Annual financial statement
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PGG Wrightson Ngā Whakapuakanga Pūtea Hira Key Financial Disclosures Consolidated Financial Statements for the year ended 30 June 2026 Ngā Tauākī ā - Pūtea Tōpū mō te tau i mutu i te 30 Hune 2026 PGG Wrightson 175 YEARS 1851.2026 Mott's Premium Produce harvesting parsnips near Tangiwai , Manawatu - Whanganui . PGG Wrightson Helping grow the country
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PGG WRIGHTSON LIMITED Directors’ Responsibility Statement For the year ended 30 June 2026 The Directors are responsible for ensuring that the consolidated financial statements give a true and fair view of the financial position of PGG Wrightson Limited and its controlled entities (together the “Group”) as at 30 June 2026 and the financial performance and cash flows for the year ended on that date. The Directors consider that the consolidated financial statements of the Group have been prepared using appropriate accounting policies, consistently applied and supported by reasonable judgements and estimates and that all of the relevant financial reporting and accounting standards have been followed. The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the determination of the financial position of the Group and facilitate compliance of the consolidated financial statements with the Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013. The Directors are pleased to present the consolidated financial statements for the Group set out on pages 1 to 46 for the year ended 30 June 2026. The consolidated financial statements contained on pages 1 to 46 have been authorised for issue on 10 August 2026. For and on behalf of the Board. John Nichol Wilson Liu Chair Director and Audit Committee Chair
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PGG WRIGHTSON LIMITED Consolidated Statement of Profit or Loss For the year ended 30 June 2026 1 | KEY FINANCIAL DISCLOSURES 2026 2025 NOTE $000 $000 Operating revenue 1 1,074,384 975,344 Cost of sales 2 (787,517) (720,347) Gross profit 286,867 254,997 Other income 399 952 Employee expenses (161,290) (146,637) Other operating expenses 3 (61,666) (53,181) Operating EBITDA 28C 64,310 56,131 Non-operating gains/(losses) 4 221 1,119 Impairment and fair value gains/(losses) 5 - - Depreciation and amortisation expense (34,791) (31,066) EBIT 28C 29,740 26,184 Net interest expense 6 (10,780) (11,186) Foreign exchange gain/(loss) 6 641 821 Fair value gain/(loss) on foreign exchange derivatives 6 1,430 (1,827) Profit before income tax 21,031 13,992 Income tax expense 7 (5,460) (3,328) Net profit after tax 15,571 10,664 Basic and diluted earnings per share (EPS) 2026 2025 NOTE $000 $000 Basic and diluted EPS 8 0.206 0.141 The accompanying notes form an integral part of these consolidated financial statements.
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2 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Consolidated Statement of Other Comprehensive Income For the year ended 30 June 2026 2026 2025 NOTE $000 $000 Net profit after tax 15,571 10,664 Other comprehensive income/(loss) Items that will not be reclassified to profit or loss Remeasurements of defined benefit liability (261) 585 Tax on remeasurements of defined benefit liability 7 (98) (273) Total other comprehensive income/(loss) for the period (359) 312 Total comprehensive income for the period 15,212 10,976 The accompanying notes form an integral part of these consolidated financial statements.
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3 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Segment Report For the year ended / as at 30 June 2026 A. Operating segments The Group has two primary operating segments, Agency and Retail & Water, which are the Group's strategic divisions. These operating segments operate within New Zealand. The two operating segments offer different products and services, and are managed separately because they require different skills, technology and marketing strategies. Within each segment, further business unit analysis may be provided to management where there are significant differences in the nature of activities. The Chief Executive Officer and Chairman of the Board review internal management reports on each strategic business unit on at least a monthly basis. The Group's segments are described below: – Agency: This segment derives its revenue primarily from commissions in respect of rural Livestock, Wool and Real Estate transactions. This segment also derives revenue from wool and velvet product sales, and interest revenue from its GO-STOCK receivables (refer to Note 12 GO-STOCK Receivables for further explanation regarding this programme). – Retail & Water: This segment includes the Rural Supplies and Fruitfed Supplies retail operations, Agritrade, PGG Wrightson Water, ancillary sales support and supply chain functions. This segment derives its revenue primarily from the sale of goods as well as the design, installation and servicing of irrigation solutions. – Other (non-operating): Other relates to certain Group Corporate activities including Governance, Finance, Treasury, Risk and Assurance, and other support services (such as corporate property services and marketing). The Marketing function derives sales revenue from the Group's customer loyalty and on-charging programmes. Assets and liabilities allocated to each business unit combine to form total assets and liabilities for the Agency and Retail & Water business segments. Certain other assets and liabilities are held at a Corporate level including those for the Corporate functions noted above. From 1 July 2025 the group transferred its intangible ERP asset internally from the Other (non-operating) segment to the Agency and Retail & Water operating segments. The profit or loss for each business unit combines to form total profit or loss of the Agency and Retail & Water business segments. Certain other revenues and expenses are recorded at the Corporate level for the Corporate functions noted above. Corporate costs allocation The Group allocates certain Corporate costs to an operating segment where they can be directly attributed to that segment or using the following methods: – IT hardware, support, licence and other costs are allocated on a per user basis. – Property costs which are not directly attributable are allocated on a property space utilisation basis. – Business operations costs (Accounts Payable, Accounts Receivable, Call Centre) are allocated based on FTE usage by each operating segment or transactional volumes. Credit Services costs are allocated to the operating segment to which the overdue accounts relate. From 1 July 2025 the Group began internally allocating interest expense to the operating segments based on capital employed (excluding equity) with this allocation recorded within net interest expense. Comparative amounts have been updated to reflect this change. Other costs such as non-operating gains/losses, impairment and fair value gains/losses, net interest expense, foreign exchange items and income tax expense are not fully allocated by the Group across the operating segments. The Group Governance, Finance, Treasury, and Risk and Assurance functions continue to be reported outside of the operating segments i.e. within Other (non-operating). B. Geographical segment The Group operates within New Zealand only and its revenue is derived primarily from New Zealand.
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4 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Segment Report (continued) For the year ended / as at 30 June 2026 C. Operating segment information OTHER AGENCY RETAIL & WATER (NON–OPERATING) TOTAL 2026 2025 2026 2025 2026 2025 2026 2025 $000 $000 $000 $000 $000 $000 $000 $000 Sales revenue 86,383 84,977 830,398 759,215 1,429 1,157 918,210 845,349 Commission revenue 126,165 107,938 87 88 55 30 126,307 108,056 Construction contract revenue – – 18,900 12,368 – – 18,900 12,368 Interest revenue on GO-STOCK receivables 8,011 7,181 – – – – 8,011 7,181 Interest revenue on overdue debtor accounts 314 427 1,424 891 9 37 1,747 1,355 Sublease income 582 434 423 402 204 199 1,209 1,035 Total external operating revenues 221,455 200,957 851,232 772,964 1,697 1,423 1,074,384 975,344 Cost of sales (101,826) (98,086) (684,801) (621,575) (890) (686) (787,517) (720,347) Gross profit 119,629 102,871 166,431 151,389 807 737 286,867 254,997 Other income 405 952 – – (6) – 399 952 Employee expenses (60,277) (51,367) (73,524) (68,780) (27,489) (26,490) (161,290) (146,637) Other operating expenses (30,789) (28,994) (48,431) (40,459) 17,554 16,272 (61,666) (53,181) Operating EBITDA 28,968 23,462 44,476 42,150 (9,134) (9,481) 64,310 56,131 Non-operating gains/(losses) 9 1,166 61 (112) 151 65 221 1,119 Impairment and fair value gains/(losses) – – – – – – – – Depreciation and amortisation expense (10,641) (9,875) (21,048) (17,329) (3,102) (3,862) (34,791) (31,066) EBIT 18,336 14,753 23,489 24,709 (12,085) (13,278) 29,740 26,184 Net interest expense (7,766) (8,470) (11,049) (10,938) 8,035 8,222 (10,780) (11,186) Foreign exchange gain/(loss) 29 863 617 (46) (5) 4 641 821 Fair value gain/(loss) on foreign exchange derivatives 387 (1,611) 1,042 (216) 1 – 1,430 (1,827) Profit/(loss) before income tax 10,986 5,535 14,099 13,509 (4,054) (5,052) 21,031 13,992 Income tax benefit/(expense) (3,222) (2,196) (4,018) (5,786) 1,780 4,654 (5,460) (3,328) Net profit/(loss) after tax 7,764 3,339 10,081 7,723 (2,274) (398) 15,571 10,664 Total segment assets 284,806 234,147 300,415 249,439 15,117 46,094 600,338 529,680 Total segment liabilities (153,092) (104,908) (166,727) (146,372) (97,952) (104,590) (417,771) (355,870) Capital expenditure (additions to non-current assets) 6,768 4,724 20,601 5,645 1,925 12,510 29,294 22,879 The accompanying notes form an integral part of these consolidated financial statements.
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5 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Consolidated Statement of Cash Flows For the year ended 30 June 2026 2026 2025 NOTE $000 $000 Cash flows from operating activities Cash was provided from: Receipts from customers 1,023,492 916,631 Dividends received 7 6 Interest received 10,260 8,921 Income tax received – 44 1,033,759 925,602 Cash was applied to: Payments to suppliers and employees (968,797) (903,108) Lump sum contribution to the PGG Wrightson Employee Benefits Plan (459) (308) Interest paid 6 (5,229) (5,379) Interest paid on lease liabilities 6 (4,524) (4,410) Income tax paid (2,157) – (981,166) (913,205) Net cash inflow/(outflow) from operating activities 52,593 12,397 Cash flows from investing activities Cash was provided from: Proceeds from sale of property, plant and equipment 1,561 2,808 Dividend received from jointly controlled entity 140 392 1,701 3,200 Cash was applied to: Purchase of property, plant and equipment (5,654) (6,929) Purchase of intangibles (931) (10,499) Acquisition of subsidiary net of cash acquired 15 (19,660) – Advance to jointly controlled entity – (17) (26,245) (17,445) Net cash inflow/(outflow) from investing activities (24,544) (14,245) Cash flows from financing activities Cash was provided from: Increase in external borrowings 9 92,000 25,182 92,000 25,182 Cash was applied to: Dividends paid to shareholders (6,455) (1,899) Repayment of external borrowings 9 (88,182) – Repayment of principal portion of lease liabilities (24,030) (22,608) (118,667) (24,507) Net cash inflow/(outflow) from financing activities (26,667) 675 Net increase/(decrease) in cash held 1,382 (1,172) Opening cash and cash equivalents at the beginning of period 2,613 3,785 Cash and cash equivalents at the end of the period 9 3,995 2,613 The accompanying notes form an integral part of these consolidated financial statements.
