Thank you for standing by, and welcome to the Bega Cheese Limited Full Year 2021 Result Conference Call. I would now like to hand the conference over to Mr. Barry Irvin, Executive Chairman. Please go ahead. Thank you. Hi, everyone. Very nice to join you today, and thank you for taking the time to join this results conference for our 2021 financial year. It was certainly a very busy year for the company and one with plenty of opportunities and plenty of challenges, and I'm delighted to present the result that we've achieved to you today. For those that are following on the slide presentation that's been previously released, I will let you know when I'm moving to each slide. I suppose the key messages from this year is that it has been a very strong financial performance by the company in the context of challenging and changing markets and a major acquisition. Revenue of AUD 2.07 billion, inclusive of five months of Lion Dairy & Drinks, is yet again another increase on revenue from the previous years. We are very pleased to announce a statutory EBITDA, which Paul van Heerwaarden, the CEO, will speak more about later in the presentation, of AUD 182.7 million and a normalized EBITDA of AUD 141.7 million. Importantly, we're seeing the balance sheet continue to strengthen, and we now have a leverage ratio of 2.25. Obviously, there's been a lot of discussion over the last six to nine months as we were first bidding for and then successfully acquired Lion Dairy & Drinks. We were delighted to complete that acquisition and indeed a successful capital raise back in January. That's obviously seen the business then embark on a strong integration program for LDD. It is worthy of note that from an accounting perspective, LDD has been assessed provisionally as a bargain purchase. I suppose in a year that has had a lot going on, it is very worthy of mentioning, obviously, that we continue to manage all the impacts of COVID-19, whether that's operationally within our business or indeed the impacts that are occurring in the market. Those changes in the market obviously occur from time to time, depending on exactly what impact is happening in both the domestic market and the international market. There has been a structural change in the Chinese infant formula market that has been well-documented, and that market and channel, I think, has to be represented as a structural change. Obviously, we have looked to manage the impact of that on our Nutritionals business. There remains very strong competition for milk, and indeed that's translating into strong prices at the farm gate and very strong competition for milk. I'm pleased to say, and I'll speak about it a little later, that the company has confirmed emissions targets for the business going forward for both 2030 and 2050, and indeed embarked on what we think will be a significantly important project around the circular economy and pilots associated with that being initiated in the Bega Valley. I think importantly, over the last few years, we've had to speak with you around legal cases. Both those legal cases have come to a conclusion, and we're pleased with the outcome of each of them, which again, we'll discuss a little later. Moving to the values slide at Bega, I think it is fair to say, as I often talk about, that it is the values that drive this company. I think it's the values that have seen us set a strategy that covers everything from how we behave commercially to indeed our impact on our community and our environment and the approach we take to the business we conduct. It's very important for us that we continue to have that passion for our customer and our consumer, that we grow our people, and we invest in our future, which has been very strongly demonstrated this year. Indeed, we support one another across our entire supply chain, including our dairy farmers, our peanut growers, and the farmers that produce our various juice products. So we're very pleased with exactly where we are at the moment in terms of both the development of the business, the values that we've looked to maintain, and the financial outcomes we're achieving. If I direct you to the next slide, it obviously does tell that story of continuing growth, very careful acquisition to meet a target that a vision to create a great Australian food company, that we continue to very carefully and very strategically step through each step, strengthening the business, seeing us see the benefits of scale and the strength of brands that we now have under our control. I think it's something that we're very proud of, both not only in terms of how we've managed to grow the company, but the manner in which we've been able to execute that growth. It is actually all about creating sustainable growth through an integrated supply chain. While I move you on to the next slide that talks about our vision and our values, it's probably really important for me to talk about the business enablers that I think have made the difference within our business. It starts with that deep industry knowledge, in dairy and FMCG. As we've strengthened the business, we've always had a core knowledge around dairy, but we've strengthened our knowledge in the supply chain, and particularly in FMCG, that has seen us being able to very deliberately implement a strategy that sees us achieve these results today. We have always been very close to our farmers and the core piece of our supply. That means that sustainable practices, circularity that we're now introducing, is very much a part of our DNA and hence why we're very pleased to be able to talk about some of the initiatives we have there. That careful financial management that I think is beginning to come through as well, around capital and balance sheet is again evident in this year's result. As is the fact that we've been able to manage what is a very changing and volatile marketplace, and I think our risk management and governance has been very important. It's always important, but in the last 12 to 18 months, with the impact of COVID and that constant changing around the market and supply circumstances, and some volatility in international markets, have all been very carefully managed because of the experience we bring to the table. Of course, the acquisition of Lion Dairy & Drinks, if I move you to the next page, has really been very important and a logical next step for the company, and we've been delighted to be able to make that acquisition. It does fit with our core capabilities. It is a strategic alignment that's been well documented as we now have the capacity from farm gate, right through to our end customer, wherever they may be in Australia or around the world, to deliver value-added products and branded products to the consumer, but also manage our milk in the most effective way. Each liter of milk can be directed to a product or a customer that maximizes the return that we can generate from that product. Still work to do, obviously, in the integration of Lion and indeed the opportunities that we identify throughout the business. Certainly, we're well down the path around synergy opportunities, and we continue to want to invest in our business to improve those returns that we get out of every 1 liter of milk or indeed, peanut or piece of fruit that we process through this business. If I move you to the next slide, we are very proud of our record around creating that wonderful portfolio of iconic brands. It's fair to say, it's been a path where we've been acquiring brands and then investing in them and building them and reinforcing some of that consumer loyalty. Quite frankly, we've been bringing iconic Australian brands home. Whether that's Vegemite, whether that's Dare flavored milk, Farmers Union, the Masters brand in Western Australia. We've been bringing some of Australia's favorite brands back into Australian ownership and then building on the strengths of those brands. We're delighted to show that story from pre-2017, through to today. In this year, we've gone from pre-2017 to be less than 20% in brands, and consumer goods, to now in this year with just five months of Lion under our belt at 73%. We'll expect that to increase to in excess to 80% with a full year of Lion Dairy & Drinks in our portfolio. Ladies and gentlemen, just to move on to the next slide, which I think is very important in the context of all that is occurring in the world today. That is that it was important for Bega to review its sustainability and circular economy approach and indeed think about carbon targets and emissions targets for the company. It was the right time, especially given the acquisition of Lion. We are using a baseline of 2021 in terms of the targets that we will set for the future. I'm pleased to announce that in terms of emissions intensity, we've announced a goal of a 50% reduction by 2030 and a 40% reduction in absolute emissions by 2030. Perhaps to explain that a little more, obviously we have different products and different facilities in our portfolio that have different emissions profiles. By announcing a reduction in emissions intensity, it means that every one of our staff members, every person involved with the operations of Bega Cheese, think about how they can get a 50% reduction in intensity on the product that they are responsible for. Intensity around a particular portfolio of products for a particular site. If everybody is working toward a 50% intensity reduction, that is what we want. We believe that will yield us, in absolute emissions terms, a 40% reduction by 2030, and of course, a net zero emissions by 2050. The board and I and the senior executive team believe that these are minimum goals. We would obviously like to achieve better and more than that, and we will be working to achieve better and more than that, and indeed it's part of Paul's and