Napier Port Holdings Limited (NPH) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to Napier Port's Annual Shareholders Meeting. My name is Alasdair MacLeod, I'm the Chair of Napier Port Board and I'll be running today's meeting. On behalf of the Board, the Chief Executive and our leadership team, I'd like to welcome shareholders, Napier Port people and media to Napier Port's third Annual Shareholder Meeting as a listed company. In light of current public health and safety concerns, we're conducting our meeting online this year. We're pleased to welcome you as online participants through our virtual meeting platform provided by our Chair register -- registrar Link Market Services. You can vote and ask questions online. I'll provide you with further instructions as we progress through the meeting. If you encounter any issues, please refer to the virtual annual meeting online portal guide or you can phone the help line on 0-800-200-220. I would encourage you to send through your questions as soon as you can. This will allow us to answer these questions at the appropriate time of the meeting. [Operator Instructions] We invite all shareholders to join us on Friday, 4th February from Morning tea, given we haven't got the opportunity to meet with you all as we normally would to meet the Board and leadership team in person. We'll post details on our Investors center shortly. Before we begin, here is the disclaimer advising that this presentation does not amount to financial advice. If you'd like to read it in detail, please feel free to download this presentation from the Napier Port Investor Center. I'd like to introduce you to my fellow Board members who are joining us online today. They are Stephen Moir, Diana Puketapu, Vincent Tremaine, John Harvey, Rick Barker, and Blair O'Keeffe. And to our senior management team, our Chief Executive, Todd Dawson, who is with me today and Chief Financial Officer, Kristen Lie, and joining online, General Manager, Infrastructure Services, Michel De Vos; General Manager of Culture and Community, Viv Bull; General Manager Marine and General Cargo, Adam Harvey; General Manager, Commercial, David Kriel; General Manager, Strategy and Innovation, Andrea Manley; and General Manager of Container Operations, Kia Zia. Our auditors, Ernst Young, are represented today by Simon Brotherton. Now for the formalities. The CFO has confirmed to me that the Notice of Meeting has been sent to shareholders and other people entitled to receive it. I've been advised that we have a quorum present. On that basis, I'm pleased to formally declare the meeting open. Proxies have been appointed for the process of this meeting in respect of approximately 146.8 million shares, representing 73% of the total number of shares. My fellow directors and I intend to vote all discretionary proxies we have received in favor of the resolutions are set out in the Notice of Meeting. I'd like to thank our shareholders for their participation in today's meeting. In terms of the agenda, the format of the meeting today will be as follows: there will be a Chair's address, Chief Executive's address, Chief Financial Officer's address, shareholder questions on annual report and statements, formal business of the meeting, including questions and resolutions of the meeting and general business and other shareholder questions. Posing on all resolutions will be conducted by way of poll. You will be able to ask questions throughout the virtual meeting website, and I encourage you to send your questions through as soon as possible. I'd now like to give an overview of the 2021 financial year. In the face of ongoing lockdowns, global shipping congestion disrupted shipping schedules and supply chains, Napier Port has had a remarkable year. As Todd and Kristen will comment on later on in this meeting, the team at Napier Port kept cargo flowing, moving record volumes which in turn resulted in the solid financial results we're presenting today. Underpinning these results was the continued global demand for our region's food and fiber products, which highlights one of Napier Port's key strengths, the diversity of our trade portfolio. The stability that this diversity provides and the fortitude of our regional producers gives us the confidence to continue investing in long-term strategic infrastructure for the purpose of connecting our region and our customers to the world. As we have said previously, 6 Wharf is the centerpiece of this investment and when live will give cargo owners more shipping and supply chain options, access to larger vessels coming to New Zealand and greater flexibility and berth availability for our other 5 wharves. It is a credit to Napier Port, and our contractor partners, that 6 Wharf construction has so far not only stayed on track and on budget during 18 months of a global pandemic, but in fact we now expect it to be operational earlier and under initial estimated costs. This year, the Board is particularly pleased to have created a Sustainability Committee at Board level that oversaw the launch of a comprehensive sustainability strategy and action plan, including our first Climate Change Related Disclosure Report. The passion of Napier Port's people for integrating wellbeing, te reo and tikanga Maori, saw the launch of a Te Ao Maori strategy, and a Marine Cultural Health Program working closely with mana whenua to protect the Ahuriri marine environment. It is important to the Board that our actions as a business match the aspirations and expectations of our shareholders as well as our people, our customers, and the community. We are grateful for your support and confidence to continue investing in Napier Port. The Board has declared a final dividend of NZD 9.4 million, 4.7 cents per share, bringing total dividends for the financial year to 7.5 cents per share, up from 5 cents per share last year. This should have been paid into your bank accounts yesterday, 16 December. While we expect COVID-19 related disruptions to continue in the new financial year, and while inflationary pressures are building in the economy, the continued demand for the exports that cross our wharves, together with the benefits we see coming from our strategic capital investment program and Napier Port's proven resilience, positions us well. We will comment on the outlook later in the meeting. As a company that plays an important part in regional growth and prosperity, the team at Napier Port has been unwavering in their commitment to keeping COVID-19 out of the region and keeping port people and the community safe. Thank you to Todd and the senior management team for the tenacity with which they have adopted a leading position on border protocols, mandatory vaccinations and testing. Thank you to our cargo owners, who have worked closely with us this past year to overcome the considerable disruptions we have all faced. To contractors, suppliers and transport operators a sincere thank you for helping Napier Port keep our cargo owners and our community, connected to global markets. I'd now like to introduce Napier Port's Chief Executive, Todd Dawson, to present his report on the 2021 financial year. Todd?

