Global Focus List. Emerging Markets. China Colombia Czech Republic. Greece. Hungary. Egypt. Philippines

Transcript

1 Global Focus ist merging Markets Brazil Chile China Colombia Czech Republic gypt Greece Hungary India Indonesia Republic of Korea Malaysia Mexico Pakistan Peru Philippines Poland Qatar Russia South frica Taiwan Thailand Turkey United rab mirates

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3 Global Focus ist merging Markets

4 Global Focus ist merging Markets

5 O'I QUITY RSRCH MTHODOOGY 70,000 quities in Coverage Universe 70 Countries 40 Research nalysts 10 Ideas On verage Per Week General Market nalysis Quantitative nalysis Profile nalysis Fundamental nalysis Technical nalysis Committee of O eil Research Research nalysts examine a company s financial results, Research nalysts focus on company s historical stock nalysts classify 70 major variety of proprietary proprietary ratings and rankings growth catalysts that provide a price is evaluated against market indices into 4 states quantitative Ratings and are compared against a company a competitive edge cataloged price pattern profiles using a proprietary approach Rankings to monitor existing proprietary Model Book and superior product/service. in a proprietary Model Book based on quantitative, technical, and qualitative observation: and potential recommendations. database with profiles of over +1,000 Great Winning Stocks since Financial Statement nalysis, Industry and Company reports, ews Releases, and Conference database. Buy/Sell entry points are determined based on closeness Confirmed Uptrend Calls are utilized to gauge of fit. growth catalysts. Uptrend Under Pressure Downtrend Rally ttempt in Downtrend -2- Refer to the end of the report for important disclosures

6 TB OF COTTS Weekly Updates and Market Information Performance Summary... 4 Indices Summary... 5 Trading Setups Market Summaries Weekly Updates Page Indexes eaders by Company ame Index eaders by Sector Index eaders by Country Index eaders by Market Cap (USD) Index Page Performance Summaries Focus ist llocations Top Performers This Week Top Performers Since dded Page International Mark ups and Weekly Charts (Organized By Sector) Financial Consumer Cyclical Technology Capital quipment Basic Material Consumer Staple Retail nergy Utility Health Care Transportation Page Cumulative Positions Cumulative Positions Page -3-

7 PRFORMC SUMMRY GF merging Markets Performance vs. Benchmark s of 02/01/ % % % % % % % % % % % 50.00% 0.00% 50.00% % GF merging Markets YTD Performance +1.04% Ishares MSCI merging Markets Index Fund YTD Performance +6.83% -4-

8 MRGIG MRKTS IDICS SUMMRY merging Markets Condition 2/2/ /26/ /19/ /12/ % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% COFIRMD UPTRD UPTRD UDR PRSSUR DOWTRD RY TTMPT Country % Since Follow Through Weeks Since Follow Through Distribution Days Country % Off High Weeks Since Follow Through Distribution Days Country % Off High Weeks Since Downtrend Country % Off ow Weeks Since Downtrend Taiwan 33% 88 2 Brazil 31% 29 2 Peru 31% 38 2 India 26% 53 2 Czech Republic 26% 68 2 Philippines 25% 56 5 Indonesia 20% 46 2 Thailand 18% 57 4 gypt 16% 46 2 Greece 15% 7 3 Russia 11% 19 3 Colombia 10% 22 2 Turkey 8% 13 6 Malaysia 6% 7 2 Chile 6% 5 1 South Korea 3% 16 1 Poland 0% 4 5 Hungary 1% 1 2 South frica 5% 27 4 China 10% 23 7 Mexico 7% 14-5-

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11 MRGIG MRKTS SUMMRIS sia (China, India, Indonesia) KY POITS 1. Mainland China s markets fell significantly over last week, led by the Shenzhen, which fell 6.6% compared with the 2.7% fall for the Shanghai. The market condition was changed to Uptrend Under Pressure this week because of the elevated number of distribution days and technical weakness. Three distribution days were added this week, taking the total to seven for the Shenzhen, while the Shanghai has four distribution days. The Shanghai is trading 3% above its 50-DM (~3,374), while the Shenzhen closed 5% below its 50-DM (~1,913). The 100-DM (~1,955) continues to act as a strong resistance level for the Shenzhen. 2. China s Manufacturing PMI fell to 51.3 in January, below market estimates of on-manufacturing PMI increased to 55.3 in January, from 55.0 the previous month, beating market consensus of China s Caixin Manufacturing PMI stood at 51.5 in January, in line with market expectations. 4. fter eight consecutive weeks of gains, India s BS Sensex fell significantly this week amid the Union Budget for FY The index fell 2.73% over last week to 35, It is trading 3% above its 50-DM and 9% above its 200-DM. The market continues to be in a Confirmed Uptrend. The index has two distribution days in the last five weeks. 5. India s infrastructure output increased 4% y/y in December. 6. India s Manufacturing PMI fell to 52.4 in January, below market estimates of Indonesia s Jakarta S Composite Index fell 0.48% over last week to 6, It is trading 4% above its 10-WM and 10% above its 40-WM. The index continues to be in a Confirmed Uptrend. One new distribution day was added this week. 8. Indonesia s core CPI increased 2.69% y/y in January and CPI increased 0.62% in January compared with the previous month. Stocks of Interest Jubilant ife Sciences (VOC.I; JUBIT:I) $2.3B market cap Jubilant ife Sciences offers contract pharmaceutical manufacturing, life science ingredients, and drug discovery solutions. The Company is the global leader for Pyridines, which is mostly used in manufacturing agro chemicals. The global crop protection chemicals market is projected to reach $70B by 2021, growing at a 5% CGR from 2016 to Jubilant is also the world s second largest producer of vitamin B3. In Q3 FY 2018, the Company s revenues and PS grew 42% and 78%, y/y, respectively. The stock remains buyable. United Tractors (UTR.ID; UTR:IJ) $10.8B market cap United Tractors (UT) is the leading and the largest heavy equipment distributor with an exclusive right to distribute Komatsu products in Indonesia. s of September 2017, it saw a 64% y/y surge in revenues from the construction machinery segment, primarily driven by a 73% y/y expansion in Komatsu sales volume. The global heavy construction equipment market is expected to reach $90.4B by 2025, and is likely to register a CGR of 5.4% from 2017 to UT plans to expand into the Mining sector by commencing gold production by The stock remains buyable. Important Dates February 4 China Services PMI February 5 Indonesia Q4 GDP February 7 India Interest Rate Decision February 8 China CPI and trade balance -8-

12 MRGIG MRKTS SUMMRIS sia (Malaysia, Philippines, South Korea, Taiwan, Thailand) KY POITS 1. The Malaysia KCI Composite Index surged 0.89% this week to MYR 1, The index remains in a Confirmed Uptrend, trading 5.08% above its 50-DM and 5.86% above its 200-DM. 2. The Philippines Stock xchange plunged 2.55% this week to settle at PHP 8, It added two distribution days this week, increasing the count to five. The index remains in a Confirmed Uptrend, trading 2.83% above its 50-DM and 8.12% above its 200-DM. 3. South Korea s Kospi fell 1.92% this week to KRW 2, It is trading 0.98% above its 50-DM and 5.01% above its 200-DM. The index remains in a Confirmed Uptrend. 4. South Korea s industrial production sank 6.0% y/y in December 2017, far worse than consensus of 2.0% fall, and much below ovember s 1.6% y/y fall. 5. South Korea s CPI increased 1.0% y/y in January, below street estimates of 1.3%, decelerating from December 2017 s 1.5% rise. Inflation slowed to a 17-month low as a slight dip in food prices dragged on the headline CPI. 6. In January, South Korea s exports expanded 22.2% y/y, while its imports grew 20.9% y/y, reducing trade surplus to $3.70B, from $5.54B in December The Taiwan xchange declined 0.19% this week to settle at TWD 11, It added one distribution day this week, increasing the total count to two. The index remains in a Confirmed Uptrend, trading 3.37% above its 50-DM and 6.15% above its 200-DM. 8. Taiwan s GDP surged 3.28% y/y in Q4 2017, faster than 3.10% growth in Q and above consensus of 2.5%. 9. The Thailand Bangkok ST grew 0.04% this week and reached THB 1, It added two distribution days this week, increasing the count to four. The index remains in a Confirmed Uptrend, trading 3.77% above its 50-DM and 10.88% above its 200-DM. 10. Thailand s industrial production increased 2.35% y/y in December 2017, below street estimates of 3.50% and much lower than ovember s revised 4.14% y/y growth. 11. Thailand s headline CPI grew 0.68% y/y in January, following December 2017 s 0.78% increase. The headline CPI growth was below consensus of 0.80%. The core CPI, which excludes raw food and energy prices, grew 0.58% y/y in January, also below street estimates of 0.65%. Stocks of Interest BCPG Pcl (BCPG.TH; BCPG:TB) $1.6B market cap BCPG Pcl is one of the largest solar power generators in Thailand, operating solar power portfolios in Thailand (182 MW) and Japan (236 MW). BCPG aims to attain 1 GW of renewable energy by In Q3 2017, operating revenues and net profit increased 9% and 43%, y/y, respectively. Revenue growth was primarily driven by the commencement of solar power plants in Thailand and Japan. The Company s profit after adjusting for foreign exchange impact grew 82% y/y in Q ccording to the Power Development Plan of 2015, Thailand s electricity demand is estimated to increase 2.6% per year from 2015 to lectricity demand is expected to continue to rise from 27,633 MW in 2014 to 49,655 MW in It has strong O eil Ratings, including an RS Rating of 95 and an Up/Down volume ratio of 1.8. The stock remains buyable. Muangthai easing (MUTH.TH; MTS:TB) $2.9B market cap Muangthai easing (MUTH) is one of the leading lending companies in Thailand. Growth is driven by a huge potential from the underpenetrated nanofinance market and new branch openings. The Company observed a robust loan increase of 58% y/y and 10% q/q in Q3 2017, with the primary loan growth driver being new products such as cars and agricultural land products. sset quality remains strong, as P came in at 1.17% in Q (versus 1.18% in Q and 1.09% in Q1 2017). In July 2017, the Bank of Thailand tightened its credit policies by lowering credit lines for credit cards and personal loans to not more than 1.5x monthly salaries (from 5x currently) for income earners of less than THB 30,000 per month. This regulatory change will be a tailwind for loan growth as it will force the salaried class to seek additional sources of funds to support their personal consumption. The stock has strong O eil Ratings, with an PS Rank of 99, an RS Rating of 88, and a Datagraph Rating of 87. It remains buyable. Important Dates February 5 The Philippines CPI February 6 Taiwan CPI Malaysia trade balance February 7 Taiwan trade balance February 8 The Philippines interest rate decision and trade balance Malaysia industrial production -9-

13 MRGIG MRKTS SUMMRIS M (gypt, Israel, Turkey, South frica, United rab mirates) KY POITS 1. The GX 30 Index was up 0.31% to 15, points on Thursday, and closed with a loss of 0.54% this week. 2. The IMF expects gypt s economic growth to hit about 5% in In addition, officials expect gypt s budget deficit to go down and current account balance figures to improve in Israel s Tel viv 125 Index was down 0.36% to 1, points on Thursday. The index closed down 0.03% for the week. 4. Israel s government debt fell to 59.4% of the GDP, marking the first instance where Israel reached the benchmark of the U s Maastricht Treaty. 5. Turkey s ational 100 Index was down 0.66% to reach 118, points on Thursday. ccording to the Turkish Statistical Institute, Turkey s exports in 2017 amounted to more than $157.05B (+10.2%y/y). Meanwhile, Turkish imports climbed 17.7% to $233.79B, amounting to a foreign trade deficit of $76.73B. 6. fter having a good run last week, the JS ll Share Index corrected heavily this week and registered its third and fourth distribution day on Monday and Tuesday, respectively. It ended the week with a loss of 3.79%. 7. South frica s CPI increased 4.7% in 2017 (within the Governments target of 3-6%). arlier, the Department of abor in South frica increased the minimum wage for farm and forestry workers to ZR per month. 8. The U market ended the week on a positive note. The bu Dhabi Securities xchange Index was up 0.22% to 4, The Real state sector gained 0.71%, while the Industrial sector underperformed with a loss of 0.72%. Stocks of Interest Intentionally left blank Important Dates February 5 Turkey CPI February 6 South frica business confidence February 7 Israel FX reserve -10-

14 MRGIG MRKTS SUMMRIS mericas (Brazil, Mexico) KY POITS 1. Brazilian equities had a slight pullback after rallying for six consecutive weeks, down 0.04% through Thursday. Shares of heavyweights Petrobras (PBR) and financial institutions like Bradesco (BBD) and Itau (ITUB) continue to lead gains in the Bovespa Index, which is at all-time highs. Brazil s market is in a Confirmed Uptrend. 2. Brazil s unemployment rate ended 2017 at a 14-month low. The unemployment rate fell 0.6% in the fourth quarter to 11.8%, according to government statistics. That was slightly below the 11.9% median estimate from economists. 3. Brazil s Finance Minister Henrique Meirelles stated that the recovery of the Brazilian economy is well on track, and that he will decide in pril whether to run for president in the October general election. 4. The reform of Brazil s social security system still does not have enough support for Congressional approval, according to the cabinet minister in charge of political affairs. 5. Mexican equities pulled back this week, down 0.93% through Thursday. Mexico s IPC35 benchmark is attempting to rally. The benchmark is already above the key 50,000 level and its 200-DM. We are now waiting for a follow-through day to upgrade Mexico to a Confirmed Uptrend. 6. Mexico s economy rebounded in the fourth quarter of 2017, according to preliminary data. GDP expanded around 1.0% in seasonally adjusted terms in the October December period, compared with the previous quarter. conomists had forecast an expansion of 0.6%. In Q3 2017, the economy shrank 0.3% as the country recovered from two devastating earthquakes. ooking forward, rising interest rates, persistent inflation, upcoming elections, and uncertainty regarding the renegotiation of FT could weigh on economic activity and consumer sentiment. 7. Mexico s conomy Minister stated this week that negotiators from the U.S., Canada, and Mexico have made enough progress in the talks to revamp FT to be able to conclude the negotiations soon. Stocks of Interest Banco del Bajio (BJI.MX; BBJIOO:MM) $2.4 B market cap BanBajio is the eighth largest bank in Mexico by loans and deposits and ranked seventh by business loans. The bank is located in the Bajio, one of Mexico s fastest growing regions, ~ 5.5% real GDP growth over the past five years, versus ~2.8% for the country. The Company has a leading 22% market share in this region in terms of commercial loans, and is growing faster than the overall industry, while maintaining low delinquency rates. The Company s strategy of funding at a low cost, combined with the trend of rising interest rates, should allow the bank to expand margins in BanBajio shares are breaking out of a 24-week IPO base after reporting betterthan-expected Q results. We recommend that investors accumulate the stock at current levels. The stock s RS line is trending higher and its RS Rating currently stands at 92. The stock has a strong PS Rank of 98, and consensus estimates have PS growing 11% in dditionally, Mexico s IPC35 benchmark is attempting to rally. Important Dates Intentionally left blank -11-

15 GOB FOCUS IST WKY UPDTS dditions Page Symbol ame Date O'eil Sector O'eil Industry Group Reason This section intentionally left blank. Deletions Page Symbol ame Date O'eil Sector O'eil Industry Group Reason IDI 2 Stocks 94 BH.I Bharat lectronics 02/01/18 Capital quipment erospace/defense The Company s PBT and PT declined 13.7% and 18.9%, y/y, to IR 4.35B and IR 3.03B, respectively, due to a significant increase in employee payroll costs and higher tax incidence. The Indian government s FY 2019 budget defense allocation was another factor in the stock s sharp decline. The stock declined 9% in the last two trading sessions following weak Q3 FY 2018 numbers. The stock breached its 200 DM on more than 3x average volume. 90 VKS.I Vakrangee 01/30/18 Technology Computer Tech Services Vakrangee was investigated by the Securities and xchange Board of India (SBI) for alleged share price and volume manipulation of its own stock at the Bombay Stock xchange and the ational Stock xchange. It is believed that directors of Vakrangee and various client companies were at the center of the manipulation. The stock sold off on 2x average daily volume, falling over ~17% intraday before bouncing off its 50 DM and closing down ~7%. -12-

16 DRS BY COMPY M Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD 88 CC.TW ccton Technology TIW TI Technology Computer etworking 2,169 27, IG.TW irtac International Gp. TIW TI Capital quipment Machinery Gen Industrial 3,104 17, RZ.BR rezzo Industria On BRZI BSP Consumer Cyclical pparel Shoes & Rel Mfg 1,648 5, SM.TW smedia Technology TIW TI Technology lec Semiconductor Mfg 715 5, S.I venue Supermarts IDI S Retail Retail Super/Mini Mkts 11,057 10, Z.BR zul Pn BRZI BSP Transportation Transportation irline 3,182 9, B.ID Bank egara Indonesia IDOSI IDX Financial Banks Money Center 12,764 15, BT.ID Bank Tabungan egara IDOSI IDX Financial Banks Money Center 2,860 7, BCPG.TH Bcpg THID BKK nergy nergy lternative/other 1,635 24, BH.I Bharat lectronics IDI S Capital quipment erospace/defense 5,823 11, BMI.TR Bim Birlesik Magazalar TURKY IST Retail Retail Discount&Variety 5,968 16, BJI.MX Bnc.Del Bajio Idbc. Mtpl. MXICO MX Financial Banks Money Center 2,542 3, BRI.I Britannia Inds. IDI S Consumer Staple Food Grain & Related 8,857 14, CP.TH Central Pattana THID BKK Financial Real state Dvlpmt/Ops 11,799 16, CS.I Cesc IDI S Utility Utility lectric Power 2,069 7, CM.TW Chroma te TIW TI Capital quipment lectrical Power/quipmt 2,452 17, CSJ.Z Clicks Group SOUTH FRIC JS Retail Retail Drug Stores 3,358 11, CVC.BR Cvc Bra.Opd. cdv. On BRZI BSP Consumer Cyclical eisure Travel Booking 2,483 13, DI.I Dalmia Bharat IDI S Basic Material Bldg Cement/Concrt/g 3,929 5, DWH.I Dewan Housing Finance IDI S Financial Finance Consumer oans 2,543 24, P.TH nergy bsolute THID BKK nergy nergy lternative/other 7,726 39, GRU.I Gruh Finance IDI S Financial Finance Consumer oans 3,241 4, HFC.I Hdfc Bank IDI S Financial Banks Money Center 78,811 46, IGU.BR Iguatemi mpresa Shopping Centers On BRZI BSP Financial Real state Dvlpmt/Ops 2,359 15, IZ.I Indiabulls Housing Fin IDI S Financial Finance Consumer oans 8,785 35, IBK.I Indusind Bank IDI S Financial Banks Money Center 16,493 36, IHP.BR Instituto Hermes Pardini On BRZI BSP Health Care Medical Services 1,253 3, IS.CO Interconexion lectrica COOMBI BOG Utility Utility lectric Power 5,640 1, JVS.I Jsw Steel IDI S Basic Material Steel Producers 14,848 17, VOC.I Jubilant ife Scis. IDI S Health Care Medical Diversified 2,188 11, FH.I &T Finance Holdings IDI S Financial Financial Svcs Specialty 4,581 14, IX.BR inx On BRZI BSP Technology Comp Sftwr Spec nterprs 1,078 4,

17 DRS BY COMPY M Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD Z 72 OC.BR ocaliza Rent Car On BRZI BSP Consumer Cyclical eisure Services 5,276 20, YBM.KR oen ntertainment SOUTH KOR KRX Consumer Cyclical eisure Movies & Related 2,459 4, MDB.BR M Dias Branco Industria On BRZI BSP Consumer Staple Food Grain & Related 6,066 8, MUD.I Maruti Suzuki India IDI S Consumer Cyclical uto Manufacturers 42,390 84, MSY.I Motherson Sumi Sys. IDI S Consumer Cyclical uto/truck Original qp 11,568 16, MUTH.TH Muangthai easing THID BKK Financial Finance Consumer oans 2,821 10, MYG.MY My g Services MYSI KS Technology Computer Sftwr Desktop 2,282 6, PI1.I Page Industries IDI S Consumer Cyclical pparel Clothing Mfg 3,491 5, PD.TW Parade Technologies TIW XTO Technology lec Semiconductor Mfg 1,582 17, T.I Petronet G IDI S nergy Oil&Gas Refining/Mktg 5,696 18, PGC.I Power Grid Corp.Of India IDI S Utility Utility lectric Power 15,751 20, PMT.MY Press Metal luminium Holdings MYSI KS Capital quipment Metal Proc & Fabrication 5,763 14, QR.MY Ql Resources MYSI KS Consumer Staple Food Meat Products 2, DR3.BR Raia Drogasil On BRZI BSP Retail Retail Drug Stores 8,481 29, RB2.I RB Bank IDI S Financial Banks Money Center 3,142 6, STX.MY Scientex MYSI KS Capital quipment Containers/Packaging 1, SQB.C Sociedad Quimica Y Minera De Chile B PreCHI SGO Basic Material Chemicals gricultural 14,617 17, SWP.TH Srisawad Corporation THID BKK Financial Finance Consumer oans 2,157 16, SMF.I Sundram Fasteners IDI S Consumer Cyclical uto/truck Original qp 1,684 1, TSM.TW Taiwan Semicon.Mnfg. TIW TI Technology lec Semiconductor Mfg 230, , T.I Tata Global Beverages IDI S Consumer Staple Beverages on lcoholic 2,708 20, TIDO.MY Time Dotcom MYSI KS Technology Telecom Svcs Integrated 1,307 2, TO.TR Tofas Turk Otom.Fabk. TURKY IST Consumer Cyclical uto Manufacturers 4,192 5, TCPJ.Z Transaction Capital SOUTH FRIC JS Financial Finance Consumer oans 838 1, UTR.ID United Tractors IDOSI IDX Capital quipment Machinery Constr/Mining 10,870 11, VKS.I Vakrangee IDI S Technology Computer Tech Services 4,341 27, VD.I Vedanta IDI S Basic Material Mining Metal Ores 35,101 50, WI.TW Winbond ltn. TIW TI Technology lec Semiconductor Mfg 3,186 42, WORK.TH Workpoint ntertainment THID BKK Consumer Cyclical eisure Movies & Related 1,161 8,

18 DRS BY SCTOR Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD FICI 15 Stocks 26 HFC.I Hdfc Bank IDI S Financial Banks Money Center 78,811 46, IBK.I Indusind Bank IDI S Financial Banks Money Center 16,493 36, B.ID Bank egara Indonesia IDOSI IDX Financial Banks Money Center 12,764 15, RB2.I RB Bank IDI S Financial Banks Money Center 3,142 6, BT.ID Bank Tabungan egara IDOSI IDX Financial Banks Money Center 2,860 7, BJI.MX Bnc.Del Bajio Idbc. Mtpl. MXICO MX Financial Banks Money Center 2,542 3, IZ.I Indiabulls Housing Fin IDI S Financial Finance Consumer oans 8,785 35, GRU.I Gruh Finance IDI S Financial Finance Consumer oans 3,241 4, MUTH.TH Muangthai easing THID BKK Financial Finance Consumer oans 2,821 10, DWH.I Dewan Housing Finance IDI S Financial Finance Consumer oans 2,543 24, SWP.TH Srisawad Corporation THID BKK Financial Finance Consumer oans 2,157 16, TCPJ.Z Transaction Capital SOUTH FRIC JS Financial Finance Consumer oans 838 1, CP.TH Central Pattana THID BKK Financial Real state Dvlpmt/Ops 11,799 16, IGU.BR Iguatemi mpresa Shopping Centers On BRZI BSP Financial Real state Dvlpmt/Ops 2,359 15, FH.I &T Finance Holdings IDI S Financial Financial Svcs Specialty 4,581 14,679 COSUMR CYCIC 10 Stocks 56 MUD.I Maruti Suzuki India IDI S Consumer Cyclical uto Manufacturers 42,390 84, TO.TR Tofas Turk Otom.Fabk. TURKY IST Consumer Cyclical uto Manufacturers 4,192 5, MSY.I Motherson Sumi Sys. IDI S Consumer Cyclical uto/truck Original qp 11,568 16, SMF.I Sundram Fasteners IDI S Consumer Cyclical uto/truck Original qp 1,684 1, YBM.KR oen ntertainment SOUTH KOR KRX Consumer Cyclical eisure Movies & Related 2,459 4, WORK.TH Workpoint ntertainment THID BKK Consumer Cyclical eisure Movies & Related 1,161 8, PI1.I Page Industries IDI S Consumer Cyclical pparel Clothing Mfg 3,491 5, RZ.BR rezzo Industria On BRZI BSP Consumer Cyclical pparel Shoes & Rel Mfg 1,648 5, OC.BR ocaliza Rent Car On BRZI BSP Consumer Cyclical eisure Services 5,276 20, CVC.BR Cvc Bra.Opd. cdv. On BRZI BSP Consumer Cyclical eisure Travel Booking 2,483 13,606 TCHOOGY 9 Stocks 76 TSM.TW Taiwan Semicon.Mnfg. TIW TI Technology lec Semiconductor Mfg 230, , WI.TW Winbond ltn. TIW TI Technology lec Semiconductor Mfg 3,186 42, PD.TW Parade Technologies TIW XTO Technology lec Semiconductor Mfg 1,582 17,

19 DRS BY SCTOR Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD 82 SM.TW smedia Technology TIW TI Technology lec Semiconductor Mfg 715 5, IX.BR inx On BRZI BSP Technology Comp Sftwr Spec nterprs 1,078 4, MYG.MY My g Services MYSI KS Technology Computer Sftwr Desktop 2,282 6, CC.TW ccton Technology TIW TI Technology Computer etworking 2,169 27, VKS.I Vakrangee IDI S Technology Computer Tech Services 4,341 27, TIDO.MY Time Dotcom MYSI KS Technology Telecom Svcs Integrated 1,307 2,308 CPIT QUIPMT 6 Stocks 94 BH.I Bharat lectronics IDI S Capital quipment erospace/defense 5,823 11, STX.MY Scientex MYSI KS Capital quipment Containers/Packaging 1, CM.TW Chroma te TIW TI Capital quipment lectrical Power/quipmt 2,452 17, UTR.ID United Tractors IDOSI IDX Capital quipment Machinery Constr/Mining 10,870 11, IG.TW irtac International Gp. TIW TI Capital quipment Machinery Gen Industrial 3,104 17, PMT.MY Press Metal luminium Holdings MYSI KS Capital quipment Metal Proc & Fabrication 5,763 14,970 BSIC MTRI 4 Stocks 106 DI.I Dalmia Bharat IDI S Basic Material Bldg Cement/Concrt/g 3,929 5, SQB.C Sociedad Quimica Y Minera De Chile B PreCHI SGO Basic Material Chemicals gricultural 14,617 17, VD.I Vedanta IDI S Basic Material Mining Metal Ores 35,101 50, JVS.I Jsw Steel IDI S Basic Material Steel Producers 14,848 17,201 COSUMR STP 4 Stocks 114 BRI.I Britannia Inds. IDI S Consumer Staple Food Grain & Related 8,857 14, MDB.BR M Dias Branco Industria On BRZI BSP Consumer Staple Food Grain & Related 6,066 8, T.I Tata Global Beverages IDI S Consumer Staple Beverages on lcoholic 2,708 20, QR.MY Ql Resources MYSI KS Consumer Staple Food Meat Products 2, RTI 4 Stocks 122 DR3.BR Raia Drogasil On BRZI BSP Retail Retail Drug Stores 8,481 29, CSJ.Z Clicks Group SOUTH FRIC JS Retail Retail Drug Stores 3,358 11, BMI.TR Bim Birlesik Magazalar TURKY IST Retail Retail Discount&Variety 5,968 16, S.I venue Supermarts IDI S Retail Retail Super/Mini Mkts 11,057 10,

20 DRS BY SCTOR Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD RGY 3 Stocks 130 P.TH nergy bsolute THID BKK nergy nergy lternative/other 7,726 39, BCPG.TH Bcpg THID BKK nergy nergy lternative/other 1,635 24, T.I Petronet G IDI S nergy Oil&Gas Refining/Mktg 5,696 18,659 UTIITY 3 Stocks 136 PGC.I Power Grid Corp.Of India IDI S Utility Utility lectric Power 15,751 20, IS.CO Interconexion lectrica COOMBI BOG Utility Utility lectric Power 5,640 1, CS.I Cesc IDI S Utility Utility lectric Power 2,069 7,898 HTH CR 2 Stocks 142 VOC.I Jubilant ife Scis. IDI S Health Care Medical Diversified 2,188 11, IHP.BR Instituto Hermes Pardini On BRZI BSP Health Care Medical Services 1,253 3,296 TRSPORTTIO 1 Stock 146 Z.BR zul Pn BRZI BSP Transportation Transportation irline 3,182 9,216 Sorted by O'eil Sector, O'eil Industry Group, Market Capitalization -17-

21 DRS BY COUTRY Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD IDI 23 Stocks 26 HFC.I Hdfc Bank IDI S Financial Banks Money Center 78,811 46, MUD.I Maruti Suzuki India IDI S Consumer Cyclical uto Manufacturers 42,390 84, VD.I Vedanta IDI S Basic Material Mining Metal Ores 35,101 50, IBK.I Indusind Bank IDI S Financial Banks Money Center 16,493 36, PGC.I Power Grid Corp.Of India IDI S Utility Utility lectric Power 15,751 20, JVS.I Jsw Steel IDI S Basic Material Steel Producers 14,848 17, MSY.I Motherson Sumi Sys. IDI S Consumer Cyclical uto/truck Original qp 11,568 16, S.I venue Supermarts IDI S Retail Retail Super/Mini Mkts 11,057 10, BRI.I Britannia Inds. IDI S Consumer Staple Food Grain & Related 8,857 14, IZ.I Indiabulls Housing Fin IDI S Financial Finance Consumer oans 8,785 35, BH.I Bharat lectronics IDI S Capital quipment erospace/defense 5,823 11, T.I Petronet G IDI S nergy Oil&Gas Refining/Mktg 5,696 18, FH.I &T Finance Holdings IDI S Financial Financial Svcs Specialty 4,581 14, VKS.I Vakrangee IDI S Technology Computer Tech Services 4,341 27, DI.I Dalmia Bharat IDI S Basic Material Bldg Cement/Concrt/g 3,929 5, PI1.I Page Industries IDI S Consumer Cyclical pparel Clothing Mfg 3,491 5, GRU.I Gruh Finance IDI S Financial Finance Consumer oans 3,241 4, RB2.I RB Bank IDI S Financial Banks Money Center 3,142 6, T.I Tata Global Beverages IDI S Consumer Staple Beverages on lcoholic 2,708 20, DWH.I Dewan Housing Finance IDI S Financial Finance Consumer oans 2,543 24, VOC.I Jubilant ife Scis. IDI S Health Care Medical Diversified 2,188 11, CS.I Cesc IDI S Utility Utility lectric Power 2,069 7, SMF.I Sundram Fasteners IDI S Consumer Cyclical uto/truck Original qp 1,684 1,676 BRZI 9 Stocks 122 DR3.BR Raia Drogasil On BRZI BSP Retail Retail Drug Stores 8,481 29, MDB.BR M Dias Branco Industria On BRZI BSP Consumer Staple Food Grain & Related 6,066 8, OC.BR ocaliza Rent Car On BRZI BSP Consumer Cyclical eisure Services 5,276 20, Z.BR zul Pn BRZI BSP Transportation Transportation irline 3,182 9, CVC.BR Cvc Bra.Opd. cdv. On BRZI BSP Consumer Cyclical eisure Travel Booking 2,483 13, IGU.BR Iguatemi mpresa Shopping Centers On BRZI BSP Financial Real state Dvlpmt/Ops 2,359 15, RZ.BR rezzo Industria On BRZI BSP Consumer Cyclical pparel Shoes & Rel Mfg 1,648 5,

22 DRS BY COUTRY Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD 144 IHP.BR Instituto Hermes Pardini On BRZI BSP Health Care Medical Services 1,253 3, IX.BR inx On BRZI BSP Technology Comp Sftwr Spec nterprs 1,078 4,422 TIW 7 Stocks 76 TSM.TW Taiwan Semicon.Mnfg. TIW TI Technology lec Semiconductor Mfg 230, , WI.TW Winbond ltn. TIW TI Technology lec Semiconductor Mfg 3,186 42, IG.TW irtac International Gp. TIW TI Capital quipment Machinery Gen Industrial 3,104 17, CM.TW Chroma te TIW TI Capital quipment lectrical Power/quipmt 2,452 17, CC.TW ccton Technology TIW TI Technology Computer etworking 2,169 27, PD.TW Parade Technologies TIW XTO Technology lec Semiconductor Mfg 1,582 17, SM.TW smedia Technology TIW TI Technology lec Semiconductor Mfg 715 5,893 THID 6 Stocks 50 CP.TH Central Pattana THID BKK Financial Real state Dvlpmt/Ops 11,799 16, P.TH nergy bsolute THID BKK nergy nergy lternative/other 7,726 39, MUTH.TH Muangthai easing THID BKK Financial Finance Consumer oans 2,821 10, SWP.TH Srisawad Corporation THID BKK Financial Finance Consumer oans 2,157 16, BCPG.TH Bcpg THID BKK nergy nergy lternative/other 1,635 24, WORK.TH Workpoint ntertainment THID BKK Consumer Cyclical eisure Movies & Related 1,161 8,395 MYSI 5 Stocks 104 PMT.MY Press Metal luminium Holdings MYSI KS Capital quipment Metal Proc & Fabrication 5,763 14, MYG.MY My g Services MYSI KS Technology Computer Sftwr Desktop 2,282 6, QR.MY Ql Resources MYSI KS Consumer Staple Food Meat Products 2, TIDO.MY Time Dotcom MYSI KS Technology Telecom Svcs Integrated 1,307 2, STX.MY Scientex MYSI KS Capital quipment Containers/Packaging 1, IDOSI 3 Stocks 30 B.ID Bank egara Indonesia IDOSI IDX Financial Banks Money Center 12,764 15, UTR.ID United Tractors IDOSI IDX Capital quipment Machinery Constr/Mining 10,870 11, BT.ID Bank Tabungan egara IDOSI IDX Financial Banks Money Center 2,860 7,

23 DRS BY COUTRY Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD SOUTH FRIC 2 Stocks 124 CSJ.Z Clicks Group SOUTH FRIC JS Retail Retail Drug Stores 3,358 11, TCPJ.Z Transaction Capital SOUTH FRIC JS Financial Finance Consumer oans 838 1,078 TURKY 2 Stocks 126 BMI.TR Bim Birlesik Magazalar TURKY IST Retail Retail Discount&Variety 5,968 16, TO.TR Tofas Turk Otom.Fabk. TURKY IST Consumer Cyclical uto Manufacturers 4,192 5,335 CHI 1 Stock 108 SQB.C Sociedad Quimica Y Minera De Chile B PreCHI SGO Basic Material Chemicals gricultural 14,617 17,540 COOMBI 1 Stock 138 IS.CO Interconexion lectrica COOMBI BOG Utility Utility lectric Power 5,640 1,658 MXICO 1 Stock 36 BJI.MX Bnc.Del Bajio Idbc. Mtpl. MXICO MX Financial Banks Money Center 2,542 3,907 SOUTH KOR 1 Stock 64 YBM.KR oen ntertainment SOUTH KOR KRX Consumer Cyclical eisure Movies & Related 2,459 4,729 Sorted by Trading Country, Market Capitalization -20-

24 DRS BY MRKT CPITIZTIO, (USD) Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD OVR 10 BIIO 13 Stocks 76 TSM.TW Taiwan Semicon.Mnfg. TIW TI Technology lec Semiconductor Mfg 230, , HFC.I Hdfc Bank IDI S Financial Banks Money Center 78,811 46, MUD.I Maruti Suzuki India IDI S Consumer Cyclical uto Manufacturers 42,390 84, VD.I Vedanta IDI S Basic Material Mining Metal Ores 35,101 50, IBK.I Indusind Bank IDI S Financial Banks Money Center 16,493 36, PGC.I Power Grid Corp.Of India IDI S Utility Utility lectric Power 15,751 20, JVS.I Jsw Steel IDI S Basic Material Steel Producers 14,848 17, SQB.C Sociedad Quimica Y Minera De Chile B PreCHI SGO Basic Material Chemicals gricultural 14,617 17, B.ID Bank egara Indonesia IDOSI IDX Financial Banks Money Center 12,764 15, CP.TH Central Pattana THID BKK Financial Real state Dvlpmt/Ops 11,799 16, MSY.I Motherson Sumi Sys. IDI S Consumer Cyclical uto/truck Original qp 11,568 16, S.I venue Supermarts IDI S Retail Retail Super/Mini Mkts 11,057 10, UTR.ID United Tractors IDOSI IDX Capital quipment Machinery Constr/Mining 10,870 11,592 1 BIIO TO 10 BIIO 46 Stocks 114 BRI.I Britannia Inds. IDI S Consumer Staple Food Grain & Related 8,857 14, IZ.I Indiabulls Housing Fin IDI S Financial Finance Consumer oans 8,785 35, DR3.BR Raia Drogasil On BRZI BSP Retail Retail Drug Stores 8,481 29, P.TH nergy bsolute THID BKK nergy nergy lternative/other 7,726 39, MDB.BR M Dias Branco Industria On BRZI BSP Consumer Staple Food Grain & Related 6,066 8, BMI.TR Bim Birlesik Magazalar TURKY IST Retail Retail Discount&Variety 5,968 16, BH.I Bharat lectronics IDI S Capital quipment erospace/defense 5,823 11, PMT.MY Press Metal luminium Holdings MYSI KS Capital quipment Metal Proc & Fabrication 5,763 14, T.I Petronet G IDI S nergy Oil&Gas Refining/Mktg 5,696 18, IS.CO Interconexion lectrica COOMBI BOG Utility Utility lectric Power 5,640 1, OC.BR ocaliza Rent Car On BRZI BSP Consumer Cyclical eisure Services 5,276 20, FH.I &T Finance Holdings IDI S Financial Financial Svcs Specialty 4,581 14, VKS.I Vakrangee IDI S Technology Computer Tech Services 4,341 27, TO.TR Tofas Turk Otom.Fabk. TURKY IST Consumer Cyclical uto Manufacturers 4,192 5, DI.I Dalmia Bharat IDI S Basic Material Bldg Cement/Concrt/g 3,929 5, PI1.I Page Industries IDI S Consumer Cyclical pparel Clothing Mfg 3,491 5, CSJ.Z Clicks Group SOUTH FRIC JS Retail Retail Drug Stores 3,358 11,

25 DRS BY MRKT CPITIZTIO, (USD) Page Symbol ame Trading Country xchange O'eil Sector O'eil Industry Group Mkt Val (Mil), USD vg Dly $ Vol (000), USD 40 GRU.I Gruh Finance IDI S Financial Finance Consumer oans 3,241 4, WI.TW Winbond ltn. TIW TI Technology lec Semiconductor Mfg 3,186 42, Z.BR zul Pn BRZI BSP Transportation Transportation irline 3,182 9, RB2.I RB Bank IDI S Financial Banks Money Center 3,142 6, IG.TW irtac International Gp. TIW TI Capital quipment Machinery Gen Industrial 3,104 17, BT.ID Bank Tabungan egara IDOSI IDX Financial Banks Money Center 2,860 7, MUTH.TH Muangthai easing THID BKK Financial Finance Consumer oans 2,821 10, T.I Tata Global Beverages IDI S Consumer Staple Beverages on lcoholic 2,708 20, DWH.I Dewan Housing Finance IDI S Financial Finance Consumer oans 2,543 24, BJI.MX Bnc.Del Bajio Idbc. Mtpl. MXICO MX Financial Banks Money Center 2,542 3, CVC.BR Cvc Bra.Opd. cdv. On BRZI BSP Consumer Cyclical eisure Travel Booking 2,483 13, YBM.KR oen ntertainment SOUTH KOR KRX Consumer Cyclical eisure Movies & Related 2,459 4, CM.TW Chroma te TIW TI Capital quipment lectrical Power/quipmt 2,452 17, IGU.BR Iguatemi mpresa Shopping Centers On BRZI BSP Financial Real state Dvlpmt/Ops 2,359 15, MYG.MY My g Services MYSI KS Technology Computer Sftwr Desktop 2,282 6, VOC.I Jubilant ife Scis. IDI S Health Care Medical Diversified 2,188 11, CC.TW ccton Technology TIW TI Technology Computer etworking 2,169 27, SWP.TH Srisawad Corporation THID BKK Financial Finance Consumer oans 2,157 16, CS.I Cesc IDI S Utility Utility lectric Power 2,069 7, QR.MY Ql Resources MYSI KS Consumer Staple Food Meat Products 2, SMF.I Sundram Fasteners IDI S Consumer Cyclical uto/truck Original qp 1,684 1, RZ.BR rezzo Industria On BRZI BSP Consumer Cyclical pparel Shoes & Rel Mfg 1,648 5, BCPG.TH Bcpg THID BKK nergy nergy lternative/other 1,635 24, PD.TW Parade Technologies TIW XTO Technology lec Semiconductor Mfg 1,582 17, TIDO.MY Time Dotcom MYSI KS Technology Telecom Svcs Integrated 1,307 2, IHP.BR Instituto Hermes Pardini On BRZI BSP Health Care Medical Services 1,253 3, WORK.TH Workpoint ntertainment THID BKK Consumer Cyclical eisure Movies & Related 1,161 8, STX.MY Scientex MYSI KS Capital quipment Containers/Packaging 1, IX.BR inx On BRZI BSP Technology Comp Sftwr Spec nterprs 1,078 4, MIIO TO 1 BIIO 2 Stocks 48 TCPJ.Z Transaction Capital SOUTH FRIC JS Financial Finance Consumer oans 838 1, SM.TW smedia Technology TIW TI Technology lec Semiconductor Mfg 715 5,

26 GOB FOCUS IST OCTIOS Market Cap lloca ons in % 120.0% 100.0% 80.0% 75.4% 60.0% 40.0% 20.0% 21.3% 0.0% Over 10 Billion 1 Billion to 10 Billion 3.3% 300 Million to 1 Billion 0.0% Under 300 Million Sector lloca ons in % 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 24.6% 20.0% 15.0% 10.0% 5.0% 0.0% Technology 14.8% Financials 16.4% 6.6% Consumer Staples Consumer Cyclical Basic Materials 6.6% Healthcare 3.3% nergy 4.9% 4.9% U lity Transporta on 9.8% 1.6% Capital quipment 6.6% Retail -23-

27 TOP PRFORMRS THIS WK Symbol ame Trading Country Market Value (Mil), USD O'eil Industry Group Date dded # of Weeks Since ddition Performance This Week Performance Since ddition Page # CM.TW Chroma te TIW 2,452 lectrical Power/quipmt 02/22/ % 83.35% 98 Z.BR zul Pn BRZI 3,182 Transportation irline 07/31/ % 16.85% 146 WORK.TH Workpoint ntertainment THID 1,161 eisure Movies & Related 01/13/ % 78.49% 66 CVC.BR Cvc Bra.Opd. cdv. On BRZI 2,483 eisure Travel Booking 10/04/ % % 74 SWP.TH Srisawad Corporation THID 2,157 Finance Consumer oans 05/02/ % 39.89% 46 BJI.MX Bnc.Del Bajio Idbc. Mtpl. MXICO 2,542 Banks Money Center 08/29/ % 6.85% 36 MDB.BR M Dias Branco Industria On BRZI 6,066 Food Grain & Related 01/05/ % 39.64% 116 JVS.I Jsw Steel IDI 14,848 Steel Producers 01/11/ % 59.42% 112 BRI.I Britannia Inds. IDI 8,857 Food Grain & Related 07/19/ % 24.18% 114 BT.ID Bank Tabungan egara IDOSI 2,860 Banks Money Center 02/21/ % 70.70% 34 IBK.I Indusind Bank IDI 16,493 Banks Money Center 05/12/ % % 28 TSM.TW Taiwan Semicon.Mnfg. TIW 230,195 lec Semiconductor Mfg 03/28/ % 33.42% 76 OC.BR ocaliza Rent Car On BRZI 5,276 eisure Services 12/21/ % 17.92% 72 PMT.MY Press Metal luminium Holdings MYSI 5,763 Metal Proc & Fabrication 01/05/ % % 104 QR.MY Ql Resources MYSI 2,016 Food Meat Products 02/28/ % 99.35% 120 For a complete list of historical recommendations, please see 'Cumulative Positions Since Inception' at the end of the book. -24-

28 TOP PRFORMRS SIC DDD Symbol ame Trading Country Market Value (Mil), USD O'eil Industry Group Date dded # of Weeks Since ddition Performance This Week Performance Since ddition Page # VKS.I Vakrangee IDI 4,341 Computer Tech Services 09/14/16 73 (9.72%) % 90 IBK.I Indusind Bank IDI 16,493 Banks Money Center 05/12/ % % 28 PMT.MY Press Metal luminium Holdings MYSI 5,763 Metal Proc & Fabrication 01/05/ % % 104 STX.MY Scientex MYSI 1,093 Containers/Packaging 08/13/ (1.81%) % 96 TCPJ.Z Transaction Capital SOUTH FRIC 838 Finance Consumer oans 05/30/ (8.42%) % 48 CSJ.Z Clicks Group SOUTH FRIC 3,358 Retail Drug Stores 03/31/ (10.01%) % 124 CVC.BR Cvc Bra.Opd. cdv. On BRZI 2,483 eisure Travel Booking 10/04/ % % 74 TIDO.MY Time Dotcom MYSI 1,307 Telecom Svcs Integrated 04/09/ (2.89%) % 92 P.TH nergy bsolute THID 7,726 nergy lternative/other 06/12/17 34 (3.35%) % 130 QR.MY Ql Resources MYSI 2,016 Food Meat Products 02/28/ % 99.35% 120 CC.TW ccton Technology TIW 2,169 Computer etworking 02/08/17 52 (1.29%) 95.73% 88 CM.TW Chroma te TIW 2,452 lectrical Power/quipmt 02/22/ % 83.35% 98 WORK.TH Workpoint ntertainment THID 1,161 eisure Movies & Related 01/13/ % 78.49% 66 BT.ID Bank Tabungan egara IDOSI 2,860 Banks Money Center 02/21/ % 70.70% 34 MYG.MY My g Services MYSI 2,282 Computer Sftwr Desktop 09/01/16 75 (5.38%) 68.48% 86 For a complete list of historical recommendations, please see 'Cumulative Positions Since Inception' at the end of the book. -25-

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Company Overview HDFC Bank has a 5% market share of deposits and loans in India. In addition to a leading market share in the Indian credit card market, it is also a market leader in mobile banking and auto loans segment. Its P ratio of 1.29% is the lowest among India s largest lenders. s of December 2017, HFC.I had a nationwide distribution network of 4,734 branches and 12,333 TMs. bout 52% of its branches are in semi-urban and rural areas. Q3 FY 2018 loans by type: retail banking, 55%; wholesale banking, 45%. ϴϬϬ ϳϬϬ ϲϭϭ 40-Week M ϲϵ Ͳ 10-Week M ϱϭϭ ϰϲϭ ϰϯϭ ϯθϭ ϯϰϭ Rising R/S line and good /D rating ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ ϭϵϭ ϭϳϭ ϭϱϭ Solid PS and revenue growth ϭϯϭ ϭϯϭ >/ sk>hd ϰϱd ϯϱd ϮϱD нϭй ϭϱd ϴ ϬD ϭϭ D Z ϭϭ &/ / >^ W^ /ZͿ ϭϳ Ϯϵ нϯϲй W^ й, ' :h ϭϭ ^ W ϭϭ ϭϭ Ϯϰϱ ϵθϭ Ϯ ^ > ^ D/> /ZͿ нϯϭй ^ > ^ й, ' D Z ϭϯ ϮϮ ϰϱ нϯϭй :h ϭϯ ϭϯ ϯϰϯ ϳϰϮ Ϭ нϯϵй ϱϭϳ ϱϯϳ ϱϳϯ ϱϳϱ Ͳϯ ϴй ϲϭϱ ϳ ϱϯϯ ϰϲϳd ϰθϭd ^, Z ^, > z &h ^ ϰθϲd ϰθϯd ϰθϱd ϱϭϲd W^ й ^hzwz/^ ϰϱϭ ϰϵϭ &h ^ ^ W ϭϯ Ͳϯ ϭй ϲϭϳ ϱϭϳd D Z ϭϯ ϴ ϱϳ :h ϭϯ ^ W ϭϯ ϭϯ D Z ϭϰ ϯϲ ϱθ :h ϭϰ ^ W ϭϰ ϭϰ D Z ϭϱ ϰϰ ϭϭ нϯϭй :h ϭϱ ^ W ϭϱ ϭϯϭ ϴϬϴ Ϭ ϱϭθ ϰϯϲ ϰ ϲϰϭ ϲϳϵ ϳϬϴ ϳϯϬ ϳϱϳ Ͳϲ ϴй ϴϭϮ ϴϱϰ ϵϭϭ ϵϱϯ ϵϵϭ ϵϵϯ ϭ Ϭϰϳ ϱϭϭd ϱϭϰd ϱϯϰd ϱϯϭd ϱϯϳd ϱϯϳd ϱϱϭd ϱϵθd ϲϯϯd ϲϲϭd ϲϵϵd ϳϮϮD ϭϱ ϲϭϭ ϰϱϰ Ϯ нϭθй D Z ϭϲ ϱϭ ϵϭ нϭϱй ϳϰϯ ϳϯϮ Ϯ нϯϰй :h W Ϯϯ ϮϬϭϳ Ɛƚ ϮϬ ϱͳljƌ,ŝőś Ϯϳ ϱͳljƌ >Žǁ ϭϰ ǀƐ /ŶĚ ǀŐ ϭ ϱdž O eil Methodology HFC.I broke out of a seven-week consolidation base and is actionable. Shares are at all-time highs and constructively trading above the 10-WM. Its Up/Down volume ratio of 1.7 and /D rating of B+ indicate strong institutional support. PS Rank is strong at 85. arnings stability rating is 4 for and 7 for et profit grew 20% y/y to IR 46.42B (consensus at IR 46.26B), its highest quarterly profit ever. IM was unchanged from previous quarter at 4.3%. Total revenues rose 23.9% y/y to IR B Cost-to- income ratio decreased to 41.2% from 43.8% in Q3 FY CS deposits rose 6.7% y/y. In December 2017, HFC.I announced its goal to raise IR 240B, of which IR 85B will be via issuance of shares to its parent company, HDFC td. The funds, when raised, will be used for growth initiatives over the next five years. The capital infusion is estimated to boost HFC.I s capital adequacy ratio by % from 15.5% as of December The Company is well placed to increase its loan book. In a recent study conducted by Greenwich associates, HDFC bank was the leader in the middle-market segment and second in large corporate banking in terms of market penetration. Its merging Corporates Group (CG) more than doubled its asset base in just three years to cross IR 650B in FY The low penetration of financial services in India compared with other developing economies combined with the government s initiatives to boost the country s housing market bodes well for HFC.I. Growth Drivers In Q3 FY 2018, II (73% of total income) increased 24.1% y/y to IR 103.1B. Other income (fees and commissions) increased 23.1% y/y. Total loans rose 27.5% y/y. Retail and wholesale loan segments grew 28.7% y/y and 26.4% y/y, respectively. ooking Forward By FY 2018, about 150M people in rural India are expected to have consumption levels on par with urban consumers. HFC.I expects its semi-urban and rural branches to contribute 35% of the total revenues by FY ext Catalyst: Q4 FY 2018 earnings on pril 20. Π ϮϬϭϲ t/>>/ D KΖ /> н K / -26- ϭ Ϭϲϵ ϭ Ϭϴϱ ϳϯϵD ϳϯϰD,ĚĨĐ ĂŶŬ,& /Ϳ tğğŭůlj ĂƐ ŽĨ &Z/ Ϯϳ DĂLJ ϮϬϭϲ Ĩ &Z/ Ϯϳ DĂLJ ϮϬϭϲ ocal Code: I:HDFCBK Bloomberg Symbol: HDFCB:I ISI: I

30 Hdfc Bank IDI HDFC BK (HFC.I) S BKS-MOY CTR 2.59B 1.92B SHRS RIGS BUSISS: MGMT owns X-DIV SC HDFC BK IMITD (TH BK) IS HODIG COMPY. TH BK IVSTMT OPRTIOS D O CCOUT OF TRDIG I FORIG PRIC = OFFRS RG OF BKIG SRVICS COVRIG COMMRCI D XCHG D DRIVTIV COTRCTS. TH RTI BKIG 10 X PS IVSTMT BKIG O TH WHOS SID D SGMT SRVS RTI CUSTOMRS THROUGH BRCH TWORK D TRSCTIO/BRCH BKIG O TH RTI SID. IT SO OTHR DIVRY CHS, S W S THROUGH TRTIV OFFRS FICI SRVICS. TH BK'S SGMTS ICUD DIVRY CHS. TH BK PROVIDS ITS CORPORT D TRSURY, RTI BKIG, WHOS BKIG D OTHR ISTITUTIO CITS RG OF COMMRCI D BKIG BUSISS. TH TRSURY SGMT PRIMRIY COSISTS OF TRSCTIO BKIG PRODUCTS. TH OTHR BKIG BUSISS 600 T ITRST RIGS FROM TH BK'S IVSTMT PORTFOIO, SGMT ICUDS ICOM FROM PR BKIG CTIVITIS. MOY MRKT BORROWIG D DIG, GIS OR OSSS O U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR 5.05T IDI SS IR BI PS RTIG IC IR1948(OH -3%) Up 64.14% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(4 STBIITY) +20% %(7 STBIITY) +20% COMPOSIT RTIG IVT T/O DBT % %: 140%: 107% %: 34%: 35% TX RT : : BCKOG X '17 BK.V R&D 11(0.6%) DIV GR RT+27% (9) DIV BT 0.55(14) PH 0.11(0.14) IBOM % Global Focus M IR VOUM 60 M 30 M 20 M 9M 5M PS (IR) % % 17.8% % CHG SS(BI IR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /533M DC % +21.6% /533M MR /547M JU /595M SP /628M DC % % 17.2% /656M MR /695M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Banks-Money Center % % 17.7% /719M 1047/736M 1069/725M 1115/755M SP 15 DC 15 MR 16 JU /784M SP '13-18 P..'S /775M 1165/757M 1212/775M 1233/799M DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT OW OW HI ST DC 17 13X 31X 28X MR 18 TM DTGRPHS 2/2/2018

31 IDI Indusind Bank Indusind Bank IBK.I Banks-Super Regional TIO IDI xch India, Rupees MktCap Rs Bil Sales Rs96.33 Bil Shares 526 Mil Float 426 Mil Price= Pune, IDI MGMT owns Price 50eps PS Rank 95 Vol =2,569,160 Rate = + 46% Rs (OH -2%) IDUSID BK IMITD IS COMMRCI BK. TH COMPY OPRTS I FOUR SGMTS: TRSURY, CORPORT/WHOS Scale 25 BKIG, RTI BKIG D OTHR BKIG OPRTIOS. TRSURY ICUDS IVSTMT PORTFOIO, PROFIT/OSS O 1100 S OF IVSTMTS, PROFIT/OSS O FORIG XCHG TRSCTIOS, QUITIS, ICOM FROM DRIVTIVS D MOY 20 MRKT OPRTIOS. CORPORT/WHOS BKIG ICUDS DIG TO D DPOSITS FROM CORPORT CUSTOMRS D Minimal overhead supply 0IBOM IDTIFID RIGS D XPSS OF TH SGMT. RTI BKIG ICUDS DIG TO D DPOSITS FROM RTI 18 Mar Year nd stimate 2015 stimate Breaks out of 16 PS % % Strong estimates consolidation on 800 n Cash Flow/Shr IR arnings Growth Rate Sales Gr Rt 14 n Pretax Margin % % ( 2 Stability) 35% 1.3x the average 700 u Return On quity % % (16 Stability) 33% daily volume a Sales % Change Composite Rating 12 l Sales (Mil) $ W Datagraph Global DG Rating Debt % % 44% 45% e vg Daily Vol (000) Tax Rate % 33% 33% e Up Down Volume Backlog k ccum/dist Rating R and D 3.52 X '13 Bk Val l Relative Global Relative Strength Str Div IR 3.00(0.6%) Div Gr Rt 35%(22) 420 y Global Group Rank Group Rank Beta 1.95(85) lpha -0.08(0.04) Source: Corporate Website IndusInd Bank (IBK.I), India s sixth largest private bank by assets, serves retail and corporate clients. The Company s industry-beating loan and deposit growth is driven by geographical expansion. Company Overview s of December 2017, IndusInd had 1,320 branches in India, up 5.6% m/m, with three offices in ondon, Dubai, and bu Dhabi. Q3 FY 2018 loans by segment: corporate banking, 59%; retail banking, 41%. O eil Methodology The stock is trading on the right side of a 17-week consolidation base above its 50-DM and 4% below its pivot of IR 1,804. Its RS Rating is at 44 with a neutral Up/Down volume ratio of 1. However, its /D Rating of - indicates strong accumulation. Institutional sponsorship increased 25% y/y to 642 as of December Considering its robust fundamentals, investors can look to accumulate. In Q3 FY 2018, II rose 20.1% y/y to IR 18.95B, (consensus of 22%; IR 19.26B); deposits grew 23% y/y (consensus of 22%). IM came in at 3.99% (consensus of 3.8%), due to a 42.9% CS ratio, up 5.8% y/y. ow-cost savings deposits rose 68% y/y. et profit grew 25% y/y to IR 9.36B (consensus at 24.1%; IR 9.3B). Gross P is stable at 1.16%, compared with 1.08% in Q2 FY xpectations call for PS growth of 26% (+IR 60.64) and 28% (+IR 77.63) in FY 2018 and FY 2019, respectively. Growth Drivers In Q3 FY 2018, loan growth of 25% y/y (consensus of 23-25%) was ahead of the industry growth (sub 12%) and driven by 26% and 24% y/y growth in corporate (diversified) and retail loans (67% auto loans), respectively PS (IR) % Change Sales (Mil IR) % Change Margin fter Tax Return on quity T4Q P ow-high Fund/Shares (000) Good PS rank % % 12.7% /54M % % 12.9% /59M % % 13.9% /62M % % 14.0% +17.9% /76M Good growth rates % % 13.1% /75M % % 12.4% +17.0% /75M % % 12.4% /81M 10-Week M % Jun Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 WOD Copyright 2014 William O'eil + Co.,Inc. ll rights reserved wonda@williamoneil.com % 12.6% +18.3% /84M % % 12.1% /91M % % 12.2% +18.9% /84M 40-Week M Solid PS and revenue growth % % 12.4% /105M % % 14.0% +17.1% /94M % % 14.1% /87M Good /D rating % % 13.6% +18.3% /82M % % 13.2% /81M /81M Volume 11,000,000 6,000,000 3,000,000 Mar Q % P s ow 12x ow 20x Hi 30x st. 0.0x s &p 5/12/2014 In October 2017, IBK.I acquired India s second-largest microfinance company, Bharat Financial Inclusion (1,400 branches) for IR 154B. ccording to management, the deal will help scale its microfinance book from 3% to 7% of its total loan portfolio. The cost of funds on micro loans is expected to decline bps. The merger will increase the Company s 9.5M customer base to 16.3M; IBK.I added 0.5M customers in Q3 FY IndusInd has partnered with Indraprastha Gas (IG), India s largest CG provider. With this, it has become the sole provider of prepaid CG smartcards for commercial and private vehicles, facilitating cashless transactions. IG has a network of 421 CG stations. pproximately 1M vehicles use CG in India. IBK.I and Overseas Private Investment executed an agreement for a $225M loan in June 2017, which will support the expansion of the Company s micro and small and medium enterprise lending programs. ooking Forward IBK.I targets 25-30% loan growth annually, with a focus on the retail segment. The Company aims to double its customer base to more than 20M and increase its branch network to 2,000 by 2020, thereby maintaining a CS ratio of 40%. ext catalyst: The Company s Q4 FY 2018 earnings release on pril 19, ocal Code: I:IDUSIDB Bloomberg Symbol: IIB:I ISI: I

32 Indusind Bank IDI IDUSID BK (IBK.I) S BKS-MOY CTR M M SHRS RIGS BUSISS: MGMT owns X-DIV SC IDUSID BK TD. IDUSID BK IMITD (TH BK) IS OTHR BKIG OPRTIOS. TH TRSURY SGMT ICUDS PRIC = GGD I BKIG D PR-BKIG SRVICS. TH BK IS IVSTMT PORTFOIOS, PROFIT OR OSS O S OF 10 X PS IVOVD I CCPTIG DPOSITS, SUCH S SVIGS CCOUTS, IVSTMTS, PROFIT OR OSS O FORIG XCHG CURRT CCOUTS D FIXD DPOSITS, D BKIG SOUTIOS. TRSCTIOS, QUITIS, ICOM FROM DRIVTIVS D MOY TH BK IS GGD I GRTIG OS TO VRIOUS SGMTS, MRKT OPRTIOS. TH CORPORT/WHOS BKIG SGMT 600 SUCH S IDUSTRIS D BUSISSS, D RTI OS; ICUDS DIG TO D DPOSITS FROM CORPORT CUSTOMRS. FICIG RG OF VHICS OR QUIPMT TO IDIVIDUS, TH RTI BKIG SGMT ICUDS DIG TO D DPOSITS D PRIORITY SCTOR DIG. TH BK'S SGMTS ICUD FROM RTI CUSTOMRS. TH BK OPRTS PPROXIMTY 1,000 TRSURY, CORPORT/WHOS BKIG, RTI BKIG D BRCHS. TH COMPY HS OPRTIOS I IDI U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR 1.06T SS IR BI IDI PS RTIG 85 IR1761(OH -3%) Up % Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(1 STBIITY) +23% %(2 STBIITY) +23% COMPOSIT RTIG IVT T/O DBT % %: 45%: 49% %: 34%: 34% TX RT : : BCKOG X '17 BK.V R&D 6(0.3%) DIV GR RT+19% (8) DIV BT 0.72(13) PH 0.06(0.06) IBOM Global Focus M IR VOUM 9M 6M MR Q 80% BOV ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 13.2% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 14.7% +16.8% % % 14.1% % % 14.5% +17.4% % % 14.7% / / / / /98331 DC 13 MR 14 JU 14 SP 14 DC % % 15.3% +18.2% % % 15.1% /103M MR /114M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Banks-Money Center % % 15.6% +15.1% /145M SP % % 15.1% /156M DC % % 15.3% +16.1% /160M MR JU Q ' % 15.8% 15.9% 15.4% 15.8% /168M JU /174M SP /177M DC /173M MR /174M JU 17 FOR IFORMTIO, C OR VISIT M P..'S OW OW HI ST /178M SP 17 DC 17 12X 35X 37X MR 18 TM DTGRPHS 2/2/2018

33 IDOSI &K ϮϬ dž Bank egara Indonesia ĂŶŬ ĞŐĂƌĂ /ŶĚŽŶĞƐŝĂ / /ŶĚŽŶĞƐŝĂ ^ džđś / ϭϭϭϭϭϵϲϲϭϱ нϲϯ Ϯϭ Ϯϱϭ ϭϵϰϲ W^ ZĂŶŬ ϵϭ ďŷŝ ĐŽ ŝě ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ DŬƚ ĂƉ / Zϭϭϭ Ϯϯd ^ĂůĞƐ / Zϰϵ ϮϬd / K ^/ ^ŚĂƌĞƐ ϭθ ϰϲϯ &ůžăƚ ϳ ϮϬϬ Wd < ' Z / K ^/ W Z^ ZKͿ d < /^ / K ^/ Ͳ ^ KDW z WZ/D Z/>z ' ' / </' ^ dkz /d /^ KW Z d/' h Z d, D < / KZ / h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ ϲϭ ϲϳ ϳϱ ϴϰ ϭϱϰ ϱϯ Ϯϲϲ ϬϬ ϯϭϯ ϬϬ ϯϳθ ϬϬ ϰθϱ ϱϯ ϱϳθ ϮϬ ϰθϲ ϴϯ W^ / Z ϱϲϳ ϲϱ ϭϳй ϲϵθ ϴϳ Ϯϯй ^, &>Kt ^,Z / Z ϯϱϵ ϳϵ ϱϯϯ ϱϭ ϰϲϯ ϲϰ ϯθϱ Ϭϲ ϮϴϬ Ϭϲ ϱϭϳ ϰϭ ϱϯϰ ϬϮ ϱϲϭ ϯϯ ϳϱϲ ϵϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϴй ϭϭй ϭϱй Ϯϭй Ϯϳй Ϯϵй ϯϯй ϯϯй Ϯϲй ϮϬϭϰͲϭϲ ϱй ϭϭ ^ƚăďŝůŝƚljͿ ϭϰй Z dhz K Yh/dz й ϲй ϴй ϭϰй ϭϲй ϭϲй ϭϳй ϮϬй ϮϬй ϭϯй ϮϬϭϮͲϭϲ ϭϰй ϭϭ ^ƚăďŝůŝƚljͿ ϭϯй ^ > ^ й, ' ϳй ϲй ϭϲй ϭϭй ϵй ϭϭй ϴй Ϯϱй ϳй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ / Z ϭϵd ϮϬD ϮϯD ϮϲD ϮϴD ϯϭd ϯϰd ϰϯd ϰϱd /s d K t <>z ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď Ϭϲ d й ϮϬϭϯͲϭϱ ϳϮй ϱϰй ϱϭй d 'Z W, Z d/' ϱϵ ϱϵ ϲϭ ϲϯ ϲϭ ϲϭ ϲϯ ϲϭ ϲϯ d y Z d ϮϬϭϯͲϭϱ ϮϬй ϮϬй ϮϬй s' />z sk> ϬϬϬͿ ϮϮ Ϭϯϭ Ϯϭ ϲϳϲ ϭϵ ϲϲϰ ϭθ ϵϭϯ ϭθ ϯϭϱ ϭθ Ϭϴϴ ϭϲ ϲϰϳ ϭϳ ϴϴϮ ϭϳ ϳϬϲ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd ϭ Ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϭ Ϯ ϯ Ϯ ϭ Ϯ ϰ Z Θ < s > ϭ ϰϱdž Ζϭϱ hd /^d Z d/' Ͳϭϰ Ͳϭϲ Ͳϭϰ ϭϯ ϴ ϭϵ ϯϲ ϰθ ϱϭ /s / Z ϭϰϱ ϳϭ Ϯ ϭйͿ /s 'Z ZdнϮϰй ϭϵͿ Z > d/s ^dz 'd, ϱϭ ϱϯ ϱϭ ϱϵ ϱϱ ϱϭ ϲϯ ϲϯ ϲϯ d ϭ ϭϳ ϯϭ ϬϬͿ >W, Ϭ Ϭϭ Ϭ ϬϭͿ 'ZKhW Z < ϰϭ ϰϯ ϵϱ ϰϯ ϱϯ ϱϭ ϰϱ ϱϳ ϰϳ ϮϬϭϱ DW>Kz ^ Ϯϲ ϴϳϱ ϭйͿ Source: Corporate Website >K' &ŝdžğěͿ WZ/ Ϯϲ< Ϯϰ< ϮϮ< ϭϵ< ϭϳ< ϭϱ< ϭϯ< ϭϯ< ϭϭ< Breaking out of 5-month consolidation ϭϭ< ϵϭϭϭ High up/down volume, rising /D and R/S ratings Good PS rank ϴϬϬϬ ϳϬϬϬ Bank egara Indonesia (BI) is the fourth-largest bank in Indonesia, in terms of assets. The Bank continues to benefit from its robust loan growth, driven by branch expansion. Company Overview BI was the first state-owned bank, to go public, in Indonesia. The state still owns about 60% stake in the Bank, whereas foreign institutions and domestic public own 32% and 8%, respectively. The Bank has an extensive distribution network comprising 2,051 outlets, 54,543 branchless banking centers, and 17,178 TMs. It has eight overseas offices in Singapore, Hong Kong, ondon, Tokyo, ew York, Osaka, Yangoon, and Seoul. BI s Q loan portfolio by segment: business banking 72%, consumer 16%, overseas 6%, and subsidiaries 6% K, ͲϮй Strong estimates D'Dd ŽǁŶƐ ϲϭϭϭ ϲ ϬϮϱ нϱϭ ϬϬ ϱϭϭϭ ϰϲϭϭ / Z нϭ ϴϰй ϰϯϭϭ ϯθϭϭ 10-Week M 40-Week M ϲϯ ϯϰϭϭ ϯϭϭϭ ϮϲϬϬ ϮϰϬϬ ϮϮϬϬ ϭϵϭϭ Good /D rating ϭϳϭϭ ϭϱϭϭ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ϭϭϭϭ Increasing sponsorship ϵϭϭ >/ sk>hd ϮϳϬD ϮϭϬD ϭϱϭd нϵϰй ϵϭd 4827(6 '(/$<(' $7 /($67 0,187(6 Ϯϱ ϬD Ϯ&/ / >^ ^ĞƉ ϭϯ ĞĐ ϭϯ Ϭ W^ / ZͿ ϵϰ ϬϬ ϭϭθ ϬϬ й W^ й, ' нϯϭй нϭϱй Ϭ^ > ^ D/> / ZͿ ϳ ϳD ϴ ϳD DĂƌ ϭϯ ϭϭϭ ϵϱ нϯϰй ϴ ϭd :ƵŶ ϭϯ ϭϭθ ϰϲ нϯϳй ϴ ϳD ^ĞƉ ϭϯ ϭϯϭ Ϭϵ нϯϵй ϵ ϬD ĞĐ ϭϯ ϭϯϱ ϬϮ нϯϱй ϵ ϭd DĂƌ ϭϰ ϭϯθ ϯϭ нϭϲй ϵ ϱd :ƵŶ ϭϰ ϭϯϲ ϯϵ нϭϱй ϭϭ ϭd ^ĞƉ ϭϰ ϭϰϯ ϰϲ нϭθй ϭϭ ϴD ĞĐ ϭϰ ϭϳϭ Ϭϱ нϯϲй ϭϭ ϴD DĂƌ ϭϱ ϭϱϭ Ϯϲ нϭθй ϭϭ ϱd :ƵŶ ϭϱ ͲϮϬ ϳϴ Ͳϭϭϱй ϭϭ ϭd ^ĞƉ ϭϱ ϭϵϭ ϱϵ нϯϰй ϭϭ ϲd ĞĐ ϭϱ ϭϲϰ ϳϳ Ͳϯй ϭϭ ϴD DĂƌ ϭϲ ϭϲϭ Ϭϭ нϲй ϭϯ ϮD :ƵŶ ϭϲ ϳϰ ϯϵ нϰϱθй ϭϯ ϲd ^ĞƉ ϭϲ ϭϯϭ ϳϵĞ ͲϯϭйĞ ϭϭ ϬDĞ ĞĐ ϭϲ ϭϳϭ ϱϭğ нϯйğ ϭϭ ϵdğ DĂƌ ϭϳ ϭϲϱ ϭϭğ нϯйğ ϭϭ ϰdğ :ƵŶ ϭϳ ϭϲϳ ϴϵĞ нϭϯϲйğ ϭϭ ϲdğ ^ĞƉ ϭϳ ϭϳϭ ϯϵğ нϯϭйğ ϭϭ ϵdğ ĞĐ ϭϳ ϭϳϭ ϳϳĞ нϭйğ ϭϯ ϰdğ й^ > ^ й, ' Ͳϭй нϯϳй й W^ й ^hzwz/^ Ͳϴ ϯй нϯϯ ϱй ϵ&h ^ Ϯϯϵ ϮϰϮ нϭϰй нϭϯй нϭϳй нϱй нϭϳй нϭϳй нϯϭй нϯϭй нϯϯй нϭϭй Ϭй нϭϱй нϯϯй ͲϲйĞ ͲϴйĞ ͲϭϰйĞ ͲϭϰйĞ нϭϵйğ нϭϰйğ ϮϴϮ ϯϭϯ Ϯϴϱ Ϯϳϲ ϯϭϳ ϯϰθ ϯϵϯ ϰϯϲ ϰϳϰ ϰϳϲ ͲϮй ͲϬ ϰй ϰϱϵ ϰϭϯ ϰϯϲ ϰϲθ ϰθϯ ϰθϲ ϯ^, Z ^, > z &h ^ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ Ϯ ϯ ϯ W ϭϭ O eil Methodology Driven by an 11% y/y growth in net interest income and improved cost/income ratio, BI reported a robust 47% y/y growth in net profit in H1 2017; thereby, generating a good PS rank of 86. xpectations call for 13% and 16% PS growth in 2017 and 2018, respectively. Technically, the stock has high O eil ratings and ranking, with solid RS rating of 79 (which is set to improve as the stock has gathered momentum), The Banks-Money Center industry group has sharply jumped in rank, over the past four weeks. The group is now ranked 10, up from 60, eight weeks ago. n Up/Down volume ratio of 2.5 reflects strong accumulation. Institutional sponsorship increased 17% y/y to 557, in June By leveraging on infra boom in Indonesia, BI targets to win infra projects, by maintaining good rapport with the government. The asset quality of BI is improving, achieved by limiting exposure in high P sectors and expanding in lower risk business. P improved 2.8%, in Q (from 3% in Q1 2017); whereas restructured loans came down to 7.1%, in Q (versus 8.4% in Q and 7.8% in Q1 2017). oan at risk ratio is showing a declining trend and was at 11.3% at the end Q (versus 12% in Q and Q1 2017). Growth Drivers BI recorded a strong loan growth of 15.4% y/y, as on H It has consistently outperformed the industry, which only grew 9.5%. In H1 2017, the loan to state-owned-enterprises (SO) segment went up 27% y/y. The consumer loans increased 10% y/y, primarily driven by robust growth in payroll loans. ooking Forward BI expects its loan book to grow 15-17% in 2017, driven by a 19-21% increase in its funding and Indonesia s GDP growth of 5.3%. The Bank forecasts a fee income growth of 20% in 2017, mainly driven by recurring fees from trade finance, bank assurance, and fund management. It has also planned to open a branch office in ustralia, which is expected to commence operations in The next catalyst is Q earnings release, on October 16, Π ϮϬϭϳ t/>>/ D KΖ /> н K / -30- ϮϬϭϲ Ɛƚ ϭϭ Ϭ ϱͳljƌ,ŝőś ϭϲ Ϭ ϱͳljƌ >Žǁ ϳ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϵdž ĂŶŬ ĞŐĂƌĂ /ŶĚŽŶĞƐŝĂ / Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ &ĞďƌƵĂƌLJ Ϭϲ ϮϬϭϳ Ĩ DŽŶ &ĞďƌƵĂƌLJ Ϭϲ ϮϬϭϳ ocal Code: IBBI Bloomberg Symbol: BBI:IJ ISI: ID

