Man Group Plc (EMG) Earnings Call Transcript

Good morning, everyone, and thank you for joining us today. I'm Robyn Grew, the CEO of Man Group, and I'm joined by our CFO and COO, Antoine Forterre. I'll begin with a high-level overview of our investment performance and client engagement in the first half of this year. Antoine will then walk you through the financial results, after which I'll update you on some of our strategic highlights during the period. As usual, we'll finish with questions. The first half of 2026 was another period of turbulence in markets, one in which they proved resilient once again. The principal challenge came from geopolitics, but as tensions eased, risk appetite recovered quickly. We navigated a market where returns were unusually concentrated driven by the continued strength of the artificial intelligence narrative and robust corporate earnings. In fixed income, the possibility that interest rates may stay higher for longer kept bond yields high and elevated through much of the period. It was against this backdrop that the structural strength of our diversified platform was clear. We delivered a strong first half, which demonstrates the continued evolution of Man Group. The broad-based investment performance, exceptional net inflows, record AUM and growth in earnings we are reporting today are the direct result of deliberate multiyear initiatives to diversify our business. On the topic of diversification, I'm pleased to report that we generated overall investment performance of $19.8 billion in the first half. Both our alternative and long-only strategies contributed positively, reflecting the skill of our investment teams, our disciplined approach to risk management and the benefits of our advanced technology capabilities. Our asset-weighted investment performance was 0.4% ahead of similar strategies offered by peers. In liquid alternatives, we saw strength across the platform. Our multi-strat 1783 led the way once again, finishing the half up 7.9% now top quartile in its peer group across multiple time frames and genuinely uncorrelated to equities. 1783 continues to demonstrate the power of allocating dynamically across the breadth of alpha at the firm. Also in liquid alts, Man Alternative Risk Premia delivered another strong half for clients, returning 4.6% and exceeding $15 billion in AUM. AHL Alpha, our traditional trend following program, returned 7.1%, extending the recovery that started in the second half of last year. By contrast, AHL Evolution returned minus 3.7%, broadly in line with other alternative trend followers that trade less liquid and harder to access markets. Finally, in private markets, conscientious underwriting kept our credit portfolios robust, and it was great to see Bardin Hill making a significant contribution to performance fees during the period. Our long-only range once again outperformed strongly, providing a clear demonstration of the value of active management through a period of unusually concentrated markets. In equities, Numeric Emerging Markets Core was a standout performer, ahead of its benchmark by 4.8% (sic) [ 4.1% ] per year over the last 3 years, while Man Japan CoreAlpha was more challenged due to a difficult period for value investing in the region. In liquid credit, our strategies navigated rising dispersion across the market with rigor, once again exceeding their respective benchmarks. On the client side, growth during the first 6 months of 2026 was exceptional. We delivered total net inflows of $7.1 billion, which was 3.4% ahead of the industry, reflecting consistent market share gains. In a competitive environment for fundraising, we saw positive net flows across all 4 of our product categories, a powerful endorsement of the trust our clients place in us. You've heard me say this before. In today's markets, clients are consolidating their relationships with a smaller number of highly capable strategic partners who can help them manage complex risk and growing macroeconomic uncertainty. The quality of our people and our technology means we are well placed to capture that shift. We now serve 792 institutional clients, and our customized solutions remain a clear competitive advantage. The strength of this client demand was evident across our channels, generating $37 billion in total gross flows during the first half. Institutional clients contributed $21 billion, while wealth channels added $16 billion. Momentum was particularly notable across our long-only range, while demand for our customized solutions continued within liquid alternatives. We also made good progress extending our reach into the channels where we see the greatest opportunity. In wealth, our active ETF platform saw early traction, while our Asteria joint venture built further on its success. We continue to grow our presence in North America, more on that later. And we also launched a systematic credit solution with a new institution in the insurance space. As our clients' needs evolve, so will we, creating an even stronger business that is positioned for long-term success. I'll now hand over to Antoine, who will take you through the numbers.

