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Technology

India I Equities
Company Update
Change in Estimates Target Reco 

9 February 2018

Intrasoft Technologies Rating: Buy


Target Price: `750
Q3 weak, but guidance for a strong FY19; maintaining a Buy Share Price: `616
Battered by the Toys R Us bankruptcy, resulting in online stuff being
Key data ITECH IN / INSO.BO
deeply discounted, Intrasoft’s revenues were up only 26% y/y to $52m. 52-week high / low 855 / 305
Toys were a huge part of Q3 sales and impacted Q3 revenue ~8-10%. Sensex / Nifty 34006 / 10455
The 2.1% EBITDA margin (down 97bps y/y) was hit by lower sales, 3-m average volume $0.7m
toys discounting and exchange rate (adverse impact of 60bps). After Q3 Market cap `9bn / $145.2m
and factoring in the tax-rate cut in the US, we raise our FY19e/FY20e Shares outstanding 15m
earnings respectively 9%/4%. (The lower EBITDA reflects the
company’s focus on sales growth). Consequently, we raise our target Shareholding pattern (%) Dec'17 Sept'17 June'17
price to `750 (25x FY20e EPS), from `710 earlier. Promoters 47.5 47.5 47.5
- of which, Pledged - - -
Confident of achieving FY18 and FY19 30%+ revenue growth guidance. Free float 52.5 52.5 52.5
The company is now guiding to acceleration in revenue growth in Q4 and in - Foreign institutions 11.0 10.9 11.0
FY19 (we build in 34%) as the events described above will not recur. Also, - Domestic institutions 1.5 1.1 1.1
structurally, more toys and buyers are now compelled to move online, a plus - Public 40.0 40.4 40.4
from a one-year perspective. Besides, for growth acceleration in FY19, the
company started adding categories. This affected margins for the quarter but Estimates revision (%) FY19e FY20e
augurs well for FY19 growth. Revenues ($ m) (0.1) 3.8
EBITDA (0.9) (7.7)
Margins bashed by one-off events. The EBITDA margin was hit chiefly Net profit 9.2 4.0
by the compressed gross margin (350bps y/y). Marketplace promotions are
still on, however; therefore, 180bps decline of this was absorbed by the
market-places, leaving Intrasoft with a 170bps y/y margin decline. This drop Relative price performance
900
was due to lower revenues for reasons mentioned above. ITECH
800
Balance sheet. Q3 debt went up `186m q/q, to `637m. The added funds
700
were used partially to build up inventory (up `58m q/q). The company is 600
`open to using debt financing to support growth and expects to return to FCF-
500
positive in FY19. Tax rates would be cut sharply to 23-24%. 400 Sensex
Retaining our Buy rating. Overall Q3 was weak from growth, margins and 300
cash generation perspectives, partly hit by one-off events and partly by costs
Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18
built up to support growth acceleration. We maintain our Buy rating. Risk:
Extreme competition. Source: Bloomberg

Key financials (YE Mar) FY16 FY17 FY18e FY19e FY20e


Sales (` m) 7,169 9,390 11,664 15,675 19,827
Net profit (` m) 415 138 164 325 443
EPS (`) 28 9 11 22 30
PE (x) 22.1 66.6 55.9 28.2 20.7
EV / EBITDA (x) 111.3 47.7 35.1 18.3 13.7 Mohit Jain
Research Analyst
PBV (x) 7.7 6.9 6.3 5.3 4.3
+9122 6626 6531
RoE (%) 42.0 11.1 11.9 20.5 23.1 mohitjain@rathi.com
RoCE (%) 5.0 7.2 8.5 17.0 21.9
Shobit Singhal
Dividend yield (%) 0.3 0.3 0.3 0.4 0.5
Research Associate
Net debt / equity (x) -0.3 -0.5 -0.5 -0.5 -0.5 +9122 6626 6511
Source: Company, Anand Rathi Research shobitsinghal@rathi.com

Anand Rathi Share and Stock Brokers Limited (hereinafter “ARSSBL”) is a full-service brokerage and equities-research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient. Disclosures and analyst
certifications are present in the Appendix.

