Brambles Limited

Good morning everyone and welcome to Bramble's full year results presentation for the 2026 financial year. I'll start with an overview of our FY26 performance, including financial highlights and our key areas of focus this year. I'll then cover the operating environment and our response to the repair capacity constraints that emerged in our US business during the fourth quarter. I'll also provide an update on Brambles of the Future and Serialisation Plus before handing over to Joaquin for a more detailed view of our financial performance. Let's start with a review of the highlights for FY26. We delivered a resilient financial result while advancing the customer, operational and sustainability initiatives that strengthen our long-term competitive advantage. For the full year, revenue increased 2%, reflecting strong new business growth across the group and price realisation. These increases more than offset lower like-for-like volumes from softer consumer demand in most regions. Underlying profit increased 4%, including a US$90 million adverse impact associated with US repair capacity constraints. Excluding the US repair capacity impact, underlying profit increased 11%, with price realisation, cost management initiatives and productivity improvements more than offsetting inflation and strategic investments across the group. Free cash flow before dividends exceeded US$1 billion for the second consecutive year, demonstrating the progress we have made in reducing the capital intensity of the business. This supported the 16% increase in total dividends declared for FY26 to US$46.15 per share. Together with the US$509 million of share buybacks completed in FY26, this brought the total cash returns to shareholders to approximately US$1.2 billion for the year. These financial outcomes demonstrate the benefits of our transformation over recent years and reinforce the importance of continuing to build the capabilities that strengthen our business and underpin the next phase of value creation. During the year, we maintained our focus on what matters most to our customers, improving their end-to-end experience and investing to deliver the quality service and insights they need. In the US, we prioritized our customers by making the necessary investments to improve service levels and strengthen the network. We also continue to modernize our network with automation and digital initiatives underway to improve resilience and efficiency while reducing the overall cost to serve. Finally, we launched our 2030 sustainability program, marking the next phase of our ambition to create regenerative supply networks. The programme is focused on delivering nature-positive outcomes and strengthening the communities and economies we serve. Turning to the FY26 operating environment, which was characterised by persistent inflationary pressures, subdued consumer demand and continued new business momentum in key markets. Labour costs increased in all regions and were particularly pronounced in the US, where competition for blue-collar workers increased significantly in a tightening labour market. Fuel and transport costs also rose significantly in the second half of the year, largely owing to the Middle East conflict. Transport inflation in the US was further compounded by driver shortages, with significant increases in spot rates for transport during the fourth quarter. Although lumber prices varied by region, the weighted average capital cost of our pallets increased by 4% on FY25, largely due to the higher proportion of pallets purchased in the US market. In response to these inflationary pressures, we have maintained commercial discipline, recovering input cost increases through a combination of contractual pricing, indexation and surcharge mechanisms. In Europe and Latin America, we have also introduced fuel surcharges and other pricing mechanisms to reduce the lag in recovering fuel cost increases. In addition to strengthening commercial terms, we have continued to focus on productivity improvements and cost efficiencies to reduce cost to serve increases and deliver better value for our customers. On the demand side, cost of living pressures and macroeconomic uncertainty continue to weigh on consumer demand, particularly in our larger markets of the US, Europe and Latin America. In the US, we saw a sharp increase in customer demand in Q4 ahead of consumption events, including the FIFA World Cup, while in Australia, inventory optimisation across retailer and manufacturer supply chains contributed to a lower pallet demand in the year. To offset lower underlying demand from existing customers, we have continued to drive new business growth in key markets, with momentum supported by enhancements to our customer value proposition, stronger sales capabilities and tightening supply of high-quality whitewood pallets, particularly in the US and European markets. We also continue to see higher levels of automation across manufacturer and retail supply chains, increasing the need for consistent, high-quality pallets. This reinforces the importance of the investments we've been making in automation, digital and repair consistency initiatives to meet our customers' evolving needs and boost the long-term resilience of our network. Turning now to the repair capacity constraints that emerged in parts of our US network during the fourth quarter. As outlined on the slide, these constraints were not the result of a single factor, but rather reflect the convergence of several issues in the fourth quarter. As you will see on the slide, one of the contributing factors have since been resolved. Others are improving and a few continue to feature in our operating environment. Among the ongoing factors are the quality initiatives we have been implementing over the past two years to