Thanks everyone for logging on today. I'm in the room with Chris, our CFO.

I plan to run through a few of the business highlights, and then pass to Chris, who will talk through the numbers in more detail, and before we finish, we will have an opportunity for questions both verbally and online. I'm at slide 4.

Over the past 3 years, WOTSO has moved through a period of deliberate scale. As shown graphically through our location map, in December 2022, the network consisted of 19 locations across Australia.

Today, we have expanded to 35 locations across both Australia and New Zealand, representing an increase of 16 communities. This growth has not been about chasing footprints for its own sake, it reflects the continued execution of our strategy to build a scalable operating platform supported by a real estate backbone.

I'm now moving to slide 5. The first engine of the group is our operating platform, the WOTSO flexspace business.

Across the network, we categorize locations into startup, developing, and mature communities. What this slide demonstrates is the natural progression of the model.

New locations initially dilute short-term earnings as they ramp, while developing and mature locations continue to strengthen contribution margins. Importantly, as the platform scales, our corporate overhead is stabilizing, and our expectation is that overhead remains relatively flat as the network approaches 50 locations, allowing incremental growth to increasingly translate to bottom-line earnings.

During the half year, we reduced head office overhead while continuing to grow the network. Importantly, we believe the current platform is largely built to support approximately 50 locations without a material increase in overhead.

As new locations move through their ramp-up phase and reach maturity, incremental contribution is expected to increasingly flow through to the bottom line. The dispute relating to the North Strathfield location is the reason we have shown the adjustment, as the problems being experienced on site are materially impacting the performance of the location.

The dispute remains ongoing and is currently expected to be heard by the court around June-July this year, and we will continue to update the market. If you move to slide 6.

A major shift that we've previously discussed and we're seeing across the market is the willingness of landlords to contribute towards fit-outs. Fit-out costs have reduced to approximately $450 per square meter, around 50% lower than historic levels.

This is not simply a cost improvement, but it materially changes the economics of our operating business. On to slide 7.

Ancillary revenue continues to be growing and an increasingly important component of the WOTSO operating platform delivered across the network. Revenue from meeting rooms, parking, virtual office, and other services grew 31% to $2.8 million during the period.

Ancillary RevPAD grew 22% to $59 per desk, with ancillary income now representing 16.4% of total flexspace sales, up from 13.5% in December 24—sorry, from 13.5%. This growth highlights the continued diversification of revenue streams as communities mature and utilization deepens beyond core desk memberships.

Virtual office revenue reached $640,000 for the half, with January performance annualizing at just shy of $1.5 million, demonstrating strong early traction and reinforcing the scalability of low-capital, service-based revenue streams. To slide 8.

The second engine of the group is the property portfolio, which is closely aligned with the performance of the WOTSO operating platform. Unlike traditional real estate portfolios that rely on fixed rental income, a total of 38% of our property portfolio is occupied by WOTSO operating business, which operate under the 45 turnover-based leasing structures.

As a result, some of the income generated by the properties is designed to grow alongside the maturity and performance of the operating business. Currently, WOTSO-operated spaces in our portfolio contribute approximately 30% of the total property revenue.

Some properties presently reflect lower initial yields where WOTSO occupies a substantial portion of the building and those communities remain in their startup or early development phase, and/or there are pockets of larger tenants' traditional vacancy in the property. These yields are not indicative of long-term performance, but rather the timing of operational ramp-up and vacancy let-up.

As locations mature and revenue increases, property income is expected to expand accordingly. We feel this structure reinforces the group's dual-engine model, with the operating business driving utilization and growth, and the property portfolio positioned to capture that growth through increasing yield over time.

If we move to slide 9. We enter the second half with continued momentum across both engines of the business.

Recent network expansion combined with stabilizing corporate overheads positions the operating platform to deliver increasing efficiency as locations mature and contributions strengthen. Expansion remains disciplined, supported by growing landlord participation and a more capital-light delivery model.

New locations are expected to continue progressing through their ramp-up phases, while mature locations provide an expanding base of recurring revenue and ancillary income streams. Within the property portfolio, turnover-based leasing structures provide exposure to operational growth over time, while some assets currently reflect early-stage yields due to ramp-up or traditional vacancy, and proving utilization is expected to support progressive income growth.

