Ampol Limited (ALD) Earnings Call Transcript & Summary

Good morning, and welcome to the 2022 Annual General Meeting of Ampol Limited. And I'd just like to say how wonderful it is to be here in person now for a few years of virtual meetings. And I apologize for my croaky voice upfront. I would like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal people of the Eora nation and pay our respects to elders past and present. My name is Steven Gregg, and I have the honor of being your Chairman. As a result of the proxies I hold as Chairman, we have a quorum present, so I declare this meeting open. I will now outline the technology and procedural matters for the meeting. Today's meeting is being held at both in person at the [ mid ] here in Sydney and online via the Lumi platform. The Lumi platform allows shareholders, proxyholders and guests to attend the meeting virtually. In addition to receiving votes and taking questions from the room here in Sydney, shareholders and proxyholders joining through Lumi also have the ability to ask questions and submit votes. There is also a teleconference number for shareholders and proxyholders to dial, listen and ask questions here today. Our AGM online guide for today's meeting is available on the Ampol Investor Centre AGM website. [Operator Instructions] A copy of your submitted questions along with any written responses from our meeting today will be viewed by selecting My Messages. [Operator Instructions] For questions online, Jeff Etherington, our Deputy CFO, is here with me today, will read out the name of the shareholder and their question. We will undertake best efforts to honor and address all questions. However, in the interest of the limited time we have, we may choose to merge some online questions together whether it's duplication in the subject matter. If we do run out of time, we will look to provide direct responses to outstanding questions and post these responses on our website for all shareholders. Voting today will be conducted by way of poll on all items of business. In order to provide you with enough time to vote, I will shortly open voting for all resolutions. At that time, if you are eligible to vote at this meeting, a new voting tab will appear. Selecting this tab will bring up a list of resolutions and present you with voting options. To cast your vote, simply select 1 of the options. There is no need to hit a submit or enter button as the vote is automatically recorded. If you do, however, have the ability to change your vote up until the time I declare the voting closed. To view the documents relevant to today's meeting, select the documents tab, a list of all available documents will appear. When selected, the document will open within the Lumi platform. You'll still be able to listen to the meeting while viewing the documents. [Operator Instructions] Once voting opens, in-room attendees would be presented with a list of today's resolutions on the screen. Select the item you wish to vote on using the scroll wheel and green square to select. Your selected item will appear on screen, press the green square to bring up the voting options, press 1 to vote for; 2, against; 3 to abstain. Use the green square to move to the next item or press the red triangle to return to the full list of items. For each item of business, we will start with questions from the room then move to those submitted through the online porthole and via telephone as well. I now declare voting open on all items of business. For online attendees, the voting tab will soon appear. Please submit your votes at any time. I will give you a warning before I move to close the voting. Please, let me start the meeting today with some introductions. With me on the stage in the left is our Managing Director and Chief Executive Officer, Matt Halliday, exactly sitting in the front row. Also joining me in the room are non-exec directors, Penny Winn, Melinda Conrad, Mark Chellew, Gary Smith, Mike Ihlein and Betsy Donaghey. Today, myself and Penny Winn are seeking reelection and Betsy Donaghey is seeking election as a Non-Executive Director of Ampol. We also have our company secretary, Mike Abbott, and representatives of our external auditors, KPMG, in attendance today. All the members of the Ampol leadership team are also here today, and I would like to specifically make mention of the recent appointments to the team, including Meaghan Davis, who joined us earlier this year as Executive General Manager, People and Culture; Kate Thomson, who was recently appointed as Executive General Manager of Retail Australia; and Mike Bennetts is Executive General Manager of Z Energy. Before we progress with today's agenda, I will provide a review of the 2021 performance and then hand over to our Managing Director and CEO, Matt Halliday. Matt will provide an update on key strategic initiatives from '21, including our ongoing rebrand and the launch of our future energy and decarbonization strategy. Matt will also provide an update on the recent completion of our transaction to acquire Z Energy in New Zealand and an update on trading performance over the first 4 months of this year. 2021 was a successful and transformational year for Ampol. Despite the ongoing uncertainty created by COVID-19, the company delivered strong financial and operational performance and, importantly, ongoing improvements in safety outcomes. We also made further progress executing our established growth strategies, continued our exciting Ampol rebrand and put the foundations in place to transform our business as energy markets evolve. There are many highlights in the past 12 months. We achieved record total sales volumes of 22 billion liters, delivered significant growth in volumes and earnings in our international business and opened 20 new Ampol Woolworths Metro sites as we continue to execute our convenience retail growth strategy. We also remain focused on cost and capital discipline and are delivering on our commitments to shareholders. Our $300 million off-market buyback was completed in January '21. We made strong progress on ongoing cost-out initiatives, and we maximized the value from the decision to continue refining operations at Lytton, supported the dual objectives of fuel security and energy transition in partnership with the government. The release of our future energy and decarbonization strategy put the foundations in place to evolve our business in the future. We have a well-thought-out and considered pathway to achieve our ambition of net zero emissions from operations by 2040 and are taking steps to build new energy solutions for our customers. Late in the year, we also announced a binding agreement to acquire Z Energy in New Zealand, demonstrating significant progress towards our strategic objective of regional market leadership. I'm very pleased that this transaction has recently completed. Ampol delivered strong financial performance in '21 with our highest replacement cost of sales earnings before interest and tax results since 2018. In '21, we recorded EBITDA of $1.1 billion. RCOP EBIT result was $631 million, which is up 57% on 2020. Our record total sales volumes of 22 billion liters represents a significant achievement given the ongoing uncertainty in global markets and substantial demand interruptions caused by COVID-19. Significant growth in international sales volumes more than offset the impact of COVID-19 and compared to supply chain decisions had on Australian sales volumes. International volumes were up 38% on '20 and RCOP EBIT for Fuels & Infrastructure International increased 