Computershare Limited (CPU) Earnings Call Transcript

Welcome to the Computershare 2020 Annual General Meeting. My name is Simon Jones, and I am your Chair. With travel restrictions for our overseas, directors and management, we're holding this year's meeting virtually. But we hope to be back next year with the hybrid meeting format we used over the previous few years, allowing both online attendance as well as in person. Consequently, I'd particularly like to welcome all those shareholders who normally attend at our Abbotsford office, such as [ Mary Hassey ], who has physically attended all 25 CPU AGMs. As we have a quorum, I'm pleased to declare the meeting open. Now let me introduce you to my fellow directors scattered around the world. Chris Morris; Tiffany Fuller; Abi Cleland; Lisa Gay; Joe Velli; Paul Reynolds; and of course, Stuart Irving, our CEO. Also attending online today are representatives of our auditors, PricewaterhouseCoopers. The minutes of the 2019 Annual General Meeting are available for inspection by any shareholder by contacting the Company Secretary, Mr. Dominic Horsley. Notice on how to access the Notice of Meeting was distributed to all shareholders, and I will take that Notice of Meeting as read. The online platform we're using today allows all shareholders and proxies to ask questions and submit votes. Questions can be submitted at anytime. [Operator Instructions] Please note that while you can submit questions from now on, I will address all questions at the same time at the relevant stage of the meeting, which will be after all of the items of business and proxy positions have been presented. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I'll shortly open voting for all resolutions. At that time, if you are eligible to vote at this meeting, a new polling icon will appear. Selecting this icon will bring up a list of the resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit or submit and/or enter a button as the vote is automatically recorded. You do, however, have the ability to change your vote up until the time I declare voting closed. I now declare voting open on all items of business. A polling icon will soon appear, and please submit your votes at any time. I will give you a warning before I move to close voting, which will be towards the end of this meeting. I also appoint Michael Hutchison of Computershare Investor Services as the Returning Officer. I'm pleased to report that Computershare delivered resilient results in FY '20. It was clearly an extraordinary year. We all remember Australia's summer bushfires, and of course, the pandemic that quickly followed. COVID has brought profound upheavals to all our lives, families, communities, working practices and financial markets. Given that context, I feel a great sense of pride in what Computershare has achieved this year, particularly in the second half of FY '20. Like every other global company, we face substantial challenges. Every one of our people has felt some strain and stress. But we've demonstrated conclusively that Computershare remains strong, stable and capable of delivering for all our stakeholders, our employees, our shareholders, our clients and our communities. Despite the impact of the volatility on our earnings across the year, our headline revenue was down by only 1.9%, and management EBITDA was down by only 3.7%. As you may remember, we report our results in U.S. dollars and in constant currency. However, central banks reduced interest rates rapidly. Our margin income, which is the income we receive from holding client balances, was significantly impacted and contributed to earnings per share decline of 19.8%. Positively, we did see improved performance across all of our business lines during the last 2 months of that year, which, along with our conservative balance sheet and strong free cash flow, enabled us to maintain the final dividend for shareholders at $0.23 per share. There are many other positives and reasons for an optimistic future and outlook, which Stuart will expand upon in his CEO report. Through the pandemic, we've also remained consistent around the core strengths and values that make Computershare successful. It's the disciplined execution of our long-term strategies for growth, profitability and capital management that contribute to our earnings performance and enable us to deliver consistent high returns on capital and dividends to shareholders. The charts on the screen show our long-term track record. Over the last 10 years, we've generated significant amounts of EBIT, including -- excluding margin income, and have paid out AUD 2 billion to shareholders in dividends. What is EBIT ex margin income you may say? Let me explain because this metric reflects the true underlying operating results for our business. It's the financial benchmark for measuring management's performance. This number is our earnings before tax and interest payments. It excludes the contribution from margin income. It is the profitability that we can primarily control. Margin income is impacted by cash deposit yields, and these events are largely outside of our control. Now let me talk about how Computershare responded to the pandemic. I'm sure you'll hear other