Q4 2026 Amotiv Ltd Earnings Call

Speaker #1: Thank you for standing by, and welcome to the Amotiv Limited FY26 results call. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the Amotiv Limited FY26 results call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via the webcast, please enter it into the Ask a Question box and click submit. I would now like to hand the conference over to Mr. Graeme Whickman, Managing Director and CEO. Please go ahead.

Speaker #1: If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad.

Speaker #1: And if you wish to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Mr. Graeme Whickman, Managing Director and CEO.

Speaker #1: Please go ahead.

Speaker #2: Well, thank you. Welcome to Amotiv's results call for the full year ended 30 June 2026. I'm Graeme, as you know—the Managing Director and CEO—and I'm here with Aaron Canning.

Graeme Whickman: Well, thank you. Welcome to Amotiv's result call for the full year ended 30 June 2026. I am Graeme, as you know, the Managing Director, CEO, and I am here with Aaron Canning, the Chief Financial Officer. Again, not a stranger to the people assembled on the call. Talking of the call, it will be recorded and that will be up on the website along with the presentation material a little later on today. You would have seen the second announcement released this morning regarding CEO succession. I will come back to that at the end of my remarks before we go to questions. Today is actually about the FY26 result. Let us start there. I am pretty pleased with that. If you look at the first slide, you will see that we are going to go through some key messages, the group performance, and then step through the 3 divisions.

Speaker #2: I'm the Chief Financial Officer—again, not a stranger to the people assembled on the call. I'm talking at the call. It'll be recorded, and that'll be up on the website along with the presentation material a little later on today.

Speaker #2: Now, you would have seen a second announcement released this morning regarding CEO succession. I'll come back to that at the end of my remarks, before we go to questions.

Speaker #2: But today is actually about the FY26 result, so let's start there. I'm pretty pleased with that. If you look at the first slide, you'll see that we're going to go through some key messages, the group performance, and then step through the three divisions.

Graeme Whickman: I will cover off 2 group-wide items, sort of around how we are recycling capital into higher returning opportunities. Secondly, the progress on Amotiv Unified. Aaron will take you through the financials in more detail. Then I will close with an FY27 outlook before we open the line for questions. Let us get straight into it. Slide 2. From left to right, firstly, Aaron and I and the rest of the team said that we would deliver approximately AUD 195 million of underlying in FY26. We said that 12 months ago, and I think we reiterated that probably 3 or 4 times through the course of the year, and then we have gone on and actually delivered AUD 195.1 million. We apologize for being AUD 100,000 out, but I am sure you will forgive us. We did that, of course, in an environment that became harder as the year progressed.

Speaker #2: I'll cover off two group-wide items: firstly, how we're recycling capital into higher-returning opportunities; and secondly, the progress on Unified. Aaron will take you through the financials in more detail.

Speaker #2: And then I'll close with an FY27 outlook before we open the line for questions. So let's get straight into it. Slide 2, from left to right—firstly, Aaron and I, and the rest of the team, said that we would deliver approximately $195 million of underlying in FY26.

Speaker #2: We said that 12 months ago, and I think we reiterated that probably three or four times throughout the course of the year. And then we've gone on and actually delivered $195.1 million.

Speaker #2: We apologize for being $100,000 out. But I'm sure you'll forgive us. We did that, of course, in an environment that became harder as the year progressed.

Speaker #2: So I'm really pleased that we actually beat that guidance by $100,000. The result, I think, was a reflection of some disciplined execution and the benefits of a multi-year diversification strategy we've spoken about in the past.

Graeme Whickman: I am really pleased that we actually beat that guidance by the AUD 100,000. The result, I think was a reflection of some disciplined execution and the benefits of a multi-year diversification strategy we have spoken about in the past. Amotiv Unified delivered the benefits we committed to. Exiting FY26, the programs generated about AUD 15 million in net benefits, and I am going to unpack that a little later on. It sort of mitigated some of the segment level macro pressures, through what I would say is a more streamlined and efficient operating model. This program is now evolved from a pure efficiency program into one that is funding a defined set of growth engines. We are always talking about efficiency and effectiveness. Thirdly, the cash generation was resilient. It was actually superb when you think about it.

Speaker #2: Unified delivered the benefits we committed to, exiting FY26 the program's generated about $15 million in net benefits, and they're going to unpack that later on.

Speaker #2: It sort of mitigated some of the segment-level macro pressures through what I would say is a more streamlined and efficient operating model. And this program has now evolved from a pure efficiency program into one that is funding a defined set of growth engines.

Speaker #2: So we're always talking about efficiency and effectiveness. Thirdly, the cash generation was resilient—it was actually superb when you think about a conversion rate of nearly 93%, and that funded the higher return of capital to shareholders, and ultimately also a lower leverage position at the same time.

Graeme Whickman: Conversion nearly 93% and that funded the higher return of capital to shareholders and ultimately also a lower leverage position at the same time. A big tick there. Then finally, racing to the right-hand side of the slide, we expect, Aaron and I, that is, to see modest revenue, underlying EBITA growth in FY27. This, in essence, is supported with growing offshore revenue, pricing, Amotiv Unified benefits, offsetting some subdued ANZ conditions. Let's turn to the group performance at the macro level from a company perspective. Revenue diversification has been a core pillar of our strategy, so it is pleasing to see the revenue of just over AUD 1 billion up 2.7%, and that was against subdued ANZ conditions, when you think it through. That growth was predominantly volume and filtration and also Four Wheel Drive new business wins, and that is reflecting the investment we have been making.

Speaker #2: So, a big tick there. And then finally, racing to the right-hand side of the slide, we expect, Aaron and I that is, to see modest revenue and underlying EBITDA growth in FY27.

Speaker #2: And this, in essence, is supported by growing offshore revenue, pricing, and a mode of unified benefits, offsetting some subdued ANZ conditions. So let's turn to the group performance at the macro level from a company perspective.

Speaker #2: So, revenue diversification has been a core pillar of our strategy, so it's pleasing to see the revenue of just over $1 billion, up 2.7%.

Speaker #2: And that was against subdued ANZ conditions. When you think it through, that growth was predominantly volume and filtration, and also forward-drive new business wins.

Speaker #2: And that's reflecting the investment we've been making, plus a growing contribution from offshore markets, complemented by some pricing. Gross margin of 42.8% was 1 percentage point below prior year.

Graeme Whickman: Plus a growing contribution from offshore markets, complemented by some pricing. A gross margin of 42.8% was 1 percentage point below prior year. Although, we will likely get some questions. The exit rate was actually higher than that, and we can unpack that a little later on. Quite an encouraging exit rate. The pricing actions in Four Wheel Drive and PTU improved those second half margins, but costs ran ahead of the price for the first part of the year. As I have already mentioned, the underlying EBITA increased about 1.6% to AUD 195.1 million, in line with our guidance. Just above our guidance, actually. The segment bridge on the slide gives you a sense. The primary drivers were LP&E's offshore contribution, powertrains' ongoing growth and they grew ahead of system, which was fantastic.

Speaker #2: Although we'll likely get some questions, the exit rate was actually higher than that, and we can unpack that a little later on. Quite an encouraging exit rate.

Speaker #2: The pricing actions and Forward Drive and PTU improved those second-half margins, but costs ran ahead of price for the first part of the year.

Speaker #2: As I've already mentioned, the underlying EBITDA increased about 1.6% to $195.1 million, in line with our guidance—just above our guidance, actually. The segment bridge on the slide gives you a sense of the primary drivers: LP&E's offshore contribution, powertrain’s ongoing growth—and they grew ahead of the system, which was fantastic.

Speaker #2: Emotive unified benefits, but it was partially offset by forward drive with a bit of a timing gap on the pricing, which we'll talk about a little later on.

Graeme Whickman: Amotiv Unified benefits, but it was partially offset by Four Wheel Drive with a bit of a timing gap on the pricing, which we will talk about a little later on. Underlying EPSA growth was 4.5%. It was ahead of EBITA growth, so reflecting the completion of the buyback. Cash conversion, I have mentioned, 93.1% improved 2.5 percentage points off what was already a strong base. This characteristic, and it is a strong characteristic of the business, allowed us to complete the back end of the buyback, lift both the interim and final dividends and basically return close to AUD 75 million in cash to shareholders, at the same time still reducing that leverage, which is on the slide there. ROCE improved 30 basis points to 13.4%. Although, Aaron and I recognize we are not where we want to be with ROCE, but we still have improved.

Speaker #2: Underlying EPSA growth was 4.5%. It was ahead of EBITDA growth, reflecting the completion of the buyback. Cash conversion, as I've mentioned, was 93.1%, improved by 2.5 percentage points.

Speaker #2: Of what was already a strong base. And this characteristic—and it's a strong characteristic—of the business allowed us to complete the back end of the buyback, lift both the interim and final dividend, and basically return close to $75 million in cash to shareholders, while at the same time still reducing that leverage which was on the slide there.

Speaker #2: Rochi improved 30 basis points to 13.4%. Although Aaron and I recognize we're not where we want to be with Rochi, we have still improved.

Speaker #2: 15% remains a target, and that's the measure we hold ourselves to. We will see the capital allocation framework a little later on.

Graeme Whickman: 15% remains the target, and that is the measure we hold ourselves to, and we will see that the capital allocation framework a little later on. But still, again, some improvement and more to come from our point of view. If you think about what has happened on the next slide in terms of a reminder, strategic footprint, three things on this slide are worth pausing on. The first is the balance. So the three divisions, similar scale, 36%, 31%, 33% revenue. The 73% of revenue, ICE-agnostic, kind of important. So it means that we are not reliant on any single division or category, and we are largely insulated from the pace of any powertrain transition as well. The second on the slide is the offshore contribution, now at 18% of revenue, up from effectively nothing five years ago. You have known as you follow us that this has been built deliberately.

Speaker #2: But still, again, some improvement and more to come from our point of view. If you think about what happened on the next slide, in terms of a reminder—strategic footprint—three things on this slide are worth pausing on.

Speaker #2: The first is the balance. So the three divisions—similar scale—$36, $31, $33 million in revenue. About 73% of revenue is agnostic, which is kind of important.

Speaker #2: So it means that we're not reliant on any single division or category, and we're largely insulated from the pace of any powertrain transition as well.

Speaker #2: The second on the slide is the offshore contribution, now at 18% of revenue, up from effectively nothing five years ago. And you've known, as you follow us, that this has been built deliberately.

Speaker #2: It's been a significant part of the buffer against continued subdued ANZ conditions and, frankly, our aspirations on that offshore revenue, I think, are pretty material as we go forward.

Graeme Whickman: It has been a significant part of the buffer against continued subdued ANZ conditions. Frankly, our aspirations on that offshore revenue are pretty material as we go forward, and I feel very confident we can actually deliver continued growth there. The third is the manufacturing footprint on the slide, and it is strategically located. It is multi-regional, purposely, and it is a genuine competitive advantage. It underpins that cost position of the core ANZ business. It is the platform for both the European OE and the USA program wins, which we will talk a bit more about later on. It is all supplied from Thailand. As I have said before, we want to sweat that manufacturing asset. A bit guttural, the statement, but sweating that asset is important in terms of the ROCE expectations we have out of the Four Wheel Drive division. Turning to slide 5.

Speaker #2: And I feel very confident we can actually deliver continued growth there. The third is the manufacturing footprint on the slide, and it's strategically located.

Speaker #2: It's multi-regional, purposely, and it is a genuine competitive advantage. It sort of underpins that cost position of the core ANZ business, and it's the platform for both the European OE and the USA program wins, which we'll talk a bit more about later on.

Speaker #2: It's all supply from Thailand. As I've said before, we want to sweat those manufacturing assets. Guttural is the statement, but sweating that asset is important in terms of the Roche expectations we have out of the Forward Drive division.

Speaker #2: So, turning to slide 5 and giving a bit of a flavor— we had this slide at the half, where we said what's happened in the first half.

Graeme Whickman: Giving a bit of a flavor, we had the slide at the half where we said what has happened in the H1. This slide is about what has happened since the H1 and the H2. In powertrains and undercar, we are excited to lift our shareholding and our Vietnamese filtration manufacturing partner. We are going to talk about that a little later on, from 20% to 40%. It has happened since we last spoke at the H1. That deepens the vertical integration behind RYCO and Westfalia, increases our US exposure in a positive way. That is on slide 11. We will get there in a second or two. We have also continued to expand in the ANZ independent channel. We have increased our ranging. That has delivered strong growth, and we have seen some excellent growth in New Zealand on the basis of that also. In LP&E, the US and European growth continued.

Speaker #2: This slide is about what's happened since the first half and the second half. And powertrain and undercar—we're excited to lift our shareholding in our Vietnamese filtration manufacturing partner.

Speaker #2: We're going to talk about that a little later on, from 20 to 40. And it's happened since we last spoke in the first half.

Speaker #2: That deepens the vertical integration behind RICO and Westfall, and increases our U.S. exposure in a positive way. That's on slide 11. We'll get there in a second or two.

Speaker #2: We've also continued to expand in the ANZ independent channel. We've increased our ranging, which has delivered strong growth, and we've seen some excellent growth in New Zealand on the basis of that as well.

Speaker #2: In LP&E, the US and European growth continued, and of course, that offset a bit of a muted ANZ market. We've continued to invest in the offshore resourcing and capability.

Graeme Whickman: That offset a bit of a muted ANZ market. We have continued to invest in the offshore resourcing and capability, and we are going to chat again about that later. We have also divested Twisted Throttle, and that is about simplifying our US operations. In Four Wheel Drive, since the half, because we had some great news in the H1, we have also secured more OEM wins in Europe, all out of Thailand, to one additional Kia model on top of the EV6, the two Hyundai models, and the Suzuki models that we spoke about. They all start supply from late calendar year 2027. We have got the towing component supply for the BYD Shark. That has commenced in the H2. Then we have started the consolidation of the Cruisemaster manufacturing.

Speaker #2: And we're going to chat again about that later. And we've also divested Twistless Throttle—that's about simplifying our US operations. In Forward Drive, since the half, because we had some great news in the first half, we've also secured more OEM wins in Europe, all out of Thailand.

Speaker #2: It's one additional care model on top of the EV6, the two Hyundai models, and the Suzuki models that we spoke about. And they all start supply from late calendar year ’27.

Speaker #2: We've got the towing component supply for the BYD Shark—that's commenced in the second half. And then we've started the consolidation of the Cruisemaster manufacturing.

Speaker #2: So we're bringing that Brisbane site to a close and bringing that down to Keysborough, making sure that we sort of maximize the concrete we have in Keysborough, or in other situations, where offshore into Thailand.

Graeme Whickman: We are bringing that Brisbane site, closing it, and bringing that down to Keysborough, making sure that we maximize the concrete we have in Keysborough or in other situations, we offshore it to Thailand. Again, all very deliberate, and that will happen in the H1 of FY27. If you think bottom right, from an Amotiv Unified point of view, we would make good progress on a tech stack. The ERP consolidation commenced in the background. In this half just gone, we transitioned to a single ANZ payroll system. We are piloting our new Amotiv-wide warehouse management system. That is Softeon. That is being trialed in New Zealand this half as it gets rolled out. The momentum around the consolidation of systems and tech stacks and even data has continued with good pace.

Speaker #2: So again, all very deliberate. And that will happen in the first half of FY27. And then, if you think bottom right from a unified point of view, we've made good progress on a tech stack.

Speaker #2: It's the ERP consolidation committees in the background. In this half just gone, we've transitioned to a single ANZ payroll system. We're piloting our new Amotiv-wide warehouse management system.

Speaker #2: That's Softin. That's being trialed in New Zealand this half as it gets rolled out. So the momentum around the consolidation of systems and tech stacks, and even data, has continued with good pace.

Speaker #2: So, let's now turn and get more into the strategic business units—the businesses, as we've once called them. Starting with Forward Drive: revenue grew just under 4%, up to just shy of $370 million.

Graeme Whickman: Well, revenue grew just under 4%, up to just shy of AUD 370 million, all on the back of new business wins. I mentioned those just a few minutes ago. It also included a full period of South Africa and a bit of H2 pricing, which came and offset a little bit of an ANZ volume situation. Underlying EBITDA was just short of AUD 53 million, so AUD 52.8 million. That was down 10.9%, with margin down 2.4 percentage points at 14.3%. I will unpack what sits behind that and what has changed. I am sure we will get questions around what was the exit rate in the H2 versus the full year, and that is encouraging news when we get to that. The market went backwards, though.

Speaker #2: All on the back of new business wins. I mentioned those just a few minutes ago. It also included a full period of South Africa, and a bit of second half pricing which came and offset it, and a little bit of an ANZ volume situation.

Speaker #2: Underlying EBIT was $52.8 million, just short of $53 million. That was down $10.9 million, with margin down 2.4 percentage points at 14.3%. I'll unpack what sits behind that and what’s changed.

Speaker #2: And I'm sure we'll get questions around what was the exit rate in the second half versus the full year. And that's encouraging news when we get to that.

Speaker #2: The market went backwards, though. If you think about the market that the Forward Drive team service—or serve, I should say—that was down.

Graeme Whickman: If you think about the market that the Four Wheel Drive team service or serve, I should say, that it was down. ANZ pickup volumes were down about 3%, excluding the BYD Shark, with the likes of Ranger down 5%, Hilux down 7%. We have got to take that for what it is. Importantly, the pickup fitment rates remain stable. When you unpick even those numbers, the annual numbers do not tell the full story. Pickup sales were actually up in that H1 and then really plummeted in the H2, 8%, actually. Within that H2, the Q3 was 2%, but the Q4 was down 13%. We saw, obviously, a lot of noise through what is going on at a macro level in terms of Middle East and the like.

Speaker #2: ANZ pickup volumes were down about 3%, excluding the BYD Shark. With the likes of Ranger down 5%, Hilux down 7%. So we've got to take that for what it is.

