Good morning, ladies and gentlemen. It is now 10:30, the appointed time for our meeting. My name is Harry Hodge, and I am the Chairman of Globe International Limited. I have pleasure in welcoming you to the 2026 Annual General Meeting of Globe International Limited, which is being held as a virtual meeting, and thank you for your attendance. I note that a quorum is present, and I declare the meeting open. Before proceeding with the business of the meeting, I would like to introduce my fellow Directors and senior executives who are joining us from Melbourne and abroad for the meeting today. Peter Hill, Director. Stephen Hill, Director. Chief Executive Officer, Matt Hill. Chief Financial Officer, Karen Browne, and Company Secretary, Samantha Cook. Also joining us from Melbourne is the PwC Partner responsible for our audit, David Patterson.
As Chairman, it is my intention to conduct an online poll on all resolutions to be put to the meeting using the electronic voting cards. I will call on Ms. Julie Stokes of MUFG Market Services to conduct the poll when each of the resolutions is put to the meeting. Shareholders can cast their votes as long as their registration has been validated. To validate registration, you will be asked to enter the security holder reference number or holder identification number, plus the postcode if you are in Australia or the country if you are outside Australia. To then cast your vote, click Get the Voting Card button. Shareholders have been given the opportunity to submit questions prior to the meeting and will also be given an opportunity to ask questions during the meeting.
To ask a question during the meeting, click on Ask the Question button, and from this point, questions can be either submitted in writing or verbally by selecting the Go to the Phone options. Please note, only shareholders and proxy holders may ask questions in the meeting once they have been verified. I do encourage shareholders who have questions to submit them as soon as possible. We encourage shareholders to submit questions now on any items of business. However, you may submit during the meeting. If you have any trouble using the platform, please check the virtual meeting online guide that was distributed with the notice of meeting or contact the help lines shown on the screen. The notice of the meeting has been made available to all members, and with your agreement, I propose to take it as read.
In response to the notice of the meeting, the company has recorded valid proxies nominating Directors and others to represent shareholders. I will advise you of the numbers of vote for each of today's resolution, as each resolution is put to the meeting. I can confirm the minutes of our last Annual General Meeting, held on October 20th, 2025 have been signed as a correct record. Prior to considering item one on today's agenda, I would like to address you briefly, then I will invite Matt Hill, our CEO, to address you as well. On behalf of my fellow Directors, our senior CEO, and management team, I welcome you to the Globe International 2026 Annual General Meeting. 2026 was another strong performance from Globe, underpinned by positive contributions from our three operating regions, Australia, North America, and Europe.
Reflecting the company's strong financial position and our confidence in our future, we were pleased to announce a significant final dividend for FY 2026, returning AUD 5.4 million to shareholders. Globe has built a reputation for over more than 40 years as a pioneer at the intersection of boardsports, street fashion, outdoor, and workwear. Throughout our history, we have successfully adapted our brand portfolio, expanded market share, and grown strategically across diverse demographics and customer segments. This ability to adapt while remaining true to who we are continues to demonstrate the long-term resilience of the business. Globe remains proudly founder-led and guided by the principles upon which the company was established. We remain committed to staying true to our roots, remaining hardcore, and continually adapting as the world around us evolves. Our CEO, Matt Hill, will provide more insight into the strategic initiatives behind the company's FY 2026 performance.
I'd like to thank my fellow Directors, Peter and Stephen Hill, our CEO, Matt Hill, our CFO, Karen Browne, our Company Secretary, Samantha Cook, and our senior management team and our more than 200 employees around the world for their dedication, energy, and passion. I would also like to acknowledge and thank our customers and shareholders for their continued support of Globe. It has been another year of progress for the company, and I look forward to continuing the journey with you. I also look forward to connecting with many of you today or on any other occasions when we meet. With that, I'll now hand you over to Matt Hill.
