Bubs Australia Limited (BUB) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to the 2022 Annual General Meeting of Bubs Australia. My name is Dennis Lin, Executive Chair of the company. Before we begin, we would like to acknowledge First Nations people as the traditional custodians of the land on which we work in Australia. We pay our respects to our elders past, present and emerging and to the youth who are working towards a brighter tomorrow. Today's meeting is being held in person and online via the Computershare meeting platform. This allows shareholders, proxies and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes. To commence today's proceedings, our Managing Director and Chief Executive Officer, Kristy Carr, will present an overview of Bubs' journey in FY '22. Following the CEO address, I will then outline each resolution during the formal business of the meeting and address your questions and comments on the resolutions on which shareholders are voting. Personally, I couldn't be prouder of Bubs Family as they worked tirelessly throughout the year to make the impossible possible against the volatile macro setting. These achievements were recognized earlier this week at the 60th Australian Export Awards hosted by the Australian Trade and Investment Commission in Parliament House, where Bubs Australia not only won our category agribusiness, food and beverage, but was also crowned the overall winner for 2022 Australian Exporter of the Year. I will present the resolutions and then open the floor for questions. [Operator Instructions] Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated or, if we receive multiple questions on one topic, amalgamated together. [Operator Instructions] Voting today will be conducted by way of a poll on all items of business. I will show the open voting for all resolutions. If you are eligible to vote, once voting opens, press the vote icon and all resolutions will be activated 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 the vote is automatically recorded. You will receive a vote confirmation notification on your screen. You can change your vote up until the time I declare voting closed. I now declare voting open on all items of business. Before closing the meeting, I will also address any general questions related to the business. I would now like to formally introduce your Board. In room with me, we have Kristy Carr, Founder and Managing Director. Kristy founded the business in 2006 and is responsible for the brand DNA and authenticity that makes Bubs so special. She leads a team of extremely talented people across all business functions between our Sydney, Melbourne, Shanghai and Los Angeles offices. We also have Katrina Rathie, our Independent Nonexecutive Director. Katrina joined the Bubs Board mid-last year. Katrina was partner in charge for King & Wood Mallesons Sydney office and brings 35 years of experience as a leading expert in international IP and a consumer brand lawyer with extensive governance experience. And with us online dialing in from the United States, we have Steve Lin, a Nonexecutive Director. Steve is Managing Partner of C2 Capital Partners, a Hong Kong-based investment fund anchored by Alibaba Group. Steve provides the Board with industry-leading expertise on growth capital, proprietary insights and operational support to scale in China. Also with us in person today is Jay Stephenson, our Company Secretary. Jay has performed this role since our public listing in 2017. Jay is a professional company secretary with extensive experience for numerous ASX-listed companies. I would also like to introduce our key management personnel. We have Iris Ren, Chief Financial Officer. Iris joined the company in 2017 and has extensive experience in financial advisory and transactions, audit and compliance. We also have Richard Paine, our Chief Operating Officer. Richard is a 30-year veteran in dairy and supply chain operations, including past experiences in key roles at Bega Cheese and Murray Goulburn. Our auditor for financial year 2022, Deloitte, is represented here by partner Andrew Sun, together with his team, who will be happy to take questions on the financial statements relevant to the audit process. Also present is Kylie Lane, a partner from our external lawyers Ashurst; and Peter Cope, who acts as our in-house General Counsel. I will now hand over to Kristy to present a business update and outline the key elements of our growth strategy to take us forward. Kristy?

