[Korea]
ESG Research
The ESG way
Mirae Asset Securities Co., Ltd.
Kwangsoo Lee kwangsoo.lee@miraeasset.com
Mirae Asset ESG Integration
Model
1) Mirae Asset ESG ratings
2) ESG integration methodology
for equity valuations
December 15, 2021
ESG integration investing
 ESG integration investing is an investment approach that incorporates ESG factors into
company valuations.
 We believe ESG integration will become a core element of portfolio construction.
 The central task of ESG integration investing is to reflect qualitative ESG factors in a quantifiable
manner.
 For this purpose, we developed the Mirae Asset ESG Integration Model, which offers two
approaches to ESG integration.
Score-based ESG ratings
 We score companies based on ESG criteria and then rate them based on the results.
 For a given company, we identify financially material ESG issues based on the MSCI system and
then adjust them within the Sustainability Accounting Standards Board (SASB) framework.
Then, for each issue, the MSCI score is weighted by the analyst covering the stock to arrive at
our ESG score.
 Finally, we assign ESG ratings by comparing ESG scores.
Directly incorporating ESG factors into valuations
 We directly reflect ESG factors in NOPAT, the discount rate, and the terminal growth rate used
in DCF valuations.
 ESG factors that can influence a company over the short term are modeled in projected financial
statements (NOPAT).
 ESG factors that can influence a company over the long term are divided into risks and
opportunities. Risks are incorporated into the discount rate, and opportunities are reflected in
the terminal growth rate. The ESG adjustments to the discount rate and the terminal growth
rate are denoted as “Kesg” and “ESG Op,” respectively.
 In estimating the continuing value (CV) for DCF valuation, we used the MSCI Climate VaR to
account for the risks and opportunities from climate change developments in the long term.
 We believe our Mirae Asset ESG Integration Model will allow analysts to quantifiably incorporate
ESG factors into company valuations, while providing investors with a useful framework for ESG
integration investing.
Mirae Asset ESG Integration Model
Source: Mirae Asset Securities Research
Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the US
The full version of this report was published in Korean on Nov. 26, 2021. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT
DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
December 15, 2021 ESG Research

Mirae Asset ESG Integration Model

ESG integration investing and research

Amid growing investor interest in ESG factors as a potential source of excess returns, we
believe the incorporation of ESG factors into financial forecasts and valuation models will
become a core element of portfolio construction. To reflect ESG factors in financial forecasts
(income statements, balance sheets, and cash flow statements) or apply them as premium or
discount factors in company valuations, it is necessary to quantify ESG assessments. This is
the central task of ESG integration investing.

Outside of the ESG context, certain qualitative factors are already quantified and incorporated
in traditional valuation approaches. Indeed, buy-side and sell-side analysts consider not only
financial data but also factors like the business environment, management strategy, and
industry outlook when making financial forecasts. Thus, we believe the process of reflecting
ESG factors in valuations is not as novel and daunting as it may seem.

The Mirae Asset ESG Integration Model offers two approaches to ESG integration investing.
The first approach is scoring; that is, we score companies based on ESG criteria and then rate
them based on the results. For a given company, we identify financially material ESG issues
by matching MSCI key issues to SASB general issue categories (GICs). Then, for each issue,
the MSCI score is weighted by the analyst covering the stock to arrive at our ESG score. We
apply the same method to score industries. Lastly, we assign ratings by comparing ESG scores
across companies and industries. (Ratings will be assigned at a later time.)

Below is a summary of our ESG scoring process using Steel Company A as an example. In the
case of the steel sector, there are six SASB GICs that match with MSCI key issues.

Table 1. Steel sector: SASB GICs and MSCI key issues (shaded areas indicate matches)
SASB dimension SASB GIC MSCI key issue
GHG Emissions Carbon Emissions
Air Quality Toxic Emissions & Waste
Energy Management Carbon Emissions
Environment
Water & Waste Management Water Stress
Waste & Hazardous Material Management Toxic Emissions & Waste
Ecological Impact Biodiversity & Land Use
Human Rights & Community Relations Controversial Sourcing
Customer Privacy Privacy & Data Security
Data Security Privacy & Data Security
Social Capital Access & Affordability Access to Communications
Product Quality & Safety Product Safety & Quality
Customer Welfare Opportunities in Nutrition & Health
Selling Practices & Product Labeling Business Ethics
Labor Practices Labor Management
Human Capital Employee Health & Safety Health & Safety
Employee Engagement, Diversity & Inclusion
Product Design & Lifecycle Management
Business Model Resilience
Business Model
Supply Chain Management Supply Chain Labor Standards
& Innovation
Material Sourcing & Efficiency
Physical Impacts of Climate Change Climate Change Vulnerability
Business Ethics
Competitive Behavior
Leadership & Governance Management of the Legal & Regulatory Environment
Critical Incident Risk Management
Systemic Risk Management
Source: SASB, MSCI, Mirae Asset Securities Research

