Good morning, everyone, and welcome to the Cobram Estate Olives Limited full year results presentation for the 12 months to 30 June 2026. Thank you for joining us online.

My name is Sam Beaton, I'm one of the joint CEOs. I'm joined here by Leandro Ravetti, who's my other joint CEO of the group.

I'll be taking you through a financial and a commercial update for the year. I'll then hand to Leandro, who'll take you through an update on the California Olive Ranch acquisition, an update on our operations, and also an update on our capital projects.

We'll have plenty of time for questions at the end. There is a raised hand icon at the bottom of your screen.

When we get to question time, if you'd like to ask a question, just press that button. We will then unmute you when it's your turn.

In the meantime, please make sure your microphones are on mute. This year has certainly been a transformational year for the company following the acquisition of California Olive Ranch in March 2026.

Not only has this increased the scale of the business on a global basis, but more importantly, delivered us scale in the USA and a great platform for growth. We're now the number one grower and producer of of US extra virgin olive oil, and we're also the number one marketer of locally grown olive oil in that important US market.

Pleasingly for us, our normalized EBITDA, particularly in an off cropping year in Australia, was $61.4 million. This was underpinned by modest growth in Cobram Estate on the back of of tougher competitive environments, maturing olive groves in Australia, and a 3-month contribution from COR.

All these results have 3 months' worth of results and cash flow and profit relating to the California Olive Ranch business that was purchased at the end of March 2026. We strengthened our balance sheet.

During the year, we raised $178 million in September, October 2025. Though that capital raising has largely been deployed, investing in groves in in the USA and contributing to the the funding of the acquisition of California Olive Ranch.

Our asset value is now sits at $1.4 billion. Pleasingly, during the year, our Cobram Estate Australian sales grew despite very heavy promotional campaigns run by our imported competitors.

This really highlights the strength of the brand and the consumer demand for high-quality extra virgin olive oil. From a CapEx perspective, we continue to focus our growth CapEx into the USA.

For a more detailed profit and loss, our sales grew by $27.3 million. I'll talk through the the sales more in more detail on the coming slides.

From a normalized EBITDA perspective, our Australian business reported EBITDA of $52.1 million, which was down from $110. This was expected due to the off-cropping year in Australia.

As a reminder, under accounting standards, you you're required to measure the majority of the profit relating to the crop in the year of harvest, not in the year of sale. We do that by by estimating the expected net selling price of that crop, and then we deduct the actual costs of selling.

It was also driven the result was also driven by higher operating costs, particularly in Australia, where we saw an increase in water cost of over $6 million, temporary water costs, and and also a modest reduction in in selling price across our package goods portfolio. In the USA, our EBITDA increased to $9.4 million.

The majority of this increase was driven by the 3-month contribution from California Olive Ranch, offset slightly by an increase in costs. Then from a normalized earnings before tax perspective, $30 million against $76.1 in the prior period.

There's a number of one-off costs or abnormal costs in our profit and loss this year, particularly most of them relating to the acquisition of California Olive Ranch. I'll just take a little bit of time explaining that.

The warrant expense of $41.8, so as you may remember, as part of the acquisition, we issued subordinated debt to both the the sellers and a third party, AGR Partners. As part of that subordinated debt, there were warrants attached to that.

The warrants are actually The warrants relating to the AGR debt, the third-party debt, the value of that at acquisition is required to be measured through our profit and loss and expensed. Then the movement in the warrant valuation between the acquisition date at the end of March and 30 June is also required to be expensed.

That makes up the $41.8 million. It is noncash, and I'll explain a little bit more about about the warrant when we get to the balance sheet.

Transaction costs of $4.8 million relating to the COR acquisition has gone through our balance sheet, uh sorry, our profit and loss. Also other of $4.1, which is predominantly made up from a downwards revaluation of a property that was externally valued.

From a tax perspective, the reason this is positive, positive number of $33.5 is because of we recognized historical losses from our US business. Previously, they hadn't been recognized on our balance sheet.

With the acquisition of COR and the assessment of profitability profitability of our US business, we're able to recognize those carried-forward tax losses, and will offset future tax gains, and sit on our balance sheet, and the other side has gone through our profit and loss as a tax benefit. Cash flow statement for the group, we reported a $47 $47.5 million cash flow from operations before interest and tax.

This was down from $83, and we've got a slide coming up that explains the variance in those two numbers. Other key items on our cash flow statement, we spent $101 million on on CapEx projects during the year, the majority of those in the US, and the majority of those in on growth capital projects.

We also paid 100 just under $160 million for the purchase of California Olive Ranch. That's the cash component of the purchase.

Of course, we raised equity during the year, which totaled just under $180 million. From a liquidity point of view, we have undrawn debt facilities and cash of $115 million at the end of June 2026, and this compared to $41.5 million at the same time last year.

This chart shows our cash flow from operations over the last 5 years, both pre interest and tax and post interest and tax in the gold bar. Just want to point out here that we did pay $27 million in tax during the year.

There was $12 million that related to FY '25, being the final installment of the FY '25 tax. To explain the the the variance in our operating cash flows and why that decreased so much this year, last year we reported operating cash flow for before interest and tax of $83 million.

We we invested more in buying olive oil during the year, both in Australia and in the USA, which totaled just over $16 million. The temporary water price in Australia contributed to $6.2 million more in in operating cash outflow.

From a bulk sales perspective, we sell all our non-extra virgin low-value oil as bulk. Pricing certainly softened during the year, and there's some timing differences there as well.

Of course, add our COR transaction costs, which go through our operating cash flow, of $5.7 million. From a balance sheet perspective, our net assets increased to $517 million.

Just a reminder here that our trees and irrigation infrastructure are carried at at written-down costs, not at external valuation. Our brands, Cobram Estate and Red Island, are also carried at initial cost, which was under $7 million.

There is an apportionment to the California Olive Ranch and Lucini brands now on our balance sheet. The deferred tax asset of $40 million, that relates to the carry-forward US tax losses that will offset future tax gains in in future periods.

