Good morning, ladies and gentlemen. I am Vik Bansal , the Chairman and Director of the Board of LGI, and it is my pleasure to welcome you to the company's 2025 AGM. Before we begin the meeting, I would like to acknowledge the traditional owners of the lands from which you are joining this meeting and pay my respects to the elders, past and present. I will now introduce you to my fellow directors who are here with me: Mr. Adam Bloomer, who's sitting on my left-hand side; Dr. Jessica North; Mr. Tim McGavin, who is not here but he's online; Mr. Andrew Peters; and Ms. Abigail Cheadle. I can also introduce our Chief Executive Officer, Mr. Jarryd Doran; our CFO and Co-Sec, Mr. Dean Wilkinson; our Co-Sec, Ms. Pia Russell; and our company auditors, being here represented by Ms. Stephanie Ponting.
We are also joined by representatives of the company share registry and Computershare. No written questions were submitted from shareholders for BDO with respect to the conduct of the audit and the auditor's report as per the process set out for this in the notice of the AGM. However, I am certain that BDO would be pleased to address any questions shareholders might have during the meeting. It is now just past 11 , the nominated time for the AGM meeting, and I'm advised that a quorum for shareholders is present. I'm pleased to declare the meeting open. Before we deal with the formal business of the meeting, I would like to provide shareholders with an update about the company's progress in the 2025 financial year and our outlook for the current financial year. My address will be followed by the presentation from our Managing Director, Adam Bloomer.
Financial year 2025 is another example of LGI delivering to its commitment. Before I start, I want to thank all our shareholders for their support to recent equity sales and the share placement. LGI continues to grow, signing six new contracts over the period. Half of these contracts are for long-term landfill gas rights, which LGI will monetize to create ACCUs. The remaining contract is for a battery energy storage system to be built, owned and operated by LGI on the closed landfill at Belrose in Northern Sydney. In addition to the new signed contracts, LGI has been able to vary an existing contract and agree to the extended terms. LGI increased its electricity capacity by 44% from 14.7 MW under management in FY 2025 and finishing the year with 21.1 MWs.
Our Canberra Power Station increased generation capacity by 50% and commissioned the 4-MW Eastern Creek Power Station in Sydney. Both the Canberra and Sydney projects were delivered on time and in budget, demonstrating increased project management capabilities within a complex regulatory framework. Stage two of the Canberra facility upgrade to incorporate 12 MW/24 MW of battery capacity is very well advanced. Tesla batteries and transformers are outside. Work is well advanced, preparing the AEMO application for full registration of the power station. During the year, LGI added Grafton to our operating carbon projects, bringing the number of operating carbon projects at the year to 17. At the time of announcing our recent equity raise, LGI updated the near-term development pipeline to over 80 MW of its projects in execution and project development.
The last year saw the drafting of new landfill gas carbon abatement methodologies, which the Clean Energy Regulator is working to implement by the calendar year end of 2025. LGI is supportive of new methodology, which only rewards abatement achieved for all landfill gas projects above baseline established industry-wide. This is an important step forward for improved integrity in our industry. Due to legacy reasons, some of the largest landfills in Australia have lower-than-default baselines, while newer projects assessed under more recent methodologies have received higher-than-default baselines. This proposed new methodology will see a more consistent approach applied when determining baselines to all landfill gas projects when registering under the new method. The LGI management team has done an excellent job throughout the year, delivering on key power station projects, securing new contracts, all while maintaining a very strong focus on customer and markets.
I would like to thank all of our LGI staff and my fellow directors for another strong performance this year, delivering projects while maintaining focus on the operational side of the business, as well as providing valuable service to its stakeholders. Lastly, thank you to all our shareholders again for your support for the company and our mission to expedite the transition to renewables by delivering clean energy and lower carbon solutions. I'll now hand over to Mr. Bloomer.
Thanks, Vik. Good morning to everybody, and thanks for joining us on our fourth AGM. It's pretty amazing how quickly that's gone by. I think I'm just getting old. By all metrics, FY 2025 is a solid year for LGI. We've achieved new highs for all of our key operational drivers: safety, biogas recovery, through to megawatt hours and ACCU creation. LGI continues to achieve availability rates over 95%. LGI is focused on investing in our people, assets, parts, and parts inventory. This is demonstrated by our FY 2025 availability, achieving 98% across the generation fleet, which is pretty phenomenal. LGI continues to develop and refine our proprietary Dynamic Asset Control System, or DACS, as our fleet of assets is evolving. The development of the DACS system is staying one step ahead. Our overall volume of generation has reached over 100 GWh annually, equivalent to powering 24,000 Australian homes.
