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WasteCo FY25 Annual Report release and CE resignation

Annual Report30 May 2025WCOIndustrials

30 May 2025

WasteCo FY25 Annual Report release and CE resignation

WasteCo Group Limited today announced that Chief Executive Officer David Peterson has advised the

Board of his intention to step down from his role, effective at the end of June 2025.

David has informed the Board that he will be moving back to Australia to join his family.

WasteCo Chair Roger Gower said, “On behalf of the Board and the entire WasteCo team, I want to

thank David for his outstanding service. He has led the company through a dynamic period of growth

and change, including the integration of key acquisitions and the strengthening of our presence

across the South Island and into the North Island.

“We respect and support his personal decision and wish David and his family all the very best for the

future,” says Roger Gower.

“Last week we announced that we had been awarded a $40 million, nine-year Solid Waste

Management contract with Ashburton District Council (ADC). This achievement reflects David’s

strategic leadership and the dedication of the wider WasteCo team. The contract represents a

significant milestone in the company’s continued growth,” says Roger Gower.

Today WasteCo released its Annual Report. The 2025 financial year saw WasteCo maintain its

commitment to sustainable sales growth and operational efficiency. The Group reported a sales

increase of $8.18 million and a rise in operating EBITDA of $1.27 million, reflecting a positive shift in

performance.

“While our bottom-line result is disappointing, the underlying trend is positive. WasteCo enters the

new financial year with a leaner operating model, a clearer strategic direction, and the early benefits

of consolidation and renewal,” says Roger Gower. “Our focus in 2025/26 will be on translating these

foundations into consistent financial performance and long-term value for shareholders.”

The Board has commenced a formal search for a new Chief Executive Officer. In the interim,

Chairman Roger Gower will assume an Executive role to ensure a smooth leadership transition and to

continue oversight of the company’s safety and operational reset already underway.

David has confirmed he will be available to the company in a consultative capacity post-departure to

ensure continuity, particularly in relation to the recent award of the ADC contract and ongoing

operational priorities


ENDS

Erin Jamieson |WasteCo Media Contact | erin@conv.co.nz | 021 743 237

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Results announcement




Results for announcement to the market

Name of issuer WasteCo Group Limited

Reporting Period 12 months to 31 March 2025

Previous Reporting Period 12 months to 31 March 2024

Currency NZD

Amount (000s) Percentage change

Revenue from continuing

operations

$56,409 17.0%

Total Revenue

$56,409

17.0%

Net profit/(loss) from

continuing operations

$(9,854)

138.3%

Total net profit/(loss)

$(9,854)

138.3%

Interim/Final Dividend

Amount per Quoted Equity

Security

The Company does not propose to pay a dividend at this time.

Imputed amount per Quoted

Equity Security

Not applicable

Record Date Not applicable

Dividend Payment Date Not applicable

Current period Prior comparable period

Net tangible assets per

Quoted Equity Security

$0.0054 $0.0121

A brief explanation of any of

the figures above necessary

to enable the figures to be

understood

Refer to the Annual Report for the year ended 31 March 2025

that accompanies this announcement.

Authority for this announcement

Name of person


authorised

to make this announcement

Nigel Franklin

Contact person for this

announcement

Nigel Franklin

Contact phone number 029 983 3871

Contact email address Nigel.franklin@wasteco.co.nz

Date of release through MAP


30 May 2025


Audited financial statements accompany this announcement.

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Annual Report
2025

WasteCo Group Limited

Making waste work
for communities means more

than recycling.

It’s about being there

—after the flood, during the festival,

and every day in between—

delivering safe, reliable services

that people can count on.

Annual Report 2025334569127802We7'r r69c
Contents

Welcome

Who we are

Our purpose

Highlights of our year

Sector performance

Chair’s report

CEO’s report

Opportunities and trends

Making waste work for communities

Board of Directors

Corporate Governance Statement

Consolidated Financial Statements

Notes to the Consolidated Financial Statements

Auditor’s report

Shareholder and Statutory Information

Company directory

4

5

6

7

9

11

14

18

19

23

26

36

43

94

97

110

Annual Report 2025434569127802We7'r r69c
Welcome

At WasteCo, we understand that our success is built on

strong, enduring relationships—with the councils we partner,

the households we serve, and the commercial and industrial

clients who trust us to deliver. Our commitment to customer

satisfaction, health and safety, and environmental

responsibility underpins everything we do.

Our strategy remains focused on running our current operations

well, while pursuing strategic acquisitions that support our goal

of building a successful nationwide waste solutions business.

Building strong

foundations for

a sustainable future

Annual Report 2025534569127802We7'r r69c
Who we are

Over the past year, we’ve continued to grow organically and

through strategic acquisitions, securing long-term contracts that

underpin our momentum and provide a strong foundation

for future success.

Looking ahead, our unwavering focus is on improving our

health and safety, while at the same time accelerating sales

growth. We are optimising our operations for peak efficiency

and investing in groundbreaking technologies—all to strengthen

our market position and unlock new revenue opportunities.

As we scale success, strategic acquisitions will play a key role

in driving expansion and securing long-term growth.

These efforts will drive WasteCo’s growth and long-term

value for our shareholders.

We’re proud to be one of New Zealand’s leading

waste management providers

Annual Report 2025634569127802We7'r r69c
Our purpose

At WasteCo, we see ourselves as more than

just a waste company, we’re stewards

of the full waste lifecycle

Our responsibility goes beyond diversion; it’s about

recovering resources, protecting public health, and helping

our communities, councils and business partners meet

their environmental goals.

Our mission is simple: to deliver smarter, safer,

and more sustainable waste solutions that make a real

difference and deliver cleaner environments.

Highlights of our year
Improved profitability

Strategic expansion

Major new investment

Revenue growth

Sales increased from $48 million

to $56 million, marking strong

year-on-year growth

The NZ$15 million

investment we

secured from Empire

Waste Technology

supported the Civic

Waste acquisition and

reinforced our platform

for future growth

Our operating EBITDA

rose by $1.27 million,

reflecting an uplift

in performance

We successfully

expanded into

the North Island

through our acquisition

of Civic Waste

Strong
shareholder

support

Strengthened governance

Cleaner Antarctica Initiative

Productivity gains

Our NZ$5 million

Share Purchase Plan

was fully subscribed,

demonstrating investor

confidence in our

strategy and direction

Appointed a new

Board Chair and welcomed

additional directors in

December 2024, enhancing

our leadership capability

We continued

our partnership with

Antarctica New Zealand,

managing frozen waste

on the ice to protect one

of the world’s most

pristine environments

We prioritised

operational efficiency,

unlocking synergies

and maximising

asset utilisation

Sustainable fleet transition

We introduced hybrid

Toyota RAV4s into the sales fleet

and added a Polestar 2 EV to

the WasteCo fleet, reinforcing

our commitment to sustainability

Annual Report 2025934569127802We7'r r69c
Sector performance

New Zealand’s waste management sector sits at the intersection

of essential public service and industrial infrastructure, making

it both resilient and exposed to broader economic trends.

This past year has illustrated both sides of that dynamic.

Overall sector performance in FY2024/25 was subdued, reflecting

broader macroeconomic conditions. Slower GDP growth, the

slowdown in manufacturing, and delayed investment across

construction and infrastructure projects, led to reduced waste

volumes in key commercial and industrial segments.

However, core municipal services have remained stable,

underpinned by long-term contracts and the non-discretionary

nature of household and civic waste collection. This consistency

provides a foundation of reliability for operators like WasteCo,

even in turbulent times.

Environmental regulation has also played a dual role. While

compliance costs have increased across the sector, heightened

scrutiny and tighter standards are creating opportunities for

innovation and differentiation, particularly for providers with the

scale and systems to respond effectively.

Our strategy
Deliver cleaner

environments

Make acquisitions

in core areas

Focus

on our team

Optimise our

current business

Annual Report 20251134569127802We7'r r69c
Chair’s report

At our core, WasteCo is in the business

of making waste work better, for the

communities, councils and businesses we

serve. But managing waste well means much

more than just diverting it. It means taking

responsibility from end to end—being there

during the event and turning up after the

flood to clear culverts. It means earning

and maintaining the trust of our partners

through safe, reliable service. And it means

protecting our people by embedding rigorous

risk management and learning from the

toughest of challenges.

This year, we were deeply tested. The

tragic death of our colleague Lynda Kelly

shook us all and it is a loss that will remain

with us. The Board extends its heartfelt

condolences to Lynda’s family, friends, and

teammates. We were, and remain, deeply

concerned. As directors, we carry the

weight of ensuring that such an incident

never happens again. In the weeks since,

we have acted with urgency and care,

embedding stronger accountability for

safety at every level of the business.

The 2025 financial year saw WasteCo maintain its commitment

to sustainable sales growth and operational efficiency.

The Group reported a sales increase of NZ$8.18 million and a

rise in operating EBITDA of NZ$1.27 million, reflecting a positive

shift in performance. However, despite these improvements, the

Group recorded a total comprehensive loss of NZ$9.85 million

(2024: NZ$4.14 million loss). This result was primarily influenced

by several one-off and non-operational factors, including

restructuring costs of NZ$1.76 million, acquisition-related

expenses of NZ$605k and ongoing finance costs amounting

to NZ$5.1 million.

Financial

outlook

Annual Report 20251234569127802We7'r r69c
These exceptional costs reflect a year of strategic transformation

as WasteCo continues to reshape its operations for long-

term sustainability and growth. The company is in a transition

phase, positioning itself for future growth through acquisition,

consolidation and efficiency. Notably, the acquisition activity

undertaken during the year supports our growth ambitions.

An income tax benefit of NZ$1.14 million partially offset the net

loss, recognising the impact of restructuring and investment

on taxable earnings.

Setting

the building blocks

in place

Waste volumes and service demand

in New Zealand are closely tied to industrial

activity, population growth and construction

—all of which have been impacted in the last

twelve months due to a slow down in the

economy, which has been slower to rebound

than anticipated. However we’ve maintained

a clear focus on productivity and efficiency,

which is now underpinning our ability to

drive performance and win new business

across the country.

Strengthening our national footprint

remains a cornerstone of our long-term

strategy. We continue to diversify across

sectors and build deeper partnerships with

major enterprises—enhancing both the

resilience and reach of our business.

The municipal and public service sector

provides a stable foundation, and we are

focused on growing WasteCo’s presence

as a trusted provider nationally.

Strategic investment is critical to our long-

term value creation. The acquisition of Civic

Waste significantly extended our geographic

coverage and improved our capacity to

service large, multi-regional contracts.

Upgrades to our fleet and the overhaul of our

health and safety systems are more than

operational improvements—they are key

investments in reliability, risk mitigation

and our reputation. These initiatives ensure

we are well-positioned to scale efficiently

and meet increasing demand as economic

conditions improve.

The NZ$15 million investment from

Empire Waste Technology Limited, via

Convertible Note, was instrumental in

supporting the Civic Waste acquisition

and strengthening our platform for future

growth. Our NZ$5 million Share Purchase

Plan also met with strong investor demand,

reflecting confidence in our strategy and

growth trajectory.

Annual Report 20251334569127802We7'r r69c
While the bottom-line result is disappointing, the underlying

trend is positive. WasteCo enters the new financial year with

a leaner operating model, a clearer strategic direction, and

the early benefits of consolidation and renewal.

Our focus in 2025/26 is on translating these foundations

into consistent financial performance and long-term value

for shareholders.

We are well-positioned to prosper as macro-economic

conditions improve next year, and we continue to investigate

and execute upon further investment and acquisition

opportunities in New Zealand’s fragmented waste sector.

On behalf of the Board, I want to thank our team for their

commitment, our partners for their continued support

and our shareholders for their confidence. Together, we are

building a stronger, more resilient WasteCo.

Roger Gower

Chair

Looking ahead

Annual Report 20251434569127802We7'r r69c
CEO’s report

Prioritising health,

safety

and wellbeing

The safety and wellbeing of our people

is our highest priority. For the senior

leadership team, health and safety is not

simply a compliance obligation—it is the

most important responsibility we carry.

Good safety is good business, but more

importantly, nothing matters more than

making sure every team member goes

home safely at the end of each day.

The tragic loss of Lynda Kelly, a valued

member of our team, who lost her life in an

accident at our Te Anau site in May 2025

was devastating. Although the incident

occurred outside the reporting period, its

impact has been deeply felt across our

organisation. Our thoughts remain with

Lynda’s family, friends, and colleagues

during this incredibly difficult time.

We are working closely with WorkSafe

to fully understand the circumstances

surrounding the incident and to ensure

any lessons are implemented without delay.

In the immediate aftermath, we undertook

a comprehensive operational review across

all six of our transfer stations and

started an internal investigation.

These assessments and our review have

reinforced our commitment to identifying,

understanding and managing every critical

risk within our operations.

We remain resolute in our commitment to

building a culture where safety is embedded

in every decision, every action and every

site across our business.

Prior to this tragedy, we had already launched a major

health and safety initiative, A Road to a Safer Tomorrow.

This programme is a company-wide effort to embed a stronger

safety culture at every level of our organisation. We are reviewing

and redesigning our safety policies, procedures and training

frameworks to ensure they are practical, relevant and fit for

purpose—especially in the diverse environments where our

people work, from urban centres to remote locations.

We are also implementing clearer safety expectations,

measurable performance indicators and stronger accountability

for both leadership and frontline teams. Increased investment

in training, field engagement and fleet upgrades reflect our

commitment to reducing physical risks across the business.

Annual Report 20251534569127802We7'r r69c
The loss of a colleague is a stark and painful reminder of why this

work matters. It strengthens our resolve to do better and be better.

Our commitment to continuous improvement in health and safety

is unwavering, and we will take every necessary step to protect our

people to ensure they return home safely each day.

Since the reporting period, we are

proud to announce that WasteCo has

secured a significant new partnership

with Ashburton District Council. The

nine-year, $40 million contract will see

WasteCo deliver comprehensive waste

management services to more than

12,000 households and facilities across

the district, with potential for a further

nine-year extension.

The scope of the contract includes

kerbside rubbish and recycling collection,

operation of the district’s resource

recovery parks in Ashburton and Rakaia,

and management of school and rural

recycling drop-off sites.

This represents a major milestone for

the company’s national growth strategy

and is the first major waste contract

awarded to WasteCo in the Canterbury

region. It allows us to deliver innovative,

future-focused waste solutions that

enhance service delivery, environmental

performance and community outcomes.

The contract, which commences

on 1 September 2026, will support

23 full-time employees and involves the

purchase of nine new collection vehicles

and associated plant.

Diverse operations

In FY2024 we expanded our operational

footprint into Southland, Central Otago

and the top of the South Island through

three strategic acquisitions. Establishing

a strong presence in these regions has been

key to our continued growth and ability

to deliver integrated services to both

new and existing customers.

Our acquisition of Civic Waste in FY2025

has significantly increased our position

as a truly national operator, enhancing our

North Island presence while complementing

our established South Island network. The

integration has progressed well, enabling us

to broaden our service offering and compete

for large-scale, multi-site contracts across

priority sectors such as retail, education and

residential services.

ASHBURTON

DISTRICT COUNCIL

AWARDS WASTECO

MULTI-MILLION-DOLLAR

CONTRACT

A strong foundation

for growth

Annual Report 20251634569127802We7'r r69c
We remain focused on

improving our core business

through critical risk

management, cost efficiency,

sales growth and operational

excellence. While strategic

acquisitions have played a

key role in expanding our

national footprint, sustainable

growth depends on getting the

fundamentals right.

The diversity of our operations

across the South Island is a

core strength, underpinned

by multiple revenue streams

spanning waste management

and industrial services.

This year, we prioritised

productivity gains, unlocking

operational synergies and

making smarter use of our

assets. For example, Civic

Waste began to deliver on a

major new Waikato contract

by redeploying a specialist

vehicle from the South Island,

enabling service delivery ahead

of new fleet investment.

These kinds of efficiencies are

improving performance across

our network and enhancing our

competitiveness in the market.

As we grow, our success will rely

on maintaining a disciplined

focus on our core business,

making it stronger, more

efficient and better positioned

to support long-term expansion.

As a company deeply connected to the environment,

sustainability is not a bolt-on, it’s an essential part of how we

operate and grow. This year, we partnered with environmental

specialists to develop an integrated sustainability plan that

will guide our transition to lower emissions and better resource

use. This includes building out supporting policies, setting clear

KPIs, and streamlining our carbon auditing processes to ensure

transparency and accountability.