my performance criteria to make sure that we are meeting these goals around emissions and indeed around circularity in the Bega Valley. Just to dwell a little on circularity, we're very proud that we've been championing along with KPMG and Rabobank an approach to circularity that is community-wide in the Bega region. We are soon to be in a position to launch a non-distributing community-based cooperative, which obviously Bega will support along with many others. That will see us focus on the entire impact of business in our region. We believe this will be a pilot for many others to follow. It will assist us in dealing with our business across all 20 of our sites, but importantly, it sees the collaboration with government, small and large business, community organizations, the indigenous community, to make sure that we are managing our environmental footprint across more than just emissions, but across indeed all that we do in our operations. That all said, I am very pleased to hand over to Paul van Heerwaarden, our CEO, who will give you his perspective on the performance this year. Thank you, Paul. Over to you. Thank you, Barry, and thank you to everyone for joining us this morning. As we normally do, Pete and I will take you through a review of the year. If you can turn to page 12 of the presentation, you will see a list of items, some of which Barry has already touched on, and others that we will provide more detail on in the following pages, including the financial performance and the acquisition and integration of the Dairy and Drinks business. I would like to draw your attention to a few points on this page, including a couple of years ago, we started talking to the market about the current lack of further investment and also the organization and process review. Both of these initiatives were concluded in fiscal year 2020, and we benefited from the full year impact of these two initiatives in FY 2021, which has been a very important contributor to the result. Also, if I can take you back, over four years ago, we concluded a transaction to sell an infant formula dryer and an infant formula canning plant for AUD 200 million to Mead Johnson, who were subsequently taken over by Reckitt Benckiser. We also entered into a 10-year access and service agreement, which would approximately provide us further AUD 100 million in earnings over the contract period. Earlier this calendar year, Reckitt, as they are now known, served termination notices on these agreements, and as a result, they were required to provide termination payments to Bega, which Pete will touch on later. While our preference was to continue these contracts, the material payments we will now receive will allow us to reset this part of our business and position it for further growth and consolidation. We continue to focus on safety and diversity and inclusion programs. Finally, from both a Bega perspective and also a personal perspective, it was very pleasing to see the positive conclusion of the litigation with both the Kraft and Fonterra cases, which I mentioned a few years ago. If you can now refer to page 13, and I won't dwell for too long on this slide, Barry's touched on a couple of these points earlier, but it is worth reflecting for a moment on the continued growth of the company over the past 20 years in both acquisitions and business development. Importantly, again, Barry mentioned this, you can see from the pie charts on the right-hand side that increase in sales in a significant growth environment from our branded business, which will continue to grow into FY 2022 as we see the full year impact from the acquisition of the Dairy and Drinks business. Page 14 provides headline financial numbers, it's certainly pleasing to see our leverage ratio to continue to improve, noting that the 2.25x leverage does not include yet a full 10 months of earnings from the Dairy and Drinks business. Barry mentioned some of our earnings and revenue numbers earlier, so I won't draw your attention to all of them, but focus on the profit after tax, the statutory profit after tax result of AUD 72.2 million, and also the normalized profit after tax of AUD 39.6 million, both increasing compared to the prior year. I should also point out the EPS numbers reflect only five months of earnings from the Bega Dairy Drinks business, so we'd certainly expect to see them increase materially as we get into FY 2022. I'll now pass you over to Pete, who will continue a discussion about our segment results, further details on the financial result, and also an update on the acquisition and integration before he'll hand it back to me to finish off. Thanks, Pete. Terrific. Thanks, Paul. This next slide 15. Those of you who followed us last year will be aware that in the results in FY 2020, we introduced our new bulk and branded segments and moved away from our traditional view of the business, which had been based around legal entities. What we've just tried to do is set those out here. The bulk segment really focuses on the parts of our business that produce bulk product that we sell into markets, and would include a plant, for instance, like Koroit. Whereas our branded segment actually includes those assets that produce branded products or do secondary processing for branded products that are ready for shelf. Down there, you'll see the core capabilities and how they relate across those segments that Barry touched on before. This is very much how we're looking at the business, and obviously excited by the exposure we're getting to the branded segment and the margins and extra value that it offers us to be able to add to our materials. We'll just go to the next slide. We've just cut a segment view for the year. You'll see there that both earnings in branded and bulk increased over the period. Obviously, you've got the five months of Lion Dairy and Drinks trading in that result there. It's worth noting too, the inter-segment elimination of AUD 344 million of revenue. We do actually track that number. That's the amount of product that was sold from our bulk segment into our branded segment to add more value to. That's a number that we're pleased with and continue to try and add value to those bulk products. The branded business obviously benefited from the Bega Dairy and Drinks earnings since January. We had really good sales growth in spreads domestically and our cream cheese product in Asia, which was a good result there. We actually wore some cost of redundancy in those results with the transfer of our individually wrapped slices production as it was consolidated into Strathmerton. Obviously, bulk, real benefit in Nutritionals from the full 12 months operation of our new lactoferrin plant at Koroit that was put in place just before the start of the financial year and operated superbly. We produced 30 tons of product out of that facility, and that actually more than mitigated some of the headwinds we had in the infant formula part of our nutritional business. We also had some favorable commodity pricing in some parts of our business there, which was a really good result. Just move on to the next slide. The reconciliation of our normalized results. There was a huge amount of activity, obviously, with the acquisition of BDD. We did have quite a few adjustments this year to make to the result, and I'll just walk you through sort of the key points from those. You'll see the statutory EBITDA number of AUD 182 million there on the left-hand side, EBIT of AUD 107.7 million and profit for the year of AUD 72.2 million after income tax expense. The first key adjustment was transaction costs related to the Lion Dairy & Drinks acquisition. Just the material numbers there. We had stamp duty of nearly AUD 30 million, transition costs of AUD 13 million. We had our redundancies for the Lion Dairy & Drinks organizational review that we put through of AUD 6.5 million and then another AUD 5 million or AUD 6 million of consultancy costs and advisory costs. They were the predominant numbers there. You'll see there, unfortunately, we weren't able to pick up as much deductibility as we would have liked because of the stamp duty costs being nondeductible. Barry touched on it before. We did have a bargain purchase entry, which is provisional at the moment, but that's due to the difference between the price paid for the asset and the provisional item in the balance sheet when we've gone back to do further valuation work, and that sits at AUD 70 million. So provisional number, but we're very comfortable with where that is at this stage. And as Paul mentioned, we had the termination of fees from Mead Johnson. This is the first portion of those that we've picked up in the financial year. So just under AUD 3 million of earnings coming through there from that termination. We're showing AUD 14 million in the revenue line and the other AUD 14 million is sitting further down the P&L. That's just the split of treatment between service fees and access fees. We've got the Kraft legal settlement. It was terrific to have that finished. That was for AUD 9.3 million. We've obviously removed that from the results. On just other costs, some of those were the write-off of some SaaS assets we had on the balance sheet. We put in a BlackLine accounting system and a HR system that had to be written off. The other main cost there and just some legal costs for the Fonterra case. Of course, that's to be finalized this coming financial year. That gets us to a normalized outcome of AUD 141.7 million of EBITDA. It's worth noting we did incur just under AUD 10 million of restructuring costs associated with the IWS transition and also the completion of our organizational process review, which we talked to you about last year. They are in the results, in the normalized result. That just explains the movement between