Financial Data and Key Metrics Changes - Group normalized revenue increased by 3% to AUD 541.6 million, with a notable 8% growth in the second half compared to the first half [4][13] - Normalized net profit after tax (NPATA) was AUD 103.2 million, down 4.1% year-on-year, while statutory net profit after tax rose by 6.4% to AUD 95.8 million [14][26] - The cost-to-income ratio improved by 230 basis points in the second half compared to the first half, with a full-year ratio of approximately 58.7% [5][42] Business Line Data and Key Metrics Changes - Group Remuneration Services (GRS) revenue was slightly up at AUD 293.4 million, with novated lease sales growing by 4.1% [16] - Asset Management Services (AMS) revenue increased by 4.3% to AUD 185.5 million, with written down value rising by 6.4% [21] - Participant numbers in the PSS segment grew by 10.5%, with revenue up 11.5% to AUD 56.5 million [22] Market Data and Key Metrics Changes - The EV percentage of new novated sales peaked at 56% in Q3 before stabilizing around 45% in Q4 [17] - The number of employees in the SME and corporate segments increased by 15.8%, contributing to 29% of total novated sales in FY 2025 [19] - NDIS participant growth was strong at 11.8%, with the government focusing on managing cost growth [24] Company Strategy and Development Direction - The company aims to be a trusted partner providing simple solutions across its segments, focusing on customer experience, technology enablement, and process simplification [7][10] - Key investment areas include digital and service excellence, data-driven insights, AI and automation, process simplification, and expanding the partner ecosystem [9][10] - The company is committed to sustainability, supporting the transition to a low carbon economy through initiatives like the On the Go EV charge card [14][15] Management's Comments on Operating Environment and Future Outlook - The company enters FY 2026 with strong business momentum and expects stable auto supply and used car values [33] - Cash rates are anticipated to decrease as inflation moderates, which should support customer confidence [34] - The company expects continued growth from new client wins and buoyant novated orders, alongside benefits from strategic investments [34] Other Important Information - The company invested AUD 20.8 million in growth and productivity, with AUD 6.1 million classified as nonrecurring costs [13][26] - The company maintained a strong balance sheet with no debt maturities due in the next twelve months, following a successful AUD 300 million private placement [31] Q&A Session Summary Question: Can you unpack the drivers for the improvement in novated yield? - The improvement was largely due to a higher proportion of plug-in hybrids at higher price points and a larger proportion of new vehicles being financed [37] Question: Is the 4.7% of novated leases in Olli incremental business? - Most of the new customers acquired through Olli are in employee brackets of 20 to 200, which was not previously targeted [40] Question: What should be expected for the cost-to-income ratio in FY 2026? - A fair assessment for FY 2026 would be around the 57% mark, with expectations for further benefits from productivity investments [42][44] Question: Will onboard finance be a positive contributor to NPATA for FY 2026? - It is expected to be neutral for FY 2026 but positive thereafter [45][46] Question: How will the removal of setup fees impact margins in PSS? - There will be a downward movement in margins in 2026 due to the removal of setup fees, but automation investments are expected to improve margins over time [52] Question: What is the outlook for GRS contract renewals? - Approximately 10% of the portfolio is up for renewal in the next eighteen months, with a strong pipeline for new opportunities [83]

Group 1 - Paychex is set to announce earnings at the end of June, with a consensus forecast of approximately $1.20 per share, up from $1.12 in the same quarter last year, and revenues projected to rise by about 6.5% year-over-year to $1.38 billion [1] - The growth is expected to be driven by the strength in Management Solutions and Professional Employer Organization (PEO) services, with operating margins likely trending upward due to technology and data analytics [1] - The company has a current market capitalization of $57 billion, with revenue over the past twelve months at $5.4 billion, operating profits of $2.3 billion, and net income of $1.7 billion [2] Group 2 - Historical data shows that Paychex has recorded 20 earnings data points over the past five years, with 11 positive and 9 negative one-day (1D) returns, resulting in positive 1D returns approximately 55% of the time [5] - This percentage increases to 58% when considering data from the last 3 years, with a median of 3.6% for positive returns and -4.2% for negative returns [5] - The correlation between 1D, 5D, and 21D historical returns can provide insights for traders, particularly if the 1D and 5D returns exhibit high correlation [3][4]