Today we have CEO and Managing Director Kesh Nair and CFO Marc Lichtenstein. We have a Q&A function at the bottom of the screen, please ask your questions there.

I will now hand it over to Kesh to take you through the presentation.

Thank you, Daniel. Morning, everyone.

Thanks for joining us today. As Daniel mentioned, we've got Marc and me as well.

We're presenting the FY26 results. Today's presentation, we're essentially going to be discussing the reset of the business, transformation, and restructuring, and what we've done to essentially produce a healthier balance sheet compared to what we have previously reported.

We've acknowledged the challenges of the past and taking full responsibility in addressing these issues within our control, but having said that, we've worked really hard in what has been a tough year in FY26. We've had to make some strong decisions to essentially simplify our business structure and also look at exiting some of our underperforming businesses such as Alliance and OFLEXO.

Alongside this, we've also experienced some market dynamic changes in our ITAD business, moving commonly particularly in America, ISP Tech. We've experienced some commercial challenges where we saw the ISP business didn't really fit into our operational structure as well as perhaps our commercial structure as well given the state of our balance sheet.

From a commercial perspective, it was appropriate to look at divesting ISP and further reduce the risks in our balance sheet. In addition to that, we've successfully restructured the convertible notes with Sammy and Daniel, which was really important to the business.

It gave us certainty in our capital management going forward and alongside this it helped us look at the business better and create better foundations. To sort of summarize, in FY26 we've stopped the cash drain of the underperforming businesses.

We've used the proceeds of the ISP divestment as well as cash reserves to essentially do an aggressive paydown of our debt, which as you guys would have seen in the announcements materially changed our balance sheet, reducing our net debt from $38 million all the way down to $18.3 million post the settlement of convertible notes. What this really means is we've created a platform for true organic growth for continued operations.

It's very important to say that the turnaround is not the conclusion. It's not our destination, but it's a platform that we're using to propel us into FY27.

We've done an extensive review of our businesses to understand what works, what doesn't, and created specific strategies for our divisions to firmly focus on debt reduction, increasing our cash conversion, and of course increasing shareholder value as well. Moving forward, Daniel, to our business overview.

We've got two primary divisions, Resource Recovery and the Packaging divisions. We're still going to look at some ITAD regions where we believe there's good margins as well as shorter cash conversion cycles, basically that make sense for the business, we'll proceed.

Really, as you can see from the results, Packaging has been the primary growth engine and it's a clear standout performer. We've got a very good sales team that delivers every year.

The results have shown this: 10% revenue increase as well as EBITDA increase of 48% in FY26, which is great. It's a business where our customers really like us because we provide an end-to-end solution from designing packaging to creating packaging.

We've gone into premium products such as bulk bags and pouches. We're confident this will continue in FY27.

As for our Resource Recovery division, it's got a global collection network. It's quite extensive.

It's got 260,000 collection points. We're continuing to collect products such as printer cartridges, cosmetics, and do recycling and reuse of these products.

We're also really focusing on bespoke logistics models and customized data capture capabilities, which not only helps from an ESG compliance perspective, but also helps our customers create quite a competitive value chain that they can pass on to their customers as well. I'll move it on to Marc now to talk about the continued operations and financial results.

Thank you, Kesh. I just want to touch on the highlights, and I'll get into some details as we go through the presentation.

The key points here on this slide are very much in a very positive outlook and a good performance for FY26 in spite of the restructure of the business. The reason for that is we report on continuing operations.

Any of the businesses that we got rid of during the course of the year are classified as discontinuing operations and essentially get excluded from the numbers, and I'll talk to that in a bit more detail as we go through. Most importantly, our revenue is up.

This is from the businesses that we had last year and the same businesses for the full year this year. That was the $125 million, that's why you see it's up almost 6% from the previous corresponding period.

What's pleasing is our gross margin percentage has gone up from 31% to 36%, which then drives the gross profit increasing overall. That's a good outcome.

On the back of that, with an increased gross profit and an increased gross profit margin, naturally our EBITDA has increased. Our EBITDA is increased by 34%.

It's a good outcome for the business. The EBITDA margin itself has increased.

As we've said in previous presentations, to some extent we're a volume-based business. We put more in the funnel at the top, more comes out the bottom.

Our cost base is relatively static. That's where you see the gross profit margin increasing.