To reduce emissions and improve operational efficiency

we implemented Teletrac Navman tracking technology

across our fleet. This gives us real-time visibility over vehicle

movements, helping us cut emissions, optimise logistics and

support safer, more efficient driving behaviour.

We are also transitioning our fleet to more sustainable vehicles.

Hybrid Toyota RAV4s have been introduced into our sales fleet,

and Civic Waste has added a Polestar 2 electric vehicle, marking

a step forward on our journey toward a zero-emissions future.

Strengthening

our core while

enabling growth

Embedding

environmental

leadership

Annual Report 20251734569127802We7'r r69c
Making waste work for communities means more than

recycling, it’s about being there after the flood, during the

festival and every day in between, delivering safe, reliable

services that people can count on.

Our focus remains clear—to look after our people, lead with

integrity, grow responsibly and build a sustainable business

that supports our communities and protects the environment

for future generations.

Thank you to all the staff at WasteCo for your commitment

to delivering cleaner environments.

David Peterson

CEO

Our focus

Annual Report 20251834569127802We7'r r69c
Opportunities and trends for growth

in waste management

Urbanisation and infrastructure investment

Circular economy and sustainability demands

Technology and efficiency

Sector consolidation and national service demand

Climate adaption and resilience

1

2

3

4

5

Continued urban expansion, especially in regional hubs, will drive higher

demand for construction and demolition waste services. As councils and

developers increase investment in housing and transport, waste services will

need to scale to support delivery.

Businesses and government are under growing pressure to improve

environmental performance. This has accelerated interest in diversion from

landfill, resource recovery and integrated waste solutions—areas where

WasteCo is actively investing and expanding capabilities.

The sector is undergoing a quiet transformation through digitisation,

automation and data-led service delivery. Companies that invest in smart

routing, predictive maintenance and customer-facing platforms will unlock

productivity gains and competitive advantages.

As large enterprises and government bodies seek fewer suppliers with broader

national reach, consolidation is accelerating. WasteCo’s strategic expansion

positions us to win larger contracts and deliver consistent service across

multiple regions.

Natural disasters and climate-related events are increasing in frequency

and impact. The waste sector plays a critical role in emergency response

and recovery—a growing area of demand where agility matters.

Despite short-term constraints, several structural trends signal

long-term opportunity and growth potential

Annual Report 20251934569127802We7'r r69c
Making waste work

for communities

At WasteCo, we’re more than just a waste services provider

—we’re an active part of the communities we serve, committed to making

a positive impact through environmental leadership, local partnerships

and supporting regional events

WasteCo is committed to creating positive

impact in the communities we serve. This

year, we continued our proud partnership

with the Canterbury Charity Hospital Trust,

a volunteer-run facility providing free healthcare

to individuals who fall outside public healthcare

eligibility and cannot afford private treatment.

By providing complimentary waste management

services, including handling both general and

medical waste, we help reduce operational

It was great to be part of the Electric Avenue

Music Festival, Australasia’s biggest party.

With more than 70,000 attendees across two

days and a visitor spend of nearly $10.5 million,

the event was a major boost for Christchurch.

We played our part by managing waste and

diverting as much as possible from landfill.

costs for this vital communityresource. This

support enables the hospital to redirect funds

towards patient care and essential services like

colorectal cancer screening for under–60s.

Our partnership reflects WasteCo’s values

as a national leader with strong local roots,

investing not only in innovative waste solutions

but also in community-driven initiatives that

make a real difference in people’s lives.

Supporting healthcare

access at Canterbury

Charity Hospital

Supporting

Electric Avenue 2025

Annual Report 20252034569127802We7'r r69c
We were on the ground at the CORDE

City2Surf event, providing waste sorting

services and successfully recycling all waste

to divert as much rubbish as possible from

landfill. It was another step towards making

the event more sustainable.

We continued to work with Antarctica

New Zealand, managing frozen waste generated

on the ice. From sterilising food waste to deep-

burying treated human waste, we’re committed

to keeping one of the world’s most pristine

environments clean for future generations.

We loved supporting the Goldfields Cavalcade in Twizel, providing Portaloos,

managing septic services and ensuring participants had safe, clean facilities

throughout the 1200km journey. A huge thanks to Donny Lewis and the Central

Otago team for making it all happen seamlessly.

CORDE City2Surf

A cleaner Antarctica

On the ground at the Goldfields Cavalcade

We were proud to support the grand

opening of Mitre 10 MEGA Brougham Street,

providing waste services in the lead-up to

the event. Our team helped keep the site

clean and launch-ready, demonstrating

our commitment to supporting local

businesses and community success.

The Mitre 10 MEGA

grand opening

Annual Report 20252134569127802We7'r r69c
To improve fleet efficiency and sustainability,

we installed Teletrac Navman tracking across

our vehicle network. This technology gives

us real-time visibility over fleet movements,

helping reduce emissions, optimise resources

and improve driver performance.

Investing in smarter

fleet management

In partnership with the Clutha District Council, we rolled out

new sideloader trucks in Balclutha. These trucks reduce

manual handling, improve efficiency and cut emissions—

showcasing how local innovation is helping deliver smarter,

more sustainable services.

Local innovation in action:

new trucks in Balclutha

We introduced hybrid vehicles, including

Toyota RAV4 hybrids, into our sales fleet to

lower emissions and improve fuel efficiency.

WasteCo has also added a Polestar 2

electric vehicle to its fleet, moving closer

to its zero-emission goals.

We are also working with Green Halo

to understand our base line position on

carbon emissions.

Investing in a greener fleet

Annual Report 20252234569127802We7'r r69c
We are a proud to support our local roots by

sponsoring the Crusaders. This partnership

is part of our commitment to sustainability

and community, and we’re excited to help

the team stay focused on their game while

managing waste sustainably at every

home match.

Supporting local roots:

sponsoring the Crusaders

As a Toitū Diamond-Certified waste solutions provider, we’re committed

to reducing landfill waste through advanced sorting facilities and

environmentally responsible processes.

Toitū Enviromark is a New Zealand-based environmental certification

programme designed to help organisations manage, reduce and offset

their environmental impacts. It provides the framework and tools

for businesses to measure, manage and mitigate their carbon footprint

and other environmental impacts. To gain this certification an organisation

must have a robust Environmental Management System to manage

environmental impacts.

Embracing

Toitū Enviromark certification:

a pathway to a sustainable future

Annual Report 20252334569127802We7'r r69c
Roger is an experienced executive, director

and chairman of public and private companies.

He had an executive career in logistics and

transportation and was a key executive in the

listing of a New Zealand transport company on

the NASDAQ, and organising significant offshore

financing for transport assets.

Roger became WasteCo’s Chairman last

December. He is currently also the Chairman

of PrimePort, Timaru. Roger is an independent

director of NZX-listed Me Today and of a number

of private companies.

Following his executive career, he completed

a Master of Philosophy degree at Cambridge

University, in the UK, researching the use of

economic tools to improve environmental

outcomes and the key attributes of successful

spinouts. He also holds a B.Com from Auckland

University and an MBA from Massey University.

Simon brings more than 25 years of experience

in business and property investment, combined

with an 18-year legal career in major New Zealand

law firms.

As principal of Empire Capital, Simon has

spearheaded transformative projects, including

acquisitions across marine; residential, industrial

and commercial property; and technology sectors.

Notable achievements include the acquisition of

three of Auckland’s privately-owned marinas and

associated waterfront land holdings and growing

them into thriving enterprises.

Lesser known is his investment in technological

infrastructure, reflecting his strategic vision and

entrepreneurial leadership. His proven expertise,

experience and forward-thinking leadership will be

valuable as WasteCo continues on its aggressive

growth trajectory.

ChairNon-Independent Director

WasteCo Board of Directors

Roger GowerSimon Herbert

Annual Report 20252434569127802We7'r r69c
Sean has more than 30 years’ experience in the

corporate sector as a corporate lawyer and a

market participant. He has a particular focus on

the capital markets and securities laws in New

Zealand. This includes regulatory compliance,

initial public offerings, compliance listings,

reverse listings, takeovers, fundraising and

offerings of various types of securities in New

Zealand.

Sean is a Chartered Member of the Institute of

Directors (CMinstD) and holds a Bachelor of Arts

and a Bachelor of Laws (Hons) from Auckland

University. Sean is a director of a number of private

and listed companies.

Shane has extensive experience in financial

markets, having worked in London and

New Zealand for more than 30 years.

He was previously a member of the Financial

Market Authority’s Code Committee for Financial

Advisers for seven years. Shane became a

shareholder and a director of WasteCo Holdings

NZ in December 2020 (prior to the reverse listing)

and served as Chair from December 2022 to

December 2024.

Non-Independent DirectorDirector

Sean JoyceShane Edmond

Annual Report 20252534569127802We7'r r69c
James is one of WasteCo’s founders.

Before launching WasteCo with Carl Storm,

James gained 18 years of cost and management

accounting experience in banking, foreign

exchange, broadcasting, manufacturing

and pharmaceuticals.

James and Carl are no longer working in the

business, but James remains on the Board.

Rodney is a qualified Chartered Accountant

with over 30 years’ experience. He has a strong

financial background and commenced his career

at KPMG Auckland in the financial accounting

and insolvency areas.

After a solid grounding in CA practice,

he then began his commercial journey in the

manufacturing sector, with various senior

finance roles in multinational printing groups

Blue Star Print and PMP Print, including

experience in managing business acquisitions

and startups. More recently he has moved into

the private sector with a CFO role in the Hospitality

industry for 5 years and is currently CFO of

the Empire Capital Group.

He brings significant commercial business

experience, strategic thinking, and broad financial

analysis and interpretation skills to the Board.

Non-Independent DirectorNon-Independent Director

James RedmayneRodney Malam

Annual Report 20252634569127802We7'r r69c
The full content of the company’s Governance Code and related polices and charters can be

found on the company’s website (‘website’).

This statement is a summary of the corporate governance arrangements approved and observed

by the Board as at 31 March 2025. The corporate governance arrangements are based on the

principles set out in the NZX Corporate Governance Code (‘NZX Code’). This statement has been

approved by the Board.

The Board has documented a Code of Ethics, which can be found on the website. The Code of

Ethics details the ethical standards to which the directors and employees of the Company and its

subsidiaries (Group) are expected to adhere. The Code of Ethics includes the items listed under

Recommendation 1.1 of the NZX Code.

The objective of the Board is to enhance shareholder value by directing the company in

accordance with sound governance principles. The Board assumes the following primary

responsibilities:

A formal Governance Code, which can be found on the website, has been adopted by the Board

and further outlines roles and responsibilities of the board, and distinguishes and discloses the

respective roles and responsibilities of the Board and management.

The Company regularly evaluates the performance of the directors, Board and Board committees

• formulation and approval of the strategic direction, objectives and goals of the Company;

• monitoring the financial performance of the Company, including approval of the

Company’s financial statements;

• ensuring that adequate internal control systems and procedures exist and that

compliance with these systems and procedures is maintained;

• review of performance and remuneration of directors and executive officers; and

• establishment and maintenance of appropriate ethical standards for the Company

to operate by.

The Board is committed to achieving best practice corporate governance

and the highest standards of ethical behaviour. The governance principles

adopted by the Board are designed to achieve these goals.

for the year ended 31 March 2025

Code of ethics

Roles of the Board

Corporate Governance Statement

Annual Report 20252734569127802We7'r r69c
internally. In addition, the Company continues to assess the size, diversity and skills of the Board.

Directors also receive appropriate training to remain current on how to best perform their duties

as directors of the Company.

The Company enters into written agreements with newly appointed directors establishing the

terms of their appointment.

In accordance with the Company’s constitution and the NZX Listing Rules, the Board

will comprise not less than three directors. The Board will be comprised of persons with

complementary skills appropriate to the Company’s objectives and strategies. The Board must

include not less than two persons who are deemed to be independent. A profile for each director is

set out on page 23 of this Annual Report and on the website.

Independence is assessed in accordance with the NZX Listing Rules, the factors listed under

Recommendation 2.4 of the NZX Code, and up to date information about a director. The Board

also has regard to the purpose of the composition requirements under the NZX Listing Rules.

WasteCo’s Board currently comprises five directors as follows:

Rodney Malam was also appointed as a Non-Independent Alternate Director in December 2024.

He is an alternate for Sean Joyce and Simon Herbert and is authorised to act in their place if his

appointer is absent.

As outlined above, Roger Gower and Shane Edmond are considered independent directors by the

Board, in accordance with the NZX Listing Rules, as of 31 March 2025.

This determination is based on the fact that Mr. Gower and Mr. Edmond are not employees of the

Group and do not have any ‘Disqualifying Relationship’ as defined in the NZX Listing Rules.

Additionally, after careful consideration, the Board has found no other factors, including those

referenced in Table 2.4 of the NZX Code, that would affect the independence status of Mr. Gower,

or Mr. Edmond.

Board composition

Roger Gower (Chair)Independent Director

Shane EdmondIndependent Director

Sean JoyceNon-independent Director

Simon HerbertNon-independent Director

James RedmayneNon-independent Director

Annual Report 20252834569127802We7'r r69c
The following individuals are considered non-independent directors:

Note that while Sean Joyce and Rodney Malam are appointed to the Board in their capacity

as representatives of substantial product holder, Empire Waste Technology Limited, they do

not hold a personal relevant interest in those shares. Simon Herbert is the sole shareholder of the

ultimate holding company of Empire Waste Technology Limited, Empire Holdings Trustee Limited.

Additionally, James Redmayne held an executive role within the Company during the financial

year ending 31 March 2025.

The Chair is an independent director, and the Chair and the CEO of the Company

are different people.

• Sean Joyce—has a Disqualifying Relationship as he was appointed to the Board

by a substantial product holder of the Company, Empire Waste Technology Limited.

• Simon Herbert—has a Disqualifying Relationship as he was appointed to the Board

by a substantial product holder of the Company, Empire Waste Technology Limited.

• James Redmayne—is a substantial product holder of the Company as a joint trustee

of a family trust.

• Rodney Malam (alternate for Sean Joyce and Simon Herbert)—has a Disqualifying

Relationship as he was appointed to the Board by a substantial product holder of the

Company, Empire Waste Technology Limited.

• James Redmayne resigned from his executive role effective 30 June 2024.

• Carl Storm resigned from his executive role on 5 July 2024 and later stepped down from his

director role on 16 August 2024.

• Angus Cooper resigned from the Board on 31 October 2024.

Resignations & role changes

The Board considers that, although it does not have a majority of independent Board members,

it has the right balance for the current size and structure of the Company. The Board will continue

to reassess this to ensure that the balance of Board members remains appropriate for the

Company’s needs.

Board meetings are held on a monthly basis and are attended by key management personnel

as required. Additional meetings are held as and when required. Each Board meeting involves

discussions and review of health and safety, finance, market information, strategy and other

operational matters.

Board meetings

Annual Report 20252934569127802We7'r r69c
The following table shows director attendance at Board meetings and Board committee meetings

for the FY25 financial year:

Board memberBoard Meetings attended

Roger Gower8

Shane Edmond9

James Redmayne 9

Angus Cooper6

Carl Storm4

Simon Herbert2

Sean Joyce2

The Company’s Governance Code sets out the nomination and appointment procedures for

directors. When a vacancy arises, the Board will identify candidates with a mix of diversity,

capabilities and perspectives considered necessary for the Board to carry out its responsibilities

effectively in accordance with its nomination and appointment procedure. A director appointed

by the Board must stand for election at the next Annual Meeting. A director may not hold office for

longer than three years or past the third annual meeting following that director’s appointment.

Retiring directors are eligible for re-election.

The Board has established an Audit, Finance and Risk Committee and a Remuneration,

Nomination and Health & Safety Committee.

Criteria for Board membership

Board committees

The Audit, Finance and Risk Committee operates under a Charter approved by the Board and is

accountable to the Board for:

Audit, Finance and Risk Committee

• the business relationship with, and the independence of, external auditors;

• the reliability and appropriateness of the disclosure of the financial statements and

external financial communication; and

Annual Report 20253034569127802We7'r r69c
• the maintenance of an effective business risk management framework including

compliance and internal controls.

Part of the Audit, Finance and Risk Committee’s role is to oversee financial reporting to ensure it

is balanced, clear and objective.

The current members of the Audit, Finance and Risk Committee are Shane Edmond (Chair),

Roger Gower and James Redmayne, all of whom are non-executive directors and being a majority

of independent directors. Shane Edmond is both an independent director and has an adequate

financial background, determined in accordance with section 3.2.1 of the NZX’s Governance

Guidance Note (January 2025). Shane Edmond is an independent chair of the Audit, Finance and

Risk Committee and is not Chair of the Board. Employees only attend the Audit, Finance and Risk

Committee meetings at the invitation of the committee.

