Ansell Limited

Thank you for standing by and welcome to the ANSEL Limited FY24 full year results. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Neil Salmon, Managing Director and Chief Executive Officer. Please go ahead.

Thank you. Good morning to you in Australia. Good morning to people around the world, or good old times a day to people joining from around the world and listening in to our presentation of our fiscal year 24 results. And I thank you for your time and your interest in Ansell. I will begin as usual with our summary of our safety and sustainability highlights. You could move to page five. So overall, this page summarizes a lot of progress And it's also a reminder that the goals we set out under these headlines are challenging. They require a lot of success to get right, and our progress will not always be in a straight line. And so I'm going to begin with a couple examples of this. Firstly, for the first time in many years, we saw a tick up in our recordable injury rate, now measured using the TRIFR metric. Two reasons for that. Firstly, these figures now include the consolidation of what was formerly Care Plus, now Ansell Cerenban. And even though the Ansell teams have done a fantastic job reducing the injury rate at that site to around one-fifth what it was a couple of years ago, it's still higher than the Ansell average. And so consolidating Cerenban increases the overall Ansell average. If I take out that effect, then injuries in the last year were around the same as they were two years before that, but we couldn't sustain what was a record prior year. So a step back on our safety metric and the vital imperative that we get back on the improvement track there. The second challenge to highlight on this page is that reduce water withdrawals goal in the middle section. And we remain committed to reducing our withdrawal of water from freshwater sources by 35%. But to do so requires us solving for a number of constraints. The recycling water back into the production process requires us to meet product quality standards, and we also have to be mindful of the effluent treatment, whether onsite or using municipal sources. So we haven't managed to solve for all of those in full yet, and so we are now giving ourselves a couple of years in addition in order to hit that water withdrawal target and extending the target to FY27. The rest of this page, though, summarizes significant progress. Another year of reduced emissions across the network and gaining confidence from our success in scope one and scope two emission reduction, we have now committed to the science-based targets initiative, a full net zero goal, including scope three, that in the last few weeks. We maintain zero-waste landfill at the facilities that have already met that standard. And we continue to influence more broadly across our industry that standards and regulations also evolve to allow companies, not only Ansell, but our peer companies to meet sustainability goals. And the most recent example of this is persuading the European Union to reduce the requirement that paper instructions for use are included with every pack of blood sold and allowing us to move to a QR code. which actually is a better means of delivering instructions for use anyway. So with that change being implemented over the next year or so, a huge quantity of paper waste will be eliminated by Ansell and by our peers as well. Finally, great to see recognition by two of the most respected The first time we have achieved a gold medal with Ecovaris, which puts us in the top 5% of all companies rated by Ecovaris. And then Morningstar Sustainalytics also ranked us as a top-rated company. If you narrow down to the more precise sector in which we're grouped within these groups, then we're in the top 2 or 3% of our peer companies rated. But we don't do this. It's good recognition. We don't do it for the sustainability rating. We do it because many of these initiatives also have financial benefits, and increasingly they're important to our customers and the choices they make behind the suppliers that they want at PPE. And so these goals are also vital and make good commercial sense as well. Turning now to performance overview. And I'm continuing our practice of the last few results to set out on the left here the goals that we communicated to you in our most recent results communication, in this case the February half year, and then my assessment of our progress against those. And I'm pleased to say again another summary of very good progress, delivering pretty much every goal we set out for the half year and overall delivering above the midpoint of the guidance range we set out originally one year ago. Industrial performance continues. This is a business that's been performing very solidly over a long period of time, with perhaps that performance obscured by a more variable performance in our healthcare business. I'm particularly pleased by the EBIT and EBIT margin performance for industrial, and Zubair will go into that in a little bit more detail later. At the beginning of the year, we said for healthcare that we expected some destocking. We expected it predominantly in the first half, and then we expected that to moderate into the second half. And that is indeed how it played out. So two aspects of good news to that. The first is that we had a much clearer view of forward trends in our industry one year ago. And that talks to our improved ability in planning and forecasting. I'll say a few more words on that later. But more importantly, I do believe we're now substantially at the end of this de-stocking wave that has held back the healthcare business over the last two plus years. And that means the demand on Ansell is now