Good afternoon, ladies and gentlemen, and Welcome to the 2026 Annual General Meeting of Fleetwood Limited. My name is John Klepec, and I am Chairman of the company. As with previous years, we are holding this AGM in a hybrid format, and I thank you for all your attendance here in the room, and those online. To commence, I would like to begin by acknowledging the traditional custodians of the land which we meet today here in Sydney. I acknowledge the Gadigal people of the Eora Nation and pay my respects to their elders, past and present. We have a quorum, so I declare the meeting open. Joining me today, from the board at the far left is Jeff Dowling, our Chair of the Audit Committee. Next to him is Mark Southey, who chairs our Remuneration & Nominations Committee. Next to Mark sits Adrienne Parker, our Chair of Sustainability Committee.
Rounding out the board is Martin Monro, who is the Chair of our Risk Committee. Next to Martin is Andrea Pidcock, our CEO of the company. By no means last, next to me here is Samantha Thomas, our General Counsel and Company Secretary. Fleetwood delivered another strong return to shareholders in FY 2026, including a fully franked dividend of AUD 0.19 per share. This outcome reflects the strength of our underlying businesses and our disciplined approach to capital allocation. Following the recent sale of Camec, Fleetwood has fully exited the RV business. This is a significant milestone given the company's very long history in operating in that market. Fleetwood is now exclusively focused on Australia's modern methods of construction sector only. Our two complementary divisions are Building Solutions and Community Solutions.
The key distinction is only whether we construct for customers and sell them on, or we own and operate the assets that we have created. So they are very close together. I will discuss the market in which we operate and Fleetwood's position within it. Andrea will then provide a detailed review of our FY 2026 business performance and also the outlook for FY 2027. Australia's housing crisis is well known. Severe shortages persist despite substantial federal funding and firm commitments to address them. Housing affordability across generations, major project cost explosions, and building insolvencies are now everyday headlines. These concerns are valid, but when you strip it all back, the fundamental problem is the cost of construction in Australia.
Three decades ago, when I worked for a major home builder in Perth, an average house cost just under AUD 60,000 to build, which equates to roughly about AUD 500 per square meter after allowing for today's larger homes. It was lower than that, but you adjust for the size of the home. Adjusted for inflation, that would only be roughly AUD 1,200 a square meter today. Actual costs of construction anywhere in Australia are well more than double the figure, with outcomes varying even here would be the highest in the land. How did we get here? How do we have housing that should be half the price of what it is now, and not just housing, construction across the board? The answers can be found in, which I have read it end to end, is the Productivity Commission's February 2025 report on housing construction, which explains underlying causes.
It found that the adjusted productivity in the sector had declined by 12%, while productivity in other sectors of the economy have increased by 49%. The trend since has only worsened. Producing half as many units whilst paying considerably more has inevitably led to today's crisis. Importantly, this measure covers the entire delivery process, not only physical construction. I won't go into the actual findings of the Productivity Commission report, but it's not just the trades, the cost of the trades, et cetera. It's the end-to-end process. Since that report, the government has acknowledged the need for action and tasked the Productivity Commission with further work. An interim report was published in July this year, with a final report recommending legislative changes due in March next year.
The government has also recognized that the National Construction Code is no longer fit for purpose and has forged changes while it is modernized. Of particular significance to our sector, a national certification solution for prefab construction is being developed with completion targeted for mid 2028. While these are all positive steps, although progress remains a lot slower than we would like, and not only us, others in the industry as well, obviously. Are modern methods of construction or MMC the solution? International experience shows that they can be part of it, but this has not been demonstrated at scale in Australia today, including at Fleetwood. The broader construction sector has neither industrialized nor adopted technology sufficiently, and that is where the opportunity lies, especially for MMC.
FY 2026 marked a significant transition in the industry with substantial capital investment in several major MMC projects across the country with more planned. Where does this leave Fleetwood in 2026? Our focus is 100% on reducing delivered cost. During FY 2026, we closed our Smithfield, New South Wales operation because the cost of operating in metropolitan Sydney exceeded what the market could support. Despite our efforts, the business continued to incur material losses. We've also begun the fundamental shift from construction to manufacturing. This work is ongoing but is essential to lowering costs. Otherwise, we remain merely an offsite builder in a shed. A lot faster, but neither more efficient nor less expensive. In FY 2027, we may supplement our production base by importing selected building components and completed products.