As we get more growth in the future, we will expect that gross profit margin to rise to levels where it's been in previous corresponding periods. Then the NPATA, which is net profit after tax and amortization, we take the net profit after tax and we add back the amortization component.

Now this was a very important number in previous periods when we owned the ISP Tech business and with all the intangible assets that we had recorded on our balance sheet. At 30 June we've written off a number of these in result of the sale of three of the businesses and the restructure of a fourth business.

I'll talk to these in a bit more detail. The NPATA is still a positive number, and it's moved to a positive number from a lost position in previous periods, which reflects the improved performance of the business.

Daniel, as we go through to the next slide, this financial year, if you take a look at the snapshot, where's the area that we focused on? The key has been about the portfolio reshaping.

It's the sale of the ISP Tech Services, Alliance Paper, and OFLEXO businesses, which all three of those were divested during the FY26 period and form the basis of the results from discontinuing operations. These get excluded from our overall result.

Then we've also restructured the plastic recycling business, and that was a very important exercise that we undertook during the course of this year, where we had three sites and we rationalized them down to one profitable site. Again, we'll touch on that as we go through.

As I said, the continuing operations, which is the rest of the business, has grown by 6% in revenue and grown at an EBITDA level and grown at a gross profit level, in both terms of absolute dollars and percentage points. Remember, we pay our bills with dollars, not percentage points.

It's grown in both parts. The other key point that I'll touch on and get into a bit of detail, but that's really the key focus, has been the net debt position.

Perhaps this is a good time to talk about our net debt because our balance sheet had to be restructured during the course of this year. We've managed to achieve that with the sale of three businesses.

We've been able to pay down a substantial amount of debt from the proceeds that we received from the sale of three businesses as well as additional cash that we had sitting on our balance sheet, which allowed us to reduce our debt by approximately $16 million U.S. dollars.

The reason I use U.S. dollars is because our debt initially was classified as U.S.

dollars. Post-year-end, there's been a further reduction in debt because our convertible notes, we were able to restructure them, and the shareholders agreed on the 9th of July with our process of restructuring, and we converted a big chunk of the convertible notes into shares.

I'll talk to this as we go through the slides further on. Our net debt after year-end is reduced by a further 52%.

Our net debt is only $18 million, which makes our balance sheet very much stronger. I'll hand back to Kesh to talk about the strategic initiatives, and I'll cover more on the financial piece as we go forward.

Thanks, Marc. Echoing Mark's commentary there, in terms of our strategy, it's still quite consistent in our five pillars.

It's still designed to gear towards organic sales growth, creating operational efficiencies, and increasing free cash in the business, and obviously ultimately providing sustainable returns for our shareholders. The goal, as a business, we still want to be in the packaging and circular economy space moving forward.

We are quite innovative in terms of the products we've created from our packaging solutions, where we've converted jars into pouches to help our customers with supply chain costs, as well as tonaplas where we're getting end-of-life packaging materials and toner from toner cartridges to create sustainable products for the market. That still will be the focus of the business moving forward.

Really, the underlying strategy is to really focus on how we manage these goals that we have: got strong KPIs for sales, strong KPIs around how we manage costs moving forward. To go into the next slide, Daniel, I'll pass it on to Marc to talk through the first initial points and I'll come back for the end.

Thank you, Kesh. We talk about packaging performance and how are we going to improve packaging performance.

We've seen some good growth in packaging performance, particularly over the last quarter of FY26 and into FY27. We've managed to invest in the sales team, we've invested in people.

We're also focusing on increasing our customers' share of wallet, make sure they buy more from us. That's what we mean by share of wallet: can we get more out of their cash and out of their available resources?

We're looking to leverage the South African and Australian businesses. That gives us more buying power.

There's a lot of similarities between the businesses, and making sure that we share the knowledge and know-how that we generate in each of the businesses. As part of sharing that knowledge and know-how is to continue to invest in R&D.

R&D is what keeps us ahead of our competitors, which gives us our competitive advantage in the marketplace. For example, if we're doing development in South Africa, let's see if we can replicate it in Australia, or vice versa.

Those are the key pieces of the packaging performance: investing in our people, investing in our capabilities, managing to get more from the share of wallet, and an R&D component. Then if we look to improving our cash conversion, that's something that we should always be doing as a business.

