Brambles Limited

everyone and thank you for joining us for our 2024 half-year results presentation. Today I'll start by providing a summary of our performance in the half, our updated outlook statement and key updates from the Shaping Our Future transformation program. I'll then hand over to Joaquin to take you through our detailed financials. Turning now to the key highlights on slide three. Our first half performance was strong across all aspects of our business. Building on the momentum Putting on the momentum we generated in FY23, we progressed with our transformation program and our financial results delivered in every element of our investor value proposition. Changes in our operating environment, combined with benefits from our transformation, both of which I'll outline in more detail in my presentation, significantly increased pallet availability across our operations, supporting better customer service levels and material improvements in asset efficiency. I'm also very proud of the progress across all aspects of our sustainability programme and our ongoing recognition as a global leader in sustainability. Turning to financial performance, our sales revenue growth of 10% was primarily driven by price realisation through improved commercial terms that better aligned to our cost to serve. The operating leverage achieved in our underlying profit growth of 19% was particularly pleasing, considering the incremental increase in plant and transport costs from higher pallet returns, as well as the investments we continue to make across our transformation programme. The stronger earnings profile, combined with lower capital expenditure and increased compensation for lost assets, significantly contributed to the $303 million increase in free cash flow before dividends. The return on capital invested of 21.8% increased two percentage points, as the strong growth in underlying profit more than offset the increased capital investment in higher-cost pallets to support customers. Finally, the uplift in earnings, our strong balance sheet and continued improvement in cash flow has given us the confidence to declare an interim dividend of 15 cents per share, representing an increase of 22% on the prior year interim dividend. Turning to slide four, I want to provide some more detail on the key operating dynamics we experienced in the first half and outline the anticipated implication for our performance through the balance of the year. Starting with input cost inflation. Overall, we experienced a moderate increase in overall input costs in the half, primarily driven by labour inflation, which drives a large proportion of our plant costs in all regions. Following the extraordinary inflation pressures experienced over the past two years, deflation was seen across lumber, fuel and US freight in the first half. The lower lumber prices have also translated to lower capital cost of pallets, although these still remain above historic levels in all regions. This deflation delivered operating and capital cost benefits in the first half. However, as we go into the second half, we expect deflationary benefits to moderate, as we cycle the prior corresponding period when deflation commenced. Turning to competition, we have seen market share remain stable in an increased competitive environment, as pallet availability improves for other poolers as well as whitewood market participants. We have seen the continuation of two trends noted at the end of FY23, which moderated new business growth in the period. The first is dual sourcing, where certain customers have introduced a second pooler for a small portion of their pallet volumes. The second is lower whitewood pricing, which is increasing the time it takes for SME manufacturers to convert to pooling. Despite this, we remain confident in our competitive advantage and the value proposition of our share and reuse solutions. Turning to pallet availability, we have seen an industry-wide improvement, driven by increased access to lumber and new pallets, as well as inventory optimization initiatives being undertaken by retailers and manufacturers to reduce the elevated inventory levels built up over the last two years. This inventory optimization resulted in approximately 8 million additional pallets returned across our network in North America and Europe in the first half. This is faster than originally anticipated with our original full year forecast of 5 to 7 million returns. We expect a further 5 to 6 million pallets to be returned in the second half, after which we anticipate inventory optimisation to be largely complete. Looking at the implications of these operating dynamics for our business in the first half and through the balance of the year. On pricing, given the fluctuating input costs and pallet dynamics, the work in recent years to better align our pricing with the cost to serve has been critical. It means that as the rate of price growth moderates in line with the cost to serve environment, we continue to deliver value to our customers while maintaining commercial discipline to generate appropriate returns. From a volume perspective, inventory optimization led to a larger than expected impact on organic volumes as manufacturers and retailers continue to draw down on their existing pallets to service demand without replenishing orders. The additional pallet returns, however, improved pallet availability, allowing our businesses in Europe and North