Synlait Milk Limited

Good day, everyone. My name is Ronnie, and I will be your conference operator today. At this time, I would like to welcome you to the Sinle FY26 results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, and if you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application. This time, I would like to turn the call over to George Adams, Sinle Chair.

Thank you. Good morning, everyone. I'm George Adams, Chair of Synley, and it's my pleasure to welcome you to our FY26 Full Year Results Conference Call. Joining me on the call is our Acting CEO, Leon Fung, and our CFO, Andy Liu. They will take you through the results in detail shortly. First, I want to acknowledge that financially, this has been another difficult year for Synley, and I appreciate that for our shareholders, that is challenging news to hear. However, we have delivered a major operational recovery in the second half. And just like the repairs to the company's liquidity, milk supply and balance sheet over previous years, this is critical to our future. Simile is now stronger and more focused than before and well positioned to progress for recovery. That is real progress and I want to thank Simile's team for delivering that, including Hendrik and Ruben, who you can see on the front of our investor presentation and annual report. There have been many long hours worked on the board and I am grateful for that. I'll now hand you over to Leon and Andy and there will be Q&A after the presentation. Thank you.

Thank you, George. Good morning, everyone. Thank you for joining us for CINLE's full year 2026 results call. FY26 was a difficult year financially. It was also a year of real progress in our recovery. In the second half, operations stabilized, and this resulted in a strong improvement in financial performance. Today, Endian and I will cover the progress, the work still ahead, and how we will work to ensure Sinle's recovery continues. We will start by looking at our first half performance, as this is what has driven the overall result for FY26. The half year result was impacted by three main issues. Manufacturing plan adjustments, lower ingredients returns, and deferred tax assets. The financial impact was significant. We posted a first half EBITDA loss of $34.7 million and an overall net loss after tax of $80.6 million. thinly responded with a clear recovery roadmap. It has three interconnected horizons. Stabilize the business by fixing the fundamentals. Simplify by focusing on Danfando. And finally, scale, creating a strategy to drive future growth. I'm pleased to say we have made real progress on the first two horizons. Stabilize and simplify. This slide shows some of the work we have done. This is the deep work that has involved researching the fundamentals across four areas, operations and assets, quality, people, and revenue. In operations, we strengthened frontline leadership. We are investing in our assets, have improved production planning, and completed major projects to support long-term stability. In quality, we strengthened protocols and processes to align with new regulatory expectations in the key markets, including China. We also introduced the new product checks and improvements and embedded a company-wide food safety culture. We developed our frontline and senior leaders, uplifted engagement, drove our new performance framework, and launched a new health, safety, and well-being strategy. We reset our revenue function with a strengthened business development team, broadened our infant formula customer base, progressed adult nutrition opportunities, a tightened pricing discipline, Together, these actions have built a strong foundation for recovery. Our key achievement for the year has been operational recovery. Manufactured in stack, improved from 88% in FY25 to 93% in FY26. Production plan attainment rose year-on-year from nearly 92% to 95.5%. That is a huge achievement, thanks to our frontline teams. I'm pleased to say that manufactured in-step was 99% for August. We are focused on delivering that consistently to reach that level of operational excellence we are aiming for. You can see on slide five that operational improvement translated into a much stronger second half financial performance. Reported EBITDA improved by $77.5 million. Underlying EBITDA improved by $38.1 million. Reported net profit after tax improved by $85.8 million. And underlying net profit after tax improved by $33 million. These results show the benefit of a more stable business. However, the full year result reflects the difficult first half. My final slide for you shows the overall results. The total group revenue for the year has increased to $1.93 billion. Reported group EBITDA was $8.1 million. Underlying group EBITDA was $46.3 million. We have reported a net loss after tax of $75.4 million, with an underlying net loss after tax of $21.6 million. Net debt reduced by 14% to $213 million. Operating cash flow was negative, $183.3 million. This reflects weaker operating performance and higher working capital needs. The good news is for our farmers. Finlay is confirming its second highest milk price in our history at $10.07 per kilo of milk solids. This includes the incentives we pay our farmers above the base milk price. I will now hand over to Andy.