AGL Energy Limited

Thank you for standing by and welcome to the AGL Energy full-year results briefing conference call. All participants will be in listen-only mode. There will be a presentation followed by a question and answer session. I would now like to hand over the conference to Managing Director and Chief Executive Officer, Mr Damien Nix. Please go ahead.

Good morning, everyone. Thank you for joining us for the webcast of AGL's full-year results for the financial year 2025. I'd like to begin by acknowledging the traditional owners of the land I'm on today, the Gadigal people of the Aurora Nation, and pay my respects to their Elders past, present and emerging. I'd also like to acknowledge the traditional owners of the various lands from which you are all joining. Today I'm joined by Gary Brown, Chief Financial Officer, Joe Egan, Chief Customer Officer and Marcus Brockoff, Chief Operating Officer. I'll get us started and we'll have time for questions at the end. This slide provides a good overview of the four key themes which Gary and I will cover today. Firstly, our strategic execution in FY25, with approximately $900 million deployed towards battery developments and strategic investments. CER and our demand-side flexibility portfolio advanced through the acquisition of South Australia's virtual power plant from Tesla in July, and excellent progress made on grid-scale battery developments. We've reached a final investment decision on the 500 megawatt Tomago battery, and encouragingly, the 500 megawatt Liddell battery remains on track for commencement of operations in early 2026. AGL also delivered strong results for the year, in line with guidance, which I'll cover shortly. Importantly, we continue to deliver for our customers. Amidst a year of heightened market activity, we increased our already strong customer satisfaction and continue to provide our customers with great products and services. Our customer markets business recorded good growth in overall customer services, primarily led by growth in telecommunications and Netflix customer services, with energy customer services marginally higher. Our customer satisfaction continues to remain very strong at 81.6. Strategic MPS has doubled to a score of plus eight, and we've maintained healthy spread to market churn of 4.3 percentage points. In July, we also launched AGL Community Power, sharing the benefits of the energy transition, including with customers who may not be able to directly access the benefits of solar and residential batteries. Importantly, our investment in our flexible portfolio mitigated the earnings impact of the lower fleet availability in FY25, which was impacted by an additional major plan unit outage compared to the prior year, coupled with some unplanned outages in the second half. We're targeting a stronger performance in FY26 as we continue to invest in the long-term availability and reliability of our thermal fleet, and I'll speak to this in more detail. Encouragingly, despite lower availability, volatility captured through trading was almost two percentage points higher, with a further improvement expected in FY26 in line with stronger targeted fleet performance. We continue to invest in growth and the future of our business, particularly in flexible asset fleet capacity. I'll speak to how we're unlocking value through multi-asset orchestration and how we continue to capture a disproportionate share of the rapidly growing EV market and broader portfolio benefits this represents to AGL, particularly the ability to orchestrate EV battery load in the future. As I touched on, we're making excellent strides in progressing our grid-scale battery investments, and we've also strengthened our long-duration firming optionality through the acquisition of two early-stage pumped hydro projects in the Upper Hunter region. Turning now to our strong financial results, which are in line with guidance. As we'd previously announced, we expected a decrease in earnings compared to FY24 due to lower wholesale electricity prices resetting through our contract positions. consumer margin compression following a period of heightened market activity, as well as our FY25 pricing decision to not fully pass through the year-on-year cost increases to customers to help with customer affordability. Additionally, increased depreciation and amortisation was driven by the continued strategic investment in our thermal fleet and the first full year of operations of the Torrens Island battery. This was reflected in our reduction in EBITDA and underlying net profit after tax compared to FY24. We also saw the breadth of our flexible asset portfolio help mitigate the earnings impact of outages in our thermal plants, particularly in the second half of the year, coupled with strong performance from the Torrens Island and Broken Hill batteries. Higher income tax paid, coupled with our prudent investment in sustaining CapEx, resulted in lower operating free cash flow. However, we continue to maintain a strong level of cash conversion. You'll also see that we reported