Agentic AI is an immediate challenge for every business in Australia, and we are considering its applications across every stage of our processes. We are also expected to make greater use of joint ventures and other collaborative arrangements to move at the required pace, contain costs, and accelerate the industrialization of the industry. Given its historical earnings, the market currently ascribes no value to Building Solutions, and understandably so. The board and management recognize this, and our strategy is focused on creating shareholder value from this part of the company. The opportunity is genuine, but realizing will require substantial effort with the potential for commensurate rewards. We see growing opportunities to own and operate the assets we manufacture. Community Solutions delivered another outstanding result, with Searipple Village operating with a full house sign-up for much of the year as it did last year.
We are not content to simply maintain this exceptional asset as some have incorrectly assumed. We are applying our knowledge and capabilities to expand and build on its success. The outlook remains positive. Australia continues to depend on large-scale resource developments and critical infrastructure projects, which require accommodation solutions delivered safely, efficiently, and at scale. This market confidence underpinned our agreement to acquire the Red Dog Village in Karratha for AUD 20 million. Completion is expected in January 2027, subject to the remaining conditions precedent. Together with Searipple Village, the acquisition gives us multiple opportunities and options to address workforce accommodation needs and broader housing challenges in the Karratha region. The accretive acquisition strengthens our builder position and establishes Fleetwood as the region's largest provider of integrated workforce accommodation. Our proven ability to both construct and successfully operate a combination assets differentiates Fleetwood in Australia should become increasingly valuable.
We intend to facilitate further developments by bringing together the necessary parties without placing our balance sheet at risk, not only in Karratha but elsewhere. The market recognizes the value of these assets, and we will look to add more to this portfolio. FY2026 also brought a significant change in leadership of the company with the appointment of Andrea Pidcock as the Chief Executive Officer. Andrea joined Fleetwood, I think it was the 1st of February, at the commencement of February, with a clear mandate to unlock opportunities across Community Solutions, Building Solutions, and strengthen the integration between the two. Since Andrea's arrival, we've acted decisively to simplify the group, sharpen our operational focus, and position the business for long-term growth. These achievements would not be possible without the dedication and hard work of our people, many of which are here today.
On behalf of the board, I sincerely thank all of our employees for their resilience, professionalism, and commitment throughout the year, which was a year of considerable change. Their focus on safety, customer service, and operational excellence remains central to Fleetwood's success. I also thank my fellow directors for their guidance, stewardship, and support throughout the year. Finally, to our shareholders, thank you for your continued support and confidence in Fleetwood. The board remains committed to disciplined capital management, sound governance, and prudent decision-making. We enter FY 2027 as a leaner organization focused on building a business that delivers sustainable earnings, strong cash flows, and attractive long-term returns. I'll now hand over to Andrea, our CEO, who will review the operational performance at FY 2026 and also the outlook for the current financial year. We'll leave all the questions to the end of both presentations. Over to you, Andrea.
Thank you, John. This is my first AGM, and it's my great pleasure to present our results from last year and our plans for the future. FY 2026 was the year of decisive action for Fleetwood. During the year, we made a number of significant changes to simplify the business and strengthen our foundations. This included exiting the recreational vehicles or RV segment and closing our Building Solutions manufacturing site in Smithfield, New South Wales. In July, we reached agreement with Bechtel to acquire Red Dog Village in Karratha, expanding our accommodation platform and Community Solutions. We now have a more streamlined organization with an expanded Community Solutions business, a lower-cost Building Solutions business, and we've completely exited the RV segment. These decisions position us for long-term sustainable earnings growth. Our FY 2026 financial results reflected contrasting performance across our operating segments.
