Dyno Nobel Limited (DNL) Earnings Call Transcript & Summary

Good morning, and welcome to the 2021 Annual General Meeting for Incitec Pivot Limited. My name is Brian Kruger, and I'm very pleased to address this meeting as your Chairman. Before we begin, I'd like to acknowledge the traditional owners and custodians of the land, sea and waters from where I am joining you today. For me, that is the peoples of the Eastern Kulin Nation. I also acknowledge the traditional owners and custodians of the various lands from which you're all joining this meeting today. And I pay my respects to elders, past, present and emerging. The company secretary informs me that in accordance with the company's constitution, a quorum is present. I, therefore, declare this Annual General Meeting open. We are committed to ensuring Zero Harm for our shareholders, our employees, our community and other stakeholders. Therefore, in light of the COVID-19 pandemic, your Board determined that it was appropriate for this year's AGM to be held virtually through an online platform. The AGM is a very important opportunity for your Board to report to you and receive your views. While this online format may be familiar to some shareholders, I acknowledge that it may be less so for others. I assure you that you will have the same opportunity to participate today as you would at a physical meeting. This includes being able to ask questions through the online platform or telephone line and vote using an electronic voting card. I'll discuss these processes a little later. As with any online platform, you will appreciate that technical difficulties may arise during the course of this meeting. This could be due to Internet issues at our end or at your end. If we do experience any major technical issues during this meeting, we'll provide an update as to next steps via the ASX. I'd now like to introduce my fellow directors who are joining me virtually for the Annual General Meeting today: George Biltz; Bruce Brook, who is standing for reelection today; Tonianne Dwyer, who is standing for election today; Xiaoling Liu; and Greg Robinson. Our Managing Director and CEO, Jeanne Johns, is present with me today; as well as our Company Secretary, Richa Puri. Tim Richards, who is our lead audit partner from Deloitte, the company's auditor, also joins us virtually today. Tim is available to answer questions regarding the audit of the company's 2021 financial report, which will be discussed as the first item of business. Timothy Farag of Link Market Services, the company's share registry, will act as returning officer for the poll that will take place. Before we consider the items of business, there are a number of procedural matters that I wish to explain in relation to the voting process and how shareholders may ask a question during today's meeting. The vote on all resolutions will be conducted by way of a poll, and I now declare the poll open in relation to all items of business. While our visitors and guests are most welcome to join us online today, this is a shareholders meeting. And only shareholders, their attorneys, proxies and authorized company representatives are able to vote and ask questions at this meeting. The online meeting platform provides shareholders and their representatives with the ability to get a voting card and ask a question. Once you have registered to vote at the meeting, your voting card will appear with all of the resolutions to be voted on by shareholders at this meeting. Shareholders participating online through the virtual AGM platform can ask a question by clicking on the Ask a Question button, typing your question and pressing Submit. I encourage shareholders attending online that may wish to ask a question to start sending through their questions now. There's no need to wait until the relevant item of business. Shareholder questions that were received prior to the meeting will be addressed during the speeches by the Managing Director and CEO and myself and also during the question time. This year, shareholders are also able to ask questions early via our telephone conference line. To utilize this teleconference facility, holders must use their unique pin provided to them by Link Market Services. When you dial in online, you'll be asked to mute your sound from the online platform and listen to the meeting by phone. If you wish to ask a question, you'll need to dial star 1 on your keypad that will indicate to the moderator you wish to ask a question. The teleconference moderator will require your name and will introduce you prompting you to ask your question by unmuting your line at the relevant time. In order to ensure that all shareholders have a reasonable opportunity to comment and ask questions, I request that you only ask one question at a time. I'll take questions on the items of business as we deal with each item. I'll first respond to written questions submitted by shareholders via the online platform and submitted to the company prior to the meeting, followed by shareholder questions over the telephone line. Felicity Watson, our Group Communications Manager, will read out the written questions. All questions will be directed to me as Chairman of the meeting. Questions sent via the online meeting platform will be moderated to avoid repetition, and we may group questions together in the interest of time. You'll find instructions on how to vote in the virtual AGM online guide that was published to the company's website and the ASX on 17th of November. The guide is also available to download from the platform. If your proxy has specified how you are to vote, you do not need to mark your voting cards in relation to these votes as they've already been captured by the share registry. If you are a shareholder or proxy holder with open votes, please record your votes by placing a mark in the For, Against or Abstain box next to each resolution. Details of the proxy votes received in relation to each item will be displayed as each resolution is presented. I'm holding open proxies in my capacity as Chairman, and it's my intention to vote proxies in favor of the resolutions 1 to 5 and against resolutions 6A and 6B. Any directed proxies that are not voted at the meeting will automatically default to me as Chairman of the meeting, and I'm required to vote those proxies as directed. Your Board recommends that you vote in favor of resolutions 1 to 5 and against resolutions 6A and 6B. Voting will close 5 minutes after the closure of this meeting. Now if there are any aspects regarding the voting that you're unsure about, please contact Link Market Services, whose contact details are provided at the top of the screen in the online platform. Before continuing with the formal business of the meeting, I'd like to provide an update on the performance of the company and developments during the year. I will then invite our Managing Director and CEO, Jeanne Johns, to address the meeting. Our business once again successfully navigated the challenges of the global pandemic and produced a strong overall performance while also advancing our strategic agenda. Crucially, this has included a significant emphasis on sustainability. And during fiscal '21, we released our first climate change report, which sets out our ambition to be net zero by 2050 and or sooner if practical. I'll talk in detail about our actions on