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December 15, 2021 ESG Research

The MSCI score ⓐ for each ESG issue is assigned a weight by the analyst covering the stock
according to the issue’s materiality (a qualitative evaluation process for internal scoring). First,
we determine the weight of each pillar in consideration of the company’s business
characteristics; in our example, we assign weights to the environmental and social pillars
(based on a sum of 100%). Then, we assign weights ⓑ to each issue according to its
materiality, with the weights of issues under a given pillar (environmental or social) adding
up to 100%. In our example, two issues (Ecological Impact under the environmental pillar and
Labor Practices under the social pillar) are excluded from our weighting despite both having
MSCI scores, as the SASB standards do not consider them to be financially material for the
steel sector.

For Steel Company A, the ESG score ⓒ for each issue is calculated by multiplying the MSCI
score by the weight set by the analyst. For the steel sector, the ESG score ⓒ for each issue is
calculated by multiplying the MSCI industry score by the weight set by the analyst and then
further adjusting for the issue’s financial materiality as specified by the SASB materiality
framework (which identifies issues that can materially affect each industry). To reflect SASB
materiality when scoring an industry, we assign a value of either 1.5 or 1, where 1.5 indicates
that the issue is material for more than 50% of industries in the sector.

ESG industry score = MSCI industry score × weight (assigned by the analyst) × SASB materiality
ESG company score = MSCI company score × weight (assigned by the analyst)

Table 2. Mirae Asset ESG scoring for Steel Company A (example)

MSCI score ⓐ SASB ESG score ⓒ
SASB dimension SASB GIC Weight ⓑ
Industry Company materiality Industry Company
GHG Emissions 1.9 1.9 20% 1.5 0.56 0.37
Air Quality 2.8 1.2 15% 1.5 0.62 0.18
Energy Management 1.9 1.9 20% 1 0.37 0.37
Environment
Water & Waste Management 6.4 4.0 30% 1.5 2.88 1.20
Waste & Hazardous Material Management 2.8 1.2 15% 1.5 0.62 0.18
Ecological Impact 3.6 2.8 Excluded
Human Rights & Community Relations
Customer Privacy
Data Security
Social Capital Access & Affordability
Product Quality & Safety
Customer Welfare
Selling Practices & Product Labeling
Labor Practices 2.6 2.4 Excluded
Human Capital Employee Health & Safety 3.7 3.4 100% 1.5 5.55 3.40
Employee Engagement, Diversity & Inclusion
Product Design & Lifecycle Management
Business Model Resilience
Business Model & Innovation Supply Chain Management
Material Sourcing & Efficiency
Physical Impacts of Climate Change
Business Ethics
Competitive Behavior
Leadership & Governance Management of the Legal & Regulatory Environment
Critical Incident Risk Management
Systemic Risk Management
Source: SASB, MSCI, Mirae Asset Securities Research

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December 15, 2021 ESG Research

Table 3. Mirae Asset ESG scoring results for Steel Company A (example)
MSCI (score and weight) SASB Mirae Asset score
① ② ③ = ② x ESG weight ESG weighting
ESG E/S weights
based on
Industry Company % Industry Company Industry Company Final weights
business
characteristics
E 3.3 4.8 47% 4.4 2.3 1.8 0.9 60% E 40%
S 4.1 4.4 20% 8.2 5.8 2.2 1.5 40% S 27%

G 3.6 3.7 33% 1.2 1.2 G 33%

ESG score 3.6 4.4 5.7 3.7
Source: SASB, MSCI, Mirae Asset Securities Research

The Mirae Asset ESG Integration Model’s second approach to ESG integration is to directly
incorporate ESG factors into company valuations. We use the DCF model for company
valuations. Generally, a DCF analysis forecasts free cash flow (FCF) over a given period and
estimates the present value of that cash flow. For cash flow beyond the forecast period, the
continuing value (CV) is calculated and then discounted to present value. The enterprise value
of a company represents the sum of the present value of the estimated FCF and the present
value of the CV.

