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 AGL's 2026 full-year results webcast. 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, and from the various lands from which you're all joining. Today I'm joined by some members of my executive team, Gary Brown, Joe Egan, Dave Moreto and Matthew Currie. I'll get us started and we'll have time for questions at the end. Our strong full-year results reflected excellent business performance across AGL, with the strength of our integrated business helping to mitigate the impact of softer market conditions and a very mild May and June. Customer markets delivered a great result, driven by growth in customer services, excellent customer satisfaction outcomes and a return to more sustainable margins. The improved availability and flexibility of our generation asset portfolio, including the continued strong performance of our batteries, supported earnings resilience in a period of low volatility in the NEM, which was driven by a combination of unusually milder weather, higher renewable generation, factory capacity growth and lower transmission constraints. We also maintained strict cost discipline in a period of persistent inflation, holding operating costs broadly flat on the prior year. including delivering $30 million of our targeted $50 million FY27 net operating cost reduction a year earlier in FY26. Our FY26 results are a function of consistent strategic delivery over the last four years to build a strong, resilient and flexible business with incredible pipeline optionality that positions us very favourably today and through the transition. Overall EBITDA was 2% higher and underlying net profit marginally lower due to an anticipated increase in depreciation and amortization, reflecting the continued investment in the availability, flexibility and growth of the asset portfolio coupled with higher finance costs. An improved operating cash flow performance supported our material growth outlay and an increase in dividends. Today we've declared a final ordinary dividend of 26 cents per share, fully franked, bringing the total fully franked dividend for the 2026 financial year to 50 cents per share, 2 cents per share higher than FY25. This equates to a 53.3% payout ratio for the full year. As you can see, we are targeting a higher payout ratio of between 55% and 60% for the FY27 dividend within our existing policy, delivering shareholder returns whilst we press ahead with our growth agenda again in FY27, including the construction of the Tomago battery and the K2 project. Overall, a great set of operational and financial results. We've had another excellent year of strategic execution, generating long-term value and strengthening the resilience, flexibility and optionality of the business through the energy transition. Firstly, we continue to put customers at the centre of our strategy, supporting them through ongoing cost of living pressures whilst transforming our customer business to deliver better experiences, innovative products and a lower cost to serve. We achieved higher customer satisfaction outcomes in a competitive market. and delivered disciplined, well-executed acquisitions, including Ampol Energy's Australian energy customers. During the year, we also met our FY27 target to increase decentralized assets under orchestration to 1.6 gigawatts. Our strategic acquisition of South Australia's virtual power plant, combined with material growth in customer-controlled hot water under orchestration, drove a 250 megawatt increase in decentralized assets under orchestration to 1.74 gigawatts. In February, we also announced a long-term strategic partnership with Aussie Broadband, alongside the divestment of our telecommunications business for approximately $115 million. The divestment allows us to simplify customer markets operations, reduce ongoing operating costs and maintain a bundled customer proposition through the ATL brand. We also continue to benefit from our 20% investment in Colusa. Kaluza is generating strong momentum and expanding its global presence, headlined by the signing of ENGIE. Turning now to the transition of our energy portfolio. Our flexible asset fleet advanced by roughly 400 megawatts to 8.7 gigawatts, largely driven by an increase in decentralized assets under orchestration, as I mentioned earlier. This has spread across a diverse range of assets, including batteries, hydro, and 3.3 gigawatts of thermal coal unit flexibility. enhancing our ability to respond to evolving market conditions throughout the energy transition. Construction has commenced on the K2 project in Western Australia, and I'm pleased to report that the 500MW Liddell battery commenced operations in July, with construction of the 500MW Tomago battery advancing and a Deltessa secured. AGL was also awarded a CIS contract for the proposed 600MW Hexum wind farm in Victoria. and signed two long-term power purchase agreements with Tilt Renewables, adding further diversity to our electricity supply portfolio and supporting our target to add six gigawatts of renewable and firming capacity by 2030. The Tilt investment was a prime example of our disciplined approach to capital allocation and recycling, monetising developments for strong realised premiums, with the proceeds redeployed towards our higher returning firming projects and transition opportunities. We have also commenced engagement with a range of potential capital partners regarding the development of more than two gigawatts of renewable projects from our pipeline. This process is focused on identifying structures that improve capital efficiency