Thanks, Harry, and hello, everyone. Globe International Limited delivered another successful year for shareholders in 2026 following the repositioning of our brand mix and a restructuring of our European operations in the prior year. By the end of the 2026 financial year, we saw the benefits of these strategic initiatives with growth in our key global brands, FXD, Salty Crew, and Globe, while laying the platform for future growth with our emerging brands. We saw all three geographic regions in Australia, North America, and Europe contribute positively to the group results. This delivered underlying revenue growth, strong bottom-line profit improvement through higher margin brand sales, and most importantly, an increase in dividend returns to shareholders. By the end of the year, the company delivered improved results with foundation for further growth in the coming years.
Despite tough and volatile geopolitical conditions in retail markets, the company posted revenue of AUD 206.4 million and EBIT of AUD 16.6 million, which was up 13% over the prior year while maintaining a robust balance sheet, strong cash reserves, and minimal debt. This enabled the return of dividends totaling AUD 0.23 per share as related to the 2026 fiscal year, which represented an increase of 15% over the prior year. With this return, the company continued its unbroken 11 years along track record of consecutive dividends and continued to celebrate our high-performing dividend yields, significantly outperforming the S&P/ASX 200 average return for 2026. From a brand perspective, we moved our brand focus toward our global core brands that offer high margins, high revenue growth potential, and global scalability. FXD continued to dominate the Australian workwear market, with FXD Footwear growth being a highlight in the region.
FXD furthered its North American expansion strategy with new products introduced into the market and strong direct-to-consumer growth in the region. Salty Crew saw expanded technical product lines, growth in the women's category, as well as significant regional expansion in Europe. Finally, of our core brands, Globe Footwear had a very strong growth year alongside a stabilization in the skateboard hardgoods market. At the same time as we focused and grew the core brands, we continued to invest in emerging brands. Emerging brands such as x/dmg, Ritual Vision, and S/DOUBLE brought revenue growth and exciting new market opportunities in the workwear, eyewear, and streetwear markets, all seeding possible future growth opportunities. Around the world, regionally, we saw positive contributions from all three of our major operational bases in Australia, North America, and Europe.
Our Australian and North American divisions continued to be the revenue and EBIT engines for the group, driven primarily by FXD and Salty Crew respectively. Meanwhile, our European division posted an excellent turnaround with revenue and EBIT growth up 19% and 312% on the prior calendar period, driven by strong brand growth in Salty Crew and Globe in the European region. 2026 is a significant year in the company's history. It marks the 50th anniversary of our company's founding when Peter and Stephen Hill first embarked on the venture of marketing the then underground subculture of skateboarding to Australia and the quest to never get a real job. Over the ensuing decades, we've evolved to become global brand leaders and builders in skate and surf, workwear, outdoor, as well as street fashion markets.
While our heritage is uniquely Australian, today we are a global company with international operations in Australia, North America, Europe, and China. To mark the 50th anniversary, a new book, "Hardcore: 50 Years of Skateboarding in Australia" has been released. The book chronicles Globe International's contribution to developing Australian skateboarding and the expansion of that success internationally. It's an Australian success story and a legacy for which company shareholders, employees, and the thousands of contributors to all our brands, events, and initiatives over the decades can be extremely proud. Today, the entrepreneurial spirit that Peter and Stephen embedded in our business continues. With this spirit, we continue developing global brands of scale with well-thought-out strategies to battle obstacles in the market and look for innovations to grow. We still have a passion to source new opportunities and launch emerging brands to continue the evolution of our company.
Globe International has a track record of longevity, financial robustness, returns to shareholders, and most of all, maintaining fun, creativity, and a desire to break convention. These are all cornerstone foundations of our business that give us the drive, strength, curiosity, and passion to successfully carry us forward into the future. Looking ahead to the current financial year, retail environments are challenging, but our brands are holding up well. In the first quarter of FY 2027, our core brands continued to perform well against the market competitors, and the company has maintained solid profitability and financial stability for the period. As always, we expect our first half revenue to be lower than the second half due to seasonality of our sales between the two halves. But at this stage, expect the year to deliver revenue and profit growth while continuing solid dividend returns to shareholders.
