Statement of Performance Expectations 2023-2024

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HE WHAKAPUAKANGA KAWATAU MŌ TE TAU 2023/24 PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

Wellington iwi mana whenua (Taranaki Whānui ki te Upoko o te Ika and Ngāti Toa Rangatira), welcome Ngāti Hinewai, at Mākara Model School, 19 November 2022. Ngāti Hinewai gifted 13 kiwi, the first kiwi to call from the wild on the hills of Wellington in 150 years.

The return of the kiwi is an outcome of stoat removal efforts of The Capital Kiwi Project, one of the first six landscape projects funded

by PF2050 Limited.

D Dave Allen www.daveallen.photography for The Capital Kiwi Project

Copyright © 2023 This copyrighted work is licensed under the Creative Commons AttributionNonCommercial-No Derivatives 4.0 International license (CC BY-NC-ND 4.0).

In essence, you are free to copy and distribute the work (including in other media and formats) for non-commercial purposes, as long as you attribute the work to Predator Free 2050 Limited, do not adapt the work and abide by the other licence terms.

To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/.

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

Ihirangi Contents page

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.

Fiordland. D Shaun Lee.

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.

He kupu nā te Poari | Foreword from the Board

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He Whakapuakanga Haepapa | Statement of Responsibility

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Ngā Haumāuiuitanga | Achievements to date

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WĀHANGA TAHI: HE MAHERE PAEARU MAHI, AHU MONI KORE HOKI PART ONE: NON-FINANCIAL PLANNING AND PERFORMANCE

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Ko wai mātou | Who we are

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Ko ō mātou tāngata | Our people

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Tō mātou manawanuitanga ki Te Tiriti | Our commitment to Te Tiriti

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Kaikonihi kore a Aotearoa 2050, he kī taurangi | Aotearoa New Zealand’s Predator Free 2050 mission

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Tō mātou haepapa | Our role

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Tōpūtanga tahua | Our funding

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He whakatīnanatanga rautaki ki te tau 2050 | Our implementation strategy to 2050

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Tō mātou whakahautanga anamata | Our Outcomes Framework

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Ko ā mātou ohia hai te tau 2023/24 | What we want to achieve in 2023/24

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He Whāinga kawatau | Performance expectations

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WĀHANGA RUA: PŪRONGO PŪTEA PART TWO: FINANCIAL STATEMENTS

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He matapae pūrongo pūtea | Forecast financial statements

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He mātai matapae pūrongo pūtea | Notes to forecast financial statements

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RĀRANGI KUPU GLOSSARY

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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He kupu nā te Poari Foreword from the Board This Statement of Performance Expectations for 2023/24 outlines what Predator Free 2050 Limited (PF2050 Limited or “the Company”) intends to deliver in 2023/24 and how we will measure progress. Our areas of focus reflect our role within the wider Predator Free 2050 mission and confirm what we want to achieve as an organisation and how we will achieve this.

Our goal is to contribute to the New Zealand Government’s mission of eradicating possums, stoats, and rats from New Zealand by 2050. We do this by facilitating partnerships and co-funding arrangements that enable predator eradication operations, as well as driving and communicating the breakthrough science and new techniques necessary to achieve success.

From our establishment in 2016 to the present day, we have made steady progress towards our goals. Already through this mission we are seeing enhanced biodiversity and positive associated outcomes for wellbeing, jobs, regional development, and Māori leadership.

The complete eradication of possums, stoats and rats involves a complex mix of social, technical, and financial challenges.

We need to ensure they are well targeted and that all reinvading animals can be removed before a new population is established. Keeping the focus on what is needed to achieve eradication is crucial.

He Whakapuakanga Haepapa Statement of Responsibility PF2050 Limited will continue our programme of work to support large-scale predator eradication projects that enable biodiversity gains to rapidly follow. Our efforts to support the development of new and better tools that help advance the mission more efficiently and effectively will continue. We will continue to contribute to regional development and national employment through the creation of jobs that collectively grow capability to tackle the Predator Free 2050 mission. Researchers will be supported to focus on overcoming critical obstacles to mission success, and we will continue to support our young researcher capability development.

PF2050 Limited will continue to foster collaborative and supportive relationships with all our partners, but particularly with iwi who have such a significant role in conservation leadership in Aotearoa New Zealand around the restoration of mauri and mana.

PF2050 Limited is working closely with the Department of Conservation (DOC or “the Department”) to define options for the next phase of action to achieve the Predator Free 2050 goal. The Department is currently reviewing PF2050 Limited’s structure and purpose. This could result in some adjustments to our form and function.

We look forward to the year ahead and to making progress towards achieving our vision. We are committed to this important mahi and the wider benefits that the eradication of these predators will bring to Aotearoa New Zealand.

This Statement of Performance Expectations 2023/2024 (SPE) has been prepared by Predator Free 2050 Limited in accordance with the Crown Entities Act 2004.

This SPE sets out the forecast performance of PF2050 Limited for the period from 1 July 2023 to 30 June 2024.

It is presented in the knowledge that the Department is currently reviewing the Company’s structure and purpose, which could result in some adjustments to our form and function.

PF2050 Limited’s prospective financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and the audited accounts 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 PF2050 Limited has not met the expenditure threshold that requires it to report consistent with Tier 1 requirements.

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

Katie Milne, Director

30 June 2023

30 June 2023

E kore ā matou uara e tutuki i te rā Kotahi That which we value will not be achieved in a day.

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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Ngā haumāuiuitanga Achievements to date Science and research

Large-scale predator eradication projects Waiheke Island: Tracking to eradicate stoats by December 2023. Rat trials have started to provide information that will be helpful in any attempt to eradicate rats from the Island.

Taranaki: 2,000 ha of Kaitake farmland is in the defence phase where possums have been eliminated. Hit their goal of having one-in-five households involved in the trapping programme.

Seven new ‘capability development’ PhD students and postdoctoral researchers supported to build the new science capability that the mission needs

1080 ZERO Supported ZIP’s elimination model development that has now been applied over 43,600 hectares Hawke's Bay: 5,500 ha of the Māhia Peninsula is possum-free and the project is on track to eliminate possums from the whole peninsula by December 2023 (14,600 ha).

South Westland: 45% (43,574 ha) of the project area is in the defence phase and is effectively free from rats, stoats and possums.