climate change soon. We had a core focus throughout the year on the safety of our people, customers and communities, enabling us to continue to safely operate and service our resources and agricultural customers. Overall, our company reported a 51% increase in earnings before interest and tax excluding individually material items or IMIs to $566 million. Our net profit after tax excluding IMIs of $359 million was up 91% compared to fiscal '20 as we benefited from a significant improvement in commodity pricing during the year. Our premium technology offering in our Dyno Nobel explosives business is continuing to gain traction with our customers, and our explosives business proved resilient in fiscal '21. A standout in the result was our Fertilizers business, which benefited from improved commodity pricing and a strong agricultural season. We've reduced our net debt and maintained an investment-grade credit profile with a reduction in our net debt-to-EBITDA ratio from 1.4x to 1.1x at year-end. Our improved earnings performance, strong cash generation and balance sheet strength resulted in a final dividend of $0.083 per share, taking our total dividend to $0.093 per share. We continue to focus on improving our after-tax return on invested capital, which during the year increased to 5.8%. Looking to the future, we're committed to ensuring we have an appropriate capital structure to support the opportunities ahead for our business as well as delivering strong returns for shareholders. And in fiscal '22, we will continue to prioritize capital-light, high-return investment opportunities. As I mentioned earlier, climate change has been a significant area of focus, and we're accelerating our efforts and exploring opportunities to help create a more sustainable world. We'll continue to listen and respond to the valuable input of our shareholders and broader stakeholders, and I acknowledge the 2 shareholder requisitions before you today. The Board has carefully considered both of these. Regarding resolution 6A, the Board does not believe changing the company's constitution will enhance our ability to understand the views of our shareholders and broader stakeholders. We already have a number of avenues available for shareholders and stakeholders to tell us what they think, including how we're doing on important issues such as our response to climate change. At the same time, we're committed to evolving our climate change and sustainability disclosures to reflect stakeholder expectations and interest. And in our AGM next year, we intend to provide our shareholders with the opportunity to have an advisory 'Say on Climate' vote on our climate change management strategy. Our climate change report was released for the first time this year as a stand-alone report, fully aligned to the Task Force on Climate-Related Financial Disclosures guidelines. This report describes our pathway and ambition to reach net zero by 2050. It also sets out our short-term 5% absolute greenhouse gas reduction target, which we brought forward to 2025 and our commitment to a new medium-term target of 25% by 2030, both against our 2020 baseline. Resolution 6B calls for these short- and medium-term targets, along with the Scope 3 target, to be aligned with the Paris Agreement. Our net zero ambition by 2050 is aligned with the Paris Agreement. And while our short- and medium-term targets are not yet fully Paris aligned, we will continue to investigate how we may achieve this and as soon as possible. A method for the chemical sector to set science-based Paris-aligned targets is currently being developed by the science-based target initiative. Our targets will be evaluated against this as soon as it's published. Jeanne will outline next some specific projects that we are progressing as we look to accelerate our targets. We've also outlined our opportunities to develop Scope 3 targets. As part of our climate change strategy, we'll continue to leverage our leading technology and manufacturing expertise to produce more sustainable products with lower emissions for our customers. The emissions associated with fertilizer use make up half of our Scope 3 emissions. We will be able to set measurable targets for our lower emissions enhanced efficiency fertilizer range when there is an independently accepted methodology to calculate the percentage reductions associated with these fertilizers. For our Explosives business, we're investigating the greenhouse gas reductions associated with our world-class blasting technology, DeltaE, via customer partnership. This technology continues to help customers reduce their carbon footprint, and our partnership will quantify the greenhouse gas reductions associated with its use. We recognize that we have more work to do. And in fiscal '22, we'll be enhancing our Scope 3 emission reduction strategy disclosure. As we continue our pathway to net zero, our strategic decisions will be guided by the need to meet our targets and deliver shareholder returns. We've put in place a robust governance structure at both the Board and executive level to do this. Our Decarbonization and Energy Transition Steering Committee has executive oversight of the development of our net zero pathway and the implementation of the projects to achieve it. Chaired by our Managing Director and CEO, the Committee provides regular updates to the Board. The Committee includes key members of the executive team, including the Chief Strategy and Sustainability Officer, Sunil Salhotra, who joined us in October. Our approach to decarbonization is a just transition that will protect and sustain employment for our people and communities. And we'll continue to listen and respond to the valuable input of our stakeholders, including from our shareholders here today. Looking now at our broader strategy, and we're really pleased with our progress in what was operationally a very busy year. In Explosives, our business growth strategy has been aligned with changing customer demand profiles. And our market-leading technology continues its momentum, including our new wireless product that has been very well received by our customers. Our Fertilizers business has made good progress, repositioning our stable distribution earnings for growth and is well placed to benefit from favorable commodity prices and agricultural conditions as it grows to a sustainable soil health company. In manufacturing, we see a lot of potential upside from a step change in reliability, following the heavy turnaround schedule that commenced in fiscal '21 and that will be completed in fiscal '22. During the year, we welcomed Tonianne Dwyer as a Non-Executive Director to our Board, and Tonianne has been a valuable addition bringing extensive international experience as a company director and an executive. And you'll hear from Tonianne later in the meeting. I'd also like to thank my fellow Board members for their contribution throughout the year. Finally, I want to thank our people for their incredible hard work and dedication. They've risen to the many challenges of COVID and been outstanding in their response. I also want to sincerely thank Jeanne and the executive team for their impressive leadership. I'm now pleased to hand over to Jeanne, who will speak in more detail on the company's performance over the past financial year and our strategic agenda moving forward.

