Fisher & Paykel Healthcare Corporation Limited (FPH) Earnings Call Transcript & Summary

All right. Good afternoon, everyone. I'm Neville Mitchell, the Chair of Fisher & Parker Healthcare Board. Welcome to the 2026 Annual Shareholders Meeting. A warm welcome to all of you here in person at our East Tamaki campus and those online. So to start a few housekeeping items, bathrooms are located outside this meeting room to my left. In the event of a fire alarm, please follow the Fisher & Paykel team who are wearing Lanyards to the assembly area in the car park ahead of me. On the information conveyed to me, I declare that a quorum of shareholders is present, and the meeting has been duly convened. I would firstly like to introduce those joining us on stage today. We have our Managing Director and CEO, Lewis Gradon; our Directors, Anna Curzon; Sir Mike Daniell, Lisa McIntyre, Graham McLean and Cather Simpson; and our future Director, Margie Apa. Mark Cross is not well enough to be with us today in person. The flu is taking them down, but is joining us virtually. The minutes of the last Annual Shareholders' Meeting have been approved by the directors and are available for inspection at the back of the room. The notice of meeting has been circulated to all shareholders, and I intend to take it as read. First on the agenda is the Chair's address, in which I will provide some comments on the company's progress on behalf of the Board. Following that, our Managing Director, CEO, Lewis Gradon, will provide an update on your performance in the last financial year and in the year-to-date and on our opportunities looking forward. After addressing any questions on the financial statements, we'll move to the formal resolutions. I'll now move to the Chair's address. Ladies and gentlemen, it is a privilege to address you again as Chair of your Board. In my address today, I will share the Board's perspective on the company's progress and long-term priorities. Lewis will then provide more detail on our financial and operational performance. Fisher & Parcel is guided by a unifying purpose improving care and outcomes of patients. One measure of that success is the number of patients who benefit from our products and therapies. Last year, this number was approximately 24 million people worldwide. It was another strong year financially. For the 2026 financial year, operating revenue increased to $2.3 billion. Net profit after tax increased to $468 million, and the Board approved dividends of $0.52 a share. These outcomes reflect the strength of a business that has been built over decades across products, therapies, geographies and markets. In this industry, long-term value is created by continuing to improve products, expand clinical understanding and identify new ways to support patients and clinicians. Our shareholders will be familiar with our strong commitment to research and development. In the 2026 financial year, the company invested over $235 million in R&D. And over the last 5 years, approximately $1.5 billion. All of that practically here in New Zealand. This level of investment is critical to sustaining innovation, expanding our clinical impact and ensuring a strong pipeline of future products. Product innovation requires talented people, specialized equipment and spaces for collaboration, development and testing. Here at East Tamaki campus, you will see that work has progressed on our fifth building. The new facility will provide additional space for product development, manufacturing and warehousing and is on track to open around the middle of 2027. As a Board, we remain disciplined in our approach to major capital investments. You will recall that we have purchased land to develop a second New Zealand campus in Karaka and we continue to see this as an attractive location. We also see opportunities for growth beyond New Zealand as directors spending time in the regions where we operate is an important part of our oversight responsibility. And last year, the Board visited our operations in China. We gained a deeper understanding of one of the world's fastest-growing health care markets and engaged directly with key people over them. Over the next year, we'll be looking to expand our manufacturing footprint in China to complement our ongoing investment here in New Zealand as well as Mexico and other regions. As the company continues to grow, maintaining our culture globally becomes increasingly important. The people of Fisher & Paykel care deeply about patients as well as their coworkers. They have a relentless desire to improve value original thinking, approach their work with humility and work together for the greater good. We believe the culture remains one of the company's greatest strengths and an important contributor to long-term performance. Your Board recognizes this and continues to monitor our progress. I would now like to cover a few other matters that have received attention from the Board this year. First, the topic of sustainable procurement and addressing modern slavery risks. This year, New Zealand introduced a modern slavery bill into parliament that will create a regulatory framework requiring large organizations to identify address and report on modern slavery risks within their operations and supply chains. We believe companies have a responsibility to understand the conditions under which their products are made and sourced. And we have robust processes in place to guide procurement decisions. As part of our belief in doing the right thing, we work with our suppliers to raise awareness about modern slavery risks and support them to address this issue. We already report under the Australian, British and Canadian legislation on this matter. Second, an update on the composition of the Board. Last year, we farwelled Pip Greenwood, and Anna Curzon was appointed to the Board in February. Anna has brought a wealth of knowledge in the technology and financial services industry to the Board. She is up for election today, and we'll speak to you later in the agenda. And I would urge you to support that resolution when it comes up. We continue to support the Future Directors program, and we're fortunate to have Margie Apa as our future Director for this term. You may really be familiar with Margie as she is the former CEO of Health in New Zealand. Third, ahead of the vote today, I would like to say a few words on nonexecutive director remuneration. As shareholders would expect attracting and retaining high-caliber directors is important for effective governance. The board periodically reviews nonexecutive director remuneration with the assistance of external advisers to ensure it remains appropriate for the responsibilities involved and competitive with comparable organizations. This year, we have recommended changes to the director remuneration, and these are outlined in explanatory Note 3 of the notice of meeting. In closing, I would like to return to a theme I discussed last year, namely long-term thinking. We are operating in a world that is increasingly complex. Fisher & Paykel operates in over 120 different countries. So world events are very important to us. Supply chains remain exposed to disruption health care systems are under pressure. Geopolitics, trade policies and tariffs have continued to be important considerations. We do not underestimate these challenges. They require careful oversight and steady decision-making. We've continued to follow these issues closely and have met with experts in New Zealand and overseas to navigate them. And in this regard, we'd like to acknowledge MFAT, the New Zealand MPAT, and the advice that they provide us, which has been very valuable. We cannot control external events, but we can maintain our long-term view. This guides our decisions. The company's success does not rest on a single year's performance. addressed on a consistent strategy, innovative products, a strong culture and trust earned over many years. Those are the foundations the Board is focused on protecting and strengthening. On behalf of the Board, thank you to all of our people, our customers, our suppliers and you, the shareholders, for your continued support. I'd now invite Lewis to say a few words.

