IPD Group Limited (IS6.F) Earnings Call Transcript & Summary

Okay. Good morning, everyone. Ladies and gents, it's my pleasure to welcome you to our Annual General Meeting. For those who don't know me, my name is David Rafter. I'm the Chair of the company and also chairing today's AGM. So just to reconfirm, as stated in the notice, shareholders participating in the AGM via the live webcast, kindly be advised that you will not be able to ask questions or vote when viewing the live webcast. As it is now a few minutes after 11, and we have a quorum of shareholders present, I will declare the meeting open. To start, I will welcome and introduce my fellow directors. So on my far left is Andrew Moffat, fellow Non-Executive Director. To my closer left is Michael Sainsbury, CEO and Executive Director; and to my right is Mohamed Yoosuf, who heads up our Strategic Development and is also an Executive Director of the company. Some other intros. We have Jade Cook down the front, who is our Company Secretary. Is Scott here from PKF?

Yes. [indiscernible] but we should have a representative here.

Okay. So who's the rep from PKF [indiscernible]. We have no written questions submitted for -- by shareholders for PKF as our auditors. But PKF rep when they're here, we'll be happy to answer any questions on the audit. Thank you. We also have Maria from Computershare. Good morning, and she will act as the returning officer as we conduct the poll. So the agenda is fairly simple, 3 components. Firstly, I'll provide a Chair address, which will outline the company's salient operations for FY '24. We'll then run through the formal business of the meeting, and there will be an opportunity for shareholders to ask questions on the resolutions proposed. And following that, I will close the AGM and then Michael, our CEO, will present an update on our recent business developments. Okay. So in terms of Chair address, FY '25 has been another year of earnings growth, operational discipline and strategic execution for the business. Against the backdrop of some economic uncertainty in some target market sectors, IPD remained focused on delivering value for shareholders with statutory revenue growth of 22.1% and net profit after tax growth of 17% over the FY '24 prior comparative period. IPD's strong cash flow conversion performance at 113.6% was another highlight for the financial year. This result allowed the repayment of $20 million of a $40 million bank loan facility that was related to the acquisition of CMI operations in FY '24 and delivered a year-end net cash position of $9.8 million. This leaves the group once again in a very strong financial position, providing investment and capital management flexibility. This includes continuous evaluation of M&A targets that provide accretive earnings growth and strategic value. Further to these positive financial results, the Board approved total dividend payments to shareholders of $0.126 per share, fully franked for FY '25. This equates to shareholder dividends of $13.1 million and a payout ratio of 50% of NPAT, which is in line with the group's dividend policy range of 40% to 60%. The total dividend of $0.126 per share was a 16.7% increase over FY '24. From a strategy standpoint, the Board participated in several full-day sessions with the IPD leadership team to further develop and refine the group's strat plan. The Board is confident that this updated plan will enable all group businesses to benefit from Australia's accelerating investment in electrification, decarbonization and industrial automation. With respect to governance, the Board placed particular emphasis across the financial year on succession planning for key roles, AI-related risks and opportunities, cybersecurity robustness, mandatory climate reporting and operating overhead expense management. The Board also undertook workplace health and safety observation walk-throughs in a couple of the group's Sydney and Melbourne premises. IPD enters the new financial year FY '26 from a position of strength. Demand for integrated electrical solutions continues to grow, driven by infrastructure upgrades, data center expansion and decarbonization objectives across the economy. We are positive the group's strategic direction is sound and remain focused on innovation, disciplined execution and shareholder returns. As CEO, Michael Sainsbury, will shortly detail in his presentation, year-to-date trading is showing positive momentum across all group businesses, and we are pleased to announce guidance for the first half of FY '26 in the range of 5.1% to 7.2% for EBITDA growth over the FY '25 PCP. To close, I would like to thank my fellow directors for their considerable input and guidance across the financial year. I'm particularly pleased that Founding Director and major shareholder, Mohamed Yoosuff, will continue his long-standing connection with IPD as a Non-Executive Director following his retirement from his current executive role at the end of December As disclosed in October, [ Moh ] has made an indelible mark on IPD Group over the past 2 decades, a period of significant growth, multiple acquisitions and a successful ASX listing. I also note his commentary at the time that he will remain actively engaged as an NED and long-term shareholder with no current intention of reducing his shareholding. I thank all our shareholders, staff and supply chain partners for your continued support and belief in IPD's future. Thank you, and we can move to procedural matters. So just the formalities. Today's meeting has been convened in accordance with the Corporations Act. The Notice of Meeting was lodged with the ASX on the 24th of October 2025, and therefore, within the required notice period. If there are no objections, I will take the notice as read. Okay. Registration, is anyone who is entitled to vote not registered, the registration desk is yet at the front. Okay. All good. So please, you would have got an identity card from the registration desk. The [Technical Difficulty].

Thank you. Please continue.