Thank you, Brian. And good morning, and welcome to our shareholders and others joining us for today's webcast. Before I start, I'd like to acknowledge the traditional custodians of the land, we are coming to you from today, the peoples of the Eastern Kulin Nation. I pay my respects to their elders, past, present and emerging. I would also like to acknowledge Chairman, Brian Kruger, my fellow directors, the executive leadership team and all our employees. I'm delighted to be with you this morning to talk with you as your Managing Director and CEO about our business, which has delivered strong financial results during fiscal '21 as we continue to progress our strategy. Our strict COVID-19 protocols and resilient supply chains enabled us to continue to safely operate and supply our resources and agricultural customers with the high-quality products, solutions and support they need. Our number one value and our license to operate, Zero Harm, has been especially important during a global pandemic. We've continued to be vigilant, and our teams have done a great job adhering to our COVID-safe protocols. The additional controls with increased hazard recognition and reporting have, however, negatively impacted some of our key safety metrics and resulted in a mixed performance on Zero Harm. We are redoubling our efforts to get back on track with targeted site-specific safety programs, and we've also refreshed our company-wide safety training program, SafeTEAMS. On a positive note, our efforts to reduce our impact on the environment have been reflected in our improved performance during the year. I want to turn now to sustainability and our climate change agenda, which we've been working to embed across our strategy and operations. In November, we released our first stand-alone climate change report, which is fully aligned to the Task Force on Climate-Related Financial Disclosure guidelines. It sets our long-term ambition to achieve net zero as soon as practical and includes our potential net zero pathway by 2050. As Brian explained, our pathway currently requires investigation of new and emerging technologies, and we will continue to investigate opportunities to set Paris-aligned targets. As part of our work investigating key enabling technologies, we're leveraging our world-class ammonia expertise to determine the commercial feasibility of green ammonia production. We have formed two significant partnerships to do this. This week, we announced our partnership with Fortescue Future Industries has reached the first milestone in our exciting project to develop industrial-scale green ammonia production at our Gibson Island facility. Based on preliminary studies, FFI have found the project to be technically feasible and issued us with a notice to proceed to the next phase. We will now negotiate an agreement to progress to a front-end engineering design study which will inform a potential final investment decision. This provides the potential to transition Gibson Island to a renewable manufacturing future, following our decision in November to cease operations at the end of 2022. This difficult decision was reached after being unable to secure long-term, affordable gas supply, and we continue to support our people at the site. We've also commenced work with 2 of Singapore's leading companies: Keppel Infrastructure and Temasek Holding, to investigate the feasibility of producing green ammonia at two Australian sites to meet the rapidly growing demand for carbon-free energy across Asia. We're also progressing key projects to deliver our short- and medium-term absolute greenhouse gas emission reduction targets. At our Waggaman plant in the U.S., we are investigating several opportunities to capture and permanently sequester the carbon dioxide from our ammonia manufacturing process. And at two of our nitric acid plants in Moranbah, Queensland; and Louisiana, Missouri; we're investigating further abatement of nitrous oxide emissions. Moving now to a broader look at our business performance. We had a strong finish to the year. delivering our net profit after tax excluding IMIs of $359 million, up 91% compared to fiscal '20. We have two strong high-quality businesses in Dyno Nobel and Incitec Pivot Fertilisers that are industry leaders in attractive markets with quality customers, strong upside from technology and opportunities in the future decarbonized world. Our Dyno Nobel explosives business serves two highly attractive mining markets in the Americas and Australia. Adjusting for manufacturing performance, our Americas explosives business grew 15% to USD 139 million in fiscal '21, reflecting the market recovery from COVID and the strong demand for our premium technology. Premium Emulsion sales were up 22%. And Electronic Detonators, up 18% in fiscal '21. And in Dyno Nobel Asia Pacific, strong growth from our premium technology, for the first time, outpaced the last impact of our recontracting cycle. EBIT was down AUD 9 million to AUD 140 million as the business absorbed a AUD 15 million negative impact from the planned turnaround at Moranbah during the second half. Pleasingly, Electronic Detonator volumes grew 22% last year, with underlying volumes for Premium Emulsion strong. As the world responds to climate change, Dyno Nobel is well positioned for growth in the attractive base and precious metals and the quarry and construction market. Our Fertilizer business delivered earnings before interest and tax of AUD 268 million in fiscal '21, a significant increase from AUD 26 million last year as the business benefited from an upswing in commodity prices. The fertilizer business is transforming into a soil health company for Australian farmers with innovative products and services to support a more sustainable agricultural future. This week, we announced our majority ownership and investment in Australian Bio Fert. And we will build a facility using new technology and combining organic waste, carbon and mineral fertilizers to create a novel and more sustainable category of high-quality fertilizer. The product created through this process is expected to reduce life cycle greenhouse gas emissions compared to composting and spreading the organic waste directly. It's a great example of the circular economy in action and part of our commitment to help our farming customers grow the best crops, improve their soil health and look after the environment. In manufacturing, our manufacturing excellence strategy remains unchanged, helping to drive turnaround scoping and improve reliability at our key assets. Our end-state manufacturing model has now been finalized, creating 3 end-to-end business units. Integrating manufacturing with our supply chain and customer-facing businesses has worked very well since the transition in July with better day-to-day accountability and oversight and ensuring that operational resources are available locally to deliver technical support. We have recently established a new global function, health, safety environment and operations excellence led by Stephenie De Nichilo, who has joined my executive team, the function sets and assures global standards and processes for operational excellence, asset management planning and company-wide HSE. While our Waggaman plant faced challenges with its restart following the planned turnaround in the first half of fiscal '21, we've been really pleased with the performance of the plant since then. The plant started flawlessly from a full cold restart after being taken offline as a precautionary measure in August ahead of Hurricane Ida. And the Waggaman plant has since delivered at nameplate. Now I'd like to turn to our leadership team and acknowledge Nick Stratford, who made a significant contribution to our business during his career with us, including most recently as CFO. I want to thank him for his valuable service and wish him well on his new opportunity. I'm pleased that Chris Opperman, who most recently was our CFO of our Dyno Nobel Asia Pacific business has stepped into the CFO role on an interim basis as we progress an international search for a permanent replacement. I would like to acknowledge the executive team for their outstanding leadership during the past year. It's our people who make our company great, and I want to thank all of our people across our global operations for their incredible hard work over the past year. I have admired how our people have overcome the challenges of COVID and provided impressive service and support to our customers. And before closing, I'd like to thank Brian and the Board for their continued support and wise counsel during the year. Looking ahead, your company is in a strong position as we enter fiscal '22 with our explosives and fertilizer businesses well positioned to benefit from the execution of our strategy as well as the continued strength in commodity pricing. We have strong momentum and the right strategy to take full advantage of the positive conditions ahead. Thank you, and I'll now hand back to Brian.