a statutory loss for this year, attributable to the key drivers noted on this screen, which Gary will explain in more detail. A final ordinary dividend of $0.25 per share has been declared, fully franked. bringing the total fully franked dividend for the 2025 financial year to $0.48 per share, which equates to a 50% payout ratio for the full year. We also provided our FY26 financial guidance, which I'll discuss at the end of the presentation. Looking forward, as Gary and I will discuss, we aim to more than offset any earnings impact of coal and gas re-contracting with earnings from our significant investment in flexible assets and the broader delivery of our strategy. Moving now to safety, customer and employee metrics. I'm pleased to report we've continued the momentum from our half-year results and recorded a material improvement of our total injury frequency rate, down to two per million hours worked. driven by our acute and relentless focus on preventing injuries across the organisation, which has included numerous safety awareness campaigns and targeted workshops. This is certainly an encouraging result. However, we must continue to strive to further improve this metric. I've already spoken to our customer satisfaction and strategic MPS scores, and our employee engagement score has improved to 73% as we continue to see great engagement and momentum across the business. We're proud to be delivering real impact for our customers, community and First Nations people. And on the screen, you can see some key achievements for the year. We've delivered our two-year $90 million customer support package, which included $76 million of payment matching and debt relief. Key learnings of the program have been embedded into everyday operations. I've already spoken to the launch of AGL Community Power, And we also recently announced that we'll be partnering with the South Australian Government to build and operate 16 community batteries. We've also invested $6 million in the communities in which we operate, including the provision of EV subscriptions and charging units for OzHarvest and the Kanaikanae Land and Water Aboriginal Corporation. And as part of our commitments in our Reconciliation Action Plan, we've purchased more than $13 million in goods and services from First Nations-owned businesses, exceeding a two-year Reconciliation Action Plan target. Today, we're also pleased to present our 2025 Climate Transition Action Plan, or CTAP, which demonstrates a commitment and progress towards achieving our decarbonisation strategy. I won't speak to this in too much detail, as we'll have a separate briefing session to the market next week. But essentially, we've bolstered our interim Scope 1 and 2 emissions reduction targets, prioritising direct emissions reductions, and set a new ambition to reduce our Scope 3 emissions by 60% compared to FY19 levels, following the closure of our cold-fire power stations. Importantly, we're on track to add 12 gigawatts of new renewable and firming capacity by the end of 2035, and have built on our ambitions since the inaugural CTAP, increasing our interim target from 5 to 6 gigawatts by FY30, of which we're targeting at least 3 gigawatts of grid-scar batteries. We are cementing our position as a responsible leader of Australia's energy transition and invite our shareholders to support the decarbonisation commitments outlined in the CTAP via the stay on climate resolution at our upcoming 2025 Annual General Meeting. I'll now spend a few minutes talking to the continued transition of AGL, including a considerable strategic execution over the past three years since a refreshed strategy was announced in September 2022 before handing over to Gary. First, just a recap of our two primary strategic objectives, connecting every customer to a sustainable future and transitioning our energy portfolio. This slide shows a great depiction of our considerable strategic execution over the past three years. I won't speak to all of these, but will highlight the key themes and announcements. We've made great progress in our ambition to connect every customer to a sustainable future, headlined by the material expansion of our suite of EV plans, propositions and partnerships, launch of Electrify Now platform in 2023, execution of renewable link PPAs and our strategic partnership and equity investment in Kalooza, and more recently, the launch of AGL Community Power. The transition of our energy portfolio has been headlined by the material advancement of our development pipeline and focused execution on our growing grid-scale battery portfolio, including the FID we recently made on the Tomago battery. Our 300 megawatts of operational batteries are performing well, and we have 1,000 megawatts of batteries under construction and a clear pathway to FID for a further 900 megawatts of grid-scale batteries. Turning now to our FY27 strategic targets, we have made strong progress. Starting on the left-hand side, I've already spoken to our strategic NPS score, which is in a great position, and we've almost reached