McPherson's Limited (MCP) Earnings Call Transcript & Summary

Good morning, everyone. Welcome here, and welcome to those that are participating online. And thank you for joining us for the 2024 McPherson's Annual General Meeting. My name is Ari Mervis, and I'm the Chairman of the Board. I've been informed that we have a quorum present, and so I'll formally open the meeting. Firstly, I would like to acknowledge the Gadigal people of the Eora Nation, who are the traditional custodians upon the land upon which we are meeting today. I would like to pay my respects to elders, past, present and emerging and to all First Nations people who are joining and attending the meeting online. Secondly, in attendance and in the front of the room are my fellow Non-Executive Directors of the McPherson's Board, Helen Thornton, Alison Cook and Jane McKellar. And we also have our Chief Executive Officer and Managing Director, Brett Charlton, who will address you shortly. From management, we have Mark Sherwin, our CFO; and also our General Counsel and Company Secretary, Craig Durham. And also present and in attendance today are members of our senior executive leadership team who would welcome the opportunity to meet and chat with you after the meeting. I'd also like to introduce Paddy Carney and Eva [ Guoru ] from PwC. Paddy is our lead external audit partner, and she'll be available later in the meeting to take any questions about the conduct of the audit, the preparation and content of the auditor's report, the accounting policies adopted by the company and the independence of the auditor. Chris Stojcevski, representing Computershare, is also in attendance, and Chris will act as your returning officer for today's votes on the resolutions at today's meetings. An outline of the agenda for today's meeting is now on the screen. Following some administrative matters, I will address the meeting, and then Brett Charlton, our CEO, will speak in more detail about the company's performance and strategy. The formal items of business will be covered at today's meetings are set out in the Notice of Meeting, which I will take as read. With one exception, I intend to introduce all formal matters on the agenda item. And after each item, we will pause briefly to take any questions from the room and online. For resolution 1, which is a resolution relating to my reelection as a Non-Executive Director of the company, Helen Thornton, the Chair of the Audit Committee, will act as Chair of the meeting and present that resolution to the meeting and take any questions relating to that resolution. After all formal resolutions have been put to the meeting, we will again pause for any questions. I will now hand over to Craig Durham, our General Counsel and Company Secretary, to cover some of the administrative items for today's meeting, after which I will address the meeting.

Thank you, Ari, and good morning to everyone. I will now briefly explain how questions may be asked at today's meeting and also the mechanism for voting on the resolutions, which will shortly be put to the meeting by the Chair. To assist, you can follow what I'm explaining on the slides, which will be displayed on the screen. [Operator Instructions] Shortly, the Chair will declare voting item -- voting open on all items of business. At that time, the resolutions and voting options will appear on the screen. To cast your vote, simply select one of the options. Your vote is automatically recorded, and there is no need to press a submit or enter button. You can change your vote up until any time the Chair declares voting closed. The Chair will give a warning before the poll is formally closed. In-room attendees wishing to ask a question can raise their hand. Before asking your question, if you are a shareholder, please state your name. If you are attending as a proxy for a shareholder, please state the name of the shareholder on whose behalf you are attending today's meeting. In relation to the keypads you were given upon your arrival and registration today, once voting opens, in-room attendees will be presented with the list of today's resolutions on their voting keypad. Use the track ball to highlight the resolution you wish to vote on and press the green square to confirm. The resolution text will appear and to bring up the voting options, press the green square. Press 1 to vote for the item, press 2 to vote against the item or press 3 to abstain. To move on to the next item, press the green square or to return to the full list of items, press the yellow -- sorry, the red triangle. If you have any questions about the use of the keypads, Luke Browning from Lumi is here to assist you. Thank you, and I'll now hand back to the Chair.

