Brambles Limited

Thank you for standing by and welcome to the Brambles Limited 2023 full year results briefing. 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. Graham Chipchase, Chief Executive Officer. Please go ahead.

Good morning, everyone. and thank you for joining us for our 2023 full year results presentation. Before getting into the results, I want to draw your attention to our announcement this morning that our current Deputy CFO, Joaquin Gill, will be succeeding Nessa as the next CFO of Brambles. I am delighted Joaquin will be taking on the role and look forward to working with him as we continue to transform the business for future success. I'd also like to thank Nessa for her significant contributions over the years and for her continued focus and energy to the role since announcing her retirement. Turning now to the key highlights from our full-year performance on slide three, I'd like to start by saying that this is an outstanding result for Brambles across all aspects of the business. We delivered revenue growth of 14%, driven by price realisation to recover both operating and capital costs to serve increases. Underlying profit growth of 19%, was driven by contributions from pricing actions, which offset input cost inflation, other cost-to-serve increases, and overhead investments to support growth and transformation benefits. These higher earnings, combined with favorable working capital movements and an increase in other cash flows, were the key contributors to the $398 million improvement in free cash flow after dividends, which was a positive $179.5 million for the year. Our earnings per share growth was strong at 26% and included a two-point benefit from the share buyback program completed in FY22. The uplift in earnings, our strong balance sheet and liquidity position, as well as the return to positive free cash flow in FY23, has given us confidence to declare a final dividend of 14 cents per share, representing an increase of 17% on the prior year final dividend. Total FY23 dividends of 26.25 cents per share represents a payout ratio of 55%, a two-point improvement on the prior year. Finally, our return on capital invested of 18.5% increased 0.5 points, as the underlying profit improvement offset the increase in average capital invested, which was driven by investments in higher cost pallets to support customers. Turning to slide four, During the year, we continued to face macroeconomic uncertainty and cost-to-serve increases, despite some cost pressures and supply chain inefficiencies starting to ease in the second half of the year. Inventory levels across manufacturer and retailer supply chains remained elevated to varying degrees in different markets. Combined with pallet availability constraints in the first half of the year, these dynamics led to longer cycle times, unauthorised reuse of our pallets and higher loss rates, which increased our operating and capital cost to serve in all regions. As anticipated, some progressive destocking occurred in the second half of FY23, leading to approximately 5 million additional pallet returns across our network. These additional pallet returns have provided us with the flexibility to rebuild our plant stock levels, which improves our operational efficiency, replace lost or damaged pallets, service existing customer demand, and pursue new business opportunities. Combined with the asset efficiency initiatives that led to 10 million pallets being recovered or salvaged in the year, we've been able to remove or materially reduce allocation protocols, improve customer service levels in our major markets, and reduce the number of new pallets purchased in the year. In terms of pallet demand, while our primary exposure is to consumer staples, the uncertain macroeconomic environment and the increase in cost of living being felt globally, continue to weigh on demand for our customers' products. Pallet demand was also impacted by destocking as manufacturers and retailers utilise existing inventories to service consumer demand. Turning to input costs, lumber prices, which have been elevated and volatile for a number of years, moderated in all regions in line with easing supply and demand pressures. The cost of new pallets has also begun to moderate in all regions. However, as expected, the group weighted average cost of a pallet in FY23 was higher than the prior year and remains well above historical averages. Lower economic activity has eased pressure on transport and fuel costs, while labour costs, which represent a large proportion of our plant costs, remain elevated with varying degrees of wage inflation across regions. we expect most of the supply chain and cost trends noted in the second half of the year to continue into FY24 and remain confident in our ability to align pricing with the cost to serve and effectively respond to ongoing changes in supply chain dynamics. With this context in mind, I will now outline our financial outlook for FY24 on slide 5. For the year ended 30th of June 2024, we expect... Sales revenue growth of between 6% to 8% at constant currency. Underlying profit growth of between 9% to 12% at constant currency. Positive free cash flow of between $450 and $550 million before dividends. And a dividend payout ratio to be consistent with the dividend payout policy of 45% to 60%. You will see we have moved to guiding to free cash flow before dividends. noting dividends are a capital allocation decision made by the Board. Importantly, we expect dividends to be fully funded through free cash flow