our digital-only customers target, with our app continuing to be the highest-rated energy app in the market. Encouragingly, our cumulative customer assets installed metric has more than doubled over the year, and we've now exceeded our green revenue target. Turning to the right-hand side, we are targeting higher EAF in FY26 and continuing to drive improvements to step this up to 88% target over the coming years. Additionally, decentralised assets under orchestration are 20% higher at almost 1.5 gigawatts, a great result. Crucially, our investment in targeted M&A over the past three years has supported the delivery of our strategy. This slide contains seven key deals which I'd like to highlight. On the customer front, the acquisition of South Australia's virtual power plant from Tesla has advanced at demand-side flexibility and grown at decentralised assets under orchestration by almost 35 megawatts. A strategic partnership and 20% equity investment in Colusa is core to the delivery of the Retail Transformation Programme, and the acquisition of Everty has broadened our capabilities in EV charging and energy management solutions in a rapidly growing EV market. We also recently announced the acquisition of Ampol's Energy Retail Customer Book, with approximately 50,000 customers across New South Wales and Queensland joining AGL in FY26. Turning to the transition of our energy portfolio, where we've strengthened our optionality and firming and storage capacity through the acquisition of firm power and terrain solar, and more recently, strengthened optionality and long-duration firming capacity through the acquisition of two early-stage Upper Hunter pumped hydro and wind projects. And finally, our joint venture with Sameva Renewables for the development for the Pottinger Energy Park, which includes a proposed 830 megawatt wind farm and 400 megawatt battery, is a prime example of how we're actively partnering to accelerate renewable asset developments. I want to spend a few more moments speaking to the transition of our energy portfolio. We've made great progress over the past three years, driven by the advancement of our development pipeline and material growth in our flexible asset fleet. Our development pipeline of 9.6 gigawatts has more than tripled in size since we announced the inaugural CTAP in 2022, supported by the acquisition of Firm Power and Terrain Solar last August. Additionally, we have 9 gigawatts of early stage opportunities. Overall, we are very well positioned with the size, maturity and the quality of our development pipeline. The focus remains on the continued timely execution of projects of the highest portfolio value, with the near-term priority on accelerating the development of our grid-scale battery portfolio. On the right-hand side, you can see that we're making great progress towards our expanded 6 gigawatt target of new firming and renewable projects by FY30, with 1.68 gigawatts of projects in operation, under construction or contracted, as well as a clear pathway to FID for a further 900 megawatts of battery projects. Crucially, our flexible asset fleet has grown to 8.3 gigawatts, including 3.2 gigawatts of cold-fire unit flexibility, enabling AGL to curtail generation during the daytime periods of low or negative pool pricing. Importantly, this spread across a diverse range of asset types. Our growing grid-scale battery and virtual power plant assets can respond to peak customer demand events in seconds, whilst our hydro and gas peaker assets can start up and generate electricity in a couple of minutes. Turning now to an update on how we continue to deliver for our customers in FY25. Our customer market's performance in FY25 was headlined by sustained growth in the customer base and continued strong customer satisfaction in a competitive market. Total services to customers increased by 78,000, driven by growth in telecommunications and Netflix services, with a marginal increase in energy services. Importantly, we've maintained strong customer metrics, including our leading energy brand, digital offering and loyal customer base, with a favourable churn spread to rest of market of 4.3 percentage points, a pleasing result in a competitive market. On the right-hand side, as we previously flagged, you can see the decrease in consumer customer gross margin. However, this is now stabilised and is expected to improve in FY26. Pivotal to the delivery of our CAR strategy is unlocking value through multi-asset orchestration, delivering benefits to AGL and its customers. On the left-hand side, you can see five key components of our multi-asset BPP. Firstly, residential batteries enable rapid response load shifting that benefits the networks, our customers and AGL. I've spoken in the past how we can orchestrate hot water systems to solar soak and optimise load profile management. Importantly, we are capturing value from the opportunity to orchestrate ever-increasing flexible load of EV batteries through smart charging and enabling vehicle-to-grid integration. Added to this is our EV Night Saver