Wellington: Weasels and stoats have been eliminated from Miramar Peninsula (1000ha) since July 2020, and Norway rats since January 2022. Ship rats have now been eliminated from 850ha of the peninsula, with elimination of the remaining animals underway.

Dunedin: On track to remove possums from Otago Peninsula by Sept 2024. Predator Free Dunedin is mopping up the last remaining possums in the first three operational sectors of Otago Peninsula (approximately 4,400 ha).

18 3 Large-scale predator eradication projects

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A collective approach for prioritising ‘embedded research’ has been initiated

of these projects are iwi-led.

Currently covering

790,590 ha

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

World first genome sequencing of target predator species completed for ship rats, stoats, and possums, driving increased understanding of how to better eradicate them

Refined use of thermal cameras with AI to improve predator detection sensitivity by up to 50-fold

Created a world first Data Standard for pest management so that data from all projects can be combined for analysis

Developing a new ‘toxic rat’ approach for efficiently removing surviving or reinvading stoats from the landscape

Products and innovation

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new products developed for large-scale projects to use, including long life ceramic lures, high-interaction traps, increased surveillance capacity through thermal cameras, artificial intelligence and remote communications

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scientific projects and research studies funded

Partnerships Supported Ngāti Awa to host and deliver a wānanga in September 2022 for all large-scale projects focused on engaging with tangata whenua and improving understanding the role of mātauranga Māori in predator eradication work

Crown funding of $79M has provided anchor funding that has secured new investment of $170M from the philanthropic, corporate and volunteer sectors

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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WĀHAGA TAHI: HE MAHERE PAEARU MAHI, AHU MONI KORE HOKI PART ONE: NON-FINANCIAL PLANNING AND PERFORMANCE

Brittany Graham is a PhD student at Lincoln University. She received funding in 2021 from Predator Free 2050 Limited to investigate the integration of control tools and attractants to optimise ground-based pest control.

This research addresses the question of how to best integrate ground control tools (traps and bait stations) with the best available attractants, aiming to optimise the integration and deployment of the latest control tools and determine the optimal combination of audio, social and food-based lures.

Brittany has gained an understanding of all traditional and new control tools used in New Zealand and has moved to the cutting edge of current research on lures.

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

D Parallax Films

Ko wai mātou Who we are Predator Free 2050 Limited is a small, Crown-owned, charitable company, established in 2016 under Schedule 4A of the Public Finance Act 1989.

Our purpose is to help deliver the New Zealand Government’s ambitious goal of eradicating possums, stoats, and rats by 2050. We have 16 staff members located in centres around New Zealand, with skills across ecology, eradication, project management, stakeholder engagement, research and product development, governance, financial reporting, and communications.

We currently have a Board of four Directors including the Chair and recruitment is underway to fill Director vacancies.

D Shaun Lee.

Our shareholding Ministers are the Minister of Conservation and the Minister of Finance. We are accountable to the Minister of Conservation who sets expectations of us each year through an annual Letter of Expectations. We are also subject

Ō mātou uara Our organisational values to any All of Government Directions issued by the Minister for the Public Service and the Minister of Finance.

At PF2050 Limited, we recognise and support the unique relationship iwi and hapū have with the environment, their place as tāngata whenua and the vital role they play in New Zealand’s economic, environmental, social, and cultural well-being.

As land managers, owners, guardians, and governors of significant natural resources, Māori have knowledge, skills and experience that are essential to success in the protection and restoration of our taonga species here in Aotearoa New Zealand. We will not achieve our mission without an overarching commitment to a Māori worldview.

PF2050 Limited’s organisational values are our guiding principles providing us with purpose and direction. They establish our approach to interacting with each other, and with our partners and stakeholders, and reflect the value we place on working with iwi and hapū to meet the Predator Free challenge.

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

He waka eke noa A canoe which we are all in with no exception

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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Ko ō mātou tāngata Our people

Tō mātou manawanuitanga ki Te Tiriti Our commitment to Te Tiriti

Our people drive our success. We have created and maintain an inclusive environment where our staff are encouraged to reach their full potential, and individual differences are valued and respected. We value diversity in our workplace. Our team represents multiple backgrounds and cultures.

We are committed to promoting equal opportunities for all through our recruitment policies and practice.

The principles of Te Tiriti o Waitangi apply to our work, and we strive to uphold strong and collaborative relationships with iwi and hapū.

We focus on delivering a healthy and safe working environment and ensure we meet the requirements of the Health and Safety at Work Act 2015.

To support delivery of our FY24 measures, our People Plan objectives for FY24 are: • Ongoing capability development in te ao Māori.

• Enhancements to our systems and processes that prioritise staff health and wellbeing.

• Continued refinement of our internal processes and operational policies to support efficient and effective delivery of our mahi.

• Increased capability and capacity in strategic financial management.

Currently, PF2050 Limited is delivering a Māori Capability work program designed to help build our internal capability in te ao Māori. Over the next year we will continue to progress this programme for staff so that they are able to more effectively engage with iwi and hapū. New staff members receive an induction on our Tiriti responsibilities.

Predator control specialist and wildlife ecologist Cam Speedy generously shares his 40 years of experience and knowledge with the sector. Teaming up with the Predator Free NZ Trust, Cam travels the country giving public talks to energise community groups with effective predator control advice. Cam also inspires and passes his wisdom on to the next generation of predator control specialists through the Predator Free Apprentice Programme.

Predator Free 2050 Limited and the Predator Free New Zealand Trust work collaboratively to engage communities and ensure the success of the Predator Free movement.

We support iwi, hapū or whānau-led eradication projects, of which there are already three. This support not only helps iwi and hapū to exercise kaitiakitanga on their whenua but allows us to demonstrate proven conservation leadership using tikanga and kawa. We have adopted a relationship/partnershipbased approach to consulting and collaborating with Māori and we require our non-iwi led projects to obtain the

support of tangata whenua. It is also a requirement of our investment that projects consult and collaborate with whānau, hapū and iwi, and that they agree to protect and respect mātauranga Māori (the intellectual property and traditional knowledge of mana whenua) as it relates to the project.

We support the projects to build capability within the Māori workforce.

This allows for the development of technical field work skills and experience, as well as the opportunity to both learn and contribute mātauranga Māori to the project.

Through our Research Strategy we encourage and support Māori to build capability in STEM (science, technology, engineering, and maths) research disciplines, and relevant projects to include mātauranga Māori aims.

