Thank you, Chuck. Good morning, everyone, and thank you for joining Peter Warren Automotive Holdings for our FY26 full year results presentation.

I am Andrew Doyle, Chief Executive Officer, and I'm joined by our Chief Financial Officer, Anna Bail. Today is about more than reporting a set of numbers.

It's about explaining how Peter Warren has responded to a changing automotive market, the decisions we have made to strengthen the business, and why we believe the company enters FY27 with a stronger portfolio, an improved position to support future earnings quality, and clear operating priorities. FY26 tested the sector.

New vehicle margins remained under pressure, particularly in H2, as customers became more value-conscious, cost pressures persisted, and new entrants continued to change the competitive landscape. We've responded with discipline, improving business mix, repositioning the brand portfolio, investing in capability where it supports our growth, and maintaining balance sheet flexibility.

The key message for investors is simple: the market is changing, and that creates pressure, but it also creates opportunity. Peter Warren has the scale, relationships, property base, operating capability, and leverage to participate selectively and convert that opportunity into more resilient earnings over time.

Turning to the agenda, I will start with the executive summary and the key themes from FY26. I will then move through the results overview, the market dynamics that are reshaping the industry, and how we are executing the Peter Warren strategy in that environment to our benefit.

Anna will then take you through the FY26 financial summary including the profit and loss, gross profit, the operating cost bridge, cash flow, and dividends. I will return to close out with the outlook for FY27 and our key earnings recovery drivers before we open for questions.

The appendices contain the supporting reconciliations, definitions, and additional financial detail. The presentation and financial statements have been lodged with the ASX and are also available on our website.

Let me begin with the executive summary. This section steps back from the individual numbers and focuses on what FY26 tells us strategically.

The automotive market is going through a significant reset. Customers are making different choices, brands are competing more intensely, and dealer groups are being tested on discipline, agility, and execution.

FY26 made those realities very clear. For Peter Warren, the response has been deliberate.

We focused on the levers within our control: improving our position to support future quality of earnings, strengthening the brand portfolio towards where customer demand is moving, managing inventory and interest costs, investing in future capability, and protecting the balance sheet. While FY26 was challenging, it was also a year in which we strengthened the foundations of the business and positioned Peter Warren to benefit as the market continues to evolve.

Slide 4 captures the center of today's presentation. FY26 tested the business through new vehicle margin pressure, particularly across H2, changing customer demand, and inflationary cost pressure and market disruption.

Our response was not reactive, but was strategic, disciplined, and focused on positioning the company for future growth. First, new vehicle margins were under pressure, particularly in the second half.

We responded through inventory management, an improved mix of business towards higher-margin segments, and brand execution focused on demand-led opportunities and a keen review of underperforming businesses. That is how we protect margin quality in a tougher market.

Second, consumers are shifting towards value, technology, and new energy vehicles. We have significantly repositioned the brand portfolio and expanded exposure to growth brands and customer segments, particularly where demand is moving fastest.

Third, the macroeconomic inflationary environment presented challenges across our industry. We invested in key capability leadership roles, business modernization, and strategic dealership expansion, and will benefit in FY27 from cost optimization opportunities as those teams and programs become fully operational.

Finally, market disruption is creating consolidation opportunities. We've preserved low net debt and balance sheet flexibility, and continue opportunistic acquisition review and portfolio optimization.

The outcome is important: Peter Warren enters FY27 with a stronger portfolio, higher-quality earnings, and a balance sheet capacity to act on market opportunities, all of which positions ourselves for improved future earnings quality. I will now move on to the FY26 results overview, and the next two slides summarize the key financial and operating outcomes for the year.

The headline is that revenue and overall gross margin held firm in a difficult market, while profit before tax was impacted by new vehicle GPU pressure and operating cost inflation. At the same time, the operating indicators that matter for future earnings improved meaningfully: record used vehicle volumes, record service and parts revenue, improved inventory aging, a stronger order bank, continued portfolio repositioning, and a disciplined balance sheet.

That combination is central to the FY27 entry point. The reported profit result reflects a tougher market, but the underlying operating base has been strengthened.

Turning to slide 6, revenue was $2.489 billion, broadly stable on FY26, up $6.7 million. In the context of a weaker and more competitive new vehicle market, that stability matters.

It reflects the breadth of our revenue base and the contribution from used cars, service, parts, finance, and insurance. Gross profit margin improved to 16.3%, up 0.2 percentage points.

That is a key indicator of improved business mix and earnings quality. New vehicle margins were under pressure, but higher-margin and more resilient revenue streams that more than offset that pressure.

Underlying profit before tax was at the higher end of our guidance at $14.5 million, yet down on prior year. That decline mainly reflects new vehicle GPU pressure in the second half and operating cost inflation.

The board has declared a final dividend of 0.6 cents per share, fully franked, bringing the total dividend for the year to 3.6 cents per share, which is at the higher end of our typical dividend payout ratio of 60% to 70% of underlying net profit after tax. Importantly, as you can see on the second line, despite new brands and higher volumes associated with those new brands, interest costs funding our average stock level of $371 million was $43.8 million, $5.3 million lower than the prior year.

