Insignia Financial Ltd. (ASX:IFL)

Investor Day 2020

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Nov 30, 2020

Need to come. For out of luck today, it's a fantastic opportunity for us to share some of our strategic pillars with with you, our shareholders or or our analyst community. So very keen to, do a bit of a deep dive into our 3 key priorities and key strategic initiatives. But before doing so, I did want to spend a couple of moments just sitting the the macro landscape. And really, that macro landscape starts with some some principles that that have been, have been a feature of idableness narrative over the past few years. And that is that we see tremendous opportunities and advice led organization and advice led Wealth Management Organization to capitalize on the changing world around us. And that's a world that we're seeing increased per capita wealth. We're seeing an aging population with increasing complexity of needs, and that's certainly not going away anytime soon. And at the same time, and and certainly, as I've discussed, in the context of the MLC transaction, we are seeing structural industry disruption we think is which provides a tremendous opportunity for IWM. Within that context, certainly over the past 18 to 24 months, you've heard me describe the strategic journey for IdahoF across 3 key, sectors being initially to stabilize the business And that's certainly been a key focus and priority over the preceding, 18 to 24 months. Following that, we always saw a transformation phase, which is very much the phase we find ourselves in now, and and executing the transformation phase efficiently and effectively will lead us to the prosperity phase. I I did want to spend a couple of moments just reflecting on what we have achieved during the stabilization phase really since the end of 2018. So it's nearly coming up for 2 years now. We we had a very deliberate focus on resetting our culture and building a purpose led culture. And I think that that served us very well during the early part of this year and certainly during COVID and continues to serve us well. Have put in a tremendous amount of effort into our governance uplift capabilities, across the business broadly, but also specifically in the advice segment And generally, taking a really rigorous view of the kinds of capabilities and the quality of our capabilities as a business, as we look to enter into what is a very deliberate growth phase for the business. In our mind, really, the the 30 June of this year was really sort of the end of the transformation when we really tipped into the end of the stabilization phase, you should say, and we really tipped into the transformation phase. And Probably the key message to note here in transformation, even prior to having completed the P and I transaction prior to having announced MLC, those 3 pillars of transformation being advice 2.0 and above 21 and, and integration were key pillars of our business. And certainly that was with one mind to, to the the P and I, completing the P and I acquisition, which are which we completed earlier this year in February of this year, And the MLC transaction really gives us an opportunity to capitalize and further leverage those strategic pillars, particularly advice 2.0 and a vault 21, which you'll hear more about today. The reason though those pillars and that strategy is very important has to be seen through the context of our industry and our communities that we serve, particularly from a client lens. And I'm I emphasize the client lens because It's important to recognize that as an industry as a wealth management industry, we we, we serve and we beneficiaries of a client journey that begins in the late teens to early twenties when people are entering the workforce, their lives are going through dramatic change over the the following 30 to 40 to 50 years, and sees they've been quite discreet phases of life. And as an industry, our roles support those phases help improve decision making, and obviously help improve the probabilities of people living the lives they want to live. It also needs to be recognized that as an industry, we're focused on on the last 3rd or maybe the last half of that journey, traditionally, in what I would call our traditional advice segment, and certainly, out of work has a leading position in this segment, be it through Shatfall, the high net worth segment, bridges in the mass market or our self licensed, sorry, self employed businesses, throughout the middle there. And you'll hear more from Darren today around how we're looking to transform that traditional advice segment. And that really provides a very key pillar in our continued evolution of particularly to that cohort on the left hand side of the chart that you see there, which is those that have probably been excluded from advice traditionally, But with the evolution of technology and the the scalability of insights and customization, we think there's a tremendous opportunity to continue to increase our relevance in that segment. And certainly with the MLC transaction, I don't believe we'll we'll have a a captive audience or an opportunity of about a million unadvised clients throughout our business. So there there continues to be a tremendous opportunity to to build build the business and build relevance in a broader community. And one of the reasons we are committed and and remain passionate about the role of advice has been reinforced in some research we've undertaken recently, which was completed in in the last month or so. Which was across approximately 13,000, both advise and unadvised clients, but really did reinforce the value of advice. Now the the findings of this research has been consistent with previous research that we ourselves have done or others have done, the fundamentally reinforced the tremendous value that exists in advice and the tremendous value that is a business we can build by making advice more accessible to more people. If I focus on the left hand side there, you'll see some key statistics on just to call out a couple, 95% of people in an advice Chip agreed that receiving advice has given them greater peace of mind financially. So this is more than just having more, more more on your bank balance, this is actually about having a greater peace of mind and being more in control of your own life. 73% say they save more money as a result of receiving advice. Again, this is about changing behaviors. This is about changing people's behaviors through their life. And I think particularly important and and topical, over the past year or so has been that 94% have an understanding of the annual fees they've paid for advice based on several advice documents they receive. There's real clarity of what people are paying and what they receive in return. The right hand side, I think, is really the key message to take away from this slide. Which is what we call the advice dividend. So this is benchmarking those clients that receive advice against the control group of clients that do not receive advice. And and I think what you can see there in every instance, irrespective of whether it's under under fifty years of age, over fifty, mass market, or affluent, in every circumstance, is an advice dividend, I. E. The people who are in receipt of advice and are beneficiaries of advice have a higher well-being across a number of different metrics, as a result of that advice. So we can we know empirically that there is value associated with advice and the value exceeds what people pay for it. And I think through increasing the the reach, of advice, reducing the cost of delivering that advice and monthly more accessible, I think out of what's at the forefront of of actually creating value, not only for the community, but also for the owners of IWAF through an advice led strategy. So just to just to really introduce the set the sessions that we'll follow today, you'll you'll start by hearing from Darren Ware at chief advice officer this morning around, how are we going to make advice more accessible and more cost effective to deliver? That then followed by a session on Evolce 21, which is about reinforcing our our position and our transformation of building a leading proprietary platform one platform across all client cohorts, which we believe is a unique proposition in this market, that really looks to differentiate on service excellence, and we'll wrap up today with a with a, a presentation from, led by Chris Weldon, our chief transformation officer, around how the PNI and MLC integrations will transform the growth potential for either below F, looking to differentiate by having the lower cost to serve in our business, and we think that is a that is a key driver of value for for, the business longer term, as well as the developing trust through outcomes service excellence. So it's about building a reputation, continuing to build a reputation and being at the forefront of our industry. So with that, I want to thank you for your time commitment this morning. And with that, I will hand over to Darren Wirth. Hello, and thank you, Renata. Good morning, everybody. My name is Darren Wirth, and I'm the chief advice officer at I, double o, f. And I wanna thank you, certainly, for your time today. Over the next 30 minutes, it'll be my pleasure to talk you through our strategy and our program of work not only of what we believe the business will look like in 2 years, but more importantly, some of the milestones that we've achieved over the last 18 months as we've integrated the ANZ Wealth Business and the IWF advice businesses together. And our vision is to make financial advice available to many more Australians, in a much more affordable sense, and we can't do that by continuing to build on the past practices. We think the time is now to do something very, very different, and we're quite excited about the opportunity that lies in front of us and we believe we've got a great, team to be able to get this job done. In August this year, we commenced our transformational journey in respect to financial advice. And so we're really talking about making our network to to continue to deliver that quality of advice that they've been known for. But to do it in a more profitable and more sustainable way whilst making advice more engaging for our clients and as I mentioned, more affordable. Now each of those things are not mutually exclusive. What we are doing is we will achieve all of those things cohesively and that's how we believe that we will make advice much more engaging and much more affordable. We know that research indicates that there is a price point for those in this and population that don't currently engage with us. And at the moment, 1 in 5 Australians engage with an adviser. Renato just shared with you some great research about those that are already in the system and how much more comfortable they are from a well-being sense and a financial sense. But what that actually means is 4 and 5 still don't engage with advice. And so there is an opportunity to augment what we're doing today and to allow others to access the great benefits that advise to it. But as I said earlier, you can't do it by, continuing to do what we've done in the past and so we need to look at new things. So the opportunity for ourselves, opportunities for the public and opportunities for shareholders I feel is immense, and I will take you through today how we're going to face into that. We need to embrace new technology new ways of working and new processes, and we will be And other areas that are underway. I'll finish up by painting that picture as to what our business will look like in 2 years. But also really take the time to walk you through the strategy on where we've been in the journey because we have been on this journey for a number of years. And we think the opportunity for I, double Earth is enormous, particularly as the market continues to fragment. But before I do this, I'd like to take you through some of the achievements that we've done. I know some of you will be sitting there thinking, how are they going to integrate the MLC advice business how are they going to take advantage of what this transaction presents? And over many years, I, double f, actually, has a history of successfully acquiring and integrating advice businesses. And we've done it as recently as the 31st October 2018, when the IAA businesses, 700 advisors, 3 AFSLs, was merged with the ANZ, Wealth advise businesses whereby they had also had 700, advisors and 3 agents as well. So the combined businesses 7 licenses and 1400 advisors. And so over the last 18 months, we've been putting these 2 businesses together. We prioritized stabilizing the business. As Renato mentioned, we brought out, we prioritized our investment in insurance and governance, and we've also streamlined the processes and invested heavily in technology. So at the time, we did make the decision to prioritize the movement to a single advice assurance and governance model. And this would lay the foundations for us to transform the business. And it's an important aspect because you cannot run 7 AFs 7 different ways with 7 different processes. And so we made the decision over that 18 month period to actually move to a single assurance and governance framework, and we've actually achieved that. So I'm sitting here today with that successful integration of those two businesses, Both with 700 ARs, both bigger than the opportunity that the MLC advice transaction affords us with 400 AYad, we've actually combined those businesses over a reasonably short period of time. More importantly, but we now have one way of doing things. So in terms of our advice standards, that are the rules if you like that are employed in the owner and operator space, in the self employed partnerships where we partner with self employed planners, the way that we operate and provide advice the way we supervisor monitor our advisors and the way that we ensure that we don't get any repeat of any of the issues that were highlighted in the Royal Commission, We are ensuring that our risk framework is easily identifiable and within the risk tolerance that the organization is set. So we have 7 businesses, but we only want run one advice process. Now how did we do this? We actually achieved this by bringing together the 2 shared services business from idoubleF to traditional and the ANZ, and we brought them together to create a single way of doing things in terms of our enablement functions. So we centralized our research functions, our explant functions, our resources in terms of, our CPD, which is our ongoing education, the way we bring advisors into the business, and the way that we exit advisers out. So all that infrastructure required that we used to have 2 ways of doing things, we now have a single way of doing things. And that's very important as we move into the next opportunity that the MLC transaction affords us because we built the business to be scalable, and like we will with the 1050 community and the GPO community We can bulk AFSLs and bolt other, advisors into our system, but we still only run that single advice process. And that's the or licenses where they can operate at scale and operate in a different segment of the market, but we're doing this in a way that built scales and efficiencies into the model. So we've built a strong network of training and support in terms of our CPD. We've embedded our insurance and governance program, lifted our professional standards. We now have a single model that's been independently assured by an external firm PWC to make sure that we are operating at the required level of the regulator in and around the market. Now we are wearing this as a bit of a badger of honor because we know that those advisors and clients that are operating under our AFS cells are safe. We know that our framework has been rigorously tested and independently assured that it is operating at a standard that we believe is leading the market. To ensure that we don't get any repeats of the ongoing fee revenue issues that were seen in terms of the remediation programs, we were the first to announce a public move to fixed term agreements. And what that is is each each and every year, our advice clients will reauthorize their fees for the advisors. So every year there is a conversation, around the services that they've received, the services that they will receive, and the client reauthorizes those fees. So the remediation programs that we've seen in and around the market, we've adjusted our processes, invested in technology, and changed the way that we're engaging with clients. We believe advice 2.0, the next evolution of advice is about bringing the clients closer to the advice process and giving them confidence and building that trust in and around the advice process. So we've commenced our journey on our we're calling a digital ecosystem. And the reason I'm so excited about the advice opportunities, in terms of the opportunities for both MLC and the new way of doing things is that we're not just building on past processes. We're investing in technology, but we're making sure that the client is the center of all the decisions we make. And we think the work we've done in terms of streamlining the model as I just walked through in terms of our enablement businesses will put us in a position to continue to run a multi advice business, a multi brand strategy, particularly where they operate at different segments of the market but we're going to do this in a sustainable way. On 31st August, we announced changes to support the sustainability in terms of our AFSLs. And each of these 3 pillars need to act cohesively for us to be successful under the advice 2.8. AFS sustainability is really about moving away from the old industry model, where there was cross subsidizations, and product subsidization in the advice AF cells. We've been very public in our decisions to move to making sure that each of our AFS cells, whether it's in the owner operated space or in our partnership spaces, each cover their own costs at a minimum. And in the owner operated for the employed space, we are looking for EBIT of 30% plus. Now for us to ensure that we do that, we had to make some big decisions. And on 31st August, we did announce some big decisions. And now principally behind this, there was a decision to to ensure that we were had a big presence in the owner operated model or traditionally referred to as an employed model. We're not talking about bank employed models, but we're talking about Shadforce, which is a high net worth business that has been operating in that space and has the preeminent brand in that space. We're talking about bridges great relationships in the, in the, in the channel that really is working with those external parties in respect to the credit unions, and we're ensuring that the ongoing services that clients have been promised are delivered But we are talking about doing that at scale, and we're talking about doing it in a different way. In terms of our multi brand strategy in the middle, We're talking about unique value propositions that using technology to remove costs and processes. And the support for a more streamlined deliverable really will mean that we need to be sustainable in the way that we're, operating our AFSLs. There is no opportunity to do client engagement and advisor efficiency if we don't have a sustainable model into the future. And we will have that model, breaking even in terms of our AFSL businesses by the 'twenty one, 'twenty two year as previously communicated. Now we did make some hard decisions, that we communicated to the market back in August, and these changes reflect the need to move to a new model. The above the line decisions there are about the structural changes that we make, streamlining our resources and the below the line decisions there reflect the decisions that we made, in impacting on the AFSLs. Combined, these decisions will extract year on year from the 21, 22 year, as previously communicated, $10,000,000 worth of costs out of the advice our businesses. And it's important for us now for me to walk you through these. You can see that when I talk about the structure, Previously, we had our multi brands, which is on the left hand side here. With the big decisions that we've made, ah, in