Corporate Profile Private & Confidential

Corporate Profile
Private & Confidential

Electrotherm (India) Limited

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Corporate Profile Private & Confidential

Contents
Corporate Profile..................................................... 3 Registered & Corporate Office ................................... 3 Vision, Mission and Values ........................................ 4 Value Proposition .................................................. 4 Promoters & Founders ............................................. 5 Lines of Business ................................................... 6 Awards and Certifications......................................... 7 Peoples Organisation ............................................. 7 Market Outreach ................................................... 9 Manufacturing Facilities .......................................... 10 Joint Ventures and Acquisitions ................................. 11 Social Initiatives ................................................... 12 Products & Services ................................................13 Induction Melting Furnaces ...................................... 15 Transformers .......................................................16 Refining Equipment ...............................................18 Turnkey Solutions & EPC .........................................20 Galvanized & Fabricated Structures ............................21 Core Competence .................................................21 TMT Bars ............................................................22 Angles ...............................................................23 Ductile Iron Pipes ..................................................24 Electric Vehicles - YoBykes ......................................25 Solar Water Heating Systems ....................................26 EPC Solution for Solar PV Projects ..............................27 Financial Highlights ................................................ 28 Notice to the reader & Disclaimer .............................. 31

Electrotherm (India) Limited

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Corporate Profile Private & Confidential

Corporate Profile
Founded in 1986, Electrotherm (India) Ltd is essentially an engineering company with diversified business interests. Its prime objective is to leverage its engineering knowhow and background in power electronics to integrate backward so as to have a strong presence in related businesses. Although it has a dominant presence in manufacturing Induction Furnaces (market share of more than 50%) it has diversified into construction steel, engineering and structural steel, stainless steel, ductile iron pipes and electric vehicles. In addition it is executing several turnkey projects in steel and foundry segment.

A reputed, successful group with a diversified portfolio of businesses Operates mainly three divisions Engineering & Projects, Steel & Pipes and Electric Vehicles Led by technocrats, powered by innovation, empowered by people Three-decades of excellence in engineering Established brand name and market leadership in Induction Melting Furnace and Refining Equipments Pioneer in Electric two-wheelers and largest selling electric two-wheelers in Indian market YoBykes Committed investment in R&D and human capital Industry-wide recognition in B2B and B2C segments Supported by leading domestic and foreign private equity investors for funding its expansion plans Listed on the Bombay Stock Exchange and National Stock Exchange Rated as Fastest growing mid-sized BSE-listed company in 2008 (Dalal Street)

Registered & Corporate Office

Registered Office : A-1, Skylark Apartment Satellite Road, Ahmedabad 380015 Phone Fax : +91 79 26768844 Corporate Office: 72, Palodia. Via. Thaltej, Ahmedabad 382115. Phone & Fax : +91 2717 234 553 +91 2717 660 628

Mumbai Office: 405, Abhishek Building Opp: Lakshmi Industrial Estate Nr. Monginis Factory Andheri (West) Mumbai +91 22 40212889

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Vision, Mission and Values

To be a nimble, dynamic and admired group with global presence To achieve profitable growth through customer-centric products and services and technological leadership

Value Proposition

Innovation is the centerpiece Pioneer in Metallurgical Equipment for Steelmaking Expertise and R&D competence in Power Electronics Project Engineering & Implementation Team for medium & large size projects Speedy project implementation enabled by fast decision-making ability Employee base of 2200 people with over 400 engineers, apart from contract employment Over the years, the Company has constantly focused on integrating its operations, expanding existing capacities and entering value-added product segments

Vision

Mission

Always innovate for a better tomorrow

Value

Mutual Respect and Trust Integrity

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Promoters & Founders

Mukesh Bhandari - Chairman

Pioneered and developed high-quality Induction Furnaces and refining equipments for steel-making Conceived and productionised Indias largest-selling electric two-wheelers Honoured by former Presidents of India, Giani Zail Singh and R.Venkatraman, for developing indigenous technology and eminence in the field of engineering

Shailesh Bhandari - Managing Director

Has contributed immensely in market expansion and building corporate clientele Provided strong drive to business by focusing on customer satisfaction Honoured by associations such as Indian Institute of Metals (IIM KK Award) and Institute of Indian Foundrymen for his contribution to the industry

Electrotherm (India) Limited

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Lines of Business Electrotherm

Engineering & Projects

Steel & Pipes

Electric Vehicles (YoBykes)

