Q4 2026 Mcmillan Shakespeare Ltd Earnings Call

August 27, 2026

Speaker #1: Thank you for standing by, and welcome to the McMillan Shakespeare Limited FY26 full-year results briefing. There will be a presentation followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the McMillan Shakespeare Limited FY26 full year results briefing. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Rob De Luca, Managing Director and CEO. Please go ahead.

Operator: Thank you for standing by, and welcome to the McMillan Shakespeare Limited FY26 full year results briefing. There will be a presentation followed by a Q&A session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Rob De Luca, Managing Director and CEO. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key, followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Rob De Luca, Managing Director and CEO.

Speaker #1: Please go ahead.

Speaker #2: Thanks, Travis.

Rob De Luca: Thanks, Travis. Good morning, and thank you for joining us for the McMillan Shakespeare full year results presentation for the 2026 financial year. My name is Rob De Luca, and I am the Managing Director and Chief Executive Officer of MMS. Today, I am joined by our Chief Financial Officer, Paul Varro. I would like to start by acknowledging the traditional owners of the lands on which we join this meeting today and pay my respect to the elders, past and present. The presentation will commence with our FY26 highlights, move through segment and financial performance, provide a strategy update, and close with our outlook for FY27. This morning's presentation will refer to the slides that were released with our results. At the conclusion of the presentation, both Paul and I will be happy to take any questions you have. Moving to slide 4.

Rob De Luca: Thanks, Travis. Good morning, and thank you for joining us for the McMillan Shakespeare full year results presentation for the 2026 financial year. My name is Rob De Luca, and I am the Managing Director and Chief Executive Officer of MMS. Today, I am joined by our Chief Financial Officer, Paul Varro. I would like to start by acknowledging the traditional owners of the lands on which we join this meeting today and pay my respect to the elders, past and present. The presentation will commence with our FY 2026 highlights, move through segment and financial performance, provide a strategy update, and close with our outlook for FY27. This morning's presentation will refer to the slides that were released with our results. At the conclusion of the presentation, both Paul and I will be happy to take any questions you have. Moving to slide 4.

Speaker #3: Good morning, and thank you for joining us for the McMillan Shakespeare full-year results presentation for the 2026 financial year. My name is Rob DeLuca, and I'm the Managing Director and Chief Executive Officer of MMS.

Speaker #3: Today, I am joined by our Chief Financial Officer, Paul Varro. I'd like to start by acknowledging the traditional owners of the lands on which we join this meeting today, and pay my respects to the elders past and present.

Speaker #3: The presentation will commence with our FY26 highlights, move through segment and financial performance, provide a strategy update, and close with our outlook for FY27.

Speaker #3: This morning's presentation will refer to the slides that were released with our results. At the conclusion of the presentation, both Paul and I will be happy to take any questions you have.

Speaker #3: Moving to slide 4. FY26 was a year of strong organic growth, strategic execution, and a relentless focus on delivering excellent experiences for our customers as their trusted partner.

Rob De Luca: FY26 was a year of strong organic growth, strategic execution, and a relentless focus on delivering excellent experiences for our customers as their trusted partner. We are pleased to deliver a record profit in FY26 with NPATA and underlying EPS up 13.8%. GRS was a standout segment, with NPATA up 24.9%. MMS performance was underpinned by customer growth across all segments, where we continue to see strong digital engagement and satisfaction. We made strong progress in executing on our strategy, delivering superior customer experiences, enhanced distribution, and improved our operating margin, which was up 250 basis points, reflecting the operating leverage in our platform. We delivered attractive returns for shareholders with ROCE of 62.1% and an annual fully franked dividend of AUD 1.32 per share, and a dividend yield of 6.6%.

Speaker #3: We are pleased to deliver a record profit in FY26, with unpatterned and underlying EPS up 13.8%. GRS was a standout segment, with unpatterned up 24.9%.

Speaker #3: MMS performance was underpinned by customer growth across all segments, where we continue to see strong digital engagement and satisfaction. We made strong progress in executing on our strategy, delivering superior customer experiences, and enhancing distribution, and improved our operating margin, which was up 250 basis points, reflecting the operating leverage in our platform.

Speaker #3: We delivered attractive returns for shareholders, with a RoTE of 62.1% and an annual fully franked dividend of $1.32 per share, and a dividend yield of 6.6%.

Speaker #3: Now, moving to slide 5 and looking at some of the financial highlights for the period, where we saw strong performance across all key group metrics.

Rob De Luca: Now moving to slide 5 and looking at some of the financial highlights for the period where we saw strong performance across all key group metrics. Revenue for the year was AUD 602.1 million, up 6.8%. Operating income grew 7.2% to AUD 435.2 million. Operating expenses were up just 2.8%, which saw EBITDA grow by 14.1% to AUD 180.7 million. As previously mentioned, NPATA, our measure of underlying profitability, grew 13.8% to AUD 107.9 million, while statutory NPAT grew 11.4% to AUD 106.7 million. We continued to deliver strong returns for shareholders with ROCE of 62.1%, underlying EPS of AUD 1.55, up 13.8%, and an annual fully franked dividend of AUD 1.32 per share, comprising of a AUD 0.62 per share interim dividend and a AUD 0.70 per share final dividend.

Speaker #3: Revenue for the year was $602.1 million, up 6.8%. Operating income grew 7.2% to $435.2 million. Operating expenses were up just 2.8%, which saw EBITDA grow by 14.1% to $180.7 million.

Speaker #3: As previously mentioned, unpatterned, our measure of underlying profitability grew 13.8% to $107.9 million, while statutory NPAT grew 11.4% to $106.7 million. We continue to deliver strong returns for shareholders with ROE of 62.1%, underlying EPS of $1.55, up 13.8%, and an annual fully franked dividend of $1.32 per share, comprising a 62 cents per share interim dividend and a 70 cents per share final dividend.

Speaker #3: The results presented today are no longer normalized, as we foreshadowed at the half year, having successfully transitioned and scaled Onboard Finance within the timeframe set.

Rob De Luca: The results presented today are no longer normalized as we foreshadowed at the H1, having successfully transitioned and scaled Onboard Finance within the time frame set. Moving now to our customer highlights on slide 6. We achieved customer growth across all segments while continuing to lift digital engagement and satisfaction. In Group Remuneration Services, salary packages grew 7.1% to 402,000, and novated leases grew 13.5% to a record 90,000, with an NPS of +50, while 94% of claims are now digitally processed. These outcomes reflect the investments we've made in automation and AI-enabled processing, which is translating directly into a faster, simpler experience for our customers who continue to rate our app strongly at 4.6 star. In Asset Management Services, fleet units grew 3.3% to approximately 16,000 with an NPS of +53.

Speaker #3: Moving now to our customer highlights on slide 6. We achieved customer growth across all segments while continuing to lift digital engagement and satisfaction. In Group Remuneration Services, salary packages grew 7.1% to 402,000, and novated leases grew 13.5% to a record 90,000, with an NPS of plus 50, while 94% of claims are now digitally processed.

Speaker #3: These outcomes reflect the investments we've made in automation and AI-enabled processing, which are translating directly into a faster, simpler experience for our customers, who continue to rate our app strongly at 4.6 stars.

Speaker #3: In asset management services, fleet units grew 3.3% to approximately 60,000, with an NPS of plus 53. Our pool booking platform is enabling more customers to digitally self-serve their vehicle bookings, which was up 308%.

Rob De Luca: Our pool booking platform is enabling more customers to digitally self-serve their vehicle bookings, which was up 308%. In Plan and Support Services, customers grew 3% to 44,000 with an NPS of +45, while our digital payments platform increased the invoices processed by 45 percentage points. These results highlight the commitment to delivering market-leading customer experiences. Moving to slide 7 and highlighting how our investments and strategy execution are delivering superior customer experiences, enhancing our distribution, and resulting in productivity gains reflected in a 250 basis point improvement in our operating margin. Our first strategic priority is to excel in customer and partner experience. In the period, we continued to strengthen and grow our ecosystem of strategic partnerships with leading global automotive brands.

Speaker #3: And in Plan and Support Services, customers grew 3% to 44,000, with an NPS of plus 45, while our digital payments platform increased the invoices processed by 45 percentage points.

Speaker #3: These results highlight the commitment to delivering market-leading customer experiences. Moving to slide 7 and highlighting how our investments and strategy execution are delivering superior customer experiences, enhancing our distribution, and resulting in productivity gains reflected in a 250 basis point improvement in our operating margin.

Speaker #3: Our first strategic priority is to excel in customer and partner experience. In the period, we continued to strengthen and grow our ecosystem of strategic partnerships with leading global automotive brands.

Speaker #3: Our investment in a superior and more integrated digital platform for dealers representing OEMs is making the vehicle ownership process easier and faster for customers, while also making it more efficient for dealers.

