Aurizon Holdings Limited (AZJ) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. My name is Tim Poole, and I'm your company's Chairman. I'd like to introduce Lowana Riddiford, an Aurizon employee, who will do the acknowledgment to country.

[Foreign Language] I am Lowana Riddiford. I am Wiradjuri, which is located in New South Wales. Firstly, on behalf of Aurizon, I acknowledge the Jagera and Turrbal peoples, traditional owners of the land we meet on today. I pay my respects to the elders, both past and present. I would also like to extend our respects to other people, Aboriginal and Torres Strait Islander people that may be present today. My tribal totem is [ Gouga ]. It's black and yellow striped goanna. My family totem is [ Genoana ], emu, taken from my grandmother. My aboriginal name is [ Nurowini ], meaning young emu. That name was given to me by my father. In my hand and pictured, I wear my [ wiling ], my totem stone which has come from the gut of an emu found in my grandmother's birthplace. Most importantly, I'm a mother of 5 children and also helping to raise my late brother's sons. Aboriginal communities have particularly strong family values, and raising a child is everybody's responsibility, including their care, discipline and education. Aboriginal families rely on and nurture strong family ties as a means of passing on their cultural beliefs from one generation to the next. Traditional family structures remain important in our communities today. One of the strongest cultural stories from our Wiradjuri Elders is that of the emu egg. If an emu egg is cracked from the outside, our life is lost. If that emu egg is allowed to crack from the inside, life begins. Aurizon, I believe you gave it -- I believe you -- as a company, you gave me that opportunity to crack from the inside. You believed in me, you supported me and allowed me to grow and develop as who I am. I'm a proud original woman, an Aurizon employee and a member of the indigenous reference group. I'm [ Nurowini ]. Thank you for that and for allowing me to present the acknowledgment of country today. [Foreign Language] Respect all. Thank you.