in FY24. These financial incomes are dependent on several factors noted on the slide, and Nessa will outline further considerations for FY24 in her presentation. While it is too early to provide a financial update from July Trading, we wanted to provide some context in terms of the operating conditions and trends we have seen over the month of July. The macroeconomic conditions that have created a softer demand environment continue to weigh on volumes with our existing customers. Offsetting this, we have seen some modest net new business wins in our major markets, and our progress to date, combined with the new business pipeline, gives us confidence in our outlook considerations for modest growth in group volumes over the year. The progressive destocking experienced from the second half of FY23 continues to occur, primarily in the United States and in line with our full year expectations. Finally, we continue to price consistent with the cost to serve environment as we aim to generate an appropriate return on capital. Turning to the next slide, we are pleased with the progress made this year across the transformation program. which has supported the strong financial, operational and sustainability outcomes in FY23. These investments are also laying the foundation for the future success of the business. Our digital transformation is delivering value today with advanced data analytics and increasing digital capabilities supporting both commercial and asset efficiency initiatives by providing greater visibility of our assets and a better understanding of pallet flows. These additional insights have enabled more informed, data-driven negotiations and supported better alignment of pricing with the cost to serve. They've also been a key driver of the additional pallets we've been able to recover in FY23. In combination with remanufacturing pallets to reduce scrap, these additional recoveries have contributed to improving pallet availability across our network. which in turn has had a positive effect on customer service levels in our major markets. As I will outline shortly, our smart asset trials and pilots are progressing and informing our approach to deploying and extracting value from these assets for both us and our customers. In network productivity, our automation and durability initiatives continue to increase the efficiency and quality of repairs while adding capacity to our network, which positions us well for future growth. Finally, in customer experience, we continue to progress and refine our service offering. This has been informed by our frequent interactions with customers through surveys and other feedback mechanisms on our service and platforms. We are approximately halfway through our multi-year transformation program, and as you can see from the scorecard on slide seven, there has been good progress made to date across all the streams. However, some of the metrics and measures are tracking below target and have been impacted by market conditions. In customer engagement, while progress has been made in improving our customer experience, our NPS score has been impacted by industry-wide pallet scarcity in FY22 and the first half of FY23. We did see some signs of recovery in the second half of this year, with restored service levels in most markets and overall customer experience enhancements, including better performance on product quality and on-time pallet deliveries. We acknowledge there are opportunities to further improve the customer experience, and this will be an area of focus for us in the year to come and beyond. Net volume growth with existing customers remained challenging during FY23 due to pallet availability constraints in the first half, as well as softness in underlying demand and some progressive destocking. We expect like-for-like volume growth to be subdued in FY24. Our pallet durability initiatives are reducing repair costs, delivering a cumulative 118 basis point reduction in damage rate since FY21. However, this is tracking below our target of 150 basis point improvement on a cumulative basis, as we experienced headwinds associated with higher damage rates as pallets have stayed out in the system for longer due to supply chain inefficiencies. Ongoing durability initiatives, such as new pallet design and other platform innovations, as well as reduced cycle times as pallet availability improves across the industry, are expected to support further damage rate reductions to meet our FY25 objective. Turning to the next slide, I will now provide additional context and pathways for some of the asset efficiency and network productivity metrics which have been impacted by market conditions and are tracking below target. On our target of reducing uncompensated pallet losses by 30%, it has been another challenging year. The cumulative impact of industry-wide pallet scarcity in FY22 and the first half of FY23 led to increased unauthorized reuse of pallets and higher loss rates. we have started to see improving industry-wide pallet availability, which should lead to supply chain efficiencies and therefore lower unauthorized reuse and loss rates. In addition to these industry dynamics, further improvements to our asset productivity initiatives are expected with the deployment of additional asset protection and field resources, as well as the expanded rollout of collection optimization models and the use of small trucks for more frequent recoveries. Moving to the pooling capex to sales ratio, our outlook is for an improvement of between 5 to 7 points in FY24 and