For the twelve months ended 26th March 2022. Thank you for joining us today, whether in the room with us or via the webcast. The results were announced this morning and are available on our website www.delarue.com. I'm Louise Rich, Head of Investor Relations, and our CEO, Clive Vacher, and our CFO, Rob Harding, will present on the results for the year to you shortly. After the presentation, there will be an opportunity to ask questions, starting with those in the room and then moving to those on the webcast. For those in the room, please wait until you have a microphone before asking a question. For those on the line, if you wish to ask a question, please do so by using the Submit Question button in the toolbar at the bottom of your screen. Importantly, before we start, I'd like to draw your attention to the forward-looking statements within the results announcement and on slide two of the presentation. Now I'd like to pass over to Clive. Thank you, Louise, and good morning, everyone. May I say it's good to see so many of you here in person after so long. Welcome to De La Rue's full year results for the 2021/2022 financial year. I am Clive Vacher, CEO. Before I start, I wanted to let you know that I feel a little hoarse this morning, but please rest assured I have taken and tested negative for COVID-19 three times in the last four days, including this morning. Please just bear with me if I need to take a water break. I would like to give an overview of our operational performance for the year, and then I'll hand over to Rob Harding, our CFO, to give you more detail on the financial performance. Our group adjusted operating profit for the year was GBP 36.4 million, consistent with our reduced guidance in January. Activity in our legacy Identity Solutions business dropped to a negligible level this year. Stripping out its impact, our ongoing Currency and Authentication divisions have demonstrated strong performance with adjusted operating profit for Currency and Authentication up 30.2% to GBP 35.8 million. Two years ago, these divisions combined generated just GBP 1.4 million on the same basis. We are seeing the benefits of the implementation of the turnaround plan flowing through. Authentication revenues rose 16.4% to GBP 90.3 million, giving an adjusted operating profit of GBP 16.3 million, a 44.2% increase on last year. Adjusted operating profitability in the Currency division increased by 20.4% to GBP 19.5 million on slightly lower revenue of GBP 280.9 million. Production of polymer substrate was up 40%, with strong customer conversions from paper to polymer, and the full impact of the GBP 36 million cost reduction plan was seen as expected. The overall improvement in operating performance flowed through to cash flow with an operating cash flow moving to an inflow of GBP 18.3 million compared with an operating cash outflow of GBP 5.6 million in the previous financial year. Net debt of GBP 71.4 million was slightly lower than expected and well within our covenant requirements and market expectations. Rob will go into more detail about the cash movements over the year. We continued to address legacy issues this year, securing an agreement with the trustee of the De La Rue Pension Scheme to bring forward the actuarial valuation of the scheme to April 2021. This led the scheme actuary to confirm that the remaining deficit can be funded through contributions remaining flat at GBP 15 million per year until March 2029. GBP 9.5 million per year less than the previous deficit reduction plan. This is a very substantial development as the new schedule of contributions will save De La Rue a total of GBP 57 million in cash outflows between financial year 2023-2024 and financial year 2028-2029, while enhancing the protections for the company's current and deferred pensioners. The profits for the year as a whole were, however, more modest than we had hoped at the start of the year. Both divisions were impacted in the second half by cost and supply headwinds, together with significant COVID-19 related absenteeism in our European factories due to the Omicron variant. Additionally, there were some revenue delays in both divisions. As COVID recedes, we are seeing some normalization of banknote print demand from the high levels seen in the early stages of the pandemic. In addition, as we move into financial year 2023, like nearly every other business, De La Rue faces increasing challenges, especially due to world events. Turning now to the outlook for the current financial year. As we set out in our announcement this morning, we feel it prudent to revise our expectations for adjusted operating profit for this financial year coming. We now expect the outturn for the group adjusted operating profit this year to be broadly flat when compared to last year. We also expect the phasing of profits to return to historic patterns and be roughly one-third in the first half, and two-thirds in the second half. Significant opportunities remain that provide upside potential to this outlook. However, these are generally balanced by further downside risks stemming from the possibility of further deterioration of the external economic environment. Since January, the global economic and geopolitical environment has deteriorated substantially, and it is this which has caused us to recalibrate our expectations for this year. Specifically, there are a net GBP 5 million of supply chain related cost increases which the company is facing in this financial year. These fall into a number of areas consistent with the current global economic picture. We have good contractual protection of our own energy demand through careful planning and decision-making, but we are seeing a number of our suppliers attempting to pass on their energy price rises to us. The rise in the oil price is particularly affecting inputs that are oil-derived, especially related to polymer and brand protection labels. Freight and logistic costs are similarly affected by the rise in the price of oil and lower global capacity due to the war in Ukraine and lockdowns in China. The availability of semiconductors is slowly improving but remains somewhat uncertain. We are working hard to secure our requirements for the full financial year and continue