Metcash Limited

Good day and thank you for standing by. Welcome to Metcash 2025 full-year results briefing. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during a session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Metcash CEO Doug Jones. Please go ahead.

Thank you, operator, and good morning, everybody, and welcome to the Metcash Limited FY25 full-year results presentation. As the operator said, my name is Doug Jones, Group CEO, and I'm joined this morning in Melbourne by Deepa Sita, Group CFO, Grant Ramage, Food CEO, Kylie Walbridge, Liquor CEO, Scott Marshall, CEO of IHG and soon-to-be CEO of Total Tools and Hardware Group, and Steve Ash, Executive General Manager of Investor Relations. I'd like to begin by acknowledging the traditional custodians of the land on which we're all connecting from. This morning, I'm on the land of the Bunurong people of the Kulin Nation, and I pay my respects to elders across country, past, present, and emerging. As you know, we're proud of the purpose of championing successful independence in support of thriving local community. communities, and it guides our strategy and is an integral part of our culture. Our contribution to communities across Australia is well documented and something we're proud of. The idea of making a meaningful difference in the communities our networks serve and operate in is part of our DNA. At the same time, we're energized by the opportunity to win alongside independence. This is a good time to be in partnership with independence in this country right now. And we recognize the privileged strategic positioning that this provides to support sustainable and meaningful value creation for our shareholders too. This year, we've made real progress towards our purpose. Our independent retail partners are healthy, competitive, and confident. As the leading wholesaler and service provider to independent businesses in Australia, the Flywheel is the manifestation of our competitive advantage and how we create value for independent customers and for shareholders. And of course, also for suppliers. It's exciting this year to have been selected by Chobani and by Lion as their route to market partner into the independent space. And more on that in a moment. Our Flywheel is also the heart of the platform from which we can grow our services to independent businesses across the country. And it forms the foundation from which we can move closer to the shopper and through the value chain. I thought I'd just take a moment to share my thoughts on the year that's just gone by. And while it wasn't an easy one, I'm incredibly proud of the way the business has delivered. This has been a year of growth and transformation, incredible execution, and growing confidence in the future that sets us up for accelerated growth. The food business is a materially larger and better quality business now, not just because of the addition of Superior. I think you've seen another year of the evidence of its resilience. Likewise, liquor is a high-quality, well-managed business, and the delivery of material market share gains for the third year in a row is evidence of this. It's been a tough couple of years for anyone in the building supply sector, and this is well documented. But I'm proud of the way the business and our network of member partners have managed, and I'm encouraged by some of the signs that we're starting to see, and confident in our ability to take advantage of those. We've bedded down all the acquisitions, and our synergy programs are on track. We'll discuss performance in more detail shortly, but I want you to know that we remain confident that they are all quality businesses with material upside into the future. You've heard me say that we've got two sets of customers at Metcash, independent retailers and suppliers. And we've had a number of material supplier wins this year that evidence the trust that they have in us and our value to their businesses. It's all about the results though today. And while we've missed our own targets, the growth in profits and importantly the quality of those earnings as evidenced in the cash flow performance is really pleasing. You've also heard me beat the execution drum in the past, and it's not just about operational execution, but about strategic discipline too. I feel we've had another good year of cost and working capital management, and under Deepa's leadership, this has really accelerated and broadened throughout the organization. That the food team have been able to once again grow earnings in the face of their largest category suffering multi-year double-digit declines deserves the highest recognition. A year ago, the tools market was in turmoil, and I'm pleased that that's settled down and we've restored margins and held them into the new year. Building, fitting out, moving into, commissioning, and opening a new mega distribution center is a massive undertaking, and I'm pleased and grateful for the work that's been done by our colleagues who led each phase of this project. Most importantly, customers and suppliers were unimpacted through the move and are now enjoying the benefits and service from the new facility, and they tell us that. All of this sets us up to be confident about the future and our ability to accelerate the growth. On the slide, I've noted some of the things that underpin my confidence. In the last 18 months, we've done a lot of work and implemented organizational changes to strengthen and reshape the business throughout the group. In addition to the large mergers in food and hardware, we've restructured the leadership of ALM and many parts of the rest of the business, including finance, P&C, legal, and several other group support functions. This is evidence of our ambition