terms of bridges, We made decisions to sit it side by side with Shadforce, but operating the mass market as a wholly owned and operated AFSill. Presently, it's combined, owner operated, and operates in the self employed. And so from the 1st October, we've been working with those people that had self employed businesses under the bridge bridges brand, we've been working with them to transition to one of our other self employed brands, which appear below from the 1st September. That body of work will be finished at or around 31st March next year. And what that will mean is then we'll have 2 owner operated brands high net worth space, Shagforce, a great business that's been operating that space for a number of years, and a mass market opportunity in terms of bridges. What we're going to do here is ensure that we focus on delivering high quality, transformed advice in a sustainable way. We are aiming for EBIT's, over 30% as indicated by Renato, and these combined entities will be generating over $90,000,000 with the recurring fees from authorized compliance clients. So a huge opportunity to do something different that we've been doing in the owner operator model but more importantly to do it sustainably and at scale. The opportunity to bring in MLC advice affords us another 100 authorized representatives along with the ongoing revenue, and we will be able to plug it into that owner operated model. And we are excited about that opportunity if approved by the regulators that that transaction affords us. In terms of the self employed market, you can see there that our previously, we have multiple brands. Now when we were transforming our businesses, we needed to ask ourselves are we comfortable with a multi brand strategy? We've got Bridges, Lonza, Millennium 3, Consultant, RI, and FSP. We make the decision that we are absolutely committed to a multi brand strategy. Why? Simply because it represents particularly in the self employed space, the community aspect of self employed partnership model. And each of these businesses have around about 200 authorized representatives with the exception of financial services partner, which I'll talk about in a minute. And what we're doing here is we are respecting the communities and the brands and allowing those advisors to partner with us, as I said, but behind the scenes, we are running a single advice model. And so we are committed to multi brand, but a single approach, and that's how we're going to make our model more sustainable. When we looked at running this more sustainably, we actually asked ourselves, is there 2 natural groups that these licenses could sit together? And the answer to that was yes. So from the 1st September, we've reorganized the front, of our business in terms of that self employed and we've gone into 2 groups, and we've collapsed the 5 AFS cells down to 2 distinct groups. The first group is Lonza Alliances, and Millennium 3. Each of these have a significant third party working in and around their business. In Lonestar, its accountant, they're very big in the accounting space. Millennium 3, the DNA was in and around general insurance brokers. And alliances is where we're partnering and providing services for those businesses to have their own AFSL. And so we've grouped those businesses together and reorganized it to operate under 1 CEO. And on the other side, in terms RI advice and consultant, more in that holistic advice space, again, we've moved 2 separate businesses to be operating under a single CEO. We're comfortable that you those businesses were operating at scale and has a large brand presence, and we did at that time critically evaluate our other licenses, and we did make the decision to close the AFSL in terms of FSP, and help those advisers transition to another of the AFS cells. And again, that work will be complete on or around the 31st March next year. In all of those transitions out of Bridges and FSPs, they're at exactly where we thought they'd be and we're having great in working with those planners to move them to another license. So in terms of what we've actually closed, we are closing the FSP, AFSL, and we've also completed previously the closure of the elders AFSL. And so for us, this is our more streamlined business, which gives us a great opportunity in that owner operated space but ensures in that self employed space that we're moving towards covering all the costs in those businesses from the 21, 22 year, specifically in respect to those businesses that came across from ANZ which obviously, came across with, running at or around about a $20,000,000 loss. And as I said, this is our pathway to ensuring they break even. So they're the structural changes that we made, and they're the changes that we really now affords us the opportunity to concentrate on the other 2 pillars. We don't get that luxury of focusing on the other 2 pillars without making these structural changes. And as I said, collectively, each of the 3 pillars, it's important that we implement and, actually have the strategy for each 3s. So the other 2 important aspects here is about client engagement and advisor efficiency. And I'm really hoping by the end of this presentation, you share my enthusiasm for just why we believe that we can make this work. In terms of client engagement and advisor efficiency, I think now is the opportunity where technology is really catching up to where the ideas, we believe now that the technology that underpins advice can be used in conjunction with delivering the advice by a human in terms of either our employed model or our self employed partnership space. And if that human element with technology that really is going to make a difference. So what we're talking about here is we've got a program of work In terms of our Transform, where we critically looked at the way that advice was being prepared. Now IWF has a history through client first, of critically evaluating the way processes sit behind and lead to a client outcome. And so we're using those philosophies to actually have a look at the way advice has been provided in the past and how we can improve the production of advice. It's fair to say since the royal commission, with the compliance additions that there's been a increase in the time it takes to prepare and document advice under a best interest 2.0 is we're looking to automate many of those processes by using technology, and we made a big play on the 31st August when we acquired a 100% of the shares in our, wealth central who was a partner of ours, a fintech that we've been working with for 4 years, and we acquired all that systems, and it is now a proprietary system that will only be available to our advisors, be they self employed in our partnership space, working with us with their own license or in our owned and operated channels. And what we've come up with is what we believe is what we're calling the Ida Life advice playbook which is a way to run your business, which is client enhancing, much more efficient and offers EBITs of 30%, and that is irrespective of which channel you are operating in. And this is the exciting bit for mine. This is how we are going to make advice work. So let's have a look at the I double f advice, pro book. You can go through this slide yourself. I'm not going to walk through it. It's about goals based advice. It's about using reengineer processes, and I think that's very important. We're not using technology over old dated processes, we're critically looking at ways that we can improve, decline experience, improve the exchange of data, The advice process is very dependent upon the relationship an adviser has with a client and the efficient exchange of data. Particularly around the client's current circumstances. And I'll walk you through a process shortly on just how much, time we've been able to save by using this technology and looking at the processes. So the enhanced client experience is about taking out inefficient processes making advice more affordable and we believe by doing that, we can grow the pie for advice. And that is very important point. We're not talking about re engineering the way that advice is currently being provided in that 1 in 5 that engage with it. We are generally talking about growing the advice. Hi. The demand for advice is there. We believe that we can make it more affordable and actually more appealing to a larger segment of the Australian, public. So the enhanced client experience and you'll see in the middle there, the important bit about this is it has in built smarts. So the guard rails required to manage risks is actually being built into the technology. And so that mitigate risks to ensure, again, no remediation programs into the future, and it's underpinned by technology. And you'll see a number of our technology partners there in terms of iris, WealthCentral, which I'll take you through in a second, but also the IWS platforms and the other, platforms that we utilize in the advice space as well. So to strip out cost, efficiencies, and, any of the waste, we're looking to simplify and digitize the client experience and automate processes, allowing advisors to focus on the human elements So we are embracing the robo aspects that the technology provides, but we believe that's best being delivered by, humans in terms of those traits such as empathy, understanding, and the, traits that that value of advice research has reinforced that are highly regarded by the consumers of advice. So on 31st August, we talked about well central and we acquired it. And we are very excited about the opportunity that this presents us. And again, in our demonstrations of the power of the software with our MLC Advisors, Chris will take you through, where we currently stand in respect to that. But what I can share with you is that this is a game changer. This is what's going to make us different to others. There are software out there. I will not run away from that. I believe this is the most integrated software with the most highly engaged client experience from both prospecting through to the review process and for us, it's a game changer. So I'm actually going to talk you through some of the opportunity this affords us. So the the opportunity is for our advisors in our employee channels, which will be implementing this right across the bridges and the Shared Force, own an occupied space, but also in that self employed space. And again, we only for those businesses Tubes a partner with us given now that it's a proprietary system. We've been working with existing external vendor for 4 years, and we will continue our journey to evolve this. The way we build this software through our innovation lab is in, in my eyes unique. Why? We're taking input from advisors. We're observing focus groups from clients. We're making sure that we're building stuff that works, demystifying advice, bringing clients closer to the process, taking, if you're like the spooky magic out of advice. And what we're doing here is we're really recognizing that there is an opportunity for individuals that go through the advice process to understand the value advice much earlier on in the process. And so this is why we believe it's game changing, not just for the efficiencies, but for their enhanced client experience. So what we've got here is just the three segments, and I'll talk to you about the experience that our clients get. For those of you on the line that might want to have a play around with this software, I encourage you to go online to idoubles.com and go in our community page. This is where we provided probano advice right across our networks and we delivered over a 1000 hours of pro bono advice during COVID using the software and our networks of advisers, both employed and occupied and also the self employed. You can go in there and have a play around with the wealth, with the wealth central system and get your own wealth report. So in this prospecting and engagement phase, what this is about is removing the inefficiencies of exchanging information. When we were designing this a number of years ago, we were observing advisors through, sorry, clients. And it was a cumbersome process to exchange information right up front. It was very paper based. It often was dated. And so what we've designed here is an online portal that the client can go in and update and provide an exchange information with their clients during the prospecting and engagement stage. It's online, cyber secured as you would expect, but what it actually does is it actually provides information back to the clients. So as they put information into the system, the name where they live, how many dependents they've got, their superannuation, their retirement savings goal be it short or, other goals short, medium or long term, it actually enables them to put that in. It's digitized, if you and it's actually all icon driven. And what they can actually do is generate their own wealth report. Now what this actually does is it's connected to census data, it's connected to RP data in terms of values of ours, and it takes imagery. It also provides them with a snapshot based upon what information they put in under general advice on how advice may actually help them. It might be about protecting their loved ones in the event of the of an event. It might be about savings, it might be about any other thing to do with cash flow management. And what this actually does and the unique thing is they can print this off It's a bound and glossy brochure that they can take away and have as part of the process without any cost. In exchange, what we've got is a more efficient way of updating the information through the portal, but whether they proceed with us or not, I, double o, F, has given them or one of our adviser partners has given them an insight to the advice process in an efficient way for free. And whether they come back to us or proceed straight away, we believe that's a much more enhanced, impression, and what we're doing here is try and improve and gain on the trust deficit there is in respect to advice. We wanna show them that advice has a positive impact, both in terms of their wealth and their health. And this is our way of doing that, and this advice portal enables us to do that. In the middle there, this is really what it's about. So the information automatically flows from the prospect in terms of the engagement. So the client's got a much more engaging, experience, but in the middle, when they come into that, meeting with their adviser, that first meeting, often it's about the exchange of information. And from an advisers aspect, they spend the first 45 minutes of that first meeting in many instances, making sure and validating the information so that they can go away and deliver a SOA. Which really covers off where advice and what strategies they are going to implement. The new way of doing it through the Wealth Central Technology in the middle around this discovery and advice phase. What this enables us to do based upon the information that's being put in by the client and augmented by the adviser it will instantaneously model in front of the client strategies, in respect to how they can invest their monies, be it superannuation or non renuation in different tax structures that we just spoke about, but also how they link it to the goals that they put into the World Central Software. And what we're doing in this middle by instantaneously modeling it, the adviser is brought into the process much earlier It's much more engaging, but more importantly, the value of advice is actually up on the screen or on a computer in front of them and there. They can change the model. So for instance, there's generally this trade off between longevity, and income, or how long will my money last versus how much money can I spend? And what you can do through the software is you can actually change the different examples on how much money you can have or whether you want to lead the legacy, and the advisor can model this, and more importantly, the client can actually see the trade offs. And so this for us is the new way to show the advisors, so for the advisors to show the clients how advice can be benefit. And then there's the ongoing review stage. So everything we do now is through this software. And for us, it's a game changer. It's a real efficient way to delivering an enhanced client experience, more importantly, but making sure that the client is brought into the process much easier. So just to give you an example here, how much efficiency are we talking about here, Darren, how are you going to make the advice delivered? On the top, you can work through this. This is the old processes on typically how an advice process works. Sit down your clients, update the information, key the information into a system, go away and do some modeling. You can follow that yourself. Down the bottom is that process that I just spoke about. Online digitized portal with giving real time information back to the client instantaneously. The adviser doesn't need to double tear the information is, the system will model the different strategies. We've actually modeled in one of our AFS cells using Salesforce. We estimate that there is 1.5 hours per review being saved by the use of these enhanced processes. So these client first processes are taking out an hour a half of clunky processes and automated these. Just in Shadforce, So just in one of our eye for cells and remember, we have 7, and we're about to, hopefully, with the, the approval of the regulators add the MLC, GPL 1050 and MLC advice brands into this community. So just in one channel, who do 10,000 reviews a year, we believe that we will save over 2000 business days of efficiencies. Now that can be used, in a number of ways to grow the demand for advice or to continue to to, to improve the EBITs that we're generating right across the industry. But we're doing this not at the expense of the client, we're doing it in a harmonized process, making sure the client is experience is 1st rate. And so this is where I get really excited about advice 2.0. We've spoken about the efficiencies, but we're now we're talking about the real client experience of making advice more affordable, more accessible, but also more engaging. Now that is a significant saving in NESONE's language. But that's the tip of the iceberg. If we actually have a look at this, that's 7 stage sorry, 6 stages of the advice process. We're just talking about how the system has improved one phase. We've got other phases that we'll go through using that client first, processes to improve everything that we've got here. And for mine, this is really the exciting part and what we'll be able to do. So just to wrap up there, in terms of what our business will look like in, in a couple of years' time, we see that we want to be a successful advice led Wealth Management organization. That means that we will have representation in each of the three key segments of the market. Our professional services owned and operated, where we'll be operating the Shadforce, the Bridges, brands, and we'll be putting MLC advice in there. This will give us the opportunity to run a 300 professional services authorized representatives in that owner and operator space are generating EBITS above 30%. In that middle, we will have breakeven AFs from the 2122 year, covering the costs and making sure our partnerships in that space, where we currently have about a 1000 advisors and we will grow that with the 1050 community and the GPL community to about 1300, we'll make sure that we cover costs. But more importantly, we're going to make sure that our technology investment is scalable right across our enablement business and our investment in technology. And that's why it's important that we partner in those self employed spaces to make sure that we can deflect our costs over a much larger number of advisors. And scale does matter in the advice space. And in that third space, it's about self self licenses. So we do have a business there called Ottawa alliances where we are actually delivering, advice services to those with our own license. And if we did move down, to a scenario where the government said everybody goes self licensed, we would simply pivot our business out of the self employed with everybody, having their own license, we would become