an outcome in line with our scorecard targets by the end of this year. We believe this will be driven by a combination of the asset efficiency initiatives, continued progressive destocking, and also improvements in the average pallet price compared with FY23. As outlined at our September 2021 investor day, there are also potential further benefits beyond FY25 enabled by data analytics and digital initiatives. Turning to the rollout of our end-to-end automated repair processes, we have made the decision to revise installations from 70 to 50 sites following a site-by-site return assessment which reflects our discipline in capital allocation. We believe this also demonstrates our ability to adapt, test and revisit our business cases as we continue to learn from each implementation. The FY25 pathway on the page reflects the installation of aqua clippers that remove pallet boards. While we expect to achieve 50 automated end-to-end repair processes, being the combination of the clipper technology as well as an alternator for each plant, this is expected to be completed in FY26. This is predominantly due to supply shortages which require us to phase the installation of the auto nailers. Finally, the expected returns from 20 sites not being pursued will be achieved through newly identified initiatives, including investments to upgrade other plant automation, as well as reconfiguring repair lines to improve efficiency. Looking at the progress we have made with the various components of our digital transformation on slide nine, the advanced analytics solutions we have developed which use algorithms and machine learning capabilities on both existing and new data, are delivering higher than expected benefits. These tools are helping us to reduce losses, improve cycle times, and optimize how we collect our pallets from retailers. We've built confidence in the value creation potential of targeted diagnostics, which are now in use in over 30 markets, with a rolling portfolio of about 50 diagnostics creating insights and interventions that remove inefficiencies from our business and customers' supply chains. We continue to progress with our continuous diagnostics pilots and serialization plus trials, which are providing valuable data and learnings about how to operationalize and manage smart assets across our pallet pool. Like any new technology, there has been a learning curve with scaling and operationalizing the various smart assets. These pilots and trials have provided key learnings which have helped us adapt our approach to deploying and extracting value from smart assets as we develop our pallet identification, tracking and analytical capabilities. In continuous diagnostics, our pilots in the UK and North America are providing further insights into the value of real-time visibility of the pool and how we can optimize the performance of smart assets once they have been deployed. Learnings from these pilots will determine the feasibility of scaling in Europe further. We expect to complete our Serialization Plus proof of concept in Chile during FY24, as well as determine the ability to scale operationally and determine the value this technology can potentially provide in other markets. While this proof of concept is being completed, local feasibility studies are underway to determine the rollout viability of Serialization Plus in the US and the UK, should the Chile pilot prove successful. These involve analysing the learnings from Chile and reviewing local operating conditions, as well as some early installation of service centre equipment. These initiatives have informed the FY24 digital transformation OPEX of approximately $110 million and CAPEX of approximately $60 million to generate further asset efficiency, commercial and customer value benefits. We will provide an update on the outcomes of the various digital pilots and trials, as well as future investment requirements of our digital transformation at our 2024 Investor Day, which will take place in the first half of calendar 2024. Finally, turning to the sustainability highlights for the year. FY23 was another step towards our ambitious 2025 sustainability targets, as well as our vision of becoming a regenerative business. We have a strong safety culture at Brambles and we are proud of the progress made against our injury frequency rate, which reduced 8% year on year. There was a three points improvement in the number of women holding management positions and we remain on track for our FY25 target of 40%. We made meaningful progress towards our forest positive target to enable the sustainable growth of two trees for every tree we used, having facilitated the sustainable growth of 3.85 million additional trees during the year in South Africa. We also made progress towards our 2030 science-based targets with a 5.2% reduction across scope 1, 2 and 3 emissions in FY23 compared to FY22. This year we also raised 500 million euros through our first green bond finance offering. The Brabbles Green Bond is the first by an Australian company to be fully dedicated to the circular economy, reflecting the company's leading position as a circular business pioneer through its share and reuse pooling model. Finally, our progress was recognised externally through positive ESG assessments during the year, many of which were industry-leading. These assessments cover many aspects of our sustainability program, demonstrating excellent performance against our most material ESG goals. I'd now like to hand over to Nessa to provide an update on the financials.

