Good morning, everyone, and welcome to the Reece 2026 AGM. I am Peter Wilson, and I am the Chair and CEO of Reece. Thank you, Alicia, for sharing the acknowledgment of country with us. I have been informed that a quorum of members is present, and I declare the meeting open. With us today is Independent Director Gavin Street, Angela Mentis, Andrew Wilson, and Bruce Wilson.
In the studio with me is Independent Lead Director Tim Ford, Chair of the Remuneration Committee, Jacqueline Chow, Company Secretary Chantelle Duffy, and Group President and Managing Director, Sasha Nikolic. Our audit partners from KPMG and our CFO, Andy Young, are also here and available to answer questions today. Let us look at the agenda. Firstly, I will deliver my address, and then we will hear from Sash before moving to the formal business as set out in the notice of meeting.
After that, there will be an opportunity for questions. I will now hand over to Chantelle to go through the procedures for today.
Thank you, Peter. The meeting today is intended to provide you with an opportunity to participate by asking questions and voting via the online platform. Today's resolutions will be decided by a poll, and voting on all items of business is now open. Voting will close 5 minutes after the meeting finishes. If you are eligible to vote, please press the vote icon, and all resolutions will be activated.
To cast your vote, select an option, for, against, or abstain, and once submitted, you will receive a confirmation notification on your screen. You can change your vote at any time during the meeting until voting closes. Please note, voting exclusions apply to some of the resolutions today. These exclusions have been outlined in the notice of meeting. We will respond to questions from shareholders after the formal items of business are complete.
Online questions can be submitted at any time by selecting the Q&A icon and typing your question into the text box. If you would like to call in and ask a question verbally, follow the instructions in the platform, and you will be asked to hold until transferred live into the meeting. If you have any difficulties voting or asking questions, please consult the online meeting guide or call the help number in the Computershare platform. I will now hand back to Peter to deliver his Chair and CEO address.
Thanks, Chantelle. Many of you will be familiar with Reece's history from humble beginnings in 1920 as a hardware business. In 1969, my family became the majority shareholder in Reece. At the time, Reece had just two stores in Caulfield and Clayton. We saw rapid growth through the '80s and '90s, and I joined Reece during this period in 1993 as we expanded nationally.
In the 2000s, we kept growing, and I became the CEO at the end of 2007 as we transformed Reece into a world-class business and brand. Fast-forward to today, we are an international business generating AUD 9.4 billion of revenue, with operations across Australia, New Zealand, and the U.S., with over 9,000 team members. We've achieved this firstly by focusing on our blueprint from purpose to promise.
Our purpose and values shape the decisions we make every day, big and small, and this is what we call The Reece Way. Our 2030 vision reflects a clear ambition to be our trade's most valuable partner by being easy to do business with in every branch, on every screen, every day. We bring this to life through our three strategic priorities: operational excellence, breakthrough innovation, and investing for profitable growth.
The blueprint culminates in the delivery of our customer promise, which is what we call customized service. Throughout our history, we've always taken a long-term view to growing the business. This approach, supported by our ownership structure and blueprint, has enabled us to build to the position we are in today.
Our ANZ business demonstrates how we've benefited from this strategy, and in the U.S., we are eight years in, and we will continue to take this approach to build the foundations to be successful over the long term. Turning to our performance this financial year, Sash will provide more detail shortly, but in summary, we have delivered sales revenue of AUD 9.4 billion, which was up 4.5% on the prior year.
We saw higher volumes and a small contribution from inflation in ANZ as a solid pipeline of activity continued. In the U.S., where conditions were more challenging as weak new residential construction continued to impact demand, EBIT was down 2.6% to AUD 534 million. Earnings per share increased to AUD 0.495, and return on capital was 11.9%, which was up five basis points compared to the prior year.
Total dividends increased 2.6% to AUD 0.1884 per share, fully franked, supported by the share buyback. Turning now to the board. We've continued to reshape the board, bringing in skills and expertise that will help deliver on our future ambitions while maintaining the benefits of our ownership structure, that our ownership structure has delivered.
