Ladies and gentlemen, thank you for standing by, and welcome to the SG Fleet Group Limited 2022 half-year results. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference to Robbie Blau, CEO. Please go ahead. Thank you. Good morning, everybody, and thank you for joining us on what's a busy reporting day. My name is Robbie Blau. I'm the CEO of SG Fleet. As usual, Kevin Wundram, our CFO, is alongside me. We have a lot to talk about today as it's been a very exciting half for our company, so I'm gonna jump right into it. As usual, I'll refer to the slide numbers as I go through the presentation. Please turn to slide number three now for a quick overview of the period. The first half of the 2022 financial year has accelerated the progress we made in the previous periods. Our corporate channel saw strong momentum across all countries, growing its customer book further. With innovation really coming thr ough and t he companies, my apologies, we have invested in recent years, growing their businesses, upsell of products and services has also progressed significantly. In the Novated channel, we've seen steady growth for a couple of periods now. Both channels have continued to face supply constraints, and while this benefited used vehicle values, the inability to deliver has meant that the beneficial impact of our growing order book will spill into future periods. This result includes four months of performance of the LeasePlan ANZ business, which we acquired on 1 September. I'm really pleased to say that its performance has exceeded our expectations. The integration process has run exceptionally well, with teams coming together quickly in the pursuit of growth for our combined business. The ability to tap into new expertise and the significantly improved scale of our business are already yielding benefits from a competitive positioning perspective. It also supports our ability to achieve cost and efficiency improvements, including from a procurement point of view. We are in an excellent position to pursue multiple growth avenues, as we all emerge from what has been a difficult macro environment, and we've set a very clear strategy to achieve that objective. Please now turn to slide number four for a recap of the period in our Australian corporate or tool of trade channel. By and large, there's been little change in the operating environment in the first half, and the same factors, including the macro situation, which I will refer to a little later, are still in play. Despite some COVID impacts, our BDM teams have taken full advantage of in-person and virtual contact opportunities to pursue the continuous stream of new opportunities arising. Six months ago, I reported that SG Fleet's Australian corporate channel continued its strong performance in the previous period, and this pattern has continued in the first half of this financial year. A significant number of new tool of trade accounts were signed up in the period, and an even higher number have been awarded verbally and are now at contract stage. Again, we had a number of large contract extensions, with some of these including longer contract terms and the inclusion of Novated services. Greater customer penetration has been a feature of the period with strong interest in all things EV related, our Booking intelligence product, our DingGo partnership, Inspect365, and our driver safety products. We've also transacted the first Trade Advantage deal in the LeasePlan book, and I'll talk more about the cross-sell, you know, through the whole presentation. We've added zero emission vehicles to government lease matrices for the first time, and corporate customers are increasingly moving their fleets from pure ICE vehicles to hybrids and EVs. Existing SG Fleet and LeasePlan customers attended a very successful EV drive day in South Australia late last year, and interest in our EV solutions really spiked as a consequence of that event. We've now integrated the two sales teams across the businesses and all new businesses placed under the SG Fleet brand. The relationship managers for the existing LeasePlan customers have also not missed a beat since the acquisition. We'll talk about the upsell potential in the LeasePlan book a little later in the presentation. Significant progress has already been made in the four months of ownership included in the first half period, in particular with bookingintelligence, which is already currently being trialed by multiple LeasePlan customers. LeasePlan Safety Solution was recently launched and is doing very well with a number of accounts already signed up and many others starting trials. Overall, the customer transition process has run very smoothly, and the response from existing customers has been very positive to the acquisition. Moving now to slide number five for a look at the Novated channel. As with the corporate channel, the Novated teams are also being brought together, adding about 12,000 vehicle units to our Novated business. The operating environment obviously still continues to feel the occasional impact of COVID-19, but consumer confidence is definitely on the up. Inquiry levels have now been growing strongly for some time. Order growth within the SG Fleet book, excluding the addition from LeasePlan, was 13%, so pure organic growth. The number was significantly higher if you include LeasePlan. Obviously, as with the corporate channel, actual delivery of a significant proportion of these vehicles and orders is delayed because of supply issue and lead times. I will talk in detail about this a little later, as will Kevin in his presentation. That has not stopped the combined teams from notching up an impressive number of new employer accounts, approximately 50 during the half. This gives us access to a significantly larger pool of eligible employees as we go forward in our Novated business. We've also been particularly successful in upselling Novated into existing corporate customers. Significant potential also exists in terms of accessory upsell within the existing LeasePlan book. I'll come back to that when I talk about penetration growth, a little later in the presentation. If you can now turn to slide number six for my comments on the New Zealand business. The operating environment in New Zealand has inevitably been impacted by the continued lockdown measures. While the economy does motor on within these restrictions, all business has effectively been conducted virtually for a very long time now. Nevertheless, there are plenty of new business opportunities out there, including a couple of very high-profile RFPs. Within the SG Fleet channel, we had a significant win with the uncontested long-term renewal of what is a very major government contract of ours. The customer requested and received an exemption from the normal RFP process based on our service levels and its satisfaction with SG Fleet over the last 10 years. Obviously, an exceptional result. It's very, very rare, if ever, that governments do that and don't actually go back to a public tender. It really does show the quality of the relationship we have with some of those customers. Obviously, our aim is to install that same service ethic across the full customer book that we've