Speaker #2: Importantly, the pickup equipment rates remain stable. But then, when you sort of unpick even those numbers, the annual numbers don't tell the full story.

Speaker #2: Pickup sales were actually up in that first half, and then really plummeted in the second half—down 8%, actually. And then within that second half, the third quarter was down 2%, but the fourth quarter was down 13%.

Speaker #2: And we saw, obviously, a lot of noise through what's going on at a macro level in terms of the Middle East and the like. That fourth quarter exit rate is probably the sharpest move we've seen all year.

Graeme Whickman: That Q4 exit rate is probably the sharpest move we have seen all year, and that is why we are planning FY27 on the basis that the new vehicle sales will stay soft, and we will get to that when we talk about the outlook. The second factor was pricing timing. We took out of cycle OEM pricing, but that only benefited the H2, and you can see the effect in the numbers. The H2 underlying EBIT margin was actually 14.9%, so close to 110 basis points higher than the H1. That was also helped by the non-recurrence of a H1 Zone RV provision. Three things change the margin trajectory from here, and all three are within our control. The FY26 out-of-cycle pricing annualizes into this year. We have further aftermarket and out-of-cycle OEM pricings planned for the H1 of FY27.

Speaker #2: And that's why we're planning FY27 on that basis.

Speaker #1: But new vehicle sales will stay soft, and we'll get to that when we talk about the outlook. The second factor was pricing timing.

Speaker #1: So we took out a cycle of OEM pricing, but that only benefited the second half. And you can see the effect in the numbers.

Speaker #1: The second half underlying EBIT margin was actually 14.9%, so close to 110 basis points higher than the first half. And that was also helped by the non-recurrence of a first half zone RV provision.

Speaker #1: Three things changed . The margin trajectory from here . And all three are within our control . So you know , the FY 26 out of cycle pricing analyses into this year , we have further aftermarket and out OEM pricing planned for the first half of FY 27 .

Speaker #1: And then the offshore programs begin to contribute. So, the Nissan Navara also moves to the first quarter, FY27 supply. We have South Africa orders in hand for both Mazda and Mahindra.

Graeme Whickman: The offshore programs begin to contribute. The Nissan Navara also moves to the Q1 FY27 supply. We have South Africa orders in hand for both Mazda and Mahindra. This is the next set of customers in South Africa, which is excellent. The European OEM wins supply from late calendar year 2027. Those are some of the things that are rolling through as we think about FY27. On the UK, the presence we have established supports those European OEM tow bar wins. We expect, and this is probably the first time we have come forward and started to talk about some of the volume context, but we expect FY28 volumes of perhaps between 30,000 to 60,000 units. Somewhere between a 7% and 14% uplift on the FY26 volume with more in the pipeline.

Speaker #1: So, this is the next set of customers in South Africa, which is excellent. And the European OEM wins supply from late calendar year '27.

Speaker #1: So those are some of the things that are rolling through as we think about FY 27 on the UK , the presence we've established supports those European OEM turbo wins , and we expect and this is probably the first time we've come forward and started to talk about some of the volume context .

Speaker #1: But we expect FY 28 volumes of perhaps between 30 to 60,000 units . So somewhere between a seven and 14% uplift on the FY 26 volume , with more in the pipeline .

Speaker #1: And in the US , we're not contextualizing contextualizing the volume there , but the momentum is building through the U-Haul volume and also secondarily , the cruise master penetration .

Graeme Whickman: In the US, we are not contextualizing the volume there, but the momentum is building through the U-Haul volume and also secondarily, the Cruisemaster penetration. With a factory that was pushing out somewhere between 400,000 to 430,000 units in rough terms, you can start to see the sort of percentage improvements in terms of volume throughput that are coming in the future state, which I think is testimony to the work that Jason and the team have been doing. Cruisemaster continued to gain share in what remains a really soft Australian caravan and RV market, but it certainly positions it well for when that market turns. You have some cyclicality that is rolling through, and this division is the most exposed to it, whether it be caravans, whether it be RVs, whether it be the pickups, whether it be the likes of the SUVs.

Speaker #1: So , you know , with a with a factory that was pushing out somewhere between 400 to 430,000 units in rough terms , you can start to see the sort of percentage improvements in terms of volume throughput that are coming in the future state , which I think is testimony to the work that Jason and the team have been doing .

Speaker #1: Cruise Master continues to gain share in what remains a really soft Australian caravan and RV market, but it certainly positions it well for when that market turns.

Speaker #1: And you know , you've got some cyclicality that's rolling through . And this division is the most exposed to it , whether it be caravans , whether it be RVs , whether it be the pickups , whether it be the likes of the the SUVs , and then finally , I want to spend a moment on the chart on the bottom right .

Graeme Whickman: Finally, I want to spend a moment on the chart on the bottom right. That shows the Four Wheel Drive continues to win, which is pleasing for us, the team there, with the growing new Chinese OEMs. With that growth, with that wins, it just basically says that we are protecting our strong market position. That is important. The Chinese OEM sales in Australia, and the addressable market of pickups and the medium SUVs reached close to 96,000 units in the H2, more than triple the H1 of FY 2025. You can sort of see the comparison there. You can see just how much coverage that we have as a supplier to all those new customers. I want to talk about that in the next slide. BYD self-supplies tow bars for the Shark, and that model was around 10% of those units.

Speaker #1: And that shows the full drive continues to win, which is pleasing for us and the team there, with the growing sort of new Chinese OEMs.

Speaker #1: And with that growth and with that wins it just basically says that we're protecting , you know , our strong market position . And that's that's important .

Speaker #1: You know , the Chinese OEM sales and Australia and the addressable market of pickups and the medium SUVs reached close to 96,000 units in the second half , more than triple the first half of FY 25 .

Speaker #1: So you can sort of see the comparison there, and you can see just how much coverage we have as a supplier to all those new customers.

Speaker #1: And I want to talk about the next slide. BYD self-supplies towbars for the Shark, and that model was around 10% of those units.

Speaker #1: But importantly, we began supplying tow components to that same 3.5-body Shark performance variant in the second half. So we'll have some content on the Shark as well.

Graeme Whickman: But importantly, we will be able to supply tow bar components to that same 3.5 BYD Shark performance variant in the H2, so we will have some content on the Shark as well. The other 90%, as you can see there, 86,000 units sit in that half are brands where we are already the tow bar supplier. As you can see in the lighter blue band in the middle, the pickup component has been broadly flat, all at around 10,000 units in H1 and H2. Effectively, all the growth has come from SUVs when you think about the Chinese OEMs. That is an important distinction because the tow bar and accessory content is driven by vehicle class, not by brand or where the vehicle was built. So a higher payload pickup has much higher content, in terms of fitment rate than, say, an SUV.

Speaker #1: But the other 90% , as you can see there , 86% , 86,000 units in that half are brands where we're already the tow bar supplier .

Speaker #1: And as you can see in the lighter blue band in the middle, the pickup component has been broadly flat at around 10,000 units in H1 and H2.

Speaker #1: So effectively , all the growth has come from SUVs . When you think about the Chinese OEMs , and that's an important distinction because the tow bar and accessory content is driven by vehicle class , not by brand , or where the vehicle was built .

Speaker #1: So a higher payload pickup has much higher content in terms of footprint rate than, say, an SUV. So, what we're seeing there is a bit of a negative effect to some of those units that are coming in.

Graeme Whickman: So what we are seeing there is a bit of a negative mix effect as some of those units are coming in, and the higher content, newer Chinese pickups have only recently arrived or actually, frankly, are still arriving. Which kind of brings me to the next slide. We have had some questions as to how does this all come together. What you can see here is that Four Wheel Drive have continued to win with the new Chinese OEMs. On this slide, you can see the position we have built. I would encourage you to spend time on this when you have a moment or two, because on the left-hand side of the slide, you can see we have got supply relationships with every major Chinese OEM selling into this market. So BYD, GWM, Chery, MG, LDV, Geely, Jaecoo, even down to the smaller ones, Zeekr, JAC, the list goes on.

Speaker #1: And the higher content , newer Chinese pickups have only recently arrived or actually , frankly , are still arriving , which kind of brings me to the next slide .

Speaker #1: And , you know , we've had some questions as to how does this all come together and what you can see here is that , you know , four wheel drive have continued to win with the new Chinese OEMs .

Speaker #1: And on this slide , you can see the position we've built . And I'd encourage you to spend time on this when you have a moment or two , because on the left hand side of the slide , you can see we've got supply relationships with every major Chinese OEM selling into this market .

Speaker #1: So BYD Gwm , Chery M , m g , LDV , Geely , Jayco even down to the smaller ones , you know Zika , J.C.

Speaker #1: , the list goes on . Photon expand for them . And the other thing is not that we can disclose it , but we're also active , engaged with gaining the business with a further seven brands that wouldn't have even heard of that .

Graeme Whickman: Foton, XPeng, Forthing. The other thing is, not that we can disclose it, but we are also active, engaged with gaining the business with a further 7 brands that you would not even have heard of as they enter into Australia. Of course, from a commercial sensitivity point of view, we cannot actually speak to their names. All that tells you is that we are the preeminent go-to supplier, and we have gained the relationship with all those Chinese brands. Then on the right-hand side, you can see what I mean about content. We are showing here some of the meaningful pickups and some of the meaningful large SUVs. If you look at the pickups, the GWM Cannon, the Alpha, the T60, the JAC T9, the Hunter, all those carry tow bars, in addition to other functional accessories.

Speaker #1: Enter into Australia . And of course , you know , from a commercial sensitivity point of view , we can't actually speak to their names , but all that tells you is that we are the preeminent go to supplier and we have gained the relationship with all those Chinese brands .

Speaker #1: And then on the right-hand side, you can see what I mean about content. So we're sort of showing here some of the meaningful pickups and some of the meaningful large SUVs.

Speaker #1: And if you look at the pickups , the Gwm cannon , the alpha , the T60 , the Jack T9 , the Hunter , all those carry Towbars and addition to other functional accessories .

Speaker #1: And you can see tick , tick , tick , tick , tick that we are the supplier . So when you take the lens back and think of , you know , the 50 plus models we supply products to , it's actually a testimony to , to Jason and the rest of the team on the basis of the product development investment we've made and we've spoken about before .

Graeme Whickman: You can see tick, tick, tick, that we are the supplier. When you take the lens back and think of the 50-plus models we supply products to, it is actually a testimony to Jason and the rest of the team, on the basis of the product development investment we have made, and we have spoken about before. Again, it just reinforces what protects our market position. There are some slides later on in the appendix. When you have time, you can actually see that in an even more meaningful way. It is a reflection of all the relationships that are already in place across the full set. Quite a lot about Four Wheel Drive there, but I really wanted to reinforce how we are protecting our businesses. Let us move to lighting, power, and electrical. The revenue was broadly flat.

Speaker #1: And again, it just reinforces what protects our market position. And there are some slides later on in the appendix—when you have time, you can actually see that in an even more meaningful way.

Speaker #1: And it's a reflection of all the relationships that are already in place across the full set. So, quite a lot about four-wheel drive there, but I really wanted to reinforce how we're protecting our position.

Speaker #1: Let's move to lighting, power, and electrical. So the revenue was broadly flat. It was kind of slightly down, seven-tenths, with record growth in the US and Europe.

Graeme Whickman: It was kind of slightly down 0.7%, with record growth in US and in Europe. That mitigated the soft ANZ demand. By category, lighting, half of the divisional revenue was down about 1% with Vision X unit growth in the US and Europe, supported by new customer wins and improved supply lead times offsetting a muted ANZ situation in predominantly the reseller channels. Power management was up 3% on continued growth in the premium RV products, including Projecta's pretty recent market-leading 48-volt system. We are kind of number 1 there in the market. We are the first to market, which is fantastic. Electrical and accessories were down 3%, constrained by that ANZ reseller demand. The channel view, which is on the bottom right underneath, tells the story more sharply. ANZ resellers, now about 40% of the division, were down 7%.

Speaker #1: That mitigated the soft ANZ demand by category lighting half of the division revenue was was down about a point with a vision X unit growth in the US and Europe , supported by new customer wins and improved supply lead times , offsetting a muted ANZ situation and predominantly the reseller channels .

Speaker #1: Power management was up 3% on continued growth in the premium RV products , including projectors . Pretty recent market leading 48 volt system .

Speaker #1: We're kind of number one there in the market . We're the first to market , which is fantastic . You know , electrical and accessories were down 3% , constrained by that .

Speaker #1: ANZ reseller demand . The channel view , which is on the bottom right underneath , tells the story more sharply . So ANZ resellers now about 40% of the of the of the division were down 7% .

Speaker #1: ANZ caravan RV and truck . About 90% of the revenue . They were down 8% and then offshore , about 34% of our revenue was actually up 12% .

Graeme Whickman: ANZ caravan, RV, and truck, about 9% of revenue, they were down 8%. Then offshore, about 34% of our revenue was actually up 12%. The growth in offshore and cyclical ANZ factors are changing the shape of the division. Underlying EBITA was up 11%, just over 11%, to AUD 75 million and change, with margin expansion of 2.5 percentage points, approaching 24%, so about 23.8%. The largest driver was the Amotiv Unified benefits delivering a leaner operating model. Operating costs were actually 11% below last year. Improved Vision X pricing and product mix also supported the earnings. I would also note that the result includes a one-off legal benefit of about AUD 2 million, where the associated costs were recorded in the prior periods. Looking forward, the US and European growth is expected to provide further revenue diversification.

Speaker #1: So the growth in offshore and cyclical ANZ factors are changing the shape of the division. Underlying EBITDA was up just over 11%, to 75.

Speaker #1: And change—$75 million and change—with margin expansion of two and a half percentage points, approaching 24%. So, about 23.8% are the largest driver.

Speaker #1: Was the unified benefits , delivering a leaner operating model . Operating costs are actually 11% below last year . Improved vision X pricing and product mix also supported the earnings .

Speaker #1: I'd also note that the result includes a one-off legal benefit of about $2 million, where the associated costs were recorded in prior periods.

Speaker #1: Looking forward , the the US and European growth is expected to provide further revenue diversification . You know , vision ex has been announced as the official lighting partner of Cfmoto USA .

Graeme Whickman: Vision X has been announced as the official lighting partner of CFMOTO USA. That is really exciting. Very pleased about that. Well done to the team there. The new to market Projecta 48V system I just mentioned, that is expected to support OEM and OES growth. The annualized benefits of the US tariff-related pricing continue through the H1 of FY27. The Amotiv Unified benefits continue, and that is moderated by the end of the half as the savings annualize. We do expect the ANZ reseller conditions to remain subdued, certainly in the near term. We go to the third of our SBUs, Powertrain and Undercar. What a great result. Another excellent result where revenue growth was once again outpacing system growth. Well done to the teams there. The system growth is one half to two. We are actually outpacing that almost double. In fact, more than double.

Speaker #1: That's really exciting . Very pleased about that . Well done to the team there . The new to market projector 48 volt system .

Speaker #1: I just mentioned, that's expected to support OEM and OES growth. And then the annualized benefits of the U.S. later pricing continue through the first half of FY27.

Speaker #1: The unified benefits continue , and that's moderated by the by the end of the half as the savings annualized . And we do expect the ANZ reseller conditions to remain subdued .

Speaker #1: Certainly in the near term . And then we go to the the third of our Sbus powertrain and Undercar . What a what a great result .

Speaker #1: You know , another excellent result where , revenue growth was once again outpacing system growth . Well done to the teams . There .

Speaker #1: You know , the system growth is one and a half to two . We're actually outpacing that almost double . And in fact more than double revenue increased 4.7% just shy of 340 million .

Graeme Whickman: Revenue increased 4.7%, just shy of AUD 340 million. It reflected unit growth and strategic price increases that Aaron and I had shared, and we have executed that across the product categories. Our growth was led by filtration and brakes, with continued diversification through adjacencies. New Zealand revenue was up nearly 23%, against what was a soft PCP, but that was driven by enhanced distribution across filtration between a couple of our brands there. RYCO was named the GPC Asia Pacific Supplier of the Year across all of Asia Pacific. Well done there. I think that is a great testimony to the level of ranging and product development and customer service that that team consistently delivers. Underlying EBITDA was AUD 78.8 million. That was up 2.1, with margin improving half on half against a pretty strong FY25 comparative. Although the full year margin of 23.2% was marginally below prior year.

Speaker #1: It reflected unit growth and strategic price increases that Aaron and I had shared, and we had executed that across the product categories.

Speaker #1: A growth was led by filtration and breaks , you know , with continued diversification adjacencies . New Zealand revenue was up nearly 23% against what was a soft pcpi .

Speaker #1: But that was driven by enhanced distribution across filtration between a couple of our brands there. And Ryka was named the GPC Asia Pacific Supplier of the Year across all of Asia Pacific.

Speaker #1: So, well done there. And I think that's a great testimony to the level of ranging, product development, and customer service that that team consistently delivers.

Speaker #1: Underlying EBITDA was 78.8 . That was up 2.1 with margin improving half on half against a pretty strong FY 25 comparative . Although the full year margin of 23.2 was was marginally below prior year , gross margins improved through the second half , largely on mix .

Graeme Whickman: Gross margins improved through the H2, largely on mix. At the EBITDA line, that was offset by some incentives and some transitory logistics costs. The EV repair and remanufacturing business made meaningful progress. Accelerating growth, combined with moderating investment levels, drove a meaningful improvement in profitability. The business remains on track to break even, as we committed by FY27 on a run rate basis. Illustratively, we put on the slide there some of the growth, in terms of trajectory around where that business, Infinitev, that is gaining revenue, whether it be from a hybrid, a PHEV or an EV. It is off a small base, but you can see it is starting to take shape, and that is why we were quite pleased and thought it was representative to put into the deck. We continue to invest in the Australian backbone.