Thank you, Robyn, and good morning, everyone. As usual, I'll begin with some financial highlights before covering our AUM, P&L and balance sheet. As Robyn mentioned, we ended the period with record AUM of $253.6 billion, up $26 billion or 11% since the end of December. This was driven by positive investment performance of $19.8 billion and net inflows of $7.1 billion. On a relative basis, our net flows remained ahead of the industry, reflecting the strength of demand we saw for our range of strategies. This growth in AUM was also reflected in our revenue. Core net revenue increased to $853 million, comprising $627 million of net management fees, 21% higher than the same period last year and $207 million of core performance fees, more than 3x H1 '25, with contributions from a wide range of strategies. We also generated $18 million of investment gains from our seed book. Fixed compensation and other cash costs of $222 million were broadly flat compared with H1 '25, while variable compensation increased, reflecting higher revenue during the period. Core profit before tax increased to $297 million, resulting in a core PBT margin of 35% Core management fee profit before tax was $186 million, equivalent to $0.124 per share of core management fee EPS. Lastly, the Board has declared an interim dividend of $0.057 per share, 1/3 of '25's full year dividend, in line with our guidance. We continue to maintain a strong and liquid balance sheet with net tangible assets of $758 million as at the end of June, supporting our disciplined approach to capital allocation. Turning to AUM and our new reporting categories. As a reminder, in February, we announced our intention to change our subcategories to better reflect the growth and evolution of our business, provide greater transparency on our strategic priorities and align more closely with market practice. While we still provide all disclosures in our data pack, these will no longer be available after Q3. Alternatives AUM stood at $110.5 billion at the end of the period. Liquid alts grew to $92.9 billion, driven predominantly by $4.2 billion of positive investment performance. Net flows were modestly positive over the half, so that masks a clear divergence between the quarters. Having seen net outflows in the first quarter, we returned to net inflows in the second as we experienced solid client demands for uncorrelated liquid strategies and solutions. Private [indiscernible] with $0.7 billion increase, reflecting continued selective deployments in direct lending and opportunistic credit. On the long-only side, organic growth remained very strong with $6.3 billion of net inflows, highlighting the continued demand for our systematic and discretionary capabilities across equity and credit. Combined with $15 billion of investment performance and positive beta, long-only AUM increased to $143.1 billion. Other movements were negative $0.9 billion, comprising $1.9 billion of FX headwinds owing to a stronger U.S. dollar, partially offset by $1 billion of positive other movements. Finally, in addition to our fee-paying AUM, we ended the period with $4.9 billion of uncalled committed capital, in line with December as additional commitments, including from the first close of our new opportunistic credit fund were largely offset by deployments during the period. Core net management fees for the period were $627 million, a $110 million increase compared with H1 '25. Our run rate net management fees, which represent a point-in-time snapshot of the firm's management fee earning potential, also increased by 10% to over $1.3 billion at the end of June. The run rate net management fee margin remained broadly flat compared with December as long-only growth came from relatively higher margin strategies within the category during the period. As I've said before, we do not target a particular net management fee margin, but instead prioritize driving profitable growth across all our product categories. Core performance fees for the period were $207 million, $140 million higher than in H1 '25 comprising $188 million from alternative strategies and $19 million from long-only. As I said earlier, performance fee generation was broad-based and included $84 million from 1783 as well as a contribution from opportunistic credit strategies managed by the Bardin Hill team. Performance fee eligible AUM increased to $69.2 billion at the end of June, reflecting the strong growth we have seen in the first half. Of that, $53.3 billion was a high watermark at the end of June, up from $36.6 billion at the start of the year, meaning a growing proportion of our asset base is in a position to generate performance fees if we continue to deliver. As of the 24th of July, we had accrued roughly $290 million of performance fees due to crystallize in the second half of the year. As always, this figure is not a [indiscernible] the amount that crystallizes will fluctuate based [Technical Difficulty] underlying level, savings from the cost actions we outlined last year enabling us to invest further in our strategic priorities, while maintaining overall cost discipline. As I've said before, we are highly intentional about where we allocate our resources. We will continue to take this approach, ensuring that our investments are directly aligned with our strategic priorities to expand our competitive edge and ultimately deliver long-term value for our clients. As a result, core PBT margin increased to 35% from 24% in H1, the middle of our indicative 30% to 40% range. Core management fee profit before tax grew 43% to $186 million, while core performance fee profit before tax grew to $111 million from $16 million. These figures include the impact of an increased provision in the period regarding commercial matter [ unrelated ongoing. ] Turning to EPS. Core management fee EPS grew 46% to $0.124 per share, the highest half year level [indiscernible] by the increase in core management fee profit before tax, together with the benefit of reduced [indiscernible] over the past 5 years, core management fee EPS has grown at a compound annual rate of 11%, reflecting the increasing scale of our management fee base. Core performance fee EPS increased to $0.075 from $0.012 in H1 '25, reflecting [indiscernible] doubled, up 105% [indiscernible] in H1 '25. In summary, our strong first half performance demonstrates that our strategy is working and driving tangible growth in our earnings. At the end of June, we had net tangible assets of $758 million on our balance sheet, including $152 million of available cash and cash equivalents. Gross seed investments were $557 million, including $137 million of exposure via total return swaps with $420 million held on balance sheet. We continue to manage this portfolio actively, aligning it with our strategic priorities as the business evolves. As you can see, it remains well diversified with 67% in alternative strategies and 33% in long-only, while 79% is invested in liquid markets and 21% in private markets. We continue to maintain a strong and liquid balance sheet, which gives us optionality and flexibility to reinvest in the business, pursue our long-term growth ambitions and return capital to shareholders. Our business remains highly cash generative, and this continues to support a disciplined approach to capital allocation, including the interim dividend declared today and the ongoing $50 million share buyback we announced in May, we returned $114 million to shareholders in the first half. Over the past 5 years, we have returned $1.9 billion to shareholders through a combination of dividends and buybacks, representing 42% of our market cap as at the end of June. The reduction in shares outstanding over that period means shareholders now receive an additional 25% of every dollar of earnings compared with 5 years ago. And on that note, I'll hand over to Robyn to take you through the next section of the presentation.