It's a good corporate governance, it's a good way to operate the business. It's really about a focus and measuring people and KPIs, making sure we collect our debtors on time, making sure we use terms that we have available from our suppliers, albeit paying within terms, but nonetheless making sure we have a focus on cash flow and cash flow conversion.

What we find is that we focus on cash conversion and our collection terms improve over a period of time, and we've seen that in some of our businesses where we focused on that and we've been able to bring in our debtors days significantly over the FY26 period. Now that we've been able to do that in some businesses, we really need to replicate that across the entire group.

Albeit it is often challenging with OEMs, as we call them, original equipment manufacturers, the likes of HP and Xerox and Brother and those sorts of big conglomerates, quite difficult to bring in your collection terms, but it's something that we focus on because they always pay you, but they pay you on their terms, not your terms. That's one of the challenges dealing with these large multinationals.

Cash conversion is right at the front of the queue of where we need to focus as a business going forward. A continued improvement.

Kesh, I'll hand back to you.

Just to touch on the packaging piece there, it really comes down to how well we execute sales. We're constantly working on our sales processes, training to refine our craft and really recruit people with intent to ensure we're getting the right hunters in sales people to build a strong pipeline.

Over the years we've done a good job in relationship building and delivering reliable service to our customers. From that, I want to make a call out to the South African Packaging division where they've done a great job on increasing their revenue by 38% and also the EBITDA is up by 42%.

It's a direct result of the hard work that the guys have been doing over the years. Good to see.

The OEM expansion, we've got 260,000 collection points. This infrastructure is predominantly geared to collect printer consumables.

We're also looking at getting e-waste products, cosmetics, and growing that market. If we're at a site and already collecting printer cartridges, we can also collect e-waste.

What this does is keeps our costs of logistics relatively low while we're on site and we can add on more products and therefore increase our revenue but keep our cost base relatively low. We also are looking at moving into bespoke refurbishment processes.

Currently when we collect consumable products, we do data capture and essentially shred it so they get destroyed. Where we want to move into a space where we can reuse the product.

This creates a better commercial outcome for our customers if they can recirculate the same products in the supply chain, and also enables Close the Loop to charge higher margins for these premium value-added services. In terms of cost efficiencies, Marc touched on earlier, we're always looking at how to manage our costs better.

We're not only looking at cutting costs down, we're also looking at optimizing costs. Particularly in our U.S.

Plastics Recycling division, we're able to consolidate sites and reduce our overheads. Essentially we had about three facilities, we've now consolidated that to one facility, which has given us more capacity, but also a better profitable outcome in that division.

Our recycling plant in America is delivering a 30% labor gain, which basically means it's increasing throughput, we can have greater volumes coming to the site without adding much costs in our labor force. Managing labor and logistics is really important for the recycling divisions because it directly impacts the gross profit for these businesses.

This will be a key area of focus moving into FY27. Packaging divisions as well is mainly streamlined.

We're continuing to do software integration to streamline the administrative costs, which enables free time for our sales and customer service teams so they can focus on customer relationships and building a stronger pipeline. Over to you, Daniel.

Thanks, Kesh. Now we talk about the financial statements.

This is the bit where I watch the numbers of all the participants disappear because they think it's boring, we're talking about accounting standards. I get excited.

Let's talk about the financial statements, and let me just explain that again about what I mean by continuing operations and discontinuing operations. The accounting standards say that discontinuing operations, if you sell a business, you get rid of it, you don't count it.

When we look at the revenue, you say $118 million, how's that possible? What happened to ISP?

What happened to the other two businesses that we sold, Alliance Paper and OFLEXO? We don't count it.

It goes below the line, it disappears. What that means is the $118 million for last year, that's our continuing operations.

For the same businesses, like for like, we did $125 million. That's how we get what we talk about continuing operations versus discontinuing operations.

We're trying to compare like for like, and that's what the accounting standards say we need to do. Hence I touched on, that's why you see the increase in revenue.

Our core business, the business that we go forward with, have grown. They've shown good improvement at both the gross profit level, at a revenue level, at an EBITDA level.

That's a good story for us. Included in these numbers is the costs that Kesh touched on, the costs of restructuring the plastic recycling business.

The costs associated with closing down those two facilities are included in our profit for the year, right? Because that's not classified as a discontinuing operation, we got rid of the business, we just changed the business.

That's included in there. For the savvy readers of our financial statements and those who couldn't wait to get their hands on them this morning, they would have looked at the segment notes and they would have seen, "Hang on, you've made a loss in your Resource Recovery business.