Our people and their safety is our highest priority when planning and undertaking our work. With an increasing team and an increase in overall hours worked across the business, our team focuses on safety, resulting in zero lost-time injuries in FY 2025. Biogas recovery has continued to increase with over 127 million cu m of gas extracted from our long-term landfill gas sites, an 11% increase year- on- year. We generated over 109,000 MWh of electricity across our fleet for renewable power stations in FY 2025, which included generation for our two new units at Canberra and a new power station at Eastern Creek. This represents a 13% increase from our FY 2024 performance. In FY 2025, we created more than 493,000 Australian Carbon Credit Units, or ACCUs, across 17 carbon abatement projects registered under the ACCU scheme, representing a 14% increase compared to FY 2024.
The company's strong operational performance is reflected in our financial results for FY 2025. We increased net revenue by 10% compared to FY 2024 to achieve AUD 33.9 million in FY 2025. EBITDA increased by 14% to AUD 17.4 million. The Australian government recently announced a 2030 emissions reduction target of 62%-75%, with a focus on achieving 82% renewable electricity generation by 2030. This key policy agenda is driving the electricity transition away from coal-fired power stations more towards wind and solar as lower-emission intensity sources of generation. Whilst wind and solar generators are environmentally friendly, they further increase the volatility of the wholesale electricity market due to the influence of weather, meaning that the grid is becoming more volatile.
Observing this change over the past decade, LGI is strategically positioning its assets for flexibility to both protect our assets from downside pricing and achieve improved financial outcomes through embracing volatility by generating into higher prices. Our portfolio of geographically diverse and increasingly flexible and responsive energy assets connected to existing distribution networks are well positioned to take advantage of this volatility. LGI's low-cost, 24/7, highly responsive assets, in combination with our DACS system, puts us in a rare position in the national electricity market. Looking out to FY 2026, LGI is confirming its guidance, underlining EBITDA is expected to grow by 25%-30% versus FY 2025, subject to market dynamics and timing issues outside the control of the company. The performance of FY 2025 would not have been possible without the hard work and dedication of our team.
Everyone is contributing to LGI's ongoing success: the teams working on the gas fields, our asset teams, project delivery teams, business development team, and people supporting our business. I also thank our board for their guidance throughout the year. Finally, thank you to all our customers and shareholders for continuing to support LGI. Back to Mr. Bansal.
Thank you, Adam. A copy of these addresses and the AGM presentation have been lodged with the ASX and will be published on the company website. This meeting is being held as a hybrid meeting, with shareholders able to attend either in person or online via the Computershare meeting platform. Shareholders online can listen to a live webcast and watch our presentation. They can also ask questions and submit reports online. We will now move to question and answer and voting process of the meeting. Given this is a hybrid meeting, with shareholders able to attend either online or in person, there are a few matters I need to run through. Only shareholders, representatives, and attorneys of the shareholders and proxy holders who are attending in person today and holding blue admission cards, and those attending online are entitled to ask questions or vote during this meeting.
For attendees attending in person to ask a question, you will need to raise your hand when I invite questions at the appropriate time. Online attendees can submit questions at any time by selecting the Q&A icon on your device. Select the topic your question relates to from the drop-down box, then type your question into the chat box at the bottom of the screen and press the send button. Online attendees can also ask verbal questions by following the instructions written below the broadcast window. Although online shareholders can submit questions at any time, I will only address those questions at the relevant time during the meeting. If we receive multiple similar questions on the topic, we will try to group them together. I will ask Ms. Russell to read out the question at the appropriate time.
On voting process, voting today will be conducted by a poll on all items of business, and I'll open the voting shortly. For attendees present in person, on the reverse of your blue admission card is your voting paper. I'll show you that. It's this one. You will need to follow the instruction, mark the box beside the motion on the voting paper to indicate how you wish to cast your vote, and then lodge it in the ballot box before voting closes. Proxy holders here in person have attached to their blue admission cards a summary of their proxy votes, which detail their voting instructions. By completing the voting paper, you will be deemed to have voted in accordance with those instructions.