The $66.8 million of carry-forward tax liabilities, that relates to an historical asset write-up of property, plant, and equipment for accounting basis for accounting and will only would only be payable if we sold the assets outside of the group. In other non-current liabilities is the warrant liability of $61.7 million.

We're required to measure that at 30 June using the Monte Carlo simulation model, which takes into account, amongst other things, the share price at the time and the the time value of those warrants. In those warrants, there's there's $30.8 million warrants, and the real value of the warrants is actually when you pay it out.

We have to pay out the warrants when we repay the subordinated note. The warrant payout is the Cobram Estate share price at the time we pay out that warrant, calculated as the higher of the 30-day trailing volume-weighted price and the 12-month volume-weighted price.

We then deduct the $3.20 strike price, and the difference is multiplied by the warrant the number of warrants and paid out. For example, if that price was $4.20 when it when the notes when the subordinated debt was paid out, if it was $4.20, we deduct the $3.20 share price, which gives you a $1 gain.

That would be multiplied by the $30.8 million warrants, and and the liability would be $30.8 million. Moving on Sorry.

Just another point to highlight here, our net debt ratio has increased from 32.7% to 35.6%. Just a comment on debt, the board are certainly comfortable with the debt levels, particularly with the level of tangible assets on our balance sheet, our assessment of forward earnings and and cash flow.

We will expect our free cash flow from the group to increase in the medium term, and as a result, those debt ratios are expected to come down. Tangible asset backing, these charts show the the tangible asset backing with where the purple bar is up to the the light green at 30 June 2026 compared to 30 June 2025 against our net debt levels.

This excludes any value relating to the brand and our leased assets. As we can see, $1.3 billion of real tangible asset backing.

Accounting for the acquisition of COR, I'll take a little bit of time to talk through this. We when we purchased California Olive Ranch, we were required to consolidate their balance sheet, and we do that by taking their their balance sheet at at the end of March 2026 and then adjusting those balance to balances to fair value.

The the column on the left-hand side is the COR the COR balance sheet on acquisition, and then we make a number of adjustments, and the column on the right-hand side is the the balance sheet that we adopt. The key movements that were assessed when we did this assessment of of our core balance sheet, we wrote down the value of inventory by $22 million, so that's an assessment of of net fair value of the olive oil.

The other key items, the right-of-use assets, so that relates to the leased olive groves. During due diligence, we'd recognized that these leases were onerous, and certainly and certainly require, us to turn them around, and certainly we're expecting to in the medium term.

As a result of that assessment on acquisition, we wrote down the the right-of-use or those leased assets by $34.9 million. The property, plant, and equipment increase of 50 $15.7, that relates to an external valuation of property, plant, and equipment.

The brands and customer contracts, we had this externally done, this was valued. That valuation was placed on the the brands, California Olive Ranch, Lucini, and also customer contracts, so that came in at $65.3.

Net assets adopted of $219.9 million Australian. This compares to what we pay or the accounting consideration, which was cash, vendor notes of $64.9, and the the purchase price warrants, the warrants issued to the sellers, less a small adjustment.

The total consideration paid of $245. The difference between that and the net assets is recognized as goodwill on our balance sheet, which is $25.2 million.

Again, all this is in Australian dollars. Moving on to sales, we reported sales growth for the year.

This chart shows the last 4 years of Australia and US sales, and I'll talk more detail around our packaged goods sales, which makes up well over 95% of our sales. From an Australian perspective, our sales grew only by 1.6%.

Pleasingly for us, Cobram Estate grew by 2.1%, and this was really on the back of a more competitive trading environment where we saw total supermarket sales across the category actually down by 2.6%. From a from a total Australian sales perspective, we reported a small decrease from $172 down to $170.6 million, and that includes our bulk sales.

In the USA, we we reported 82% growth in packaged goods sales. All of this growth was driven by the acquisition of California Olive Ranch, where it contributed sales of $35.1 million from for the from the California Olive Ranch brand and $6.7 million from the Lucini brand.

Cobram Estate, if you exclude big-box retailers where we had a big rotation in one of those retailers in 2025, Cobram Estate supermarket sales grew by 6.5% for the year. If you include that big-box retailer, then our revenue actually declined by 16.2.

Again, pleasing results given the category declined by 6.6% in dollar terms. If you include bulk sales, our US business sales increased from $64.6 up to $95 million.

From a marketing perspective, we continue to invest significant amounts across multiple marketing channels and strategic partnerships. Really a lot of our marketing continues to be on educating our customers around the health benefits and superior superior quality that we sell through our domestically produced olive oil in both Australia and in the USA.

Business update, looking ahead, the USA, certainly the COR acquisition and and the development we've been doing in the USA on our own grove development gives us a terrific platform to accelerate our growth and earnings. We're seeing continued growth in oil supply through both our maturing groves and by turning around a large portion of the California Olive Ranch underperforming groves.

We'll continue to drive sales, and of course, we have a much stronger retail footprint through the acquisition and and a much better brand architecture to leverage on. Of course, this coming year we'll have a full year [laughter] of California Olive Ranch earnings and a full year of synergies.

Excuse me. In Australia, we're expecting to continue to increase supply of olive oil as our groves mature.

Leandro will talk more around that in his slides, but there's certainly a significant amount of growth still to come from maturing groves. We continue to invest heavily in in marketing and selling our Australian oil in the domestic market, and again, this is really around education of the benefits and the health benefits of extra virgin olive oil that's been domestically produced.

Cost control is a big focus and focusing on production efficiencies, and as we've said in the past, the Australian business has transitioned to a sustaining CapEx level, which is around $10 to $15 million, and all our growth CapEx will be in the USA. From an outlook perspective, next year, FY '27, we expect EBITDA to be materially higher, driven by a couple of factors: firstly, the Australian crop, which will be an on year, and also the full year of earnings from California Olive Ranch and a full year of realizing the synergies of combining our two US businesses.