Thank you, Alasdair. Good morning, everyone, and thank you for taking the time to attend our Annual Shareholders Meeting today. Napier Port has been more than resilient this year. It has performed incredibly well, under very challenging circumstances, and I am immensely proud of the whole team. The dedication of our people, and their pride in connecting our region to the world, meant we were able to move record tonnes of cargo, resulting in record financial results this year. Revenue of NZD 109.5 million is up 9% from last year; net profit of NZD 23.2 million is up 5.2% from last year; and 5.9 million tonnes of cargo handled is up 16.3% from last year's 5 million tonnes. Kristen will comment in more detail shortly. I want to focus on providing a summary of how we've been able to achieve these results, especially in the face of ongoing lockdowns and global shipping challenges. Our success can largely be attributed to 5 key things: firstly, we are seeing the benefits arising out of the very clear and detailed strategy that we developed in 2018; secondly, buoyant international markets keep demanding the food and fibre products of our region; thirdly, our cargo owners have shown true resilience throughout the pandemic. Despite ongoing labour shortages, shipping disruption and operational constraints on their production, they have continued to deliver strong volumes through our port; fourth, the forestry sector and log exports were consistently strong this year, despite harvesting being stopped during the August lockdown; lastly, through our strategy to grow our presence throughout the North Island, we have successfully attracted cargo from outside Hawkes Bay, which contributed to increased volumes this year. I will now talk in a bit more about and in detail about the first point our business strategy, which has underpinned our ability to weather the pandemic and sets us up well for the coming years. Underpinning Napier Port's business strategy is our purpose which is very clear. Together, we build a thriving region by connecting our customers, people and community to the world. That purpose is front and center of everything we do and in 2018 it was the starting point of a 10-year strategic roadmap we developed for Napier Port. Developed against the backdrop of year-on-year volume growth from our region, we needed to ensure we built the capability to futureproof Napier Port and support that continued growth. Our strategy defined 3 phases, spanning 10 years: Phase 1: A period of foundation setting which required to us support our region's future growth and largely focused on creating the capital structure and development of critical infrastructure we would need to support the region. Phase 2: A period of developing our people, systems and process capabilities to ensure we can best leverage the benefits of the infrastructure we are building and open the opportunities for Phase 3 where we are transforming our business and delivering a refreshed New Zealand Inc approach to supply chains, providing a greater number of services and new value streams for Napier Port. This year's highlights are good examples of where we are making solid progress in our strategic roadmap and sees us build further on our sustainability initiatives. I'll touch on those now. 6 Wharf is a major inter-generational asset for the region. I am pleased to report it has remained on budget and on track for completion, and in fact it's actually progressed faster than originally planned and is now expected to be operational in the second half of 2022. We have achieved this through applying a disciplined approach right from the start. The decision to invest in a 350-meter wharf, and to fund that through an IPO, was based on a sound business case. This disciplined approach has continued into the construction program which has given us the resilience to stay on track and on budget, despite 2 periods of lockdown during our construction. We expect the final cost of 6 Wharf to range between NZD 173 million to NZD 179 million. This is lower than our original earlier estimate of NZD 173 million to NZD 190 million. 6 Wharf opens up growth opportunities and shipping options for cargo owners. It will accommodate the larger vessels arriving in New Zealand, including 50-meter wide container ships and future Oasis-class cruise liners. It will provide greater flexibility and availability across all our other wharves, such as for bulk cargo and this will enable us to handle the increasing numbers of shipping vessels that are arriving at Napier Port. In addition to 6 Wharf, this year we embarked on a range of other investments to enhance our services to customers. This includes working with customers to introduce an on-port mobile log debarker and preparing our mobile harbor cranes for loading logs on to charter vessels. Debarking will replace methyl bromide fumigation of logs at Napier Port from January 1, 2022, a move which we have been committed to for some time. In March this year, we launched our Landside Logistics Service. This provides customers with a greater range of freight and cargo-handling options via Napier Port. We've extended our partnership with KiwiRail and with local transport and logistics providers to offer managed logistics services. This is providing a seamless link to our port for both importers and exporters. Growing the central and lower North Island supply chain network is an important strategic initiative for us. Having our own logistics service allows us to extend our reach and offer services to customers outside Hawkes Bay. Our joint venture initiative, the Manawatu Inland Port, is a key part of our network solution. Road and rail services now run 7 days a week between Napier Port and Manawatu Inland Port. The inland port provides services to major shipping lines and offers cargo owners within the central and lower North Island convenient access to shipping services via Napier Port. This end-to-end service has attracted new cargo to Napier Port, giving customers greater flexibility and options for moving imports and exports. Whakatu Inland Port in Hawkes Bay remains an important part of our future