The balance sheet remains a major strength. Leverage is low at 0.83 times net debt to EBITDA on a pre-AASB 16 basis, and our owned property base is strong at $243.7 million.

This is an LTV of just 19.5% and an NTA of $1.48. The message is discipline.

We protected the balance sheet and maintained flexibility to pursue growth while continuing to reposition the portfolio in this transformational market. Slide 7 shows where the quality in the FY26 outcome becomes clearer.

New units were 31,390, up 148 units in a competitive market, which delivered for our OEM partners, delivered our KPI bonuses, and continued to build the Peter Warren car park of customers into our ecosystem to allow further maximization of finance and insurance, service, and parts opportunities. Most importantly, the order bank increased to 6,349 units, up 1,390 units, or almost 30% year-on-year, giving us a solid revenue base for our FY27.

Used vehicle performance was a standout, with a record result of 10,578 units, up 876 units, or almost 10% year-on-year. Service and parts revenue also reached a record $442 million, up $19.9 million, or a solid 5% growth.

These are important earnings trends because they are higher-margin and more resilient than new vehicle gross profit alone. Inventory aged over 120 days improved to 26.1%, down 3.4 percentage points, demonstrating solid stock management.

The mixed business ratio improved also to 60.4%, and this measure is a balance of our business and it's how reliant we are on the new car gross. A healthy business has a strong back end, meaning we are utilizing our customer base for recurring revenues of service and parts.

It builds a more resilient business, less reliant on new car gross fluctuations. Increasing this to 60.4% reflects an increase in gross profit contribution from those higher-margin parts, service, finance, insurance, and other back-end margins.

We also added nine new dealerships during the year, all within an overall reduced leasehold footprint, but more on that later. Our people productivity was stable at $1.1 million revenue $1.1 million revenue per employee, which is pleasing in a lower gross period.

This will be continue to be a focus for management across FY27. I will now turn to the market dynamics and how Peter Warren's strategy positions us to deliver in this context.

This section explains both the pressure that we have seen and the opportunity that we are positioning for. The Australian automotive market is changing rapidly.

Customers are more value-conscious, brand loyalty is shifting, technology expectations are rising, and new entrants are changing the economics of competition. Our Peter Warren strategy is built around responding to those changes earlier and more decisively than the market.

The objective is not simply to withstand disruption; it is to use it to strengthen our portfolio, improve our mix, and position the business for more resilient growth. In this context, consistency across delivery of the Peter Warren strategy is critical.

Slide 9 shows how the macroeconomic pressure is accelerating a structural shift in vehicle demand. Australian consumers are facing higher interest rates and inflation, fuel price pressure, global instability, and stubborn cost-of-living pressures.

These forces have reduced confidence and made customers more savvy and value-conscious. The customer response is clear: a greater focus on affordability, increased value-seeking behavior, high demand for fuel efficiency, and an expectation of quality and technology at more competitive price points for certain models.

At the same time, customers are demonstrating lower loyalty and greater acceptance of new brands. The market outcome is clear: Australia now has 67 brands competing, up from 59 in 2025, and industry forecasts suggest at least 75 brands by 2031.

Indeed, there is no more competitive market in this measure across the globe than Australia. Chinese brands now represent a materially large share of the market and are intensifying competition.

Our view is that this is not simply a short-term fluctuation; it is a structural change in demand. It favors value-orientated, technology-led, and new energy vehicle brands, and it rewards dealer groups that can move quickly, represent the right OEM partners, and execute consistently at the local level.

In times of structural change, agility is important, but so, too, is a disciplined execution of strategy. Slide 14 sets out the Peter Warren strategy.

Our vision is to be the most valued automotive group, exceeding the expectations of our customers, employees, brand partners, and investors. The strategy is built around four key pillars: Acquisition is about opportunistic acquisitions and portfolio optimization, delivering scale and EPS-accretive growth.

Customer is about fostering a customer-centric culture that delivers increased retention, service revenue, and lifetime customer value. Organic is about best-in-class performance, delivering improved mix and margin resilience through used vehicles, service, and parts.

Finally, Innovation is about driving productivity and efficiency, which delivers higher conversion and scalable growth through more and more sophisticated use of our clean data, automation benefits, and AI scalability. Underpinning all of this are, of course, the Peter Warren values of growth, integrity, focus, and teamwork.

This is not an abstract framework; it's the operating system that we measure monthly to ensure we are using strategic direction to build a more resilient, a higher-quality, and a more valuable business going forward. Turning to acquisitions, the Australian market remains primed for consolidation.

The Wakeling automotive acquisition remains pending ACCC clearance, and more broadly, we are continuing to assess opportunities through a disciplined capital allocation lens. In a fragmented market with disruption increasing, stronger groups have the opportunity to consolidate.

Peter Warren has the balance sheet, property base, the OEM relationships, and operating capability to participate selectively and opportunistically. We remain selective and opportunistic in reviewing potential targets.