Anand Rathi Research India Equities


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

Quick Glance – Financials and Valuations


Fig 1 – Income statement (` m) Fig 2 – Balance sheet (` m)
Year-end: Mar FY16 FY17 FY18e FY19e FY20e Year-end: Mar FY16 FY17 FY18e FY19e FY20e
Revenues ($ m) 109.1 140.0 180.8 243.0 307.4 Share capital 147 147 147 147 147
Growth (%) 95.9 28.2 29.2 34.4 26.5 Net worth 1,181 1,312 1,444 1,723 2,113
Net revenues 7,169 9,390 11,664 15,675 19,827 Total debt 366 162 562 - -
Employee & direct costs 5,972 7,708 9,763 13,015 16,376 Minority interest - - - - -
Gross profit 1,196 1,682 1,901 2,660 3,451 DTL / (asset) 11 13 23 - -
Gross margin % 16.69 17.91 16.30 16.97 17.40 Capital employed 1,557 1,487 2,028 1,724 2,114
SG&A 1,118 1,506 1,664 2,211 2,862 Net tangible assets 191 194 201 207 209
EBITDA 78 176 237 450 589 Net intangible assets 6 5 5 5 5
EBITDA margins (%) 1.1 1.9 2.0 2.9 3.0 Goodwill - - - - -
- Depreciation 16 19 20 23 25 CWIP (tang. & intang.) 0 0 0 0 0
Other income 394 74 43 27 27 Investments (strategic)
Interest expenses 22 36 22 20 - Investments (financial) 536 668 334 334 334
PBT 435 196 238 434 591 Current assets (ex cash) 1,157 827 1,007 1,356 1,760
Effective tax rate (%) 5 30 31 25 25 Cash 173 194 963 497 675
+ Associates / (minorities) - - - - - Current liabilities 505 401 482 676 870
Net income 415 138 164 325 443 Working capital 652 426 525 680 890
WANS 15 15 15 15 15 Capital deployed 1,557 1,487 2,028 1,724 2,114
FDEPS (` / sh) 28 9 11 22 30 Contingent liabilities 1.90 4.90 - - -

Fig 3 – Cash-flow statement (` m) Fig 4 – Ratio analysis


Year-end: Mar FY16 FY17 FY18e FY19e FY20e Year-end: Mar FY16 FY17 FY18e FY19e FY20e
PBT 435 196 238 434 591 P/E (x) 22.1 66.6 55.9 28.2 20.7
+ Non-cash items -338 -35 -1 16 -2 EV / EBITDA (x) 111.3 47.7 35.1 18.3 13.7
Oper. prof. before WC 96 161 237 450 589 EV / sales (x) 1.2 0.9 0.7 0.5 0.4
- Incr. / (decr.) in WC 406 -235 312 150 204 P/B (x) 7.7 6.9 6.3 5.3 4.3
Others incl. taxes -97 -18 139 -114 -154 RoE (%) 42.0 11.1 11.9 20.5 23.1
Operating cash-flow -407 378 65 186 231 RoCE (%) - after tax 5.0 7.2 8.5 17.0 21.9
- Capex (tang. + intang.) 36 22 27 28 26 RoIC (%) - after tax 9.0 14.9 21.8 39.0 42.0
Free cash-flow -442 356 38 158 205 DPS (` / sh) 2.0 2.0 1.9 2.6 3.1
Acquisitions - - - - - Dividend yield (%) 0.3 0.3 0.3 0.4 0.5
- Div.(incl. buyback & taxes) 18 35 33 46 53 Dividend payout (%) - incl. DDT 8.4 25.2 20.0 14.0 12.0
+ Equity raised - - - - - Net debt / equity (x) -0.3 -0.5 -0.5 -0.5 -0.5
+ Debt raised 326 -204 400 -562 - Receivables (days) 5 4 5 4 4
- Fin investments -132 893 -334 - - Inventory (days) - - - - -
- Misc. (CFI + CFF) -43 -797 -30 16 -27 Payables (days) 17 7 10 11 12
Net cash-flow 40 21 769 -466 178 CFO:PAT % -98.0 274.1 39.6 57.2 52.1
Source: Company, Anand Rathi Research Source: Company, Anand Rathi Research

