Jumbo Interactive Limited (JIN) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and I'd like to warmly welcome you to the 2020 Annual General Meeting of Jumbo Interactive Limited. My name is Susan Forrester, and I am the Chair of Jumbo. This year, we are conducting the AGM through a virtual meeting platform provided by our share registry, Computershare, in conjunction with the Lumi meeting management platform. The natural physical meeting this year has been obviated by temporary regulations allowing virtual meetings due to the continual developments in relation to COVID-19 with restrictions on meeting sizes, travel and other considerations, including the health and safety of our shareholders and company employees. Among other things, we hope that by holding a virtual meeting will encourage greater participation and engagement of our shareholders this year and will be much easier for you to attend. If we experience any technical issues today, a short recess or an adjournment may be required depending on the number of shareholders being affected. If this occurs, I will advise you accordingly. Notice of the Meeting has been duly given and the meeting has been properly convened. The requisite quorum being 2 shareholders in person, by proxy, attorney or corporate representative is present. So I now formally declare the meeting open. The agenda for our meeting today will be as follows: introductions; Chair's address; CEO's address; formal business, which includes consideration of the resolutions. Voting on the resolutions will be conducted by way of poll, and I now declare that voting is open on all resolutions. Shareholders attending the meeting online are able to cast their vote using the electronic voting medium once their online registration is validated. Votes can be lodged for any of the resolutions from now until voting closes after all resolutions have been put to the meeting. To vote, please go to the voting icon where the resolutions will be displayed on the screen and then select for, against or abstain and simply select one of the options. There is no provision to hit the Submit or Enter button once the vote is formally recorded. Now that you have the ability to change your -- note that you do have the ability to change your vote in need up to the time voting closes. In need, please refer to Lumi online meeting guide, which is available on the investor voting platform, as well as Jumbo's AGM site. Shareholders can ask questions at any time online through our virtual meeting website. [Operator Instructions] Please also note that your questions may be moderated if we receive multiple questions on one topic and amalgamate it together. Also, some questions might be held over until the general business section. Finally, due to time constraints, we may not be able to answer all questions during the meeting. And if this happens, we will answer them in due course via e-mail or posting a response on our website. Shareholder questions received prior to the meeting will be addressed during the meeting at the relevant time. Please note that only shareholders, proxy holders or authorized shareholder company representatives may vote or ask questions. I'd now like to introduce my fellow directors. Firstly, David Barwick, who's been an Independent Non-Executive Director for some 14 years and Chairman for most of that time. David is also a member of our 2 Board committees. Bill Lyne, Independent Non-Executive Director, who was Chairman of our Audit and Risk Committee and a member of our Nomination and Remuneration Committee as well as our Company Secretary. Giovanni Rizzo, who was appointed at the beginning of 2019 as an additional director to add value to the Board. Since 1st of July, he has been Chair of the Nomination and Remuneration Committee and a member of the Audit and Risk Management Committee. Sharon Christensen, who was appointed September '19 to add new skills to our Board. Sharon has 30 years of regulatory and legal experience and is a research leader in regulatory responses to digital innovation. And lastly, I introduce Mike Veverka, Executive Director and CEO for some 20 years, who was the Founder of our business and well-known to many of you, I'm sure. Also with us in the room in person or online, we have our senior staff, David Todd, our CFO; Xavier Bergade, our Chief Technology Officer; Brad Board, our COO; and Nikki Searby, our Legal Counsel and Investor Relations. And we also welcome online our service providers, Kim Colyer and Sam Johnson, from our auditors, BDO; and [ Luis Rimelo ] from