Southern Cross Media Group Limited (SXL) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the Annual General Meeting of Southern Cross Media Group Limited. My name is Rob Murray, the Chairman of SCA. I've been informed that a quorum is present, and I'm pleased to officially declare the meeting open. Thank you for joining us today. Today's meeting is being held using an online platform provided by Lumi. This allows shareholders, proxies and guests to attend the meeting remotely. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies can ask questions and submit votes in real time. And if despite all this, we have technological issues, we will make a recording of the meeting available on our website in the coming days. Before moving to some housekeeping matters, I would like to welcome and introduce my fellow directors who are joining the meeting today: Leon Pasternak, our Deputy Chair. Leon has been on our Board for 15 years. As I'm sure you're aware, Leon will be retiring at the end of today's meeting; Grant Blackley, our Managing Director. I'll ask Grant later in the meeting to provide an update on the company's current trading performance and outlook; Glen Boreham, who joined the Board in 2014 and was most recently reelected by shareholders at last year's AGM; Peter Bush. Shareholders will be aware that Pete recently stood down as Chairman, having led the Board since 2015. I'll have a little more to say about Peter and Leon's contributions to the company later in the meeting. Carole Campbell, who is our newest director, Carole joined the Board on the first of September and will offer herself for election by shareholders later in the meeting; Helen Nash, who is Chair of our People and Culture Committee. Helen and I will offer ourselves for reelection later in the meeting; Melanie Willis. Melanie joined the Board in 2016 and like Glen, was reelected by shareholders at last year's AGM. Melanie is the Chair of our Audit and Risk Committee. I'm especially pleased to welcome Ido Leffler and Heith MacKay-Cruise to today's meeting. Ido and Heith will offer themselves for election as directors today. As outlined in the notice of meeting, they will fill the vacancies left by the retirement of Peter and Leon and will bring their highly valuable and relevant skills and experience to our Board. We're also joined today by several members of the company's executive team, including Nick McKechnie, our Chief Financial Officer; and Tony Hudson, our Company Secretary. Finally, I'd like to welcome Trevor Johnston from the company's auditor, PricewaterhouseCoopers. Trevor will be available to answer any questions in relation to the audit. Before we move to the formal agenda of the meeting, I'd like to mention a few housekeeping matters in relation to how today's meeting will run. [Operator Instructions] Either I or one of my Board colleagues will address your questions towards the end of the meeting. Where appropriate, I will ask Trevor from PricewaterhouseCoopers to respond to any questions received about the conduct of the audit. Your questions may be moderated. And if we receive several questions on one topic, we may amalgamate those questions. Finally, if we run out of time to answer your questions, we will answer them in due course via e-mail or by posting responses on our website. Voting today will be conducted by way of a poll on all items of business to provide you with enough time to vote. I will shortly open voting for all resolutions. Once voting is open, a new polling icon will appear on the online meeting platform for shareholders and proxies who are eligible to vote at this meeting. [Operator Instructions] However, you can change your vote at any time before I declare voting closed. Chris Dedrick from Computershare will act as the returning Officer for the purposes of conducting and determining the results of the poll. We will announce the results of the poll to the ASX later today. I now declare voting open on all items of business. The polling icon will soon appear. Please submit your votes at any time. I will give you a warning before I declare the voting closed. I will now provide a brief overview of our performance during the 2020 financial year and will comment on strategic direction, Board changes and the Board's approach to remuneration planning. I will then ask our CEO, Grant Blackley, to update the meeting on the company's operating performance and outlook and growth initiatives. We will then move on to the other business to be considered on a vote on the resolutions. The most recent financial year was a difficult one for SCA and broadcast media more generally. Full year revenue of $540.2 million was 18.2% lower than the prior year and EBITDA of $93 million, excluding AASB16, was 36.9% below the comparable amount in the prior year. The metropolitan free-to-air advertising market decreased 20.2% year-on-year, which combined with a fall in market share led to a 