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6 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Reconciliation of Net Profit After Tax with Net Cash Flow from Operating Activities For the year ended 30 June 2026 2026 2025 $000 $000 Net profit after tax 15,571 10,664 Add/(deduct) non-cash/non-operating items: Depreciation and amortisation 34,791 31,066 Impairment and fair value losses/(gains) – – Net bad debts written off/(recovered) 146 716 Increase/(decrease) in provision for impaired trade receivables, GO-STOCK receivables and contract assets 4,622 (881) Loss/(gain) on sale of assets, and lease terminations (141) (1,219) Foreign exchange loss/(gain) (111) 237 Deferred tax expense/(benefit) (1,216) (886) Defined benefit expense/(gain) (103) (24) Pension contributions not expensed through profit or loss (459) (308) Equity accounted earnings (392) (990) Other non-cash/non-operating items (144) 21 Add/(deduct) movement in working capital items: Change in working capital due to purchase of business 2,382 – Change in inventories (5,243) (4,774) Change in accounts receivable and prepayments (34,283) (23,097) Change in GO-STOCK receivables (7,040) (29,139) Change in trade creditors, provisions and accruals 40,882 25,749 Change in other current assets/liabilities (1,600) 1,004 Add/(deduct) movement in taxation items: Change in income tax payable/receivable 4,931 4,258 Net cash flow from operating activities 52,593 12,397 Cash Flows Accounting Policies In the Consolidated Statement of Cash Flows, cash receipts and payments on behalf of customers, which reflect the activities of the customers rather than those of the Group, are reported on a net basis. The accompanying notes form an integral part of these consolidated financial statements.
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7 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Consolidated Statement of Financial Position As at 30 June 2026 2026 2025 NOTE $000 $000 ASSETS Current Cash and cash equivalents 9 3,995 2,613 Short-term derivative assets 10 784 227 Trade and other receivables 11 186,471 156,949 GO-STOCK receivables 12 89,556 81,962 Inventories 13 105,492 100,074 Other current assets 4,341 4,329 Total current assets 390,639 346,154 Non-current Deferred tax asset 7 6,167 7,115 Long-term derivative assets 10 1 13 Investments in equity accounted investees 1,507 1,256 GO-STOCK receivables 12 1,735 2,300 Other investments 242 242 Intangible assets and goodwill 14 53,340 38,706 Right-of-use assets 16 94,357 81,332 Property, plant and equipment 17 51,849 52,362 Defined benefit plan asset 19 501 200 Total non-current assets 209,699 183,526 Total assets 600,338 529,680 LIABILITIES Current Working capital debt 9 - - Short-term derivative liabilities 10 663 1,425 Accounts payable and accruals 18 215,989 175,205 Short-term lease liabilities 16 23,185 21,359 Income tax payable 5,960 1,029 Total current liabilities 245,797 199,018 Non-current Long-term debt 9 92,000 88,182 Long-term derivative liabilities 10 28 151 Long-term lease liabilities 16 77,291 65,789 Long-term provisions 18 2,655 2,730 Total non-current liabilities 171,974 156,852 Total liabilities 417,771 355,870 EQUITY Share capital 29 372,318 372,318 Reserves 29 16,577 16,785 Retained earnings/(deficit) 29 (206,328) (215,293) Total equity 182,567 173,810 Total liabilities and equity 600,338 529,680 The accompanying notes form an integral part of these consolidated financial statements.
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8 | KEY FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Consolidated Statement of Changes in Equity For the year ended 30 June 2026 REALISED CAPITAL AND DEFINED RETAINED SHARE REVALUATION BENEFIT PLAN EARNINGS/ TOTAL CAPITAL RESERVES RESERVE (DEFICIT) EQUITY $000 $000 $000 $000 $000 Balance as at 1 July 2024 372,318 24,662 (8,291) (223,956) 164,733 Total comprehensive income for the period Net profit after tax – – – 10,664 10,664 Other comprehensive income Defined benefit plan actuarial gain/(loss), net of tax – – 312 – 312 Total other comprehensive income – – 312 – 312 Total comprehensive income for the period – – 312 10,664 10,976 Transactions with shareholders recorded directly in equity Contributions by and distributions to shareholders Dividends to shareholders – – – (1,899) (1,899) Total contributions by and distributions to shareholders – – – (1,899) (1,899) Transfer to retained earnings – – 102 (102) – Balance as at 30 June 2025 372,318 24,662 (7,877) (215,293) 173,810 Balance as at 1 July 2025 372,318 24,662 (7,877) (215,293) 173,810 Total comprehensive income for the period Net profit after tax – – – 15,571 15,571 Other comprehensive income Defined benefit plan actuarial gain/(loss), net of tax – – (359) – (359) Total other comprehensive income – – (359) – (359) Total comprehensive income for the period – – (359) 15,571 15,212 Transactions with shareholders recorded directly in equity Contributions by and distributions to shareholders Dividends to shareholders – – – (6,455) (6,455) Total contributions by and distributions to shareholders – – – (6,455) (6,455) Transfer to retained earnings – – 151 (151) – Balance as at 30 June 2026 372,318 24,662 (8,085) (206,328) 182,567 The accompanying notes form an integral part of these consolidated financial statements.
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Lake Heron Station Winter Muster, photographed by Anna Munro for the 2025 PGW Landmarks Photo Collection. Ngā Whakapuakanga Pūtea Tāpiri Additional Financial Disclosures Including Notes to the Consolidated Financial Statements for the year ended 30 June 2026 Tae atu ki Ngā Pitopito Kōrero ki Ngā Tauākī Pūtea Tōpū mō te tau i mutu i te 30 Hune 2026
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PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements For the year ended 30 June 2026 10 | ADDITIONAL FINANCIAL DISCLOSURES 1 Operating Revenue 2026 2025 $000 $000 Revenue from contracts with customers Sales revenue 918,210 845,349 Commission revenue 126,307 108,056 Construction contract revenue 18,900 12,368 Other operating revenue Interest revenue on GO-STOCK receivables 8,011 7,181 Interest revenue on overdue debtor accounts 1,747 1,355 Sublease income 1,209 1,035 1,074,384 975,344 Income Recognition Accounting Policies Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised. Sales revenue Sales revenue comprises the sale value of transactions where the Group acts as a principal; for example, retail store sales, and sales of wool and velvet products. Revenue is measured at the transaction price when control is transferred to which an entity expects to be entitled in exchange for transferring goods or services to a customer. For the sale of goods, the transfer of control occurs when the risks and rewards, physical possession and the legal title of the goods have been transferred and accepted by the customer and the customer has a present obligation to make payment in respect of the goods. Customers may be entitled to discounts or rebates for certain items and/or volumes purchased, under varying categories. These discounts or rebates are defined as variable consideration and are included in the transaction price as a component of operating revenue upon the completion of the Group's performance obligations. These discounts or rebates are contractual in nature and known as at balance date, therefore, no assumptions or estimates are required. The Group offers a range of payment terms, and in some cases these can be up to 12 months. The Group does not recognise a financing element for sales with terms of 12 months or less. The Group offers warranties as required by New Zealand law and/or per the terms and conditions of the contracts with customers. The Group recognises the obligations under these warranties as a provision. Commission revenue Commission revenue comprises commission for transactions where the Group acts as an agent. For agency commissions, the Group does not take inventory risk or title for inventories, or for the Group's Livestock and Real Estate businesses, biological assets and properties respectively. The Group generates commissions from acting as an agent for organising the sale of livestock or real estate. Revenue is recognised at a point in time upon completion of the service. Construction contract revenue Construction services are provided to customers in the Water business to construct pivots and irrigation systems. Most contracts contain a single performance obligation. The size and duration of the contracts can vary significantly, and customers are invoiced as work progresses. Most contracts are completed within 12 months; therefore, the unearned revenue on these contracts is not disclosed. The Group accounts for revenue over time, which best depicts the pattern of transfer of the construction services to the customer. The Group uses an input method to recognise revenue based on a percentage of cost completed. This method involves judgements relating to a contract's expected margin and its stage of completion. Interest and similar income and expense The Group recognises the fixed fees charged to customers under its GO-STOCK programme as interest revenue. Refer to Note 12 GO-STOCK Receivables for further explanation regarding this programme. This interest revenue is recognised over the term of the GO-STOCK contracts which can be for a term of up to 540 days. The Group also recognises interest revenue on overdue receivables using the effective interest method. Refer to the accounting policies under Note 6 Net Interest Expense and Foreign Exchange Items for further explanation on the effective interest method. Sublease income The Group recognises lease payments received under subleases as income on a straight-line basis over the lease term. Refer to Note 16 Right-of-Use Assets and Lease Liabilities for further explanation.
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11 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 2 Cost of Sales 2026 2025 NOTE $000 $000 Depreciation and amortisation 52 75 Employee benefits (including commissions) 31,832 29,315 Inventories and consumables 13 736,080 670,417 Freight 12,091 13,331 Other 7,462 7,209 787,517 720,347 3 Other Operating Expenses 2026 2025 NOTE $000 $000 Audit of financial statements of the Company by Ernst & Young 450 430 Other assurance services provided by Ernst & Young: Limited assurance on emissions reporting – 15 Other services provided by Ernst & Young: Research and development tax incentive advisory 20 16 Directors' fees 612 660 Donations 72 10 Increase/(decrease) in provision for impaired trade receivables, GO-STOCK receivables and contract assets 11, 12 4,622 (881) Net bad debts written off/(recovered) 146 716 IT and telecommunication costs 16,154 16,443 Marketing costs 4,846 4,515 Motor vehicle costs 8,122 7,397 Travel costs 3,864 3,461 Rental and operating lease costs 604 384 Occupancy costs (excluding rental and operating lease) 7,126 6,240 Other staff costs 7,015 6,198 Other expenses 8,013 7,577 61,666 53,181
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12 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 4 Non-Operating Gains/(Losses) 2026 2025 $000 $000 Gain/(loss) on sale of property, plant and equipment 152 1,217 Other non-operating gains/(losses) 69 (98) 221 1,119 5 Impairment and Fair Value Gains/(Losses) 2026 2025 $000 $000 Net impairment reversal/(impairment) – property, plant and equipment – – Fair value gains/(losses) – – – – Impairment Accounting Policies The carrying value of the Group's assets are reviewed at each reporting date to determine whether there is any objective evidence of impairment. An impairment loss is recognised whenever the carrying amount exceeds its recoverable amount. Impairment losses directly reduce the carrying value of assets and are recognised in profit or loss unless the asset is carried at a revalued amount in accordance with another standard. Non-financial assets The carrying amounts of the Group's non-financial assets (other than inventories and deferred tax assets) are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount of the asset or the cash-generating unit (CGU) to which the asset relates is estimated. A CGU is the smallest identifiable asset group that generates cash flows that are largely independent from other assets and groups. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. An assessment is made at each reporting date to determine whether there is any indication that a previously recognised impairment loss no longer exists or has reduced. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
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13 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 6 Net Interest Expense and Foreign Exchange Items 2026 2025 $000 $000 Interest income 501 385 Interest funding expense: Bank interest on loans and overdrafts (5,229) (5,379) Bank facility fees (1,528) (1,782) (6,757) (7,161) Net interest income/(expense) excluding interest on lease liabilities (6,256) (6,776) Interest on lease liabilities (4,524) (4,410) Net interest expense (10,780) (11,186) Foreign exchange gain/(loss) Net gain/(loss) on foreign denominated items 641 821 641 821 Fair value gain/(loss) on foreign exchange derivatives Fair value gain/(loss) on foreign exchange derivatives 1,430 (1,827) 1,430 (1,827) Net Interest Expense and Foreign Exchange Items Accounting Policies Interest and similar income and expense For all financial instruments measured at amortised cost, interest income or expense is recorded at the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or financial liability. The calculation takes into account all contractual terms of the financial instrument (for example, prepayment options) and includes any fees or incremental costs that are directly attributable to the instrument and are an integral part of the effective interest rate, but not future credit losses. Once the recorded value of a financial asset or a group of similar financial assets has been reduced due to an impairment loss, interest income continues to be recognised using the original effective interest rate applied to the new carrying amount. Fair value change on foreign exchange derivatives The Group undertakes transactions denominated in foreign currencies and exposure to movements in foreign currency arises from these activities. The Group uses forward foreign exchange contracts to manage these exposures. These derivatives are recorded at their fair value with mark-to-market fair value movements flowing through fair value gain/(loss) on foreign exchange derivatives in the consolidated statement of profit or loss. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.
