Okay. Well, welcome to the earnings call of GUD's results for the 12 months ended 30 June 2021. I'm Graeme Whickman, GUD's CEO and Managing Director, and I'm here with Martin Fraser, the company's CFO. As a matter of housekeeping, we'll have time at the end of the call for questions and discussion, please hold your questions until then. A recording of this call, along with the presentation material, will be available later today on GUD's website. We'll start the call by running through some key messages and the financial overview. I'll speak to ESG, followed by some commentary on both our Automotive and Water businesses. I'll then hand over to Martin. He'll cover the financial results in more detail, then we'll conclude with the outlook for the current financial year before Q&A. In the material, we do touch on the COVID impact to our businesses. It's clear in our results today and the other communications, such as our Appendix 4E, that we have been very fortunate in relative terms. We do, however, recognize there are many who continue to be profoundly affected. Our thoughts and best wishes go out to those people and businesses, particularly in Queensland and New South Wales at the moment. I'd like to say thanks to our employees who worked pretty hard through this FY 2021 period in such challenging circumstance, and really want to recognize our leadership team who led the businesses in such a positive and deliberate manner. For clarity's sake today, in our webcast and in our released information, we'll be speaking about our statutory reported results, which will be on a post-AASB 16 basis for both FY 2021 and the PCP. There are also a pre-AASB slide in the appendix of the presentation for those who may be interested in that view. Okay. Well, let's turn to Slide 3. FY 2021 was one heck of a year in many ways. Our sales were really strong. The underlying EBIT was just above our guidance, and we achieved an all-time operational record result, actually. There was strong end-user demand that reflected the resilience, I think, of the auto aftermarket. Our recent auto acquisitions have been integrating nicely. Their performance, those acquisitions, that is, are certainly in line with our expectations. We're certainly keen on further opportunities in terms of acquisition. We did experience pressures in the supply chain, and certainly, we've been encountering inflationary challenges. We have plans in place to mitigate, and again, we flagged that at the half year. The existing BUs in Water and Auto continue to work through their core and growth work stream, so no slowing down there. All said, we remain confident, I think, in the business' position and positioning. Our eyes are also firmly fixed on the COVID uncertainties. On Slide 4, certainly through the year, we provided profit guidance, and that was after the 2020 AGM, and we updated it again at the half year result. It's pleasing to note that the full-year result was, as mentioned, a record for GUD. Slightly ahead of guidance at both the underlying EBITDA and also cash conversion levels. The overall revenue and underlying EBITDA growth achieved in the year was compelling for both the existing and the new businesses, and those acquisitions are again performing well in line with our expectation. We delivered revenue growth of just over 27%, with the organic component in terms of growth was about 15.2%, taking our revenue to just over AUD 557 million. Our revenue certainly benefited from some COVID-19 recovery in Q1, but that pattern demand was seen across much of the year, so it continued. Our underlying EBIT was up 25 and a bit percent to AUD 101.2 million. If we exclude the contribution from the acquisitions, the organic underlying EBITDA was still up just over 17% to AUD 94.5 million. This enabled full-year dividends nearly 2% above the pre-COVID-19 levels of FY 2019, in spite of the expanded capital base following the year's capital raise and the acquisitions only making a part-year contribution. The final dividend to our shareholders of AUD 0.32 is up AUD 0.20, which reflects a full-year payout of AUD 0.57 per share and approximately about 84% of underlying NPAT. On Slide 5, we take a quick look at the performance of the half-over-half, so H2 versus H1. In H2 across the group against prior comparable period, we reported a 45% revenue increase and an underlying EBITDA growth of 35%. Of course, the acquisitions played a part in this with just over AUD 52 million. If you strip this out, the revenue still grew by circa 20% and underlying EBITDA about 17%. The H2 over H1 margin did drop, and probably the most appropriate comparison would be the organic underlying EBIT percentage of up 3 percentage points, which was expected, and the flow-through of higher operating costs, which we had flagged at the half year with a number of moderating actions that will carry into FY 2022. Before we go into more detail on the Automotive and Water segments, I wanted to touch on the subject of ESG. GUD prides itself on some of the metrics it achieves in the areas of employee satisfaction and safety. We strive to operate as a top quartile company, and in these two areas mentioned, we certainly occupy that ground. We have been working hard to improve areas such as diversity, our ethical sourcing, and the business reliance on non-internal combustion engines, so ICE revenues, all of which improved year-over-year. We do, however, have a greater ambition, both at the board and executive levels, to broaden our view and an ultimate vision on the sustainability of our business and the impact we have on the world around us, whether in the way we operate or the products and services we provide. To that end, we've recently kicked off a multi-year effort to build a better foundation for shareholder returns sustainably. There are three phases over 24 months that have already kicked off with a materiality assessment with our key external stakeholders, that will help us shape our internal thoughts. The second phase of future strategy and targets, then the third phase will be the ongoing measurement of those targets. I should also point out that from FY 2022, we will actually have a part of the KMP and senior executive conversation linked to select ESG. There's more to come, and we will update our stakeholders periodically on the progress of what I've just laid out. Taking a closer look at our automotive segment results on slide 7. The revenue was up just over 34%, net of acquisitions, that was 18.2%, so at the organic level. The demand remained robust from H1 into Q3 and in Q4, and was off the back of strong end user activity. Auto underlying EBIT was a record for GUD, whether you look at it at total or just at organic levels. The