Annual report
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ANNUAL REPORT 2026
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Propel owns and operates funeral homes, cremation facilities, cemeteries and related infrastructure in Australia and New Zealand.
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Contents FY26 Snapshot 2 Our Track Record 4 Letter from the Chair and Co-CEOs 5 Our Vision 6 Our Strategy 7 Our ESG Journey 8 Board of Directors and Executives 10 Financial Report 12 Shareholder Information 96 Corporate Directory 99 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 1
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FY26 Snapshot Operating NPAT $20.7m 4.0% Operating EBITDA $55.3m 1.6% Dividend 14.4cps FY25: 14.4cps Average Revenue Per Funeral1 $6,673 ~2%2 on a comparable basis Revenue $226.6m 0.3% Funeral Volumes 22,854 1.1% ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 2
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1. Means revenue from funeral operations, excluding direct disbursements (such as third party cemetery fees and third party cremation fees) and delivered pre-paid impacts, divided by the number of funerals in the relevant period. 2. NZD/AUD exchange rate constant with FY25. 3. As at 30 June 2026. 4. As at 25 August 2026. Cash Flow Conversion 100.7% 150 bps Locations3 211 6 Expansion3 NZ Gearing Ratio3 30.9% Net Leverage Ratio3: 2.2x Funding Capacity4 $169m Acquisitions4 $314m Deployed since IPO ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 3
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Our Track Record Funeral Volumes (#) Revenue ($m) Operating EBITDA ($m) Operating NPAT ($m) 1,625 2,967 6,054 10,111 11,304 13,299 13,916 16,537 18,029 21,655 22,602 22,854 FY26FY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15 1.5 2.9 5.5 12.3 13.3 14.2 15.3 17.7 20.9 21.1 21.6 20.7 FY26FY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15 10.9 22.4 46.1 80.9 95.1 110.8 120.4 145.2 168.5 209.2 225.8 226.6 FY26FY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15 3.1 5.8 12.3 21.5 23.8 32.4 36.3 39.0 46.0 55.4 56.2 55.3 FY26FY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 4
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FRASER HENDERSON Co-Founder and Co-CEO NAOMI EDWARDS Chair LILLI RAYNER Co-Founder and Co-CEO Dear Fellow Shareholders, On behalf of the Board, we are pleased to present the 2026 Annual Report of Propel Funeral Partners Limited (‘Propel’ or ‘Company’). We would like to take this opportunity to acknowledge the many client families who have farewelled loved ones over the past 12 months and thank them for entrusting our businesses to support them at such an important time. We would also like to extend our sincere gratitude to our employees across Australia and New Zealand for their continued commitment to providing essential and caring funeral and related services to the communities we serve. During the year, one of Propel’s co- founders and former Managing Director, Albin Kurti, retired. On behalf of the Board, we thank Albin for his leadership and significant contribution to the Company throughout his tenure. The transition of two of Propel’s co-founders to Co-CEOs has been seamless, with the Company’s strong culture and operating principles maintained. In FY26, Propel generated revenue of $226.6 million (FY25: $225.8 million), Operating EBITDA of $55.3 million (FY25: $56.2 million) and Operating NPAT of $20.7 million (FY25: $21.6 million). The Board declared fully franked dividends totalling 14.4 cents per share in connection with FY26 (FY25: 14.4 cents). This includes a final dividend of 6.9 cents per share, fully franked, which will be paid on 1 October 2026 to shareholders on the register as at 2 September 2026. As at 30 June 2026, the Company had total assets of $650 million, including $252 million of freehold properties, held at cost. Propel had a gearing ratio of 31% and a net leverage ratio of 2.2 times, compared with a covenant limit of 5.0 times. During FY26, the Company refinanced its senior debt facilities with Westpac Banking Corporation, extending the maturity of its $275 million facilities to October 2029, establishing a new $50 million Accordion Facility and improving its pricing. Propel remains in a strong funding position, with approximately $170 million of available funding capacity, including the Accordion Facility. Since it was established, Propel has grown to become the second largest provider of death care services in Australia and New Zealand. In FY26, Propel performed approximately 23,000 funerals. Having completed five acquisitions in FY26 and since, the Company’s network now comprises 213 locations across Australia and New Zealand, of which 130 are owned and 83 are leased, including 42 cremation facilities and nine cemeteries. Propel remains focused on a clearly defined acquisition-led growth strategy, acquiring and operating businesses within the death care sector. Since listing on the ASX in 2017, the Company has deployed approximately $314 million on acquisitions. The highly fragmented nature of the industry continues to provide a significant opportunity for further consolidation. The death care industry continues to evolve in response to changing client family preferences, increased digital engagement and the emergence of lower value, digitally led providers in certain markets. With this backdrop, Propel remains focused on delivering the value of meaningful funeral experiences through its trusted local brands, broadening its service and product offerings, strengthening its digital marketing and client engagement capabilities and continuing its operational discipline across its network. These initiatives position the Company to meet evolving client family expectations and support long-term value creation. The Directors’ Report provides further commentary on Propel’s FY26 performance and outlook. As a provider of essential services, Propel remains committed to operating responsibly and sustainably and to integrating environmental, social and governance (‘ESG’) considerations into its operations, culture and decision-making processes. Further information on the Company’s approach and progress is contained in this Annual Report. Looking ahead, Propel is well positioned to benefit from increasing death volumes associated with population growth and the ageing of the baby boomer generation. The Company also expects to benefit from acquisitions completed to date and future acquisitions within a highly fragmented industry, together with the strength of its diversified network of market leading brands. Supported by a strong financial position and experienced leadership team, Propel is focused on disciplined execution of its acquisition strategy, continued operational improvement and the delivery of sustainable long-term value for shareholders. In closing, we thank shareholders for their ongoing support. Letter from the Chair and Co-CEOs ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 5
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Propel’s vision is to further consolidate the highly fragmented death care industry in Australia and New Zealand while serving client families with care and dignity. We aim to: • pr ovide succession solutions for vendors • pr eserve and enhance the goodwill and quality of services provided by our funeral homes, cemeteries and cremation facilities • empo wer our staff via a decentralised operating model with engaged and responsive management • tr eat stakeholders with professionalism, dignity and respect • cr eate value through disciplined capital allocation and active network management Our Vision ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 6
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Propel’s strategy is to acquire and operate assets within the death care industry in Australia and New Zealand. An investment strategy focussed on: • e xpanding into locations with favourable demographics through organic and inorganic initiatives • ac quiring and/or establishing death care assets, such as: – funer al homes – c emeteries and cremation facilities – r elated properties and infrastructure • ac tively managing the network Our Strategy ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 7
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Every family will need the services of a funeral provider at some stage in their life, placing enormous trust in the people and organisations that care for them at one of their most vulnerable times. At Propel, we do not take this responsibility lightly. Dignity, respect and professionalism are fundamental to how we support client families and engage with our stakeholders. As the only funeral home operator listed on the Australian Securities Exchange, Propel recognises the importance of strong governance, transparency and accountability. The listing brings an additional level of rigour that aligns with the trust placed in our businesses by client families, employees, shareholders, suppliers and the communities Propel serves. As a leading provider of funeral and related essential services, Propel is committed to conducting its business responsibly, while creating long-term value for shareholders. During FY26, Propel continued to strengthen its governance framework, invest in employee wellbeing and capability, support local communities and progress initiatives aimed at reducing environmental impacts. In this context, Propel is pleased to share part of its ESG journey by highlighting some areas of focus: Do the right thing A guiding principle at Propel is to “do the right thing”. This not only applies to its dealings with client families, but it also applies to how Propel interacts with other external and internal stakeholders. Governance The Board comprises six members, including a majority of Independent Non-Executive Directors. During FY26, Propel updated its Board and Committee Charters to recognise the governance and oversight responsibilities associated with the requirements of the Australian Sustainability Reporting Standard, AASB S2 Climate-related Disclosures. The updates formalise the oversight of climate-related risks, opportunities and disclosures, supporting alignment with evolving regulatory and governance expectations. Code of Conduct Propel is committed to maintaining ethical standards in the conduct of its business activities. Propel’s reputation is important to its ongoing success and it expects all of its employees to be familiar with, and have a personal commitment to, meeting these standards. Propel’s Code of Conduct, which is available on its website, has regard to the principles of respect, honesty, fairness, integrity, duty of care and compliance with the law. Diversity and Inclusion Propel’s Diversity Policy reflects its commitment to equal opportunity and a workplace free from discrimination. Propel engages, promotes and trains its people on the basis of their capabilities, qualifications and experience, without discrimination. A copy of Propel’s Diversity Policy is available on its website. Gender Equality Propel complies with the Workplace Gender Equality Agency (‘WGEA’) Reporting Scheme. In accordance with the Workplace Gender Equality Act 2012 (Cth) (‘Act’), Propel is a “relevant employer” and as required by the Act, lodged a public report in May 2026, a copy of which is available on its website. Propel is proud to disclose that in its FY25 WGEA report, the Company’s: • w orkforce comprised 51% female and 49% male; • k ey gender pay gap metrics such as average total remuneration, median total remuneration, average base salary and median base salary, were all materially favourable to the national average; • me dian total remuneration and median base salary gaps were within the WGEA target range; and • Non-Ex ecutive Directors comprised 50% female and 50% male. Our ESG Journey ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 8
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Supply Chain Given Propel’s annual revenue is more than $100 million, the Company is required to comply with the Modern Slavery Act 2018 (Cth) (‘MSA’). As it is required to do under MSA, it lodged its Modern Slavery Statement on the public register, a copy of which is available on its website. The Company estimates that more than 96% of the products it acquires, by value, were purchased from market leading specialist suppliers based in Australia and/or New Zealand. Accordingly, it believes it has less exposure to modern slavery than most other companies who are required to comply with the Act. Notwithstanding, Propel has implemented a Supplier Code of Conduct, which sets out the minimum standards of behaviour Propel requires of its suppliers. Each supplier that provides Propel with goods valued at over $200,000 (ex GST) per annum is provided with an on-boarding questionnaire which is used to assess modern slavery risks. Safety & Wellbeing Propel is committed to providing a safe environment for its employees. During FY26, Propel completed the implementation of its new WHS Management System in Australia and commenced the roll out in New Zealand. The program is focussed on the health, safety and wellbeing of employees. As part of the Propel’s long term commitment to a safe environment Propel partnered with CQUniversity to fund an Elevate Scholarship. The three- year scholarship will support a research project focused on employee wellbeing in the death care industry. The project will cover workforce resilience, fatigue management and psychosocial risks, with the aim of developing practical, evidence-based tools to enhance employee wellbeing and support sustainable work practices across the industry. Pr opel also provides employees with access to an Employee Assistance Program and a range of wellbeing initiatives. Propel continued to promote its “Staying Well Together” intranet. Through this initiative, employees can access wellbeing content, online training, access counselling services and resources on managing psychosocial risk in the workplace. Propel has continued to expand wellbeing content through its intranet, including the launch of the “Family and Pets Are Us” page, where employees can share stories about how they stay “on top of their mountain”. Environmental Actions Propel is working towards a more sustainable future. Examples include: • ins talling solar panels on more than 20 of its properties; • par ticipating in metal recycling by collecting metals post-cremation; and • r eplacing or upgrading equipment/ machinery with more energy-efficient technologies, including cremators and fleet. Supporting Families Prior to services being performed, each client family receives an itemised estimate of the funeral service they have requested, for their approval. Propel complies with price transparency requirements on relevant websites and at physical locations, where applicable. Propel respects the wishes of each client family, including those who seek a simple, no service, no attendance funeral as a more affordable option. Grief Support Many of Propel’s locations focus on remembrance and conduct community memorial services at key dates during the year. This enables families to remember loved ones at times such as Christmas, Easter, Anzac Day and Mother’s/Father’s Day. Propel engages with The Grief Centre, which offers grief counselling services and support groups to both client families and employees. Community Support Propel is committed to supporting initiatives that contribute to the wellbeing of the communities its businesses serve. Many of the Company’s operating businesses also support charities, not for profit organisations and social causes in their respective local communities. Examples include: • T wentymans Funeral Services in Thames, New Zealand, established The Place at the Table Trust in 2011, which provides a free Christmas Day lunch for people who may otherwise spend Christmas alone. Supported by approximately 45 volunteers including Twentymans’ staff, the initiative now serves around 250 meals annually and reflects Twentymans’ long- standing commitment to community connection and inclusion; • G ympie Funerals in Queensland is a sponsor of the Heart of Gold International Short Film Festival, an annual community event that celebrates storytelling and connection, supporting cultural engagement and bringing communities together; • C ommunity Funerals in Queensland supports Dying to Know Day in Port Douglas by providing guest speakers and hosting community discussions, helping encourage open conversations about death, grief and end-of-life planning; • F .W. Barnes & Son Funeral Directors in Victoria is a major sponsor of Babies Above Incorporated, a not- for-profit organisation that provides support, resources and community for individuals and families experiencing pregnancy and infant loss; and • Millingt ons Funeral Services in Tasmania has proudly supported Archie’s 100, a uniquely Tasmanian initiative that raises vital funds for paediatric healthcare. Funds raised contribute to essential equipment, research and improved patient care, supporting better health outcomes for Tasmanian children and their families. Industry Engagement Propel’s Australian funeral businesses are all members of Funerals Australia and the majority of its funeral businesses in New Zealand are members of the Funeral Directors Association of New Zealand. Some of its businesses are also members of other associations such as the New Zealand Embalming Association, the National Funeral Directors Association and the Australasian Cemeteries & Crematoria Association. Propel’s ESG journey continues to evolve. Propel looks forward to continuing to play an important role in the communities its businesses serve and continuing to share its ESG journey with its shareholders. As a leading provider of funeral and related essential services, Propel is committed to conducting its business responsibly while creating long-term value for shareholders. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 9
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Board of Directors and Executives Naomi Edwards Chair Naomi is the Chair of Propel and a member of its Audit and Risk Committee and its Remuneration and Nomination Committee. She is a professional company director who has chaired listed ASX companies, industry super funds and not-for-profit organisations. An actuary by training, with an executive background in the financial services industry, Naomi has a strong reputation in the responsible investing industry. Naomi is the current Chair of the Australian Institute of Company Directors (‘AICD’) and former Chair of Accurium. She is a past President of the Actuaries Institute of Australia. Naomi is a non- executive director of TAL and Yarra Funds Management Ltd. She was also a former Deloitte P artner and non-executive director of Australian Ethical Investments, Hunter Hall Limited and Nikko AM. Naomi has a first class honours degree in mathematics from the University of Canterbury and is a Fellow of the Actuaries Institute of Australia and a Fellow of the AICD. Brian Scullin Independent Non-Executive Director and Chair of the Remuneration & Nomination Committee Brian is an Independent Non-Executive Director of Propel, the Chair of its Remuneration & Nomination Committee and a member of its Audit and Risk Committee. He is the former Chairman of Spark Infrastructure Limited, Hastings Funds Management, BT Investment Management Limited, OAK Possability (a not-for-profit organisation in the Tasmanian disability sector) and Macquarie Point Development Corporation. Brian was also a former Non-Executive Director of Dexus Property Group, Tasplan Super and State Super Finance Services. Brian has more than 20 years’ experience in the funds management industry in both Australia and Asia. Following a career in the Federal Government and politics, Brian was appointed the Executive Director of the Association of Superannuation Funds of Australia in 1987. In 1993, he joined Bankers Trust, holding a number of senior positions, including President of Japan Bankers Trust. He was appointed Chief Executive Officer – Asia/Pacific for Deutsche Asset Management in 1999. He retired from that full time position in 2002, although remained a Non-Executive Director of Deutsche Asset Management until June 2007. Brian has held many industry positions including Vice Chair of the Financial Services Council (then known as the Investment & Financial Services Association), a part-time member of the Federal Government’s Financial Reporting Council and a panel member for the Financial Industry Complaints Service. Brian has a Bachelor of Economics from the Australian National University. Jennifer Lang Independent Non-Executive Director and Chair of the Audit & Risk Committee Jennifer is an Independent Non-Executive Director of Propel, the Chair of its Audit & Risk Committee and a member of its Remuneration & Nomination Committee. Jennifer is an actuary and professional company director. She is currently an independent director on the Boards of a number of insurance companies – Pacific Life Reinsurance Australia, Auto & General Insurance Company, Medical Insurance Group Australia and Medical Assurance Society (NZ). Jennifer was a previous Director of Bicycle Network, the Institute of Actuaries of Australia and Deloitte Australia. Prior to her Board career, Jennifer was previously the CFO and Chief Actuary of CommInsure and held a number of other senior executive positions in the insurance and professional services sector. Jennifer was the Actuary of the Year in 2020. Jennifer has a Bachelor of Economics from Macquarie University, is a Fellow of the Actuaries Institute of Australia and a graduate member of the AICD. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 10
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Neil Little Independent Non-Executive Director Neil is an Independent Non-Executive Director of Propel and is a member of its Audit and Risk Committee and its Remuneration and Nomination Committee. He is a fourth generation funeral director, with more than 35 years’ experience in the funeral industry and was previously the Managing Director of the Davis Funerals Group, which was the largest independent group of funeral homes in New Zealand prior to its sale to Propel in 2017. He is a Qualified Embalmer and a Qualified Funeral Director. Neil is a trustee of the Funeral Directors Association of New Zealand (‘FDANZ’) Prepaid Funeral Trust, a past President of the FDANZ and a Director of PFP NZ Limited (Propel’s New Zealand holding company). Lilli Rayner Co-Founder and Co-CEO Lilli co-founded the Company and is its Co-CEO. She commenced her career at Ernst & Young in corporate finance specialising in business valuations and dispute advisory. Lilli then joined Deutsche Asset Management (DB Capital Partners) in June 2006. She was a director of Bledisloe Holdings prior to its sale to InvoCare. She played an important role in the sale of Bledisloe Holdings to InvoCare in 2011 and the IPO of Propel. Lilli was Propel’s Chief Financial Officer for 14 years, prior to becoming its Co-CEO in September 2025. Lilli graduated from the University of Wollongong with a Bachelor of Commerce, majoring in accounting and finance. She is a chartered accountant, holds a Diploma in Investor Relations (‘DipInvRel’) and completed the directors’ course run by the AICD. Fraser Henderson Co-Founder and Co-CEO Fraser co-founded the Company and is its Co-CEO. He commenced his legal career with Ashurst, where he worked in both London and Singapore. In 2003, he moved to Sydney and joined Minter Ellison, becoming a Partner in their Private Equity and Capital Markets team in 2006. He joined Propel Investments in 2008, where he became a director of a number of its investee companies. He co-led a number of transactions for Propel Investments and played an important role in the sale of Bledisloe Holdings to InvoCare in 2011 and the IPO of Propel. Fraser was Propel’s Head of M&A, General Counsel and Company Secretary prior to becoming its Co-CEO in September 2025. Fraser is a graduate of the University of Newcastle-Upon-Tyne (LLB), and of Sydney University (LLM). He has a Diploma in Applied Corporate Governance (‘FCIS’), a DipInvRel and completed the directors’ course run by the AICD. Arash Noaeen Chief Financial Officer Arash Noaeen is the Chief Financial Officer of Propel. He brings over 20 years of experience in senior finance roles across listed and private companies, with a strong track record in corporate finance, M&A and operational leadership. Before joining Propel in 2017, Arash held senior finance roles at several high-growth businesses across the financial services, media and infrastructure sectors. His career has spanned multiple geographic regions, including the United Kingdom, Europe and the USA, where he led strategic planning, financial transformation, and capital management initiatives. Arash was Propel’s Group Financial Controller for 8 years, prior to becoming its Chief Financial Officer in September 2025. Arash graduated from Macquarie University with a Bachelor of Commerce, majoring in accounting and finance. He is a chartered accountant who has completed the directors’ course run by the AICD and is a member of the Finance, Risk and Audit Committee of Funerals Australia. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 11
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Financial Report The Directors of Propel Funeral Partners Limited present the report, together with the consolidated financial report for the year ended 30 June 2026. Directors’ Report 13 Auditor’s Independence Declaration 38 Consolidated Statement of Profit or Loss 39 and Other Comprehensive Income Consolidated Statement of Financial Position 40 Consolidated Statement of Changes in Equity 41 Consolidated Statement of Cash Flows 42 Notes to the Consolidated Financial Statements 43 Consolidated Entity Disclosure Statement 89 Directors’ Declaration 91 Independent Auditor’s Report 92 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 12
