Good morning, everyone, and thank you for joining us. I'm Mel and would like to begin by acknowledging the Traditional Owners of the Country on which and recognise their continuing connection to the land, waters, and Today's presentation is being recorded, and a recording will be made of used in the presentation are also available on our website.

The questions can be submitted at any time by selecting the raised hand icon To view the slides in full screen, select the button at the thermal layout showing the slides and presenter. We may Group CEO and Managing Director, and Mark Simons, our CFO, [unclear] Maria Loyez, and Group Executive Asset Management, [unclear] present to assist with answering questions.

John will take provide a short business update. Over to you, John.

This year marks 40 years of Australian Ethical. Founded in 1986, Australian Ethical was built on the be- generate strong returns while directing capital to future-focused compass and animals.

The Ethical Charter guiding our invest- that gives us a distinctive market position. We're not a ethical investment manager.

Today, we're also a fi- investors and shareholders. We have demonstrated that per- forcing.

Our strategy remains clear and deliberate engines, superannuation and investments beyond super, at a scalable unit cost. Organic growth remains [unclear], where they strengthen capability, broaden reach, or ex- I want to emphasize is consistency.

This is not a new increasingly visible in the quality and the resilience of the business that and strategic milestones build on the momentum of recei- of all members onto the GROW administration platform. The firm platform from which to enhance the member experience and grow its digital marketing, website, and onboarding experience work compared with the first half of the year.

In invest- income and private markets, this broadens diversifica- casters. When launched in March of this year, our growth $125 million cornerstone investment from the Clean Energy continued our focus on business resilience, governance, cyber risk, These are not distractions from growth, they're par- term success also depends on a capable, purpose-led culture, and I'm so proud of our people and pleased to see their engagement for that engagement to sit ahead of industry benchmarks is a real test- detail, but I do just want to briefly frame the results.

Net flows, record funds under management and earnings, underlying profit after tax increased 15%, and the underlying cost-to-income ratio improve- The strength of this result enabled the board to decla- share, a 29% uplift year-on-year. That we are a growth company, but also a company with str- while we continue to invest in the capabilities required for future growth, while maintaining clear cost discipline and a focus on the quality of the offer we now have for our customers.

engine provides revenue predictability and underpins fir- positions for values-aligned investors seeking financial returns. we plan to launch a new impact fund in the fir- philanthropic sector.

We continue to focus on custom- management growth, and operating leverage as we scale. in assessing ethical investment opportunities, investing with dif- effective stewardship.

Over the past year, we con- the use of artificial intelligence, increasing the breath, policy makers and companies to account on issues that matter. ed a challenging year well.

Fixed income and private markets were more exposed to the dynamic shaped by the war in the Middle East. concentrated outside our ethical investable universe.

are undervalued. We remain focused charter, investing with valuation discipline, broadening ca- The Australian Ethical Foundation remains one of the clearest expressions allocate 10% of profits to charitable organizations, primar- address climate change, restore nature, empower fe- by 26, we allocated a record $3.4 million to the Foun- support that grant-making work.

Through these grants, community-led solutions, addressing biodiversity loss, climat- My team knows that rather than blowing our own trumpet, I'm much more interested in what- what the team has achieved. As underscored by recognition across products have won Money magazine's Best of the Best Awards, Roy Morgan, and Finder.

The integrity but this recognition gives us confidence that our proposition here. It's about sustained focus over the past five or six more than 3 1/2 times.

We also strengthen the oper- stronger returns to shareholders. The quality net flows, targeted investments in capability, on operating leverage.

After Mark Mark takes you through business outlook as I see the organisation. Mark.

Thank you, John, and good morning, everyone. FY20 management, revenue, earnings, and dividends, ported by higher average funds under management.

Underlying profit af- attributable to our shareholders increased 29%. percentage points to 69.8%, by only 2%.

A key differentiator of Australia funds under management is in super, with growth supported by through market cycles. We closed FY20 This growth continues to be driven by positive net flows.

of funds under management is in our superannuation. capa- bility and product range to attract new middle market $4 million.