Thank you, Jeanne. I'll now proceed with the formal business of the meeting. The first item of business is to receive and consider the consolidated financial report of the company as well as the reports of the directors and the auditor for the year ended 30 September, 2021. This item doesn't require a resolution to be put to the meeting. It does provide an opportunity for shareholders to ask questions or make comments on the financial report and the management of the company. As I mentioned earlier, the company's auditor is available to answer any questions in relation to the conduct of the audit, the preparation and content of the auditor's report, the accounting policies adopted by the company in relation to the preparation of the financial statements and the independence of the auditor in relation to the conduct of the audit. I now invite shareholders to ask questions or make comments on this item. There will be sufficient time for shareholders to ask questions regarding the other items of business later in the meeting. Any questions relating to the Remuneration Report and the climate change report will be held over until we come to those items. I'll now take questions from shareholders who have sent in written questions. Felicity, are there any questions?

Chairman, we have a question from shareholder Conga Investments. One of the reasons I purchased shares in Incitec was its production of fertilizer. I understand that a lack of gas supply at an economic price was a major reason for ceasing production. Would the Chairman outline the efforts that Incitec made to secure appropriate supply. Having halted production, can it ever realistically be resumed?

Okay. Thank you for that question. Look, I would point out that even with the Gibson Island closing, we still will be a very major producer and distributor of fertilizer. Certainly, I can guarantee that all efforts were made to secure an affordable gas supply over the past 15 months. This included a gas tender in June 2020 and also in August this year and direct one-on-one discussions with LNG exporters through October and November. Of those that did respond, many of the offers were roughly double the cost that we've been experiencing historically, so a very material increase in the gas costs. But I can assure you all efforts were made to find affordable gas, but it just wasn't possible. Just in relation to whether or not production can ever realistically be resumed? Obviously, as we said, we worked extremely hard to make sure when we made the decision to close it, we've done everything we possibly could. I think the thing to talk about in terms of production at Gibson Island, and Jeanne touched on the partnerships we're looking at with the likes of Fortescue Future Industries. We are looking at the potential for green hydrogen at Gibson Island with Fortescue and using that hydrogen to convert into green ammonia, and we'll know more about the likelihood of that happening over the next 12 to 24 months. Felicity, any other questions?

Chairman, we have a question from shareholder, Peter Aird, from the Australian Shareholders' Association representing retail shareholders. Today, I represent 43 shareholders holding 467,000 shares. Are you experiencing any issues in regard to employee retention, recruitment? What issues are raised?

Thanks for the question, Peter. Yes, look, we're not the only company, obviously, that's experiencing tight labor markets in a number of the regions that we operate in, and we are experiencing some higher level of turnover. The issues that it creates obviously depends on who the people are, but I'm confident that we've got the strategies in place to manage issues around whether that's operations, technical issues, professional issues. We do have a people-first strategy, and that is obviously around a number of issues. But clearly, one of the things that we're hoping that we'll deal with, will be managing the retention and attraction concerns. But I would point out, obviously, we get a lot of questions around compensation-related issues, but it's not just compensation that we need to be working on. It's more about -- it's as much about that as it is about the culture of the organization and how we're developing our people. So that people-first strategy really deals with a whole range of issues to help us not only retain but attract the best quality people that we can find for the company. Felicity, any additional questions?

Chairman, we have a question from shareholder, Peter Aird. We have a question from shareholder, Stephen Mayne. Did any of the 5 main proxy advisers in the Australian market: ACSI, ASA, Ownership Matters, Glass Lewis and ISS, recommend to vote against any of today's resolutions? Has there been a material proxy protest vote against any of today's resolutions? Will Incitec follow ASA guidelines and disclose the proxy votes before the debate?

Well, I'll have to look at that question back up on the screen because it was quite extensive. We just make sure we deal with all the points that Stephen has raised. Okay. So look, just in relation to the -- sorry, it's moved up again. Just in relation to the proxy advisers, the -- in terms of resolutions 1 to 5, all of the major proxy advisers were in favor of those resolutions and we had mixed responses in relation to 6A and 6B. So that's the short answer to that question. In terms of the proxy votes before the debate on today's resolutions, look, we -- our practice is typically, we will disclose the proxy votes after we've had the discussion on those particular resolutions and we don't intend to put the proxy votes up before the debate actually commences because we want to encourage an open debate. Felicity?

Chairman, we have a question from shareholder, Peter Aird, from the Australian Shareholders' Association. I note your Board Skills Matrix does not include reference to technology, and in particular digital technology, which seems critical to your explosives business strategy. Would you comment on how the Board assessed strategy for technologies and R&D spend?

Yes, Peter, it's a very good question. And as you point out, technology and including digital technology is absolutely critical to our business. Look, what I'd say is that the Board have a range of experience, both as executives and nonexecutive directors dealing with technology issues from a range of different industries, and I think that places us really well to be able to deal with and assess and challenge what we're doing on the technology front. We do obviously have a number of our executives that are very skilled in this area, and they do present on our technology strategy, our digital strategy to the Board on a regular basis so that we can assess and challenge how we're going on that front. But it is a very good question and it is as we -- both I think Jeanne and I talked about during our presentations, our reports, a focus on technology for us is critical to maintain a competitive advantage with the products that we're producing. Felicity?

Chairman. We have a question from shareholder, Peter Aird, from the Australian Shareholders' Association. You announced closure of Gibson Island manufacturing as you were unable to secure an economically-viable, long-term gas supply, what's happening with the gas supply joint venture with Central Petroleum, which announced a pilot expansion as recently as 24 August?

Thank you, Peter. I might ask Jeanne to deal with that question.

Yes. Peter, yes, we've continued our partnership with Central Petroleum, and we're still in the exploration phase of that tenement. And so it will be a number of months, probably closer to 0.5 year before we know about the future of the gas supply opportunities with Central Petroleum and the commerciality of that tenement. So it wasn't of the right timing nor size in order to meet Gibson Island manufacturing needs.

Chairman, we have a question from shareholder, Harriet Kater. With the announced closure of Gibson Island and associated reduced gas contracting requirements, will IPL formally abandon the Range Gas project it is pursuing with Central Petroleum?

Thank you for the question, Harriet. We do have other manufacturing operations on the eastern part of Australia, which still require gas supply. So the short answer to your question is, in order to make sure we manage the risk around gas supply for those major facilities going forward, we still continue to proceed with the Range Gas Project.

Chairman, we have a question from shareholder, Ronald James Guy. IPL states that it procures fertilizer from overseas manufacturers to meet domestic seasonal peaks. Does this include fertilizer from New Zealand: Ballance, Ravensdown, who have been ignoring the human rights abuse in Western Sahara?

Look, I think in terms of the issue around purchasing Western Sahara phosphate rock, since December 2016, IPL has sourced the majority and it's about 75% of our phosphate rock from Togo. Vietnam has supplied 20%, and China makes up the remaining 5%. In 2021, IPL source phosphate rock from Togo and Vietnam. We do, as I said, source the rock from multiple sources and it is dependent -- we are dependent on a secure supply of phosphate rock to support the Geelong manufacturing plant. We will continue to prioritize sourcing product from Togo, Vietnam and China as those sources -- from those sources of supply due to their location and the quality, which meets our needs.

If I could add to that.

Sure. Thanks, Jeanne.

Yes, if I could add to that, Brian. I can confirm that we have not been sourcing anything from Ballance nor Ravensdown for our fertilizer needs.

So no direct or indirectly?

No.

Thank you. Felicity, any additional questions?

Chairman, no further questions.

Okay. Thank you. I'll now take questions from shareholders over the telephone line.

Chair, There are no phone questions on this item of the business.

Okay. Thank you, operator. As there are no further questions, we'll move on to the next items of business. The next items of business are the election and reelection of directors. Today, we have Ms. Tonianne Dwyer standing for election and Mr. Bruce Brook standing for reelection. Resolution 2 relates to the election of Tonianne Dwyer as a Non-Executive Director. The notice of Annual General Meeting includes details of Tonianne's qualifications and experience. Tonianne has recorded a brief address to the meeting, which will now be played.