support increasing levels of automation in customer and retailer supply chains. These initiatives include additional repairs, enhanced quality audits, and more recently, the rollout of end-of-line inspection equipment to improve repair consistency across our network. While strategically important, this focus on repair consistency increased the number of component repairs required per pallet, reducing repair throughput at certain sites in our network. From April, this planned activity coincided with a number of unexpected developments within our subcontractor network and the broader operating environment. This included the tightening labour market in the US, which remains an ongoing challenge and continues to be an area of focus. With the availability of labour declining, it became more difficult to attract and retain service centre staff across our network, which further reduced repair throughput, with some repair benches not being fully utilised. At the same time, we experienced turnover in our subcontractor base, with two operators in the northeastern and central regions of the US choosing to exit the network due to service center management being non-core to their business and challenging operating conditions. Although all 15 affected sites remained operational, repair throughput was below optimal levels. A transition plan is now in place for these affected sites, and importantly, there have been no further subcontractor exits from our network. These pressures then coincided with higher than expected customer demand in the fourth quarter, which has moderated since July. Individually, each of these factors would have been manageable within the normal course of operations. However, occurring simultaneously, they created temporary repair capacity constraints in parts of our US network and disrupted our ability to fully meet customer demand and onboard new business. In response to this, we increased pallet relocations across our network to meet customer demand. As these relocations were unplanned, we had to rely on significantly higher spot transport rates, which increased the costs of moving pallets to customers in the fourth quarter. We expect unplanned relocations to reduce as repair capacity constraints are resolved through the first half of FY27. The repair capacity constraints and flow-on effects resulted in a negative earnings impact of US$90 million, together with US$40 million of additional pooling capex associated with new pallet purchases. Joaquin will provide a more detailed breakdown of these financial impacts shortly. Moving to the next slide, which outlines the actions we are taking to resolve repair capacity constraints by the end of the first half of FY27 and strengthen customer relationships as network performance continues to improve. Since these constraints emerged, our immediate priority has been to restore service levels for our customers. To do this, we have focused on improving pallet availability and increasing repair capacity across the network. The actions on this slide are primarily short-term measures designed to support customer demand and restore service performance, while we implement initiatives to structurally increase network capacity and resilience. To increase repair capacity, we have introduced additional shifts and overtime at existing service centres and increased rates to attract and retain labour across our network. We have also developed an orderly transition plan for the sites affected by subcontractor turnover. To improve pallet availability in the short term, we have increased pallet relocations across our network and invested in new pallet purchases, adding 1.3 million pallets in the fourth quarter and expecting to add another 2 million during the first half of FY27. Importantly, these actions are already delivering results as we return back to normal service levels with no missed customer orders since mid-June. This improvement reflects increased pallet availability from new pallet purchases, lower customer demand from peak levels, and early improvements in repair capacity. As operational performance continues to improve, we are also focused on strengthening our customer relationships and re-accelerating growth. This includes delivering consistently on our customer value proposition, restarting new business conversions and providing additional sources of value to customers, including through our digital offering. Having addressed the immediate actions to restore service levels, this slide outlines the initiatives underway to structurally increase network capacity, strengthen resilience and provide the headroom required to support our growth ambitions. Within our subcontractor network, we are progressing the transition of 15 service centres with three sites already transitioned to new subcontractor management in the fourth quarter of FY26. We expect the remaining 12 sites to transition primarily to subcontractors by the end of FY27 and can confirm there have been no further subcontractor exits from our network since April. As part of this transition process, we will take the opportunity to diversify our subcontractor base and reduce concentration across the network. We are also revising our strategic approach to subcontractors towards value sharing relationships that better support our safety, quality and productivity priorities. Initiatives are also in place to expand repair capacity by FY28. As shown on the chart, we expect to increase repair capacity by about 20% against the FY26 baseline, supported by additional capacity at existing service centres and eight new service centres added to our network. These new sites will include a mix of subcontractor and CHEP operated facilities, providing greater flexibility across the network. The eight new service centres are expected to require total investment