Thank you, Graham, and good morning, everyone. Starting with an overview of the strong FY23 results, as Graham mentioned, sales revenue growth was strong at 14%, with pricing and efficiencies offsetting cost increases to deliver operating leverage and underlying profit growth of 19%. Underlying profit included other income of 319 million, which increased 12% at constant currency, largely driven by higher compensations for lost assets. Profit after tax from continuing operations increased by 18% at constant currency, reflecting increased finance costs due to both higher interest rates and higher average net debt, following the completion of the share buyback program at the end of FY22. The effective tax rate also increased by half a percentage point due to increased beat costs in the U.S. and the mix of earnings. The hyperinflation charge of $19 million relates to the devaluation of Bramble's investments in Turkey and Argentina, while profit from discontinued operations of $56.2 million reflects the gain on divestment of CHEP China, which is recognized as a discontinued operation following the completion of the merger with LOSCOM Greater China in March 2023. Turning to the revenue growth on slide 13, group sales revenue increased 14% at constant currency, driven by strong pricing in all regions to recover both operating and capital costs to serve increases. Group volumes declined by 2%, as net new business growth of 1% was offset by a decline in like-for-like demand. Net new business growth reflected rollover contributions from prior year contract wins in the European pallet business, and to a lesser extent, customer conversions in the second half, as improved pallet availability allowed the business to recommence pursuing new contracts. Like-for-like volume declined 3% due to a combination of pallet availability challenges in the first half, lower underlying demand during the year in both the European and the US pallet businesses, and some reduction of inventories across global supply chains in the second half. Looking at the group profit analysis on slide 14, sales growth contributed to 815 million to group profit which offset the impact of cost inflation and other operating cost increases in the period. North American surcharge income decreased by 7 million due to falling lumber prices partly offset by higher contributions from fuel and transport surcharges. Plant costs increased by 226 million reflecting input cost inflation of 139 million as well as quality improvement initiatives and additional repair costs associated with the remanufacturing of pallets that would otherwise have been scrapped. These costs were partly offset by efficiency benefits from automation and other supply chain initiatives in the US and Europe pallets businesses. Transport costs increased by 93 million and included 46 million of fuel and transport inflation, as well as increased activity costs to recover pallets as part of our asset efficiency initiatives. Noting that in the first half of the year we called out 35 million of timing benefits from lower pallet return rates, this timing benefit largely unwound in the second half of the year. Depreciation increased 73 million, largely reflected growth in the pallet pool and the impact of pallet price inflation on pallets purchased in FY22 and FY23. IPEP expense increased 56 million due to higher pallet losses driven by supply chain dynamics, including longer cycle times and pallet scarcity leading to unauthorized reuse and theft of pallets, largely in the U.S. and to a lesser extent in Europe. Other cost increases of 185 million reflected overhead investments across the group to support growth and the delivery of the overall transformation benefits, with these costs partly offset by higher asset compensations. We also had a net 5 million increase in transformation costs, driven by a reduction in short-term transformation costs of 26 million offset by the 31 million increase in ongoing transformation costs which includes investments in digital, asset productivity and customer service initiatives. Turning to the segment results and starting with CHEP Americas. The Americas segment delivered sales growth of 14% at constant currency with operating leverage. Revenue growth reflected strong pricing growth to recover cost to serve increases with volume declines in the U.S. and the containers business only partly offset by new customer wins in Latin America. Underlying profit increased 19% at constant currency and margins increased by 0.7 points, reflecting strong sales flow-through to earnings and efficiency gains, which offset plant and transport cost inflation, additional asset recovery and remanufacturing costs, higher asset loss charges and overhead investments to deliver transformation benefits. Return on capital invested also improved by 0.7 percentage points at constant currency driven by the increased earnings partly offset by a 14% increase in average capital invested which reflects the addition of higher price pallets and overall investment in the pallet pool to support longer pallet cycle times and to replace lost and scrapped assets. Turning to slide 16 for the revenue profile of the U.S. business. Sales revenue for the U.S. business, which excludes surcharge income, increased 13% with pricing growth of 18% reflecting rollover contributions from prior year pricing actions and additional pricing initiatives to recover operating and capital cost inflation as well as longer cycle time costs. Like-for-like volumes in the period were down 5% due to pallet availability constraints, particularly in the first half of the year, and weakness in underlying customer demand, which was further impacted by inventory destocking in the second half. Like-for-like volumes improved in the fourth quarter to a decline of 2%, compared to the first nine months' run rate of a 6% volume decline. Net new business volume was in line with the prior year, with pallet availability challenges restricting the ability to target new business in the first half. With improved