Overall, underlying EBIT was AUD 35.6 million, with very strong cash generation of AUD 35.9 million, almost AUD 9 million higher than the previous year. This strong cash performance supported fully franked dividends of AUD 0.19 per share over the year, as well as the share buyback. Community Solutions had an outstanding year, delivering AUD 50 million of EBIT, supported by strong project activity in Karratha. Building Solutions did not meet expectations and recorded an underlying loss of AUD 8.7 million. I will speak to the drivers of this result shortly. First to Community Solutions. We are all incredibly proud of what the Community Solutions team has achieved over the past year. Searipple, our workforce accommodation village in Karratha, had a record 96% occupancy in FY 2026, and we are seeing that high demand continuing into FY 2027, where we are fully booked to the end of this calendar year.
We are contracted with Rio Tinto as their primary workforce accommodation partner in Karratha until the end of April 2027. We are currently in a tender process with them for their next five-year contract, which they are expected to award within the next few months. Osprey, the key worker housing estate in Port Hedland that we built and now manage and maintain for the Port Hedland Council, continues to be fully occupied and have a long wait list. In July, we agreed to acquire Red Dog Village from Bechtel. Red Dog Village is a modern, high-quality workforce accommodation facility in Karratha, with 2,169 rooms, nearly double the capacity of Searipple. This acquisition represents a key milestone for Community Solutions. Together with Searipple and our modular building capability, Fleetwood is uniquely positioned to support both workforce accommodation and residential development in this key economic hub. Building Solutions had a challenging year.
Performance was impacted by lower revenue in the first half and then margin compression in the second half. We also had significant costs incurred from a legacy project. While revenue grew in Victoria, South Australia, and West Australia, it declined overall in the first half compared to the same period in FY 2025. In Queensland, revenue was down in the first half due to a gap between big projects coming off and new projects being awarded. New South Wales was down as many tendered projects were delayed or canceled. Coming into the second half, we had a strong work in hand, and revenue picked up. As we worked through our order book, we found that a small number of significant large projects had not been scoped and priced accurately, and as a result, these projects did not deliver the margins we needed.
These low-margin projects have carried over into FY 2027 but will be completed in the first half. I appreciate that this result is disappointing. I want to assure you that as an organization, we are laser-focused on improving our sales targeting, scoping, and estimating processes. In June, we announced the decision to close our New South Wales facility in Smithfield to structurally reduce our costs. Since then, the Smithfield team has worked incredibly hard to ensure that all of our projects were completed, materials and equipment were transferred to other sites or sold or disposed of, and we were able to hand back the keys at the end of September. From October, we are going to be operating without the cost of the Smithfield site, and we expect to save AUD 8 million on an annualized basis, so around AUD 6 million over the remainder of the year.
We remain committed to New South Wales and have retained a core team focused on winning work and delivering projects. However, we believe we can support manufacturing for this critical market by leveraging our national manufacturing network. In RV Solutions, the market continued to face headwinds throughout the year as local caravan manufacturers struggled to compete with imports. During the year, we closed our local parts manufacturing, and we divested the Northern RV business in February. In June, we announced our decision to exit the segment completely, and in July, we agreed to sell Camec to Aussie Traveller. This transaction was successfully completed on September 1, with some costs associated with carry-over staff, stock movements, and lease surrenders continuing through the first half. Notwithstanding the challenging conditions, the RV business made a positive underlying EBIT of AUD 1.7 million in FY 2026.
The two business sales achieved AUD 14.3 million in proceeds and a further tax benefit of AUD 4 million will be realized across FY 2027 and FY 2028. Now for our outlook for FY 2027. The tough but necessary decisions that were taken in my first six months as CEO have simplified the business and reduced costs. We now have a streamlined structure following the divestment of Camec, an expanded accommodation platform in Community Solutions when we complete the Red Dog acquisition, a structurally lower cost base in Building Solutions from the closure of Smithfield, and a strong balance sheet with AUD 61.5 million in net cash at year-end. In Community Solutions, demand for accommodation in the Pilbara remains strong, underpinned by more than AUD 30 billion in major projects slated for Karratha, as well as the ongoing needs of a diverse range of large operations.