a service business. So we would have our own own own and operated and we would have our self licensed businesses with all those advisors in there. So we are setting our business up to manage any regulatory risk, but more importantly, that's how a business will operate over the next 2 years. So thank you for your, attention, today, and I hope I've given you and got you excited about the opportunity about the advice, in particular, in respect to the wealth central, the technology that we feel will marry up with the delivery of advice and change the way that advice will be delivered to more Australians in a more affordable way. But rather than me actually, continue that, I just wanna share with you a video from some of our advisors that have been the early adopters of this technology. On this problem. It's a very powerful tool that the clients get an immediate picture of the current scenario. And then once you add in some current strategies that you'll talk to the client about in the first meeting, the client's eyes to slide up. They see the opportunities in regards to setting their goals and how they're gonna achieve those in real terms. It's really you wanna do the the goals based conversation, and that's the thing that you wanna focus on. You don't wanna focus on the asset liabilities and the dollar amounts. It's really the core, conversation that we're going to be looking and improving now. We have data correct. Where I'm using it the most is the projection feature and goal setting feature. So I love those tools. I love being able to have bring a I I call it bring a financial plan to life. So the production model's problem. It's a very powerful tool that the clients get an immediate picture of the current scenario, And then once you add in some current strategies that you'll talk to the client about in the first meeting, the client's eyes to swipe up. That they see the opportunities in regards to setting their goals and how they're gonna choose those in real terms. It's really you wanna do the the goals based conversation, and that's the thing that you wanna focus on. You don't wanna focus on the asset liabilities and the dollar amounts. Is really the core, conversation that we're really looking to improving now. We have data correct. Where I'm using it the most is, the projection feature and goal setting feature. So I love those tools. I love being able to have bring a I call it bringing a financial plan to life. So a financial plan is not a hundred page document that sits in the drawer. That's not actually not a financial plan. This actually brings the plan to life. Thanks, Rachel. Thank you, Darren. And, thank you to everybody who has ask questions or given feedback. Now I do note that on the external stream, some slides on the video, they are appearing particularly blurry there is a high res PDF version available at the full presentation deck on the ASX, and that has links to high res versions of the videos as well for you to follow along with. Now just some questions that have come through, for Darren. So a couple from Andre Sednick as Morgan Stanley. Darren, Our owned advice EBIT margins scalable, I. E. Can EBIT margins approach 35% if more financial advisers take be owned by IOS model. Thank you for that, for that question. Look, for for us with the technology, I wouldn't like to to restrain ourselves and say 30% is is the number. I don't know what the future number is, but we do know that it is scalable in terms of adding on, other AFS cells like the with the MLC advice, and we can certainly scale it right across. But into the future, we, you know, technology the way technology is going, we think there is opportunities, but I don't know what those numbers may be. Great. 2nd one, Veronica. How will the self employed financial advisors deliver suitable returns for item and web shareholders. What changes are required along the value change to do this? Yeah. Another good question there So we've been very vocal in our move to, equalizing the risk, if you like, that the AFS cells have and the financial rewards. So the bottom line is the advisers in that self employed space, there is a rewriting in terms of how much they pay as the old subsidies move out and we will wanna the first ones to move away from that. So the reality is we've already opened up conversations with our advisers. There is recognition that they will be paying more for the services they traditionally get from us. The way that we're actually doing this, but and this comes back to some of those structural changes. A lazy way for us would have been just to say, well, x dollars, you need to pay x dollars more. But what we're actually doing is we're looking at the way that we're structured and making sure that we are an efficient partner in terms of our structure so that when we, go back and ask for more money and not only delivering more services like the Wealth Central solution, we are absolutely crystal clear on how efficient we're running our business. And so that exchange and that partnership model, is where we're going exchange fair value, but the advisors will need and will be contributing more for those, services that they had in the past. Great. Thanks, Darren. A question from Matt Donger at BAML. Why have some of your fast growing competitors? For example, net wealth and hope being so successful as winning new members and how will I, the OS advisors win new members? So I might deflect that one, there, Rachel, that that is not necessarily, an advice related question. I think that might be more suited to the, the next session in terms of evolve for Mark to answer. Both of those businesses don't run advice businesses. Yeah. Good point. A couple of questions from Nick Bridges at Values. Target 30 percent EBIT margin for salary device. What EBIT margin does Shabbforth currently achieve? What is the rough timeline for 30% margin for salary device? Yeah. Look, on both of those, the combined entities, the combined owned and operated entities are achieving that 30% EBIT. So across bridges and across Shadforce, we currently got them running, at that EBIT in terms of that target as well. So The time for that is now. Thank you, Darren. Another one from Nick Burgess. It appears your competitors are not just focused on advice or advisors. Do you see an opportunity to grow advisor numbers over time post MLC to well north of 2000? So I said I need 2 parts. First of all, I'm glad everybody else has taken their eyes off the advice base because it gives us an opportunity to, 1, reaffirm our commitment, and, again, I think the advice, research that we've just done and the feedback we're getting, we will be the voice of advice because we genuinely feel it's a service that the community will benefit from, and we can balance up the shareholders risks, in terms of delivering that. In terms of out and out advisor numbers, My focus is not necessarily on adviser numbers. What I'm focusing on over the next 2 years is making sure that the businesses that we have are as efficient as possible. So for instance, I'd be more than happy to have, half the number of advisers that are twice as efficient. Because I've then got a lower risk base to grow the, growth that will act I'll actually get off that. So I'm not targeting 2000 we're really targeting efficiencies. However, based upon our experiences with communicating with GPL and communicating with 1050 and others in the market we seem to be resonating with those external advisors, particularly around the technology and the investment in it. And so I think we'll get natural growth as the market continues fragment. And so 2000 would not be out of our reach, but at this stage, we are focusing on that efficient delivery. Great. Thanks, Darren. Just in the interest of time, I'll ask another question, but Darren, you will be back for the all presented Q and A at the end of the 3rd session. So we'll we'll save some questions for you to respond to to them. So the final question for this session, which comes from James Court Jukes, for the self employed model, you say you will reprice to remove cross subsidization and to recognize the risk premium as the AFSL owner. Yet, the self employed model targets to break even do you think you need to raise the risk premium even more? Are the risks? We might stop there and we'll ask it in two parts. Yeah. Sure. So the answer to the question is yes. I don't think this will be our last move. So we're doing a a reset. Obviously breakeven is our first point, which we said we'd get in the 21, 22 years. That's our first challenge. By then, we'll continue to evolve the technology. But ultimately, we would be looking for a return in that segment as well. That's just in the AFS cells. The other point that, is important is the reason it's so important for us to have a presence in that self employed is that we any investments we make, any enablement business that we've got, the way that we scale out our business, we'll go across a much larger pool of advisors. And so breakeven's the first one. Ultimately, but we do wanna get a a return. I don't know what that return will be. But I need to have a presence in that market because that's where I'm, the larger volume of advisors are at present, and it gives me an opportunity to spread my cost and make sure I'm more scalable than others. Sure. And following on from the other half of that question, what is the marginal cost of additional advisors, I. E. Will more self advise advisors, sorry, self employed advisors, I think, event, and make you more profitable and less self employed advisors make you loss making? Well, the math would indicate that, yeah, that's that's the case. Yeah. So if the mix was then ultimately, the the drivers, in terms of the revenue are different and and therefore, the numbers that would come out of that are different. So so the answer to the question is is yes. Again, our focus over the next period of time is to really make sure that we stabilize and transform the way advice is provide. We'll be real happy to have 300 authorized representatives post MLC advice coming into our employee channel. You know, 1000 or 1300 when we put 1050 in GPA in that middle space, and they're growing presence in that, dealer to dealer. That's our aim over the next 18 months. After that, then certainly we'll we'll come back and re communicate what it might be post that. Fantastic. Darren, thank you very much. Out for the session. Our next session will commence at 10:45 focused on, and Darren will see you back for the Q and A at the end of the 3rd session. Thank you very much. Much. Bye, everybody. Business and end up. Madam, do you hear me? Yes. Yes. I can hear you. I'm just confirming to the driver as well there. Krishna, yes. Krishna, are you there on this call? He's he's taping his session 1 has ended. Yep. Yep. Maddie Krishna is not on the Zoom call. He's not on the Zoom conference. I know. I know. Nadi was thinking he was. Yes. Flight is already applied has gone up, but you can shook. Okay. Yep. Madhur, I'm dropping the speaker one from the main room. Okay. Let me know what when when do I add the speaker to? Sure. Adil, was there a delay in stopping the feed? Alright. Then the moment you told me to stop it. The moment, Shout, she gave me this this stop there. And, why they are hearing my voice on the live feed? I'm not connected to anything. Right? Yeah. This is Jay's ping me as well. Yeah. Yeah. And finally, they can hear our voices. But currently, right now, I'm only logged into this particular Zoom call we have, which is the, one of you have here. Jia, are you there? Hey, Ben. So we so a couple of things. Are we gonna improve the resolution of the slides for the second session, and are we gonna get rid of the recording from the, from the main screen. You give this is called. It's the only way to get rid of that recording button is to make sure that the host is not recording on that link. I'm not sure why they're recording on that link because I told them we're recording on the webinar unless that changed. So whoever's in that speaker link to shouldn't be recording local or shouldn't be recording that host. Vince, can you guys hear us? Hi, Vince. Can you hear him? Yep. I think he was just holding off talking for a second because they were coming through the webcast. Sean, but this is not this link is not the not on the bridge. I mean, it this is a separate link. Yes. I'm surprised because they are saying on the bridge or, you know, it's not related to anything. I don't know why Jay is saying that he's hearing us. I I heard somebody talking on the webcast a moment ago. Yeah. But that that's not our link. I mean, Jay Lee is pinging us and, you know, continuously asking us to stop talking I'm telling him that we are not on the bridge at all. Okay. Well, Abdul, Zoom endpoint is on the bridge. That wasn't talking. Was it? Yes. Yeah. But Abdul is No. He's muted on the bridge. Yeah. I don't start. Is it now? It's muted audio. I think pin pinch up. So you you have to be you have to make sure that on your end, you don't have us on one computer loud, and then you have because you're holding the web stream. Okay. Madam, can we move the speaker to the main room? Just a moment, Abdul, I'm just checking it. I'm just replying to Rachel. She's saying she's still able to hear us on the live. I'm not what's going wrong. I heard I heard all the way up through Carlos saying who's recording in what room? They shouldn't be recording, so I heard it up until a very recent moment. Yes. Oh, you mean from our link it was going on going out? Yes. I'm watching talking. Please stop talking right now, right now. Good morning and welcome back to our session on Evolve 21. Before we kick off, I'd just like to apologize for some noise that came through during the, intermission there between the session. I think that's it'll prove today why we like to keep, technology in house and use proprietary technology. So before we kick off, and I hand over to Mark Oliver as with previous sessions, Please email questions directly through to me at rachel.sculierowf.com. Au or forward them using the platform up on your top left of the screen. So now with, further due, I'll just hand over to Mark Oliver. Mark, if you could share your screen, and welcome. Thank you, Rachel, and good afternoon, everybody. Hopefully, you can see and hear me okay. Thanks, Rachel. My name is Mark Oliver. I'm chief distribution officer, which essentially gives me, leadership of our distribution and product capability for I, double o, f. I'm also the executive sponsor of Project Evolve, which, we're really looking forward to sharing with you over the next hour and taking your questions. I, for my history, been with I, double f for close to 6 years, and previously with over 20 years in global wealth specialists around the world in Australia and the UK, integrating acquisitions and also developing new advisor and client products. Shortly, I will introduce today's speakers But first, I wanted to take a few minutes to outline what Evolve is and some of the goals that we have set ourselves around Evolve as the slide talks to our, the, revolve project itself is in basic terms and enterprise wide program of work. Which is really focused on delivering what matters to our clients. And it does that by creating a single go forward platform for our retail, our advised, and our workplace products and services. Now we believe that we are unique in the retail markets, certainly, and and we believe in the broader market in delivering that single environment for all employer super direct retail and advise members and products. And if you keep in mind that those labels that I've just mentioned, actually aren't recognizable to the investors on cells, their labels that the industry puts on those cohorts. And we also acknowledge that those, members or investors will actually, through their lifetime, fit in 1 or more of those cohorts So for example, they may join the Superfund through an employer. They then later life may take on an advice relationship and subsequently move into retirement or, in fact, build an investment portfolio outside of their retirement savings. And so our offers allow them the flexibility to move between those products with minimal friction. And importantly, for us to be able to service their changing needs really efficiently and consistently. So our key messages today will be that Evolve is very much here today, and it's growing quickly. And ahead of our full migration of heritage products or legacy products, It's always much more than just an IT re platforming, initiative. It's actually about enabling a number of IWS strategic pillars or strategic drivers, and while it delivers value and great service and outcomes for our clients. As Renato mentioned at the opening, we have an overall goal of reducing the cost to serve and making capacity for innovation through simplification of our operating environment and ultimately delivering on our client first, which is essentially where we eliminate waste or the things that our clients don't value, to spend more time with clients on the things that they do value. In its current phase, Evolve 21 is a single platform ecosystem for, all IWS heritage products by the end of calendar year 2021. So that will entail 2 migrations occurring in mid and late calendar year 21. And in essence, what that does is streamline our current array of 73 products down to 13. So you get a sense of the simplification and the opportunities that presents to focus our attentions on development and innovation. This then opens up clearly further opportunities for consolidation of both the PNI and the to be acquired MLC business. Now Evolve is already the home for our IWF branded workplace offers our, employer super products. But today, we're also seeing strong uptake in the new Evolve product adviser products, which were launched over the last 2 years. And they include products, branded, Shadforth Portfolio Service, Expand, and I, double F, essential. And having been launched over the course of the last 2 years, they've now garnered over $4,000,000,000 and about 10,000 client accounts in that time. In fact, our new account openings as the chart show on the right hand side new account openings on Evolve now exceed both our pursuit and our heritage suite, and they did that during the course of late 2019. As the overall number of aggregate new accounts in I, double f continues to grow. So as you'll hear this morning, we're very proud and excited about the unique ecosystem that we're building and and important to point out that it's an ecosystem that we own and control while our clients will always determine what value looks like, we believe it's really important for us to retain the flexibility and the agility to respond to their changing demands. Essentially, we don't want to put ourselves at the mercy of an outsource platform provider their frailties or fragilities and their priorities for that matter. And we'll show you some very concrete examples of this in action later today. But while the system we've built under Evolve is our own, we do obviously engage with others to help us understand what matters to our clients and prospects. And in fact, in the evolved development process, we continue to work closely with members, advisors, and in fact, the general public to inform on new features, new functionality, and the all important user experience and help us prioritize some of those aspects. But to ensure we remain focused on the quality of our platform service overall for the key financial adviser market, We look to wealth insights for their detailed and unique independent research. Over the last couple of years, as we've been developing Evolve, Wealth insights continues to regularly review the IWS pursuit platform, which is our outgoing heritage infrastructure. And will be replaced by Evolve by the end of 2021. Now pursuit in those surveys continues to show great progress. Across some key service attributes and currently sits 5th out of 15 overall amongst completing competing platforms. On overall service. That's a number of factors that are taken into account there. In fact, 75% of advisors rated at 7 out of 10 or higher. And we think that that can only improve with the ongoing rollout of the Evolve suite of products. Now, obviously, we would