Figure 1. Valuing a company using the DCF method

NOPATt - ICt CV T
Corporate value = t + T
(1 + rw) (1 + rw )

FCF = NOPATt - IC t

rw = WACC

CV T = Continuing value as of end-T

(NOPATt - IC t ) (1 + g)
CV T =
rW - g

Source: Mirae Asset Securities Research

To value a company using the DCF model, we need to determine: 1) NOPAT; 2) the discount
rate (rw); and 3) the terminal growth rate (g). Therefore, for the purpose of ESG integration,
we analyze and quantify the impact of ESG factors on these three components. Which of the
components an ESG factor affects depends on the nature of the ESG factor and the time
horizon of its expected effect.

An ESG factor that can directly influence revenue or costs over the short term (five years in
practice) is reflected in NOPAT. Meanwhile, an ESG factor that can influence profits and risks
over the long term is incorporated into either the terminal growth rate or the discount rate.
To capture the impact of ESG factors, we divide them into risks and opportunities according
to their nature and reflect them in different components.

Specifically, among ESG factors that can influence financial statements in the short term,
opportunity factors are those that generally translate into revenue growth and margin
improvements, while risk factors are those that typically lead to higher costs or expenses.
Among ESG factors with potential long-term effects, opportunity factors are modeled in the
terminal growth rate, while risk factors are incorporated in the discount rate.

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December 15, 2021 ESG Research

Table 4. Classification of ESG factors according to their impact on valuation components

Category Time horizon Impact
Revenue growth
Short term
Opportunity factor Margin improvements
ESG factor Long term Reflected in terminal growth rate
Short term Cost increases
Risk factor
Long term Reflected in discount rate
Source: Mirae Asset Securities Research

To directly incorporate ESG factors into company valuations, the first step is to classify each
factor as a risk or opportunity, which can be done using the MSCI framework. In the case of
ESG factors that are expected to influence costs or revenue over the short term, the analyst
can simply revise up costs (for risk factors, such as carbon emissions) or revenue (for
opportunity factors, such as clean tech) to arrive at the NOPAT needed for valuation. The
bigger challenge relates to ESG factors with potential long-term effects.

An opportunity factor with potential long-term effects influences the terminal growth rate (g)
and thus changes the CV. Normally, an ESG opportunity factor increases the growth rate and
the CV. The problem is that it may be unreasonable to assume that the ESG factor-adjusted
terminal growth rate will remain static in the long term. Furthermore, the CV can differ
depending on climate change developments, meaning time risks need to be considered. We
hence modify our formulation by calculating the CV based on the ESG factor-adjusted
terminal growth rate and then multiplying it by the estimated climate VaR, which accounts
for climate change risks and opportunities. We use the MSCI Climate VaR for this purpose. In
this way, we arrive at an adjusted CV (CV x (1- Climate VaR)).

Meanwhile, an ESG risk factor with potential long-term effects is reflected in the discount rate.
For this, we add Kesg (which captures ESG risks) to the cost of equity in calculating the discount
rate. Simply put, the bigger the ESG risk, the higher the cost of equity and discount rate.

The above approach—i.e., directly reflecting ESG factors in valuations—forms the core of the
Mirae Asset ESG Integration Model and is illustrated in <Figure 2>.

Figure 2. Mirae Asset ESG Integration Model

NOPATt - IC t CV T × (1- Climate VaR)

ESG valuation = t + T
(1 + rwe) (1 + rwe)

Reflection of ESG factors

NOPATt = NOPAT in year t, based on financial models reflecting ESG factors

rwe = [(COE + Kesg) × equity ratio] + (cost of debt × debt ratio)
K
( esg : ESG risk factor)

(NOPATt - IC t ) (1 + g)
CV T =
rwe - g

g = Terminal growth rate + ESG Op (ESG opportunity factor)

CVT × (1 - Climate VaR): Climate change-related ESG risks/opportunities

Source: Mirae Asset Securities Research

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December 15, 2021 ESG Research

To summarize, valuing a company using the Mirae Asset ESG Integration Model involves
classifying ESG factors into risks and opportunities and estimating NOPAT, the discount rate,
and the terminal growth rate according to the time horizon of their expected effects.
Forecasting NOPAT falls under the purview of the analyst, but adjusting the terminal growth
rate and the discount rate to reflect ESG factors requires a set of guidelines on the adjustment
range. For this, we use our Mirae Asset ESG scores (company/industry) derived from the SASB
+ MSCI matching model, as well as the MSCI’s own ESG scores (company/industry).