The long-term pipeline of work was behind our decision to acquire Red Dog Village, which will significantly expand our capacity in this active region. The fulfillment of our conditions precedent for the acquisition are taking longer than we expected, and we've extended our agreement with Bechtel to the end of January to allow for any delays. We've engaged extensively with local stakeholders, and we're really confident in achieving the approvals we require. However, the process of having interdependent approvals assessed through two different government agencies is proving a little more complex than we anticipated. Despite the challenging macro environment, Building Solutions has positive market conditions with continuing demand for education, a significant national housing shortfall, continued investment in resources and infrastructure, and of course, the upcoming Olympics. Building Solutions entered FY 2027 with AUD 156 million of work in hand, compared with AUD 100 million in the prior year.
Around 65% of our work is recurring through panel agreements, and we were recently successful in retaining our position on the Victorian School Building Authority's supplier panel for the next three to five years. While our focus in Building Solutions is on being more selective to target and win the right work, we continue to expect revenue to grow by around 5% over last year. The first half of FY 2027 continues to be impacted by Smithfield costs and the lower margin projects carried over from FY 2026, which will produce a first-half FY 2027 loss consistent with the outcome in second half of FY 2026. We expect Building Solutions to return to profitability for the second half of FY 2027. We continue to have a strong balance sheet supported by significant net cash, strong free cash flow generation, and ownership of key assets.
We were able to return AUD 21.6 million to shareholders through dividends and share buybacks in FY 2026. In Building Solutions, we have proven capability in key segments of the market, and in these segments, we have strong customer relationships, deep expertise, and we make good margins. We are targeting to grow in these segments nationally, and there is substantial opportunity. Looking ahead, our priorities are clear. To achieve sustained profitability and growth in Building Solutions, to complete the Red Dog Village acquisition and expand our Community Solutions model, and to lift capability and culture. Our first focus is achieving sustained profitability and growth in Building Solutions. My immediate priority here has been and continues to be to strengthen project governance to ensure that we target the right opportunities, price them accurately, deliver them to time and budget, and learn and improve with every project.
Our teams get it right and do great work most of the time, but experience shows that when we get it wrong, it can have severe consequences. Longer term, my focus is to strengthen capability, reduce costs, and unlock new market opportunities. John spoke earlier about the productivity challenges in the construction industry in Australia. I believe that applying manufacturing disciplines to building will allow us to standardize processes, reduce material and labor waste, better leverage scarce and expensive trades, increase delivery speed, and benefit from automation. With all of this leading to higher productivity and lower cost. I recognize that we have been talking about this for some time, and while some progress has been made, there is still a lot more to do. Earlier this year, we restructured our manufacturing operations into a national modular manufacturing division. This was a key enabler for closing Smithfield.
We have brought in new talent with manufacturing expertise to run our facilities and now have a balance of building and manufacturing capability across the business. Anthony Perazzolo, who is here today, has recently taken on leadership of our modular manufacturing division and is deeply experienced in lean manufacturing and supply chain best practice from a career in Toyota, Boral, Amazon, and CSR. We have also recruited David Haller, who is also here, who has a long career with Mirvac leading operational delivery. Dave is leading a comprehensive program of work to strengthen our foundations, develop standard playbooks for repeat work, build leading capability in sales, design, manufacturing, and project management, and better leverage technology. Our IT team now reports to Dave, reflecting the critical role of technology to support seamless digital workflows, give better visibility and control over projects, and supplement our people skills with artificial intelligence.
My second focus area is to complete the Red Dog Village acquisition and identify the best growth opportunities for Community Solutions. Our immediate priority is to finalize the approvals needed to complete the transaction, prepare for operational handover, and secure accommodation agreements with operators and contractors. We have a team working on the operational transition from Bechtel to Fleetwood, including agreements with suppliers, systems transition, and the accommodation agreements. And we are also modeling transient work and permanent residential scenarios across Red Dog and Searipple to maximize value. Beyond Red Dog and Karratha, we are actively investigating further growth opportunities for Community Solutions. We see these opportunities in both residential communities and workforce accommodation camps and are investigating different partnerships and funding models that would best facilitate them whilst protecting Fleetwood's strong balance sheet. My third focus area is on lifting capability and culture.