acquired and achieve the same great outcomes. We also continue to be successful with converting accounts from managed only to funded. We're working hard on achieving the same outcome in the existing LeasePlan book, where we have identified multiple conversion opportunities, including via sale and leasebacks. As was the case in Australia, the vehicle safety management tool saw strong interest as safety compliance is very topical in that market, as it is, you know, in all markets we operate. Promisingly, existing LeasePlan customers returned a marked uptick in NPS scores in our annual survey there, confirming the positive reaction we saw elsewhere in the customer book to the acquisition. Turning now to slide seven and our U.K. business. The U.K. is obviously somewhat further down the COVID recovery path, with most of the workforce now having returned to the office. The number of new business opportunities continues to grow in our U.K. business. Given our strength in those areas, I'm happy to report that once again, low-emission vehicles, large commercial assets, and consumer leases have been areas of particularly strong growth. Pure electric vehicles accounted for more than 1/3 of our deliveries in the period, and that percentage is even higher for passenger cars. Our customer win rates remain high across both tool of trade and consumer. A particular highlight in the half has been our ability to convert manage-only customers to funding, as I referred to in the New Zealand business, as well as introducing consumer leasing into existing tool of trade accounts. A very successful period for cross-sell in that business. We've also converted a number of panel arrangements to sole supply in our favor, thanks to the positive response to the services we already provide those panel customers. Again, a massive opportunity, you know, for penetration. That concludes the operational reviews on the first half. I briefly referred in all of the slides to the supply chain situation in all of our markets, and I'll now provide an update on that on slide number eight. While Kevin will be providing more detail on deliveries and pipeline in a moment, I'd like to make a few comments about how the supply chain situation has evolved and what this has meant for used vehicle values. As you can see from the chart on the slide, global production of new vehicles fell by over 15% in 2020 and remained at that level in 2021. Current estimates indicate that a return to 2019 production levels will take a further 1-2 years. However, that will not mean a full normalization of supply, as a significant shortfall needs to be made up for existing orders backlog. You know, anecdotally, I'll give you an example. In our U.K. business, Volkswagen has told us not to place a single order for the rest of this year. The allocation and build slots are done. That shows you what kind of makeup is gonna have to come in the world, you know, when things do start to normalize. For us, that means that the continued strong demand in our corporate book and the strong growth in our Novated book, deliveries will start to catch up. The pipeline, we don't think will shrink in a meaningful way anytime soon. Inevitably, despite strong order growth, this impacted our fleet numbers during the period, and the rewards for the business' strong performance over the past few periods will somewhat be pushed out into future periods. As responsible fleet managers, we help our customers manage the supply shortages by implementing extensions where required. In the reported period, this resulted in a doubling of corporate lease extensions in the SG channel when compared to the previous corresponding period. That's massive. Obviously, with the business growing its book, if we cannot deliver, we also cannot get back all the vehicles that we were expecting to come off lease. This, in turn, impacts disposal volumes. For SG Fleet on a standalone basis, disposals were down about 23% on PCP, limiting the positive impact of continued strong used vehicle values. Now, that's a pushout of the return of those vehicles. We will get them back, but obviously at a later stage. Turning to used vehicle values for a moment. Vehicle values were, in fact, stronger on average than in the second half of 2022, with new peaks reached in December at over 40% in excess of pre-COVID prices. Sorry, I think I said then, in the second half of 2021. I meant in the first half of 2022. 40% up on pre-COVID. Given the continued supply chain challenges and the considerable amount of time it will take for production to fully catch up, we only anticipate a very gradual softening of prices, possibly starting in the fourth quarter of the 2022 calendar year at the earliest. The lack of supply over the last few years also means that fewer used vehicles will come back into the market, even when supply starts to normalize over the coming years. We don't anticipate that used prices will go back all the way to pre-COVID-19 levels at any stage. In other words, used vehicle prices will still be somewhat elevated when we start to catch up on our deliveries. That's all I wanted to say about sort of the macro environment right at this moment. I'll hand over to Kevin now for a closer look at the numbers, and then I'll come back and talk about our strategic initiatives over the coming periods. Thank you. Thanks, Robbie. If you could please turn to slide 10. The results presented today include LeasePlan from the beginning of September, i.e., for four months. We presented the LeasePlan contribution separately, but I should point out that the standalone results of LeasePlan will become less and less meaningful over time as we integrate. In particular, since we are no longer originating leases for new customers in the LeasePlan entities, these leases are all being written in SG Fleet. Much like the previous half, the results for this half were materially impacted by the shortages of new vehicles, which has elevated used vehicle pricing to unprecedented levels. However, notwithstanding the stock shortages, we've been able to organically grow most of our revenue lines this year. I'll talk to these in a few slides. Exceptional performance from end of lease income has allowed us to report 19% organic growth in underlying NPAT for the year. On top of this, the LeasePlan businesses outperformed the projections on which the acquisition was modeled. You will notice as we go through this presentation that we've made changes to the revenue and direct cost categories in the P&L. This was primarily to better map the LeasePlan revenue streams with the SG Fleet revenue streams, and also to try and better group those revenue streams that have the same primary driver, as well as to separate annuity income streams from transactional ones wherever possible. If you could turn over to slide 11 for a look at the corporate fleet movement. Organically, SG Fleet's new deliveries reduced by 54.5% versus PCP. Part of the reason for that was that in the PCP, we delivered a large batch of 2,900 vehicles into one of our parcel delivery customers. If we adjust for that, our organic corporate delivery is reduced by 26% this reporting period, which was driven by the stock shortages. These stock shortages