Thank you, Dennis. At this time last year, we were starting to emerge from the impacts of the pandemic and learning how to manage the consequent disruptions to business norms. In a testament to Bubs' renowned resilience and agility, we stand here today in a position to report record revenues and earnings for financial year 2022 driven by innovation and margin-accretive growth across Australia, China as well as our accelerated market entry into the United States. FY '22 delivered record revenue and earnings with high growth in all key product segments and new markets. Our domestic market share continued to grow ahead of the category to reach all-time highs and deliver record market share gains. We experienced strong growth momentum across our China business with a really engineered and resurgent model in conjunction with our strategic partner, AZ Global. Additionally, in the last quarter of FY '22, we significantly accelerated our access into the United States. Our work over the previous 12 months meant that we were well positioned to respond quickly to satisfy the U.S. regulatory requirements and ensure that Bubs Australia was one of the first global manufacturers to participate in the Biden administration's Operation Fly Formula initiative to assist American families during the infant formula shortage crisis. By the end of FY '22, Bubs was ranged in over 6,000 leading grocery, department and pharmacy retail stores across 42 states in America, with a clear permanent pathway to market access and significant level of consumer brand awareness. Since June, we have shipped just over 1 million tins of Bubs Infant Formula to the United States. The speed and success of our entry into the U.S. led to a $63 million oversubscribed capital raising to support our accelerated expansion, including building inventory and in-market capability to expand the company's presence in the U.S. A portion of these proceeds will enable the company to triple our capacity of our infant formula processing and canning facility in Dandenong South, Victoria to meet our future growth in forecasted demand. Planning and procurement for a second high-speed capacity line is underway, and installation is scheduled as planned for late calendar year 2023. Cumulatively, the steps we have taken to diversify and expand our business delivered a positive underlying EBITDA, accompanied by group-wide margin gains from optimizing our product and channel mix. Innovation is inherent in Bubs' DNA and a key driver to our high-growth strategy. With the launch in FY '22 of Bubs Supreme A2 beta-casein protein in our most profitable business segment, we are now able to cater for a more significant share of the addressable infant formula and toddler milk market, thereby strengthening our position in the total category to build widespread recognition of the Bubs brand as synonymous with clean, high-quality infant nutrition. Bubs Supreme is our most advanced formulation to date, enriched with higher levels of Omega-3 plant-based DHA and Omega-6 ARA, a symbiotic blend of pre and probiotics, lutein for normal eye health support as well as vitamins and minerals for optimal nutrition. Bubs Supreme has been awarded the Clean Label Purity Award, meaning it is free from GMOs, artificial colors and preservatives, maltodextrin, corn syrup, palm oil and over 400 contaminants, including heavy metals. The launch of this new product line means Bubs master brand now competes in the 3 fastest-growing segments of the infant formula category: goat, organic and A2 protein. The same Australian label products that are sold here in Coles, Woolworths and Chemist Warehouse are exported to both China and the U.S., enhancing efficiencies in our procurement, supply chain and manufacturing processes. Strategically, we advanced 2 major regulatory milestones this year that will have a material long-term influence on the business. Firstly, we accelerated access into the United States with our early acceptance by the U.S. Food and Drug Administration or FDA in the last quarter of FY '22 to permit the import of Bubs Infant Formula products under the Enforcement Discretion policy. Further advancing our United States market access ambitions, in this quarter, we lodged a letter of intent with the FDA under its transition plan for continued enforcement discretion for all 6 of Bubs Infant Formula products and are committed to fully complying with the applicable requirements for a permanent regulatory authorization by October 2025. This means we will be able to continue to import our full range of Australian label formula products and remain on shelf without disruption while we complete the remaining regulatory requirements. Secondly, we advanced plans to establish manufacturing capability in China in a joint venture with an established China-based infant formula manufacturer to attain approval from the State Administration of Market Registration (sic) [ State Administration for Market Regulation ] or SAMR for Bubs Chinese label Goat Milk Infant Formula products, which would subsequently provide the company market access to China's General Trade in mother-and-babies bricks-and-mortar stores for the first time. If the application is approved, the existing brand slot will be rebranded as Bubs and be compliant with the new GB regulatory requirements, which come into effect in February 2023. Only a select few multibillion-dollar multinational companies around the world have the same level of regulatory access to both China and the U.S., the 2 largest infant formula markets in the world. This is a true reflection of Bubs' agility to navigate and penetrate unique growth markets that are not readily accessible to others. FY '22 gross revenues were more than double that of FY '21 at $104.2 million at 123% increase on prior year. This growth trajectory was bolstered by Bubs Infant Formula growing at 177% on prior year and China revenue growth increasing 166% year-on-year. This scalability allowed us to report our first full year of underlying EBITDA profit of $4.8 million. These strong financial outcomes were particularly pleasing given the lingering impacts of COVID-19, supply chain disruption, inflation and the global economic uncertainty. Group branded margins improved with our infant formula portfolio showing material margin gains. Gross margins increased significantly over the year to 32% for the group, and product margins for Bubs Goat Milk Infant Formula increased to 40%. This was driven primarily by increased scale, a growing proportion of sales derived from higher-margin infant formula, optimization of product and channel mix, improved supply-side economics derived from our vertically integrated manufacturing model. Emerging from the pandemic, diversification has remained at the forefront of our strategic focus. Importantly, the success of our portfolio expansion means we are no longer dependent on goat milk infant formula sales into China for margin growth. We were very pleased with the diversified product and channel mix in FY '22 and anticipate continued optimization in the diversified spread of revenue contribution in FY '23 and beyond. This brings us to our master growth strategy, which is founded on the key values of being a trusted source of nutrition with strong clean-label attributes underpinned by our expertise in specialty dairy. Operationally, we will leverage Bubs portfolio expansion with the premium segments in which we operate remaining in high growth as well as our strategic alliances in key markets with the highest growth category potential. Over the last 12 months, we have become more acutely aware of the evolving desires of consumers and their purchase behavior. This is particularly pronounced in the U.S.A. where parents have become accustomed to making online purchases and conducting significant research online. At the same time, they continue to desire access to infant formula in everyday bricks-and-mortar stores, especially premium formulation that are more akin to those here in Australia and in Europe. We observed similar phenomenon in China, which was the genesis for our Manufacturer to Consumer, otherwise known as the M2C, model, which will now give us visibility of knowing where each tin of infant formula is sold to