Thank you for standing by, and welcome to the Vita Group Limited FY22 full year results presentation. 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. Peter Connors, Chief Executive Officer. Please go ahead. Good morning, everyone, and thank you for joining us today for Vita Group's full year results announcement. I'm Peter Connors, the CEO of Vita Group, and joining me today is Andrew Ryan, our CFO. Before we commence, I'd like to respectfully acknowledge that we are joining today from the lands of the Turrbal and Jagera peoples. On behalf of Vita Group, I would like to acknowledge and pay my respects to the traditional custodians of country throughout Australia and recognize their continued connection to land, waters and culture. We pay our respects to elders past, present, and emerging. This morning I will make some introductory remarks and take you through an overview of the activity and financial results within the financial year ending 30 June 2022. Andrew will then step you through the numbers in more detail before I provide an outlook on the year ahead. Andrew and I will then be happy to take any questions. Starting on slide 2, as I stated in the half year results, the financial year was an extraordinary and transformational period for Vita. Throughout the period, the business experienced significant headwinds, including COVID-19 impacts from clinic closures and lockdowns, team member vaccination requirements, a client vaccination policy, team member health-related absenteeism, and increased levels of client cancellations and rescheduling. Severe weather events and flood-related issues in Queensland and New South Wales were experienced in the second half. The annualized impacts from higher than expected turnover, including some founders from acquired clinics. Additionally, significant resources were devoted to divestment of the ICT business completed in November 2021, and then to transitional services, establishment of a new ERP system for the Artisan business and other associated business processes throughout the balance of the year. Following this divestment, with management focused on the Artisan business, the team significantly progressed and developed an evolution of Artisan's business model, which we believe will enable in due course growth. Before I provide a more detailed update on the development of the programs within the business model, let's turn to the financial headlines on slide 3 with continuing operations for FY22. Total revenues decreased 13% on prior year to AUD 24.6 million. Underlying EBITDA, excluding the impact of AASB 16 leases, business stand up costs incurred in the period, legacy ICT insurance requirements and non-recurring items was down 6% to a loss of AUD 8.4 million. Net profit after tax decreased 5%, a loss of AUD 8.7 million on a reported basis. Turning to discontinued operations for the period of 1 July to 12 November 2021. Revenue was AUD 178.3 million, and net profit after tax was AUD 1.2 million, which included a gain on the sale of the ICT business of AUD 2.2 million. Together, group revenues for the period, that is ICT revenue to 12 November and Artisan revenue for the full period, were AUD 202.9 million, and net profit after tax was a loss of AUD 7.4 million. As you can see on slide 4, Vita ended the period with net cash of AUD 16.4 million and low levels of debt. Vita finalized the divestment and transition of its ICT business to Telstra in November 2021. Vita received settlement funds of AUD 107.4 million, being AUD 110 million initial cash consideration, less net working capital, net debt adjustments and including tax exit consideration based on a locked box mechanism calculated at 30 September 2021. Vita distributed AUD 90.6 million of dividends made up of AUD 4 million on 24th September 2021, representing the group's FY21 fully franked final dividend. AUD 64.6 million on 26th November 2021, representing the group's first tranche of the fully franked special dividend. AUD 22 million on 13th May 2022, representing the group's final tranche of the fully franked special dividend. The board has determined to not pay a final dividend for FY22, electing to utilize Vita's existing cash position for ongoing investment in the Artisan brand. Turning now to slide 5. Realizing Artisan's growth ambition requires continued investment in the Artisan brand and delivery of Artisan's brand promise, which provides purpose and direction for our business. In Artisan's brand promise, mastery, the artistry of you, we mean by combining artistry with expertise, we provide a tailored, safe experience in a bespoke and caring environment, working with our clients to achieve the best results, empowering them to look and feel their confident best. Turning to slide 6. In order to deliver our brand promise consistently, meeting the various needs of clients, Vita's continued with its ongoing brand standardization and optimization program, whilst concurrently developing and implementing operational frameworks that are intended to support an evolved, repeatable and scalable business model. I'd now like to take you through our progress on the key elements of Artisan's evolved business model, starting on slide 7. The team continued to standardize Artisan pricing, modality and product offering. The clinic network size was optimized to 18 clinics by the consolidation of 2 non-branded clinics on the Gold Coast into 1 new larger Artisan branded clinic in June 2022. As well as the consolidation of 2 close proximity Artisan branded clinics