Ann: Update on Proposal from Aspen Group , page-30

As all we ever read about this company in the news is largely negative, I've been back over the new Chairman's address at the AGM to deliberately cherry pick some of the more positive quotes (as against the only thing the media seized upon which was the lower projected EBIT for generics)

The reason i think its worth putting this up here is it is too easy to forget the positives when every single story that gets published harps on about the loss last year which came about largely due to an impairment and that itself was partly based on the run up in the share price of SIP from the arrow transaction was agreed and then settled in script.


Quotes from Brian Jamieson from June 21.

The first 4 months' performance of Sigma has been sound in most areas of our business.
Our Consumer, Manufacturing, Medical and Retail businesses have all performed largely in line with expectations. Our largest division, wholesaling, which has annualized sales
over 2.5 billion and over 30% market share, has enjoyed sales growth of 10% year on year.
Operating costs are in line with expectations. Corporate costs have understandably increased in the context of the Company's current activities. These are one off costs
and not expected to recur.
Performance in Generics, in a really tough and volatile market, has been more difficult.
Over our first four months to 31 May 2010 competition has been intense, with massive discounting, and EBIT was 6.4 million dollars below expectations.

.....The Company met all of its covenant requirements with its Banks when tested at the end of the first quarter.
Sigma has commenced a competitive process for the sale of the Herron brand of Consumer products. Funds raised will be applied to debt reduction. We are very happy
with the level of interest shown for this and a number of other non?\core assets.

....This year we should also see the benefits of site rationalisation that was started last
year. We have leased a state of the art warehouse in Rowville, Victoria. This will result
in the phased closure of our existing Clayton and Laverton warehouses.
The sale and leaseback of certain other sites over coming months will also be applied to
further debt reduction.
Lower debt translates in to reduced interest expense, and in turn to improved returns for shareholders.
....
As our first quarter demonstrates, all except generics are performing well.
We have a great base, but recognise the potential threats of Government reforms....

I have informed you of our first four month??s results for generics ?C they are
disappointing and we all know that.
However, let me tell you why I am optimistic.
This slide shows you the opportunity for our generics business.
In my opinion the generics business is one reason why Sigma is attractive to others.
The years ahead will reflect why we invested in Arrow.
We have market share; always an advantage for a business.
We have a clear path in implementing a strategy around the generics business.
We will stabilise the business.
We will build on the strength of loyal pharmacy customers, many of whom are
shareholders.