statutory and our normalized earnings. We'll just go to the next page. Just around the balance sheet. Obviously, a lot of impact to the balance sheet this year with the addition of Lion Dairy and Drinks. As I said, that number's still provisional, but there was about AUD 600 million of new assets that came across. Obviously, we had the capital raise for AUD 393 million to fund the acquisition of AUD 528 million, which was the ending cost of the acquisition when we netted off our working balance deal after settlement. Net debt increased by AUD 94 million, which was the balancing number there. We've also brought across nearly AUD 400 million of property into the asset base. Overall, the balance sheet's in a good position. We're very happy with where net debt's at at the moment. That was one of the objectives when we did the deal, to ensure that we had the balance sheet in a position where it could rebound strongly, and we're comfortable with that. We'll just move on to the next slide, which is around cash flow. Operating cash flows were down slightly on last year, still a really strong performance. We're happy with that. We were able to make some really good gains last year with working capital improvements. It was just difficult to repeat those again this year, obviously. We also built a little bit of inventory towards the end of the year. We got some opportunities around some extra milk procurement in the last couple of months. We had a terrific peanut crop up in PCA with the crop exceeding 20,000 tons. That's also added some inventory there. We're very happy with the balance sheet. Obviously, the increase in net debt, still at 2.25x, which is an improvement on last year. We have only got the five months of earnings in, we would expect that leverage debt ratio to fall further as we get the full 12 months of BDD earnings into that equation, also as we start to achieve those synergies that we talked about when we did the acquisition. We'll just move on to the next page. Just a little bit of an update on the integration of Lion Dairy and Drinks. In summary, we're extremely pleased with how that's going, and we're very happy that we've purchased a business that is consistent with what we found out during DD. We've implemented a 100-day plan, and that was really focused around stabilizing the business, doing a cultural assessment to ensure that we can understand the cultural differences and how we might navigate those so that we could retain the people that we wanted to retain and keep the people engaged within the Lion Dairy and Drinks business. From there, plan our synergies. That's gone particularly well, and we've actually executed on all of the organizational synergies that we wanted to do. We're well on line to achieving the AUD 36 million cost out program that we said we would in the full year of ownership, and that's lined with a AUD 41 million of annualized synergy savings. That's going very well. TSA agreement. We undertook a TSA agreement for 15 months when we bought the business, and we're pleased to say that we've moved off payroll, accounting, treasury, and tax, and that the only things to remain is technology infrastructure. That's looking towards completing by January next year. We're very happy with that. New capital projects in place. We've already kicked off a couple of significant projects that we think will help get the business on a growth platform, and that's around the yogurt with some improvements to the Morwell facility. We've also done a significant packaging cost reduction project with blow molding, being put on site up at Morwell plant, which fits with our sustainability goals, but also provides us with some strong financial benefit. Earnings performance for the five months was very strong. We saw some good tailwinds with our milk-based beverages and yogurt, which continues to do well. Whilst we've seen a mix change with COVID-19 at the moment, some of our on-the-go channels have certainly been reduced, and demand for our milk-based beverage products into those channels has come off. We are seeing a good, strong lift in grocery, particularly around yogurt. We still feel like there's good momentum in the business and our supply chain continues to stand up well in the COVID environment. Obviously, having a significant cold chain, some flexibility there, we think that that's particularly good and helped us mitigate risk. I think that's it. Paul, if I throw back to you. Thanks, Pete. I should thank you also, Pete, for everything you're doing. The last couple of years has been pretty busy. We've had a lot on and you've been thrown in the deep end, and you continue to turn up each day, so that must be a positive sign. You've presented a great set of results that I know from Barry and my perspective and more broadly, the board provides a lot for us and makes our life a lot easier. Thank you. If I could ask listeners now to turn to page 21, which is a page that contains a lot of brand logos and a lot of numbers. It is worth noting that none of these numbers or brand logos existed within our business over four years ago. This is a true transformation which we're very proud and excited about. Seeing iconic brands like Vegemite sitting alongside Farmers Union, Dairy Farmers, and Dare, and also smaller brands like Zooper Dooper sitting on the same page as an emerging brand like B h oney. We now compete in major food and beverage categories and have a dominant market share position in many of them. These numbers include structured convenience and grocery channels, but do not include a lot of our route trade business, which continues to grow and services up to 30,000 customers a day across Australia. A really impressive portfolio of brands and a reach across multiple channels in Australia and in international markets, which we're really proud of and look forward to continued growth. Turning to page 22, and I'll just provide a bit of an update on the next couple of pages on various initiatives across the product range. It's pleasing to see that the significant investment in our brands and new product innovation has continued following the acquisition of the Lion Dairy and Drinks business. Throughout FY 2022, we will see some exciting product launches that we can present further detail on at a later date. The integration of the business has also provided a strong platform for further growth, as I mentioned earlier, in international markets, which is a really important and growing part of our business. As outlined on page 23, the growth of our spreads business continues, with B honey gaining over 10% share in Coles, and with increasing distribution across Woolworths and the independents. We'll continue to see this segment grow for us in FY 2022. Vegemite, which is such a wonderful iconic Australian brand, continues to extend with new packaging formats and also this is the case with Simply Nuts peanut butter brand that we launched a few years ago and continues to grow and work very well for us in the market. It's also pleasing to see that we've launched the 180 Nutrition range of products into the grocery channel and also extended the Happi range of lactoferrin-based nutraceutical products into the pharmacy channel. Really good to see those emerging categories in these new growth areas for us. Moving on now to operations and the map on page 24, which Barry touched on earlier, this provides a real sense of the extent of our manufacturing network across Australia. We now have 20 facilities producing our extended product range and supporting our extensive chilled distribution network across the country. As Barry mentioned earlier, this extended network provides us with scale and flexibility as we continue to optimize and extract value from not only milk, but also now juice, and also peanuts and now honey supply chains. Page 25 provides an overview of operations, including a number of initiatives that have already been covered by Barry, Pete, and I in the presentation. I will point out that the synergy program across the entire supply chain continues to provide opportunities for ongoing savings and efficiencies, and we have a number of targeted capital projects in FY 2022, which will build on the work that we've already done to date in the current fiscal year. Moving on to the following page, COVID continues to provide challenges and opportunities for the business, as stated previously, and our priority is the safety of our people and our customers. For almost 18 months now, we have had our crisis management team and our site operations team meeting as required to respond to these challenges. This process expanded to include the Bega Dairy and Drinks business following the acquisition back in January. In recent lockdowns, we have seen a negative impact across our route trade business, particularly in Sydney and Melbourne. This will be offset by growth in our grocery trade and also offset with cost-saving initiatives and other growth initiatives across other parts of our business. Moving to page 27, which includes a chart which we've been presenting for many years now. While the proportion of our branded products that we sell continues to increase, we still need to ensure we closely manage our bulk commodity business and the risks associated with commodity and foreign currency volatility, along with the domestic milk pricing. This chart tracks the export commodity index and our southern region milk price. If I can draw your attention to the gray and green lines just to the left of the shaded light gray area, you can note that the commodity index at the time we set milk prices last year was in rapid decline, which presented challenges that we navigated through during the first half of the financial year. We saw a strong recovery as we got into the second half of the year and supported increases