Annual Report 2024/2025

SMARTER PROTECTION

Safer EnvIronments

SMARTER PROTECTION

Safer EnvIronments

From humble beginnings as a family-run business to a publicly listed industry leader, Exterminators has transformed the pest control sector in Sri Lanka. Today, we combine the precision of AI and the power of advanced technology to deliver innovative, eco-conscious pest management solutions that protect people, property, and the planet.

Our journey has been one of reinvention and expansion stretching across Sri Lanka and beyond its borders while setting new benchmarks for efficiency, safety, and sustainability. By redefining what pest control means in the modern era, we are shaping a future where smarter protection creates a safer environment for all.

CONTENTS

"OUR INVESTMENTS IN ENVIRONMENTALLY FRIENDLY AND CUTTING-EDGE PEST CONTROL SOLUTIONS

HAVE NOT ONLY ENHANCED OUR SERVICE OFFERINGS BUT ALSO REINFORCED OUR COMMITMENT TO SUSTAINABILITY."

"THE KEY STRATEGIC PRIORITIES FOR EXTERMINATORS WERE TO DIVERSIFY ITS CLIENT BASE AND SERVICE

OFFERINGS AND DIGITALIZE OPERATIONS."

CHAIRMAN'S MESSAGE

16-18 Pages

MANAGING DIRECTOR'S REVIEW

19-20 Pages

OUR STORY

About Us | 5-9

Our Journey | 10-11

Performance Highlights | 12-13

Our Contribution to the Progress of Sri Lanka | 14-15

Chairman's Message | 16-18

Managing Director's Review | 19-20

CREATING VALUE

Our Business Model | 22-23

Strategy and Resource Allocation | 24-25

Operating Context | 26

Leading the Way in Our Business Segments | 27-31

Managing Risks | 32-36

Embedding Sustainability | 37-38

OPTIMISING OUR RESOURCES

Leading the Way in Community Leadership | 40-42

Leading the Way in Environmental Leadership and Sustainability | 43-45

Our Clients | 46-47

CORPORATE GOVERNANCE

Board of Directors | 49-51 Leadership Team | 52-53 Corporate Governance | 54-63 Audit Committee Report | 64-65

Report of the Remuneration Committee | 66

Report of the Related Party Transaction Review Committee | 67

Annual Report of the Board of Directors on the State of Affairs of

the Company | 68

FINANCIAL STATEMENTS

Statement of Directors' Responsibilities | 70

Independent Auditor's Report | 71-75

Statement of Comprehensive Income | 76

Statement of Financial Position | 77 Statement of Changes In Equity | 78 Statement of Cash Flows | 79 Notes to the Financial

Statements | 81-106

Five Year Summary | 107

Shareholder and Other Information | 108

Notice of the Annual General Meeting | 109

Notes | 110

Form of Proxy | 111-112

Circular to Shareholders | 113-114

Form of Request for Printed Copy of the Annual Report 2024/25 | 115

Registration of Shareholder Details for Online Participation | 116

Corporate Information | Cover Back Inner

Exterminators PLC | Annual Report 2024/25 3

VIsIon MIssIon

To be the champion in what we do.

To help communities enhance their living standards by;

• Innovating, designing, and articulating the most environmentally-sustainable and advanced products, services, solutions, and business practices

• We also provide support to as many communities as we can through the 'Exterminators Care' social accountability initiatives for our employees and community.

• Living our mission through our words and actions.

VALUEs

Caring for people:

Caring for the planet:

Being passionate about what we do:

Doing the right thing, even when it's hard:

We are respectful and considerate of one another, our customers, and our partners, and we do all we can to positively impact and enrich the lives around us.

In every aspect of our behavior and actions, we hold ourselves accountable for making responsible decisions and finding ways to lessen our impact on Earth

We work hard because we love what we do. We take pride in our work and the difference we make in the world.

Honesty and integrity drive our everyday actions and are reflected in our common belief that we should do what's best for our industry and the people and communities we serve.

How it Began

Since we began more than two decades ago, we have committed

to consistently set the standard for quality, service and innovation.

Exterminators PLC has been a beacon of excellence in the pest

control industry. Giving honor to our proud legacy we have raised the bar and created new paradigms in the pest control arena.

Exterminators PLC (the Company), was founded in 1998 by Marlon Ferreira, a passionate entrepreneur and it has now become Sri Lanka's premier pest tech and environmental technology Company. It began as a sole proprietorship, and it was later incorporated in 2004. The Company created history in 2022 by becoming the first pest management Company in South Asia, emerging markets, and developing markets to be listed on a stock exchange.

The Company is a licensed pest management service institution operating in accordance with

the laws and regulations of the Control of Pesticides Act No. 33 of 1980. The Company was who believes that the success of any business is highly-dependent on the quality of services provided to customers.

From being just one individual with a spray gun, the Exterminators brand has grown exponentially and gained recognition as Sri

Lanka's premier environmental solutions provider. Through exceptional customer-centric services rendered over the years, Exterminators has become a benchmark in the

industry, setting new standards for industrial excellence, sustainability initiatives and advanced products aimed

at building a better Sri Lanka. Embracing advanced technology and continuous research and development, Exterminators is a pioneer in cutting-edge environmental enhancement solutions for homes and businesses. The products and solutions are articulated, designed, and invented to face any existing

and emerging pest and termite challenges.

4 Exterminators PLC | Annual Report 2024/25

EXTERMINATORS PLC IS DRIVEN BY PURPOSE AND RESILIENCE. WE CREATE VALUE THROUGH TRUST, INNOVATION, AND RESPONSIBLE PRACTICES. BY OPTIMISING RESOURCES AND UPHOLDING STRONG GOVERNANCE, WE ENSURE INTEGRITY IN EVERY STEP.