into 1 in July 2022, with consolidation costs accounted for in June 2022. The ongoing process of standardization is intended to enable focus on the promotion and strengthening of the Artisan brand, the development of operational frameworks within the evolved business model, efficiencies in operations and partner engagement, and consistency in client and team experience who may visit or work across multiple locations. Next, on our in-clinic client experience program on slide 8. Across all but one clinic, the team has been working to develop, systemize, and embed an evolved in-clinic client experience process built within our proprietary software, Cosmedcloud. This new process was progressively rolled out from late April to June, following a test and learn pilot. This process includes a multidisciplinary team collaboration space, enabling both in-clinic and cross-clinic collaboration on treatment optionality for the benefit of clients. A client assessment and modality system, which enables client goal alignment and ease of clinician modality selection. A systemized perpetual treatment planning process, enabling clinicians to build individualized and calendarized plans in partnership with their clients. And an automated and personalized client treatment plan communication with embedded online booking functionality and modality information links. This process is intended to repeat approximately every four months, ensuring that our clients have a continuous value-building journey at Artisan, no matter which clinic or which clinician they see. As you can see on slide nine, and within our outside of clinic client experience program, we have continued to invest in and strengthen our Artisan marketing campaigns, which include local events, focus on social presence, referral initiatives, and our loyalty program, as well as develop marketing automation with the initial phase recently launched in late August 2022. This program will progressively systemize the way we professionally manage and tailor personalized client digital journeys and offerings integrated with Cosmedcloud. Additionally, in June 2022, we launched our concierge hub, a centralized function, initially manage new client social media leads, with plans to also support client re-engagement activities, allowing our clinic teams to focus on the in-clinic client experience. Moving to slide 10. Our team member experience includes a capability development pathway for repeatable roles, which we call the Artisan Academies. Within the academy program, we have developed clinical academies designed for doctors, nurses, and dermal therapists. These academies aim to progress team members to mastery by expanding their scope of practice and consulting capability in a structured way. To help facilitate each clinician's progression, Artisan has appointed an internal team of clinical educators, each a highly skilled and practicing clinician, geographically dispersed within our clinic network. Artisan has also been developing operational academies designed for our area managers, clinic development managers, and client experience consultants. Turning to slide 11. We have enhanced our clinical governance and risk management frameworks, including developing bespoke quality and safety standards, and a clinic audit program tailored specifically for the aesthetic industry. Informed by the National Safety and Quality Primary and Community Healthcare Standards and the Royal Australian College of General Practitioners Accreditation Healthcare Standards. Artisan's enhanced frameworks will continue to support clinicians provide treatments safely and effectively. The final element of our business model is our clinic-level planning, which you can see on slide 12. Within this program, we have leveraged proprietary software and intellectual property retained from Vita's ICT business. In summary, on slide 13, Artisan's evolved business model incorporates systematic, repeatable, and scalable programs and frameworks applied within a standardized brand environment that are intended to enable organic growth, best practice benchmarking, and facilitate future clinic network expansion. Now, for a more detailed review of the financial results, I'll hand over to Andrew. Thanks, Peter, and good morning, everyone. Let's go to the continuing operations income statement on slide 14. Our continuing operations delivered revenues of AUD 24.6 million, a 13% decline on prior year as a result of several headwinds experienced across the period. Many clinics, including some of Artisan's largest across New South Wales, Victoria, and the ACT, were required to close between July and mid-October due to government-mandated lockdowns. Artisan lost over 500 or approximately 21% of total trading days throughout the first half of FY22. Additionally, our teams were required to comply with various state-based vaccination requirements, and to keep our teams and clinic locations safe, we introduced a client and visitor vaccination policy. New Omicron COVID-19 subvariants, including B4 and B5, saw client cancellations, team member absenteeism, and vaccination policies continue to impact trade throughout the second half of FY22. Artisan also experienced impacts from severe weather events in Queensland and New South Wales in half two, as well as the annualization of higher than expected turnover, including some founders from acquired clinics. Gross margins dropped slightly to 74%, primarily due to the mix of products and treatments delivered. With these headwinds