Renewables

Steel Making Equipments

Steel, Special Steel

Solar Thermal Systems

Transformers

DI Pipes

Solar PV EPC Services

G&FS

Projects

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Awards and Certifications

Awards Certifications

IMM-Binatone Award National Award - Udyog Patra IEEMA Award Vasvik Research Award Dhatu Nayak Award for designing Overdrive Automotive Product of the Year Award 2007 INDINOX-2010 award .. and several others

TUV o Steel 9001:2008 o E&P 9001:2008 o Auto 9001:2008 CE marking Kitemark BIS certification

Peoples Organisation
Thrust areas Initiatives

Cultural transformation to prepare for and enable growth HR systems and policies Leadership development Training and Development for capability building Goals and target setting for performance management

ET Academy of Excellence for empowerment Competency Development Centre Streamlining of HR policies & PMS enabled by KPMG Automation of HR processes through SAP

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Human Resources
Electrotherm is a research-driven organization. It believes that employees are key contributors of its business success. With its prime focus on attracting and retaining the best talent in the industry, the company offers excellent work environment and competitive compensation packages. The company ensures feeling of well-being in employees through care and respect. In order to sustain growth of the company, it has developed robust processes to evaluate, recruit and retain employees.

In the last five year, there has been a tremendous growth in the number of employees. With an endeavour to link careers to competencies, individual preferences and organizational needs, an elaborate performance management system has been established.

Electrotherm (India) Limited

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Market Outreach
Market Outreach National Market Outreach - Global

Robust distribution network across the country. Regional offices and branches Distributors / agents / dealers Induction Melting Furnace Over 16MMT or 25% of steel produced in India is through furnaces supplied by Electrotherm Electro TMT Plus is a preferred TMT brand in Gujarat market DI Pipes have product approvals with most government departments and large private projects across India Yobykes 200 YoWorld service centres and over 80,000 satisfied customers spread across the country

Electrotherm has developed a strong international presence

with 24 installation centers and 9 sales and service centers around the world Over 3000 Induction Furnaces have been installed across the world having total steel melting capacity of about 80 MTPA Proven track record of successfully executing multi-million dollar EPC projects in several countries. A mega EPC project for Steel mill in Tanzania is in the pipeline

Electrotherm (India) Limited

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Manufacturing Facilities

Ahmedabad
o o o

Induction Furnace, Heating equipments & Transformer manufacturing Yobyke - R&D Continuous Casting Machine

Sponge Iron Kiln (600 TPD), Blast Furnaces (128 mtr and 64 mtr), Steel Melting Shop and Captive Power Plant (30MW) for making o TMT bar (Rolling mill capacity of 0.24 MTPA) o Angles ( Structural Steel Mill capacity of 0.07 MTPA) o Ductile Iron Pipe (0.192 MTPA) Yobyke Assembly line & Paint shop (0.288M units pa)

Kutch (2 locations)

Bellary Baroda
o

Blast Furnace (175 mtr) and Captive Power Plant (2.5 MW) Galvanizing & fabrication of structures

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Joint Ventures and Acquisitions

The growth journey of ET has been marked by JVs and strategic acquisitions Divisions Engineering Projects Special Steel Target Company Hylsamex S.A., subsidiary of Techint Group Hans Ispat Place HYL Project implemented in UAE Kutch, Gujarat Strategy DI Pipes Shree Ram Electrocast Bellary, Karnataka Engineering- G& FS BM Engineering Mukesh Engineering
HYL

Baroda, Gujarat

Collaboration with Hylsamex S.A. de C.V (Mexicos second largest steel manufacturer) JV to set up gas based direct reduction iron plants Additional capacity in Rolling Mill and TMT bars production Serves the Western region which has seen high Demand Forward integration of existing Blast Furnace to manufacture Ductile Iron Pipes Expansion to add DI Pipe capacity of 0.175 MMT Large market access in South India with limited competition Forward integration into value-added galvanised and fabricated structures
BM Engineering, Baroda

Hans Ispat Limited, Kutch

Shree Ram Electrocast

Electrotherm (India) Limited

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Social Initiatives

Mrs. Jyoti Bhandari leads the CSR activities o Ph.D. in Economics and teaching experience of over 15 years Bhandari Charitable Trust o Helping the lower segment of the society through innovative technology. o Funded and developed electric tricycle for physically challenged people Health o Medical camps in villages around Ahmedabad and in Kutch o Donation of tri-cycles in polio camps Education o Bal Vidya Mandir in Vondh village o Computers and IT equipment distribution o Merit scholarships to children from loweconomic background Women empowerment o Training in sewing and distribution of sewing machines Indus Institute of Technology and Engineering o Promoted for specialisation in metallurgy & automobile o Robust infrastructure for learning and development