We also expect operating cash flow to be materially higher. In the short term, we're seeing trading conditions remain challenging, mainly due to continued discounting from our import competitors and and of course, cost of living pressures.

Debt levels, as I said before, we we expect our debt percentage to to come down in the medium time as the in medium term as the business generates more cash flow, more free cash flow. Really, we're excited by the the foundations that we've established in in two key markets, and Leandro will talk more on that in his slides.

Dividend, we announced a dividend this morning. We we're keeping the dividend flat at 4.5 cents per share.

It's still will be 100% or fully franked. Full details of the dividend are on this slide and in the announcement.

We will be offering a dividend reinvestment plan again, and the payment date will be the 6th of November 2026. Before I hand to Leandro, I'd just like to thank all of our employees in both Australia and in the USA.

It's been a huge year for the business, and there's been some extraordinary efforts from a number of individuals, which I won't name here, but you know who you are, thank you. You are very much appreciated.

Leandro, thank you to you and and your wife Lara for moving to California. It's certainly one thing buying a business, but integrating a business is is another thing.

We're very grateful that you're over there. You've been there nearly the best part of a year, on behalf of the company and the board, thank you for making that move.

No worries, Sam. Thank you.

Thank you to everyone joining us today. I think we can move into just straight to the next slide that, in very quick terms, this slide summarizes the scale of the platform that Sam was talking about and that we now have.

In Australia, we remain the number one olive oil producer and marketer with approximately 7,000 hectares of owned groves and 1,000 hectares of third-party groves and a mature production base that continues to grow. In the US, following the acquisition of California Olive Ranch, we are now also the number one producer and marketer of USA-grown olive oil.

In an almost identical position than in Australia, the production of our own groves, combined with third-party growers in the US, is approximately two-thirds, 66, 67% of the total amount of oil produced in the US. What I think is most exciting is that this scale, both in Australia and the US, is not static.

In both countries, a significant proportion of our future growth is already embedded in the business through younger groves maturing, new plantings coming into production, and as Sam touched on, the application of our operating systems across a broader asset base. Move to the next one, where we I will be turning to Australia first.

The FY '26 harvest was successfully completed on time in early July with a total production of 11.1 million liters of oil. FY '26 was unexpectedly lower yielding off year, but importantly for us, the production was still around 10% higher than the previous comparable off-year harvest in FY '24.

That is a good operational result, particularly when we consider that the oil accumulation during the past year was about 14% below long-term average due to seasonal conditions. In other words, the trees delivered a very strong volume of fruit, but the amount of oil within that fruit was lower than normal.

That distinction for for us is actually very important because it shows that the underlying productive capacity of the groves remained really sound. Looking ahead, FY '27, as Sam said, is expected to be an on year for most of our Australian groves.

I've been at the groves, for the past couple of days, and the trees are currently in really good shape, and winter conditions since harvest have certainly been encouraging. Rainfall have helped to replenish soil moisture, and importantly, we have not experienced any damaging frost events to date.

These are all positive conditions for flower differentiation, and give us a confidence subject, of course, as to normal seasonal risk, that FY '27 Australian crop should be materially higher than FY '26 and above the previous on-year harvest in FY '25. We can move to the next slide.

Very briefly say that despite the very volatile cost environment that we're all aware of, disciplined management kept FY '26 operating costs very much under control, excluding excluding largely water, and broadly consistent with the prior year. Obviously, we cannot control certain input prices, like fertilizers or fuel, but we can control efficiency, and that is why we continue to develop and invest in adopting technology, including the first new generation of faster harvesters that we successfully tested this year in Australia, and, for example, the the the rolling of automatic guided vehicles in different areas of the business, just just to name a few a few examples.

In terms of water in FY '26, like we normally do, nearly all Australian grove water was sourced from the temporary market at a weighted average price of $349 per megaliter. Rainfall timing helped to reduce total water use for the year, and pleasantly, recent rain have lifted Southern Murray-Darling Basin storage levels above the levels we saw this time last year.

Move to the next slide, where Well, in our modern medium-density production system, olive trees typically reach full productive maturity at around 8 years of age. Today, approximately 75% of our Australian groves are mature, while the remaining 25% are either immature or not yet productive.

That means that they're less than 3 years old. Based on the current plantings, as you can see in the for the graphs on the in this slide, our mature grove area in Australia is expected to increase from around 5,250 hectares to 7,000 hectares over the next 6 years.

That represents a 33% natural uplift in mature area without needing to plant a single additional hectare. The implication is is quite powerful because as these trees mature, the average Australian production, including 1,000 hectares of third-party growers that we have, long-term signed contracts, is expected to rise to around 20, 21 million liters per annum over a 2-year cycle average.

For an agricultural business, this is very attractive growth because it's already planted, is already managed, and is expected just to flow through as the trees reach full potential. Moving now to the US, as obviously Sam have touched on, we completed the acquisition of California Olive Ranch at the end of March.

It was certainly a transformational transaction for us. It added leading household brands, approximately 1,675 hectares of owned and leased groves, around 2,500 hectares of contracted third-party groves, and a large-scale mill, bottling, and warehouse in Artois.

Just just just probably as importantly, I would say it brought together two organizations with complementary strengths and a share commitment to high-quality extra virgin olive oil to help California successfully compete against lower-quality imported oil. I think that I'm stating the obvious here, but integrations of this size are never simple.

That's why we should acknowledge the effort required from both teams to to get us there. We are very pleased with the progress so far.

The USA operations are now fully consolidated, and most of the initial annualized synergies of approximately $12 million US have been already implemented. Obviously, as Sam touched on, because the acquisition was done late in the FY '26, the more meaningful impact will come through in FY '27 and beyond.

One more thing, importantly, past the initial costs and operating synergies that we touched on before, we see a larger opportunity to lift yields, improve production efficiency, and reduce cost per liter across the California Olive Ranch grove base. This is where our Olive.iQ system is highly relevant.

The aim is simple: more high-quality oil from each acre or each hectare, produced at a lower cost, and with better sustainability outcomes. I think as I said before, this acquisition, it is not only company-changing, but it is also industry-shaping.