OUR STORY

ABOUT US

IDEATION

Collaborative Brainstorming

Diverse Perspectives

Employee Empowerment IMPACT

Holistic Evaluation

Sustainability Metrics

Continuous Improvement

IMPLEMENTATION

Structured Approach

Risk-Taking

Prototyping and Testing

1. IDEATION

Collaborative Brainstorming: These meetings are designed to harness the collective creativity of our workforce and encourage cross-departmental collaboration. Brainstorming sessions and workshops are conducted regularly.

Diverse Perspectives: We honour inclusivity and ensure that ideas are shaped by diverse viewpoints, which ultimately lead to richer and more innovative solutions.

Employee Empowerment: Every employee is encouraged to contribute ideas, fostering

a sense of ownership and commitment to the process.

3. IMPACT

Holistic Evaluation: Our evaluation process includes assessing the broader social and environmental impacts. This ensures that post implementation of innovations, we do not only look at financial outcomes, but align with our mission to create long-term value for all stakeholders.

Sustainability Metrics: We integrate sustainability metrics into our evaluation frameworks to help us measure reductions in ecological footprints and enhancements

in social welfare tied to our innovations.

Continuous Improvement: Feedback loops are established to encourage ongoing reflections and insights from stakeholders, ensuring that we continuously learn and adapt our innovative strategies.

2. IMPLEMENTATION

Structured Approach: After generating ideas, we adopt a clear framework to assess which innovations move to the development phase. This includes criteria for feasibility,

market demand, and alignment with company values.

Risk-Taking: We encourage teams to take calculated risks when implementing their ideas. A supportive environment allows for experimentation while understanding that not all attempts will lead to success.

Prototyping and Testing: Before launching any new product

or service, we swiftly create prototypes and conduct pilot tests. Feedback from these trials is invaluable, allowing for refinements before full-scale roll-out.

ABOUT US

How we Cultivate a Culture of Entrepreneurship

At Exterminators PLC, we understand that innovation thrives in a culture that encourages entrepreneurship. This involves:

Encouraging Creative Thinking:

Employees are given opportunities to explore out-of-the-box ideas and to safely challenge traditional

methodologies to foster a more inventive workplace.

Supporting Risks:

Failures are seen as learning opportunities. Thereby when our employees take risks, we offer the necessary support to analyse outcomes and make informed adjustments.

Autonomy in Projects:

Our roles have been designed to allow entrepreneurial gaps that team members can use to initiate projects that resonate with their interests and expertise.

How we Innovate by Stretching our Goals

Setting ambitious goals that stretch our capabilities is fundamental to our innovation strategy. We push our teams to stretch their capabilities, and we:

Unlock Potential:

Challenging targets encourage employees to go beyond their usual limits, enabling them to tap into their full potential.

Foster Continuous Learning:

Aiming for stretching goals instils a culture of ongoing professional development. Employees organically engage in learning activities to meet these ambitious benchmarks.

Drive Innovation:

High expectations lead to greater creativity and innovation, as teams seek novel solutions to accomplish their objectives.

Our Commitment to Stakeholder Value

Exterminators PLC is dedicated to creating value for all stakeholders-employees, customers, suppliers, and the environment. Our approach to innovation incorporates

Social Responsibility:

We prioritize developing products and services that positively impact society while meeting customer needs.

Sustainable Practices:

Environmental considerations are integral to our innovation efforts, ensuring minimal negative ecological impact and promoting sustainable growth.

Stakeholder Engagement:

We actively seek input and feedback from our stakeholders, ensuring that their needs are incorporated into our development processes.

At Exterminators PLC, innovation leadership is embedded in our organizational fabric. Our 'Innovation Matrix' not only guides our creative endeavours but also reinforces our commitment to responsible entrepreneurship and sustainability. By fostering a culture of innovation, we not only differentiate ourselves in the market but also contribute positively to society-building a better future for all.

AWARDS, ACCOLADES, ACHIEVEMENTS AND ACCREDITATIONS

QUALITY FIRST

It is our privilege to be rapidly gaining recognition as Sri Lanka's 1st integrated Management System Certified SME Company. Our desire to provide unique, reliable and responsible services has been the strength behind our drive to be accredited with the following certifications

which are proof that our pest control, termite control, mosquito control and disinfection services meet the highest quality standards that our customers have a right to expect.

1. ISO Certifications:

ABOUT US

STEPPING UP IN DIFFICULT TIMES

Exterminators PLC became the first disinfection service provider in Sri Lanka to obtain certifications for ISO 9001, ISO 14001, and ISO 45001, demonstrating their commitment to quality, sustainability, and health. This distinguishes their disinfection and sanitization services, ensuring they meet the highest safety standards when it was needed the most.

OUR INTERNATIONAL MEMBERSHIPS

We have broken borders and become active memebers of the international community which shows that we have indeed succeeded in becoming a local organization with international service and potential, proving that quality can be

achieved through proper commitment and dedication.

Below is a list of organizations that we are a member of, and what it means to our business to be recognised by them.

National Pest Management Association (USA)

Enhances our reputation and connects us with global best practices.

Singapore Pest Management Association

Provides access to regional insights and techniques.

Global Pest Management Coalition

Allows collaboration with experts worldwide to advance pest management standards.

Federation of Asia Ocean Pest Management Association

Connects us with regional peers for knowledge sharing and best practices.

British Pest Control Association

Acknowledges our commitment to compliance with international standards.

OUR COMMITMENT TO THE ENVIRONMENT

Exterminators PLC is Asia's first pest management company to receive carbon neutral certification back in 2014. This emphasizes our environmentally responsible pest management practices, showcasing our continued efforts to minimize harm to ecosystems and our dedication to sustainability.