while maintaining strategic and operational flexibility, and we look forward to providing further updates as this work progresses. Overall, a big year of strategic delivery and execution. In FY26, I'm proud that we achieved a significant improvement in business performance. Demonstrating the resilience of astrology. Starting on the left-hand side, we continued to grow our customer base, delivered great customer satisfaction outcomes and improved consumer margin during a period of elevated market activity. These results demonstrate the strength of our retail portfolio. In particular, our customer markets business recorded excellent growth in overall customer services. primarily in electricity services, including the acquisition of Amphor customers, with telecommunication services also higher. Some clear examples of Agile's strong brand and our focus on delivering superior customer outcomes include the increase in our Customer Satisfaction Score, or CSAT, to 84.1, an uplift in strategic MPS to plus 10, and spread to market churn improved by 4.9 percentage points. At the same time, we've generated an 11% improvement in consumer margin, reflecting a return to more sustainable levels. On the right-hand side, I'm pleased that our continued investment in our asset portfolio delivered a 4.3 percentage point improvement in fleet availability and positions us well to generate when market conditions are favourable. In a period of lower volatility, our growing flexible asset fleet generated an excellent premium of 118% to the time-weighted market price, five percentage points above FY25, with our continued investment in flexible assets supporting us to grow this premium over time. And finally, our operated battery portfolio delivered great performance with an EBITDA contribution of $57 million, $10 million higher, even with a year of lower market volatility. Touching on safety performance, where our total injury frequency rate did increase slightly. However, this metric remains significantly lower than FY23 and FY24 and well below industry averages. This is a good outcome given the significant amount of operational and maintenance activity undertaken across our sites during the year. I've already spoken to customer satisfaction and we acknowledge the lower employee engagement score of 70%. However, this score remains broadly in line with industry benchmarks and we remain focused on fostering an inclusive, empowered and connected workforce through the energy transition. I'll now turn to how the business will continue to create value as the market evolves. I want to begin by reaffirming the strength of an integrated business and our ability to deliver value as the market evolves. underscored by the strength of our customer base, the quality and the flexibility of our energy portfolio and deep optionality embedded within our development pipeline. We deliver 4.6 million customer services nationally, a large and diversified customer base that underpins the transition and rebuild of our energy portfolio, supported by great customer satisfaction and low cost to serve. This is backed by a high quality integrated portfolio of generation assets. which is becoming increasingly flexible, delivers earnings resilience and allows us to capture value from changing demand patterns and intraday market dynamics. Our market leading development pipeline provides significant optionality and our well-defined capital allocation framework ensures we only deploy capital to projects with the strongest portfolio fit and risk-adjusted returns. We're seeing value increasingly shift towards flexibility, firming and orchestration services. was a shift to electrification, higher EV penetration and a significant forecasted uplift in data centres coming online are creating durable sources of long-term demand growth. We are well positioned with a compelling suite of EV plans, propositions and partnerships and continue to see increasing update in electrification products across our consumer and large business customers. Importantly, retail transformation will drive lower cost to serve, improve customer experience and accelerate product innovation, all of which are critical as our customers move to a more electrified future and seek a broader suite of products. And finally, our capital-light approach to renewable development preserves vital balance sheet capacity for higher returning firming investments. Taken together, these business fundamentals and strategic priorities provide confidence in our ability to generate long-term returns for shareholders. The FY26 outcomes on this slide demonstrate those fundamentals in practice. Firstly, we are seeing benefits of increased fleet asset flexibility, which has grown by 1.3 gigawatts to 8.7 gigawatts over the past two years, delivering improved realized supply side pricing premiums, as well as higher quality and more resilient earnings. And we expect to improve these premiums as we grow our flexible asset capacity. Our continued investment in our cold-fired fleet is delivering the great outcomes you can see on the top right-hand side, with higher availability and greater cold-fired unit flexibility also contributing to the enhanced supply-side portfolio pricing outcomes. We're also delivering customer value and improved margins in a tighter retail environment, while keeping operating costs broadly flat since FY24. This has been achieved despite inflation and continued investment and growth, demonstrating great cost discipline with the full implementation of our Cost Out program to occur in FY27. Together these outcomes reinforce the resilience