Good afternoon. My name is Michael. The meeting, relatively short timeframe, which we will talk about shortly. First, I wish to acknowledge the Wurundjeri General Meeting of Sigma Healthcare open. Remain open until the conclusion of today participating online. Six items of business covering 11 resolutions as outlined in our notice of meeting. The directors and several— s tarting from your left. [inaudible] is a member of the Remuneration Committee, the Audit Committee. Annette Carey is Chair of the Board Committee— Science and Sustainability Committee, as well as being a member of the— Vikesh Ramsunder, our Managing Director and Chief Executive Officer, whom you will hear from shortly, and Kara McGowan, who is our Chief Legal Officer and Company Secretary. Executives, who will be available to speak with shareholders at the conclusion of the meeting, as well as Alison Milner from the company share registrar, MUFG.
I would just also like to acknowledge that Sam Gance is with us in the audience. This is effectively an overview of the introducing Vikesh. FY 2026 operating as a merged group. The results demonstrate both the strategic logic of bringing Sigma and sizing and marketing capabilities, reach and resilience to AUD 1.09 billion of AUD 605 million, demonstrating the strategic logic of the merger. Discipline. Net debt of paid fully franked dividends totaling our strategic priorities. Amcal, and Discount Drug Stores capabilities selectively in markets with will unlock further operating leverage. We continue to grow store numbers in Australia. We expect to open two stores.
As the largest pharmacy group in the United Kingdom, it was not to proceed. An interesting insight into the U.K. market. Integrating systems and processes months since the merger, but the Board is throughout. Transparency, accountability, and disciplined decision-making. From the outside, committees are chaired by independent non-executive. I personally chair provides approval process, including compliance. Nature of our business and have governance, oversight, and financial. Chairing the IBC, I would make the read standard commercial terms offered to have been on the same consistent terms for related and non-related parties.
Place for founders, including related party directors is a— Chemist Warehouse stores across Australia will require time as the network grows. Financial disclosures under AASB. Opportunities supported by the Risk, Compliance and Sustainability Committee chaired by Chris Roberts and the risks are considered within our enterprise. Composition of the Board and acknowledge. However, what I do have to say is that the current board is the result of a shareholder vote at the Sigma EGM. We consider that we are still a relatively new board, and it remains early days in the merger of Sigma.
At this stage of our journey. Our ESG approach is also waste from landfill, which is over. Risk assessment and supplier engagement and invested more than AUD 7.5 million across. We remain health and safety. The connection between performance and successful year. Work expertise and experience that has— Thank you, and I will now hand over to Vikesh.
For results for the year. I will and converting greater our global pharmacy network. During the year, operated the Amcal and Discount Drug Chemist Warehouse as more customers purchase more products with further support from the enduring 10 years with New Zealand leading the growth. Prepare to launch in the United Kingdom. Our supply chain— w hile each additional unit, we achieved AUD 32 million in annual synergy benefits during the year and closed the standalone. Since year-end, we have also benefits have already been realized. We have mapped the change manage an important enabler for faster once drive further efficiencies across our Chemist Warehouse brand.
Sales up 12.1%. Sales for the same period are up almost 10 fragrances. Vitamins and supplements are experiencing softness as consumers adjust their our business model. However, the breadth and depth of its discount offer provides increased performances in other less discretionary categories such as beauty, healthcare, GLP-1, GLP-1 sales to further enhance accessibility. Momentum, with sales for the we also continue to execute our growth. Our market position continues still represents less than 10 acquisition of the Amcal and Discount Drug Stores. There is a meaningful runway for domestic growth. Chemist Warehouse stores and 42 Amcal and Discount Drug Stores in Australia. We now enter for the balance of the first half. We have a clear plan, strong momentum, and significant opportunities still ahead and to turn that execution into—
What responsibility does Sigma Healthcare? As an overarching comment, we are have been trying to achieve a resolution with the landlord. Gary, I think we had two other questions. Correct, Gary?
Yes. We have shifted the AGM from the Sofitel to—
—very accessible and suitable for an AGM. To the next four items of business and remuneration of 19 October. All voting will be conducted by way of a poll. I will be voting today, so we will provide an opportunity for then go to the questions from the floor for financial reports, sustainability and read. This matter available to take any questions on the auditor's report, financial report, sustainability report.
I will start by thanking you and Ms. Carey for proxies. I have a few questions. First comment is, we are very pleased to see Mr. Verrocchi bought an additional large package of shares, particularly as I think a wonderful endorsement. The Australian Shareholders' Association understands and appreciates the knowledge of the founders and family, the company to be focused on improving its performance. Performance in our view, even though that goes against many of the independent. In our meeting that yourselves as expert in everything, and you sort of nature and a bit more.
The more kind of information they can actually use that is fact-checked is quite useful. Completely unprofessional, but when I looked at people on the Board that it would be useful to have that listed as a key skill, because when you are going off to Ireland, understood those markets well. On the organization and Board structure, comes a time with all founder-led companies when succession takes place, and it is not just television show Board founders are rotated off for. I would like to ask whether you have got two more questions, but if you want to do those in.
We have a succession plan process in place. A s I noted in my speech, at this point in time, we still consider plan for a long time. We are only responsibilities that we take on Board seriously.
Excellent. Yeah. And look, it sometimes takes a long time to find appropriate people. This is a bit left wing, making it the fastest over. Have you got a plan for actually?
The Chemist Warehouse model is there are bitterly to identify products that can in working out what products will sell now and into the—
Founder-led company with a very misalignments with pay scale and so on, which have all been kind of addressed, b ut you do a—
—selling. We do do staff engagement surveys. Works, and I think the entrepreneur to other elements of the business which we talked.
As long as the staff come along Board. That's the key thing.