We start by dividing the MSCI key issues used in our scoring process into risks and
opportunities. We then calculate a company’s risk and opportunity scores and compare their
sums with the industry scores. If the SASB standards consider a given issue to be financially
material to the industry, the analyst determines the level of materiality (see “Weight” in <Table
5>). This allows us to compare the materiality of different risks and opportunities before
reflecting them in the discount rate and terminal growth rate within appropriate adjustment
ranges.

<Table 5> illustrates this process. We first classify the MSCI key issues into risks and
opportunities and then identify the MSCI scores (company/industry) for each issue. Each issue
is assigned either 1.5 or 1 based on its SASB materiality, and the analyst assigns weights
accordingly (see “SASB materiality” in <Table 5>). The adjusted ESG score for companies is
formulated as: MSCI score × analyst weight. For industries, it is: MSCI score × analyst
weight × analyst-adjusted SASB materiality.

We sum the ESG scores of risk factors and opportunity factors and compare the company
scores to the industry scores (Mirae Asset scores and MSCI scores) to determine the
adjustment ranges for the discount rate and terminal growth rate. Looking at the example in
<Table 5>, risk factors have a total ESG score of 2.5 for the industry and 1.9 for a company
belonging to that industry (Steel Company A). This differential is much wider than that
between the MSCI’s industry (21.5) and company (18.5) scores. We can conclude that the risks
surrounding Steel Company A are likely to increase and that these risks should be reflected
in the discount rate. The same process applies for opportunity factors; we compare the ESG
scores of opportunity factors and reflect them in the terminal growth rate. Opportunity
factors have a total ESG score of 4.3 for the industry and 3.1 for Steel Company A, and the gap
is again wider than that between the MSCI’s industry (10.1) and company (9.3) scores. For
Steel Company A, our initial discrete calculation put its terminal growth rate at 7%; however,
after factoring in the growth rate of the broader industry, we concluded that a terminal
growth rate lower than 7% was more appropriate.

Table 5. Steel Industry: Terminal growth rate/discount rate calculation (example)

MSCI score ⓐ SASB ESG score ⓒ
MSCI key issue Weight ⓑ
Industry Company materiality Industry Company
Risks
Carbon Emissions 1.8 1.8 5% 1.5 0.1 0.1
Product Carbon Footprint 1.4 1.1 8% 1.5 0.2 0.1
Climate Change Vulnerability 2.1 2.4 10% 1 0.2 0.2
Financing Environmental Impact 3.1 2.8 17% 1 0.5 0.5
Water Stress 1.7 1.2 13% 1 0.2 0.2
Biodiversity & Land Use 1.4 1.4 12% 1.5 0.3 0.2
Raw Material Sourcing 2.1 1.6 17% 1 0.4 0.3
Toxic Emissions & Waste 2.7 1.9 10% 1 0.3 0.2
Packaging Materials & Waste 3.1 2.1 5% 1.5 0.2 0.1
Electronic Waste 2.1 2.2 3% 1.5 0.1 0.1
Total 21.5 18.5 100% - 2.5 1.9
Opportunities
Opportunities in Clean Tech 2.7 3.3 35% 1.5 1.4 1.2
Opportunities in Green Building 3.2 2.9 40% 1 1.3 1.2
Opportunities in Renewable Energy 4.2 3.1 25% 1.5 1.6 0.8
Total 10.1 9.3 100% - 4.3 3.1
Source: Mirae Asset Securities Research

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December 15, 2021 ESG Research

Below, we provide an overview of the procedures and methodology of the Mirae Asset ESG
Integration Model.