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Propel Funeral Partners Limited Directors' report 30 June 2026 7 (ROLLOVER - May TB) The directors of Propel Funeral Partners Limited (ACN 616 909 310) (referred to hereafter as ‘Propel’, the 'Company' or 'parent entity') present their report, together with the financial statements, of the consolidated entity (referred to hereafter as t he 'Group') consisting of the Company and the entities it controlled at the end of, or during, the year ended 30 June 2026 (‘FY26’). Due to rounding, numbers presented in this directors' report may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Background Propel owns and operates businesses, properties, infrastructure and related assets in the death care industry which stand to benefit from the growing and ageing population. As at the date of this directors' report, the Group comprises of long established providers of funeral and related services operating from 213 locations ( 130 owned and 83 leased) across 7 states a nd territories of Australia and in the North and South islands of New Zealand, including 42 cremation facilities and 9 cemeteries. This directors' report includes certain financial measures, such as Operating EBITDA (operating earnings before interest, tax, depreciation and amortisation), Operating EBIT (operating earnings before interest and tax) and Operating NPAT (operating net profit after tax) which are not prescribed by the Australian Accounting Standards ('AAS') and represents the results under AAS adjusted for certain non-operating items, such as acquisition costs and the net financing charge. The directors consider Operating EBITDA, Operating EBIT and Operating NPAT to reflect the core earnings of the Group. These financial measures, along with other measures, have not been subject to specific audit or review procedures by the Company’s auditor, but have been extracted from the accompanying financial statements. Directors The following persons were directors of Propel during the financial year and up to the date of this directors’ report: Name Position Term as Director Non-executive directors: Naomi Edwards Non-executive director - Chair Full year - Appointed Chair on 13 November 2025 Brian Scullin Non-executive director Full year - Retired as Chair on 13 November 2025 Jennifer Lang Non-executive director Full year Neil Little Non-executive director Appointed on 10 October 2025 Peter Dowding Non-executive director Retired on 13 November 2025 Executive directors: Fraser Henderson1 Executive director – Co-CEO Full year Lilli Rayner1 Executive director – Co-CEO Appointed director on 1 September 2025 Former executive directors: Albin Kurti Managing director Retired 31 August 2025 Notes: 1. Effective 1 September 2025: a. Fraser Henderson was appointed as Co-CEO. Mr Henderson was formerly the Head of M&A, General Counsel & Company Secretary. Mr Henderson remains as Company Secretary and executive director; and b. Lilli Rayner was appointed as Co-CEO and an executive director. Ms Rayner was formerly the CFO. Principal activities The principal activities of the Group during the financial year were the provision of death care related services in Australia and New Zealand. Directors’ Report for the year ended 30 June 2026 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 13
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 8 (ROLLOVER - May TB) Dividends Amount per security cents Franked amount per security Total % $’000 Date of payment Year ended 30 June 2026 Interim dividend – 2026 financial year 7.50 100% 10,348 2 April 2026 Final dividend – 2025 financial year 7.00 100% 9,658 2 October 2025 Total 20,006 Year ended 30 June 2025 Interim dividend – 2025 financial year 7.40 100% 10,209 4 April 2025 Final dividend – 2024 financial year 7.20 100% 9,933 3 October 2024 Total 20,142 Dividend not recognised at year end Final dividend – 2026 financial year 6.90 100% 9,520 1 October 2026 On 25 August 2026, the directors declared a fully franked final dividend in connection with the year ended FY26 of 6.9 cents per share. Total dividends declared in connection with FY26 were 14.4 cents per share (FY25: 14.4 cents per share), fully franked which represents approximately 97% of Distributable Earnings (NPAT adjusted for the non-cash net financing charge on pre-paid contracts, acquisition costs and one-off tax adjustments). The financial effect of the final dividend declared after the reporting date is not reflected in the 30 June 2026 financial statements and will be recognised in the subsequent financial period. All dividends referred to above were fully franked at the Company tax rate of 30%. Significant changes in the state of affairs During FY26, the Group experienced the following significant changes in its state of affairs: - completed four acquisitions (refer to note 28 for further details), the consideration for which totalled $5,162,000 (excluding transaction costs and contingent consideration) as follows: • in November 2025, the Group acquired the businesses and assets associated with Jones & Co and Broadway Funeral Home (‘Jones & Co’), funeral services providers operating in and around Tauranga and Matamata, New Zealand; • in December 2025, the Group acquired the business and assets associated with Jacobsen Headstones (‘Jacobsen’), a memorial and headstone manufacturer operating from Auckland, New Zealand; • in May 2026, the Group acquired the business, assets and a freehold property associated with Collingwood Funeral Home (‘Collingwood’), a funeral services provider operating in Rotorua, New Zealand; and • in June 2026, the Group acquired the business, assets and a freehold property associated with Leishman Funeral Services (‘Leishman’), a funeral services provider operating in Balclutha, New Zealand; - announced it had entered into binding conditional legal documentation to acquire the businesses and assets associated with Evans Funeral Services (including Gisborne Tairawhiti Cremation Services) (‘Evans’), a funeral services provider and crematorium operating in and around Gisborne, New Zealand; - acquired seven freehold properties (four of which were previously leased) for aggregate consideration of approximately $7,895,000 (excluding stamp duty); - refinanced its existing debt facilities, extending the maturity date of its $275 million Senior Debt facility to October 2029 (previously October 2027), establishing a $50 million Accordion Facility0F 1, securing improved pricing including a reduction in risk margins, while maintaining existing covenant limits; and - effective from 1 September 2025, co-founders, Fraser Henderson and Lilli Rayner, were appointed Co-CEOs and Arash Noaeen was appointed CFO, following the retirement of fellow co-founder, Albin Kurti, effective 31 August 2025. There were no other significant changes in the state of affairs of the Group during FY26. 1 Drawdown is subject to satisfaction of customary conditions precedent/approvals. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 14
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 9 (ROLLOVER - May TB) Financial and operating review This financial and operating overview summarises the full year results for FY26, and results for the prior year (‘FY25’), unless otherwise stated. Financial Summary: In FY26, the Group reported: - Revenue of $226,621,000, an increase of 0.3% on the prior year; - Operating EBITDA of $55,268,000, 1.6% below the prior year; and - Operating NPAT of $20,731,000, 4.0% below the prior year. The table below summarises the full year results of the Group: FY26 FY25 Statutory Statutory $'000 $'000 Total revenue 226,621 225,833 Gross profit 158,186 157,734 ... margin 69.8% 69.8% Total operating costs (102,918) (101,579) Operating EBITDA 55,268 56,155 ... margin 24.4% 24.9% Depreciation (16,077) (15,740) Operating EBIT 39,191 40,415 ... margin 17.3% 17.9% Net other income and expenses 22 (35) Net interest expense (9,798) (9,661) Operating NPBT 29,415 30,719 Income tax expense (8,685) (9,114) Operating NPAT 20,731 21,604 Operating earnings per share (cps) 1 15.03 15.66 Non-operating items: Acquisition costs (1,318) (962) Net other income and expenses (730) (372) Net financing charge on pre-paid contracts (62) (461) Tax effect of adjustments 1,298 589 Net profit after tax 19,919 20,399 Note: 1. Operating NPAT divided by the weighted average number of ordinary shares. The major income statement line items for the Group down to Operating EBITDA are presented below: FY26 FY25 Statutory Statutory $'000 $'000 Funeral operations 198,436 197,997 Cemetery, crematoria and memorial gardens 24,031 24,201 Other trading revenue 4,155 3,635 Total revenue 226,621 225,833 Cost of sales (68,436) (68,099) Gross profit 158,186 157,734 Employment costs (76,467) (75,661) Occupancy and facility costs (12,244) (11,716) Advertising costs (4,699) (4,531) Motor vehicle costs (3,430) (3,236) Other operating costs (6,077) (6,435) Total operating costs (102,918) (101,579) Operating EBITDA 55,268 56,155 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 15
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 10 (ROLLOVER - May TB) Revenue Revenue increased by 0.3% from $225,833,000 in FY25 to $226,621,000 in FY26, reflecting: - a 0.2% increase in revenue from funeral operations; - a 14.3% increase in other trading revenue; partially offset by - a 0.7% decrease in revenue from cemetery, crematoria and memorial gardens. In FY26, Propel’s funeral volumes totalled 22,854, reflecting: - growth on the prior year of 1.1%, including acquisitions; and - a contraction in comparable funeral volumes of approximately 2%. In FY26, Propel’s Average Revenue Per Funeral1F 2 (‘ARPF’) was $6,673, reflecting: - comparable growth of approximately 2%2F 3 on the prior year; offset by - foreign exchange impacts4; - acquisitions made during and since FY25, which generated below Group Average Revenue Per Funeral; and - funeral mix. - In FY26, the Group generated 47% of its revenue from metropolitan areas, compared to 48% in the prior year, primarily due to the impact of recent acquisitions. Gross profit margin The gross profit margin was 69.8%, in line with the prior year. The FY26 comparable gross margin was 69.9%, 10 basis points above the prior year. Operating costs and Operating EBITDA Operating costs increased by $1,339,000 on the prior year, as a result of: - the full and part period impact of acquisitions completed during and since FY25; - - inflationary impacts; partially offset by foreign exchange impacts. Disciplined cost control has resulted in comparable operating costs being 0.7% below FY25. FY26 Operating EBITDA was $55,268,000, 1.6% below the prior year, primarily reflecting a contraction in comparable funeral volumes and foreign exchange impacts, partially mitigated by cont ributions from acquisitions, disciplined cost control and a stable gross margin. Depreciation, interest and other income and expenses Depreciation increased from $15,740,000 in FY25 to $16,077,000 in FY26, which primarily related to business and property acquisitions completed during FY25 and FY26. Net interest expense (excluding AASB 16) was $8,942,000, $340,000 higher than the prior year (FY25: $8,602,000), driven by higher drawn debt to fund acquisitions and property purchases, partially offset by a lower effective interest rate. Acquisition costs totalled $1,318,000 (FY25: $962,000). Net other (income) and expenses of $730,000 largely related to net insurance recoveries, net loss on disposal of assets, release of contingent consideration, net foreign exchange losses and expenses primarily relating to the administration of the Group’s pre-paid contracts. Pre-paid contracts Funds held in connection with pre -paid contracts are largely held with third party friendly societies who invest the funds in cash and fixed interest products (more than 90% of funds held) and other asset classes (less than 10% of funds held). In FY26, pre-paid contracts that turned at need accounted for less than 10% of Propel’s funeral volumes (FY25: less than 10%). In accordance with AASB 15, ‘Revenue from Contracts with Customers’, Propel recognises investment returns generated on funds held for pre-paid contracts net of a non-cash financing charge. The net financing charge is disclosed below Operating EBITDA and Operating NPAT. 2 Revenue from funeral operations excluding disbursements and delivered pre-paid funeral impacts divided by the number of funerals performed in the relevant period. 3 NZD/AUD exchange rate constant with the prior year. 4 Verses the prior year. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 16
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 11 (ROLLOVER - May TB) Impairment Following a review of the carrying value of assets, no impairment was deemed necessary in FY26 (FY25: Nil). Income tax expense In FY26, income tax expense was $7,387,000 (FY25: $8,526,000). The adjusted effective tax rate was 29.5% (FY25: 29.6%). Cash flow highlights The cash flows for the Group are presented below: FY26 FY25 Statutory Statutory $'000 $'000 Receipts from customers (inc GST) 251,069 250,473 Payments to suppliers and employees (inc GST) (196,206) (194,050) 54,863 56,423 Income taxes paid (6,712) (6,627) Interest paid (10,474) (10,290) Interest received 328 482 Net cash provided by operating activities 38,004 39,988 Payment for purchase of business, net of cash acquired (7,571) (15,874) Net payments for property, plant and equipment (24,455) (25,354) Other investing cash flows (125) (64) Net cash used by investing activities (32,151) (41,292) Net proceeds from borrowings 22,724 27,830 Dividends paid (20,006) (20,142) Other financing cash flows (4,778) (4,597) Net cash provided by financing activities (2,060) 3,091 Net increase/(decrease) in cash during the year 3,793 1,787 Cash at the beginning of the year 9,046 7,250 Exchange rate effects (307) 9 Cash at the end of the year 12,532 9,046 Cash flow conversion was 100.7% in FY26, compared to 102.2% achieved in the prior year as shown in the table below: FY26 FY25 $'000 $'000 Operating EBITDA 55,268 56,155 Net cash provided by operating activities 38,004 39,988 Add: Interest paid 10,474 10,290 Add: Income tax paid 6,712 6,627 Add: Executive incentive timing difference 800 949 Less: Interest received (328) (482) Ungeared, tax free, operating cash flow (adjusted) 55,662 57,371 Cash flow conversion1 100.7% 102.2% Note: 1 The percentage of Operating EBITDA converted into ungeared, pre-tax operating cash flow, adjusted for cash flow timing differences relating to executive bonuses. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 17
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 12 (ROLLOVER - May TB) Cash flows used in investing activities included capital expenditure related to: FY26 FY25 $'000 $'000 Maintenance 10,440 9,514 Growth 8,564 4,936 Total capital expenditure 19,004 14,451 In FY26, maintenance capital expenditure amounted to 4.6% of revenue (FY25: 4.2%), largely in line with depreciation on property, plant and equipment. Capital management As at 30 June 2026, the Group had drawn down $163,712,000 of its $3 25,000,000 senior debt facilities (including the $50m Accordion Facility), compared to $141,053,000 as at 30 June 2025. The increase in drawn debt largely relates to funding the FY26 business and property acquisitions. As at 30 June 2026, the Group reported cash and cash equivalents of $12,532,000 (FY25: $9,046,000) and net debt4F 5 of $151,180,000 (FY25: $132,007,000). As at 30 June 2026, the Group’s gearing ratio 5F 6 was 30.9%. Financial covenant ratios on the senior debt facilities comprise a net leverage ratio which must be no greater than 5.0x6F 7 and a fixed charge cover ratio which must be greater than 1.75x. Both ratios were comfortably satisfied as at 30 June 2026, being 2.2x7 (FY25: 2.1x) and 3.8x (FY25: 3.9x) respectively. As at the date of this directors’ report, the Group is well funded to continue its acquisition led growth strategy with approximately $169,105,0007F 8 of available funding capacity (including the $50m Accordion Facility). Matters subsequent to the end of the financial year On 25 August 2026, the directors declared a fully franked dividend of 6.9 cents per ordinary share. The dividend will be paid on 1 October 2026. This equates to an estimated total distribution of $9,520,000. The financial effect of the dividend declared after the reporting date is not reflected in the financial statements for FY26 and will be recognised in the next year. Subsequent to year end, the Group completed the previously announced acquisition of Evans. Apart from the events disclosed above, no other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Likely developments and expected results of operations In terms of the outlook, Propel expects to benefit from: - favourable demographics in Australia and New Zealand; - its strong funding position; and - acquisitions completed to date and other potential future acquisitions in what remains a highly fragmented industry in both Australia and New Zealand (although timing is uncertain). In the month of July 2026, Propel generated Revenue of ~$21,500,0009, benefiting from: - comparable Average Revenue Per Funeral growth exceeding 3%10 (above the Company’s long term compounded annual growth rate) - resilient funerals volumes, despite a: - benign winter flu season11 (lowest recorded in 5 years); and - material contraction in industry death volumes 12 (expected to be temporary given volumes fluctuate over short time horizons). 5 Drawn senior debt less cash and cash equivalents. 6 Net debt of $151.2 million divided by net debt plus total equity of $337.5 million. 7 The net leverage ratio for covenant purposes includes adjustments – for example: (1) the Group’s $40m working capital facility, previously $25m, is excluded from net debt; and (2) Operating EBITDA includes the annualised impact of acquisitions and is calculated on a pre AASB 16 basis. 8 Cash at bank and undrawn debt and the $50m Accordion Facility, as at 30 June 2026, less the cash required to fund the Evans acquisition (excluding transaction costs). 9 Including a $0.6 million unfavourable exchange impact in the month of July 2026 (versus the PCP). 10 NZD/AUD exchange rate constant with PCP. 11 Source Australian Government Department of Health – National Notifiable Disease Surveillance System. 12 Total deaths in QLD, NSW, VIC and TAS (which accounts for ~80% of all deaths in Australia) in the month of July 2026 versus the PCP (Source: Births, Deaths and Marriages). ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 18
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 13 (DRAFT 1) Environmental regulation The Group's operations are subject to environmental regulation under the laws in the jurisdictions in which it operates. The directors are not aware of any environmental issues or claims which have had, or are likely to have, a material impact on the Group’s business. Sustainability Reporting AASB S2 ‘Climate-related Disclosures’ sets out disclosure requirements for climate-related risks and opportunities, including governance, strategy, risk management, metrics and targets. AASB S2 applies to entities required to prepare and lodge a financial report with ASIC under Chapter 2M and is effective for annual reporting periods beginning on or after 1 January 2025 and will be gradually phased in for different entities based on size thresholds: - Group 1 entities (meets two of the following: consol revenue of at least $500 million, consol gross assets of at least $1 billion and at least 500 employees) are required to report in Dec 2025/June 2026; - Group 2 entities (meets two of the following: consol rev of at least $200 million, consol gross assets of at least $500 million and at least 250 employees) are required to report in Dec 2027/June 2027; and - Group 3 entities (meets two of the following: consol rev of at least $50 million, consol gross assets of at least $25 million and at least 100 employees) are required to report in Dec 2028/June 2028. The board considers Propel to be within Group 2 and will report the disclosures in its 2027 annual report. Material business risks The Company maintains a risk management framework which includes a risk register, which is tabled at scheduled meetings of the Company’s Audit and Risk Committee. The most significant risk to the Company’s annual financial performance is the number of deaths occurring during that year in the markets in which the Group operates. However, there are other risks, and the key risks that could adversely impact the Group’s annual financial performance and growth potential, including mitigating factors, are summarised below: Risk Description Risk Management Mitigation Number of deaths - Change in mortality rates over a sustained period. - Movement of people to areas where the Group does not have operations. - Data monitoring and analysis. - Propel has a diversified network, currently operating from all states of Australia as well as the Australian Capital Territory and the North and South Islands of New Zealand. - Propel’s growth strategy involves expanding into locations where it does not currently operate. - Management of operating costs. Competitive market and changes to market trends - Risk from existing and new market entrants. - Competitors may offer/develop alternative products/services, or alternative advertising initiatives. - Client focus on service delivery. - Leverage existing brands in local markets with strategies to maintain and/or expand market share locally. - Focus on local community engagement and relationship to maintain and/or improve competitive advantage. Funding - Insufficient funding to capitalise on growth initiatives, including acquisitions. - Long established relationship with the Company’s debt funding partner, Westpac. - As at 30 June 2026, the Group had a net leverage ratio of 2.2x and material debt covenant headroom. - As at the date of the directors’ report, the Group has $169.1 million of available funding capacity, including the $50m Accordion Facility. - As an ASX listed entity, the Company can access equity markets from time to time, as demonstrated by the equity raisings completed in prior years. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 19
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2025 14 (DRAFT 1) Material business risks (continued) Risk Description Risk Management Mitigation Slow down in acquisitions - Unable to agree terms with potential vendors. - Competing bidders. - Propel remains focused on its core strategy of acquiring assets and infrastructure that operate in the death care indu stry in Australia and New Zealand. - Since its IPO in November 2017, Propel has committed approxi mately $314 million1 on acquisitions and continues to explore other potential acquisitions, however, the timing asso ciated with any future acquisitions is uncertain. - The Australia and New Zealand funeral industries remain highl y fragmented. Investment risk – acquisitions - Propel’s acquisition led growth strategy is not successfully ex ecuted or fails to deliver the ex pected returns. - Deficiencies in due diligence. - Assume unknown liabilities. - No guarantee of continued succes sful performance of acquired businesses. - Experienced management team that has been active in completing acquisitions in the death care industry since 2005. - Balanc e sheet management. - General preference to acquire assets, not shares (theref ore, only assume known liabilities). - As at 30 June 2026, Propel has completed 62 acquisitions, thus e xperienced at identifying potential performance issue s. - Management has a track record of actively monitoring post ac quisition performance. Inflation - Increasing costs of goods and services. - Pass on price increases where possible. - Prudent management of costs. Loss of key brand reputation/customer relationships - Failure to maintain brand reputation in market. - Failure to react to changes in custome rs’ needs/trends. - Products and/or services do not ke ep pace with developments in mar ket needs or technological advan cements. - Client family/media complaints. - Close monitoring of market developments. - Do not operate a network of national brands, with each business managed and operated day to day by members of the local community. - Businesses support local initiatives. Supply chain - Unable to supply products to deliver services to families. - Not overly reliant on one single supplier for any individual product or item. Lease arrangements - Existing lease agreements are not renewed and/or terms cannot be agr eed with new locations. - Active monitoring of leases approaching renewal dates. - Pro-active review of all lease contracts. - As at 30 June 2026, the Group owned approximately 61% of the properties from which it operates. Natural disaster, health crises - Pandemic. - Fire, floods, etc. - The Group responded promptly and strategically to the impacts of COVID-19. - Geographic diversity of the Group’s network would make it unlikely that a natural disaster would impact performance materiall y. Note: 1. Upfront cash and equity consideration paid. Excludes properties purchased subsequent to completion of the acquisitions and other properties purchased totalling in aggregate, $52.0 million (excluding stamp duty). ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 20