Thank you, Neville. So good afternoon, everyone. Welcome. I want to say that we really, really do appreciate the attendance that we get at these meetings. So thank you very much for coming along. So I'm going to cover off some financial and operational highlights for FY '26, and then I'll move on to our guidance for the first half and full year FY '27. But first of all, I do want to recognize the efforts of our 8,000 people. They're across 55 countries. Our customers, our suppliers and especially our clinical partners. And I'm going to open with a video that I hope gives you some insight into how our people think about our clinical partners and about those patients that we jointly serve. [Presentation]

Thanks, guys. So look, as Neville said, that was 24 million patients treated with our products last year. And I want to thank everyone that's contributed to that effort. So now we just have a quick look at the financial results from 2026 financial year. We generated $2.3 billion in revenue and constant currency terms. So constant currency is where we take out all of the foreign currency effects. So you can see kind of the underlying growth without currency distorting it. So in constant currency terms, that's 12% and growth. And in particular, we've called out hospital hardware at 27% as strong across all regions and giving us great momentum for our FY '27 year coming forward. Now during FY '26, we dealt with some costs due to trade policies and world events, but momentum from those thousands and thousands of continuous improvement projects helped us cope with the tariff costs and with the freight and raw material cost increases we've seen during the year due to the middle conflict, and we're able to generate an improvement of 122 basis points in gross margin. also constant currency to a gross margin of 63.7%. And then net profit after tax of $468.5 million, up 28% in constant currency terms. So great result. Now I want to put those numbers in the context of the 10-year trends. In the 10-year trend, you can -- if you look at revenue on the left-hand side, you can pretty clearly see COVID starting to kick in, in FY '20. It was right at the end of our FY '20 and then the COVID effect in FY '21 and '22. And probably in revenue, it's so we're back on our pre covered track probably for the last 3 or 4 years. And then when we go over to the net profit after tax data, you can -- again, you can see the COVID effect on FY '20, you can see the effect in '21 and '22, but that's an unsustainable workload for our people and our equipment generating that kind of result. So during that FY '21, '22, yes, we're putting in the extra infrastructure, the extra equipment, the extra people to cope with those COVID volumes. And you can see the impact on our net profit after tax in FY '23 and '24 here. And then it looks like over the last 2 years, we're back on that momentum to take our gross margin back to where we'd like to be, 65% target. And net profit after tax back to where we'd like to be as well. I just want to touch on dividends very, very quickly. As Neville said, we increased our second half dividend by 38% to $0.52 per share for the year, and that's up 22% on last year. That's a payout ratio of 65% of our FY '26 net profit after tax. And we think that is roughly more or less a sustainable rate for us in terms of payout ratio. If you look over the last 10 years, you can see we've been very consistent with our dividend payout, and we've been very consistently growing our dividend payout. In fact, that's a 12% compound annual growth rate over the 10 years. So for investors, it's a relatively unusual combination where you have a growth company with steady and increasing dividend payouts for you to consider. Now before I move on to outlook, I just want to talk to the comments that we included. So we manufacture in New Zealand, Mexico and now China. In our FY '26 year, we had U.S. tariffs applied to some of our hospital products that go from New Zealand to the United States. During the year, the mechanism under which those tariffs were applied and the rates changed. And one of those mechanisms was overturned by the U.S. Supreme Court. So we're getting a refund for those tariffs that we paid. We're getting the refund in FY '27 for some of the tariffs that we paid in FY '26. So we called that out. And in our press release last week, that's the $23 million tax refund that we called out. And then just to be clear, we continue to pay tariffs in the U.S. on some of our hospital products sourced from New Zealand, but it's a different mechanism. Now there's also a U.S. federal agency currently investigating the impact that medical supplies might have on national security in the U.S. So those tariff rates might change during the year. Also, the Middle East conflict impacts our freight and material costs during this year as well. Now you might be inclined to think of these as unusually difficult times. I think for us as a global manufacturer with raw materials coming from all over the world to 3 different manufacturing sites, a global supply chain to customers in 120 countries, we always have something every year that's causing our disturbance or causing our cost to go up. And this