America to actively pursue new business. As momentum continues to gather pace, we expect the group to return to positive net new business growth in the second half of this year, driven by new customer wins in these two regions. Operationally, the additional pallet returns have resulted in pallet balances temporarily above our network requirement, which currently requires storage. These additional pallet returns also led to incremental repair, handling and transportation costs, and considering the longer time spent out in the field, have come back more damaged. We expect these incremental operated cost increases to moderate in the second half, as we deploy these pallets to support new customer conversions and replace lost or scrapped pallets. Finally, we expect a pooling capex benefit in FY24 from a reduction of between 13 to 14 million new pallets due to inventory optimization. When combined with the acid efficiency initiatives undertaken to recover and salvage pallets, we expect this to be the primary driver for the pooling capex to sales improvement of between 8 to 10 points in FY24. Turning to the next slide. Taking all of these factors into account and our strong first half performance, we have upgraded our FY24 earnings and free cash flow before dividend guidance, while our revenue outlook remains unchanged. We now expect underlying profit growth of between 13% and 15% at constant currency, and free cash flow before dividends of between $700 and $800 million. Revenue growth of between 6% to 8% remains unchanged, as does our dividend payout policy of 45% to 60%. Joaquin will provide further context on what has driven the revised outlook. We also wanted to provide an update on January trading, which informs and provides context to our outlook for the second half. The trends from the first half continued in January 2024, and we continue to see a slight decline in organic volumes, partially reflecting an adverse impact from inventory optimisation. we continue to achieve modest net new business wins, which includes the benefit of the onboarding and ramp-up of customers converted in the first half of FY24. Inventory optimization continued, with additional pallet returns in January following the Christmas trading period. This has informed our view on inventory optimization in the second half of 5 to 6 million pallets. Finally, our pricing continues to reflect the cost-to-serve environment, and generating an appropriate return on capital. Turning to our transformation program on slide six. We have made good progress across all aspects of the program, which continues to deliver for our customers, support our financial performance, and position our business for future success. After a challenging few years, we are pleased with the improvements to our customer service levels during the period. The many metrics we track are all trending in the right direction, including NPS and on-time delivery in full of our pallets to our customers. We are encouraged by our digital transformation progress to date and the value we have been able to generate through the many solutions implemented and embedded in the organization. We continue to adapt our approach to expanding our digital capabilities as we explore ways to shape the brambles of the future and further build our competitive advantage. I'll go into further detail on our progress this period on slide eight. The improvements we've made to our commercial terms, including better links to inflation and asset efficiency, are allowing us to be more effective at recovering the cost to serve. We've also kept pace with our asset efficiency initiatives, which led to 7.5 million pallets being recovered and salvaged this period. We continue to enhance our asset recovery mechanisms through improvements to our commercial frameworks, identifying collaboration opportunities, and improving our collection engine. Finally, in network productivity, the increase in pallet returns have tested the investments we've made in automation across our service centers in recent years. I'm pleased to say that these investments have made our network more flexible and resilient, with increased capacity to absorb volumes within our existing footprint. This will be further enhanced by the additional 12 automated repair processes we remain on track to deliver in FY24. We've also started on our journey of other efficiency and supply chain initiatives across our network, which aim to make up the expected returns from the 20 sites not being pursued. Turning to the next slide, as you can see from our scorecard, some metrics have already been achieved and most are on track. However, adverse operating conditions, particularly over the past two years, have impacted the progress on some of our metrics. Relating to customer engagement, pallet availability improvements, combined with quality initiatives, drove a significant increase in MPS scores in the first half of 2024, albeit off a low base. Despite this increase, the business remains below target to increase customer MPS by 8 to 10 points by the end of FY25, compared with the FY21 baseline. However, we remain focused on service levels relating to pallet delivery, product quality, and creating a seamless customer experience to meet this target. I don't propose to speak about volume here as it will be covered in the financial section by Joaquin, except to say that the business remains focused on improving new business and organic volumes. Turning