Chinese brands have increased materially the share of the Australian market. Various motoring industry experts view Chinese brands growing to around 50% of the Australian marketplace before too long.

For the full year financial year of 2026, as the chart shows, Chinese brands control 22.5% of the market. In the first six months of this calendar year, they control 27%.

In the last three months to July, they've controlled 30%. It is moving fast.

The speed of acceptance by Australian consumers is impressive. Peter Warren's number of Chinese brand dealerships has grown from 0 in June 2023 to 17 in June 2026, with the portfolio expected to grow further across FY27 to represent more than 30% of our total brand portfolio.

Importantly, overall, we are adding nine dealerships within the existing footprint. In fact, we actually reduced our leaseholds, which demonstrates the ability to expand the portfolio while sweating the existing property base and maintaining discipline on our fixed commitments.

Slide 12 shows the breadth of our Peter Warren Chinese brand strategy. Peter Warren is partnering with a diversified range of major Chinese automotive groups, including Geely Holding Group, SAIC Motor Group, Chery Group, GWM Group, GAC Group, and other partners.

Since January 2025, we have added, on average, one new Chinese brand dealership to the portfolio almost every six weeks. We also have approximately 10 additional Chinese brand dealerships approved and in the pipeline.

This is not growth for growth's sake; this is demand-led portfolio repositioning ready for the near term. Customers are increasingly accepting value, technology, and new energy brands, and we are aligning the portfolio with that movement.

Crucially, the strategy is being executed within an overall reduced leased property portfolio. That combination of growth exposure and footprint discipline is central to the Peter Warren strategy.

Slide 13 highlights the Geely brand, which is one of the clearest examples of why the portfolio shift matters. Geely is home to the EX2, identified on the slide as the best-selling car model across all brands in the segments in China in 2025, with more than 460,000 units sold of that one model.

It is also the best-selling small EV on our planet. Geely Group has sold more than 3 million vehicles in China in 2025 and have clear ambitions to grow further.

The brand is still early in its Australian journey. It is operating with only two models today, and the recent launch of the EX2 precedes a significant model pipeline, with at least eight new models expected over the next 12 months.

For Peter Warren, the important point is our exposure: we are Geely's largest partner nationally, with the highest sales and largest footprint of any dealer group in Australia. That creates both near-term volume opportunity and medium-term strategic upside for Peter Warren as consumer acceptance of Chinese brands increases and the market rewards value, technology, and new energy vehicle capability across multiple new model launches.

Slide 14 turns to Zeekr, Geely's premium luxury mobility brand. Zeekr brings together technology, sleek design, and innovation, and gives Peter Warren exposure to the premium end of the growth brand opportunity.

Zeekr is the fastest-growing premium brand in Australia. The brand has already overtaken multiple established premium brands year-to-date, despite operating in Australia for less than two years.

Importantly, more than 90% of Zeekr's year-to-date volume has come from one model, the 7X. With the 007 GT, 8X, and 9X expected in early 2027, the brand remains early in its product life cycles.

For Peter Warren, the Zeekr partnership strengthens the portfolio, expands our premium market exposure, and provides a platform for future growth and value creation. The Peter Warren Zeekr Gold Coast grand opening is a strong example of our ability to bring a new growth brand to market quickly and professionally within our existing property footprint, and we're excited to further expand our partnership with Zeekr in the near future.

Slide 15 focuses on the customer pillar of the Peter Warren strategy. The objective is simple: to turn customer insight into care, and care into loyalty, retention, recurring revenue, and lifetime value.

We measure through our internal customer review platform, CX360, but also through OEM scorecards and meaningful service level agreements with our customer care team. These tools provide clear data visibility on customer feedback and customer satisfaction performance, allowing our teams to turn insight into clear actions and consistent standards across the network.

We improve ourselves through training, such as our Peter Warren apprentice program and our DRIVE framework. We recognize great performance through OEM awards and Peter Warren awards and Star Gifts Garage.

Finally, we scale capability through national development, education, and leadership summits. The proof points on the right hand of the slide are important: more than 220 young apprentices are developed in our company, we've achieved a 7 percentage point improvement in OEM customer satisfaction index measure, and an 8 percentage point increase in service retention.

The financial relevancy is clear: in a market where customers have more choice than ever, service consistency, responsiveness, and trust become real differentiators. Customer retention is not just a service metric; it is a recurring revenue and lifetime value driver.

Slide 16 shows the organic performance that supports the margin resilience I talked of earlier. New vehicle units were broadly stable at 31,390 units, up 150-odd units year-on-year.

Used vehicle units reached a record 10,578 units, or up almost 10%. Service and parts revenue also reached a record $442 million, up $20 million, or 5%.

We've built and strengthened our used vehicle, service, and parts, which are important contributors to margin stability, recurring revenue, and customer lifetime value. The internal and OEM brand combined balanced scorecards help drive transparency and consistent execution across our network, while our property strategy remains disciplined, with a focus on sweating our owned property and reducing our lease exposure.