normalizing back to the ongoing end-user demand that's been in the market throughout this time. So exam-simple use reporting good volume growth throughout the year. Very encouragingly, our life science business products sold into clean room environments achieved double digit growth in the second half. And we also saw reduced destocking effects in surgical. Frustratingly, this one has a slight cedilla mark against it. We had the orders to also achieve growth in surgical in the second half. But a sizable chunk of those orders were deferred through congestion and destruction that we'd seen arising as a result of the Red Sea container shipping impacts. That business is not lost. It's deferred into FY25. And overall, the demand picture and order picture for surgical also very positive in the second half. So overall, healthcare EBIT margins also improved, still below where we expect them to be for this business, but I'm satisfied with that second half improvement versus the first half. Our major programs are on track. The APIC program, we upgraded our targets, as you will remember, in February, and we continue to track in line with those upgraded targets. The savings coming through as expected and the costs in line with expectations. Also a very good year in how we funded APIC. We set a goal to fund it through inventory, strong cashflow results, but I know Zubair wants to go into that with you later. And so I'll leave those highlights to him. And all of that together, as I mentioned, resulting in an EPS delivery on a comparable basis to how we set out the EPS guidance at the beginning of the year of 105.5. So that means it excludes the cost of APIT, and it also excludes more recently both the share dilution and the interest benefit of the equity raise in advance of the KCPP acquisition, which closed on the 1st of July. Below that, a few more details on APIP, but I'll cover that later, and some more details on the acquisition, which also I will cover later. So digging in a little further to organic growth performance on the next page, and here's that solid growth in industrial that I talked to, overall growth in the year of 3.3%. Even with... fairly neutral demand conditions for mechanical, even a little soft in some mature markets. We're recording organic growth close to that 3% level and the growth rates improved through the half. And that's coming about through success of new products, which I'll talk a little bit further about in a moment. A good half a year for chemical. Now, part of that was we indicated earlier that we'd reached an agreement with our exclusive partner in the, I'm now saying in the household gloves sector. We didn't specifically call it household gloves six months ago, but we said we were exiting a lower commodity piece of the chemical business. In the last 12 months that we've had that business, through the exit agreement we reached with that customer, it was operating at a higher than the normal margin as a result of this pricing benefit of $5 million. So there was a little boost in chemical, also benefited chemicals. margins from that factor but even extracting that i'm pleased at the demand trends i see in chemical and it's coming across the portfolio we see it on our highest performance styles both body protection and hand protection and indeed we're launching a number of very important products at the high end within chemical but we're also seeing improving demand in the more medium and general purpose product categories as well which is also encouraging So here are the full year stats for the healthcare segment. But as I commented earlier, a significant difference first half, second half, which I'll cover in a moment. Overall volume growth in exam. Revenue lower because of that pricing carry forward that we talked about a year ago. Surgical, a much improved second half, but we weren't able to fulfill all orders because of the Red Sea shipping disruptions. And then life science, significantly stocking in the first half, as we predicted, and then significant growth in the second half. And, of course, that sets us up very well for the acquisition of the KPU business. And so here's the sequential growth slide that I indicated earlier. And we don't usually show this, but I wanted to demonstrate the difference, particularly in healthcare in seasonal trends. So we usually see about 51% of revenue in the second half. So mechanical, fairly typical seasonal weighting, chemicals slightly stronger to the second half, and not particularly because of that exit approach that I talked about. So that's more general demand trends improving. But here you can see significantly improved second half for exam single use, especially for life science, as the stocking moderates. Surgical, only a moderate improvement in the second half. And again, that is because of the Red Sea disruption to that business. But now, and this is the last time I will show the trend through the pandemic period, because we're drawing a line behind that phase of Ansell's history on this call. But I think important to note that industrial throughout this five year period has achieved that consistent three-ish percent growth and through what has been quite a turbulent period of economic uncertainty. So I'm encouraged by that. But I also have higher growth ambition for this business. And I hope that we will demonstrate that going forward into F25 and beyond. And then in healthcare, and these are similar trends to ones we've commented on before, although the exam single-use business revenue is similar now to the F19 period, the quality of the business has improved significantly. Margins are higher. We've shifted the mix more to differentiated styles, also to styles in-house produced versus outsourced. We're