Plan, empowering customers to optimise their assets and consumption through AGL initiative signals and incentives. And finally, Demand response, and in particular, peak energy rewards program, is driving shared value by encouraging and rewarding customers to shift or reduce load during peak periods. And on the right-hand side, you can see the clear year-on-year momentum that helped drive a 20% increase in decentralised assets under orchestration to 1.5 gigawatts, with material increases in our customers who have a demand-side flexibility product are on peak energy rewards program, or have their customer-controlled hot water load orchestrated by AGL. We continue to make good progress on building a future-ready business through the Retail Transformation Program. We've deployed our first technical releases, including the introduction of Salesforce and Kaluza, and we've made a range of operating model changes which are already delivering benefits. As with any large and complex customer transformation program, we continue to evolve and enhance our delivery and planning approach. Pleasingly, as you can see on the left-hand side, Colusa has announced key updates, headlined by its expansion in the Australian market through the acquisition of Bage Technologies and internationally through strategic partnerships with Mitsubishi and PG&E in North America. Within OVO Energy Australia, Colusa Retail and Flex Solutions are delivering an excellent MPS score of plus 35. OVO Energy Australia is also leading the market with the EV tariff and smart charging experiences and has seen strong adoption of load-shifting products, like the Free 3 plan, which offers three hours of free energy from 11am to 2pm. And finally, a reminder that the retail transformation is a four-year program, is expected to deliver pre-tax savings of approximately $70 to $90 million from FY29, as previously announced, as well as the targeted digitization, speed to market, and customer experience improvements you can see on the screen. Now to a discussion on the growing flexibility in our portfolio, starting with an overview of fleet performance and operations. After a year of excellent thermal fleet performance in FY24, the commercial availability of our thermal fleet was down 12 percentage points, mainly due to an additional major planned outage compared to the prior year, coupled with unplanned downtime in the second half. Encouragingly, volatility captured through trading increased despite the lower availability result, and we aim for this to further improve in FY26 in line with higher targeted thermal fleet availability. Overall, generation was 1.2 terawatt hours lower, again impacted by lower coal-fired generation, partly offset by the longer running of the gas fleet and a stronger contribution from our renewable generation assets. Looking forward, we are targeting stronger fleet availability for FY26. The decline in EAF was driven by two key factors. First, an additional planned major outage compared to FY24, and second, a rise in unplanned downtime in the second half, largely due to boiler tube leaks and one-off component failures. Please note that the 6.3 percentage point decrease in EAF largely accounted for the 1.2 terawatt hour decline in generation volumes in FY25. In response, we've taken targeted and proactive actions such as the engagement of global and allergy specialists to confirm failure mechanisms and guide targeted tube replacements, improved operating practices and strengthen quality management systems at both Bayswater and Luoyang A. Of note, FY25 EAF performance for both Bayswater and Luoyang A remained above the NEM median. We recognise that we must invest strategically in EAF improvements and we continue to evaluate the balance between cost, risk and performance to meet our asset objectives. Looking ahead, we are targeting higher EAF in FY26 and a continued upward trend in thermal fleet performance. Despite the overall weaker availability performance, our flexible asset fleet continues to capture value in an increasingly volatile energy market. The first graph shows how our growing portfolio of flexible assets has enabled AGL to realise a premium above the average market price for the period. This premium has steadily increased since FY22 with a slight moderation in FY25. Importantly, our continued investment in flexible assets is expected to grow this premium further over time. A key point I'd like to highlight is that our growing portfolio flexibility and in turn our ability to optimise realised pricing outcomes on the supply side is a material contributor to earnings. Considering our significant annual generation volumes of over 30 terawatt hours per annum, The second graph breaks this down by asset type, encouragingly also showing premium we're achieving for our coal-fired generation assets through our investment in unit flexibility. As I've mentioned at the half-year results, and just as importantly, we can observe the premium that hydro, gas and batteries are able to achieve based on being very flexible assets. It is these