Pick n Pay Stores Limited

8.30 it is. Good morning and welcome to everybody here present today inside the auditorium and then all of those joining us online. Good morning and welcome to this presentation of our FY26 full year results. It's my pleasure to do the introduction today and to just bring you up to speed a little bit with where we are and I know that there's obviously been a Lots of coverage in the media and another trading update that was issued on Friday. But I suppose some of the real major call-outs for us is that the journey that we're on is that we are pleased with the steady pace of recovery that we're showing in the organisation and specifically in our top-line sales growth. And we recognise that there is still an enormous amount of work to be done. And you know, it's amazing, driving in here today, if you just have a look outside the building and you have a look at how Peckinpah is showing up as a business today, with all of its new branding, its positioning, and really getting the essence of the company back into what we do every day, that this company certainly does have a heartbeat today, and it does have a pulse. And we recognize that we've still got a lot of work to do, but we have done a lot in the last two years. And for that, I thank my entire management team and leadership team in the company, as well as every single solitary person that works for this business. Our people are lovely and pick and pay. They are absolutely great. And I always say, if you're having a tough day in the office and things are looking really hard, just go and visit the store and then you work out quickly why you actually do it. Our people are awesome. So a lot of the initiatives that we've got in place in the company are are starting to show traction, and despite the fact that there are obviously a lot of macro issues that we have to wake up to and deal with every single day, we can control the controllables, and that's who we deal with every single day. So, without any further ado, I'd like to call on Lorena to please come up and present the numbers. Thank you, Lorena.

Thank you, Sean. Good morning, everybody. Thank you very, very much for joining us, either here in the auditorium or online. As Sean has indicated, it's been another milestone here for Pick and Pay. We have worked hard on all the critical initiatives to support our turnover plan, and Voxer has continued to grow at pace. Before I start unpacking the FY26 results on housekeeping matters, a reminder that the prior financial year was a 53-week financial calendar and the impact on the prior year group profitability was minimal. We have presented like-for-like 52-on-52-week turnover numbers where appropriate, but the base of this presentation is 52-on-53-weeks unless the numbers indicate differently. The group recorded turnover of 120 billion, up 3.4% on a 52-week basis. Boxer supported that number with a market-leading 12.3%. The pick-and-pay segment turnover declined by 1.6%, reflecting the conclusion of our successful store reset program. We delivered a profit before tax and capital items of 360 million. That is an increase of $537 million of the loss of $237 million we recorded last year. The main driver for this increase in profitability was our net funding interest year-on-year positive swing of $681 million. This offset the increase in our trading loss of $74 million for the year. Our profitability improvement on a headline earnings level is significantly lower as it reflects the increase of the NCI, the non-controlling interest in Voxo of 34.4% which is now annualized. We have a full year of NCI in this year versus three months in the base. We have made strong progress on multiple fronts. We closed off the group's balance sheet with cash of 3.1 billion $2.4 billion of which belongs to the pick-and-pay segment. We're making ongoing progress on our strategic priority to improve our life-like sales growth in our company-owned and franchise stores. The pick-and-pay supermarkets' own stores grew 3.9% for the year versus 3.3% for the previous financial year. Our franchise issues is up 0.9% compared to a decline of 0.1% last year. This improved momentum is notwithstanding the very soft November trade that we experienced as we have previously reported. Our like-for-like sales momentum has returned in December throughout the end of the FY26 financial year and has continued at levels slightly above into the new year. We have delivered like-for-like volume growth in the pick-and-pay segment of 0.9%. Our internal selling price inflation was at 1.9, well below CPI of 4.4, again illustrating our commitment to deliver to our customers better value at lower prices. Our omni-channel sales, driven by both ASAP and Mr. Dean, was up 33%. We are achieving strong growth of a very strong base, and we are now serving customers out of more than 620 stores of 2,500 bikes. The pick-and-pay clothing turnover in standalone stores increased by 5.3%, with like-for-like at 0.7%. The H1 momentum of 12% slowed in H2 to minus 0.9%. mostly as a result of a soft clothing market in general. Our clothing standalone stores' three-year like-for-like average growth is at 3.5%, very strong when compared to the market as a large. Our clothing team opened 22 stores this year, with the total estate now standing at 457 stores. The pick and pay segment itself delivered turnover of $74 billion. That is only slightly behind that of last year. That is notwithstanding the closure of 98 owned and franchised stores over the last two years. The turnover that we actually have achieved on a life-for-life basis is absolutely reflective of the team's commitment to improve operational excellence and customer experience. The pick and pay business is not materially smaller year on year and we are really looking