Thank you, Lowana. It's a very special welcome, and you did an excellent job. So thank you very much for being with us today. On behalf of Aurizon's Board, I'd like to welcome you to the company's 2020 Annual General Meeting. We are pleased you have taken the time to attend, and thank you for your interest in Aurizon. Today's meeting is being held online via the Lumi platform. This allows shareholders, proxies and guests to attend the meeting virtually. All attendees can view a live webcast of the meeting. In addition, shareholders and proxies can ask questions and also submit votes via the Lumi platform. As it is now after 2 p.m. Brisbane time, and the Company Secretary has confirmed that a quorum is present, I declare the Annual General Meeting open. The Notice of Meeting was sent to all shareholders on the 7th of September 2020, and I will take the Notice of Meeting as read. I'd now like to outline the format of the meeting. My introduction and address will be followed by an address from our Managing Director and CEO, Andrew Harding. We will then turn to the business of the meeting, during which you will have an opportunity to ask questions relating to the business of the meeting and the company. Questions will be answered after each item of business. The company has already received a number of questions from shareholders in advance of the meeting. Questions can also be submitted at any time during the meeting. [Operator Instructions] We have attempted to answer more frequently asked questions received in advance of the meeting in the opening remarks from Andrew and myself. If at the end of the meeting, any shareholder feels that their questions may not have been answered, then a shareholder may send their question to our Investor Relations team at [email protected] after the meeting. 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 shortly open voting for all items of business. The poll will remain open until the close of the meeting. If you are eligible to vote at this meeting, a new polling icon will appear. Selecting this icon 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 a submit or enter button as your vote will be automatically recorded. You can change your vote up until the time I declare voting closed. I now declare voting open on all items of business. The polling icon will soon appear. Please submit your votes during the meeting. I'll now introduce your Board of Directors. Our MD and CEO, Andrew Harding; along with Company Secretary, Dominic Smith; Chief Financial Officer, George Lippiatt; and Non-Executive Director, Sarah Ryan, are all in our Brisbane head office. I also welcome our other Board members: Marcelo Bastos; Russell Caplan; Michael Fraser; Sam Lewis; Lyell Strambi; and Kate Vidgen, who have all joined the meeting via the webcast. As this meeting has been held virtually and is reliant on technology, in the event the technology prevents me from chairing this meeting, the directors have resolved that Andrew Harding will chair the meeting. Members of the company's Executive Committee are also in attendance via the Lumi platform including Chris Vagg, our Head of Investor Relations, who will act as a moderator of shareholder questions. Shareholders should be aware that as the moderator, Chris will identify and not read out repetitive questions or questions that are not relevant to the company or the items of business being considered at the meeting. Chris will also seek to aggregate questions based on their subject matter and, while providing as much context as is appropriate in the circumstances, may summarize lengthy questions to ensure that as many questions are able to be addressed at the meeting as possible. Nadia Carlin and Tim Allman of PricewaterhouseCoopers, the company's external auditor, are in attendance today via the Lumi platform. Either Nadia or Tim will be available to answer questions regarding the conduct of the audit of the company's financial report for the year ended 30 June 2020, and the content and preparation of the audit report. I'll now turn to my meeting address. At each major reporting event for Aurizon, we begin with safety. This year, with the coronavirus epidemic dominating our lives, that safety lens is even sharper. The health and well-being of our employees has remained our highest priority throughout the COVID-19 period. This extends to the communities in which our people live and work and the customers and suppliers they interact with across supply chains. As an essential transport provider, Aurizon has continued operating. Customer demand has generally sustained across the key sectors we serve, including resources, industrials, agriculture and consumables. Our teams have worked with minimal interruption and with no reported COVID-19 cases to date. Additional health and safety protocols are in place in workplaces, and remote and flexible working is now commonplace for many employees. From a people and business perspective, Aurizon is fortunate to be in this position, and we take our obligations to deliver for customers and the nation's supply chains very seriously. Today, your health and safety as shareholders is our primary consideration as we deliver our first virtual AGM. We hope you feel engaged and are able to participate in voting and ask questions if you would like to, as you would have done in our face-to-face meetings. In financial year 2020, Aurizon delivered earnings before interest and tax of $909 million, well within guidance and 10% higher than the 2019 financial year. This was a solid result given the economic uncertainty that unfolded during the second half. It is also a mark of the resilience of our business. The Board would like to acknowledge the outstanding efforts of our employees in continuing to deliver safely and reliably for customers during this challenging time. This includes the pivotal role of management in guiding the company's COVID-19 response under the leadership of Andrew and supported by expert advice from Aurizon's Chief Medical Officer. The EBIT result has again allowed us to deliver on our commitment to return surplus capital to shareholders. The Board declared a final dividend of $0.137 per share. This took total dividends for the 2020 financial year to $0.274 per share, 70% franked. During the year, we also completed a $400 million on-market share buyback which delivers additional value for shareholders. In August, we announced a further $300 million buyback to be completed during the 2021 financial year. Over the past 5 years, we have delivered $3.5 billion in distributions to shareholders, including $1 billion in share buybacks. During the 2020 financial year, we made good progress on our key priorities. In December, we received final approval from the Queensland Competition Authority for the 10-year Access Undertaking, UT5, for the Central Queensland Coal Network. This agreement provides long-term investment certainty for one of Australia's leading export infrastructure assets and a platform for continued performance improvement across the supply chain. We also implemented the new legal and capital structure for the Aurizon Group. This organizes the above and below-rail businesses under the holding company, which has the effect of making available additional funding capacity of approximately $1.2 billion. By progressively adding debt over time, we can optimize the balance sheet and unlock additional value for shareholders. The Board was also pleased to see the strong performance of the Bulk business as it continues with its turnaround plan. In the space of 3 years, Bulk has moved from a loss-making business to a healthy profit, an EBIT of $90 million in the 2020 financial year. It is growing customers, becoming more efficient and reducing costs. At the same time, it has created more than 200 jobs for new employees in regional Australia. I would now like to turn to the environmental, social and governance aspects of our business. The Board is committed to maintaining a high standard of corporate governance to promote responsible management and conduct within Aurizon. This is supported by Aurizon's Values and Code of Conduct. We are committed to safe, lawful and ethical conduct, respect for others and to responsibly consider the community and environment in our decision-making and day-to-day operations. We believe in being open and transparent with shareholders and stakeholders on how we operate the business and how we manage financial and other risks. This was recognized in September 2020 when the Australian Council of Superannuation Investors rated the ESG disclosures by Aurizon as leading for the sixth consecutive year. Last week, we released our annual Sustainability Report, now in its seventh year. The Sustainability Report remains the primary document for reporting on our ESG matters and how we are responding to business risks across our portfolio. This includes regulatory and policy settings that impact the company; our performance on environmental matters and safety; our contribution to communities and regional economies; and the development of our people, including diversity and inclusion initiatives. Our objective is to deliver a productive, sustainable and socially responsible business that, in turn, creates value for our customers, employees, communities and shareholders. I encourage you to visit our website to read our 2020 Sustainability Report. At last year's AGM, I gave Aurizon's commitment to continuously improve performance in business sustainability. Over the past 12 months, extensive work has been undertaken in considering climate-related risks and opportunities that will help us continue to lower carbon emissions across our operations. The result is the release today of Aurizon's first Climate Strategy and Action Plan. It significantly expands on the initiatives we have previously included in our sustainability reporting. We now have a road map through to 2050 on how we will decarbonize Aurizon's operations and contribute more broadly to a low-carbon freight transport sector for Australia. The strategy includes the key commitments of a long-term target of net-zero operational emissions, Scope 1 and Scope 2, by 2050; a $50 million investment over the next decade in a Future Fleet Fund. This will target low-carbon technologies for our train fleet, including new-generation battery and hydrogen-powered locomotives; and using more renewable energy for our electrified rail network and other rail facilities and using carbon offsets where emissions reduction is not possible. As we've said in prior years, Aurizon accepts the scientific consensus on climate change and supports collective efforts to limit global warming to less than 2 degrees, aligned to the 2015 Paris Agreement. Aurizon wants to be part of the global solution, supporting an effective transition to this lower-carbon future. We have already made some good progress, but like other companies, we know more must be done. Over the past decade, Aurizon has achieved a 20% reduction in our carbon intensity by investing in new locomotives, better technology and improving train driving techniques. We aim to reduce that a further 10% by the end of this decade. One of the natural advantages we have is that a large proportion of our locomotive fleet uses electric traction on the Central Queensland Coal Network. Not only are electric locomotives inherently more efficient with fewer emissions, but emissions will also decrease further over the coming decade as more renewable energy sources feed into the electricity grid. Already these locomotives put power back into the grid through regenerative braking in much the same way as hybrid cars recharge their batteries as they travel. This can save 10% in electricity consumption. Ongoing technology development will be a fundamental driver in reducing Aurizon's carbon emissions. Our biggest focus will be on sourcing low-carbon technology for our locomotive fleet, which currently accounts for more than 90% of Aurizon's CO2 emissions. Similar to the motor vehicle and energy industries, the rail freight industry globally is developing low or zero-carbon solutions to power freight trains. This includes battery, hybrid and hydrogen-powered locomotives. We are already collaborating with some of the key players. We would expect to see prototypes trialing on our network by 2025 as technology advances and costs come down further. The work we do in the next 5 years is critical to firming up our pathway to net-zero operational emissions by 2050. This is because locomotives have a working life of 20 to 30 years. The investments we make in renewing our locomotive fleet need to capture benefits for the decades that follow. These decisions will also factor in business benefits for Aurizon in safety, our cost base and operational efficiency. A low-carbon future must go hand-in-hand with business sustainability for Aurizon. A low-carbon future for Aurizon must also continue to deliver for customers and the national economy. Aurizon plays a critical role in domestic and export supply chains for Australia. By continuing to reduce operational emissions while improving supply chain performance, Aurizon is supporting the global competitiveness of our customers. It is no secret that transporting coal for customers is a large part of our business. As part of our 6-monthly strategic planning, we assess the future demand for coal. This scenario-based analysis is captured in our Sustainability Report. Despite short-term fluctuations caused by COVID-19, the fundamental demand drivers of coal demand remain both for thermal and metallurgical coal. About 95% of Australian thermal coal exports are destined for Asia, where there is a relatively young existing coal-fired generation fleet with new capacity coming online. While Aurizon supports a measured global transition to more renewable energy sources, we acknowledge that coal-fired generation will remain an affordable and reliable part of the energy mix in Asia for decades. In terms of metallurgical coal, there is currently no economically viable substitute in the dominant blast furnace steel-making process, which accounted for 1.3 billion tonnes of crude steel production last year. Steel-intensive growth in India is expected to be the largest driver of seaborne demand in coming decades. Aurizon's Climate Strategy will also help us prepare our businesses for emerging and future growth opportunities in the freight and supply chain sector. In addition to commodities needed to build infrastructure, our Bulk business is well positioned for opportunities in growth markets of fertilizers and batteries. Bulk already transports for its customers products such as iron ore, bauxite, alumina, base metals, grain and livestock. In a broader sense, Aurizon will also work to contribute to a low-carbon rail freight transport sector for Australia. This recognizes that rail is currently the safest and lowest-impact mode for land freight transport, delivering approximately 75% fewer greenhouse gas emissions per tonne of freight compared to road. We directly advocate for policy actions to increase the use of rail freight on key national freight corridors. Our aim is to ensure that rail freight remains competitive and part of the solution as the economy transitions to a low-carbon future. A good example of this has been the growth of customer contracts by our Bulk business on the 1,000-kilometer Townsville to Mount Isa rail corridor. Each of our freight trains replace the equivalent of 75 Type 1 and Type 2 road trains, which are the largest heavy vehicles that would ordinarily use the highway. Over the course of the year, this removes the need for thousands of truck journeys on the Flinders and Barkly Highways. I would like to make a few important acknowledgments before closing. In February this year, our highly respected former colleague, John Cooper, passed away. John served on Aurizon's Board for 7 years until May 2019 when he retired due to health reasons. John made a huge contribution during an important period of transformation for Aurizon. In December last year, Sarah Ryan and Lyell Strambi joined our Board as Non-Executive Directors. Sarah and Lyell have brought to us further operational, transformation, technology and transport skills and experience, and we are delighted they have joined the Board. You'll be hearing more from both of them as part of today's agenda when considering the resolution on their appointments. In closing and in the context of the challenging economic environment, I would reinforce the work we have done in recent years to make Aurizon stronger. We have simplified our business model focusing on our core capabilities in bulk haulage and rail infrastructure. We have exited loss-making businesses, turned around underperforming areas, extended key above-rail contracts and secured long-term regulatory certainty for the Central Queensland Coal Network. Aurizon is well positioned from a funding perspective with a strong balance sheet and long-dated contracted revenue streams. As previously indicated, we expect to see some COVID-related impacts during the 2021 financial year. However, I can confirm that we remain on track with our 2021 financial year EBIT guidance of $830 million to $880 million based on the assumptions that were provided at our full year results presentation in August. To our employees located across our operations, thank you again for your efforts each and every day and particularly for your discipline and dedication through this latest very challenging period. Thank you also to our customers for trusting us to haul your commodities safely and efficiently. And finally, to you our shareholders, thank you for your support and interest in our company. I'll now hand over to Andrew for his address.