companies highlight how quickly they reduced headcount and the scale of the cost they cut. To us, these aren't badges of honor in the pandemic. We hear a great deal, too, about the importance of ESG, and rightly so. For us, the real ESG is about protecting our people, our company, our customers and the communities in which we operate, especially through this period of high stress and anxiety. Our people are our priority. We swiftly moved 92% of our global workforce to work from home as our investments in technology allowed us to do this relatively seamlessly. We're getting the job done from spare bedrooms, garden sheds, kitchen benchtops. We preserve jobs wherever possible and did not claim the JobKeeper benefits in Australia. Management gave up performance payments to allow us to provide hardship relief payments to around 50% of our lower paid workforce. We've created flexible working arrangements and provided mental health support, understanding that homeschooling and family care are not easy. For our customers, we went above and beyond. Reputations are forged in difficult times. We quickly provided digital solutions for our customers in a virtual world, and we successfully hosted 1,200 virtual AGMs, just like this one. We facilitated complex capital raisings to support the liquidity. And we delivered on large difficult projects, just like we would do in any normal year. And we respected our shareholders. We gave regular briefings. We gave more disclosure to help investors understand the business through this period of volatility. Recognizing the strength of Computershare and the importance of the dividend, particularly to retail shareholders, we maintained the final dividend payment, nor did we dilute you at the bottom of the equity market by doing a placement at a discount to new investors. We just didn't need to. As a signal of confidence in our outlook, we continue to make investments in complementary acquisitions to drive growth and shareholder value. We're already seeing positive returns on these investments. I'd now like to talk about and expand on an important word that I mentioned earlier: communities. I'm proud to show how we support our local communities around the world, and in particular, those who are less fortunate than ourselves. This commitment existed here prior to COVID, and is as strong in our culture today as it ever was. In 2020, over $600,000 was donated by our colleagues to the projects we support, with Computershare matching all employee payroll donations. We've now raised over $10 million since the launch of our Change A Life program. Our global project, which we support across the group, has had great success this year. We support the World Youth International School in Nepal. It's a remarkable place, and I encourage you to visit there when travel reopens. This year, the school educated 500 students and achieved the best exam results in its history. During COVID and the lockdown, it provided online education for students with Internet. Like us, when it got tough, they put their heads down, they got the job done. There are other parts to our social responsibilities, too. These include sustainability, diversity and inclusion. Across our businesses, we are reducing our environmental footprint and supporting our customers to reduce theirs as well. We've cut paper-based communications across the group. In our Employee Share Plans businesses in the U.K. and Europe, we have reduced envelopes and hard copy letters by 90% over the last year. And in Mortgage Services, 44% of the payment holidays we granted in the U.K. are being managed digitally, and that number is 80% in the U.S. We have sustainability targets for our key locations around the world to reduce our environmental impact wherever possible. These include emission targets and energy consumption measures. We delivered on these targets in FY '20, and we're on our way towards some new targets as well. Diversity and inclusion matter to us. We're encouraging and facilitating more females into managerial positions. 54% of our workforce is female, and females now make up 28% of our executive levels. We're working hard to execute our strategy in this space, and we make further progress in this area. Before I hand over to our CEO, I'm grateful to my fellow directors for their contribution in this difficult year. On their behalf as well, I'd like to thank all of our shareholders for their strong support. I'd also like to thank all of our people across the world for their expertise, but particularly their commitment and special efforts in 2020. We tried to do the right thing by you, and you certainly have done the right thing by us. I want to thank Nick Oldfield, our new CFO. He deserves much credit. While Nick has been at Computershare for a long time, I'm sure he'll never forget this year. He's done a great job for your company, and we look for to his ongoing contribution. Finally, I thank Stuart Irving, our CEO and President. This year, Stuart has arguably made his most important and impressive contribution to Computershare in all of the years he's been here. I've really seen such impressive leadership. And on behalf of the Board, we thank you, Stuart. I'll now ask Stuart to give his presentation.

