Financially and operationally, it was another strong year with the number of pearls harvested at 621k, compared to the 598k harvested in FY24, and the medium-term trend for pearls to be harvested is for a positive increase. Profits for FY25 were again strong, with EBITDA at $18.6M, against $22.6M in FY24.

Total revenue for FY25 was $44.3M vs FY24 $41.7M, and pearls sold in FY25 were 593k, up from 477k in FY24. Atlas Pearls will carry closing stock of 219k pearls into FY26 (FY24: 224k). Net profit after tax for the year was $21.9M, compared to $31.5M in FY24.

As stated in last year’s report we saw pricing increasing over the year, and for FY24 we had prices achieved in H1 FY24 that were the highest seen for several years, driving the profit and cash results for the Company. In H2 FY24, we saw prices decline, from those in H1 FY24, but prices achieved were still at levels that we would consider very good, based on our current operating model. In FY25, we saw prices being very stable and consistent at the levels we saw in H2 FY24. This stability has been good for producers and our customers who can both go about their business with confidence of a stable business environment.

The quality of pearls produced in the year was similar to that of FY24, as measured by the “index score”, our preferred internal measure of pearl quality. In FY25, the quality index score showed results where H1 was marginally higher than H2, albeit well within the normal range of variation expected across genetic groups and cultivation location.

With the solid profit result we finished the year in a strong financial position, with cash in the bank of $20.2M (FY24: $17.6M). We still have an overdraft facility of $2.5M to provide us with working capital flexibility to better manage our sales cycles and to maximise opportunities, however we have not had to call on this overdraft in FY25.

In view of the EBITDA result and associated cash position for FY25, the Board has resolved to declare a final dividend of 1.4 cents per share, fully franked, and payable on 26 September 2025.

Atlas Pearls’ performance over the year is attributable to the ongoing work and dedication of the entire team across all facets of the business. Their collective efforts were instrumental in executing the initiatives that we identified from an operational and sales perspective. We again held leadership workshops in Sanur, convening senior leaders from operations, sales, and finance.

We presented the FY30 strategy to the group and discussed the initiatives that we will be putting in place to help us deliver the strategy, and to continue to drive operational excellence and execution. These sessions were pivotal in aligning the leadership within the business and determining the strategic focal points essential for executing the FY30 strategy while also setting a focus on the execution of our operational budgets.

FY30 STRATEGIC ROADMAP

During the year we finalised the FY30 Strategic Roadmap for the business which covers every aspect of the business including sales and operations. This has been communicated to the business, and we have teams in place that are executing 12 key initiatives that will drive the continued improvement in the business, mapping out continued growth of the business and its activities over this period. The strategy has four focus areas:

• Quality operations
• People and culture
• Sustainability
• Customers

We will, over the term of the strategy period, aim to increase the number of pearls that we produce by between 30% and 50% per annum by FY30, and will also target a reduction in the real cost of production for the pearls produced.

To realise the opportunity to increase pearl production, we are running several initiatives in tandem, with the most material being:

• Developing joint ventures with juvenile shell producers to accelerate our supply of shell to nucleate, at a lower average cost per unit.
• Growing organically through traditional means, by increasing capacity on our farms and continuing to search for and develop new farm locations.
• Optimising the cultivation duration on a per site basis, to increase asset turnover, and reduce production loss to mortalities.

And while we have put a lot of time into developing and cultivating these arrangements and relationships, there is no guarantee these initiatives will all be successful. However, they are mutually exclusive and there are limited interdependencies, maximising the chance one or more will be a success in materially increasing our production levels over the long term.

Atlas Pearls is engaging with a number of government agencies to gain support and collaborate across several areas, as our strategic roadmap closely aligns with the Indonesian Government’s Blue Economy Roadmap 2023–2045. The priority sector of Marine Capture Fisheries and Aquaculture outlines that

‘the development direction of capture fisheries and aquaculture will be focused on encouraging the implementation of sustainable management of capture fisheries and aquaculture … improving aquaculture practices to be more sustainable and environmentally friendly... encouraging the downstream of aquaculture products … and the application of innovative and sustainable technology solutions.’

Atlas Pearls is well placed and already actively pursuing initiatives in these areas. This has been recognised by sectors of the Indonesian Government, positioning us to participate in initiatives that offer the greatest mutual benefit for Atlas Pearls while aligning with the Indonesian Government’s vision for its Blue Economy.