asset classes that we continue to focus on delivering as we progress through the energy transition. Turning now to how we're investing in growth and the future of our business, beginning with a thematic discussion on future expected electricity demand growth within the NEM. Encouragingly, the tailwinds for future electricity demand growth continue to be positive, with flexible capacity key to unlocking future value. Starting with the graph on the left-hand side, which shows that 2025 has recorded the highest winter daily electricity demand for New South Wales, Queensland and Victoria since 2017. A particular note in 2025, Victoria recorded the highest daily winter demand ever achieved. Moving further to the right, where IEMO predicts significant growth in electricity demand over the next decade, with the major driver of this growth being in the electrification of the home, transportation and broader industry, including data centres. And we continue to see increasing demand for electrification products from our consumer and our large business customers. Added to this is the significant opportunity to orchestrate the ever-increasing flexible load of EV batteries, encouraging of off-peak charging and thereby shifting load to the overnight period through pricing signals, which I'll talk to on the next slide. And the graph on the right-hand side shows the significant amount of grid-scale battery storage, as well as storage through consumer energy resources that are acquired by 2035 as the NEM transitions away from cold-fire generation. At the half-year results, I highlight that we're capturing a disproportionate share of the rapidly-grown EV market. And as you can see on the left-hand side, we've continued to outpace the growth in the number of EVs on the road over the last six months. We have a compelling suite of EV plans, propositions and partnerships, which will form the foundation of future expected growth. And we now have approximately 35,000 EV energy plant customers with excellent NPS score of plus 41, for our EV Night Saver customers. On the right-hand side, you can see the success of incentivising off-peak charging with regards to our EV Night Saver plan, which has seen up to 22% of customers' daily load shifted to the lower tariff overnight window, optimising both pricing and portfolio outcomes for AGL and our customers. We're also leveraging our scale to accelerate growth in the consumer battery portfolio, unlocking value for customers and the market, as well as presenting earnings and supply portfolio benefits to AGL. By delivering an integrated customer experience, we're enabling growth at pace and scale, giving customers greater connection and control to maximise the value of their assets. On the right-hand side, you can see clear value pools that support potential future earnings and portfolio benefits. These include enhanced consumer peak load management through greater demand-side flexibility, with residential batteries able to respond very rapidly to large market demand events. Additionally, we're able to realise an arbitrage spread and avoid the purchase of caps on the orchestrated loads. We also have the potential to access behind-the-minute demand growth through innovative models, and importantly, we observe significantly lower churn rates for our residential VPP customers over the past five years. Our new grid-scale battery projects will further enhance our flexible asset capacity and broader portfolio management. As I mentioned a few moments ago, our grid-scale battery portfolio can respond to peak demand events in seconds, crucial in a transitioning energy market, which is shifting away from baseload thermal generation to variable renewable energy. We'll also continue to leverage our innovative in-house capabilities to optimise the performance of the grid-scale battery assets as part of the integrated portfolio, targeting returns above what a merchant operator would typically achieve. Pleasingly, the Torrens battery has consistently operated at at least 99% availability, demonstrating excellent reliability. Additionally, a sophisticated state of charge coordination delivers peak performance during market volatility events and our advanced analytics across all asset types maximises asset value and operating efficiency. On the right-hand side, you can see our portfolio of operational and contracted and grid-scale batteries, as well as the 1,000 megawatts of battery projects under construction in New South Wales. Finally, denoted in dark blue are the additional 900 megawatts of grid-scale battery projects we have a clear pathway to FID. I'll now hand over to Gary.