34 Bank egara Indonesia BK GR IDOSI IDOSI (B.ID) IDX BKS-MOY CTR 18.46B 7.20B SHRS RIGS BUSISS: MGMT owns X-DIV SC PT BK GR IDOSI (PRSRO) TBK IS IDOSI-BSD SHRIH-COMPIT BKIG SRVICS THROUGH ITS SUBSIDIRY, PRIC = COMPY PRIMRIY GGD I BKIG SCTOR. IT OPRTS PT BK BI SYRIH. ITS OTHR SUBSIDIRIS ICUD PT BI 10 X PS UDR TH M BK BI OR BI. TH COMPY'S MJOR PRODUCTS IF ISURC, WHICH PROVIDS IF ISURC; PT BI D SRVICS ICUD CRDIT CRDS, SVIG CCOUTS, CURRT MUTIFIC, WHICH IS GGD I FICIG BUSISS; PT BI CCOUTS D FIXD DPOSITS, S W S VRIOUS TYPS OF SCURITIS, WHICH PROVIDS SCURITIS UDRWRITIG D 3400 OS, SUCH S HOUSIG OS D OTHR COSUMR OS. BROKRIG SRVICS, D BI RMITTC TD, WHICH OFFRS 3200 BSIDS COVTIO BKIG, IT SO OFFRS MOY RMITTC SRVICS U W K Y PS IDR (DC.) CF/SHR IDR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IDR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IDR T SS IDR64.82T IDOSI PS RTIG 74 IDR9300(OH -6%) PRIC SC Up 54.36% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(11 STBIITY) +17% %(10 STBIITY) +16% COMPOSIT RTIG IVT T/O DBT % %: 57%: 61% TX RT %: 20%: 20% : : BCKOG X '17 BK.V R&D DIV145.71(2.3%) DIV GR RT+18% (24) BT 1.18(19) PH 0.08(0.06) JKCOMP % Global Focus M IDR B VOUM 90 M DC Q -48% BOW ST. PS (IDR) % CHG SS(BI IDR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % +19.8% % % 25.3% +19.5% % % 25.1% +19.8% % % 24.7% % % 26.9% % % 24.5% % % % 33.7% % % 26.0% % % 22.5% #+462% % 10.3% % % 21.6% % % 23.2% % % 21.1% % % 20.4% % % 22.5% /1760M 304/1837M 337/1892M 380/1980M 422/1857M 453/1897M 454/1920M 442/1670M 387/1815M 421/2101M 455/2293M DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Banks-Money Center 483/2527M SP /2538M 547/2816M 538/2715M 546/2840M 545/2862M DC 16 MR 17 JU 17 SP 17 DC 17 FOR IFORMTIO, C OR VISIT % % 20.0% 60 M 40 M 30 M MR Q % '13-18 P..'S OW OW HI ST 7X 10X 16X MR 18 TM DTGRPHS 2/2/2018

35 IDI RB Bank strong estimates Good growth rtes Minimal overhead supply Source: Corporate Website Strong PS rank High up/down volume, strong /D rating, rising R/S rating RB Bank td (RB2.I) is a rapidly growing private sector bank, expanding its presence across India. The bank is set to benefit from expansion initiatives in the underpenetrated Indian financial sector. Company Overview RB is a scheduled commercial bank in India that provides services to 4M customers through a network of 246 branches and 394 TMs. Q3 FY 2018 revenues by segment: treasury, 35%; retail banking, 30%; corporate/wholesale banking, 29%; other, 6%. O eil Methodology The stock is currently consolidating in a flat base with resistance at IR 600. s an alternate buy point (aggressive entry), investors can look to accumulate once the stock retakes its 200- DM on above average volume. Technical profile is good. Up/Down volume ratio of 3.2 and /D Rating of B+. RB reported Q3 FY 2018 net interest income of IR 4.7B, up 44% y/y, and net profit of IR 1.7B, up 28% y/y. IM expanded 3.89%, up 15bps q/q, led by the falling cost of funds. The Company reported double-digit revenue and PS growth in the trailing seven quarters, generating a strong PS Rank of 97. Consensus estimates call for PS growth of 26% and 33% in FY 2018 and FY 2019, respectively. Growth Drivers RB boasts one of the top asset qualities and improving KPI. It had robust growth from FY , with II and advances CGR of 54% and 65%, respectively. RB s partnership with Bajaj Finance is helping to expand its customer base by leveraging the latter s established base of 18M customers and 33,000 distribution points. 10-Week M Rising R/S line with good /D rating On ovember 30, 2016, RB launched its first successful cashless disbursement in the rural segment, becoming the first bank in India to introduce the adhaar Payment Bridge System for micro-finance loan disbursements. RB, along with eogrowth Credit Pvt. td and Overseas Private Investment Corp., the U.S. government s development finance institution, formed a joint commitment to provide financing for small and medium enterprises in the Indian retail space in October The Bank acquired a 10% stake in Utkarsh Micro Finance td, a non-banking financial company to offer services to under-banked segments of society. RB plans to extend its product portfolio to Utkarsh Micro Finance s customers and has obtained all the necessary approvals. This would enable RB to extend its distribution footprint and strengthen financial inclusion initiatives across rural areas. ooking Forward In its Vision 2020, RB aims for robust loan growth of 30-35% per annum, an increase in CS ratio of % per year, and to maintain its return on assets at approximately 1.5%. ext Catalyst: The Company reports Q4 FY 2018 earnings on pril ocal Code: I:RBBK Bloomberg Symbol: RBK:I ISI: I976G01028

36 RB Bank IDI RB BK (RB2.I) S BKS-MOY CTR M M SHRS RIGS BUSISS: MGMT owns X-DIV SC RB BK IMITD IS BKIG COMPY. TH BK IS GGD RTI CUSTOMRS OF TH BK THROUGH BRCH TWORK OR OTHR PRIC = I PROVIDIG RG OF BKIG D FICI SRVICS, PPROVD DIVRY CHS; TRSURY, WHICH ICUDS 10 X PS ICUDIG COMMRCI BKIG, RTI BKIG, GRICUTUR IVSTMTS, FICI MRKTS CTIVITIS UDRTK O FIC D FICI ICUSIO, TRSURY OPRTIOS D BHF OF TH BK'S CUSTOMRS, TRDIG, MITC OF OTHR BKIG RTD CTIVITIS. TH BK'S SGMTS RSRV RQUIRMTS D RSOURC MOBIIZTIO FROM OTHR 170 ICUD CORPORT/WHOS BKIG, WHICH ICUDS DIG, BKS D FICI ISTITUTIOS, D OTHR BKIG DPOSITS D OTHR BKIG SRVICS PROVIDD TO CORPORT OPRTIOS SGMT, WHICH ICUDS PR BKIG CTIVITIS, 160 CUSTOMRS OF TH BK; RTI BKIG, WHICH ICUDS SUCH S BCSSURC D CRDIT CRDS. 150 DIG, DPOSITS D OTHR BKIG SRVICS PROVIDD TO STIMT 2019 STIMT U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR BI. SS IR44.69 BI IDI PS RTIG IC IR482.75(OH -19%) Up 24.55% Since ddition % % RIGS GROWTH RT SS GR RT % (8 STBIITY) +40% %(11 STBIITY) +45% COMPOSIT RTIG IVT T/O PRIC SC DBT % %: 352%: 184% 31%: 32%: 35% TX RT : : BCKOG X '17 BK.V R&D 1.8(0.4%) DIV GR RT DIV BT 0.96(11) PH 0.01(0.01) IBOM Global Focus M IR % VOUM 10 M 6M 3M 2M 1M 600 K JU Q PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX RTUR O QUITY T4Q % % % 5.8% +5.1% +46% 8.8% +9.7% 8.3% 8.6% 9.9% 9.3% +11.2% % % 9.4% P OW-HIGH % % 8.4% +11.0% /32328 FUD/SHRS (000) DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Banks-Money Center SP 15 DC 15 MR 16 JU 16 SP % % 11.3% +11.2% /39454 DC % % 10.7% +12.2% /40377 MR % '13-18 P..'S /41555 JU 17 FOR IFORMTIO, C OR VISIT OW OW HI ST SP 17 DC 17 25X 41X 47X MR 18 TM DTGRPHS 2/2/2018

37 IDOSI Bank Tabungan egara Increased estimates Good growth rates Minimal overhead supply Break out to new highs Bank egara Branch Source: Corporate Website Improving /D, 2.4x up down volume 40-Week M 10-Week M Bank Tabungan egara is one of the largest Indonesian banks in terms of assets. Strong loan growth, driven by subsidized mortgage demand, should benefit the bank. Company Overview Bank Tabungan egara (BT) operates through Bank BT, with its business activities focused in three sectors: mortgage loans and consumer banking, housing and commercial banking, and Shariah-compliant banking (Islamic banking). It is the market leader in the country s mortgage loans sector, with a share of 35.62%. The Bank has an extensive distribution network comprising 2,954 post offices, 1,964 TMs, and 903 outlets. Q loan book composition: subsidized mortgage, 37%; non-subsidized mortgage, 36%; construction, 13%; commercial, 7%; other housing, 5%; consumer, 2%. O eil Methodology The stock is currently facing selling pressure and trading below its 21- and 50-DM. We believe that it is primarily due to a slowerthan-expected Tapera rollout (a housing savings program to help low-income people attain proper housing). BT has a strong PS Rank of 98, as it was able to accelerate earnings growth in recent years by improving margins and high loan growth. It reported average PS growth of 42% in , compared with 15% in Increasing sponsorship Rising R/S line with strong /D rating Solid PS and revenue growth In Q3 2017, loans grew 20% y/y, supported by the government program and a 31% y/y increase in subsidized mortgage loans. Supported by y/y growth of 20% in CS, deposits grew 14% y/y, generating a comfortable loan-to-deposit ratio of 110%. Driven by a 17% y/y growth in net interest income, net interest margin stood at 4.49%. sset quality also improved with P at 3.07%. Growth Drivers BT holds 96.69% of national subsidized mortgage disbursements. Driven by its leadership in subsidized mortgage disbursement, BT s loan book growth outpaced the industry. In ugust 2017, BT loans grew 20.08% y/y, far above industry growth of 8.3% y/y. The Bank is expected to benefit from the government housing program that provides housing to the low-income population. Of the total 504,122 targeted subsidized mortgage units, only 319,798 units were approved by the Bank as of September 2017, leaving enough opportunity to grow. ooking Forward BT expects total loans to grow 21 23% y/y in It also targets to keep its P ratio below 2.5% by December ext catalyst: The Company s Q results are due on February 12, ocal Code: IBBT Bloomberg Symbol: BBT:IJ ISI: ID

38 Bank Tabungan egara BK TBUG GR IDOSI (BT.ID) IDX BKS-MOY CTR 10.48B 4.09B SHRS RIGS BUSISS: MGMT owns SC PT BK TBUG GR (PRSRO) TBK IS IDOSI-BSD WORKIG CPIT O. BSIDS COVTIO BKIG, IT SO PRIC = COMPY PRIMRIY GGD I BKIG SCTOR. IT OPRTS ITS OFFRS SHRIH-COMPIT BKIG SRVICS. ITS OFFIC 10 X PS BK UDR TH M BK BT. ITS PRODUCTS ICUD SVIG TWORK IS COMPRISD OF BRCHS D SUB-BRCHS THT R CCOUTS, CURRT CCOUTS D FIXD DPOSITS. IT SO OCTD CROSS IDOSI. OFFRS VRIOUS OS, SUCH S HOM O, IVSTMT O D U W K Y PS IDR (DC.) CF/SHR IDR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IDR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP IDR 38.48T SS IDR19.84T IDOSI PS RTIG 97 IDR3670(OH 0%) Up 70.70% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (7 STBIITY) +15% %(21 STBIITY) +17% COMPOSIT RTIG IVT T/O DBT % %: 159%: 145% TX RT %: 27%: 21% : : BCKOG X '16 BK.V R&D DIV 49.46(1.4%) DIV GR RT+3% (33) 0.20(0.11) BT 0.75(4) PH JKCOMP % Global Focus M IDR VOUM 300 M 200 M SP Q -52% BOW ST. PS (IDR) % CHG SS(BI IDR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 16.2% +14.3% /679M DC % % 10.5% +14.3% /782M MR % % 6.2% +12.8% /1085M JU % % 6.5% +11.0% /1000M SP % % 10.0% +9.3% /1207M DC % % 11.1% +10.1% % % 11.3% +11.5% /1175M MR 15 86/1234M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Banks-Money Center % % 9.7% +12.6% /1215M SP % % 15.0% +14.2% /1116M DC % % 11.7% +14.4% % % 12.7% +13.6% /1151M 132/1279M MR 16 JU % % 13.2% +14.3% /1433M SP % % 19.6% +15.8% % % 12.7% +16.2% % % 13.8% +15.2% /1370M 158/1469M 172/1506M 187/1476M DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 14.2% +15.5% 100 M 70 M 40 M DC Q % '13-18 P..'S OW OW HI ST DC 17 5X 11X 12X MR 18 TM DTGRPHS 2/2/2018

39 MXICO ŶĐ Ğů ĂũŝŽ /ĚďĐ DƚƉů :/ Dy W^ ϭϯ dž ϭϯ Ϭϴ ϭϭ ϱϰ ϭϭ ϬϬ ϵ Ϯϯ ϴ ϰϲ ϳ ϲϵ ϲ ϵϯ ϲ ϭϱ ϱ ϯθ Bnc.Del Bajio Idbc. Mtpl. D y/ K /dz džđś Dyϰϭ ϬϬϬϬϬϬ нϱϯ ϱϱ ϱϰϰϲ ϳϰϴϮ W^ ZĂŶŬ ϵϳ ĂŶŬƐͲDŽŶĞLJ ĞŶƚĞƌ >ĞŽŶ D y/ K DŬƚ ĂƉ Dyϰϰ Ϭϵ ^ĂůĞƐ DyϮϭ ϱϳ ^ŚĂƌĞƐ ϭ ϭϵϭ &ůžăƚ ϭ ϭϵϭ D'Dd ŽǁŶƐ (PHUJQJ /RQJ nnual estimates revised upwards ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϭ Shares are constructivelyθϭ trading along its 21-DMϳϬ ϲϭ ϱϭ ϰϲ Strong earnings profile Group ranked at 12; among the 197 industry groups in our database ϯ Ϯϯ Ϯ ϵϯ ϰϯ O eil Methodology The stock is breaking out of a 24-week IPO base (saucer-withhandle). We recommend that investors accumulate the stock at current levels. The stock s RS line is trending higher and its RS Rating currently stands at 85. /D Rating improved to B+. Strong PS Rank of 97. Consensus estimates have PS growing 11% in BanBajio belongs to the Banks-Money Center industry group, currently ranked seventh out of Mexico s 50 industry groups. The Company reported solid Q numbers above consensus estimates. et income was MX 1.115B (up 75% y/y). The Company s IM grew to 5.42% in Q and its efficiency ratio was 42.3%. нϭ ϭϳй ϯϭ ϭ Superior profitability results in accelerating RO and Pretax Margin Ϯ ϬϬ ϭ ϴϱ ϭ ϲϵ Ϯϲ Ϯϰ ϮϮ ϭ ϰϲ ϭϵ ϭ ϯϭ ϭϳ ϭ ϭϱ ϭϱ ϭ ϬϬ Ϭ ϵϯ Ϭ ϴϱ ϭϯ ϭϯ ϭϭ ϭϭ More of upside volumes Ϭ ϲϵ Company Overview BanBajio is the third-largest locally controlled bank in Mexico, with MX 193.8B in total assets as of Q The bank operates 297 branches nationwide, with presence in 28 of the 32 states and in 78 cities. It is currently ranked eighth in Mexico in terms of loans and deposits and seventh in terms of business loans. Dy ϯϰ нϭ ϰϯϭ Ϭ ϳϳ Banco del Bajio (BJI.MX) is the leader in SM and commercial lending in Bajio, one of the most dynamic areas of Mexico. The bank is set to benefit from rising interest rates, as commercial loans constitute more than 80% of its loan book. ϯθ ϯϳ Ϭϱ Ϯ ϲϯ Ϯ ϱϭ Ϯ ϯϭ Source: Corporate Website WZ/ ϭϱϭ ϰ ϲϯ ϯ ϴϱ ϯ ϱϰ >K' &ŝdžğěͿ Q :.6 ϭϳϭ K > :/K ^ /^d/dh /K Dh>d/W> /^ D y/ KͲ ^ &/ / > /^d/dhd/k d, <Ϳ ' ' / d, </' ^ dkz ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ Ϭ ϳϲ ϭ Ϭϲ ϭ ϰϰ ϭ ϰϯ Ϯ Ϭϵ ϯ ϰϭ ϭϯйÿ ϯ ϬϮ ϰϰйÿ W^ Dy ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z Dy Ͳϭ ϯθ Ͳϭ ϭϯ Ͳϭ ϴϲ Ͳϯ ϰϱ Ϭ ϰϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϳй WZ d y D Z'/ й ϭϯй ϭϰй ϮϬй Ϯϭй Ϯϯй ϮϬϭϱͲϭϳ Ϯϰй ϴ ^ƚăďŝůŝƚljͿ ϭϯй Z dhz K Yh/dz й ϭϭй ϭϯй ϭϭй ϭϰй ϮϬϭϯͲϭϳ Ϯϲй ϳ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϵй ϰй ϴй Ϯϳй KDW Z d/' ^ > ^ D/>Ϳ Dy ϴ ϯϱϰ ϵ ϭϭϵ ϵ ϰϱϭ ϭϭ< ϭϯ< /s d K t <>z Ϭϳ :Ƶů ϭϰ :Ƶů Ϯϭ :Ƶů Ϯϴ :Ƶů Ϭϰ ƵŐ ϭϭ ƵŐ ϭθ ƵŐ Ϯϱ ƵŐ Ϯϵ ƵŐ d й ϮϬϭϰͲϭϲ ϭϭϱй ϭϯϵй ϭϵϭй d 'Z W, Z d/' Ϯϱ Ϯϳ Ϯϱ ϯϭ ϯϯ ϯϭ ϯϭ ϯϭ ϯϭ d y Z d ϮϬϭϰͲϭϲ ϭθй Ϯϴй Ϯϰй s' />z sk> ϬϬϬͿ ϰϱϲ ϲϯϭ ϴϰϳ ϭ ϭϲϭ ϭ ϰϯϰ ϭ ϱϲϭ ϭ ϳϭϲ ϭ ϳϴϭ ϭ ϳϲϰ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϯ ϳ Ϯ ϰ Ϯ ϳ ϰ Ϭ ϯ Ϯ Ϯ ϱ Ϯ ϲ Ϯ ϲ Ϯ ϱ Z Θ < s > Ϯ Ϯϴdž Ζϭϲ hd /^d Z d/' ϰθ ϰϳ ϰϵ /s Dy ŽŶĞ /s 'Z Zd Z > d/s ^dz 'd, ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϭ d Ϭ Ϯϭ Ϭ ϬϬͿ >W, Ϭ ϯϱ Ϭ ϯϰͿ 'ZKhW Z < Ϯϭ Ϯϰ ϮϮ ϭϲ ϵ ϭϯ ϭϳ ϭϭ ϭϯ ϵ Ϭ ϲϯ ϴ Ϭ ϱϰ ϳ >K' sk>hd ϵd ϳD ϱd ͲϭϬϬй ϰd ϯ ϰd ^ĞƉ ϭϯ ĞĐ ϭϯ &/ / >^ Ϭ ϳϲ W^ DyͿ W^ й, ' ϴ ϯϱϰ Ϯ ^ > ^ D/> DyͿ DĂƌ ϭϯ :ƵŶ ϭϯ ^ĞƉ ϭϯ ^ > ^ й, ' нϵ ϳй D Z'/ &d Z d y ĞĐ ϭϯ ϭ Ϭϲ нϯϵй ϵ ϭϭθ ϲ нϵй нϭϯ ϰй W >KtͲ,/', &h ^ Π ϮϬϭϳ t/>>/ D KΖ /> н K / DĂƌ ϭϰ :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ ϭ ϰϰ нϯϲй ϵ ϰϱϭ ϱ нϰй нϭϲ ϯй DĂƌ ϭϱ :ƵŶ ϭϱ ^ĞƉ ϭϱ ĞĐ ϭϱ ϭ ϰϯ Ͳϭй ϭϭ Ϯϭϯ ϴ нθй нϭϰ ϵй DĂƌ ϭϲ :ƵŶ ϭϲ ^ĞƉ ϭϲ ĞĐ ϭϲ Ϯ Ϭϵ нϰϳй ϭϯ Ϭϭϯ Ϭ нϯϳй DĂƌ ϭϳ Ϭ ϳϱ :ƵŶ ϭϳ Ϭ ϳϮ ϰ Ϭϴϱ Ϭ ϰ ϰϳϱ ϰ нϭϳ Ϯй нϭϵ ϳй нϯϭ Ϭй ϭϯͳϭϯ ϭϳ ^ĞƉ ϭϳ Ϭ ϳϲĞ Ϯ ϲϱϭ ϵğ ĞĐ ϭϳ Ϭ ϳϱĞ Ϯ ϳϮϱ ϬĞ DĂƌ ϭθ Ϭ ϴϬĞ нϳйğ Ϯ ϴϬϬ ϰğ ͲϯϭйĞ :ƵŶ ϭθ Ϭ ϴϱĞ нϭθйğ Ϯ ϴϳϲ ϳĞ ͲϯϲйĞ W ϭϱ ϮϬϭϳ Ɛƚ ϭϯ ϯϭ ϮϬϭϴ Ɛƚ ϭϭ ϴϵ ϱͳljƌ,ŝőś ϭϯ ϱͳljƌ >Žǁ ϭϯ ǀƐ /ŶĚ ǀŐ ŶĐ Ğů ĂũŝŽ /ĚďĐ DƚƉů :/ DyͿ tğğŭůlj ĂƐ ŽĨ dƶğ Ϯϵ ƵŐƵƐƚ ϮϬϭϳ In Q4 2017, the loan portfolio grew to MX 146B, up 14.9% y/y and 3.3% q/q, while deposits grew MX 113B up 12.7% y/y. P ratio improved to 0.83% (versus 0.88% in Q and Q4 2016), while the coverage ratio was % (versus % in Q and % in Q3 2017). Growth Drivers With a favorable loan mix and a significant inclination towards SMs (27% of total loans), BanBajio has the second-highest yield in commercial loans in the country, behind Banregio. BanBajio is located in Bajio, one of the fastest growing regions in Mexico, with about 5.5% real GDP growth over the past five years, versus an average of ~2.8% for the country. The bank has a leading 22% market share in this region in terms of commercial loans. The Company s top 20 and 50 customers represent 17% and 27%, respectively, of its total commercial loan book, second lowest among Mexican banks. ooking Forward BanBajio issued its 2018 guidance: loan growth of 12-14%, deposit growth of 12-17%, IM of %, net income of MX 4.65B-4.75B, and efficiency ratio of less than 45%. ext Catalyst: The Company s Q earnings release on pril ocal Code: MXBBJIOO Bloomberg Symbol: BBJIOO:MM ISI: MX41BB000000

40 Bnc.Del Bajio Idbc. Mtpl. MXICO BC.D BJIO IDBC. MTP. (BJI.MX) MX RIGS BUSISS: SC BCO D BJIO S ISTITUCIO D BC MUTIP IS PRIC = MXICO-BSD FICI ISTITUTIO (TH BK) GGD I TH 10 X PS BKIG SCTOR. TH BK OFFRS FICI PRODUCTS D SRVICS TO IDIVIDU CUSTOMRS, SM D MDIUM-SIZD COMPIS, CORPORTIOS D GOVRMT BODIS. ITS PRODUCTS RG ICUDS CURRT D SVIGS CCOUTS, PRSO D COMMRCI OS, MORTGG, CRDIT D DBIT U W K Y 2009 PS MX (DC.) CF/SHR MX PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI MX) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK BKS-MOY CTR 1.19B 1.19B SHRS MGMT owns X-DIV FOT MKT CP MX 47.13BI. SS MX18.51 BI CRDS, IVSTMT FUDS, SCURITIS BROKRG, ISURC POICIS, FORIG CURRCY XCHG, SIG D FCTORIG, ITRTIO TRD FICIG, S W S FIDUCIRY SRVICS, MOG OTHRS. TH BK SO OFFRS SRVICS THROUGH MOBI D ITRT PTFORM. IT OPRTS UMBR OF BRCHS CROSS MXICO. MXICO PS RTIG 98 MX39.61(OH -3%) Up 6.85% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(10 STBIITY) +26% %(10 STBIITY) +15% COMPOSIT RTIG IVT T/O DBT % %: 191%: 93% 28%: 24%: 22% TX RT : : BCKOG X '17 BK.V R&D DIV O DIV GR RT BT 0.14(0) PH 0.15(0.13) MXIPC Global Focus M MX B VOUM 20 M 10 M DC Q -46% BOW ST. PS (MX) % CHG SS(BI MX) % CHG MRGI FTR TX RTUR O QUITY T4Q % % 12.4% +10.2% % % 16.3% +12.4% % 0.93S S % 14.9% +10.8% 16.9% 17.9% 17.0% +13.8% 19.7% 20.8% +15.6% P OW-HIGH 32/45459 FUD/SHRS (000) DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Banks-Money Center SP 15 DC 15 MR 16 JU 16 SP 16 DC 16 MR 17 JU 17 FOR IFORMTIO, C OR VISIT % % 21.5% +17.1% /76027 SP % % 21.9% +18.7% MR Q % '13-18 P..'S OW OW HI ST 75/98854 DC 17 7M 5M 10X 12X 12X MR 18 TM DTGRPHS 2/2/2018

41 IDI /ŶĚŝĂďƵůůƐ,ŽƵƐŝŶŐ &ŝŷ / / &K ϮϬ dž Source: Corporate Website Indiabulls Housing Fin d/k > / / džđś / ϭϰθ/ϭϭϭϯϭ нϵϭ ϭϭ ϯϭϯϱ ϮϵϬϬ W^ ZĂŶŬ ϳϵ &ŝŷăŷđğͳ ŽŶƐƵŵĞƌ >ŽĂŶƐ / / /ŶĐ ϮϬϭϮ DŬƚ ĂƉ /Zϯϴϯ Ϭϳ ^ĂůĞƐ /Zϵϴ ϲϵ ^ŚĂƌĞƐ ϰϯϰd &ůžăƚ ϯϲϭd W^ ƵĞ ϰ Ϯϰ ϮϬϭϳĞ K, Ͳϯй D'Dd ŽǁŶƐ / / h>>^,kh^/' &/ >/D/d /^,Kh^/' &/ KDW z d, KDW zζ^ WZ/D Zz h^/ ^^ d/s/d/ ^ Z dk ZZz K h^/ ^^ K& /s ^d/' &/ Z > d d/s/d/ ^ /s ^d/' / s Z/Kh^ ^h ^/ / Z/ ^ &/ /' K& >K ^ Z /d d/s/d/ ^Ϳ & / KD t,/, D />z K^/^d^ K& &/ / > ^ Zs/ Z > d & / KD &ZKD ^ Zs/ ^ ^ >>/' K& /^hz WZK h d^ ^ >/ ^ KZWKZ d ' d Kd, Z Z > d />> Zz ^ Zs/ ^ DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϰϭ ϭϵ ϰϳ ϵϲ ϱϰ ϵϱ ϱϵ ϴϰ ϲθ ϯϯ ϭϰй ϴϮ ϲϭ Ϯϭй W^ /Z ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z /Z ϰϳ ϴϭ ϲϯ ϵϵ ϱϵ ϴϮ ϲθ ϳϮ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϯϳй ϯϰй ϯϰй ϯϱй ϮϬϭϰͲϭϲ ϭϯй ϭ ^ƚăďŝůŝƚljͿ Ϯϱй Z dhz K Yh/dz й Ϯϵй ϯϭй Ϯϳй ϮϬϭϮͲϭϲ ϭϯй ϭ ^ƚăďŝůŝƚljͿ Ϯϱй ^ > ^ й, ' Ϯϳй Ϯϲй Ϯϱй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϰϱ< ϱθ< ϳϮ< ϵϭ< /s d K t <>z :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď ϭϭ &Ğď ϭϳ &Ğď Ϯϰ DĂƌ Ϭϯ DĂƌ ϭϭ DĂƌ ϭϰ d й ϮϬϭϰͲϭϲ ϯϱϯй ϰϯϵй ϯϯϯй d 'Z W, Z d/' ϱϯ ϱϰ ϱϵ ϲϭ ϲϲ ϲϰ ϲϯ ϲθ ϳϭ d y Z d ϮϬϭϰͲϭϲ Ϯϭй Ϯϯй Ϯϱй s' />z sk> ϬϬϬͿ Ϯ ϭϵϳ Ϯ ϭϭϱ Ϯ ϭθϲ Ϯ Ϯϳϭ Ϯ Ϯϴϱ Ϯ ϬϮϲ Ϯ ϬϮϮ ϭ ϵϳϭ ϭ ϴϱϭ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd Ϭ ϳ ϭ Ϭ ϭ ϭ ϭ Ϯ ϭ ϯ ϭ ϵ ϭ ϵ ϭ ϵ Ϯ ϳ Z Θ < s > ϯ ϭϭdž Ζϭϲ hd /^d Z d/' ϯϭ ϯϯ ϱϲ ϲϯ ϲϲ ϲϭ ϲϭ ϲϭ ϲϯ /s /Z ϯϲ ϬϬ ϰ ϮйͿ /s 'Z Zdнϭϯй ϭϯͿ Z > d/s ^dz 'd, ϯϳ ϯϳ ϰθ ϱϱ ϲϱ ϲϱ ϱϯ ϲϯ ϳϮ d ϭ ϯϱ Ϯϵ ϬϬͿ >W, Ϭ Ϭϭ Ϭ ϬϭͿ 'ZKhW Z < ϭϯθ ϭϯϯ ϭϭϵ ϭϭϱ ϵϱ ϭϭϯ ϭϭϳ ϵϵ ϴϱ ϮϬϭϲ DW>Kz ^ ϱ ϰϱϯ ϭϰйͿ >K' &ŝdžğěͿ WZ/ ϮϮϬϬ ϭϵϭϭ Break out near highs on 1.9x the average daily volume Double-digit estimates Strong growth rates with earning stability ϭϳϭϭ ϭϱϭϭ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ϭϭϭϭ ϵϭϭ ϵϭϯ ϵϭ ϴϬϬ нϰϳ ϯϭ /Z нϱ ϱϯй ϳϬϬ Highest up/down volume over several weeks Rising R/S and improving IG rank ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ ϳϮ н ϯθϭ ϯϰϭ 40-Week M Indiabulls Housing Finance (IZ.I) is one of the largest private housing finance companies in India. The Company benefits from the launch of a new version of its online mortgage solution. ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ R/S near highs with best /D rating 10-Week M ϭϵϭ ϭϳϭ ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ Company Overview Indiabulls has vast experience in the field of housing finance, serving 963,143 customers with total disbursements of more than IR 1.8T. In FY 2017, it launched a new version of e-home oans, the country s first online end-to-end home mortgage solution. This has enabled the Company to benefit from economies of scale through effective technology deployment. O eil Methodology The stock recently broke out of a 14-week cup and is actionable. The Company continues to post double-digit revenue and PS growth over the past several quarters, generating a strong PS Rank of 88. Its earnings stability factor is 3 over the past three and five years, indicating a stable earnings history. s of 9M FY 2018, loan assets increased 32% y/y to IR 1.07T (versus IR 814B in 9M FY 2017). 79%of total loans were retail and the balance were corporate. Management expects a loan growth of 32-33% in FY P was at its lowest level in 21 quarters, driven by an increasing share of low-risk home loans in the mid-income segment. GP was 0.77% (0.85% in Q3 FY 2017). P was 0.31% (versus 0.36% in Q3 FY 2017). The Company s cost-to-income for 9M FY 2018 came in at 12.5% (versus 12.9% in Q2 FY 2018 and 13.3% in FY 2017). Decline in cost-to-income has accelerated due to the increasing share of disbursals from online e-home oans and technologyenabled cost effectiveness. ϵϭ ϴϬ Strong forward estimates Increasing sponsorship >/ sk>hd ϮϴD ϮϬD ϭϯd ͲϮй ϯ ϰd ^ĞƉ ϭϯ &/ / >^ W^ /ZͿ ĞĐ ϭϯ DĂƌ ϭϯ ϰϭ ϭϵ :ƵŶ ϭϯ ϭϭ ϭϱ ^ĞƉ ϭϯ ϭϭ ϯϯ ĞĐ ϭϯ ϭϭ ϴϵ DĂƌ ϭϰ ϭϯ ϱϯ W^ й, ' ^ > ^ D/> /ZͿ ^ > ^ й, ' ϰϱ ϰϭϰ ϭ ϭϯ Ϭϵϳ Ϭ ϭϰ ϳϰϭ ϱ ^, Z ^, > z &h ^ ĞĐ ϭϰ ϭϯ ϴϮ нϭϲй DĂƌ ϭϱ ϭϱ ϵϯ нϭθй :ƵŶ ϭϱ ϭϯ Ϭϱ нϳй ^ĞƉ ϭϱ ϭϰ ϭθ нϵй ĞĐ ϭϱ ϭϱ ϯθ нϭϭй DĂƌ ϭϲ ϭϳ Ϯϰ нθй :ƵŶ ϭϲ ϭϰ ϵϲ нϭϱй ^ĞƉ ϭϲ ϭϲ ϮϮ нϭϰй ĞĐ ϭϲ ϭϳ ϳϳ нϭϲй ϭϯ ϲϰϭ ϯ ϭϱ ϭϰϯ ϭ ϭϳ ϬϭϬ ϴ ϭθ ϳϳϳ ϭ ϭθ Ϯϴϵ ϲ ϭϵ ϴϱϬ ϭ ϮϬ ϳϱϬ ϴ Ϯϰ ϬϬϴ ϳ Ϯϯ ϳϭϵ ϴ Ϯϱ Ϭϵϴ Ϭ Ϯϱ ϴϱϴ ϲ нϭϯй нϯй нϭϰй нϰϯй нϯϰй нϯϭй нϯϯй нϯθй нϯϭй нϯϲй нϯϱй ͲϮϲ ϴй ϭϯϯ ϭϳϲ Ϯϱϲ Ϯϲϲ Ϯϴϲ ϯϭϳ ϯϰϰ ϯϱϳ ϱϳd ϲϭd ϲϱd ϵϲd ϵϰd ϭϭϭd ϭϯϱd ϭϯϭd ϭϯ ϮϮϯ ϲ ϳϱ ϳϱ нϲ ϭй ϭϭϰ ϱϲd ϱϱd ϱϵd ϰϵ ϱϭ ϰθ нϯ ϴй ϱϭ ϮϱD ϱϱd ϰθd ϱϭd Π ϮϬϭϳ t/>>/ D KΖ /> н K / ^ĞƉ ϭϰ ϭϯ ϵϲ нϭϰй ϭϰ ϴϲϲ ϯ W^ й ^hzwz/^ &h ^ :ƵŶ ϭϰ ϭϯ Ϯϱ нϭϭй DĂƌ ϭϳ ϭϵ ϬϰĞ нϭϭйğ :ƵŶ ϭϳ ϭθ ϲϭğ нϯϰйğ ^ĞƉ ϭϳ ϭϵ ϲϭğ нϯϭйğ ĞĐ ϭϳ ϭϵ ϮϱĞ нθйğ W ϭϯ ϮϬϭϴϮϬϭϴ Ɛƚ ϭϭ Ϭ ϱͳljƌ,ŝőś ϭϰ Ϭ ϱͳljƌ >Žǁ ϰ Ϭ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž /ŶĚŝĂďƵůůƐ,ŽƵƐŝŶŐ &ŝŷ / /Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ DĂƌĐŚ ϭϰ ϮϬϭϳ Ĩ dƶğ DĂƌĐŚ ϭϰ ϮϬϭϳ Growth Drivers The Company enjoys declining funding costs due to a borrowing profile tilted toward low-cost market borrowing as well as the bank s marginal cost-based lending. recent rating upgrade by the ICR to the highest level of should further benefit funding costs, expanding IM. Management looks for technology to drive its distribution model; by 2020, it aims to source 50% of home loans from outside its top 20 cities (currently 30%). In January 2017, Indiabulls entered a strategic partnership with Paisabazaar.com, India s leading online financial marketplace, to offer online home loans to consumers. This partnership was aimed to synergize the online home loan experience with Paisabazaar s scale and retain customers by providing quality services. ooking Forward The urban population of India consists of more than 400M people, estimated to reach about 814M by This should boost the demand for homes in the upcoming years. ext Catalyst: The Company s Q4 FY 2018 earnings on pril ocal Code: I:IBUHSGFI Bloomberg Symbol: IHF:I ISI: I148I01020

42 Indiabulls Housing Fin IDIBUS HOUSIG FI IDI (IZ.I) S FIC-COSUMR OS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC IDIBUS HOUSIG FIC IMITD IS HOUSIG FIC TH BUSISS TO PROVID FIC D TO UDRTK DIG PRIC = COMPY. TH COMPY'S PRIMRY BUSISS CTIVITIS R TO D FIC TO PRSO OR PRSOS, CO-OPRTIV SOCITY, 10 X PS CRRY O BUSISS OF IVSTIG D FIC RTD SSOCITIO OF PRSOS, BODY OF IDIVIDUS, COMPIS, CTIVITIS (IVSTIG I VRIOUS SUBSIDIRIS, FICIG OF ISTITUTIOS, FIRMS, BUIDRS, DVOPRS, COTRCTORS, OS D CRDIT CTIVITIS) D F ICOM, WHICH MIY TTS D OTHRS ITHR T ITRST OR WITHOUT D/OR WITH 380 COSISTS OF FICI SRVIC RTD F ICOM FROM OR WITHOUT Y SCURITY FOR COSTRUCTIO, RCTIO, 360 SRVICS, SIG OF ISURC PRODUCTS S ICSD BUIDIG, RPIR, RMODIG, DVOPMT, IMPROVMT, 340 CORPORT GT, D OTHR RTD CIRY SRVICS. ITS PURCHS OF HOUSS, PRTMTS, FTS, BUGOWS, ROOMS, GOGRPHIC SGMT ICUDS WITHI IDI. IT IS GGD I HUTS D TOWSHIPS, MOG OTHRS U W K Y 2009 PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT 11/1/2017 CP IR BI. SS IR BI IC IDI PS RTIG IR1320(OH -8%) 4200 Up 45.99% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(3 STBIITY) +27% %(3 STBIITY) +25% COMPOSIT RTIG IVT T/O PRIC SC DBT % %: 332%: 358% 23%: 25%: 23% TX RT : : BCKOG X '17 BK.V R&D 41(3.0%) DIV GR RT+9% (11) DIV BT 1.32(19) PH 0.10(0.06) 0IBOM Global Focus M IR % B VOUM 7M 3M DC Q -35% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX 26.6% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /48337 DC % +28.7% /50055 MR % % 31.1% /55521 JU % % 29.6% +29.4% /54711 SP % % 28.1% /58621 DC % % 29.3% +30.8% % % 28.0% % % 29.0% % % 28.1% +27.0% / / / / /94351 MR 15 JU 15 SP 15 DC 15 MR 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Finance-Consumer oans % % 28.0% +25.4% % % 26.6% /110M JU % % 27.3% +23.7% /124M SP % % 29.1% /128M DC % % 28.7% +25.4% /136M MR % % 26.7% +26.0% /136M JU 17 FOR IFORMTIO, C OR VISIT % % 28.1% +27.0% 507/144M SP % % 34.9% MR Q % '13-18 P..'S OW OW HI ST 500/126M DC K 300 K 3X 18X 16X MR 18 TM DTGRPHS 2/2/2018

43 IDI 'ƌƶś &ŝŷăŷđğ 'Zh / &K ϮϬ dž Source: Corporate Website GRUH Finance (GRU.I), a subsidiary of HDFC td, is one of the leading housing finance companies in India. With a focus on rural markets and lower ticket size loans, the Company is well positioned to benefit from the ongoing thrust on affordable housing. Gruh Finance d/k > / / džđś / ϱθϭ ϬϭϬϮϵ нϵϭ ϳϵ ϮϲϰϮ ϭϲϳϭ W^ ZĂŶŬ ϴϱ ŐƌƵŚ ĐŽŵ &ŝŷăŷđğͳ ŽŶƐƵŵĞƌ >ŽĂŶƐ DŬƚ ĂƉ /ZϭϮϴ ϴϬ ^ĂůĞƐ /Zϭϰ ϰϭ ŚŵĞĚĂďĂĚ / / ^ŚĂƌĞƐ ϯϲϰd &ůžăƚ ϭϰϵd W^ ƵĞ ϰ ϭϳ ϮϬϭϳĞ K, Ͳϰй D'Dd ŽǁŶƐ 'Zh, &/ >/D/d 'Zh,Ϳ /^ / / Ͳ ^,Kh^/' &/ KDW z d, KDW z WZKs/ ^,KD >K ^ dk / /s/ h >^ & D/>/ ^ &KZ WhZ, ^ K^dZh d/k yd ^/K ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϭ ϮϮ ϭ ϰϱ ϭ ϵϵ Ϯ ϲϯ ϯ ϰϭ ϰ ϭϭ ϰ ϵϯ ϱ ϲϯ ϲ ϳϬ ϳ ϴϭ ϭϳйÿ W^ /Z ϵ ϯϱ ϮϬйŸ ^, &>Kt ^,Z /Z ϭ Ϯϵ ϭ ϰθ Ϯ Ϯϱ Ϯ ϳϱ ϯ ϱϯ ϰ ϯϲ Ͳϯϴ ϲϯ Ͳϰϱ ϵϯ ϳ ϯϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ Ϯϭй WZ d y D Z'/ й Ϯϵй Ϯϰй ϯϭй ϯϱй ϯϯй ϯϭй Ϯϵй Ϯϴй Ϯϴй ϮϬϭϰͲϭϲ ϭϳй ϭ ^ƚăďŝůŝƚljͿ Ϯϰй Z dhz K Yh/dz й Ϯϰй Ϯϱй ϯϭй ϯϰй ϯϯй ϯϯй ϯϭй ϯϯй ϮϬϭϮͲϭϲ ϭθй Ϯ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϯϵй ϰϲй ϱй ϭϲй ϰϯй Ϯϳй ϯϭй Ϯϱй ϮϬй KDW Z d/' ^ > ^ D/>Ϳ /Z Ϯ Ϭϭϴ Ϯ ϵϰϭ ϯ ϬϴϮ ϯ ϱϵϭ ϱ Ϭϴϰ ϲ ϰθϯ ϴ ϰϱϳ ϭϭ< ϭϯ< /s d K t <>z ĞĐ Ϭϵ ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϭ d й ϮϬϭϰͲϭϲ ϴϯϮй ϵϯϭй ϭ<й d 'Z W, Z d/' ϱϭ ϱϰ ϱϱ ϱϭ ϱϲ ϲϯ ϱϵ ϱϵ ϱϵ d y Z d ϮϬϭϰͲϭϲ Ϯϴй ϯϯй ϯϯй s' />z sk> ϬϬϬͿ ϯϯθ ϯϭϲ ϯϭϱ Ϯϳϳ ϭϵϵ ϯϰϭ ϯϭϭ ϮϵϮ Ϯϳϵ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϰ ϭ ϯ ϭ ϰ ϭ ϭ Ϭ ϳ Ϯ ϳ Ϯ ϲ ϯ Ϯ ϰ ϲ Z Θ < s > ϭϰ ϲϭdž Ζϭϲ hd /^d Z d/' Ͳϭϰ ͲϭϬ Ͳϯ Ͳϴ ϲ ϵ ϮϬ Ϯϲ ϯϯ /s /Z Ϯ ϯϭ Ϭ ϳйͿ /s 'Z ZdнϮϭй ϴͿ Z > d/s ^dz 'd, ϰϵ ϱθ ϲϰ ϲϭ ϱϵ ϲϭ ϲϱ ϲϯ ϳϬ d Ϭ ϴϭ ϭϱ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϰͿ 'ZKhW Z < ϭϭϱ ϭϭϵ ϭϭθ ϭϱϯ ϭϯϳ ϭϯϭ ϭϯθ ϭϯϯ ϭϯϳ ϮϬϭϲ DW>Kz ^ ϲϰϭ ϭϭйͿ >K' &ŝdžğěͿ Minimal overhead supply WZ/ ϲϭϭ Break out on 1.8x the average daily volume ϱϭϭ ϰϲϭ Increased estimates ϰϯϭ ϯθϭ ϯϱϯ ϵϭ ϯϰϭ Good growth rates, stable earnings нϭϲ ϭϭ ϯϭϭ /Z нϰ ϳϳй ϮϲϬ ϮϰϬ ϮϮϬ ϭϵϭ High up/down volume, improving /D and R/S ratings ϭϳϭ ϭϱϭ ϳϬ н 40-Week M 10-Week M ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϭ ϴϬ Company Overview GRU.I primarily focuses on providing home loans to individuals and families for purchase and construction. The Company has historically provided housing finance to salaried individual customers and has recently expanded its client base to include self-employed professionals and builders. O eil Methodology GRU.I is extended from an ideal entry. Given its strong fundamentals, add to positions when the stock pulls back to its 50-DM. high RS Rating of 82, an Up/Down volume ratio of 3.5, and an /D Rating of + indicate price outperformance and institutional support. Institutional sponsorship increased 25% y/y to 87 as of December Historically, the Company has had high revenue and PS growth of 22% and 18% ( ) with stable margins (pretax margins of 30%). Its earnings stability rating is 2 for and et income rose 28.3% y/y to IR 822M, while diluted PS was up 27.27% y/y. Q3 FY 2018 revenue increased 12.5% y/y to IR 4.28B. Q3 FY 2018 II increased 17.1% y/y to IR 1.77B. Q3 FY 2018 gross P came in at 0.73%, compared with 0.67% in Q2 FY More notably, net P were fully provisioned for and came in at 0%, down from 0.07% in Q2 FY et P has been below 0.30% over the last 10 quarters. Growth Drivers s of Q3 FY 2018, total loans were up 18% y/y to IR 148B. 9M CY 2017 loan disbursements rose 31% y/y to IR 374.8B. Robust loan growth and best-in-class asset quality coupled with a positive outlook for the Indian housing market will drive the Company going forward. Rising R/S line near highs ϳϬ ϲϭ ϱϭ ϰϲ ϰϯ ϯθ ϯϰ ϯϭ Solid PS and revenue growth Ϯϲ Ϯϰ ϮϮ >/ sk>hd ϵd Increasing sponsorship ϳD ϱd ϯd ͲϮϯй ϲϳϭ ϲ< ϭ&/ / >^ ĞĐ ϭϭ DĂƌ ϭϯ ϵ W^ /ZͿ Ϭ ϲϲ ϭ ϱθ й W^ й, ' нϯϯй нϯϯй ϵ^ > ^ D/> /ZͿ ϭ ϯϭϵ ϰ ϭ ϲϱϳ ϯ :ƵŶ ϭϯ Ϭ ϳϱ ^ĞƉ ϭϯ Ϭ ϳϳ ĞĐ ϭϯ Ϭ ϴϭ DĂƌ ϭϯ ϭ ϳϳ :ƵŶ ϭϯ Ϭ ϵϱ ^ĞƉ ϭϯ Ϭ ϵϲ ĞĐ ϭϯ Ϭ ϵθ DĂƌ ϭϰ Ϯ Ϭϱ :ƵŶ ϭϰ ϭ ϭϲ ^ĞƉ ϭϰ ϭ ϭϵ ĞĐ ϭϰ ϭ Ϯϯ DĂƌ ϭϱ Ϯ Ϭϰ :ƵŶ ϭϱ ϭ ϯθ ^ĞƉ ϭϱ ϭ ϰϯ ĞĐ ϭϱ ϭ ϰθ DĂƌ ϭϲ Ϯ ϰϭ :ƵŶ ϭϲ ϭ ϲϲ ^ĞƉ ϭϲ ϭ ϳϬ ĞĐ ϭϲ ϭ ϳϲ DĂƌ ϭϳ Ϯ ϰϱğ нϯϵй ϭ ϰϳϳ ϳ нϯϭй ϭ ϱϲϵ ϴ нϯϯй ϭ ϲϲϰ Ϯ нϭϯй ϭ ϳϳϬ Ϯ нϯϳй ϭ ϴϯϭ ϵ нϯϱй Ϯ ϭϭϱ Ϭ нϯϭй Ϯ ϭϳϯ ϵ нϭϲй Ϯ ϱϰϰ Ϯ нϯϯй Ϯ ϰϭϲ ϭ нϯϰй Ϯ ϱϳϳ ϯ нϯϲй Ϯ ϳϭϭ ϭ Ϭй Ϯ ϴϵϴ ϲ нϭϵй Ϯ ϵϰϯ ϵ нϭϵй ϯ ϭϭθ ϭ нϯϭй ϯ Ϯϯϱ ϱ нϭθй ϯ ϰϱϲ ϱ нϯϭй ϯ ϰϲϯ ϰ нϯϭй ϯ ϲϳϰ ϯ нϭϵй ϯ ϴϭϬ Ϯ нϯйğ ϭ ϴϴϬ ϬĞ й^ > ^ й, ' нϰϭй нϰϭй W^ й ^hzwz/^ ϱ&h ^ ϭϱ ϭϲ нϯϭй нϯθй нϯϲй нϳй нϯϰй нϯϭй нϭϵй нϭθй нϭθй нϭθй ͲϰϲйĞ ϯϵ ϯϱ ϰϯ ϱϯ нϯϯй Ͳϰ ϴй ϱϭ нϭϵй ϯϯ нϯϱй нϭ ϱй ϰϲ нϯϭй Ϯϲ нϯϯй нϭϭ Ϭй ϰϰ нϭϰй Ϯϭ нϰϰй нϯϭ ϯй ϰϯ нϯϯй ϭϵ нϯϰй Ͳϰϯ ϴй ϯϲ ϱϯ ϱϰ ϱϱ ϱϲ ϲϭ ϲθ Ϭ^, Z ^, > z &h ^ ϯϭd ϮϰD ϮϲD ϯϰd ϯϯd ϯϰd ϯϰd ϯϱd ϯϯd ϰϭd ϰϭd ϰϯd ϰϯd ϯϭd ϯϯd ϯϱd ϯϲd ϯϵd ϰϭd ϰϯd ϱϱd Π ϮϬϭϳ t/>>/ D KΖ /> н K / W ϰϱ ϮϬϭϴ Ɛƚ ϯθ Ϭ ϱͳljƌ,ŝőś ϱϲ Ϭ ϱͳljƌ >Žǁ ϭϲ Ϭ ǀƐ /ŶĚ ǀŐ ϯ ϰdž 'ƌƶś &ŝŷăŷđğ 'Zh /Ϳ tğğŭůlj ĂƐ ŽĨ tğě &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϳ &ĞďƌƵĂƌLJ Ϭϭ ϮϬϭϳ Mortgage penetration remains low compared with advanced and emerging economies. The Indian mortgage industry is expected to grow five-fold in the next 10 years. growing urban population should boost demand for homes. GRU.I s cost of funds is comparable with that of its larger peers as it has been a prime beneficiary of low-cost ational Housing Bank loans due to its major disbursement exposure in underpenetrated lower-income rural and semi-urban areas. This has resulted in higher interest spreads than its peers. Over the years, GRUH has successfully reduced its borrowing costs. ooking Forward The Indian government has effectively lowered interest rates on home loans by increasing tax exemption limits on loan repayments. It has also planned to launch 2M affordable housing units by FY 2018, benefiting housing finance companies. xpectations call for PS growth of 19% (+IR 9.68) and 18% (+IR 11.47) in FY 2018 and FY 2019, respectively. ext Catalyst: The Company s Q4 FY 2018 earnings release on pril ocal Code: I:GRUH Bloomberg Symbol: GRHF:I ISI: I580B01029

44 Gruh Finance IDI GRUH FIC (GRU.I) S FIC-COSUMR OS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC GRUH FIC IMITD (GRUH) IS IDI-BSD HOUSIG PROPRTIS. GRUH OFFRS DVOPR OS O SCTIV BSIS PRIC = FIC COMPY. TH COMPY PROVIDS HOM OS TO. GRUH OFFRS OS O U, MOTHY D DIY RST BSIS. 10 X PS IDIVIDUS, D FMIIS FOR PURCHS, COSTRUCTIO D TH COMPY SO OFFRS OS WITH CRDIT GURT COVR XTSIO. TH COMPY OPRTS THROUGH HOUSIG FIC WHRI TH OS R GURTD BY TH CRDIT RISK BUSISS SGMT. GRUH SO PROVIDS OS FOR RPIR D GURT FUD TRUST (CRGFT). GRUH SO OFFRS HOM OS 190 ROVTIO OF HOUSS D HOM OS TO FMIIS I TH UDR TH RUR HOUSIG FUD (RHF) SCHM OF TIO 180 SF-MPOYD CTGORY. GRUH OFFRS OS FOR PURCHS D HOUSIG BK (HB). TH COMPY'S HOM O PRODUCTS ICUD 170 COSTRUCTIO OF O- RSIDTI PROPRTIS (RP) D OFFRS GRUH SURKSH, GRUH SUVIDH, GRUH SJVT D GRUH SMRUDDHI 160 MORTGG OS GIST XISTIG RSIDTI D COMMRCI U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR BI. SS IR16.33 BI IDI PS RTIG 88IR567.80(OH -20%) Up 60.44% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(2 STBIITY) +17% %(2 STBIITY) +22% , COMPOSIT RTIG IVT T/O DBT % %: 999%: 943% %: 33%: 33% TX RT : : BCKOG X '17 BK.V R&D 2.8(0.5%) DIV GR RT+20% (7) DIV BT 0.26(0) PH 0.20(0.08) IBOM % Global Focus M IR /1 VOUM 5M 3M 2M 800 K 400 K PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 16.2% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /32002 DC % % 28.9% +32.2% /40319 MR % % 17.3% /40252 JU % % 16.7% +30.6% /42938 SP % % 16.5% /42382 DC % % 25.6% +30.9% % % 17.1% /30354 MR 15 50/32354 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Finance-Consumer oans % % 16.6% +29.1% /35170 SP % % 16.6% /36441 DC % % 25.4% +31.4% /38776 MR % % 17.4% /40024 JU % % 16.9% +29.6% /41782 SP % % 16.8% /55944 DC % % 28.1% +30.4% /57220 MR % % 18.1% /58288 JU 17 FOR IFORMTIO, C OR VISIT % % 18.8% +30.5% /60741 SP % % 19.2% '13-18 P..'S OW OW HI ST 85/59643 DC 17 21X 56X 62X MR 18 TM DTGRPHS 2/2/2018

45 THID DƵĂŶŐƚŚĂŝ >ĞĂƐŝŶŐ Dhd, d, &K ϮϬ dž Source: Corporate Website нϲϲ Ϯϴ ϴϬϭϬϯϯ W^ ZĂŶŬ ϵθ Muangthai easing d, /> džđś d,ϲϭϲθϭϭϭϭϭϯ ŵƶăŷőƚśăŝůğăɛŝŷő ĐŽ ƚś &ŝŷăŷđğͳ ŽŶƐƵŵĞƌ >ŽĂŶƐ DŬƚ ĂƉ d, ϲϭ ϰθ ^ĂůĞƐ d, ϯ ϴϰ ĂŶŐŬŽŬ d, /> ^ŚĂƌĞƐ Ϯ ϭϯϭ &ůžăƚ ϲϭϱd W^ ƵĞ Ϯ ϮϬ ϮϬϭϳĞ K, Ͳϰй D'Dd ŽǁŶƐ Dh 'd, / > ^/' W > Dh 'd, / > ^/' Wh >/ KDW z >/D/d /^ d, /> Ͳ ^ KDW z ' ' / > /' h^/ ^^ /d^ h^/ ^^ /^ Z > d dk d, WZK ^^ K& >K ^ ^ hz ' /^d s,/ > Z '/^dz d/k^ W Z^K > >K ^ t/d,khd K>> d Z > t,/, / >h ^ DKdKZ s,/ > ^ >K ^ Z >K ^ hdk >K ^ &KZ 'Z/ h>dhz h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ Ϭ ϭϯ Ϭ Ϯϳ Ϭ Ϯϯ Ϭ ϯϯ Ϭ ϯϵ W^ d, Ϭ ϲϲ ϲϵйÿ Ϭ ϵϯ ϯϵйÿ ^, &>Kt ^,Z d, Ϭ ϭϯ Ϭ ϰϭ Ϭ Ϯϴ Ϭ ϯϱ Ϭ ϰϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й Ϯϭй ϯϯй Ϯϴй ϯϳй ϰϭй ϮϬϭϰͲϭϲ ϯϭй ϳ ^ƚăďŝůŝƚljͿ ϯϲй Z dhz K Yh/dz й ϮϬй ϮϬй ϭϲй ϭϱй ϮϬϭϮͲϭϲ Ϯϲй ϭϯ ^ƚăďŝůŝƚljͿ ϯϱй ^ > ^ й, ' ϴϴй Ϯϰй ϮϬй ϯθй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ d, ϲϲϯ ϭ Ϯϰϲ ϭ ϱϰθ ϭ ϴϱϲ Ϯ ϱϱϵ /s d K t <>z ĞĐ Ϭϵ ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϳ :ĂŶ ϯϭ d й ϮϬϭϯͲϭϱ ϯϯй ϳй ϲϭй d 'Z W, Z d/' ϳϵ ϴϬ ϳϵ ϳϬ ϳϱ ϳϭ ϳϲ ϳϴ ϳϴ d y Z d ϮϬϭϯͲϭϱ ϮϬй ϮϬй ϮϬй s' />z sk> ϬϬϬͿ ϭϲ ϳϭϱ ϭϳ ϲϭϱ ϭθ ϭϯϯ ϭθ ϴϳϳ ϭϵ ϵϭϯ ϮϬ ϬϱϮ ϮϬ ϳϱϯ ϭϱ ϭϵϭ ϭϱ Ϯϭϴ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd ϯ ϰ ϯ ϰ ϯ Ϭ Ϯ ϲ Ϯ ϴ Ϯ ϲ Ϯ ϱ ϭ ϴ ϭ ϴ Z Θ < s > ϭϭ ϴϴdž Ζϭϱ hd /^d Z d/' ϰϭ ϰϳ ϰθ Ϯϭ ϯθ ϭθ ϯϯ ϰϯ ϰϯ /s d, Ϭ ϮϬ Ϭ ϳйͿ /s 'Z Zd Z > d/s ^dz 'd, ϴϵ ϵϭ ϴϳ ϴϮ ϴϱ ϴϭ ϴϱ ϵϭ ϵϭ d ϭ ϬϬ ϭϯ ϬϬͿ >W, Ϭ Ϭϴ Ϭ ϬϰͿ 'ZKhW Z < ϲ ϲ ϳ ϯϯ ϭϭ ϭϯ ϭϰ ϭϰ ϭϯ >K' &ŝdžğěͿ WZ/ ϵϭ ϴϬ ϳϬ Minimal overhead supply ϲϭ ew high on 1.7x the average daily volume Increased estimates ϱϭ ϰϲ ϰϯ ϯθ ϯϰ Good growth rates; stable earnings ϯϭ Ϯϵ ϬϬ d, Ϯϲ Ϭ ϬϬϬ Ϭ ϬϬй Ϯϰ ϮϮ Great PS rank ϭϵ ϵϭ Ͳ ϭϳ ϭϱ ϭϯ ϭϯ ϭϭ 40-Week M ϭϭ Muangthai easing (MUTH) is one of the leading companies engaged in lending. Its growth is driven by a huge potential from the under-penetrated nanofinance market and new branch openings. ϵ Rising R/S line with good R/S and /D rating 10-Week M ϴ ϳ ϲ ϱ ϰ ϲ ϰ Ϯ ϯ ϴ Company Overview The Company s operations include: secured loans against all types of used vehicle titles, home titles, and land titles, and unsecured personal loans, such as nano-finance. Q loans receivable by segment: motor cycle, 39%; car, 33%; land, 14%; personal, 7%; tractor, 5%; nano, 2%. ϯ ϰ ϯ >/ sk>hd Solid PS and revenue growth ϭ ϴ ϭ ϰ ϭ ϲϭϭd нθϯй Ϯϱ ϯd ^ĞƉ ϭϭ ĞĐ ϭϭ &/ / >^ Ϭ ϭϯ W^ d, Ϳ DĂƌ ϭϯ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ Ϭ Ϯϳ DĂƌ ϭϯ Ϭ Ϭϱ :ƵŶ ϭϯ Ϭ Ϭϰ ^ĞƉ ϭϯ Ϭ Ϭϳ ĞĐ ϭϯ Ϭ Ϭϴ DĂƌ ϭϰ Ϭ Ϭϵ :ƵŶ ϭϰ Ϭ Ϭϳ ^ĞƉ ϭϰ Ϭ Ϭϵ ĞĐ ϭϰ Ϭ Ϭϴ DĂƌ ϭϱ Ϭ Ϭϵ :ƵŶ ϭϱ Ϭ Ϭϵ ^ĞƉ ϭϱ Ϭ ϭϭ ĞĐ ϭϱ Ϭ ϭϭ DĂƌ ϭϲ Ϭ ϭϯ :ƵŶ ϭϲ Ϭ ϭϰ ^ĞƉ ϭϲ Ϭ ϭϵ нθϭй нϳϱй нϯϵй Ϭй Ϭй нϯϵй нϭϭй нϯθй нϰϰй нϱϲй нϵϭй ϰϯϲ ϱ нϯϭй ϰϰϲ ϭ нϭϵй ϰϳϱ ϱ нϭθй ϱϭθ Ϭ нϯϯй ϳϲϴ Ϭ нϱϭй ϴϲϱ ϴ нϲϯй ϭ ϬϬϯ ϭ нϳϯй ϭ ϮϬϭ ϰ нϳθй ĞĐ ϭϲ W ϱϭ O eil Methodology Shares recently broke out of a flat base spanning nine weeks and are currently trading above 21- and 50-DM support. We expect the stock to continue its strong momentum on the back of better-than-expected Q results. The Company s three- and five-year earnings growth stands at 44% and 31%, respectively, generating top PS Rank of 99. Consensus estimates have PS growing 61% and 40%, y/y, in 2017 and 2018, respectively. In Q3 2017, the Company reported revenue and net profit growth of 64% and 62%, y/y, respectively, mainly driven by an increased number of branches (to 2,294 from 1,515 in Q3 2016) and 45.4% growth in new loan lending. xpanding pretax margin led to accelerating RO, indicating strong profitability. Fund ownership increased 61% y/y to 119 in September sset quality remains strong, as P came in at 1.17% (versus 1.18% in Q and 1.09% in Q1 2017). Management s P ratio target for 2017 is below 1.5%. In July, The Bank of Thailand tightened its credit policies by lowering credit lines for credit cards and personal loans to not more than 1.5x monthly salaries (from 5x currently for income earners) of less than THB 30K per month. This regulatory change will be a tailwind for loan growth as it will force the salaried class to seek additional sources of funds to support their personal consumption. The Company has cross-selling opportunities in its lending business, backed by a large customer database and countrywide branch network, which would act as a catalyst for growth in the coming quarters. Growth Drivers The Company observed robust loan growth of 58% y/y and 10% q/q in Q3 2017, with the primary loan growth driver being new products, such as cars and agricultural land products. ooking Forward ccording to the World Bank, Thailand s economy is gaining momentum. Growth forecasts for 2017 are at 3.5%. ext Catalyst The Company s Q earnings on February 16, нϭϭθй W^ й, ' ϲϲϯ ϵ ^ > ^ D/> d, Ϳ ϭ Ϯϰϱ ϲ нθθй ^ > ^ й, ' ϯϱϯ ϯ ϯϳϱ ϳ ϰϭϯ ϱ ϰϭϲ ϳ ϱϯϯ ϭ нϯϱй ϱθϯ ϴ нϯϭй ϲϳϱ ϭ нϰϯй нϭϱ ϰй Ͳϴϭ ϴй нϭ Ϭй ϭϭ ϭϳ Ϯϲ Ϯϵ ϱϲ ϵ ϭϰϲ ϬϬϬ ϭϯd ϯϵd ϱθd ϵϲd W^ й ^hzwz/^ &h ^ ^, Z ^, > z &h ^ Π ϮϬϭϳ t/>>/ D KΖ /> н K / -42- ϮϬϭϳ Ɛƚ ϯϯ Ϭ ϱͳljƌ,ŝőś ϲϯ Ϭ ϱͳljƌ >Žǁ Ϯϲ Ϭ ǀƐ /ŶĚ ǀŐ ϯ ϴdž ϴϬ ϳϴ ϳϳ ϵθd ϳϮD ϳϳD DƵĂŶŐƚŚĂŝ >ĞĂƐŝŶŐ Dhd, d,Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ :ĂŶƵĂƌLJ ϯϭ ϮϬϭϳ Ĩ DŽŶ :ĂŶƵĂƌLJ ϯϭ ϮϬϭϳ ocal Code: TH:MTS Bloomberg Symbol: MTS:TB ISI: TH

46 Muangthai easing THID MUGTHI SIG BKK (MUTH.TH) FIC-COSUMR OS 2.12B M SHRS RIGS BUSISS: MGMT owns SC MUGTHI SIG PUBIC COMPY IMITD IS THID-BSD GRICUTUR. ITS SUBSIDIRY COMPRISS MUGTHI SIG PRIC = COMPY GGD I DIG BUSISS. ITS BUSISS IS RTD ISURC BROKR COMPY IMITD, PRICIPY GGD I 10 X PS TO TH PROCSS OF OS SCURD GIST VHIC ISURC BROKRG. RGISTRTIOS D PRSO OS WITHOUT COTR, WHICH ICUDS MOTOR VHICS OS, CR OS D UTO OS FOR U W K Y 2008 PS THB (DC.) CF/SHR THB PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI THB) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP THB 88.51BI. SS THB6.70 BI THID PS RTIG 99 THB41.75(OH -2%) Up 43.97% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(12 STBIITY) +59% %(18 STBIITY) +41% COMPOSIT RTIG IVT T/O DBT % %: 60%: 69% %: 20%: 19% TX RT : : BCKOG X '16 BK.V R&D 0.1(0.2%) DIV GR RT DIV 0.08(0.05) BT 1.38(9) PH PRIC SC BGKST % Global Focus M THB B VOUM 400 M 80 M SP Q -47% BOW ST. PS (THB) 0.08 % CHG SS(BI THB) % CHG MRGI FTR TX RTUR O QUITY T4Q 30.5% +20.0% % % 33.0% % % 26.4% % % 29.2% P OW-HIGH FUD/SHRS (000) DC 13 MR 14 JU 14 SP % % 28.9% +15.4% /9146 DC % % 34.0% +15.8% % % 31.5% +18.3% /12207 MR 15 26/39062 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Finance-Consumer oans % % 32.6% +19.6% /58169 SP % % 31.3% +15.3% /93296 DC % % 32.3% +16.4% /95459 MR % % 29.9% +18.9% /72201 JU % % 33.4% +21.0% /73755 SP % % 34.5% +23.7% /106M DC % % 34.3% +26.1% /111M MR % % 32.4% +29.7% /112M JU 17 FOR IFORMTIO, C OR VISIT % % 33.1% +31.0% DC Q % '13-18 P..'S OW OW HI ST 146/124M SP M DC 17 20X 39X 62X MR 18 TM DTGRPHS 2/2/2018

