ARN Media Limited (A1N) Earnings Call Transcript & Summary

So good morning, ladies and gentlemen, and welcome to the Annual General Meeting of HT&E. On behalf of the Board and in the spirit of reconciliation, I begin today by acknowledging the traditional custodians of the country in which we meet today across Australia and the continuing connection to land, sea, sky and community. Today, I'm on Gadigal land, part of the Eora Nation, and I pay my respects to the elders, past and present, and extend that respect to all aboriginal and Torres Strait Islander people. My name is Hamish McLennan. And with me in this room today are my fellow directors, Belinda Rowe, Roger Amos, Paul Connolly and Alison Cameron. Also joining us are our CEO, Managing Director, Ciaran Davis; our CFO, Andrew Nye; Company Secretary, Jeremy Child; and Louise King, our auditor from PwC. I'm informed there is a quorum present and accordingly declare the meeting open. Today's meeting is being held in person and online. And while we have all become familiar with such formats, I will provide instructions for raising questions and voting prior to the formal part of the meeting. 2022 delivered a strong result in what was a year of considerable change. Our core business maintained its market-leading position. The integration of our regional acquisition has been transformational. Digital investments are beginning to gain traction, and we are well down the road to deliver on our goal of being the best audio business in Australia. Our revenue grew 53% to $345 million, and underwriting EBITDA was also up 53% to $92 million. However, towards the second half of 2022, a range of macroeconomic factors impacted advertising markets and, consequently, media evaluations from which HT&E is not immune. In accordance with accounting standards, the full impairment review was conducted at the end of 2022, resulting in a noncash impairment charge of $250 million for the period. These standards require the company to consider both internal and external factors, such as the market capitalization of the business at the year-end relative to underlying assets, interest rate changes, the broader macroeconomic environment and consensus estimates, to reach a conclusion on the recoverability of intangible assets. The 12 months to December 2022 saw the share price of all media companies, including HT&E, come under significant pressure despite our business recording a good operational performance and the fundamentals of the audio sector remaining strong. It is important to call out our views on the future of audio, including our strategic plans, the benefits we see from ARN Regional acquisition and long-term forecasts that have not changed. We are very confident in the growth trajectory of ARN over the coming years and the importance of ARN Regional in providing a long-term strategic advantage for the company. Over the past number of years through prudent financial management, astute decision-making and good execution on strategic initiatives, HT&E has one of the strongest balance sheets in the Australian media sector today. In 2022, we exited our long-held position in Soprano for $66 million in cash, a terrific result from a minority position. We've been looking to secure the right exit for a number of years. Cash consideration was a priority, and I'm pleased to -- pleased that the transaction was finally completed in March of this year, generating a good ROI for shareholders. We also completely exited Luxury Escapes, selling our final shareholding for $8.8 million in cash. Our regional acquisition meant that we had to sell one of our stations, 4KQ in Brisbane, securing $12 million on a multiple of 12x over, which is a good outcome for a single station disposal and reinforces the value of radio assets in Australia. HT&E is strong -- is a strong cash-generating business with operating cash flows of $55 million last year. We have very little debt and access to undrawn credit facilities should they ever be required. Since I took over as Chair, I've been committed to sharing the rewards of our efforts with shareholders. It is a responsibility taken very seriously. And today, I assure you that this commitment remains as strong as ever. The company declared a fully franked dividend of $0.05 per share at the half year and another $0.052 in February. We've also uplifted our dividend policy, increasing the payout ratio from -- or to 65% to 85% with a commitment to pay the higher end of net debt if it's under 0.5x. We also executed an accretive on-market buyback of shares. Whilst the payment of frank dividends remains our preferred means of capital management with our share price where it is, we continue to believe HT&E is undervalued. And at the current valuation, the buyback remains ongoing, and we believe it is in the best interest of shareholders. This decision underscores our confidence in the business and our firm belief that our shareholders should reap the rewards for their support. We understand the importance of dividends in creating long-term shareholder value, and we remain resolute in our commitment to sustaining high dividend payments well into the future. However, it is crucial to acknowledge that our commitment to high dividends is not at the expense of strategic initiatives and long-term growth opportunities. We are mindful of the need to allocate resources prudently, capitalizing on emerging trends and embracing innovation. Our aim is to strike the right balance between rewarding our shareholders and fueling the sustained growth of the business, and we remain open to proactive -- to being proactive in assessing value-accretive opportunities that are in the best interest of all shareholders. Against this backdrop, I believe the company is exceptionally well positioned to deliver organic growth in its core activities, while at the same time, a clear pathway strategic -- is to strategically invest in future audio opportunities will always be pursued. ARN has a track record as the leading radio broadcaster in the country, with continued #1 ratings performances in many key markets. Our strategy to recruit and retain the best on- and off-air talent continues to pay off, and our focus is to increasingly leverage our investment in talent and content across all distribution channels. Secondly, connecting with communities via broadcasting live and local content is at the core of what we do. It's what sets us apart from all other media in Australia, and we are committed to maintaining its uniqueness. Once we completed the acquisition of what we now call ARN Regional, we wasted no time getting to groups with the content and commercial strategy of the business and the unique offering these stations play at the heart of regional Australia. I'm pleased to say that the acquisition and merging of our metropolitan and regional businesses -- business units has progressed very well over the last 12 months and is ahead of schedule delivering increased audiences, delivering national revenue synergies and continuing to grow local revenues. Thirdly, we are investing strategically to realize new opportunities in the increasing trends towards digital audio consumption, particularly in the area of podcasting and live listening to radio and digital formats. ARN's digital audio revenue growth accelerated to 28% in H2 2022. And while $15 million represents less than 5% of our total revenues, the strong demand for live and on-demand audio in digital formats is generating new interest from our commercial partners, who have an appetite to reach audiences with specialized data and targeting. We are confident the investments we are making in content, distribution and commercialization will see digital audio contribute meaningful revenues and earnings in the years to come. With ever-increasing ways to consume radio content on mobile phones, smart speakers and desktop computers, our industry body, Commercial Radio & Audio, has been working on developing enhanced radio listenership methodologies to capture this digital audience that is due for release this year. Ciaran will talk later on these developments, but it is pleasing to see the industry pull together and work towards finding pathways to compete against global platforms. This industry body is working well and working hard on matters of importance to our industry. We all know the commercial radio listenership in cars is significant. 78% of Australians listen to the radio in their car, and 31% of all listening takes place in cars. Increased numbers of these cars have connected increasingly. Numbers of these cars have connected entertainment systems. Radio must be afforded prominence in connected cars and smart speakers, and ARN is working with our partners at Commercial Radio Australia to advocate for government action in this area. Without this prominence, Australian local communities will lose access to local news, community announcement and emergency event information, as well as news and entertainment. Radio stations should be easily discoverable by users on car entertainment systems and smart speakers, and car entertainment and smart speaker platform operators must be prohibited from restricting access to Australian radio. To finish, HT&E remains confident about the prospects and positioning of its core radio business, the delivery of the business case developed acquiring ARN Regional and the emerging opportunities in digital audio. We have developed market-leading brands, investing in talent to deliver audiences [Technical Difficulty] revenue. [Audio Gap]

