ASX Release

Issued 16 June 2017

Trading Update - CHS signs Department of Defence agreement

Sigma Healthcare is pleased to announce that it's subsidiary, Central Healthcare Services (CHS), will begin exclusively servicing the Commonwealth Department of Defence (DoD), one of Australia's largest and most important employers, with pharmaceutical supplies.

The new agreement, commencing June 2017 is for an initial five-year period with the option for two extensions of two years.

The initial phase of the agreement sets the base for CHS to provide pharmaceutical supplies to Commonwealth nominated distribution points across Australia, with the option for DoD to extend the scope of the Agreement.

Jeff Sells, Executive General Manager Business Development and Strategy, who also oversees the CHS business, commented "We are excited to commence this long term partnership with the Department of Defence. Over the past two years, CHS has expanded its distribution network to have a national footprint. This investment has given us a fantastic platform to achieve growth through extended service agreements such as this one. Clearly the Defence personnel provide critical support to the Australian community, so CHS is really proud to support their healthcare needs."

With existing facilities in Victoria, New South Wales and Queensland, the recent addition of a new distribution centre in Western Australia enables CHS to provide a national distribution service.

"We now have a national footprint that will support DoD, community pharmacy, hospital pharmacy and our third party logistics customers. This is another great step in implementing our business strategy to diversify our earnings away from PBS and move to a more holistic healthcare model", Mr Sells said.

As there are a number of initial setup costs, the new agreement with DoD is not expected to make a meaningful contribution to the FY2018 results for Sigma Healthcare.

For more information, please contact

Gary Woodford Steve Dabkowski

Corporate Affairs Manager Blue Dot Media

03 9215 9632 0419 880 486

About CHS

Established 35 years ago, Central Healthcare Services (CHS) has grown to become a National Wholesaler servicing the Pharmacy and Hospital markets of Australia. CHS's core expertise lies in Warehousing, Logistics and Distribution of healthcare products including pharmaceuticals and over the counter products. As an approved sub-contractor for the Australian Community Service Obligation (CSO) program, CHS provides delivery of a full product range to its National Customer base. CHS is part of the Sigma Healthcare group, and works to create partnerships with customers and manufacturers alike by implementing a cost efficient service model throughout the supply chain.

Sigma Healthcare Limited published this content on 16 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 June 2017 03:40:03 UTC.

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