EQT Holdings Limited (EQT) Earnings Call Transcript & Summary

Good morning, and thank you for joining us today for the investor presentation for the FY '26 full year results for EQT Holdings Limited. My name is Mick O'Brien. I'm the Managing Director of Equity Trustees, and I'm joined today by our CFO, Johanna Platt. We have 45 minutes scheduled this morning, and our agenda is that I'll provide a summary of the business' performance and an update on current activity across the organization. I'll then hand to Jo to take you through the financials in more detail. Then, I'll close with an update on our strategy and outlook, and we'll open for questions through the chat feature of the meeting at the end of all that. So FY '26 was a year of strong execution and important strategic progress for Equity Trustees. Our continuing businesses delivered excellent financial and operational outcomes. We achieved meaningful margin expansion, and we took decisive steps to simplify the group and sharpen our focus on our highest quality growth opportunities. Today, I'll walk you through those results, provide an update on our strategic priorities and discuss why we are entering FY '27 with strong momentum. Now, you'll notice here, I'm referring to continuing operations in the heading tag, and that's because throughout this presentation and in all the material we released to the market, we are showing continuing operations comprising of Trustee and Wealth Services and Corporate Trustee Services and supporting corporate functions, while discontinued operations comprise the Superannuation Trustee business that has been exited. Our standout feature of FY '26 was the strength of our continuing operations. The core continuing businesses across TWS and CTS continue to show excellent growth and improvement in margin. This performance reflects strong client acquisition, disciplined execution and the benefits flowing from investments we've made over recent years. We're now seeing those investments convert into operating leverage and improved profitability. This result also reflects the strength of our market positions and productivity gains achieved following the implementation of the NavOne platform in Trustee Wealth Services. The performance was driven by continued new business success, particularly in the health and personal injury business within TWS and the Responsible Entity services business within CTS. A significant strategic development during the year was the decision to exit the superannuation business. Within the discontinued superannuation business, expenses increased due to heightened regulatory activity and matters relating to the Shield and First Guardian Master Funds. These additional costs have weighed on the group's overall reported result for FY '26 and are reflected within the discontinued operations. Now, these results demonstrate the quality, resilience and growth potential of our continuing operations. We grew the funds under management administration and supervision by more than 15% to $191 billion, increased the revenue by 9.4% and delivered net profit after tax growth from continuing operations of 32.7%. Just as importantly, we achieved this while maintaining strong client momentum and continuing to invest in future growth initiatives. These outcomes were also driven by the full realization of benefits from recent transformation initiatives, which included the integration of the AET business. While the continuing business produced one of its strongest performances in recent years, the group's statutory result reflects the impact of discontinued superannuation operations and the associated impairment for that. The statutory result includes a $13.1 million noncash impairment associated with those assets held within the discontinued operation. As a result, the group net profit after tax decreased 20.5% to $26.4 million. Earnings per share for the year was $0.9864. After careful consideration, the Board determined a final dividend for FY '26 of $0.20 per share, resulting in full year dividends of $0.76 per share, which is a payout ratio of 77%. The dividend decision reflects the need to maintain financial flexibility as we manage the superannuation exit process, ongoing litigation associated with the Shield and First Guardian Master Funds and the potential sale of the business associated with the Superannuation Trustee business. I want to quickly just refocus the attention on which parts of the business are the future will be in continuing elements, the components classified as held for sale or discontinued. The slide shows that the overall structure of the business hasn't changed from previous periods with the key business units being Trustee Wealth Services, Corporate Trustee Services and Super Trustee Services. However, as mentioned, the decision to exit the Superannuation Trustee business has resulted in that business becoming discontinued. There's a small proportion of the revenue and funds that are currently allocated to that business, which will remain in the business