1QFY2014 Result Update | Steel

August 16, 2013

Steel Authority of India

Performance Highlights

NEUTRAL
CMP Target Price
Investment Period

`44 -

Quarterly performance-Standalone
Particulars (` cr) Net Sales EBITDA % margin Adjusted PAT 1QFY14 10,106 967 9.6 539 1QFY13 10,641 1,515 14.2 953 % chg (yoy) (5.0) (36.2) (467)bp (43.5) 4QFY13 12,162 914 7.5 430 % chg (qoq) (16.9) 5.8 206bp 25.3

Stock Info Sector Market Cap (` cr) Net debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Steel 18,007 8,997 1.2 102/38 392,431 10 19,368 5,742 SAIL.BO SAIL@IN

Source: Company, Angel Research

SAIL reported a disappointing 1QFY2014 profitability performance due to lower realizations and higher costs. We recommend a Neutral rating on the stock. Lower realizations drag top-line: During 1QFY2014, SAILs net sales declined by 5.0% yoy to `10,106cr (below our estimate of `10,452cr), mainly due to lower-than-expected realization which although was partially offset by higher volumes. The companys realizations stood at `38,573/tonne, compared to `42,563/tonne in 1QFY2013. Its volumes however increased by 4.8% yoy to 2.6mn tonne. Higher staff costs and other expenses dent EBITDA: The staff costs for the company increased 15.2% yoy to `2,295cr and other expenses increased by 5.0% yoy to `1,797cr. The EBITDA therefore decreased by 36.2% yoy to `967cr and EBITDA margin contracted by 467bp yoy to 9.6%. Higher interest expenses drag bottom-line further: The company reported a net interest expense of `63cr in 1QFY2014 compared to a net interest income of `82cr in 1QFY2013. The tax expenses however decreased by 77.7% yoy to `70cr due to MAT credit benefits in the quarter. Nevertheless, the adjusted net profit excluding forex loss of `88cr declined by 43.5% yoy to `539cr (above our estimate of `486cr). Outlook and valuation: We expect SAILs operational and financial performance to be impacted by 1) inability to maintain/raise sales volumes amidst slower demand growth; 2) higher employee costs, and 3) delays/cost overruns in its brownfield expansion projects. SAIL is on the verge of expanding its saleable steel production capacity from 12.4mn tonne to 20.2mn tonne by FY2015. However, the current rich valuation of 4.7x FY2015E EV/EBITDA discounts its anticipated volume growth over FY2013-FY2016. Hence, we recommend a Neutral rating on the stock. Key financials - Consolidated
Y/E March (` cr) Net sales % chg Net profit % chg EPS (`) EBITDA margin (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2012 45,665 6.8 3,545 (28.2) 8.6 13.3 4.8 0.5 9.2 7.8 0.6 4.5 FY2013E 44,060 (3.5) 2,181 (38.5) 5.3 11.1 7.5 0.4 5.4 5.8 0.7 6.0 FY2014E 54,227 23.1 2,187 0.3 5.3 9.2 8.3 0.4 5.2 4.7 0.6 6.3 FY2015E 63,538 17.2 2,804 28.2 6.8 10.9 6.5 0.4 6.5 6.6 0.5 4.7

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 80.0 11.3 5.4 3.3

Abs. (%) Sensex SAIL

3m (1.8) (29.6)

1yr 9.2 (49.7)

3yr 6.6 (77.4)

Bhavesh Chauhan
Tel: 022- 39357800 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Vinay Rachh
Tel: 022- 39357600 Ext: 6841 vinay.rachh@angelbroking.com

Source: Company, Angel Research; Note: CMP as of August 14, 2013

Please refer to important disclosures at the end of this report

SAIL | 1QFY2014 Result Update

Exhibit 1: Quarterly performance - Standalone

(` cr) Net sales Raw material % of net sales Power & fuel % of net sales Staff cost % of net sales Other expenditure % of net sales Total expenditure Operating profit OPM% Other operating income EBIDTA % of net sales Interest income/(Expenses) Depreciation Other income Exceptional items Profit before tax % of net sales Current tax % Tax rate Profit after tax Adjusted PAT
Source: Company, Angel Research

