Thank you for standing by, and welcome to the Smartgroup Corporation Limited SIQ results release. All participants are in a 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 over to Mr. Tim Looi, CEO. Please go ahead. Thank you, Rachel. Good morning, everyone, and thank you for joining us on the call today. My name's Tim Looi. I'm the Managing Director and CEO of Smartgroup. Joining me on the call today is Anthony Dijanosic, our Chief Financial Officer. Anthony and I will provide an overview of our financial performance for the half year to June, our key operational highlights, and our progress on Smart Future, our program for organic growth. We'll comment on the current industry dynamics and then take your questions. First of all, I would like to acknowledge the traditional owners of the land on which I'm speaking to you from today, the Gadigal people of the Eora nation. As this event is being broadcast nationally, I would also like to acknowledge the traditional custodians of the various lands on which you all join this call from today. I recognize their continuing connection to land, waters, and culture and pay my respects to their elders, past, present, and emerging. Now let's turn to the investor presentation. Our results for the six months to June 2022 reflect solid financial performance. First, we delivered revenues for the half of AUD 113.6 million, up 4% on the prior corresponding period. Now EBITDA of AUD 49.4 million is in line, and NPATA of AUD 32.4 million was down 4% due to lower acquired asset amortization add backs. Second, we continue to record strong leasing leads for half one with further growth in the new lease vehicle order pipeline. Third, our Smart Future program has delivered some key digital assets despite some challenges in technology resourcing. Finally, our capital light business model means we generate a strong level of free cash flows. Our after-tax operating cash flows were at 134% of NPATA, and we have a small net debt position. This continuing strong financial position has allowed us to declare an interim ordinary fully franked dividend of AUD 0.17 per share. Now turning to page four, our operating EBITDA margin at 43% remains strong, and our interim dividend of AUD 0.17 per share is at a payout ratio of 70% of NPATA. Now moving on to page five, we recorded a 5,500 increase in salary packages. Now with the constraints in car supply, a novated leasing car park decline for the half. Now when car supply normalizes, we should return to growth in the car park. Now on page six, this shows the performance from novated leasing. Total leasing leads for half one continue to grow, with total leads up 6% on PCP, driven by an increase in digital leads of 8%, plus 8% against what was a relatively strong prior period. Our order levels have continued to grow faster than deliveries, with the excess order pipeline at AUD 14 million. The total pipeline of orders is now at AUD 18 million. Our novated leasing yields have grown 5% due to higher value vehicles being novated and stronger product uptakes. As expected, with the constraints on the supply of new cars, new novated leases as a proportion of total leases are at only 74%, a lower level than the 78%-80% recorded pre-COVID. New novated leases, when compared to refinances, generate higher margins through a higher value vehicle as well as higher attachment rates for additional products and insurances. While H1 performance is pleasing, we are seeing lower consumer confidence impacting vehicle orders through delayed purchasing decisions. This can be seen in a decline in vehicle orders versus PCP of 7%. Turning to page seven, we've shown the time frames for vehicle deliveries for Smartgroup's top 30 car models. Smartgroup's delivery time frame of around 90 days is much longer than prior year and certainly pre-COVID. The lengthy and also changing delivery schedules have meant additional rework to our pipeline in the form of credit reapprovals and logistical work to reaffirm deliveries. While 90 days is an extension to historical deliveries, it is much shorter than what is available through many dealerships. Smartgroup's bulk procurement process for some makes and models have been successful in offsetting the impact of the extension on delivery time frames for those vehicles. Now turning to page eight, we have recently relaunched the Smartgroup website. We're taking a stage approach over the next several months, where we're adding refresh tools focused on customer experience and self-education. So far, we have seen superior customer engagement through enhanced visitation data we're now getting. Longer term, it will drive greater awareness of benefits and easier engagement for online sign-ups. Now moving to page nine. We flagged a little while ago our development of a digital self-serve tool to engage customers for novated leasing. The Vehicle Sales Portal will enable customers to self-serve 24 hours a day, 365 days a year. Phase one of this digital tool will be launched in H2 on a trial basis with select clients. Turning to page 10, since we've announced Smart Future, we have delivered some good foundations for our business. What was delivered over the last 12 months will complement and improve our customer experience program. With each new asset, we'll be testing, measuring, making changes to ensure these tools improve our capabilities to drive the targeted outcomes. We also have the next set of priorities mapped out. Phase one of our Vehicle Sales Portal and enhanced Salary Packaging Calculators will be rolled out progressively. However, we