Sigma and CWG Merger Risks and Management Overview
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Sigma Pro Forma Balance Sheet and Uses Of Proceeds
c.$400m Entitlement Offer proceeds strengthen the Sigma balance sheet, providing sufficient headroom to
support the new Chemist Warehouse supply contract and near-term business growth initiatives¹
Pro Forma Balance Sheet Position (Under No Proposed Merger Scenario)
Sources and Uses of Funds²
A$m (as at 31 July 2023)
Sigma
Entitlement
Offer²
Pro Forma
Entitlement Offer
Sources of Funds
Cash and cash equivalents
11.3
298.5
309.8
Entitlement Offer
Trade and other receivables
335.9
335.9
Inventory
256.5
256.5
PPE
191.9
191.9
Total sources
Goodwill and other intangible assets
101.2
101.2
Right-of-use assets
88.0
88.0
Other assets
108.1
108.1
Total assets
1,092.9
298.5
1,391.4
Uses of Funds
Bank overdraft
13.6
(13.6)
Trade and other payables
354.4
354.4
Borrowings
80.0
(80.0)
Paydown of debt
Lease liabilities
141.0
141.0
Other liabilities
18.5
18.5
Additional cash on balance sheet³
Total liabilities
Net assets
Total equity
607.5
(93.6)
513.9
485.4
392.1
877.5
Transaction costs
485.4
392.1
877.5
Total uses
Net debt / EBITDA4
1.3x
(4.7)x
A$m
400.0
400.0
A$m
93.6
298.5
7.9
400.0
Notes:
39
1.
2.
In the event the Proposed Merger proceeds to completion, and to the extent the proceeds have not been applied to fund working capital needs - some of the net proceeds from the Entitlement Offer may instead be used to partially fund the cash consideration to CWG shareholders
Based on approximate Entitlement Offer size of $400m. Actual offer size is $400.8m
3.
For the funding of business growth initiatives and to support the delivery of the new Chemist Warehouse supply contract
4.
Net debt/EBITDA is based on LTM EBITDA to 31 July 2023View entire presentation