SALES INITIATIVES

Atlas Pearls continues to build its revenue and execute its strategy of being a multi-channel distribution company that looks to maximise the value of every pearl that we grow and harvest. We have continued to sell pearls and enhance our offering through our traditional channels, including hybrid auctions in Kobe, Japan, and Bali, Indonesia. Loose pearls are also available online via our wholesale portal while auctions are taking place. Additionally, we have increased the number of pearls sold through private sales to large loose pearl customers.

As part of our sales strategy, we have focused on servicing and reconnecting with our wholesale customers, primarily within Australia, but also in Asia and Europe, by attending multiple jewellery fairs and trade shows across both regions. We continue to grow our customer base not just for loose pearls but also in the value-added areas, particularly strands and matched pairs, where we can deliver significant value outside of the traditional auction channels.

We have reviewed our sales patterns and the timing of pearl movements after harvest and grading. Based on this, we have restructured how pearls flow through the pipeline, giving each pearl multiple opportunities to sell in Indonesia before being exported, where options become more limited. This marks a strategic shift from our previous approach of moving all pearls to Australia, which restricted flexibility. Due to tariff restrictions, pearls could not be re-imported into Indonesia for value-add or low-grade sales, even though that is where they originated.

This change has given us a clearer sales focus and has also now led to increased utilisation of our Indonesian grading employees between harvests, by engaging them in value-add tasks. In addition, we are now investing more in training and quality reviews for our grading team in Bali, with an eye to handling the growing volume of pearls expected in the coming years.

In March FY25, we refurbished and re-opened our flagship retail and pearling experience in North Bali to deliver an enhanced offering that tells the Atlas Pearls story and takes visitors on a journey through sustainable pearling.

OPERATIONS INITIATIVES

As part of our FY30 strategy we identified key continuous improvement initiatives which are grouped at a high level under the quality operations focus area:

• Grow a better pearl.
• Reduce the cost of production.
• Diversification opportunities.

These are underpinned by our existing standard operating procedures (SOPs) for our operations personnel and are supported by our R&D and Innovation function. We are leveraging the extensive data built up in the business over many years to better understand our operations and identify areas for improvement. Some areas of focus include:

• Gaining a better understanding of the factors affecting oyster health and pearl quality.
• Developing farming methods to reduce cost of production while improving pearl quality.
• Diversifying revenue through alternative revenue streams at our existing operations and locations.

We have one of the largest pearl cultivation databases in the world. With the help of external advanced analytics consultants, we are integrating our husbandry data from over 5 million pearls produced with environmental data over the previous 15 years. This will enable us to scientifically deepen our understanding of how environmental conditions interact with our husbandry practices to produce the highest quality pearls. As we expand the database, this knowledge will allow us to identify the optimal pearl cultivation environments across Indonesia and guide site selection for new operations.

NEW SITE DEVELOPMENT AND GROWTH PLAN

We have a number of levers to expand pearl production. Our strategy in expanding capacity, and therefore production, is to increase the volume of pearls we can sell, reduce their average cost through greater economies of scale, and diversify and de-risk our production. As outlined above, the three largest levers are:

• Augmenting our production through joint ventures, production sharing agreements, and oyster purchases.
• Organically growing production by expanding our traditional production model.
• Optimising our production cycle to increase asset turnover and reduce mortalities.

Our initiative of augmenting production via third party providers, through them growing out our own spat or providing externally bred oysters, at juvenile stage of 12 to 18 months, is a very efficient and capex-light route to expansion, also providing additional geographic diversification and an alternative channel of supply outside our own nursery farms. We have signed long-term agreements with a number of providers.

During the year we experienced a period of elevated mortalities at our North Bali nursery, which would have led to a material reduction of oysters available for seeding in the coming year, and pearls in the medium-term. However, we were able to leverage our third-party relationships to purchase more than 300,000 oysters ready for seeding in 4-6 months. This enables us to keep our growth trajectory while demonstrating the benefit of a diversified oyster supply.

We will look to grow this supply channel going forward; however, it will never represent the majority of our needs, as the continuity of supply from our own hatcheries and nurseries remains a key pillar of our ongoing operations and future expansion.

Our organic growth has seen incremental capacity expansions at our North Bali, West Lembata (including a trial hatchery facility), Banyu Biru, Alyui, and Sumba sites in the year, with a reduction in capacity at the Lembata site (a separate site to West Lembata). These expansions are relatively low-cost and further dilute the fixed cost of each site.