Step 1. ESG data collection

First, we conduct company visits and/or analyze company ESG disclosures to collect ESG data
that may influence earnings and financials. Here, our foremost concern is securing credible
data, as it is well-known that companies can distort data via greenwashing. To this end, we
strive to extract ESG data from objective, verified sources.

Step 2. SASB + MSCI matching

We apply the SASB standards as a filter to extract only those ESG factors that are deemed
financially material for the sector in which a company operates. Specifically, we match MSCI
ESG key issues with SASB GICs, allowing us to eliminate ESG factors that fail to satisfy the
SASB materiality standard. Of note, it is possible for a given SASB metric to have more than
one matching MSCI metric. For instance, GHG Emissions (SASB) matches the MSCI’s Carbon
Emissions, Product Carbon Footprint, and Opportunities in Renewable Energy metrics.

The above matching process (and the elimination of unnecessary items) gives us the basic
integration model. Our integration of the SASB and MSCI frameworks is confined to item
reclassification and does not involve changes in the risks/opportunities originally assigned to
the MSCI data (to be reflected in DCF valuations). For convenience, <Table 6> contains only
one MSCI issue per SASB item.

Table 6. SASB + MSCI basic matching

SASB Dimension SASB GIC KI1 (MSCI)
GHG Emissions CARBON_EMISSIONS_
Air Quality TOXIC_EMISS_WSTE_
Energy Management ENERGY_EFFICIENCY_
Environment
Water & Waste Management WATER_STRESS_
Waste & Hazardous Material Management E_WASTE_
Ecological Impact BIODIV_LAND_USE_
Human Rights & Community Relations CONTROV_SRC_
Customer Privacy PRIVACY_DATA_SEC_
Data Security PRIVACY_DATA_SEC_
Social Capital Access & Affordability ACCESS_TO_COMM_
Product Quality & Safety PROD_SFTY_QUALITY_
Customer Welfare OPPS_NUTRI_HLTH_
Selling Practices & Product Labeling BUS_ETHICS_FRAUD_
Labor Practices LABOR_MGMT_
Human Capital Employee Health & Safety HLTH_SAFETY_
Employee Engagement, Diversity & Inclusion LABOR_MGMT_
Product Design & Lifecycle Management OPPS_NUTRI_HLTH_
Business Model Resilience FINANCING_ENV_IMP_
Business Model &
Supply Chain Management SUPPLY_CHAIN_LAB_
Innovation
Material Sourcing & Efficiency RAW_MAT_SRC_
Physical Impacts of Climate Change Climate Change Vulnerability
Business Ethics BUS_ETHICS_FRAUD_
Competitive Behavior BUS_ETHICS_FRAUD_
Leadership & Governance Management of the Legal & Regulatory Environment
Critical Incident Risk Management PROD_SFTY_QUALITY_
Systemic Risk Management BUS_ETHICS_FRAUD_
Source: SASB, MSCI, Mirae Asset Securities Research

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December 15, 2021 ESG Research

Step 3. Calculation of ESG NOPAT and ESG operating cash flow

The next step is incorporating selected ESG factors into the estimated financial statement to
calculate NOPAT. To estimate the influence of ESG factors on balance sheets, income
statements, and cash flow statements, it is helpful to draw up an “ESG impact map” to
understand how each financial statement item is affected by the selected ESG factors. The
time window covered by this estimation should be at least three to five years.

The estimated cash flow is reflected in DCF valuations. For NOPAT calculation, we use ESG
factors with a clear quantitative effect on the financial statement over the short to medium
term.

Step 4. ESG-adjusted discount rate

An ESG discount rate (rwe) is computed as follows:

rwe = [(cost of equity + Kesg*) × equity ratio] + (cost of debt × debt ratio)

*Kesg: ESG risk factor

Kesg, which captures ESG risks and is added to the WACC, is measured using the MSCI
framework together with the SASB materiality framework. Specifically, we sum the ESG scores
of long-term risk factors and compare company scores to industry average scores.

Step 5. ESG-adjusted terminal growth rate

The CV needs to be calculated to estimate the value of the company beyond the forecast
period. For this, it is crucial to integrate ESG factors into the terminal growth rate (typically
using an industry growth rate estimated based on historical data). The ESG-adjusted terminal
growth rate is calculated as:

g = terminal growth rate ± ESG Op (reflecting ESG opportunities)

ESG Op is measured using the MSCI system together with the SASB materiality framework.
Specifically, we sum the ESG scores of long-term opportunity factors and compare company
scores to industry average scores.