We are supporting Ngati Awa to incorporate traditional indigenous knowledge into their pest eradication practice, demonstrating how the latest innovations in technology can be informed by local knowledge.

D Stuart Attwood

D Predator Free New Zealand Trust

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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Kaikonihi kore a Aotearoa 2050, he kī taurangi Aotearoa New Zealand’s Predator Free 2050 mission

Kōkako. D Shaun Lee.

Many of New Zealand’s taonga species – native birds, bats, reptiles, and invertebrates – cannot co-exist with introduced predators. Some of these precious species are now confined to offshore/fenced sanctuaries and/or threatened with extinction. Permanently removing introduced predators is an opportunity to halt decades of biodiversity decline across New Zealand.

investigate and develop new tools and techniques, and by attracting co-funders to contribute to this important mahi.

In July 2016, the New Zealand Government adopted a goal to eradicate predators from Aotearoa New Zealand by 2050 and this mission is being led by the Department of Conservation.

Achieving the goal is a hugely ambitious challenge and requires the efforts of many. We collaborate with iwi, central and local government agencies, and grass roots community organisations to achieve our vision and contribute towards implementation of the DOCled strategy - Towards a Predator Free New Zealand. This strategy wraps a collective framework around the actions of multiple parties by providing a path towards this shared goal.

PF2050 Limited was established to contribute to the Government’s goal by eradicating possums, rats, and stoats from New Zealand by 2050.

We do this by investing Crown funds into large-scale predator eradication projects as well as research projects that

The work of PF2050 Limited also contributes to the broader Aotearoa New Zealand Biodiversity Strategy 2020 Te Mana o te Taiao, which includes the wider biosecurity effort to protect biodiversity and other values, as shown in the diagram opposite.

Image used with permission

DOC’s interim goals for 2025 To progress its national Predator Free 2050 strategy, DOC has set seven interim goals for 2025.1 PF2050 Limited makes a significant contribution towards achieving these goals by:

• Striving to achieve a breakthrough science solution capable of eliminating at least one small mammal predator from the New Zealand mainland.

• Working to demonstrate that elimination of rats, stoats and possums is achievable on areas of at least 20,000 hectares, and that these areas can be defended without the use of fences.

• Developing and making available new tools and practices to achieve and defend elimination.

• Developing and improving iwi, landowner, and community engagement in large-scale predator eradication projects.

1.

See DOC’s Towards a Predator Free New Zealand Strategy, page 25. https://www.doc.govt.nz/globalassets/documents/conservation/ threats-and-impacts/pf2050/pf2050-towards-predator-freedom-strategy.pdf.

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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Tō mātou haepapa Our role

The wider benefits of a predator free Aotearoa New Zealand The benefits of the Predator Free 2050 mahi extend beyond the eradication of introduced pests and the restoration of native biodiversity. The predator eradication mission also supports the economy by providing jobs, increasing land productivity, and contributing to tourism. The collaborative nature of the work promotes connections between people and the whenua. It raises awareness of the importance of mātauranga Māori and contributes to New Zealand’s climate change goals through the protection of trees and enhancement of ecosystems.

The diagram below shows the enablers and delivery elements that are needed to achieve predator eradication, as well as the short and long-term benefits for Aotearoa New Zealand.

PF2050 Limited contributes to all these enablers and delivery elements through our work, and we collaborate with all other parts of the system to drive the mission forward.

Carbon sequestration

Ecosystem services

Māori communities and corporate and philanthropic organisations.

Go to page 23 for an explanation of co-funding and how it works.

The projects are delivered through hapū/iwi groups, regional councils, and philanthropic and communityled partnerships. We provide projects with end-to-end wrap around support across the six phases towards project completion.

The six phases of a landscape project

National pride

Employment and skills

Dramatic reduction in conservation costs

SHORT-TERM BENEFITS

PF2050 Limited invests in and supports these projects. Co-funders are then sought to provide additional investment to boost the projects’ scale and success.

Co-funders come from a range of sectors, including local government,

s Biodiversity Stra tegy Zealand’ New

Tourism LONG-TERM BENEFITS

PF2050 Limited is responsible for identifying large, high-value predator control projects across New Zealand.

These projects target predator eradication across urban, rural and forest areas and are generally agnostic about land tenure.

Export potential of tools and knowledge

3. Pre-Operational Preliminary field work such as discussions with landowners for property access permission. Excludes wider community engagement and communications.

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

4. Operational Elimination, and buffer zone suppression, activity such as trapping, baiting, surveillance, monitoring, device network establishment and field trials.

5. Mop up All activity to remove last remaining individual predators.

High

Biodiversity

1. Feasibility Determine whether elimination or eradication is possible. Feasibility includes technical, financial, cultural, and social considerations.

ERADICATION

OUTCOME

ENABLERS Commercialisation

R&D embedded in landscape projects

Funding

Partnerships and knowledge sharing

Project funding

Strategic roll out at scale

DELIVERY ELEMENTS

Low

Predator Free 2050 Limited

Tools and technology

Breakthrough science

Landscape projects

Capability building

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

6. Defence Surveillance, detection and all activity to remove any invading predator(s).

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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collaborations across research and large-scale predator eradication projects is critical to our success.

Additionally, we fund new research and development that could lead to the scientific and technological breakthroughs needed to achieve the Predator Free 2050 goal.

We have built up a wealth of institutional knowledge on the tools and techniques best suited to eradicating the ‘big three’ predators in Aotearoa New Zealand’s unique environment. This knowledge has been acquired through research and development findings applied to on-the-ground projects.

As a small organisation tasked with playing a significant role in delivering the Predator Free 2050 goal, effectively partnering, collaborating, and facilitating

Our partnership approach enables the sharing of valuable learnings and knowledge, provides opportunities for training and development, and empowers sector-wide discussions on matters critical to delivering the Predator Free mission.

Established as an intentionally lean organisation, we effectively invest the Company’s resources to ensure maximum impact for the predator free 2050 mission.

Delivery partners

Mā tini, mā mano ka rapa te whai

ng a

ha ge s

ar ni

ri n

Le

g

Funding and support

ar

i

Identify and secure project opportunities

n d k n o w le d Le

ar

sh

ng

nin

ga

n d k n o w l e d ge

PF2050 Limited

Support

Many hands make light work

s Strateg ic p a rt n e r

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Te Papa Atawhai Department of Conservation The Department is the lead agency responsible for facilitating delivery of the overall Predator Free 2050 mission and sets the strategic direction. It also delivers a significant component of Predator Free 2050 including predator management, regulatory work, and partnership development. We work closely with DOC at both a strategic and operational level to ensure that our goals and activities are complementary.

