615

2,950

Closing cash

2,912

2,950

200

2,912

2,950

200

Credit Card

-

10

-

Total cash

2,912

2,960

200

-

-

(200)

2,912

2,960

-

Cash flows from investing activities Acquisition of property, plant and equipment Proceeds on disposal of property, plant and equipment Net cash from investing activities Cash flows from financing activities

Made up of: Bank balances

Transfer and distribution to DOC Closing position

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

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He mātai matapae pūrongo pūtea | Notes to forecast financial statements Reporting entity Predator Free 2050 Limited is a Company incorporated in Aotearoa New Zealand, registered under the Companies Act 1993, and domiciled in Aotearoa New Zealand.

The purpose and principal activity of PF2050 Limited is to make a significant contribution to the New Zealand Government’s goal of eradicating possums, rats and mustelids by 2050.

Basis of preparation The financial statements have been prepared on a historical cost basis and the accounting policies have been applied consistently throughout the period.

The forecast financial statements are presented in New Zealand Dollars ($), which is the Company’s functional currency. All financial information presented in New Zealand Dollars has been rounded to the nearest dollar, except when otherwise indicated.

PF2050 Limited is exempt from income tax under section CW 42(1)(a) of the Income Tax Act 2007 (as a registered charity).

(i)

Statement of compliance

The forecast financial statements have been prepared in accordance with NZ GAAP. They comply with the PBE International Public Sector Accounting Standards and other applicable Financial Reporting Standards.

The forecast financial statements have been prepared in accordance with PBE Standards Reduced Disclosure Regime (PBE RDR) and disclosure concessions have been applied. The criteria under which an entity is eligible to report in accordance with PBE RDR is due to the Company not being publicly accountable or large, as defined by the External Reporting Board (XRB) Standard A1: Application of Accounting Standards.

The forecast financial statements of PF2050 Limited have been prepared in accordance with the relevant requirements of the Public Finance Act 1989 and the Crown Entities Act 2004, which includes the requirement to comply with NZ GAAP. There have been no changes in PF2050 Limited’s accounting policies in the year ended 30 June 2025. All accounting policies and disclosures are consistent with those applied by the Company in the previous financial year.

The External Reporting Board issued amendments to the following standards to incorporate requirements and guidance for the not-for-profit sector. These amendments applied to PBEs with reporting periods beginning on or after 1 July 2022. PF2050 Limited has set out the measures it has adopted in relation to the PBE FRS 48 Service Performance Reporting Standard. As the Company has allocations from Crown funds that have non-core mission contractual criteria (such as the creation of full-time equivalent jobs as part of the Jobs for Nature funding), these measures have also been adopted as part of the Statement of Performance Expectations (SPE) measures.

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Standard PBE FRS 48

(ii)

Title Service Performance Reporting

Application Date 1 July 2022

Disestablishment

The forecast financial statements have been prepared on a disestablishment and a historical cost basis. The Directors have reflected the disestablishment directive. Note the SPE preparation environment is fluid, and the following assumptions were used in the preparation of the SPE financials: •

All counterparties to investment contracts will consent to the transfer of their investment contract to the Department of Conservation, and as requested by the Department of Conservation all investment contracts will be transferred to the Department of Conservation on 14 August 2025 (and not before). The Company will administer and pay all amounts due under the investment contracts until they are transferred to the Department of Conservation.

•

Any counterparties who do not consent to transfer will be given notice of termination by the Company on 14 August 2025. The Company will continue to administer and pay amounts due under these investment contracts until the relevant notice period expires. The forecast financial statements do not include any provision for these amounts, as PF2050 Limited has assumed that all counterparties will consent to transfer.

•

The SPE reflects that the Department of Conservation will pay the $1.25M (plus GST) invoice (Inv-0154) relating to the 2024/2025 financial year raised on 7 May 2025 (due for payment on 17 May 2025) by no later than Friday, 4 July 2025. To ensure solvency throughout the forecast period, this forecast is dependent on this payment being made. Without this payment, the Company will not be able to pay all project invoices to August 2025.

•

The Company will repay unspent funds back to the Department of Conservation in accordance with and as required by clause 8(c) of the Funding Agreement (DOC-CM 7631286), which states: ‘to the extent that amounts may have been paid in advance by DOC, the Company will be liable for repayment of unspent or uncommitted funds.’ This mechanism has been used in our cash flow forecast (see line ‘Transfer of cash to DOC’). If the above approaches are taken the directors are comfortable the cash balance is at a level where the Company can pay the final expenses and not be placed at risk of insolvency at any time during closure.

•

Once all PF2050 Limited financial commitments have been fully discharged, the closing cash balance will be returned to the Department of Conservation.

•

All reasonable care has been used in the preparation of the financial statements but should PF2050 Limited require additional funds to close the Company, the forecasted repayment amount may be varied to reflect this. If this occurs the Company would be reliant on the Department of Conservation to provide sufficient funds in a timely manner to ensure the Company remains solvent and is not impacted by cashflow issues throughout the wind down process.

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•

Staff are reduced post 14 August 2025 until PF2050 Limited closure by 30 November 2025. A high-risk factor for the Company to manage is the potential further loss of staff over that completion period.

•

The Department of Conservation will process all project related payments from 14 August 2025, while all operating/administrative invoices will continue to be processed by PF2050 Limited until closure. This enables the Company to exit or transition services to the Department of Conservation during that period.