continuing to impact profitability, decisions and actions were taken in the second half to reduce the cost base, while continuing to support our team and our key programs of work. Cost reduction included not replacing key management personnel and reducing the team from 5 roles to 3. EBITDA, excluding the impact of AASB 16 leases, was a loss of AUD 8.8 million. After excluding business standup costs and ICT legacy costs, as well as non-recurring items, underlying EBITDA was a loss of AUD 8.4 million, a decrease of 6% on the prior year. Underlying EBIT, after excluding the EBITDA adjustments I just spoke of and other non-recurring items, was up 2% to a loss of AUD 11.4 million. Net profit after tax was a loss of AUD 8.7 million, down 5% on the prior year. Moving now to slide 15 and the income statement for our discontinued operations. Prior to transaction completion, the ICT division was impacted by COVID-19, including store closures from mandated lockdowns, reduced foot traffic, social distancing capacity constraints, and an increase in service-related transactions. Revenue for the period up to the twelfth of November 2021 was AUD 178.3 million, and net profit after tax was AUD 1.2 million. After excluding the gain on sale of ICT of AUD 2.2 million, underlying net profit after tax was a loss of AUD 1 million. Now on to the balance sheet on slide 16. Following the divestment of the ICT business and a material change in assets and liabilities, the group's balance sheet remains strong. The group ended the period with gross cash of AUD 18 million. Current assets, excluding cash, ended the period at AUD 6.1 million, consisting of inventory of AUD 1.2 million, receivables of AUD 4 million, and other assets of AUD 0.9 million. Non-current assets consist of a security term deposit of AUD 2 million, plant and equipment, including clinic fit-outs and equipment technologies, of AUD 7.9 million, right of use assets of AUD 6.2 million, intangible assets of AUD 24.8 million, and deferred tax assets of AUD 4.6 million. Liabilities of the group are made up of trade and other payables of AUD 4.1 million, borrowings of AUD 1.6 million, lease liabilities of AUD 11.3 million, which includes a legacy commitment relating to the group's head office, provisions of AUD 3.1 million, and other liabilities of AUD 3.6 million. The group ended the period with net cash of AUD 16.4 million. I'll finish up on the cash flow statement on slide 17 before handing back to Pete. Starting with continuing operations, operating cash outflows after tax were AUD 8.8 million, primarily reflecting the trading impacts from the headwinds described earlier. Investing cash flows included AUD 2.2 million of capital expenditure directed towards fit-out costs and the purchase of aesthetic equipment, and AUD 2 million placed as a security term deposit. Net financing cash outflows from continuing operations were AUD 91.1 million, reflecting lease payments of AUD 3.6 million, net drawdowns of AUD 0.2 million, and dividends paid of AUD 90.6 million. Moving to discontinued operations. Operating cash flows after tax were AUD 15.7 million, reflecting pre-completion COVID-19 impacted trading conditions described earlier and including movements within the locked box adjustment period. Investing cash flows included AUD 0.4 million of capital expenditure directed towards the purchase of ICT equipment and a net ICT divestment cash inflow of AUD 79.8 million. Financing cash flows reflected lease payments of AUD 5.3 million and debt repayments, including the full repayment of all ICT debt of AUD 5.7 million. With that, I'll now hand back to Peter to take you through our focus on Artisan moving forward. Yeah, thanks, Andrew. Turning to our outlook on slide 18. Despite the headwinds experienced, we are encouraged by early positive indications from the implementation of Artisan's growth programs within our evolved business model. These include, on a like-for-like social media campaign basis, the centralized new client lead program is delivering up to 2 times the conversion rate compared to those leads managed in clinic. Since late April 2022, clinics within the enhanced client experience program have collectively seen an approximate 25% increase in total future bookings, whereas Artisan's single clinic not on the enhanced client experience program has seen future bookings remain stable. Approximately 59% of clients visiting clinics on the enhanced client experience program during the week beginning 22nd of August 2022 had a systemized treatment plan. Based on a rolling three-month cohort of unique clients from March 2022 to July 2022, clients with a systemized treatment plan have approximately 20% higher rebooking rates than clients without a systemized treatment plan. While it's too early to ascertain the proportion of increased total future bookings that will lead to incremental client visits due to factors such as ongoing COVID-19 impacts, including unclear seasonality, we have observed a positive trend in weekly client visits. Continuing our outlook on slide 19. In an environment of continued uncertainty, we believe it is prudent to maintain our focus on organic growth via the execution of programs within Artisan's evolving business model, while increasing our marketing investment to capitalize on available capacity within the existing clinic network. Once we are satisfied that we are consistently delivering on our organic growth expectations, we plan to recommence expansion of Artisan's branded clinic network, which is