25.3% decline in SCA's metro radio advertising revenues. Regional Radio performed somewhat better, although advertising revenues were down by 13.1% on 2019. In contrast, revenues from digital audio streaming and podcasting doubled to $7.1 million. The health and economic impacts of the COVID-19 pandemic since late March were the most significant factors in these results. But the company's advertising markets were also affected by low business and consumer confidence earlier in the year. Government restrictions in response to the pandemic, while appropriate, exacerbated those low confidence levels. I believe our team responded well to these challenges. Business continuity plans were quickly rolled out to ensure our 1,700 people in 62 locations around Australia could work safely and effectively from home. We asked our directors and nearly all of our employees to accept reduced pay and many to accept reduced hours of work. We asked our executives to forego their annual bonuses and long term incentives. Our 99 radio stations and 92 television stations continued to broadcast 24 hours a day, 7 days a week, keeping our audiences and communities informed and entertained and delivering value to our clients, many of whom have also been severely affected by the pandemic. On behalf of the Board, I would also like to record our appreciation for the support of our shareholders who took up their entitlements in the $169 million equity raise, which was conducted in April. The Board was especially pleased that all shares in the placement components of the raising were allocated to existing shareholders. We are also grateful for the support of the company's lenders who agreed to provide additional covenant headroom until June 2021 under our syndicated debt facility. These actions, together with other changes to create a leaner operating model have stabilized the company and set a sound base for the future. The company enters this new year with an enhanced and robust capital structure. Net debt on the 30th of September was $93 million. The company's leverage ratio on the 31st of December is expected to be below 1x net debt to EBITDA, providing comfortable headroom compared to the leverage covenant of 4.5 as well as flexibility to weather further disruptions from COVID-19 and to invest in strategic initiatives. At last year's AGM, we spoke about the strategic imperative to increase our investment in smart audio consumed through Internet-enabled devices to protect and expand our audiences. Our commitment to that strategy remains and is reinforced by growing consumption of digital audio during the pandemic. With Australia's largest portfolio of homegrown audio assets including 99 FM, AM and DAB+ radio stations. They are available to broadcast by Internet live stream as well as Australia's leading premium commercial podcast network in PodcastOne Australia. SCA is well positioned to lead Australia's growing digital audio industry. Our television business presents different strategic challenges. As an affiliate broadcaster with a streamlined operating structure under which our sales expertise drives positive commercial outcomes for both SCA and our metro program suppliers. Our television business delivered EBITDA before lease-standard adjustments of $19.5 million in the last financial year, down 40.5% compared to the prior year. But free-to-air broadcast television in regional Australia continues to be burdened by out-of-date regulation that constrains the ability of the incumbent operators to compete in the Internet era. Competition for audience and advertisers is ever-growing from subscription, video-on-demand and platforms such as Netflix and Stan as well as other online platforms like YouTube and Facebook. These platforms are subject to minimal regulation regarding their content or distribution, and they are distributed on the NBN constructed by the Australian government. Our own metropolitan program suppliers also compete with us by streaming their programming live and on-demand in regional markets. Together with other regional media companies, we've asked the federal government for the last 3 years to address the one-to-a-market and voice rules that prevent consolidation of regional media businesses. The recently launched Save Our Voices campaign fronted by Ray Martin, aims to raise public awareness of the urgent need to reform our regional media regulation. I'm pleased to report that the Board has completed its immediate succession needs, 3 new candidates Carole Campbell, Ido Leffler and Heith MacKay-Cruise offer themselves today for election by shareholders. All 3 were identified by the Board after an extensive search to fill the vacancies resulting from today's retirement of Peter Bush and Leon Pasternak. And to ensure the Board continues to have an appropriate range of skills and experience, including as the company expands its digital audio operations. I encourage shareholders to vote in