in farm-gate milk prices. This has carried through to the FY 2022 opening milk prices, which are record prices. Our business following the acquisition of Lion Dairy and Drinks is larger, more diversified, and while we are now significantly less exposed to commodities and currencies, it remains a key focus for us. Before handing back to Barry, can I please turn your attention to page 28, which includes progress on our CSR targets across our five focus areas. This is a slide, again, that we've reported in previous years and provides a good update across each of these focus areas. In addition to good progress on our improved nutrition targets, we have made good progress on diversity and inclusion with a number of initiatives, but we still have a lot of work to do in this area. Barry covered our carbon emission targets earlier, which provides further focus for the business as we address the challenges from climate change. The importance of packaging continues as we grow and increase the proportion of our branded food products across our business, and we are on track to meet our commitments to the 2025 National Packaging Targets. Water sustainability initiatives across our supply chain have contributed to further improvements in this fifth focus area. That's it for me, Barry. I can now hand it back to you. Thanks, Paul. I think as you mentioned around Pete, certainly also apply to yourself in terms of the work done this year, it's been a heavy workload in a very changing environment. As I said at the opening of my talk, very pleased with what we've been able to achieve during this period. It is worth reflecting on where all of that work puts us today. If I move you to the next slide. I think, as we've sort of repeatedly said, very pleased with the work that's done and the progress of all the initiatives that we've put in place, inclusive of the point of time we are at with the integration of what we will now refer to as Bega Dairy and Drinks. We've been talking about it in acquisition terms as Lion Dairy & Drinks for a period of time now, but internally it is now known as that division and that work is now known as Bega Dairy and Drinks. That's what we'll refer to it from this point on as we continue to integrate and we continue to recognize and invest in new opportunities in that component of the business. We continue to be pleased with the improving financial performance that we demonstrated last year and the benefits of scale that we're now achieving, given the size of the business. That does include a strengthening of our balance sheet in the years past. As Paul demonstrated in his presentation, we now have a strong suite of brands, many in really good growth categories, which obviously will be our focus as we move forward. We see in the existing business that we now have, there is good opportunity for further growth and good opportunity for further business improvement. The geographic product and channel diversity that we now have, whether that's in milk procurement across the country or indeed even in products like peanuts, or it is in our customer base where we are delivering both to the major retailers but through a significant chilled network, helps build the business resilience that we think is required in these changing times. I should say that, of course, we should never forget that that diversity of markets does include the international markets where we continue to have a strong presence, exporting to approximately 40 countries around the world. I think the fact that we've got geographic diversity in procurement, customer diversity, both in terms of who we sell to and the channels in which we sell to them, and market diversity in both Australia and international, helps build that resilience to the business. As Paul mentioned, we have seen, again, strong farm-gate milk price increases. In some cases, competition for milk has seen, in some product ranges, that being in excess of returns for some of those product streams. Hence, really part of our strategy to make sure that we're focused on the higher value and branded end of business. Still work to do there, but certainly very competitive circumstances for farm-gate milk prices. That's returning good prices to farmers in an environment of good seasonal conditions, which I think is seeing much more optimism from our farmer base in general. As I mentioned in my opening comments, and I'll just reinforce that, we have a view that there is now a structural change in infant formula market and channels, particularly related to China, and that's obviously particularly related to the daigou channels, but also related to consumer preferences in those markets. We have been producing infant formula for a great many years. It is very much a part of our core competency. We are very pleased to still be in that space. We have been there while we have seen significant demand increases for infant formula and recognize the opportunities there, both in terms of supplying it, but also in terms of realizing some value for some assets. We will look to make sure that we right size our infant formula capability, and that we have the right assets to make sure that we are servicing existing customers and no doubt new customers as that segment of the market begins to settle down. We're just emphasizing that we do see that demand change that has been well-documented staying with us, but we also see that we will adjust our footprint and our business accordingly. Paul mentioned the COVID-19 lockdowns in particular impacting food service and convenience channels. Something that we have to manage. Obviously, we understand and are very concerned around community health, and I guess reinforce the wish that people comply with government health orders. Equally something that we will be very pleased, as I'm sure the entire community will be, to see those lockdowns come off and indeed, vaccination rates go up and those markets return to normal. That does impact us in some ways. As Paul outlined, that is something that we need to manage, and we do see some benefits in other areas. Going to the next slide in terms of our priorities, this is our last slide, and I'll be very happy to take questions after it. In terms of our priorities, it should always be emphasized that the safety of our people, and that's all associated with Bega Cheese and their wellbeing, is our number one priority. That, of course, in recent times, has also included how we've dealt with COVID-19. Paul's outlined that in terms of our teams, and it's the very senior teams and people right throughout the business that are making sure we are making our environments as safe as possible. We do need to manage the external impacts of COVID-19, and it's important for us to continue the focus on realizing the synergies in Bega Dairy and Drinks, which we are, as we've outlined, on track to do. We will increase our investments in brands, markets, and capabilities where we see opportunity. We think that there are great opportunities, whether that be in capacity or indeed in delivering to the consumer innovation that they are looking for. We will make sure that we are building on the quality assets that we have purchased. We think there are further manufacturing optimization projects, which we will continue to work. That's particularly around Lion, but across our entire integrated network. We do think there are opportunities for further rationalization and business development, and that's obviously something that's always on our mind within this business and indeed externally as well. It is important for us, and Paul mentioned, we think we've got more work to do around diversity and inclusion, but it's an important initiative in the business that continues to get the full support of the board and executive, and it is very much part of our priority. I think I'll finish with sustainability and the circularity initiatives that I mentioned earlier. Very pleased to be announcing our target today and particularly proud of the circularity initiative that we've only spoken briefly about. We will have more detail, obviously, in our sustainability report that will be out very soon. We would expect in the next couple of months. Certainly pleased that, as you would expect from a company with the DNA of Bega, where we have those close links right back to the farm and right through manufacturing and regional communities, that those initiatives, it's nice to formalize them, but they have always been a part of what we do and how we approach our supply chain and indeed our farmers. Look, thank you everybody. Very, very pleased to have presented this result to you today and happy to take questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Michael Peate with Goldman Sachs. Please go ahead. Morning, Barry, Paul, and Pete. Just the first question on the Bega Dairy and Drinks business. Could you just give us a sense of, you mentioned that it outperformed a bit in the first five months. I'm just trying to get a sense of what contribution that did make in the FY 2021. Look, obviously, we reported the segments the way we reported them, Michael, and haven't split out the performance of BDD. Obviously, we had a pro forma P&L for what our expectation was for BDD. Pete, Paul, I'm not sure whether we want to go into too many specifics around the outperformance. It was a pleasing outperformance, I wouldn't say that it was, what's the right word, overly excessive to what we actually predicted in our initial forecast. Pete, Paul, I'm not sure whether you've got anything to add to that. I think that covers the sentiment, Barry. It's worthwhile Michael just pointing out, too, that it's off the back of some good growth in both grocery and also in the route trade channel. No doubt, we got a good boost, too, with the Australian ownership and that