supply chain network. Our timeframe for development has shifted back to our original medium to longer term timeframe, however we remain flexible to bring this development forward if there is a compelling business case to do so. A key pillar of our strategy is developing data and technology to provide customers with a better service and experience in working with us. This year, in a time of shipping disruption and change, our planning technology in particular has provided extra flexibility for our customers and enabled us to better link their needs with our operational planning. An example of this is Propel: our in-house Vehicle Booking System. Propel makes it easier for transport operators to [indiscernible] for pick-up and delivery of containers. It provides users with improved visibility, access to and communication with Napier Port. It also allows us to better manage terminal capacity and demand. Feedback from customers has confirmed they are benefiting from these improvements in operational planning technology, as Napier Port has been able to respond rapidly to the changing nature of supply chain and the patterns throughout the year. The key to making our technology work is our people though and they have developed the tools in-house, and they work closely with cargo owners, shippers, carriers, agents and government agencies, to create many opportunities as possible to ensure our customers' cargo continues to flow. I like to thank our customers for trusting us then that we are doing all we can to bring vessels in and keep them connected to markets, during unprecedented disruption. In relation to Health & Safety, the priority this year has been our Critical Risk Control program. This focuses on marine and shore-based hazards that have the potential to cause serious harm or death. This year we completed critical risk assessments that address a range of hazards, including COVID-19. Our next step, which is already well underway, is to complete and validate critical control plans for each risk and to make changes throughout the business if they are required. We are making significant financial investments to ensure progress continues at pace in this area. A recent example of this is the purchase of new shore tensioning systems. This is a hydraulic mooring system that will replace the use of traditional shorelines on port. This will allow us to minimize and eliminate critical risks associated with mooring at the Napier Port. This is a significant investment being made to ensure the ongoing safety of our people and the Board and the management team remain committed and focused on prioritizing safety. Sustainability has been embedded into our business strategy this year. This reflects the importance we place on social, economic and environmental sustainability initiatives across our business. While sustainability has been an overriding consideration throughout Napier Port for some time, this year we launched a comprehensive Strategy and Action Plan aligned to the United Nations Sustainable Development Goals. Our philosophy is to think globally but act locally, and put our efforts into issues we are in the best position to influence and to make a meaningful difference in. The Marine Cultural Health Programme is a great example of this, where we have partnered with mana whenua to monitor the health of the marine environment in and around Napier Port. The program balances western science and Maori worldview and is the first marine cultural health program of its kind in New Zealand. Other sustainability highlights during the year include the: creation of 2 artificial reefs. The launch of our Te Ao Maori strategy and the refresh of our diversity and inclusion policy. The third year of our partnership with Massey University to support Korora Little Blue Penguin research, and the release of our first Climate Change Related Disclosure Report, providing an understanding of the potential implications of climate change on Napier Port. Partnerships and our culture of care are fundamental to our business. Hearing from our people, customers and community gives us a realistic gauge on how we're going as a company. This year, we surveyed these stakeholder groups to see what we're doing well and how we can improve. We kicked off a new annual employee engagement survey with 71% of our team taking part. Our people told us the work we do at Napier Port is important, they are proud to work for Napier Port and they would recommend Napier Port as a great place to work. They also want us to recognize and celebrate success more and have greater collaboration between our teams and departments. We were really pleased with the overall engagement score of 77% and we look forward to implementing some changes and improving on this score in the future. We also surveyed different customer groups for feedback on our service levels. We were pleased to receive a consolidated overall customer satisfaction score of 7.9 out of 10. It was pleasing to know that our customers recognize we are doing all we can to keep their goods flowing, and developing flexible, fit-for-purpose solutions to their shipping challenges. We want to be known as the port that says yes. Late in the financial year we surveyed 360 community residents and undertook deep-dive interviews with 12 stakeholder groups. This is the first time Napier Port has initiated a community survey and early results are very positive. 99% agreed that Napier Port is of key importance to the region and 76% thought Napier Port had a good reputation. But there's always room for improvement. We need to communicate more and share what happens inside our gates, with our community who want to know more about our long-term planning and also the sustainability work that we're undertaking. To summarise, when we look at our results this year, we can see that our strategy is clearly working and we did what we set out to do. Napier Port is in great shape to capitalize on the growth prospects and opportunities we see in the future. And I'll now hand over to Napier Port's CFO, Kristen Lie to present our financials. I'll then briefly return to comment on our outlook for 2022.