Thank you, Damien, and good morning, everyone. This slide shows an overall summary of our financial results, which I'll cover in more detail on the following slides. Overall, our strong financial performance for the year was in line with guidance. As we previously announced, we expected a decrease in earnings compared to FY24 due to lower wholesale electricity prices, resetting through contract positions, consumer margin compression following a period of heightened market activity, as well as our FY25 pricing decision to not fully pass through the year-on-year cost increases to customers to help with customer affordability. Additionally, increased depreciation and amortisation was driven by the continued strategic investment in our thermal fleet and the first full year of operation of the Torrens battery. This was reflected in our reduction in EBITDA and underlying net profit after tax compared to FY24. We also saw the breadth of our flexible asset portfolio help mitigate the impact of outages in our thermal plants, particularly in the second half of the year, coupled with a strong performance from the Torrens Island and Broken Hill batteries. As we committed to, our operating costs were broadly flat. We also announced a fully franked dividend of 25 cents per share, bringing the total dividend for the 2025 financial year to $0.48 per share, fully franked, which equates to a 50% payout ratio for the full year. This is at the bottom of our targeted dividend payout ratio of between 50% and 75% of underlying net profit after tax. As we flagged the FY24 full year results, operating free cash flow was impacted by the one-off impact of $381 million worth of government bill relief credits received in FY24, with the majority of this amount remitted to customer accounts in FY25. We also note that we have invested heavily in growth this year, with approximately $900 million deployed towards battery developments and strategic investments as we press forward with the delivery of our strategy. I will also speak to the strong earnings stream these batteries are expected to deliver once they are operational. This significant cash outlay for growth, combined with the timing of energy bill relief, were two key drivers of the higher net debt of $2.9 billion. Importantly, we maintained our BAA2 investment grade credit rating with headroom to covenants. I'll first take you through group underlying profit in more detail. Starting on the left-hand side, you will see one small non-recurring item attributable to the closure of the Camden Gas Project and divestment of the Surratt Gas Project. Moving further to the right, as we previously flagged, we expected a softer customer market performance, primarily driven by the pricing decision to not fully pass through year-on-year increases to support our customers, which resulted in margin compression across the consumer electricity portfolio. Additionally, margins were impacted as customers switched to lower-priced products, affecting both the consumer gas and electricity portfolios, with consumer gas margins also impacted by lower average demand due to milder weather. It's important to note that we expect an improvement in consumer-customer margin in FY26 and for this to stabilise going forward. This was partially offset by a stronger margin performance by our Perth Energy and telecommunications businesses, coupled with a favourable movement in retail transformation operating expenses and lower net bad debt expense. Integrated Energy's performance was impacted by expected lower wholesale electricity prices resetting through contract positions, with the breadth of our flexible asset portfolio helping to mitigate the earnings impact of outages in our thermal plants. The softer trading and origination gas margin was driven by increased gas costs, resulting from the roll-off of lower-cost legacy supply contracts. Our growing battery portfolio continues to deliver very strong performance, with the $17 million bar for batteries reflecting a full year of operation of the Torrens battery compared to only nine months in the prior year, as well as earnings contribution from the Broken Hill battery, which commenced operations in the second half, This takes our total EBITDA contribution for the operational batteries to $45 million for the year. The higher growth expenditure related to increased development capability as we deliver upon our ambition to add new renewable and firming capacity over the next decade. The bar of the integrated segment relates to increased spend to maintain and improve thermal fleet plant availability, coupled with higher labour costs. Moving further to the right, the increase in central managed expenses is attributed to technology spend driven by additional licensing costs to support the Retail Transformation Program and other initiatives including cyber security. At the FY24 full year results, we indicated an uplift in depreciation and amortisation in FY25 that has come in line with our expectations. This increase was attributable to the investment in our thermal assets and thereby the resulting asset bases of these assets, as well as the full-year depreciation impact of the Torrens Island battery. In addition, we see an increase in the environmental rehabilitation asset relating to the impact of a reduction in the discount rate. And finally, lower income tax paid reflected the marginal decrease in underlying profit before tax. In a period of ongoing inflationary pressures and investment in growth, we