The largest expansion program is at the new trial site in Sumba. We now have almost 30,000 nucleated oysters on lines in Sumba, with plans to increase to 50,000. This site is a trial, and we will be disciplined in deploying additional expansion capital expenditure until results are proven. To date, mortalities on nucleated oysters in Sumba have been above averages seen at other sites. Trials in growing juveniles have been more promising and, depending on pearl quality at the first harvest, the focus of the site could pivot towards juvenile production.

In addition to Sumba, we are actively searching for new greenfield pearl farm developments, supported by the aforementioned analytical processes being applied. The time from identifying a site to commencing operations is rarely less than three years; therefore, we aim to maintain a continual pipeline of prospects being identified and developed.

Production cycle duration is currently being investigated to determine the optimal cultivation period at each site. This involves calculating the profit-maximising harvest age, taking into account the cost of continued rearing, greater numbers available from reduced lifecycle mortalities, and any impact on pearl quality, and consequently, price. Based on initial results, it is likely that the majority of sites will remain on the current 24-month cycle. However, our largest pearl cultivation site in Alyui could see significant benefit from moving to a shorter cycle. This would result in increased production and a lower average cost per pearl for the site.

HR AND SAFETY

Overall, this year has been a successful one for both HR and safety. We have made significant progress in developing and implementing training programs, improving safety protocols, and enhancing employee engagement. Our focus on safety, leadership development, and employee well-being has yielded positive results, and we will continue to build on these achievements in the coming year. With a strong foundation in place, we are well-positioned to drive further improvements and achieve our goals.

The HR team has made significant progress in FY25, including:

• Development and implementation a leadership training program.
• Development of a supervisor training program.
• Creating a training program to build understanding and engagement of company values.
• Establishment of a mentorship program, matching mentors from within the Company’s leadership with mentees, with defined processes and expectations.
• Developing specific KPIs for employees for assistant manager level and above and communicating them to the relevant employees.
• Conducting the first-ever full performance review for all the employees across the Company, followed by a lessons learned process to improve for the coming year.
• Our employee engagement survey has provided valuable insights, and we have developed actions to address areas for improvement. We have designed a quarterly HR newsletter to ensure transparency around HR programs, recognise long-term employees, and encourage better employee welfare. We have also created a rewards and recognition program, and established a way for employees to submit questions or concerns anonymously through a whistleblower process.
• The health and safety team have made significant progress in FY25 and, through their focus, have achieved the following results, among others:
• Reduction in the occurrence of Lost Time Injuries (LTIs) and severe injuries through targeted employee education and awareness initiatives
• Conducted scheduled and ongoing toolbox talks and awareness campaigns that have played a key role in this achievement, enabling employees with the knowledge and skills necessary to work safely and avoid injuries.
• Completed at least two deep-dive audits on each site, delivered training to all relevant personnel, and conducted monthly drills.
• Completed ICAM (Incident Cause Analysis Method) training for our safety coordinators.
• Safety officers have completed the next step in the certification required in the health and safety field as well as completing the train-the-trainer, focusing on high-risk activities such as basic sea survival, man overboard, and fire hazards.
• Engaged an external expert to conduct audits of our diving practices, record-keeping, and equipment. From this we have developed a structured ongoing engagement focusing on testing, training, and monitoring of this area of our operations.
• Analysed incident data to identify our recurring incidents, creating an action list to target a reduction of the risk these hazards impose.
• Communicated best safety practices to employees, and nominated first-aid personnel on each site, as back up for the safety officers.
• Developed awareness programs for Hepatitis and Malaria, and created a schedule of regular health visits.

Our focus on safety has been a top priority, and we will continue to build on these achievements as we go forward.

GENETIC IMPROVEMENT PROJECT

Commencing two years ago, the sampling and genetic sequencing of our broodstock has continued, with approximately 4,500 oysters having now been sampled. The use of the resulting breeding matrix is now a business-as-usual activity, and we aim to establish our founder population in FY26. As the pearl life-cycle is a 4-year process, this is considered to be a long-term strategic project, with benefits expected to accrue over the medium to long-term.

We had originally planned to start work on the founder population in FY25, but a fire at our Gerokgak hatchery, the smaller of our two facilities in Bali, required us to shift focus to increasing production at the other, larger hatchery at Penyabangan. Despite the fire, we were able to continue spat production at planned levels. Reconstruction of the Gerokgak hatchery will commence once the necessary permits are issued. The building was insured, and we are taking this opportunity to construct a larger, upgraded facility.