Thanks very much, Craig. I will now declare voting open on all items of business. This means that you can now vote or change your vote at any time during the meeting up until when I declare the polls closed. I will provide a warning before moving to close the meeting. Note that the results of the voting for all resolutions today will be given to the ASX shortly after the meeting. I will now turn to my remarks in relation to the company's FY '24 financial year. Financial year 2024 has been a significant and transformative year for your company. I want to use my address this morning to provide some context for the changes currently underway at McPherson's and to explain how your Board is thinking about the future. Throughout its 160-year history, your company has pivoted to take advantage of prevailing market conditions and customer needs to ensure that McPherson's name and legacy endured as a trusted manufacturer and supplier of Southern Australia's best-known brands and products. However, over the past few years, McPherson's has not delivered to the expectations of key shareholders. The company had become overly dependent on brands and joint ventures that were not aligned to the stated strategy of competing in the health, wellness and beauty categories. Additionally, McPherson's was overly exposed to bags, wraps and foils which, as a category, are susceptible to numerous variables, including commodity price cycles of raw materials, foreign exchange rates and fluctuating freight costs, which are beyond the company's control and which introduced a level of unpredictability to results. The practical reality of delivering predictable earnings growth in a business with significant volatility and changing priorities meant a continuous tension between focusing on the core business while being dependent on numerous macro factors. As a result, investment in McPherson's core brand portfolio was adversely impacted. This lack of investment compounded, resulting in a slow and steady decline in performance and intermittent noncash impairments, most recently as part of the FY '24 results. The status quo was not an option, and the Board determined that deliberate and calculated steps were needed to reset the business for the future and for improved performance. We needed to create a different business with a leaner and more nimble operation capable of generating sustainable returns to shareholders. To lead these changes, the Board appointed Brett Charlton as CEO and MD in August 2023. With Brett's arrival, the Board and management identified clear strategic priorities to unlock value. These included resetting the company's strategy, appointing a new and highly skilled senior executive leadership team and removing costs from the business. Another key decision taken was to divest the Multix brand and assets for $19 million, excluding completion adjustments, which were announced in June this year. This sale followed the completion of a strategic review of the Multix brand. At the time, it was announced that McPherson's would focus on its core portfolio of leading consumer brands, specifically in health, wellness and beauty being higher margin and higher growth categories. The sale of Multix generated additional capital to support the execution of the transformation agenda. After I've spoken, Brett will provide some more detail on the transformation underway within the business. He will also provide an update on current trading, together with some preliminary observations on the outlook of the year. Our trading performance in financial year 2024 reflected the scale of transformation underway in our current business and the important decisions we have taken to reset the business in a challenging macroeconomic environment. We also presented our results for the first time, excluding Multix, following the divestment in June 2024. These results reflect a year of significant change and material progress that has been made to transform the business to a more simplified and efficient business model. The sale of the Multix brand and assets strengthened McPherson's net cash position, and we reported a net cash position of $14.1 million as at the 30th of June 2024. Given the balance of retained losses, including the current year loss, the Board determined that it was not appropriate to pay a final dividend for FY '24. In addition to the retained loss position, the Board is mindful of the capital needs to support the business and de-risk the substantial transformation that is underway. We appreciate that this may not be a universally popular decision given McPherson's history of paying dividends. However, we are confident that this was the correct decision at the current stage of the company's journey. In light of the transformation of the business, the Board is reviewing the company's capital allocation framework, which will consider the right framework for our future needs. During the year, we also continued to refine our approach to sustainability. Earlier in the year, the company carried out an independent materiality assessment to help identify relevant environmental and social governance areas of focus. This assessment considered a variety of views from a wide audience of shareholders, customers, suppliers and employees. Some key priorities were identified, which are set out in more detail in our annual report. We believe that with our ESG approach, we can best direct our efforts in these meaningful areas to benefit our business and remain consistent with our strategy for growth. Our focus for FY '25 will be to continue our work to embed our identified ESG priorities into our operations and to lay appropriate foundations for a long-term sustainable business. In closing, I would like to thank Brett and his executive leadership team, our employees and my fellow directors, all of whom have one common purpose, and that is to see McPherson's prosper. I would also like to thank you, our shareholders, for your continued support as we take the necessary steps to transform McPherson's to become the company we all know it has the potential to be. I will now hand over to Brett to address the meeting, and thereafter, I will return to handle the formal matters on the agenda today. Brett?