Fig 5 – Price movement Fig 6 – Average selling price

(`) ($)
900 70
ITECH
800 60.1
60 56.9
700 53.1
49.6
50
600
40.1
500 40

400 30
300
20
200
100 10

0 0
Feb-13

Feb-14

Feb-15

Feb-16

Feb-17

Feb-18
Aug-13
Nov-13

Aug-14
Nov-14

Aug-15
Nov-15

Aug-16
Nov-16

Aug-17
Nov-17
May-13

May-14

May-15

May-16

May-17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

Source: Bloomberg Source: Company

Anand Rathi Research 2


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

Result Highlights
Q3 FY18 Results at a Glance
Fig 7 – Segment-wise results
Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q/Q % Y/Y %
Revenues ($ m) 42 32 40 44 52 17.9 25.6
Growth y/y % 6 17 22 36 26
Orders (m) 1.02 0.60 0.70 0.73 1.04 42.5 2.0
Volume growth, y/y % 32.9 13.0 12.3 9.0 2.0
Revenues (` m) 2,818 2,161 2,602 2,870 3,383 17.9 20.1
Eff. exchange rate 67.5 66.7 64.5 64.5 64.5 0.0 -4.4
Number of vendors 1,833 1,900 1,950 2,000 2,050 2.5 11.8
Orders per vendor (average) 556.1 315.8 359.0 365.0 507.3 0.39 (0.09)
CoR (2,288) (1,817) (2,177) (2,399) (2,849) 18.7 24.5
As % of revenues -81 -84 -84 -84 -84 -62 bps -303 bps
Employee costs (55) (63) (56) (54) (50) -7.1 -9.0
COGS (2,233) (1,754) (2,121) (2,346) (2,799) 19.3 25.4
SG&A (442) (351) (385) (408) (461) 13.2 4.3
As % of revenues -16 -16 -15 -14 -14 57 bps 206 bps
S&M (406) (310) (349) (373) (427) 14.6 5.2
As % of revenues -14 -14 -13 -13 -13 36 bps 179 bps
G&A (36) (41) (36) (35) (34) -2.4 -5.4
Growth yoy % 39 13 12 -11 -5
EBITDA 88 (7) 39 63 72 15.2 -17.5
EBITDA margin % 3 0 2 2 2 -5 bps -97 bps
EBIT 83 -12 34 58 68 16.7 -18.7
EBIT margin % 3 -1 1 2 2 -2 bps -95 bps
Other Income 16.4 17.7 18.7 13.4 4.5 -66.7 -72.7

Interest expense (12) (8) (3) (5) (10) 118.6 -13.3


PBT 88 -3 50 67 62 -7.2 -29.5
PBT margins % 3 0 2 2 2 -49 bps -128 bps
Taxes (22) (5) (14) (27) (11) -59.1 -50.5
ETR % -26 213 -28 -41 -18 2272 bps 763 bps
PAT 65 (8) 36 40 51 28.3 -22.3
PAT margin % 2.3 -0.4 1.4 1.4 1.5 12 bps -82 bps
Source: Company, Anand Rathi Research Note: FY18 is Ind AS

Fig 8 – Quarterly result (` m)


Year-end: Mar Q3 FY18 % Q/Q % Y/Y 9M FY18 9M FY17 % Y/Y
Sales ($ m) 52 17.9 25.6 137 108 27.6
Sales 3,383 17.9 20.1 8,854 7,229 22.5
EBITDA 72 15.2 (17.5) 175 183 (4.5)
EBITDA margin (%) 2 -5bps -97bps 2.0 2.5 -56 bps
EBIT 68 16.7 (18.7) 160 169 (5.5)
EBIT margin (%) 2 -2bps -95bps 1.8 2.3 -53 bps
PBT 62 (7.2) (29.5) 178 198 (10.1)
Tax (11) (59.1) (50.5) (52) (53) (1.0)
Tax rate (%) (18) 2272bps 763bps (29.2) (26.5) -267 bps
Net income 51 28.3 (22.3) 126 146 (13.3)
Source: Company, Anand Rathi Research