1QFY14 10,106 4,057 40.1 1,153 11.4 2,295 22.7 1,797 17.8 9,301 805 8.0 162 967 9.6 (63) 393 97 (88) 521 5.2 70 13.4 451 539

1QFY13 10,641 4,335 40.7 1,224 11.5 1,992 18.7 1,710 16.1 9,262 1,379 13.0 137 1,515 14.2 82 402 71 (257) 1,010 9.5 314 31.1 696 953

yoy (%) (5.0) (6.4) (5.8) 15.2 5.0 0.4 (41.6) 18.3 (36.2) (2.2) 36.9 (48.4) (77.7) (35.3) (43.5)

4QFY13 12,162 5,654 46.5 1,209 9.9 2,473 20.3 2,081 17.1 11,417 746 6.1 168 914 7.5 (14) 184 8 16 741 6.1 294 39.7 447 430

qoq % (16.9) (28.3) (4.6) (7.2) (13.7) (18.5) 8.0 (3.7) 5.8 360.8 113.9 1,119.5 (29.7) (76.2) 1.0 25.3

FY13 43,961 19,186 43.6 4,820 11.0 8,637 19.6 7,278 16.6 28,505 4,040 9.2 637 4,677 10.6 79 1,393 107 (229) 3,241 7.4 1,070 33.0 2,170 2,400

FY12 45,639 21,706 47.6 4,425 9.7 7,917 17.3 (5,398) (11.8) 40,235 5,404 11.8 (688) 6,092 13.3 7,838 1,566 (91) 262 5,139 11.3 1,608 31.3 3,543 3,793

yoy (%) (3.7) (11.6) 8.9 9.1 (234.8) (29.2) (25.2) (192.7) (23.2) (99.0) (11.1) (217.4) (36.9) (33.4) (38.7) (36.7)

Exhibit 2: 1QFY2014 Actual vs Angel estimates

(` cr) Net sales EBITDA EBITDA margin (%) Adjusted PAT
Source: Company, Angel Research

Actual
10,106 967 9.6 539

Estimates
10,452 870 8.3 486

Variation (%)
(3.3) 11.1 124bp 10.9

August 16, 2013

SAIL | 1QFY2014 Result Update

Result highlights
Lower realizations drag top-line
During 1QFY2014, SAILs net sales declined by 5.0% yoy to `10,106cr (below our estimate of `10,452cr), mainly due to lower realizations which although were partially offset by higher volumes. The companys realizations stood at `38,573/tonne, compared to `42,563/tonne in 1QFY2013. Its volumes however increased by 4.8% yoy to 2.6mn tonne. Although production stood at 3.2mn tonne, sales volumes stood at only 2.62mn tonne, indicating SAILs inability to raise volumes amidst low domestic demand.

Exhibit 3: Sales volume stood at 2.6mn tonne

3.5 3.0 2.5 2.6 3.3 2.8 2.5 2.6 3.2 2.6 10.0 5.0 0.0

Exhibit 4: Top-line declined by 5.0% yoy

16,000 14,000 12,000 10,000 10,594 13,397 12,162 10,641 10,663 10,495 10,106 15 10 5

(mn tonnes)

( ` cr)

1.5 1.0 0.5 0.0 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Sales volume (LHS) YoY Growth

(10.0) (15.0) (20.0) (25.0)

(%)

6,000 4,000 2,000 0 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Net revenue (LHS) yoy chg (RHS)

(5) (10) (15)

Source: Company, Angel Research

Source: Company, Angel Research

Higher staff costs and other expenses dent companys EBITDA

The staff costs for the company increased 15.2% yoy to `2,295cr and the other expenses increased by 5.0% yoy to `1,797cr. The EBITDA therefore decreased by 36.2% yoy to `967cr and EBITDA margin contracted by 467bp yoy to 9.6%.