Good morning, everyone, and thank you, Ari. When I came to the business in August of 2023, we identified a clear set of strategic priorities focused on a streamlined set of core brands in health, wellness and beauty, and a reshaped operating model that would better support these brands. In the past year, our new executive team, which is sitting in the front row here, have been hard at work on these priorities. In FY '24, we rationalized our brands through identifying our core and supporting brand --portfolio brands, exiting certain nonstrategic brands and ceasing private label products. We also took cost out of the business and divested the Multix brand to become a pure-play health, wellness and beauty company. The transformation of McPherson's that is underway is a major undertaking, but it is an essential one. The business has historically been capital heavy, a distribution and sales business. Technology and infrastructure across the business needed updating badly, and it has been overly exposed to factors we can't meaningfully control. Our future is as a capital-light sales and marketing business, where previously, McPherson's managed numerous suppliers of raw materials and finished products, coordinated the mass delivery and logistics and ran large-scale warehousing with national distribution, the new McPherson's must become a leaner, brand-focused organization that can make the right level of investment to promote our leading brands through our valued customers. Our business must move beyond a period of underinvestment in our brands and related capabilities and instead refocus on 3 key pillars: our brands, our customers and our people. We need to become a more agile business focused on a more favorable higher-margin product mix, which can be distributed and sold through more efficient routes to market. If we do this, then we will set McPherson's on a fundamentally different strategic trajectory and restage ourselves for the next chapter of growth in our storied history. Executing on our priorities has involved some difficult and hard decisions, starting with the restructuring we carried out a year ago to refocus the business and reduce our costs. At that time, we set out a new, more focused path for McPherson's to be a pure-play health, wellness and beauty company with 5 core brands and a portfolio of supporting brands. Identifying and driving these 5 core brands underpins our strategy for the business. These 5 brands, Manicare, Lady Jayne, Dr. LeWinn's, Swisspers and Fusion Health are our most recognizable brands. They're known by consumers across Australia and stocked in supermarkets, pharmacies and retailers everywhere in the country. They're in resilient, attractive categories, beauty tools, hair accessories, skin care, cotton, vitamins, minerals and supplements. And we see significant potential for the growth of these core brands. However, they must be supported by the right business model and increasing investments in brand-building activities. Our brands are category drivers, and that means they need continual innovation, research and development and investment in advertising and promotion and an efficient distribution model. As a part of reshaping our business model, and as Ari mentioned a little earlier, in June this year, we completed the sale of the Multix brand and assets for $19 million. This sale was preceded by the adoption of our strategy to become a pure-play health, wellness and beauty company with our 5 core brands and our portfolio of supporting brands. The sale has helped fund our transformation activities and will involve increased investment in these brands, further rightsizing for our business for the future, reviewing our cost base and assessing a more efficient distribution and route to market for our products. While divesting Multix was a major milestone in our transformation journey, we've also done a lot of work on our brands this year. Firstly, we've embarked on a significant rationalization of our SKUs or stockkeeping units to reduce our total list and simplify the organization and continuing to focus on identifying our most popular, most impactful and most profitable SKUs. We've also rationalized both logistics and formulated product suppliers to focus on reliability and quality through strategic alignment to fewer, better suppliers. Resolving supply issues across the brands, including Dr. LeWinn's and Fusion were a key priority for us last year, and I'm pleased to report that constraints have been resolved across these 2 brands. We've completed the first phase of our Salesforce software implementation, the retail execution module, designed to unlock world-class sales execution, and the second part, trade promotions management, or TPM, is now live. Both were delivered on time. Our brands are our strongest asset, and they are our strategic moat. They are in the majority of Australian households, are familiar to Australians when they shop and present high-quality solutions to their health, wellness and beauty needs. Across all of them, we need to continue to prioritize and demonstrate their points of difference, underpinned by detailed customer research and data. McPherson's has invested this year in much needed research of our customers and the market. It will unlock valuable insights for us to better inform our promotional and marketing activities. But we see a very exciting road ahead for our brands. Manicare is Australia's #1 beauty tools and accessories brand. Its points of difference are quality and expertise across more than 150 SKUs, including essential beauty tools, eyelash and now products. We are also undertaking a comprehensive pricing review, and we've stated -- we've started in-depth consumer research to determine the most attractive consumer path for the Manicare brand. Lady Jayne is Australia's #1 hair brush and accessories brand. It was established in 1928, almost 100 years old and produces a range of brushes, accessories and rechargeable electric hair styling products. Our products for Lady Jayne -- sorry, our priorities for Lady Jayne are growing the hair brush category through innovation and expanding and growing our rechargeables range. As with Manicare, we have started in-depth consumer research on the Lady Jayne brand to reinvigorate our core SKUs. Dr. LeWinn's is an Australian-made anti-aging skin care brand. Its cutting-edge ingredients and clinically tested proven formulations set it apart due to decades of innovation and remains a leader in the anti-aging category. We've implemented a new business and sustainable expansion model for China, and we are also undertaking detailed consumer research to reset the positionings for the brand. Swisspers is Australia and New Zealand's #1 cotton brand. It's a premium brand, cotton for personal and infant care. Our priorities are to emphasize our superior quality and to improve and accelerate our innovation plans for this brand. And finally, Fusion Health is a premium vitamins and