to make progress. As a management team, we are currently focused on mitigating the cost rises. We will pass on some cost increases to customers. In Currency, these are somewhat limited due to the normalization of banknote demand post-COVID. In Authentication, the contracts are generally longer term and the price escalations within them somewhat more modest than what would be ideal in today's inflationary environment. That said, in both businesses, we are seeing opportunities for higher pricing in a number of new bids, and have already secured some new work at higher prices. Finally, we are working further mitigations by continuing to strengthen our supply chain management. We are focusing on partially negotiating away some of the price increase demands, as well as implementing more strategic measures such as dual sourcing, buying commodities forward, and seeking further contractual protections from suppliers. We continue to monitor the various impacts of COVID-19, and positively, these are generally getting less severe over time in most territories. We only expect COVID to have a limited impact going forward, but we do continue to monitor the situation carefully. Overall, the actions we have taken over the last two years have created a resilient business with strong foundations and the potential for substantial future cash generation. As evidence for this, I would like to summarize the journey we are on, including what we have already achieved, what is ongoing, and what we have yet to solve. All of these actions will form the backbone of our journey towards consistent free cash flow generation. Over the last two years, we have tackled a number of legacy issues to put the business on a more stable basis, including selling the Identity Solutions business, restructuring the two divisions, and taking out GBP 36 million of costs, cutting the number of banknote print sites, and closing the Overton R&D center. We have extended our contracts with both the Bank of England and Microsoft. More recently, we have reduced future cash outflows to fund the pension deficit, established a new industry-leading ESG strategy, and attained ISO 37001 certification to provide an additional bolster to our anti-bribery and corruption policies. We continue to progress and mature substantial investment and transformation programs, such as the doubling in size of our Malta facility, the doubling of our polymer production capacity, and building further flexibility into our operations across De La Rue's manufacturing footprint. Our currency R&D strategy is market-oriented and focused on step changes in feature technology, as evidenced by our recent release to the market of a number of innovations that support our aim to convert the world to polymer. In Authentication, we are progressing well with implementing new contracted GRS schemes with revenue on these new programs starting in the first half of this financial year. We remain strongly focused on the substantial GRS expansion opportunities and on developing the next generation of industry leading and differentiated track and trace software. Central bank digital currencies remain an area of interest to us, and we continue to watch developments and formulate our strategic thinking. As mentioned earlier, although we've made considerable progress in driving cost out of our business, we have had to go further and deeper in response to external headwinds. De La Rue is undergoing significant cultural transformation as well. We are more focused, leaner, more open, and more aligned than before, with the business moving forward together and in an exciting way. Finally, there are other issues that remain outstanding. The current leadership team inherited a number of long-term supplier contracts that we are still living with and which are causing some erosion of margins, especially in currency. We continue to have the Venezuela receivable outstanding, and our IT systems do require improvement, and we will address this group wide at the right time. We never forget that once the business is generating sufficient cash, our priority must be to reinstate dividends to shareholders. Turning now to the markets in which we operate, and to remind you of the underlying strength of our core markets. Despite the rise of electronic payments, the worldwide demand for physical cash remains resilient and strong. Data supplied by central banks to the IMF shows significant rises of cash in circulation over the past 12 years. This is the case in the G20 countries and is even more marked in developing countries which are De La Rue strongholds. The worldwide pattern is that demand for cash continues to grow at small single-digit percentages each year. Cash demand is fueled by substantial global population growth, inflation, the fact that cash is a symbol of national identity, its need to be replaced in reasonably short cycles, and importantly, by its function as a store of wealth. Current dynamics are that demand for cash is normalizing following the COVID-19 spike in demand, but it is not declining. Current international inflationary pressures may increase demand. These factors, as well as our enviable position in polymer, mean that we feel good about the currency market in the years to come. Expanding on that last point, we are one of only two providers globally of polymer substrate for banknotes. The business case for polymer is clear. Polymer notes are cleaner, longer-lasting, and easier to recycle than their paper counterparts. They are also more secure, and with our increasing suite of security features becoming even more so. The market for polymer is growing and gaining momentum with an estimated 2 billion additional notes annually on polymer now compared to 2019. Substantial volume banknote-issuing countries are converting, some with full families, and some have started with single denominations and are expanding to others. At the same time, De La Rue's market share, measured in volume, has increased from approximately 25% in 2019 to 33% today, and we aim to capture up to 50% of the market in the next 2 - 3 years. We already have more customers and denominations than the competitor. Even in 12-18 months' time, only just over 5% of the world's banknotes by volume will