the final consumer. This level of visibility has not been achieved by any brand in the past as it requires a vertically integrated brand manufacturer to partner deeply with the channels as we have done with AZ Global. Over the next year and beyond, we will take these learnings and focus on precision performance growth. Precision requires access to data for analysis so that we know where to invest each marketing dollar to obtain the best return as well as topics that are top of mind for consumers and channel partners. Having seen the growth momentum that is now being achieved in M2C through targeted investments, we are confident of creating material growth momentum in China long term. In the U.S.A., we have achieved the challenging task of having stocks in now over 6,500 bricks-and-mortar stores. Through performance and growth marketing, a term that refers to significantly growing revenue using targeted digital marketing strategies, we are also confident of building on existing -- our existing consumer base in the U.S. and creating our own Bubs communities for years to come. Having worked through the largest infant nutrition markets in the U.S.A. and China, it has also provided us with a fresh lens of how we may be able to grow our market share at a faster rate here in Australia with refreshed brand identities that stay true to our values through positive and supportive discussions with parents about their baby feeding journeys. In Australia, we will protect and grow our share in our home market where we are -- still remain the fastest-growing infant formula manufacturer and continue to outperform the category in compounding value growth. In FY '22, domestic revenue increased by 17% over the previous year and contributed 16% to our total group revenue. Retail Scan data shows Bubs as the clear challenger brand, outperforming the category with high scan sales growth and market share gain, recording new market share peaks in Chemist Warehouse, Woolworths and Coles. Bubs sales growth was more than twice of any of its competitors and now stands at 4.9% share of the total domestic market. Bubs is proudly the #1 goat formula brand in Australia with 56% share of the total category and #2 organic formula brand here in Australian retailers. China is the world's largest formula market. And whilst industry-wide headwinds were prevalent throughout FY '22, consumer demand for Bubs products remains strong, and the market potential provides the company with our greatest opportunity for growth. After the initial COVID-led disruption caused by border closures, we worked closely with our strategic partner, AZ Global, to reengineer how our products were routed through the Daigou channel. This alliance and pivot in strategy led to rapid revenue growth in FY '22 and has enabled the direct delivery from within China via reseller recruitment for Bubs brand representatives. During the first quarter of FY '23, Bubs led the launch of the enhanced M2C model, powered by proprietary software applications developed by AZ Global. The new M2C model provides us with real-time end-to-end product visibility and sell-through data for Bubs products. It enables participants to become brand ambassadors and benefit in introducing products to their respective communities in a low-touch manner without working capital needs and with consistent brand marketing content provided by Bubs as well as all products being appropriately tax cleared in preparation for China's impending Golden Tax System Phase IV, which is due to officially commence in early 2023. The company expects to engage in an aggressive expansion plan in second half of FY '23 that will provide a new level of corporatized brand distribution of infant formula in China. The United States is the second largest infant formula market globally, valued at USD 5.6 billion. Up until now, it is, for all intents and purposes, been a closed market, tightly held by a select few multinationals. However, the weakness of this concentrated capacity was exposed when the market leader had to suspend operations due to a contamination scare, triggering a dangerous shortage that left retailers' shelves empty for months and widespread panic among new parents. Bubs was the first manufacturer in the world to respond to Biden administration's call for international assistance, demonstrating our agility and long-term commitment to the American market as our next growth horizon. In May, the company was permitted to import all 6 Bubs Infant Formula products under the Enforcement Discretion policy, which led to the U.S. government chartering 6 747 cargo planes to deliver over 0.5 million tins of Bubs Infant Formula under Operation Fly Formula. Speed to market has unlocked enormous value as we have rapidly scaled our retail footprint, which now stands at over 6,500 stores across 42 states, including the largest 4 retailers of infant formula in the U.S., namely Target, Walmart, Albertsons-Safeway and Kroger, as well as health food retailers like Whole Foods, baby retailers like Buy Buy Baby and e-commerce marketplaces like Amazon. We are confident we can satisfy the requirements for permanent market access under the FDA Guidance for Industry: Infant Formula Transition Plan, to continue supplying all Bubs Infant Formula products to the U.S. on a permanent basis. In summary, Bubs team have demonstrated resilience, agility and strategic focus throughout financial year 2022, delivering a strong strategic scorecard and record performance results. We entered FY '23 with a diversified product portfolio in our most profitable business segment, a new growth horizon with the accelerated market access in the U.S.A., a reengineered business model in China that provides us with end-to-end channel visibility, permanent regulatory pathways for full access to the world's 2 largest infant formula markets and a robust balance sheet to increase our manufacturing capacity and support our future growth plans. Looking to the future, management continues to focus on delivering our operational action plan for building on our strategic foundations to counter unfavorable macro forces impacting our business. We remain focused on our long-term high-growth agenda and delivering on our vision to make Bubs a leading global infant formula brand. Short-term revenue growth is likely to be constrained by the transition to the new M2C model in China and sell-through of the initial high-volume pipe-fill orders to retailers in the U.S. Due to this phasing, we expect the first half of 2023 revenue to be largely consistent with prior year, with strong growth momentum to be realized in the second half of FY '23. Overall, we expect FY '23 to deliver healthy growth in revenue, further improvements to our product margin. The business will increase its investment in resources and marketing and support the growth in demand. In the second half of FY '23, the business will also commence an ERP upgrade project, which will bring further efficiency and automation to daily business operations. With the business achieving critical scale, our focus will be on margin accretion, from farm to consumer and earnings growth. Despite the ongoing macro challenges and softer start to the financial year than planned, we remain confident in achieving our long-term growth ambitions. Finally, I would like to take this opportunity to thank the Bubs Family wherever they are around the world for the way they are able to rise to the challenges of responding to the significant macro forces during the year. And I would also like to particularly highlight the superhuman effort the team demonstrated in delivering on our promise to American parents during the crisis with the delivery of 1 million tins of formula to date. We couldn't have achieved what we have this year without their loyalty, dedication and entrepreneurial spirit. Congratulations to all of you on winning the 2022 Exporter of the Year award earlier this week. I would also like to extend my gratitude to our shareholders and strategic partners for your ongoing support of Bubs journey to becoming a global dairy company and category leader in infant nutrition. That concludes the FY '22 business update, and I will now hand back to Dennis for the formal business of the meeting.