to asset efficiency. Notwithstanding improvements this period in asset compensations and loss rates in the Americas, Brown was currently tracking below the target of reducing uncompensated pallet losses by 30% by the end of FY25 compared to the FY21 baseline. We expect further improvements to loss rates through the balance of FY24 and into FY25 to deliver the target through industry-wide improvements in pallet availability combined with multiple asset efficiency initiatives. Finally, in network productivity, despite the benefits from pallet durability initiatives undertaken, pallets have spent a longer time in the supply chain, leading to higher rates of damage. This impacted our target to reduce the pallet damage ratio by 75 basis points year-on-year through FY25. However, as we continue to track our performance against this metric, we can see a significant reduction in damage rates of those pallets where durability initiatives have been undertaken compared to pallets without. Looking at the progress we have made with the various components of our digital transformation on slide 8. We continue to embed our advanced data analytics solutions across the business. As outlined on the slide, they are providing insights that are helping us to improve asset productivity, improve the customer experience, and optimize commercial terms. We're able to collect more assets more efficiently, proactively correct account transactional errors, reduce inventory at retailers, and have a more granular understanding of our cost to serve. The important piece here is that these algorithms continue to improve as we populate the collection model with more and more data relating to recovery activities and interactions with supply chain participants. This should deliver additional accuracy benefits and also be a significant competitive advantage considering the unparalleled scale of our network and the data it generates. We've also made progress with our digital customer solutions that seek to provide customers with unique data and insights to make them more efficient, agile, and sustainable. Of the three digital customer solutions piloted, two have moved into ongoing commercial engagements. While it's still early days, feedback from customers on the pilots suggests there is value for them in having greater visibility of their goods at different points in the supply chain. This is a solution our pooling equipment is uniquely placed to provide as one of the few constants across all points of a modern supply chain. Turning to targeted diagnostics, we have now deployed our autonomous tracking devices in 32 countries where we are undertaking 50 diagnostics concurrently. We are also seeing the benefits of continuous diagnostics, where we have now deployed over 400,000 devices in four countries, including approximately 145,000 devices in the U.S. We remain committed to deploying 300,000 autonomous devices in the U.S. However, the timing of the rollout may be slightly delayed as we wait for the next version of the Ultra device. As an example of what we are learning from our device rollout, we have always known the benefits of targeted diagnostics in identifying potential problems and proving a hypothesis in a specific lane or channel, while continuous diagnostics is better suited to discovering unknown inefficiencies in the supply chain by continually mapping the network. This network map increases in precision over time. and we have started to see the power of combining continuous and targeted diagnostics to not only identify more inefficiencies, but also better diagnose and prescribe comprehensive commercial and operational responses from our frontline teams. Finally, we remain on track in the trial of our serialisation plus proof of concept by tagging the pool in Chile by the end of FY24. With a majority of the pool now tagged with serial codes and with over 50,000 autonomous devices deployed, we've also started to test the viability of new models that can deliver an improved customer experience. We've also started early testing of Serialization Plus at two sites in the UK and North America as we progress feasibility studies in these regions. Importantly, we continue to test, learn, and adapt our approach to deploying autonomous tracking devices, serialized pallets, and a combination of the two. We are now testing and learning how to operationalize these capabilities at industrial scale and maximize the value for these two approaches. Finally, turning to the sustainability highlights for the half. We continue to make progress against our ambitious 2025 sustainability targets, as well as our vision of becoming a regenerative business. In line with our commitment to zero harm, we continue to implement a safety-first strategy and reduce the brambles injury frequency rate to 3.6. There was a two-point improvement in the number of women holding management positions, and we remain on track for our FY25 target of 40%. We also made progress in reducing our emissions ahead of our science-based target path. We maintained our 100% sustainable sourcing of timber this period and also made improvements in our chain of custody certification percentage. Finally, we exceeded our target of 30% recycled or upcycled plastic going into our platforms, which is a testament to the successful integration of sustainability targets into product development. I'd now like to hand over to Joaquin to provide an update on the financials.