forward to return to a growth business in FY27 as the store closures are now largely in the base. The group's trading profit of 1.7 billion decreased from the 1.8 billion last year. We have a similar decline in our trading profit after lease costs. Our main key metric where we measure the business and our objective is to get the trading profit after leases back to a break-even number. We've had exceptional improvement in the Boxer trading profit of circa 300 million, notwithstanding the increase in their listing costs. This was offset by the increase in the pick and pay trading loss of circa 400 million. The Boxer team has already presented their results to the market, so I'm only going to briefly touch on that in this presentation. Sean and I and the team's focus is on pick-and-paste turnaround, and that's what we will focus on today. Our box of business, as I've mentioned, grew turnover by 12.3% on a 52-week basis. They delivered an increase in trading profit of 17%. Their trading margin improved by 30 basis points to 5.7%. Well done to the team on an excellent set of results. Their full results The pick-and-pay key metrics reflect steady progress across all our strategic initiatives, despite the pressure on our profitability year-on-year. Each of these initiatives are focused to get the business back to a break-even number. The main driver, as I've mentioned, of the segment's earnings improvement all up of $400 million is our interest benefit of $681 million year-on-year. as a result of the recapitalisation in the previous financial year. Offset by this is the decline in the pick and pay trading profit itself, which I will unpack in the following slides. Our trading loss increased to 953 million from 549 million last year. That is a trading loss margin increase of 60 basis points. The like-for-like expenses were up 6.7%, compared to our like-for-like sales of 3.1%. This is the main strain on our year-over-year profitability, notwithstanding the progress we've made on our strategic initiatives. Our gross profit margin is up 40 basis points, and this was not sufficient to offset the 100 bps increase in our trading profit margin. Both of these items I'll unpack on the following slides. Our other income is down 2.4%, reflecting our reduced property portfolio and our franchise closures and conversions. Our successful store estate reset has now removed 61 unprofitable owned stores from the estate, and we have loss avoidances in this year's result of close on $118 million because of the store reset. program. Also included in this number, that is important to note out, is 260 million of IFRO 60 lease profits relating to the store closures and 235 million of once-off restructuring costs relating to store closures and other strategic initiatives. Our digital costs in our FY26 results is an estimate of 625 million, 0.8% of our turnover. We've made great progress, but there is much more to do. We have improved our life-like sales growth. We have delivered on our gross profit margin. We are focused on investing in the right places to support our plan. The improvement in trading expenses will come. specifically through the Future for Structure initiatives that Sean will unpack more in his presentation. As I indicated, our GP margin is up 40 basis points with a 30 basis point underlying improvement. The underlying improvement was supported by improved category management and mix, specifically towards fresh and our general merchandise items. and we have had a notable reduction in our waste as our operational excellence improved in-store and across our supply chain. We also have continuous improvement in our buying and our supply chain efficiencies. Notwithstanding this improvement in margin, we have still delivered more range to our customers at better prices. We remain price competitive. We have also invested in our franchise model, We have reduced the sales margin on the articles we sell to our franchisees to support the profitability of this very important part of our business. The 40 basis points improvement over this period, given the investments that's been made and the customer experience that's been proved, I believe is a very strong performance. Our all-up trading expenses is up only 1.1%, reflecting the store closures. that we have done through our store estate reset. On a like-for-like basis, however, as I've mentioned, it is up 6.7%. The increase in our like-for-like expenses is driven by above-flation wage increases as well as investments in store execution and training. We have done selective hiring to get the right skills into our stores, we've improved our training, and that is ongoing, and we have made a strong investment in our brand. As I know, these that are present in the auditorium would have witnessed the progress that we are making in this regard. We are focusing our spend on what is required to rebuild the pick and pay business. As I've mentioned, we are acutely aware of the requirement to get our life-for-life expenses below our life-for-life sales growth. This is a key focus area for us, and the current consultations with our labor partners is a critical enabler in this process. We have net positive finance swing of just under 700 million as a result of our debt pay down last year, and this is the majority of the driver of the year-on-year increase in profitability. Our net lease interest in terms of IFRA 16 is in line with last year, also reflecting the store closures in the store reset. The group headline earning loss of $386 million has improved by 5.4% for the year. This reflects the improvement in the box of trading profit after leases of $259 million and the decline in pick and pays trading profit after leases of $343 million. and then of course supported by the net funding interest benefit. This is also