Full Year 2026 IDP Education Ltd Earnings Call

August 20, 2026

Speaker #1: Thank you, Ivy. To Tenneille, to get us started.

Operator: I'll hand you over to Tennealle to get us started.

Speaker #2: Thanks, Malcolm. And good morning, all. Thanks for joining us today. Now, I'm going to start by covering our FY26 highlights and transformation outcomes. Before handing over to Kate, to take us through the financials in more detail, I'll then cover an operating review of student placement and language testing before providing an update on the transformation, the changing market dynamics, and how IDP is positioned to win longer term.

Tennealle O'Shannessy: Thanks, Malcolm, and good morning all. Thanks for joining us today. I'm going to start by covering our FY26 highlights and transformation outcomes before handing over to Kate to take us through the financials in more detail. I'll then cover an operating review of student placement and language testing before providing an update on the transformation, the changing of market dynamics, and how IDP is positioned to win longer term. I'll close with our FY27 outlook and priorities before we open the call to questions. I'll turn now to the highlights for the year. FY26 was really a year of disciplined execution in a very dynamic market. We delivered what we said we would and managed financial performance for the volume environment. We strengthened the balance sheet and made excellent progress on the transformation. Revenue held up well given the level of volume pressure across the sector.

Tennealle O'Shannessy: Thanks, Malcolm, and good morning all. Thanks for joining us today. I'm going to start by covering our FY 2026 highlights and transformation outcomes before handing over to Kate to take us through the financials in more detail. I'll then cover an operating review of student placement and language testing before providing an update on the transformation, the changing of market dynamics, and how IDP is positioned to win longer term. I'll close with our FY 2027 outlook and priorities before we open the call to questions. I'll turn now to the highlights for the year. FY 2026 was really a year of disciplined execution in a very dynamic market. We delivered what we said we would and managed financial performance for the volume environment. We strengthened the balance sheet and made excellent progress on the transformation. Revenue held up well given the level of volume pressure across the sector.

Speaker #2: I'll close with our FY27 outlook and priorities, before we open the call to questions. I'll turn now to the highlights for the year. FY26 was really a year of disciplined execution, in a very dynamic market.

Speaker #2: We delivered what we said we would, and managed financial performance for the volume environment. We strengthened the balance sheet and made excellent progress on the transformation.

Speaker #2: Revenue held up well, given the level of volume pressure across the sector. Yield was strong, up 11% in student placement and 7% in language testing, reflecting our continued commitment to quality, and focus on the higher value segments of the market.

Tennealle O'Shannessy: Yield was strong, up 11% in student placement and 7% in language testing, reflecting our continued commitment to quality and focus on the higher value segments of the market. We exceeded our cost reduction target, delivering an AUD 32 million net reduction in the cost base while continuing to invest in technology, AI, and future growth. Adjusted EBIT was AUD 123 million, within our guidance range and reflecting the benefits of the actions we've taken. The balance sheet is in very good shape, with net leverage at 1x and contract assets materially lower, reflecting faster billing, stronger cash collection, and improved working capital. Kate and team have done an excellent job, and strong cash generation and working capital discipline has supported active capital management with an AUD 50 million share buyback announced in June.

Speaker #2: We exceeded our cost reduction target, delivered a $32 million net reduction in the cost base, while continuing to invest in technology, AI, and future growth.

Speaker #2: Adjusted EBIT was $123 million, within our guidance range and reflecting the benefits of the actions we've taken. The balance sheet is in very good shape, with net leverage at one times and contract assets materially lower, reflecting faster billing, stronger cash collection, and improved working capital.

Speaker #2: Kate and team have done an excellent job, and strong cash generation and working capital discipline has supported active capital management with a $50 million share buyback announced in June.

Speaker #2: We delivered this whilst maintaining our commitment to quality and trust, with above-market visa approval rates and securing more than $30 new university partners and delivering more than 60 contract expansions.

Tennealle O'Shannessy: We delivered this whilst maintaining our commitment to quality and trust, with above-market visa approval rates and securing more than 30 new university partners and delivering more than 60 contract expansions. We've made excellent progress on our strategic agenda, with technology investments improving outcomes and reducing cost to serve, as well as revenue expansion and diversification through new market entries. Our transformation agenda is also progressing well, which I will cover on the next slide. As a reminder, in phase 1, we set out to rightsize the cost base, to simplify the organization, and to keep building for future growth. We are pleased with the progress we've made. The AUD 32 million net cost reduction was well ahead of the AUD 25 million target set at the start of the year. We reduced headcount by 20%, or 1,250 roles. We strengthened procurement and streamlined platforms and operations.

Speaker #2: We've made excellent progress on our strategic agenda, with technology investments improving outcomes and reducing cost to serve, as well as revenue expansion and diversification through new market entries.

Speaker #2: Our transformation agenda is also progressing well, which I will cover on the next slide. As a reminder, in Phase 1, we set out to right-size the cost base, to simplify the organization, and to keep building for future growth.

Speaker #2: We are pleased with the progress we've made. The $32 million net cost reduction was well ahead of the $25 million target set at the start of the year.

Speaker #2: We reduced headcount by 20%, or 1,250 roles, with strengthened procurement and streamlined platforms and operations. We're bringing increased discipline to our operating footprint, consolidating IELTS locations from around 1,500 to less than 600, and transitioning to third-party models where this delivers a better returns profile.

Tennealle O'Shannessy: We are bringing increased discipline to our operating footprint, consolidating IELTS locations from around 1,500 to less than 600, and transitioning to third-party models where this delivers a better returns profile. Our investment in technology and AI to improve advice quality and confidence in receiving an offer is already improving student experience, conversion, and productivity. We also diversified within our core businesses with new student placement destinations in Malaysia and the UAE and the launch of IELTS in China. All of this work will provide ongoing benefits and support the next phases of the transformation and future performance. I will hand over now to Kate to cover the financials.

Speaker #2: Our investment in technology and AI to improve advice quality and confidence in receiving an offer is already improving student experience, conversion, and productivity. We also diversified within our core businesses, with new student placement destinations in Malaysia and the UAE, and the launch of IELTS in China.

Speaker #2: All of this work will provide ongoing benefits and support the next phases of the transformation and future performance. I'll hand over now to Kate to cover the financials.

Speaker #3: Thanks, Tenneille. Hi everyone. I'm starting on Slide 7. As Tenneille mentioned, our revenue in the year was down 9%. I'll talk more about that one on the next slide.

Kate Koch: Thanks, Tennealle. Hi, everyone. Starting on slide 7. As Tennealle mentioned, our revenue in the year was down 9%. I will talk more about that one on the next slide. Our gross profit held at 60%, and we are really pleased with this outcome, given the volume environment. We are able to fully offset the impacts of lower volume, source country mix, and a lower proportion of higher margin student placement revenue, with strong yield performance and a significant reduction in direct costs. Adjusted overhead costs were down 11% as cost savings in the period more than offset the natural inflation in our business, and depreciation and amortization was relatively flat this year. As a result, adjusted EBIT was down AUD 3.5 million or 7% year-on-year on a revenue decline of 9%. Now turn to revenue performance on slide 8.

Speaker #3: Our gross profit held at 60%. And we're really pleased with this outcome, given the volume environment. We're able to fully offset the impacts of lower volume, source country mix, and a lower proportion of higher margin student placement revenue, with strong yield performance and a significant reduction in direct costs.

Speaker #3: Adjusted overhead costs were down 11%, as cost savings in the period more than offset the natural inflation in our business, and depreciation and amortization was relatively flat this year.

Speaker #3: As a result, adjusted EBIT was down 3.5 million, or 7%, year on year on a revenue decline of 9%. Now turn to revenue performance on Slide 8.

Speaker #3: Our focus remains on profitable growth, increasing yield through value-added services for both clients and students. Student placement revenue was down 16% on volumes down 27%, including a strong yield performance.

Kate Koch: Our focus remains on profitable growth, increasing yield through value-added services for both clients and students. Student placement revenue was down 16% on volumes down 27%, including a strong yield performance. Volumes fell 27%, reflecting continued policy challenges across our key destination markets. While IDP visa approval rates were above market, volumes were impacted by late-stage visa rejections, which stepped up in the H2 in Australia. Yield increased 11%, driven by higher tuition fees, improved commercial terms, favorable destination mix, growth in value-added services such as Student Essentials, and a one-time benefit from improved global billing processes. English language testing revenue was down 1% on volumes down 8%, again reflecting a strong yield performance. Outside India, IELTS volumes were down 3%, with growth in Australia and several emerging markets largely offsetting softer demand elsewhere.

Speaker #3: Volume sold 27%, reflecting continued policy challenges across our key destination markets. While IDP visa approval rates were above market, volumes were impacted by late-stage visa rejections, which stepped up in the second half in Australia.

Speaker #3: Yield increased 11%, driven by higher tuition fees, improved commercial terms, favorable destination mix, growth in value-added services such as student essentials, and a one-time benefit from improved global billing processes.

Speaker #3: English language testing revenue was down 1% on volumes down 8%, again reflecting a strong yield performance. Outside India, IELTS volumes were down 3%, with growth in Australia and several emerging markets largely offsetting softer demand elsewhere.

Speaker #3: Our launch in China also contributed volume in the second half. In India, IELTS volumes were down 22%, performing ahead of the 28% decline in Indian study visa applications.

Kate Koch: Our launch in China also contributed volume in the H2. In India, IELTS volumes were down 22%, performing ahead of the 28% decline in Indian study visa applications. Around two-thirds of the 7% English language testing yield increase was due to annual price increases, with the remaining increase from source country mix. Moving on to slide 9. As we have outlined throughout our recent results, we have taken decisive action on cost to right-size the cost base for the evolving environment. You can see on the slide examples of savings we have delivered in the current year. These led to adjusted overheads down 14% on a headline basis, or 11% when we remove the FX tailwind. With cost savings delivered from the Q2 onwards, more than offsetting our natural cost inflation and delivering the AUD 32 million net reduction in the cost base versus our AUD 25 million market commitment.

Speaker #3: Around two-thirds of the 7% English language testing yield increase was due to annual price increases, with the remaining increase from source country mix. Moving on to Slide 9, as we've outlined throughout our recent results, we've taken decisive action on cost.

Speaker #3: To right-size the cost base for the volume environment. You can see on the slide examples of savings we've delivered in the current year. These led to adjusted overheads down 14% on a headline basis, or 11% when we removed the FX tailwind, with cost savings delivered from the second quarter onwards more than offsetting our natural cost inflation and delivering the $32 million net reduction in the cost base versus our $25 million market commitment.

Speaker #3: This builds on the savings we've already delivered with our cost base down 19% over the past two years. On to Slide 10. Working capital discipline: faster billing and stronger collections are creating financial flexibility for us.

Kate Koch: This builds on the savings we have already delivered with our cost base down 19% over the past two years. Onto slide 10. Working capital discipline, faster billing, and stronger collections are creating financial flexibility for us. The bars show the progress we are making on our contract assets and receivables over the past two years, with the blue bars representing total amounts owing to IDP that we have recognized as an asset. These are down 56% year-on-year. Most of the benefit came from new technology and global processes to support faster reconciliation and billing of student placement revenue. This is also evident in our debtor days, reducing from 60 days to 33 days over the past two years. Turning to slide 11. The balance sheet remains in good shape. This strong working capital management and cash generation has enabled us to reduce leverage and fund active capital management.

Speaker #3: The bars show the progress we're making on our contract assets and receivables over the past two years, with the blue bars representing total amounts owing to IDP that we've recognized as an asset.

Speaker #3: These are down 56% year on year. Most of the benefit came from new technology and global processes to support faster reconciliation and billing of student placement revenue.

Speaker #3: This is also evident in our data days, reducing from 60 days to 33 days over the past two years. Turning to Slide 11. The balance sheet remains in good shape.

Speaker #3: This strong working capital management and cash generation has enabled us to reduce leverage and fund active capital management. We have good liquidity with cash of $135 million in line with the closing balance at 30 June 2025, and we've undergone facilities of $341 million, with diversified tenor and the first maturity in April 2028.

Kate Koch: We have good liquidity with cash of AUD 135 million, in line with the closing balance at 30 June 2025, and we have undrawn facilities of AUD 341 million with diversified tenor and the first maturity in April 2028. Borrower group net leverage of 1x is down from 1.4x last year, and we repaid AUD 35 million of borrowings. The board announced a share buyback of up to AUD 50 million in June. The board also declared a final unfranked dividend of AUD 0.06 per share, resulting in total of AUD 0.09 per share for the year. We are really pleased with the progress we have made on the balance sheet, and this remains an ongoing focus for us as we continue to execute the transformation. I will now hand you back to Tennealle.