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2025 15 (DRAFT 1) Material business risks (continued) Risk Description Risk Management Mitigation Regulatory compliance - Australian Competition and Consumer Act 2010 (Cth) and other related commonwealth and state legislation. - Environmental regulations risks. - Perpetual care. - External advice received. - Culture of compliance. Investment risk - pre- paid contracts - Escalation in service/product costs. - Volatility of investment returns on pre-paid funds under management fluctuation. - The overwhelming majority of funds held by/for the Group in relation to pre-paid funeral contracts are held in cash or fixed income, therefore, risk of volatility of investment returns is low. - Pre-paid contracts typically remain profitable in times of rising costs, versus the investment return generated. However, the profit margin may be lower than an at need funeral, all other things being equal. - Pre-paid bonds, where the client family makes a contribution to their funeral costs and the funeral director is not at risk of rising costs, are becoming more popular across the Company’s network. Meeting financial obligations - Unable to meet its financial obligations. - Regular monitoring by management and the Board. - Six monthly reporting to its debt funding partner, Westpac, on covenant compliance. - Board approved annual budget, which is provided to its funding partner, Westpac. - Regular monitoring and reporting on debtors, with historically low number of bad debts. - As at 30 June 2026: - net leverage ratio of 2.2x; and - material headroom to covenants. Interest rates - Higher interest rates may impact profitability. - The Group may, from time to time, use interest rate swaps to partially hedge its exposure to interest rate risk. People - Loss of key executives. - Loss of key individuals in operating businesses with consequential material business disruption. - Appropriate incentives in place for key individuals, including short and long term incentives in place for key management personnel. Measurable objectives The Company respects and values diversity in the board and workforce at all levels as reflected in the diversity policy which is set out in the Company’s Corporate Governance Charter, a copy of which is available on its website. For FY26, the Company had a measurable objective in respect of gender diversity on the board and the executives (‘Key Management Personnel’ or ‘KMP’) of 30%. This measurable objective was achieved by the Company. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 21
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2025 16 (DRAFT 1) Information on directors Name: Naomi Edwards (appointed Chair on 13 November 2025) Title: Independent Non-Executive Chair Qualifications: Naomi has a first class honours degree in mathematics from the University of Canterbury and is a Fellow of t he Actuaries Institute of Australia and a Fellow of the Australian Institute of Company Directors (‘AICD’). Experience and expertise: Naomi is the Chair of Propel and a member of its Audit and Risk Committee and its Remuneration and Nomination Committee. She is a professional company director who has chaired listed ASX companies, industry super funds and not-for-profit organisations. An actuary by training, with an executive background in the financial services industry, Naomi has a strong reputation in the responsible investing industry. Naomi is the current Chair of the AICD and former Chair of Accurium, She is a past President of the Actuaries Institute of Australia . Naomi is a non -executive director of TAL and Yarra Funds Management Ltd. She was also a former Deloitte Partner and non-executive director of Australian Ethical Investments, Hunter Hall Limited and Nikko AM. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Chair of the Board Member of the Remuneration and Nomination Committee Member of the Audit and Risk Committee Interests in shares: 54,280 ordinary shares held directly Name: Brian Scullin (retired as Chair on 13 November 2025) Title: Independent Non-Executive Director Qualifications: Brian has a Bachelor of Economics from the Australian National University. Experience and expertise: Brian is an Independent Non-Executive Director of Propel, the Chair of its Remuneration & Nomination Committee and a member of its Audit & Risk Committee. He is the former Chairman of Spark Infrastructure Limited, Hastings Funds Management, BT Investment Management Limited, OAK Possability (a not-for-profit organisation in the Tasmanian disability sector) and Macquarie Point Development Corporation. Brian was also a former Non -Executive Director of Dexus Property Group, Tasplan Super and State Super Finance Services. Brian has more than 20 years’ experience in the funds management industry in both Australia and Asia. Following a career in the Federal Government and politics, Brian was appointed the Executive Director of the Association of Superannuation Funds of Australia in 1987. In 1993, he joined Bankers Trust, holding a number of senior positions, including President of Japan Bankers Trust. He was appointed Chief Executive Officer – Asia/Pacific for Deutsche Asset Management in 1999. He retired from that full time position in 2002, although remained a Non -Executive Director of Deutsche Asset Management until June 2007. Brian has held many i ndustry positions including Vice Chair of the Financial Services Council (then known as the Investment & Financial Services Association), a part -time member of the Federal Government’s Financial Reporting Council and a panel member for the Financial Industry Complaints Service. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Chair of the Remuneration and Nomination Committee Member of the Audit and Risk Committee Interests in shares: 364,936 ordinary shares held indirectly ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 22
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2025 17 (DRAFT 1) Name: Jennifer Lang Title: Independent Non-Executive Director Qualifications: Jennifer has a Bachelor of Economics from Macquarie University, is a Fellow of the Actuaries Institute of Australia and a graduate member of the AICD. Experience and expertise: Jennifer is an Independent Non -Executive Director of Propel, the Chair of its Audit & Risk Committee and a member of its Remuneration & Nomination Committee. Jennifer is an actuary and professional company directo r. She is currently an independent director on the Boards of a number of insurance companies - Pacific Life Reinsurance Australia, Auto & General Insurance Company, Medical Insurance Group Australia and Medical Assurance Society (NZ). Jennifer was a previous Director of Bicycle Network, the Institute of Actuaries of Australia and Deloitte Australia. Prior to her Board career, Jennifer was previously the CFO and Chief Actuary of CommInsure and held a number of other senior executive positions in the insurance and professional services sector. Jennifer was the Actuary of the Year in 2020. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Chair of the Audit and Risk Committee Member of the Remuneration and Nomination Committee Interests in shares: 20,825 ordinary shares held directly Name: Neil Little (appointed on 10 October 2025) Title: Independent Non-Executive Director Qualifications: He is a Qualified Embalmer and a Qualified Funeral Director. Experience and expertise: Neil is an Independent Non -Executive Director of Propel and is a member of its Audit and Risk Committee and its Remuneration and Nomination Committee . He is a fourth generation funeral director, with more than 35 years’ experience in the funeral industry and was previously the Managing Director of the Davis Funerals Group, which was the largest independent group of funeral homes in New Zealand prior to its sale to Propel in 2017. Neil is a trustee of the Funeral Directors Association of New Zealand (‘FDANZ’) Prepaid Funeral Trust, a past President of the FDANZ and a Director of PFP NZ Limited (Propel’s NZ holding company). Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Member of the Audit and Risk Committee Member of the Remuneration and Nomination Committee Interests in shares: 578,282 ordinary shares held indirectly Name: Lilli Rayner (appointed on 1 September 2025) Title: Executive Director, Co-Founder and Co-CEO Qualifications: Lilli graduated from the University of Wollongong with a Bachelor of Commerce, majoring in accounting and finance. She is a chartered accountant, holds a Diploma in Investor Relations (‘DipInvRel’) and completed the directors’ course run by the AICD. Experience and expertise: Lilli co-founded the Company and is its Co -CEO. She commenced her career at Ernst & Young in corporate finance, specialising in business valuations and dispute advisory. Lilli then joined Deutsche Asset Management (DB Capital Partners) in June 2006. She was a director of Bledisloe Holdings prior to its sale to InvoCare. S he played an important role in the sale of Bledisloe Holdings to InvoCare in 2011 and the IPO of Propel. Lilli was the Propel’s Chief Financial Officer for 14 years, prior to becoming its Co-CEO in September 2025. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: None Interests in shares: 753,629 ordinary shares held directly Interests in performance rights: 192,403 performance rights over ordinary shares ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 23
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2025 18 (DRAFT 1) Name: Fraser Henderson Title: Executive Director, Co-Founder and Co-CEO Qualifications: Fraser is a graduate of the University of Newcastle -Upon-Tyne (LLB), and of Sydney University (LLM). He has a Diploma in Applied Corporate Governance (‘FCIS’) , a DipInvRel and completed the directors’ course run by the AICD. Experience and expertise: Fraser co-founded the Company and is its Co -CEO. He commenced his legal care er with Ashurst, where he worked in both London and Singapore. In 2003, he moved to Sydney and joined Minter Ellison, becoming a Partner in their Private Equity and Capital Markets team in 2006. He joined Prop el Investments in 2008, where he became a director of a number of its investee companies. He co -led a number of transactions for Propel Investments and played an important role in the sale of Bledisloe Holdings to InvoCare in 2011 and the IPO of Propel. Fraser was Propel’s Head of M&A, General Counsel and Company Secretary prior to becoming its Co -CEO in September 2025. Fraser continues to retain his role as Company Secretary. Other current directorships: None Former directorships (last 3 years): None Special responsibilities: Company Secretary Interests in shares: 7,264,582 ordinary shares held directly and indirectly Interests in performance rights: 206,643 performance rights over ordinary shares 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Company secretary The Company Secretary is Fraser Henderson. For his qualifications and experience, refer to 'Information on directors' section above. Meetings of directors The number of meetings of the Company's Board and each board committee held during FY26, and the number of meetings attended by each director were as follows: Board Audit and Risk Committee1 Remuneration and Nomination Committee1 Attended Held Attended Held Attended Held Naomi Edwards 8 8 5 5 5 5 Brian Scullin 8 8 5 5 5 5 Jennifer Lang 8 8 5 5 5 5 Neil Little2 6 6 4 4 4 4 Peter Dowding2 2 2 1 1 1 1 Fraser Henderson 8 8 - - - - Lilli Rayner2 6 6 - - - - Albin Kurti2 2 2 - - - - Note: 1. Committees consist entirely of the independent non-ex ecutive directors. 2. Lilli Rayner was appointed as a director on 1 September 2025 and Neil Little was appointed as a director on 10 October 202 5. Albin Kurti retired as a director on 31 August 2025 and Peter Dowding retired as a director on 13 November 2025. The number of meetings shown as ‘held’ and ‘attended’ reflects the meetings held during each director’s tenure as a member of the Board or Committee in FY26. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 24
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 19 (DRAFT 1) Remuneration Report (audited) This remuneration report details the nature and amount of remuneration paid to key management personnel (‘KMP’) of Propel Funeral Partners Limited (‘Propel’ or ‘the Company’) and the entities it controlled (‘the Group’) during the year ended 30 June 2026 (‘FY26’), in accordance with the requirements of the Corporations Act 2001 (‘Corporations Act’) and its regulations. The remuneration report is set out in the following sections: 1. Remuneration essentials 2. Non-executive directors’ remuneration 3. Executive remuneration 4. Statutory remuneration disclosures 5. Additional information and disclosures 1. Remuneration essentials KMP covered by the report For the purposes of this remuneration report, KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, being the persons named in the table below: Name Position Term as KMP Non-executive directors: Naomi Edwards Non-executive director - Chair Full year - Appointed Chair on 13 November 2025 Brian Scullin Non-executive director Full year - Retired as Chair on 13 November 2025 Jennifer Lang Non-executive director Full year Neil Little Non-executive director Appointed on 10 October 2025 Peter Dowding Non-executive director Retired on 13 November 2025 Executive KMP: Fraser Henderson1 Executive director – Co-CEO Full year Lilli Rayner1 Executive director – Co-CEO Full year Arash Noaeen1 Chief Financial Officer (CFO) Appointed 1 September 2025 Former Executive KMP: Albin Kurti Managing director Retired 31 August 2025 Notes: 1. Effective 1 September 2025: a. Fraser Henderson was appointed as Co-CEO. Mr Henderson was formerly the Head of M&A, General Counsel & Company Secretary. Mr Henderson remains as Company Secretary and executive director. b. Lilli Rayner was appointed as Co-CEO and an executive director. Ms Rayner was formerly the CFO; and c. Arash Noaeen was appointed as CFO. Mr Noaeen was formerly Group Financial Controller. Principles used to determine the nature and amount of remuneration Propel aims to attract, motivate and retain high performing and high quality personnel. The objective of the Group’s senior executive remuneration framework is to reward its senior executives for the achievement of the Company’s strategic objectives and shareholder value creation. The Company’s Remuneration and Nomination Committee (‘RNC’), which is made up of four independent non-executive directors, is responsible for determining and reviewing remuneration arrangements for the Company’s directors and senior executives. The RNC reviews and determines the remuneration structure for the executive KMP periodically to e nsure it remains aligned to business requirements and the remuneration objectives. The RNC has structured a remuneration framework for the executive KMP which aims to achieve various objectives, including being: - linked to performance; - aligned to shareholder value creation; - transparent; - competitive and reasonable; and - acceptable to shareholders. In accordance with best practice corporate governance, the structure of non-executive director and executive KMP remuneration is separate. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 25
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 20 (DRAFT 1) Use of remuneration consultants The Company did not engage a remuneration consultant during the financial year but did conduct a market benchmarking exercise of similar (by market capitalisation) listed companies in Australia. Voting and comments made at the Company's 2025 Annual General Meeting ('AGM') At the 2025 AGM, 98.95% of the votes received , supported the adoption of the remuneration report for the year ended 30 June 2025. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. 2. Non -executive directors' remuneration Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors receive a director’s fee and additional fees for chairing committees. Non-executive directors’ fees are reviewed periodically by the RNC. In conducting such review, the RNC may, from time to time, receive advice from independent remuneration consultants to ensure non -executive directors’ fees are appropriate and in lin e with market. Non -executive directors do not receive share options or other incentives. Non-executive directors may be paid such additional or special remuneration (out of the funds of the Company) as the Board may determine is appropriate where a director performs extra work or services which are outside the scope of ordinary duties of a director of the Company or a subsidiary of the Company. No fees of this nature were paid in FY26. ASX listing rules require the aggregate non-executive directors’ remuneration be determined periodically by a general meeting. The most recent determination was at the Company’s AGM held in 2021, where the Company’s shareholders approved a maximum annual aggregate remuneration of $750,000 per annum. The total paid in FY26 was $467,621 (FY25: $435,000) as set out in section 4 below. 3. Executive KMP remuneration The Group aims to reward the executive KMP based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components. The executive KMP remuneration and reward framework for FY26 had three components: Remuneration Purpose Alignment Instrument Framework Total Fixed Remuneration (‘TFR’) Attract and retain Propel’s executive KMPs Benchmarked with listed companies of comparable market capitalisation Base salary, superannuation and non-monetary benefits (if applicable) Eligible to participate in an STI plan Reward for the achievement of financial and non-financial outcomes that support Propel’s strategy Measured via a unique balanced scorecard for each executive Subject to the shareholding hurdle1 being met, 100% in cash otherwise 50% in cash and 50% deferred by one year in cash or shares (with the form of payment at the election of the Board) Eligible to participate in an LTI plan Rewards performance that creates long term shareholder value Earnings per share measured over a three year performance period Performance rights Note: 1. If an executive KMP holds Propel shares with a value of at least 100% of the Relevant TFR (‘Shareholding Hurdle’), that execu tive will receive 100% of any STI payable, in cash, on or before 31 August each year. If an executive KMP does not meet the Shareholding Hurdle, that executive will receive 50% of any STI payable, in cash, on or before 31 August each year and, 50% will be deferred (i.e. on or before 31 August in the following year) by one year and, at the election of the board will be paid in cash or Propel shares , assuming the executive KMP’s employment had not been terminated for cause in the meantime. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 26
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 21 (DRAFT 1) The combination of these three components comprises the executive KMP’s total remuneration and are described in more detail below. The executive KMP’s total remuneration is revie wed periodically by the RNC based on individual performance, the overall performance of the Group and comparable market remunerations. TFR The current TFR for the executive KMP is set out below: TFR ($) 2026 2025 Executive KMP1 Fraser Henderson 824,000 680,000 Lilli Rayner 824,000 580,000 Arash Noaeen 412,000 - Former Executive KMP Albin Kurti - 950,000 2,060,000 2,210,000 Note: 1. The current Executive KMP were appointed to their roles on 1 September 2025. The TFR has been disclosed on an annualised basis. STI Plan Purpose STI is awarded for achievement of annual financial and non-financial performance conditions. Participants Executive KMP. Percentage of TFR Maximum STI opportunity as a percentage of TFR is 75% for the Co-CEOs and 50% for the CFO. Target STI 60% of the maximum. Performance period 1 July to 30 June (annual). Performance conditions Subject to financial (60%) and non-financial (40%) performance conditions. The financial performance condition is based on actual Operating EBITDA1 versus target Operating EBITDA, set by the Board, for the relevant financial year, adopting the financial performance scale below, on a pro-rata basis. The non-financial performance conditions are determined by the RNC each year and are set out in a balanced scorecard which is unique to each executive position. Details, by role, of the executive KMP’s strategic/personal metrics, weighting and outcome for FY26 are set out below. Financial performance scale Operating EBITDA versus target STI outcome Below 90% Nil 90% to 100% 20% to 60% (pro-rated) 100% to 110% 60% to 100% (pro-rated) 110% or greater 100% Measurement of performance conditions Following the end of the financial year, the RNC assesses the performance of each executive KMP against the performance conditions set and determines the actual level of award for that executive KMP. The Board believes this method is the most efficient and results in the most fair outcome. Instrument/Payment 100% in cash unless the executive KMP does not meet the Shareholding Hurdle. Note: 1. Operating EBITDA means the Group’s operating earnings before interest, tax, depreciation, amortisation, accruals relating to the executives ' STIs and LTIs and certain non-operating items, as determined by the Board. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 27
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 22 (DRAFT 1) LTI Plan Purpose LTI is awarded for performance metrics aimed at driving long term shareholder value. Participants Executive KMP. Percentage of TFR Maximum LTI opportunity as a percentage of TFR is 75% for the Co-CEOs and 50% for the CFO. Target LTI 60% of the maximum. Performance period LTI grants have a three-year performance period which commences on 1 July of the year they are granted. For example, the performance period in connection with FY26 relates to the period from 1 July 2025 to 30 June 2028. Performance conditions 100% financial performance condition currently being Adjusted EPS1 CAGR over a three year period, adopting the financial performance scale below. The Board is currently of the view that an EPS metric best aligns executive performance outcomes with shareholder value. The Board reviews the LTI plan (and the performance conditions) from time to time. Financial performance scale Adjusted EPS CAGR LTI outcome Below 6% Nil 6% to 8% 20% to 60% (pro-rated) 8% to 10% 60% to 100% (pro-rated) 10% or greater 100% Measurement of performance conditions To measure the Adjusted EPS CAGR performance condition, financial results are extracted by reference to the Company’s audited financial statements. The use of financial statements ensures the integrity of the measure and alignment with the financial performance of the Company. Adjusted EPS CAGR is calculated having regard to shares on issue and Operating NPAT2, which measures underlying profit from the Group’s ongoing operations, adjusted where the Board considers it appropriate. Instrument/payment The executive KMP will be granted performance rights over Propel’s ordinary shares (converted on a one for one basis). Performance rights are issued for no consideration and no amount is payable upon vesting. Performance rights do not carry voting rights. The executive KMP will be entitled to receive dividends declared and paid by Propel between the date of vesting and the date of exercise, settled by way of the issuance of additional Propel shares or in cash, at the election of the Board. The number of performance rights allocated to each executive KMP is based on the percentage of TFR relevant to each executive divided by the VWAP3 of Propel Shares for the three months ending on the last business day of the prior financial year. The LTI previously granted to Ms Rayner and Mr Henderson in FY24, if achieved, was to be paid in cash on or around 31 August 2026, in accordance with the relevant executive service agreements. It should be noted that the performance conditions for the FY24 grant were not met as at 30 June 2026 and, therefore, no LTI is payable to Ms Rayner or Mr Henderson in connection with the FY24 grant. Refer below for further details. Change of control On the date immediately prior (or earlier if determined by the Company, acting reasonably), 100% of the performance rights granted to the executives will vest and 100% of the relevant TFR will be payable. Notes: 1. Adj usted EPS means the Group ’s Operating NPAT divided by the weighted average number of shares on issue in the Company. 2. O perating NPAT means the Group’s net profit after tax, adjusted for certain non-operating items, as determined by the Board. 3. VWAP means volume weighted average price. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 28
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 23 (DRAFT 1) The target and maximum remuneration mix for each executive KMP position for FY26 is illustrated below: Group’s performance and link to remuneration As set out above, a significant element of the STI and LTI to which the executive KMPs are eligible are dependent on annual and long term financial measures. Financial STI awarded and forfeited during the financial year In respect of FY26, the actu al Operating EBITDA was approximately 89% of the target Operating EBITDA, resulting in no financial STI being payable. Operating EBITDA verses Target Financial STI Outcome Non-financial STI awarded and forfeited during the financial year The tables below set out the balanced scorecards, including the outcome for each strategic/personal metric for each executive KMP role. Balanced scorecard – Head of M&A, General Counsel & Company Secretary, Fraser Henderson: 1 July – 31 August 2025 (2 months) Strategic/ Personal Metric Key Performance Indicator Weighting (%) FY26 Outcome M&A Activity Acquisition pipeline progression 50 Achieved M&A Activity Capital committed (two-year average) 50 Not Achieved Total 100 50 Balanced scorecard – CFO, Lilli Rayner: 1 July – 31 August 2025 (2 months) Strategic/ Personal Metric Key Performance Indicator Weighting (%) FY26 Outcome Cash Generation Cash flow conversion 25 Achieved Capex Maintenance capex as a percentage of revenue 25 Achieved M&A Activity Capital committed (two-year average) 25 Not Achieved People Finance employee voluntary turnover 25 Achieved Total 100 75 53% 40% 24% 30% 24% 30% Target remuneration Maximum remuneration Co-CEO TFR STI LTI 63% 50% 19% 25% 19% 25% Target remuneration Maximum remuneration CFO TFR STI LTI 90% 110% 100% 20% 100% 100% 60% 89% 0% ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 29