impacted by the inclusion of the 334.4% Boxer NCI annualization year on year. The pick and pay working capital did not require any liquidity utilization during the period, notwithstanding the investment in the improved ranges. The tight inventory management is reflected in the decline in inventory year on year of 2% if acquisitions is excluded. This is despite the fact that we had a weaker November trading period. We still did not have any inventory overhangs at the end of the period. There has been continued focus on working capital management across the group in both Tick and Pay and Boxer. and we believe there is more benefits to come from the FutureFit initiatives, specifically in the pick and pay segment. I'm very happy with the progress in this area. Pick and pay ended with $2.5 billion cash on hand. We utilized $2 billion from free cash flow during the period. That is an improvement of the utilization of $2.6 billion last year. it is more than our original guidance for this year of 1.6. The reason for the shortfall on the guidance is the operational performance was less than originally anticipated, largely driven by the disappointing peak trade period with recovery subsequent. And despite this, worse than expected operational result, our working capital management remains strong, as I've indicated on the previous slide. The group invested $1.9 billion up from the $1.5 billion last year. This increase is driven by pick and pay. The pick and pay investment is 0.8 up $300 million on last year. Our spend remained measured as we did utilize $2 billion of free cash flow for the period. Our focus is on revamping key stores where we can optimize our ROI critical repairs and maintenance, and some franchise acquisitions. OPEX investment in our people and our brand and our partners remain our critical focus. The success of Pick and Pay's turnaround is not based on spending capital at all costs. However, we do want to make sure that we invest on the front foot ahead of the plan to support the business becoming a growth business. And as a result, we have increased the guidance for the pick and pay spend to 1.4 billion, up from the 1.8 in FY26 for the next financial year. At the year end, we ended with cash reserves of 3.1, 2.4 billion for pick and pay. Boxer remains highly cash generative, adding 0.9 to our cash reserves during the period, and the Seen repaid their final outstanding debt of 200 million post-financial year end. The business is now totally debt-free. Post-balance sheet date, We Can Pay reduced its shareholding in Boxer from 65.5% to 53.1% in a highly successful capital raise. We remain the controlling shareholder of the Boxer business. We raised $4.7 billion through this process, now having circa $7 billion on the balance sheet to fund the future growth of Pick and Pay and its turnaround plan. Our balance sheet is strong. Our focus remains on growing Boxer and ensuring that we turn around Pick and Pay. I will now hand over to Sean to take you through the initiatives that we are following to do so.

Thanks, Serena. So, if we see where we are currently on this journey that we're on, it really is extraordinary how time does fly. And it's just a little over two years ago that I had to stand in this auditorium for the first time and start to give you some initial feelings and indications of of where I believe Pick and Pay found itself and where we were going and the journey that lay ahead of us and to make the prediction that this was indeed going to be a multi-year process in terms of getting the organisation back to where we need to get it to. And you know, one of the major call-outs from Lorena in her numbers that are there now is not to underestimate the effect of the closure of stores in the group Because on the one hand, you are saving, obviously, the loss that you're making in those stores, but those stores still contribute to the centre. And our simple reality in this company is that we are still in a negative dual situation, that the rate of our expense increase is well controlled as it is by Dennis and all of the operators in the business, that until such time as we get that the right way around, we're not going to be able to get those jewels back open again as soon as we would like to get them. And that is really what gets our focus and attention every single day when we do come to work. So we are encouraged that despite the fact that we've been shrinking the company, for lack of a better term, while our opposition has been growing at a prodigious pace, opening huge numbers of stores, we've managed to achieve what we've achieved. And that's why the Life for Life sales growth for me is an extraordinary measure of of what has actually happened in this company where we've come from a massively negative delta to where we find ourselves at the moment and that's on the back of a lot of hard work that's been done by the team. Our franchise business continues to gain traction and we know it is common cause that there's lots of conjecture about the whole world of franchise at the moment and we can see some of the major franchise operators are under extraordinary pressure as well in this marketplace. And I think it stands to good understanding that as margins have been compacted, and it's happening across all industries, doesn't matter what industry you're in today, margins are getting compacted today, and the same thing has happened in the split between the franchisee and the franchisor in terms of the margin compaction that's taking place. And a lot of the talk about this huge growth in the wholesale sector as opposed to the retail sector is that what you're seeing happen quite a lot today is a lot of distribution from the major manufacturers that would traditionally have gone through either ourselves or the other