To achieve our ambition of becoming Australia's best modular builder and accommodation solutions provider, we need skilled people working together in a collaborative, performance-oriented culture. We have many highly experienced and capable employees who are committed to Fleetwood, to our customers, and to the school kids, the teachers, the families, and the workers, and the communities that we serve. We are also bringing in new leaders to lift core capabilities across construction, manufacturing, sales, and technology. I have met with every team across the business to hear directly what changes they want to see to make it easier for them to do great work, and their feedback has been incorporated into our programs. Before I conclude, I just want to recognize and thank our outgoing CFO, Cate Chandler. In September, Cate resigned to accept an offer from a non-competing business. Cate joined Fleetwood nearly three years ago.
During her time here, she has put in an absolutely huge effort to lift the standard and rigor of our accounts and has been professionally dealing with all of the challenges the business has faced. I want to thank her for this and wish her well in her next opportunity. I am pleased to announce that we have appointed Arno Becker as our new CFO. Arno has extensive experience in finance leadership of construction and infrastructure businesses in the listed environment. He was CFO at BSA Limited for five years and previously held senior finance roles with Navivia Construction, Fulton Hogan, and CPB Contractors. Arno will join us at the latest in January, but we are hopeful that he will be able to release himself a little earlier and join us in December.
In finishing, Fleetwood is a streamlined business with an expanded accommodation platform in Community Solutions and a structurally lower cost base in Building Solutions. We operate in large markets where our ability to manage accommodation villages and deliver high-quality turnkey building projects at speed solves real problems across housing, education, resources, and infrastructure. We have significant opportunities to grow nationally in sectors where we have proven capability. We have really strong customer relationships with long-term partnerships based on a track record of delivering high-quality solutions. We are creating enduring competitive advantage by applying manufacturing disciplines to building and by transforming our end-to-end processes, improving productivity, and developing a scalable and efficient operating model.
We have a strong balance sheet with a net cash position of AUD 61.5 million at the end of FY 2026 and ownership of key assets, enabling the payment of strong, fully franked dividends and share buyback. I would like to take this opportunity to particularly recognize the Smithfield and Camec teams who did an incredible job ensuring that the complex site closure and business sale projects were completed professionally, to plan, within very tight time frames, and with compassion for their colleagues and without major incident. I would also like to thank all Fleetwood employees for their continuing dedication and commitment as we work to make the most of the opportunities ahead for your company. Thank you. I will now hand back to John.
Thank you, Andrea. Today's meeting is an opportunity for shareholders to put questions to the board, to the CEO, and also to our auditors, Ernst & Young, who are represented here today by Fiona Drummond on the front here. We haven't had any questions for you in the past, so maybe we'll have one today. Maybe not. Anyway, I'll hand over to Samantha Thomas, our General Counsel, who will outline the procedural part of this meeting. Over to you, Sam.
Thank you. We welcome shareholders and proxy holders attending in person and in online to ask questions. In past years, only shareholders, proxy holders, attorneys, and corporate representatives are permitted to vote and ask questions. Please ensure your questions are relevant to the shareholders as a whole. There are two ways to ask questions. If attending in person, raise your hand and the microphone will be provided in the auditorium. If attending virtually, by either writing or verbally asking questions by the online platform. Please follow the instructions on the online platform and in the online meeting guide available on our website for further instructions. Questions will be addressed during the AGM and at the end of the AGM. Are there any shareholder questions relating to the Chairman's address and the Chief Executive's presentation? We do have some.
Yep.
The first question is, "Have the recent workforce cutbacks announced by Rio and BHP in the Pilbara affected occupancy and prospects of Searipple and Red Dog?" That's from our shareholder, Tony Moody.
Maybe Andrea to answer that one, operational. Maybe between the two of us.
Again, I think so. Look, at this stage I would say we haven't seen any evidence that there's any shortening of demand or slowing of demand for accommodation in Karratha. I'm not familiar with the Rio Tinto cutbacks in the Pilbara. I think a lot has been in other parts of their business. Nevertheless, certainly the investment pipeline remains strong with ongoing projects and that's really what's driving the high occupancy and high demands that we're currently experiencing and that we're forecasting to continue.