and of our willingness to make the changes required to fulfill that ambition. I do want to talk for a moment about this idea of the diversity of our revenue streams. I think personally that Metcash is a fundamentally misunderstood business, often judged superficially as a pure wholesaler. when in reality it's an integrated wholesaler and scaled logistics operator, a banner owner, a large and growing retailer, a franchisor, and most recently a retail media owner. As each one of these revenue streams grows, the overall shape and balance of the business evolves. Resilience improves, addressable markets expand, and the opportunity for further growth extends. This is not new. It's been happening for a number of years now. Finally, it wouldn't be appropriate for me to talk about the confidence I have in our business without mentioning our independent partners and recognizing their health, their strong and differentiated competitive positioning, and their own confidence. I said just then, and only a little tongue-in-cheek, that Metcash is a misunderstood business. And what I mean by that is that thinking of it as purely a wholesaler materially underestimates both the quality of the business and the opportunity before us. I think this is best brought to life by firstly understanding the balance of the group as a wholesaler, a retailer, distributor of food and liquor to the on-premise and out-of-home market, and as a franchisor. And secondly, through a deeper understanding of how the shape and balance has changed in recent years. So, for example, in FY20, wholesale revenue represented 81% of total revenue. Last year, this figure was 74% of total revenue. While that's a reduction in the proportion of total revenue from wholesale, it belies the strong growth in total dollars of 21%, which, remember, is inclusive of tobacco, mind you. Retail, now at $2.2 billion, is 11% of total revenue and has grown by 133% in the same period. And food and liquor out of home is now a $3.2 billion business and represents 14% of the total group revenue. Franchise income may be small in dollars, but it's highest in margin. And in the future, retail media and additional services offer the prospect of healthy margins, and our plans are aimed at growing these revenue streams. We think about this idea of winning with independence in some part through the lens of operating businesses alongside them. We've done this for years now in hardware and total tools, and we've signaled our intent to do the same in the food business. Thinking about this as moving closer to the customer and closer to the end transaction allows us to articulate our strategy in a way that perhaps brings it to life more effectively. And what I hope is also being brought to life is the opportunity for material further growth that this continues to present. Each of these functional revenue streams have their own financial, operational, and cash flow characteristics, as well as differentiated capital structures and return metrics. As a wholesaler to thousands of stores, we're deeply connected to our customers, particularly those who are members of our Bannard networks and who use our brands in their stores, and intrinsically reliant on one another. While wholesale EBIT margins may be at the lower end of the spectrum, the returns and cash flows are of a high quality, being predictable, reliable, and resilient. And wholesale return metrics, return on capital metrics, are strong too, and that's evidenced in part by the food row fee metrics. Retailing presents the opportunity for improved margins, which can and do leverage with volume, as we know, and have a different capital investment framework. In addition, ownership of stores alongside our independent partners makes our network stronger. We've proven this already in IHG and Total Tools. Franchising allows us to invest in the network as a whole and to share directly in the returns from that investment. This is good for the network and good for shareholders. Equally, each of these revenue models opens a new series of addressable markets, and thinking about our business beyond wholesaling allows us to widen our ambition within that larger total addressable market. So I'd leave you with this final thought on this slide then. At the heart of our flywheel is our logistics capability, and at the heart of our business as a platform to support and win with independence is our wholesale business. But neither of these are the full extent of the Metcash Group or of our ambition. Turning now to the financial overview, I won't talk to the slide in great detail, but some highlights for me include the strong revenue growth and growth in both underlying group EBIT and reported profit after tax. the very strong operating cash flow on the back of a pleasing cash realization ratio stands out too. Deepa will talk about this in some detail, but I just want to remind you of the H1-H2 variability and that a focus on the three-year CR is more appropriate than the half result or even the full single-year metric. You'll note that we've increased our target range for the three-year cash realisation ratio to 80% to 90% over that three-year period. As you can see, the company has a strong balance sheet with good flexibility. Underlying earnings per share were 21.5 cents, and the board has declared a full-year dividend of 18 cents, which includes a final dividend of 9.5 cents. This equates to just above 70% of underlying profit after tax payout ratio. I do want to point out that the group EBIT includes $7.7 million of restructuring costs taken above the line. Looking at the pillar results, it's pleasing to see the strong revenue growth in all pillars, and this is accelerating in food and liquor and steady in hardware. As you know, Superior