share registry, Computershare. I'll now move on to the Chair's address. As your chair, it's my position which I'm privileged to hold, is to lead and work with my colleagues on the Board to provide sound governance at Jumbo, drive optical performance as well as diligent stewardship of the company's strategy and culture. One of the key reasons I accepted the honor of leading Jumbo's Board was not only because I recognized the achievements of the company since was founded in 1995, but also because of the significant opportunities I see for the business, some of which I will touch on later in this address. The Board and management team at Jumbo have offered gracious support when I assumed my responsibilities, and I've been delighted how all of the people I have met are united by a love of technology and are committed to harnessing this to engaging, entertaining experiences for our customers. Following the Lotterywest announcement, I signaled my commitment to the company by purchasing 10,000 shares. I've also invested significant time and energy engaging with as many stakeholders as I could before this meeting, including the broader community in investments, proxy advisers and others to gain a better understanding of the company and its important position in the communities in which it operates. Over the last 7 weeks, I've been able to form some initial impressions about Jumbo's challenges and opportunities, which I'd like to share with you now. In terms of competition, we operate in an intensely competitive industry where our existing and potential customers are continually invited by other providers of digital entertainment to play and win prizes or money. We welcome this competition mainly because it compels us to constantly improve and develop new ways to engage with our customers. We also mitigate potential competitive threats to our business, not only through innovation, but we're also entrenching new and long-term commercial agreements, for example with Tabcorp and the WA government, which have boosted our competitive position in recent months. In terms of regulation. Our industry is subject to stringent scrutiny from our regulators, which we've also welcome as we understand the clear links between regulation, trust and value. We must offer our customers unwavering confidence in our integrity. This is nonnegotiable, and our customers' trust does add value to our business. Strategically, we also seek a level regulatory playing field so we will continue to advocate for this where we believe it is in the best interest of the customers. In terms of social impact. Since December 6, 1916, over a century ago, when the Queensland Patriotic Fund sold tickets the Queensland's first Golden Casket, it's been generally accepted that lotteries deliver a clear net benefit to their community. Our customers are primarily motivated by a dream of winning a large prize and often associate lotteries with the return of proceeds to the community through charities or government spending programs. So while our digital lottery games are not connected with problem gambling issues, we remain vigilant to ensure compliance with responsible gambling principles. Our range of digital platforms allows us to proactively contact potentially vulnerable customers and offer support, which sets us apart from competing providers of digital entertainment. I'd now like to touch on the opportunities. As I engaged with stakeholders over the last 7 weeks, I was struck by the general support for our business as many stakeholders pointed to our track record of being an entrepreneurial innovator, our strong balance sheet and our leading position as a digital retailer of national jackpot lottery and charity lotteries. That said, our business still has significant opportunities, including expansion. Compelling opportunities exist for our growth in many jurisdictions, not only here in Australia but also overseas in the U.K. and North America, where we are key to advance our operations. We remain diligent on your behalf to ensure that expected returns from any expansion comfortably outweigh their risks. In terms of capital management, one of the key attractions of Jumbo, most obviously for investors, but also for our existing and potential counterparties, is the strength of our balance sheet, built up over many years. Over the coming months, the Board will revisit our capital management strategy to consider our dividend policy and allowing our growth strategies and various competing needs of the business. This is a key issue I will be addressing with