Thank you, Brian, and good morning, ladies and gentlemen. I'm honored to be seeking election to the Board of your company following my appointment as a Nonexecutive Director in May 2021. I'm excited to join the Board of a global company that is a leader in servicing the resources and agricultural sectors. And it's a privilege to work with a strong Board and a management team who are committed to delivering world-leading products, services and technology solutions to meet the needs of our customers. Being new to the Board, I thought it would be helpful to provide you with a brief summary of my relevant background and experience. During my 23-year executive career, I held senior management and executive roles in investment banking and real estate sectors where I gained valuable knowledge with regard to strategy, finance, mergers and acquisitions and capital projects. It's this experience that's provided me with an opportunity to develop a nonexecutive career in the mining, property and wholesale distribution industries and has allowed me to make a meaningful contribution to the success of the companies on whose boards I've sat. As set out in the Notice of Meeting, I'm currently a Non-Executive Director of the DEXUS Property Group, of ALS Limited and of OZ Minerals Limited. I'm also the Deputy Chancellor and a Senate member of the University of Queensland and a Director of the Sir John Monash Foundation. Being a Director of your company is both an honor and a considerable responsibility. With your support, I look forward to bringing my executive and nonexecutive director experience to our Board deliberations. And I welcome the opportunity to work with my fellow directors, the management team and the company's employees to continue to grow and develop this great company of yours. Thank you for your support for my election.

Thank you, Tonianne. The directors, other than Tonianne Dwyer, unanimously recommend that shareholders vote in favor of this resolution. I'll now take questions from shareholders who have sent in written questions. Felicity, are there any questions?

Chairman, we have a question from shareholder, Peter Aird, from the Australian Shareholders' Association. Ms. Dwyer seems to have a very heavy workload with 4 other ASX-listed company directorships. Her University of Queensland and Monash Foundation roles. Are you satisfied she has sufficient time available to fulfill her role with IPL? What skills do you believe are particularly valuable to IPL?

Thanks for the question, Peter. Look, I can confirm Tonianne has been a fantastic contributor. She is extremely diligent, very well prepared both for meetings -- for our Board meetings, for Committee meetings. And if we need to schedule catch-ups in between meetings, she's always available. So no concerns at all about Tonianne's ability to deal with the quantum of work that she has. As we mentioned earlier, she's a very experienced nonexecutive director. So she brings great experience from other companies that she's been involved in. Her executive experience in investment banking, funds management, corporate strategy is obviously extremely valuable for our Board. And she's adding a lot of value in areas generally around governance and risk, finance and I think on the people side as well. So I think, again, no problems at all with Tonianne's ability to contribute very, very strongly to our Board. Felicity, are there any more questions?

Chairman, no further questions.

Thank you, Felicity. I'll now take questions from shareholders over the telephone line.

Chair, there are no phone questions on this item of business.

Thank you, operator. As there are no further questions, I'll now put the resolution displayed on the screen to the meeting. Details of the proxies received on Tonianne Dwyer's election are shown on the screen. Please now record your vote on Resolution 2. [Voting]

I'll now move to Resolution 3, which is the reelection of Bruce Brook as a Non-Executive Director. The Notice of Meeting includes details of Bruce's qualifications and experience, and Bruce has also recorded a brief address to the meeting, which will now be played.

Thank you, Brian. Ladies and gentlemen, thank you for the opportunity to address you today as I seek your support for reelection to the Board of your company. Having now served as a Nonexecutive Director of your company for more than 3 years, I'm pleased with the company's continued progress, including our focus and commitment to Zero Harm and the safety of our people, customers and communities. The financial performance of our company is strong, and we are committed to exploring opportunities to help create a more sustainable world. Throughout my initial term as a director, I've worked with my colleagues to act in the best interest of your company as we seek to grow and further develop Incitec Pivot as a leading global supplier to the resource and agricultural sectors. I'm pleased with the progress that we've made during my initial term on the Board. And with your support, I look forward to continuing to work with my fellow directors, our executive team and our employees to secure the best outcomes for your company now and into the future. As illustrated in the notice of meeting, my career to date has provided me with the opportunity to gain experience in the mining, finance, manufacturing and chemical sectors in a variety of senior management, executive and nonexecutive roles across Australia, America, the U.K. and Africa. It is these experiences which I draw upon in my role as a director. And with your support, I look forward to continuing to provide a valuable contribution. I seek your endorsement for reelection as a Non-Executive Director, and I thank you for your continued support.

Thank you, Bruce. The directors other than Bruce Brook, unanimously recommend that shareholders vote in favor of this resolution. I'll now take questions from shareholders who have sent in written questions. Felicity, do we have any questions on this item?

Chairman, we have a question from shareholder, Stephen Mayne. Bruce has a strong CV, but the one major blot on his copybook was his stint on the Boart Longyear Board where shareholders lost well over $3 billion. Could Bruce please outline the lessons learned from the Boart Longyear disaster and why it was such a financial disaster?

So Stephen, thank you for the question. As you've said, Bruce does have a very, very strong CV. I'm not sure it's appropriate that we are commenting on issues at other companies during the Incitec Pivot Annual Meeting. But I can reassure you, though, that Bruce's contribution to our Board has been exceptional now over 4 years or so, and we've got full support for Bruce. But as I said, I don't think we should be discussing other companies' performance or issues at this meeting. Felicity, are there any more questions?

Chairman, no further questions.

Thank you. I'll now take questions from shareholders over the telephone line.

Chair, there are no phone questions for this item of business.

Okay. Thank you, operator. If there are no further questions, I'll now put the resolution displayed on the screen to the meeting. Details of the proxies received on Bruce Brook's reelection are shown on the screen. Please now record your vote on Resolution 3. [Voting]

Resolution 4 on the agenda today is the nonbinding advisory vote for the adoption of the Remuneration Report for the financial year ended 30 September, 2021. The Remuneration Report is contained in the Annual Report and is available on the company's website. It includes details of the company's policy on the remuneration of directors and executives, a discussion of the relationship between that policy and company performance and details of the performance conditions associated with the remuneration of the Managing Director and CEO and executives. The vote on this resolution is advisory only and does not bind the directors or the company. Although the Board will take discussion on this resolution into account when they're considering the future remuneration arrangements of the company. The directors recommend that shareholders vote in favor of this resolution. Before taking questions, Greg Robinson, as Chairman of the Remuneration Committee has recorded a brief address to the meeting, which will now be played.