Speaker #3: Borrower group net leverage of one times is down from 1.4 times last year, and we repaid $35 million of borrowings. The board announced a share buyback of up to $50 million in June.

Speaker #3: The board also declared a final unfranked dividend of $0.06 per share, resulting in total of $0.09 per share for the year. We're really pleased with the progress we've made on the cash and balance sheet, and this remains an ongoing focus for us as we continue to execute the transformation.

Speaker #3: On our hand, you're back to Tenneille.

Speaker #2: Thanks, Kate. I'll now cover the operating review and our progress across our core businesses. Now, the key point here is that the business continued to perform while we made meaningful changes to how we work.

Tennealle O'Shannessy: Thanks, Kate. I will now cover the operating review and our progress across our core businesses. The key point here is that the business continued to perform while we made meaningful changes to how we work. Across the year, we focused on quality revenue, productivity, working capital discipline, and targeted investment in future growth. I will move now to student placement on slide 13, where we continue to expand our reach and leverage technology to improve customer experience, increase conversion, and drive productivity. We have spoken about this before, but one advantage of IDP's scale is that we are able to have an early view of emerging demand beyond the traditional Big Four destinations. This year, we diversified our revenues through expanding into two new destination markets. Malaysia is building well, and we are taking a measured approach in the UAE, so investment matches market readiness.

Speaker #2: Across the year, we focused on quality revenue, productivity, working capital discipline, and targeted investment in future growth. I'll move now to student placement on Slide 13.

Speaker #2: Where we continue to expand our reach and leverage technology to improve customer experience, increase conversion, and drive productivity. Now, we've spoken about this before, but one advantage of IDP's scale is that we're able to have an early view of emerging demand beyond the traditional Big Four destinations.

Speaker #2: And this year, we diversified our revenues for expanding into two new destination markets. Malaysia's Building Well, and we're taking a measured approach in the UAE, so investment matches market readiness.

Speaker #2: Now, these are attractive markets with established demand, strong economics, and pricing profiles that are comparable to our core destinations. We're also entering from a position of strengths, with existing university partnerships and established capabilities.

Tennealle O'Shannessy: These are attractive markets with established demand, strong economics, and pricing profiles that are comparable to our core destinations. We are also entering from a position of strength with existing university partnerships and established capabilities. Importantly, the investments we have made in our technology platform, digital capabilities, and AI tools make it easier to enter new markets, to scale efficiently, and to drive stronger returns as we grow. Our newly launched IDP Student Community proposition already has 42,000 students registered, providing highly valued peer advice that will further enhance trust as we build out our data depth. Investments in technology and AI-enabled tools like FastLane are improving conversion and counselor productivity, reducing cost to serve, and building our deep data assets. Student NPS remains over 70, and our unique data and insights are referenced extensively by destination market governments.

Speaker #2: Now, importantly, the investments we've made in our technology platform, digital capabilities, and AI tools make it easier to enter new markets to scale efficiently and to drive stronger returns as we grow.

Speaker #2: Our newly launched IDP student community proposition already has 42,000 students registered. Providing highly valued peer advice that will further enhance trust as we build out our data depth.

Speaker #2: Investments in technology and AI-enabled tools like Fast Lane are improving conversion and counselor productivity, reducing cost to serve, and building our deep data assets.

Speaker #2: Student NPS remains over 70, and our unique data and insights are referenced extensively by destination market governments. Student essentials continues to perform strongly, and revenue per user has increased 24%, with more than half of our students now taking advantage of practical setup services to help them settle into their new study destinations.

Tennealle O'Shannessy: Student Essentials continues to perform strongly, and revenue per user has increased to 24%, with more than half of our students now taking advantage of practical setup services to help them settle into their new study destinations. These are just a few of the great examples of how we are expanding our reach and leveraging technology to power our business, and they form part of a broader roadmap that we are investing in as part of our transformation. I will turn now to language testing on slide 14. IELTS remains the world's most recognized English language test, trusted by test takers, institutions, and governments. We continue to invest in product, marketing, digital capability, and AI to strengthen the testing experience. During the year, we launched 13 IELTS test centers in China, the largest and most profitable English language testing market in the world.

Speaker #2: These are just a few of the great examples of how we're expanding our reach and leveraging technology to power our business. And they form part of a broader roadmap that we are investing in as part of our transformation.

Speaker #2: I'll turn now to language testing on Slide 14. And IELTS remains the world's most recognized English language test, trusted by test takers, institutions, and governments.

Speaker #2: We continue to invest in product, marketing, digital capability, and AI to strengthen the testing experience. During the year, we launched 13 IELTS test centers in China, the largest and most profitable English language testing market in the world.

Speaker #2: Our test centers are located in the Yangtze River Delta region, which is home to a large proportion of China's student population. And in the first two months of FY27, we have opened a further 12 centers, bringing the total to 25.

Tennealle O'Shannessy: Our test centers are located in the Yangtze River Delta region, which is home to a large proportion of China's student population. In the first 2 months of FY27, we have opened a further 12 centers, bringing the total to 25. We have improved the test-taker experience also through improving our booking experience to improve conversion by 3 percentage points, with more than 370,000 people using the enhanced self-assessment tool, helping support confidence and score awareness. We continue to innovate the product, with the launch this year of our IOCP product, which essentially allows test-takers to complete the writing component of their test on paper in a computer-based format, giving test-takers more choice while maintaining quality, security, and trust. I am now going to highlight IDP's progress against our transformation on slide 16.

Tennealle O'Shannessy: Our test centers are located in the Yangtze River Delta region, which is home to a large proportion of China's student population. In the first 2 months of FY 2027, we have opened a further 12 centers, bringing the total to 25. We have improved the test-taker experience also through improving our booking experience to improve conversion by 3 percentage points, with more than 370,000 people using the enhanced self-assessment tool, helping support confidence and score awareness. We continue to innovate the product, with the launch this year of our IOCP product, which essentially allows test-takers to complete the writing component of their test on paper in a computer-based format, giving test-takers more choice while maintaining quality, security, and trust. I am now going to highlight IDP's progress against our transformation on slide 16.

Speaker #2: We've improved the test taker experience, also through improving our booking experience to improve conversion by 3 percentage points. With more than 370,000 people using the enhanced self-assessment tool.

Speaker #2: Helping support confidence and score awareness. And we continue to innovate the product. With the launch this year of our IOCP product, which essentially allows test takers to complete the writing component of their test on paper, in a computer-based format, giving test takers more choice while maintaining quality security and trust.

Speaker #2: I'm now going to highlight IDP's progress against our transformation on Slide 16. Our areas of focus remain clear. Simplifying the business, improving productivity, and investing where IDP can create more value for students, test takers, university partners, and shareholders.

Tennealle O'Shannessy: Our areas of focus remain clear, simplifying the business, improving productivity, and investing where IDP can create more value for students, test-takers, university partners, and shareholders. In phase 1 this year, IDP delivered a AUD 32 million reduction in net costs, and Kate will cover the drivers of this in the next section. With phase 1 now well advanced, financial year 2027 and 2028 are all about converting those efficiency gains into a transformed operating model, driving revenue, productivity, and stronger returns. In student placement, we are using our data, advice, and AI capabilities to improve conversion, to increase counselor productivity, and to help more students reach the right outcomes. In language testing, we are optimizing our footprint, commercial models, and partnerships to strengthen margins whilst continuing to expand IELTS into key growth markets.

Speaker #2: In Phase 1 this year, IDP delivered a $32 million reduction in net costs and Kate will cover the drivers of this in the next section.

Speaker #2: With Phase 1 now well advanced, financial year 27 and 28 are all about converting those efficiency gains into a transformed operating model driving revenue, productivity, and stronger returns.

Speaker #2: In student placement, we're using our data, advice, and AI capabilities to improve conversion, to increase counselor productivity, and to help more students reach the right outcomes.

Speaker #2: In language testing, we're optimizing our footprint, commercial models, and partnerships to strengthen margins whilst continuing to expand IELTS into key growth markets. And across the group, ERP will modernize our core platforms, reducing our cost to serve and giving us greater flexibility and speed.

Tennealle O'Shannessy: Across the group, ERP will modernize our core platforms, reducing our cost to serve and giving us greater flexibility and speed. By FY28, IDP will be a leaner, more agile organization with stronger earnings capacity and more opportunities to grow. Now, Kate will talk us through the specifics of the phase 1 transformation cost reduction on slide 17.

Tennealle O'Shannessy: Across the group, ERP will modernize our core platforms, reducing our cost to serve and giving us greater flexibility and speed. By FY 2028, IDP will be a leaner, more agile organization with stronger earnings capacity and more opportunities to grow. Now, Kate will talk us through the specifics of the phase 1 transformation cost reduction on slide 17.

Speaker #2: By FY28, IDP will be a leaner, more agile organization with stronger earnings capacity and more opportunities to grow. Now, Kate will talk us through the specifics of the Phase 1 transformation cost reduction on Slide 17.

Speaker #3: Thanks, Tennealle.

Kate Koch: Thanks, Tennealle. We delivered a significant reduction in our cost base during 2026. On a reported basis, overhead costs reduced by AUD 50 million from AUD 352 million in FY25 to AUD 302 million this year. This includes AUD 18 million of favorable FX movements and hedge gains. So when I exclude these, we get to the AUD 32 million reduction in underlying overhead cost base, exceeding our original AUD 25 million target by AUD 7 million. These savings were to a broad-based transformation program, including building a leaner organization, improved global procurement, streamlining IELTS operations, including reducing our test center footprint by around 60%, and continued technology platform consolidation. We incurred AUD 36 million of transformation costs during the year. Of this, around 80% related to restructuring the business, including severance costs, with the balance invested in our ERP-led core platform modernization program.

Kate Koch: Thanks, Tennealle. We delivered a significant reduction in our cost base during 2026. On a reported basis, overhead costs reduced by AUD 50 million from AUD 352 million in FY 2025 to AUD 302 million this year. This includes AUD 18 million of favorable FX movements and hedge gains. So when I exclude these, we get to the AUD 32 million reduction in underlying overhead cost base, exceeding our original AUD 25 million target by AUD 7 million. These savings were to a broad-based transformation program, including building a leaner organization, improved global procurement, streamlining IELTS operations, including reducing our test center footprint by around 60%, and continued technology platform consolidation. We incurred AUD 36 million of transformation costs during the year. Of this, around 80% related to restructuring the business, including severance costs, with the balance invested in our ERP-led core platform modernization program.

Speaker #2: We delivered a significant reduction in our cost base during 26 on a reported basis overhead cost reduced by 50 million, from $352 million in FY25 to $302 million this year.

Speaker #2: Now, this includes $18 million of favorable FX movements and hedge gains. So when I exclude these, we get to the $32 million reduction in underlying overhead cost base exceeding our original $25 million target by $7 million.

Speaker #2: These savings would be through a broad-based transformation program, including building a leaner organization, improved global procurement, streamlining IELTS operations, including reducing our test center footprint by around 60%, and continued technology platform consolidation.

Speaker #2: We incurred $36 million of transformation costs during the year, and of this, around 80% related to restructuring the business, including severance costs, with the balance invested in our ERP-led core platform modernization program.

Speaker #2: In FY27, we'll build on this progress by capturing the full year benefit of our FY26 actions, further simplifying our ways of working, and driving additional efficiencies across key cost categories.

Kate Koch: In FY27, we will build on this progress by capturing the full year benefit of our FY26 actions, further simplifying our ways of working and driving additional efficiencies across key cost categories. As a result, we expect these initiatives to more than offset normal cost inflation and deliver a further AUD 15 million net reduction in the cost base for FY27. We also expect transformation expenditure in FY27 to be around AUD 40 million. The mix of this spend will change, with around half the spend directed to the ERP program as we prepare for a planned go live in early FY28, with the benefits to be realized from FY28 onwards. I will now hand back to you, Tennealle.

Kate Koch: In FY 2027, we will build on this progress by capturing the full-year benefit of our FY 2026 actions, further simplifying our ways of working and driving additional efficiencies across key cost categories. As a result, we expect these initiatives to more than offset normal cost inflation and deliver a further AUD 15 million net reduction in the cost base for FY 2027. We also expect transformation expenditure in FY 2027 to be around AUD 40 million. The mix of this spend will change, with around half the spend directed to the ERP program as we prepare for a planned go live in early FY 2028, with the benefits to be realized from FY 2028 onwards. I will now hand back to you, Tennealle.

Speaker #2: As a result, we expect these initiatives to more than offset normal cost inflation and deliver a further $15 million net reduction in the cost base for FY27.

Speaker #2: We also expect transformation expenditure in FY27 to be around $40 million. The mix of this spend will change with around half the spend directed to the ERP program, as we prepare for a planned go-live in early FY28, with the benefits to be realized from FY28 onwards.