are really pleased that we have kept operating costs flat as committed to last August through disciplined cost management, digitisation and automation. As you can see, the impact of inflation was more than offset by significant productivity initiatives implemented across the organisation. We are committed to controlling operating costs in our core business. And in FY26, the impacts of inflation are again expected to be offset by productivity and business optimisation benefits. Looking forward, we expect an increase of approximately 3% in FY26, primarily driven by the growth part of the business as we continue to deliver on our strategy. In addition, we expect a small increase in variable sales costs. Briefly touching on CapEx, as previously indicated, the uptick in thermal sustaining capital was primarily due to the two major plant outages for this year, compared to one in FY24. Just a reminder that over the medium term, sustaining capital spent on our thermal assets is forecasted between $400 and $500 million per annum. This prudent investment is to improve the availability and reliability of our thermal asset fleet, which is critical to the NEM whilst we undergo the transformation of our operating fleet. In line with our strategy, this year's growth expenditure centred on the construction of the Liddell battery, approximately $375 million of the total $750 million forecasted construction cost. FY26 will follow a similar theme as we press ahead with the construction of the Tomago battery. Broadly speaking, FY26 growth capital spend is expected to comprise roughly $185 million for the remaining construction of the Liddell battery, approximately $485 million of the estimated $800 million total construction costs for the Tomago battery, with the bulk of the remaining spend expected in FY27. In addition, our customer markets growth span will focus on further advancing our distributed energy and electrification solutions initiative, being approximately $80 million. This significant investment in growth is the key to unlocking future value for the business, and I'll explain more on the next slide. Looking forward, AGL aims to more than offset any earnings impact of coal and gas re-contracting with earnings from its significant investment in flexible assets such as batteries as well as the broader delivery of our strategy. You can see that our 300 megawatt fleet of operational grid scale batteries are already delivering strong performance and returns and we have 1,000 megawatts of projects which are under construction and expected online in the coming years. The Liddell battery is expected to commence operations in early 2026, and the Tomago battery is expected to commence operations in late 2027, after already reaching feed in July of this calendar year. Please note that the graph shows actual and expected earnings for existing and committed projects only, noting that we have a clear pathway to feed for a further 900 megawatts of grid-scale battery projects, with each project expected to take roughly two to three years to build once it's reached FID. Just a reminder that we are targeting ungeared post-tax asset level returns at the upper end of the 7% to 11% range for our grid scale battery projects. And these assets will be depreciated over 20 years on a straight line basis. Crucially, we are well positioned to navigate through coal and gas recontracting over the medium term. Our ongoing coal recontracting strategy leverages Bayswater's major key advantages, including its strategic location and significant coal infrastructure, large stockpile capacity of around 4 million tonnes and ability to accept lower quality coal. Pleasingly, in the second half, we were able to procure an additional coal supply for FY26 and FY27 and a material discount to the prevailing Newcastle coal prices. Note that with some legacy contracts rolling off, Bayswater's coal fuel costs are expected to increase in FY26. However, this impact is expected to be largely offset by the pass-through of cost increases under existing wholesale contracts. Turning to gas, where our portfolio remains well balanced through to 2027. With the QGC supply contract expiring in December 2027, we are evaluating several supply opportunities beyond 2028, including new gas service agreements from domestic suppliers and LNG imports. Our approach to recontracting is supported by our market-leading gas storage capacity and geographical breadth of our demand base. With legacy contracts other than QGC rolling off, our gas input costs are expected to increase in FY26, noting that we expect gas margins to revert to historical levels with the impacts of elevated commodity pricing easing three years after the commencement of the Ukraine-Russia conflict in 2022. As we have previously indicated, the investment in the transformation of our business is expected to drive higher depreciation and amortisation over the medium term. Depreciation and amortisation for FY25 was $56 billion higher, driven by the continued investment in thermal assets, updates to rehabilitation