have forced our customers to extend their existing leases, and as a result, on an organic basis, extensions were 103.5% higher than PCP. The shortages have also triggered a very material increase in the order pipeline, which in total stands at 9,304 vehicles, which is more than 3 x what it was 18 months ago. It's fair to say that if we had not experienced the new vehicle stock shortages, we would have seen organic growth in the overall fleet size. Turning to slide 12 for the Novated Fleet movement. On an organic basis, Novated orders grew by 13.4% and deliveries by 10.2%, which was very pleasing. Including LeasePlan, our Novated order pipeline stands at 4,395 vehicles at the end of the year, which is 4.5x what it was 18 months ago. Touching on the Lite Fleet on slide 13. The Lite Fleet is a combination of the unfunded fleet as we previously reported, together with what we used to refer to as the Ancillary Fleet, which were those vehicles on which a reduced suite of products and services are provided. Over time, and with the acquisition of LeasePlan, the line between unfunded fleet and Ancillary Fleet has become blurred. As such, going forward, SG Fleet will combine the unfunded fleet units with the Ancillary Fleet units and disclose the combined balance as Lite Fleet. The Lite Fleet balance stood at 145,000 vehicles at the end of December. We often get asked as to why we offer this product and whether it's profitable. Some of the reasons why we offer it is because it is a way of initially getting in the door with the customer, and we have demonstrated our ability to then grow the number of services over time. In addition, it is often a way to immediately dislodge a competitor by being able to take over the management of the entire fleet while the units funded by a competitor run down. Of course, our primary goal is to convert these units into funded units, which then improves the economics exponentially. Now, while the conversion into a funded fleet is often a slow burn, the improved economics make it well worth the wait. If you could turn to slide 14 for a look at the individual net revenue streams. You will note from the top of each slide, we have explained what is included in each revenue stream. I won't go into that now, but the information is there if required. On an organic basis, net rental and finance income grew by 72.7%, driven by growth in the number of vehicles in fleet, which in turn is caused by the lack of new vehicle stock. With the LeasePlan acquisition, we now have 52,000 vehicles funded on the balance sheet with a total book size of AUD 1.4 billion. Over to slide 15, touching on the net mobility services revenue. As a result of the new vehicle stock shortages, our total fleet size has reduced by 2% in organic terms, excluding LeasePlan. As a result, the growth in net mobility services revenue was limited to 0.4% versus PCP. As mentioned above, if we had not experienced the new vehicle stock shortages, we would have seen organic growth in the overall fleet size. LeasePlan contributed AUD 8.7 million to this revenue line item for the four-month period. Turning to slide 16. Net additional products and services revenue grew by 2.8%, driven primarily by growth in Novated Delivery. This line item was adversely impacted by supply disruptions to accessory stock, which was offset to some extent by very strong performance from Trade Advantage, both in volume and margin terms. Over to slide 17 to look at finance commission. The finance commission reduced by 8.1% versus PCP, driven by a reduction in P&A funded new deliveries, as well as an increase in the overall proportion of extensions in the P&A volume. Please turn to slide 18. Consistent with previous periods, end of lease income benefited materially from the current market conditions, with strong demand for and limited supply of used vehicles sending pricing to record levels. However, in this period, volumes were materially lower due to the increase in the number of extensions and vehicles in inertia. On an organic basis, SG Fleet had 22.7% fewer operating lease disposals than PCP. Notwithstanding this, we were still able to deliver organic growth in end of lease income of 48% due to the strong market pricing. Please turn to slide 19 for a brief look at the fleet and credit provisions. These provisions increased materially as a result of bringing on the LeasePlan balance sheet. There was no material P&L impact as a result of provision movements in the period. Over to slide 20 for a look at operating expenses. There's been quite a material increase in OpEx versus PCP, even on an organic basis. Part of the reason is that the employee costs were artificially low in the comparative period as a result of just coming out of the first COVID-19 related lockdown. Like a lot of other businesses, we have seen an uptick in our staff turnover ratio and increasing wage cost pressure. Our technology costs have increased because a lot of the developments in progress at the moment relates to software as a service solution, and these are expensed, whereas historically the type of development would typically have been capitalized. It goes without saying that we will have a keen focus on operating costs in the next few years as we seek to maximize all synergy opportunities. Turning to slide 21. The net impact of all the items discussed on the previous slide is that we were able to grow underlying EPS by 23.5% versus PCP, and we secured an interim dividend of AUD 0.0832 per share, which is an increase of 15.7% versus PCP. Our payout ratio is always based on reported NPATA, i.e. cash earnings per share. However, for this period, we have decided to increase the payout ratio so that the dividend was not as adversely impacted by the deal costs incurred during the period. On slide 22, we presented the detailed P&L. I've spoken to the key line items already, so I won't spend more time on this. Please turn to slide 23 for a look at the balance sheet. Obviously, the balance sheet was materially impacted by the LeasePlan acquisition, but it remains in a very strong position with corporate leverage of just 1.1 x operating EBITDA. At the completion date of the acquisition, we were able to fund a greater portion of the LeasePlan lease portfolio in the securitization warehouse as a result of there being fewer ineligible assets than originally expected. This eliminated the need for the vendor finance facility and also reduced the corporate debt required to fund the acquisition. In January 2022, we utilized AUD 75 million of our surplus cash to further reduce debt. Finally, please turn to slide 24. Cash generation continues to be strong, coming in at 102% of EBITDA, helped along by exceptionally strong end of lease income. I'll now hand back to Robbie for an operational update. Thank you, Kevin. On slide 26, you'll see an overview of the various trends and projects we have mapped out for the coming five years and beyond. We hope that this provides you with a good sense of where and what SG Fleet will be in the medium to long term. I've already provided some comments on the supply situation earlier in the presentation. On the next few slides, I'd like to delve a bit deeper into the main revenue and