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Refer to Accounting Policies – page 16. 14 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 7 Income Taxes A. Income tax recognised in profit or loss 2026 2025 $000 $000 Current tax benefit/(expense) Current year (6,697) (4,333) Adjustments for prior years 21 119 (6,676) (4,214) Deferred tax benefit/(expense) Origination and reversal of temporary differences 1,262 1,022 Adjustments for prior years (46) (136) 1,216 886 Income tax benefit/(expense) (5,460) (3,328) Reconciliation Profit before income tax 21,031 13,992 Income tax using the Company's tax rate (28%) (5,889) (3,917) Non-deductible expenditure (250) (397) Non-assessable income 286 779 Tax credits 181 213 Over/(under) provided in prior years (25) (17) Other 237 11 Income tax benefit/(expense) (5,460) (3,328) B. Income tax recognised directly in equity 2026 2025 $000 $000 Deferred tax on movement of actuarial gains/losses on employee benefit plans (98) (273) Income tax benefit/(expense) recognised directly in equity (98) (273)
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Refer to Accounting Policies – page 16. 15 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 7 Income Taxes (continued) C. Recognised deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: ASSETS ASSETS LIABILITIES LIABILITIES NET NET 2026 2025 2026 2025 2026 2025 $000 $000 $000 $000 $000 $000 Property, plant and equipment – – (1,034) (604) (1,034) (604) Intangible assets – – (6,458) (2,033) (6,458) (2,033) Right-of-use assets – – (26,426) (22,773) (26,426) (22,773) Lease liabilities 28,201 24,493 – – 28,201 24,493 Employee benefits 7,714 5,446 – – 7,714 5,446 Provisions 4,170 2,586 – – 4,170 2,586 Deferred tax asset/(liability) 40,085 32,525 (33,918) (25,410) 6,167 7,115 RECOGNISED IN RECOGNISED IN RECOGNISED RECOGNISED OTHER RECOGNISED OTHER AS PART OF BALANCE IN PROFIT COMPREHENSIVE BALANCE IN PROFIT COMPREHENSIVE A BUSINESS BALANCE 1 JUL 2024 OR LOSS INCOME 30 JUN 2025 OR LOSS INCOME COMBINATION 30 JUN 2026 $000 $000 $000 $000 $000 $000 $000 $000 Property, plant and equipment (404) (200) – (604) (430) – – (1,034) Intangible assets (1,439) (594) – (2,033) (2,353) – (2,072) (6,458) Right-of-use assets (25,354) 2,581 – (22,773) (3,653) – – (26,426) Lease liabilities 26,775 (2,282) – 24,493 3,708 – – 28,201 Employee benefits 3,885 1,834 (273) 5,446 2,360 (98) 6 7,714 Provisions 3,038 (453) – 2,586 1,584 – – 4,170 6,501 886 (273) 7,115 1,216 (98) (2,066) 6,167 D. Unrecognised tax losses and temporary differences At 30 June 2026, the Group has no unrecognised deferred tax assets relating to tax losses and temporary differences (2025: Nil). E. Imputation credits The Group has $5.95 million imputation credits as at 30 June 2026 (2025: $6.47 million).
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16 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 7 Income Taxes (continued) Income Tax Accounting Policies Income tax expense comprises current and deferred taxation and is recognised in profit or loss except to the extent that it relates to items recognised directly in other comprehensive income or equity, in which case it is recognised directly in other comprehensive income or equity. Current tax Current tax is the expected tax payable on the taxable income for the year, calculated using tax rates enacted or substantively enacted at the reporting date. Current tax includes any adjustment to tax payable with respect to previous periods. Current tax assets and liabilities are offset only if certain criteria are met. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantially enacted at the reporting date. Deferred tax is not recognised for: – taxable temporary differences arising on the initial recognition of goodwill; – temporary differences relating to subsidiaries, associates and jointly controlled entities to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable they will not reverse in the foreseeable future; – temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be recognised. Deferred tax assets and liabilities are offset only if certain criteria are met.
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17 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 8 Earnings Per Share and Net Tangible Assets A. Earnings per share (EPS) The calculation of EPS is based on the following profit figures and number of authorised shares. WEIGHTED AVERAGE ISSUED ORDINARY SHARES NUMBER OF ORDINARY SHARES 2026 2025 2026 2025 000 000 000 000 Issued ordinary shares at 1 July 75,484 75,484 75,484 75,484 Balance at 30 June 75,484 75,484 75,484 75,484 There are no dilutive shares or options (2025: Nil). 2026 2025 $000 $000 Net profit after tax 15,571 10,664 2026 2025 $ $ Basic and diluted EPS 0.206 0.141 B. Net tangible assets (NTA) The calculation of NTA per share, which is a required NZX disclosure, is based on the following NTA figure and the Company's issued ordinary shares at the end of the period. 2026 2025 $000 $000 Total assets 600,338 529,680 Total liabilities (417,771) (355,870) less Intangible assets and goodwill (53,340) (38,706) less Deferred tax asset (6,167) (7,115) Net tangible assets 123,060 127,989 2026 2025 $ $ NTA per issued ordinary shares at the end of period 1.630 1.696 Earnings Per Share Accounting Policies The Group presents basic and diluted EPS data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to shareholders by the weighted average number of shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss and the number of shares outstanding to include the effects of all potential dilutive shares.
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18 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 9 Cash and Financing Facilities 2026 2025 NOTE $000 $000 Cash and cash equivalents 3,995 2,613 Current financing facilities 9A – – Term financing facilities 9A (92,000) (88,182) Net interest-bearing (debt)/cash and cash equivalents (88,005) (85,569) GO-STOCK receivables (including accrued interest) 12 91,291 84,262 GO-STOCK receivables (accrued interest portion) 12 (2,951) (2,820) Net interest-bearing (debt)/cash and cash equivalents after adjusting for GO-STOCK receivables 335 (4,127) A. Financing facilities The Company entered into a new syndicated facility agreement on 26 June 2026. The new agreement reorganises the Group's funding into three distinct facilities more aligned with the Group's operations with increased total limits to provide a platform for future strategic growth, in particular for GO-STOCK receivables which now operates under its own facility. The new facilities provide the following: – GO-STOCK facilities of up to $115.00 million maturing on 30 September 2029. This facility had $75.00 million drawn at 30 June 2026. This new facility is available to fund up to 90% of the GO-STOCK receivables balance. – Core debt facilities of up to $50.00 million maturing on 30 September 2029 (2025: $100.00 million maturing on 30 June 2027). This facility had $17.00 million drawn at 30 June 2026 (2025: $75.00 million drawn). This facility is to fund the core and general commercial activities of the group along with the GO-STOCK receivables balance not specifically funded from the GO-STOCK facility. – Working Capital facilities of up to $100.00 million maturing on 30 September 2029 (2025: $85.00 million maturing on 30 June 2027). This facility was undrawn at 30 June 2026 (2025: $13.00 million drawn). This facility funds the Group's seasonal working capital requirements across the financial year. The limits for this facility are sculpted throughout the year to align with the Group's seasonal working capital needs with minimum and maximum limits of $35.00 million and $100.00 million respectively across the financial year. This facility is subject to an annual clean down requirement. Interest on these syndicated facilities is determined based on floating interest rates. The Company has granted a general security deed and mortgage over all its wholly-owned New Zealand assets to a security trust. Bank of New Zealand acts as facility agent and security trustee for the banking syndicate, which comprises Bank of New Zealand, Coöperatieve Rabobank U.A. (New Zealand branch) and Westpac New Zealand Limited. The agreement contains various financial covenants and restrictions relevant to each separate facility, including maximum permissible ratios for debt leverage and operating leverage, together with a Loan to Value Ratio (LVR) limit of 90% for drawings from the GO-STOCK facility. The agreement also contains annual limits on capital expenditure and asset disposals. Key operating leverage and debt leverage covenants are reported to the facility agent on a quarterly basis with debt leverage for the Working Capital facilities and the GO-STOCK LVR reported on a monthly basis. The syndicated facility agreement allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company's syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $4.77 million as at 30 June 2026 (2025: $4.77 million) and included the following: – Overdraft facilities of $3.00 million. This facility was undrawn at 30 June 2026 (2025: undrawn). – Guarantees and letters of credit of $1.77 million.
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19 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 10 Derivative Financial Instruments The Group uses forward foreign exchange contracts to manage its exposure to foreign currency fluctuations. In accordance with the Group's treasury policy, the Group does not hold any of these derivative instruments for trading purposes. 2026 2025 $000 $000 Derivative assets held for risk management Current 784 227 Non-current 1 13 785 240 Derivative liabilities held for risk management Current (663) (1,425) Non-current (28) (151) (691) (1,576) Net derivative asset/(liability) held for risk management 94 (1,336) Derivative Financial Instruments Accounting Policies Derivative financial instruments are recognised initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value, and changes therein are generally recognised in profit or loss. The fair value of forward exchange contracts is based on broker quotes. Where the Group enters into derivative transactions, these agreements do not meet the criteria for offsetting in the consolidated statement of financial position. The fair value amounts recognised in the consolidated statement of financial position are recorded on a gross basis. The Group does not currently apply hedge accounting.