The Audit, Finance and Risk Committee Charter can be found on the website.

The Remuneration, Nominations and Health & Safety Committee operates under a Charter

approved by the Board and is accountable to the Board for:

The current members of the Remuneration, Nominations and Health & Safety Committee are

Roger Gower and Shane Edmond, who are both independent directors. Management only attends

Remuneration, Nominations and Health & Safety Committee meetings at the invitation of the

committee. The remuneration paid to the directors during the financial year ended 31 March 2025

is set out on page 101 of this Annual Report.

WasteCo has a remuneration policy for the remuneration of executives and directors,

contained in the Company’s Governance Code. The Board promotes the alignment of the

interests of the directors, the CEO and management with the long-term interests of shareholders.

The remuneration received by directors in FY25 is disclosed on page 101 of this Annual Report.

The remuneration arrangements for the CEO are disclosed on page 108 of this Annual Report.

This includes a base salary and a short term incentive but no long term incentives.

The Remuneration, Nomination and Health Committee Charter can be found on the website.

Remuneration, Nomination and Health & Safety Committee

• the appointment, remuneration and evaluation of the CEO and succession planning

in relation to them;

• the remuneration of the leadership team;

• reviewing risks and compliance with statutory and regulatory requirements relative to

human resources;

• reviewing health and safety policies to ensure the Company is providing a safe working

environment for all employees and contractors; and

• recommending to the Board, candidates to be appointed as a director.

Annual Report 20253134569127802We7'r r69c
The Board has adopted a set of protocols to be followed in the event of a control transaction

(as defined in the NZX Code) being made. In the event of a control transaction, a control

transaction committee of independent directors would be formed and would have responsibility

for managing the control transaction in accordance with the Board protocols and applicable laws,

including the New Zealand Takeovers Code.

The Company does not currently have any other standing Board committees. The Board

has considered whether any other Board committees are required and has determined they

are not required.

Other Committees

The Company has a detailed Share Trading Policy which applies to all directors and employees,

and their associated persons, and can be found on the website. The procedures outlined in

this policy must be followed by all directors and any employees to obtain consent to trade in

the Company’s shares. Under the policy, trading restrictions apply during the following specific

blackout periods:

The Company has in place procedures designed to ensure compliance with the NZX Listing Rules

such that all investors have equal and timely access to material information concerning the

Company, including its financial situation, performance, ownership and governance.

Announcements are factual and presented in a clear and balanced way. Significant market

announcements, including the announcements of the half-year and full-year results and the

financial statements for those periods are reviewed by the Board prior to release.

The Group’s NZX Market Disclosure Policy has been put in place to ensure that the Company

complies with its continuous disclosure obligations at all times and can be found on the website.

Outside the black-out periods specified above, any trading is subject to the notification and

consent requirements outlined in the policy.

Trading in Shares

Continuous disclosure

• two weeks before 30 September until 48 hours after the half-year results are

released to NZX;

• two weeks before 31 March until 48 hours after the full-year results are released

to NZX; and

• 30 days prior to release of an offer document (such as a product disclosure statement)

for a general public offer of the same class of shares.

Annual Report 20253234569127802We7'r r69c
The Board ensures that the Group effectively manages health and safety. Providing leadership

and securing and allocating resources, as well as ensuring the Company has the appropriate

team, systems and equipment to manage the risks related to its work activities, are important

aspects of the Board’s responsibility to health and safety management. The Group has a

health and safety incident reporting system by which it reports all incidents to the Board for its

information, review and assurance on a monthly basis.

The Board recognises the wide-ranging benefits that diversity brings to an organisation.

The Company endeavours to incorporate diversity to ensure a balance of skills and perspectives

are available to benefit our shareholders. The Company’s Diversity Policy can be found

on the website.

WasteCo Group’s diversity focuses on gender, age, ethnicity, sexual orientation,

inclusion and flexibility. The activity we undertake across these areas of focus is aligned

to the following principles:

As at 31 March 2025, the gender balance of the Company’s directors (excluding alternates)

and officers were as follows:

Health & Safety

Diversity

• increasing the diversity of our workforce at senior levels;

• creating a flexible and inclusive work environment that values difference and enhances

business outcomes;

• harnessing diversity of thought and capitalising on individual differences;

• leadership behaviours that reflect our belief in the value of inclusion and diversity; and

• retaining and attracting a talented workforce through increasing the diversity of the

candidate pool and maintaining a recruitment strategy that is attractive to all candidates.

20252024

FEMALEMALEFEMALEMALE

Directors—5—5

Officers (exluding directors)—2—2

Total—7—7

Annual Report 20253334569127802We7'r r69c
As the opportunity arises to expand the Board, the Company will look to diversify in terms of both

gender and skills.

The waste industry has historically had a larger percentage of male employees. WasteCo has

taken active steps to increase the percentage representation of female employees through equal

employment opportunity initiatives and policies, assessments of gender pay gap, employee

wellbeing initiatives and a focus on an inclusive family-oriented work culture.

The Board is responsible for ensuring that material business and financial risks are identified,

and that appropriate controls and procedures are in place to effectively manage those risks. The

Audit, Finance and Risk Committee has overall responsibility for ensuring that the Company’s

risk management framework is appropriate and that risks are identified, considered and

managed. Risk management is a standing item on the agenda for Audit, Finance and Risk

Committee meetings. During the year ended 31 March 2025 the Group implemented a number of

risk management initiatives. Health and safety continues to be a key area of focus and external

reviews were conducted on insurance and information technology risk.

The Board has established a framework for the Group’s relationship with its external auditors,

which ensures that external audit independence is maintained. The External Audit Policy is

set out in the Company’s Governance Code, available on the website. Oversight of the Group’s

external audit arrangements is the responsibility of the Audit, Finance and Risk Committee.

The External Audit Policy covers:

The Company does not have an internal audit function, however it has internal processes and

processes that are considered to be appropriate for the size, structure and complexity of the

Group. As set out in the Company’s Governance Code, the Audit, Finance and Risk Committee is

responsible for regularly reviewing the Company’s internal controls and systems, and regularly

reporting to the Board on the Company’s internal control processes.

The external auditor attends the Company’s annual meeting each year to answer questions from

shareholders in relation to the audit.

Risks

Auditor

External auditor

Internal audit

• communication between the Audit, Finance and Risk Committee and the

external auditors;

• maintaining independence of the external auditors; and

• the process for reporting on non-audit work.

Annual Report 20253434569127802We7'r r69c
The Company has a dedicated page on its website where investors and stakeholders can

access financial and operational information and key corporate governance information about

the Company.

Shareholders can raise queries via the contact information on the website or at the Company’s

Annual Meeting of shareholders. Shareholders can elect to receive communications

electronically.

As required by the NZX Listing Rules, the Company seeks shareholder approval for major

decisions. In December 2024, the Company sought shareholder approval under the NZX Listing

Rules and the Takeovers Code for the issue and conversion of convertible notes.

The Company seeks to offer new equity pro rata to existing shareholders. In December 2024,

the Company announced a Share Purchase Plan, where new equity was offered to existing

shareholders, enabling shareholders that participated to maintain at least pro rata holdings,

if they wished.

As set out in the Company’s Governance Code, the Board endeavours to release all notices of

meeting at least 20 business days prior to the date of the meeting, where practical.

During the year ended 31 March 2025, the Company has followed the NZX Code (31 January 2025)

in all material aspects, with the following exceptions:

Shareholder rights & relations

NZX Corporate Governance Code (31 January 2025)

ReferenceRecommendationAlternative Governance Practice

& Reason for the Practice

Recommendation 2.8A majority of the board should be

independent directors.

James Redmayne, Sean Joyce, Simon

Herbert and Rodney Malam (alternate for

Sean Joyce and Simon Herbert) are not

classified as independent directors due to

their status as either substantial product

holders of the Company, or having been

appointed to the Board by a substantial

product holder of the Company.

While the Board does not currently have

a majority of independent directors, it

believes that the existing composition

provides an appropriate balance given the

Company’s current size and structure.

The Board remains committed to ongoing

reassessment of its structure to ensure

that the composition continues to align

with the Company’s strategic needs and

governance requirements.

Annual Report 20253534569127802We7'r r69c
Recommendation 4.4An issuer should provide non-financial

disclosure at least annually, including

considering environmental, social

sustainability and governance factors

and practices. It should explain

how operational or non-financial

targets are measured. Non-financial

reporting should be informative,

include forward looking assessments,

and align with key strategies and

metrics monitored by the board.

WasteCo has not yet provided

comprehensive reporting on environmental,

economic, and social sustainability factors.

Moving forward, the Board, in collaboration

with the appropriate committees, will

continue to identify relevant measures for

these key areas. Efforts are underway to

develop and implement systems that will

effectively capture, refine, and structure

this information to support future reporting

and transparency in these domains.

Recommendation 6.1An issuer should have a risk

management framework for its

business and the issuer’s board

should receive and review regular

reports. An issuer should report the

material risks facing the business and

how these are being managed.

Risk Management Implementation—FY25

Throughout FY25, the Board has

remained committed to implementing

and refining the Group’s risk management

plan, ensuring it effectively addresses

the material risks impacting business

operations. This approach follows the

reverse takeover transaction completed in

December 2022, providing a framework for

managing evolving challenges

and opportunities.

The risk management plan has been

designed with a specific focus on strategic,

operational, and project-related risks,

ensuring comprehensive oversight and

mitigation efforts. In particular, the

following key areas have been a priority:

→Health & Safety: Strengthening

workplace safety protocols and

compliance measures.

→Information Technology & Systems:

Enhancing cybersecurity, data

management, and digital infrastructure

to mitigate technology-related risks.

→Financial Risk Management:

Implementing robust financial controls

to safeguard stability and improve

operational resilience.

By prioritising these critical areas,

the Board aims to ensure long-term

sustainability, operational efficiency, and

proactive risk mitigation across the Group.

The alternative governance practices described in the table above have been approved

by the Board.

Annual Report 20253634569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Revenue5

56,40948,233

Other income632199

Expenses

Labour related expenses7.1

(24,598)(21,624)

Collection, recycling and waste disposal expenses(10,798)(8,988)

Fleet operating expenses(9,988)(6,876)

Depreciation and amortisation expenses7(8,169)(6,192)

Property expenses(1,012)(730)

Other expenses(5,680)(6,710)

Loss from operations(3,515)(2,788)

Finance costs7.2(5,114)(3,078)

Restructuring costs7.3(1,755) —

Acquisition costs7.4(605)(639)

Gain on bargain purchase—762

Loss before income tax(10,989)(5,743)

Income tax benefit91,1351,608

Loss for the year(9,854)(4,135)

Other comprehensive income

Other comprehensive income for the year

— —

Total comprehensive loss for the year(9,854)(4,135)

Loss per share

Basic and diluted loss per share (NZ$)10

(0.011)(0.005)

Consolidated Statement of Profit or Loss

and Other Comprehensive Income

for the year ended 31 March 2025

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

Annual Report 20253734569127802We7'r r69c
NoteShare

capital

NZ$000

Convertible

notes

reserve

NZ$000

Share based

payments

reserve

NZ$000

Retained

earnings

NZ$000

Total

equity


NZ$000

Balance at 1 April 2024

19,931343564(4,451)16,387

Loss for the year

———(9,854)(9,854)

Other comprehensive

income net of income tax

—————

Total comprehensive loss

———(9,854)(9,854)

Transaction with owners in their capacity as owners

Shares issued during

the year

19

5,000———5,000

Less: share issue costs19

(298)———(298)

Equity component

recognised in convertible

notes reserve

18.4

—4,270——4,720

Less: transaction

costs allocated to the

equity component of

convertible costs

18.4

—(148)——(148)

Share options issued20, 21

——144—144

Share options forfeited20, 21

——(297)94(203)

Balance at 31 March 2025

24,6334,465411(14,211)15,298

Consolidated Statement of Changes in Equity

for the year ended 31 March 2025

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

Annual Report 20253834569127802We7'r r69c
NoteShare

capital

NZ$000

Convertible

notes

reserve

NZ$000

Share based

payments

reserve

NZ$000

Retained

earnings

NZ$000

Total

equity


NZ$000

Balance at 1 April 2023

9,871—304(316)9,859

Loss for the year

———(4 ,135)(4 ,135)

Other comprehensive

income net of income tax

—————

Total comprehensive loss

———(4,135)(4,135)

Transaction with owners in their capacity as owners

Shares issued during

the year

19

10,527———10,527

Less: share issue costs19

(507)———(507)

Equity component

recognised in convertible

notes reserve

18.4

—343——343

Share options issued20, 21

——321—321

Share options forfeited20, 21

——(4 6)—(4 6)

Share options exercised20, 21

40—(15)—25

Balance at 31 March 2024

19,931343564(4,451)16,387

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

Annual Report 20253934569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

ASSETS

Current assets

Cash at bank25.1

5,8541,751

Trade receivables and other current assets118,6787,62 2

Inventories1272273

Income tax receivable—26

14,6049,672

Assets classified as held for sale13199—

Total current assets14,8039,672

Non-current assets

Property, plant and equipment14

41,39441,279

Right-of-use assets15.114,62010,545

Intangible assets169,3196,163

Total non-current assets65,33357,987

Total assets80,13667,659

Consolidated Statement of Financial Position

as at 31 March 2025

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

Annual Report 20254034569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

LIABILITIES

Current liabilities

Trade payable and other current liabilities17

7,76 65,859

Lease liabilities15.22.2761,162

Borrowings188,65210,640

Income tax payable142—

Total current liabilities18,83617,661

Non-current assets

Lease liabilities15.2

13,70410,422

Borrowings1832,29823,189

Total non-current liabilities46,00233,611

Total liabilities64,83851,272

Net assets15,29816,387

EQUITY

Share capital19

24,63319,931

Convertible notes reserve18.44,465343

Share based payments reserve20411564

Retained earnings(14,211)(4 ,4 51)

Total equity15,29816,387

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

These consolidated financial statements were approved by the Board on 29 May 2025.

Signed on behalf of the Board by:

Roger Gower

Director

Shane Edmond

Director

Annual Report 20254134569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Cash flows from operating activities

Receipts from customers

5 7, 8 7 946,022

Government grants received215

Payments to suppliers and employees(53,447)(4 4 ,913)

Interest received14—

Income tax (paid)/refunded2173

Net cash from operating activities25.24,4691,197

Cash flows from investing activities

Payments for property, plant and equipment14

(1,038)(3,560)

Receipts from sale of property, plant and equipment531299

Payments for intangible assets16(12)(35)

Acquisition of business24(5,581)(13,458)

Acquisition costs7.4(393)—

Contribution to acquisition expenses675—

Net cash used in investing activities(6,418)(16,754)

Consolidated Statement of Cash Flows

for the year ended 31 March 2025

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

Annual Report 20254234569127802We7'r r69c
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.


Note2025

NZ$000

2024

NZ$000

Cash flows from financing activities

Proceeds from issue of share capital19

5,0008,347

Payments for share issue costs19(298)(507)

Proceeds from borrowings25.332,13218,858

Principal repayment of borrowings25.3(36,488)(8,202)

Interest paid on borrowings25.3(3,160)(2,264)

Proceeds from convertible notes18.415,000—

Payments for convertible note issue costs18.4(510)—

Interest paid on convertible notes18.4(547)—

Principal repayment of lease liabilities25.3(1,700)(1,323)

Interest paid on lease liabilities25.3(1,037)(799)

Other interest paid—(15)

Net cash from financing activities8,39214,095

Net increase in cash and cash equivalents6,443(1,462)

Cash and cash equivalents at the beginning of the year(589)873

Cash and cash equivalents at the end of the year25.15,854(589)

Annual Report 20254334569127802We7'r r69c
Notes to the Consolidated

Financial Statements

for the year ended 31 March 2025

Material accounting policies

2.1 Statement of compliance and reporting framework

2.2 Basis of preparation

General information

WasteCo Group Limited (‘WasteCo’ or ‘the Company’) and its subsidiaries (together ‘the Group’)

are limited liability companies, incorporated under the Companies Act 1993 and domiciled

in New Zealand.

The Group provides solutions in the collection of waste and recycling, sweeping services and

industrial cleaning services. WasteCo is the holding company for the Group. Details of subsidiary

companies and their principal activities are set out in note 22.