Speaker #1: The everyday line . That was offset by some incentives and some transitory logistics costs . The EV repair and remanufacturing business made meaningful progress , accelerating growth combined with moderating investment levels , drove a meaningful improvement in profitability in the business , remains on track to break even .

Speaker #1: As we committed by FY 27 on a run rate basis . And you know , Illustratively , we put on on the slide there , some of the growth in terms of trajectory around where that business infinitive that is is gaining revenue , whether it be from , you know , a hybrid , a Phev , or an EV .

Speaker #1: So it's off a small base, but you can see it's starting to take shape. And that's why we're quite pleased and thought it was representative to put into the deck.

Speaker #1: Now we continue to invest in the Australian backbone . So we , as part of that improvement in terms of the cost base , not so much now , the revenue on the bottom right of that slide , you know , the operations for infinitive and consolidated that was into a single site with IMG .

Graeme Whickman: As part of that improvement in terms of the cost base, not so much now the revenue on the bottom right of that slide, the operations of Infinitev been consolidated. That was into a single site with IM Group. The ERP was rationalized for our clutch business. The technology roadmap and the warehouse rationalization took place. We did see some modest price increases across PTU as we spoke, and they were implemented in the H2. We have more pricing to take effect in the Q1 of FY27. As you would expect and as we communicated, we will invest in the Australian warehouse footprint in FY27 as part of Amotiv Unified. That will also support the independent channel expansion. It is all coming nicely together in that regard. On slide 11, I touch on portfolio optimization.

Speaker #1: The ERP was rationalised for our clutch business . You know , the technology roadmap and the warehouse rationalisation took place . We did see some modest price increases across to as we as we spoke .

Speaker #1: And they were implemented in the second half . We've got more pricing to take effect in the first quarter of FY 27 . And as you would expect , and as we've communicated , we'll invest in the Australian warehouse footprint in FY 27 as part of unified .

Speaker #1: So that will also support the independent channel expansion. It's all coming together nicely in that regard. On slide 11, I sort of touch on portfolio optimization.

Speaker #1: The slide sets out three decisions that are taken together to recycle capital out of subscale positions in the group and into a higher returning one.

Graeme Whickman: The slide sets out three decisions that, taken together, recycle capital out of subscale positions in the group and into a higher returning one. The investments in filtration. As I mentioned earlier on, we have agreed to increase our shareholding in VAFI. That is a Vietnamese-based filtration manufacturer. It has both Chinese and Vietnamese. We already have ownership in the Chinese piece, and we are expanding that in our Vietnamese piece. It is a leading US supplier to the aftermarket in the US as much as it is part of a group that is supplying us. We are going from 20% today to 40% from the Q1, with exclusive optionality to increase that progressively from there. Ownership structure is related to existing RYCO and our Wesfil supply, as I mentioned. This is a business we know well. We have worked with for decades, and we are pleased with the outcome.

Speaker #1: The investments in filtration . So as I mentioned earlier on , we've agreed to increase our shareholding and baffi . So that's a Vietnamese based filtration manufacturer .

Speaker #1: It has both Chinese and Vietnamese. We already have ownership in the Chinese piece, and we're expanding that in our Vietnamese piece.

Speaker #1: And it's a leading US supplier to the aftermarket in the US, as much as it is part of a group that's supplying us.

Speaker #1: And so we're going from 20% today to 40% from the first quarter, with exclusive optionality to increase that progressively. Their ownership structure is related to the existing ratio.

Speaker #1: And Westfield suppliers I mentioned—so this is a business we know well. We've worked with them for decades, and so we're pleased with the outcome.

Speaker #1: Consideration is approximately 15 mil for approximately 20% , subject to all the customary working capital adjustments . You know , that business and vafi is expanding capacity in Viet right now .

Graeme Whickman: Consideration is approximately AUD 15 million for approximately 20%, subject to all the customary working capital adjustments. That business in VAFI is actually expanding capacity in Vietnam right now. Aaron and I were out there recently. It is a greenfield site. We expect continued double-digit revenue growth from that acquisition. The interest will be equity accounted. Signing is expected in mid-August, with completion at the end of August. That is a great outcome. Partly funding that is the two divestments at East Coast Bullbars. Essentially, as we look to our portfolio, it is subscale as it stands at the moment in terms of manufacturing. With the way the market is at the moment, we are looking at the limited growth potential. Proceeds just over AUD 11 million. Completion in early July has done.

Speaker #1: Aaron and I were out there recently . It's a greenfield site . We expect continued double digit revenue growth from that . That acquisition , the interest will be equity accounted sign is expected in mid-August with completion at the end of August .

Speaker #1: That's a great outcome that partly funding that is the two divestments , the East Coast Bullbars essentially , as we look to look to our portfolio , it's subscale as it stands at the moment in terms of manufacturing and with the way the market is , we're , you know , looking at the limited growth potential proceeds just over 11 mil completion in early July has done the cost of rationalize our original thinking cost to rationalize and take that business to keysborough was the original thought .

Graeme Whickman: Our original thinking, cost to rationalize and take that business to Keysborough was the original thought, but the forecast returns do not meet the internal hurdles we have, particularly given the other higher returning consolidation opportunities, which as an example, would be Cruisemaster. We touched on that earlier. Cruisemaster going down to Keysborough. The smaller contribution was Twisted Throttle. The net effect from these changes will be around a 20 basis point uplift to group ROE. Again, just part of the pathway to where we want to be. That is all about the capital allocation framework working as intended. Recycling capital, low growth, subscale assets, and into higher returning opportunities. Then I just want to touch on Amotiv Unified before I ask Aaron to just take us through some of the financials.

Speaker #1: But the forecast returns don't meet the internal hurdles . We have , particularly given the other higher returning consolidation opportunities , which , as an example , would be cruise master .

Speaker #1: And we've touched on that earlier. So, Cruise Master going down to Keysborough. And then, obviously, the smaller contribution was Twisted Throttle.

Speaker #1: So the net effect from these changes will be around a point uplift to group RoCE. Again, just part of the pathway to where we want to be.

Speaker #1: And that's all about the capital allocation framework . Working as intended . So recycling capital at a low growth subscale assets and into higher returning opportunities .

Speaker #1: So then I just want to touch on Unifi before I ask Aaron to just take us through some of the financials . So we announced a unified , very clear in terms of what we wanted in 2025 .

Graeme Whickman: We announced Amotiv Unified, very clear in terms of what we wanted in 2025, in February, three-wave, three-year program. Exiting FY25, we delivered AUD 15 million in gross benefits with AUD 5 million reinvested, so AUD 10 million net. Through FY26, we added another AUD 10 million gross with another AUD 5 million invested. That takes the cumulative gross, annualized, exiting FY26 to about AUD 25 million. AUD 10 million reinvested into brands, new product development capability, and then AUD 15 million net flowing through to the underlying EBIT. We said we would deliver these benefits, and we have. What has changed going forward is the character of the program. We have been prioritizing efficiency projects, which are on the left of the slide. Warehouse network, Amotiv Unified tech stack, data, common and direct sourcing, Cogitech, AI acceleration, et cetera. All of those are now increasingly funding the growth engine on the right, which clearly we are about top line growth.

Speaker #1: And February 3rd . Wave , three year program exiting FY 25 . We've delivered , you know , 15 million gross benefits with five reinvested .

Speaker #1: So, ten net through FY26. We added another $10 million gross with another $5 million invested. So that takes the cumulative gross annualized exiting FY26 to about $25 million.

Speaker #1: You know, $10 million into brand new product development capability, and then $15 million net flowing through to the underlying EBIT. So we said we'd deliver these benefits.

Speaker #1: And we have what's changed going forward is the character of the program . So , you know , we've been prioritizing efficiency , efficiency projects which are on the left of the slide warehouse network , unified tech stack data , you know , common and direct sourcing project , AI acceleration , etc.

Speaker #1: and all of those are now increasingly funding the growth engine on the right , which , you know , clearly we're about top line growth .

Speaker #1: So the omnichannel work , you know , recently we've just stood up , nava.com , projector.com , denali dot com is doing very well .

Graeme Whickman: The omni-channel work, recently we have just stood up narva.com, projecta.com. Denali.com is doing very well. Omni-channel capability. The international expansion, you can see the growth we already had, and we are actually doubling down on that quite materially at the moment. The ANZ independent channel expansion. They are all active. They are all work in progress with varying states of progressiveness. The OEM cross-sell is in preparation and the ANZ fitment fleet is a future phase. The shared service operating model is moving to its execution phase from Q1 FY27, and we would expect to see some net benefits from this program, and they are already included in the FY27 guidance. We are getting some good momentum on our Amotiv Unified program. Methodical, as we said, leader-led, and starting to realize the benefits, either from an efficiency or indeed an effectiveness. I will take a pause.

Speaker #1: So omnichannel capability , the international expansion . You can see the growth we've already had . And we're actually doubling down on that quite materially at the moment .

Speaker #1: And then the ANZ Independent channel expansion , there are all active . They're all work in progress with varying states of , you know , progressiveness .

Speaker #1: The OEM cross-sell is in preparation. And the ANZ fitment fleet is a future phase. So the shared service operating model is moving to its execution phase.

Speaker #1: And from the first quarter of FY 27 , and we'd expect to see some net benefits from this program . And they're already included in the FY 27 guidance .

Speaker #1: So , you know , we're getting some good momentum on our unified program , methodical , as we said , leader led and starting to realize the benefits either from an efficiency or indeed an effectiveness .

Speaker #1: So I'll take a pause. You've probably heard my voice too much, and perhaps I'll pass to Aaron and ask him to take you through some of the finer points of the financial results.

Graeme Whickman: You have probably heard my voice too much and perhaps pass to Aaron, and I will ask him to take you through some of the finer points of the financials. Aaron, please. Over to you.

Speaker #1: Aaron , please . Over to you . Well , thank you , Graham , and good morning , everyone . My name is Aaron Canning .

Aaron Canning: Well, thank you, Graeme, and good morning, everyone. My name is Aaron Canning. I have the pleasure of being the Amotiv Group CFO. I will take you through the FY26 financial results in more detail. Just onto the next slide. Reported revenue grew 2.7%, reflected all organic growth, and as Graeme touched on, was driven by Four Wheel Drive revenue wins from new business, including the full year period impact of South Africa. Plus, out of cycle OE pricing really starting to take effect through the majority of the H2. These were the key drivers behind that strategic business unit growing 3.8% in revenue. LP&E, the lighting panel electrical division, the revenue declined very marginally by 0.7%. It was a tale of continued growth in the US and Europe, which I would note both delivered record revenue, mitigating soft ANZ reseller demand.

Speaker #1: I have the pleasure of being the Emotive Group CFO. I'll take you through the FY26 financial results in more detail. Moving on to the next slide.

Speaker #1: Reported revenue grew 2.7% , reflected all organic growth . And as Graham touched on , was driven by four wheel drive revenue wins from new business , including the full year period impact of South Australia , South Africa .

Speaker #1: I apologies , plus our out of cycle OE pricing really starting to take effect through the majority of the second half . And these were the key drivers behind that strategic business unit , growing 3.8% in revenue .

Speaker #1: LP the lighting and electrical division , the revenue declined very marginally by 0.7% , and really it was a tale of continued growth in the US and Europe , which I would note both delivered record revenue mitigating soft ANZ reseller demand , powertrain and Undercar revenue continues to outpace the market through its resilient wear and repair brands , with top line revenue growth of 4.7% .

Aaron Canning: Powertrain and undercar revenue continues to outpace the market through its resilient wear and repair brands, with top-line revenue growth of 4.7%, leading to really a diverse aftermarket brand portfolio. As Graeme touched on earlier, we are very pleased with our accelerating growth in our EV repair and remanufacturing business in Infinitev. Growth at a category and brand level was very much led by filtration and brakes. With continued diversification into adjacency categories, particularly in the independent channel. Gross profit increased 0.4%, with margins improving through the H2, largely due to the OE pricing in Four Wheel Drive starting to take effect from earlier in the half. This was also further supported by the regular pricing cadence that we have in our LP&E division domestically in the H2, and importantly, a full six-month benefit of our 10% post-tariff price increase in Division X in the USA.

Speaker #1: Now, leading through, really a diverse aftermarket brand portfolio. And as Graeme touched on earlier, we're very pleased with our accelerating growth in our EV repair and remanufacturing business—an area of definitive growth. Growth at a category and brand level was very much led by filtration and brakes, with continued diversification into adjacency categories, particularly in the independent channel.

Speaker #1: Gross profit increased 0.4%, with margins improving through the second half, largely due to the OE pricing in four-wheel drive starting to take effect from earlier in the half.

Speaker #1: This was also further supported by the regular pricing cadence that we have in our LP e division domestically in the second half , and importantly , a full six month benefit of our 10% post tariff price increasing for vision ex in the USA .

Speaker #1: Pleasingly , on the operating costs line , they were lower by 0.9% more than offsetting inflationary increases . And this is largely a reflection from the benefit of the Amotiv Unified program flowing through in combination with the focus on discipline , cost management , operating costs also included higher incentives to the value of 4.5 million in the 26 year versus the PCP .

Aaron Canning: Pleasingly on the operating cost line, they were lower by 0.9%, more than offsetting inflationary increases. This is largely a reflection from the benefit of the Amotiv Unified program flowing through, in combination with a focus on disciplined cost management. Operating costs also included higher incentives to the value of AUD 4.5 million in the 2026 year versus the PCP. If I exclude those operating costs would have been 3% lower year on year on a like for like basis. Depreciation and amortization were marginally up by 1.6%, really reflecting our higher CapEx investment, which I will touch on in a moment. Underlying EBITA was AUD 195.1 million, in line with our guidance and marginally up by 1.6% versus PCP in what became an increasingly more challenging market, particularly through the latter half of the H2 of this year.

Speaker #1: And if I exclude those operating costs, it would have been 3% lower year on year on a like-for-like basis. Depreciation and amortization were marginally up by 1.6%.

Speaker #1: Really reflecting our higher CapEx investment , which I'll touch on in a moment . Underlying EBITDA was 1.9 , 5.1 , in line with our guidance and marginally up by 1.6% versus PCP in what became an increasingly more challenging market , particularly through the latter half of the second half of this year .

Speaker #1: Significant items—they totaled $35 million, of which $15.8 million is a non-cash impairment on the divestment of the East Coast, or ECB Bullbars business, which Graeme spoke to earlier.

Aaron Canning: Significant items, they totaled AUD 35 million, of which AUD 15.8 million is a non-cash impairment on the divestment of the East Coast or ECB bull bars business, which Graeme Whickman spoke to earlier. Excluding this, total cash significant items were just under AUD 20 million, AUD 19.9 million. Those cash costs marginally higher in the H2 versus the H1, particularly related to Amotiv Unified program costs. The prior year, of course, included a AUD 190 million non-cash impairment related to APG. A more detailed breakdown of all significant items is provided in the appendix on slide 26 of this presentation. On our taxation line, the expense grew by 12.6%, largely attributable to earnings growth, with a slightly higher effective tax rate of 27.7% versus 25.9% in the PCP. I would note as well, a further breakdown of our effective tax rate calculations is provided in the appendix on slide 27.

Speaker #1: Excluding this total cash, significant items were just under $20,019.9. Those cash costs were marginally higher in the second half versus the first half, particularly related to Amotiv Unified program costs.

Speaker #1: The prior year, of course, included a $190 million non-cash impairment related to APG. A more detailed breakdown of all significant items is provided in the appendix on slide 26 of this presentation.

Speaker #1: On our taxation line, the expense grew by 12.6%, largely attributable to earnings growth, with a slightly higher effective tax rate of 27.7% versus 25.9% in the PCP.

Speaker #1: And I would note as well, a further breakdown of our effective tax rate calculations is provided in the appendix on slide 27.

Speaker #1: Our statutory net profit after tax at $75.1 million reflected a meaningful turnaround versus the prior year, which was impacted by the APG impairment.

Aaron Canning: Our statutory net profit after tax at AUD 75.1 million reflected a meaningful turnaround versus the prior year, which was impacted by the APG impairment, as I said earlier. Pleasingly, when it comes to shareholder returns, the business has continued to deliver growth across all metrics as presented. Underlying EPSA grew 4.5%, largely due to a combination of earnings growth and lower shares on issue on completion of the buyback at the end of the Q1 of this year. The board approved on a dividend basis an increase to the final dividend of AUD 0.01 per share, bringing this to AUD 0.23 per share. For the full year, a 6.2% increase in dividends versus last year, and a payout ratio slightly higher as well of 55%.

Speaker #1: As I said earlier, pleasingly, when it comes to shareholder returns, the business has continued to deliver growth across all metrics as presented.

Speaker #1: Underlying Epsa grew 4.5% , largely due to a combination of earnings growth and lower shares on issue . On completion of the buyback at the end of the first quarter of this year , the board approved on a dividend basis an increase to the final dividend of $0.01 per share , bringing this to $0.23 per share , and for the full year , 6.2% increase in dividends versus last year at a payout ratio slightly higher as well of 55% .

Speaker #1: And pleasingly, we have been able to return $74.8 million cash to our shareholders in the year to date, through a combination of buybacks and dividends paid in the year.

Aaron Canning: Pleasingly, we have been able to return AUD 74.8 million cash to our shareholders in the 2026 year through a combination of our buyback and dividends paid in the year. We have been able to do that as well as reducing our debt. As we turn our attention to the following page, when it comes to our balance sheet, the balance sheet is in great shape. Net working capital was well managed. Importantly, we continue to see further opportunities to drive efficiencies, particularly in inventory, without impacting growth, and particularly within our Lighting, Power, and Electrical division as we look to improve our inventory management. Net working capital percentage of revenue of 28.5% remains ahead of most comparable external benchmarks that we compare ourselves to. We remain broadly consistent with our prior periods. That being said, however, we do believe there is further opportunity to improve.