pallet availability in the second half, the business recommenced targeting new business growth with modest customer wins. Turning to the EMEA region on slide 17, Chepamea delivered strong sales growth of 14% at constant currency. At constant currency, underlying profit increased 18%, with margins improving by 0.9 percentage points as the sales flow through to profit and higher pallet compensations offset the impact of input cost inflation across plant and transport and increased overhead investment in additional resources to support future growth and to deliver transformation benefits. Looking at CHEP and MIA sales growth in more detail on slide 18, overall sales growth in the region was 14% at constant currency, driven by pricing growth of 14% to recover cost-to-serve increases, including the impact of lumber inflation on the capital cost of pallets. Overall volumes were flat year-on-year. Net new business wins were up 3%, largely relating to rollover from prior year contract wins in the European pallet business and some modest new customer wins in the second half of the year. The business continues to focus now on converting its strong new business pipeline to deliver volume growth. Like-for-like volumes in the region declined 3% in the year, with a 4% impact from the decline in the pallets business due to softening demand and de-stocking in the European market and this was partly offset by one point volume growth contribution from the automotive businesses. Turning to the Asia Pacific region on slide 19, the business delivered revenue growth of 11% in constant currency driven by both pricing and volume growth in the pallets business and growth with existing customers in the Australian RPC and containers businesses. underlying profit growth of 15% included an 8 million one-off income in the year from Australian flood insurance proceeds. Excluding the one-off benefit from insurance proceeds, underlying profit increased 10% at constant currency as sales growth and automation efficiencies in the Australian RPC business offset the impact of plant and transport cost inflation, increased damage rate due to longer cycle times, and increased overhead, mainly relating to higher employee costs. ROSI increased 1.1 percentage points at constant currency. Excluding the one-off insurance proceeds, return on capital invested decreased by 0.3 percentage points, driven by the 11% increase in the average capital invested, reflecting the additional investments in pallets to support higher inventory balances and also to support demand across Australian supply chains. I'll now take you through the corporate segment on slide 20. Overall costs in the corporate segment increased $21 million in constant currency due to a $16 million increase in corporate costs reflecting labor-related cost increases including wage inflation and a $5 million increase in shaping our future spend. Now turning to slide 21 and the group's asset efficiency performance in the period. The pooling capex to sales ratio, which is Bramble's asset efficiency metric, improved by 6.4 percentage points in the period to 23.4%. This exceeded our expectations for a three to four point improvement, which we guided to for the year. The improvement reflects both the strong revenue growth and approximately 8 million fewer pallet purchases relative to the prior year, and is despite an increase in the full-year weighted average pallet price with year-on-year pallet price inflation of around 4% or 60 million. The capex benefit of lower demand was offset by additional pallet purchases to support some cycle time increases, replace lost assets and to rebuild plant stock balances across our networks which are now at healthier levels. The improved plant stocks support both operational efficiencies and enable the regions to target new business growth. The reduction in pallet purchases, despite these factors, was enabled by asset efficiency benefits which delivered 10 million pallets through additional recoveries and remanufacturing activities. which was an increase of 6 million pallets compared to FY22. Other factors which contributed to lower pallet purchases included manufacturer and retailer inventory reductions, which delivered approximately 5 million additional pallet returns across the network, and cycling additional purchases in FY22 to support substantial increases in pallet cycle times. In FY24, we expect the pooling capex to sales ratio to improve a further 5% to 7% through continued benefits from asset productivity initiatives, further progressive destocking across global supply chains, and moderating lumber costs and pallet prices across the group. Despite the significant and unanticipated market headwinds experienced since FY21, when we set our FY25 target of 17% capex to sales ratio, we remain on track to deliver our FY25 pooling capex to sales targets of around 17%, and we expect to be in and around 17% to 18% pooling capex to sales range in FY24. Turning to our cash flow performance on slide 22, pleasingly, the group delivered $180 million of free cash flow after funding increased dividend payments during the year. Cash flow from operations increased by $398 million at actual FX rates, mainly driven by higher earnings and favorable working capital and other movements. Cash capital expenditure increased $34 million despite $8 million fewer pallet purchases in the period. Due to cash outflows in FY23, relating to the abnormally high prior year capex creditor balance driven by both the timing of pallet purchases in FY22 and the elevated pallet prices in the second half of last year. The working capital increase largely reflected lower inventory holding in North America and timing of payments across the group. Other increase of 68 million reflects the impact of revenue growth on deferred revenue and higher employee benefit provisions. Approximately 90 million of these favorable working capital and provision movements are expected to reverse in FY24. These cash flow timing benefits in FY23 were more than offset by the cash outflow