Yes.
Look, that's all I've got. Thank you very much, and thank you for a good year. I've increases in sales and profit at the. Share price should drop, but go figure. Thank you.
Thank you, Mr. Howe.
Good afternoon. My name's Peter. Mike's question and one to a comment made by our chair. Follow up to Mike's the findings and what benefit has that we've found from doing them.
The mood of our staff is a really important ingredient to being successful.
In his speech, he mentioned about of our staff, our exec affect every single business on the planet, basically. How are we aspects a nd is there a Board person if other i s for us?
I think we've paid a lot of at skills and experience of staff in AI.
Okay. Thank you.
Thank you. Are there any other questions online? Thank you. Item number three on the notice of meeting, to adopt the company's remuneration report for the year ended 30th of June. Valid votes received from shareholder meeting, the re-election of three eligible, myself, Mario Verrocchi, and Damien Gance all offer ourselves for re-election. Stand for this election this year. In accordance with our constitution, noting all directors have been elected or require at least one director to stand at an. Members were appointed at the time of the merger in February 2025, some 18 months ago. Mario and—
—re-election of Michael Sammells. Including following the merger. Michael is currently the Chair of the. Michael's financial experience, as the merger negotiations with Chemist Warehouse.
I am pleased to be able to offer myself up for re-election. Following the tragic and unexpected passing of our previous Chairman, Ray Gunston, I was asked by the Board to take. Point, I have been part of an amazing ride for Sigma. First, the company secured the Chemist Warehouse. Of the merger negotiations with Chemist Warehouse completion through to today where we have been able to. Believe I have made a valuable contribution to e xperience in the healthcare sector, along with skills in finance, M&A, and governance to complement the skills and ex- Chemist Warehouse remains work in progress. It would be a privilege, if re-elected, to continue to be.
I move that Michael Sammells be re. Received. No?
A related party transactions committee and transactions that have been phased out since the merger, and also identify areas. I would say is that the relate. So there hasn't effectively been a phasing out. The thing I would say, which I'll say later, is of the pool will naturally decline.
Well, I congratulate you, Michael.
Mario Verrocchi, pharmacist and founder establishing, who is currently the CEO of Retail. As set out in the notice of meeting. Over to Mario to address shareholders.
To the Sigma Healthcare Board. Wo rking life. It's been my one marketing, and more important. We use a term in our business and business has evolved, and it's nation to publicly list life, thanks to Vikesh and his team, an d that's to become a truly international healthcare powerhouse a nd I've gone on record. Firstly, I have no intention of selling down my share. I want to stay on. I want to see the full integration. I seek your approval to allow me.
Thanks, Mario. Are there any questions on the phone relating to the re-election of Mr. Damien? Damien was the first Chemist Warehouse pharmacist. Damien is also— From the Board's perspective, Damien brings a strong role in the Sigma Chemist Warehouse—
—re-election as a Director of Sigma Healthcare. My connection to this business goes back standing in the dispensary as my parents literally grown up with this company. My experience goes beyond simply working in our pharmacies, because for around 20-odd years, I've closely with our franchisees and with the pharmacy boards in each state and territory. Our pharmacists, for the network, and I aligned. I think the negotiation and implementation. So I know the combined business delivered. I want on our franchise partners and pharmacists to keep thriving, trusted for generations to come. So why does this matter to me? Because any decision that we make v oted in favor of the resolution.
Questions from the floor in respect shifts that he has encountered since— I'm okay if you shifts that he has encountered since in our business while predicat or the change has really been one of evolution. In the business, and I think that what business that I think in the long term will make this a more sustainable, better business for all of our shareholders. Embrace the changes as—
Chair, there are no phone questions.
A full explanation of this agenda. Eighteen months, the Board has reviewed the remuneration, its strategy and appropriate growth metrics. In relation to the 2026 long-term, and in setting performance targets tha are appropriate for an ASX top 20 high growth company. Please vote for the grant of. I believe the 2026 LTI increase the lower end of the EPS growth range to 10% per annum up from 7.5% per annum. Investing. Over a three-year, i nvesting. While this change was acknowledged as an improvement, there is still a concern that the revised range current broker consensus— is unchallenging simply because— Rather, the market's a lso make the point that whilst we remain veryd discretionary when income is challenged.
Introduction, I will now move to each resolution. Relates to the grant of 1,000,008 p lan. Shares to the Managing Director and Chief. Predefined financial and non-financial performance metrics. The Board retains discretion to amend. Various performance hurdles, evidence, but challenging targets. Available votes received. For the potential retirement benefits to the— t he Board has sought shareholder. Accelerated event were to occur manner. I will now put, a re there any questions from the floor on this item? Yes, sir.
Peter Collier again. Apologies for that, of the company, that sort of thing.
Board considered. So in a timely fashion without having to rev—
Thank you for holding a hybrid meeting. I actually find them very useful, particularly when I am not here.
One question from the market and allow for a fully informed. At this stage, we respect your views and the advisor recommendations which you have already—
There are no phone questions.
We now move on to Resolutions 8 and I've been asked by some shareholders and stakeholders why we are introducing an LTI offering for our chief. We've been in the process of putting in place a formalized and structured remuneration framework to be standardized across that these two roles should be on a standard 149,060 rights. Valid available votes received. 200B and 200E of the Corporations Act. I will now put on the screen. Are there any questions with respect to Resolutions 8 or 9, starting with the floor? On to Resolutions 10 and 11. Again, I will take questions at the end of these two resolutions. Under the 2026 long-term incentive plan. I will now put up on the screen details of the Item 7.2 and 200E of the Corporations. With respect to Resolution 10 or 11. Any questions from the floor? Any questions on the phone? Remain open for a further five minutes.