Proxy holders who are entitled to cast any open votes will need to mark a box beside the motion to indicate how you wish to cast your open votes. For attendees online, a vote icon will appear on your device when voting opens. Clicking on the icon will bring up the list of all the motions that present you with voting options. To vote, select your voting direction. A tick will appear to confirm receipt of your vote. To change your vote, select "Click here to change your vote" and press a different option to override. You simply select one of the options for the relevant motion to cast your vote. There is no need to hit the submit or enter button, as the vote is automatically recorded. You may change your vote at any time up until I declare voting closed.
All attendees, whether online or in person, may submit votes at any time from when voting opens until I declare that voting has closed. Finally, I appoint Lewis Brimelow of Computershare Investor services to be the returning officer, and he is present here to conduct the poll for the meeting. Formal business of the meeting. We will now progress to that. I have been informed that the notice of meeting was appropriately sent to all registered shareholders and I now table the notice of the meeting. Unless there are any objections, I will take the notice of this meeting as read. The first item of the business of this meeting is consideration of audited financial statements and related reports for the year ending 30th of June 2025.
Although shareholders are not required to formally vote on the company's financial related reports, I welcome any discussion or questions on that report. There is no formal resolution required for this item, and the resolution appears on the screen. I will take that. Take it as being read. As I mentioned previously, the company auditors are BDO, and Ms. Stephanie Ponting is here. She is responsible for the audit of the financial statements, is present at the meeting today, and is willing and able to answer any questions on the conduct of the auditor or the conduct of the report. I'll now invite any questions or comments on the financial report for the directors and the auditors' reports for the year ending 30th of June 2025. I ask shareholders who are present in person today if they have any questions on the financial reports.
If there are no further questions from shareholders attending in person, I ask shareholders attending online if there are any questions.
No questions have been received online.
Okay. As there are no further questions, I will now move on to the next item. The next item is the remuneration report. It's thought fit the adoption of the remuneration report as a non-binding resolution. The resolution appears on the screen, and I will take it as being read. A summary of valid proxies received for the resolution are shown on the screens. The board recommends you please vote in favor of the resolution. In my capacity as Chair, I intend to vote all open proxies in favor of the resolution. I will now open the meeting up to a question in relation to this item. I'll ask shareholders who are present in person today if they have any questions related to the remuneration report.
If there are no further questions from shareholders attending in person, I ask shareholders attending online if there are any questions on this item of the business.
No questions have been received online.
Thank you. As there are no further questions, can I please request you lodge your vote on the resolution? I will now move on to item three. Item three is reelection of our Director, Ms. Abigail Cheadle. Ms. Abigail Cheadle, who was appointed as an NED or Non-Executive Director on 12th of April 2021 and was last reelected as a Director at 2022 AGM. Under this resolution, Ms. Cheadle has elected to retire by rotation and, being eligible, seeks reelection as a Director of the company this AGM. Abigail is a Non-Executive Director and Audit & Risk Committee Chair for us. Abigail is currently Chair and NED of Shriro Holdings, the ARC Chair and NED of Reef Casino Trust, and ARC Chair and NED of AIS Limited.
She has also served as a member of the Audit & R isk Committee of the Queensland Department of Transport and Main Roads as an NED of six other ASX-listed companies, holding positions as Chair, ARC Chair, RNC Chair, and on large unlisted public companies and government-owned entities. Her industry expertise spans technology, renewable energy, infrastructure, finance, professional services, and consumer production. Abigail brings 30 years of international experience across Australia, Asia, Russia, and Jordan. She has held senior executive roles, including partner with Kroll, Boda Menta, Deloitte, and Ernst & Young, where she built and grew practices across Asia in corporate finance and risk management, most notably driving the more than ten-fold increase in the market capitalization of BFI Finance PLC Indonesia during her tenure. Abigail holds a Bachelor's of Business Accountancy from Queensland University of Technology, is a chartered accountant, and a graduate of Singapore Institute of Directors' Course.
The board believes that Ms. Cheadle's depth of experience and knowledge will continue to help LGI to create shareholder value. The resolution appears on the screen, and I will take it as being read. The board recommends you vote in favor of the resolution, and in my capacity as Chair, I intend to vote all open proxies in favor of this resolution. A summary of valid proxies received for the resolution I shall now show on the screen. I will now open the meeting to question and ask shareholders who are present in person today if they have any questions on this item.
In the future, can we just have the directors say a few words at the meeting and that?
Sure.
You read out her experience and all of that sort of thing, but it'd be nice to hear from the actual director.
Okay. Thank you for that. Any other questions? If there are no further questions from shareholders, I ask shareholders attending online if there are any questions on this item of the business.