The address of the Company’s registered office is 421 Blenheim Road, Christchurch.

The following are the material accounting policies adopted by the Group in the preparation and

presentation of the consolidated financial statements. There have been no changes in the material

accounting policies since the previous year end unless otherwise stated.

The consolidated financial statements have been prepared in accordance with Generally Accepted

Accounting Practice in New Zealand (‘NZ GAAP’). The Group is a for-profit entity for the purposes

of complying with NZ GAAP. The consolidated financial statements comply with New Zealand

equivalents to IFRS Accounting Standards (‘NZ IFRS’) and other applicable New Zealand Financial

Reporting Standards as appropriate for for-profit entities.

The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. The

Company is listed on the NZX Main Board (‘NZX’). These consolidated financial statements have been

prepared in accordance with the requirements of the Financial Markets Conduct Act 2013 and the

NZX Main Board Listing Rules.

The consolidated financial statements have been prepared on a historical cost basis apart from those

items measured at fair value as described below. Historical cost is generally based on the fair value of

the consideration given in exchange for goods and services.

1

2

Annual Report 20254434569127802We7'r r69c
The consolidated financial statements are presented in New Zealand dollars which is the

Group’s functional and presentation currency, rounded to the nearest thousand dollars unless

otherwise stated.

2.3 Principles of consolidation

2.4 Revenue recognition

The consolidated financial statements incorporate the financial statements of the Company and

entities controlled by the Company. Control is achieved when the Company:

The Group derives revenue from the following major sources:

The Company reassesses whether or not it controls an investee if facts and circumstances indicate

that there are changes to one or more of the three elements of control listed above.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their

accounting policies in line with the Group's accounting policies.

All intragroup assets, liabilities, equity, income, expenses, and cash flows relating to transactions

between members of the Group are eliminated in full on consolidation.

Acquisitions of businesses are accounted for using the acquisition method. The consideration

transferred in a business combination is measured at fair value. Acquisition related costs are

generally recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised

at their fair value at the acquisition date, except that deferred tax assets or liabilities, and liabilities

related to employee benefit arrangements, are recognised and measured in accordance with NZ IAS

12 Income Taxes and NZ IAS 19 Employee Benefits respectively.

Goodwill is measured as the excess of the sum of the consideration transferred over the net of the

acquisition-date amounts of the identifiable assets acquired, and the liabilities assumed.

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

• Waste collection and recycling services;

• Sweeping services; and

• Industrial cleaning services.

Business combinations

Annual Report 20254534569127802We7'r r69c
The Group provides waste collection and recycling services via front load bins, hook bins, skip bins

and wheelie bins to both commercial and private customers. Recycling services include a dedicated

sorting facility with a focus on diversion from landfill.

Revenue from collection and disposal of waste is recognised when the performance obligation to the

customer has been fulfilled, which is generally when the waste has been collected from the customer.

Costs to dispose of the waste are generally incurred at, or close to, the time of collection.

Revenue from the sale of recycled materials is recognised when control of the goods has transferred,

being when the goods have been shipped to the customer’s specific location or when the customer

collects the goods.

The Group provides sweeping services for Councils and commercial customers. Contracts for the

provision of sweeping services to Councils are usually for ongoing sweeping over multi-year periods.

Revenue from sweeping services provided to Councils are recognised over time as the services are

performed. Revenue from sweeping services provided to commercial customers is recognised when

the performance obligation to the customer has been fulfilled, which is generally when the sweeping

service has been provided.

The Group provides industrial scrubbing, high pressure water blasting, urgent spill response services,

port-a-loo hire and collection, and septic tank cleaning. Revenue from industrial cleaning services is

recognised when the performance obligation to the customer has been performed, which is generally

when the cleaning services have been performed, or in the case of port-a-loos, when the regular

cleaning and waste collection has been completed.

Revenue is measured based on the consideration to which the Group expects to be entitled in a

contract with a customer and excludes amounts collected on behalf of third parties, such as goods

and service tax and customs duties.

Waste collection and recycling services

Sweeping services

Industrial cleaning services

2.5 Segment reporting

2.6 Borrowing costs

Operating segments are reported in a manner consistent with the internal reporting provided to

the chief operating decision maker. The chief operating decision maker, who is responsible for

allocating resources and assessing performance of the operating segments, has been identified as

the Board of Directors.

Borrowing costs include interest expense calculated using the effective interest method and finance

charges in respect of lease arrangements. Borrowing costs are expensed as incurred.

Annual Report 20254634569127802We7'r r69c
2.7 Income Tax

2.9 Inventories

2.8 Goods and services tax

Income tax expense comprises both current and deferred tax.

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are

determined on a first-in-first-out basis. Net realisable value represents the estimated selling price for

inventories less estimated costs of completion and costs necessary to make the sale.

Revenue, expenses, assets, liabilities, cash receipts and cash payments are recognised net of the

amount of goods and services tax (GST) except:

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit

before tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because

of items of income or expense that are taxable or deductible in other years and items that are never

taxable or deductible.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and

liabilities in the financial statements and the corresponding tax bases used in the computation of

taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of

unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it

is probable that taxable profits will be available against which those deductible temporary differences

can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference

arises from the initial recognition (other than in a business combination) of assets and liabilities

in a transaction that affects neither the taxable profit nor the accounting profit, unless the initial

recognition gives rise to equal amounts of taxable and deductible temporary differences.

Current tax

Deferred tax

• where the amount of GST incurred is not recovered from the Inland Revenue Department, it

is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or


• for receivables and payables, which are recognised inclusive of GST.

Annual Report 20254734569127802We7'r r69c
2.10 Assets held for sale

2.11 Property, plant and equipment

Non-current assets classified as held for sale are measured at the lower of carrying amount and fair

value less costs to sell. 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. This condition is

regarded as met only when the sale is highly probable and the asset is available for immediate sale in

its present condition. The Group must be committed to the sale which should be expected to qualify

for recognition as a completed sale within one year from the date of classification.

Each class of property, plant and equipment is measured at historical cost less accumulated

depreciation and accumulated impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values, over their

estimated useful lives. The estimated useful lives, residual values and depreciation method are

reviewed at the end of each reporting period.

The following depreciation rates are applied:

An item of property, plant and equipment is derecognised upon disposal or when no future economic

benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s

carrying amount is greater than its estimated recoverable amount.

Class of assetDepreciation ratesDepreciation basis

Plant and equipment

4%—20%

Straight line

16%—67%

Diminishing value

Vehicles

7%—20%

Straight line

13%—30%

Diminishing value

Office equipment

16%—50%

Diminishing value

Leasehold improvements

10%

Diminishing value

Annual Report 20254834569127802We7'r r69c
2.12 Intangible assets

2.13 Leases

Acquired intangible assets with finite useful lives are carried at cost less accumulated amortisation

and accumulated impairment losses. Amortisation is recognised so as to write off the cost of the

assets over their estimated useful lives. The estimated useful lives and amortisation method are

reviewed at the end of each reporting period. Intangible assets with indefinite useful lives that are

acquired separately are carried at cost less accumulated impairment losses.

The following amortisation rates are applied:

The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease

arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease

term of 12 months or less) and lease of low value assets.

The lease liability is initially measured at the present value of the future lease payments, discounted

by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its

incremental borrowing rate. The lease liability is subsequently measured at amortised cost using the

using the effective interest method. It is remeasured when there is a change in future lease payments

arising from a change in rate or if the Group changes its assessment of whether it will exercise

a purchase, extension of termination option, with a corresponding adjustment made to the carrying

value of the right-of-use asset.

The right-of-use assets comprise the initial measurement of the corresponding lease liability.

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and the useful life of the

underlying asset.

Goodwill is measured at cost less accumulated impairment losses. Goodwill is reviewed at each

reporting date to determine whether there is any objective evidence of impairment and is tested

annually for impairment.

Class of assetDepreciation ratesDepreciation basis

Customer contracts

26.67%

Straight line

Computer software

50%

Diminishing value

Brand names

The brand names acquired on the acquisition

of Civic Waste Limited have been fully impaired as

the Group has decided to not continue with these

brand names.

Annual Report 20254934569127802We7'r r69c
2.14 Financial instruments

2.15 Share capital

2.16 Share based payment transactions

The Group’s financial assets at amortised cost include cash at bank and trade and other receivables.

Financial liabilities (including trade payables and other current liabilities, borrowings and lease

liabilities) are measured at amortised cost using the effective interest method.

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new

shares are shown in equity as a deduction, net of tax, from the proceeds.

The fair value of share options issued to directors and employees is determined at the grant date and

is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of the

share options that will eventually vest, with a corresponding increase in equity.

The Group has issued convertible notes which are compound financial instruments.

The component parts of convertible loan notes issued by the Group are classified separately as

financial liabilities and equity in accordance with the substance of the contractual arrangements and

the definitions of a financial liability and an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market

interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an

amortised cost basis using the effective interest method until extinguished upon conversion or at the

instrument’s maturity date.

The conversion option classified as equity is determined by deducting the amount of the liability

component from the fair value of the compound instrument as a whole. This is recognised and

included in equity and is not subsequently remeasured. In addition, the conversion option classified

as equity will remain in equity until the conversion option is exercised, in which case, the balance

recognised in equity will be transferred to share capital. Where the conversion option remains

unexercised at the maturity date of the convertible loan note, the balance recognised in equity will be

transferred to retained earnings.

Transaction costs that relate to the issue of the convertible loan notes are allocated to the liability and

equity components in proportion to the allocation of the gross proceeds. Transaction costs relating

to the equity component are recognised directly in equity. Transaction costs relating to the liability

component are included in the carrying amount of the liability component and are amortised over the

lives of the convertible loan notes using the effective interest method.

Convertible notes

Annual Report 20255034569127802We7'r r69c
At the end of each reporting period, the Group revises its estimate of the number of share options

expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or

loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment

to the share-based payments reserve.

Application of new and revised New Zealand

IFRS Accounting Standards (NZ IFRSs)

3

3.1 New and amended standards and interpretations

All new and amended standards were implemented and the impact deemed not to be material.

The Group has not early adopted any standards, interpretations or amendments that have been

issued but are not yet effective. Early adoption of these new standards, interpretations

or amendments would not have had a material impact on the financial result or financial position

of the Group.

The Group has not yet assessed the impact of NZ IFRS 18 Presentation and Disclosure in Financial

Statements which becomes mandatory for reporting periods beginning on or after 1 January 2027.

It is expected that the standard will impact the presentation of the financial statements.

Key accounting estimates and judgements

In the application of the Group’s accounting policies, which are described in note 2, the directors

of the Group are required to make judgements, estimates and assumptions about the carrying

amounts of assets and liabilities that are not readily apparent from other sources. The estimates and

associated assumptions are based on historical experience and other factors that are considered to

be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods. Below are the key accounting judgements.

4

4.1 Going concern

The consolidated financial statements have been prepared on a going concern basis, which assumes

that the Group has the intention and ability to continue its operations for the foreseeable future.

The Group incurred an after-tax loss of $9.9 million in the year to 31 March 2025 (2024: $4.1 million

loss). The Group’s net cashflows from operating activities was $4.5 million (2024: $1.2 million).

Annual Report 20255134569127802We7'r r69c
At the reporting date the Group had cash of $5.9 million (2024: $1.8 million), negative working capital

of $4.0 million (2024: $8.0 million negative) and net assets of $15.3 million (2024: $16.4 million).

As at 31 March 2025, the Group had borrowings of $41 million (2024: $33.8 million) of which $8.7

million were current (2024: $10.6 million) and $32.3 million were non-current (2024: $23.2 million).

As described in Note 16, the Directors have considered forecast financial information and associated

assumptions in their assessment of whether there is potential impairment of intangible assets,

including goodwill. There are inherent uncertainties in forward-looking assumptions which can

be different, sometimes materially, to actual outturns. However, the Directors are of the view that

the inherent uncertainties are not material in the context of the assessment of going concern.

Additionally, the Group maintains a positive liquidity position, with enough cash on hand and access

to undrawn balance facilities at year end to provide further comfort in this respect. The Group is

currently in the process of negotiating updated financial covenants with our lender.

The Directors have, at the time of approving the consolidated financial statements, a reasonable

expectation that the Group has adequate resources to continue in operational existence for the

foreseeable future. They have therefore continued to adopt the going concern basis of accounting in

preparing the consolidated financial statements.

The Directors have formed this expectation having regards to the Group’s current financial budget

and forecasts, the available headroom under existing funding facilities, and the Group’s ability to

comply with the renegotiated Kiwibank borrowing covenants (which have currently been agreed and

are subject to final approvals).

4.2 Determining fair values on acquisition

4.3 Impairment of goodwill

On 30 November 2024 the Group acquired Civic Waste Limited (note 24). At acquisition date the

identifiable assets acquired, and the liabilities assumed, are recognised at their fair value. Judgement

is required in determining fair value of the assets acquired. The fair value of assets acquired is

determined by reference to market prices for similar items. Independent valuers were engaged to

determine fair value.

Cash-generating units to which goodwill has been allocated are tested for impairment annually,

or more frequently when there is an indication that the unit may be impaired. The Board has

undertaken value in use impairment testing and reviewed sensitivity analysis relating to the carrying

value of the goodwill. Judgement is required in determining whether there has been an impairment

in goodwill (note 16.1).

Annual Report 20255234569127802We7'r r69c
4.7 Share options

4.4 Impairment of non-financial assets

4.5 Recognition of deferred tax asset

4.6 Determining the lease term and incremental borrowing rate

The directors used judgement in determining the fair value of the share options. Share options

were independently valued using the Black-Scholes model to estimate fair value at grant date. The

expected volatility in the measure of fair value has been based on the observed volatility levels of

movements in WasteCo’s share price from 5 December 2022 up to 11 March 2025 and for overseas

comparable companies, as a proxy of the Company's future volatility. The Company did not have three

years’ trading history at the valuation date to provide a three-year historical volatility to support the

share option valuation (refer note 21).

All assets are assessed for impairment at each reporting date by evaluating whether indicators

of impairment exist in relation to the continued use of the asset by the Group. Impairment triggers

include technology changes, adverse changes in the economic or political environment and

future product expectations. If an indicator of impairment exists, the recoverable amount of the

asset is determined.

The future benefit of tax losses is recognised as a deferred tax asset to the extent that it is probable

that taxable profits will be available against which those tax losses can be utilised. Judgement is

required in determining the probability and timing of future profits.

When determining the lease term, judgement is required in determining whether it is reasonably

certain that an extension option will be exercised. The Group considers all relevant factors that create

an economic incentive for it to exercise the extension. After the commencement date, the Group

reassesses the lease term if there is a significant event or change in circumstances that is within its

control and affects its ability to exercise or not to exercise the option to extend. The Group included

the extension period as part of the lease term for leases of premises.

Lease liabilities are measured by discounting the lease payments using the interest rate implicit in

the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used,

being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an

asset of similar value to the right of use asset in a similar economic environment with similar terms,

security, and conditions. To determine the incremental borrowing rate, the Group uses recent third-

party financing received as a starting point, adjusted to reflect any changes in financing conditions

since the third-party financing was received.

Annual Report 20255334569127802We7'r r69c
Revenue

Other income

5

6


2025

NZ$000

2024

NZ$000

Revenue from waste collection and recycling

32,03925,431

Revenue from sweeping services13,29911,027

Revenue from industrial cleaning services11,07111,775

56,40948,233


2025

NZ$000

2024

NZ$000

Insurance claims

16914

Contribution to acquisition costs75—

Rental income5534

Interest income1435

Miscellaneous other income816

32199

The details above disaggregate the Group's revenue from contracts with customers into primary

markets and major service lines. All revenue is generated in New Zealand.

