Sigma Healthcare : Half Year 2020/21 Results Presentation

Sustained momentum delivering results

Half Year Results

10 September 2020

Important notice

This presentation for Sigma Healthcare Limited and its subsidiaries (Sigma Group) is designed to provide:

• an overview of the financial and operational highlights for the Sigma Group for the half year period ending 31 July 2020; and
• a high level overview of aspects of the operations of the Sigma Group, including comments about Sigma's expectations of the outlook for FY2021 and future years, as at 10 September 2020.

This presentation contains forward-looking statements relating to operations of the Sigma Group that are based on management's own current expectations, estimates and projections about matters relevant to Sigma's future financial performance. Words such as "likely", "aims", "looking forward", "potential", "anticipates", "expects", "predicts", "plans", "targets", "believes" and "estimates" and similar expressions are intended to identify forward-looking statements.

References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the Sigma Group or the likelihood that the assumptions, estimates or outcomes will be achieved.

While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. Sigma Healthcare Limited, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation.

All forward-looking statements made in this presentation are based on information presently available to management and Sigma Healthcare Limited assumes no obligation to update any forward-looking statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice in Australia (including financial and legal advice) before making an investment in the Company's shares or in making a decision to hold or sell your shares.

Sigma Healthcare Limited HY21 Results Presentation

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Mark Hooper

CEO & Managing Director

1. Overview
2. Financial Performance
3. Operational Update
4. Capital Management
5. Business Transformation and Investment
6. Outlook

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Overview

Financial

Performance

1H21 Underlying

EBITDA* of $34.1m

(post AASB16)

2H21 early results tracking well with continued sales growth and benefits from Project Pivot

COVID-19 - Result reflects strong PPE sales offsetting income and cost impacts

Operational			Business
	Update	Transformation
	Wholesale Sales (ex-CW			Project Pivot - has
	& Hep-C)** up 15.1%
	Pharmacy brands - Like			delivered $86.8m
			annualised efficiency
	for like growth of 9.5%
			gains to 31 July 2020 and
				remains on track to
				achieve $100m by FY21

Expansion businesses

performing wellDC Investment - program in final stages to deliver

the most efficient

pharmaceutical

distribution capability

DC Network has

efficiently absorbed

demand spikes during

COVID-19ERP upgrade - navigating COVID-19 and remains on

track and on budget

Capital

Management

Sale and leaseback of two Distribution Centres completed 21 August with $172m proceeds

Net Debt of $179m at

31 July 20,

subsequently reduced to $33.6m by 31 August

1H21 Interim Dividend

suspended as

previously announced

People and

Culture

Team member

engagement continues

to improve with 83% rating Sigma "a truly great place to work"

Sustained improvement

in Customer

engagement, with Net Promoter Score (NPS) up 4.3 points

Health and Safety is a strong focus - COVID safe practices in place, and LTIFR^ down 45%

• Refer to Appendices for a Reconciliation of Reported to Underlying
• Ex-CW& Hep-C - refers to Chemist Warehouse, and sales of Hepatitis-C products which are high value and low margin

• LTIFR = Lost Time Injury Frequency Rate

Sigma Healthcare Limited HY21 Results Presentation

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