expect that Evolve products will be surveyed by Wealth Insights in their future report that usually take place around April or May of each year in a ring market shortly after that. Now just thinking briefly with the, wealth insights research one interesting aspect and the reason we continue to use them was a a real bellwether of satisfaction in the market is their 2020 research, which looked at about 800 different financial advisors across the market and surveyed over 20, about 26, in fact, service features, which wealth insights cluster under 10 key attributes. Now in analyzing those attributes, the power of wealth insights is their ability to drill into not only what advisors say, is crucial to them and important, but also what actually, does drive their satisfaction. So looking at some of the implicit matters that are considered. And they do this at Wealth Insights through a complex set of regression analysis to reveal and say not only what they say, but what actually drives the overall satisfaction for advisors. And these are elements tend to take prominence in the areas that we focus on in our quest to deliver what matters. And if I was to sort of summarize, it it would suggest that, you know, the bells and whistles of platforms, you know, extensive investment menus, sophisticated trading tools and the like are nowhere near as impactful on satisfaction compared to well integrated IT systems, prompt and efficient service from call centers, and, of course, client value for money. In fact, whilst the individual, IT and web attributes surveyed by wealth insights of which there are half a dozen or so, individually didn't rank particularly highly. So, you know, so 11th, 14th, 17th, and 8th. When you collect them together, when you bunch them together, they actually this IT and web functionality is the single strongest bearing on whether an advisor rates a platform well or not. So to, today's speakers sorry. I want to make sure I'm still on. Today's speakers, to answer score the enterprise wide nature of the Evolve project. In this session, you're gonna hear from several of our leaders across the business. All of these individuals contribute along with their teams to the success of Evolve. And in fact, they am a respected teams are also beneficiaries have evolved in serving our clients. Now each of the speakers' functions and capabilities are complementary, but we do all have one single focus, and that is delivering what matters for our clients. That's what I call the client first way So this morning, I'll first pass to cable Ricard. Cable is general manager product, and we'll showcase some of the features of Evolve that are in market today focused on delivering what matters or solving problems or pain points for advisors. Kaybo will pass to Sharam Heckmat. Sharam's our chief information officer, and he will showcase the unique technology underpinning. The Evolve suite. And finally, he'll pass to Frank Lombardo. Frank is our chief operating officer responsible for the delivery of our service and support to those 3 cohorts. I mentioned, direct members, our advisers, and employers. And he'll speak to how Evolve is helping bring this critical service element of I, double f, to life. Now all three speakers in this segment have 5 or more years experience with I double f. And interestingly, all three of them have also worked at NLC prior to joining I double As Rachel mentioned, they'll have time for questions at the end. So if you can hold your questions till then, and I'll pass over now to cable. Thank you, Mark, and good morning, everyone. As Mark said, my name is Kate Rickard, and I'm the general manager of product that I've left. I've been in the industry for over 15 years now, having previously worked at AVEVA, UBS in London and MLC. I've been with the I've left group for over 9 years now, and I've been heavily involved in all of our major platform transformations, integrations, acquisitions, and product initiatives. Today, I'm going to talk to you about the Evolve platform, the journey so far, and how it's enabling improved client outcomes through efficiency, sustainability, and our ability to innovate. I'm also going to share a number of short videos with you that will help showcase the Evolve platform. Within our Autolift heritage business, pre P and I, we have operated 2 core platform. But over the last 5 years, we've been heavily investing in the Evolve platform. Creating the Go Forward platform to house all of our proprietary products, everything from my super, the retail advised, superimension, and IDPS solution. We spent considerable time a number of years ago building out the core foundations of a platform. We rebuild the tax engine, the fee engine, the way the investment menus would operate. We relaunched and rebuilt the client site, the adviser site, and the licensee site. We have then been iteratively releasing features, as you can see from the top half of this slide, and we've done that progressively over the last few years. As I said earlier, the Evolve platform has historically been one that has housed our workplace in my super solution. But since 2018, we started to introduce retail advice platform and products. And those products already administer some 10,000 client and near $4,500,000,000 worth of funds under management. As we come into 2021, the Evolve the Evolve project we'll see a consolidation of our 2 core registry system. Upon completion, and we expect to complete at the end of next calendar year, The Evolve platform will be administering north of 260,000 client and near $40,000,000,000 worth of funds under management. I'm surely going to show you a short video that will help demonstrate just some of the ways the Evolve platform is addressing pain points, crane efficiencies, and adding value to advisors, and their ability to add value to their client. No to advice businesses or clients are the same. Advisors need a solution that can be adapted to suit the way they provide advice and the types of clients they service. What remains consistent is the need to create efficiencies and deliver value to their clients. At I, everything we build is in collaboration with advisors and investors. We conduct interviews to understand client needs. Then we ideate and test different functionality before we begin the building process. Let's take a look at some of the purpose built functionality that creates efficiencies and enhances client outcomes and service experience. A key advantage of the platform is the reweight feature, which allows advisors to establish an automatic rebalance. This ensures that the portfolio stays to the client's recommended asset allocation. The portfolio automatically rebalances, while utilizing straight through process to place the client's orders instantly without any manual intervention and importantly provides peace of mind. Prior to submitting the reweight instructions, the adviser can view the current versus future portfolio asset allocation. Administration burden on Advisors Businesses. And making it a simple transaction. This is particularly important during times of market volatility. We've made it easy for advisors to participate in corporate actions on behalf of their clients, removing the need for manual communications and paperwork, The corporate action screen provides an overview of the core protections, including the offer documents. Advisors can see a complete list of their clients who are eligible to participate. Our accounts list page has been purpose built to streamline the advice business process by giving advisors the freedom to submit individual instructions for each client on one screen. In building our platform, we aim to consider what our clients need now and anticipate what they will need in the future. An example of this is the delivery standards. Advisors can establish a new fixed term agreement or start a new ongoing agreement. This provides the adviser with flexibility. From time to time, an adviser may receive a request from a client to urgently access their money. We have made it as simple as possible for advisors to assist their clients with this request in a timely way. When an investment or portion of an investment is sold via the platform, clients don't account is linked to their bank account with 1 of the major banks, they can have access to their money within 15 minutes. Owning the technology enables I00F to adapt quickly and provide tailored outcomes that suit what our clients need. I, double o, f, online, intuitive, seamless, and in real time. Thanks, Mark. Thanks, Mark. In a changing world of compliance, technology and business challenges, the one commodity no one gets more up is time. Considering the efficiencies managed accounts can enable, we're seeing a growing number of advisors consider managed accounts. They can offer and do offer a range of benefits, both to advisors and to clients, whether that be the enabling the timely response to changing markets, reducing compliance and admin burden, or improving client engagement. We've had a major account solution on pursuit select for some 2 years now, but earlier this year, we extended our managed account solution on a bulk, and it's already gaining considerable momentum and positive feedback. I'm sure they're gonna show you a a short video that will demonstrate just how easy our managed account solution is to implement. And the benefits it can have for both advisors and clients. In today's ever changing environment, advisors are facing increased regulatory and compliance requirements. Which add operational complexity and increased costs to their business. Advisors need solutions that enable them to efficiently implement and actively monitor portfolios. A growing number of advisers are embracing managed accounts to solve this problem. Our IWM managed account solution has been purpose built on Evolve to improve operational efficiencies, help advisors be responsive to client needs, and also free up their time so that they can focus on servicing clients and growing their business. Let's dive in to show you how simple it is for an advisor to set up and manage a new managed account. In, the advisor can search for a specific client account using the simple or advanced search function. After selecting the client, they click on the investments tab. Under the managed portfolio service section, the adviser would select add a new model investment, and then the client's chosen model. To simplify the managed account implementation process, Advisors can choose to transfer existing assets into the model. This purpose built functionality allows the sell down of existing assets to release cash in a single step and to transfer existing assets into the model if the client already holds them. Clients can hold the same asset inside and outside the model, and advisors can purchase 1 or many models within the one account. Saving advisors time, reducing administration, and providing their clients with transparency and timely execution. When submitting the order, the client's buy, sell, and transfer summary will be shown. If the adviser is ready to proceed, click on submit. The password will need to be reentered to confirm the order. Once the client is invested in the model, Advisors are able to see the full portfolio online. They can also see trade and transaction activity, including any buyers and sells generated by Ariba, Portfolios are reviewed weekly and rebalanced as required. The client can also benefit from reduced brokerage. Here are what our clients are saying. Sorry. You're on mute cable. Apologies there, Roan. Apparently, we could hear the sound, but unfortunately, you couldn't see the video. Just a reminder that those videos are embedded in the documents that are available on the ASX release, that you could view in your own time. As you saw in the first video, with a modern functionality and a contemporary user experience, we do offer our leading proposition in the market as advice businesses continue to change, and their client propositions continue to change. I'm now gonna hand over to Sharon Heckma, who's our chief information officer. Sharon will, share a shine of light on the modern technology and the thinking that has underpinned the Evolve platform. Sure. I'm gonna ask before you start. I just make sure that the operator can can get your slides working. I'm gonna stop the share and restart it. Sure. Good to go. Operator, can you confirm that, Shahram's slide is now showing? Yeah. It's working, sir. Thank you. Go ahead, Sean. Thank you, Mark and cable. And good morning, everyone. My name is Shyam Heckpat. I'm the chief information officer. At RWF. Today, I'm going to talk briefly about the exciting technology that underpins evolve. Next slide, please. I'd like to start by summarizing the 6 key benefits of Evolve as a contemporary platform for serving our clients. 1st, Evolve is an important enabler for reducing our technological complexity. By consolidating on to a single go forward solution to satisfy all our platform needs, we are reducing the number of systems in our portfolio. And hence, the overall complexity. 2nd, Evolve is enabling us to reduce the cost of doing business. Not only in our IT terms, but also product and operations, which ultimately benefits members as well as shareholders. 3rd, one of our key objectives in creating Evolve is to create capacity for future growth. In other words, we are very conscious of the fact that the needs of growing business like ours, are best satisfied by a mod modern platform that looks beyond current capacity requirements. But more on this later, 4th Evolve is developed with business simplification in mind. We're moving away from a myriad of pro products on multiple registry systems onto a smaller and simplified set of products on a sing single registry system. 5th, we've adopted a client first. We are working throughout our business, which Frank Lombardo will shortly talk about. Within operations, client's way client's first way of working is enabled by the spoke solution that has been developed using Evolve Technology. And finally, Evolve is a wholly in house developed and owned solution. We've adopted this approach because we want to be in control of our future and not at the mercy of a vendor whose interest in the long run In developing Evolve, we've adopted a state of the art software architecture. If you look at the history of the evolution of software architecture, Earlier applications had a monolithic architecture that consisted of a central system, typically a main flame, plus a database that was accessed using Dom terminals. Such legacy systems that are still in use today. The next generation of applications with client server where the client was typically a PC on a user's desktop that connected to a central server in a data center. This was a good step in load distribution and scalability. More recently, market services have become popular as a more scalable, scalable means of building enterprise service. Evolves architecture is represented by the stack on the far right of this slide. It delivers unparalleled flexibility and scalability by extending the microservices concept to the front end using the concept concept of micro front ends. And because of this, we believe that Evolve is at the cutting edge of modern software engineering. We have intentionally avoided building a partial solution by putting a shiny front end in front of an outdated back end. Evolve is a modern end to end solution. So what are microservices? Put simply rather than developing a large system such as Evolve, as a monolithic piece, we've divided it into hundreds of smaller components that 10 exists in their own right, but communicate and collaborate to deliver the required business functionality. Think of each microservice as something that implements a well defined business task, such as authentication, switch, withdrawal, rebalance, and so on. This architecture has significant benefits. It's not only highly scalable, but also highly full tolerance. If a service fails, the rest of the system is unaffected and continues to work. Because microservices are decoupled, the overall design is simplified and easier to maintain. A key engineering benefit is that services can be developed, tested, and deployed independently. This makes the architecture highly suited to agile development, which is how we work. We have many agile teams who work largely independently on separate services. Finally, reusing 3rd party services to gain development speed is straightforward. All we need to do is wrap the 3rd party service as a market service and added to our solution. I mentioned the scalability earlier, so allow me to explain why it's so important. There are 2 distinct methods of scaling a system. The first method is called Vertical scaling shown on the left. This is how you scale all their monolithic systems. Because the system must run on a single server, Your only means of scaling it up is to increase the power of that server with more CPU and memory. The analogy for this is a skyscraper. You can create more floor space by adding more floors. In both cases, there is a hard limit that cannot be exceeded. The second method, horizontal scaling, shown on the right, gives you almost unlimited room for growth. To grow the capacity, you simply add more service. The analogy for this is a city which can grow, not only Upport, but also Outwards, to create space for tens of millions of people. We've always designed for horizontal scalability, and that's why we're confident about its ability to In Designing Evolve, we've paid close attention to the proper design of the user experience or UX for short. This is important because good UX can make your system a lot easier and more enjoyable to use, thus lifting productivity. To achieve this, we've developed a global experience language or JELD for short, as a shared framework to give all our digital services a consistent look and feel. As I mentioned earlier, we developed all all our user interactions using micro front ends. Which deliver similar benefits to mark to what microservices do for the back end. Additionally, we support all popular end user devices be it a desktop, laptop, tablet, or smartphone. But importantly, we've adopted the progressive web app or PWA for short stall of development. Which means that we can support all popular devices using using a single code base without developing native apps for Apple and Android. One of our key design principles is not to reinvent the wheel. So to this end, Evolve has a very flexible plug and player capability that allows us to easily integrate best of breed functionality. Be it third party or in house developed. By way of examples, we've integrated portfolio clouds, portfolio modeling functionality into Evolve. The MDA solution that cable attempted to demonstrate earlier is powered by Portfolio Cloud's engine. We recently integrated a customizable chatbot sourced from Intercom. We've partnered with Beacon University's Machine Learning Lab who assisted us in developing automated demand classification for client first. And more recently, we've developed in house machine learning solutions for things like automated signature comparison, form scanning and classification. All these solutions have been successfully integrated into Evolve's microservices architecture. And are currently in active use. I now hand over to Frank Lombardo to present the client's first way of working. Good morning, everybody, and, thank you, Sharon So that's sort of very insightful, piece on our technology, and and I'll look to to build build on that. Franklin Boire, the the chief operating officer for IWA, in addition to working at a number of organizations, I've spent 30 years in the industry with the last five at, I double 0. What I can say is that, of of working, across products, operations, projects, and transformation. And in addition to working at different organizations, that's given me, a real sense of what's most important when it comes to to teamwork and having a deep alignment around what's really important when it comes to strategic initiatives at any point in time and working together to deliver outcomes for our clients. At the beginning of my journey with, I don't know if I felt this, and to today, it was quite privileged. At the support that I