Thank you, Tim, and good afternoon, ladies and gentlemen. As the Chairman reinforced in his remarks, this has been a very different and challenging year. Our business has proven to be resilient, and employees have met challenges in the operating environment with great focus and professionalism. I am very proud of the Aurizon team and how they have responded during the COVID-19 pandemic. Aurizon's Chief Medical Officer, Dr. Maria Mazaheri, has guided our decision-making in the company based on expert advice from health and government authorities. This has provided the framework for how we run the business for our customers and deliver an essential service for the national economy. Our employees have taken personal responsibility for their health and well-being and looked out for their workmates. This includes mental health, which can be impacted by social isolation and economic hardship. Additional health and hygiene protocols in our operations have been followed with discipline by employees. This has been fundamental to permitting our services and our supply chains to continue through this period. We've also extended support into the community with grants to charities and volunteer groups from our Community Giving Fund. More than 80% of employees work and live in regional communities in Queensland, New South Wales and Western Australia, so it is important we support these communities. One group that benefited was the Reach Foundation in the Illawarra. They now have the funding to deliver a series of workshops aimed at improving the resilience of teenagers and to support their mental health and well-being. In the current climate, where many young people are affected, we are pleased to support projects such as this one. In April, Aurizon donated $250,000 towards the development of a COVID-19 vaccine by the University of Queensland, one of the world's leading research institutions. Aurizon joined a number of donors from the private sector, philanthropists and the Queensland and Federal governments to support work to fast-track this vaccine development. We're thrilled at the progress being made by the university with its clinical trials. Last month, Australian biotech company CSL announced it will supply the Australian government with 51 million doses of the university's vaccine candidate from 2021 if the trials proved successful. Turning now to safety performance. In December 2019, we sadly lost a highly regarded employee, Hans Ah Chee. Hans was a long-serving train driver who died in a work motor vehicle accident in Central Queensland. Workplace Health and Safety Queensland has considered all issues relating to the accident and is not investigating further. Our thoughts remain with Hans' family, friends and colleagues. Notwithstanding this tragic fatality, the measure we use for employee safety, total recordable injury frequency rate, improved by 10% during FY 2020 when compared to FY 2019. The other safety metric we use is Rail Process Safety, which records operational incidents including derailments, signals passed at danger and collisions. In FY 2020, there was a deterioration in RPS by 8% with a total of 4.7 million -- 4.7 incidents per million train kilometers traveled. A significant contributor was low-speed derailments in rail yards. While we are working to eliminate them, yard derailments typically do not have the same high potential for serious injury or fatality as higher-speed mainline derailments. Last year, I reported on extensive work underway to enhance safety performance including safety systems and leadership. We also continue to tap into the operational knowledge and experience of our frontline teams, people who know how to do their job and make safe choices every day. In FY 2021, we've moved to the next phase of this work, updating our safety strategy and building on the improvements over the past year. Key initiatives include implementing an integrated system for safety management activities, including risk management, audit and incident management; and continued rollout of our safety leadership program for our frontline leaders in operational areas. We aim to deliver this program to a further 300 leaders this financial year. The Chairman has provided an overview of our financial results. I will summarize some of the key outcomes during FY 2020 for each of the 3 business units: Bulk, Coal and Network. The Bulk business delivered a strong result in FY 2020, winning a number of new haulage contracts and delivering ongoing cost and efficiency benefits. As Tim mentioned, it is tracking very well on the turnaround plan we put in place 3 years ago. Contract wins during FY 2020 included an 11-year contract extension with South32 for its Cannington operations on the Mount Isa corridor; a 3-year contract with Mineral Resources for iron ore haulage and maintenance services in Western Australia; and a 4-year contract with Rio Tinto for the operation and maintenance of its ballast cleaning machine in the Pilbara, Western Australia. During the year, Aurizon Bulk completed the acquisition of Townsville Bulk Storage and Handling, which operates bulk transport, handling and stevedoring services in North Queensland. The acquisition allows us to extend supply chain services beyond our core rail capability on the Mount Isa line corridor, connecting the Port of Townsville to the commodity-rich North West Minerals Province. The Coal business delivered 214 million tonnes of coal for customers during FY 2020, which is broadly in line with FY 2019. Contract wins included a contract extension with Peabody, where we transport all existing volumes and new business in Queensland and New South Wales; hauling additional volumes and extending the contract length for Coronado for the Curragh mine in Queensland; and a contract with BlueScope, which commenced in April 2020 for haulage in the Illawarra region in New South Wales. With the start of the BlueScope contract, Aurizon's Coal business now operates in all coal systems across Australia, and it is the only rail operator to do so. We are continuing to invest in the Coal business to deliver ongoing safety and productivity benefits. Two recent examples are: in May, we made the decision to proceed with the TrainGuard project in key corridors on the Central Queensland Coal Network. High-tech equipment is installed onboard locomotives, which continuously supervises train speed and signals through associated trackside equipment. TrainGuard will support improved safety outcomes for our people and continued delivery performance for our customers. In recent weeks, we've commissioned our new wagon maintenance facility at Jilalan in Queensland. Over the next decade, the facility will overhaul approximately 5,000 coal wagons operating in Central Queensland. The new facility incorporates smart technology and work practices including remote-controlled movement of wagons, automated grit blasting facilities and special tools and equipment that enhance employee safety. These are just 2 examples of the continuous improvement opportunities that are available right across our business. Targeted investment that delivers tangible results for the business, improving safety, operational performance and customer service. While volumes carried across the Central Queensland Coal Network were 2% lower in FY 2020 at 229 million tonnes, the EBIT result for the Network business was 17% higher. This was primarily due to the finalization of the UT5 Access Undertaking during the year. As indicated by the Chairman, the undertaking is the platform for continued productivity and supply chain performance improvements for the Queensland export coal industry. Not only does it provide regulatory and investment certainty through to 2027, it also incentivizes both Aurizon and coal industry customers to continually improve performance and to lower cost. This helps support the continued competitiveness of Australian coal in international markets. As an update for this financial year on business unit performance, today, we've released our above-rail tonnage report for the first quarter ending 30 September 2020. There was an overall 5% reduction in tonnages hauled for our customers by our Coal business that operates in Queensland and New South Wales compared to the same period in FY 2020. This is consistent with our commentary in August that we expected a softer first half in coal railings due to lower steel production related to COVID-19, in addition to China curtailing aggregate coal import volume to maintain a similar annual result to the prior calendar year. Railings are expected to improve in the second half as the steel capacity comes back online in key export markets. Tonnages for our bulk businesses are up 13% for the quarter compared to fiscal year 2020 primarily due to the commencement of railings for Mineral Resources in Western Australia from January 2020 and stable volumes across the remainder of the Bulk portfolio. Tim has covered the key aspects of our Climate Strategy and Action Plan released today. It is an important document for Aurizon, a road map for the steps we will take to decarbonize our operations over the next 3 decades. The Aurizon team does not have all the answers right now. But with the work invested in this strategy over the past 12 months, we have the framework to guide our initiatives and actions. Our intent is very clear: Aurizon is committed to decarbonizing our operations and the freight transport supply chains we operate with customers. We will leverage a combination of rapidly advancing technology. We will learn to use less power and use more renewable energy. And we will explore opportunities to offset our carbon emissions where we cannot eliminate emissions. What is also very clear is the business that Aurizon is in. Our company's purpose statement is simple and unambiguous: Growing regional Australia by delivering bulk commodities to the world. We are committed to delivering for our customers, connecting miners, agriculture and industry to their markets. The long-term transformation of Aurizon will deliver more efficient supply chains for customers and help maintain Australia's global competitiveness. We also know that Aurizon's role in the 3 regions brings broader economic benefits to the community, jobs, income and local spend. This is where more than 80% of employees live and work. And this broader benefit has certainly prevailed during COVID-19 as we have continued operations across our national footprint. This is something companies like Aurizon should deliver, a sustainable future that creates value for our employees, our customers, our communities and our shareholders. During FY 2020, we had some changes to our senior leadership team. I acknowledge the contribution of former Group Executive Network, Michael Riches, who left Aurizon in December 2019. Michael played a leading part in developing the UT5 Access Agreement. Recognizing the strong capability of our existing leadership team, we appointed the Chief Financial Officer and Group Executive Strategy, Pam Bains, to the Network role. George Lippiatt, the former Head of Strategy and Corporate Development, was subsequently appointed to the role of Chief Financial Officer and Group Executive Strategy. I also acknowledge the retirement of our Group Executive Corporate, Tina Thomas, after 3.5 years with Aurizon. I would like to thank Tina for driving a number of important reforms to our business including safety, leadership and our company's response to climate change. Today's AGM is Tina's last official commitment for Aurizon, and I wish her well. I extend special thanks to our employees across the company for their efforts in a challenging year. Our people are central to Aurizon's success and the connection we have with the communities in which we operate. Thank you to our customers and to you, our shareholders, for your continuing support. Thank you. I understand some people may have had difficulty hearing the commencement of my speech. A reminder that a full copy of my speech is available on the Aurizon network.