efficiency drivers of our business and how they'll evolve over the coming years. We continue to maintain the strong momentum in our businesses. At the same time, we are managing the extraction of many exciting benefits that we are reaping from the LeasePlan acquisition, including revenue opportunities and the contribution it will make to our overall drive to improve cost efficiencies, as Kevin has talked about. In addition, we have our ongoing innovation efforts and how they help us grow our offering and achieve higher penetration within a continuously growing customer book. This is further supported by selective investments in additional innovative capabilities. Of course, all of this occurs in the context of an industry that we believe is likely to see further consolidation over the coming years. On slide 27, we map out some of these trends and projects from the perspective of how they contribute to our profitability over the coming years and as we emerge from the COVID years in a very strong position. There are, of course, the business as usual revenue and efficiency components. We'll continue to drive growth, including from the capabilities we are investing in, such as Carly and DingGo. We'll continue to focus on cost control and digitization, as I will demonstrate a little later. Over the next five years and beyond, we will see additional developments that will shape the way we grow and operate. We are obviously well underway with the integration of the LeasePlan acquisition, and while the majority of cost synergies will be extracted in years two and three, we are already leveraging our greater scale and generating benefits now, as I'll explain in a minute. This acquisition is already fundamentally changing how we operate as well as our competitive position. In the lead up to the full synergy extraction, we also anticipate that we'll start to see a gradual normalization of our operating environment, particularly from a supply perspective. This will allow us to catch up on the significant amount of deliveries resulting from the strong tender win ratios we've been reporting over the past few periods. Of course, as we accelerate these deliveries, we'll also see a corresponding uptick in disposals as the current high level of extensions will start to abate. At this point, we anticipate that the conclusion of the LeasePlan integration will coincide with, and indeed further facilitate the acceleration of growth in our mobility services range. As I'll explain later, innovation in that space is being stepped up and as we have seen in the past year, demand for our expertise in the EV space is growing rapidly. All in all, a lot is already happening as we speak, and the buzz among the combined team is really palpable. Turning to slide 28 for a detailed update on the LeasePlan integration. Work on various areas has progressed rapidly, and many of our teams, both on the business development front and the shared services side, have now been integrated fully. The integration includes the executive team, for which we have now realized headcount synergies, and we have integrated reporting lines. This best-of-breed approach has been paying dividends across the board. Customer satisfaction has improved further, supporting acquisition, retention, and penetration. All new business regeneration now occurs solely under the SG Fleet brand, as I said earlier. On the infrastructure front, we are moving all staff onto the same software, operating, and telephone systems. Those previously working at our South Melbourne office have now moved into LeasePlan's South Wharf offices, and various offices elsewhere across Australia and New Zealand will be brought together during this calendar year. Scale efficiency is also being generated by integrating processes across many functions in the business. Our pricing and credit approval processes have been harmonized, and the new securitization program has now been running successfully for a few months. Our increased scale is also being exploited to the fullest for business development purposes. The sharing of available processes and resources is significantly improving our ability to compete for business, as well as the experience of existing customers across the book. It is obviously also generating significant benefits from a procurement perspective. I'll come back to the revenue-generating potential of the acquisition shortly. Looking ahead, we will continue the integration of our teams, expand our offering further, harmonize processes, and complete the infrastructure and system migrations over the coming few years. Turning now to slide 29. As I pointed out earlier, cost and efficiency improvements form an integral and continuous part of our efforts to enhance the profitability of the group. When we first announced the LeasePlan acquisition, we also emphasized the significant benefits enhanced scale would bring in terms of our efficiency drive. We are only at the very early stages of fully leveraging our increased scale, starting with improving our procurement and supply negotiation power to lower product and services costs, and ultimately improve our competitive position. At the same time, our greater scale will progressively help us achieve greater internal efficiencies, process improvements. Sorry, process improvements as we make progress with the reduction in the number of back-end systems, culminating with the full system integration in the coming years. This integration will facilitate consolidated cost control measures across the group as well as measurable improvements in productivity. Enhanced process automation and digitalization is and will continue to form a large part of this, and LeasePlan's expertise in robotic process automation will give an invaluable boost to our previous efforts in this space. As I mentioned before, digitization will not only allow us to improve the customer experience, but it will also yield significant cost benefits. We are confident of being able to demonstrate these improvements in hard dollars and cents in coming years, and we are setting targets to improve our overall cost-to-income ratio, as well as continue to bring as we bring the businesses together. Turning now to slide number 30 and the second component of our profitability drive: revenue growth. I've spoken to you in the past about the three key drivers of revenue in our business, structural trends towards the outsourcing of fleets, the ability to grow the customer's market share via incremental tender win rates, and the ability to widen the range of products and services our customers take up, in other words, a greater share of customer wallet. The percentage of corporate registrations outsourced to providers such as SG Fleet has increased over the past decade. As we reported in 2020, the efforts of organizations to address the COVID-19 impact by improving cash flows and fleet efficiency has supported this trend even further. Over the last few periods, w e've provided you with multiple data points showing how we've been capturing market share by winning more than our fair share of tenders we pursue and how we've increased the average number of products and services our customers source from us. Our offering has