are making some changes to how we are currently delivering the Smart Future program. Given the challenges we're seeing in technology resourcing and costs, we're revising the project scope to utilize more in-house resources and fewer external staff. This will extend the delivery timeframe, but it makes sense to now start developing this IP internally. Now turning to page 11. With the change in the federal government, Labor has tabled proposed legislation to abolish the FBT on new electric vehicles through novated leasing arrangements. Now, when passed, this legislation will increase the attractiveness of EVs, EV purchase through a novated lease. Now, together with the savings from procurement, savings from GST, and now an exemption from FBT, a novated lease for an EV is more attractive than ever. Smartgroup, as one of the largest novated leasing providers, will be a beneficiary of this legislation when EV supply improves. Now let me hand you over to Anthony, who will take you through the financial results. Thank you, Tim. Turning to the profit and loss on page 13, you will see that we've been able to grow revenue despite continuing global vehicle supply issues and with some restrictions to on-site client sales activities still in place for much of the half. The increase in our novated lease settlement volumes and improvement in novated yield both contributed to an increase in group revenue. Revenue for the half also includes AUD 1.8 million of one-off items related to the successful transition of our primary novated lease funding provider, St.George, to other financiers. The revenue booked excludes the AUD 2 million increase in open vehicle orders, as we only record revenue on settlement of novated leases. Our open excess order pipeline now represents AUD 14 million of future revenue, for which most costs have already been incurred. Our operating EBITDA margin remains strong at 43%. We've seen some cost inflation come through in the staff cost line, arising from a mid-2021 group-wide pay review and from increased market rates for new and replacement roles. There's been some inflation evident in the other overheads line as well. I also draw your attention to the amortization line and the add-backs below the net profit after tax line. These have reduced as acquired intangible assets are now largely fully amortized, and we will see a significant reduction in those lines in half two. Both of these lines will then be negligible in 2023. The reduction of AUD 1.1 million in non-operational cash tax benefit add-backs is the reason for the 4% reduction in NPAT, despite EBITDA being in line with PCP. Page 14 shows that we continue to generate a high level of operating cash. We successfully negotiated an upfront payment of future performance fees from St.George Bank on completion of the transition of novated leasing to other financiers. Excluding this one-off payment, operating cash flow generation would have remained high at 99% of NPAT. We are now earning a modest amount of interest income on our client floats, and this amount will increase with any further RBA rate increases. AUD 6.4 million of Smart Future costs were capitalized in the half, with the new Smartsalary website, Salary Packaging Calculator, and Vehicle Sales Portal projects all being in delivery phase. We also continue to provide a small amount of on-balance sheet fleet funding as a pilot for a handful of clients. Moving to the balance sheet on page 15, you will see that we ended the half with a small net debt position. In March this year, we returned around AUD 65 million to shareholders in the form of fully franked dividends, including just under AUD 40 million in special dividends. The 2022 interim dividend declared amounts to around AUD 22.7 million to be paid in September. With that payment, we forecast our net debt position to remain very low at less than 0.5 times EBITDA. I'll now hand back to Tim. Thank you, Anthony. Now if you turn to page 17, and in summary, we're pleased to be able to report a solid set of financial results for the half year, despite the continuing vehicle supply issues. Our leads grew strongly in half one and our excess vehicle delivery pipeline, right, is at about AUD 14 million. Total overall pipeline at AUD 18 million. Now, later this year, we'll onboard a new client with over 6,000 packages, partially offsetting the transition out of Department of Education and Training Victoria, which will occur in Q4. I am pleased with our progress on Smart Future. The latest developments will enhance our capabilities to improve customer experience, digital and simplification. Lastly, like all businesses in Australia, we are seeing some wage inflation, and the current interest rate environment is impacting customer sentiment and vehicle orders. Now, we anticipate that these challenges are short to medium term in nature. Notwithstanding these challenges, we are seeing July and August vehicle orders tracking in line with PCP. Now, when vehicle supply improves, Smartgroup will certainly be a beneficiary. In the meantime, Smartgroup is well-placed with its capital light business model and a strong balance sheet. With that, I'll hand back to Rachel for some Q&As. 