31% to a record $110 million, demonstrating the strong progress we have made on our strategy to diversify and grow internationally. Elsewhere in Fuels & Infrastructure, safe and reliable operations at refinery drove increased production and improving refining margin environment, with our Lytton team delivering an RCOP EBIT of $159 million and total volumes of 6.1 billion liters. We also completed our refiner review and made the decision to continue operating in partnership with government. Ampol was pleased that this outcome delivers value for shareholders and support the government's priorities in energy security are providing a path forward for our valued employees at Lytton and pursuing manufacturing skills that will be critical for success in energy transition. Convenience Retail recorded an RCOP EBIT of $253 million, with total volumes falling by around 5%. COVID-19 impacts affected most of the second half and offset positive trends in the first half fuel volumes, shop sales and earnings. Rapidly rising crude and product prices also put pressure on fuel margins, particularly diesel margins that take longer to respond but showed improvement towards the end of the year. Despite this, we have delivered a cumulative $53 million of our nonfuel earnings uplift target to date and are on track to achieving our target of $85 million in earnings uplift by 2024. We also continued our focus on reducing labor costs, waste and shrinkage is part of the business. The safety of our people and our customers is paramount and always a priority. In '21, we delivered strong improvements in our safety performance. This was particularly pleasing given the impacts and the disruption caused by COVID-19, and we are proud of the way our people responded to these challenges and maintained operational excellence throughout this year. Across the year, we delivered a considerable reduction in recordable injuries and injuries requiring time away from work. This improvement was the result of our ongoing focus on safety, leadership and our culture and our efforts to deliver targeted programs to improve safety practices and procedures. In Fuels & Infrastructure, we delivered a 59% reduction in our total recordable injury frequency rate and a 27% reduction in our days away from work frequency rate. We also delivered our annual T&I at Lytton refinery, completely instant free, which is remarkable. In Convenience Retail, our total recordable injury frequency rate reduced by 54%. Our days away from work injury frequency rate reduced by over 50%. In '21, we also made several important appointments to the Ampol Board and leadership team and continued our work to build the right workplace culture to support the success our business. In September, Betsy Donaghey was appointed to the Ampol Board as an independent Non-Executive Director. Betsy brings significant experience in the energy and oil and gas sectors to Ampol and has already made a strong contribution to the execution of our strategy. The appointment followed the resignation of Barbara Ward as a Non-Executive Director of Ampol after 6 years on the Board. We also appointed Greg Barnes as Group Chief Financial Officer in July and, in November, welcome Meaghan Davis as our Executive General Manager People and Culture. Recently, Kate Thomson was appointed EGM Retail Australia following the departure of Jo Taylor. And Mike Bennetts has also joined our leadership team following the completion of our acquisition of Z Energy. These appointments further bolster our experienced leadership team, and we are confident we have the skills in place to successfully execute our strategy. In 2021, we also continue to implement programs to further build a culture of high performance and to remove barriers to more courageous thinking and how we make decisions. A key milestone late in 2021 was the opening of our new Sydney head office in Alexandria, a modern and purpose-built space will support our teams to work more closely and collaboratively. We also delivered our annual engagement survey, which showed a pleasing improvement in employee engagement. Engagement levels rose 9 percentage points to 72%, showing we're on the right track to building the culture required to support delivery of our strategy. In 2021, I was pleased that we also made excellent progress in delivering on our commitments to shareholders. Over the calendar year, Ampol has delivered $479 million in capital returns and released $196 million in franking credits, including our fully franked total dividend of $0.93 per share. Our balance sheet remains strong which has enabled Ampol to weather market interruptions and lockdowns and [ forward ] safely and a progress implementation of our strategy. Several capital initiatives were completed in '21. In December, we successfully raised $500 million from an issue of subordinated notes to the wholesale investor market and the domestic fixed income market. We also announced the sale of a further 20 core freehold Convenience Retail sites to an unlisted trust in which Ampol maintains a controlling interest, expecting to release $48 million in net proceeds. Both of these initiatives ensure our balance sheet is positioned well to support our operational priorities and growth strategies. In October '21, we were excited to announce the execution of a scheme implementation agreement to acquire Z Energy in New Zealand. Z Energy's a logical growth opportunity for Ampol, is a natural fit with our established international growth strategy. This acquisition, which was formally reached out and completed this week, is a significant step in expanding our regional presence towards market leadership. Ampol and Z have similar operating models, underpinned by market-leading infrastructure, deep customer bases and a knowledge of local supply chains. A combined entity will create a transit as leader in transport fuels and Convenience Retail with significant additional scale. Through this acquisition, we will leverage our knowledge of the transition to a fuel import market through our established trading and shipping capabilities. And we also believe this capability will play an important role in supporting fuel security in New Zealand. Ampol's established trading and shipping capabilities, regional supply chain and broader fuels infrastructure in Australia will strengthen fuel security as the Marsden Point Refinery transitions in New Zealand and moves to a fuel import market. Combined energy will also create a new and larger platform to accelerate the energy transition from a position of strength, building on our existing work of both organizations in Australia and New Zealand. We look forward to working together with the Z Energy team on our joint priorities and updating shareholders on our success as we move forward. Ladies and gentlemen, in summary, it has been a significant year for the company with major achievements and milestones. Amidst extraordinary levels of volatility, the COVID-19 pandemic and supply chain interruptions, the company has delivered on the strategy. On behalf of the Board, I would again like to extend our thanks to Matt and his leadership team. I'd also like to extend our thanks to all our employees for all their efforts to deliver for customers and shareholders in an ongoing and uncertain environment. And importantly, I would like to also thank shareholders for their continued support of Ampol as we move forward to execute our strategy for the medium and long term. I'll now hand over to our Managing Director and Chief Exec, Matt Halliday, to address the meeting. Thank you.