As our monitoring agency, DOC acts on behalf of the Minister of Conservation to protect the Government’s ownership interests. This includes engagement on accountability and reporting requirements, and other engagement as needed.

PF2050 Limited is a critical enabler for the mission

Funding

Some of our key collaboration partners:

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

We are actively involved in three Predator Free strategy collaborative working groups, which are supported by DOC. Iwi, hapū and whānau Tangata whenua have a key role in achieving a predator free Aotearoa New Zealand. We value tāhuhu kōrero (history) and the knowledge of kaumātua to help us understand how the landscapes have evolved over time, and we want to learn from those relationships. We do this by building relationships of trust and respect, by approaching discussions with a willingness to listen, by acknowledging and prioritising the needs of whānau, hapū, and iwi, and striving to meet their expectations.

Our collaboration with iwibased large-scale predator eradication projects gives us the opportunity to grow our understanding of te ao and mātauranga Māori so that we can incorporate this learning into future projects and share it with the wider predator eradication community.

Our project funding recipients must consult and collaborate with local whānau, hapū and iwi, and agree to protect and respect mātauranga Māori as it relates to the project.

Predator Free NZ Trust The Predator Free NZ Trust engages directly with community groups, agencies, iwi, families, and individuals, providing support, advice, and encouragement in local eradication efforts. We acknowledge the Trust’s skills in community engagement and follow their lead. We support the Trust with their apprentice programme and provide technical and science information to the Trust for sharing with the community.

OSPRI As part of their national programme to eradicate Bovine Tb (Bovine tuberculosis) from New Zealand, OSPRI operates a large possum control programme across the country (as possums are the largest vector of Bovine Tb). We work together to align OSPRI’s future operational plans with PF2050 Limited’s projects to maximise mutual benefit. We also coplan and co-fund research and development initiatives with OSPRI as opportunities arise.

Local government Regional councils are responsible primarily for delivering pest management on land outside DOC administered land. Many councils around the country are delivering Predator Free 2050 programmes. We collaborate with local government on strategic priorities and pipeline planning for future large-scale predator eradication projects, the development of new tools and best practice guides.

Ngā Koiora Tuku Iho Biological Heritage National Science Challenge This organisation’s primary goal is to reverse the decline of biological heritage in Aotearoa New Zealand. It co-ordinates the science system to deliver a science challenge that will assist in the development of new predator control tools and technologies.

Philanthropic organisations We partner with several philanthropic organisations who support major eradication projects and priority research and development initiatives.

Envico Technologies has been developing the Possum Spitfire.

Recently the staff of Envico Technologies began field trials in Glenorchy to test the longevity of the device. Arkady Edmunds is seen here mounting the device onto a beech tree before he activates it through his phone via Bluetooth. The Spitfire can be left unattended in the field for up to a year and is capable of delivering 100 lethal doses of toxin to possums.

Tōpūtanga tahua Our funding

D Chrissy Becker-Fifield Ko te rirohanga pūtea mai How we are funded

Pūtea tautoko Co-funding

Since our establishment in 2016, we have been funded through Vote Conservation with an initial allocation of $23.3M for 2016-2020, and thereafter through a five-year multiyear appropriation of $29.57M. We also received a commitment of $19.5M from the Provincial Growth Fund (PGF) in 2019, delivered over six years, to facilitate new large-scale predator eradication projects in provincial surge regions and accelerate investment in new eradication projects. In 2020, we received a commitment of $76M, delivered over four years, from the Jobs for Nature (JFN) fund. These significant boosts in funding have allowed us to make substantial advances towards our goals and create valuable jobs that help contribute to the wider economy.

A requirement at our establishment was that we secure additional investment from third parties at a rate of 2:1. This means that for every dollar of Vote Conservation and Provincial Growth funding we invest in projects, a further two dollars (including the value of in-kind contributions) is contributed by non-Crown co-investors. This is called the 2:1 co-funding ratio.

Provincial Growth Fund Jobs for Nature

The Jobs for Nature funding will end in June 2024 and the Provincial Growth Fund in November 2025, while the current Vote Conservation Multi Year Appropriation expires in June 2025 and is subject to renewal as part of Budget 2025. PF2050 Limited will need to secure new additional funding streams if it is to deliver on outcomes beyond June 2024, including maintaining projects already initiated.

2024/25

Co-funding requirements are not applied to administration costs, science,

2025/26

Project funding distribution over time varies according to funding source Projects funded by Vote Conservation & Provincial Growth Fund

$5.914M

$8.678M

$5.914M*

$2.7M

$0.545M

-

$23.622M

-

-

Co-funding 2:1

Project start

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

Projects funded by the Jobs for Nature Fund Co-funding

Average co-funding ratio over the life of the project

1.5:1

Jobs for Nature funding

Vote Conservation & Provincial Growth Fund

Low

*Subject to renewal as part of Budget 2025

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The co-funding ratio is calculated over the forecast life of each project. The graphs below show the distribution of both Company funds and third-party co-funding over the life of projects noting that there are always variations reflecting individual project dynamics.

Co-funding is typically lower at the start of a project and then increases during the middle stages, before reducing towards completion.

Our ability to achieve 2:1 across the lifespan of Jobs for Nature projects was impacted due to expectations for 1:1 co-funding that informed the contractual negotiations for early projects. The Jobs for Nature ratio of 1.5:1 reflects this impact.

High

Vote Conservation: Non-Departmental Output Expense

2023/24

D Predator Free New Zealand Trust

Project funding

Summary of Appropriation

Volunteers from the Menzshed Hataitai, Wellington, making predator traps.

products to projects and capability development costs. This is to ensure that our ability to support cutting-edge science and technology is not hindered by a requirement to attract co-funding.

Project end

Project start

Project end

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He whakatīnanatanga rautaki ki te tau 2050 Our implementation strategy to 2050

How the PF2050 Limited co-funding ratio is calculated Costing of volunteer and in-kind contributions is subject to a reasonableness test by the Company

Project costed

Since our establishment in 2016, we have been laying the foundations towards achieving our ambitious goal.