Impact H2 advertising sentiment, but highlighted the alluring and resilient nature of radio. Revenue post acquisition was $345 million, with EBITDA up to $92 million and EBIT $72 million. NPAT grew over 57% to $45 million, with EPS rising to $0.146 per share. In radio, we delivered record radio listenership and now broadcast to over 8 million nationally, nearly 1/3 of Australia, and we produced another #1 metropolitan network share performance. In contrast to other conventional media, ARN is attracting and expanding audiences, not only through the realm of radio broadcasting, but also via cutting-edge digital platforms and new innovative formats. Our podcast audience saw growth of 54%, and we are encouraged that this new audience is not coming at the expense of radio, but proving highly complementary. Digital audio is now a mass media. SMI figures show that the digital audio market was the fastest-growing digital market up to the 31st of December 2022. While PwC's entertainment and media outlook found that digital audio revenue, including streaming, is forecast to reach $3.7 billion by 2026. We have made considerable progress growing new digital audiences and revenue opportunities, and we expect our digital audio operations to be earning positive on or before the end of 2024. We launched CADA, creating a national multi-platform youth brand. Growth reach has grown to over 3 million, and we are pleased that audio is a growing part of this audience's daily media consumption. The focus in 2023 is to accelerate the migration of CADA audience to more digital audio listening and formats. And we are really encouraged after only one year of ownership of our regional business. It is a fantastic network of stations, and we are lucky to be working with the team of people in the regions who are so committed to their listeners and their community. Local revenues grew 7% from a very strong year in 2021, and we delivered on our business case acquisition case of $7 million in national revenue synergies. A huge amount of work is going on in the finalization of all the systems integration which we expect to have completed ahead of schedule by the end of Q3 this year, rolling out a single inventory and finance system across the whole business, as well as providing our clients with a single invoice, making it easier to work with us across metro and regional markets. On Slide 7, we show the statutory result for the year. Group revenues were up $120 million year-on-year, accelerated by the acquisition of our regional network. Total costs increased $91 million or 9% on a pro forma basis and included our first year investment in new platform, CADA, and the ongoing investment in new digital audio formats, content and commercialization. This investment impacted underlying group EBITDA, back 4% on a pro forma basis, although up 53% on '21's restated numbers. Better market conditions delivered improved revenues and earnings for Cody, up 9% following the completion of the Hong Kong Tramways network contract in May. Earnings were up 31% on a like contract basis. And with the Hong Kong economy continuing to recover post-COVID, the business is now cash flow positive and actively investigating tender opportunities for contracts as they arise. We have an exceptionally strong balance sheet as of 31 December with net debt of $61 million. This leverage has further improved following receipt of Soprano proceeds of $66 million in March and now stands at less than 0.5x. We are employing a low capital-intensive investment model for our digital growth program and taking full advantage of our long-term technological partnership with global platform, iHeartRadio. There is also good tenure and undrawn limits remaining on the group financing facility, which means, overall, our balance sheet, which we believe is one of the strongest in Australian media, provides confidence as we invest in digital audio formats, platforms and proactively consider value-accretive opportunities. Because opportunities will present themselves, the world of audio and audio entertainment has never been more exciting, and we are seeing advancements in technologies such as AI, increased accessibility and changing consumer preferences that are all contributing to how audiences engage with audio and newer forms of digital audio content. As more and more people embrace podcasts, streaming and voice-activated devices, the demand for high-quality audio content will continue to grow. This presents exciting opportunities for us to tap into the expanding audio market and engage in a highly receptive audience. At ARN, we are building a vision that aims to provide the most complete audio experience for our listeners and the most comprehensive audio solutions for advertisers. Our approach to value creation is centered on 5 key pillars: to continue generating strong returns from our core radio assets, to invest in new digital audio formats, to distribute that content as widely as possible, to build an integrated audio business and to embrace digital transformation and AI innovation, where our focus is on harnessing the power of automation, artificial intelligence and data-driven insights to enhance our operations, drive efficiency and deliver exceptional experiences to our listeners and advertisers. Our core radio business has been the foundation of our success for many years. With a loyal listener base and established relationship with advertisers, we are well positioned to leverage our strengths and continue generating strong returns. 2022 was our most successful year ever for ratings. And while strong ratings are not the only determinant of winning revenue share, they are a key ingredient. We continue to invest in the best on- and off-air talent, and that investment is paying off, with record listeners approaching 6 million per week in metro and 8 million nationally. We are the #1 radio network 25-54. And 10 plus. KIIS 1065 was Sydney's #1 FM station, #1 FM breakfast, #1 FM Drive. Kyle & Jackie O continue to go from strength to strength, achieving their highest ever share reach -- and reach in 2022. WSFM recorded its highest reach with Jonesy & Amanda, the #2 breakfast show in the city. Gold 104.3 was number -- was Melbourne's #1 FM station, #1 FM Breakfast, #1 FM Drive with the station achieved its highest share since 2019 and its highest reach ever. Christian O'Connell is doing a terrific job and has been the #1 breakfast show in that market for 23 surveys. And the launch of CADA helped grow overall radio listening audiences at the younger end by 21%. Tight cost control in radio saw margins improve to 33%. And with CapEx low in radio, the business generates strong cash flow. Ratings momentum has continued into 2023. But obviously, with the current economic uncertainty impacting advertising sentiment, I think it is useful to highlight the role of radio in the challenging cycle we are seeing at the moment. Firstly, let's acknowledge the enduring power of broadcast radio. Despite the proliferation of digital media, radio still has a strong presence in people's daily routines, providing them with a sense of connection, companionship and discovery. And radio has consistently proven to be an efficient and effective medium in challenging times. Its role among advertisers and ad agencies is well known, with radio spend remaining consistently within the 7% to 8% range of total ad spend despite the growth of new forms of media and social advertising over the past decade. Radio is a highly accessible medium, reaching millions of people across diverse demographics. Moreover, the various brands catering to specific interest, preferences and geographic areas, businesses can now effectively target their desired audience without wasteful expenditures. It offers highly affordable advertising solutions. Production costs for radio ads are lower than those for television or static outdoor, making it a viable option for companies operating on tighter budgets. Additionally, radio allows for easy adoption and modification of advertisements, enabling businesses to respond quickly to changing market conditions without incurring significant expenses. Radio's flexibility and immediacy are crucial advantages that make it much more efficient. Lead times for production are short with real-time updates and adjustments to ad campaigns. This agility enables our clients to respond swiftly to market dynamics or short-term trading offers. In a fake news world, building trust and maintaining customer engagement are paramount. Radio continues to earn the trust and loyalty of listeners. 