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20 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 11 Trade and Other Receivables 2026 2025 NOTE $000 $000 Accounts receivable due from unrelated parties 163,649 130,454 Accounts receivable due from related parties 25 2 – Gross accounts receivable 163,651 130,454 less Provision for impaired debtors (6,027) (1,496) Net accounts receivable 157,624 128,958 Contract assets 1,981 2,650 less Provision for impaired contract assets – – Other receivables 23,141 20,882 Prepayments 3,725 4,459 Trade and other receivables 186,471 156,949 Analysis of movements in provisions for impaired debtors and contract assets Balance at the beginning of year (1,496) (2,308) Movement in provision (4,531) 812 Balance at the end of the year (6,027) (1,496) The ageing status of the accounts receivable at the reporting date is as follows: TOTAL TOTAL ACCOUNTS ACCOUNTS RECEIVABLE PROVISION RECEIVABLE PROVISION 2026 2026 2025 2025 $000 $000 $000 $000 Not past due 153,134 (613) 121,689 (505) Past due 1 – 30 days 3,760 (13) 3,710 (71) Past due 31 – 60 days 403 (382) 3,966 (424) Past due 61 – 90 days 232 (20) 491 (33) Past due 90 plus days 6,122 (4,999) 598 (463) 163,651 (6,027) 130,454 (1,496) During the period the Group recognised a significant provision in respect of one customer which has entered liquidation / administration and this reflects the increase in the provision held versus the comparative year.
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Refer to Accounting Policies – page 22. 21 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 12 GO-STOCK Receivables The Group holds receivables in respect of its GO-STOCK range of livestock products. The GO-STOCK range allows farmers to defer payment for the purchase of livestock. The counterparty farmer to the GO-STOCK product is fully exposed to the risks and rewards of ownership of the livestock. To mitigate credit risk, the Group retains legal title to the livestock until its sale. Fee income received in respect of the GO-STOCK receivables is recognised by the Group as interest income over the respective contract period and is included within operating revenue (refer to Note 1 Operating Revenue). Accrued interest income in respect of the GO-STOCK receivables is included within the GO-STOCK receivables balance and amounts to $2.95 million as at 30 June 2026 (2025: $2.82 million). 2026 2025 $000 $000 GO-STOCK receivables – current 89,894 82,209 GO-STOCK receivables – non-current 1,735 2,300 91,629 84,509 less Provision for impairment – GO-STOCK receivables (338) (247) 91,291 84,262 GO-STOCK receivables – accrued interest portion 2,951 2,820 Analysis of movements in provisions for impaired GO-STOCK receivables Balance at the beginning of the year (247) (316) Movement in provision (91) 69 Balance at the end of the year (338) (247) The ageing status of the GO-STOCK receivables at the reporting date is as follows: GO-STOCK GO-STOCK RECEIVABLES PROVISION RECEIVABLES PROVISION 2026 2026 2025 2025 $000 $000 $000 $000 Not past due 91,208 (200) 84,509 (247) Past due 1 – 30 days – – – – Past due 31 – 60 days – – – – Past due 61 – 90 days 299 (16) – – Past due 90 plus days 122 (122) – – 91,629 (338) 84,509 (247)
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22 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 12 GO-STOCK Receivables (continued) Trade and Other Receivables and GO-STOCK Receivables Accounting Policies Recognition and measurement A receivable without a significant financing component is initially measured at the transaction price and classified as financial assets measured at amortised cost. Accounts receivable includes accrued interest. Impairment Specific provisions are maintained to cover identified impaired receivables. Judgement is required in determining the impairment provision. The Group recognises loss allowances for the expected credit loss (ECL) on Trade and GO-STOCK receivables. The Group measures loss allowances for Trade and GO-STOCK receivables at an amount equal to lifetime ECL. When estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost and effort. This includes both qualitative and quantitative information and analysis, based on the Group's historical experience and informed credit assessment, that includes forward-looking information. The Group assumes that the credit risk has increased significantly if the receivable is more than 60 days past due. The Group considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held). On a monthly basis, the Group via its Credit Committee, assesses whether Trade and GO-STOCK receivables are credit-impaired. All individual instruments that are considered significant are subject to this approach. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data such as significant financial difficulty of the debtor. Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. 13 Inventory 2026 2025 $000 $000 Merchandise 89,125 87,167 Wool and velvet inventory 19,039 14,577 less Provision for inventory write-down (2,672) (1,670) 105,492 100,074 During the year, inventories of $736.08 million (2025: $670.42 million) are included in cost of sales in the profit or loss (refer to Note 2 Cost of Sales). Included within this amount is a write-down of inventories of $1.89 million (2025: $1.30 million) to net realisable value and reversals of previously recognised write-downs of $0.17 million (2025: $0.49 million). Inventories Accounting Policies Raw materials and finished goods are stated at the lower of cost or net realisable value. Cost is determined on a weighted average cost basis. In the case of manufactured goods, cost includes direct materials, labour and production overheads. Judgement is required in determining the net realisable value for inventories.
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Refer to Accounting Policies – page 24. 23 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 14 Intangible Assets and Goodwill CAPITAL WORK SOFTWARE RIGHTS GOODWILL IN PROGRESS TOTAL NOTE $000 $000 $000 $000 Cost Balance as at 1 July 2024 30,794 2,497 – 23,128 56,419 Additions 15 15 – 10,550 10,580 Transfers 32,578 – – (32,578) – Disposals (107) – – (82) (189) Balance as at 30 June 2025 63,280 2,512 – 1,018 66,810 Balance as at 1 July 2025 63,280 2,512 – 1,018 66,810 Additions 179 34 – 718 931 Added as part of a business combination 15 – 7,443 11,487 – 18,930 Transfers 222 75 – (297) – Disposals – – – – – Balance as at 30 June 2026 63,681 10,064 11,487 1,439 86,671 Amortisation Balance as at 1 July 2024 24,331 2,065 – – 26,396 Amortisation 1,804 11 – – 1,815 Transfers (107) – – – (107) Balance as at 30 June 2025 26,028 2,076 – – 28,104 Balance as at 1 July 2025 26,028 2,076 – – 28,104 Amortisation 4,224 1,003 – – 5,227 Disposals – – – – – Balance as at 30 June 2026 30,252 3,079 – – 33,331 Carrying amounts 30 June 2025 37,252 436 – 1,018 38,706 30 June 2026 33,429 6,985 11,487 1,439 53,340
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24 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 14 Intangible Assets and Goodwill (continued) Intangible Assets and Goodwill Accounting Policies Software Software is a finite life intangible and is recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over an estimated useful life between 1 and 15 years. The estimated useful life and amortisation method is reviewed at the end of each annual reporting period and adjusted if appropriate. Rights Manufacturing and production rights are finite life intangibles and are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over an estimated useful life between 2 and 10 years. The estimated useful life and amortisation method is reviewed at the end of each annual reporting period and adjusted if appropriate. Capital Work in Progress Capital work in progress includes the cost of materials, services, labour and direct production overheads and is stated net of impairments. Goodwill Goodwill arises on the acquisition of subsidiaries. Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognised goodwill is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired. It is carried at cost less accumulated impairment losses (if any). Impairment losses on goodwill are not reversed. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash generating units 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. Impairment The carrying amounts of the Group's intangible assets are reviewed at each reporting date to determine whether there is any indication of impairment. Impairment testing uses the higher of value-in-use or fair value less cost of disposal calculations for operational cash generating units. If any such indication exists, then the recoverable amount of the asset is estimated. For intangible assets that have indefinite lives, the recoverable amount is estimated at each reporting date. An impairment loss is recognised in the profit or loss if the carrying amount of the asset exceeds the recoverable amount. Refer to the accounting policy under Note 5 Impairment and Fair Value Gains/(Losses) for further explanation.
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25 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 15 Acquisition of Subsidiary Background of acquisition On 7 July 2025 the Group announced the acquisition of Nexan Corporation Limited and its subsidiaries (Nexan), a leading New Zealand animal health manufacturer that develops and markets a range of products for livestock. Nexan’s offering as an innovator aligns well with PGW’s strategic objective of being the leader in bringing technical knowhow and expertise to the market to benefit New Zealand farmers and growers. The transaction completed on 31 July 2025. The transaction resulted in the Group acquiring all of the shares and voting interests in Nexan for a purchase price of $19.91 million. A provisional value of identifiable assets and liabilities acquired was reported as a subsequent event in the consolidated financial statements for the year ended 30 June 2025. At that time the Group had yet to perform a review of the fair value of assets and liabilities acquired. In accordance with NZ IFRS 3 Business Combinations these amounts are able to be retrospectively updated for a period of up to 12 months from the date of acquisition, to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The Group has now finalised its review of the fair value of the net assets and liabilities acquired. Subsequent to the Group's interim financial statement disclosure Goodwill has increased by $0.12 million to $11.49 million. This is the result of confirmation of values attributed to intangibles acquired. Revenue and earnings information 11 MONTHS TO JUNE 2026 $000 Revenue 8,095 Net profit after tax 1,039 Revenue recorded by the acquiree following acquisition relates to sales made to PGW Group entities which are eliminated for Group reporting purposes. Acquisition costs Acquisition costs of $0.02 million were incurred in the period to 30 June 2026 (30 June 2025: $0.12 million). These costs have been included within Non-operating gains/losses in the Consolidated Statement of Profit or Loss. Consideration transferred $000 Purchase price 19,914 Settlement of pre – existing relationships (1,963) Total consideration paid to vendor 17,951
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26 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 15 Acquisition of subsidiary (continued) PROVISIONAL ADJUSTMENTS TO FAIR VALUE 31 JULY 2025 FAIR VALUE 31 JULY 2025 $000 $000 $000 Value of identifiable assets and liabilities acquired Current assets Cash and cash equivalents 254 – 254 Prepayments 13 2 15 Inventories 2,184 – 2,184 Non-current assets Property, plant and equipment 540 (125) 415 Intangibles 165 7,278 7,443 Current liabilities Trade and other payables (1,245) – (1,245) Income tax payable (411) – (411) GST payable (125) – (125) Non-current liabilities Deferred tax liability – (2,066) (2,066) Net Assets Acquired 1,375 5,089 6,464 Goodwill acquired upon acquisition 16,576 (5,089) 11,487 Total net consideration 17,951 – 17,951 Plus Settlement of pre-existing relationships 1,963 – 1,963 Less cash and cash equivalents acquired (254) – (254) Net cash outflow on acquisition 19,660 – 19,660 Intangibles Intangibles relate to the fair value attributed to rights acquired for products that are produced by Nexan. Fair value has been determined using a discounted cashflow approach. Rights are finite life intangible assets with an estimated useful life of 7 years. The Group reviews estimated useful lives at the end of each annual reporting period and adjusts where appropriate. Goodwill Goodwill arises on the acquisition of subsidiaries. Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the assets and liabilities of the acquiree. The Group sees synergies with the acquired company and the Group's existing operations, including revenue growth opportunities and operational efficiencies. These synergies do not meet the criteria for separate recognition as identifiable intangible assets. Goodwill has been attributed to the Nexan business CGU which is included within the Retail & Water Operating Segment. Following the Nexan acquisition, the Group has tested the carrying value of Goodwill at the reporting date. This was based on a value-in-use calculation for the Nexan CGU using discounted future cash flow projections including the board approved 2027 budget. The calculations use past experience and expectations for the future, and the recoverable amount of the cash generating units exceeds carrying value.