The board of the company visited California recently and saw firsthand the progress being made. We all remain highly encouraged by the integration, the quality of the people, the scale of the opportunity, and the long-term prospects for a stronger Californian olive oil industry.

I think that I'm right to say that few food categories offer this combination of market size, consumer relevance, domestic production potential, and quality differentiation. Our role is probably almost simply, just to put it in those terms, to help unlock that potential in a in a disciplined way from from now on.

The next slide touch a little bit on our USA brand strategy that can be expressed quite simply saying that we want to make fresh the new premium. Obviously, for many of our Australian shareholders, this is a new This is not a new thing.

We think that We honestly believe that for consumers, freshness is easy to understand. Fresher products generally taste better.

They retain more of the natural character, and they're more closely connected to origin. Our ambition is to position California extra virgin olive oil as the freshest, most most trusted, and most desirable olive oil in the United States.

We are very conscious that that requires more than just marketing. It requires local production and the availability of it, consistent quality, a lot of consumer education, as well as credible industry standards, and a clear understanding of why, in this particular case, really origin matters.

In the case of California, the Olive Oil Commission of California already provides a very strong quality assurance framework, and we believe that industry bodies like the OOCC will play an important role in building that or helping us to build that consumer trust and lifting the overall category. Our commitment, and we've been very open about this, to transition all California Olive Ranch extra virgin olive oil products back to 100% Californian grown is the clearest expression of that strategy.

It links local production with freshness, freshness with quality, and quality with taste, health, sustainability, and an overall trust. I think that is a very powerful message for consumers, for retailers, for our growers, and large base of growers that we have in California, and for the industry as a as a whole.

Probably the last thing that I want to say on on this slide here, on the brands, Sam mentioned that new portfolio architecture. That architecture, for us, is very, very important.

In very simple terms, California Olive Ranch will be our flagship USA brand, representing the best of California extra virgin olive oil, and serving as the main platform for driving awareness, trust, and category leadership just like Cobram Estate does here in Australia. In the US, Cobram Estate will play a complementary role by helping us set a high standard for quality, and helping through pricing to recruit mainstream shoppers into premium California extra virgin olive oil.

Lucini, in the meantime, will continue to serve premium imported oil consumers who value provenance, craftsmanship, and also Italian heritage. I think these brands are designed to play distinct roles across the different consumer occasions, price points, and origin.

That is a major advantage that we have now. As you can see there the detail in this slide, we know through research that only a very small proportion of shoppers currently buy both California Olive Ranch and Cobram Estate, which tells us that there is a limited overlap, and and quite a meaningful opportunity to grow that total portfolio.

I think that together, these brands give us a broader platform to educate consumers, to expand household penetration, where there's a massive opportunity in the USA, and to trade shoppers up from unhealthy seed oils or commodity olive oil into higher-quality extra virgin olive oil. I think also that is a it's a sizable commercial opportunity because this this combined portfolio already has significant retail presence, and I think that the next step, the next stage for us is about using that established platform more effectively, with clearer brand roles now that we're all together, stronger investment in education, better shelf execution, and a more compelling link between Californian grown, freshness, and and quality.

Move to the next slide. I think that from the operational footprint perspective, CBO now has around 3,000 hectares of owned and leased groves in California that we manage.

We also have key operating hubs in Woodland, Artois, and Chico, they're all in Central and Northern California, supporting a wide range of activities, from milling to bottling, storage, warehousing, finance, HR, and supply chain functions. The map shows the geographic spread of our managed grove base, and some of those production assets in Northern California.

The two main production hubs, which are the purple and the light blue dots surrounded by green dots, provide a meaningful horticultural and water source diversification, but remaining still close enough, we're talking about 130, 140 kilometers, for efficient coordination across people, equipment, milling, and logistics, not that dissimilar than what we have here in Australia between Boort and and Boundary Bend. Move to the next slide.

I think that this this slide highlights the scale and the age profile of our Californian grove portfolio. The COR acquisition significantly increased the mature grove area, as we can see in these graphs, but importantly, I think it's worth understanding that these groves have not yet reached the full productive potential under our management system.

Although they are mature, they still have not fully realized that cropping yielding potential. At the same time, 37% of our Californian groves are still immature or not yet productive, and this figure does not include over 800 hectares that are going to be planted in the coming months that you can see in the graph of the right as as the bar in the year zero.

Obviously, that young age profile is a major source of organic growth organic growth coming coming forward. I think the the opportunity is similar to what we have seen in Australia over time.

When young groves mature, the production rises naturally, and when yields improve and fixed costs are spread over more liters, the cost per liter falls. This is why grove maturity, improving yields, and the operational discipline are actually so critical for the value of the of the company.

We move to the next one. Operationally, the USA business continued to perform effectively, while at the same time progressing the integration of the merged operations and several important capital projects that I'm going to touch on at the same time.

That is obviously a demanding combination, and because of that, I also want to acknowledge the professionalism and the commitment of our teams across all sites in the USA, and also the support from many of our Australian staff over this this challenging period. In terms of outlook, the Californian crop is developing well.

The flowering took place in April with good spring and early summer conditions, supporting good flowering induction, fruit set, and the early development of the fruit. Obviously, as with any agricultural crop, final yields will still remain subject to seasonal conditions, but at this stage, the outlook is encouraging to us.

We expect the production from our own Californian groves to increase significantly, mainly as the young orchards mature. Many of our third-party growers are also expecting a moderately better crop than in FY '26.

In terms of water availability, the situation also remains in in good shape, with our groves drawing from both surface irrigation districts and groundwater systems, and another favorable rainfall year in Northern California supporting full water allocation through FY '26 and what is about to start in FY '27. Moving to the next one, well, it's just showing some photos.

During the FY '26, we planted 340 hectares of new groves in California. These plantings form part of the early stages of a high-quality development in the Yolo County, close to our existing Woodland operations and other groves that we are already managing.