OUR COMMITMENT TO OUR EMPLOYEES

Exterminators PLC places a strong emphasis on employee training, ensuring staff are well-versed in the latest pest management techniques and safety protocols. This culture of safety includes:

Regular training sessions focused on managing pests while adhering to health and safety standards.

Implementation of best practices that prioritize the well-being of both employees and clients.

OUR COMMITMENT TO CONTINUOUS IMPROVEMENT

We adopt a proactive approach to innovation, continuously revising and updating our pest management practices.

We keep pace with technological advancements and constantly incorporate the latest techniques into our operations.

We perform regular reviews of our certifications and standards to ensure compliance and adaptability to evolving industry needs.

In summary, Exterminators PLC stands out in the pest management

industry through our impressive array of certifications, commitment to international best practices, focus on environmental sustainability, and dedication to employee

safety and continuous improvement. This multifaceted approach enables us to deliver high-quality, safe, and effective pest management solutions while maintaining strong ethical and environmental standards.

EXTERMINATORS PLC'S CERTIFICATIONS, STANDARDS, AND COMMITMENTS:

CERTIFICATIONS AND STANDARDS

1. ISO Certifications:

   ISO 9001: Exterminators PLC is recognized as Sri Lanka's first pest management company to achieve this quality management standard, which focuses on consistent quality in service delivery, customer satisfaction, and continuous improvement.

   ISO 14001: This certification reflects the company's commitment to environmental management, ensuring they operate in an eco-friendly manner and minimize their environmental impact.

   ISO 45001: Exterminators PLC has also achieved this health and safety standard, signifying that they prioritize the health and safety of their workers and clients in all operations.

   ISO 22000: This food safety management standard validates that the company maintains stringent hygiene and safety practices in services related to food areas, guaranteeing the safety of their pest management solutions.

2. COVID-19 Response:

   During the pandemic, Exterminators PLC became the first disinfection service

   provider in Sri Lanka to obtain certifications for ISO 9001, ISO 14001, and ISO 45001,

   demonstrating their commitment to quality, sustainability, and health. This distinguishes their disinfection and sanitization services, ensuring they meet the highest safety standards during a critical time.

3. Memberships

1. International Associations:

   Exterminators PLC is a proud member of several esteemed international pest management organizations, including:

   National Pest Management Association (USA): Enhances their reputation and connects them with global best practices.

   Singapore Pest Management Association: Provides access to regional insights and techniques.

   Global Pest Management Coalition: Allows collaboration with experts worldwide to advance pest management standards.

   Federation of Asia Ocean Pest Management Association: Connects with regional peers for knowledge sharing and best practices.

   British Pest Control Association: Acknowledges their commitment to compliance with international standards.

   ENVIRONMENTAL SUSTAINABILITY

   Green Certification: Exterminators PLC is recognized as Asia's first pest

   management company to receive carbon neutral certification way back in 2014.

   This acknowledgment emphasizes their environmentally responsible pest

   management practices, showcasing their efforts to minimize harm to ecosystems.

   EMPLOYEE TRAINING AND SAFETY

   Exterminators PLC places a strong emphasis on employee training, ensuring staff are well-versed in the latest pest management techniques and safety protocols. This culture of safety includes:

   Regular training sessions focused on managing pests while adhering to health and safety standards.

   Implementation of best practices that prioritize the well-being of both employees and clients.

   COMMITMENT TO CONTINUOUS IMPROVEMENT

   The company adopts a proactive approach to innovation, continuously revising and updating their pest management practices. This includes:

   Keeping pace with technological advancements and incorporating new techniques into their operations.

   Regularly reviewing their certifications and standards to ensure compliance and adapt to evolving industry needs.

   In summary, Exterminators PLC stands out in the pest management industry through its impressive array of

   certifications, commitment to international best practices, focus on environmental sustainability, and dedication to employee safety and continuous improvement. This multifaceted approach enables them to deliver high-quality, safe, and effective pest management solutions while maintaining strong ethical and environmental standards.

   
   
   

   OUR JOURNEY

   2025

   In 2024, Exterminators PLC embarked on a transformative journey marked by strategic partnerships and innovative advancements in pest management technology.

   • The company forged a pivotal alliance with PestScan B.V., based in the Netherlands, to represent its AI-powered digital platform across Asia. This collaboration aimed to leverage sophisticated data analytic and machine learning, enhancing pest control solutions tailored to regional challenges.

   • Exterminators PLC partnered with Futura GmbH from Germany to introduce its cutting-edge AI-driven remote sensing technology for rodent management in the Asian market. This initiative not only expanded Exterminators PLC's technological offerings but also reinforced its commitment

   to sustainable and efficient pest management practices.

   2024

   Extensive branch expansion - opening of our 5th branch in Galle.

   Recognised as a Great Place to Work for the third consecutive year.

   2023

   Won 3 awards, won a compliance award, second runner up Entrepreneur Awards winner and Best Enterprise award

   Opened the fifth location in Galle

   Introduced strategic partnership on digital transformation with PestScan Netherlands and Sentario UK Limited

   GPTW Certified for the 3rd consecutive year

   Became a member of the Global Pest Management Coalition

   2022

   Migrated to the 'Diri Savi Board' eight months upon listing on CSE.

   Listed on the 'Empower Board' of the Colombo Stock Exchange

   Ventured into agriculture by setting up an "Agri Store'.

   Opened a new branch in Dambulla.

   Introduced novel energy-saving fly control technology.

   • In recognition of its formidable contributions to the industry, the company proudly won the 68th Award at the Sri Lanka Entrepreneur Awards, organized by NEDA and the National Chamber of Commerce in Sri Lanka. This accolade underscored its reputation for innovation and excellence.