Superannuation remained the primary contr- flows, despite disruption from the mi- for the from the final mi- 4% of members are in pension phase, which is below the broader indus- rate remains low at 7% of funds under management. ingly to our growth.

These include NGOs, chari- investment manager. We are also seeing Clean Energy Finance Corporation into our growth Opportunities Fund that it's competitive for current and future customers.

We care- for shareholders and a compelling offer for customers. The spot revenue margin at 30 June '26 was 89 ba- margin is expected to remain consistent during FY27, marginally offset by a lower revenue margin and fee adjustments.

The insurance administration fee introduced during the year, and Our revenue base is broader and more diversified than it was several years ago. cations supports both future growth and revenue stability.

that we contribute continue to invest in a scalable business platform operating leverage, reflecting scalability, efficient Operating expenses increased 7%. Employee expenses increased 11%, reflecting the full-year impact of the Altius team and wage inflation, with the average funds under management growth of 11%, which Technology expenses growth reflects continued artificial intelligence initiatives and stronger cybersecurity free up capacity and accelerate ethical research and assessments.

The business is entering its next phase with a We've significan- significantly We achieve this while continuing to invest in the business platform, members and investors. We retain a strong balance sheet requirements.

This provides resilience and the flexibility It is also provides optionality to pursue attractive gro- fit and profile. The successful execution four-year compound annual earnings growth of 20 32% over the same period.

We are our resilient business model, trusted brand, and back to John for the business update.

Mark has just shared outlined and show the benefit uh This is the strategy that will continue to guide us over the coming years. '7 to position the business for its next phase of growth.

panding employer channel capability. Together and retention and increase member lifetime value.

completed across asset classes, strengthening our institu- bringing further product innovation to market in the coming months. artificial intelligence and smart technology to serve members in- We intend to assess these opportunities in the first half of FY2- and business resilience, governance practices, and risk management.

as in both the short and the longer term, subject to ma- high, a unique position among fu- fund managers, and listed that depend on discretionary investment flows, we have intentionally bu- market cycles. Regardless of short-term investment mar- second half of FY26 and new customers and flows to to our superannuation value proposition and continued product in- confidence in the strength of our brand and the product and channel growth engi- values-aligned investing.

We'll continue to invest sensibly targeting expense growth below revenue growth, subject, as I've said, with an expectation that underlying cost-to-income ratio fo- Again, thanks very much for joining us this morning. I really deeply value the and the team and I look forward to answering any questions that you might have.

As a reminder, questions can be submitted by selecting the raised hand icon located in the top right-hand corner of the webpage, and typing the question into the designated text box. A que- a question's come in.

I will hand this to you, Mark, um as the CFO. You've had significant profit growth during the period.

Did- did the board consider paying a high dividend? Uh

thank you for the question. The board was particularly pleased with the profit growth is obviously underpinned by the underlying profit of 15%, and that confidence in the pro- the company and the growth in profit per share, uh which has taken our total dividends for the year up Um what this is is a payout ratio continues to be 80%, um and that gives us that capital flexibility to ensure that we can invest uh look for inorganic smaller ac- um opportunities.

Uh

a question for you, John. Um how how is your organization thinking about AI?

Um

look, we're excited about the opportunity. business, we, uh as a team, are looking up and down our whole value to leverage and accelerate our unique um cies and speed uh dividends uh that might apply in the business.

uh in the use of our uh ethical universe with our investment team, um our investable universe. I might, um if we can get the tech office, Alison, briefly, if you're able to share um the example you've been working on.

Um

during the year, we've been working to better leverage data and technology in our ethical workflows, including piloting AI approaches. This has really helped us to prove up where and how AI can add value in augmenting our in-house ethical experts, and help us to scale our research activities while maintaining our ethical standards.

It's supported us to increase our research out- for in FY26, we added more than 190 new names to our investable universe, giving the investment team a broader set of ethically assessed opportunities to consider.