The organic message is therefore one of disciplined and balanced operating performance: stable new vehicle volume, record used volume, record service and parts revenue, improved retention, and a more resilient earnings mix that helps stabilize that overall gross margin, which, as you can see, was up 0.2 percentage points in the year to 16.3%. Finally, in my section, turning to slide 17, and this is actually one of the most important slides in our results update because it really demonstrates that our innovation pillar is already delivering measurable outcomes.

We are leveraging enterprise-wide data and insights, process automation, digital journeys, and disciplined investment in AI-powered engagement to enhance customer experience, to drive productivity, and generate scalable revenue growth. This is not just theoretical.

In FY26, our pilot inside sites that we utilized, 44% of online leads, appointment capture occurred after hours through AI when customers were ready. Maybe they were parents on the couch at home at night, yet dealerships were closed and appointments otherwise might have been lost.

We generated approximately $44 million of revenue from converted service opportunities, up 56% year-on-year, and we also achieved a 2.9 times improvement in service customer win-back conversion rates. The power of this capability is then the breadth of scope, and then scaling and scalability across our business.

Once the data foundation and process automation are in place, the incremental benefit can be deployed across more dealerships with greater consistency. This is how innovation supports operating leverage, higher conversion, stronger customer engagement, better retention, improved productivity, and ultimately, earnings growth.

I'll now hand over to Anna, who will take you through our FY26 financial summary in more detail, and it will cover the profit and loss, gross profit, and operating cost bridge, cash flow, and dividends. These slides explain the movements behind the headline results and the actions we're taking as we move into FY27.

Anna.

Thank you, Andrew, and good morning, everyone. Turning to the FY26 profit and loss.

Revenue increased by 0.3% to $2.489 billion. This reflected a lower new vehicle average selling price influenced by cost-of-living pressures and the emergence of a wider range of high-quality, lower-priced Chinese brands.

This was more than offset by higher year-on-year volumes and record used, service, and parts revenues as the business executed several strategic initiatives focused on driving performance across the back end of the business. Gross profit increased by 1.6% to $406 million, with gross margin improving to 16.3%, up from 16.1% in FY25.

I will unpack the gross profit movement in more detail on the next slide. Underlying operating expenses increased by $18.7 million, or 6.5%, to $308.4 million.

This reflected an uplift in costs associated with business transition through adding new brands and dealerships, increased organic performance, as well as inflationary pressures. Interest costs reduced by $5.3 million, or 10.8%, reflecting lower average inventory and an improved aging profile, despite several cash rate increases during the year and the additional stockholding due to new brands and dealerships.

Underlying PBT was $14.5 million, down $7.8 million, or 35%, on FY25. Statutory PBT was $11.5 million after one-off acquisition and restructure costs of $3 million.

Slide 20 provides more detail on gross profit. Gross profit margin increased to 16.3%, up 0.2 percentage points from 16.1% in FY25.

The increase reflects two key drivers: lower new vehicle margins in the second half reduced margin by 0.3 percentage points, while favorable used, service, and parts mix added 0.5 percentage points. The decline in new car margins reflects external market challenges and legacy brands discounting against new entrants.

This is a market pressure that Andrew referred to earlier, and it remains a feature of the broader environment. Importantly, margins remain favorable in other service lines that are growing in contribution.

Service optimization, productivity efficiency, parts efficiency, and the benefits of scale all supported the margin outcome, and these will continue to be a focus for management across FY27. This highlights that back-end performance is helping support the business through new vehicle margin pressure.

Management remains focused on rationalizing underperforming dealerships, broadening service and parts optimization, and maximizing finance and insurance and car care opportunities into FY27. Turning to the operating cost bridge.

FY26 underlying operating costs increased by $18.7 million, taking our operating cost as a percentage of revenue to 12.4%, up from 11.7% in FY25. The bridge separates the increase into two distinct categories.

The first is intentional spend focused on transitioning the business to support future growth, which contributed $12.3 million. This includes cost uplift associated with new brands and dealerships, such as headcount, advertising, and other variable operating expenses; increased activity to drive organic performance in new, used, service, and parts; targeted key appointments to uplift our capabilities; and remuneration increases to drive retention and performance, as well as statutory award and superannuation guarantee increases.

While these have been incurred in FY26 to drive growth, management is focused on improving the operating leverage of these costs across FY27. The second category is associated with the inflationary macroeconomic environment, which contributed $6.4 million.

Management is responding through cost optimization initiatives, including the use of technology to drive productivity, realignment of support functions, leveraging our scale with suppliers, further optimization of our property footprint and leased portfolio, and the rationalization of underperforming dealerships in order to neutralize this impact across FY27. The cost message is therefore balanced: we've invested to support new brands, drive organic growth, and enhance capability, all of which position Peter Warren for future growth, but also identifying clear areas of focus where management action will deliver benefits through FY27.

Slide 22 covers cash flow and dividends. The business remains cash-generative, with operating cash flow after floor plan interest of $57.3 million.

This represented a 71.1% cash conversion, reflecting solid underlying cash generation despite ongoing investment in working capital to support business operations and growth initiatives. Net cash generated was $17.7 million after lease payments, interest on loans, and tax.