of our business fundamentals and ability to deliver through various market conditions. Turning now to a discussion on current market dynamics, where the recent events of the 21st and the 22nd of June in South Australia provide a timely reminder that electricity markets remain finely balanced and are highly susceptible to unexpected changes in supply and demand. Over those two days as an example, you can see that South Australia experienced extended periods of extremely low wind generation. Whilst batteries play an important role in supporting the market, the duration of these low wind events limited their ability to discharge adequate supply during the Sunday evening peak and recharge again before Monday morning. The combination of these factors contributes to the significant price volatility outlined on Sunday evening and Monday morning. demonstrating how quickly market conditions can change when key sources of generation are unavailable for an extended period. As I discussed at the Macquarie conference in May, alignment can easily break in five key instances. Extreme weather, low solar irradiation, thermal generator outages, interconnected issues, and this particular example, lack of wind generation. Now overall, the current picture is one of a system functioning well. however with limited margin for error during these peak periods. Demand is growing, peaks are rising and volatility remains a feature under strained conditions. These dynamics underline the importance of adequate firming capacity and business resilience, both key focus areas for AGL as the NEM continues to navigate the energy transition. As mentioned at the beginning, we had a year of lower volatility which reflected a combination of the factors you can see on the screen. and this is driving the softer caps pricing you'll see on one of the following slides. As the energy transition progresses, we do expect volatility to be a feature of the NEM as it has been historically. This is due to the withdrawal of coal-fired generation, new renewable generation and the grid navigating new transition build-out. Now to a more detailed discussion on fleet performance, where higher commercial availability and plant flexibility help mitigate the earnings impact of lower market volatility. On the left-hand side, you can see we recorded a solid increase in cold-fire commercial availability, driven by stronger reliability and a lower unplanned outage factor. As I alluded to, the lower volatility captured was primarily attributable to the lower spot price volatility recorded in the NEM this year. Generation volumes overall were 3.4% lower, largely driven by lower thermal generation utilization in response to these market conditions. Despite the lower thermal generation volumes, higher thermal fleet availability combined with 3.3 GW of thermal fleet flexibility enabled AGL to generate when market conditions were most favourable, delivering the strong, realised supply-side pricing premiums I spoke to earlier. Continuing the discussion on market conditions, the divergence we are seeing between FY27 and FY30 forward curves largely reflects recent cyclical factors. whilst the medium-term outlook points to a progressively tighter system and returning to pricing levels which will ultimately be required to underpin investment requirements. The forward market is increasingly recognising numerous structural changes underway across the NEM. Planned coal-fired retirements in both New South Wales and Victoria from FY29 will remove significant baseload capacity from the system. Importantly, if those retirements are delayed, reliance on ageing and less reliable baseload generation is likely to increase volatility, further reinforcing the value of the portfolio flexibility. At the same time, demand forecasts continue to strengthen, underpinned by the growth of data centres and broader electrification across the economy. Crucially, strong market and commercial signals are required to support the delivery of new renewable generation at pace required by the system. Overall, AGL is well positioned against this market backdrop, and we are largely hedged for FY27, providing earnings resilience in the near term, noting the FY27 BWOPS indicated by the horizontal dotted lines on the screen. A diversified and high-quality integrated portfolio positions us to capture value from any uplift in forward prices and volatility, with a growing flexible asset portfolio delivering enhanced, realised supply-side pricing outcomes. As mentioned at the start, Customer markets performance was headlined by growth in customer services, higher customer satisfaction outcomes, as well as margin improvement in a competitive market. Total services to customers increased by 92,000, with energy services growth both organic and attributable to the acquisition and successful integration of Ample Energy's customer base. Importantly, we've maintained strong customer satisfaction, supported by our leading energy brand, digital offering and loyal customer base. Our churn advantage to the rest of the market also improved to 4.9 percentage points. These are great results in a highly competitive market. You can see the improvement in consumer gross margin on the right-hand side, driven in part by customer growth and reflecting a return to more sustainable levels. We are reshaping customer markets to focus on our core energy business, modernise our product offerings and back a leading platform in Colusa, which continues to expand its domestic and global appeal. I've already touched on our long-term strategic partnership with Aussie Broadband