Includes cash and in-kind contributions from various funders covering the life of the project

Project budget set

Our implementation strategy has been focused in the early years on establishing proof of concept at a local scale. We have been demonstrating that our approach is realistic and effective (see Achievements to date, page 8) and sharing what we have learned with the predator eradication community so that they can apply that knowledge to advancing the mission.

Calculation STEP 1

STEP 2

Total project funding

Eligible 3rd party funding

Minus Public Service entity funding (cash + in-kind)

Divided by PF2050 Limited funding

Minus PF2050 Limited funding Co-funding ratio Eligible 3rd party funding

For example:

Company strategy to 2050

STEP 1 Total project funding

$10,400,000

Minus Public Service entity funding

$4,900,000

Minus PF2050 Limited funding

$2,200,000

Eligible 3rd party funding

$3,300,000

STEP 2: Eligible 3rd party funding

$3,300,000

Divided by PF2050 Limited funding

$2,200,000

Co-funding ratio

1.5:1

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

The focus of Phase 3 will be to increase the momentum by translating our advances into practice, addressing remaining hurdles to success, and protecting the gains that have been made in previous decades. We will see local communities and organisations equipped and enabled to continue the mahi, providing support where it is needed.

Phase 1

Phase 2

Phase 3

Laying the foundations

Consolidation and building momentum

National implementation

Progress towards eradication (hectares cleared)

(Indicative, for illustrative purposes only)

2017

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Once long-term funding is secured, the second phase will be about consolidation and building momentum, growing capability and capacity, achieving science breakthroughs, delivering more new tools and approaches, driving their best practice development, and extending proof of concept to a regional scale.

2025

2030

Proof of concept at local scale and without fences in back country, rural, and urban environments

Proof of concept at regional scale using natural barriers

Breakthrough science foundations in place

Achieving science breakthroughs

Building capability (approaches and tools)

2050

Translating advances into practice

Department of Conservation

Tō mātou whakahautanga anamata Predator Free 2050 Limited Outcomes Framework

Our Outcomes Framework establishes us as an important partner within the broader Predator Free 2050 mission. It sets out PF2050 Limited’s vision and the outcomes we expect to achieve.

Our outcomes Our vision Possums, rats and stoats are eradicated by 2050, enabling Aotearoa's ecosystems to thrive

Aotearoa New Zealand Biodiversity Strategy / Te Mana o te Taiao

Vision Te Mauri Hikahika o te Taiao / The mauri of nature is vibrant and vigorous

Predator Free 2050 Strategy

Vision Return the voices of the insects, bats, reptiles, and birds back to the forests, farmland, towns, cities and coasts

Our role

Indigenous plants and wildlife returning to abundance and richness

Catalyse and enable research and development in pursuit of innovative tools and approaches to predator eradication

Collaborate and partner with whānau, iwi and hapū, communities, non-governmental organisations and individuals to build awareness, facilitate knowledge sharing and support delivery (including through co-funding) of predator eradication

Ecosystems being restored to health Whānau, hapū and iwi expressing kaitaikitanga / rangatiratanga Generations of New Zealanders reconnecting with our ngahere and natural environments International standing of New Zealanders is increased through predator management, innovation and expertise Ecosystems more resilient to climate change

Through our investment, predator eradication research, development, and knowledge, is enhanced

Total investment in predator eradication R&D Number of R&D partnerships funded Number of R&D ideas advanced to proof of concept, proof of application or leveraged into application Number of Mātauranga Māori projects funded

As an integral part of the wider Predator Free system, we:

Identify and invest in predator eradication projects

Outcomes

Innovation

Our measures

Our values Tiakina – We will honour and protect the natural environment

Project delivery Through our co-funding of predator eradication projects, land in defence phase is significantly increased

Project-level partnership & co-funding There is increased support from a network of partners who co-fund and deliver predator eradication projects alongside us

Total hectares in defence phase (cumulative) for Predator Free 2050 Limited projects Total hectares in operational phase (cumulative) for Predator Free 2050 Limited projects A pipeline of potential large-scale eradication projects that could be funded (if funding is available)

Dollar value of co-funding investment contributed Number of landscape projects supported by Predator Free 2050 Limited that are iwi-led

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 we will collaborate and share knowledge to achieve a collective vision Manaakitanga – We will respect and uphold the mana of people and place

Participation & alignment Through our knowledge sharing, awareness building, and strong relationships with iwi, there is increased participation and alignment

Number of workshops/hui held Percentage increase in social media followers Number of information updates disseminated to our funded projects

Ko ā mātou ohia hai te tau 2023/24 What we want to achieve in 2023/24 We expect to commence work in 2023/24 to:

In addition, we will continue to deliver on existing priorities.

• Adjust our approach to put greater emphasis on extracting the learnings and knowledge gained from practical on-the-ground predator eradication activities undertaken by the projects, to ensure that we are sharing the acquired knowledge across the wider Predator Free community and growing capability to tackle the Predator Free 2050 mission.

• We will continue to enhance our capability in te ao Māori and build on our strong team culture.

• Develop our approach to ensure we leverage the long-term gains achieved by the projects that we fund, with a focus on innovative eradication methods and defendability of the gains made.

• In the 2023/24 financial year we expect to have revenues of $32.2M, enabling us to continue to provide financial support for up to 18 large-scale predator eradication projects and investment in a portfolio of research, product development and capability building.

• The projects we support will be aiming to eliminate predators over an area of around 850,000 hectares at completion.

He Whāinga kawatau Performance expectations He Whakapuakanga Putanga Paearu Output Class Appropriation: Predator Free New Zealand PF2050 Limited is required to outline the performance information it reports against the Predator Free New Zealand output class contained in the Estimates of Appropriations 2023/24 for Vote Conservation in accordance with s149E(2) of the Crown Entities Act 2004.

Scope The Appropriation contributes towards activities aimed at controlling and eradicating mammalian pests in New Zealand by 2050.

• Re-assess our investment approach to ensure we focus on opportunities that will generate learnings and knowledge of increasingly more effective and efficient methods to target predators and solve outstanding action learning questions.

• We will have identified a pipeline of potential new projects capable of eradicating predators on a large scale.

• We will have advanced more tools for predator eradication from our Products to Projects suite.

Assessment of Performance

Target 2023/24

Estimated Actual 2022/23

Investment in landscape projects contributing to new hectares being in operational phase

23,100 hectares

New Measure Baseline 2023/24

• Assess our organisational resourcing needs to support a longer term sustainable operating model.