of around US$25 million, which remains comfortably within our existing medium-term non-pooling CAPEX guidance of US$200 to 300 million per annum, excluding investment in Serialisation Plus. Beyond FY28, we will continue expanding repair capacity in line with our growth expectations, while maintaining sufficient headroom to support future demand and operational stability. Automation and technology will also play an important role in improving agility and throughput across the network. This includes progressing our Service Centre of the Future programme towards touchless repair and using AI and machine learning to improve demand planning, collections processes and capacity management across the network. Finally, we are establishing specialist teams that can be deployed quickly during operational challenges and network disruptions, improving our ability to respond and sustain customer service levels when issues arise. Taken together, these initiatives will help ensure the US business is better positioned to support customer demand, capture future growth opportunities, and respond more effectively to operational disruption. We continue to see quality as a key source of competitive advantage in the US market and an increasingly important differentiator as customer and retailer supply chains become more automated. You will see that we have a broad range of initiatives underway, focused on repair consistency and pallet durability. Together, these initiatives are designed to ensure our pallets meet the tighter tolerances required in an automated environment while maintaining pallet performance across customer supply chains and reducing repair intensity over time. I don't propose to go through every initiative, but we are confident we have the right roadmap to meet our customers' evolving needs. Two particular highlights are the rollout of end-of-line inspections to cover 50% of repaired volumes by the end of FY28, as well as the adoption of more rigorous quality measures. Looking further ahead, the experience of the past several months has underscored the importance of the investments we are making to move towards a touchless plant through our Service Centre of the Future programme. Beyond quality benefits, this has the potential to improve safety and efficiency and reshape how our network operates. During the year, we took the next step in this programme by signing a lease for the facility that will be our global automation and technology centre. From this dedicated hub, our teams will develop and test technologies with a view to rolling out modular automation solutions in the next three years, with the potential for a fully touchless plant thereafter. Importantly, we expect to fund these quality initiatives within our existing non-pooling CapEx framework, while still targeting to deliver our investor value proposition of total value creation of more than 10% per year over the medium term. Let's now turn to brambles of the future. During this first year under our new strategy, we have made meaningful progress across each strategic priority. Starting with our customers, we continue to improve their experience by reducing the complexity involved in their interactions with us. Upgrades to the MyChat portal have now allowed customers to more easily track and manage their queries. Notwithstanding the challenges in the US, this focus on the customer experience has seen us continue to increase both our NPS and collection metrics across the group. Next, as part of our work to illuminate supply networks, FY26 saw us continue to develop our portfolio of digital customer solutions towards standardised approaches that support scaling for customers. This includes two of our flagship products, end-to-end quality assurance and promo insights, which generate actionable insights for customers to protect product quality through temperature monitoring and to improve promotional execution. We have now expanded DCS pilots in multiple markets with growing retailer engagement and advocacy also helping to identify and convert customers to recurring subscriptions. Turning to operational excellence, we achieved a 10% improvement in our safety performance as measured by lost time injury frequency rate. We are proud of the safety culture we've built, which has driven successive years of improvements and delivered our best ever safety performance. We also continue to drive operational improvements through network optimization initiatives, together with the rollout of standardized operating procedures across our service center network. We are pleased to have made early progress against our 2030 sustainability targets. This included initiating regeneration activities across approximately 10,000 hectares through partnership with Wild Trust in South Africa, with the aim to protect and manage 75,000 hectares during our five-year programme. In decarbonisation, we remain ahead of the minimum requirements of our 2030 science-based target trajectory. our Scope 1 and 2 emissions decreased by 5% as a result of ongoing electrification of forklift trucks and fleet vehicles. Scope 3 emissions were 1% higher in FY26 due to new pallet purchases in the US and increased downstream transport emissions resulting from pallet relocations. Finally, we established a baseline Employee Experience Index score of 87 out of a possible 100, providing a new measure of our progress in strengthening diversity, equity and inclusion across our organisation. We'll move now to Serialisation Plus, with an update on our rollout in Chile and the work underway to inform our decision on a potential rollout in the US. During the year, we reached an important milestone in Chile, with all customers now benefiting from the Effortless Service Offer. This offer has significantly reduced customers' administrative burden, which