Thanks, Antoine. As you've just heard, this is a very good set of numbers. What strikes me most is the fact that the whole business is pulling in the same direction. Across investment performance, net flows and earnings, we're delivering. And crucially, this isn't a one-off. It is our second consecutive period of strong results, which proves the resilience we've built and will continue to build into the firm. In short, the strategy we set out over 2 years ago is working, and we're seeing the benefits compound into broad-based growth. I want to be clear that this remains a multiyear journey, not every initiative moves at the same pace, but we are making excellent progress and my conviction in what we are trying to achieve has only deepened. We have significant momentum and the right to win. Let me take you through some of those highlights from the first half. Turning to credit. Over the past few years, we have deliberately built this into a core capability at Man Group. Today, I'm delighted to say that our credit platform now manages over $60 billion in AUM across liquid and private markets. The current market backdrop plays directly to our strength. With broad market beta looking expensive, allocators are actively moving away from benchmark hugging approaches in favor of high conviction, active strategies. You can see this clearly in our liquid credit business, where exceptional organic growth is being driven directly by investment performance. Our global high-yield and investment-grade strategies are sitting in the top decile of their peer groups. And we're also seeing growth in new areas. We've recently developed and launched new strategies directly alongside clients. In addition to this, our model of incubating top-tier talent within our multi-strategy portfolios and then spinning them out into stand-alone businesses is working, and we've seen with the growth of our emerging markets credit strategies. Crucially, this approach also contributes to the growth of our performance fee eligible AUM. We've now built out over $2 billion in credit-focused liquid alternatives that generate performance fees, adding further to the diversification of that earnings stream. Turning to private credit. I'm particularly pleased with the investment performance we're reporting against a more complex market backdrop. It's a genuine testament to the skill and underwriting discipline of our teams. The numbers are worth dwelling on. In Man Direct Lending, our covenant default rate over the last 12 months is just 1.4% compared to an industry rate of 5.4%. Our PIK rate is approximately 4%, which is roughly half the BDC peer average. As a reminder, our offering is entirely institutional, and we don't have any structures with a liquidity mismatch. Alongside that, our opportunistic credit strategy delivered an annualized return of 35.7% in the first half in a period where credit stress was highly visible in parts of the broader market, these numbers reflect the fundamental quality of the portfolios we are managing and our limited exposure to the more speculative parts of the market. This track record is translating directly into client confidence. In fact, you may have seen that we recently completed the first close of our new opportunistic credit fund at a size larger than the final close of either of its 2 predecessors. Beyond this commercial momentum, we continue to invest in the platform itself. For example, we'll soon bring all of our U.S. private credit teams together in New York to drive collaboration across direct lending, opportunistic credit, U.S. resi debt and CLOs. Growth matters to us, but never at the expense of the discipline that has defined this business from the start. That is why, as we scale, we are being thoughtful about how we grow this, actively investing in new risk management and trading capabilities to support the platform. We have real momentum across credit, and there is plenty more to play for in this space. Moving to our geographical expansion. North America remains one of our most compelling opportunities, and I'm genuinely pleased with the progress we've made. However, we continue to believe we're underweight relative to the sheer size of the market. To put our recent momentum into context, gross flows from clients in the region during the first half were $12.9 billion. To give you a sense of scale, that's almost as much as we raised across the entirety of 2024, which is a remarkable rate of progress. It reflects the sustained investments we have made in our people and our presence over several years. And it proves that our focus on providing highly customized solutions and product innovation is resonating strongly with both institutional allocators and the wealth channel in the region. As a result, AUM from North American clients has grown at over 18% per year since the end of 2021. That growth is highly attractive, and it means the region is now contributing a meaningfully larger share of the firm's overall management fee revenue. We're still in the early stages of this journey. The runway