   • Furthering its commitment to environmentally responsible practices, Exterminators PLC designed and articulated the PestMac digital environmentally friendly system. This system effectively mitigates ecological impacts while balancing the essential trade-offs between people, the planet, and profit, positioning the company as a leader in sustainable pest management solutions in the region.

     Opened an "Innovation Centre" in a 5000+ sq. ft. premises in Malabe.

     Winner of Industrial Excellence and Compliance Awards

     Manufactured 'Smart Missile' utilizing empty chemical cans.

     2021

     Asia's 1st 'Great Place to Work' certified pest management brand

     Winner of 10 awards for brand, business, industrial excellence and entrepreneurship

     Winner of 2 international awards for environmental and community leadership

     South Asia's 1st pest management Company to introduce E-Connect customer web portal

     2020

     World's 1st 'Carbon Neutral' sanitation and disinfection brand

     Sri Lanka's 1st licensed sanitation and disinfection service brand

     One of the global pioneers in providing COVID-19 disinfection services

     Sri Lanka's 1st ISO 9001, ISO 14001, ISO 45001, ISO 22000 certified sanitation and disinfection service brand

   • Strategic partnership with PestScan

     B.V Netherlands in representation its AI powered digital platform in Asia

   • Strategic partnership with Futura, GmBH, Germany in representing its AI powered digital remote sensoring rodent management technology in Asia.

   • Won the 68th award at Sri Lanka Entrepreneur Awards organized by NEDA & National Chamber of Commerce in Sri Lanka.

   • Desigined invented and articulated PestMac digital environmentally system which mitigates environmental while balancing the trade-offs bewteen people plant and profit.

Sri Lanka's 1st COVID-19 SLS certified sanitation and disinfection brand

2019

Green World Ambassador - recognized by Green Organization (UK)

Winner of the Gold award for environmental leadership at the 'Green World Awards 2019'

Finalist at International EDIE Sustainability Leadership Awards 2019

2018

ISO 22000 Food and Safety Management System certified

Recipient of an international award for environmental leadership and best practices

South Asia's 1st pest management Company to introduce digital pest management technology

Carbon neutral certified for the 5th consecutive year

Upgraded to ISO 14001;2015 environmental management system

Pest Analysis Critical Control Points (PACCP Model) evolves to enhance pest management standards

Invented the 'SUBWAY' world's 1st on-ground termite station

Became a member of the 'British Pest Control Association'

2017

Setup business internationally 'Exterminators U.K. Limited'

Upgraded to ISO 9001: 2008 quality management standards

Reduced 'Carbon Emissions' by 20%

2016

Setup the new corporate office in the Colombo city

Provided environmental leadership by stopping outdoor thermal fogging services against mosquitoes

Displayed 'Exterminators Inventions' in international trade shows in India

Became the 7-time champion SME Brand in Sri Lanka

Winner of 6 awards for brand, business, industrial excellence and entrepreneurship

2015

Smart Missile termite station invented by Exterminators is certified as the world's 1st carbon neutral termite station

Green-Guard - Invented and submitted application for the patent

Displayed 'Exterminators Inventions' in international trade shows in Dubai & Maldives

Reinvented the 'Smart Guard' termiticide replenishment system

Incorporated Exterminators INTL (Pvt) Ltd

Winner of 6 awards for brand, business, industrial excellence and entrepreneurship

Reduced greenhouse gas emissions by 36%

2014

Asia's 1st 'Carbon Neutral' certified pest management brand

Invented and launched South Asia's 1st pest management mobile app (PestMac)

Winner of 6 awards for brand, business, industrial excellence and entrepreneurship

2013

Provided environment leadership by stopping the bee control services

Winner of 6 awards for brand, business, industrial excellence and entrepreneurship

2012

Winner 6 awards for brand, business, industrial excellence and entrepreneurship

Setup 'Pest-Shop' showroom in Colombo city

2011

Designed and invented the 'Smart Guard' termiticide replenishment system

Regulated under the new pest control regulations

Introduced the world's most advance termite detector invented in Australia for the first time in Sri Lanka (Termatrac T3i radar/thermal/moisture scanner)

Winner of 5 awards for brand, business, industrial excellence and entrepreneurship

2010

Sri Lanka's 1st OHSAS 18001 occupational health and safety certified pest management brand

Invented and manufactured South Asia's 1s termite station (Smart Missile)

Winner of 6 awards for brand, business, industrial excellence and entrepreneurship

Strategic international partnership with PELSIS-Group (UK)

Introduced electric flying insect control technology

2009

Sri Lanka's 1st IS0 14OO1: 2004 environmental management system certified pest control Company

Winner of 2 awards for entrepreneurship

2008

Sri Lanka's 1st ISO 9001: 2001 quality management system certified pest management Company

2007

AQIS-Australia accredited fumigators Opening of new branch in Kandy

2005

Underwent pest management training at Warwick University - UK and received the Diploma in Pest Control organized by the Royal Society for the Promotion of Health UK & the British Pest Control Association - 1st in South & East Asia

Became a member of the Singapore Pest Management Association

Exterminators voluntarily stopped using 'organophosphate pesticide 'Chlorpyrifos' (CPS) insecticide/ termiticide for all pests in 2005

2004

Status change of the Company to The Exterminators (Pvt) Ltd

Became a member of the National Pest Management Association - USA

PERFORMANCE HIGHLIGHTS

REVENUE

OPERATING PROFIT

NET PROFIT

PROFIT BEFORE TAX

EARNINGS PER SHARE

NET ASSETS PER SHARE

OUR CONTRIBUTION TO

THE PROGRESS OF SRI LANKA

OUR SOCIO-ECONOMIC CONTRIBUTION

TAXES PAID TO THE GOVERNMENT

With a successful run of business in the financial year under review, Exterminators PLC has been successful in generating enhanced revenue through its local and global operations. Through this, the company to contribute positively to the nation, in the form of taxes and other levies. As responsible corporate citizen, the company has been conscious of its payment of all regulatory dues. As the business recovered from the economic crisis caused by the pandemic, the tax contribution has doubled with each passing year signifying steady and impressive growth in revenue.