was provided in, being assigned the the task, or be brought to the organization to help to transform the client experience and the service delivery from IWM to our clients. It's been a while since, I've talked to you at, an investor day. And what I'd like to do is do a quick refresh What's it all about? You've heard the word, but, let's just spend a little bit of time, just unpacking the word client first. I want to share with you what we've done in the last, 4 years. And finally, what I wanna do is share share some of the results. These indicate to us that we are absolutely on the right track. Product, operations, and technology working together is more than a platform. In my team, or across client clients and and process, I should say, and, for the team members within, client first. It's all about delivering a unique human experience. And unless all the pieces of the puzzle that support you are working harmoniously. At that moment of truth, when the client is relying on you to deliver what matters to them in minutes It all has to come together. I'm especially proud of our purpose. Understand me to look after me to secure my future. If you recall, when I launched the client first strategy. I talked to you about the fact that we listened to and did the work for over 5000 client demands, and the purpose was born from that work. It's a simple purpose, understanding, look after me, secure my future. It's written from a client perspective, outside in thinking, if you'd like. But it's very powerful, and it's a very high standard. And the work I've been doing over the last 4 years been all about bringing that to life for our clients in those moments of truth in every interaction that we've had with them. We empower our people to deliver what matters. We've redefined roles with added tools we've increased their knowledge, most importantly, we've created a system of work that allows decision making rights at that point of contact, that point of contact that is closest to the client. We have built new, capabilities as Sharim has just talked to. Those capabilities not only enable us to deliver what matters to clients and to work in this new way of working, they also provide the data and insights necessary for ongoing improvement activity finally, the role of our managers and leaders We've redefined the role of the leader. It's all about being in the work. The only way that you can remain relevant to clients and to our people is to be in the work, in the trenches, if you'd like. That's led to a flatter structure. Today, I can confidently, be here and tell you that we have scaled a highly personalized experience for all clients. It's all about a cohort of 1, What matters to you is individual and it's unique. That's what we mean by delivering what matters. It's about delivering that unique individual experience to you. It's cloud agnostic it's channel agnostic. It's location agnostic. It's product agnostic. It's agnostic to the demand, at that moment of truth for you as the client. At the center piece is single point accountability. And to end ownership, for the client demand without any handoffs. This is unique. I've worked in organizations where that, personalized experience is the domain of your highest most valued clients, we have developed a system of work that enables us to deliver that to every client. So what have we done? The unique client first operating model has involved redefining each and every role in the team. It's involved multi skill in every each and every single team member. We've done that through building a learning and development capability as well as introducing, new tools to help us deliver and distribute knowledge to our people when they need it most. We've collapsed the front and the back office, if you like. We do not run a traditional call center and functionally specialized administration teams. That equals handoffs. We cannot deliver that client experience that I talked about. With those handoffs. Equally, Mark talked about client first removing remote waste. The design of the operating model is has been all about removing waste. In the pursuit of delivering a differentiated client experience. Sharon talked to you about new tools, one of those tools is our CRM and workflow. We call it rocket rocket and powers our people to work the way that I've just described. It has been built in the Evolve ecosystem It is embedded in that ecosystem and integrated into the underlying platform and other capabilities that we choose to introduce into that ecosystem. That's proven by the introduction of robotic automation, AI, chatbot, knowledge management, and speech analytics. Sharon talk to the reduction in in time and the efficiencies. Cable talk to a withdrawal request being able to be completed within 15 minutes. That is true online for advisors when the demand is received by them, but it's equally true if that demand is received by a non advised client into client first, or in fact, is received by advisor into client first. When we started this journey, it took over 5 days on average to complete a withdrawal. The Knowledge Management System is enabling us to distribute Knowledge to our people at home in an easy to digest format, whilst they are on the phone with clients with a a Google style search engine attached to it. The speech analytics is enabling us to lift unstructured data from calls and combine that with the structured data from our CRM and workflow from the underlying platform and from any, system that we integrate into the Evolve ecosystem. Primarily, it's creating the efficiencies so that we could spend more time talking to clients. What that does is drive richness and intimacy and more valuable client data. We are growing our financial education and well-being team. This year, we appointed a GM of financial education and well-being, Anthony Kaniba. Anthony comes to us with an advice and digital background. This team also includes a scaled advice team, but, Anthony's main priority is to leverage those capabilities that I've just talked to to deliver a digital proactive experience for our members. The combined IWS, PNI, and MLC business will have approximately 1,000,000 non advised members. Anthony and the team are focusing on building digital capabilities to engage with those members in a way that drives a deeper more intimate relationship We're also partnering with Darren Warrick. We heard about advice 2.0. The work that we're doing with Darren is leveraging the knowledge that we've built from client first and applying that to our advice businesses. In addition to the work that Darren's outlined and the technology capability that Darren talked to, we believe further efficiencies and an improved experience can be delivered through, removing waste and duplication in the adviser office in the same way as we have done through client first. Finally, growing our digital capability, we are currently doing that through what we call test and learn pilots. What Anthony and the team are doing is engaging with, our members, through pilots and, and, what we're doing is testing the response as we start to build, as we start to think through and and build the future of the digital experience for our members. Just to share with you, the screen on the the left is the rocket system, the the CRM and workflow that, both Sharon and myself have have talked to this morning. What I wanted to share with you on this slide is that this capability is ready now for the future of flexible work. In fact, we could not have moved seamlessly in a COVID environment to work from home without these capabilities. These capabilities enable our employees to choose when and how they want to work. This is a minimum standard for all organizations today. We're there today. The front end the rocket system, which front end, the platform administration system, currently front ends both the legacy, our pursuit platform that Mark cable spoke to and the new Evolve, product suite. So if you like, it shields the client, it shields our people from the underlying system. And through microservices, integrates seamlessly to enable our people to deliver what matters to to clients. But the key point that I raise is is that this is a proof point that We can commence the client first transformation for both PNI and for the MRC business. Prior to and in parallel with the product transformation product rationalization. We can front end those legacy administration systems with that, with rocket, the, the the new CRM and workflow, and enable us to bring forward that client first transformation whilst the rest of that the team is working on the rationalization of the underlying, systems and processes. Some of the the data. Through 2020, we had, on average, 30 a 37% increase in, demand volume, but that in isolation doesn't tell the true story. At some point, the demand volume was up to a 100% more than the same time last year. April and July were great examples of that where early access, to Super demand skyrocketed. So the system of work has to be able to cater for an increase in volume esticator for an an adapt to unexpected change and to variation in demand. What I can tell you is that, through the course of the year, over 65% of all demand every demand into our system of work was completed in 1 business day. Our early access withdrawals, were leading from an industry perspective. At the same time, we increased the amount of time that we spend with with our clients on average 7 to 8 minutes per call in many cases over 10 to 15 minutes per call. If anything, we learned in 2020, the importance of human interaction, real conversations with real clients and we're really proud that we're able to deliver that. At the same time, we managed to keep the average wait time quite low through the 2020 period. So as a whole, we feel, in what was probably a 1 in 100 year event, that our service performance lifted and stay true to our purpose. I touched on Anthony Kaniva and the financial well-being and education team. Through the last few years, we have free capacity. We are reallocating that capacity to value work. That value work includes, retention and scale advice. Over the last 12 months, the team has retained over 800 non advised members and a $140,000,000 in funds under advice. We will continue to invest aggressively 1, approximately 1,000,000 non advised clients in the combined out of the left PNI and MLC entity. MPS, a measure that I'm sure you're you're familiar with. And, as Mark opened up with, the the client The adviser, the employer of November, is the ultimate arbiter of our performance. We measure this through NPS. Our member NPS is 46% and our advisor NPS 59%. I could also share with you that the Advisor NPS for the Evolve product sits at 70%. We're very confident we are on the right track as measured and assessed by our clients. On the far right hand side, Fine and co, who basically, introduced, Net Promoter Score to the world, has a classification system, we consider our current performance excellent, but that's not good enough. Our aim is to be world class. It's only once we're world class that our clients are truly receiving the the service that they expect from us. Finally, and Mark opened up with Wealth Insights. I thought I would share with you a couple of the key measures, for the service parts of the organization, administration support, and these are doing business. For both of those, we sit, 4th out of 15 platform survey. And the the gap between the top 4, it's not significant. I am very confident that with the ongoing investment and the maturity of our operating model that we will continue to improve our ranking in And just to to close my part of the presentation today before I hand over to Mark, I thought I'd share with you the some of the, the feedback we're receiving from our clients. And I'd have to say in my 30 years that, the level of positive advocacy and feedback, which clients are taking the time to write to us about is the highest that I've ever seen. We receive 100 of these, and we'd probably, store them on our intranet site as, inspiration for our people to to keep going to deliver what matters. I'll hand back to Mark now. Great. Thank you very much, Frank. And thank you, everybody. Hopefully, you took a lot from that session. And as I outlined the start, key in our approach to developing our service and, a class leading service is the delivery and testing of new features and getting feedback from our clients. And I think in the testimonials as Frank said, certainly give us strong, encouragement that we're on the right track and gives us the confidence to keep going. And and these are in addition to the adviser testimonials that, cable had in in some of these videos, if you are able to see them, so we we continue to receive fantastic feedback, particularly around the Evolve suite and, it gives us great confidence for the future. So to close out before we move to questions, I think, you know, really the key points from from this session have been that Evolve is very much here today. It's growing strongly. Amongst our advisors and their clients. And it's unique insofar as has a it's a single offering across a range of different offers from workplace, my super right through to advise client relationship, and non super investments, all in one place. And in so doing, it's in enabling the whole organization to focus squarely on what matters to our client. And that core ecosystem brings together the latest technology, value add functionality, and what we believe is our differentiated client for service. So, Rachel, I'll pass back for questions and I'll ask the others to join. Great. Thank you very much, Mark. And, yes, if everybody else could join back and put their videos on. So thanks, Marco. We have seen overwhelming demand for this virtual briefing from shareholders analysts, other interested parties, and from our people at IOWF and future colleagues from MLC, which has caused increased bandwidth demands when it comes to the video live streaming. However, as cable noted, I do encourage you to rewatch using the links on the public PDF so you can really see the benefits and points of difference on our evolved technology. So, Mark, first question, we might turn to you. This was asked at the advice session earlier, but thought it was more appropriate for this session. Mike Dummer at BAML asked Mark, why have some of your fast growing competitors? For example, Net Wealth And Home being so successful at winning new members and how eligible OF advisors win new members? Yeah. Well, I think the point I would make is we do continue to win new members. And if we look at the industry, I think Frank, really called out well in his session that you know, us and and a few others have a large existing client base and they remain a significant focus for us for us, that will continue to be a tremendous area of focus if you think of, you know, the the the growth of some products have come from movement across the industry, if you like, flow between, providers, we're we're really focused strongly not only and continuing to grow, but also to nurturing the substantial stock of members that we have. And, you know, a number of our competitors haven't had the client base to be spending that time on. Great. Thank you, Mark. Mark, another question for you. The external platforms, for example, Viti Panorama that IDOS gets revenues on. Are there any further risks to these revenues in a world where cross subsidies are being reduced? Are you planning to bring more of the foam from this onto resolve? Look, I think really our our clients will be the key arbiter of that. In terms of those arrangements, we are confident that they are fit for purpose in the future, but ultimately what we want to offer our clients is choice. And, we have a unique perspective on how the market is operating to also focus on uplifting our proprietary capabilities. So I think it's really the best of all worlds that we can offer our clients and advisors choice across a range of market leading offers, but also continue to inform our own proposition. Alright. Thanks, Mark. Cable. A question to you. How much FU admin will there be on the combined platform post integration? I believe that means post completion of Evolve. The completion of Evolve 21, which will say the consolidation of our platforms from 2 to 1 and our product set from 73 to 13, we'll have near $40,000,000,000 worth of funds under management and about a quarter of a 1,000,000,000 customers around 250,000. Great. Thank you. Sharon, a question for yourself. I, double s is widely considered to have old technology and a loss of legacy technology issues. How would you respond to that? Well, if you if you go back many years, that might have been true, but, over the past few years, we've built considerable capability, internally to develop, the evolved platform and I would say that the the team that we currently have is actually one of the best in the country. And the fact that they've been able to develop this completely in house, a very advanced solution, which is market leading is, is evidence that that statement is just not true. I think I think the view out there in the market is totally outdated and not on par with our current capability. If if if I could add to to Sharon's answer, because I wholeheartedly agree, and I'm really passionate about this one. And and maybe our reflection is that we, as an organization, have done a good enough job, talking to our capabilities. And that's what we're here to do today. But having led operations teams for a long time, I can tell you that the partnership that we've got with Sharon's IT team and the agile way that they work is delivering capabilities faster to the team than I've ever seen in my life before. The early access to Super was an incredible example where they responded almost within a weekend to develop deliver new capabilities to in the face of huge demand, never seen before in the industry position us to preserve what we think is industry leading service. But the proof point of the tech capability are numerous, and it's a myth that we're here to to debunk today because it's simply not true. Yeah. Thank you, Frank. And final one for Mark before we wrap up, when can we expect to see involved ranked in wealth insights data? Yeah. Thanks, Rachel. I think as I tried to outline in the opening, we will expect that to be surveyed in the 21 survey, which I believes in field sort of April, May. So published results, usually, it's shortly thereafter. Great. Thank you, Mark. Frank, Sharon, and Cable. And the guys will be available for Q And A after the end of the 3rd session. So thank you guys again. And the next session begins at 12 o'clock, focusing on transformation at IOWF. Again guys. Well, a bit of club history is there for Manchester United today. Can they win an 8th consecutive away Premier League game for the very first time standing in their way and inform Southampton on a dry sunny afternoon on the south coast. Telles outside of his boot. Useful bought His greenwood drip and wide finds the side netting, bought a great bit of football from Manchester United. The corner comes in, and it's not in and Bednerach runs away as they lead 1nil. Well, that's given away. And now his greenwood greenwood driving through. Greenwood, good save. And the oh, Fernandez goes in surely just have to knock in the How has that stayed out? How have United not scored? I'm Birch from Sandler with this, but you think it's going to be the captain more prize? Yes. It and he scored war price direct from the free kick. The hare did get there. He couldn't keep it out, and you liked it in big trouble now too Nil. Kibani's ball in is a good one. Fernandez right back in it. Right back in it. Manchester United has still got half an hour to get something out of this game. Inevitably, Bruno Fernandez into double figures for the season, 21. It comes. Yeah. Good afternoon, and welcome back to out of the left third and final session of our investor briefing. Again, I hear that there was a bit of with 2 streams during the, the break to the 2 sessions. So apologies for that. It seems that we got overlapped with another, live stream. So our final session is a random transformation, and Chris Weldon and Amell Walls will be taking us through the presentation. And