grown steadily, as we have ramped up our in-house innovation and invested in selective capabilities and the value add we create for customers. As a consequence, their stickiness has increased dramatically in parallel. I will come back to innovation in a moment. Importantly, we've also been very successful in the conversion of managed-only customers to leasing, as I've mentioned earlier. We do believe exposure to managed only is important, as Kevin said, you know, in his presentation. It provides us with additional insight into the vehicle risks we manage, and it is, as we have shown, a very fertile hunting ground for leasing customers. As I mentioned when speaking to the previous slide, the leverage we obtained from the LeasePlan acquisition is not limited to cost efficiencies alone. We also see a very clear and large opportunity for our combined tenders team to lift average win rates to those we've reported at SG Fleet in recent years. We are generating similar gains from a customer penetration perspective. We've instantly gained access to additional products and expertise from the LeasePlan team, allowing us to sell a wider product range to existing SG Fleet and LeasePlan customers, as well as to the many new opportunities we are targeting with our combined sales team. With regard to the formats, we're noting that historically, penetration rates in the LeasePlan book have tended to be lower than that at SG Fleet, particularly among larger customers. We certainly see upside potential there. As we speak, we're actively cross-selling all the products that did not require a system conversion upfront, such as bookingintelligence, Carly, DingGo, and Telematics, and the LeasePlan customer response has been very positive indeed. In fact, bookingintelligence in particular has seen strong interest with a number of LeasePlan customers already trialing the product. As you'll understand, we're excited to be able to tap into all this potential as the integration continues. We've demonstrated our progress in these areas for some time now, albeit that the supply issues have stopped us from reaping all the benefits yet, and now we've been able to add another layer of growth potential to this opportunity. Turning now to slide number 31 for a quick revisit of a few innovation topics. I've touched on these in previous briefings, basically talking about electric vehicles and our evolution towards the provision of full mobility as a service. As I mentioned, innovation and the broadening of our product and service offering towards higher value add is one of the key drivers of revenue growth, and its importance will only grow in the future. We've established a leadership position in the EV space quite some time ago with the launch of eStart. As you'll know, there's been a massive acceleration on this front in the past year or so. Our offering has now evolved, and we provide an integrated full lifecycle solution for EVs, just as we do for more traditionally powered vehicles. From sourcing and managing both vehicles and infrastructure solutions to disposal of these assets. We are currently providing these services to a growing number of blue-chip companies in various industries, as well as starting to provide to governments, as I alluded to earlier, further cementing these very strong existing relationships and in some cases opening entirely new doors with this product range. At the same time, it's become the starting point for a number of other innovations and applications that will be a part of a long-term fundamental change in mobility. This is not only in a fleet context but also for individual drivers, and we're currently also developing and offering targeted at our Novated and Benefits market. Our expertise in this area has been boosted significantly by our learnings from our U.K. business, where EVs appeared in much more meaningful numbers much earlier on. At the end of the 2021 financial year, 10% of our U.K. fleet was hybrid and 10% was pure EV. Only six months later, these percentages have increased to 13% and 18% respectively. That's a massive movement. That means we now have hands-on whole of life experience with EVs, including in terms of maintenance management and residual value setting. This will be a unique asset for us in the Australian and New Zealand markets, where EV penetration is starting to grow more rapidly off what is a low base, helped by government incentives over the past six to nine months. Not surprisingly, given our market position in this space, this has also led to cooperation requests from the major EV infrastructure players and manufacturers. As I explained six months ago, our current products and services offering is rapidly evolving into a mobility as a service or MaaS capability. I spoke about the increased use of booking intelligence in that context. We are also scaling up the Carly service as subscription is playing an increasingly important role in the MaaS environment. An area that has seen increased interest in recent times is also that of micro-mobility. We view this space as a core feature of our MaaS roadmap and accordingly have made a small investment in the Australian-born, but now multinational startup, Zoomo, which provides a fully vertically integrated e-bike and e-cargo solution. Zoomo's e-bikes are a suitable transport option for a number of our customers in various industries and not just in courier and delivery. There's also a significant retail market for Zoomo's bikes, and we will certainly explore this potential via our Novated and Benefit channels, both here and in the U.K. market. This investment is in line with our strategy to invest in know-how and expertise in areas that help us build a comprehensive and multimodal MaaS solution. It's an exciting space, both in terms of transport efficiency and sustainability, and I look forward to the learnings that will come from this cooperation. I'd like to conclude with a few brief customer case studies on slide number 32 to demonstrate how the various drivers I talked about earlier, outsourcing, market share gains, and increased penetration create growth for us. It will also demonstrate that growth is not necessarily dependent on increases in fleet numbers. These examples show the typical progression after signing a new customer, with the demonstration of our capabilities in the initial offering gradually resulting in a much greater take-up of additional products and services over time. This progression is also made possible by continuous innovation and the development of our own offerings. In the first example in Australia, following the initial fleet management and leasing agreements, we see the addition of Telematics, often the first additional product chosen as it helps achieve greater fleet efficiencies. In 2020, we then see the addition of our Mini-lease product, which we developed to address COVID-related demand, preferences, and shortages. Last year, we then introduced Novated Leasing to this customer, followed by the DingGo solution. Since the LeasePlan acquisition, we've been working on bringing the customer's Australian account together with the New Zealand one, which was previously owned by the LeasePlan business. In line with what I just