Exhibit 5: Quarterly performance- Standalone

(`/tonne of saleable steel) Revenue Cost Raw-material cost Power and fuel Staff cost Other expenditure EBITDA EBITDA (US$/tonne)
Source: Company, Angel Research

1QFY14 38,573 34,174 15,483 3,074 8,759 6,858 3,692 64

1QFY13 42,563 37,667 17,342 5,514 7,970 6,842 6,061 114

yoy (%) (9.4) (9.3) (10.7) (44.2) 9.9 0.2 (39.1) (44.3)

4QFY13 38,008 34,231 17,668 2,331 7,729 6,502 2,856 53

qoq (%) 1.5 (0.2) (12.4) 31.9 13.3 5.5 29.3 20.4

August 16, 2013

(%)

2.0

(5.0)

8,000

SAIL | 1QFY2014 Result Update

Higher interest expenses drag bottom-line further

The company reported a net interest expense of `63cr in 1QFY2014 compared to a net interest income of `82cr in 1QFY2013. The tax expenses however, decreased by 77.7% yoy to `70cr due to MAT credit benefits in the quarter. Nevertheless, the adjusted net profit excluding forex loss of `88cr declined by 43.5% yoy to `539cr (above our estimate of `486cr).

Exhibit 6: EBITDA margin stood at 9.6%

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 EBITDA (LHS) EBITDA margin (RHS) 14.9 14.0 14.2 10.4 10.8 7.5 9.6 16.0 14.0 12.0 10.0

Exhibit 7: Adj. PAT stood at `539cr

1,200 1,000 800 1,098 852 953 20 10 0 (10) 501 430

( ` cr)

(%)

6.0 4.0 2.0 0.0

400 200 0

(30) (40) (50) (60)

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Adj. PAT (LHS) yoy chg (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

August 16, 2013

(%)

8.0

( ` cr)

600

515

539

(20)

SAIL | 1QFY2014 Result Update

Investment rationale
Slow progress on capacity continues
SAIL is increasing its saleable steel production capacity from 12.4mn tonne to 20.2mn tonne by FY2015 at a capex of `70,000cr. We expect strong profitability from these plants, with captive iron ore backing the upcoming steel expansion. Also, we expect SAIL's older loss-making plants to be modernized as part of its modernization program. However, the company has reported delays in its expansion projects over the last few quarters. Going forward, we do not rule out further delays and cost over-runs in its expansion plans.

Sales volumes continue to disappoint

SAIL reported disappointing sales volumes for FY2013 in the midst of lower steel demand. Lower-than-expected volumes reflect lower demand in India as well as lack of focus on marketing by SAIL, in our view. Given the slowdown in steel demand in India, and rising imports from FTA countries (which attract lower import duty), we remain skeptical over SAILs sales volume growth during FY2014.

Outlook and valuation

We expect SAILs operational and financial performance to be impacted by 1) inability to maintain/raise sales volumes amidst slower demand growth; 2) higher employee costs, and 3) delays/cost overruns in its brownfield expansion projects. SAIL is on the verge of expanding its saleable steel production capacity from 12.4mn tonne to 20.2mn tonne by FY2015. However, the current rich valuation of 4.7x FY2015E EV/EBITDA discounts its anticipated volume growth over FY2013FY2016. Hence, we recommend a Neutral rating on the stock.

Exhibit 8: EPS Angel forecast vs Consensus

Year (%)
FY14E FY15E
Source: Bloomberg, Angel Research

Angel forecast
5.3 6.8

Bloomberg consensus 6.2 7.5

Variation (%)
(14.6) (9.0)

Exhibit 9: Recommendation summary

Company SAIL Tata Steel JSW Steel CMP Target Price (`) 44 250 534 (`) 313 Neutral Buy Neutral Reco. Mcap Upside (` cr) 18,007 24,260 12,911 25 P/E (x) 8.3 6.5 8.5 6.5 4.8 7.1 P/BV (x) 0.4 0.6 0.7 0.4 0.6 0.7 EV/EBITDA (x) 6.3 4.6 5.1 4.7 4.1 4.7 RoE (%) 5.2 10.4 8.5 6.5 12.9 9.6 RoCE (%) 4.7 9.1 8.5 6.6 10.6 9.0 (%) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E

Source: Company, Angel Research

August 16, 2013

SAIL | 1QFY2014 Result Update

Company background
Incorporated in 1973, SAIL is one of the leading steel-making companies in India with an annual saleable steel production capacity of 12.4mn tonne. Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur and Salem. The companys steel plants are fully backed by captive iron ore mines. SAIL has a Navratna status; thus, it enjoys significant operational and financial autonomy. During February 2011, SAIL received clearances for Chiria iron ore mines, which have proven reserves of 1.8bn tonne.