Speaker #1: And we've been able to do that, as well as reducing our debt, as we turn our attention to the following page. When it comes to our balance sheet—look, the balance sheet is in great shape.

Speaker #1: Net working capital was was well managed . Importantly , we continue to see further opportunities to drive efficiencies , particularly in inventory , without impacting growth and particularly within our lighting electrical As we look to improve our inventory management , net working capital , percentage of revenue at 28.5 remains ahead of most comparable external benchmarks that we compare ourselves to , and we remain broadly consistent with our prior periods .

Speaker #1: That being said, however, we do believe there is further opportunity to improve. I'll now unpack working capital in just a little more detail at an inventory level.

Aaron Canning: On our unpack working capital, just a little more detail. At an inventory level, inventory increased just over AUD 12 million, AUD 12.4 million since June 2025. It moderated lower through the H2 as the benefits from our concerted efforts in this space became more evident. As mentioned earlier, we do see further improvements when it comes to improving inventory turns and returns. In the Lighting, Power, and Electrical division, we have carried higher levels of inventory for our Vision X business in the US post those US tariff changes. We have done this consciously. We want to make sure we have got the right inventory in the right place in country to meet the growing demand in that geography. To balance this, we have sought to rebalance our holdings in Australia commensurate with a reseller demand that has been more muted.

Speaker #1: Inventory increased just over 12 million , 12.4 million since June of 2025 . It moderated lower through the second half as the benefits from our concerted efforts in this space became more evident As mentioned earlier , we do see further improvements when it comes to improving inventory turns and returns in the lighting and electrical division .

Speaker #1: We have carried higher levels of inventory for our Vision business in the US, post those US tariff changes, and we've done this consciously.

Speaker #1: We want to make sure we've got the right inventory in the right place in the country to meet the growing demand in that geography.

Speaker #1: To balance this, we've sought to rebalance our holdings in Australia, commensurate with a reseller demand that has been more muted. And this has been the driver behind that.

Aaron Canning: This has been the driver behind the inventory performance in that division, and we see that thematic continuing into 2027. At a Four Wheel Drive level, inventory levels across ANZ were predominantly impacted by customer ordering timing. It is important to note that this business is mostly a made-to-order business. Most of the finished goods are either sitting in transit to be made or in the progress of being made to meet customer orders. In the Powertrain and Unicar division, we continue our work on consolidating our logistics and warehousing footprint as part of Amotiv Unified, and that work has continued through the year. We have continued to perform strongly in filtration as well in the year, particularly against a backdrop of increased domestic competition.

Speaker #1: The inventory performance in that division . And we see that thematic continuing into 27 at four wheel drive level inventory levels across ANZ were predominantly impacted by customer ordering timing , but it's important to note that this business is mostly a made to order business .

Speaker #1: And so most of the finished goods are either sitting in transit to be made or in the process of being made to meet customer orders in the powertrain division , we continue our work on consolidating our logistics and warehousing , warehousing footprint is part the Amotiv Unified and that work is continued through the year , and we've continued to perform strongly in filtration as well in the year at some particularly against a backdrop of increased domestic competition .

Speaker #1: And we took the opportunity through the latter half of the year to actually increase inventory infiltration. And so we've actually ended the year higher on an inventory basis for that division.

Aaron Canning: We took the opportunity through the latter H2 of the year to actually increase inventory in filtration as we went into the year higher on an inventory basis for that division. That is to offset some challenges we had going into the beginning of 2026 in relation to DIFOT challenges. I can report now we have started the year strongly in relation to filtration. Payables look marginally ahead of prior periods, largely related to inventory purchasing timing. No significant change to terms or suppliers. Pleasingly on receivables, we have held that flat despite revenue growth of 2.7%. Collections have improved, particularly through the H2. The aging profile of the balances has also improved. There are no significant provisions for the year-end.

Speaker #1: But that's to offset some challenges we had going into the beginning of '26 in relation to depart challenges. And I can report now we have started the year strongly in relation to filtration payables.

Speaker #1: The ahead of prior periods , largely related to inventory purchasing time and timing . No significant change to terms or suppliers , and pleasingly on receivables .

Speaker #1: We've held that flat despite revenue growth of 2.7%. Collections have improved, particularly through the second half. The ageing profile of our balances has also improved.

Speaker #1: There's no significant provisions for the year end . There's no repeat of any additional exposure or risk identified in relation to the changing domestic caravan , RV market , which we saw in the first half with a provision we took for zone RV in four wheel drive .

Aaron Canning: There is no repeat of any additional exposure or risk identified in relation to the changing domestic caravan RV market, which we saw in the H1 with the provision we took for Zone RV in Four Wheel Drive. However, we have continued to watch that channel particularly closely as the caravan RV market undergoes quite a significant change from a domestic-focused industry to more of an import-focused industry. For transparency, we continue to reduce our levels of data factoring. I have said that before. Pleasingly, we have done that again in these results. Directing to the bottom right of the slide. Cash conversion, again, very, very strong, just over 93%. It is a hallmark of the resilience of this business, and it continues to deliver consistent market-leading cash outcomes. You can see the strength of the business really through a number of periods and a number of cycles there.

Speaker #1: However , we continued to watch that channel , particularly closely , closely as the caravan RV market undergoes quite a significant change from a domestic focus industry to more of an in import focused industry for transparency , we continue to reduce our levels of debt factoring .

Speaker #1: I've said that before, and pleasingly, we've done that again in these results. Directing to the bottom right of the slide, cash conversion.

Speaker #1: Again , very , very strong . Just over 93% . It's a hallmark of the resilience of this business . And it continues to deliver consistent market leading cash outcomes .

Speaker #1: You can see the strength of the business really through a number of periods and a number of cycles. There, it's delivered cash results.

Aaron Canning: It is delivered cash results there that, regardless of the macro environment, are very strong. Importantly, as we look forward into 2027, we would expect similar levels of cash performance to what we have delivered since 2024. I would note these outcomes are consistently ahead of our capital allocation targets of above 75%. As we turn our attention to the next page, our capital investment, particularly in product. Sorry, capital investment has really been a hallmark of an enabler to our growth this year, particularly in offshore. Our investment in product development has increased year on year to 3.8% of revenue and reflects both operating expenditure and capitalized R&D investment, most notably in the Four Wheel Drive business. That has been a key driver and underperforming our resilience as a group, as I said earlier, through 2026.

Speaker #1: There that are that regardless of the macro environment , are very , very strong . Importantly , as we look forward into 27 , we would expect similar levels of cash performance to what we've delivered since 2024 .

Speaker #1: And I would note these outcomes are consistently ahead of our capital allocation targets of above 75% . As we turn our attention to the next page , our capital investment , particularly in product , sorry , capital investment has really been a hallmark of an enabler to our growth this year , particularly in offshore .

Speaker #1: Our investment in product development has increased year on year to 3.8% of revenue, and reflects both operating expenditure and capitalized R&D investment, most notably in the Full Drive business.

Speaker #1: That's been a key driver in underperforming our resilience as a group . As I said earlier , through 26 , these investment levels at 3.8% of revenue , were in line with what we reported at the first half .

Aaron Canning: These investment levels at 3.8% of revenue were in line with what we reported the H1. As we look forward to 2027, we would expect similar levels of PD investment as a proportion of revenue around the 3.5% to 4%. Capital expenditure to the graph in the middle was up marginally 3.5% on the prior year. It continues to be supported by investment in Four Wheel Drive, as well as capitalized R&D and that business as we continue to look to better align the timing of investment, particularly with OEs in that division, with the revenue-generated profile of those future business wins. As we finish the year as well, the Thailand expansion is now largely complete, with further optimization of that facility continuing into 2027.

Speaker #1: And as we look forward to 27 , we would expect similar levels of PD investment as a proportion of revenue around the three and a half to 4% capital expenditure to the graph in the middle was up marginally , 3.5% on the prior year continues to be supported by investment in four wheel drive , as well as capitalized R&D , and that business , as we continue to look to better align the timing of investment , particularly with OES , in that division , with the revenue generated profile of those future business wins .

Speaker #1: And as we finish the year as well , the the Thailand expansion is now largely complete with further optimization of that facility continuing into 27 on the right hand side of the slide , we continue to balance our investment , both between maintaining and investing in what we have today , as well as balancing that to investing in future growth .

Aaron Canning: On the right-hand side of the slide, we continue to balance our investment both between maintaining and investing in what we have today, as well as balancing that to investing in future growth. These investment levels are also very aligned to our capital allocation targets. On to the following slide, when it comes to foreign exchange, the chart on the top right-hand side, the H1 of our results of 2026, were impacted by a weaker AUD-USD cross versus the PCP. However, this impact partially unwound through our hedging position through the H2, and we benefited from both a strategic hedging strategy as well as an appreciating Australian dollar. This benefit, particularly in the H2, was helpful for us in partially offsetting inflationary cost increases such as fuel surcharges and rising freight costs, particularly through the latter half of FY26.

Speaker #1: And these investment levels are also very aligned to our capital allocation targets . Onto the following slide . When it comes to foreign exchange , the chart on the top right hand side .

Speaker #1: The first half of our results of '26 were impacted by a weaker AUD/USD cross versus the PCP. However, this impact partially unwound through our hedging position in the second half, and we benefited from both a strategic hedging strategy as well as an Australian dollar recovery.

Speaker #1: This benefit , particularly in the second half , had to was helpful for us and partially offsetting inflationary cost increases such as fuel surcharges and rising freight costs , particularly through the latter half of FY 26 .

Speaker #1: As we look into 27 in the first half of 27 , we are effectively hedged 100% against the US dollar . And this chart is just showing the Australian US dollar cross as a proxy .

Aaron Canning: As we look into 2027, in the H1 of 2027, we are effectively hedged 100% against the US dollar. This chart is just showing the Australian US dollar cross as a proxy. We obviously have other exposures as well, but it is a pretty good guide in terms of how we are thinking about 2027. The H1 of 2027 on the US dollar cross, we are in essence 4 cents above the PCP and 2 cents ahead of the H2 of 2026. On the other primary currencies, we remain highly hedged across all of those through the H1 of 2027, including the Thai baht, which the vast majority of those are favorable versus the prior year.

Speaker #1: We obviously have other exposures as well, but it's a pretty good guide in terms of how we're thinking about '27 and the first half of '27 on the US dollar cross. We're, in essence, forced ahead at $0.04 above the PCP and $0.02 ahead of the second half of '26.

Speaker #1: And on the other primary currencies, we remain highly hedged across all of those through the first half of '27, including the Thai baht, which is— the vast majority of those are favorable versus the prior year.

Speaker #1: And as we look to the second half of 2027, obviously, if rates stay around $0.70, where they are at the moment, this will obviously be beneficial into the second half of 2027 versus the PCP.

Aaron Canning: As we look to the H2 2027, obviously if rates stay around AUD 0.70 where they are at the moment, this will obviously be beneficial, into the H2 2027 versus the PCP. Importantly, when it comes to foreign exchange, though, building our natural hedge and growing our offshore earnings is an important part of the story here. It builds a natural hedge, whether it be in US dollar earnings or Asia currency earnings. For this year, for 2026, US dollar earnings now contribute 17% of our post-tax earnings before amortization. Combined US and non-ANZ earnings now represent 32% of our total post-tax earnings for the year versus 25% in the PCP. We see this growth in offshore earnings continuing and this trend continuing as we go into 2027. On to the next slide, in terms of our leverage position and our debt position.

Speaker #1: Importantly , when it comes to foreign exchange , though , building our natural hedge and growing our offshore earnings is a an important part of the story here .

Speaker #1: It builds a natural hedge , whether it be a newest dollar earnings or Asia currency earnings for this year , for 2026 , US dollar earnings now contribute 17% of our post-tax earnings before amortization and combined US and non ANZ earnings now represent 32% of our total post-tax earnings for the year , versus 25% in the PCP .

Speaker #1: We see this growth in offshore earnings continuing, and this trend continuing as we go into 2027. On to the next slide.

Speaker #1: In terms of our leverage position and our debt position, we have delivered, as we said we would do when we set our guidance in August of last year.

Aaron Canning: We have delevered, as we said we would do when we set our guidance in August of last year. Through the H2 this year, leverage at June is at 1.85, well within our target range of 1.5 to 2.25. Furthermore, as I mentioned earlier, it is worth noting leverage has improved through 2026 post the completion of the buyback and post increases to dividends as well as increases in product development spend. The business has again continued to deliver stable and predictable cash flow earnings in what is an increasingly uncertain environment. Our debt profile into the middle chart remains long dated, approximately two-thirds fixed at market-leading rates. As such, any recent or future changes in the Australian domestic interest rate environment will have a relatively low impact for us.

Speaker #1: Through the second half of this year , leverage at June is at 1.85 , while within our target range of 1.5 to 2 and a quarter .

Speaker #1: Furthermore, as I mentioned earlier, it's worth noting leverage has improved through Q4 '26. Post the completion of the buyback and post increases to dividend, as well as increases in product development spend.

Speaker #1: The business has again continued to deliver stable and predictable cash flow earnings in what is an increasingly uncertain environment. Now, our debt profile, shown in the middle chart, remains long dated.

Speaker #1: Approximately two thirds fixed at market leading rates . As such , any recent or future changes in the Australian Domestic interest rate or environment will have a relatively low impact for us and , as a guide , a 25 basis point increase or decrease domestically has about a 0.3 npat impact for us , we remain strong .

Aaron Canning: As a guide, a 25-basis point increase or decrease domestically has about a 0.3 impact for us. We have strong support from all of our lender group, with an appetite for further support should we need it. We are actually in the process of refinancing right now, and we will look to complete that before the end of the H1 2027 and extend that debt maturity profile out to the right of that chart. Just last thing on the slide, to the right-hand side of the chart, our cost of funds increased very, very marginally in the year by nine basis points, largely reflecting maturing swaps and a changing domestic interest rate environment. Then just onto our last slide before I hand back to Graeme Whickman, in terms of our capital allocation framework. In February 2025, we announced this capital allocation framework.

Speaker #1: We have strong support from all of our lender group with an appetite for further support . Should we need it , and we're actually in the process of refinancing right now , and we will look to complete that before the end of the first half of 27 .

Speaker #1: And extend that debt maturity profile out to the right of that chart . And just lastly , on the slide to the right hand side of the chart , our cost of funds increased very , very marginally in the year by nine basis points , largely reflecting maturing swaps and a change in domestic interest rate environment .

Speaker #1: And then just on to our last slide. Before I hand back to Graeme, in terms of our capital allocation framework, in February 2025 we announced this capital allocation framework.

Speaker #1: It really is a guide for how we choose to invest and where we choose to invest shareholders' money, and the returns that we are holding ourselves accountable to when we deploy that capital, both for organic and inorganic investments.

Aaron Canning: It really is a guide for how we choose to invest and where we choose to invest shareholders' money, and the returns that we are holding ourselves accountable to when we deploy that capital, both for organic and inorganic investments. Importantly, these metrics, in particular return on capital employed, form part of management's long-term incentive program, and that 15% metric is what Graeme Whickman touched before, is part of that. As the CFO, it is pleasing to report on behalf of the business and all of the teams, for 2026, we have performed in line or ahead of all of those metrics presented on this page, with the exception of return on capital, although that has improved 30 basis points. That 15% metric is a FY28 medium-term target, but we are encouraged by the progress we are making towards that.

Speaker #1: Importantly , these metrics in particular return on capital employed form part of management's long term incentive program . And that 15% metric is is what Graham touched before is part of that .

Speaker #1: You know , as the CFO , it's pleasing to report on behalf of the business and all of the teams for 2026 . We have performed in line or ahead of all of those metrics presented on this page , with the exception of Return on Capital , although that is improved 30 basis points , that 15% metric is a 20 FY 28 medium term target .

Speaker #1: But we're encouraged by the progress we're making towards that. For transparency, we continue to measure ourselves on that metric against a pre-PG impairment metric.

Aaron Canning: For transparency, we continue to measure ourselves on that metric against a pre-APG impairment metric, and we footnoted that at the bottom of the page. If we weren't to adjust for that, our return on capital would in fact be 15.7%. A very pleasing set of results, whether it be cash flow, P&L, balance sheet, capital allocation. We remain well-placed, from a financial health point of view as we step into FY27. On that basis, I'll now hand you back to Graeme to discuss our 2027 outlook.

Speaker #1: And we footnoted that at the bottom of the page. If we weren't to adjust for that, our return on capital would, in fact, be 15.7%.

Speaker #1: So look very pleasing term set of results , whether it be cash flow , PNL balance sheet capital allocation , we remain well placed from financial health point of view as we step into FY 27 .

Speaker #1: And on that basis, I'll now hand you back to Graeme to discuss our 2027 outlook. Well, Andrew, thank you very much.

Graeme Whickman: Well, thanks Andrew. Thank you very much, Andrew. That's really cool. I think that last slide, lots of green. I think Aaron, you've done a great job in terms of articulating that. I probably don't want to belabor the point other than say well done to us and the wider Amotiv team. Let's just talk about outlooks, though. Let's go to the last slide in the deck in terms of the FY27 outlook. That's slide 21. Aaron and I are communicating that you should expect modest revenue and underlying EBITA growth in FY27, with growing offshore revenue, pricing, Amotiv Unified offsetting some subdued ANZ conditions. As the footnote sets out, that's based obviously on the continuing operations, a like-for-like growth after the ECB divestment.

Speaker #1: And that's really cool . I think , you know , that last slide , lots of green . And I think Aaron , you've done a great job in terms of sort of articulating that .

Speaker #1: So, I probably don't want to belabor the point, other than saying, well done to the wider Amotiv team. Let's just talk about outlook.

Speaker #1: So, so let's go to the last slide in the deck in terms of the FY27 outlook. That's slide 21. Yeah.

Speaker #1: Aaron and I are communicating that you should expect modest revenue and underlying EBITDA growth in FY27, with growing offshore revenue and pricing at Amotiv Unified offsetting some subdued ANZ conditions.

