Sigma and CWG Merger Risks and Management Overview
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Financial Strength and Potential for Significant Cost Synergies
Aggregate annual historical MergeCo EBIT >$495m1, before synergies
-
Larger and more diversified earnings base
Significant potential for synergies - c.$60m p.a. initial estimate of cost synergies
expected to be realised four years post completion of the Proposed Merger²
Sigma
Strong commercial logic, with cost synergies expected to be realised across supply
chain and corporate
CWG
Potential for additional synergies and flow-on benefits to franchisees
Integration is expected to be completed within four years post completion of the
Proposed Merger, subject to the receipt of regulatory approvals - with full run-rate
synergies expected to be achieved in the first full year following integration (i.e. in year
five)
CD
CC
28
Notes:
1.
2.
12 months to June 2023 in the case of CWG and 12 months to July 2023 in the case of Sigma. Shown on an aggregated basis and does not take into account intercompany adjustments. Refer to page 42 for further detail. This is based on historical financial information of CWG
and Sigma and is given for illustrative purposes only and should not be relied upon as Sigma's views on its future financial performance following completion of the Proposed Merger. There has been no alignment of the financial year ends of Sigma and CWG to present the
aggregated MergeCo financial information. Year-end reporting periods will be aligned post implementation of the Proposed Merger
On a run-rate basis. Synergies expected to be achieved four years post completion of the Proposed Merger. One-off costs to achieve estimated at c.$75mView entire presentation