56% now rank audio talent as the most authentic voices in their community, well ahead of TV, news websites, outdoor billboards and social media. Moreover, the intimate nature of audio listening fosters a connection with the audience, facilitating emotional engagement and creating lasting brand associations. And finally, we saw during COVID the strength of communities rallying together to support local businesses. With about 70% of our regional revenues generated from smaller direct clients, radio plays a significant role in fostering this sense of community and encouraging local support. Businesses tap into these ties and engage with local driven initiatives, further enhancing their impact and influence. Our company is well positioned to capitalize on the opportunities that lie ahead in digital audio. Podcasting is now a mass medium in Australia and has experienced explosive growth and widespread adoption in recent months, reaching over 9 million Australians every month. This trend shows no signs of slowing down. With advancements in technology, easier access to content and the growing preference for on-demand and personalized experiences, podcasting has become a mainstream form of education and entertainment. Since we launched the iHeartRadio podcast network, we have been the leading publisher for 36 consecutive surveys. And in April of this year, we reached 6.6 million combined listeners with 29 million monthly downloads. We have more podcasts that deliver over 1 million monthly downloads than any of our competitors. And we have 5 of the top 10 podcasts, including #1 catch-up podcast and #1 for crime, relationship, finance and health and wellness genres. The advertising model is building, with brands eager to tap into engaged and captive audiences. As the podcasting industry matures, advancements in data collection and analytics allow for more precise targeting and measurement. This data-driven approach not only enhances the value proposition for advertisers, but also maximizes the revenue generation by delivering the right message to the right audience at the right time. The advent of live streaming has opened up a new business dimension for engagement with the radio businesses. Live streaming provides an interactive and real-time experience that allows us to connect with our listeners in unprecedented ways. It fosters a sense of community, enables immediate feedback and opens doors for collaborations and partnerships between content creators and brands. I referred earlier to PwC's forecasted growth in live streaming, and I'm delighted to say that the radio industry has done a huge amount of work to help grow radio's addressable audience. After many years of exploration and planning, CRA will soon launch Radio 360, a new measurement system that will add the streaming logs of millions of devices listening to live radio to the existing survey data of 60,000 people. It will give radio planners and buyers improved insights through more granularity of data and a better planning tool. Further, it future-proofs the audience measurement system, enabling ingestion of new digital data sources such as podcasting listening data. It brings great optimism for the future of audio planning across channels and devices and will be embraced by advertisers seeking more accountability and addressability. Over the past 3 years, ARN has seen a 78% growth in live streaming and now has over 10 million hours consumed a month. While material revenue growth from live streaming is not expected in the short term, we believe the introduction of this addressable data for radio is a hugely positive step forward for the industry and will add another layer of digital capability to our revenue model. We see the distribution of our content across many platforms as possible as essential to our success. Expanding the availability of our content results in increased accessibility and greater opportunities for advertising and partnerships. Diversifying our revenue streams through broad content availability ensures we are not overly reliant on any single platform and making our business more resilient and capable of sustainable growth. We appreciate we do not have right to exclusivity -- to exclusive control of our own audio -- sorry, excuse me. We appreciate we don't have the right to exclusively control or own our audience's ego system. So making our content available as widely as possible is a really important differentiating factor for us. Today, our content is available on over 200 connected devices and growing. Ladies and gentlemen, I believe we are in a strong position as we set about building an integrated audio business that not only generates strong returns from our core radio but is also embracing new digital audio opportunities. The integration of broadcast radio, podcasting and live streaming is not only a natural progression, but also a strategic move for our radio business. By embracing these platforms and recognizing the synergies between them, we position ourselves at the forefront of the evolving digital audio market. We can cater to the changing preferences of our listeners, forge new partnerships and create innovative revenue streams. This integration allows us to navigate the future with confidence and as we continue to provide compelling and engaging audio content to our audiences across multiple platforms. We call it the ARN Audiosphere, where this convergence creates synergies across content creation, distribution and importantly, our sales efforts. By combining their sales skills and knowledge, we are building a sales team that can leverage the strength of each platform capable of delivering comprehensive solutions, maximizing efficiencies and forging strong client relationships. Our goal is to achieve digital audio profitability by the end of 2024, and I'm very confident we are well and truly on our way to doing that. We are committed to a disciplined approach that prioritizes profitability, and our strategy involves carefully assessing the ROI of each initiative and optimizing cost structures. This confidence stems from the data that shows audience expansion in radio, podcast and live streaming has doubled the potential advertising market size for ARN in just 2 years. In 2020, ARN was a metropolitan-based radio business. Today, thanks to our regional acquisition and our investments in digital audio, we are connecting audiences and brands in a market that is worth $1.4 billion. The future of digital audio holds immense potential for growth, innovation and cultural impact. Our company is well placed to shape the audio landscape in Australia. That is why you are voting today to change the name from HT&E to ARN Media. Since selling Adshel for $570 million in 2018, we have set about delivering a market-leading radio business and building a digitally centered audio and entertainment business. In that time, we extended key talent contracts and our partnership with iHeartMedia. We launched the leading podcast network. In 2021, we settled a long-running tax dispute and acquired 46 stations from Grant Broadcasters. Last year, we divested Soprano, providing further balance sheet strength. Today, I outlined for you our vision to embrace the world of audio and audio entertainment and leverage advancements of technology to drive shareholder value. And I believe this name change reflects the ambitions we have, building the most successful audio entertainment business in Australia. Thank you.