be on polymer, so the opportunities are substantial. We therefore made exactly the right decision to invest in more than doubling our polymer manufacturing capacity at the time we did. The new polymer line is now operational and has started to run customer product. In the last financial year, we produced 40% more polymer substrate than we did the year before, and we expect further growth in volumes this year. Turning now to the authentication market. The World Economic Forum estimates that illicit trade is a $2.2 trillion drain each year on the global economy. Our brand business provides a range of solutions using physical and digital elements to combat the trade in counterfeit goods. We have been a supplier of anti-piracy solutions to Microsoft for over 23 years and have recently seen strong sales in other sectors as well. It is said that $40 billion is lost each year through the illicit tobacco trade, and the World Health Organization's FCTC protocol is driving adoption of tax stamp schemes to push out dangerous bootleg tobacco products from the market. Countries therefore have a double incentive to implement a De La Rue tax stamp solution. Compliance with the FCTC protocol and an increased tax revenue stream. De La Rue has been successful as the supplier of choice in a range of countries with all five of the Gulf Cooperation Council countries that have implemented the tobacco tax treaty choosing De La Rue. As you can see from this slide, 65 countries have now signed up to the FCTC illicit trade protocol, an increase of six countries since 2020, and of these 31 countries have yet to implement a scheme. While due to COVID, countries have not contracted or implemented these schemes in the time frames originally anticipated. There is a large pipeline of opportunities, and we are now seeing some good movement, both in terms of implementation and in terms of interest in new schemes. Further opportunity comes in the expansion of existing tax stamp schemes. A country may, for example, expand a tobacco scheme to incorporate drinks at a later date. Overall, therefore, we remain positive about the potential of authentication markets in which we operate. Looking now at our divisional performance in more detail. In authentication, as I outlined earlier, we have seen strong growth across the business. In GRS, we received five new contracts for the supply of tax stamps and solutions. These are typically five-year contracts for the sole supply of a solution to track, trace, and collect revenue on goods, such as tobacco or drinks in a particular territory. Implementation of these contracts, which often require the passing of primary legislation in territory, were delayed somewhat by COVID-19 restrictions, but we have seen positive movement in this regard in recent months. In addition, contracts won in previous years produced strong revenue, with a full year of revenue seen from the Ghana Revenue Authority and the HMRC Tobacco Track and Trace system. Brand protection also had a year of positive growth. We saw strong revenue from the information technology sector, having announced that we had renewed our contract with Microsoft to protect their products for another five years. In addition, sales of Authentication solutions to the pharmaceutical industry and to the vaping sector were strong. In September 2021, we announced the substantial expansion of our manufacturing capability at our Malta site, due for completion in 2024. This will more than double our capacity for the manufacturing of Authentication labels to address this growing demand. Lastly, we began to supply ID pages for the new Australian passport towards the year-end. This is another ongoing contract with a full year's demand in financial year 2023. In Currency, we saw a continuation of customers switching to polymer. This trend included the completion of the full series of the Bank of England notes with the release of the new GBP 50 note, a new series of six polymer banknotes for Jamaica, a BHT 20 note issued by the Bank of Thailand, and the new GBP 100 note issued by the Bank of Scotland, who became one of the early adopters of De La Rue's new holographic foil stripe security feature. In addition, and most recently, in February 2022, we launched Safeguard Assure, an embedded covert security feature for polymer, which can be detected by central banks even if no other aspect of the banknote is remaining. The launch of Assure makes Safeguard the most complete banknote substrate available. In addition to the continuing trend of paper to polymer conversion, we continue to drive rationalization and flexibility across our banknote printing portfolio. We have reallocated a number of key assets from our Gateshead facility to other sites and have agreed a pay-per-use agreement with the Bank of England for the use of their equipment for export work from our Debden facility. To round up, Identity Solutions revenue has, as expected, dropped substantially this year, and going forward, it will deliver limited revenue and profitability. Before I hand over to Rob, I'd like to take a moment to update you on our efforts in respect of responsible business. As our purpose is to secure trust between people, business, and governments, and given the nature of our business, responsible business or ESG touches every area of what we do. We are committed to leading our industry on environmental sustainability, including submitting targets to the Science Based Targets initiative to reduce our greenhouse gas emissions consistent with keeping global warming below 1.5 degrees. We have committed also to being carbon neutral in our own operations by 2030. Undertaking business responsibly is, however, broader than just looking after the environment. At De La Rue, we promote an inclusive culture that values diversity and where health, safety, and well-being is a top priority. The overwhelmingly positive responses that we had to our most recent employee survey are testament to our efforts in this area. We have a strong resolve to protect human rights in our own business and in our wider supply chain. In addition, we have a strong governance system which helps us deliver on our responsibilities. The Code of Business Principles, which all employees must adhere