Near-term focus remains on actively driving recent and newly opened locations and supporting communities through ramp-up, progressing advanced pipeline opportunities across Australia and New Zealand, maintaining cost discipline as the operating business scales, deploying capital from the Yandina sale into assets aligned with the continued expansion of WOTSO, and continuing to unlock capital-efficient growth opportunities alongside third-party landlords. We remain focused on building long-term earnings through scale, operational maturity, and the continued integration of the operating platform with the real estate portfolio.

I will now pass to Chris, who will run through the numbers.

Thank you, Jesse. Good morning, everyone.

I am pleased to present WOTSO's financial results for the fiscal 2026 half year. Turning to page 12, this half year, WOTSO has further continued the execution of its growth strategy, and the results reflect this.

Following on from what Jesse has already spoken about, and as I walk through the financial portion of this presentation, there are three key themes driving the results. First, our continued focus on growth and the positive impact that developing locations have on our underlying earnings.

Secondly, the deliberate and careful consideration to cost management, including the realization of operational efficiencies. Finally, increased focus on enhancing space utilization through ancillary revenue streams.

Starting with the broad strokes, total revenue is up 3% to $24.6 million off the back of a 7% increase in flexspace sales. Cost of sales, which includes rent expense, has increased 6% to $15.6 million.

Overhead and administrative costs have decreased 7% to $3.9 million, and underlying EBITDA has increased 6% to $5.4 million. The growth in revenue is predominantly driven through our nine new startup locations, which increased desk inventory above 8,000 desks and added over $1 million of sales.

Group RevPAD, which includes the revenue and desk figures of these startup locations, has remained flat at $363 a desk, a promising sign as an influx of desk inventory without a commensurate level of sales would impact RevPAD negatively until revenue catches up. Carving aside startup locations, same-location RevPAD has increased 3% to $375 a desk.

This increase is attributable to continued growth in occupancy of developing locations, improved pricing for both developing and mature locations, and an emphasis on growing ancillary revenue streams such as meeting rooms and virtual office, which has increased 31% and comprised $2.8 million of total flexspace sales for the period. Shifting attention to cost of sales, rent expense on our leased portfolio of WOTSO flexspaces has increased 14% to $5.5 million with the addition of new leased startup locations and increases in rental charges that are tied to a percentage of revenue levels.

As our flexspace sales increase, rent expense increases alongside this. Aside from rent, other operating expenses have only increased a modest 2%, with this increase attributable to new startup locations coming online.

Across the balance of the group, operating costs have seen a reduction of 7% as the group has focused on cost containment through expense reviews, supplier price negotiation, and identifying operational efficiencies. Similar comments extend to overhead and administrative costs, which have also decreased 7% despite the expansion of the network.

We believe our overhead is well-positioned to maintain current levels with minimal growth while absorbing the continued expansion of the flexspace business. Overall, the result of those efforts is an increase in underlying EBITDA of 6% to $5.4 million.

Looking at our balance sheet on page 13, the execution of our strategy to grow the flexspace business is supported by strong underlying property holdings with a healthy level of gearing. Net assets at 31 December sat at $110.8 million, reflecting a decrease from June primarily due to a reduction in the valuation of the Yandina property following the outcome of the sales campaign, as well as foreign currency translation of assets on our balance sheet denominated in New Zealand dollars.

Fit-out, property, and equipment has also decreased as depreciation charges have outweighed actual capex spend, which has also been partly offset by landlord contributions on new locations. The sales campaign of Yandina saw the group divest from this asset in February, subsequent to the 31 December period end.

The disposal for $27 million reflected a discount to the carrying amount in June of $29.25 million, but despite the decrease in book value, the sale has released $17 million of capital that can be used to support the growth of the WOTSO flexspace business. Looking at the group's borrowings on page 14, there hasn't been a material change in our level of borrowings during the period.

However, it hasn't been a quiet six months with respect to capital management, as we were successful in restructuring and extending the $44 million cross-collateralized facility held with NAB into three separate facilities with an effective margin across the three facilities of 1.73%, down from 1.83%. This restructure resulted in carving the Dickson and Symonston assets out of the cross-collateralization and into completely separate standalone facilities.

Current borrowings at 31 December sat at $33 million, of which $23 million reflects debt with upcoming maturities in the next 12 months, and the remaining $10 million represents the Yandina facility, which was repaid subsequent to period end. Of the $23 million in expiring debt, we expect to renew each of these facilities on similar terms with existing lenders, with the exception of the Hobart and Newcastle security currently held with ANZ, as we are exploring shifting this facility to NAB in line with a number of our other facilities.