Anand Rathi Research 3


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

D-MART vs. Intrasoft

Fig 9 – RoCE Fig 10 – Revenue growth


16.0% 40.0%

14.0% 35.0%

12.0% 30.0%

10.0% 25.0%

8.0% 20.0%

6.0% 15.0%

4.0% 10.0%

5.0%
2.0%
0.0%
0.0%

Q1FY18

Q2FY18

Q3FY18
FY14

FY15

FY16

FY17

H1FY18

D-Mart Intrasoft Technologies D-Mart Intrasoft Technologies


Source: Company, Anand Rathi Research, Notes: D-Mart no’s is from Bloomberg estimates Source: Company, Anand Rathi Research, Notes: D-Mart no’s is from Bloomberg estimates

Fig 11 – EBITDA Margins Fig 12 – Gross Margins


12.0% 20.0%

10.0% 19.0%
8.0%
18.0%
6.0%
17.0%
4.0%
16.0%
2.0%

0.0% 15.0%

-2.0% 14.0%
Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18
D-Mart Intrasoft Technologies D-Mart Intrasoft Technologies
Source: Company, Anand Rathi Research, Notes: D-Mart no’s is from Bloomberg estimates Source: Company, Anand Rathi Research, Notes: D-Mart no’s is from Bloomberg estimates

Fig 13 – Gap in valuation Fig 14 – Gap in valuation


(PE x) (EV/EBITDA x)
100 60
91
90 52
50
80
70 67 39
40
36
60 56
50 30
40
28 20 19
30
20
10
10
0 0
FY18e FY19e FY18e FY19e
D-Mart IntraSoft Technologies D-Mart IntraSoft Technologies
Source: Company, Anand Rathi Research, Note: D-Mart figures from Bloomberg estimates Source: Company, Anand Rathi Research, Note: D-Mart figures from Bloomberg estimates

Note:
1) Intrasoft’s incremental RoCEs are high and likely to match D-Mart’s in the next two years
2) Intrasoft, arguably, is playing in a bigger target market than D-Mart and is likely to have an edge in pricing, the premium of which is offset
by its dependence on a large operator in the market

Anand Rathi Research 4


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

Factsheet
Fig 15 – Revenue
Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Revenues ($ m) 41.7 32.4 40.3 44.5 52.4
E-commerce business ($ m) 40.9 31.8 39.8 43.9 51.6
Greetings business ($ m) 0.8 0.5 0.5 0.6 0.8
Source: Company, Anand Rathi Research

Fig 16 – Break-up of growth


Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Number of orders delivered (m) 1.02 0.60 0.70 0.73 1.04
Number of vendors 1,833 1,900 1,950 2,000 2,050
Average number of orders per vendor 556 316 359 365 507
Number of cards sent (‘000) ND ND ND ND ND
Number of products (m) 0.58 0.60 0.60 0.63 0.65
Source: Company, Anand Rathi Research * - FY18 figures are assumed based on trends shown by the company

Fig 17 – Revenue split by product lines (%)


(%) Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Furniture, Lawns and Gardens 30.0 45.0 41.0 40.0 38.0
Musical Instruments & Gadgets 13.0 13.0 18.0 21.0 25.0
Kitchen, Dining & Appliances 10.0 10.0 11.0 10.0 7.0
Home Improvement & Art Crafts 13.0 11.0 8.0 8.0 8.0
Sports & Outdoors 12.0 12.0 12.0 11.0 11.0
Toys, Games & Baby 20.0 7.0 8.0 8.0 10.0
Others 2.0 2.0 2.0 2.0 1.0
Source: Company, Anand Rathi Research