Annual Report 20255434569127802We7'r r69c
Expenses

7


Note2025

NZ$000

2024

NZ$000

Expenses relating to short-term leases

(268)(222)

Net foreign currency (losses)/gains(8)(4)

Loss on disposal of property, plant and equipment(553)(199)

Depreciation and amortisation expenses

Depreciation of property, plant and equipment14

(4 ,4 23)(3,902)

Depreciation of right of use assets15.1(2,019)(1,550)

Amortisation of intangible assets16(1,727)( 74 0)

(8,169)(6,192)

Fees incurred for services provided by the auditor

Audit of financial statements

Audit of the financial statements

(207)(215)

For prior audit—paid to previous auditor—(79)

(207)(294)

Other services

Acquisition due digilence services

(62)—

Total other services(62)—

Total fees incurred for services provided by the auditor(269)(294)

The profit or loss for the year includes the following expenses:

Annual Report 20255534569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Salary and wages

(23,725)(20,668)

Temporary staff costs(306)(170)

Employer Kiwisaver contributions(639)(554)

Share based payments2072(232)

(24,598)(21,624)


2025

NZ$000

2024

NZ$000

Interest on asset finance borrowings

(2,497)(2,105)

Interest on lease liabilities(1,037)(799)

Interest on convertible notes(917)—

Brokerage fees(4 32)—

Interest on bank overdraft(161)(159)

Bank fees(69)—

Interest charged by suppliers—(13)

Use of money interest(1)(2)

(5,114)(3,078)

7.1 Labour related expenses

7.2 Finance costs

Annual Report 20255634569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Restructuring costs

(755)—

Write down of assets held for sale13(66)—

Loss on disposal of assets(556)—

Impairment of property plant & equipment14(378)—

(1,755)—


Note2025

NZ$000

2024

NZ$000

Acquisition costs

(393)(639)

Impairment of intangible assets16(212)—

(605)(639)

7.3 Restructuring costs

7.4 Acquisition costs

Annual Report 20255734569127802We7'r r69c
Segment information

8

The Group provides solutions in the collection of waste and recycling, sweeping services and

industrial cleaning services. All of these collection and disposal services are provided in New Zealand.

2025Waste

collection &

recycling


NZ$000

Sweeping

services


NZ$000

Industrial

cleaning


NZ$000

Corporate

/unallocated


NZ$000

Total


NZ$000

Total revenue

32,03913,29911,071—56,409

Operating EBITDA

6,9905,1262,551(10,027)4,640

Finance income

———1414

Finance costs

(161)(25)(172)(4 ,756)(5,114)

Depreciation &

amortisation

(1,509)(348)(1,169)(5,143)(8,169)

Restructuring costs

(90)(4 5)(800)(820)(1,755)

Acquisition expenses

———(605)(605)

Net profit/(loss)

before taxation

5,2304,708410(21,337)(10,989)

Income tax benefit

———1,1351,135

Net profit/(loss)

for the year

5,2304,708410(20,202)(9,854)

Annual Report 20255834569127802We7'r r69c
2024Waste

collection &

recycling


NZ$000

Sweeping

services


NZ$000

Industrial

cleaning


NZ$000

Corporate

/unallocated


NZ$000

Total


NZ$000

Total revenue

25,43111,02711,775—48,233

Operating EBITDA

5,4394,5292,897(9,496)3,369

Finance income

———3535

Finance costs

(27)——(3,051)(3,078)

Depreciation &

amortisation

(4 28)(80)(284)(5,400)(6,192)

Gain on bargain purchase

———762762

Acquisition expenses

———(639)(639)

Net profit/(loss)

before taxation

4,9844,4492,613(17,7 8 9)(5,743)

Income tax benefit

———1,6081,608

Net profit/(loss)

for the year

4,9844,4492,613(16,181)(4,135)

The Group has identified its operating segments based on the internal reports reviewed and used by

the Chief Operating Decision Maker (‘CODM’), being the Board of Directors, in assessing the Group’s

performance and in determining the allocation of resources.

The operating segments are identified by the CODM based upon the nature of services provided.

The Group has provided only a measure of profit and loss for each reportable segment as the

CODM is not provided with total assets and liabilities for each segment when assessing the Group’s

performance and allocating resources.

For the year ended 31 March 2025 there was two customers who individually accounted for more

than 10% of the Group's total sales. Sales to these customers were $8.6 million and $5.8 million

(31 March 2024: one customer with sales of $6.3 million). These customers purchased sweeping,

industrial & waste services.

8.1 Information about major customers

Annual Report 20255934569127802We7'r r69c
Taxation

9

The analysis of income tax expense is as follows:

The charge for the year can be reconciled to the loss before tax as follows:

9.1 Income tax benefit

9.2 Reconciliation of income tax benefit


2025

NZ$000

2024

NZ$000

Current income tax

——

Deferred tax(1,135)(1,608)

Total income tax benefit recognised in the current year(1,135)(1,608)


2025

NZ$000

2024

NZ$000

Loss before income tax

(10,989)(5,743)

Prima facie tax at 28% (2024: 28%)(3,077)(1,608)

Non-assessable income—(213)

Non-deductible expenses46988

Tax losses not recognised1,473125

Income tax benefit(1,135)(1,608)

Annual Report 20256034569127802We7'r r69c
2025Opening

balance


NZ$000

Recognised

in loss

NZ$000

Acquisition

of business

NZ$000

Closing

balance


NZ$000

Deferred tax assets(liabilities)

in relation to:

Provisions

172—19

Accrued expenses

404(66)188526

Customer contracts asset

(1,319)479(715)(1,555)

Property, plant & equipment

(3,302)(258)(608)(4,168)

Leases

29190—381

Tax losses offset against

deferred tax liability

3,909888—4,797

—1,135(1,135)—

2024Opening

balance


NZ$000

Recognised

in loss

NZ$000

Acquisition

of business

NZ$000

Closing

balance


NZ$000

Deferred tax assets(liabilities)

in relation to:

Provisions

21(4)—17

Accrued expenses

177227—404

Customer contracts asset

—203(1,522)(1,319)

Property, plant & equipment

(1,978)(1,324)—(3,302)

Leases

22764—291

Share options

85(85)——

Tax losses offset against

deferred tax liability

1,3822,527—3,909

(86)1,608(1,522)—

9.3 Deferred tax

Annual Report 20256134569127802We7'r r69c
9.4 Imputation credits


2025

NZ$000

2024

NZ$000

Imputation credits available for use in subsequent periods

153235


2025

NZ$

2024

NZ$

Basic and diluted (loss) per share

(0.011)(0.005)

2025 2024

Loss from continuing operations

NZ$000

(9,854)(4 ,135)

Weighted average number of ordinary shares used in the

calculation of basic and diluted loss per share

’000

913,172800,946

Earnings/(loss) per share

10

The loss and weighted average number of ordinary shares used in the calculation of earnings

per share are as follows:

The 29.6 million share options on issue (refer note 21) and the $18 million convertible notes on issue

(refer note 18.4) at the reporting date were not considered to be dilutive due to the Group’s net loss

for the year (2024: 20.8 million share options and $3 million convertible notes on issue were not

considered to be dilutive).

Annual Report 20256234569127802We7'r r69c
Trade receivables and other current assets

11


2025

NZ$000

2024

NZ$000

Trade receivables from contracts with customers

7,7 1 96,760

Other receivables2238

Prepayments937824

8,6787,622


2025

NZ$000

2024

NZ$000

Reconcilliation for allowance for expected credit losses

Balance at the beginning of the year

6234

Impairment losses recognised on receivables6756

Amounts written off as uncollectable(61)(28)

Balance at the end of the year6862

The standard credit terms on sales are 30 days. No interest is charged on outstanding trade

receivables. Due to the short-term nature of current receivables, their carrying amount is considered

to be the same as their fair value.

The Group has assessed expected loss rates for trade receivables based on its judgement of the

impact of current economic conditions and its experiences with customers to date. There has been no

significant change in the estimation techniques used for assessing the expected loss rates during the

current reporting period.

11.1 Allowance for expected credit loss

Annual Report 20256334569127802We7'r r69c
2025Current


NZ$000

Less than

30 days

past due

NZ$000

30 to

60 days

past due

NZ$000

More than

60 days

past due


NZ$000

Total


NZ$000

Trade receivables

5,7361,0365544617,7 8 7

Loss allowance

(11)(3)(9)(4 5)(68)

7,719

2024Current


NZ$000

Less than

30 days

past due

NZ$000

30 to

60 days

past due

NZ$000

More than

60 days

past due


NZ$000

Total


NZ$000

Trade receivables

3,6491,6031,0025066,760

Loss allowance

(4)(1)(1)(56)(62)

6,698

Inventories

12


2025

NZ$000

2024

NZ$000

Finished goods

72273

72273

$200,467 of inventory was included as an expense in the net loss for the year (2024: $182,793).

The Group’s receivables aging is as follows:

Annual Report 20256434569127802We7'r r69c
Assets held for sale

13


2025

NZ$000

2024

NZ$000

Property, plant & equipment

199—

Total assets held for sale199—


Note2025

NZ$000

2024

NZ$000

Balance at 1 April

Reclassified from property, plant & equipment:14

— cost

294—

— accumulated depreciation(29)—

Write down of assets held for sale(66)—

Balance at 31 March199—

Assets held for sale relate to a mowing business that was acquired as part of the acquisition of the

Cleanways in 2024. The Group decided to sell this mowing business as it is not part of the Group’s core

strategy. The sale of the business went unconditional on 23 May 2025 with settlement to take place

on 1 June 2025. The assets held for sale have been written down to their recoverable value.

This business was part of the Industrial cleaning segment.

Annual Report 20256534569127802We7'r r69c
Property, plant and equipment

14

Plant and

equipment

NZ$000

Vehicles

NZ$000

Office

equipment

NZ$000

Leasehold

improvements

NZ$000

Assets under

construction

NZ$000

Total


NZ$000

Cost

At 1 April 2023

17,41920,707361177—38,664

Additions

1,6551,2272141403243,560

Transfers

21——114(135)—

Business acquisiton

78310,74 510——11,538

Disposals

(4 49)(4 60)———(909)

At 31 March 2024

19,42932,21958543118952,853

Additions

390276180108841,038

Transfers

—189——(189)—

Business acquisition

(Note 24)

9294,2152041—5,205

Reclassified to assets

held for sale (Note 13)

(5)(289)———(294)

Disposals

(193)(1,231)(20)——(1,444)

At 31 March 2025

20,55035,3797655808457,358

Annual Report 20256634569127802We7'r r69c
Plant and

equipment

NZ$000

Vehicles

NZ$000

Office

equipment

NZ$000

Leasehold

improvements

NZ$000

Assets under

construction

NZ$000

Total


NZ$000

Accumulated depreciation and impairments

At 1 April 2023

(3,548)(4,005)(217)(41)—(7,811)

Depreciation expense

(1,642)(2,039)(179)(4 2)—(3,902)

Disposals

10732———139

At 31 March 2024

(5,083)(6,012)(396)(83)—(11,574)

Depreciation expense

(1,920)(2,317)(143)(4 3)—(4 ,4 23)

Reclassified to assets

held for sale (Note 13)

227———29

Disposals

7529116——382

Impairments

(378)————(378)

At 31 March 2025

(7,304)(8,011)(523)(126)—(15,964)

Carrying amount

At 31 March 2025

13,24627,3682424548441,394

At 31 March 2024

14,34626,20718934818941,279

At 1 April 2023

13,87116,702144136—30,853

Annual Report 20256734569127802We7'r r69c
15.1 Right-of-use asset

Equipment

NZ$000

Vehicles

NZ$000

Premises

NZ$000

Total

NZ$000

Cost

At 1 April 2023

—1,5266,3027,828

Additions

—2,5001,3763,876

Lease modifications

—(322)72(250)

Business acquisition

——2,0892,089

At 31 March 2024

—3,7049,83913,543

Additions

200901—1,101

Lease modifications

—120123243

Disposals

—(618)—(618)

Business acquisition (Note 24)

—3,1921,5594,751

At 31 March 2025

2007,29911,52119,020

Accumulated depreciation

At 1 April 2023

—(483)(1,482)(1,965)

Depreciation expense

—( 74 1)(809)(1,550)

Lease modifications

—517—517

At 31 March 2024

—(707)(2,291)(2,998)

Depreciation expense

(30)(1,009)(980)(2,019)

Disposals

—617—617

At 31 March 2025

(30)(1,099)(3,271)(4,400)

Leases

15

The Group leases vehicles, and premises for waste sorting, vehicle storage and administration.

Annual Report 20256834569127802We7'r r69c
Equipment

NZ$000

Vehicles

NZ$000

Premises

NZ$000

Total

NZ$000

Carrying amount

At 31 March 2025

1706,2008,25014,620

At 31 March 2024

—2,9977,54810,545

At 1 April 2023

—1,0434,8205,863

The average lease term is 8.06 years (2024: 7.77 years). The average IBR rate is 8.07% (2024: 8.81%).


2025

NZ$000

2024

NZ$000

Maturity analysis—contractual undiscounted cash flows

Up to one year

3,4792,021

One to two years3,3541,901

Two to five years8,5695,615

More than five years5,2286,349

Total undisclosed lease liabilities at reporting date20,63015,886

Less: future finance charges(4 ,650)(4 ,4 52)

Total discounted lease liabilities at reporting date15,98011,584

Lease liabilities included in the Consolidated Statement of Financial Position at reporting date

Current

2,2761,162

Non-current13,70410,422

15,98011,584

15.2 Lease liabilities

Annual Report 20256934569127802We7'r r69c
Intangible assets

16

Goodwill


NZ$000

Customer

contracts

NZ$000

Brand names

NZ$000

Computer

software

NZ$000

Total


NZ$000

Cost

At 1 April 2023

137——96233

Additions

———3535

Business acquisition

1,2765,435——6,711

At 31 March 2024

1,4135,435—1316,979

Additions

———1212

Business acquisition

(Note 24)

2,2932,554212475,106

Disposals

———(112)(112)

At 31 March 2025

3,7067,9892127811,985

Accumulated amortisation/impairment

At 1 April 2023

———(76)(76)

Amortisation expense

—(725)—(15)( 74 0)

At 31 March 2024

—(725)—(91)(816)

Amortisation expense

—(1,711)—(16)(1,727)

Impairment expense

——(212)—(212)

Disposals

———8989

At 31 March 2025

—(2,436)(212)(18)(2,666)

Carrying amount

At 31 March 2025

3,7065,553—609,319

At 31 March 2024

1,4134,710—406,163

At 1 April 2023

137——20157

Annual Report 20257034569127802We7'r r69c
The brand names acquired on the acquisition of Civic Waste Limited have been fully impaired as the

Group has decided to not continue with these brand names.

The carrying amount of goodwill has been allocated to CGUs as follows:

The Directors have assessed the goodwill for impairment at the reporting date and have concluded

that no impairment has occurred. The following provides a summary of the analysis performed.

The recoverable amount of each CGU was determined on a ‘value in use’ basis. Value in use was

determined by discounting the future cash flows generated from the continuing use of each CGU

based on the key assumptions set out below. Cash flows were projected on actual operating results,

the 12-month budget reviewed and approved by the Board of Directors, and multi-year forecasts.

The value in use calculation for the ‘Industrial services’ CGU used cash flow projections based on

the 2026 budget and financial projections covering a five-year period (2024: five-year period).

The calculation used a weighted average cost of capital rate of 9.5% per annum (2024: 14.83% per

annum). A terminal value of the CGU was then determined after the forecast period and applied to the

calculated value in use.

Solely for the purposes of this assessment, anticipated annual revenue growth of the CGU has been

projected at 37% in 2026 which includes 12 months of Civic revenue’s compared to 4 months in FY25,

with ongoing 5% per annum increase in free cash flows which is reflective of the model being used in

the current year (2024: anticipated revenue growth of 10% in 2025 with no further growth assumed

for the remaining forecast years as a conservative estimate. Gross margin percentages projected to

remain consistent and other operating costs to increase by 6% per annum).

16.1 Impairment testing for cash-generating units (‘CGUs’) containing goodwill


2025

NZ$000

2024

NZ$000

Industrial services

1,5501,276

Waste collection1,330137

Sweeping826—

Balance at reporting date3,7061,413

Industrial services

Annual Report 20257134569127802We7'r r69c
The value in use calculation for the ‘Waste collection’ CGU used cash flow projections based on

the 2026 budget and financial projections covering a five-year period (2024: five-year period).

The calculation used a weighted average cost of capital rate of 9.5% per annum (2024: 14.83% per

annum). A terminal value of the CGU was then determined after forecast period and applied to

the calculated value in use.

Solely for the purposes of this assessment, anticipated annual revenue growth of the CGU has been

projected at 31% in 2026 which includes 12 months of Civic revenue’s compared to 4 months in FY25

with ongoing 5% per annum growth in free cash flows which is reflective of the model being used in the

current year (2024: anticipated revenue growth of 20% in 2025 with no further growth assumed for the

remaining forecast years as a conservative estimate. Gross margin percentages projected to remain

consistent and other operating costs to increase by 6% per annum).