Speaker #2: I'll now hand back to you, Tennealle.

Speaker #3: Thanks, Kate. I'd now like to shift gears and spend a bit of time talking about the market. Now, we've alread the headlines about what is happening, but I want to go down a level of detail.

Tennealle O'Shannessy: Thanks, Kate. I would now like to shift gears and spend a bit of time talking about the market. We have all read the headlines about what is happening, but I want to go down a level of detail. So now I want to talk about the market shift that is taking place in international student recruitment and how this creates genuine opportunity for IDP. To put it most simply, the matching process between students and university partners is becoming much more complex. Value has shifted from being primarily about delivering volume through the funnel to delivering quality, nuanced, dynamic matching outcomes. In this environment, those who are most trusted to drive the best outcomes for the universities and students will win. As shown on slide 19, what we are seeing is that universities are increasingly being measured on visa, enrollment, and completion outcomes with negative regulatory and commercial penalties.

Speaker #3: And so now I want to talk about the market shift that's taking place in international student recruitment and how this creates genuine opportunity for IDP.

Speaker #3: To put it most simply, the matching process between students and university partners is becoming much more complex. Value has shifted from being primarily about delivering volume through the funnel, to delivering quality nuanced dynamic matching outcomes.

Speaker #3: In this environment, those who are most trusted to drive the best outcomes for the universities and students will win. As shown on Slide 19, what we are seeing is that universities are increasingly being measured on visa, enrollment, and completion outcomes, with negative regulatory and commercial penalties.

Speaker #3: In the UK, under the BCA or Basic Compliance Assessment Framework that came out of the White Paper recommendations, universities who do this poorly are penalized, with reduced international student allocations.

Tennealle O'Shannessy: In the UK, under the BCA or Basic Compliance Assessment framework that came out of the white paper recommendations, universities who do this poorly are penalized with reduced international student allocations. In Australia, we are seeing a similar trend towards linking student allocations to outcome performance. Universities are no longer competing simply for academically qualified students but for those most likely to secure a visa, to enroll, and to successfully complete their studies. Visa assessment processes are now considering a much broader range of factors, including geographic region, source of funds, course rationale, employment pathways, study history, and they are also requiring much more supporting documentation. We are also seeing students are applying to more institutions, using AI-assisted tools and taking longer to make decisions. Taken together, this is making traditional application data a weaker signal of student quality, intent, and readiness.

Speaker #3: And in Australia, we're seeing a similar trend towards linking student allocations to outcome performance. Universities are no longer competing simply for academically qualified students.

Speaker #3: But for those most likely to secure a visa, to enroll, and to successfully complete their studies. Visa assessment processes are now considering a much broader range of factors, including geographic region, source of funds, course rationale, employment pathways, study history, and they're also requiring much more supporting documentation.

Speaker #3: And we're also seeing students are applying to more institutions, using AI-assisted tools and taking longer to make decisions. Taken together, this is making traditional application data a weaker signal of student quality, intent, and readiness.

Speaker #3: I'd now like to move on to Slide 20 to provide the student perspective. Now, in response to all this uncertainty, students around the world are also changing their behavior, including how they make decisions.

Tennealle O'Shannessy: I'd now like to move on to slide 20 to provide the student perspective. In response to all this uncertainty, students around the world are also changing their behavior, including how they make decisions. They are seeking more support to understand complex visa settings, visa likelihood, course fit, employment outcomes, and generally just the practical pathways involved in studying overseas. They are increasingly valuing visa certainty, employability, and return on investment over university rankings alone. They want to know not only that they are choosing the right course, but also that it is a realistic option for them individually. What we are seeing is that students are also applying to more institutions, and they are spending longer evaluating their options and delaying commitment. Some are withdrawing or not completing enrollment because of concerns about the high personal cost of a visa refusal.

Speaker #3: They're seeking more support to understand complex visa settings, visa likelihood, course fit, employment outcomes, and genuinely just the practical pathways involved in studying overseas.

Speaker #3: And they are increasingly valuing visa certainty, employability, and return on investment over university rankings alone. They want to know not only that they're choosing the right course, but also that it is a realistic option for them individually.

Speaker #3: What we're seeing is that students are also applying to more institutions, and they are spending longer evaluating their options and delaying commitment. Some are withdrawing or not completing enrollment because of concerns about the high personal cost of a visa refusal.

Speaker #3: With the cost, the financial cost of visa applications increasing, at the same time that the likelihood of visa success is decreasing. Now, importantly, while AI can make information easier to find and applications easier to generate, it does not make decisions easier to make.

Tennealle O'Shannessy: With the financial cost of visa applications increasing at the same time that the likelihood of visa success is decreasing. Importantly, while AI can make information easier to find and applications easier to generate, it does not make decisions easier to make. In fact, in many cases, it actually increases confusion and the need for trusted guidance. Students are looking for greater confidence that they are choosing the right course, institution, and destination before making a significant investment in their future. Moving now to slide 21. For both students and university partners, trust, quality signals, and dynamic matching are becoming more valuable. Here is where the opportunity lies. This creates an environment that increasingly plays to IDP's strengths. We have unmatched trusted reach through our market leading brands, global counselor network, digital channels, and more than 1,000 established university partnerships.

Speaker #3: In fact, in many cases, it actually increases confusion and the need for trusted guidance. Students are looking for greater confidence that they're choosing the right course, institution, and destination, before making a significant investment in their future.

Speaker #3: Moving now to Slide 21. For both students and university partners, trust, quality signals, and dynamic matching are becoming more valuable. And here is where the opportunity lies.

Speaker #3: This creates an environment that increasingly plays to IDP's strengths. We have unmatched trusted reach through our market-leading brands, global counselor network, digital 1,000 established university partnerships.

Speaker #3: This is incredibly difficult to replicate, and places us firmly at the center of the student decision-making journey and uniquely positions us to help our university partners.

Tennealle O'Shannessy: This is incredibly difficult to replicate and places us firmly at the center of the student decision-making journey and uniquely positions us to help our university partners. Second, we have a significant data advantage. We have visibility across policy settings at a global scale, on platform student behavior, and applications and outcomes at an unmatched global scale. This creates a continuous feedback loop that helps us identify quality, readiness, and fit earlier. As applications become a weaker signal because of AI-generated content, increasing application volumes, and changing student behaviors, real outcome data becomes more valuable. Third, we are scaling these advantages and have established foundations to build on across AI, data, technology, and partnerships. I'll now move on to slide 22. We are investing in building our data assets and improving our propensity tools and matching intelligence so IDP can deliver the best matching outcomes for students and university partners.

Speaker #3: Second, we have a significant data advantage. We have visibility across policy settings at a global scale, on platform student behavior, and applications and outcomes at an unmatched global scale.

Speaker #3: This creates a continuous feedback loop that helps us identify quality readiness and fit earlier. As applications become a weaker signal because of AI-generated content, increasing application volumes and changing student behaviors, real outcome data becomes more valuable.

Speaker #3: And third, we're scaling these advantages and have established foundations to build on across AI, data, technology, and partnerships. I'll now move on to Slide 22.

Speaker #3: We are investing in building our data assets and improving our propensity tools and matching intelligence so IDP can deliver the best matching outcomes for students and university partners.

Speaker #3: Better data capture and analysis will also enable us to respond to changing market opportunities dynamically. Through improved allocation of marketing and counselor resources. At the same time, modernizing platforms and streamlining operations will improve efficiency and support operating leverage.

Tennealle O'Shannessy: Better data capture and analysis will also enable us to respond to changing market opportunities dynamically through improved allocation of marketing and counselor resources. At the same time, modernizing platforms and streamlining operations will improve efficiency and support operating leverage. This will position us to win quality share, supporting market outperformance and yield growth while deepening trust and quality positioning. I'll now take you through our FY27 outlook and priorities on slide 24. We expect that the challenging market conditions will continue into FY27, and we are taking the necessary steps to navigate this. We expect adjusted EBIT of AUD 95 million to AUD 115 million. This is based on a planning assumption that market volumes will be 20% to 30% lower than last year. Our planning assumption reflects the annualization of known policy changes, and what we are seeing in visa data, our pipelines, and deep country-level analysis.

Tennealle O'Shannessy: Better data capture and analysis will also enable us to respond to changing market opportunities dynamically through improved allocation of marketing and counselor resources. At the same time, modernizing platforms and streamlining operations will improve efficiency and support operating leverage. This will position us to win quality share, supporting market outperformance and yield growth while deepening trust and quality positioning. I'll now take you through our FY 2027 outlook and priorities on slide 24. We expect that the challenging market conditions will continue into FY 2027, and we are taking the necessary steps to navigate this. We expect adjusted EBIT of AUD 95 million to AUD 115 million. This is based on a planning assumption that market volumes will be 20% to 30% lower than last year. Our planning assumption reflects the annualization of known policy changes, and what we are seeing in visa data, our pipelines, and deep country-level analysis.

Speaker #3: This will position us to win quality share, supporting market outperformance and yield growth while deepening trust and quality positioning. I'll now take you through our financial year 27 outlook and priorities on Slide 24.

Speaker #3: We expect that the challenging market conditions will continue into FY27, and we're taking the necessary steps to navigate this. We expect adjusted EBIT of 95 million to 115 million dollars.

Speaker #3: This is based on a planning assumption that market volumes will be 20 to 30 percent lower than last year. Our planning assumption reflects the annualization of known policy changes and what we are seeing in visa data, our pipelines, and deep country-level analysis.

Speaker #3: Within this context, we are confident in revenue outperformance driven by yield improvement. We expect student placement in English language testing yield to grow at mid-single-digit percentages.

Tennealle O'Shannessy: Within this context, we are confident in revenue outperformance driven by yield improvement. We expect student placement and English language testing yields to grow at mid-single-digit percentages, and we have plans to deliver a further AUD 15 million net cost saving. Cash generation and working capital discipline will continue to be a priority, and we expect net leverage to remain at or below 1.5 times throughout the year. Our priorities for the year are clear. We will manage financial performance for the volume environment while maintaining our commitment to quality and trust. We will deliver the AUD 15 million net reduction in cost base. Across transformation, we will focus investment to drive productivity, conversion improvements, and revenue diversification. In student placement, we will leverage proprietary data to deliver quality advice that drives confidence and conversion for students and delivers pre-qualified students to clients.

Speaker #3: And we have plans to deliver a further 15 million dollar net cost saving. Past generation and working capital discipline will continue to be a priority, and we expect net leverage to remain at or below 1.5 times throughout the year.

Speaker #3: Our priorities for the year are clear. We will manage financial performance for the volume environment while maintaining our commitment to quality and trust. We will deliver the 15 million net reduction in cost base.

Speaker #3: And across transformation, we will focus investment to drive productivity, conversion improvements, and revenue diversification. In student placement, we will leverage prioritary data to deliver quality advice that drives confidence and conversion for students and delivers pre-qualified students to clients.

Speaker #3: And we will invest in digital and AI-enabled tools and modernize our ERP to improve productivity, flexibility, and reduce cost to serve. On to Slide 25 to finish up.

Tennealle O'Shannessy: We will invest in digital and AI-enabled tools and modernize our ERP to improve productivity, flexibility, and reduce cost to serve. On to slide 25 to finish up. We operate in a large global market, and we are well-positioned to grow share. We are deepening our reputation for quality and trust. We have a clear proprietary data advantage that we're leveraging into matching intelligence to deliver the best outcomes for students, test takers, and university partners. We are well-placed to diversify revenue while increasing agility and reducing cost to serve. We have the cash generation capacity and balance sheet strength to support investment in the transformation and a strong track record of delivery. Thank you all for your time today. Kate, Malcolm, and I will now take questions, and I'll hand you back to the moderator for Q&A.

Speaker #3: We operate in a large global market, and we are well positioned to grow share. We are deepening our reputation for quality and trust. We have a clear proprietary data advantage that we're leveraging into matching intelligence to deliver the best outcomes for students, test takers, and university partners.

Speaker #3: And we are well placed to diversify revenue while increasing agility and reducing cost to serve. We have the cash generation capacity and balance sheet strength to support investment in the transformation and a strong track record of delivery.

Speaker #3: Thank you all for your time today. Kate Malcolm and I will now take questions, and I'll hand you back to the moderator for Q&A.

Operator: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Enzo Ragukonis with Jarden. Please go ahead.

Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone, and wait for your name to be announced. If you wish to cancel your request, please press star two.

Speaker #1: If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Ento Ray Koski with ENP.

Speaker #1: Please go ahead.

Speaker #2: Hi, Danielle. Hi, Kate. Hi, Malcolm. So my first question is around the volume guidance that you've provided. I'm wondering if you can give us a little bit more color around your thinking around the build-up to the 20 to 30 percent volume decline by key destination market.