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Refer to Accounting Policies – page 29. 27 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 16 Right-of-Use Assets and Lease Liabilities Group as a lessee The Group leases many assets, including: – leases of land and buildings from which it conducts operations. These leases range in length from one to twenty-one years with various rights of renewal. Where surplus properties are unable to be exited, the Group subleases these properties where possible and derives sublease revenue on a short-term temporary basis. – leases of motor vehicles and forklifts for use by employees, agents and representatives. These leases range for a period of between three and seven years. The Group elects not to recognise right-of-use assets and lease liabilities for short-term or low-value property leases. The Group continues to expense lease payments associated with these leases on a straight-line basis. A. Right-of-use assets PROPERTY VEHICLES TOTAL $000 $000 $000 Balance as at 1 July 2024 75,693 15,877 91,570 Additions 160 5,307 5,467 Depreciation charge (15,951) (7,398) (23,349) Reassessments, modifications and terminations 6,003 1,641 7,644 Balance as at 30 June 2025 65,905 15,427 81,332 Balance as at 1 July 2025 65,905 15,427 81,332 Additions 7,151 7,775 14,926 Depreciation charge (16,620) (7,839) (24,459) Reassessments, modifications and terminations 21,728 830 22,558 Balance as at 30 June 2026 78,164 16,193 94,357 B. Lease liabilities PROPERTY VEHICLES TOTAL $000 $000 $000 Balance as at 1 July 2024 80,197 16,469 96,666 Additions 140 5,307 5,447 Reassessments, modifications and terminations 6,007 1,636 7,643 Interest on lease liabilities 3,294 1,116 4,410 Lease payments (18,668) (8,350) (27,018) Balance as at 30 June 2025 70,970 16,178 87,148 Balance as at 1 July 2025 70,970 16,178 87,148 Additions 7,031 7,775 14,806 Reassessments, modifications and terminations 21,732 821 22,553 Interest on lease liabilities 3,508 1,016 4,524 Lease payments (19,731) (8,824) (28,555) Balance as at 30 June 2026 83,510 16,966 100,476
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Refer to Accounting Policies – page 29. 28 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 16 Right-of-Use Assets and Lease Liabilities (continued) B. Lease liabilities (continued) A maturity analysis of lease liabilities is included in Note 20 Financial Instruments – Fair Values and Risk Management. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. Some of the Group's property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. The extension options are exercisable only by the Group and not by the lessors. The Group assesses at the lease commencement date whether it is reasonably certain to exercise the extension options. A reassessment is made subsequently if there is any significant event or significant changes in circumstances within the Group's control. The Group estimates that the potential future lease payments, should it exercise all the extension options, would result in an increase in lease liabilities of $94.47 million (2025: $109.47 million). C. Other disclosures 2026 2025 NOTE $000 $000 Amounts in the consolidated statement of profit or loss Depreciation on right-of-use assets (24,459) (23,349) Interest on lease liabilities 6 (4,524) (4,410) Short-term or low-value lease expenses (678) (605) Variable lease payments not included in the measurement of lease liabilities (122) (97) Income from subleasing right-of-use assets 1,209 1,035 Amounts in the consolidated statement of cash flows Total cash outflow for leases (28,554) (27,018)
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29 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 16 Right-of-Use Assets and Lease Liabilities (continued) Lease Accounting Policies The Group assesses at the inception of a contract as to whether the contract is, or contains, a lease as defined in NZ IFRS 16 Leases. (i) As a lessee The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The Group elects not to recognise right- of-use assets and lease liabilities for short-term or low-value leases. The Group continues to expense lease payments associated with these leases on a straight-line basis. A number of judgements and estimates are made in calculating the right-of-use asset and lease liability amounts. The judgements and estimates include the applicable lease terms (including any rights of renewal expected to be exercised) and the Group's incremental borrowing rate. Right-of-use assets Right-of-use assets are initially measured at cost, which comprises the initial amount of lease liability adjusted for any prepaid lease payments, plus any initial direct costs incurred and any estimated restoration costs, and less any lease incentives received. These assets are depreciated using the straight-line method from the commencement date to the earlier of the end of the lease term or the asset's useful life. Right-of-use assets are periodically reduced by impairment losses (if any) and adjusted for certain remeasurements of the lease liabilities. Lease liabilities Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that are based on an index or a rate, amounts expected to be payable under a residual value guarantee, and any exercise price the Group is reasonably certain to exercise. The lease payments are discounted using the Group's incremental borrowing rate, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar environment under similar terms and conditions. After the commencement date, lease liabilities are increased to reflect interest on the lease liabilities and reduced to reflect the lease payments made. Interest on lease liabilities is charged to the profit or loss and is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liabilities. Lease liabilities are remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the Group's estimate of any amount payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liabilities are remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use assets, or recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. (ii) As a lessor When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease. The Group recognises lease payments received under operating leases as income within the profit or loss on a straight-line basis over the lease term.
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Refer to Accounting Policies – page 31. 30 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 17 Property, Plant and Equipment PLANT AND CAPITAL WORK LAND BUILDINGS EQUIPMENT IN PROGRESS TOTAL NOTE $000 $000 $000 $000 $000 Cost Balance as at 1 July 2024 17,715 15,121 68,186 3,514 104,536 Additions – 759 1,626 4,555 6,940 Transfers – 782 3,345 (4,127) – Disposals – – (1,086) (3) (1,089) Balance as at 30 June 2025 17,715 16,662 72,071 3,939 110,387 Balance as at 1 July 2025 17,715 16,662 72,071 3,939 110,387 Additions – 1,657 3,239 1,152 6,048 Added as part of a business combination 15 – – 415 – 415 Transfers – 350 2,624 (2,974) – Disposals (104) (1,405) (1,171) (196) (2,876) Balance as at 30 June 2026 17,611 17,264 77,178 1,921 113,974 Depreciation Balance as at 1 July 2024 – 5,269 47,669 – 52,938 Depreciation for the year – 851 5,050 – 5,901 Depreciation recovered to cost of goods sold – – 75 – 75 Transfers – 245 (245) – – Disposals – – (889) – (889) Balance as at 30 June 2025 – 6,365 51,660 – 58,025 Balance as at 1 July 2025 – 6,365 51,660 – 58,025 Depreciation for the year – 617 4,487 – 5,104 Depreciation recovered to cost of goods sold – – 52 – 52 Transfers – – – – – Disposals – (150) (906) – (1,056) Balance as at 30 June 2026 – 6,832 55,293 – 62,125 Carrying amounts 30 June 2025 17,715 10,297 20,411 3,939 52,362 30 June 2026 17,611 10,432 21,885 1,921 51,849
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31 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 17 Property, Plant and Equipment (continued) Property, Plant and Equipment Accounting Policies Recognition and measurement Capital work in progress is stated at cost, net of accumulated impairment losses. Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the cost of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in the profit or loss during the reporting period that the item is disposed. Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group and the cost can be measured reliably. The costs of day-to-day servicing of property, plant and equipment is recognised in profit or loss as incurred. Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each item of property, buildings, plant and equipment. Leasehold assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives for the current and comparative periods are between 2 and 40 years for plant and equipment and between 5 and 50 years for buildings. Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted if appropriate. Assets held for sale Non-current assets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. The sale must be highly probable and the asset available for immediate sale in its present condition. Non-current assets held for sale are measured at the lower of the asset’s carrying amount and its fair value less costs to sell. Impairment The carrying amounts of the Group's property, plant and equipment assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount of the asset is estimated. An impairment loss is recognised in the profit or loss if the carrying amount of an asset exceeds the recoverable amount. Refer to the accounting policy under Note 5 Impairment and Fair Value Gains/(Losses) for further explanation.
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32 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 18 Trade and Other Payables 2026 2025 NOTE $000 $000 Trade creditors 160,899 125,549 Goods received but not invoiced 10,177 6,898 Contract liabilities 1,814 1,662 Employee entitlements 29,343 24,723 Accruals and other liabilities 11,675 14,860 Other provisions (including product warranty, client claim and make good provisions) 18A, 18B 2,888 2,618 Loyalty reward programme 22A 1,848 1,625 218,644 177,935 Payable within 12 months 215,989 175,205 Payable beyond 12 months 2,655 2,730 218,644 177,935 A. Make good provision on leased properties During the year ended 30 June 2026, the Group recognised additional provisions of $0.12 million (2025: $0.02 million) in respect of new property leases entered into during the year. These additional provisions have been capitalised to the right-of-use assets and are amortised over the life of the right-of-use assets. The Group also released $0.18 million (2025: $0.08 million) of provision in respect to leased properties which it exited. At the reporting date, the balance of the make good provision is $2.56 million (2025: $2.62 million). The Group expects to settle this liability over the next 10-21 years as the leases expire. B. Client claims provision The Group receives client claims from time to time as part of the ordinary course of business and these claims are reviewed on a case by case basis to determine validity. As at balance date, the Group was in the process of reviewing certain claims for the supply of goods which are typically the responsibility of suppliers under terms of trade. The Group recognises a provision for its best estimate of any obligation.