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 a speakerphone, please pick up the handset to ask your question. Your first question comes from Phillip Chippindale from Ord Minnett. Please go ahead. Good morning, Tim Looi and Anthony Dijanosic. Thanks for your time. First question, just on the Smart Future program. Tim Looi, you mentioned that you're revising the project scope there. Can you quantify how much you're looking to change of that program? Then you also referenced, you know, some higher costs there. Will the overall cost of the program remain the same given that revision in scope? Perhaps you could just unpack that a little bit for us. Yeah, I think, Phil, good morning. A couple of things about Smart Future, right? We're very deliberate about what we release first and then progressively through the Smart Future program. You would have recollected a little while ago, we released some results of some of the things we did to set the foundation, whether it's, you know, revising our incentive scheme, whether it's like making our calculator more customer-centric. Those have really good results. It's really important now we progress to the next phase where we rejigged our website, we launched a Vehicle Sales Portal, we changed some of our calculators and salary packaging. Now, all those things with a tight environment for tech resourcing comes at a cost. The cost is that we have elevated cost structures for the people that we got on board, which were mainly contractors and specialists, right, to deliver on that. Now, those costs, I think going forward, are probably too much, right? Too much for the Smart Future program. Now we're trying to pivot that more in-house, recruit more staff internally, keep that IP, keep the costs to something more reasonable. I think it's also important to note that, you know, going back over the course of the last 12 months, it's been a tough market to try and get those resources. We have seen some improvement in the ability and availability of that sort of capability, and that's also a good time now for us to start bringing some of that in-house. Previously, it was really hard to source some of these skill sets ourselves. Okay, thanks. Just turning to the point of consumer confidence, which you've referenced as being perhaps a little bit softer. Just wondering about the timing on that. You know, from your observations, when did that start to really turn for you guys? Yeah, I think if you know, I'm pretty sure any bankers will give you a good chart to show the rapid interest rate increases that happened since May. Certainly what we saw in our business was that caught consumers by a little bit of a surprise. When we're having to re-quote and get people through another credit application phase, you know, quotes and credit applications that were done pre-May were redone post-May with a big jump in interest rate repayments. Certainly consumer confidence dented. We're seeing consumers delay vehicle orders for purchasing decisions. That's what we're seeing in July and certainly a little bit of it in June as well. I'm not sure when it's gonna turn, Phil, but I dare say that, you know, well, it will start to turn when we get a level of stability across, on interest rate rises. Certainly, we've been speaking to potential customers. What they've said to us is that they are taking a bit of a wait and see approach. They wanna know where their mortgage rates land so that they understand what their household budget is. The majority of our customers actually are mortgage holders. It makes sense for them to work out where interest rates are going to land. Okay. Thanks for that. Final question from me then, someone else can have a go. Just on wage pressure, you mentioned that as a challenge for costs. However, Anthony, I think you mentioned that that was a revision that occurred around the middle of this year. Is it fair to say that, not that much of your cost line impacted in the first half, from that, you know, those wage revisions, et cetera? No, on a PCP basis, we did a mid-2021 wage review. You'll see the full impact of that in half one versus PCP. Certainly, you know, we're not alone in feeling some or seeing some wage inflation around. Certainly, yeah, we're experiencing what other businesses are. Okay. Thanks, guys. I'll let someone else go. Thank you. Your next question is from Paul Buys from Citi. Please go ahead. Oh, morning, Tim, Anthony. First one for me, please. Just to follow up on what Phil was asking about there on the Smart Future program. Appreciate, obviously, I mean, everything you articulated there makes a lot of sense given cost and resource availability. Just in context of your original kind of guided timeframe, where you're pointing to that sustainable EBITDA uplift building to AUD 15-20 million EBITDA in 2024. I mean, apart from inferring that that seems to be pushed up beyond 2024, is there any more color you can add in terms of that timeframe? Certainly, it's not our expectation that. We're still targeting 15-20 in 2024. We're still confident that we will achieve that goal. It's just that some of the deliverables that we were going to roll out as part of the program will be delayed. I was just gonna add, sorry, Anthony. Paul, you know, I think during the last release, you know, we showed the market one of some of the metrics we're tracking. Those metrics, you know, those metrics we track quite regularly. We're on top of it. You know, I've certainly been very pleased about what we've seen so far. Gives us a lot of confidence that whether the calculator or the website or VSP, I think those deliverables will enhance that target. No doubt, you know, as a business, we're keeping a very close eye on the deliverables of that, firstly. Secondly, once we delivered it, how we manage that to make sure we get the right outcomes. Got it. Maybe a bit of an academic question, but I mean, that's good news that you're still holding to the