Yes, we've received one question on this item, but we've also received a request from Mr. Mayne to put a question on the SPP before the question for Abby's reelection. Are you happy for me to read out that question?
Sure.
What was the total value of SPP applications from the 470 shareholders applied? Given that you had 1,342 eligible shareholders, AUD 5 million was always an unreasonable cap. Given that all shareholders applied for the maximum AUD 30,000, you would have received AUD 40.6 million in total applications. Very few companies refused to disclose that total SPP applications when applying a scale back. So what was the number?
Okay. Thank you for the question. Just clarifying, at the SPP record date of October 22nd, LGI had 1,342 shareholders that were eligible to participate in the SPP. LGI received applications from 470 shareholders, so not all of 1,342, which was expected. The total money raised through the SPP was AUD 9.8 million, which was then scaled back to AUD 4.9 million. That is how it worked. It was not AUD 40 million. The return was 2x. The institutional shareholders' money received was 4x, which was scaled back accordingly.
Thank you. Should I read out the question?
Yes, please.
What is Abigail Cheadle's personal history when it comes to treatment of retail shareholders in capital raisings? Was this week's LGI SPP scale back the first time she has been involved with a board which struck rigidly to an announced SPP cap when there were oversubscriptions? Also, could Abigail please explain how it was fair to only allocate AUD 5 million of a AUD 57 million capital raising to retail shareholders? How did we not even deserve to be given 10%?
At first.
Can we ask that you ask Abigail?
By the way, I'll answer the personal one.
Why don't we?
That is actually my first SPP on any of the 10 listed boards I've been involved in. I think just as a general point, most boards, listed boards, when they're deciding the method by which they raise, will consider a number of factors, including mix of investors, timing, cost, price, discount. I'll pass over to Vik, who may have a general board comment to make.
Yeah. Thank you for that, and thanks, Abby. I think one of the things we have to understand, this is not Abby's single decision. That was a board's decision. It is probably not right to say, "Why did Abigail sign that off?" We collectively discussed, and we landed where we landed. The secondary thing we should not forget is that it is not about just raising equity and money from the marketplace. It is about the base of what we can use. We will not do favor to our shareholders by asking them to give us more when we know very well the capacity for the organization to spend the money, because that does not do their returns any favor. We are very comfortable with the decision we made. We are very comfortable with the decision we made through raising the money through institutions as well as the SPP.
Mark, shareholders have responded in kind with a good. Any other question? Thank you. If there's no other question, I'll move into item four, which is the reelection of Director Mr. Timothy McGavin. I will take your notice for next time.
Okay.
I'll get him to speak if that's okay with you, yeah? Item four seeks to consider the election of Mr. Tim McGavin as Director of the company. Tim was appointed as a Non-Executive Director of the company on 18th of May 2011 and was last reelected as a Director at the 2023 AGM. Under this resolution, Tim has elected to retire by rotation and being eligible seeks reelection as a Director of the company at this AGM. Tim is a Non-Executive Director, not independent, and Chair of Remuneration & Nominations Committee. Tim invested into LGI Limited in 2011 as a cornerstone investor, backing Adam to execute the simple strategy of contracting as many landfills as possible for as long as possible to monetize the biogas to the highest value. He was appointed Chair of the Board from January 2018 - March 2021.
Tim is Founder and Chairman of Laguna Bay, one of the world's largest privately owned agriculture funds managers. Laguna Bay is an institutional investment management firm specializing in Australian agriculture. The firm has a strong history of originating large agriculture deals, assessing top day-sale operators, and generating superior returns for its clients. Tim is founding shareholder of Cobram Estate Olives, Cobram Estate Olives Limited, now the largest producer of extra virgin olive oil in the Southern Hemisphere. Tim holds an MBA from Macquarie University, Sydney. The directors believe that Mr. McGivern's depth of experience and knowledge will continue to help LGI create shareholders' value. The board recommends you vote in favor of the resolution, and in my capacity as a Chair, I intend to vote all open proxies in favor of the resolution. The resolution now appears on the screen, and I will take it as being read.
A summary of valid proxies received for the resolution are also shown on the screen. I will now open the meeting up for questions in relation to item four. I'll ask shareholders who are present in person today if they have any questions on this item. If there are no further questions from shareholders attending here, I ask shareholders attending online if there are any questions in item of the business. Are there any further questions?