47 IDI ĞǁĂŶ,ŽƵƐŝŶŐ &ŝŷăŷđğ t, / &K ϮϬ dž Source: Corporate Website Dewan Housing Finance d/k > / / džđś / ϮϬϮ ϬϭϬϭϮ нϵϭ ϮϮ ϳϭϱϴ ϯϯϯϯ W^ ZĂŶŬ ϳϰ ĚŚŇ ĐŽŵ &ŝŷăŷđğͳ ŽŶƐƵŵĞƌ >ŽĂŶƐ DƵŵďĂŝ / / DŬƚ ĂƉ /ZϭϬϳ ϰθ ^ĂůĞƐ /Zϳϴ ϱϯ ^ŚĂƌĞƐ ϯϭϯd &ůžăƚ ϭϵϳd W^ ƵĞ ϱ ϭ ϮϬϭϳĞ K, Ϭй D'Dd ŽǁŶƐ t,kh^/' &/ KZWKZ d/k >/D/d /^ WK^/dͲd </',Kh^/' &/ KDW z d, KDW z &K h^ ^ K WZKs/ /' &/ /' WZK h d^ dk d, >Kt Z D/ > Ͳ/ KD ^ 'D d^ / / / WZ/D Z/>z / d/ Z // d/ Z /// /d/ ^ dkt^ DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϳ ϰθ ϳ ϴϴ ϭϭ ϭθ ϭϲ ϰϭ ϭϱ ϯϭ ϭϵ Ϯϰ ϮϬ ϲϭ Ϯϯ ϵϭ Ϯϱ ϲϵ ϯϭ ϭϭ Ϯϭй ϯθ ϬϬ ϮϮй W^ /Z ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z /Z ϱ ϯϳ ϳ ϯϯ ϵ Ϯϭ ϭϲ ϯϯ ϭϲ ϲϲ ϮϬ Ϭϱ Ϯϭ ϱθ Ϯϰ ϴϵ ϯϰ ϲϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯϯй WZ d y D Z'/ й ϮϬй ϭθй ϮϬй ϮϮй ϭϱй ϭϱй ϭϱй ϭϲй ϭϰй ϮϬϭϰͲϭϲ ϭϯй Ϯ ^ƚăďŝůŝƚljͿ Ϯϲй Z dhz K Yh/dz й Ϯϭй ϮϬй ϮϮй Ϯϳй ϭθй ϭϳй ϭϲй ϭϱй ϭϱй ϮϬϭϮͲϭϲ ϭϯй ϰ ^ƚăďŝůŝƚljͿ ^ > ^ й, ' ϱϲй ϯϯй ϰϯй ϭϭϯй ϱϯй Ϯϵй ϮϬй ϮϬй ϯϭй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϱ ϱϲθ ϳ ϯϰϱ ϭϭ< Ϯϭ< ϯϯ< ϰϭ< ϱϭ< ϲϭ< ϳϵ< /s d K t <>z :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď ϭϭ &Ğď ϭϳ &Ğď Ϯϰ DĂƌ Ϭϯ DĂƌ ϭϭ DĂƌ ϭϰ d й ϮϬϭϰͲϭϲ ϵϭϯй ϳϵϱй ϴϯϳй d 'Z W, Z d/' ϱθ ϱϵ ϲϰ ϲϱ ϳϬ ϲϳ ϲθ ϳϭ ϳϮ d y Z d ϮϬϭϰͲϭϲ Ϯϴй ϯϰй ϯϰй s' />z sk> ϬϬϬͿ Ϯ ϴϵϭ Ϯ ϲϯϭ Ϯ ϲϭθ Ϯ ϰϳϰ Ϯ ϲϯϱ Ϯ ϳϮϱ Ϯ ϳϱϰ Ϯ ϳϮϴ Ϯ ϳϳϳ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ Ϭ ϭ ϱ ϭ ϴ ϭ ϲ ϭ ϳ ϭ ϵ ϭ ϵ ϭ ϴ ϭ ϵ Z Θ < s > ϭ ϳϲdž Ζϭϲ hd /^d Z d/' ϴ ϭϳ Ϯϰ Ϯϴ ϯϱ ϰϭ ϰϯ ϰϯ ϰϲ /s /Z ϲ ϬϬ ϭ ϴйͿ /s 'Z Zdнϯϭй ϮϱͿ Z > d/s ^dz 'd, ϲϭ ϲϳ ϳϭ ϳϳ ϴϱ ϴϲ ϴϭ ϳϵ ϴϰ d Ϯ ϭϰ ϱϭ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϯͿ 'ZKhW Z < ϭϯθ ϭϯϯ ϭϭϵ ϭϭϱ ϵϱ ϭϭϯ ϭϭϳ ϵϵ ϴϱ ϮϬϭϲ DW>Kz ^ Ϯ ϲϯϱ ϭϭйͿ >K' &ŝdžğěͿ WZ/ Strong estimates ϳϬϬ 52-week highs Break out to new highs on 1.6x the average daily volume ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ ϯθϭ Good growth rates; stable earnings ϯϰϭ ϯϰϯ Ϯϱ нϭϳ ϳϱ ϯϭϭ /Z нϱ ϰϱй ϮϲϬ ϮϰϬ ϮϮϬ Improving ratings with consistent up/down volume ϭϵϭ ϭϳϭ ϭϱϭ ϴϰ Dewan Housing Finance td (DHF) is India s thirdlargest private housing finance company by UM. The Company is well positioned to benefit from the growing demand for affordable housing. ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ 40-Week M ϵϭ ϴϬ ϳϬ R/S at all time with good /D rating 10-Week M ϲϭ ϱϭ ϰϲ ϰϯ Company Overview DHF holds a market share of ~5% in the Indian housing finance industry, and its UM stood at IR B as of September 30. The Company has a presence in 351 locations, with a significant penetration in Tier 2 and Tier 3 cities. The Company has an international presence through representative offices in ondon and Dubai. DHF s loan portfolio is well diversified as of Q2 FY 2018: housing loans, ~63.7%; P, 17.8%; project loans, 15.1%; others, 3.3%. ϯθ ϯϰ ϯϭ Ϯϲ Ϯϰ >/ sk>hd ϮϳD ϮϭD ϭϱd Ͳϭϵй ϵd ϰ ϯd ϭ&/ / >^ ĞĐ ϭϭ W^ /ZͿ W^ й, ' DĂƌ ϭϯ ϭϱ ϯϭ Ͳϳй :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ^ > ^ D/> /ZͿϯϮ ϭϲϯ ϲ ^ > ^ й, ' нϱϯй W^ й ^hzwz/^ Ϭ&h ^ Ϯϴ ϯϯ Ϭ^, Z ^, > z &h ^ ϭϯd ϭϰd :ƵŶ ϭϯ ϰ ϲϵ ^ĞƉ ϭϯ ϱ Ϭϰ ĞĐ ϭϯ ϱ ϰϭ ϰϭ ϯϳϱ ϯ ϭϭ Ϯϲϲ ϰ ϭϭ ϲϲθ Ϯ ϭϯ ϬϭϬ ϭ ͲϮϴ Ϯй Ͳϰϵ Ϯй Ͳϰϳ ϵй ϯϯ Ϯϱ ϭϭd ϳ ϯϱϭ ϲϯθ Ϯϳ ϭϰd DĂƌ ϭϰ ϱ ϰϵ ϭϯ ϳϭϭ Ϭ нϯϵй ϯϱ ϭϲd ϯϰ ϭϯd Π ϮϬϭϳ t/>>/ D KΖ /> н K / O eil Methodology The stock is constructively trading above its 50- and 200-DM. fter its earnings release on October 16, the stock rose ~6% on above-average volume. Currently, the stock seems to be extended from an ideal entry point. DHF has a high PS Rank of 98, as it was able to accelerate earnings growth in recent years through sustainable growth in its loan portfolio and a reduction in the cost of funds. The Company reported average PS growth of 60% from FY , compared with 32% from FY Dewan reported Q2 FY 2018 net profit of IR 2.93B (26.1% y/y). Total income rose 21% y/y to IR 26.14B, versus IR 21.61B in Q2 FY This was primarily driven by the number of loans granted, which grew 68% y/y to 142B. Disbursements rose 51% y/y to IR 99.49B. IM remained flat q/q at 3.05% and the bank reported gross non-performing assets of 0.96% (versus 0.97% in Q1 FY 2018). DĂƌ ϭϯ ϭϵ Ϯϰ нϯϲй ϯϵ ϭϰd ϯϭ ϭϯd Ϯϴ ϭϱd :ƵŶ ϭϰ ϱ ϳϰ нϯϯй ^ĞƉ ϭϰ ϱ ϴϲ нϭϲй ĞĐ ϭϰ ϲ Ϯϭ нϭϱй DĂƌ ϭϱ ϲ Ϯϱ нϭϰй :ƵŶ ϭϱ ϱ ϵϰ нϯй ^ĞƉ ϭϱ ϲ ϭθ нϱй ĞĐ ϭϱ ϲ ϯϳ нϯй DĂƌ ϭϲ ϳ ϭϵ нϭϱй :ƵŶ ϭϲ ϳ ϲϭğ нϯθйğ ^ĞƉ ϭϲ ϭϯ ϰϭğ нϭϭϳйğ ϭϰ Ϯϱϱ ϳ ϭϰ ϱϭϯ Ϭ ϭϱ Ϯϰϲ ϱ ϭϱ ϳϲϭ ϵ ϭϲ ϱϯϯ ϰ нϯϳй нϯϰй нϭϳй ϯϭ ϭϲd ϰϲ ϮϮD ϱϭ ϮϭD ϭθ ϭϭϳ ϯ ϭθ ϴϰϯ ϳ Ϯϱ ϬϰϮ ϲ ϱ ϬϮϱ ϬĞ ϱ ϭϯϲ ϬĞ нϭϱй нϭϲй нϯϱй нϯϰй нϱϵй ͲϳϬйĞ ͲϳϮйĞ Ͳϱϭ ϳй Ͳϱϲ ϴй Ͳϯϯ ϰй ϵϱ ϯϯd ϭϭϯ ϰθd ϭϭϵ ϰϲd ĞĐ ϭϲ DĂƌ ϭϳ W ϭϯ ϮϬϭϳϮϬϭϳ Ɛƚ ϭϭ Ϭ ϱͳljƌ,ŝőś ϭϯ Ϭ ϱͳljƌ >Žǁ ϯ Ϭ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ϭϭϳ ϰϵd ϭϭϭ ϱϭd ϭϭϱ ϱϯd ϭϭϯ ϱϯd ϭϭϭ ϰϲd ĞǁĂŶ,ŽƵƐŝŶŐ &ŝŷăŷđğ t, /Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ DĂƌĐŚ ϭϰ ϮϬϭϳ Ĩ dƶğ DĂƌĐŚ ϭϰ ϮϬϭϳ Growth Drivers fter posting strong 20% growth in UM in FY 2017, growth has further accelerated to 25.1% in H1 FY Incremental demand from the Indian government s push for affordable housing should further accelerate growth. The cost of funds further eased to 8.63% in Q2 FY 2018 (down 9bps q/q), enabling the Company to report IM of more than 3% for the fifth consecutive quarter. Management is fairly confident that the current IM will be maintained going forward. The Company is well positioned to benefit from the affordable housing boom given its vast expertise in underwriting credit for the lower and middle income groups. Given the Company s cost rationalization initiatives, its cost-to-income ratio has fallen to 23.3% from 27.3% in FY Management aims to shed bps over the next two years. ooking Forward ccording to the Indian Brand quity Foundation, the Indian real estate market is expected to increase at a CGR of 15% from FY The next catalyst is the Company s Q3 FY 2018 earnings release on January 18, ocal Code: I:DHF Bloomberg Symbol: DWH:I ISI: I202B01012

48 Dewan Housing Finance DW HOUSIG FIC IDI (DWH.I) S FIC-COSUMR OS M M SHRS RIGS BUSISS: MGMT owns SC DW HOUSIG FIC CORPORTIO IMITD IS CTRS, PPROXIMTY 18 CIRCS/CUSTR OFFICS, OVR TWO PRIC = DPOSIT-TKIG HOUSIG FIC COMPY. TH COMPY FOCUSS DISBURSMT HUBS D COCTIO CTR I IDI. IT 10 X PS O PROVIDIG FICIG PRODUCTS TO TH OWR D OFFRS RG OF HOM O PRODUCTS, SUCH S HOM O, MIDD-ICOM SGMTS I IDI, PRIMRIY I TIR II D HOM XTSIO O, HOM IMPROVMT O, POT O, TIR III CITIS, D TOWS. IT OFFRS HOUSIG O D MORTGG O, SM D MDIUM TRPRISS (SM) O, 110 O-HOUSIG OS. IT OFFRS OS FOR COSTRUCTIO OR PROJCT O D ORSIDTI PROPRTY O. ITS DPOSIT PURCHS OF RSIDTI PROPRTY D OS GIST PROPRTY. PRODUCTS ICUD SHRY DPOSIT PUS-IDIVIDUS, SHRY 100 TH COMPY HS PRSC I PPROXIMTY 349 OCTIOS, DPOSIT PUS-TRUSTS & ISTITUTIOS, SWYMSIDH DPOSIT FOR ICUDIG PPROXIMTY 182 BRCHS, OVR 146 SRVIC WOM D WTH2HTH FIXD DPOSIT STIMT 2019 STIMT U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP IR BI. SS IR96.10 BI IDI PS RTIG 97IR519.45(OH -23%) Up 51.33% Since ddition RIGS GROWTH RT SS GR RT %(28 STBIITY) +27% %(29 STBIITY) +25% COMPOSIT RTIG IVT T/O PRIC SC 800 0IBOM DBT % %: 837%: 867% 34%: 34%: 15% TX RT : : BCKOG X '17 BK.V R&D 6(1.1%) DIV GR RT+19% (33) DIV BT 2.07(31) PH 0.07(0.03) % Global Focus M IR B / VOUM 20 M 7M 3M 900 K PS (IR) % 10.3% % CHG SS(BI IR) % CHG MRGI FTR TX % % 10.3% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /13889 DC /14714 MR /15886 JU % % 10.5% +15.9% /22010 SP % % 10.5% /20744 DC % % 10.3% +15.1% /31561 MR % % 10.5% % % 9.9% % % 8.4% +14.9% '13-18 P..'S 29.2% / / / / /51589 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Finance-Consumer oans % % 10.0% +15.5% /51222 SP / / /43111 DC 16 MR 17 JU 17 FOR IFORMTIO, C OR VISIT OW OW HI ST SP 17 DC 17 2X 6X 11X MR 18 TM DTGRPHS 2/2/2018

49 THID ^ƌŝ ^ĂǁĂĚ WŽǁĞƌ ^t W d, W^ Ϯϳ dž ϰ Ϭϳ ϯ ϳϬ ϯ ϯϯ Ϯ ϵϲ Ϯ ϱϵ Ϯ ϮϮ ϭ ϴϱ ϭ ϴϰ ϭ ϳϬ Srisawad Corporation d, /> džđś d,ϱϰϱϲϭϭϭϭϭϱ нϲϲ Ϯϲ ϵϯϱϱϱϱ W^ ZĂŶŬ ϵϳ ŵğğďăăŷŵğğƌžě ĐŽŵ &ŝŷăŷđğͳ ŽŶƐƵŵĞƌ >ŽĂŶƐ DŬƚ ĂƉ d, ϰθ ϯϵ ^ĂůĞƐ d, ϱ ϯϭ ŝŷěăğŷő d, /> ^ŚĂƌĞƐ ϭ Ϭϴϳ &ůžăƚ ϲϭϵd W^ ƵĞ ϱ ϭϯ ϮϬϭϳĞ IURP 3YRW Q :HHV D'Dd ŽǁŶƐ ^Z/^ t WKt Z ϭϵϳϵ Wh >/ KDW z >/D/d /^ d, /> Ͳ ^ KDW z ' ' / d, &/ / > ^ Zs/ ^ d, KDW z KW Z d ^ dtk h^/ ^^ ^ 'D d^,/z WhZ, ^ >K ^ DKZ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϭ Ϯ ϰϯ Ϭ ϵϯ Ϭ ϵϯ Ϭ ϳϯ Ϭ ϴϲ ϭ Ϯϯ ϭ ϴϰ W^ d, Ϯ ϯϭ ϮϲйŸ Ϯ ϴϰ Ϯϯйź ^, &>Kt ^,Z d, Ϭ ϬϬ ϱ ϳϳ ϵ ϲϯ ϭ ϮϮ ϭ ϬϬ ϭ ϭϭ ϭ ϰϵ Ϯ ϭϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϲθй ϰϲй Ϯϲй ϰϭй ϯθй ϰϭй ϰϰй ϰθй ϮϬϭϰͲϭϲ ϯϵй ϳ ^ƚăďŝůŝƚljͿ ϯϵй Z dhz K Yh/dz й ϭϯϰй ϴϬй ϳϯй ϲϲй ϯθй ϯϯй ϯϱй ϮϬϭϮͲϭϲ ϭϯй Ϯϭ ^ƚăďŝůŝƚljͿ ϰϵй ^ > ^ й, ' Ϭй ϭ ϯϭϯй ϭϯϳй ϰθй ϯϵй ϯϵй ϰϭй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ d, Ϭ ϯϵ ϱϱϯ ϭ ϯϭϲ ϭ ϵϯϳ Ϯ ϲθϵ ϯ ϳϯϲ ϱ Ϯϴϱ /s d K t <>z DĂƌ ϭϭ DĂƌ ϭϳ DĂƌ Ϯϰ DĂƌ ϯϭ Ɖƌ Ϭϳ Ɖƌ ϭϰ Ɖƌ Ϯϭ Ɖƌ Ϯϴ DĂLJ ϬϮ d й ϮϬϭϰͲϭϲ ϭϱй ϭϯϭй ϴϴй d 'Z W, Z d/' ϲθ ϳϯ ϳϱ ϳϯ ϳϰ ϳϰ ϳϰ ϳϰ ϳϲ d y Z d ϮϬϭϰͲϭϲ ϮϬй ϭϵй ϮϬй s' />z sk> ϬϬϬͿ ϴ ϭϱϲ ϳ ϱϱϰ ϳ ϮϬϬ ϲ ϴϲϭ ϲ ϱϵϯ ϲ ϰϯϲ ϱ Ϯϲϯ ϰ ϵϯϵ ϰ ϳϱϵ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϯ ϭ ϭ ϭ ϯ ϭ ϰ ϭ ϯ ϭ ϯ ϭ Ϭ ϭ Ϯ ϭ ϰ Z Θ < s > ϳ Ϭϯdž Ζϭϲ hd /^d Z d/' ϭϭ ϭϱ ϭϰ ϭϰ ϭϱ ϭϰ ϭθ Ϯϱ Ϯϰ /s d, Ϭ ϬϬϱϬ Ϭ ϬйͿ /s 'Z Zd Z > d/s ^dz 'd, ϱϭ ϲϰ ϳϯ ϲϯ ϲθ ϳϬ ϳϭ ϳϭ ϴϬ d ϭ ϰϭ Ϯϰ ϬϬͿ >W, ͲϬ Ϭϭ Ϭ ϬϬͿ 'ZKhW Z < ϰϯ ϱϵ ϲϭ ϲϯ ϲϵ ϳϯ ϴϳ ϴϰ ϴϯ K, Ͳϰй >K' &ŝdžğěͿ ϭϭϭ ϵϭ 6WURQJ HVWPDWHV %UHD RXW RI FRQVROGDWRQ RRG JURZWK UDWHV VWDOH HDUQQJV нϭ ϱϲй ϯϰ 6WURQJ (36 UDQ ϭ ϭϭ ϯϭ ϴϬ Ϭ ϳϬ d, нϭ ϮϱϬ ϯθ Ϭ ϵϲ Ϭ ϴϵ Ϭ ϴϭ O eil Methodology The stock is currently trading above its 100- and 200-DM. We would recommend investors accumulate it once it retakes its 50DM with good volume. The Company s five-year earnings growth of 25% and three-year earnings stability factor of 2 has generated a strong PS Rank of 98. Consensus estimates call for PS growth of 33% and 27% for 2017 and 2018, respectively. Srisawad reported Q total revenues of THB 1.81B (+29% y/y). This was primarily driven by 43.8% y/y loan growth from an increasing number of branches. et profit came in at THB 622M (+14% y/y), ~9% below street estimates. ower-thanexpected net profit was due to the booking of one-off impairment expenses (~THB 75M). xpanding pretax margin and average RO above 35% signify strong profitability. ϰϰ ϱϭ ϰϯ ϭ Ϯϲ Company Overview Srisawad operates through three subsidiaries: Fast Money, which provides hire purchase loans for new motorcycles, nonsecured personal loans, and nano-finance loans; Srisawad sset Management, which operates a debt collection business and the purchase of distressed assets; and Srisawad International, which invests in businesses in Thailand and abroad. The Company holds the second-largest loan portfolio behind gern Tid or. s of December 2014, Srisawad had the secondlargest market share, with 24% of total receivable value in the non-financial institution system. ϳϬ ϱϭ ϰϲ ϭ ϰϭ SriSrisawad Power (SWP.TH) is a leading player in the consumer finance space, offering installment loans. With a nationwide presence in Thailand, Srisawad is well-positioned to grab more opportunities than its peers. ϴϬ ϲϭ ϭ ϱϲ Source: Corporate Website WZ/ ϭϭϭ Ϯϲ Ϯϰ ϮϮ ϭϵ Ϭ ϲϯ ϭϳ 5VQJ 5 6 OQH Ϭ ϱϲ ϭϱ Ϭ ϰθ Ϭ ϰϰ Ϭ ϰϭ ϭϯ ϭϯ ϭϭ Ϭ ϯϳ ϭϭ Ϭ ϯϯ ϵ Ϭ ϯϭ ϴ Ϭ Ϯϲ ϳ Ϭ ϮϮ ϲ Ϭ ϭϵ Ϭ ϭϳ ϱ ϰ ϲ Ϭ ϭϲ ϰ Ϯ Ϭ ϭϰ ϯ ϴ >/ sk>hd ϳϬϬD 6KDUHV KHOG \ IXQGV DW DOO WPH KJKV ϱϭϭd ϯϭϭd Ͳϴϵй ϵϵϲ ϱ< ĞĐ ϭϭ DĂƌ ϭϯ &/ / >^ Ϭ ϵϯ W^ d, Ϳ :ƵŶ ϭϯ ^ĞƉ ϭϯ ͲϲϮй W^ й, ' ϱϱϯ Ϯ ^ > ^ D/> d, Ϳ нϭ ϯϭϯй ^ > ^ й, ' ĞĐ ϭϯ Ϭ ϵϯ Ϭй ϭ ϯϭϲ Ϯ нϭϯϳй W^ й ^hzwz/^ &h ^ ^, Z ^, > z &h ^ DĂƌ ϭϯ Ϭ ϮϬ ϯϵθ Ϭ :ƵŶ ϭϯ Ϭ ϭϳ ϰϲϵ ϭ ^ĞƉ ϭϯ Ϭ ϮϬ ϱϯϰ ϵ ĞĐ ϭϯ Ϭ ϭϲ DĂƌ ϭϰ Ϭ Ϯϯ :ƵŶ ϭϰ Ϭ ϭϲ ^ĞƉ ϭϰ Ϭ Ϯϭ ĞĐ ϭϰ Ϭ Ϯϱ DĂƌ ϭϱ Ϭ Ϯϲ :ƵŶ ϭϱ Ϭ Ϯϳ ^ĞƉ ϭϱ Ϭ ϯϰ ĞĐ ϭϱ Ϭ ϯϳ DĂƌ ϭϲ Ϭ ϯϵ :ƵŶ ϭϲ Ϭ ϰϭ ^ĞƉ ϭϲ Ϭ ϱϭ ĞĐ ϭϲ Ϭ ϱϱ DĂƌ ϭϳ Ϭ ϱθğ Ͳϲй ϲϰϵ ϵ нϯϵй нϱй ϲϵϲ ϴ нϯϭй нϱϲй ϳϱϯ ϭ нϰϭй нϭϯй ϴϭϰ ϵ нϯϵй нϲϵй ϴϳϲ ϵ нϯϱй нϲϯй ϵθϯ ϭ нϰϭй нϰθй ϭ ϬϳϬ ϲ нϰϯй нϱϭй ϭ ϭϭϭ ϴ нϯϲй нϰθй ϭ Ϯϱϯ Ϭ нϰϯй нϰϳй ϭ ϰϭϰ ϯ нϰϯй нϰϵй ϭ ϱϰϲ ϳ нϰϰй нϰϵйğ ϱϯϱ ϭ нϭϱй ϱθϱ ϳ нϰϳй ϱϭ ϭϰd нϵ ϯй ϱϰ ϯϯd нϯ ϱй ϳϵ ϲϭd нϯ ϳй ϭϭϯ ϲθd Ͳϴϴ Ϯй ϭϯϵ ϴϯD Ͳϴϵ ϯй ϭϱϯ ϴϵD нϯ ϳй ϭϲϲ ϭϯϯd Ϭ Ϭй ϭϳθ ϭϯϯd нϭϱ ϱй ϭϲϳ ϭϯϱd нθ ϲй ϭϲϰ ϭϯϳd ϯϯ ϰ Ϯϳϵ ϳϱϳ Π ϮϬϭϳ t/>>/ D KΖ /> н K / W Ϯϰ ϮϬϭϳ Ɛƚ ϭϵ Ϭ ϱͳljƌ,ŝőś ϰϲ Ϭ ϱͳljƌ >Žǁ ϭϯ Ϭ ǀƐ /ŶĚ ǀŐ Ϯ Ϭdž ϭϲϱ ϭϯϵd ^ƌŝ ^ĂǁĂĚ WŽǁĞƌ ^t W d,Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ DĂLJ ϬϮ ϮϬϭϳ Ĩ dƶğ DĂLJ ϬϮ ϮϬϭϳ Growth Drivers Srisawad has the largest mass-market secured consumer finance network in Thailand. Total branch count is 2,422 at the end of September 2017, versus 2,130 at the end of The Company s branch network is larger than its peers. The Company s restructuring plan is functioning smoothly and it will be transferring its collateralized lending business to Srisawad Power by the end of 2017 and will restructure itself as a holding company. Srisawad also aims to restructure to create better synergies among the companies in the group, especially synergy with Bangkok First Investment & Trust Public Company td (BFIT). It is likely that Srisawad will strengthen its risk management to bring it more in line with the standards of the Bank of Thailand, especially in terms of P classification and provisioning. ooking Forward Srisawad aims to grow its business by 30% through branch expansion, diligent credit assessment, and risk management. The Company is expected to announce Q results on February 23, ocal Code: TH:SWD Bloomberg Symbol: SWD:TB ISI: TH Y00

50 Srisawad Corporation THID SRISWD CORPORTIO BKK (SWP.TH) FIC-COSUMR OS 1.09B M SHRS RIGS BUSISS: MGMT owns X-DIV SC SRISWD CORPORTIO PC FORMRY KOW S SRISWD POWR USCURD PRSO OS FOR RTI CUSTOMRS I BGKOK D PRIC = 1979 PC. SRISWD CORPORTIO PUBIC COMPY IMITD, UPCOUTRY PROVICS, SUCH S RTCHBURI, SUPHBURI, 10 X PS FORMRY SRISWD POWR 1979 PUBIC COMPY IMITD, IS OPBURI, CHOBURI, SRBURI, YUTTHY. BSIDS, TH COMPY THID-BSD COMPY GGD I TH FICI SRVICS. IS GGD I TH PROVISIO OF O-PRFORMIG SSTS TH COMPY OPRTS TWO MJOR BUSISS SGMTS, MY MGMT, IVSTMT I OTHR COMPIS, MGMT D HIR PURCHS D O. TH COMPY OFFRS WID RG OF COSUTIG SRVICS FOR RTI CRDIT SYSTMS I OC D HIR PURCHS FICIG D SCURD OS FOR HOUSS, D, FORIG COUTRIS, S W S CRDIT S I FORIG PRSO D COMMRCI VHICS, MOTORCYCS, ITRTIO COUTRIS. BORS, GRICUTUR MCHIRY D QUIPMT, TOGTHR WITH U W K Y 2008 PS THB (DC.) CF/SHR THB PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI THB) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP THB 67.69BI. SS THB6.86 BI THID PS RTIG 98 THB62.25(OH -14%) Up 39.89% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (2 STBIITY) +41% %(21 STBIITY) +42% +1, COMPOSIT RTIG IVT T/O DBT % %: 121%: 88% %: 19%: 20% TX RT : : BCKOG X '16 BK.V R&D 0(0.0%) DIV GR RT DIV BT 0.95(3) PH 0.13(0.06) BGKST % Global Focus M THB D / / /100 VOUM 400 M 200 M 100 M 50 M SP Q -55% BOW ST. PS (THB) 0.16 % CHG SS(BI THB) % CHG MRGI FTR TX RTUR O QUITY T4Q 24.9% +69.2% % % 31.8% P OW-HIGH FUD/SHRS (000) DC 13 MR % % 27.2% /4280 JU % % 32.2% % % 35.5% +37.4% /13765 SP 14 53/32897 DC % % 34.1% +39.4% /60045 MR % % 33.2% +30.5% % % 37.1% +32.6% / / /88011 JU 15 SP 15 DC 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Finance-Consumer oans % % 37.6% +32.0% % % 37.4% +33.2% /132M MR % % 34.6% +33.6% /132M JU % % 38.7% +33.9% /122M SP % % 39.3% +34.5% /129M DC % % 40.9% +36.0% /101M MR % % 34.7% +36.1% /98441 JU 17 FOR IFORMTIO, C OR VISIT % % 34.3% +34.3% DC Q % '13-18 P..'S OW OW HI ST 159/109M SP M 10 M DC 17 12X 30X 46X MR 18 TM DTGRPHS 2/2/2018

51 SOUTH FRIC dƌăŷɛăđɵžŷ ĂƉŝƚĂů d W: W^ ϲ dž K, Ͳϭй >K' &ŝdžğěͿ ϮϬϬϱ ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ W^ Đ ϮϬϭϮ ϳϳ ϮϬ Ϯϭϲ ϳ ϮϬϬ Ϭ ϭθϯ ϯ ϭθϯ ϲ ^, &>Kt ^,Z Đ WZ d y D Z'/ й ϭϭϳ Ϯϯ ϰϵй ϭϯϳ ϲϳ Ϯϳй ϭϯϭ ϬϬ Ϯϱй ϭϳй ϭϳй ϭϲϲ ϳ ^ > ^ й, ' Ϯϱϭ Ϯϱ ϯϭϭ ϲϵ ϭϯй ϭϯй ϮϬϭϮͲϭϰ 6WDOW\ ϭθй ϭϲй ϮϬϭϬͲϭϰ 6WDOW\ ϭ ϵθϭй ϭθй KDW Z d/' ϭϱϭ Ϭ ^ > ^ D/>Ϳ Z ϭϯϯ ϯ t <>z ϳϯϵ ϲϱй ϰϳй ϭ Ϯϭϳ ϭ ϳϴϱ ϯ ϴϴϮ ϭϭϳ ϬϬ Ϯϲй ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ s' />z sk> ϬϬϬͿ hw Kt sk>hd hd /^d Z d/' ϭϭ ϮϬ ϳ ϭϳ ϭθ Ϯϴ Ϯϭ Ϯϲ Z > d/s ^dz 'd, 'ZKhW Z < ϯϳ ϰϲ ϯϳ ϱϳ ϯϱ ϳϬ ϰϰ ϳϮ ϰϳ ϳϭ ϲϭ ϲθ ϳϭ ϰϱ ϲϲ ϲϵ ϭϵϭϭ ϭϳϭϭ 6WURQJ HVWPDWHV ϭϱϭϭ ϭϯϳ ϬϬ ϭϳй ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ^DZ Z d/' ϭϭϭϭ ϵϭϭ ϰ ϱϵϯ /s d K ϰͳ Ɖƌ ϭϭͳ Ɖƌ ϭθͳ Ɖƌ ϮϱͲ Ɖƌ ϮͲDĂLJ ϵͳdălj ϭϲͳdălj ϮϯͲDĂLJ ϯϭͳdălj d й ϰϭ ϯϵ ϯθ ϰϰ ϰϳ ϱϵ ϲϯ ϱϲ ϲϭ d y Z d ϱϭϰ ϱϲϰ ϲϯϯ ϱϵϭ ϲϯϰ ϭ ϬϳϬ ϭ ϭϯϭ ϭ ϭϯϭ ϭ Ϭϲϴ <>K' ϭ ϭ ϭ ϰ ϭ ϰ ϭ ϳ ϭ Ϯ ϯ ϲ ϰ Ϭ ϰ ϭ ϰ ϲ Z Θ d 'Z W, Z d/' ϮϲϬϬ ϮϰϬϬ ϮϮϬϬ ϮϬϭϱ ƐƟŵĂƚĞ ϮϬϭϭ ϱϰ ϭϭ Z dhz K Yh/dz й ϮϬϭϯ ϵϯ ϮϮ ϮϬϭϰ ƐƟŵĂƚĞ ϮϬϭϬ ϰϱ ϭϭ Ϯϲ /s Đ ϳϳ d ϮϬϭϭͲϭϯ ϯθϭй Ϯϲϯй Ϯϱϴй ϮϬϭϭͲϭϯ Ϯϰй ϮϬй ϭϲй ϮϬϭϭͲϭϯ Ϯϭ ϬϬ ϯ ϱйͿ UHDW JURZWK UDWHV ϴϬϬ ϳϬϬ < s > Ϭ ϳϵdž Ζϭϯ ĐϲϬϱ ϬϬ ϲϭϭ /s 'Z Zd >W, нϭϱ ϬϬ нϯ ϱϰй ϱϭϭ ϰϲϭ ϰϲ ϮϬϭϯ DW>Kz ^ ϰ ϲϵϳ ϭϭйͿ ϰϯϭ ϳϬ ϬϬ ϲϯ ϯϯ WZ/ 0QPDO RYHUKHDG VXSSO\ ϮϬϬϵ ϱϲ ϬϬ ϴϯ ϯϯ ϳϲ ϲϳ ^ŚĂƌĞƐ ϱθϯd &ůžăƚ ϮϰϱD D'Dd ŽǁŶƐ h > Ͳ ^ W ϭϭϭ Ϭ O eil Methodology The stock has been consolidating for 53 weeks and is trading below its 50- and 200-DM. Technically, it has good O eil Ratings and Rankings, with an RS Rating of 59 (which is set to improve as the stock gathers momentum) and an Up/Down Volume ratio of 1.7, reflecting accumulation. In FY 2017, headline earnings and core headline PS grew 26% and 20%, y/y, respectively. The Company s strategy to deepen its penetration in the traditional market segment contributed to the strong results. S Taxi delivered 22% growth in headline earnings. With a loan portfolio currently comprising 29,000 vehicles, S Taxi finances and insures one in every three of the financed national minibus taxi fleet. TCRS grew core headline earnings at 39% y/y. Institutional sponsorship increased 200% y/y to 90 in September DŬƚ ĂƉ Zϯ ϱϯ ^ĂůĞƐ Zϯ Ϯϵ ϮϱϬ Ϭ ϭϭϲ ϳ Company Overview Transaction Capital is a non-depository financial services group that operates through two divisions: S Taxi (53% of FY 2017 revenues) and Transaction Capital Risk Services (TCRS) (40%). S Taxi, the Group s asset-backed lending division, focuses on financing small-to-medium enterprises (SMs) in the minibus taxi industry. S Taxi and S Bakkie are two subsidiaries under this division. Its risk services division provides customer management and capital solutions to its clients, enabling them to effectively manage customers throughout their lifecycle. &ŝŷăŷđğͳ ŽŵŵĞƌĐŝĂů >ŽĂŶƐ ^ĂŶĚƚŽŶ ^Khd, &Z/ /ŶĐ ϮϬϬϮ Ϯϴϯ ϯ ϯϭϲ ϳ Transaction Capital (TCPJ.Z) provides specialized financial and allied services to under-served segments of the South frican and ustralian financial services sector. It continues to benefit from strategic acquisitions. :K, ^ hz' džđś ϬϬϬϭϲϳϯϵϭ ǁǁǁ ƚƌăŷɛăđɵžŷđăɖŝƚăů ĐŽ njă dz ^ d/k W/d > /^ ^Khd, &Z/ Ͳ ^ /s ^dd d,k> /' KDW z Kt/' WKZd&K>/K K& KW Z d/' ^h ^/ / Z/ ^ d, KDW z KW Z d ^ / &KhZ /s/^k^ ^^ dͳ < > /' /s/^/k K^/^d^ K& dtk h^/ ^^ ^ d, ^ d y/ t,/, WZKs/ ^ &/ dk ^D >>ͲD /hd d ZWZ/^ ^ / d, D// h^ d y/ / h^dzz Z dzh^d t,/, WZKs/ ^ tkz</' W/d > &/ KDD Z / > dkz^ζ D ' D d ^ Zs/ ^ d, h^ hz > /' /s/^/k KDWZ/^ ^ zwkzd t,/, WZKs/ ^ h^ hz W Z^K > >K ^ >>/ WZK h d^ dk d, >Kt Z / KD >/ d^ d, Z /d ^ Zs/ ^ /s/^/k K^/^d^ K& K>> d/k K& h ZͲW Z&KZD/' K^hD Z d WZKs/ /' Z /d Z/^< D ' D d K^h>d/' >zd/ ^ WZ / d/s DK >>/' ^K&dt Z ^ Zs/ ^ d, W zd d ^ Zs/ ^ /s/^/k /^ d, Kt Z KW Z dkz K& K&&Ͳ^/d hdkd d d >> Z D,/ WZ ͲW / /d Z ^ > dzk/ &h dz ^& Z &dͿ d ZD/ >^ ϰϯϯ ϯ ϰϭϭ Ϭ ϯϲϲ ϳ Source: Corporate Website нϯϳ ϭϭ ϱϯϭ ϱϰθϱ W^ ZĂŶŬ ϵϵ Transaction Capital %HVW (36 UDQ ϯθϭ ϱϲ ϲϳ ϳϳ ϳ н ϱϭ ϬϬ ϯϰϭ ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ ϰϯ ϯϯ ϰϭ ϬϬ ϯϲ ϲϳ ϯϭ ϲϳ 5 6 OQH DW QHZ KJK ϭϵϭ Ϯϴ ϯϯ ϭϳϭ Ϯϱ ϬϬ ϭϱϭ Ϯϭ ϲϳ ϮϬ ϬϬ ϭθ ϯϯ ϭϯϭ ϭϯϭ ϭϭϭ 6ROG (36 DQG UHYHQXH JURZWK ϭϲ ϲϳ ϭϭϭ >K' ϮϬD ϱd ϭd ϮϬϬ< ϰϭ< sk>hd Ϯϴϵ ϱ< Ͳϵϰй Ξ :,//,$0 2 1(,/ &2,1& D Z Ϭϵ :h Ϭϵ &/ / >^ W^ ĐͿ ^ W Ϭϵ ϱϲ ϬϬ Ϭϵ D Z ϭϭ ^ W ϭϭ ϰϱ ϭϭ ϭϭ D Z ϭϭ Ϯϲ ϴϬ :h ϭϭ ^ W ϭϭ Ϯϳ ϯϭ ϭϭ D Z ϭϯ :h ϭϯ Ͳϭϵй W^ й, ' ^ > ^ D/>Ϳ Z ^ > ^ й, ' :h ϭϭ ϳϯϵ Ϭ ϭ Ϯϭϲ ϴ ^ W ϭϯ ϱϭ ϲϲ ϭϯ D Z ϭϯ ϯϵ ϵϭ :h ϭϯ нθϲй ϴϯϰ ϱ ϵϱϭ ϯ ϭ ϴϮϳ ϭ нϲϱй ϭ Ϭϱϲ Ϭ нϵϯй ^ W ϭϯ ϱϯ ϯϭ ϭϯ D Z ϭϰ ϭϯϭ ϯϭ нϱй нϯϯϳй Ϯ Ϭϴϵ Ϭ ϭ ϭϵθ Ϭ нϭϰй нϭϯй W^ й ^hzwz/^ :h ϭϰ W ϯ ϮϬϭϰ Ɛƚ ϱ ϱͳljƌ,ŝőś ϭϭ ϱͳljƌ >Žǁ ϯ ǀƐ /ŶĚ ǀŐ Ϭ ϯdž ϳ &h ^ ^, Z ^, > z &h ^ ϮϬϭϰ t/>>/ D KΖ /> н K / ϴ ϭϭ ϵ ϭϭ ϭϯ ϭϭ ϭϭ ϰ ϴϴϯ ϵϳϲ ϱ ϴϮϲ Ϯϵϵ ϲ ϵϲϰ ϰϰϭ ϲ ϳϵϲ Ϯϳϯ ϳ ϲϳϳ ϴϲϯ ϭϰd ϭϰd ϭϰd dz ^ d/k W/d > d W: Ϳ tğğŭůlj ĂƐ ŽĨ &Z/ ϯϭ DĂLJ ϮϬϭϰ Ĩ &Z/ ϯϭ DĂLJ ϮϬϭϰ Growth Drivers In ovember 2016, the Group acquired Recoveries Corp, a provider of customer management solutions in ustralia, for UD 43M. The Company plans to expand into the ustralian debt recovery market. It also acquired a major share in Road Cover and Beancounter in ovember Road Cover provides valueadded services to customers and Beancounter offers accounting and payroll services to SMs. Through these acquisitions, the Company aims to enter the value-added and cloud accounting services markets in South frica. ooking Forward Management reiterated that it will look for acquisition opportunities as part of its growth strategy, with a narrow focus on businesses operating within existing or adjacent market segments. Minibus taxis are the main mode of transportation for more than 50% of South fricans earning less than ZR 3,000 per month. Usage has been consistently increasing. Per the ational and Transport ct of South frica, a minibus taxi must be scrapped after seven years. ging fleets and recapitalization are driving higher demand and the need for finance. ext catalyst: The Company s H1 FY 2018 results are expected on May 24, ocal Code: R:TCP Bloomberg Symbol: TCP:SJ ISI: Z

52 Transaction Capital SOUTH FRIC TRSCTIO CPIT JS (TCPJ.Z) FIC-COSUMR OS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC TRSCTIO CPIT IMITD IS SOUTH FRIC-BSD SM-D MDIUM-SIZD TRPRISS (SMS).IT HS DSIGD PRIC = IVSTMT HODIG COMPY. TH COMPY OPRTS S ITS OW ISURC PRODUCTS THT IT SS THROUGH ITS OW 10 X PS O-DPOSIT TKIG FICI SRVICS COMPY. TH COMPY'S ISURC C CPTIV TITY. TRSCTIO CPIT RISK SGMTS ICUD S TXI, TRSCTIO CPIT RISK SRVICS, SRVICS DIVISIO IS PROVIDR OF CUSTOMR MGMT D D GROUP XCUTIV OFFIC. TH COMPY OPRTS I TWO CPIT SOUTIOS THROUGH PTFORM, BIG ITS CITS PRICIP RS: S TXI D TRSCTIO CPIT RISK TO MITIGT RISK THROUGH THIR CUSTOMR GGMT IFCYC 600 SRVICS. S TXI IS VRTICY ITGRTD TXI PTFORM. IT PROVIDS RG OF SRVICS TO SMS, WHICH ICUD UTIIZIG SPCIIST CPBIITIS D DT TO DPOY PROPRTY D TRD FICIG, S W S IVOIC DISCOUTIG DVOPMT CRDIT D ID BUSISS SRVICS TO MG U W K Y PS c (SP.) CF/SHR c PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI ZR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP ZR 10.09BI. SS ZR3.91 BI SOUTH FRIC PS RTIG 52 IC 2002 ZX1653(OH -11%) PRIC SC 7000 Up % Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(26 STBIITY) +13% %(33 STBIITY) +3% , COMPOSIT RTIG IVT T/O DBT % %: 254%: 220% %: 23%: 26% TX RT : : BCKOG X '17 BK.V R&D 40(2.4%) DIV GR RT+22% (16) DIV BT 0.03(0) PH 0.04(0.03) RZCP % B Global Focus M ZR / VOUM 2M 600 K 50 K 10 K SP S PS (ZR) % CHG SS(BI ZR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) 3-4 7/12081 DC S +228% S +13% 63.0% +33.9% 2-3 9/16665 MR /15393 JU S -40% S -35% 13.5% +28.0% /17508 SP /20236 DC S -76% S +13% 13.1% +12.0% /21598 MR 15 15/20288 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Finance-Consumer oans 39.30S +24% S +0% 16.7% +14.4% /20336 SP /25341 DC S +19% S +5% 14.8% +14.9% /23356 MR /23344 JU S +11% S +15% 16.0% +16.5% /25931 SP /48520 DC S +7% S +26% 13.0% +15.3% /79021 MR 17 81/86335 JU 17 FOR IFORMTIO, C OR VISIT S +22% S +37% 15.2% +16.6% 87/91391 SP '13-18 P..'S OW OW HI ST 84/96112 DC 17 2X 17X 19X MR 18 TM DTGRPHS 2/2/2018

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It is currently extended from an ideal entry point. The Company s PS Rank stands at 89, indicating an excellent earnings profile. Consensus estimates have the Company s PS growing 15% (to THB 2.37) in 2017 (revised upward from THB 2.25), and 16% y/y (to THB 2.76) in In Q3 2017, adjusted net profit was THB 2.48B, up 6% y/y, and net revenue was THB 7.69B, up 5.2% y/y. The numbers were in line with estimates. The Company recorded a one-time gain of THB 3.5B from an insurance claim received under the terrorism protection policy. Revenue from rental and other services increased 1.6% y/y to THB 6.42B, driven by the contribution from a new mall, fullquarter contribution from renovated Central Marina, and the resilient performance of existing malls. ϳϭ ϱϭ ϳϬ ϲϭ ϰ ϱϳ Company Overview CP s portfolio comprises 30 shopping centers with a total leasable area of 1.61M square meters and seven office buildings, two hotels, and one residential condominium. With a total gross floor area exceeding 6M square meters, the Company is the industry leader, surpassing its closest competitor by more than double. Q revenue by source: retail (rent and services), 57%; food and beverage, 4%; hotel operation, 2%; other income, 37% (one time gain of THB3.5B). ϴϬ нϯϯй ϲ ϱϯ ϱ ϰϯ ϱ ϮϮ ϱ ϬϬ Central Pattana is Thailand s largest retail property developer, with a 21% market share in Bangkok s retail space. The Company aims to spend about THB 76B from 2016 to 2020 to expand its operations. ϮϲϬ ϮϰϬ ϮϮϬ ϭϳϭ нϰϰй нϯθϵй WZ/ ϭϵϭ нϯϰй ϳ ϲϭ >K' &ŝdžğěͿ ϯϭϭ ccelerating forward PS growth ϴ ϳϬ Source: Corporate Website W^ ƵĞ ϭϭ ϲ ϮϬϭϳĞ D'Dd ŽǁŶƐ ϭϱ Strong RS and /D rating supported by above-average volume ϭ ϰϭ ϭ ϯϭ ϭ ϮϬ ϭϯ ϭϯ ϭϭ ϭ Ϭϵ ϭϭ Ϭ ϵθ ϵ >K' sk>hd ϳϬD ϯϭd ϮϬD ϭϱ ϯd ϭϭd Ͳϲй Ϯ&/ / >^ DĂƌ ϭϯ :ƵŶ ϭϯ ϲ W^ d, Ϳ Ϭ ϯθ Ϭ ϯϯ й W^ й, ' нϱθй нϭϵй ^ĞƉ ϭϯ Ϭ ϯϯ ͲϱϬй ĞĐ ϭϯ Ϭ ϯϵ нϱϭй DĂƌ ϭϰ Ϭ ϯθ Ϭй :ƵŶ ϭϰ Ϭ ϰϭ нϯθй ^ĞƉ ϭϰ Ϭ ϰϯ нϯϭй ĞĐ ϭϰ Ϭ ϰϭ нϱй DĂƌ ϭϱ Ϭ ϰθ нϯϲй :ƵŶ ϭϱ Ϭ ϰϱ нϭϭй ^ĞƉ ϭϱ Ϭ ϰϭ Ͳϳй ĞĐ ϭϱ Ϭ ϰϭ Ϭй DĂƌ ϭϲ Ϭ ϱϯ нϭϭй :ƵŶ ϭϲ Ϭ ϱϭ нϭϯй ^ĞƉ ϭϲ Ϭ ϱϯ нϯϭй ĞĐ ϭϲ Ϭ ϰϵ нϯϭй DĂƌ ϭϳ Ϭ ϲϯ нϭϳй :ƵŶ ϭϳ Ϭ ϱϱ нθй ϵ^ > ^ D/> d, Ϳ ϰ ϴϲϳ ϰ ϱ ϭϱϭ ϴ й^ > ^ й, ' нϯϰй нϯϰй ϰ ϴϲϰ ϯ нϭϰй ϱ ϯϭϵ ϱ ͲϮϲй ϱ Ϯϳϯ ϱ нθй ϱ ϱϭϵ ϳ нϳй ϱ ϳϱϵ ϲ нϭθй ϱ ϳϱϰ ϳ нθй ϱ ϳϲϭ ϰ нϵй ϱ ϴϰϳ ϳ нϲй ϲ Ϭϳϭ Ϭ нϱй ϲ ϲϭϯ ϰ нϭϱй ϲ ϴϬϯ ϰ нϭθй ϲ ϴϬϬ Ϭ нϭϲй ϲ ϵϯϭ Ϭ нϭϰй ϳ ϭϭϭ ϯ нθй ϳ ϮϬϱ ϭ нϲй ϳ ϭϲϳ ϯ нϱй Π ϮϬϭϳ t/>>/ D KΖ /> н K / ^ĞƉ ϭϳ Ϭ ϱϰğ нϰйğ ĞĐ ϭϳ Ϭ ϱϵğ нϯϭйğ DĂƌ ϭθ Ϭ ϲθğ нϭϭйğ :ƵŶ ϭθ Ϭ ϲθğ нϯϰйğ ϵ ϮϱϮ ϭğ нϯθйğ ϵ ϮϱϮ ϭğ нϯϵйğ W ϯϯ ϮϬϭϳ Ɛƚ ϯϭ ϳ ϮϬϭϴ Ɛƚ Ϯϱ ϳ ϱͳljƌ,ŝőś ϰϯ ĞŶƚƌĂů WĂƩĂŶĂ W d,Ϳ tğğŭůlj ĂƐ ŽĨ tğě ^ĞƉƚĞŵďĞƌ Ϭϲ ϮϬϭϳ Growth Drivers The Company has a proven track record of expansion and an average occupancy rate of 94% over the past 10 years. The Company is looking to expand its leasable area to 2.22M square meters by 2021 (38% growth). It also plans to increase the number of malls it manages from 30 to 44 by In 2017, the Company shifted its focus from being a traditional mall developer to a mixed-use developer in order to enhance its top line and asset yield. It launched three new projects in 2017, which will generate revenue of about THB 2B in On ugust 28, CP Retail Growth easehold Property (CPRF) received approval to convert itself into an RIT. CP holds a 26.7% stake in CPRF. Post conversion, CP will sell Central Festival Pattaya Beach and Hilton Hotel Pattaya to CPRIT for a net asset price of THB 11.9B. ooking Forward Management has set a five-year target of a top-line CGR of 14 15% for , driven by Thailand s urbanization trend. The next catalyst is the Company s Q earnings release on February 26, ocal Code: TH:CP Bloomberg Symbol: CP:TB ISI: TH0481B10Z00

54 Central Pattana THID CTR PTT (CP.TH) BKK R STT DVPMT/OPS 4.49B 3.32B SHRS RIGS BUSISS: MGMT owns SC CTR PTT PUBIC COMPY IMITD IS THID-BSD PTTY HOT D CTR HOT & COVTIO CTR PRIC = COMPY GGD I TH PROPRTY DVOPMT BUSISS. TH UDOTHI. TH COMPY OPRTS ITS SHOPPIG CTRS UDR 10 X PS COMPY OPRTS THR BUSISS SGMTS: TH DVOPMT OF CTRWORD, CTRPZ D CTRFSTIV BRDS. ITS SHOPPIG CTR BUIDIGS, OFFIC BUIDIGS D CODOMIIUMS SUBSIDIRIS COMPRIS CTR PTT RM 2 CO., TD., FOR RT ICUDIG TH PROVISIO OF UTIITY SRVICS, TH CTR PTT CHIGMI CO., TD., GSU RTY CO., OPRTIO OF PY D D WTR THM PRKS I TH SHOPPIG TD., CTR PTT RTTTHIBT CO., TD., CTR CTR BUIDIGS; TH SS OF FOOD D BVRGS I TH RTY SRVIC CO., TD. D CTR FOOD VU CO., TD., SHOPPIG CTRS, D HOT BUSISS ICUDIG TH HITO MOG OTHRS U W K Y PS THB (DC.) CF/SHR THB PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI THB) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP THB BI. SS THB28.58 BI THID PS RTIG 95 IC 1980 THB82.50(OH -5%) Up 15.39% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(8 STBIITY) +11% %(9 STBIITY) +9% COMPOSIT RTIG IVT T/O PRIC SC DBT % %: 38%: 25% 16%: 15%: 15% TX RT : : BCKOG X '16 BK.V R&D DIV 0.55(1.0%) DIV GR RT+32% (28) BT 1.10(12) PH 0.10(0.08) BGKST Global Focus M THB % B VOUM 80 M 50 M 30 M SP Q 21% BOV ST. PS (THB) % CHG SS(BI THB) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 32.9% +20.4% /405M DC % % 32.4% +19.5% /399M MR % % 33.4% +19.2% /323M JU % % 33.6% /329M SP % % 31.6% /321M DC % % 37.3% % % 34.3% /312M MR /319M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Real state Dvlpmt/Ops % % 29.9% /318M SP % % 28.9% /327M DC % % 35.1% /258M MR % % 33.7% /266M JU % % 33.8% /445M SP % % 31.2% /309M DC % % 38.5% /311M MR % % 34.6% /306M JU 17 FOR IFORMTIO, C OR VISIT % % 84.2% 288/305M 10 M DC Q % '13-18 P..'S OW OW HI ST SP M 283/306M DC 17 22X 35X 41X MR 18 TM DTGRPHS 2/2/2018

55 BRZI Iguatemi mpresa Shopping Centers On /ŐƵĂƚĞŵŝ ŵɖƌğɛă ^ŚŽƉƉŝŶŐ ĞŶƚĞƌƐ KŶ /'h Z &K ϮϬ dž Source: Corporate Website нϱϱ ϭϭ ϯϭϯϳ ϲθϭϭ W^ ZĂŶŬ ϲϯ Z/'d KZϱ ŝőƶăƚğŵŝ ĐŽŵ ďƌ ZĞĂů ƐƚĂƚĞ ǀůƉŵƚ KƉƐ DŬƚ ĂƉ Z>ϱ ϱϲ ^ĂůĞƐ Z>ϲϲϴ ϭϱd WĂƵůŝƐƚĂŶŽ Z /> ^ŚĂƌĞƐ ϭϳϳd &ůžăƚ ϲϵd W^ ƵĞ ϱ ϭϯ ϮϬϭϳĞ K, Ͳϰй D'Dd ŽǁŶƐ /'h d D/ DWZ ^ ^,KWW/' d Z^ ^ /^ Z />Ͳ ^ KDW z ' ' / d, Z > ^d d s >KWD d ^ dkz d, KDW z /^ &K h^ K d, KDD Z / > yw>kz d/k W> /' K& ^,KWW/' d Z^ Z Z/' K& D//^dZ d/k ^ Zs/ ^ K& Z '/K > ^,KWW/' d Z^ K& D/y Ͳh^ Z > ^d d KDW> y ^ WhZ, ^ ^ > K& WZKW Zdz yw>kz d/k K& ZKd d/' W Z</' >Kd^ D / d/k / d, > ^/' K& WZKDKd/K > ^W ^ ^ t >> ^ WZ W Z d/k K& ^dh / ^ WZK: d^ W> /' / WZKDKd/K D Z, /^/' DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ Ϭ ϱϵ Ϭ ϱϱ Ϭ ϵϲ Ϭ ϵϲ ϭ ϳϬ ϭ Ϭϱ ϭ ϯϭ ϭ Ϭϴ Ϭ ϵϯ ϭ ϯϲ ϯϲйÿ ϭ ϬϬ ϵйÿ W^ Z> ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z Z> ϭ ϭθ ϭ ϬϬ ϭ Ϯϵ ϭ ϭϳ Ϭ ϴϴ ͲϬ ϯϱ ϭ Ϯϯ ϭ ϭϯ ϭ ϴϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϲй WZ d y D Z'/ й ϱϭй ϱϭй ϲϲй ϱϳй ϳϳй ϱϰй ϰϰй ϯθй ϯϭй ϮϬϭϰͲϭϲ Ͳϳй ϭϭ ^ƚăďŝůŝƚljͿ ϭϳй Z dhz K Yh/dz й ϵй ϳй ϭϭй ϭϭй ϭϲй ϭϭй ϴй ϲй ϮϬϭϮͲϭϲ Ͳϱй Ϯϭ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϯθй ϭϱй Ϯϭй Ϯϱй Ϯϱй Ϯй ϯθй ϭϭй ϱй KDW Z d/' ^ > ^ D/>Ϳ Z> ϭϵϭ Ϯϭϳ Ϯϲϰ ϯϯϭ ϰϭϭ ϰϭϵ ϱϳϳ ϲϯϲ ϲϲθ /s d K ϮϮ Ϯdž ϲθ t <>z :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď ϭϭ &Ğď ϭϳ &Ğď Ϯϰ DĂƌ Ϭϯ DĂƌ ϭϭ d й ϮϬϭϰͲϭϲ ϳϬй ϲϱй ϳϬй d 'Z W, Z d/' ϱϵ ϱϲ ϱϱ ϲϭ ϲϯ ϱϲ ϲϯ ϲϯ ϲϭ d y Z d ϮϬϭϰͲϭϲ ϵй ϮϬй ϭϵй s' />z sk> ϬϬϬͿ ϳϮϭ ϲθϯ ϲϳϰ ϲθϲ ϳϮϲ ϳϱϬ ϴϬϰ ϴϯϭ ϴϲϱ <>K' ϮϬϭϰͲϭϲ < s > Ϯ Ϭϯdž Ζϭϲ hw Kt sk>hd ϭ Ϯ ϭ ϭ ϭ ϱ ϭ ϱ ϭ ϲ ϭ ϱ ϭ ϱ ϭ ϱ ϭ ϲ Z Θ Ϭ ϯϰ ϭ ϭйͿ /s 'Z Zdнϭй ϮϮͿ hd /^d Z d/' ϯϭ ϯϭ ϯϱ ϰϭ ϯϱ Ϯϳ ϮϮ Ϯϱ ϭϲ /s Z> Ϭ ϲϳ ϰϭ ϬϬͿ >W, Ϭ Ϭϯ Ϭ ϬϮͿ Z > d/s ^dz 'd, ϱϵ ϰϳ ϰϱ ϱϭ ϱϯ ϱϯ ϱϱ ϱϯ ϰϵ d 'ZKhW Z < ϱϭ ϰϵ ϱϯ ϰϱ ϯϭ ϱθ ϱϯ ϱϲ ϱϯ ϮϬϭϲ DW>Kz ^ ϯϭϭ ͲϲйͿ >K' &ŝdžğěͿ Increased estimates Minimal overhead supply WZ/ ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϭ ϴϬ ϳϬ ϲϭ Break out tight consolidation at highs ϱϭ ϰϲ ϰϯ ϯθ ϯϰ ϯϭ ϱϭ Z> ϯϭ нϭ ϯϱϭ нϭ ϭϯй Ϯϲ Ϯϰ ϮϮ ϭϵ 40-Week M 10-Week M ϭϳ ϭϱ ϰϵ ϭϯ ϭϯ ϭϭ ϭϭ Iguatemi is one of the leading shopping centers operators in Brazil. With the most recognizable brands in its portfolio and a huge gross leasable area (G), the Company is poised to grow. Company Overview The Company s portfolio comprises 16 shopping malls, one outlet, and four commercial towers, totaling to 746K square meters of G (455K square meters of G). Iguatemi focuses on the south and southwest regions of Brazil, and targets and B income classes. Q gross revenues by segment: rental, 70%; parking, 18%; administration fees, 6%; others, 6%. O eil Methodology Weakness in the Brazilian market has dragged the stock below it 50-DM, with the next level of support at its 100-DM. We would recommend that investors accumulate positions once the stock retakes its 50-DM on good volume. The Company posted strong double-digit PS growth in last three quarters, generating a high PS Rank of 78. Consensus estimates call for PS growth of 32% and 27%, in 2017 and 2018, respectively. In Q3 2017, Iguatemi s net revenues increased 5.3% y/y to BR 169.7M and BITD grew 4.6% to BR 133.8M. ll figures were ahead of consensus estimates. BITD margin was 78.9%, surpassing the top of Company guidance. Institutional sponsorship is very strong, with the number of funds owning the stock totaled 395 at the end of September 2017, compared with 261 at the end of September ϵ Relative strength turning up ϴ ϳ ϲ Strong upside volume prior to break out ϰ ϴ ϰ ϰ >/ sk>hd ϲ ϯd ϰ ϱd ϰ ϮD Ϯ ϳD нθй ^ĞƉ ϭϯ ĞĐ ϭϯ &/ / >^ Ϭ ϴϮ Ϭ ϯϰ W^ Z>Ϳ нϯϭϭй нϭϯй W^ й, ' DĂƌ ϭϯ Ϭ Ϯϳ нϯϱй :ƵŶ ϭϯ Ϭ ϮϬ Ͳϰϭй ^ĞƉ ϭϯ Ϭ Ϯϲ Ͳϲϴй ϵϲ ϵ ϭϯθ Ϭ DĂƌ ϭϰ Ϭ Ϯϳ Ϭй ϭϭϵ ϱ :ƵŶ ϭϰ Ϭ Ϯϴ нϰϭй ϭϰϯ ϲ ^ĞƉ ϭϰ Ϭ ϯϳ нϰϯй ϭϰϳ ϳ ĞĐ ϭϰ Ϭ ϯϳ нϭϲй ϭϲϲ ϯ DĂƌ ϭϱ Ϭ Ϯϱ Ͳϳй ϭϰθ ϲ :ƵŶ ϭϱ Ϭ Ϯϳ Ͳϰй ϭϱϲ ϰ ^ĞƉ ϭϱ Ϭ ϯϯ Ͳϭϭй ĞĐ ϭϱ Ϭ Ϯϰ Ͳϯϱй DĂƌ ϭϲ Ϭ ϮϮ ͲϭϮй ϵϯ ϵ ϭϭθ ϱ ^ > ^ D/> Z>Ϳ нϭϭй нϯϰй ^ > ^ й, ' ϵϯ ϴ ϭϱϵ ϰ ϭϳϭ ϵ ϭϲϭ ϱ нϰй нϯй нϵй нθй нϯϵй нϰθй нϰϲй нϯϭй нϯϰй нϵй нθй нϯй нθй нϭϭϲ ϰй нϰϯ ϯй W^ й ^hzwz/^ ϭϯϳ &h ^ ϭϭϵ ϭϵ ϱϳϳ ϴϱϰ ϮϮD ^, Z ^, > z &h ^ ͲϮ ϲй Ͳϭ ϵй Ͳϰ ϲй нϯ Ϯй Ͳϱ Ϯй нϯ ϯй нϰϰ ϲй нϭϭ ϰй нθ ϳй нϰ ϯй нϯϵ ϲй ϭϯϭ ϮϯD ϭϰϭ ϯϭd ϭϰϯ ϮϴD ϭϱϯ ϯϭd ϭϳϭ ϮϴD ϭθϵ ϮϵD ϮϮϬ ϯϭd Ϯϯϳ ϯϯd Ϯϱϳ ϯϯd Ϯϱϵ ϯϭd ϮϯϮ ϮϴD Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭϭϭ Ϯ ĞĐ ϭϯ Ϭ ϯϯ Ͳϲй ϮϮϵ ϮϴD Ϯϯϳ ϮϵD :ƵŶ ϭϲ Ϭ ϮϬ ͲϮϲй ϭϲϯ ϴ ^ĞƉ ϭϲ Ϭ Ϯϯ ͲϯϬй ϭϲϭ ϭ ĞĐ ϭϲ Ϭ Ϯϴ нϭϳй DĂƌ ϭϳ Ϭ ϮϮĞ ϬйĞ :ƵŶ ϭϳ Ϭ ϮϰĞ нϯϭйğ ϭθϯ ϴ ϭθϯ ϱğ ϭθϵ ϮĞ нϰй нϭй нϳй нϭϰйğ нϭϲйğ нϱϳ ϯй нϯϱ ϳй нϯϭ ϲй Ϯϰϱ ϮϴD Ϯϱϱ ϯϭd Ϯϱϭ ϮϵD ^ĞƉ ϭϳ Ϭ ϮϲĞ нϭϯйğ ĞĐ ϭϳ Ϭ ϯϭğ нϳйğ W ϯϰ ϮϬϭϳϮϬϭϳ Ɛƚ ϯϯ Ϭ ϱͳljƌ,ŝőś ϯϲ Ϭ ϱͳljƌ >Žǁ ϭϯ Ϭ ǀƐ /ŶĚ ǀŐ Ϯ ϱdž /ŐƵĂƚĞŵŝ ŵɖƌğɛă ^ŚŽƉƉŝŶŐ ĞŶƚĞƌƐ KŶ /'h ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ DĂƌĐŚ ϭϭ ϮϬϭϳ DĂƌĐŚ ϭϭ ϮϬϭϳ Growth Drivers SSS y/y growth accelerated to 5.9% from 4.1% in Q and 1% in Q Same-store rentals (SSR) were up 6.1% and same-area rentals (SR) grew 5.8% in Q Currently, two Greenfield projects are in progress; Fashion Outlet Santa Catarina (30,000m2) and Fashion Outlet ova ima (30,300m2), which are scheduled to open in 2018 and 2019, respectively. With the economic turnaround in Brazil, the real estate sector is expected to benefit from the rebound in economic activity (H onward), falling interest rates, and improved consumer sentiment. Iguatemi is one of the best-positioned companies to benefit from this trend. ooking Forward Brazil s mall industry offers strong potential for growth and expansion, as it has only 56 square meters of G per 1,000 inhabitants, versus 150, 201, and 2,210 square meters in Mexico, Chile, and the U.S., respectively. 2017guidance remains unchanged, with net revenue growth of 2 7%, BITD margin of 73 77%, and capex of RB 80M 130M. ext Catalyst: The Company s Q earnings on February 19, ocal Code: BRIGT3 Bloomberg Symbol: IGT3:BZ ISI: BRIGTCOR5

56 Iguatemi mpresa Shopping Centers On IGUTMI MPRS SHOPPIG (IGU.BR) BSP BRZI R STT DVPMT/OPS M 86.54M SHRS RIGS BUSISS: MGMT owns X-DIV SC IGUTMI MPRS D SHOPPIG CTRS S. IGUTMI MPRS D PRPRTIO OF STUDIS, PROJCTS D PIG I PROMOTIO PRIC = SHOPPIG CTRS S IS BRZI-BSD COMPY GGD I TH D MRCHDISIG. TH COMPY HODS ITRSTS I SVR 10 X PS R STT DVOPMT SCTOR. TH COMPY IS FOCUSD O R STT PROJCTS, ICUDIG SHOPPIG CTR IGUTMI SO TH COMMRCI XPORTIO D PIG OF SHOPPIG CTRS, PUO, SHOPPIG CTR IGUTMI CMPIS, SHOPPIG CTR RDRIG OF DMIISTRTIO SRVICS OF RGIO SHOPPIG IGUTMI SO CROS, SHOPPIG CTR BOUVRD RIO IGUTMI, CTRS D OF MIXD-US R STT COMPXS, PURCHS D PRI D BS SHOPPIG CTR, SHOPPIG CTR IGUTMI S OF PROPRTY, XPORTIO OF ROTTIG PRKIG OTS, CXIS, SHOPPIG CTR IGUTMI BRSII D PRI D BS MDITIO I TH SIG OF PROMOTIO SPCS, S W S PRIM OFFICS, MOG OTHRS U W K Y PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP BR 7.60BI. SS BR MI BRZI PS RTIG 69 BR43.02(OH -1%) Up 32.57% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(10 STBIITY) +7% %(15 STBIITY) +15% COMPOSIT RTIG IVT T/O 22.2x DBT % %: 65%: 70% 9%: 20%: 19% TX RT : : BCKOG X '16 BK.V R&D DIV 0.68(1.6%) DIV GR RT+6% (26) BT 0.94(45) PH 0.04(0.03) BRBOVS Global Focus M BR % B VOUM 8M 5M 3M SP Q -55% BOW ST. PS (BR) % CHG SS(MI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 44.2% +9.0% % % 40.3% +8.8% % % 34.6% +8.6% % % 45.1% +9.2% % % 39.0% +9.5% % % 30.0% +9.2% % % 30.2% +8.9% % % 36.3% +8.4% % % 24.1% +7.4% % % 23.8% +7.1% % % 21.1% +6.5% / / / / / / / / / / /28249 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Real state Dvlpmt/Ops % % 24.9% +5.7% /30242 SP % % 26.6% +6.0% % % 29.9% +6.3% % % 29.7% +6.9% % % 30.9% +7.3% 256/ / / /43737 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT M DC Q % '13-18 P..'S OW OW HI ST DC 17 13X 38X 35X MR 18 TM DTGRPHS 2/2/2018

57 IDI >Θd &ŝŷăŷđğ,žůěŝŷőɛ >&, / ZW^ Ϯ dž ϮϯϬ Ϭ ϮϭϬ Ϭ ϭϵϭ Ϭ ϭϳϭ Ϭ ϭϱϭ Ϭ ϭϯϭ Ϭ ϭϯϭ Ϭ ϭϭϭ Ϭ ϵϱ ϬϬ ϴϱ ϬϬ ϳϱ ϬϬ ϲϱ ϬϬ ϲϭ ϬϬ ϱϱ ϬϬ Source: Corporate Website нϵϭ ϮϮ ϲϲϯϭ ϳϯϬϬ W^ ZĂŶŬ ϴϭ &T Finance Holdings d/k > / / džđś / ϰϵθ>ϭϭϭϭϱ ůƞŝŷăŷđğśžůěŝŷőɛ ĐŽŵ &ŝŷăŷđŝăů ^ǀĐƐͲ^ƉĞĐŝĂůƚLJ DŬƚ ĂƉ /ZϮϲϳ ϰϱ ^ĂůĞƐ /Zϴϱ ϳϮ DƵŵďĂŝ / / /ŶĐ ϮϬϬϴ W^ ƵĞ ŝŷ ϯθ ĂLJƐ ĞͿ K, Ϭй >K' &ŝdžğěͿ ϰϯϭ ϯθϭ ϯϰϭ ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ Strong PS growth ϭϵϭ ϭϳϭ ϭϱϭ ϭϰϲ ϴϱ ϭϯϭ нϭϯ Ϭϱ ϭϭϭ RO to move from 14% to 20% by 2020 ϵϭ ϰϭ ϬϬ xcellent RS and /D Ratings ϲϭ ϴϰ н Ϯϱ ϬϬ Ϯϯ ϬϬ O eil Methodology FH retook its 21- and 50-DMs on good volume post the release of Q2 FY 2018 results. Investors can take this opportunity to add to positions. The Company has an PS Rank of 69. Consensus estimates have PS growing 39% and 33% in FY 2018 and FY 2019, respectively. ncouraged by consistent and strong financial performance, institutional ownership surged 68% y/y to 121 in September The Company is keen on improving RO through optimizing costs and improving fee structure. FH s RO improved to 15.15% in Q2 FY 2018, the highest ever since its listing. It aims to achieve RO of at least 18% by 2020 or earlier. ϴϬ ϳϬ ϯϭ ϬϬ Company Overview FH is a non-banking financial holding company, offering a diverse range of financial products and services across the corporate, retail, and infrastructure sectors. majority share of the Company is owned by arsen & Toubro td, a $14.3B engineering conglomerate. With a loan book of IR 723B and a pan-india presence through 195 branches, FH has emerged as one of the largest BFCs. Q2 FY 2018 loans and advances by segment: wholesale, 60%; housing, 21%; rural, 16%; defocused, 3%. /Z нϵ ϳϱй ϭϯϭ ϭϭϭ ϯϱ ϬϬ &T Finance Holdings td (FH) is a leading nonbanking financial services company. It aims to gain market share and improve profitability through focusing on selected business verticals. 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The rural and housing segments reported RO of 25.32% and 30.15% in Q2 FY 2018, respectively. Going forward, wholesale financing (RO of 10.12%) will be the key driver of profitability improvement. Under its rural business segment, the Company grew loan disbursement 88% y/y. It is the second-largest tractor financier with an 11.1% market share in Q2 FY 2018 (versus 4.7% in Q2 FY 2017). In order to boost its housing finance business profitability, the Company is shifting focus toward the highermargin, relatively less competitive, self-employed segment for home and property loans. The transition will lead to lower costs once processes are streamlined and turnaround times are improved. The housing business reported disbursement growth of 34% y/y in Q2 FY ooking Forward By FY 2020, FH aims to establish digital and data analytics, which should be a sustainable competitive advantage to gain market share. ext Catalyst: FH is expected to report Q3 FY 2018 earnings on January 23, ocal Code: I:&TFH Bloomberg Symbol: TFH:I ISI: I

58 &T Finance Holdings &T FIC HODIGS IDI (FH.I) S FICI SVCS-SPCITY 1.82B M SHRS RIGS BUSISS: MGMT owns X-DIV SC &T FIC HODIGS TD. &T FIC HODIGS IMITD IS SGMTS CROSS POWR-THRM D RWB; PRIC = O-BKIG FICI ISTITUTIO-COR IVSTMT COMPY. TRSPORTTIO-RODS, PORTS D IRPORTS; TCOM, D OTHR 10 X PS TH COMPY'S SGMTS ICUD RTI D MID MRKT O-IFR SGMTS; IVSTMT MGMT, WHICH COSISTS OF FIC, WHICH COSISTS OF RUR PRODUCTS FIC, PRSO SSTS MGMT OF MUTU FUD D PRIVT QUITY FUD, VHIC FIC, MICROFIC, HOUSIG FIC, COMMRCI D OTHR BUSISS, WHICH COSISTS OF WTH MGMT D VHIC FIC, COSTRUCTIO QUIPMT FIC, OS D FICI PRODUCT DISTRIBUTIO. IT OFFRS RG OF SS, O GIST SHRS D SUPPY CHI FIC; FICI PRODUCTS D SRVICS CROSS RTI, CORPORT, WHOS FIC, WHICH COSISTS OF PROJCT FIC D HOUSIG D IFRSTRUCTUR FIC SCTORS, S W S O-PROJCT CORPORT FIC TO IFR D O-IFR MUTU FUD PRODUCTS D IVSTMT MGMT SRVICS STIMT 2019 STIMT PS IR (MR.) % % U W K Y CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK ,476, FOT MKT CP IR BI. SS IR98.00 BI IC IDI PS RTIG IR157.70(OH -26%) 600 Up 7.39% Since ddition RIGS GROWTH RT SS GR RT %(47 STBIITY) +38% %(45 STBIITY) +7% COMPOSIT RTIG IVT T/O PRIC SC DBT % %: 515%: 548% 28%: 32%: 3% TX RT : : BCKOG X '17 BK.V R&D 0.8(0.5%) DIV GR RT+2% (2) DIV BT 1.85(30) PH 0.03(0.02) IBOM Global Focus M IR % D VOUM 60 M 40 M 20 M DC Q -49% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 8.3% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /11836 DC % % 13.1% +10.5% /9616 MR % % 19.5% /9494 JU % % 11.4% +10.8% /12191 SP % % 11.3% /5658 DC % % 12.2% +13.9% % % % % % % % 11.7% +9.6% % 11.8% +12.6% % 11.6% +4.8% % 14.1% +15.9% /113M MR 17 26/23045 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Financial: Financial Svcs-Specialty % /18073 MR % 43/30582 SP /50818 DC 15 44/55750 MR /58483 JU 16 72/87367 SP /107M DC % % 13.1% % % 14.2% 112/131M JU /133M SP '13-18 P..'S OW OW HI ST 126/144M DC 17 MR Q +35% FOR IFORMTIO, C OR VISIT % % 14.4% +13.3% 10 M 12X 36X 52X MR 18 TM DTGRPHS 2/2/2018

