Ann: CEO Address to Shareholders, page-3

Has anyone able to work out how much this drop in wholesale prices of PBS products affects Sigma?

The second issue we seek resolution on is the wholesaler funding model. Wholesalers are paid a
percentage margin on the value of the PBS products we distribute. With Government policy continuing
to drive down the value of PBS products, this has substantial implications for wholesalers. We continue
to consult with Government to de-link wholesalers from ongoing price decline. What we seek is
consistent with the action the Government has already implemented in support of the Guild, by de-
linking pharmacist remuneration from this declining PBS revenue.
On both these issues, whilst engagement with the Minister and Department of Health is positive, it is
time for action.