Thank you, Chairman, and good morning, everyone. 2021 was a significant year for Ampol as we continued to deliver strong financial and operational performance while making progress on key strategic initiatives that provide the foundations for our success in the future. I want to cover off 2 of these initiatives today: our ongoing Ampol rebrand and the launch of our future energy and decarbonization strategy. Our exciting Ampol rebrand continued to gather positive momentum in 2021. 880 sites across our network had been rebranded at the end of 2021. And as of today, we now have 1,215 sites rebranded across our 1,900 store branded network. Customer feedback demonstrates that the iconic Australian brand is resonating strongly with our customers. Our rebranded sites have outperformed control sites on all key performance indicators, including measures of total transactions as well as volume measures, such as total fuel, premium petrol and Ampol card. We've also delivered ongoing improvement in prompted and unprompted customer awareness of the Ampol brand among all demographic segments. Across the year, we continued to introduce our new brand and purpose to our customers and our partners. Our far and wide multichannel brand campaign launched nationally in April to showcase how our business connects and is part of the very fabric of Australian life. This campaign was supported by our major partnerships, including with the National Rugby League as the naming rights sponsor for the Ampol State of Origin and with Red Bull Ampol Racing. We also continued to build on our important work in local communities through the Ampol Foundation with a total contribution to community programs of $3.17 million across the year. Increased employee volunteering and the delivery of major fundraising campaigns for both the Smith family and Surf Life Saving Australia were 2 important milestones throughout the year. In 2021, we released our future energy and decarbonization strategy, including our ambition to achieve net zero emissions from our operations by 2040 and to invest more, a minimum of $100 million, in future energy projects by 2025. Ampol is uniquely positioned to play a key role in the energy transition. Our integrated supply chain capabilities and privileged assets, our Australian brand, our customer relationships and industry knowledge, when combined with our financial strength, set us apart from our competitors and will put us at the very forefront of building new energy solutions to support change right across the Australian economy. The flexibility to repurpose our market-leading infrastructure and distribution networks for multiple uses will support the most efficient pathway for our customers' decarbonization ambitions and really underpins our competitive advantage to participate in new energy opportunities. Our decarbonization efforts and new initiatives to extend our customer value proposition are going to be executed with capital discipline to deliver sustainable returns for our shareholders over the long term. As technology and policy both continue to evolve, we expect the most commercially viable alternative fuel solutions to include a combination of electricity, hydrogen, biofuels and carbon offsets. We're going to focus our efforts on developing our customer value proposition in these key areas to seek to position Ampol as a provider and partner of choice for industry, for government and, importantly, for the local communities where we operate. So to begin the execution of this strategy, in 2021, we announced a funding agreement with the Australian Renewable Energy Agency, or ARENA, to commence the development of a national EV fast-charging network of over 200 bays across more than 100 of our sites. And our first sites will be operational under our new AmpCharge brand over the coming months. In 2021, we also finalized a partnership with Endua to support the delivery of a green hydrogen-powered, off-grid clean energy solution and launched a carbon-neutral fuel pilot program for our B2B customers. We also commissioned our 3-site virtual power plant pilot in Adelaide, which includes on-site solar panels and Tesla powerwall batteries. This project has already showed very good results in reducing Scope 2 emissions from our retail operations. In the first part of 2022, we have continued to make strong progress with our future energy strategy. This includes the launch of our new electric vehicle charging solution, AmpCharge. AmpCharge is going to service customers both at home and on the road at both forecourts and destinations, leveraging existing Ampol infrastructure and customer relationships to ensure Australians can recharge wherever and whenever they need to. At-home branded charging infrastructure is also expected to be developed under AmpCharge with offers to be made available to consumers as part of a broader home