Eight questions asked at debut 2022 Latitude AGM

April 27, 2022

Here is the text of eight questions lodged at the 2022 Latitude Financial Group AGM, many of which were butchered by chairman Mike Tilley who insisted on reading them out himself, despite being asked not to.

1. Chairman (Mike Tilley), I last saw you at the 2019 Harvey Norman AGM where you were publicly pumping up the tyres of billionaire chairman Gerry Harvey. Was this because Harvey Norman is an important client of Latitude, because you are friends with Gerry or a combination of the two? How important is Harvey Norman to our business and how far back does the relationship with Latitude go?

Answer: Gerry and Katie are both friends and Harvey Norman is an important client.

2. The CEO and chair are both big personalities, not known for taking a backward step. Could they both comment on how the relationship is going and who on the board steps in as mediator when there is a disagreement? Ahmed, please comment on just how hands on chairman Mike is as you run this business.

Answer: that's offensive. We get on well, don't we Ahmed? (nods obediently)

3. Did any of the main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of today's resolutions? Which of the proxy advisers are covering us and has their been a material proxy protest vote against any of today's resolutions? Why didn't you disclose the proxies to the ASX with the formal addresses as requested, something that both GQG Partners and G8 Education did earlier today.

Answer: CGI did a report, no protests at all.

4. When disclosing the outcome of voting on all resolutions today, including this share grant to Humm, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative adopted by both GQG Partners and G8 Education earlier today, along with the likes of Metcash, Altium and Dexus after their 2021 AGMs.

Answer: I've already written to you yesterday saying no (to everything you asked for).

5. Do we know the identity of the two Humm directors joining our board. Could Andrew Hoshino comment on whether we have veto powers as to who they nominate. Is Humm director John Wylie interested in joining given his busy schedule as an emerging shareholder activist at Boral and now Lend Lease. He would be a good get if available.

Answer: declined to mention Wylie and said Latitude would interview and make offers once the vote was completed.

6. The Buy Now Pay Later sector is suffering from a serious bursting of its bubble after way too much capital was thrown at the sector globally, led by Afterpay, which is suffering from a blowout in bad debts under the ownership of Block. Have we looked at potentially buying some diamonds in the rubble after the likes of ZIP and Sezzle have seen their shares prices crash? Could the chair and CEO please both comment on the BNPL sector, including whether any of the players are serious competitors to us? For instance, does Harvey Norman accept Afterpay. If not, is this a future risk to our relationship and profits from Harvey Norman customers?

Answer: why would we buy loss-making businesses. Harvey Norman does not offer Afterpay.

7. Why didn't we buy the whole of Humm rather than just the majority of its business? As one of the 18,000 Humm shareholders, I am going to receive a very small parcel of Latitude shares as part of this unusual transaction. Are we going to offer a facility to mop up thousands of new shareholders who may not have a marketable parcel. Also, has Humm founder Andrew Abercrombie promised to keep his shares and how big a stake in Latitude will he emerge with?

Answer: we didn't want their commercial leasing business. No idea what Abercrombie is doing. Ask him.

8. Mike, you said you would be retiring at next year's AGM. Is that after the meeting or will the new chair run that meeting? Also, you promised yesterday to read out all my questions in full but you cut a couple short and censored the odd corporate name. Will you agree to a non-director reading out the questions in full independently at next year's AGM, if you are running the meeting? Finally, do you believe your successor is currently on the board?

Answer: butchered the question again and failed to address it meaningfully.