Presentation, which we're sharing that document on screen. As Andrew mentioned, we will be available to take questions at the end of the formal presentation. AVJennings' 89th year since its creation in 1932, saw conditions and challenges that continued to be dominated by the impact of the COVID-19 pandemic. I understand that at a results briefing, the focus is on the outcomes and numbers, but I think it is worth spending a few minutes on some very important matters that help us all understand those outcomes and those numbers. The pandemic was not discriminatory. It was globally reach and a risk to all. The company was not immune to all of this. What became clear very early was that we had some strong positives on which we could draw. The first was our business model, and we've talked to this before the pandemic. To some at that time, it may not have seemed very important. We raised it in terms of how the company best deals strategically with the realities of property cycles. We talked to 3 main aspects. Firstly, a focus on traditional housing. Secondly, a focus on traditional customers. Thirdly, being diversified across regions. What became very clear very early was that these strategies were going to become even more important in meeting the challenges of the pandemic. The likely growing preference for traditional housing and communities is something that will be addressed later. What has been important to date about our model has been the ability for us to scale down and then scale up our production, given our predominantly horizontal development model. While some restrictions have been in place, generally speaking, construction has continued as an essential service. We've been able to overlay the ability to continue to operate with flexibility of our model, with our priorities around pre-sales. Property markets often move in different ways across regions, even within regions. Being diversified across regions has helped the company mitigate this market risk. These changes across markets haven't gone away, but the pandemic added another significant issue, and that has been the lockdowns and the impact on regional economies, employment levels, confidence, and the freedoms to live our lives the way we have done in the past. A long-term focus on the traditional customer base has meant we understand our customers. We understand why they buy, why they don't, and when. Slide 5 shows that we've continued to focus on those traditional customer segments. There is no doubt our model gave us some useful protection and levers to help manage our way through a very challenging period. I think we all know the pandemic has gone beyond just strategy and beyond models. It has made us assess our beliefs, our priorities, what matters most, our courage and resilience, our care for others. Whilst we talk of what the company did, what results it achieved, it is the actions of people from the board to the leadership team, to every individual who had to decide under extremely challenging circumstances, their answers to those questions, and then back those words with actions. It is only then that slide six comes to life and has true meaning, and I'm proud to say that the points listed on slide six have indeed been lived. Before addressing the four points on slide six, I want to highlight that the first and foremost priority was safety. That was the starting point from which we took other decisions around priorities and around actions. Turning to the points on slide six in those four areas. Firstly, there was an even greater focus on customers. No doubt, understanding our customers helped, but what mattered was care, empathy, and a commitment to meeting their expectations. I'm privileged to lead a great group of people at AVJennings. Their experience, what they stand for, their care for others, all came to the fore. Pleasingly, our employee engagement survey achieved a higher score than the previous year. For many years, we've talked about the importance of partnerships and relationships and how the company has been built on so many long-term relationships. During the year, at times this was challenged. Suspending works or scaling back works is not just something measured in impact on AVJennings. We know it also affects so many others. It is why we have tried to the best of our abilities to engage with our partners and stakeholders. We've been transparent in uncertain times, and we have balanced the needs of as many as possible in making decisions. At the heart of our why is housing matters, community matters. In many cases, our direct contact with our communities had to be curtailed for periods. We found other ways. We continue to support our community partners. It is just not in our DNA to abandon those who do so much for the community when they are facing some of their toughest times. On slide seven, we try to bring the customer focus to life by giving examples of some of our customer feedback. Interestingly, I received more communication from customers this year than I can remember. Most of it was extremely satisfying. In a year like we have had, with the restrictions we have faced, mistakes will be made. What has been pleasing has been the response to address these, and that is actually the true test of culture. Slide eight expands this into a word map based on feedback from our latest customer insights report. I'm pleased to say the outcomes were a further improvement on previous results and previous feedback. I mentioned a few minutes ago the wonderful AVJennings people. To those shareholders on this call, as you look at some of those people on slide nine, I hope we all take the time to reflect on how brilliantly they have represented our company during extreme challenges. Slide 10 refers to