is long, but the trajectory is right and the foundations are solid, and we intend to go much further. Let me turn to technology and specifically to AI. This is a topic that comes up in almost every conversation I have with clients and peers, and I'm yet to meet someone who doesn't view this as a once-in-a-generation opportunity. The reality is simple. The firms that get this right will define the future of asset management, and we intend to lead the charge. We've always been at the forefront of technology in this industry because it's fundamentally in our DNA and has been for decades. We already invest over $135 billion (sic) [ $135 million ] annually in our platform, employing hundreds of quants and technologists. That means we are not approaching this from a standing start, but rather from a position few others can match. We've been building cutting-edge AI infrastructure. We know the true power of the latest frontier and open-weight models is only really unlocked when they are securely connected to our proprietary systems and underpinned by the vast amounts of structured and unstructured data we've already amassed. Our people also recognize this potential with 96% of the firm already using AI tools on a daily basis. At the same time, we understand that this level of adoption must be paired with responsibility. By taking the time to put the right guardrails and governance in place, we are ensuring that we can safely and confidently accelerate our innovation from here. And that really is how we're thinking about this right now. How do we reshape the entire firm. We're looking across the business for workflows where AI can act as a multiplier, whether that means empowering our quants to research and test hypotheses much faster or enabling our operations teams to onboard a new client in a fraction of the time. I want to be clear on one point. We're ambitious. We're a growing business. And for us, AI is not a cost efficiency play. We're not looking to replace our exceptional people. We're looking to make them exponentially more powerful. We're incredibly excited about the road ahead because this is going to be truly transformational for the firm, for our clients and for our shareholders. Bringing this all together, in our industry, it's very easy to get caught up in looking at performance in halves and quarters. But to really understand the continued evolution of Man Group, you have to take a step back and look at what we've delivered over the last 3 years. The numbers on this slide show exactly what we mean when we talk about the compounding benefits of our strategy. Since June 2023, our 5 year trailing net flows have grown at 32% per annum, reaching over $50 billion and increasing total AUM to a record $253.6 billion. That scale has fundamentally strengthened our management fee base, driving core management fee EPS growth of 13% per annum, while simultaneously broadening our revenue optionality with performance fee eligible AUM growing to over $69 billion. But what gives me most confidence as we look to the future is the breadth of these numbers. This is not growth concentrated in a single flagship strategy or reliant on a single distribution channel. The areas we deliberately targeted for expansion, credit, quant equity and solutions have grown at 31% per annum to reach $185 billion. We're seeing positive net flows across all 4 product categories as a result of a bigger footprint in North America, in wealth and in insurance. That is true firm-wide growth, and it is precisely what our strategy was designed for. As we look ahead, the firm we have built is genuinely more resilient than the sum of its parts. With embedded operating leverage and rigorous capital discipline, this platform has scale, the capabilities and the momentum to deliver for our clients and our shareholders. To close, we enter the second half of 2026 with real momentum. The business we have built is highly diversified and structurally positioned for long-term success. As we look at the market environment today, we're seeing rising dispersion and growing macroeconomic uncertainty. These are precisely the conditions where active management and the ability to draw on a genuinely diversified range of uncorrelated strategies becomes most valuable. That is exactly what we offer. At the same time, we know that clients are consolidating their relationships. They're looking for a smaller number of highly capable strategic partners who can help them manage this increasing complexity. That trend plays directly to our strengths. The depth of our investment capabilities, our advanced technology and AI initiatives and our ability to build customized solutions at scale mean we are perfectly placed to capture that opportunity. As our clients' needs evolve, so will we. I have every conviction in our ability to continue executing on this strategy. That confidence is grounded in the exceptional talent we have across the firm, and I'm incredibly proud of what this team has delivered in the first half. With that, we're happy to take your questions.