Thanks, Andrew. Much appreciated. Well done. We now come to the formal business of the meeting. There are several procedural matters which I'd like to draw to your attention. As this is a shareholders' meeting, only shareholders, their attorneys, proxies and authorized representatives are entitled to ask questions or vote at this meeting. Each item will be introduced in turn, and shareholder questions on each item of the business will be answered after that item of business. As indicated in the Notice of Meeting and in order to ensure that the views of all shareholders are taken into account, all items of business before the meeting where a vote is required will be determined by way of a poll. All eligible shareholders and proxy holders have had the opportunity to vote in advance of the meeting and are also able to vote at the meeting today via the Lumi platform. Proxy holders should note that all directed votes received thus far have been accumulated and recorded. Proxy holders with open votes are asked to record a vote in favor or against each item of business. Details of the proxies received by the company from shareholders will be displayed on the platform after the introduction of each item of business. Subject to the voting exclusions detailed in the Notice of Meeting for items 3, 4 and 5 and and the shareholder having marked the appropriate box, any open proxies will be voted in favor of each resolution. As mentioned earlier, all items of business before the meeting where a vote is required will be determined by way of poll. In respect to conducting the poll, I appoint Lewis Brimelow of Computershare as the returning officer. Okay. So moving through to item 1. The first item of business listed in the Notice of Meeting is to receive and consider the financial statements, Directors' Report and independent Auditor's Report of the company and its controlled entities for the financial year ended 30 June 2020. In accordance with the Corporations Act, there is no vote on this item. This item of business provides shareholders with the opportunity to ask questions about the reports and management of the company. [Operator Instructions] I will now ask the moderator if there are any questions for me to answer on this item of business. Chris?

Thank you, Chairman. We received a number of questions in advance of the meeting, and I'll deal with those first. First question is, firstly, I congratulate your Board and management for achieving an improved result during challenging times. With the recent encouraging results from the bulk haulage segment, is this diversification away from coal haulage planning to continue or even accelerate? And if so, how?