Thank you, and great work, Ciaran, and the management team. We have a fantastic company. So great presentation. So now we'll move on to the formal part of the meeting. The arrangements for voting and asking questions online were in the online guide submitted with the ASX announcement of the AGM and also on our Investor Relations web page. We expect you are all familiar with the process of online voting, but I will summarize again for now. To register to vote, click on Get a Voting card. Enter your shareholder or proxy number and click Submit Details and Vote. Your voting card will appear with the resolutions for the vote. Make your vote and then click cast a vote or cast partial vote. If you wish to change your vote while voting is still open, click the Edit Card button. At the end of the AGM, a red bar will appear counting down the remaining voting time. Please make any changes to your votes and submit before voting closes. To ask a question, you must first be registered to vote as just described. Clicking on the ASX Ask a Question tab brings up the click down box to select the relevant resolution and an area to type your question, then click the Submit Question button. A View Questions box will also appear, and you can see the questions you've asked. Questions could be submitted now before the AGM and up to 5 minutes after the meeting closes. If your questions have been answered and you would like to exercise your right to reply, you can also do so by submitting another question. Please keep your questions relevant to the items of the business at hand. I also note that a recording of the AGM will be provided on HT&E's Investor Relations page. The results of the meeting will also be published on the ASX later today. I will now move to matters set out in the Notice of Meeting. But just before we start, we have some general questions or at least one now. So Ciaran, perhaps you read the question out on the screen, and if I could ask you to answer it, too.