now at 50-50 mix, which is about right for the business. And then our highest performing business unit here is the life science businesses. And remember, surgical and life science together in the F24 period still has six months to do stocking using this revenue number. And even with that, achieve good growth over this time period. So I believe this is a picture of a business that, looking over this time period, has performed fairly consistently and steadily, and that's a good base to go forward into S25, as I'll cover at the end of this presentation. So moving on to the strategies we use to drive organic growth investment. And these three key areas have long been a feature of our discussions externally and our focus internally. Emerging markets again outperformed the overall Ansell average, but a more mixed picture within emerging markets over the last 12 or 18 months. Another year of strong growth in Latin America. Brazil, particularly the highlight in the last 12 months, and Mexico continuing to be a very solid performer for us. Encouraging within India to see double-digit growth continuing for our surgical portfolio. China started the year soft. Sales were lower in the first half, but improved significantly in the second half across all our business units. And that's also encouraging on the demand picture for China as we go into F25. We continue to invest. Our number one priority for investment is in our capability behind differentiated products, and that includes the manufacturing capacity for those. So you're fully aware of our India surgical construction, which continues on track. It is already active in packaging and sterilization operations, but the major ramp up will be when we commence dipping operations, which we're targeting for fiscal year 26. And then on the right are some of the highlights of new product innovation. The top two both within the mechanical portfolio 11571 is an ultra lightweight high cut performance glove and it's showing some of the strongest first year growth metrics that we've seen in many, many years at Ansell. So real hit with our customers. It's extremely comfortable to wear as well as providing that very high cut protection. And it's part of a family that we've launched under that ultra lightweight high cut value proposition to customers. And then what I expect to be our most successful ever new product is the R840 to the right here. This was combined Hyplex liner technology, the grip, the durability that we're famous for with Ringer's impact technology, but in a lighter form that opens up new markets where in the past you couldn't have worn traditional impact protection because they're too bulky and they prevent you doing your work. We think we've cracked that code with a lightweight impact protection product, which is creating new market opportunities for us. And I expect significant growth on that product into F25. Below here, a couple of products in other categories. So as I mentioned in chemical, we're innovating both at the very top end and at the general purpose end of our portfolio. And this is an example of a suit that's been designed to the very, very demanding specifications of biosafety labs worldwide. Very niche market, but very, very important to hit both the performance gain and the comfort criteria. We now believe we have a product that the biosafety labs themselves are delighted to have, and we're rolling that out currently. And then we continue to innovate in the cleanroom space, and there's this one example of our latest innovation there. So these three aspects I expect to continue to be the major sources of organic growth going forward. So turning now to the APIC program, and I'll be quite quick through these next couple of slides because there's not a lot different to what you have seen in previous presentations. This new organization structure when in place was complete by around October of last year, so early in our fiscal year. And I continue to see the benefits of this new structure come through. The performance of teams is improving. The decision-making is quicker, and we are more agile and more customer-centric in how we go to the market. Still opportunities to further improve that, and we're realizing the cost-saving benefit of the change, too. We hit all our manufacturing goals during the year, and these are the headcount reductions that we committed to and that we have delivered. If you look at our total headcount number, it's actually increased year on year, but that is because we are now consolidating the Ansell Care Plus facility for the first time. It wasn't in the prior year number. And we are investing in other sites, not the sites that have seen reductions, but in other sites where we are ramping up in support of those new products that I mentioned on the previous page. So we are both achieving our productivity goals and also continuing to invest for growth where we see outside growth potential. And then the IT work continues on track, but as you know, most of the cost and benefit for that initiative is in out years. Turning to costs of the programme, and these, again, as expected in the year, if I look at F25, you'll see there's some spend still to go, but the majority of the programme was complete, with the exception of the IT initiative, which has a couple of years still to run. So overall pleased with APIP status. It's on track and I see no signs of it being distracted by our other big initiative, which is the KCPP acquisition. So let me now turn to that and say a few words on that. Firstly, this is a recap of the messages we communicated to you back in April when we announced the acquisition. I won't cover every point because you've heard these before. It is encouraging to me that, as I