The images on this slide show some of those young trees, but I would say that, for us, the photos actually represent more than just new groves. They are the future supply, the future brand growth, and and the continued expansion of the Californian extra virgin olive oil supply.

We move to the next one. Touching on the the capital projects to come, looking forward, we plan to develop 840 hectares in FY '27.

They're largely going to be planted over the next 3 or 4 months, and a further 420 hectares in FY '28. That will take our total Californian owned and leased grove area to around 4,260 hectares by the end of FY '28.

These developments, we touched on this before, but worth repeating it, are being funded through free cash flow, debt, and the proceeds from the 2025 capital raising. Obviously, are an important part of building the supply that we need for our USA brand strategy.

I think that it's probably also worth saying that given the strong level of interest that we are receiving from prospective third-party growers willing to enter into long-term supply agreements with us, we do not currently have plans for further own-grove developments beyond those that are already outlined on this slide and and committed to to happen. At full maturity, the those hectares of Californian groves that I touched on are expected to produce approximately a bit over 11 million liters of olive oil on a 2-year average basis, excluding third-party grower volumes.

When we add our third-party grower base, the total future productive footprint in the US becomes very comparable in scale to Australia, and we expect that to reach or exceed 20 million liters, but with a more balanced mix between own production and partner growers. In practical terms, this is a long-term ag investment with very clear strategic logic.

We plant high-quality groves, we manage them exceptionally well, we process the fruit quickly and carefully, and then sell it through premium brands. This is the same, exactly the same tree-to-table model that has underpinned our success in Australia, just now being scaled in the United States.

The next slide, also with some photos, showing the preparation of the FY '27 development sites. I think it's important to understand that in permanent ag, much of the value is created before the first tree goes in the ground.

The land selection, the irrigation design, the soil preparation, all of that, and these images show that that that work progressing progressing well. Then in this slide, we've got to see the the Woodland site expansion, which has been another part of the US growth platform.

These investments are not not just about adding space. Obviously, they help improve our ability to mill fruit, to store olive oil, to test it, and then to distribute high-quality packaged goods efficiently.

They they also help us create a stronger working environment for for the people that we have, and support that technical capability required for a larger and more integrated US US business. Finally, on the last slide, I just want to touch on sustainability.

Since launching our 2030 sustainability strategy, we have continued to make meaningful progress across the business. In FY '26, in particular, highlights included progress on safety, really really good numbers on safety, great credit to the team, the specific team on safety, and the broader employee employee base that have contributed to that, waste management, and some sustainability-linked loan targets.

For the third consecutive year, we also deliver better than neutral greenhouse gas emission positions when considering Scope 1, 2, and 3 emissions across the business. We are obviously quite proud of the progress made, but we also recognize that this is and will be an ongoing journey.

For those that are interested in more detail, our FY '26 voluntary sustainability report is included in the 2026 annual report, and we will welcome any feedback or engagement from shareholders, customers, and staff that you may that you may have. I think that in in summary, we can we can say or I can repeat some of the words that Sam mentioned before, it was a year of significant execution and transformation for the business.

We successfully managed an Australian off year in a very competitive retail environment. We completed and began integrating a major USA acquisition.

We advanced quite important capital projects and continued to invest in future supply, strengthening the foundations of, no doubt, the world's leading vertically integrated premium olive oil company. I think that despite the potential short-term trade headwinds that may exist, the opportunity ahead is substantial, and we are very conscious that it will be realized through doing what we know how to do, which is through operational excellence, strong brands, quality without compromise, and deep commitment to to our people, growers, customers, and and shareholders.

Thank you, and I will now hand back to Sam for for questions.

Fantastic. Thank you very much, Leandro.

We've we've got some time for questions. Please, again, there's an icon on the bottom of your screen with a raised hand signal, and I'll call your name, and Rory, if you can unmute those as I call them.

We've got Ian Munro has got a question from Ords.

Yes, uh good morning, Sam. Good morning, uh Leandro.

Thanks for taking my questions. Um, just first one uh relates to um the purchase price um uh a- adjustment um uh that's still ongoing.

I'm just just wondering, are you able to provide any um commentary with respect to how long um we're expecting the the process to to play out? Um, is this a kind of a 6-month process, um anything of that um that nature?

Thank you.

Yeah. Thanks, Ian.

I think you're you're referring to the the $31.5 million US adjustment in our favor that we're disputing with the sellers relating to the the California Olive Ranch transaction. Firstly, this this adjustment relates to excess olive oil on hand at at acquisition, and there's a mechanism under the share purchase agreement that we can claim that adjustment.

The sellers are are disputing it, it is still going through a confidential legal process. Unfortunately, I can't give you much guidance on on timing, but of course, we'll update shareholders if we have any material information.

Yep, uh very good. I understand that um that's the case.

Um, just with respect to um the inventory uh adjustment on um uh within the acquisition accounting, um and then also uh your points around the onerous um kind of lease adjustments, are you able to maybe just give us a sense whether there's any um kind of earnings impact associated with those and um has much of that been captured in um the first 3 months of ownership um relative to to what to expect during FY '27? Thank you.

Yeah. I'll I'll just, in terms of the the first point on the the write-down the the olive oil, yeah, we we knew during due diligence that there'd be some expensive Californian olive oil on the balance sheet.

That's really writing it down to, what we deem as as fair value, similar to what we do with with our Cobram oil. There is There is some impact on our P&L for the for the first 3 months and going in into next year, but it's really more normalizing the the cost of sales more than anything.

In terms of the the write-down of the the leased assets, the leased liability we didn't write down at all, just the asset. The the earnings impact there is really a decreased depreciation going forward.

I would I would say I would add to that that in the case of the groves, on the position of the lease, and the needs for the groves to improve, that nothing was a surprise to us. It was all identified, and it was expected from the due diligence process.

It is part of where we can see that we can add value to, or or what we call the medium-term synergies, or the realization of those medium-term term synergies. Short term, that's the the situation as it as it is.