Thank you, Kristy. Since by now, you will have received the Notice of Meeting, with your permission, I will take these as read. I'm advised by our company secretary that this meeting is properly constituted, that the proxies have been inspected and all those validly lodged have been accepted and that the necessary quorum of shareholders is present. Now it being the Annual General Meeting for the company, I'm obliged to table the financial statements, directors' report and auditor's report for the company for the year ended 30th of June 2022. So I now table those documents, which are contained in the annual report, which is available on the company investor website. In the presence of the company's auditors, if anyone would like to address any questions or comments on the financial statements, I'm happy to receive them at a relevant time for questions in our meeting. I'll now turn to the resolutions for today's meeting. On the screen, you will see there are now 9 resolutions before the meeting today. The 9 resolutions before the meeting today are: number one, the adoption of remuneration report; number two, the reelection of myself as a director; resolution number 3, approval of issue of securities under the employee share rights plan; resolution number 4, approval of issue of share rights to Executive Chair, myself, Dennis Lin; resolution number 5, approval of issue of share rights to Managing Director, Kristy Carr; resolution number 6, ratification of prior issue of shares; resolution number 7, amendment to constitution; number 8, appointment of new auditor; and finally, number 9, increase in nonexecutive directors' fee pool. Resolution 1 is a nonbinding ordinary resolution. Resolution 7 is a special resolution, which will be passed if at least 75% of the votes cast by shareholders entitled to vote on the resolution are voted in favor. All other resolutions are ordinary resolutions that will be passed if more than 50% of the votes cast by shareholders present or by proxy are voted in favor. I confirm that all resolutions will be held by poll. I will now proceed to put forward the resolutions to shareholders. Resolution 1, the adoption of the remuneration report, which is a nonbinding resolution. The motion is that, for the purpose of Section 250R, subsection 2 of the Corporations Act and for all other purposes, approval is given for the adoption of the remuneration report as contained in the company's annual financial report for the financial year ended 30th of June 2022. The proxies are outlined on the screen. Ladies and gentlemen, at a listed company's Annual General Meeting, a resolution that the remuneration report be adopted must be put to shareholders. Please note that the vote on this resolution is advisory only and does not bind the directors or the company. Resolution number 2, being the reelection of myself. As this resolution relates to myself, I will now pass the chair to my fellow director, Katrina Rathie. Katrina?