trust. In a year when trust counted for so much more, we were honored that our customers were willing to put their trust in us. I mentioned before our wonderful community partners. We know how much you have struggled through really challenging times this year. We are proud of what you do and that we have been able to play some part in enabling you to do it. Before handing to our CFO, Larry Mahaffy, I just want to end this section by stating our ongoing commitment to all aspects of ESG. Right across our business, we are looking at ways we can be an even better company. Now, I haven't forgotten this is a results briefing, and we will now turn to the results themselves. In a financial year like the one just ended, it is absolutely relevant to understand the foundations of the company across strategy, values, people, and brand. It is on these that results are built. Larry, I will now hand over to you to take us through the financial results. Thank you, Peter. Good morning, everyone. As you know, in this part of the presentation, we summarize and compare key outcomes and performance measures achieved in the year under review against those recorded in prior periods. In doing so this year, we acknowledge that some comparisons may be less meaningful than usual due to changed external circumstances. That said, it's fair to say that the company is proud of these results, given the ongoing challenges that we all face. Slide 14 summarizes performance in the year under review and shows, compared with the prior corresponding period, that revenue of AUD 311.1 million was up 18.6%, profit before tax of AUD 26.7 million was up 102.7%, and profit after tax of AUD 18.7 million was up 107%. The result includes AUD 2.8 million in JobKeeper receipts, absent which expenditure on fixed overheads was stable. Earnings per share rose by 107.2% to AUD 0.0462 per share, while net tangible assets and net tangible assets per share both firmed. Average gross margin was stable at 22.6%, and following declaration of a final fully franked dividend of AUD 0.018 per share, the total dividend declared for fiscal 2021 rose 108.3% to AUD 0.025 per share fully franked. This represents a grossed-up yield of 5.9% based upon the volume weighted average stock price for June 2021 of just over AUD 0.60 per share. Slide 15, please. Thank you. Slide 15 shows the company's recent earnings and dividend payout history. AVJennings is sometimes regarded as a yield stock, and the company aims to declare cash dividends equivalent to around 50% of its after-tax earnings in any given financial year. A practice only interrupted in fiscal 2020 because of measures taken to respond to the initial uncertainty associated with the onset of the pandemic in Australia. Slide 16 depicts revenue rising in line with settlements, which at 905 lots was up 39.4% on the prior corresponding period. Contract signings, a key indicator of future performance, were well up at 953 lots, having a contract value of AUD 327.7 million, compared with 697 lots with a contract value of AUD 241.2 million in fiscal 2020. Slide 17 indicates that the rise in revenue in fiscal 2021 was well spread across our major regions, and if the extent of lockdowns in Australia abates before December 2021, their contribution is expected to strengthen further in the latter part of 2022. New South Wales remains the strongest market in the company's portfolio, and its contribution to turnover in fiscal 2021 was constrained by stock availability, as strong demand pulled forward contract signings ahead of production. The investment in land and housing work in progress in New South Wales is increasing rapidly, and we are confident that, all other things being equal, of course, its contribution to revenue will also rise in fiscal 2022. Slide 18 illustrates that revenue from land only and apartments grew year-on-year, while that from low-rise housing fell. Around 70% of settled contracts were for land only. The significant rise in apartments revenue is attributable to the completion and substantial settlement of the Empress building at Waterline Place in Melbourne, comprising 60 apartments, of which some 49 had settled by the end of the year, with only eight apartments then left unsold. The reduction in housing revenue is a function of timing only, as the number of houses and townhouses under construction increased, with 181 dwellings started during the year, compared with 132 dwellings in fiscal 2020, and there are plans to increase this further in fiscal 2022. While it takes more capital and an average of seven months to complete a detached house, land is expensive to replace, and building on its own account enables the company to enhance the return by extracting maximum value from a scarce resource. Slide 19 illustrates the growth in contract signings over the past three years and notes that 431 of the 953 contracts signed in fiscal 2021 were carried across balance date. Of these, some 402 contracts, having a contract value of around AUD 111 million, are expected to settle in fiscal 2022, providing a good start to the current financial year. Slide 20 summarizes the balance sheet, which remains strong, with borrowings well down and Net Tangible Assets up. All bank debt is classified as non-current. Slide 21 indicates the effect of good settlements on the cash flow statement, with strong net cash from operations being applied to further reduce net debt. Pleasingly, after a period of hiatus, this included capital recovered from some lower-margin South Australian and Queensland projects in which activity was stimulated during the year. The company is well-placed to continue increasing its investment in work in progress and acquisitions in pursuit of further growth. Slide 22 shows that gearing