Rob De Luca: Our investment in a superior and more integrated digital platform for dealers representing OEMs is making the vehicle ownership process easier and faster for customers while more efficient for dealers. In the period, we saw a 42% increase in the number of dealers using our platform, and were able to reduce the time from lead inquiry to settlement for customers by approximately 5 days. Our second strategic priority is to deliver simplified and scalable solutions, which we set out to achieve for Oly, our SME novated offering. In the period, we continued to significantly expand distribution, including partnerships who have strong access to SME clients like NAB. We also continued to simplify the employer onboarding experience, a key enabler for their employees to access the benefits of novated leasing.

Speaker #3: In the period, we saw a 42% increase in the number of dealers using our platform, and were able to reduce the time from lead inquiries to settlement for customers by approximately five days.

Speaker #3: Our second strategic priority is to deliver simplified and scalable solutions, which we set out to achieve for OLLI, our SME novated offering. In the period, we continued to significantly expand distribution, including partnerships with those who have strong access to SME clients, like NAB.

Speaker #3: We also continue to simplify the employer onboarding experience, a key enabler for their employees to access the benefits of novated leasing. In the period, these initiatives contributed to a 185% increase in OLLI-registered SME employers, and a 23 percentage point improvement in employer-to-lease conversion.

Rob De Luca: In the period, these initiatives contributed to 185% increase in Oly registered SME employers, and a 23 percentage point improvement in employer-to-lease conversion. Our third strategic priority is to drive technology and capability enablement, where in the period we progressed deploying AI and data capabilities with real-time agent monitoring, which is flowing through directly to improve service and productivity outcomes. These enhanced capabilities allow our agents to have access to real-time dynamic information and tools, which are helping customer inquiries be resolved faster, reflected in a 13% reduction in average handling time in the period, as well as less after-call work, which was down 18%. Now moving to slide 8, our FY26 sustainability strategy highlights. We're proud of the progress we continue to make in how we run the business responsibly.

Speaker #3: And our third strategic priority is to drive technology and capability enablement, where in the period we progressed deploying AI and data capabilities, with real-time agent monitoring.

Speaker #3: This is flowing through directly to improve service and productivity outcomes. These enhanced capabilities allow our agents to have access to real-time, dynamic information and tools, which are helping customer inquiries be resolved faster.

Speaker #3: This reflects a 13% reduction in average handling time over the period, as well as less after-call work, which was down 18%. Now, moving to slide 8, our FY26 sustainability strategy highlights.

Speaker #3: We're proud of the progress we continue to make in how we run the business responsibly. We were upgraded to a Morgan Stanley Capital International ESG rating of AAA in March, achieved 105.6% gender pay equity in like-for-like roles, and have again been certified as a great place to work.

Rob De Luca: We were upgraded to a Morgan Stanley Capital International ESG rating of AAA in March, achieved 105.6% gender pay equity in like for like roles, and have again been certified as a great place to work. We supported Bravery Trust, mentored young people with disabilities through the Australian Disability Network, and commenced our WRAP innovative program in September last year. 100% of MMS sites now run on green power or renewable electricity. 42% of our internal car fleet are BEVs, and we funded AUD 12.6 million of fleet EVs through green finance during the year. I will now take you through the performance of each of our segments in more detail, starting with GRS. On slide 10, our largest segment and a leading provider in salary packaging and novated leasing delivered a strong result. Revenue grew 11.2% to AUD 351 million.

Speaker #3: We supported Bravery Trust, mentored young people with disabilities through the Australian Disability Network, and commenced our RAP innovative program in September last year. One hundred percent of MMS sites now run on green power or renewable electricity, 42% of our internal car fleet are BEVs, and we funded $12.6 million of fleet EVs through green finance during the year.

Speaker #3: I will now take you through the performance of each of our segments in more detail, starting with GRS. On slide 10, our largest segment and a leading provider in salary packaging and novated leasing delivered a strong result.

Speaker #3: Revenue grew 11.2% to $351 million. Operating income was up 10.3% to $320.8 million, and EBITDA had a growth of 24.8% to $137.2 million. This took the operating margin to 42.8%, up 498 basis points on PCP.

Rob De Luca: Operating income was up 10.3% to AUD 320.8 million, and EBITDA had a growth of 24.8% to AUD 137.2 million, taking the operating margin to 42.8%, a 498 basis points on PCP. This strong performance highlights the scalability of the GRS platform. This financial performance was supported by strong customer growth and operating performance. Salary packages were up 7.1% in the period, supported by 14 net new client wins in the year. Novated leases were up 13.5%, underpinned by novated sales growth of 8.4% for the full year. Pleasingly, that performance accelerated through the H2, up 19.5% half on half. Our Onboard Finance receivables book grew 16.6% to AUD 587 million. While focus on productivity contributed to customers per FTE improving 17.5%, a clear sign the investment we made in growing novated sales capability through the year is paying off in both volume and efficiency.

Speaker #3: This strong performance highlights the scalability of the GRS platform. This financial performance was supported by strong customer growth and operating performance. Salary packages were up 7.1% in the period, supported by 14 net new client wins in the year. Novated leases were up 13.5%, underpinned by novated sales growth of 8.4% for the full year. Pleasingly, that performance accelerated through the second half, up 19.5% half on half.

Speaker #3: Our onboard finance receivables book grew 16.6% to $587 million. While focused on productivity, contribution to customers per FTE improved 17.5%—a clear sign the investment we made in growing Novated sales capability through the year is paying off in both volume and efficiency.

Speaker #3: OLLI Novated sales growth was 77%, which validates our SME distribution strategy. Novated Lease yield was down 3% on PCP, reflecting the prior year plug-in hybrid surge and competitive value proposition enhancements made to support growth.

Rob De Luca: Oly novated sales growth was 77%, which validates our SME distribution strategy. Novated lease yield was down 3% on PCP, reflecting prior year plug-in hybrid surge and competitive value proposition enhancements made to support growth. Now turning to slide 11, Asset Management Services, which reflects our specialist fleet management business. Revenue was up 1.3% to AUD 188.4 million, with fleet units up 3.3% to approximately 16,000. This was underpinned by 20 net new client wins in the period, which saw a 30% growth in managed only units. As customers continue to hold vehicles for longer and fleet replacement cycles slowed, written down value was down 1%, contributing to a 1.7% lower operating income. These dynamics also impacted end-of-contract unit sales, which were down 9%, while higher yields benefited from greater proportion of early terminations, attracting higher exit fees.

Speaker #3: Now, turning to slide 11, Asset Management Services, which reflects our specialist fleet management business. Revenue was up 1.3% to $188.4 million, with fleet units up 3.3% to approximately 16,000.

Speaker #3: This was underpinned by 20 net new client wins in the period, which saw a 30% growth in managed-only units. As customers continue to hold vehicles for longer and fleet replacement cycles slowed, written-down value was down 1%, contributing to a 1.7% lower operating income.

Speaker #3: These dynamics also impacted end-of-contract unit sales, which were down 9%, while higher yields benefited from a greater proportion of early terminations attracting higher exit fees.

Speaker #3: Productivity continued to be a focus throughout the year, with lease assets per FTE up 17.2% on PCP. The business incurred one-off costs during the year to implement business process outsourcing and transition to a single retail yard.

Rob De Luca: Productivity continued to be a focus throughout the year, with the leased assets per FTE up 17.2% on PCP. The business incurred one-off costs during the year to implement business process outsourcing and transition to a single retail yard. This one-off cost contributed to EBITDA being down 4.8% to AUD 27.7 million on PCP, while operating margin remained strong at 53.6%. Now turning to Plan and Support Services on slide 12. PSS now manages the plans of 44,000 participants, making PSS the second-largest NDIS plan manager. Revenue grew 5.9% to AUD 59.8 million, more than offsetting the removal of NDIS setup fees from 1 July 2025, which represented a 7.9% headwind of FY25 revenue. NDIA and NDIS Quality and Safeguards Commission continue to strengthen compliance and payment integrity requirements across the sector, supporting improved outcomes for participants and scheme sustainability.

Speaker #3: This one-off cost contributed to EBITDA being down 4.8% to $27.7 million on PCP, while operating margin remained strong at 53.6%. Now, turning to Plan and Support Services on slide 12.

Speaker #3: PSS now manages the plans of 44,000 participants, making PSS the second largest NDIS plan manager. Revenue grew 5.9% to $59.8 million, more than offsetting the removal of NDIS setup fees from 1 July 2025, which represented a 7.9% headwind to FY25 revenue.

Speaker #3: NDIA and the NDIS Quality and Safeguards Commission continue to strengthen compliance and payment integrity requirements across the sector, supporting improved outcomes for participants and scheme sustainability.

Speaker #3: Industry-wide compliance requirements from the NDIA resulted in an 88% increase in claims subject to review during the year. Operating expenses during the period reflected the acquisition of My Plan Support in May 2025, higher scheme compliance costs, and investments to support enhanced payment integrity technology.