underlying EBIT margin dropped due to acquisition dilution. At the organic levels, it was down about 10 basis points. The H2 versus H1 slide up next, talks to some of the tough cost pressures that rolled into the equation. It wasn't just the cost pressures related to the logistics and freight, it was also the level of effort to maintain supply of inventory. I'm pleased to report we've been successful in that particular endeavor. It should not be a surprise to our shareholders, as the resultant high inventory carry was well flagged as a deliberate strategy to provide what essentially is a buffer to overcome any issues, and also to capitalize on grabbing maybe a little market share here and there. Similarly, we flagged at the half year expectation of other cost pressures in addition to freight and logistics, such as supply cost ups and domestic cost inflation. These have all played or are indeed playing out as largely predicted. As part of our mitigation plan, the FY 2022 price rises have already been announced, we also might need to pull the trigger on further margin management actions as we monitor our FX position. I'd like to give a quick update on the half-over-half, I mentioned that previously, as we turn to slide 8. The auto H2 revenue against PCP was up just over 57%, acquisitions contributing about AUD 52 million. However, the story was also strong with the existing businesses who were up 23%. Organic underlying EBITDA ex the subsidies, so JobKeeper, was up 23% versus PCP. However, cutting to the chase and as flagged at the half-year, it dropped. Specifically half-over-half it dropped by about AUD 6.8 million in terms of EBITDA dollars. This was expected and was driven by the supply chain logistics costs peaking in H2. Some of our FX hedging profile and the cadence of price rises. Perhaps that gives you a tiny bit more color in terms of the resulting margin delta that's on the slide. Moving to slide 9, I would like to quickly update some important key industry dynamics. Car pack growth in the calendar year 2020 continued in terms of that growth, reached just over 19 million units. That's forecast to grow to over 20 million units by 2025. Of course, we know our addressable market is the five-year plus vehicles, which has also grown in the calendar year 2020 to just under 14.5 million units. That's also forecast to grow beyond actually 16 million units by 2025. Quite an encouraging trend. That's not to say that some of our businesses aren't picking up revenue in the 0 to five-year car park. Perhaps the new legislation, which was passed into law in 2021 on the right to repair, might also shift that dynamic a little in the future. Okay. Well, of further interest is the data on slide 10. Firstly, we are seeing an increase in the average fleet age, which is forecast to continue. With the COVID impact flowing through, it might also mean less cars will be scrapped. That fleet age might even go higher than shown on the slide. The other trend that is increasing is the sales of SUVs and pickups, which is now combining to be about 75% of the total sales. Of course, they all flow into the car park, which over time remains certainly a net positive for GUD in both existing and newly acquired businesses, because they both over-index in SUVs and pickups and serving those particular segments. On slide 11, you can see the well-documented increase in the year-to-date calendar 2021 sales, with increases of upwards of 46% in the last quarter which is pretty strong. This is also useful as we do have some exposure to revenue driven by the new vehicle sales, particularly SUVs and pickups. If you want to sort of drill down and detail the hybrid and EV sales data, well, the growth is large in percentage terms but low in volume terms. It's sort of less than 1% of all sales. Whilst the current forecasts expect about three EVs per 100 new vehicles sold and about 18 hybrids, which obviously have powertrains that are ICE related, per 100 new vehicles sold, we believe that we're going to be well prepared to embrace that growth. Okay. I'll probably turn to slide 12 to talk about the resilience or reliance, I should say, on ICE revenue. On slide 12, you can see where we give you a quick update as to how we finished FY 2021, where we now have only 40% of our revenue relying on ICE, so combustion engines, and that continues the positive trajectory we've set ourselves over recent years. The next two slides speak to the acquisitions completed in FY 2021. I won't go into too much detail there. On slide 13, the acquisition of the ACAD group, which we now call G4CVA, has progressed well. Really importantly here, the update centers on the integration effort, which is largely complete. We've utilized a dedicated integration leader. That's a first for GUD. We positioned the Auto Elect business, AE4A, which was part of G4. We've put that into the BWI, which was part of the plan really right from the get-go in terms of the due diligence stages. No changes in terms of what we flagged for future CapEx and the business performance of the G4CVA is in line with the expectations we had at the time of acquisition. On slide 14, same thematic really continues. ACS, Australian Clutch Services, that integration has gone very well. Part of the newly formed Friction Group along with DBA Disc Brakes. Encouraging the business performance after four months is actually ahead of our expectations. All in all, we're feeling very positive about the two recent acquisitions. Moving on to our existing businesses on slide 15. Ryco had a very strong revenue growth. They furthered their product development outcomes, we were proud of the AFR Awards they received, both of them, which is a great indication of the quality of that business. Wesfil has strong growth. That enduring brand proposition around value-orientated products worked very well along with their outstanding customer service. IMG delivered exceptional growth, their repair and remanufacturing demand hit record level of jobs per day, that repeated throughout subsequent months all the way through FY 2021. The team set up their first repair operation in New South Wales, we're looking at other locations which are all under review. The IMG team also launched the hybrid battery refurbishment program. Which, by the way, was quite a well-attended press launch heralding what we think is an emerging future revenue stream. Moving to slide 16. The BWI team really drove growth in the typical channels of auto elec in both trade and retail channels. They also enjoyed a really strong revenue lift in their OEM channels such as caravan and truck and trailer. We're feeling very positive on BWI's prospects. As I mentioned, they welcomed AE4A into the group. They delivered