Ann: Notice of Investor Call and Presentation, page-32

Hi all,

Just wanted to share my thoughts. On the face of it, not collaborating with a major player like AZ seems like a big loss. However, IXC is actually creating long-term value here as signing with a major corporate would have seen our gross margins squeezed and thus earnings diluted. In addition, a larger manufacturer can easily (and regularly) deprioritise supply for a small company like IXC, leading to inconsistent inventory levels, inventory write-offs, cash flow issues etc - all ultimately earnings dilutive.

I know these risks quite well working for a large MNC in Finance/Strategy.

Net, IXC is maximising long-term shareholder value by partnering with a mid-sized player. In addition, there are so many alignments that the partnership almost seems "inextricable" in hindsight.