Thank you for joining us today for our half year 2026 result briefing. I'm joined by Sophie Moore, our CFO, and Edward Geschke, our Chief Operating Officer.

Together, we we have the privilege of presenting the company's results. Our results pack, including the slides for the presentation, have been lodged with the ASX and should be visible now via the webcast.

Our first half 2026 result reflects another significant milestone in the evolution of Eagers Automotive. During the period, we delivered record earnings, successfully completed the Canada One investment, and continued to expand strategic growth platforms across the group.

Today's presentation is structured around five components. We'll start with our trading highlights, then provide financial, operational, and strategic updates.

Finally, we will move to our outlook. As you move through the presentation, there is one underlying theme I would encourage you to keep in mind, and that is that while this result demonstrates record current performance, what excites us most is the platform we are building.

Eagers is becoming a more diversified business with a broader international footprint, and in turn, we are creating a growing range of opportunities capable of creating value for shareholders over the long term. With that, let's begin with an overview of the result and the key takeaways from the first half of 2026.

One of the defining characteristics of Eagers Automotive is the ability to grow consistently and materially while maintaining discipline. In our view, growth and returns are not mutually exclusive.

Our objective has always been to build a business that can grow sus- sustainably, improve productivity, strengthen margins, and create long-term value for shareholders. The first half of 2026 is another demonstra- demonstration of this in action.

Our half-year revenue increased by 24% or approximately $1.6 billion to a record half-year turnover of $8.1 billion. Importantly, even excluding the Canada One contribution, like-for-like turnover increased by approximately $500 million, highlighting the continued strength of the underlying business.

Underlying return on sales, or our net profit margin, increased to 3.1%, despite ongoing industry transformation and general economic pressure. Now this reflects the benefits of our scale, our productivity strategy, and the continued execution of our long-term optimization plans.

At Eagers, we always take a long-term approach, which is probably not surprising for a 113-year-old company. The chart on the right demonstrates the transformation from approximately $3.8 billion of turnover in 2016, pro forma base approaching $19 billion today.

In doing so, creating one of the largest automotive retail platforms globally over this last decade. Importantly, that growth has not come at the expense of shareholder returns.

On a pro forma basis, earnings per share will increase by approximately 22% when incorporating a full 12 months of Canada One earnings, highlighting both the earnings quality of the acquisition and the value creation potential of the combined platform. Now the message from this slide is simple: Eagers continue to deliver strong results today while building an even stronger and larger platform for tomorrow.

We've demonstrated a proven ability to grow through cycles, and we believe the opportunities ahead of us, both in Australia and internationally, are greater that it than at any point in our history. Moving now to the financial scorecard.

During the first half of 2026, Eagers delivered record half-year revenue, which pleasingly translated into record half-year underlying operating profit before tax of $250 million. A key highlight is the contribution from Canada.

While we've only recognized two months in this result, Canada One delivered approximately $1 billion of revenue over the two months and more than $43 million of underlying operating profit before tax, reinforcing our confidence in both the quality of the business, the quality of our partners, and the strategic rationale for the investment. The combination of Australia, New Zealand, and Canada resulted in new vehicle deliveries exceeding 111,000 units for the half, up almost 27% on the prior period.

In Australia alone, we increased new vehicle deliveries by 16% or more than 14,000 units in the half on a like-for-like basis. Now, taken collectively, these metrics highlight that we are not just building a larger business, it's stronger, it's more resilient, and it's increasingly more diversified.

Before discussing our results any further today, it's important to Eagers and critical for us to explain what drives Eagers. That is, the real story that sits behind the numbers and supports long-term investment in this company.

At Eagers, we are adamant that culture is the foundation to all great companies, and it's this culture built over decades, protected and enhanced everyday that allows the company to deliver. Now, this slide is not a theoretical framework.

It's something we consistently demonstrate through our actions. Importantly, our culture is the foundation that is building a strong and sustainable business, which is a safe place to invest.

This foundation then enables optimization, which improves returns and in turn, drives our growth. Many organizations pursue growth first.

We've consistently taken the opposite approach. We focus on building a better business first, earning the right to grow, and then scaling from a position of strength.

This philosophy has served us exceptionally well over many years. Back in 2019, Eagers Automotive undertook what was arguably the most significant transaction in our company's history.

The merger with Automotive Holdings Group transformed Eagers from a strong regional automotive retailer into Australia's leading integrated retail group. It materially increased our scale, it strengthened our capabilities, and it created the platform that has underpinned our growth over the last seven years.

We did not simply become larger following that merger. We integrated it successfully, we optimized the business, we improved productivity, we expanded margins, and we've now built one of the strongest operating platforms in the industry.

Moving to our partnership with Canada One, which we completed in the first half of 2026, and this represents our second significant step change. It establishes greater scale and broader capabilities while also entering a significantly larger addressable market.

A Canadian market that is both more fragmented than the Australian market and with more favorable industry economic dynamics. That is a very compelling combination.

The first step change with AHG delivered incredible shareholder value. Our second step change with Canada One represents the next chapter in that journey.

Now, the first test of any acquisition, investment is whether the business performs in line with expectations following completion. I'm pleased to report that Canada One has done exactly that.

While these results include only two months of ownership, Canada One contributed approximately $1 billion in revenue, $58.8 million of EBITDA, and $43.2 million of underlying profit. At the same time, our Australia and New Zealand operations continue to perform strongly delivering revenue growth of 8%, profit growth of 5%, and maintaining a 3% return on sales despite market conditions.

The more interesting question is not what Canada One contributed over two months. The real opportunity is understanding what the combined platform looks like over a full year, and why we believe the transaction represents a transformational step in the evolution of Eagers Automotive.