was reflected in the 9-point increase to our Net Promoter Score in FY26. In addition to improving the customer experience, we have seen benefits to growth, with the Effortless Service Offer contributing to 15 net new customer wins and lane expansions. As the rollout in Chile has matured, Serialization Plus continues to demonstrate additional sources of value. These include improved visibility of pallet movements, greater insight into network inefficiencies, and increased opportunities to monetize pallet reuse and other non-compliant flows. Although we are confident in the multiple sources of value, there are still some key areas we want to understand more fully before deciding on a potential rollout in the US. The most important of these is understanding the customer response to dynamic pricing. We're also excited about the opportunities to explore how serialization data can be used to improve network efficiency and customer outcomes, including identifying drivers of higher damage rates, longer dwell times, and other cost to serve opportunities across the supply chain. Finally, we continue to focus on reducing the cost of implementation through lower cost tracking technology and improved tagging solutions. we remain on track to communicate a decision on a US rollout in the third quarter of FY27. Looking ahead to FY27, we expect it to deliver underlying profit growth and strong free cash flow as we resolve our operational challenges in the US during the first half. For the full year, we expect sales revenue growth of 2% to 4%, with underlying profit to increase 2% to 6%. Our outlook for cash flow generation before dividends is in the range of US$800 to US$950 million. And we expect our dividend payout ratio to remain within our payout policy of 50% to 70% of underlying profit. Together with the additional US$400 million on-market share buyback announced in May, we continue to target total value creation of 10% for shareholders in line with our investor value proposition. I'll now hand over to Joaquin to take you through our financial performance in greater detail.

Thanks, Graeme, and good morning, everyone. Starting with the financial highlights on slide 15. In FY26, we delivered volume growth, expanded margins and generated strong free cash flow while managing the impact of repair capacity constraints in our US business. We achieved strong net new business growth of 3% and continued to recover input cost inflation through price realisation. These, together with productivity improvements and cost management initiatives, delivered underlying profit growth of 4% and margin expansion of 0.6 percentage points after the $90 million underlying profit impact associated with US repair capacity constraints. Excluding these impacts, underlying profit increased 11% and margin expansion was 1.8 percentage points. We maintained the structural improvements in asset efficiency achieved in recent years, which supported free cash flow generation of more than $1 billion. As a result, we delivered total value creation of 9% for the year, comprising 6% EPS growth from continuing operations and a 3% dividend yield. Turning now to slide 16 for the overview of our full year results. I will focus on profit after tax and EPS, with revenue and underlying profit covered in the slides that follow. Profit after tax from continuing operations increased 5%, ahead of underlying profit growth of 4%, as lower net finance costs more than offset the impact from higher tax expense and the increased hyperinflation charge. Our underlying effective tax rate of 29.3% is broadly in line with FY25. EPS growth from continuing operations increased 6%, including a 2 percentage point benefit from the on-market share buybacks completed in FY26. Finally, our disciplined approach to capital allocation and focus on productivity improvements resulted in ROSI increasing 0.4 percentage points to 22.6%. Moving to slide 17. Before stepping through revenue and underlying profit in more detail, I want to take a moment to outline the impact of US repair capacity constraints on our underlying profit performance. As noted earlier, the impact of US repair capacity constraints reduced underlying profit growth by 7 percentage points this year, with an underlying profit impact of $90 million. This primarily reflected short-term revenue and costs associated with pallet availability constraints and the actions we have taken to increase pallet availability and increase repair capacity across our network. Starting at the top of the P&L, revenue impacts reduced ULP by $25 million. This reflected a $45 million reduction in revenue driven by our inability to fully service customer demand together with an adverse customer mix impact on price realisation. From a cost perspective, we incurred an additional $20 million of plant costs associated with the extra shifts, overtime and incentives we have introduced to increase temporary repair throughput while we structurally increase repair capacity across the network. Transport costs increased $35 million as we relocated more pallets to access available repair capacity in our network and meet customer demand. These unplanned movements increased our reliance on the spot transport market, which experienced significant inflation in the fourth quarter. Finally, IPEP expense increased by $10 million, as pallet scarcity led to higher levels of unauthorised reuse of our pallets in customer and retailer supply chains. This $90 million earnings impact was $30 million higher than the expectations we outlined in our May trading update, in part driven by actions to accelerate customer service improvements, including $15 million of additional pallet relocations. Turning to slide 18 and looking at the incremental year-on-year impact, we expect US repair capacity constraints to have