our Board and senior management as we approach our company's strategy day later this year. Tabcorp's sell down of its stake in Jumbo following confirmation of the 10-year license enabled us to encourage new investors onto our register and some of our long-standing supporters increase their holdings. We welcome their support as we explore growth opportunities for our business. In terms of governance. When the Board offered this role to me, it was clear there is a real desire for Jumbo to act, look and feel like an ASX 200 company, which is very much in our short-term sights. This will require a proactive plan to raise the bar and invest in people and resources to lift our standards. It is well-established that a focus on effective governance will contribute to shareholder value and create more opportunities for Jumbo to prosper. Jumbo is committed to operational excellence in a sustainable and responsible way while creating lasting value for shareholders. I undertake as Chair to leave this program with continuous improvement by better explaining our approach to governance, articulating our commitment to the high standards of ESG. For example, our carbon footprint is light, and we generously support many of the communities in which we operate. You'll see from the comprehensive explanation in our annual report that we have modern slavery policies in place, which help guide our operations and commercial partnerships. We have a simple supply chain and seek only to work with suppliers who are aligned to our values. In 2020, we established a Whistleblower Policy with an external hotline for support. So as we leverage our superior technology, create more opportunities for our customers to engage with us, capitalize on options for measured growth, which continues to enhance our competitive position and strengthen our governance foundations, we expect that Jumbo will reenter the ASX within 2021. A few comments about our Board. Of all of Jumbo's achievements, many have been posted while David Barwick, who retires from our Board today, was our Chair. In the 13 years since David's appointment as Chair in November 2007, when Jumbo shares were trading at $0.26, Jumbo's share price has grown approximately 32% annually. And on behalf of the whole company, I acknowledge and thank David today for his leadership. Meanwhile, Board renewal remains a continual focus at Jumbo, and you will have seen that we welcomed 2 new directors, Giovanni Rizzo and Professor Sharon Christensen in 2019. Today, as well as this meeting being asked to consider my election, Giovanni is seeking reelection, and the Board recommends you vote in favor of this. Until recently, there was no female representation on this Board. I'm pleased to note that the conclusion of this AGM, should you support my appointment, we will have gender parity across 4 nonexecutive directors which demonstrates our commitment to renewal and good governance. And finally, I'd like to announce that Mr. Lyne has tendered his resignation. Mr. Lyne has served the company and its shareholders for almost 11 years, having been appointed a Director on the 30th of October 2009. Bill has played a key role in Jumbo's success over the last years and provided governance and wisdom to a young, fast-growing company in his role as Director, Chair of the Audit and Risk Committee and Company Secretary. On behalf of the rest of the Board, we thank Bill for his concerted efforts and wish him well. He will continue to serve with us until the 31st of March 2021 or earlier, while the process of Board renewal is conducted following our strategy day. Before I hand over to Mike, and even though I've only been at Jumbo for just 7 weeks, I'd like to offer my deep gratitude to Mike and his team of 160 for their steadfast commitment during this unprecedented year. Whether they are our workforce here in Brisbane or whether working remotely because of our new hybrid working model, the contribution of our people has been invaluable to ensure that our business continues to operate smoothly and to deliver entertaining and engaging experiences for our customers. Due to my recent appointment, I focus today on what I've heard from stakeholders and our plans to raise the bar in terms of corporate governance and responsibility. In coming months, we'll have more to say about our updated strategy and our performance plan for the next 2 years. With that, I now hand over to Mike to present a more detailed review of the company's operations. Thank you, all, and I look forward to taking questions during the meeting.