All good. And white display card for visitors and invited guests. The voting process, all resolutions to be considered shall be decided by a poll. So for this purpose, may I request all members present in person or by proxy to fill in the green voting card. If you are a shareholder and wish to cast all your votes for a resolution, please place a mark in either the for, against or abstain box next to that resolution. If you wish to split your votes, please write the number or the portion of votes you wish to cast in the corresponding box. Please note that the sum of the split votes must not exceed your total holding. Voting cards will then be collected at the end of the meeting by Maria and team and counted by the share registry. Shareholders in attendance that have already submitted a vote by proxy should note that your votes will already be counted towards the poll, and you do not need to launch another vote unless you wish to change your proxy instruction. Are there any questions in relation to the voting process? All clear. In order to provide you with enough time to vote, I will now declare voting open on all resolutions. You can submit your votes at any time, and I'll give you a warning before I move to close voting. I would like to highlight that where undirected proxies have been given in favor of the Chair, I will be voting these proxies in favor of all resolutions put to the meeting today. I will disclose proxy votes prior to the vote being taken for each item, and these figures will be as at the closing time for receipt of proxies, which was 11:00 a.m. on Sunday just passed. Q&A, during the meeting, I will put various resolutions to the meeting. Shareholders can raise questions that relate to the business of those resolutions by raising their yellow or green display card. May I request that you clearly state your name and your capacity before asking your question? Visitors are not permitted to participate in the Q&A session. All questions should be addressed to me as the Chair, and I will deal with the question personally or ask someone, who is better placed to respond. And of course, we will do our best to answer any relevant question raised within a reasonable time frame So we can now move on to the formal component of the meeting. Item 1 is the financial statements and reports. So this is to receive and consider the annual financial report of the company and the related directors and auditors' reports in respect of the financial year ended 30 June '25. Please note, there is no formal resolution required for this item. And I, therefore, now open this item for discussion. Any last call for questions or comments? No one. So I'll now ask the company Secretary to record that the annual financial report and the related directors and auditors' reports in respect of financial year ended 30 June 2025 have been received and considered by the shareholders. Okay. First resolution, the adoption of the remuneration report, which is set out -- was set out in the company's 2025 annual report. This resolution now appears on the screen, and I will take it as being read. Also on the screen are the proxy votes received on the resolution, and I now open this resolution for discussion. Last call. All good. I formally put this resolution to the meeting and please cast your vote. Okay. As resolution #2 relates to me personally, I will now hand over to fellow NED, Andrew Moffat.

Thanks, David. So Resolution 2 today is the reelection of David Rafter as a Director. Thank you. Sorry, resolution appears on the screen, and I'll take it as being read. Also appearing on the screen are the proxies received for the resolution. I now open this resolution for discussion. Shareholders are requested to raise the yellow or green voting cards for any questions. If there are no questions, I'll formally put this resolution to the meeting. Please cast your vote on the resolution. Well done. Thanks.

Thanks, Andrew. Okay. The next item of business relates to the approval of issue of performance rights to Michael Sainsbury, Director of the company. This resolution appears on the screen and I'll take it as being read. Also proxy votes are on the screen related to this resolution. And I'll now open this resolution for discussion. Last call, are any questions, comments? So I'll formally put this resolution to the meeting. Please cast your vote. Okay. Next item is general questions. So I will ask if there's any further questions on the matters we have presented to this point or any general questions regarding the business of the company. No one. Thank you. Ladies and gentlemen, that concludes the formal business of the meeting. A couple of minutes, I will close the voting, and please ensure that you have cast your votes on all resolutions. All done. Thank you, Maria. I'll now close the polls. And when the voting has been collated, the results will be declared on each resolution released on the ASX and published on the company's website. That concludes the formal business of today's meeting. Thank you very much for your attendance and participation. It is 11 a m. So I now declare the AGM closed, and I'll pass over to our CEO, Michael Sainsbury, for the company presentation. Thank you all.

Thanks, David. Thanks, Jade. Appreciate that. I'll stand up if I can, so I can look at the screen that you're looking at and make sure I can give fair warning in advance. So welcome, everybody. Thanks for taking the time to be here with us today. It gives me great pride and great pleasure to be able to talk to you about the business. For those of you who haven't met me before, my name is Michael Sainsbury, as David mentioned, and I'm the CEO for the company. On the deck, what we'll share today. I'll give a bit of an overview, a bit of an update from both a strategic and operational perspective. I'll then talk a little bit about the markets that we're attached to and the performance of those markets' material to our performance. I know that the part you'll all be looking forward to a trading update and outlook and then the time for Q&A at the end. Just advancing through to Slide 5, which is just a title slide, Slide 6. So this just for those of you who aren't intimately familiar with the business or want a reinforcement of the story. IPD Group is the parent company trading under ticker code IPG. Underneath IPD Group, there are 4 stand-alone businesses but well connected, a lot of synergy between each of those businesses. To give you just a quick summary of what they do, we've got the Addelec business, which is a complete electrical engineering services provider in the high and low-voltage space with a strong specialization around EV charging and particularly the infrastructure to support EV charging. The CMI business, which is our most recent acquisition, is a manufacturer and distributor of electrical cables, specialty plugs and couplers and receptacles for industrial applications. A lot of the plugs go into underground mining applications, but not exclusively. And those plugs are manufactured. They're the company's own IP. They're manufactured locally here at [indiscernible]. The cable is through an import from our overseas manufacturers. EX Engineering, which