In practice, this makes us look quite different to many other ASX-listed companies. We embrace this because it is one of the reasons for our success. During the year, we saw Jacqueline Chow take up her role as Remuneration Committee Chair, the appointment of Tim Ford as Lead Independent Director, whilst Angela Mentis retired from the board. I'd like to take this opportunity to thank Angela for her contribution, and we do wish her well and all the best for her future.
Tim's appointment was a clear milestone with his strong background in leadership, including in the U.S., and he will bring valuable operational expertise to the board table while providing an independent voice for minority shareholders. As ever, our focus is on finding directors who are the right long-term fit for Reece. I will now hand over to Sasha to provide further detail on FY 2026.
Thanks, Peter. Turning to FY 2026 in more detail. We delivered sales revenue of AUD 9.4 billion, which was up 4.5% on prior year. EBITDA was flat at AUD 901 million, and EBIT was down 2.6% to AUD 534 million. As Peter mentioned, in ANZ, sales were up 8.3%, driven by higher volumes with a 2% inflation contribution. In the U.S., sales were up 6.5%, driven by continuing network expansion and a 2% inflation contribution.
Like-for-like sales in the U.S. were down 1.7% as weak new residential construction continued to impact demand. Our net leverage ratio was down to one times EBITDA, driven by strong operational cash flow. While demand in the U.S. remains challenging, FY 2026 was a year of stabilization, and we will continue to build the foundations in order to strengthen the business and its resilience over the long term.
Across the business, we remain laser-focused on making progress towards our 2030 vision. This included executing on the fundamentals of our business while focusing on customers and delivering the service we are known for.
T o achieve this, we continued to invest in our people by building capabilities through learning and development programs, and we developed digital initiatives that make Reece easier to do business with. We also continued investing in our network to improve standards and formats, and opened a next-generation bathroom showroom in ANZ while continuing to build scale and density in the U.S. It's also worth reflecting on the growth in the eight years since we acquired our U.S. business. In that time, we have significantly grown our network, our team, and improved the customer experience.
This year, we rolled out a record number of branches and now have 292 across the U.S. Sun Belt, an increase of 121 since 2018. While there is still a lot more to do, we are laying the foundations for a stronger business for the long term. I will now hand back to Peter, who will provide a trading update for the first quarter of FY 2027. But before I do, we will play a short video of our recent Brand Bold campaign in the U.S. Three years after introducing the brand in the region, Brand Bold proudly showcases the customer service proposition.
Okay, thanks, Sasha. Now turning to the Q1 update for FY 2027. We have delivered sales of AUD 2.5 billion, up 4.3% on a reported basis, and up 8.7% on a constant currency basis. In ANZ, sales were up 12.8%, driven by continued momentum in volumes and a mid-single-digit contribution from inflation.
This strong performance has been supported by the pipeline of existing activity. In the U.S., sales were up 5.6%, driven by network expansion and low single-digit inflation. Like-for-like sales, excluding network expansion, was up 2.4%.
The U.S. has remained soft, with the subdued residential new construction market continuing to impact our business. Looking ahead, we are expecting a strong first half for ANZ and a continuation of the challenging environment in the U.S. Given the complexity of the current environment, we remain cautious on the second half of FY 2027. Now we will start the formal business of the meeting.
Voting is open. If shareholders have nominated the Chair as proxy, I will direct all open usable votes in accordance with the board recommendations. The first item of business is to receive and consider the financial reports, including the financial statements and sustainability report for the Reece Group and its controlled entities, together with the Director's report and the independent auditor's report for the year ended 30th of June, 2026.
These documents are now tabled. There is no shareholder resolution required for this item. Before we move to items two to eight, I will ask Tim Ford to introduce himself. Tim joined the board in April as the Lead Independent Director. He has also joined the Remuneration Committee, the Audit and Risk Committee, the U.S. board, and he brings valuable operational and international expertise, and has been a great addition to our board.