Thanks, Sue, and thank you to all shareholders attending today. My presentation will last approximately 10 minutes, and we'll recap the FY 2020 results, provide an update for the first quarter as well as discuss the key drivers and opportunities for Jumbo. Can I have Slide 1, please. Jumbo's pure digital model really shone brightly through the COVID period since March 2020. With no supply chain or physical delivery issues to contend with, we're able to continue business as usual without interruption even as our staff transition to working from home. Home confinement meant players could not get to the store, which drove them online. The graph that you see shows monthly sales, and it was around March this year when COVID hit, around the same time that we had an $80 million Powerball, as shown by the middle red bar on the graph. I remember it well as it was one of our customers that won the $80 million Powerball, and I got to speak with the 72-year old gentleman while in home confinement. From then, monthly sales rose steadily. And 4 months later in July, when the next $80 million Powerball came around again, we recorded a 26% increase over 4 short months, quite a remarkable result, represented by the red bar on the right. In fact, sales in July came into a whisker of beating our record month, back in September 2019, which is the red bar on the left, when the Powerball peaked at $150 million. So imagine what sales would have been like with the Powerball climbed higher than $80 million. Slide 2, please. In our trading update for the first quarter, we saw a significant improvement in underlying performance with consistent growth across all jackpot levels: a 36% increase over 12 months for small jackpots under $15 million; a 26% increase over 4 months at the $80 million level, as mentioned a moment ago; and a 64% increase over a 10-month period also at the $80 million level. This resulted in only a 2% drop in revenue to $22.3 million, despite a 38% drop in the number of large jackpots. Remember that the first quarter is cycling off a very high first quarter a year ago when the Powerball reached $150 million to -- so to arrive at a revenue that came within a whisker of beating our results a year ago was a significant achievement. I'd also like to highlight an 80 basis point lift in margin, which is our revenue over ticket sales, to 22.6% (sic) [ 20.6% ] as we started to see a positive contribution from our new businesses, including Gatherwell in the U.K. and our Powered by Jumbo SaaS business. Slide 3, please. Now we have certainty to 2030 with the new 10-year agreement with Tabcorp and a 10-year binding term sheet with Lotterywest. This was Jumbo in a good position in Australia to benefit from the industry tailwind of increasing Internet penetration. The graph on the right shows the Internet penetration, which is a percentage of ticket sold online over the past 4 years and currently sits at 28%, which is 19% higher than a year ago. Slide 4. I'll now just revisit the COVID-19 effect in a bit more detail. I've already discussed the shift online due to home confinement, and I expect the trend to continue even as restrictions ease. Once people set up an account with us, the app is really very easy to use and offers a host of advantages. So we find that people generally keep playing online. We also recorded a spike in the age of our customers, as shown in the graph on the bottom left. This 24% spike in our 65-plus demographic shows how older people are also shifting online. This is significant as the older cohort tends to spend more, which is demonstrated by the graph on the bottom right. Also, overseas, we saw many lotteries struggled during COVID because they had no online sales channel. Charity is also struggling because other funding -- fundraising activities such as dinners or fun runs have also been impacted. This has really given them a wake-up call and they are making a priority to build their Internet channel. Slide 5. Jumbo, of course, is in the business of providing Internet channels via our Powered by Jumbo software-as-a-service business. And we expect this business to continue its growth as lotteries and charities around the world move online. We now have our 2 largest clients 100% operational, Mater Lotteries and the Endeavour Foundation, which became operational this month, ahead of target. Our other 3 clients are due for completion later this year. Slide 6. The underlying growth we are witnessing is not just a COVID thing. It has been going on for years. Jumbo's consistent innovation has delivered more features and a better player experience. In past years, we have delivered growth through features such as the Lotto Party, super combos and charity games. This year, we've been focusing on advanced data analytics to deliver growth. By understanding our customers more by analyzing data, we are able to give them a better experience, which in turn builds more engagement and loyalty. This has really been evident in the low jackpot weeks when we've managed to keep our customers engaged. Advanced data analytics has also helped us find the small things, which often make a huge difference. One of our software tools is called the Rage Click detector, which brings to our attention when a player gets confused and starts hitting their mouse up and repeatedly in frustration. When we're able to -- we're able to simply reposition a simple button to a more obvious location and that simple change alone brought in $0.5 million in lost sales over 6 months. So sometimes the little things matter the most. Slide 7. So in conclusion, our outlook is to continue building our competitive position through further deployment of data analytics to improve customer engagement; leveraging our new long-term commercial partnerships with Tabcorp and Lotterywest; capitalizing on compelling expansion opportunities, both in Australia and overseas; harnessing the powerful industry tailwind of increasing Internet penetration in Australia, a trend that we expect to continue. Slide 8. And Slide 9. Before I finish, I'd like to acknowledge the immense contribution made to the company by David Barwick, who retires today after 14 years of service. Since 2006, David has helped steer the company through its early growth phase into the company it is today, poised for further growth. David, your experience and leadership has been invaluable, and I personally want to thank you for your guidance. I'd also like to thank the efforts of the entire Jumbo board, and in particular, the Jumbo staff that have really adopted well during home confinement and kept reaching their targets. Thank you. Slide -- next slide, please. And the next slide. And I can now take some questions.