• With the PGF funding, we will have made substantial progress towards our target to establish 77 regional jobs (FTEs) by November 2025. With the JFN funding, we will have created 103 jobs (FTEs)2 in the 23/24 year and achieved our overall target of 500 jobs(FTEs) by June 2024.

Investment in projects contributing to new predator management tools being available to landscape eradication projects

3

New measure Baseline 2023/24

• We will have enhanced our approach to securing co-funding for predator eradication projects from strategic funding partners.

• We will seek to deepen existing relationships and create new relationships with iwi and hapū. We will continue to prioritise these relationships as well as our aspirations for incorporating the Te Tiriti principles into our day-to-day decision making.

How performance will be assessed and end of year reporting requirements

Expected revenue and proposed expenses NZD 000’S

Budget 2023/24

Revenue Crown

32,236

Revenue Other

15

Expenses

34,021

NET SURPLUS (DEFICIT)

(1,770)

• We will continue to prioritise the health and safety of our staff by ensuring our processes meet best practice.

2.

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Refer to the glossary for the definition of a Jobs for Nature job.

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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He whakapuakanga ratonga mahi mō te tau 2023/24 Statement of Service Performance for 2023/24 In preparing our performance information, we have made judgements about what to include based on our newly developed outcomes framework, our role as part of the wider Predator Free 2050 mission, our funding sources, and consideration of what will be most appropriate and meaningful to users while ensuring that our reporting is robust and accurate.

Consideration

Our judgement

Our new outcomes framework ensures that our outcomes clearly reflect our aspirations and our key areas of focus. The identification of measures and targets were part of that process.

Our measures and targets contribute directly to the outcomes and vision in our new outcomes framework.

PF2050 Limited contributes to the Government’s goal of a Predator Free Aotearoa New Zealand by 2050. There are many other entities that contribute to that goal, and we collaborate closely, so it is important that our measures and targets capture what is attributable to the work of the Company.

Our measures and targets are directly attributable to the mahi of PF2050 Limited.

PF2050 Limited has three main sources of Crown funding, each with their own accountability requirements. Our targets reflect those expectations.

Our measures and targets will allow for accurate reporting on the requirements of our Crown funding agreements.

We have included additional information about these measures and targets to assist the user in understanding the accountability requirements of each funding source.

Our measures and targets need to be accurately reported on. The supporting information must be robust and reliable.

Our measures and targets enable accurate reporting.

The measures and targets we have included need to be appropriate and meaningful to users.

Our measures and targets are appropriate and meaningful to users. They are relevant to our mahi and stated simply and clearly.

The first project to be funded by Predator Free 2050 Limited, Towards Predator-Free Taranaki - Taranaki Taku Tūranga is a large-scale project aimed at restoring Taranaki’s unique wildlife, plants and protecting the region’s lifestyles and livelihoods by removing introduced predators. Recently the project hosted our CEO, Rob Forlong, on a day out visiting the varied landscape within the project area. Rob was updated on the Kaitake Zero Possum project which has not had an incursion in over 18 months (as of March 2023), before heading to Ōakura to see the project’s incursion response monitoring technology. The students of Mangorei School are involved in the urban part of the project and they spent time with Rob checking traps, setting wax tags and discussing how their school is involved.

D Charlotte Curd Our Statement of Intent 2022-26 states that our primary tasks are to: • raise funds for co-investment • invest in strategic landscape-scale predator control and eradications • invest in breakthrough science research All these tasks are undertaken in collaboration with partners, from whom our funding motivates aligned support and co-funding.

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

In 2023/24 we developed a new outcomes framework which sets out our role within the wider Predator Free 2050 mission, outlines strategic outcomes and shows how we will measure success.

We will report against these measures in our 2023/24 Annual Report.

Most of our measures are new for the 2023/24 year because this is the first year we are operating under our new outcomes framework. As such, 2023/24 will be a baseline year for measuring future success.

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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He whakatau paearu mahi How we will measure our performance Refer to page 26 for the full outcomes framework.

1

Our outcome Innovation Through our investment, predator eradication research, development, and knowledge, is enhanced Innovation in science, research and development is needed if the mission is to be successful. Building and supporting a new and inclusive community of practice, pursuing a strategically directed portfolio of advances across the close-far knowledge horizons, will help us overcome critical hurdles to success. These measures demonstrate needed investment into innovative partnerships with a strong focus on outcome achievement.

2

Our outcome Project delivery Through our co-funding of predator eradication projects, land in defence phase is significantly increased Once a potential landscape has been identified, there are then six phases to a project; feasibility, planning, pre-operational, operational, mop up and defence (See The six phases of a landscape project diagram on page 19). We have selected the defence and operational phases of landscape projects as the key measures for our project delivery outcome as these reflect, respectively, the two most significant phases: those projects that have achieved eradication and those that are in the most labourintensive phase. Measure 2.3 highlights the readiness of projects to commence operations as funding becomes available, an important indicator of momentum and continuity. The reduced target reflects a new focus on larger and more ambitious pipeline projects compared with previous projects of lower complexity and scale.

Our measures Our measures 2023/24 target

2022/23 target

2022/23 estimated actual

Total investment in predator eradication R&D

At least $3.6M in total research, development, and knowledge investment invoiced in FY24

New measure.

Baseline 23/24

New measure.

Baseline 23/24

1.2

Number of R&D partnerships funded

At least 9 partnerships funded in FY24

New measure.

Baseline 23/24

New measure.

Baseline 23/24

1.3

Number of R&D ideas advanced to proof of concept, proof of application or leveraged into application

At least 4 ideas advanced in FY24

New measure.

Baseline 23/24

New measure.

Baseline 23/24

Number of mātauranga Māori projects funded

At least 1 project funded in FY24

New measure.

Baseline 23/24

New measure.

Baseline 23/24

Measure 1.1

1.4

Measure

2023/24 target

2022/23 target

2022/23 estimated actual

2.1

Total hectares in defence phase (cumulative ) for Predator Free 2050 Limited projects

90,000 hectares in defence phase as at 30 June 2024

New measure.

Baseline 23/24

New measure.

Baseline 23/24

2.2

Total hectares in operational phase (cumulative ) for Predator Free 2050 Limited projects3

450,000 hectares in operational phase as at 30 June 2024

New measure due to change of focus and to remove ambiguity in previous measures.