Thank you, Simon. I appreciate your support and also your kind words. Now let me add my welcome to our shareholders and guests joining online, and I'm really sorry we can't provide a cup of tea or a Computershare cupcake in person, but I hope you have some refreshments in front of you. Today, I'm going to cover 3 topics: a review of Computershare's performance in FY '20; the key priorities for the group in FY '21; and an update on our trading performance so far this year and affirm our earnings guidance for the full year. Let's start, though, with a simple snapshot and a reminder of who we are, what we do and where we do it. Computershare is a leading technology-enabled administrator to legal titles and financial assets. In essence, we are the keeper of the truth and the digital trail in millions of financial transactions. We originally developed our core register maintenance skills in the '90s. Since then, we have invested in, rewritten and evolved the proprietary technologies and platforms to administer these services at speed with great accuracy and efficiency to support clients around the world. We have developed new skills, too, around data, automation, major project delivery, regulation and compliance. With around 12,600 employees in the company, we combine this expertise to deliver world-class outcomes for over 25,000 clients. Our strategy is to use these strengths to build stronger businesses with scale and more exposure to positive structural growth trends. Then we identify new, complementary revenue pools to drive additional growth. That's the Computershare playbook. That is exactly what we're doing at Issuer Services, our largest business. We're extending our core registry skills into new adjacent revenue pools. These can be larger opportunities than the registry market itself. We have identified entity management, registered agent and private companies as attractive areas for long-term growth. We are investing for the future and accelerating our organic performance with complementary acquisitions. This year, even with the disruptions, we successfully acquired Corporate Creations and Verbatim Compliance Solutions (sic) [ Verbatim Global Compliance ]. They are excellent strategic fits, and they're performing well. Employee Share Plans is another one of Computershare's global growth engines. Through COVID, we have seen more companies use less cash and increased levels of equity-based remuneration to attract, reward and retain staff. With over $180 billion of assets under administration in our equity plan business, this is a positive structural growth trend. We apply the same asset administration, technology and regulatory skills in Mortgage Services. Later on, I'll talk more about how this market has changed this year. But at a headline level, it remains a $10 trillion plus market with plenty of room for ongoing disciplined profitable growth. And we currently service over 1 million mortgages in the U.S. and U.K. Last year at this meeting, we unwrapped Corporate Trust in Business Services, and we are focused on expanding our Canadian stronghold into new regions as well as growing in class actions and bankruptcy administration. And finally, I'll call out Communication Services. In this business, we engage with our clients' underlying customers and stakeholders to ensure they're accurately informed and updated. And we've made good progress here, too, shifting to digital delivery and helping our clients with our communication needs in a virtual environment we all had to transition to this year. Our businesses also have optionality. That means leverage to large one-off events and market factors. These include interest rates, corporate action activity, equity markets, unitholder votes and large class actions, for example. And while many of these revenue lines are below mid-cycle levels and are depressing current earnings, they do provide the latent earnings potential. When conditions improve, they give us the beat that funds capital management and share buybacks. So overall, where do we stand, or more importantly, what do we stand for at Computershare? In every market in which we operate, our hallmarks are trust, reliability, innovation and quality. And we get the job done in good times and bad. And I'm proud to say that is where Computershare is recognized today, and it gives us an excellent foundation for future growth and success. Now let me go back to the future. Technology. This is my home turf. There is no doubt that we're in the digital age. And where does Computershare fit in all this? I can assure you, we are right up there, and we're certainly not being left behind. Technology always has been, and will continue to be, at the core of everything we do. As one shareholder said to me, we are the original fintech. It's just that we generate cash flow and profits and, of course, pay dividends, too. Our technology strategy has 2 key parts: innovate to improve the customer offering; and two, deliver these marketing-leading services more efficiently. And I'd like to touch on 3 technology initiatives that demonstrate our strengths here. First, the EquatePlus platform in Employee Share Plans. We consider this to be the best share platform in the market. The clients that have upgraded to it certainly like it. They gave us a 96% client satisfaction score. And with over 1.25 million people hours invested, we have now migrated almost 100 million shares to the new platform. We support around 200,000 participants and have administered over 12 million transactions for over 100 clients. And that number is growing as we continue to win market share and continue with upgrading our clients to the platform. Now we've also automated Corporate Actions, and I know this is topical for lots of investors. Our self-service portal is distributed ledger technology-ready. We are all for market efficiency and don't let anybody say otherwise. This tool allows a customer to essentially self-serve if they desire. And in Issuer Services, we have GEMS, our software-as-a-service offering. This SaaS platform allows clients to manage their internal corporate entity compliance and regulatory requirements. Some clients want a complete, fully managed service, so we provide that, too. And we've also integrated our registered agent offering into this portal to provide compliance updates and status in a simple tool. Now there are many other examples of innovation across Computershare I could talk about. Technology is still at our core, where we invest, and we will continue to disrupt. And I look forward to sharing them with you in the future. Now on to our execution scorecard for FY '20. This page is like our end-of-year school report. We have a relentless focus on long-term planning, disciplined execution, investing for growth and