sentiment coming through actually was very positive, particularly in that route trade. That provided some of the impetus for that improvement in the result. That's momentum that we're carrying into FY 2022 as well. Just pleased to be on that side of the ledger. Then we can come through with these cost synergies that Pete mentioned earlier that will allow us to achieve these targets that we've set ourselves. I think you've mentioned the 36, I think, synergies this year and maybe 41 in FY 2023. Were there many synergies banked in the 2021 year? We had some, but there's also the cost of executing those synergies, which I think, and Pete correct me if I'm wrong, but the cost of executing a lot of the synergies, which is in the normalized result, were offset within that five-month period, Michael. Michael, we went into the 100-day plan and we really executed probably in the last two months of the year, a lot of those organizational changes and so forth. If you do the math, we were looking to achieve, we wanted to enter the year with sort of AUD 2 million-AUD 3 million of run rate per month, and we have. That's happened really in the last couple of months. We brought it at the end of January, did our planning around February and March, and then sort of really executed over April, May, June. There wasn't a lot. Just going forward, that earnings split for BDD, it's sort of 80/20 EBITDA line is what we should be factoring in? First half, second half. the seasonality split between first half, second half. Yes. Still very strong. We obviously didn't have that impetus in the result. The profitability of the business looks significantly different now on Christmas. All right, great. Just the final one from me. Barry, you've got sort of over AUD 400 million of land and buildings on the balance sheet now. I'm just wondering, strong property markets out there, you got opportunities in front of you for either selling property outright or rationalizing your footprint a bit/maybe sell and leasebacks? Just wondering how that might pan out over the year. Michael, obviously we are happy with the sort of progress we're making, strengthening the balance sheet through the operational performance that we're getting out of the business. It is very good to have that strong property portfolio. It does present us with options. I think the right way I would put it is that the properties that we see as long-term required for running this business, we're very pleased to own them. If there are other opportunities out there, that we'll obviously consider them. I think it's good to be in a position to have options. It's not something that we're feeling that we urgently need to do, but it does present an option for us. As I said, we would probably take the philosophy we've taken for quite some time now that core assets required for the business we like to own, but some that we might identify as non-core or non-long-term, we would consider other options on. Great. Thank you very much. Please go ahead. Hey, guys. First question, the debt situation was very pleasing and a lot better than what I thought it would be. I just wanted to check, at the time of the acquisition, you'd mentioned, I think the numbers were AUD 21 million of upfront integration cash costs and then AUD 60 million of transaction separation cash costs. I just wanted to know if many of them were incurred in the second half, or are they more likely to fall in FY 2022? Yes, Phil, the net debt from the pro forma that we put out when we did the listing is obviously considerably higher than where we ended it. I guess that the big swings there were that when we were doing that pro forma, there was about AUD 80 million of debt-like items on the balance sheet of LDD, and that related to leases. In negotiating the final bank agreements with the banks, we negotiated that we didn't have to include leases in net debt. That was removed. That's one of the reasons why the net debt is lower. It was about AUD 80 million. We've just had better cash benefits. We didn't have the RB settlement payments built into the numbers. We didn't have the Kraft settlement built into the numbers. We've underspent a little bit on CapEx towards the end of last year. There's been a raft of things that have helped our cash build. We're not that far off. We're pretty much on target with our spend. Obviously, there was about AUD 60 million of transaction-related costs around stamp duty and so forth. We're pretty much on target with that. The reasons for the net debt benefit were what I sort of alluded to first time. Oh, okay. I know you've taken restructuring costs through the P&L, but I just wanted to understand if there's the cash payment of those costs. Is there a material amount to come through in FY 2022? No. No. Okay. Cool. My second question, perhaps to Barry, was twofold. One, the farmgate milk prices seem to come as a bit of a surprise. They started off rational in early June and then sort of got a bit crazy towards the end of June there. Maybe I'd just be interested in your thoughts from, as a dairy industry person, what might have driven that. The second part of the question is just around, I'm just trying to understand the risk for the remainder of FY 2022. What would happen if commodity prices were to come off from here? Because, I mean, I don't think you can change farmgate milk prices now until next season. Just wanted to understand how you're thinking about that. Oh, look, Phil, I think your summary is pretty good. I think, we were very comfortable with where farmgate milk prices started during those initial announcements, and we were very comfortable with the announcement we were able to make, which needed to include a harmonization of prices between what were traditional Lion farmers and official Bega farmers. Look, the reality was we had 2 new entrants in the milk procurement market that added some additional pressure, which probably also saw that we hadn't seen a lot of milk growth despite a good season and reasonably good prices. Companies were all in a position where they didn't really want to lose milk. That meant that, I guess we found our competitors pushing themselves reasonably hard to make sure that they retained the supply they got in a very heated, competitive environment. We felt we had to be there to ensure that our suppliers were receiving a competitive price. From my perspective, Phil, I get that graph that Paul puts up, it's not the first time that we've seen pricing in farmgate prices push above commodity pricing as people have wanted to secure throughput, indeed secure the milk required for their market. Yes, it got very willing, it then settled down, we did lose a little milk through that because we couldn't justify ongoing any further in the pricing. In the end, we now manage our milk supplies across our network, which is one of the advantages that we obviously have through the new acquisition. Yes, very heated competition. I suppose the other thing I should say is that that also probably still reflects the position where there is overcapacity in the industry. It's still not fully rationalized, and that causes companies to need to keep those factories operating, if you like, and therefore the competition naturally follows. My perspective is that we will manage that. Obviously, as we think about pricing, as we set pricing, we set it with a very close eye and a lot of experience around what we think the international commodity markets will do and indeed what currency will do. Obviously, in terms of the pricing that we ended up settling on or not moving any further was where we thought that our risk tolerance was as much as we were willing to take. We will now manage through the rest of the year. It is notable that we've seen some downturn in global commodity prices, but that's also been aligned with some downturn in currency as well. All part of what we're very used to managing, and we will continue to do that throughout the year. Yeah, very competitive environment, but something that we've experienced in the past and managed in the past. Sure. Last one, if I can quickly, just CapEx outlook for FY 2022. Sorry if I've missed it in the presentation somewhere, but can you give us a broad steer on what we should be thinking from a CapEx point of view? I might throw to Paul for that. We were a little down on what our normal run rate on CapEx would be this year, which obviously also in terms of where our debt landed in terms of cash flow and whatever, that did help. I think we will see a return to more normal CapEx. Paul. Yeah, thanks, Barry. G'day, Phil. As Barry Irvin inferred, we'll see capital much more broadly aligned with our depreciation rates into FY 2022. Pete referred to before when he talked about cash flow and debt that, in the second half of last year, we did have a somewhat sort of an underspend on capital, as we were dealing with a range of other initiatives and some COVID-19 disruptions delayed some of our capital projects. We'll catch up on that. We've also recently approved a number of significant projects across the business, which have well and truly kicked off now, and we fully expect to hit that target capital expenditure in that depreciation range for FY 2022. Great. Thanks, guys. Thank you. Your next question comes from Josh Kannourakis with Barrenjoey. Please go ahead. Hi, Barry, Paul, and Pete. Thanks for taking my question. First one, just around the branded segment, some good growth there. Keen if you can give us a little bit more context around that platform, when you think about how mature maybe some of the new branded products could be, also just some context around the existing ones in terms of any repricing opportunities there. Thanks. Paul, are you happy to take that question? Absolutely. Just bear with me, Josh. I am just trying to operate