is included in the food results for 11 months of the year. I noted the cash performance earlier, and it's good to see EBITDA, which we're sharing with you for the first time, up a healthy 8.6%, and group EBIT up 2.3%. In food, independents have maintained share in difficult trading conditions where competition continues to be intense. The differentiated value offer from our independents continues to resonate with shoppers, with foot traffic steady and volume continuing to grow in the face of moderating inflation. As noted before, assessing the performance of the food business is best done on an exclusive of tobacco basis. I'm pleased to report store growth on a net basis of positive 9, and this is primarily of the medium-sized so-called sweet spot stores, as Grant describes them. As you can see, the tobacco decline has accelerated, and I'll talk more about this in a moment. In Campbell's and Convenience, this really is a reinvigorated business, and one that's delivering growth, particularly in the petrol and convenience channel. Following the Ampol win, which went live in February, we're now the leading supplier to the sector and partnering with all major petrol and convenience brands. Superior sales have grown at 4.6% over the 11 months, and we've recently renewed major contracts worth around $240 million per annum, representing approximately 20% of total turnover. And this evidences the trust that major customers have in Superior. Competitive intensity in the independent or so-called street sector remains, and this has put pressure on margins, and I spoke about this at the half too. And I'll come back to Campbell's and Superior in a moment. Total food earnings were $248.4 million, which is a growth of 18.2%, and include $2.5 million of restructuring costs. and delivered an improvement in EBIT margins of 14 basis points, supported by a mixed shift away from tobacco and a contribution from Superior. As I've said, this is indeed now a larger, more diversified, and more resilient business. I said I'd comment a little bit on tobacco, and I want to dwell here for a moment. The effectiveness of the various law enforcement initiatives has been disappointing, to say the least, although there are some encouraging signs emerging recently. That said, we're a leading participant in the sector and we believe it's incumbent on us not to look to others for a change in fortunes. We have been and we will continue to take control of what we can control and influence in the interests of our shareholders and our customers. Our strategy is clear and I'm sure you'd agree that we now have a strong track record of managing the impact of the decline exceptionally well. This is best highlighted by the consistent earnings growth in supermarkets and Campbell's and convenience over the last few years, despite a 40% decline in tobacco sales since the peak in 2021. To put that in dollars, we now sell approximately $1.3 billion less tobacco than we did at that peak, but earnings are still well up in that period. Tobacco now represents just 17% of total food sales. In the spirit of making our own weather, our strategies are evolving and are founded on growing our customer numbers and our sales as a key distributor for all tobacco suppliers, winning profitable market share, restructuring our commercials, and initiating a number of supply chain initiatives to make us more efficient and to enable us to take advantage of the strength of our leading position in this market. Finally, you'll be aware that the accelerated excise program comes to an end next year, and we wanted to provide some detail and some reassurance of our ability to navigate this, as we've done in the past. We anticipate the net EBIT impact to be less than $5 million in FY27, and we have a high confidence in the continuation of our successful mitigation strategies. Turning to liquor. I really don't think it's fully appreciated just how well the Metcash liquor business has performed over the last few years. And this confidence is underpinned by the continued shopper preference for convenience format and the quality of the differentiated independent offer. and it's further supported by the preponderance in our network of the convenience format liquor stores that offer incredible value across locally curated ranges located in multiple easy to access places. As you can see, the growth accelerated in the second half and supported continued market share gains, which I'll outline shortly. The outperformance by independence has been led by our IBA network, underpinned by the focus on execution in store and partnerships with key suppliers. Today's exciting announcement of the acquisition of Steve's Liquor Warehouse from Tony Leon and his partners is a further step in this growth story. This is an eight-store group in Victoria and Tasmania and will deliver around $3.5 million of earnings. While small, it's immediately EPA secretive. Talking about growth, the line distribution agreement in South Australia is worth around $100 million per year in turnover and has delivered results in excess of their and our own expectations. To give you a sense of the scale of what's involved, in the first week, the team moved the same number of kegs we'd normally do in a year, and most pleasing of all was that that was done without a single safety incident. The benefit extends to our customers, who get one delivery, one invoice, and aligned terms, and they have been consistently telling us how pleased they are. They also extend to ALM, where the benefit is beyond just the line volume and has supported our winning new customers who buy across the range. And you'll be pleased to hear that we see further opportunities like this one. I often speak about the multi-channel approach