Very good. Um, and and just combining that that comment on the synergies with the actual earnings uh contribution in in the first 3 months of ownership being a little bit better than we expected, um, how how are you kind of seeing the I guess that that run rate into FY '27?

Is there any like, it feels like you've you've kind of gotten all of the um kind of due diligence items, fully transparent now. Um, how how are you kind of feeling about kind of P&L in into the next uh uh next financial year?

I think the of of the $12 million US, the majority's been actually realized, but obviously, from a 3-month perspective, not not annualized. The one call out there is the bottling line integration, which will happen probably half halfway through the year as as the new bottling lines on the water.

By the end of FY '27, we'll have all that fully realized, and then we'll get the full annualized savings in FY '28, but but a big portion will come through in in '27.

I would say, remember Ian that taking or with the transaction going through at the end of March, it took us let's say, a good part of a month and a half to 2 to complete the implementation of the synergies, there was actually not much room left [laughter] to to uh get get the benefit of that, seeing through. We are going to see definitely a lot a lot more of that through FY '27 and and after that.

Just on that um that US uh trajectory, um look, in terms of Californian uh extra virgin olive oil, sort of Cobram, COR together, as you've noted, uh 70% of of branded sales now, um how are you kind of seeing that um engagement from uh the US supermarkets? Um, this early in the transaction, um has that been sort of, better than expected, relative to to when you acquired it?

Thank you.

I think, it's fair to say that that retailers, customers, really like the fact that we're returning it back to 100% California, and of course, as does the industry and growers. It certainly, from a retail perspective, it takes time.

Some of these retailers, you're meeting once a year, it's not going to happen immediately. Certainly the feedback from the trade has been incredibly positive.

It it was certainly more of the case of for us clearly defining the portfolio structure, and I agree with Sam. The feedback from the industry in general has been very, very positive.

Once we have the the structure, it gets about the time to transfer that structure into the negotiation with the retailers, which normally and typically in the US are they require a bit longer cycles than than than in in Australia. Just um,

hopefully not outstaying my welcome here, just uh one more question, uh just please, on on the Australian business. Um, you've called out um uh like a challenging kind of environment with uh cost cost-of-living pressures, uh still I I know delivered growth in um in FY '26 in terms of sales.

Are you are you kind of indicating that conditions are getting worse, or is it kind of more of the same, and, what levers have you got on sort of price and volume over the next um 12 months to to try and um offset some of that in industry pressure?

I think, like any year, we plan to sell out of this year's crop by the time we get to to next year, and that's no different here. We are sort of seeing continued deep promotions from our import competitors, so that's more likely to just continue rather than rather than get worse.

Of course, on the top of that, there's soft consumer spending as well. From a promotional perspective, though, or our competitors that promote, probably no different to where it was, pre pre-COVID levels.

We've certainly had some good tailwinds in the last 4 years, nothing unusual, but but certainly makes us work for our sales.

Very good. Uh thanks, Sam.

Uh thanks, Leandro, for taking my questions.

Thank you, Ian.

We've got Mark Topi. Hi Mark.

We can't hear you, Mark. It might be an unmute problem.

No,

it seems to be unmuted, but we cannot hear Mark. No, still not.

Just looking at the sign, it seems to be unmuted, but we cannot

Can you hear me now?

Yes.

Oh, sorry. Yeah.

There was another bit I had to do there. Um, apologies for that.

Um, yeah, just just to pick up on that domestic client, and in terms of that European competition particularly. I suppose with the hot summer in Europe now, I'm just wondering, do you have any feedback as to how the volume coming from Europe might be impacted by that, or do you see any mitigation on that, Sam, going forward, in terms of the volume that might come into Australia?

No, I think just it would be if I can summarize, it will be probably more of the same. For the past the past 2 years, the production overall from the Mediterranean has been a bit above average, not not record, but above average.

The rainfall conditions and everything that they had during wintertime was allowing and driving another above-average crop, good expectations. What naturally happens as you've got really dry, hot summers, as you pointed out, some of those expectations get downgraded, but usually not catastrophically.

It's just probably all taking a little bit out of it to make it not a record crop. I think all things indicate it will be still another another strong, crop, which pleasantly is also matched by pretty strong demand for the product, globally, too.

Right. Okay.

Just that reference to the big-box retailer, does that imply a lower-margin contract that you had with this big-box retailer? Can you maybe comment or expand a little bit more as to the nature of that business?

No, not not necessarily lower margin. I think that big-box retailers generally operate at a lower margin themselves, we we price it so we're effectively happy with our our return.

With big-box retailers, the likes of Costco and Sam's Club, BJs, et cetera, some of their sales, and and this is what this is referring to, are rotations, where they'll they'll bring you in for 1 or 2 months into all regions or some regions within the USA. You can get lumpy sales, so that's that's really why we've called that out, very different to our core our core supermarket range.

Then

across the brands between Cobram and Red Island, I was just wondering, is there scope to, I guess, combat some of this sort of consumer pressure, or how do you see that, the ability, positioning your portfolio?

I think that's a good point between Cobram and Red Island. We've certainly been We have been discounting more in Red Island and and we have the ability to do that.

Cobram Cobram sales promotional discounting levels returned to more normal levels. We have the ability to do that, but but at the end of the day, we have a certain amount of oil to sell as well.

We I think we had something like 2 weeks' stock on hand at 30 June this year, we're always trying to balance not not overselling at the same time for a less-than-satisfactory commercial return.

Right. Okay.

Then, just lastly, domestically, the sort of talk about super El Niño, and it sort of looks unclear at the moment with the sort of rain that we've had, but some are saying it could still be relatively wet over the period. Just wondering, in terms of water purchasing, how you're thinking about that, as water prices have come off.

Do you sort of start to Is there scope to, buy some water now, or how are you thinking about the season going forward, given that El Niño sort of backdrop?

In in general terms, we've given up about trying to be smarter than the market, and we just continue to buy water as we need it, and ended up accepting to pay whatever has been the weighted average for for the year, because with the new expectations, everyone was saying, "Hey, here we're coming into a pretty dry period." We got one of the best, probably late winters [laughter] of the last few years with rain.