mentioned, we also then saw a greater focus on sustainability, leading to ongoing discussions regarding improved vehicle selection, including EVs and the use of telematics to further improve emission levels. The New Zealand case study is an example of how a customer, after being managed only for a couple of years, follows our advice to access efficiency improvements by also introducing leasing. Both Kevin and I have talked about this topic in this presentation and in many presentations before, and here are two very live examples of success in this area. You would have heard me mention conversions from managed only to funding, as I said, on a regular basis. In this case, the resultant first funded vehicles were actually delivered during the period under report. Currently, that customer is also looking at one of our fuel management solutions. Again, a great example of the appeal of managed only accounts as a stepping stone for greater penetration. The U.K. case study is another interesting example of this. In fact, the customer previously had a managed only agreement with a large competitor of ours, and this competitor decided they didn't wanna be in the managed only space. As they moved away from unfunded fleet management, we took over the fleet management of this fleet, which we briefly shared with another provider after a change in ownership of the target. Due to our very strong performance, we were then handed the sole supply of the unfunded fleet and then a sole supply funding role over the next three years for a 3,300-unit fleet. That's a big fleet in the context of our U.K. business. I'm pleased to say that orders for close to 1,000 of those units have already been received. We're also looking to offer our Novated Lease product to that customer's employees. Again, you can see how the cross-sell you know sort of develops as we embed the relationship. These are just some brief examples of how increased penetration manifests itself with customers and how that increase is to a great extent driven by our ability to innovate and bring new solutions to our market. Clearly, with our long-standing customers, this process has been running for more than a decade, and this explains why all of our top customers now take multiple products from us, as I pointed out earlier. Moving now to slide number 33. In summary, despite the supply environment impeding our ability to convert continued strong order growth into revenue, the first half of the 2022 financial year has been a very strong period for us. The corporate businesses continue their performance, and demand in novated is growing strongly as well. The integration of LeasePlan, which as I said, performed better than anticipated, is progressing very well. Both channels will benefit from a stronger competitive position as a result. Over the past five months, we've made very good progress with combining the best of SG Fleet and LeasePlan for our customers, but also in terms of our internal processes. We continue to innovate and digitize in order to play a leading role in the new mobility environment and extract, you know, the benefits from a cost perspective as time progresses. Our company is definitely emerging stronger from a challenging macro environment, and we've set a clear strategy to create growth from multiple streams as well as enhance efficiency. Thank you all for your time today. We will now take your 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 are on speaker phone please pick up your headset to ask question. The first question comes from Tim Lawson from Macquarie. Please go ahead. Morning, Tim. Morning, guys. Thanks for taking my questions. The new disclosure is great, so well done with that. You gave us a couple examples of where sort of LeasePlan is sort of benefiting, like the scale efficiencies, and you talked through the sort of office combinations, etc. You've noticed that it's exceeding expectations. Would you call out something in particular where it's ahead of what you'd expected? Yeah, look, as you'd expect, Tim, it's in exactly the same place as we're in, ahead. It performed well in end-of-lease income. But on a general basis, we found the customers more receptive to the acquisition than we expected. There were one or two customers that we had some nerves about as we talked about when we announced the acquisition. Those have bedded down well. The team has bedded down exceptionally well. A lot of the soft things that will make the integration successful ultimately are going really well. The teams are working together. There's a lot of cooperation, and that's been in a difficult time where lots of people are not even in the office. Through what has been, you know, a challenging macro time, we've really been able to accelerate those softer issues. As well, you know, there are a lot of things in their backend and internal processes that we think are fantastic. There are a lot of things in their HR regime that we think are fantastic, things that we'll adopt across the group. All in all, you know, we've seen progress in both the soft and hard things. Both financially, you know, and across the very important people and culture and process pieces. Okay, thanks for that. Just on your production, your global auto production chart. You know, just eyeballing that looks like you're sort of saying that volume won't be back until 2019 levels until 2024. What's the sort of source of that data? Is that you, or is that coming from a consultant? How are you getting that data together? Tim, look, we're consistently talking to all the manufacturers. We're looking at formal research that's coming out of consultancies. We're looking at the formal, you know, information coming out of manufacturers. I can tell you know, firsthand without, not anecdotally, you know, January was worse than end of last year from a delivery perspective. It's not getting better quickly. You know, supply chains are clogged up, and it's not only semiconductors. It's factories, it's getting assets into the country. It's the backlogs getting bigger. You heard the example I gave with Volkswagen in the U.K. Now that's not a big issue for us in our big business here in Australia and New Zealand because Volkswagen is not a massive, you know, fleet sort of asset here. The constraints are very real and are gonna take time to wind back. The manufacturers themselves are giving, you know, in different timeframes this information. It's not consistent across every manufacturer. Don't get me wrong, we're delivering a good proportion of our vehicles, as you can see, but it's not near what we need to deliver. Yeah. You made a comment that you thought there might be some moderation in used car pricing sort of fourth quarter this year, maybe slipping into sort of first half 2023. Is that around expectation of some improvement in the new car market? I think my general thesis on this is when we see some improvements in the new car market, we're gonna see more cars coming back, so we should see some adjustment. But I don't see a massive adjustment anytime soon. Even when production normalizes, I don't see the adjustment going back to pre-COVID levels because there's a shortage of secondhand in the world because there hasn't been