Ann: CEO Presentation to Shareholders, page-5

Answering questions, the Chairman was more confident and reaffirmed that the recommencement of dividends remains a priority.

Re its largest shareholder PMV, she said that to date, the MYR Board had been unable to reach agreement with PMV. She noted that PMV chose not to nominate Directors for election.

Re the MYR online business, it has grown from A$200 million in FY 18 to A$539 million in FY 21. There will be a continued focus on online. This will include Black Friday.

A holder complained about floor managers in Sydney not making it easy to find fashion items. The Chairman said it was a balance between 'brands' and 'similar items being together'. Some categories have been co-located. For instance, all the sporting wear in Melbourne is in the basement.

Re the payment of incentives to executives when the SP is at 13 per cent of the IPO price, the Chairman said the Board took account of feedback with the transformation incentive plan being the only one that delivered incentives. It believes this will drive improved shareholder value. There was sales growth overall and a net profit in 2017. MYR employees throughout the business are rewarded appropriately with some other unspecified schemes.

Re Mr Solomon Lew and his apparent takeover plans, the Chairman said it remains open to constructive dialogue with PMV, including proportionate and appropriate representation. In the event of PMV launching a takeover, the MYR Board would consider an appropriate response.

The Board has made significant changes to the MYR ONE rewards. There's a lower reward available of $10.

A holder complained that holder interests were neglected. The Chairman acknowledged that the SP remains below the IPO. The Customer Focus Plan is the focus in driving shareholder value. It is gaining traction. The balance sheet is being strengthened.

Another holder suggested that the Board continues to have an adversarial position re PMV.; The Chairman said it has engaged with PMV but hasn't reached agreement. She claimed it remained open to further discussion.

Directors have few holdings in the company, a holder suggested. The Chairman said that from 2018, within three years of appointment, Directors need to own shares equivalent to a year's fees. She said all hold more than 200000 shares.

An IPO holder asked re the SP and dividends, already addressed by the Chairman. In relation to the Amazon Hub, it's a non-financial arrangement that leverages the physical ability of MYR stores to transact. MYR is reviewing this arrangement.

Re guidance for 1H 22, of which three months have transpired, the Chairman declined to give a further update. (I understand this, as who knows how it'll go at Christmas. I can see the idiot Premiers in Qld/WA and SA shutting down their borders again after 'reopening' as they simply cannot escape the 'virus', and based on past history they and catastrophist unelected health officials will panic and go for freedom-lessening curbs on activity in a vain bid, acting like King Canute).

The Chairman said that Ari Mervis did not appear live at the AGM (i.e. showing his face) due to possible problems with dropouts. (Latter was not the actual word she used).

A holder asked re Ms Jacquie Naylor who was elected in 2019, and whether her presenting for re-election was an attempt to gain a three year term because 'next year will be more difficult'. The holder claimed that only two Directors (not three) should seek election in any one year according to the MYR Constitution. The Chairman refuted this. Mr Ari Mervis as a new prospective Director was required to separately offer himself.

Another said that MYR should disclose all transactions with Mr Lew, given the history of the COL-MYR loss with the $18 million Yannon Pty Ltd matter. The Chairman said that the Board did not consider it commercially appropriate to disclose dealings with suppliers.

Proxy advisers copyright their reports so MYR cannot publicise. Holders have seen the proxy votes displayed.

The Australian Shareholders Association asked re profitability of MYR comparing with David Jones and other worldwide retailers. The side-by-side analysis with DJs is appropriate, the Chairman said. Despite DJs having a financial services part, the analysis shows MYR comparing very well on all metrics. Nigel Chadwick, CFO, said that in the non-COVID times, CODB for MYR runs at about A$1 billion. It's continuing to look at reductions in floor space along with decreases in store costs through changes to rosters without adversely affecting customer service.

A holder asked re global supply issues and rises in container freight costs. The MD/CEO Mr King said that re Christmas product, it's pretty much all delivered. Re other merchandise, MYR is working with suppliers. The Australian ports are some of the worst in the world as the ACCC stevedoring report today highlights. MYR only sources directly about 20 per cent of its products compared to WES' KMart where the figure is 100 per cent. MYR is however concerned at the situation with the ports.