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 24 (DRAFT 1) Balanced scorecard – Co-CEOs, Lilli Rayner and Fraser Henderson: 1 September – 30 June 2026 (10 months) Strategic/ Personal Metric Key Performance Indicator Weighting (%) FY26 Outcome People Employee voluntary turnover 10 Achieved Safety Workplace Health & Safety Program (AU): implement 5 Achieved Safety Workplace Health & Safety Program (NZ): roll out 5 Achieved Market Share Growth in market share over the prior calendar year 10 Achieved M&A Activity Capital committed (12 months) 10 Not Achieved M&A Activity Acquisition pipeline progression 10 Achieved Stakeholder Feedback Positive stakeholder feedback 15 Achieved Leadership Transition Maintained strong engagement through CEO transition 15 Achieved Capital Planning Dividend expectation met 5 Achieved Capital Planning Strong balance sheet and capital position 5 Achieved Customer / Client Family Feedback Percentage of client family complaints 10 Achieved Total 100 90 Ba lanced scorecard – CFO Arash Noaeen: 1 September – 30 June 2026 (10 months) Strategic/ Personal Metric Key Performance Indicator Weighting (%) FY26 Outcome Cash Generation Cash flow conversion 20 Achieved Capex Maintenance capex as a percentage of revenue 20 Achieved M&A Activity Capital committed (12 months) 10 Not Achieved M&A Activity Acquisition pipeline 10 Achieved People Finance employee voluntary turnover 20 Achieved Leadership Transition Maintained strong engagement through leadership transition 10 Achieved Capital Planning Dividend expectation met 5 Achieved Capital Planning Strong balance sheet and capital position 5 Achieved Total 100 90 A summary of the STI (financial and non-financial) outcomes payable to the executive KMPs is outlined in the table below: Maximum poten tial STI award STI awarded Percentage of maximum STI award granted Percentage of maximum STI award forfeited Executive KMP: Year ($) ($) % % Fraser Henderson1 2026 579,203 198,241 34% 66% 2025 374,000 211,400 57% 43% Lilli Rayner1 2026 569,762 201,829 35% 65% 2025 319,000 180,311 57% 43% Arash Noaeen2 2026 171,667 61,800 36% 64% 2025 - - - - Notes: 1. The STI for Fraser Henderson and Lilli Rayner are for the 12 month period ending 30 June 2026 and have been pro-rated to reflect 10 months as Co - CEOs and 2 months as Head of M&A and General Counsel and CFO respectively. 2. The STI for Arash Noaeen was pro-rated from his commencement date as CFO of 1 September 2025. Mr Noaeen did not meet the Shareholding Hurdle as at 30 June 2026 and therefore 50% of the STI awarded is payable on or around 31 August 2026 and the remaining 50% is deferred for one year. 100% will be paid in cash. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 30
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 25 (DRAFT 1) LTI awarded during the financial year In respect of the FY24 LTI granted to Ms Rayner and Mr Henderson, as the Adjust ed EPS CAGR for the three years ended 30 June 2026 was -5.3%, below the lowest financial performance scale of 6%, no LTI was payable to Ms Rayner and Mr Henderson in connection with the FY24 LTI grant. Summary of executive KMP remuneration – actual pre-tax awarded The table below provides details of the cash benefits awarded to the executive KMP in FY26 and FY25. This is a voluntary disclosure to provide shareholders with increased transparency in relation to executive KMP remuneration. Actual pay below represents the pre-tax, amounts for each executive KMP in connection with both years. Short-term benefits Post-employment benefits Long-term benefits Salary Cash bonus Superannuation LTI Total Executive KMP1: Year $ 2 $ 3 $ 2,4 $ 4,5 $ Fraser Henderson 2026 773,400 198,241 30,000 - 1,001,641 2025 649,792 211,400 30,208 - 891,400 Lilli Rayner 2026 756,233 201,829 30,000 - 988,062 2025 550,000 180,311 30,000 - 760,311 Arash Noaeen 2026 323,844 61,800 19,489 - 405,133 2025 - - - - - Total 2026 1,853,477 461,870 79,489 - 2,394,836 2025 1,199,792 391,711 60,208 - 1,651,711 Notes: 1. The remuneration for Fraser Henderson and Lilli Rayner is for the 12 month period ended 30 June 2026 and has been pro-rated to reflect 10 months as Co-CEOs and 2 months as Head of M&A and General Counsel and CFO respectively. The remuneration for Arash Noaeen is from 1 September 2025, the date Mr Noaeen was appointed as CFO . Propel’s former Managing Director, Albin Kurti is excluded from this voluntary disclosure, given he retired on 31 August 2025. 2. Represents actual cash salary and superannuation amounts received by the executive KMP during the financial year. Cash salary excludes the movement of annual leave accruals. 3. STI amount awarded in connection with the relevant financial year and settled in cash, subject to meeting the Shareholding Hu rdle (typically paid on or around 31 August). Superannuation on STI awarded is paid in accordance with legislative requirements, where applicable. 4. Superannuation contributions are paid in accordance with legislative requirements. Superannuation is included in the executive KMP’s TFR. 5. The FY24 grant which vested on 30 June 2026 and the FY23 grant which vested on 30 June 2025 were not achieved. The actual remuneration mix and the proportion of each executive KMP’s remuneration linked to performance in FY26 is illustrated below: 80% 85% 20% 15% Co-CEO CFO TFR STI ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 31
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 26 (DRAFT 1) Executive service agreements Remuneration and other terms of employment for the executive KMP are documented in their service agreements. Remuneration details are set out above and other key terms are summarised below: Position Co-CEO CFO Term of agreement Evergreen. Evergreen. Termination and notice 12 months. 6 months. Leave 6 weeks, annually. 5 weeks, annually. Post employment terms 12 months non-compete. 12 months non-compete. Change of control On the date immediately prior (or earlier if determined by the Company, acting reasonably), 100% of the performance rights granted to the executives will vest and 100% of the relevant TFR will be payable. On the date immediately prior (or earlier if determined by the Company, acting reasonably), 100% of the performance rights granted to the executives will vest and 100% of the relevant TFR will be payable. Execut ive KMPs have no entitlement to termination payments in the event of removal for misconduct. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 32
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 27 (DRAFT 1) 4. Statutory remuneration disclosures The table below discloses the remuneration for each KMP calculated in accordance with statutory requirements and Australian accounting standards in respect of FY26 and FY25: Short-term benefits Post- employment benefits Long-term benefits Salary and fees Cash bonus Non- Monetary Super- annuation Long service leave LTI Total Year $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ Non-executive directors: Naomi Edwards 2026 135,474 - - - - - 135,474 2025 100,000 - - - - - 100,000 Brian Scullin 2026 108,952 - - 13,074 - - 122,026 2025 134,529 - - 15,471 - - 150,000 Jennifer Lang 2026 103,000 - - - - - 103,000 2025 89,686 - - 10,314 - - 100,000 Neil Little 2026 71,352 - - 3,406 - - 74,758 2025 - - - - - - - Peter Dowding 2026 28,896 3,468 32,364 2025 76,233 8,767 85,000 Executive KMP: Fraser Henderson 2026 864,238 198,241 - 30,000 8,797 (48,789) 1,052,487 2025 662,525 211,400 - 30,208 3,575 (40,350) 867,358 Lilli Rayner 2026 828,982 201,829 2,470 30,000 90,957 (36,670) 1,117,568 2025 592,133 180,311 4,864 30,000 39,214 (40,475) 806,047 Arash Noaeen 2026 357,844 61,800 - 19,489 30,795 11,444 481,372 2025 - - - - - - - Former Executive KMP: Albin Kurti 2026 167,315 103,966 5,978 5,000 (7,958) 146,775 421,076 2025 922,663 402,733 4,327 30,000 5,221 (108,563) 1,256,381 Total 2026 2,666,053 565,836 8,448 104,437 122,591 72,760 3,540,125 2025 2,577,769 794,444 9,190 124,760 48,010 (189,388) 3,364,785 Notes: 1. The total cost of cash salary including annual leave taken and the increase or decrease in the annual leave provision applica ble as determined in accordance with AASB 119 Employee Benefits. 2. STI amount awarded in connection with the relevant financial year and settled in cash, subject to meeting the Shareholding Hu rdle (typically paid on or around 31 August). Superannuation on STI awarded is paid in accordance with legislative requirements, where applicable. Albin Kurti was paid 75% of his FY26 financial STI and 100% of his FY26 non-financial STI on a pro-rata basis, based on an assessment of results at the time of his retirement, being 31 August 2025, in cash. 3. Non-monetary benefits represent the costs to the Group, including any fringe benefits tax, largely for the provision of car parking. 4. Superannuation contributions are paid in accordance with legislative requirements. Superannuation is included in the ex ecutive KMP’s TFR. 5. Amounts disclosed represent the movements in long service leave accruals in accordance with AASB 119 Employee Benefits. 6. LTIs are share based payments dependent upon the Adjusted EPS CAGR over a three year period. In relation to the LTIs: • the remaining value of the accrual relating to the FY25 grant was released in FY26, noting the two-year Adjusted EPS CAGR was -6.8%, below the lowest threshold. The FY25 accrual was equivalent to 20% of the maximum FY25 LTI for Fraser Henderson and Lilli Rayner; • 20% of the FY26 LTI, pro -rated over 3 years (i.e 1/3 of the 20%) was accrued relating to the FY26 grant, noting the Adjusted EPS CAGR for the first year was -4.2%, below the lowest threshold; and • Albin Kurti was paid (in cash) one third of the target amount (i.e 1/3 of the 60%) of his FY26 LTI based on an assessment of results at the time he retired, being 31 August 2025. During FY26, 100% of non-executive directors’ remuneration was fixed and none was at risk. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 33
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2025 28 (DRAFT 1) FY26 Executive KMP performance rights allocations The following table shows the movement during the financial year in the number of performance -related rights issued over ordinary shares in Propel held directly, indirectly or beneficially by the executive KMP, including their personally related parties. Executive KMP Held as at 1 July 2025 Allocated as compensation during the year1 Vested during the year Cancelled/lapsed during the year Held at 30 June 2026 Fraser Henderson 80,657 125,986 - - 206,643 Lilli Rayner 68,796 123,607 - - 192,403 Arash Noaeen - 36,603 - - 36,603 Notes: 1. At Propel’s 2025 AGM, shareholders approved the resolutions granting Fraser Henderson, in total 206,643 performance rights, and granting 40,812 performance rights to Lilli Rayner, noting that 151,591 were granted to Ms Rayner prior to being appointed an executive director. No other Executive KMP held performance -related rights over issued ordinary shares in Propel directly, indirectly or beneficially. Outstanding performance rights for Executive KMP The following table sets out a summary of Long Term Variable Remuneration (‘LTVR’) grants in relation to performance rights. Executive KMP Award Grant date1 Performance period start date Performance period end date2 Fair value($)3 Maximum value of grants yet to be expensed ($)4 Fraser Henderson LTVR 2025 13/11/2025 01/07/2024 30/06/2027 4.72 380,701 LTVR 2026 13/11/2025 01/07/2025 30/06/2028 4.72 554,560 Lilli Rayner LTVR 2025 03/06/2025 01/07/2024 30/06/2027 4.49 308,894 LTVR 2026 (1) 03/07/2025 01/07/2025 30/06/2028 4.69 362,423 LTVR 2026 (2) 13/11/2025 01/07/2025 30/06/2028 4.72 179,790 Arash Noaeen LTVR 2026 01/09/2025 01/07/2025 30/06/2028 5.07 174,131 Notes: 1. Fr aser Henderson's LTVR 2025 and LTVR 2026, and Lilli Rayner's LTVR 2026 (2) , were granted following shareholder approval obtained at the Company’s 2025 AGM, in accordance with ASX Listing Rule 10.14. No shareholder approval was required for the following LTVR grants: a. Lilli Rayner's LTVR 2025 granted on 3 June 2025 and LTVR 2026 (1) granted on 3 July 2025; and b. Arash Noaeen's LTVR 2026 granted on 1 September 2025. The above grants were approved by the board on the relevant grant dates. 2. Subj ect to the achievement of the relevant hurdles, the vesting date for deferred LTVR is the business day after the release of Propel’s annual results in the relevant year. 3. Fair v alues represent the grant-date fair value of the performance rights determined in accordance with AASB 2. 4. The amount represents the maximum expected remaining value of the LTI to be expensed over the vesting period based on the fair value of the rights. The minimum value of performance rights is zero. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 34
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 29 (DRAFT 1) 5. Additional information and disclosures KMP shareholding The number of shares in the Company held during FY26 by each KMP, including their associated entities, is set out below: Balance at Received Balance at the start of as part of Purchases/ the end of the year remuneration (Sales) Other the year Non-executive directors: Naomi Edwards 38,590 - 15,690 - 54,280 Brian Scullin 364,936 - - - 364,936 Jennifer Lang 20,825 - - - 20,825 Neil Little1 - - - 578,282 578,282 Peter Dowding2 3,487,865 - - - 3,487,865 Executive KMP: Fraser Henderson 7,254,582 - 10,000 - 7,264,582 Lilli Rayner 753,629 - - - 753,629 Arash Noaeen3 - - - 62,057 62,057 Former Executive KMP: Albin Kurti4 10,166,373 - - - 10,166,373 22,086,800 - 25,690 640,339 22,752,829 Notes: 1. Neil Little was appointed as a non-executive director on 10 October 2025. Mr Little’s holdings relate to shares acquired prior to his appointment as a non- executive director. 2. Peter Dowding’s holdings is as at 13 November 2025, the date he retired as a non-executive director. 3. Arash Noaeen was appointed as a CFO on 1 September 2025, the date he became an executive KMP. Mr Noaeen’s holdings relate to shares acquired prior to his appointment as an executive KMP. 4. Albin Kurti’s holdings are as at 31 August 2025, the date he ceased to be a director. Other transactions with the executive KMP and their related parties No director of the Company has received or become entitled to receive a benefit by reason of a contract made between the Company (or any of its related entities) with any director (or with a firm of which he/she is a member or with a company in which he/she has a substantial financial interest). Business performance The table below shows the Group’s financial performance and factors affecting total shareholders return over the 5 year period to FY26: 2026 2025 2024 2023 2022 Revenue $'000 226,621 225,833 209,238 168,512 145,245 Operating EBITDA $'000 55,268 56,155 55,393 45,958 39,643 Operating NPAT $'000 20,731 21,604 21,135 20,888 18,201 Net Profit After Tax $'000 19,919 20,399 17,812 19,010 (318) Adjusted EPS cents 15.0 15.7 16.8 17.7 16.2 Dividends paid in connection with the FY (fully franked) cents 14.4 14.4 14.4 14.0 12.25 Share price at the end of the financial year $ 3.13 4.53 5.76 4.19 4.73 This concludes the Remuneration Report, which has been audited. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 35
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 30 (DRAFT 1) Shares under option There were no unissued ordinary shares of the Company under options outstanding at the date of this directors' report. Shares issued on the exercise of options There were no ordinary shares of the Company issued on the exercise of options during FY26 and up to the date of this directors’ report. Shares under performance rights Unissued ordinary shares of Propel under performance rights at the date of this report are as follows: Grant date Award Performance Period End date Exercise price Number under rights 03/06/2025 LTVR 2025 30/06/2027 $0.00 68,796 03/07/2025 LTVR 2026 (1) 30/06/2028 $0.00 82,795 01/09/2025 LTVR 2026 30/06/2028 $0.00 36,603 13/11/2025 LTVR 2025 30/06/2027 $0.00 80,657 13/11/2025 LTVR 2026 30/06/2028 $0.00 125,986 13/11/2025 LTVR 2026 (2) 30/06/2028 $0.00 40,812 No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in any share issue of the Company or of any other body corporate. Shares issued on the exercise of performance rights There were no ordinary shares of Propel issued on the exercise of performance rights during FY26 and up to the date of this report. Indemnity and insurance of officers The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. The directors have entered into deeds of indemnity, insurance and access with the Group which confirms each director’s right of access to Board papers and requires the Company to indemnify the directors on a full indemnity basis and to the fullest extent permitted by law, against all losses or liabilities (including all reasonable legal costs) incurred as an officer of the Company or of a related body corporate of the Company. Under the deeds of indemnity, insurance and access, the Company must maintain a directors and officers insurance policy insuring each director (among others) against liability as a director and officer of the Company and its related bodies corporate until seven years after each director ceases to hold office as a director of the Company or a related body corporate (or the date any relevant proceedings commenced during the seven year period have been finally resolved). The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. Indemnity and insurance of auditor The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During FY26, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 (‘Corporations Act’) for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Non-audit services Details of the amounts paid or payable to the auditor for non-audit services provided during FY26 by the auditor are outlined in note 23 to the financial statements. The directors are satisfied that the provision of non-audit services during FY26 by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act namely: ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 36
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Directors’ Report for the year ended 30 June 2026 Propel Funeral Partners Limited Directors' report 30 June 2026 31 (DRAFT 1) - all non-audit services have been reviewed and approved to ensure that they do not impact the integ rity and objectivity of the auditor; and - none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision - making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards. Officers of the Company who are former directors of Nexia Sydney Audit Pty Ltd There are no officers of the Company who are former directors of the Company's auditor, Nexia Sydney Audit Pty Ltd. Rounding of amounts The Company is of a kind referred to in Corporations Instrument 2026/183, issued by the Australian Securities and Investments Commission, relating to 'rounding -off'. Amounts in this directors’ report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act is set out immediately after this directors' report. This directors’ report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act. On behalf of the directors ___________________________ ___________________________ ___________________________ Naomi Edwards Lilli Rayner Fraser Henderson Chair Co-CEO Co-CEO 25 August 2026 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 37
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T o the Board of Directors of Propel Funeral Partners Limited Auditor’s Independence Declaration under section 307C of the CCoorrppoorraattiioonnss AAcctt 22000011 As lead audit director for the audit of the financial statements of Propel Funeral Partners Limited for the financial year ended 30 June 2026, I declare that to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (b) any applicable code of professional conduct in relation to the audit. Yours sincerely Nexia Sydney Audit Pty Ltd Mark Boyle Director Da te: 25 August 2026 Auditor’s Independence Declaration ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 38
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Propel Funeral Partners Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2026 Consolidated Note 2026 2025 $'000 $'000 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 3 (DRAFT 1) Revenue 5 226,621 225,833 Expenses Cost of sales and goods (68,436) (68,099) Employee costs 6 (76,867) (75,851) Occupancy and facility expenses (12,279) (11,751) Advertising expenses (4,774) (4,618) Motor vehicle expenses (3,446) (3,253) Other expenses (6,683) (6,597) 54,136 55,664 Acquisition costs 6 (1,318) (962) Net (loss)/gain on disposal of assets (647) 88 Other income 1,311 42 Depreciation expense 6 (16,077) (15,740) Interest income 385 475 Interest expense 6 (10,183) (10,136) Net financing charge on contract assets and contract liabilities 7 (62) (461) Net foreign exchange losses (239) (45) Profit before income tax expense 27,306 28,925 Income tax expense 8 (7,387) (8,526) Profit after income tax expense for the year attributable to the shareholders of Propel Funeral Partners Limited 19,919 20,399 Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation (17,401) 2,506 Other comprehensive income for the year, net of tax (17,401) 2,506 Total comprehensive income for the year attributable to the shareholders of Propel Funeral Partners Limited 2,518 22,905 cents cents Basic earnings per share 34 14.44 14.79 Diluted earnings per share 34 14.44 14.79 Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2026 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 39
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Propel Funeral Partners Limited Consolidated statement of financial position As at 30 June 2026 Consolidated Note 2026 2025 $'000 $'000 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 4 (DRAFT 1) Assets Current assets Cash and cash equivalents 9 12,532 9,046 Customer deposits 734 746 Contract assets 7 75,727 75,841 Trade and other receivables 10 8,834 9,548 Inventories 11 7,819 7,342 Prepayments 1,835 1,591 Total current assets 107,481 104,114 Non-current assets Investments accounted for using the equity method 30 408 437 Property, plant and equipment 12 316,468 312,148 Right-of-use assets 13 20,259 27,875 Goodwill 14 199,831 203,728 Deferred tax assets 8 5,169 6,529 Other assets 399 289 Total non-current assets 542,534 551,006 Total assets 650,015 655,120 Liabilities Current liabilities Trade and other payables 15 15,544 14,593 Borrowings 16 39,724 24,724 Income tax 251 861 Provisions 18 12,276 12,870 Lease liabilities 17 4,068 4,498 Contract liabilities 7 82,883 83,026 Total current liabilities 154,746 140,572 Non-current liabilities Borrowings 16 123,070 115,661 Lease liabilities 17 19,464 26,847 Deferred tax liabilities 8 12,390 13,321 Provisions 18 2,751 3,542 Other liabilities 87 108 Total non-current liabilities 157,762 159,479 Total liabilities 312,508 300,051 Net assets 337,507 355,069 Equity Issued capital 19 380,844 380,844 Reserves (16,823) 652 Accumulated losses (26,514) (26,427) Total equity 337,507 355,069 Consolidated Statement of Financial Position as at 30 June 2026 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 40
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Propel Funeral Partners Limited Consolidated statement of changes in equity For the year ended 30 June 2026 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 5 (DRAFT 1) Issued Foreign currency translation Share-based payments Accumulated Total equity capital reserve reserve losses Consolidated $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2024 380,436 (2,018) - (26,684) 351,734 Profit after income tax expense for the year - - - 20,399 20,399 Other comprehensive income for the year, net of tax - 2,506 - - 2,506 Total comprehensive income for the year - 2,506 - 20,399 22,905 Transactions with shareholders in their capacity as shareholders: Contributions of equity, net of transaction costs (note 19) 408 - - - 408 Share-based payments (note 35) - - 164 - 164 Dividends paid (note 20) - - - (20,142) (20,142) Balance at 30 June 2025 380,844 488 164 (26,427) 355,069 Issued Foreign currency translation Share-based payments Accumulated Total equity capital reserve reserve losses Consolidated $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2025 380,844 488 164 (26,427) 355,069 Profit after income tax expense for the year - - - 19,919 19,919 Other comprehensive income for the year, net of tax - (17,401) - - (17,401) Total comprehensive income for the year - (17,401) - 19,919 2,518 Transactions with shareholders in their capacity as shareholders: Share-based payments (note 35) - - (74) - (74) Dividends paid (note 20) - - - (20,006) (20,006) Balance at 30 June 2026 380,844 (16,913) 90 (26,514) 337,507 Consolidated Statement of Changes in Equity for the year ended 30 June 2026 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 41
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Propel Funeral Partners Limited Consolidated statement of cash flows For the year ended 30 June 2026 Consolidated Note 2026 2025 $'000 $'000 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 6 (DRAFT 1) Cash flows from operating activities Receipts from customers (inclusive of GST) 251,069 250,473 Payments to suppliers and employees (inclusive of GST) (196,206) (194,050) 54,863 56,423 Interest received 328 482 Interest and other finance costs paid - borrowings (9,619) (9,231) Interest paid - lease liabilities (AASB 16) (856) (1,059) Income taxes paid (6,712) (6,627) Net cash from operating activities 32 38,004 39,988 Cash flows from investing activities Payment for purchase of business, net of cash acquired 28 (7,572) (15,874) Payments for property, plant and equipment (27,310) (25,691) Proceeds from disposal of property, plant and equipment 2,855 337 Net cash outflow in contract assets and contract liabilities (124) (64) Net cash used in investing activities (32,151) (41,292) Cash flows from financing activities Proceeds from borrowings 85,919 81,750 Repayment of borrowings (63,260) (53,850) Loans to other parties 65 (65) Repayment of lease liabilities 33 (4,778) (4,597) Repayment of hire purchases 33 - (5) Dividends paid 20 (20,006) (20,142) Net cash (used in)/from financing activities (2,060) 3,091 Net increase in cash and cash equivalents 3,793 1,787 Cash and cash equivalents at the beginning of the financial year 9,046 7,250 Effects of exchange rate changes on cash and cash equivalents (307) 9 Cash and cash equivalents at the end of the financial year 9 12,532 9,046 Consolidated Statement of Cash Flows for the year ended 30 June 2026 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 42