a very strong New Zealand result, and to cap it off, won another AFR Innovation Award, which is really quite important given the product development push the team have been on for the last 24 months or so. Gaskets delivered strong growth, and even though they were undergoing a massive transformation plan as they relocated the total operation to Ryco facility. That's moved about 40 kilometers down the road and involved quite a lot of effort. The growth was well-received. Then finally, Disc Brakes Australia had strong growth in both domestic and export markets. Although the export markets were probably a little bit choppy, actually ended up growing at a stronger rate than domestic. The team have actually recently, very recently, added more export markets, and the strategy concentrating on brand line extensions spawned another product range with the first-ever DBA Disc Brake pad program in FY 2021. Okay. Let's move to the water results on slide 17. Davey's revenue increased for the full year by just a smidgen under 6%. The export markets, as we've reported earlier, were heavily disrupted throughout the year, particularly the Pacific and Indian Ocean resorts and certainly the Middle East. The European market went into essentially a hiatus and then showed signs of life in Q4, although our product availability was certainly constrained at that point. The demand in Australia and New Zealand actually continued into H2. The modular water treatment revenue was really quite low as customers deferred and continued to defer their expenditure. The EBITDA dropped by circa AUD 4 million versus PCP, and this is reflected in the margins on the slide as well. The story was all about the manufacturing challenges experienced through the year with the lockdowns and other COVID operating constraints that resulted in significant idling of the factory, leading to significant factory recovery issues, and we covered some of that up in the half year. Additionally, we couldn't produce non-essential products through parts of the lockdown, which also left us with a pretty tough and constrained inventory profile. When we saw some of the export demand pick up in H2, we ended up having to drive through with some penalty labor rates due to the H1 manufacturing issues, and so we found that challenging. At the same time, we further eroded margin by shipping many of those products to the export markets using some pretty costly airfreight costs. Now, we did this with our eyes wide open to ensure that we maintain the European customer relationship and really access to what is an important future market. On a positive note, in quarter four, we welcomed a new CEO to Davey. Valentina Tripp started with Davey, coming from recently running Murray River Organics. Now, Val arrives with a wealth of senior leadership experience, has deep competency in operational excellence, and also strategy transformations from her past KPMG consultant days. I'm personally excited to have Val on board and leading the Davey business. Turning to slide 18 and a quick look at Davey from a H over H point of view. Revenue moved ahead over H1 by about 7%. This is on the back of Australia and New Zealand, more traditional pump products, certainly not modular water treatment, and then the aforementioned European pool sales. The underlying EBITDA performance did lift versus H1. The elevated operating costs to start to get our inventory profile sorted and the prohibitive freight and logistics muted any meaningful pull-through to the underlying EBITDA. Let's move over to the key financial information. Martin, over to you. Thank you, Graeme, and good morning, ladies and gentlemen. For those of you who are new to Amotiv, my name's Martin Fraser, and I'm the chief financial officer. It's my pleasure to take you through an overview of our financial position. I'll start on page 20, which contains the key profit and loss measures. Graeme's done most of my job for me today already. I will not repeat his remarks word for word, but will rather highlight a few points to help understanding. First, I want to highlight the contribution of the acquisitions, which collectively added AUD 52.6 million to revenue and AUD 6.7 million to underlying EBITDA. More granular detail in respect of the two acquisitions is in the slides Graeme showed earlier. We're seeing depreciation step up with the additional businesses now contributing to the depreciation number and a fall in non-operating items, which I'll cover shortly. Net finance cost was broadly consistent with the prior year and included the facility cost for a short-term AUD 22.5 million line, which was taken as part of our COVID-19 defense and offense plan. We weren't using that facility towards the end of the year. Facilities do have significant flag fall costs, and we felt the time is right to let go of those facilities. Nonetheless, we're very confident our financiers will step forward, if we need further capital, and I'll touch on that later. Nonetheless, the great leverage from all of the sales growth we saw before and Graeme spoke to is evident at the reported net profit line, which is up 40% on the prior year. The final dividend, AUD 0.32 per share, lifts the full year to AUD 0.57 and gives a rise of 54% over the prior year, representing a payout of 84% of underlying net profit after tax. Also reflects the expanded capital base following this year's successful equity raise. I will now take you to slide 21, please. Here we can see the cost associated with the final moves to close manufacturing at AAG and integrate the warehouse and back office functions into the Ryco business, which was completed in the fourth quarter of FY 2021. A small restructuring occurred at Davey. At the group level, we also incurred costs associated with the completed portfolio acquisitions and transactions. Moving on to Slide 22, we can see the net working capital increased considerably over the prior year, of which AUD 29.4 million related to the net working capital acquired as a result of purchasing G4CVA and ACS. Nonetheless, net working capital grew by AUD 15 million, once the acquisitions are removed. That movement reflects higher debtors as a consequence of the sales growth we have seen and higher inventories to respond to the demand and longer lead times. That said, for the time being, we've been able to cover the increase in inventory with higher creditors, given our high inventory turnover at present. That takes us on to Slide 23, where we can see cash conversion is lower than the prior year, but it's little ahead of what we guided throughout the year. In a year where we had to invest in net working capital for the reasons outlined earlier, Graeme and I are very pleased with the cash conversion