Yes, sure. Okay.

Sorry.

Thanks, Hamish. The question is, what was the company's involvement in Kyle Sandilands' recent extravagant wedding? Did any of the directors or KMP attend? And where any company funds used? Was the Chairman concerned to see who was in the wedding party, which led to a strong public criticism from the likes of News Corp's Andrew Bolt? First of all, no directors or KMP attended the wedding. No company funds were used. The content that was generated from Kyle's wedding was certainly used on air to drive audiences. And I believe the success of the type of content that Kyle and Jackie O do is shown in the fact that they have been the #1 breakfast show for 34 consecutive surveys. They have the highest audiences in their history. And survey 1 of this year, they became the #1 overall breakfast show in Sydney, overtaking Ben Fordham. So content, yes, was used from the wedding, but it's used to generate audiences, which ultimately drives listeners, which ultimately drives advertising, which ultimately benefits shareholders. And the last bit?

And just the final bit. Even though it was a very public wedding, it was a private matter. I'm not going to comment on who Kyle would like to invite the wedding. So I think enough said in that regard because it was meant to be a private affair even though it was very well-publicized. So it's up to him to choose with his wife who attends the wedding. That was a question from [ state of mind ], too, just for the record, too. The next question will come in the main body of the meeting, so we'll just address that one in due course.