Thank you, Dennis. The motion is that for the purpose of clause 14.2 of the Constitution, ASX Listing Rule 14.4 and for all other purposes, Mr. Dennis Lin, who retires as a director by rotation and being eligible, is reelected as a director. The proxies are as outlined on the screen. And I'll now pass back to Dennis.

Thank you, Katrina. Moving on to resolution number 3, approval of the issue of securities under employee share rights plan. The motion is that for the purpose of ASX Listing Rule 7.2, Exception 13(b) and for all other purposes, approval is given by the company to issue equity securities under the employee incentive scheme titled employee share rights plan on the terms and conditions set out in the explanatory statement. The proxies are outlined on the screen. Moving on to resolution number 4, approval of issue of share rights to myself. As the next resolution relates to me, I will now pass the chair back to my fellow director, Katrina.

The motion is that for the purpose of ASX Listing Rule 10.14 and for all other purposes, approval is given for the company to issue 606,502 share rights to Dennis Lin or his nominees under the employee share rights plan on the terms and conditions set out in the explanatory statement. The proxies are outlined on the screen. And I'll now pass back to Dennis.

Thank you, Katrina. Moving on to resolution number 5, approval of issue of share rights to Managing Director Kristy Carr. The motion is that for the purpose of ASX Listing Rule 10.14 and for all other purposes, approval is given for the company to issue 1,091,703 share rights to Kristy Carr or her nominees under the employee share rights plan on the terms and conditions set out in the explanatory statement. The proxies are outlined on the screen. Moving on to resolution number 6, ratification of prior issue of shares. The motion is that for the purposes of ASX Listing Rule 7.4 and for all other purposes, shareholders ratify the allotment and issue of 63,374,717 shares to eligible institutional investors on the terms and conditions set out in the explanatory statement. The proxies are outlined on the screen. Moving to resolution number 7, amendment to constitution. The motion is that for the purposes of Section 136 subsection 2 of the Corporations Act and for all other purposes, approval is given by the company to amend its constitution to include new provisions around the use of technology by the company as set out in item 7 of the explanatory statement. The proxies are outlined on the screen. Resolution number 8, appointment of the auditor. The motion is that subject to ASIC consent of being received by the company for Deloitte Touche Tohmatsu to resign as auditor for the purpose of Section 327B(1)(b) of the Corporations Act and for all other purposes, KPMG, having been nominated by a shareholder and having consented in writing to act, be appointed as auditor of the company. The proxies are outlined on the screen. Finally, resolution number 9, increase in nonexecutive directors' fee pool. The motion is that for the purposes of clauses 14.7 and 14.8 of the company's constitution, ASX Listing Rule 10.17 and for all other purposes, approval is given for the company to increase the total aggregate fixed sum per annum to be paid to nonexecutive directors by $200,000 to no more than $500,000. The proxies are outlined on the screen.