Thanks, Peter, and good morning, everybody. I would like to take a couple of minutes to share what attracted me to the Reece board, my views of the business six months in, and some early thoughts about the role I play as the Lead Independent Director. There are a few things that attracted me to join the team at Reece.
Firstly, I have known Peter for a number of years and have always admired his leadership and the quality of the business that he and his team have built over decades. More specifically, Reece is a values-led business, both here in Australia and also in the United States, with an exceptionally strong customer service focus, a distinctive culture, and a genuine commitment to developing its people. In my experience, those things matter enormously to short, medium, and long-term success.
Finally, I was attracted to the unique nature of the business in the ASX landscape, with a large family shareholder base who take a very long-term view to being a steward of the company's future. This means Reece is really well-placed to make strategic decisions for long-term success over multiple decades. Now turning to some observations six months into this role.
My key takeaway is The Reece Way is not just a marketing slogan, it is real. I have seen it in action across every level of the business, whether that is around the board table, in a distribution center, or on the branch counter in Carrollton, in Dallas. This business has impressive people capability and experience, and is underpinned by what are first-class development programs and a commitment to growing from within.
It's a very professionally run and well-led business, performing through the strength of its service model and its branch network in an external market today that is largely an unfavorable cycle. My view is there are still enormous, numerous opportunities for sustainable long-term growth for Reece across all markets and business verticals.
Now turning to my role as the lead independent. With Pete, the board, and I have co-designed this role to make sure it's an effective one. Our first obligation as board members, as I see it, is to bring our own personal experiences from having played on the field to add strategic value and insight to Reece and to support the leadership team.
We act as a sounding board for management, have input to, supporting of, and where appropriate, challenging the views on the next growth phase for this company, its current day challenges, and the choices the company will make to deal with all of these. In terms of my background, that means drawing on my recent executive experience in complex supply chains, international distribution, while sharing thoughts and learnings about building consistent customer-centric cultures across different geographical regions.
On top of that, the independent directors and myself in particular will provide appropriate and constructive input to governance processes and the board dynamics, and will ensure the continual development of the leadership capability across the senior teams, and generally act as an independent counterweight voice in the room to represent the minority shareholders and the broader range of stakeholders.
In summary, our job as directors, as I see it, is to provide valuable insight, expertise, and when needed, challenge to help the management team lead and grow this business without losing what got it here, its customer and service-focused business model, its people, and its values-driven culture.
Okay, thank you, Tim. Now moving to items 2 to 8, which relate to director elections. The biographies of the directors are included in the notice of meeting, and displayed on the screen as I read out each item, are the proxies received.
The board supports each election. Item 2 is to re-elect me as a director. Item 3 is to elect Tim Ford as a director. Item 4 is to re-elect Gavin Street as a director. Item 5, to re-elect Jacqueline Chow as a director. Item 6 is to re-elect Andrew Wilson as a director. Item 7 is to re-elect Bruce Wilson as a director. Item 8 is to re-elect Sasha Nikolic as a director. Now I'd like to hand over to our Remuneration Committee Chair, Jacqueline Chow.
Thanks, Peter. Good morning, everyone. I am delighted to be here today, and it is a privilege to serve as Chair of the Remuneration Committee. The next two items on the agenda for shareholder vote is the Remuneration Report and the Reece 2030 Remuneration Framework for our three key management personnel. I would just like to say a few words on these items before the voting is finalized.
After I commenced in my role on the board and as Chair of the Remuneration Committee last year, and following the second strike against the remuneration report at the 2025 AGM, I undertook a review of key management personnel remuneration. We consulted with stakeholders and benchmarked against our peers, including internationally, through this process. As a founder-led business with a different ownership structure and a significant footprint in North America, we heard support through our engagement for taking a different approach.