is, I think, for us so far, almost like business as usual. There's cost in, and that's certainly how we're thinking of it. And the way we deal with cost in is just those continuous improvement projects over and over and over and efficiencies across the whole business. Now over the longer term, of course, just to remind you of our thinking there over the longer term, we can adjust our global manufacturing footprint to reduce the overall supply chain risk as we grow. So now on to the first half outlook. So we gave guidance for the first half of -- revenue guidance of approximately $1.24 billion and net profit after tax of approximately $280 million. So at the top line, at the revenue line, that equates to 14% growth in revenue. And if you take out the impact of the tariffs that are in that net profit after tax guidance, that's a 24% NPAT growth, not counting the tariff refund. And then moving on to the full year. So after that predicted strong start, we increased our full year guidance of EBIT up to operating revenue in the range of about $2.47 billion to $2.57 billion, and net profit after tax in the range of approximately $525 million to $565 million. Now I'll just make one thing I hope really, really clear. In that guidance, we've assumed that the tariffs stay where they are and the increased raw materials and freight costs from Middle East conflict stay where they are, and that's an assumption, so we can derive the numbers. It's not a forecast. That's what's going to occur, so to make that clear. And even with those costs, we're still anticipating increasing our gross margin for the full year. Now the momentum of R&D projects that started 10 and 20 years ago, trusted customer relationships that span decades, continuous improvements by the thousands year after year supplier partnerships that we've had for decades. That's the momentum that's generated the result we've seen for FY '26. But we also continue to build momentum for the future. So if you look over the last 5 years, if you look at people and research and development, they've increased 42% to nearly 1,000 people. If we look at patents in the United States over the 5 years, that's doubled to 768 patents in the United States. Now we call out 1 country there, so that you can see that those are distinct inventions. It's not just a couple of patents and lots and lots of countries. Our global patent portfolio granted patents is over 4,500. But anyway, if you put together the increase in R&D people, the granted patents doubling over the 5 years, we think that's a really good pointer that we continue to build momentum in that pipeline for products and therapies that are going to be unique to Fisher & Paykel and generate improvements in caring outcomes. So now if we have a look at sales, salespeople increasing by 27% over the 5 years to over 1,500. And clinical practice guidelines for nasal high flow, that's increased from 5 to 12 clinical practice guidelines around the world for the use of nasal high flow. That increase takes account of 3,200 cumulative published studies over the 5 years to generate more clinical practice guidelines. So when you put that together, we think that tells us we've got momentum continuing to grow to help us change clinical practice. And the next one there, if you look at anesthesia, so the number of professional bodies around the world that have a guideline in anesthesia for nasal high flow, over the 5 years, that's gone from 10 professional bodies to 25. So we think that points to momentum to change clinical practice. It's building over multiple therapies and that points to is something that can persist for a very long time yet. And then cumulative hospital hardware sales of over $880 million for the 5 years, that tells us that we do have momentum in that installed base and that clinical practice is indeed changing. And if we look at gross margin, I touched on this a few slides ago. But if you look at gross margin, you can see the COVID impact there in FY -- well, '22 and '23 really. And you can see the momentum of those continuous improvements, moving gross margin back to where we'd like it to be. So look, finally, for me, if we look at our history as a listed company, we've gone from generating a bit less than $200 million in revenue in 2001 to $2.3 billion this year. And this is not common growth, and it's not something we take for granted. And for us now, it's a matter of continuing to build on that momentum. And momentum is not about the financial performance in 1 year. It's not about a single problem, a single obstacle, a single issue in 1 year. It's about continuing to make progress. Main things that's not me, is it? Okay. So momentum, it's about continuing to make progress in how we improve care and outcomes for patients. That's the big one for us. And how we can remain as that trusted clinical partner whatever challenges arise for us or for our customers. So in closing, I want to acknowledge the people of Fish & Pike Healthcare for their commitment to stepping up to those challenges. And of course, I also want to thank our clinical partners, our customers, our suppliers and here, our shareholders, for your support and belief in this approach. Thank you very much.