Enzo Ragukonis: Hi, Tennealle. Hi, Kate. Hi, Malcolm. My first question is around the volume guidance that you've provided. I'm wondering if you can give us a little bit more color around your thinking around the build-up to the 20% to 30% volume decline by key destination market. I'm just conscious that Canada is now a negligible part of the mix, so I presume you're assuming weaker performance in Australia and the UK versus FY26. I'll pause there. I've got a couple of others, but I'll wait for the answer to the first one.

Entcho Raykovski: Hi, Tennealle. Hi, Kate. Hi, Malcolm. My first question is around the volume guidance that you've provided. I'm wondering if you can give us a little bit more color around your thinking around the build-up to the 20% to 30% volume decline by key destination market. I'm just conscious that Canada is now a negligible part of the mix, so I presume you're assuming weaker performance in Australia and the UK versus FY 2026. I'll pause there. I've got a couple of others, but I'll wait for the answer to the first one.

Speaker #2: I mean, I'm just conscious that Canada is now a negligible part of the mix, so I presume you're assuming weaker performance in Australia and the UK versus FY26.

Speaker #2: And maybe I'll pause there. I've got a couple of others, but I'll wait for the answer to the first one.

Speaker #3: Sure. Ento, thanks for the question. It is, Danielle, here. Yeah, so just to go back to the FY27 market volumes down 20 to 30 percent, just as I touched on what we're looking at there is really looking closely at the annualized impact on our pipeline of the key policy changes that have been announced over the last 12 months.

Tennealle O'Shannessy: Sure. Enzo, thanks for the question. It is Tennealle here. Just to go back to the FY27 market volumes down 20% to 30%, just as I touched on, what we are looking at there is really looking closely at the annualized impact on our pipeline of the key policy changes that have been announced over the last 12 months. So we are looking closely at that, the recent visa data, and just what we are seeing in terms of pipeline builds. So what I will do is provide a little bit of color on what we are seeing for FY27 so far in our two key destinations. As you know, the key destinations, the destinations that matter for us are the UK and Australia.

Tennealle O'Shannessy: Sure. Enzo, thanks for the question. It is Tennealle here. Just to go back to the FY 2027 market volumes down 20% to 30%, just as I touched on, what we are looking at there is really looking closely at the annualized impact on our pipeline of the key policy changes that have been announced over the last 12 months. So we are looking closely at that, the recent visa data, and just what we are seeing in terms of pipeline builds. So what I will do is provide a little bit of color on what we are seeing for FY 2027 so far in our two key destinations. As you know, the key destinations, the destinations that matter for us are the UK and Australia.

Speaker #3: And so we're looking closely at that, the recent visa data, and just what we're seeing in terms of pipeline bills. So what I will do is provide a little bit of color on what we're seeing for FY27 so far in our key destinations.

Speaker #3: So as we look into FY27, as you know, the key destinations, the destinations that matter for us are the UK and Australia. So if I start with Australia, at this point, semester two is nearing completion.

Tennealle O'Shannessy: If I start with Australia, at this point, semester two is nearing completion, and what we are seeing is volume declines are trending towards the higher end of the FY27 assumed market decline. So trending towards being down 20%. Really what we are seeing there is a continuation of the trends we have spoken about with the late-stage visa rejections continuing in high volume source markets. So that is, I guess, the Australia side of the story. For the UK fall intake, we are a little bit less progressed in that pipeline. We are around halfway through the pipeline build. What we are seeing there is volume declines are trending towards the bottom end of that FY27 assumed market growth. So closer to the 30%. What we are seeing as the driver for that is both demand and conversion are being affected by the BCA requirements that I referred to.

Tennealle O'Shannessy: If I start with Australia, at this point, semester two is nearing completion, and what we are seeing is volume declines are trending towards the higher end of the FY 2027 assumed market decline. So trending towards being down 20%. Really what we are seeing there is a continuation of the trends we have spoken about with the late-stage visa rejections continuing in high volume source markets. So that is, I guess, the Australia side of the story. For the UK fall intake, we are a little bit less progressed in that pipeline. We are around halfway through the pipeline build. What we are seeing there is volume declines are trending towards the bottom end of that FY 2027 assumed market growth. So closer to the 30%. What we are seeing as the driver for that is both demand and conversion are being affected by the BCA requirements that I referred to.

Speaker #3: And what we're seeing is volume declines are trending towards the higher end of the FY27 assumed market decline. So trending towards being down 20 percent.

Speaker #3: And really what we're seeing there is a continuation of the trends we've spoken about with the late-stage visa rejections continuing in high volume source markets.

Speaker #3: So that's, I guess, the Australia side of the story. For the UK full intake, we're a little bit less progressed in that pipeline. We're around halfway through the pipeline build.

Speaker #3: But what we're seeing there is volume declines are trending towards the bottom end of that FY27 assumed market growth, so closer to the 30 percent.

Speaker #3: What we're seeing as the driver for that is both demand and conversion are being affected by the BCA requirements that I referred to. And what we're seeing in response to that is increased university caution and selectivity in the application process, as well as slower student decision-making.

Tennealle O'Shannessy: What we are seeing in response to that is increased university caution and selectivity in the application process, as well as slower student decision-making. So we are watching this one very closely in the build-up to that fall intake. What we might see there is delays may see a shift in some placements later or reduce overall conversion.

Speaker #3: So we're watching this one very closely in the build-up to that fall intake. But what we might see there is delays may see a shift in some placements later or reduce overall conversion.

Speaker #2: Okay. Thanks, Danielle. That's good color. And just secondly, I guess for the avoidance of doubt, from a volume perspective, do you expect to outperform the market?

Enzo Ragukonis: Okay. Thanks, Tennealle. That is good color. Secondly, I guess for the avoidance of doubt, from a volume perspective, do you expect to outperform the market? I am conscious that you have referenced yield driving revenue outperformance. So is your thinking that your volumes will be better than underlying market volumes?

Entcho Raykovski: Okay. Thanks, Tennealle. That is good color. Secondly, I guess for the avoidance of doubt, from a volume perspective, do you expect to outperform the market? I am conscious that you have referenced yield driving revenue outperformance. So is your thinking that your volumes will be better than underlying market volumes?

Speaker #2: I'm conscious that you've referenced yield-driving revenue outperformance. So I mean, is your thinking that your volumes will be better than underlying market volumes?

Speaker #3: The focus that we have is on driving, I guess, quality growth. And so what we're seeing as we're navigating this, Ento, is that there is different impacts in different parts of the market.

Tennealle O'Shannessy: The focus that we have is on driving, I guess, quality growth. What we are seeing as we are navigating this, Nyo, is that there is different impacts in different parts of the market. You will see us referencing extensively that focus on quality, and that will lead to revenue outperformance as we navigate these conditions.

Speaker #3: So you'll see us referencing extensively that focus on quality and that will lead to revenue outperformance. As we navigate these conditions.

Speaker #2: Okay. So it sounds like you're not necessarily committing to outperformance relative to market. It's just more question of how those quality volumes perform.

Enzo Ragukonis: Okay. It sounds like you are not necessarily committing to outperformance relative to market. It is just more a question of how those quality volumes perform.

Entcho Raykovski: Okay. It sounds like you are not necessarily committing to outperformance relative to market. It is just more a question of how those quality volumes perform.

Speaker #3: That's right. We will be very focused on how these changes in policy settings are impacting the different segments in the market. And I think the deep visibility that we have and our ability to segment the market allows us to participate effectively in these market conditions.

Tennealle O'Shannessy: That is right. We will be very focused on how these changes in policy settings are impacting the different segments in the market. I think, the deep visibility that we have and our ability to segment the market allows us to participate effectively in these market conditions. Our focus will be on driving quality growth, and that will underpin our revenue outperformance.

Speaker #3: But our focus will be on driving quality growth. And that will underpin our revenue outperformance.

Speaker #2: Okay. Got it. Thanks, Danielle. And then I've got a cost sorry, a question around the transformation programming to FY27. Now, you said you expect to incur transformation costs of 40 million to deliver the 15 million of cost base reductions.

Enzo Ragukonis: Okay. Got it. Thanks, Tenille. I have a cost, sorry, a question around the transformation program into FY27. You said you expect to incur transformation costs of AUD 40 million to deliver the AUD 15 million of cost base reductions.

Entcho Raykovski: Okay. Got it. Thanks, Tenille. I have a cost, sorry, a question around the transformation program into FY 2027. You said you expect to incur transformation costs of AUD 40 million to deliver the AUD 15 million of cost base reductions.

Speaker #3: Yeah. Essentially, you nailed it. What you'll see is a larger proportion of our spend this year won't deliver the in-year benefits, but will start to deliver it from FY28.

Kate Koch: Yeah, essentially, you nailed it. What you will see is a larger proportion of our spend this year will not deliver the in-year benefits, but will start to deliver it from FY28. As I said, about half of that AUD 40 million is on the ERP and more broad back office modernization program. We are delivering some benefits from that in-year, but the lion's share will start from once we go live, which we are expecting at the moment early Q1 FY28. The remainder of the spend relates to the other items around our continual look at the org structure. We have some areas, some cost categories and areas where we think we can be more efficient. That is how it is playing out for FY27. For FY28, we expect that spend to materially step down.

Kate Koch: Yeah, essentially, you nailed it. What you will see is a larger proportion of our spend this year will not deliver the in-year benefits, but will start to deliver it from FY 2028. As I said, about half of that AUD 40 million is on the ERP and more broad back office modernization program. We are delivering some benefits from that in-year, but the lion's share will start from once we go live, which we are expecting at the moment early Q1 FY 2028. The remainder of the spend relates to the other items around our continual look at the org structure. We have some areas, some cost categories and areas where we think we can be more efficient. That is how it is playing out for FY 2027. For FY 2028, we expect that spend to materially step down.

Speaker #3: So as I said, about half of that 40 million is on the ERPM or broad back office modernization program. We are delivering some benefits from that in year, but the lion's share will start from once we go live.

Speaker #3: Which we're expecting at the moment, sort of early Q1, FY28. And then the remainder of the spend relates to the other items around our continual look at the org structure, we've got some cost categories and areas where we think we can be more efficient.

Speaker #3: So that's how it's playing out for FY27. And for FY28, we expect that spend to materially step down.

Speaker #2: Okay. So should we take out of that that 15 million isn't the full reduction? There's sort of more coming in FY28? Okay. I mean, any sort of early color on Quantum?

Enzo Ragukonis: Okay. Should we take out of that AUD 15 million is not the full reduction? There is more coming in FY-

Entcho Raykovski: Okay. Should we take out of that AUD 15 million is not the full reduction? There is more coming in FY-

Kate Koch: Yes

Enzo Ragukonis: 28? Okay.

Entcho Raykovski: 28? Okay.

Kate Koch: Yeah

Enzo Ragukonis: Any sort of early color on quantum?

Entcho Raykovski: Any sort of early color on quantum?

Speaker #3: No. We haven't gone there yet. However, we're just going to have a continual focus on productivity, efficiency going forward. I think it will become more BAU.

Kate Koch: No, we haven't gone there yet. However, we're just going to have a continual focus on productivity efficiency going forward. I think it will become more BAU. If I'm looking at a planning assumption for FY28, the one-off cost, as I said, will be lower, because our restructuring charges are going to drop away and our ERP will go live. The 2026 and 2027 savings will be sustainable into 2028. There will be annualization benefits from 2027 into 2028, and we'll say more about the incremental savings from that ERP-led platform modernization as we get closer to the time. Lastly, we are just continually looking for additional growth productivity benefits in the business, and it's becoming a bigger muscle for this business, which gives us confidence in the future.

Kate Koch: No, we haven't gone there yet. However, we're just going to have a continual focus on productivity efficiency going forward. I think it will become more BAU. If I'm looking at a planning assumption for FY 2028, the one-off cost, as I said, will be lower, because our restructuring charges are going to drop away and our ERP will go live. The 2026 and 2027 savings will be sustainable into 2028. There will be annualization benefits from 2027 into 2028, and we'll say more about the incremental savings from that ERP-led platform modernization as we get closer to the time. Lastly, we are just continually looking for additional growth productivity benefits in the business, and it's becoming a bigger muscle for this business, which gives us confidence in the future.

Speaker #3: And if I'm looking at a planning assumption, for FY28, the one-off cost, as I said, will be lower because every structuring charges are going to drop away on our ERP will go live.

Speaker #3: The 26 and 27 savings will be sustainable into 28. There'll be annualization benefits from 27 into 28, and we'll say more about the incremental savings from that ERP-led platform modernization.

