Sigma and CWG Merger Risks and Management Overview

65 59 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key Risks - Risks that are Common to Both Sigma and CWG Key Risk Changes in consumer perception and consumer confidence Exposure to litigation, claims and disputes Force majeure events Exposure to changes in tax rules and their interpretation Summary The success of each of the Merger Parties' businesses and the businesses of community pharmacies which carry their licensed brands relies on positive consumer perception and consumer confidence in that Merger Party and its brand. The Merger Parties' reputations and their potential profitability may be adversely affected by negative publicity or adverse commentary on product or service safety or suitability. For example, any potential inconsistencies in the quality of services in a Merger Party's franchisee pharmacies, adverse media coverage, product recalls or liability claims, unavailability of products or other issues may lead to consumers having compromised experiences. This in turn may have a detrimental effect on customer confidence and loyalty. Any damage to a Merger Party's reputation could have an adverse effect on its ability to maintain its market share, financial performance and future prospects. Either Merger Party may be subject to litigation and other claims and disputes in the course of its business, including but not limited to employment disputes (including strikes or industrial action), contractual disputes (including outstanding trade debts or, indemnity claims), product liability claims, personal injury claims, privacy breaches, intellectual property, debt recovery, regulatory compliance, occupational health and safety claims, or criminal or civil proceedings. There is a risk that any such litigation, claims and disputes could materially and adversely affect the Merger Party's business, operations and financial position, performance and prospects, including as a result of the costs of bringing, defending or settling such claims, as well as that Merger Party's reputation and customer relations. Litigation may also distract management's attention from operating and growing the relevant Merger Party's business, impacting that Merger Party's prospects and profitability. Events beyond the control of the Merger Parties may impact their operations and future profitability. These events include (but are not limited to) fire, flood, earthquake, other natural disaster, pandemics, civil unrest, war, terrorist attack and/or industrial action. Changes in tax laws and policies, standards and practices in Australia may impact on the operation of either Merger Party and their management. Tax laws in Australia are complex and are subject to change, as is their interpretation by the courts and the tax authorities. Legal reforms and proposals for further reforms, as well as new and evolving interpretations of existing laws, may give rise to uncertainty.

View entire presentation