was an acquisition just prior to CMI is a business that specializes in the supply modification, repair and design of hazardous area electrical equipment. They can either do that as loose components to be able to do MRO, maintenance, repair and operations in that hazardous environment or they can engineer, design and build customized solutions to go into that hazardous area environment. and they are able to provide IECEx compliance and certification. We get audited once a year to maintain that compliance certificate, but they are able to, in their own right, comply and specify down to that IECEx capabilities. And then IPD, which is the founding part of the business, I guess the base upon which the business was built. It's in power distribution, energy management, automation, product distribution, but importantly, has the capacity to be able to build customized assemblies for customers as well, taking away the labor component from our -- some of our customers and bringing that in-house with a strong engineering bias towards that as well. So all well connected, a lot of synergy and certainly adjacent businesses in the electrical infrastructure space. Moving on to Slide 7. A lot of information on here, and I'll quickly just go through it to give everybody some clarity. What drives us? A connected group delivering complete electrical solutions that enable Australia's transition to safer, smarter, more sustainable electrical infrastructure. And the core of it, that statement does really summarize what does -- what is our value proposition, what our focus is on in the marketplace. If we talk about our strengths, the first one there being the industry scale. We are one of the largest electrical product distribution networks for commercial industrial sectors in Australia. We exclusively play in the Australian market. We do export a small amount to New Zealand, but not a great deal. It's not material in the scale of things. It is throughout Australia, but we are recognized as one of the leading distributors in the space of electrical infrastructure. When we talk about custom solutions, I mentioned before, we have the ability of selling loose components to a customer, which they would then integrate into a total solution as part of the electrical infrastructure or we can work with our customer to engineer a complete solution to do the engineering component, the design component, the drafting component and then the build to be able to take that away from our customer if they require it. And that is in the IPD business, in the CMI business as well as in the EX Engineering business and of course, in the Addelec business, where a lot of it is engineered solutions. A really important one for us is trusted brands. We have an extensive product portfolio, well diversified, giving us protection for -- across multiple markets and across multiple end verticals. But what we do is we partner with Tier 1 OEMs, global OEMs. We're not working with the fuse manufacturers. We tend to not get any issues around quality or recalls or anything like that because we are working with the world's most recognized and valued brands. And it is certainly recognized, and I talk about our biggest portfolio in our offer, but not exclusively with ABB -- sorry, it is exclusively, but it's not the only one in our portfolio, where it is recognized as best-in-class product solutions in its space. So we are working with the Tier 1 brands. Expert Solutions, we talk about our business being a high-touch business. There is a portion of our business, and probably in the vicinity of 20% to 30% of our business that is day-to-day trade. Customer places an order. It's based on a part number. It might be replacing something that's already in installed base. It's very much a transaction, just a box shifting transaction. But the large percentage of our business has an engineering component. All of our salespeople on the road across the entire business come with some electrical expertise, whether that's engineering, mechatronics, electrical trades. And the reason that we mandate that is because our people need to be able to suggest, to be able to specify, to be able to help and assist in the selection of the most appropriate product to achieve the outcomes we're looking for. And remembering a lot of the devices we are selling are life-saving devices. So if you get it wrong, the results can be very, very, very obviously, large scale. So a deep technical expertise to deliver reliable, compliant electrical solutions with confidence. And we do that, and we do that extremely well. Obviously, a commitment to safety and compliance, a legacy of regulated market and expertise, delivering safe and industrial leading solutions goes without saying. When I talk about our purpose and our mission, if you think about that up on the top there, what drives us, the 2 link in perfectly. Our purpose to build a future, where sustainable electrical infrastructure creates a better life for all. And how are we going to do that? We're going to enhance every aspect of infrastructure through energy efficiency, automation, secure connectivity, while prioritizing the safety and well-being of people, internal and external. Our results, we're focused on sustainable, important word, sustainable shareholder value creation is and our results, pleased to say that our results show that and the future looks quite bright in being able to deliver that forward-looking. Moving on to Slide 8, and I'll talk more to our strategy here. Remembering that this presentation, although it's -- we're in November now is a recap on financial year 2025. And it was obviously a year of disciplined execution for us across all of the 4 strategic pillars that I'll talk to, strengthening growth, strengthening efficiency, strengthening sustainability and focusing on our people. The first pillar that I'll talk to there is around business growth. And at the end of the day, it's one of those -- the 4 pillars that does drive us and focus on and one of our core outcomes we're looking for. What is the strategy there? It's a focus on customer value and market expansion. How will we do that? We'll do that by selling more of the products we have today and expanding our product portfolio to give a bigger basket for our customers to be able to draw down from. It will either be in a distribution model by expanding our portfolio or via M&A, expanding out and gaps in our portfolio or adjacent spaces in our current portfolio through either acquisition or through a distribution model, and we're actively working on both of those. If we look at some of the results from 2025, and David mentioned a couple of these, but revenue up 22.1% at -- over $350 million, net profit up 17%, reflecting disciplined growth and strategic execution. Data centers continue to grow. Last year, I think it was 12% of our revenue -- sorry, in 2024. 