supplements brand. It's Australian made and its products use ingredients from traditional Chinese medicine, often in combination with vitamins, minerals and other nutrients to blend ancient and modern wisdom. Our priorities are to strengthen its brand positioning, product ranging and distribution. Our brands are strong, but as I said, they must be supported by the right business model. And from an operational point of view, there are 2 key areas that we need to focus on in the coming year. Firstly, the existing cost base supporting McPherson's warehousing and distribution activities is significant and underutilized. Future costs to maintain this model will increase materially over time as outdated and unsupported warehouse systems would require replacement and modernization. The capital outlay to replace these systems would be material and unavoidable. Secondly, when we divested the Multix branded assets, while we became less exposed to direct variable costs, there was a shared fixed cost base that was utilized by Multix as well as our health, wellness and beauty brands. Following the divestment of Multix, a large portion of this shared fixed cost base, which includes warehouse capacity and associated distribution and operation costs remains in the business. And we are now working to ensure the business has the right cost base to drive efficiency and growth in its core brands by seeking a leaner and more efficient model, right for a new portfolio and the changing nature of the pharmacy channel. Following the divestment of Multix, we announced a strategic review of our supply chain and route to market. Implementing a new operating model informed by this review remains a key priority in our current transformation. We've been busy making other changes to our operating model, too. In our international operations, we've repatriated the majority of our Hong Kong procurement function to Australia and have a plan that is rightsized for our new portfolio for procurement. We've also reset the international sales division to focus on developing new consumers through the rapidly expanding social e-commerce channels in China, particularly Dr. LeWinn's -- particularly for Dr. LeWinn's. We've also developed digital and e-commerce strategies in a staged rollout of our brands to improve our direct-to-consumer and omnichannel presence. Manicare, Lady Jayne and Dr. LeWinn's are now available at Adore Beauty as we continue to look for new channels to present our brands to consumers digitally, and we are excited to launch our new D2C sites on Shopify for Fusion and Maseur in December and Dr. LeWinn's in the near future. This year, we reported sales of $144.6 million and underlying EBITDA of $7.7 million from our continuing operations. Our underlying EBITDA was negatively impacted largely by foreign exchange and our portfolio brands performance. In addition, our material nonrecurring items incurred as a part of our strategy reset and transformation led to a significant statutory loss. It was encouraging to see that our core brand sales outperformed our other brands, throughout the year, and notably improved second half of FY '24 -- improved in the second half of FY '24 compared to the second half of FY '23 in difficult trading conditions. Our statutory loss from continuing operations was $11.4 million. This number reflects the significant material items from our strategic reset and transformation, including $3.7 million on the impairment of our exclusive distribution agreement with Chemist Warehouse, a $2.8 million impairment on other noncore portfolio brands and a $2.3 million write-down of inventory associated with product rationalization and the exit of noncore brands. We also undertook detailed planning during FY '24 to reduce working capital. This included improved inventory management and led to strong operating cash flows for the year. Overall, we ended the year with a strengthened net cash position of $14.1 million. During the first 4 months of FY '25 of this year, sales from McPherson's core brands have shown modest growth of 1% against prior period, an early indicator that investments in our core brands are beginning to provide a return, which is pleasing. This performance reflects up-weighted brand investment during the year-to-date, in line with management strategy to use disciplined strategic spend to drive growth and build momentum in our core brands. In addition to increased brand spend, selling, general and administrative costs have increased versus the same period last year, reflecting the implementation of Salesforce software and increasing investments in consumer data research, both key components of the company's reset strategy to invest and grow our attractive core brands. This investment in the core brands has been partially funded by savings from the restructuring activities undertaken in the first half of '24 and other cost-out initiatives through the year. McPherson's will report its half year results in February of 2025 on the basis of its continuing operations. And the first half of '24 will be presented on a comparable basis so that both periods reflect the performance of the company, excluding the Multix brand and assets. While the key holiday trading period of the first half '25 is yet to come, it is currently anticipated that the first half '25 underlying EBITDA will be significantly below first half '24 of approximately $7 million, given the deliberate decision to weight brand investment to the first half '25, along with the cost of the transformation activities and associated with the company's -- associated with the company's reset strategy. On the basis that the current trading conditions continue and noting the weighting of brand investments to the first half of '25, management anticipates full year '25 underlying EBITDA to be majority weighted to the second half '25. We're focused on methodically working through the transformation of McPherson's. Our aim is to substantially deliver on our transformation this current financial year, so we have our new simplified operating model fully functional for the start of FY '26. This is an ambitious aim, but we are steadfastly focused on making the necessary changes and taking the deliberate decisions that are needed to become a more streamlined and focused organization. I'd like to close by thanking our executive team and to all of our employees for their efforts for believing in what we are working to achieve and for having the courage to contribute to make a positive difference every day to McPherson's. I'd also like to thank the Board collectively and each of the directors for their continued support and encouragement. Your Board and management are single-minded in wanting to achieve a profitable and sustainable restage of this amazing company for all of our stakeholders. Finally, and certainly not least, I'd like to thank you, our shareholders, for your continued support of McPherson's. Thank you. I'll hand back now to Ari.