Thank you very much. The next question is also from Mr. Moody. Has the downturn in housing activity resulting from the recent federal budget impacted on your residential manufacturing activities or.
You would've seen in the slide that we do quite a bit of housing focused in two areas at the moment. One is in Queensland and one is in W.A. We do a lot of regional housing in Queensland, that's largely supported by the government to catch up with big shortfalls, and we don't see that slowing down at all. In fact, as John said in his speech, there's actually more government pressure to start to close the gap on some of the affordable housing and social housing backlog. In W.A., we're also very strong in lifestyle village-type housing. When I did a sort of ground-up review, there is a really big shortfall of housing. We provide a great affordable kind of solution into that. We aren't seeing any issues in our order book at the moment, but it is something we monitor very closely.
Following the departure of Cate Chandler, who will be handling your investor relations role? In my view, her departure has contributed to the share price weakness. Also from Mr. Moody.
I think we have addressed that. We have got a new CFO who starts in the business either at the commencement of next year or at the end of this year. So I do not think there is anything more to add than we have already addressed.
I will say, though, that I have been really impressed by how close to the investors Cate is and how much respect she has for the investor community. I think it is a real highlight of her tenure with us.
One question from Mr. Moody. Please outline your current dividend policy. Is it still 100% of earnings?
Yes, unchanged. 100% of earnings.
The final question is from shareholder Mr. Stephen Mayne.
Right.
Yes. In terms of resolutions, do any of the proxy advisors cover us? If so, did any recommendation on a vote against any of today's resolutions, including this remuneration report? It would have been better to disclose proxy votes to the ASX along with the formal addresses to provide more timely disclosure. Will you do this next year? Thank you for offering a best practice hybrid AGM today. Not many small caps do this.
You can answer that.
Okay. I can answer that none of the proxy advisors do cover us. We have two, and both voted in favor, recommended a vote in favor of all resolutions. In relation to the balance of the question, we obviously will consider that advice and work through the requirements required by the ASX as promised.
Yeah, the last part of that, we intend to continue with hybrid meetings. I think it works to get a bigger rather than people who can't be in the room. We're here to answer questions, be it online or otherwise. It works. Good thing coming out of COVID.
There are no other general questions.
That's it. Are you okay to do that, or you do it?
You do it.
You, you.
I will cover off the how to vote part. We will now move to the more formal part of the proceedings and deal with the resolutions. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote and in case you are not able to stay for the full meeting, on behalf of the board, I will now declare the voting open on all resolutions. If you are eligible to vote at this meeting, there are two ways you may cast your vote, in person or via the online platform. If you are present at the AGM in person, you may vote using the green voting card. The green voting card is for all resolutions. To vote, please mark your voting card either for, against, or abstain.
Your voting cards will be collected prior to the end of the meeting. If you do not have a pen or believe you are entitled to vote but do not have a voting card, please raise your hand and you are provided with one. If you are casting your vote using the online platform, select the vote icon and voting options will appear on your screen. To vote, select your voting direction. A tick will appear to confirm receipt of your vote, and the vote will automatically be recorded. There is no need to hit a submit or enter button. To change your vote, select click here to change your vote and select a different option to override your initial vote. You can change your vote up to the time the chairman declares voting closed.
If you require any technical assistance during the meeting, please refer to the online meeting guide available on Fleetwood's website or contact Computershare. We have worked hard to ensure the webcast runs smoothly. If you experience any technical difficulties, a recording of the meeting will be available on Fleetwood's website. I will now hand back to our chair. Thank you.
Okay. We will now move to the resolutions. The first item of business is to receive and consider the annual financial statements of the company and reports of the directors and auditor for the year ending 30th of June, 2026. This item does not require a vote. However, the reports are open for questions. As I mentioned, we arranged for the company's auditors, for the 2026 financial year from Ernst & Young, with Fiona Drummond here in the room, to be available to answer any questions about the conduct of the audit, the preparation and context of the auditor's report, the accounting policies adopted in preparing the financial statements, and the auditor's independence. Are there any questions relating to the item of business, first of all in the room? I know we have some online, but any in the room? No.