Speaker #1: As the footnote sets out . That's based obviously on the continuing operations , a like for like growth after the ECB divestment . Now sitting behind that , it also assumes the continuation of what I'd say the prevailing economic and trading conditions with no material sort of adverse events , probably sat here at this time last year and said the same thing .

Graeme Whickman: Now, sitting behind that, it also assumes the continuation of what I'd say the prevailing economic and trading conditions with no material adverse events. Probably sat here at this time last year and said the same thing, and then suddenly we had some stuff going on in the Middle East. It also includes the further Amotiv Unified net benefits and no further material deterioration in those prevailing conditions over the remainder of FY27. We expect growing offshore contribution from the US and European markets as we continue that subdued trading along with the other items I just spoke of. In Four Wheel Drive, the business remains well-positioned for continued growth in that Chinese OEM mix I spoke about with new vehicle launches that come into FY27. The FY26 pricing annualizes this further out of cycle pricing in the H1 of FY27.

Speaker #1: And then suddenly, we had some stuff going on in the Middle East. But it also includes the further and more unified net benefits, and no further material deterioration in those prevailing conditions over the remainder of '27.

Speaker #1: You know, we expect growing offshore contribution from the US and European markets. To continue that subdued trading, along with the other items I just spoke of.

Speaker #1: And four wheel drive . The business remains well positioned for continued growth in that Chinese OEM mix . I spoke about with new vehicle launches that come into FY 27 , the FY 26 pricing analyses .

Speaker #1: There's further out of cycle pricing in the first half of FY 27 , having said that , though , the new vehicle sales pick ups and medium SUV plus and above do expect or we are expecting to remain soft in lighting , power , electrical .

Graeme Whickman: Having said that, though, the new vehicle sales, pickups and medium SUVs plus and above, we are expecting to remain soft. In lighting, power, electrical, the US and Europe growth is expected to continue. We're excited about that. Things like CFMOTO and the like. EBITA margins are expected to moderate slightly versus FY26 due to the absence of the prior year one-off and ongoing investment in the US market. ANZ headwinds are expecting to persist. That's at that macro level. In powertrain and undercar, wear and repair categories are expected to remain resilient. Infinitev is on track to break even by the end of FY27 on a run rate basis. Then if you pull the lens all the way back across Amotiv, the pricing benefits are expected to skew into the H2.

Speaker #1: The US and Europe growth is expected to continue . We're excited about that . Things like Cfmoto and the like . EBITDA margins are expected to moderate slightly versus FY 26 due to the absence of the the prior year one off and ongoing investment in the US market .

Speaker #1: And then ANZ headwinds are expected to persist—that's at that macro level. And powertrain and undercar wear and repair categories are expected to remain resilient.

Speaker #1: Infinitive is on track to break even by the end of FY 27 . On a run rate basis , and then if you pull the lens all the way back across the mode of the pricing , benefits are expected to into the second half .

Speaker #1: And that's particularly around four wheel drive and two timing . And then the LP changes to be enacted in that H2 period , more than anything else , a balance sheet strength , you know , remains in a good position .

Graeme Whickman: And that is particularly around Four Wheel Drive and PTU timing, then the LPE changes to be enacted in that H2 period more than anything else. Our balance sheet strength remains in a good position. Strong cash performance are expected to be maintained, that will always provide flexibility to support growth. Secondarily, and just as important, capital management, including the potential for buyback optionality, which we review all the time. Further Amotiv Unified benefits are expected to support the guidance, driven by some of the prioritized efficiency programs and also growth engine outcomes. Of course, all the while, we are closely monitoring what is happening in the Middle East and whether there are any further issues that we need to contemplate and mitigate against in terms of end user demand.

Speaker #1: Strong cash performance are expected to be maintained , and that will always provide flexibility to support growth . And , you know , secondarily , and just as important , capital management , including the potential for buyback optionality , which we review all the time , further , Amotiv unified benefits are expected to support the guidance driven by some of the prioritized efficiency programs , and also growth engine outcomes .

Speaker #1: And of course, all the while, we are closely monitoring what’s happening in the Middle East and whether there are any further issues that we need to contemplate and mitigate against in terms of end user demand.

Speaker #1: But like always , you know , our focus , Aaron , and I and the rest of the team is about remaining around the factors that we control .

Graeme Whickman: But like always, our focus, Aaron and I, and the rest of the team, is about remaining around the factors that we control, that notion of controlling the controllables. So that is how I characterize the outlook. Before we conclude the presentation in terms of results, and before we go to questions, I just want to turn to this morning's other announcement. So today, Amotiv announced that I would step down as the Managing Director Chief Executive Officer. So the board have commenced a, what I would call a structured, and we, I mean me as a board member as well, have commenced a structured and orderly CEO succession process. Look, I have led Amotiv for eight years, and I believe it is the right time for me to begin that next chapter of my career and for the company to go and find its next leader.

Speaker #1: That notion of controlling the controllables. So, that's how I sort of characterize the outlook before we conclude the presentation in terms of results, I think.

Speaker #1: And before we go to questions, I just want to turn to this morning's other announcement. So today I announced that I'd stepped down as the Managing Director and Chief Executive Officer.

Speaker #1: And so the board have commenced, you know, what I would call a structured—and we, that is me as a board member as well, have commenced a structured and orderly CEO succession.

Speaker #1: And process. Look, I've led Amotiv for eight years, and I believe it's the right time for me to begin that next chapter of my career.

Speaker #1: And for the company to go and find its next leader. Over the last eight years, the group’s expanded, it’s globalized, and it’s transformed into a streamlined, pure play.

Graeme Whickman: Over the last eight years, the group has expanded, it has globalized, it has transformed into a streamlined, pure-play automotive group, and it certainly is a materially different business today, certainly from the one I joined all the way back in 2018. But it is time, as you would expect after eight years, to reflect that it is time for me to move on. Automotive revenue in that time and underlying EBITDA has increased approximately 2.5 times. The operational performance has been excellent. I reflect on safety, I reflect on employee engagement. These are things that I regard as some of the truest measures of how well our business is run. We have substantially expanded our manufacturing capability. I reflect and think about how diversified our customer and geographic footprint has been. All the while, we have been delivering award-winning innovation. So, that is something to be very positive about.

Speaker #1: Automotive group. And it certainly is a materially different business today, certainly from the one I joined all the way back in 2018.

Speaker #1: But it's time , as you would expect , after eight years , to reflect that , it's time for me to to move on .

Speaker #1: Automotive revenue in that time and underlying EBITDA has increased approximately two and a half times. The operational performance has been excellent, and I reflect on safety.

Speaker #1: I reflect on employee engagement. These are things that I regard as some of the truest measures of how well a business is run.

Speaker #1: We've substantially expanded our manufacturing capability. I reflect and think about how diversified our customer and geographic footprint has been, and all the while we've been delivering award-winning innovation.

Speaker #1: So , you know , that's that's something to be very positive about . Revenue from outside . ANZ has gone from nothing to 18% of the group .

Graeme Whickman: Revenue from outside ANZ has gone from nothing to 18% of the group, and I am proud of what this team have been able to do in terms of taking this sort of industrial conglomerate to now what is an automotive pure-play and what Amotiv has become. But more relevant today is what is in place. So we have got a clear strategy. We have got a strong leadership team. We had Aaron join us less than two years ago. Our Chief Strategy Officer join us less than two years ago. We have refreshed the board as well, which is fantastic. We have got solid operating disciplines that are running through the business. As you have just seen, we have got a good set of results in the context of the market we are currently operating in with strong performance across that balanced scorecard.

Speaker #1: And I'm proud of what this team has been able to do in terms of sort of industrial conglomerate to now what is an automotive pure play, and automotive has become.

Speaker #1: But more relevant today is what's in place . So we've got a clear strategy . We've got a strong leadership team . You know , we've had Aaron join us less than two years ago .

Speaker #1: Chief strategy office join us . Less than two years ago . We've refreshed the board as well , which is fantastic . And we've got solid operating disciplines that are running through the business .

Speaker #1: And as you've just seen, we've got a good set of results in the context of the market we're currently operating in.

Speaker #1: With strong performance across that balanced scorecard. So it's precisely because Amotiv is in that position, it's the right time for an orderly leadership transition.

Graeme Whickman: So it's precisely because Amotiv is in that position, it's the right time for an orderly leadership transition. The business is well positioned to deliver the next phase of growth and value creation for shareholders. In terms of process and timing, you can read the details, but I'll continue in the role because we want to have essentially the gold standard of CEO succession, and that's been a real prime objective. I'll be here to the end of the calendar year and then put in a consultancy approach to make sure that we have essentially almost 11 months of transition, all the way through to the end of June next year. Like I say, it's supporting the gold standard transition of current business initiatives to ultimately a new managing director and chief executive.

Speaker #1: The business is well positioned to deliver the next phase of growth and value creation for shareholders in terms of process and timing. You can read the details, but I'll continue in the role because we want to have essentially the gold standard of CEO succession.

Speaker #1: And that's been a real prime objective. I'll be here until the end of the calendar year, and then put in a consultancy approach to make sure that we have essentially almost eleven months of transition, all the way through to the end of June next year.

Speaker #1: Like I say, sort of supporting the gold standard transition of current business initiatives to, ultimately, a new Managing Director and Chief Executive.

Speaker #1: And as I said , the board have commenced a global search , and they'll update the market once that appointment is made . But between now and then , my focus is unchanged .

Graeme Whickman: And as I said, the board have commenced a global search, and they'll update the market once that appointment is made. But between now and then, my focus is unchanged. I'll continue to lead the business, delivering against the priorities and outcomes that I've spoken about in terms of people, customers, and shareholders. So that's the full picture. And if you think about it, we've delivered our guidance against a challenging backdrop with some really, I think, strong results. Now we're initiating an orderly CEO transition from what I think is a very strong foundation. So I want to just finish on that, remind the listeners of that strong foundation and also the strong FY 2026 results.

Speaker #1: I'll continue to lead the business, delivering it to the priorities and outcomes that I've spoken about in terms of people, customers, and shareholders.

Speaker #1: So that's the full picture . And if you think about it , we've delivered our guidance against a challenging backdrop with some really , I think , strong results .

Speaker #1: And now we're initiating an orderly transition from what I think is a very strong foundation. So I wanted to just finish on that, remind the listeners of that strong foundation, and also the strong FY26 results.

Speaker #1: Before I go back to moderator , I want to do one last thing , which is to say the Amotiv team , who've worked really , really hard for , you know , Aaron and I and the board and delivering those FY 26 results .

Graeme Whickman: Before I go back to moderator, I want to do one last thing, which is to say thank you to the Amotiv team, who've worked really, really hard for Aaron and I and the board in delivering those FY 2026 results. So with that, I will pass back to moderator, and we'll take some questions.

Speaker #1: So with that, I will pass back to the moderator, and we'll take some questions.

Speaker #2: Thank you. If you wish to ask a question via the phones, you will need to press the star key followed by the number one on your telephone keypad.

Operator: Thank you. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via the webcast, please enter it into the Ask a Question box and hit Submit. Your first phone question comes from Tim Plum from UBS. Please go ahead.

Speaker #2: And if you wish to ask a question via the webcast, please enter it into the Ask a Question box and hit Submit.

Speaker #2: Your first question comes from Tim Plumb from UBS. Please go ahead.

Speaker #3: Hi. Hi, guys. Can you hear me?

Tim Plum: Hi. Hi, guys. Can you hear me?

Speaker #1: Yes, we can go ahead.

Graeme Whickman: Yes, we can.

Operator: We can.

Speaker #3: Great . Congratulations on on getting the number particularly against that challenging fourth quarter . And Graham , all the best on your next endeavors .

Graeme Whickman: Go ahead.

Tim Plum: Great. Congratulations on getting the number, particularly against that challenging Q4. Graeme, all the best on your next endeavors. I am sure there will be loads of questions, so I will keep it to two if possible. The first one, and apologies if I missed this, but steel pricing looks to be up quite materially on the spot market. You have also got some Thai baht tailwinds. I know you have mentioned some pricing increases in H1 2027. Can you give us a sense for what sort of steel cost uplift you are anticipating in FY 2027, and maybe how we should think about the quantum of the pricing increases that are required to kind of offset that impact?

Speaker #3: Just I'm sure there'll be loads of questions . So I'll keep it to two if possible . The first one and apologies if I missed this , but you know , steel pricing looks to be up quite materially on the spot market .

Speaker #3: You've also got some Thai baht tailwinds . And I know that you've mentioned some pricing increases in the first half of 27 . Can you give us a sense for what sort of steel cost uplift you're anticipating in FY 27 , and maybe how we should think about the quantum of the pricing increases that are required to kind of offset that impact ?

Speaker #3: And then the second question is just kind of around the Aussie consumer and any change that you've seen there into the first quarter of '27 in terms of basket size, trading down, etc.

Tim Plum: The second question is just kind of around the Aussie consumer and any change that you have seen there into Q1 2027 in terms of basket size, trading down, et cetera, compared to FY 2026. Is it just a continuation of that same subdued Aussie, or has it taken a little bit of a step down?

Speaker #3: , compared to to FY 26 , like , is it just a continuation of that same subdued Aussie or has it taken a little bit of a step down ?

Speaker #1: Well, let's unpack those two questions. We've seen some pretty extreme steel price increases in the last three to six months, you know, approaching the 30% mark.

Graeme Whickman: Well, let us unpack that, the two questions. We have seen some pretty extreme steel price increases in the last three, six months, approaching the 30% mark. I will not be that exact, for commercial reasons. That is obviously difficult to deal with. We are right now offshoring as much as we can in terms of domestic production for our Four Wheel Drive. That is one action. Obviously, we have taken cost out of the business as another action. Yes, we are in the midst of out-of-cycle OEM pricing and also pricing for our aftermarket. I will not talk specifically to the pricing actions in terms of the quantum, because again, that is commercially sensitive. But fundamentally, Aaron and I, and Jason, recognize, parking the margin for one second, because the margin has obviously dropped. The return on the capital employed on that division is not where it needs to be.

Speaker #1: I won't be that exact for commercial reasons . And that's obviously difficult to to deal with . You know , we are right now offshoring as much as we can in terms of domestic production for for our four wheel drive .

Speaker #1: So that's one action . Obviously , we've taken cost out of the business . It's another action . And yes , we're in the midst of our cycle .

Speaker #1: OEM pricing . And also pricing for aftermarket . I won't talk specifically to the pricing actions in terms of the quantum because again , that's commercially sensitive , but fundamentally , Aaron and I and Jason are recognise parking the margin for one second because the margins obviously dropped the return on the capital employed on that division is not where it needs to be .

Speaker #1: And we're taking all manner of actions to ensure that it does improve as part of the runway to getting to 15% at an overall group level.

Graeme Whickman: We are taking all manner of actions to ensure that it does improve as part of the runway to getting to 15% at an overall group level. I am not trying to be too evasive in some of my answer there, Tim, only because it is so commercially sensitive. But we are taking the actions, and we believe that we will improve both the ROCE and the margin. You will see the exit margin has improved in H2 for that division. That is how I would characterize that first situation. Like everything, like any manufacturing business in Australia, particularly Australian presence, we are facing an inflationary environment beyond just your input costs in terms of steel. We are talking about rent, we are talking about wage inflation. We are Victorian-based, so you have got other things that roll through there.

Speaker #1: So I'm not—I'm not trying to be too evasive in some of my answers there, Tim, only because it's so commercially sensitive.

Speaker #1: But we are taking the actions, and we believe that we will improve both the RoCE and the margin. You'll see the exit margin has improved in the second half.

Speaker #1: For that division . So that's how I'd characterize that first situation . And like everything , like any , any manufacturing business in Australia , particularly Australian presence , we're facing an inflationary environment beyond just your input costs in terms of steel , we're talking about rent , we're talking about wage inflation .

Speaker #1: You know , Victorian based . So you have got other things that roll through there . So it's a difficult thing to wrangle .

Graeme Whickman: It is a difficult thing to wrangle, but we have confidence that we will improve it. Turning to your second question. We are not seeing any material change in the consumer in the first start of Q1. It is a difficult thing to decipher. July is all over the place, frankly. But we are not really seeing any change in the consumer behavior that we saw at the end of Q4. It is still muted. If you think about powertrain, we are still seeing workshop bookings, in a similar sort of vein. You have seen the new vehicle sales come through in July, but those will move around, sometimes due to deliveries. You are seeing some outsized performance in BEVs, ships arriving. That is not a good read at this point. If I think about LP&E, much the same. I characterize the consumer position to be very similar as we go through.

Speaker #1: But we have confidence that we will improve it. Then, turning to your second question, we're not seeing any material change in the consumer in the first, you know, first start of Q1.

Speaker #1: It's a it's a difficult thing to decipher . You know , July is all over the place , frankly , but we're not really seeing any change in the in the consumer behaviour that we saw at the end of , of the Q4 .

Speaker #1: It's still muted . You know , if you think about powertrain , you know , we're still seeing workshop bookings in a similar sort of vein .

Speaker #1: You've seen the new vehicle sales come through in July, but those will move around sometimes due to deliveries. You're seeing some outsized performance in BEV shipments arriving.

Speaker #1: So that's not that's not a good read at this point . And then if I think about L-pa much , much the same .

Speaker #1: So I characterize the consumer position to be very similar as we go through. But that's domestic. And yet we've seen some improvement in NZ.

Graeme Whickman: But that is domestic. Yet we have seen some improvement in NZ, and we are expecting and seeing decent consumer activity as it pertains to us in our US and European markets.

Speaker #1: And, you know, we are expecting and seeing, you know, decent consumer activity as it pertains to us in our U.S. and European markets.

Tim Plum: That helps. Thank you.

Speaker #3: That helps. That helps. Thank you.