If there are any questions relating to either my address or Brett's remarks, I'll field them now. But if there are any questions about the specific resolutions and formal matters, I prefer if we can handle them under those topics.

Yes, sir. If you don't -- sorry, just 1 sec. Let's just get the microphone.

My name is [ Warren Saxelby ]. I just wondered, as you've said, your results from continuing operations around $144 million and EBITDA of 5%. I know you gave a view to the future, but 5% EBITDA margin, unless you can get to the double-digit EBITDA margins, it's not a sustainable business. Can you give us a sharper view on when you think you'll be able to give returns that were required for your strategy?

Warren, thanks very much for that question. And I think as Brett has laid out the specific broad parameters -- so certainly, Warren, if I can just complete the answer, if you don't mind. The first thing, as I said, is that Brett has laid out the foundation as to where we're coming from and has a stated ambition of double-digit EBIT margins. We don't provide guidance. We are going through a specific transformation, but we certainly have that as the vision and the objective. Because as you rightly pointed out, to be a sustainable and profitable business, that is very much the direction we need to navigate in. So thank you for that. Are there any other -- yes, ma'am.

My name is [ Carmen Sebares ]. I'm a shareholder. I haven't been involved for a few years, but I'm wondering what happened to Sukin.

So Carmen, thank you for that question. So Sukin is a brand that was previously owned by a company called BWX, which is not in our portfolio. My understanding is that after that company went into administration, the brand was sold off to a third party. Any further questions on the floor? Craig, do we have any questions online?

No, no questions online.

Thank you. I will now turn to the formal matters for today's meeting. The first item of business is the consideration of the financial statements and reports for the year ended 30 June 2024. These statements and reports were finalized and provided to the ASX on the 29th of August 2024 and are also contained in the company's annual report, which was given to shareholders on the 24th of October this year. Neither the Corporations Act nor McPherson's constitution requires shareholders to vote on or formally approve or adopt the financial reports. However, shareholders can, of course, ask questions regarding the financial reports of the company. As I mentioned earlier, Paddy Carney is here today representing PwC, the company's external auditors. Paddy is available to answer any questions from shareholders in respect to the audit report, the conduct of the audit, the accounting policies adopted by the company and the independence of the auditor. Are there any questions relating to this financial report? Any questions online?

No questions, Chair.

Thank you. I will now turn to the resolutions requiring a shareholder vote. All resolutions I will present are contained in a detailed notice of meeting, which was dispatched to shareholders on the 24th of October. As stated earlier, I will take the notice of meeting as read. The first resolution relates to my reelection as a Non-Executive Director of the company. Accordingly, as I stated earlier, it is appropriate that I temporarily pass the Chair of the meeting to our fellow Non-Executive Director, Helen Thornton, to manage and take any questions with regards to resolution 1. Once resolution 1 has been considered, I will resume the Chair for the balance of the meeting. Thanks, Helen.

Thank you, Ari. As Ari has said, resolution 1 relates to his reelection as a Non-Executive Director of the company. Ari Mervis, a Non-Executive Director and current Chair of the Board of Directors of the company, retires by rotation in accordance with the company's constitution and being eligible, offers himself for reelection. Details of Ari's skills, experience and background are contained in the Notice of Meeting. Your directors unanimously recommend, with Ari abstaining, that shareholders vote in favor of resolution 1. As Chair of the meeting for this resolution, I intend to vote any undirected proxies that I hold in favor of resolution 1. Details of the proxy votes received on resolution 1 prior to the meeting are now shown on the screen. Are there any questions on resolution 1? Are there any questions online?