What's going on there?" Let's just jump to the chase for that one.

That's the restructuring costs associated with plastic recycling and the head office costs, because historically Close the Loop had some Resource Recovery costs going through the holding company. For its sins, the holding company costs get put in Resource Recovery.

The packaging side gets a little bit of a free kick, to speak. The packaging profit is slightly overstated in the segment notes and the Resource Recovery slightly understated.

Nonetheless, we report as a consolidated group and it doesn't really matter in which bucket everything goes. The key number is that we had a $12.4 million EBITDA, right?

That's the main thing that we wanted to show here. Obviously you'll see our depreciation, amortization has decreased quite substantially year on year.

That's because at 31 December, we wrote off some of the intangibles associated with the restructure of the plastics recycling business. As I touched on before, NPATA used to be a big number for us and very important for us to say what's the true position of the business.

As we go forward, net profit after tax will be the true number that we look at because all those intangibles are going to disappear from the business combinations because we've disposed of those businesses. Overall, even after net profit after tax, we made a small profit of $31,000.

We have been profitable for this year in spite of having a year of restructuring and reperforming and rightsizing the ship, and we still managed to be profitable. The future looks positive as we go from this.

Then you'll see the final bullet point there, the loss from discontinuing operations, and you say, "Well, how did you lose $105 million?" That's the intangibles that we were carrying on the balance sheet that we had to write off.

We wrote those off because we got rid of those three businesses. The accounting standards say you must pull out your profit from discontinuing operations and show it separately, what we call as accountants below the line.

That's the $105 million that we've lost, but that really is book entries. We didn't lose $100 million in this current year, and you'll see that as we talk to the balance sheet.

As we go to the balance sheet, you'll see here probably the most important numbers on this is what's happened with our net debt position. I touched on that earlier, but the key point here is that you'll see our net debt has gone from $53 million down to $38 million.

Then as we put in this morning's announcements, reduced a further amount to $18 million. There's a further almost $20 million reduction that's occurred effectively on the 10th of July.

That's because we renegotiated and settled on the convertible notes. If I can remind everybody at this moment in terms of what we did: we sold ISP, we sold Alliance, and we sold OFLEXO.

We took the proceeds from those businesses and paid down debt. We also had some excess cash, which is why you see our cash balance going from $32 million down to $16 million.

We took $10 million Australian dollars of cash and decided to pay down debt at the same time as we settled on the ISP Tech Services business on the 19th of May. Thereafter we also renegotiated the convertible notes.

If you recall, we had two convertible notes of $7.5 million U.S. dollars each payable to Sammy and Daniel Salom, who are related parties.

We agreed to settle the first note by converting it into shares at 37 cents per share, and we also agreed to settle the second note by way of a conversion at 20 cents per share and a balance of $4.5 million that would be paid in cash. That's $4.5 million U.S.

that would be paid in cash. The first $2.5 million will be paid at settlement when we go through our refinance.

We'll talk to the refinance on the next slide when we get there. If you look here at our balance sheet, you'll see all our borrowings, everything's current.

It was current last year, and that's because we breached our bank covenants. We've complied with our bank covenants this year, and so in theory we could have carried our borrowings as non-current borrowings for a big chunk of that.

Because we've indicated to the market and our bankers PGIM have indicated that we will complete a refinance by 31 December, we have decided and elected that all the borrowings should be classified as current because they will be repaid in the next 12 months, even though we have a facility that expires in 2029 and we continue to have the ongoing support of our bankers. We are looking to change bankers, and we'll talk about the implications of that.

That's a key point and a key focus here is the borrowings, the net borrowings, the strength of the balance sheet. Naturally people might notice and say, "Well, why is your inventory gone down from $24 million to $6.3 million?"

That's because of the sale of the ISP and Alliance Paper businesses, which had strong inventory amounts. To confuse people even further, we restate the income statement for continuing and discontinuing operations, but the balance sheet remains the same as what it was at 30 June last year.

That's just a test to see if anybody's still listening, and I'll ask questions afterwards. As we go forward, you see that our covenants were reset during the course of the year.

We complied with all our covenants 30 June, and our net debt really is the big story here, which has improved. If we go forward to the cash flow slide, please, Daniel.