The following adjustment to the key assumptions would individually reduce the Waste Collection

services CGU’s recoverable value to the level of its carrying value:

The value in use calculation for the ‘Sweeping’ CGU used cash flow projections based on the 2026

budget and financial projections covering a five-year period. The calculation used a weighted average

cost of capital rate of 9.5% per annum. A terminal value of the CGU was then determined after forecast

period and applied to the calculated value in use.

Solely for the purposes of this assessment, anticipated annual revenue growth of the CGU has been

projected at 25% in 2026 which includes 12 months of Civic revenue’s compared to 4 months in FY25

with ongoing 5% per annum growth in free cash flows which is reflective of the model being used in the

current year.

The following adjustment to the key assumptions would individually reduce the Sweeping services

CGU’s recoverable value to the level of its carrying value:

Waste collection

Sweeping

• an increase in the discount rate by 15.8 percentage points; and

• a reduction in free cash flow by 68%.

• an increase in the discount rate by 18.2 percentage points; and

• a reduction in free cashflow by 71%.

The following adjustment to the key assumptions would individually reduce the Industrial services

CGU’s recoverable value to the level of its carrying value:

• an increase in the discount rate by 1.9 percentage points;

• a reduction in the terminal growth rate by 2.6 percentage points; and

• a reduction in free cash flows by 21%.

Annual Report 20257234569127802We7'r r69c
Trade payables and other current liabilities

17


Note2025

NZ$000

2024

NZ$000

Trade payables

3,1312,812

Accrued expenses2,4831,959

Contingent consideration24880—

PAYE payable582511

GST payable512338

Revenue received in advance127183

Other payables5156

7,7665,859

The carrying amount of trade payables and other current liabilities are assumed to be the same as fair

value due to the short-term nature of these amounts.

Annual Report 20257334569127802We7'r r69c
Borrowings

18


Note2025

NZ$000

2024

NZ$000

Secured borrowings at amortised cost

Bank overdraft18.1

—2,340

Asset finance18.225,93028,177

Convertible notes18.410,581—

Unsecured borrowings at amortised cost

Convertible notes18.4

2,8392,657

Other loans18.51,600655

Total borrowings40,95033,829

Current8,65210,640

Non-current32,29823,189

40,95033,829


2025

NZ$000

2024

NZ$000

Balance at 1 April

2,340—

Net drawdown on overdraft facility—2,340

Repayment of overdraft(2,340)—

Balance at 31 March—2,340

All borrowings are denominated in NZD.

18.1 Bank overdraft

Annual Report 20257434569127802We7'r r69c
At 31 March 2025 the Group had a total available overdraft facility of $3 million (31 March 2024: $3

million). Interest is payable at a rate of 10.6% per annum (2024: 12.1%). The bank overdraft is secured

under the General Security Agreement detailed in note 18.2.

Asset finance is used to fund the purchase of assets and business acquisitions.

On 6 May 2024 WasteCo NZ Limited entered into a new funding arrangement with Kiwibank Limited

(‘Kiwibank’) replacing previous asset finance arrangements. The Kiwibank facilities comprise:

The weighted average interest rates on asset finance loans during the period was 8.65% (2024: 8.27%).

The facilities are secured by:


2025

NZ$000

2024

NZ$000

Balance at 1 April

28,17721,176

Proceeds from asset finance29,87514,433

Repayment of loans(32 ,122)( 7,4 3 2)

Balance at 31 March25,93028,177

18.2 Asset finance

• a $17 million Kiwi Asset Finance KiwiPlus facility with principal and interest payable over a

term of 48 months. Interest is charged at a rate calculated as Kiwibank’s cost of funds plus a

cost of funds margin of 2.80% per annum;

• a $15.45 million Kiwi Asset Finance KiwiPlus facility with interest only payable over an

initial term of 24 months. The term was subsequently extended to 30 May 2027. Interest is

charged at a rate calculated as Kiwibank’s cost of funds plus a cost of funds margin of 2.80%

per annum; and

• a $3 million Kiwibank Overdraft facility to fund working capital.

• a first ranking and exclusive General Security Agreement over WasteCo NZ Limited

and the entities within the Group, including WasteCo Group Limited;

• an unlimited cross guarantee between each Group entity; and

• a specific Security Agreement over each individual asset of Wasteco NZ Limited with

a value greater than $50,000.

Annual Report 20257534569127802We7'r r69c
At 31 March 2024 the Group borrowed from a range of lenders. Each finance drawdown was

secured by the respective assets acquired through the transaction and by guarantees from

James Redmayne and Carl Storm (refer note 26.5). The terms of the asset finance arrangements

were between 2 to 5 years.

The Group had the following financing facilities with Kiwibank Limited:

Asset finance facilities at 31 March 2024

Both facilities were secured by a first ranking General Security Agreement (GSA) and second ranking

financing agreement with Kiwi Asset Finance Limited. The GSA was secured by all present and after

acquired personal property, together with all proceeds arising from that property, including goods,

money, accounts receivable, chattel paper, intangibles, negotiable instruments, documents of title

and investment securities.

In the 3-month period to 30 June 2024, the Group breached its quarterly interest cover ratio and

leverage ratio covenants with Kiwibank. The covenant breaches occurred as a result of weaker

quarterly trading, with revenue down against budget, particularly from some of the Group’s larger

customers.

Following review, Kiwibank agreed to waive the covenant requirements through to 31 March 2025.

Instead, the Group agreed to provided regular reporting of performance against budget. All other

essential terms of the facilities remained unchanged.

The funding arrangements, including covenant requirements are currently being renegotiated.

• a $12.1 million KiwiPlus Facility dated 13 April 2022. The facility has a variable interest rate

which was 9.25% per annum at the reporting date. The Group had $10.5 million in borrowings

under this facility at the reporting date; and

• a $2.25 million fixed term Facility dated 27 September 2021 which is to be repaid over

5 years. The interest rate on this facility at the reporting date was 9.19% per annum.

The Group had $584,621 in borrowings under this facility at the reporting date.

18.3 Bank covenants

Annual Report 20257634569127802We7'r r69c

2025

NZ$000

2024

NZ$000

Balance at 1 April

2,657—

Value of convertible notes issued15,0003,000

Equity component recognised in convertible notes reserve(4 , 270)(343)

Interest expense917—

Interest paid(547)—

Transaction costs allocated to the debt component

of the convertible notes

(366)—

Amortisation of transaction costs29—

Balance at 31 March13,4202,657

Secured convertible notes (issued December 2024)10,581—

Unsecured convertible notes (issued March 2024)2,8392,657

13,4202,657

18.4 Convertible notes

On 19 December 2024 the Company issued $15 million convertible notes. The funds from the issue

of the notes were applied to the completion payment for the Civic Waste Limited acquisition (note

24) and provide working capital for the Group to fund further acquisitions and strengthen its balance

sheet. The notes have a five-year term, pay the holder interest of 6% per annum, and provide the holder

with the option to convert the notes into equity at $0.02 per share at any time during the term. The

notes are secured by a second ranking general security deed over the present and after acquired

property of the Company. The interest expense on the liability component of these convertible notes

is calculated by applying an effective annual interest rate of 14%.

On 27 March 2024 the Group issued $3 million unsecured convertible notes to two wholesale

investors. The notes mature on 15 October 2025. They offer the holders the right to redeem for cash

on the maturity date, or convert to fully paid ordinary shares at $0.05 each prior to maturity. The

notes pay the holders interest of 10% per annum, paid quarterly, up until the date of conversion or

redemption. The interest expense on the liability component of these convertible notes is calculated

by applying an effective annual interest rate of 18%.

Annual Report 20257734569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Balance at 1 April

655—

Proceeds from loans2,2561,425

Loans acquired on business acquisition242,596—

Overdraft acquired on business acquisition24458—

Repayment of loans(4 ,365)(770)

Balance at 31 March1,600655

18.5 Other loans

$702,000 of other loans fund insurance premiums and are secured against the funded policies.

The loans are repayable within eight months of the commencement of the relevant insurance policies.

Interest is fixed with a weighted average rate of 7.26% at the reporting date (2024: $655,000 with

a weighted average interest rate of 7.76%).

The $898,000 remaining balance of other loans is unsecured and is repayable over 3.5 years

to 31 March 2028. Variable interest is charged. The interest rate at the reporting date was 10.91%

(2024: nil).

Share capital

19


Note2025

NZ$000

2024

NZ$000

At 1 April

19,9319,871

Shares issued during the year5,0008,322

Share issue costs(298)(507)

Shares issued on acquisition of business—2,205

Share options exercised20, 21—40

At 31 March24,63319,931

Annual Report 20257834569127802We7'r r69c
The table below details the movement in ordinary shares issued by the Company.

On 23 December 2024 the Company issued 250,000,000 ordinary shares at $0.02 per share under a

share purchase plan to existing shareholders.

All ordinary shares on issue are fully paid, have equal voting rights, and share equally in dividends and

any surplus on winding up.


2025

’000

2024

’000

Ordinary shares as at 1 April

848,373688,000

Shares issued during the year250,000160,373

Ordinary shares as at 31 March1,098,373848,373

Share based payments reserve

20


Note2025

NZ$000

2024

NZ$000

Balance at 1 April

564304

Share options issued21144321

Share options forfeited21(297)(4 6)

Share options exercised21—(15)

Balance at 31 March411564

Share based payments are included in:

Directors’ remuneration

1243

Employees’ remuneration (reversal of expense)(72)232

(60)275

Annual Report 20257934569127802We7'r r69c
Share options

21

The Company has a share option scheme for directors and selected employees of the Company and

its subsidiaries to purchase ordinary shares in the Company.

Each share options converts into one ordinary share of the Company on exercise. No amounts are paid

or payable by the recipient on receipt of the option. The options carry no rights to dividends and no

voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

The options vest in 3 equal tranches: one third on the grant date, one third on the first anniversary

of the grant date and the final third on second anniversary of the grant date. Each tranche can be

exercised at any time within 3 years from the vesting date.

At 31 March 2025, 13.3 million of the share options granted had not yet vested to option holders

(31 March 2024: 9.6 million).

The weighted average contractual life of the share options outstanding at 31 March 2025 was

3.15 years (31 March 2024: 2.8 years).

20252024

Number

of options

Weighted average

exercise price

Number

of options

Weighted average

exercise price

Balance at 1 April20,800,000$0.05021,300,000$0.050

Granted during the year18,500,000$0.0236,000,000$0.050

Exercised during the year——(500,000)$0.050

Forfeited during the year(9,700,000)$0.050(6,000,000)$0.050

Balance at 31 March29,600,000$0.03220,800,000$0.050

Exercisable at 31 March16,266,667$0.04011,200,000$0.050

Annual Report 20258034569127802We7'r r69c

Vesting date Fair value per option

NZ$

Tranche 111 March 2025

0.0071

Tranche 211 March 20260.0082

Tranche 311 March 20270.0091

21.1 Fair value of share options granted in the year

The fair values of the share options granted during the year were:

Options were valued using the Black-Scholes option pricing model. The key inputs used in valuing the

options are detailed in the table below.

The expected volatility in the measurement of fair value at grant date has been based on the

volatility of the Company’s share price from 5 December 2022 up to 11 March 2025 and for overseas

comparable companies, as a proxy of the Company’s future volatility.

The Black-Scholes formula assumes that the options being valued can be sold on a secondary market.

The terms of the options forbid their trading. Accordingly, a 20% discount to the values derived from

the Black-Scholes formula was applied to reflect the restrictive terms.

Grant date11 March 2025

Options granted18,500,000

Grant date one month VWAP$0.0246

Exercise price$0.0233

Expected volatility0.4—0.5

Option life (from vesting date)36 months

Dividend yield0%

Average risk free interest rate3.77%—4.06%

Annual Report 20258134569127802We7'r r69c
Subsidiaries

Financial instruments

22

23

Ownership interest

held by Group

Name of subsidiaryPrincipal activity20252024

Civic Waste LimitedWaste collection, recycling & disposal

100%—

Safeco Training NZ LimitedSafety management training

100%100%

Sortco NZ LimitedWaste sorting and recycling

100%100%

WasteCo Finance NZ LimitedCredit card merchant account holder for group

100%100%

WasteCo Holdings NZ LimitedHolding company

100%100%

WasteCo NZ LimitedWaste collection, recycling & disposal

100%100%

WasteCo NZ (Southern) LimitedWaste collection, recycling & disposal

100%100%

WasteCo Port Services NZ LimitedIndustrial cleaning

100%100%

All subsidiaries are domiciled in New Zealand and have a balance date of 31 March.

23.1 Classes and categories of financial instruments

The Group has entered into a number of non-derivative financial instruments all of which are classified

as financial assets and liabilities at amortised cost. The carrying values of these items approximate

their fair value and represent the maximum exposures for each type of financial instrument. They are

listed as follows:

Annual Report 20258234569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Financial assets at amortised rate

Cash at bank

5,8541,751

Trade receivables and other current assets117,74 16,798

Total financial assets13,5958,549

Financial liabilities at amortised rate

Trade payables and other current liabilities17

6,5454,827

Borrowings—current188,65210,640

Borrowings—non-current1832,29823,189

Lease liabilities—current15.22,2761,162

Lease liabilities—non-current15.213,70410,422

Total financial liabilities63,47550,240

The Group does not have any derivative financial instruments (2024: nil).

23.2 Financial risk management objectives

23.3 Market risk

The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk

and currency risk), credit and liquidity risk. The Group’s overall risk management programme focuses

on the unpredictability of financial markets and seeks to minimise potential adverse effects on its

financial performance.

Risk management is carried out under policies approved by the Board of Directors.

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest

rates will affect the Group’s income or the value of its holdings of financial instruments. The objective

of market risk management is to manage and control the market risk exposures within acceptable

parameters, while optimising the return on risk.

The Group’s main market risk relates to interest rate risk. Interest rate risk is the risk that the fair

value of the financial instrument or cash flows associated with the instrument will fluctuate due to

changes in market interest rates.

Annual Report 20258334569127802We7'r r69c
The Group’s interest rate risk exposure primarily relates to its exposure to variable interest rates on

borrowings. The Group has managed this risk exposure through:

A 1% increase in the interest rates of variable rate borrowings, taking into account scheduled

repayments, would increase the annual interest expense on the borrowings from these facilities by

$97,674. A decrease in the variable interest rates of 1%, taking into account scheduled repayments,

would decrease the annual interest expense on the borrowings from these facilities by $96,701.

• refinancing through Kiwibank during the year after going to the market for the best

funding solutions. This delivered significant savings in interest costs and preferential

repayment terms;

• the issue of convertible notes which require no repayment until the end of the term of

the notes, and even then repayment is only required if the notes are not settled through

the issue of shares. This has enabled the Group to focus on the repayment of Kiwibank

borrowings. The convertible notes have a fixed interest rate payable that is significantly

lower than the bank borrowings interest rate; and

• a focus on debt repayment.

23.4 Credit risk

23.5 Liquidity risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial

instrument fails to meet its contractual obligations and arises from cash and cash equivalents, and

the Group’s receivables from customers. The Group’s maximum credit risk is represented by the

carrying value of these financial assets.

The credit risk associated with cash transactions and deposits is managed through the Group’s

policies that limit the use of counterparties to high credit quality financial institutions.

The Group minimises concentrations of credit risk in receivables by undertaking transactions with

a large number of customers. In addition, receivable balances are monitored on an ongoing basis

with the objective that the Group’s exposure to expected credit losses is minimised. The Group

considers information developed internally or obtained from external sources to determine whether

a debtor is unlikely to pay the balances due in full. The Group writes off a trade receivable when there

is information indicating that the debtor is in severe financial difficulty and there is no realistic

prospect of recovery.

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when

they fall due. The Group’s liquidity risk management includes maintaining sufficient cash reserves to

meet future commitments.

Annual Report 20258434569127802We7'r r69c
The following table provides a maturity analysis of the Group’s remaining contractual cash

flows relating to non-derivative financial liabilities. Contractual cash flows include contractual

undiscounted principal and interest payments.

The liquidity table assumes convertible noteholders request repayment of the notes at the end of

their respective terms and do not choose to convert the notes to shares.

Carrying

amount


NZ$000

Contractual

cash flows

NZ$000

Payable

0–6

months

NZ$000

Payable

6–12

months

NZ$000

Payable

1–2 years

NZ$000

Payable

2–5 years

NZ$000

Payable

5+ years


NZ$000

As at 31 March 2025

Trade payables

and other current

liabilities

7,76 67,76 67,76 6————

Borrowings

40,95055,9334,5686,78221,63022,953—

Lease liability

15,98020,6301 ,74 91,7303,3548,5695,228

64,69684,32914,0838,51224,98431,5225,228

As at 31 March 2024

Trade payables

and other current

liabilities

5,8595,8595,859————

Borrowings

33,82936,2685,5295,13111,81713,791—

Lease liability

11,58415,8861,0489731,9015,6156,349

51,27258,01312,4366,10413,71819,4066,349

23.6 Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going

concern while maximising the return to shareholders through the optimisation of debt and equity.