questions as always can be submitted via the link at the top left of your screen or an email directly to me in advance. And thank you for those who have sent through questions to the other presenters as well. Will endeavor to get as many answers as part of the Q and A session at the end of this presentation. So without further ado, I'm handing over to Chris Weldon. Chris, go ahead. Fabulous, Rachel. So thanks for joining us here for our last session of today. My name is, as Rachel mentioned, I'm Chris Weldon. I'm the Chief Transformation Officer. At idouble F, and I'll be joined today by, Mel Walls, who is our chief people officer. I've had over 16 years experience at idouble F and MLC. And and during that time, at either we've got led a number of our business integrations and change programs. I have background that that that spans both product and client and process and have a very deep understanding of the business. In this session today, we're going to provide an overview and update of our transformation and integration activity I think a lot of the things that you've seen in the sessions before, you you will have noticed a thread that does tie those together, and the aim of this session is to sort of bring it all together, I'm gonna start by providing a short recap on the MLC transaction, and then share some of the lesser known insights as to why we think we can move at pace with that integration. I'll explain how the MLC and ANZ pension and investments, which I think we referred through this session as P and I, why those big those acquisitions can leverage out of less strategy of investment in, advice, technology, people, and process. I will share how we're approaching the integration and provide an update on on the progress we've made today, which many people are really interested in, and then I'm gonna hand it over to Mel who provide, I I guess what's probably the most important update, which is an update on an aspect of our business, I think, isn't well understood either out of the market, and it's how out of us unique culture is really supporting. Our transformation into a leading financial well-being business. In this session, we're gonna we're gonna try and share as much information as we can, but there will be some areas where we will be limited in the extent of the information that we can share at this point in time, and following the session, Mel will hand back to Renato Motta, our CEO, and we'll be joined by our other presenters for, for questions. So if you have questions around transformation, you can certainly ask them and myself for a bell, but the other presenters will be with us at the end of the as well. On 31st August, this year, we announced the acquisition of MLC, from NAB. This was an opportunistic acquisition. And one that is going to position IdahoF at the forefront of the industry, the MLC business is highly complimentary to both, IdahoF and our recent acquisition of the ANZP and I business. NLC brings with it a number of advice, businesses while whilst we're not acquiring the license licenses, the advice businesses itself is highly complementary to our existing offer, and Darren touched on some of that in his earlier session today. They bring with them a range of platforms across both workplace, simple and comprehensive, advised, platforms, and they give their complimentary to the platforms, which idlef operates. They also bring MLC brings that the MLC Horizon Series And Investment Capability, no Nation capability that is complimentary of a strong multi manager capability. In addition to that, MLC is also adding direct asset management capability to our business and asset consulting capability into our business as Those similarities, and consistencies are important when we consider how we're approaching our integration program. And also importantly, underpinning all of that is, is a consistency in the culture that we're observing across all three businesses, NLC, A and Z P and I and I don't know if in a desire of its people to deliver great outcomes to clients that secure their financial futures. Following the completion of the MLC, and you've said what I've seen in this slide before we have we have presented this previously, when we announced the acquisition of MLC, but the important thing to note is that post the completion of the acquisition, we will be the la we will have the largest footprint of advisors in the country. We will have the largest, platform, come in the country, and will be 2nd largest, largest rate by superannuation assets in Australia. Through that scale and some of the things you heard earlier today, we can reduce the cost to serve and generate benefits both our clients and our shareholders in an increasingly what can be competitive market. We're going to achieve that our transformation and integration program. And and certainly the aim is to leverage off our investment that we have made in advice, technology, people, and process. Before we move any further, I think it's important just to take a moment to understand some of the aspects of the MLC acquisition that mean that we think we could move a relative pace with that integration. Firstly, there are limited interdependencies between the MS Wealth Business And MLC Live. In 2015, NAB commenced the program of work to separate, the Wealth Business at MLC from the Life Business accommodate the sale of MLC Life to Nippon and allow the 2 businesses to operate independently. And and that has been largely occurring since 2017, and there are now only limited, transitional services arrangements in place between the 2 organizations. There is also limited interdependencies between the Wealth business and the bank. Work commenced in 2018, a program of work was undertaken by now to separate MLC from there to facilitate either a demerger or a trade sale. The trade sale, ultimately, what emerging with food sale for for out of lead. That program of work can now be leveraged, support the separation of mlc from from that and reduce the period of time, which we re we need to rely on services arrangement. So thinking about it, they haven't waited until the sale, start that process. They actually commenced that 2 years earlier. Also in preparation for a demerger or trade sale, MLC has undertaken a lot of work to simplify and improve the competitiveness of its products. Competitiveness has improved through investment in digital capability, improved product features, and more competitive pricing. This has resulted in recent, improvements in client retention. Complexity has also been removed. MLC reducing the number of ROC licensees from 3 to 1 and the number of superannuation funds from 10 to 4, noting that of those 4, 2 are private labels. As a result of this, we're we're acquiring a business that has far less legacy and complex arrangements embedded within it, which means that we can get on with the job of integrating in a much more, timely manner. In respect to the advice divisions, as we've already noted, we're not acquiring the advice licenses. Which means that the liability and remediation activities remain, responsibility of net. This will allow us to spend focus more effort on continuing to improve our advice proposition, and improve the efficiency sustainability of their advice services. And lastly, there's no doubt that this acquisition and the integration program is a complex one. To help us with this, we do have some experiences. It's not the most important thing, but it does certainly help, there are a number of senior personnel and also less senior personnel within our business that do have experience across both MLC and IWS. Some of them include a chief operating officer achieve information officer, our general manager of product, our national manager of product development and digital experience, and our program manager for Evolve, who, cable and, and Sharon spoke about earlier, prior to joining auto blip early this year was ahead of technology at MLC. And of course, there's also myself. As we said, as you would have picked up on the theme through the the presentations today, the purpose of transformation integration is to leverage I, double 0 strategy and maximize the investments we have been making in in in advice, technology, people, and process. So let's look at some practical examples of that. Darren, where it's fibrillier today about the investment we've been making in advice 2.0, to enable our advice businesses to operate more efficiently and sustainably. A great example of that was our investment in Wealth Central. That technology can now be leveraged and applied across, an additional 500 plus advisors, following the completion of the MLC acquisition. The Evolve technology platform, which Sharon, Mark Oliver, and Cabal Ricard spoke to you a bit earlier today, that technology is is is capable of supporting direct to consumer workplace simple and comprehensive advisor needs in a single ecosystem, We will be able to leverage that technology investment to improve the product and service offering to MLC and A and Z P and I clients. At their advisors and employers. And to do that, we will leverage off our existing mature and ongoing product simplification integration capability. We have a program of work, which Campbell talked about earlier, which is planning on consolidating all of IDabless heritage products in by the end of 2021. That is a mid sure, capability that we have stood up and is running very effectively, with the additional specialist resources from an MLC and ANZ PNI, We've able to augment that and continue that program of work to integrate the products and services quickly and leverage the technology investment we have made with it as a whole. Frank Lombardo talked to you about how we've transformed our client service model or the client first. The foundations of this approach can now be extended to improve the service Our investment in growing and developing our financial education well-being program can be extended to, again, can be extended to both MLC and A and Z PNI clients, which as Frank mentioned, will be in excess of a million customers following the completion of the NLC acquisition. To achieve all of that, we have scaled up our core integration capability. Which we developed for the integration of the ANZ PNI business, which I'll I'll cover now in a little bit more detail. IWF has had a long and successful history of acquiring, businesses and integrating those businesses. And I've certainly been involved in in quite a number of those integrations. But as we've grown and changed, we've adapted our approach to be fit for purpose. And with the acquisition of the ANZ PNI Business, a transformation and integration management office was established, which had included specialized and experienced resources in large scale business integrations. With the following the acquisition of MLC, we reviewed the, this current structure that we had in place, and we further scaled up this capability with the creation of a standalone transformation division being led by myself, reporting directly to the CEO. With a large program of work, with a number of individual work streams underway, to ensure that we can complete the MLC acquisition as fast as possible, separate both MLC and the ANZPI businesses from their respective bank parents and integrate the 3 businesses operations together to maximize the capabilities and realize the synergy benefits. We've resourced up with an additional 40 new roles being added to our transformation capability since the acquisition of MLC was announced. These people will support our experienced business leads from within the organization at night of the Earth. The way we approach, integration is very much supporting our existing underlying business layers that have a lot of experience in in integrations that layer that you see at the bottom of this slide around source knowledge and expertise for individual streams. We're adding experienced resources around them to support them in the in the leading of the transformation. To deliver Again, this is a very, very high level one. I just want to go through some of the key, milestone. The important thing is here that we, you know, our our integration activities and transformation are remaining on track. We completed the full, acquisition of the ANZ PNI business on the 31st January this year, And as you'll see at the moment, we're on we're on track to complete the acquisition of the MLC, business by before 30 June next year. In both of these acquisitions, the 1st phase that we enter is 1 called Protect and Serve. This means taking a proactive approach to ensure that the client's experience is not affected in any way as a result of the acquisition, making sure that all that people can come in and do their their job from day one that the change experience for our people is is minimized as much as possible following the the completion of the acquisition that the client experience is not adjusted or changed. We do that through, identifying key talent and knowledge within the business and making sure that frontline teams are fully supported, through those initial phases. Secondly, we need to make sure that any remediation act activities that are underway, continued and worked through that pace. We bring our experience to those programs of work to close them out in a timely manner and ensure that processes are simplified to prevent, further remediation in future for clients. Whilst doing that, we're working in parallel to plan out our broader integration road map, through sort of product and technology. You'll see seen earlier today, it's gotta feed down through and into that evolved program of work. So we have a program that's already running. We will pivot that program to include the ANZPNI product set and also the MLC product set to leverage off the technology investment we have made. We will, as part of that program, also consider, you know, where appropriate to insource or outsource, depending on how fast we're removing where our capabilities lie. It will be a multi year program of work but as we've described, we have a program that's been stood up. It's progressing well already with the integration of IWF products and services will that will bring in experienced people from both ANZPNI and MLC to assist with that. We believe we can move at pace with integrating the products and services from our acquired, businesses. The next question I think is around, well, how fast are we moving and what sort of progress are we making towards that? Some proof points we can provide today as shown on the slide here. So we announced the acquisition of NLC on the 31st August, 2020 since that point in time We have successfully lodged our submission with the A CCC who are now, and we expect to receive the response on that on the 4th February. That date may move out, but it might move in depending on, responses that the agency received from their public, with you. We've we've, funded the acquisition through a combination of equity and debt. We've successfully were able to do that, we have also agreed on the joint transaction implementation plan with NLC and now, on 4th November, so we've moved quickly to to mobilize, And we've submitted our 1st draft, our section 29, aprochanger control application, on 9th November. We're now working collaboratively with Afra to finalize that application, and we'll have a better sense of sort of when APra approval, is likely to be received as we sort of progress through that process. All this means that we are very much on track of preparing for a completion as early as the end of March, but it may be, you know, we're expecting that between sort of April June, but we will be prepared for a separation, oh, sorry, completion as early as the end of of March, 2021, because we, you know, we have everything in all the wheels are in motion, and we're moving with pace Another area we've been asked that has been some interest is, how our engagement is going with with advisers, with the MLC adviser group, there was a lot of activities for some from some competitors in the market. We're pleased to say we're on track with our, retention efforts with MLC Advisors, and we expect to be able to retain the vast majority. I think Darren, we're announced it shortly after the announcement went out that, you know, we're not arrogant enough to think we will get every single adviser, but we think we'll get the vast majority this chart shows, you know, we moved into it and mobilized very quickly into an engagement program to cover the 1050 adviser practices, ensure that we went out and we listened, to what their needs were. So we engaged and we listened with the advisors, cross 1053 and also the the Godfrey Pembroke group and the and the salaried advice channel through, MLC as well. What that enables us to do is perform a compelling offer that enabled the ease of transition or remove friction for advisors, provided continuity of things that matter to them. So key processes, technology, and supported them through the change, and recognize the importance of communities and brands and advisors. And so we're very pleased with our progress, and we believe we're definitely on track with our retention efforts here. I think an excellent proof point of that was the recent, press release from, from Doctor. Pembroke where their, practice development group indicated their intention to to join IWLF. IWLF has demonstrated a commitment and strong belief to the value of advice. And and so we, you know, we do believe that advisors and listening to advisors means that there we are a very strong chance of retaining the vast majority of Aposomer remain on track in this space. We completed the full completion of ANZ P and I on the 31st January this year, and our integration activities for that remain on track. Since February, we've been working today and separate out the business and progressively transfer people out of transitional services arrangements and and across an insight of less employment. By the end of the year, we'll have around 75% staff, under transferred through to wider Bluff. And we have plans already locked in for the first quarter of next year to transfer further operational staff cross and fly to Bullhead. And then in the slide, I think that everybody wants to see, which is around how we're tracking on the scoreboard and the numbers, there has been really strong progress on, in this space. So how does it translate? I think we could have turned today, and there would have been a number of reasons why we could have justified a delay in, in synergy benefits that, you know, we we completed the full ANZ PNI transaction on the 31st January this year. We then got hit with a global pandemic. We made a successful bid for MLC, So it would have been easy to turn up and say, look, we've been distracted by, COVID, we could be distracted by a bit for MLC. Pleasingly, that has not slowed our progress. We're on track to deliver cumulative annualized synergies of $43,000,000 in FY21 with 25,000,000 as of new initiatives delivered during this year, this financial year. That means that around 50% of the overall synergy targets would have been realized from the full data completion, the 31st January, 2020. At this stage, the, you know, the total synergy target for an of $150,000,000 of that target. We're expecting, you know, we're targeting a range of around $65,000,000 to $80,000,000 in the full year following completion. It depends on when that date, ultimately falls, but that's sort of full 12 months, but we're expecting $65,000,000 to $80,000,000 of annualized synergies to be realized in that in that 1st full 12 months. And following the completion, we'll look to sort of wrap we will be wrapping the 2 integrations together and providing consolidated, ongoing consolidated reporting. We do look forward, to continuing to provide regular sort of updates as our, to our progress here, and the key message from this slide is we're remaining on track with our synergy realization. So just to summarize before I hand over to Bill, the Acquisition of MLC is highly complimentary to Iowa's businesses and can leverage the strategy and investments we've been making in advice, technology, people, and process. We're on track to complete the MLC acquisition before 30, June 2021. We're on track with our advisor engagement program. I'm