result. Slide 24 draws your attention to this year's capital raise of AUD 75.7 million and strong balance sheet ratios. With unused bank facilities of AUD 42.1 million, even after giving back the facilities I mentioned before, and strong financier relationships, we are confident that GUD is very well-placed to debt finance further logical and sizable bolt-on acquisitions. I'll now hand you back to Graeme, who will finish with the trading update and outlook. Okay. Thanks, Martin. On Slide 26, I touch on the current trading conditions, which I guess if you'd asked me in late June, I would have given you somewhat of a different answer. Clearly, the latest lockdowns have impacted July, and now into August. We can see that mobility rates have dropped in late July across Australia, and this is always going to be a factor for GUD. The actual July sales weren't that far away from our expectation and sort of started tapering in the last two weeks of the month and the sort of the first week of August or the first few days of August. That pattern feels very similar to last year in Victoria. No doubt we're going to see some volatility in H1, although we managed through things like that last year. Absent these lockdowns, we also recognize that supply chain is going to be one of our greatest focuses in the next 12 to 24 months. On a positive note, the right of repair legislation was passed in June 2021, and the scheme takes effect in July 2022. This is a great development for the independent repair industry on how it can further serve the complex and growing car park. We're now finishing on FY 2022 outlook on Slide 27. GUD is positive on the underlying structural support for the auto aftermarket. We've got a strong position with that industry. Although the obvious COVID challenge will linger, we still feel positive on the net of the headwinds and tailwinds. Key to the business equation in FY 2022 will be some organic volume growth, coupled with some volume growth from our acquisitions. Cost pressures and freight, a step up in the supply costs, and domestic cost inflation are certainly all at play. In addition, we will want to consider some further investment in our future growth drivers. We've implemented already H1 price rises, and this and the favorable currency will largely absorb by the aforementioned high cost and the investment in future growth drivers. In terms of auto acquisitions, our past sentiment remains. We will continue to work on strategically sound acquisitions. Opportunities still exist, and our desire has certainly not abated. We expect auto performance to improve in FY 2022. We're expecting a positive tempo from our ANZ markets and some of our export markets, and we do expect a moderation in manufacturing inefficiencies and some of those other elevated costs. Given the recent lockdowns, the growing inclusion, and I guess duration of the many states like New South Wales and Queensland, certainly the demand environment is proving to be certainly too dynamic to provide reliable full-year guidance. As we did in FY 2021, we plan to come forward at our AGM in late October with a further update. Okay. Well, that concludes the presentation of the results. I will now hand you over to the moderator, who will coordinate any questions you may have. Over to you, Dean. Thank you very much, Graeme. Folks, just two quick points to make your Q&A session super smooth. If you are connected to the call using the Zoom app, please use the raise hand icon to indicate that you've got a question. It's in the bottom of the screen if you're using the desktop app and in the top of the menu if you are using a mobile device. If you don't see any icons, just wiggle your mouse or tap the screen. If you've dialed in by telephone, please press star nine on your keypad to raise your hand and wait for me to introduce you. I'll then ask you to press star six to speak. Our first question comes from Sam Teeger from Citi. Sam, if you could please unmute yourself and go ahead. Thank you. Hi, Martin. Hi, Graeme. Morning. Can you talk about what impact the current lockdowns are having on your ability to conduct due diligence and execute potential acquisitions? Thanks for the question, Sam. I think probably the answer lies in the same outcomes that we had last year. We were in lockdowns last year, and we still managed to complete what we felt to be thorough and comprehensive due diligence on the businesses that we bought. In some cases, we positioned people into jurisdictions to allow them to actually literally be in the place of the companies that we were purchasing. Look, it doesn't make it easy, that's for sure, but there are creative ways that we've already, I think, evidenced, and we'll continue to go down that path. I'm not feeling overly concerned, Sam, but naturally it's just something we have to take into consideration. Clearly, Sam- When it comes to acquisitions. some of our leaders have to be willing to put themselves through quarantine. There's no getting away from that. Clearly if it's worthwhile acquisition, that's something that we will willingly do and have done before. Sure. When it comes to acquisitions more broadly, at the moment, what's the sweet spot in terms of acquisition size that you're considering? Is there a maximum deal size that you'd want to stay below? Sam, unfortunately, you cut out in the very first sentence. I got everything bar the first thing. Was it the context, something you said? No, he was asking the sweet spot for acquisition. Yeah. I'll play it again. When it comes to acquisitions. Okay, great. Is there a sweet spot in terms of acquisition size that you're looking at here? Yep, sorry, I apologize. I thought there was an important word right at the beginning. I get it. Look, we've always said that we'll consider bolt-on acquisitions, and then potentially a game changer if we felt that that was something that was really compelling and the board was supportive. It's fair to say that there's probably more bolt-on acquisition opportunities than there are game changers. That's how I would phrase it. Sweet spot, bolt-ons, AUD 30 million, AUD 25 million, AUD 30 million, AUD 35 million, AUD 40 million, AUD 50 million, those sorts of revenue organizations. Game changer for us would be AUD 200 million revenue type organization, just to give you some context. Got it, makes sense. What's the average quantum of the FY 2022 price rise that you've announced? Just after that price rise, how are you seeing your pricing comparing with the market broadly across your products? Look, the price rises we put in place, which may well be a first round, who knows how things are going to play out this year, ranges across the business, Sam. In some of the businesses, it's