7 questions lodged at 2025 Technology One hybrid AGM
February 19, 2025
Below is the text of the 7 written questions submitted at the 75 minute Technology One hybrid AGM held in Brisbane on February 19, 2025 and via Link. See notice of meeting. The only protest was 15.6% against chair Pat O'Sullivan, market cap was $10.4b on AGM day and the chair disappointingly said a copy of the webcast archive would not be provided so some of the wonky videos below is all shareholders will have access to if they missed the action live. However, they disclosed the proxies early and also embraced scheme-like voting disclosure.
Q1. The 6 most valuable US big tech stocks - Microsoft, Apple, Amazon, Alphabet, Meta and Nvidia - are together worth more than $20 trillion, largely because they have enormous pricing power and are over-charging customers the world over. Could the CEO comment on which of the big global technology companies we are most reliant on and what would we do if they suddenly put their prices up by 30%? Also, are we at all exposed to a potential US trade war involving Australia's treatment of big US tech companies?
Answer: CEO Ed Chung said they are most reliant on Microsoft and Amazon through AWS but manage the business with optionality if such a price rise was ever imposed. Watch video of exchange via Twitter.
Q2. I've just retired after 12 years as a local government councillor at City of Melbourne & City of Manningham, both of which use Tech One. I was surprised by the CEO's comment at the 2023 AGM that local government "can't survive without us". At the last 2 AGMs, the CEO said 77% of Australian councils are using at least 1 of our products. Has that number moved over the past 12 months and who are our biggest competitors servicing Australian councils? The CEO failed to name names when asked this question last year, so please be more specific this year?
Answer: CEO Ed Chung once again declined to name the competitors although Oracle and Workday got a mention as fly by nighters in the market niches that Tech One operated in earlier in the meeting. Watch video of exchange via Twitter.
Q3. Thank you to Richard Anstey for his nearly 20 years of service on the board, which ends today. The company has performed spectacularly over this period, particularly in recent years. It is always helpful for investors to have access to some exit perspectives from retiring directors. In his final contribution as a Technology One director, could Richard please comment on what he regards as the best 3 decisions the board made during his time as a director and does he have any regrets?
Answer: Richard gave a good answer, citing the switch from license fees to software as a service and board renewal dynamics. Watch video of exchange via Twitter.
Q4. Pat Sullivan is clearly over-boarding as chair of 3 major ASX listed companies with a combined market cap of $26.5b, although I do acknowledge the stellar performance at Cars Group & Tech One. There was a 15.6% vote against his re-election on the proxies today & thanks for disclosing the proxies early to the ASX, providing for a better informed debate. Which of the proxy advisers recommend against due to the workload issue & is Pat planning to retire soon as Cars Group chair, having served on that board for 18 years?
Answer: chair Pat O'Sullivan got on the front foot in his prepared comments, which made it extra tough for the ASA questioner on the floor and when it got to my crack at this issue, he named ISS for recommending against and defiantly declared he won't be standing down as Car Group chair any time soon despite having spent 17 years on that board. Watch the 3 videos via Twitter and the highlighted links.
Q5. CVs matters for professional directors. The only major blot on Pat O'Sullivan's copybook is Marley Spoon, a German company which listed on the ASX in June 2018 and ended up destroying more than $500m of shareholder funds and then delisting last year. Pat served 20 months on the Marley Spoon board serving as audit committee chair until February 2020, when he resigned citing workload issues. What went wrong and what lessons did he learn there which makes him a better chair at Technology One?
Answer: chair Pat O'Sullivan reckons "Marlay Spoon was a fantastic start-up business when I was involved" but this was a pretty farcical exchange, partly due to the question wrangler failing to mention the $500m lost by shareholders or Pat's reliance on workload issues as his reason for quitting in February 2020. Watch video of exchange via Twitter.
Q6. Well done on recruiting a quality new director with Paul Robson's pedigree. Could Paul & the chair comment on the recruitment process that led to his appointment. Was a head hunter involved, did the full board interview Paul & did they interview any other candidates? Did Paul know any of our directors before engaging with the recruitment process & how easy was it for Paul to persuade MYOB's owner, KKR, that he should take on a part-time gig on the board of a listed Brisbane-based company capitalised at more than $10 billion?
Answer: chair Pat O'Sullivan didn't mention any recruitment firm and Paul Robson only talked about meeting individual directors so I'm guessing this was an inside job promoted by the chair with no formal board interviews of competing candidates. Watch video of exchange via Twitter.
Q7. Well done on running a near perfect hybrid AGM from a transparency, process and debate point of view. The cherry on top would be scheme-like disclosure of the poll results, revealing how many shareholders voted for and against resolutions such as this constitutional change. How about it given that the likes of Suncorp, Qantas, Myer, Tabcorp and ASX all do this to try and give retail shareholders a bigger voice and stimulate greater voting participation going forward given less than 5% of shareholders normally bother to vote?
Answer: Not asked, but all is forgiven as they embraced scheme like disclosure in the poll results announcement.
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