to, sets out the core principles of how we behave and work. This, along with much more information on the way in which we undertake business responsibly, is available on our recently expanded website. Looking briefly at some of our recent achievements in sustainability, we now power our U.K. sites exclusively from renewable sources. We met our KPI last year of increasing manufacturing efficiency by reducing our energy use per ton of good output by 7.5%. We recycle all of our U.K. polymer waste, and our use of water is down substantially over the last four years. For these efforts, we have been rewarded for the second year in a row by being named in the top quartile of Europe's climate leaders in the Financial Times' Statista survey for the second year running. This year, we were ranked 41 out of 400 companies across Europe. Now I will pass over to Rob to cover more details on our financials. Thank you, Clive, and good morning, everyone. Firstly, I'd like to take you through the key highlights from our income statement. At the top of this page, you can see adjusted revenues for the full year came in at GBP 375.1 million, and that's down 3.3% on last year's revenues of GBP 388.1 million. The key driver of this fall is the cessation of revenues from our ID business, but I'll cover this shortly on the next slide. These lower revenues pass through to lower year-on-year gross profits with GBP 97.6 million for this year versus GBP 107.8 million gross profits for last year. Similar to revenue, the ID business is a key driver of this drop, with essentially no profits coming from ID versus the GBP 12.6 million gross profits that we had for FY 2021. If we exclude ID, gross profits for the rest of the group have increased year-on-year, with Authentication's gross profits increasing 15.4% to GBP 34.5 million, and that's more than offsetting a 3.2% reduction in currency to GBP 63.2 million. Next, on this slide, you can see adjusted operating profits of GBP 36.4 million, and this is driven by year-on-year operating profit growth across both Currency and Authentication. With Currency's profits up 20.4% to GBP 19.5 million from GBP 16.2 million in the prior year, and that's despite the fall in its gross profits. Authentication's profits are up 44.2% to GBP 16.3 million from GBP 11.3 million in the prior year. From a group perspective, it's the ID profits in the prior year that's driving that overall year-on-year fall from GBP 38.1 million to GBP 36.4 million. Adjusted operating margins are broadly flat year-on-year at 9.7%, which is obviously a positive outcome for the business given the environment that we've been operating in. IFRS operating profits of GBP 29.7 million have more than doubled versus the prior year, and this is driven by much lower exceptional items for FY 2022 of GBP 5.7 million, compared to that of the prior year, where we had GBP 22.6 million. This is filtering through an IFRS margin increase from 3.6% to 7.9% year-on-year. Finally, on this slide, we have the EPS metrics, and on an adjusted basis, prior to any exceptional items, this is down by GBP 0.13, but is up 186.5% on an IFRS basis after the impact of lower exceptional items charged during the current year. If we move to the next slide, this is really providing more details on adjusted revenues and gives you a visual for the 3.3% revenue decline year-on-year. From GBP 388.1 million revenue for 2021 on the left-hand side to the FY 2022 revenues of GBP 375.1 million. To the right of this chart, you can see the impact of the cessation of ID revenues of GBP 19.8 million, with this business providing minimal revenue for this year following its disposal back in Q4 of 2019. Adjusting for this, our continuing businesses experienced year-on-year revenue growth of GBP 6.8 million, with GBP 12.7 million of revenue growth for Authentication, part dampened by GBP 5.9 million decline in Currency. If we move on to the next slide, we can see a visual for adjusted operating profits. Again, showing the key movements between last year's profit of GBP 38.1 million on the left of this chart to the GBP 36.4 million. Again, like revenue, you see again the impact of the ID disposal, the GBP 10 million to the right of this slide. You can see from the yellow shaded box that we've had strong underlying growth across our two divisions with Currency up GBP 3.3 million or 20-odd percent to GBP 19.5 million adjusted profits and Authentication up GBP 5 million or 44.2% to GBP 16.3 million. If I move on to cash flow. On this slide, we show the various cash flows from operating activities, financing activities, and investing activities and how this has influenced the overall cash flow for the year. If I start to the left-hand side of this chart, you can see the GBP 16.5 million of inflows from operating activities off the back of our GBP 36.4 million of adjusted operating profits. The key outflows that you can see in respect of this left-hand side are our own working capital and pensions. On working capital, there's been a GBP 17.2 million outflow, and the main driver of this is really in our Currency division, where we've seen a year-on-year reduction to our advanced payments of GBP 23.8 million, with GBP 14.3 million of advanced payments at the end of 2022 versus GBP 38.1 million of advanced payments in the prior year. We've had approximately GBP 20 million of advanced payments coming through just after the year end. Really the vast majority of this delta is timing related. On pensions, there's been the GBP 16.4 million outflow that you can see on this chart, and that's the GBP 15 million payable under the recovery plan and the schedule of contributions we have there, plus administration costs. You can then see there's some smaller operating flows on this page, GBP 3.7 million of provisions releases, things like warranty provisions, GBP 2.5 million of cash exceptionals, again, notably lower than last year, GBP 1.8 million of tax, plus a GBP 4.1 million adjustment for non-cash items, which covers things like share-based payments charges. In the middle of this chart, you can see the GBP 7.7 million inflows from financing activities, which most notably includes a GBP 17 million drawdown on our facility over the year. This has been offset with