In moving to a single, longer-dated LTI framework spanning five years, our three KMPs, that is our key management personnel, have foregone annual STIs and put a significant amount of their remuneration at risk in favor of ambitious targets, and therefore aligning themselves with shareholders. The LTI opportunity is higher than in past years to reflect this increased risk.
We acknowledge that the new framework is relatively unique in the Australian market, but it was a deliberate and considered choice that we believe will deliver good outcome for shareholders if our 2030 strategy is achieved. I will now move to the ninth item of business, which is to adopt the remuneration report for the year ended 30 June 2026. This is a non-binding vote. The board unanimously recommend shareholders vote for this item.
Displayed on the screen are the details of the proxies received in relation to the adoption of the 2026 remuneration report. Our largest shareholder, the aggregated Wilson family holding, which represents over 70%, is precluded from voting on this item. The final item on the agenda for today is the Reece 2030 Remuneration Framework. The board is seeking shareholder endorsement of the framework. This resolution is advisory only and is intended to provide shareholders with an opportunity to express their views on the framework.
The board unanimously recommend shareholders vote for this item. Displayed on the screen are the details of the proxies received in relation to the adoption of the 2030 Remuneration Framework. While the aggregated Wilson family holding are able to vote on this item, on the slide, you can see the outcome of the vote excluding this holding. I will now hand back to Peter.
Thank you, Jack. We acknowledge that we have received a strike on our remuneration report. I would like to reassure shareholders that we do take this seriously, and we will keep engaging to understand the concerns. We will now open the meeting to all members to ask questions or make any comments, and I will hand over to Chantelle to read out the questions.
Thank you, Peter. The first question today is from Stephen Mayne. "If Peter Wilson wants to continue with putting all of his non-executive Directors up for election each year, could he please include himself on the slate next year?
While I support annual Director elections generally, I am a bit nervous about it at Reece because it means the controlling family could potentially threaten to remove any independent Director who spoke up too much at every AGM. In light of this, could you please return to the usual three-yearly election cycles for independent Directors and perhaps keep putting the Wilson family Directors up for election every year?
Well, thanks, Stephen, and I think we took your feedback last year, and I did put myself up for re-election, so you will see that. Look, I think it is only a recent move to the annual elections, and I think it is working well. I said last year it is a moot point because of the family owning over 70% of the business. For me personally, I think it is actually working well.
The board is not a finished product. We will always look to continue to make sure we are adding the right skills and expertise, and I think it allows Directors, if they want, to step away, and it allows me to continue to look to improve. So, I think actually, it is working very well for us.
Okay. The next question is from Mrs. Janet Somerville. "What has been the impact of AI? How many full-time staff are currently working with AI, and what have been the advantages of using AI?
Thank you, Janet. Yes, we have over 9,000 team members, and look, it is early days, but our intention is to embed AI right throughout the entire business, which I think everyone will be looking to do. And our goal is to use AI to make life easier for our people and for our customers. So, it is a big objective. There is a lot of work going on, a lot of training, a lot of AI tools that are being rolled out. So, very early stages, but we are getting started.
The next question is from Mr. Stephen Mayne. "Could Peter Wilson and Gavin Street please both comment on whether Gavin should be classified as an independent director? Isn't he a friend of the family, having been their handpicked and trusted Reece Company Secretary and CFO for many years?
A test of friendship is often measured by home visits." How many Wilson family homes has Gavin visited over the years? Does he regard any members of the Wilson family as personal friends, and has he historically been invited to Wilson family functions?
Again, thanks, Steven. I do not believe Gavin has been to any family homes. I also would say, I would not say he is a personal friend. It is a working relationship. He was a CFO. He is independent, if you know him. Anyone knows him and his character and his independence. He has been the CEO of an electrical distributor the prior three years.
He is now the CEO MD of Vulcan Steel. So, he is independent in his own right. He does not need the money. He is here, he knows the risk, and he has got exceptional integrity. As far as I know, I do not think he has visited any family home. So, hopefully that answers it.