in liquor and the diversification of our strategy between on-premise contract customers and IBA-bannered customers, and this continues to support the growth and resilience of this pillar. We're grateful for the partnerships we enjoy with our contract customers, who themselves represent the best of local convenient value for shoppers, and we remain committed to and appreciative of these partnerships. While it's never ideal to go backwards in profits, the discerning analysis will reveal that this is an exceptional performance relative to the market in the face of materially lower wholesale price inflation, which impacts margin expansion opportunities. I said I'd talk about liquor market share. And I wanted to share some of the facts with you. Since FY22, the ALM total share of the packaged liquor market has increased by 2.7% to 31.1%, and notably has been achieved across all categories. And this is evidence of that virtuous cycle in action. Improved delivery for suppliers through better execution of agreed programs, leading to further support and investment from them. And it also reflects the strength of the convenience format as well as the execution of our independent partners. This all underpins my enthusiasm for and confidence in the business. Turning now to hardware. The fact that this is a difficult market right now is well documented and understood. And I noted earlier the challenges of operating in the building supplies, hardware, and professional tools markets. That said, we have a quality group of businesses. stores and independent partners. And while the focus is in profit growth, as it should be, it shouldn't be lost on anyone that this is a large group that delivers material profits at EBIT margins well above 5%, even at this point in the cycle. I want to call out and recognize the strong execution in cost, inventory and margin management. Pillar sales were up 2.4%. While trade activity remains subdued, there has been some improvement in Q4 and into the current year. The decline in charge-through sales is because those categories are primarily trade-based, but it's great to see that timber and building supplies are in growth in the first seven weeks of this financial year. From an earnings perspective, you should note the EBITDA result, which essentially represents cash earnings and are broadly flat with depreciation and amortization relating primarily to acquisitions. While total pillar earnings were down, There is earnings momentum in both businesses, with total tools returning to earnings growth in the second half of this year, as we foreshadowed in December. In IHG, the impact of deleverage following lower volumes on retail and trade site margins and earnings has been discussed extensively and continued in the latter half of the year. That said, I do want to point out again the strong cash earnings result using EBITDA as a proxy. As building supplies inflation continues to moderate, we're seeing an improving trend in IHG, particularly in the last quarter. Trade is where the pressure is most concentrated, with DIY holding up pretty well. As I noted earlier, the IHG earnings performance was stronger in the second half, and this is evidenced in the improved EBIT margin. Wholesale margins were very slightly up, and retail gross margins were stable through the year. But as I've said, Lower trade volumes does have a material deleveraging effect on our own sites, which are primarily trade sites. Equally, in total tools, lower trade activity and lower tradie confidence and spending has had an impact on volumes. That said, franchise fee and other revenue grew, while a small decline in our JV retail stores is partly caused by the disposal of two of those stores this year. It's really pleasing to see the exclusive brand growth and a vindication of the decision two years ago to move the consolidation facility into the Raven Hall DC. This also provides a strong platform for the continued merging of the IHG and Total Tools supply chains to benefit both networks through lower costs, wider ranges, and shorter lead times. You should note too the strong commercial sales and online growth trends. These are now multi-year trends. Looking now at earnings and total tools, as I've said before, I think the best way to understand it is to look at the EBIT relative to total network sales. And you can see the improvement from the first to the second half. The divestments I spoke about a moment ago had a $2.4 million impact on total tools earnings. And as you can see, the impact of lower volume on the JV earnings as that deleverage happens. It's pleasing to see the material improvements in exclusive brand earnings on the back of that strong growth I referenced a moment ago. As we noted in December, the decline in EBIT margins at store level reflects the margin pressure experienced in the first half. As you know, a few months ago, we merged Superior with Campbell's and Convenience to form the Metcash Food Service and Convenience Business Unit. This was done to support the acceleration of a number of value creation initiatives, including bringing the merchandise team together, integrating the supply chains, and presenting a more aligned offer to our customers. Craig Phillips will be the CEO of that business, and we're confident that that's the right way to launch what we expect to be a very exciting venture. In the second half of the year, as I noted, we re-signed around $240 million worth of major contracts, which represents approximately 20% of the total Superior turnover. Superior also recently won the Star Hotel Group contract worth between $15 and $20 million a year. You may recall that we identified between $30 and $40 million worth of additional capex at the time of the Superior acquisition. I'm