In closing, I'd like to thank our Globe staff, the Board, and the senior management team. Our five decades of navigating an ever-changing market and global landscape can first and foremost be attributed to our committed Globe teams who tirelessly work together with shared camaraderie and vision and always go that bit further for our brands and to ensure the company's success. Finally, I'd like to thank you, the shareholders. Thanks for your continued support of Globe International and belief in our brands, and we look forward to delivering further growth and returns in the coming year. Thank you.
Thank you, Matt. I'll now move forward to the more formal business of the meeting. The first item on the agenda is to receive and consider the financial report, including the financial statements and Directors' Declaration for the year ended 30th of June 2026, and the related Directors' Report and Auditors' Report. As previously noted, our auditor, PwC, is represented at the meeting today by Audit Partner Mr. David Patterson. Mr. Patterson has undertaken to respond to any questions relevant to the conduct of the audit, the preparation and content of the audit report, accounting policies adopted by the company in relation to the preparation of the financial statements, and the independence of the auditors in relation to the conduct of the audit. Please ensure you restrict any questions of the auditor solely to these matters. Moderator, are there any questions for Mr. Patterson?
There are no questions on the phone line at this time.
There are no questions.
There being no questions for the auditor, we will move on to the questions regarding the financial report, the directors' report, or the financial performance of the company. Moderator, are there any questions?
There are no questions on the phone line at this time.
There are no questions.
There being no questions, I note the financial report for the FY 2026 financial year has been received and considered. I will now proceed to the next part of the meeting relating to resolutions. Resolution number one, the remuneration report. The next item of business, being the resolution number one, concerns the adoption of the remuneration report contained in the directors' report. The vote on this resolution is advisory only and does not bind directors or the company. I would like to note that under the Corporations Act, all key management personnel and closely related parties are pro-
Pardon me, this is the conference operator. We have temporarily lost connection with the speaker line. Please continue to hold and the conference will recommence shortly.
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Can we get back to the time? We've got no music.
Pardon me. Thank you. Thank you for holding. The conference will now recommence.
Apologies for that break. I'll now proceed to the next part of the meeting relating to the resolutions. Resolution number one, the remuneration report. The next item of business being Resolution number one, concerns the adoption of the remuneration report contained in the Directors' Report. The vote on this resolution is advisory only and does not bind the Directors or the company. I'd like to note that under the Corporations Act, all key management personnel and closely related parties are prevented from voting on this resolution. With over 70% of Globe shares being held by its founding Directors and senior management, this means that just under 30% of Globe shareholders are eligible to vote on this resolution regarding the remuneration report. This resolution only requires more than 25% of eligible shareholders to vote against the adoption of the remuneration report in order to trigger Resolution 3, the spill resolution.
Based on the number of shareholders who have voted by proxy, overwhelmingly, shareholders were in favor of the remuneration report, with over 28 shareholders voting in favor, whereas only nine voted against the resolution. However, as votes are determined on a poll, it only takes a small number of shareholders who hold larger parcels to vote against the resolution to trigger the spill resolution. Moderator, are there any questions in relation to the remuneration report?
There are no questions on the phone line at this time.
Yeah, we have one question in relation to the remuneration report. The question comes from Mr. Stephen Mayne.
Has our largest minority shareholder, Solly Lew, voted by proxy and triggered yet another spill meeting by voting his 5.9% stake against the remuneration report, knowing that the Hill family are unable to vote their combined nearly 70%? Over the years, how many times have we suffered a second strike and run a spill AGM? Are you aware of any other company which has had so many remuneration spill meetings? Have we ever had any communications with Mr. Lew during the decade that he has been doing this? Do you know why he keeps doing it?
Peter Hill, I will answer that because it does go into the past decades where I was present and the Chair wasn't. Look, we assume that firstly, Mr. Lew has voted to trigger the spill. That's his prerogative. He's an independent shareholder, and we respect his right. We cannot comment to the extent that he knows what that vote entails. Pretty savvy guy, I am sure he does. We do not take that personally. We have had spill meetings several times. I cannot recall the exact number, but if that's important, it would be contained in all of the information on the website.
We do not really follow other companies and their remuneration reports, so we cannot comment of any comparisons of other companies. Again, a lot of these questions are really for Mr. Lew, what his motives are. Again, we respect his rights. Over the decades, we've had very little contact with Mr. Lew. He's a busy guy, and we didn't expect to have a lot of contact with him.