Rob De Luca: Industry-wide compliance requirements from the NDIA resulted in 88% increase in claims subject to review during the year. Operating expenses during the period reflected the acquisition of My Plan Support in May 2025, higher scheme compliance costs, and investments to support enhanced payment integrity technology. These costs, combined with the removal of setup fees by the NDIA, contributed to an EBITDA of AUD 15.1 million. Our investments in automation continue to deliver productivity benefits, with customers to FCA improving 14.5% on PCP. These investments also strengthen fraud detection capability to support our customers and our competitive position as a leading plan manager. I will now hand over to Paul Varro, our CFO, who will take you through the group's financials for FY26.

Speaker #3: These costs, combined with the removal of setup fees by the NDIA, contributed to an EBITDA of $15.1 million. Our investments in automation continue to deliver productivity benefits, with customers to FTE improving 14.5% on PCP.

Speaker #3: These investments also strengthen fraud detection capability to support our customers and our competitive position as a leading plan manager. I will now hand over to Paul Varro, our CFO, who will take you through the Group's financials for FY26.

Speaker #1: Thanks, Rob. And good morning, everyone. If you turn to page 14, what we thought we'd do is lay out some of the key financial outcomes for FY26 in more detail.

Paul Varro: Thanks, Rob, and good morning, everyone. If you turn to page 14, what we thought we'd do is lay out some of the key financial outcomes for FY26 in more detail. As noted by Rob earlier, our results are no longer recorded on a normalized basis. Comparatives are presented on a non-normalized basis for consistency with the current year results. On the left-hand side of page 14, you'll see the P&L. As you can see, versus FY25, revenue grew year on year by AUD 38 million or 6.8%, with revenue growth across all business segments, and in particular GRS, which grew revenue 11%, supported by excellent growth in novated leasing up 8.4%, and Onboard Finance interest. Onboard Finance continues to perform in line with our expectations, with receivables up 16.6% year on year. Onboard results reported in the GRS business segment.

Speaker #1: As noted by Rob earlier, our results are no longer reported on a normalized basis. Comparatives are presented on a non-normalized basis, for consistency with the current year results.

Speaker #1: On the left-hand side of page 14, you'll see the P&L. As you can see, versus FY25, revenue grew year on year by $38 million, or 6.8%, with revenue growth across all business segments, and in particular GRS, which grew revenue 11%, supported by excellent growth in Novated Leasing, up 8.4%, and onboard finance interest.

Speaker #1: Onboard Finance continues to perform in line with our expectations, with receivables up 16.6% year on year. Onboard results are reported in the GRS business segment.

Speaker #1: Cost of sales were higher by $8.8 million, reflecting higher business activity levels, including AMS remarketing values, and continued growth in onboard finance as noted previously.

Paul Varro: Cost of sales were higher by AUD 8.8 million, reflecting higher business activity levels, including AMS remarketing values and continued growth in Onboard Finance, as noted previously. There is a table at the bottom left of page 14 with the cost of sales breakdown for your information. Revenue and cost of sales combined to deliver operating income growth of AUD 29.5 million or 7.2%. Operating expenses increased by just 2.8%, reflecting strong cost management and productivity gains across the business. Our focus on productivity, along with our income growth, has delivered positive operating leverage for MMS in FY26, with EBITDA up 14.1% and operating margin up 250 basis points to 41.5%, highlighting the scalability and efficiency of the MMS platform. Depreciation and amortization increased AUD 3.3 million, reflecting the successful completion of the Simply Stronger program in FY25.

Speaker #1: There is a table at the bottom left of page 14 with the cost of sales breakdown for your information. Revenue and cost of sales combined to deliver operating income growth of $29.5 million, or 7.2%.

Speaker #1: Operating expenses increased by just 2.8%, reflecting strong cost management and productivity gains across the business. Our focus on productivity, along with our income growth, has delivered positive operating leverage for MMS in FY26, with EBITDA up 14.1% and operating margin up 250 basis points to 41.5%, highlighting the scalability and efficiency of the MMS platform.

Speaker #1: Depreciation and amortization increased $3.3 million, reflecting the successful completion of the Simply Stronger program in FY25. The outcome of our strong performance across a number of key P&L lines resulted in a record NPAT of $107.9 million, up 13.8%.

Paul Varro: The outcome of our strong performance across a number of key P&L lines resulted in a record NPATA of AUD 107.9 million, up 13.8%. On the right-hand side of page 14, we have our operating expense profile, walking you from FY25 to FY26. As you move from left to right, the first bar shows our cost increases due to wage and vendor inflation of AUD 7.1 million, offset by savings from non-recurring costs of AUD 6.1 million, primarily due to the successful conclusion of the Simply Stronger program in FY25. We continue to invest in growth, in particular with investments in Oly up AUD 5.9 million, which delivered a 77% growth in Oly novated sales. In addition, we invested in sales and distribution capacity and, following the acquisition of My Plan Support in May 2025, included their operating costs of AUD 2.5 million.

Speaker #1: On the right-hand side of page 14, we have our operating expense profile, walking you from FY25 to FY26. As you move from left to right, the first bar shows our cost increases due to wage and vendor inflation of $7.1 million, offset by savings from non-recurring costs of $6.1 million, primarily due to the successful conclusion of the Simply Stronger program in FY25.

Speaker #1: We continue to invest in growth, in particular with investments in OLI, up $5.9 million, which delivered 77% growth in OLI novated sales. In addition, we invested in sales and distribution capacity, and, following the acquisition of My Plan Support in May 2025, included their operating costs of $2.5 million.

Speaker #1: Our investments in productivity initiatives delivered net savings of $7.5 million across all business segments. During the year, we also commenced a business process outsourcing initiative designed to further enhance efficiency and scalability.

Paul Varro: Our investments in productivity initiatives delivered net savings of AUD 7.5 million across all business segments. During the year, we also commenced a business process outsourcing initiative designed to further enhance efficiency and scalability. Implementation costs of AUD 1.4 million were incurred in FY26, with further benefits on top of those delivered in FY26 expected to be realized in future periods. All up, operating costs grew just 2.8%, a testament to our focused cost management. Turning to page 15, the balance sheet remains strong with net assets growing to AUD 126.4 million. Our key covenant metrics on the top right-hand side all remain comfortably inside threshold levels, allowing us flexibility moving forward. On the bottom right, following the successful extension of the Onboard Finance and AMS funding facilities, we have no maturities due over the next 12 months and a well-balanced maturity profile out to 2030. Lastly, turning to page 16.

Speaker #1: Implementation costs of $1.4 million were incurred in FY26, with further benefits, on top of those delivered in FY26, expected to be realized in future periods.

Speaker #1: All up, operating costs grew just 2.8%, a testament to our focus on cost management. Turning to page 15, the balance sheet remains strong, with net assets growing to $126.4 million.

Paul Varro: Turning to page 15, the balance sheet remains strong with net assets growing to AUD 126.4 million. Our key covenant metrics on the top right-hand side all remain comfortably inside threshold levels, allowing us flexibility moving forward. On the bottom right, following the successful extension of the Onboard Finance and AMS funding facilities, we have no maturities due over the next 12 months and a well-balanced maturity profile out to 2030. Lastly, turning to page 16.

Speaker #1: Our key covenant metrics, on the top right-hand side, all remain comfortably inside threshold levels, allowing us flexibility moving forward. On the bottom right, following the successful extension of the Onboard Finance and AMS funding facilities, we have no maturities due over the next 12 months and a well-balanced maturity profile out to 2030.

Speaker #1: Lastly, turning to page 16, our cash generation remains strong, with an underlying cash conversion of 111%, noting the elevated tax installment paid in FY26 as the benefits of the temporary full expensing program partially reverted in the period.

Paul Varro: Our cash generation remains strong with an underlying cash conversion of 111%, noting the elevated tax installment paid in FY26 as the benefits of the temporary full expensing program partially reverted in the period. Our strong and flexible balance sheet positions us well to manage our capital efficiently and to ensure long-term growth while balancing returns to shareholders. in this H1, the board has declared a fully franked dividend of AUD 0.70 per share, representing 85% of NPATA, the midpoint of our payout range of 70% to 100%. This distribution, when coupled with the H1 2026 dividend, takes our annual dividend to AUD 1.32 and a dividend yield at an attractive 6.6%. Overall, it has been a strong performance for FY26, with all businesses growing revenue, positive operating leverage, a record NPATA, and a balance sheet that is well positioned to enter FY27 with plenty of flexibility to grow.

Speaker #1: Our strong and flexible balance sheet positions us well to manage our capital efficiently and to ensure long-term growth, while balancing returns to shareholders. In this half, the Board has declared a fully franked dividend of 70 cents per share, representing 85% of NPAT, the midpoint of our payout range of 70 to 100%.

Speaker #1: This distribution, when coupled with the first half 2026 dividend, takes our annual dividend to 132 cents, and a dividend yield at an attractive 6.6%.

Speaker #1: Overall, it's been a strong performance for FY26, with all businesses growing revenue, positive operating leverage, a record NPAT, and a balance sheet that is well positioned to enter FY27, with plenty of flexibility to grow.

Speaker #1: With that, I'll hand it back to Rob, who will take you through our strategy and outlook.

Paul Varro: With that, I will hand it back to Rob, who will take you through our strategy and outlook.