post the exit. There are also a significant proportion of costs currently allocated to the superannuation business that will remain with us in the continuing operations. Now, this slide shows revenue and EBITDA margins over each of the last 4 years and includes the continuing and discontinuing operations. The impacts of interest and amortization from the Operational Risk Financial Reserve, or ORFR, in the super business and the impairment in that business, respectively, are excluded from this view to show the true picture. The revenue growth continues at pace with compound revenue growth over the last 3 years being 14% per annum. Margin has been impacted over time by the AET integration of the major projects in FY '24 and start of FY '25 has been impacted by the heightened regulatory activity in FY '26. Nevertheless, the margin increased from 30.6% to 33% in the year. Excluding the cost of Shield and First Guardian and regulated activity in discontinued operations, the FY '26 margin would have been 36% otherwise. The long-term outlook for TWS remains compelling. Australia is in the early stages of one of the largest intergenerational wealth transfers in its history and Equity Trustees remains uniquely positioned to support families and beneficiaries through that transition. The strength of our market position, combined with our specialist expertise and trusted brand, provides a significant platform for continued growth. This has led to a third year of significant revenue growth and a 3-year CAGR of 9.7%. This revenue in FY '23 is influenced by the AET integration occurring partway through that year. But even so, the growth since that point in time has been significant, especially for a business that has long-term sticky revenue. The acceleration of the timing to revenue recognition in Estate Management has helped the revenue growth in FY '26, along with the higher value of states being managed. Health and Personal Injury also continued to provide double-digit revenue growth of 12% and material growth in funds. There was loss of one Native Title community trust for approximately $250 million of funds late in FY '26, and this will have an impact on FY '27 revenue, although the new business pipeline remains strong across the various TWS business units. CTS continues to be one of the most attractive growth platforms within the group. Demand for independent trustee and governance services continues to increase as markets become larger, more complex and more heavily regulated. Our leadership position in this market continues to strengthen. New business, existing client net flows and market benefits have all contributed to the ongoing growth in revenue and funds under supervision in CTS over the last 3 years. Within FY '26, we've onboarded 104 new schemes and new custody appointments, including a further 9 listed schemes. Our expertise in listed schemes continues to grow, and we are the clear market leader in providing RE services or Responsible Entity services for listed schemes, both active ETFs, closed-ended managed investment schemes and as note trustee for listed notes. The split of market-related and nonmarket-related revenue is very important for this business because it can distort results due to the size of some of our accounts. Typically, nonmarket-related fee arrangements are at lower levels often because they may have -- they may involve directed roles or just the sheer scale of the funds. You can see the $26 billion in funds growth there. About half was attributable to market-related fee arrangements and half to nonmarket related. The pipelines remain strong for the start of FY '27. We measure success through more than financial outcomes. Sustainable growth requires engaged employees, satisfied clients, strong shareholder returns and meaningful community impact. Pleasingly, FY '26 delivered positive progress across each of these dimensions. We're seeing significant improvements in scores for client satisfaction and employee enablement. We believe this is further evidence of the success of our recent integration and technology projects and indicates that ongoing regulatory activity is not impacting satisfaction of our clients in this business. We're really pleased that the satisfaction score increased to 85%, and we're looking forward to driving that higher in FY '27. T2, our employee engagement result held steady at 72%, above the financial services benchmark, demonstrating the resilience of our most important asset, our people. Our community impact has accelerated in FY '26, up 23.6% to $210 million of charitable giving for the year, of which $140 million of that was philanthropic distributions. One of the most significant strategic decisions taken during FY '26 was the decision to exit the Superannuation Trustee Services business. This decision simplifies the group, sharpens management focus and increases our ability to deploy capital towards higher returning growth opportunities. We believe that this positions Equity Trustees for a stronger future. At this