Speaker #3: As we get closer to the time so and lastly, we are just continually looking for additional growth productivity benefits in the business. And it's becoming a bigger muscle for this business, which is gives us confidence in the future.

Speaker #2: Okay. Got it. Thanks.

Enzo Ragukonis: Okay. Got it. Thanks.

Entcho Raykovski: Okay. Got it. Thanks.

Speaker #1: Thank you. Our next question comes from the line of Elizabeth Miliatis. With McQuarrie. Please proceed.

Operator: Thank you. Our next question comes from the line of Elizabeth Miliatis with Macquarie. Please proceed.

Speaker #4: Good morning, and thanks for taking my questions. First one, it's just on Canada. Obviously, the Canada market's just been decimated. But in terms of the visa volumes that we're seeing in the last couple of months, it's actually started to improve.

Elizabeth Miliatis: Good morning, and thanks for taking my questions. First one's just on Canada. Obviously, the Canada market's just been decimated. But in terms of the visa volumes that we're seeing in the last couple of months, it actually started to improve. Notably, those visa volumes are a capture of both onshore and offshore visa applications. Just curious what you're seeing from your side of things from Canada. Are you seeing any signs of life there or a bottoming of the market there? Can we ever sort of see that come back to maybe not where it was a few years ago, but at least give you some level of growth to offset some of the weakness elsewhere?

Speaker #4: Notably, though, those visa volumes are a capture of both onshore and offshore visa applications. So just curious what you're seeing from your side of things of Canada from Canada.

Speaker #4: Are you seeing any signs of life there or a bottoming of the market there? And can we ever sort of see that come back to maybe not where it was a few years ago, but at least give you some level of growth to offset some of the weakness elsewhere?

Speaker #3: Thanks for the question, Liz. It's Tenneille here. Look, I'd start by saying, as you know, Canada given the dislocation in that market over the last number of years, is a very small portion of our business today.

Tennealle O'Shannessy: Thanks for the question, Liz. It's Tennealle here. I'd start by saying, as you know, Canada, given the dislocation in that market over the last number of years, is a very small portion of our business today. What we've seen over the last 12 months is it continues to remain deeply impacted by the market collapse that we've seen through the successive policy changes that have come through. What we're navigating in Canada at the moment is no longer related to the supply side cap, but rather what we're navigating is weak student sentiment and demand. As you would well know, visa volumes are well undershooting the cap that's been set in Canada. Even with that backdrop and context, we continue to see elevated visa rejection rates.

Speaker #3: And what we've seen over the last 12 months is it continues to remain deeply impacted by the other market collapse that we've seen through the successive policy changes that have come through.

Speaker #3: So what we're navigating in Canada at the moment is no longer related to the supply side app, but rather what we're navigating is weak student sentiment and demand.

Speaker #3: So as you would well know, visa volumes are well under-shooting the cap that's been set in Canada. But even with that backdrop and context, we continue to see elevated visa rejection rates.

Speaker #3: So I wouldn't have a crystal ball in terms of what would happen in Canada, but we have seen relative stabilization of policies, but still seeing some challenge around student sentiment and visa rejection rates.

Kate Koch: I wouldn't have a crystal ball in terms of what would happen in Canada, but we have seen relative stabilization of policies, but still seeing some challenge around student sentiment and visa rejection rates. Any changes that happen there moving forward, will happen off a very low base for us.

Tennealle O'Shannessy: I wouldn't have a crystal ball in terms of what would happen in Canada, but we have seen relative stabilization of policies, but still seeing some challenge around student sentiment and visa rejection rates. Any changes that happen there moving forward, will happen off a very low base for us.

Speaker #3: But any changes that happen there moving forward will happen off a very low base for us.

Speaker #4: Yep. Okay. Got it. Thank you. And then just in terms of your shifting to alternate markets, so you touched on Malaysia and the Middle East, but in terms of China offset the big hole that Canada has now left for the business, are there any other markets that you're exploring?

Elizabeth Miliatis: Yep. Okay. Got it. Thank you. Just in terms of your shifting to alternate markets, you touched on Malaysia and the Middle East, but in terms of trying to offset the big hole that Canada has now left for the business, are there any other markets that you're exploring, and is there enough out there that may actually fill up that hole?

Speaker #4: And is there enough out there that may actually fill up that hole?

Speaker #3: Yeah. As I mentioned, in the call, one of the great advantages of our scale is we're able to see that early demand signals emerging beyond the traditional Big Four destinations.

Tennealle O'Shannessy: Yeah. As I mentioned in the call, one of the great advantages of our scale is we're able to see that early demand signals emerging beyond the traditional Big Four destinations. One of the behaviors we're seeing from students is they're very pragmatic, and behavior on platform with us is they are applying to multiple destinations. The other thing that I touched on is because of the work that we've done around our underlying platform and technology, our ability to launch and scale in markets efficiently is a capability that we've built. In the first instance, you'll know several years ago, we've got a track record of going into new markets with New Zealand and Ireland. We've recently launched into Malaysia and more softly into the UAE. Yes, we do expect the opportunity set to broaden over time.

Speaker #3: And one of the behaviors we're seeing from students is they're very pragmatic and behavior on platform with us is they are applying to multiple destinations.

Speaker #3: And so the other thing that I touched on is because of the work that we've done around our underlying platform and technology, our ability to launch and scale in markets efficiently is a capability that we've built.

Speaker #3: So in the first instance, you'll know several years ago we've got a track record of going into new markets with New Zealand Islands. We've recently launched into Malaysia and more softly into the UAE.

Speaker #3: And yes, we do expect the opportunity set to broaden over time. The things that attracted us to Malaysia and UAE as essentially the next cabs off the rank, if you like, is what we were seeing in terms of student demand.

Tennealle O'Shannessy: The things that attracted us to Malaysia and UAE as essentially the next cabs off the rank, if you like, is what we were seeing in terms of student demand. These are very attractive markets. There is that well-established demand. There is strong economics. You do see that there is a strong TNE focus in those markets, which means we have the global contracts in place with the quality providers to be able to start with strong scale there. They also have pricing profiles that are comparable to core destinations. We are seeing student flows going to other destinations, too. I am sure you have seen the data too. We will continue to be looking there to see if there is further opportunities for us to go into other destinations over time.

Speaker #3: These are very attractive markets. There's that well-established demand. There's strong economics. So you do see that there is a strong T&E focus in those markets, which means we have the global contracts in place with the quality providers to be able to start with strong scale there.

Speaker #3: And they also have pricing profiles that are comparable to core destinations. We are seeing student flows going to other destinations too. I'm sure you've seen the data too.

Speaker #3: And we'll continue to be looking there to see if there is further opportunities for us to go into other destinations over time.

Speaker #4: Okay. Got it. Thank you. And can I just sneak in one more just on China and the expansion there? Where are you how many locations are you planning to set up there?

Elizabeth Miliatis: Okay, got it. Thank you. Can I just sneak in one more just on China, and the expansion there. How many locations are you planning to set up there and any additional color around the economics of how things will play out?

Speaker #4: And any additional color around the economics of how things will plan play out?

Speaker #3: Yeah. Certainly. So I can talk a little bit about the opportunity and then I'll hand over to Kate to talk through the economics and how it works there.

Tennealle O'Shannessy: Yeah, certainly. I can talk a little bit about the opportunity, and then I will hand over to Kate to talk through the economics and how it works there. This is one we are incredibly excited about and seen really strong traction and progress this year. A strong base build. Just to go back as to a reminder on the why for this one, because I do think it is important to set that context before we go in. China is the world's largest and most attractive testing market. In terms of our footprint and opportunities to diversify revenue into new segments, this is a very attractive opportunity for us. We finished FY26 with 13 test centers, concentrated in the Yangtze River Delta region. We are up to 25 test centers so far in FY27, with plans for further staged rollout.

Tennealle O'Shannessy: Yeah, certainly. I can talk a little bit about the opportunity, and then I will hand over to Kate to talk through the economics and how it works there. This is one we are incredibly excited about and seen really strong traction and progress this year. A strong base build. Just to go back as to a reminder on the why for this one, because I do think it is important to set that context before we go in. China is the world's largest and most attractive testing market. In terms of our footprint and opportunities to diversify revenue into new segments, this is a very attractive opportunity for us. We finished FY 2026 with 13 test centers, concentrated in the Yangtze River Delta region. We are up to 25 test centers so far in FY 2027, with plans for further staged rollout.

Speaker #3: So this is one we're incredibly excited about and seeing really strong traction and progress this year. So a strong base built. But just to go back to a reminder on the why for this one, because I do think it's important to set that context before we go in.

Speaker #3: China is the world's largest and most attractive testing market. So in terms of our footprint and opportunities to diversify revenue into new segments, this is a very attractive opportunity for us.

Speaker #3: We started we finished FY26 with 13 test centers concentrated in the Yangtze River Delta region. And we are up to 25 test centers so far in FY27 with plans for further staged rollout.

Speaker #3: What's been what we're watching really closely, so I think the way we've spoken about our scaling into this market, it is a complex market, is we are taking a careful scaling approach.

Tennealle O'Shannessy: What we are watching really closely, I think the way we have spoken about our scaling into this market, it is a complex market, is we are taking a careful scaling approach. We are focused on quality, we are focused on security and partner confidence. What has been really pleasing is that the early performance has been very positive, encouraging customer feedback, really strong positive endorsement on socials, those types of things. We are not laying out, for commercial sensitivity reasons, what the scale-up looks like. What we would say is we see that the profit opportunity is attractive over time, and we will keep building it in a disciplined way. Now, there are some unique aspects to the economics because we are working with a third-party established testing provider. I might just briefly hand over to Kate, and she can just provide some color on the economics.

Speaker #3: We're focused on quality, we're focused on security and partner confidence. So what's been really pleasing is that the early performance has been very positive, encouraging customer feedback, really strong positive endorsement on socials, those types of things.

Speaker #3: So we aren't laying out for commercial sensitivity reasons what the scale-up looks like, but what we would say is we see that the profit opportunity is attractive over time, and we'll keep building it in a disciplined way.

Speaker #3: Now, there are some unique aspects to the economics because we are working with a third-party established testing provider. So I might just briefly hand over to Kate and she can just provide some color on the economics.

Speaker #2: Yeah. Hi Liz. So China for us is a third-party delivery model. So what you'll see is the gross margin is a bit lower than where we own delivery.

Kate Koch: Yeah. Hi, Liz. China for us is a third-party delivery model, so what you will see is the gross margin is a bit lower than where we own delivery. I think from our perspective, the opportunity is compelling because of the size, actually the price point and just generally long-term demand characteristics. So, our financial objective here is clear. We are going to build a large gross profit dollar contribution over time, with that real focus on quality, execution and discipline around it.

Speaker #2: But I think for our perspective, the opportunities compelling because of the size actually the price point. And just generally long-term demand characteristics. So our financial objective here is clear.

Speaker #2: We're going to build a large gross profit dollar contribution over time. With that real focus on quality execution and discipline around it.

Speaker #4: Okay. Thank you. And just a number of locations you're planning on opening. We've heard 50, but just confirming, is that correct? Or something bigger or smaller?

Elizabeth Miliatis: Okay. Thank you. Just the number of locations you are planning on opening. We have heard 50, but just confirming, is that correct or something bigger or smaller?

Kate Koch: We have not announced that, as Tennealle said, because we think it is commercially confidential. You can keep watching this space and see how we go.

Speaker #3: We haven't announced that as Tenneille said because we think it's commercially confidential. But you can keep watching this space and see how we go.

Speaker #4: Okay. Thank you.

Elizabeth Miliatis: Okay. Thank you.

Speaker #1: Thank you. Our next question comes from the line of Sriharsh Singh. With Bank of America. Please proceed.

Operator: Thank you. Our next question comes from the line of Shirish Garg with Bank of America. Please proceed.

Speaker #5: Yep. Hey there. Three questions from my side. First, touching on Neil, there's a little bit of a slowdown in average placement fee into second half.

Shirish Garg: Yep. Hey there. Three questions from my side. First, touching on yield, there's a little bit of a slowdown in average placement fee into H2, and it seems that the H2 placement fee growth for Australia is now below the inflation and tuition fee. What's driving that? Could you talk a little bit about the Australia placement fee dynamic? I've heard that many universities are now moving from commission rights on gross tuition to commission rights on net tuition. Are you seeing that in your conversation with universities, and how should we think about. You've guided the placement fee growth, but any color would be great on that.

Sriharsh Singh: Yep. Hey there. Three questions from my side. First, touching on yield, there's a little bit of a slowdown in average placement fee into H2, and it seems that the H2 placement fee growth for Australia is now below the inflation and tuition fee. What's driving that? Could you talk a little bit about the Australia placement fee dynamic? I've heard that many universities are now moving from commission rights on gross tuition to commission rights on net tuition. Are you seeing that in your conversation with universities, and how should we think about. You've guided the placement fee growth, but any color would be great on that.