Speaker #1: Thank you

Graeme Whickman: Thank you.

Speaker #2: Thank you. Your next question comes from Mitchell Swanigan from Macquarie. Please go ahead.

Operator: Thank you. Your next question comes from Mitchell Sonogan from Macquarie. Please go ahead.

Speaker #4: Yeah . Good morning . Graham and Aaron . Thanks for taking the questions . And Graham . Yeah . Congratulations . And it's been good working with the last eight years .

Mitchell Sonogan: Yeah, good morning, Graeme and Aaron. Thanks for taking the questions. Graeme, yeah, congratulations, it has been good working with you these last 8 years. Hope you find a lot more time for getting into soccer again, mate. Maybe just another few trips over Asia there. Maybe just on the outlook, you have talked to modest revenue and underlying EBITA growth. Can you give us any sense of what you consider modest, but also just in terms of H1, H2 skew. You have got a little bit of commentary on the outlook statement there about pricing benefits are skewed towards H2. Just at a high level, how should we be thinking about H1, H2 skew in that guidance as well? Thank you.

Speaker #4: So, hope you find a lot more time for getting into soccer again, mate. Maybe just another few trips over Asia there.

Speaker #4: I just on on the outlook you've talked to modest revenue and underlying EBITDA growth . Obviously . Can you give us any sense of what you consider modest , but also just just in terms of first half , second half skew , you've got a little bit of commentary on the outlook statement there about pricing benefits to skew towards second half .

Speaker #4: So yeah , just just at a high level , how should we be thinking about first half , second half to you in that guidance as well .

Speaker #4: Thank you .

Speaker #1: Well thanks for the kind wishes , Mitch . And and the football will continue that's for sure . And eight years by the time actually finished my connection with Motiv it will be closer to nine years .

Graeme Whickman: Well, thanks for the kind wishes, Mitch. The football will continue, that is for sure. 8 years. By the time I actually finish my connection with Amotiv, it will be closer to 9 years. It is a long time. A long enjoyable time, I must say. Look, the comment around modest, we are not putting a number to that, Mitch. We have said in the past, modest could be anywhere between 0 and 2% to 3%. That is the language we probably use. That is probably a little bit pliable. It is hard and you would expect us not to come out and be as definitive as we felt we were last year because so much has changed in terms of the Middle East. We are being a little bit more guarded. We do expect growth on the back of a number of physicals.

Speaker #1: It's a long , long time . So that's that's but a long , enjoyable time . I must say . Look the the comment around modest .

Speaker #1: We're not putting a number to that, but we've said in the past 'modest' could be anywhere between, you know, zero and two to three.

Speaker #1: You know , that's what the language we probably use . But that's probably a little bit pliable . It is hard . And you'd expect you'd expect us not to come out and be as definitive as we felt we were last year , because so much has changed in terms of the Middle East .

Speaker #1: So we're being a little bit more guarded. We do expect growth on the back of a number of physicals. So, you know, what we're expecting out of the US and what we're expecting in terms of some of the market share and penetration and domestic TEU and things like that.

Graeme Whickman: What we are expecting out of the US and what we are expecting in terms of some of the market share and penetration and domestic PTU and things like that. That is certainly true, but we are not going to give a number. Secondly, in terms of pricing, look, it is just physicals. Some of the pricing, and you could see some of the exit rates. You can do the back solve. You can see some of the exit rates, whether it be gross margin, whether it be underlying to sales. If you take it down to division, you can see the exit rates improved in the H2, on the basis of some of the things we spoke about in terms of H2 pricing in the 2026 and the like. We will see a repeat of that this year. That is why we made the comment.

Speaker #1: So that's certainly true . But we're not going to give a number . And then secondly , in terms of pricing , look , we're just it's just physicals .

Speaker #1: You know , some of the pricing . And you could see some of the exit rates . You can do the back , so you can see some of the exit rates , whether it be gross margin , whether it be underlying to sales .

Speaker #1: And then if you take it down to the visual , you can see the exit rates improved in the second half on the basis of some of the things we spoke about in terms of second half pricing in FY 26 and the like , and we'll see a repeat of that this year .

Speaker #1: So that's why we made the comment . I don't want to read too much into that . The pricing is in place or in the process of being put in place , but it's back end weighted given the the time we have and the notice periods that we're required to , to give certain customers .

Graeme Whickman: I don't want to lead too much into that. The pricing is in place or in the process of being put in place, but it's back-end weighted given the time we have and the notice periods that we're required to give certain customers and that's the basis of the comment.

Speaker #1: And that's the basis of the comment.

Speaker #4: Okay . Thank you . Second one , just in terms of the four wheel drive and I guess the comments around the new vehicle sales remaining soft .

Mitchell Sonogan: Okay. Thank you. Second one, just in terms of the Four Wheel Drive and I guess the comments around the new vehicle sales remaining soft. Can you maybe just give us a little bit more color on how you're seeing some of the key models out there? You obviously get a little bit of visibility in the Ford's pipeline with where you are in the supply chain. Just keen to understand how you're seeing that, noting that you've done incredible work on getting onto a lot of the Chinese OEMs that are coming to the country as well. Thanks, Graeme.

Speaker #4: Yeah. Can you maybe just give us a little bit more color on how you're seeing some of the key models out there?

Speaker #4: And you obviously get a little bit of visibility in the forward pipeline with where you are in the supply chain.

Speaker #4: So yeah , just , just keen to understand how your you're seeing that , noting that you've done incredible work on getting on to a lot of the , the Chinese OEMs that are coming into the country as well .

Speaker #4: Thanks . Graham .

Speaker #1: Well , thanks for that . Back in , in the comment because we're super pleased at how well Jason and the team have been able to get the market coverage .

Graeme Whickman: Well, thanks for that back end of the comment, because we're super pleased at how well Jason and the team have been able to get the market coverage. Our position is not dropping away. This is not a story about market share or any of those types of things. The team, through a whole lot of hard work, by the way. You'll see in the deck later on in the appendices that we're having to work really hard and expand the level of product development energy to make sure we can keep pace with all those Chinese. All those ticks are a great testimony to us covering the market. That's a good thing to dwell on. If you think about the full year, Ford was down 5%, Toyota down 7%, D-Max probably about 10%. I think BT-50 was probably 13%. Nissan maybe close to 40%.

Speaker #1: So , you know , our position is not dropping away . This is this is not a story about market share or any of those types of things .

Speaker #1: The team it's through a whole lot of hard work , by the way , we're having . You'll see in the deck later on in the appendices that we're having to work really hard and expand the level of product development energy to make sure we can keep pace with those Chinese .

Speaker #1: But all those ticks are a great testimony to us covering the market . So that's a good thing to to dwell on . But , you know , if you think about the full year , you know , you know , Ford was down 5 to 0 to down seven D max probably about ten .

Speaker #1: I think BT was probably 13. Nissan maybe close to 40. I mean, basically the market was down in terms of pickups. Four of the top five were down materially.

Graeme Whickman: Basically, the market was down in terms of pickups. Four of the top 5 were down materially. You saw what was happening with BYD. So net of that was down 3%, but you saw a lot of mix roll through there, and that's sort of how the year finished. We're not planning to see a material change in that at all. We're trying to make our planning assumptions and be cautious as we sit and think about that. So we don't believe that we'll see much change. We do think that we'll see some of the Chinese OEM pickup mix move around a little bit because you've got some Chinese pickups recently launched or launching, and that'll move some share around. But fortunately, we've got supplier relationships with all of them. They're all customers.

Speaker #1: You saw what was happening with BYD. So, net of that, it was down three. But you saw a lot of mix roll through there.

Speaker #1: And that's sort of how the year finished . We're not we're not planning to see a material change in that at all . We're we're trying to make our planning assumptions and be cautious as we sit and think about that .

Speaker #1: So we don't believe that . We'll see much change . We do think that we'll see some of the Chinese OEM pick mix move around a little bit , because you've got some Chinese pickups recently launched or launching , and that'll move some share around .

Speaker #1: But fortunately , we're we've got supply relationships at all , and they're all customers . So we're , we're expecting to see , perhaps some of the shares traded around a little bit , but we're in a good position in that regard .

Graeme Whickman: We are expecting to see perhaps some of the share traded around a little bit, but we are in a good position in that regard. At the end of the day, we are not expecting the market to bounce back. That is important to have as a planning assumption because it drives our attention on other actions that we need to take to ultimately improve the ROCE and the returns on that particular division and the overall. That is why I spoke early on around some of the offshoring, utilizing the manufacturing asset, in terms of Keysborough. We are moving Cruisemaster down there. When I say offshore, I am talking about taking whatever we are doing domestically here and doing as much as we can into Thailand.

Speaker #1: But at the end of the day, we're not expecting the market to bounce back. And that's important to have as a planning assumption, because it drives our attention to other actions that we need to take to ultimately improve the RoCE and the returns on that particular division and overall.

Speaker #1: And that's why I spoke early on about some of the offshoring, utilizing the manufacturing asset in terms of Keysborough. So we're moving Quizmaster down there.

Speaker #1: When I say offshore , I'm talking about taking whatever we're doing domestically here and doing as much as we can into Thailand . And then the other important factor is , you know , and you can see it later on in the pack , we talk about , you know , by the time we get to FY 28 , we believe that the volume that we've been winning offshore , meaning in Europe and US will actually , in the medium term , outstrip any decline domestically .

Graeme Whickman: The other important factor is, and you can see it later on in the pack, we talk about by the time we get to FY 2028, we believe that the volume that we have been winning offshore, meaning in Europe and US, will actually in the medium term outstrip any decline domestically. That is actually a very positive thing. I think for the first time you have seen us dimension the unit volumes we are talking about when I talked to. We are pretty broad, 30,000 to 60,000 units into that European. We have other opportunities that are in the pipeline, that perhaps we will talk about in the AGM, that would further enhance our offshore credentials in terms of tow bar sales into different jurisdictions.

Speaker #1: So that's actually a very positive thing. And I think, for the first time, you've seen us dimension the sort of unit volumes we're talking about.

Speaker #1: When I talk to—and we're pretty broad—30,000 to 60,000 units in just that European market, we've got other opportunities that are in the pipeline that perhaps we'll talk about in the AGM, that would further enhance our offshore credentials in terms of towbar sales into different jurisdictions.

Speaker #1: So, that's kind of how we're thinking about the domestic market. But we're also buoyed by what we've been able to do into Europe and to the US as well.

Graeme Whickman: That is kind of how we are thinking about the domestic market, but we are kind of also buoyed by what we have been able to do into Europe and to US as well, Mitch.

Speaker #1: And that's .

Speaker #4: Thanks , Graham . And sorry , I just wanted a quick follow up just in terms of Toyota , they've obviously put out some pretty big statements about expecting to get their market shares back up towards that 20 plus percent over the coming 6 to 9 months .

Mitchell Sonogan: Thanks, Graeme. Sorry, just one super quick follow-up. Just in terms of Toyota, they have obviously put out some pretty big statements about expecting to get their market shares back up towards that 20%+ over the coming six to nine months. Are you able to give us any color as to what you are seeing in terms of some of those key big models, like the Land Cruiser, like the Prado, and the new Hilux coming through? Any color there would be appreciated. Thank you very much.

Speaker #4: Are you able to give us any color as to what you're seeing in terms of some of those key big models, like the Land Cruiser, like the Prado, and the new Hilux coming through? Any color there would be appreciated.

Speaker #4: Thank you very much .

Speaker #1: Look , I mean , it's I can't comment on what Toyota talked to . We know that Toyota are a powerhouse brand . And this market .

Graeme Whickman: Look, I cannot comment on what Toyota talked to. We know that Toyota are a powerhouse brand in this market, and we also know that any other powerhouse brand, Ford included, also would never sit idly and watch share drip through their fingers. I am sorry to use such a colloquialism. I would expect the Toyotas, the Fords, the traditional ute providers to be pretty aggressive in their response. They are not going to sit there and watch any OEM, whether it be Mitsubishi, Nissan, or indeed a plethora of Chinese utes coming in, sit there and accept lower market shares. I would back any of the established OEMs to have a good go at the pickup market. The reality is the pickup market is down a bit, yes, for sure, because of the macro.

Speaker #1: And we also know that any other powerhouse brand forward included also would never sit idly and watch share drip through their fingers.

Speaker #1: I'm sorry to use such a colloquialism. So, I would expect the Toyotas, the Fords, the traditional ute providers, to be pretty aggressive in their response.

Speaker #1: They're not going to sit there and watch any OEM, whether it be Mitzi, Nissan, or indeed a plethora of Chinese utes coming in, sit there and accept lower market shares.

Speaker #1: So I would back any of the established OEMs to have a good go at their pickup market. The reality is, the pickup market is down a bit.

Speaker #1: Yes , for sure . Because of the macro . But even if it was a 230 unit industry instead of a 250 , they're all going to fight pretty hard to get their share of it .

Graeme Whickman: Even if it was a 230-unit industry instead of a 250, they are all going to fight pretty hard to get their share of it. At the moment, people are sitting on the sidelines a little bit. You are seeing a distorted segmentation because there are so many people rushing in buying affordable cars at the moment because of what is going on, and people are sitting on the sidelines from a pickup point of view. As people start to switch their attention to pickups because scrappage sits in the background, Mitch, people still have to buy those pickups. There are just more participants there, and so it is just going to get tougher in terms of where the pricing is going to be for those OEMs, and they might have to discount a little bit more.

Speaker #1: And at the moment, people are sitting on the sidelines a little bit, and you're seeing a distorted segmentation because there are so many people rushing in and buying affordable cars at the moment because of what's going on.

Speaker #1: And people are sitting on the sidelines from a pickup point of view. As people start to switch their attention to pickups, because scrappage sits in the background, people still have to buy those pickups.

Speaker #1: There are just more participants there, and so it's just going to get tougher in terms of where the pricing is going to be for those OEMs.

Speaker #1: And they might have to discount a little bit more. But I would back any of the established brands to come out punching to try and get some of their share.

Graeme Whickman: I would back any of the established brands to come out punching to try to get some of those shares. For us, if I take that now to us, we support them all. Our tow bars, our nudge bars, our sports bars are sitting on the Toyotas and the Fords and everybody else. It is important, it is good, it is great, but at the same time, we have got that wonderful market position that sits in the background, supporting them all.

Speaker #1: So for us , if I take that now to us , we support them all our towbars , our nudge bars , our sports bars are sitting on the Toyotas and the Fords and everybody else .

Speaker #1: So it's it's important , it's good , it's great . But at the same time , we've got that wonderful market position that sits in the background supporting them all

Speaker #2: Thank you. Your next question comes from Andrew Hodge at Canaccord Genuity. Please go ahead.

Operator: Thank you. Your next question comes from Andrew Hodge from Canaccord Genuity. Please go ahead.

Speaker #4: Morning . Thanks for taking the question . Just in terms of the business , when you talked about , I guess if we think about some of the elements that are cyclical and we've talked over the last year or two about some of the cyclical downturn , whether you've started to view any parts of it , and I'm thinking particularly sort of LP reseller and the caravan business as to whether it's beyond cyclical .

Andrew Hodge: Morning, team. Thanks for taking the question. Just in terms of the business, when you talked about I guess if we think about some of the elements that are cyclical, we have talked over the last year or two about some of the cyclical downturn, whether you have started to view any parts of it, I am thinking particularly sort of LP&E reseller and the caravan business as to whether it is beyond cyclical and there is some structural element happening with regard to those parts of the business or anything else that you think may have moved from just a cyclical downturn to any kind of structural element.

Speaker #4: And is there some structural element happening with regard to those parts of the business, or anything else that you think may have moved from just a cyclical downturn to any kind of structural element?

Graeme Whickman: Thanks for the question, Andrew. As it stands at the moment, we would still consider it to be cyclical. I think, if I tick through the major areas of cyclicality, obviously we have just covered off new vehicle sales. At the end of the day, there is some forecast information, third-party forecast information that sits in the appendices that talks about where we think, or where others think that new vehicle sales will be, where they think the segmentation of pickups and SUVs will be. You can see in the medium to long run, there is definite cyclicality as it stands today, okay? The mix of Chinese within that we have just covered off. That kind of covers off the cyclicality around new vehicles. You go to buses and trucks. We know that they are an all-time low. You think about LP&E, your comment there.

Speaker #1: thanks for the question , Andrew . As it stands at the moment , we would still consider it to be cyclical . I think if I tick through the major areas of cyclicality .

Speaker #1: So obviously we've just covered off new vehicle sales . And at the end of the day , there's some forecast information . Third party forecast information that sits on the appendices that talks about where we think or where others think that new vehicle sales will be , where they think the segmentation of pickups and utes will sorry , pickups and SUVs will be .

Speaker #1: And you can see, in the medium to long run, there's definite cyclicality as it stands today. Okay. The mix of Chinese within that we've just covered off.

Speaker #1: So that kind of covers off the second category around new vehicles. Then you go to buses and trucks. We know that they're at an all-time low.

Speaker #1: So you think about LP , your comment there trucks , you know , whether you talk about Paccar , whether you talk about Volvo , whether you talk about any of the , you know , the domestic manufacturing , they're all at very low ebbs at this point in terms of jobs per day that can't go on forever .

Graeme Whickman: Trucks, whether you talk about Paccar, whether you talk about Volvo, whether you talk about any of the domestic manufacturing, they are all at very low ebbs at this point in terms of jobs per day. That cannot go on forever. Trucks need replacing by dint of them wearing out, and this is a very large continent. We are definitely that is cyclical. You could extend that to buses as well. You go to the parts of RV and caravan, which is the last part of your question. The only thing I would say there, Andrew, is the distinction between where the caravans and RVs are being built, and I think that is changing. The volume of imported caravans and RVs, I think there is a structural change happening there compared to the number that are being manufactured domestically.