Sam, over to you with the ones that are online.
Yes, we have a question again from shareholder Mr. Stephen Mayne. Could the EY audit signing partner summarize the changes to key audit matters made over their time as auditor since EY was first appointed four years ago? How is preparation going for the first EY audit partner handover? Will EY offer up multiple partner candidates for the directors to choose from, and when will that process occur?
Fiona?
Okay. That is a lot of questions. Just bear with me for a minute just so I can do a bit of a preamble as we always do as auditors at the AGM. So before responding to all of those specific questions, I would just like to provide some context within which my responses are provided. The company prepares the financial report in accordance with the requirements of the Corporations Act, the accounting standards, and the regulatory requirements. The approval of the financial report is the responsibility of the board of the directors. The role of the auditor is to conduct an independent audit in accordance with Australian Auditing Standards, and to issue an independent audit report in accordance with the Corporations Act. It is important to note that our audit procedures were designed to provide reasonable assurance whether the financial report as a whole is free from material misstatement.
An auditor's work has been carried out for the purpose of giving a separate opinion on the adequacy of internal controls or on each caption of the financial report or on each KAM, key audit matter. We followed the Australian Auditing Standards in the conduct of our audit, and as a result of our work, we were able to issue an unqualified audit report on the financial report, which is outlined on pages 114 - 121 of the company's annual report. The question was, could the audit partner summarize the changes to the key audit matters made over time going back to 2024? In relation to the financial report, in each financial year, the auditor assesses the key audit matters that are important in that financial year.
Using our professional judgment, we look at what is the most significant item or items that we've spent time auditing, and that form part of the order of the financial report for those years. Where we assess an area of focus represents a significant amount of audit procedures or audit time or judgment, we incorporate that into our audit report as a key audit matter. In the FY 2026 financial year, we have four key audit matters. Two additional ones relating to the items that have been discussed at the AGM today, with the closure of Smithfield, and also the Camec Health sale. Outside of that, our normal key audit matters relate to goodwill impairment assessment and also the accounting for revenue recognition, and those have been consistent since 2024.
The other questions relate to the audit signing partner changes, will we offer up multiple partner candidates, and when will that process occur? Obviously, this is a company matter, so I will respond from Ernst & Young. But obviously, the Chair may want to add to that. EY has been the auditor for Fleetwood for five years, up to the financial year ending 30 June 2026. During that five-year period, we have already had a change in the audit partner. For 30 June 2024, I became the audit partner replacing the initial audit partner who retired from Ernst & Young. I have been the signing partner for three years.
In terms of offering up multiple partners in the future and the process that occurs, in the lead up to the change, the mandatory change in audit partner rotation, we would present multiple audit partners for the company and the Board in particular to assess and decide. The process and timing will be agreed with the Board. It'll be Board process, so maybe the Chair might want to add to that.
No. Jeff, if there's anything to add to that, audit-
I think we'd go through a process of receiving CVs from Ernst & Young, of various candidates. Clearly where they're located, what state, and we'd go through a process of reviewing those with Ernst & Young and form a view on who would be the most appropriate partner to succeed from Fiona when it's her time to retire.
Thank you, Jeff. Okay, I think we've addressed all the parts of that question.
I think that's-
Is there another one?
We do have one further question that we can ask at this point. Again, from Mr. Stephen Mayne. "The annual report reveals that activist shareholder Sandon is our largest investor with 13.8%. How do we deal with Sydney-based Sandon? Have they been telling us what to do, and to what extent have we followed their advice? Have they been influential on the questions of board composition, and are they in the room today? Have they voted in favor of all resolutions, including the two director?
Okay. I think there's multiple parts to that. We treat Sandon the same as we do all shareholders, as they are the largest shareholder, but no one gets any differential treatment. We appreciate greatly the support that Sandon's had for Fleetwood for many years now. I think that's the first part of it. What else did he ask? I think he's alluding to special. There's no special treatment. They haven't been influential on the question of board composition. They are in the room today. Yes, Stephen Mayne, they are represented in the room. Have they voted in favor of all resolutions? I don't know. Including the two directors re-election? I don't know. I think you'll find out if there's 13% no vote, Steven, that will be your answer. I can say yes.