Note: Data estimated for the last two quarters as the company has stopped disclosing exact figures

Anand Rathi Research 5


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

Conference Call Takeaways


Company
 A few things which have contributed to margin contraction in the
quarter: 1) one of the largest offline toy retailers went bankrupt, leading
to steep discounting across toy categories. The company didn’t offer
aggressive discounts and reduced sales in that category against earlier
expectations (because of this ~8-10% of sales were compromised in
Q3), 2) the Indian portion of the business was hit by `5m by the rupee
appreciating and 3) in Q3 FY17, it was in the midst of a structural
change, which had led to a slowdown in adding products and hence
higher margins, while compromising on sales growth. From Q3 FY18,
it has started to make fresh investments to add products, which
resulted in lower margins and higher sales growth.
 The company has built a forecasting engine which tells it how much
inventory a company should keep. In Q3 FY18 it had ~$2.1m of old
inventory (of toys) on its books whereas $0.8m worth of new inventory
was bought. Management does not expect this to be written down.
 Greeting cards bring less than 1% to revenue and don’t impact overall
margins.
 The company will be a key beneficiary of the tax-rate cut in the US.
The FY19 effective tax rate could be 21-22%.
 It is focusing on reducing inventory days and increasing payable days
(through supplier credit). This helps it reduce capital required.
 It continues to invest in building technology infrastructure to enhance
revenue productivity.
Business outlook
 Though Q3 FY18 was bruising, the company is upbeat about achieving
its previous guidance of ~30-35% revenue growth in FY18, as it sees
no change in the growth momentum. Cash-flow is good enough for
any investment opportunity.
 It anticipates sales growth to accelerate in Q4 FY18. For this, it has
increased inventory levels.
Notes from the last quarters’ conference calls
From Q2 FY18
 Intrasoft continued its focus on improving supplier credit. However, a
build-up in inventory for the forthcoming holiday season has resulted
in an increase in payable days from eight in Q1 to 10 in Q2 FY18,
which will be reversed after the holiday season.
 At present, it is not looking for any geographical expansion.
 Its strategy is to add suppliers and products within its present
categories and widen its reach by adding marketplaces.

Anand Rathi Research 6


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

Valuations
 We value Intrasoft on a PE of 25x FY20e EPS (same as before) and
retain our Buy recommendation, with a revised target price of `750
(earlier `710). We are valuing it on PE as it has consistently been
profitable and does not intend to rely on external capital (or
continuous losses) to generate growth. Given the immense e-
commerce market and the current company size, growth doesn’t seem
to be a problem. We see the growth momentum persisting in FY19 and
FY20. Management believes that the growth rate will be 30-35% in
FY18.
 Over the years, the company has evolved into one of the faster-
growing 3P retailers in the US by building strong relationships with
vendors, and through its superior customer service and logistics
abilities. We expect it to deliver good returns to investors as its sales
momentum endures and it achieves meaningful scale. The company is
right now prioritizing growth over profits and hence, some margin
volatility cannot be ruled out. This we are factoring into our FY20
estimates, where lower tax rates are assumed to be partially passed on
to customers in order to stimulate growth.

Fig 18 – Change in estimates


FY19 FY20
` m New Old % Change New Old % Change
Revenues ($ m) 243 243 (0.1) 307 296 3.8
Revenues 15,675 15,693 (0.1) 19,827 19,104 3.8
EBITDA 450 454 (0.9) 589 638 (7.7)
EBITDA margin % 2.9 2.9 -2 bps 3.0 3.3 -37bps
EBIT 427 431 (0.9) 564 613 (8.0)
EBIT margin % 2.7 2.7 -2 bps 2.8 3.2 -36bps
PBT 434 445 (2.5) 591 636 (7.1)
Net profit 325 298 9.2 443 426 4.0
Source: Anand Rathi Research