point in time, the expectation is that the exit will occur during FY '27 and will include the transfer of the HUB24 Super Fund trustee entity to HUB24 through the exercise of a call option by them, consideration of the options by Equity Trustees Superannuation Limited, ETSL, on the transition of the other funds under their trusteeship, including the fund promoted by the Future Group. At this point in time, the super funds transfer from ETSL trusteeship via a retirement and appointment process, the loans in place to facilitate the ORFR arrangements will be repayable by EQT Holdings. This amounts to $35.8 million across all those clients. We'll continue to update the market on our progress in exiting this business, which includes possible sale of a related servicing business. This slide is busy, my apologies. I'll step through the key messages on the slide. The Minister for Financial Services and the Assistant Treasurer made a speech to the National Press Club last week and with Treasury issued a statement regarding protecting consumers and the promise of superannuation in an evolving financial ecosystem. Firstly, can I say that we welcome the government measures and enhance confidence, transparency and consumer outcomes across the financial services system. These reforms are consistent with our focus on governance, accountability and protecting investors. Equity Trustees have been active in making submissions to Treasury and ASIC in relation to the reforms and all our submissions are available on our website. From our perspective, we believe there is also an opportunity to further strengthen the managed investment scheme framework through greater independence between responsible entities and investment managers. Recent market events, including Shield and First Guardian have reinforced the importance of clearly separated oversight and investment management functions. Independent governance remains a critical safeguard for investors and is a core feature of Equity Trustees operating model. We will continue to engage constructively with the government, regulators and industry participants as these proposals are developed and implemented. Now, turning to the Shield and First Guardian matters. While these matters continue through the court process, our focus remains clear. We will continue to meet our obligations as trustee, support regulatory processes and protect the interest of both members and shareholders. Equity Trustees Superannuation Limited continues to defend its position in relation to both those matters. We can inform the market that defenses have been lodged in respect of both proceedings and the matters will now progress through the court process. Based on information currently available, the estimated net investment losses to members are approximately $74 million for Shield and $70 million for First Guardian. These estimates relate to investor losses and should not be interpreted as any determination of liability, which remains subject to the court processes. We have also notified our professional indemnity insurers, the insurance claim related to Shield has been accepted while First Guardian claim remains under consideration by the insurers. Importantly, we remain focused on supporting regulatory processes, fulfilling our obligations as trustee and protecting the interest of members and shareholders while the legal proceedings continue. The Board has declared a final dividend for FY '26 of $0.20 per share, fully franked, taking the full year dividend to $0.76 per share. This represents a payout ratio of 77% of FY '26 group net profit after tax, which sits comfortably within the Board's stated target range of 70% to 90%. It's important to note that the payout ratio is calculated on statutory group net profit after tax and therefore, includes the impact of the $13.1 million noncash impairment recognized during FY '26. In determining the dividend, the Board considered both a significant improvement in earnings of the continuing operations and the group's capital position. At 30 June '26, the balance sheet remains stable with capital and solvency metrics continuing to support the current operations. While net profit after tax from continuing operations increased by 33% during the year, the Board has elected to retain a portion of earnings to maintain capital flexibility as we progress through the completion of the superannuation exit and while ongoing regulatory matters progress. This reflects a prudent and balanced approach to capital management during a period of transition. The Board's objective is to deliver attractive shareholder returns while ensuring the group retains sufficient financial flexibility to manage strategic priorities and regulatory developments. Overall, the dividend outcome demonstrates confidence in the underlying strength of the business, while recognizing the importance of preserving capital and maintaining balance sheet resilience at this stage of the group's evolution. Now let me hand over to Jo to take you through the financial results.