Speaker #1: Trucks need replacing by dint of, you know, them wearing out. And this is a very large continent. So we’re definitely cyclical.

Speaker #1: You know , you could extend that to buses as well . And then you go to , you know , the parts of RV and caravan , which is the last part of your question .

Speaker #1: The only thing I would say there , Andrew , is the distinction between where the caravans and RV is , are being built .

Speaker #1: And I think that's changing . So the the volume of imported caravans and RVs , I think there's a structural change happening there compared to the number of being manufactured domestically .

Speaker #1: Yes . The aggregate number is secretly low , but I think as that comes back , because people are still wanting domestic tourism , there's still grey nomads and all those sorts of things going on .

Graeme Whickman: Yes, the aggregate number is cyclically low, but I think as that comes back, because people are still wanting domestic tourism, there are still Grey Nomads and all those things going on. I think the split between domestic and imported will change a little bit. For us, we have established a Chinese base, and we are actually morphing that right now. We have an Asian sourcing office, we have presence up there that to a degree, has a sales engineering capability, and we are about to uprate that. What we are finding is that the Chinese RV and caravan manufacturers want Australian brands in those vans. We have more than AUD 10 million of revenue sitting in what we call China to China programs, where we are actually putting our brands into Chinese products that then find their way down here.

Speaker #1: I think the split between domestic and imported will change a little bit. Now for us, we've established a Chinese base, and we're actually morphing that right now.

Speaker #1: So, we have an Asian sourcing office. We have presence up there that, to a degree, has a sales engineering capability. And we're about to like that.

Speaker #1: And what we're finding is that the Chinese are being caravan manufacturers want Australian brands in those vans . And so we have , you know , we have more than $10 million of revenue sitting in what we call China to China programs , where we're actually putting our brands , Chinese products that then find their way down here .

Speaker #1: And so our job is just to make sure that we maintain the penetration we've already got up in China, if that structural change was to persist.

Graeme Whickman: Our job is just to make sure that we maintain the penetration we have already got up in China if that structural change was to persist. Hopefully that gave you a bit of a flavor, Andrew, as to your question.

Speaker #1: So hopefully that gave you a bit of a flavour, Andrew, as to your question.

Speaker #5: Yeah, that's great. Thank you.

Andrew Hodge: Yeah, that is great. Thank you.

Speaker #2: Thank you. Your next question comes from Sam Tiga from Citi. Please go ahead.

Operator: Thank you. Your next question comes from Sam Teeger from Citigroup. Please go ahead.

Speaker #4: Good morning, guys. Thanks for the presentation. Graeme, all the best going forward. Eight years is an impressive stint for a CEO these days. Can we explore the ECB divestment in a bit more detail?

Sam Teeger: Good morning, guys. Thanks for the presentation. Graeme, all the best going forward. 8 years is an impressive stint for a CEO these days. Can we explore the ECB divestment in a bit more detail? Anything you can elaborate on as why you saw limited growth potential in the business?

Speaker #4: Can you elaborate on why you saw limited growth potential in the business?

Speaker #1: Well, look, I'll give you a quick answer and I'll hand to Aaron. We've got a business there that originally we were going to bring down into Keysborough, so that's the first part of the decision that led to a divestment.

Graeme Whickman: Well, look, I'll give you a quick answer and I'll hand Aaron. We've got a business there that originally we were going to bring down into Keysborough. That's the first part of the decision that led to a divestment. The second part was the growth trajectory. At the moment, as you know, we've been very disciplined with our capital allocation. We were presented with a choice as to how we wanted to expend money. There was going to be a cost to bring down to Keysborough to occupy that concrete. We knew from a demand point of view, this is facing into the same cyclical elements and also the aftermarket. We're making choices where we want to deploy the capital. We'd rather bring down Cruisemaster at a quicker pace.

Speaker #1: And then the second part was the growth trajectory . And at the moment , you know , as you know , we're being very disciplined with our capital allocation .

Speaker #1: And so we were presented with a choice as to how we wanted to expend money. There was going to be a cost to bring down to Keysborough, to occupy that concrete.

Speaker #1: And we knew, from a demand point of view, you know, this is facing into the same cyclical elements and also the aftermarket.

Speaker #1: And we're making choices where we want to deploy the capital , and we'd rather bring down trees , master at a quicker pace , and also some other subscale manufacturing that we have , which we're not disclosing today , where we'll actually continue to utilise concrete down in Keysborough .

Graeme Whickman: Also some other subscale manufacturing that we have, which we're not disclosing today, where we'll actually continue to utilize concrete down in Keysborough. Those are the two sort of factors that drove us to the decision. I know, Aaron, perhaps you want to add a little bit more to that.

Speaker #1: So those were the two sort of factors that drove us to the decision. And perhaps you want to add a little bit more to that.

Speaker #1: Yeah . Hi , Sam . Look , I won't repeat what Graham has said , but you know , this business was not growing .

Aaron Canning: Yeah. Hi, Sam. Look, I won't repeat what Graeme Whickman has said, but this business was not growing. We didn't see it being able to generate meaningful growth in the future. Its margins were under pressure. There's a capital mitigation story here. Even if we didn't choose to migrate what was an inefficient manufacturing operation from Brisbane to Melbourne, we would have had to invest meaningful amounts of capital into that business. When you consider that against a backdrop of a business that we didn't see growth going forward on, as well as purely being a domestically focused business up against a lot of also privately owned businesses competing in the same space, who don't have the same sort of capital return requirements as we do.

Speaker #1: We didn't see it being able to generate meaningful growth in the future. Its margins were under pressure. And there was also a capital mitigation story here.

Speaker #1: So even if we didn't choose to migrate what was an inefficient manufacturing operation from Brisbane to Melbourne, we would have had to invest meaningful amounts of capital into that business.

Speaker #1: And when you consider that against a backdrop of a business that we didn't see growth going forward on for going forward on as well as purely being a domestically focused business up against a lot of borso privately owned businesses competing in the same space .

Speaker #1: You don't have the same sort of capital return requirements as we do. We felt it was a better decision for the shareholder to divest that business, recycle the capital, and put it to work into other parts of their business where the returns and the growth were going to be better.

Aaron Canning: We felt it was a better decision for the shareholder to divest that business, recycle the capital and put it to work into other parts of that business where the returns and the growth were going to be better.

Speaker #4: Right . Okay . And then I've seen Nava is being sold in a range of newer entrants in the auto category , such as Bunnings and and BCF .

Sam Teeger: Right. Okay. Then I have seen NARVA is being sold in a range of newer entrants in the auto category, such as Bunnings and BCF. What is the reason you decided to support these new entrants, and how is this impacting your ranging and distribution with existing resellers such as Autobarn, Supercheap, and Repco?

Speaker #4: What's the reason you decided to support these new entrants, and how is it impacting your ranging and distribution with existing resellers such as Autobarn, Supercheap, and Repco?

Speaker #6: Sam . I should have also said thank you for your recognition . Eight years as a as a long stint . So thank you for saying that

Graeme Whickman: Sam, I should have also said thank you for your recognition. Eight years is a long stint, so thank you for saying that.

Sam Teeger: It is. No, pleasure. Thanks.

Speaker #4: It is a pleasure

Speaker #6: Thanks . The . So the decision around Bunnings and other areas . I mean , we . Nava is a power brand . It's recognised across the market .

Graeme Whickman: The decision around Bunnings and other areas, I mean, NARVA is a power brand. It is recognized across the market. We are sensitive to distribution naturally. The way we have gone into the likes of Bunnings has been deliberate. It is differentiated. In some cases, as an example, it is a different brand. So we have launched a KT brand into that, which does not exist elsewhere, which is kind of like that good, better, best approach. So, we have got to make sure that our products are ably represented in the different distribution channels. Having said that, though, we have different products that are sitting in the likes of the Repcos of the world, the Autobarns of the world, the NARVAs of the world.

Speaker #6: We're sensitive to distribution . Naturally , and the way we have gone into the likes of Bunnings and has been deliberate . It's differentiated and in some cases , as an example , it's a different brand .

Speaker #6: So we've launched a brand into that which doesn't exist elsewhere, which is kind of like that good, better, best approach.

Speaker #6: So , you know , we've got to make sure that our products are ably represented in the different distribution channels . Having said that , though , you know , we have different products that are sitting and the likes of the Repco of the world , the autobahns of the world , the nappies of the world .

Speaker #6: And so we've been very selective in what products go there . Recognising that , you know , we cover the market already and with other distributors .

Graeme Whickman: We have been very selective in what products go there, recognizing that we cover the market already with other distributors. That has not really impacted any ranging elsewhere, so it does not come with a consequence of any nature.

Speaker #6: And that's not really impacted any ranging elsewhere. So it doesn't come with consequences of any nature.

Speaker #4: Okay , great . And just a question on the outlook for the LP segment . Yeah . Just given what's before the federal court right now , can you help us understand how material is high vis to the LP segment , and how will your FY 27 sales to high vis compared to 26 and to what extent could other customers have similar claims

Sam Teeger: Okay, great. Just a question on the outlook for the LP&E segment. Just given what is before the federal court right now, can you help us understand how material is HiViz to the LP&E segment? How will your FY27 sales to HiViz compare to 2026? To what extent could other customers have similar claims?

Speaker #6: Okay. So I think you're referring to a very recent application to the federal court around conduct. This month relates to a commercial discussion we're having with one of our customers in the US.

Graeme Whickman: Okay. I think you are referring to a very recent application of the federal

Sam Teeger: Correct

Graeme Whickman: court around conduct.

Sam Teeger: Yes.

Graeme Whickman: It relates to a commercial discussion we are having with one of our customers in the US. Just to put that in context, obviously, perhaps others on the call are not aware of that. Very recent. As I said, it relates to a commercial negotiation that is ongoing in the US with one of our customers. Clearly, I have got to be sensitive in what I say, because that is also a legal discussion. What I would say is, I do not see the grounds for what has been put forward by federal court, but that will transpire a little later on. More importantly, if Aaron and I felt that the earnings profile of that particular customer within the US, and obviously within Amotiv, was of materiality in terms of earnings, then clearly we would be disclosing it to our shareholders. It is not. That is the first thing I would say.

Speaker #6: So just to put that in context , obviously , perhaps others on the call are not aware of that very recent , as I say , it relates to a commercial negotiation that's ongoing in the US with one of our customers .

Speaker #6: Now , clearly , I've got to be sensitive from what I say because that's that's also a legal discussion . What I what I would say is I don't see the grounds for what has been put forward at federal court , but that will transpire a little later on .

Speaker #6: More importantly , if we felt Aaron and I felt that the earnings profile of that particular customer within the US , and obviously within Amotiv was of materiality in terms of earnings , then clearly we'd be disclosing it to our shareholders .

Speaker #6: So it's not that's the first thing I'd say . We love that customer and we'd like to continue with that customer . But actually , the growth in the US , if I sit and reflect on the question , you just asked me .

Graeme Whickman: We love that customer, and we would like to continue with that customer. Actually the growth in the US, if I sit and reflect on the question you just asked me, year over year is actually coming not from there, but coming from the likes of CFMOTO. Shelby, Denali is hitting records. Actually, where we are growing is not particularly in that particular area if I think about year over year. Indeed, if I think about FY2027, I see no risk to what is an immaterial earnings amount of that particular customer. Park that for one second. I actually see the growth in FY2027 coming from the likes of the CFMOTO's, the Denali's, and we are just about to launch the NARVA brand in the US. Yet to be properly announced, but we are about to launch that with an e-commerce presence as well.

Speaker #6: Year over year , is actually coming , not from there , but coming from the likes of Cfmoto , Shelby , Denali's , hitting records .

Speaker #6: So actually where we're growing is not particularly in that that particular area , if I think about year over year , and indeed , if I think about FY 27 , I see no risk to what is an immaterial earnings amount of that particular customer .

Speaker #6: But park that for one second . I actually see the growth in FY 27 coming from the likes of the Cfmoto , the Denali's , and we're just about to launch the Nava brand in the US .

Speaker #6: Yet to be properly announced, but we're about to launch that with an e-commerce presence as well. So our growth in the U.S. is coming from other channels.

Graeme Whickman: Our growth in the US is coming from other channels. I have not even mentioned mining as an example, and some other customers. I do not want to belabor the point. What I am essentially saying in summary is, if it was material, we would be talking about it. We do not see any grounds to what has come through, and our growth into FY2027 is on the back of other customers, other channels. No concerns in that regard, Sam.

Speaker #6: I haven't even mentioned mining as an example, and some other customers, so I don't want to belabor the point. What I'm essentially saying in summary is, if it was material, we'd be talking about it.

Speaker #6: We don't see any grounds to what's come through, and our growth in FY27 is on the back of other customers and other channels.

Speaker #6: So, no concerns in that regard, sir.

Speaker #4: Okay, great. Thank you for clarifying that.

Sam Teeger: Okay, great. Thank you for clarifying that.

Speaker #6: Sure

Graeme Whickman: Sure.

Speaker #2: Thank you. Your next question comes from Abraham Aakre from E&P Financial. Please go ahead.

Operator: Thank you. Your next question comes from Abraham Akra from EMP Financial. Please go ahead.

Speaker #7: Hi , Graham . Hi , Aaron . Can you hear me ? Okay Yes yes yes . Yeah . Perfect . So just to understand , you went into some color on the Chinese OEMs and the vehicles coming into Australia .

Abraham Akra: Hi, Graeme. Hi, Aaron. Can you hear me okay?

Graeme Whickman: Yes.

Sam Teeger: Yes.

Abraham Akra: Yep, perfect. Just keen to understand, you went into some color on the Chinese OEMs and the vehicles coming into Australia. The Four Wheel Drive accessory attachment rate of these Chinese SUVs and pickup trucks, those are baseline assumptions for these vehicle categories. I guess versus a Ranger and a Hilux, how do you view accessories attachments for Chinese OEMs?

Speaker #7: The 4x4 accessory attachment rate of these Chinese SUVs and pickup trucks versus baseline assumptions for these legal categories—so, I guess, versus a Ranger and Hilux.

Speaker #7: How do you view accessories and attachments for Chinese OEMs? Look, it—

Graeme Whickman: Look, it differs. It is a mixed bag. It differs from customer to customer. Some of them are more mature. It also depends on the type of distribution they have in terms of dealers. Because sometimes you are getting a mix of accessories done at the dealer, sometimes you are getting it done line fit. That is why it differs. There are different levels of maturity of the dealership networks that exist and support these. It is fair to say that an established Toyota or a Ford probably has more revenue due to fitment of the maturity, either because it is line fit or the dealers.

Speaker #6: Differs . It's a mixed bag . It differs from from customer to customer . Some of them are more mature . It also it also depends on the type of distribution they have in terms of dealers , because , you know , sometimes you're getting a mix of accessories done at the dealer .

Speaker #6: Sometimes you're getting it done , line fit . And so that's , that's why it differs . There are different levels of maturity of the dealership networks that exist and support these .

Speaker #6: So it's fair to say that a Toyota , an established Toyota or Ford probably has more revenue due to fitment of the maturity because its line fit or the dealers , you know , when you buy a vehicle , as an example , you you go into your sales manager , they do the deal , they pass it over to the business manager , then pass it over to the accessories manager within the dealership .

Graeme Whickman: When you buy a vehicle, as an example, you go into your sales manager, they do a deal, they pass it over to the business manager, then passes over to the parts and accessories manager within the dealership, and that is kind of the well-worn process of a purchase journey. You probably get a bit more of a bite. You probably see that the Chinese, if they have a lower dealer network distribution capability, that you might miss there. But then we have aftermarket brands that support them anyway. So whether it is a tow bar or a nudge bar or even a sports bar, all of those can also be bought aftermarket through our brands as well. The people who are buying those vehicles will still need a tow bar, as an example, or will still need a nudge bar.

Speaker #6: And that's kind of the well-worn process of a purchase journey, so you probably get a bit more of a bite.

Speaker #6: So you probably see that the Chinese, if they have a lower dealer network distribution capability, then you might miss there. But then we've got aftermarket brands that support them anyway.

Speaker #6: So whether it's , whether it's a tow bar or a nudge bar or even a sports bar , all of those can also be bought aftermarket through our brands as well .

Speaker #6: So the people who are buying those vehicles will still need a tow bar . As an example , or still need a nudge bar if the dealership of a of a Chinese OEM doesn't offer them , then they're going to go into the market .

Graeme Whickman: If the dealership of a Chinese OEM does not offer them, then they are going to go into the market, and then that market we kind of dominate. So that is how I would characterize it. The one thing I would point out is, it is in flux. They will mature pretty quickly because they will see themselves see the revenue, because they make money on providing those nudge bars and tow bars, if they buy it from us and sell it through the dealership. So it is in their interest to actually mature their capability. Until they do not, then we sit there in the aftermarket with the Hayman Reese brands and all the other things. So I think it is a zero-sum game in terms of our impact.

Speaker #6: And then that market , we kind of dominate . So that's how I'd characterize it . The one thing I'd point out is , you know , it's in flux .

Speaker #6: And so they will mature pretty quickly because they will see—they will themselves see—the revenue, because they make money on providing those nudge bars and tow bars.

Speaker #6: If they buy it from us and sell it through the dealership, it's in their interest to actually mature their capability. And until they don't,

Speaker #1: Then we sit there in the aftermarket with the ham and cheese brands and all the other things. So I think it's a zero-sum game in terms of our impact.

Speaker #1: But we watch and we help, and we also act almost as a consultant to some of these Chinese brands, because they just don't know the market when it comes to towing.

Graeme Whickman: But we watch and we help and we also act almost as a consult for some of these Chinese brands because they just do not know the market when it comes to towing and accessories of that nature.

Speaker #1: And accessories of that nature.

Speaker #7: I'm very clear and I suppose in the year or two an OE agreement and perhaps if there is one , you have to establish a presence in China , a manufacturing facility .