energy offer. And finally, as we continue to execute our future energy strategy, we look forward to working with the Z Energy business to accelerate progress towards a low-carbon future. This includes through our commitment to invest a minimum of $125 million between 2023 and 2028, including to support New Zealand's energy transition through investment in e-mobility solutions, infrastructure to support the distribution of biofuels and other terminal infrastructure. We look forward to updating our shareholders as we progress these important strategic initiatives. Late last month, Ampol updated the market on trading conditions and performance in the first quarter of 2022. I'm really pleased to say that we have delivered a strong first quarter result during a period of turbulent operating conditions. On a replacement cost of sales basis, Ampol's earnings before interest and tax were up for the first quarter 44% to $189.1 million compared to the same period last year. Our refining margins improved 93% compared to the first quarter of 2021. And we also successfully continued with our growth strategy execution across both Fuels & Infrastructure and the Convenience Retail business. I think the result again demonstrates both the quality and the resilience of the Ampol integrated supply chain. The business has successfully managed the short-term impacts of Omicron, significant flooding events and the unprecedented volatility caused by the Russian invasion of the Ukraine. In particular, I'm proud of how the Ampol team has responded to deliver such strong operational and financial performance during some of the most challenging conditions in our history while, at the same time, ensuring that we continue to deliver against our strategic priorities. We have now completed the acquisition of Z Energy. And I'm excited by the potential of our 2 companies coming together and look forward to further welcoming Z Energy into the Ampol family over the coming months. On Thursday, April 7, the wastewater separators at our Kurnell terminal overflowed due to very heavy rain. The overflow caused the discharge of approximately 700 liters of hydrocarbon residues, including with the storm water onto Captain Cook Drive and surrounding areas, including local waterways in Kurnell. At Ampol, we are committed to being a positive contributor in the local communities and understand the importance of reducing our impact on the local environment. So events like this are unacceptable. We have acknowledged our responsibility for the overflow. We're currently investigating the cause of the incident to ensure that it does not happen again. So I'd take the opportunity today to again apologize to the Kurnell community for the impacts and ongoing disruptions as we continue to deliver on the remediation works. We continue to work together with the New South Wales EPA, the local council and, of course, the local community to address all of the issues that have been raised and also to provide the resources required to clean up the area, both in the immediate and the longer term. Finally, while there continues to be uncertainty over the timing of the economic recovery, in 2022, we will continue to focus on strong operational performance to execute our strategy and to deliver improved returns and growth for our shareholders. This will include the expansion of our international operations towards regional market leadership as we work to integrate the Z Energy team in New Zealand following the completion of this important acquisition. We'll also continue to execute our Convenience Retail growth strategy and further strengthen our position as a proud and independent Australian company through the Ampol rebrand. Finally, we will continue to progress our work to decarbonize our own operations and support and shape the energy transition. Ampol has always been about ensuring Australians can get where they need to go, to move around, to do business, to transport goods from one place to another and to stay connected. That will remain very central to our purpose as we move forward and will underpin the development of new energy solutions for our customers. So on behalf of the leadership team, we would like to thank our employees for their resilience and performance in a tough environment over the past year. Our financial and operational results reflect the skill, commitment and passion that our team shows each and every day to operate safely and to deliver for our customers. We also thank our business partners, suppliers and contractors that have worked with us to deliver safely and reliably every day for our customers. We would also like to thank Ampol's shareholders for their continued support as we look forward to another successful year in 2022 as we continue to build on the proud legacy of this great Australian company. I'll now hand back to our Chairman, Steven Gregg.