The next question is from Mr. Brian Bender. Do you consider the entry into the U.S. several years ago has been a success?
Thank you, Brian. That is a good question. We are eight years in, and I said at the start for everyone who was with us back then that this would be a multi-decade story, and do not invest with us if you are not prepared to go really long term. In terms of is it successful yet, I think we are making progress. I would say on the whole, yes, we are being successful.
If you go back to what our market cap was before the U.S., I think it was AUD 3.5 billion-AUD 4 billion. Our market cap is AUD 10 billion now. So, I feel even on that metric, which is not the one that is driving us, that is really the outcome, you would see it as being successful. But it is early days. We are only eight years in. It's not going to be a straight line, as we've highlighted in the past 18 months, but we are making progress.
The next question is from Mr. Stephen Mayne. At last year's AGM, Executive Chair Peter Wilson said that his father, Emeritus Chair Alan Wilson, could basically do what he likes and does attend board meetings. 12 months on, Alan is now 85 and presumably slowing down a bit.
What overall portion of full board meeting time did Alan Wilson attend over the past year, and where would he rank in terms of contributing to the debate? How does his current contribution compare to when he was an executive chair? Significantly lower and not in the top 50%, or only modestly lower to that extent that he remains one of the most influential people at board meetings? Also, does he have his own dedicated office at Reece's head office with a dedicated executive assistant?
Thanks, Steven. My personal view is significantly lower. He really is an observer. Very rarely would ask a question. I'm not sure that he was at every board meeting. But when I was saying that, it was really, I think he earned the right to be able to do what he wanted to do.
Look, for the most part, his love and enjoyment is actually in visiting branches. Customers and people love him. He's just had a week golf trip. So, it is significantly lower, and yes, he's slowing down, although he's still pretty good for 86, which he was two days ago on his golf trip. So, he really is an observer, Steven.
The next comment is from Mrs. Janet Somerville. "My plumber uses you exclusively and had a delivery to my house on Wednesday. It saves him time and me money. Well done, Reece.
Thanks, Janet.
The next question is from Mr. Stephen Mayne. In terms of the Australian operation, how many enterprise agreements with unions does our company have across the business, and were we impacted by the various industrial law changes by the federal government, such as the right to disconnect and same job, same pay rules? JB Hi-Fi, Baby Bunting, and Domino's all said at recent AGMs that they pay award wages and have no enterprise agreements and virtually non-existent union membership amongst its workforce. Is it the same at Reece? Also, do unions have any presence in our New Zealand and U.S. operations?
Thanks again, Stephen. No, with the way we've set the business up, which is very much people first, service orientated, there are no industrial agreements. We pay above award. We are fortunate that we play our own game, and really it is all about team, teamwork, leadership, and we are quite unique in that respect for a company our size. Hopefully that continues.
The next question is from the Australian Shareholders Association, represented by Peter Aird, a volunteer. Your revised remuneration framework has the LTI divided between performance rights and options. Can you please explain the reasons for including options in the LTI rather than the normal approach of 100% performance rights? If the options vest, are you planning to provide loans to the affected KMPs in order for them to take advantage of the options?
Thanks for giving us on the rem. I will hand it over to Jack.
Sure, thanks. Thank you for the question, Peter. We considered that the business is operating in both Australia, New Zealand, and the U.S., so it is more common options in the U.S. When we consulted with proxy firms as well as institutional investors, we felt where we landed with the 50/50 balance of rights and options is just the right balance for risk and reward for the Reece KMP, and also with shareholder outcomes and alignment.
Thanks, Jac.
The next question is from Peter Eard, a volunteer from the Australian Shareholders Association. "Today, I hold proxies from 26 shareholders for over 499,000 shares. I am disappointed to note that you are again running a virtual-only AGM. We are pleased that you have responded to the strike against your remuneration report in 2025 and have made a number of significant changes.