The key point here is perhaps the focus where over the years gone by the analysts always chased me and said, "Marc, your quick cash conversion rate, and how does that work? Needs to be 100% of EBITDA."

What we're saying is that the cash receipts that were received from customers less the payments to suppliers, and then you have a net difference there, divided by the EBITDA, gives you what we call a quick cash conversion, which you'll see here is 90%. It's improved from the previous year.

Here's a good example where you see we looked at your cash receipts: last year $204 million versus $135 million this year. We don't restate the cash flow statement.

What we do see is that our quick cash has improved year on year. Now another key point to focus on is the CapEx.

Our CapEx has reduced from $3.3 million to $2.4 million. I've always said historically that our CapEx will be similar to our depreciation.

I'm happy to announce that I think our CapEx over the coming years will be less than our depreciation. We've made all the investment in the businesses that we needed to make over the recent years.

If you actually go back to 2024, our CapEx spend was $10 million. Now I've said before on previous presentations that when we invest in Resource Recovery, where the vast majority of our capital expenditure goes, we invest in equipment that we might write off over 5 to 7 years, but actually in reality the equipment lasts 10 to 20 years.

It's really maintenance that we incur some costs, and if you look after these pieces of equipment they last for a very long time. That's where we start to see the benefits now, where we've taken the pain in previous years, there isn't significant capital that's required to be invested in the various businesses.

Our most recent investment was made in the plastics recycling business, and that's been well reflected in the improved performance of that business since that new capital investments come online, and that's improved the profitability of that business. That's been very pleasing to see that our return on investment is coming to life and wasn't just a piece of paper.

It's actually showing through the actual results and cash generated by that business unit. We would expect our CapEx in future periods to be in the range of $1 to $3 million, but we don't think there's significant capital that's required to be invested in the business.

Our maintenance is maintained by people on staff, it comes through salary and wages rather than having to be outsourced and seeing it being capitalized. I've touched on already about the disposal proceeds being used to pay down debt.

The other one is the lease payments being lower than previous periods. We have fewer facilities.

I've touched on the plastic recycling facility, but we've got rid of a couple of facilities across the group and been able to streamline the business, which makes our lease payments decrease. I wanted to touch on then our capital management.

I've touched on the borrowings and all that already, but I want to reiterate that we're well advanced in our refinancing process. We've told the market that we would be refinancing by 31 December.

We completed our pre-lending refinance review last Friday, and we're well advanced with a couple of major first-tier banks that will allow us to make some significant savings in the interest rate that we were paying. We're expecting between 350 and 400 basis points, or 3.5% to 4% savings in the interest bill.

Obviously we'll have a slightly lower borrowing amount that we'll be going forward with, but nonetheless it's a significant saving to our interest expense, which is a true cash-positive outcome for the business as we go forward. That's the key financial piece that I will hand back to Kesh.

No doubt there might be some questions on the finance piece as we go forward.

Thank you, Marc. Far, everything we are doing in FY27 or everything we've done in FY26 as well, it's all designed to build a better sustainable business model and increase the shareholder value for the long term.

The key word there is long term. As Marc mentioned, we've got cost-heavy areas like Resource Recovery, which we're actively managing.

Those businesses have factories and a large labor force that do processing of these recycling products. We're making sure we're focusing on initiatives that can streamline the costs in those areas.

We're also making sure that every dollar that we're spending on working capital is used sparingly or intelligently where we know it's going to get a quicker and a more profitable return, which has been a key learning over the years for us. Then in terms of the top line, we're investing in smarter systems around software for Packaging divisions as well as procurement and innovation.

Particularly on procurement, where every day we're focusing on restructuring procurement to buy as a single company, as a unified group, which helps us unlock better purchasing terms as well as help us manage our cash better as well. We're pivoting into selling high-margin products and expanding into new regions.

We recently gone into New Zealand. We've got a small sales team there that has already shown positive results, which was just great to see.

Packaging is a division where the sales processes can be quite easily replicated, because we've refined the art of from quotation to manufacturing really well. It's a business where we feel like we could quite easily move into new regions and that will be a key focus moving forward into FY27.

All these initiatives, they're all designed to reduce debt, improve our balance sheet, and provide better returns for our shareholders. I'll pass it on to Marc now to go on to the next slide to talk about forecast and outlook statement.

Thank you, Kesh. The key point here is about strengthening our balance sheet.