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Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 7 (DRAFT 1) Note 1. General information These general purpose financial statements ('financial statements') relate to Propel Funeral Partners Limited as the consolidated entity (referred to hereafter as the 'Group') consisting of Propel Funeral Partners Limited (referred to hereaft er as 'Propel', the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2026. The financial statements are presented in Australian dollars, which is the Company's functional and presentation currency. Propel is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Level 18.03 135 King Street Sydney NSW 2000 A description of the nature of the Group's operations and its principal activities are incl uded in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 25 August 2026. The directors have the power to amend and reissue the financial statements. Note 2. Material accounting policy information New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Sta ndards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any material impact on the financial performance or position of the Group. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the AASB and the Corporations Act 2001, as appropriat e for for -profit oriented entities. These financial statements also comply with International Financial Reporting Standards Accounting Standards as issued by the International Accounting Standards Board ('IASB'). Historical cost convention The financial statements have been prepared under the historical cost convention, except for contingent consideration arising from business combinations, which is measured at fair value. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Non-IFRS information The notes to the financial statements include certain financial measures which are not prescribed by the AASBs, namely the reference to Operating EBITDA in note 4. Operating Earnings Before Interest, Tax, Depreciation and Amortisation (‘Operating EBITDA') is used to report the operating segments given the directors assess this to be one of the core earnings measures for the Group. Parent entity information In accordance with the Corporations Act, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 36. Notes to the Consolidated Financial Statements for the year ended 30 June 2026 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 43
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 8 (DRAFT 1) Principles of consolidation The financial statements incorporate the assets and liabilities of all subsidiaries of Propel as at 30 June 2026 and the results of all subsidiaries for the year then ended. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns throu gh its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control i s transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted f or using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non -controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM are responsible for the allocation of resources to operating segments and assessing their performance. Foreign currency translation The financial statements are presented in Australian dollars, which is the Company's functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into the Company's functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into Australian dollars at the closing rate. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of. Revenue recognition The Group recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 44
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 9 (DRAFT 1) Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other cont ingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received tha t are subject to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability. Rendering of service and sale of goods Revenue is recognised upon rendering of service and sale of goods; i.e. when the funeral, cremation or other service are performed or goods supplied which is at a point in time. It is also at this point that a contract asset and liability is crys tallised which results in the contract asset being recognised as cash and a contract liabili ty recognised as revenue. Refer to note 7 for further explanation. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Interest income Interest income is recognised in the statement of profit or loss over the relevant period using the effective interest method. Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjuste d by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: - when the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or - when the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for t he carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable author ity on either the same taxable entity or different taxable entities which intend to settle simultaneously. Propel (the 'head entity') and its wholly -owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the 'separate taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group. In addition to its own current and deferred tax amounts, the head entity also recogn ises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax consolidated group. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 45
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 10 (DRAFT 1) Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consol idated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group' s normal operating cycle; it is held primarily for the purpose o f trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is h eld primarily for the purpose of trading; it is due to be settled within 12 months after th e reporting period; or there is no right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non- current. Deferred tax assets and liabilities are always classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short -term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Contract assets and contract liabilities Contract assets and contract liabilities held directly by the Group and with friendly societies are recognised in the stateme nt of financial position. The profit or loss impact is the recognition of investment income earned on those funds and a finance charge to reflect the financing component associated with the contract liability to provide future goods and services. In addition to this, administration fees charged at the time the contract is written are recognised upon completion of the contract (i.e. when the funeral service is provided). The carrying value of the contract asset and contract liability is impacted by: the investment returns; the financing charge; contracts acquired through business combinations; sale of new contract and completion of contractual services. Contract assets are recognised when the Group has committed to provide goods or services to the customer at a future date at a fixed price, but where the Group is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes. Contract liabilities represent the Group's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the Group recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the Group has transferred the goods or services to the customer. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Inventories Work in progress and finished goods are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 46
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 11 (DRAFT 1) Inventories includes coffins, memorial items, unsold memorial plots and burial positions, which are primarily held for trading. These are sold, consumed or realised as part of the usual operating cycle of the Group. Even when they are not expected to be realised within twelve months, they are classified as current. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Joint ventures A joint venture is a joint ar rangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Investments in joint ventures are accounted for using the equity method. Under the equity method, the share of the profits or losses of the joint venture is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in joint ventures are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the joint venture. Goodwill relating to the joint venture is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Income earned from joint venture entities reduce the carrying amount of the investment. Property, plant and equipment Each class of property, plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight -line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings 20 - 40 years Improvements 3 - 40 years Plant and equipment 2 - 25 years Motor vehicles 5 - 15 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are dep reciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Construction in progress Construction in progress is stated at cost and is not depreciated until it is ready for use. The costs are transferred to the relevant class of asset from the time the asset is held ready for use and is then subsequently depreciated based on the class of asset. Right-of-use assets Right-of-use assets are recognised at the commencement date of a lease. The right -of-use assets are measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases relating to low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 47
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 12 (DRAFT 1) Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortised and has an indefinite useful life. Instead, goodw ill is tested annually for impairment, or more frequently if events or changes in circumstances i ndicate that it might be impaired and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed. Goodwill is allocated to Cash-Generating Units ('CGUs') for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being at the regional levels. Refer to note 14 for further details. Impairment of non-financial assets Non-financial assets, other than goodwill, are reviewed annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value -in-use. The value -in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or CGU to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a CGU. Trade and other payables Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities when the Group does not have a right to defer settlement of the liability for a t least 12 months after the reporting period. Lease liabilities Lease liabilities are recognised at the commencement date of a lease. The lease liabilities are initially recognised at the present value of the lease payments to be made over the term of the leases, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivables, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred. AASB 107 ‘Statement of Cash Flows’ does not specify how to classify cash flows from interest paid as operating or financing cash flows. The Group has chosen to present interest paid on borrowings and leases as operating cash flows in the statement of cash flows. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 48
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 13 (DRAFT 1) Provisions Provisions are recognised when the Group has a present (legal or con structive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Contingent consideration Contingent consideration is initially recognised at the present value of the Group's probability weighted estimate of the cash outflow. It reflects management’s estimate that the target will be achieved and is discounted using the Group incremental borrowing rate. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. Share-based payments Equity-settled share-based compensation benefits are provided to Executive KMP via long -term incentive ('LTI') schemes. Equity-settled transactions are awards of performance rights over shares, that are provided in exchange for the rendering of services. The cost of equity-settled transactions is measured by reference to the fair value at the date at which they are granted. The fair value of the performance rights are determined by reference to the Company's share price at the grant date. The cost is recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of performance rights that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. Services and non -market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of performance rights that will ult imately vest. No expense is recognised for awards that do not ultimately vest because non - market performance and/or service conditions have not been met. Fair value measurement When a financial or non -financial asset or liability is measured at fair val ue for recognition or disclosure purposes, the fair value is based on, as applicable, the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date and on the assumption that the transaction will take place either in the principal market, or in the absence of a principal market, in the most advantageous market available. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques used to measure fair value are those appropriate in the circumstances and which maximise the use of relevant observable inputs and minimise the use of unobservable inputs. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 49
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 14 (DRAFT 1) Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects th e significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends Dividends are recognised when declared during the financial year. Business combinations The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired. The consideration transferred is the sum of the acquisition date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non -controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss. On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the Group's operating or accounting policies and other pertinent conditions in existence at the acquisition date. Where the business combination is achieved in stages, the Group remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss. Contingent consideration to be transferred by the acquirer is recognised at the acquisition date fair value. Subsequent changes in the fair value of the contingent consideration is recognised in profit or loss. The difference between the acquisition date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre -existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognis ed as a gain directly in profit or loss by the acquirer on the acquisition date, but only after a reassessment of the identification and measuremen t of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquiree. Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisiona l amounts recognised and also recognises additional asse ts or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition -date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition o r (ii) when the acquirer receives all the information possible to determine fair value. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 50
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Material accounting policy information (continued) 15 (DRAFT 1) Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the shareholders of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of additional ordinary shares that would have been outstanding assuming conversion of all dilutive potential ordinary shares. Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as p art of the expense. Receivables and payables are stated inclusive of the a mount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. Rounding of amounts The Company is of a kind referred to in Corporations Instrument 2026/183, issued by the Australian Securities and Investments Commission, relating to 'rounding -off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2026. The Group does not expect these amendments to have a material impact on the amoun ts recognised in prior periods or will affect the current or future periods. The main standards are listed below: ● AASB 18 Presentation and Disclosure in Financial Statements (effective from 1 January 2027) ● AASB 2014-10 Sale or contribution of assets between investor and its associate or joint venture (effective from 1 January 2028) AASB 18 replaces AASB 101 an d applies to the Group from the year ending 30 June 2028, with the year ending 30 June 2027 restated as the comparative period. It does not change recognition or measurement and will not affect reported profit or net assets. It will change the structure of the statement of profit or loss through new mandatory operating profit and profit before financing and income taxes subtotals; require the Group's Operating EBITDA, Operating EBIT and Operating NPAT measures to be disclosed and reconciled in a single note within the audited financial statements; and require interest paid, currently classified as an operating cash flow, to be classified as a financing cash flow. The Group has commenced its assessment and is mapping its chart of accounts to the new categories. The financial effect of the presentational changes has not yet been quantified. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 51
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 16 (DRAFT 1) Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Allowance for expected credit losses The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for e ach ageing group. These assumptions include historical collection rates and available forward -looking information. The allowance for expected credit losses, as disclosed in note 10, is calculated based on the information available at the time of preparation. The actual credit losses in future years may be higher or lower. Fair value measurement hierarchy The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Leve l 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective. The fair value of assets and liabilities classified as level 3 is determ ined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs including any management probability analysis. Estimation of useful lives of assets The Group determines the estimated useful lives and related depreciation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation charge w ill increase where the useful lives are less than previously estimated lives, or technically obsolete or non -strategic assets that have been abandoned or sold will be written off or written down. Goodwill The Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill has suffered any impairment, as outlined in note 14 and in accordance with the accounting policy stated in note 2. The recoverable amounts of CGUs have been determined based on value -in-use calculations. These calculations require the use of assumptions, including estimated discount rates based on the current cost of capital, budgeted cash flows and growth rates of the estimated future cash flows. Impairment of non-financial assets other than goodwill The Group assesses impairment of non -financial assets other than goodwill at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value -in-use calculations. These calculations require the use of assumptions, including estimated discount rates based on the current cost of capital, budgeted cash flows and growth rates of the estimated future cash flows. Investment income on contract assets Funds held in connection with pre -paid contracts are largely held with third party friendly societies who invest the funds in cash and fixed interest products (more than 90% of funds held) and other asset classes (less than 10% of funds held). Investment income on contract assets in relation to pre-paid contracts is calculated using an estimated rate which is based on past performance of the investments, having regard to interest rates during the reporting period. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 52
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 3. Critical accounting judgements, estimates and assumptions (continued) 17 (DRAFT 1) Significant financing on contract liabilities The Group recognises contract liabilities in relation to pre-paid funerals and other products and services where the customer pays for those products and services in advance. As the period between when the customer pays for that good or service and when the Group transfers the goods or service to a customer usually exceeds one year, it is determined there is a significant financing component for the pre-paid contracts in accordance with AASB 15 ‘Revenue from Contracts with Customers’. The Group discounts the nominal amount of the promised consideration to the price that the customer would pay in cash for the goods or services when (or as) they tran sfer to the customer, also considering the credit characteristics of the third party friendly societies where the funds are largely held. Business combinations As discussed in note 2, business combinations are initially accounted for on a provisional basis. The fair value of assets acquired, liabilities and contingent liabilities assumed are initially estimated by the Group taking into consideration all available information at the reporting date. Fair value adjustments on the finalisation of the business combination accounting is retrospective, where applicable, to the period the combination occurred and may have an impact on the assets and liabilities, depreciation and amortisation reported. Contingent consideration Contingent consideration is recognised at fair value using the present value of Group’s probability weighted estimate of the cash outflow. Management estimates a 100% probability that the target will be achieved and the liability is discounted using the Group's incremental borrowing rate. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exer cise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Many of the property leases to which the Group is party, have extension options. These terms maximise operational flexibility across the Group. They are only included in the calculation of the lease term if the Group is ‘reasonably certain’ that it wi ll exercise the option to renew the lease. The assessment is reviewed if a significant event or change in circumstance occurs which affects this assessment and the event is within the control of the Group. Some of the property leases to which the Group is party, have purchase options. Purchase options are only included in the measurement of the lease liabilities if the Group is ‘reasonably certain’ that it will exercise the option and the exercise price is fixed rather than variable. Incremental borrowing rate Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the Group estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment. Note 4. Operating segments Identification of reportable operating segments The Group is organised into two geographic segments, Australian operations and New Zeala nd operations, both of which operate in the death care related services industry. The Australian and New Zealand operations include the aggregation of a number of businesses that exhibit similar long-term financial performance and economic characteristics. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 53
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 4. Operating segments (continued) 18 (DRAFT 1) Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'), which includes two reportable segments, being Australia and New Zealand operations. The CODM are responsible for the allocation of resources to operating segments and assessing their performance. The CODM considers Operating EBITDA to be one of the core earnings measures of the Group. Intersegment transactions Intersegment transactions were made at market rates. Intersegment transactions are eliminated on consolidation. Intersegment receivables, payables and loans Intersegment loans are initially recognised at cost. Intersegment loans receivable and loan s payable that earn or incur non - market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation. Operating segment information Australian New Zealand operations operations Total Consolidated - 2026 $'000 $'000 $'000 Revenue Sales to external customers 163,514 62,061 225,575 Other revenue (excluding interest) 847 199 1,046 Total revenue 164,361 62,260 226,621 Operating EBITDA 38,810 16,458 55,268 Acquisition costs (1,203) (115) (1,318) Net loss on disposal of assets (282) (365) (647) Net other income/(expenses) * 712 (533) 179 Depreciation and amortisation (12,370) (3,707) (16,077) Interest income ** 4,674 56 4,730 Finance costs ** (9,774) (4,754) (14,528) Net financing charge on contract assets and contract liabilities (15) (47) (62) Net foreign exchange losses (217) (22) (239) Profit before income tax expense 20,335 6,971 27,306 Income tax expense (7,387) Profit after income tax expense 19,919 Assets Segment assets 566,172 159,233 725,405 Intersegment eliminations (75,390) Total assets 650,015 Liabilities Segment liabilities 294,374 93,524 387,898 Intersegment eliminations (75,390) Total liabilities 312,508 * Includes $1,223,000 management charge from the Australian operations to the New Zealand operations. ** Includes $4,345,000 interest charged on intercompany loan from th e Australian operations to the New Zealand operations. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 54
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 4. Operating segments (continued) 19 (DRAFT 1) Australian New Zealand operations operations Total Consolidated - 2025 $'000 $'000 $'000 Revenue Sales to external customers 163,461 61,407 224,868 Other revenue (excluding interest) 718 247 965 Total revenue 164,179 61,654 225,833 Operating EBITDA 39,576 16,579 56,155 Acquisition costs (882) (80) (962) Net gain on disposal of assets 70 18 88 Net other income/(expenses) * 1,213 (1,662) (449) Depreciation and amortisation (12,180) (3,560) (15,740) Interest income ** 5,465 75 5,540 Finance costs ** (9,580) (5,621) (15,201) Net financing charge on contract assets and contract liabilities (437) (24) (461) Net foreign exchange losses (45) - (45) Profit before income tax expense 23,200 5,725 28,925 Income tax expense (8,526) Profit after income tax expense 20,399 Assets Segment assets 568,281 168,217 736,498 Intersegment eliminations (81,378) Total assets 655,120 Liabilities Segment liabilities 279,563 101,866 381,429 Intersegment eliminations (81,378) Total liabilities 300,051 * Includes $1,596,000 management charge from the Australian operations to the New Zealand operations. ** Includes $ 5,065,000 interest charged on intercompany loan from the Australian operations to the New Zealand operations. Geographical information Geographical non-current assets 2026 2025 $'000 $'000 Australia 465,293 468,865 New Zealand 147,463 156,988 Intersegment eliminations (75,390) (81,378) 537,366 544,475 The geographical non -current assets above are exclusive of, where applicable, financial instruments, deferred tax assets, post-employment benefits assets and rights under insurance contracts. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 55
