Ann: Notice of General Meeting / Proxy Form, page-4

"The Australian medical and scientific wholesaling industry has experienced a steady decline in recent years of 0.2% per year since 2019. Fluctuations in the Australian dollar have been a large reason for this, as the majority of industry products are imported. Intense competition in the industry has meant that wholesalers have needed to maintain or decrease their prices to attract customers, keeping margins low. To attain a competitive advantage without sacrificing profit, some wholesalers have been purchasing equipment from international markets with lower overhead costs, such as China and Thailand. The Australian population demographics, as well as health trends and advances in medical technology all dictate public and private health spending. An ageing population and the Covid-19 pandemic have increased health expenditure, which has increased demand for medical equipment. However, most benefits from the increased government spending due to the pandemic have been offset by the global supply chain challenges. Wholesale bypass trends have also hampered industry growth, with many buyers purchasing directly from manufacturers in recent years"