Slide 9 demonstrates just that. The the upper section on this slide represents the last 12 months of Eagers, including 12 months of Eagers actual Australia, New Zealand result, plus the two months contribution from Canada One.

Almost 20% higher volume, 23% higher PBT, improved margin, and a 7% lift in EPS. It's the lower section of this slide, however, representing the pro forma basis, that we see the truly transformative outcome this merger will deliver.

Revenue increases from $12.2 billion to approximately $19 billion. EBITDA increases to approximately $938 million per annum.

PBT increases to approximately $653 million. All with an expected 22% lift in EPS.

I'll now pass over to our CFO Sophie Moore to take us through the financials.

Thank you, Keith. Today, as Keith said, we released our record financial results for the first half of 2026 financial year.

The results included two months of trading from our Canadian partners, Canada One, which settled on 30 April. The headline numbers highlighted by Keith demonstrate the growing strength and resilience of our global business.

In the six months to 30 June, we delivered strong growth with both record revenue and profit compared to the prior corresponding period. Underlying EBITDA reached a record $364.6 million with a margin of 4.5%.

This remained above the long-term average of 4.1%, demonstrating the benefits of scale, operating leverage, and cost discipline. Slides 36 and 37 in the appendix reconcile statutory and underlying EBITDA and profit before tax.

Underlying profit before tax was a record $250.4 million. Australia and New Zealand contributed $207.2 million, up $9.5 million or 5% on the prior corresponding period.

As Keith said, Canada One contributed a profit for two months of $43.2 million. Return on sales margin remained strong at 3% in Australia, New Zealand and 4.2% in Canada, with both businesses continuing to outperform industry averages.

Statutory PBT was $243.1 million compared with the underlying profit before tax of $254 million, with the differences driven by acquisition, capital raising, and integrated integration costs during the period. Overall, this result demonstrates the benefit of scale, an optimized operating model, and sustained productivity and cost discipline.

Moving to slide 12. Eagers remains in a strong financial position, supported by a substantial property portfolio, a resilient asset base, and significant balance sheet capacity.

Our approach to capital management links back to our culture of business sustainability, growing the group's profitability while also strengthening our underlying asset base. We have consistently delivered both, including through 2025, a transformative year for the group.

At 30 June 2026, group corporate debt net of cash was $674.9 million million. Long-term debt supports our $1.6 billion property portfolio in strategic locations across both Australia and Canada.

On 30 June, the group held $624 million of property equity equity, reinforcing the strength of our asset base. Total liquidity is supported by $1.9 billion of committed core debt facilities from our Australian syndicate and captive partners, with maturities extending from 2028 to 2044.

Undrawn facilities totaled $735 million at 30 June. Additional liquidity was secured in Australia in both 2024 and 2025, reflecting our finance partners' commitments and confidence in the Next100 strategy and our ability to perform through all cycles.

Canada One has also refinanced its corporate debt facilities with its long-term finance syndicate group in June 2026, providing more than $700 million of undrawn capacity to support growth. Lastly, I would say we are well positioned to continue to fund growth opportunities through this disciplined execution and deliberate capital allocation in both Australia and North America.

I will hand back to Keith now to cover the operational highlights.

Thank you, Sophie. Looking now at the first-half business performance in Australia.

When adjusted for the brand brands that don't report in VFACTS and report via the EV Council, the industry overall grew year-to-date. It culminated in an all-time monthly sales record in June of approximately 140,000 new vehicles.

Into this record total market, Eagers delivered record market share, with 17.9% of the new car market delivered by Eagers, representing an all-time record share for our total new vehicle monthly deliveries and market share. This incredible outcome is a result of anticipating where the industry will go a number of years ago, position positioning the business to win this trend, and then executing on this winning position.

The bigger story, however, is the changing demand for plug-in vehicles in Australia. In 2020, new energy vehicles, which represents any vehicle that can be plugged in, whether that's full battery electric or plug-in hybrid, represented less than 1% of the Australian market.

Today, they represent approximately one-quarter of new vehicles sold. Into this, the fastest-growing segment, Eagers continues to deliver more than 30% of all vehicles in Australia.

A great example of positioning the business to win the trend. One of the most important principles within Eagers is that growth alone is not enough.

For more than a decade, we have followed a very deliberate strategy of earning the right to grow by continuously improving the quality and productivity of our business before pursuing the next phase of expansion. This slide demonstrates the outcome of that discipline.

Since 2019, we have materially increased scale across the group. Importantly, at the same time, we have systematically optimized the operating model by an obsession, an absolute obsession with productivity.

Now we've talked about our productivity obsession relentlessly since 2021. Probably one of the few companies to talk about it at every half-year briefing.

At Eagers, we don't simply ask teams to work harder. We consolidate operations using scale.

We develop and implement technology to assist redesigned work processes. Equally, at Eagers, we don't target cost out, we target waste.

In fact, we celebrate proactively identifying any waste in our business, because so often waste is linked to inefficient and unproductive activity in a in a large company. Finally, this is not an ad hoc program run from time to time.

It is every day in every way. Ultimately, it becomes part of the DNA of the business.

Let's look now at the evidence of this DNA. Since 2019, we have exited more than 100 leases while increasing owned property to more than $900 million in value.

We've streamlined our footprint, we've improved processes, we leverage technology, and we are supporting redesigned workflows with greater tech, which all materially increases productivity across the organization. Productivity has increased from approximately $900,000 in sales per team member per annum in 2019 to almost $1.6 million today, an increase of almost 75%, and above our ambition from a few years ago of only $1.5 million sales per person.