Thank you, Lewis. Item #3 on the agenda is to receive and consider the financial statements and auditor's report for the year ended 31 March 2026. This is an opportunity to ask any questions specifically on the financial statements, the auditor's report or the company's 2026 annual report. We have Indy Sena, lead partner from PwC, here to answer any questions you may have specifically on those items. Please note that there will be that there will be an opportunity for general questions at the end of the meeting. Would anyone in the room wishing to ask a question specifically on these items, please raise your hand and a microphone will be passed to you. We will then turn to our online audience. We ask that you please state your name before asking any question. No questions? Any questions online? You have other questions online? As there are no further questions, I'll move on to the next item. The fourth item on the agenda is the consideration of the formal resolutions. There are 7 resolutions and each is an ordinary resolution. This means that they are required to be passed by a simple majority, more than 50% and of the votes of shareholders who are entitled to vote on the resolutions and do vote. Shareholders in the room would have received a voting card on arrival. If you did not and wish to vote, please visit the registration desk at the back and the team will assist you. Shareholders online can vote using the electronic voting card received when online registration is validated. To vote, please click get a voting card at the top of your web page or below the video. You will be asked to enter your shareholder number or proxy number. You can then vote by clicking for, against or abstain for each resolution. Remember to click submit vote on the bottom of the card once you have finished voting. Further information is available in the MUFG pension and Market Services online portal guide and you can also call the help line on 0800-200-220 for assistance. After voting on the resolutions, we will be happy to take any general questions about your company and its operations. Those online can submit questions at any time by using the online question function. We now move to consideration of the resolutions. Resolution 1 relates to the election of Anna Curzon. It is a requirement that a director appointed by the Board must not hold office without election past the next annual meeting following that director's appointment. Anna joined our Board in February this year, and I will now ask Anna to say a few words.

Well, thank you, Neville, and good afternoon, everyone. Gosh, it is a privilege to stand here before you today seeking your support for election to the board of Fisher & Parker Healthcare. Nelson's joining the Board earlier this year, I've had the opportunity to gain a much deeper appreciation of this remarkable company. As a member of the People and Rem Committee, I've seen firsthand the quality of the people the strength of the culture and the long-term mindset that underpins this company's success. It has reinforced my belief that exceptional care and outcomes for patients. starts with exceptional people. A few months ago, I had the privilege of visiting Middlemore Hospital, now seeing Fisher & Paykel Healthcare's products being used in neonatal and an intensive care, really brought home for me the real-world impact that this company has on families on patients and the communities around them. My career has really centered on helping organizations grow through innovation and technology. I spent 7 years on Xero's global leadership team. And the majority of that time was as Chief Global Product Officer, helping to scale one of New Zealand's most successful companies internationally. For more than 5 years and across success of New Zealand governments, I have also served on the APEC Business Advisory Council by appointment of the Prime Minister. I currently chair the regional economic integration Working Group, working with business and government leaders from right across the Asia Pacific to strengthen trade, innovation and economic growth. I believe these experiences together with my governance background will enable me to really contribute to Fisher & Paykel Healthcare's continued success as it pursues its long-term strategy. and global growth ambitions. It would be a privilege to continue serving alongside my fellow directors, supporting management and helping to create enduring value for our patients our partners, our people and of course, you, our shareholders. I respectfully ask for your support. Thank you. Over to you, Neville.

Thank you. Thank you, Anna. And I now move as an ordinary resolution that an occurs and be elected as a Director of the company. Are there any questions from shareholders in the room? Are there any questions online?