in the mid 2s, all the way up to some businesses, 6s and 7s with a couple of outliers where we're making to order in some of our new businesses, which reach up to 10. I wouldn't give you a homogenous answer, but somewhere in that middle midpoint is probably a fair assumption, and that's 3s and 4s. I think it's fair to say, Sam, also, it's been a climate that's been perhaps a little bit easier or there's been more sympathy from customers around the reason and the need for it. It's been, in many respects, a better climate to get price increases away. They're getting away either in market and agreed or been communicated well accepted, and we're just serving out notice periods. Good acceptance, good traction, pretty quick timing. Got it. Just following on from that, what's the average notice period? What month do they kick in? Look, they range quite differently, Sam. Some a small amount already in market. Most of them will be in the September, October, November period, probably more September, October. Depends on the customer relationship and what amount of time we give notice. Some businesses are already in place because they can literally switch into it. Our business like ECB as an example, we've been able to put that in the market and a couple of other businesses of that nature. It is a bit varied, but the bulk of it is September and October. Great. Thanks, guys. Okay, thanks, Sam. Anna, would you like to unmute yourself? Anna from Goldman. Go ahead, please. Yep, sure. Just checking you guys can hear me okay? Yes, Anna. Excellent. Morning, guys. A couple of questions from me, if I can, please. The first one is on the ACAD business. Just looking at the accounts in business acquisitions, it does look like both sales and EBITDA are a bit short of your expectations at the time of the acquisition. Can you just give some color around what's changed versus the initial communication, please? Yeah, look, I think the answer is yes and no. When we completed the due diligence on that business, we felt the vendor was a little bit ambitious with what they thought they could achieve in terms of sales. We put in place, therefore, a sales earn-out. We felt there was a bit of a difference there. That earn-out has come back in our favor. Broadly speaking, it's pretty close to one of the businesses, which is the motor body business is performing a little bit below our expectation, and that's been largely curtailed because pickup trucks have been down in imported number and the OEMs are directing all of those sales towards retail customers. Corporates have been having an extremely long time. A very difficult time getting them. We're experiencing seven-month lead times on our Ford ranges on our corporate pricing, even though Graeme Whickman used to run Ford. If I want to go into a Ford dealership, I can get one at retail tomorrow. CSM is largely focused on not the individual one and two tradie, but more the fleet customers. That's really been the only sort of constraint. In terms of our own internal expectations, we pretty much expected that, and we built the protection in with the sales earn-out. Now the result's been announced, we'll set the wheels in motion to get that amount of money back from the escrow. Well, the revenue came in within AUD 200,000 of our internal forecast. Yeah Our due diligence approach. Again, we're not here to talk about other companies, but the vendor had a different view. That's why we put it in place. Our DD was based on that revenue position and the E position. That's actually quite comforting to us in some strange way because our DD was pretty smack on. Our DD did anticipate that there would be that issue with the vehicle supply that would impact the CSM business. As you would imagine, we, Graeme, probably had a little bit more insight than most on that. It's pretty much played out as we'd expect, but there you go. Gotcha. That's super helpful. Then just on the auto margins, in the half, and I suppose looking ahead as well, can you possibly, I suppose, give us some color in terms of breakdown of the headwinds or the quantum of the headwinds that you guys are seeing around supply price increases, logistics, et cetera, just the quantum of it? Very happy to, Anna. I just want to emphasize that when we last engaged with everyone and we called out our guidance, people felt that our guidance had been a little conservative and we said, "Absolutely not." We see big significant headwinds coming through in the second half around higher freight. We knew our hedged position, in the second half was a weaker hedge position than the first half, which we called out. If we look at it, the profit was approximately down AUD 10 million. Of that, JobKeeper's nearly AUD 3 million, so you're back to AUD 7 million, and that was largely AUD 4 million of that was higher freight and the balance was the FX impact. Absolutely as predicted. We had a choice at the time, which we set at half year of do we go and pursue and cover that with price rises or not? We intentionally didn't. The reasons behind that at the time, just to give you some confidence as to how we think through these sorts of things. We were sitting there seeing the AUD had appreciated in the last six months, and we at that stage hadn't had all the supplier price pressures for our customers to probably concede a price increase against an appreciating currency. We also felt that we were really well-positioned with some inventory and would achieve a lot more by focusing on market share gains rather than polluting that opportunity by disenfranchising customers with price increases because our GP% was a better uplift than the price, potentially. We wanted to take the opportunity to win market share. We did that. You can see that throughout the year. We felt that we would get a better outcome on prices by tackling it at this time of year because the forces we felt would come into play have come into play. Secondly, you can't go back to the well every five minutes. If we went with price increases in December, it would've diminished our ability to negotiate the ones we just got through. That was an intentional strategy. Graeme and I believe that was right. I think it served us well. It means in the short term, you get a trough on margins. Now to your question on the second element. I've got to be careful here because we're trying to avoid guidance, but I'll try and tease it out for you. Clearly, there is scope for some of that margin erosion to come back in the second half. We've got a much better hedge rate going into FY 2022, as you can see from the accounts in the AUD 0.78. We're a little less covered than last year, so we've still got some to do in the second half on spot. We've got the prices coming