very confident with the progress. And we're also on track with our integration of the ANZP and I business. We're very confident in our ability to execute on the combined MLC and IWF and PNI integration, and we look forward to providing regular updates as we progress. With that, I will hand over to Mel. Great. Thank you, Chris, and good afternoon, everybody. I'm Mel Walls, as Chris said, I'm the chief people officer. And it's a great opportunity today to have to talk to you about, the culture at IdahoF and how we're thinking about that through integration. So I'm gonna cover today a little bit about the IWS culture, but also how we're seeing that play out, both with the integration that has occurred as well as that that's coming. Before I do that, I'll just give you a little bit of, context on myself. So I've been at IWM for 14 months now, I have, 20 years experience in HR, and Chris mentioned there are some of the executive team who have Nav and MLC experience So I'm one of those people. I had 9 years at NAB, predominantly in the business bank in HR and business roles. So I wanna start off just giving you a little bit of a sense about, our culture at I.wolf. So if I can just get the next slide, And some of my observations when I first joined the organization, when I came in, I suppose one of the questions on my mind was what shape was the culture in and how fractured had it become in that post Royal Commission environment? And I was actually quite pleasantly surprised to find that the culture was in good shape and what I described as the core of the culture being really strong and as I spoke to people and and observed what was going on, it really came down to a couple of things. So one was this real purpose led, genuinely purpose led attitude that existed in the business at all levels, and the client first culture, which was palpable in the organisation, I know that many organizations and many that I've worked in have client first or customer first or customer centric kind of programs. But I haven't seen one like this where client first is alive every day in the decisions and actions that people are taking from top to bottom that guide the way that work is done in the business. And for that reason, we really see culture as a unique differentiator and competitive advantage for the organization, I think as context for this session is, the ecosystem in which we're, executing everything we've talked about and what gives us the confidence to feel that we we can achieve what we're laying out. The other thing I've observed is there's actually really strong cultural alignment, across the organization. And that's not just from an observation perspective, but we've done, quite a lot of die cultural diagnostic work over the last 6 months. That I'll talk through a little bit more in a moment. And you might expect from a business that's grown up through acquisitions to have subcultures or different ways of working. In actual fact, the cultural alignment that you observe, the attitudes, the beliefs are are observably quite strong strongly aligned, but also through the diagnostic work we did came out as being, also very aligned. But although we recognize we have a cot strong culture, we also recognize that there was an opportunity to really invest in making that very, very clear and being very deliberate about the actions we take on culture to make it fit for purpose for the future and the organization will be So I'll talk a second in some of that, diagnostic work and work, deliberate work that we're doing to help to dial up our culture. So at the heart of this client first culture and what makes it so unique, are a few things that I'd like to, give you a bit of insight on. So the first one is about being client centered ah, sorry, people centered. And I think that plays out in a number of ways. So firstly, We've touched on terms like empowerment and responsibility, but there's a real concept in client first about, putting decision making authority and the ability to service a customer, a client in the hands of those closest to them, that sense of empowerment and ability to, make something better for somebody else really gives a great sense of purpose and achievement to those delivering work the work. And what we've seen is the that they're really flourishing in that environment. It also means for our clients that it's not a cookie cutter approach. People have the ability to, be serviced on their needs, and that looks different for every person person. So as you listen to our client calls, it's really, you know, one person having another conversation with another person. It's very real, and it's it's very human. The other thing is delivering what matters. So there's a real focus on cutting out waste, cutting out noise, keeping things simple, and just delivering what it is that's gonna make difference, to the customer and ensuring that we deliver to that every time and again, putting that decision making authority in the hands of those who can get that done quickest One of the things we hear most commonly from new people joining joining the organization is just, reflections on how there's a lack of bureaucracy and how flat the structure is. And that's something we do deliberately to ensure that people are able to escalate concerns, questions, decisions get made quickly, and that there's no bureaucracy or hierarchy slowing down the ability for things to get executed quickly. And the other hallmark of, IWM that I've noticed is this real agile culture and having worked in a number of transformation environments, it's something that more traditional organizations are always trying to build in but culturally, it's really hard to achieve. I double Earth has that through the history of the way that it's grown up, but the ability to adapt quickly to change direction and to respond really rapidly to changing environments, not just externally, but self driven determinations of things that need to be done differently. And what we're seeing is as this client first culture really grows and amplifies that this is playing out in very positive proof points to our people. So from our last engagement survey, which was conducted in May this year, which was post the PNI integration, our engagement scores went up 12 points to 71, and other factors also measured in the survey also move very pod positively, like long term direction, senior leadership, performance, focus, and alignment, and alignment is about this extent to which people are feeling that we're all on the same page and moving in the right direction. Diversity inclusion is also, looking very positive through the way that we measure in in engagement. I've pulled out the gender differences engagement there, but across a number of different gender segments that we measure, we're seeing that people experiencing the co culture positively, despite what kind of backgrounds or groups they may fit into. So they're both our males and females scoring 71% on engagement. Just to note on those scores, I appreciate if you're not in, these surveys all the time, some of those scores mean a lot, but just to highlight, the senior leadership score, at 71% places is in the top decile. This aisle, most of the other scores are in the top quartile, engagements in just one or two points, outside that. So that's a bit of a snapshot of, kind of our proof points of culture, but just a few things on what our people are saying on the next slide. And there's a real sense of pride and, noticeable support for the way the culture is evolving and helping people feel like they're getting the best out of themselves at IWM. So pride is a word you hear a lot when people talk about IWF. There's a real commitment and personal connection to the organization, but also they're appreciating particularly through, COVID, but through all the change that we've been through over few years, that sense of support and that the employee experience, along with client 1st culture, is really being prioritized and amplified in the way that we're developing. So if we move to the next slide now, I'll just talk a little bit about, some of the diagnostic work, which I touched on briefly before. So as I mentioned, we feel like there's a really strong core of culture there, but we wanted to do some work to just make sure that we're really clear in the way that we're communicating that to people and really deliberate in the way that we wanna, continue to evolve our culture to be fit for purpose in the future. So we engaged an external partner to help us do some of that diagnostic work, which involved, surveys, some focus groups and interviews with the board executive team, frontline staff, broader employee base, and also our customers. One of the observations made through that partner who do this work as their core business was just the level of consistency that came through across all the segments of our business top to bottom and across different areas of the business about how consistently the organization is perceived. So again, that sense of great alignment about what it means to work at IdahoF. What came through in terms of what we call cultural archetype was that the organizational driver for us was about belonging or being an every person organization. And what that means is that for an every person organization, we prioritize work or ways of working, that mean customers feel that they're reassured and supported in what they need. So put another way that we cater to the needs of every person despite the differences that they may present with. And from an organization for perspective in our employees, what that means is that you're free to be yourself. You don't have to fit a certain stereotype to belong at IWS, We welcome and include difference. We want people to fit in for who they are and is, in fact, part of what makes the organization a rich tapestry that we want everybody to be the best version of themselves, which we believe will be the real version of themselves. And so, we believe through this culture, it's one that is very accepting and inclusive of all types of people, and again, really helps to nature nurture a culture of diversity and inclusion and welcome people from different types of backgrounds. Again, we're seeing that play out very positively in some of the integration that's occurred to date. So on the right of this slide is just some proof points around culture that sometimes get lost as we talk about synergies and numbers, but what's the people experience that's taking place behind some of that synergy realization? And I think it's heartening to see what the employee's experience is. So some of our, X ANZ employees have been here for the longest period. So through the, the ANZ advice transfer, we've seen engagement uplift 22% through that period to 76 which places that score in the top, quartile. When reading the change processes post, their transition, our X ANZ employees rated, an 80%, agree on I don't know if have a positive and welcoming culture and overall assess the change experience to be a good one. And through the poll servers that we've done regularly with our entire workforce, the P and I employees, just as a touchpoint, rated 88% on average across our well-being and support measures, again, reinforcing that they're feeling well supported in our environment. I think talent is also, of an important part of the way that cultural integration occurs. And I think these two steps below really show, how well that is occurring. So X ANZ employees make up 30% of our senior management roles in IWA. And the turnover rate we've seen of transferring aims at employees is below industry, comparisons at, 8 just over 8% So we know that we're seeing some positive proof points on integration, and that gives us real confidence for the future. But if we jump to the next slide, I can just talk you through a little bit more about the way that we're thinking about doing this at a at a bigger scale. The work that we've done today on really defining and and communicating our culture has been really helpful in in preparing us to transition a whole lot of people across to IWM. And there's 3 areas we're focusing on in particular to help people make that transition successfully. So the first one is clarity. So being really clear about our culture, our expectations, and the principles that guide how we all work every day, Again, that's not to say everybody has to fit the cookie cutter, but we need to make sure that people understand what it means to work in a client first culture. Then there's context, which is about making sure that people understand and can individualize what our culture means for their work and their role. And that's really about making it real for them and ensuring that they understand what a client first culture means, even if they're in a role that is not touch in co customers on a regular basis. And then finally, convergence, which is about seeing culture play out in all their ways of working. So the underlying ways of working and sit stems, and processes so that this isn't just lip service. It's not just something that's, talked about and put on posters, but it's something they feel playing out in a one way, same way consistently across the whole organization to really bring it to life. In the meantime, what we've been doing over the last few months, if we jump to the last slide is starting to do work with MLC to ensure that they're understanding what the culture at IWF looks like. And part of that is really, focused around communication. So from the 1st day following announcement, of the deal. So on 1st September, we had a whole of company, webinar with, the workforce at MLC, and that's continued each month, and it's getting about and a half thousand people attending those sessions. And we have lots of just open questions, which is something that's very emblematic of the way that we interact with our own, I don't believe existing workforce, where Renato has a weekly webinar with our people, just very open and conversational where everyone has the ability to questions and have the things answered real time, and that's something we're starting to do with MLC. We're also introducing less formal engagement channels where we're having lunch and learn sessions or leader led engagement just in a more intimate session setting to allow people to up start to understand what will the future look like and how do I fit into that picture? So far, this has result resulted in very positive feedback, on communications, MLC employees are are typically saying through the surveys run by MLC that they're feeling optimistic and really curious to find out more about what future holds. Part of the feedback we've received from both, MLC, but also through the ANZ work and reflections that we've done is about the importance of feeling that they belong to a dedicated wealth management organization, and that goes again to that part of a belonging organization that rather than being part of a a bank that's, much more diverse that to feel they're part of an organization that's dedicated and the whole purpose is around wealth management and financial well-being is something that gives a great sense of comfort in being part of that. Our focus is we support people through change obviously, that's big one of the biggest priorities for all of us is again continuing to make sure that we've got regular communication and giving people as much clarity about what the future holds as continuing to make sure that we've we're open and sharing as much as we can as soon as we can. The other key to change is making sure that we can move with pace through change, people don't sit well with uncertainties. So the longest keep people in an uncertain space the worst that that plays out from a morale perspective. So trying to give certainty and move continue to move the change with pace is a priority for us. And I think finally, just that at IWM, because of the history of the business, change management is very much part of the DNA of all leaders of of all people. So it's not something that gets outsourced or is, put outside for somebody else to do. Whether that's running up to talk to teams or understanding the importance of being able to give clarity or or move with pace, these are the decisions that everybody in management roles understands from their history and is very much part of the way that they do work. So I think the while there's a long way to go, there's some strong plans in place to make sure that we're really supporting people as we move through the change that lays ahead in the coming months. I'm going to leave it there, but I'm happy to take questions, as we move into the final Q and A, but for now, I'll hand back to Renato for some closing remarks. Thanks, Mel. And, and thank you, everyone. We are reaching the the end of the session. And it's and it's been a lengthy session. I think we've we've covered a lot of ground, over the last 3 or so hours. And what we've, in fact, covered, are really some deep dives across the 3 pillars of our continued strategic transformation as a business. I think it creates a very unique opportunity in the Australian context, increased relevance in the community, and I think increased growth prospects for the business both for the business itself and obviously, obviously, translating to to earnings growth over the medium term. Just to close that and really wrap up some of the key messages out of today before opening up to questions. From advice 2.0, we heard Darren talk about the importance of through the 3 pillars in the model the own owned and operated model, the self, self employed licensing model, and then the self license model, heard that MLC actually brings us to around 300 employed advisors in the owned and operated model, and the commitment to 30% EBIT margins and obviously a healthy and large, continued, self employed model. In the evolve session, we heard about the importance of one single operating platform crossover clients and really serving the clients through their life journey and really the importance of service and service excellence as as a key differentiator and really that target of being a top 3 both in terms of NPS, but importantly, the Wealth Insights, key metrics. And finally, we're here from Chris and Mel talking about the transformation through integration reiterating that we remain on track on all the key metrics despite some of the challenges of this year's and and as I started with, in fact, think this year has presented some real opportunities for us as a group, and I think it's been really pleasing for us to to sow the seeds and really capitalize on those opportunities over the past 12 months And we're really confident that with these priorities needs and this strategic focus, we're actually placing ourselves really well to to deliver on the promises, not only short term, but importantly, medium and longer term as well. So with that, I I do sincerely wanna thank you for your time. It's been it's been a big investment of your time, and, we'll open up to questions, Rachel. Thank you, Renato, and welcome back to all of the presenters. So operator, if you could just ensure that all presenters from today are allowed into this, meeting room, that would be great. To kick off, well, we have, Mel and Chris, a couple questions on transformation. Chris, synergy realization is fundamental to the success of the MOC transaction from a shareholder perspective. Are you really that confident in the synergy target in the current volatile COVID-nineteen environment? I think the, the best evidence proof point on that is is our current experience with ANZP and I, which we showed today, we're on track in in respect of the synergy realization with that acquisition, which has been achieved in a COVID environment. So we are confident. Great. Thank you, Chris. And Mel, COVID has had a massive impact on all staff. Have you seen a lot of turnover during the COVID period? And how do you go about making people redundant in such challenging times for the both emotionally and financially? Sure. Yeah. Look, it has acknowledging it has been a really difficult period, but sometimes challenge brings opportunity. And so I think in some ways, it's allowed us to really dial up our visible support for people and ensuring we're we're taking through this journey safely