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Refer to Accounting Policies – page 35. 33 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 19 Defined Benefit Asset/(Liability) The Group makes contributions to the PGG Wrightson Employee Benefits Plan (the "Plan"). The Plan is governed under one trust deed and the assets of the Plan are unallocated to any of the Plan members. The Plan provides a range of superannuation and insurance benefits for employees and former employees. The Plan is registered under the Financial Markets Conduct Act 2013. The Plan is not open to new members. Certain retired employees of the Plan are entitled to receive an annual pension payment payable for their remaining life, and in some cases, for the remaining life of a surviving partner. The Group accounts for its interest in the Plan as a defined benefit plan with defined benefit obligations in accordance with NZ IAS 19 Employee Benefits because the Group has a legal obligation to pay further contributions, if the Plan does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. The Group has an obligation to ensure the Plan has sufficient assets to pay the benefits of all members of the Plan. The actuarial calculations for the Plan are undertaken by Michael Chamberlain, a fellow of the New Zealand Society of Actuaries, for MCA NZ Limited. 2026 2025 2024 2023 2022 $000 $000 $000 $000 $000 Present value of funded obligations – Defined Benefit component (18,344) (20,147) (21,648) (22,723) (26,272) – Other Contribution component (24,462) (24,904) (24,995) (23,886) (22,893) Total Present value of funded obligations (42,806) (45,051) (46,643) (46,609) (49,165) Fair value of plan assets – Defined Benefit component 18,845 20,347 20,931 21,647 24,146 – Other Contribution component 24,462 24,904 24,995 23,886 22,893 Total Fair value of plan assets 43,307 45,251 45,926 45,533 47,039 Total defined benefit asset/(liability) 501 200 (717) (1,076) (2,126)
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Refer to Accounting Policies – page 35. 34 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 19 Defined Benefit Asset/(Liability) (continued) A. Movement in net defined benefit asset/(liability) NET DEFINED BENEFIT DEFINED BENEFIT OBLIGATION FAIR VALUE OF PLAN ASSETS ASSET/ (LIABILITY) 2026 2025 2026 2025 2026 2025 $000 $000 $000 $000 $000 $000 Balance as at 1 July (45,051) (46,643) 45,251 45,926 200 (717) Included in profit or loss: Current service costs (364) (411) – – (364) (411) Interest costs (1,982) (2,079) 2,001 2,052 19 (27) Included in other comprehensive income: Gains/(losses) from change in demographic assumptions – – – – – – Gains/(losses) from change in financial assumptions (208) (168) – – (208) (168) Experience gains/(losses) 712 (963) – – 712 (963) Expected return on plan assets – – (614) 1,818 (614) 1,818 Other: Employer contributions – – 756 668 756 668 Member contributions (665) (470) 665 470 – – Benefits paid by the Plan 4,752 5,683 (4,752) (5,683) – – Balance as at 30 June (42,806) (45,051) 43,307 45,251 501 200 The Group expects to pay $0.34 million in contributions to the Plan during the 2027 reporting period (2026: expected $0.36 million and paid $0.76 million). Member contributions are expected to be $0.48 million in 2027 (2026: expected $0.51 million and paid $0.67 million). As at 30 June 2026, the weighted average duration of the defined benefit obligation (DBO) is 10.58 years for the Plan (2025: 10.49 years). B. Plan assets 2026 2025 % % Consist of: Equities 50 51 Fixed interest 34 24 Cash 16 25 100 100 Plan assets do not include any exposure to the Company's ordinary shares (2025: Nil). C. Actuarial assumptions at the reporting date 2026 2025 % % Discount rate used – Implied 10.58 year New Zealand Government Bond rate (2025: Implied 10.49 year New Zealand Government Bond rate) 4.44 4.59 Inflation 2.00 2.00 Future salary increases 2.50 2.50 Future pension increases 1.65 1.65
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35 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 19 Defined Benefit Asset/(Liability) (continued) C. Actuarial assumptions at the reporting date (continued) Assumptions regarding future mortality rates based on published statistics and experience: 2026 2026 2025 2025 MALE FEMALE MALE FEMALE YEARS YEARS YEARS YEARS Longevity at age 65 for current pensioners 21 24 21 24 Longevity at age 65 for current members aged 45 23 25 23 25 D. Sensitivity analysis The sensitivity of the DBO to changes in the weighted principal assumptions is: 2026 2026 2025 2025 DBO (INCREASE) DBO (INCREASE) DBO (INCREASE) DBO (INCREASE) / DECREASE WITH / DECREASE WITH / DECREASE WITH / DECREASE WITH INCREASE IN DECREASE IN INCREASE IN DECREASE IN ASSUMPTION ASSUMPTION ASSUMPTION ASSUMPTION $000 $000 $000 $000 Discount rate (0.50% movement) 685 (728) 721 (811) Salary growth rate (0.50% movement) (22) 21 (45) 45 Pension growth rate (0.25% movement) (300) 342 (360) 360 Life expectancy (1 year movement) (1,327) 1,370 (1,397) 1,442 Employee Benefits Accounting Policies Defined benefit plans The Group's net obligation with respect to its defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is the yield at the reporting date on bonds that have maturity dates approximating the terms of the Group's obligations. The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognised asset is limited to the lower of the net assets of the Plan or the current value of the contributions holiday that is expected to be generated. Remeasurement of the net defined benefit asset or liability, which comprise actuarial gains and losses and the return on plan assets, are recognised directly in other comprehensive income and the defined benefit plan reserve in equity. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss. Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the undiscounted amount of short-term employee benefits expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Long-term employee benefits Provisions made with respect to employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group with respect to services provided by employees up to the reporting date. Remeasurements are recognised in profit or loss in the period in which they arise.
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Refer to Accounting Policies – page 41. 36 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 20 Financial Instruments – Fair Values and Risk Management A. Accounting classifications and fair values The tables below set out the Group's classification of each class of financial assets and liabilities, and their fair values. FAIR VALUE THROUGH AT AMORTISED TOTAL CARRYING PROFIT OR LOSS COST AMOUNT FAIR VALUE $000 $000 $000 $000 2026 Financial assets Cash and cash equivalents – 3,995 3,995 3,995 Derivative assets 785 – 785 785 Trade and other receivables and contract assets – 182,746 182,746 182,746 GO-STOCK receivables – 91,291 91,291 91,291 Other investments – 242 242 242 785 278,274 279,059 Financial liabilities Debt – (92,000) (92,000) (92,000) Derivative liabilities (691) – (691) (691) Trade creditors – (160,899) (160,899) (160,899) Goods received but not invoiced – (10,177) (10,177) (10,177) Lease liabilities – (100,476) (100,476) (691) (363,552) (364,243) 2025 Financial assets Cash and cash equivalents – 2,613 2,613 2,613 Derivative assets 240 – 240 240 Trade and other receivables and contract assets – 152,490 152,490 152,490 GO-STOCK receivables – 84,262 84,262 84,262 Other investments – 242 242 242 240 239,607 239,847 Financial liabilities Debt – (88,182) (88,182) (88,182) Derivative liabilities (1,576) – (1,576) (1,576) Trade creditors – (125,549) (125,549) (125,549) Goods received but not invoiced – (6,898) (6,898) (6,898) Lease liabilities – (87,148) (87,148) (1,576) (307,777) (309,353) Management assessed that the fair values of cash and cash equivalents, trade receivables, trade creditors and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
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Refer to Accounting Policies – page 41. 37 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 20 Financial Instruments – Fair Values and Risk Management (continued) A. Accounting classifications and fair values (continued) Fair value hierarchy The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows: – Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities – Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) – Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL $000 $000 $000 $000 2026 Derivative assets – 785 – 785 Derivative liabilities – (691) – (691) 2025 Derivative assets – 240 – 240 Derivative liabilities – (1,576) – (1,576) B. Financial management risk The Group's primary risks are those of liquidity and funding, credit and market (foreign currency, price and interest rate) risks. The Group is committed to the management of risk to achieve sustainability of service, employment and profits, and therefore, takes on controlled amounts of risk when considered appropriate. The Board of Directors is responsible for the review and ratification of the Group's systems of risk management, internal compliance and control, code of conduct and legal compliance. The Board maintains a formal set of delegated authorities (including policies for credit and treasury) that clearly define the responsibilities delegated to Management and those retained by the Board. The Board approves these delegated authorities and reviews them annually. The following Management committees review and manage key risks: – The Senior Management Team meets regularly to consider new and emerging risks, review actions required to manage and mitigate key risks, and to monitor progress. – The Credit Committee, comprising of Management appointees, meets regularly to review credit risk, account limits and provisioning. Management formally reports on all aspects of key risks to the Audit Committee at least two times each year. (i) Liquidity and funding risks Liquidity risk is the risk that the Group will encounter difficulties in raising funds at short notice to meet commitments associated with financial instruments. Funding risk is the risk of over-reliance on a funding source to the extent that a change in that funding source could increase overall funding costs or cause difficulty in raising funds. The Group manages liquidity risk by forecasting daily cash requirements and future funding requirements, and maintaining an adequate liquidity headroom. The Group monitors its liquidity daily, weekly and monthly and maintains appropriate liquid assets and committed bank funding facilities to meet all obligations in a timely and cost efficient manner. The Group has a policy of funding diversification and utilises a banking syndicate to limit concentration risk in relation to liquidity and funding. The funding policy augments the Group's liquidity policy with its aim to ensure the Group has a stable diversified funding base without over-reliance on any one market sector. The objectives of the Group's funding and liquidity policy is to: – Ensure all financial obligations are met when due; – Provide adequate protection, even under crisis scenarios; and – Achieve competitive funding within the limitations of liquidity requirements.