Yes. So look, we would certainly like to continue to grow our Bulk business. We see opportunities to do more work for our existing customers. And we are keen to -- clearly keen to introduce new customers to our Bulk business. With the growth in sectors such as those involved in batteries, solar, electric cars, wind turbines and even telecommunications, we see very strong growth ahead in export demand for the minerals that support these sectors. And we would certainly like to be part of that growth. Also, as Andrew discussed in his presentation, we acquired a bulk storage and handling business in the Port of Townsville during the year which adds to the services that we can offer customers. It's only a small acquisition, but it is complementary to our existing operations and does provide, as I say, more services we can offer to our customers. And we certainly like to carefully add other assets like these to our portfolio, which will also assist growing our Bulk business in the future. Back to you, Chris.

The next question received in advance, is Aurizon's FY '20 dividend yields -- sorry, if Aurizon's FY '20 dividend yield should be quite attractive to shareholders, especially retirees, is there a chance that Aurizon would plan to maintain this yield level if conditions allow and become known as a dividend stock? How would you then continue then to create growth investment for the company?

Yes. So dealing with the first part of that question first, I suppose you need to look at our track record, and for the past 5 years, we have paid out 100% of our underlying net profit after tax as dividends. And absent something significantly happening in our business, I see no reason why that won't continue in the future. Even taking into account the fact that our guidance for FY '21 is a little lower than last year, which will impact on the dividend amount, the likely dividend levels that we will be paying in FY '21 still represents a very attractive dividend yield based on our current share price. So yes, we do see our stock being a very attractive, high-yielding stock in the current environment. Because of that, we are keen to increase the level of retail ownership in our company. And we'll be doing some more work on that in the coming year. In relation to the second part of that question, as I said in my address a little earlier, we completed our corporate restructure last year, and that has released significant additional debt capacity for our company. So we have available capital to grow if we can identify valuable opportunities. And we also have the capacity to keep paying out dividends at a higher rate. So we see both opportunities. The challenge for us is clearly trying to find the valuable opportunities here in Australia for us to invest in, but we'll continue to look for those. Back to you, Chris.

The next question is, for Aurizon, what was the worst negative impact of COVID-19? And what management lessons did you learn?

Yes. So in relation to the first part of that question in terms of the most detrimental impact from COVID for Aurizon, look, it's probably something that didn't occur in 2020 financial year, it's probably actually something that's occurring in the first part of this 2021 financial year, which is the slight softness in coal demand that we are currently experiencing. We -- as part of our presentation to the market back in August when we presented our full year results, we saw this coming. We flagged that we saw some weakness in the first half. And as we reported our quarterly volume numbers this morning, that is playing out as we expected. So it's probably -- it probably is the impact of COVID on some of the end markets. Particularly, interestingly, some of the countries involved in importing metallurgical coal for steel-making purposes, that's probably where some of the pockets of softness have been seen. And that's something that we're currently experiencing and something that we -- as I say, we expected back in August when we produced our results. In terms of the second part of that question, in terms of management lessons arising out of COVID, Andrew, I might hand over to you. You chaired our crisis management team through this process, so I'm going to hand over to you to make some comments on that.

Yes. Thanks, Tim. And we still are running our crisis management team, and that probably speaks to what my answer is going to be about the major learning. For the team, for myself, what I think the major point of learning is that this wasn't a single event. As we didn't know what to expect as the first wave started to impact Australia, there was a sense that it would be over at some point, not in the future, and we have really had to make all our changes to adapt to that first wave. But what we've seen obviously with Victoria, you've seen -- not that we operate in Victoria, but you've seen the second wave here. You've seen lots of outbreaks around New South Wales and indeed Queensland and a little bit in other parts of Australia. And what that says is that you can't stop implementing and reinforcing the changes that we made in the lead up to COVID-19 impact in the country. So all the hygiene provisions that we put in place are encouraging employees to stick to the various practices, all the various changes we've made to rosters to accommodate the many different issues and those sort of things, that's the thing that we've learned. This simply isn't a single event, and it simply doesn't go away. And not only do we have to keep working hard at maintaining those initiatives, we're likely going to be maintaining those initiatives until the vaccine, if it ever does actually turn up -- turns up and normalizes society a little bit more, that's the biggest learning, Tim.

Thanks, Andrew. Back to you, Chris.

The final question received in advance is, will the recently announced energy policy provide any new opportunities in the future for Aurizon and what might that be?

Yes, it's an interesting question, and it's probably a little too early to tell, but it is something we do acknowledge and certainly appreciate is the focus on technology and skills in the Low Emissions Technology Statement that the Federal government released recently. Collaboration and investment in areas such as this across government and industry, we think, will be absolutely key to unlocking a low-carbon future in Australia and globally. And as you'll see from our Climate Strategy and Action Plan that we released today and I spoke about a little earlier, we absolutely see technology as a great enabler, which is why we are investing $50 million into our Future Fleet Fund with a focus on low-carbon technology such as hydrogen, such as batteries and possibly other areas as they emerge for our locomotive fleet, which accounts for more than 90% of our CO2 emissions. So we see a lot of opportunity in the space. It's something we're doing a lot of work on. And we are hopeful that there will be material benefits that come out of this as we approach some pretty material investment decisions over the next decade in terms of how our future fleet shapes up. The final comment I'd make is just a reiteration of something I made in my earlier remarks. Our rail is already the safest and lowest-impact mode of land freight transport, and we'll continue to work at all levels of government to ensure this is recognized both from a policy and an investment perspective. Back to you, Chris.

Well, that ends the questions in advance from the Australian Shareholders' Association, so we'll move to questions online. The first one is, given the recent creation of the Bowen Rail Company, a subsidiary of Adani Ports, can the Board clarify 2 things: first, the name or names of the company or companies seeking access to Aurizon's rail network in order to facilitate the transfer of coal from the Galilee to Abbot Point; and second, if the negotiations are with Bowen Rail Company, has the process begun again? And if so, what is the expected time frame for these negotiations to be concluded?

Yes. So in relation to access request, as I've said at past AGMs and as a company we've said publicly, we do have a legal requirement to consider all requests for access to the Central Queensland Coal Network. But what we've also said is we have an absolute legal obligation to treat all access requests confidentially. So unfortunately, we're not able to make any comment in relation to any specific access application. We do have, as I say, a legal requirement to treat all access requests confidentially. So I think that question is much better directed to the company in question. Back to you, Chris.

The next question states 3 of our company's major shareholders, UniSuper, The Children's Fund and Perpetual, sold their holdings due to the Board's refusal to commit to ruling out servicing Adani's Carmichael mine. Now that Adani has set up their own coal haulage company, can the Board commit to not providing any services for Adani or the Bowen Rail Company outside of what it is legally required to do?