Thank you, Todd, and good morning everybody. Our expectations coming into the 2021 financial year were tempered given the ongoing pandemic effects and risks, and knowing there would be no cruise ship visits contributing to our 2021 financial results. In the final reckoning, we are pleased to report another year of growth and records in our key financial metrics with the main driver being the stable and positive export market conditions for New Zealand logs throughout 2021. Log exports through Napier Port increased 27.6% to reach just over 3 million tonnes. Total bulk cargo, including logs and products such as oil and fertilizer imports, was 3.95 million tonnes, an overall 26.6% increase on the prior year. Our container services business grew as volumes increased by 2.9% to 276,000 TEU. Within this total growth, containerized dry export cargo was down by 3.4%. This reduction was mainly due to lower wood pulp and timber volumes, which were impacted by shipping schedule disruptions and shipping capacity constraints during the year as well as exporters' plant maintenance and shutdowns. Higher value containerized refrigerated or Reefer exports increased 4.7% mainly due to higher meat exports. Apple and pear reefer export volumes reduced 1.5% to 25,000 TEU a good result given the well-publicized apple industry challenges with securing seasonal labor. Other container movements, including Discharge, Load, Restows, and transhipped containers, increased 58.4% to 17,000 TEU due to increased container repositioning by shipping lines related to shipping schedule disruptions. While charter vessel calls have increased by 39 to 343 ship calls due to the increased log exports, container vessel calls were down to 242 ship calls from 293 calls in the prior year. Global shipping congestion and disrupted supply chains continued to result in volatile schedules, with scheduled calls missed and significant reductions in total container shipping capacity from New Zealand and Napier. We also experienced a relatively high number of weather event days, further restricting shipping during 2021. Record bulk volumes led to our bulk cargo revenues growing NZD 10.2 million, or 32.7%, to NZD 41.5 million for 2021, more than offsetting the complete loss of all cruise revenue which was NZD 4.3 million last year. Our container services revenue grew 4.8% to NZD 65.3 million, due to the higher volumes, and 1.8% higher average revenue per TEU compared to the prior year. Additional revenues were earned as a result of container shipping disruptions, including additional storage and refrigerated container servicing. These gains were partially offset by the lower container vessel calls and lower Port Pack pulp and timber packing volumes during the year. Total Napier Port revenue, compared to the prior year, grew by NZD 9.0 million, or 9.0%, to a record NZD 109.5 million. As a result of the arrival of COVID-19 in early 2020, we implemented a number of measures to reduce and defer expenditure. Coming into the 2021 financial year, we did not expect the temporary cost measures implemented during 2020 to continue to the same degree. With this effect and continued investment in our capability and resilience, and an increasing inflationary environment, total operating expenses grew by 10.8% to NZD 65.7 million. The net result from operating activities increased by 6.4% to NZD 43.8 million, a record result and much better than our expectation coming into the 2021 financial year. Reported net profit after tax increased by 5.2% to NZD 23.2 million from NZD 22.0 million in the prior year. On a comparable underlying basis, 2021 net profit of NZD 22 million increased 7% from NZD 20.5 million in the prior year. In 2021, we committed the significant sum of NZD 110.4 million to capital investment projects. This included NZD 100.9 million on 6 Wharf construction, as significant progress was made on all the major project workstreams. Other investments included increasing our capacity to store refrigerated containers, new plant for the log debarker and mobile harbor crane log loading trial, and maintenance and replacement spend on the Te Mata tug dry docking, wharves, paving and buildings, and replacement bulk cargo hoppers, amongst others. This level of capital spend will represent the peak of our annual capital investment as we look forward to the completion of the 6 Wharf construction project, ahead of plan, in the second half of the next financial year. The positive progress to date with 6 Wharf construction has seen the range of remaining risk from this project reduce, enabling us to reduce the range of expected cost outcomes. Whilst significant risks with the project remain, as Todd noted, we have reduced our estimate for the total construction project cost to between NZD 173 million and NZD 179 million, excluding capitalized overheads and finance costs, which is lower than the original estimate. Given the inflationary cost pressure we are seeing across many cost categories, example, energy, labour, equipment, technology & insurance, we are obviously pleased to be in this position. Our balance sheet remains strong. At the end of the financial year, Napier Port had net drawn debt of NZD 78.0 million, in addition to NZD 102 million in undrawn credit facilities. A year ago, we were flagging the likelihood of our key net debt-to-EBITDA metric peaking above our target ceiling of 3.5x through the 6 Wharf construction period. This was due to the impact of COVID-19, including the expected loss of cruise revenues. Better than expected underlying earnings and 6 Wharf cost refinements mean, all things being equal, at this point in time we are now comfortable with reverting back to our original target ratio guidance of no greater than 3.5x through the 6 Wharf construction period. We continue to expect that over time the ratio will be managed to within the long-term target range of 2x to 3x following completion of 6 Wharf. I will now hand back over to Todd.