Good morning to everyone, and I'm pleased to present to you today the financial results for EQT for FY '26. Given the decision by the Board to exit the STS business, it is reported as held for sale and a discontinued operation. This page sets out how the business segments of the group are mapped in today's results compared to our legacy reporting. The group results on the left-hand side is presented on a business-as-usual basis and on the right-hand side is the split of the group between continuing and discontinuing operations. It's important to note that the financials of discontinued operations does not equal that of the STS segment. The difference being that portion of the STS segment that is considered continuing related mostly to allocated corporate overheads, which are retained. I will provide some further commentary on the TWS and CTS business units shortly. For now, highlighting their strong profit and margin performance. Focusing on the STS segment result, it was a net profit before tax loss of $12.7 million. This was due to the combined impact of approximately $6 million of adviser and legal costs to support regulatory and litigation activity and the $13.1 million impairment of goodwill. The discontinued operation is that portion of the STS segment revenue and costs that will be exited. This equates to the trustee revenue and ORFR income relating to the trustee appointments of HUB24 and ETSL. A minor portion of STS segment revenue and expense will be retained. Retained revenue is circa $3.7 million, representing a share of interest income generated from capital held in cash for the group and an investment mandate attributable to a current STS client. Retained expenses totaled $12.4 million and are made up of corporate overheads that are currently attributed to the STS business, including corporate functions such as risk, finance and people and corporate technology costs as well as a portion of shared people costs in the CSTS organization. There is an expectation that the total level of spend on corporate overheads will be reduced in future years with the main benefits starting to be realized in FY '28. Upon the exit of the STS business, the retained costs formerly allocated to CSTS will be shared across TWS and CTS. Turning to the group results. This page sets out the summary P&L based on continuing operations, noting that the FY '25 result has also been restated on the same basis. Continuing operations have delivered strong results with FUMAS revenue before tax profit and percentage margins all increasing over prior year. As Mick has mentioned, group NPAT was down versus prior year due to the impact of the discontinued STS business. Revenue for continued operations for FY '26 grew $14.3 million or 9.4% to reach $167 million. This growth was delivered by both business units, TWS and CTS, contributing an additional $7.8 million and $6.5 million of revenue, respectively. Total expenses from continuing operations increased by 1% over prior comparable period, noting that $4.9 million of nonoperating expenses were incurred in FY '25 as part of the completion of the AET integration and technology transformation projects. On both the total expense and operating expense basis, the group achieved a positive jaws result. Notable changes in operating expenses are a $2.1 million reduction in employee costs due to a reduction in headcount that occurred in TWS in November '25 and reduced incentive costs. This was offset by increased legal and consulting fees of circa $6.5 million due to $3.9 million of net costs incurred relating to the Shield and First Guardian matters and $2.6 million of regulatory notice activity. Net profit before tax is $49.9 million, a 35.8% increase in margins and margins were at 29.9%, inclusive of the stranded costs of STS. NPAT adjustments relating to the discontinued STS business was a loss of $7.5 million, inclusive of the $13.1 million impairment of goodwill. Turning to the group performance of the business half-over-half. Whilst revenue was more modest growth half-over-half at 1.4%, this was due to the elevated result of revenue for TWS in the first half, where one of the Estate Management and Health and Personal Injury revenue events occurred. Importantly, CTS revenue continued to deliver strong growth due to both organic and new business. Expenses were broadly flat between the halves. This was a result of a decrease in people expenses due to a lower employee incentive provision, offset by increased consulting and legal fees relating to Shield and First Guardian and an increase in a provision for TWS client rectification costs, which we are confident will be partially recovered in FY '27. Importantly, profit margins for the continuing operations were maintained at 30% half-over-half. NPAT declined by $15 million half-over-half due to the increased level of adviser spend previously mentioned and the impact of the goodwill impairment charge. This waterfall sets out the continuing operations expenses year-over-year. The FY '25 expense base was $115.9 million, which includes the $4.9 million of nonoperating expenses incurred in the closing phase of AET integration and business transformation. The group incurred net costs of $3.9 million of legal and adviser fees relating to Shield and First Guardian. $2.3 million of consulting fees were incurred in CTS to support uplift in regulatory oversight and additional and compliance and regulatory notice activity. There was an increase of $1.1 million in people cost in CTS as we invest in additional employee headcount and expertise to support this fast-growing business. TWS incurred increased costs relating to the $1.5 million client recompense matter I referred to earlier, which we expect will be partially recovered in FY '27. Importantly, the TWS cost base, excluding that matter, reduced by $2.9 million, recognizing the benefit of the