an underlying profit in FY27. We've separated these impacts into two categories. The first relates to short-term costs associated with the actions already underway to increase repair capacity and improve pallet availability. These costs are largely temporary and are expected to unwind as the constraints are resolved by the end of the first half. The second category relates to structural increases in supply chain costs, reflecting investments we are making to structurally increase capacity and strengthen the resilience of our network. Starting with the short-term costs, we estimate a $10 to $20 million adverse year-on-year impact to underlying profit in FY27. In the first half, this impact is expected to be between $70 to $80 million and primarily driven by the same plant, transport and uncompensated asset loss impact that affected our performance in fourth quarter of FY26. We also expect a negative year-on-year revenue impact reflecting lower volumes and some residual adverse price mix. As repair constraints are resolved, these impacts are expected to reduce progressively through the first half, resulting in an estimated year-on-year benefit of $55 to $65 million in the second half, as we cycle the elevated costs incurred in the fourth quarter of FY26. This improvement reflects a recovery in volumes and associated customer mix benefit, as well as reduced reliance on overtime and additional shifts, lower pallet relocations and spot transport rates, and lower IPEP expense as pallet availability improves. Turning to the ongoing investments we are making to build greater resilience into the network. These will see a structural increase in supply chain costs, primarily associated with higher labour rates in response to inflation, additional repair capacity across our network, the specialist resources to manage any potential future disruptions and depreciation on incremental pallet purchases. These costs are expected to reduce FY27 earnings by $25 to $35 million, with the impact recognised in the first half. From the second half, we expect pricing and efficiency initiatives to fully offset these higher costs, meaning there should be no ongoing earnings impact beyond FY27. In summary, we expect the total adverse year-on-year ULP impact in FY27 to be between $35 to $55 million. Turning now to the FY26 results and group sales revenue growth performance. Group sales revenue increased 2%, with strong new business growth and price realisation more than offsetting lower like-for-like volumes across the group. Price realisation was 1%, as pricing increases to recover inflation were partly offset by efficiency benefits shared with customers and the adverse mix impacts from pallet availability challenges caused by US repair constraints. As you'll see throughout the presentation, price realisation varied by region, largely due to inflation and benefit sharing with customers in each market. Net new business growth was 3%, driven by the US and European pallet businesses, with both delivering 3% volume growth with new customers. Momentum accelerated across the European pallets businesses in the second half of 26, while the US maintained strong new business growth for the year, despite repair capacity constraints limiting our ability to onboard new customers in the fourth quarter. Like-for-like volumes declined 2%, reflecting subdued consumer demand across several key markets and inventory optimisation in Australia, partly offset by the benefit of cycling weaker second half 2025 comparatives. In the US, repair capacity constraints limited our ability to fully service the temporary spike in custom demand seen in the fourth quarter. Excluding the $45 million revenue impact from pallet availability challenges as a result of US repair capacity constraints, group sales revenue growth would have been 3%. Turning now to slide 20, underlying profit increased by 4% and included the $90 million adverse earnings impact from US repair capacity constraints outlined earlier, which is shown separately in the bridge. Excluding this impact, underlying profit increased 11%, reflecting the benefit of overhead restructuring, other cost management initiatives undertaken in the year, and operating leverage from sales growth and pricing. Sales revenue growth contributed $156 million to profit, while North American surcharge income increased by $25 million in line with changes in fuel, transport and lumber market indices. Plant and transport costs collectively increased by $66 million, driven by input cost inflation, higher pallet damage rates in the US, increased pallet relocations in EMEA and APAC, and incremental investment in quality and digital initiatives. These increases were partly offset by $145 million of savings from network optimisation, operational excellence and procurement initiatives. Depreciation increased by $31 million due to pooling equipment purchases and investments in automation and other non-pooling assets. While IPEP increased by $9 million due to higher uncompensated losses and an increase in the FIFO unit cost of pallets written off in Europe. Other costs reduced by $40 million driven by overhead restructuring activity and cost management initiatives. These benefits were partly offset by wage inflation and $21 million of one-off restructuring costs. Finally, central transformation costs decreased by $33 million, reflecting the benefit of research and development incentives and the capitalisation of Serialisation Plus equipment following increased confidence in the scalability of the technology and the commercial model. Turning to margin performance on slide 21. As shown on this slide, we continue to make strong progress towards our FY28 margin improvement target, with margin expansion of 0.6 percentage points in FY26 or 1.9 percentage points compared to the FY24 