outflows of GBP 2.2 million of lease liability payments, GBP 6.2 million of interest, plus a non-controlling interest dividends of GBP 0.9 million. Lastly, to the right of this chart, you can see the GBP 25.8 million outflow from investing activities, and that's really essentially driven by that CapEx outflow to support the ongoing delivery of our turnaround and CapEx spend. Overall, this results in a GBP 1.6 million outflow that you can see to the right-hand side of this slide, which obviously includes that GBP 17 million drawdown of our facility. If I can now move on to my last slide and cover off net debt and pensions before passing back to Clive. As Clive's highlighted, we landed net debt at GBP 71.4 million at year-end compared to the prior year net debt of GBP 52.3 million. This year-end position is very much consistent with the message we've given previously, with net debt growing as we continue to spend the CapEx that supports our turnaround delivery. The top of this slide shows our overall facility position, the GBP 275 million facility, and that's got another 18 months on it before it matures at the beginning of December 2023. We maintain significant headroom on our two covenants, with a net interest covenant at a ratio of 7.3 x, and that's versus the covenant level of 2.8x. The net debt EBITDA ratio is 1.46 x, and that's versus a covenant level of three. At the bottom of the slide, you've got pensions, and the valuation of the group's U.K. defined benefit pension scheme on an accounting basis at the year-end is a surplus of GBP 31.6 million, and that's versus a deficit of GBP 18.5 million in the prior year. These movements from surplus to deficits are really driven by changes to the discount rate applied at each year-end. As Clive also noted, we managed to update our schedule of contributions and our recovery plan payments to the pension scheme, and we've now agreed to keep this at GBP 15 million, and it was due to increase from GBP 15 million to GBP 24.5 million from April 2023 onwards for the next six years. That change is essentially avoiding an outflow of cash of GBP 57 million over the next six years or from the six years beginning April 2023. That's a significant improvement to our future cash flows. Additional contributions are only payable to the scheme in extreme circumstances, and our next triennial valuation is set for April 2024. If I can now pass back to Clive to cover off summary and outlook. Thank you, Rob. In summary, we have delivered strong operating profit growth in our ongoing divisions in the financial year 2021, 2022, along with substantially improved positive operating cash flow. We are making significant progress in our transformation program, but the deteriorating economic and geopolitical situation is providing an unpredictable series of headwinds on the business. For this reason, we now expect adjusted operating profit for the current financial year will be broadly flat on that achieved last year. Despite the unprecedented macro environment, we continue to make progress with addressing legacy issues and streamlining operations. Further opportunities remain here that could provide additional upside in due course. The markets in which the company operates remain strong and continue to grow. We've made considerable progress in the turnaround of the business since we first set out our plans just over two years ago. We have created an ongoing business that is producing meaningful profits and an improving trend in operating cash flow. This year, we will progress towards completion of the investment projects outlined in the turnaround plan, after which we should see a normalization of capital spend. With the pension schedule of contributions significantly improved and our continued consistent strategy execution over the coming year, our objective remains to generate cash flows capable of supporting sustainable dividends to shareholders, especially once the external cost environment stabilizes and we have continued our progress in solving the outstanding legacy issues in the business. We'll now move on to Q&A, and I understand we're going to ask for questions in the room first and then address questions from those who are listening remotely. Morning, James Beard at Numis. Couple of questions, if I may. Firstly, on Sri Lanka, obviously, pretty tumultuous situation in that country right now. How does that potentially impact production from your facility and indeed supply of raw materials and distribution from that facility? Have you factored that into your sort of expectations for FY 2023? Second question, just on, I guess, sort of relatively general question on GRS authentication. Of your GRS authentication customers who are tobacco customers, what proportion of those have also subsequently signed up for other products, alcohol or soft drinks, as an example? Okay. Thanks, James. Good morning. Sri Lanka, we're obviously monitoring the situation very carefully there because of our substantial operations. We have only so far experienced about a 36-hour shutdown of the factory when the demonstrations were at their peak. We have continued production now. It is open. It is running as normal. We have all of the supply that we need. We have diesel generator backups for the power supply outages. We are able to be prioritized in the supply of diesel. We are continuing to work with the bus companies to make sure they have enough diesel to get our employees into work. At the moment, the situation is that it's gonna have limited impact, which is reason why I haven't highlighted it in my talk today. Obviously we will watch the situation very carefully going forward. The good thing about our position in Sri Lanka is that we get all sorts of support from the government as a priority business in relation to curfew passes and other diesel availability and other key inputs to our process. At the moment, we are not factoring in any substantial reduction in either output or performance from our Sri Lanka facility. In relation to the GRS customers, this is a sort of gradual process, it's probably not easy for us to just say what percentage. I would say that a good substantial number of the contracts that we sign up, either have a sequence of tax stamp