employee count reduction that was achieved in November '25. The lower incentive costs are documented in the remuneration report and reflect a 40% pool and the decision by the MD to forego an STI. Turning to our employee count and our investing for future growth. This chart sets out our headcount performance or changes over the financial year. Total employee headcount has increased by 27 to reach 487 at 30th of June '26. Additional resources have been focused to support our fast-growing CTS business. Post the completion of the integration of the AET results, AET in November '25, the TWS business has held employee headcount flat with some minor changes of roles to support the growing Health and Personal Injury business. As I mentioned, our growth has been focused in the CTS business, where employee count increased by 21. We also increased our resourcing in our enterprise risk team by around 4 headcount. The STS business has 41 staff dedicated to service delivery. I'll turn now to TWS performance. We have called out the above-trend revenue growth of the business due to a $2.5 million notable event driven by appointments in Estate Management and Health and Personal Injury. In addition, improvements in the process and cycle time to reach probate and the associated revenue recognition milestone delivered a onetime $2 million uplift in revenue for the year. Other revenue increased by $3.4 million due to growth in charitable and personal and community trust and philanthropy. Operating expenses increased by 0.8%. People costs actually decreased by $1.9 million over the prior year due to the reduction in headcount experienced in November '25. This was offset by the $1.5 million increase in client rectification provisions relating to a matter which we believe will be resolved in FY '27. Margins improved materially to reach 33.3% as the business realized the benefits of an integrated operating model and single technology platforms. Turning to CTS performance. CTS was driven by -- performance was driven by top line growth of 13.8%, driven both by the strongly dominant RE business, which delivered $7.4 million of new business, offset by $1.9 million reduction from terminated appointments. The fast-growing but small service line of custody and real assets contributed $1.5 million of additional revenue in the year. Operating expenses increased by 12.8% due to additional consulting and advisory fees incurred to mobilize our transformation program and to address additional regulatory notice activity. People costs increased by $1.1 million due to the impact of additional employees previously discussed. Turning to the group cash flow. Group cash increased by $13.4 million over the year to reach $159.9 million at the close. However, it's important to note there were material movements relating to ORFR cash, which I'll now talk through. The group after-tax operating cash flow was $54.9 million, an increase of $14.6 million over prior year due to the impact of increased receipts and revenue growth, lower tax payments due to the offsetting of capital losses from the exited U.K. business. Investing cash flow of $6.3 million was driven by interest income, offset by minor CapEx. Financing cash flow of nearly $30 million was driven by a $30 million outflow of dividend payments and the receipt of $77 million of ORFR cash relating to HUB24 and its dedicated RSEL entity, HTFS. As HUB24 has exercised the call option of this entity, the ORFR capital is now classified as an asset held for sale and excluded in the year-end cash result of the group. At 30 June, the cash balance provides coverage over regulatory cash requirements of the group's AFSL entities, and this totaled $92.6 million. $39.7 million of cash is held in ETSL as part of its ORFR cash reserves. This results in $27.6 million of available cash to the group. The group has 2 short-term sources of liquidity being a $10 million investment in an EQT Mortgage Income Fund and an additional $18 million of debt headroom with ANZ. We note that there are potential proceeds from the exit of the STS business, and that will contribute additional liquidity to the group. As Mick mentioned, the group is prioritizing building capital flexibility, balancing our confidence in the underlying strength of the business while recognizing the importance of preserving capital and flexibility at this stage of the group's evolution. The capital requirements to support the exit of STS is a priority for FY '27. As Mick mentioned, the exit of the ETSL trustee appointments will trigger repayment by EQT Holdings of $35.8 million of loan facilities undertaken to support the ORFR capital requirements of its subsidiary, ETSL. We continue to engage with prospective third parties regarding the potential sale of the business. And as Mick mentioned, we expect the transition and the exit to be completed by the end of FY '27. As these transitions occur, we will continue to assess the group liquidity management options, taking into account regulatory capital requirements and the timing of capital releases associated with the business exit. Regulatory capital to support our AFSL entities is another key priority area for the group. As CTS continues to expand, we expect regulatory capital requirements to grow accordingly. We will be undertaking a pricing review of CTS in order to optimize return on investment on this regulatory capital. More broadly, we continue to evaluate opportunities to enhance capital flexibility and funding capacity, including refinancing options where appropriate. Overall, the focus remains on maintaining a strong balance sheet, supporting profitable growth and preserving flexibility as the business transitions through this period of change. The Board will continue to monitor the group's dividend capacity over this time. I will now hand over back to Mick to focus upon our future strategy and outlook.