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Corporate Profile Private & Confidential

Products & Services

Electrotherm (India) Limited

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Corporate Profile Private & Confidential

E&P Induction Melting Furnaces Transformers Induction Heating & Hardening Eqipments Metal Refining Konverter & LRF Continous Casting Maachine Turnkey Solutions & EPC Galvanised & Fabricated Structures

Steel & Pipes TMT Bars Angles Ductile Iron Pipes Stainless Steel Flats

Electric Scooters,Yo-bykes Electric Scooters Motors Batteries

Renewables Solar Water Heating Systems Domestic and Industrial EPC solution for Solar PV projects

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Induction Melting Furnaces

Induction Melting Furnace for Steel Melt Shop Induction Melting & Holding Furnaces for Foundries Furnace sizes ranging from 1 kg to 40 ton In Mar2010, ET designed and developed worlds largest 40-ton Induction Furnace for melting application and commissioned the same successfully in Nagpur. This will bring down the cost of steel making by approx. Rs.500/ton Solid State Power Supply Units from 3 kW to 14 MW

1. Top-Blcok Assembly 3. Yokes made out of CRGO Steel bolted through M.S. Channel to Support the power coil, guide the stray Magnetic flux outside the coil and improve coil power factor 5. Bottom Block Assembly. 7. Former

2. Heavily extruded rectangular section coil ensures higest efficiency, strength and rigidity 4. Top and bottom cooling coils evenly distribute temperature gradients through our the refractory to prevent overheating and extend refractory life. 6. Lining Failure detection Probe 8. Fume Extraction Ring (Optional)

Electrotherm (India) Limited

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Transformers

Transformer Manufacturing Range Converter Transformers and Induction Furnace Transformers Arc Furnace Transformers K-Factor Transformers System Grounding Transformers Scott-T connected Transformers Zig-zag Transformers Gas/Air cushioned Transformers Unitised/ Packaged sub-stations Distribution Transformers Power Transformers Booster/ Regulating/ Auto Transformers
Electrotherm (India) Limited

Upto 25 MVA, upto 36 kV Upto 30 MVA, upto 66 kV Upto 25 MVA, upto 33 kV Upto 33kV

Upto 15 MVA, upto 33 kV Upto 2500 kVA, upto 36 kV Upto 63 MVA, upto 132 kV Upto 63 MVA, upto 132 kV
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National sales & Service network

Catering to a niche market Began with manufacturing Furnace Transformers; more than 85% of ET furnaces are supplied with ET transformers; have already replaced the incumbent leader in this market Other niche products being offered o Traction Transformers o Power and Distribution Transformers (incl. Ultra High Voltage) o Dry Type Transformers and Reactors Growing requirement o Increasing demand in infrastructure, metallurgy and engineering sectors o Traction Transformers in Railway Industry Achievement o created one of the best designs of Furnace Transformer with the most complex configuration 6750 KVA, 24 Pulse 33/0.850kV.

Corporate Profile Private & Confidential

Induction Heating & Hardening Equipments

We make Induction Heating & Hardening Equipments used in: Engineering industry Forging industry Automobile industry Other specialized applications.

Electrotherm (India) Limited

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Refining Equipment

Metal Refining Konverter o ET pioneered the use of MRK o Metallurgical equipment for AOD process o Used to produce SS, Low Carbon Alloy Steel and Structural Steel o capable of treating batches of as low as 20T to as high as 100T capacity post melting Ladle Refining Furnace o For producing high quality steel o AC and DC versions o For treating batches from 15-150 T capacity o Improves overall productivity and in desulphurisation

Electrotherm (India) Limited

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Continuous Casting Machine

Started manufacturing of Modular casters for making billets from 60 mm to 130 mm. The caster is designed considering with following advantages than any caster available in the market: Value-added product for Induction Furnace manufacturer High Speed Modern concept for higher plant performance Available in 2-strand and 3-strand Low maintenance and operating cost. Economical and best suitable for even small capacity furnaces i.e.8 to 10 tn