59 IDI DĂƌƵƟ ^ƵnjƵŬŝ /ŶĚŝĂ Dh / &K ϮϬ dž Maruti Suzuki India d/k > / / džđś / ϱθϱ ϬϭϬϭϬ нϵϭ ϭϭ ϰϲϳθ ϭϭϯϱ W^ ZĂŶŬ ϴϳ ŵăƌƶɵɛƶnjƶŭŝ ĐŽŵ ƵƚŽ DĂŶƵĨĂĐƚƵƌĞƌƐ DŬƚ ĂƉ /Zϭ ϳϱd ^ĂůĞƐ /Zϱϴϲ ϭϯ Ğǁ ĞůŚŝ / / /ŶĐ ϭϵθϭ ^ŚĂƌĞƐ ϯϭϯd &ůžăƚ ϭϭϱd W^ ƵĞ ϰ Ϯϲ ϮϬϭϳĞ K, Ͳϯй D'Dd ŽǁŶƐ D Zhd/ ^h h</ / / >/D/d /^,K> /' KDW z d, KDW z /^ ' ' / d, D h& dhz WhZ, ^ ^ > K& DKdKZ s,/ > ^ KDWK d^ ^W Z W Zd^ hdkdk /> ^Ϳ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϲϭ ϵϱ ϰϯ ϰθ ϵϭ ϴϱ ϴϮ ϰϲ ϱθ ϭϵ ϴϭ ϳϰ ϵϰ ϰϰ ϭϯϲ Ϭϰ ϭϱϱ ϱϱ W^ /Z ϮϮϲ Ϭϭ ϰϱйÿ Ϯϱϴ ϰϵ ϭϰйÿ ^, &>Kt ^,Z /Z ϳϵ ϳϵ ϱϱ ϱϳ ϭϭϵ ϵϳ ϭϭϭ ϳϲ ϵϱ ϴϭ ϭϰϭ ϰϯ ϭϰϯ ϰϭ ϭθθ ϯϭ Ϯϯϱ ϱϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϭϰй ϴй ϭϯй ϵй ϲй ϳй ϴй ϭϭй ϭϭй ϮϬϭϰͲϭϲ Ϯϭй ϲ ^ƚăďŝůŝƚljͿ ϵй Z dhz K Yh/dz й Ϯϯй ϭϰй Ϯϰй ϭθй ϭϭй ϭϰй ϭϰй ϭϳй ϭθй ϮϬϭϮͲϭϲ Ϯϭй ϭϵ ^ƚăďŝůŝƚljͿ ϭϭй ^ > ^ й, ' Ϯϯй ϭϰй ϰϯй Ϯϯй Ͳϯй Ϯϲй ϭй ϭϰй ϭϱй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϭθϭ< ϮϬϳ< Ϯϵϲ< ϯϲϯ< ϯϱϯ< ϰϰϯ< ϰϰϱ< ϱϭθ< ϱθϲ< /s d K ϭϲ Ϯdž ϴϲ t <>z ĞĐ ϬϮ ĞĐ Ϭϵ ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϱ d й ϮϬϭϰͲϭϲ Ϯ ϵй ϭ ϭй Ϭ ϱϯй d 'Z W, Z d/' ϱϱ ϲϯ ϲϱ ϲϰ ϱθ ϲθ ϲθ ϲϵ ϳϬ d y Z d ϮϬϭϰͲϭϲ Ϯϰй Ϯϰй ϯϭй s' />z sk> ϬϬϬͿ ϳϭϴ ϳϰϮ ϳϱϳ ϳϱϯ ϳϱϱ ϳϵϳ ϳϱϮ ϳϬϭ ϲϯϭ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ Ϭ ϭ Ϭ ϭ Ϭ ϭ Ϭ ϭ Ϭ ϭ Ϭ ϭ ϭ ϭ Ϯ ϭ ϲ Z Θ Ϭ ϳϬй < s > ϲ ϯϯdž Ζϭϲ hd /^d Z d/' Ͳϳ Ϯϯ ϯϭ ϯϲ ϰϭ ϱϭ ϯϵ ϯϯ ϯθ /s /Z ϯϱ ϬϬ Ϭ ϲйͿ /s 'Z Zdнϯϱй ϮϴͿ Z > d/s ^dz 'd, ϱϵ ϲϭ ϲϯ ϲϭ ϲϰ ϳϲ ϳϬ ϳϭ ϳϭ d ϭ ϭϵ ϳϵ ϬϬͿ >W, Ϭ Ϭϴ ͲϬ ϬϯͿ 'ZKhW Z < ϴϯ ϭϭθ ϴϵ ϴϯ ϭϯϭ ϳϯ ϳϰ ϲϲ ϳϱ ϮϬϭϲ DW>Kz ^ ϭϯ Ϯϱϵ ϰйͿ WZ/ ϭϯ< ϭϯ< ϭϭ< Minimal overhead supply ϭϭ< Break out of cup with handle on 1.9x average daily volume Increased estimates >K' &ŝdžğěͿ ϵϭϭϭ ϴϬϬϬ ϳϬϬϬ ϲϭϭϭ ϱ ϴϬϮ Solid growth rates нϭϯϯ ϲϭ ϱϭϭϭ /Z нϯ ϯϲй ϰϲϭϭ ϰϯϭϭ High up/down volume ϯθϭϭ Rising CF/share, PT margin and RO ϯϰϭϭ ϯϭϭϭ ϳϭ Ͳ Source: Corporate Website 40-Week M ϮϲϬϬ ϮϰϬϬ ϮϮϬϬ ϭϵϭϭ ϭϳϭϭ ϭϱϭϭ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ 10-Week M R/S near highs with good /D rating Maruti Suzuki (MUD.I) is the largest passenger vehicle company in India by sales. The Company continues to grow through new product launches and capacity expansion. Company Overview The Company is a subsidiary of the Japanese automobile and motorcycle manufacturer Suzuki. It holds about a 47% market share in the domestic passenger vehicle industry. It offers more than 15 brands and more than 150 variants across industry segments such as passenger cars, utility vehicles, and vans. The Company has a total annual production capacity of 1.5M units. O eil Methodology Maruti s PS Rank is strong at 94, due to consistent PS growth over the last few quarters. Consensus estimates have PS growing 11% and 22%, y/y, respectively, in FY 2018 and FY The Company reported Q3 FY 2018 revenues of IR 192.8B (+14.2% y/y) and net profit of IR 18.0B (+3.0% y/y). Revenues were slightly above consensus expectations, but net profit missed street estimates. Operating BITD grew 22.1% y/y while BITD margin improved 100bps y/y to 15.7%, above consensus estimates of 15.5% in Q3 FY Growth Drivers In Q3 FY 2018, sales volume increased 11% y/y, driven by demand for models Baleno and Vitara Brezza. The Company plans to launch a new line of SUVs over the next few years to capitalize on increasing demand for SUVs in India. ϭϭϭϭ ϵϭϭ ϴϬϬ ϳϬϬ ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ >/ sk>hd ϭϰd ϭϭd ϲd Ͳϭϰй ϭ ϳD ϭ&/ / >^ ĞĐ ϭϭ W^ /ZͿ DĂƌ ϭϯ ϱθ ϭϵ :ƵŶ ϭϯ ϭϰ ϲϳ ͲϮϵй W^ й, ' ϯϱϭ ϵϳϯ Ϭ ϭϭϳ ϳϴϭ ϱ ^ > ^ D/> /ZͿ ^ > ^ й, ' Ͳϯй ^ĞƉ ϭϯ ϳ ϴϳ ĞĐ ϭϯ ϭϳ ϯϱ DĂƌ ϭϯ ϰϭ ϴϱ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ϴϯ Ϭϱϰ ϯ ϭϭϯ ϬϬϯ ϰ ϭϰϭ ϮϬϰ ϴ DĂƌ ϭϰ ϵϰ ϰϰ :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ ϰϰϱ ϰϭθ Ϭ DĂƌ ϭϱ ϭϯϲ Ϭϰ :ƵŶ ϭϱ ^ĞƉ ϭϱ ĞĐ ϭϱ DĂƌ ϭϲ ϭϱϱ ϱϱ нϯϯй нϯϯй ϱϭθ Ϭϭϰ Ϭ нϭϰй ϱθϲ ϭϯϭ Ϭ нϭϱй ͲϭϬ ϵй ͲϭϬ Ϭй Ͳϯ ϴй нϲϱ ϳй Ϯϱϭ Ϯϵϯ ϯϭϰ ϯϰϲ ϯθϯ ϰϭθ ϯθϵ ϰϳϯ ϰθϭ ϱϭθ ϱϳϭ ϲϱϭ ϲϳϯ ϳϭϳ ϳϴϮ ϳϴϰ ϴϬϵ ϴ^, Z ^, > z &h ^ ϰϯd ϰϰd ϰθd ϰϲd ϰϳd ϰϱd ϰϵd ϰϱd ϱϭd ϱϯd ϱϯd ϱϳd ϱϱd ϱθd ϲϭd ϲϲd ϲϯd ϱϳd W^ й ^hzwz/^ ϰ&h ^ Ϯϯϳ Π ϮϬϭϳ t/>>/ D KΖ /> н K / :ƵŶ ϭϲ ^ĞƉ ϭϲ ϱϯ ϯϭğ ĞĐ ϭϲ ϲϱ ϳϰĞ DĂƌ ϭϳ ϯϳ ϵϯğ W ϯϳ ϮϬϭϳ Ɛƚ Ϯϲ Ϭ ϭϰθ ϱ<ğ ϱͳljƌ,ŝőś ϯϰ Ϭ ϭϳϲ ϲ<ğ ϱͳljƌ >Žǁ ϭϭ Ϭ нϭϵ ϳй ǀƐ /ŶĚ ǀŐ ϯ Ϭdž ϴϰϱ ϴϴϯ ϵϯϯ ϱϱd ϱϱd ϱϳd DĂƌƵƟ ^ƵnjƵŬŝ /ŶĚŝĂ Dh /Ϳ tğğŭůlj ĂƐ ŽĨ tğě :ĂŶƵĂƌLJ Ϯϱ ϮϬϭϳ Ĩ tğě :ĂŶƵĂƌLJ Ϯϱ ϮϬϭϳ The share of first-time buyers has increased to 50% currently from 42% two years ago. The demand for the Baleno, Brezza, and ew Dzire models continues to remain strong. These models have a healthy waiting period of three to four months. SUV sales volume grew 28% y/y, accounting for 16% of total sales volume in Q3 FY Management stated that there is steady progress with the development of its Gujarat plant, which will add 1M units to total capacity by It also expects the FY 2018 run-rate to be closer to 150,000 units per annum. ooking Forward Maruti sold 1.3M vehicles in India from The Company has a sales target of 2M vehicles by The Company aims for a market share of 50% by FY 2018, led by its wider product portfolio, superior distribution network compared with its peers, and low cost of ownership. ccording to management, it also plans to expand the number of exa outlets to 400 by ext Catalyst: The Company s Q4 FY 2018 results are expected to be released on pril ocal Code: I:MRUTI Bloomberg Symbol: MSI:I ISI: I585B01010

60 Maruti Suzuki India IDI MRUTI SUZUKI IDI (MUD.I) S UTO MUFCTURRS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC MRUTI SUZUKI IDI IMITD IS HODIG COMPY. TH 800, TO K10, WGO R, CRIO, RITZ, SWIFT, DZIR, RTIG, PRIC = COMPY IS GGD I TH MUFCTUR, PURCHS D S OF OMI, CO, GYPSY D CIZ. ITS SRVIC OFFRIGS ICUD 10 X PS MOTOR VHICS, COMPOTS D SPR PRTS (UTOMOBIS). MRUTI FIC, TRU VU, MRUTI GUI PRTS, MRUTI TH OTHR CTIVITIS OF TH COMPY COMPRIS FCIITTIO OF GUI CCSSORIS, MRUTI SUZUKI UTO CRD D MRUTI PR-OWD CR SS, FT MGMT D CR FICIG. ITS DRIVIG SCHOO. IT HS PPROXIMTY FIV PTS, OCTD I GOGRPHIC SGMTS ICUD TH DOMSTIC SGMT, WHICH PM GURGO ROD, GURGO, HRY, D T MSR 2600 ICUDS SS TO CUSTOMRS OCTD I IDI, D TH IDUSTRI TOW, GURGO, HRY, WITH ISTD OVRSS SGMT, WHICH ICUDS SS TO CUSTOMRS OCTD CPCITY OF OVR 1.5 MIIO VHICS PR YR OUTSID IDI. TH COMPY'S PRODUCT PORTFOIO ICUDS TO U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR 2.72T SS IR BI IDI PS RTIG IC IR8991(OH -10%) Up 54.94% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % (1 STBIITY) +15% %(11 STBIITY) +13% COMPOSIT RTIG IVT T/O 17.1x DBT % %: 0%: 0% %: 28%: 26% TX RT : : BCKOG X '17 BK.V R&D 0.4% 75(0.8%) DIV GR RT+55% (25) DIV BT 0.93(24) PH 0.08(0.07) IBOM % Global Focus M IR B VOUM 7M MR Q 169% BOV ST. PS (IR) % % 7.5% % CHG SS(BI IR) % CHG MRGI FTR TX 6.4% % % 9.5% % % 11.0% FUD/SHRS (000) / / / / / / / / / / /55239 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: uto Manufacturers /55118 SP / /55031 DC 16 MR 17 JU Q '13-18 P..'S OW OW HI ST /56M JU 17 FOR IFORMTIO, C OR VISIT M RTUR O QUITY T4Q P OW-HIGH 4M 3M SP 17 DC 17 11X 31X 30X MR 18 TM DTGRPHS 2/2/2018

61 TURKY Tofas Turk Otom.Fabk. Source: Corporate Website Good earnings estimate revised up Strong earnings and sales growth rates over last three years Shares under accumulation from up/down volume ratio over 1 Improving Datagraph Rating from eight weeks ago Clears cup-with-handle base 40-week M Tofas Turk (TO.TR) is one of the leading passenger car (PC) and light commercial vehicle (CV) manufacturers in Turkey. The Company expects to benefit from increasing demand for the Fiat gea. 10-week M Good /D Rating and RS line close to new highs Company Overview The Company is jointly owned by Koç Holding and Fiat Chrysler utomobiles (FC), each holding a 37.8% stake. The Company represents six brands such as Fiat, lfa Romeo, ancia, Jeep, Maserati, and Ferrari in its domestic market revenue by product segment: CV, 50%; PC, 50%. O eil Methodology Revenues and PS grew at an average annual rate of 37% and 20%, respectively, over the last three years. Consensus estimates call for PS growth of 19% and 14%, y/y, in 2017 and 2018, respectively. In Q3 2017, the Company s revenue growth was 22% y/y, slightly above consensus estimates, driven by 39% y/y growth in domestic sales. BITD and net profit grew 47% and 35%, y/y, respectively, both above consensus estimates. Management revised its 2017 guidance. It now expects domestic sales volume of 0.120M 0.130M units in 2017 (previously 0.115M 0.125M), compared with 0.112M units in xport sales volume of 0.280M 0.300M units is expected in 2017, compared with 0.280M units in Growth Drivers The Company s Fiat gea model, also known as Fiat Tipo in the uropean markets and Dodge eon in Mexico, was well received. s of 2016, Fiat gea/tipo was the best-selling car in Turkey, with 35,000 units. Increasing institutional ownership Domestic revenues increased 57% y/y in Q3 2017, driven by 39% y/y volume growth and increases in domestic vehicle prices. Domestic revenue per vehicle increased 13% y/y. To meet the growing demand for its gea model, the Company plans to manufacture at least 580,000 sedans and 700,000 hatchbacks and station wagons from It also announced a capacity expansion of 50,000 units per year in With this expansion, the number of units produced will increase 13%. The Company has been witnessing strong demand from urope, mainly Italy and Spain, which together, as of June 2017, accounted for 47.5% of total exports. In Q2 2017, exports to urope grew 22% y/y. ooking Forward The Company will continue its pace of export going forward. It plans to export more than 30% of sedans and an even higher number of hatchbacks and station wagons. s a part of its Doblo merica project, Tofas plans to export 175,000 units to orth merica, from ext Catalyst: The Company s Q results are expected to be released on February 6, ocal Code: TR:TOSO Bloomberg Symbol: TOSO:TI ISI: TRTOSO91H3

62 Tofas Turk Otom.Fabk. TOFS TURK OTOM.FBK. TURKY (TO.TR) IST UTO MUFCTURRS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC TOFS TURK OTOMOBI FBRIKSI S (TOFS) IS TURKY-BSD OFFRS COSUMR FICIG D FR MS OTO TICRT S, WHICH PRIC = COMPY, WHICH MUFCTURS, XPORTS D SS PSSGR IS GGD I TH TRDIG OF UTOMOBIS D SPR PRTS. 10 X PS CRS D IGHT COMMRCI VHICS UDR ICSS OF FIT TOFS'S MUFCTURIG FCIITIS R OCTD T BURS. TOFS CHRYSR UTOMOBIS SP (FIT). TOFS, WHICH IS JOIT UDRTKS TH RPRSTTIO OF TH FOOWIG BRDS I TH VTUR OF KOC HODIG S D FIT, SO PRODUCS VRIOUS DOMSTIC MRKT: FIT, F ROMO, CI, JP, MSRTI UTOMOTIV SPR PRTS USD I ITS UTOMOBIS. ITS D FRRRI. SUBSIDIRIS ICUD: KOC FIT KRDI FISM S, WHICH U W K Y PS TRY (DC.) CF/SHR TRY PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TRY) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP TRY 15.78BI. SS TRY17.16 BI TURKY PS RTIG 41 TRY31.56(OH -8%) Up 22.14% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(10 STBIITY) +37% %(12 STBIITY) +22% COMPOSIT RTIG IVT T/O 16.9x 81 DBT % %: 99%: 101% : : TX RT : : BCKOG R&D 0.2% DIV 0.65(0.0%) DIV GR RT+6% (25) BT 0.66(21) PH TKT Global Focus M TRY D VOUM 4M 2M SP Q -53% BOW ST. PS (TRY) % CHG SS(BI TRY) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 6.0% +21.9% % % 8.0% +27.1% % % 7.4% +26.6% % % 7.5% +26.4% % % 7.9% +27.7% % % 9.6% +35.1% % % 7.6% +34.9% % % 6.9% +35.7% % 8.9% +39.2% % 6.6% +37.6% / / / / / / / / / / /53957 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 Consumer Cyclical: uto Manufacturers DC Q % 8.7% +34.4% DC 13 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. 1M % 6.7% +37.7% /54156 SP % 5.9% +35.0% % 6.4% +37.7% % 6.9% +36.8% '13-18 P..'S 337/ / / / /58677 DC 16 MR 17 JU 17 SP 17 DC 17 FOR IFORMTIO, C OR VISIT % % 7.5% +37.2% OW OW HI ST 10X 17X MR 18 TM DTGRPHS 2/2/2018

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Strategic acquisitions should continue to drive profitable revenue growth of the Company. Company Overview Motherson is the largest manufacturer of automotive wiring harnesses in India, with more than 65% of domestic market share in the passenger car segment. Its rear-view mirror division has a market share of 53% in the Indian market and 22% in the global market. The Company has more than 200 manufacturing facilities in 37 countries across various product lines in the automotive component industry. Motherson supplies products and services to well-known automobile companies, such as BMW, Ford, Mercedes-Benz, Renault, issan, and Maruti Suzuki, among others. O eil Methodology In Q2 FY 2018, Motherson s revenues grew 33% y/y to IR 133.3B, slightly below consensus estimates of IR 135.3B, driven by 36% y/y sales growth in international markets and higher contribution from its newly subsidiary, The Company s net profit grew 24%acquired y/y in Q2 FY 2018.PKC. It generated about 87% of total revenues from international operations. In Q2 FY 2018, the Company s BITD grew 31% y/y while its BITD margin declined 80bps to 8.8%, lower than estimates of 9.8%. Over the past three years, PS has grown 26%. The Company s PS Rank stands at 78. Consensus estimates have the Company s FY 2018 and FY 2019 PS growing 43% and 29%, y/y, respectively. ϲϭ ϱϭ ϰϲ ϰϯ ϯθ ϯϰ ϯϭ Ϯϲ Ϯϰ ϮϮ Solid PS and revenue growth >/ sk>hd ϰϵd ϯϱd Ͳϱй ϮϭD ϲ ϲd Ɖ ϭϭ ĞĐ ϭϭ &/ / >^ Ϭ ϭθ W^ /ZͿ ͲϬ ϭϵ DĂƌ ϭϯ ϭ ϰϳ :ƵŶ ϭϯ Ϭ Ϭϲ ^ĞƉ ϭϯ ϭ Ϭϰ ĞĐ ϭϯ Ϭ ϳϴ DĂƌ ϭϯ ϭ ϰϲ :ƵŶ ϭϯ Ϭ ϱϱ ^ĞƉ ϭϯ ϭ Ϭϲ ĞĐ ϭϯ ϭ ϴϵ DĂƌ ϭϰ Ϯ Ϯϵ :ƵŶ ϭϰ ϭ Ϯϰ ^ĞƉ ϭϰ Ϭ ϳϵ ĞĐ ϭϰ ϭ ϵϯ DĂƌ ϭϱ Ϯ ϱϳ :ƵŶ ϭϱ Ϯ ϬϮ ^ĞƉ ϭϱ Ϯ ϭθ ĞĐ ϭϱ Ϯ ϯϱ Ͳϳϯй ͲϭϮϯй W^ й, ' ϵϭϭ Ϭ ϯϳ ϳϮϯ ϰ ^ > ^ D/> /ZͿ нϯϳй ϲϯ ϲθϯ Ϯ Ͳϴϴй ϲϯ ϳϳϮ ϰ нϰϳθй ϱθ ϬϬϱ ϱ нϱϭϭй ϲϲ ϲϯϱ ϵ Ͳϭй ϲϯ ϳϭϮ ϴ нθϭϳй ϳϬ ϴϮϲ Ϭ нϯй ϳϮ ϰϯϭ Ϭ нϭϰϯй ϳϵ ϴϴϲ ϳ нϱϳй ϴϭ ϭϯϲ ϯ нϭϯϱй ϴϯ ϵϭϱ ϰ ͲϮϱй ϴϬ ϭϲϲ ϲ нϯй ϵϭ ϰϵϯ ϱ нϭϯй ϵϰ ϳϰϯ ϯ нϲϯй ϵϭ ϰϲϭ ϵ нϭϳϲй ϴϴ ϳϮϭ Ϭ нϯϯй ϵϰ ϰϯϯ ϭ нϭϳϱй нϭϳϲй нϭϱϯй нϳϳй Ϭй нϭϯй нϯϱй нϯϭй нϯϳй нϭθй нϭϭй нϭϭй нϯϭй нθϭй ^ > ^ й, ' W^ й ^hzwz/^ ϭϭϰ ϭϭϲ &h ^ нϭϳ ϯй нϯϰ Ϭй Ͳϯϳ ϱй нϭϱй нϭϳй нθй нϭϳ ϯй нϭθ ϳй нθϭ Ϭй DĂƌ ϭϲ ϯ ϭϯ :ƵŶ ϭϲ Ϯ Ϯϯ нϯϯй нϭϭй ϵϵ ϱϯϭ ϰ ϭϭϰ ϱϭϯ ϴ нϯй нϱй нϭϲй Ͳϵ Ϭй нϯϭ ϯй Ͳϵ ϴй ^ĞƉ ϭϲ Ϯ ϲϳ ĞĐ ϭϲ ϯ Ϭϳ DĂƌ ϯ ϴϰĞ нϯϯй нϯϭй ϭϭϭ ϯϲθ ϵ ϭϭϲ ϬϰϬ ϵ нϯϯйğ ϭϯϳ Ϯ<Ğ нϭϰй нϭϯй нϲ ϱй ϭϭϯ ϭϭϯ ϭϯϯ ϭϰϱ ϭϱϭ ϭϱϵ ϭϲϲ Ϯϭϳ Ϯϲϯ Ϯϴϲ ϯϯϱ ϯϳϯ ϯϵϵ ϰϯϯ ϰϯϵ ϰϭϳ ϯθϯ ϯϵϭ ϰϯϲ ϰϳθ Ϭ ϱϭθ ϭϵϵd ϮϬϯD ^, Z ^, > z &h ^ ϮϭϬD ϮϯϰD ϮϰϭD ϮϯϰD ϮϯϭD ϮϮϮD ϮϭϭD ϭϵϱd ϭθϭd ϭϳϯd ϭϲϲd ϭϳϯd ϭϳϭd ϭϱϯd ϭϰϳd ϭϱϯd ϭϱϯd ϭθϯd ϮϭϯD Π ϮϬϭϳ t/>>/ D KΖ /> н K / нϯθйğ W ϯϯ ϮϬϭϴ Ɛƚ Ϯϰ Ϭ ϱͳljƌ,ŝőś ϱϯ Ϭ ϱͳljƌ >Žǁ ϭϵ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϵdž DŽƚŚĞƌƐŽŶ ^Ƶŵŝ ^LJƐ D^z /Ϳ tğğŭůlj ĂƐ ŽĨ tğě DĂƌĐŚ Ϭϭ ϮϬϭϳ DĂƌĐŚ Ϭϭ ϮϬϭϳ Growth Drivers Motherson entered into an agreement to acquire the Finland-based wiring harness and components producer PKC Group for about $614M in February The Company s wiring harness division has been strengthened by this acquisition. The Company plans to open three new facilities in Hungary, two each in India and South Korea, and one each in the U.S., Germany, and China, by FY These facilities will produce wiring harness, polymer products, door panels, exterior mirror, /B/C pillars, bumper, wheel covers, roof spoilers, and rocker panels. s of September 2017, the Company s total order book stood at IR 1.172T, including orders worth IR 189B obtained in H1 FY ooking Forward The Indian auto-component industry is set to become the third-largest globally by Indian auto-component makers are well positioned to benefit from the globalization of this sector, as export potential could grow 4x to $40B by Motherson targets revenues of $18B by FY 2020, as compared with $8.3B in FY Capex guidance for FY 2018 is IR 18B 20B ocal Code: I:MOTHRSUM Bloomberg Symbol: MSS:I ISI: I

64 Motherson Sumi Sys. IDI MOTHRSO SUMI SYS. (MSY.I) S UTO/TRUCK-ORIGI QP 2.11B 1.58B SHRS RIGS BUSISS: MGMT owns SC MOTHRSO SUMI SYSTMS IMITD IS SYSTM SOUTIOS VTITIO D IR CODITIOIG (HVC) MODUS, PSTIC PRIC = PROVIDR TO UTOMOTIV D OTHR IDUSTRIS, OFFRIG MODD COMPOTS D BRSS TRMIS, D O-UTOMOTIV, 10 X PS SRVICS FROM DSIG D PROTOTYPIG TO PRODUCTIO D WHICH ICUDS PRODUCT CTGORIS, SUCH S WIRIG HRSS, DIVRY OF SOUTIOS CROSS RG OF PRODUCTS. TH PSTIC COMPOTS FOR WHIT GOODS, HOUSHOD WIRS, PTS COMPY'S SGMTS R UTOMOTIV, WHICH ICUDS PRODUCT D ROBI. IT SO HS PRSC I RG OF OTHR CTGORIS, SUCH S WIRIG HRSS, HIGH TSIO CORDS, POYMR, R-TIMR IGHT DVIC, STOMR D MT-BSD 110 WIR, PSTIC COMPOTS, RUBBR COMPOTS, COCKPIT PRTS D SYSTMS. TH COMPY CTRS TO RG OF SSMBY, SCUFF PTS, THRMO-FORMD PRODUCTS, MOD FOR CUSTOMRS I TH UTOMOTIV D OTHR IDUSTRIS CROSS 100 WIRIG HRSS COMPOTS D MOD PRTS, HTIG, SI, UROP, TH MRICS, USTRI D FRIC U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP IR BI. SS IR BI IDI PS RTIG 77IR352.05(OH -11%) PRIC SC 1300 Up 45.97% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % (7 STBIITY) +12% %(12 STBIITY) +14% COMPOSIT RTIG IVT T/O 13.9x DBT % %: 109%: 114% %: 23%: 30% TX RT : : BCKOG X '17 BK.V R&D DIV 1.33(0.4%) DIV GR RT+36% (19) BT 1.29(25) PH 0.07(0.05) IBOM % Global Focus M IR D /2 3/2 3/2 50 VOUM 50 M 30 M 20 M SP Q -59% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 3.1% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /310M DC % % 3.7% +29.1% /288M MR % % 2.0% /268M JU % % 1.3% +26.5% /256M SP % % 2.8% /247M DC % % 3.6% +27.4% % % 3.0% /255M MR /253M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: uto/truck-original qp % % 3.3% +31.8% /226M SP % % 3.3% /216M DC % % 4.3% /226M MR % % 2.9% /224M JU % % 3.6% +24.4% /270M SP % % 3.9% /326M DC % % 4.2% +24.5% /335M MR % % 2.1% 508/337M JU '13-18 P..'S OW OW HI ST 526/346M SP 17 DC Q +35% FOR IFORMTIO, C OR VISIT % % 3.2% +19.6% 8M 5M DC 17 18X 48X 53X MR 18 TM DTGRPHS 2/2/2018

65 IDI Sundram Fasteners Strong estimates Strong prior move from base reset Clean break out to new highs from second stage base Fastener Source: Corporate Website Sundram Fasteners (SFM.I) manufactures high tensile fasteners, motor vehicle parts, and accessories. The Company is growing through the expansion of its auto component manufacturing and a growing fastener market. Company Overview The Company s products include cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, hubs and shafts, and iron powder. It has 11 manufacturing plants, mostly in South India, and factories in China, the U.K., and Germany to meet global demand. The Company holds a leadership position in the Indian fasteners market, with a 40-50% share. Its clientele include industry leaders such as shok eyland, M&M, Tata Motors, Daimler, and Siemens. O eil Methodology In Q3 FY 2018, the Company reported net revenue and PS growth of 20% and 21%, y/y, respectively, driven by increasing production of passenger and utility vehicles. During the quarter, BITD grew 17% y/y, while BITD margin declined to 17.7%. The Company has an excellent PS Rank of 95 due to a sharp turnaround in earnings growth over the last year. et income grew at an annual average rate of 22% from FY Consensus estimates have FY 2018 and FY 2019 PS growing 19% and 21%, y/y, respectively. Growth Drivers sia s industrial fastener market is expected to reach $44B by Growing automotive demand, in light of the increasing disposable income of consumers, is expected to propel the demand for industrial fasteners over the next five years. 10-Week M 40-Week M Heavy support at earlier stage base for an upside move Strong upside volume currently R/S at highs with best /D rating Per India s credit rating organization, the Indian auto component industry is expected to grow 8-10% from FY , based on higher localization by OMs, higher component content per vehicle, and rising exports from India. conomic growth and rapid industrialization in China, India, Malaysia, Vietnam, and Thailand is anticipated to stimulate investments for construction, which in turn is likely to boost the outlook for the industrial fastener market. India is becoming a hub for auto components manufacturing, with major global auto companies such as Volkswagen, Suzuki, General Motors, and Mercedes setting up bases in India. ooking Forward India s auto component makers are well-positioned to benefit from the globalization of the sector, as potential exports could increase 4x to $40B by xport growth should improve with increasing demand in the U.S. market. The uto Components Manufacturers ssociation forecasts that the Indian auto components industry will reach $100B by FY 2020, indicating a huge scope for the auto components industry. ext Catalyst: The Company s Q4 FY 2018 results, likely to be announced on May ocal Code: I:SUDRMFS Bloomberg Symbol: SF:I ISI: I

66 Sundram Fasteners IDI SUDRM FSTRS (SMF.I) S UTO/TRUCK-ORIGI QP M 90.36M SHRS RIGS BUSISS: MGMT owns SC SUDRM FSTRS IMITD IS HODIG COMPY. TH COMPY TSI FSTRS PRODUCT RG ICUDS STDRD FSTRS PRIC = IS GGD I MUFCTURIG HIGH TSI FSTRS, D D SPCI FSTRS. TH COMPY'S POWDR MT PRTS 10 X PS MOTOR VHIC PRTS D CCSSORIS. ITS PRODUCT RG PRODUCT RG ICUDS BUSHS, STRUCTUR PRTS D IRO ICUDS COD XTRUDD PRTS, POWDR MT PRTS, RDITOR POWDR. TH COMPY'S RDITOR CPS PRODUCT RG ICUDS CPS, GR SHIFTRS, HOT FORGD PRTS, PRCISIO FORGD MT D YO CP SSMBIS FOR ORIGI QUIPMT DIFFRTI GRS, WTR PUMPS, OI PUMPS, FU PUMPS, BT MUFCTURRS. TH COMPY'S HOT FORGD PRODUCTS ICUD TSIORS, ROCKR RM SSMBIS, CM FOOWRS, BRIG COCTIG RODS, UG GRS FOR MOTORCYCS, HOUSIGS, HUBS D SHFTS, TPPTS D OTHR GI COSTT-VOCITY JOIT PRTS, F HUBS, BV GRS D COMPOTS, D VV TRI PRTS. TH COMPY'S HIGH FU IJCTIO PUMP PRTS U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(22 STBIITY) +6% %(20 STBIITY) +5% COMPOSIT RTIG IVT T/O 5.9x 60 X-DIV FOT MKT IR BI. CP SS IR32.90 BI IDI PS RTIG IC IR513.60(OH -14%) Up 44.68% Since ddition0ibom500 PRIC SC % Global Focus M IR DBT % %: 18%: 12% 28%: 10%: 26% TX RT : : BCKOG X '17 BK.V R&D 0.4% 4.7(0.9%) DIV GR RT+24% (24) DIV BT 1.26(14) PH 0.08(0.04) C VOUM 3M 900 K 500 K 200 K PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % % % % 4.4% +15% 4.2% +3% 3.9% +1% 10.3% '13-18 P..'S OW OW HI ST RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /25189 DC /25866 MR /26348 JU /28813 SP /30096 DC /30698 MR 15 54/31810 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: uto/truck-original qp /31933 SP /31673 DC /31769 MR /31207 JU /30490 SP /28164 DC /28101 MR /26848 JU 17 FOR IFORMTIO, C OR VISIT SP 17 DC 17 6X 32X 34X MR 18 TM DTGRPHS 2/2/2018

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Kakao became the largest shareholder in 2016, through a 76.4% acquisition of the Company. Growth Drivers MelOn accounted for approximately 70% of revenues in Q and is the Company s main growth driver. s of September, MelOn had 6M MU. <Zt нϯ ϱϭϭ ϭϭϭ< ϴϬ< Rising P/T margins Source: Corporate Website O eil Methodology The Company s PS Rank of 93 is due to strong PS growth over the past few quarters. Revenues and PS grew an average of 21% and 19%, respectively, over the past three years. Consensus estimates have the Company s PS growing 27% and 26% in 2017 and 2018, respectively. O reported better-than-expected Q revenues of KRW 151.3B (beat by 6%), up 37% y/y, and PS growth of 28% y/y. In January 2016, O s majority stake was acquired by Kakao, the leading mobile messenger service in Korea with about a 90% market share. ϭϭϱ< ϭϭϭ< ϵϭ< ϵϯ н Company Overview The Company s products include compact discs, albums, and online music services. It distributes K-pop content through its K-pop channel brand 1thek. O has a partnership with SK Telecom, Korea s largest mobile telecommunications provider. Online music sales make up more than 80% of the Company s total revenues. Q revenue by segment: MelOn (B2C), 68%; physical goods (CD), 15%; distribution (B2B), 12%; other (artist management), 5%. WZ/ Trading at secondary enry ϭϵϭ< after breaking out of two- ϭϳϭ< year consolidation ϯϭ< Relative Strength at highs with rising R/S and /D ratings Ϯϲ< Ϯϰ< ϮϮ< ϭϵ< ϭϳ< ϭϱ< Strong volume supporting move higher ϭϯ< ϭϯ< ϭϭ< ϭϭ< ϵϭϭϭ Strong current quarter revenue and PS growth ϴϬϬϬ ϳϬϬϬ >K' sk>hd ϴϬϬ< ϰϭϭ< ϮϬϬ< нϰϯй ϭϭϭ< ϲϵ ϴ< ƵŶ ϭϯ ^ĞƉ ϭϯ &/ / >^ Ϭ Ϯϱ Ϭ Ϯϲ W^ ϬϬϬ <ZtͿ ĞĐ ϭϯ Ϭ ϭϱ DĂƌ ϭϯ Ϭ Ϯϰ :ƵŶ ϭϯ Ϭ Ϯϰ ^ĞƉ ϭϯ Ϭ ϰϯ ĞĐ ϭϯ Ϭ ϰϱ DĂƌ ϭϰ Ϭ ϰϳ :ƵŶ ϭϰ Ϭ ϰϳ ^ĞƉ ϭϰ Ϭ ϱϭ ĞĐ ϭϰ Ϭ ϯϱ DĂƌ ϭϱ Ϭ ϰϯ :ƵŶ ϭϱ Ϭ ϰϵ ^ĞƉ ϭϱ Ϭ ϱϰ ĞĐ ϭϱ Ϭ ϱϯ DĂƌ ϭϲ Ϭ ϲϭ :ƵŶ ϭϲ Ϭ ϲϰ ^ĞƉ ϭϲ Ϭ ϲϰ ĞĐ ϭϲ Ϭ ϲϭ DĂƌ ϭϳ Ϭ ϳϯ :ƵŶ ϭϳ Ϭ ϳϵ ^ĞƉ ϭϳ Ϭ ϴϮ Ͳϭϭй нϰϰй W^ й, ' ϰϲ Ϭ ϰϳ ϭ ^ > ^ /> <ZtͿ ͲϮϱй ϰθ Ϭ Ͳϭϰй ϱϭ ϱ Ͳϰй ϱϰ ϴ нϲϱй ϳϮ ϴ нϯϭϭй ϳϰ ϱ нϵϲй ϳϳ ϰ нϵϲй ϳϳ ϭ нϭϵй ϴϯ ϲ ͲϮϮй ϴϱ ϭ Ͳϵй ϳϴ ϯ нϰй ϴϳ ϲ нϲй ϵϭ ϲ нϱϭй ϭϭϭ ϭ нϰϭй ϵϲ ϱ нϯϭй ϭϭϭ ϰ нϭϵй ϭϭϭ ϲ нϭϯй ϭϯϯ Ϯ нϯϯй ϭϯϯ ϲ нϯϯй ϭϯϰ ϵ нϯθй ϭϱϭ ϯ нϭϱй нϭϵй нϱϰй нϱϱй нϱϯй нϰϭй нϭϱй нϭϰй нϭй нϭϰй нϭϭй нϭθй нϯϯй нϯϲй нϯϭй нϯϯй нϯθй нϯϯй нθй нϵй ^ > ^ й, ' нϯϭ ϱй W^ й ^hzwz/^ ϭϭ Ϯϯ ϭϵ &h ^ ϲ Ϯϱϱ ϯϯθ Ϭϲϰ ϱϭϲ ϯϲθ ^, Z ^, > z &h ^ Ͳϳ ϱй Ϯϭ ϮϬ ϱϭϱ ϭϯϵ ϰϰϲ ϭϲϭ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭϯ ϯϭ ϯϳ ϲθ ϭϭϱ ϭϭϱ ϭϭϵ ϭϭϯ ϭϰϭ ϭϯϱ ϭϰϱ ϭϰϳ Ϯϴϰ ϴϬϭ ϭ ϯϱϲ ϲθϲ ϭ ϰϭϲ ϲϰϯ ϭ ϱϯϭ Ϭϵϭ ϭ ϱϳϯ ϭϭϲ ϭ ϴϳϳ ϰϲϱ Ϯ Ϯϯϵ ϲϰϰ Ϯ ϰθθ ϲϯϯ Ϯ ϵϯϭ Ϭϰϵ Ϯ ϳϯϯ Ϭϱϰ Ϯ ϱϵϳ ϭϯϭ Ϯ ϴϰϭ ϭϲϯ ϭϰϳ ϭϱϭ нϯϳй Ͳϱ ϴй ϭϲϱ ϭϲϯ ϭϲϭ ϯ Ϭϱϵ ϮϮϵ ϯ ϯϯϯ ϲϯϯ ϯ ϲϳϱ ϵϱϯ ϯ ϯθϯ ϱϵϯ ϯ ϯϲϭ Ϭϭϯ W ϯϳ ϮϬϭϴ Ɛƚ Ϯϵ Ϭ ϮϬϭϵ Ɛƚ Ϯϰ ϲ ϱͳljƌ,ŝőś ϱϱ ϱͳljƌ >Žǁ ϭϭ ǀƐ /ŶĚ ǀŐ Ϭ ϲdž >ŽĞŶ ŶƚĞƌƚĂŝŶŵĞŶƚ z D <ZͿ tğğŭůlj ĂƐ ŽĨ DŽŶ ŽǀĞŵďĞƌ ϮϬ ϮϬϭϳ ŽǀĞŵďĞƌ ϮϬ ϮϬϭϳ pproximately 30M domestic users subscribe to MelOn. Since 2010, subscriber count has been growing steadily by more than 10% annually. s of Q3 2017, MelOn had 4.4M paid subscribers, up 16% y/y. et growth of paying users has accelerated for the past three quarters, from 120,000 in Q1 and 130,000 in Q2 to 150,000 in Q Unique visitors and paid subscriber growth are expected to accelerate due to access to the app KakaoTalk s 40M MU, which is about 10x greater than O s paid-user base. It also provides huge cross-selling opportunities. ccording to the Korea Creative Content gency, the domestic market for digital music services had a CGR of 19% from 2001 to 2016, reaching KRW 1.5T. ooking Forward South Korea s digital music market is currently estimated to be worth $272M. It is expected to have a CGR of 7% by 2021, reaching $362M. The market s largest segment, music streaming, accounted for 96% of total market volume. Current digital music user penetration in South Korea is about 19%, expected to reach 33% by The Company s Q earnings is expected to be released on February 9, ocal Code: K Bloomberg Symbol: :KS ISI: KR

68 oen ntertainment SOUTH KOR O TRTIMT (YBM.KR) KRX ISUR-MOVIS & RTD 25.29M U W K Y PS (000 DC.) CF/SHR (000) KRW PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI KRW) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK M SHRS RIGS BUSISS: MGMT owns SC O TRTIMT, IC. IS KOR-BSD COMPY GGD I TH BRD OF MO, D BUM SGMT WHICH PS, PRIC = MUFCTURIG D DISTRIBUTIG BUM. ITS MI PRODUCT IS MUFCTURS D DISTRIBUTS BUMS. 10 X PS COMPCT DISC USD FOR ISTIG TO MUSIC TH COMPY OPRTS ITS BUSISS THROUGH TWO SGMTS: DIGIT MUSIC SGMT, WHICH PROVIDS DIGIT MUSIC D OI MUSIC UDR X-DIV FOT MKT CP KRW 2.66T SS KRW BI KOR (SOUTH) PS RTIG 87KRW105000(OH -13%) PRIC SC Down 8.30% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (6 STBIITY) +21% %(12 STBIITY) +26% COMPOSIT RTIG IVT T/O 73.4x 91 DBT % %: 0%: 0% 23%: 24%: 25% TX RT : : BCKOG X '16 BK.V R&D DIV 1.00K(0.9%) DIV GR RT+78% (50) 0.13(0.07) BT 0.24(0) PH KORCOMP Global Focus M KRW % D VOUM 1M 700 K 400 K SP Q -53% BOW ST. PS (KRW) % CHG SS(BI KRW) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 15.3% +23.9% /1357 DC % % 15.4% +26.8% /1417 MR % % 15.3% +29.0% /1521 JU % % 15.5% +28.2% /1572 SP % % 10.4% +25.3% /1877 DC % % 14.0% +24.4% % % 14.0% +23.0% /2240 MR /2489 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: eisure-movies & Related % % 14.8% +21.8% /2931 SP % % 13.3% +22.8% /2733 DC % % 15.6% +24.3% /2597 MR % % 14.6% +24.5% /2841 JU % % 14.6% +24.1% /3058 SP % % 11.5% +23.6% /3320 DC % % 13.8% +24.6% /3658 MR % % 14.8% +24.5% /3424 JU 17 FOR IFORMTIO, C OR VISIT % % 13.7% +24.6% 163/3556 SP K 80 K DC Q % '13-18 P..'S OW OW HI ST 160/3499 DC 17 9X 37X 55X MR 18 TM DTGRPHS 2/2/2018

69 THID tžƌŭɖžŝŷƚ ŶƚĞƌƚĂŝŶŵĞŶƚ tkz< d, &K ϮϬ dž нϲϲ Ϯϴ ϯϯϯϭϭϭ W^ ZĂŶŬ ϰθ Workpoint ntertainment d, /> džđś d,ϭϳθθϭϭϭϭϭϱ ǁŽƌŬƉŽŝŶƚ ĐŽ ƚś >ĞŝƐƵƌĞͲDŽǀŝĞƐ Θ ZĞůĂƚĞĚ ĂŶŐŬŽŬ d, /> DŬƚ ĂƉ d, ϭϵ ϰϭ ^ĂůĞƐ d, Ϯ ϳϳ ^ŚĂƌĞƐ ϰϭϳd &ůžăƚ ϭϱϰd W^ ƵĞ Ϯ Ϯϳ ϮϬϭϳĞ K, Ͳϯй D'Dd ŽǁŶƐ Triple-digit earnings expected in 2017 Minimal overhead supply tkz<wk/d d Zd /D d Wh >/ KDW z >/D/d /^ d, /> Ͳ ^ KDW z ' ' / d, WZK h d/k K& d > s/^/k WZK'Z D^ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ Ϭ ϳϭ Ϭ ϰϲ Ϭ Ϯϭ Ϭ ϰϯ Ϭ ϵϰ ϭ ϭϭ Ϭ ϳϭ ͲϬ Ϭϰ Ϭ ϯϵ W^ d, Ϭ ϰϭ ϱйź ϭ Ϭϴ ϭϲϯйÿ ^, &>Kt ^,Z d, Ϭ ϵϵ Ϭ ϳϭ Ϭ ϰϭ Ϭ ϲϯ ϭ ϭθ ϭ ϯϭ ϭ ϮϮ Ϭ ϳϴ ϭ ϳϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й Ϯϳй ϮϬй ϭϭй Ϯϭй Ϯϲй Ϯϲй ϭϱй ͲϮй ϵй ϮϬϭϰͲϭϲ Ͳϱϰй ϵϵ ^ƚăďŝůŝƚljͿ ϴй Z dhz K Yh/dz й Ϯϱй ϭϲй ϳй ϭθй Ϯϵй ϯϯй ϭй ϳй ϮϬϭϮͲϭϲ Ͳϯϱй ϵϵ ^ƚăďŝůŝƚljͿ ϳй ^ > ^ й, ' ϭй ͲϭϬй Ͳϭϲй Ϯϵй ϰϯй ϭϲй ϭй Ͳϱй ϭϲй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ d, ϭ ϯϯϭ ϭ ϭϵϯ ϭ ϬϬϰ ϭ ϮϵϮ ϭ ϴϯϱ Ϯ ϭϯϲ Ϯ ϭϲϳ Ϯ Ϭϱϯ Ϯ ϯθθ /s d K ϭϯ ϳdž ϳϰ t <>z Žǀ ϭθ Žǀ Ϯϱ ĞĐ ϬϮ ĞĐ Ϭϵ ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ d й ϮϬϭϯͲϭϱ Ϯ Ϯй ϰϯй ϮϮй d 'Z W, Z d/' ϱϵ ϲϱ ϲϯ ϲϭ ϲϳ ϳϬ ϳϳ ϳϰ ϳϲ d y Z d ϮϬϭϯͲϭϱ Ϯϱй ϭϵй ϮϮй s' />z sk> ϬϬϬͿ Ϯ ϴϬϮ Ϯ ϰϱϯ ϭ ϵθϱ ϭ ϴϵϳ ϭ ϵϭϵ ϭ ϵϭϵ ϭ ϴϭϵ ϭ ϯϰϭ ϭ ϮϳϮ <>K' ϮϬϭϯͲϭϱ < s > ϲ ϲϵdž Ζϭϱ hw Kt sk>hd ϭ ϭ ϭ ϱ ϭ ϰ ϭ ϰ ϭ ϳ ϭ ϴ Ϯ ϰ Ϯ ϱ Ϯ ϱ Z Θ Ϭ ϯϰ Ϭ ϴйͿ /s 'Z Zdнϭϰй ϳϬͿ hd /^d Z d/' Ϭ Ϭ ϯ ϯ ϭϯ ϭϳ ϭϳ ϭϳ ϮϮ /s d, ϭ Ϯϰ ϲϯ ϬϬͿ >W, ͲϬ Ϭϵ Ϭ ϬϰͿ Z > d/s ^dz 'd, ϰϰ ϰϵ ϰϭ ϮϮ ϱθ ϳϬ ϲϵ ϳϭ ϳϲ d 'ZKhW Z < ϵϯ ϵϱ ϵϱ ϵϰ ϵϯ ϵϯ ϲϭ ϵϭ ϳϮ ϮϬϭϱ DW>Kz ^ ϲϭθ ϭϯйͿ >K' &ŝdžğěͿ ϭϭϭ ϵϭ Rebounds to highs on 1.6x the average daily volume ϰϲ ϰϲ ϱϭ d, ϰϯ нϯ ϬϬ нϰ ϰϵй ϯθ ϯϰ ϯϭ ϳϲ Workpoint ntertainment (WORK.TH) is one of the leading content producers and the operator of the third most popular channel in Thailand. strong focus on launching big format programs continues to drive the Company s growth. Growth Drivers Revenues from the concerts and plays segment grew 116% y/y to THB 94M, driven by Concert The Mask Singer 2 and Khun Pha Chuay no. 7. ϳϬ ϱϭ Source: Corporate Website O eil Methodology The stock has an PS Rank of 83, owing to 19% and 157% three-year average revenue and PS growth, respectively. Workpoint is further expected to generate significant revenues by leveraging its Workpoint TV and online channels. In Q3 2017, the Company s revenues and PS grew 46% and 246%, y/y, respectively. bout 50% of total revenue growth was driven by a 45% y/y increase in revenues from Workpoint TV and 616% y/y growth from online media. In Q3 2017, revenues from the TV segment grew 44% y/y and its gross margin remained strong at 63%. The Company is expected to benefit from the better economies of scale by growing its top line, as 90% of its total costs are fixed and relatively independent of revenues, such as amortization expenses for its digital TV license, broadcast rental fees, and amortization expenses for purchased content. ϴϬ ϲϭ High up/down volume, rising /D and R/S trend Company Overview Workpoint ntertainment engages in television show production, publication, animation and computer graphics, movies, concert and plays, and event marketing. The Company is ranked the third among the 24 digital-tv channels, with viewership rising to 980,000 in February 2017 from 55,000 in pril Workpoint TV is now ahead of both 3HD and Channel 7 in Bangkok primetime in the key 15 years+ demographic, which makes it the best play on the terrestrial digital TV theme. WZ/ ϭϭϭ Ϯϲ Ϯϰ ϮϮ ϭϵ ϭϳ ϭϱ R/S line rising again ϭϯ ϭϯ ϭϭ ϭϭ ϵ ϴ ϳ ϲ ϰ ϴ ϰ ϰ ϰ Solid PS and revenue growth ϯ ϲ >/ sk>hd Increasing sponsorship ϲϯd ϰϱd ϮϳD ͲϭϬй ϱ ϯd ^ĞƉ ϭϭ ĞĐ ϭϭ &/ / >^ Ϭ Ϯϴ Ϭ Ϭϵ W^ d, Ϳ нθϳй ͲϰϬй W^ й, ' ϰϱϭ ϱ ϯϳθ ϯ ^ > ^ D/> d, Ϳ нϯϵй Ͳϳй ^ > ^ й, ' DĂƌ ϭϯ Ϭ Ϯϭ нϰϭй ϰϯϰ Ϯ нϰй :ƵŶ ϭϯ Ϭ ϯϵ Ͳϳй ϱϭϵ ϵ Ͳϭϱй W^ й ^hzwz/^ ϯ &h ^ ϯ ϰ ϭϳϯ ϳϬϬ ϰ ϭϳϯ ϳϬϬ ^, Z ^, > z &h ^ ^ĞƉ ϭϯ Ϭ ϯϵ нϯϵй ϲϭϯ Ϭ нϯϰй ĞĐ ϭϯ Ϭ ϭϯ нϯϯй ϲϭϭ Ϯ нϱϵй :ƵŶ ϭϯ Ϭ Ϯϰ Ͳϯϴй ϱϱϱ ϳ нϵй ^ĞƉ ϭϯ Ϭ ϯϭ ͲϮϭй ϲϭϭ ϱ нϭй нϭϳ ϴй Ͳϱϲ ϳй нϭϯ ϴй ϭ ϵ Ϯϵ ϯϲ ϵϲϭ ϯ ϱϰϱ ϱϭϭ ϲ ϵϲϯ ϭθϭ Ͳϰ ϰй ϰϭ ϭϰd Π ϮϬϭϳ t/>>/ D KΖ /> н K / DĂƌ ϭϯ Ϭ ϭϭ ͲϱϮй ϰϭϯ ϭ Ͳϱй ĞĐ ϭϯ Ϭ Ϭϲ ͲϱϬй ϱϵθ Ϭ Ϭй DĂƌ ϭϰ ͲϬ Ϭϭ ͲϭϭϬй ϯθϭ ϭ Ͳϲй :ƵŶ ϭϰ Ϭ Ϭϱ Ͳϳϵй ϱϭϭ Ϭ ͲϭϬй ^ĞƉ ϭϰ Ϭ Ϭϳ Ͳϳϳй ϲϯϯ ϭ нϰй ĞĐ ϭϰ ͲϬ Ϭϳ ͲϮϭϳй ϱϭϯ Ϯ Ͳϭϲй DĂƌ ϭϱ ͲϬ Ϭϳ ͲϲϬϬй ϰϯϳ ϯ нϭϯй ͲϮϮϰ ϭй ͲϮϭϲ ϯй ͲϯϴϬ Ϭй ϰϱ ϯϯ ϭϰ ϴ ϳ ϭϰ ϭϰd ϳ ϱϵϭ ϲϲϭ ϱ ϴϰϱ ϭϰϭ ϰ ϲϳϭ ϵϰϭ ϱ ϲθϵ ϰϲϭ ϲ ϰϰϱ ϳϮϬ :ƵŶ ϭϱ Ϭ Ϯϰ нϯθϭй ϲϳθ ϵ нϯϲй ^ĞƉ ϭϱ Ϭ ϭϭ нϱϳй ϲϰϭ ϱ нϭй ϰϯ ϭϯd Ͳϯϵ ϭй ϰϲ ϭϰd ĞĐ ϭϱ Ϭ ϬϮ нϭϯϵй ϲϰϭ Ϭ нϯθй DĂƌ ϭϲ Ϭ Ϭϳ нϯϭϭй ϱϰϲ ϳ нϯθй :ƵŶ ϭϲ Ϭ ϯϯ нϯϯй ϴϬϭ ϳ нϭθй ^ĞƉ ϭϲ Ϭ Ϯϲ нϭϯϲй ϳϳϲ ϱ нϯϭй ĞĐ ϭϲ W ϲϳ ϮϬϭϳ Ɛƚ ϰϯ Ϭ ϱͳljƌ,ŝőś ϴϲϭ Ϭ ϱͳljƌ >Žǁ ϵ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϰdž ϰϱ ϮϳD ϱϯ ϮϴD ϱϭ ϮϱD ϱϯ ϮϱD tžƌŭɖžŝŷƚ ŶƚĞƌƚĂŝŶŵĞŶƚ tkz< d,Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ :ĂŶƵĂƌLJ ϭϯ ϮϬϭϳ :ĂŶƵĂƌLJ ϭϯ ϮϬϭϳ BITD grew 112% y/y to THB 627M while BITD margin improved to 53.9% from 37.2% in Q In 9M 2017, net profit has already surpassed full-year consensus estimates. Workpoint TV s rating increased to 1.46% in the first nine months of 2017 from 1.33% in 2016 and 0.85% in The increasing popularity of Workpoint TV was primarily led by the success of The Mask Singer. This program has about 12M views in average per episode for Season 1 and 5M for Season 2. It has decided to go ahead with Season 3, as most of its air time has already sold at THB 420,000 per minute, on par with the drama series of Channels 3 and 7, the country s most popular programs. ew programs lined up for Q are We Kids Thailand, My ittle TV, et Me in Thailand 3, Bao Young Blood Season 2, and X-Factor Thailand. Its continuous efforts to launch new programs to gain higher ratings will allow the Company to charge higher ad rates on a sustainable basis. ooking Forward Consensus estimates have PS growing 377% and 30%, y/y, in 2017 and 2018, respectively. ext Catalyst: The Company s Q earnings are expected to be released February 11, ocal Code: TH:WORK Bloomberg Symbol: WORK:TB ISI: TH

70 Workpoint ntertainment WORKPOIT TRTIMT THID (WORK.TH) BKK ISUR-MOVIS & RTD M M SHRS RIGS BUSISS: MGMT owns X-DIV SC WORKPOIT TRTIMT PUBIC COMPY IMITD IS ITS PUBISHIG BUSISS MIY PUBISHS MGZIS D PRIC = THID-BSD COMPY GGD I TH PRODUCTIO OF POCKT BOOKS. ITS IMTIO BUSISS PRODUCS IMTIO WORK 10 X PS TVISIO PROGRMS. TH COMPY IS IVOVD I TH FOR PRODUCTIO HOUSS D THOS I TH MOTIO PICTUR PRODUCTIO OF TVISIO PROGRMS, PUBICTIOS, IMTIO IDUSTRY. ITS FIM PRODUCTIO BUSISS OPRTS FIM D COMPUTR GRPHICS, MOVIS, COCRTS, PYS D VT PRODUCTIO D IVSTMT I RTD FIDS. TH COMPY'S MRKTIG. TH COMPY PROVIDS VRIOUS TYPS OF TVISIO SUBSIDIRIS ICUD WORKPOIT PUBISHIG COMPY IMITD, PROGRMS, SUCH S GM SHOWS, SITCOMS, VRITY SHOWS D ITTIRIT HOUS COMPY IMITD, WORK POIT PICTURS COMPY CUTUR SHOWS THROUGH FR TVISIO CHS I THID, IMITD D SIX DGR PRODUCTIO COMPY IMITD ICUDIG CH 3, CH 5, CH 9, BT D THI PBS STIMT 2018 STIMT U W K Y PS THB (DC.) CF/SHR THB PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI THB) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP THB 36.44BI. SS THB3.59 BI THID PS RTIG 85 THB83.00(OH -20%) Up 78.50% Since ddition PRIC SC % % RIGS GROWTH RT SS GR RT %(22 STBIITY) +19% % COMPOSIT RTIG IVT T/O 14.2x DBT % %: 15%: 19% %: 23%: 20% TX RT : : BCKOG X '16 BK.V R&D DIV 0.76(0.9%) DIV GR RT+14% (70) BT 0.39(0) PH 0.17(0.08) BGKST % Global Focus M THB B /5 13 VOUM 9M 4M SP Q -46% BOW ST. PS (THB) % CHG SS(BI THB) % CHG MRGI FTR TX % % 4.5% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /14425 DC % +15.5% /7591 MR % % 2.3% +9.9% /5845 JU % % 4.1% +4.1% /4672 SP % +1.3% /5689 DC % % % 15.1% +3.4% % % 7.2% +4.6% #+150% % 1.2% +7.2% #+217% % 5.1% +7.2% % % 16.6% +8.2% % % 13.6% +10.4% % +6.8% % % 21.5% +11.2% % % 33.5% +18.0% % % 32.7% +25.1% Consumer Cyclical: eisure-movies & Related FOR IFORMTIO, C OR VISIT DC Q % '13-18 P..'S 41/ / / / / / / / / / /6446 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 SP 16 DC 16 MR 17 JU 17 SP 17 DC 17 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. 2M 1M 600 K OW 20X OW 69X HI 632X ST MR 18 TM DTGRPHS 2/2/2018

71 IDI WĂŐĞ /ŶĚƵƐƚƌŝĞƐ W/ϭ / W^ ϱϵ dž ϳϭϭ ϵ ϲϰϰ ϭ ϱϳϲ ϯ ϱϭθ ϱ Source: Corporate Website ϰϰϭ ϳ ϰϭϲ ϴ ϯϳϯ ϵ ϯϯϯ Ϭ Ϯϴϴ ϭ Page Industries is a manufacturer of innerwear, leisurewear, activewear, and swimwear for men, women, and children. The Company will benefit from the underpenetrated and fast-growing Indian innerwear market. Company Overview The Company is an exclusive licensee of JOCKY International Inc. (US) in India, Sri anka, Bangladesh, epal, and the U and of Speedo International td. in India. Its distribution network includes more than 50,000 retail outlets in 1,600 cities and 368 exclusive Jockey brand outlets across India. O eil Methodology The Company displays a strong fundamental profile, with average three-year sales and PS growth of 20% and 19%, y/y, respectively. arnings growth has been very consistent during this period, as reflected by Page s top-notch earnings stability factor of five. Page has a high single-digit market share in the Indian innerwear industry. This is significant given that the Indian innerwear market is largely controlled (more than 45%) by unorganized players. Shares soared 8.21% on ovember 11 on more than 6.2x average daily volume post-q2 FY 2018 earnings. In Q2 FY 2018, the Company recorded sales growth of 17% y/y. BITD increased 19.5% y/y in the quarter and net profit of IR 0.84B grew 22.4% y/y, above consensus expectations of IR0.80B. We think that the Company s growth will be supported by: 1) Its strong position in the men s innerwear segment where the Company s core brand, Jockey, enjoys strong brand equity and operates in the niche mid-to-premium segment; 2) Its ability to strengthen its foothold in segments such as kidswear, leisurewear, swimwear (Speedo brand), and women s innerwear; 3) Structural growth drivers such as growing discretionary spending, rising urbanization, and the transition of the innerwear market from functional to fashionable will remain conducive to growth. 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It is estimated to reach IR B by 2020, a CGR of 13%. Page has a larger market share in men s innerwear (50% of group s revenues) than women s. We estimate a market share in the low double digits in men s innerwear and low-to-mid single digits in women s innerwear. It is estimated that men s innerwear will account for 44% of the total innerwear industry in 2020, compared with 36% currently. This will benefit Page industries due to its large market share in men s innerwear. The women s innerwear segment (20% of total revenues) is witnessing tremendous growth and is estimated to have a CGR of 15% through Kidswear in India is expected to have a CGR of 10.7% from 2014 to ooking Forward In September, after witnessing rapid growth in demand, the Company announced plans to double its capacity to manufacture 400M pieces by The next catalyst is the Company s Q3 FY 2018 earnings announcement on February 9, ocal Code: I:PGID Bloomberg Symbol: PG:I ISI: I761H01022

72 Page Industries IDI PG IDUSTRIS (PI1.I) S PPR-COTHIG MFG 11.15M 3.68M SHRS RIGS BUSISS: MGMT owns X-DIV SC PG IDUSTRIS IMITD IS GGD I TH BUSISS OF STORS (FS), MUTI BRD OUTTS (MBO), TRDITIO HOSIRY PRIC = MUFCTURIG D TRDIG OF GRMTS. TH COMPY OFFRS STORS D MUTI-PURPOS STORS SPRD CROSS IDI. TH 10 X PS KITTD GRMTS. TH COMPY OFFRS RG OF PRODUCTS FOR COMPY HS PPROXIMTY FOUR BOS I TH UITD RB M, WOM D CHIDR. TH COMPY IS GGD I TH MIRTS D OVR O BO I SRI K. TH SPDO BRD IS MUFCTURIG, DISTRIBUTIO D MRKTIG OF JOCKY PRODUCTS VIB I PPROXIMTY 1060 STORS, ICUDIG OVR 150. TH COMPY HODS ICS OF SPDO, ITRTIO FS CROSS PPROXIMTY 110 CITIS D OVR I BOS. IT BRD FOR SWIM WR. TH JOCKY BRD IS VIB I OVR OPRTS ITS OW OI STOR ITS CITIS D TOWS. TH COMPY'S JOCKY BRD PRODUCTS PTS R OCTD I BGOR, HSS D MYSOR, MOG R SOD THROUGH XCUSIV BRD OUTTS (BO), RG FORMT OTHRS U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT 11/16/2017 CP IR BI. SS IR23.49 BI IDI PS RTIG 87 IR20053(OH -22%) Up 6.23% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(1 STBIITY) +19% %(5 STBIITY) +25% COMPOSIT RTIG IVT T/O 2.9x DBT % %: 4.6%: 6% %: 33%: 33% TX RT : : BCKOG X '17 BK.V R&D 111(0.5%) DIV GR RT+22% (9) DIV BT 0.94(9) PH 0.08(0.04) IBOM Global Focus M IR % D CURRT VOUM 200 K 80 K SP Q -50% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 11.3% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /1761 DC % % 12.4% +61.2% /1316 MR % % 14.2% /1175 JU % % 12.6% +57.4% /1104 SP % % 11.7% /1209 DC % % 12.4% +58.0% /1266 MR % % 14.0% /1168 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: pparel-clothing Mfg % % 12.9% +53.6% /1115 SP % % 11.7% /1154 DC % % 12.9% +52.1% /1099 MR % % 12.0% /1289 JU % % 12.9% +46.2% /1340 SP % % 11.9% /1408 DC % % 13.4% +44.5% /1394 MR % % 12.3% % % 13.4% +43.6% 107/1478 JU K DC Q +25% '13-18 P..'S OW OW HI ST 124/1548 SP K FOR IFORMTIO, C OR VISIT K DC 17 29X 77X 92X MR 18 TM DTGRPHS 2/2/2018

73 BRZI ƌğnjnjž /ŶĚƵƐƚƌŝĂ KŶ Z Z ZW^ Ϯ Ϯ dž ϳϳ Ϯϳ ϲθ ϭθ ϱϵ Ϭϵ ϱϰ ϱϱ ϱϭ ϬϬ ϰϱ ϰϱ ϰϭ ϵϭ ϯϲ ϯϲ ϯϭ ϴϮ нϱϱ ϯϭ ϮϭϮϭ ϭϭϭϭ W^ ZĂŶŬ ϳϲ rezzo Industria On ^ K W h>k džđś Z Z KZϯ ĂƌĞnjnjŽĐŽ ĐŽŵ ďƌ ƉƉĂƌĞůͲ^ŚŽĞƐ Θ ZĞů DĨŐ DŬƚ ĂƉ Z>ϱ Ϯϱ ^ĂůĞƐ Z>ϭ ϯϰ ĞůŽ,ŽƌŝnjŽŶƚĞ Z /> ^ŚĂƌĞƐ ϵϭd &ůžăƚ ϰϰd W^ ƵĞ ϯ ϵ ϮϬϭϴĞ IURP 3YRW Q :HHV D'Dd ŽǁŶƐ Z K / h^dz/ KD Z /K ^ /^ Z />Ͳ ^ KDW z WZ/ /W >>z ' ' / d, &KKdt Z / h^dzz d, KDW z ^W / >/ ^ / d, ^/' D h& dhz s >KWD d DK> /' ^ > K& tkd Ζ^ &KKdt Z '^ ^^KZ/ ^ DKZ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϯϱ Ϭ ϱϱ Ϭ ϳϯ ϭ Ϭϱ ϭ Ϭϵ ϭ Ϯϱ ϭ Ϯϳ ϭ ϯϱ ϭ ϯϭ W^ Z> ϭ ϱθ Ϯϭйź ϭ ϵϭ Ϯϭйź ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z Z> ͲϬ ϭϭ Ϭ ϱϵ ϭ Ϭϱ ϭ Ϭϯ ϭ Ϭϲ ϭ ϯϰ ϭ ϯϯ ϭ ϱϰ ϭ ϯϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϵй WZ d y D Z'/ й ϴй ϭϰй ϭϲй ϭϵй ϭϲй ϭϲй ϭϱй ϭϱй ϭϯй ϮϬϭϱͲϭϳ ϱй ϰ ^ƚăďŝůŝƚljͿ ϵй Z dhz K Yh/dz й ϯϰй ϰθй ϰϵй ϯϱй Ϯϯй Ϯϯй Ϯϭй ϮϬй ϭθй ϮϬϭϯͲϭϳ ϱй ϰ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϴϵй ϭϯй ϯϵй ϭϵй Ϯϳй ϭϯй ϵй ϲй ϭϭй KDW Z d/' ^ > ^ D/>Ϳ Z> ϯϲϳ ϰϭϯ ϱϳϯ ϲϳϵ ϴϲϬ ϵϲϯ ϭ Ϭϱϯ ϭ ϭϯϭ ϭ Ϯϯϵ /s d K ϲ ϭdž ϰϵ t <>z Žǀ Ϯϰ ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ϮϮ ĞĐ Ϯϵ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ ϭϱ d й ϮϬϭϰͲϭϲ ϲй ϲй ϰй d 'Z W, Z d/' ϲθ ϲϭ ϳϬ ϲϲ ϳϬ ϳϭ ϳϯ ϲϳ ϲϵ d y Z d ϮϬϭϰͲϭϲ ϯϭй Ϯϳй Ϯϲй s' />z sk> ϬϬϬͿ ϰϭϭ ϰϯϰ ϰϭϯ ϯϵϱ ϯθϯ ϯϵϱ ϰϭϲ ϯϵϳ ϯϳϱ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd Ϭ ϳ Ϭ ϲ Ϭ ϴ Ϭ ϴ Ϭ ϴ ϭ Ϭ ϭ Ϭ Ϭ ϵ Ϭ ϴ Z Θ < s > ϳ Ϯϵdž Ζϭϲ hd /^d Z d/' Ͳϯ Ͳϭϯ Ͳϭϯ Ϯ Ϯ ϭϭ ϭϵ ϭϳ ϭϲ /s Z> ϭ ϰθ Ϯ ϲйͿ /s 'Z ZdнϮϯй ϮϲͿ Z > d/s ^dz 'd, ϴϬ ϴϰ ϴϲ ϴϴ ϴϳ ϵϭ ϵϭ ϴϵ ϵϭ d ϭ ϬϮ Ϯϯ ϬϬͿ >W, Ϭ Ϯϯ Ϭ ϬϵͿ 'ZKhW Z < ϭϵ Ϯϭ Ϯϵ Ϯϵ ϯϯ ϯϲ ϯϯ ϰϯ ϯϱ ϮϬϭϲ DW>Kz ^ Ϯ Ϯϯϯ ϲйͿ K, Ͳϰй ϭϱϭ Consistent double-digit earnings growth ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ Shares are breaking out of a cup base rezzo (RZ.BR) is a leading manufacturer of women s footwear, handbags, and accessories in Brazil with a market share of about 12% as of ϴϬ ϳϬ ϲϭ Z> нϭ ϵϰ ϱϭ нϯ ϰϯй ϰϲ ttractive yield ϭϵ Ϭϵ ϰϯ ϭϳ Ϯϳ ϯθ ϭϱ ϰϱ ϭϰ ϵϵ ϭϯ ϲϰ ϯϰ ϯϭ ϭϭ ϴϮ ϭϭ ϵϭ ϭϭ ϬϬ Ϯϲ Ϯϰ ϮϮ ϵϭ ϴ ϲϰ ϭϵ ϳ ϳϯ Company Overview The Company has a portfolio of five brands: rezzo, Schutz, nacapri, lexandre Birman, and Fiever. The Company operates through 49 owned stores and 520 franchises in Brazil. Its products are also offered through 2,289 multi-brand retailers in more than 1,220 towns and cities. Q gross revenue by brand: rezzo, 57.2%; Schutz, 30.3%; nacapri, 10%; other, 2.5%. ϵϭ ϱθ ϱϰ Share have been under accumulation for six weeks ϮϮ ϳϯ ϮϬ ϵϭ WZ/ ϭϳϭ Ϯϳ Ϯϳ Source: Corporate Website >K' &ŝdžğěͿ ϭϳ ϲ ϴϮ Strong RS Rating of 90 and /D Rating of B ϱ ϵϭ ϱ ϰϱ ϱ ϬϬ ϭϱ ϭϯ ϭϯ ϭϭ ϰ ϱϱ ϭϭ ϰ Ϭϵ ϵ ϯ ϲϰ ϴ ϯ ϭθ ϳ >K' sk>hd ϮD ϵϭϭ< O eil Methodology The stock has strong technical indicators, with RS and /D Ratings of 89 and B, respectively. The Company has a five-year average earnings growth rate of 5% y/y, a stability factor of 4, and an PS Rank of 76. In Q3 2017, net revenue and net profit advanced 6.9% and 6.3%, y/y, respectively. In the quarter, gross margin and BITD margin expanded 190bps and 150bps, respectively. The Company s asset-light model and flexible value chain provide a 24% ROIC and a strong balance sheet (ended Q with R$125M net cash position). In , consensus expects a high single-digit revenue CGR and a low double-digit PS CGR. Growth will be fuelled by new brand initiatives at rezzo, nacapri and Schutz s expansion into the U.S market, and the ecommerce channel. Growth drivers The Company outsources about 90% of its production and benefits from a reduced need for investments in its installed production capacity. The Company generates 75% of sales through franchisees and multi-brand retailers. This allows it to expand its footprint rapidly with low investment. ϱϭϭ< Ͳϲϭй ϯϭϭ< ϭϯϭ ϰ< :ƵŶ ϭϯ &/ / >^ Ϭ ϯϯ W^ Z>Ϳ ^ĞƉ ϭϯ Ϭ ϯϯ ĞĐ ϭϯ Ϭ ϯϳ DĂƌ ϭϰ Ϭ ϮϬ :ƵŶ ϭϰ Ϭ ϯϲ ^ĞƉ ϭϰ Ϭ ϯθ ĞĐ ϭϰ Ϭ ϯϰ DĂƌ ϭϱ Ϭ ϮϬ :ƵŶ ϭϱ Ϭ ϯϲ ^ĞƉ ϭϱ Ϭ ϰϭ ĞĐ ϭϱ Ϭ ϯθ DĂƌ ϭϲ Ϭ ϭϳ :ƵŶ ϭϲ Ϭ ϯϰ ^ĞƉ ϭϲ Ϭ ϰϭ ĞĐ ϭϲ Ϭ ϰϭ DĂƌ ϭϳ Ϭ Ϯϱ :ƵŶ ϭϳ Ϭ ϰϰ ^ĞƉ ϭϳ Ϭ ϰϯ ĞĐ ϭϳ Ϭ ϰϳğ DĂƌ ϭθ Ϭ ϮϳĞ :ƵŶ ϭθ Ϭ ϯϳğ ^ĞƉ ϭθ Ϭ ϲϯğ нϭϰй нϯй W^ й, ' Ϯϯϳ ϲ Ϯϲϲ ϳ ^ > ^ D/> Z>Ϳ нϯй Ϯϱϳ ϲ Ͳϵй Ϯϭϯ ϰ нϵй Ϯϱϯ ϳ нϭϱй Ϯϵϲ ϭ Ͳϴй Ϯϴϵ ϲ Ϭй Ϯϯϲ Ϯ Ϭй Ϯϴϱ ϱ нθй ϯϭϱ ϭ нϭϯй Ϯϴϯ ϴ Ͳϭϱй Ϯϱϳ ϱ Ͳϲй Ϯϵϱ ϴ ͲϮй ϯϰϲ ϵ нϱй ϯϯθ ϵ нϰϳй Ϯϵϳ Ϯ нϯϵй ϯϯθ ϵ нϱй ϯϳϭ ϴ нϭϳйğ ϯϲθ ϳĞ нθйğ ϯϯϲ ϲğ ͲϭϲйĞ ϯϲϯ ϬĞ нϱϭйğ ϰϯϭ ϱğ нϭϵй нθй ^ > ^ й, ' нϭϯ Ϯй нϭϭ Ϭй D Z'/ &d Z d y нϯй нϲй нϳй нϭϭй нϭϯй нϭϭй нϭϯй нϲй ͲϮй нϵй нϰй нϭϭй нϭϵй нϭϱй нϭϭй нϳй нϵйğ нϭϭйğ нϭϭйğ нϭϯйğ нϭϯ ϳй нθ Ϯй нϭϯ ϱй нϭϭ ϯй нϭϭ ϰй нϳ ϳй нϭϭ Ϯй нϭϭ ϱй нϭϭ ϴй нϱ ϳй нϭϭ Ϯй нϭϭ Ϯй нϭϭ ϲй нϳ ϱй нϭϭ ϵй нϭϭ Ϯй ϭϲϯ ͲϮϬ Ϭй ϭϰϯ Ͳϯ ϱй ϭϯϯ Ͳϴ ϵй ϭϰϭ Ͳϭϯ ϯй ϭϯϱ ͲϮϰ ϳй ϭϭϵ Ͳϱ Ϭй ϭϭϳ Ͳϯ ϴй ϭϭϲ нϳ ϳй ϭϭϭ ϭϭϭ ͲϮ ϱй ϭϯϲ Ͳϭϱ ϯй ϭϯϯ нϯϭ ϱй ϭϱϳ ϮϬϳ Ͳϴ ϵй ϮϮϰ ͲϭϮ ϭй Ͳϵ ϱй W^ й ^hzwz/^ ϭϰϯ &h ^ ϭθϯ Π ϮϬϭϴ t/>>/ D KΖ /> н K / ϭϭϭ W ϯϲ ϮϬϭϴ Ɛƚ ϯϭ ϳ ϮϬϭϵ Ɛƚ Ϯϲ Ϭ ϱͳljƌ,ŝőś ϯϳ ϱͳljƌ >Žǁ ϭϯ Ϯϭϵ ǀƐ /ŶĚ ǀŐ ϭ ϰdž ƌğnjnjž /ŶĚƵƐƚƌŝĂ KŶ Z ZͿ tğğŭůlj ĂƐ ŽĨ DŽŶ :ĂŶƵĂƌLJ ϭϱ ϮϬϭϴ The group is launching rezzo ight, a new store format, in order to expand into smaller cities in Brazil (with 80K-250K inhabitants). This new format will operate with reduced selling space and instead offer an interactive screen through which customers can browse the Company s full catalog. With rezzo ight, the Company will have a leaner format that should reduce capex requirements per store and boost profitability. The nacapri brand focuses on flat and comfortable shoes offered at lower price points. The brand is experiencing rapid expansion (sales grew 24.2% y/y in Q3 2017), and management projects that the brand will see continued growth in sales and store count for at least the next three years. Schutz, the Company s upscale brand, plans to expand in the U.S by opening two new stores in 2018, in addition to its two existing flagship stores in the region. ooking Forward The Company aims to open new stores in 2018 (up from 50 new stores in 2017). The Company s sixth brand urora is projected to be launched in H The next catalyst is the Company s Q4 earnings announcement on March 7, ocal Code: BRRZZ3 Bloomberg Symbol: RZZ3:BZ ISI: BRRZZCOR3