driving efficiencies at Computershare. So how did we rate this year? Let me touch on some of the key points. First, we successfully migrated the last remaining loans onto our U.K. servicing platform. That project was completed in May, and we have now decommissioned the environment. In the U.S., we continued to carefully grow our US Mortgage Service business. UPB was up 16%, and we delivered some margin expansion. However, lower rates caused MSR prices to fall in the fourth quarter. And while prices are recovering now, the actuarial value market of our MSRs is below book value. It's not a loss we expect to crystallize, but we put a cross there. We continue to deliver organic growth in Issuer Services. Now when we said measurable here, this year, it was minor. US Register Maintenance revenues were impacted by margin income and lower shareholder paid fees in the last few months of the financial year, but on an ex margin income basis, EBIT improved, as did margin, which is a good result. We made further strides in moving to global business lines and a global service model, and I'm encouraged by the way this is increasing our focus on growth and customer experience. And finally, our cost-out programs are on track, and we have upgraded our total savings targets. So overall, we got the job done in difficult times, and I'm proud of what our people delivered for our clients in trying circumstances in the latter part of the financial year. But what can you expect for us in 2021? More of the same and some more, too, and you can see the priorities on this slide. We will continue to execute on driving growth, efficiency and enhancing our customer experience. We'll also continue to prioritize people. That includes protecting our staff through the COVID global recovery process, supporting our communities and delivering on important people-related initiatives such as greater diversity and inclusion. We'll do the right thing, and we'll get the job done. I'll now move on to the third point I want to cover today. It's an update on our trading performance so far in FY '21. I'm pleased to say, for the first 4 months of this financial year, we are trading slightly ahead of expectations. A simple way to look at this is to go through the ledger of what has been better than we expected when we reported results in August, what's tracking about the same as what we thought back then, and what's behind at this stage. On the positive side of the ledger, we are seeing improved corporate actions activities, such as large IPOs in Hong Kong and capital raisings in the U.K., and we are the only service provider that can safely handle such large and complex transaction, particularly when there's an intricate cross-border angle. Trading volumes in Employee Share Plans are also recovering. Now those were impacted when COVID first broke, affecting our FY '20 results. They have gradually recovered, and are ahead of where we thought they would be at this stage in the year. And we're seeing good new client wins in Issuer Services. These validate the strength of our integrated offering, and it's very encouraging to win our first major clients to provide the complete set of registry, corporate actions, entity management and registered agent services. And I'm confident there'll be more of those wins to come. Now what's in line with expectations? Margin income. We are on track to deliver around $100 million as we expected. Average daily balances are tracking around the top end of the $14 billion to $15 billion range, although it's clearly still early days in the year. Our counter cyclical businesses are also performing as we expected them, too. These businesses, like bankruptcy and class actions, perform well at the bottom of the cycle. And we're seeing improved activity and a good pipeline. On the other side of the line, shareholder paid fees in the U.S. remain subdued. And whilst this is surprising given where equity markets are because they are higher than what they were 6 months ago, a lot of the concentration of that rally is in the tech sector. And as some companies have delayed or canceled dividends, this impacts dividend reinvestment transactions, and we may see that recovery come through in the second half. And the extension to the U.S. government's restriction on mortgage foreclosures to the 31st of December is postponing some of our revenues later into 2021. We called out the risk of an extension to the original September postponement date in August, and clearly, that has happened. Overall, as I said, we are trading well and slightly ahead of our August expectations. With this start to the year, we are able to affirm earnings guidance for the full year. We continue to expect management EPS to be down by around 11%. And the important operating metric, as Simon explained, EBIT ex MI, should be up by around 10%. There is a change from August though. We now expect our profit split between the first and second half to be a little bit more even. In August, we gave an early prediction that the earnings split would be 40% in the first half and 60% in the second half. Now we have more months of results under our belt. And given the timing of revenues, we now think we'll have a slightly larger share of earnings in the first half, more like 42%. Now analysts may ask, if we're going to make more profit in the first half, why aren't we upgrading full year guidance? At Computershare, we call it as we see it. There are risks in the second half around COVID resurgences and lockdowns or the foreclosure moratorium being extended again. So let's keep guidance at $0.50 per share, and we will continue to provide transparent updates as we go. So in conclusion, even though the world is changing and challenging, let me make some commitments to our shareholders. We are committed to building a quality business at Computershare. We focus on customer longevity, strong moats, resilient and recurring revenues, consistent high returns, cash generations and long-term growth. That's what we're trying to build at Computershare. We invest in our growth engines to make them stronger, better, more efficient businesses. Internally, we structure ourselves to deliver the best outcomes for clients, knowing that we need to keep ahead of their needs as they continually evolve. And we obsess about best execution. We will continue to win new valuable client mandates in all of our chosen markets at the same time. We will continue to deliver new and exciting innovations. And finally, we will continue to protect our people, our employees, customers and communities as we keep our heads down and get the job done. We do this because it's the right thing to do and because we can. That, in a nutshell, is Computershare. Thank you very much for your time. I will now pass back to Simon.