We've received a few questions. We've got 2 questions from Eagle Eye Equities, which I'll combine into one. What has been the driver of the revenue margin uplift from 19.8% to 20.6%? And is the quarter 20.6% before or after the 1.5% on subscription price service fee payable to Tabcorp?

It's after the service fee, the new service fee that comes from Tabcorp. And the main driver is the increase in contribution from the other parts of our business. Our SaaS business is a high-margin business, it's only really just starting to get going. But we've had the benefits of Mater, and now we also will have the benefits of Endeavour in that business as well as Gatherwell, which is also a higher-margin business. So as these businesses are making a bigger contribution to the business, we expect to see that margin increase.

Next question is from [ Mr. Edmond Karu ]. With the Gatherwell subsidiary in the U.K., there are many heritage railways that despite receiving national luxury runs still need more funding to see them over the COVID-19 situation. Is Gatherwell looking at these sorts of charities that are distinct from local governments over there as a potential further source of new luxuries and the result and facilitation that Jumbo and Gatherwell can bring?

Okay. I don't know whether they're looking at those in particular. But Gatherwell has expanded with a new website called onelottery.co.uk, and I urge you all to take a look at that. And that is a new site that will encompass charities that don't fit into the local authority or the schools, which Gatherwell is more well known. So yes, Gatherwell is looking at other charities that don't get into those first 2 groups via the onelottery.co.uk endeavor. And early indications have been very positive by that.

We have a final question from Velkov Funds Management. Can you comment about the company's North American ambitions?

Yes. North America is an exciting place as far as the Internet lotteries are concerned. It's really only just beginning. It's lagging the rest of the world. There's been a lot of advances in terms of political loosening up, political changes for sportsbetting. And that's starting to become evident in lotteries as well. So we have increased our efforts in the U.S. We're featured quite heavily in a recent event only last week, the PGRI event, which would have been held in New York, but that was also a virtual event. Jumbo gauged prominently on that as we were explaining to lottery directors the benefits of our system, our experience and so forth. So yes, the North American market is very important to us. It's the single largest market in the world in terms of lotteries, and it's an important target for us and making it to get all everything that we got.

No further questions?

No further questions for Mike.

Thank you very much, Mike.

I'm now going down to the formal part of today's agenda. Ladies and gentlemen, the first item of ordinary business is to consider the company's annual financial report. The availability of the financial statements and the director's and auditor's reports for the year ending 30 June 2020, being part of the annual report was advised in writing to all shareholders and was posted on the company's website when lodged with the ASX some weeks ago. Under the Corporations Act, the annual financial report is now formally presented to you, the shareholders, at this meeting. Does anyone wish to make any comments or ask any questions online in relation to the financial statements or the audit? If questions are appropriate, our auditors representative is available to respond. It doesn't appear to be any further questions.

We do have a further question from Eagle Eye Equities. Is there a component of SaaS TTV in the $108 million TTV quarter?

Sorry, pan that question again.

Is there a component of SaaS TTV in the $108 million TTV reported?

Yes, there is. It's contributing. So it's visible in the TTV and the revenue. We haven't singled it out in the quarter, but we can expect some further details on our coming half year.

Just refresh our questions. Yes, that's all the questions we currently have. Thank you, Mike. Thank you. We'll now move to consider the resolutions in the Notice of Meeting. As I mentioned earlier, all resolutions will be decided via poll. The poll will be conducted by Computershare following online voting. Each resolution will be put on screen, and the slide will also show the direct votes and proxy votes received. Please note that the open proxy votes, which, I, as chair hold, will be voted in favor of all resolutions. All resolutions are ordinary resolutions requiring only a simple majority to be passed, although there were some special resolutions requiring the first -- regarding the first resolution, which I'll talk about in a moment. So moving to resolution 1, our remuneration report. Shareholders, the first resolution today is one which requires your approval by way of an advisory resolution that is not binding on directors. So I now formally propose the resolution that the remuneration report for the year ended 30 June 2020, as set out in the Director's report, to be adopted. The resolution is designed to allow shareholders the opportunity to voice any opinions they have and to vote on the remuneration report, coming directors and senior executives of the company, which is part of the annual report. However, if there are more than 25% of votes against this resolution, the company will receive a first strike. And if this happens a second year in a row, a second strike is recorded, and the company then has to put a resolution to shareholders to call an Extraordinary General Meeting to vote on the Board of Directors. Does anyone wish to make any comments or ask any questions online in relation to the remuneration report or the resolution?

We've received 3 questions from the Australian Shareholders' Association. The first question, in relation to the remuneration report, we know that despite [ UPAT ] only rising 1% for the year versus the target of 6%, which is the main SEI financial metric, 50% of STI was paid. Going forward, would you consider only paying STI if the financial hurdle of the [ UPAT ] growth was met?