Step 6. ESG-adjusted CV
Climate change needs to be examined separately due to its significant business impacts
across all companies. To that end, we apply the MSCI Climate VaR to our CV estimation as the
final step in our DCF valuation.

To derive a company’s future terminal value, we use the MSCI Climate VaR, which measures
the physical and transition risks that climate change may have on the value of a company and
its asset holdings over a 15-year time horizon. Of the three transition scenarios, which are
differentiated by temperature targets by 2100 (3°C/2°C/1.5°C), we use the 2°C transition
scenario. For example, for Steel Company A, the Climate VaR under the 2°C scenario
is -54.37%, and this can be applied to the formula below to derive the firm’s ESG-adjusted CV
[CV × (1 - 54.37%)].

CVT_esg = CVT × (1 - Climate VaR)

Step 7. Valuation
After calculating the ESG-adjusted operating cash flow, discount rate, terminal growth rate,
and residual value, we can use them to derive the DCF-based EV and ultimately shareholders’
equity (EV minus net debt), aiding the ESG integration investment process.

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Appendix 1

Important disclosures and disclaimers

Analyst certification
The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean
securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each Analyst
responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst about any
and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly related to
the specific recommendations or views contained in this report. Mirae Asset Securities Co., Ltd. (“Mirae Asset Securities”) policy prohibits its Analysts and
members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director,
or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other
benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. Like all employees of Mirae
Asset Securities, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business
units, the institutional equities, investment banking, proprietary trading, and private client divisions. At the time of publication of this report, the Analysts do
not know or have reason to know of any actual, material conflict of interest of the Analyst or Mirae Asset Securities except as otherwise stated herein.

Disclaimers
This report was prepared by Mirae Asset Securities, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information
and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently
verified and Mirae Asset Securities makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness, or
correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an English translation
of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report.
The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common
practices, laws, and accounting principles, and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset
Securities or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof.
This report is for general information purposes only and is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any
securities or other financial instruments. The report does not constitute investment advice to any person, and such person shall not be treated as a client of
Mirae Asset Securities by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or
needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained
herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income
from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future
returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Securities, its affiliates, and their directors, officers, employees, and agents
do not accept any liability for any loss arising out of the use hereof.
Mirae Asset Securities may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report.
The reports may reflect different assumptions, views, and analytical methods of the analysts who prepared them. Mirae Asset Securities may make
investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Securities, its affiliates, and their
directors, officers, employees, and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or
offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either
as principals or agents. Mirae Asset Securities and its affiliates may have had, or may be expecting to enter into, business relationships with the subject
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information only for those authorised recipient(s). MACM is inter alia a Securities and Exchange Board of India (“SEBI”) registered Research Analyst in India
and is not registered outside India. MACM and Mirae Asset, Korea are group entities. MACM makes no guarantee, representation or warranty, express or
implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein. The user assumes the entire risk of any
use made of this information. This report has been provided for assistance only and is not intended to be and must not alone be taken as the basis for an
investment decision. Recipient must read the entire Appendix 1 to the report carefully for Important Disclosures & Disclaimers.
All other jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset
Securities or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae
Asset Securities and its affiliates to any registration or licensing requirement within such jurisdiction.

Mirae Asset Securities Research 9

December 15, 2021 ESG Research

Mirae Asset Securities International Network

Mirae Asset Securities Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd.
One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42
Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street,
26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ
Korea Kowloon United Kingdom
Hong Kong
Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000

Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM
810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building
New York, NY 10019 Los Angeles, California 90071 Vila Olimpia
USA USA Sao Paulo - SP
04551-060
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Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100

PT. Mirae Asset Sekuritas Indonesia
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#406, Blue Sky Tower, Peace Avenue 17
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Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300)

Shanghai Representative Office
38T31, 38F, Shanghai World Financial Center
100 Century Avenue, Pudong New Area
Shanghai 200120
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Ho Chi Minh Representative Office Mirae Asset Capital Markets (India) Private Limited
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Tel: 86-21-5013-6392 Tel: 84-8-3910-7715 Tel: 91-22-62661336

Mirae Asset Securities Research 10