This is a result of deliberate and ongoing action. As a result, our underlying cost base before interest and depreciation has fallen from 14.2% of revenue in 2019 to a record low of 11.6% today, down from last year's previous record.

The key takeaway from this slide is that growth and optimization are not competing priorities. In fact, they enable and reinforce each other.

The larger we become, the more opportunity we have to improve productivity, enhance net margins, and create long-term value for shareholders. Simply, I've said it before, we are not just building a bigger company, we are building a better company at the same time.

The next slide demonstrates clearly how this overall operating model supports net margin outperformance of the industry. The slides 14 and 15 explained how we are winning the trend in a rapidly evolving automotive landscape and how in parallel, we've spent more than a decade optimizing our operating model.

The outcome of these combined efforts is shown on this slide. Quite simply, Eagers today operates at a level of profitability that is materially ahead of the broader industry.

Our underlying return on sales for the first half was 3%, which compares to an industry average, which includes Eagers, of 0.7 for the first half of 2026. Now that delta, when you apply it to our turnover, represents about $350 million in incremental net profit before tax that Eagers is generating compared to industry average.

It's quite staggering. Moving now to Canada One.

At the end of April, we completed the second significant step change in Eagers' recent history. Today, we're excited to be able to provide the first update on the performance of Canada One following its completion.

I wanted to share some interesting metrics to demonstrate the quality of this business and underline the confidence we have in our partners. We announced this partnership in the second half of 2025, and at the time, the average turnover of the Canada One business was $411 million per month.

We updated the market at the end of 2025, and the average monthly turnover had increased to $445 million per month. Canada One has continued this strong pace of organic growth.

With the first two months since completion uh since completion, turnover is up 7.5% on the same period last year. All organic, all like-for-like.

Furthermore, in May '26, the business, Canada One, set an all-time combined new and used retail car delivery record for the group. Not a bad result for the very first first month after the partnership completed.

When we announced this transaction, we outlined a clear investment thesis around partnering with high-quality operators, entering an attractive market, and creating a platform platform for long-term growth. The first two months are important because they provide early evidence the business is performing exactly as we expected.

To be clear, our expect- expectations were very high. It reinforces our conviction that Canada One is a growth platform that materially expands the future opportunity for Eagers Automotive.

When we announced our partnership with Canada One, the attraction was more than simply the business as it stands today. It's the opportunity to establish a leading position in a highly attractive market and create a platform capable of supporting long-term growth across North America.

The business today operates 42 locations across five provinces. It retails approximately 48,000 new vehicles per annum and holds a national market share of around 2.5%.

Across Canada and the United States, the North American new vehicle market represents approximately 18.6 million annual new vehicle sales, making it second only to China globally and more than 15 times the Australian market. This slide does not simply represent 42 dealerships.

It demonstrates a proven operating platform with industry-best leadership, deep talent, and long-standing OEM relationships, accessing one of the largest automotive markets in the world. We remain incredibly positive about the opportunity to expand in this market with further growth opportunities well progressed.

Excuse me. Moving on to our strategy update for 2026 half-year.

This slide brings together two themes we've spoken about through today's presentation. The first is that Eagers, certainly in Australia, operates in a changing market.

The second is that disciplined capital allocation is one of our most important competitive advantages. For many years, we have actively managed our portfolio with a simple objective: deploy capital where we are most confident of returns that can that can compound over the long term.

Now, let's look at the two thematics that underpin capital allocation in our industry. That is, who do we invest with and into which markets do we invest?

It's well understood that the automotive industry is undergoing historic change. We are no longer able to simply base partnerships on cyclical ups and downs within a single OEM brand portfolio.

Change and the impact on all OEMs is now structural. The bell curve on the left of slide 21 represents the market impact on the Y-axis, while the X-axis shows the market segments from low-priced used cars on the left all the way up to super luxury segments on the far right.

You can see by the bell curve, the largest impact sits on the transfor- transformation that is undergoing in new car segments up to $120,000 in value, with less impact on the luxury and super luxury segments above $120,000. The used car market on the left-hand side of the bell curve is without doubt the most insulated from the disruption of new OEM entrants and the changing consumer preferences to powertrains.

It's worth noting that even within the segment that is most impacted, which is mainstream new car brands, the impacts for each OEM, both established and new, is different. We have simply fa- never faced such a rapidly evolving OEM environment.

Now, looking at geographic market dynamics. You'll see a compelling metric on the right-hand side of this slide that supports the Canadian market opportunity.

The average revenue generated per new vehicle retailed is circa 30% higher in Canada than Australia. That's a staggering metric.

This is driven by higher average transaction values, higher used-to-new-car sales ratio, higher finance and insurance attachment rates, and bigger service and parts businesses on average. All of that occurs in a market that is 58% bigger than in Australia.

What this means is that to replicate the current size of the Eagers Australia, New Zealand revenue base, we could achieve that in Canada with just over 7% of the new car market in Canada, which is not an overly ambitious target based on our current 2% market share. Now, these two thematics are critical to understand, and they support several of the investments we anticipate announcing over the next 12 months.

Earlier this year, we announced the formation of our joint venture partner uh joint venture partnership with Grand Motors Group. This investment represents a 49% strategic interest in the Grand Motor Group, which includes Toyota, BMW, MINI, Mazda, and Kia across 11 locations on the Gold Coast and in Sydney Metro, which are two geographic markets that we are underweighted by representation.

This group represents approximately $490 million of annual turnover, sells more than 6,000 new vehicles each year, and it's settled on the 31st of July 2026. We look forward to growing this business with Greg Scott, the founder of Grand Motors Group, and his dealer partners.