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 20 (DRAFT 1) Note 5. Revenue Consolidated 2026 2025 $'000 $'000 Revenue from contracts with customers 225,575 224,868 Other revenue Rent 1,046 965 Revenue 226,621 225,833 Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 2026 2025 $'000 $'000 Funeral operations 198,436 197,997 Cemetery, crematoria and memorial gardens 24,031 24,201 Other trading revenue 3,108 2,670 225,575 224,868 All revenue is recognised at a point in time. Refer to note 4 for geographical region information. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 56
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 21 (DRAFT 1) Note 6. Expenses Consolidated 2026 2025 $'000 $'000 Profit before income tax includes the following specific expenses: Depreciation Buildings 3,734 3,390 Improvements 1,100 1,163 Plant and equipment 3,941 3,897 Motor vehicles 2,406 2,405 Total depreciation - property, plant and equipment (note 12) 11,181 10,855 Building right-of-use assets 4,522 4,534 Plant and equipment right-of-use assets 359 336 Motor vehicles right-of-use assets 15 15 Total depreciation - right-of-use assets (note 13) 4,896 4,885 Total depreciation expense 16,077 15,740 Other non-operating expenses Acquisition costs (note 28) 1,318 962 Interest expense Interest and finance charges paid/payable on borrowings 9,327 9,077 Interest and finance charges paid/payable on lease liabilities (AASB 16) 856 1,059 Total interest expense 10,183 10,136 Employee costs Employee costs and superannuation expense 72,597 71,814 Employee costs reclassed to other costs (1,090) (840) Defined contribution superannuation expense 5,434 4,713 Share-based payments expense (74) 164 Total employee costs 76,867 75,851 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 57
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 22 (DRAFT 1) Note 7. Contract assets and liabilities Consolidated 2026 2025 $'000 $'000 Contract assets – pre-paid contracts 75,727 75,841 Contract liabilities – pre-paid contracts 80,456 80,826 – monument works 2,427 2,200 82,883 83,026 Pre-paid contracts The Group recognises contract assets and contract liabilities in relation to pre -paid funerals, memorials and other products and services where the customer pays for those products and services in advance. Funds held in connection with pre -paid contracts are largely held with third party friendly societies who invest the funds in cash and fixed interest products (more than 90% of funds held) and other asset classes (less than 10% of funds held). Profit or loss impacts and movements in contract assets and contract liabilities in relation to the pre-paid contracts are set out below: Consolidated 2026 2025 $'000 $'000 Profit or loss impact of undelivered contract assets and contract liabilities - pre-paid contracts Investment income on contract assets 2,054 1,614 Finance charge on contract liabilities (2,116) (2,075) Net financing charge on contract assets and contract liabilities - pre-paid contracts (62) (461) Consolidated 2026 2025 $'000 $'000 Movements in contract assets - pre-paid contracts Opening balance 75,841 77,166 Sales of new contract assets 5,022 4,700 Redemption of contract assets following service delivery (7,118) (7,650) Exchange differences (72) 11 Increase due to investments returns 2,054 1,614 Closing balance 75,727 75,841 Contract assets expected to be realised within one year 7,107 7,518 Contract assets expected to be realised after one year 68,620 68,323 Total contract assets - pre-paid contracts 75,727 75,841 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 58
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 7. Contract assets and liabilities (continued) 23 (DRAFT 1) Consolidated 2026 2025 $'000 $'000 Movements in contract liabilities - pre-paid contracts Opening balance 80,826 82,156 Sales of new contract liabilities 5,022 4,700 Decrease following delivery of services (7,428) (8,116) Exchange differences (80) 11 Increase due to finance charge applied in accordance with AASB 15 2,116 2,075 Closing balance 80,456 80,826 Contract liabilities expected to be realised within one year 7,551 8,012 Contract liabilities expected to be realised after one year 72,905 72,814 Total contract liabilities - pre-paid contracts 80,456 80,826 All contract assets and contract liabilities have been treated as current because the asset and the liability originate from the same contract. The contract liability is recognised as a current liability as the Group does not have a right to defer settlement of the liability for more than 12 months after the reporting period. Accordingly, because the liability is classified as current, the associated contract asset balance is also classified as current. The assets and liabilities have been split between amounts ‘expected to be realised within one year’ and ‘amounts expected to be realised after one year’ based on historical trends. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 59
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 24 (DRAFT 1) Note 8. Income tax Consolidated 2026 2025 $'000 $'000 Income tax expense Current tax 6,976 8,367 Deferred tax - origination/(reversal) of temporary differences 784 372 Adjustment recognised for prior periods (373) (213) Aggregate income tax expense 7,387 8,526 Deferred tax included in income tax expense comprises: Decrease in deferred tax assets 1,196 1,235 Decrease in deferred tax liabilities (412) (863) Deferred tax - origination/(reversal) of temporary differences 784 372 Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense 27,306 28,925 Tax at the statutory tax rate of 30% 8,192 8,678 Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Net financing charge on contract assets and liabilities 18 1 Prepaid contracts finance income (117) - Entertainment expenses 79 85 Acquisition costs 1 1 Release of contingent consideration (262) - Other non-allowable/(non-assessable) items (11) 89 7,900 8,854 Adjustment recognised for prior periods (373) (213) Difference in overseas tax rates (140) (115) Income tax expense 7,387 8,526 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 60
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 8. Income tax (continued) 25 (DRAFT 1) Consolidated 2026 2025 $'000 $'000 Deferred tax asset Deferred tax asset comprises temporary differences attributable to: Amounts recognised in profit or loss: Allowance for expected credit losses 81 95 Employee benefits 3,649 3,707 Accrued expenses 56 47 Termination fee in connection with the management internalisation - 976 Net movement of lease balances (AASB 16) 1,073 1,146 4,859 5,971 Amounts recognised in equity: Transaction costs on share issue 310 558 Deferred tax asset 5,169 6,529 Movements: Opening balance 6,529 7,751 Charged to profit or loss (1,196) (1,235) Additions through business combinations (note 28) 25 28 Other adjustments (88) 12 Net movement of lease balances (AASB 16) (101) (27) Closing balance 5,169 6,529 Consolidated 2026 2025 $'000 $'000 Deferred tax liability Deferred tax liability comprises temporary differences attributable to: Amounts recognised in profit or loss: Property, plant and equipment 12,390 13,321 Deferred tax liability 12,390 13,321 Movements: Opening balance 13,321 14,448 Credited to profit or loss (412) (863) Additions through business combinations - 20 Other adjustments (146) (70) Reversal of deferred balance on property disposal (373) (214) Closing balance 12,390 13,321 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 61
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 26 (DRAFT 1) Note 9. Cash and cash equivalents Consolidated 2026 2025 $'000 $'000 Current assets Cash on hand 58 59 Cash at bank 7,763 8,987 Cash on deposit 4,711 - 12,532 9,046 Note 10. Trade and other receivables Consolidated 2026 2025 $'000 $'000 Current assets Trade receivables - customer contracts 8,886 9,704 Other receivables 223 165 Less: Allowance for expected credit losses (275) (321) 8,834 9,548 Allowance for expected credit losses The Group has recognised a provision of allowance for expected credit losses of $95,000 (2025: $179,000) in profit or loss for the year ended 30 June 2026. The ageing of the receivables and allowance for expected credit losses provided for above are as follows: Expected credit loss rate Carrying amount Allowance for expected credit losses 2026 2025 2026 2025 2026 2025 Consolidated % % $'000 $'000 $'000 $'000 Current - - 6,137 7,017 13 19 1 to 3 months overdue 2% 3% 1,182 1,102 29 33 3 to 6 months overdue 9% 10% 508 495 45 50 Over 6 months overdue 15% 17% 1,282 1,255 188 219 9,109 9,869 275 321 Movements in the allowance for expected credit losses are as follows: Consolidated 2026 2025 $'000 $'000 Opening balance 321 292 Loss allowance recognised during the year 95 179 Receivables written off during the year as uncollectable (126) (117) Movement in acquired provisions (2) (37) Movements in exchange rates (13) 4 Closing balance 275 321 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 62
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 27 (DRAFT 1) Note 11. Inventories Consolidated 2026 2025 $'000 $'000 Current assets Work in progress - at cost 1,175 1,084 Finished goods - at cost 6,663 6,295 Less: Provision for inventory obsolescence (19) (37) 7,819 7,342 Note 12. Property, plant and equipment Consolidated 2026 2025 $'000 $'000 Non-current assets Land - at cost 123,007 124,938 Buildings - at cost 149,700 139,099 Less: Accumulated depreciation (20,667) (17,342) 129,033 121,757 Improvements - at cost 21,408 19,529 Less: Accumulated depreciation (4,963) (4,364) 16,445 15,165 Plant and equipment - at cost 48,352 43,432 Less: Accumulated depreciation (20,776) (19,327) 27,576 24,105 Motor vehicles - at cost 28,520 28,466 Less: Accumulated depreciation (12,098) (11,594) 16,422 16,872 Construction in progress - at cost 3,985 9,311 316,468 312,148 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 63
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 12. Property, plant and equipment (continued) 28 (DRAFT 1) Reconciliations Reconciliations of the written down values at the beginning and e nd of the current and previous financial year are set out below: Plant and Motor Construction Land Buildings Improvements equipment vehicles in progress Total Consolidated $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2024 115,230 117,544 13,883 22,383 14,863 5,141 289,044 Additions 7,080 3,546 1,286 2,857 1,859 10,263 26,891 Additions through business combinations 1,856 2,939 47 604 498 - 5,944 Disposals - - - (17) (347) (5) (369) Exchange differences 772 482 70 66 69 35 1,494 Transfers in/out - 636 1,042 2,109 2,335 (6,123) (1) Depreciation expense (note 6) - (3,390) (1,163) (3,897) (2,405) - (10,855) Balance at 30 June 2025 124,938 121,757 15,165 24,105 16,872 9,311 312,148 Additions 4,111 12,962 987 3,540 1,896 3,274 26,770 Additions through business combinations (note 28) 896 1,710 - 152 352 - 3,110 Disposals (1,550) (937) (110) (482) (668) - (3,747) Exchange differences (5,388) (3,238) (584) (474) (619) (329) (10,632) Transfers in/out - 513 2,087 4,676 995 (8,271) - Depreciation expense (note 6) - (3,734) (1,100) (3,941) (2,406) - (11,181) Balance at 30 June 2026 123,007 129,033 16,445 27,576 16,422 3,985 316,468 Note 13. Right-of-use assets Consolidated 2026 2025 $'000 $'000 Non-current assets Land and buildings - right-of-use 38,825 45,384 Less: Accumulated depreciation (19,304) (18,247) 19,521 27,137 Plant and equipment - right-of-use 1,549 1,460 Less: Accumulated depreciation (841) (730) 708 730 Motor vehicles - right-of-use 38 43 Less: Accumulated depreciation (8) (35) 30 8 20,259 27,875 Right-of-use assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For impairment testing, the right-of-use assets have been allocated to the regional CGUs. Refer to note 14 for further information on the impairment testing key assumptions and sensitivity analysis. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 64
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 13. Right-of-use assets (continued) 29 (DRAFT 1) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Land and buildings Plant and equipment Motor vehicles Total Consolidated $'000 $'000 $'000 $'000 Balance at 1 July 2024 28,399 881 23 29,303 Additions 908 175 - 1,083 Additions through business combinations 1,272 17 - 1,289 Lease reassessment and rent increases 1,049 - - 1,049 Early terminations (89) (10) - (99) Exchange differences 132 3 - 135 Depreciation expense (note 6) (4,534) (336) (15) (4,885) Balance at 30 June 2025 27,137 730 8 27,875 Additions 1,792 376 38 2,206 Additions through business combinations (note 28) 837 8 - 845 Lease reassessment and rent increases 49 - (1) 48 Early terminations (5,103) (5) - (5,108) Exchange differences (669) (42) - (711) Depreciation expense (note 6) (4,522) (359) (15) (4,896) Balance at 30 June 2026 19,521 708 30 20,259 For other lease related disclosures, refer to the following: - note 6 for details of depreciation on right-of-use assets and interest on lease liabilities; - note 17 for lease liabilities at 30 June 2026; - note 21 for undiscounted future lease commitments; and - statement of cash flows for repayment of lease liabilities. Note 14. Goodwill Consolidated 2026 2025 $'000 $'000 Non-current assets Goodwill - at cost 199,831 203,728 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 65
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 14. Goodwill (continued) 30 (DRAFT 1) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Goodwill Consolidated $'000 Balance at 1 July 2024 194,497 Additions through business combinations 8,189 Adjustments for prior year business combinations 9 Exchange differences 1,033 Balance at 30 June 2025 203,728 Additions through business combinations (note 28) 2,758 Adjustments for prior year business combinations 7 Exchange differences (6,662) Balance at 30 June 2026 199,831 Goodwill acquired through business combinations has been allocated to CGUs on a regional level, which is consistent with reporting and monitoring for management purposes. The CGUs identified for the year ended 30 June 2026 and 30 June 2025 are as follows: - New South Wales (NSW) - Queensland (QLD) - Victoria (VIC) - Tasmania (TAS) - South Australia (SA) - Western Australia (WA) - Australian Capital Territory (ACT) - New Zealand (NZ) Goodwill is specific to each CGU and is allocated as follows: Consolidated 2026 2025 $'000 $'000 NSW 39,595 39,595 QLD 41,451 41,451 VIC 21,629 21,629 TAS 13,645 13,645 SA 12,654 12,654 WA 11,287 11,287 ACT 6,484 6,484 NZ 53,086 56,983 199,831 203,728 Impairment testing The recoverable amount of the Group's goodwill has been determined by a value-in-use calculation using a 5 year discounted cash flow model. The Board approved budgeted cashflows have been used for the first year and then extrapolated for a further 4 years using steady rates, together with a terminal value. Budgeted cash flows have been based on past performance and expectations for the future. Key assumptions are those to which the recoverable amount of an asset or CGU is most sensitive and are as follows: - discount rate; and - growth rates. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 66
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 14. Goodwill (continued) 31 (DRAFT 1) The key assumptions, including the pre -tax discount rate which was 11.3% (2025: 10.8%), used for assessing the carrying value of goodwill of each CGU reflect the risk estimates for the business as a whole. Growth rates of 4.8% ( 30 June 2025: 5.0%) for revenue, 4.3% ( 30 June 2025: 4.3%) for cost of sales and goods and 2.7% (30 June 2025: 2.7%) for operating expenses and overheads have been adopted. A long-term growth rate of 3.0% (30 June 2025: 3.0%) was used to extrapolate cash flows beyond the 5 year forecast period. These growth rates are broadly in line with historical trends and forecasts prepared by market analysts. Based on the above, the Group's recoverable amount exceeded the Group's carrying amount. Given this, no impairment was recognised. Sensitivity As disclosed in note 3, the directors have applied judgements and estimates in the impairment testing of goodwill. Changes to these assumptions may result in a reduction in the carrying amount of go odwill. A sensitivity analysis was performed by adjusting underlying assumptions unfavourably by 10%. The sensitivity analysis indicated that material headroom exists in the value-in-use calculations for all CGUs, except for the ACT CGU under a scenario where the pre-tax discount rate was increased by 10%, with all other assumptions held constant. Under this scenario, the recoverable amount for the ACT CGU was lower than its carrying amount , however the shortfall of the recoverable amount below the carrying amount was not material. The directors note that in connection with the sensitivity analysis, no other changes to key assumptions gave rise to an impairment. Note 15. Trade and other payables Consolidated 2026 2025 $'000 $'000 Current liabilities Trade payables 4,374 5,158 Deposits 1,390 1,235 Accrued expenses 3,724 3,848 GST payable 1,113 1,460 Other payables 4,943 2,892 15,544 14,593 Refer to note 21 for further information on financial risk management. Note 16. Borrowings Consolidated 2026 2025 $'000 $'000 Current liabilities Bank Loans 39,724 24,724 Non-current liabilities Bank Loans 123,070 115,661 162,794 140,385 Senior Debt 163,712 141,053 Less: loan establishment costs (918) (668) Total Bank Loans 162,794 140,385 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 67
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 16. Borrowings (continued) 32 (DRAFT 1) Refer to note 21 for further information on financial risk management. Bank Loans As at the reporting date, the Group was party to the following debt facilities with Westpac Banking Corporation (‘Financier’): - $235,000,000 senior debt facility which matures in October 2029; - $40,000,000 working capital facility which matures in October 2029 and is required to be cleaned down annually; and - $50,000,000 accordion facility, drawdown of which is subject to satisfaction of customary conditions precedent/approvals, resulting in total debt facilities of $325,000,0 00 (together, ‘Senior Debt’), of which $163,712,000 was drawn as at 30 June 2026 ( 30 June 2025: $141,053,000). The net debt position (i.e. drawn Senior Debt less cash and cash equivalents of $12,532,000) was $151,180,000 as at 30 June 2026 (30 June 2025: $132,007,000). In connection with the Senior Debt, the Company and its subsidiaries have granted a charge in favour of the Financier over all its assets and guaranteed the payment of the secured monies. Financing arrangements As at the reporting date, the Group had access to the following funding sources: Consolidated 2026 2025 $'000 $'000 Total Senior Debt facilities (including the accordion facility) 325,000 275,000 Used at the reporting date (163,712) (141,053) Unused at the reporting date 161,288 133,947 The financial covenant ratios applicable to the Senior Debt are tested biannually and calculated on a 12 month rolling basis and, as at 30 June 2026, were as follows: - net leverage ratio which must be no greater than 5.0x; and - a fixed charge cover ratio which must be greater than 1.75x. Both covenant ratios were satisfied as at 30 June 2026, being 2.2x (2025: 2.1x) and 3.8x (2025: 3.9x) respectively. The Group is not aware of any facts or circumstances that indicate that it may have difficulty complying with the financial covenant ratios in the 12 months following the reporting period. Note 17. Lease liabilities Consolidated 2026 2025 $'000 $'000 Current liabilities Lease liability 4,068 4,498 Non-current liabilities Lease liability 19,464 26,847 23,532 31,345 Refer to note 13 for further information on right-of-use assets. Refer to note 21 for further information on financial risk management. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 68
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 33 (DRAFT 1) Note 18. Provisions Consolidated 2026 2025 $'000 $'000 Current liabilities Employee benefits 11,096 11,031 Contingent consideration (note 22) 1,137 1,773 Lease make good 43 66 12,276 12,870 Non-current liabilities Employee benefits 548 640 Contingent consideration (note 22) 1,504 2,293 Lease make good 286 304 Perpetual maintenance care provision 413 305 2,751 3,542 15,027 16,412 Lease make good The provision represents the present value of the estimated cost to make good premises leased by the Group at the end of the respective lease terms. Perpetual maintenance care provision The provision represents the estimated perpetual maintenance care of the Group’s cemeteries and memorial sites. Movements in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below: Lease Perpetual maintenance make good care Consolidated - 2026 $'000 $'000 Carrying amount at the start of the year 370 305 Additional provisions recognised 35 108 Additions through business combinations (note 28) 23 - Unused amounts reversed (81) - Movements due to change in discount rate (18) - Carrying amount at the end of the year 329 413 Note 19. Issued capital Consolidated 2026 2025 2026 2025 Shares Shares $'000 $'000 Ordinary shares - fully paid 137,973,594 137,973,594 380,844 380,844 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 69
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 19. Issued capital (continued) 34 (DRAFT 1) Movements in ordinary share capital Details Date Shares Issue price/ fair value $'000 Balance 1 July 2024 137,873,815 380,436 Shares issued - business combinations 17 July 2024 84,534 $4.03 341 Shares issued - business combinations 1 April 2025 15,245 $4.43 67 Balance 30 June 2025 137,973,594 380,844 Balance 30 June 2026 137,973,594 380,844 Ordinary shares Ordinary shares entitle the holder to participate in any dividends and any proceeds attributable to shareholders should the Company be wound up, in proportions that consider both the number of shares held and the extent to whi ch those shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Share buy-back There is no current on-market share buy-back. Capital risk management The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calcula ted as total borrowings less cash and cash equivalents. In order to maintain or adjust the capital structure, the Group may raise further debt, adjust the amount of dividends paid t o shareholders, return capital to shareholders, issue new shares and/or sell assets. The capital risk management policy remains unchanged from the 30 June 2025 Annual Report. Note 20. Dividends Dividends Dividends paid during the financial year were as follows: Consolidated 2026 2025 $'000 $'000 Final dividend for the year ended 30 June 2025 of 7.0 cents (30 June 2024: 7.2 cents) per ordinary share 9,658 9,933 Interim dividend for the year ended 30 June 2026 of 7.5 cents (30 June 2025: 7.4 cents) per ordinary share 10,348 10,209 20,006 20,142 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 70
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 20. Dividends (continued) 35 (DRAFT 1) Dividends not recognised at year end In addition to the above and since the reporting date, the directors declared a fully franked dividend of 6.9 cents per ordinary share on 25 August 2026. This dividend will be paid on 1 October 2026. This equates to an estimated total distribution of $9,520,000. The financial effect of the dividend declared after the reporting date is not reflected in the financial statements for FY26 and will be recognised in the subsequent financial period. Franking credits Consolidated 2026 2025 $'000 $'000 Franking credits available for subsequent financial years based on a tax rate of 30% 5,438 9,358 The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for franking credits that will arise from the: - net payment of the amount of the provision for income tax at the reporting date; - payment of dividends recognised as a liability at the reporting date; - receipt of dividends recognised as receivables at the reporting date; and - franking credits acquired through business combinations. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 71
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 36 (DRAFT 1) Note 21. Financial risk management Financial risk management objectives The Group's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group may use interest rate swaps to partially hedge its exposure to the interest rate risk associated with its net debt. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange risk and ageing analysis for credit risk. Strategic risk management is carried out by the Board. The Audit and Risk Committee is responsible f or operational and financial risk management. Matters addressed by the Audit and Risk Committee include, but are not limited to, identification and analysis of the risk exposure of the Group and appropriate procedures, controls and risk limits. During the year ended 30 June 2026, senior executives of the Group: - identified, evaluated and hedged (where relevant) financial and operational risks within the Group's operating units; and - conferred with the Board regularly regarding the financial and operation al performance of the Group and strategic risk management matters, noting that eight Board meetings were held during FY26. Market risk Foreign currency risk The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from recognised financial assets and financial liabilities that are denominated in a currency that is not the Group's functional currency, the Australian dollar. The foreign exchange exposure relates to the investments in controlled entities in New Zealand. The foreign exchange gain or loss on translating the Group’s investment into Australian dollars at the end of the financial year is recognised in Other Comprehensive Income and accumulated in the foreign currency translation reserve. Price risk The Group is the ultimate beneficiary of the funds invested in various friendly societies and prepaid contract trusts, as described in note 2 and note 7. The majority of the funds are held in cash and fixed interest investments which have minimal price risk associated with the investment. Interest rate risk The Group's main interest rate risk arises from borrowings, cash at bank and contract assets. Borrowings, cash at bank and contract assets with variable interest rates expose the Group to interest rate risk. Borrowings and cash at bank obtained at fixed rates expose the Group to fair value interest rate risk. The Group’s interest rate risk target is to maintain a hedging level of approximately 40% of the net debt in connection with the Senior Debt (excluding the working capital facility) at any given reporting date. However, the Board may elect to increase or reduce the hedging level having regard to, among other things, the quantum of drawn debt, level of gearing and the historical and forecast interest rate environment at a particular point in time. The Group may use interest rate swaps to partially hedge its exposure to the interest rate risk associated with its net debt. As at 30 June 2026, the Group was 100% unhedged. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 72