Electrotherm (India) Limited

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Turnkey Solutions & EPC

A total solution from concept to commissioning Incorporates technical and non-technical services and processes Includes layout designing, choreography, inter-linking various sections (furnace room, electrical room, water complex, shed), training clients engineers, other non-technical activities (recruiting, process management, etc.) Solutions o Turnkey Projects for Steel Billet / Ingot Plant o Turnkey Projects for Integrated Plant through DRI-SMS route Most preferred mini-steel plant makers up to 0.5 mtpa capacity through alternative routes Projects executed for several customers; a representative sample: o Steelmakers, Emirates Steel, Erbil Steel Company, Ilhan Metalurji Industrisi, Bahrain Ferro Alloys, Mega Demir Mamulleri San ve Tic. Ltd, Kabkan Steel Co, Hill Metal EST, Bilecik Demir Celik , Gopani Iron & Power, BSRM, Samsung Overseas Ltd, Aceiries De Cote Divoire, Amreli Steels

Turnkey Projects

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Galvanized & Fabricated Structures

In-house Fabrication and Galvanizing facilities o Stateofthe-art manufacturing facility in Baroda o GETCO approved plant Leading in Gujarat with marquee customers Latest hydraulic fabrication line; heavy duty machine to perform heavy bending; efficient EOT Cranes for material handling Dispatches measure up on mechanical properties like yield strength, percentage elongation; tested and certified by universal testing machine One of the few end-to-end integrated solution providers for structures required for transmission lines, power substations, telecom, railways, wind mills and solar applications Facility being upgraded to best-in-class manufacturing setup with major approvals 60000 tpa manufacturing capacity Well connected to the major cities by NH No. 8. At Galvanizing unit o Digital thermo couple to control temperature. o Two Bath of size 8.5 x 0.9 x 1.5 mts. o Well equipped lab to keep a strict vigil on galvanizing quality.

Core Competence
Integrated manufacturing process right from making of steel till towers. Financial competence to handle independence projects. In-house designing and planning facility. Competent team to handle turnkey projects for Sub-Stations.

Electrotherm (India) Limited

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TMT Bars

Electro TMT plus Electro CRS gold o Used in construction and infrastructure projects o Superior shape, Robust quality o Mechanical and metallurgical properties as per standards o High yield strength with good ductility o Manufacturing through captive billets ensures quality o Surpasses IS requirements o BIS-certified o No maintenance required * o Suitable in seismic regions Electro TMT Plus has emerged as the most preferred TMT brand in Gujarat and commands a premium

Electrotherm (India) Limited

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Angles

Fine grain micro structure and optimum mechanical properties; free of surface flaws Dispatches measure up on mechanical properties like yield strength, percentage elongation; tested and certified by universal testing machine Production capacity of 72000 mtpa Structure mill is certified by Power Grid (PGCIL) Long-term supplier relationships established with marquee customers for supplies of transmission line angles Strategically located near the Kandla and Mundra port, the new plant has full access to major cities as well as states of raw material suppliers. This allows for ready availability of structural angles conforming to MS and special grades of HT, S355JO, S275JO.

Electrotherm (India) Limited

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Ductile Iron Pipes

DI pipes are a result of our constant endeavour towards ensuring better quality of life Provides excellent means of water transport keeping its quality intact Installed capacity of 192,000 tpa BIS approvals upto 1100 mm already received; approval for 1200mm is under process Prestigious international KITEMARK certification received Robust sales and distribution network across the country; approvals /registrations in place from most state government bodies and large infrastructure players.

Electrotherm (India) Limited

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Electric Vehicles - YoBykes

Most successful, largest-selling electric scooters in India with over 80,000 satisfied customers Yobykes has become the identity of the category Wide network of over 200 YoWorlds for sales, service & spares; more than 4000 LGOs across India to provide service and spares to the customers. State-of-the-art manufacturing facility with 288,000 units p.a. capacity Winner of Overdrive Automotive of the Year 2007 Award 7 models introduced till date motor power ranging from 250W to 1800W Only company in India to have its own designs of controllers and chargers for high-speed, high-power two-wheelers ISO: 9001:2008 certified ET also leads the segment by being the founder member of Society of Manufacturers of Electric Vehicles (SMEV) in India Three-wheelers are being developed

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Corporate Profile Private & Confidential

Solar Water Heating Systems

Eco-Friendly water heating solutions Easy Installation and Low Maintenance

Domestic MNRE approved Based on highly efficient thermosiphon system Capacities from 100 to 500 LPD Industrial Higher solar radiation absorption and greater heat
retention Choice of Thermo-siphon and pressurised systems Capacities from 1000 to 3000 LPD

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EPC Solution for Solar PV Projects