Are there any further questions?
There are no further questions.
There being no further questions, I will move to the proxy results for this resolution. Proxies received for this resolution are 1,308,184 votes in favor, 3,425,308 votes against. 5,000 votes left open nominating the Chairman. I advise that I intend voting all open proxies nominating the Chairman for the resolution. You may now vote online. Please select for, against, or abstain for the Resolution 1 on the electronic voting card. Voting will remain open for five minutes after the adjournment of the meeting. I will now move to the next item of business. Resolution 2, re-election of Mr. Harry Hodge. The second item of business is Resolution 2, concerning the re-election of Director of Globe International in accordance with the company's constitution.
As Resolution 2 concerns my re-election, I'll temporarily step down as Chair of the meeting and invite Mr. Peter Hill to chair the meeting.
Thanks, Harry. The resolution is as follows. That Mr. Harry Hodge should retire by rotation in accordance with Article 64 of the company's constitution and being eligible, be re-elected as a Director of the company. The Directors recommend that Mr. Harry Hodge be re-elected. Moderator, are there any questions in relation to the re-election of Mr. Harry Hodge?
Yes, we have one question. The question is from Stephen Mayne.
Thank you to independent Chair, Harry Hodge, for completing his first three-year term on the board and for offering himself up for the second three-year term. Is he committed to serving a full three-year term? How many of our 838 shareholders voted in favor of his election by proxy, and did this include Mr. Lew? As the independent Chair, has he attempted to engage with our largest independent shareholder? Also, could Harry please summarize the three major changes he has brought to Globe as Chair over the past three years?
I will direct that question to Harry because it mostly relates to his personal motivation and experience.
Thank you, Stephen. Yes, I am very happy to continue as Chairman for the next three years. Sorry, what was the question again, Peter?
I suppose your three-year term.
Yep
How many shareholders have voted in favor?
I believe I do not have the number right in front of me, but I believe the majority of shareholders voted in favor, close to 85%-90% for my re-election. What is the most important? I think what I brought to the company is my many years of experience in the action sports industry with the expertise and experience and working closely. I have known the Hill brothers for many, many years and working on the Globe brand strategies, the European turnaround, the improved product mix to a more stable Globe apparel brand. I have not had any real communications with independent shareholders. Peter, back to you.
Are there any further questions?
There are no further questions.
There being no further questions, I will move to the proxy results for this resolution. Proxies received for this resolution are 30,975,528 votes in favor, 3,409,339 votes against. 12,072 votes left open nominating the Chairman. I advise that I intend voting all the open proxies nominating the Chairman for the resolution. You may now vote online. Please select either for, against, or abstain for Resolution 2 on the electronic voting card. Voting will remain open for five minutes after the adjournment of the meeting. I now hand back the chair to Harry Hodge.
Thank you, Peter. Resolution number three, conditional spill resolution. The final item of business on the agenda is the spill resolution. This resolution is only put to the meeting if more than 25% of the votes cast in respect to item two are cast against the adoption of the remuneration report. As the proxy position at the start of this meeting confirms that over 25% of the votes received were cast against item two, I will now put the spill resolution to the meeting. The resolution is as follows, that subject to and conditional on at least 25% of the votes validly cast on Resolution 1 being cast against the adoption of the company's remuneration report for the year ended June 30, 2026. An extraordinary general meeting of the company's spill meeting will be held within 90 days of the passing of this resolution.
All directors in office when the director's report for the year ended 30 June 2026 was approved, who will remain in office at the time of the spill meeting, ceased to hold office immediately before the end of the spill meeting, and resolutions to appoint persons to offices that will be vacated immediately before the end of the spill meeting may be put to the vote at the spill meeting. Shareholders will note that if the spill resolution is passed, the directors have decided to convene a spill meeting after the conclusion of the AGM today at 12:00 P.M. Moderator, are there any questions in relation to the conditional spill meeting?
There are no questions on the phone line.
There are no questions.