74 rezzo Industria On RZZO IDUSTRI O BRZI (RZ.BR) BSP PPR-SHOS & R MFG 89.77M 43.99M SHRS RIGS BUSISS: MGMT owns SC RZZO IDUSTRI COMRCIO S IS BRZI-BSD COMPY FRCHISD STORS, MUTI-BRD STORS D -COMMRC PRIC = PRICIPY GGD I TH FOOTWR IDUSTRY. TH COMPY PTFORMS. TH COMPY IS PRST I BRZI D TH UITD 10 X PS SPCIIZS I TH DSIG, MUFCTUR, DVOPMT, MODIG STTS. TH COMPY OPRTS THROUGH UMBR OF D S OF WOM'S FOOTWR, BGS D CCSSORIS. TH SUBSIDIRIS, SUCH S ZZB COMRCIO D CCDOS TD, ZZSP COMPY'S BRD MS PORTFOIO ICUDS RZZO, SCHUTZ, IDUSTRI COMRCIO D CCDOS TD, RZZ ITRTIO XDR BIRM, CPRI D FIVR. IT DISTRIBUTS IC, RZZ C D SCHUTZ FOOTWR THROUGH VRIOUS CHS, SUCH S OW D U W K Y PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT 12/22/2017 CP BR 5.31BI. SS BR1.34 BI BRZI PS RTIG 75 BR59.13(OH -4%) Down 0.12% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(4 STBIITY) +9% %(4 STBIITY) +9% COMPOSIT RTIG IVT T/O 6.1x DBT % %: 6%: 4% %: 27%: 26% TX RT : : BCKOG X '16 BK.V R&D DIV 1.48(2.5%) DIV GR RT+23% (26) BT 1.02(24) PH 0.19(0.08) Global Focus M BR BRBOVS % B VOUM 2M SP Q -54% BOW ST. PS (BR) % CHG SS(BI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 12.7% +22.8% % % 8.2% +21.5% % % 12.5% +22.1% % % 11.3% +22.0% % % 10.4% +20.6% % % 7.7% +20.1% % % 11.2% +20.5% % % 11.5% +20.0% % % 11.8% +20.0% % % 5.7% +18.9% % % 10.2% +18.9% / / / / / / / / / / /20562 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: pparel-shoes & Rel Mfg % % 10.2% +18.1% /20319 SP % % 10.6% +18.0% % % 7.5% +18.6% % % 11.9% +20.2% / / / /28453 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 10.2% +21.0% 1M 700 K 500 K 300 K DC Q % '13-18 P..'S OW OW HI ST DC 17 12X 35X 36X MR 18 TM DTGRPHS 2/2/2018

75 BRZI >ŽĐĂůŝnjĂ ZĞŶƚ Ăƌ KŶ >K Z ZW^ ϭ ϵ dž ϯϭ ϱθ Ϯϲ ϯϯ Ϯϰ Ϯϭ ϮϮ ϭϭ ϮϬ ϬϬ ϭϳ ϴϵ ϭϱ ϳϵ Source: Corporate Website ϭϯ ϲθ ϭϯ ϲϯ ϭϭ ϱθ нϱϱ ϯϭ ϯϯϰϳ ϳϳϱϯ W^ ZĂŶŬ ϴϰ ^ K W h>k džđś ZZ d KZϰ ůžđăůŝnjă ĐŽŵ >ĞŝƐƵƌĞͲ^ĞƌǀŝĐĞƐ ^ŚĂƌĞƐ ϲϲϳd &ůžăƚ ϱϭϭd W^ ƵĞ Ϯ ϱ ϮϬϭϴĞ IURP 3YRW Q :HHV D'Dd ŽǁŶƐ K, ͲϮй ϱϭ ϰϲ ϰϯ ϯθ 6KDUHV DUH UHDQJ RXW RI D FXS ZWK KDQGOH DVH ϭϯ ϱϭ Ϯϭ Ϯϴ ϭϯ ϭϯ ϭϭ ϵ ϰϯ ϭϭ ϭϭ ϬϬ ϵ ϵϭ ϵ ϰϯ ϵ ϴϲ н ϴ ϯ ϲθ ϳ ϯ ϭϲ Company Overview It operates car and fleet rental units under the ocaliza Rent-Car brand and also has a franchising division. Q revenues by segment: car sales, 57%; car and fleet rentals and franchising, 43%. Z> нϭ ϳϲй ϭϱ ϭϭ ϳϳ ϱ Ϯϲ ocaliza is Brazil s largest car/fleet rental company. The Company is a leading player in a fragmented market and controls 34% of the car rental market. ϯϭ Ϯϲ Ϯϰ ϮϮ Ϯϭ ϲϲ ϭϯ ϵϰ ϭϯ ϬϮ ϵ ϭϲ ϯϰ ϭϳ ϭϭ ϲϲ ϰ ϳϰ WZ/ ϲϭ ϭϵ нϭ ϭϲϭ ϭϯ ϴϴ ϭϭ ϰϯ >K' &ŝdžğěͿ (DUQQJV JURZWK V H[SHFWHG WR H VWURQJ Q +JK (36 5DQ RI ϴ ϵϱ ϴ ϱϯ ϳ ϴϵ ϰ Ϯϭ DŬƚ ĂƉ Z>ϭϰ ϮϬ ^ĂůĞƐ Z>ϱ ϱϱ &ƵŶĐŝŽŶĂƌŝŽƐ Z /> /ŶĐ ϭϵϳϯ >K >/ Z d Z ^ >K >/ Ϳ /^ Z />Ͳ ^ KDW z WZ/D Z/>z /sk>s / d, Z &> d Z d > d, KDW z /s/ ^ /d^ h^/ ^^ /dk d,z ^ dkz^ Z Z d > /s/^/k t,/, /^ Z ^WK^/ > &KZ Z Z d > d,zkh', /d^ Kt ' / ^ &> d Z d > /s/^/k t,/, /^ ' ' / Z d > K& &> d s,/ > ^ dk KZWKZ d/k^ &KZ >K'Ͳd ZD W Z/K ^ &Z,/^/' /s/^/k t,/, /^ d/s / d, D//^dZ d/k 'Z d/' K& &Z,/^ Z/',d^ dk h^ d, KDW zζ^ Z / >h /' d, dz ^& Z K& <Kt> ' ^^ Zz &KZ d, KW Z d/k K& d, h^/ ^^ DKZ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϯϭ Ϭ ϭϳ Ϭ ϯϵ Ϭ ϰϱ Ϭ ϯϳ Ϭ ϲϭ Ϭ ϲϯ Ϭ ϲϭ Ϭ ϲϯ W^ Z> Ϭ ϵϱ ϮϬйŸ Ϭ ϳϵ Ϯϳйź ^, &>Kt ^,Z Z> ϭ ϴϲ ϭ ϳϳ Ϯ ϰϵ Ϯ ϲϰ Ϯ ϱϰ ϯ ϭϯ ϯ ϭϯ Ϯ ϵθ ϯ ϰϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϭϭй ϴй ϭϰй ϭϰй ϭϭй ϭϱй ϭϱй ϭϰй ϭϯй ϮϬϭϱͲϭϳ ϱй ϰ ^ƚăďŝůŝƚljͿ ϭϭй Z dhz K Yh/dz й Ϯϳй ϭθй ϯϯй Ϯϵй ϮϬй Ϯϳй ϮϮй ϮϬй ϮϬϭϯͲϭϳ ϭϭй ϭϯ ^ƚăďŝůŝƚljͿ ϭϭй ^ > ^ й, ' Ϯϭй Ϭй ϯϳй ϭϳй ϵй ϭϭй ϭϭй ϭй ϭϯй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ Z> ϭ ϴϮϰ ϭ ϴϮϭ Ϯ ϰϵϳ Ϯ ϵϭθ ϯ ϭϲϳ ϯ ϱϭϲ ϯ ϴϵϮ ϯ ϵϯθ ϰ ϰϯϵ /s d K t <>z KĐƚ Ϯϳ Žǀ Ϭϯ Žǀ ϭϭ Žǀ ϭϳ Žǀ Ϯϰ ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ϮϬ d й ϮϬϭϰͲϭϲ ϭϰϲй ϭϯϰй ϭϰϯй d 'Z W, Z d/' ϳϮ ϲθ ϳϮ ϳϭ ϱϳ ϳϬ ϳϬ ϳϯ ϲϵ d y Z d ϮϬϭϰͲϭϲ Ϯϵй Ϯϰй ϮϮй s' />z sk> ϬϬϬͿ ϰ ϱϭϱ ϰ ϱϭϭ ϰ ϳϲϴ ϰ ϵϱϭ ϰ ϴϴϵ ϰ ϲϭϵ ϰ ϯϲϭ ϰ ϬϬϮ ϯ ϳϮϳ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ Ϯ Ϭ ϵ Ϭ ϵ Ϭ ϴ Ϭ ϳ Ϭ ϳ Ϭ ϴ ϭ Ϭ Ϭ ϵ Z Θ < s > ϱ ϲϯdž Ζϭϲ hd /^d Z d/' Ͳϭ ͲϮ ϭϲ ϯ ϯ Ͳϴ Ͳϭ Ͳϱ ϭ /s Z> Ϭ Ϯϱ ϭ ϮйͿ /s 'Z Zdнϭϳй ϭϭͿ Z > d/s ^dz 'd, ϳϲ ϳϲ ϴϯ ϴϲ ϵϵ ϴϲ ϴϱ ϴϳ ϴϲ d Ϭ ϳϮ ϮϮ ϬϬͿ >W, Ϭ Ϯϭ Ϭ ϭϯͿ 'ZKhW Z < ϯϯ ϯϲ ϰϱ ϯϵ ϯϰ ϯϰ ϯϭ ϯϭ ϯϯ ϮϬϭϲ DW>Kz ^ ϲ ϯϯϰ ϮйͿ ϭϭ ϬϬ ϲ ϴϰ ϲ ϯϯ ϱ ϳϵ ocaliza Rent Car On ϲ ϱϳ ϲ ϲ ϯϰ +JK 56 5DWQJ RI Ϯ ϲϯ Ϯ ϰϯ ϱ ϰ ϲ Ϯ Ϯϭ ϰ Ϯ Ϯ ϬϬ ϯ ϴ ϭ ϳϵ ϯ ϰ ϭ ϱθ ϯ ϭ ϯϳ ϭ Ϯϲ ϭ ϭϲ Ϯ ϲ Ϯ ϰ 7KH QXPHU RI IXQGV KROGQJ Ϯ Ϯ /RFDO]D VKDUHV FRQWQXHV WR QFUHDVH >K' sk>hd ϮϬD ͲϮϳй ϭϭd ϳ ϲd ϳD :ƵŶ ϭϯ &/ / >^ Ϭ ϭϲ W^ Z>Ϳ ^ĞƉ ϭϯ Ϭ ϭϲ ĞĐ ϭϯ Ϭ ϭϰ DĂƌ ϭϰ Ϭ ϭϲ :ƵŶ ϭϰ Ϭ ϭϱ ^ĞƉ ϭϰ Ϭ ϭϲ ĞĐ ϭϰ Ϭ ϭϲ DĂƌ ϭϱ Ϭ ϭϱ :ƵŶ ϭϱ Ϭ ϭϰ ^ĞƉ ϭϱ Ϭ ϭϲ ĞĐ ϭϱ Ϭ ϭϲ DĂƌ ϭϲ Ϭ ϭϲ :ƵŶ ϭϲ Ϭ ϭϱ ^ĞƉ ϭϲ Ϭ ϭϲ ĞĐ ϭϲ Ϭ ϭϲ DĂƌ ϭϳ Ϭ ϭϵ :ƵŶ ϭϳ Ϭ ϮϬ ^ĞƉ ϭϳ Ϭ ϭϵ ĞĐ ϭϳ Ϭ ϮϯĞ DĂƌ ϭθ Ϭ ϮϰĞ :ƵŶ ϭθ Ϭ ϮϯĞ ^ĞƉ ϭθ Ϭ ϮϰĞ нϳϭϭй нϰϱй W^ й, ' ϴϭϯ ϭ ϵϯϱ ϵ ^ > ^ D/> Z>Ϳ нθй ϵϲϯ ϵ нϭϰй ϵϰϱ ϭ Ͳϲй ϵϭϰ ϲ Ϭй ϭ ϬϬϳ ϰ нϭϰй ϭ Ϭϯϱ Ϯ Ͳϲй ϭ ϬϬϳ Ϭ Ͳϳй ϵϰϵ ϰ Ϭй ϵϳθ ϭ Ϭй ϵϵϯ ϲ нϳй ϭ Ϭϰϳ Ϭ нϳй ϵϲϯ ϭ Ϭй ϭ ϭϯϯ Ϯ Ϭй ϭ ϯϭϲ Ϭ нϭϵй ϭ ϯϯϵ ϲ нϯϯй ϭ ϯϰϱ ϴ нϭϵй ϭ ϱϲϯ ϰ нϰϰйğ ϭ ϱϲϰ ϳĞ нϯϲйğ ϭ ϱϳϵ ϮĞ нϭϱйğ ϭ ϲϯϵ ϮĞ нϯϲйğ ϭ ϵθϲ ϳĞ нϯй нϭϲй ^ > ^ й, ' нϭϯ ϳй нϭϭ ϵй D Z'/ &d Z d y нϯϭй нϭϵй нϭϭй нθй нϳй нϳй нϱй Ͳϯй Ͳϰй нϰй нϭй нϭϱй нϯϭй нϯθй нϰϭй нϯϵй нϯϭйğ нϭθйğ нϯϯйğ нϯϳйğ нϵ ϯй нϭϭ Ϯй нϭϭ ϭй нϭϭ ϭй нϵ ϵй нϭϭ Ϭй нϵ ϴй нϭϭ ϱй нϭϭ ϳй нϵ ϴй нϭϭ Ϯй нϵ ϯй нθ Ϭй нϵ Ϭй нϵ ϲй нϳ ϵй ϱͳljƌ >Žǁ ϭϭ нϯϰ ϲй нϲ ϱй W^ й ^hzwz/^ ϰϰϭ &h ^ ϰϳϳ ͲϮ ϴй ϱϭϯ нϭϭ Ϯй ϰθϳ нϭϭ ϵй ϱϭϭ ϱϯθ нϭ ϰй ϱϳϱ нϰ ϰй ϱϯϯ нϱϭ ϲй ϱϰϯ нϭϯ ϵй ϰθϯ нϭϲ ϯй ϰϲϯ нϵ ϲй ϰθϭ нϲ Ϭй ϱϭϭ нϵ ϳй ϱϯθ нϭϵ ϱй ϲϭϭ нϭϱ ϴй ϲϰϭ Ͳϱ ϲй ϲϱϱ ǀƐ /ŶĚ ǀŐ ϭ Ϯdž W Ϯϳ ϮϬϭϴ Ɛƚ ϮϮ ϰ ϮϬϭϵ Ɛƚ ϮϬ Ϯ O eil Methodology ocaliza has a strong PS Rank of 85. Over the past five years, its earnings have advanced an average of 10%. This growth has also been relatively consistent, as reflected by its Stability Factor of 13 (out of 99, lower is better) during the same period. Its earnings growth is expected to pick up next year. Per consensus expectations, PS is expected to increase 20% y/y in Institutional holdings increased from 511 funds as of September 2016 to 655 funds as of September In Q3 2017, the Company s revenues increased 39% y/y to BR 1.563B on account of robust growth in all three divisions. The Company s BIT improved 41% y/y to BR 263.9M. et income rose 34% y/y to BR 139.5M, a record for the company. In recent years, ocaliza s growth has been driven mainly by volume. In the car rental business, the number of daily rentals had a CGR of 10% from 2014 to 2016, while revenues had a CGR of 5.4% over the same period. BITD margins for the RC business declined from 38.7% to 32.3% from 2014 to In December 2016, ocaliza agreed to acquire Hertz s operations in Brazil and, as part of the alliance, ocaliza and Hertz will have a branding agreement. fter the integration, ocaliza added a fleet of about 3,300 cars to the car rental division, while 1,317 cars were decommissioned for sale. The absorption of this fleet represented 3.2% of the average ocaliza fleet in September. The deal is expected increase the visibility of the ocaliza brand in a highly fragmented market. Growth Drivers In order to continue generating top-line growth in its car rental business in an adverse economic environment, ocaliza has focused on maximizing the revenue yield from its rental fleet through aggressive pricing strategies. ooking Forward Interest rates in Brazil are expected to decline further, which will aid in reducing the Company s cost of debt and increase the spread between ROIC and cost of debt. ast week, the Central Bank lowered the benchmark interest rate to an all-time low of 7.00%. The next catalyst is the full year 2017 earnings announcement on February 5, Π ϮϬϭϳ t/>>/ D KΖ /> н K / -72- ϱϯϯ ϱͳljƌ,ŝőś ϯϭ >ŽĐĂůŝnjĂ ZĞŶƚ Ăƌ KŶ >K ZͿ tğğŭůlj ĂƐ ŽĨ tğě ĞĐĞŵďĞƌ ϮϬ ϮϬϭϳ ocal Code: BRRT3 Bloomberg Symbol: RT3:BZ ISI: BRRTCOR4

76 ocaliza Rent Car On OCIZ RT CR O BRZI (OC.BR) BSP ISUR-SRVICS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC OCIZ RT CR S (OCIZ) IS BRZI-BSD COMPY CSSRY FOR TH OPRTIO OF TH BUSISS. THROUGH ITS PRIC = PRIMRIY IVOVD I TH CR D FT RT. TH COMPY SUBSIDIRY PRIM PRSTDOR D SRVICOS S, TH COMPY IS 10 X PS DIVIDS ITS BUSISS ITO THR SCTORS: CR RT SO IVOVD I TH ITRMDITIO I TH S OF CRS DIVISIO, WHICH IS RSPOSIB FOR CR RT THROUGH ITS PRVIOUSY USD I ITS RT OPRTIOS. S OF DCMBR 31, OW GCIS; FT RT DIVISIO, WHICH IS GGD I 2011, TH COMPY'S TWORK, ICUDIG DOMSTIC D FORIG RT OF FT VHICS TO CORPORTIOS FOR OG-TRM FRCHISS, COMPRISD 449 BRCHS I 314 CITIS I BRZI 7.00 PRIODS, D FRCHISIG DIVISIO, WHICH IS CTIV I TH D 47 BRCHS I 27 CITIS I SV OTHR COUTRIS OF DMIISTRTIO D GRTIG OF FRCHIS RIGHTS TO US TH SOUTH MRIC. COMPY'S BRD, ICUDIG TH TRSFR OF KOWDG U W K Y PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT 12/15/2017 CP BR 16.99BI. SS BR5.55 BI BRZI PS RTIG IC BR25.47(OH -2%) PRIC SC 80 Up 17.92% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (4 STBIITY) +11% %(13 STBIITY) +10% COMPOSIT RTIG IVT T/O DBT % %: 134%: 143% %: 24%: 22% TX RT : : BCKOG X '16 BK.V R&D DIV 0.25(1.0%) DIV GR RT+17% (11) BT 0.78(26) PH 0.22(0.12) BRBOVS Global Focus M BR B / /1 3.2 VOUM 20 M SP Q -84% BOW ST. PS (BR) % CHG SS(BI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 9.3% +28.8% /274M DC % % 11.2% +28.1% /261M MR % % 11.1% +26.6% /269M JU % % 10.1% +25.1% /263M SP % % 9.9% +27.4% /243M DC % % 10.0% +25.5% % % 9.8% +23.8% /232M MR /227M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: eisure-services % % 10.5% +22.9% /219M SP % % 10.7% +22.3% /243M DC % % 9.8% +21.6% /229M MR % % 10.2% +21.0% /223M JU % % 9.3% +20.4% /231M SP % % 8.0% +19.7% /223M DC % % 9.0% +19.7% /248M MR % % 9.6% +20.4% 637/254M JU 17 FOR IFORMTIO, C OR VISIT % % 7.9% +20.4% 6M DC Q % '13-18 P..'S OW OW HI ST 662/252M SP 17 9M DC 17 10X 27X 29X MR 18 TM DTGRPHS 2/2/2018

77 BRZI ǀĐ ƌă KƉĚ ĐĚǀ KŶ s Z W^ ϭϰ dž ϲ ϰϯ ϱ ϳϭ ϱ ϬϬ ϰ Ϯϵ ϯ ϱϳ ϯ Ϯϵ ϯ ϬϬ Ϯ ϳϭ Ϯ ϰϯ Cvc Bra.Opd. cdv. On ^ K W h>k džđś Z s KZϭ нϱϱ ϭϭ Ϯϭϵϭ ϭϭϳϵ W^ ZĂŶŬ ϴϵ ĐǀĐ ĐŽŵ ďƌ DŬƚ ĂƉ Z>ϯ ϯϯ ^ĂůĞƐ Z>ϵϵϴ ϰϯd ^ŚĂƌĞƐ ϭϯϰd &ůžăƚ ϭϭϯd W^ ƵĞ ϭϭ ϵ ϮϬϭϲĞ K, Ͳϲй D'Dd ŽǁŶƐ s Z ^/> KW Z KZ ' / s/ ' ^ ^ /^ Z />Ͳ ^ KDW z ' ' / d, dkhz/^d ^ dkz d, KDW z K&& Z^ KD ^d/ /d Z d/k > dkhz/^d W < ' ^ Zh/^ ^,Kd > Z ^KZd ^d z^ /Z>/ d/ < d^ dkhz^ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ Ϭ ϲϯ Ϭ ϴϱ Ϭ ϭϲ Ϭ ϴϲ ϭ ϭϭ ϭ Ϯϵ ϭ ϯϳ ϲйź W^ Z> ϭ ϲϵ ϮϯйŸ ^, &>Kt ^,Z Z> Ϭ ϴϬ ϭ ϭϭ ϭ Ϯϳ ϭ ϲϭ ϭ ϵϯ Ϯ Ϯϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й Ϯϯй Ϯϵй ϳй Ϯϳй ϯϯй ϯϭй ϮϬϭϰͲϭϲ ϭϯϳй ϵϵ ^ƚăďŝůŝƚljͿ ϭϲй Z dhz K Yh/dz й ϵϱй ϭϭй ϰϯй ϯθй ϯϯй ϮϬϭϮͲϭϲ Ϯϲй ϵϵ ^ƚăďŝůŝƚljͿ ϭϭй ^ > ^ й, ' ϮϮй ϱй ϯй ϭϭй Ϯϯй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ Z> ϰθϵ ϱϵϲ ϲϯϯ ϲϰϭ ϳϭϱ ϴϴϮ /s d K Ϯ ϭdž ϭϲ t <>z ƵŐ ϭϯ ƵŐ ϭϵ ƵŐ Ϯϲ ^ĞƉ ϬϮ ^ĞƉ Ϭϵ ^ĞƉ ϭϲ ^ĞƉ Ϯϯ ^ĞƉ ϯϭ KĐƚ Ϭϰ d й ϮϬϭϯͲϭϱ Ϭй Ϭй Ϯϰй d 'Z W, Z d/' ϳϬ ϲϳ ϲϰ ϲϲ ϳϬ ϳϯ ϳϱ ϳϰ ϳϰ d y Z d ϮϬϭϯͲϭϱ ϯϲй ϯϱй ϯϱй s' />z sk> ϬϬϬͿ ϲϯϯ ϳϭϵ ϳϲϰ ϴϯϳ ϴϳϲ ϴϳϲ ϴϵϳ ϵϭϱ ϵϯϭ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd ϭ ϵ ϭ ϰ ϭ ϰ ϭ ϯ ϭ ϰ ϭ ϰ ϭ ϯ ϭ ϰ ϭ ϰ Z Θ < s > ϱ ϴϱdž Ζϭϱ hd /^d Z d/' Ϯϵ ϭ ϱ ϭϰ Ϯϱ Ϯϱ Ϯϵ ϯϭ ϯϳ /s Z> Ϭ ϴϲ ϯ ϰйͿ /s 'Z Zd Z > d/s ^dz 'd, ϳϲ ϳϰ ϲϯ ϲϵ ϳϯ ϳϰ ϴϯ ϳϵ ϴϮ d Ϭ ϲϲ ϲϰ ϬϬͿ >W, Ϭ Ϭϲ ͲϬ ϬϲͿ 'ZKhW Z < ϭϯ ϮϬ ϮϬ Ϯϭ Ϯϭ Ϯϵ ϭθ Ϯϭ Ϯϲ ϮϬϭϱ DW>Kz ^ ϭ ϭϭϯ ϯйͿ Ϯ ϭϰ Source: Corporate Website >ĞŝƐƵƌĞͲdƌĂǀĞů ŽŽŬŝŶŐ ^ĂŶƚŽ ŶĚƌĞ Z /> Strong 2017 estimate ϴϬ ϳϬ ϲϭ ϱϭ ϰϲ ϰϯ ϯθ ϯϰ ϯϭ High U/D volume ϭ ϴϲ ϭ ϳϭ ϭ ϱϳ Ϯϲ Great growth rates Ϯϰ ϲθ Ϯϰ Z> ϮϮ нϭ ϲϯϭ нϯ ϲϯй ϭϵ ϭϳ ϭϱ ϭ Ϭϳ Ϭ ϵϯ Ϭ ϴϲ Ϭ ϳϵ ϭϯ ϭϯ ϭϭ ϴϮ Ͳ Ϭ ϳϭ ϭϭ Ϭ ϲϰ ϵ ϴ Ϭ ϱϳ Ϭ ϱϭ Rising R/S line with good /D rating Ϭ ϰϯ ϳ ϲ ϰ ϴ ϰ ϰ Ϭ ϯϰ Ϭ ϯϭ Company Overview CVC provides a diverse portfolio of services for Brazilian families of all income levels and offers a broad range of more than 1,000 domestic and international destinations. The Company s travel products combine airfare, ground transportation, accommodations, and other complementary services. WZ/ ϵϭ ϭ ϯϲ ϭ ϯϱ ϭ Ϯϭ CVC Brasil Operadora e gencia de Viagens (CVC. BR) is the largest travel agency in Brazil based on the number of confirmed bookings. The Company grows through new store openings. >K' &ŝdžğěͿ ϰ Ϭ Ϯϵ Ϭ Ϯϲ Ϭ Ϯϯ ϯ ϲ Solid PS and revenue growth Increasing sponsorship ϯ Ϯ >K' sk>hd ϮD ϭ ϰd ϵϭϭ< ͲϮϭй ϰϭϭ< ^ĞƉ ϭϭ &/ / >^ W^ Z>Ϳ ĞĐ ϭϭ Ϭ ϴϱ DĂƌ ϭϯ Ϭ ϯϱ :ƵŶ ϭϯ Ϭ ϬϮ ^ĞƉ ϭϯ Ϭ Ϯϯ ĞĐ ϭϯ ͲϬ ϰϱ DĂƌ ϭϯ Ϭ Ϯϴ :ƵŶ ϭϯ ͲϬ Ϭϭ ^ĞƉ ϭϯ Ϭ Ϯϵ ĞĐ ϭϯ Ϭ ϯϭ DĂƌ ϭϰ Ϭ ϯϭ :ƵŶ ϭϰ Ϭ Ϭϲ ^ĞƉ ϭϰ Ϭ ϯϭ ĞĐ ϭϰ Ϭ ϰϱ DĂƌ ϭϱ Ϭ ϰϭ :ƵŶ ϭϱ Ϭ Ϭϴ ^ĞƉ ϭϱ Ϭ ϯϯ ĞĐ ϭϱ Ϭ ϰθ DĂƌ ϭϲ Ϭ ϰϰ :ƵŶ ϭϲ Ϭ Ϭϵ ^ĞƉ ϭϲ Ϭ ϯϰğ ĞĐ ϭϲ Ϭ ϰθğ ͲϮϬй ͲϭϱϬй нϯϲй нϭϲϵй нϳй нϳϭϭй нϯй нϰϱй нϯϯй нϯϯй нϭϭй нϳй нϭϭй нϭϯй нϯйğ ϬйĞ ϭϲϯ ϵ ϭϯϰ Ϭ нϱй ϭθθ ϱ нϭθй ϭθϯ ϲ нϭϱй ϭθϱ ϳ нϭϯй ϭϯϵ ϳ нϭϯй Ϯϯϰ ϲ нϯϲй ϭϱθ ϵ нϭϰй Ϯϰϰ ϳ нϯϭй Ϯϰϯ ϳ нϯϵй ϮϴϬ ϰ нϯϭй ϮϮϵ ϳ нϰϱй W ϭθ ϮϬϭϲ Ɛƚ ϭθ O eil Methodology CVC has a history of strong earnings growth, as reflected by its PS Rank of 87. Over the past three years, PS has grown an average of 11% y/y. Growth has been consistent, as reflected by a stability factor of 5 out of 99 (lower is better). In Q3 2017, the Company recorded revenues of BR 314M, an increase of 10% y/y and above consensus expectations of BR 309M. Growth was driven by 10.5% y/y growth in SSS. Growth was observed in CVC s own stores (+14% y/y) and in independent agents (+11% y/y). Consolidated bookings grew 15.7% y/y in Q3 2017, accelerating from 13.8% y/y bookings growth in Q Its exclusive stores had 13.8% y/y bookings growth, Including xperimentobranded stores, booking growth was 12.3% y/y. Over the years, CVC has grown through acquisitions and by improving its performance. In late 2014, it acquired a major stake in Grupo Duotur (which operates Rextur, a business-to-business travel agency), and in 2015, it acquired online booking platform Sumbarino Viagens. Bookings growth (y/y) for Rextur dvance and Submarino Viagens turned positive in Q and has improved further from +5% y/y in Q to +21.6% y/y in Q The Company acquired Visual Turismo in Q3 2017, the third-largest operator in the leisure segment, with bookings of BR 400M in 2016 (CVC s bookings for 9M 2017 were BR 7.479B). In May, the Company acquired Grupo Trend, one of the largest tour operators in Brazil. Growth Drivers The Company is on track with its expansion plan, opening 20 CVC-branded stores during the quarter, bringing the total CVC store count to 1,156. dditionally, the Company added three xperimento-branded stores, bringing the number of xperimento stores to 46. ooking Forward CVC continues to explore possible merger opportunities in multiple travel segments, including the student travel segment. Further, it is planning to acquire tourism operators and travel consolidators. The Company is positioned to directly benefit from economic reform through higher bookings, the sale of more value-added services such as travel insurance, and a recovery in the corporate travel segment. ext Catalyst: The Company s Q results to be reported on February 13, W^ й, ' нϯϳй ^ > ^ D/> Z>Ϳ ϱϵϲ ϭ ^ > ^ й, ' нϯϯй ϭϭϳ ϲ ϭϲϭ Ϯ ϭϱϵ ϴ нϭϭ ϵй W^ й ^hzwz/^ ϰϯ ϭϭd &h ^ ^, Z ^, > z &h ^ Π ϮϬϭϲ t/>>/ D KΖ /> н K / -74- ϵϳ ϭϳd ϭϭϭ ϭϲd ϭθθ ϳ Ϭй ϭθθ ϳ нϯй нϯϭ ϴй нϲϭ ϴй ϭϭϰ ϭϱd ϭϭθ ϭθd нϭϭ ϰй ϭϭϱ ϭϲd ϭϯϰ ϭθd ϱͳljƌ,ŝőś ϭθ ϱͳljƌ >Žǁ ϴ ǀƐ /ŶĚ ǀŐ Ϭ ϲdž ϭϯϱ ϭϵd ϭϯϯ ϭϱd ϭϯϰ ϭϲd ϭϯϰ ϭϳd ǀĐ ƌă KƉĚ ĐĚǀ KŶ s ZͿ tğğŭůlj ĂƐ ŽĨ dƶğ KĐƚŽďĞƌ Ϭϰ ϮϬϭϲ Ĩ dƶğ KĐƚŽďĞƌ Ϭϰ ϮϬϭϲ ocal Code: BRCVCB3 Bloomberg Symbol: CVCB3:BZ ISI: BRCVCBCOR1

78 Cvc Bra.Opd. cdv. On CVC BR.OPD. CDV. O BRZI (CVC.BR) BSP ISUR-TRV BOOKIG M M SHRS RIGS BUSISS: MGMT owns X-DIV SC CVC BRSI OPRDOR GCI D VIGS S IS TGRS. TH COMPY SS PRODUCTS D SRVICS THROUGH PRIC = BRZI-BSD COMPY GGD I TH TOURISM SCTOR. TH OW STORS, OI DISTRIBUTIO PTFORM D UTHORIZD 10 X PS COMPY OFFRS DOMSTIC D ITRTIO TOURISM PCKGS, IDPDT GTS I UMBR OF TI MRIC COUTRIS, CRUISS, HOT D RSORT STYS, IRI TICKTS D TOURS. SUCH S BRZI, RGTI D COOMBI. ITS DSTITIOS ITS TRV PCKGS COMBI IRFR, GROUD TRSPORTTIO, RG MIY ICUDS UROP D TH MRICS. TH COMPY CCOMMODTIOS, TRV ISURC, TOURIST GUIDS D OTHR OPRTS THROUGH CVC SRVICOS GCI D VIGS TD, MOG COMPMTRY TRV SRVICS. I DDITIO, IT ORGIZS OTHRS ITRTIO XCHGS, GUG CMPS D TRIPS FOR STIMT 2018 STIMT U W K Y PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP BR 8.00BI. SS BR1.10 BI BRZI PS RTIG 86 BR56.43(OH 0%) 170 Up % Since ddition % % RIGS GROWTH RT SS GR RT % (5 STBIITY) +18% %(99 STBIITY) +14% COMPOSIT RTIG IVT T/O PRIC SC x 15 DBT % %: 24%: 12% 35%: 35%: 33% TX RT : : BCKOG X '16 BK.V R&D DIV 0.46(0.8%) DIV GR RT+42% (84) BT 0.83(30) PH 0.22(0.12) BRBOVS % Global Focus M BR /100 VOUM 7M 3M SP Q -43% BOW ST. PS (BR) % CHG SS(BI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) 0.31 #+169% % 21.7% +42.3% /10451 DC % % 21.2% /15767 MR #+700% % 5.9% +39.6% % % 20.5% +35.0% % % 31.6% +37.6% % % 22.3% +36.2% % % 6.5% +37.3% % % 17.9% +33.8% % % 26.6% +33.3% % % 20.9% +31.3% % % 5.3% +34.9% / / / / / / / / /20911 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Cyclical: eisure-travel Booking % % 18.4% +32.2% /38723 SP % % 23.8% +29.7% % % 20.5% +27.4% % % 5.4% +33.3% % % 22.4% +32.5% 272/ / / /71332 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT M '13-18 P..'S OW OW HI ST DC 17 8X 33X 25X MR 18 TM DTGRPHS 2/2/2018

79 TIW dăŝǁăŷ ^ĞŵŝĐŽŶ DŶĨŐ d^d dt W^ ϭϱ dž ϰϭ ϬϬ ϯϯ ϯϯ ϯϭ ϲϳ Ϯϴ ϬϬ Ϯϱ ϯϯ ϮϮ ϲϳ ϮϬ ϬϬ ϭϳ ϯϯ ϭϲ ϬϬ ϭϰ ϲϳ Taiwan Semicon.Mnfg. d /t džđś dtϭϭϭϯϯϯϭϭϭθ нθθϲ ϯ ϱϲϯ ϲϲθθ W^ ZĂŶŬ ϵϰ ƚɛŵđ ĐŽŵ ůğđͳ^ğŵŝđžŷěƶđƚžƌ DĨŐ DŬƚ ĂƉ dt ϱ Ϭϰd ^ĂůĞƐ dt ϵϰϳ ϵϰ,ɛŝŷͳ ŚƵ d /t ^ŚĂƌĞƐ Ϯϱ ϵϯϭ &ůžăƚ ϭθ ϵϯϵ W^ ƵĞ ŝŷ ϭϲ ĂLJƐ ĞͿ K, Ϭй D'Dd ŽǁŶƐ d /t ^ D/ K h dkz D h& dhz/' KDW z >/D/d d^d Ϳ /^ ^ D/ K h dkz &Kh Zz d, KDW z /^ ' ' / d, D h& dhz/' ^ >>/' W < '/' d ^d/' KDWhd ZͲ / ^/' K& /d 'Z d /Z h/d^ Kd, Z ^ D/ K h dkz s/ ^ d, D h& dhz/' K& D ^<^ DKZ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϯ ϴϰ ϯ ϰϱ ϲ Ϯϰ ϱ ϭθ ϲ ϰϯ ϳ Ϯϲ ϭϭ ϭθ ϭϭ ϴϮ ϭϯ ϴϵ W^ dt ϭϯ ϵϱ ϴйź ϭϱ ϭϳ ϵйź ^, &>Kt ^,Z dt ϳ ϭϱ ϲ ϲϭ ϵ ϰϭ ϵ ϯϱ ϭϭ ϲϵ ϭϯ ϳϰ ϭθ ϯϭ ϭϵ ϳϭ Ϯϭ ϳϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϯϰй ϯϯй ϰϭй ϯϰй ϯϲй ϯϲй ϰϭй ϰϯй ϰϭй ϮϬϭϰͲϭϲ ϮϬй ϭϭ ^ƚăďŝůŝƚljͿ ϭϱй Z dhz K Yh/dz й Ϯϭй ϭθй ϯϭй ϮϮй Ϯϱй Ϯϰй Ϯϴй Ϯϳй Ϯϲй ϮϬϭϮͲϭϲ ϮϮй ϴ ^ƚăďŝůŝƚljͿ ϭθй ^ > ^ й, ' ϯй Ͳϭϭй ϰϯй Ϯй ϭϵй ϭθй Ϯϴй ϭϭй ϭϯй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ dt ϯϯϯ< Ϯϵϲ< ϰϯϭ< ϰϯϳ< ϱϭϳ< ϱϵϳ< ϳϲϯ< ϴϰϯ< ϵϰθ< /s d K ϰ ϯdž ϰϱ t <>z &Ğď Ϭϯ &Ğď ϭϭ &Ğď ϭϳ &Ğď Ϯϰ DĂƌ Ϭϯ DĂƌ ϭϭ DĂƌ ϭϳ DĂƌ Ϯϰ DĂƌ Ϯϴ d й ϮϬϭϰͲϭϲ Ϯϭй ϭϲй ϭϭй d 'Z W, Z d/' ϲϭ ϲϭ ϲϯ ϲϱ ϲϭ ϲϭ ϲϱ ϲϭ ϲϭ d y Z d ϮϬϭϰͲϭϲ ϭϯй ϭϯй ϭϯй s' />z sk> ϬϬϬͿ Ϯϲ ϳϮϳ Ϯϲ ϴϰϴ Ϯϳ ϴϱϲ Ϯϳ ϯϵϰ Ϯϴ ϯϯϲ Ϯϴ ϭϲϵ Ϯϴ ϱϱϱ Ϯϴ Ϭϵϰ Ϯϴ ϱϳϲ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϯ ϭ ϰ ϭ ϲ ϭ ϴ ϭ ϲ ϭ ϳ Ϯ Ϭ ϭ ϵ ϭ ϵ Z Θ ϳ ϱϭй < s > ϯ ϲϭdž Ζϭϲ hd /^d Z d/' Ͳϭϱ Ͳϳ Ͳϱ Ͳϴ ͲϮϯ ͲϮϰ Ͳϰ ϭ ϭϭ /s dt ϳ ϬϬ ϯ ϲйͿ /s 'Z ZdнϮϬй ϭϱͿ Z > d/s ^dz 'd, ϲϱ ϲϯ ϲϲ ϲϯ ϲϭ ϱϰ ϲϭ ϲϯ ϲθ d ϭ ϰϯ ϳϯ ϬϬͿ >W, Ϭ Ϭϭ Ϭ ϬϭͿ 'ZKhW Z < ϰϰ ϯϵ ϯϱ ϯϭ ϰϯ ϰϵ ϯϲ ϱϭ ϵϱ ϮϬϭϲ DW>Kz ^ ϰϯ ϱϵϭ ϴйͿ Strong PS rank ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ ϯθϭ ϯϰϭ ϯϭϭ Trading at new highs ϮϲϬ ϮϰϬ ϮϮϬ Improving /D and R/S ratings ϭϭ ϬϬ Source: Corporate Website O eil Methodology The stock broke out of its most recent 10-week flat base and is actionable. The stock has Up/Down volume ratio of 1.1, an RS Rating of 78, and an /D Rating of B. The stock has an PS Rank of 66. Per consensus estimates, earnings are expected to increase 12% in The Company reported Q results with revenue of TWD 277.6B (+5.9% y/y, +10.1% q/q), matching consensus estimates as well as guidance of TWD 277.5B at the midpoint. Revenues increased 10.1% q/q, primarily due to to major mobile product launches and continuing demand for cryptocurrency mining. Gross margin was 50.0% in Q4 2017, 0.1% greater than in Q3 2017, due to a higher level of capacity utilization. The Company reported PS of TWD 3.83 (-0.9% y/y, +10.4% q/q), beating consensus of TWD dt нϯ ϬϬ ϭϳϭ нϭ Ϭϰй ϭϯϭ ϭϯϭ ϭϭϭ ϲθ Ͳ 40-Week M ϲ ϬϬ Company Overview The Company is engaged in the manufacturing, packaging, testing, and computer-aided design of integrated circuits (IC) and other semiconductor devices. Q revenue by technology: 10nm, 25%; 16/20nm, 20%; 28nm, 18%; 40/45nm, 10%; 65nm, 9%; other, 18%. Q revenue breakdown by application: communication 62%, industrial/standard 22%, computer 11%, and consumer 5%. ϭϵϰ ϱϭ ϭϵϭ ϭϱϭ ϴ ϲϳ ϴ ϬϬ ϳ ϯϯ ϲ ϲϳ Taiwan Semiconductor Manufacturing (TSM.TW) is the world s largest dedicated semiconductor foundry. The Company continues to experience strong growth by building solid partnerships with its customers. WZ/ o overhead supply ϭϯ ϴϵ ϭϯ ϲϳ ϭϭ ϯϯ >K' &ŝdžğěͿ ϭϭϭ ϵϭ 10-Week M ϱ ϯϯ ϴϬ ϰ ϲϳ ϳϬ ϰ ϬϬ ϲϭ ϯ ϯϯ ϯ Ϭϳ ϱϭ ϰϲ Ϯ ϴϬ ϰϯ Ϯ ϱϯ ϯθ Ϯ Ϯϳ ϯϰ Ϯ ϬϬ ϯϭ ϭ ϳϯ ϭ ϲϭ ϭ ϰϳ Ϯϲ Ϯϰ ϮϮ >/ sk>hd ϯϲϭd ϮϴϬD ϮϬϬD нϰϭй ϭϯϭd ϲϳ ϲd ^ĞƉ ϭϯ &/ / >^ ϭ ϵϭ W^ dt Ϳ ĞĐ ϭϯ ϭ ϲϭ :ƵŶ ϭϲ Ϯ ϴϬ ^ĞƉ ϭϲ ϯ ϳϯ ĞĐ ϭϲ ϯ ϴϲ DĂƌ ϭϳ ϯ ϰϯğ :ƵŶ ϭϳ Ϯ ϵϱğ ^ĞƉ ϭϳ ϯ ϳϰĞ ĞĐ ϭϳ ϯ ϳϵĞ нϲϯй нϯϭй нϭϳй нϯϰй нϱй нθй нϯϯй нϭϱй нϰϳй нϳθй нϲϱй нϯϯй Ͳϭй Ͳϵй Ͳϭϴй Ͳϴй W^ й, ' ϭϰϭ ϰϵϵ ϯ ϭϯϭ ϰϰϰ ϴ ϭϯϯ ϳϱϱ Ϭ ϭϱϱ ϴϴϲ ϯ ϭϲϯ ϱϳϳ Ϭ ϭϰϱ ϴϬϱ ϴ ϭϰθ Ϯϭϱ Ϯ ϭθϯ ϬϮϬ ϱ ϮϬϵ Ϭϰϵ ϳ ϮϮϮ ϱϯϭ ϭ ϮϮϮ Ϭϯϰ ϭ ϮϬϱ ϰϯϵ ϴ ϮϭϮ ϱϭϰ ϵ ϮϬϯ ϱϭθ ϲ ϮϬϯ ϰϵϱ ϰ ϮϮϭ ϴϬϵ ϴ ^ > ^ D/> dt Ϳ нϯϯй нϯϲй нϯϲй нϯϯй нϭϱй нϭϭй нϭϯй нϭϳй нϯϵй нϱϯй нϱϭй нϭϯй нϯй Ͳϵй Ͳϴй нθй ^ > ^ й, ' нϯθй нϯϳй нϯϳйğ нϱйğ ϬйĞ ͲϮйĞ ϮϲϬ ϰϭϱ ϵ ϮϲϮ ϮϮϳ ϯ нϯϯй нϯϵй Ϯϯϴ ϭ<ğ нϭϳйğ Ϯϯϱ Ϯ<Ğ нϲйğ ϮϳϮ ϯ<ğ нϱйğ Ϯϳϲ ϴ<Ğ нϲйğ нϭϭ Ϭй Ͳϴϴ ϴй W^ й ^hzwz/^ ϭ Ϯϳϭ &h ^ϭ ϭϵϱ ϴ ϰθϭ Ϯϳϲ ϵϭϭ ^, Z ^, > z &h ^ DĂƌ ϭϯ ϭ ϱϯ ϭ ϯϭϱ ϴ :ƵŶ ϭϯ Ϯ ϬϬ ^ĞƉ ϭϯ Ϯ ϬϬ ϭ ϯϯϭ ϴ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭ ϯθϭ ϴ ĞĐ ϭϯ ϭ ϳϯ ϭ ϰϭϰ ϴ DĂƌ ϭϰ ϭ ϴϱ :ƵŶ ϭϰ Ϯ ϯϭ ^ĞƉ ϭϰ Ϯ ϵϰ ĞĐ ϭϰ ϯ Ϭϴ DĂƌ ϭϱ ϯ Ϭϱ :ƵŶ ϭϱ ϯ Ϭϲ ^ĞƉ ϭϱ Ϯ ϵϭ нϵ ϯй нϱ ϵй нϰ ϰй нϱ Ϭй нϭ ϱй нϭϭ Ϯй нϯ Ϭй ϭ ϰϯϭ ϴ ϭ ϱϭϱ ϴ ϭ ϱϱϯ ϴ ϭ ϲϲϳ ϴ ϭ ϳϭϯ ϴ ϭ ϳϰϲ ϴ ϭ ϴϬϭ ϴ ĞĐ ϭϱ Ϯ ϴϭ DĂƌ ϭϲ Ϯ ϱϭ нϱ ϳй ϭ ϴϰϰ ϴ ϭ ϵϭθ ϴ ϭ ϵϵϭ ϴ W ϭϱ ϮϬϭϳ Ɛƚ ϭϰ Ϭ ϱͳljƌ,ŝőś ϭϳ Ϭ ϱͳljƌ >Žǁ ϵ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϴdž Ϯ Ϭϲϭ ϴ Ϯ Ϭϴϱ ϴ dăŝǁăŷ ^ĞŵŝĐŽŶ DŶĨŐ d^d dtͿ tğğŭůlj ĂƐ ŽĨ dƶğ DĂƌĐŚ Ϯϴ ϮϬϭϳ Growth Drivers The Company announced plans to build a 3nm fab in the Tainan Science Park. The Company is likely to retain orders from pple for manufacturing iphones in 2018, as it is the front runner in migrating to 7nm fab technology. Samsung is also investing in 7nm, but commercial production will not start in 2018, which means TSM should maintain 100% of its business from pple through the first half of Strong demand for IoT technology, IDMs increasing outsourcing for automotive chips, and growing dollar content for semiconductors in automotive chips should benefit the Company in The Company plans to increase capital spending 5-10% every year for the next five years in developing the lower 10nm fab technology. ooking Forward TSM guided for Q revenue of TWD 248.6B-251.6B, below consensus estimates of TWD 254.5B, and operating margin of 38-40%. ext Catalyst: The Company s Q earnings release on pril ocal Code: T2330 Bloomberg Symbol: 2330:TT ISI: TW

80 Taiwan Semicon.Mnfg. TIW SMICO.MFG. TIW (TSM.TW) TI C-SMICODUCTOR MFG 25.93B 24.37B SHRS RIGS BUSISS: MGMT owns SC TIW SMICODUCTOR MUFCTURIG COMPY IMITD (TSMC) IS OPRTS THR 12-ICH WFR FBS, FOUR IGHT-ICH WFR PRIC = SMICODUCTOR FOUDRY. TH COMPY IS GGD I TH FBS, O SIX-ICH WFR FB (FB 2) D TWO BCKD FBS 10 X PS MUFCTURIG, SIG, PCKGIG, TSTIG D (DVCD BCKD FB 1 D 2). IT SO MGS TWO COMPUTR-IDD DSIG OF ITGRTD CIRCUITS D OTHR IGHT-ICH FBS T ITS SUBSIDIRIS, WFRTCH, C I TH SMICODUCTOR DVICS D TH MUFCTURIG OF MSKS. IT UITD STTS D TSMC CHI COMPY IMITD. ITS OPRTS THROUGH FOUDRY SGMT. TH FOUDRY SGMT IS XPORTORY WORK FOCUSS O TRSISTORS D TCHOOGIS, 100 GGD I MUFCTURIG, SIG, PCKGIG, TSTIG D SUCH S THR DIMSIO (3D) STRUCTURS, STRID-YR COMPUTR-IDD DSIG OF ITGRTD CIRCUITS (IC) D OTHR COMPMTRY MT-OXID SMICODUCTOR (CMOS), SMICODUCTOR DVICS D TH MUFCTURIG OF MSKS. IT HIGH-MOBIITY MTRIS D 3D IC DVICS U W K Y PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP TWD 6.73T SS TWD BI TIW PS RTIG 66 TWD259.50(OH -2%) Up 33.42% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(7 STBIITY) +10% %(9 STBIITY) +16% COMPOSIT RTIG IVT T/O 4.3x DBT % %: 16%: 11% TX RT %: 13%: 13% : : BCKOG X '16 BK.V R&D 7.5% 7(2.7%) DIV GR RT+20% (15) DIV BT 1.46(56) PH 0.04(0.04) TIWGHT Global Focus M TWD % C VOUM 200 M SP Q -49% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 30.7% +24.0% /8B DC % % 32.3% +23.6% /8B MR % % 32.6% +25.1% /8B JU % % 36.5% +25.9% /8B SP % % 35.9% +27.8% /8B DC % % 35.6% +29.1% /8B MR % % 38.7% +32.3% /8B JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: lec-semiconductor Mfg % % 35.4% +29.7% /8B SP % % 35.8% +27.0% /8B DC % % 31.8% +24.3% /8B MR % % 32.7% +25.2% /8B JU % % 37.2% +25.2% /8B SP % % 38.2% +25.6% /8B DC % % 37.5% +26.1% /8B MR % % 31.0% +27.6% /8B JU 17 FOR IFORMTIO, C OR VISIT % % 35.7% +25.3% 100 M 80 M DC Q % '13-18 P..'S 2144/8B SP 17 DC 17 OW OW HI ST 9X 17X 16X MR 18 TM DTGRPHS 2/2/2018

81 TIW tŝŷďžŷě ůƚŷ t/ dt W^ ϭϯ dž ϯ ϴϯ ϯ ϱϭ ϯ ϭϳ Ϯ ϴϯ Ϯ ϱϭ Source: Corporate Website Ϯ ϭϳ Ϯ ϬϬ ϭ ϴϯ ϭ ϱθ Winbond ltn. d /t džđś dtϭϭϭϯϯϰϰϭϭϵ нθθϲ ϰϯ ϱϯϭ ϴϭϲϴ W^ ZĂŶŬ ϳϭ ůğđͳ^ğŵŝđžŷěƶđƚžƌ DĨŐ ǁŝŶďŽŶĚ ĐŽŵ DŬƚ ĂƉ dt ϲϵ ϵϵ ^ĂůĞƐ dt ϰϯ ϰϯ d /t ^ŚĂƌĞƐ ϯ ϱθϭ &ůžăƚ Ϯ ϱϳθ W^ ƵĞ ŝŷ ϱϵ ĂLJƐ ĞͿ K, Ͳϯй D'Dd ŽǁŶƐ t/ K > dzk/ ^ KZW /^ WZ/ /W >>z ' ' / d, Z ^ Z, s >KWD d ^/' D h& dhz ^ > K& /d 'Z d /Z h/d^ / ^Ϳ D DKZz WZK h d^ DKZ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ͲϮ ϬϬ ͲϮ ϯϲ Ϭ ϵϳ ͲϬ Ϯϯ ͲϬ ϱϭ Ϭ Ϭϲ Ϭ ϴϯ Ϭ ϵϭ Ϭ ϴϭ W^ dt ϭ Ϭϭ ϮϱйŸ ϭ ϱϭ ϰϵйź ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z dt Ϭ ϳϳ Ϭ ϵϰ ϯ ϴϴ Ϯ ϴϭ Ϯ Ϭϳ ϭ ϴϱ Ϯ ϯϱ Ϯ ϳϬ Ϯ ϱϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϲй WZ d y D Z'/ й ͲϮϴй ͲϯϮй ϭϭй ͲϮй Ͳϰй Ϯй ϭϭй ϭϭй ϵй ϮϬϭϱͲϭϳ ϯϭй ϯθ ^ƚăďŝůŝƚljͿ ϲй Z dhz K Yh/dz й Ͳϭϳй ͲϮϰй ϭϭй ͲϮй ϭй ϴй ϵй ϳй ϮϬϭϯͲϭϳ ϲϱй ϳϳ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ͲϮϮй ϰй ϱϭй Ͳϭϯй Ͳϱй ϭй ϭϱй ϭй ϭϭй KDW Z d/' ^ > ^ D/>Ϳ dt Ϯϲ< Ϯϳ< ϰϭ< ϯϱ< ϯϯ< ϯϯ< ϯθ< ϯθ< ϰϯ< /s d K ϯdž Ϯϴ t <>z Ɖƌ Ϭϳ Ɖƌ ϭϰ Ɖƌ Ϯϭ Ɖƌ Ϯϴ DĂLJ Ϭϱ DĂLJ ϭϯ DĂLJ ϭϵ DĂLJ Ϯϲ :ƵŶ Ϭϭ d й ϮϬϭϰͲϭϲ Ϯϲй Ϯϯй ϭϱй d 'Z W, Z d/' ϰθ ϰθ ϰϲ ϰϵ ϰϲ ϰϵ ϰθ ϱϭ ϱϯ d y Z d ϮϬϭϰͲϭϲ ϭϵй ϭθй ϭϲй s' />z sk> ϬϬϬͿ ϴϬ ϵϯϯ ϳϴ ϵϯϯ ϴϬ ϮϱϮ ϳϵ ϳϭϵ ϴϯ ϰϲϭ ϴϰ ϲϰθ ϴϲ ϯϭϰ ϴϯ ϵϯθ ϵϭ ϲϯϲ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd Ϯ ϴ Ϯ Ϯ Ϯ ϭ Ϯ ϰ Ϯ ϯ Ϯ Ϯ Ϯ ϯ Ϯ Ϯ Ϯ ϲ Z Θ ϭϯ ϳϬй < s > ϭ ϱϱdž Ζϭϲ hd /^d Z d/' ϳϰ ϲϯ ϰϭ ϰϵ ϰϯ ϰϯ ϱϭ ϱϯ ϲϱ /s dt Ϭ ϲϭ ϯ ϭйͿ /s 'Z Zd Z > d/s ^dz 'd, ϵϲ ϵϳ ϵϲ ϵϱ ϵϱ ϵϱ ϵϱ ϵϱ ϵϳ d Ϭ ϴϵ ϳ ϬϬͿ >W, Ϭ Ϯϳ Ϭ ϭϯͿ 'ZKhW Z < ϰϵ ϱϯ ϱϯ ϰϰ ϳϬ Ϯϯ Ϯϴ Ϯϴ Ϯϱ ϮϬϭϲ DW>Kz ^ ϯ ϲϯϱ ϬйͿ ϰϯ ϯθ Solid PS consensus estimates ϯϰ Shares are breaking out to new highs after consolidating for 8 weeks ϭϯ ϭϯ ϭϭ ϵϳ н ϭϭ ϵ Ϭ ϲϳ ϴ Ϭ ϱθ ϳ Ϭ ϱϭ ϲ ϱ ϰ ϲ Strong ccum/dist. letter rating of +, and Relative Strength (RS) rating of 97. RS line is at new highs. Ϭ ϯϱ Ϭ ϯϯ dt нϭϭ ϳϬй ϭϱ Ϭ ϰϯ Ϭ ϯθ O eil Methodology The stock is currently trading 54% above the pivot of its most recent base. It is actionable once it forms a new base and breaks out. It has a strong technical profile with an Up/Down volume ratio of 1.5 and an /D Rating of B. The stock has an RS Rating of 97 and its RS line is on a steady uptrend. In Q3 2017, Winbond reported sales of TWD 12.55B, up 17% y/y (+10% q/q), led by strong revenue contribution of TWD 2.41B from its subsidiary uvoton Technology and strong sales growth in memory products, beating consensus estimates of TWD 12.08B. The Company s gross margin is 37%, a 430bps expansion q/q, led by an increase in the SP of memory products. The Company reported PS of TWD 0.57, up 217% y/y and the highest recorded PS since 2010, beating consensus estimates of TWD Ϯϲ Ϯϰ ϮϮ ϭϳ нϯ ϬϬ Ϭ ϴϯ Ϭ ϳϵ Ϭ ϳϱ Company Overview Winbond lectronics designs and manufactures integrated circuits and specialty memory products. Its major product lines include code storage flash memory, specialty DRM, and mobile DRM. ϯϭ ϭϵ ϭϵ ϭϭ Strong Up/Down Volume rating. It's significantly above 1.0 ϭ Ϭϴ ϭ ϬϬ Ϭ ϵϯ Winbond lectronics (WI.TW) is one of the leading providers of integrated circuits (IC) and flash storage and specialty memory products. The growing demand for flash memory and specialty memory products continues to boost revenues. WZ/ ϰϲ ϭ ϰϯ ϭ Ϯϱ >K' &ŝdžğěͿ Ϭ Ϯϴ Ϭ Ϯϱ ϰ Ϯ ϯ ϴ ϯ ϰ ϯ Ϭ ϮϮ Ϭ ϮϬ Ϭ ϭθ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Ϭ ϭϳ Ϭ ϭϱ Top and bottom line is expected to improve as the company adds more production capacity and OR flash memory prices rise Shares have been rallying on above-average volume = institutional accumulation Ϭ ϭϯ Ϯ ϭ ϴ ϭ ϲ >K' sk>hd The number of funds holding Winbond shares continues to increase ϰϭϭd ϮϵϮ ϳD ϮϬϬD ͲϭϮй ϳϬD ϯϭd Ϯ&/ / >^ ĞĐ ϭϯ DĂƌ ϭϯ ϵ W^ dt Ϳ ͲϬ ϭϱ ͲϬ ϭϭ й W^ й, ' нϱϯй нϰϰй ϰ^ > ^ D/> dt Ϳ ϳ ϴϲϵ ϱ ϳ ϲϳϱ ϭ :ƵŶ ϭϯ Ϭ ϭϭ ^ĞƉ ϭϯ Ϭ Ϭϰ ĞĐ ϭϯ Ϭ ϬϮ DĂƌ ϭϰ Ϭ ϭϭ :ƵŶ ϭϰ Ϭ ϭϵ ^ĞƉ ϭϰ Ϭ Ϯϱ ĞĐ ϭϰ Ϭ Ϯϵ DĂƌ ϭϱ Ϭ Ϯϳ :ƵŶ ϭϱ Ϭ ϮϮ ^ĞƉ ϭϱ Ϭ ϭθ ĞĐ ϭϱ Ϭ Ϯϯ DĂƌ ϭϲ Ϭ ϮϮ :ƵŶ ϭϲ Ϭ ϭθ ^ĞƉ ϭϲ Ϭ ϭθ ĞĐ ϭϲ Ϭ Ϯϯ нϯϭϭй ϴ ϴϰϱ ϴ нϭϰϰй ϴ ϯϭϵ Ϯ нϭϭϯй ϴ ϯϭϱ ϰ нϯϭϭй ϴ ϳϱϭ Ϭ нϵϭй ϵ ϳϰϮ ϰ нϱϯϱй ϵ ϵϯϭ ϰ нϭ<й ϵ ϱϲϰ ϴ нϭϳϭй ϵ ϳϮϯ ϴ нϭϲй ϵ ϮϱϮ ϭ ͲϮϴй ϵ ϱϯϯ ϵ ͲϮϭй ϵ ϴϰϬ ϰ Ͳϭϵй ϭϭ Ϭϴϲ ϵ Ͳϭϴй ϭϭ ϰϵϲ ϵ Ϭй ϭϭ ϳϯϮ ϳ Ϭй ϭϭ ϳϳϱ Ϯ й^ > ^ й, ' нϳй нϯй йd Z'/ &d Z d y Ͳϳ Ϯй Ͳϰ ϳй ͲϮй Ͳϯй нϲй нϭϰй нϭϭй нϯϭй нϭϱй нϭϭй Ͳϱй Ͳϰй нϯй нϰй нϭϯй нϭϯй нϵй нϯй нϰ Ϯй нϭ ϲй нϭ ϳй нϰ ϯй нϳ ϯй нϵ ϯй нϭϭ Ϭй нϭϭ ϯй нθ ϳй нϳ ϭй нθ ϯй нϳ ϳй нϲ ϭй нϲ ϭй нϳ ϲй нϲ ϲй ϱϭ нϭϱϭ Ϭй ϱϰ ϲϯ нϭϭ Ϭй ϲϵ ϳϴ ϴϰ ϴϭ ϴϱ W^ й ^hzwz/^ ϱ&h ^ ϱϯ ϱϰ ϱϰ ϱϭ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϲϲ ϳϭ ϲϯ ϱθ ϲϭ ϱϵ DĂƌ ϭϳ Ϭ ϭϵ :ƵŶ ϭϳ Ϭ ϮϱĞ ^ĞƉ ϭϳ Ϭ ϮϴĞ ĞĐ ϭϳ Ϭ ϮϵĞ DĂƌ ϭθ Ϭ ϮϴĞ Ͳϭϰй нϯϵйğ нϱϲйğ нϯϲйğ нϰϳйğ ϭϭ ϰϯϱ Ϭ ϭϭ Ϭϭϰ ϮĞ ϭϭ ϯϯϱ ϬĞ ϭϭ ϰϯϲ ϰğ ϭϭ ϵϯϭ ϱğ нϱйğ нϲйğ нϲйğ нϱйğ W Ϯϰ ϮϬϭϳ Ɛƚ ϭϵ Ϭ ϱͳljƌ,ŝőś ϭϱϰ Ϭ ϱͳljƌ >Žǁ ϲ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϯdž tŝŷďžŷě ůƚŷ t/ dtͿ tğğŭůlj ĂƐ ŽĨ dśƶ :ƵŶĞ Ϭϭ ϮϬϭϳ Growth Drivers Winbond plans to expand its capacity in Fab C and has plans for producing 38nm DRM, with wafers per month (wpm) to reach 48K by the end of 2017 from 44K currently. DRM wpm will rise to 26K from 24K and Flash wpm will grow to 22K from 20K. By Q3 2018, total capacity is planned to reach the target of 52K wpm, with DRM and flash capacity equally split. Winbond plans to set up a new facility in the Southern Taiwan Science Park, for which land use has been approved. It plans to invest TWD 335B over the next ten years. Production will kick start in 2020, with a planned initial monthly capacity of 40K. Winbond signed a patent licensing agreement with Rambus to use Rambus patented technology (comprising server DIMM chipsets) for its integrated circuit products for five years. Wider adoption of MOD and TDDI displays and dual camera modules will likely spark a comeback in the OR Flash market, driven by increasing demand from IoT and Industry 4.0 applications. ooking Forward Consensus estimates have PS growing 62% and 103%, y/y, in 2017 and 2018, respectively. The next catalyst is the Company s Q earnings release on February 10, ocal Code: T2344 Bloomberg Symbol: 2344:TT ISI: TW

82 Winbond ltn. TIW WIBOD T. (WI.TW) TI C-SMICODUCTOR MFG 3.98B 3.18B SHRS RIGS BUSISS: MGMT owns SC WIBOD CTROICS CORP. IS PRICIPY GGD I TH MMORY PRODUCTS, MOG OTHRS. TH COMPY'S PRODUCTS R PRIC = RSRCH, DVOPMT, DSIG, MUFCTUR D S OF PRIMRIY PPID I COMPUTRS, COMMUICTIOS D COSUMR 10 X PS ITGRTD CIRCUITS (ICS) D MMORY PRODUCTS. TH COMPY CTROICS (3CS), SUCH S PRSO COMPUTRS, WIRSS PRIMRIY PROVIDS OGIC ICS, DYMIC RDOM CCSS MMORY TWORKS, ST-TOP BOXS, TVISIOS D DIGIT CMRS, (DRM) PRODUCTS, ICUDIG MOBI RM PRODUCTS, SPCITY MOG OTHRS. TH COMPY DISTRIBUTS ITS PRODUCTS I SI, DRM PRODUCTS D GRPHICS DRM PRODUCTS, S W S FSH TH MRICS D UROP U W K Y PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP TWD 93.13BI. SS TWD45.16 BI TIW PS RTIG 95 TWD23.40(OH -22%) Up 21.25% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(18 STBIITY) +6% %(73 STBIITY) +7% COMPOSIT RTIG IVT T/O PRIC SC x 28 DBT % %: 23%: 15% 19%: 18%: 16% TX RT : : BCKOG X '16 BK.V R&D 13.7% DIV 0.59(2.5%) DIV GR RT 0.20(0.07) BT 1.30(6) PH TIWGHT Global Focus M TWD % C / VOUM 300 M 200 M SP Q -23% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) 0.02 #+113% % 0.7% +0.6% /213M DC #+211% % 4.3% +2.7% /219M MR % % 7.3% +3.6% /244M JU % % 9.3% +5.8% /261M SP % % 11.0% +8.4% /247M DC % % 10.3% +9.9% /258M MR % % 8.7% +10.0% /263M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: lec-semiconductor Mfg % % 7.1% +9.3% /261M SP % % 8.3% +8.5% /257M DC % % 7.7% +7.7% /270M MR % % 6.1% +7.3% /293M JU % % 6.1% +7.1% /305M SP % % 7.6% +7.0% /308M DC % % 6.6% +6.5% /390M MR % % 8.7% +7.3% /441M JU 17 FOR IFORMTIO, C OR VISIT % % 16.6% +10.0% 40 M DC Q % '13-18 P..'S OW 6X OW 31X HI 153X ST 144/404M SP M 70 M DC 17 MR 18 TM DTGRPHS 2/2/2018