Thanks, Alison. Yep, I think look, it's a great ex- We look to accelerate uh and leverage further our unique IP, to create efficiency and speed for the team.

As I said, I'm a- ization, I see um some other companies talking about what they're doing ideas or projections of what may or may not happen. Um we to to benefit uh for the organization uh and play out on AI.

Um but we're very positive about it, um starting to use it wide- uh in our organization uh over the next period.

Questions come in um about superannuation flows, and I'm going to hand this uh to to you, Maria, as Group Executive, Superannuation. Um the question is, uh can you provide more detail on your super flows uh for the FY26 year, and and what's your outlook?

Thank you. Um look, we're really p- cult.

Um we're seeing strong SG, involuntary comp- ministration platform, which completed in the first half of the year. ence, which saw our joins lift.

As you saw in the presentation, uh our new customers to um rollovers as soon as we can after they've Um we're really focused on building on those foundations of that ember experience, um particularly our help and content, our help Um and a- as John said, we're also looking at how we m-

John, um question for you to answer. Can you comment further on how the the license condition work is progressing, please?

Sure. Um look, I'm really pleased with progress uh on that.

We have a APRA. Um we've agreed uh with APRA uh the uplift uh, and, I'm very confident uh that we'll be

Thank you, John. A question's come in uh on revenue margin.

Uh the question is, it it has looked relatively stable in FY26, but um the uh the listener is keen to know what what the outlook is for revenue margins and fees. I'll hand this to you, Mark, as as CFO.

Thank you. We'd like to highlight, we, as I've mentioned, we have a premium product and price, and this that premium price is We Our focus is on providing that proposition, that prod- uh provides in- leading investment objectives, and we meet those objectives.

relatively stable. Uh it'd only reduced by 1 basis point ning of our superannuation uh menu, uh which is optima- basis point margins, reducing to 89 points.

Then beyond FY27, we we're always looking to make sure As we scale, there will be some modest fee reductions, but we call that income ratio, uh which, as John mentioned, is expected to

Um I'm going to pass the next question over to Ludo, our Chief Investment Officer. Uh and um Ludo, you've mentioned the the middle market and uh well during the speech is the middle market and product innovation was quite a fea- feature.

Um what is the size of this market and what are your plans to capture the market? Um

Mel, thank you for the question. Um yes, we are very excited um and by middle market, we mean um uh fun- broadly speaking, uh values-aligned investors.

We estimate billion dollars. Um we are very keen on the concept of mentioned before that we launched recently our second private markets fund, um a a multi-asset impact fund, um in on that this concept of um strategic partnering with wholesale business.

Thank you, Ludo. Uh the Another question's come in um about super member joins, which um we noted uh you noted that there was 20% growth on member joins um versus the first half.

Um I'll hand this to you, Maria. Could you give us a bit more flavor on this and and what the outlook is for for member joins?

Um

yes, sure. Um uh in member joins.

Um uh we saw um 15,000 Um we have um we're a choice um superannuation uh focus, and we'll continue to hone that, um but also our revenue.

Great. Thank- thanks for that extra d- Come in uh regarding uh governance related.

Uh so, regarding the governance transformation um that that you have underway, um are you able to give us a sense of how much additional cost that might bring, um and also, whether that will be one-off or or recurring in nature? Yeah.

Um let me

let me start that, Mark. You might you might add to that.

Um uh Do, of course, um we'll continue uh to invest in the business, as I said. you to scale this business, that we have a strong operating platform, that it's resilient.

investment is this space, not detracting from growth, but completely underpinning us uh in the next year. They're not, to my mind, material in the and well.

Uh but, um they're embedded in strong expectations about our revenue uplift uh and our cost contain- Mark, do you further comment on that?

No. The only the one-off nature in the transformational uplift in gover- you'd had adjust those amounts, but uh operating expense envelope, as John mentioned, under the cost-to-income ratio.

make sensible and disciplined investment decisions in context of the governance up-

Mark. That looks like all the questions that we've had in for the day, I'd like to thank you all again for joining, and have a great day.