August 16, 2013

SAIL | 1QFY2014 Result Update

Profit & loss statement- Consolidated

Y/E March (` cr) Gross sales Less: Excise duty Net sales Other operating income Total operating income % chg Total expenditure Net raw materials Other mfg costs Personnel Other EBITDA % chg (% of net sales) Depreciation EBIT % chg (% of net sales) Interest charges Other income (% of PBT) Share in profit of asso. Recurring PBT % chg Extra. Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Earnings of asso. Less: Minority interest Extra. Expense/(Inc.) Net income (reported) Adj. net income % chg (% of net sales) Basic EPS (`) Fully diluted EPS (`) % chg FY2010 44,002 3,425 40,551 40,551 (7.2) 31,157 18,601 6,305 5,527 3,619 9,395 10.1 23.2 1,430 7,965 9.9 19.6 474 2,782 27.1 10,273 9.3 10,299 3,448 33.5 6,851 6,851 6,851 10.9 16.9 FY2011 47,103 4,353 42,750 590 43,339 6.9 35,742 18,686 3,720 7,678 5,657 7,598 (19.1) 17.8 1,488 6,109 (23.3) 14.3 475 1,481 20.8 7,115 (30.7) 125 7,240 2,302 31.8 4,938 4,938 4,812 (29.8) 11.3 FY2012 50,361 4,696 45,665 688 46,353 7.0 40,267 21,662 4,470 7,936 6,199 6,086 (19.9) 13.3 1,567 4,518 (26.0) 9.9 678 1,576 29.1 5,416 (23.9) (262) 5,154 1,609 31.2 3,545 3,545 3,807 (20.9) 8.3 FY2013 49,457 5,307 44,060 837 44,898 (3.1) 39,997 18,997 4,830 8,848 7,322 4,901 (19.5) 11.1 1,405 3,496 (22.6) 7.9 748 937 25.4 3,685 (32.0) (229.3) 3,255 1,075 33.0 2,181 2,181 2,410 (36.7) 5.5 FY2014E 59,804 5,576 54,227 568 54,795 22.0 49,833 26,314 9,056 9,202 5,260 4,962 1.3 9.2 1,896 3,066 (12.3) 5.7 1,010 677 24.8 2,734 (25.8) 2,734 547 20.0 2,187 2,187 2,187 (9.3) 4.0 FY2015E 70,071 6,534 63,538 586 64,124 17.0 57,213 30,869 10,611 9,570 6,163 6,910 39.3 10.9 2,465 4,445 45.0 7.0 1,434 494 14.1 3,505 28.2 3,505 701 20.0 2,804 2,804 2,804 28.2 4.4

16.6 16.6
10.9

12.0 12.0
(27.9)

8.6 8.6
(28.2)

5.3 5.3
(38.5)

5.3 5.3
0.3

6.8 6.8
28.2

August 16, 2013

SAIL | 1QFY2014 Result Update

Balance sheet Consolidated

Y/E March SOURCES OF FUNDS Equity Share Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Other Long term liabilities Long Term Provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long Term loans and ad. Other non- current assets Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 37,419 22,310 15,109 15,309 45 40,035 22,719 3,736 13,580 17,686 22,350 52,812 38,077 23,018 15,059 22,075 684 1,692 30 36,544 17,480 1,246 17,817 14,178 22,365 61,905 41,728 24,601 17,127 28,049 685 2,003 41 28,431 6,416 1,386 20,630 14,181 14,250 62,156 53,728 26,006 27,723 24,549 685 2,003 270 31,450 9,419 1,386 20,645 18,079 13,370 68,601 66,728 27,902 38,826 17,049 685 2,003 270 33,167 10,037 1,386 21,745 19,679 13,488 72,322 80,228 30,367 49,861 6,549 685 2,003 270 32,394 5,875 1,386 25,133 20,602 11,792 71,161 4,130 29,613 33,743 1 17,638 1,430 52,812 4,130 32,939 37,069 19,056 1,491 1,097 3,192 61,905 4,130 35,681 39,811 16,097 1,644 1,090 3,513 62,156 4,130 37,125 41,256 21,097 1,644 1,090 3,513 68,601 4,130 38,347 42,477 23,597 1,644 1,090 3,513 72,322 4,130 40,185 44,316 20,597 1,644 1,090 3,513 71,161 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