Cash was used across three main areas: investment in dealerships capital expenditure, returns to shareholders through regular dividends, and repayment of loans. Net debt ended at $47.4 million, impacted by a lower cash balance at 30 June 2026 versus 30 June 2025.

Net debt to EBITDA after floor plan interest was 0.7 times. This reinforces the balance sheet discipline that Andrew referred to earlier.

The board has declared a final dividend of 0.6 cents per share, fully franked, with total dividends for the year of 3.6 cents per share, at the upper end of our typical dividend payout ratio of 60% to 70% of underlying net profit after tax. Our balance sheet remains disciplined and flexible.

Low net debt and a strong tangible property base provide optionality as the business considers growth, capital allocation, and maximizing shareholder returns. I'll now hand back to Andrew.

Thank you, Anna. I will now close with the outlook for Peter Warren.

This is where the FY26 narrative comes together. The year was challenging, but it was also a year of strategic repositioning.

We strengthened our mix, expanded exposure to growth brands, invested in future operating capability, and preserved balance sheet flexibility. As FY27 begins, our focus is on converting this strategic repositioning into improved earnings performance.

The key drivers are higher-quality earnings, portfolio-led growth, operating optimization, and disciplined capital deployment. Finally, slide 24 summarizes our FY27 focus.

FY26 delivered important foundations: record results in service, parts, and used vehicles, a firm review and rebalance of the brand portfolio towards customer demand growth brands, and a disciplined transition phase focusing on maximizing scale, improving property utilization, and optimizing costs. FY27 is about positioning for earnings recovery.

The first driver is higher-quality earnings: moving mix further towards the higher-margin service, parts, and used vehicle performance, maintaining margin resilience through improved mix, and continuing inventory and cost optimization. The second driver is brand portfolio-led growth.

We will continue selective expansion with high-growth brand partners, supported by increased penetration in growth segments and a portfolio increasingly aligned to customer demand. The third driver is disciplined capital deployment.

We have maintained balance sheet flexibility and capacity to pursue EPS-accretive opportunities as the market continues to consolidate. Our firm view is that Peter Warren is building a stronger business today to support higher-quality earnings growth tomorrow.

Thank you for your time and your continued interest in Peter Warren Automotive Holdings. In summary, FY26 was a challenging year, but it was also a year in which Peter Warren strengthened its strategic position.

We improved the quality of our earnings, accelerated exposure to growth brands, delivered record outcomes, and invested in future capability, and maintained balance sheet flexibility. Our focus for FY27 is clear: to convert this strategic positioning into earnings recovery through high-quality earnings, portfolio-led growth, optimizing our operating base, and disciplined capital deployment.

Anna and I would now be very happy to take your questions. Thank you.

hi, Andrew and Anna. Thanks for your time.

First question, just wanted to talk to slide 21, because that was a larger increase in the OpEx base than I had expected. Can you sort of explain the difference?

Sorry, I don't quite understand this second category of the $6 million versus the $12 million between navigating inflationary macro environment. Is this sort of strategic decisions that you made?

Is that what's going on there?

Hi, Phil. Thanks for the question.

We've split that up to give a bit of an indication of how the OpEx will move into FY27. The $12.3 million there that reflects what we've invested in the business and used to sort of drive both the organic performance that we saw in FY26, but also set ourselves up with that transition of new brands and new dealerships into FY27.

We do expect some benefits from that category, although we'll get some efficiencies as those change and new dealerships get fully up and running for the full 12 months. The second bucket there is more focused on what we've called pure inflationary pressures.

That's where we've said there that management is really focused on neutralizing that effect into FY27 through the various cost optimization initiatives that we've put there.

I think we'd summarize it, Phil, by saying, yeah, we think there's some optimization of the 12.3 and significant optimization in 6.4. I

understand. The 6.4, did you not necessarily see much benefit in that in the FY26 results then?

Look, I think that that was really those cost pressures coming through in H2 in particular, after the sort of war in Iran and the inflationary impacts that that had through fuel prices and things like that. I think that's really where we're focusing on neutralizing that through FY27 and minimizing the impact going forward to the operating cost base.

Okay. My follow-on question then is: how do you intend to neutralize that impact in '27?

That's through some of those initiatives that we've put through there. We understand that inflation is stubborn at the moment and it's not going to go down immediately.

We're trying to be proactive around releasing that pressure through other areas of the business. Through those initiatives that we've listed there, driving productivity through IT, optimizing the support functions, and those other items.

I might touch on that a little bit further off-line. Just shifting to slide 17, Andrew, you mentioned the pilot in sites that you've set up over the year in terms of some automation and operations outside of hours, etc.

Can you talk to what proportion of your sites have had that enabled and what's the intentions to try and roll that out over FY27 perhaps to drive a little bit more revenue generation?

We've across the network sites overall rolled out over all group around about 20 sites. We're at proof of concept stage where we've selected a couple of those partners, automation partners or AI partners.

We're selecting still. We've wanted to pilot one or two to test which one works better.