favor of their election. As well as in favor of Helen Nash's reelection as a director. Our shareholders are aware, Peter Bush and Leon Pasternak will retire as directors at the end of today's meeting. Both have made invaluable contributions to SCA. Peter Bush recently stood down after 5 years as Chair of the company. Peter oversaw a comprehensive renewal of the Board and executive leadership team and a streamlining of the business to focus on the core competencies of creating compelling audio content and sales. Leon Pasternak is the company's longest-standing Director. Having been on the Board since 2005, his wisdom and corporate knowledge have underpinned the significant renewal of the Board's composition since 2014. On behalf of my fellow directors and shareholders, I thank both Peter and Leon for their contributions and wish them well for the future. Two other matters shareholders are asked to vote on today are the remuneration report and the grant of performance rights to our Managing Director, Grant Blackley. I believe the Board and executive team have taken a responsible approach to remuneration in the highly unusual circumstances of 2020. Directors and executives accepted temporary pay reductions from April until October. And executives have foregone all short-term and long-term incentive remuneration in the most recent financial year. These sacrifices did not at all reflect the amount of quality work carried out by the executive team during the period. They have worked diligently and with energy to strengthen the company's balance sheet, adapt our business to the unprecedented operating environment and develop a renewed strategic focus. For the new financial year, the Board has crafted an executive long-term incentive plan focused on restoring the market capitalization of the company over the next 3 years. The plan is explained in the notice of meeting in relation to the resolution, seeking approval for the grant of performance rights to Grant Blackley. By specifying total shareholder return as the sole performance measure, the plan provides a direct and clear link between shareholder returns and executive remuneration. In closing, I would like to thank SCA's management and employees for their commitment, care and tenacity in a difficult year. My board colleagues and I look forward to working with them in the year ahead as we evolve our business towards a more digital future and deliver positive and reliable outcomes for our audiences, our advertisers, our communities and importantly, our shareholders. I will now invite Grant Blackley to say a few words.

Thank you, Rob, and good morning, everyone. COVID-19 has had a severe impact on our business since March this year. But it has also accelerated consumer trends that will play to our strengths and strategy as economic activity progressively recovers. Consumption of our audio has grown strongly during the year. This is because audio is more accessible than ever through Internet-enabled devices, such as mobile phones, tablets, desktop computers and smart speakers. SCA's suite of radio assets, radio podcasts, our regional podcasts, and smart news updates are available on all these devices. Key statistics from September this year illustrate the growth in consumption of SCA's digital audio products. SCA's audiences listened to 10.5 million hours of digital audio in September. A year-on-year increase of 31%. Live streaming of the Hit and Triple M radio shows increased by 58% to 1.5 million unique listeners with 9.1 million active live streams, the highest ever. Listening on smart speakers grew by 62% year-on-year to 2.3 million hours. As a commercial audio business, we're buoyed by these positive trends in consumption of our products and focused on converting them to strong commercial outcomes as a recovery from COVID-19 progresses. In the year ahead, this will include growing our digital audio ecosystem with premium content, platforms and products attractive to our listeners and our advertisers. Creating compelling content that is expertly curated will continue to be at the core of our business, whether our audiences listen to our daily broadcast and digital live streams, or our digital on-demand podcasts and news updates. Equally important is our commitment to localism. Our Triple M and Hit network radio stations are strongly connected to the cities, towns and communities. PodcastOne Australia curates and produces our regional podcast that tell Australian stories. We expanded our radio portfolio to 99 stations during the year by acquiring 10 new radio stations in Western Australia and launching SoundCloud Radio. In fact, we temporarily have 100 stations, including Little Fox, and DAB+, pop-up children station on air during the strict COVID-19 lockdown in Melbourne. In July, we unveiled a new look Hit network, bringing back the much-loved heritage friends at the SAFM in Adelaide and B105 in Brisbane and introducing a new