2025 was 16% of our revenue, which represents a growth of 33%, and it reinforces our role in electrification and decarbonization sector. Important to point out here, there's 2 different types of data centers. There's your hyperscale opportunity, which tend to be the global players. And a lot of the time, it's driven by a global specification. Our ability to influence here in Australia is somewhat limited. We can manage the channel well. We can service the customers well, but a lot of the time, there will be a specification at a global level. Sometimes we'll be the beneficiary of that, i.e., with Amazon. Sometimes our competitors will be the beneficiary. ABB have recognized that they probably haven't put as much time or effort and attention into this space as some of our competitors in the past. and they are working feverishly now to try and promote the portfolio [ to broad their ] tech offer into this environment to change some of those specifications or to get even if it's an alternate approach into these specifications. So -- and ABB, they've appointed a data center lead here in Australia, which is looking after the Asia Pacific, which is a good change for us. So they're working really hard at the top end around influencing specification. What we're doing extremely well is managing the channel here that when we do get that specification that the customer gets the top product on time, gets the support they need, gets the representation they need locally. We talk about then downstream from that hyperscale, you've got more colo, and that tends to be where we're focusing a lot of our time ourselves because there is the ability to influence the specification a lot of the time. And if I use the expansion of Goodman, let's say, for instance, Goodman are certainly looking to move into the data center space. away from just construction and commercial buildings and go into the data center space. They have engaged Stowe Electrical, which is one of the biggest contractors here in Australia, and they are exclusively getting Stowe to do the product selection for their data center. We have a really good relationship with Stowe here, and we're in a great position to leverage off that. But it's a good example of where we can influence the specification. But on the hyperscale, it can be very difficult for us to change it if it is specified a competitor. And we renewed our new 4-year partnership with ABB's electrification products. Obviously, we have a master distribution up to and including 1,000-volt equipment, which has been the same as it's been for the last 5 years. And in ABB's mind, we have done an exceptional job. We have outperformed the targets that they've set for us in every year of our tenure representing ABB and not just by a small amount. We've exceeded that by a substantial amount of every milestone. So in ABB's mind, certainly, from a global perspective, there is certainly a recognition of the difference that IPD has brought to ABB in Australia. And I remind everybody, when we took over ABB distribution in the electrification space 4.5 years ago, their market share was sub-5% in Australia. Today, we're circa 10% to 12% market share. They've spent 30 years promoting their offer to get to 5% market share. We've spent 4.5 years marketing their offer to take it to 12%. But we're not sitting on our hands. We're not resting on our laurels. We'll keep working at that. And there's certainly -- globally, they have market shares somewhere between 30% and 40% in most geographies. That is certainly our ambition to take it to that level, and yet you don't have to be a rocket scientist to work out to take it from 12% to that 30% to 40% mark means that there's still a significant opportunity for us to grow the ABB portfolio in Australia to bring it back to those global levels. Our customer Net Promoter Score, we do this once a year. We go out [ to out ]. We survey our customers. We ask them what we're doing well, what we can improve in. Our Net Promoter Score of 19.3 is a strong result. It's the first time we've had a result, where we're actually representing that as a complete group. So we're including CMI, we're including EX, we're including Addelec and IPD in there. So in giving you any comparison, it wouldn't be reflective of the business as it was done last time, but it's somewhat in line with our previous result from a customer Net Promoter Score. And obviously, anything benchmark, anything seen up to between 10% and 30% is a strong result in that area. So -- it reflects a strong customer trust, a strong satisfaction and a healthy result in line with the B2B industry benchmarks. But again, not something we're sitting on our hands. We're consciously and consistently looking to do things to update our go-to-market strategy, our digital tools, our representation, our offer there to be able to continue to get better. Mergers and acquisitions, while it's not mentioned there, it is certainly a key part of our mandate moving forward. I know that I have received some feedback from some of our shareholders that with Mo moving into -- sorry, into a non-exec role, will that mean that there's less of a focus on mergers and acquisition. And I can categorically say today, nothing would be further from the truth. Mohamed in his non-exec role will still be charged with the responsibility of working with mergers and acquisitions for us as one of the directors and one of the major shareholders of the company. Jason and I will continue to put a strong focus on mergers and acquisitions. So I can say to you categorically now that the M&A pipeline for the future is more robust than I've seen it probably in the last 3 to 4 years. We are talking to more potential acquisition opportunities than we have been for quite a long time. And materially, there are some that are really starting to gain some momentum. So nothing could be further from the truth if there's people out there that are perceiving by most change that there's a deviation away from mergers and acquisitions. It is not the case, and it will be a big part of our growth strategy moving forward. When I talk about operational efficiency, I think FY '25 was a year where we controlled the controllables in a market that was somewhat challenging in the commercial space and probably not such a buoyant market, it's important in those times that we pull the levers that we need to pull to control the controllables. And I believe we did a very strong job of that in 2025. What are we planning to do there? Build scalable operations, leveraging shared services and technology across our group. And there's some good examples of what we've done there. The first point there is an amazing result. Operating expenses reduced from 21.4% of revenue from 24% in the prior comparative period. When you talk about controlling the controllables in a challenging environment, cost base is the first one you [ got ] to look at there. And we've been able to do that, reduce that cost base with very little impact to our Net Promoter Score and that was a very, very strong result from the management team and focusing on improving our margins and the scalability. We are a very -- at the core of it, a very cash-generative business. Cash conversion in the last period, as David mentioned, one of the highlights. It enabled us to deliver $20 million worth of debt repayment from the CMI, where we raised -- we went out to market raised $65 million. We were able to deliver $20 million worth of debt repayment over the last 12 months. The cash flow conversion rate is