Just trying to trying to predict weather, trying to predict pricing, it's What we we made the view a long time ago that it's better not to try to play that, and just continue to buy as we need it, and we will maintain that that position.

Right. Okay.

Then Leandro, maybe just lastly, on the US, you talked about the yield enhancement potential with the Cobram sort of processes there. Can you maybe expand, is that like a Do you see that as a 10% or 20% increase in yield, over the next couple of years?

Can you maybe expand or give us a bit more insight into that?

Yes. If If we compare our average yields of our mature groves in Australia and some of the very early mature yield that we're getting from our oldest groves in the US in comparison with the current yields of the COR asset that we are looking at improving, our yields are more than double.

Right. Some significant upside then, even if you, yeah.

It's

depending on the asset and the conditions and everything, you may not be able to fully realize that difference, but certainly it shows what what the potential is. It's quite significant.

Any thoughts about time frame? Is that like a two to three-year project, or how would you see that?

Yes. Normally Normally, with olives, because of the cycle that they have, you're looking at a two to three-year cycle to really get at least the bulk of it.

Then there will be a bit of an ongoing thing, but two to three years you normally get, the big jump that you're expecting.

Very good. All right, thanks for your Thanks for your time there, both.

No, no problem. Thank you, Mark.

Thanks, Mark. We'll go to Apoorv next, who's been on on there for a while with his hand up.

Morning, Leandro. Can you hear me okay?

Yes.

Yes.

Brilliant. Awesome.

Thanks, guys. Um, I've just got a few follow-ups from some previous questions that were asked.

Maybe just one on the water strategy. Obviously, you you buy on the market, temporary sort of water costs there.

Is there any consideration around maybe buying permanent water rights at all to try and hedge against the future risks of water costs going up, or water prices going up?

We we definitely considered it. I think, we've decided that our our capital's not best used having permanent water on our balance sheet.

I think I think just as a reminder, even if you do own permanent water, you don't get any allocation until until the authorities announce there's an allocation. In those really dry years where there's limited allocations, or less than 100% allocation, you still got to go out and buy temporary water.

We made the decision a long time ago just to purchase water on the temporary market. We understand that does create some volatility with cash flow and and earnings, but we think that's certainly the best use of our capital and and cheapest access to to water over the long term.

Mmm.

Okay. Just a sort of a broader question on El Niño having been declared and assuming the effects of that actually play out in the next 6 to 12 months.

You've obviously got opposite effects on Northern Hemisphere versus Southern Hemisphere. Overall, when you look at Cobram as a group, is that Do you see this like a net positive or a net negative for the group, all things considered?

Probably neither one or the other. The

Okay.

the impact of El Niño it it varies a fair bit depending on where you are in the Northern or the Southern Hemisphere. Just to say, look, [laughter] if you're in Peru, for example, you get massively impacted.

Australia has a fair bit of impact. As you move to some other areas, like for example, the Mediterranean, or or even California, the impact of El Niño or Niña years are not as clear.

At least if we go, for example, by the situation in California now, winter conditions, really good rainfall so far, storage is full, everything is in good shape, it has been for the last 3 or 4 years. If we look at Australia now, current storages are actually better than what they were last year.

Even when now is supposedly to be an El Niño and last year we were not, it it's it it's a bit different. Now, if we go into what the typical El Niño is during the growing season, we're talking about dry conditions for Australia, olives actually like it, like [laughter] providing that you have the water to irrigate them and setting aside the price that you may end up having to pay for water or not.

Dry, warm weather during the growing season is actually, in general terms, a positive for olives, that's what they are prepared to to handle. I prefer that rather than wet, cold summers, which is not what the olives like, which is typically more of a of a Niña year in in Australia.

Mmm.

Okay. No, interesting.

Um, just one final one maybe. Just um with the discussion on the domestic market and some of the pressures in Australia, there was a comment made that you're investing heavily in marketing in FY '27.

Um, can you just maybe just outline for us as well like what the Cobram marketing strategy looks like and maybe what kind of dollar step-up you're expecting in marketing budgets for for '27 in Australia?

Um certainly not not so much a a step-up in dollar spend. We've we've invested heavily in marketing over the last 15, 20 years, so that that won't change.

It typically tends to increase in line with with the sales levels. Our our whole marketing is really about differentiating our product, educating consumers on the usability of olive oil, the health benefits of olive oil, and really calling that out.

Going going really hard on on quality, freshness, and very similar marketing messages to what we what we do in both countries.

Great. Thanks, guys.

Appreciate the time.

No worries.

Thank you. We've got Lindsay.

Can you hear me there?

Yes.

I got three questions, if I may. Um, the first one is for Leandro.

When you acquired California Olive Ranch, did you lose any of the key American personnel as a result of the acquisition? Um, the second question, if I may, is, I subscribe to the California Olive Ranch website.

I get an email every week or two. There's two questions.

One, are you selling much directly online? Two, there always seems to be a lot of discounting.

For example, on the 9th of July, I got an email about 20, 25% off Miller's Blend. My third question is, on a broader scale, management succession succession.

Leandro is, obviously, magnificently skilled in understanding olives. What happens for the company if something happened, God forbid, to Leandro today, tomorrow, next year?

Then also, indeed, for Sam. Good.

I'm happy to take on probably the first couple. Certainly, the restructuring of the two businesses combined from a staff point of view required a fair bit of our commitment, and what we have done is a very, very thorough analysis of the capabilities across both businesses, keeping best people for the different positions.

We're quite happy with the outcome of that process. That obviously drove part of the synergies.

Whenever we identified there was a a need for additional resources, we've been working through it, and it's still the process. We are But that is an area that we are quite pleased with how things have progressed.

Putting in a different terms, no one that we wanted in the US to stay working for us has left, which is is a is a pleasant thing overall.