There being no further questions, I will move to the proxy results for this resolution. Proxies received for this resolution are 3,416,989 votes in favor, 1,271,293 votes against, and 34,072 votes left open nominating the chairman. I advise that I intend voting all proxies nominating the chairman against the resolution. You may now vote online. Please select for, against, or abstain for Resolution 3 on the electronic voting card. Once finalized, shortly after this meeting, the results of the online polls conducted today will be lodged with the ASX. This concludes the formal business of the meeting, but before closing the meeting, I would like to address any general business questions. Moderator, are there any general business questions?
There are no questions on the phone line.
Yes, we have several general business questions. The first general business question is from Mr. Stephen Mayne.
"Congratulations on your 50th birthday. As our largest minority shareholder, Solly Lew, passed on his congratulations. Could the two Hill brothers who serve as executive directors each both comment on what they regard as the three most important decisions the company made over that 50-year journey in delivering our impressive long-term performance?
I'll answer that question. Thanks, I appreciate the congratulations there. As answered before, we haven't been in communication with Mr. Lew. I'm sure he's got more important things to do, which is understandable. Look, I think the most important decisions we've made in the past are mostly in the transitioning of the business, moving firstly in the late 80s as a distributor into a manufacturer of apparel. Then taking those brands, I would say secondly, globally and setting up operations in Europe and America, making for a truly international story from a local story.
Then lastly, I think, and more recently, transitioning to a more stable with a higher glass ceiling strategy of workwear and outdoor wear, which is our next big transition. So I would say they're the three most significant decisions which have turned into strategies. Look, we can always do better, but I appreciate that you characterize it as impressive long-term performance, and that's what we're trying to do.
Thank you, Peter. Moderator, are there any further questions?
Yes, we have two further questions. The first question is from Stephen Mayne.
"How many audit tenders have we run during PwC's 23-year run as auditor? When are we likely to run an audit tender?
I'll hand you over to Karen Browne, our CFO.
Thank you. I've only been in the role for three years, so I can really only comment directly on the last three years, in which no official tender process was undertaken. Upon the last rotation of the PwC auditor, and upon me joining the company, we did review and engage with a number of different audit firms. However, Mr. Patterson's skills, experience, and ultimately PwC's commercial proposal won out, and for the stability of the business, we elected to remain with PwC for the next three years. We continue to review PwC's performance and whether they're appropriate or not for the company. At this stage, we are very comfortable with PwC as our audit partners.
Thank you, Karen. Moderator, are there any further questions?
Yes, we have one final question from Mr. Stephen Mayne.
A lot of ASX-listed company constitutions prohibit virtual AGMs. What is the history of our constitution allowing for virtual AGMs? Best practice is actually to hold a hybrid AGM with both a physical location and online participation. Will you offer a hybrid next year so that our shareholders can engage in person with the directors if they so desire? Whatever you do, please don't revert to an in-person meeting with no online participation, as that is much worse than a virtual AGM.
Yeah.
Yes, Sam Cook, Company Secretary. Our constitution was amended a couple of years ago to permit virtual meetings. That is available online on our corporate website. Noted, and thank you for the feedback on holding a hybrid AGM. We always try and make AGMs accessible to everybody. At the moment, holding a virtual meeting for us is probably the best way to do so.
Thank you, Sam. Moderator, are there any further questions?
There are no further questions.
There being no further questions or items on the agenda, that concludes the meeting for today. Thank you for your attendance.
[Break]
Good afternoon, ladies and gentlemen. It is now 12:00 P.M., the appointed time for our meeting. My name is Harry Hodge, and I am the Chairman of Globe International Limited. I welcome you to this general meeting, this spill meeting of Globe International Limited, which is being held as a virtual meeting, and thank you for your attendance. I note that a quorum is present, and I declare the meeting open. Before proceeding with the business of the meeting, I would like to introduce my fellow Directors and senior management and senior executives who are joining us from Melbourne and abroad for the meeting today. Peter Hill, Director, Stephen Hill, Director, Chief Executive Officer, Matt Hill, Chief Financial Officer, Karen Browne, and our Company Secretary, Samantha Cook.