[Operator Instructions]

Thank you, Robyn. I'll go straight to questions. Hubert, you were the keenest I will request that you unmute yourself. Hubert, can you hear us?

Yes, I can hear you. I've got 3 of them. Firstly, on the alternative flows, I think you mentioned solutions being a key contributor to that. Can you talk about what other drivers were within that number? Also, are you seeing inflows into AHL? Second question is on capital and M&A. Can you talk about what the M&A backdrop is like? Are you seeing opportunities out there? And if not, would you consider doing a buyback -- a further buyback later in the year once the current one is completed? And last question is on the core PBT margin. It was 35% in the first half. I probably would have expected a little bit more operating leverage just given the strong performance and performance fees in the half. Just wondering why that wouldn't be better than what it was.

Thank you, Hubert. Do you want me to take them all?

Take them, yes.

So on the flow side, pleased to see alternative, liquid alternative returning to net flows. Areas we saw demand beyond solutions are in Risk Premia categories as well as some of the equity and credit long-short hedge fund, which does mean that although we don't really talk about AHL in the same way today, we are seeing flows again in the systematic macro categories. On capital M&A, I'll start with the end of your question. The policy has not changed. And you remember the waterfall, first, progressive dividend, then organic and inorganic ways to deploy capital. And over the medium term, we aim to return surplus capital, most likely by way of buyback. We're still buying back shares. We have a $50 million program ongoing, of which $21 million remain outstanding as of the end of last week. That should get us towards the end of Q3 and the Board will, in due course, assess how best to deploy remaining surplus capital. The M&A environment remains one that we follow closely. We see M&A, as you recall, as a catalyst to our strategy. This is not our strategy. It's a catalyst to our strategy, either as a way to add capabilities as we've demonstrated with Bardin Hill and then 3 years ago, the Varagon acquisition or also as a way to sort of bolster possibly post-service solutions. The team continues to look at hundreds of opportunities a year. Our bars have not -- or bar hasn't been reduced. The bar to doing M&A remains very high. So we continue to look, nothing that we call out here, but it remains a key part for us to accelerate our strategy. And then core PBT margin, the -- so you're right, our new guidance is one where we would typically aim to be between 30% and 40% of core PBT margin sort of annual basis. As we used to say and we'll continue to say, the mix of performance fee is a key driver of where we stand within that range. So first is the quantum of performance fees, which you mentioned. And the second is the mix of performance fees. We have a broad-based set of performance fees coming through here from multi-strat from some of the single strategy hedge funds from Bardin Hill and discretionary teams, discretionary strategies tend to have a slightly higher comp ratio, slightly lower profit margin. So the mix ends up driving where we stand in the range. But nothing has changed. 30%, 40% is typically where we'll aim to be. Thank you, Hubert. Arnaud, I'll go to you. You should have ability to unmute yourself. Arnaud, can you hear us?

Yes. [indiscernible]

It's very hard to hear you, Arnaud. So if that's okay, I'll go to someone else, and I'll try and come back to you at the end. At the moment, it's very hard to hear you. Oli, over to you.

Oliver Carruthers from Goldman Sachs. Just one question for me. I think the Slide 17 you show on the North America expansion is really interesting. You're clearly now approaching the $100 billion mark in terms of AUM with clients domiciled over there. Could you just maybe double-click a little bit on the breadth of strategies and the types of institutions that you're hitting there? Really, what has been resonating the most in the last couple of years, in particular, where we've seen those gross flows accelerate? And then as you think about the long runway, I think, as you put it, Robyn, where do you think the white space, both from a client type and from a strategy kind of penetration is the greatest for U.S. clients?