said to you, we were doubling down in our most attractive and highest growth vertical. And the results that I've shared with you in the life science sector confirms that over the last six months. And the KC PPE business, or now called KVU within Antle, saw similar trends themselves over the last six months. So the business is tracking to the momentum we hoped for and expected and built into our business case, which of course is encouraging. I think what I would say, though, that now that the barriers of being competitors are removed, now that the teams are on the same team, the complementarity of the two portfolios is very much in evidence as our teams get together. As competitors over the years, each of us has wanted what the other one had and in some cases struggled to replicate it. And now you put the best of both together, which is very much our mantra. in this integration process, and the teams are working extremely well together and seeing all sorts of opportunities to take this new extended portfolio and service offerings to market. And also, as I talk to our leading customers in this space, they are also enthusiastic and excited at the potential that our two businesses together offer to them in value creation, whether our channel partners or our key end users as well. Overall, the metrics here not changed from our acquisition thesis, but my confidence in them has certainly improved as we've gone through the steps of acquisition and integration so far. So a few words out on this next page. So, a reminder that in this initial phase, the business is still reliant on Kimberley Clark for many of its business processes. The business had not been carved out of Kimberley Clark systems prior to divestment. So, we're in this transition services period in which much of the order to cash customer fulfillment processes are still being conducted through Kimberley Clark systems, people and processes. It was a lot of work to get that all set up for day one. I'm delighted to be able to report to you that since 1st of July, when those transition services went live, the business has continued on its track without missing a beat. And that's a lot of credit goes to the Ansell team, the Kimberly Clark team, and also the KVU team, who are now Ansell employees, but were working diligently on guaranteeing the success before that July 1 cutover. So, as I mentioned in this middle section, productive initial discussions with customers, lots of opportunities being talked about. The head of the KBU, Rob Hughes, now reports to me and is a member of my executive leadership team, is stewarding that business very well and also bringing his insights to Ansell as to what the full opportunity is of putting these two businesses together. The overall cultural fit seems very strong and I know that's one of the hardest things to quantify and to assess and the hardest things for you to see as to whether it's working or not. For the most part, we've known each other for years through moving in similar industry circles, competing against each other, yes, but also having great respect for the capabilities of the other. And so it's really good to see the teams coming together, working so well in this initial phase. And that also gives me confidence that the cultural fit will be a net positive to our progress from here. Overall, in terms of financial metrics, trading performance through the last six months prior to our ownership was in line with my expectations, off to a good start, again in line with my expectations so far in fiscal year 25. But a reminder that this is a higher risk phase for the business as we are reliant on those transition services. And as I mentioned back in April when we announced the transaction, we're also relying on the Casey Professional Salesforce during this transition period to continue supporting the safety portfolio, not the scientific portfolio, but the more general industrial safety portfolio. And as you know, we factored in risks of this period into our projections for the business. We hope to mitigate those risks and not to see them eventuate, but I think it remains prudent for us to consider and continue with the risk adjustments in the projections we make to you, and I'll comment on that further when we get to guidance. So that's my opening summary of results today, and now I'd like to hand over to Zubair for some more detail on the financials. Zubair.

Thanks Neil and hello everyone. Since Neil's already covered some high level aspects of our financial performance for the year. As always, I'll just add a few more details. Overall, clearly we're satisfied with the adjusted EPS landing at just under 106 cents and that excludes the effects from the equity raise we undertook to fund what we're now calling the KBU acquisition and therefore that EPS number that I'm using or quoting it directly now compares to that original fiscal 24 guidance range we gave of 94 to 110 cents. Now, after a couple of tumultuous post-pandemic reporting periods, I'm pleased we can now report EPS towards the upper end of those expectations we set coming into the year. And as you've just heard, sales were down just under 3% on a constant currency basis. And with that growth in the industrial segment offsetting the lower healthcare sales, And there we had foreign exchange providing a tailwind to sales of just over $12 million. Same time, G paid improved by 100 basis points versus fiscal 23 and very strong industrial margins, more than offsetting those lower earnings from the health care segment. Now, it's well documented by now that our healthcare segment was inversely or adversely, I should say, impacted from that customer destocking. And that in turn drove us to slow our production levels down so we