Get That Feeling tag line and favors the tone of female skewed audience, age 30 to 54. In August, we introduced statewide and breakfast shows to our 40 Hit stations in regional markets, complemented by locally hosted morning or afternoon shows and local news and weather. The highest priority in our content in our radio network is to establish a new and successful breakfast show on 2Day FM in Sydney. After reverting temporarily to a music format over the past 2 years, we're looking forward to incoming weeks joining us in the new breakfast show for 2Day FM in 2021. SoundCloud Radio is available on DAB+ in the 5 metropolitan markets and via live stream around Australia. It is unique in our portfolio. Offering listeners the chance to hear undiscovered tracks from emerging artists, launching their careers on SoundCloud. This new radio station extends our successful advertising partnership with SoundCloud and gives brands another way to connect with SoundCloud's young and highly engaged audience. PodcastOne Australia has consolidated its position as Australia's leading premium commercial podcast network, with more than 90 original Australian titles. PodcastOne Australia grew revenue by 96% to $4.6 million in the 2020 fiscal year. Titles such as Hamish & Andy and The Howie Games are consistently ranked amongst the top Australian original podcasts in the official Australian podcast, Breaker. We've also recently upgraded netted features to our PodcastOne Australia app to improve the experience for listeners wanting to enjoy their favorite podcast and to find others they might like. Importantly, our talent-led approach to original podcasting is delivering valuable returns for our clients, whether our advertisers or sponsors or even branded podcasts, they can promote their products or issues of importance to them through podcasting. As audiences increasingly enjoying our radio shows, podcasts and news updates on digital devices, there is an opportunity and imperative to expand and improve the audience startup and insights we create for our sales and content teams and for our clients. Digital technology allows us to place targeted advertising in our radio live streams, meaning that advertisement on our live streams, which can be sold at a premium rate, will not always be the same as that as on our radio broadcast. Our radio live streaming advertising revenue grew by 112% in the 2020 fiscal year. We now have over 630,000 signing users for our radio station apps and our in-house SCA IQ team houses Australia and Asia-Pacific's largest entertainment inside community with more than 300,000 members in metro and regional areas. These communities provide first-hardened data to inform our decisions and those of our clients to support ongoing growth in our industry and advertising revenue. In addition, we've recently announced 2 innovative digital audio campaign attribution products namely SCA Footsteps and SCA Soundcheck. SCA Footsteps provides advertisers with rich insights from listeners who have had an audio ad and then have gone to a specific location, retailer or proceeds within a measured time frame. This enables advertisers to measure return on investment from our audio and campaign by tracking consumer responses to their campaign. SCA Soundcheck uses technology to identify listeners who have heard of digital audio ad and retarget them with a campaign study questionnaire, allowing comparisons for control group of Internet users who have not heard the ad. This provides valuable information for advertisers about overall campaign effectiveness, including increased consideration and recall and purchase intent. We're also acutely aware of the ongoing need to educate advertisers about the benefits of investing in radio, whether broadcast or digital and to make it easy for them to do so. The ongoing Boomtown trade marketing initiative and the new RadioMATRIX advertising buying platform are 2 good examples of sensible and effective collaboration by the commercial radio industry to deliver better outcomes for the industry and media buyers. Boomtown is a regional media initiative to encourage national advertisers to consider higher investments in regional areas. In the year ahead, Boomtown will kick off a new education Masterclass series designed in conjunction with the Media Federation of Australia, which represents agency media buyers. The series will provide participants in the MFA's NGEN program with knowledge and tools to understand and book more regional media. At the same time, Boomtown will launch an online portal to offer agencies a one-stop shop to locate regional media coverage areas at SCA and other regional media owners, along with the relevant industry updates and consumer insights. The RadioMATRIX platform allows media agencies to book advertising on commercial radio stations around Australia. Since launching 2017, over 200 media agencies have used this platform, RadioMATRIX, to