202122 202223 202324 202425

EMPLOYMENT OPPORTUNITIES CREATED ACROSS THE COUNTRY

The growing volumes of business was made possible through attracting and retaining the best talent. Through expansion and innovation, many new employment opportunities were created. The Company offers competitive remuneration packages in par with

industry standards, that are mutually beneficial to the employer and employee alike. It also offers many other benefits extended to employees and their families to ensure financial stability and elevate the quality of living. As our presence is marked by offices in multiple locations across the country, we have been able to expand our impact beyond Colombo. Geographical distribution of employees is as follows:

PROTECTING SHAREHOLDER INTERESTS AS A LISTED COMPANY

Exterminators PLC started small. It was a family-owned business that had no major market share or leverage. They worked their way to the top through determination and hard work, and in April 2022, were able to join the stock exchange as a

Exterminators PLC plays a role in supporting national economic activity by ensuring pest-free environments for businesses and households. By helping customers maintain operational continuity, we support productivity in key sectors such as tourism, agriculture, manufacturing, and retail. Our services contribute to public health by reducing the spread of diseases carried by pests, protecting food safety, and safeguarding infrastructure.

These outcomes help strengthen both economic growth and community wellbeing.

listed company which is an achievement that allows Exterminators PLC to provide continuous value to those who place their trust in them. As the business continues to grow and expand, the value of the stocks and the returns paid to shareholders have been a crucial contribution to socioeconomic growth.

Province No. of

employees (2023/24)

No. of employees (2024/25)

PROVIDING ESSENTIAL PEST PROTECTION ACROSS MULTIPLE SECTORS

Exterminators PLC helps improve community living standards by reducing health risks from harmful pests and microbes. Our services also protect buildings from pest damage and prevent food contamination, contributing to both economic stability and public health. We work with key industries including tourism and hospitality, apparel and manufacturing, agriculture and food, retail, offices, and private properties, ensuring safety and hygiene in these sectors.

COMMUNITY EMPOWERMENT

We support the community through a range of initiatives. These include assisting the national dengue eradication program and offering free pest control services to religious institutions, children's care homes, and other community facilities.

ENVIRONMENTAL CONTRIBUTION

We have maintained carbon-neutral status for seven consecutive years. Our pest control solutions are designed to minimize environmental impact. Key achievements include:

World's first Carbon Neutral Disinfection Service

Specialized Anti-Microbial Disinfection

World's first Carbon Neutral Termite Station, certified in 2015 (offset 1.4 tons GHG emissions)

Asia's first Carbon Neutral Pest Control Services, certified by CCC-UK

A total of 411.1 tons of GHG emissions offset since 2014

EMPOWERING WOMEN

As an equal opportunity employer, we provide job opportunities for women. Our workforce maintains a balanced gender representation.

TECHNOLOGICAL ADVANCEMENT AND INNOVATION

We continue to improve operations through new technology. Artificial Intelligence (AI) is now used to enhance efficiency, accuracy, customer satisfaction, and employee experience, while delivering more value to shareholders.

CHAIRMAN'S MESSAGE

DR KISHU GOMES

CHAIRMAN

"The launch of 14 regional branches through a franchise model was a key strategic milestone, enabling us to expand into rural and semi-urban markets that remain underserved."

DEAR STAKEHOLDERS,

The year under review was a period of transition for Exterminators PLC

, shaped by both challenges and opportunities. We operated within an evolving business environment, with heightened competition, macroeconomic uncertainties, and shifting customer priorities. In the face of these realities, we continued to uphold our purpose of delivering safe, reliable, and sustainable pest management solutions, while laying the foundation for long-term growth.

CONTEXT TO PERFORMANCE

During the year, Exterminators Group recorded a top line increase from LKR 143 million in 2023/24 to LKR 153 million

in 2024/25.However, profitability came under pressure and decreased with profit after tax for the FY 2024/25 with net margins declining by (12.74) million. This was attributable to aggressive competition, rising costs, and muted market response to innovative and eco-

friendly technologies we introduced. While the adoption of sustainable pest control solutions remains gradual, we remain committed to our long-term vision of aligning with environmentally responsible practices.

The performance of the Company must also be viewed against the broader context of Sri Lanka's economic recovery. The construction and hospitality sectors,

two major demand drivers for pest control services are still grappling with the aftermath of the COVID-19 pandemic and the country's economic crisis.

While tourist arrivals have increased and some momentum is evident, businesses in these sectors remain constrained

by immediate priorities such as debt servicing, liquidity pressures, and rebuilding lost revenues. Consequently, demand for pest management services has not yet returned to pre-crisis levels.

Further,the pest control industry in Sri Lanka is undergoing rapid change.

While demand for professional services exists, the industry has become fragmented with new entrants, many lacking the required scientific expertise or regulatory approvals. This creates risks not only for consumers but also for the credibility of the industry. Pest

control is a highly technical and sensitive sector where improper handling of hazardous chemicals can pose grave consequences. Strengthened regulatory enforcement, accreditation, and compliance are therefore essential to safeguard both consumers and the pest control industry.