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 21. Financial risk management (continued) 37 (DRAFT 1) As at the reporting date, the Group had the following variable rates on borrowings, cash at bank and contract assets (an analysis by maturities is provided in the liquidity risk section of this note): 2026 2025 Weighted average interest rate Balance Weighted average interest rate Balance Consolidated % $'000 % $'000 Cash at bank 3.78% 7,763 4.18% 8,987 Contract assets 2.25% 75,727 2.00% 75,841 Senior Debt * 5.74% (163,712) 6.24% (141,053) Net exposure to cash flow interest rate risk (80,222) (56,225) * The weighted average interest rate includes the establishment fees. An analysis by remaining contractual maturities is shown in 'liquidity and interest rate risk management' below. An official increase/decrease in interest rates of 100 (2025: 100) basis points would have a (unfavourable)/favourable effect on profit before tax of ($802,000)/$802,000 (2025: (unfavourable)/favourable effect of ($562,000)/$562,000) and (unfavourable)/favourable effect on equity of ($562,000)/$562,000 (2025: unfavourable/favourable ($394,000)/$394,000) per annum. The percentage change is based on the expected volatility of interest rates using market data and analyst forecasts. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The maximum exposure to credit risk at the reporting date to recognise financia l assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. Credit risk in relation to customers is highly dispersed and without concentra tion on any particular customer, region or segment. In respect of funeral services, in most cases the Group collects deposits at the time the service is arranged. Cemetery and memorial products are generally not delivered prior to the receipt of all of the amounts due. The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative across all customers of the Group based on historical collection rates and available forward-looking information. Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. Liquidity risk Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable. The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by co ntinuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Financing arrangements Unused borrowing facilities at the reporting date: Consolidated 2026 2025 $'000 $'000 Senior Debt (note 16) 161,288 133,947 The key terms and covenants relating to the Senior Debt financing arrangements are disclosed in note 16. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 73
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 21. Financial risk management (continued) 38 (DRAFT 1) Remaining contractual maturities The following tables detail the Group's remaining contractual maturity f or its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated - 2026 $'000 $'000 $'000 $'000 $'000 Non-derivatives Non-interest bearing Trade payables 4,374 - - - 4,374 Other payables 8,206 - - - 8,206 Contingent consideration 1,166 997 631 - 2,794 Interest-bearing Bank Loans 49,397 9,397 136,276 - 195,070 Lease liability 4,802 4,050 7,694 10,795 27,341 Total non-derivatives 67,945 14,444 144,601 10,795 237,785 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated - 2025 $'000 $'000 $'000 $'000 $'000 Non-derivatives Non-interest bearing Trade payables 5,158 - - - 5,158 Other payables 6,013 - - - 6,013 Contingent consideration 1,703 1,505 1,095 - 4,303 Interest-bearing Bank Loans 33,703 8,703 118,986 - 161,392 Lease liability 5,452 4,998 10,309 15,895 36,654 Total non-derivatives 52,029 15,206 130,390 15,895 213,520 The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above. Fair value of financial instruments Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 74
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 39 (DRAFT 1) Note 22. Fair value measurement Fair value hierarchy This section outlines the valuation techniques used to measure fair value of financial instruments which maximises the use of relevant observable inputs and minimises the use of unobservable inputs. The following tables detail the Group's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Unobservable inputs for the asset or liability Level 1 Level 2 Level 3 Total Consolidated - 2026 $'000 $'000 $'000 $'000 Liabilities Current Contingent consideration - - 1,137 1,137 Non-current Contingent consideration - - 1,504 1,504 Total liabilities - - 2,641 2,641 Level 1 Level 2 Level 3 Total Consolidated - 2025 $'000 $'000 $'000 $'000 Liabilities Current Contingent consideration - - 1,773 1,773 Non-current Contingent consideration - - 2,293 2,293 Total liabilities - - 4,066 4,066 There were no transfers between levels during the financial year. The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature. Valuation techniques for fair value measurements categorised within level 2 and level 3 Due to the nature of contingent consideration, it has been categorised as Level 3. Contingent consideration represents the obligation to pay additional amounts to vendors in respect of businesses acquired by the Group, subject to certain conditions being met. It is measured at the present value of the estimated liability. The fair value of contingent consideration is calculated on the expected future cash outflows. Generally, the contingent consideration is a performance based payment. These are reviewed at the reporting date to provide the expected future cash outflows for each contract. Upon completion of the review the future cash outflows are then discounted to present value using the Group's incremental borrowing rate. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 75
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 22. Fair value measurement (continued) 40 (DRAFT 1) Level 3 assets and liabilities Movements in level 3 assets and liabilities during the current and previous financial year are set out below: Contingent consideration Consolidated $'000 Balance at 1 July 2024 4,143 Payments made (2,126) Additions through business combinations 1,664 Movement due to changes in discount rate 304 Foreign exchange difference 81 Balance at 30 June 2025 4,066 Payments made (note 28) (1,092) Additions through business combinations (note 28) 831 Movement due to changes in discount rate 161 Amounts reversed (926) Foreign exchange difference (399) Balance at 30 June 2026 2,641 Fair value movements are recognised in the statement of profit or loss as movements in interest expense. Fair value movements for the period in relation to revaluation of contingent consideration amounted to $161,000 (2025: $304,000). A stress test of 150 basis points was conducted and found to have an immaterial impact. Note 23. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by Nexia Sydney Audit Pty Ltd, the auditor of the Company; Consolidated 2026 2025 $ $ Audit services Audit or review of the financial statements 303,800 290,300 There were no non-audit services provided during the current or previous financial year by the auditors. Note 24. Contingent liabilities The Group had $505,000 bank guarantees as at 30 June 2026 (30 June 2025: $1,294,000) in relation to premises the Group leases. The directors are not aware of any other contingent liabilities that existed as at the reporting date or on the date of appro val of the financial statements (2025: Nil). Note 25. Commitments Consolidated 2026 2025 $'000 $'000 Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment 3,803 8,705 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 76
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 41 (DRAFT 1) Note 26. Related party transactions Parent entity Propel Funeral Partners Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 29. Joint ventures Interests in joint ventures are set out in note 30. Key management personnel Disclosures relating to key management personnel ('KMP') are set out in note 27 and in the Remuneration Report included in the directors' report. Transactions with related parties There were no transactions with related parties during the current reporting period. Receivable from and payable to related parties There were no trade receivables from, or trade payables to, related parties at the current and previous reporting date. Loans to/from related parties There were no loans to, or from, related parties at the current and previous reporting date. Note 27. Key management personnel disclosures KMP are defined as those having authority and responsibility for planning, directing and controlling the activities of the Group, which includes the directors of Propel. The Board however does not manage day-to-day activities of the Group. The aggregate compensation in respect of the KMP is as follows: Consolidated 2026 2025 $ $ Short-term employee benefits 3,240,336 3,381,404 Post-employment benefits (superannuation) 104,437 124,760 Long-term benefits - long service leave 122,591 48,010 Long-term benefits - long-term incentive 72,760 (189,388) 3,540,124 3,364,786 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 77
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 42 (DRAFT 1) Note 28. Business combinations Jones & Co Funeral Services and Broadway Funeral Home In November 2025, the Group acquired the business and assets associated with Jones & Co Funeral Services and Broadway Funeral Home which provide funeral and related services from five locations in and around Tauranga and Matamata, New Zealand. Jacobsen In December 2025, the Group acquired the business and assets associated with Jacobsen Headstones which provides a memorial and headstone services from in and around Auckland, New Zealand. Collingwood Funeral Home In May 2026, the Group acquired the busi ness, assets and freehold property associated with Collingwood Funeral Home which provides funeral and related services from in and around Rotorua, New Zealand. Leishman Funeral Services In June 2026, the Group acquired the business, assets and freehold property associated with Leishman Funeral Services which provides funeral and related services from in and around Balclutha, New Zealand. Details of the purchase consideration, the net assets acquired and goodwill for the acquisitions referred to above are disclosed, in aggregate, below. The assets and liabilities recognised as a result of the acquisitions are as follows: Acquisitions Fair value $'000 Assets: Inventories 409 Other current assets 28 Property, plant and equipment 3,110 Right-of-use assets 845 Deferred tax assets 25 Liabilities: Provisions (79) Lease liabilities (832) Deferred monument works (162) Other liabilities (86) Lease make good provision (23) Net assets acquired 3,235 Goodwill 2,758 Acquisition-date fair value of the total consideration transferred 5,993 Representing: Cash paid to vendors 5,162 Contingent consideration (discounted) 831 5,993 Cash used to acquire businesses, net of cash acquired per statement of cash flows: Cash paid to vendors 5,162 Less: cash and cash equivalents - Net cash used 5,162 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 78
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 28. Business combinations (continued) 43 (DRAFT 1) Goodwill recognised is attributable to the locations and the profitability of the acquired businesses and will not be deducti ble for tax purposes. Total acquisition costs (including stamp duty) expensed to profit and loss was $1,318,000. The acquisition accounting was provisional as at 30 June 2026. Acquisitions 2026 $'000 Payment for purchase of business, net of cash acquired per cash flow statement Net cash used for the acquisitions 5,162 Acquisition costs 1,318 Contingent consideration payments (note 22) 1,092 Net cash used per statement of cash flows 7,572 Details of revenues and profit/(loss) are as follows: Acquisitions $'000 Revenue generated from acquisition date to 30 June 2026 2,570 Net profit after tax from acquisition date to 30 June 2026 336 If the four acquisitions had completed on 1 July 2025, it is estimated that the Group's revenue and net profit after tax for the year would have been approximately $230,192,000 and approximately $20,397,000 respectively. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 79
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 44 (DRAFT 1) Note 29. Interests in subsidiaries The financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Ownership interest Principal place of business / 2026 2025 Name Country of incorporation % % PFP Finance Pty Ltd Australia 100.0% 100.0% PFP Midco Pty Ltd Australia 100.0% 100.0% FV (TAS) Pty Ltd Australia 100.0% 100.0% Millingtons Cemetery Services Pty Ltd Australia 100.0% 100.0% Millingtons Funeral Services Pty Ltd Australia 100.0% 100.0% Devonport Funeral Services Pty Ltd Australia 100.0% 100.0% Phillip Stephens Funeral Services Pty Ltd Australia 100.0% 100.0% FV (QLD) Pty Ltd Australia 100.0% 100.0% South Burnett Funerals & Crematorium Pty Ltd Australia 100.0% 100.0% Gympie Funeral Services Pty Ltd Australia 100.0% 100.0% Leslie G Ross Funeral Services Pty Ltd Australia 100.0% 100.0% Premier Funeral Group Pty Ltd Australia 100.0% 100.0% Integrity Funeral Services Pty Ltd Australia 100.0% 100.0% FV (NSW) Pty Ltd Australia 100.0% 100.0% Coonamble Funeral Services Pty Ltd Australia 100.0% 100.0% Riverina Funeral Services Pty Ltd Australia 100.0% 100.0% WT Howard Funeral Services Pty Ltd Australia 100.0% 100.0% Tamworth & Gunnedah Funeral Services Pty Ltd Australia 100.0% 100.0% Meadow Funeral Group Pty Ltd Australia 100.0% 100.0% FV (VIC) Pty Ltd Australia 100.0% 100.0% Quinn Funeral Services Pty Ltd Australia 100.0% 100.0% Hall Funeral Services Pty Ltd Australia 100.0% 100.0% Handley Funerals Pty Ltd Australia 100.0% 100.0% Latrobe Valley Funeral Services Pty Ltd Australia 100.0% 100.0% F.W. Barnes Funeral Services Pty Ltd Australia 100.0% 100.0% Mildura Funeral Services Pty Ltd Australia 100.0% 100.0% FV (SA) Pty Ltd Australia 100.0% 100.0% Eyre Peninsula Funeral Services Pty Ltd Australia 100.0% 100.0% FV (WA) Pty Ltd Australia 100.0% 100.0% PFP (NZ) Ltd New Zealand 100.0% 100.0% Far North Funeral Services Ltd New Zealand 100.0% 100.0% Far North Memorial Gardens Ltd New Zealand 99.9% 99.9% Davis Services Group Ltd New Zealand 100.0% 100.0% Davis Funeral Services Ltd New Zealand 100.0% 100.0% Morris & Morris Ltd New Zealand 100.0% 100.0% Maunu Crematorium Ltd New Zealand 100.0% 100.0% Funerals Made Simple Ltd New Zealand 100.0% 100.0% FPT Pty Ltd Australia 100.0% 100.0% The Australian Funeral Properties Unit Trust Australia 100.0% 100.0% FPT (NZ) Pty Ltd Australia 100.0% 100.0% The New Zealand Funeral Properties Unit Trust Australia 100.0% 100.0% Wellington Funeral Directors Ltd New Zealand 100.0% 100.0% Erceg McIntyre Pty Ltd Australia 100.0% 100.0% FV (ACT) Pty Ltd Australia 100.0% 100.0% Norwood Park Pty Ltd Australia 100.0% 100.0% PFP Corporate Services Pty Ltd Australia 100.0% 100.0% Newhaven Funerals (North Queensland) Pty Ltd Australia 100.0% 100.0% Manning Great Lakes Memorial Gardens Pty Ltd Australia 100.0% 100.0% Grahams Funeral Services Ltd New Zealand 100.0% 100.0% ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 80
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 29. Interests in subsidiaries (continued) 45 (DRAFT 1) Ownership interest Principal place of business / 2026 2025 Name Country of incorporation % % Morleys Funerals Pty Ltd Australia 100.0% 100.0% Coventry Funeral Homes Pty Ltd Australia 100.0% 100.0% Pet Cremations (Townsville) Pty Ltd Australia 100.0% 100.0% Waikanae Funeral Home Ltd New Zealand 100.0% 100.0% Gregson & Weight Pty Ltd Australia 100.0% 100.0% Dils Funeral Services Ltd New Zealand 100.0% 100.0% PFP (NZ) Properties Ltd New Zealand 100.0% 100.0% Pet Heaven Services Pty Ltd Australia 100.0% 100.0% Pets RIP Pty Ltd Australia 100.0% 100.0% Cremation for Pets Pty Ltd Australia 100.0% 100.0% Charles Berry & Son Pty Ltd Australia 100.0% 100.0% State of Grace Ltd New Zealand 100.0% 100.0% Glenelg Funerals Pty Ltd Australia 100.0% 100.0% Edinburgh Investments Pty Ltd Australia 100.0% 100.0% Eagars Funerals Ltd New Zealand 100.0% 100.0% Carol & Terry Crawford Funerals Pty Ltd Australia 100.0% 100.0% Alfred James & Sons Pty Ltd Australia 100.0% 100.0% Sydney Farewells Pty Ltd Australia 100.0% 100.0% Walter Carter Funerals Pty Ltd Australia 100.0% 100.0% J Fraser & Sons Ltd New Zealand 100.0% 100.0% Community Funerals Pty Ltd Australia 100.0% 100.0% Wangaratta Funerals Pty Ltd Australia 100.0% 100.0% Pets at Rest Ltd New Zealand 100.0% 100.0% Seddon Park Funeral Home Ltd New Zealand 100.0% 100.0% Harbour City Funeral Home Ltd New Zealand 100.0% 100.0% Terry Longley & Son Ltd New Zealand 100.0% 100.0% Tong & Peryer Ltd New Zealand 100.0% 100.0% Penhall Funerals Pty Ltd Australia 100.0% 100.0% I C Mark Ltd New Zealand 100.0% 100.0% Howard & Gannon Funerals Ltd New Zealand 100.0% 100.0% Southern Funeral Home Ltd New Zealand 100.0% 100.0% Gladstone Valley Funerals Pty Ltd Australia 100.0% 100.0% Decra Art Ltd New Zealand 100.0% 100.0% L Robertson Memorials Ltd New Zealand 100.0% 100.0% Twentymans Funeral Services Ltd New Zealand 100.0% 100.0% Richmond Funeral Home Ltd New Zealand 100.0% 100.0% Jones & Company Ltd (formerly Before Use (NZ) (19) Ltd) New Zealand 100.0% 100.0% Broadway Funeral Home Ltd (formerly Before Use (NZ) (20) Ltd) New Zealand 100.0% 100.0% Bay Cremation Care Ltd (formerly Before Use (NZ) (21) Ltd) New Zealand 100.0% 100.0% Jacobsen Headstones Ltd New Zealand 100.0% - Collingwood Funeral Home Ltd New Zealand 100.0% - Leishman Funeral Services Ltd New Zealand 100.0% - Before Use (NZ) (29) Ltd New Zealand 100.0% - ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 81
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 46 (DRAFT 1) Note 30. Interests in joint ventures Interests in joint ventures are accounted for using the equity method of accounting. Information relating to joint ventures t hat are immaterial to the Group are set out below: Ownership interest Principal place of business / 2026 2025 Name Country of incorporation % % Osbornes Funeral Directors Ltd New Zealand 49.99% 49.99% On 29 May 2024, the Group acquired a 49.99% shareholding in Osbornes Funeral Directors Ltd. For the year ended 30 June 2026, the Group's share of profit from this joint venture was $22,000 (2025: loss of $35,000) which is recognised in other income, and the carrying value of the investment was $408,000 (2025: $437,000). There are no commitments or contingent liabilities in respect of this joint venture. Note 31. Deed of cross guarantee The following entities are party to a deed of cross guarantee under which each company guarantees the debts of the others: Propel Funeral Partners Limited PFP Midco Pty Ltd PFP Finance Pty Ltd FV (NSW) Pty Ltd FV (QLD) Pty Ltd Meadow Funeral Group Pty Ltd By entering into the deed, those wholly-owned entities have been relieved from the requirement to prepare financial statements and directors' reports under ASIC Corporations (wholly-owned Companies) Instrument 2016/785 (as amended) issued by the Australian Securities and Investments Commission ('ASIC'). The above companies represent a 'Closed Group' for the purposes of the Corporations Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by the Company, they also represent the 'Extended Closed Group'. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 82
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 31. Deed of cross guarantee (continued) 47 (DRAFT 1) Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial position of the 'Closed Group'. 2026 2025 Statement of profit or loss and other comprehensive income $'000 $'000 Revenue 11,917 12,547 Cost of sales and goods (3,592) (3,550) Employee costs (4,351) (4,289) Occupancy and facility expenses (2,237) (2,134) Advertising expenses (289) (331) Motor vehicle expenses (213) (182) Other expenses (1,372) (1,114) (137) 947 Dividend / distribution received 20,286 20,597 Net (loss)/gain on disposal of assets (2) 3 Other income 307 11 Depreciation expense (956) (1,071) Interest income 4,639 5,369 Interest expense (56) (82) Net financing charge on contract assets and contract liabilities 30 33 Net foreign exchange losses (192) (49) Profit before income tax expense 23,919 25,758 Income tax expense (625) (1,307) Profit after income tax expense 23,294 24,451 Other comprehensive income Foreign currency translation (9,418) 1,385 Other comprehensive income for the year, net of tax (9,418) 1,385 Total comprehensive income for the year 13,876 25,836 2026 2025 Equity - accumulated losses $'000 $'000 Accumulated losses at the beginning of the financial year (7,719) (12,028) Profit after income tax expense 23,294 24,451 Dividends paid (20,006) (20,142) Accumulated losses at the end of the financial year (4,431) (7,719) ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 83
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 31. Deed of cross guarantee (continued) 48 (DRAFT 1) 2026 2025 Statement of financial position $'000 $'000 Current assets Cash and cash equivalents 1,477 1,385 Contract assets 2,014 1,962 Trade and other receivables 2,411 2,263 Inventories 233 236 Prepayments 75 79 Current tax assets - 666 6,210 6,591 Non-current assets Property, plant and equipment 2,445 2,375 Right-of-use assets 1,182 2,152 Goodwill 11,421 11,421 Deferred tax assets 629 964 Investment in subsidiaries and unit trusts 117,376 115,199 Other assets 232,738 239,874 365,791 371,985 Total assets 372,001 378,576 Current liabilities Trade and other payables 625 650 Income tax 502 - Provisions 371 297 Lease liabilities 523 566 Contract liabilities 1,994 1,969 4,015 3,482 Non-current liabilities Lease liabilities 747 1,682 Deferred tax liabilities 135 172 Provisions 100 107 982 1,961 Total liabilities 4,997 5,443 Net assets 367,004 373,133 Equity Issued capital 380,844 380,844 Reserves (9,409) 8 Accumulated losses (4,431) (7,719) Total equity 367,004 373,133 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 84
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 49 (DRAFT 1) Note 32. Reconciliation of profit after income tax to net cash from operating activities Consolidated 2026 2025 $'000 $'000 Profit after income tax expense for the year 19,919 20,399 Adjustments for: Depreciation and amortisation 16,077 15,740 Share-based payment expenses (74) 164 Net loss/(gain) on disposal of assets 647 (88) Foreign exchange differences 239 45 Loss on movement in discount rate of earn-out 161 304 Net financing charge on contract assets and liabilities 62 461 Acquisition costs 1,318 962 Non-cash income (1,697) (421) Other expenses (397) (548) Change in operating assets and liabilities: Decrease in trade and other receivables 649 578 Increase in inventories (68) (579) Decrease in deferred tax assets 1,361 1,250 Decrease/(increase) in prepayments 56 (25) Increase in trade and other payables 1,408 1,686 (Decrease)/increase in provision for income tax (610) 1,777 (Decrease) in deferred tax liabilities (932) (1,147) (Decrease) in employee benefits (27) (567) (Decrease) in other provisions (88) (3) Net cash from operating activities 38,004 39,988 Note 33. Changes in liabilities arising from financing activities Opening Non-cash Additions through business Foreign Closing Consolidated 2026 balance Cash flows movement Additions combinations exchange balance Senior Debt 141,053 22,659 - - - - 163,712 Lease liabilities 31,345 (4,778) (5,362) 2,206 832 (711) 23,532 Opening Non-cash Additions through business Foreign Closing Consolidated 2025 balance Cash flows movement Additions combinations exchange balance Hire purchase liabilities 5 (5) - - - - - Senior Debt 113,153 27,900 - - - - 141,053 Lease liabilities 32,517 (4,597) 1,000 1,083 1,205 137 31,345 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 85