through. There is no JobKeeper, unfortunately, and we've got the supplier elements to come through. All in all, we do see quite a bit in dollar terms, quite a bit of that margin erosion dollars-wise coming back. In percentage terms, you're going to have a full year Impact from the new acquisitions, which trade at a lower margin than our legacy businesses. Dollar-wise, we see an opportunity for a lot of that to come back. In percentage terms, you won't see exactly the same outcome. That's absolutely fine, too. We're still going to take some of that and reinvest it for growth. We still see a pretty compelling climate to do that, and we're not going to flinch away from that. Which is why Graeme said that predominantly the driver into next year will be some volume, as well as the acquisitions. Without trying to call out guidance, hopefully, that gives you some confidence and speaks to your question, Anna. Yep. That's super helpful as usual. My last question is on the exit run rate for auto organic sales growth. Just looking at the second half organic growth there versus your trading update for the third quarter. It does look like it has accelerated a little bit in the fourth quarter, if I'm reading it correctly. If I recall, in the PCP, you guys had some de-stocking issues, and therefore, I'm thinking, is that primarily driven by the cycling of a soft PCP there? Thinking ahead in terms of run rate, in July to August, where is that at versus the fourth quarter exit run rate, please? Look, I think you've answered your own question in the first part. We were cycling some pretty interesting months, right? Calendarization of our performance when we look at it internally is quite erratic of sorts, because you're trying to cycle different numbers. Of course, a number of the businesses were affected at different rates and at different times through those months in the prior year. It can actually quite get confusing. That's the first part of the question. The second part is that we were actually pretty satisfied with the way the year ended. Whilst we were still cycling some interesting numbers, we were still feeling pretty positive around the tempo. As we walked into July, as I said earlier on, we had a sort of a positive disposition around our position in the market. That's always going to be caveated by what we've just then experienced in late July and August. Therein lies a very cautious, I guess, a cautionary tale as to how you predict the future, but we were feeling pretty positive. Certainly, July started out in a relatively positive manner. As I said, almost up until the lockdown our daily sales rate, because obviously you might be reminded there's actually one less selling day in July this year. Our daily selling rate, so that makes it a bit easier to compare, was in a pretty reasonable position as to what our expectation was. Again, we're going to see volatility, Anna. Like I said earlier, we managed volatility last year all the way through. Look, my expectation is that similar to Victoria, we saw lockdowns. People came out of lockdown, and we saw a deferral of expenditure, deferral of service, deferral of all manner of things. It's not all doom and gloom. I guess there are a few other things rolling through the situation, though. Obviously the stimulus around JobKeeper doesn't exist this year as well. There may be a little less money in people's accounts. That was something we keep in the back of my mind. We were relatively satisfied with the way July kicked off. Sorry, it's a long answer to your second part of the question. Excellent. Thanks, guys. Thanks very much. Our next question comes from James Ferrier from Wilsons. James, if you could unmute and go ahead, please. Hi, Graeme and Martin. Thanks for your time today. First question there, just following on from Anna's question about the margin outlook going into FY 2022. Martin, from your comments there, am I right to interpret it that perhaps taking the organic auto EBITDA margin in the first half, I think it was 26.6%, that's probably a reasonable starting point when we look to FY 2022, from that point, we consider the impact of the acquisitions? It's probably not a country mile away, we could experience mixed changes through the half there as well. Our different segments do have different GPs. It will remains to be seen. Yes. I think, Martin, one thing we should call out obviously is that 26.5% you've just talked of, James, includes JobKeeper, right? Yep. If you strip that out and look at ex -subsidies, that first half was just a smidgen over AUD 25, right? AUD 25.2. Correct. Sorry, you're right. I think, Martin, you're right and perhaps you want to carry on. No, that's all right, you're right in what you're saying. Parking the acquisitions, because naturally that's going to be dilutive, and we all understand that. We're expecting to try to return some of that margin. It's not going to be easy, as we've already talked about, because we're getting sort of swamped by some of those cost pressures, and they haven't abated. We've got some mitigating actions sitting there as well. It's not like we're going to sit on our hands and simply accept it. Correct. We're not going to return it in six months either, but it'll be over the course of the year as well, James, just to point out the obvious, avoid confusion. Yeah. Makes sense. Yeah, certainly with the timing of your price increases. Yep. Second question around the outlook statement. You talked there about the organic growth rate in the automotive business moderating over time. Can you just sort of elaborate a little bit on the over time comment? In particular, if I think back to previous recent outlook statements, you've talked about sort of a new baseline in sales activity, and certainly some of your customers have talked about the same thing. When you talk about moderating over time, are you talking about the growth rate moderating, or are you talking about the sales line actually probably turning back into negative and regressing back to its longer-term trend? Look, that's a really hard question, and that's why we were, I guess, obscure in that comment, because it's very hard to crystal ball gaze. I think certainly in the next 12 to 24 months, and I've said this before, we probably expect that there should be, on balance, a positive net impact to some of those tailwinds and headwinds that COVID's providing. I don't think they're going away in the short term. Some of that will linger as well, because there'll still be more cars in the car park. I think when we say over time, I think that there's going to be a period of elevated demand that I think we have the potential to enjoy if we do a good job in the market with our customers. I think