Abraham Akra: Very clear. Do you foresee, I suppose in a year or 2, an OE agreement and perhaps, if there is one, do you have to establish a presence in China, manufacturing facility?

Speaker #1: Oh , look , we have we have OE agreements with all of them . What we don't have is line fit with them .

Graeme Whickman: Look, we have OE agreements with all of them. What we do not have is line fit with them. We are actually providing right now. We signed an MOU with GWM, so that particular Chinese OEM. We are actually shipping right now tow bars to China. They are getting finished in China, with a partner of ours, and then getting shipped to the GWM port of exit or factories at the moment. We actually have a blueprint for this. I do not want to speculate too freely, because obviously we are looking at the return on capital employed on this division. We are not going to be sitting here saying we are setting up more manufacturing all around the world. We set up, obviously, South Africa for obvious reasons. We have expanded Thailand, and that has now got capacity to support all the European and American wins.

Speaker #1: We are actually providing right now. So we signed an MOU with GWM, so that particular Chinese OEM. We are actually shipping right now tow bars to China.

Speaker #1: They're getting finished in China with a partner of ours, and then getting shipped to GWM port of exit or factories at the moment.

Speaker #1: So, we actually have a blueprint for this. I don't want to speculate too freely, because obviously we're looking at the return on capital employed on this division.

Speaker #1: So we're not going to be sitting here saying, 'We're, you know, setting up more manufacturing all around the world.' We've set up, obviously, South Africa for obvious reasons.

Speaker #1: We've expanded Thailand, and that's now got capacity to support all the European and American ones. We've optimized the Australian and New Zealand manufacturing operations.

Graeme Whickman: We have optimized the Australian and New Zealand manufacturing operations. The one thing that would sit there as a question mark in Jason, Aaron, and I's mind would be whether we would actually set up Chinese operations. If we were to do that, we would probably do that with a partner, and hence why we have already got a partner who is helping us supply into Chinese GWM. This is not a forecast, nor is it a guidance moment, but it is logical for us to consider what is the most efficient way once we see the OEMs from China get more traction. Look, I think the other part of that question is who is going to win and who is going to lose? There are over 100 brands sitting in China, and they are finding their way into this market very quickly.

Speaker #1: So the one thing that would sit there is a question mark . And Jason , Aaron and I as mine would be whether we would actually set up Chinese operations .

Speaker #1: And if we were to do that, we would probably do that with a partner, and that's why we've already got a partner who's helping us supply into China.

Speaker #1: GWM. So this is not a forecast, nor is it a guidance moment, but it is logical for us to consider what's the most efficient way once we see the OEMs from China get more traction.

Speaker #1: And look, I think the other part of that question is, who's going to win and who's going to lose? There are over 100 brands sitting in China, and they're finding their way into this market very quickly.

Speaker #1: Not all of those brands will survive in this market. I guarantee it. And so we've got to be careful about where we want to deploy our capital.

Graeme Whickman: Not all those brands will survive in this market, I guarantee it. We have got to be careful about where we want to deploy our capital, but until we see who the winners and losers are. Yes, they are all customers to us right now. We are working hard on product development to do that. I would be very careful, and I am sure the board would be as well, about committing to CapEx and OpEx in another jurisdiction until we were really clear about the return.

Speaker #1: But until we see who the winners and losers are , yes , we are customers . Sorry , they are all customers to us right now .

Speaker #1: And we're working hard on product development to do that . But I would be very careful , and I'm sure the board would be as well about committing to , you know , CapEx and OpEx and another jurisdiction until we were really clear about the return .

Speaker #7: That's very helpful . And one more , if I may . On slide seven . You made a note regarding the 30 to 60,000 units incrementally wins and offshore annualized in FY 28 , just curious , is that an exit for the half ?

Abraham Akra: That is very helpful. One more, if I may. On slide seven, you made a note regarding the 30,000 to 60,000 units incremental wins in offshore annualized in FY28. Just curious, is that an exit sort of half in FY28, or is it a monthly run rate exit? Just some color there, please.

Speaker #7: In FY 28 , or is that a monthly run rate exit ? Just some color there , please .

Speaker #1: Look , it's hard . It's hard to factor that in because it's depending on a few launch timings . We did , we didn't want to call out what was the exit of 27 .

Graeme Whickman: Look, it is hard to factor that in because it is depending on a few launch timings. We did not want to call out what was the exit at 2027. We just wanted to say in the medium term, if you think about FY28, that is the kind of volume you should expect increment to what we already have. I do not want to be too precise there because it does rely on the varying launches for each of them. There is more to come. We will talk about that at the AGM when we feel confident we will see some other wins come through.

Speaker #1: We just wanted to say, in the medium term, if you think about FY28, that's the kind of volume you should expect, increment to what we already have.

Speaker #1: So I don't want to be too precise there because it does rely on the varying launches for each of them. And look, there's more to come.

Speaker #1: You know , we'll talk about that at the AGM . We feel confident . We'll see some some other wins come through .

Speaker #7: Got it. Thanks. Great, thanks, Aaron.

Abraham Akra: Got it. Thanks, Graeme. Thanks, Aaron.

Operator: Thank you.

Speaker #1: Thank you . Aaron , a question , sir , are you doing well ? I'm getting sick of hearing my own voice here .

Graeme Whickman: Aaron had a question.

Jarrod Clyne: How you doing? Well, Graeme. How you doing, mate?

Graeme Whickman: I'm getting sick of hearing my own voice here, Aaron.

Speaker #1: Aaron .

Speaker #2: Thank you. Your next question comes from Jared Jealous from Morgans. Please go ahead.

Operator: Thank you. Your next question comes from Jarrod Clyne from Morgans. Please go ahead.

Speaker #8: Hey , guys . Just two quick questions . Interested just on the Cfmoto contract . I think you've called that a few times .

Jarrod Clyne: Hey, guys. Just two quick questions. Interested just on the CFMOTO contract. I think you've called out a few times. Just interested in terms of what you're seeing in that market, particularly in the US, but also given how strong volumes have been domestically. Just interested if there's any opportunity in Australia down the line. Secondly, just on ECB. I think Aaron, you called it out that margins have been weaker there, but it does look like that 20% plus margins are punching ahead of the broader segment there. Just trying to understand the headwind of that division rolling off being offset by some of the pricing you're putting through. Cheers, guys.

Speaker #8: It's of interested in terms of what you're seeing in that market , particularly in the US , but also given how strong volumes have been domestically , just interest , if there's any opportunity in Australia down the line .

Speaker #8: And secondly , just on ECB , I mean , I think , Aaron , you called it out that margins have been weaker there .

Speaker #8: But it does look like that . You know , 20% plus margins are punching ahead of the broader segment there . So just trying to understand the headwind of that division rolling off being offset by some of the pricing you're putting through these guys .

Speaker #1: Yeah . So I'll , I'll take the first part of the question . So that relationship with Cfmoto is expanding in the US from where it started .

Graeme Whickman: Yeah. I will take the first part of the question. That relationship with CFMOTO is expanding in the US from where it started. We are very happy with that. Actually, you should know also that it is under the Vision X brand. Those Ford lights and lighting solutions for CFMOTO are actually under the Vision X brand, which is encouraging. As it expands and it could go elsewhere in the world, we would expect to be carried along with that as long as we do a good job. We would expect the penetration of CFMOTO to expand because it is off the base of, I think, three or four of their products. If we do a good job, then we would expect as they launch more models, that we have the opportunity there also.

Speaker #1: We're very we're very happy with that . Actually , you should know also that it's under the vision X brand . So those those Ford lights and lighting solutions for Cfmoto are actually under the vision X brand , which is encouraging .

Speaker #1: And look as that as it expands and it could go elsewhere . In the world , we would expect to be carried along with that as long as we do a good job and we would expect the penetration of Cfmoto to expand because it's , you know , it's off the base of , I think , 3 or 4 of their products .

Speaker #1: If we do a good job . And then we'd expect , as they launch more models that we we have the opportunity there also .

Speaker #1: So , you know , Utv's ATVs side by sides , some of the , you know , two Wheeler type products in the US are going very nicely for us .

Graeme Whickman: UTVs, ATVs, side-by-sides, some of the two-wheeler type products in the US, they are going very nicely for us. Whether it is under the Vision X brand for the CFMOTO or if you take it into the two-wheeler market with Denali, with application engineering, it is going really well. Denali has hit the ball out the park as is now Vision X. Aaron and I, as an example, just approved another, I think 6 to 8 heads of application engineers based in the US as part of our North American expansion, which is something I touched on in terms of the Amotiv Unified project. Again, we will talk more about the AGM. I think that is good news and we would expect that to continue.

Speaker #1: And whether it's under the Vision brand for the CFMoto, or if you take it into the two-wheeler market with Denali, with application engineering, it's going really well.

Speaker #1: You know , Denali has hit the ball out the park , as has now . Vision X and you know , Aaron and I , as an example , just just approved another I think 6 to 8 heads of application engineers based in the US as part of our North American expansion , which is something I've touched on in terms of the the US unified project .

Speaker #1: And again, we'll talk more about the AGM. So I think that's good news, and we would expect that to continue.

Speaker #1: And then in terms of ECB, I think you know, that probably tells you that we've made some pretty measured decisions around where we want to actually deploy our capital, even though the margins are in that sort of territory.

Graeme Whickman: Then in terms of ECB, I think that probably tells you that we have made some pretty measured decisions around where we want to actually deploy our capital, even though the margins are in that sort of territory. I do not know if you want to just expand on that.

Speaker #1: I don't know if you want to just expand . Yeah . Look , I think the the numbers don't really give you enough color .

Jarrod Clyne: Yeah, I think the numbers do not really give you enough color. Let me do that. The earnings that you can see for FY2026 said AUD 4.3 million. They are not sustainable earnings. In fact, if you note the footnote at the bottom of the page, the FY2025 earnings were AUD 5.6 million. You can see the trend there over a two-year period, and we expected that trend to continue.

Speaker #1: So let me let me do that . The the earnings there , you can see for FY 26 at 4.3 million , they're not sustainable earnings .

Speaker #1: In fact if you note the footnote at the bottom of the page , the FY 25 earnings were 5.6 million . So you can see the trend there over a two year period .

Speaker #1: And we expected that trend to continue . Furthermore , as we touched on before , this business required if we were to hold a significant amounts of capital .

Aaron Canning: Furthermore, as we touched on before, this business required, if we were to hold it, significant amounts of capital. If you are going to invest significant amounts of capital against a business that is not growing and lacks scale, it really was not a sound choice for us in terms of spending money and the industry of which it operates in. As I said earlier, there is a lot of smaller, privately owned operators that operate on a very different return profile to what we would expect. It was a distraction for us, quite frankly. We saw there were better opportunities to invest in other parts of our business to drive a better return. I would say, we are very happy with the portfolio we have today from a group point of view. We have had this comment in the past.

Speaker #1: And so, if you're going to invest significant amounts of capital against a business that's not growing up and lacks scale, it really wasn't a sound choice for us in terms of spending money and the industry in which it operates.

Speaker #1: As I said earlier, there are a lot of smaller, privately owned operators that operate on a very different return profile to what we would expect.

Speaker #1: And we just it just wasn't it was a distraction for us , quite frankly . And we saw there was better opportunities to invest in other parts of our business to drive a better return .

Speaker #1: So I would say , you know , we are very , very happy with the portfolio we have today from from a group point of view , we have had this comment in the past .

Speaker #1: There's, you know, some very—there's one or two, really only one other very minor part of our business that we may consider doing something with in the future.

Aaron Canning: There is one or two, really only one other very minor part of our business that we may consider doing something with in the future. By and large, we are very happy with the businesses that we have today, and we are very happy with the returns that we believe we can derive from those businesses going forward. I take from that comment, do not expect too much more in the divestment front going forward.

Speaker #1: But by and large, we're very, very happy with the businesses that we have today, and we're very happy with the returns that we believe we can derive from those businesses going forward.

Speaker #1: So I take from that comment, don't expect too much more on the divestment front going forward.

Speaker #8: Perfect . Thanks , guys

Jarrod Clyne: Perfect. Thanks, guys.

Speaker #2: Thank you . There are no further questions at this time . You have one question on the webcast from Debbie Young from Ethical investors , who firstly expresses their thanks to you , Graham , and wishes you the best for your future endeavors .

Operator: Thank you. There are no further phone questions at this time. You have one question on the webcast from Debbie Young from Ethical Investors, who firstly expresses their thanks to you, Graeme, and wishes you the best for your future endeavors. They have a question regarding BYD and ask, "Based on previous conversation, we thought BYD makes parts in-house and now learning that Amotiv has expanded to make towing components for the 3.5 ton BYD Shark. In your view, what made BYD change their mind in terms of having third party making components?

Speaker #2: They have a question regarding BYD, and I'll—based on previous conversation, we thought BYD makes parts in-house, but now we’re learning that Amotiv has expanded to make towing components for the 3.5-ton BYD Shark.

Speaker #2: In your view, what made BYD change their mind in terms of having a third party make components?

Speaker #7: Look .

Aaron Canning: Look, thank you for the question, and also thank you, Debbie, for your comments. I appreciate that. They self-manufacture, right? The complexity of the market, when you take to the 3.5 ton, there were certain parts of that tow bar setup that they could not engineer for or supply. We have helped them out with that. We did predict, as you might be reminded, that I did say at the time when they get to the 3.5 ton variants, they might find it a little bit more challenging because this is a market that is kind of unique to a degree in that regard. We are experts in what we do, and we say that with clearly humility. That is why you have seen, on slide number 8, just how comprehensive.

Speaker #1: Thank you for the question . Also , thank you , Debbie , for your comments . I appreciate that they self manufacture right .

Speaker #1: But the complexity of the market , when you when you take it to the three and a half ton , there were certain parts of those or that are set up that they couldn't engineer for or supply .

Speaker #1: And so we've helped them out with that . We did predict , as you might be reminded that I did say at the time , when they get to the three and a half ton variants , they might find it a little bit more challenging because this is a market that's kind of unique to a degree in that regard .

Speaker #1: And , you know , we are we are experts in what we do . And we say that with clearly humility . And that's why you've seen , you know , on slide number eight , just how comprehensive you look through all those ticks on all the other OEMs that have now become customers and they're all Chinese .

Aaron Canning: You look at all those ticks on all the other OEMs, that have now become customers, and they are all Chinese, obviously it is a Chinese space. This played out probably a little bit, as we expected. We know BYD try to do as much as they can for themselves. I guess the counter to that is they reached out and asked for expertise, and that is why we have got that bit of business, full tow bar. The second part of that, counter to that discussion is, proof in the pudding on slide 8, and I do not expect that to change. We are one of very few labs in the world that can engineer for both ANZ, European, US conditions. ADR specs are hard to get to, and engineer for. It was not a surprise to us.

Speaker #1: Obviously , there's a Chinese base . So this played out probably a little bit as , as we expected . And we know BYD tried to do as much as they can for themselves .

Speaker #1: But I guess the counter to that is they've reached out and asked for expertise. And that's why we've got that form of business.

Speaker #1: It's not the full towbar. And the second part of that, counter to that discussion, is proof in the pudding on slide eight.

Speaker #1: And I don't expect that to change . You know , we're one of very few labs in the world that can engineer for both ANZ , European conditions , ADR specs are hard to to get to and engineer for .

Speaker #1: And so it wasn't a surprise to us . And look , we'll be interested to see where that goes in the future . You know , we already supply BYD on the sea lion as an example .

Aaron Canning: Look, we will be interested to see where that goes in the future. We already supply BYD on the Sealion, as an example. That is through Eagers Automotive at the moment, but that is actually transitioning to a BYD direct relationship shortly. It is not like BYD is lost to us, at all, in addition to the coverage we have across all the other Chinese OEMs. To me, it is a good news story.

Speaker #1: Now, that's through at the moment. But that's actually transitioning to a BYD direct relationship shortly. So it's not like BYD has lost to us at all.

Speaker #1: In addition to the coverage we have across all the other Chinese OEMs. So to me, it's a good news story.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Graeme for any closing remarks.

Operator: Thank you. There are no further questions at this time. I will now hand back to Graeme for any closing remarks.

Speaker #1: Okay . Well , thank you . I appreciate the time you've taken listening . Aaron , and I were delighted with some of the questions .

Aaron Canning: Well, thank you. I appreciate the time you have taken listening. Aaron and I were delighted with some of the questions. Clearly, I think the team listened to the call, taken on board some of the key messages. We are feeling very positive about the results, in terms of the context that it sits within. It has been a really challenging market, and yet we have delivered what we said a year ago, and I think we have delivered it in a way that people should feel pretty pleased about. Talking about the Amotiv team in terms of the scorecard that we presented. So we look forward, I think, Aaron, to visiting with our shareholders, visiting with

Speaker #1: Clearly, I think the team listened to the call and took on board some of the key messages. We're feeling very positive about the result in terms of the context that it sits within.

Speaker #1: It has been a really challenging market. And yet, we've delivered what we said a year ago, and I think we've delivered it in a way that people should feel pretty pleased about.

Speaker #1: And talking about the Amotiv team in terms of the scorecard that we presented . So we look forward , I think Aaron , to visiting with our shareholders , visiting with the sell side community through the course of the week , look forward to a few more questions .

Jarrod Clyne: Yes

Aaron Canning: the sell-side community through the course of the week. Look forward to a few more questions. Again, on behalf of Aaron and I, thank you to the wider Amotiv team for what was a very solid delivery in a tough time, and we expect to carry that through into FY27. So with that, we will leave you to your day. Thank you all.

Speaker #1: And then again, on behalf of Aaron and me, thank you to the wider Amotiv team for what was a very solid delivery in a tough time.

Speaker #1: And we expect to carry that through into FY 27 . So with that , we'll leave you to your day . Thank you all .

Speaker #1: Thank you everybody .

Jarrod Clyne: Thank you, everybody.

Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.