Thanks very much, Jo. Looking ahead, we believe Equity Trustees is exceptionally well positioned. We operate in markets supported by powerful structural tailwinds, have leadership positions across our core businesses, generate highly recurring revenue streams and continue to benefit from growing demand for independent governance and trustee services. Importantly, we now have a clear strategic focus, a stronger operating platform and significant opportunities to leverage technology and AI across the business. The tailwinds of increasing intergenerational wealth transfer estimated to be between $3.5 trillion to $5.3 trillion over the next 20 years and the mandated growth in superannuation is driving demand for an increasing range of investment schemes. The enduring income profile of our business is attractive. Trustee appointments are generally long term in nature with considerable certainty and revenue is positively correlated to market movements. Our highly experienced team is now refocusing on doubling down on the continuing operations, and they're supported by a talented and engaged team. Looking ahead to FY '27, our focus is on executing against a clear set of strategic priorities while maintaining the financial and operational discipline that's underpinning the business' performance. We'll continue to leverage our market-leading positions and in particular, in corporate trustee services where the market, regulatory and industry dynamics continue to support long-term growth. The second key priority is digital transformation. We're looking forward to the design and deployment of digital solutions that improve the client experience, enhance risk management, automate manual processes and drive greater operational leverage across the group. Importantly, our digital focus will expand further into the estate planning and estate management businesses during FY '27, where we see opportunities to improve client outcomes, increase efficiency and support scalable growth. We've also got a number of important deliverables associated with the superannuation exit. This includes continuing to manage Shield and First Guardian matters ensuring the orderly and successful execution of the exit program. Our priority is to achieve a smooth transition for all stakeholders, while maintaining strong governance and operational oversight throughout that process. As Jo outlined earlier, capital management will remain a key focus. We're committed to maintaining balance sheet strength and capital flexibility as we progress the exit and support the growth of our core businesses. The ongoing management of Shield and First Guardian litigation remains an important priority. Equity Trustees Superannuation Limited will continue to defend its position, engage constructively with the legal and regulatory processes and ensure the matters are managed appropriately while remaining focused on servicing clients. Overall, FY '27 will be a year focused on growth, execution and transition, positioning Equity Trustees for its next stage of development. Together, these initiatives are designed to deliver sustainable earnings growth, strong operating leverage and enhanced shareholder value over the medium term. So we enter the year with confidence. Our continuing businesses have strong momentum, attractive market positions and healthy pipelines. The benefits of recent transformation initiatives are continuing to emerge, while the planned exit of superannuation is expected to further simplify the group and sharpen our strategic focus. It's important to recognize our expectations assume broadly normal investment market conditions, no material deterioration in sentiment for our services and our continued ability to successfully navigate changes in the regulatory environment. Subject to those assumptions, we expect strong momentum in the continuing businesses through FY '27. In TWS and CTS, the underlying drivers of growth remain favorable, continue to benefit from strong market positions and growing demand for those services and a robust pipeline of opportunities across both businesses. A key milestone will be the completion of the exit of the superannuation business, marks the final stage of a significant transition that will allow management capital to be increasingly focused on our core growth businesses. At the same time, we'll continue investing for growth. We expect approximately $5 million of transformation-related investment during the year focused on CTS, operational capability, digitized risk monitoring, enhanced digital customer experiences and strengthening risk and governance resources across the group. We see these investments as important enablers for future scale, efficiency and client service, while supporting the increasingly complex regulatory environment in which we operate. While the superannuation exit simplifies the business, we expect to continue incurring costs associated with the litigation matters during FY '27 as those proceedings progress. So FY '27 will be a defining year for Equity Trustees evolution. As we complete the exit, continue investing in our growth platforms and leverage the strength of our market positions, we believe the group is increasingly well placed to deliver sustainable long-term value for clients, employees and shareholders. We have a clear strategy, strong momentum and exciting future ahead. So thank you. And I'm now happy to open up for questions and if people can use the chat function in the meeting. If you can ask us any questions.