Speaker #5: And it seems that the second half placement fee growth for Australia is now below the inflation in tuition fee. So what's driving that? Could you talk a little bit about the Australia placement fee dynamic?

Speaker #5: I've heard that many universities are now moving from commission rights on gross tuition to commission rights on net tuition. So are you seeing that in your conversation with universities?

Speaker #5: And how should we think about you've guided the placement fee growth, but any color would be great on that.

Speaker #3: Hi Sharif. It's Kate. Yes. You're right. We did see it drop off. You'll remember in the first half, we did mention that the one-time yield benefit we got from the change in our global billing processes and particularly favorable destination mix towards the UK was going to slow down in the second half and not repeat into FY27.

Kate Koch: Hi, Shirish, it's Kate. Yes, you're right. We did see it drop off. But you'll remember in H1, we did mention that the one-time yield benefit we got from the change in our global billing processes and particularly favorable destination mix towards the UK was going to slow down in H2 and not repeat into FY27. If I look at that over the whole yield performance for FY26, it made up just over a third. So that probably helps you bridge, the FY26 yield performance versus our guidance for next year. Then in terms of your question around what we're seeing from university partners, I'll hand to Tennealle on that one.

Kate Koch: Hi, Shirish, it's Kate. Yes, you're right. We did see it drop off. But you'll remember in H1, we did mention that the one-time yield benefit we got from the change in our global billing processes and particularly favorable destination mix towards the UK was going to slow down in H2 and not repeat into FY 2027. If I look at that over the whole yield performance for FY 2026, it made up just over a third. So that probably helps you bridge, the FY 2026 yield performance versus our guidance for next year. Then in terms of your question around what we're seeing from university partners, I'll hand to Tennealle on that one.

Speaker #3: And if I look at that as a over the whole yield performance for FY26, it made up just over a third. So that probably helps you bridge the FY26 yield performance versus our guidance for next year.

Speaker #3: And then in terms of your question around what we're seeing from university partners, I'll hand to Tenneille on that one.

Speaker #4: Yeah. Sriharsh, happy to provide a little bit of color here. So what we would say is we aren't seeing any changes to commission structures or how that works.

Tennealle O'Shannessy: Yes, Surash, happy to provide a little bit of color here. What we would say is we aren't seeing any changes to commission structures or how that works. I think it's probably important to just go back and remind, reflect on what's happening in the sector. As a reminder, our fee model, if you like, is a completely risk-free model for our university partners. So they only pay for a successfully completed enrollment. That has proven to be something that's highly valuable for them as they're navigating a period where there is risk and uncertainty around evaluating genuine students, managing through a large number of applications, navigating the visa approval processes. I think as we called out in the results, IDP, through the quality of our processing, is able to stand out with visa approval rates well above market averages.

Speaker #4: And I think it's probably important to just go back and remind reflect on what's happening in the sector. And so as a reminder, our fee model, if you like, is a completely risk-free model for our university partners.

Speaker #4: So they only pay for a successfully completed enrollment. And so that has proven to be something that's highly valuable for them as they're navigating a period where there is risk and uncertainty around evaluating genuine students, managing through a large number of applications, navigating the visa approval processes.

Speaker #4: And I think as we called out in the results, IDP through the quality of our processing is able to stand out with visa approval rates well above market averages.

Speaker #4: So that proves the resilience of our commercial model as we're navigating this period and really underpins our confidence in continuing to expand our yield into the future.

Tennealle O'Shannessy: So that proves the resilience of our commercial model as we are navigating this period, and really underpins our confidence in continuing to expand our yields into the future.

Speaker #5: Thank you. That's great. Second question on the new market initiatives like UAE and Malaysia. If I just take a slightly longer view, two or three years, where do you think the volumes to these markets could scale up?

Shirish Garg: Okay. That is great. Second question on the new market initiatives like UAE and Malaysia. If I just take a slightly longer view, 2 or 3 years, where do you think the volumes to these markets could scale up? Is it fair to assume that the average placement fee for these markets is AUD 3,000 or less?

Sriharsh Singh: Okay. That is great. Second question on the new market initiatives like UAE and Malaysia. If I just take a slightly longer view, 2 or 3 years, where do you think the volumes to these markets could scale up? Is it fair to assume that the average placement fee for these markets is AUD 3,000 or less?

Speaker #5: And is it fair to assume that the average placement fee for these markets is $3,000 or less?

Tennealle O'Shannessy: Yes. Look, I think when we look at, we always go back to what we are seeing in terms of student behavior and drivers of student behavior. What we would say is the student demand for access to international education, that demand profile remains well intact, as we would expect it to. What we also said is the change in behavior we are seeing is students are navigating the complexity, which is the policy settings in the Big Four, and increasingly looking at opportunities outside the Big Four, looking at factors like visa certainty, but also looking more broadly at things like access to employment outcomes and ROI, and cost of living and things like that. So we would expect that the role of the, we have heard it spoken about the Big Four transitioning to the Big 14. I think that that is probably right.

Speaker #3: Yeah. So look, I mean, I think when we look at we always go back to what we're seeing in terms of student behavior and drivers of student behavior.

Speaker #3: And what we would say is the student demand for access to international education, that demand profile remains well intact. As we would expect it to.

Speaker #3: What we also said is the change in behavior we're seeing is students are navigating the complexity, which is the policy settings in the Big Four.

Speaker #3: And increasingly, looking at opportunities outside the Big Four, looking at factors like visa certainty, but also looking more broadly at things like access to employment outcomes and ROI and cost of living and things like that.

Speaker #3: So we would expect that the role of the we've heard it spoken about the Big Four transitioning to the Big Four team. I think that that's probably right.

Speaker #3: You'd expect to see a more diversification of students in terms of where they're traveling and the destinations they're considering. The great news as we said is the work that we've done on our platform means that we've both got the early visibility of those students' flows.

Tennealle O'Shannessy: You would expect to see a more diversification of students in terms of where they are traveling and the destinations they are considering. The great news, as we said, is the work that we have done on our platform means that we have both got the early visibility of those student flows. We have got the global contracts in place with university partners, meaning we are able to scale quickly into new destinations. Because of the work we have done on our underlying technology and platform, we are able to launch, enter, and scale quickly and efficiently based on that work we have done. Sherif, on yield, yes, for modeling purposes, I would model more like a Canadian yield outcome than a UK yield outcome.

Speaker #3: We've got the global contracts in place with university partners, meaning we're able to scale quickly into new destinations. And because of the work we've done on our underlying technology and platform, we're able to launch enter and scale quickly and efficiently based on that work we've done.

Speaker #3: And then Sharif on yield, yeah, I would if a modeling purposes, I would model more like a Canadian yield outcome than a UK yield outcome.

Speaker #5: Typically. And last question on last question on Niles. Look, the volumes are stabilizing a little bit. So that's positive news. But how should we how are you thinking about positioning IELTS in a world where some governments adopting at-home testing?

Shirish Garg: Super clear. Last question on IELTS. The volumes are stabilizing a little bit, so that's positive news. How are you thinking about positioning IELTS in a world where some governments are adopting at-home testing? IELTS had to pull out the whole tender. I am not sure, but maybe the security protocols are improving, and 3, 4 years down the line, more governments would be looking at at-home testing. How should we think about or how do you think about defending the IELTS market-leading position? Thanks.

Sriharsh Singh: Super clear. Last question on IELTS. The volumes are stabilizing a little bit, so that's positive news. How are you thinking about positioning IELTS in a world where some governments are adopting at-home testing? IELTS had to pull out the whole tender. I am not sure, but maybe the security protocols are improving, and 3, 4 years down the line, more governments would be looking at at-home testing. How should we think about or how do you think about defending the IELTS market-leading position? Thanks.

Speaker #5: So IELTS had to pull out of the whole tender I'm not sure, but maybe the security protocols are improving. And three, four years down the line, more governments would be looking at at-home testing.

Speaker #5: So how should we think about or how should you how do you think about defending the IELTS market-leading position? Thanks.

Speaker #3: Yeah. So happy to jump in there. So I would start by saying IELTS remains the global benchmark in high-stakes English language testing. So it's brand.

Tennealle O'Shannessy: Yeah. Happy to jump in there. I would start by saying IELTS remains the global benchmark in high-stakes English language testing. Its brand, its recognition, its quality positioning is simply unmatched. We acknowledge the market is competitive, but you've seen the durable strengths playing through. Recognition, trust, security, scale, and government acceptance. You are seeing that, as you rightly point out, flow through into the performance of IELTS, that resilience that's coming through, in terms of the relative performance, looking at what's happening in market conditions. We continue to innovate the IELTS product. You will see innovations coming through in terms of product, marketing, booking conversion, test day experience.

Speaker #3: It's recognition. It's quality positioning is simply unmatched. So we acknowledge the market is competitive, but you've seen the durable strengths playing through. Recognition, trust, security, scale, and government acceptance.

Speaker #3: And you're seeing that as you rightly point out, flows through into the performance of IELTS. That resilience that's coming through in terms of the relative performance looking at what's happening in market conditions.

Speaker #3: So we continue to innovate the IELTS product you will see innovations coming through in terms of product, marketing, booking conversion, test day experience. We've spoken about the launches that came through this year with digital-based initiatives like IOCP, which essentially takes the traditional IELTS product that was delivered wholly paper-based and transitions that into a computer-based delivery while still providing test takers with the flexibility to physically write on paper if that's what they prefer.

Tennealle O'Shannessy: We've spoken about the launches that came through this year with digital-based initiatives like IOCP, which essentially takes the traditional IELTS product that was delivered wholly paper-based and transitions that into a computer-based delivery while still providing test takers with the flexibility to physically write on paper if that's what they prefer. The reason why that is so important is to provide them choice and flexibility, because quite often, test takers have completed a lot of their test preparation, the courses and the work they've done, in writing. They are just much more comfortable doing it that way. What I would say, use cases. I think the starting position of brand, very strong partnership and recognition advantages, access to capital to be able to invest, positions IELTS very well to be able to navigate the increasing digitization of the sector.

Speaker #3: And the reason why that is so important is to provide them choice and flexibility because quite often test takers have completed a lot of their test preparation that the courses and the work they've done in writing.

Speaker #3: So they're just much more comfortable doing it that way. So what I would. Use cases. So I think the starting position of brand, very strong partnership and recognition advantages, access to capital to be able to invest, positions IELTS very well to be able to navigate the increasing digitization of the sector.

Speaker #5: That's good, Kalla. Thank you.

Shirish Garg: That's good, Tenille. Thank you.

Sriharsh Singh: That's good, Tenille. Thank you.

Speaker #1: Thank you. Our next question comes from the line of Josh Kannourakis. With Baron Joey. Please proceed.

Operator: Thank you. Our next question comes from the line of Josh Kenrick with Barrenjoey. Please proceed.

Speaker #5: Hi, Tennealle Kate from Malcolm. And apologies if this has been asked already. Just in terms of some of the potential for market share gains, can we just go through in terms of certainly in the UK specifically, have you seen many of the universities adopting, I guess, more of the agent quality frameworks?

Josh Kenrick: Hi, Tennealle, Kate and Malcolm, and apologies if this has been asked already. Just in terms of some of the potential for market share gains, can we just go through, in terms of certainly the UK specifically, have you seen many of the universities adopting, I guess, more of the agent quality frameworks, and has that sort of seen you add many new customers? Then the second part of the question is just in terms of some of those additional services, given the extra compliance on the universities, how are you assisting them in this, the potential additional revenue stream?

Josh Kannourakis: Hi, Tennealle, Kate and Malcolm, and apologies if this has been asked already. Just in terms of some of the potential for market share gains, can we just go through, in terms of certainly the UK specifically, have you seen many of the universities adopting, I guess, more of the agent quality frameworks, and has that sort of seen you add many new customers? Then the second part of the question is just in terms of some of those additional services, given the extra compliance on the universities, how are you assisting them in this, the potential additional revenue stream?

Speaker #5: And has that sort of seen you at many new customers? And then the second part of the question is just in terms of some of those additional services, given the extra compliance on the universities, how are you assisting them?

Speaker #5: And is that a potential additional revenue stream?

Speaker #3: Hi, Josh. Yeah, great question. Thank you. It's Neil. I'll take that one. And I think you touched on the threads of the answer in your question.

Tennealle O'Shannessy: Hi, Josh. Yeah, great question. Thank you. It's Tennealle. I'll take that one. I think you touched on the threads of the answer in your question. So we have seen it as a unique opportunity to drive share, and I think that's highlighted in the strong client wins and upsells we saw during the period. So FY26, we delivered 32 new wins and 66 upsells. If I look at UK specifically there, UK represented around half of that new business. So that really reflects the market share opportunity. So that's on the new clients, so the opportunity to secure clients that perhaps previously haven't considered working with agents and are now increasingly open to that when they see the quality benefits that come through.