Thank you, Graeme, and good morning, everyone. Starting with an overview of our group first half 24 financial results. Bramble's had a strong start to the year, delivering revenue growth in the period of 10% at constant currency and underlying profit growth of 19%. The nine points of operating leverage in the period reflected the flow-through of pricing and commercial terms to recover cost-to-serve increases and transformation-linked productivity gains. These more than offset the incremental costs associated with higher pallet returns and ongoing transformation investments. Profit after tax from continuing operations increased by 14% to constant currency. as underlying profit growth was impacted by higher net finance costs, reflecting higher interest rates on debt and lease renewals, and the non-cash hyperinflation charge of $25 million relating to the impact of currency devaluation on the share capital of Bramble's operations in Argentina and Turkai. The effective tax rate remained in line with the prior comparative period at 30.5%. Turning to revenue growth on slide 12, group sales revenue increased 10% with growth across all regions. This comprised price realisation of 11% to recover cost to serve increases, including an eight percentage point benefit from rollover contributions from pricing actions taken in the prior year. With the balance, three points, reflecting price increases we have taken on contracts renewed in the first half of 24. Like-for-like volumes in the period declined 1%, primarily due to inventory optimisation across retailer and manufacturer supply chains, primarily in North America and Europe. Excluding the impact of inventory optimisations, like-for-like volumes increased 1% as growth with existing customers in the Australian pallets, US pallets and European automotive businesses offset lower pallet volumes in Europe due to softening underlying consumer demand. Net new business growth in the period was flat, as new contract wins in key markets was offset by net losses in the US business, largely due to the rollover impact of contracts lost in the prior year. Looking at group profit analysis on slide 13. Our strong sales growth in the period, combined with operating efficiencies and improved asset control, more than offset cost increases linked to inflation, inventory optimisation and transformation initiatives. North American surcharge income decreased by $29 million at constant currency, in line with lower market prices for lumber, fuel and transport, noted in plant and transport costs. Overall, plant and transport costs increased by $79 million, reflecting inflation of $22 million, primarily related to labour costs, which were partly offset by deflation in lumber, fuel and transport costs. The balance of the increase of $57 million reflected costs associated with quality investments and increased pallet return rates, offset by operational efficiencies. Depreciation increased $30 million, largely reflecting the impact of pallet price inflation on the value of the pool. Pleasingly, for the first time since FY16, we saw an improvement in IPEP expense. which decreased $11 million due to lower pallet losses, primarily in the high-risk, non-participating distributor channels in the Americas region. These improvements were driven by the investments we have made to enhance our collection engine in these channels, as well as increasing collaboration with retailers to improve collections. Other costs increase of $56 million reflected overhead wage inflation and the impact of headcount increases, primarily the rollover impact of hires in the second half of 23 to support growth and the delivery of the overall transformation benefits, with these costs partially offset by higher asset compensations. Lastly, shaping our future transformation costs increased $15 million as higher ongoing transformation costs, including investments in digital, asset productivity and customer service initiatives, were offset by a $13 million improvement following the conclusion of short-term transformation costs in FY23. Turning to the segment result for CHEP Americas. the America segment delivered sales growth of 8% to constant currency, primarily reflecting rollover contributions of pricing actions taken in FY23 to recover cost-to-serve increases. Volumes declined one percentage point in the period as growth in Latin America and Canada was more than offset by the impact of inventory optimisation on like-for-like volumes in the US. Underlying profit increased 24% and margin increased by 2.5 percentage points at constant currency on the strong prior year competitive period, which include deferred cost benefits in the first half of 2023 of approximately $27 million due to lower pallet return rates in the period. Profit growth was a result of pricing and commercial initiatives, improved asset control and increased asset compensations, which more than offset additional costs associated with higher pallet returns due to inventory optimisation and increased investment in asset productivity and other transformation initiatives. Return on capital invested improved 3.4 percentage points at constant currency, driven by the increased earnings partially offset by a 5% increase in average capital invested which reflects the addition of higher price pallets to the pool compared to the value of assets written off. Turning to slide 15 for the revenue profile of the US business. Sales revenue for the US business, which excludes surcharge income, increased 9% with price growth of 11%, reflecting rollover contributions from prior year pricing actions to recover the cost to serve. Contractual price increases in the first half of 24 were largely offset by adverse customer mix impacts, noting that we expect a positive contribution from in-year pricing in the second half. Like-for-like volumes in the period were down 1% due to inventory optimisation at manufacturers and retailers. Excluding this impact, like-for-like volumes increased 1%, reflecting growth in the beverage and protein sectors. Briefly covering historical like-for-like volumes, FY22 and FY23 included the impact of pallet availability challenges, while FY21 benefited from COVID-19-related