Thank you very much, Nikki. I'm going to ask Giovanni Rizzo, the chair of our Remuneration and Nominations Committee to answer that question.

Thanks, Sue. And thanks for the question, Steve. And I really appreciate your engagement with the Board this year. With respect to this question, just to give you a broader view of our STI. 50% is based on pure financial performance, as you've indicated, with the other 50% being based on non financial performance and on KPIs that the Board and the committee developed at the start of the financial year and basically put in place to ensure that management are focused on the initiatives that the Board and the company want for the year ahead. We do not believe basing STI and also financial performance alone contributes to the future growth of Jumbo. Our current nonfinancial aligned KPIs are based on diversifying the revenue stream of Jumbo into the important charity lottery segment through the provision of software and services and instilling the culture of compliance, team development and good corporate governance. We believe that by setting targets outside of existing financial performance, we will deliver increased shareholder wealth into the future.

Thanks, Giovanni.

We have second question from the Australian Shareholders' Association. In relation to the current ability of the Board to use discretion to award options to management and family members of management without any specific performance criteria, would you consider removing the structure going forward?

Again, I'm going to ask Giovanni to answer that question.

Thanks, Sue. Yes, Steven, so thanks for that question, again. And as a Board, we will not be exercising discretion in the future in terms of options, as indicated both in our FY '19 and FY '20 annual reports. Options are no longer form part of our remuneration framework but short-term incentives and long-term incentives are now based on performance rights. And I can confirm that no options will be looked at going forward.

Thank you, Giovanni. I believe we have one last question.

Final question from the Australian Shareholders' Association. Going forward, would you consider simplifying the hurdle for the awarding of LTIs from the current complicated share price versus all of this metric to something similar in its intent, but more easily understood and measured, like total shareholder return.

Again, Giovanni is going to answer that question.

Thanks. So the extraordinary different options we're developing are for our long-term incentive scheme, and we settled on the current hurdle that we have in place. The Board's intent was to ensure executives were rewarded in direct alignment with actual shareholder returns and an absolute share price hurdle was therefore introduced. The Board's view was that an absolute share price hurdle is more challenging than a typical relative total shareholder return approach, as total relative shareholder return can vest even when a company's share price decreases. Our approach requires Jumbo to continuously outperform the broader Australian ASX 300 Index, including dividend performance, thereby rewarding executives if shareholders enjoy returns greater than the ASX 300 long-term growth.

Thank you, Giovanni. Now just check, we have no further questions?

No further questions.

Thank you. All right. Please now select either for, against or abstain for resolution 1 on the voting platform. But please note that this resolution, none of the directors or senior executives who hold shares personally or through their related entities are allowed to vote. I'll pause for a moment for voting. [Voting]

Let's move to Resolution 2, the reelection of Giovanni Rizzo as a Director. Shareholders, the second resolution today is for you to consider the reelection of Giovanni Rizzo, who retires by rotation. I now propose that Giovanni Rizzo, who retires by rotation in accordance with Rule 14.1 of the constitution and ASX Listing Rule 14.4 and being eligible, offers himself for reelection, to be reelected as a Director. Does anyone wish to make any comments or ask any questions online in relation to the reelection of Giovanni?

We have no questions.

Thank you, Nikki. We have received the following -- Okay. Thank you. Please now select either for, against or abstain for resolution 2 on the voting platform. [Voting]

Let's move to resolution 3, the reelection of Susan Forrester as a Director. Shareholders, the third resolution today is for you to consider my election, and I was appointed to the Board during the year. So for this item business, I will hand to the chair over to Professor Sharon Christensen.

Thank you, Sue, and good afternoon, shareholders. I now propose that Susan Forrester AM, who was appointed as a Director since the last Annual General Meeting of the company and who retires in accordance with clause 38.2 of the company's Constitution and ASX Listing Rule 14.4 and being eligible, offers herself for reelection, be and is hereby reelected as a director. Does anyone wish to make a comment or ask any questions online in relation to Sue's election?

We've received no questions.