Tennealle O'Shannessy: Hi, Josh. Yeah, great question. Thank you. It's Tennealle. I'll take that one. I think you touched on the threads of the answer in your question. So we have seen it as a unique opportunity to drive share, and I think that's highlighted in the strong client wins and upsells we saw during the period. So FY 2026, we delivered 32 new wins and 66 upsells. If I look at UK specifically there, UK represented around half of that new business. So that really reflects the market share opportunity. So that's on the new clients, so the opportunity to secure clients that perhaps previously haven't considered working with agents and are now increasingly open to that when they see the quality benefits that come through.

Speaker #3: So we have seen it as a unique opportunity to drive share. And I think that's highlighted in the strong client wins and upsells we saw during the period.

Speaker #3: So FY26, we delivered 32 new wins. And 66 upsells. And if I look at UK specifically there, UK represented around half of that new business.

Speaker #3: So that really reflects the market share opportunity. As you write so that's on the new clients. So the opportunity to secure clients that perhaps previously haven't considered working with agents and are now increasingly open to that when they see the quality benefits that come through.

Speaker #3: The other opportunity we're seeing and this is really what I was trying to bring to life with that deeper focus on what's happening with the shift in market.

Tennealle O'Shannessy: The other opportunity we're seeing, and this is really what I was trying to bring to life with that deeper focus on what's happening with the shift in market. As you rightly point out, with governments focusing on quality and compliance and putting higher requirements and higher thresholds on universities, there is much more complexity that universities have to navigate, and they're very much looking to a trusted partner that they can work with. So anecdotally, the way that that's coming through, and clearly IDP stands out there. We have quality across everything from how we onboard and train our counselors, how we incentivize them, and that reflects through to our trust and quality metrics, NPS metrics, and our superior visa approval rates.

Speaker #3: As you rightly point out, with governments focusing on quality and compliance and putting higher requirements and higher thresholds on universities, there is much more complexity that universities have to navigate.

Speaker #3: And they're very much looking to a trusted partner that they can work with. So anecdotally, the way that that's coming through. And clearly, IDP stands out there.

Speaker #3: We have quality across our everything from how we onboard and train our counselors, how we incentivize them. And that reflects through to our trust and quality metrics.

Speaker #3: NPS metrics and our superior visa approval rates. So anecdotally, we're getting universities approaching us, looking for things like over time, would we consider being a white label solution to support them with their broader volumes?

Tennealle O'Shannessy: Anecdotally, we are getting universities approaching us, looking for things like, over time, would we consider being a white label solution to support them with their broader volumes? Would we consider being an exclusive agent for certain markets where they really want to be confident on the quality? The short answer is it does also, over time, unlock opportunities for IDP to really position even more deeply as a strategic partner for the universities that we work with. That is really the idea that underpins the work we are doing in the next phase of our transformation, where we are looking at how we can continually improve and leverage the data and insights that we have to improve the quality of the matching and outcomes we can deliver for our university partners.

Speaker #3: Would we consider being an exclusive agent for certain markets where they really want to be confident on the quality? So the short answer is it does also over time unlock opportunities for IDP to really position even more deeply as a strategic partner for the universities that we work with.

Speaker #3: And that is really the idea that underpins the work we're doing in the next phase of our transformation. Where we're looking at how we can continually improve and leverage the data and insights that we have to improve the quality of the matching and outcomes we can deliver for our university partners.

Speaker #5: That's great, Neil. Extra fantastic extra color. Just, I guess, further that on more the nearer term impact. Obviously, that's significant amount of new wins and upsells across 26.

Josh Kenrick: That is great, Tennealle. Fantastic extra color. Just, I guess, further to that on more the nearer-term impact, obviously that is a significant amount of new wins and upsells across 2026, but I imagine in terms of that converting to the AUD and cents, not all of that would have happened then. I guess if some of that carries into next year, is there anything you can sort of talk to about how much that sort of impacted into 2026 versus some of those deals and new signings sort of also playing into the 2027 numbers? Is that something that gives you the confidence around obviously outperforming the market expectation?

Josh Kannourakis: That is great, Tennealle. Fantastic extra color. Just, I guess, further to that on more the nearer-term impact, obviously that is a significant amount of new wins and upsells across 2026, but I imagine in terms of that converting to the AUD and cents, not all of that would have happened then. I guess if some of that carries into next year, is there anything you can sort of talk to about how much that sort of impacted into 2026 versus some of those deals and new signings sort of also playing into the 2027 numbers? Is that something that gives you the confidence around obviously outperforming the market expectation?

Speaker #5: But I imagine in terms of that converting to the dollars and cents, not all of that would have happened then, I guess, if some of that carries into next year.

Speaker #5: Is there anything you can sort of talk to about how much that sort of impacted into 26 versus some of those deals and new signings sort of more so playing into the 27 numbers?

Speaker #5: And is that something that gives you the confidence around, obviously, outperforming the market expectation?

Speaker #3: Yeah, Josh, happy to answer that one. So you are right. The nature of these deals is they're entered into over time in the year.

Tennealle O'Shannessy: Yeah, Josh, happy to answer that one. So you are right. The nature of these deals is they are entered into over time in the year, and typically, as you know, the value is unlocked because they are essentially setting up a relationship that drives revenue opportunities into perpetuity, and so you would see the benefit of that more so in the following year and subsequent years. Perhaps the clearest way we can bring it to life for you, and I will hand over to Kate shortly to provide a breakdown of yield in a little bit more color. What we tend to do is have a look at the drivers of yield for FY26, understanding how much of that related to work that we have done around new clients and upsells and changes in commission and those types of things.

Tennealle O'Shannessy: Yeah, Josh, happy to answer that one. So you are right. The nature of these deals is they are entered into over time in the year, and typically, as you know, the value is unlocked because they are essentially setting up a relationship that drives revenue opportunities into perpetuity, and so you would see the benefit of that more so in the following year and subsequent years. Perhaps the clearest way we can bring it to life for you, and I will hand over to Kate shortly to provide a breakdown of yield in a little bit more color. What we tend to do is have a look at the drivers of yield for FY 2026, understanding how much of that related to work that we have done around new clients and upsells and changes in commission and those types of things.

Speaker #3: And typically, as you know, the value is unlocked because they're essentially setting up a relationship that drives revenue opportunities into perpetuity. And so you would see the benefit of that more so in the following year and subsequent years.

Speaker #3: Perhaps the clearest way we can bring it to life for you and I'll hand over to Kate shortly to provide a breakdown of yield in a little bit more color.

Speaker #3: But what we tend to do is have a look at the drivers of yield for FY26, understanding how much of that related to work that we've done around new clients and upsells and changes in commission and those types of things.

Speaker #3: So I'll just hand over to Kate to provide a bit of color there.

Tennealle O'Shannessy: I will just hand over to Kate to provide a bit of color there.

Speaker #4: Sure. So hi, Josh. So I'd say from the 11% yield we had in FY26, about half was a combination of annual tuition and new client wins and extensions.

Kate Koch: Sure. So hi, Josh. So I'd say from the 11% yield we had in FY26, about half was a combination of annual tuition and new client wins and extensions. It is hard for us to always break it definitively into what is new client wins and not. From the analysis we have done, I'd say about half of the half, so about 3%, is from the new client wins and extensions, and that is kind of what we aim for probably most years. Some years it is a little more, some years it is a little less. So you would see that coming through our yields, particularly given that sometimes we have clients where we are placing volumes already, and then we begin to get paid for them. So obviously that has an immediate and quite significant impact.

Kate Koch: Sure. So hi, Josh. So I'd say from the 11% yield we had in FY 2026, about half was a combination of annual tuition and new client wins and extensions. It is hard for us to always break it definitively into what is new client wins and not. From the analysis we have done, I'd say about half of the half, so about 3%, is from the new client wins and extensions, and that is kind of what we aim for probably most years. Some years it is a little more, some years it is a little less. So you would see that coming through our yields, particularly given that sometimes we have clients where we are placing volumes already, and then we begin to get paid for them. So obviously that has an immediate and quite significant impact.

Speaker #4: And it's hard for us to always break it definitively into what's new client wins and not. But from the analysis we've done, I'd say about half of the half, so about 3%, is from the new client wins and extensions.

Speaker #4: And that's kind of what we aim for. Probably most years, some years is a little more, some years is a little less. So you see that coming through our yields.

Speaker #4: Particularly given that sometimes we have clients where we are placing volumes already, and then we begin to get paid for them. So obviously, that has an immediate and quite significant impact.

Speaker #4: Secondly, I'd say for this year, we got another 1% just under 1% from the student essentials growth in penetration and also APU. And then the remainder of the yield growth, there was about just under a quarter from the destination mix, with a higher proportion of UK, which was offset a bit, actually, by shift in study sector mix.

Kate Koch: Secondly, I'd say for this year, we have got another 1%, just under 1% from the Student Essentials growth in penetration and also ARPU. Then the remainder of the yield growth, it was about just under a quarter from the destination mix with a higher proportion of UK, which was offset a bit actually by a shift in study sector mix. Particularly in Australia, we had a lot of Group of Eight contribution into FY26, mainly from China volumes. Lastly, we got that one-time benefit from the improvement in global billing processes. But that is under a fifth, actually almost about 10% of the increase. So while that will not repeat, a lot of what we have delivered is repeating into FY27, which is in our guidance.

Kate Koch: Secondly, I'd say for this year, we have got another 1%, just under 1% from the Student Essentials growth in penetration and also ARPU. Then the remainder of the yield growth, it was about just under a quarter from the destination mix with a higher proportion of UK, which was offset a bit actually by a shift in study sector mix. Particularly in Australia, we had a lot of Group of Eight contribution into FY 2026, mainly from China volumes. Lastly, we got that one-time benefit from the improvement in global billing processes. But that is under a fifth, actually almost about 10% of the increase. So while that will not repeat, a lot of what we have delivered is repeating into FY 2027, which is in our guidance.

Speaker #4: Particularly in Australia, we had our lower group of eight contribution into FY26, mainly from China volumes. And then lastly, we got that one-time benefit from the improvement in global billing processes.

Speaker #4: So but that's under a fifth, actually, almost about 10% of the increase. So while that won't repeat, so a lot of what we've delivered is repeating into FY27, which is in our guidance.

Speaker #5: That's great. And my final question was just with regard to something you touched on just then, Kate, and Tenneille, with regard to some of the more, I guess, performance-based potential contracts that we've heard about in the UK and otherwise.

Josh Kenrick: That is great. My final question was just with regard to something you touched on just then, Kate and Tennealle, with regard to some of the more, I guess, performance-based potential contracts that we have heard about in the UK and otherwise. Is that becoming more commonplace in this challenged environment? I guess what does that give you in terms of an opportunity in particular markets? Obviously, we know you are student first, but does that give you an opportunity to keep those yields a bit higher for longer over the medium term?

Josh Kannourakis: That is great. My final question was just with regard to something you touched on just then, Kate and Tennealle, with regard to some of the more, I guess, performance-based potential contracts that we have heard about in the UK and otherwise. Is that becoming more commonplace in this challenged environment? I guess what does that give you in terms of an opportunity in particular markets? Obviously, we know you are student first, but does that give you an opportunity to keep those yields a bit higher for longer over the medium term?

Speaker #5: Is that becoming more commonplace in this challenged environment? And I guess, what does that give you in terms of an opportunity in particular markets?

Speaker #5: Obviously, we know your student first, but does that give you an opportunity to keep those yields a bit higher for longer over the medium term?

Speaker #4: No. As you know, Josh, our counselors don't know the commission rates. So they're very focused on the best match and the best quality match for our students and universities, which we intend to keep that way.

Kate Koch: No, as you know, Josh, our counselors do not know the commission rates, so they are very focused on the best match and the best quality match for our students and universities, which we intend to keep that way. That said, I guess, of the more than 60 clients that we have renegotiated terms with, you will see, as we provide more volume to them, we can get higher commissions, but that sort of is around courses that are in demand and when we look at our source markets, what people want to study.

Speaker #4: That said, I guess, of the more than 60 clients that we've renegotiated terms with, you will see as we provide more volume to them, we can get higher commissions.

Speaker #4: But that doesn't that sort of. Is on around courses that are in demand and when we look at our source markets where what people want to study.

Speaker #4: So it's not going to be part of our recommendation engine that it will optimize our commissions, going forward, because we think the we know, actually, from surveying students that trust that we will protect their data, that we will do what's best for them, not necessarily what's the ultimate profit maximization for IDP.

