JOYCE CORPORATION LTD ANNUAL

Operating and Financial Review

OPERATING AND FINANCIAL REVIEW Principal activities During the financial year, the principal activities of the Group consisted of: - Majority owner of 51% of KWB Group Pty Ltd, operator of retail kitchen and wardrobe showrooms. - Franchisor of the Bedshed chain of retail bedding stores; and - Owner and operator of five Bedshed retail stores. Significant changes in state of affairs There are no other significant changes in the state of affairs of the Group that occurred during the financial year that are not otherwise described in this report. Review of results and operations Group results For the 2026 financial year, the Group reported revenue of $169.9 million (2025: $148.2 million), profit before tax of $31.2 million (2025: $22.3 million) and a profit after tax of $21.6 million (2025: $15.8 million). At 30 June 2026, the Group held total equity of $43.2 million (2025: $40.0 million) and cash and cash equivalents of $48.5 million (2025: $39.2 million). The Group remains debt free at 30 June 2026. Operating cashflow (including principal lease payments, excluding interest and tax) was $38.0 million (2025: $28.7 million). Division results Segment Segment Segment EBIT Revenue EBIT Margin % FY26 FY25 FY26 FY25 FY26 FY25 $’000 $’000 $’000 $’000 % % KWB Group 143,236 120,388 31,612 24,266 22.1 20.2 Bedshed franchise operations 6,213 6,104 2,996 2,830 48.2 46.4 Bedshed company-owned stores 20,437 21,114 1,719 1,518 8.4 7.2 KWB KWB delivered revenue of $143.2 million (2025: $120.4 million) and EBIT of $31.6 million (2025: $24.3 million) at a margin of 22.1% (2025: 20.2%). KWB's cash on hand at 30 June 2026 was $30.0 million (including cash related to customer deposits of $15.0 million) compared to $23.1 million at 30 June 2025 (including customer deposits of $12.9 million). KWB achieved double-digit growth in orders, revenue and EBIT in FY26, supported by order book strength, gross margin man- agement, measured network expansion and contributions from recently opened showrooms. With 31 showrooms at year end and a long-term target footprint of 55+ showrooms in A-grade homemaker centres, KWB has a considerable network expansion opportunity, including flagship showrooms at Fyshwick (ACT), opening in Q2 FY27, and Fortitude Valley (QLD), scheduled for opening late FY27. Annual Report FY25 – Joyce Group 17 ylno esu lanosrep roF Directors’ Report Year Ended 30 June 2026 Be