new fleet delivered for a number of years. Yeah. You just do your market consolidation comment. Sorry. The short answer to your question, yes, it's related to when the supply chain starts to ease up. Yes. Yeah. Okay. Just your comment on market consolidation. Yeah, you said you expect there to be more. Just can you expand that? I think there've been two massive global deals in the last since we last spoke. The LeasePlan tie-up and then a massive tie-up in the U.S. As mobility as a service becomes a bigger feature of our world and providing, you know, subscription-type products and usage-type products becomes a bigger feature of our world, this becomes a big boys game. You know, the investment in technology that needs to be made, you know, the benefit of scale is massive in that kind of environment. We're starting to see it globally. I mean, it's happening. The two deals that happened in the last six months. Yeah. Does that M&A happen domestically, while the end of lease remains elevated o r is that just a difficult thing to get agreement on the value? Look, it's interesting. We managed to navigate that matter when we bought the LeasePlan business. LeasePlan managed to navigate that matter when they sold their business to ALD Automotive. Sorry, that deal is not closed, but there's an announced transaction as you know. Yes, I think there's a way to manage all of that, if needs be, if that answers your question. Yeah. We've obviously got the contribution for the period that you've owned LeasePlan. You break out the abnormals, which is obviously right to do. Is there anything in particular there that, you know, seasonality that wouldn't suggest you just get a sort of pro forma, sort of, you know, gross up of that number for a second half 2022 contribution? Is there something else going on there that we should be aware of? Tim, the key thing to be aware of is the volume of secondhand disposals in the second half is expected to be lower because of the, you know, continued growth in extensions and inertia. You know, I wouldn't be simply annualizing that number. Okay. Thank you. That's my questions. Thanks, Tim. Thank you. Catch you later. The next question is from Richard Amland from CLSA. Please go ahead. Morning, Richard. Hi. Good morning, gentlemen. Thank you. Couple quick questions. Can you provide a little bit of just insight as to what you consider the normal environment, admitting that we're not in one right now, but on a combined basis, what's a normal environment for net VRI going forward? You've done AUD 47.6 million in the half. Clearly that's elevated, but what you know, what's a sort of a steady state sort of number? Look, it's the profits per vehicle are elevated, you know, by AUD a few thousand, and it's about a per vehicle thing. It's not about a number because it all depends on deliveries and what's coming back in every half. The question is not just to adjust the VRI number because remember when that number comes down, deliveries go up. We're making all the income we make from delivering. It's not a one number comes off and nothing else changes. The real question is, is the VRI at the moment a net positive? We think it is a net positive, but not by a massive number. Probably 6-9 months ago, we would have told you it was by a maximal massive number. It is a net positive, but not by, you know, a huge number. I mean, the implication from that is you're on a run rate of, you know, let's call it AUD 95 million this year. You'd be comfortable, you know, setting a market expectation that maybe a normal number now is sort of in the 80s rather than, you know, 60s or 50s. We're not giving any market guidance. Okay. I'll just flag that that is a big challenge for investors, and it's one of the comments that we receive back from investors is that the EOL volatility between yourselves and Eclipx is something that gives them concern. Anyway, next question. Nine, can you confirm that the interest on the lease book was about AUD 19.2 million for the half, and that's total interest less the corporate borrowings? Yeah, correct. Okay. Those numbers will be split out. Yeah. That implies that the cost of the lease book is roughly 4.5% per annum. Is that about ballpark? Look, you can do the math, but we're not gonna disclose the, you know, exact cost of funds. Okay. Yeah. Can you remind us of the terms of, you know, if we're heading into a rising rate environment, what the broad terms of the lease facilities, lease finance facilities are? It's a two-year warehouse. You know, we'll be looking to refi that, you know, before that time. Obviously, you know, we're hedging the book as we transact it every month. You know, we hedged the full book on acquisition. When does that commence? At deal completion? Yeah. Is it from September? Yeah, from 1 September. Okay. In terms of the leverage, so you've got about AUD 1.3 billion outstanding on a AUD 1.45 billion booked. It looks like it's, you know, 90% levered. Do you expect that you'll hold it around there, or do you expect that to come down over time? We've got 7.5% equity in the Aussie book and about, I think it's 11 in the New Zealand book, which is pretty. You know, we'd like to improve the New Zealand position, but over time. I think the Australian leverage is in a pretty good place. Obviously we'll look to optimize wherever we can at the point that the book is refinanced. Do you think sort of having that 10% equity is that where you think you'll have to hold it or do you think you can squeeze bit more out of it and drop that? Look, we'd like to squeeze more and drop that. Yo u know, it's very early days. You know, this is our new way forward, so we'll have to see how it travels. Okay, fair enough. Just regarding abnormals, yeah. You've got the expected ones in the first half. Is there anything that we should be expecting in abnormal expenses in second half? Well, we'll continue to incur integration costs in the second half. We will pull those out and disclose them separately. You know, other than that, you know, obviously there's you know, significant amount of system development happening in our business. You know, the key sort of unusual item is the integration cost. There's no further deal cost to come through the P&L, it's purely integration costs. Will that integration cost, you know, is it starting to go down or do you expect it to be flat for another half or two? It's not gonna go down. Certainly not gonna go down. We've just got stuck into it. There's lots of work to do. Most of the system conversion comes in the next couple of years as we announced at the deal time. Just regarding the EV commentary, I guess I struggle to sort of reconcile the broad expectation of EV with financial outcomes. I mean, you guys have pointed out that your EV, you know, the composition. The product mix of EV in the U.K. has swung materially in the last couple of years. I guess it doesn't translate really to the financials. You know, the U.K. market, your UK business is still sort of, you know. It went down year-over-year, and there's a whole heap of things that go into that. Can you give me an example, you know, a couple examples of, you know, what financial outcomes the fleet shift to EV will actually