process more than 1.5 billion items of radio inventory on 370 Australian commercial radio stations. RadioMATRIX will be expanded in the year ahead to provide a virtual and paperless workplace for media agencies to send our briefs, received proposals and undertake a modeling of audience reach, frequency and cost against real-time availability. SCA itself has recently launched SCA Advertiser Now, a self-serve radio buying platform that allows small to medium-sized enterprises to create and book radio ad campaigns online. The new platform is being trialed for our Triple M and Hit stations in Townsville, and if successful, will be rolled out into other regional markets. Next, I'd like to update on our trailing performance for the first quarter and outlook for the first half. As announced to the ASX on the 8th of October, SCA is eligible for JobKeeper support to 3 January 2021. We expect to receive approximately $12 million in JobKeeper payments to offset employee costs from 28th of September 2020 to the 3rd of January 2021. However, with advertising bookings strengthening, we expect then SCA will not be eligible for JobKeeper support beyond that date. We do expect that revenues for the quarter ending 31 December 2020, will be 10% to 15% lower than in the corresponding period in 2019. This represents a further substantial improvement compared to the previous 2 quarters as media markets progressively improve. SCA has strong and trusted platforms to deliver our content and our advertisers' messages to mass audiences in brand-safe environments around Australia. Increasingly, our platforms and insights are enabling us to target valuable segments of our audiences, creating higher value for our advertisers and premium returns for SCA. Importantly, we have a resilient and dedicated team with the right skills to build our value and deliver long-term return to shareholders. Thank you.

Thank you, Grant. I will now move to the discussion of the formal items of business set out in the notice of meeting. The notice of meeting has been made available to all shareholders and is also available on SCA's website. Explanatory notes in the notice of meeting explain the background to each of the items of business. Shareholders have had an opportunity to consider those matters, and I will take the notice of meeting as read. However, I do want to make a few comments on today's director elections and succession planning. As I said earlier, Helen Nash and I are standing for reelection by shareholders today; and Carole Campbell, Ido Leffler and Heith MacKay-Cruise offer themselves for election for the first time by shareholders. The notice of meeting outlines the Board's recommendation for shareholders to vote in favor of all candidates. Helen continues to make a valuable contribution to SCA, particularly through her leadership of the Board's People and Culture committee. Carole joined our Board on the 1st of September, while Ido and Heith will do so after today's meeting, if elected by shareholders. All 3 of them were identified by the Board after an extensive search to fill the vacancies resulting from today's retirements of Peter Bush and Leon Pasternak and to ensure the Board continues to have an appropriate range of skills and experience. Each of them has prepared a short video presentation to explain to shareholders their interest in the company and how they will contribute to its future success. While all of them are participating in the meeting today to minimize disruption to the meeting, and the risks of technical problems, we thought it would be simpler for their presentations to be pre-recorded. We will shortly play those videos for you. But firstly, let me say a few words about my own interest in continuing as Chairman of SCA. I respectfully put myself forward for reelection by the company's shareholders. As my Avaya shows after a 30-year career in FMCG, which culminated into 3 CEO roles. I've been a nonexecutive director for about 7 years now of various companies. Currently, I am also the Chair of Metcash and of the Hawks brewing company. I've been a nonexecutive director at SCA for just over 5 years, and I'm very honored to have been given the opportunity by my fellow directors to lead SCA as its Chair. I should say -- I said yes to that opportunity because of why I do what I do. I do this role for what I would describe as intrinsic reasons I -- to be briefly candid, whether you don't think that extrinsic reasons are good enough to do it. I do it because I want to work in an organization where I can make a difference. I do it because I enjoy helping organizations achieve and I do it because I enjoy helping businesses build value for shareholders. I believe I can do that at SCA, I believe, a great opportunity exists to do that in the years ahead. And I respectfully ask shareholders to support me in this endeavor. We will now play a short presentation from each of Helen, Carole, Ido and Heith.