implementations, starting with one and then the only other up front, or that when governments see the improvement in the fight against illicit trade and the improvement in tax revenues, they often come back for more. I think over the next few years, we will see many countries on multiple schemes. Good morning. Mark with Baqueira Capital. You talked about a post-COVID normalization of banknote demand. Can you help us understand what you mean by normalization? Yes. During the COVID pandemic, and it may seem completely counterintuitive 'cause it does to me, in a way, until you get into the detail of it, there was a very significant spike in demand for cash, and that was more dollars, more euros and more sterling issues during the time as well. This isn't just a developing nation phenomenon. But it's a pattern that we see regularly when there are global economic crises or global shocks to the system that there is a run to cash. What we're now seeing as we're getting past that, we're seeing that countries have stocked up and that the demand is relaxing. I think it's very important to say the demand is relaxing and going back to a more normal steady state than it is we see any trend towards reduction. What that really means for us is that we are just a little bit less comfortable in time frames of orders coming in. When we look at the overall outlook for banknote demand in this year and next year, it's actually very strong and the margins are looking very strong also. We feel very comfortable about the situation. It's just banknotes are cyclical anyway, and at the moment, there's just this post-COVID sort of relaxation of demand. Thank you very much. Just if I can ask a little bit of a generalist question, as I'm a bit of a beginner on De La Rue. Can you just remind us if you give the statistics of your banknote sales per client country and just to understand going forward, 5 or 10 years, presumably there will be a decline in demand from developed countries and continued population rise in emerging economies, which might lead to sales of lower-end banknotes with lower margins. Can you help me understand the trend there? Thank you. Try and just give you a picture of how we see the currency market developing. First of all, we have to remember, if you look at the latest Bank of England study, they are saying that actually only 24% of the banknotes issued are transacted. The vast majority of them are of hard currencies are a store of wealth. If we look at the overall trend, you've got obviously the factor that reduces demand, which is the transactional side, which is going to increasingly digitize. You have all these other factors that ensure that the demand remains very resilient. I've gone through some of them today. Population growth, symbols of national identity, changes in presidents or whatever will change banknotes. They're very important functions as a store of wealth. Obviously, inflationary pressures have quite an impact on the demand. What we also need to factor in, and this is why I'm very comfortable with our position in the market, is that there's with this trend of paper to polymer, we believe, and we have signed up to the thinking that that trend is going to increase and indeed is going to accelerate, and we have seen that acceleration happen over the last couple of years. Even if total demand does decline, and we see no sign of that yet, we still feel we're in an absolutely wonderful position to be able to capitalize on that growing trend of polymer banknotes, because 95% of the world's volume still has yet to convert. When I put all that together, our view of currency over the next decade, let's say, is it's a wonderful place to be, and we have probably the best position of any company in it. Can you help us out? Remind us what proportion of sales in developed economies are and, to understand the switch to polymer, in an emerging economy where the population is growing, increases the price per banknote by roughly how much? Yeah. There's just so many different variables in this, so it's very difficult to just give you a real sort of percentage of something like that. I mean, I think we have gone off the initial mandate that if you look at the Bank of England's reports, you will see that they. The initial purchase price is generally something like 70% higher for polymer banknotes, but that they last 3x-5x longer. The business case is very, very clear. In terms of if we're talking about the strongholds of us, which is in the developing world, we're seeing as strong a conversion to polymer in the developing world as we are in the established countries. In fact, if we look at where our competitor was strong, our competitor was strong in polymer because they got in earlier. They were the first to market, and so they got all of the traditional countries exclusively to start with. We have now broken that exclusivity in those countries, but generally our focus is on the new emerging conversions over to polymer. Yeah. To give a kind of view in terms of numbers here, I mean, if you're looking at the overall group revenues of GBP 375 million, you're probably looking at about GBP 200 million for Middle East and Africa, another kind of 45 for Asia. So, you know, approaching 250 of the 375 is coming from those regions versus U.K. and the rest of Europe, you're talking about around about GBP 100 million or so there. That gives you kind of the emphasis in terms of the metrics and kind of where we're doing business globally. Good morning. Thomas Investec. Just to follow on from that polymer question, and with one eye on the kind of increasing capitalized development costs in the cash flow. Can you just talk us through how your security features portfolio and the R&D that you have been spending and plan to spend on that is helping you convert those, or help convert those customers to polymer? And obviously the eye on polymer being generally more secure kind of product and what customers are asking of you from those security features. Thank you. Great. Thanks, Tom. The security features arena on polymer is really important to our future strategy. If we look at the paper market, paper security, the paper security features, threads and foils and inks and things that make a banknote more