I would like to now open up the meeting to general questions. There will be an opportunity to ask questions about each resolution later in the meeting before going to the voting outcomes of each resolution. A reminder that we will first take questions here in the room. We will then go to the Lumi platform for questions. And finally, we will take questions from the phone if we have any. I will now again outline the technology and procedural matters for the meeting. [Operator Instructions] A copy of your submitted questions along with any written responses from our meeting team can be viewed by selecting my messages. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will surely open voting for all resolutions. At that time, if you are eligible to vote at this meeting, a new voting tab will appear. Selecting this tab will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit the submit or enter button as the vote is automatically recorded. You do, however, have the ability to change your vote until the time I declare voting closed. [Operator Instructions] Once voting opens, in-room attendees will be presented with a list of today's resolutions on the screen. Select the item you wish to vote on using the scroll wheel and green square to select. Your selected item will appear on the screen, press the green square to bring up the voting options. Again, press 1 to vote for; 2, against; or 3 to abstain. Use the green square to move on to the next item or press the red triangle to return to the full list of items.

I think we have one question in the room from the ASA. It's probably you, Roger.

Roger Ashley, representing the Australian Shareholders' Association. My fellow monitor here, Don, and I would like to thank the company's representatives for their responses to our pre-AGM questions, which are documented in our voting intentions shown online. In particular, we are pleased that there are now strategies in place that seek to find Ampol's place in the future of declining use of fossil fuels. I have 2 questions. First, we note that Gladstone in Queensland has been selected this location for a new $500 million of renewable diesel and sustainable aviation fuel by a refinery. How does Ampol see this investment impacting their own biofuel development plans? And did you get equivalent government support?

I'll turn it over to Matt to answer.

Yes, thank you very much for the question, Roger. Biofuels is very much an important part of our future energy and decarbonization strategy as we look to deliver solutions for our customers, especially for the heavier side of transport and in those hard-to-abate areas, particularly around aviation fuel, but potentially mining also. So we see ourselves importantly playing a key role with our customers on working closely on which projects make sense from a biofuels point of view. And then looking at where we think participation in those projects from a manufacturing standpoint might also make sense. So we have a significant land position right around the country, including at Lytton, up in Queensland. So Gladstone is, of course, one opportunity that's being progressed, but we continue to monitor a number of others and evaluate them to see what the best options might look like.

When you say look at options, is Gladstone an option for Ampol? Where does that fit in terms of your strategy?

Yes. So we're continuing to assess a broad range of locations. And we're currently very focused on evaluating feedstock options that will support the most efficient domestic biofuels supply chain, and that's one of the very key aspects of the competitiveness of any project. So Gladstone is one possible option, but there are a range of them, including how we could use our existing land and infrastructure.

Okay. Can I ask my second and last question? Will Chevron be able to use Caltex trademark and logo in Australia? If so, does this pose a threat to your business in the future?

Thanks, Roger. Yes, they will. They, as you're aware, have bought a small number of sites from Puma. And when the agreement with them runs out in about 6 to 12 months, they will be able to rebrand those sites to Caltex. We don't think it's an issue because there's very little overlap in our sites. The site mapping is very different to ours, and the scale is very different. So yes, they are allowed to, but it won't affect us.

Okay. Thank you.

Thank you, Roger. [ Mr. Hillman ], I believe you have a question.

We all appreciate this is a very sensitive time for a company such as Ampol with climate change issues and seeking to have satisfactory approaches to climate management that's at least within the purview of the company. My question is partly related to that. Congratulations, by the way, on the aims of the company to reduce the net zero by 2040. I would like to ask what specific amounts have been paid by the company in any form, whether they be a donation, an attendance at a dinner or an event or anything else, conference, et cetera, to any political parties. And if you could specify what amounts to what political parties. And I would also ask that if those amounts are different between political parties, why are they different? And the other final part of that question is, if any of shareholders's money is being given to political parties, what do you expect in return? Now if that's not a favorable treatment, if, in fact, the company seeks nothing in return, then why are you paying shareholders' money to any of these political parties?