demand increases. Net new business volumes in the period declined 1% as modest customer wins were more than offset by customer losses of small to medium businesses, primarily rollover contributions from losses in the prior year. Historically, pallet availability challenges due to the supply chain disruptions in FY21 to FY23 limited our ability to pursue new business wins in those periods. However, our team in North America is actively engaging with a strong new business pipeline to deliver volume growth in the second half. Turning to the EMEA region on slide 16. CHEP EMEA delivered sales growth of 11% at constant currency. reflecting price growth of 13%, offset by volume declines of 2%. At constant currency, underlying profit increased 21%, with margins improving by 1.9 percentage points. as the sales flow through to profit, transport and automation efficiencies and higher pallet compensations offset cost increases associated with labour inflation, higher pallet return rates due to inventory optimisation and additional investments to support asset productivity and transformation initiatives. ROSI in the period improved three percentage points as the profit growth more than offset a 7% increase in average capital invested in the period. looking at Chepamea sales growth in more detail on slide 17. Overall sales growth in the region was 11% at constant currency, driven by a pricing growth of 13%, reflecting price realisation across the pallet businesses. Overall volumes decreased 2% as a reduction in like-for-like volumes was partly offset by net new business. Net new business wins were up 1%. largely relating to first-half 24 contract wins across Europe and rollover wins in Central and Eastern Europe and Automotive North America. The business continues to focus on converting its strong new business pipeline to deliver volume growth. Softening demand and inventory optimisation in the European balance business was partly offset by like-for-like volume growth in the Emeta and Automotive Europe businesses. Inventory optimisation impacted like-for-like volumes in the Europe pallet business by a negative one percentage point. Turning to the Asia-Pacific region on slide 18, the pallets business delivered revenue growth of 12% in constant currency, including strong volume growth of 7%, mainly with existing customers in Australia, and price growth of 5%, driven by both current and prior year pricing actions. RPCs and container revenue increased 8% mainly due to the RPC business delivering both pricing and volume growth. Underlying profit increased 5% on a stronger prior comparative period which included benefits that did not repeat in the first half of 24 relating to one-off insurance proceeds of $8 million and deferred cost benefits of approximately $6 million due to lower pallet return rates. Notwithstanding the cycling of these prior year benefits, underlying profit growth reflected sales growth and higher pallet compensations in the first half of 2024, partially offset by costs associated with improved pallet circulation in Australia. ROSI decreased 1.5 percentage points at constant currency, as profit growth in the period was more than offset by the 9% increase in ACI, which included growth in the pallet pool to support customer demand, higher capital costs of assets and supply chain investments. I will now take you through the corporate segment on slide 19. Overall costs in the corporate segment increased $19 million a constant currency, mainly due to a net $15 million increase in Shaping Our Future spend. The increased investment in the Shaping Our Future program was primarily due to an additional $21 million to support the digital transformation, largely relating to additional headcount to support asset digitisation and data analytics activities. Investments in other transformation activities increased $7 million, mainly in relation to customer experience initiatives and supporting the delivery of the transformation. These increases were offset by a $13 million reduction in short-term transformation costs, which concluded in FY23. Other corporate costs increased $4 million, reflecting labour-related cost increases including wage inflation and additional headcount to support group-wide initiatives. Turning to our cash flow performance on slide 20. Pleasingly, the group delivered $116 million of free cash flow after funding increased dividend payments in the half. Cash flow from operations increased $377 million at actual FX rates, mainly driven by higher earnings, decreased capital expenditure and improved compensations for lost assets. Cash capital expenditure decreased $267 million, driven by approximately 10 million fewer pallets purchased in the period as a result of inventory optimisation and benefits from asset productivity initiatives, as well as the impact of lumber deflation on the unit cost of pallet purchases. Movements in working capital and other cash flow items included the reversal of $90 million timing benefits from FY23. Cash flow from significant items and discontinued operations declined $35 million on the prior year comparative, which benefited from the $41.5 million final settlement from First Reserve. The $39 million increase in cash outflows relating to financing costs and tax reflects higher tax payments of $41 million due to increased profits and the timing of U.S. BEAT payments. This was offset by a $2 million reduction in interest paid despite increased financing costs due to the timing of interest payments. Dividend payments increased $41 million with higher dividends per share due to the earnings growth as well as the impact of FX movements. Now turning to slide 21 and the group's asset efficiency performance in the period. The pooling capex to sales ratio, Bramble's asset efficiency metric, improved almost 14 percentage points on the prior corresponding period to 14.4%. This improvement reflects approximately 10 million fewer pallet purchases relative to the prior half, lumber deflation, and the impact of higher revenue. The 10 million reduction in pallet purchases drove a nine percentage point improvement to the pooling capex to sales ratio. This included manufacturer and retailer inventory