Net gearing at 31 December sat just below 32%, but this has decreased to 26% post-period end with the sale of Yandina and the termination of that $10 million facility. The sale of Yandina has unlocked proceeds that has bolstered our cash position, which we will look to redeploy into growing the flexspace business over the next few months.

While we wait to deploy these funds, proceeds have been used to offset debt in redraw facilities and earn interest on short-term term deposits in order to reduce our net finance costs. With that, I will now pass it back over to the moderator for any questions.

There are no online questions either, for confirmation. We'll give it another 30 seconds for anyone to sort of ask any questions online or verbally.

Oh. This question's from Brendon Harrington online.

"Hello Jess, Stuart, and Chris. Hope you're all well, and thank you for the presentation.

The capex per square meter reduction is fantastic. Do you think that this $450 per square meter will be sustainable?

How high do you think ancillary services can become as a percentage of total revenue? Can you please speak to how the absence of Yandina's net rental income will impact free cash flow?

Can you please speak to the type, size, location, and timeline for new property investments made with the Yandina proceeds?" Awesome questions, I love these.

Brendon, can I start with the capex question, maybe? In the market, the next deals that are in the pipeline all have capital contributions from landlords, and I think it is at this point in time sustainable to achieve around that $450 a square meter.

Jesse, it's Stuart Glew here. Can I leap in and say that pretty much our position at the moment, because we're being offered so many opportunities, is that if the fit-out contributions and the work is not there, then we're not taking up those locations.

Certainly in the short to medium term, I would expect our cost to continue to go down. That may change of course if the market changes, but right now we've got a lot of opportunity being pushed our direction, and we have to be a bit discerning, and if the contribution's not there, then it's not getting my vote.

We're pushing back.

I certainly feel landlords have shifted in what they're looking for in terms of amenity to their assets, and flexspace or co-working, or whatever you want to call it, is becoming an important mix, in particular in assets that we're looking at in the suburbs and the regions, where we can be a feeder tenant to the balance of their assets. I think it's becoming something that they're wanting to partner with.

Build

customer base, isn't it?

They are. Yeah.

The next sort of part to that question was, how high do you think ancillary services can become as a percentage of total revenue? To be honest, the virtual office revenue continues to astound me.

It keeps growing month on month. We've recently introduced a new service, which is a registered business service.

We've been able to attack that particular piece because of our AFSL, and the new laws coming out around KYC, and I think we've been a first mover on that, and we've seen the VO revenue continue to grow, and it continued to be a service that in Australian and New Zealand businesses are seeking. To what percentage of the total revenue—

I'll jump in. I think virtual office fundamentally is different to our office and desk revenue streams.

Office and desk revenue streams are effectively capped, right? You've only got so much capacity to have x number of desks, x number of offices within a location.

Then obviously you're limited by how much you can increase pricing. Virtual office effectively has no capacity constraints, and so then it's really just comes down to what the market appetite is.

It's hard to say what percentage of revenue it could reach. The other interesting thing with virtual office is it doesn't appear to have the same seasonality that office and desk revenue streams have, which often as we have talked about quite a bit, all of our sales are on a month-to-month basis, and as we enter December and January, holiday slow-down periods, we see a bit of a dip in sales of those periods on office and desk revenues, whereas virtual office doesn't seem to be impacted by that nearly as much.

That's just two pieces of why virtual office is I think fundamentally different than our other revenue streams, and ultimately is really uncapped in terms of where it can go to.

Chris, maybe you will continue on with the next bit, which is around how the absence of Yandina net rental income will impact free cash flow.

We will lose the top-line revenue of Yandina and its costs. Obviously, we will save the interest expense on the debt.

Free cash flow in the short term will take a dip, in saying that, we've made a lot of improvements as we've highlighted in the results here in terms of cost management. We've reduced a lot of our costs, both operationally and at the overhead level.

Then at the same time, we've got a number of new sites coming online that are currently driving. As Jesse would have pointed to on page 5 of the slide deck, you can really see how the impact that the life cycle of our WOTSO locations has.

Startup locations will generally drive a loss, but then within a year to 2 years, they're breaking even, and then by three by third year, we're adding margins. Right now we're sitting with nine new startup locations that are driving a loss of about $200,000 for the half year.