pleased to update that the $10 million we had earmarked for spending this year has not been required, and that we are revising downwards the guidance of that $10 to $15 million a year to $5 million this year and next. And this is evidence of the quality of the business. As I noted in the first half, the competitive intensity and customer pressure for efficiencies and lower costs in the independent or street business has increased with consequential pressure on margins, the value of which is around $1.8 million. This has been more than offset by better-than-expected synergy realization. A bit like tobacco, we're acutely aware that it is our responsibility to control what we can, irrespective of market conditions. As you can see, there's been a lot of work done to position this quality business for accelerated growth. A reconciliation of superiors' earnings is available in the appendix, and I draw your attention to the customer contracts amortization that arises as a non-cash cost following the finalization of the purchase price accounting, which was flagged in the first half presentation. In hardware, Bianco is performing exceptionally well, while Alpine is feeling the effect of lower volumes in the very difficult residential construction market in Victoria, particularly acute in Metro Melbourne. And synergy realization for both businesses is on track. Before I hand over to Deepa, I wanted to point out a few new slides in the appendix to the PAC. In addition to the now familiar total tools earnings analysis and the total tools put option summary, we've shared how we're thinking about helping investors understand the merged hardware business and the new food service and convenience business unit by outlining in detail the proposed disclosure. In particular, we anticipate sharing improved detail on the retail businesses within hardware and total tools. As we merge them, we'll bring the supply chains together, and this means there'll be a single TTH group wholesale result. And forming shared leadership and other shared group capability means that the allocation of costs between the entities is not useful. We look forward to engaging with the market on this, and while I'm sure investors and analysts will agree that this is a meaningful improvement, I have no doubt we'll get some feedback during the week. We've also provided updates on a few key strategic initiatives, including ESG, where we continue to improve our impact and our credentials, on retail media, where we're making really good progress, and on Sorted, which is now an established, scaled, and leading digital B2B marketplace used by thousands of customers across supermarkets and cannibals and convenience on a daily basis. And I'm excited about the next step in the rapid growth of this platform, which will be the transition of the ALM business onto it in the first quarter of this year. We've also provided an update on Horizon where we continue to make steady progress. There's no change to the cost guidance with targeted finalization in the last quarter of the calendar year 2026. And finally, we've included some of how we're thinking beyond Horizons. Our partnership with Microsoft and the decision to use Microsoft technology at the core of our tech stack has put us in an advantaged position in building momentum with the use of AI. We have several use cases already delivering value and a growing number in the hopper. And we're receiving strong support and real investment from Microsoft. And we're confident that this relationship will stand us in good stead as we finalize Horizon and leverage the investment for growth and value creation. And on that note, I'd now like to hand over to Group CFO Deepa Sita to present the financials.

Thank you, Doug, and good morning, everyone. Building on Doug's update, I'm pleased to provide an overview of Metcash's financial performance for the year. Despite challenging conditions, Metcash delivered a strong profit performance, achieving a 10.1% increase on prior year. This was largely driven by 8.9% revenue growth, which was supported by acquisitions. The acquisition synergy realization ended ahead of market guidance, while cost initiatives also exceeded the annualized savings target by 60%. The year-on-year increase in finance costs was largely driven by acquisitions, which were funded through a combination of debt and equity. The finance costs were also affected by the impact of new leases, most notably the Traganina DC. The underlying EPS is reported at 25.1 cents per share, which includes the impact of the equity raise. Disciplined execution drove the strong cash performance, which has resulted in a three-year rolling CRR of 94.7%. On the back of the sustained performance, we've lifted the three-year CRR guidance to a range of 80% to 90%. As we've highlighted before, working capital fluctuates through the year and intra-month. Because of this, we expect the six-month CRR at H1 FY26 to come in slightly lower. This is consistent with prior periods and reinforces why we continue to focus on the three-year CRR as the more appropriate measure. As Doug mentioned, the Board has declared a final dividend of 9.5 cents per share, reflecting a moderate increase against the annual target payout ratio. The DRP will also remain in place with no discount. So the FY25 outcomes outlined on the right-hand side of this slide reflect a consistent and disciplined application of the capital management framework. The key highlights for the year include a 11.6% increase in operating cash flow to $539 million, supported by stronger EBITDA. Medcash closed the year with a DLR of 0.96 times, which was comfortably within the guided range. The business also invested $552 million in M&A, and capital initiatives focus on