about four screens at once here and getting my slides back up in order, to go to the slide that actually covers off the I think I have lost it somewhere to bring it up here in a Just bear with me a tick. It is worth noting. Josh, can you just provide some clarity on your question regarding pricing? Just what you are? Yeah. Sure. The first part was just around how material some of the new brands can be and how material you think that can get to over time of that segment. The second pricing question was just with regard to, in terms of selling into the retailers, whether you see any potential for inflationary or pricing adjustments that you might be able to put through across any of the branded products. We're certainly on the second point. We are certainly seeing across multiple channels some upward pressure on pricing with the milk pricing increasing into the year, and that was the subject of Phil's earlier question, too. We are seeing that across multiple channels starting to flow through. Also seeing that, and that's a bit of a trend that's been increasing over the last sort of 18-24 months, where we've seen a fair bit of soft commodity price increase across the globe, but also domestically seeing food price inflation through the major retailers. That's certainly seen that where we see much stronger value growth in our core brands than we do volume growth. We're actually seeing that's over-indexing. We're certainly seeing that flow through. In terms of where we look for opportunities for further growth in these categories and how we're thinking about them, a lot of them are operating, if I think about yogurts and flavored milk in particular, good solid growth categories. I mean, these are categories, Josh Kannourakis, that are growing at around 5% a year. If we maintain our market share and pick up that growth, that's a very good outcome. Our plans are in place through product innovation and increased ranging and distribution to exceed those market growth rates in those core categories. As we bring the businesses together, the ability to sell more products off the back of a truck into more customers is also going to help with that. Certainly very excited about how that will progress and a lot of those initiatives have already kicked off in the last six months or so. It's pleasing. Pricing will be part of that, but we've got some pretty good margin products here and volume is going to drive the bottom line, in many cases, a lot more than pricing will. Got it. Just in terms of the first one around some of the new branded products you mentioned, B honey and a few others, just interested in terms of how you're thinking about new product rollout or potential bolt-ons within that segment? In which segment? In the spread segment, you mean? Yeah. Well, across the broader branded segment. Yeah, absolutely. Yeah, look, certainly. Look, it's always hard to just come up with a new brand and how do you actually differentiate into what is often either mature categories or particularly competitive markets. B honey's been a real success story from us in that sense. It's worth just reflecting on that for a moment. The point of differentiation around the Purple Hive Project and the work the team's done there to establish that integrated supply chain has really served us well as we've seen that growth. I mean, we've picked up in just over 12 months, 10.5% market share in Coles. We've seen key competitors with the likes of Capilano and Beechworth probably drop 3 percentage points to 4 percentage points in market share in that particular retailer. That's been a very pleasing progress. Brands like Happi and 180 Nutrition in those sort of emerging and high-growing markets are also good. In the more mature categories, bringing in new brands is certainly a challenge. That's where we look to the product innovation that I mentioned earlier. It is worthwhile noting, though, Josh, that that distribution network that we have, the daily contact with 30,000+ customers, the systems that we've got in place, and of course, the actual physical network, does allow us to look at opportunities to either license or manage third-party brands as well, which provides other avenues for growth, particularly where we're talking about complementary products to our product mix, which is something also that Pete and the team are looking at. Great. Well, yeah, you answered part of my next question just around some of the synergy potential within Lion. That's on the chilled distribution network. In terms of some of the other areas outside of that initial synergy estimate, you've obviously had the business for a little while now. Would you be able to talk us through, just to give a bit of context, around some of the other areas you're looking at that you see some more medium-term potential for opportunities, both revenue and cost? Look, on the revenue side, certainly the international market, again, very complementary product mix with a number of the fresh branded products in the Dairy and Drinks portfolio with our more predominantly food service product, but also consumer products in the previous Bega Cheese business. With the acquisition, Josh, we've got strong representation in market with our people now, particularly in Southeast Asia. Being able to consolidate those businesses and start selling some of our cheese products, for example, through those channels and through those customers that are serviced by the Dairy and Drinks business, has been something that we're able to turn on and exploit reasonably quickly. Good opportunities in the export market. I think in the domestic market, as you mentioned, I've partially answered that question in my earlier response. On the cost side, a lot of that's been outlined. We are seeing, I would say, this picks up on Phil's question earlier on capital. We are seeing opportunities for capital projects that were not on our radar screen, and I think would be, it's fair to say, they're the result of a backlog of projects that have built up over the last couple of years while the dairy drinks business has been in the sale process. There's some good operational improvement capital projects that have been servicing in recent months. If we don't get to them next year, we'll certainly be getting to them into FY 2023, and they'll be able to provide some of those further cost efficiencies ongoing for us. Great. They're sort of similar returns on invested capital that you've targeted in terms of your previous hurdle rates? Certainly, I would say they're better than our hurdle rates, some of these projects. I'd put it in the category, Josh, of multiple small to medium-sized projects. They tend to suck up a lot of resources, and you can never really sort of exploit them as quickly as you may like to. We're certainly building up the plans around those projects. As I said, we'll get into those partway through next financial year, but also extend those into the following financial year. They're projects that they can provide two to three-year payback, some of these projects, we'll certainly be exploiting those. Okay, great. Thanks, Paul. Thank you. Your next question comes from Jonathan Snape with Bell Potter. Please go ahead. Yeah, thanks. Hey, guys, just a couple of questions, if I can. First of all, just around milk supply. Are you able to quantify what your milk supply did, I think firstly this year on the traditional Bega business? And then I think, Barry, you made a comment that you let some milk go into next year. How are you guys seeing your milk supply growth year-on-year into FY 2022? Across the combined business, Jonathan, we'll be down a little in terms of year-on-year comparison. We'll be down a little this year compared to what would've been the combined businesses in the previous year. As I've said, I think, we've got to be pretty responsible about how we manage milk pricing. We're comfortable. Whilst we don't sort of express exactly, it's pretty competitively sensitive how much milk is moving around the countryside at any given time and who it's with. We've had a small reduction in overall supply that we will manage within our network. Okay. Look, can I just ask, because when I looked at what you're in the market for this year, you guys had some volumes that you were looking for in LDD, or the old LDD, but looked lower than what they traditionally would have taken in. So it looked like there was some milk substitution going on where you were maybe moving milk from your existing supply base into Lion. I know you put your cost numbers and your synergies and you say you're on track, but if memory serves me, you didn't factor in a lot for optimization milk pools back at the time of the acquisition. And certainly it looks like that's far more advanced than maybe where you were at that point. Is that a fair comment? I think we're probably around about where we expected to be. It was around that milk management side, Jonathan. It wasn't so much about milk pricing, it was about how we manage milk across the network and the products in which we sell them to. I think the two things I would say is that where we saw the particular competitive pressure, if you like, was in the southern states, in that southern milk. We actually gained some milk Lion Dairy and Drinks areas, if you like, which obviously assists in terms of, even though it's more expensive milk, it does assist in terms of freight and milk movements. It was really in that Victorian region where we saw that really heavy competition for milk. Elsewhere, we were comfortable with where it ended up, and as I said, we've added a little bit. I would sort of rather term that we are where we expected to be on milk management synergies. Paul might have something to add to that. G'day, Jonathan. Just picking up a question that was asked earlier, I feel it's