Thanks, Kristen. Looking forward to the 2022 financial year, unfortunately, we see the continuation of supply chain and shipping disruptions. Our customers are concerned by ongoing constraints with equipment and shipping capacity, congestion, increasing costs, labor shortages and the increasing inflationary environment. We look forward to successfully delivering a number of our strategic projects including 6 Wharf which we expect to be operational in the second half of 2022. Looking out further, we expect to see international borders reopening and a return of cruise ships. No cruise ships are expected at Napier Port during the current 2022 season. We are hopeful the cruise industry will start rebuilding during our 2023 financial year. In terms of trade and results expectations for 2022, as we have seen this year, log export volumes can have a material impact on our financial results. We noted in our annual results, that we are seeing the moderating of export prices and higher shipping costs, which are negatively affecting the log export trade. Whilst log volumes for the first 2 months of this financial year are largely in line with the prior year, we are expecting to see some slow-down in harvesting and exporting activity around the New Zealand summer holiday period and leading into the Chinese New Year period, at the beginning of February. There is an increasing profile of maturing trees ready for harvest across the Hawkes Bay and in the lower North Island and our base case assumption for log export volumes in 2022 is in line with our 2021 result, of 3 million tonnes. In respect of earnings, we are committed to improving yields and growing revenue to generate returns on investments in our strategic assets. Taking into account the expected contributions from completing strategic projects, our base-case assumption for log volumes, and assuming a continuation of the current market conditions, we expect our underlying results from operating activities to increase by approximately 10% for the new financial year. I would like to take this opportunity to thank the whole team at Napier Port for the dedication they have shown. We are delighted to have been able to recognize everyone's contribution through our Employee Recognition Scheme that saw a total payment of NZD 800,000 distributed to our employees and was made up of a mixture of both cash and Napier Port shares. Thank you to the Board for their support of the management team this year. And we look forward to the future and continuing to see our strategy deliver great results for Hawkes Bay and for you our shareholders. Thank you again for joining us today. I'll now hand back to our Chair, Alasdair MacLeod.