Speaker #2: Thank you, Paul. Now, moving to slide 18. As a trusted partner, we remain committed to providing solutions that make matters simple for our customers.

Rob De Luca: Thank you, Paul. Now moving to slide 18. As a trusted partner, we remain committed to providing solutions that make matters simple for our customers. We deliver on that through our three strategic priorities, excel in customer and partner experience to grow trusted relationships, deliver simplified and scalable solutions to meet evolving customer needs, and drive technology and capability enablement to serve our customers more productively. Underpinning this is our core competencies. Managing B2B2C relationships, delivering simplified solutions, financing and conditional payments, leveraging data and technology, and harnessing our ecosystem partnerships. Together, they drive outcomes we have talked through today. High NPS, strong margin, high ROCE, EPS growth, and being recognized as an employer of choice. As you can see on slide 19, we are a trusted partner with attractive financial characteristics, delivering long-term growth for shareholders.

Speaker #2: We deliver on that through our three strategic priorities: excellent customer and partner experience to grow trusted relationships, delivering simplified and scalable solutions to meet evolving customer needs, and driving technology and capability enablement to serve our customers more productively.

Speaker #2: Underpinning this are our core competencies: managing B2B2C relationships, delivering simplified solutions, financing and conditional payments, leveraging pattern and technology, and harnessing our ecosystem partnerships.

Speaker #2: Together, they drive outcomes we've talked through today: high NPS, strong margin, high ROCE, EPS growth, and being recognized as an employer of choice. As you can see on slide 19, we are a trusted partner with attractive financial characteristics, delivering long-term growth for shareholders.

Speaker #2: As a leading and scale provider in our markets, we have 402,000 salary packages, 106,000 mobility solutions under management—which includes 90,000 novated leases and 16,000 fleet units—and support 44,000 PSS customers.

Rob De Luca: As a leading and scale provider in our markets, we have 402,000 salary packages, 106,000 mobility solutions under management, which includes 90,000 novated leases and 16,000 fleet units, and support 44,000 PSS customers. We have a reach of 2.6 million consumers and over 53,000 businesses, which gives us significant opportunities for growth. We have built sustained relationships over time to become a trusted partner for our customers. Maxxia and RemServ carry a Net Promoter Score of plus 50. Interleasing sits at plus 53 NPS. PSS has a strong NPS of plus 45. While over the last 12 months, we have retained 100% of our GRS and AMS top 20 clients. We run on a scalable technology-enabled platform, which manages approximately AUD 8 billion in payments, AUD 1.7 billion in financed assets, and delivered 14.1% improvement in customers per FTE productivity in the period.

Speaker #2: We have a reach of 2.6 million consumers and over 53,000 businesses, which gives us significant opportunities for growth. We have built sustained relationships over time to become a trusted partner for our customers.

Speaker #2: Maxio and Remserve carry a Net Promoter Score of plus 50; Interleasing sits at plus 53 NPS, and PSS has a strong NPS of plus 45.

Speaker #2: Well, over the last 12 months, we have retained 100% of our GRS and AMS top 20 clients. We operate on a scalable, technology-enabled platform which manages approximately $8 billion in payments, $1.7 billion in finance assets, and delivered a 14.1% improvement in customers per FTE productivity in the period.

Speaker #2: The financial characteristics that come with all of that are attractive by any measure: a 41.5% operating margin, 62.1% gross margin, 50% recurring revenue, and underlying cash conversion of 111%.

Rob De Luca: The financial characteristics that come with all of that are attractive by any measure. A 41.5% operating margin, 62.1% ROCE, 50% recurring revenue, and underlying cash conversion of 111%. Let me now move to slide 20 and reflect on our proven record in consistently delivering strong financial outcomes and attractive returns for shareholders since setting our strategy in 2023. Revenue has grown at 9.1% CAGR over this period, while NPATA has grown at 17.6% CAGR over the same period, reflecting the scalable platform we've built. Our disciplined approach to delivering strong returns is reflected in ROCE, which has expanded from 35.7% to 62.1%, up 26.4 percentage points. While over the same period, our underlying EPS has grown from AUD 0.92 to AUD 1.55, an 18.9% CAGR. Now turning to slide 21 and our outlook for FY27. As a market leader, MMS enters FY27 from a position of strength.

Speaker #2: Let me now move to slide 20 and reflect on our proven record in consistently delivering strong financial outcomes and attractive returns for shareholders since setting our strategy in 2023.

Speaker #2: Revenue has grown at 9.1% CAGR over this period, while UNPATA has grown at 17.6% CAGR over the same period, reflecting the scalable platform we've built.

Speaker #2: Our disciplined approach to delivering strong returns is reflected in RoA, which has expanded from 35.7% to 62.1%, up 26.4 percentage points. While over the same period, our underlying EPS has grown from $0.92 to $1.55, an 18.9% CAGR.

Speaker #2: Now, turning to slide 21 and our outlook for FY27. As a market leader, MMS enters FY27 from a position of strength. We expect FY27 to be a supportive environment for business growth.

Rob De Luca: We expect FY27 to be a supported environment for business growth. Certainty of the EV FBT exemption and preferences for fuel-efficient vehicles is expected to support growth in novated leasing and fleet management. Demand for salary packaging is expected to continue to benefit from ongoing cost of living and inflationary pressures. The current dynamics of elevated demand for EVs and softer demand for ICE-used vehicles are expected to be reflected in remarketing income. As the second largest plan management provider, we are well positioned and will continue our engagement with the government and industry on the emerging NDIS reforms. We will maintain a disciplined approach to delivering productivity gains, which will support selective reinvestment in broadening our sales capability while continuing to deliver an enhanced value to customers in a competitive market. Finally, we will continue to execute on our strategic priorities. One, excel in customer and partner experience.

Speaker #2: Certainty regarding the EV and FBT exemption, as well as preferences for fuel-efficient vehicles, is expected to support growth in novated leasing and fleet management. Demand for salary packaging is expected to continue to benefit from ongoing cost-of-living and inflationary pressures.

Speaker #2: The current dynamics of elevated demand for EVs and softer demand for ICE used vehicles are expected to be reflected in remarketing income. As the second-largest planned management provider, we are well positioned and will continue our engagement with the government and industry on the emerging NDIS reforms.

Speaker #2: We will maintain a disciplined approach to delivering productivity gains, which will support selective reinvestment in broadening our sales capability, while continuing to deliver enhanced value to customers in a competitive market.

Speaker #2: Finally, we will continue to execute on our strategic priorities: one, excellent customer and partner experience; two, deliver simplified and scalable solutions; three, drive technology and capability enablement.

Rob De Luca: Two, deliver simplified and scalable solutions. Three, drive technology and capability enablement. Thank you for your time this morning and continued support. Paul and I would now welcome any questions you may have. I will now pass to Travis to moderate questions.

Speaker #2: Thank you for your time this morning and your continued support. Paul and I would now welcome any questions you may have. I will now pass to Travis to moderate questions.

Speaker #3: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speakerphone, please pick up the handset to ask your question. The first question today comes from Phil Chippindale from Ord Minnett. Please go ahead.

Speaker #3: If you're on speakerphone, please pick up the handset to ask your question. The first question today comes from Field Chippendale from Ord Minute.

Speaker #3: Please go ahead.

Speaker #2: Oh, hi Rob and Paul, thanks for your time. First question, just on novated volumes. Rob, earlier you mentioned that second-half volume growth was around 19.5%.

Phil Chippindale: Oh, hi, Rob and Paul. Thanks for your time. Our first question, just on novated volumes. Rob, earlier you mentioned that H2 volume growth was around 19.5%, but clearly over the 6 months, there was a significant variance in volume growth over the period. You have then given us an update in July that the volumes in that month were up around 8%. Do you view that 8% number as sort of being a more normalized outcome? In other words, are we sort of through a lot of the tariff-related disruptions and sort of those spikes in activity?

Speaker #2: But clearly, over the six months, there was a significant variance in volume growth over the period. You've then given us an update in July that volumes in that month were up around 8%.

Speaker #2: Do you view that 8% number as sort of being a more normalized outcome? In other words, are we sort of through a lot of the around the later disruptions and sort of those spikes in activity?

Speaker #4: Yeah, look, great question, Phil. And always challenging to have a view of, kind of, outlook on any kind of measure or metric. Certainly, we saw a bit of volatility in terms of the last 12 months.

Rob De Luca: Well, great question, Phil, and always challenging to have a view of kind of outlook on any kind of measure or metric. Certainly, we saw a bit of volatility in terms of the last 12 months, in the H2. Firstly, I think with the market just unsure around what the government's position was going to be on the FBT exemption for EVs. Secondly, obviously the fuel crisis off the war. We have certainly seen things come back to a little bit more what I would call expectations of what we probably had for the period. Obviously July, 8% sales growth is good. Orders are still strong. The month of July, I think, is up 18% on orders. So there is still certainly good demand there at the moment in the market. How long that lasts, what that looks like over what period of time, always difficult to say.