optimisation of approximately 8 million pallets, or 7 percentage points improvement in pooling CapEx to sales. Asset efficiency initiatives delivered approximately 2 million incremental pallet returns through additional recoveries and remanufacturing activities, resulting in approximately 2 percentage points improvement to the asset efficiency ratio. Lumber deflation resulted in an approximately $90 million reduction in the price of pallet purchases, with group weight at average cost per pallet reducing approximately 17% at constant currency relative to first half 23, delivering approximately 3 percentage point improvement in capex to sales ratio. Revenue growth in the period improved the pooling capex to sales ratio by approximately 2 percentage points. Finally, recognising the impact of lumber prices, demand and the supply chain dynamics on the CapEx to sales ratio, we believe we can sustain a ratio below 17%, which is indicative of our progress on asset productivity initiatives since the 2021 Investor Day. Turning to our balance sheet. The balance sheet remained strong and the business made further progress this period in delivering sustainable free cash flow after fully funding dividends as well as growth and transformation investments. While there is confidence in continuing to deliver on this element of our investor value proposition, we would like to have delivered the FY24 result in addition to the strong free cash flow generated in FY23 before considering potential further capital management initiatives. Turning to our FY24 outlook. To provide some further context for the upgrade guidance which Graeme outlined earlier, I will outline some updated considerations which underpin our FY24 outlook. We continue to expect sales revenue growth of between 6% to 8% at constant currency, which remains unchanged from previous guidance. We expect sales growth for the full year to be driven by price realisation, as FY24 volumes are expected to be in line with FY23. Price realisation is expected to moderate in second half 24 as we cycle higher prior year comparatives. The lower rate of price growth is also expected to reflect improved customer supply chain dynamics, such as better pallet cycle times and reduced losses, which will result in a moderation in pricing linked to asset efficiency. Volume is expected to remain broadly in line with FY23 levels, reflecting a modest year-on-year improvement in the second half, driven by net new wins momentum in our key pallet markets of the US and Europe. We have lifted our FY24 underlying profit guidance to between 13% to 15% growth, with margin expansion in the second half and full year expected in the Group, Americas and EMEA regions. While the underlying profit growth in Asia Pacific is expected to remain flat in second half 24, the full year is impacted by the cycling of one-off insurance proceeds received in FY23. For FY24, we expect additional pallet repair, handling and transport costs across the group in line with higher pallet return rates, labour inflation and continued investments in quality and remanufacturing activity. Deflation across lumber, fuel and US freight observed in first half 24 is expected to moderate in the second half. We continue to expect a reduction in North America surcharge income, albeit at a lower decline than the first half 24 decrease. Improvements to IPEP expense and asset compensations, driven by asset productivity initiatives across the group, are a key contributor to underlying profit leverage and cash flow benefits in the year. Overhead costs, excluding shaping our future, in the second half 24 are expected to increase in line with inflation. A moderation to the first half 24 increase, which included rollover impacts of headcount increases from FY23. Shaping our future costs in the year are expected to be approximately $130 million, including approximately $100 million of spend to support our digital strategy and transformation program. This includes investments to support the transformation in our data analytics capabilities and our smart asset strategy, which continue to deliver commercial and asset productivity benefits. Short-term transformation spend concluded in FY23. Turning to slide 24, which outlines further FY24 outlook considerations. Net finance costs are expected to increase by between $15 to $20 million in the year. We expect a full-year hyperinflation charge of approximately $50 million, though this is subject to prevailing inflation and exchange rates in the second half of the year. The FY24 effective tax rate is expected to remain in line with first half 24. ROSI for the full year is expected to improve, with second half 24 ROSI expectations broadly in line with second half 23 ROSI. We have upgraded our free cash flow before dividends guidance to a revised range of $700 million to $800 million. This uplift reflects our higher earnings and lower CapEx expectations, with an 8 to 10 percentage point improvement now expected in our pooling CapEx to sales ratio for the full year, and lower non-pooling CapEx spend in the year based on revised timing of supply chain and digital investments. The full-year dividend payout ratio is expected to be within our dividend payout policy of 45% to 60% of underlying profit after finance and tax costs, and is expected to be fully funded through free cash flow. Turning to slide 25. Before handing over to Q&A, I would like to take this opportunity to reiterate our commitment to delivering our investor value proposition over the medium term. This includes sales revenue growth in mid-single digits with operating leverage and underlying profit growth in the high single digits. Free cash flow generation through the cycle after fully funding growth and transformation investments, further supporting dividend yield of 2% to 3%. Together with EPS growth in the high single digits, we expect total value creation of over 10% per annum. I will now hand over to the operator for Q&A. Thank you.

If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you're using a speakerphone, please pick up the handset to ask your question. The first question today comes from Reinhard van der Walt from Bank of America. Please go ahead.