strengthening the core and advancing strategic growth. As previously flagged, the net debt increased year on year, primarily due to the superior foods acquisition, as well as increased ownership in total tool stores. You may recall that the prior year closing balance included an amount of $354 million from the equity raise, and this was only utilized in the beginning of FY25 to fund a significant portion of the superior acquisition. The total annual dividend declared amounts to 18 cents per share, reflecting a payout ratio of approximately 72% of underlying NPAT. The key dates for the dividend and DRP are provided in the appendix section of the deck. The ROFI of 23% is reflective of the short-term impact of recent acquisitions, continued investment in long-term enablers such as technology, as well as new DCs, as well as the softer earnings in hardware. So this slide provides an overview of the P&L performance and other key financial highlights. The group delivered revenue growth across all pillars and is underpinned by a diversified portfolio and overall business resilience. The EBITDA grew 8.6% to approximately $748 million. This was led by a strong momentum in the food pillar, which was supported by the superior acquisition. The result also reflects disciplined cost control and continued focus on operational efficiency across the business. The underlying EBIT increased 2.3% to approximately $508 million, again largely driven by the food pillar. The result was partly offset by a softer performance in liquor and hardware. The EBIT result also reflects a higher depreciation and amortization charge, largely linked to the recent M&A and the commissioning of the new distribution center in Traganina. The net finance cost for the year is reported at $122.4 million and is in line with the guidance. Looking ahead, the FY26 net finance cost is expected to remain between $120 and $125 million, and this is assuming a broad offset between a moderate easing in the interest rates and higher average debt utilization. The significant items are of the same nature as disclosed in prior years, along with the gain from the reversal of a previously impaired loan to DRAMAT as disclosed in H1. Further details are available on the slide and in the financial report. As I said before, the underlying EPS at 25.1 cents per share was primarily impacted by increased finance costs and the equity raise, and this was partly offset by a higher EBIT. In terms of capital expenditure excluding acquisitions, that came in below guidance, reflecting a considered approach to investments in a challenging market. Some of this variance relates to network investments and is primarily due to timing delays, with Metcash continuing to evaluate growth opportunities. In the hardware pillar, leadership changes during the year also contributed to some delays as well as a reprioritization of spend. The updated guidance for FY26 CapEx has been set at $200 million, reflecting current planning as well as investment priorities. The put option resets for Total Tool JV stores were carried out both in FY24 and FY25 as part of the continued investment in the network. That said, though, the significant year-on-year variance is primarily due to the $101 million payment in FY24 to acquire the final 15% stake in Total Tools Holdings. So Medcash retains the balance sheet flexibility and remains well within the parameters of the capital management framework. The net working capital closed at approximately $457 million with the increase in inventory levels supported by favorable supply funding ratios. The increase in inventory was primarily driven by the superior acquisition, as well as a deliberate uplift in tobacco stock ahead of the regulatory packaging change. This position, supported by favorable supplier funding terms, allowed Metcash to create value in partnership with key suppliers and ensure continuity of supply to customers during a period of uncertainty. The average working capital day is improved by 1.2 days, and optimizing working capital remains a key priority, and the business continues to actively explore further opportunities to strengthen the financial resilience and unlock further value. The intangible assets have increased to $1.45 billion, and this is primarily due to the Superior Foods acquisition. As Doug mentioned, the purchase price allocation for Superior has been completed in H2, contributing to the increase in the customer contract amortization charge during the year. Medcash has a healthy, well-balanced and carefully managed debt maturity profile, with total facilities of $1.57 billion at year-end. The undrawn facilities totaled $889 million, highlighting the strength and flexibility of the balance sheet to support both day-to-day requirements as well as strategic priorities. The closing net debt ended the year at $577 million. And given the fluctuation in net working capital throughout the year, closing net debt should not be viewed in isolation. Therefore, in line with the H1 results, we've again shared the average net debt position to offer a clearer picture of the financial leverage. For FY25, the average net debt was approximately $805 million with a DLR of 1.33 times, again well within the target range of 1 to 1.75 times. The weighted average debt maturity has increased to approximately 3.3 years following the refinance of both five and seven year syndicated facilities during the year. The weighted average cost of debt remains broadly in line with the prior year. While the cash rates have begun to ease, the recent rate cuts occurred late in the financial year and haven't yet flowed through the seasonal debt peaks. $295 million remains hedged at a favorable rate of 3.8%. And on that note, I'll now hand back over to Doug.