baseline. Excluding the impact of the US repair capacity constraints, margin expansion would have been 3.1 percentage points versus FY24. Progress has been driven by overhead productivity and asset efficiency, with supply chain productivity representing the largest opportunity for margin improvement. Supply chain productivity, as measured by the group's net plant and transport cost-to-sales ratio, has decreased margins by 1.3 percentage points since FY24, with the decline primarily reflecting the increased costs associated with US repair constraints. Moving forward, we have a number of initiatives to drive efficiencies within our supply chain operations, including the use of data, AI, and insights from our digital assets to improve demand planning, collection processes, and capacity management throughout our network. We will continue to drive automation, pallet durability, and procurement initiatives, and we also expect to see reduced inefficiencies in FY28 from a reduction in excess plant stock in the US. Moving on to overhead productivity, which has provided 2.1 percentage points of margin expansion versus FY24 due to the benefits from streamlining operations, process improvements enabled by technology and the FY26 restructuring program. Lastly, asset efficiency initiatives contributed 1.1 percentage points of margin expansion versus FY24 through a range of sustained structural improvements, including enhanced data analytics and improved palette visibility enabled by our digital capabilities. Turning to slide 22, our two key measures of asset efficiency, the Group Pooling Capital Expenditure to Sales Ratio and IPEP to Sales Ratio, continue to demonstrate the strength of our asset control initiatives and the sustained reduction in capital intensity over the past few years. The Pooling Capital Expenditure to Sales Ratio increased by 0.6 percentage points to 12.9% in FY26, well below historical averages. This was driven by the increased weighted average cost of a new pallet and 1.4 million additional pallet purchases, both largely reflecting the fourth quarter pallet purchases in the US. During the fourth quarter, the US business also utilised 0.6 million excess pallets held in storage, which resulted in a capital expenditure holiday of $20 million. Excluding this, FY26 pooling capex to sales would have been 13.2%. We have conducted audits of the remaining 3.4 million excess pallets held in storage and confirmed they are suitable for repair and reuse within the network when required. The FY26 IPEP to sales ratio of 1.7% was a 0.3 percentage point increase on the FY25 ratio, due to higher uncompensated losses in the US and Europe. However, it remains well below historical averages, reflecting the sustained improvements we have made in asset productivity and the recovery of our assets. The result includes the impact of a higher FIFO unit cost of pallets written off in Europe and a $10 million impact from higher unauthorised reuse due to pallet availability challenges in the US. Moving to our cash flow performance on slide 23. Pleasingly, we delivered free cash flow before dividends of over $1 billion for the second consecutive year, which highlights the progress we have made in structurally improving the capital intensity of our business. During the period, earnings growth and favourable working capital movements were more than offset by a $165 million increase in cash capital expenditure, a $61 million increase in net financing and tax payments, largely reflecting higher tax payments in line with earnings growth, and a $62 million adverse movement in other cash flow items, primarily reflecting changes in employee benefits provisions and increased technology investment. Turning now to slide 24, let's look at the SGMA performance starting with CHEP Americas. Revenue increased 2% with balanced contributions from price and volume. Price realisation of 1% was driven by Latin America and Canada. US price realisation was flat as inflation recovery was offset by sharing efficiency improvements with customers and the adverse mix impacts from repair capacity constraints. Volume growth was 1% and included a 3% increase in net new business, partly offset by a 2% decline in like-for-like volumes, reflecting lower consumer demand in the US and Latin America, as well as the impact of US repair capacity constraints in the fourth quarter. Margins reduced by 0.2 percentage points, largely driven by the short-term underlying profit impact in the US, as discussed earlier. Adjusting for these, margins improved by two percentage points, driven by a range of productivity benefits across supply chain and overheads, which more than offset additional costs from higher damage rates in the US, and the continued investment in pool quality and digital initiatives to enhance the customer experience across the region. Excluding US repair capacity constraints, ROSI improved two percentage points due to underlying profit growth partly offset by a 3% increase in average capital invested, reflecting pallet purchases in the region, investment in service centre automation and higher leased service centre assets. Turning to Chipamia, where we reported strong net new business momentum while ROSI and margins were impacted by short-term supply chain headwinds. Revenue increased 2%, with equal contributions from price and volume. Pleasingly, net new business wins increased 2%, driven by the European pallets business, where new business growth increased to 4% in the fourth quarter, giving a strong momentum into FY27. Growth in the region was partly offset by net contract losses in the South African pallets business and a contract loss in the automotive business. Like-for-like volumes decreased 1% due to lower consumer demand across the automotive business and the pallets businesses in Europe