There are no questions online. .

There appears to be no further discussion, please now record your vote on this resolution. Thank you. [Voting]

The second resolution is to authorize the directors to fix the fees and expenses of PwC as the company auditor. Under the Companies Act, PwC is automatically reappointed as the auditor of the company. And just as a reminder, Indy Sena is with us today and can answer any of your specific questions. I now move as an ordinary resolution that the directors be authorized to fix the fees and expenses of PwC as the company's auditor. Are there any questions from shareholders in the room? Are there any questions online?

Yes, there's a question online from [ Grant Diggle ], who is the proxy for the New Zealand Shareholders Association. And the question that was the comment is the audit was last ended in 2016. Would the Board consider retendering the audit now 10 years has passed?

Look, it's a very topical question. And so I'll answer it with a little bit of philosophy. Our position as a Board is to be very insistent on audit quality. So our focus is on making sure that we have a very high-quality audit. And to that point, we have our own internal processes that we have a look at, largely under the direction of Mark Cross, who's the audit Committee Chair; and Lyndal, who's the CFO. We're satisfied on that front. We also look at the internal processes at PwC and their external reviews, and we also have a look at what the FMAs had to say on that. And I think we're perfectly content at this point that we are receiving a quality audit. And the other aspect of that, of course, is independence. And again, we're satisfied on that independence front and have very little cost going through to PwC that's not audit related. So at this stage, we're not considering an audit tender, but we are mindful of the position in the market at the moment.

Yes. The next question online comes from Stephen Mayne, and the question is along the similar lines. PwC has been our long-term auditor. When did we last tender the audit? And when are we next planning to tender the audit?

Well, I think I've answered that. So we can refer back to that.

There are no further questions online. .

All right. I'd ask that you please now record your vote on this resolution. Thank you. [Voting]

The second -- where are we -- directors' remuneration. Resolution 3 relates to nonexecutive director fees. Each year, the Board reviews nonexecutive director fees to ensure that they remain appropriate and aligned with the responsibilities of the role. As part of this process, the Board undertakes an independent market benchmarking review every 3 years. In March this year, we engaged Mercer, an independent remuneration consultant to assess our director fees against comparable organizations and provide an independent objective view on their ongoing appropriateness. Mercer looked at NZX and ASX companies of a similar size and scale. Mercer recommended an increase to director fees to place them at approximately the 50th percentile of the combined comparator group and the 75th percentile for the New Zealand comparator group. Mercer also proposed an increase to the total fee pool available for the payment of director fees to provide a headroom of approximately 15%. The Board has considered the experience and responsibility of the directors the size and complexity of the company and the level of governance and time commitment required by the directors relative to the advice received from Mesa. As a result of the benchmarking process, and the Board's consultation with a number of shareholders. The Board proposes an increase in the total annual pool available for remunerating non-executive directors. Now we also have [ Lizzie Cullen ], principal at Mercer, available on Zoom to answer any questions about the Mercer review, which was included in the papers. I now move as an ordinary resolution that the maximum aggregate annual remuneration payable to nonexecutive directors be increased by NZD 350,000 and to New Zealand NZD 1.750 million to NZD 2.1 million. Are there any questions from shareholders in the room? Are there any questions online?

Yes. First question is from [ Leslie Stephens ] and she asks, when the next director's remuneration change is considered. Would the benchmarking organization also consider and disclose the change in dividend per share and the change in value per share over the same period?

I guess, happy to include that. Just by way of reference, and of course, that all public information anyway, if you want to go back and have a look at it. But the 3-year dividend growth is approximately 28.4% and the 3-year price movement is approximately 40%. And of course, the share price today is ahead of where it was at the 31st of March, but that might be useful to the question.

The next question comes from Stephen Mayne. And the question is, given that we've got 5 remuneration resolutions on the agenda, why not go the next step and offer shareholders an Australian-style nonbinding vote on the remuneration? Could Sydney-based Chair, Neville Mitchell, who has dealt with dozens of rem report votes during his career, comment on whether he had any board or major shareholder discussions about this issue? If Xero and Fletcher Building voluntarily put up rem reports for the vote, why don't we?