We expect that over time we'll be able to ramp those locations up, cut down on any lost revenue from Yandina, and then we'll also be the capital we get from the sale of Yandina to invest in growing the flexspace business and ramp up all of the WOTSO locations from there. In the short term, I expect a bit of a dip that'll be offset by the ramp-up of SPDR and cost savings on our expenses, but over time, I think we'll be able to recover that.

Chris, can I leap in there too and say that having a bit of cash available on our books, I think is a valuable asset in itself. Yes, in the short term it'll negatively impact earnings and free cash flow.

I'm hoping that'll be more than offset by increases in revenue from the flexspace. Having the capital there so that we can take advantage of opportunities as they come up, in the past we've from time to time have had opportunity and we've been if we will borrow the money to be able to grab it.

I'm pretty comfortable with letting the cash sit idle for a while. I'm not in a rush for us to spend it.

Jess and Chris are probably more eager to get the money out than I am, and I'm acting as a bit of a handbrake there saying just let's sit for a while and let the opportunities come to us.

The final question, or final part to that question, is type, size, location, and timeline for new property investments made with the Yandina proceeds. I think it's

fair to say— Opportunistic. Totally opportunistic.

There is a lot out there at the moment in suburban and regional areas that is interesting to us. This Friday I'm heading up to Rockhampton to have a look at a property.

The properties that we're looking at are sort of circa 1,500 to 3,000 square meters.

Yeah. The potential bargains in the property world at the moment are in the cities where there's a lot of vacancy, but we don't have a lot of confidence in that.

It might take a long time for inner-city markets to recover and they might have a bit more pain coming. Whereas we think in the suburbs and regions, the small buildings that interest us, they're a great opportunity that we can put multiple uses, not just us, but gyms, coffee shops, childcare centers go with us pretty well if we find the buildings.

The difficulty there is getting the owners to sell. In small buildings there are some owners quite happy to sit with a vacant building for years.

We'll just have to keep looking and I hope that a few fall our way.

Brendon, you've asked a second question there, which is: "Can you please speak to the North Strathfield location and an initial interest in Cook Space? Also, my apologies if this has been covered before, though what is Vicinia?"

Huh. Maybe we'll start with North

Strathfield. Can I leap in again?

In North Strathfield, we're in the process of clearing out the top floor of the building that we own in that area, and we'll be migrating WOTSO there in the second half of this year. One of the problems we have is that when the guys did the deal for us to go to Rhodes, I thought, well, that's going to start hollowing out North Strathfield, but they backfilled it pretty quickly.

Rhodes is not very far from us. It may well be that we set up the new space and it doesn't create a hole in the old space.

What happens from there will depend. Our landlord is particularly difficult.

This is not a small litigation for us and for them. They've now got state government approvals to put 50-story buildings where we are, and my personal belief is they're doing everything in their power to try and get rid of us.

We had a right to abate rent, which we did, if they damaged our premises or if the premises were damaged. They are arguing that because we abated the rent, they've been able to validly terminate the lease for non-payment of rent, they say we're on a monthly tenancy for that.

They also say that we're in perfect, good condition, therefore we don't have a right to abate, but they followed that up with a termination notice saying that the problems with the building are so great that the building is irreparable. We don't know how those two things sit together, and this could be a mess going on with them for some time beyond the court case date that we've got.

We've just set ourselves up so that we'll have our new business set up in the building next door, we'll have the business set up in Rhodes, and we'll let the North Strathfield thing run its course.

To the initial interest in Cook Space, Brendon, it's interesting. When we first announced the concept, there was a pile of interest.

That was about 2 years ago, maybe 3 years ago now. Taken us that long to work through the town planning.

We now have 10 kitchens, and we are responding to how the market is responding to the space. There is a lot of inquiry for day and weekly use, day use of the kitchen, weekly use of the kitchen.

One of the 10 kitchens has been let out, and I think what's making it more challenging is that our pricing is reflective of the capex that we deployed into that space, and so we are holding firm at this point on that pricing for monthly deals, but the day pass and weekly pass, we're meeting the market there. We'll continue to see how that goes, but it's been a really fun experience, and I'm looking forward to seeing the space up and running.

If you do get a chance when you're over here in Oz next to pop out to North Strathfield, it's awesome. It looks great.

The murals that we've done through the alleyway and the way that the kitchens can feed out into sort of an eat street concept is quite fun. Then in terms of Vicinia, that is the company that holds our software platform, Hamlet.

I think we pass back to the moderator now, as there are no further online questions, and perhaps if there's any further verbal questions.

Great, thank you very much. I think we'll end it there.

Thank you.