and the divestment of our telecommunications business, which allows us to simplify operations and sharpen our focus on our core energy business. Our 100% subsidiary, OVO Australia, is currently utilising Kaluza and Salesforce and continues to see rapid growth, innovation and positive satisfaction outcomes supported by these modernised platforms and AI capability. Our retail transformation program will unlock these capabilities across AGL as our customers shift towards a more electrified future. This program continues to make progress with key capabilities deployed and savings of $25 million delivered ahead of plan. We are focused on delivering the program successfully and following a detailed review of the next phase of implementation, we now expect the transformation program to extend by up to 12 months and cost to increase by an additional $100 to $150 million. This reflects the scale and complexity of the program, bolstering of our delivery approach and additional investment to de-risk implementation. And we believe this additional investment will support the effective delivery of a modern, scalable retail platform and underpin long-term customer and shareholder value. The anticipated strategic and operational benefits of the program remain unchanged, and we expect the full benefits of annual pre-tax cash savings of $70 to $90 million from FY30. Beluza continues to expand its local and global presence, with AI now utilized across its entire product and software development lifecycle, expediting both delivery and entry into new markets. Colusa's second retail implementation is underway in Australia and is making excellent headway in Europe. The landmark agreement with Engie is its largest deployment to date and migrations are underway in Belgium and France localisation has commenced. Overall, we believe Colusa's AI-native operating model, maturing platform and rapidly expanding global appeal underpins the long-term value potential of our strategic investment. We are taking a disciplined approach to investing in flexible asset capacity position us very favourably through evolving energy markets. Our strategy is premised on building a firming portfolio diversified by technology and asset type. Batteries and demand response enable us to respond to peak demand events in a matter of milliseconds, whilst gas peakers and hydro assets provide longer duration firming capacity to support grid stability. This broad mix enhances our ability to respond to changing market conditions and capture value across a wide range of operating environments. As we grow our flexible asset capacity, we expect to strengthen realised supply-side pricing outcomes and deliver higher quality, more resilient earnings over time. The middle graph breaks this down by asset type, also showing the solar premiums we're achieving for our coal-fired generation assets through our investment and flexibility. Importantly, we'll continue to sequence new developments in response to market signals, prioritising investments in regions with higher renewable penetration and near-term coal-fired withdrawals. will also seek to grow demand-side flexibility with a focus on batteries and electric vehicles whilst pursuing our strategy to own and operate a gas peaker in each mainland state. Our market-leading development pipeline of over 10 gigawatts provides significant optionality for our portfolio transition. This pipeline is diversified across location, technology and asset type, including grid-scale batteries, pumped hydro, gas, wind and solar. We have opportunities spanning every mainland state, which is complemented by approximately an additional 5 gigawatts of early-stage opportunities. This breadth of options allows us to remain disciplined and responsive, sequencing new developments in line with market signals, customer needs and system requirements. Importantly, we will leverage this optionality to only deliver projects with the best strategic fit and risk-adjusted returns. Gary will elaborate further on our discipline approach to capital allocation. As I've mentioned before, this pipeline will continue to evolve as projects are added, removed where uneconomic, and where projects reach FID. Data centres are one of the most significant emerging sources of electricity demand. And before I hand over to Gary, I want to spend a few moments talking about how our energy hubs and energy portfolio present a unique opportunity to support regional data centre expansion. What differentiates these sites is not just the scale of the land available, but the combination of water infrastructure, grid connectivity and generation capacity that already exists today, not to mention the sheer breadth of optionality within our development pipeline, which I just spoke to. These sites were built to underpin large-scale industrial operations and have the potential to support over 7 gigawatts of data centre capacity over the long term, largely based on grid connection potential. Importantly, data centres require reliable and increasingly low emissions supply at scale. This is where our integrated portfolio becomes a real advantage. We can support customers with a combination of renewable generation and firming solutions. At the same time, future developments have the potential to attract new investment into regions where AGL has operated for decades. creating new job opportunities for our highly dedicated workforce, supporting both economic transition and long-term regional growth objectives. Collectively, these energy hubs provide a unique platform to enable Australia's digital-led growth whilst creating