August 16, 2013

SAIL | 1QFY2014 Result Update

Cash flow statement Consolidated

Y/E March (` cr) Profit before tax Depreciation Change in working capital Less: Other income Direct taxes paid Cash flow from operations (Inc.)/ Dec. in net fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans and adv. Other income Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal. FY2010 10,299 1,426 1,427 (4,435) 3,619 5,097 1.5 (2,112.9) (8,257) 45 8,886 1,402 169.4 7,359 4,199 18,522 22,721 FY2011 7,194 1,483 (3,263) (1,043) 2,215 2,157 (9) (1,697) 8,933 3,641 1,395 429 1,818 22,439 17,480 FY2012 FY2013E FY2014E FY2015E 5,151 1,574 (3,086) (656) 1,456 1,170 (9,487) 5 (1,948) (7,535) 159 (3,086) 1,152 620 4,699 17,480 6,416 3,255 1,405 3,883 1,075 7,469 (8,500) (8,500) 5,000 965 4,035 3,003 6,416 9,419 2,734 1,896 500 547 4,583 (5,500) (5,500) 2,500 965 1,535 618 9,419 10,037 3,505 2,465 (2,465) 701 2,804 (3,000) (3,000) (3,000) 965 (3,965) (4,161) 10,037 5,876

(10,371) (10,621)

12,908 (11,064)

August 16, 2013

SAIL | 1QFY2014 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book value DuPont analysis EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Post-tax) Cost of debt (post tax) Leverage (x) Operating RoE Returns (%) RoCE (Pre-tax) Angel RoIC (pre-tax) RoE Turnover ratios (x) Asset turnover (gross block) Inventory (days) Receivables (days) Payables (days) WC cycle (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest coverage (0.2) (0.5) 16.8 0.0 0.1 12.9 0.2 1.5 6.7 0.3 2.2 4.7 0.3 2.6 3.0 0.3 2.0 3.1 1.2 180 33 122 70 1.1 225 36 119 69 1.2 194 33 103 77 0.9 270 37 98 95 0.9 200 35 93 89 0.9 200 35 90 81 17.8 60.9 22.2 11.1 38.0 13.9 7.8 22.7 9.2 5.8 13.5 5.4 4.7 8.8 5.2 6.6 9.5 6.5 19.6 66.5 1.7 22.1 22.1 14.3 68.2 1.2 12.2 1.7 0.0 12.4 9.9 68.8 1.0 7.0 2.9 0.2 7.9 7.9 67.0 0.9 4.6 2.4 0.3 5.2 5.7 80.0 1.0 4.5 3.4 0.3 4.8 7.0 80.0 1.1 6.1 5.6 0.3 6.3 16.6 16.6 20.0 3.3 81.7 11.7 11.7 15.6 2.6 89.7 9.2 9.2 12.4 1.0 96.4 5.8 5.8 8.7 2.0 99.9 5.3 5.3 9.9 2.0 102.8 6.8 6.8 12.8 2.0 107.3 2.7 2.2 0.5 7.5 0.3 1.4 0.2 3.8 2.8 0.5 5.9 0.4 2.5 0.3 4.8 3.6 0.5 2.3 0.6 4.5 0.4 7.5 5.1 0.4 4.5 0.7 6.0 0.4 8.3 4.5 0.4 4.5 0.6 6.3 0.4 6.5 3.4 0.4 4.5 0.5 4.7 0.5 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

August 16, 2013

10

SAIL | 1QFY2014 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

SAIL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 16, 2013

11