End-to-end turnkey solutions for construction and operation of grid-connect (utility-scale) and off-grid (standalone/hybrid) photovoltaic (PV) systems. Including system engineering, equipment supply, civil works and installation & commissioning services. ETs in-house manufacturing capabilities of several key components and equipments of a Solar PV Plant namely Power Transformers, Mounting Structures, Switchgear Panels, Transmission Line Towers, Earthing Systems along with its expertise in several key activities like construction of 66/132 kV switch yard etc. Skilled and experienced team of talented, energetic engineers comprising of experts hailing from diverse engineering disciplines

Highly capable and committed team of project managers Leveraging on experience in executing other complex projects Strategically located for execution of most of the projects coming up in Gujarat & Rajasthan Value of integrated solution provider having in-house engineering and manufacturing setup In-depth local knowledge is an advantage in implementing civil and structural elements of project Cost benefit, reduced project risks and enjoy seamless and time-bound project implementation.

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Financial Highlights

Electrotherm (India) Limited

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Balance Sheet [Amount Rs. CR]

Particulars Mar '10 Mar '09 Mar '08 Mar '07 Sources Of Funds Total Share Capital 23.48 23.48 22.98 21.13 Reserves 680.62 436.31 358.70 191.81 Networth 704.10 459.78 384.68 218.79 Secured Loans 1225.77 1031.97 582.75 307.31 Working Capital Limit 425.31 399.21 230.92 55.32 Unsecured Loans 289.97 197.39 237.62 82.78 Total Debt 1515.74 1229.36 820.37 390.09 Defrred Tax Liability 81.45 69.42 52.16 25.57 Total Liabilities 2301.29 1758.56 1257.21 634.45 Application Of Funds 0.00 0.00 0.00 0.00 Gross Block 1641.60 760.83 617.74 310.08 Less: Accum. Depreciation 190.33 114.66 63.55 31.67 Net Block 1451.27 646.17 554.19 278.41 Capital Work in Progress 122.14 451.02 134.73 105.23 Investments 7.27 2.20 2.13 0.07 Current Assets 1228.94 917.88 694.67 477.60 Current Liabilities 546.92 297.84 158.56 239.12 Net Current Assets 682.02 620.04 536.11 238.48 Miscellaneous Expenses 38.59 39.14 30.05 12.26 Total Assets 2301.29 1758.57 1257.21 634.45 Contingent Liabilities 36.20 47.62 77.66 5.50 Book Value (Rs) 603.07 390.18 336.85 219.99 Mar '06 16.77 26.92 58.72 182.79 0.00 31.28 214.07 0.00 272.79 0.00 166.63 13.90 152.73 36.27 0.07 182.65 100.56 82.09 1.64 272.80 9.13 66.47

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Corporate Profile Private & Confidential

Profit & Loss account [Amount Rs. CR]

Particulars Total Income Expenditure Raw Materials Other Expenditure Total Expenses PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) Mar '10 Mar '09 Mar '08 1998.51 1769.04 1338.43 1395.81 1253.44 920.99 309.83 265.78 200.48 1705.64 1519.22 1121.47 292.87 249.82 216.96 134.98 115.80 79.04 157.89 134.02 137.92 72.38 51.79 31.86 5.23 4.94 2.50 80.28 -0.81 79.47 25.68 54.60 309.82 46.95 25 603.07 77.29 1.53 78.82 26.56 50.72 265.79 43.56 25 390.18 103.56 0.16 103.72 41.39 62.18 200.48 55.99 25 336.85 Mar '07 759.61 521.79 123.10 644.89 114.72 35.38 79.34 17.85 0.18 61.31 0.15 61.46 18.12 43.20 123.10 46.51 20 219.99 Mar '06 356.30 254.08 56.38 310.46 45.84 9.47 36.37 7.05 29.20 -6.95 22.25 10.41 11.84 56.38 23.40 20 66.47

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Notice to the reader & Disclaimer

The Corporate Presentation (the presentation) of Electrotherm (India) Ltd. (the company) is meant for informational purposes and is not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. While utmost care has been taken in preparing this presentation, we claim no responsibility for its accuracy. Any opinions expressed in the presentation are subject to change without any notice and this presentation is not under any obligation to update or keep current the information contained herein. The information contained in the presentation is selective and is subject to updates, expansion, revision and amendment. It does not purport to contain all the information that the recipients may require. No obligation is accepted to provide recipients with access to any additional information or to correct any inaccuracies, which may become apparent. Past performance is not necessarily indicative of future results. We accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this presentation.

This presentation may contain forward-looking statements. Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (in many cases are outside the control of the company and its directors) which may cause the actual results or performance of the company to be materially different from any future results or performance expressed or implied by such forward-looking statements.

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