Speaker #4: In the second half, firstly, I think we had the market just unsure around what the government's position was going to be on the FBT exemption for EVs, and then secondly, obviously, the fuel crisis off the war.

Speaker #4: We've certainly seen things come back to a little bit more of what I would call the expectations we probably had for the period. Obviously, July 8% sales growth is good.

Speaker #4: Orders are still strong. The month of July, I think, is up 18% on orders, so there's certainly still good demand there at the moment in the market.

Speaker #4: How long that lasts, what that looks like, over what period of time—always difficult to say. Where our own analysis has shown, historically, the long-term growth for Novated sales in our business has been about 6% CAGR over a very long period of time.

Rob De Luca: Where our own analysis has shown historically the long-term growth for novated sales in our business has been about 6%, a CAGR over a very long period of time. That is obviously fluctuated over different periods, but certainly, where we are seeing things at the moment, it feels like it is getting back to a level we probably expected 6 months ago. Again, obviously, different external factors drive that.

Speaker #4: That's obviously fluctuated over different periods, but certainly, where we're seeing things at the moment, it feels like it's getting back to a level we probably expected.

Speaker #4: Six months ago. But again, obviously, different external factors drive that.

Speaker #2: Yeah, I’m seeing. Just pivoting to the yield then—you've mentioned that the yield to the year is down 3%, but I think the first half was up around 1.6%.

Phil Chippindale: Yeah, understand. Just pivoting to the yield then. You mentioned that the yield for the year is down 3%, but I think the H1 was up around 1.6%. So it implies the H2 is down 4% or 5%. In your commentary, you did mention that you are cycling the SEV numbers in the PCP. Is that a NAIF reference there? Is it effectively you are talking about the lower average vehicle value in this period? Then, just a related follow-up. What are you seeing in terms of new vehicles as a proportion of novated sales over the last six months? Presumably, that has increased.

Speaker #2: So, that sort of implies the second half was down 4 or 5%. In your commentary, you did mention that you're cycling the Fed numbers in the PCT.

Speaker #2: Is that a NAIF reference there? Effectively, are you talking about the lower average vehicle value in this period? And then just a related sort of follow-up: What are you seeing in terms of new vehicles as a proportion of novated sales over the last six months?

Speaker #2: Is that, presumably, something that has increased?

Speaker #4: Yeah, so look, obviously from a yield perspective, some of the elements that have played out for us over the last period—I think the first is, yeah, the plug-in hybrid in FY25.

Rob De Luca: Yeah. So look, obviously from a yield perspective, some of the elements that played out for us over the last period, I think the first is, yeah, the plug-in hybrid in FY2025. The H2 on the H1 in 2025, our yield was up 5%, and that reflected largely high-valued plug-in hybrids at the time, like the Shark and others that are generally at a higher price point than what we are seeing today in our BEVs. So that is kind of the first thing. So we lap that in the H2, which we will not expect to happen in FY2027. The second, in terms of EVs, yeah, I mean, our proportion of EVs in the H2 was about 70%, versus the H1 being about 49%. And what we are seeing is the value coming down on average as new makes and models come into the market.

Speaker #4: The second half on the first half in ’25, our yield was up 5%, and that reflected largely high-valued plug-in hybrids at the time, like the Sharks and others.

Speaker #4: So they're generally at a higher price point than what we're seeing today in our BEVs. So that's kind of the first thing. So we lapped that in the second half, which we weren't expecting to happen in FY27.

Speaker #4: The second, in terms of EVs, yeah, I mean, our proportion of EVs in the second half was about 70%, versus the first half being about 49%.

Speaker #4: And what we're seeing is the value coming down on average as new makes and models come to the market. So our BEVs under $75,000 went from 80% to 84%.

Rob De Luca: So our BEVs under AUD 75,000 went from 80% to 84%. So we are seeing a shift of higher proportion of those BEVs, which we are financing at lower price points. So that is having a bit of an impact, and we have always expected that to happen. We think that will continue to play through in terms of FY2027. And just to give you a bit of a sense, the year before that was 72%, were less than 75%. So it has moved quite a lot in terms of the last 12, 18 months in terms of the number of Chinese makes and models that have come into this marketplace at lower price points. I think for us, the third thing that had a bit of an impact in our yield on the H2 was we reviewed some of our insurance products with our insurer, made some changes there to enhance customer value.

Speaker #4: So we're seeing a shift to a higher proportion of those BEVs, which we're financing, at lower price points. So that's having a bit of an impact.

Speaker #4: And we've always expected that to happen. We think that'll continue to play through in terms of FY27. And just to give you a bit of a sense, the year before that, 72% were less than 75%.

Speaker #4: So it's moved quite a lot in terms of the last 12 to 18 months, in terms of the number of Chinese makes and models that have come into this marketplace at lower price points.

Speaker #4: I think for us, the third thing that had a bit of an impact on our yield in the second half was that we reviewed some of our insurance products with our insurer and made some changes there to enhance customer value.

Rob De Luca: I think for us, the third thing that had a bit of an impact in our yield on the H2 was we reviewed some of our insurance products with our insurer, made some changes there to enhance customer value.

Speaker #4: So, the second half on first half—that was down about 7% in terms of its impact on yield. Overall, our second half on first half yield total was down 4%.

Rob De Luca: So the H2 on H1, that was down about 7% in terms of its impact on yield. Overall, our H2 on H1 yield total was down 4% that you alluded to. It is still up about 7% on FY2023 before obviously the big take-up of EVs when the legislation came out and we had Teslas as the main price point. So overall, we still feel yield is good. But there are some pressures of moving it downward.

Speaker #4: That you alluded to. It's still up about 7% on FY23 before, obviously, the big take-up of EVs when the legislation came out, and we had Teslas as the main price point.

Speaker #4: So overall, we still feel yields are good, but there are some pressures moving them downward.

Speaker #2: Fantastic. And then just one last question from me, just on Ollie. What proportion of your leases are now from that business? I think six months ago you mentioned a number of around 5% of volume.

Phil Chippindale: Okay, thanks. Just last question from me, just on Oly. What proportion of your leases are now from that business? I think six months ago you mentioned a number of around 5% of volume. Just wondering where that is up to now. Clearly, you spoke to the 77% growth, et cetera, but just maybe as a proportion of the total.

Speaker #2: Just wondering where that's up to now. Clearly, you spoke to the 77% growth, etc., but just maybe as a proportion of the total.

Speaker #4: Yeah, it's just around 6%, so it's up a little bit more. Obviously, we had such a strong performance across all of our brands in the second half.

Rob De Luca: Yeah. It is just around 6%, so it is up a little bit more. Obviously, we had such a strong performance across all of our brands in the second half. But really pleased with the performance of Oly. Our mixture is changing quite a lot in that. So half of that is only coming through partnerships and the other half now is coming through SME relationships, which is really good. So we are starting to build a really good SME client base in that platform as well.

Speaker #4: But really pleased with the performance of Ollie. Our mixture is changing quite a lot in that. So, half of that's only coming through partnerships, and the other half now is coming through SME relationships, which is really good.

Speaker #4: So we're starting to build a really good SME client base in that platform as well.

Speaker #2: Okay, great. Thanks for your time. I'll jump back in the queue.

Phil Chippindale: Okay, great. Thanks for your time. I will jump back in the queue.

Speaker #4: Thanks, Phil.

Rob De Luca: Thanks, Phil.

Speaker #1: Thank you. The next question comes from Tim Lawson from Macquarie. Please go ahead.

Operator: Thank you. The next question comes from Tim Lawson from Macquarie. Please go ahead.

Speaker #5: Oh, hey guys. Thanks for taking my questions. Just a couple in terms of the NDI segment. Can you talk about the growth in client numbers and whether you see there's an opportunity there to accelerate that without buying things, that are still going to grow, and getting some operating leverage?

Tim Lawson: Hi, guys. Thanks for taking my questions. Just a couple. In terms of the NDIS segment, can you talk just the growth in client numbers and whether you see there's an opportunity there to accelerate that without buying things, just organic growth and getting some operating leverage? The policy settings are still moving around.

Speaker #5: Obviously, the policy settings are still moving around.

Speaker #4: Yeah, thanks, Tim. Look, it's interesting. Our growth was about 3% for the year, a little bit lower than what we've historically delivered. We are seeing, though, that the agencies are removing participants from the scheme at a higher rate than they historically have.

Rob De Luca: Yeah. Thanks, Tim. Look, it's interesting. Our growth was about 3% for the year, a little bit lower than what we've historically delivered. We are seeing, though, that the agencies are removing participants from the scheme at a higher rate than they historically have. So, almost 70% of our customers that we didn't have in 2026 versus 2025 was because their plans were canceled. They're no longer eligible. So, it's certainly slowing down in customer growth from a participant perspective. That's one factor. I think the second is a little bit of higher compliance that the agency and the NDIS Quality and Safeguards Commission is imposing now. We're expecting a number of plan managers to probably exit the scheme. So there will be opportunities to pick up share as some players exit the market from the higher compliance costs.