So there's clearly 2 aspects to that question. Well, the first part is more a comment. And I have to say I don't believe that the reasons the 3 shareholders named left our register are due to the reasons that we just provided. Shareholders come and go for a whole range of reasons. And I just -- I don't believe at all that they were solely related to Adani or any of our customers or potential customers. In relation to Adani and the prospect of Aurizon being involved in rail haulage services, my understanding is precisely what's behind the question that's just been made, which is our understanding is that Adani is on record of saying they are setting up their own haulage operation or they have established their own haulage operation and they're acquiring their own rolling stock. So I think in terms of Aurizon, I think this is an absolutely hypothetical matter that we don't need to entertain given what Adani are on record of saying. So I don't think we need to say any more about that. Back to you, Chris.

The next question states the Sustainability Report notes that access to funding and insurance is a significant risk facing the company. To manage this risk, Aurizon will continue to advocate for the use of Australian thermal and metallurgical coal, therefore, delaying a transition to low and zero-carbon alternative energy sources. How will this advocacy be conducted? And how much will it cost the company? Rather than advocating to delay the low-carbon transition, would it not be better for Aurizon to instead recalibrate its strategy to take advantage of that transition?

Yes. So I think it's overstating our role to say that we can influence the demand in end markets. I think the end markets will be the end markets. So as I said in my comments before, yes, India, we think, will have -- and other Asian countries will have significant demand for metallurgical coal for their steelmaking processes. There are many Asian countries that will require thermal coal for powering electricity generation as those countries urbanize over the next 20 or 30 years. So I think it's vastly overstating our ability to influence whether or not there's demand to both types of coal in those end markets. In relation to our own strategy and how we might recalibrate, this is something -- as we say in our Sustainability Report, as we said in our -- both in my presentation and Andrew's presentation, this is something we look at continually. We assess the outlook for these commodities. And not only just the 2 types of coal commodities, we assess the outlook for a full range of commodities. As Andrew said, our purpose is to deliver bulk commodities to the world. And so we're looking at the full gamut of minerals and commodities and what we can do more of as end markets demand more minerals across the spectrum. And that's what we'll continue to do and continue to look for opportunities to grow each of those hauls that we currently have and also further diversify the hauls that we have. Back to you, Chris.

The next question is, what works and upgrades will be needed on the Goonyella line to allow up to 10 million tonnes per year of additional coal from the Carmichael mine as per Adani's initial plans? What is the cost of those upgrades and who will pay for them?

Yes. So at this stage, we have sufficient capacity on the Central Queensland Coal Network, so at this stage, there's no additional capacity required on our system. That's obviously something we assess and we continually assess. And indeed, as part of the UT5 process, we're going through an independent review of the capacity of the system, and that's something that we're actively working on at the moment with our customer base. But at this stage, there's no -- there's sufficient capacity and no extra investment required. Back to you, Chris.

Next question is Aurizon's 2020 Sustainability Report models a scenario in which Australian coal exports decline by over 60% by 2040, yet Aurizon's full year results presentation states that Aurizon expects coal exports to grow by 1% to 2% per annum over the next decade. What global warming outcome is that growth projection consistent with? What would be the financial impact on the company if the rapidly declining coal export scenario were to eventuate rather than the growth scenario our current strategy is aligned with?

Yes. So we look at -- as we've said in our reporting, we look at a range of scenarios, and those scenarios change each time we look at them depending on a lot of external factors. And indeed, the IEA came out overnight, and indeed, they even came out with a new set of forecast that we'll look at in the fullness of time. But -- so there's a range of forecasts and scenarios that we look at. The scenario referred to that shows a significant fall-away in coal exports out of Australia is just one of many scenarios we look at and we think about and we plan for and we consider in our long-term planning. But our base case remains that over the long term, we see -- because of the reasons both Andrew and I have talked about today and the reasons we outlined in our Sustainability Report, we continue to see, based on a rational economic view of the world, that 1% to 2% per annum growth for many years to come is still the base case that we're working towards. Back to you, Chris.

The next question is Adani has no previous experience in hauling coal in Australia. Since Adani and the Bowen Rail Company will be accessing our company's rail network, has Adani demonstrated that its rolling stock will be suitable and safe to operate on Aurizon's network? If not, what will Aurizon do to ensure Adani's rolling stock satisfies the suitability and safety requirements on our rail network?

Yes. Again, I'm not going to comment specifically on one operator because I don't think it's appropriate to do so. But I think it's important for stakeholders to understand that we have to go through a very rigorous process in terms of granting access to the Central Queensland Coal Network. There's a range of criteria that needs to be established. That takes a long period of time because it is a rigorous process. And the types of points that are made, as part of that question, are absolutely taken into account as part of the vast number of things that need to be taken into account before any operator is given access to our network.

Yes, Tim, it might help if I just added that there is a range of legislative and safety requirements that must be met before any access to the Aurizon network is granted to any prospective above-rail operator.

Thanks, Andrew. Back to you, Chris.

Next question is the Climate Strategy announced this morning focused entirely on Aurizon's operational emissions but offered nothing to address the threat facing this company's major revenue source of coal. What is Aurizon's strategic response to the declines in coal export volumes expected under a scenario in which global warming is limited to 1.5 degrees Celsius? And why is this not included in our Climate Strategy and Action Plan?

So I think there are 2 separate things. In relation to our Climate Strategy and Action Plan, that's focusing on our operations. And as a key service provider and a key freight operator in Australia, it's focused on the ways in which Aurizon as a company and an operator is going to decarbonize its operations. I think the question of whether -- and what the demand for coal is into the future is a separate question, and I think I've addressed that as part of my earlier comments. But just to reiterate, we see -- we clearly see that thermal coal will become a lower part of the global energy mix going forward. That process has started. We're seeing a decline as a percentage of global energy production. But having said that, there are still many thermal coal-fired power generation plants in Asia that are still very young in their lives. They'll still be required to be fueled by thermal coal for many decades to come as those countries in Asia urbanize their populations. So we see particularly, again, for Australian thermal coal, which is low cost and high quality, we see Australian thermal coal being turned off as part of that energy transition quite late in the process, and so we see a long-term future for Australian thermal coal. And in relation to metallurgical coal, again, as we've articulated in our Sustainability Report, metallurgical coal is still going to be the dominant source for steelmaking for many decades to come. Again, Australian metallurgical coal is very well placed both in terms of where it's located, cost of transportation, the cost of extraction and the cost of mining. And so again, we see Australia's metallurgical coal having a long-term future. Now having said all that, we absolutely understand the risks around that. We absolutely talk about the things we need to do to plan for that. But again, these are not short-term fixes, these are long-term fixes, and these are things that we're working on today. Back to you, Chris.

Next question is, how long do you estimate China curtailing Australian coal imports to continue? And is this factored into your guidance?