The capital structure of the Group consists of equity, comprising issued capital and retained earnings,

and debt. The Group reviews the capital structure on a regular basis including assessing equity

ratios and ensuring compliance with bank covenants, to ensure that entities in the Group are able to

continue as going concerns and to fund its acquisition strategy.

Annual Report 20258534569127802We7'r r69c
Acquisition of Civic Waste Limited

24

WasteCo entered into a sale and purchase agreement for the purchase of 100% of the shares of Civic

Waste Limited (‘CWL’) on 22 November 2024. The purchase was completed on 19 December 2024

with an effective date of 30 November 2024.

CWL is a leading North Island based waste management company providing collection of waste and

recycling services, sweeping services and industrial cleaning services. The acquisition expands

WasteCo’s geographic footprint and provides additional operational scale.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as

set out in the table below.

NZ$000

Net assets acquired at fair value:

Cash

(4 58)

Accounts receivable2,173

Inventory2

Other current assets157

Property, plant and equipment5,205

ROU asset4,751

Computer software47

Customer relationship asset2,554

Brand212

Accounts payable and accruals(1,844)

Income tax payable(149)

Term loans(2,596)

Lease liabilities(4 ,751)

Deferred tax liability(1,135)

Net assets acquired4,168

Goodwill2,293

6,461

Annual Report 20258634569127802We7'r r69c
The total purchase price for the acquisition was $9.5 million. $8.6 million of the purchase price was

paid in cash to the vendors and to the repayment of debt. In addition, contingent consideration

is payable to the vendors based upon CWL’s actual EBITDA results during the 12 months to 30

November 2025. Contingent consideration of $500,000 up to $1 million is payable if CWL achieves

EBITDA of $2.5 million to $3.0 million respectively. For EBITDA exceeding $3.0 million the contingent

consideration payable is equal to $1.0 million plus 20% of the amount of EBITDA exceeding $3.0

million. Management consider EBITDA of $3.0 million will be achieved. The fair value of the contingent

consideration is calculated as $880k, which is the $1 million forecast payment discounted to present

value using the CWL weighted average cost of capital of 13.6%.

The cash paid for the acquisition was funded by the issue of convertible notes (refer note 18.4) and the

issue of shares to existing shareholders under a share purchase plan (refer note 19).

CWL contributed $6.0 million and $0.2 million to the Group’s revenue and profit before tax for the

period between the date of acquisition and the reporting date. If CWL had been acquired on 1 April

2024 the Group estimates the new business would have contributed $20.9 million and $0.6 million to

the Group’s revenue and net profit before tax for the 2025 year.

The goodwill arising from the acquisition relates to expected synergies, and the capability and

expertise developed within the acquired business.

The fair value of acquired receivables is their gross contractual amount.

NZ$000

Satisfied by:

Cash

8,635

Contingent consideration880

Less: acquisition date bank overdraft(4 58)

Less: acquisition date loan(2,596)

Total consideration6,461

The fair value of assets and liabilities acquired has been determined by an independent valuer.

Annual Report 20258734569127802We7'r r69c
Notes to the cash flow statement

25


Note2025

NZ$000

2024

NZ$000

Cash at bank

5,8541,751

Bank overdraft18.1—(2,340)

5,854(589)

25.1 Cash and cash equivalents

Annual Report 20258834569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Net loss after taxation

(9,854)(4,135)

Adjustments for:

Depreciation of property, plant and equipment14

4,4233,902

Depreciation of right of use assets152,0191,550

Amortisation of intangible assets161,72774 0

Impairment of plant and equipment14378—

Impairment of intangible assets16212—

Loss on disposal of of property, plant and equipment553199

Share based payments20(60)275

Interest paid on borrowings3,1602,279

Interest paid on lease liabilities1,037799

Interest on convertible notes18.4917—

Amortisation of convertible note issue costs18.429—

Write down of assets held for sale1366—

Acquisition related costs includes in investing activities393—

Contribution towards acquisition costs6(75)—

Income tax benefit9(1,135)(1,608)

Gain on bargain purchase—(762)

Other non-cash adjustments—272

25.2 Reconciliation of profit or loss after taxation with cash flow from operating activities

Annual Report 20258934569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Movements in working capital

(Increase)/decrease in trade receivables

and other current assets

(1,056)(2,584)

(Increase)/decrease in inventory

201(4 3)

Increase/(decrease) in trade payables

and other current liabilities

1,907656

Increase/(decrease) in income tax payable

16874

Movement in working capital due to business acquisition

(541)(4 17)

Net cash received from operating activities

4,4691,197

Annual Report 20259034569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Borrowings

At 1 April

33,82921,176

Cash:

Proceeds from borrowings

32,13218,858

Principal repayment of borrowings(36,488)(8,202)

Interest paid on borrowings(3,160)(2,264)

Net repayment of bank overdraft(2,340)—

Net proceeds from bank overdraft—2,340

Proceeds from convertible notes15,000—

Convertible note issue costs paid(366)—

Interest paid on convertible notes(547)—

Non-cash:

Interest accrued on borrowings

3,1602,264

Equity component recognised in convertible notes reserve(4 , 270)(343)

Interest accrued on convertible notes917—

Amortisation of convertible note issue costs29—

Loan acquired on business acquisition242,596—

Overdraft acquired on business acquisition24458—

As 31 March40,95033,829

25.3 Reconciliation of liabilities arising from financing activities

Annual Report 20259134569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Lease liabilities

At 1 April

11,5846,675

Cash:

Principal repayments of lease liabilities

(1,700)(1,323)

Interest paid on lease liabilities(1,037)(799)

Non-cash:

Lease liabilities recognised

1,1013,876

Lease liabilities from business acquisitions4,7512,089

Interest on lease liabilities1,037799

Lease modifications243589

Lease disposals—(322)

As 31 March15,98011,584

Related parties

26

26.1 Directors

26.2 Key management personnel compensation

The directors of the Company during the year were Shane Edmond, Roger Gower, Simon Herbert

(appointed 19 December 2024), Sean Joyce (appointed 19 December 2024), Rodney Malam

(appointed 19 December 2024 as an alternate to Simon Herbert) James Redmayne, Angus Cooper

(resigned 31 October 2024), and Carl Storm (resigned 16 August 2024).

Key management personnel are the Directors, the Chief Executive Officer and members of the

executive leadership team (2024: key management personnel were the directors, including two

executive directors).

Key management personnel compensation paid to personnel not being directors is set out below.

Annual Report 20259234569127802We7'r r69c

Note2025

NZ$000

2024

NZ$000

Short term benefits—directors fees

236269

Share based payments—directors fees201243

Short-term benefits—employee benefits1,396527

Share based payments—employee benefits8046

Termination benefits80—

Short-term benefits—consulting services429—

2,233885

26.3 Empire Waste Technology Limited

26.4 Bastre Properties NZ Limited

26.5 Other transactions with related parties

Empire Waste Technology Limited (‘EWTL’) is the holder of the $15 million of convertible notes issued

by the Company on 19 December 2024 (refer note 18.4). Simon Herbert is a director of EWTL.

Simon Herbert, Sean Joyce and Rodney Malam (as an alternate to Simon Herbert) were nominated

to the WasteCo board by EWTL under the terms of the convertible notes agreement.

Bastre Properties NZ Limited (‘Bastre Properties’) owns premises that are leased by the Group.

The initial term of the lease is five years from November 2020 and the Group hold rights of renewal

for two further five-year terms. $127,664 was paid in rent to Bastre Properties in the reporting period

ended 31 March 2025 (2024: $130,095). As at 31 March 2025 the Group recognised $1,023,961 of

lease liabilities due to Bastre Properties (2024: $979,824). Subsequent to the reporting date the

Group renegotiated the terms of the lease with Bastre Properties (refer note 29).

44% of the share capital of Bastre Properties is owned by the Storm Commercial Trust, of which

Carl Storm and his wife Dawn are trustees, and 44% by the James & Sam Family Trust, of which

James Redmayne and his wife Samantha are trustees.

Carl Storm’s wife, Dawn Storm, received total remuneration of $83,345 as an employee of the Group

(2024: $67,511).

During 2024 James Redmayne’s wife, Samantha Redmayne, received remuneration of $70,836 as an

employee of the Group.

Annual Report 20259334569127802We7'r r69c
At 31 March 2024 selected asset finance loans were secured by personal guarantees from Carl Storm

and James Redmayne (note 18.2).

Contingencies

Commitments

Events subsequent to reporting date

27

28

29

There were no contingent liabilities at 31 March 2025 (2024: nil).

There were $388,000 of commitments for future capital expenditure at 31 March 2025

(2024: $570,000).

WasteCo is in discussions on a potential lease agreement for an industrial vacuum vehicle.

The obligation amount is still to be confirmed and is estimated at $850,000 (2024: nil).

On 19 May 2025 the Group entered into a variation of lease for the premises it leases from Bastre

Properties (refer note 26.4). Under the variation, the rights of renewal were amended to three rights

of renewal for three-year terms each. If all rights of renewal are exercised the final expiry date of the

lease will be 15 July 2034.

There have been no other events subsequent to the reporting date which would materially affect the

financial statements.

29.1 Variation to premises lease with Bastre Properties




Independent Auditor’s Report

To the Shareholders of WasteCo Group Limited

Opinion We have audited the consolidated financial statements of WasteCo Group Limited and its

subsidiaries (the ‘Group’), which comprise the consolidated statement of financial position as at 31

March 2025, and the consolidated statement of profit or loss and other comprehensive income,

statement of changes in equity and statement of cash flows for the year then ended, and notes to

the

consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements, on pages 36 to 93, present

fairly, in all material respects, the consolidated financial position of the Group as at 31 March 2025,

and its consolidated financial performance and cash flows for the year then ended in accordance

with New Zealand Equivalents to IFRS Accounting Standards (‘NZ IFRS’) as issued by the External

Reporting Board and IFRS Accounting Standards (‘IFRS’) as issu

ed by the International Accounting

Standards Board.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and

International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those

standards are further described in the

Auditor’s Responsibilities for the Audit of the Consolidated

Financial Statements section of our report.

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

for our opinion.


We are independent of the Company 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 and

the International Ethics Standards Board for Accountants’ International Code of Ethics for

Professional Accountants (including International Independence Standards), and we have fulfilled

our other ethical responsibilities in accordance with these requirements.

Our firm carries out other assignments for the Group in the area of acquisition due diligence

corporate finance services. These services have not impaired our independence as auditor of the

Company and Group. In addition to this, partners and employees of our firm deal with the Company

and its subsidiaries on normal terms within the ordinary course of trading activities of the business

of the Company and its subsidiaries.

The firm has no other relationship with, or interest in, the

Company or any of its subsidiaries.

Audit materiality



We consider materiality primarily in terms of the magnitude of misstatement in the financial

statements of the

Group that in our judgement would make it probable that the economic decisions

of a reasonably knowledgeable person would be changed or influenced (the ‘quantitative’

materiality). In addition, we also assess whether other matters that come to our attention dur

ing

the audit would in our judgement change or influence the decisions of such a person (the

‘qualitative’ materiality). We use materiality

both in planning the scope of our audit work and in

evaluating the results of our work.

We determined materiality for the Group financial statements as a whole to be $600,000.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance

in our audit of the consolidated financial statements of the current period. These matters were

addressed in the context of our audit of the consolidated fin

ancial statements as a whole, and in

forming our opinion thereon, and we do not provide a separate opinion on these matters.










Key audit matter How our audit addressed the key audit matter

Business Acquisitions

As disclosed in note 24, WasteCo Group Limited acquired the Civic

Waste Limited business in the current year. The Group recognised

goodwill amounting to $2.3m relating to the the acquisition.

The acquisition is significant and complex due to:

• The calculation of contingent consideration included in the

acquisition price;

• The determination of the date of acquisition;

• The acquisition resulting in intangible assets being

recognised; and

• The judgements and estimates involved in identifying and

determining the fair value of the assets acquired and

liabilities assumed.

Given the significance of the acquisition in the current year, this

has increased the level of audit effort required to recognise the

acquisition.


Our procedures included:

- Reviewing and challenging management expert’s

valuations of assets. This included challenging key

assumptions such as:

• Cash flow forecasts;

• Useful life of identified finite life intangibles;

and

• Discount and growth rates

- Obtaining and analysing

the sale and purchase agreement

relating to the acquisition to understand key terms and

conditions of the transactions;

- Assessing the mathematical accuracy of the purchase

price accounting calculation, including recalculating the

goodwill to be recognised on acquisition;

- Considering the completeness of the underlying assets

acquired including the identification of intangible assets;

- Assessing the competence, capabilities, objectivity and

expertise of management’s external valuation and

accounting expert and the appropriateness of their work

as audit evidence;

- Engaging our own internal valuation specialist to assist in

reviewing the valuation methodology, reviewing the

mathematical accuracy of the models and assessing the

reasonableness of the discount and growth rate s used;

and

- Evaluating the adequacy of disclosures relating to the

acquisition in the consolidated financial statements.

Goodwill Impairment Assessment

The Group has $3.7m (including $2.3m relating to the acquisition

above) of goodwill as at 31 March 2025, as detailed in note 16 of

the financial statements.

The carrying amount of goodwill is dependent on future cash flows

expected to be generated by the underlying businesses. T here is a

risk that if these cash flows are not achieved, the cash generating

unit s to which goodwill has been allocated, may be impaired.

The Group tests goodwill annually for impairment by determining

the recoverable amount of the cash generating unit. The

impairment assessment models prepared by the Group contain a

number of key assumptions. Changes in these assumptions may

lead to a change in the carrying amount of goodwill.

The key assumptions in the goodwill models are:

• Forecasted free cash flows;

• Pre tax discount rates; and

• Terminal growth rates

We have included the goodwill impairment assessment as a key

audit matter due to the significance of the balance to the

consolidated financial statements and the level of judgment

applied by the Group in determining the key assumptions used to

determine the recoverable amounts.


We considered whether the Group’s methodology for assessing

impairment is compliant with NZ IAS 36 Impairment of Assets.

We

have tested the appropriateness and suitability of the models and

reasonableness of the assumptions used.

Our procedures included:

- Agreeing a sample of cash flows to the Board approved

budgets and analysing whether they are reasonable and

supportable, given the expected future performance of

the cash generating unit, as well as the current economic

climate;

- Challenging the reasonableness of the growth rates by

comparing to historical forecasts and actual results;

- Assessing and challenging the reasonableness of key

assumptions;

- Obtaining an understanding of the Group’s process for

identifying specific impairment indicators; and

- Evaluating the adequacy and appropriateness of

disclosures relating to impairment of goodwill in the

consolidated financial statements.





Utilising our internal valuation specialists in:

- Evaluating the appropriateness of the valuation

methodology and assumptions used;

- Testing the mathematical accuracy of the models;

- Evaluating the Group’s determination for the pre tax

discount rate; and

- Comparing the terminal growth rate to market data.


Other information


The directors are responsible on behalf of the Group for the other information. The other

information comprises the information in the Annual Report that accompanies the consolidated

financial statements and the audit 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.


Our responsibility is to read the other information and consider whether it is materially inconsistent

with the consolidated financial statements or our knowledge obtained in the audit or otherwise

appears to be materially misstated. If so, we are required

to report that fact. We have nothing to

report in this regard.

Directors’ responsibilities for the

consolidated financial statements

The directors are responsible on behalf of the Group for the preparation and fair presentation of the

consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control

as the directors determine is necessary to enable the

preparation of consolidated financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors are responsible on behalf of the

Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,

matters related to going concern and using the going concern basis of accounting unless the

directors either inten

d to liquidate the Group or to cease operations, or have no realistic alternative

but to do so.

Auditor’s responsibilities for the

audit of the consolidated 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 assu

rance is a high level of

assurance, but is not a guarantee that an audit conducted in accordance with ISAs and ISAs (NZ) 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 our responsibilities for the audit of the consolidated financial statements is

located on the External Reporting Board’s website at:


https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1- 1/

This description forms part of our auditor’s report.

Restriction on use


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’s shareholders as a body, for

our audit work, for this report, or for the opinions we have formed.