We also announced the acquisition of Audi Centre Melbourne and Audi Centre Richmond, which represents a a targeted expansion with a brand, Audi, that we are equally underrepresented with. Together Together, they contribute approximately $140 million of annual turnover and more than 1,100 annual vehicle sales.

This acquisition was made from the Zagame Group, founded, owned, and operated by Bobby Zagame, who is the leading super luxury group in Australia. Slide 24 is an important example of disciplined capital allocation in practice.

We have just entered a process to divi- to divest our New Zealand franchised automotive operations to the Armstrong Automotive Group, led by Rick Armstrong, while retaining and continuing to invest behind our easyauto platform in New Zealand. The New Zealand market is undergoing an evolution of how brands are represented, and with the limited size of the new car market, increasing new entrants from China, and the prevalence of gray used car imports, it is dec- dictated an increasingly combined importer/retailer landscape.

Now, what this means is that without a strategic shift to our approach in New Zealand, Eagers would become structurally disadvantaged in this marketplace, with limited franchise new car growth potential available. easyauto continues to provide a scalable independent used vehicle platform in New Zealand with attractive long-term growth characteristics and alignment to our broader mobility strategy.

One of the themes we've discussed consistently over recent years is the evolution of Eagers from a traditional automotive retailer towards a broader mobility ecosystem. The investment with Carmo announced earlier this year is another important step in that journey.

It also complements both our franchised new car automotive network by driving new car vehicle sales, and our easyauto used car business with vehicle disposals and additional inventory to supply that business. The Carmo investment is expected to settle sometime in September.

Our ambition is simple: whatever mobility solution a customer needs, Eagers should be best positioned to help, whilst also participating in the economic value chain. Now on to easyauto.

Easyauto is the epitome of Eagers Automotive positioning that company to win the trend and leverage market opportunity. Now, we shared this bell curve earlier, but one other critical point must be highlighted.

Not only are used cars largely immune from the new car OEM transformation, but the used car market is circa three times the size of the new car market. Materially bigger, materially more stable, and with a materially less capital-intensive growth requirement.

Three key fundamentals, and only three, that make the easyauto business so compelling for Eagers Automotive. I'm pleased to report that our independent used car business continues to grow and perform.

During the first half, the business delivered another record performance, with underlying profit up 20% on prior year, and with 14% additional volume. Splitting out the easyauto retail component and ex- excluding the Carlins Auction business, and the metrics look even better, with retail volume up 30%, retail revenue up 40%, and underlying profit before tax increasing by 43%.

Today, easyauto is approaching 30,000 vehicles retailed annually pro pro rata and has established itself as the leading independent used vehicle retailer in Australia. One of the clearest indicators of the strength of the easyauto platform is that it that it continues to outperform regardless of market conditions.

In fact, it's a business with operating metrics that are institutional. They're not market-dependent, and that means it's profit that can be scaled more securely.

For the first half of 2026, the used car market in Australia fell 6%. easyauto grew sales by 30%.

easyauto margins grew by 11% when the retained values in the marketplace fell 7%. We continue to turn inventory every 35 days on average compared to a market average of 50 days.

These are the lead indicators and the operating discipline that makes the profit repeatable and scalable. Stock turn velocity velocity underpins easyauto.

Fast stock turns reduce risk, improve working capital efficiency, and provides greater flexibility in managing inventory levels as market conditions evolve. It is a considerable but, stock velocity is a theoretical theoretic pipedream unless you are able to have a consistent, large volume of the right-priced stock to supply the business.

Remember, there is no such thing as a used car factory from which to source your inventory. This is the moat that exists around easyauto and the globally unique com- competitive advantage that Eagers' 16% and growing new car share and the access to trade-ins is provided.

I hope that Eagers Automotive could never be accused of being passive or lacking ambition. We also like to think we are transparent in communicating our plans, and this slide is a case in point.

easyauto has now reached approximately 30,000 vehicles retailed annually and has delivered another record performance. The Australian used vehicle market is valued at approximately $100 billion per annum and remains around three times larger than the new vehicle market.

The pathway for easyauto to retail 100,000 vehicles per annum by 2030 is clearly defined. Importantly, it's not dependent on a single initiative.

When we look at easyauto, we see a clear pathway to becoming the scaled national leader. Few opportunities offer that combination of market size, proven execution, and future growth potential.

On to the outlook. As we look ahead, we are focused on growing a bigger and a better business.

The second half of '26 for Eagers will be characterized by five key factors. The whole industry and for Eagers will be characterized by continued new car portfolio optimization.

That's nothing new for Eagers. We've been doing that consistently over the last decade.

Eagers' outperformance of the industry on a margin basis will be supported by our larger Tier 1 OEM partnerships. We'll have strong Canada One contributions with a positive outlook for the second half and with a particular Toyota skew, which mirrors the Australian expectations for Toyota also.

We will continue to scale easyauto, and we will integrate the recent acquisitions and strategic joint venture partnerships. Turnover growth will be strong whilst we expect to maintain our material net profit margin outperformance of the wider industry.

Looking to 2027 and beyond, the bigger and stronger we get, the more active we become. This activity extends to both existing business optimization optimization as well as organic, greenfield, and acquisitive growth.

The most important point to the Eagers growth pathway is that we outlined is it's not dependent on a single transaction or a single market or a single initiative. Rather, we have built a portfolio capable of delivering multiple years of earnings growth through disciplined execution and deliberate capital allocation, while we continue to evolve our partner platform model.

In such a dynamic industry globally, this platform provides solutions for a wide range of industry participants. Solutions for new brand entrants, solutions for established brands looking to new business models, solutions for stand-alone businesses to join the platform, where all parties mutually benefit from the scale and value it creates for customers.