Good morning, ladies and gentlemen. In offering myself for reelection today, I wanted to share with you the experience and skill set that I bring to the Board and where I believe I add value. I have been a full-time nonexecutive director of various ASX-listed companies for the last 7 years. I currently sit on Metcash, Inghams and SCA. And on all three, I chair the People and Culture Committee. At SCA, I also sit on the Audit and Risk Committee and the Nomination Committee. My executive career spans over 20 years across three industries: FMCG, media and retail. I have held C-suite-level roles in marketing, commercial operations and general management. I seek to add value by always bringing a consumer voice to relevant board discussions. I am committed to strengthening the effectiveness of your company through increased cognitive diversity and the development of a high-performance culture that has been proven to deliver enhanced business results. Having held many senior executive roles, I am well placed to encourage support and importantly, challenge management in creating optimal value. SCA plays a vital role in the media landscape of this country in its creation and distribution of compelling content to the majority of the population. In seeking another term, I aim to partner with the rest of the Board and the management team in securing SCA's market position for the benefit of all shareholders. Thank you for your time.

Good morning. My name is Carole Campbell, and I'm pleased to have this opportunity to speak with you today about my upcoming election Director of SCA. Given this is my first time coming up for election, I thought it would be helpful to give you some information about my background and experience. I'm a professional nonexecutive director, and I currently sit on the boards of 2 ASX-listed companies, FlexiGroup Limited and IVE Group Limited. I'm also Deputy Chair of Counsel of the Australian Film television Radio School. And for all 3 of those organizations, I chair the Audit committee, and I've recently joined the Audit and Risk Committee for SCA. Prior to my board career, I spent over 30 years in financial executive roles in a diverse range of industries. And my media industry experience includes being CFO of Yahoo!7; and Treasurer of Seven West Media. I commenced my career with KPMG in the Audit division. I'm a fellow of Chartered Accountants of Australia and New Zealand. And through my various financial executive roles, I bring deep experience in finance, accounting, treasury and risk management to my role with SCA. I joined the Board of SCA on the 1st of September. And through my director induction program, I had the opportunity to meet the talented and motivated executive team of the company under the leadership of our Chief Executive, Grant Blackley. And I'm clearly joining the organization at a pivotal time in the company's history. The COVID-19 pandemic has, of course, had a dramatic impact on the Australian economy and, of course, advertising markets. And the continual evolution of digital technologies and new entrants into markets is disrupting traditional media players. This disruption is providing both challenges and opportunities to SCA. And with the company's exceptional Australia-wide audience reach and understanding, it's market-leading content capability and sales capability. I'm confident that we have the skills and resources to address these challenges and take advantage of the opportunities. I look forward to contributing to the future strategy of SCA and to its continued commercial success on behalf of all shareholders. Thank you very much.

Esteemed shareholders, my name is Ido Leffler, and it would be my honoring privilege to be elected to the SCA Board of Directors. For me, since meeting SCA and the remarkable people within the company, it is quite clear that, not only does the company have a remarkable heritage and incredible value-add content, there is a deep passion to provide wonderful experiences, both for our constituents, our audience and our advertisers. We are, however, going through a unique and very challenging time, but with great challenges comes great opportunity. And I believe that with my experience in turnarounds, fast-growth companies and emerging technologies. I will be able to help guide within the Board, the future strategy and directions of the company. We have a unique opportunity ahead of us. Never in our history, has technology moved so fast in this industry. Our advertisers are searching for more interesting ways to communicate with their audiences. And we at SCA have the best platform in the country in order to provide local, relevant and fantastic media experiences throughout, not just regional Australia, but throughout the entire country. For me, as a Board member, I've had the pleasure of being on some wonderful boards. And having spoken to the leadership team and the current board in place, there seems to be a real desire to build a robust, long-term strategy that can provide real shareholder value and returns in the long term. I can't wait to be a part of that challenge. I can't wait to get really knee-deep in seeing what the team has in place and introducing the company to what I believe will be some remarkable opportunities that will hopefully lead to tremendous results going forward. But as I said, it has been a challenging year and a challenging time, and we've got to take the steps necessary to make sure that we have the right team, the right skill sets, the right platform. And I think once we have that, we will be in a tremendous -- will be in tremendous stead for the future ahead. So with that, I thank you, and I look forward to meeting you in future platforms where we're not virtual. And I look forward to many more of these engagements. Thank you again, and I look forward to being elected to your Board.