DATA CAPTURE AND IT SYSTEMS

The data capture project, initiated last year to centralise information in a cloud-hosted database, has now been expanded. We are now using the data from a number of function-specific systems to leverage historical trends for data-driven decision making. This enhanced capability also supports the development of forwardlooking models to assist with planning for financial forecasting, sales planning, and operations planning.

We have built databases and dashboards in the following areas:

• Operations Dashboard – all by cohort and tracked through the four-year growth cycle:

- Hatchery and nursery

- Grow-out farms

- Harvest results

- Grading information

- Technician data and splits

- Transport

• Site Efficiency Matrices Dashboard - for benchmarking the operational performance of farms.
• Dynamic Harvest Forecast Model - provides a two-year production forecast based on hundreds of live feed inputs from across the business.
• Sales and Marketing Dashboard - to increase our understanding of, and sophistication in managing our different product types and sales channels.

We continue to refine our approach in this area, building a deeper understanding of our results and gaining insights into the drivers of growing a better pearl. The collection and integration of data into our databases, and use of this information, are increasingly becoming business-as-usual activities.

ESG/SUSTAINABILITY AND COMMUNITY ENGAGEMENT (CSR)

Atlas Pearls has a longstanding commitment to supporting the villages, local environment, and communities around our farms. To strengthen this commitment, late in FY25 we created a full-time role to lead our Sustainability and CSR activities. As the Company has grown, we have recognised the need for a dedicated resource in this area to continuously improve our efforts and strategically plan initiatives that deliver meaningful outcomes. This ensures that we are partnering with the right organisations and individuals who have the capacity to make a real difference to our communities and the environment.

During the year we published our first half-yearly Sustainability Update, which establishes baseline measures and how we will track improvements across key areas. This framework aligns with the Global Reporting Initiative (GRI) standards, providing transparency and tangible, measurable outcomes. It also adheres to the United Nations Sustainability Development Goals (SDGs), ensuring that we keep in step with global endeavours as well as Indonesian sustainability and environmental stewardship initiatives. Our baseline numbers are periodically reviewed by external consultants to independently verify our data and measurement processes going forward. Additionally, we released a full-year FY25 Sustainability Update, parts of which are included in the annual report, with the complete update available on our website at www.atlaspearls.com. au/pages/sustainability.

During the year, we celebrated our 30-year anniversary. To mark this milestone, we supported each local village at our farms with a longterm capital project aimed at delivering lasting improvements. These projects included refurbishing community health clinics, installing drinking water wells, providing generators to areas without electricity, and many more. A summary of each initiative is provided in our fullyear Sustainability Report, which can be found on our website. We are very proud of our work in this area and the difference we are making, not only for our 1,200 employees in Indonesia, but also our stakeholders in the region.

DIVERSIFICATION

As announced to the market in June 2024, we appointed a Chief Innovation Officer and, as well as looking at innovation and R&D in our pearling operations, the Company is exploring revenue diversification opportunities within our existing geographic locations. As a leading pearl producer, with a skilled aquaculture workforce, a comprehensive operational presence in Indonesia, and backed with strong government and community relationships, Atlas Pearls has several core competencies that could be applied to closely related aquaculture products.

Throughout FY26, we will continue to evaluate key opportunities in this space, leveraging external hatcheries, partner facilities, and third-party expertise to build models and assess viability. Specifically, we are looking at alternative sources of protein, such as lobster and abalone, to determine whether they can be farmed efficiently and profitably at a commercial scale. Within Indonesia, these species are currently farmed by small-scale, artisanal operators, and we are investigating the potential to commercialise such operations alongside our existing oyster farming infrastructure.

We acknowledge the hard work and dedication from our management team and employees who have demonstrated exceptional commitment in executing the strategy into tangible actions and navigating periods of change. It is important to emphasise that Atlas Pearls thrives on a culture of continuous improvement and evolution, not just in terms of the perspective of our standard operating procedures related to our oysters, but also in how we view and measure the key aspects of our business.

Our focus remains on the production and distribution of the highest quality, ethically produced, and luxurious pearls in the world. This focus is underpinned by our Vision and Mission:

OUR VISION - To be the global leader in the production of the world’s finest South Sea pearls.

OUR MISSION - Producing the world’s best South Sea pearls in a way that is sustainable, respectful, and caring of our environment, people, communities and shareholders.

Michael Ricci

CEO – 28 August 2025