83 TIW WĂƌĂĚĞ dğđśŷžůžőŝğɛ W dt W^ ϭϵ dž ϲθ ϰϯ ϲϯ ϭϲ ϱϳ ϴϵ ϱϯ ϲϯ ϰϳ ϯϳ ϰϯ ϭϭ ϯϲ ϴϰ Source: Corporate Website ϯϭ ϱθ Parade Technologies d /t Kd džđś <z'ϲθϵϯ ϭϭθϱ ϰϭθͳϯϯϵͳϱϱϰϭ W^ ZĂŶŬ ϴϳ ƉĂƌĂĚĞƚĞĐŚ ĐŽŵ ůğđͳ^ğŵŝđžŷěƶđƚžƌ DĨŐ DŬƚ ĂƉ dt ϯϳ ϮϮ ^ĂůĞƐ dt ϵ ϰϵ d /t W^ ƵĞ ŝŷ ϲϳ ĂLJƐ ĞͿ IURP 3YRW Q :HHV W Z d,k>k'/ ^ >d /^ ' ' / d, Z ^ Z, s >KWD d D Z< d/' ^ > K&,/',Ͳ^W s/ K /d Z& /' WZK ^^/' /d 'Z d /Z h/d,/w^ &KZ WZK h d^ ^h, ^,/', &//d/k d > s/^/k, dsͿ ^ d^ >/Yh/ Zz^d > /^W> z > Ϳ DK/dKZ^ DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ Ϭ ϭϭ ϯ ϳϵ ϴ ϮϬ ϭϯ ϳϱ ϵ Ϯϱ ϭϲ ϰθ ϭϱ ϯϭ ϭθ Ϭϰ Ϯϯ ϭϯ ϮϴйŸ W^ dt Ϯϳ ϱϯ ϭϵйÿ ^, &>Kt ^,Z dt Ϭ ϰϯ ϰ ϮϮ ϵ Ϭϰ ϭϰ Ϭϵ ϭϭ ϯϰ ϭϵ ϴϬ ϭϵ ϱϭ Ϯϱ ϰϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ϮϬй WZ d y D Z'/ й ϭй ϭϳй Ϯϯй ϯϯй ϭθй ϮϮй ϭϳй ϭϲй ϮϬϭϱͲϭϳ ϳй ϱ ^ƚăďŝůŝƚljͿ ϮϮй Z dhz K Yh/dz й ϲϯй ϯϰй ϰϲй ϭϵй Ϯϲй ϭϵй ϭϵй ϮϬϭϯͲϭϳ ϭϯй ϭθ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϭϯϰй ϰϲй ϭϭϱй ͲϭϮй ϰθй ϭϱй Ϯϳй KDW Z d/' ^ > ^ D/>Ϳ dt ϳϭϭ ϭ ϱϵϯ Ϯ ϯϯϭ ϰ ϳϴϭ ϰ ϮϭϮ ϲ ϮϮϱ ϳ ϭϵϭ ϵ ϭϭϳ /s d K ϲ ϵdž ϲϵ t <>z :Ƶů Ϭϳ :Ƶů ϭϰ :Ƶů Ϯϭ :Ƶů Ϯϴ ƵŐ Ϭϰ ƵŐ ϭϭ ƵŐ ϭθ ƵŐ Ϯϱ ƵŐ ϯϭ d й ϮϬϭϰͲϭϲ Ϭй Ϭй Ϭй d 'Z W, Z d/' ϳϮ ϳϳ ϳϮ ϳϲ ϳϯ ϲϵ ϳϯ ϳϰ ϳϯ d y Z d ϮϬϭϰͲϭϲ ϵй ϴй ϵй s' />z sk> ϬϬϬͿ ϭ ϭϳϰ ϭ ϮϯϬ ϭ ϯϭϭ ϭ ϯϵϲ ϭ ϱϲϭ ϭ ϲϭϱ ϭ ϰϰϭ ϭ ϰϯϲ ϭ ϱϭϳ <>K' ϮϬϭϰͲϭϲ ϭϱ ϳϬй < s > ϰ ϳϱdž Ζϭϲ hw Kt sk>hd ϭ ϲ Ϯ Ϭ ϭ ϵ ϭ ϴ ϭ ϱ ϭ ϱ ϭ ϭ ϭ Ϯ ϭ ϯ Z Θ hd /^d Z d/' ϱϭ ϱϵ ϱϯ Ϯϲ ϭϵ ϭϱ ϭϱ ϯϭ ϯϰ /s dt ϴ ϴϴ ϭ ϵйͿ /s 'Z ZdнϮϱй ϭϵͿ ϭ Ϯϴ ϭϲ ϬϬͿ >W, Ϭ ϭϭ Ϭ ϬϱͿ Z > d/s ^dz 'd, ϴϰ ϵϭ ϵϭ ϴϵ ϴϴ ϴϵ ϴϴ ϴϵ ϵϭ d 'ZKhW Z < ϮϮ ϭθ ϭϱ ϭϱ ϭϲ ϭϱ ϭϰ ϭϯ ϭϯ ϮϬϭϲ DW>Kz ^ ϮϮϰ ϯϯйͿ Ϯϲ ϯϯ Ϯϰ Ϯϭ ^ŚĂƌĞƐ ϳϳD &ůžăƚ ϲϲd D'Dd ŽǁŶƐ K, ͲϮй Company Overview Parade is the sole supplier of embedded DisplayPort timing controllers (edp TCO) for pple s ipad and MacBook products. In 2016, pple accounted for 47% of revenues. Other major customers include Samsung, OPPO, and Huawei. O eil Methodology The stock recently broke out of a flat base after consolidating for 6 weeks. It is trading 10% above its pivot. The stock has very strong O eil Ratings and Rankings, including an PS Rank of 96, RS Rating of 92, and /D Rating of. The Company reported Q results, with revenue of TWD 2.743B, up 31% y/y, beating consensus estimates of TWD 2.694B. Operating margin expanded 530bps y/y to 20.7%, mainly led by lower R&D and SG& expenses. The Company reported PS of TWD 8.65, up 119% y/y, beating the consensus of TWD This is due to one-time tax benefit/refund of TWD 1.99 per share. Growth Drivers The T-CO business is expected to show strong growth due to order inflows from pple. Parade expects its touch controller business to grow as pple launched new ipad models in H The Company expects the penetration of edps for high-end notebooks to increase. Parade controls 50% of this market. WZ/ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ϭϭϭϭ ϵϭϭ ϴϬϬ ϳϬϬ Shares are breaking out to new highs after consolidating for six weeks ϲϭϭ ϱϭϭ ϰθϭ ϬϬ ϰϲϭ dt ϮϮ ϭϭ нϭϱ ϱϭ ϰϯϭ нϯ ϯϯй ϮϬ ϬϬ ϭϵ ϰθ ϭϳ ϴϵ ϯθϭ High PS Rank ϯϰϭ ϭϱ ϳϵ Parade Technologies (PD.TW) develops mixedsignal integrated circuits (ICs) for various display and high-speed interface standards used in consumer electronics. Its leading position in embeded DisplayPorts (edps) is its biggest growth catalyst. >K' &ŝdžğěͿ ϯϭϭ ϵϭ н ϭϯ ϲθ ϭϯ ϲϯ ϭϭ ϱθ ϮϲϬ ϮϰϬ ϮϮϬ ϭϭ ϬϬ ϭϵϭ ϴ ϵϱ ϭϳϭ ϳ ϴϵ ϭϱϭ ϲ ϴϰ ϲ ϯϯ ϱ ϳϵ ϭϯϭ ϭϯϭ ϭϭϭ Strong Relative Strength rating of 90, and ccum/dist. rating of B+ ϱ Ϯϲ ϭϭϭ ϰ ϳϰ ϵϭ ϰ Ϯϭ ϴϬ ϯ ϲθ ϳϬ ϯ ϭϲ Top and bottom line growth is set to accelerate Shares have been trending higher on above-average volume Ϯ ϲϯ Ϯ ϰϯ ϲϭ ϱϭ ϰϲ >K' sk>hd ϴD ϳ ϰd ϱd нϯθй ϯd ϮD Ϯ&/ / >^ DĂƌ ϭϯ :ƵŶ ϭϯ ϱ W^ dt Ϳ Ϭ ϲθ ϭ ϲϯ й W^ й, ' Ͳϳϰй Ͳϱϵй ϭ^ > ^ D/> dt Ϳ ϲϭϳ Ϯ ϴϭϬ ϴ ^ĞƉ ϭϯ Ϯ ϯϳ ĞĐ ϭϯ ϰ ϲϭ DĂƌ ϭϰ ϯ ϰϳ :ƵŶ ϭϰ ϯ ϳϱ ^ĞƉ ϭϰ ϱ ϭϯ ĞĐ ϭϰ ϰ ϭϯ DĂƌ ϭϱ ϯ ϰϯ :ƵŶ ϭϱ ϯ ϲϯ ^ĞƉ ϭϱ ϰ Ϯϴ ĞĐ ϭϱ ϯ ϵϳ DĂƌ ϭϲ ϰ ϳϳ :ƵŶ ϭϲ ϰ ϲϲ ^ĞƉ ϭϲ ϰ Ϭϯ ĞĐ ϭϲ ϰ ϱθ DĂƌ ϭϳ ϰ ϵϯ :ƵŶ ϭϳ ϱ ϵϱ ^ĞƉ ϭϳ ϲ ϮϵĞ ĞĐ ϭϳ ϲ ϭϵğ DĂƌ ϭθ ϱ ϴϵĞ :ƵŶ ϭθ ϲ ϵϱğ ͲϰϬй ϭ ϭϳϯ Ϯ нϱϭй ϭ ϲϭϭ ϴ нϰϭϭй ϭ ϯϰϳ ϵ нϭϯϭй ϭ ϰϭϭ ϭ нϭϭϲй ϭ ϳϳϬ Ϭ ͲϭϬй ϭ ϲϵϳ Ϯ Ͳϭй ϭ ϱϭϳ ϵ Ͳϯй ϭ ϱϯϭ ϱ Ͳϭϳй ϭ ϵϰϰ ϯ Ͳϰй Ϯ ϮϬϲ ϳ нϯϵй Ϯ ϯϰϭ ϳ нϯθй Ϯ ϮϮϵ ϵ Ͳϲй Ϯ Ϭϴϵ Ϯ нϭϱй Ϯ ϰϰϲ ϴ нϯй Ϯ ϯϱϭ ϳ нϯθй Ϯ ϱϵϵ ϴ нϱϲйğ Ϯ ϲθϵ ϳĞ нϯϱйğ Ϯ ϳϰϭ ϵğ нϯϭйğ Ϯ ϲϯθ ϯğ нϭϳйğ Ϯ ϵϱϯ ϴĞ й^ > ^ й, ' ͲϰϮй Ͳϰϭй йd Z'/ &d Z d y нθ Ϭй нϭϰ ϲй Ͳϭϴй нϳϰй нϭϭθй нϳϰй нϱϭй нϱй нϭϯй нθй нϭϭй нϯϭй нϱϰй нϰϳй нϳй нϭϭй Ϭй нϭϳй нϯϵйğ нϭϯйğ нϭϯйğ нϭϰйğ нϭϰ ϴй нϯϭ Ϭй нϭϵ ϭй нϭϯ ϭй нϭϵ ϳй нϭϳ ϵй нϯϭ ϲй нϯ ϵй нϭθ Ϯй Ͳϵ ϳй нϭϲ ϴй Ͳϯ Ϭй нϭϳ ϴй Ͳϵ ϰй нϭϲ ϱй нϰ ϱй нϭϯ ϱй нϭϱ ϯй нϰ ϯй нϭϱ ϳй нϭϰ ϱй нϭϰ Ϯй нϭϱ ϴй Ͳϭ ϴй нϭϳ ϯй ϰϵ ϰϯ ϱϳ ϱϭ ϱϯ ϲθ ϲϯ ϰϯ ϰϭ ϭϭϯ ϭϭϯ ϭϭϯ W^ й ^hzwz/^ ϲ&h ^ ϮϬ Ϯϳ ϯϳ ϰϲ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭϭϳ ϵϱ W Ϯϰ ϮϬϭϳ Ɛƚ ϮϬ ϴ ϮϬϭϴ Ɛƚ ϭϳ ϱ ϱͳljƌ,ŝőś ϯϭ ϱͳljƌ >Žǁ ϭϭ ǀƐ /ŶĚ ǀŐ ϭ Ϯdž WĂƌĂĚĞ dğđśŷžůžőŝğɛ W dtͿ tğğŭůlj ĂƐ ŽĨ dśƶ ƵŐƵƐƚ ϯϭ ϮϬϭϳ Demand for Parade s edp TCO is expected to increase due improving ipad sales and increased technical specifications (greater display size, refresh rates, and pixel usage) in new ipads. Parade has designed high-speed HDMI and PCI products for B and server makers, which are expected to have robust demand in Parade enables high-speed data transmission rates, minimizing power consumption and distortions. It is also a leader in USB-C connectivity devices, with a TM CGR of 89% during Cypress generated $90M in revenues from this unit in In ugust 2015, Parade Technologies acquired TrueTouch s mobile business for $100M. The acquisition expanded the Company s TM and enabled Parade to enter the datacenter market. The high-speed interface segment of this market is still in its early days and is expected to reach $200M by ooking Forward For Q4 2017, sales guidance of TWD 2.520B 2.763B ($83.5M 91.5M), versus consensus estimates of TWD 2.744B. Gross margin is guided to be 40 43%. The next catalyst is the Company s Q earnings release on February 3, ocal Code: T4966 Bloomberg Symbol: 4966:TT ISI: KYG

84 Parade Technologies TIW PRD TCHOOGIS (PD.TW) XTO C-SMICODUCTOR MFG 78.37M 72.89M SHRS RIGS BUSISS: MGMT owns SC PRD TCHOOGIS, TD. IS GGD I TH RSRCH, DISPYPORT SWITCH PRODUCTS, JITTR CIG RPTRS, PRIC = DVOPMT, MRKTIG D S OF HIGH-SPD VIDO DISPYPORT TRSMITTRS, SRI DVCD TCHOOGY 10 X PS ITRFCIG D PROCSSIG ITGRTD CIRCUIT CHIPS FOR TTCHMT (ST)/PRIPHR COMPOT ITRCOCT XPRSS PRODUCTS, SUCH S HIGH DFIITIO TVISIO (HDTV) STS D (PCI) RDRIVRS, USB RPTRS, HIGH-DFIITIO MUTIMDI IQUID CRYST DISPY (CD) MOITORS. TH COMPY'S VRIOUS ITRFC (HDMI)/DIGIT VISU ITRFC (DVI) SOURC 220 PRODUCT CTGORIS ICUD DISPYPORT CD TIMIG COTROR PRODUCTS D HDMI/DVI SIK PRODUCTS. PRD TCHOOGIS, PRODUCTS, TRUTOUCH TOUCHSCR COTROR PRODUCTS, IC., SUBSIDIRY OF PRD TCHOOGIS, TD., IS GGD 200 DISPYPORT CD MOITOR COTRORS, DISPYPORT FORMT I TH DVOPMT OF DISPYPORT DIGIT VIDO ITRFC 190 COVRTRS, UIVRS SRI BUS (USB) TYP-C COCTIVITY, STDRD U W K Y 2008 PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP TWD 46.24BI. SS TWD10.14 BI TIW PS RTIG 96 TWD590.00(OH -7%) Up 22.66% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (8 STBIITY) +20% %(18 STBIITY) +22% COMPOSIT RTIG IVT T/O 6.9x DBT % %: 0%: 0% %: 8%: 9% TX RT : : BCKOG X '16 BK.V R&D 15.7% DIV 8.88(1.5%) DIV GR RT+25% (19) BT 1.46(11) PH 0.16(0.07) TIWGHT Global Focus M TWD481-13% B VOUM 10 M 6M SP Q -36% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 21.0% +18.6% /6455 DC % % 19.1% +22.9% /5599 MR % % 19.7% +26.8% /5251 JU % % 21.6% +29.6% /6293 SP % % 18.2% +26.0% /5009 DC % % 16.8% +24.7% /5452 MR % % 17.8% +24.7% /7831 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: lec-semiconductor Mfg % % 16.5% +20.9% /7044 SP % % 13.5% +19.2% /7130 DC % % 15.3% +20.3% /7455 MR % % 15.7% +21.7% /13699 JU % % 14.5% +19.9% /14714 SP % % 14.2% +19.4% /11749 DC % % 15.8% +19.3% % % 17.3% +21.0% % % 24.6% +24.6% 109/ / /18326 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT M 2M DC Q % '13-18 P..'S OW OW HI ST DC 17 10X 23X 30X MR 18 TM DTGRPHS 2/2/2018

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WZ/ ϰϯϭ ϯθϭ ϯϰϭ ϯϭϭ Ϯϵϵ ϬϬ нϯϵ ϬϬ ϮϲϬ Strong growth rates dt нϭϭ ϳϰй ϮϰϬ ϮϮϬ ϭϵϭ ϵϲ н ϭϳϭ ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ Best PS rank ϭϭϭ ϵϭ Rising R/S line with strong R/S rating ϴϬ ϳϬ 40-Week M ϲϭ ϱϭ ϰϲ ϰϯ 10-Week M Company Overview SMedia Technology designs high-speed interconnection solutions and offers products such as data storage controller integrated circuits (ICs) and super-speed universal serial bus (USB) interface ICs sales breakdown: controller chips, 30%; switches, 45%; hosts, 25%. Its super-speed interconnection comprises display interfaces, such as high-definition multimedia interface (HDMI) and display adapters. O eil Methodology The stock is currently trading 10% below the pivot of its most recent base. It has strong support at its 10-WM at TWD Given the strong outlook for 2018, the stock can be bought once it breaks out of its base. It has a strong technical profile with an Up/Down volume ratio of 1.1 and an /D Rating of C+. The stock has an RS Rating of 80 and a top Industry Group Rank of 3. In Q3 2017, SMedia reported sales of TWD 814M, up 30% y/y, led by growth of 50G/100G switches. Sales were below consensus estimates of TWD 869M, owing to seasonality. Operating margin expanded 600bps y/y to 28.3%, led by a better product mix toward high-margin USB 3.1 and improving yield rates. The Company reported PS of TWD 3.49, up 75.0% y/y, beating consensus estimates of TWD >K' &ŝdžğěͿ ϱϭϭ ϰϲϭ Strong estimates Source: Corporate Website SMedia Technology (SM.TW) is a major integrated circuit designer that provides digital switches and USB devices. The Company benefits from the growing demand for USB Type-C devices and superspeed interconnection devices. W^ ƵĞ ϯ ϭϯ ϮϬϭϳĞ D'Dd ŽǁŶƐ ϯθ ϯϰ ϯϭ Ϯϲ Ϯϰ ϮϮ Strong forward quarterly growth ϮϬ ϭθ >/ sk>hd ϮϭD ϭϱd нϲй ϵd ϯ ϲd Ϯ&/ / >^ ^ĞƉ ϭϯ ĞĐ ϭϯ ϳ W^ dt Ϳ ϭ ϰϱ Ϭ Ϯϲ нϱϰй Ͳϱϰй W^ й, ' ϰ^ > ^ D/> dt Ϳ ϰϭθ ϰ ϮϵϮ ϯ нϭϭй ^ > ^ й, ' Ͳϵй DĂƌ ϭϯ Ϭ ϰϭ ͲϲϬй ϯϭϭ Ϭ :ƵŶ ϭϯ Ϭ ϱϰ Ͳϲϯй ϯϭϳ Ϯ ^ĞƉ ϭϯ Ϭ Ϯϰ Ͳϴϯй Ϯϳϳ ϴ ĞĐ ϭϯ Ϭ ϯϰ нϯϭй ϯϭϯ Ϭ DĂƌ ϭϰ Ϭ ϴϱ нϭϭϳй ϯϲϭ ϳ :ƵŶ ϭϰ ϭ Ϯϭ нϭϯϰй ϰϯϯ ϰ ^ĞƉ ϭϰ Ϭ ϵθ нϯϭθй ϯθϳ ϰ ĞĐ ϭϰ ϭ Ϭϭ нϭϵϳй ϯϰϯ ϱ DĂƌ ϭϱ Ϭ ϲϰ ͲϮϱй ϯθϵ Ϭ :ƵŶ ϭϱ Ϭ ϭϯ ͲϵϬй Ϯϵϲ ϭ ^ĞƉ ϭϱ ϭ ϲϯ нϲϱй ϰϯϭ ϳ ĞĐ ϭϱ ϭ Ϯϴ нϯϳй ϰϯθ ϳ DĂƌ ϭϲ ϭ ϭϭ нϳϯй ϰϭϰ ϵ :ƵŶ ϭϲ Ϭ ϵϯ нϲϳϱй ϯϳϲ ϳ ^ĞƉ ϭϲ Ϯ Ϭϭ нϯϰй ϲϯϲ ϭ ĞĐ ϭϲ Ϯ ϮϭĞ нϳϯйğ ϱθϲ ϬĞ DĂƌ ϭϳ ϭ ϳϬĞ нϱϱйğ ϱϯϱ ϬĞ :ƵŶ ϭϳ Ϯ ϵϲğ нϯϭθйğ ϳϯϰ ϬĞ ^ĞƉ ϭϳ ϯ ϱϱğ нϳϳйğ ϴϯϰ ϬĞ ĞĐ ϭϳ ϯ ϬϵĞ нϰϭйğ ϳϰϰ ϬĞ ͲϯϮй Ͳϯϭй Ͳϯϰй нϰй нϯϭй нϰϭй нϯϵй нϭϯй нθй ͲϯϮй нϭϭй нϯθй нϳй нϯϳй нϰϱй нϯϰйğ нϯϵйğ нϵϱйğ нϯϯйğ нϯϳйğ W^ й ^hzwz/^ ϭ &h ^ ϭϱ ϬϬϬ ^, Z ^, > z &h ^ W ϱϭ ϮϬϭϳ Ɛƚ Ϯϯ Ϭ ϱͳljƌ,ŝőś ϵϲ Ϭ ϱͳljƌ >Žǁ ϭϲ Ϭ ǀƐ /ŶĚ ǀŐ Ϯ ϲdž Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϯ ϰ ϭϳϵ ϳϵϰ ϭθϲ ϬϰϬ ϭϯ ϭϳ ϯϲ ϯθ Ϯϳ ϴϮϮ ϳϬϴ ϭ ϱθϱ ϱϲϲ ϯ ϱθϯ ϯϯϭ ϯ ϱϵϰ ϯϭϳ Ϯ Ϯϲϴ ϯϭϵ Ϯϵ Ϯϴ Ϯ ϱϭθ ϯϯϱ Ϯ ϯϵϭ ϯϯϱ ƐŵĞĚŝĂ dğđśŷžůžőlj ^D dtͿ tğğŭůlj ĂƐ ŽĨ dśƶ :ĂŶƵĂƌLJ Ϭϱ ϮϬϭϳ :ĂŶƵĂƌLJ Ϭϱ ϮϬϭϳ SMedia s integrated USB Type-C solutions are expected to further strengthen the gross margin of device controller chips, and boost segment sales and profits. The Company plans to extend into high-end PCI- switch solutions, featuring middle-to-high lane counts. It is also witnessing a strong adoption of its higher USB 3.1 Gen 2 of 10 gigabytes per second. By 2019, the Company s major customer, MD, plans to migrate to 7nm process in GPU avi, from the current 14nm/14nm+ node. By 2020, MD is expected to launch 7nm+ process architecture, which will be named extgen. MD s Ryzen 5 and 7 chipset helped SMedia grow its sales in ew products such as Ryzen 3, Ryzen Pro, and Mobile Ryzen Pro continue to drive the growth, as MD chipset to reach 56% of the Company s 2018 sales against 11% in ooking Forward Consensus estimates have the Company s PS growing at 64% and 103%, y/y, in 2017 and 2018, respectively. The next catalyst is the Company s Q earnings release on February 13, ocal Code: T5269 Bloomberg Symbol: 5269:TT ISI: TW

86 smedia Technology TIW SMDI TCHOOGY (SM.TW) TI C-SMICODUCTOR MFG 60.04M 30.62M SHRS RIGS BUSISS: MGMT owns SC SMDI TCHOOGIS, IC. IS TIW-BSD COMPY DVIC COTRO ICS, PRIPHR COMPOT ITRFC XPRSS PRIC = PRICIPY GGD I TH DSIG, DVOPMT, DISTRIBUTIO (PCI) BRIDG ICS D OTHRS. TH COMPY DISTRIBUTS ITS 10 X PS D WHOS OF HIGH-SPD ITRFC COTRO CHIPS, S W PRODUCTS I DOMSTIC MRKT D TO OVRSS MRKTS, S TH PROVISIO OF RTD TCHIC SRVICS. TH ICUDIG TH RST OF SI, TH MRICS, UROP D OTHR COMPY'S PRODUCTS ICUD HIGH-SPD SWITCH ICS, SIG RS. SWITCHS, V SHIFTRS, UIVRS SRI BUS (USB) U W K Y PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP TWD 20.89BI. SS TWD2.97 BI TIW PS RTIG 78TWD348.00(OH -16%) PRIC SC 700 Up 22.44% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(16 STBIITY) +26% %(39 STBIITY) +13% COMPOSIT RTIG IVT T/O 3.2x DBT % %: 0%: 0% %: 12%: 12% TX RT : : BCKOG X '16 BK.V R&D 20.7% DIV 4.28(1.2%) DIV GR RT+71% (98) BT 1.70(10) PH -0.04(-0.01) 0TIWGHT Global Focus M TWD % B / VOUM 7M 3M 2M SP Q -44% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH % % 6.4% +7.8% % % 13.2% +9.7% % % 15.8% +13.6% % % 14.2% +16.9% FUD/SHRS (000) DC 13 MR 14 JU 14 SP % % 16.6% +19.5% /188 DC % % 9.3% +17.7% /194 MR % % 2.2% +13.5% /863 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: lec-semiconductor Mfg % % 21.2% +15.6% /1618 SP % % 16.5% +15.9% /3761 DC % % 15.0% +17.1% /3771 MR % % 14.0% +22.6% /395 JU % % 18.2% +22.4% /638 SP % % 19.0% +24.1% /5209 DC % % 16.5% +26.0% /7172 MR % +24.7% /7485 JU 17 FOR IFORMTIO, C OR VISIT % % 25.8% +28.2% 1M 500 K DC Q % '13-18 P..'S 80/6709 SP 17 DC 17 OW OW HI ST 17X 59X 95X MR 18 TM DTGRPHS 2/2/2018

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Its offerings range from point of sale (POS) to full enterprise resource planning (RP), which include inventory management, customer relationship management, financial management, and supply management. The Company s major competitors include TOTVS, infor, SP, and Oracle. Q revenue breakdown: recurring, 82%; services, 18%. Z> нϭ ϳϬϬ ϭϵ Good PS profile Ϭ ϱϯ Ϭ ϱϯ Ϭ ϯϭ inx On is Brazil s leading software company, which provides ecommerce tools and business optimization products, services, and solutions to large retail players. WZ/ ϴϬ ϯ ϰ Ϭ ϬϵϬ ϯ Better than expected Q results Ϭ Ϭϳϴ Ϯ ϲ Good quarterly PS/revenue growth >K' sk>hd ϮD нϭϯй ϴϬϬ< ϲϯθ ϲ< Ϯ&/ / >^ DĂƌ ϭϯ :ƵŶ ϭϯ ϲ W^ Z>Ϳ Ϭ Ϭϵ Ϭ ϭϭ й W^ й, ' ͲϱϬй нϯϯθй Ϯ^ > ^ D/> Z>Ϳ ϲϯ ϴ ϳϰ ϯ й^ > ^ й, ' нϯϰй нϯϯй ^ĞƉ ϭϯ Ϭ ϭϰ ĞĐ ϭϯ Ϭ ϭϯ DĂƌ ϭϰ Ϭ ϭϭ :ƵŶ ϭϰ Ϭ ϭϭ ^ĞƉ ϭϰ Ϭ ϭϳ ĞĐ ϭϰ Ϭ ϭϭ DĂƌ ϭϱ Ϭ ϭϭ :ƵŶ ϭϱ Ϭ ϭϭ ^ĞƉ ϭϱ Ϭ ϭϯ ĞĐ ϭϱ Ϭ ϭϭ DĂƌ ϭϲ Ϭ ϭϭ :ƵŶ ϭϲ Ϭ ϭϯ ^ĞƉ ϭϲ Ϭ ϭϯ ĞĐ ϭϲ Ϭ ϭϭ DĂƌ ϭϳ Ϭ ϭϲ :ƵŶ ϭϳ Ϭ ϭϯ ^ĞƉ ϭϳ Ϭ ϭϱğ ĞĐ ϭϳ Ϭ ϭϵğ DĂƌ ϭθ Ϭ ϭϵğ :ƵŶ ϭθ Ϭ ϭϲğ Ͳϭϴй Ͳϭϵй нϭϭй Ϭй нϯϭй Ͳϭϱй нϭϭй Ϭй ͲϮϵй Ϭй Ͳϵй нϵй нθй Ϭй нϲϭй нθй нθйğ нϳϯйğ нϭϵйğ нϯϯйğ ϮϬϭϳ Ɛƚ ϯϱ ϵϭ ϳϲ ϵ нϯθй ϴϬ ϰ нϯϳй ϴϮ ϴ нϯϭй ϵϭ Ϭ нϯϭй ϵϯ ϰ нϯϭй ϭϭϯ ϲ нϯθй ϭϭϱ ϭ нϯϳй ϭϭθ ϴ нϯϭй ϭϭϯ ϱ нϯϯй ϭϯϭ ϴ нϭϵй ϭϭθ ϭ нϭϯй ϭϯϯ ϰ нϭϯй ϭϯϯ ϰ нϵй ϭϯϯ Ϭ нθй ϭϯϰ ϭ нϭϰй ϭϯϱ ϰ нϭϭй ϭϰϱ ϲğ нϭθйğ ϭϱϯ ϯğ нϭϱйğ ϭϰϵ ϳĞ нϭϯйğ ϭϱϰ ϲğ нϭϰйğ ϮϬϭϴ Ɛƚ ϯϭ ϲϯ нϭϯϯ ϵй нϯϱ ϳй W^ й ^hzwz/^ ϭϳd ϮϰD ^, Z ^, > z &h ^ нϯϰ ϳй ϮϳD ϯϯd ϯϰd Ͳϯ ϲй ϯϱd нϭϰ ϯй ϯϲd ͲϳϬ ϭй ϰϯd Ͳϳϯ ϴй ϰϭd ͲϳϮ ϭй ϰϯd Ͳϳϰ ϭй ϯϲd Ͳϳϰ ϰй ϯϲd Ͳϲϴ ϴй ϯθd Ͳϯ ϵй ϯϳd Ͳϭϯ ϳй ϰϱd Ͳϰϭ ϵй ϱϭd Ͳϭϲ ϲй ϱϱd Ͳϯϭ Ϭй ϱϳd ϱϵd ϳϱ ϵϭ ϵθ ϭϭϲ ϭϭϭ ϭϯϰ ϭϯϵ ϭϰϵ ϭϰϱ ϭϰϯ ϭϰθ ϭϱϱ ϮϬϮ ϭϵϯ Ϯϭϭ ϭϵϵ ϭϵϵ &h ^ ϲϱ ϳϬ Π ϮϬϭϳ t/>>/ D KΖ /> н K / W ϰϭ ϱͳljƌ,ŝőś ϰϰ Ϭ ϱͳljƌ >Žǁ ϭϵ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϳdž >ŝŷdž KŶ >/y ZͿ tğğŭůlj ĂƐ ŽĨ DŽŶ ŽǀĞŵďĞƌ Ϭϲ ϮϬϭϳ O eil Methodology The stock broke through resistance at BR 20 from a 49-week consolidation and subsequently reported better-than-expected Q3 results. The Company s gross revenue grew 17% y/y to BR 165.7M, driven by recurring revenue, which grew 13% y/y to BR 135.6M (representing 82% of total gross revenues). Service revenue came in at BR 30.1M (+ 40% y/y). Its client base increased by 272 customers q/q, up 12% y/y, to 45,157. Its client retention rate of 98.8 was 10bps higher than Q It has a low customer concentration, with its largest customer representing only 2.5% of revenues. Currently, about 45% of recurring revenues come from offers that are based in the cloud. bout 82% of its revenues are recurring. The Company has formed partnerships with Rede and Itaú. Rede s platform will allow retailers to download RP software to the smart POS terminal, and inx is one of the companies authorized to provide this software. inx has focused on larger retail chains until now and Rede s platform will help expand inx s addressable market by providing solutions to small- and medium-sized retail companies. On October 18, the Company approved the acquisition of 100% of the shares of ShopBack, a leader in technologies for retention, reengagement, and recapture through Big Data and Intelligence for engagement. The acquisition provides inx with huge cross-selling opportunities, apart from strengthening its ecommerce business. Growth Drivers The Company benefits from a large and diversified base of customers ranging from SMBs to large retail chains. It has expanded its customer base from 12,771 in 2012 to approximately 45,157 as of September ooking Forward IDC estimates that the TM of Brazil s retail management software market is BR 9.0B and expects it to grow at a CGR of 12% from 2014 to Consensus estimates have the Company s PS growing at 30% and 13%, y/y, in 2017 and 2018, respectively. ext Catalyst: Q results expected on February ocal Code: BRIX3 Bloomberg Symbol: IX3:BZ ISI: BRIXCOR0

88 inx On BRZI IX O (IX.BR) BSP COMP SFTWR-SPC TRPRS M M SHRS RIGS BUSISS: MGMT owns SC IX S IS BRZI-BSD COMPY PRIMRIY GGD I TH UTOMTIO SOFTWR, WHICH PRFORM CSSRY OPRTIOS PRIC = SOFTWR DVOPMT SCTOR. TH COMPY PROVIDS PRODUCTS, FROM TH POIT OF S (POS), UTI TH FU TRPRIS 10 X PS SRVICS D SOUTIOS FOR BUSISS OPTIMIZTIO, S W S RSOURC PIG (RP), WHICH ICUDS, MOG OTHR TOOS FOR -COMMRC MRKT. IT SPCIIZS I TCHOOGY FTURS, IVTORY MGMT, CUSTOMR RTIOSHIP SOUTIOS FOR RTI D WHOS CTIVITIS I SUCH MGMT, FICI MGMT, MGMT OF PRODUCTS 8.00 SGMTS S PPR, GIFTS, BUIDIG MTRI, SUPRMRKTS, IFCYC D SUPPY MGMT. DDITIOY, TH COMPY PHRMCIS D CTROICS, MOG OTHRS. TH COMPY OFFRS PROVIDS CUSTOMIZTIO, TRIIG D OTHR SRVICS RTD ITS CUSTOMRS ITGRTD BUSISS MGMT SYSTM THT TO ITS PRODUCTS. ITS SUBSIDIRIS ICUD SYTHSIS RTI 7.00 COVRS TH TIR RTI CHI, STRTIG FROM BUSISS SOUTIOS S U W K Y 2008 PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP BR 3.47BI. SS BR MI BRZI 55 PS RTIG BR20.90(OH -9%) PRIC SC 90 Down 1.41% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (6 STBIITY) +15% %(10 STBIITY) +20% COMPOSIT RTIG IVT T/O 916.9x 97 DBT % %: 18%: 8% 19%: 22%: 26% TX RT : : BCKOG X '16 BK.V R&D 12.1% DIV 0.63(0.9%) DIV GR RT+26% (45) BT 0.33(5) PH 0.03(0.02) BRBOVS 2.80 Global Focus M BR % C / VOUM 4M 2M SP Q -57% BOW ST. PS (BR) % CHG SS(MI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 22.5% +15.2% /32558 DC % % 16.6% +11.1% /34097 MR % % 16.5% +11.1% % % 25.2% % % 15.0% % % 14.3% % % 14.4% % % 15.4% % % 12.9% % % 12.7% % % 14.3% / / / / / / / / /36896 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: Comp Sftwr-Spec nterprs % % 14.6% /44881 SP % % 13.6% % % 19.9% % % 15.8% DC Q % '13-18 P..'S OW OW HI ST / / / / /58584 DC 16 MR 17 JU 17 SP 17 DC 17 FOR IFORMTIO, C OR VISIT % % 13.6% 1M 700 K 19X 41X 44X MR 18 TM DTGRPHS 2/2/2018

89 MYSI DLJ Ő ^ĞƌǀŝĐĞƐ &K ϮϬ dž Source: Corporate Website Dz ' Dz My g Services hz^ D > z^/ džđś DzYϬϭϯϴKKϬϬϲ нϲϭ ϯ ϳϴϬϭ Ϭϭϴϴ W^ ZĂŶŬ ϵϵ ŵljğő ĐŽŵ ŵlj Žŵŵů ^ǀĐƐͲKƵƚƐŽƵƌĐŝŶŐ DŬƚ ĂƉ DzZϱ Ϯϳ ^ĂůĞƐ DzZϮϴϭ ϲϯd WĞƚĂůŝŶŐ :ĂLJĂ D > z^/ /ŶĐ ϮϬϬϬ ^ŚĂƌĞƐ Ϯ ϰϭϰ &ůžăƚ ϭ ϯϵϰ D'Dd ŽǁŶƐ >K' &ŝdžğěͿ WZ/ Break out of cup with handle on 2.6x the average daily ϯ volume Dz ' ^ Zs/ ^ Z, /^ D > z^/ Ͳ ^ KDW z ' ' / d, s >KWD d /DW> D d d/k K& Ͳ'Ks ZD d ^ Zs/ ^ Z > d ^ Zs/ ^ &KZ d, Ͳ'Ks ZD d //d/ d/s ^ t >> ^ /s ^dd d,k> /' h > Ͳ :h ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ ϬϮ Ϭ Ϭϯ Ϭ Ϭϲ W^ DzZ Ϭ Ϭϴ ϯϯйÿ Ϭ ϭϭ ϯθйÿ ^, &>Kt ^,Z DzZ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ ϬϮ Ϭ ϬϮ Ϭ Ϭϯ Ϭ Ϭϰ Ϭ Ϭϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϯϭй ϯϯй ϰϰй ϰϭй ϰϭй ϰϱй ϰϲй ϰθй ϱϭй ϮϬϭϰͲϭϲ ϱϳй ϭϯ ^ƚăďŝůŝƚljͿ ϱϯй Z dhz K Yh/dz й ϯϱй Ϯϵй Ϯϳй Ϯϰй Ϯϱй Ϯϳй ϯϯй ϯϭй ϰϯй ϮϬϭϮͲϭϲ ϰϭй ϭϲ ^ƚăďŝůŝƚljͿ ϯϰй ^ > ^ й, ' ϵϯй ϲй Ͳϵй Ϯϯй ϭϰй ϭϰй ϰϰй Ϯϵй ϵϵй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ DzZ ϰϵ ϱϯ ϰθ ϱϵ ϲϳ ϳϳ ϭϭϭ ϭϰϯ ϮϴϮ /s d K ϳϴ ϴdž ϵϯ t <>z :Ƶů Ϭϴ :Ƶů ϭϱ :Ƶů ϮϮ :Ƶů Ϯϵ ƵŐ Ϭϱ ƵŐ ϭϯ ƵŐ ϭϵ ƵŐ Ϯϲ ^ĞƉ Ϭϭ d й ϮϬϭϰͲϭϲ ϰ ϲй Ϯ ϰй Ϯϯй d 'Z W, Z d/' ϳϲ ϲϲ ϳϮ ϳϰ ϳϭ ϳϱ ϳϵ ϳϰ ϴϰ d y Z d ϮϬϭϰͲϭϲ ϭ Ϯй Ϭ Ϯϰй Ϭ ϲϭй s' />z sk> ϬϬϬͿ ϱ ϰϵϲ ϲ ϮϯϮ ϲ ϵϭϯ ϲ ϳϬϯ ϳ ϭϰϭ ϳ ϭϲϱ ϳ Ϯϱϰ ϳ ϰϭϯ ϴ ϰϯθ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd Ϭ ϵ Ϭ ϵ ϭ Ϯ ϭ Ϯ ϭ ϭ ϭ Ϭ ϭ Ϯ ϭ Ϯ ϭ ϯ Z Θ < s > ϭϯ ϭϱdž Ζϭϲ hd /^d Z d/' Ϭ ͲϮϮ ϭθ ϯϵ ϰϵ ϱϭ ϱϯ ϱϭ ϱϰ /s DzZ Ϭ ϬϭϮ Ϭ ϲйͿ /s 'Z Zdнϯϰй ϭϯͿ Z > d/s ^dz 'd, ϴϬ ϲϯ ϳϳ ϴϯ ϴϬ ϴϯ ϴϯ ϴϭ ϴϵ d Ϭ ϲθ ϰϰ ϬϬͿ >W, Ϭ ϭϭ ͲϬ ϬϴͿ 'ZKhW Z < ϵϲ ϭϭϭ ϭϭϭ ϵϵ ϭϭϯ ϵϵ ϳϮ ϴϭ ϯϱ Ϯ ϲ Ϯ ϰ Increased estimates Ϯ ϭϵϯ Ϯ DzZ нϭ ϭϲϭ ϭ ϵ нϳ ϴϴй ϭ ϳ Good growth rates ϴϵ ϭ ϱ ϭ ϯ ϭ Ϯ ϭ ϭ ϭ Best PS rank Increasing cash flow/share, pre tax margins and RO Improving /D, R/S and group rank Ϭ ϵ Ϭ ϴ Rising R/S line with good /D rating MyG Services (MYG.MY) serves as a communitybased information and service center for the public to access information, execute transactions, and interact with the Malaysian government. Its long-term contract with the government in a duopolistic market has been its revenue driver. Ϭ ϳ Ϭ ϲ Ϭ ϱ Ϭ ϰϲ 40-Week M Ϭ ϰϯ Ϭ ϯθ Ϭ ϯϰ Ϭ ϯ Ϭ Ϯϲ Ϭ Ϯϰ Ϭ ϮϮ 10-Week M Ϭ ϭϵ Ϭ ϭϳ Ϭ ϭϱ Company Overview The Company offers a variety of eservices, including electronic delivery of driver and vehicle registrations, licensing and summons services, and utility bill payments, among others. It also operates eservice centers that offer services like driver licensing courses and tests. O eil Methodology The stock has been consolidating for the last 29 weeks and is currently trading below its 200-DM with its next level of support at MYR We suggest investors hold current positions, as fundamentals look solid. Up/Down volume ratio of 1.7 and /D rating of B+ indicate institutional support. RS line is trading near its all-time high with strong RS Rating of 78. For Q1 FY 2018, the Company s revenue grew 25% y/y to RMB 98M, in line with expectations, driven mainly by the registration of illegal foreign workers and economies of scale. et profit increased 30% y/y to RMB 52.8M. The rise in profitability was also boosted by foreign worker rehiring program services and strong revenue contribution from motor vehicle trading-related services. Growth Drivers MyG is a dominant player in the two-player market and offers its services through its website, 100 eservice centers, and 1,000 kiosks. The Company obtained a five-year extension of its agreement with the Malaysian government in July 2014 that lasts through 2020 to continue providing electronic services. Ϭ ϭϯ Ϭ ϭϯ Ϭ ϭϭ Solid PS and revenue growth >/ sk>hd ϭϯϭd ϭϭϭd ϵϭd ϳϬD ϲϭ ϳD ϱϭd ϯϭd нϭϭϰй ϭϭ :ƵŶ ϭϭ &/ / >^ Ϭ ϬϬ W^ DzZͿ Ϭ ϬϬ W^ й, ' ϭϱ ϲ ϭϳ ϵ ^ > ^ D/> DzZͿ Ͳϲй нϯϰй ^ > ^ й, ' W^ й ^hzwz/^ ϭϵ ϭθ &h ^ ^ĞƉ ϭϭ Ϭ ϬϬ ϭϰ Ϯ нϭθй ĞĐ ϭϭ Ϭ ϬϬ DĂƌ ϭϯ Ϭ ϬϬ ϭϲ ϵ нϯϳй ϭθ ϯ нϭθй :ƵŶ ϭϯ Ϭ ϬϬ ϭϳ ϱ ͲϮй ^ĞƉ ϭϯ Ϭ ϬϬ ϭϲ ϭ нϭϯй ĞĐ ϭϯ Ϭ ϬϬ ϭϵ Ϯ нϭϯй DĂƌ ϭϯ Ϭ ϬϬ ϮϬ ϰ нϭϭй :ƵŶ ϭϯ Ϭ ϬϬ ϮϬ ϴ нϭϵй ^ĞƉ ϭϯ Ϭ ϬϬ ϮϬ ϰ нϯϳй ĞĐ ϭϯ Ϭ ϬϬ Ϯϯ ϱ нϯϯй DĂƌ ϭϰ Ϭ Ϭϭ ϯϭ ϲ нϱϭй :ƵŶ ϭϰ Ϭ Ϭϭ ϯϱ ϰ нϳϭй ^ĞƉ ϭϰ Ϭ ϬϬ Ϯϳ ϳ нϯϲй ĞĐ ϭϰ Ϭ Ϭϭ Ϯϵ ϴ нϯϳй DĂƌ ϭϱ Ϭ Ϭϭ :ƵŶ ϭϱ Ϭ Ϭϭ Ϭй Ϭй ϯϵ Ϭ нϯϳй ϰϱ ϭ нϯϳй ^ĞƉ ϭϱ Ϭ Ϭϭ ϲϭ ϳ нϭϭϵй нϯϭ Ϭй ĞĐ ϭϱ Ϭ ϬϮ DĂƌ ϭϲ Ϭ Ϭϭ :ƵŶ ϭϲ Ϭ ϬϮ нϭϭϭй Ϭй нϭϭϭй ϲϯ ϱ нϭϭϯй ϳϬ ϭ нθϭй ϴϳ ϯ нϵϰй ͲϮ Ϭй W ϯϳ ϮϬϭϳ Ɛƚ Ϯϳ ϱͳljƌ,ŝőś ϲϭ ϱͳljƌ >Žǁ ϭϯ ǀƐ /ŶĚ ǀŐ ϭ Ϭdž ϭϱ ϭϯ ϭϰ ϭϳ ϭϳ ϭϵ ϭϵ ϮϬ Ϯϴ ϱϭ ϱϳ ϳϯ ϴϳ ϭϭϯ ϭϯϭ ϭϭϭ ϭϭϰ ϭϯϲ ϭϰϯ ϭϰϲ ϱϭϲ ϭϯϭd ϭϰϭd ^, Z ^, > z &h ^ ϮϳϳD ϮϳϵD ϮϵϲD ϯϯϭd ϯϰϰd ϯϱϳd ϯθϭd ϯθθd ϰϭϱd ϰϭϳd ϯϲϭd ϰϲϵd ϰϵϲd ϱϭθd ϯθϯd ϯϲϵd ϰϯϭd ϰϭϰd ϰϭϱd Π ϮϬϭϲ t/>>/ D KΖ /> н K / ^ĞƉ DLJ Ő ^ĞƌǀŝĐĞƐ Dz ' DzͿ tğğŭůlj ĂƐ ŽĨ dśƶ ^ĞƉƚĞŵďĞƌ Ϭϭ ϮϬϭϲ Ĩ dśƶ ^ĞƉƚĞŵďĞƌ Ϭϭ ϮϬϭϲ The earnings outlook for the upcoming quarters looks positive, driven by growing immigration led by stronger FWP and illegal foreign workers (IFW) registrations. In ovember, MyG completed its GST Monitoring project (GSTM) Phase1, installing a monitoring system in all major F&B outlets nationwide. The Company is scheduled to start GSTM Phase 2 in mid The Company estimates that there are about 500,000 retail outlets nationwide. The Company started a new service, matching employers with IFWs in October. This service allows employers to source for new foreign workers and MyG receives RMB 1,000 for each IFW it matches with an employer. ooking Forward The Company has registered about 500,000 IFW and this figure is expected to double by December, boosting revenues. Consensus estimates have the Company s PS increasing 17% and 29% in FY 2018 and FY 2019, respectively. ext Catalyst: The Company s Q2 FY 2018 earnings are expected on February 28, ocal Code: 0138 Bloomberg Symbol: MYG:MK ISI: MYQ0138OO006

90 My g Services MYSI MY G SRVICS KS (MYG.MY) COMPUTR SFTWR-DSKTOP 3.61B 2.31B SHRS RIGS BUSISS: MGMT owns X-DIV SC MY.G. SRVICS BRHD IS GGD I TH BUSISSS OF D PYMT, S W S OI IFORMTIO SRVICS SUCH S PRIC = DVOPMT D IMPMTTIO OF TH CTROIC GOVRMT TRFFIC SUMMOS CHCKIG D CTROIC BKRUPTCY OR 10 X PS SRVICS PROJCT D TH PROVISIO OF OTHR RTD SRVICS IQUIDTIO STTUS SRCHS. GS R O-ITRT BSD FOR TH CTROIC GOVRMT SRVICS PROJCT, S W S SRVICS, SUCH S SOFTWR D TRPRIS SOUTIOS, SYSTM IVSTMT HODIG. TH COMPY'S BUSISSS R CTGORIZD DVOPMT D MITC, S W S SRVICS RDRD T ITO TWO STRTGIC BUSISS DIVISIOS: GOVRMT TO CITIZ TH -SRVICS CTRS. ITS OTHR SRVICS ICUD RW (G2C) D GOVRMT/TRPRIS SOUTIO (GS). G2C SRVICS OF RW OF FORIG WORKRS PRMIT, ZKT PYMTS, D 0.46 RFRS TO SRVICS SUCH S DRIVIG THORY TST BOOKIGS, KU UMPUR CITY H SSSSMT D SUMMOS PYMT ISSUC D RW OF ICSS, CTROIC BI PYMT STIMT 2019 STIMT 0.40 PS MYR (JU.) % % U W K Y CF/SHR MYR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI MYR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP MYR 8.87BI. SS MYR MI MYSI PS RTIG 98 IC 2000 MYR2.46(OH -11%) Up 68.48% Since ddition RIGS GROWTH RT SS GR RT +77%(13 STBIITY) +57% %(15 STBIITY) +48% COMPOSIT RTIG IVT T/O x 85 0KPCOMP DBT % %: 21%: 21% 0%: 0%: 1% TX RT : : BCKOG X '17 BK.V R&D DIV 0.02(0.7%) DIV GR RT+53% (13) BT 1.51(8) PH 0.12(0.07) C- Global Focus M MYR % 0.18 PRIC SC /1 2/ /2 VOUM 80 M 50 M 30 M 20 M PS (MYR) % CHG SS(MI MYR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) a% % 47.8% +27.6% /607M DC a% % 44.8% +29.6% /625M MR a% % 47.0% +31.6% /537M JU % 43.4% +31.8% /696M SP % 47.3% +29.2% /736M DC % 48.9% +29.3% % 50.9% +30.2% /766M MR /564M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: Computer Sftwr-Desktop % 46.9% +34.7% /545M SP % % 47.7% +35.1% /625M DC % % 47.2% +37.1% /597M MR % % 58.3% +42.3% /573M JU % 51.5% +42.3% /583M SP % % 53.7% +41.2% /650M DC % % 54.3% +44.2% /696M MR % % 56.8% +42.2% /694M JU 17 FOR IFORMTIO, C OR VISIT % % 53.8% +41.1% '13-18 P..'S OW OW HI ST 175/677M SP 17 DC 17 13X 36X 60X MR 18 TM DTGRPHS 2/2/2018

91 TIW ĐĐƚŽŶ dğđśŷžůžőlj dt &K ϮϬ dž Source: Corporate Website ccton Technology (CC.TW) is a leading provider of telecom and enterprise networking devices. Strong demand for high-end switches from cloud datacenters will help drive the Company s growth. ccton Technology d /t džđś dtϭϭϭϯϯϰϱϭϭϲ нθθϲ ϯϱ ϳϳϬϮϳϬ W^ ZĂŶŬ ϵθ ĂĐĐƚŽŶ ĐŽŵ ŽŵƉƵƚĞƌͲĞƚǁŽƌŬŝŶŐ Growth Drivers ccton is expected to be a key beneficiary of strong demand for 400G switches, which will hit mass production in H2 2018, and adoption of coherent switch technology in remote data center interconnect. ^ŚĂƌĞƐ ϱϰϰd &ůžăƚ ϰϲθd W^ ƵĞ ϯ ϯϭ ϮϬϭϳĞ K, Ͳϭй D'Dd ŽǁŶƐ dk d,k>k'z KZWKZ d/k /^ WZ/ /W >>z ' ' / d, Z ^ Z, s >KWD d D h& dhz /^dz/ hd/k K& d, Z d ^t/d, ^ t/z > ^^ >K > Z dtkz< t> Ϳ WZK h d^ ZK ^^ WZK h d^ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ͲϬ ϰϲ Ϭ ϳϮ ϭ ϭϵ ϭ ϵϱ ϭ ϲϲ ϭ ϲϱ ϭ Ϭϲ ϭ Ϯϭ Ϯ ϭϵ ϰ ϯϭ ϭϵйÿ ϯ ϲϯ ϲϱйÿ W^ dt ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z dt ͲϬ ϭϵ ϭ Ϭϲ Ϭ ϵϭ Ϯ Ϯϰ Ϯ ϲϵ ϯ Ϯϱ ϭ Ϯϴ ϭ ϴϳ ϯ ϰϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϲй WZ d y D Z'/ й Ͳϭй Ϯй ϰй ϱй ϰй ϰй ϯй ϯй ϲй ϮϬϭϰͲϭϲ ϰϵй Ϯϯ ^ƚăďŝůŝƚljͿ Ͳϭй Z dhz K Yh/dz й Ͳϰй ϳй ϭϭй ϭϰй ϭϯй ϭϯй ϴй ϵй ϭϱй ϮϬϭϮͲϭϲ ϵй ϯϳ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' Ͳϭϴй ϮϮй Ͳϭϭй ϯϰй ϭϯй ϰй Ͳϭϲй ϭй ϴй KDW Z d/' ^ > ^ D/>Ϳ dt ϭϲ< ϭϵ< ϭϳ< Ϯϯ< Ϯϲ< Ϯϳ< Ϯϯ< Ϯϯ< Ϯϱ< /s d K ϱ ϳdž ϱϵ t <>z ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď Ϭϴ d й ϮϬϭϯͲϭϱ ϯ ϭй Ϭй Ϭй d 'Z W, Z d/' ϳϭ ϲϳ ϳϭ ϳϲ ϳϲ ϳϱ ϳϱ ϳϴ ϴϭ d y Z d ϮϬϭϯͲϭϱ ϮϬй ϵй Ϯϭй s' />z sk> ϬϬϬͿ ϲ ϯϭϯ ϲ ϭϰϭ ϲ ϭϭϰ ϲ ϱϯϲ ϲ ϱθϭ ϲ ϮϬϴ ϲ ϬϮϮ ϱ ϵϲϳ ϲ ϮϬϮ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd ϭ Ϭ ϭ Ϯ ϭ ϯ ϭ ϱ ϭ ϳ ϭ ϱ ϭ ϴ Ϯ Ϯ Ϯ ϭ Z Θ ϱ ϱϭй < s > ϯ ϱϲdž Ζϭϱ hd /^d Z d/' Ͳϯ ͲϮ ϳ Ϯϰ ϯϲ Ϯϲ ϯϯ ϯϰ ϯϯ /s dt ϭ ϵϲ ϯ ϲйͿ /s 'Z ZdͲϱй ϮϮͿ Z > d/s ^dz 'd, ϴϱ ϴϮ ϴϴ ϵϯ ϵϰ ϵϯ ϵϯ ϵϭ ϵϭ d ϭ ϬϮ ϴ ϬϬͿ >W, Ϭ ϭϱ Ϭ ϬϲͿ 'ZKhW Z < ϲϱ ϲϲ ϱϭ ϰϵ ϰϯ ϱϰ ϱϭ ϰθ ϯϯ ϮϬϭϱ DW>Kz ^ ϰ ϰϵϱ ͲϳйͿ >K' &ŝdžğěͿ WZ/ ϭϱϭ Minimal overhead supply ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ Break out from cup w/ high handle on 1.6x the average daily volume stimate increased ϵϭ ϴϬ ϳϬ ϲϭ ϱθ ϱϭ dt нϯ ϱϭ ϱϭ нϰ ϰϲй ϰϲ Strong PS rank ϰϯ Rising U/D vol and /D rating ϯθ Improving IG rank Improving CF/share, P/T margin, RO ϵϭ н ϯϰ ϯϭ Ϯϲ Ϯϰ ϮϮ Company Overview The Company supplies a diverse spectrum of solutions to advanced networking, IT, and telecom operators, such as switches, carrier access, W products, broadband, and gateway products, among others sales by segment: switches, 62%; carrier access, 20%; W (business wireless P/ router), 7%; broadband and gateway, 2%; other, 9% revenue by geography: U.S., 58%; sia, 21%; urope, 19%; Taiwan and rest of world, 2%. O eil Methodology The stock is currently trading 12% above the pivot of its most recent base. It has strong support at its 10-WM at TWD Given better-than-expected October sales, the stock is likely to find support near its 10-WM. It has a strong technical profile with an Up/Down volume ratio of 1.6 and an /D Rating of B-. The stock has an RS Rating of 92, and the RS line is in a steady uptrend. In Q3 2017, ccton reported sales of TWD 8.87B, up 18.3% y/y, led by growth of 50G/100G switches, below consensus estimates of TWD 9.4B. The Company reported higher-than-expected October sales of TWD 2.9B, up 34% y/y. Gross margin contracted 30bps y/y to 19.3%. The Company reported PS of TWD 1.2, up 34.8% y/y, still below consensus estimates of TWD 1.4. DŬƚ ĂƉ dt ϯϭ ϴϭ ^ĂůĞƐ dt Ϯϴ Ϭϲ,ƐŝŶĐŚƵ d /t ϭϵ ϭϳ ϭϱ 40-Week M Rising R/S line with strong R/S and /D rating ϭϯ ϭϯ ϭϭ ϭϭ ϵ 10-Week M ϴ ϳ ϲ PS and revenue growth accelerating ϰ ϴ >/ sk>hd Increasing sponsorship ϭϯϭd ϭϭϭd ϵϭd ϳϬD нϭϭϭй ϱϭd ϯϭ ϳD ϯϭd ϭϭ&/ / >^ ĞĐ ϭϭ DĂƌ ϭϯ ϱϱ Ϭ ϱϵ Ϭ ϯϵ W^ dt Ϳ ϰй нϭϰϲй нϯϵй W^ й, ' ϵ^ > ^ D/> dt Ϳ ϲ ϵϯθ Ϯ ϲ ϰϱϭ Ϭ :ƵŶ ϭϯ Ϭ Ϯϰ ^ĞƉ ϭϯ Ϭ ϲθ ĞĐ ϭϯ Ϭ ϯϰ DĂƌ ϭϯ Ϭ ϭϯ :ƵŶ ϭϯ Ϭ ϯϳ ^ĞƉ ϭϯ Ϭ Ϯϲ ĞĐ ϭϯ Ϭ ϯϭ DĂƌ ϭϰ Ϭ ϯϲ :ƵŶ ϭϰ Ϭ Ϯϵ ^ĞƉ ϭϰ Ϭ ϭϯ ĞĐ ϭϰ Ϭ ϰϰ DĂƌ ϭϱ Ϭ Ϯϭ :ƵŶ ϭϱ Ϭ ϰϯ ^ĞƉ ϭϱ Ϭ ϳϭ ĞĐ ϭϱ Ϭ ϴϱ DĂƌ ϭϲ Ϭ ϳϱ :ƵŶ ϭϲ Ϭ ϴϵ ^ĞƉ ϭϲ Ϭ ϴϵ ĞĐ ϭϲ ϭ ϮϮĞ DĂƌ ϭϳ ϭ ϭϯğ Ϭй ϲ ϳϴϯ ϵ нϯϰй ϳ ϭϯϯ Ϯ ͲϰϮй ϲ ϲϱϵ ϭ Ͳϲϳй ϰ ϴϰϰ ϴ нϱϰй ϲ ϭϯϰ Ϯ ͲϲϮй ϱ ϲϰϯ Ϭ ͲϭϮй ϲ Ϭϭϲ Ϭ нϭϳϳй ϱ Ϯϱϭ ϱ ͲϮϮй ϱ ϵϱϯ Ϯ Ͳϱϰй ϱ ϯϰϳ ϭ нϰϳй ϲ Ϯϵϲ Ϭ ͲϰϮй ϰ ϵϰϳ Ϯ нϰϱй ϲ ϭϯϭ ϲ нϰϵϯй ϲ ϱϰϯ ϳ нϵϯй ϳ ϭϭθ ϰ нϯϱϳй ϱ ϵϯϳ ϴ нϭϭϯй ϳ ϰϯϭ ϱ нϯϱй ϳ ϱϵϭ ϯ нϰϰйğ ϴ Ϯϭϳ ϬĞ нϱϭйğ ϳ ϲϲϭ ϬĞ Ϭй нϱй нϭϳй ^ > ^ й, ' нθй ͲϮй Ͳϰй ͲϮϱй ͲϭϬй ͲϮϭй ͲϭϬй нθй Ͳϯй Ͳϱй нϱй Ͳϲй нϯй нϯϯй нϭϯй нϳ ϭй нϯϭй нϭϯ ϭй нϯϭй нϭϲй нϭϱйğ нϯϵйğ ϲϵ ϴϵD ϳϯ ϴϰD ϭϭϳ ϵϵd W^ й ^hzwz/^ ϮϮ Ϯϰ Ϯϰ &h ^ ϭθ^, Z ^, > z &h ^ ϮϮD ϮϱD ϯϰ ϯϲd ϯϱ ϯϲd Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϯϰ ϯθd ϯϯ ϯϰd ϰϭ ϰϭd ϰϭ ϰϭd ϰϰ ϰϭd ϰϱ ϰϭd ϰϯ ϰϱd ϰϯ ϰϳd ϯθ ϰθd ϯϵ ϰϵd ϯϲ ϰϵd ϯϳ ϱϭd W ϭϲ ϮϬϭϳ Ɛƚ ϭϰ Ϭ ϱͳljƌ,ŝőś ϭθ Ϭ ϱͳljƌ >Žǁ ϳ Ϭ ǀƐ /ŶĚ ǀŐ ϭϭϲ ϭϭϯd ϭϭθ ϭϭϭd ĐĐƚŽŶ dğđśŷžůžőlj dtͿ tğğŭůlj ĂƐ ŽĨ tğě &ĞďƌƵĂƌLJ Ϭϴ ϮϬϭϳ &ĞďƌƵĂƌLJ Ϭϴ ϮϬϭϳ More than five Zs will be upgrading their network throughput to 100G, which would ramp up the Company s 100G switches. ccton s subsidiary, dgecore, developed 100G open network modular switches through its open compute project, which created a new trend of open source network operating systems. ccton became the first supplier of 10G, 40G, and 100G switches, certified by Facebook s open compute project (OCP). With several hardware models undergoing accreditation, ccton is poised to become a major beneficiary as an OCP hardware vendor. The CWDM8 multi-source agreement group was formed to define specifications for 400G singlemode optics and to address industry needs by developing technologies to create a competitive supply chain. ooking Forward Consensus estimates have the Company s PS growing 41% and 21%, y/y, in 2017 and 2018, respectively. Growth will be driven by growing demand for high-end switches. (100G/400G). The next catalyst is the Company s Q earnings release on February 13, ocal Code: T2345 Bloomberg Symbol: 2345:TT ISI: TW

92 ccton Technology TIW CCTO TCHOOGY (CC.TW) TI COMPUTR-TWORKIG M M SHRS RIGS BUSISS: MGMT owns X-DIV SC CCTO TCHOOGY CORPORTIO IS PRICIPY GGD I TH CRRIR-CSS CCSS TWORK PRODUCTS, TRPRIS-GRD 802. PRIC = RSRCH, DVOPMT, MUFCTUR D DISTRIBUTIO OF 11 DU-BD MUTI-RDIO WIRSS FIDITY (WI-FI) CCSS 10 X PS THRT SWITCHS, WIRSS OC R TWORK (W) POITS, WI-FI PHOS, CRRIR-GRD WIRSS OUTDOOR PRODUCTS D BRODBD CCSS PRODUCTS. TH COMPY PROVIDS BRIDGS, VOIC OVR ITRT PROTOCO (VOIP) GTWYS, WI-FI THRT SWITCHS, HIGH SPD DT CTR SWITCHS, MODUS D ITGRTD SRVIC GTWYS, MOG OTHRS. IT MUTIYR SWITCHS, POWR OVR THRT SWITCHS, CTIV PRIMRIY DISTRIBUTS ITS PRODUCTS TO OVRSS MRKTS, SUCH THRT MOBI BCKHU GTWYS, WIRSS SWITCHS, S ORTH MRIC, UROP D OTHRS U W K Y PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP TWD 63.40BI. SS TWD34.69 BI TIW PS RTIG 98 TWD114.50(OH -7%) Up 95.73% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(14 STBIITY) +17% %(38 STBIITY) +5% COMPOSIT RTIG IVT T/O PRIC SC x DBT % %: 0%: 0% 9%: 21%: 24% TX RT : : BCKOG X '16 BK.V R&D 5% 3.1(2.7%) DIV GR RT+7% (35) DIV BT 1.22(6) PH 0.23(0.09) 160 0TIWGHT % Global Focus M TWD B VOUM 70 M 40 M 20 M SP Q -58% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 2.6% +7.8% /40540 DC % % 3.6% +9.2% /40040 MR % % 2.6% +9.2% /44541 JU % % 1.2% +8.1% % % 3.7% +8.8% /46589 SP 14 36/48039 DC % % 2.2% +7.5% % % 3.7% +8.9% /48567 MR 15 35/48878 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: Computer-etworking % % 5.8% +12.7% /49674 SP % % 6.3% +14.8% /88836 DC % % 6.7% +18.0% /83787 MR % % 6.4% +22.6% /113M JU % % 6.3% +22.4% /127M SP % % 6.3% +22.2% /122M DC % % 7.6% +24.1% /131M MR % % 7.2% +28.5% /138M JU 17 FOR IFORMTIO, C OR VISIT % % 7.4% +28.5% 4M DC Q % '13-18 P..'S OW OW HI ST 197/126M SP 17 7M DC 17 6X 23X 20X MR 18 TM DTGRPHS 2/2/2018

93 IDI săŭƌăŷőğğ s<^ / W^ Ϯϱ dž ϭϯ ϬϬ ϭϭ ϰϭ ϵ ϲϭ ϴ ϴϬ ϴ ϮϬ ϳ ϲϭ ϲ ϴϬ ϲ ϬϬ ϱ ϮϬ ϰ ϴϬ ϰ ϰϭ Source: Corporate Website Vakrangee d/k > / / džđś / Ϭϱϭ ϬϭϬϮϭ нϵϭ ϮϮ ϮϴϱϬ ϰϭϯθ W^ ZĂŶŬ ϵϲ ŽŵƉƵƚĞƌͲdĞĐŚ ^ĞƌǀŝĐĞƐ ǀĂŬƌĂŶŐĞĞƐŽŌǁĂƌĞƐ ĐŽŵ y /s ϵ ϮϮ ϮϬϭϲ DŬƚ ĂƉ /Zϭϭϱ ϴϵ ^ĂůĞƐ /Zϯϰ Ϭϰ DƵŵďĂŝ / / ^ŚĂƌĞƐ ϱϯϵd &ůžăƚ ϮϳϱD D'Dd ŽǁŶƐ s <Z ' ^K&dt Z ^ >/D/d s <Z ' >/D/d /^ / / Ͳ ^ d,k>k'z KDW z d, KDW zζ^ h^/ ^^ ^ 'D d^ / >h Ͳ 'Ks Z WZK: d^ s <Z ' < Z h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϭ ϯϭ Ϭ ϬϬ Ϭ ϱϱ ϭ Ϭϳ ϭ ϰϯ Ϯ Ϭϴ ϯ ϰθ ϲ ϯϵ ϳ ϲϯ W^ /Z ^, &>Kt ^,Z /Z Ϯ ϱϳ ϭ Ϭϵ ϭ ϲϵ Ϯ ϰϳ ϯ ϯϳ ϱ Ϯϭ ϳ ϯϯ ϭϭ ϭϱ ϭϭ ϳϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϯϯй Ϯй ϳй ϴй ϴй ϵй ϭϰй ϭθй ϭϵй ϮϬϭϰͲϭϲ ϱϭй ϵ ^ƚăďŝůŝƚljͿ Ϯϴй Z dhz K Yh/dz й ϮϮй Ϭй ϴй ϭϱй ϭθй Ϯϯй Ϯϳй Ϯϵй ϮϬϭϮͲϭϲ ϱϰй ϴ ^ƚăďŝůŝƚljͿ Ϯϳй ^ > ^ й, ' ϵϯй ϯϭй ϰϱй ϭϭθй ϱϯй ϭϰй Ϯϲй ϰϯй ϭϱй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z Ϯ Ϯϯϵ Ϯ ϵϰϯ ϰ Ϯϳϱ ϴ ϴϵϳ ϭϰ< ϭϱ< ϮϬ< Ϯϴ< ϯϯ< /s d K ϲ ϵdž ϲϲ t <>z :Ƶů ϮϮ :Ƶů Ϯϵ ƵŐ Ϭϱ ƵŐ ϭϯ ƵŐ ϭϵ ƵŐ Ϯϲ ^ĞƉ ϬϮ ^ĞƉ Ϭϵ ^ĞƉ ϭϰ d й ϮϬϭϰͲϭϲ ϭϭй ϯ ϭй Ϭ ϴϮй d 'Z W, Z d/' ϲϱ ϱϲ ϱϲ ϱϳ ϲϭ ϲϭ ϲϯ ϲϳ ϲϵ d y Z d ϮϬϭϰͲϭϲ ϯθй ϯϰй ϯϱй s' />z sk> ϬϬϬͿ Ϯ ϭϯϭ ϭ ϵϰϵ ϭ ϴϰϴ ϭ ϱϵϱ ϭ ϰϱϵ ϭ ϮϳϬ ϭ ϭϰϯ ϭ Ϭϯϳ ϭ Ϭϱϵ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϲ ϭ ϵ ϭ ϵ ϭ ϰ ϭ ϳ ϭ ϵ ϭ ϯ ϭ ϭ ϭ ϭ Z Θ < s > ϳ ϮϮdž Ζϭϲ hd /^d Z d/' ϱϯ ϱϯ ϱϯ ϰθ ϰϱ ϰϲ ϯϵ ϰϰ ϱϯ /s /Z ϭ Ϯϱ Ϭ ϲйͿ /s 'Z Zdнϯϭй ϯθͿ Z > d/s ^dz 'd, ϲϰ ϱϰ ϱϲ ϱϵ ϲϱ ϲϯ ϲϰ ϳϰ ϳϵ d Ϭ ϴϰ ϱϰ ϬϬͿ >W, Ϭ ϭϰ ͲϬ ϬϳͿ 'ZKhW Z < ϵθ ϭϭϯ ϭϭϲ ϭϭθ ϭϭϱ ϭϭθ ϭϭϲ ϭϭϵ ϭϭϵ ϮϬϭϲ DW>Kz ^ ϭ ϬϮϭ ϬйͿ >K' &ŝdžğěͿ Breaks out of cup with handle on 2x the average daily volume ϮϲϬ ϮϰϬ ϮϮϬ Ϯϭϵ ϬϬ ϭϳϭ ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ High up/down volume with improving R/S and /D ratings ϳϵ 40-Week M 10-Week M Growth Drivers The key growth driver is the Indian government s massive push toward financial inclusion through the Pradhan Mantri Jan Dhan Yojana (PMJDY). So far, a total of 308M accounts have been opened with IR 715B in deposits. India is still largely under-banked, with only 35.2% of the population having bank accounts. There are only 11.4 bank branches per 100k population in India, of which only 30% are located in rural areas. ϵϭ ϴϬ ϳϬ Ϯ ϰϭ O eil Methodology The stock gapped up on better-than-expected Q3 FY 2018 results and remains extended from a buy point. The stock is under accumulation: /D Rating of +, RS Rating of 96, and an RS line at all-time highs. Revenue and PS growth is accelerating over the trailing four quarters, with an PS Rank of 95. The Company reported Q3 FY 2018 net revenue of IR 18.0B (+84% y/y), beating consensus estimates of IR 17.6B. PS increased 86% y/y to IR нϱ ϵϱй ϭϭϭ Strong PS profile ϯ ϲϭ Ϯ ϴϬ Company Overview The Company s retail touch points are called Kendra (outlet) and act as one-stop shops for various services and products. The Company is India s largest e-governance player functioning as a systems integrator. The Kendra, currently in 17 states in India, run on an asset-light franchise model, requiring low capex and working capital. In Q3 FY 2018, revenue from Kendras grew 168% y/y to IR 16.8B, 96% of total revenue. /Z нϭϯ ϯϭ ϭϵϭ Good growth rates ϰ ϬϬ ϯ ϮϬ Vakrangee (VKS.I) focuses on building India s largest network of last-mile retail outlets to deliver real-time banking, insurance, and other services. The Company continues to expand by opening more outlets across India. WZ/ ϯϭϭ ϲϭ Ϯ ϬϬ ϭ ϴϰ ϱϭ ϰϲ ϭ ϲθ Rising R/S line with good /D rating Increasing cash flow/share, pretax margins and RO ϭ ϱϯ ϭ ϯϲ ϰϯ ϯθ ϯϰ ϭ ϮϬ ϯϭ ϭ Ϭϰ Ϭ ϵϲ Ϭ ϴϴ Ϯϲ Ϯϰ ϮϮ Ϭ ϳϲ ϭϵ Ϭ ϲθ ϭϳ Ϭ ϲϭ ϭϱ Ϭ ϱϯ Ϭ ϰθ Ϭ ϰϰ ϭϯ ϭϯ ϭϭ Solid PS and revenue growth >K' sk>hd ϱd ϯ ϰd ϭd нϭϵй ϰϭϭ< ϭϭ :ƵŶ ϭϭ &/ / >^ Ϭϳ W^ /ZͿ ^ĞƉ ϭϭ W^ й, ' ϱ^ > ^ D/> /ZͿ ^ > ^ й, ' ĞĐ ϭϭ DĂƌ ϭϯ ϭ ϰϯ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϭϯ Ϯ Ϭϴ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϭϰ ϯ ϰθ нϯϯй нϰϲй нϲϳй ϭϯ ϱϯϭ ϴ нϱϯй ϭϱ ϰϳϭ ϳ нϭϰй ϭϵ ϱϭϵ Ϭ нϯϲй :ƵŶ ϭϰ ϭ ϱϭ ϲ ϴϭϮ ϰ ^ĞƉ ϭϰ ϭ ϱϵ ϲ ϵθϯ ϴ ĞĐ ϭϰ ϭ ϳϳ ϳ ϬϮϭ ϵ DĂƌ ϭϱ ϭ ϱϭ ϲ ϵθϳ ϳ :ƵŶ ϭϱ ϭ ϳϮ ^ĞƉ ϭϱ ϭ ϴϲ ĞĐ ϭϱ ϭ ϵϰ DĂƌ ϭϲ Ϯ ϭϭ :ƵŶ ϭϲ Ϯ ϯϭ нϭϰй нϭϳй нϭϭй нϯϵй нϯϰй ϳ Ϭϰϯ Ϭ нϯй ϳ ϴϳϲ Ϯ нϭϯй ϴ ϭθθ ϳ нϭϳй ϴ ϳϵϵ ϲ нϯϲй ϵ ϭϳϱ ϰ нϯϭй W^ й ^hzwz/^ ^ĞƉ ϭϲ W Ϯϱ Ɛƚ ϱͳljƌ,ŝőś ϯϲ ϱͳljƌ >Žǁ ϭϭ ǀƐ /ŶĚ ǀŐ ϭ ϱdž Ϯ &h ^ ϭθ ϱϲϯ ^, Z ^, > z &h ^ Π ϮϬϭϲ t/>>/ D KΖ /> н K / ϰ ϲ ϲ ϵ ϵ ϭϰ ϮϮ Ϯϴ ϯϭ ϯϭ ϯϯ ϯθ ϰϳ ϰϭ ϭϵϰ ϭϯϯ Ϯ Ϯϲϳ ϲϵϯ Ϯ ϯϯϯ ϴϭϮ ϲ ϭϭϲ ϱθθ ϲ ϲϰϯ ϰϳθ ϭϭd ϭϯd ϭϯd ϭϰd ϮϰD ϮϴD ϮϴD ϯϰd ϭϵd săŭƌăŷőğğ s<^ /Ϳ tğğŭůlj ĂƐ ŽĨ tğě ^ĞƉƚĞŵďĞƌ ϭϰ ϮϬϭϲ ^ĞƉƚĞŵďĞƌ ϭϰ ϮϬϭϲ The number of Vakrangee outlets increased 9.5% q/q to 44,286 and is on track to reach 75,000 by mazon services are now facilitated across ~10.4K outlets, versus earlier guidance of 10K by March In ugust, Vakrangee facilitated the pre-booking of Reliance Jio phones. It targets a sale of 10M handsets through its outlets. During this quarter, Vakrangee tied up with etmeds to offer medicines and other health products. Other tieups, such as DMI finance for loan generation and Vasco llianz for visa services, are still in the pilot phase and would contribute incrementally to revenues once fully implemented. ooking Forward The Indian ecommerce market is expected to increase from $7B to $200B (CGR of 36%) in the next 10 years. With a footprint across India, Vakrangee has a first-mover advantage to leverage this huge opportunity from the IR 1.1T Digital India mission. ext Catalyst: The Company s Q4 FY 2018 results on May ocal Code: I:VKRG Bloomberg Symbol: VKI:I ISI: I051B01021