We've taken the last year, FY26, we're not 100% of the way there yet, but we are a long way towards the restructure of the business, restructuring, strengthening our balance sheet. In order to do that was about the ISP Tech divestment.

We sold the business for U.S. $9 million that was paid at settlement and then a seller note of $1 million.

Those proceeds went straight to our financiers to reduce debt. That was a big step through the restructure.

We continued with our debt reduction post-end of the year with the restructuring of the convertible notes that I've touched on already. Then the refinancing funding costs, I've touched on that already.

I guess some savvy investors are going to ask me, "Well, what does it mean when you reduce your debt by 3.5% to 4%?" Overall, the back-of-the-envelope amount says your interest bill will decrease by about a million dollars, and I can go through that in more detail later on.

That's really a key point that it's cash that we don't have to spend and that's a key point. The key focus here is with the divestment, the debt reduction, and the refinancing.

The refinancing will be done in the first half of FY27. Kesh, back to you.

Thanks, Marc. Marc mentioned debt reduction quite a lot as well as me.

It's really important to emphasize the benefits of that, because what it's done is created a platform for the divisions to excel in FY27 and focus on the actual organic growth without worrying too much about how we manage our capital debt moving forward. It is something that we're going to stress on throughout this presentation.

More importantly, it's given management the flexibility to really zero in on the underlying performance of our core business and really work out what is working and what's not, and how to create intricate strategies to improve the profitability of these businesses. We do believe we've created a much stronger foundation for organic growth and the next phase is all about execution.

Business reset is good, but now we really want to focus on reliable earnings, reliable revenue, and cash generation moving forward. I'll pass it back to Marc to close off the forecast statement.

Thank you, Kesh. Look, we wanted to reiterate our guidance through this process.

We had previously, when we sold the ISP business, we'd announced that we expected FY27 EBITDA to be in the range of $14 to $16 million pre-AASB, that means before we adjust for the rent. $14 to $16 million will produce strong free operating cash flow for the business.

That's after paying interest and any debt that would be required of a new finance facility to be repaid. We would still have quite significant free operating cash flow.

That then ties in, what does the board think and consider for its capital management options? The key capital management option in the first instance is to continue to reduce debt.

That has to be the key focus for the business: reduce debt. In the medium term, they can think about dividends, share buybacks, or any other form of capital management, but the initial reaction is pay down debt as quickly as we can.

That we think will produce the best return for shareholders over the medium to long term. We're continuing to see growth in both our Packaging and Resource Recovery divisions.

Our businesses have started off very well, as we said. Quarter four was good, and the first six weeks of trading have been excellent across the entire group.

All the businesses have started off very well. That's a very positive sign.

If we can reach our $14 to $16 million EBITDA guidance, then we would be in a net debt position of absolutely less than 2x at $16 million based on the refinance and paying down debt during the course of the year. That's a 2x EBITDA without taking into effect the cash and additional cash that will be on hand.

That's why we talk about 1 to 2x EBITDA through this piece. That's really the key points I wanted to focus on.

I've touched on the CapEx already, I've spoken about capital management, we certainly have been through the metrics of the convertible notes, and as I say, reducing the debt post-year-end has been the big talking point that's not necessarily in the annual report, although it is in the subsequent events note. Daniel, I don't have anything else to add.

We want to take a couple of questions, please.

Thanks, Marc. We've got a number of questions that have been asked.

The first question is on the debt and the capital structure and the refinancing. Debt position post the convertible note settlement and then the interest cost savings from that debt restructure.

Yes, I touched on it in the presentation, I'll just go backwards to the potential cost savings. That was the 3.5% to 4% in terms of the interest, which was calculated out to approximately a million dollars, maybe $1.1 million, depends how you do the calculation, in terms of interest savings during the course of the year.

The net borrowings, as we indicated, have decreased by a further $19.8 million post-year-end, which is really the convertible note component that's converted into shares, and obviously the reduction, that gives us an $18 million net debt position at the end of the period, which is made up of essentially $19 million worth of core PGIM bank debt, that's in U.S. There is a small component of the convertible notes that still has to be repaid.

Some of it will be paid at settlement of the refinance, and then a five-year interest-free loan to the tune of $1.75 million, although the first payment's only paid 12 months post-settlement. Then obviously there's a cash component, and our cash balance has remained steady at $16 million.