It's becoming a globally unique competitive advantage that is very difficult to replicate. Today's results demonstrate the strength of Eagers Automotive, the quality of our people, and the effectiveness of the strategy we've executed over many years.

We've delivered record financial performance, we've successfully entered the Canadian market, continued to expand our portfolio of growth platforms, and further strengthen the foundations of the group for the future. Now, importantly, none of this happens without the extraordinary commitment of our people.

Across Australia, New Zealand, and now Canada, thousands of team members continue to deliver for our customers, support our business partners, and represent the wider business every single day. Their dedication, professionalism, and commitment to continuous improvement are what ultimately drive the results we get the privilege to report.

Eagers Automotive has successfully evolved for more than 113 years, and today we are allowing laying the foundations for the next chapter of that journey, based on the quality of the people we do business with, be they employees, our customers, our valued business partners, or our shareholders and investors. We look forward to updating you on the on our progress as we continue building one of the world's leading automotive retail and mobility platforms.

Thank you so much for your attention.

Hi, good morning, team. Thanks for your time.

Uh Firstly, just in terms of margin expectations into the second half. Keith, could you just give us a sense of how you think the Australian business is sort of positioned, um yeah, and and where you think those uh PBT margins sort of sort of head towards in the second half, please?

Sure, Phil. Uh hard to judge exactly.

Uh the I think the comment that we've made in our presentation as we continue to grow the outperformance that Eagers delivers compared to the industry. We're more fortunate than most.

We've got some very material um uh parts of our business and relationships with some brands that we expect very strong second halfs with. Uh there was a call-out around, um this this the well-documented skew that Toyota, both in Canada and Australia, is likely to um be able to produce.

Um we've got a number of other very large um positions with really strong uh businesses that we expect a very strong second half from. That will certainly underpin outperformance.

One stat that is really interesting that most people don't know is this talk around portfolio optimization. Since 2019, we certainly don't uh communicate this widely, but we've actually sold, closed, or consolidated 109 dealerships, which most people don't realize.

In the last 12 months, we have opened greenfield operations in 93 different locations. The reason I give those stats, Phil, is that we're super active on managing our portfolio to be the best portfolio.

It's not just about growing market share, and we sit at 16% of the new car market, it's making sure that we've got the best 16%. If we've got with the best portfolio, if we continue to manage our business in a disciplined way, and and drive our costs down and optimize our operations, we're likely to significantly outperform.

As we see the second half, we usually have a an improvement in the second half return on sales because uh of KPI checks from some large OEMs. Um we don't expect that to change this year.

As I said, we've got a couple of key OEMs that will have a very strong second half. easyauto will continue to grow and its returns are very good.

Um and then we've got six months of Canada on top. As we sit here today, uh we don't we don't see a material change on what we've produced previously.

Okay. Thanks.

Um just pivoting to the opex line. Uh that did beat my expectations, so well done once again, and and you've obviously got a long track record of of driving productivity and efficiency.

Again, how much more do you feel like you've got in terms of opportunity, um to continue to squeeze, your business a little bit a little bit more, and and continue to drive that efficiency going forward? Um

it's interesting, Phil. I wouldn't put a number on it.

Uh it's a and it's a good question to ask. The best way to answer it is we've got so far to go in terms of rolling out the initiatives that we've got.

I sit here and um oh, be quite frank, I'm frustrated with our lack of progress on a on a number of the productivity initiatives that we've got. Even though we've been doing them for five or six years, I I believe there's a lot more to be done in that.

The other thing is that obviously that, as a percentage of of revenue, that gets driven down with the scale that we drive and the operating leverage. It's a combination of both.

It's it's that operating leverage out of scaling the top line as well as the initiatives. We've got, oh, I've got Edward with me, we probably have six different uh technology initiatives that are in early-stage rollout that will make uh material benefits there.

It's a big part of our uh As I said in the in my speech notes, it's a big part of our DNA because we don't ever profess to to, gross better than other dealers that represent the same brands as us. We might from time to time, and we certainly try and create more gross opportunity through ancillary performance, like finance, insurance, car care, and things like that.

Ultimately, our success is is uh based on having a lean operating model that is the most productive in the industry, and that's what we keep delivering on. Hard to put a number on it, Phil, but uh there's still plenty of road ahead.

Okay. Thanks.

Uh thanks for your time, and I'll jump back in the queue.

Thank you.

morning, guys. Um just at the AGM, I think you guys said orders outstripped deliveries by about 29%.

It looks like you've delivered quite a lot in May and June, but are you able to give us an update of of that order versus deliveries at at the end of the the half just so we can I guess assess what you know what's going to happen in the second half? Thanks.

We're still sitting there, Tom, with an order bank of more than 25,000 units, we still got a very, very substantial order bank. We were fortunate that we were able to deliver into the half-year probably better than um some others.

I also should point out that our order bank and our order write was materially higher, even on a percentage base, than virtually anyone else in the industry. Um as we go into the second half of the year, um as we sit here in in August, order write on a like-for-like basis is up 4% in August.

Um pleasingly, and I've I've sort of flagged it a couple of times, we don't generally talk to OEMs specifically on our calls, it's one of the things Eagers doesn't do, but pleasingly on a number of those OEMs uh that we are overweight with or have a very large position with, um we've started to see that order write on a like-for-like basis lift uh uh, as we go into the second half, which is great. That under sort of pins the confidence that I just uh mentioned when I was answering the previous question.

Great. Thanks.

Then in Canada, um there's obviously been some changes um allowing Chinese OEMs into the market there. You've obviously got a pretty pretty good track record with BYD.