major franchise operators is in fact now going into the wholesale sector and then finding its way back into the retail sector again. So we're finding even in our own franchise network that they are buying out of... and into wholesalers where they can find on large job lots greater prices for themselves and this is a phenomenon that has been growing within the franchise sector. and we have spent an enormous amount of time rebuilding our relationships with our franchisees, and I'm pleased to say that it's better than it's ever been. And in fact, we're seeing that our percentage of purchases is in fact now going back the other way again, as we've dealt with the margin issues. If we have a look at the issue of inflation, and again, one must take into account in this backdrop here that we've had to deal with deflation, in major, major categories in our business. So when you have a look at our life-for-life sales growth and you take into account the deflation that we've had to deal with, it's also been a reality for us. And you can see that it's even more profound in the boxer world. We're obviously at the bottom end of the marketplace where you've seen most of the deflation in the major categories that we've had to deal with this. And again, to Marek and his team, It's just extraordinary the way that they have stepped through this and dealt with it. So, great accolade to them as well on that regard. For us in Peckinpah, and you will see in our beautiful new fleet of vehicles when you came in this morning out front, the fresh food people, we are clearly, clearly re-establishing ourselves again as the fresh food people in Peckinpah. It used to be where we were in the old days, and people say, well, you know, what is the difference going to be in pick and pay? Well, I can tell you that the absolute front door of this company, again, as we're stepping forward and building this up all of the time, is in our fresh offer and getting ourselves back to being the fresh food people again, and dare I say, fresh food that people can actually afford. But we'll leave that there. We can let that hang in the air. But that's where we will be driving our business back again because it's vital for us. And our fresh growth has been absolutely phenomenal. So to Peter Arnold and his team, they're well done. If we have a look at ASAP and the progress that we're making in ASAP as well. Again, strong, solid growth and some wonderful evolutions there. And to Hazel, we've now got clothing online on ASAP as well and great, great growth in the sector of the business as well. Smart Shopper, we can just have a look at the branding. And, I mean, wherever you have a look around in Pick and Pay, we've really now got ourselves back to a strong corporate identity again, strong carry-through. You see our beautiful new bags back in the shops again with the blue stripes on the bags again and just getting that solid, solid differentiation back for ourselves. And a huge amount of work has been done in both the – smart shopper, card and benefits and loyalty rewards and you're going to see that there will be a huge amount of emphasis put on this as well as the retail media and data monetization which is work that Vince and his team are continuing a pace with. And our rate of recovery, if we actually have a look at our retail media and data monetization you will see that the rate at which we are collecting there is basically equal with the industry when we have a look at it. So we are not behind in any way, shape, or form in that regard. Supply chain. We concluded our negotiations this year with DP World, and we have now reconfigured our total supply chain network, and that is all dealt with. And that beautiful big building that we have up in Eastport, that massive distribution center, That was really way, way, way in excess of our requirements. It's now being fantastically fully utilized by DP World, and we are paying for the portion that we use. So we've managed to get that dealt with and squared away as well. Our store labor model review. This is obviously currently... a very, very important part of the journey that we're on. And I've no doubt that when we get to question time that there will be more than enough questions in this regard. But it is our sincere hope and belief that we can step through this in as orderly a way as possible and get this major cost block dealt with for us and the company. This is one of the things that in this auditorium that was very first thrown at me by the investor community and the analysts of saying, Sean, until you deal with the labour cost block that you have in pick and pay, where you are paying way in excess of what the industry is paying, you're going to battle to turn pick and pay around. And it is one of the last major hurdles that we have to deal with. But we'll cross it. We'll deal with it. Clothing. Clothing. We know that the clothing industry by and large has had quite a tough year in the last year. You can see in the results across all and you'd be foolish to believe that we would be immune from that. So we didn't have the greatest year in clothing this year in line with the rest of the industry but we must take into account that that is on the back of many, many years of phenomenal growth in pick and pay clothing. I'm pleased to say that Pick and Pay Clothing is again solidly on track. You can see some of the beautiful collections outside there again, and Hazel and her team are solidly back on the front foot again. Our partnerships with FMDE Bucks has continued to yield wonderful benefits for us and extraordinary growth for us in that regard, as has our relationship with APSA. Our Spring Bar partnership is also a really, really, really fantastic initiative for us and we've got some amazing stuff coming up now because we've