I'll also remind everyone that we paid back the required payment of debt reduction on the 1st of July. We paid $750,000 U.S.

dollars on the 1st of July of our core debt, and our cash balance has remained constant in spite of paying down the interest and the debt on 1 July rather than 30 June, which shows the free cash that the business has continued to generate in the first six weeks of this trading period. You're on mute, Daniel.

For the debt reduction, how much further can net debt fall on delivery of the FY27 plan?

We haven't gone into the market to make an exact number as to what the FY27 number looks like, assuming that we will pay down a couple of million dollars of core debt as per the requirements, depending on what the refinance looks like. Let's make an assumption: we pay down $2 million of core debt in the first year, there'll still be a good few million dollars worth of excess cash.

That will reduce our net debt position even further. As I say, $2 million plus the additional cash generated from earnings from EBITDA.

Anywhere from $2 to $5 million.

A question here on the ISP Tech divestment: what was the exit rationale and the benefit to the group in doing that transaction?

Yes, the exit rationale was in relation to we had a number of large players coming into the market, what we call the term "market encroachment." There's a lot more competition in that space with bigger players with bigger balance sheets, and the market was changing upon us.

Whilst the business performed exceptionally well in the first few years that we owned it, we saw a change in the market, we saw bigger players coming into the space with bigger balance sheets who were prepared to take bigger bets. We thought it was most appropriate that we're not able to compete at the same level with those folks and it was best to exit the business as best we could.

Can I just add to that as well? The bigger businesses that Marc is referencing, these businesses have plenty of full cash reserves so they can essentially buy products at a higher price and also wait for a very long time to get a return, sometimes beyond 90 days or 120 120 days.

They're doing this quite aggressively in the market to capture it, and the market is heavily moving into that as there's more assets being developed, particularly because of the AI crowd growth. That's the market dynamic that we've seen really impact ISP.

Earnings and outlook: Resource Recovery in the FY26 result, the FY26 segment loss in Resource Recovery, and what sits inside that?

Yes, so as I touched on in the presentation, Daniel, that is the head office costs that sit inside Resource Recovery. That's all the corporate costs, all the listing costs, some of the executives that sit in that space, as well as the restructuring costs associated with the plastic recycling restructure that occurred during this financial year.

Those two items. Going forward, we'd probably always see the Resource Recovery segment profit understated slightly because that's where the head office costs sit.

As I said, the packaging side of the business gets a little bit of a free kick because it gets some of the services and the expertise, knowledge, and know-how from executives that are involved in running those businesses, but their salary and wages and other components are covered by head office, which sits in Resource Recovery. It could be anything from licensing fees of IT equipment to listing fees, audit fees, all sorts of things which if the packaging business was a standalone business, it would have to incur some of those costs.

We don't reallocate all the costs as an exact science because as far as we're concerned, it's one bucket at the end, it is Close the Loop as a group, as one entity.

Yeah. Normalized earnings: the underlying earnings profile post-restructuring and portfolio reset, what does that look like?

As we've indicated, the portfolio reset really is the guidance that we've set for next year. That's the $14 to $16 million.

That's the $14 to $16 million EBITDA guidance based on the growth, based on how the business is performing today, based on all the various businesses making a positive contribution. Businesses that weren't profitable, that weren't making good contribution, have been restructured or disposed of in FY26.

FY27

EBITDA bridge: what takes EBITDA from $12.4 million in FY26 to the $14 to $16 million guidance in FY27? Yes,

so that's the growth that we've seen starting to come through. We've made announcements previously about businesses winning tier-one customers, particularly in the packaging space.

It's the growth that we've seen and the work that's been done in FY26 with the results are starting to be shown in FY27. It's the natural performance of the business as it grows and moves and matures over a period of time.

That's why we've given that conservative guidance.

In terms of current trading, whether the improvement since March is continuing and July trading?

Yes, I'll talk to that one, Kesh. Absolutely.

The first six weeks, I indicated this in the presentation, obviously indicated that by way of the analysis where our cash balance, in spite of making a large repayment, a large quarterly repayment to our financiers, our cash balance remains in line with where it was at 30 June. That's a clear indication that the business is producing free operating cash flow and performing well in the six-week period for this new financial year.

We've got a very large order book in some of the businesses. We're seeing a lot of forward momentum, positive momentum across the group.

Don't know if you want to add anything to that, Kesh?

No, you covered that well.