worth noting in that southern region, it was very competitive. This has been well-publicized, we had Coles extending their reach in the market and buying milk directly for their cheese business, and that was previously sourced through one of the processors. That did cause a fair bit of switching going on with milk supply, but it also intensified a lot of that competition. I know you track global and Oceania commodity pricing pretty closely, and it's worth just making two other points. First, we are seeing a much wider spread in product mix returns between what you might call your base commodity returns, which is fundamentally skim and butter and then cheddar and whole milk powder as the three core base commodity product mix returns. If you have a look at the returns on those three, Jonathan, then compare them with what drives a lot of our returns on our manufacturing business and the product returns, which is fundamentally around high-fat cream cheese and high-value protein products. That spread has increased reasonably significantly over the last 12 months, which for me, when you look at commodity markets over the last, particularly dairy, over the last 10-15 years, normally when you see high dairy prices or high commodity prices, that spread actually narrows, but it's actually increased, which is quite interesting. What we have seen is if you were to apply the more expensive liter of milk that you might be able to go and buy in the market and apply that to that lower-returning base commodity price, there's hardly a dollar in it. We're at the point saying, "That's where we're at. We don't need more milk. We'll let others take that milk, and if they can make AUD 1 out of it in that commodity price market, then good luck." We'll just sort of sit back and focus on other parts of our business. That's fundamentally what we've sort of seen go on in this market, and it'll be interesting to see how that plays out over the next 12 months. Great. It is good color. Look, another thing, can I just pick up, maybe this is one for Pete, around all these redundancies and this IWS cost that you took above the line in the normalized result, which I think you said was AUD 10 million. I don't know if you quantified what the redundancy number was, though, that you took. I was just trying to get a sense if you could provide that. The other question was around some of the movements in the balance sheet, particularly in the provisions and bad debt expenses. It looked like that bad debt provision was up about AUD 9 million. It looked like there were a bunch of other provisions that jumped about AUD 25 million if I have a look at it outside of the employee components. I guess I'm just trying to figure out those movements. How much of that is simply the acquisition accounting for the BDD acquired business in terms of things coming over from one balance sheet to another relative to maybe other provisions, restructuring provisions, that sort of thing, that you push through the P&L as well, and whether any of that was in the normalized number? G'day, Jonathan. If I go to the first question, the redundancy payments were for the organizational review that we started last year. There was about AUD 4 million of those in this year's result, that related to the work that we commenced around getting our costs globally competitive in 2020. There was about another AUD 4 million-AUD 5 million of costs. We removed about 60-70 heads from the Ridge Street Bega plant during the last financial year, FY 2021, when we consolidated the individually wrapped slices line down to Strathmerton. Those were the two sets of redundancy costs that we've got in the normalized result. Just with provisions, fundamentally, the BCL balance sheet didn't really change. All of those additional changes were due to the new balance sheet that we brought in. Just on receivables, Lion Dairy & Drinks does have a higher provision for doubtful debts because it has that exposure to a lot of smaller customers through its cold chain network. That would be the change there, but most of those provision increases would be due to the new balance sheet coming across. Okay. If I'm thinking of those one-offs that I think you've called out, all those redundancies and integration costs, I think it was IWS. Is that the term? Yep. Didn't quite catch, but yep. That slice line that we took down to Strathmerton. Those costs won't reoccur next year. Okay, is there other ones that we should be thinking fill the void? You guys are constantly, you know looking at your cost structure and making changes, obviously your operational footprint is changing every other month by the sounds of things. Not that we've got in our numbers. Okay. For FY 2022, Jonathan, will mostly be around, we've done the big organizational piece now. 90% of that work would be complete. It'll really be around, we're looking at rapid procurement around packaging services. Yeah. That's where most of the benefits will come from in FY 2022. There's no provisions or balance sheet items in there for those. Cool. Great. Just on your operating cash flow, I noticed again that you reduced the use of the warehousing facilities in this result, and I think it looked like it was about a AUD 16 million cash outflow in this result. I think you reduced it as well last year. What was that for, Jonathan? Sorry, I didn't catch that. Oh, those inventory receivables warehousing facilities that you use, the off-balance sheet. Yep funding. It looked like it came down from AUD 153 to AUD 137, so it's about a AUD 16 million drain. It's been a feature for the last two years that you guys have reduced the use of those off-balance sheet facilities. How should I be thinking about that going forward? Obviously you had a great cash flow result, but it would probably have been even better if you'd kept utilizing those facilities. I'm just trying to figure out how I should be thinking about your use of those off-balance sheet vehicles into 2022, 2023. I have to go into that in a little bit of detail for you, but nothing's fundamentally changed there. That's just the flow of transactions or sales. Nothing's fundamentally changed. I would assume, certainly, I think in our modeling, we would have that as being consistent through the FY 2022 year. Cool. Look, I just want to pick up on the CapEx as well. You made a comment it would be similar to D&A this year, and in the second half it looked like your D&A stepped up quite a bit, which is obviously with the BDD business coming on. When you look into 2022, it looks like you're heading towards a number close to AUD 105 million of D&A. Is that far off the mark? Oh, yeah. Oh, yeah. At this stage. ± a little bit below that. We've probably got AUD 75 million-AUD 80 million locked in, there's a couple of other projects that have come across the table around restructuring our footprint at Tatura with RB, which Barry talked about. There's a couple of other projects, but it'd be somewhere between sort of AUD 75 million-AUD 95 million, I would think. Okay. Should I be thinking D&A then is going to be heading up towards that AUD 100-AUD 105, just annualizing the second half and BDD? Wouldn't have thought it was quite that high. Okay. Not far off it. Cool. All right. Thanks a lot, guys. Appreciate it. Thanks, Jonathan. Thank you. Your next question comes from Mark Topy with Select Equities. Please go ahead. Good morning, gents. First question, just around the commodity pricing in global markets. It's sort of bouncing around and then you factor in Australian dollar. I'm looking at the charts to May 2021. I'm just wondering how you're seeing things, and China demand's been very strong over the last 12 months. Just in terms of the forward demand, how are you seeing things globally? Mark, obviously, we watch this very carefully. I might throw to Paul to comment, but I would probably just reinforce what I said earlier. We are seeing those commodity prices ease a little bit, but we're also very pleased to see the Australian dollar easing. At this stage, we're not seeing anything outside the perspective we took as we were initially if Paul wants to add any more to that. Good day, Mark. Look, it's always a challenge with a crystal ball on this one. We have seen prices have sort of been tracking down since around about mid-March, and as Barry said a couple of times, exchange rates certainly offsetting a lot of that decline that has occurred. We've got to remember that that's come off some fairly strong highs over recent times, so still very strong pricing. Up until about, I reckon about four to six weeks ago, really underpinned by strong demand that was continuing out of China. We saw them sort of step out of the market a bit more recently, and that's been picked up with a bit of demand out of the Middle East and other parts of Asia. That's reasonably stable. What's more interesting is on the supply side what we're seeing there, just a bit of pressure across both Europe and the U.S. on the supply side. We've got actually a little bit of growth in New Zealand, but we're not seeing the sort of growth in New Zealand in the last two or three years that have really fueled the growth of that market over the preceding sort of 10-15, 20 years. That's New Zealand's interesting to sort of reflect on some of the challenges that they've got there around environmental runoff, carbon. Similar to in Australia, they've got issues with labor on farm and the ability to actually get milk production up. We are seeing on the supply side, it's just really sort of struggling to get any momentum, which is also keeping those prices where they currently are. Look, we'll continue. I don't see any major changes into the next four to five months unless there's any significant geopolitical events that we see, particularly in the region. Then as we get