STRATEGIES AND INDUSTRY POSITIONING

In response, to the evolving competitive and external environment we undertook bold steps to reposition the Company. The launch of 14 regional branches through a franchise model was a key strategic milestone, enabling us to expand into rural and semi-urban markets that remain underserved. This model allows us to grow organically while managing costs and building a scalable presence across the island.

We also strengthened our management team to enhance HR capabilities, leadership, and operational efficiency. At the same time, we took decisive measures to reduce reliance on foreign franchise fees, thereby reallocating resources to more locally relevant innovations and technologies. These

actions position us to compete effectively, even in a market that is highly price-sensitive.

INTEGRATING SUSTAINABILITY

Sustainability lies at the heart of our ethos. We have consistently pioneered pest control solutions that are safer for people and the environment, even though adoption has been gradual in Sri Lanka. Our governance practices reinforce this commitment, ensuring transparency, accountability, and long-term stakeholder trust.

Equally important, our commitment to global standards contributes to positioning Sri Lanka as a credible,

responsible nation on the international stage. By adhering to sustainability and ethical business practices, Exterminators plays its part in strengthening the country's reputation, which in turn

builds confidence among international partners and investors. Values such as integrity, responsibility, and environmental stewardship are central not just to our business, but to Sri Lanka's broader journey of becoming a globally respected nation.

THE WAY FORWARD

Looking ahead, we see opportunities emerging from the gradual recovery of the hospitality, tourism, and construction sectors. While these industries are still

"By adhering to

sustainability and ethical business practices,

Exterminators plays its part in

strengthening the

country's reputation, which in turn builds confidence among

international partners and investors. "

grappling with the after-effects of the "poly-crisis," we expect meaningful recovery momentum from 2026 onwards. This recovery will open new opportunities for pest management as businesses allocate resources to protect their assets and elevate service standards.

Exterminators is well positioned to capture this resurgence, but success will depend on our ability to align with market needs. We must carefully gauge demand for different technologies and solutions while identifying the ideal price points to remain competitive. Balancing global innovations with locally relevant, cost-effective approaches will be critical. As we expand through our franchise network and build scale, our focus will

be on profitability, operational excellence, and strengthening customer trust.

Exterminators will continue to advocate for higher professional standards while embracing global best practices. As an industry leader, we believe our role goes

CHAIRMAN'S MESSAGE

beyond business, it extends to building trust in the pest control services arena and ensuring Sri Lanka earns credibility as a country that complies with global norms and standards.

APPRECIATIONS

On behalf of the Board, I wish to acknowledge the resilience and dedication of our employees, whose commitment has carried us through this challenging period. I thank our business partners for their trust, our customers for their loyalty, and our shareholders for their continued confidence in our vision. I also appreciate the efforts of regulatory authorities to uplift industry standards, which are essential for the credibility and safety of this sector. I take this opportunity to place my sincere appreciation to fellow board members for their strategic guidance.

Together, we remain committed to building a stronger, more sustainable Exterminators PLC one that not only creates value for its stakeholders but also contributes to positioning Sri Lanka as

a globally respected nation founded on values and standards.

Dr Kishu Gomes Chairman Exterminators PLC

24.09.2025

MANAGING DIRECTOR'S

REVIEW

MARLON FERREIRA

MANAGING DIRECTOR

"Expanding into new industries and introducing advanced pest management solutions allowed us to broaden our

footprint and reduce dependency on any single sector."

DEAR STAKEHOLDERS,

The year under review was one of both challenge and opportunity for Exterminators PLC. As we reflect on 2024/25, I am proud of the resilience, innovation, and determination that

defined our journey. Despite operating in a difficult economic climate marked by

uncertainty and the growing trend of talent migration, our team rose to the occasion with unwavering commitment. Together, we turned challenges into opportunities, steering the company towards growth, sustainability, and industry leadership.

TURNING CHALLENGES INTO TRANSFORMATION

Exterminators Group in FY 2024/25 recorded revenue of LKR 10.6 million, which is 7.4% growth, supported by diversification into new markets and innovative service offerings. Although the

net profitability decreased significantly during this financial year, we have set up the foundation to enhance both the

topline and bottom line by restructuring the business and operations process of the organisation to generate sustainable value for shareholders despite the prevailing economic challenges.

We also pursued diversification to mitigate the volatility of traditional markets.

Expanding into new industries and introducing advanced pest management solutions allowed us to broaden our footprint and reduce dependency on any single sector. In parallel, our focus on operational efficiency ensured that every resource was optimised without compromising quality. The results of these strategies were reflected in a

solid improvement in both revenue and profitability, further strengthening our financial position.

MANAGING DIRECTOR'S REVIEW

"Our digital

transformation

agenda accelerated significantly, with

artificial intelligence and automation

redefining the way we deliver

pest management solutions. "

The exodus of skilled talent from Sri Lanka was a reality that tested our operations and compelled us to rethink how we attract, retain, and develop our people.

Rather than view this as a setback, we used it as a catalyst for transformation. We sharpened our strategies around innovation, diversification, and operational efficiency, ensuring that Exterminators

not only navigated the present but also prepared for the future.

BUILDING A CULTURE OF INNOVATION AND RESPONSIBILITY

Our digital transformation agenda accelerated significantly, with artificial intelligence and automation redefining the way we deliver pest management solutions. By embedding technology into

our operations, we streamlined processes, enhanced customer experiences, and strengthened service reliability. This technological edge has positioned us as a pioneer in AI-driven pest management in Sri Lanka and beyond.

Beyond financial growth, we continued to nurture a culture of innovation and responsibility. At Exterminators, we believe that people, profit, and the planet must exist in harmony. Our team was encouraged to think creatively, challenge conventions, and pioneer sustainable

practices that set new industry standards. This commitment was validated as we became Asia's first publicly listed, Great Place to Work-certified, and carbon-neutral pest management company-a milestone that underscores our leadership in sustainability.