Yes, it is. So China has, for many years, come in and out of the markets. And indeed, in the first part of this calendar year, the first half of this calendar year, China was importing very significant volumes of coal out of Australia. We understand and we expected that, that would be curtailed in the second half because they would probably want to keep their levels of import and export markets to a similar level to the 2019 calendar year. So when we made our statement in August about some softness in the second half or the first half of this new financial year or the second half of this calendar year, yes, that was certainly in our minds that we expected the very strong activity from China in the first half probably not to be repeated in the second half of the calendar year. So what's going on with China importing of coal at the moment is, to us, as I say, it's probably just to ensure that it keeps their levels of imports to a similar number to 2019. And so there's nothing that's a surprise for us and certainly factored into the forecast that we've made to the market. Back to you, Chris.

Next question is, if the sale of the Acacia Ridge Intermodal Terminal is not approved in the ACCC appeal, will it be retained? Are there any development opportunities for it?

Yes. So if we're not able to complete the sale, which having been through now a single-judge process and a 3-judge appeals process, you'd have to think it was still on a highly likely path to complete. But in the unusual event that it's not allowed to complete, it is a profitable asset. Yes, it's modestly profitable, but it is a profitable asset for us, so it's not a drag on our earnings. And we would look to see what are other options. Whilst this process has been going on and has been going on for some time, we have continued to assess opportunities. And there are potentially development opportunities of that asset. But one of the things that we decided some time ago is we're better to concentrate on our core. And our core is above-rail haulage and rail infrastructure. And that asset didn't fit within either of those, and so we decided to exit it. That would still be our preferred option, but the second prize, which is keeping a profitable asset and looking at other other development opportunities, is something that we would certainly consider if we were blocked in the high court. Back to you, Chris.

Thank you, Chairman. There are no more questions at this time.

Okay. As that concludes all the questions that have now been put, I declare that the reports have been received and considered at the meeting, and we will now move on to the next item of business. So item 2 relates to the election of directors. Sarah Ryan and Lyell Strambi were each appointed as Non-Executive Directors of the company on the 1st of December 2019 and, in accordance with the company's constitution, seek election at this year's meeting. Each election is an ordinary resolution and will be voted on separately. As a matter of process, I will ask each director standing for election to introduce themselves to the meeting. Item 2(a) relates to the election of Sarah Ryan. Sarah was appointed as a non-executive director of the company on the 1st of December 2019 and, in accordance with the company's constitution, seeks election as a director of the company. Details of Sarah's background, qualifications and experience are set out in the Notice of Meeting. I'll now ask Sarah to introduce herself and to say a few words. Sarah?

Thank you, Chairman. I was delighted when I was invited to join the Board of Aurizon as it's a company where I believe I can make a real contribution to as a non-executive director. My background is the oil and gas industry with about 30 years' experience worldwide, mostly around operations, technology and engineering and contracting. I have also spent 10 years in investment management and private equity focusing on global energy and natural resources. Many of the issues I've had to deal with over that time are very relevant to Aurizon's business today, for example, high-risk and remote operations, the emphasis on safety, the opportunities and challenges of new technology and the nature of the business as a key contractor to large resource companies. I'm currently a non-executive director on the Board of 2 other ASX-listed companies, being Woodside Petroleum and Viva Energy, where I am a member of their Audit and Risk and Safety, Health and Environment Board Committees. I believe my background and experience leave me well placed to contribute to the company's future, and I'll be delighted to be elected as a director by shareholders today. Thank you.

Thank you, Sarah. The Board, with Sarah abstaining, recommends that shareholders vote in favor of the election of Sarah Ryan as a director of the company. The resolution before the meeting is that Sarah Ryan, who was appointed as an addition to the existing directors of the company on the 1st of December 2019 and being eligible, be elected as a director of the company. I'll now ask the moderator if there are any questions for me on this item of business. Chris?

At this stage, Chairman, there are no questions submitted.

We might just wait a few more seconds given that there is a time delay just to see whether any comes through. Any questions?

Nothing submitted, Chairman.

Okay. I'll now put the resolution to the meeting. Displayed on the platform are details of the proxies received in relation to the election of Sarah Ryan. As this item will be determined by poll, if you have not already done so, please select the voting icon. Once again, selecting this icon 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 a submit or enter button as your vote will automatically be recorded for item 2(a). [Voting]

Let's move on. The next item of business relates to the election of Lyell Strambi. Lyell was appointed as a non-executive director of the company on the 1st of December 2019 and, in accordance with the company's constitution, seeks election as a director of the company. Once again, details of Lyell's background, qualifications and experience are set out in the Notice of Meeting. I'll now ask Lyell to introduce himself and to say a few words.

Thank you, Tim, and a warm hello to all of our shareholders with us today. Certainly being invited to an organization with a caliber of Aurizon has enormous appeal for any executive, and I'm no different to that. This is a well-run organization with a Board that possesses tremendous diversity, and yet it still has potential for growth and improvement. Notwithstanding, it's an organization where I believe I can make a solid contribution by bringing to bear different yet relevant experiences. My background is in transport, and I've been an aviation executive for over 40 years, with a career that spanned airlines, freight companies, both road and air, and now airports. I believe I can bring relatable insights to Aurizon. Entering the workplace with finance training, I moved through commercial and operational roles. As the former airline operators license holder for Qantas and Virgin Atlantic in the U.K., I bring a deep knowledge of safety management. Of course, airlines are ultra-competitive, fine-margin businesses, and that instills strong cost and transformation disciplines. I've also led large customer-facing workforces through industrial agreement, modernization and, most recently, a very large-scale, capital-intensive infrastructure business with long investment horizons just like Aurizon. While my previous Board experience has been predominantly in privately held organizations that covered a diverse range of enterprises from Star Track Express, Royal Flying Doctors and Visit Victoria, these and many more Board roles have built a strong understanding of the role of directors and how to bring constructive influence and strong governance to bear while allowing management the space to manage. I would be delighted to be elected by the shareholders today and be given an opportunity to add value to Aurizon in the years ahead. Thank you, Tim.

Many thanks, Lyell. The Board, with Lyell abstaining, recommends that shareholders vote in favor of the election of Lyell Strambi as a director of the company. The resolution before the meeting is that Lyell Strambi, who was appointed as an addition to the existing directors of the company on the 1st of December 2019 and being eligible, be elected as a director of the company. I'll now ask Chris whether there are any questions in relation to this item of business.

No questions at this stage, Chairman.

We might just pause again just for a moment.

Still no questions.