provisions and the resulting higher asset bases, coupled with the full-year depreciation impact of the Torrens Island Battery and commencement of the Broken Hill Battery. As you can see, we expect an uplift of up to $100 million in FY26, based on the drivers on the right-hand side of the screen, noting that the expected commencement of the Liddell battery in early 2026. Our grid scale battery assets will drive up depreciation over the medium term. However, as I've covered, are expected to be a significant contributor to earnings. A key point I'd like to highlight is our strategic cumulative sustaining capital spend on our thermal assets will be capitalised and depreciated over shorter asset lives as both Bayswater and Loyang A near their targeted retirements in the coming years. Our strong operating cash flows have been deployed towards significant investment in growth with approximately $900 million spent on battery developments and strategic investments coupled with our strong cash conversion result. I'll quickly speak to some of the key movements. The reduction in operating cash flow was driven by the unwind of most of the $381 million worth of government bill relief that was received at the end of FY24. If you exclude the cash flow impact of the bill relief from 24 to 25, the main driver for the reduction in underlying operating cash flow was lower EBITDA in FY25. You will also see the cash tax payment of $268 million, reflecting PAYG installments for FY25, combined with final tax payments for FY24. Just a reminder that we paid a fully franked interim dividend and declared a fully franked final dividend, with the expectation that fully franked dividends will continue. Additionally, much of the significant items cash flow relates to implementation costs for the Retail Transformation Program. The significant uplift in investing expenditure was driven by strategic investments to accelerate the delivery of our strategy, namely the acquisition of firm power and terrain solar and our strategic equity investment in Colusa. Overall, operating free cash flow normalised for the impact of bill relief was $567 million lower at $788 million. As you can see on the bottom left-hand side, our cash conversion rate excluding margin calls, rehabilitation and the timing of bill relief remains strong at 97%. Moving now to net debt and funding, We have spent approximately $900 million on growth and strategic investments funded from operating cash flows. The other drivers of high net debt were the $390 million worth of fully franked dividends paid to shareholders, the prudent spend on the flexibility and availability of our assets, and the unwind of the majority of the $381 million worth of energy bill relief received in FY24. Our funding position remains strong following the successful amendment and extension of our syndicated facility agreement in April, which was increased by $310 million to just over $1.5 billion, with all tranches extended by over two years. This is a great outcome and evidence of strong lender support as we continue to deliver on our business strategy and decarbonisation plan and importantly maintain our investment grade credit rating. Following the refinancing of the SFA, we don't have any major debt maturing until FY27. Our liquidity position remains at almost $1.3 billion in cash in undrawn commuter debt facilities. Before I hand back to Damien, I want to talk to our disciplined approach to capital allocation and balance sheet management that is designed to fund growth, strengthen the core business and deliver shareholder returns. Firstly, we have a commitment to maintain a strong credit profile and BAA2 investment grade credit rating. Secondly, we will continue to allocate growth capital to projects of the strongest portfolio value and strategic fit, whilst also driving value from our core business. Crucially, we have multiple pathways, funding optionality and flexibility available to AGL in terms of our portfolio rebuild ambition. including assets funded on our balance sheet, where we're targeting returns at the upper end of our 7% to 11% range for firming assets. In addition, we have projects that are developed through joint ventures and partnerships, where we have the ability to share the costs as well as the ability to contract and offtake. Our flexible dividend payout ratio also helps us to strike the right balance between realising timely opportunities in the energy transition and strengthening the core business whilst delivering sustainable dividends to shareholders. In terms of capital management, we see potential in capital partnering as well as capital recycling, unlocking value from completed projects and redeploying capital into new growth initiatives. We also expect to commence a sales process during FY26 to explore a potential divestment of our 20% equity investment in tilt renewables. And finally, on the right-hand side of the slide, you can see an indicative depiction of the forecast sources and uses of cash over the medium term. Thank you for your time, and I'll now hand back to Damien.