Thanks for the question. Let me have a go, but I might just turn it over to Matt for the exact numbers. We are very, very conscious of your point of view on this one. And every year, we spend a very, very small amount of money. I think it's less than $100,000 or thereabouts. And it's spread equally between the labor and the coalition side of the government as more to buy into their discussion forums. So they have forums where they get business around tables and is simply -- so we have a seat at a table, along with everybody else, so we can understand what's going on. We don't seek anything from government on this. We have no wants, we have no desires. And we certainly understand and appreciate the sensitivities of that. So let me check, is that the right amount?

Yes. So it's $77,000 in 2021. It was split almost exactly equally, and we're very conscious of ensuring that it is split. And as the Chairman mentioned, we do believe that it's important to have a seat at those industry tables to ensure that we can advocate for the policy outcomes that we believe are in the interest of the country and are in the interest of the company. And we do have a clear strategy for decarbonizing our customers' operations but also ensuring that fuel security, energy security, which are going to be very important to an orderly transition, are well acknowledged in government.

Most exactly equally. Can you be more specific about the amounts that are given to the various political parties?

Sorry, I can't be more precise other than within a few dollars, it's 50-50. So there is no material difference in terms of the support or the contributions that we made to either party.

So 50-50, coalition and labor.

That's correct.

We're very conscious on sensitivity of these sort of things. So we don't spend much. It's very minimal, equally split, and we don't ask anything in return. Right, I believe there are no further questions from the room. So thank you for that. Jeff, are there any questions online?

Mr. Chairman, we have a question from Ms. [ Natasha Michelle Lee ]. The question is the partnership with Woolworths is important strategically for the company. But could you give an overview of how the partnership works, particularly issues such as staff costs, to Woolworths pay rent on the premises and profit sharing?

Sure. Look, I'm going to get Matt to delve into the details of this. But look, it's a partnership we've had with Woolworths for a number of years. We have a desire to roll out around 50 metro sites nationally. We're about halfway through that program. Within the next 12 months, hopefully, we'll be fulfilling that program. It is simply their branding and their supply chain on our sites. And so far, it's working out very well. It's taken a while to get there, but it's working out very well. But Matt, do you want to go in the details of the numbers?

Sure. It is an important relationship that we have in place with Woolworths. It's been in place for a number of years. It essentially has 4 components. It has the Shopa Docket redemption program for fuel. There's a wholesale arrangement in place for certain product lines in store. There's loyalty. And then there's the rollout of metro stores across appropriate sites within our network. As the Chairman mentioned, we have around, I think, just over 30 sites in the network at the moment, and we'll have 50 sites within the network by the end of this year. So that will be an important part of our network to then look at where we can take the partnership from a Convenience Retail point of view from that point in time. I should note that it is an Ampol site that we're building those metros. So it's our own either leasehold or freehold property, and it is our own capital contribution and then staff and P&L cost and revenue.

There are no further questions.

Thanks, Jeff. Any questions from the phone line?

There are no questions on the phone.

Great. Thank you very much. I can see no further questions. So therefore, we'll move now, if that's okay, to the formal items of business today. As notified to the ASX, all resolutions will be decided today by poll. I thank all shareholders for their efforts to submit proxies in advance of this meeting. A number of the shareholders had appointed the Chairman as proxy for today's meeting. Where these proxies are open, I intend to cast votes in favor of each resolution. The first item of business relates to the 2021 financial reports. The Ampol's '21 annual report has been released to the ASX and is available on our website. For the purpose of today's meeting, the financial report, the directors' report and independent auditor's report for the year ended 31st of December 2021 are put before today's meeting. I would now like to open the questions on the financial reports to the room, please. There will be an opportunity to ask questions on other items of business later. A reminder, we will first take questions here in the room. We'll then go to the Lumi platform for questions. And finally, we'll take questions from the phone, if we have any. Okay. No questions in the room. No questions online, Jeff?

No questions.

Any questions on the phone?

No phone questions.

Thank you. Thank you very much. The Notice of Meeting contains the following matters to be voted on by shareholders today: the adoption of the 2021 remuneration report, my reelection as a director of Ampol, the reelection of Penny Winn as a director of Ampol and the election of Betsy Donaghey as a director of Ampol and the granting of the 2022 performance rights to the MD and CEO and the reinsertion of the proportional takeover provisions as Clause 81 of the company's constitution. The voting directions for the proxies for each resolution will be displayed on your screen. Proxy results of the poll on each resolution will be displayed in the room before we move to the next item of business. The final number of votes will be advised to the ASX and will also be available on our website after the meeting. The next item of business is the remuneration report. The vote on this resolution is advisory only and does not bind the directors of the company. However, I will now answer questions on this item of business, if it's okay, please. Okay. So I believe there are no questions in the room. Jeff, one question.