Speaker #4: So, almost 70% of our customers that we didn't have in '26 versus '25 was because their plans were canceled or they were no longer eligible.

Speaker #4: So, it's certainly slowing down in customer growth from a participant perspective. That's one factor. I think the second is, obviously, a little bit higher compliance at the agency, and the quality safeguards it's imposing now.

Speaker #4: We're expecting a number of plan managers to probably exit the scheme, so there will be opportunities to pick up share as some players exit the market from the higher compliance costs. And then, thirdly, obviously with some of the reforms that are going to happen and the move to a panel of higher quality plan managers, we see some opportunities.

Rob De Luca: Then thirdly is with some of the reforms that are going to happen and move to a panel of higher quality plan managers, we see some opportunities. They're probably just starting to emerge in terms of opportunities, Tim, and we'll assess those on its merits. Generally try and pick these up without having to pay anything for them as people exit. But there is a little bit of volatility in the market in terms of what's happening in terms of how the agency is managing it and some of the reforms.

Speaker #4: They're probably just starting to emerge in terms of opportunities, Tim, and we'll assess those on their merits. Generally, we try and pick these out without having to pay anything for them as people exit.

Speaker #4: But there is a little bit of volatility in the market in terms of, just obviously, what's happening in terms of how the agencies are managing it and some of the reforms.

Speaker #5: Yeah, so I didn't catch when those compliance hurdles increased. When was that happening?

Tim Lawson: Yeah. Sorry, I did not catch you when that compliance hurdles increase. When was that happening?

Speaker #4: It's been progressively increasing. So, various factors—they brought in some back in late FY25, early FY26 with some of the black-and-white rules.

Rob De Luca: It has been progressively increasing. Various factors. They brought in some back in late FY 2025, early 2026, with some of the black and white rules. As I mentioned in my early remarks, they are challenging and testing a lot more payments now of plan managers as well. So they are going through and verifying those a lot more, and that is putting a lot more scrutiny, and compliance cost to operators.

Speaker #4: And then, as I mentioned in my earlier remarks, they're challenging and testing a lot more payments now of plan managers as well. So they're going through and verifying those a lot more.

Speaker #4: And that's putting a lot more scrutiny and compliance costs on operators.

Speaker #5: Yeah, yeah, okay. Very clear. And just on the outlook comment around the remarketing yield—so the EV versus the ICE—are you trying to flag—you've called out that obviously unit decline versus the exit fees and yields, but are you trying to sort of flag that there's a little bit of a reduced remarketing yield?

Tim Lawson: Yeah. Okay. Very clear. Just on the outlook comment around the remarketing yields of the EV versus the ICE. Are you trying to flag? You have called out obviously unit decline versus the exit fees and yields, but you are trying to sort of flag that there is a little bit of a reduced remarketing yield, because I do not expect there is a lot of EVs in the book and obviously it will be ICE-dominated.

Speaker #5: Because I don't expect there's a lot of EVs in the book, and obviously it'll be ICE dominated.

Speaker #4: Yeah, so exactly right. Our remarketing results in the second half were very different to the first half. First half, it was pretty good. We also had some benefits in our yield that I mentioned, in terms of some early terminations that helped accelerate some of the income in the yield.

Rob De Luca: Yeah. So exactly right. Our remarketing results in the H2 were very different to the H1. H1 was pretty good. We also had some benefits in our yield that I mentioned in terms of some early terminations that helped accelerate some of the income in the yield. In terms of units, certainly down. We are down 9% for the year. We are down actually 20% for the H2 on the H1. The revenue that we kind of generated from those proceeds was down 17% H2 on the H1. So we expect that to play out a little bit more in the H1 of 2027. To your point in terms of EVs in our fleet business, we funded about 7.5% of our units in 2026 were EVs, up from 2.9% in 2025.

Speaker #4: But in terms of units, certainly down. We're down 9% for the year. We're down actually 20% for the second half on the first half.

Speaker #4: And the revenue that we kind of generated from those proceeds was down 17% in the second half compared to the first half. So we expect that to play out a little bit more in the first half of '27.

Speaker #4: To your point, in terms of EVs in our fleet business, we funded about 7% to 7.5% of our units in '26 as EVs, up from 2.9% in '25.

Speaker #4: And the month of July is just shy of 10%. So we're starting to see now our fleet clients make the transition—more hybrids than pure battery electric vehicles.

Rob De Luca: The month of July is about almost just shy of 10%. We are starting to see now our fleet clients make the transition, more hybrids than pure battery electric vehicles.

Speaker #4: So we'll hopefully see a bit of a replacement happening, which will hopefully stimulate some growth for us in terms of units. But at the moment, they've been holding on to their cars a bit longer.

Tim Lawson: Yeah.

Rob De Luca: We will hopefully see a bit of a replacement happening, which will hopefully stimulate some growth for us in terms of units. At the moment, they have been holding on to their cars a bit longer. That has been a cycle we have seen now for a couple of periods. I think that combined with probably the cost of replacements being a little bit higher than what they would have seen a few years back, that is probably just holding them back on the replacements as well.

Speaker #4: So that's been a cycle we've seen now for a couple of periods. And I think that, combined with probably the cost of replacement, has been a little bit higher than what they would have seen a few years back.

Speaker #4: That's probably just holding them back on the replacements as well.

Speaker #5: Yeah, okay. And so, in terms of the contribution from the AMS segment for that second half, I think it's almost $13 million.

Tim Lawson: Yeah, okay. In terms of contribution from the AMS segment, that H2, I think it is like almost AUD 13 million. Are you feeling that sort of a comfortable go forward, or you still think there is more normalization of that remarketing yield to come out of that number?

Speaker #5: Are you feeling that sort of comfortable go-forward, or do you still think there's more normalization of that remarketing yield to come out of that number?

Speaker #4: Yeah. Look, it's a hard one, Tim. As we've probably spoken about plenty of times, we've always had a view that we expected the elevated remarketing values to come down over time.

Rob De Luca: Yeah, look, it is a hard one, Tim. As we have probably spoken plenty of times, we have always had a view that we expected the elevated remarketing values to come down over time. We have seen it probably in the last 6 months more so than we have seen it in the prior periods. I think part of that stimulated by external factors and some of that obviously by how businesses are feeling. In terms of where that is, pre-COVID, this business was kind of generating about AUD 14 million NPATA. We obviously had elevated post that for a few years. We will see a little bit more downside probably on the remarketing values in the H1 of 2027. A bit hard to tell how long that lasts for. They are still delivering us good profits and higher than where they were pre-COVID, but they certainly have come back a bit.

Speaker #4: We've seen it probably in the last six months more so than we'd seen it in the prior periods. I think part of that is stimulated by external factors.

Speaker #4: And some of that, obviously, by how businesses are feeling. In terms of where that is, pre-COVID, this business was kind of generating about $14 million unpadded.

Speaker #4: So we obviously had elevated post that for a few years. We’ll probably see a little bit more downside, probably on the remarketing values in the first half of ’27. It’s a bit hard to tell how long that lasts for, but they are still delivering us good profits and are higher than where they were pre-COVID.

Rob De Luca: We obviously had elevated post that for a few years. We will see a little bit more downside probably on the remarketing values in the H1 of 2027. A bit hard to tell how long that lasts for. They are still delivering us good profits and higher than where they were pre-COVID, but they certainly have come back a bit.

Speaker #4: But they certainly have come back a bit.

Speaker #5: Yeah. And can I just pick up on your comment around the 6% CAGR, sort of long-term growth? I think that's to do with Novated.

Tim Lawson: Yeah. Can I just pick up on your comment around the 6% CAGR sort of long-term growth? I think that is to do with novated. Just how you feel. Obviously, you have seen a bit of a fuel boost. The policy certainly has helped. You have talked about the sort of 84% of vehicles, BEVs now coming below that 70,000 hurdle that obviously is important in the policy going forward from sort of next year. Can you just talk how comfortable you are that that is sort of the right number, even with these policy settings and fuel sort of moving things around a bit?

Speaker #5: Just how you sort of feel obviously, you've sort of got a bit of a fuel boost. The policy certainly has helped. You've talked about the sort of 84% of vehicles BEVs now coming sort of below that sort of 70,000 hurdle that obviously is important in the policy going forward from sort of next year.

Speaker #5: Can you just talk about how comfortable you are that that's sort of the right number, even with these sort of policy settings moving things, and fuels sort of moving things around a bit?

Speaker #4: Yeah. I'm not saying that 6% is the number to take as a forward estimate. I'm just saying our long-term average across this business has had 6% as a CAGR.

Rob De Luca: Yeah. I am not saying that 6% is the number to take as a forward estimate. I am just saying our long-term average across this business has had 6% as a CAGR. Some periods higher than others. Obviously much lower during COVID period. A bit of a boom straight afterwards. We would say at the moment there are favorable characteristics and settings for positive growth in novated leasing. The legislation is one of those things. The greater awareness of novated leasing and the benefits it provides, obviously our Oly platform and entering a new market. So I think all of those things are positive for us in terms of we feel good about the outlook in terms of sales growth. I just pointed out that July was 8%. It feels more like kind of where we expected things to be before the fuel crisis.

