Insignia Financial Ltd

Good day and thank you for standing by. Welcome to Insignia Financial First Half 2026 Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To answer questions during the session, you will need to press Start 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Start 1 and 1 again. Please be advised that today's conference is being recorded. And I'd like to hand the conference over to your first speaker today, Andrew Ellick, General Manager, Capital Markets. Please go ahead.

Thank you, and good morning, everyone. Welcome to Insignia Financial's 1H26 results for the six months ended 31 December 2025. I'd like to begin by acknowledging the traditional custodians of the lands on which we meet today and pay our respects to Elders past and present and to all Aboriginal and Torres Strait Islanders on the call today. Presenting today, Insignia Financial's Chief Executive Officer, Scott Hartley, and Chief Financial Officer, David Chalmers. Scott will provide an overview of the 1H26 result, the achievements during the period, and execution against our 2030 strategy. David Chalmers will discuss financials before we hand back to Scott to discuss outlook and priorities for the remainder of 2026. There'll be an opportunity to ask questions at the end of today's presentation, which should take about half an hour. I'll now hand you over to Scott.

Thanks, Andrew, and good morning, everyone, and thank you for joining. Today we're reporting our first half result and continued progress against our 2030 vision. We recorded a 6% increase in UNPAT to 132 million, reflecting higher average FUMA, supported by positive net flows and disciplined execution of our cost out program. Below the line cash costs were reduced from $153 million to only $16 million, driving significant improvement in NPAT. Net revenue increased 1.8% supported by higher average FUMA of $339 billion, up $19 billion. We also continue to execute cost out with base operating expenses reduced by $31 million despite inflationary pressures. First half group revenue margin at 42 basis points is a mixture of Master Trust which is favourable and RAP which was lower due to the timing of initiatives and we'll speak to this in the segment updates. Despite our lower revenue margin, we were able to deliver improved costs to income ratios of 63% down from 68% showing momentum while recognising there is still more to do. We've made solid progress against key initiatives underpinning our 2030 vision. This slide provides a high level snapshot of some of these achievements which we'll cover in more detail through the business unit updates. We revitalised the iconic NLC brand in October with a lifetime in the making creative campaign. And we're already seeing improvement in brand metrics. In advice, we delivered an improved cost-to-income ratio whilst maintaining strong growth and the strong external recognition of Shedforce advisors. For RAP, initial investment in AI capabilities markedly improved customer service and advisor back-office efficiency. While momentum continued, the strong improvements in flows supported by product enhancements during the half, including MLC retirement boosts. In Master Trust, we introduced a new direct-to-consumer offering as part of our MLC brand launch, making it easier for members to join. Transition to SS&C is already delivering cost savings, and the Master Key platform transformation remains on track for delivery later this calendar year. And in asset management, investment outcomes remain strong, with 87% multi-asset outperforming benchmark supporting continued retail flows momentum. In the advice business, we've delivered an increase in net revenue and an improved cost to income ratio driven by improved advisor efficiency, net new client growth and a focus on higher value clients. Importantly, revenue per advisor increased 15% versus the prior corresponding period, reflecting the shift in mix and productivity. Chadforth was again the most recognised advice firm in Australia with 27 Chadforth advisors in Barron's top 150 and five in the FS Power 50, which speaks to the depth and quality of our advice capability. The acquisition of PMD Financial Advisors by Chadforth strengthens our high net worth capability adding around 400 client families and over $700 million in funds under advice, which supports our strategy to grow advice through higher-value clients. And operationally, the re-engineering of the advice review process, including targeted investment AI, remains on track. RAP delivered strong momentum in the half, NLC Expand recorded 3.3 billion of net inflows in first half 26 and RAP scale remains over 110 billion in FUA. We continued to improve efficiency, cost to serve reduced and EBITDA raised, increased, reflecting ongoing cost out benefits across the platform and enablement functions. RAP margins were lower than guidance due to changes in product mix the impact of higher account balances on fee capping and a delay in migrations of external platforms to the expanded platform. Innovation is a key driver highlighting the launch of the MLC Retirement Boost and continued investment in AI is strengthening customer service outcomes and improving advisor back office efficiency while clearly feedback indicating Sorry, with earlier feedback indicating the initiatives already deployed are saving advisors significant time. In Master Trust, we are delivering on simplification and unlocking benefits of scale. We completed the transitions of custody services of MLC to BNP Paribas in October 2025. We are now realising cost-out benefits, including impacts from the SS&C partnership. Cost reserve improved to 32 basis points from 36, and EBITDA increased to 147 million. On flows, workplace and direct are positive. Advised and personal remain challenged, with work underway to enhance AI-enabled member engagements and improve the advisor experience. The Masterkey platform transformation is on track for later this calendar year, supported by a strong partnership with FF&C. Last October, we launched our new direct-to-consumer offering for MLC Super to align with the MLC brand launch. So the brand promise is backed by a better member experience. We're also using AI to scale engagement enabling more targeted segmentation and personalised experiences across all digital channels. Margin has been impacted by repricing initiatives, including pricing reductions to Masterkey and Plum, and will continue to balance competitiveness with value. In asset management, investment outcomes remain at clear strength. 87% of MLC asset management fund have performed benchmark. And MLC, my super growth, is ranked top quartile over five years. We delivered $5.2 billion of net flows into multi-asset across managed accounts and diversified funds. That was more than offset by outflows and direct capabilities, which was predominantly institutional rebalancing in fixed income. On earnings, EBITDA was softer, reflecting mixed and business challenges. Sorry, business changes. including the sale of the UK commercial property investment manager in October 2025 and repricing of the MLC multi-series suite in June 2025. Capability depth continues to build. Alternatives have grown to $4 billion since launch. Managed accounts are over $4 billion and we progressed the private equity program with the close of Co-Investment Fund 4 in December 2025. We launched a national campaign in October centred on a lifetime in the making, drawing on 139 years of heritage while making the message practical and action-oriented, helping Australians reframe super around actions they can take today. We are seeing early positive momentum in tracking, awareness is up one point, consideration up three points and reputation is steady at 70%. And we've prepared the campaign with a stronger direct proposition, refreshed MLC.com and improved direct-to-consumer offering for MLC Super, so the brand promise is backed by a better customer experience. Turning to the scheme update. As previously announced, we entered a scheme implementation deed with CC Capital for $4.80 per share consideration, implying an equity value of approximately $3.3 billion and a 57% premium to the undisturbed close on 11 December 2024. The board unanimously recommends that shareholders vote in favour of the scheme. Implementation remains subject to regulatory approvals, APRA, FERV, the ACCC and FCA, but noting ACCC has already approved, shareholder approval and court approval. and the independent expert concluding the scheme is in the best interest of shareholders. We've submitted the draft scheme booklet to ASIC and the ASX for review and the expected timeframe remains the first half of calendar year 2026. I'll now hand over to David Chalmers, the Chief Financial Officer, to go through the financials in detail.