Yes, and that question is from Ms. Natasha Michelle Lee. The question is, while I've been pleased with the performance of Ampol and thank the Board for this, I note that the long-term incentives cover a 4-year period. Many companies have extended this period to 5 years. Will the Board move to extend the long-term incentive eligibility to 5 years?

Thank you for the question. The long-term incentive plan for the company, I think, is about right at the moment. Having said that, we will be reviewing it this year to take into account, I think, factors that are going to involve the company over the next medium to long term. And one of the issues we will deal with is a restructuring, which may involve a longer period of vesting, but that has not been decided as yet. Thank you for the question.

There are no further questions.

Thank you, Jeff. Any questions from the phone?

No phone questions.

Thank you. As there are no further questions, the proxy results for the voting are on the screen right. Thank you. It looks like a very resounding pass here. Thank you very much for the support of shareholders in that. The next item of business for the meeting is my reelection as a director of Ampol. And as a result of it, I'll hand over to Mike Ihlein to chair the meeting for this agenda item. Thanks, Mike.

Thank you very much, Steven. And we will now consider and vote on the reelection of Steven Gregg as a director of Ampol. Steven brings to the Board very broad experience and knowledge gained as an executive and a director of a number of organizations across a range of sectors, including significant experience in investment banking and management consulting. Steven has and continues to make a valuable contribution to the Ampol Board, both as a director and, of course, as our Chairman. The Board unanimously supports Steven's reelection as an independent Non-Executive Director. I will now ask Steven to speak to his reelection before we take questions. Steve?

Thanks, Mike, and good morning, ladies and gentlemen, in the context of this reelection. It's a pleasure to have been asked to put myself up for reelection to the Ampol Board this morning. I'm particularly proud of Ampol, what it's been through and what it's become over the last 6 years and particularly my involvement in its journey. Over the last 6 years, the company has been through, I believe, a substantial transformation from having a major shareholder in Chevron and operating under a Caltex brand to a fully and broadly owned public company and the transformation to the iconic Ampol brand you see before you today. I would like to think that I have, along with my fellow directors, made a large input and contribution in this transformation. And particularly my background in consulting, investment banking as well as some long-standing Board directorships have contributed to this transformation. Ladies and gentlemen, Ampol is a wonderful company, and it would be an honor to continue serving the shareholders of this company into journey as it transitions from a leading provider of carbon-based fuels to new energy sources. I would like to thank all the Board and all the management for your support and particularly the shareholders for your support in the past and hopefully in the future. Thank you.

Thank you very much, Steven. I will now take questions on this item of business. Firstly, any questions in the room? No questions in the room. And questions online, Jeff?

There are no questions.

And are there any questions on the phone?

There are no phone questions.

As there are no further questions, here are the proxy results for the voting on the reelection of Steven Gregg. I think you just got there, Steven, just squeezed in. And it's clear from those numbers that Steven will be reelected. Congratulations, Steven, and let me hand back to you as our Chairman to conduct the rest of the meeting. Well done, Steven.

Always nice to see support from the shareholders. Thank you. The next item of business is the reelection of Penny Winn. Penny brings to the Ampol Board a significant Australian and international transformational expertise and business integration and technology supply chain and retail marketing experience. Prior to her appointment to Ampol, Penny was the Director of Group Retail Services with Woolworths Limited. Penny has over 30 years' experience in retail with senior management roles in Australia and internationally. The Board unanimously supports Penny Winn's reelection as a known Independent Non-Executive Director. And Penny, I will now ask you to speak to the audience for your reelection.

Thank you, Chairman. Good morning, fellow shareholders. I'm honored to have the opportunity today to present myself for reelection to the Board of Ampol. Since my initial appointment in 2015, I believe I applied myself diligently to my role as Director and, more recently, as Chair of Safety and Sustainability Committee. In addition to Ampol, I'm a Non-Executive Director of CSR Limited; a Non-Executive Director of the Amphora Group, which trades as Accolade Wines; and I have also been selected to serve Ampol as a non-Executive Director on the Z Energy Board as we work through the integration of that business. As the Chairman mentioned, prior to commencing my non-executive career, I was employed in retail leading business units with specializations in operations, logistics, digital enablement and strategic change. These skills and experiences remain highly relevant to Ampol. As Chair of Safety and Sustainability, I have stewarded the development and execution of our broader sustainability agenda with a focus on risk management and climate action. This is a continuing journey, but I am confident that we have the right strategy, people and processes to be able to manage the challenges and the opportunities, both today and into the future. I recognize the trust that shareholders place on directors to carry out their duties to the highest possible standards, and I remain ready and willing to continue to act so on your behalf. If reelected, I promise my full commitment, and I'll continue to work diligently to create value for you, our shareholders. Thank you for your support.