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Refer to Accounting Policies – page 41. 38 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 20 Financial Instruments – Fair Values and Risk Management (continued) B. Financial management risk (continued) (i) Liquidity and funding risks (continued) Contractual maturity analysis The following schedule analyses the Group's financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date (reported on an undiscounted basis). History demonstrates that such accounts provide a stable source of long term funding for the Group. CONTRACTUAL CASH FLOW AMOUNT IN STATEMENT OF WITHIN BEYOND FINANCIAL 12 MONTHS 1 TO 5 YEARS 5 YEARS TOTAL POSITION $000 $000 $000 $000 $000 2026 Debt 6,743 107,172 – 113,915 92,000 Derivative liabilities 663 28 – 691 691 Trade creditors 160,899 – – 160,899 160,899 Goods received but not invoiced 10,177 – – 10,177 10,177 Lease liabilities 27,597 63,878 32,514 123,989 100,476 206,079 171,078 32,514 409,671 364,243 2025 Debt 7,029 95,079 – 102,108 88,182 Derivative liabilities 1,425 151 – 1,576 1,576 Trade creditors 125,549 – – 125,549 125,549 Goods received but not invoiced 6,898 – – 6,898 6,898 Lease liabilities 24,869 62,971 8,954 96,794 87,148 165,770 158,201 8,954 332,925 309,353 Changes in liabilities arising from financing activities LEASE CHANGES IN ADDITIONS AND 1 JUL 2025 CASHFLOW FAIR VALUE MODIFICATIONS 30 JUN 2026 $000 $000 $000 $000 $000 Debt 88,182 3,818 – – 92,000 Lease liabilities 87,148 (24,030) – 37,358 100,476 Total liabilities from financing activities 175,330 (20,212) – 37,358 192,476 LEASE CHANGES IN ADDITIONS AND 1 JUL 2024 CASHFLOW FAIR VALUE MODIFICATIONS 30 JUN 2025 $000 $000 $000 $000 $000 Debt 63,000 25,182 – – 88,182 Lease liabilities 96,666 (22,608) – 13,090 87,148 Total liabilities from financing activities 159,666 2,574 – 13,090 175,330
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Refer to Accounting Policies – page 41. 39 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 20 Financial Instruments – Fair Values and Risk Management (continued) B. Financial management risk (continued) (ii) Credit risk Credit risk is the potential for loss that could occur as a result of a counterparty failing to discharge its obligations. This may be due to extreme weather events or volatility in commodity prices. Concentrations of credit risk Financial instruments which potentially subject the Group to concentrations of credit risk principally consist of bank balances, trade receivables, GO-STOCK receivables, other receivables, other investments and forward foreign exchange contracts. The Group places its cash with three major trading banks. Concentrations of credit risk with respect to trade and GO-STOCK receivables are limited due to the large number of customers included in the Group's farming customer base in New Zealand. (iii) Market risk Market risk is the potential for change in the value recorded in the Statement of Financial Position caused by a change in the value, volatility or relationship between market risks and prices. Market risk arises from the mismatch between assets and liabilities, both on and off balance sheet. Market risk includes price, foreign currency and interest rate risk which are explained as follows: Concentrations of market risk The Group has exposure to commodity pricing risk on wool and velvet inventories and forward wool and velvet sales and purchase contracts. This is mitigated by the Group having policies around unmatched positions. Other inventory is of merchandise nature and the Group has a range of suppliers or has entered into long-term supply agreements. Foreign currency risk The Group undertakes transactions denominated in foreign currencies and exposure to movements in foreign currency arises from these activities. The Group manages this risk by using forward foreign exchange contracts to hedge foreign currency risks as they arise. Foreign currency exposure risk The Group's exposure to foreign currency risk is summarised below. The notional forward exchange cover includes forward foreign exchange contracts entered into to economically hedge forward sale and purchase commitments. GBP USD AUD CHF EURO NZ$000 NZ$000 NZ$000 NZ$000 NZ$000 2026 Cash and cash equivalents – 1 1 – 2 Trade receivables 231 2,262 1 – 5,107 Trade creditors (1,762) (17,264) (322) – (2,718) Net amount recorded within the Statement of Financial Position (1,530) (15,000) (320) – 2,392 Forward exchange contracts on the above items and forward sale and purchase commitments Notional forward exchange cover 884 11,154 (563) (654) (17,943) Net unhedged position (2,414) (26,154) 243 654 20,334 2025 Cash and cash equivalents – – – – 346 Trade receivables 456 1,429 445 – 5,900 Trade creditors (2,035) (11,815) (790) – (3,956) Net amount recorded within the Statement of Financial Position (1,579) (10,386) (345) – 2,290 Forward exchange contracts on the above items and forward sale and purchase commitments Notional forward exchange cover 426 5,988 355 – (19,101) Net unhedged position (2,004) (16,374) (700) – 21,391
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Refer to Accounting Policies – page 41. 40 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 20 Financial Instruments – Fair Values and Risk Management (continued) B. Financial management risk (continued) (iii) Market risk (continued) Interest rate risk Floating rate borrowings are used for general funding activities. Interest rate risk is the risk that the value of financial instruments and the interest margin will fluctuate as a result of changes in market interest rates. The risk is that financial assets may be repriced at a different time and/or by a different amount than financial liabilities. This risk is managed by operating within approved policy limits using an interest rate duration approach. Interest rate swaps, interest rate options and forward rate agreements may be used to hedge the floating rate exposure as deemed appropriate. The Group had no interest rate derivatives at 30 June 2026 (2025: Nil). Interest rate repricing schedule The following tables include the Group's liabilities at their carrying amounts, categorised by the earlier of contractual repricing or maturity dates: WITHIN 1 TO 2 OVER NON-INTEREST 12 MONTHS YEARS 2 YEARS BEARING TOTAL $000 $000 $000 $000 $000 2026 Debt – – 92,000 – 92,000 Derivative liabilities – – – 691 691 Trade creditors – – – 160,899 160,899 Goods received but not invoiced – – – 10,177 10,177 – – 92,000 171,767 263,767 2025 Debt – 88,182 – – 88,182 Derivative liabilities – – – 1,576 1,576 Trade creditors – – – 125,549 125,549 Goods received but not invoiced – – – 6,898 6,898 – 88,182 – 134,023 222,205 Sensitivity analysis The Group's treasury policy effectively insulates earnings from the effect of short-term fluctuations in either foreign exchange or interest rates. Over the longer term however, permanent changes in foreign exchange rates and interest rates will have an impact on the profit or loss. A 2% change in interest rate has been modelled as it is considered a reasonably possible change (2025: 2%). The sensitivity of net profit after tax for the year ended 30 June 2026 and 30 June 2025, and shareholders equity as at those dates, to reasonably possible changes in conditions is shown below. INTEREST RATES INTEREST RATES INTEREST RATES INTEREST RATES INCREASE BY 2% INCREASE BY 2% DECREASE BY 2% DECREASE BY 2% 2026 2025 2026 2025 $000 $000 $000 $000 Increase/(decrease) in net profit after tax and shareholders' equity (1,887) (1,475) 1,927 1,458 Other market risks such as pricing and foreign exchange are not considered likely to lead to material change over the next reporting period. The Group's financial assets and liabilities are predominantly held in New Zealand Dollars (NZD). For this reason, a sensitivity analysis of these market risks is not included. C. Capital management The capital of the Group consists of share capital, reserves, and retained earnings. The policy of the Group is to maintain a strong capital base so as to maintain investor, creditor and market confidence while providing the ability to develop future business initiatives. This policy has not been changed during the period.
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41 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 20 Financial Instruments - Fair Values and Risk Management (continued) Non-Derivative Financial Instruments Accounting Policies (i) Non-derivative financial assets Non-derivative financial assets comprise cash and cash equivalents, trade and other receivables, GO-STOCK receivables and investments in equity and debt securities. The Group initially recognises financial assets on the date at which the Group becomes a party to the contractual provisions of the instrument, although trade receivables are initially recognised when they are originated. Financial assets are initially measured at fair value. If the financial asset is not subsequently measured at fair value through profit or loss, the initial investment includes transaction costs that are directly attributable to the asset's acquisition or origination. The Group subsequently measures financial assets at either fair value or amortised cost. Financial assets measured at amortised cost A financial asset is subsequently measured at amortised cost using the effective interest method and net of any impairment loss, if: – the asset is held within a business model with an objective to hold assets in order to collect contractual cash flows; and – the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest. Financial assets measured at fair value Financial assets other than those classified as financial assets measured at amortised cost are subsequently measured at fair value with all changes recognised in the profit or loss. However, for investments in equity instruments that are not held for trading, the Group may elect at initial recognition to present gains and losses through other comprehensive income. For instruments measured at fair value through other comprehensive income gains and losses are never reclassified to profit or loss and no impairments are recognised in profit or loss. Cash and cash equivalents Cash and cash equivalents include cash on hand and deposits held on call with banks. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents. Trade and other receivables and GO-STOCK receivables Trade and other receivables and GO-STOCK receivables are stated at their amortised cost less impairment losses. (ii) Non-derivative financial liabilities Interest-bearing borrowings Interest-bearing borrowings are classified as other financial liabilities and are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. Trade and other payables Trade and other payables are recognised at cost and are subsequently measured at amortised cost using the effective interest method after initial recognition. (iii) Determination of fair values for non-derivative financial instruments Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
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42 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 21 Commitments A. Capital expenditure not provided for The Group has capital commitments of $0.53 million as at 30 June 2026 (2025: $0.48 million). B. Forward purchase commitments The Group as part of its ordinary course of business enters into forward purchase agreements with wool and velvet growers. These commitments extend for periods of up to 2 years and are at varying stages of execution. There remains uncertainty associated with yield, quality and market price. Therefore, the Group is unable to sufficiently quantify the value of these commitments. C. Forward sales commitments The Group as part of its ordinary course of business enters into forward sales agreements with wool and velvet customers. These commitments extend for periods of up to 2 years and are at varying stages of execution. There remains uncertainty associated with yield, quality and market price. Therefore, the Group is unable to sufficiently quantify the value of these commitments. 22 Contingent Liabilities A. PGG Wrightson Loyalty Reward Programme The Group recognises a provision for the expected level of points redemption from the PGG Wrightson Max Rewards loyalty reward programme. At the reporting date, the balance of live points which does not form part of the recognised provision total $0.12 million (2025: $0.10 million). Losses are not expected to arise from this contingent liability. Revenue in respect of the loyalty reward programme is deferred until such time as the reward is claimed by the customer. B. Claims The Group receives client claims as part of the ordinary course of business in the supply of goods and services. The Group will pursue recovery of claims with suppliers where appropriate under terms of trade. Accordingly, the amount of any potential obligation in respect of these claims cannot be estimated with sufficient reliability. 23 Seasonality of Operations The Group is subject to significant seasonal fluctuations. The Group's earnings are weighted towards the first half of the financial year and are primarily related to the Retail business, as demand for New Zealand farming inputs are generally weighted towards the spring season. The second half earnings predominantly relate to Livestock trading as farmers seek to maximise their income following New Zealand's spring calving and lambing season. Other business units have similar but less material seasonal fluctuations. The Group recognises that this seasonality is the nature of the industry and plans and manages its business accordingly. 24 Subsequent Events Dividend On 10 August 2026, the Directors of PGG Wrightson Limited resolved to pay a final dividend of 5.5 cents per share on 6 October 2026 to shareholders on the Company's share register as at 5.00pm on 11 September 2026. This dividend will be fully imputed.