Speaker #4: Some periods were higher than others—obviously, much lower during the COVID period, and a bit of a boom straight afterwards. We'd say, at the moment, there are favorable characteristics and settings for positive growth in Novated Leasing.

Speaker #4: The legislation is one of those things. The greater awareness of novated leasing and the benefits it provides, obviously our early platform, and entering a new market.

Speaker #4: So I think all of those things are positive for us in terms of—we feel good about the outlook, in terms of sales growth.

Speaker #4: And I just pointed out that July was 8%. It feels more like kind of where we expected things to be before the fuel crisis.

Speaker #5: Yeah, yeah. Okay. And just last question from me, just more sort of a corporate structure question. With the activity we're seeing with fleet partners, and with the sort of structural change in NDIS, are you still feeling that the sort of three segments are all go-forward segments to the Group?

Tim Lawson: Yeah. Okay, and just the last question from me. Just more a sort of corporate structure question. With the activity we are seeing with FleetPartners, and with the sort of structural change in NDIS, are you still feeling that the sort of three segments are sort of all go forward segments to the group?

Speaker #4: Oh, look. I mean, we obviously don't comment on corporate M&A activity, but we're pleased with the various contributions of each of the businesses. Obviously, there are different factors affecting each of them, as I've outlined today.

Rob De Luca: Oh, look, we obviously do not comment on corporate M&A activity. But we are pleased with the various contributions of each of the businesses. Obviously different factors affecting each of them, as I have outlined today. At this stage, we feel comfortable about the business kind of settings, how we kind of think about the future and segmentation and how we think about the business. Obviously, we will let the market know if we make any changes to it. DSS, as we have outlined, has got some elements of reforms that it is kind of faced now over the last couple of years, and we just continue to assess those on its merits to make decisions about what that means for the business. At this stage, we do not have enough certainty of what the panel would look like and the economics of it.

Speaker #4: At this stage, we feel comfortable about the business, kind of settings, how we kind of think about the future and segmentation, and how we think about the business.

Speaker #4: Obviously, we'll let the market know if we make any changes to it. PSS, as we outlined, has got some elements of reforms that it's kind of faced now over the last couple of years, and we just continue to assess those on its merits to make decisions about what that means for the business. At this stage, we don't have enough certainty of what the panel would look like and the economics of it.

Speaker #4: Obviously, the asset management business have always called out that we were very cautious in terms of the elevated remarketing position of that business, and therefore, doing any M&A activity when that's at inflated rates wouldn't be the best use of shareholder capital.

Rob De Luca: Obviously, the Asset Management business have always called out that we were very cautious in terms of the elevated remarketing position of that business and therefore doing any M&A activity when that's at inflated rates wouldn't be the best use of shareholder capital. We're starting to see that kind of logic play out, why we've kind of made that decision. How that plays out in the future, though we still see some really good synergies between our Asset Management and our GRS business in terms of procurement benefits and joint client opportunities.

Speaker #4: We're starting to see that kind of logic play out and why we've kind of made that decision. How that plays out in the future, though, we still see some really good synergies between our Asset Management and our GRS business in terms of procurement benefits and joint client opportunities.

Speaker #5: Okay, thanks for taking my questions.

Tim Lawson: Okay. Thanks for taking my questions.

Speaker #4: Thanks.

Speaker #5: Thank you. The next question

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

Speaker #2: Our next question comes from Andrew Hodge from Countercourt Genuity. Please go ahead.

Speaker #1: Good morning, everyone. My questions have already been asked and answered. Thank you.

Andrew Hodge: Good morning, everyone. My questions have been asked and answered. Thank you.

Speaker #4: Thanks, Andrew.

Rob De Luca: Thanks, Andrew.

Speaker #2: Thank you. The next question comes from Chenny Wang from Morgan Stanley. Please go ahead.

Operator: Thank you. The next question comes from Chenny Wang from Morgan Stanley. Please go ahead.

Speaker #1: Oh, morning, guys. Thanks for taking my questions. Firstly, maybe just in terms of warehouse impact, first half versus second half. Obviously, in the second half, you guys saw a pretty substantial tailwind on the Novated side.

Chenny Wang: Morning, guys. Thanks for taking my questions. Firstly, maybe just in terms of warehouse impact, H1 versus H2. Obviously, the H2 you guys saw, a pretty substantial tailwind on a novated side. So, it would have obscured some of the H1, H2. But just wanted to see if there's any more color you guys can give us on that dynamic. Noting, I think, FY 2025, H1 2026, you guys talked to the H1 being lower, H2 being higher on that front. So just wanted to see whether that has played out.

Speaker #1: So you would have obscured some of the first half, second half. But just wanted to see if there's any more color you guys can give us on that dynamic, noting I think FY25 first half, '26, you guys talked to the first half being lower, second half being higher on that front.

Speaker #1: So, just wanted to see whether that has played out.

Speaker #5: Yeah. Hi, Chenny. Great question. And pleasing to say, yes, that has turned out that way. So, first half, marginally below by a couple of hundred thousand versus contribution—versus the second half, it was a plus $1.6 million positive contribution from the warehouse or OBF.

Paul Varro: Yeah. Hi, Chenni. Great question and pleasing to say yes, that has turned out that way. So H1 marginally below by a couple of hundred thousand versus contribution, versus the H2, it was a plus AUD 1.6 million positive contribution from the warehouse or OBF. So that was pretty much exactly in line with where we predicted it to be. Obviously, we had a good surge in our sales in the H2. So where we can, we try and keep that ratio relatively proportionate where we can, but sometimes it can get slightly out of whack when there's a number of units coming through quickly.

Speaker #5: So that was pretty much exactly in line with where we predicted it to be. Obviously, we had a good surge in our sales in the second half, so where we can, we try and keep that ratio relatively proportionate where we can, but sometimes it can get slightly out of whack when there's a number of units coming through quickly.

Speaker #1: Got it. And then, just — I mean, in the past, you guys talked about FY27 seeing a tailwind from the warehouse. Again, probably a bit harder to discern, given broader tailwinds.

Chenny Wang: Got it. Just, in the past you guys talked about FY 2027 seeing a tailwind from the warehouse.

Paul Varro: Yeah

Chenny Wang: Probably a bit harder to discern given a broader tailwind, but that trajectory is still on track, I guess, I suppose.

Speaker #1: But that trajectory is still on track, I guess—I suppose.

Speaker #5: Yep, still on track. I mean, if you take a step back, the contribution from Onboard will start to slow as receivables growth slows.

Paul Varro: Yep, still on track. If you take a step back, the contribution from Onboard Finance will start to slow as the receivables growth slows. To give you a sense of it, in the first couple of years, FY 2024 to 2025, receivables grew 54%. This year you saw in the financials it is 16%. Going forward it will be high single digit, low double digit growth for receivables in the outlook. Therefore, that contribution or the speed of the contribution will moderate somewhat, but we still expect it to be accretive in the outer years relative to the P&A model. Obviously, it also provides a good annuity, and recurring revenue for us as well.

Speaker #5: So, to give you a sense of it, in the first couple of years—FY24 to '25—receivables grew 54%. This year, as you saw in the financials, it's 16%.

Speaker #5: Going forward, it'll be high single-digit to low double-digit growth for receivables in the outlook. So, therefore, that contribution or the speed of the contribution will moderate somewhat, but we still expect it to be accretive.

Speaker #5: In the outer years, relative to the P&A model. Obviously, it also provides a good annuity and recurring revenue for us as well.

Speaker #1: Got it. And then, I may have missed this, so my apologies, but did you guys carry a backlog exiting FY26 on the GRS side?

Chenny Wang: Got it. Then, I may have missed this, so my apologies. Did you guys carry a backlog exiting FY 2026 on the GRS side?

Speaker #4: Yeah. Yeah, we did. Chenny, we didn't kind of talk to her because, obviously, as we kind of ended '25 and went into '26, the delivery times of vehicles were all within the month.

Rob De Luca: Yeah, we did, Chenni. We did not kind of talk to it because obviously as we kind of ended 2025, went into 2026, the delivery times of vehicles were all within the month. Delivery times, as you would know, picked up a bit in the H2 off the back of the supply chain challenges. We are seeing at the moment that our order book is more like delivery times of about just over a month, where previously it was about 20 days. So there is a little bit of an order book in our portfolio at the moment, but it has been kind of less than about a month's worth.

Speaker #4: Delivery times, as you would know, picked up a bit in the second half off the back of the supply chain challenges. We're seeing at the moment that our order book is more like delivery times of just over a month, where previously it was about 20 days.

Speaker #4: So, there’s a little bit of an order book in our portfolio at the moment, but it’s been kind of less than about a month's worth.

Speaker #1: Got it. And then, just in terms of GRS margins for the second half, I guess when I kind of look at margins, they're half-on-half over the past few years.