Thanks for the question. I'll take this. So the client types is across the entirety of the space, so be it endowments, annuities, pension funds, insurance companies, state plans, it's really across the entire suite of institutional clients. And then as we've talked about with our launch of active ETFs, we're seeing expansion and engagement also in the wealth channels. When it comes to product type, it's really across the entirety of all 4 product spaces. If I were to characterize this, what we are seeing, and this is so across North America, but it's actually so across the world is as we're seeing greater volatility, greater dispersion, greater uncertainty, that people are building in these large institutions and wealth clients are building portfolios and structuring their portfolios in a way that can navigate that volatility. And so what they're looking for is uncorrelated content, content that can sit in their portfolios and act within this volatility space and take advantage of the Alpha opportunities that volatility and dispersion provides. So the reason we talk about greater runway is because, one, the content that we have is resonating, and it's resonating in a way that provides that level of capability to manage the uncertainty, but also the solutions capability that we talk about, the ability to actually develop with clients and alongside them content that fits their needs in their portfolios is incredibly resonant, particularly in North America. So there is a deep capital market there. There is high need, and we provide a capability across multiple asset classes now, which is resonating with them.

I'll go to Michael Sanderson. You should have the ability to unmute now.

A couple of questions, please, if that's okay. First of all, obviously, cost control is clearly a message you talk to. But on the flip side, obviously pushing very hard in the world of AI. How do you think about the cost implications of that in the medium term? Where are the costs going in that? How does that develop in sort of in your structure? I know we've got the 30%, 40% guidance, but just interested to know where the cost pressures are going to come from, to your mind from that perspective. Second one was just interested to hear a little bit more about Asteria and developments there. Clearly, that's the joint venture seems to be getting early momentum, but just interested to know which products that you sort of said you've rolled out more products in there and which ones are gaining traction in that area? And then I guess if I just squeeze one more. The private credit side of things, interested to know about the -- you've obviously deployed capital during the period. Sort of the backdrop at the moment, are you seeing sort of significant incremental opportunities for deployment given sort of the fears that are being seen in that market as we stand?

Shall I start with costs?

Yes. Then we'll talk about...

Asteria and then private credit. So the guidance we give of profit margin includes our investments in AI. And so there is no kind of additional assumption you have to make or changes to the guidance as a result, 30% to 40% profit margin typically. Robyn alluded to the way we deploy AI. It's really to augment, elevate the capabilities of our team. We are a growing business, as you've seen in the numbers, top line, bottom line growth with growth from new demand to our teams, and we use AI as one of the tools of resources at our disposal to make sure that we maintain operating leverage in the structure. So this is not a way to kind of replace people. This is a way to make sure that we can continue to absorb the growth that we have in the most efficient way across the organization. But the key point really for modeling purposes is the guidance still holds. Private credit to jump around a bit. You're correct, we're seeing deployments resume or really kind of take hold in direct lending and opportunistic credit, which leads to an increase in AUM to $17.6 billion. I think the environment is still conducive to deployment. It's not as buoyant as it has been in the past, but the teams maintain the ability to kind of deploy capital. And what you're seeing as well is the sort of evolution, the slow evolution of a business that was anchored by 2 or 3 large SMA insurance clients towards more of a funds business going forward. And then on the opportunistic credit side, which is a more recent addition, the environment is very strong. The first half of this year was very strong for performance and very strong for deployment as you start to see some dislocation and therefore, kind of stress and distress in the market. So overall, positive with some nuances depending on the team. Asteria has continued to do well. As you recall, it's a joint venture, we own 51%, Fideuram owns 49%. We focus on the manufacturing. They focus on the distribution predominantly within the network. And that's been a key driver of growth for our liquid credit strategies, in particular and ways that are relatively novel. So we have sort of target date or maturity products that have been raised quite successfully over the last couple of years there, for instance. Also some interest for kind of liquid alternative in places, including some of the more hedge fund kind of multi-strat content that we have. So historically, focused probably more on credit, but expanding broadly and a key driver of our wealth flow backwards, but also looking forward. I'll go to Nicholas. Nicholas Herman, you should be able to unmute.

Can you hear me?

Yes.

Great. Three from me, please. So firstly, on absolute return, big uptick in AUM in the [ insti ] solutions. Just curious if there's any skew on clients these commitments are coming from? And I guess just more broadly, are these coming from existing clients or new clients embracing these solutions kind of if you could just give us a bit more detail on momentum on those solutions there? Secondly, just coming back to the AI, you talked about targeting workflows, delivering performance and productivity gains. Can you give us some examples of what you have achieved in the first half of the year? And I guess also what you kind of are looking to also work and achieve in the next 6 to 12 months? And then the final one, I mean, I assume you won't comment on the PIFSS case, but could you give us an indication on when you expect to receive the final judgment of that case, please?