We have a question on operations: packaging and recycling performance and the FY27 plans, drivers of the stronger packaging result, and the FY27 plans for recycling and packaging.

I can take this one, Marc. As Marc touched on actually, speaking to the tier-one customers, we have had relationships in there over 8 years, and the tier-one guys, and now those relationships coming to fruition, we're able to see a large increase from that customer base, an increase in the share of wallet, as well as expansion going into New Zealand.

We believe that's going to be a strong revenue base in future. For recycling divisions, it's really for these divisions, it's managing the costs.

You've got a huge labor force, there's machinery costs, we really want to be diligent and frugal on how we spend on labor, machinery, maintenance, and so forth. That's where we're going to see the real difference, as well as diversifying more and more into products like cosmetics, which have a higher profit margin compared to the printer consumable programs.

Diversification will be a key focus as well to ensure we get better margins.

OpEx recycling site consolidation: what are the savings from the recycling

site consolidation? I can talk to that one, Kesh.

The savings there were we originally were running three sites—this is Close the Loop plastics recycling. We were running three sites in the U.S.

and essentially what we did was we consolidated the sites into one. Some would say it was like eating soup with a fork in some of those sites.

We had plenty of volume, plenty of revenue going through, but actually the more we put through an old equipment was inefficient and we were losing money. The best idea was we made an investment in further equipment in the one site that is very profitable.

It's proven to be the correct decision because of the performance of that site over the last two or three months since that new equipment came online. We took the best of the contracts and moved them to the one facility.

We got rid of underperforming sites, underperforming old equipment that was either sold or scrapped, or some of the programs where it was volume but with no profit, we just decided not to continue on with some of those contracts and engagements. We've cherry-picked the best of the three sites, consolidated it all to our one site in Fostoria with a new piece of equipment that required some additional volume, which is why we could move some of those contracts to that new site because we more than doubled capacity of the previous facility with the new equipment coming online.

That's proven to be really successful, with that machine now running two shifts, there's an option to even go to a third shift. Once you're running a second shift in a manufacturing site, it starts to become quite profitable quite quickly.

That's the big change, rather than single shifts in three sites, let's run two shifts in one site.

Artificial intelligence— Do you want to add to that,

Kesh? I'll just echo what Mark's saying.

We've already seen some positive results on that site since the last reporting period on the changes Mark's saying. Throughput is really important for that business and the place of what we're seeing recently have a very positive outcome on plastics, which was the underlier in Resource Recovery so it's great to see that business coming on.

Artificial intelligence: the efficiency benefit across the business?

I can take this one. It's going to be a key focus moving forward for us, particularly because we see a huge improvement in how we process cartridges moving forward.

There's a lot of processing costs associated with labor as well as capital to keep those lines running. With AI and how AI is coming to the market where it's a lot more affordable when it comes to software development, we can really use our in-house expertise to see some operational gains there.

It's quite a large project. We don't see this happening in FY27 immediately, but most possibly in FY28.

It's a project where we've got in-house knowledge, all our software programs that we've created within the business is in-house, and we've got really good expertise where we can leverage that so we're not paying for extensive software development costs. In the Resource Recovery side, it will directly impact gross profit on the success of these projects, and in the packaging side, it will give the opportunity for our sales guys and customer service to focus more on our packaging customers or free up their time so they can build a stronger pipeline and more of the energy spent on sales as opposed to administrative tasks.

That's

all the time that we have for questions. I'll hand it back to Marc and Kesh for any closing comments.

Thanks, Daniel. I just want to thank the shareholders and those that are on the call for their continued support.

FY26 has been a year of stabilization, of restructuring the business, and FY27, based on our guidance and our outlook, looks a lot more positive. We've restabilized the business, and it's exciting times ahead, and we thank everybody for their continued support.

Kesh, I don't know if you want to add anything?

No, likewise. Thank you very much to all the shareholders.

As we've stressed in this presentation, that reset is not the conclusion of the business, it is just a foundation and it has really geared us for FY27. We're excited to report to you guys at the end of FY27.

Thank you.

Daniel, I just want to make one other point. If anybody has questions that we haven't had time to answer, we're happy to take them offline if they'd like to contact either yourself, Daniel, or I, and we can endeavor to answer the questions, provided that the information is in the public domain.

Very good. I'd like to thank Marc and Kesh for the presentation, and everyone who attended.

Thanks again.

Thanks.