Thank you. We've received no questions. So would you please now select either for, against or abstain for resolution 3 on the voting platform. Thank you. I'll now hand the chair back to Sue. [Voting]

Thank you very much, Sharon. Let's move to resolution 4, the issue of STI management rights. Shareholders, the next resolution relates to the issue of short-term incentive management rights on the company's new remuneration framework, which was introduced to shareholders at last year's AGM and is detailed in the remuneration report. The deemed issue price of these rights and all others being considered today was calculated as the weighted average for the 10 days up to June 30, 2020, in terms of the KMP remuneration framework. I now propose that for the purpose of ASX Listing Rule 7.1 and for all other purposes, the company be authorized to issue 13,191 shares, STI management rights at a deemed issue price of $9.95 per share to key management personnel of the company as the short-term incentive component of their remuneration for the financial year ending 30 June 2020 under the company's remuneration framework on terms and conditions set out in the explanatory memorandum. Does anyone wish to make any comments or ask any questions online in relation to that resolution?

We've received no questions.

Thank you, Nikki. Thank you. Would you now please select either for, against or abstain for resolution 4 on the voting platform. But please note that this resolution, none of the senior executives who hold shares personally or through their related entities are allowed to vote. [Voting]

Let's move to resolution 5, the issue of LTI management rights. Resolution 5 relates to the issue of long-term incentive management rights under the company's remuneration framework. I now propose that for the purpose of ASX Listing Rule 7.1 and for all other purposes, the company be authorized to issue 52,764 shares, the LTI management rights at a deemed issued price of $9.95 per share to key management personnel of the company as a long-term incentive component of their remuneration for the financial year ending 30 June 2021 under the company's remuneration framework on terms and conditions as set out in the explanatory memorandum. Does anyone have any comments to make or questions to ask in relation to this resolution?

We've received no questions.

Thank you, Nikki. Thank you. I now ask you to select either for, against or abstain for resolution 5 on the voting platform. But please note again that for this resolution, none of the senior executives who hold shares personally or through their related entities are allowed to vote. I'll pause for voting. [Voting]

Let's move to resolution 6. This involves the issue of short-term incentive director rights to Mike Veverka on the remuneration framework. I now propose that in accordance with the provisions of ASX Listing Rule 10.11 and for all other purposes, the company be authorized to issue 10,050 shares called the STI Director Rights at a deemed price of $9.95 per share to Mr. Mike Veverka, CEO and Director of the company, as the short-term incentive component of his remuneration for the financial year ending 30 June 2020, under the company's remuneration framework on terms and conditions as set out in the explanatory memorandum. Does anyone wish to make any comments or ask any questions in relation to this?

We've received no questions.

Thank you, Nikki. And I ask you to select either for, against or abstain for Resolution 6 on the voting platform, but ask that for this resolution, neither Mike or his related entities are allowed to vote. [Voting]

Resolution 7 relates to the issue of LTI Director Rights. The last resolution today related to these, which are director rights to Mike Veverka for his long-term incentive under the remuneration framework. I now propose that in accordance with the provisions of ASX Listing Rule 10.11 and for all other purposes, the company be authorized to issue 40,201 shares, the LTI Director Rights, at a deemed price of $9.95 per share to Mr. Mike Veverka, CEO and Director of the company, as his long-term incentive component for the financial year ending 30 June '21 under the company's remuneration framework on the terms and conditions as set out in the explanatory memorandum. Does anyone wish to make any comments or ask any questions?

We've received no questions.

Thank you, Nikki. Please now select for, against or abstain for resolution 7 on the voting platform. But please note again that for this resolution, neither Mike or his related entities are allowed to vote. [Voting]

Ladies and gentlemen, that concludes the resolutions on the Notice of Meeting. In a couple of minutes, I will close the voting, please ensure you have cast your vote on all the resolutions, and I'll now pause to enable your time to finalize your votes. [Voting]

Voting is now closed. Computershare will now finalize the poll results, which will be announced to the ASX later today. So I'll now turn to general business and ask if anyone has any further questions for any of the directors.

We've received no questions.

Thank you, Nikki. So ladies and gentlemen, that concludes the business of the meeting. I thank you for your attendance and your ongoing support of the company. And I now declare the meeting closed.