currently comprised of 14 Artisan branded clinics and 4 non-Artisan branded clinics. As we invest in roles that directly support revenue generation, we will continue to review clinic operations and indirect support overhead efficiencies. Indirect support overhead efficiency initiatives taken during FY22 and early FY23 are expected to contribute a reduction of approximately AUD 2.2 million annualized net employment savings, excluding restructuring costs. While Artisan's evolved business model has delivered early positive indications, significant work remains to realize outcomes from best practice execution. Subject to successful execution of growth programs and reduced headwinds, we are targeting monthly underlying EBITDA from continuing operations to break even during FY24. Before I finish up today, I would like to reiterate that the past 12-18 months have been unprecedented in Vita's history. The team has worked tirelessly, particularly in the past 8 months, transitioning from the ICT businesses, establishing an ERP and associated processes for the Artisan business, and developing our organic programs of work within our evolved business model, all among a challenging environment. I'd like to thank every individual who has worked extraordinarily hard while maintaining their focus on delivering exceptional client outcomes. Andrew and I will now be happy to take questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask a question. We will now pause a moment to allow for any questioners to register. There are no questions at this time, and that does conclude our conference for today. Pardon me, we do have a question from Shane Bannan with PAC Partners. Please go ahead. Hey, Shane. How you going? Good morning, guys. Just a couple quick things, if you don't mind. One of the issues you faced, I think, going back maybe half time, is holding on to your people. I'm just wondering whether you feel as though you've got a handle on that now and how that's looking going forward. Yeah. Thanks, Shane. It's Peter. Yeah, I think so. Look, people leave for various reasons, Shane, and, you know, it could be that they reevaluate their stage of life or even, in the case of families, whether they assimilate with our business or not. I think all the programs at work that we've alluded to, particularly the client experience, we're very focused on now our team, not only loving what they do and the environment they work in, but as I said at the half, finding real purpose in that brand promise and, their career progression as well as financial alignment. If we get those things right, we're, you know, confident that we'll have a really good retention rate. Right. Okay. The other issue, I mean, the broader economic picture is obviously changing for the worse. Inflation pressures on the one hand and also just general exposure to the slowdown which needs to be contained. Can you just give a color around that insofar as you see it, Peter? Yeah, look, it's really hard to put a number or an element on it. What I would say is that our clients, you know, we're probably a little bit more mature age clients in our demographic. We're a premium experience. Our clients are very engaged in their skin journey. I would think that would make them a little bit less affected by economic impacts, but it's obviously something that we're keeping a close eye on. Just lastly, I mean, I know you're a little bit outside this, but it's focus on cosmetic surgery generally. What sort of rub do you think that's got it for your business as this inquiry gets underway? Well, we welcome the fact that the Medical Board of Australia and AHPRA are conducting a review into cosmetic surgery, and they're looking into patient safety issues within the industry, including how to strengthen risk-based regulation of practitioners. Yeah. We are expecting the Medical Board to release their findings and recommendations in the near future. The board has also indicated their recommendations may be relevant for the cosmetic industry more widely. We believe this would be a positive step for the industry and that we're, you know, well-placed to meet any increased regulatory requirements. All right. Thanks, mate. Thank you. Once again, if you wish to ask a question, please press star one. Your next question comes from Charlie Kingston with CSK Capital. Please go ahead. Hey, Charlie. Charlie. How are you, guys? Thanks for taking some time. Just quick few questions. The EBITDA target for break even, just confirming underlying, so that's post-rent. Is that right? Leases? No. That'll include leases. Pre AASB 16, consistent with how we've reported EBITDA today. Yep. Okay. Then, you know, EBITDA, can you just talk a bit more about how you aim on getting there. Is it revenue growth? Is it further overhead reduction? Because as we know, you've still inherited quite a large overhead from the previous business, which is fair enough. You know, is it a combination of cost cuts, revenue growth? You know, I think you said you lost sort of 20% of your days. What sort of utilization within the clinics do you need to get to that sort of break-even level, please? Right. There's a couple of questions in there. Our primary focus, Charlie, is on organic growth through the programs that we've talked about today. Like we said, we're really encouraged by those early positive indicators. We plan to seek best practice execution of that, and that is our huge focus in our business and a whole lot of positive engagement right across the team in doing so. Really