that that sort of sits there. I think the question you might be, or the comment you might be referring to, is in the past we've sort of said, look, hard to say in any given year what our growth should be. We have differing businesses at different product cycles, different business maturities, but let's say we're looking to try achieve anywhere between 3% and 5% growth, just academically out there for the moment, James. The impact of COVID might give you a bit of an elevated lift. It might be 4% to 6%, it could be 5% to 7%. Don't know exactly, James. I think logic would tell you that when you've got more miles traveled, when you've got a greater car park, when you've got velocity in used cars, then you have a fighting chance to capitalize on that. That, of course, all is caveated by what we're seeing at the moment in New South Wales and Queensland. That's why we're sort of ducking and diving on that one, James, a little because it's hard to forecast that. That's why we say in some of those outlook statements that we still remain positive as we view the market right now. That's helpful color. Thanks, Graeme. Third question's around the ACAD or the G4 business, as you're calling it now. I heard your answer to Anna's question around sales performance relative to expectations, and that makes sense. Relative to PCP, I think it printed AUD 39 million of sales and the PCP was about AUD 43 million of sales. I'm just curious as to that sort of level of performance in an environment that looks incredibly favorable for selling aftermarket accessories for four-wheel drives. Yeah, no, look, I think it is a fair question. A large part of that gap is really that CSM business, which we mentioned before, where they weren't constrained with that in the previous year. Our challenge at G4 is probably, apart from that CSM business and supply of utes in the commercial vehicle market, which still remains constrained. I can understand why the auto companies are doing that. Our major challenge is actually more capacity rather than sales. That's one of the reasons why we called out the CapEx when we did the acquisition, AUD 6.7. We've committed about AUD 1.3 to some new machines. We've upgraded the IT. We've still got more to go. We want to see more work done on the manufacturing strategy, we're convinced we're spending it wisely. Demand is not the constraint there. It will recover over time. CSM will do better as the vehicle supply comes in. We've got also some other initiatives underway there within the business to help it lift. We're still very confident, and it is roughly, as Graeme said, it's pretty much where we'd expect it to be this particular point. I don't know if you want to add anything to that, Graeme? No, that's fine. Thanks, Martin. Last one's what your expectations are for the year ahead around cash conversion, D&A and CapEx for the group? Yeah, no, it's a really good question. It largely depends on what we see in terms of further growth and what will go on there with debtors and whether we keep with the same inventory velocity, which at the moment has been helping us with funding some of the higher inventory. Let's just assume that for the time being continues. I think we're still going to be in the 80s, and because we're expecting a little bit of a step up of capital investment in particular. We've still got some more to do within the G4 group, which we called out. We've got some pretty compelling products coming through. We just signed off a considerable CapEx, in particular in BWI, which will be a world-leading product when it comes out. We're probably going to be I think you'll see we've been recently around about that AUD 6 million CapEx. We could be stepping up towards AUD 10 million this year, which would obviously pull back that cash conversion. That could be, we could be AUD 1 million or AUD 2 million up or down on that number. That will lead into cash conversion. That'll leave us around about that in the 80s. That's a really good foundation for growth, and that will really see those products coming through the year after, but so be it. We're willing to do that. That CapEx, you've just mentioned that lift is part of what we flagged in terms of. Correct parts of those groups anyway, so it shouldn't be a surprise. Yeah. That's why we fully expect we're still going to be in the 80s. I think it'd be too foolhardy to call out a more exact number than that, but I would say the front end of the 80s, not the back end. We'll see how the year plays out. We also want to do a little bit more in Davey reshaping our inventory and moving away from our current approach, which has been more focused on raws and flexible short-term manufacturing to more programmatic against a mid-term sales and operational planning and taking in some of the experiences from this year. I think we'll also see Davey inventory come up in the next year as we transition, and then it'll phase down as we complete that transition. That's why I'm really calling out in the first half of the eighties, James. Thanks, Martin. Very helpful color. Thank you. Our next question comes from Mitchell Sonogan from Macquarie. Go ahead, Mitchell. Morning, Graeme and Martin. Can you hear me? We can hear you, Mitch. Yes. Thanks for taking my questions. Apologies if I did miss it, but I was just hoping you could outline what the increase in your contracted freight costs are, what% increase that was. I think that was being finalized at the end of last financial year. Also the supplier cost increases. I think you previously mentioned somewhere in 3% to 6% as a ballpark figure. Thanks. Yeah, very happy to do so, Mitch. Look, I don't know if you caught it before, but I called out in the second half of FY 2021, approaching AUD 4 million, taking the full year step up in the freight cost to around about AUD 5 million. We see the step up next year being in excess of that. It won't be double, but it'll certainly be somewhat approaching that. I'm not gonna call it out, otherwise I'm gonna call out guidance. It's a bit tricky. We expect that step up to be even more than the AUD 5 million next year and quite a bit more than the AUD 5 million, materially more than AUD 5 million. We've renegotiated our container freight rates. We're in The Mandarin Buying Group. Between us, it's more than 20,000 TEUs. We're seeing that contracted rate go up by approximately 2.5 x. We're also seeing tighter conditions. Whereas you used to be able to book a container on a window of two or three weeks, they're almost requiring you to get the bookings down within a five-day period. If there's a delay in manufacturing for whatever reason or not so much, there's still sometimes difficulty. The manufacturing's on time, one of our difficulties