403,412

2.3

A pipeline of potential large-scale eradication projects that could be funded (if funding is available)

10 large-scale eradication projects in pipeline in FY24

20

20

3.

We chose cumulative measures instead of annualised ones as they better indicate total progress to date towards the Predator Free 2050 objectives.

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3

Our outcome Project-level partnership & co-funding There is increased support from a network of partners who co-fund and deliver predator eradication projects (including science) alongside us Leveraging Company funds to attract third party investment is a core requirement of our funding. Working in collaboration with all our partners, particularly with iwi, is essential if we are to achieve our long term goals. The measures selected reflect these important priorities.

4

Our outcome Participation & alignment Through our knowledge sharing, awareness building and strong relationships with iwi, there is increased participation and alignment “Learning by doing”, trialling new methods and tools, and sharing acquired knowledge is critical in determining the most effective and efficient approaches to predator eradication that will allow the wider Predator Free 2050 community to achieve the long term goal. Raising awareness and building support for the mission will boost third party funding and contribute to the social licence that is essential to success.

The success measures we have chosen reflect our commitment to these goals.

Our measures

Measure

2023/24 target

2022/23 target

2022/23 estimated actual

3.1

Dollar value of co-funding investment contributed

$10M-$20M of co-funding contributed in FY244

New measure.

New measure.

Baseline 23/24

3.2

Number of large-scale eradication projects supported by Predator Free 2050 Limited that are iwi-led

3 iwi-led large-scale eradication projects funded in FY24

3

3

We have used a target range for co-funding because the timing of the application of both Company and third-party funding rarely run in parallel (refer to Project Funding Distribution graph on page 23) 4.

Go to page 23 for an explanation of co-funding and how it works.

Non-core and time bound function – job creation

The creation of 500 jobs in large-scale predator eradication projects and research and development investments to help boost the regional economy was a key requirement of the funding we received in Budget 2020 as part of the Jobs for Nature Programme.

The measure allows us to show progress towards achieving that goal by June 2024.

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Measure

2023/24 target

2022/23 target

2022/23 estimated actual

4.1

Number of workshops / hui held

4 workshops/hui held in FY24

2

2

4.2

Number of social media followers

10% increase in social media followers in FY24

7760

8300

4.3

Number of information updates disseminated to our funded projects

10 information updates disseminated to our funded projects in FY24

6

8

Definition of a Jobs for Nature job

Through our project-level investments, jobs are created in support of Jobs for Nature outcomes

5.

Our measures

Measure

2023/24 target

2022/23 target

2022/23 estimated actual

Number of jobs5 (FTEs) created

103 jobs (FTEs) created in FY24 to support the overall target of 500 jobs (FTEs).

139

191

1 FTE (full time equivalent) = 30 hours per week over 52 weeks of the year (can be several people working hours that collectively add up to 30 hours per week over 52 weeks of the year).

The accumulated hours are calculated, not the number of new roles e.g. if one person works for 4 years, that is counted as 4 FTEs.

See definition on next page

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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WĀHANGA RUA: PŪRONGO PŪTEA PART TWO: FINANCIAL STATEMENTS

A young student from Mangorei School in New Plymouth checks a trap near the school where an urban Predator Free project is underway as part of the Towards Predator Free Taranaki project.

One of the original aims of the project was to have one in five households with a trap in their backyard and this has now been accomplished, which highlights the enthusiasm of the community to be involved.

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

D Charlotte Curd

Predator Free 2050 Limited Financial Statements for the year ended 30 June 2024

He matapae pūrongo pūtea Forecast financial statements

Forecast Statement of Comprehensive Revenue and Expense for the year ended 30 June 2024

These forecast financial statements include forecast Statement of Comprehensive Revenue and Expenses, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows for the 2023/24 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 Standards (PBE Standards) as appropriate for Tier 2 public benefit entities including PBE FRS 42 – Prospective Financial Statements.

PF2050 Limited may exceed $30M expenditure for the 22/23 financial year, which would require it to report under Tier 1 in the 23/24 financial year. We will assess the impact on the 23/24 annual financial statements if actual expenditure for 22/23 exceeds $30M. As there are no Tier 2 disclosure concessions in PBE FRS 42 this has no impact on the disclosures in these prospective financial statements.

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.

in New Zealand Dollars

Budget 2024 $000

Budget 2023 $000

Forecast 2023 $000

32,236

34,089

35,234

-

-

191

Third Party Investment Interest Received Total revenue

15 32,251

20 15 34,124

10 9 35,444

Expenses Employee benefits expenses Operating expenses Project investment costs Depreciation Total expenditure

2,771 1,636 29,594 20 34,021

2,398 877 30,760 61 34,096

2,259 1,379 29,247 29 32,914

Surplus (Deficit) for the year

(1,770)

28

2,530

-

-

-

28

2,530

Revenue Distributions Received Other Received

The statements have been prepared on a going-concern basis.

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

(1,770)

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

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

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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2

3 Predator Free 2050 Limited

Predator Free 2050 Limited

Financial Statements for the year ended 30 June 2024

Financial Statements for the year ended 30 June 2024

Forecast Statement of Changes in Equity

Forecast Statement of Financial Position as at 30 June 2024 in New Zealand Dollars

for the year ended 30 June 2024 Budget 2024 $000

Budget 2023 $000

Forecast 2023 $000

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

1,603 213 26 1,842

2,049 25 2,074

3,539 95 41 3,675

Fixed Assets Total non-current assets Total assets

33 33 1,875

280 280 2,354

23 23 3,698

Liabilities Trade payables Accrued expenses Total current liabilities

75 116 191

512 525 1,037

90 154 244

Total liabilities Net assets

191 1,684

1,037 1,317

244 3,454

Equity Retained earnings Total equity

1,684 1,684

1,317 1,317

3,454 3,454

in New Zealand Dollars

Retained earnings

Total

Balance at 1 July 2023

$000 3,454

$000 3,454

Surplus for the year Other comprehensive revenue and expense Balance at 30 June 2024

(1,770) 1,684

(1,770) 1,684

Retained earnings

Total

$ 924

$ 924

2,530 3,454

2,530 3,454

Opening Balance Surplus for the year Other comprehensive revenue and expense Balance at 30 June 2023

For and on behalf of the Board:

Denise Church Chairperson

Katie Milne Director

Dated: 30 June 2023

Dated: 30 June 2023

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

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

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

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PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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

PREDATOR FREE 2050 LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2023/24

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4 Predator Free 2050 Limited Financial Statements for the year ended 30 June 2024

He mātai matapae pūrongo pūtea Notes to forecast financial statements

Forecast Statement of Cash Flows for the year ended 30 June 2024 in New Zealand Dollars

Budget

Budget

Forecast

2024 $000

2023 $000

2023 $000

32,436

34,089

35,234

-

20

201

Cash paid for investment in projects

(30,188)

(30,760)

(30,395)

Cash paid to suppliers

(1,388)

(750)

(1,259)

Cash paid to employees

(2,691)

(2,398)

(2,179)

Cash paid for governance costs

(249)

(127)

(101)

Net GST

159

(419)

(253)

(1,921)

(345)

1,248

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 thousand, except when otherwise indicated.