However, the ASA remains concerned at the quantum of the CEO fixed remuneration. You have indicated that you benchmarked against a market capitalization ASX group and a select group of 16 listed peer companies predominantly located in North America. Unfortunately, I was not able to find the list of these companies in the remuneration report.
However, I am familiar with some of the ASX companies of similar market capitalization to Reece who have substantial U.S. business, BlueScope Steel and Orica, who pay their CEOs significantly less than your fixed rem of AUD 2.5 million. Would you please explain why you set the fixed rem higher than these companies, and would you commit to publishing the details of the peer companies?
Peter, long question, good question. I think there are two in that, so I will take the first one. I think, look, from the AGM format, I think this is our studio. This is in our, we call it The Works, but our support center here in Cremorne. So, it is very efficient, it is very effective, and I think it works really well for Reece. So, I think we are going to continue down this track. We are obviously getting a growing shareholder base in the U.S. So, for me personally, I think it is very effective. On the second one, which is linked to rem, I will hand it back to Jacqueline.
Yeah, thanks. Thanks, Peter. Peter, your question, like my last answer, because we also operate in the U.S., we do external benchmarking for fixed pay in both jurisdictions, so that was the comparator group of like organizations in trade distribution and industrials. Thanks for your feedback. We will take that on board for consideration.
Okay. Thanks, Jacqueline. Thanks, Peter.
The next question is from Peter Eard, again from the ASA. "The options performance measure in the remuneration framework is relative total shareholder return at or above an undemanding 50th percentile against the ASX peer group. Are the members of this peer group disclosed in the remuneration report? If not, will you disclose them?
Over to you, Jacqueline.
Yeah, I'll do that because it's rem. Thank you, Peter. That's a good question. So, that's a gate, your reference to that. So, that's got to clear achieving the ASX 200 median on the total shareholder return, and then there are some pretty tough performance hurdles to clear to determine whether there's vesting or not. So, that's just an insurance for shareholders.
Thanks, Peter.
The next question is from Mrs. Janet Somerville. "KPMG have been our auditors. Do they rotate their audit partner? How much do they charge? Are they acting in our best interest given the poor recent actions on whistleblowers?
Okay. Thank you, Janet. Good question. I'm going to Do you want to We'll try and break it up here.
I'll take that one.
Do you want to have a go?
Yes.
Chantelle?
Thank you for the question, Mrs. Janet Somerville. The answer is yes, they do rotate their audit partners. Susan Bell is the new audit partner, and she signed the first audit report for FY 2026, so she was new to the account for the FY 2026 year.
How much do they charge? They charge AUD 1.8 million for the audit, and there is some additional charges that were disclosed in the annual report, and that relates to other services such as sustainability, modern slavery, work they do with us there. Are they acting in our best interest given the recent actions on whistleblowers?
That is something that the Remuneration Committee and board have considered during this time, and they have discussed it with KPMG, and they are comfortable with the level of service provided by KPMG. The team is of high quality, the service provided to us is high quality, and so we are comfortable with them being our auditors.
I would just add, I mean, we only moved to KPMG. We did a very competitive tender when we did the American acquisition, so our policy is to do that every 10 years, so that will be coming again. We are very comfortable with the service that KPMG are providing. Good question.
The next question is from Peter Eard, again from the ASA. "I note that you conduct an internal review of the performance of the board annually, but you seem to lose independent directors on a regular basis. Ross McEwan and Megan Quinn last year, and Angela Mentis this year. Would you consider appointing an external consultant to review the board dynamics and performance?
Again, good question. I think that there is some. If we take some of the parts of the question, with Megan, her time was, she was getting close to 10 years. With Ross, he had his commitments to BHP. We have had external consultants come and do the review, give recommendations.
That is part of why we went to a new remuneration framework where we forgo our STI and then went all in on an ambitious LTI, which has got a lot of risk and obviously some pretty big hurdles. I mean, we are constantly looking to get better, and as I said, the board is not a finished product. It is like any high-performing team, this is how I see it, most high-performing teams, be it business, sport, are always looking to add skills, make changes. There is nothing that lasts forever.