So to ask -- as I've said, we now move on to item 1 from the Notice of Meeting, and it's the ARN financial statements. I table before the meeting the financial report, the director's report and independent auditor's report for the year-end 31st of December 2022 for consideration. And I invite any questions or comments that you may have on those reports or on any company management. As mentioned, the auditor of the company, Louise King, is in attendance and can answer any questions that you may have about the conduct of the audience, the preparation and the content of the independent auditor's report, the accounting policies adopted by the company and the independence of the auditor. Are there any questions or comments? Okay. As item 2 relates to the reelection of myself, I will now hand over to our RemCo Chair, Paul Connolly.

Thank you, Hamish, and good morning, everybody. Item 2 is for the reelection of Hamish McLennan. We ask shareholders to consider and, if thought fit, pass the following as an ordinary resolution, that Hamish McLennan, who retires as a director by rotation under the constitution and the ASX listing rules and being eligible for reelection, be reelected as a director of the company. Hamish has acted as the Director and Chairman of HT&E since October 2018 and was last reelected in May 2021. His experience is described in the Notice of Meeting. The Board supports his reelection, and I now invite Hamish to say a few words about his experience and skills he brings to the Board.

Hopefully, I could do that from here. Yes, that's good. So look, I've spent my entire life working in the marketing media and, I guess, sports fields, along with technology. So I think I've got diversified experience, which I can apply to HT&E. I'm particularly proud of what the Board and management have achieved at HT&E. And as you saw before, we've got a market-leading position and a very, very strong balance sheet. And I think that collective experience has been brought to bear on HT&E. Also, just from a personal perspective, I love working, I love this business. I haven't missed a committee meeting and/or a Board meeting since I've started at the company. And I think that is proof positive that I'm absolutely committed to the company, and I can manage all of my Board roles adequately.

Thanks, Hamish. There is a question from Stephen Mayne regarding the reelection of Hamish McLennan. Hamish McLennan is arguably Australia's busiest professional director. How can you chair Rugby Australia, HT&E, REA Group and Magellan Financial Group at the same time? Will he commit to reducing his workload? And could he explain how he currently splits his time?

So look, I think I partially sort of answered that question. I like working. I still don't work as hard as I did when I was a full-time executive. I manage all of those Board roles, I think, very adequately and still have time to spare, and not one of those companies has suffered through any time constraints. So there are ebbs and flows in terms of how those -- all those Boards sort of operate, certainly around reporting lines, but it's very easily managed from my perspective. And my commitment to all shareholders across all of the companies that I work for is that I wouldn't do these roles if I couldn't dedicate the adequate time towards them.

And could I add from a personal point of view and confirm the availability for Hamish, not only in a formal setting, from Boards and so on, but his accessibility is second to none from both a management point of view and also from a Board point of view. There's a further question from Stephen Mayne regarding the reelection of Hamish. Could Hamish explain how he represents News Corp on the REA Board but is somehow classified as independent of News Corp, our second biggest shareholder holder on our Board? Given that Lachlan Murdoch is one of our biggest radio competitors, isn't it the time we appointed a Chairman who is completely independent of the Murdochs? Could Hamish the next most senior director both comment on this?

So I'm sure this question has come up in the past. I'm a long-term Chairman of REA Group, and I think that I've treated all shareholders equally and fairly. And if you look at the long-term success of that company, that, in itself, is one of the great success stories over the last 20 years. As Stephen would know, HT&E does not have a News Corp representative on the HT&E Board. They don't get any preferential treatment whatsoever. They don't get any information. I don't talk to News Corp about HT&E's affairs whatsoever, and there is complete separation between what HT&E does and our competitors.

And can I also confirm from a Board point of view that the Board has considered that question independently and has confirmed and is happy that Hamish is an independent director and Chairman. With no further questions in relation to this resolution, we will move to voting on this resolution. I advise that proxies received on resolution are shown on the screen. Please make your vote online for resolution 2. [Voting]

Thank you, and I now hand back to Hamish.

Thank you, Paul. Thanks. We will now move on to the adoption of the remuneration report, which can be found on Pages 46 to 61 at the annual report. Item 3 is to consider and, if thought fit, pass the following as an ordinary resolution, that the company's remuneration report for the year ended 31 December 2022 be adopted. I note that this resolution is advisory only and does not bind the directors of -- or the company. I now invite questions or comments on this resolution. So we have another question from Stephen. Could the CEO summarize his past LTI grants as to whether they have vested or lapsed? Also, has he ever sold in the ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcement. It's complicated over many years, and the CEO could factually summarize the situation in 60 seconds. I think you might be able to actually do it sooner than that, Ciaran. So...