target, notwithstanding some of those impacts. I mean, do I put that down to you doing better than expected on this program, or do you just put it down to you sensibly managing expectations from the start? Well, I'm not sure how to answer that, Paul. I think firstly, look, the way we're rolling out the program, it has been carefully thought through. So the things that we thought would have the biggest impact first, and the easiest thing to do was roll that first. Then secondly, obviously, as we go through the stage gate process progressively, we will get to some of the other items which the benefits probably could be a little bit more challenging. Certainly what we've rolled out to date, we've seen some really good benefits on what we're gonna roll out over the next couple of months. We should see some good benefits from as well. Thanks. Okay, and then just on your excess orders, which is AUD 14 million, obviously up from the AUD 12 million that you spoke about previously, but actually, but equally kind of flat now on what was. I think you're really at 14 in your May update. So kinda two questions. Presumably, that's consistent with what you talk about in new orders, is question one to that. Question two to that is this an impact of lower incoming, or is it impact of actually having some order book attrition, whereas in the past it's been a, you know, obviously a very sticky order book, and no doubt still is in total, but are those higher rates causing some people to drop off now on the re-quote? We're certainly not seeing any sort of meaningful change in the order cancellation rate. Yeah. No, we track that quite carefully. We haven't seen that. Paul, what it does mean is that, you know, it's just more customer dissatisfaction and a bit more work, actually a lot more work for us to do, right? What we're having to do for a bulk of the orders in the pipeline is to go back and re-quote some of those deals, and also to reassure customers that, you know, they can, that the cars are still there, it's still coming. Got it. Thank you. Last one from me, just you called up EVs, which obviously from a legislative perspective, still some question marks, but clearly, I mean, it can't hurt, can only help. I guess my question is there enough supply in your kind of customer sweet spot? If I look at the average car price that your typical customer normally buys, and it seems to be, you know, the average EV is well above that. I guess I'm just trying to understand to what extent do you see your customer base being able to take advantage of that kind of legislation, even though it knocks a lot off the price of an EV, the average EV price is well above your typical customer's car price. Yeah, no, for sure, Paul. You know, we did a survey a little while ago of probably close to 2,000 customers and one of the topics was EV, right? What they told us was that around 50% of customers surveyed said that they would be considering EV for their next car purchase. Yeah. Just as importantly, they said that the price point for EV really has to be below AUD 50,000 for them to think about it. At the moment, there's only a couple of models, right, below AUD 50,000, and compared to an ICE vehicle, they are much more expensive. While there is underlying awareness, right, and I think underlying demand for EVs until we see that price point come down, we're probably not going to see a lot of receptiveness from our customer base. That said, I know that the EV orders in our book have certainly increased quite a bit, so. A bit from a low base. Yeah. Got it. Thanks, guys. That's all for me. Thank you. The next question comes from Scott Murdoch from Morgans. Please go ahead. Morning, guys. Yeah, just interested in a few more comments around leads versus order take. Obviously, the leads are up a solid amount, but they don't seem to be accelerating from recent updates. There's one question there. Just in the order take, obviously flat to down, depending on the period. I know you've commented a bit on this, but just more interested in why they aren't converting. Is it—are they balking at the interest rate, for example? No, I think so. Hey, Scott. A couple of things, right? Firstly, I think PCP was a good period, strong period for leads. Comping against last or against PCP with a 6% uplift in leads, 8% uplift in digital leads is a pretty good result, right? In fact, we've seen leads improve from most channels, actually. That's been really good. Now, why aren't they converting? Interest rate is probably partially just one of the factors. As you know, the total cost of ownership for a car, the interest rate component is only a small bit of it, right? You gotta add in there the delays in car supply when you tell someone they're gonna wait 90 days, 120 days, in some cases more for a vehicle. You know, customers will have a think about it. They'll say, "Listen, maybe I don't need it right now. I might take a little while and think about it." Certainly, from our perspective, where we're getting leads in, we're getting quotes in, we're seeing that rate, that rate being sustained, which is good. Now, the matter of getting customers from that quote stage to an order stage is where we're seeing the bottleneck. Sorry, Anthony, anything to add? No. Certainly, very pleased with regard to the lead volumes, obviously. Yeah, I referred earlier, the customers seem to be saying, "Listen, that's great. I'll wait and see." As Tim mentioned, they're going through, and they're expressing interest and they're getting a quote, and then they're getting to that quote stage and saying, "All