We will now address any questions from our shareholders. [Operator Instructions] And Jay, I believe you have several questions as well. So I think what we might do is we might take any questions from the floor first. And Jay, if you could actually help me by, I guess, just letting me know the question and also, to the extent possible, the identity of the person asking the question as well.

Yes.

All right. So firstly, any questions from the floor? No? Okay. Well, you can -- if you do think of any at any time, please feel free to raise your hand. Jay, did you want to actually go through the questions that have come through online?

Yes. So there's 3 questions, and they're all from the same shareholder, Mr. [ Brian Lee ]. First question is, it seems that China is adhering to its COVID zero policy. Assuming if the restrictions remain in place for the rest of 2023, even into the first half of 2024 financial year, will the operation in China alone cost and revenue expect to be at least breakeven or even net profit positive?

Okay. Jay, thank you very much for that, and thank you for Mr. [ Lee ] for sending through the question. I think it's fair to say that the last 3 years have already been quite extraordinary for us in dealing with the COVID environment. So we respect any country in the way they choose to, I guess, govern. And certainly, in relation to China, the COVID zero policy is, first of all, no different to what we have been dealing with over the last 2 to 3 years. And I think as you can see from FY '22, that China was a significant contributor as a market for us both in terms of revenue as well as the bottom line. And so certainly, this is a business that does not rely on China, as we have mentioned before, that we now have the U.S. and Australia that are also contributing materially to the business. But certainly, China is a material part of the business that we operate in. I would simply say that as we sort of move into the remainder of FY '23 and FY '24, the policies in China do not, I guess, worry us because it's no different to what we have worked on over the last 3 years. But certainly, it remains a risk that we continue to monitor or observe. Thank you, Jay.

Second question from Mr. [ Lee ] is, Mr. Lin previously said that he expects net cash positive is likely to occur in 2023. Has his view changed since the last shareholder meeting?

Okay. No, thank you, Mr. [ Lee ], for that question. We do have, I guess, the discipline that is required by the ASX, and I think it's a good one, for us to actually report our cash flow on a quarterly basis. And therefore, you will have seen that during the first quarter, because we were required to actually hold additional inventory for the impending growth, that our cash was down during the first quarter. Certainly, we are expecting our second half to show significant growth and through being able to actually maintain our product margin for that to be offset. Jay?

Third question from Mr. [ Lee ]. Has Bubs considered a dividend scheme as a form of returning benefit back to its shareholders once net operating income turns more consistently positive?

Thank you, Mr. [ Lee ], for that question. The answer is most certainly. We are a high-growth company. And as a result, our focus has been on attaining scale at the revenue line and not doing it at all costs, which is why we continue to talk about gross margin and product margin to ensure that the growth is profitable because having sustainable gross margin is really the underlying engine that will allow us to actually reward our shareholders through the consideration of a dividend policy. So I can certainly assure, I guess, our shareholders that it is always a conversation that we have around the Board table, around how we may be able to actually act in the best interest of shareholders, whether that would be to reinvest the cash for growth or to return that to shareholders in time. Jay, are there any other questions?

No further questions.

Okay. No worries. Do we have any questions from the floor? Please.

Thank you. First of all, I'd like to congratulate the team on this [ meeting ], with which you've been able to satisfy the requirements of the U.S. and ship quantity within such a short period of time. Compliments to the management on that one. My question is, when will the cash generation from the operations of the company be sufficient to support the growth of the company in the future? Are there any plans for further capital raisings on the basis of your current growth plans?

Thank you. So for those that are online, the -- I might just repeat the question if it's okay. The question was, does the company envisage the existing balance sheet to be sufficient to take the company to a cash flow-positive and self-generating scenario? And whether we have any additional capital-raising plans. I will firstly say that we do operate in a very volatile environment. And therefore, I always caution that to be an issue. But at the same time, I can assure you that the Board and management are 100% focused on making sure that we have plenty of firepower within our existing balance sheet to take the company forward to that position without any further capital raise. Okay. Any other questions from the floor? No? Do we have any audio questions, Jay?

There are no audio questions.

Okay. No worries. I always like to give people another 10, 15 seconds just in case they have last-minute questions. Okay. On the basis that we have no further questions, that concludes our discussion on the various items of business. Now in a couple of minutes, I will close the voting system. Please ensure that you have cast your vote on all resolutions. I will now pause to allow you time to finalize those votes. There will be 60 seconds for those that are online. Thank you.