As Chairman, it is my intention to conduct an online poll on all resolutions to be put to the meeting using the electronic voting card. I will call on Ms. Julie Stokes of MUFG Market Services to conduct the poll when each of the resolutions is put to the meeting. Shareholders can cast their vote using the electronic voting card received after validating their online registration.
To validate registration, you will be asked to enter your security holder reference number or holder identification number, plus the postcode if you are in Australia or the country if you are outside of Australia. To cast your vote, click the Get Voting Card button. Shareholders can ask questions during the meeting. To ask a question during the meeting, click on Ask a Question button, and from this point, the questions will need to be submitted in writing or verbally by selecting Go to the Webphone Options.
Please note, only shareholders and proxy holders may ask questions in the meeting once they have been verified. I do encourage shareholders who have questions to submit them as soon as possible. If you have any trouble using the platform, please check the online portal guide on Globe's corporate website or contact the helpline shown on screen. The notice of the meeting has been made available to all members, and with your agreement, I propose is taken as read. In response to the notice of the meeting, the company has recorded valid proxies nominating directors and others to represent shareholders. I will advise you of the number of votes for and against each of today's resolutions at the time that each resolution is put to the meeting. I will now move to the formal business of the meeting.
The first item of business being item number one on the notice of the meeting concerns the re-election of Mr. Peter Hill as a Director of Globe International. The resolution is as follows. That Mr. Peter Hill, who will cease to hold office as a Director of the company immediately before the end of this general meeting pursuant to Section 250B of the Corporations Act 2001, being eligible to be re-elected as the Director of the company. I propose that Mr. Peter Hill be re-elected. If there are any discussions or any questions. Is there any discussion or any questions?
There are no questions.
We've received no questions for this resolution. Proxies received for this resolution are 30,828,580 votes in favor, 3,408,433 votes against, and zero votes cast are left open nominating the Chairman. I advise that I intend voting all open proxies nominating the Chairman for the resolution. Thank you. Please now select either for, against, or abstain for resolution one on the electronic voting card. Voting is now concluded, and I'll move to the next item of business. The second item of business being item number two on the notice of meeting, concerns the re-election of Mr. Stephen Hill as a Director of Globe International. The resolution is as follows.
That Mr. Stephen Hill, who will cease to hold office as a Director of the company immediately before the end of this general meeting pursuant to Section 250B(1) of the Corporations Act 2001 Commonwealth, being eligible, be re-elected as a Director of the company. I propose that Mr. Stephen Hill be re-elected. Is there any discussion, or are there any questions?
There are no questions.
We've received no questions for this resolution. Proxies received for this resolution are 13,828,580 votes in favor, 3,408,433 votes against, and zero votes left open nominating the Chairman. I advise I intend voting all open proxies nominating the Chairman for the resolution. Thank you. Now please select for, against, or abstain for resolution two on the electronic voting card. Voting is now concluded, and I'll move to the next item of business. As resolution three concerns my own re-election, I hand the chair to Mr. Peter Hill.
Thanks, Harry. The resolution is as follows, that Mr. Harry Hodge, who ceased to hold office as a Director of the company immediately before the end of this general meeting, pursuant to Section 250B(1) of the Corporations Act 2001 Commonwealth, being eligible to be re-elected as a Director of the company. I propose that Mr. Harry Hodge be re-elected. Are there any discussions or questions?
There are no questions.
It looks we have no questions. We will proceed with the resolution. Proxies received for this resolution are 30,816,508 votes in favor, 3,408,433 votes against, and 12,072 votes left open nominating the Chairman. I advise that I intend voting all the open proxies nominating the Chairman for the resolution. Thank you. Please now select either for, against, or abstain for resolution three on the electronic voting card. Voting is now concluded, and I now hand the chair back to Mr. Harry Hodge.
Thank you, Peter. Based on the proxy positions, where well over 90% of the votes have been cast in favor of each of the resolutions, I can confirm that all three resolutions will be carried and all Directors will be re-elected. The final results of the poll will be announced to the ASX shortly after the conclusion of this meeting. That concludes the business of the meeting, and I now declare the meeting closed. Thank you for your attendance.