there, finishing with a net cash position of $9.8 million, which gives us a very, very, very strong balance sheet position to be looking at those mergers and acquisitions and potentially being able to fund them out of a combination of cash and a little bit of debt, meaning with those acquisitions, no dilution for our shareholder group, which is important. And excitingly, we opened up our first co-located facility. We did one in Brisbane, where we opened a new facility up, a state-of-the-art facility up in Brisbane Airport right near the airport. And we're co-locating in there, the IPD business, the Addelec business. And as of yesterday, the CMI business has started to move into that. So we're co-locating all of our business. The really important part there is from an efficiency perspective, it's great because it means we can share services and we can share resources and but most importantly, we can share the sales synergies, the leads, the things that we come across all day under the one roof. They're meeting at the coffee station, they're meeting in the bathrooms, they're meeting in the showroom, they're meeting at the foyer. The sales synergies that come out of co-locating all of our people into one building can't be measured, but they're certainly very strong. And we've now replicated that down in Melbourne, where CMI are in there. We've got an operational CMI warehousing in the same building as Addelec, where we do test calibration in our laboratory down there and the entire IPD team is also housed at that Melbourne facility as well. So from a cost and efficiency perspective, great. From a sales synergy perspective, even better, and we're seeing the benefits of that certainly come to the fore already. Moving on to Slide 9. Under sustainability, our strategy there is to embed responsible environmental and social practices into the organization. We've picked a couple of points here. Honestly, I could talk to probably 50 things that we're doing here from an organization. We're transitioned and we're in the process, obviously, as vehicles come to end of life, we're replacing them. So we've transitioned those vehicles that have come to end of life from a petrol environment into an electric hybrid vehicle fleet with chargers installed at almost half of our sites. It wouldn't make sense to install the electrical infrastructure and the charging hardware in sites that are coming to end of lease soon. So when we bring them into new facilities, we'll certainly bring them up to speed as well. But -- and the next one there will be in Perth, we'll co-locate in Perth. We've eliminated over 175 cubic meters of landfill waste through packaging and recycling initiatives. Inside the office, obviously, everything -- no one has bins in their desk anymore. It all is recycling. All of our office environments are completely recycled. We're using the circular economy with ABB around our packaging, around crates, which are collapsible crates. ABB ships to us in crates, which are collapsible. We collapse them down. We send them back to ABB and the next delivery comes in the same crates that they send them to last time. So we're eliminating the use of cardboard and all that sort of thing by the circular economy. And really importantly, and we talk about social responsibility, supported 10 university partners to develop further engineering talent and community outcomes. And this is a great way to certainly support the community, certainly to support the young people coming through in the electrical space. but also the early identification of talent to be able to bring into our organization. So while we represent this under sustainability, it certainly has a positive impact on our talent, migration into the business as well. And last but certainly not least, because at the core of it, you could nail the other 3, but if you don't get the right people into your organization, your chances of success are ultimately very, very slim. So it's a focus on people, building an engaged and diverse workforce aligned to the group priorities. And if we talk about that there, we have over 625 employees in the organization currently. We have 40-plus nationalities represented in our organization. So we have a great spread, reflecting inclusion and certainly capability growth. Big focus on training because you can get good people. For me, enthusiasm is knowledge on fire. To give knowledge, you have to train. And that's self-training, but it's also us delivering training to our people. So we've delivered over 5,000 hours of training to our people, internal training, and we have made over 30 internal appointments to strengthen our career pathways. Certainly, when you talk about acquisitions, there's all the value that comes with shareholder value and customer value by having a bigger basket of products. But what it also creates is a much more, I guess, healthier opportunity pipeline for our people to be able to grow and develop into what is a larger organization with a lot more scope and a lot more diversity. We've raised over $9,000 for community causes. This $9,000 is not what we put in as an organization because that's over and above here. It's what the people in our organization have donated themselves to go into community causes. Every quarter, we have a different charity to support and the $9,000 has come from the pockets of our people to support that and is over and above what we've done from a company perspective. When we talk about Net Promoter Score, we recently embarked on our own employee Net Promoter Score or survey, giving us a Net Promoter Score of plus 28, a very, very strong result. And again, the first one since we've had the CMI business integrated and the EX Engineering business integrated. It can be a period when you have integration, where Net Promoter Score drops away because integration can create fear. And when I say integration, it doesn't mean all coming together in one company, just coming into the group, a new ownership, a different way to go into the market, a different enthusiasm, different expectations. It can be a period, where it can put pressure under this. But I'm pleased to say that even in that environment, where we're certainly deep in the trenches of bringing the CMI business and the EX Engineering business on, still a Net Promoter Score of 28 and 75% engagement. So of all of our employees, 75% chose to partake in the survey, which is a very high engagement score showing that they want to give us the feedback. And we've got certainly some outcomes that we wanted to embark on there to continue to improve. But that score of plus 28 is well above the industry average and reflects a strong value-driven culture. One of the things I'm most proud of in my time as CEO, yes, the results have been outstanding, but the culture, the DNA in the business, the people in the business, the fun, the enjoyment, the respect is something that I hold core to what we've been able to achieve in IPD and probably my biggest achievement. Moving on to Slide 10, we move into a market update. So if I talk about now, a lot of that was internal focus. We talk about external focus. And I'll talk to commercial construction because 30-odd percent of our -- certainly the largest part of our revenue comes from commercial construction. I'll talk to that in the next slide. But aside from that, we've got 3 tailwinds that will support our business and drive growth into the future. In the last 12 months, these 3 areas here have probably underpinned a little bit of soft performance in the commercial construction. And where that's dropped off, it has been balanced off by a growth in these areas here. The great thing is that when commercial construction starts to come back, and I won't go too deep on that because I do cover it on the next slide, when the 2 of them combined together, it will be an opportunity for us to really recognize strong growth in the market. So if I talk about the tailwinds, there would be nobody in the room or online today that hasn't heard the 2 words data center or 3 words data center growth in the last 5 years. And I'm just going to reinforce that today. Capturing capacity that is expected to double by 2030, although there's been a massive investment in data centers in the last couple of years, certainly in Australia around the globe. The expectation is that it still needs to double by 2030. So we've got 4 years to do what we've done in the last 4 years again. So it's certainly not in a period that is going to be condensing or flattening out. That represents in excess of $26 billion worth of projects in the pipeline for new facilities. That $26 billion is the total investment and the electrical investment tends to be roughly 20% of the total investment. In a data center, you could probably argue that's as much as 30% because they are very power-rich data centers. But regardless of whether it's 20% or 30% of $26 billion, there's a significant investment into electrical spend in data centers that we have the ability to be able to [indiscernible]. And we have ABB product portfolio is well placed. The tech pack there is as strong as any of the competitors, and we are well placed to capitalize on that. The other thing is we've hit a real sweet spot. We have a product called bus duct or busway; some people call it. It's a replacement for cable and it's very commonly used. It's a structured cabling system to get power around the data center effectively, efficiently, allowing future expansion seamlessly. Our offer just seems to have hit the right spot in this data center environment. And we have a significant pipeline of data center opportunities with our busway portfolio. So that will certainly underpin strong growth, and it will give us the ability of pulling through a lot of products -- a lot of other products on the back of that. And the data center phenomenon is being driven by ESG upgrades driving efficiency. Mandatory reporting is becoming reality for everybody if it hasn't already as an organization, depending upon your scale, it will in the near future. And you have to have granular visibility of your electrical infrastructure to be able to report and report appropriately. That's great news. That's great news for us, and it will drive upgrades, driving this efficiency because that data has to be stored somewhere and there has to be devices to capture that data. So it's not only new facilities, but it's certainly upgrading existing facilities to meet with those expectations. So that's data centers. If we talk about EV market acceleration, I'll touch here, well, first and foremost, car sales, a combination of EV cars and plug-in hybrid EV cars has tripled since 2002. We've seen the uptake, the percentage of cars sold tripled since 2022 in electric and in plug-in hybrid electric vehicles. However, that is still forecasted to have to grow 4x by 2027. And we're nearly at the end of 2025. So we're not talking far away, but those car sales to still grow by 4x to meet the requirements and the aspirations around net zero with our current government. And the infrastructure rollout is certainly underway nationally. Addelec is well placed in this space. The other place that we are well placed is in the National Construction Code, which is what governs what a new building that has to look like from a design and install perspective, up until now, it has said that the building must be built electric vehicle charging ready. So the infrastructure has to be there, the power available to support EV charging, but you don't have to have EV chargers installed in those facilities yet. There is a new national construction code that has been out for comment. That comment is now closed. I expect that it will be brought -- taken into place probably midyear next year. That will come out now saying buildings can no longer just be EV ready. They will have to have EV chargers in those buildings as well. So you're talking about a commercial building with 1,000 parking spots -- suddenly, there will be a requirement for in excess of 250 EV chargers that have to be put into that building, and they will be single phase, 3 phase, 7 kilowatts, which is more destination charging, but there will also be a ratio built into that for every, let's say, 10 destination chargers, there must be 1 high-powered charger. Now that there creates a massive opportunity for us and really changes the game for us around EV charging because right at this point in time, the biggest market -- we sell a very, very, very strong value proposition, high-tech EV charger in that destination environment. It's probably not what misaligned with the market requirements at the moment because people in houses are using EV chargers as a glorified power point. But when this National Construction Code comes in, it will drive -- the building owners will want the EV charging to become part of the building management or the electrical infrastructure. So they will need to have comms built into the EV chargers. They will need to be able to accept renewable energy to be able to support those. And a lot of the cheaper alternatives that are being sold today won't meet those expectations. So it will create a massive opportunity for us in the EV charging market when that National Construction Code comes out. The energy transition, when we talk about transition to renewables, battery energy storage, it is massive that we're seeing -- it is reshaping the grid. We're seeing utilities completely reshaping. We're talking about end users like FMG saying they want to become completely able to operate off the grid from renewable energy sources alone as an insurance policy against power outages, an insurance policy against rising energy costs and everybody, utilities, end users, people like ourselves with all of these facilities, we're demanding on our landlords that they put solar on there because electricity usage is one of our biggest bills across our facilities. So to be able to reduce those energy costs, everybody is driving renewable. As I mentioned, utilities upgrading their infrastructure to build resilience and continuity of supply and a supportive regulation and ESG pressures are also driving this migration as well. So 3 pillars there that will underpin substantial growth into the future. As I say, it's been compensating for us in the last 12 months for a little bit of a downturn in commercial construction, but they will be there