94 Vakrangee IDI VKRG (VKS.I) S COMPUTR-TCH SRVICS 1.06B M SHRS RIGS BUSISS: MGMT owns X-DIV SC VKRG IMITD IS TCHOOGY COMPY. TH COMPY'S SRVICS, WHICH B CITIZS TO ISSU FORM GRIVC TO PRIC = SGMTS ICUD -GOVRC PROJCTS D VKRG KDR. TH GOVRMT, D ROMTS, ICUDIG D RCORD 10 X PS TH -GOVRC PROJCTS SGMT OFFRS COCTIO DIGITIZTIO, CTOR ROS; PYMT OF UTIITY BIS, SRVICS, ICUDIG PYMT OF CTRICITY, TPHO D TXS, VIS, D RIWY TICKTS, CRTIFICTS, H MOBIS; RCRUITMT PPICTIO PROCSSIG, ICUDIG TICKTS. TH VKRG KDR SGMT ICUDS BKIG D PROCSSIG OF PPICTIOS FOR RCRUITMT OF WORKFORC FOR ISURC, ICUDIG WHIT B UTOMTD TR MCHIS GOVRMT-RTD SRVICS; ISSUC OF CRTIFICTS, D PSIO TRSCTIOS, D -COMMRC SRVICS. ITS ICUDIG OI RGISTRTIO D ISSUC OF BIRTH, DTH, SUBSIDIRIS ICUD VKRG FISRV IMITD D DOMICI D D RCORD CRTIFICTS; GRIVC MGMT VKRG -SOUTIOS IC STIMT 2019 STIMT % % PS IR (MR.) U W K Y CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR BI. SS IR58.00 BI IDI PS RTIG 95IR262.65(OH -49%) Up % Since ddition RIGS GROWTH RT SS GR RT +32% (5 STBIITY) +28% +46%(11 STBIITY) +28% COMPOSIT RTIG IVT T/O PRIC SC 0IBOM500 R M O V D x DBT % %: 0.77%: 0% 34%: 35%: 36% TX RT : : BCKOG X '17 BK.V R&D 1(0.3%) DIV GR RT+52% (59) DIV BT 0.83(3) PH 0.19(0.08) Global Focus M IR D /1 24 VOUM 20 M 9M 4M 800 K PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 9.0% 11.2% 11.5% 12.7% 10.9% +32.4% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /12233 DC /13287 MR /20956 JU /26368 SP /26024 DC % % 12.3% /27245 MR 15 31/47424 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: Computer-Tech Services % % 12.2% +30.3% /55964 SP % % 12.6% /56822 DC % % 12.6% +28.9% /72481 MR % % 13.2% /43728 JU % % 13.2% +29.1% /63609 SP % % 13.4% /80091 DC % % 13.2% +29.1% /97938 MR % % 12.9% % % 12.2% +31.6% % % 13.7% '13-18 P..'S OW OW HI ST /131M JU 17 FOR IFORMTIO, C OR VISIT /155M SP /146M DC 17 12X 50X 41X MR 18 TM DTGRPHS 2/2/2018

95 MYSI Time Dotcom Source: Corporate Website Time Dotcom (TIDO.MY) is a fixed-line telecommunications provider that connects businesses and homes across PC. The Company continues to grow in international markets through strategic acquisitions. Company Overview The Company offers a full suite of domestic and international connectivity and data center solutions to the wholesale, enterprise, SM, and consumer markets through its two fastestgrowing subsidiaries: the Global Transit Group of Companies (GT) and IMS Group of Companies (IMS). GT has a presence in the U.S., Singapore, Hong Kong, and Japan. It also has links in international submarine cable systems such as UITY, FSTR, and sia-pacific Gateway, through which it connects sia globally. IMS is a leading provider of premium carrier-neutral data center and managed services in Southeast sia. It also provides data recovery and cloud computing services. O eil Methodology The stock is currently trading 9% below the pivot of its most recent base. It is trading below its 50- and 200-DM. The next support levels are at 8.74 and 8.30, and the stock is expected to show correction if it breaks these levels. The stock has a strong technical profile, with an Up/Down volume ratio of 1.7, an /D Rating of B-, and an RS Rating of 60. In Q3 2017, the Company reported sales of MYR 203M, up 4.2% y/y, mainly due to poor performance by its voice business and an absence of IRU sales. BITD margin fell 590bps y/y to 33.8%, led by forex losses and poor top-line growth. Data and data center revenue grew 7.5% and 3.7%, y/y, to MYR 156.4M and MYR 27M, respectively. Voice revenue fell 16.6% y/y to MYR 18.4M. The Company reported PS of MYR 0.049, down 49.2% y/y due to higher taxes (MYR 14.2M versus MYR 2.4M a year ago). Time Dotcom TIDO.MY Telecom Svcs-Integrated BURS MYSI xch Malaysia, Ringgits MktCap MYR2.45 Bil Sales MYR548 Mil Shares 573 Mil Price= Selangor Darul hsan, MYSI Inc 1996 MGMT owns Price 10eps PS Rank 95 Vol =8,484,540 Rate = + 436% MYR (OH -1%) TIM DOTCOM BRHD (TIM) IS DT-CTRIC TCOMMUICTIOS D SOUTIOS PROVIDR BSD I MYSI, WITH Scale BUSISS RCH CROSS TH SI-PCIFIC RGIO. TH COMPY IS PRICIPY GGD I IVSTMT HODIG, PROVISIO OF Minimal overhead 1.10 MGMT D MRKTIG/PROMOTIO SRVICS. TIM'S COR BUSISS FOCUSS O PROVIDIG BCKHU D WHOS 11 supply 1.00 BDWIDTH TO OC, RGIO D GOB OPRTORS I MYSI D TH SI-PCIFIC RGIO. TH COMPY DIVRS FIBR 0KPCOMP 10 OPTIC-BSD TCOMMUICTIOS SOUTIOS, ICUDIG PRIVT SD IS D DDICTD ITRT SRVICS TO 0.90 Dec Year nd stimate 2015 stimate 9 PS % % n Cash Flow/Shr MYR arnings Growth Rate Sales Gr Rt n Pretax Margin % % (37 Stability) 22% Breaks out to new highs 0.70 u Return On quity % % (38 Stability) 13% 7 on 4.4x the average a Sales % Change Composite Rating 0.60 l Sales (Mil) $ Inv t/o 40.1 X 90 weekly volume 6 W Datagraph Global DG Rating Debt % % 6% 7% e vg Daily Vol (000) Tax Rate % 0.50 e Up Down Volume Backlog k ccum/dist Rating R and D 1.20 X '13 Bk Val l Global Relative Relative Strength Str Div MYR one Div Gr Rt 4.2 y Global Group Rank Group Rank Beta 1.35(64) lpha 0.10(-0.03) Good growth rates Good PS rank Week M Week M Rising R/S line with best R/S rating PS (MYR) % Change Sales (Mil MYR) % Change Margin fter Tax Return on quity T4Q P ow-high Fund/Shares (000) % % 27.6% +7.9% / % % 24.0% +8.4% / % % 51.9% +9.3% /19M 32.7% /23M 34.2% /29M 52.9% /30M % +36.0% /40M Mar Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 WOD Copyright 2014 William O'eil + Co.,Inc. ll rights reserved wonda@williamoneil.com % +7.7% /41M 1/ % +7.6% /39M % +6.6% /46M % +9.1% /44M % % 27.1% +9.6% /46M 132/ % % 291.1% +29.0% /44M % % 21.4% +26.1% /47M % % 125.1% +28.6% /40M /38M 0.7 Volume 12,000,000 6,000,000 3,000, P s ow 4x ow 4x Hi 32x st. 0.0x s &p 4/9/2014 Growth Drivers Demand for the Company s fiber broadband service (Time Fibre Broadband), which is only available in multidwelling units, remained strong, thanks to its good value proposition and attractive price points. In its Malaysia retail business, with more homes and a niche target market, management believes that it can continue to grow aggressively in The Company is targeting 450,000 premises by the end of 2017, up from more than 300,000, currently. TIM had partially completed the sia-frica-urope 1 Cable System (-1) in June and expects to be fully ready for service by the end of will extend TIM s network reach in urope and open new markets and opportunities for the Company. ooking Forward IRU sales are not expected to feature in Q4 2017, giving poor revenue visibility. nalysts lowered 2018 and 2019 earnings forecasts after poor quarterly results. Consensus estimates have PS growing -46% and 18%, y/y, in 2017 and 2018, respectively. ext catalyst: The Company s Q results on February 26, ocal Code: 5031 Bloomberg Symbol: TDC:MK ISI: MY5031OO009

96 Time Dotcom MYSI TIM DOTCOM KS (TIDO.MY) TCOM SVCS-ITGRTD M M SHRS RIGS BUSISS: MGMT owns SC TIM DOTCOM BRHD IS PRICIPY GGD I IVSTMT TCOMMUICTIO QUIPMT D RTD SRVICS; PROVISIO PRIC = HODIG, D PROVISIO OF MGMT D OF TWORK SRVICS, IFORMTIO SRVICS, SYSTM 10 X PS MRKTIG/PROMOTIO SRVICS. TH COMPY'S SGMT IS TH ITGRTIO SRVICS, D OPRTIO OF DT TWORKS D BUSISS OF TCOMMUICTIOS. TH COMPY, THROUGH ITS TWORK-BSD PPICTIOS FOR CORPORTIOS. ITS SUBSIDIRIS, IS GGD I PROVISIO OF VOIC, DT, VIDO SUBSIDIRIS ICUD IMS DT CTR PT. TD., IMS 4.60 D IMG COMMUICTIO SRVICS THROUGH ITS DOMSTIC D CYBRJY SD. BHD., TH IMS SI GROUP SD. BHD., GOB 4.40 ITRTIO TWORK; IVSTMT HODIG; TH BUSISS OF TRSIT IMITD, GOB TRSIT (HOG KOG) IMITD, TIM 4.20 TCOMMUICTIO SRVICS D TRDIG BDWIDTH CPCITY; DOTCOM ITRTIO SD. BHD., PT TPIR SD. BHD. D 4.00 PROVISIO OF MGMT SRVICS; WHOS OF TT DOTCOM SD. BHD U W K Y PS MYR (DC.) CF/SHR MYR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI MYR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP MYR 5.08BI. SS MYR MI MYSI PS RTIG IC MYR8.74(OH -11%) Up % Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(39 STBIITY) +13% %(55 STBIITY) +15% COMPOSIT RTIG IVT T/O 40.1x DBT % %: 4.9%: 8% 4%: 1%: TX RT : : BCKOG X '16 BK.V R&D 0.2(2.3%) DIV GR RT DIV BT 0.69(2) PH 0.02(0.01) KPCOMP D Global Focus M MYR /9 2 VOUM 2M 1M 400 K 60 K PS (MYR) % CHG SS(MI MYR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 125.1% +28.6% /40689 DC % % 22.3% +28.6% /38408 MR % % 28.3% +14.6% /40094 JU % % 33.2% +15.3% /41926 SP % % 32.0% +7.9% /50688 DC % % 33.0% +8.9% % % 192.6% +20.7% /48935 MR 15 86/45572 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Technology: Telecom Svcs-Integrated % % 34.1% +22.4% /43647 SP % % 20.6% +21.0% /44949 DC % % 21.5% +20.1% /45417 MR % % 113.9% +14.9% /43963 JU % % 28.4% +16.0% /44822 SP % % 51.7% +19.1% /45507 DC % % 24.3% +20.2% % % 17.5% +12.2% / / /56646 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 13.9% +10.9% '13-18 P..'S OW OW HI ST DC 17 2X 19X 22X MR 18 TM DTGRPHS 2/2/2018

97 IDI ŚĂƌĂƚ ůğđƚƌžŷŝđɛ, / W^ ϭϳ dž Ϯϰ ϳϭ ϮϮ ϯϱ ϮϬ ϬϬ ϭϳ ϲϱ ϭϱ Ϯϵ ϭϰ ϭϯ ϭϯ ϵϰ ϭϭ ϭθ ϭϭ ϬϬ ϴ ϴϮ Bharat lectronics d/k > / / džđś / Ϯϲϯ ϬϭϬϮϰ нϵϭ ϴϬ ϮϱϬϯ ϵϯϭϭ W^ ZĂŶŬ ϴϴ ďğůͳŝŷěŝă ĐŽŵ ĞƌŽƐƉĂĐĞ ĞĨĞŶƐĞ DŬƚ ĂƉ /Zϯϵϵ Ϯϲ ^ĂůĞƐ /Zϴϲ ϱϰ ĂŶŐĂůŽƌĞ / / /ŶĐ ϭϵϱϰ ^ŚĂƌĞƐ Ϯ Ϯϯϰ &ůžăƚ ϳϭϱD K, Ͳϰй ϱ ϴϴ ϱ Ϯϵ Up/Down Volume and /D rating numbers improving Solid PS Rank ϰ ϳϭ >K' &ŝdžğěͿ RO improving for 16% in FY2015 to 18% in FY2017 ϯθϭ ϯϰϭ ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ нϱθй ϭϵϭ ϭϳθ ϳϱ ϭϳϭ нϭ ϴϱϬ нϰϰй ϭϱϭ нϯϭй ϭϭϭ ͲϮϰй ͲϮϵй ͲϮϵй ͲϮϵй ϵϭ ϴϬ ϳϬ ϰ ϭϯ ϯ ϱϯ Bharat lectronics td (B) is a major supplier of products and turnkey systems to the Indian Defence Forces. The Company s huge order book of IR 410B entails multi-year revenue visibility. Company Overview B is an aerospace and defense company, a majority of which is owned by the Government of India. Products include command and control systems, weapons systems, tank electronics, avionics, electronic warfare (W), electro optics, naval systems, and radar and communications. In the non-defense sector, B s products include electronic voting machines, tablet PCs, integrated circuits, solar products and systems, and semiconductor devices. O eil Methodology fter delivering better-than-expected Q2 FY 2018 results, the stock broke out of a seven-week cup to an all-time high. The stock s technical ratings have been stable, with an RS Rating of 66, /D Rating of B, and Up/Down Volume ratio of 1.4, signifying strong demand. Over the past three years, B has grown earnings and sales an average of 9% and 18%, y/y, respectively. The Company s consistent earnings growth is reflected its PS Rank of 80. In Q2 FY 2018, B reported 38% y/y growth in revenues and 19% y/y growth in net profit, both ahead of consensus expectations. This was driven by strong order execution and operational efficiency. Growth Drivers India has the third-largest armed forces in the world, with an annual budget of about $38B, of which 40% is used for capital acquisition. 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Make in India stipulates that 30 50% of armament purchase value should be spent on Indian-made components, sub-systems, and products, building an ecosystem of domestic component suppliers, of which B would be a leading provider. The Company is negotiating an order worth IR 70B with the Indian ir Force. Management expects to complete negotiations in the next two to three months. Such an order would boost the Company s existing large orders and help achieve a guided revenue growth of 12 15% going forward. ooking Forward Management expects sales growth of 15% y/y and to win orders of IR 130B 150B in FY Management is also confident that they can achieve BITD margin of at least 17 18% in FY ext Catalyst: The Company s Q3 FY 2018 results expected to be announced on January 31, ocal Code: I:B Bloomberg Symbol: BH:I ISI: I

98 Bharat lectronics IDI BHRT CTROICS (BH.I) S ROSPC/DFS 2.46B M SHRS RIGS BUSISS: MGMT owns X-DIV SC BHRT CTROICS IMITD IS GGD I DSIG, MUFCTUR SOR PHOTOVOTIC SYSTMS. ITS ODFS PRODUCTS ICUD PRIC = D SUPPY OF CTROICS PRODUCTS/SYSTMS FOR TH DFS TURKY SYSTM SOUTIOS; CIVII RDRS; -GOVRC 10 X PS RQUIRMTS, S W S FOR ODFS MRKTS. TH SYSTMS, D HOMD SCURITY. ITS OTHR RG OF PRODUCTS COMPY'S PRICIP PRODUCTS/SRVICS ICUD WPO ICUD CTROIC VOTIG MCHIS, COMMUICTIO QUIPMT, SYSTMS, RDR D FIR COTRO SYSTMS, D COMMUICTIO. RDR WRIG RCIVR D CSIGS. IT OFFRS CTROIC ITS DFS PRODUCTS ICUD DFS COMMUICTIO; RDRS; MUFCTURIG SRVICS I RS OF PRITD CIRCUIT BORD V SYSTMS; COMMD, COTRO, COMMUICTIOS, COMPUTRS, SSMBY D TSTIG; PRCISIO MCHIIG D FBRICTIO; D ITIGC SYSTMS; WPO SYSTMS; TCOM D OPTO CTROICS COMPOTS D SSMBIS, D OFFSTS, BRODCST SYSTMS; CTROIC WRFR; CTRO OPTICS, D MOG OTHRS STIMT 2019 STIMT PS IR (MR.) % % CF/SHR IR RIGS GROWTH RT SS GR RT %(2 STBIITY) +9% PRTX MRGI, % U W K Y RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK %(4 STBIITY) COMPOSIT RTIG IVT T/O FOT MKT CP IR BI. SS IR86.54 BI IDI PS RTIG IC IR151.85(OH -21%) Down 0.58% Since ddition PRIC SC % R M O V D x DBT % %: 0%: 0.22% 21%: 24%: 24% TX RT : : BCKOG X '17 BK.V R&D 0.1% DIV 2.55(1.6%) DIV GR RT+56% (44) BT 1.42(26) PH -0.07(-0.05) IBOM500 Global Focus M IR /1 10/ /10 24 VOUM 40 M 20 M 10 M 5M MR Q -20% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % % % % 14.6% +9% 16.9% +4% 18.2% +18% 17.6% FUD/SHRS (000) /174M DC /184M MR /243M JU /257M SP /294M DC /265M MR /264M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Capital quipment: erospace/defense /253M SP /283M DC /282M MR /291M JU /284M SP /287M DC /355M MR 17 '13-18 P..'S OW OW HI ST /369M JU 17 FOR IFORMTIO, C OR VISIT M JU Q RTUR O QUITY T4Q P OW-HIGH 2M SP 17 DC 17 7X 29X 28X MR 18 TM DTGRPHS 2/2/2018

99 MYSI ^ĐŝĞŶƚĞdž ^d y Dz W^ ϳ dž ϭ ϴϲ ϭ ϳϭ ϭ ϱϳ ϭ ϰϯ ǁǁǁ ƐĐŝĞŶƚĞdž ĐŽŵ ŵlj ŽŶƚĂŝŶĞƌƐ WĂĐŬĂŐŝŶŐ h > Ͳ :h> W^ DzZ ^, &>Kt ^,Z DzZ ϭ ϭϰ WZ d y D Z'/ й Z dhz K Yh/dz й ^ > ^ й, ' ϮϬϬϱ Ϭ ϭϯ ϮϬϬϲ Ϭ ϭϱ ϮϬϬϳ Ϭ ϭθ ϮϬϬϴ Ϭ Ϯϰ ϮϬϬϵ Ϭ ϭϳ ϮϬϭϬ Ϭ Ϯϴ ϮϬϭϭ Ϭ ϯϲ ϮϬϭϮ Ϭ ϯϵ Ϭ Ϯϲ ϳй Ϭ ϯθ ϴй Ϭ ϯϭ ϲй Ϭ Ϯϰ ϵй Ϭ Ϯϰ ϴй Ϭ ϯθ ϭϭй Ϭ ϰθ ϭϯй Ϭ ϱϭ ϭϯй ϭϭй ϰϵй ϭϭй ϭϲй ϭϯй ϱй ϭϱй ϳй ϭϭй ͲϮϮй ϭϱй ϯϲй ϭθй ϭϲй ϭϳй ϭϭй ϱϭθ ϱθϲ ϲϭϯ ϲϱϳ ϱϭϭ ϲϵϱ ϴϬϰ ϴϴϭ ϮϬͲ:ƵŶ ϮϳͲ:ƵŶ ϱϱ ϱϱ ϭϭϭ ϵϵ ϰͳ:ƶů ϱϯ ϭϭϭ ϭϭͳ:ƶů ϱϰ ϭϯϯ ϭθͳ:ƶů ϱϰ ϭϰϯ ϮϱͲ:Ƶů ϱϱ ϭϰϵ ϭͳ ƵŐ ϱϲ ϭϱϲ Ϭ ϴϲ ^ > ^ D/>Ϳ DzZ Ϭ ϳϭ Ϭ ϲϲ d 'Z W, Z d/' s' />z sk> ϬϬϬͿ Ϭ ϲϭ Ϭ ϱϵ Ϭ ϱϰ hw Kt sk>hd Ϭ ϴ Ϭ ϴ Ϭ ϴ Ϭ ϱ Ϭ ϱ Ϭ ϲ Ϭ ϲ hd /^d Z d/' Z > d/s ^dz 'd, ϭϯ ϰϭ ϳϮ ϭϭ ϯθ ϰϲ Ϯ ϯϱ ϯθ ͲϭϬ ϯϳ ϰϯ Ͳϭϳ ϯϲ ϰϯ ͲϮϱ ϯϰ ϱϭ Ͳϯϲ ϯϰ ϱϭ Ϭ ϰϵ DŬƚ ĂƉ DzZϭ ϰϰ ^ĂůĞƐ DzZϭ ϱϱ ^ŚĂŚ ůăŵ D > z^/ /ŶĐ ϭϵθϲ 'ZKhW Z < ϮϬϭϰ ƐƟŵĂƚĞ ϮϬϭϯ Ϭ ϱϭ K, Ϭй Strong estimates >K' &ŝdžğěͿ o overhead supply ϮϬϭϱ ƐƟŵĂƚĞ Ϭ ϲϲ Ϯϵйź Ϭ ϳϰ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϯй ϮϬϭϮͲϭϰ 6WDOW\ ϭϵй ϮϬϭϬͲϭϰ 6WDOW\ ϰϭй KDW Z d/' Breaks out of consolidation on 2.7x the average weekly volume Ϭ ϳϲ ϭϱйź ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^DZ Z d/' ϱϯ d ϱϰ ϭ Ϭϰ ϲϭ ϬϬͿ Ϭ ϵϱй ϭθй Ϯϳй ϮϮй Good growth rates < s > Ϯ Ϭϱdž Ζϭϯ /s 'Z Zdнϭϵй ϮϬͿ ϴ ϳ DzZ ϲ Ϯϱ нϭ ϮϱϬ нϰ ϭϳй ϰ Ϯ ϯ ϴ >W, Ϭ Ϭϯ ͲϬ ϬϯͿ ϯ ϰ ϯ 40-Week M ϱϯ Ϯ Good PS rank Ϭ Ϯϳ 10-Week M High up/down volume Ϭ Ϯϰ Ϯ ϲ Ϯ ϰ Ϯ Ϯ ϭ ϵ ϭ ϳ R/S line near highs Ϭ Ϯϭ ϭ ϱ ϭ ϯ ϭ Ϯ ϭ ϭ Ϭ ϭϵ Ϭ ϭϳ Ϭ ϭϲ Scientex Berhad (STX.MY) is a leading property developer and industrial packaging manufacturer in Malaysia. The Company continues to benefit from the new plant expansion and land acquisitions. ϵ ϱ ϰ ϲ Ϭ ϰϯ Ϭ ϯϳ Ϭ ϯϰ Ϭ ϯϭ ϭϭ ϲ Ϯ ϭй ϭϳй WZ/ ϭϯ ϭϯ ϭϭ ϭ ϮϮϵ /s d K ϴ ϵdž ϳϬ ϮϬϭϭͲϭϯ ϴͲ ƵŐ ϭϯͳ ƵŐ d й ϮϬϭϭͲϭϯ ϲϯ ϲϯ d y Z d ϮϬϭϭͲϭϯ ϭθϱ ϭϵϯ <>K' ϭ ϭ ϭ Ϯ Z Θ Ͳϭϭ ϭϭ /s DzZ Ϭ ϭϳ Ϯ ϳйͿ ϰϲ ϱϭ ^ŚĂƌĞƐ ϮϯϬD &ůžăƚ ϭϭϭd D'Dd ŽǁŶƐ ^ / d y Z, /^ /s ^dd d,k> /' KDW z ' ' / > dd/' K& WZKW Zd/ ^ WZKs/^/K K& D ' D d ^ Zs/ ^ d, KDW z KW Z d ^ / dtk ^ 'D d^ WZKW Zdz ^ 'D d D h& dhz/' ^ 'D d t <>z Source: Corporate Website hz^ D > z^/ džđś Dz>ϰϳϯϭKKϬϬϱ нϲϭ ϯ ϱϱϭϵ ϭϯϯϱ W^ ZĂŶŬ ϵϯ ϭ Ϯϵ ϭ ϬϬ Scientex Ϭ ϭϰ ϭ Ϭ ϭϯ Ϭ ϵ Ϭ ϭϭ Ϭ ϴ Ϭ Ϭϵϵ Ϭ ϳ Ϭ ϲ Ϭ Ϭϴϱ Solid PS and revenue growth Ϭ Ϭϲϴ Ϭ ϬϲϮ Ϭ ϰθ Ϭ ϰϰ >K' Company Overview Scientex is one of the leading producers of polypropylene strapping band and consumer packaging products in sia. It is also one of the top three manufacturers of industrial stretch film globally, with a production output of 150,000 metric tons per annum (mtpa). It has manufacturing facilities in Malaysia, Vietnam and the U.S. and sales and marketing arms in Japan, Indonesia, and Singapore. Its products are exported to more than 60 countries. Q1 FY 2018 revenues by segment: manufacturing, 71%; property, 29%. O eil Methodology Scientex has been consolidating over the last three months. The stock is trading close to its 50-DM. It has stable technical ratings, with an RS Rating of 75, an /D Rating of, and an Up Down volume ratio of 2.2. In Q1 FY 2018, the Company s revenue and net profit grew 23% and 39% y/y to MYR 658.7M and MYR 72.4M. PS for the quarter stood at sen, growing 32% y/y, strengthening its PS Rank to 97. In FY 2017, the Company launched 16 new projects worth MYR 616.9M, mainly for affordable residential segments, and has unbilled sales of MYR 500M, which will be recognized in the next two to three years. ϭd sk>hd ϵϱϯ ϯ< ϯϭϭ< нθϯй ϱϭ< Ξ :,//,$0 2 1(,/ &2,1& :h> Ϭϵ K d Ϭϵ &/ / >^ Ϭ Ϭϳ Ϭ Ϭϲ W^ DzZͿ ͲϯϬй нϭϭϭй W^ й, ' ϭϯϰ ϴ ϭϲϰ ϵ ^ > ^ D/> DzZͿ ͲϮϬй нϳй ^ > ^ й, ' : ϭϭ Ϭ Ϭϲ нϭϭϭй ϭϱθ ϳ нϰϳй WZ ϭϭ Ϭ Ϭϴ нϲϭй ϭϳϵ ϱ нϱθй :h> ϭϭ Ϭ Ϭϴ нϭϰй ϭθϲ ϲ нϭϯй : ϭϭ Ϭ Ϭϵ нϱϭй ϭϵϰ ϵ нϯϯй WZ ϭϭ Ϭ Ϭϵ нϭϯй Ϯϭϳ ϯ нϯϭй :h> ϭϭ Ϭ ϭϭ нϯϱй ϮϬϱ Ϯ нϳй K d ϭϭ Ϭ ϭϭ нϯϱй Ϯϭϯ ϴ нϭϱй : ϭϯ Ϭ Ϭϵ Ϭй Ϯϭϰ ϱ нϭϭй WZ ϭϯ Ϭ Ϭϵ Ϭй ϮϮϲ ϴ нϰй :h> ϭϯ Ϭ ϭϭ нϭϭй ϮϮϲ Ϭ нϭϭй K d ϭϯ Ϭ ϭϯ нϯϭй Ϯϰϭ ϲ нϭϯй : ϭϯ Ϭ ϭϯ нϯϯй Ϯϳϭ ϭ нϯϲй WZ ϭϯ Ϭ ϭϰ нϱϲй ϯϰϱ ϭ нϱϯй :h> ϭϯ Ϭ ϭϰ нϯϳй ϯϳϭ Ϯ нϲϰй K d ϭϯ Ϭ ϭϯ нθй : ϭϰ Ϭ ϭϱ нϯϱй WZ ϭϰ Ϭ ϭϲ нϭϰй ϯϲϰ ϴ нϱϭй ϯθϯ ϱ нϰϭй ϰϯϲ ϴ нϯϰй W^ й ^hzwz/^ ϰ ϰ ϰ ϰ ϰ ϰ ϰ ϳ ϳ ϳ ϳ ϲ ϲ ϵ ϭϭ ϭϵ Ϯϰ Ϯϲ &h ^ ϭ ϭϲϭ ϰϳϰ ϭ ϭϲϭ ϰϳϰ ϭ ϭϲϭ ϰϳϰ ϭ ϭϲϭ ϰϳϰ ϭ ϭϲϭ ϰϳϰ ϭ ϭϲϭ ϰϳϰ ϭ ϭϲϭ ϰϳϰ ϭ ϱθϯ ϭϳϰ ϭ ϱθϯ ϭϳϰ ϭ ϱϱϵ ϯϳϰ ϭ ϱϲϭ ϴϳϰ ϭ ϱϯϯ ϴϳϰ ϭ ϱϯϲ ϭϳϰ ϭ ϲϱϳ ϵϰϭ ϭ ϱϭϲ ϬϰϬ ϭ ϴϱϱ ϱϰϭ Ϯ ϴϯϮ ϲϰϭ ϳ ϳϭϯ Ϯϭϯ ^, Z ^, > z &h ^ Ϯϱ ϲ ϳϰϰ Ϯϭϯ Ϯϳ ϴD ϮϬϭϰ t/>>/ D KΖ /> н K / ϭϵϭ ϳ нϰϯй K d ϭϭ Ϭ Ϭϴ нϯϯй :h> ϭϰ W ϭϭ ϮϬϭϱ Ɛƚ ϴ ϱͳljƌ,ŝőś ϭϯ ϱͳljƌ >Žǁ ϱ ǀƐ /ŶĚ ǀŐ Ϭ ϲdž ^ / d y ^d y DzͿ tğğŭůlj ĂƐ ŽĨ t ϭϯ ƵŐƵƐƚ ϮϬϭϰ ϭϯ ƵŐƵƐƚ ϮϬϭϰ Growth Drivers On ugust 9, 2017, the Company purchased 65.3 acres of land in Rawang, Selangor for MYR 85.4M. The purchase will increase its land bank to 2,700 acres and will create a pipeline of projects worth approximately MYR 9B in gross development value (GDV) over the next 10 years. Scientex announced a capital expenditure of $25M to setup a new stretch film manufacturing plant in rizona, U.S, on ovember 10, The new plant will house two stretch film lines with a capacity of about 30,000 mtpa and is commencing operations in January. s of December 2016, Scientex completed its expansions in BOPP film manufacturing and the setup of its new CPP film plant. The BOPP film plant strengthened its capability to supply flexible packaging films to packaging converters. Management is paying a dividend of 16 sen for FY 2017, which includes an interim dividend of 6 sen per share. The Company has a dividend policy to distribute at least 30% of net profit to shareholders. ooking Forward In FY 2018, the Company plans to launch more affordable homes and expects to surpass last year s new launches, valued at MYR 620M. ext Catalyst: The Company s Q2 FY 2018 results to be reported on March ocal Code: 4731 Bloomberg Symbol: SCI:MK ISI: MY4731OO005

100 Scientex MYSI SCITX KS (STX.MY) COTIRS/PCKGIG M M SHRS RIGS BUSISS: MGMT owns X-DIV SC SCITX BRHD IS PRODUCR OF IDUSTRI STRTCH FIM. SGMT IS I TH BUSISS OF COSTRUCTIG D DVOPIG PRIC = TH PRICIP CTIVITIS OF TH COMPY R IVSTMT RSIDTI, COMMRCI D IDUSTRI PROPRTIS D 10 X PS HODIG D PROVISIO OF MGMT SRVICS. TH COMPY'S PROPRTY MGMT. TH COMPY'S SUBSIDIRIS, ICUDIG OPRTS THROUGH TWO BUSISS SGMTS: MUFCTURIG D SCITX QUTRI SD. BHD., SCITX IDUSTRIS GROUP SD. PROPRTY DVOPMT. TH MUFCTURIG SGMT IS MIY I BHD., SCITX PCKGIG FIM SD. BHD. D SCITX POYMR 4.20 TH BUSISS OF MUFCTURIG OF VRIOUS PCKGIG PRODUCTS SD. BHD., R GGD I PROPRTY IVSTMT D 4.00 D MUFCTURIG OF MTRIS FOR UTOMOTIV ITRIOR. DVOPMT, D MUFCTURIG POYVIY CHORID (PVC) 3.80 ICUDD I THIS SGMT IS SO TH SS D MRKTIG OF FIMS D SHTS, D TRDIG OF PCKGIG RTD 3.60 MITIG POYURTH DHSIVS. TH PROPRTY DVOPMT MTRIS, MOG OTHRS U W K Y PS MYR (JU.) CF/SHR MYR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI MYR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP MYR 4.25BI. SS MYR2.53 BI MYSI PS RTIG 97 IC 1986 MYR8.69(OH -11%) PRIC SC Up % Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(7 STBIITY) +15% %(6 STBIITY) +20% COMPOSIT RTIG IVT T/O 5.7x DBT % %: 20%: 11% %: 20%: 19% TX RT : : BCKOG X '17 BK.V R&D DIV 0.16(1.8%) DIV GR RT+21% (6) BT 0.23(0) PH 0.08(0.07) KPCOMP % Global Focus M MYR /1 1.8 VOUM 7M 4M 2M 1M 700 K 400 K PS (MYR) % CHG SS(BI MYR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 8.0% +19.3% /15586 DC % % 8.8% +20.3% /13765 MR % % 8.5% +20.4% /15291 JU % % 11.8% +22.1% /16975 SP % % 7.0% +21.2% /27959 DC % % 7.8% +20.7% % % 9.4% +20.5% /27722 MR 15 45/23185 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Capital quipment: Containers/Packaging % % 10.8% +19.1% /24870 SP % % 11.1% +21.2% /27488 DC % % 11.8% +23.4% /33183 MR % % 11.3% +23.5% /35217 JU % % 9.6% +22.7% /44027 SP % % 9.7% +20.7% /41896 DC % % 11.1% +20.0% /42989 MR % % 10.5% +19.1% /43242 JU 17 FOR IFORMTIO, C OR VISIT % % 11.2% +18.8% /45773 SP % % 11.0% +19.5% '13-18 P..'S OW OW HI ST 76/45544 DC 17 6X 15X 17X MR 18 TM DTGRPHS 2/2/2018

101 TIW ŚƌŽŵĂ ƚğ D dt &K ϮϬ dž Source: Corporate Website Chroma te d /t džđś dtϭϭϭϯϯϲϭϭϭϱ нθθϲ ϯ ϯϯϳ ϵϵϵϵ W^ ZĂŶŬ ϴϱ ĐŚƌŽŵĂĂƚĞ ĐŽŵ ůğđƚƌŝđăůͳwžǁğƌ ƋƵŝƉŵƚ DŬƚ ĂƉ dt ϯϳ ϬϬ ^ĂůĞƐ dt ϭϭ ϰϭ <ƵĞŝͲ^ŚĂŶ,ƐŝĂŶŐ d /t IURP 3YRW Q :HH Improving /D and high up/down volume K, ͲϮй >K' &ŝdžğěͿ WZ/ ϯθϭ,zkd d / /^ d /t Ͳ ^ KDW z WZ/ /W >>z ' ' / d, D h& dhz ^ > K& WZ /^/K > dzk/ ^ d ^d/' /^dzhd d^ hdkd d/ d ^d/' ^z^d D d^Ϳ WZK h d^ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ ϰ ϯθ ϯ ϬϬ Ϯ ϯϯ ϰ ϴϲ ϰ Ϭϲ Ϯ ϰϲ ϯ Ϯϭ ϯ ϱϭ ϯ Ϯϴ W^ dt ϰ ϯϲ ϯϯйÿ ϱ Ϯϱ ϮϬйŸ ^, &>Kt ^,Z dt ϱ ϯϵ ϯ ϲθ ϯ ϬϮ ϱ ϵϭ ϱ Ϭϳ ϯ ϱϭ ϰ Ϭϭ ϰ ϱϰ ϰ Ϯϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϭϲй ϭϭй ϵй ϭϰй ϭϯй ϭϭй ϭϰй ϭϱй ϭϱй ϮϬϭϰͲϭϲ ϭϭй ϲ ^ƚăďŝůŝƚljͿ Ϯй Z dhz K Yh/dz й Ϯϳй ϭθй ϭϰй Ϯϲй ϮϬй ϭϯй ϭϱй ϭϱй ϭϯй ϮϬϭϮͲϭϲ ϰй ϭϲ ^ƚăďŝůŝƚljͿ Ͳϲй ^ > ^ й, ' ϰθй Ͳϯй Ͳϭϭй ϯϲй Ͳϱй Ͳϭϴй Ͳϭϯй ϭй Ͳϲй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ dt ϭϯ< ϭϯ< ϭϭ< ϭϱ< ϭϰ< ϭϯ< ϭϭ< ϭϭ< ϵ ϲϵϯ /s d K Ϯ ϵdž Ϯϳ t <>z ĞĐ ϯϭ :ĂŶ Ϭϲ :ĂŶ ϭϯ :ĂŶ ϮϬ :ĂŶ Ϯϳ &Ğď Ϭϯ &Ğď ϭϭ &Ğď ϭϳ &Ğď ϮϮ d й ϮϬϭϯͲϭϱ ϭϭй Ϯϳй ϯϯй d 'Z W, Z d/' ϱϭ ϱϯ ϲϲ ϲϱ ϲϱ ϲϲ ϲϯ ϲϱ ϲϵ d y Z d ϮϬϭϯͲϭϱ ϭϳй ϭϱй ϭϵй s' />z sk> ϬϬϬͿ ϳϭϳ ϱϯϰ ϱϳθ ϱϯϭ ϱϯϲ ϱϲϳ ϱθϲ ϲϳϯ ϴϳϯ <>K' ϮϬϭϯͲϭϱ ϵ ϬϬй < s > ϯ ϰϲdž Ζϭϱ hw Kt sk>hd Ϭ ϵ Ϭ ϵ ϭ Ϯ ϭ ϰ ϭ ϳ Ϯ ϭ Ϯ ϰ Ϯ ϯ ϯ ϰ Z Θ hd /^d Z d/' ϭϯ ϯϯ ϯϱ ϯϱ ϯϱ ϰθ ϱθ ϱϭ ϲϵ /s dt Ϯ ϯϳ Ϯ ϴйͿ /s 'Z ZdͲϲй ϭθͿ Ϭ ϲϳ ϵ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϱͿ Z > d/s ^dz 'd, ϲϯ ϲϱ ϳϯ ϳϮ ϳϭ ϲϳ ϲθ ϳϭ ϴϮ d 'ZKhW Z < ϲϱ ϰϯ ϯϲ Ϯϲ Ϯϴ Ϯϲ ϮϮ ϮϮ ϱϭ ϮϬϭϱ DW>Kz ^ Ϯ Ϯϰϳ ϮйͿ Chroma T manufactures precision electronics testing instruments and automatic testing system products. Increasing demand for semiconductor testing equipment will continue to drive the Company s growth. ^ŚĂƌĞƐ ϯϵϭd &ůžăƚ ϯϲϲd D'Dd ŽǁŶƐ ϯϰϭ Minimal overhead supply Increased estimates ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ ϭϵϭ Strong break out to new highs from over two year long consolidation 40-Week M ϭϳϭ ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϰ ϵϭ dt нϳ ϵϭ нϵ Ϭϴй ϵϭ ϴϬ ϳϬ ϲϭ 10-Week M ϴϮ н ϱϭ ϰϲ ϰϯ ϯθ Company Overview Chroma s products include power and electronic tests, video and color tests, passive component tests, CD/CM tests, and photo-voltaic tests. Q sales by segment: testing equipment, 74%; new material, 13%; modular assembly system (MS), 9%; other, 4%. O eil Methodology The stock is trading constructively above its 50-DM and is extended. We recommend holding it, as it has strong technical profile, with an RS Rating of 93 and /D Rating of -. Sales and PS grew an average of 7% and 15%, y/y, respectively, over the past three years. PS Rank is 85. In Q3 2017, revenues grew 10% y/y to TWD 3.9B, driven by 184% y/y growth in MS revenues and 142% y/y revenue growth in semiconductor solutions. Diluted PS in the latest quarter grew 46% y/y to TWD 2.08, led by a 300bps expansion in gross profit margins and a seven-fold increase in subsidiaries income. Growth Drivers Chroma has headroom to increase its business exposure further in China, which contributes about 50% to its top line. The Company, through its complete line of testing equipment for motor control, direct/direct power conversion, charger, and battery pack can cater to China s electric vehicle market, which is still nascent. In light of increasing demand for turnkey testing/packaging and automated manufacturing solutions due to increasing labor costs, there is strong growth potential for Chroma s turnkey solution products and MS. ϯϰ Sharp improvement in R/S with best /D rating ϯϭ Ϯϲ Ϯϰ ϮϮ ϭϵ Strong volume supporting move ϭϳ ϭϱ ϭϯ ϭϯ Sponsorship at highs >/ sk>hd ϮϭD ϭϱd ϭϭ ϴD ϵd нϰϲϵй Ϯ&/ / >^ :ƵŶ ϭϯ ^ĞƉ ϭϯ ϯ W^ dt Ϳ Ϭ ϳϲ Ϭ ϴϰ й W^ й, ' ͲϰϮй ͲϯϮй ϴ^ > ^ D/> dt Ϳ ϯ Ϭϴϵ ϴ ϯ ϮϯϬ ϰ й^ > ^ й, ' ͲϮϱй Ͳϴй ĞĐ ϭϯ Ϭ ϱϯ нϭϱй Ϯ ϲϯϳ ϭ Ͳϭϰй DĂƌ ϭϯ Ϭ ϱθ нϳϲй Ϯ ϭϲϲ ϵ ͲϮϰй :ƵŶ ϭϯ ϭ ϭϰ нϱϭй Ϯ ϴϴϴ ϭ Ͳϳй ^ĞƉ ϭϯ Ϭ ϳϰ ͲϭϮй Ϯ ϲθϯ ϳ Ͳϭϳй й W^ й ^hzwz/^ Ͳϭϭ Ϭй Ͳϴ ϴй ϵ&h ^ ϭϭϯ ϵϰ ϵ^, Z ^, > z &h ^ ϭϯϯd ϭϭθd Ͳϳ ϲй ϭϭϵ ϭϯϲd Ͳϲ ϱй ϭϭϱ ϭϯϯd нϰϯ Ϭй ϭϭϱ ϭϭϵd ͲϮϵ ϴй ϭϭϵ ϵϵd Π ϮϬϭϳ t/>>/ D KΖ /> н K / ĞĐ ϭϯ Ϭ ϳϱ нϰϯй Ϯ ϰϯϭ ϵ Ͳϳй DĂƌ ϭϰ Ϭ ϰθ Ͳϭϳй Ϯ ϬϬϲ ϭ Ͳϳй :ƵŶ ϭϰ Ϭ ϴϵ ͲϮϮй Ϯ ϲϯϳ ϱ Ͳϵй ^ĞƉ ϭϰ ϭ ϯϭ нϳϲй ϯ Ϭϲϲ ϯ нϭϰй ĞĐ ϭϰ Ϭ ϴϱ нϭϯй Ϯ ϲϭϳ Ϯ нϳй DĂƌ ϭϱ Ϭ ϯϯ Ͳϯϭй ϭ ϵϯϯ ϴ Ͳϰй ϭϭϰ ϵϰd Ͳϭϲ ϱй ϭϭϵ ϭϭϯd Ͳϵ ϴй ϭϯϭ ϭϯϲd нϱ ϰй ϭϱϰ ϭϰϯd Ͳϭϰ ϯй ϭϱϰ ϭϰϲd Ͳϰϴ ϲй ϭϱϱ ϭϰϯd :ƵŶ ϭϱ ϭ Ϭϭ нϭϯй Ϯ ϳϬϵ ϱ нϯй ^ĞƉ ϭϱ ϭ Ϯϴ ͲϮй Ϯ ϰϵθ ϭ Ͳϭϵй ϭϯϭ ϭϯϭd Ͳϰ ϰй ϭϯϰ ϭϯϲd ĞĐ ϭϱ Ϭ ϲϲ ͲϮϮй Ϯ ϱϲϭ ϭ ͲϮй DĂƌ ϭϲ Ϭ ϴϱ нϭϱθй Ϯ ϲϭϭ ϭ нϯϲй ϭϰϭ ϭϯϵd нϭϭϲ Ϯй ϭϰϱ ϭϯθd :ƵŶ ϭϲ ϭ ϭϳ нϭϲй Ϯ ϲθϯ Ϯ Ͳϭй ^ĞƉ ϭϲ ϭ ϱϯ нϭϵй ϯ ϱϱϳ Ϭ нϰϯй ĞĐ ϭϲ Ϭ ϵϭğ нϯϲйğ Ϯ ϳϯϱ ϳĞ нϳйğ DĂƌ ϭϳ ϭ ϬϲĞ нϯϱйğ Ϯ ϲϵϵ ϱğ нϯйğ :ƵŶ ϭϳ ϭ ϯϯğ нϭϯйğ ϯ ϭϭϰ ϯğ нϭϲйğ ^ĞƉ ϭϳ ϭ ϳϲĞ нϭϲйğ ϯ ϲϵϭ ϬĞ нϰйğ W Ϯϭ ϮϬϭϳ Ɛƚ ϭθ Ϭ ϱͳljƌ,ŝőś ϯϯ Ϭ ϱͳljƌ >Žǁ ϭϰ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϴdž ϭϰϲ ϭϰϯd ϭϲθ ϭϰϱd ϭϱϳ ϭϰθd ŚƌŽŵĂ ƚğ D dtͿ tğğŭůlj ĂƐ ŽĨ tğě &ĞďƌƵĂƌLJ ϮϮ ϮϬϭϳ &ĞďƌƵĂƌLJ ϮϮ ϮϬϭϳ For the vertical-cavity surface-emitting laser market, the Company believes that it has the most complete line of machines for testing at the wafer, package, and module level. WISMI is already its fast-growing customer. In the mid/low end of the semiconductor testing market, Chroma has developed low-cost system-level testing equipment with a speed of 100 MHz, which is sufficient for most consumer applications. ooking Forward ccording to management, growing demand for high power electronics testing, a trend toward laser diode and analog test systems, and battery cell order delivery of its turnkey business will drive growth in Q Continued revenue growth in the MS subsidiary will complement the growth of the Company. ext Catalyst: The Company s Q results, expected on February 22, ocal Code: T2360 Bloomberg Symbol: 2360:TT ISI: TW

102 Chroma te TIW CHROM T (CM.TW) TI CTRIC-POWR/QUIPMT M M SHRS RIGS BUSISS: MGMT owns X-DIV SC CHROM T IC. IS TIW-BSD COMPY PRICIPY IGHT MITTIG DIOD (D) TSTIG SOUTIOS, PHOTOVOTIC PRIC = GGD I TH MUFCTUR D S OF PRCISIO CTROICS TSTIG SOUTIOS, S W S COMPUTR PRIPHRS, MOG 10 X PS TSTIG ISTRUMTS D UTOMTIC TSTIG SYSTM (TS) OTHRS. TH COMPY DISTRIBUTS ITS PRODUCTS I BOTH PRODUCTS. TH COMPY MIY PROVIDS POWR D CTROIC DOMSTIC D OVRSS MRKTS. THROUGH ITS SUBSIDIRIS, IT TSTIG SOUTIOS, VIDO D COOR TSTIG SOUTIOS, IS IVOVD I TH MUFCTUR OF COPPR WIRS, GOD THRDS PSSIV COMPOT TSTIG SOUTIOS, IQUID CRYST DISPY D D FR SODR JOITS, WHICH R USD FOR (CD)/IGHTIG COTRO MODU (CM) TSTIG SOUTIOS, SMICODUCTOR MTRIS, S W S UTOMTD TRSPORTTIO SMICODUCTOR/ITGRTD CIRCUIT (IC) TSTIG SOUTIOS, GIRIG BUSISS U W K Y PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP TWD 71.67BI. SS TWD12.46 BI TIW PS RTIG 94 TWD174.00(OH -7%) Up 83.35% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(6 STBIITY) +8% %(6 STBIITY) +1% COMPOSIT RTIG IVT T/O PRIC SC x DBT % %: 33%: 26% 15%: 19%: 17% TX RT : : BCKOG X '16 BK.V R&D 8.9% DIV 3.22(1.9%) DIV GR RT+3% (11) BT 0.86(3) PH 0.23(0.10) TIWGHT % Global Focus M TWD B VOUM 8M 4M SP Q -44% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 11.6% +14.7% /94030 DC % % 8.9% +13.7% /102M MR % % 12.7% +13.2% /126M JU % % 15.9% +15.0% /142M SP % % 12.2% +14.7% /145M DC % % 6.4% +13.9% % % 14.1% +15.5% /143M MR /129M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Capital quipment: lectrical-power/quipmt % % 19.3% +14.4% /126M SP % % 9.8% +13.2% /138M DC % % 12.3% +15.0% /139M MR % % 16.5% +16.7% /145M JU % % 16.1% +16.4% /154M SP % % 13.8% +17.1% /157M DC % % 10.4% +15.6% /156M MR % % 17.3% +17.2% /162M JU 17 FOR IFORMTIO, C OR VISIT % % 22.1% +18.4% DC Q % '13-18 P..'S OW OW HI ST 193/179M SP 17 2M 800 K DC 17 13X 27X 32X MR 18 TM DTGRPHS 2/2/2018

103 IDOSI hŷŝƚğě dƌăđƚžƌɛ hdz / W^ ϭϱ dž ϴ Ϭ< ϳ ϯ< ϲ ϳ< ϲ Ϭ< ϱ ϯ< Source: Corporate Website ϰ ϳ< ϰ Ϭ< United Tractors (UTR.ID) is the leading and largest heavy equipment distributor with an exclusive right to distribute Komatsu products in Indonesia. The Company is expected to benefit from its leadership position in the heavy machinery and mining contracting segments. Company Overview UT is a subsidiary of stra International, supported by a network of 20 branches, 21 site supports, 10 representative offices, and 14 mine offices across Indonesia. 9M 2017 revenues by segment: mining contracting, 46%; construction machinery, 38%; mining, 12%; construction industry, 4%. O eil Methodology The stock broke out of a nine-week cup on heavy volume. The Company s 2016 pretax margin of 15% in 2016 is expected to further improve, supported by revenue growth and pricing power from the heavy machinery and mining contracting segments. Q pretax margin rose to 19% RO of 13% recovered from a multi-year low of 10% in 2015 and further increased to 18% in Q In 9M 2017, revenues and net income grew 36% and 80%, y/y, respectively, driven by significant performance across all segments. Q revenue growth accelerated to 48%, y/y. Growth Drivers In the construction machinery business, UT dominates the segment with a 36% market share as of September The construction machinery segment is the second largest contributor to the Company s revenues, at 38%. It also continues to maintain an ongoing gross margin of approximately 22% from fter declining revenues from , the Company saw a 7% y/y increase in revenues in s of September 2017, it saw a 64% y/y surge in revenues from the construction machinery segment, primarily driven by a 73% y/y expansion in Komatsu sales volume. ϯ ϯ< ϯ ϭ< United Tractors /ŶĚŽŶĞƐŝĂ ^ džđś / ϭϭϭϭϭϱθϰϭϳ нϲϯ Ϯϭ Ϯϰϱϳϵϵϵϵ W^ ZĂŶŬ ϳϰ ƵŶŝƚĞĚƚƌĂĐƚŽƌƐ ĐŽŵ ŶĞƌŐLJͲ ŽĂů DŬƚ ĂƉ / ZϭϱϬ ϳϵd ^ĂůĞƐ / Zϱϳ ϵϭd :ĂŬĂƌƚĂ / K ^/ /ŶĐ ϭϵϳϯ ^ŚĂƌĞƐ ϯ ϳϯϬ &ůžăƚ ϭ ϱϯϵ W^ ƵĞ ŝŷ ϯϰ ĂLJƐ ĞͿ K, Ϭй D'Dd ŽǁŶƐ Wd h/d dz dkz^ d < /^ / K ^/ Ͳ ^ KDW z WZ/D Z/>z ' ' / d, WZKs/^/K K& D//' KdZ d/' D :KZ h^/ ^^ d/s/d/ ^ K& d, KDW z /d^ ^h ^/ / Z/ ^ Z d 'KZ/ /dk &KhZ ^ 'D d^ K^dZh d/k D,/ Zz D//' KdZ d/' K > D//' K^dZh d/k / h^dzz DKZ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϴϰϵ ϵϭ ϭ ϭϭϯ ϳϲ ϭ ϭϭϵ ϭϭ ϭ ϲϱϳ ϬϬ ϭ ϱϰϵ ϰϱ ϭ Ϯϵϱ ϴϱ ϭ ϰϯϵ ϱϯ ϭ Ϭϯϯ Ϭϳ ϭ ϯϰϭ Ϭϯ W^ / Z Ϯ Ϭϲϲ ϰϭ ϱϰй Ϯ ϯϱϯ ϭϯ ϭϰйÿ ^, &>Kt ^,Z / Z ϭ< ϭ< ϳϬϳ Ϯϴ ϯ< Ϯ< ϯ< ϯ< ϯ< ϯ< ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϭϰй ϭϵй ϭϰй ϭϰй ϭϯй ϭϯй ϭϯй ϴй ϭϱй ϮϬϭϱͲϭϳ Ͳϯй ϱϵ ^ƚăďŝůŝƚljͿ Ͳϭй Z dhz K Yh/dz й ϯϯй ϯϭй Ϯϲй Ϯϴй Ϯϭй ϭϱй ϭϱй ϭϭй ϭϯй ϮϬϭϯͲϭϳ Ͳϲй ϰϱ ^ƚăďŝůŝƚljͿ ͲϮй ^DZ Z d/' ^ > ^ й, ' ϱϰй ϱй Ϯϴй ϰϳй Ϯй Ͳϵй ϰй Ͳϳй Ͳϴй KDW Z d/' ^ > ^ D/>Ϳ / Z ϮϴD ϮϵD ϯϳd ϱϱd ϱϲd ϱϭd ϱϯd ϰϵd ϰϲd /s d K ϰdž ϰϭ t <>z ĞĐ Ϭϭ ĞĐ Ϭϴ ĞĐ ϭϱ ĞĐ ϮϮ ĞĐ Ϯϵ :ĂŶ Ϭϱ :ĂŶ ϭϯ :ĂŶ ϭϵ :ĂŶ Ϯϯ d й ϮϬϭϰͲϭϲ ϯ ϲй ϯй Ϭ Ϯϭй d 'Z W, Z d/' ϴϯ ϴϬ ϳϴ ϴϭ ϴϭ ϴϭ ϴϭ ϴϬ ϴϮ d y Z d ϮϬϭϰͲϭϲ Ϯϳй ϯϰй Ϯϰй s' />z sk> ϬϬϬͿ ϯ ϴϯϵ ϯ ϵθϭ ϰ ϬϴϮ ϰ ϭϱϳ ϰ ϭϲϯ ϰ Ϯϰϲ ϰ Ϭϵϯ ϰ ϬϬϮ ϰ Ϭϯϭ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ Ϯ ϭ Ϭ Ϭ ϵ Ϭ ϴ Ϭ ϵ ϭ Ϭ ϭ ϭ ϭ ϭ ϭ ϯ Z Θ < s > ϯ ϯϯdž Ζϭϲ hd /^d Z d/' ϭϭ ϱ ϰ ͲϮ ϯ ϭ ϭϯ ϵ ϭθ /s / Z ϱϯϱ ϬϬ ϭ ϴйͿ /s 'Z Zdнϭй ϭϱͿ Z > d/s ^dz 'd, ϴϰ ϴϮ ϴϰ ϴϵ ϴϳ ϴϲ ϴϴ ϴϰ ϴϴ d Ϯ ϬϮ Ϯϭ ϬϬͿ >W, Ϭ Ϭϳ Ϭ ϬϯͿ 'ZKhW Z < ϳ ϭϭ ϭϯ ϭϯ ϭϲ ϭϯ ϴ ϭϭ ϵ ϮϬϭϲ DW>Kz ^ Ϯϳ Ϭϳϭ ϬйͿ >K' &ŝdžğěͿ WZ/ ϭϯϭ< ϭϭϭ< 5PGRDD %03 STIMTS ϭϭϭ< ϵϭ< ϴϬ< ϳϬ< ϲϭ< "RKS OUT OF I WK CSOIDTIO ϱϭ< ϰϲ< Ϯ ϴ< ϰϯ< ϰϭ ϰϯϱ -RGI RCOVRY Ϯ ϱ< Ϯ ϯ< ϯθ< нϯ ϬϮϱ ϯϰ< Ϯ Ϭ< Ϯ Ϭ< ϯϭ< ϭ ϳ< ϭ ϲ< ϭ ϱ< Ϯϲ< Ϯϰ< ϮϮ< ϴϴ ϭ ϯ< ϭ ϭ< / Z нθ Ϭϵй ϭϵ< ϭϳ< ϭ Ϭ< ϭϱ< ϴϲϲ ϳ ϴϬϬ Ϭ ϳϯϯ ϯ ϭϯ< ϭϯ< ϭϭ< ϲϲϲ ϳ ϭϭ< ϲϭϭ Ϭ ϵϭϭϭ 3TDY UPTRD I 23 FOR TWO YRS ϱϯϯ ϯ ϴϬϬϬ ϰϲϲ ϳ ϳϬϬϬ ϰϭϭ Ϭ ϲϭϭϭ ϯϯϯ ϯ ϯϭϲ ϳ ϱϭϭϭ ϰϲϭϭ 3S %03 GROWTH CCRTIO ϮϴϬ Ϭ ϰϯϭϭ >K' sk>hd ϮϬD ϴD ϴ ϱd ϱd нϭϳй :ƵŶ ϭϯ ^ĞƉ ϭϯ &/ / >^ ϯϭϲ ϲϭ Ϯϴϲ ϳϬ W^ / ZͿ ͲϮϰй ͲϮϯй W^ й, ' ĞĐ ϭϯ ϯθϵ ϵϱ нϭϭй DĂƌ ϭϰ ϰϯϯ ϲϭ нϰϭй :ƵŶ ϭϰ ϰϱϳ ϳϴ нϰϱй ^ĞƉ ϭϰ ϯϵϵ ϲϲ нϯϵй ĞĐ ϭϰ ϭϱϵ ϰθ Ͳϱϵй DĂƌ ϭϱ ϰϯθ ϲθ нϰй :ƵŶ ϭϱ ϰϳϰ ϰϱ нϰй ^ĞƉ ϭϱ ϱθϭ ϳϰ нϰϱй ĞĐ ϭϱ ͲϰϲϬ ϴϬ Ͳϯϴϵй DĂƌ ϭϲ ϭϵϱ ϴϰ Ͳϱϱй :ƵŶ ϭϲ ϯϭϭ Ϭϳ Ͳϯϳй ^ĞƉ ϭϲ ϯϰϭ ϰϭ Ͳϰϭй ĞĐ ϭϲ ϱϭϯ ϳϬ нϯϭϵй DĂƌ ϭϳ ϰϭϯ ϰϯ нϭϭϱй :ƵŶ ϭϳ ϱϭϱ Ϯϭ нϳϭй ^ĞƉ ϭϳ ϱϵϯ ϵϰ нϳϰй ϭϯ ϰϱϭ Ϯϭϲ Ϭ ^ > ^ D/> / ZͿ ϭϯ ϰd ͲϮϬй Ͳϴй ^ > ^ й, ' нϵ ϱй нθ ϲй D Z'/ &d Z d y ϭϯ ϳD нϭϲй нϭϭ ϲй ϭϯ ϵd нϭϯй нϭϭ ϯй ϭϯ ϲd нϵй нϭϯ ϱй ϭϯ ϯd нϳй нϭϭ Ϯй ϭϯ ϯd ͲϭϬй нϰ ϴй ϭϯ ϲd Ͳϵй нϭϯ ϵй ϭϯ ϯd ͲϭϬй нϭϰ ϰй ϭϯ ϯd нϭй нϭϲ Ϯй ϭϭ ϭd ͲϭϬй Ͳϭϱ ϲй ϭϭ ϳD Ͳϭϱй нϲ ϴй ϭϭ ϵd Ͳϰй нϵ ϱй ϭϭ ϯd Ͳϭϱй нϭϭ Ϯй ϭϭ ϲd нϱй нϭϲ ϭй ϭϯ ϳD нϯθй нϭϭ Ϭй ϭϱ ϴD нϯϯй нϭϯ Ϯй ϭϲ ϴD нϰθй нϭϯ Ϯй ϭϯͳϭϲ Ϯϳϰ ϭϯͳϭϱ ϮϴϮ ϭϯͳϭϱ ϯϭϯ ϭϯͳϭϱ ϯϯϰ ϭϭͳϭϰ ϯϰϭ ϭϯͳϭϱ ϯϱϱ ϭϯͳϭϲ ϯϲϰ ϵͳϭϯ ϯϵϰ ϭϯͳϯϭ ϰϭϭ ϭθͳϯϯ ϰϭϱ ϮϬͲϮϴ ϰϭθ ϯϵͳϱϭ ϰϯϱ ϭϯͳϭθ ϰϰϭ ϭϯͳϭθ ϰϳϯ ϭϯͳϭϳ ϱϯϰ ϭϱͳϭθ ϱϰϲ ϭϯͳϭϰ W >KtͲ,/', &h ^ Ϯϵϱ ϭϭͳϭϱ Ϯϴϲ Π ϮϬϭϴ t/>>/ D KΖ /> н K / ĞĐ ϭϳ ϳϲϲ ϮϲĞ нϱϯйğ DĂƌ ϭθ :ƵŶ ϭθ ^ĞƉ ϭθ W ϭθ ϮϬϭϴ Ɛƚ ϭϳ Ϯ ϮϬϭϵ Ɛƚ ϭϱ ϳ ϱͳljƌ,ŝőś ϱϭ ϱͳljƌ >Žǁ ϵ ϱϰϲ ǀƐ /ŶĚ ǀŐ Ϭ ϴdž hŷŝƚğě dƌăđƚžƌɛ hdz / Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ :ĂŶƵĂƌLJ Ϯϯ ϮϬϭϴ The global heavy construction equipment market is expected to have a CGR of 5.4% to $90.4B from , due to an increasing investment in infrastructure. This creates opportunity for the Company to further generate revenues. The Company operates its mining contracting segment through PT Pamapersada usantar, the largest mining contractor in Indonesia with a 48% revenue market share. Medium-term (3-5 years) to long-term (8-10 years) contractual agreements and concession rights to a coal mining area of 4,897 hectares for 30 years promises sustainable revenues for the Company, providing a production capacity of 2.5M tons per year. Revenues from its mining segment grew 34% y/y as of 9M ending September The segment continues to benefit from the strong coal pricing trend with ewcastle GR 6,300 kcal at $88.2/ton average for 2017 and $97.8/ton average in Q ooking Forward United plans to expand into the mining sector by commencing gold production by Currently, there are eight prospective areas in Sumbawa, of which the Company has obtained one exploration permit for an area that is expected to supply 350,000 ounces of gold reserves. ext catalyst: The Company s Q earnings release is expected on February ocal Code: IUTR Bloomberg Symbol: UTR:IJ ISI: ID

104 United Tractors IDOSI UITD TRCTORS (UTR.ID) IDX MCHIRY-COSTR/MIIG 3.73B 1.53B SHRS RIGS BUSISS: MGMT owns X-DIV SC PT UITD TRCTORS TBK IS IDOSI-BSD COMPY SRVICS, ICUDIG MI DSIG, XPORTIO, XTRCTIO, PRIC = PRIMRIY GGD I TH PROVISIO OF MIIG COTRCTIG. HUIG, BRGIG D TRSPORTIG COMMODITIS. TH CO 10 X PS MJOR BUSISS CTIVITIS OF TH COMPY D ITS MIIG SGMT FOCUSS O TH MIIG D SIG OF CO. SUBSIDIRIS R CTGORIZD ITO FOUR SGMTS: TH COSTRUCTIO IDUSTRY SGMT PROVIDS COSTRUCTIO COSTRUCTIO MCHIRY, MIIG COTRCTIG, CO MIIG D SRVICS, SUCH S FOUDTIO WORKS, STRUCTUR WORKS, COSTRUCTIO IDUSTRY. TH COSTRUCTIO MCHIRY SGMT DMOITIO D IFRSTRUCTUR DVOPMT. TH COMPY'S ICUDS TH S D SIG OF HVY QUIPMT, S W S SUBSIDIRIS ICUD PT PMPRSD USTR, PT KRY FTR-SS SRVICS. TH MIIG COTRCTIG SGMT SUPR PRKS, PT UITD TRCTORS PDU GIRIG, PT BI PROVIDS MIIG COCSSIO HODRS WITH VRIOUS MIIG PRTIW D UT HVY IDUSTRY (S) PT TD U W K Y PS IDR (DC.) CF/SHR IDR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IDR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IDR T SS IDR57.90T IDOSI PS RTIG 74 IC 1973 IDR39200(OH -3%) Down 3.03% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(59 STBIITY) -1% %(45 STBIITY) -2% COMPOSIT RTIG IVT T/O 4x DBT % %: 3%: 0.21% %: 34%: 24% TX RT : : BCKOG X '16 BK.V R&D 535(1.7%) DIV GR RT+1% (15) DIV BT 1.98(23) PH 0.07(0.03) Global Focus M IDR JKCOMP % B VOUM 30 M 20 M SP Q -43% BOW ST. PS (IDR) % CHG SS(BI IDR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 10.6% +15.3% /452M DC % % 11.3% +16.2% /447M MR % % 12.5% +17.7% /474M JU % % 11.2% +18.4% /480M SP % % 4.8% +15.3% /473M DC % % 12.9% +14.9% % % 14.4% +14.9% /467M MR /488M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Capital quipment: Machinery-Constr/Mining % % 16.2% +16.2% /464M SP % +10.3% /462M DC % % 6.8% +7.6% /471M MR % % 9.5% +6.0% /463M JU % % 11.2% +3.5% /478M SP #+209% % 16.1% +12.7% /472M DC % % 11.0% +14.2% /551M MR % % 12.2% +16.2% /566M JU 17 FOR IFORMTIO, C OR VISIT % % 13.2% +18.2% /543M SP M 7M DC Q % '13-18 P..'S OW OW HI ST 541/515M DC 17 9X 18X 50X MR 18 TM DTGRPHS 2/2/2018

105

106 irtac International Gp. TIW IRTC ITRTIO GP. (IG.TW) TI MCHIRY-G IDUSTRI M M SHRS RIGS BUSISS: MGMT owns SC IRTC ITRTIO GROUP IS PRICIPY GGD I TH DDITIO, TH COMPY PROVIDS IR SOURC PROCSSIG UITS, PRIC = MUFCTUR D DISTRIBUTIO OF PUMTIC COTRO COMPOTS ICUDIG BIGMIY COMPOTS, PRSSUR RGUTIG FITRS, 10 X PS D PUMTIC CTUTORS. TH COMPY'S CTUTORS ICUD UTOMTIC DRIRS, PRSSUR MTRS, PRSSUR RGUTIG STDRD CYIDRS, MII CYIDRS, COMPCT CYIDRS D VVS, OI FDRS D OTHRS, S W S PUMTIC CYIDR CCSSORIS. ITS COTRO COMPOTS ICUD FOW UXIIRY COMPOTS, ICUDIG OI BUFFRS D POY 170 COTRO VVS, SOOID VVS, PUMTIC COTRO VVS URTH (PU) HOUSS. D MU/MCHICY CTUTD VVS, MOG OTHRS. I U W K Y PS TWD (DC.) CF/SHR TWD PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TWD) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP TWD 90.73BI. SS TWD7.84 BI PS RTIG 97TWD480.00(OH -10%) Up 67.83% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(18 STBIITY) +19% %(19 STBIITY) +16% COMPOSIT RTIG IVT T/O PRIC SC x DBT % %: 26%: 19% 25%: 25%: 29% TX RT : : BCKOG X '16 BK.V R&D 2.8% DIV 5.65(1.2%) DIV GR RT-1% (21) BT 1.13(6) PH 0.16(0.07) TIWGHT % Global Focus M TWD B /100 VOUM 6M 4M SP Q -47% BOW ST. PS (TWD) % CHG SS(BI TWD) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 23.4% % % % 20.8% % % % 26.0% % % % 17.7% % % % 19.4% +97.7% % % 13.2% +86.0% % % 22.7% +83.9% % % 11.2% +77.9% % % 14.1% +68.8% % % 19.4% +74.3% % % 20.7% +76.4% / / / / / / / / / / /38666 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Capital quipment: Machinery-Gen Industrial % % 19.6% +85.6% /44798 SP % % 12.5% +85.3% % % 22.3% +86.3% % % 27.4% % / / / /55995 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 23.2% % 2M 900 K DC Q % '13-18 P..'S OW OW HI ST DC 17 14X 32X 32X MR 18 TM DTGRPHS 2/2/2018