is well within the company's target range of 15%-35%. Indeed, reducing to its lowest level since 2019 at just over 20% of net debt to total assets as at the 30th of June 2021. The core club debt facility of AUD 250 million, which has existed in much the same form for over 20 years now, next terminates in September 2023. The company has adequate undrawn banking facilities to fund its objectives and remains compliant with all lending covenants. Slide 23 indicates that land under control at balance date was basically stable at 12,180 lot equivalents. There are several exciting acquisition opportunities currently under active consideration, and we are confident that our land inventory will be higher in 12 months than it is today. Slide 24 shows that a sustained higher rate of contract signings and more building activity translates into higher work in progress, which at 1,537 lot equivalents, has recovered much of the ground lost in the earliest phase of the pandemic. We expect to complete around 787 of these lots in fiscal 2022 and aim to improve around 265 of them with low-rise dwellings. This slide also indicates that completed unsettled stock reduced from 378 lots in June 2020, of which 156 lots were unsold, to 197 lots at 30th of June 2021, of which only 108 were unsold. I'll now hand back to Peter. Thanks, Larry. As we look forward, we'll do so from three aspects. Firstly, we'll look at the general economy. Secondly, we'll discuss the state of the residential market. Thirdly, we'll discuss how AVJennings is placed. Starting with the overall economic conditions, many of us will be in areas subject to lockdowns right now and will be dialing into this briefing from home. As a Melburnian, I am today experiencing my 200th day in lockdown. For all the challenges of the last year or so, it is fair to say Australia and New Zealand have bounced back well, and we remain confident in both economies going forward. This is especially so given the bounce backs we have seen already and the recoveries achieved, even with the borders closed. I do want to emphasize that that is said without downplaying existing lockdowns and the risk of further challenges, nor is it said forgetting the significant impact on some sections of the economy and those who rely on those sectors. We feel strongly for those people and for those industries. As we moved into 2020, we saw in the early months, the signs of recovery in the residential markets such as Sydney and Melbourne after a number of years of subdued activity. It was something we commented on throughout 2019. The onset of the pandemic challenged these recoveries. The fundamentals didn't change and as the lockdowns eased, even beforehand in some cases, activity levels resumed, as did price growth, which reflected stronger market conditions. The residential sector includes some significant and experienced organizations. I think it is well worth noting that most are actively pursuing new site acquisitions. It can only be assumed this mirrors our confidence in the future direction of residential markets. With this comes some challenges, and unfortunately, most aren't new. Affordability is again rising as a challenge. Supply is being hampered by approvals processes, and state budgets are yet again looking to increase taxes on property, which ultimately threatens supply and affordability. In June 2020, the federal government announced its HomeBuilder scheme. We were supportive of this at the time, and whilst understanding demand was strong, uncertainty was significant. Encouragement was needed. Some issues have arisen, such as the impact on availability of trades and supplies due to the timeframe compression of the HomeBuilder scheme rules. However, overall, the scheme was a success. As a result of the combination of strong underlying demand and HomeBuilder, after that initial period of uncertainty, we saw contract signings rise. As an important indication of the strength of the market fundamentals, it is absolutely critical to note that sales momentum continued once HomeBuilder ended. HomeBuilder provided important, critical initial support, but ultimately, market fundamentals took over and remain the current and future drivers of residential markets. Which all brings us to our views on the outlook for AVJennings. To start, FY 2021 was a year when despite early and significant challenges, we were not only able to hold ground, we moved forward in many areas. We enter FY 2022 with good pre-sales, increased production levels, and a strong balance sheet to continue momentum. We believe the economic climate for both Australia and New Zealand is looking positive, and the fundamentals for residential property are also positive. In terms of the markets in which we operate, we believe our focus on traditional customers in traditional communities will be a positive factor. We are already seeing a preference for more space, both inside and outside, as well as a greater sense of community. No doubt, the increase in time working from home and less time commuting is playing a significant role in this change. Of course, we are fully aware the challenges are not over. In the short term, we are facing continuing lockdowns and continuing restrictions. The closure of international borders is well into its second year. We will continue to react to whatever challenges come up. Longer term, we remain very confident in the futures of Australia and New Zealand and the residential markets in particular. What gives me the greatest confidence is what I talked about at the very start, a belief in our strategies, our culture, the strong relationships we have created, our commitment to our why, housing matters, community matters, and especially our people, what they stand for, as well