Sigma and CWG Merger Risks and Management Overview slide image

Sigma and CWG Merger Risks and Management Overview

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Historical Financial Profile Material non-recurring COVID related and other items benefited FY22 CWG (A$m) Sales revenue¹ FY22 FY23 2,195 2,257 Commentary Financials for CWG represent statutory audited results prior to any normalisations or management adjustments Year-on-year results across FY22 and FY23 are not directly comparable due to the following reasons: Material non-recurring COVID related and other items benefiting FY22 (~$105m adverse impact to FY23 EBIT) One-time non-cash accounting policy change related to recognition of marketing income (~$16m adverse impact to FY23 EBIT) Effective from 1 February 2023, CWG implemented certain changes to its commercial arrangements which do not impact profit before tax, but do impact comparability of individual profit and loss line items Fees revenue² 95 85 147 Franchise and related revenue³ 74 82 Marketing, advertising and other revenue4 638 604 Total revenue 2,993 3,091 - Gross profit 1,072 918 EBITDA5 722 555 Depreciation & amortisation (136) (96) EBIT6 586 460 Net finance costs (36) (30) Profit before tax 550 429 Comprises wholesale sales delivered through distribution centres and retail sales undertaken directly by CWG, including certain online sales Comprises wholesale sales delivered directly by suppliers that are accounted for as the net amount of consideration that CWG retains after paying the external party for the goods and includes other services in connection with franchisee inventory purchases Comprises fees for support services provided to franchisees and other non-franchisee stores Notes: 1. 2. 50 3. 4. Includes marketing services, promotional, advertising and other supplier revenue 5. 6. EBITDA is a non IFRS measure of financial performance and has been derived by adding back (i) net finance costs and (ii) depreciation and amortisation expenses to profit before tax as disclosed in CWG's audited statutory accounts EBIT is non IFRS measure of financial performance and has been derived by adding back net finance costs to profit before tax as disclosed in CWG's audited statutory accounts
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