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 50 (DRAFT 1) Note 34. Earnings per share Consolidated 2026 2025 $'000 $'000 Profit after income tax attributable to the shareholders of Propel Funeral Partners Limited 19,919 20,399 Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 137,973,594 137,958,171 Weighted average number of ordinary shares used in calculating diluted earnings per share 137,973,594 137,958,171 Cents Cents Basic earnings per share 14.44 14.79 Diluted earnings per share 14.44 14.79 At 30 June 2026, the Group had 435,649 performance rights on issue. These are contingently issuable ordinary shares that were excluded from the calculation of diluted earnings per share because the relevant non -market performance (vesting) conditions were not expected to be satisfied at the reporting date. They may potentially dilute earnings per share in future periods. Note 35. Share-based payments During the years ended 30 June 2025 and 30 June 2026 (‘FY25 and FY26’ respectively), the Company granted LTI awards to eligible executives in the form of performance rights over ordinary shares of the Company on a one -for-one basis. The performance rights are granted at no cost and no amount is payable upon vesting or exercise. The righ ts do not carry voting rights prior to exercise. For vested performance rights, participants are entitled to receive dividends declared and paid between the date of vesting and the date of exercise, which will be settled by way of additional Propel shares or, at t he discretion of the Board, in cash. The number of performance rights allocated to each participant is calculated by applying the maximum LTI opportunity percentage to the executive’s total fixed remuneration (‘TFR’), divided by the volume -weighted average price (‘VWAP’) of Propel shares for the three months ending on the last business day of the prior financial year. The rights are subject to a non- market performance condition based on Adjusted EPS compound annual growth rate (‘CAGR’) over the applicable three-year performance period. As at 30 June 2026, no performance rights had vested or been exercised. During the year, the Group reversed $164,000 of prior year share-based payment expense for awards no longer expected to vest and recognised $89,785 of expense in respect of the FY26 performance rights. Set out below are summaries of performance rights granted under the plan: 2026 Balance at Balance at Grant date Performance period end date the start of the year Granted Exercised Expired/ forfeited the end of the year 03/06/2025 30/06/2027 149,453 - - - 149,453 03/07/2025 30/06/2028 - 82,795 - - 82,795 01/09/2025 30/06/2028 - 36,603 - - 36,603 13/11/2025 30/06/2028 - 166,798 - - 166,798 149,453 286,196 - - 435,649 ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 86
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 35. Share-based payments (continued) 51 (DRAFT 1) 2025 Balance at Balance at Grant date Performance period end date the start of the year Granted Exercised Expired/ forfeited the end of the year 03/06/2025 30/06/2027 - 149,453 - - 149,453 - 149,453 - - 149,453 The grant -date fair value of performance rights granted during the year was determined by reference to the Company's ordinary share price at grant date (non-market conditions) in accordance with AASB 2. Fraser Henderson’s FY25 award was approved at Propel’s 2025 Annual General Meeting. Further information about the Group's long-term incentive arrangements is provided in the Remuneration Report. Note 36. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Parent 2026 2025 $'000 $'000 Profit after income tax 20,405 20,510 Other comprehensive income for the year, net of tax - - Total comprehensive income 20,405 20,510 Statement of financial position Parent 2026 2025 $'000 $'000 Total current assets 1,265 1,748 Total assets 627,965 587,193 Total current liabilities 503 708 Total liabilities 265,975 225,602 Net assets 361,990 361,591 Equity Issued capital 380,844 380,844 Reserves 11 11 Accumulated losses (18,865) (19,264) Total equity 361,990 361,591 The parent entity is a party to a deed of cross guarantee as disclosed in note 31. In addition, it has entered into a tax and GST sharing agreement whereby it guarantees the income tax and GST debts of its subsidiaries. In the ordinary course of business, the parent entity has also guaranteed the performance of some of its subsidiaries. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 87
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Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Propel Funeral Partners Limited Notes to the consolidated financial statements 30 June 2026 Note 36. Parent entity information (continued) 52 (DRAFT 1) Contingent liabilities The parent entity had a $167,000 bank guarantee in relation to leased premises of one of its subsidiaries as at 30 June 2026 (2025: $167,000). Capital commitments The parent entity had no capital commitments for property, plant and equipment as at 30 June 2026 (2025: $Nil). Material accounting policy information The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except for the following: - investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity; and - dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment. Note 37. Events after the reporting period On 25 August 2026, the directors declared a fully franked final dividend in connection with FY26 of 6.9 cents per ordinary share. Total dividends declared in connection with FY26 were 14.4 cents per share (FY25: 14.4 cents per share), fully franked, which represents approximately 97% of FY26 Distributable Earnings (NPAT adjusted for certain non-cash and non-operating items). Subsequent to year end, the Group acquired the business, assets and freehold property associated with Evans which operates in and around Gisborne, New Zealand, for $4,715,000. Evans generates approximately $1,753,000 of revenue, per annum. Apart from the events disclosed above, no other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 88
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Propel Funeral Partners Limited Consolidated entity disclosure statement As at 30 June 2026 53 (DRAFT 1) Entity name Body corporate, partnership or trust Country of incorporation % of share capital held Australian or foreign tax resident within the meaning of the ITAA 1997 Jurisdiction for foreign tax resident Propel Funeral Partners Limited Body corporate Australia Australian resident N/A PFP Finance Pty Ltd Body corporate Australia 100.0% Australian resident N/A PFP Midco Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (TAS) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Millingtons Cemetery Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Millingtons Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Devonport Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Phillip Stephens Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (QLD) Pty Ltd Body corporate Australia 100.0% Australian resident N/A South Burnett Funerals & Crematorium Pty Ltd Body corporate Australia 100.0% Australian resident N/A Gympie Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Leslie G Ross Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Premier Funeral Group Pty Ltd Body corporate Australia 100.0% Australian resident N/A Integrity Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (NSW) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Coonamble Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Riverina Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A WT Howard Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Tamworth & Gunnedah Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Meadow Funeral Group Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (VIC) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Quinn Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Hall Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Handley Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Latrobe Valley Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A F.W. Barnes Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Mildura Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (SA) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Eyre Peninsula Funeral Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (WA) Pty Ltd Body corporate Australia 100.0% Australian resident N/A PFP (NZ) Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Far North Funeral Services Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Far North Memorial Gardens Ltd Body corporate New Zealand 99.9% Foreign resident New Zealand Davis Services Group Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Davis Funeral Services Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Morris & Morris Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Maunu Crematorium Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Funerals Made Simple Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand FPT Pty Ltd Body corporate Australia 100.0% Australian resident N/A The Australian Funeral Properties Unit Trust1 Trust Australia N/A Australian resident N/A FPT (NZ) Pty Ltd Body corporate Australia 100.0% Australian resident N/A The New Zealand Funeral Properties Unit Trust1 Trust Australia N/A Australian resident N/A Wellington Funeral Directors Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Erceg McIntyre Pty Ltd Body corporate Australia 100.0% Australian resident N/A FV (ACT) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Norwood Park Pty Ltd Body corporate Australia 100.0% Australian resident N/A PFP Corporate Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A 1 The trusts are part of the Group's Australian tax consolidated group and the relevant trustees are Australian residents. Consolidated Entity Disclosure Statement as at 30 June 2026 ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 89
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Consolidated Entity Disclosure Statement as at 30 June 2026Propel Funeral Partners Limited Consolidated entity disclosure statement As at 30 June 2026 54 (DRAFT 1) Entity name Body corporate, partnership or trust Country of incorporation % of share capital held Australian or foreign tax resident within the meaning of the ITAA 1997 Jurisdiction for foreign tax resident Newhaven Funerals (North Queensland) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Manning Great Lakes Memorial Gardens Pty Ltd Body corporate Australia 100.0% Australian resident N/A Grahams Funeral Services Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Morleys Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Coventry Funeral Homes Pty Ltd Body corporate Australia 100.0% Australian resident N/A Pet Cremations (Townsville) Pty Ltd Body corporate Australia 100.0% Australian resident N/A Waikanae Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Gregson & Weight Pty Ltd Body corporate Australia 100.0% Australian resident N/A Dils Funeral Services Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand PFP (NZ) Properties Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Pet Heaven Services Pty Ltd Body corporate Australia 100.0% Australian resident N/A Pets RIP Pty Ltd Body corporate Australia 100.0% Australian resident N/A Cremation for Pets Pty Ltd Body corporate Australia 100.0% Australian resident N/A Charles Berry & Son Pty Ltd Body corporate Australia 100.0% Australian resident N/A State of Grace Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Glenelg Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Edinburgh Investments Pty Ltd Body corporate Australia 100.0% Australian resident N/A Eagars Funerals Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Carol & Terry Crawford Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Alfred James & Sons Pty Ltd Body corporate Australia 100.0% Australian resident N/A Sydney Farewells Pty Ltd Body corporate Australia 100.0% Australian resident N/A Walter Carter Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A J Fraser & Sons Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Community Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Wangaratta Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Pets at Rest Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Seddon Park Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Harbour City Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Terry Longley & Son Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Tong & Peryer Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Penhall Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A I C Mark Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Howard & Gannon Funerals Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Southern Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Gladstone Valley Funerals Pty Ltd Body corporate Australia 100.0% Australian resident N/A Decra Art Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand L Robertson Memorials Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Twentymans Funeral Services Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Richmond Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Jones & Company Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Broadway Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Bay Cremation Care Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Jacobsen Headstones Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Collingwood Funeral Home Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Leishman Funeral Services Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand Before Use (NZ) (29) Ltd Body corporate New Zealand 100.0% Foreign resident New Zealand ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 90
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Propel Funeral Partners Limited Directors' declaration 30 June 2026 55 (DRAFT 1) In the directors' opinion: ● the attached consolidated financial statements and notes comply with the Corporations Act 2001 (Cth) (‘Corporations Act’), the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; ● the attach ed consolidated financial statements and notes comply with International Financial Reporting Standards Accounting Standards as issued by the International Accounting Standards Board as described in note 2 to the consolidated financial statements; ● the attached consolidated financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2026 and of its performance for the financial year ended on that date; ● there are reasonable grounds to believe that the Co mpany will be able to pay its debts as and when they become due and payable; ● at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee described in note 31 to the consolidated financial statements. ● the information disclosed in the attached consolidated entity disclosure statement is true and correct. The directors have been given the declarations required by section 295A of the Corporations Act. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act. On behalf of the directors ___________________________ ___________________________ ___________________________ Naomi Edwards Lilli Rayner Fraser Henderson Chair Co-CEO Co-CEO 25 August 2026 Directors’ Declaration ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 91
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Independent Auditor’s Report to the Members of Propel Funeral Partners Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Propel Funeral Partners Limited (the Company and its subsidiaries (the Group)), which comprises the consolidated statement of financial position as at 30 June 2026, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information , the consolidated entity disclosure statement and the Directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: i) giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its financial performance for the year then ended; and ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the ‘auditor’s responsibilities for the audit of the financial report’ section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors of the Company, would be in the same terms if given to the Directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Independent Auditor’s Report ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 92
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Independent Auditor’s Report Key audit matter How our audit addressed the key audit matter Impairment testing of goodwill Refer to note 14. The Group has acquired numerous funeral service, cremation and cemetery businesses in Australia and New Zealand over the years. Goodwill has been recognised on acquisition and represents a material balance in the statement of financial position. It is a requirement of AASB136 - Impairment of Assets that goodwill is tested at least annually for impairment by management. We consider the carrying value of goodwill to be a key audit matter due to: • the size of the balance and the significance for users’ understanding of the financial statements; • the level of subjectivity involved in determining whether goodwill balances are impaired; • the geographic spread of the Group’s activities increasing the risk in determining the Group’s CGU’s and for Goodwill impairment purposes; and • the complexity of audit procedures required in challenging the assertions put forward by management. Our procedures included, amongst others: • assessed management’s determination of the Group’s CGUs based on our understanding of the nature of the Group’s business. We also analysed the internal reporting of the Group to assess how results were monitored and reported; • ensured the identification of cash flows attributable to each CGU and the assets supporting those cash flows are consistent, including allocation of corporate assets and cash flows to each of the CGUs; • compared the FY2027 forecasted cash flows used in the impairment model with the actual performance and forecasts for FY2026; • assessed the assumptions within the 5-year cash flow forecasts for each CGU by understanding the key factors and underlying drivers for growth, including inflation and industry trends, in the context of the Group’s future plans; • assessed the discount rate used for each CGU by comparing it to our view of an acceptable range based on market data, comparable companies and industry research; • performed sensitivity analysis (cash flow growth rate, terminal growth rate, discount rate) for each CGU; and • assessed the appropriateness of the disclosures in the financial statements. Business combinations and acquisition accounting Refer to note 28. The Group’s recent acquisitions are required to be accounted for under AASB 3 – Business Combinations. There is a risk that the acquisitions of these entities have not been accounted for in accordance with AASB 3, which includes the determination of identifiable intangible assets. As part of the sale deed for business acquisitions, sometimes contingent consideration is attached to the purchase of these businesses. Our procedures included, amongst others: • obtained information from management supporting the allocation of identifiable intangible assets and goodwill as set out in the Purchase Price Allocation prepared by management, including assessing the independence of external experts and the reasonableness of assumptions used; • assessed the treatment of transactions costs; • tested that deferred tax liabilities arising from the transactions are accurately recognised; • assessed the provision for contingent consideration in line with the terms of the purchase agreements ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 93
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Independent Auditor’s Report Key audit matter How our audit addressed the key audit matter This contingent consideration requires significant estimation and rely on the existence of future events occurring. We consider the business combinations and accounting for acquisitions as a key audit matter due to: • the level of estimation involved in assessing the fair value of assets acquired in a business combination and the reliance on a management’s expert in determining this valuation; • the risk that all assets and liabilities on acquisition are not identified and correctly recognised; and • the level of estimation involved in the calculation of contingent consideration provisions including the probabilities that targets will be achieved. including a consideration of the discount rates used and the presentation of current and non—current liabilities; • assessed the underlying performance of the individual entity and management’s assumptions at the balance date to ensure the probability of the contingent consideration targets being met is reasonable; and • assessed the appropriateness of the disclosures in the financial statements. Other information The Directors are responsible for the other information. The other information comprises the information in Propel Funeral Partners Limited’s annual report for the year ended 30 June 2026, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard. Directors’ responsibility for the financial report The Directors of the Company are responsible for the preparation of: a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the Directors determine is necessary to enable the preparation of: i) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 94
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Independent Auditor’s Report ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibility for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at The Australian Auditing and Assurance Standards Board website at: https://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 25 to 35 of the Directors’ Report for the year ended 30 June 2026. In our opinion, the Remuneration Report of Propel Funeral Partners Limited for the year ended 30 June 2026, complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Nexia Sydney Audit Pty Ltd Mark Boyle Director Dated: 25 August 2026 Sydney ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 95
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The shareholder information set out below was applicable as at 16 July 2026: Number of Equity Security Holders Number Shares on issue 137,973,594 Distribution of Equity Securities Size of Holding Number of Shareholders Ordinary Shares % of Issued Capital 100,001 and over 90 108,399,286 78.57 10,001 to 100,000 761 18,841,007 13.65 5,001 to 10,000 744 5,639,766 4.09 1,001 to 5,000 1,557 4,306,627 3.12 1 to 1,000 1,986 786,908 0.57 Total 5,138 137 ,973,594 100.00 Unmarketable Parcel There were 497 shareholders with unmarketable parcels totalling 42,687 shares based on the closing market price as of 16 July 2026. Twenty Largest Shareholders On 16 July 2026, the 20 largest shareholders were as follows: Shareholder Number of Ordinary Shares % of Issued Capital J P Morgan Nominees Australia Pty Limited 20,661,905 14.98 Citicorp Nominees Pty Limited 17,607,637 12.76 DKH TI Pty Ltd 14,732,667 10.68 HSBC Custody Nominees (Australia) Limited 10,945,338 7.93 BNP Paribas Noms Pty Ltd <Global Markets> 6,997,428 5.07 BNP Paribas Nominees Pty Ltd 3,592,197 2.60 BNP Paribas Noms Pty Ltd <Agency Lending A/C> 2,583,318 1.87 Hart & Miley No. 1 Pty Ltd 1,767,098 1.28 Ruapehu Holdings Pty Limited 1,746,497 1.27 Netwealth Investments Limited 1,567,724 1.14 Nibla No 1 Pty Ltd 1,518,222 1.10 Mr Andrew Philip John Wade & Mrs Rosanna Wade 1,430,917 1.04 Comann Investments Pty Ltd 1,137,817 0.82 Invia Custodian Pty Limited 1,045,000 0.76 Nibla No. 1 Pty Limited 909,309 0.66 Tomdachoille Pty Ltd 903,142 0.65 Stephen Dil + Heidi Dil + Prince & Partners Trustee Company Limited 800,833 0.58 BNP Paribas Noms (NZ) Ltd 733,610 0.53 Lymal Pty Ltd 731,743 0.53 Henkay TI Pty Limited 726,226 0.53 Shareholder Information ANNUAL REPORT 2026PROPEL FUNERAL PARTNERS LIMITED 96
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Shareholder Information Securities subject to Voluntary Escrow The Company had the following restricted securities on issue as at 16 July 2026: Class Number of Shares % of Issued Capital Date that the escrow period ends PFPESC0826 280,532 0.20 11 August 2026 PFPESC0926 58,685 0.04 1 September 2026 PFPESC0127 19,086 0.01 22 January 2027 PFPESC0327 44,971 0.03 4 March 2027 PFPESC0727 84,534 0.06 16 July 2027 PFPESC0328 15,245 0.01 31 March 2028 Substantial Holders The following table shows (as at 16 July 2026) the details of each substantial shareholder who, together with their associates, notified Propel under section 671B of the Corporations Act 2001 (Cth), that they hold 5% or more of voting rights in Propel’s shares: Shareholder Number of Fully Paid ordinary Shares % of Issued Capital (as at date of notice) Date of last notice DKH TI Pty Ltd 14,732,667 12.86 27 October 2021 Lennox Capital Partners Group 7,852,683 5.69 17 October 2025 Washington H. Soul Pattinson and Company Limited and Subsidiaries 6,944,482 5.03 14 May 2026 Voting rights In accordance with the Company’s constitution, each member present at a meeting, whether in person or by proxy, or any power of attorney or a duly authorised representative in the case of a corporate member, shall have one vote on a show of hands and one vote for each fully paid ordinary share on a poll. Unquoted Equity Securities As at 16 July 2026, there were 435,649 performance rights over unissued ordinary shares. On market buy-back There is no current on market buy back in relation to the Company’s securities. Section 611(7) of the Corporations Act There are no issues of securities approved for the purposes of Item 7 of section 611 of the Corporations Act which have yet to be completed. On market purchase of securities During the 12 months ended 30 June 2026, no securities were purchased on-market under or for the purpose of any employee incentive scheme, to satisfy the entitlements of the holders of options or other rights to acquire securities granted under an employee incentive scheme or otherwise. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 97
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Corporate Directory Propel Funeral Partners Limited ACN 616 909 310 Registered Office Level 18.03 135 King Street Sydney NSW 2000 Phone: 02 8514 8600 Postal Address Level 18.03 135 King Street Sydney NSW 2000 Directors Naomi Edwards (Non-Executive Chair) Brian Scullin (Non-Executive Director) Jennifer Lang (Non-Executive Director) Neil Little (Non-Executive Director) Fraser Henderson (Executive Director) Lilli Rayner (Executive Director) Company Secretary Fraser Henderson Share Registry Services MUFG Corporate Markets Locked Bag A14 Sydney South NSW 1235 Phone: 1300 554 474 Fax: 02 9287 0303 Auditor Nexia Sydney Audit 1 Market Street Sydney NSW 2000 Website www.propelfuneralpartners.com.au Corporate Governance Statement The Corporate Governance Statement, as at 25 August 2026, has been approved by the Board and is available on the Company’s website: (https://investors.propelfuneralpartners.com.au/investor- centre/?page=corporate-governance) Workplace Gender Equality Report In accordance with the Workplace Gender Equality Act 2012, Propel lodged its latest Workplace Gender Equality Report in May 2026. The report is available on the Company’s website. ANNUAL REPORT 2026 PROPEL FUNERAL PARTNERS LIMITED 99