We've made those decisions now which way we'll go for both sales AI and or service AI, and roll that out over the course of FY27. We expect to have that rolled out through the course of this year.

Great. Thanks, guys.

I'll jump back in the queue. Thanks.

Hi, guys. Thanks for this.

Couple of questions. Firstly, I presume the biggest potential driver of getting PBT margins back to where you want them to be is effectively reorienting the brand mix and getting the right mix of high-growth brands as you talk about in the presso.

How far down that journey would you say you are? You've obviously reoriented a lot in the last two years towards Chinese brands, for instance, but how far to get near that sort of completed phase where you're happy with what you've got?

Thanks, John. Look, it is a busy activity we've had over the last, well, 2 years, but especially the last 12 months.

The market is changing as I mentioned very very very progressively. We're seeing these brands that would have represented sort of 10% to 15% of the mix before now up into the mid-20s, as I showed in that chart before, and also the order intake is well over or getting over the 30% mark now.

Therefore, it's about maximizing the portfolio to fit that in and to go with the brands that we believe are right. I think it's important to state there, as I hope I said in my words, we haven't picked any brand.

We've picked what we think are solid, strong groups that will be actively pursuing. That's the backbone, and we'll progressively roll them across each of our sites.

Importantly, into existing property portfolio, we haven't added any leases at all. We've usually maximized the property we've got.

To answer your question more directly, we have at least, as I say, another 10 10 Chinese dealerships in the pipeline that will be delivered in the yeah, I would say in the course of FY27.

Okay. Thanks for that.

Just on that subject of adding leases, with a partner like Geely, and looking at what Eagers has achieved with BYD, is there an opportunity for you to go beyond your current footprint and really get aggressive with rolling out greenfield sites, potentially even in states where Peter Warren isn't represented?

I think that potential is always there, John. We're not linked just to the sites we're in.

If the business case makes sense, we are certainly willing to look at any opportunity for expansion.

Okay. Geely, I presume you would say would be potentially up there with BYD as a brand that could really grab large share in Australia?

Absolutely. It's the second-best selling car group in China.

It's probably right up there or it is right up there with the BYD Group, selling more than 3 million vehicles in China. It's a very strong group, and it has a big, broad portfolio.

As I showed in that chart, there's at least eight models coming in the next 12 months. I've seen those models, and they are extremely impressive.

I think it's got a great future, the Geely Group.

Yeah. Sorry, just last question from me, Andrew.

Reorienting towards say EV-heavy China brands who won't have much in the way of parts and service and used revenue, how are you ensuring you get sufficient GPU to compensate for the sort of lack of back-end revenue from these new brands?

Right. It's a good question.

There's quite a bit to that question. The first level is improving what we already have.

We have a huge car park already, and it's about penetrating that car park with the right customer care. As I mentioned, our service retention is up 8 percentage points, we're penetrating more into the existing car park, and we can do a lot better there.

There is a long tail of service opportunity in our existing car park. The second thing is with the future of let's say NEV vehicles, new energy vehicles, yes, there are potentially less moving parts and less opportunity in the traditional business, but there's also opportunity in the new business.

Battery electric technology means that we can be stand-alone and actually have a USP when it comes to our opportunity to have high-voltage technicians that I talked about through our apprentice program and actually capture more of that market going forward, which I think is an opportunity for us. The bigger opportunity in the short term, certainly, is penetration of our existing car park of service customers.

Okay. We won't see, or am I right in thinking that we think we won't

see gross... Gross profit.

...we won't see gross profit degradation from this reorientation? Oh,

sorry, John?

Margin.

Sorry, John. Gross profit?

Gross profit margin, we won't see that being degraded with the reorientation?

No, our focus has to be on improving the balance of our business as I mentioned earlier. I talked earlier on the slides about how we are moving to what I would define as a more better-balanced business, a better-absorbed business.

We have a mixed business ratio that's growing above 60% now. Whilst the new vehicle themselves might have an average lower price point, the margin percent model is similar, but the price point is lower, that's for sure.

Our mix of business is moving more and more to what we see is even more in our control, being used cars, parts and service, and finance and insurance. We can balance the business a lot stronger towards the back end as well, which is more in our control.

Okay. Thanks for that, guys.

Thank you.

Good morning, guys. Thanks for taking my question.

Can I just have another stab at the cost question? When you say neutralize and mitigate cost, particularly in that $6.4 mil bucket, when you use the word neutralize in FY27, are we effectively talking about 0% growth from that or more around decreasing as a percentage of sales?

More around decreasing as a percentage of sales, Chenny. As you'd see, we've gone from 11.7% OpEx percentage to revenue to 12.4%.

We won't stay at 12.4%. We will come back down towards that 11.7%, but yeah, that's going to be progressive across the...

Got it. Cool.

Then maybe just in terms of the order bank, just want to touch on that. I presume it's a little elevated given your new units actually sold were pretty flat year-on-year, but I guess on both an FY and second-half basis.

Just wondering how that supply picture is now, and does that 1,300, give or take, incremental get realized in the first half of FY27?