right, now that I know the sort of cost I'm looking at, I'm comfortable with that. I need to see what my household budget looks like once I understand the value or the impact of mortgage rate changes." It's really been communicated from those potential customers as to them waiting. Okay, thank you. Just rounding off, leads and conversion. I think in the past you provided us some lead conversion metrics, which I can't see that they're here. Safe to assume it's been probably kicked down a bit with leads up in order take flat. Mathematically, conversion has been down. Is that correct or incorrect? For sure. I think look, what we don't wanna do, Scott, is provide an update of those charts every time we see you. We'll provide it annually, I think. It's also important to note that when the actual lead to vehicle order cycle is quite a long one, and that's historical even before these delays. What you don't see is, I guess, a fully mature vehicle order conversion rate until, you know, six-nine months down the track. Certainly, what we're seeing right now is probably not gonna be reflected in the fully mature conversion rates that we would show the market. Okay, thank you. Just the order update in July, August being flat on the PCP. Just if you can remind me what the PCP was. From memory, we're cycling a weak PCP with some COVID lockdown period. Is that correct? No. What we saw last year in the second half during lockdowns was quite a dip in lead volumes. If we think about July and August orders, and again, talking to the quite long cycle between lead and vehicle order, that was a reasonable period, July, August last year. It certainly hadn't yet been impacted by the lockdowns, which impacted leads quite a lot. Okay, thank you. I'll just ask one more. I've got a few, but I'll ask one more and pass it on. On Smart Future, you've said there that there's good benefits to date, and you went for some easy wins early. Just wondering in financial terms what that means. Does that mean we're actually seeing, you know, economic benefit from Smart Future in this set of numbers, or is that yet to come? Certainly, you know, one of the figures we gave in a previous result was around the leasing calculators. We quantified that on an annualized basis, we would anticipate that adding AUD 3+ million. Obviously, that requires settlements to come through and the actual cars to be available. Certainly based on those order levels, that was the quantification we gave. Then there was also obviously the improvements in terms of the conversion metrics, which came off the back of a significant amount of work that we did in customer experience and mapping the customer journey. I think, Scott, one thing I know that, you know, it's unusual, but not to talk about benefits, but maybe not seeing some of the numbers that you gotta understand, right? A lot of things we're trying to do is to get customers to a vehicle order stage. Now, when that vehicle order settles, we'll recognize that revenue and part of the work for Smart Future, some of the benefits we're seeing in Smart Future is unfortunately stuck in that vehicle pipeline, right? The vehicle pipeline is now AUD 18 million, AUD 14 million over and above the pre-COVID pipeline itself. Okay, thank you. I've got a couple more questions, but I'll jump back in the queue. I'll let someone else have a go. Thanks. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question is from Chenny Wang from Morgan Stanley. Please go ahead. Yeah, morning, guys. Thanks for taking my questions. First one, just to clarify, that AUD 1.8 million one-off from the St.George Bank, were there any costs associated to that? The costs that were associated with that. It was a slightly bigger amount than AUD 1.8. There was some cost offsets that we reported net. The AUD 1.8 you can consider to be 0 cost associated with. Okay. Got it. Maybe just in terms of the broader credit availability, I mean, you guys called out higher rates and higher requotes. What about some of, I guess, the general access to credit that you guys are seeing? Yeah, approval rates are strong. We're not seeing any reduction in approval rates at this point in time. It certainly appears that that hasn't changed. Got it. Then, you guys called out in terms of the 90-day supply being shorter than dealerships and pointed to, you know, your bulk vehicle procurement. I guess I'm just sort of interested in terms of how you've been able to expand that and what scope there is to, I guess, roll that out more broadly. I mean, I guess the supply is kind of constrained across the entire industry. Yeah, just sort of some color on, you know, if there's any additional runway there will be great. Look, Chenny, I hate to be a bearer of bad news, but I think that bulk procurement process has been really successful. I don't think dealerships are keen for that arrangement to go beyond what we have today. Today, you know, we are ordering bulk procurement for a proportion of our settlements, which has been good. We're trying to expand it to more makes and models, more locations. Again, you know, as you know, because we are a wholesale dealer rather than retail dealer. You know, that procurement process is only being entertained by dealerships where we have really close relationships with, so. Got it. Just one last one from me, just in terms of the yield. Obviously higher vehicle prices has been a tailwind. You guys also called out, you know, the stronger product uptakes. Just wondering if you could provide a bit more color there. I mean, the key thing I was thinking about was