related to the reversal of prior year CapEx creditors, which included over 100 million of lumber inflation impacts on pallet purchases in the fourth quarter of 22, but paid for in FY23. The $56 million increase in cash flow from discontinued operations includes the $41.5 million final settlement from First Reserve. The balance of the increase relates to lower net operating cash outflows from CHEP China, which is recognized in discontinued operations following the merger with LOSCOM Greater China in March 2023. the 42 million increase in cash outflows related to financing costs and tax were driven by the factors outlined earlier. Dividend payments increased 14 million on the prior year with higher dividends per share due to both the strong earnings growth and the impact of the share buyback program completed in June 2022. Turning to our balance sheet, the balance sheet remains exceptionally strong with high levels of liquidity. As at year end, the group had 1.8 billion of undrawn committed bank facilities and cash balances of 161 million. In March 2023, Brambles issued a Euro 500 million eight-year green bond to cover the repayment of the Euro 500 million bond maturing in June 2024. We continue to maintain a strong investment grade credit rating with financial ratios remaining well within the ratings headroom and our policies. Turning now to FY24 and our guidance, which Graham outlined earlier, and some key input considerations. We expect high single-digit revenue growth of 6% to 8% with operating leverage and positive free cash flow to fully fund dividend payments. We expect sales growth to be weighted to pricing, albeit at a lower rate of increase relative to FY22-23, reflecting some moderation in inflation. The pricing assumption includes rollover contributions from FY23 pricing. In terms of volume, we expect modest growth in the group volume weighted to the second half of the year as new customer conversions in key markets are expected to be partly offset by subdued demand from existing customers driven by economic uncertainty and retailer and manufacturer inventory rightsizing, which we expect to continue across FY24. We also expect to deliver another year of operating leverage with margin expansion across the Americas and EMEA regions, in part offset by Asia Pacific as the business cycles the one-off insurance proceeds from FY23. Additional plant and transport costs are expected across the group, in line with higher pallet return rates, increases in labour inflation and continued investment to improve pallet quality and reef manufacturing rates. The higher return rates are, however, expected to support lower loss rates and other efficiency benefits. The North America surcharge income is expected to decline year on year, reflecting anticipated reductions in market rates for lumber, fuel and transport. Overhead costs across the group, excluding shaping our future costs, are expected to increase in line with inflation. FY23 was the final year for short-term transformation costs, with ongoing shaping our future operating costs expected to be around 140 million compared to 88 million in FY23. This spend largely reflects digital transformation costs of $110 million to support the expansion of data analytics capabilities across the organisation and the smart asset strategy that's expected to support improved customer value delivery and asset efficiency benefits. Net finance costs are expected to increase by between $15 and $20 million and the effective tax rate is expected to increase by 0.4 points on FY23 levels. Overall, ROSI is expected to be broadly in line with FY23 levels. Turning to the free cash flow, we expect positive free cash flow before dividends of between $450 and $550 million as asset productivity initiatives, continued inventory rightsizing, and moderating lumber prices expected to result in a 5 to 7 percentage point improvement in the group's pooling capex to sales ratio. The level of underlying improvement in the capex to sales ratio is dependent on a number of unknown factors, including lumber and pallet pricing, destocking and the rate of reduction of inventory levels and flows across global supply chains, and other productivity improvements in the asset pool. Non-pooling capex is expected to increase by about 150 million, driven by supply chain projects, including high returning automation programs and digital investments of around 60 million, largely relating to investment in smart assets to generate further asset efficiencies, commercial and other customer value benefits. Digital investments are stage-gated based on successful outcomes of trials and pilots. We expect to see the reversal of 90 million of FY23 cash flow timing benefits relating to working capital and other provision balances as outlined on the cash flow slide, and the non-repeat of the first reserve one-off proceeds. In line with FY23, cash flow is expected to be weighted to the second half of the year. The dividend payout ratio factored into the outlook is assumed to be consistent with our dividend payout policy of 45% to 60% of underlying profit after finance and tax costs in U.S. dollar terms. We expect to fund dividend payments in the year through free cash flow. In closing, we delivered strong financial outcomes this year with double-digit sales growth, underlying profit leverage, and a return to positive free cash flow generation after funding increased dividends. Importantly, we also improved pallet availability, increased customer service levels, and continue to strengthen our global leadership position in sustainability during FY23. Our transformation program continues to progress and enabled our strong operational, financial and sustainability performances this year. In combination with our strong balance sheet, this positions us well and sets us up for future successes, which is reflected in our FY24 guidance range, where we expect to deliver revenue growth with operating leverage and positive free cash flow generation. Thank you. And I'll now hand over to the operator for Q&A.