into the second half, again, we immediately look at the northern hemisphere supply, particularly Europe, and see what's coming through there. There's nothing at this stage that's pointing to any sort of major corrections as we see it. Great. When I look at the division now, and I suppose going back in time, we might had a better read on what the level of exports was. Is it fair to assume that bulk is predominantly exports? I'm just looking at the 21 margin on bulk compared to 20. Do you think that margin is sustainable in terms of the bulk space going forward? Maybe talk to some of the split of the products there like cream cheese that are in that category as well. Yeah, I covered that briefly in regard to Jonathan's question, too, just in terms of that spread of mixes. We are seeing that spread. The Japanese market, just briefly, they are still dealing with a bit of overhang of inventory. Just with COVID, there's been, for example, less schools milk programs, so more of their domestic production is going into skim milk powder and butter, so they're importing less of that. They've also had an overhang of ingredients that built up for the Olympic Games, and that's still, believe it or not, playing through the market, as it finds its way through. Really sort of soft demand out of that market, which is having a bit of downward pressure on those prices. Fundamentally, they still remain very strong. I'm talking about the fat-based products there and high fat and cream cheese. If you have a look at those internal sales that Pete mentioned on the segment report, that's basically bulk product that's going into our value-added business. If you look at the delta between that and the bulk sales, you're spot on. A lot of that is finding itself into the export markets. Interestingly, we're seeing the continued growth in Southeast Asia for a lot of those bulk commodities, particularly out of Koroit, a lot of the value-added powders and increasingly some of the fat-based products, too, that are really going to that market. That's also providing us with a good level of diversification. Importantly, in those numbers also, types of the lactoferrin volumes that don't go into branded products. They sit in that part of the ledger. Great. That's lactoferrin. Just on, you did talk about the cold chain at the time of the acquisition, and I guess it's slowed a tad, but does this give you an opportunity to sit back and think through the growth opportunities in that cold chain going forward, and what are your thoughts around that now? We never sit back, as you know, Mark, so I don't know if that was a trick question. We do see good opportunities to, as I said earlier, to sell more product through there, of our own product range and across the entire range of products, but also some of these third-party opportunities that we might be able to exploit. Pete's got a focus in that area on areas around automation and consolidation. There's some further opportunities there just to get our cost to serve down and get more efficient in that space. We are looking at what other opportunities are there for us to do more with our customers in that supply chain sense, including are there opportunities outside the chilled distribution network that we might want to have a look at? Who else can we partner with to really sort of strengthen and reinforce that part of the business? A lot of opportunities there, and a lot of activity going on at an operational level too, that is keeping us busy. Just lastly, when I sit back and think about the plant footprints with the number of plants you have now, how should we think about the optimization? Like, I think the Tatura plant might get some additional supply through in terms of milk this year, I am kind of assuming. Can you just talk us through the way of optimizing again, just to remind us on that point how you optimize Koroit, Tatura? No worries. The other as well. Yeah, sure. When we talk about, and Barry touched on this before when we were talking about the synergies on milk optimization, which represents about a quarter of that AUD 40 million target that we talk about. A lot of that's around solids optimization, also how we deal with spring milk peak in our fresh business and how we might supplement that with supply during the shoulder and more particularly during winter, when milk production is down. How do we sort of optimize that across that network? More specifically, we're talking about Victoria into South Australia and southern New South Wales in terms of where that optimization, we can reach a little bit into Southeast Queensland with it, but the majority of our focus on optimization is around that network. Tatura, as you know, over recent years, following the acquisition of Koroit, one of the key initiatives we've driven there is around just basically exporting cream out of the Western District into northern Victoria, as we've seen our milk volumes drop off. Those milk volumes, as you know, Mark, have dropped off through that drought period, but also as milk supply in Queensland and New South Wales has dropped down, the fresh players are coming to northern Victoria to make up the difference. Now as a fresh player, we get to participate in that process, which is a really important aspect strategically for us in terms of how we play the milk market. That ability to actually move milk around, and Tatura plays a pretty important role in that. Based up in Northern Victoria, that's going to increase. It'll be interesting to see how that evolves over the coming years, though. Yeah, a lot of opportunities there. It's everything from freight swaps to the solids optimization around cream movements, for example. If we have a look at the Lion Dairy & Drinks business, there's a nice cream business within our Lion Dairy & Drinks business. A lot of that cream is surplus cream from our fresh milk plants that is shipped down to Chelsea, where we process the cream. We can do that a lot more efficiently now with the broader network in terms of how we manage that cream complex, for example. Okay. We can take a lot of freight costs out, and we can provide a lot more stability, for want of a better term, to how we operate that business. Rather than being forced to process the cream when it's available, we can manage that a lot better within our network. One of the fundamentals, just to finish off, that you'll see, just by the very nature of the consolidation of the milk supply across the two businesses, is we will see, through that seasonality, we will see a bit more milk shifting through Koroit and Tatura during the high peak milk periods around spring. Similarly, we'll see a bit of milk drop-off in the winter months as we do that. Whereas previously, Lion would smooth that out by selling a bit of milk in spring and buying a bit of milk in winter. We'll manage that internally. As a result, we'll see less milk at times of the year through our own facilities and more milk during spring through those plants, which they've got the capacity to handle. I suppose ultimately, in terms of formula then, [inaudible], when it kicks back to have some options available or the options might sort of come along the track in terms of what your plant use there as well. Yeah. We can be a little bit philosophical and maybe we can take some time to sit back and think about that one because we've probably got a bit of time, because it's going to take a while, and Barry alluded to this earlier, I believe, for these channels and these markets to correct themselves. We've had the benefit of de-risking our investment in that part of the business back in January 2017, when we sold those assets. Four years later, we get another payday and we're well down the path of working out how we get back in and have those manufacturing capabilities in our own network available to support what business we have there. Then set ourselves up for what could potentially be, in the coming years, further consolidation on processing assets in this country. Also just good growth with customers, not necessarily solely reliant on that Chinese market. It'll take a little bit of time, Mark, to build that business right back up again. Will it get back to where it was in 2015 and 2016 for us? I'm not too sure, but certainly, we see some good opportunities for growth. We just need to show a bit of patience as we work through them. Great. Okay. Thank you for that. Thank you. There are no further questions at this time. I will now hand back to Mr. Irvin for closing remarks. Well, thank you, everybody, and thank you for the comprehensive questions from the people who have asked the questions. Obviously, as I said, we're very pleased with the position that the company has built itself into. I think I mentioned maybe somewhat emotively that we're very proud to be bringing some of these iconic brands home to Australian ownership, and we're very pleased with the progress of the integration of Lion Dairy & Drinks and the performance of the overall business. It's good to report a healthy position around our balance sheet, a healthy position around market share, and financial performance at a level that we would expect it to be at. Thank you all for taking the time to listen to the call. Just on a personal note, I apologize if there were some strange noises occasionally coming through the conference call line. I'm sure you all appreciate some of the challenges of working from home. I'll be candid and say, I think many on the call would be aware that I have an autistic son who occasionally makes himself heard at times that are not the most convenient. I apologize if anybody was getting some of those noises through the phone. I thank you for joining the conference and look forward to catching up with a number of you soon, if not in person, online. Thank you very much.