Gabriel in the room here, Steven has answered yes on behalf of his company. Yes, they have voted affirmative for all three. Thank you, Gabriel. I think that addresses all of it. Any other questions before we move on? No. Okay. We'll move to the next item of business. The remaining items are resolutions for your consideration for voting. I intend to vote all open proxies in favor of the resolutions. The first one is the resolution to adopt the Remuneration Report that forms part of the company's annual report for the financial year ending 30th of June 2026.
The remuneration report details the principles used to determine the nature and amount of remuneration, sets out the remuneration details of each Director and other key executive management personnel of Fleetwood, and provides a detailed summary of the short and long-term incentives and how performance is measured against them. Voting of the resolution does not bind the company or Directors and is advisory only. Put to vote. Let's put it to vote. The proxy votes in relation to resolution one are on the screen. 84% for, 14% against. Are there any questions in relation to this resolution? There being none, I now put to the meeting formally that the remuneration report for the year ended 30th of June 2026, as set out in the company's annual report, be adopted. Please select your vote by marking or casting one of the options if you have not already done so.
There's one question.
Oh, there's a question.
Well, these have just come through.
Yes.
Has Sandon saved us from a strike today, given the proxy showed 15% against?
I think it is a hypothetical question because the motion has passed. Okay, let's move on. Done that one. We now move to Resolution 2, the re-election of Adrienne Parker as a director of the company. Adrienne has been an independent non-executive director of the company since August 2017 and serves as chair of our Sustainability Committee. A copy of Adrienne's bio is set out in the notice of annual general meeting and on Fleetwood's website. The board, with Adrienne abstaining, unanimously recommends that shareholders vote in favor of this resolution. The proxy results in relation to Resolution 2 are on screen. Are there any questions in relation to this resolution? There being none, I now put to the meeting formally that Ms. Adrienne Parker, being a director of the company who retires in accordance with Fleetwood's Constitution and being eligible, is re-elected as a director of Fleetwood.
Please select your vote by marking or casting one of the options available to you if you have not already done so. Now to the final item of the meeting, Resolution 3 is the re-election of Mr. Martin Monro as a director of this company. Martin Monro has been an independent non-executive director of the company since June 2020 and serves as the chair of our Risk Committee. A copy of Martin's bio is set out in the notice of annual general meeting and on Fleetwood's website. The board, with Martin abstaining, unanimously recommends that shareholders vote in favor of this resolution. The proxy results in relation to Resolution 3 are behind me on the screen. Are there any questions in relation to this resolution? Oh, Steven.
There is a question from Mr. Maine. 16% against Ms. Parker on the proxy, which is larger than usual. Did a proxy advisor recommend against? What is the issue? Why are the director candidates giving speeches? All proxy advisors recommended in.
I am not sure why you assume that a proxy advisor, because we said before, Steven, that the proxies advisors are all voted positively in favor of all the resolutions, so there is no proxy advisor. Obviously, there is 5 million shares that are voting against, and it seems consistent against the other directors. Who it is, I do not know. I think why the director candidates giving speeches, I do not think it is required. Their bios are in there. They would just be reading out their bios out of the report. So if you have any questions specifically against any of the candidates, I have asked you to put them to the meeting on votes. So, once again, that is a general question without any real reason why. So now, no more questions? Okay.
I now put to the meeting that Mr. Martin Monro, being a director of the company, retires in accordance with Fleetwood's Constitution and being eligible, is re-elected as a director of Fleetwood. Please mark your vote. Select your vote by marking or casting one of the options available if you have not already done so. So ladies and gentlemen, that concludes the discussions of items of business. I will now close the voting system. The final votes and the results will be released on the ASX platform later today. Now, just before we close, while the man is collecting the voting slips there, I welcome any further questions from here, anyone in the room or online before we close the meeting. So if anyone does have any more questions, those online type away, those in the room raise your hand.
There being no questions from the room and no questions online, that concludes our AGM today. Thank you for all your attendance, making the time to come out today. Look forward to seeing you again next year. Thank you.