I actually think we are doing well, and we obviously had a big transition when my father stepped away, and so I think we have done well. If you look at what we have done in the last year, we have got Gavin Street now head of ARC. Jack's head of the RemCo. We have just brought in Tim as lead independent. So, and obviously with Ange, she has chosen to pursue other interests, and she has been a director that is very easy to work with, very collaborative, as I said before. And she has also got an independent voice. So, I think where we are at, I think, is in a good spot for Reece.
Okay. The next question is from Peter Eard, a volunteer from the ASA. Given the importance of the U.S. to your future performance, and noting Tim Ford's international experience, are you considering the appointment of a U.S.-based independent director?
It's a good question. I think one thing, Peter, that we set up when we bought Morsco, we've created a separate board for the U.S., and that is largely dominated by very experienced U.S. trade distribution experts, all with deep expertise, who've been CEOs, been chairs. I feel we're in actually pretty good shape from a governance perspective and a strategy part for the U.S. I'm definitely open to.
Obviously, there will be changes again in the next year for our board as we continue to find that finished product. If I can get the right person who fits the culture and can add skills, I'd be open to it. We're definitely in good shape in the U.S. from a board perspective.
The next question is also from Peter from ASA. How are you developing appropriate AI literacy at board level and throughout the company, and what steps have you taken to improve your data protection?
There's three questions there. I think, look, we want to be the AI-enabled business, which starts at the board as well. We are using AI in our board meetings. We're doing a little bit of training. Clearly a big part of, I mean, we want to embed AI throughout the entire business, so the board is getting up to speed from our exec about what our AI plans are.
Again, I think it's work in progress. It's moving at a great speed. Yeah, I think for us in our sector, I think we're doing okay. Obviously, when you're in my spot, I would like us to be able to go faster, and I guess like any leader of any business. We are making progress, and it'll be interesting to see where we are in a year and 18 months' time.
Okay. The next question is from Mr. Yonton Widjana and Ms. Mela Widjana. I hope I didn't mispronounce those names. How is the diesel price crisis affecting businesses in Australia and the U.S.A.?
Yeah. Again, I think that's definitely a topical question, and I think it is having an impact. We are, I mean, they are flowing through both from a distribution perspective and also to some of our commodity prices like PVC and copper, which then flow onto a lot of our product range. So, there is inflationary pressures in our business as a result of that. That's here and in the U.S. and New Zealand. Yeah, the Iran war's having a big impact on the world.
The next question is from Mr. Stephen Mayne. Which proxy advisors recommended against the Rem Report, and what reasons did they give? Also, well done to the Wilson family for not voting on the last item when they could have. This is good practice and respectful of independent shareholders.
Thank you, Steven. Thank you for the compliment. It's appreciated. Chantelle, you can answer the proxy one.
Okay. Thank you, Steven. Just in summary, Ownership Matters and ACSI both were supportive of voting for the remuneration report, and ISS and Glass Lewis recommended voting against the remuneration report. Key reasons were really quantum and the opportunity for shareholders to vote on the grant before it was issued.
Yeah. Given the unique nature of what we have done, I think, from my perspective, that is actually a pretty good outcome. I think it shows that we have consulted well, and I think, Jack, you have done a good job with others as well. Thank you.
Peter, there are no more questions.
Okay. Thanks, Chantelle. As there are no further questions, we will allow another couple of minutes for votes to be cast. While we do this, we are going to play a short video about some of the great work achieved by the Reece Foundation this year on their Water for Recovery project, following the Victorian bushfires last summer.
[Voting]
Thank you, and we're very proud of the foundation. Since being established almost five years ago, over 160,000 people have been impacted by the work they do. As there is no further business, I will now close the meeting. Voting results will be released to the ASX later today. Thank you very much for attending the Reece AGM.