generate? Because I just see it more of a substitution effect against combustion engines rather than something that's gonna grow the pie? A couple of points. The U.K. business didn't go down year-on-year. The shift to EV itself doesn't materially change the financial impacts. We've never, you know, said that it does. It changes the composition of how we make money a little bit, but it doesn't materially change. It is just a substitution effect. The point though is that EVs are the start of the journey on the mobility journey and the mobility as a service journey, and that will change, you know, the nature of our business and where we earn our income massively. It's not the engine type that changes it particularly. Okay. All right. That's all from me. Thank you very much for your time, guys. No problem. Thank you. The next question is from Allan Franklin from Canaccord Genuity. Please go ahead. Morning, Allan. How are you? Yeah. Hi, guys. Very well, thank you. Hope you're well. Couple of quick ones. Just in terms of the cost cadence. Now, I appreciate your commentary. There's probably a bit of catch up in that cost number. Just how we should be thinking about annualizing LeasePlan numbers as well, but just thinking about the cost growth within the employee benefits line and the tech and comm line going forward, if you can provide any additional color. Look, I think I'll provide color. Kevin wants to make some whole comments on the numbers. I'll pass to him in a second. The bottom line is we've got three things going on at the same time. The first is an integration of the businesses. There will be costs to integrate the business, and then the costs will come out to way below where they were before the integration, clearly. There's certainly wage pressure like you're hearing from every one of the companies you cover. I have no doubt. It's bloody hard to employ people. People are leaving jobs, which means you've got costs to recruit. You're employing at higher costs than what current employees are, and that's across the board. There will be wage pressure for a couple of years. Then, you know, and then as we integrate the businesses, our intention is obviously to rationalize costs dramatically. Yeah, sure. No, thank you for that. Just eyeballing some of the implied net revenue margins for your business relative to how you've reported the LeasePlan, sort of quite material differences in sort of the margin, imputed margin in, say, rental and finance as an example for LeasePlan relative to the SG Fleet. Do we just extrapolate that going forward or are there any sort of shift we should be thinking about as you roll that line item going forward? 'Cause it does look like you've been generating sort of fairly material margin improvement out of your rental and finance line over the past three halves. The reason for that is because most of the regular finance income generated in SG Fleet is from vehicles in inertia. You know, so at that point in a vehicle's life, you know, the margin opportunity is higher than, you know, than for a new origination. Whereas obviously the LeasePlan, you know, being an on-balance sheet funded business, you know, their margin is representative of what you achieve, you know, over the life of a vehicle as opposed to only in the inertia period. So, you know, so that's the distinction between the two. You know, obviously over time, you know, our balance sheet will start to look more like Yeah, no, I appreciate that. I mean, secondly, just on vehicle risk margins, I mean, again, you sort of look like you're benefiting in the past couple of halves on the margin side on vehicle risk, which is understandable. But I guess if you take a step back to where you were sort of 3 periods ago, vehicle risk margin was sort of 20-odd%. Looks like LeasePlan's sort of 20-odd%. Is that sort of the right ballpark to be thinking about it from a margin perspective rather than the heightened sort of mid-20s that you're getting from your SG Fleet side at the minute? I mean, if you talk dollars, you know, in the pre-COVID period, roughly we were making about AUD 500 a vehicle. Obviously that's exponentially higher at present. We don't think it's gonna go back to the pre-COVID levels. You know, there has been new vehicle price inflation coming through, plus shortages of secondhand vehicles. We don't think it's going. Plus, we do outperform the market by, you know, like hundreds of AUD, so. It affects margins as well. Yeah. It won't go all the way back. So certainly it's a net positive at the moment. No, great. Thank you. One other quick one just on Novated. Yeah, it looks like you're sort of pointing to 13% growth in orders. Yeah, just a bit more color on that, if I may, in terms of, you know, how did that sort of play out over the course of the period? Or was there sort of a spike towards the end and/or how sort of lumpy has that growth been, I guess, with the different narrative points? It was stronger in the second half of the period than in the first half as Melbourne, you know, came out of lockdowns, as Sydney came out of lockdowns. It certainly got stronger. It wasn't lumpy, but it was, you know, there's certainly an effect of the lockdowns in that sort of lead and order price generation. No, perfect. All right. I'll leave it at that. Thank you. Thanks, Allan. Thank you. The next question is from Chenny Wang from Morgan Stanley. Please go ahead. Morning, Chenny. How are you? Yeah, not too bad, guys. Thanks for taking my questions, and congrats on a strong result. Most of my questions are being answered, but I just wanted to, I guess, touch on some of the synergies. It sounds like the LeasePlan integration is going pretty well, and maybe a two-part question. Firstly, how should we think about the upside/downside risks to that AUD 20 million synergies you guys initially flagged? The second part of that question is, you know, you guys made the point of some negative synergies with the LeasePlan acquisition as well. Has any of that been realized in the first half of 2022? How should we think about that dynamic going forward as well? Look, I think overall, look, we're comfortable with the synergy numbers, you know, we've given the market. The integration is going well. We haven't really seen any of the negative synergies come through at this point. Some of them may never come through. We've seen upsell potentially in the book. You know, so overall we are very comfortable with the numbers we've presented you guys. Just to confirm, that AUD 20 million synergies you guys initially quoted, obviously that was a net number, right? Yes. Okay, cool. That's it from me. Thanks, guys. Thank you. There are no further questions at this time. I'll now hand back to Mr. Bloch for closing remarks. Just thank you very much, everybody, you know, for taking the time. As I said, I know it's a very busy reporting day, and this was a longer than usual presentation. But we did wanna share, you know, what is a lot of very exciting developments in the business. Thank you, and I look forward to meeting with a lot of you over the course of the next two weeks. Thank you very much. That concludes our conference for today. Thank you for participating. You may now disconnect.