Well, he's quite right, I have dealt with this over many years. But we're a New Zealand company, and we comply with New Zealand regulations. And in fact, we go a little bit further than what New Zealand regulations go, and we include all of Lewis' details. We already provide all the all the remuneration of directors as well. So we're not going to go to the Australian style remuneration report. We're going to stick with what we've got here in here in New Zealand. And I think that's perfectly adequate. I would also add that I did a very extensive consultation round before we issued our notice of meeting to have a look at what shareholders thought about this matter along with other things. And we didn't receive any support for an Australian style shareholder remuneration they were perfectly satisfied with what we've got. So based on that feedback, based on the fact that we're a New Zealand company, we're happy to remain with the present arrangements.

There are no further questions online.

As there no further discussion, please now record your vote on this resolution. Thank you. [Voting]

The fourth resolution is to approve the issue of discretionary long-term variable remuneration instruments to Lewis Gradon, Managing Director and Chief Executive of the company. As explained in the notice of meeting, approval is being sought to issue performance share rights and/or options up to the total value of $1.463,635 to Mr. Gradon. Prior to the grant, Mr. Gradon will be entitled to choose the proportion of PSRs and options to make up the total value to be issued to him. The value of each PSR and option will be determined by an independent valuation to be completed following the meeting. The key terms under which the PSRs and/or options will be issued or set out in explanatory Note 4 of the notice of the meeting. The Board believes that the issue of PSRs and options to executive management provides appropriate alignment of the interests of those employees with the interest of shareholders over the long term. I now move the ordinary resolution that the grant of discretionary long-term variable remuneration instruments to Lewis Gradon, Managing Director and Chief Executive Officer, be approved. Are there any questions from shareholders in the room? Any questions online?

There are no questions online. .

Please now record your vote on this resolution, and I thank him. [Voting]

Resolutions 5, 6 and 7 relate to the company's long-term variable remuneration in North America. In 2025, the Board reviewed the company's long-term variable remuneration arrangements. Following that review, updated performance share rights, options and employee share right plans were introduced for the company's employees included for selected high-performing employees in North America. A summary of the key terms of each plan is provided in explanatory Note 5 of the Notice of Meeting. Under United States law, these plans require shareholder approval. I now move as an ordinary resolution that Fisher & Paykel Healthcare Corporation Limited 2025 performance share plan share rights plan North America be approved. Are there any questions in the room? Any questions online?

Yes, there is a question from Stephen Mayne. Why aren't you disclosing the proxy votes? Did any of the proxy advisers recommend a vote against any of today's remuneration items, including this proposed performance rights grant? And has there any -- doesn't add -- and has there any material proxy protest vote against that was the wording verbatim. If so, what were the issues of concern?

So the issue of when you disclose the proxies has been an ongoing one and our decision here has been that we disclosed it at the conclusion of the meeting. So just like in a general meeting, you don't -- a general election, you don't know what the vote is before you vote. So we're taking the same approach here. I think it helps stimulate the conversation along the way, if you know how -- if you don't know how the voting is going quite entitled to ask questions along the way. Then moving to the second part of it. So we will -- so just to be clear, we will be putting up the proxy numbers, but that will be at the conclusion of the voting, and then you can see how others have voted. In terms of the proxies, yes, we have all the proxies opine on our resolutions. And ISS voted against the nonexecutive director remuneration. They felt that, that was -- we already were adequately paid. But I think we've already moved past that agenda item, but happy to display it afterwards. And as a consequence of ISS, you'll see that there was votes against the nonexecutive director fee increase.

There are no further questions online.

All right. So resolution 6, I now move as an ordinary resolution that the Fisher & Paykel Healthcare Corporation Limited 2025 share option plan North America be approved. Are there any questions from shareholders in the room? Any questions online?

There are no questions online. .

All right. Please, could you now vote on Resolution 6. [Voting]

I now move on to Resolution 7, and our move as an ordinary resolution that the Fisher & Paykel Healthcare Corporation Limited Employee Share Rights Plan North America be approved. Are there any questions from shareholders in the room? Any questions online?

There are no questions online. .

There appears to be no further discussion. So please now record your vote on this resolution. Thank you. [Voting]

That now concludes the voting today. Thank you for your participation. MUFG will collect your voting cards from those in the room. For those online, please ensure that you've now submitted your electronic votes, MUFG will count the votes as scrutineer, and the results will then be announced to the NZX and ASX. We will now display the proxy results that we had as of Monday's voting deadline final results of voting, including yours lodge today, will be announced to the NZX and the ASX as soon as they are available this afternoon. Just take a moment to collect votes. [Voting]

Good. All right. I think that's complete the voting. There is now an opportunity to ask any general questions about matters relating to the company. Are there any questions from shareholders in the room?