Anthony Smith

Partner

for Deloitte Limited

Christchurch, New Zealand

29 May 2025

Annual Report 20259734569127802We7'r r69c
for the year ended 31 March 2025

Shareholder and Statutory Information

The Group’s shares are quoted on the NZX Main Board. As at 11 April 2025, the Company

had 1,098,372,765 ordinary shares on issue (31 March 2025: 1,098,372,765 ordinary shares).

Details of the distribution of ordinary shares amongst shareholders at 11 April 2025

are set out below.

Stock exchange listing

Distribution of security holders

Number of Security HoldersNumber of Securities

NUMBERPERCENTAGENUMBERPERCENTAGE

1–1,000

66245.97%313,1410.03%

1,001—5,00035524.65%809,4120.07%

5,001—10,000664.58%502,4850.05%

10,001—100,0001188.19%3,028,3210.28%

100,001—500,000503.47%3 ,7 74 ,4 6 20.34%

500,001 or more18913.13%1,089,944,94499.23%

1,440100.00%1,098,372,765100.00%

Annual Report 20259834569127802We7'r r69c
The 20 largest shareholdings at 11 April 2025 are provided in the table below.

20 largest shareholdings

Number

of shares held

Percentage

of shares held

Laurence James Redmayne, Samantha Jane Redmayne

& Cullinane Steel Trustees (2003) Limited

168,640,92315.35%

Carl Stephen Storm, Dawn Margaret Storm

& C&F Trustees 35776 Limited

158,004,00014.39%

WFT Finance Limited

156,153,84614.22%

Glendarvie Holdings Limited

75,268,2386.85%

Shane David Edmond

52,667,6924.80%

Forsyth Barr Custodians Limited

42,952,4403.91%

Lloyd George Phillips, Wayne Vincent Phillips

& Craig Bruce Phillips

31,850,3532.90%

Malcolm Guy Bailey

27,516,0002.48%

New Zealand Permanent Trustees Limited

24,756,7152.25%

Ashvegas Limited

2 2 , 8 67,6 9 22.08%

New Zealand Depository Nominee

19,721,1711.80%

Youthlab Limited

17,000,0001.55%

Andrew John Howard

16,841,5131.53%

Barry John Gray & Fiona Margaret Gray

16,149,2051.47%

John Lee, Susan Iris Lee & Paul Johnston

15,841,5131.44%

WFT Investments Limited

15,384,6151.40%

Mounterowen Limited

13,136,0731.20%

WFT Property Limited

13,000,0001.18%

Leveraged Equities Finance Limited

1 2 , 3 8 7, 2 621.13%

Betalert Limited

10,400,0000.95%

Annual Report 20259934569127802We7'r r69c
The following information is given pursuant to Section 293 of the Financial Markets

Conduct Act 2013.

The following are recorded by the Company at 31 March 2025 as Substantial Product Holders

in the Company, and have declared the following relevant interest in quoted financial products

under the Financial Markets Conduct Act 2013:

Substantial security holders

Substantial product holderRelevant interest

Empire Waste Technology LimitedUp to 750,000,000 if the maximum number

of convertible notes issued to Empire are converted

1. Wayne Wright

2. WFT Finance Limited (WFT Finance)

3. Manuka Skin Care Limited (previously called

WFT Investments Limited) (Manuka Skin Care)

4. WFT Property Limited (WFT Property)

Wayne Wright is the sole director and has effective

control of the shareholder in each of:

a. WFT Finance, which holds 156,153,846 shares

in WasteCo;

b. Manuka Skin Care, which holds 15,384,615

shares in WasteCo; and

c. WFT Property, which holds 13,000,000 shares

in WasteCo.

Wayne Wright therefore has the power directly or

indirectly to control the voting rights attached to

184,538,461 WasteCo shares in aggregate.

Laurence James Redmayne, Samantha Redmayne,

Cullinane Steele Trustees (2003) Limited

168,640,923

Carl Storm, Dawn Storm and C&F Trustees 35776 Limited158,004,000

Shane Edmond, Belinda Edmond and Ashvegas Limited85,615,384

Glendarvie Holdings Limited, Robert Baan

and Rowena Baan-Mathias

75,268,238

The total number of quoted financial products issued by the Company at 31 March 2025 were

the 1,098,372,765 ordinary shares.

Annual Report 202510034569127802We7'r r69c
The names of the directors holding office during the year are:

Directors

NameOffice heldDate

Roger Gower (Chair)Independent directorAppointed October 2020

Shane EdmondIndependent directorAppointed December 2022

Simon HerbertNon-independent directorAppointed December 2024

Sean JoyceNon-independent directorAppointed December 2024

James RedmayneNon-independent directorAppointed December 2022

Rodney MalamNon-independent director

(alternate to S Herbert)

Appointed December 2024

Angus CooperIndependent directorResigned October 2024

Carl StormExecutive directorResigned August 2024

Shane Edmond and James Redmayne are directors of each of the Company’s subsidiaries except

for Civic Waste Limited where Roger Gower is the sole director.

Annual Report 202510134569127802We7'r r69c
During the year the following remuneration and other benefits were paid or payable to directors

of the Group. The amounts below reflect the remuneration related expenses included in the

Group’s consolidated financial statements.

Directors’ remuneration


Directors

fees


NZ$000

Employee

remuneration


NZ$000

Consulting

fees


NZ$000

Share based

payments


NZ$000

Total


NZ$000

Roger Gower

(Chair)

70—5623149

Angus Cooper

38—27(11)54

Shane Edmond

80———80

Simon Herbert

16———16

Sean Joyce

16———16

Rodney Malam

(alternate)

—————

James Redmayne

16132140—288

Carl Storm

—233206—439

Annual Report 202510234569127802We7'r r69c
The following entries were made in the interest register during the year ended 31 March 2025.

The directors provided the following disclosure of entities in which, due to the nature of their

relationship, may be related parties to the Group, and transactions in which they have an interest.

Angus Cooper received $27,000 for providing consulting services to the Group.

Shane Edmond receives directors fees of $65,000 per annum.

Interests register

Angus CooperNature of interestShare Allocation (if shareholder)

Agile Projex LimitedDirector & shareholder100% (individually held)

WasteCo Group LimitedDirector—

Shane EdmondNature of interestShare Allocation (if shareholder)

Alvarium (NZ) Wealth

Management Holdings Limited

& related entities

Director—

Safeco Training NZ LimitedDirector—

Sortco NZ LimitedDirector—

WasteCo Finance NZ LimitedDirector—

WasteCo Group LimitedDirector & shareholder7% (individually held)

WasteCo Holdings NZ LimitedDirector—

WasteCo NZ (Southern) LimitedDirector—

WasteCo NZ LimitedDirector—

WasteCo Port Services NZ LimitedDirector—

Annual Report 202510334569127802We7'r r69c
Roger Gower receives directors fees of $85,000 per annum as Chair of the Board. During the year

Roger also received 6,000,000 share options which vest over 2 years and $56,000 for providing

consulting services to the Group.

Empire Waste Technology Limited is the holder of $15 million of convertible notes issued

by the Company on 19 December 2024.

Simon Herbert receives directors fees of $65,000 per annum.

Roger GowerNature of interestShare Allocation (if shareholder)

Being AI LimitedShareholder—

Civic Waste LimitedDirector—

IntoWork Australia LimitedDirector—

IntoWork New Zealand Limited Director—

Me Today LimitedDirector & shareholder—

New Zealand Food Innovation

Auckland Limited

Director—

Primeport Timaru LimitedDirector—

Roger Gower & Associates LimitedDirector & shareholder

<1% (Individually held)

>99% (Jointly held)

WasteCo Group LimitedDirector & shareholder—

Simon HerbertNature of interestShare Allocation (if shareholder)

Empire Waste

Technologies Limited and

its associated companies

Director—

Annual Report 202510434569127802We7'r r69c
During FY2025, but before Mr Joyce was appointed a director of the Company, CM Partners

Limited received remuneration for the provision of capital markets advisory services to the

Company. This is not a material interest by virtue of the fact that Sean Joyce was not a director of

the Company at the time that fees were paid to CM Partners Limited.

During FY 2025, but before Mr Joyce was appointed a director of the Company, Mr Joyce’s law firm

received remuneration for the provision of legal services to the Company. This is not a material

interest by virtue of the fact that Sean Joyce was not a director of the Company at the time that

fees were paid to Mr Joyce for the provision of legal services.

Mounterowen Limited is the legal owner of 13,136,073 ordinary fully paid shares in the Company.

Sean Joyce receives directors fees of $65,000 per annum.

Rodney Malam is an alternate for Simon Herbert. As such he receives no directors fees.

Empire Capital Limited is a company associated with Empire Waste Technology Limited,

which company subscribed for $15 million of convertible notes issued by the Company

on 19 December 2024.

Sean JoyceNature of interestShare Allocation (if shareholder)

CM Partners LimitedDirector & beneficial owner—

Corporate CounselPrincipal—

Empire Capital LimitedDirector—

Mounterowen LimitedDirector & shareholder—

Rodney MalamNature of interestShare Allocation (if shareholder)

Empire Capital Limited and

its associated companies

Chief Financial Offer—

Annual Report 202510534569127802We7'r r69c
During the year James Redmayne received $132,000 remuneration in relation to his role as an

executive director. Following his resignation as an employee James has received $140,000 in

consulting fees and he receives directors fees of $65,000 per annum.

BASTRE Properties NZ Limited leases premises to the Group.

James RedmayneNature of interestShare Allocation (if shareholder)

BASTRE Properties NZ LimitedDirector & trustee of shareholder—

BEAR Finance NZ LimitedDirector & beneficial owner45% (jointly held)

HAZMIT LimitedDirector & shareholder90% (jointly held)

REDALL NZ LimitedDirector & shareholder100% (individually held)

Redmayne Innovations LimitedDirector & shareholder100% (individually held)

Safeco Training NZ LimitedDirector—

Sortco NZ LimitedDirector—

Staffco NZ LimitedDirector & trustee of shareholder—

Variable Financial Solutions

(NZ) Limited

Director & shareholder50% (jointly held)

WasteCo Group LimitedDirector & shareholder20% (jointly held)

WasteCo Finance NZ LimitedDirector—

WasteCo Holdings NZ LimitedDirector—

WasteCo NZ (Southern) LimitedDirector—

WasteCo NZ LimitedDirector—

WasteCo Port Services NZ LimitedDirector—

Annual Report 202510634569127802We7'r r69c
During the year Carl Storm received remuneration of $233,000 in relation to his role as an

executive director. Following his resignation as an employee Carl has received $206,000 in

consulting fees. Carl resigned as a director of the Company and its subsidiaries in August 2024.

BASTRE Properties NZ Limited leases premises to the Group.

Carl StormNature of interestShare Allocation (if shareholder)

BASTRE Properties NZ LimitedDirector & shareholder44% (jointly held)

Cada Group LimitedDirector—

Staffco NZ LimitedDirector & shareholder32% (jointly held)

WasteCo Group LimitedDirector & shareholder23% (jointly held)

WasteCo Holdings NZ LimitedDirector—

WasteCo NZ (Southern) LimitedDirector—

WasteCo NZ LimitedDirector—

WasteCo Port Services NZ LimitedDirector—

At 31 March 2025 the directors of the Group held the following relevant interests in quoted

financial products and financial products that may convert to quoted financial products.

Directors’ relevant interests

Ordinary sharesConvertible notesShare options granted

VESTEDNOT VESTED

Shane Edmond

85,615,384———

Roger Gower907—3,500,0004,000,000

Simon Herbert—750,000,000——

Sean Joyce13,136,073———

James Redmayne168,640,923———

Rodney Malam————

Annual Report 202510734569127802We7'r r69c
Simon Herbert has a relevant interest in $15 million convertible notes which may be converted

into up to 750,000,000 ordinary shares.

The Group indemnifies all current directors of the Group against all liabilities (other than to a

member of the Group) which arise out of the performance of their normal duties as directors,

unless the liability relates to conduct involving lack of good faith.

The number of employees, not being directors disclosed in the Directors’ remuneration section

above, within the Group receiving annual remuneration and benefits above $100,000 are:

Directors’ indemnification

Employee remuneration

RemunerationNumber

$100,000—$109,99913

$110,000—$119,9997

$120,000—$129,9992

$130,000—$139,9993

$140,000—$149,9991

$150,000—$159,9991

$160,000—$169,9991

$170,000—$179,9991

$180,000—$189,9993

$190,000—$199,9991

$200,000—$209,9991

$210,000—$219,9991

$230,000—$239,9991

$320,000—$329,9991

$340,000—$349,9991

$370,000—$379,9991

$380,000—$389,9991

Annual Report 202510834569127802We7'r r69c
CEO David Peterson remuneration consists of an annual salary of $325,000, a short-term

incentive of up to 20% of his annual salary, a 3% contribution to Kiwisaver and a vehicle allowance

of $24,000 per annum. Payment of the short-term incentive is dependent upon the achievement

of performance targets aligned to the Group’s strategy with a focus on revenue

and EBITDA growth.

No donations were made by the Group during the year.

Deloitte Limited is the auditor for the Group. Audit fees due and payable to the auditor

for the year ended 31 March 2025 were $207,000. The Group paid a further $62,000 to Deloitte

Limited for acquisition due diligence services.

WasteCo Group has not relied on any waivers issued by the NZX in the 12 months

ended 31 March 2025.

The following disclosures are required by Rule 19B(2) of the Takeovers Code about the issue

of convertible notes by WasteCo Group Limited to Empire Waste Technology Limited, under a

convertible note subscription agreement dated 19 December 2024 (the ‘Agreement’), approved

by shareholders on 13 December 2024.

Shareholders approved an allotment to Empire Waste Technology Limited of a $15 million

principal amount of convertible notes (‘Notes’) convertible into 750 million ordinary shares

(voting securities), on the terms described in the Notice of Special Meeting of Shareholders

dated 27 November 2024. The Notes were allotted on 23 December 2024.

Chief Executive Officer’s (‘CEO’s’) remuneration

Donations

Auditor

NZX Waivers

Takeovers Code disclosures

A summary of the terms of the approved allotment package

Particulars, as at 31 March 2025, of:

• the number of voting securities already allotted to the allottee under the approved

allotment package is Nil;

• the number of voting securities on issue that are held or controlled by the allottee, and the

percentage of all voting securities on issue that that number represents is Nil;

Annual Report 202510934569127802We7'r r69c
• the aggregate of the percentages of all voting securities that are held or controlled

by the allottee and the allottee’s associates is Nil;

• the maximum percentage of all voting securities that could be held or controlled

by the allottee on completion of all the allotments is 40.576%;

• the maximum aggregate of the percentages of all voting securities that could be held

or controlled by the allottee and the allottee’s associates on completion of all the allotments

is 40.576%;

• The date used for these calculations is 20 May 2025. These calculations have been made on

the assumptions that:

→the number of voting securities is the number of WasteCo shares on issue on the

calculation date (being, 1,098,372,765);

→the allottee is allotted the maximum number of shares under the allotment;

→that there is no proportionate consolidation or subdivision of shares in WasteCo

during the term (were there to be a consolidation that would proportionately reduce

the number of shares issued on allotment; were there to be a subdivision that would

proportionately increase the number of shares issued on allotment); and

→neither the allottee nor any associate of the allottee currently holds any

shares in WasteCo.

This annual report of WasteCo Group Limited is dated 30 May 2025 and is signed

on behalf of the Board by:

Roger Gower

Director

Shane Edmond

Director

Annual Report 202511034569127802We7'r r69c
Company Directory

3202682

24 November 2010

421 Blenheim Road

Upper Riccarton

Christchurch 8041

421 Blenheim Road

Upper Riccarton

Christchurch 8041

→Roger Gower

→Shane Edmond

→James Redmayne

→Simon Herbert

→Sean Joyce

→Rodney Malam

Kiwibank Limited

Christchurch

MUFG Pension & Market Services

Level 30, PwC Tower

15 Customs Street

West Auckland 1010

Phone 09 375 5998

wasteco.co.nz

Deloitte Limited

151 Cambridge Terrace

Christchuch 8013

Chapman Tripp

Level 34, 14 Customs Street West

Auckland Central 1010

Company number

Incorporated

Registered office

Registered office

Board of Directors

Bankers

Share Register

Website

Auditor

Solicitors

Thank you for reading
We're committed to delivering cleaner environments everywhere

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a physical copy, and recycle it properly when you're done.

421 Blenheim Road

Upper Riccarton

Christchurch 8041

New Zealand

wasteco.co.nz

0800 341 11 11

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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