as their experience and their expertise. As we head towards our 90th year in 2022, we can proudly look back on the first 89 years. Those years have seen the company not only survive but prosper through recessions, wars, and now a global pandemic. Indeed, it's worth remembering that the company was founded in 1932 during the Great Depression. We can look forward confidently to the future knowing we have built on that legacy that the past has created. With that, I will hand back to Andrew to take us through the formal Q&A section. Thank you, Peter. For those who joined a little late or as a reminder for all participants on the call, this is an opportunity to ask questions. You can do so by either raising your hand in Zoom or typing the question into the Q&A feature. We do have a question that has come through in Q&A from Max Shen. "Can you provide some further commentary on the gross margin? Also, house prices are at all-time highs in nearly all your markets, yet gross margin remains below the 24%-25% range you have achieved historically. I'm happy to take that one, Andrew, while others are entering their questions. Thanks for the question, Max. It's a complicated outcome, margins. There's a number of moving parts. I get the gist of your question, I think, around current pricing. I'll address that first. If you recall last year, around that April, May, June, July period, most people were forecasting property prices would drop 20%, 15%. That was fairly common. That didn't eventuate, but certainly there was some discounting that happened. Those contracts, while they were signed during that period, were recognized this year. While I agree with your comments about rising prices as the year has gone on, some of our revenue recognition this year is reflective of those contracts that were signed during that period where pricing was under pressure. It wasn't mentioned, I don't think, in the briefing, but it's certainly in our 4E announcement. Margins still include an adjustment this year for the net realizable value adjustment for a couple of projects in Adelaide. They have also impacted negatively on margins, which did not happen last year. That's a unique entry to this year. From memory, it's around AUD 1.7 million. There's a number of factors there. As we're going forward, if I maybe just take your question, I'm not sure you've specifically asked this, but maybe it's relevant to you and the audience. Going forward, we are seeing price growth. We have seen that throughout the year, but we're also seeing costs increase as well. Our belief is that that will be at least a neutral outcome in terms of price increases at least being matched by that revenue growth. We do have some protection to date in that the contracts that are pre-signed that we've mentioned earlier, that Larry referred to. They do reflect price growth certainly from 2020 levels. Hopefully, that answers your question. Thank you, Peter. A reminder to attendees, please enter your question into the Q&A feature and I'll be happy to ask that of Peter or Larry. The other option is to raise your hand in Zoom, and we can bring you into the call directly. Thank you. There is another question that has come through in regards to the franking credit balance. It's from James Starr. Does the company have any plans for dealing with the surplus franking credit balance? David, thanks for the question. It's probably more a question heading into the AGM, to be honest, around that too, to that, rather than particularly relating to the results for the financial year and from a management position. I'll give you a few comments, but I do think ultimately it's an AGM-style question. In terms of the first part of your question, strategy to get share price to NTA. We referred, and Larry mentioned it two times in his part of the speech, around moving through some of the legacy projects, and we had some in South Australia, we've had some in Queensland. I'm pleased to say that we've been very active this year in reducing some of those assets that haven't been making investment-grade return, which I've no doubt has some impact between the gap between the share price and the NTA as we reinvest. Well, I suppose there's two things. Firstly, to the extent that they've been depressing average returns, that stops as we work through that balance. The second thing, you get to reinvest it in projects that do give you an investment-grade return. That's the first thing, is to work through that part of our balance sheet that has been relatively inactive and to accelerate the return of that capital. We've been very successful over the last few years, but particularly last year, we took the opportunity to move through some projects more actively in that regard. In terms of the franking credits, it's a question that is asked frequently. We do consider it from a strategic point of view around capital management, and it remains something that is under consideration by the board. I probably am best to leave it at that unless there's anything else you would like to raise, David. Maybe you would like to raise that again at the AGM because I think it's something more appropriately addressed as a board position. Thank you, Peter. A reminder for participants, please send your questions through the Q&A feature, and we'll be pleased to read them out. There are no open questions at the moment. We'll wait a little bit longer. All right. There are no more open questions there. That being the case, thank you very much to all the participants for listening in today and dialing in. Thank you to Peter and Larry, and we will finish the AVJennings conference call there. Thank you very much. Thanks, Andrew. Thanks, all. Thank you.
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