Thank you, Brian. I appreciate the opportunity to share with shareholders the key features of the remuneration framework as set out in the company's 2021 Remuneration Report. The committee aims to ensure our remuneration framework aligns outcomes between our company values, strategy and performance with our employees' individual contributions. As described earlier, the 2021 financial year has delivered solid financial results for Incitec Pivot, and this has reflected in the remuneration outcomes for executives. Firstly, a brief description of Short Term Incentive outcomes for our key management personnel. After 2 years of no short-term incentive payments, the 2021 STI program generally resulted in payments of slightly above half of the maximum opportunity. This was driven by stretch headline net profit after tax results, a target result for Health Safety and Environment, and generally positive individual strategic metrics for each individual. The adjusted NPAT result did not reach threshold mainly due to lower production at our Waggaman plant as a result of production downtime following its first major shutdown. The STI result for the CEO was moderately lower than other executive KMP, primarily due to the influence of the lower Waggaman production result. Secondly, in relation to the long-term incentive program for the 3-year performance period that ended on 30 September 2021. There were 3 performance metrics included namely: total shareholder return, return on equity, and long-term value metrics. The performance overall was a low payout of 15%. In summary, there was no vesting of performance rights under the total shareholder return component. This is because the company delivered relative total shareholder returns below the median of the ASX100 companies during the performance period. There was no vesting of the performance rights relating to the return on equity component because the minimum level of return on equity was not achieved. There was, however, 50% vesting of the performance rights relating to the long-term value metrics component. Overall, this resulted in 15% of the granted performance rights vesting for this metric and also in total for the program. I will now move on to remuneration, short-term incentive and long-term incentive changes for the 2022 financial year. We continue to review our remuneration framework to ensure it supports our values and strategy to increase shareholder value and retain and motivate our key talent. The move to the new regional manufacturing model is likely to result in fixed remuneration adjustments to some executive KMP, who are taking on additional responsibilities for the 2022 financial year. These details will be reported in the 2022 Remuneration Report. We've also made some important adjustments to our LTI and STI programs with the introduction of an STI manufacturing reliability metric and both short and longer term focus on the reduction of greenhouse gas emissions. With the increasing practical and technological challenges to reduce greenhouse gas emissions, both in the short and longer term, the LTI for 2021 through to 2024 has a new 10% ESG component. This component will target Incitec Pivot achieving its 2025 and 2030 targets on climate change and focus on investing in new technologies to create other meaningful opportunities for the company to decrease greenhouse gas emissions in the longer term. Introducing the new 10% ESG component results in a reduction of weighting of the return on invested capital component from 40% to 35% and the long-term value metric from 20% to 15%. In relation to the 2022 STI program as a result of the move to a regional manufacturing model and manufacturing issues that we saw in 2021, an adjusted manufacturing reliability metric has been included in the STI for the CEO and Regional Presidents in North America and Asia Pacific. The 2022 STI objectives also have a greater focus on climate change objectives with a stand-alone ESG component included for all executive KMP. The 2022 ESG STI metric is predominantly focused on short-term actions to deliver on our greenhouse gas reduction targets and assessment of longer-term technical reduction technologies. These include the reduction of nitrous oxide in our nitric acid plants, emission improvements from our explosive and agricultural products, project assessment work on our joint venture green ammonia projects and carbon capture and storage opportunities for our ammonia plants. Turning now to our directors. The minimum shareholding requirement for nonexecutive directors is now in its second year of operation and is an initiative to better align director and shareholder interests. As of the 30th of September 2021, I'm pleased to report that all directors are in compliance with their minimum shareholding requirements. In terms of directors' fees, there will be no change for 2022, noting that the last increase in directors' fees was in October of 2014. Thank you for your time today, and I will now hand back to Brian.

Thank you, Greg. I'll now take questions from shareholders who have sent in written questions on the Remuneration Report. Felicity, are there any questions?

Chairman, there are no questions.

Okay. Thank you. So I'll now take questions from shareholders over the telephone line.

Chair, there are no phone questions for this item of business.

Thank you, operator. As there are no questions, I now put the resolution displayed on the screen to the meeting. Details of the proxies received on this resolution are now shown on the screen. Please record your vote on Resolution 4. [Voting]

Resolution 5 is the grant of performance rights under the company's long-term incentive plan for the Managing Director and CEO, Jeanne Johns. A summary of the proposed grant, including the performance criteria and measures for each performance condition, are set out in the notice of meeting. The number of rights being granted is 751,649. That's based on the calculation provided in the notice of meeting. Jeanne Johns, who has a personal interest in the subject of this resolution, has abstained from making a recommendation to shareholders on this resolution. The other directors unanimously recommend shareholders vote in favor of this resolution. I'll now take questions from shareholders who have sent in written questions. Felicity, are there any questions?

Chairman, we have a question from shareholder, Stephen Mayne. Given the interesting discussions across a range of topics today, including this LTI grant, could the Chair undertake to make an archived copy of the webcast plus a full transcript available on the company's website? Nine Entertainment, Chairman, Peter Costello, who appreciates the benefit of a parliamentary Hansard transcript where MPs don't have to scroll through all videos to find out what was said, recently made this change and had a full transcript of Nine's AGM online before the end of the day. Can we match this?

Stephen, thank you for the question. I don't think it's yet market practice to be putting full transcripts up on the company's website. There will be a copy of the webcast. But look, we'll take your question and your comment on board, and we will consider it. But I'm -- as I said, I'm not aware that placing the transcript on the company's website is market practice at the moment, but we will look at it. Felicity, any more questions?

Chairman, we have a question from shareholder, Stephen Mayne. When disclosing the outcome of all resolutions, including this LTI grant, will you publicly disclose how many shareholders voted for and against each item similar to what happens with the scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative recently adopted by Metcash, DEXUS and Altium after their AGMs. During COVID, shareholder voting participation has plunged below 1% at some companies. What is our figure?

Sorry. Stephen, just in relation to the shareholders that have voted against each item, it's actually not something that we've considered. Clearly, we do disclose the total outcomes, but we can consider looking at that, looking at whether or not we disclose how many shareholders voted for against each item. The shareholder sentiment, I think I've just been answered -- handed an answer to that. Yes. Look, I don't have -- sorry, Stephen, I don't have the -- the overall shareholder voting participation, I know is in the mid 70s. I don't have at hand the participation by our retail shareholders, but we will look to get that, and it is something we can think about disclosing in the future. Felicity, are there any more written questions?

Chairman, no further questions.

Thank you. So I'll now take questions from shareholders over the telephone line.

Chair, there are no phone questions for this item of business.