Chenny Wang: Got it. Then just in terms of GRS margins for the H2. I guess when I look at margins there H1 on H2 over the past few years, it has kind of trended both up and down. But H2 saw about 300 basis points lift H1 on H2. That 44%, if I got my maths correct, I may not have, but that 44%, is that a good level going forward? Especially given some of the one-off costs so to speak, have now come out of the business.

Speaker #1: It has kind of trended both up and down. But in the second half, we saw about a 300 basis point lift half on half. That 44%—if I got my maths correct, I may not have—but that 44%, is that a good level going forward?

Speaker #1: Especially given that some of the one-off costs, so to speak, have now come out of the business?

Speaker #4: Yeah. I mean, we always have a much stronger second half than first half in terms of our seasonality across our business. So at our MMS level, just think about it, obviously we take wage increases from 1 July. A large portion of our GRS and PSS business have got exposure to the Fair Work Commission.

Rob De Luca: Yeah, I mean, we always have a much stronger H2 than H1 in terms of our seasonality across our business. So MMS level, just think about it, obviously, we take wage increases from 1 July. Large portion of our GRS and PSS business have got exposure to Fair Work Commission. That is up 4.75% for FY27. So we start with a higher cost base, and then we kind of generally deliver benefits in productivity over time. We also have in the H2, generally a little bit more positivity in terms of 30 June sales innovated, FBT year end 31 March. So those things always help our H2. So if you look over history, we kind of generally have a really good H2, comes back a bit in the H1, then builds up again into the H2.

Speaker #4: That's up 4.75% for FY27. So, we start with a high cost base, and then we generally deliver benefits and productivity over time.

Speaker #4: We also have, in the second half, generally a little bit more positivity in terms of 30 June sales in Novated, the FBT year, and 31 March.

Speaker #4: So those things always help our second half. So if you look over history, we generally have a really good second half, come back a bit in the first half, then build up again into the second half.

Speaker #4: I've always sort of said this business is a 40%+ margin business, and that's what we try to continue to deliver on each half.

Rob De Luca: I have always sort of said, this business is a 40% plus margin business, and that is what we try to kind of continue to deliver on each half. Sometimes it is a little bit up or down around that, depending on different factors.

Speaker #4: Sometimes, it's a little bit up or down around that, depending on different factors.

Speaker #1: Got it. And then just one last one: any large renewals or tenders for you guys over the next year that we should be aware of?

Chenny Wang: Got it. Then just one last one. Any large renewals or tenders for you guys over the next year that we should be aware of?

Speaker #4: Not in terms of major existing client renewals. I think, for all our largest ones, we've kind of been through a bit of a cycle. So I think over the next short period, in '27, FY27, not so much.

Rob De Luca: Not in terms of major existing clients renewals. I think, all our largest ones, we have kind of been through a bit of a cycle. So I think, over the next short period in FY27, not so much. We have got quite a few opportunities we are constantly tendering for over the next period and hopefully we will see some success out of those in FY27.

Speaker #4: We've got quite a few opportunities we're constantly tendering for over the next period, and hopefully, we'll see some success out of those in FY27.

Speaker #1: Awesome. Thanks, guys. That’s it from me.

Chenny Wang: Awesome. Thanks, guys. That is it from me.

Speaker #4: Thanks, Chenny.

Rob De Luca: Thanks, Chennis.

Speaker #2: Thank you. Once again, to ask a question, please press star one on your phone. The next question comes from Hayden Nicholson from Bell Potter.

Operator: Thank you once again. To ask a question, please press *1 on your phone. The next question comes from Hayden Nicholson from Bell Potter. Please go ahead.

Speaker #2: Please go ahead.

Speaker #5: Hey guys, just had one question, going off one of Chenny's. Just wanted to come to the operating expense walk on slide 14. You mentioned there, Rob, that second half implied up 4.7%.

Hayden Nicholson: Hey, guys. Just had one question going off one of Chenni's. Just wanted to come to the operating expense walk on slide 14. Mentioned it there, Rob, that H2 implied up 4.7%. Some of those things I guess are offsetting the deck talks around your productivity and improvements that you are making, but it is getting offset particularly in the H2. What deliverables do you have coming into FY27? How do we actually get to, in the outlook statement, you are talking to productivity gains. Because I kind of feel like you did good volumes in GRS and that is just waterfall down to the EBITDA line to give you a good number.

Speaker #5: So some of those things, I guess, are offsetting the dec talks around your productivity and improvements that you're making. But it's getting offset, particularly in the second half.

Speaker #5: What deliverables do you have coming into FY27? And then, how do we actually get to—in the outlook statement, you're talking to productivity gains—because I kind of feel like you did good volumes in GRS, and that's just waterfalling down to the EBITDA line to give you a good number.

Speaker #4: Yeah, thanks, Hayden. Look, we’ve always got initiatives across the business on our strategy to drive productivity benefits, and I think our last few years—three, four years—have proven that in terms of our results.

Rob De Luca: Yeah. Thanks, Hayden. Look, we always got initiatives across the business on our strategy to drive productivity benefits. I think, our last few years, three, four years has been proven that in terms of our results. You can see there in the productivity bar, that is obviously alluded to 7.5. The H1 of that was 2.7, the H2 was 4.8. So we always get a bit more momentum in the H2 as we deliver on some of the outcomes from the various initiatives. As Paul alluded to, we implemented some changes around BPO in the period, which we expect to get some annualized benefits.

Speaker #4: You can see there in the productivity bar—that's obviously alluded to $7.5; the first half of that was $2.7, the second half was $4.8.

Speaker #4: So, we always get a bit more momentum in the second half as we deliver on some of the outcomes from the various initiatives. As Paul alluded to, we implemented some changes around BPO in the period, which we expect to get some annualized benefits.

Speaker #4: In FY27, we continue to digitize all of our platforms from a payments perspective in PSS and in terms of how we manage claims in GRS, which I alluded to in my strategy update this morning.

Rob De Luca: In FY27, we continue to digitize all of our platforms from a payments perspective in PSS and in terms of how we manage claims in GRS, which I alluded to in my strategy update this morning, and they come through. Then obviously as we continue to enhance the digital experience for our customers in using our apps, the self-service increases. The use of AI is reducing call volumes into our team and reducing average handling times. So we have got a number of initiatives that we think that will continue to deliver ongoing productivity gains in the business. As I mentioned to Chenni's question, though, we always have a bit of a difference between the H2 and the H1.

Speaker #4: And they come through. And then, obviously, as we continue to enhance the digital experience for our customers in using our apps, self-service increases. The use of AI is reducing call volumes into our team and reducing average handling times.

Speaker #4: So we've got a number of initiatives that we think will continue to deliver ongoing productivity gains in the business. As I mentioned in Chenny's question, though, we always have a bit of a difference between the second half and the first half.

Speaker #4: So if you look at our last year in FY25, we kind of finished the year in the second half of '25 and then came into '26.

Rob De Luca: If you look at our last year in FY25, we kind of finished the year in the H2 2025 and then came into 2026 and our underlying profit for the group was down 6% the H1 off the back of the strong H2 the year before. That is a fairly normal kind of experience for us in terms of seasonality. But we are always looking at opportunities to drive productivity benefits and deliver really good outcomes for customers.

Speaker #4: And our underlying profit for the group was down 6% in the first half, off the back of the strong second half the year before. That's a fairly normal kind of experience for us in terms of seasonality.

Speaker #4: But we're always looking at opportunities to drive productivity benefits and deliver really good outcomes for customers.

Speaker #5: Got it. Just as a quick follow-up, that sales bucket, I think, is a new individual callout versus the first half of '26. I'm just interested—is that adding heads for investment, or is that to go along with the sales?

Hayden Nicholson: Got it. Just as a quick follow-up, that sales bucket, I think is a new individual call-out versus the H1 2026. Just interested, is that adding heads for investment or is that to go along with the sales? Does it run rate from here, I guess is what I am getting at.

Speaker #5: Does it run right from here? I guess that's what I'm getting at.

Speaker #4: Yeah. I mean, on that walk, you can see there, there's a $4.4 million increase in investment in sales capability in the organization. A large portion of that was in the second half.

Rob De Luca: Yeah. I mean, on that walk you can see there is AUD 4 million increase in investment in sales capability in the organization. A large portion of that was the H2, so that will carry forward into certainly an annualized impact of that largely in the H1. That is novated salespeople, it is industry experts and specialists, investments in people supporting our broad distribution partnerships.

Speaker #4: So that'll carry forward into, certainly, an annualized impact of that, largely in the first half. That's novated salespeople, it's industry experts and specialists, and investments in people supporting our broad distribution partnerships.

Speaker #5: Okay. Got it. Thanks.

Hayden Nicholson: Okay, got it. Thanks.

Speaker #4: Thanks, Hayden.

Rob De Luca: Thanks, Hayden.

Speaker #2: Thank you. At this time, we're showing no further questions. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: Thank you. At this time, we are showing no further questions. That does conclude our conference for today. Thank you for participating. You may now disconnect.