Sigma and CWG Merger Risks and Management Overview

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Overview of CWG's Franchise Model in Australia 21 CWG Wholesaler and Franchisor • CWG is a wholesale supplier of front-of-store consumer products and franchisor to the Chemist Warehouse and My Chemist Retail Network in Australia . CWG offers a comprehensive range of goods (directly or through favourable terms with external suppliers arranged by CWG), services and intellectual property to its franchisees CWG as franchisor provides a range of services to the franchisees: Wholesale supply of goods to store network Manages external suppliers Franchisor services to store network - Marketing and advertising services Leasing-related services to store network Goods, services and intellectual property supplied by CWG Payments by franchisees to CWG Chemist Warehouse & My Chemist Stores in Australia Franchisees • Franchisees pay CWG for stock purchased from CWG and fees for the brand licence and services • Franchisees are not required to buy stock from CWG but are incentivised to do so • Pricing methodology based on CWG receiving fair value (but not more) for the items it supplies • • • Franchisees negotiate individual pricing elements with CWG Arrangements for use of brand and in-store experience are similar to other retail franchising systems Highly engaged team of franchisees, many of whom also own equity in CWG

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