could reduce our own inventory. And I'll say a bit more about that when we get to the segment earnings in the next couple of slides. Moving to the SG&A line, that was up just over 4% on a constant currency basis. And that was driven, again, we signaled this in other calls, the need to normalize incentive provisions from those abnormally low levels that we concluded in fiscal 23. But outside of that incentive movement, I think we've diligently controlled employee costs. And that's even with the high inflation backdrop. and overall employee costs down year-on-year, reflecting a very well-executed productivity program. Now, despite the foreign exchange providing a tailwind to sales, there was an $8 million or so headwind to EBIT for the year, and underlying currency movements were favorable to earnings by about $11 million. And the hedge book did the job it's designed to do by muting that gain. And overall, we registered a loss of $11 million closing out hedge book positions in fiscal 24. And that compared to a hedge book gain of $9 million in fiscal 23. And of course, the difference being the driver of the total year-on-year foreign exchange loss. Excluding $66 million of significant items, largely related to that APIC program, as Neil just outlined, and the acquisition transaction costs. When you wrap all that up, we ended up with a decline of earnings of just over 1.3% in constant currency terms. Bridging to net profit, interest was modestly higher because of higher global interest rates and increased leasehold expense. And our effective tax rate was higher as we didn't benefit from utilization of tax losses in our Australian entity from those hedge book gains we had last year. Now, in summary, I would say that's a satisfying financial performance on this slide in fiscal 24. And I think it's a solid platform going into fiscal 25. Turning to slide 16 now, looking at the performance of our industrial segment. Here we achieved constant currency sales growth of just over 3%, and that's growth in both mechanical and chemical products. Sales growth was, I'd say, largely a function of price and favorable mix, and the reported sales included just over $9 million of favorable effects. I think it's also important to note here in this segment, we did benefit much better than anticipated pricing on chemical household gloves, and that was to the tune of about $5 million as we exited those products as part of APIP. Now, clearly, that pricing dropped straight through to the bottom line, and it's not going to repeat in fiscal 25. But that said, industrial earnings closed at a record $129 million, and the margin percentage in that segment also at an all-time high of 16.5%. And that's driven by the sales growth, there's net cost favorability, there's improved plant performance, and those APIP savings all contributing very well to that performance outcome. There was a small or modest foreign exchange headwind of just under $4 million from those hedge book losses. And again, those muted the underlying currency tailwinds. In terms of the healthcare segment, slide 17, I've spoken about this in length in prior calls. Neil's just been through the nuances of the healthcare sales performance. And so I'll just reiterate that there are good signs of diminished destocking across both surgical and life sciences. And we also knew this year we had that residual sales headwind from that exam single-use price reductions we implemented in fiscal 23. Net, this translated to a constant currency decline or sales decline of 8%. And foreign exchange was a small help here, adding just under $3 million to that reported sales number. Clearly, earnings were lower due to those reduced sales. And because of our conscious decision to slow production in the first half, This meant our fixed manufacturing costs were absorbed over lower manufacturing volumes, and that led to a higher cost of goods sold. But we did see normalized volumes reverting in the second half, as Neil just said, and EBIT margins improving to 12.4% on improved sales, higher production, and growing APIP savings. And like the industrial segment, healthcare, had a foreign exchange headwind to earnings due to those hedge fund losses. So in summary, while it was a challenging year for this healthcare business, we saw improved momentum moving into the second half, and we're more confident than we've been in a long time that this will carry forward across fiscal 25. Moving to the input cost slide 18, Here, raw material costs, they were largely benign in fiscal 24, and that was with lower nitrile costs offsetting higher costs of natural rubble latex. However, we did see increases in nitrile and NRL in H2, and I'd expect those costs to be higher year over year as we move across fiscal 25. Our conversion costs as well continue to be subject to higher inflationary pressures, and that's most notably against payroll and energy costs. But our teams, we are charging them to address employee cost inflation with offsets, clearly through productivity or automation initiatives. And wrapping up on this slide, outsourced finished goods costs, they remain, again, stable and a lower percentage of our COGS mix than in years past. Turning to the CAPEX summary, again here I'd highlight the significant spend was on that continued construction of the Greenfield surgical plant we're building there in India. And I'd expect the bulk of that construction for that site to be completed in fiscal 25. And from there, I think we'd see CAPEX, it's got a trend downwards more towards the maintenance levels we've seen in the past. And that's because our global manufacturing network should have the capacity now to meet customer demand across our medium term plans. Slide 20, Neil's just talked