So the first one we have is, can you talk through the organic growth in TWS and CTS RE client wins? Sure. Perhaps I'll take that, Jo. We continue to see that our position in Trustee Wealth Services, particularly in the health and personal injury sector, but also all previous estate planning that we've done and the wills that we have in our will bank generating significant wins in estate management and also other testamentary trust. So there's been no change in momentum in that business in the last couple of years. And the acquisition of AET some 3 years ago has just strengthened our position in all the estate services business. In CTS, the growth is coming really from 2 areas. It's RE appointments for schemes, and it's also custody appointments. Custody has been a smaller business for us that we didn't have a strong position in if you go back a number of years, but it's had really strong growth, as Jo pointed out, in those numbers. And often, those appointments go hand in hand. We don't want to do custody of large transaction heavy type portfolios, but any other types of arrangements we're very capable and comfortable to do, and that's providing significant growth. The next question is in relation to the takeover proposals from TPG and BGH, are these indicative proposals predicted -- predicated on retaining the superannuation business? Do the proposals assume the acquirer will take over potential liabilities in relation to Shield and First Guardian? Well, both the proposals are indicative nonbinding proposals and they are cognizant of the fact that we are exiting the superannuation business. They do basically take account that there will be potential liabilities in relation to Shield and First Guardian and they are covered in the proposals.

We've mentioned before that our exit plans for STS assume that we retain the ETSL entity and therefore, carriage of the litigation risk.

Thanks, Jo. Next question is, what's the longer-term plan on the stranded costs of $11 million to $12 million? What can this come down to? Why was this so high? Does this imply proportion of corporate overhead allocation in Trustee Wealth Services and Corporate Trustee Services? Jo, do you want to have a go at that?

Yes. Not quite sure the last part of the question. In terms of our allocation methodology like many corporates, we do a high-level scoping of time and proportionately split across our 3 segments. We will post the exit of STS, be doing a review of our corporate functions to understand what costs can be reduced. We would hope to have some further comments during FY '27 on that matter. As I mentioned, the costs that the $12 million will be reallocated to TWS and CTS post the exit of STS.

Thanks, Jo. Next question is a little technical question. Why has the Trustee Wealth Services funds changed almost every half year for the last 2 years? At first half, it was $18 billion, now $16.9 billion.

Yes. I think we've had to restate this one a couple of times. Part of the little bugs we've had in terms of transitioning to the NavOne platform and change of reporting hierarchies. Happy to clarify that at a further update.

Next question is, what are the key moving parts to think about on the continuing business profit of $33 million? You mentioned $5 million in CTS costs. Does the $33 million embed the stranded costs of the superannuation business? Are underlying TWS and CTS costs expected to grow alongside the higher governance uplift costs? Do you want to have a go at that, Jo?

Yes, happy to. So to confirm, the $33 million net profit before tax for continuing business includes the stranded costs for the STS business of $12.5 million that was referred to earlier. There's not really a concept of underlying costs. So the operating costs for TWS and CTS continue. We think margins can be maintained in those businesses with the top line growth, particularly in CTS. And to note your comment that, yes, there is -- we've called out an uplift of around $5 million to support a CTS transformation and uplift in our enterprise risk resourcing.