just around add-on insurance and I guess the rebound in attachment rates after those changes. Yeah, some color there will be great. Yeah, sure, Chenny. What you've called out is exactly what it is. The deferred sales model and target market determination requirements came in in October last year. For the first part of last year, we were putting in place new processes and scripting, et cetera, so that we were very much ready to be compliant with those requirements. We saw and have seen what we expected to see. We expected to see some drop off in attachment rates as people became our sales consultants, et cetera, more familiar with the new requirements. We went through a lot of processes with regard to training and scripting, et cetera. Now that our consultants are a lot more comfortable with the requirements, we're seeing the improvements come through in attachment rates as we thought we would. Got it. Thanks for taking my questions, guys. Thank you. Your next question is from Richard Amland from CLSA. Please go ahead. Hi. Good morning, guys. Just a quick question. Everything seems to be structuring for, you know, whenever the market normalizes, and sales volumes and access to vehicle supply actually, you know, enables your business to grow. Can I ask what you guys are feeling about in terms of when that's? What you're budgeting for, what your expectation is around vehicle supply normalization? SG Fleet indicated earlier in the month that they reckon that, you know, it won't even commence until mid calendar year 2023, which means that, so, you know, it'll start the ball rolling, but, you know, 2024 is kind of the year. Can you provide some views on what you guys are thinking about? Hey, Richard. Hey, thanks for that question. I think that question comes up every time we meet with shareholders and has been going on for probably the last several reporting periods. I know that whatever anyone says historically has not been correct. Certainly, you know, I think from where we're sitting, we have given more disclosure, more transparency, but what we're seeing with our vehicle delivery timeline, as you can see there, it's, you know, lengthening. I don't think we can see any improvement in the short term, the next couple of months, certainly. Beyond that, you know, I would hesitate to give any sort of forecast. Okay. I guess the question is, I mean, you know, it appears that, you know, you're gonna sort of tread water earnings-wise until that event occurs. That's sort of I think so, Richard. I think our business is, I'd say have been impacted by these headwinds in the form or in a couple of ways, right? The first one is that, you know, we're getting less vehicle orders because we're getting less discount on new cars. Well, secondly, we're getting less people transitioning from a refinance of their old lease to a new lease. You can see that from the stats that we've given. That certainly hasn't helped our business at all, but I think once the vehicle supply comes back, we'll certainly be a beneficiary. Right. No, thank you. Thanks, guys. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question is a follow-up from Scott Murdoch from Morgans. Please go ahead. Thank you. Hi, guys. Just interested in some detail around maybe the contract profile. Just if I can have some comments on a reminder of the timing, I think you said in the last quarter of this year, of the contract loss, when that leaves us, and maybe some more insight into the financial impact now you've had a look. Just the contract renewal profile from here, just any large contracts up for renewal that we should be aware of? Yeah, sure, Scott, no problem. You know, as you know, most of our contracts are on three-five year terms. With every year, they always have contracts come up for renewal. You know, we've been fortunate over the course of the last 18, 24 months that we've renewed pretty much most of our top 20, and we've retained all our top 20, bar one, obviously, Department of Education and Training. Along the way, now we've picked up some other contracts, which is pretty good. Where we stand today is that we have probably two contracts in our top 20 coming up for renewal. One is a large health contract, and then the other one is a government contract which is a bit smaller. Okay. Thank you. Just one very last one from me. Just the AUD 14 million excess order book for the lease book. Just the AUD 14 million, was there any contracts needed to be taken out for the contract loss? Has there been, you know, like for likes, you know, a bit of a step down from that? Or is there contracts in there that might be passed on to the new provider of that contract? With that contract, Department of Education and Training, is gonna be transitioned out in Q4, under the terms of the agreement we have with the client, we'll retain ownership of the vehicles that we've ordered through our channel. After all, you know, we've incurred the cost. We're closer to the customer. The deal is locked and loaded. That will happen over the course of the rest of this year and into early next year as well. Okay. Thanks, team. Thanks, Anthony. That's it. Thank you. There are no further questions at this time. I'll now hand back to Mr. Looi for closing remarks. Thank you everyone for your time and your questions today. I know it's a busy period this end of the month, given that in the last week or second last week of reporting. I look forward to seeing everyone during our roadshow. Thank you once again for your interest in Smartgroup. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.