Thanks, Penny. I'll now answer questions on this item of business, please. I don't see any questions from the floor. Jeff, any questions from you?

There are no questions.

Thank you. Any questions from the phone, please?

There are no phone questions.

Great. Thank you very much. As there are no further questions, the proxy results for voting are, Penny have squeaked in. Well done. Congratulations on being reelected to this wonderful company.

Thank you. And thank you, shareholders, for your support.

Yes. Thank you very much. The next item of business for this meeting is the election of Betsy Donaghey. Betsy brings over 30 years' experience in the energy and oil and gas sectors, including technical, commercial and executive roles at Energy Australia, Woodside Energy and BHP Petroleum. She is currently a Non-Executive Director of AEMO Cooper Energy and Cooper Energy Limited. The Board unanimously supports Betsy's election as an independent Non-Executive Director of the company. And I'll now ask Betsy just to speak to her election, please.

Thanks, Steve. I've enjoyed my brief time on the Ampol Board as an appointee. I hope that today, you see fit to elect me to the Board. Steve has touched on my executive and Board experience in the oil and gas industry, energy retailing and other resource companies, with a heavy emphasis on strategy, managing risk and managing big projects, all of which translate well to Ampol. As well, my time on the Solar Flagship Council, the Australian Renewable Energy Agency and my current directorship on the Australian Energy Market Operator will help me contribute to the implementation of Ampol's future energy strategy. In my short time at Ampol, I've become quite excited about working with Ampol, about working with my fellow directors, you know most of them. With the excellent people of Ampol, with a company that has a more direct impact on the community every day, the way Ampol does and the way input takes it seriously and the way Ampol combined a strong focus on delivering shareholder value today as well as delivering a sustainable future. And I ask that you let me continue to be a part of that.

Thanks, Betsy. I'll now answer questions on this item of business from the floor, please. And I note there are none. Jeff, any questions from you?

No questions.

Thank you, Jeff. Any questions from the phone?

There are no phone questions.

Thank you very much. As there's no phone questions, no questions from the floor or online, we'll look at the results and for voting for Betsy's election. And Betsy, you've got almost a perfect score. And we're working on the Board. Thank you very much, Penny and I are jealous.

Thank you.

Okay. Our next item of business is the grant of the performance rights to the Managing Director and CEO. Ampol is seeking shareholder approval for the grant of the performance rights to Matt Halliday, Ampol's MD and CEO under the Ampol equity incentive plan as his long-term incentive award for 2022. It's the current intention that the performance rights awarded to Matt Halliday vest, they will be satisfied with shares purchased on market, which does not require shareholder approval under the ASX Listing Rules. However, the Board considers it appropriate to seek shareholder approval as a matter of best practice. The key terms relating to the grant of performance rights are set out in today's notice of meeting. I'll now answer questions on this item of business, please. Okay. I noticed there are no questions in the room. Jeff?

There are no questions.

Thank you, Jeff. Questions from the phone?

There are no phone questions.

Thank you. As there are no further questions, the proxy results of the voting are going to be put up. And Matt, it's a great endorsement to view that such a high level of support. Thank you. The next item of business is a special resolution being put to the shareholders to reinsert proportional takeover provisions in the company's constitutions as of Clause 81, the same form as those approved in the 2019 Annual General Meeting. The provisions set out in Clause 81 of the constitution are designed to assist shareholders to receive proper value for their shares if a proportional takeover bid is made for the company. Under the Corporations Act, these provisions must be renewed every 3 years or they cease to have an effect. These provisions have expired -- they will expire or will have expired after 9th of May 22. If approved by shareholders, Clause 81 will operate for a further 3 years from the date of meeting, unless earlier reviewed. I'll now answer questions on this item of business, please. I see there are no questions in the room. Jeff?

There are no questions.

Thank you. Any questions on the phone, please?

There are no phone questions.

Thank you. As there are no further questions or any questions, the proxy results for voting are to be put on the board. That concludes our discussion on the items of business today. For ease of reference, the slides are shown again on how to vote using the Lumi online platform and the voting handsets in the room. In a couple of minutes, I will close the voting system. Please ensure that you have cast your vote on all resolutions. I will now pause to allow you time to finalize those votes. [Voting]

Okay. As indicated earlier, the final results of the polls will be provided to the ASX today and will be placed on the company's website. Thank you all for your patience in working through this hybrid AGM, and thank you for all your support during this year. On behalf of Ampol Limited's Board and management, I sincerely thank our employees, customers, partners and shareholders for your continued support of our wonderful company. We look forward to updating you as we continue to execute our strategy. To close the meeting, we would like to share a wonderful video update on Ampol's future. Thank you.