secure, that market is very saturated. There's lots of competition in pretty much every type of feature and very difficult to increase market share and overall, that market's pretty stagnant at the moment. When we look at polymer, there's lots of other dynamics going on. Number one is that there are very few competitors in security features. For each security feature, you're sometimes up against one other company. Generally it's an uncrowded market. Secondly, exactly as you highlighted, Tom, the introduction of more and more security features actually supports the case for conversion to polymer. Because A, polymer is more secure anyway because it has features naturally like windows and things. But adding more and more security features just adds to that argument. Our security features strategy is game-changing new features released at speed over the next two years, including some really game-changing ones that's nothing like it in the market, and they are coming out. Putting features in the actual note itself instead of just applied, thereby strengthening the conversion to polymer and also incremental revenue margin on top of normal banknote printing and normal substrate provision. Okay, thank you. We've had no more questions from the room, so we're going to move to questions from the webcast. First question is from Mike Allen from Zeus Capital. Could you provide us with some more color on easing of semiconductor situation, please? What industries you are facing the most competition from? Yes. As many of you know, one of the challenges we had in the fourth quarter of last financial year, first quarter of this calendar year, was that we were let down in terms of semiconductor supply at fairly short notice. The situation has improved substantially, and we are running with all our requirements as it stands today. Our line is running at full whack. As we go forward, I think it's fair to say that we probably have something like three-quarters of our requirements for the full financial year secure, and because we are very proactive, we've already ordered and had confirmation of our demands for next financial year. The risk remains how do we plug that additional 25%, and we're working that very, very hard. Secondly, can we make sure that we hold the suppliers to actually delivering to those promises? I think generally, whereas over the last 6 - 9 months, we were competing in a very sparse availability market against industries such as the auto industry, I think now the semiconductor suppliers are able to satisfy both. While we're not there yet for all of the requirements this year, I think we've got a pretty good shot at it. Thank you. Next question is from Susie Harris from BDM. With polymer banknotes lasting longer in circulation, how do you anticipate this will impact the longer-term currency projections? This is a question that we field quite a bit. I would be extraordinarily worried about it if we didn't have our position in polymer that we do, and if I didn't see that the trend was accelerating towards conversion. The logic is, of course, as more and more countries convert to polymer, they will refresh their banknotes less frequently. However, the key to our strategy for the next at least decade, probably longer, is that our focus is on the first conversions of each company. There's 95% by volume of the market and 88% of the market by denomination that we have to go after. Because we are one of two polymer substrate providers, we will not, in our view, be impacted too badly by the fact these notes last longer because there will be this wave of demand for many years to come in the conversion arena. Now, when I sit and I think about, well what's it like in 15 years' time, where you've got total digitization everywhere and everyone's on polymer, then it may well be different. I think for the next 5-10 years, and I look at it as the next decade, I think we're extremely well positioned. Thank you. Next question is from Bobby, who's a private investor. When do most of the legacy supplier contracts come up for renewal, the ones that are creating financial headwinds and were mentioned as an outstanding item for the company to address? Most of them, most of the sort of smaller ones are probably within the next couple of years will expire, or if they don't expire, then our major financial obligations are released, as it were. Obviously, the contract that we get asked about a lot is our paper supply contract from Portals, and that runs to 2028. Thank you. Just a reminder, if you'd like to ask a question, please use the toolbar below. Next question is from Susie Harris from BDM. What level of opportunity exists in your business transformation project? Can you quantify this? Sorry, can you just repeat that? What level of opportunity exists in your business transformation project? Are you able to quantify this? Yes. If we look at the business transformation in terms of the operational footprint of our company is that we are generally reducing the number of print sites, concentrating operations in fewer sites, which has significantly less cost. We've already quantified that there's GBP 36 million of cost out that's happening through our transformation activities, and that's already secure. We've now got additional several million, I would say single-digit million of additional opportunities this year and further opportunities thereafter in terms of further transformation. The other angle on it is that if we look at the currency business in particular, which is the vast majority of our physical operations, you will see that we're running around 6%-7% operating profit at the moment. When you look at the legacy contracts, and if we can sort those out and the additional efficiencies that we are driving through the transformation program, then I would like to think that we could get Currency up to double-digit operating profit margin. In support of, obviously in terms of Authentication, looking at high teens at the moment and heading northwards. There's plenty of opportunity out there for further transformation. That's great. Thank you for that, Clive. Next question is from Mark Dicks from De La Rue. With the increase in consumer e-commerce, is online brand protection an area that De La Rue