for the next 5 to 10 years to support us. That's all great. But what does that mean for IPD? Our opportunity is to be able to support -- supply the core electrical infrastructure, the switchgear, the distribution boards, the switchboards, the UPSs, the cabling into these opportunities. We have a strong position in EV charging. We are very strong in automation with some really good vendors from around the world, and we have a really strong offer and expertise in hazardous area solutions as well. And we have a proven track record of delivering into data center. I talk about Amazon. It is circa $28 million worth of revenue being delivered by IPD into Amazon opportunities here in Australia. and being able to support utilities and major projects is certainly core to our expertise. One of the things we've built into our customer service now -- service team is a project management team to assist in deliveries and that sort of thing for our customers. So we're continuing to get better on those major projects. Commercial construction, growth in commercial, a lump in their industrial infrastructure projects will drive demand. At our last roadshow, I spoke about green shoots in commercial construction and that is certainly the case. And I can talk to it a little bit in here -- sorry, for those of you online, we're on Slide 12. My apologies. So non-residential building work yet to be completed. Great point, yet to be completed. So the results that we're going to talk about aren't necessarily been materially impacted by that yet because you would say that has been completed if they've been delivered. This is yet to be completed, 27% year-on-year, including a 13% increase in commercial buildings, signaling sustained market momentum. And this is coming straight from the ATS in there, and we're referencing where the statistics is coming from down there in the environment. So realistic, we're starting to see commercial construction come back, where certainly our quotation pipeline is more biased to commercial construction and general construction than it has been for the last 12 months. And as that picks up and gathers momentum with the 3 tailwinds that I spoke about on the last slide, we will be in a very strong position for growth for the future and sustained market momentum. It's led by health. It's led by education. It's led by accommodation. It's led by warehousing projects, supporting a strong pipeline of work yet to be delivered. So we're in a really -- the order book has never been stronger. I'm mindful of presenting an order book to you because it could be materially impacted either positive or negative if I've just shipped a major project or I'm just missed shipping a major project. But I can tell you that our order book is very strong. It has never been as strong as it is today. And I'm pleasing to say that in the CMI business, substantial order growth in there, and we're recognizing projects in our order book for CMI, much larger scale than we ever have before. We talk about infrastructure expansion, engineering construction activity accelerating, commencements up 43.4% in the June quarter and 24.5% year-on-year, underscoring expanding infrastructure investment. Again, that's indexed down below where we're getting that information from, well aligned with our strengths in power distribution and automation. One of the projects that I'll talk about on the next slide is exactly that what we've done in automation in an optical environment, where they're manufacturing lenses. So very big there. Sustainability and smart building focus, a shift towards energy efficiency design across commercial and industrial projects. Data center investment, again, we'll talk about here accelerate. This is a really important point. Due to the 5-star NABERS requirements, and I'm not sure if anybody in the room has heard about this because it was only changes in the standard from July. It's called Power Usage Effectiveness. What now the standards are saying that you must have a PUE, which is Power Usage Effectiveness of less than or equal to 1.4. What -- how do you come up with that? Power Usage Effectiveness is the total power consumed by data center divided by the power consumed in the white space, which is the IT equipment. So that can't be any more -- what that really means is if you've got a data center that is needing 1 meg of power for the white space, you can only have a maximum of 400 kilowatts to support the heating -- sorry, you don't want a heat in a data center, cooling, lighting, EV charging. So the ratios, it's a new mandate that's been put in. I've got some numbers here that I can talk to you about since that change. If I talk about before that change, the average PUE in Australia was 1.7. So it meant for every 1 megawatt was being consumed in the white space, we were using 700 kilowatts to support cooling, to support lighting, EV chargers, those sort of things. Post this change, it's come down now to 1.48. So data centers are being built more efficiently and the government is driving this change and the specification in the rules, which is a great thing for us because more efficiency means more spend, more granular levels of requirement to be able to get access to that information. And it's all supported by a net-zero infrastructure. Globally, this is important. Globally, the average PUE for data centers globally is 1.55. What does that mean here in Australia? We're actually building [ 1 of 2 ] things. We're either building data centers more effectively, more efficiently in Australia than we are in some other environments or our climate means that we don't have to cool it as much as what some of the other environments. When you talk about Malaysia and Singapore and some of those environments, where data centers have been strong, it's warmer. It means you have to cool a lot, and so it uses a lot more electricity to cool. So -- and it's one of the reasons why Melbourne and Victoria has been so strong in the data center space is because of the cooler environment and it reduces the need to cool those data centers. Pipeline momentum. A couple of years ago, we invested in what we called a Strategic Solutions Team. What is a Strategic Solutions Team? It is a team that don't have a customer base. They are working with consultants. They are working with end users. They're identifying projects that are coming up in a window of 12 to 3 years away. driving demand. We had not done this and some of our competitors, who I won't name today to give them any airplay have been doing this for 20 years, but it's a massive opportunity and nobody else other than this one competitor of ours has been working in this space. We invested in putting a team into here with early engagement, specification, driving the demand and the opportunity pipeline. Pleased to say, right now, there is $330 million worth of opportunity pipeline that is 2 to 3 years -- 12 months to 3 years out that this Strategic Sales Team have identified, are working on, are driving engineering in their specification, driving design into there. It's $330 million that we would have been working on at the 11th hour and potentially getting caught in a negotiation in a last-minute decision, where