Thanks, Chenny. The new car deliveries were relatively flat.

The order intake was up more than 16%, and our order bank is up more than 26%. Quite a strong order bank.

20% of that at least 20% of that order bank is of the Chinese brands, which will be deliverable in the shorter term. 80% of that bank is of other brands which are more deliverable as it comes into the second half.

Progressively, I would say more of that is deliverable in the second half, but depending on which brand it is and the bank and demand behind that. We can certainly get more availability, quicker delivery if you like, from the Chinese brands.

It is a solid order bank to go into the year with, which will be progressively rolled out over the late part of this calendar year and into the early new year.

Got it. Can I actually just focus specifically on that incremental 1,300?

I guess there have been supply challenges over the course of this year, to me that incremental 1,300 looks like basically orders you guys were supposed to get in the second half of FY26 that were effectively deferred. Is that the right way to kind of think about that 1,300 increase, firstly?

Then secondly, just remind us when the commissions to staff actually get paid here. Is it on delivery or is it on order?

They would be orders that we took especially in the last quarter effectively of last year. Although as I said, the new car business was under pressure with new car margins, the order intake was relatively strong, as I said, with the 16% growth overall.

That is being delivered over the period I mentioned earlier. The second question I think was on commissions, which are deliverable or payable at the point of delivery.

Got it. Then maybe just a question just on gross margins.

I know that second half probably benefited a little bit from mix, you mentioned obviously back end as well. I guess, gross margins have been stable at around that 16.1%, 16.2% range, second half 16.5%.

Just maybe some thoughts on where steady state is now, and whether we can use that 16.5% to extrapolate going forward?

Sure. Thanks, Chenny.

Look, I think we have said for a while now that we expected that the GP percentage margins would start to stabilize, and I think that's what we're starting to see come through now, as Andrew said, as we focus on kind of balancing the pressure on the front end with the increased contribution on the back end. I think there was a little bit of an added benefit, I think, in H2 above what we probably would have expected.

I think it's definitely moving in the right direction.

What was that added benefit? Was that just mix?

Because you did call out, I guess, lower new car margins in the second half.

Correct. I meant more as a contribution.

Obviously the second half was tougher in terms of the new vehicles, and so that added back-end benefit was really extrapolated, if that makes sense. I think that's a little bit, yeah, yeah.

Got it. Thanks, guys.

I'll leave it there.

Thanks, Chenny.

morning, Andrew. Morning, Anna.

Thanks for taking my questions. First question I just wanted to ask was just on inventory.

Your inventory levels being stable, but just curious, are you comfortable that the mix is appropriate in terms of being aligned to customer demand? If not, are you getting any support from the OEMs to kind of get that mix right?

Good morning, Sarah. Look, we're never satisfied with our stock levels.

They can always be optimized, for sure. It's been lumpy deliveries over a period of time.

When it comes to supply and demand, I guess, or demand in particular for that stock, I think the OEMs are responding favorably to where there is slower-moving stock, be that through floor plan support or reduced supply and production and reduced requirements for order quotas, if you like. As I say, never satisfied that it's at the right level.

We want to optimize it a lot more, and we are doing that progressively. It takes time to work through some of those, especially that stock that is coming from a further distance that might have been ordered some months ago and is in transit.

It's a focus of the operating team here on every day effectively to make sure that we are working through, and I think our OEM partners are well aligned to making sure that we can optimize that stock as best we possibly can.

Great. By the end of this financial year in the second half, you should be at a much better level and that should assist new car margins?

I think you'd be fair to say that we can work through that stock and in the second half we'll start to see a benefit of cleaning up where it needs cleaning, but it does take time as I just explained, yes.

Great, thank you. Then just on I guess your brand portfolio, clearly you've added significant greenfields with Chinese brands, and when you look at the market over there, there's a huge number of brands in China, and so it's clearly very difficult to know who's going to succeed, and even the big guys have been losing market share recently.

When you consider new greenfield opportunities, can you just run us through the key things you consider when you're picking a partnership?

Sure. Look, I think it's important to look at a couple of things.

Obviously, the backing or the structure, if you like, of the group, the size of the group, the product portfolio of the group and how that fits the Australian marketplace, the attitude, if you like, and the support and partnership with us as operators, as dealers, and all of that gets taken into account. As I showed on slide 12, I believe we've selectively gone with the right groups that have scale, have strength, and have the product portfolio coming through.

The other thing we look at closely is the performance of these brands in other markets across the world that we think can be replicated in Australia. We know that a number of these brands are performing significantly well in other markets such as the UK or South Africa, where we can see an alignment to what will happen in Australia.

We forward plan in terms of where we see the opportunity based on some incredible success when it comes to some brands, especially in the UK market.

Great, thank you. Then last question from me is just on M&A.

Clearly there's the new ACCC process that seems to have made M&A a lot more difficult. Has this impacted vendor expectations around pricing?

Longer term, does the more onerous process impact your acquisitive growth strategy and should we anticipate, I guess, more of a pivot towards greenfields?