Can you maybe just talk at a high level how the discussions are going with the Chinese OEMs in the Canadian market to to potentially bring them in over the next few years? Um I'll

I'll talk about at a macro level. The the industry over there is uh very interesting.

It's a big market, 1.9 million, and the tariff-free Chinese volume is 49,000. It's almost immaterial in terms of that total market, and I think it only grows to 70,000 over 5 years.

Firstly, it is um It allows an entry into that market for Chinese OEMs, and I think that is um the most important point from an optics point of view for the, Canadian government and the Canadian economy. Um at the end of the day, Canada makes a lot of cars.

They produce a lot of cars. Over I almost 1.5 million vehicles a year are made in Canada, they've got a very big local manufacturing base that they need to protect.

I think that's actually the most important thing in Canada to remember, that they have that local manufacturing to protect. I think the Canadian market is uh Certainly, the door has been uh pushed ajar for Chinese entrants.

However, we expect it will be a while before it's going to become a material part of the Canadian market while things are as they are, um if that makes sense.

Yep. Great.

Thanks, Keith.

Morning, Keith, Sophie, and team. Congratulations on the result.

Thanks for taking my question. Just Keith, just interested in the EA 123 target at FY '30, targeting 100k, a pretty meaningful uplift from the 30,000 expected for '26.

I know you've had the bridge on the slide, but it'd be really interested if you speak to the execution of this in a little more detail. Um

big question, Jarrod, but thank you for asking it. It's an important question.

The the point of what we're talking about there is, and you can see the uh the bridge is made up of a number of components, and I'll just talk to those components. Optimization is is material, and it's more than 10,000 units per annum is out of optimizing our existing operation.

What that means is lifting the, I guess, the bottom 30% of our operations to equal the average of the top 30%. That will generate more than 10,000 units just out of the existing business.

The reason that's so important is that's the Eagers DNA I've talked about. You've got to make sure that your existing business is optimized and performing as well as it can before you rush off and and grow elsewhere.

There is still additional volume that will be trans- transitioned into easyauto as we roll out our strategy in our franchised automotive business. Think of as we again consolidate, redevelop property and traditional stand-alone very small-scale used cars, transition that those trade-in volumes and that uh very valuable uh used car inventory they get access to when they sell a new car into easyauto.

That's, an equal sort of weight in terms of uh volume there. The NEV upside is significant.

Uh one of the drags on the opportunity, not on our performance, but on the opportunity, is at the moment, NEV still has had an overweight um percentage of sales through the novated channels, and the novated channels are less conducive to allowing trade-ins to be uh captured. We are rapidly fixing that.

That NEV opportunity is significant, and to be able to use our scale partnerships with a number of key NEV brands um and to funnel in and capture even our group average trade-in ratio seriously moves the dial in easyauto. Fleet is partnering with large fleets.

Um again, we're having some incredible wins. We are the only plug-and-play national disposal um option for large fleets that can allow retail, auction, uh buy-it-now prices, uh sell on behalf of as a, consignment sale.

We've We have got a truly unique competitive advantage, and we're we're generating significant upside in fleet. Then the final is something that we've alluded to before, and that is um using our partner model, and the best example of that is this recent acquisition.

Uh our investment with uh Grand Motor Group is a classic example. We don't have any operations on the Gold Coast.

It's a fantastic market for used cars. When we spoke to Greg Scott, the founder of Grand Motor Group, we talked about the easy opportunity and to establish a beachhead on the Gold Coast, and that's highly appealing to him.

That is just a I guess a a breadcrumb of how the partner model um will roll out over the next three years. We're very confident.

Those bar graphs will some of them will be bigger and and some of them will be smaller, and some of them will happen sooner rather than later. We're fairly confident, and we wanted to communicate that, and we wanted to put the pressure on because that's our plan uh on the growth of easyauto.

It's really significant.

Perfect. Thanks, Keith.

That's clear. Maybe just one more, if I can, just on Canada.

It looks like the group's probably outperformed the broader market there, which is a little softer to start the year, but he's backing growth in recent months. Could you maybe just touch on, how much of that's been, being overweight in those big three OEMs which you are over there, versus maybe, the impact of operational execution from the Canada One team?

It's a combination of both, Jarrod. There You're absolutely right.

Being with the right brands, bit like the easy uh the Eagers story here, having the best portfolio is step one, then outperforming your peers in the market in those same brands. To give you a stat, the Canada One team are up 5.5% in volume in that period in that two-month period compared to those same brands consolidated in the marketplace being up only 0.7.

They continually outperform um their peers in the marketplace, and that goes to the quality of the operators. Uh an interesting stat is that, as we move into July, and why we're so confident about Canada, their turnover was up by 12.8%, July '26 versus July '25, which is fantastic.

Um and uh so we're we're really uh very confident in the way they're performing over there. The Canadian team, we've said it a million times, but I think we will continue to say, they are absolutely first class.

It's nice when they're first class and they're also confident.

Perfect. Thanks, guys.

I'll jump back in the queue.

Thanks. Hey, Keith.

Hey, Sophie. Uh just on Toyota in Australia, you typically get a so-called check from Toyota every November, December which is linked to volume.

Is the lighter volume in the first half of the year potentially going to affect the check size come November, December? Um

Chris, it won't be overly material. The reason is it's on annual sales, that that uh that uh what you're referring to.

Um and Toyota have very strong ambitions for the second half. I think, as I said, their uh lower volume in the first half was largely related to lack of um supply.

I'll give you an interesting stat. I think our deliveries for the first half were down circa 20%.

Order write was only down 7%. Even that's a misread, because that 7% wasn't because demand was down 7%.

It probably related to people who walked into a a Toyota store and said, "I'd like to buy Model X," and we said, "We can't supply for a number of months." They went and bought something else because they were urgent to buy a car.