we're driving that earlier engagement now. And of that $330 million, we ask them to weight the probability of us being successful on those projects and weighted, that there's $70 million worth of opportunity that we believe that we will be successful on that $330 million worth of opportunity that we probably wouldn't have identified without this team. So is it paying for itself? Absolutely, it's paying for itself. And into the future, it will pay for itself in space. And enhanced 2026 growth visibility supported by diversified projects, conversions across multiple group businesses. With the CMI business, with the EX business, with the Addelec business, more than ever, we are seeing synergy realizations. I know that the other day, EX Engineering placed an order on CMI for cable for $160,000 that for the last 8 years, they have been buying from our competitor, Prysmian. I know Addelec now is using CMI as a standard approach now for all of its cable procurement. The next slide, I'll talk about a project down here at Darling Harbour, where the contractor was FIP, which is owned by a guy by the name of Frank Pirreca, and IPD was successful in all the power distribution, and we were able to pull the cable through for CMI, which was upwards of over $1 million worth of cable. The synergies between the organizations are really starting to take effect. Slide 13, just to give you some context of the projects and the scale and the size that we're working on, I mentioned Amazon, obviously, the ongoing supply of power distribution with the addition of busway now. Never ever put that up there for Amazon because we've never sold it to them before. We have got our first Amazon data center, where we've got our busway into there, and we are well placed to get that into the future. These little white droppers coming down into here would be attaching to the busway up above it and dropping down to provide the power into the IT sector and supporting hyperscale facilities with that $26 billion growth sector I mentioned before. Mirvac, the Harbourside development. This one here was actually the Darling Harbour redevelopment that I just spoke about a minute ago. We sold the cable through our CMI business. We've done the main switchboards through a company called Trivantage, which is down in Melbourne, and we've done the distribution boards through FIP up here in Sydney. It's a marquee project. It's certainly starting to come up out of the ground now, and we've worked with all of the key stakeholders there and not only got IPD in there, but got CMI in there as well. The Addelec business has secured a turnkey HV electrical services contract with Sydney Airport, obviously strengthening our resilience around that transportation hub with regards to the Addelec business. Our efficiency in the Addelec business, when I talk about the use of our trades people and the skilled people we've got in our organization, one of the drains on our profitability in this Addelec business last year was the use of those contracting, those skilled labor. Pleased to say that we're really doing really well there this year from a usage perspective of those resources, and that's going to underpin a much better result for Addelec this year as well. The fish markets down here, the redevelopment of the fish markets. That diagram there is what's called a variable speed drive. It drives motors. It can drive conveyors, it can drive pumps, it can drive basically anything and it can do that. It brings a level of energy efficiency to any site. We sold 130 of these variable speed drives for an advanced HVAC, which is heating, ventilation and air conditioning for the fish markets. Importantly, why did they choose our product? Because we were able to achieve up to 30% energy savings through a smart system integration. So we talk about the tech pack of our vendors, a clear example of where we're able to differentiate from our competitors. An optical research center, this was actually one that was called [indiscernible] I think it's called at Silverwater. They're making the lenses and doing it out of Silverwater over there. What we were able to do there was what's called an IPD Optimise Energy platform. It's not just hardware. So it's devices that will capture it, but we're an on-prem software solution, where we're able to bring that data into there, create a graphical user interface for the customer to be able to show them their energy efficiency and their usage through that facility. And we are able to deliver the power distribution in there as well, improving the energy efficiency and the operating performance of that facility as well. This last one here is a bulk handling company. It's CBH, which is one of the biggest 3 grain providers that's a co-op, one of the 3 biggest grain providers in the country. The EX Engineering business had a product, which is called DEXEN, which is an enclosure system that fits really, really perfectly into these combustible type environments, particularly in grain. And we delivered a lot of those enclosures for a large hazardous area facility in that CBH facility across multiple sites. It's a scalable custom enclosure, which is built specifically for heavy industrial usage, and we intend to, as EX Engineering moves to the East Coast in January, expand that on to the East Coast with people like GrainCorp, who are big over here on the East Coast, certainly in New South Wales and Victoria. Slide 15, trading update and outlook. I can see everybody's excitement on their face when I get to this slide. Slide 16. So resilient markets and a growing pipeline reinforce confidence in our business. Guidance is obviously based on unaudited management accounts for the first 4 months and our management forecast for November and December. There are certainly encouraging signs of recovery, certainly in the area of commercial construction and resilience across our end markets with sustained positive momentum observed across all of our businesses, all of our businesses, all 4 of our businesses. Earlier investments made into CMI's longer-term growth strategies are really starting to generate tangible benefits. When I spoke at our last roadshow, I called out how excited I am about the changes we've made and the proactive initiatives we put into the CMI business and the benefit that will have. It is certainly starting to pay benefit in space. Underpinned by a stronger order book growth, the group's current opportunity pipeline is well positioned for growth through 2026. If we talk about EBITDA, our previous result in the '25 financial year for the first half was $23.6 million. We're guiding a range of $24.8 million to $25.3 million, which is 6.1% at the midpoint. A lot of you know the history of IPD, and I'll allow you to draw your own conclusions there, but at 6.1% growth there at the midpoint for that EBITDA -- in that EBITDA area. At an EBIT level, $20.2 million was the prior comparative period. We're guiding $21.1 million with a range to $21.6 million and 5.7% growth there. I think the difference between the EBITDA and the EBIT is association with lease costs, Jason, correct me if I'm wrong.

It's a bit of difference in [indiscernible] cost between the 2 periods.