Fig 19 – PE band
100

80

60

40

20

0
Oct-15
Dec-14

Dec-15

Nov-16

Dec-17
Jun-15
Aug-15

Jul-16
Sep-16

Jan-17

Jul-17
Sep-17
May-16

May-17
Feb-15
Apr-15

Mar-16

Mar-17

Feb-18

Source: Bloomberg, Anand Rathi Research

Risks
 Business-environment risk: Intrasoft sells products in the US
through its 3P re-selling brand, Stores123, on Amazon as well as
through its own website. Controlling the business environment
currently are e-commerce platform-owners such as Amazon; hence,

Anand Rathi Research 7


9 February 2018 Intrasoft Technologies – Q3 weak, but guidance for a strong FY19; maintaining a Buy

pricing power and customer loyalty lie with them. But 3P operators
also play an important role in a platform owner’s scaling up; hence,
there is a case for an enduring profitable business.
 Client-concentration risk: There is the possibility of Amazon, the
largest customer and dominant in global e-commerce, dealing directly
with manufacturers (of popular products).
 Product-liability risk: Intrasoft only sells brand-named products
registered with the US government. Even though its liability is only
limited to transit, a fault in products could damage perception in the
US of its brand.

Anand Rathi Research 8


Appendix
Analyst Certification
The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the
compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research
analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange
Board of India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have
no bearing whatsoever on any recommendation that they have given in the Research Report.

Important Disclosures on subject companies


Rating and Target Price History (as of 9 February 2018)
TP Share
900
Intrasoft Date Rating (`) Price (`)
800 1 28-Aug-15 Buy 600 432
700 2 05-Nov-15 Buy 640 541
8 3 30-May-16 Buy 570 378
600 2
1 4 08-Nov-16 Buy 590 475
500 4
5 5 06-Jan-17 Buy 580 425
400 6 25-May-17 Buy 550 333
300 3 7 7 14-Aug-17 Buy 530 400
6
8 10-Nov-17 Buy 710 608
200
100
0
Jan-15

Apr-15

Jul-15

Oct-15

Jan-16

Apr-16

Jul-16

Oct-16

Jan-17

Apr-17

Jul-17

Oct-17

Feb-18
Anand Rathi Ratings Definitions
Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described
in the Ratings Table below:
Ratings Guide (12 months)
Buy Hold Sell
Large Caps (>US$1bn) >15% 5-15% <5%
Mid/Small Caps (<US$1bn) >25% 5-25% <5%

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Statements on ownership and material conflicts of interest, compensation - ARSSBL and Associates
Answers to the Best of the knowledge and belief of ARSSBL/ its Associates/ Research Analyst who is preparing this report
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company, at the end of No
the month immediately preceding the date of publication of the research report?
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company No
ARSSBL/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report? No
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months No
ARSSBL/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve No
months
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from No
the subject company in the past twelve months
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant No
banking or brokerage services from the subject company in the past twelve months
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the subject company or third party in connection No
with the research report
ARSSBL/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company. No

Other Disclosures pertaining to distribution of research in the United States of America


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investors (as defined in Rule 15a-6 under the U.S. Securities Exchange Act of 1934 (the “Exchange Act”)) pursuant to the exemption in Rule 15a-6 and any transaction
effected by a U.S. customer in the securities described in this report must be effected through Enclave Capital. ARSSBL accepts responsibility for its contents. Any US
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Neither the report nor any analyst who prepared or approved the report is subject to U.S. legal requirements or the Financial Industry Regulatory Authority, Inc. (“FINRA”) or
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ability to assess such risks may also be limited due to significantly lower information quantity and quality. By accepting this document, you agree to be bound by all the
foregoing provisions.
1. ARSSBL or its Affiliates may or may not have been beneficial owners of the securities mentioned in this report.
2. ARSSBL or its affiliates may have or not managed or co-managed a public offering of the securities mentioned in the report in the past 12 months.
3. ARSSBL or its affiliates may have or not received compensation for investment banking services from the issuer of these securities in the past 12 months and do not expect
to receive compensation for investment banking services from the issuer of these securities within the next three months.
4. However, one or more of ARSSBL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those
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5. As of the publication of this report, ARSSBL does not make a market in the subject securities.
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