we're still struggling with is getting containers. We'd have supplier in China who's absolutely full to the brim of product he could send us if he could only get containers. The predictability about being able to get containers to port in line with these weekly shipment windows is gonna be the challenge. That's why Graeme said the next 12 to 24 months, while the demand supply equation is in the favor of the shipping companies, this is gonna remain difficult. We're having to put resources onto it to really micromanage to a degree we haven't had to before and try and minimize the% that goes on spot. That's why I'm calling out it's going to be way more than the AUD 5 million step-up of the last year. In terms of supplier pricing, Graeme gave some color in that three to six. There is quite some variability on all of those. That cost to us is going to be circa, approaching or very close to above or below, very close to double digits AUD millions, Mitch. It's, at this point, something that's pretty unavoidable. We're very close to our suppliers, so we in many cases get a chance to look through and see what's happening with their inputs. A lot of those have been agreed and locked away. We want to keep strong working relationships with the suppliers. We want to over-index on their available capacity. They're pretty much agreed. I better stop there, otherwise I'm gonna end up giving you g uidance. Thanks, Martin. Just while I've got you there quickly, just in terms of the administration cost line, that was up at AUD 47.6 million versus AUD 35 million PCP. Yep. Obviously, some things, the acquisition's not in there. Can you maybe just give a bit more detail on that and where that should trend in 2022? Well, there's two elements to that. One is we've got the acquisitions in, they were pretty simplistic with how they map their costs. Proportionally more of their costs go to admin than our legacy businesses. Next couple of years, we'll work with them to get that better. The second element, which gives me absolute delight, is that most of our incentive schemes popped, and they popped at the maximum. Last year, for example, our senior leadership team, none of them got STIs and none of their direct reports got STIs. Across the group, you're approaching AUD 5 million there, and that largely goes on that admin line. Sorry for that variance, but it's a delightful variance because it relates to the volume growth and the GP growth we got out of that. It is also pleasing to be able to see our employees at all levels get some reward for the really hard work they put in the last year, too. Well, I hasten to add as well, the AUD 2.8 million or so of JobKeeper received in the period was removed from any calculations in terms of STIs. It was not a benefit to anybody, just as an aside. Back to you, Mitch. Great. Graeme? Yep. Graeme, quick, just any details you might be able to provide quickly on a state-by-state basis? Obviously, WA has largely avoided lockdowns. Maybe how you're seeing things over there versus more recently locked down New South Wales, Queensland, but also just quickly touch on New Zealand, please. Okay. Again, cutting in and out there, Mitch, but I think I got most of it. I heard W.A., N.Z., and lockdowns, I'm hoping I'm answering the right question. The impact of the lockdowns at the moment, certainly in New South Wales and latterly Queensland, as I said earlier, our July performance on a daily sales rate was going okay. We were in a reasonably positive position. I started to see, there was a 25th, 26th or something like that, it started to come through, and it started to drop away. It got obviously more meaningful in terms of the lockdowns, even in New South Wales. Probably business by business, we've seen probably at the most extreme at the moment, maybe somewhere in the region of 10% to 15%, 12% to 15% probably more accurate, drop in the daily sales rate in some of the businesses. Some other businesses are sort of around 8% to 10%. Again, I made a point earlier on, Mitch, around we're seeing it play out very similarly to Victoria last year, which was our experience also. Through some of those lockdowns, we were seeing somewhere in the region of 10% to 15%, and then it bounced back. A lot of deferral in terms of people coming back, still needing to get their car serviced, still needing to get their car repaired. That's kind of what we're seeing there. Then I'll just ask you to repeat the WA and New Zealand piece, because I'm not sure I'm answering the right question. Yeah, thanks, Graeme. It was just more about seeing how things are tracking over there in WA and New Zealand. Haven't heard much. Okay. Yeah. Probably been a little bit more impacted from tourism still. Yeah, no, I think from a W.A. point of view, we're not really seeing anything I'd call out as unnatural or abnormal. From an N.Z. point of view, actually, N.Z., you'll see in some of my comments in the 4E actually, that N.Z. auto, or N.Z. in general, actually grew a little bit faster rate. I think it was up 37% versus Australia that was slightly lower. Actually, New Zealand did pretty well through FY 2021. I think probably because it was impacted by obviously a more severe lockdown through that period where there was very little revenue. We've seen that continue. Again, caveats around lockdowns, but the market has proven to be resilient in New Zealand over the last three, six or so months. I'll just add to that, Mitch, because we do get feedback from the sales force, speaking to the mechanics. Most of the states have still got a pretty robust sort of booking lead time. New South Wales is down on average, but the real issue is there's some local government areas where garages pretty much closed. That's what's really playing it out at the moment. The rest of them are reasonably okay. It's a bit patchy branch to branch. It's not consistent right across the state, but the LGAs are the ones that have really been impacted. Perfect. Thanks for the information. That's all from me, guys. Cheers. Thanks, Mitch. Okay, there are no other questions in the queue. Folks, this is your chance. Last questions. If you're in the Zoom app, please hit the raise hand icon. If you've dialed in via your telephone, just press star 9 on your keypad if there are any further questions. Which there are not. I'll now hand you back to Graeme Whickman for closing comments. Okay. Thanks, Dean. Well, I guess that concludes the session. I think both Martin and I look forward to the opportunity to speak with many of the folks on the line in the ensuing next few days and weeks. Appreciate your time, your attention, and ultimately, your insightful questions and look forward to having a bit more time at a later stage. Thank you.