•

PF2050 Limited’s payroll will remain with the Company’s external accountants until the last staff member leaves. This ensures the avoidance of payroll errors during the transition.

Notes and assumptions In preparing these financial statements PF2050 Limited have made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed reasonable under the circumstances.

Key variances between Forecast 2025 and Budget 2026 Distributions received Reduction of $20.3M reflecting the FY26 budget reflects the disestablishment of the Company.

Project investment Reduction of $14.7M reflecting the FY26 budget reflects the disestablishment of the Company.

Operating costs Reduction of $0.7M reflecting the FY26 budget reflects the disestablishment of the Company.

Rārangi kupu | Glossary Big Three predators – Possums, rats and mustelids (stoats, ferrets and weasels).

Biodiversity – Short for ‘biological diversity,’ refers to the variety of biological life on earth, including plants, animals and microorganisms, as well as the genes they contain and the ecosystems they form.

Co-funding – Any investment not provided by PF2050 Limited or the Crown, as defined separately below.

Co-funding ratio – The matching investment (financial and non-financial/in-kind contributions) for every eligible $1 invested by PF2050 Limited into a landscape project. The ratio is presented in the following format: xx:1 (with ‘xx’ representing the co-funding partner and ‘1’ representing PF2050 Limited).

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Contracting –Long-term active engagement with projects as an active investor both in individual projects and the collective of landscape projects, technology developers and researchers. Engagement includes strategic review and definition of priority investment areas; formal contracting; funding and monitoring; active technical guidance; and identification and promotion of insights and new knowledge to support adaptive and dynamic development of efficient tools and methods.

Crown – All central government organisations identified by the Public Service Commission at the time a project was established (as per the Ngā whakahaere kāwanatanga | Central government organisations webpage).

Defence stage – Where a project considers that they have removed all the resident target species from an area. At that point the project moves its emphasis to monitoring the area for incursions and eliminating any detected predators.

Elimination – An area will be considered to have eliminated a target species if an independent statistical audit shows that there is a greater than 95% probability of the area containing no resident predators. At this point, the focus shifts to defending the border and responding to any incursions from outside.

Embedded R&D – Working within landscape projects to trial emerging tools and techniques to inform the most effective and efficient approaches to eradication in different contexts.

Eradication – The achievement of the PF2050 goal. Eradication can only occur at an island (such as Rakiura) or mainland (such as the South Island or North Island) scale. Eradication occurs when the statistical modelling and observable data both confirm that the target species is no longer present.

At this point, the emphasis moves to biosecurity to prevent the accidental reimportation of the predator species from offshore. In some cases, foundational documents refer to eradication (which was the commonly used term at the time) when they should refer to elimination.

Feasibility stage – The critical foundational stage of a landscape project that determines whether elimination can be achieved. It includes an assessment of the technical, financial, cultural and social elements of a project.

FTE – Full-time equivalent. A unit of measurement that indicates the workload of an employed person in a way that it is comparable across various contexts. Jobs for Nature targets and reporting are based on FTEs. Funding agreement (contract) – PF2050 Limited delivers its funding through a funding agreement, effectively a contract with the project which sets out the deliverables required by the Company. The funding agreements have a termination clause for when requirements are not met.

For landscape projects, these deliverables can include the area (hectares) and species to be eliminated, co-funding requirements, reporting, job creation requirements and milestones/performance indicators. Landscape project funding agreements also require an eradication/operational plan which set out details of how the operation will complete the eradication (or the ‘embedded R&D operational trial’). This plan must be approved by the Company.

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For science research and new tool development, project funding agreements set out the tool to be developed and the research or other relevant service to be undertaken. They also include milestones/performance indicators, and co-funding, reporting, and job creation requirements as relevant.

In-kind contributions – Non-financial contributions of goods or services. May include free use of equipment (such as vehicles), pro bono legal or expert advice, or people’s time (where those people can perform the task to the required standard). In-kind contributions are costed at market value, subject to a reasonableness test.

Large-scale predator elimination projects – Also known as landscape projects. A PF2050 Limited contracted project aiming to achieve predator elimination at scale.

Mop up stage – The penultimate stage of a landscape project focused on removing any last remaining predators from a defined area.

Multi-species – All three species included in the Predator Free 2050 National Strategy (possums, rats and mustelids) present in a project area.

Mustelids – Stoats, ferrets and weasels.

New tools – Newly developed tools, be they wholly new tools or improved versions.

Operational stage – Typically the most labour-intensive stage of a predator elimination project.

Includes predator elimination and buffer zone suppression; activities such as trapping, baiting, surveillance and monitoring; device network establishment; and trials in the field.

Planning stage – Detailed planning and design work to enable the execution of a large-scale landscape project.

Pre-operational stage – Preliminary field work for a landscape project, such as discussions with landowners for property access permission. Excludes wider community engagement and communications.

Support – Includes, but is not limited to, providing technical predator elimination advice and guidance; advice on trial design; Geographic Information Systems and data assistance; linking predator elimination projects to new research and products; facilitating knowledge sharing between predator elimination initiatives; providing additional health and safety assurance; assisting to obtain co-funding; and troubleshooting any hurdles faced by projects.

Suppression – Control of predators to an agreed level (often expressed as x% Residual Trap Catch – RTC, or Residual Trap Index – RTI) to reduce the impact of predation on the target species.

Ka tangi te titi, ka tangi te kākā, ka tangi hoki ahau, tihei mauri ora.

The titi is calling, the kākā is calling, and I wish to call, behold for there is life.

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