We've received one question on reelection from Mr. Steven Mayne. Is Tim McGavin aware that more than 50 currently listed companies, including the likes of ANZ, Bank of Queensland, Wesfarmers, Telstra, GPT, and many others, have completely uncapped their SPPs in the face of strong demand? What is his personal history when it comes to treatment of retail shareholders in capital raisings? Was this week the first time he has voted to stick rigidly to an SPP cap and refused to accept any additional applications? Also, what was the scale back formula, and how did this impact his participation in the SPP?
Thank you for the question, Mr. Mayne. This is exactly the same answer I gave when we were looking for the notice for Abigail's reelection. Unfortunately, Mr. Tim is not here. He is traveling. I just want to give you again a comfort that AUD 9.8 million was collected, not the 4x as it was mentioned, number one. Number two, Tim is a very, very experienced financial executive with a deep experience of financial markets. Being a shareholder himself, he is quite conscious and very sensitive of shareholders' interests. I will make that a point as Chair and having worked with him for the last five years. The second thing is I appreciate the fact that it is not just about—I want to reinforce it again—it is not just about collecting money more from the marketplace. It is about the pace of deployment.
We genuinely believe collecting more money from the marketplace and not being able to place it properly and give returns would not have been in the best interest of shareholders. Any other questions?
No further questions on that.
As there are no further questions, can I please request you to lodge your vote in the resolution? I will now move to item five. Item five seeks to approve the proposed amendments to the company's current constitution under this resolution. The purpose of the resolution is to seek shareholders' approval to amend its constitution to ensure flexibility in managing its meeting through the use of hybrid and virtual general meetings. The board recommends you vote in favor of the resolution. In my capacity as Chair, I intend to vote all open proxies in favor of the resolutions. The resolution now appears on the screen. I will take it as being read. A summary of valid proxies received for the resolution is also shown on the screen. I'll now open the meeting up to questions in relation to item number five.
I'll ask shareholders who are present in person today if there are any questions on this item. If there are no further questions from shareholders attending in person, I ask shareholders attending online if there are any questions on this item of business.
No questions have been received on that.
As there are no further questions, can I please request you to lodge your vote on resolution? I will now move on to item six. Under the Corporations Act, proportional takeover provisions expire after three years from adoption or renewal and may then be renewed. The proportional takeover provisions in the current constitution have expired. Item six seeks the approval of shareholders to modify the constitution by renewing the proportional takeover provisions for three years under Section 648G(4) of the Corporations Act. The board recommends you please vote in favor of the resolution. In my capacity as Chair, I intend to vote all open proxies in favor of the resolution. The resolutions and the proxies received are now on the screen. I will now open the meeting up to the questions in relation to item six.
I ask shareholders who are present in person today if they have any questions on the item. If there are no further questions from shareholders attending in person, I ask shareholders attending online if there are any questions on this item of the business.
No questions have been received on that.
As there are no further questions, can I please request you lodge your vote on the resolution? I'll move now to item seven. Approval of the Omnibus Incentive Plan. On 1st of October 2022, amendments to the Corporations Act introduced a simplified framework for employee share scheme under division 1A of part 7.12, known as the new regime. This new regime applies to offers of securities made for monetary consideration and operates alongside the existing asset class order 14/1000, which governs the company's 2024 plan. To align with the new regime, the company seeks shareholders' approval for an upgraded employee incentive plan, the LGI Omnibus Incentive Plan or 2025 plan, which enables the issue of securities, including unlisted options and performance rights to eligible plan participants. The board recommends that you vote in favor of the resolution.
In my capacity as Chair, I intend to vote all open proxies in favor of this resolution. The resolution and the valid proxies received are now shown on the screen. I will now open the meeting up to questions in relation to this. I'll ask shareholders who are present in person today if they have any questions. If there are no further questions from shareholders attending in person, I'll ask shareholders attending online if there are any questions on items on this business. As there are no further questions, can I please request you lodge your vote on this resolution? Closure of voting process. Ladies and gentlemen, that brings us to the end of the formal business. I will pause the meeting to give shareholders a final opportunity to cast your votes. For those attending online, please submit your votes through the online platform.
In-person attendees need to complete and lodge your blue voting cards in the ballot box. Thank you, ladies and gentlemen. All voting is now closed. The results for all agenda items will be tallied immediately following the meeting and will be released to ASX later today. I now declare the meeting closed. I really sincerely thank all our shareholders for your participation and support for LGI and its management and its board. Thank you very much for attending. Appreciate it.