long-term value from AGO's strategic land and infrastructure portfolio. Now 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 shortly. As Damian mentioned, our strong full-year financial results reflected excellent business performance across the organisation, with EBITDA of $2.1 billion and underlying net profit of $631 million. Net debt ended the year broadly flat, with our significant outlay for growth, strategic acquisitions, sustaining capital and $330 million worth of fully franked dividends, more than offset by strong operating cash flow generation and the tilt divestment proceeds. As Damien also noted, the tilt divestment was a prime example of our ability to recycle capital when timely and prudent, monetising developments for strong realised premiums, with the divestment resulting in a realised post-tax gain on sale of $268 million. We've also commenced engagement with a range of potential capital partners regarding the development of more than two gigawatts of renewable projects from our pipeline and look forward to updating the market as this work progresses. Our balance sheet remains in a healthy position with our BAA2 investment grade credit rating maintained. Today, we've also announced a fully franked dividend of 26 cents per share, up one cent, taking the full year dividend to 50 cents per share. Return on Invested Capital remained above 10% and I'll speak to our disciplined framework for deploying capital through the transition. Overall, a great set of financial results. Let me first take you through underlying profit in more detail. Starting on the left, the Stronger Customer Markets performance was primarily driven by margin growth across the consumer electricity and gas portfolios, with consumer electricity margin benefiting from solid customer growth and portfolio optimisation. The growth and other margin bar reflects the first year of gross margin contribution from South Australia's virtual power plant, which we acquired from Tesla last year, as well as margin from the sale of battery hardware, which has been supported by government initiatives. The increase in customer markets OPEX was mainly driven by higher net bad debt expense following the cessation of government relief support in conjunction with elevated cost of living pressure. These drivers were partially offset by the ongoing delivery of operating model benefits related to the Retail Transformation Program. Moving further to the right as we now focus on the integrated energy business, you can see in the initial bar being flat that stronger fleet availability and flexibility helped mitigate the earnings impact of lower market volatility as well as a reduction in thermal generation volumes. The positive $10 million bar for batteries reflected a stronger performance from the Torrens battery and we continue to be very pleased with the overall performance of our 300 MW operational battery fleet, which delivered a $57 million EBITDA contribution for the year, a great financial result. Note this is a 20% capex yield since operation of this growing battery fleet. As previously advised, The lower gas gross margin was driven by higher-priced gas purchases as our lower-cost legacy contracts gradually rolled off. Integrated Energy's OPEX improvement was attributable to the ongoing productivity and optimisation initiatives across our various sites. As previously flagged, the $19 million uplift in depreciation and amortisation was largely attributable to the continued investment in our thermal assets with a shortening use for life and growth. For FY27, we do expect an uplift of roughly $50 million for depreciation and amortisation, which will include a full year's worth of depreciation for the Liddell battery. We also note the increased net finance costs, which reflected higher average net debt balances prior to the receipt of the tilt proceeds, coupled with an increase in interest rates. We have our costs well under control and we will deliver on our $50 million cost-out program for 2027. We previously indicated a 2% increase in FY26 operating costs in February. However, through our recent cost-out initiatives and tight cost controls, operating costs have remained flat with the impacts of inflation more than offset by the significant productivity initiatives implemented across the organisation. More broadly, as you can see, we've made significant progress on managing our cost base over the last few years, with operating costs remaining flat since FY24, despite significant inflationary pressures and our material investment in growth. And this trend is expected to continue in FY27. Just a reminder that our cost-out program in FY27 is targeting an overall sustainable cost benefit of $50 million per annum after CPI. Due to productivity initiatives undertaken in FY26, we were able to deliver some of these benefits earlier than originally stated. With $30 million of benefit delivered in FY26, we again expect to fully absorb CPI through productivity benefits in FY27. This targeted cost-out program reflects our ongoing focus on minimising operating costs in an inflationary environment whilst continuing to invest in growth. Briefly touching on CapEx, in line with our strategy, approximately $700 million was spent on growth this year, with the majority of capital deployed to advance our high-returning firming projects of approximately $600 million. This growth outlay comprised roughly $70 million for the remaining project costs of the Liddell battery, approximately $360 million of the estimated $800 million total project costs for the Tomago battery, with roughly $370 million