and South Africa. Margins declined by 0.6 percentage points as productivity initiatives were more than offset by short-term supply chain headwinds, including higher relocation costs and inefficiencies associated with lower volumes in the South African pallets business, as well as higher IPEP expense in Europe. Return on capital invested decreased 0.8 percentage points, reflecting a 2% increase in average capital invested, as underlying profit remained in line with the prior year. Moving to Chipper Asia Pacific, where revenue increased 3%, reflecting price realisation of 4%, offset by a 1% decline in volumes. Volume performance was driven by a 3% decline in like-for-like volumes, reflecting a lower average number of pallets on hire due to inventory optimisation at retailers and manufacturers in Australia. This was partly offset by contract wins across the region. Underlying profit margin improved by 1.8 percentage points as benefits from supply chain and overhead productivity initiatives were partly offset by investments to enhance customer service and quality, as well as increased repair, handling and relocation costs associated with inventory optimisation by retailers and manufacturers. ROSI increased 2.9 percentage points, reflecting profit growth as ACI remained in line with FY25. Moving to the corporate segment on slide 27, where central transformation costs decreased by $33 million. As I mentioned earlier, this was primarily driven by the incremental benefit from research and development incentives and the capitalisation of serialisation plus equipment following increased confidence in the scalability of the technology, equipment and commercial model. Other corporate costs decreased $11 million due to restructuring benefits and a range of cost management initiatives which more than offset wage inflation and one-off restructuring costs. Turning to RFY 27 outlook considerations on slide 28. We expect sales revenue growth of between 2% and 4%, including equal contributions from price and volume, with growth expected to be weighted to the second half due to the impact of US repair capacity constraints. Continued momentum is expected in net new wins in Europe, while US net new business growth is likely to be slightly below FY26 levels. Like-for-like volumes are expected to be broadly flat, subject to consumer demand trends. Underlying profit is expected to grow between 2% to 6%, with efficiencies expected to offset the impact of US repair capacity constraints and continued investment in strategic initiatives. We expect a mid to high single-digit profit decline in the first half, followed by low double-digit growth in the second half. A modest improvement in the underlying profit margin is expected versus FY26, with improvement in EMEA, a modest decline in APAC and broadly flat margins in the Americas, despite a $35 to $55 million adverse year-on-year impact from US repair capacity constraints. The plant and transport cost ratio is expected to be broadly flat to slightly unfavourable, with an elevated cost ratio in the first half, offset by improvements in the second half, reflecting costs associated with US repair capacity constraints, largely offset by supply chain productivity benefits. We expect a modest improvement in the IPEP to sales ratio from ongoing asset control initiatives. Lastly, overhead and other costs as a percentage of sales is expected to be broadly in line with FY26, with labour inflation, higher depreciation and strategic investments, offset by productivity initiatives including a net $40 million benefit from the FY26 restructuring program. Moving to slide 29. In FY27, we expect free cash flow before dividends of $800 to $950 million, with a pooling capex to sales ratio of between 13% to 15%. Higher pooling capex reflects increased pallet prices and additional pallet purchases to support growth and address US repair capacity constraints, partly offset by asset productivity benefits. FY27 cash outflows include $40 million relating to pallets purchased in the fourth quarter of 26 and $60 million for an additional 2 million pallets expected to be purchased in 1H27. These investments support the resolution of customer impacts from US repair capacity constraints. Non-pooling capital expenditure is expected to be between $350 and $400 million, including accelerated investment in supply chain initiatives such as end-of-line quality control and automated digital inspection. Digital capex is expected to be $120 million, including $110 million of spend on serialisation plus, with spend weighted to the second half given the expected timing of the North America rollout decision. We also expect next finance costs to increase by $30 million and dividend franking to reduce to 15% from the current 20%. In summary, in FY26 we delivered earnings growth, margin expansion and strong free cash flow generation in a challenging operating environment. We achieved strong new business growth across the group, while efficiency initiatives helped to offset the short-term earnings impact of the US repair capacity challenges. Strong free cash flow generation enabled us to continue investing in the future of the business, while returning $1.2 billion to shareholders through dividends and share buybacks. Looking ahead to FY27, our focus remains on resolving the US repair capacity challenges, building greater resilience in our network, and delivering further efficiency benefits across the group. We expect these actions to support underlying profit growth, further progress towards our FY28 margin target and sustainable free cash flow generation, while maintaining investment in our strategic priorities. 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 2. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Neeraj Shah with Goldman Sachs. Please go ahead.