Look, let me go first. I think Anna probably can add to this as well, but look, I think it doesn't close our mind to opportunities across the country.

As I say, the market is quite fragmented, we still see the opportunity there and there's a lot of discussions that are happening. We're obviously in a process now with the ACCC, which we believe is moving in the right direction, and we understand the process very well through that experience.

I think going forward, we can manage that really really successfully. It is a new process that everyone's getting used to, I guess, is the best way to put it.

It doesn't in our mind change any fundamentals of pricing or multiples. Value is value that we would negotiate still accordingly.

Of course, yes, and that's purposely why under our sort of expansion pillar of our strategy, we do look both greenfields and acquisition opportunities. We see greenfields as a big opportunity, and I think the success we've had in FY26 and into this year is proven by what we've been able to pivot our portfolio to without an official sort of acquisition of an additional company.

I think I wouldn't add too much to that. I think obviously the multiple piece there is going to play out probably more so in the dynamics of what's going in the broader industry at the moment, I think, rather than anything to do with the ACCC.

I think that's just a learning experience and I think we'll obviously be much smarter for the process that we've been through and a little bit in them just gaining a greater understanding of the industry. I don't think it changes our approach, and I think the multiple question, as I said, will be more a factor of what's broadly playing out in the industry with the brands and dealerships.

Great. Thanks very much.

Thanks, Sarah.

Good morning, Andrew. Good morning, Anna.

Just got a quick question. I noticed in your outlook comment that a line missing compared to last year, and that comment was you expect earnings to grow in FY27 versus FY26.

Do you mind, yeah, giving us some guidance there?

Yes. Hey, sorry.

Thanks for the question. On that slide there, we talk about improved earnings quality, and we do expect earnings to grow financial year-on-financial year, for sure.

Thank you for the clarity there. The next question is just curious, how does the gross margin structure for new vehicles differ between a Chinese OEM and a legacy car brand?

Are volume rebates set at a higher target? Just, with some I suppose detail as to how the two camps differ.

Hey, Abraham. Anna.

Thanks for the question. Look, they don't actually change fundamentally, right?

The structure of the gross margin across the brands and the different players is broadly the same. I think we did point to sort of macroeconomic environment driving some of the consumer, I guess, price point decisions.

Obviously, that would fundamentally drive the ending gross profit number, but broadly speaking, the makeup of those margin structures are the same.

Yep, understood. Just in line with that thinking, the Chinese consumer has become a more value-conscious buyer.

Some stats suggest used car resale value is decreasing at quick rates. Are you seeing, I guess, looking at next 6 months, a more challenging used sale market and GPU per unit in the used segment?

Yeah. Hey, thanks.

It's an interesting dynamic, and there's some potential there that some of the price points and attractiveness of the new car market is impacting the used car market. It comes back to the fundamentals of used cars and buying right, and that's about our sourcing techniques, which we use a lot more technology around now to make sure we are sourcing the right product at the right price for the future market, which is quite a complex thing to do.

Whilst there might be some movements or irregularities in that balance, so long as we're buying right and stocking right, we believe we can continue to grow our used car business. We grew our used car business successfully last year, almost 10%.

We have plans to grow significantly again in this financial year '27. The key, as I mentioned, is buying right and making sure we don't have those stock reaches that can result as a movement in the market.

That's probably the best answer I can give to that one.

Just want to follow up to that is competition in sourcing vehicles, given the different platforms now available that'll disrupt the scale as well of the used car business, is there not competition on a big price in sourcing these used cars?

Competition, I don't think so. No, I think at the end of the day, the market is a free market, and it's about the right buying strategy that we have.

There's always competition. I wouldn't say there's necessarily more competition.

There's more tools to be smarter about the way we purchase and source, but there's competition and we're not concerned about it as long as we're buying at the right price.

Very helpful. In regards to, I guess, commentary around legacy brands discounting vehicles to move stock, I guess, what are you looking for just market-wide to suggest that this is turning around?

Gives us confidence that this margin profile improves?

If I got the question right, you're asking about the aggressiveness or the competition, if you like, of legacy brands. That's an interesting dynamic in the current market environment, but it's not unusual to what happens in the normal market.

Yes, the legacy brands and the new brands are all fighting for market share, and they're all using their tactical budgets above the line and below the line to fight for that market. Then the balance, I guess, is the result.

It does look back to Sarah question on stock. It's always about making sure we have the right profile of stock, and as I said, we work with our long-term OEM partners, be they legacy or new partners, to make sure that we can have the optimum levels going forward.

Understood. Thanks, Andrew.

Thanks, Anna.

Thanks, Abe.

Thank you, Chuck. Thank you, everyone, for your time today.

We really appreciate your continued interest in Peter Warren Holdings. For us, very exciting times for Peter Warren.

We're highly motivated as a team by the coming months and years ahead. Can I just say a big big thank you to all the amazing Peter Warren staff for their support, for their hard work, for our loyal customers, our wonderful OEM partners, and financiers that support us, and of course, our investors for your support.

Thank you all very much, and we look forward to seeing you all soon. Thank you.