Thank you, Todd and Kristen. I would now like to give our shareholders the opportunity to ask questions related to the presentation. After the resolutions, we'll take further questions on general business. You can continue to ask questions, and we will also address questions already submitted. If we run short of time and are unable to answer your question during the meeting, we will respond to you after the meeting. Are there any questions received from shareholders on the presentation.

We have respected a question from [ Carnie Vincent ]. What will happen to the bark stripped from [ loss ] when this replaces metal bromide fumigation process?

Todd?

Thank you for the question. The bark from the debarking process will be collected and recycled. It will be -- we've formed a partnership with a local company to take the bark away, and it will be effectively composite and then used for biomass.

Are there any other questions?

There are no further questions from shareholders.

All right. Thank you for that. In that case, ladies and gentlemen, we now come to the formal part of the business, matters requiring resolution, which are outlined in the Notice of Meeting. You may ask questions on each matter being put to shareholders through the meeting website. Now moving to the resolutions. I propose to call a poll on each of these resolutions. As I mentioned, shareholders will be able to cast their vote using the electronic voting card received as an online registration was validated. To vote, you will need to click Get a Voting Card within the online meeting platform. You'll be asked to enter your shareholder or proxy number to validate. Please then mark your voting card in the way you wish to vote by clicking for, against or abstain on the voting card. Once you've made your selection, please click submit vote on the bottom of the card to lodge your vote. Please refer to the meeting online portal guide or use the helpline specified if you require assistance. Voting will remain open until 5 minutes after the conclusion of the meeting. Results of the voting will be announced via the [ InVidex ] Exchange market announcements platform after the meeting. Each resolution set out in the notice of meeting is to be considered as an ordinary resolution, and as such, must be approved by a simple majority of the votes cast by shareholders entitled to vote and voting on the resolution. The outcome of proxy votes will be displayed for your information before voting on all resolutions. Resolution 1 is to reelect Vincent Tremaine as Director of the company. So I know there's an ordinary resolution that's Vincent Tremaine be reelected as a Director of the company. Vincent retires by rotation in accordance with the provisions of the constitution of the company and being eligible offers himself for reelection. The Board fully supports the reelection of Vincent, and we will now play Vincent's address to the meeting.

Good morning from South Australia. My name is Vincent Tremaine and I have the privilege of being the Director of the Board of Napier since February 2019. Prior to that for 16 years, I was the CEO of Flinders Ports in South Australia, which owns 7 South Australian ports, the Adelaide Container Terminal and the cargo handling business. So that’s 3 years ago to pursue a career as a Director. In addition to the Port of Napier, I'm Chair of the Port of Geelong in Victoria, Chair of [indiscernible] which owns 10 water treating plants off Murray River, Chair of SouthernLaunch, which is involved in profit launching, although not [indiscernible] but we hope to speak a Director of Green Industries SA, which is the government fund entity involved in [indiscernible] economy and as Director of statewide graduation. In the past, I was the Chair of South Australian Chamber of Commerce for 8 years and a Director of Australia's [indiscernible] heavy vehicle regulator. In 2019, the Australian government awarded the mergership of the Order of Australia for my service support infrastructure and trade transport. On behalf of by profession, but I think both ports and port logistics for over 30 years. Also on the board of the Australian Port industry [indiscernible] Australia for 15 years, including 4 years as Chair. As a result, I have a deep understanding of ports and perspective to port operations. I also have a passion for the health and safety of all those people involved in port activities. I'm the Chair of the Port's health and safety committee, and I'm very proud of the work we collectively have done to improve port health and safety over the past 3 years. We still have a lot of work to do, but we're all deeply committed to ensuring that everyone goes home safely every day. I'm also a member of the Port's Audit Risk Committee where my accounting and governance background is useful. With your support, I would like to continue to work with our exceptional management team and [indiscernible] director is to add value to the business and the community of Napier and to keep us all [ strive ]. Thank you for listening, and back to you, Alasdair.

Thank you, Vincent. Are there any questions regarding the motion?

There are no questions on this matter from shareholders.

There are no questions. In that case, we will display the proxy votes for resolution 1 to reelect Vincent Tremaine as the Director of the company. Please mark your voting cards in the way you wish to vote by ticking for, against or abstain for Resolution 1 and the appropriate place on the voting card. [Audio Gap]