Thank you, operator. As there are no further questions, I'll put the resolution that is displayed on the screen to the meeting. Details of the proxies received for this resolution are shown on the screen. Please record your vote on Resolution 5. [Voting]

The final 2 resolutions for consideration at today's meeting have been requisitioned by a group of shareholders representing approximately 0.0036% of the shares on issue in the company. Resolution 6A seeks an amendment to the company's constitution, and Resolution 6B is a contingent advisory resolution that will only be put to the meeting if 75% or more of the votes cast on Resolution 6A are in favor. Your Board has carefully considered both of these resolutions. And for the reasons that I outlined earlier, the Board has recommended that shareholders vote against these resolutions. Consistent with IPL's approach to inviting shareholder debate and feedback, it is the Board's intention to allow a reasonable opportunity to take questions from shareholders on both Resolution 6A and 6B even if Resolution 6B is not ultimately put to the meeting. So I'll now take questions from shareholders who have sent in written questions on 6A and 6B. Felicity, are there any written questions?

Chairman, we have a question from shareholder, Stephen Mayne. Given that the Chairman has advised that some proxy advisers recommended a vote against the Board's recommendation on Item 6B, this suggests that there is some disquiet about our approach to emissions. If there has been a material protest vote of more than 15%, will the Board undertake to reconsider its approach and take on board the concerns expressed by shareholders? Once again, please disclose the proxies now so that the shareholders can ask follow-up questions if there has been a big protest vote.

Stephen, I'm not sure how you define a big protest vote, but certainly, there were a number of shareholders that did vote in favor of Resolution 6B, which we will talk about in a minute. Look, I think the general approach with anything climate-related is that we will listen to our stakeholders, and we will take on board the concerns that they have expressed. I do think we've made enormous progress in this area. Jeanne and I have both spoken at length about how we are approaching the challenges and the opportunities of climate change. I've personally spent and I know Jeanne has spent a lot of time talking with both proxy advisers and shareholders about this issue, and we do get sometimes consistent feedback on issues. Sometimes there is individual feedback. But we take it all on board, and those will be considered both in terms of what we're actually doing, but also in terms of what we're reporting in the future. And as I said, our intention at next year's AGM is that we will allow shareholders to have a say on our climate change reporting. Felicity, any additional written questions?

Chairman, we have a question from shareholder, Stephen Mayne. I've never understood why Australian Boards resist opinion-based resolutions when these are standard in the U.S. What is so wrong about a group of shareholders putting up a resolution that expresses an opinion? Climate campaigners are now getting around this restriction with the contingent resolutions model. So why not just embrace this constitutional amendment? You won't get deluged with resolutions because it will still have the significant obstacle of requiring support from 100 shareholders or 5% of the ordinary shares.

Again, Stephen, thank you for the question. And as I said earlier on, the Board did spend a lot of time considering both Resolution 6A and 6B. We did decide though, that as I mentioned earlier, we do provide our shareholders and our stakeholders multiple opportunities to engage with us and give us their feedback. So our view is that Resolution 6A is not necessary. Felicity, are there any further written questions?

Chairman, we have a question from shareholder, Harriet Kater. The IEA net zero scenario demonstrated that we can have no new gas projects if we are to reach net zero by 2050. Does IPL recognize that its commitment to the Range Gas Project conflicts with its long-term climate target?

Thank you for the question, Harriet. And again, I think we dealt with this to some extent earlier on when we were asked about that project, but I think it is recognized that gas will still form part of the energy that's required on the journey to net zero. We do have a particular challenge in our company with gas availability at affordable prices, and so we are continuing on with that project, and we don't believe it conflicts with our long-term climate target. We are still -- we still have that ambition, that goal of getting to net zero by 2050. Felicity?

Chairman, we have a question from shareholder, Ronald James Guy. Fortescue recently announced a change in Board to meet the growing demand for green steel and future environmental demands. Does IPL Board have the appropriate skill set to meet the environmental future demands? The IPL Board has not exactly been at the forefront of climate change mindset. Note that the EU and U.S.A. have indicated that imports in 2023 will need to have carbon offset or pay an import fee. Will this affect Australian production costing? I might have the terminology wrong.

Okay. Well, I might deal with the first element of that, and then I'll ask Jeanne to help out with the second piece. So look, in terms of the Board's skill set, I'm very comfortable with our -- the skill set that's on the Board. We have Jeanne, who's obviously a chemical engineer; George Biltz, who is a chemical engineer. The rest of us, that don't necessarily have that type of background, spend a lot of time having external people give us input on climate-related issues. And we have a very, very skilled management team in this area that we obviously rely on as well. So it's obviously a question we continue to ask ourselves to make sure that we are comfortable. We've got the skill set to assess the risk, the opportunities and again challenge management in this area. But at the moment, we're comfortable with where we sit on that. So Jeanne, I'll just ask you to deal with the second one if you're able?

Yes. I think the important thing here is that we have adopted a carbon price that we use internally as we evaluate our strategy and future investments, and so that carbon price is implicit in our going-forward strategy and our plans. I think our view is that it's important that the regulatory environment creates a level playing field for all producers of products, and we believe that our products will be and our plans will be competitive in such an environment.

Felicity, next question, please.

Chairman, we have a question from shareholder, Harriet Kater. You have mentioned that the carbon captured at the Waggaman ammonia facility will be permanently sequestered. Does that mean you are ruling out selling the CO2 to the oil and gas industry for use in enhanced oil recovery, which can have significant CO2 leakage?

Harriet, thank you for the question. I know Jeanne dealt a little bit with what we're doing at Waggaman during her report, but I'll ask her to deal with this specific question.

Yes. I mean thanks for the question. Our Waggaman ammonia facility currently does capture and use some of the carbon dioxide it produces on site through a melamine plant that puts it into a solid building material. The other carbon dioxide, we are looking to permanently sequester. We have a number of projects that are underway that we're looking at as to how to make sure it's permanently put into geological underground. None of the ones that we are looking at are in service of enhanced oil recovery and so, therefore, gives us the confidence that they will be permanently sequestered.

Thanks, Jeanne. Felicity?

Chairman, we have a question from a shareholder, Daniel Gocher. Incitec Pivot had said that it is investigating the abatement of nitrous oxide at its Moranbah and Louisiana Missouri plants. Can the Chair provide an estimate on the timing and costs of these upgrades?

Both of those opportunities are still being investigated, but they will both be contributing to the -- in particular, the short- and medium-term targets, so that should give you an idea of the potential time frames for the abatement projects at both Moranbah and in Missouri. In terms of the cost, look, that's still being investigated. What I can say is that it's not -- it won't be a material cost from an IPL perspective, so there will be no issues in terms of our ability to actually implement those abatement projects when we're ready to go with them. Felicity, any further written questions?