Hello. I'm Heith MacKay-Cruise, and it's an honor and a privilege to be standing for election for the SCA Board of Directors. I thought I might start by sharing my early observations on the business. SCA is an organization committed to content delivery with significant reach throughout all of regional Australia, coupled with the major metropolitan markets. Our culture of passion, innovation, accountability and fun is clearly prevalent. An experienced board of directors with diversity of thought and a committed and competent management team helped drive the strategic agenda. Now even before we'd heard of COVID-19, technology adoption had accelerated through many businesses and sectors, including its impact on SCA. COVID has certainly amplified the pace of change and the need for agility. Notwithstanding the early innovative success of products like PodcastOne Australia, for example. There are significant challenges facing our business, but also very positive opportunities for SCA to consider, trial and test, and take a market leadership position on. So what experience might I bring to bear around the boardroom table to complement my fellow directors? Firstly, my sales and marketing experience with Frito Lay and Pepsi Cola. Secondly, my media sector experience with Australian consolidated press and also as the previous CEO of PBL Media in New Zealand. My strategy and merger and acquisition skills come from the global private education sector, where I've led businesses like Study Group and are currently Chair of UP Education in New Zealand. And more recently, my technology experience, experiences that have come from being a past independent nonexecutive director with the likes of hipages, LiteracyPlanet and the ASX-listed Bailador Technology Investments. Hopefully, these experiences will complement my fellow directors around the Board as we navigate post the COVID turbulent times and balance the strategic long-term desire to grow shareholder value for all stakeholders. I'm truly excited to be joining the Board of SCA, and I thank you in advance for your support.

I'd like to thank all of my fellow directors for their presentations. And I also would like to thank those who helped integrate them into today's meeting. Let's now turn to the other items of business on the agenda. Rather than step through each item of business, I'm going to accept submitted questions on all items of business now. The online platform is still open. So if you do have some time to submit a question, if you haven't already done so. As I mentioned earlier, the poll is open on all items. If you haven't yet voted, I encourage you to do so now. I will close voting at the end of the questions. The number and percentage of valid proxies received before the meeting are now shown on the screen. These proxies have been reviewed in accordance with the Corporations Act and the ASX listings rule. And any proxy votes required to be excluded by those requirements have been excluded from the numbers on the screen. The next slide shows the valid proxy votes received before the meeting for each item of business. As shareholders are aware, there is no requirement for a vote in relation to adoption of the financial report, although we, of course, welcome any questions. This slide will stay out for the remainder of the meeting. You will see that there's healthy support for all resolutions. While there might still be some votes to come in today, I thank shareholders for their support to date, and in particular, congratulate Helen, Carole, Ido and Heith on their reelection or election as directors of SCA. Turning now to questions. I'm going to ask Rochelle Burbury, on Corporate Communications Director, to let me know whether we've received any additional questions during the meeting.

As it stands, we have no questions.

So I understands from Rochelle that we have no questions. And with that in mind, that concludes our discussion on the items of business and all matters we need to cover today in our meeting. In 1 minute, I will close the poll, please ensure you cast your vote on all resolutions that you're entitled to vote on. I'll now pause to allow time for you to finalize your votes. [Voting]

So the votes are now closed and the polls are closed. So thank you for your votes. The final poll results will be released to the ASX and posted on the company's website when they're available later this afternoon. On behalf of the Board, I'd like to thank you for participating in today's AGM. I hope you've enjoyed the online format and that you and your families stay safe and well in the weeks and months ahead. With that, I now close the meeting. Thank you.