got five months of incredible rugby coming up now and this obviously then starts to build up going into the World Cup next year and you know rugby has become such a force for unity in this country. You know, if you look at schoolboy rugby today, and you look at ladies rugby today, and you look at the way that rugby is just uniting and bringing communities together, it really is phenomenal. And our sponsorship of the Springboks has been a huge, huge statement in the public space that pick and pay is going nowhere, that we're here to stay. Our beloved Chairman, always taught us that doing good is good business. And despite the fact that we have been under a little bit of pressure in the last couple of years, which you may have noticed, we have not taken our foot off the gas at all in terms of our corporate social investment programs. And it's amazing, you know, even now with the bit of stress that we have inside the company at the moment with these 189 notices that's been served, Every single day, I saw there in our CSI group the most extraordinary work that our people are doing across South Africa in community. And to compare, today has always been about community. And we've continued to drive home. We've continued to drive hard in this. Boxer can say no more. Obviously, We were still in control of Boxer with a 53% position of Boxer. And to a degree, it has been a bit sad for us that we, A, had to list it in the beginning, but it was what we had to do in order to survive. And, yeah, it's just making the team continue. to grow and continue to find lots of opportunity despite the fact that that marketplace is under a lot of pressure. And, you know, we must just think, if you just think of the effect of diesel prices and what's happened to disposable income and people's salaries and wages, you know, when you're spending 25%, 20%, 25% of your money to get to work in a taxi, that market's also going to be under pressure. But Marriott can then always find a way of dealing with these exigencies. So I suppose as I get to the closing piece now before we get to the important questions and answers and we have a look at where we were two years ago, standing up here, we had to put up a business plan and we had to share with you what it is that we were going to do to fix pick and pay because I think if any people at that stage and the conjecture at that stage was basically is pick and pay even going to survive? Where it finds itself at the moment? And we said that we needed to put down a clear business plan that we could start to step through and deal with. And we can see how we started to close out these various blocks that are there. And the one that we are now focusing on is the future fit structure. And that goes in two parts. So we have for the last two years, we've had salary freeze here in the support offices across the company. We've also done an exercise there of having a look at what the future fit means and not just doing a head count saying I need to get X percentage out. No, it was a case of saying what do we need functionally and operationally for this business for the future because that's what you need to do. So we unfortunately had to say goodbye to some people in the company in that regard whereby tasks were reallocated and made more efficient. And as I say, a salary freeze as well. And what we did at the same time was that we left our operational structures in place, understanding that despite the fact that we were having discussions, that we were going to have to get to deal with this at some point in time. You can't do everything on the same day. If we'd undertaken all of these blocks that sit here, all six projects, with the same ferocity at the same time, We would have snapped this company like a twig. You have to sequence these things in life and you have to work out that sometimes you're doing things that are on the positive side and other times you're doing things that are on the negative side. So you're living in this world of parallel universes perpetually. So we will step through this now and get this dealt with and continue to then bring to bear all of these six initiatives that we've put in place. So the outlook for us going forward from here is that after the dip that we had in November, which everybody had, by the way, is October, November, and then we had to put out our little trading update in February, early in this year. I'm pleased to say that our like for likes have really shown strong growth again and have continued to trend in the right direction. But we're not naïve. The market is going to come under pressure. The effect of all of this inflation starting to come in is going to bring some additional pressures onto our consumer base. Our trading margin, we continue to improve our trading margin, which is a key area of focus for us. And that's not about just putting prices up at all. It's about being more efficient in what we do and about continually managing our business on a day-to-day basis. So if we have a look at where we are now, we look forward to the year that lies ahead of us, and we look forward to making more progress on the journey that we're on. So our business plan that we have, and if I had to go back two years and ask myself the question, what would we have done differently two years ago? I can quite honestly stand here and look you straight in the eyes and tell you very little. Very, very, very little. We are in the situation now where as a business to walk in here today and have seven odd billion, 7.2 billion on the balance sheet. Where's Nicholas? Nick, where are you? There you are. At least you've got a job now. You can work out where you put the capital as opposed to what you were doing two years ago. And, you know, I mean, I say this in all honesty. I mean, a lot of the conjecture