RECOGNITION FOR EXCELLENCE

Recognition followed our efforts, with the company winning 33 awards for

entrepreneurship during the year, including being named the runner-up for Best Entrepreneur of the Year at the 2025

Sri Lanka Entrepreneur Awards. Our innovative approach during the COVID-19 pandemic was even featured in a case study by the Asian Development Bank, reflecting our ability to adapt with agility and resilience in the face of disruption.

STRONG GOVERNANCE AS A FOUNDATION FOR GROWTH

Strong governance has been central to sustaining this momentum. Our diverse Board of Directors brings a wealth of expertise across industries, ensuring balanced decision-making and accountability. Ethical conduct is

embedded into our operations through a robust code of conduct, risk management framework, and transparent reporting practices. From whistleblower protection mechanisms to independent audits, every measure is designed to reinforce integrity, transparency, and trust.

A FUTURE OF POSSIBILITIES

Looking to the future, we see an industry rapidly evolving under the influence of digital technologies, shifting customer expectations, and growing sustainability imperatives. With our proven track record of pioneering innovation, Exterminators

is well-positioned to harness these trends. We will continue to explore new technologies, invest in people development, and expand into new

markets, while staying true to our purpose of harmonising the needs of people, profit, and the planet.

APPRECIATION

I take this opportunity to thank our employees, customers, partners, and shareholders for their trust and dedication. It is your belief in Exterminators that fuels our success. As we step into the next chapter, I am confident that together we will scale even greater heights, reaffirming our position as the region's leading and most trusted name in sustainable pest management.

Marlon Ferreira

Managing Director 24.09.2025

Exterminators PLC | Annual Report 2024/25 21

WE CREATE SUSTAINABLE VALUE BY DELIVERING INNOVATIVE SOLUTIONS, EMPOWERING COMMUNITIES, AND BUILDING LASTING RELATIONSHIPS WITH ALL

STAKEHOLDERS.

CREATING VALUE

OUR BUSINESS MODEL

INPUTS

TRANSFORMING VALUE

FINANCIAL CAPITAL

Debt

Rs. 15.11 Mn

Equity

Rs. 111 Mn

VIsIon

TO BE THE CHAMPION IN

MANUFACTURED

⬥ Cutting-edge tools,

WHAT WE DO.

CAPITAL

methods and technologies

⬥ 02 branches

⬥ Innovation center

Local

Strategic Objectives

Global

INTELLECTUAL CAPITAL

business

business

HUMAN CAPITAL

⬥ Over two decades of industry expertise.

⬥ Research and development capabilities

⬥ 03 product innovations

⬥ 07 service innovations

⬥ 03 National and International Awards

⬥ Team of highly-skilled and experienced professionals

expansion

Business diversification

Product diversification

expansion

Enhancing digital platforms

⬥ 02 Promotions

Core Activities

SOCIAL & RELATIONSHIP

INTERNATIONAL BRANDS

PREVENTIVE PEST MANAGEMENT

TERMITE MANAGEMENT

CAPITAL

NATURAL CAPITAL

�Loyal customer base

⬥ Reliable supplier network

⬥ 10,000 + jobs served in 2024/25

⬥ Energy, water and material used in the business process

⬥ Commitment to biodiversity conservation

⬥ Invented and manufactured smart missiles utilising empty chemical cans

PEST MANAGEMENT

MOSQUITO MANAGEMENT

Corporate governance Risk management

Operating context

SANITATION AND DISINFECTION

OUT COME

Financial capital

Profit before tax Rs. (11.8) Mn increased by (231%)

Earnings per share Rs. (0.22) increased by (229%)

Manufactured capital

Increase in sales - 7.4%

Increase in Service revenue 6.7%

Increase in Cost of sales 37.1%

IMPACT

Investors

Investors

Intellectual capital

Product Innovations - 03

Service Innovations - 07

03 national and international awards

Human capital

Payment to employees - Rs. 76.9 Mn

02 promotions offered

Investors

Customers

Employees

Employees

Social and relationship capital

10,000+ Jobs served in 2024/25

Spent on CSR - Rs. 0.36 Mn

Taxes - Rs. 13.4 Mn

Natural capital

Manufactured smart missiles utilising empty chemical cans as raw materials

Customers Community

Environment

STRATEGY AND RESOURCE ALLOCATION

STRATEGY EXECUTION

We give equal focus to planning and execution. Dedicated resources are assigned to carry out the strategy, with regular reviews to track progress against targets, identify any shortfalls, and take

corrective action. The annual budget and planning process is the main way the

long-term strategy is put into action. Plans and budgets are shared with all operational teams at the start of the financial year

and reviewed regularly to measure results

against goals. If needed, resources are reallocated to keep targets on track.

Our process also allows for tactical adjustments to respond to changes in the internal or external environment.

VISION

MISSION

VALUES

INPUT

RISK MANAGEMENT

Identification Assessment Mitigation

Review and Monitoring

Internal

Strengths and Weaknesses

External

Opportunities and Threats

Leadership

direction

STRATEGY

FORMULATION

Material Issues

STRATEGY EXECUTION

Long-term Plan / Annual Business Plan

A holistic risk management approach ensures that risks are identified and mitigated at all stages of the process.

RESOURCE ALLOCATION STRATEGY

OPERATING CONTEXT

-4.20

-4.00

-2.60

-2.10

-1.70

-0.8

-0.50

0.50

0.90

1.70

5.0

2.40

1.50

3

2

1

0

-1

-2

-3

-4

-5

Inflation - Headline - CCPI %

Inflation - Headline - CCPI

GLOBAL CONTEXT

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan-25

Feb-25

Mar-25

The global economy in 2024 faced headwinds from geopolitical tensions, supply constraints, and energy price shifts. Central banks tightened policies to curb inflation, resulting in higher borrowing costs and reduced consumer spending.