Okay. Well, given that, I'll now put the resolution to the meeting, once again, displayed on the platform the details of the proxies received in relation to the election of Lyell Strambi. And again, this item will be determined by poll. And if you have not already done so, please select the voting icon. Selecting this icon will bring up the list of resolutions and present you with the options. To cast your vote, simply select one of the options. And again, there is no need to hit a submit or enter button as your vote will automatically be recorded for item 2(b). [Voting]

Let's move on to item 3. Item 3 is an ordinary resolution which relates to the grant of performance rights to the Managing Director and CEO. As explained in the Notice of Meeting on Pages 4, 5 and 6, these performance rights will be granted in accordance with the terms and conditions of the company's long-term incentive plan. The resolution before the meeting is that approval will be given for all purposes under the Corporations Act 2001 and the ASX Listing Rules, including ASX Listing Rule 10.14 to issue to the Managing Director and CEO, Andrew Harding, 556,263 performance rights pursuant to the company's long-term incentive plan on the terms summarized in the explanatory notes to the Notice of Meeting. The Board, with Andrew abstaining, considers the grant of performance rights to the Managing Director and CEO appropriate in all the circumstances and recommends that shareholders vote in favor of the grant. I'll now ask Chris again if there are any questions for me in relation to this item of business.

No questions at this stage, Chairman.

All right. Well, I'll now put the resolution to the meeting, displayed again on the platform the details of the proxies received in relation to item 3. The company will disregard any votes cast in favor of item 3 by or on behalf of Andrew Harding or his associates, except where that vote is cast either by the Chairman or as a proxy for a person who is entitled to vote in each case in accordance with the directions on the proxy form or by person acting solely in a nominee, trustee, custodial or other fiduciary capacity provided certain conditions are met, as set out in the Notice of Meeting. The company is also required to disregard any votes cast by a member of the key management personnel of the company or any of their closely related persons as proxy, where the appointment does not specify the way the proxy is to vote on item 3. However, this restriction will not apply to the Chairman, where the appointment expressly authorizes the Chairman to vote on item 3. Once again, this item will be determined by poll. And if you have not already done so, please select the voting icon. The list of resolutions will come up and present you with your voting options. And to cast your vote, simply select one of the options. And again, there is no need to hit a submit or enter button as the vote is automatically recorded on item 3. [Voting]

Let's move on to Item 4. Item 4 is an ordinary resolution which relates to the approval of potential termination benefits to those employees who hold a managerial or executive office with the company. The resolution seeks shareholder approval for the Board to be able to exercise certain discretions under the company's long-term incentive plan in relation to the treatment of unvested performance rights or options that may have been granted under that plan. Details of this resolution are set out on Pages 6, 7 and 8 of the Notice of Meeting. The resolution before the meeting is that in accordance with the terms of sections 200B and 200E of the Corporations Act, approval is given for all purposes for the provision of benefits under the company's long-term incentive plan where all of the following conditions are met: the person receiving the benefit is currently or in the future an employee of the company or a related body corporate of the company; the person holds a managerial or executive office; the benefit is paid or provided on the person ceasing to hold a managerial or executive office or position of employment in the company or a related body corporate of the company; and the benefit is paid or provided on the terms set out in the explanatory notes to the Notice of Meeting. Once again, let's see whether, Chris, you've got any questions on this item of business.

No questions at this time, Chairman.

Thanks, Chris. I'll now put the resolution to the meeting. Again, on the screen are the details of the proxies received in relation to the approval of potential termination benefits. Once again, this item will be determined by poll. And if you have not already done so, please select the voting icon. Again, this icon will bring up the list of resolutions, and you'll have the voting options there in front of you. Again, to cast your vote, just simple select one of the options, and there is no need to hit submit. Your vote will automatically be recorded for item 4. [Voting]

And again, just as a reminder, the company will disregard any votes cast on item 4 by or on behalf of an eligible employee of the company holding a managerial or executive office, which includes members of the key management personnel of the company who may refer the benefit under this item 4 and their associates whether as a shareholder or proxy holder, except where that vote is cast by them as a proxy for a person who is entitled to vote in accordance with the directions on the proxy form. The company is also required to disregard any votes cast by a member of the key management personnel of the company or any of their closely related persons as proxy where the appointment does not specify the way the proxy is to vote on item 4. However, again, this restriction will not apply to the Chairman, where the appointment expressly authorizes the Chairman to vote on item 4. All right. Let's move on to Item 5. Item 5 relates to the adoption of the remuneration report of the company for the financial year ended 30 June 2020. And as set out on Pages 25 to 38 of the company's 2020 Annual Report, the remuneration report sets out the Board's remuneration policy for its executives, employees and directors. The company strives to ensure that its remuneration report is clear, transparent and demonstrates the Board's objective of ensuring the alignment of executive reward with the creation of shareholder value and that current market practices have been duly considered in terms of both quantum and structure of the company's remuneration framework. The resolution before the meeting is that the remuneration report for the financial year ended 30 June 2020 be adopted. The Board unanimously recommends its shareholders vote in favor of adopting the remuneration report. Once again, I'll ask Chris, whether there are any questions in relation to this item of business.

There are no questions at this time.

We might just wait another 10 or 15 seconds to see whether anything comes through.

No questions, Chairman.

Okay. Thanks, Chris. I'll put the resolution to the meeting. Once again, displayed on the screen are details of the proxies received in relation to item 5. And again, the company will disregard any votes cast on item 5 by any member of the key management personnel of the company and their closely related parties, except where that vote is cast by them as a proxy for a person who is entitled to vote and in accordance with the directions on the proxy form. This restriction will also not apply to the Chairman, where the appointment expressly authorizes the Chairman to vote on item 5. As this item will again be determined by poll, if you have not already done so, please select the voting icon. The icon will come up and bring up the list of resolutions, and you'll have the options in front of you. To cast your vote, again, just simply select one of the options. And again, just a reminder, there is no need to hit a submit or enter button as your vote will automatically be recorded for item 5. [Voting]

In a moment or so, I will close the poll, which will mean that shareholders, proxy holders and other representatives will no longer be able to submit votes through the Lumi platform, so please ensure that you have cast your vote on all resolutions. I'm now just going to pause for a few moments just to allow people to wrap up their voting. I'd hope that probably most people have been doing it either at the start or as we progressed, but I'll just leave it just a couple more moments. [Voting]

Okay. I think that's enough time. Thank you, everyone. I'm now going to close the poll. As is our practice, the results of the voting will be notified to the ASX later today in accordance with the Corporations Act and the ASX Listing Rules. And we'll also place those voting results on our website as soon as they become available. As there is no further business for our Annual General Meeting today, I declare the meeting closed, and thank everyone for joining us and sincerely hope that we might be able to see everyone in person next time around. Thank you again, and best wishes for the rest of your day. We'll close the call. Thank you.