It wasn't a lack of uh demand, and the order bank and the order write is strong. Toyota have very strong ambitions to um have a record second half of 2026, and we expect their overall year to be um still very strong.

The materiality of that check um when you fly that through to us is it it was it's immaterial.

You expect a similar check size come November, December?

Maybe slightly less, but it's not, it would be around the edges.

Okay. Just switching to Canada.

You you touched on this a bit before, but the current or escalating trade war between US and Canada, does does that have any impact on Canada One?

Um we're not overly concerned by it. Only Well, sorry, we're always alert to it, and we're always conscious of it.

This sort of looming ongoing trade war between Canada and the US has been going going on for 18 months, and the business over there is, like the rest of the world, is sort of getting on with life, and it's pretty much resilient to the headlines. One of the interesting things, too, that people don't understand, particularly in automotive, is that Canada is the US uh OEMs' largest trade partner for cars manufactured in the US.

The Canadian market takes three times Sorry, takes more cars than the next three trade partners added together. If there is any sort of tit-for-tat tariffs between Canada and the US, the net impact would be more material in the US in our industry, which means that the uh Big Three and the US manufacturers will certainly be um uh talking to the government in the US and saying, "Just be careful on what you do here."

Um we're generally Uh I think Canada, even with this Section 238 uh tariffs that they're talking about, would still have the third-lowest overall effective tariff rate um of any country that does business with the US. While it's uh getting a lot of headlines, um we don't expect it.

Again, we'll we'll be alert to it, but we're not overly concerned.

Sure. Just lastly, you mentioned, and it certainly appears, that Canada One performed well, but there was a re- revaluation of the contingent consideration.

What drove that? Uh

Chris, that was in relation to an acquisition in Australia that we did um more than 12 months ago, and that was an earnout that we had.

It has nothing to do with Canada One?

No. No, nothing to do with Canada One.

It was Australian, when we did uh an acquisition in the in the Queensland market. Um we put a $10 million consideration, and we released.

They didn't hit the quite hit the profit target, still got $2.5 on the balance sheet.

Yeah. Um

but yeah, we released that $7.5 in just statutory profit in this half.

Yep. My apologies.

Thank you.

Thanks, Chris.

Morning, Keith. Morning, Sophie.

Um just in terms of the Australian um PBT margin, it flat in an absolute sense, but relatively has improved again next to the industry and the peers. That relative improvement, if we look under the hood, how much of that is just that operational efficiency gain or the other elements that are contributing to that relative performance?

Like, easyauto is growing at a better margin than than the wider group, but just a bit more detail around the breakup within that 3% margin? Um

I think, Andrew, there is a a big part of it. I don't want to um be overly overly confident in talking about, the performance of the execution, but there is a big part in the way we've executed it and how we've leveraged our scale.

Uh the reason I say that is there's two components that have actually been a considerable drag on our return on sales margin in the first half, and that is um this Toyota skew. There was a significant um that as I said before, we're almost 20% down on Toyota deliveries for the first half of the year, which we expect to see significantly ramp up over the course of the year.

That was a significant drag to that return on sales. We're still carrying um uh, as we highlighted, the New Zealand market drag as well, which also impacts it as well.

There's a number of parts of the business that were in that first half result that were actually drags on our overall performance. The the reality is the way the margin has been um uh generated is through our operating model because And one of the things I will point out actually, Andrew, while I've got you, is uh the slide number Sorry, it's our return on sales slide.

This is an important one to understand. It's slide 16 for anyone looking at it.

On the face of our financials, you'll see that our our um uh our gross margin dropped in the first half versus uh first half of '26 versus first half of 20 25. That's an absolute misread if that people link that to uh margins on new vehicles.

That is because our gross profit margin for our business is a combination of what we make out of new cars, used cars, finance, service, parts, and KPI income, as people who follow the industry closely understand. What people tend to do is look at gross margin and think, "Oh, that's because margins on vehicle sales are up or down."

It's a total misread, because that gross margin can move up or down dependent on your mix. If you sell a whole lot of cars, new cars in a rapidly growing brand that doesn't have the associated service and parts income yet because there's a lag of 12 months and beyond, you'll get a distorted gross margin impact.

The bottom line to all of that is that the gross margin has been uh very resilient, um and our cost base is is what's driving our our performance.

That's great. Thank you.

Good morning, Keith. Good morning, Sophie.

Um thanks for taking my questions. Um the first question for me is just on the NEV demand.

Clearly you guys were a beneficiary of that in the period. Just curious um how you kind of anticipate that demand to track over the rest of the year.

Just wondering, how much is just like a structural change versus how much was kind of a pull-forward, and where you think that might normalize at?

It's a good question, Sarah, and I don't know whether anyone's got a definitive answer obviously at this stage. It's a little bit hard to to use what happened over March and April in the fuel crisis period when the Iran conflict first occurred as any sort of extrapolated demand because it was so extraordinary.

We've never seen anything like it. The one thing we have observed though is that the transition from a fully combustion engine car to a full electric vehicle, and that transition might include a hybrid vehicle, a plug-in hybrid vehicle, and ultimately a a full battery electric vehicle, is a one-way street.

Generally speaking, people transition to a lower-emission vehicle and um either hybrid and or plug-in, and they don't We're not seeing a lot of people who have gone down that path then selling out and coming back to combustion vehicle engines. Once you take a big step change, like has occurred in 2026, along that path towards a more plugged-in or lower-emission uh powertrain, people have sort of started the journey and uh it will only be a small fraction that will come back the other way.