Chairman, no further questions.

Now I'll now take questions from shareholders over the telephone line.

Chair, there are no phone questions for this item of business.

Thank you, operator. As there are no further questions, I'll put the resolution that is displayed on the screen to the meeting. Details of the proxies received on Resolution 6A are now shown on the screen. Please record your vote on Resolution 6A. [Voting]

Details of the proxies received on Resolution 6B are now shown on the screen. As previously mentioned, Resolution 6B is a contingent advisory resolution. It will only be put to the meeting if 75% or more of the votes cast on Resolution 6A are in favor. Based on the proxies received, it's clear that Resolution 6A will not achieve the threshold of 75% votes in favor and, therefore, Resolution 6B will not be put to the meeting. Before we close the meeting, Felicity, are there any more written questions from shareholders?

Chairman, we have a question from shareholder, Ronald James Guy. September 29, 2021, EU Court annuls trade and fisheries deal with Morocco. They are illegal as they include Western Sahara territory. Australian farmers that use IPL fertilizer are now ethical. Should we be -- should we not be taking advantage of meeting ESG concerns on human rights with not using phosphate from WS? Consumers are becoming more concerned with ethical production. Farmers in New Zealand do not need this at the moment.

Ronald, thank you again for the question. And clearly, when we're looking at all of our sourcing, ethical sourcing is one of the areas that we're very focused on. I think specifically in relation to your questions around sourcing phosphate from Western Sahara, I did deal with that earlier pointing out that we have not sourced product from that location for many years. And currently, that's not our intention to do so. Felicity, any further questions?

Chairman, we have a question from shareholder, Ronald James Guy. Please explain your community investment framework? How is it decided, which is an appropriate NGO? For example, would Amnesty or Friends of the Earth, Union Aid Abroad be acceptable? A company I once worked for supported a worthwhile poverty housing initiative NGO, but it only operated in Christian communities. Are there any safeguards on selection criteria so that bias cannot stifle impartial global good?

A fairly detailed question there. I might ask Jeanne if she can deal with the response on that one.

Yes. Thanks for the question. I mean one of our core values is caring for our community, and we spend a lot of time encouraging our local operations to look at what needs their local community has and how IPL can help that. All of these are done under our sustainable community policy that's in line with that, and we encourage our employees to actively get engaged in doing good for the communities in which they work in. We review our collective contributions to the communities on an annual basis and report that to the Board. So if you look at the Sustainability Report, we have a number of examples that you can look at, that the kinds of local charities and other associations that we support.

Thanks, Jeanne. Felicity, any further questions?

Chairman, we have a question from shareholder, Daniel Gocher. Dyno Nobel remains a member of the World Coal Association. Immediately after COP 26, the CEO of the World Coal Association, Michelle Manook argued against the phaseout of thermal coal in electricity generation. Does Incitec Pivot agree with this advocacy? Why does IPL remain a member of the World Coal Association?

Daniel, thank you for the question. Look, we are members of a number of industry associations where we believe that membership provides value to our business, our investors and other stakeholders. There's a number of reasons we join various industry associations. We want to understand the views on issues that are affecting our industry. We want to have the ability to share our best practices and technical insights and, obviously, receive and understand what others are doing. We want to be able to contribute our perspectives and experiences in reviewing and developing effective industry standards and policies. So we do believe that it is important that we engage with industry associations, including the World Coal Association, in order to support a full debate. And we do acknowledge that there's a wide range of views within the membership of each of those organizations, and they may not always agree or fully align with our positions. But as I said, we think there are good reasons that we should remain members of relevant associations. We do continue to review those memberships though on a regular basis. Felicity, any further questions?

Chairman, we have a question from shareholder, Stephen Mayne. 43.7% is a massive vote against the Board on Item 6B. Will the commitment to have a nonbinding vote on climate policies at next year's AGM address shareholder concerns? Or are there other issues at play?

Stephen, thanks for the question. Look, it's fair to say, as I said earlier, that both Jeanne and myself and other executives from Incitec Pivot have been engaging very heavily on the subject of climate change, particularly since we released our climate change report in November. I think generally, I'd say we've got good support for a lot of the things that we're doing, but we did receive some feedback on a number of areas. And as I said earlier, we'll take that feedback on board whether that's around Paris-aligned targets, whether it's around disclosure issues or whatever, we'll take that feedback on board and certainly consider that when we are looking at what actions we're going to take and also how we'll report on what we're doing in the area of climate change. Felicity, any further questions?

Chairman, we have a question from shareholder, Daniel Gocher. If the cost of nitrous oxide abatement at Moranbah and Louisiana, Missouri plants is not material, why won't IPL upgrade those plants as soon as possible?

Look, I'll give you an answer, and then I'll ask Jeanne to make sure whether -- see if there's anything else to add, but the timing of these introduction of these abatement projects can be dependent on when we have major turnarounds at these facilities. And the sort of facilities we're talking about, turnaround typically occurs about once every 4 years. So that will be one of the key drivers of the timing of introducing those particular projects. Say, Jeanne, is that captured? Is there anything you want to add?

Yes, that does capture the main reason. But I will also say that we are progressing these quickly, but they do require quite a lot of engineering. While the technology is known, each plant is unique, and doing the engineering to make sure that they achieve the outcomes we all want, and the efficiencies of that nitrous oxide abatement takes evaluation of several different catalysts and configurations. So we are progressing those at pace, but they do ultimately need to line up with the turnarounds for installation as well.

Thank you. Felicity, are there any more questions?

Chairman, no further questions.

Thank you. Operator, are there any more questions on the telephone line?

Chair, there are no phone questions at this time.

Thank you. If there are no more questions, that now concludes all of the business for the AGM. I'd like to thank our Board, the executive leadership team and all of our employees for their ongoing commitment to Incitec Pivot. I also want to thank you for your attendance and participation today. I hope today has given you an opportunity to learn more about your company and its exciting future. At the conclusion of the meeting, a red bar with a countdown time will appear at the top of your screen, advising of the remaining voting time. If you've not submitted your votes, you should do so now. Voting will close 5 minutes after the closure of this meeting. The returning officer will count the votes and advise the Company Secretary of the poll results. The results of the poll will be notified to the market via the ASX and be available on the company's website as soon as they're finalized. I now declare this Annual General Meeting closed subject to the finalization of the poll. I want to wish you and your families a happy holiday season and all the best for 2022. Thank you.