No questions, Chair.

Thank you. I'll hand back to Ari to chair the rest of the meeting.

Thanks, Helen. Thank you very much, Helen. Resolution 2 relates to the reelection of a Non-Executive Director being Alison Cook. Alison Cook is a Non-Executive Director of the company, who retires by rotation in accordance with the company's constitution and being eligible, offers herself for reelection. Once again, details of Alison's skills, experience and background are contained in the Notice of Meeting. Your directors unanimously recommend, with Alison abstaining, that shareholders vote in favor of resolution 2. As Chair of the meeting for this resolution, I intend to vote any undirected proxies that I hold in favor of resolution 2. Details of the proxy votes received on resolution 2 prior to the meeting are now shown on the screen. Are there any questions relating to resolution 2? Any questions online?

No questions, Chair.

All right. Thank you very much. Resolution 3 relates to the adoption of the FY '24 remuneration report. Under the Corporations Act listed, the company is required to include as part of the directors' report, a remuneration report, which includes specific information. A remuneration report has been prepared and was included in the 2024 annual report. Under the Corporations Act, this report is subject to a nonbinding resolution of shareholders. However, even though it is a nonbinding resolution, it has been the company and the Board's strong practice to take the outcome of the resolution into consideration when reviewing executive remuneration. Your directors unanimously recommend that shareholders vote in favor of resolution 3. As Chair of the meeting for this resolution, I intend to vote any undirected proxies that I hold in favor of resolution 3. Details of proxy votes received on resolution 3 prior to the meeting are now shown on the screen. Are there any questions relating to resolution 3? Any questions online?

No questions online.

Thank you. The fourth resolution relates to performance right plan approval. Further details on this resolution can also be found in the notice of meeting. However, in brief, the company's performance right plan to encourage its senior executives to promote the long-term success of the company, provide a strategic value-based reward for such persons who make a key contribution to their success and to promote their retention and to align their interests with you as shareholders. If shareholders' approval of resolution 4 is obtained, the issue of performance rights under the performance rights plan will not reduce the company's 15% placement capacity under ASX Listing Rule 7.1 for the next 3 years from the 27th of September 2024. Your directors unanimously recommend that shareholders vote in favor of this resolution, and I intend to vote any undirected proxies that I hold also in favor of resolution 4. Details of proxies received are now currently being shown on the screen. I will pause for any questions that we may have regarding this resolution. Any from online?

No questions online, Chair.

Thank you. Resolution 5 relates to the issue of performance rights to Brett Charlton in his capacity as CEO and MD. And it is proposed to issue 2,481,000 performance rights to Brett. Further details of the resolution can also be found in the notice of meeting. In brief, within our pay-for-performance framework, these proposed performance rights to be issued to Brett, should shareholder approval be obtained, are part of the company's performance rights plan for FY '25. The framework has been constructed to reward achievement for the CEO of key financial measures that the Board believes are critical to drive growth and enhance shareholder value. The directors unanimously recommend that shareholders vote in favor of this resolution, and I will also vote any undirected proxies that I hold in favor of the resolution. Details of proxy votes received regarding resolution 5 are now being shown on the screen. And I will take any questions regarding this resolution. Any online questions?

No questions online, Chair.

Thank you. I will now give an opportunity for any further questions that you may have on any of the resolutions that have been presented today. Were any online?

No questions online, Chair.

Okay. As there are no further questions, I'd say -- I will confirm that a poll will now be held for determining the outcome of all resolutions of today's meeting. Please now enter your vote on today's resolutions if you have not already done so. I will give you a few moments to complete your voting before I close the poll. If you have any questions on how to vote using your keypads, please raise your hand and assistance will be provided to you. [Voting]

Ladies and gentlemen, that then concludes the formal business of the meeting today, and I will now formally close the poll. As I stated earlier in the meeting, the final poll results will be released to the ASX and posted on the company's website as soon as they are available after today's meeting. On behalf of the Board and management, I'd like to thank you very much for your ongoing support and for participating in today's meeting, and I will formally end the webcast. I would also like to specifically call out and thank Thomson Geer for their warm hospitality and hosting us here today. Thank you, shareholders for attending and hope that you enjoy the goodie bags. And if you'd like to join us, those of you in the room today, for a cup of tea in the back and a chat, we would welcome it. Thank you very much.