I think whether it was a single catalyst that has just created a step change and now the growth will be more flat, whether it will tail off a little bit, or not, I don't know. We expect that the overall NEV, any car that's plugged in, uh portion of the market at circa 25% is we sort of think that's where it's going to be at the moment.

Right, thanks for that. Um just in terms of you talked about portfolio optimization, and as you've said, that's just something you've done for a long period of time, but just curious um in terms of uh adding other Chinese brands, presumably there's not only going to be one winner.

Just how are you thinking about expanding your exposure there as their market share in Australia grows? Um

we don't have a Chinese brand strategy. We don't have um Ultimately, we have brand strategies, whether they're established or new brands, and there is opportunity, a lot of opportunity in the established brands and the brands that we've represented for a long time, and there's some opportunity and some good opportunity in new brands as well, Sarah.

We've said it all along. It is not the the brand or the the total quantum of vehicles that a brand sells.

It's the economic model that an OEM creates. What that is is, how many vehicles do they bring in relative to the underlying demand?

What sort of income opportunities do they create inside their OEM around vehicle margins, KPIs, the ability to trade lots of cars, finance and insurance opportunities, and do they have a a profitable service and parts back end as well? Then finally, what's the cost base?

How many dealer, how many rooftops do they need in their network to deliver that volume? What sort of cost base do they apply to that OEM?

To be quite frank, the economics vary wildly across every OEM. There's never been more pressure on OEMs to get it right.

The total number of cars being sold in Australia is less of an issue than the economics that sit underneath the brand are. That's what we're really focused on.

We're spending a lot of time working with our partners to make sure that all our partners are successful for the long term. It may need some optimization of their networks, and we're happy and very keen to work with them and and help that happen.

The only other comment I would say is that, obviously, any brand that is growing is a good thing, and it's nice to be part of a growing brand. We'll we'll certainly look at any brand, again, new or established, and see what the growth potential is, and and we'll look at them and see whether they we think that's a brand that will be sustainably um uh able to uh grow in the Australian market with good economics underneath it.

That's what matters.

Great. Thank you.

Then just last question on Canada. Um there's been a bit of, I guess, a pause in this period on the acquisition um uh ac- activity there.

Uh can you give us a bit of an update in terms of, how we should think about that going forward now that the deal's complete? Should we kind of be expecting a bit of a catch-up given that we were we're coming off a slower period?

Um I

I think acquisition activity for most groups can be lumpy. Sometimes two or three happen all at once, sometimes nothing happens for a period of time.

Um so I think that is a fair assessment to say I wouldn't say there's going to be a catch-up. There might be.

Um but there is the the team over in Canada One are incredibly active at looking at opportunities. Their partnership with Eagers was prefaced on growing.

We were uh seen as um a great partner and an enabler for that growth. Obviously, you know Eagers well, and we want to grow.

There's no change in terms of mindset or appetite, and certainly no change in uh ability to grow. All of those things mean that we are working on quite a bit of um uh a quite a few opportunities at the moment, and it's hard to say, because I don't want to say a whole heap are going to fall at once, or one big one, or one small one, or whatever is going to happen, because uh it's a market that we don't operate in.

I could talk a lot more definitively about what would likely complete in Australia because we know who we're dealing with, but at this stage, we're dealing uh with our partners in Canada and and you know um I would say that there is going to be no lack of activity in North America for Canada One and Eagers over the coming year and beyond.

Great. Thanks very much.

Thanks, Sarah.

Hi, guys. Conscious of the time.

Um I'll just ask one question. The New Zealand franchise exiting the New Zealand franchise business, um was that in losses?

If so, roughly what what was the quantum um in terms of the sort of go-forward impact on exiting that? Uh

John, it was in losses. Um we haven't called that out, and I think it's a little bit sensitive to do it on an all uh all-persons group call, we might just um keep that uh to ourselves.

It was it the business was in losses over there, and that's been a drag on earnings for the last two years. Um Eagers aren't Eagers are disciplined about capital allocation, but we're not a fair-weathered partner to our OEMs.

Losses don't um create an immediate change in our strategy. What we do is look at the business, the business performance, can we improve the performance?

More importantly, we look at the dynamics of the market. The New Zealand market is a very small market.

It's I think it's smaller than Queensland. It's got just as many new entrants entering, mainly from China, that Australia has.

Um it's got a large gray uh import market, which means that reduces the size of the new car market and and has almost another channel for uh uh for customers to to consider. All of that means that the go-to-market model in New Zealand is changing.

We're seeing this huge uh convergence of importers, companies that actually have the rights to import brands into the country, and they also are retailers. They own wholesale and retail, and they play in the margin from top to bottom, and they, are able to benefit from setting up a network that suits them best.

Now, if Eagers Unless Eagers changed our strategic approach to match that, and decided we wanted to play in that space over in New Zealand, um I think we would have been further disadvantaged going forward. It's $325 million worth of um turnover uh per annum that will drop out in a full year next year.

It'll it'll probably complete late this year. Um and the losses are certainly more than seven figures and not quite eight.

Great. That's very helpful.

Thanks, Keith. Look forward to speaking this afternoon.

Thanks, John.

Thank you very much, and thank you to everyone who dialed in today. We appreciate your attention.

To any Eagers staff um that dialed in today, I wanted to specifically thank you for all your efforts. It means a lot to us to be able to report your great results.

It's an absolute privilege. Thank you for your attention and all your great efforts.

Um we continue to be very excited about where Eagers is going, and hopefully today, we've given you a real sense of what the remainder of '26 looks like, but much more excitingly what '27, '28 and beyond looks like. Um this is a a a great opportunity for this business in the future, and and we certainly see the growth and the performance growing.

Thanks, everyone.