6 questions asked at 2023 Redox AGM

November 8, 2023

Here is the text of the 6 questions asked at the inaugural 2023 Redox AGM, which was a hybrid with the physical component held in Sydney. The proxies were disclosed early with no material protest votes.

Q1. Thank you for holding a hybrid AGM and disclosing the proxy position to the ASX along with the formal addresses. Given the interesting discussions across a range of topics today, could the chair undertake to make an archived copy of the webcast plus a full transcript of proceedings available on the company's website? The likes of Nine, AGL, ASX, ANZ, Domino's and Lend Lease all produced their 1st AGM transcripts in 2021. Will you follow suit today? This is something IAG has been doing since 2003.

Answer: Listen to audio of exchange via Twitter. Board will take this on notice.

Q2. The IPO was priced at $2.55 and the stock is currently at $2.35 so public investors are slightly under-water but the market has softened recently and it is early days. Keep plugging away. Could representatives of the founding family comment on how expensive and distracting the float process was and whether they have been surprised by the amount of time taken up by box ticking as public company directors.

Answer: Listen to audio of exchange via Twitter, plus second element. Overall, they weren't too disappointed with the process where they learnt a lot and spoke to lots of people.

Q3. When disclosing the outcome of voting on all resolutions today, 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 voluntary disclosure initiative adopted by the likes of Metcash, Altium, AUI, Dexus, Webjet, Tabcorp and Myer over the past two years. The ASX itself did it for the first time this season and Qantas did it last Friday. Public company voter turnout has fallen below 5% so please do your bit to try and stimulate greater voter participation by retail shareholders.

Answer: They'll take this one on notice but chair committed to try and maximise retail shareholder participation.

Q4. The financial report states that we only have 1910 shareholders and that 4 members of the Coneliano family collectively own 46% of the company. Could the chair please advise who are our biggest non-family shareholders and what sort of engagement we had with them leading into this inaugural AGM. Did any of the proxy advisers issue reports to their clients on how to vote at this meeting? What sort of engagement did we have with the proxy advisers, including the Australian Shareholders Association?

Answer: Listen to audio of exchange via Twitter, plus this second element. Chair said they have closer to 70% and there is no leverage on the stock. The company has net cash of $160 million and most of selling family shareholders have also retained cash thus far.

Q5. Could Renato please comment on how the family determined which members of the family would be given board seats at the public company. A board of 5 is very small. Given we have a market capitalisation of $1.23 billion, wouldn't it make more sense to have a board of 7 with 3 representatives of the founding family and 4 independent directors representing the majority public shareholders. Could the independent directors also please clarify their past ties with the founding family, if any.

Answer: Listen to audio of exchange via Twitter. Independent chair committed to retain a majority of independent non-executive directors.

Q6. After running a privately owned business for almost 60 years across 3 generations of the one family, it must be a massive change to suddenly receive more than $500 million in cash selling down to public investors. Could Renato please clarify the exact cash pay day the family received from the float and whether investing these proceeds has been a distraction from running the core Redox business. Is it correct that none of family controlled Redox shares are pledged to any financier or utilised for margin lending.

Answer: None of the stock is pledged to financiers and most of the cash proceeds received have been retained in cash thus far.