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43 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 25 Related Parties A. Key management personnel compensation 2026 2025 $000 $000 Short-term employee benefits 4,980 4,779 Post-employment benefits 203 114 5,183 4,893 B. Other transactions with key management personnel Certain key management personnel (including one director) or their related parties have transacted with the Group during the reporting period. The aggregate value of these transactions and outstanding balances (on a GST inclusive basis) were as follows: TRANSACTION BALANCE TRANSACTION BALANCE VALUE OUTSTANDING VALUE OUTSTANDING KEY MANAGEMENT 2026 2026 2025 2025 PERSONNEL TRANSACTION $000 $000 $000 $000 Nick Berry Purchase of retail goods 2 – 2 – Julian Daly Purchase of retail goods – – 1 – Stephen Guerin Purchase of retail goods, power on-charge transactions and livestock transactions 63 – 13 – Peter Newbold Purchase of retail goods and fuel on-charge transactions 3 – 31 – Peter Scott Fuel on-charge transactions 2 – 4 – John Nichol Purchase of retail goods (appointed 14 October 2025) 130 2 – – 26 Reporting Entity PGG Wrightson Limited (the "Company") is a company domiciled in New Zealand and registered under the Companies Act 1993 in New Zealand. The Company's registered office is at 1 Robin Mann Place, Christchurch. The Company is listed on the New Zealand Stock Exchange and is an FMC Reporting Entity for the purposes of the Financial Markets Conduct Act 2013. The consolidated financial statements of PGG Wrightson for the year ended 30 June 2026 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group is primarily involved in the provision of goods and services within the agricultural and horticultural sectors. OWNERSHIP INTEREST COUNTRY OF 2026 2025 SIGNIFICANT SUBSIDIARIES INCORPORATION DIRECT PARENT % % Bidr Limited New Zealand PGG Wrightson Limited 100 100 Bloch & Behrens Wool (NZ) Limited New Zealand PGG Wrightson Limited 100 100 NZ Agritrade Limited New Zealand PGG Wrightson Limited 100 100 PGG Wrightson Employee Benefits Plan Trustee Limited New Zealand PGG Wrightson Limited 100 100 PGG Wrightson Investments Limited New Zealand PGG Wrightson Limited 100 100 PGG Wrightson Real Estate Limited New Zealand PGG Wrightson Limited 100 100 Nexan Corporation Limited New Zealand PGG Wrightson Limited 100 – Nexan Limited New Zealand PGG Wrightson Limited 100 –
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44 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 27 Basis of Preparation A. Statement of compliance These consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board, the New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting Standards, as appropriate for a Tier 1 for-profit entity. These consolidated financial statements have also been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. B. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for the following: – Derivative financial instruments are measured at fair value. C. Functional and presentation currency These consolidated financial statements are presented in New Zealand dollars ($), which is the functional currency of each of the Group entities. All amounts have been rounded to the nearest thousand, unless otherwise indicated. D. Use of estimates and judgements In preparing these consolidated financial statements, Management has made judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates and assumptions. Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively. Information about critical judgements made in applying accounting policies, assumptions and estimation uncertainties that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: Note 11 Carrying value of trade and other receivables 12 Carrying value of GO-STOCK receivables 13 Carrying value of inventories 15 Acquisition of subsidiary 19 Measurement of defined benefit asset/(liability) – key actuarial assumptions E. Comparative information Certain comparative amounts have been reclassified to conform with the current reporting period’s presentation.
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45 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 28 Other Material Accounting Policies The accounting policies set out in these consolidated financial statements have been applied consistently to all reporting periods presented in these consolidated financial statements, and have been applied consistently by Group entities. A. Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Transactions eliminated on consolidation Intra-group balances, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. B. Foreign currency Transactions in foreign currencies are translated to the respective functional currencies of the group entities at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to the functional currency at the exchange rate at the date that fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated to the functional currency at the exchange rate at the date of the transaction. Foreign currency differences arising are recognised in profit or loss. C. Disclosure of non-GAAP financial information Non-GAAP reporting measures have been presented in the consolidated statement of profit or loss or referenced to in the notes to the consolidated financial statements. The following non-GAAP measures are relevant to the understanding of the Group's financial performance: – Operating EBITDA represents earnings before net interest expense, foreign exchange items, income tax, depreciation, amortisation, the results from discontinued operations, impairments and fair value adjustments and non-operating items. – EBIT represents earnings before net interest expense, foreign exchange items, income tax expense and the results from discontinued operations. The Directors and Management believe the Operating EBITDA and EBIT measures provide useful information as they provide valuable insight on the underlying performance of the business. They are used internally to evaluate the underlying performance of the business and to analyse trends. These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may not be comparable with similarly titled measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in accordance with NZ IFRS. D. Standards issued but not yet effective The new and amended standards and interpretations that are issued, but have not yet commenced to apply, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective. NZ IFRS 9 and NZ IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments Amendments have been issued which clarify requirements relating to the classification and measurement of financial instruments and introduce additional disclosure requirements. These amendments are effective for reporting periods beginning on or after 1 January 2026, with earlier application permitted. The Group does not expect these amendments will have a material impact on the Group's financial statements and/or notes to the financial statements.
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46 | ADDITIONAL FINANCIAL DISCLOSURES PGG WRIGHTSON LIMITED Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2026 28 Other Material Accounting Policies (continued) D. Standards issued but not yet effective (continued) IFRS 18 Presentation and Disclosure in Financial Statements In May 2024, the XRB issued NZ IFRS 18 – Presentation and Disclosure in Financial Statements to improve reporting of financial performance. NZ IFRS 18 replaces NZ IAS 1 – Presentation of Financial Statements. It carries forward many requirements from NZ IAS 1 unchanged and introduces increased disclosure of management defined performance measures as well as new principles for aggregation and disaggregation of information included in the consolidated statement of profit or loss. NZ IFRS 18 is effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted for accounting periods that end after 20 June 2024 and must be disclosed. NZ IFRS 18 will apply retrospectively. The Group continues to work to identify all impacts the amendments will have on the primary financial statements and notes to the financial statements. There were no new standards, amendments or interpretations adopted during the year that had a material impact on the Group's financial statements. 29 Capital and Reserves Share capital All shares are ordinary fully paid shares with no par value, carry equal voting rights and share equally in any profit on the winding up of the Group. Realised capital and revaluation reserve The realised capital reserve comprises the cumulative net capital gains that have been realised. The revaluation reserve relates to historic revaluations of property, plant and equipment. Defined benefit plan reserve The defined benefit plan reserve contains actuarial gains and losses on plan assets and defined benefit obligations. During the year ended 30 June 2026, an amount of $0.15 million, which represents the Employee Superannuation Contribution Tax (ESCT) on the lump sum cash contribution, was transferred from the defined benefit reserve to retained earnings (30 June 2025: $0.10 million). Retained earnings/deficit The retained earnings or deficit equals accumulated undistributed profits or losses. Dividends The following dividends were declared and paid by the Company. PAYMENT DATE $ PER SHARE 2026 interim dividend – fully imputed 08-Apr-26 0.045 2025 final dividend – fully imputed 03-Oct-25 0.040 Share Capital Accounting Policies Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. Repurchase of ordinary shares When shares recognised as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares are cancelled. However, treasury stock for which unrestricted ownership has not yet been transferred are not cancelled.
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A member firm of Ernst & Young Global Limited I ndependent auditor’s report to the shareholders of PGG Wrightson Limited Opinion We have audited the financial statements of PGG Wrightson Limited (the “Company”) and its subsidiaries (together the “Group”) on pages 1 to 46, which comprise the consolidated statement of financial position of the Group as at 30 June 2026, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended of the Group, and the notes to the consolidated financial statements including material accounting policy information. In our opinion, the consolidated financial statements on pages 1 to 46 present fairly, in all material respects, the consolidated financial position of the Group as at 30 June 2026 and its consolidated financial performance and cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards. This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might state to the Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company ’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board as applicable to audits of financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with Professional and Ethical Standard 1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Ernst & Young provides research and development taxation incentive services to the Group. Partners and employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other relationship with, or interest in, the Group. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
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A member firm of Ernst & Young Global Limited We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of the audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements. Provisions for impairment of trade and GO-STOCK receivables Why significant How our audit addressed the key audit matter At 30 June 2026, the consolidated statement of financial position includes trade and GO-STOCK receivables of $277.8 million, representing 46% of the Group’s total assets. The receivables balance is reported net of impairment provisions for trade and GO-STOCK receivables of $6.4 million. This is a key audit matter because of the judgement involved in assessing the adequacy of the impairment provisions. Management’s assessment of recoverability requires consideration of historical loss experience, customer-specific circumstances, and forward- looking economic information, all of which involve estimation uncertainty. Disclosures in relation to trade and GO-STOCK receivables and the related impairment provisions are included in notes 11 and 12 of the Group financial statements. Our audit procedures included the following: • obtained an understanding of management’s receivables provisioning process; • assessed management’s provisioning methods and whether they comply with NZ IFRS 9 Financial Instruments; • considered the inputs, assumptions and estimates used or made by management; • tested the ageing of receivables by agreeing the recorded ageing of a sample of trade receivables to sales documentation; • considered sector-based performance indicators, including commodity price movements for beef and sheep and sector outlooks, to: o assess the appropriateness of management’s considerations and judgements in receivables provisioning, and o consider indications of any material change in credit risk on trade and GO-STOCK receivables; • considered the appropriateness and sufficiency of the disclosures related to trade and GO-STOCK receivables provisioning.
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A member firm of Ernst & Young Global Limited Inventory valuation Why significant How our audit addressed the key audit matter At 30 June 2026, the consolidated statement of financial position includes inventory totalling $105.5 million, net of a provision for inventory write-down of $2.7 million. Inventories are valued at the lower of cost and the net realisable value (‘NRV’). The NRV of inventories is the estimated selling price in the ordinary course of business less estimated cost to sell. In assessing this provision, consideration of the realisable value of slow moving or obsolete inventories is required. This is a key audit matter because of the significance of inventory to the Group’s financial position and because the cost of inventory includes adjustments to reflect variable pricing arrangements with suppliers, which require estimation. Disclosures in relation to inventory and the inventory provision are included in note 13 to the Group financial statements. Our audit procedures included the following: • tested a sample of recorded inventory cost to supplier invoices; • assessed the inputs into, and calculation of, adjustments to inventory value to take account of variable pricing arrangements with suppliers; • confirmed with a sample of suppliers the amount of purchases from them subject to variable pricing arrangements for the year, and the amounts receivable from them at year end; • tested a sample of inventory items to subsequent sales and evaluated the appropriateness of management’s provision for inventory write -down, which takes account of slow-moving and obsolete inventory; • considered the appropriateness and sufficiency of the disclosures related to the valuation of inventory. Information other than the financial statements and auditor’s report The directors of the Company are responsible for the other information. The other information comprises the annual report, but does not include the financial statements and our auditor’s report thereon. The other information is expected to be made available to us after the date of this auditor’s report. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and, if uncorrected, to take appropriate action to bring the matter to the attention of users for whom our auditor’s report was prepared. Directors’ responsibilities for the financial statements The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the consolidated financial statements in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial Reporting Standards, and for such internal
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A member firm of Ernst & Young Global Limited control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the directors are responsible for assessing on behalf of the entity 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 cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (New Zealand) 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 these consolidated financial statements. A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External Reporting Board’s website: https://www.xrb.govt.nz/standards/assurance- standards/auditors-responsibilities/audit-report-1-1/. This description forms part of our auditor’s report. The engagement partner on the audit resulting in this independent auditor ’s report is Brendan Summerfield. Chartered Accountants Christchurch 10 August 2026