Still, global growth held up at around 3% in 2024, supported by fiscal stimulus and higher labor participation.

PEST CONTROL INDUSTRY

Demand for pest control continued to grow with rising health awareness, urbanization, and the need for safer environments.

Technological innovations-including AI, mobile tools, and digital booking platforms-are further improving service efficiency and effectiveness.

LOCAL CONTEXT (SRI LANKA)

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan-25

Feb-25

Mar-25

Sri Lanka's economy rebounded with 5% real GDP growth in 2024, marking the strongest performance in seven years. In the first quarter of 2025, growth remained solid at 4.8%, though slightly below last year's Q1 growth of 5.1%.

292 292

296

294

297

296

300

299

301

301

304 304

304

302

300

298

296

294

292

290

288

286

284

USD/LKR

Exchange rate

Exchange rate movement

306

Foreign exchange conditions improved, marked by recovering tourist earnings, remittances, and export flows. The current account posted monthly surpluses in the first half of 2025, restoring external sector stability.

Inflation continued to stay below zero. In February 2025, CPI recorded -4.2%, largely due to a 20% cut in electricity tariffs. Deflation persisted through end-2024, mainly from lower fuel and utility

prices. Total inflation is expected to return to positive territory by mid-2025, aiming eventually for the 5% target.

In November 2024, CBSL introduced a single Overnight Policy Rate (OPR) of 8%, replacing the previous dual-rate system, to streamline monetary policy and support recovery. The rate remained unchanged into early 2025.

INDUSTRY OUTLOOK AND REGULATIONS

Pest control services in Sri Lanka operate under tight regulation through the Control of Pesticides Act, with mandatory licensing from the Registrar of Pesticides. Regulatory compliance ensures public and worker safety.

CLIMATE AND SUSTAINABILITY TRENDS

Environmental awareness is rising. Customers and regulators are increasingly demanding Integrated Pest Management (IPM)-combining biological, mechanical, and minimized chemical methods. Firms offering sustainable solutions are well-positioned to meet these expectations.

OUR RESPONSE

We align services to global industry trends and Sri Lanka's improving macroeconomic climate. Our focus includes:

Expanding service adoption across growing urban and commercial segments.

Investing in digital tools (mobile apps, portals, GPS tracking) to improve efficiency.

Innovating eco-friendly products-like our SMART MISSILE carbon-neutral termite station-to meet rising environmental standards.

LEADING THE WAY

IN OUR BUSINESS SEGMENTS

LEADING THE WAY

THE COMPANY PARTNERS WITH UK-BASED NETWORK BIRD MANAGEMENT, A GLOBAL LEADER IN BIRD CONTROL SOLUTIONS, TO BRING CUTTING-EDGE, RELIABLE, AND PROFESSIONAL-GRADE PRODUCTS TO THE PEST CONTROL INDUSTRY. WITH A FOCUS

ON QUALITY, INNOVATION, AND EXPERT SUPPORT, NETWORK BIRD MANAGEMENT ENSURES EFFECTIVE AND SUSTAINABLE SOLUTIONS TO MANAGE BIRD-RELATED CHALLENGES WHILE MAINTAINING THE AESTHETICS AND SAFETY OF BUILDINGS.

LEADING THE WAY

TERMITES ARE AMONG THE MOST DESTRUCTIVE PESTS, CAPABLE OF SILENTLY DAMAGING HOMES, BUSINESSES, AND INFRASTRUCTURE. LEFT UNDETECTED, THEY CAN CAUSE STRUCTURAL INSTABILITY AND FINANCIAL LOSSES THAT ARE DIFFICULT TO RECOVER FROM. RECOGNIZING THIS CRITICAL CHALLENGE, EXTERMINATORS PLC HAS DEVELOPED A SUITE OF INNOVATIVE TERMITE MANAGEMENT SYSTEMS THAT COMBINE SCIENCE, TECHNOLOGY, AND SUSTAINABILITY.

The flagship Titanium Termite Management System provides a structured, multidisciplinary approach that integrates environmental responsibility with effective

protection. Alongside it, the Smart Missile Termite Bait System introduces intelligent monitoring and precision baiting, ensuring early detection and targeted colony

elimination. Meanwhile, Smart Guard, originally developed for Sri Lanka's tropical conditions, offers one of the world's most rugged and long-lasting replenishment

LEADING THE WAY

IN OUR BUSINESS SEGMENTS

systems, delivering up to 50 years of uninterrupted protection.

Together, these systems represent a proactive, eco-conscious, and cost-effective approach to termite

management. They are designed not only to address infestations but also

to prevent future risks, ensuring peace of mind for homeowners and business managers alike. By

combining advanced technology with flexible service models, Exterminators PLC empowers clients to safeguard their properties while contributing to environmental sustainability.

LEADING THE WAY

THE MOZZIMAC MOSQUITO MANAGEMENT SYSTEM IS A BREAKTHROUGH IN MODERN PEST CONTROL, COMBINING CUTTING-EDGE TECHNOLOGY

WITH A STRONG COMMITMENT TO SAFETY AND ENVIRONMENTAL SUSTAINABILITY. DESIGNED FOR BOTH RESIDENTIAL AND COMMERCIAL SETTINGS, IT DELIVERS HIGHLY EFFECTIVE MOSQUITO

MANAGEMENT WHILE REDUCING ECOLOGICAL IMPACT AND ENSURING LONG-TERM PROTECTION.