In terms of And still

in terms of succession, we do have pretty strong I normally end up being the face, but we have very strong horticultural teams in both countries, in in Australia and and the US, as well as pretty well-trained staff in on the milling side. Obviously, through education, systems, structures, what we do with olives and the trees, irrigation, monitoring, pruning, fertilization, all that, is pretty well documented.

I could hopefully win the the lottery [laughter] and the company wouldn't have to worry about it. It it's all pretty well structured behind.

No, I would agree, Leandro. I think that, we've got an exceptional executive team and management team that you don't see on these calls, but certainly, we we're very mindful to make sure we've got talent coming through.

That's, one of one of their our tasks. Like I said, we've got a very, very strong team.

The third, I think the point was on the online sales.

Online in the US.

In general terms, I think that both both in Australia and in the US, olive oil is not a category that particularly sells significantly online. In the US, in particular, the sheer amount of retailers that you have in every single location makes it the physical reach to the store even easier than what it is in in Australia.

That somehow limits a bit the ability of the online sales combined with, postage costs, etcetera, etcetera, to really take off in comparison with the more traditional brick-and-mortar sort of retail retail sale. Although we try to continuously develop it, it's certainly is at the disadvantage because of the number of selling points that retail would have in in the US.

What about the discounting? Like I've I've got this one in front of me on my other screen.

"Miller's Blend, unlock 20% off", it says, and and taking take 20% off with a flavor code, FLAVOR20, and you got 24 hours to do it. It seems to be a lot of discounting going on your on these California Olive Ranch emails that I'm receiving.

I think I think, probably importantly, that when you sell direct, you're you're cutting out the retail margin, certainly a discount to to shelf price. The the return to us as a business is relatively similar.

You're still making a profit.

Yes.

Technically, you're also using it as a as a way of driving trial, driving awareness, driving household penetration. It's a combination of two.

You still retain pretty good margins, and use it as a bit of a way to hopefully tempting you to try the Miller's Blend.

You'd buy buy it online.

It is a great it's a great oil.

You buy it online, and then maybe buy it next time in the shop.

Yes, exactly, Lindsay.

Thank you, gentlemen. I look forward to receiving my dividend.

Thank you, Lindsay.

Thank you, Lindsay. We have Miguel.

Good morning. Can you hear me okay?

Yes.

Yes.

Perfect. Thank you very much.

Sorry, I I I missed the introduction bit, the remarks. I have just two questions.

Apologies if those have already been addressed. The first one is a follow-up question on a previous question.

This is this dispute about the price paid for California Olive Ranch? I think you made a reference to something to do with an excess olive oil, an inventory issue.

Could you just elaborate a little bit more, because I guess if there is a dispute about that olive oil, if it was inventory and it's no longer there, it was transformed into cash. Just to better understand what has exactly happened happened there.

Then, the second question, one related to to M&A. I'm sure that you're aware of the the sale process of Deoleo.

At least in the Spanish media, some of the sources have quoted Cobram as an interested party. I don't know whether you can comment on this, confirm or or deny.

Those were my two questions. Thank you, thank you very much.

Look, unfortunately, I can't say too much about the dispute. The olive oil is there, though, to answer that question, but I can't comment more because it is going through a confidential legal process.

In terms of the M&A, yes, we did see that that had been reported, but that reporting is false. We're not an interested party in that M&A process.

That's very clear. Thank you very much.

On the first question, I understand that you cannot elaborate, but given the nature of this dispute, I guess the the time frame for a resolution is is fairly short. It should be sorted out one way or the other in, I don't know, 2, 3 months maximum.

Am I right, or am I missing something?

It's going through a legal dispute, it'll go through a legal process, and it could well take longer than than several months if it if it goes through the courts.

Understood. Thank you very much.

Thank you.

Thank you.

We've got time for one more. Mark, you've put your hand up again.

I think you've got another question.

Right. Can you hear me then this time?

Yeah.

Yes.

Great. Um, just a a follow-up.

Just, the the the scale of your third party in that you're looking going forward um, purchasing in the in the US. Can you just maybe expand on on the sort of the pricing model and and would you disclose kind of the input cost or so we better understand just how the pricing, cuz it's going to be looks like it'll be quite significant in terms of third-party volume that you'll be buying in the US.

The the third-party supply in the US, which is, again, we're referencing roughly likely to be around 50/50 if we talk about, by the time our trees mature and everything else, it it has a different mechanisms. Different growers have different type of contracts, but broadly you have more fixed-type contracts, let's say, a bit closer to what you typically see out of grapes, supplying to wine, linked to, the quality and quantity of oil in the fruit delivered to the mill.

Those contracts are normally relatively shorter term, 3 to 4, 5 years and then sort of normally get renewed and renegotiated. Then there's other group of contracts which are more similar to what we currently have in Australia, which are, look, more market-based contracts, essentially they're very long term where the growers share a similar value of the oil that we realize through the sales with the brand minus what we have agreed through those contracts as part of for the brand royalty, marketing fee or whatever we call it.

We we think it's a it's a valid position to have a bit of a balance between between both in terms of spreading risk. Overall, the the the the net return to the grower is not significantly different.

One is a bit more reactive than the other, but certainly both contracts or both type of contracts deliver good good returns to to the company or or satisfactory returns for for the effort of of doing it.

I'm just, thinking about the forward position, just to try and understand that better and maybe you'll be able to sort of expand on that going forward. It's not priced against an index in in the California Valley or anything like that.

There's no pricing mechanism that we can sort of look to to understand how, this olive oil pricing will will sort of transpire in the future?

No, there's very little oil per se traded in California. The vast majority of the production of oil in California is already contracted either to us or to some other processors on very similar mechanisms.

There's no such a thing as a Poolred, index as you got in Spain. It's it's more set for those for the values on those on those contracts.

Great. All right, thanks again.

No worries.

Thanks very much, Mark. We don't have any more questions, I'd really like to thank all our shareholders for joining the call.

We're certainly around if there's any any further questions. Just contact Leandro and I directly.

Thanks for your support. We're, as Leandro said, very excited by what's ahead for the business in in both Australia and the USA.

Thank you.