Re Mr Ari Mervis, a holder asked re his appointment as the Chairman of MCP. Yet it has a trading relationship with MYR where its trading relationship has grown. MCP's share price has declined by 60 per cent in the past year. Mr Mervis was said to lack retail experience. The Chairman said Mr Mervis had dropped off the line. The Chairman said that Mr Mervis has experience in consumer markets with a deep understanding, and also his executive experience. Mr Mervis then came on the line. He said that the MCP AGM is scheduled for 2.5 weeks in the future. He said in the last 25 years, he had received an insight into the supplier relationships with retailers, so this will assist the Board. The Chairman said that there is a declaration of any interests of Directors.

Re the issues of ethical supply of house brands, MYR has a broad supplier audit program undertaking 1500 audits per annum, concentrated on nations where the Board regards them as high-risk, such as work hours outside standard that are 'high risk'. Other lower risks are given a timetable to resolve.

The ASA also said it would support the remuneration report as the Board had made some good changes. The ASA doesn't support the use of 'two strikes' as a way to initiate takeover action.

A holder (Stephen Mayne, activist) said he owned just 10 shares and his wife 11. MYR sent a letter to each re the AGM. The Chairman said it decided to send a brief etter to all as it wanted to communicate with all holders.

He also asked re last year's AGM failing to disclose the proxy votes re re--election of the then Chairman (who was defeated). (I didn't type fast enough to obtain the Chairman's reply).

Re delays to container ships and MYR's use of rail for longer hauls compared to less environmentally road transport, the MD/CEO reiterated MYR was fine for Christmas stock. MYR uses rail whenever it can, as it's a big fan. Some Singapore to Australia container vessel sailings have been rerouted to Perth, WA (impliedly omitting east coast Australian ports as the ships are badly late) so MYR has used rail across the Nullarbor to send inventory to the east coast. (This adds to cost, but better than having unsold inventory). MYR is further looking at how it can mitigate problems (impliedly caused by shipping delays and the shipping lines' vessels omitting port calls).

I missed the next question but the Chairman said MYR was committed to replacing 80 per cent of its plastics packaging for sustainability. It is also working hard to come up with energy use targets that will be published over time.

A holder complained about delivery delays. The Chairman said there were multiple delivery options for shoppers. The MD said that Australia Post has been under pressure as has been widely reported. (So have almost all other couriers (though from my experience AP subsidiary StarTrack is the least affected). The MD Mr King had a meeting with the AP CEO last week. MYR's move into a semi-automated national distribution centre will enable more options for delivery. There will be short term issues remaining, which was not an excuse. All retailers are affected.

Re an alleged conflict of interest with Mr Ari Mervis as a Director (re MCP/MYR Chairman/Directorship directly), MYR has a clear conflict of interests policy. For instance he may need to be out of the room in some cases.

Activist Mr Mayne asked re JobKeeper receipts. The Chairman said that the balance of A$32 million was a wage subsidy. MYR was not a beneficiary of an uplift in sales as was HVN. The JobKeeper achieved its purpose - retaining a connection with its employees. It will submit the required notification publicly within the required 60 days.

Mr Mayne rather stupidly asked re the provision of a transcript of today's meeting. (It may well be available in the next day or two on USA-based website Tikr!) MYR will include the video (?) of the AGM on its website.

Mr Mayne asked re Mr Mervis' dealings with Mr Solomon Lew. MYR engaged a headhunter in relation to his appointment. Mr Mervis said he'd not had any previous dealings with Mr Lew.

Mr Mayne also asked this re Mr Dave Whittle. The latter said that he had no history with Mr Lew except that a company that he's CEO of deals with a Lew company. The Chairman said MYR is not considering a SPP.

Re the MYR search for a Chairman, there was extensive research undertaken. The Board decided that Ms Stephenson ought step in to provide stability.

The answers were good. The Chairman was not as nervous during this part.

Questions finished at 1313 AEDT, so a lengthy session.

The low point was leftie activist Mr Mayne asking numerous questions despite holding 10 shares. Not a marketable parcel. He's very annoying.

The AGM closed at 1315 AEDT. It was the longest AGM I've 'attended' for FY 21 thus far.