Acquisition of property, plant, and equipment

(30)

(310)

(19)

Net cash from investing activities

(30)

(310)

(19)

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

Cash flows from operating activities Cash received from distribution income Cash received from third party investment income

Net cash from operating activities Cash flows from investing activities

Reporting entity Predator Free 2050 Limited is a company incorporated in New Zealand, registered under the Companies Act 1993, and is domiciled in 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 stoats 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.

(i) Statement of compliance

Cash flows from financing activities Interest received

15

15

11

Net cash from financing activities

15

15

11

(1,936)

(640)

1,240

Opening cash and cash equivalents

3,539

2,689

2,299

Closing cash

1,603

2,049

3,539

Made up of: Bank balances

1,603

2,049

3,539

Total cash

1,603

2,049

3,539

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

The forecast financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with the Public Benefit Entity International Public Sector Accounting Standards (PBE IPSAS) 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 Standards Reduced Disclosure Regime 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 our accounting policies in the year ended 30 June 2023. All accounting policies and disclosures are consistent with those applied by the Company in the previous financial year.

The External Reporting Board has also issued amendments to the following standards to incorporate requirements and guidance for the not-for-profit sector. These amendments apply to PBEs with reporting periods beginning on or after 1 July 2022. PF2050 Limited has set out on pages 32-35, the measures it plans to adopt 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, these measures have also been adopted as part of the Statement of Performance Expectation measures on page 34.

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

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Standard

Title

Application Date

PBE FRS 48

Service Performance Reporting

1 July 2022

(ii) Going concern The forecast financial statements have been prepared on a going concern and a historical cost basis. The Directors believe the use of the going concern assumption is appropriate, as DOC has agreed to provide baseline funding of $5.914M per annum to June 2025, and confirmed it will be subject to renewal as part of Budget 2025.

The timing of drawdowns from the Crown are primarily governed by cash flow needs, which may result in a reported deficit at any one point in time.

Notes and assumptions In preparing these financial statements we 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. The critical assumptions used in the estimates include: • movement in resources to backfill vacant roles and the need to enhance Māori capability, • full implementation of the landscape project support model including IT support and infrastructure, • maintaining influence through social media, communications, and stakeholder engagement.

Key variances between Forecast 2023 and Budget 2024 Distributions received Reduction of $3.0M. Drawdowns are based on project delivery timetables and assumes current feasibility studies move to the funded projects.

Employee benefits expenses Increase of $512K largely due to vacancies which were carried through most of FY23 and a new role building up Māori capability funded for FY24.

Project investment Increase of $347K, reflecting deferment of payments to projects from FY23 to FY24.

Depreciation Reduction of $9K due to adopting a more remote working environment, office equipment such as desks are no longer required.

Operating expenses Increase of $258K reflecting external assistance to achieve planned initiatives.

Capital intentions FY 2023/2024 PF2050 Limited’s capital assets consist primarily of ICT to support business capabilities, and software.

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RĀRANGI KUPU GLOSSARY Big Three predators – Possums, stoats, and rats.

Co-funding – Any investment not provided

by PF2050 Limited or the “Crown”, as defined separately below. See pages 23-24.

Co-funding ratio – The matching investment (financial and non-financial/in-kind contributions) for every eligible $1 invested by PF2050 Limited to a landscape project. The ratio is presented in the following format: xx:1. See pages 23-24.

Crown – All ‘central government organisations’ identified by the Public Service Commission at the time a project was established. (https://www.publicservice.govt.nz/ourwork/state-sector-organisations/).

Defence phase – The final phase of a predator eradication project focused on preventing reinvasion. Includes surveillance, detection, and all activity to remove any invading predator(s) before a new breeding population becomes established. See page 19 for an explanation of the six phases of a project.

Embedded research – Research conducted as part of landscape project operations.

Eradication – The complete removal of possums, stoats, and rats from a defined area.

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. Our Jobs for Nature targets and reporting are based on FTEs.

Job – Any new job that is directly funded from, and established because of, the receipt of committed funding from Jobs for Nature or Provincial Growth Fund sources.

This includes eradication projects, science strategy, product and tool development, and administration and reporting roles but excludes in-kind jobs. A job is calculated as follows: 1 FTE = 30 hours per week over 52 weeks of the year (can be several people working hours that collectively add up to 30 hours per week over 52 weeks of the year).

The accumulated hours are calculated, not the number of new roles e.g. if one person works for 4 years, that is counted as 4 FTEs

Large-scale predator eradication projects – A PF2050 Limited contracted project aiming to achieve predator eradication or suppression at scale.

Mustelids – Stoats, ferrets, and weasels.

Operational phase – Typically the most labourintensive phase of a predator eradication project. Includes elimination and buffer zone suppression, activity such as trapping, baiting, surveillance, monitoring, device network establishment and field trials. See page 19 for an explanation of the six phases of a project.

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.

In-kind contributions – Non-financial contributions of goods or services. May include 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.

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

Kākā on Aotea Great Barrier Island. D Shaun Lee.

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

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Predator Free 2050 Limited is a Toitū carbonreduce certified organisation. We are committed to reducing our environmental impact and will be striving toward becoming a carbonzero workplace in the future.

Front & back cover: As part of the Capital Kiwi project, a team member tracks a kiwi using VHF to determine its location and nesting status (males) based on the “beeps” received. Each tracked bird has its own frequency. The tracking is to monitor the kiwi population and to gauge post-release success to inform future reloactions.

D Dave Allen www.daveallen.photography for The Capital Kiwi Project