two, two and a half years ago was seriously, how does the campaign actually get out of this? And I had the unfortunate role at that stage to start doing a little bit of future casting and starting to look a little bit forward into the future. And you will remember when I said that sadly we would most probably have to burn somewhere between 6 and 10 billion of the Boxer value that had been created on the back of the 180 million we paid for Boxer, that the 40 billion of value that had been created that we would have to burn maybe somewhere between. In and of itself, I don't think it's going to be any different to what was forecast then. It may take a year longer. And from an investor perspective, that's a meaningful situation, very, very meaningful situation. But I think one really needs to ask the question, where will Pick and Pay be? In 2030? In 2035? In 2040? Try going to go and shop in Stutterford. Try going to go and shop in Edgars. I mean, Edgars today is basically the health and beauty counter in major shopping malls, for all intents and purposes. The rest have disappeared. And we mustn't for one second think that organizations are immune to these things just because they have a history, just because they had a context. You know, in Zim, where we have our beautiful pick-and-pay, TM pick-and-pay in Zimbabwe, and Gareth and I were there right from the beginning when we made that acquisition of TM in Zimbabwe. You know, if we think back then, Okia Bazaars was a 10-pound gorilla in Zim. And they were part of Delta Corporation, along with the brewery, along with everything else. And they were there. Strong. Leader. And you will see last week in Harare that they've had to suspend all payroll in OK Bazaars. All payroll and wages suspended with immediate effect in OK Bazaars. Sadly, it's busy. It's going to disappear then. It's going to be gone. So we mustn't think. that there is an immunity to all of this. And that is why I say the important thing for me, it's not what happens while I'm here. For me, it's important what happens after I'm gone. That this company has a management team in place, an elite leadership team in place in this company that can operate this company daily, every single day, every hour of the day, 365 days of the year. And to get that in place, it takes time. You heard me before quote Roger Scruton, that English conservative philosopher, who very aptly said, great things are easily destroyed, but not so easily built. And our sad home truth, when we're honest with ourselves, is that we did a lot of destruction in this country from within. And unless you're prepared to front up to the facts in life, you don't get there. You don't get there. And that is in the similar way that we're currently approaching our engagements and our consultations that we're having with our beautiful labor force in Pick and Pay at the moment. And it's hard, because for a protracted period of time, a lot of well-intended concessions were given to our people. We've always had a generosity of this company, of wanting to look after our people, of wanting to be the best players in the industry, of wanting to do all of these good things. But our reality is that at the rate that it has got to, it is no longer sustainable for the company. So, we will deal with this. I've sent a note out today to all of our colleagues in the company. And I was just reflected at the end of the note and I said, you know, for 59 years, we're going to our 60th year next year. And I said, for 59 years, Raymond and Wendy have done everything for everybody in this company. They've done everything for our customers that shop in our stores. They've done everything for the society in South Africa. They've played their role in the evolution of our beautiful country. Now is the time for us in Pick and Pay to ask a simple question. Not what Pick and Pay can do for us, but what we can do for Pick and Pay. And the same goes for every single person in this company. Now is our time to give back a bit and say with gratitude, we've educated our children, we have our homes, we have all of these things, so we will deal with this. We'll deal with this issue that lies ahead of us, and we'll get through this, and then we look forward to a really wonderful year ahead. So in closing, my agony aunt, Florina, when I return to pick and pay, Lorena was obviously here as CFO in the company, and as I say, it turned into my agony aunt. But Lorena, today is your last presentation for the results for financial year end, because we have Tina Rookledge here today, who is taking over from Lorena. And welcome, Tina. And at the AGM, that official process will take place. So it's not as if you're leaving the building today. But in August, that will happen, that you will hand over to Tina, and then we'll be with us until March next year. But, Lorena, I just want to thank you for the extraordinary, extraordinary great negative thinker that you've been. I've always said your CFO needs to be your great negative thinker because, you know, when you're a little bit nuts like I am, you need somebody who's sort of got a little bit of a hand on the handbrake. But, Lorena, it really has been amazing. When you think that a scan two years ago, we were sitting here with all of this monstrous $11 billion of debt, balance sheet upside down, everything the wrong way around. And to step in in one year to deal with that very complex lender situation that we had, to do a rights offer and get that away, and then do the IPO, Boxer, all in one year, and then deal with everything else. Truly a remarkable bill. So you will leave a mark on the company. Thank you. But it's not your farewell yet. You've still got work to do. So thank you very much. So without any further ado, you'll get to Q&A if there are any questions.