should consider moving into? Online brand protection is one area we have taken a look at. The view that we currently take of that market is that it's incredibly fragmented and rather challenging to automate. There's a lot of manual effort to fight online counterfeiting at the moment. The contract size is generally much smaller than what we're used to as a De La Rue company. Whereas on the surface of it, online brand monitoring seems quite an exciting area, and I have no doubt it's growing. I'm not sure that it fits exactly into our portfolio. I'm thinking strategically, we might try other things first. Thank you. Our final question, which is a follow-up question from Bobby, who's a private investor. Is the company reassessing the chances of recovery on the Venezuela receivable that was previously fully provided against? The Venezuela receivable remains receivable. It's important, once again, to understand that it's not the Central Bank of Venezuela that is not prepared to pay that receivable. It's the fact that the sanctions on the country mean that no bank will transact that money. We have no plans in anything that we are planning for at the moment as to when that may come in. We remain positive that at some point when the regime may change or when sanctions are lifted for any other reason on Venezuela, that we will ultimately get paid. It is so uncertain as to when that we don't factor it into any of our forward planning. Thank you. No further questions from the webcasters. Now I'd just like to pass back. We've got a further question from the room. Just we'll move to the room. Just another two questions, if I may. You talked about passing on some of the price, the cost increases that you are suffering from at the moment. Can you explain why it's only some and you can't pass on all the cost increases? A second question, on the outlook you gave for paper banknotes, which is stagnant or decline and sharp growth in polymer, which is gonna be fantastic for you. Can you just help us understand who are the producers of paper banknotes? Who are the producers of the polymer banknotes? And what are the barriers to entry, which are gonna mean that the paper producers will not move into your market? Right. Great, thanks. Let's deal with the first question. If we think about the currency arena, one of the reasons why we can't just pass on cost increases to customers is that the overall demand, as I mentioned, is normalizing post-COVID. Whereas our European competitors were very busy printing the euro over the last couple of years, that demand has eased a bit. Of course, they are looking to fill their capacity elsewhere. It just means that the market has become a little bit more competitive. We are very good at finding the right price points, but it does mean that the prices are not increasing by the same percentage as the inputs at the current time. Now, in other parts of the currency business, in the substrate and the features, there's probably more opportunity. Again, we're in competitive markets right across the board. To answer your second question on paper banknotes. The market for banknotes in general is. You're asking who prints them. Most factories can move from paper to polymer banknote print very well with very little additional capital equipment. As it stands right now, somewhere between 85%-90% of the world's banknotes are printed by state print works themselves. Obviously, the majority of those are on paper. In terms of the opportunity, the big opportunity for us is to provide substrate into state print works, into that 85%-90%, where we don't print, we just supply the substrate. That's the big growth area in polymer. Obviously, we will supply to our own factories, and we do supply to competitive factories as well in the commercial world. But that's where the main opportunity lies. Of course, we are two polymer providers in the world versus probably more than 20 paper mills in the world. One of the interesting dynamics at the moment is what's happening in the paper market and the paper mill market in general. In terms of barriers to entry, it's on polymer, the barrier to entry is less, actually the capital side. Unlike a paper mill, which is incredibly capital intensive and requires a lot of upfront investment, the upfront investment for polymer, I mean, we've gone public and said that our new polymer line costs us GBP 20 million. Not prohibitive. The barrier to entry comes in the actual technology in what we do to the base film to make it printable in terms of conductive and various properties of what we have to put into that polymer to make it printable downstream. That is something that we have been working on now for 15 years, and we still haven't perfected, even though we have the very best polymer product out there and the most complete. Any new entrant would go through a similar journey, and I think that would be quite a challenge. I'm also realistic in the fact that this is such an attractive market that it would not surprise me at some point that a third entrant came in. Okay. Thank you, very much. I think just to conclude, very briefly, we've hit a few bumps in the road, and we can really honestly point at those bumps being, as a result of the world environment that we're all struggling with. I am absolutely convinced that we're on the right path. I'm absolutely convinced that the turnaround plan and the transformation strategy that we are undertaking is the right way. I think if I can get you to think of it as if most of the currency investment that we outlined at the time of the equity raise is complete and paid for, and there's still some more authentication investment. Once we get to the back end over the next sort of year or so, to the back end of that investment program, then we normalize back to normal capital spend levels. We've already sorted out our pension. If you think about it roughly as 15 to the pension and 15 to normal capital expenditure levels, and then you look at us going further forward on our operating profit from where we are today, and you look at the EBITDA that results out of that. I do think it's very clear that we will be generating positive free cash flow within the not too distant future. Thanks very much for your time today.