expected in FY27 and $70 million in FY28 and approximately $140 million of the estimated $490 million total project cost for the K2 project with roughly $270 million expected to be spent on in FY27 and the remainder in FY28. As you can see on the right hand side, FY27 forecast growth capital spend is roughly $800 million and will follow a similar trend as we press ahead with the construction of high-returning firming projects. FY27's sustaining capital spend is expected to be broadly in line with FY26, approximately $700 million, and includes roughly $500 million on our thermal fleet, as we have two major planned coal-fired unit outages again in FY27. This prudent spend is to maintain the availability and reliability of our thermal asset fleet in a transitioning market, as evidenced this year through a great availability result. Turning now to cash performance, headlined by strong operating cash flow generation and a 97% cash conversion rate, which supported our material investment in growth. It is important, as we have demonstrated, to continue to generate strong cash flows in our business to support ongoing investment in growth initiatives. I'll run through some of the key movements. Underlying operating free cash flow was $110 million higher, driven by stronger EBITDA and the unwind of government bill relief to customers in the prior year, partly offset by higher margin calls. The majority of the significant items relate to the continued implementation of the Retail Transformation Program. You can see the receipt of the tilt proceeds of $739 million. and the other investing activities line primarily comprises SAVPP acquisition investment of roughly $80 million. Operating free cash flow, excluding the impacts of bill relief timing, was $42 million higher, largely driven by lower income tax payments. Encouragingly, our cash conversion rate, excluding margin calls, rehabilitation and the timing of bill relief, ended the year at 97%, a brilliant result. Turning now to net debt, credit metrics and our solid funding position, we continue to maintain a strong balance sheet supporting our investment grade credit rating. Starting with net debt, which ended the year broadly flat, noting that our significant outlay for growth, strategic acquisitions, sustaining capital and $330 million worth of fully franked dividends was more than offset by strong operating cash flow generation and the tilt divestment proceeds. A great outcome. Importantly, we also maintain our BAA2 investment grade credit rating with headroom to covenants. Our funding remains in a great position following the $510 million Asian term note refinancing in May, with all tranches extended by two years at lower margins. I've already touched on the tilt divestment and spoke to the $500 million AMTN issuance in February, which was over 10 times oversubscribed. An excellent endorsement. of our business fundamentals and strategy. Our liquidity position remains very healthy at almost $1.6 billion in cash and undrawn committed debt facilities. Average debt tenure is stable at just over five years and we don't have any major debt maturing until FY29. I will now take you through our capital allocation framework that we apply within the business. We remain disciplined in how we allocate capital, balancing investment in our core business, with targeted opportunities that position AGL to create long-term value through the energy transition. On the left-hand side, you can see that our capital allocation principles remain consistent, robust and flexible to respond in an evolving energy market. Moving to the right-hand side where we target an IRR of 10% across the portfolio for all growth investments developed on our balance sheet. Just to be clear, This is post-tax, ungeared and at a project level, leveraging our material portfolio optionality to deliver projects with the strongest portfolio fit and risk-adjusted returns. In customer and C&I, we're concentrating on new product offerings and the expansion of our commercial and industrial energy as a service business, particularly behind-the-meter projects that deliver ongoing recurring revenue. We're also progressing almost $2 billion worth of firming projects Adding to our flexible asset capacity, which remains key in a transitioning energy market. I've already spoken to our near-term imperative to create an investment partnership for the development of a 2 gigawatt plus wind farm portfolio. And finally, outstanding business capex priorities continue to focus on maintaining safe, flexible and reliable operations within our energy portfolio, whilst driving efficiencies and meeting regulatory compliance requirements within customer markets. These investments are essential to supporting the performance and resilience of our core business. We continue to maintain our dividend policy of 50% to 75% of underlying NPAT, noting that we have the flexibility to pay within this range, of course, at the board's discretion. This dividend policy provides the flexibility to allocate capital in a disciplined way, balancing shareholder returns with investment and growth across a range of market conditions. This year's total fully franked dividend of 50 cents per share equates to a payout ratio of 53.3%, which is two cents per share higher than the prior year. We're also targeting a higher payout ratio of between 55 to 60% for the FY27 dividend. This is within our existing policy range and demonstrates that we have the ability and flexibility to pay dividends within the broader range from our strong operating cash flow. Thank you again in handing back to Damien.