Thank you, Stuart, for your presentation. Before we move to the resolutions, I would remind you that we have withdrawn resolution 5b from the Notice of Meeting. We will not be voting on that resolution today. The resolution related to the proposed recovery grant of share appreciation rights, SARs, to the CEO. I won't dwell on this matter than to say 2 things. Firstly, the recovery award was well intentioned. We tried to do the right thing. The fall in interest rates was outside of management's control. But nevertheless, it has a material impact on our earnings. Everybody here knows that. The lower rates are reducing the effectiveness of our current long-term incentive arrangements, and we wanted to provide management with targets that directly link their actions to deliver shareholder value. The reward grant was designed to do this. Secondly and more importantly, we respect the privacy of shareholders. And when it became clear that some shareholders have reservations, we withdrew the resolution. We listened, and we respect that position. As I mentioned at the start of the meeting, we'll answer all questions at the same time once all of the items of business and the proxy positions have been presented. If you do have any questions on the presentation, you can submit them now by pressing on the speech bubble icon, and we will answer them shortly. We will now run through the formal items of business. The first item of business relates to the tabling of the company's financial reports for the year ended 30th of June 2020. If you have any questions concerning the financial statements of the company or have a question for the company's auditor, PwC, please ask them, and we will address them shortly. I will now proceed with the resolutions to be considered. Any undirected proxy votes given to the Chairman on resolutions 2, 3, 4 and 5a will be voted in favor of the relevant resolutions. Voting will remain open during the resolutions, and I will also provide you with notice that the polls are about to close. We will move to consider the first resolution. The first resolution relates to the reelection of Joe Velli. Joe is due to retire from the office. And being eligible, presents himself for reelection. The Board, in the absence of Joe, unanimously supports his reelection. I move the reelection of Joe Velli as a director of the company. The resolution and a summary of the votes received before the meeting now appears on the screen. The next resolution relates to the reelection of Abi Cleland. Abi is retiring from office. And being eligible, presents herself for reelection. The Board, in the absence of Abi, unanimously supports her reelection. And I move the reelection of Abi Cleland as a director of the company. Again, the resolution and a summary of the votes received before the meeting now appears on screen. We will now move to consider the next resolution, which is the adoption of the company's remuneration report. The Corporations Act requires that at the AGM, a resolution that the remuneration report is adopted be put to vote. The vote is advisory only and will not bind the company or the directors. The resolution and a summary of the votes received before the meeting now appears on the screen. The remuneration report itself is set out on Pages 43 to 57 of the annual report. It sets out the policy for the remuneration of the directors, the CEO and other designated senior executives and details how that remuneration is structured. It also contains remuneration details for the directors and senior executives for the period ended 30th of June 2020. Noting that each director has a personal interest in their own remuneration from the company, as set out in the remuneration report, the directors recommend that shareholders vote in favor of adopting the remuneration report. And I consequently move its -- the adoption. The next resolution for consideration is to approve a grant of performance rights and share appreciation rights to the CEO, Stuart Irving, under the terms of the company's long-term incentive plan. Approvals requested from shareholders under the ASX Listing Rules to authorize the company to grant equity securities to the CEO under an employee incentive scheme. Full details of the terms of issue of the equity securities are set out in the Notice of Meeting. The Board, in the absence of Stuart Irving, unanimously supports the grant of performance rights to the CEO. I move the grant of performance rights to the CEO. The resolution and a summary of the votes received before the meeting again now appears on the screen. Now that we've tabled all items of business to be considered at the meeting, I will now open up the meeting to questions. If you have a question on any of the matters raised during the presentation or any of the resolutions, please ask them now. [Operator Instructions]

The first question that we have was received from a shareholder, [ Ms. Natasha Lee ]. The question was, the provision for legal has doubled from $5.7 million to $11.5 million in 2020. What is the reason for this? Could you provide some detailed advice on the possible legal claims that make up this provision? What I would say to this is, given the extent and breadth of Computershare's operations, we're subject to legal claims from time to time. These are managed through our legal department with support of external counsel as appropriate. There was an increase in the provision in respect of legal claims in FY '20. None of these claims are individually or, in aggregate, material. And for legal reasons, we do not comment on individual claims. What I would say though is that all claims above a certain threshold are subject to oversight by group management, the