about this KCPP acquisition or the KV acquisition, KVU acquisition as we're calling it. So I'll just pick out a few highlights here. In terms of the financing specifics, completion took place on July the 1st, just after our year end. Consideration was $640 million. We previously communicated that. There was a small final purchase price adjustment based on working capital at completion, and that will be made in the coming months. Funding was $1. via both equity and debt. And there was a successful institutional placement and share purchase plan, and that contributed all in just over $300 million. And the balance we funded via U.S. private placement, debt funding, and we secured that in late June. Monumental efforts by our internal teams, which I'm very thankful for, And we're very pleased and grateful with the excellent level of shareholder support and lender support we had for this acquisition. And I'm pleased we've been able to lock in long-term financing at very competitive rates. And that was prior to completion and having to draw down, therefore, on an acquisition bridge facility. Now, when we announced the deal, we did flag the effects. So for the equity raise would be about one to two cents diluted to earnings per share. And indeed, that was the case with actual dilution at 1.6 cents. And I've adjusted that from our EPS number of just under 106 cents, which we reported earlier. And lastly, transaction costs in fiscal 24, they were also in line with our guidance at $14 million. And when Neil comes on to guidance, you'll see we have another $10 million or so expected to be booked in fiscal 25. Now, I couldn't wait to get to this slide. It's the cash flow slide. I was bullish coming into the year. And for me, this is one of the best aspects or pleasing aspects of the results. given all the focus and effort our internal teams put into this. And my undying belief that cash is always king in a business. So very pleasing to see this slide. We delivered operating cash flow at just under $168 million. And that's the result, by the way, only surpassed once in the last decade on a full year basis. And that was in the pandemic boosted year of fiscal 20. So an achievement we're very proud of. Cash conversion on an adjusted basis was a healthy 131%. And that was clearly supported by significant working capital release. And we did promise that coming into the fiscal year and included just under $17 million reduction in inventory. And as Neil mentioned, that more than funded the $44 million we incurred in the APIP cash costs. And again, that was very much by design as we conceived that program. And one important point of clarification on this slide, our reported net debt at year end, It included those funds required to settle the KBU acquisition on July 1, and that's why we've included this pro forma net debt movement to account for that timing issue. And then turning on to the balance sheet, again, I'm pleased as always on this balance sheet, it remains in a very healthy condition even after the acquisition. And also that's not because of any, and I want to be clear on this, corporate parsimony or anything that we've implemented here. It's rather, and Neil said this, it's rather our usual careful stewardship of the business. And as Neil said, where we can find sensible investments, we'll absolutely fund those, as you saw with the KBU deal. But adjusting for that acquisition, our pro forma net debt was at 1.8 turns of EBITDA at year end and significantly lower than the 2.3 turns we had at the half year end. And we're able to reduce leverage even quicker than my original expectation because of exceptional second half cash generation. And that's coupled with also proceeds we raised from that share purchase plan as part of the equity raise. And you'll recall those proceeds were not included in any pro forma debt calculations as we announced the acquisition. And as I mentioned on the previous slide, working capital reduced by over $100 million, and that was versus June 2023. The $68 million inventory reduction was due to those planned production slowdowns, and that was further helped by increased shipments in the second half. We also had a large increase in trade payables, which were, I mentioned this last year, they were abnormally low at the end of fiscal 23 when our plants were positioned for lower first half production. And they, of course, reduced their purchases accordingly. Roche, that was marginally lower than fiscal 23 on reduced earnings and it's partially offset by the significant reduction we had in capital employed from that working capital release I just discussed. I think that brings me to the closing part of my update and therefore a few words regarding our ongoing liquidity profile. In March, we refinanced $100 million of senior notes. And in June, obviously, we put in this long-term financing to fund the KBU acquisition. So all in all, that leaves us in a very solid and strong financing position. And I'd say we have a very good spread of long-dated maturities now, and about 62% of our interest is at fixed rates. And that funding security and the headroom it gives us, combined with a very strong cash flow generation, means we still have the ample flexibilities to pursue value accretive investments, both internally and externally. And as they arise, we'll exhaust all those avenues. And if that doesn't occur, we'll always consider other capital allocation options as we progress through the year. And so with that, I'll thank all my colleagues around the Antelope Globe for their absolute monumental efforts in fiscal 24. And once again, a very warm welcome to my new KBU colleagues. And with that, I'll hand back to Neil to discuss the priorities he set for us in fiscal 25.