and we've been running webinars and well-being sessions to help them feel that supporter and deal with the circumstances they they might be facing. We've actually seen turnover drop, so it's below 8% now for the broader eye to blow organization. Dealing with redundancy in in these as it is always is is tough. And so what we do is make sure that we do it with as much respect and care as we can possibly deliver to support people through these tough decisions Great. Thank you guys. Some questions on advice, and we'll probably jump around as the questions come through. I apologize in advance. But Renato won for you. Renato talked about his ambition to have lowest cost to serve. Will those benefits be passed on clients through lower pricing to grow market share and continue to stabilize the business or is that about expanding profitability? So so, Rich, so that question really goes to the heart of our our our platform strategy and platform business. And I'll I'll make touch on advice, separately, but really important we we, differentiate the different strategies for different parts of our business. So, absolutely, we we are committed to ensuring we have lowest cost to serve in our platform administration business. I think much of what you heard through today, whether it was from cable or or Frank or Sharon or Mark is about sitting in the infrastructure, the mindset, and the capabilities to be able to deliver that. I think historically, it's something we've done very, very well. We've done that through simplifying businesses. We've done that through increasing our scale for acquisition. So in fact, we're very confident we can we can replicate that going forward. On the advice side of the business, the the dynamics and the strategy are a little different. And I'll say that because we're not seeing upline pressure downwards on the cost of advice to clients. If anything, that there is a real risk that the cost of advice to clients goes up the other way. Why is that? Well, fundamentally, we believe that the advice interaction is the most valuable part of the interaction for the end client. As we saw in the survey results, they value advice. There is no downward pressure. So the advice is actually about reducing the cost of delivery to allow a for reinvestment to be for realization of an economically viable business model. So the advice industry in the past was not an economically viable business model as a standalone. We do think that there are economics there. We do think we can extract those through the owned and operated model. And that's the primary purpose. The primary purpose is absolutely to make sure we can generate a return for our shareholders. Likewise, though, by reducing the cost of the delivery cost to serve, we open ourselves up to serve a different cohort that may in fact not currently be able to afford it. So we actually build an opportunity for ourselves to expand the target market, or the addressable market through advice. Great. Thanks, Renato. A similar question in a slightly different way. If the goal is to remove the cross subsidization across the model, why is breakeven unacceptable at come for the self employed model. And what benefit do investors get from running a model that only targets breakeven? So the breakeven in the self employed model, is the current target simply because it reduces our marginal cost to serve. I think to the earlier question, which Darren answered, if you're serving more advisors, if you're serving 1500 advisors for argument's sake, the marginal cost per advisor is lower than if you're serving 400 or 500 advisors. So by reducing the marginal cost to serve, it does in fact have a positive effect and a positive outcome on our owned and operated model, It also creates a really healthy, what I call, platform effect or network effect in your advice community, having different ideas, different visions, working with different advisors, actually, it makes our business a more vibrant business. I think to to simply back one part of the model, I think it's somewhat myopic to the richness of advice. And in fact, some of the best ideas we have and and as as Darren suggested, some of the wealth central developments have come from the advisors themselves. So putting out of voice at the center of that advice community, I think, makes us a better business. With, Darren, Wealth Central seems to deliver a lot of efficiency benefits. If those are flowing through to the self employed advisor can't you monetize that rather than just targeting the breakeven? Thank you for the question. Look, I think the the breakeven is our first target, as I was talking about earlier, we wanna prove out technology, show the advisors in that self employed space, the benefits of partnering with us through greater efficiencies. From that, the next conversation, post breaking even is about a fair exchange for monetization. In respect to the technology. So we're not gonna put the car before the horse could ask for more. We're gonna prove it out breakeven because that was our stated goal. And then I think we start up with a very different conversation, one about genuine partnership and the genuine exchange of fair value in respect to what we're saving in their business. Right. Another couple of questions for you Darren from James. Becoming more efficient and pulling cost out is needed to deliver an improved EBITDA margin. But how do you weigh that up against offering cheaper advice and hence opening up the growth opportunity to the 4 out of 5 that don't have advice seems like conflicting goals and how should we think about them together? Yep. Well, the way I'm thinking about it is twofold. But first of all, we've got one in five people that currently engage with advice, and the research shows us that they get a huge benefit both emotionally and, financially. That for me is what we would call the traditional advice. And so we're about reducing the cost of preparing that advice, and we've spoken to that that today in respect of how we're going to do that through the technology. I think the competing priorities would be if you were to cannibalize that market and say, right. Well, we're gonna make it at a lower price point. What we're actually saying is we feel we can offer a different experience. You can't have the same experience for a high net worth investor as you would do for somebody with more modest means And so what we're attempting to do through our technology is come up with a new model that will engage with 1, another segment of the population that currently doesn't do it. But it won't be the same offer. It won't be apples and apples. It will be a different solution, still advice in the best interest, but we'll be preparing it in a different way and delivering a different way. So what it's actually about, it's complimentary because we're looking to grow the demand for advice. And if you contrast that with the reducing number of authorized representatives throughout the industry that are able to provide advice. That's where we really think this opportunity to use technology to open up a market that currently isn't being serviced is afforded to those brave enough to go down that path. Rachel, just just to follow-up on that, I think it's a really important Darramax, which is this isn't just about making it cheaper just to to deliver, which is a priority. I think to really succeed, and we've seen this in other industries, we need to transform how it's delivered. So we need to do it differently. And and I think there's plenty of lessons, whether it's in the entertainment, the media industry, whether it's retail, it's not just using technology to do it cheaper. You need to do it differently, and you need to do it in a more meaningful way to your consumers. Sure. Because actually the next question Renato from James was any more color on current cost I'm sorry, the current cost of advice and how low you think you can get it. So I think that it leads back to your similar comment. Yeah. Look, absolutely. It's it's making sure that, a, you're you're making the delivery process as efficient as possible is sort of the first objective, the second objective is making sure that each advice interaction is each fit for purpose. So for example, if you're serving a thirty year old with 2 young kids in a mortgage who wants to, wants a subscription model, that it has to be a different delivery model and different different delivery process then I I someone who's going to retirement, who's a high net worth. What I would say though, it will all leverage up the same infrastructure. Making sure that infrastructure is modular is is really important. So you as as we said, so the marginal cost to serve continues to drop. Great. Thanks, Renato. Sharon, a question for you has come through on the platform. You are an also technology company. How will you keep up with the latest technology trends and the spend required to keep your technology upmarket best? You don't need to be a technology company to do those things. The fact of the matter is that we do invest quite heavily in technology as a company in order to serve our business. And, because we don't outsource our core platforms, we have to make that investment. As a result, you know, we have quite a, quite a strong capability on par with, some of the best startups in the market in terms of keeping up with the latest and greatest, tools and technologies to build our systems. So I think, I think given at the size of our investment, given the size of our team, Relative to the overall size of the company, we are well placed to ensure that we have access to the best technology going forward. Right. Can I just just to add to that one as well? Sorry. I think the the complexities in Wealth Management, and Financial Services more broadly not be underestimated. So having that domain expertise embedded in technologies are critical importance. So whilst know, whether I whether we are or are not a technology company, technology is a core enabler for our business, and it's not simply something you can outsource. And and I think there's plenty to prove to point in recent history that those that have proprietary technology have meant the forefront of the evolution of the industry. And, Renato, just to add to that from my perspective, I mean, the spend is still quite significant. We we spend over $40,000,000 a year, and that's in terms of genuine sort of technology development. That's not including about another 40 we spend externally on on servers and third parties. So it it's it's sort of quite a sizable spend. I guess the difference is unlike a lot of companies you don't see it going through CapEx because we we we put that through OpEx. So certainly we feel that there's been a strong investment there. A great point from Dave. Mark, what do you consider to be the key strengths and weaknesses of Evolve versus its principal competitors? And kind of compete in all market segments? So I think the the key strengths, as we've outlined, is really that it is designed, with the customer back and the adviser back. So it's, it's reflecting what the modern day, consumer need is and what the modern adviser needs, I think that's unique in the marketplace, and and also acknowledges that client's needs will change through time, and the corrosive effects of, you know, moving your wealth around the system is actually one which is still to be brought to life with clients. So I think there's tremendous value in that. In terms of weaknesses, we would we would rather be further along than we are today, but we're going at a good pace. And, we've got some ambitious goals ahead. But otherwise, I genuinely think we've got something which is really compelling and differentiated and has built fit for the future. As say, as Saram, able to talk through the modern technology stack that underpins all our systems and processes and functionality, is is future fit It's not we haven't just put a shiny front end on old technology. So I think there's some substantial differentiation there. I'm sorry. I forgot the last part of your question, Rachel. So kind of compete in all market segments. We generally believe it can. And, and and we intend to do so, and we are doing so today. I think we've got a unique opportunity there to continue on that track. Great. Thank you, Mark. Renato, a question for you regarding financial wellness. And Renato talked about wanting to do more for those entering the workforce. Can you monetize that in the near term, or is this about lengthening the customer relationship with the dividends of those long relationships more likely coming over the longer term when they can pay for it? So it's a it's a combination. So in a simplest form, we already have relationships with those people entering the workforce. We do that through our employee super footprint. Now admittedly, that's through a product relationship. That said, there there is an opportunity that through those relationships, to contribute more insights, more customization and more personalization to those members via the product. I think to to the hypothesis that I think was being said, what we expect is that we expect to build in gender more equity, more goodwill in that relationship, which does mean that you extend the relationship. And at those critical points in time, they are more likely to opt into advice. We'd like to think because they have a better understanding of what advice actually means. And we think we see the current challenge in the, in the advice relationship is that it's it's got a very high barrier to entry. I so I've described it as a as a binary industry, the advice industry, where you pay every you pay a lot and get everything or you pay nothing and get nothing. So we need to break that down and to allow people to consume it on a fit for purpose basis, which so not only does it extend the product relationship, we think it actually provides opens up that that target market if you like with the addressable market for advice. Great. Thanks, Renato. Mel, a question for you, when you were talking about giving people clarity, are you able to let MLCU or audible off stop the audible off staff know now If they will have a role at IWF under the merged group, or do you have to wait until the transaction is completed? We're working through that now. So, certainly, it's not something we we want to do or be in a position to do until we have the appropriate approvals in place. But around the time of completion, we will be in a position to share more about what that integrated org design would look like. Great. Thanks, Mel. Chris, one for you on transformation actually might be for David Chalmers as well. To what extent is P and I integration impacting revenue margins? And when will you be able to quantify margin expectations? So I'm happy to pick that one up. I mean, in terms of what we've seen in the integration work so far, we're not seeing that impact impact margins. A lot of that is coming through those efficiencies of putting the 2 teams together. I I think it's it's a separate issue around, and we've talked around what what we see around the flows of P and I and what we're looking to do there, that I think is a separate decision or discussion to what we're seeing in the synergies. So specifically on the synergies though, I wouldn't see that as being a trade off between, you know, we're getting cost out at the cost of margin. Great. Thank you, David. 1, Renato, on overall strategy, MLCN substantial investment management capabilities will you retain these businesses? Can you unlock value by potentially selling these assets? So the asset management business, and if you follow the history available we've had a a variety of different, exposures to that space from perennial, which were we founded perennial. We grew perennial as at the time of leading boutique, and then, divested it. We've clearly got our exposure in more recent times. We've limited our exposure to the multi manager and what I call investment on solution packaging arena, we we continue to learn more around that business. So we're continuing to deepened our knowledge, of the boutiques of Jana, of the broader footprint. So we're not really anything in or out at the moment other than to say that having proprietary investment capability has always been called to RWA. The nature and the footprint of that has has changed over time, and and we'll make an appropriate assessment over the coming coming months between now and completion. Great. Thanks, Renato. Further question received via via the platform. I note that neither MLC or IWMF are getting substantial net flows. How do you stop the targeted scale disappearing over time? And I think that, the the flow's point would relate to MOC and P and I. Mark, I might pass to you to start on that one and then maybe Renato to give some over overarching views Yeah. No, I think, in plain English, we were mindful to the, flow trajectory of both business when we acquired them, and so whilst we, continue to bring everything together in a single platform we are mindful of addressing some of the drivers of those flows, we don't need to wait for, the product rationalization or or system rationalization necessarily to do that. So we'll continue to address them appropriately, in the products that they have, but I think the main point is we we observe that trend, you know, when we acquired these businesses and and of fact that Latin accordingly. Right. Yeah. Look, clearly agree with Mark. The other piece I would add is that, we we should not lose sight of the fact that the the 4 major banks were large participants in this marketplace up until probably a couple of years ago, and that they had been in that marketplace for between the decade or 2, let's call it 20 years. And one of the reasons they're they're divested, they've come to the realization that it's very difficult to run a wealth business when your core business is banking. There has been under investment, and I think that under investment has manifested itself in, yes, their clients leaving the incumbents and and to to other players and particularly a a couple, you know, new entrants. So this is as much around the incumbents being able to deliver what matters to the advisers. And I think I'd like to think that from what we've spoken through today, we have a core capability we've invested in heavily over the past 5 years, it's scalable, and he's actually positioning to be that incumbent that can deliver to those, those requirements And not only is it retaining what it has, it is in fact growing, new client relationships. So I think it's it's somewhat misleading and and potentially dangerous to draw a parallel of what the banks did and just just equate that to our our future direction. Oh, great. Thank you, Renato. And with one minute to go, a final question, and then again, it's to you, Renato. So you have had this number of exact changes this here, some of whom we've seen on today's webinar, how is this new team positioned to deliver synergies? I do believe as a business has a strong track record. But what are your thoughts about this newly appointed team? Thanks for the question, Rachel. I I'm I'm the first to acknowledge that as executive we have the privilege of taking credit for a lot of work from a lot of people throughout the organization and the depth of knowledge where frankly the real domain expertise exists around dealing with really complex issues. I've been really pleased with the addition of the new executives. I think they bring a fresh look on our culture, a fresh look on our capabilities, and a challenge with an organization as a whole, in a way, it's consistent with our cultural settings, but really challenging ourselves to to set ourselves and set our capabilities for a much a business and and one that can continue to excel. So, that knowledge exists in the business. Yes. There's been changed in the executives, but I but I think that's generally been additive. Great. Well, thank you all for your time today. With that, it's 1 o'clock. So the briefing is has ended. Please do feel free to shoot through any questions via email. Happy to engage later on this afternoon. So thank you all for your time. Thank you for dialing in, and I look forward to speaking soon. Thank you all.

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