Risk and Audit Committee of the Board and the Board, and where the claims identify areas for control improvements, appropriate steps are taken to prevent any recurrence. We also received a few questions from the Australian Shareholders Association. The first one was on resolution 5a, being the FY '21 LTI grants to the CEO. The question asked was, cap and offset mechanisms to mitigate against the possibility of windfall gains were outlined for the now withdrawn recovery equity grant resolution. For the FY '21 sales grants, it is stated that appropriate safeguards will be put in place to prevent windfall outcomes. Can you please outline these safeguards in more detail? What I would say to this, and I think I should clarify something first. These share appreciation rights, or SARs, apply to 50% of the proposed FY '21 LTI grants to the CEO. And these replace the 50% of that LTI that was originally subject to the EPS hurdle. We outlined those reasons in the Notice of Meeting. I emphasize this is for an interim year only as we reassess how the LTI plan should be structured for FY '22 and beyond. In answer to the specific question, the Board feel that the plan design has safeguards to protect against windfall gains, both at the time of allocation and then again at vesting. At vesting, the Board retains the ability to exercise discretion if outcomes appear excessive. At the time of allocation, the Board decided not to incorporate exercise periods or future dividend flows in the SARs design. This meant that the SARs fair value was higher than it otherwise would be, and therefore, a smaller number of SARs were calculated for that grant. Additionally, I would emphasize that CPU is a mature business. It generates strong, stable cash flows from its core business, and it's not a hyper-growth start up. The Board is, therefore, satisfied that we have sufficient safeguards to prevent windfall payments. Another question from the Australian Shareholders Association dealt with the pandemic. They asked, given that over 90% of the CPU workforce have been working from home through the COVID pandemic and the high-volume of daily transactions the company performs, can you please outline the effectiveness and integrity of the operational security risk framework that was in place at the onset of pandemic? Our response is, as I mentioned in my presentation earlier, when the rapid spread of COVID-19 became apparent, we invoked our business continuity plans which we are regularly testing. This resulted in around 90% of our staff ending up working remotely. The response was managed through a dedicated crisis management task force with Board oversight and regular reporting. Having already invested in secure virtual networks and supporting technologies, we're able to ramp up capacity rapidly, allowing our workforce to work off-site without interrupting our service to our clients or compromising their data. In some cases, this has happened virtually overnight, maintaining our capacity to serve our clients and customers. For those people with essential on-site roles, we put in place strict hygiene and distancing protocols. We had stringent cleaning processes and we endeavored to risk -- reduce risk as much as we possibly could. Sometimes people get forgotten in these things, and I'd like to acknowledge the roles played by the divisions that support our core businesses: our people teams, our communication teams, our technology teams. These 3 teams were instrumental in planning and executing changes to our operations and then providing important guidance and reassurance to our employees during this frightening time. The last question we got from the Australian Shareholders Association was a very good one. It asks why can't shareholders be permanently identified by their HIN to end communication every time shares are bought and sold. This is an area where we can see value for shareholders, and we're actively working towards developing this functionality. It's underpinned by a range of complex considerations and including compliance. However, we're confident we can provide a solution and expect that will be available before too long. I have another question from [ Bleeker Street Proprietary Limited ], and it asked me to speak as to why there was such a high number of proxies against the remuneration report. What I would say to this is I can't necessarily speak for every shareholder, but I have talked to a range of them. There were a couple of proxy advisers who voted against -- who recommended against the remuneration report, partly because of the original recovery grant, but also because they believe that the mechanics of the LTI grant and the SARs were not in the shareholders' interest as they put it. We, as a Board, disagree with some of that logic. We have talked to most of our share -- quite a lot of our shareholders on that basis. We have heard the shareholders. We removed the recovery grant. We appreciate the support of our residual shareholders who voted for this. And we've taken notice of the comments that have come out during this process. I think that concludes the question sections of the meeting. I would like to advise that shortly, the voting on all 4 resolutions will close. I'll provide you all with a few moments now to allow you to finish voting. Please complete your voting now. [Voting]

The voting is now closed. The final results will be advised to the ASX and also made available on Computershare's website after the meeting. I thank you for all -- for your attendance. As the business of the meeting is now completed, I declare the meeting closed, and I will now have a cup of tea and a cupcake, and I hope to share that with you next year. Goodbye.