encouraged by that. Of course, we will continue to look for efficiencies in the clinics or in our support functions. Whenever the opportunities present, we'll continue to look for improvements. It's a bit of a mix of both. We do have capacity in our clinics, and particularly in the room capacity and some in our clinicians capacity that we intend to leverage, but we're not giving out the specifics of those exact numbers today. Suffice to say, we think it's prudent to grow into that capacity. Yeah, thanks. Then, you know, some of your peers, they talk about the sort of high level of free cash flow generation relative to EBITDA. I mean, can we assume that sometime in FY24 you'll actually be sort of positive free cash flow? Or is that, is that still a way off before we can get to those? You know, you've retained a lot of cash, fair enough. You still got AUD 16 million in the bank, but I'm just trying to get a gauge as to when, that cash flow is gonna stop decreasing. You know, is that enough, I suppose, to get you through to, break even? Or just any clarity around, I suppose, when that cash burn lessen maybe even start to increase again? Thanks. Yeah. Again, kind of couple of questions in there. As we said, absent any ongoing headwinds, and it depends entirely on the execution of our growth programs at a clinic level. While we're not giving specific guidance today, what we have said is, we are targeting monthly underlying break-even during FY24. Sorry, underlying EBITDA. That's really your best indication of cash. I guess, your best proxy of cash. As far as whether we have enough cash to get there, yes, we believe we've got an appropriate level of cash to execute on our organic growth programs. Okay. Just last one. In terms of the clinic numbers you've spoken, it's only gonna be organic for the time being. Do you think you can demonstrate, you know, sustained profitability on the current clinic footprint? I think it's 20 or 21 or thereabout. You know, with the size of your overhead, do you need to grow it to actually, you know, get to good solid profitability? Or can you do it on the existing, you know, can you demonstrate the benefits of scale, I suppose, of the business model on the current store footprint, do you think? I think we can definitely grow into our utilization and get to profitability with our existing clinics. As I said before, once we demonstrate consistent outcomes from the execution of our programs and consistent metrics from that's when we'll plan to recommence the clinic expansion. Our priority on that at the moment would probably be greenfield. Maybe with some micro acquisitions added into that. Coming off existing clusters would be our preference at this point in time. We still believe 60-70 clinics is possible. But again, right now, we wanna execute to best practice level our growth programs in our existing clinics and utilize that capacity that we've got. Yeah. Thanks. Just one more. Just on the competitive sort of landscape, how are you positioned? I can't say I'm a customer of any of either Artisan or the skincare clinics. Are you a lot more expensive just considering the premium offering and, you know, you've got a higher cost base, et cetera, but just on a broader competitive dynamic, how are you positioned? Are you able to charge that premium for what you deliver? Can you just touch a bit on that, please? Yeah. We position ourselves towards the top end of the market of premium bespoke experience. We're trying to have fantastic client outcomes, treatment plans, holistic multimodality. With all that, our pricing is at a premium. Having said that, we are constantly monitoring the market to make sure that we're competitive. Yeah. Some of the things like Botox from what I understand, is largely commoditized. You are confident you can still achieve a premium in what you deliver, premium pricing. Yeah. As I said, we're constantly monitoring. We get a, like a basket of clinics out there, almost like a CPI that we monitor against and regularly review and what's our positioning amongst that. We'll continue to do that. There is some pricing pressures. There's a lot of people in the industry. We do believe though that we're growing, our modality mix will shift over time. New modalities will come in, and that all represents upside for us in holding our margins, even if there is a little bit of pressure on pricing. All right. Actually, sorry, one more. I'll be a hog. But, cost pressures in terms of sort of consumables and rent and labor, what's the broad trend there? I presume it's all going up, but, I mean, by how much, please? Yeah, difficult to answer. Yes, there's cost pressures. At the same time we are looking to run as lean and efficiently as possible while supporting the growth programs. We reported today, we've taken some action on indirect support overhead, and we expect that to contribute approximately AUD 2.2 million annualized after restructure costs. From an indirect perspective, we don't anticipate the need to materially increase our level of indirect costs as we organically grow and scale the clinic network. From a clinic operations perspective, obviously, there's variable costs that we do expect to grow as revenue grows. Difficult to put an exact answer on that. As I said, we are constantly looking for operational efficiencies and running as lean as possible without jeopardizing the organic growth ambition that we have at the moment. Thanks, guys. Thank you. There are no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.