Kate Koch: It is not going to be part of our recommendation engine that it will optimize our commissions going forward because we think, well, we know, actually, from surveying students that trust that we will protect their data, that we will do what is best for them, not necessarily what is the ultimate profit maximization for IDP is the best way to go to provide that quality trust over time, not just for one year.

Speaker #4: Is the best way to go to provide that quality trust over time, not just for one year.

Speaker #5: Thanks, Kate. Thanks, Tenneille. Appreciate it.

Josh Kenrick: Thanks, Kate. Thanks, Tennealle. Appreciate it.

Josh Kannourakis: Thanks, Kate. Thanks, Tennealle. Appreciate it.

Speaker #1: Thank you. Our last question comes from the line of Tim Plumbe, with UBS. Please proceed.

Operator: Thank you. Our last question comes from the line of Tim Plumbe with UBS. Please proceed.

Speaker #2: Hi, guys. I joined a little bit late, so apologies. If you guys have already answered this, and I heard part of it, but just in terms of the outlook, or maybe if we start on FY26, based off your assessment of the market for UK, Australia, Canada, etc., what do you think they ended up being down?

Tim Plumbe: Hi, guys. I joined a little bit late, so apologies if you guys have already answered this, and I heard part of it. Just in terms of the outlook or maybe if we start on FY26, based off your assessment of the market for UK, Australia, Canada, et cetera, what do you think they ended up being down? What do you think the UK was down in FY26, and what do you think Australia was down? How does that compare to your volumes?

Tim Plumbe: Hi, guys. I joined a little bit late, so apologies if you guys have already answered this, and I heard part of it. Just in terms of the outlook or maybe if we start on FY 2026, based off your assessment of the market for UK, Australia, Canada, et cetera, what do you think they ended up being down? What do you think the UK was down in FY 2026, and what do you think Australia was down? How does that compare to your volumes?

Speaker #2: What do you think the UK was down in FY26, and what do you think Australia was down? And how does that compare to your volumes?

Speaker #3: You mean sorry, hi, Tim. It's Kate. Market performance from what we can see from visa grants, I guess, in the market, Australia is pretty up to date, rolling 12 months to June.

Kate Koch: Sorry. Hi, Tim. It's Kate. Market performance, from what we can see from visa grants, I guess, in the market, Australia's pretty up-to-date, rolling 12 months to June. That's sort of towards the 20% level. UK, unfortunately, the data in the UK is pretty dated. It's to March. What we saw is, as these BCA requirements came in, it really did impact visa grant rates and the speed of visas being issued. We don't believe the data that we've got for the UK is actually current. The new UK data comes out at the end of August, so we'll be able to update. Unfortunately, timing's everything in life, and it's just a little late for these results, but we'll be able to give you much more insight on that then.

Speaker #3: So that's sort of towards the 20% level. UK, unfortunately, the data in the UK is pretty dated. It's too much. And what we saw is, as these BCA requirements came in, it really did impact visa grant rates and the speed of visas being issued.

Speaker #3: So we don't believe the data that we've got for the UK is actually current. The new UK data comes out at the end of August, so we'll be able to update.

Speaker #3: Unfortunately, timing is everything in life, and it's just a little late for these results. But we'll be able to give you much more insight on that then.

Speaker #3: And so most of what we've got is really anecdotal at this point about how the last quarter performed.

Kate Koch: Most of what we've got is really anecdotal at this point about how the last quarter performed.

Speaker #2: Right. So you don't get you don't get updates from the universities that we've got partnerships with in terms of what they're saying from their volumes?

Tim Plumbe: You don't get-

Kate Koch: Yeah, I guess-

Tim Plumbe: You do not get updates from the universities that you have got partnerships with in terms of what they are seeing.

Kate Koch: Yeah

Tim Plumbe: from their volumes?

Speaker #3: Yeah. Yeah. Sorry. Sorry, Tim. I was Tenneille was just about to jump in and add that point. Anecdotally, and that's what Kate was referring to.

Tennealle O'Shannessy: Yeah. Sorry, Tim. It is Tennealle. I was just about to jump in and add that point. Anecdotally, and that is what Kate was referring to, what we are seeing from universities is a real impact as they navigate their BCA requirements. That is flowing through to both a delay in issuing CAS as they are putting in place a lot more checks on the application to ensure that the students that they are issuing a CAS to are visa-ready. That is flowing through. That is then leading to a delay in visa processing and other things.

Speaker #3: What we are seeing from universities is a real impact as they navigate their BCA requirements. So that's flowing through to both a delay in issuing CAS as they are putting in place a lot more checks on the application to ensure that the students that they are issuing a CAS to a visa-ready.

Speaker #3: So that is flowing through. And then that is then leading to a delay in visa processing and other things. So as I spoke about, what we're seeing in the UK in this fall pipeline bills, what we are seeing is that delay.

Tennealle O'Shannessy: As I spoke about what we are seeing in the UK in this fall pipeline build, what we are seeing is that delay, and that might lead to either a push out of some volumes if they cannot be processed prior to commencement of the fall intake or potentially a drop in conversion. Anecdotally, we are seeing a continuation and a step down in the challenges that we started to see in the spring intake, which is to be expected as universities are navigating the BCA requirements.

Speaker #3: And so that might lead to either a push out of some volumes if they can't be processed prior to commencement of the fall intake, or potentially a drop in conversion.

Speaker #3: So anecdotally, we are seeing a continuation and a step down in the challenges that we started to see in the spring intake, which is to be expected as navigating as universities are navigating the BCA requirements.

Speaker #2: That's right. Okay. So I got that in the UK. So if your volumes were down 9% in Australia versus market down 20, is it fair to assume that if you're saying that at the moment, market's down 20, you guys are assuming a similar sort of outperformance within your guidance as what you experienced in FY26?

Tim Plumbe: That's all right. Okay. I get that in the UK. If your volumes are down 9% in Australia versus market down 20%, is it fair to assume that if you're saying that at the moment market's down 20%, you guys are assuming a similar sort of outperformance within your guidance as what you experienced in FY26? If not, what would be the rationale for not expecting a more sort of performance relevant to market?

Tim Plumbe: That's all right. Okay. I get that in the UK. If your volumes are down 9% in Australia versus market down 20%, is it fair to assume that if you're saying that at the moment market's down 20%, you guys are assuming a similar sort of outperformance within your guidance as what you experienced in FY 2026? If not, what would be the rationale for not expecting a more sort of performance relevant to market?

Speaker #2: And if not, what would be the rationale for not expecting similar sort of performance relative to market?

Tennealle O'Shannessy: Yeah. We aren't guiding to our volumes, because the message that we're providing is that we will continue to focus on quality volume and quality share gains. We are very confident in our ability for our revenue to outperform volumes, and that will be our focus. Yeah. That's what we've said as it relates to FY27 guidance.

Speaker #3: Yeah.

Speaker #4: We aren't guiding to our volumes, but because the message that we're providing is that we will continue to focus on quality volume and quality share gain.

Speaker #4: So we are very confident in our ability to for our revenue to outperform volumes, and that will be our focus. Yeah. So that's what we've said as it relates to FY27 guidance.

Speaker #2: Okay. Got it. And then just so one clarification in terms of the 15 mil cost base reduction, is that a 15 million dollar program that's being implemented in FY27, or is that a flow-through benefit from changes made to the back end of FY26 and some of the benefits from FY27?

Tim Plumbe: Okay, got it. Just one clarification in terms of the AUD 15 million cost base reduction. Is that an AUD 15 million program that's being implemented in FY27, or is that a plenary benefit from changes made in the back end of FY26 and some of the benefits from FY27, and then you'll get ongoing benefits in FY28?

Tim Plumbe: Okay, got it. Just one clarification in terms of the AUD 15 million cost base reduction. Is that an AUD 15 million program that's being implemented in FY 2027, or is that a plenary benefit from changes made in the back end of FY 2026 and some of the benefits from FY 2027, and then you'll get ongoing benefits in FY 2028?

Speaker #2: And then you'll get ongoing benefits in FY28.

Speaker #3: Yeah. Tim, it's a combination of the annualization of FY26 programs of work, new programs of work in FY27, and the 15 million is the net reduction in the cost base.

Kate Koch: Yeah, Tim, it's a combination of the annualization of FY26 programs of work, new programs of work in FY27, and the AUD 15 million is the net reduction in the cost base. That more than covers the inflation we're seeing, like everyone is at the moment around the world. It's comparable to the AUD 25 million target from FY26, but it's just a net reduction in our overhead cost base.

Kate Koch: Yeah, Tim, it's a combination of the annualization of FY 2026 programs of work, new programs of work in FY 2027, and the AUD 15 million is the net reduction in the cost base. That more than covers the inflation we're seeing, like everyone is at the moment around the world. It's comparable to the AUD 25 million target from FY 2026, but it's just a net reduction in our overhead cost base.

Speaker #3: So that more than covers the inflation we're seeing like everyone is at the moment around the world. So it's comparable to the 25 million target from FY26, but it's just a net reduction in our overhead cost base.

Speaker #2: Got it. And sorry, when you're saying that it's comparable to the so you're saying that the FY20 what's the gross value of cost being extracted out of the business in FY27?

Tim Plumbe: Got it. When you are saying that it is comparable to the 20, are you saying that the FY20, what is the gross value of cost being extracted out of the business in FY27 from the new initiatives?

Tim Plumbe: Got it. When you are saying that it is comparable to the 20, are you saying that the FY20, what is the gross value of cost being extracted out of the business in FY 2027 from the new initiatives?

Speaker #2: From the new initiatives?

Speaker #3: No. No, we haven't said that. We're just saying there's a lot of moving pieces, and that is the net outcome of all the different things we're doing.

Kate Koch: No, we have not said that. We are just saying there is a lot of moving pieces, and that is the net outcome of all the different things we are doing. We are happy to take it offline and go through some of the programs and things like that in more detail, if that is helpful.

Speaker #3: We're happy to take it offline and go through some of the programs and things like that in more detail if that's helpful.

Speaker #2: Okay. That's helpful. Thanks, guys. Appreciate it.

Tim Plumbe: Okay, that is helpful. Thanks, guys. Appreciate it.

Speaker #1: Well, thanks, everyone, for all your questions. We've come to the end of Q&A. And we're looking forward to meeting with many over the coming days.

Operator: Well, thanks everyone for all your questions. We have come to the end of Q&A, and we are looking forward to meeting with many over the coming days. I will now hand back to Tennealle O'Shannessy to wrap up the call.

Speaker #1: I'll now hand back to Tenneille to wrap up the call.

Speaker #4: Thanks, everyone, for joining us today. Look, what I would say about FY26 look, FY26 for us has really reinforced our confidence in both our strategy and also our execution capability.

Tennealle O'Shannessy: Thanks everyone for joining us today. Look, what I would say about FY26. FY26 for us has really reinforced our confidence in both our strategy and also our execution capability. We delivered strong transformation outcomes, we strengthened the balance sheet, and we continued investing in the future of the business. So really underpinned our confidence in execution capability to deliver that set of results in the market conditions we have navigated. What I would also say is our focus for FY27 is clear. We will manage financial performance in the current volume environment. We will maintain quality and trust. We will deliver further cost and operating efficiencies, and importantly, as we spent time talking about at the end of the presentation, we will accelerate the use of technology and AI to capture quality share, improve conversion, and lower our cost to serve.

Tennealle O'Shannessy: Thanks everyone for joining us today. Look, what I would say about FY 2026. FY 2026 for us has really reinforced our confidence in both our strategy and also our execution capability. We delivered strong transformation outcomes, we strengthened the balance sheet, and we continued investing in the future of the business. So really underpinned our confidence in execution capability to deliver that set of results in the market conditions we have navigated. What I would also say is our focus for FY 2027 is clear. We will manage financial performance in the current volume environment. We will maintain quality and trust. We will deliver further cost and operating efficiencies, and importantly, as we spent time talking about at the end of the presentation, we will accelerate the use of technology and AI to capture quality share, improve conversion, and lower our cost to serve.

Speaker #4: We delivered strong transformation outcomes. We strengthened the balance sheet, and we continued investing in the future of the business. So really underpinned our confidence in execution capability to deliver that set of results in the market conditions we've navigated.

Speaker #4: What I'd also say is our focus for FY27 is clear. We will manage financial performance in the current volume environment. We will maintain quality and trust.

Speaker #4: We will deliver further cost and operating efficiencies. And importantly, as we spent time talking about at the end of the presentation, we will accelerate the use of technology and AI to capture quality share, improve conversion, and lower our cost to serve.

Tennealle O'Shannessy: We look forward to speaking with many of you over the coming days, and thank you all for joining the call this morning.

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