107 MYSI WƌĞƐƐ DĞƚĂů WD d Dz &K ϮϬ dž Press Metal luminium Holdings hz^ D > z^/ džđś Dz>ϴϴϲϵKKϬϬϵ нϲϭ ϯ ϯϯϲϯ Ϯϭϴϴ W^ ZĂŶŬ ϵϵ ƉƌĞƐƐŵĞƚĂů ĐŽŵ DĞƚĂů WƌŽĐ Θ &ĂďƌŝĐĂƟŽŶ DŬƚ ĂƉ DzZϲ ϰϳ ^ĂůĞƐ DzZϱ ϵϭ <ůăŷő D > z^/ /ŶĐ ϭϵθϲ ^ŚĂƌĞƐ ϯ ϲϵθ &ůžăƚ Ϯ ϭθϯ W^ ƵĞ Ϯ ϮϬ ϮϬϭϳĞ K, Ͳϯй D'Dd ŽǁŶƐ WZ ^^ D d > Z, /^ D > z^/ Ͳ ^ KDW z t,/, /^ ' ' / d, D h& dhz/' dz /' K& >hd/hd WZK h d^ /s ^dd d,k> /' d/s/d/ ^ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ Ϭ ϮϮ Ϭ Ϭϭ Ϭ Ϭϭ Ϭ Ϭϰ Ϭ Ϭϰ Ϭ Ϭϳ Ϭ Ϭϭ Ϭ Ϭϳ Ϭ Ϭϰ Ϭ ϭϯ ϮϬϬйź W^ DzZ Ϭ ϭϲ ϯϯйź ^, &>Kt ^,Z DzZ Ϭ ϭϭ Ϭ Ϭϱ Ϭ Ϭϱ Ϭ Ϭϲ Ϭ ϭϭ Ϭ Ϭϴ Ϭ ϭϭ Ϭ ϮϮ Ϭ ϭϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϯϯй ϯй ϯй ϲй ϲй ϰй Ϭй ϳй ϱй ϮϬϭϰͲϭϲ ϭϭθй ϴϭ ^ƚăďŝůŝƚljͿ Ϯϭй Z dhz K Yh/dz й ϵϵй Ϯй ϰй ϭϭй ϭϭй ϭϳй ϭй ϭϰй ϳй ϮϬϭϮͲϭϲ ϴй ϵϵ ^ƚăďŝůŝƚljͿ ϮϮй ^ > ^ й, ' ϭϭϭй Ͳϭϯй ͲϮй ϱϭй ϯϰй ϱй ϯϭй ϯϭй ϲй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ DzZ ϭ ϯϯθ ϭ ϭϲϭ ϭ ϭϯϯ ϭ ϲϵϵ Ϯ Ϯϲϵ Ϯ ϯθϰ ϯ ϭϯϯ ϰ Ϭϵϭ ϰ ϯϯϭ /s d K ϰ ϳdž ϰϵ t <>z Žǀ ϭϭ Žǀ ϭθ Žǀ Ϯϱ ĞĐ ϬϮ ĞĐ Ϭϵ ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϱ d й ϮϬϭϯͲϭϱ ϴϲй ϱϱй ϭϭϯй d 'Z W, Z d/' ϱϵ ϴϬ ϳϴ ϳϳ ϳϳ ϳϳ ϳϳ ϳϬ ϳϳ d y Z d ϮϬϭϯͲϭϱ ϭϯй ϯϭй s' />z sk> ϬϬϬͿ ϰ ϴϵϲ ϱ ϰϯϯ ϱ ϰϭϰ ϰ ϲϳϭ ϰ ϲθϲ ϰ ϲϵϯ ϰ ϵϯθ ϰ ϳϬϬ ϱ ϬϲϮ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd Ϭ ϴ ϭ Ϯ ϭ Ϯ ϭ ϲ ϭ ϱ ϭ ϲ ϭ ϱ ϭ ϰ ϭ ϲ Z Θ < s > Ϯ ϵϭdž Ζϭϱ hd /^d Z d/' Ͳϳ Ϯϳ Ϯϲ Ϯϲ ϭθ Ϯϭ ϭϲ Ͳϳ ϮϮ /s DzZ Ϭ Ϭϯϳ Ϯ ϭйͿ /s 'Z ZdнϴϮй ϲϯͿ Z > d/s ^dz 'd, ϭ ϵϳ ϵϳ ϵϳ ϵϳ ϵϳ ϵϲ ϵϲ ϵϲ d Ϭ ϴϯ ϰϲ ϬϬͿ >W, Ϭ Ϯϳ ͲϬ ϭϳͿ 'ZKhW Z < ϭ Ϯ ϭ Ϯ Ϯ ϭ Ϯ ϵϯ ϯ >K' &ŝdžğěͿ WZ/ ϯ ϰ ϯ Breaks out to new highs Strong estimates Ϯ ϲ Ϯ ϰ Ϯ Ϯ ϭ ϵ ϭ ϳϱϭ ϳ Strong growth rates DzZ нϭ ϭϲϭ ϭ ϱ Best PS rank ϵϲ нϭϭ Ϭϲй ϭ ϯ ϭ Ϯ ϭ ϭ ϭ Ϭ ϵ Ϭ ϴ Source: Corporate Website Ϭ ϳ Ϭ ϲ Ϭ ϱ Ϭ ϰϲ 40-Week M R/S line at highs with strong R/S rating Ϭ ϰϯ Ϭ ϯθ Ϭ ϯϰ Press Metal (PMT.MY) is the largest integrated aluminum producer in Southeast sia, in terms of capacity. The Company continues to grow through capacity expansion. Ϭ ϯ 10-Week M Ϭ Ϯϲ Ϭ Ϯϰ Ϭ ϮϮ Ϭ ϭϵ Ϭ ϭϳ Ϭ ϭϱ Solid PS and revenue growth Ϭ ϭϯ Ϭ ϭϯ Company Overview Press Metal is one of the leading manufacturers and traders of aluminum products with a smelting capacity of 760,000 tons, and an extrusion capacity of 160,000 tons per annum. The Company s Chinese subsidiary, Press Metal International td, is one of the largest exporters of aluminum products in China, with a production capacity of 120,000 tons per annum. O eil Methodology The stock is in an uptrend and is trading constructively above its 50- and 200-DM. Currently, it is extended from its last breakout. PMT displays top-notch technical ratings, with an RS Rating of 97, /D Rating of B+, and Up/Down Volume ratio of 1.8. During Q3 FY 2017, revenue grew 22.4% y/y to RMB 2.13B. Growth in top-line numbers was driven by high metal prices and favorable currency translation effects. The Company s top-line growth translated to strong bottomline growth. Operating profits for the quarter increased to RMB 255M, up 26% y/y, while net profit increased 35.5% y/y to RMB 191M. Management approved a third-interim single-tier dividend of 1.5 sen per ordinary share, totaling approximately RM 56.2M, for the financial year ending December 31. The Company s PS Rank is impressive at 93, owing to its strong PS growth over the last few quarters. >/ sk>hd ϭϰϭd ϭϭϭd нϳϳй ϲϭd ϯϭ ϳD ^ĞƉ ϭϭ &/ / >^ Ϭ Ϭϭ W^ DzZͿ ĞĐ ϭϭ Ϭ ϬϮ DĂƌ ϭϯ Ϭ Ϭϭ :ƵŶ ϭϯ Ϭ Ϭϭ ^ĞƉ ϭϯ Ϭ Ϭϱ ĞĐ ϭϯ Ϭ ϬϬ DĂƌ ϭϯ Ϭ Ϭϭ :ƵŶ ϭϯ Ϭ Ϭϭ ^ĞƉ ϭϯ Ϭ ϬϬ Ϭй нϭϭϭй W^ й, ' ϱθϭ ϳ ϲϯϯ Ϯ ^ > ^ D/> DzZͿ нϯϰй нϱϱй ^ > ^ й, ' Ϭй Ϭй нϰϭϭй ͲϭϬϬй Ϭй Ϭй ͲϭϬϬй ϱϯϱ ϭ нϭϭй ϱϯϯ ϰ ͲϭϮй ϲϭϵ ϭ нϱй ϳϮϳ ϴ нϭϳй ϳϮϰ Ϯ нϯθй ϳϵϱ ϯ нϱϯй ϳϵϰ ϱ нϯϭй W^ й ^hzwz/^ ϮϬ &h ^ ϭθ ϰϵ ϴϯϲ ϱϯϯ ϱϰd ^, Z ^, > z &h ^ ĞĐ ϭϯ ͲϬ Ϭϭ ϴϬϳ ϲ нϭϭй DĂƌ ϭϰ Ϭ Ϭϭ :ƵŶ ϭϰ Ϭ ϬϮ Ϭй нϭϭϭй ϴϵϳ ϭ нϯϰй ϭ ϬϬϬ Ϯ нϯϲй ^ĞƉ ϭϰ Ϭ Ϭϯ ϭ ϬϮϴ ϳ нϯϵй ĞĐ ϭϰ Ϭ Ϭϭ DĂƌ ϭϱ Ϭ Ϭϭ :ƵŶ ϭϱ Ϭ Ϭϭ ^ĞƉ ϭϱ Ϭ Ϭϭ ĞĐ ϭϱ Ϭ Ϭϭ DĂƌ ϭϲ Ϭ Ϭϯ :ƵŶ ϭϲ Ϭ Ϭϰ ^ĞƉ ϭϲ Ϭ Ϭϯ нϯϭϭй Ϭй ͲϱϬй Ͳϲϳй Ϭй нϯϭϭй нϯϭϭй нϯϭϭй ϭ ϭϲϱ Ϭ нϰϰй ϭ Ϭϱϱ ϵ нϭθй ϵϰϳ ϯ Ͳϱй ϭ Ϭϭϲ ϯ Ͳϭй ϭ ϯϭϭ ϴ нϭϯй ϭ ϮϵϬ Ϭ нϯϯй ϭ ϱθϱ ϴ нϲϳй ϭ ϳϯϲ ϲ нϳϭй ĞĐ ϭϲ W ϭϲ ϮϬϭϳ Ɛƚ ϭϭ Ϭ ϱͳljƌ,ŝőś ϯϭ Ϭ ϱͳljƌ >Žǁ ϭ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϱdž ϮϬ ϱϲd ϭϵ ϰϱd ϭϵ ϰϳd Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭϱ ϯϲd ϭϱ ϯϳd ϭϱ ϯϯd ϭθ ϯθd ϭθ ϯθd ϭθ ϯθd ϯϲ ϳϯD ϰϲ ϭϭϰd ϱϰ ϭϯϳd ϱϱ ϭϰϰd ϰϵ ϵϯd ϰϯ ϭϭϵd ϰϲ ϭϯϯd ϰϳ ϭϯϭd ϱϭ ϭϯϯd ϱϲ ϭϯϳd WƌĞƐƐ DĞƚĂů WD d DzͿ tğğŭůlj ĂƐ ŽĨ dśƶ :ĂŶƵĂƌLJ Ϭϱ ϮϬϭϳ :ĂŶƵĂƌLJ Ϭϱ ϮϬϭϳ Growth Drivers In June 2016, PMT completed the Phase 3 expansion of its smelter plant in Samalaju, Sarawak. The expansion increased the Company s annual capacity by 35-40% compared with last year. With the consolidation of its smelting plant expansion, the Company aims to improve plant efficiency and profit margins and offer more value-added products. In September 2016, the Company entered into a joint venture agreement with Sunstone Development Co. td to establish a pre-baked carbon anode manufacturing facility in China. This investment is synergistic in terms of the backward vertical integration of the Company. It will secure a stable raw material supply for PMT and streamline its operating margins from 2018 onward. ooking Forward Going forward, the Company expects the price of aluminum to increase at the cost of production cuts being announced in China. s a result, China s smelting production is expected to slow down and the global supply and demand will tilt toward a deficit, supporting long-term aluminum price performance. ext Catalyst: The Company s Q results will be reported on February 26, ocal Code: 8869 Bloomberg Symbol: PMH:MK ISI: MY8869OO009

108 Press Metal luminium Holdings PRSS MT UMIIUM HO (PMT.MY) MYSI KS MT PROC & FBRICTIO 3.86B 3.01B SHRS RIGS BUSISS: MGMT owns X-DIV SC PRSS MT UMIIUM HODIGS BHD FORMRY KOW S PRSS STISS ST PRODUCTS; COSTRUCTIO CTIVITIS; PRIC = MT BRHD. PRSS MT UMIIUM HODIGS BRHD IS TH MUFCTURIG OF MODS D DIS, D PROVISIO OF COMMO 10 X PS HODIG COMPY OF PRSS MT BRHD, MYSI-BSD WST WTR TRTMT PT TO TRT TOXIC WST. ITS COMPY GGD I TH MUFCTURIG D TRDIG OF UMIUM PRIMRY PRODUCTS ICUD UMIIUM IGOTS D UMIIUM PRODUCTS. TH COMPY'S SGMTS ICUD SMTIG D BITS. I DDITIO, TH COMPY OFFRS RG OF UMIUM XTRUSIO, ICUDIG MUFCTURIG D TRDIG OF SMTIG XTRUSIOS, ICUDIG FBRICTIO, FUOROCRBO, MI D XTRUSIO PRODUCTS, D TRDIG, ICUDIG MRKTIG OF FIISH, TUR ODIZD FIISH, POISHIG, POWDR COTIG 0.70 UMIUM PRODUCTS. TH COMPY, THROUGH ITS SUBSIDIRIS, IS D WOOD GRI. GGD I COTRCTIG D FBRICTIO OF UMIUM D U W K Y PS MYR (DC.) CF/SHR MYR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI MYR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT 12/13/2017 CP MYR 22.40BI. SS MYR8.27 BI MYSI PS RTIG 94 IC 1986 MYR5.80(OH 0%) Up % Since ddition 8 0KPCOMP STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(37 STBIITY) +32% %(99 STBIITY) +27% COMPOSIT RTIG IVT T/O 5.6x DBT % %: 103%: 81% TX RT %: 31%: 10% : : BCKOG X '16 BK.V R&D DIV 0.06(1.0%) DIV GR RT+77% (62) BT 0.49(1) PH 0.38(0.23) PRIC SC 7 6-4% Global Focus M MYR / / VOUM 40 M 9M 4M 2M PS (MYR) % CHG SS(BI MYR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % +1.1% /38150 DC % % 3.1% +1.3% /38194 MR % % 6.0% +3.7% /72523 JU % 8.0% +8.9% /104M SP #+200% % 3.8% +13.7% /137M DC % % 4.1% +13.6% /143M MR % % 2.6% +10.2% /91915 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Capital quipment: Metal Proc & Fabrication % % 2.9% +7.5% /109M SP % % 2.7% +6.9% /123M DC % % 7.3% +8.6% /121M MR % % 9.2% +14.2% /125M JU % % 7.1% +19.2% /150M SP % % 5.9% +23.3% /152M DC % % 7.3% +25.4% /171M MR % % 7.2% +25.1% /160M JU 17 FOR IFORMTIO, C OR VISIT % % 7.3% +28.1% '13-18 P..'S OW OW HI ST 107/151M SP 17 DC 17 4X 27X 30X MR 18 TM DTGRPHS 2/2/2018

109 IDI ĂůŵŝĂ ŚĂƌĂƚ / / W^ ϯϭ dž ϳϳ ϰϯ ϳϬ ϵϳ ϲϭ Ϯϵ ϱϰ ϴϰ ϰθ ϯϵ ϰϭ ϵϰ ϯθ ϳϭ ϯϱ ϰθ ϯϯ Ϯϲ ϯϯ ϭϲ Ϯϵ Ϭϯ Dalmia Bharat d/k > / / džđś / ϰϯϵ>ϭϭϭϭϵ нϵϭ ϭϭ Ϯϯϰϲ ϱϭϭϭ W^ ZĂŶŬ ϱϰ ůěőͳ ĞŵĞŶƚ ŽŶĐƌƚ Ő DŬƚ ĂƉ /Zϭϴϯ ϳϭ ^ĂůĞƐ /Zϳϭ ϯϱ ĚĂůŵŝĂďů ĐŽŵ D'Dd ŽǁŶƐ ^ŚĂƌĞƐ ϴϵD &ůžăƚ ϰϭd Strong estimates >D/, Z d >/D/d /^ / / Ͳ ^,K> /' KDW z d, KDW z KW Z d ^ ^ D d D h& dhz/' KDW z d, KDW zζ^ ^ 'D d^ / >h Kt D h& dhz D d Z &Z dkzz D ' D d ^ Zs/ ^ Kd, Z^ DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ Ϭ ϰϲ ϯ ϵϵ ϲ ϭϯ ϭϳ ϲϳ Ϯϰ Ϯϴ Ͳϭ Ϭϰ Ϭ ϯθ Ϯϯ ϯϲ ϯϯ ϱϭ ϯϵйź ϱϵ Ϭϰ ϴϮйź W^ /Z ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z /Z Ϭ ϯϱ Ͳϰ ϯϳ ϯϰ Ϭϲ ϰϯ ϳϵ ϰϰ Ϯϭ ϳ ϲϱ Ϭ ϴϯ ϵϭ ϲϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϰϱй WZ d y D Z'/ й ϰй ϭϯй ϭϭй Ͳϭй Ͳϭй ϵй ϮϬϭϰͲϭϲ ϱϱϲй ϵϵ ^ƚăďŝůŝƚljͿ Ϯϳй Z dhz K Yh/dz й ϭϭϯй ϰй ϱй ϲй Ϭй Ϭй ϱй ϮϬϭϮͲϭϲ ϰϯй ϳϴ ^ƚăďŝůŝƚljͿ ^ > ^ й, ' Ϭй Ϭй ϯϯй ϮϬй ϳй ϭϲй ϴϰй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z Ϭ Ϭ ϭϳ< Ϯϯ< Ϯϴ< ϯϭ< ϯϱ< ϲϰ< /s d K ϲ Ϯdž ϲϯ t <>z &Ğď ϭϭ &Ğď ϭϳ &Ğď Ϯϰ DĂƌ Ϭϯ DĂƌ ϭϭ DĂƌ ϭϳ DĂƌ Ϯϰ DĂƌ ϯϭ Ɖƌ Ϭϱ d й ϮϬϭϰͲϭϲ ϭϭϯй ϮϬϵй ϭϳϲй d 'Z W, Z d/' ϲϳ ϲϰ ϲϰ ϲϰ ϲϰ ϲϯ ϲϰ ϲϰ ϲϱ d y Z d ϮϬϭϰͲϭϲ ϱϯй s' />z sk> ϬϬϬͿ ϲϱ ϲϲ ϲϱ ϲϳ ϲϰ ϲϯ ϲϯ ϱθ ϱϲ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd Ϯ ϰ Ϯ Ϯ Ϯ ϯ Ϯ Ϯ Ϯ ϱ Ϯ ϯ Ϯ ϱ Ϯ ϰ Ϯ ϴ Z Θ < s > ϰ Ϭϯdž Ζϭϲ hd /^d Z d/' ϱϯ ϱϯ ϱϯ ϰθ ϰϱ ϰθ ϰθ ϱϱ ϱϵ /s /Z Ϯ ϬϬ Ϭ ϭйͿ /s 'Z Zdнϯй ϭϳͿ Z > d/s ^dz 'd, ϴϵ ϵϭ ϵϭ ϴϳ ϴϳ ϴϳ ϴϲ ϴϲ ϴϱ d ϭ ϱϯ Ϯϯ ϬϬͿ >W, Ϭ Ϯϯ Ϭ ϭϭͿ 'ZKhW Z < ϵϯ ϭϭϯ ϭϭϰ ϭϭϲ ϭϭϯ ϭϭϲ ϭϭθ ϭϭϰ ϭϭϯ ϮϬϭϲ DW>Kz ^ ϯϭϭ ϬйͿ Ϯϱ ϴϭ W^ ƵĞ ŝŷ ϰϭ ĂLJƐ ĞͿ Breaks out on triple the average daily volume Ϯ Ϭϲϰ Company Overview DB has an installed cement capacity of 25M tons (MT). It sells cement under the Dalmia and Konark brands. The Company holds a 75%stake in OC India td., a major cement player in the eastern region. DB has a total of 11 plants in eight states across India. It also has a power capacity of 186 MW. Q2 FY 2018 revenues by segment: cement, 90%; refractory, 5%; management services, 4%; other, 1%. O eil Methodology The stock has displayed strong momentum in the past two weeks before its earnings update and broke out of a five-week flat base on healthy volume. fter the results, the stock pulled back to the buy range and remains actionable. The stock s technical ratings were slightly impacted by its Q2 FY 2018 earnings update. It has an RS Rating of 78, an /D Rating of, and an Up/Down Volume ratio of 1.3. In Q2 FY 2018, revenues adjusted for GST increased 7% y/y to IR 18.34B, driven by a 6% increase in sales volume. The Company reported BITD of IR 4.4B, up 5% y/y, while PS increased 233% to IR Consensus estimates have FY 2018 and FY 2019 PS growing 90% and 55%, y/y, respectively. The expectation of strong earnings growth should improve its PS Rank, which currently stands at 66. During the quarter, the Company repaid debt of IR 5.1B, reducing its cost of debt from 8.3% to 8.1% on q/q basis. WZ/ /Z ϭϵϭϭ нϵϵ Ϯϱ нϱ Ϭϱй ϭϳϭϭ ϭϱϭϭ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ϭϭϭϭ ϵϭϭ ϴϬϬ Strong demand for stock ϴϱ н ϳϬϬ ϭϵ ϯϱ ϲϭϭ ϭϲ ϭϯ ϭϰ ϴϰ ϭϯ ϱϱ ϱϭϭ ϰϲϭ ϰϯϭ R/S line near a new high with best /D rating ϭϯ Ϯϲ ϭϭ ϵϳ Dalmia Bharat (DI.I) is the fourth-largest cement group in India by capacity. The Company continues to benefit from the launch of premium brands and increasing demand for cement in the country. >K' &ŝdžğěͿ ϮϰϬϬ ϮϮϬϬ ϮϮ ϱθ Source: Corporate Website K, ͲϮй ϯθϭ ϯϰϭ ϵ ϲθ ϯϭϭ ϴ ϯϵ ϳ ϳϰ ϳ ϭϭ ϮϲϬ ϮϰϬ ϮϮϬ ϲ ϭϯ ϭϵϭ ϱ ϰθ ϭϳϭ ϰ ϴϰ ϭϱϭ ϰ ϭϵ ϯ ϴϳ ϯ ϱϱ ϭϯϭ ϭϯϭ ϭϭϭ ϯ Ϯϯ ϭϭϭ Increasing number of shares held by funds Ϯ ϵϭ Ϯ ϱθ ϵϭ ϴϬ >K' sk>hd ϱϭϭ< ϮϬϳ ϴ< ϭϭϭ< нϯϭй ϮϬ< ϭ&/ / >^ DĂƌ ϭϯ :ƵŶ ϭϯ ϲ W^ /ZͿ ϭ ϯϭ ϴ ϵϭ й W^ й, ' Ͳϴϱй нθϲй ϵ^ > ^ D/> /ZͿ ϲ ϱθϲ Ϯ ϲ ϰϱϰ ϵ й^ > ^ й, ' нϯϭй нϯϯй W^ й ^hzwz/^ ϴ&h ^ ϴ ϴ Ϭ^, Z ^, > z &h ^ ϯϯϯ ϰϭϭ ϯϱϭ ϲϱϭ ^ĞƉ ϭϯ ϴ ϱϱ нϯϵй ĞĐ ϭϯ Ϯ Ϯϱ Ͳϱϱй DĂƌ ϭϯ ϰ ϱϳ нϯϱϯй :ƵŶ ϭϯ ϰ ϯϯ Ͳϱϭй ^ĞƉ ϭϯ Ͳϯ Ϯϭ Ͳϭϯϴй ĞĐ ϭϯ Ͳϭ ϱϯ Ͳϭϲϴй DĂƌ ϭϰ ͲϬ ϲϰ Ͳϭϭϰй :ƵŶ ϭϰ Ͳϯ ϯϳ Ͳϭϳϴй ϲ ϳϮϴ ϲ ϲ ϴϴϵ ϲ ϳ ϴϯϯ ϭ ϳ ϬϲϬ ϴ ϳ ϯϯθ Ϯ ϳ ϬϬϭ ϵ ϴ ϬϬϴ Ϭ ϳ ϬϰϮ ϭ нϭϯй нϯϲй нϭϵй нϵй ϭϰ ϱϵϳ Ϭϭϵ ϭϲ ϲϱϭ ϭϳϭ ϭϯ ϲϯθ ϬϭϬ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭϯ ϲϯθ ϬϭϬ ^ĞƉ ϭϰ ͲϮ Ϭϵ нϯϱй ĞĐ ϭϰ Ϭ Ϭϭ нϭϭϭй DĂƌ ϭϱ ϱ ϴϮ нϭ<й :ƵŶ ϭϱ ϲ ϱϭ нϯϵϯй ^ĞƉ ϭϱ ϭ ϱϯ нϭϳϯй ĞĐ ϭϱ ϯ ϲθ нϯϳ<й DĂƌ ϭϲ ϭϰ Ϭϲ нϭϰϯй :ƵŶ ϭϲ ϭϭ ϱθ нϲϯй ^ĞƉ ϭϲ ϯ ϱϭ нϭϯϵй ĞĐ ϭϲ ϰ ϬϮ нϵй ϳ Ϯϭϲ ϰ ϳ ϵϰϭ ϱ ϭϯ ϭϰθ ϲ ϭϲ Ϭϵϯ ϭ ϭϳ ϳϳϰ ϳ ϭϳ Ϭϱϯ Ϭ ϭϳ ϯϵϯ Ϭ нϭϭй нϭϵй нϭϳй ϭϰ ϯϰϵ ϳ ϭϰ ϵϯϳ ϲ ϭϵ ϭϯϯ ϲ нϵй нϯй нϯй Ϭй ͲϮй нϭϯй нϲϰй нϭϯϵй нϵϵй нθθй нϰϲй нϰϱ Ϭй ͲϮϵ ϲй Ͳϯϲ ϴй ͲϮϴ ϴй ͲϮϵϭ ϰй Ͳϵϵ Ϯй Ͳϯϵ Ϯй Ͳϭϱ ϴй Ͳϰ Ϯй ϭϯ ϲϰϯ ϰϰϳ DĂƌ ϭϳ ϵ ϬϮĞ ͲϯϲйĞ Ͳϯϯ ϲй ϭϯ ϭϯ ϭϳ Ϯϰ Ϯϲ Ϯϴ ϯϭ ϯϵ ϰϱ ϰϱ ϰϲ ϱϱϭ ϯϭϯ ϯ ϲϳϭ ϭϱϭ ϰ ϯϵϰ ϳϭϳ ϯ ϯθϯ ϱϯϳ ϰ ϲθϱ Ϯϳϴ Ϯ ϳϭϲ ϳϯϴ ϰ ϭϯϯ ϲϭϵ ϰ ϱθθ ϳϭϳ ϯ ϵϭϭ ϲϯϱ ϰ ϭϭθ ϳϲϴ ϰ Ϭϵϭ ϱϲϭ :ƵŶ ϭϳ ϭϵ ϭϯğ нθϭйğ W ϲϭ ϮϬϭϴ Ɛƚ ϯϱ Ϭ ϱͳljƌ,ŝőś ϭ< ϱͳljƌ >Žǁ ϱ Ϭ ǀƐ /ŶĚ ǀŐ Ϯ ϱdž ϳϳ ϵϯ ϵϭ ϰ ϵϵϰ ϳϴϰ ϱ ϭϭϲ ϳϵϴ ϱ ϰϱϳ Ϯϳϯ ĂůŵŝĂ ŚĂƌĂƚ / /Ϳ tğğŭůlj ĂƐ ŽĨ tğě Ɖƌŝů Ϭϱ ϮϬϭϳ Ɖƌŝů Ϭϱ ϮϬϭϳ Growth Drivers DB recently launched Dalmia DSP at a 10% premium to its flagship brands. It contributes about 10% to overall retail sales. The Company has a well-balanced capacity in eastern (52%) and southern India (48%). Due to diversified locational advantages, with plants located close to raw materials sources and end markets, the Company keeps its freight and transport costs low, giving it an edge over its competitors. The Company is a leading cement player, with market shares of about 7.5%, 13.5%, and 20% and capacities of 12.1 MT, 9.3MT, and 3.6MT in the southern, eastern, and north eastern parts of India, respectively. ooking Forward Demand for cement is expected to grow 7 8% per annum, compared with the current 4.5% in southern India. The expectation of strong demand is mainly driven by government s push for infrastructure development and affordable housing. The Company s volume is expected to have a CGR of 9.75%, reaching MT by FY The next catalyst is the Company s Q3 FY 2018 results, expected to be announced on February 1, ocal Code: I:DMIBH Bloomberg Symbol: DB:I ISI: I

110 Dalmia Bharat IDI DMI BHRT (DI.I) S BDG-CMT/COCRT/G 88.97M 48.93M SHRS RIGS BUSISS: MGMT owns X-DIV SC DMI BHRT IMITD IS IDI-BSD HODIG COMPY. TH 5.5-MGWTT CPCITY SOR POWR PT T MDIIPUR, WST PRIC = COMPY OPRTS S CMT MUFCTURIG COMPY. TH BG. TH COMPY SO OWS THRM POWR PTS, 10 X PS COMPY'S SGMTS ICUD OW MUFCTURD CMT, CO-GRTIO PTS D WID FRMS. TH COMPY HS RFRCTORY, MGMT SRVICS D OTHRS. TH COMPY'S MUFCTURIG FCIITIS I PPROXIMTY 11 OCTIOS WITH BRDS ICUD DMI DSP, DMI, DMI UTR, DMI ISTD CPCITY OF 25 MIIO TOS PR UM. TH SUPR ROOF, VJRM D KORK. TH COMPY MUFCTURS COMPY'S SUBSIDIRIS ICUD DMI POWR IMITD, DWTH 340 CMT FOR US I IIG OF OI WS, IRPORT STRIPS D CMT HODIGS IMITD, KIK IVSTMT IMITD D 320 RIWY SPRS, MOG OTHRS. TH COMPY OWS DMI CMT (BHRT) IMITD STIMT 2019 STIMT U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK % % RIGS GROWTH RT SS GR RT %(99 STBIITY) +41% % COMPOSIT RTIG IVT T/O FOT MKT CP IR BI. SS IR78.05 BI PS RTIG 67 IR2829(OH -15%) 0IBOM500 Up 37.02% Since ddition PRIC SC Global Focus M IR % x DBT % %: 152%: 117% : 48%: 39% TX RT : : BCKOG X '17 BK.V R&D 0.1% 2.2(0.1%) DIV GR RT+4% (14) DIV BT 1.10(16) PH 0.07(0.04) C VOUM 400 K 200 K 90 K SP Q -56% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % % % 0.01 #+101% % RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /550 DC #+1009% % 3.6% +0.0% 6.47 #+293% % 3.3% /4124 JU 15 11/ / / / /2717 MR 14 JU 14 SP 14 DC 14 MR 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Basic Material: Bldg-Cement/Concrt/g 1.52 #+173% % 0.9% +3.4% /4589 SP % % 2.0% /3912 DC % % 5.0% +4.8% /4109 MR % % 5.3% /4087 JU % % 1.8% +6.1% /5099 SP % % 2.1% /5822 DC % % 8.4% +6.7% /6384 MR % % 8.0% /9729 JU 17 FOR IFORMTIO, C OR VISIT % % 5.7% +9.2% DC Q % '13-18 P..'S OW 5X OW 58X HI 999X ST 143/13398 SP K DC 17 MR 18 TM DTGRPHS 2/2/2018

111 CHI Sociedad Quimica Y Minera De Chile B Pref. ^ŽĐŝĞĚĂĚ YƵŝŵŝĐĂ z DŝŶĞƌĂ Ğ ŚŝůĞ WƌĞĨ ^Y > &K ϮϬ dž нϱϲ Ϯ ϮϰϮϱϮϬϬϬ W^ ZĂŶŬ ϲϯ ^ d/ 'K džđś >WϴϳϭϲyϭϬϴϮ ƐƋŵ ĐŽŵ y /s ϭϯ ϭϱ ϮϬϭϲ ŚĞŵŝĐĂůƐͲ ŐƌŝĐƵůƚƵƌĂů,/> /ŶĐ ϭϵθϯ DŬƚ ĂƉ >WϮ ϰϰd ^ĂůĞƐ >Wϭ ϮϮd ^ŚĂƌĞƐ ϭϯϭd &ůžăƚ ϳϴD W^ ƵĞ ϯ ϭ ϮϬϭϳĞ K, Ͳϭй D'Dd ŽǁŶƐ ^K / Yh/D/ z D/ Z,/> ^ ^YDͿ /^ WZK h Z K& WKd ^^/hd /dz d /K / d, KDW z WZK h ^ ^W / >dz W> d hdz/ d^ /K / Z/s d/s ^ >/d,/hd /d^ Z/s d/s ^ WKd ^^/hd,>kz/ WKd ^^/hd ^h>& d Zd / / h^dz/ >, D/ >^ ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϯϱϰ ϭϳ ϵθϵ ϲϰ ϳϭϬ ϭϭ ϳϰϬ ϳϳ ϵϵϲ ϵϯ ϭ ϭϵϳ ϯϯ ϴϴϳ ϯϵ ϲϰϯ ϰϳ ϱϯϯ ϴϰ ϱϳϲ Ϯϵ ϴйŸ ϲϭϰ Ϯϳ ϳйŸ W^ >W ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z >W ϳϵϳ ϵϲ Ϯ< ϭ< ϭ< Ϯ< Ϯ< ϭ< ϭ< ϭ< ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯй WZ d y D Z'/ й ϮϬй ϯϱй Ϯϵй Ϯϲй ϯϯй ϯϱй Ϯϳй ϮϬй ϭϳй ϮϬϭϰͲϭϲ Ͳϭϲй ϭϭ ^ƚăďŝůŝƚljͿ Ϯй Z dhz K Yh/dz й ϭϲй ϯϰй ϮϮй Ϯϲй ϯϭй ϯϯй Ϯϭй ϭϯй ϵй ϮϬϭϮͲϭϲ Ͳϭϲй ϭϱ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϭϯй ϰϵй Ͳϭϰй ϭϳй ϭϭй ϭϰй Ͳϳй ϰй Ͳϭй KDW Z d/' ^ > ^ D/>Ϳ >W ϲϭϵ< ϵϭϵ< ϳϵϱ< ϵϯϰ< ϭd ϭd ϭd ϭd ϭd /s d K ϭdž ϲ t <>z KĐƚ ϭϰ KĐƚ Ϯϭ KĐƚ Ϯϴ Žǀ Ϭϰ Žǀ ϭϭ Žǀ ϭθ Žǀ Ϯϱ ĞĐ ϬϮ ĞĐ Ϭϳ d й ϮϬϭϯͲϭϱ ϲϭй ϲϵй ϱϯй d 'Z W, Z d/' ϲϰ ϲθ ϲθ ϲϲ ϲϳ ϲϯ ϳϲ ϳϲ ϴϭ d y Z d ϮϬϭϯͲϭϱ Ϯϯй Ϯϴй Ϯϵй s' />z sk> ϬϬϬͿ ϭϳϱ ϭθϲ ϭθϭ ϭϳϰ ϮϬϴ ϭθϳ ϭθϯ ϭθϯ ϭθϲ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd Ϭ ϴ ϭ Ϭ ϭ ϭ ϭ Ϭ ϭ Ϯ ϭ Ϯ ϭ ϳ ϭ ϵ Ϯ Ϯ Z Θ < s > ϯ Ϯϲdž Ζϭϱ hd /^d Z d/' Ϯϯ ϯϵ ϯϱ Ϯϱ ϭϯ ϭϭ ϭϭ Ϯϭ ϯϵ /s >W ϭ Ϭϭ< ϱ ϭйͿ /s 'Z ZdͲϭϮй ϮϯͿ Z > d/s ^dz 'd, ϴϰ ϴϰ ϴϯ ϴϰ ϴϭ ϴϮ ϴϮ ϴϭ ϴϳ d ϭ ϮϮ ϲϭ ϬϬͿ >W, Ϭ ϭθ ͲϬ ϬϳͿ 'ZKhW Z < ϳ ϴ ϭϭ ϭϭ ϭϯ Ϯϴ Ϯϳ Ϯϲ Ϯϲ ϮϬϭϱ DW>Kz ^ ϰ ϮϱϬ ͲϭϭйͿ >K' &ŝdžğěͿ WZ/ ϵϭ< ϴϬ< ϳϬ< ϲϭ< Increase estimates ϱϭ< ϰϲ< ϰϯ< ϯθ< ϯϰ< ϯϭ< Ϯϲ< Ϯϰ< ϮϮ< ϮϬ Ϯϴϵ ϭϵ< Source: Corporate Website нϭ Ϯϳϵ ϭϳ< >W нϲ ϳϯй ϭϱ< ϴϳ Ͳ ϭϯ< ϭϯ< ϭϭ< ϭϭ< Sociedad Quimica Y Minera de Chile (SQB.C) is one of the largest global producers of lithium carbonate, iodine, and potassium. The Company continues to grow through capacity expansion. ϵϭϭϭ ϴϬϬϬ Rising R/S line with good /D rating ϲϭϭϭ ϱϭϭϭ ϰϲϭϭ ϰϯϭϭ ϯθϭϭ ccelerating earnings growth Company Overview SQM has a global presence in a variety of industries and applications through five segments: Specialty Plant utrition, Iodine and Derivatives, ithium and Derivatives, Industrial Chemicals, and Potassium. Q revenues by segment: Specialty Plant utrients, 34%; ithium, 31%; Potash, 21%; Iodine, 11%; Industrial Chemicals, 3%. ϳϬϬϬ Increasing sponsorship ϯϰϭϭ ϯϭϭϭ >/ sk>hd ϰ ϵd ϯ ϱd нϯϭй Ϯ ϭd ϲϳϳ ϭ< ϭϭ ^ĞƉ ϭϭ &/ / >^ ϲϳ W^ >WͿϮϲϬ ϰϯ :ƵŶ ϭϲ Ϯϭϭ ϴϳ ^ĞƉ ϭϲ ϭϰϭ ϰϰ ϱй нϰϯй нϱϭй нϯϳй нϱϲй нϭϱй Ͳϭϭй ͲϮй Ͳϰϱй ͲϭϮй Ͳϰϵй Ͳϯϳй ͲϮϱй Ͳϰϰй нϯϰй нϱй нϯϵй Ͳϳϳй Ͳϯϲй Ͳϭϰй нϯй W^ й, ' ϴ ϰ Ϯϳϰ ϵϲϲ Ϭ Ϯϳϯ ϱϱϲ ϴ Ϯϱϴ ϯϱϯ ϳ ϯϰϭ ϲϲϱ Ϭ Ϯϵϰ ϯϳθ ϵ Ϯϴϴ ϵϭϵ Ϯ Ϯϵϰ Ϭϱϱ Ϯ Ϯϳϵ Ϭϰϯ ϴ Ϯϲϱ ϴϱϰ ϭ Ϯϱϳ ϳϬϭ ϲ Ϯϵϲ ϳϬϲ ϳ ϮϵϬ ϭϲϳ Ϯ ϮϳϮ ϳϲϯ Ϯ ϮϵϮ ϱϭϵ ϱ ϮϰϮ ϭϵϵ ϰ ϯϭϭ ϳϳϱ ϴ ϯϭϳ Ϭϰϴ ϯ Ϯϴϵ ϲϳθ ϵ ϮϳϮ ϭϭϰ ϲ ϯϯθ ϲϭϭ Ϭ ^ > ^ D/> >WͿ нϯϭϭй ϮϬϭϳ Ɛƚ ϯϯ ϯϯϯ ϴϬϲ ϲ ϱͳljƌ,ŝőś ϯϯ ϭй нϭϵй ^ > ^ й, ' W^ й ^hzwz/^ ϱϯ ϱϱ &h ^ ĞĐ ϭϭ ϮϵϬ Ϯϰ DĂƌ ϭϯ Ϯϳϴ Ϭϱ :ƵŶ ϭϯ ϯϲϱ ϭϱ ^ĞƉ ϭϯ ϯϭϭ Ϯϵ ĞĐ ϭϯ Ϯϱϴ ϵϰ DĂƌ ϭϯ ϮϳϮ Ϭϯ :ƵŶ ϭϯ ϮϬϭ Ϭϴ ^ĞƉ ϭϯ Ϯϲϯ ϴϴ ĞĐ ϭϯ ϭϯϭ Ϭϯ DĂƌ ϭϰ ϭϳϭ ϵθ :ƵŶ ϭϰ ϭϱϭ ϬϬ ^ĞƉ ϭϰ ϭϰϳ ϰϯ ĞĐ ϭϰ ϭϳϱ Ϭϳ DĂƌ ϭϱ ϭϳϵ ϭθ :ƵŶ ϭϱ ϮϬϴ ϬϮ ^ĞƉ ϭϱ ϯϰ ϭθ ĞĐ ϭϱ ϭϭϭ ϰϲ DĂƌ ϭϲ ϭϱϰ ϰϯ нϭϳй нϭϯй нϯϯй нϳй нϲй нϭϰй Ͳϭϴй ͲϭϬй Ͳϭϭй нϭй нϰй нϯй нϭϰй Ͳϭϴй нϰй нϭϯй Ͳϭй нϭϯй нϵй нϵй ϳϯ ϳϱ ϵϯ ϴϲ ϭϯϭ ϭϯϳ ϭϯϭ ϭϭθ ϭϭϱ ϭϭϲ ϭϭϳ ϭϯϭ ϭϯθ ϭϯϲ ϭϰϵ ϭϱϯ ϭϲϯ ϭϳϳ ϭϳθ ϭϵϭ ϭϭd ϱ ϭθϭ ϮϬϳ ϱ Ϭϯϵ ϱϱϲ ϱ ϲθθ ϲϲϯ ϱ ϳϬϭ Ϭϯϭ ϰ ϱϳθ ϴϲϯ ϰ ϴϬϮ Ϭϲϭ ϱ ϱϱϯ ϯϳϭ ϱ ϱϯϱ ϯϯϯ ϲ ϬϮϱ ϯθϲ ĞĐ ϭ W ϯϯ ϱͳljƌ >Žǁ ϭϯ ǀƐ /ŶĚ ǀŐ ϭ ϭdž O eil Methodology The stock is trading 7% below its 50-DM. It has a strong RS Rating of 87 but a poor /D Rating of C, reflecting distribution. In Q3 2017, earnings per DR increased 105% y/y to $0.43, which helped improve the stock s PS Rank to 84. Consensus estimates have the Company s 2017 and 2018 PS growing 43% and 8%, y/y, respectively. In 9M 2017, revenues increased 14.2% y/y, compared with 9M This was mainly due to a 9% growth in sales volume. The Company s gross profit improved 34.5% y/y to $546.4M in 9M Gross profit for the lithium segment accounts approximately 61% of Company s gross margin for 9M SQM plans to invest $30M in lithium hydroxide expansion in ; $100M in potassium nitrate expansion in ; $30M in Iodine capacity expansion in ; and $675M in the ChauchariOlaroz project in rgentina in Driven by growth in electric vehicles, the market for rechargeable batteries is expected to double by 2025, according to consultancy CRU, increasing demand for raw materials, such as lithium. Growth Drivers The Caucharí-Olaroz lithium project in rgentina is expected to start operating by the end of SQM recently announced a 50/50 joint venture with Kidman Resources to develop a 40,000 MT lithium project in ustralia. These projects are in line with the Company s strategic plan to develop lithium projects. ooking Forward SQM expects demand growth to surpass 14% this year in the lithium market. The Company expects higher prices for the remainder of this year. It also expects the demand to reach more than 500K MT by In the iodine market, sales volume grew 30% y/y to 9,700 MT in 9M 2017 and is expected to surpass 12,500 MT this year. The Company plans to expand total capacity to 14,000 MT by the end of ext Catalyst: The Company s Q results announcement on February 28, ϬϳϮ ϯ ϯϯϳ ϵϯϱ ϯ ϯϯϭ ϱϯϭ ϯ ϯϰθ ϵϯϰ ϯ ϯϭϲ ϱϯϯ ϯ Ϯϳϲ ϵϯϳ ϰ ϲϭϲ ϱϯϯ ϱ ϬϮϲ ϱϯϯ ϱ Ϯϰϳ ϲϭϳ ϱ ϰϯϭ ϳϵϮ ϰ ϳϯϬ ϲϰθ ϵ ϵϭϰ Ϭϭϯ ^, Z ^, > z &h ^ Π ϮϬϭϲ t/>>/ D KΖ /> н K / ^ŽĐŝĞĚĂĚ YƵŝŵŝĐĂ z DŝŶĞƌĂ Ğ ŚŝůĞ WƌĞĨ ^Y >Ϳ tğğŭůlj ĂƐ ŽĨ tğě ĞĐĞŵďĞƌ Ϭϳ ϮϬϭϲ ĞĐĞŵďĞƌ Ϭϳ ϮϬϭϲ ocal Code: CHSQMB Bloomberg Symbol: SQM/B:CI ISI: CP8716X1082

112 Sociedad Quimica Y Minera De Chile B Pref. SOCIDD QUIMIC Y MIR (SQB.C) SGO RIGS BUSISS: SC SOCIDD QUIMIC Y MIR D CHI S.. (SQM), IS PRODUCR PRIC = OF POTSSIUM ITRT D IODI. TH COMPY PRODUCS 10 X PS SPCITY PT UTRITS, IODI DRIVTIVS, ITHIUM D ITS DRIVTIVS, POTSSIUM CHORID, POTSSIUM SUFT D CRTI IDUSTRI CHMICS. ITS SGMTS ICUD SPCITY PT UTRITS, IDUSTRI CHMICS, IODI D DRIVTIVS, ITHIUM D DRIVTIVS, POTSSIUM, D OTHR PRODUCTS D SRVICS. SPCITY PT UTRITS R FRTIIZRS THT B FRMRS TO IMPROV YIDS D TH U W K Y PS CP (DC.) CF/SHR CP PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI CP) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK CHI CHMICS-GRICUTUR M 84.26M SHRS MGMT owns X-DIV FOT MKT CP QUITY OF CRTI CROPS. IDUSTRI CHMICS HV RG OF PPICTIOS I CHMIC PROCSSS, SUCH S TH MUFCTURIG OF GSS D IDUSTRI ITRTS. IODI D ITS DRIVTIVS R USD I TH X-RY COTRST MDI D BIOCIDS IDUSTRIS, MOG OTHRS. ITHIUM D ITS DRIVTIVS R USD I BTTRIS, GRSS D FRITS FOR PRODUCTIO OF CRMICS. POTSSIUM CHORID IS COMMODITY FRTIIZR THT IS PRODUCD D SOD BY TH COMPY CROSS TH WORD CP 4.03T CHI SS CP1.41T PS RTIG IC CP33504(OH -15%) Up 65.13% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(18 STBIITY) +9% %(26 STBIITY) +3% COMPOSIT RTIG IVT T/O PRIC SC x DBT % %: 52%: 47% 28%: 29%: 33% TX RT : : BCKOG X '16 BK.V R&D DIV674.83(2.0%) DIV GR RT-4% (36) BT 1.16(25) PH 0.03(0.02) IGPG % Global Focus M CP VOUM 3M 2M 1M 700 K SP Q -48% BOW ST. PS (CP) % CHG SS(BI CP) % CHG MRGI FTR TX % % 14.0% % % 15.2% % % 13.6% % % 14.2% % % 15.9% % % 18.5% % % 17.2% % % 3.1% % % 10.8% % % 14.9% % % 17.0% % % 11.1% % % 14.6% % % 19.4% % % 20.0% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) 112/4660 DC /9852 MR /10268 JU /5118 SP /4985 DC /5620 MR /5627 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Basic Material: Chemicals-gricultural 139/4506 SP /4737 DC /5507 MR /5513 JU /6143 SP /6374 DC /6905 MR /7674 JU % '13-18 P..'S OW OW HI ST 271/8169 SP 17 DC Q FOR IFORMTIO, C OR VISIT % % 20.2% 400 K DC 17 12X 43X 33X MR 18 TM DTGRPHS 2/2/2018

113 IDI sğěăŷƚă s / W^ ϭϭ dž ϳϬ ϬϬ ϲϭ ϬϬ ϱϭ ϬϬ ϰϲ ϬϬ ϰϯ ϬϬ ϯθ ϬϬ ϯϰ ϬϬ ϯϭ ϬϬ Source: Corporate Website Vedanta d/k > / / džđś / ϮϬϱ ϬϭϬϮϱ нϵϭ ϴϯϮ ϮϰϲϬϲϬϬ W^ ZĂŶŬ ϳϯ DŝŶŝŶŐͲDĞƚĂů KƌĞƐ ǀĞĚĂŶƚĂůŝŵŝƚĞĚ ĐŽŵ DŬƚ ĂƉ /Zϭ Ϭϰd ^ĂůĞƐ /ZϳϲϬ ϳϭ WĂŶĂũŝ / / s d >/D/d /^ dhz > Z ^KhZ KDW z ' ' / d, h^/ ^^ K& D h& dhz/' KWW Z KWW Z WZK h d^ >hd/hd >hd/hd WZK h d^ DKZ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬϭϵ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ Ϯϱ Ϯϲ ϯϯ ϰϭ ϰϵ ϭϳ ϯϭ Ϭϭ Ϯϲ Ϯϰ Ϯϭ ϰϲ ͲϱϮ ϳϳ Ͳϰϭ ϯθ Ϯϯ ϰϳ Ϯϳ ϲϰ ϭθйź W^ /Z ϯϰ Ϯϱ Ϯϰйź ^, &>Kt ^,Z /Z Ϯϰ ϱϰ ϯϭ ϲϲ ϰϵ ϳϱ ϯϯ Ϯϰ Ϭ ϵϲ ϰϲ ϭθ ϱϯ ϲϰ Ϯϲ ϳϲ ϰϰ ϲϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ Ͳϱй WZ d y D Z'/ й ϱϱй ϱϵй ϲϭй ϯθй Ͳϲй ϭϰй Ͳϭϰй Ͳϰϰй ϭϵй ϮϬϭϱͲϭϳ ϴϮй Z dhz K Yh/dz й ϱϯй ϰϯй ϰϭй ϭϵй ϭϰй ϭϰй ͲϮϱй Ͳϭϵй ϭϭй ϮϬϭϯͲϭϳ ^ > ^ й, ' ϯϭй ϭθй ϱϵй ͲϭϬй Ͳϲϳй Ϯ ϯϭϲй ϭϭй Ͳϭϯй ϭϯй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϰϵ< ϱθ< ϵϯ< ϴϯ< Ϯϳ< ϲϲϯ< ϳϯϳ< ϲϰϯ< ϳϮϮ< /s d K ϰ ϳdž ϱϯ t <>z :ƵŶ Ϭϵ :ƵŶ ϭϲ :ƵŶ Ϯϯ :ƵŶ ϯϭ :Ƶů Ϭϳ :Ƶů ϭϰ :Ƶů Ϯϭ :Ƶů Ϯϴ :Ƶů ϯϭ d й ϮϬϭϱͲϭϳ ϵϳй ϭϭϯй ϱϭй d 'Z W, Z d/' ϳϮ ϲϵ ϳϭ ϳϱ ϳϱ ϳϱ ϳϯ ϳϱ ϳϲ d y Z d ϮϬϭϱͲϭϳ ϭϳй s' />z sk> ϬϬϬͿ ϭϯ ϱϯϭ ϭϯ ϲϲϲ ϭϯ ϯϳϵ ϭϯ ϭϯϳ ϭϯ ϴϮϮ ϭϯ ϰϱϰ ϭϭ ϲϵθ ϭϭ ϰϳϰ ϭϭ ϯϭϯ <>K' ϮϬϭϱͲϭϳ < s > ϭ ϯθdž Ζϭϳ hw Kt sk>hd ϭ ϭ ϭ Ϭ ϭ Ϭ ϭ Ϯ ϭ ϰ ϭ ϱ ϭ ϱ ϭ ϱ ϭ ϳ Z Θ ϭϵ ϰϱ ϳ ϬйͿ /s 'Z Zdнϯϴй ϵϵͿ hd /^d Z d/' Ϯϯ Ϯϰ Ϯϳ ϯϯ ϰϭ ϯϯ ϯϱ ϰϲ ϰϱ /s /Z ϭ ϳϱ Ϯϵ ϬϬͿ >W, Ϭ ϭϭ Ϭ ϬϰͿ Z > d/s ^dz 'd, ϲϵ ϲϱ ϲϲ ϲθ ϲϲ ϲϳ ϳϭ ϳϯ ϳϱ d 'ZKhW Z < ϭϰϳ ϭϰϯ ϭϯϰ ϭϭθ ϭϭϵ ϭϭϯ ϭϭϭ ϭϭϵ ϭϭθ ϮϬϭϳ DW>Kz ^ ϳ ϰϱϯ ϭϯйͿ Ϯϲ ϬϬ Ϯϰ ϬϬ Ϯϯ ϴϯ ϮϮ ϬϬ ^ŚĂƌĞƐ ϯ ϳϭϳ &ůžăƚ ϭ ϵϳϭ W^ ƵĞ ŝŷ ϴϳ ĂLJƐ ĞͿ K, Ͳϭй D'Dd ŽǁŶƐ ^ŚĂƌƉ ƌğđžǀğƌlj ŝŷ ƉƌŽĨŝƚĂďŝůŝƚLJ ĞdžƉĞĐƚĞĚ ƚž ĐŽŶƚŝŶƵĞ ƚśƌžƶőś &zϭϵ ĐƚŝŽŶĂďůĞ ĂĨƚĞƌ ďƌğăŭŝŷő ŽƵƚ ŽĨ Ă ϭϲͳ ǁĞĞŬ ĐƵƉ ĨŽƌŵĂƚŝŽŶ Growth Drivers The Vedanta-Cairn merger, which was completed in Q1 FY 2018, will strengthen the group s balance sheet, reduce its overall cost of capital, and drive stable cash flow. ϰϯϭ ϯθϭ ϯϰϭ ϯϭϭ нϱ Ϯϱ ϮϰϬ 'ŽŽĚ ƵƉ ĚŽǁŶ ǀŽůƵŵĞ /Z нϭ ϵϭй ϮϮϬ ϭϵ ϬϬ ϭϵϭ ϭϳ ϬϬ ϭϳϭ ϭϱ ϬϬ ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ ϳϱ ϵ ϬϬ O eil Methodology The stock has breached its 50-DM recently. Its next support level is IR 297. The stock s RS line has been declining for the last two weeks, with an RS Rating of 71 and an /D Rating of B. In Q2 FY 2018, Vedanta s revenues grew 37% y/y to IR 215.2B, mainly due to higher volume at Zinc India and a rampup of its aluminium business. The Company s PS grew 18% y/y to IR 5.64 in Q2 FY 2018, mainly due to strong commodity prices and higher volume. Consensus estimates have the Company s FY 2018 and FY 2019 PS growing by 15% and 35%, y/y, respectively. This is likely to improve its current PS Rank of 54. ϱϭϭ ϰϲϭ Ϯϳϵ ϴϱ ϭϭ ϬϬ Company Overview Vedanta is the Indian subsidiary of Vedanta Resources Plc, a ondon-listed company. It was formed out of the merger of Sesa Goa and Sterlite Industries. The Company has a presence across India, South frica, amibia, ustralia, and Ireland. Q revenues by segment: copper, 29%; zinc, 28%; aluminium, 24%; oil & gas, 10%; power, 7%; iron ore, 2%. ϳϬϬ ϮϲϬ &ŝǀğͳljğăƌ ŚŝŐŚ ŝŷ Ɖ ƚ ŵăƌőŝŷɛ WZ/ ϲϭϭ ϭϯ ϬϬ ϭϯ ϬϬ ϭϭ ϬϬ Vedanta td (VD.I) is a global diversified natural resources company. The Company continues to grow through volume increases in the zinc, aluminium, copper, and oil and gas segments. >K' &ŝdžğěͿ ϭϭϭ ϵϭ ϴ ϬϬ ϴϬ ϳ ϬϬ ĞĂƌͲƉĞƌĨĞĐƚ ƌăƚŝŷő ĂŶĚ ŐŽŽĚ ϳϬ Z ^ ƌăƚŝŷő ϲ ϬϬ ϲϭ ϱ ϬϬ ϰ ϲϭ ϱϭ ϰϲ ϰ ϮϬ ϰϯ ϯ ϴϬ ϯθ ϯ ϰϭ ϯϰ ϯ ϬϬ ϯϭ ^ƚƌžŷő ƋƵĂƌƚĞƌůLJ ŐƌŽǁƚŚ ĨŽƌ ƉĂƐƚ ƚśƌğğ ƋƵĂƌƚĞƌƐ Ϯ ϲϭ Ϯ ϰϭ Ϯϲ Ϯϰ >K' sk>hd ϰϭd ϮϬD Ͳϰϰй ϳD ϲ ϮD Ϯ&/ / >^ ĞĐ ϭϯ DĂƌ ϭϯ ϴ W^ /ZͿ ϱ ϳϮ ϯ ϰϯ й W^ й, ' ͲϮϴй Ͳϳϰй Ϯ^ > ^ D/> /ZͿ Ϯ ϯϲϱ ϲ Ϯ ϴϰϴ Ϯ й^ > ^ й, ' Ͳϵϭй ͲϵϬй йd Z'/ &d Z d y нϯϭϭ Ϭй нϭϭϰ ϱй ϱw >KtͲ,/', ϰͳϱ ϯ&h ^ ϭϱϭ ϱͳϳ ϭϱϰ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϭϰ :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ DĂƌ ϭϱ :ƵŶ ϭϱ ^ĞƉ ϭϱ ĞĐ ϭϱ DĂƌ ϭϲ :ƵŶ ϭϲ ϭ ϰϭ ϴ ϭϲ ϲ ϯϳ ϱ ϱϯ ϭ Ϯϳ ϱ ϰϲ ϱ ϯϱ Ͳϲϰ ϴϱ Ϯ ϴϰ ϯ ϲϭ ϭ ϯθ Ͳϰϵ Ϯϭ Ϯ Ϭϳ Ͳϴϳй Ͳϭϴй нϭϭй нϲϭй ͲϭϬй Ͳϯϯй Ͳϭϲй Ͳϭ Ϯϳϱй нϭϯϰй Ͳϯϰй Ͳϳϰй нϯϰй ͲϮϳй ϯ ϳϴϰ ϭ Ϯϱϯ ϱϲϲ Ϭ ϭϵϱ ϮϮϵ ϵ ϮϬϴ ϵϰϰ ϭ ϭϳϭ ϯϲϲ ϲ ϭϵϱ ϰϵϯ ϴ ϭϵϯ ϭθϵ Ϭ ϭϳθ Ϭϰϱ ϲ ϭϳϭ Ϭϴϴ ϭ ϭϲϱ ϱϭθ ϱ ϭϰθ ϳϬϮ ϱ ϭϱϵ ϭϭϯ ϲ ϭϰϰ ϯϳϭ ϴ Ͳϳϴй нϵ<й нθ<й нϳ<й нϰ<й ͲϮϯй ͲϮй Ͳϭϱй Ͳϭй Ͳϭϱй ͲϮϯй Ͳϭϭй Ͳϭϱй нϭϭϵ ϱй нϵ ϰй нϵ ϲй нϳ ϴй нϯ Ϯй нθ ϯй нθ ϯй ͲϭϬϴ Ϭй нϱ Ϭй нϲ ϱй нϯ ϳй Ͳϴϳ Ϭй нϰ ϯй ϲͳθ ϭϱθ ϲͳϭϭ ϯϯϭ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϵͳϭϭ ϯθϲ ϴͲϭϬ ϯϲϭ ϴͲϭϱ ϯϵϰ ϭϰͳϭϳ ϰϭϰ ϭϭͳϭϲ ϯϳθ ϯϲϯ ϯϯϰ ϯϰϵ ϯϭϭ ϯϭϱ ϯϯϯ ^ĞƉ ϭϲ ĞĐ ϭϲ DĂƌ ϭϳ :ƵŶ ϭϳ ϰ ϮϮ ϲ ϯϭ ϴ ϵϰ ϰ ϯϳ нϭϳй нϯϱϳй нϭϭθй нϭϭϭй ϭϱθ ϱϵϲ Ϭ ϭϵϰ ϭϱϯ Ϯ ϮϮϱ ϭϭϭ Ϭ ϭθϯ ϴϱϬ Ϭ Ͳϰй нϯϭй нϰϭй нϯϳй нϳ ϵй нϭϭ ϱй нϭϭ ϴй нθ ϯй ϯϰϭ ϯϵϭ ϭϭͳϭϯ ϰϭθ ϵͳϭϯ ϰϳθ ^ĞƉ ϭϳ ϵ ϯϲğ нϭϯϯйğ ϮϬϯ ϰ<ğ нϯθйğ ĞĐ ϭϳ ϳ ϲϭğ нϯϭйğ ϮϮϯ ϯ<ğ нϭϱйğ DĂƌ ϭθ ϱ ϴϬĞ ͲϯϱйĞ Ϯϯϯ Ϭ<Ğ нϯйğ W ϭϯ ϮϬϭϴ Ɛƚ ϭϭ ϭ ϮϬϭϵ Ɛƚ ϴ Ϯ ϱͳljƌ,ŝőś ϭϳ ϱͳljƌ >Žǁ ϰ ǀƐ /ŶĚ ǀŐ Ϭ ϲdž sğěăŷƚă s /Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ :ƵůLJ ϯϭ ϮϬϭϳ The government s push for the development of infrastructure is expected to create a huge demand for metal and other resources. This will be beneficial for the Company. The Company has maintained a strong balance sheet, reducing gross debt by approximately IR 114.7B in H1 FY The Company is committed to deleveraging its balance sheet and to achieving a stronger financial position in FY Vedanta signed an MoU with the Jharkhand government to build a 1M metric ton per annum (MTP) steel plant. ooking Forward Management revised its FY 2018 capex guidance to $1.1B, compared with previous guidance of $1.2B. Management expects capacity expansion at Zinc India to reach 1.2 MTP by FY The first phase of the Gamsberg project is expected to be completed in mid-2018, with a capex target of $200M. The Company expects FY 2018 aluminium production to be MT. Production during the quarter for copper was at record 106 kilo tons (kt) and management expects full-year production at 400kt. ext catalyst: The Company s Q3 FY 2018 results announcement on February 12, ocal Code: I:VD Bloomberg Symbol: VD:I ISI: I

114 Vedanta IDI VDT (VD.I) S MIIG-MT ORS 3.72B 1.56B SHRS RIGS BUSISS: MGMT owns X-DIV SC VDT IMITD IS TUR RSOURC COMPY GGD I TH COSISTS OF POWR, ICUDIG POWR FCIITIS GGD I PRIC = BUSISS OF MUFCTURIG COPPR D COPPR PRODUCTS, D GRTIO D S OF COMMRCI POWR, D OTHR, WHICH 10 X PS UMIUM D UMIUM PRODUCTS. TH COMPY'S SGMTS COSISTS PIG IRO D MTURGIC COK. ITS IRO OR ICUD COPPR, WHICH COSISTS OF MUFCTURIG OF COPPR BUSISS COSISTS OF IRO OR XPORTIO, MIIG, CTHOD, COTIUOUS CST COPPR ROD D OD SIM, BFICITIO D XPORTS. TH COMPY HS IRO OR MIIG ICUDIG FROM PURCHSD COCTRT D MUFCTURIG OF OPRTIOS I TH STTS OF GO D KRTK. ITS COPPR PRCIOUS MT FROM OD SIM, SUFURIC CID, PHOSPHORIC BUSISS COSISTS OF CUSTOM SMTIG. ITS POWR BUSISS CID; IRO OR; UMIIUM, WHICH COSISTS OF MUFCTURIG COSISTS OF 2,400 MGWTT THRM CO BSD POWR FCIITY OF UMI D VRIOUS UMIUM PRODUCTS; POWR, WHICH I TH STT OF ODISH U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR 1.24T SS IR BI IDI PS RTIG 31 IR334.30(OH -6%) Up 19.46% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % % +2, COMPOSIT RTIG IVT T/O 4.7x DBT % %: 112%: 50% : : 17% TX RT : : BCKOG X '17 BK.V R&D DIV 19.7(5.8%) DIV GR RT+80% (99) BT 1.78(26) PH -0.05(-0.03) 600 0IBOM Global Focus M IR % B VOUM 80 M 50 M 30 M 20 M DC Q -58% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 9.6% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /385M DC % % 7.8% +13.9% /338M MR % % 2.2% /318M JU % % 8.3% +7.6% /318M SP % % 8.3% % % % 5.0% % % 2.7% % % % 4.3% % % 9.0% % % 11.0% /314M DC /318M MR /305M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Basic Material: Mining-Metal Ores % % 6.5% 343/325M SP /316M DC /324M MR /310M JU /287M SP /306M DC #+118% % 11.8% +10.5% /283M MR % % 8.3% % % 8.4% 501/456M JU /481M SP '13-18 P..'S OW OW HI ST 563/508M DC 17 MR Q -41% 9-11 FOR IFORMTIO, C OR VISIT % % 9.7% +15.1% 10 M 7M 4X 13X 16X MR 18 TM DTGRPHS 2/2/2018

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The Company benefits from ongoing cost savings and capacity expansion. ϴϬ ϳϬ ϲϭ ϱϭ ϰϲ ϰϯ Rising R/S line ϯθ ϯϰ Company Overview JSW Steel is the flagship company of JSW Group. The Company operates through six steel plants located in South and West India, with a total production capacity of 18M tons per annum (MTP). It is also engaged in cement, mining, and construction activities. JSW added about 447 retailers and 20 distributors in Q2 FY 2018 to expand its distribution network. It is the largest steel exporter in India, with about 26% of sales derived from exports. O eil Methodology The stock is forming a new consolidation base. We would like to see a strong breakout before adding to positions. The stock s RS line is near all-time highs and it has a good RS Rating of 77 and /D Rating of B-. In Q2 FY 2018, consolidated revenues increased 17% y/y to IR 168.2B, driven by a 17% y/y growth in value-added and special products sales due to a higher volume of electrical steel, CRC, galvanized, and color-coated products. The share of value-added products increased about 37%, compared with 33% in Q4 FY Q2 FY 2018 PS grew 16% y/y to IR Consensus estimates have the Company s FY 2018 and FY 2019 PS growing 15% and 29%, y/y, respectively. This is likely to improve its current PS Rank of 32. Growth Drivers The Company plans a capital expenditure of about IR 268B from FY 2018 to FY 2021 to increase its capacity by five MTP. ϯϭ Ϯϲ Ϯϰ ϮϮ Good quarterly estimates ϮϬ ϭθ >/ sk>hd Strong Q2 FY 2017 earnings and sales growth ϭθϭd ϭϰϭd ϭϭϭd нϲϵй ϲϭd Ϯϲ ϯd ϭϭ&/ / >^ ĞĐ ϭϭ DĂƌ ϭϯ ϭθ ϯ ϰϭ W^ /ZͿϬ ϰϰ й W^ й, ' Ͳϲϵй Ͳϰй :ƵŶ ϭϯ Ϭ ϵϰ нϭϯϭй ^ĞƉ ϭϯ Ϯ ϲϭ Ͳϱϴй ĞĐ ϭϯ ͲϬ ϮϮ ͲϭϱϬй ϯ^ > ^ D/> /ZͿ ϴϰ Ϭϰϲ ϲ ϭϭϭ ϱϯϲ ϴ й^ > ^ й, ' нϰϭй нϰϭй ϵϵ Ϭϵϴ ϵ нϯϯй нϯϳ ϭй ϵϱ ϭϯϳ ϭ нϭϳй нϯθ Ϯй ϴϴ ϴϳϵ Ϭ нϲй Ͳϯϯ ϭй ϭϭϵ ϭϭϲd ϭϯθ ϵϳd ϭϰϱ ϭϭϳd W^ й ^hzwz/^ ϯϯ ϭϭϲ &h ^ ϭϯϱ ϵϭ^, Z ^, > z &h ^ ϭϯϳd ϭϭϭd Π ϮϬϭϳ t/>>/ D KΖ /> н K / DĂƌ ϭϯ ϭ ϭϯ Ͳϲϳй :ƵŶ ϭϯ Ͳϭ ϱϲ ͲϮϲϲй ^ĞƉ ϭϯ ͲϬ ϰθ Ͳϭϭϴй ĞĐ ϭϯ ϭ ϵϯ нϵϳϳй DĂƌ ϭϰ ϭ ϴϲ нϲϲй :ƵŶ ϭϰ Ϯ ϳϮ нϯϳϰй ^ĞƉ ϭϰ ϯ ϭϭ нϳϰϲй ĞĐ ϭϰ ϭ ϯϲ ͲϯϬй DĂƌ ϭϱ Ϭ ϭϯ Ͳϵϰй :ƵŶ ϭϱ Ϭ Ϭϵ Ͳϵϳй ^ĞƉ ϭϱ Ϭ ϰθ Ͳϴϱй ϵθ ϵθϭ ϱ ϭϭϯ ϳϬϲ ϲ ϭϯϵ ϴϯϳ ϴ ϭϯϲ ϮϮϳ ϳ ϭϰϯ ϰϯϰ ϭ ϭϯϯ ϱϰϭ ϳ ϭϯθ ϵϰϳ ϵ ϭϯϯ ϮϮϵ ϱ ϭϯϱ ϵϵϳ Ϭ ϭϯϲ ϰϳϯ ϱ ϭϭϵ Ϭϲϵ Ϭ Ͳϯй нϰй нϯϲй нϱϯй нϰϱй нϯϵй нϳй Ͳϯй ͲϭϮй Ͳϱй ͲϮϮй нϭ ϱй нϱϯ ϰй нϭϲϯ Ϭй ͲϯϬ ϯй ͲϮϵ ϳй Ͳϰϯ ϭй ͲϭϮϯ ϯй Ͳϭϲϯ ϭй ϭϯϲ ϵθd ϭϯθ ϭϭϯd ϭϯϲ ϭϭϯd ϭϯθ ϭϯϵd ϭϱϭ ϭϰϭd ϭϳϱ ϭϱϳd ϭθϳ ϭϳϰd ϭθθ ϭϳϭd ϭθϯ ϭϲϵd ϭϲϵ ϭϵϭd ϭϳθ ϭϳθd ĞĐ ϭϱ Ͳϯ ϴϮ Ͳϯϴϭй :ƵŶ ϭϲ ϰ ϲϯ нϱ<й ^ĞƉ ϭϲ ϯ ϬϮ нϱϯϵй ĞĐ ϭϲ Ϯ ϯϯğ нϭϲϭйğ DĂƌ ϭϳ ϭ ϱϭğ нϱϭйğ ϴϲ ϵθϯ ϳ ϭϭϳ ϰϳϭ ϲ ϭϯθ ϴϱϴ ϭ Ͳϯϰй Ͳϳй нϯй нϯϭϲ ϭй Ͳϭϯϵ ϵй нϯϲθ ϱй ϭϰϰ ϮϬϴ ϴ нϯϯй Ͳϳ ϯй ϭϰϯ ϴ<Ğ нϲϰйğ ϭϰϭ ϵ<ğ нϯϭйğ Ϯϭϴ ϭϲϱd ϮϬϵ ϭϲϯd ϭϳϲ ϭϳϯd DĂƌ ϭϲ ϭ ϬϬ нϳϯϯй ϭϳϵ ϭϲϭd Ϯϭϯ ϭϲϲd W ϯϳ ϮϬϭϳ Ɛƚ ϭϰ Ϭ ϱͳljƌ,ŝőś ϭϭϯ Ϭ ϱͳljƌ >Žǁ ϱ Ϭ ǀƐ /ŶĚ ǀŐ :Ɛǁ ^ƚğğů :s^ /Ϳ tğğŭůlj ĂƐ ŽĨ tğě :ĂŶƵĂƌLJ ϭϭ ϮϬϭϳ :ĂŶƵĂƌLJ ϭϭ ϮϬϭϳ Crude steel production grew 4.5% y/y in H1 FY Steel demand is expected to improve further due to the government s increased focus on infrastructural projects. The World Steel ssociation expects world steel demand to grow 2.8% in Steel prices also strengthened due to improved demand outlook. In ugust 2016, JSW entered into a joint venture agreement to acquire a 74% stake in JSW Praxair Oxygen. The Company is expected to benefit from the backward integration of critical inputs. ooking Forward In an effort to tackle smog, China has stopped the production of highly polluting low-end steel. arge Indian steel companies, such as JSW, are well positioned to benefit from the reduction in steel exports from China. Chinese steel exports declined 28% y/y in H1 CY For FY 2018, the Company expects steel sales volume growth of 4.9% y/y to 15.50M tons. ext catalyst: The Company s Q results announcement on February 1, ocal Code: I:JSWST Bloomberg Symbol: JST:I ISI: I

116 Jsw Steel IDI JSW ST (JVS.I) S RIGS BUSISS: SC JSW ST IMITD IS HODIG COMPY. TH COMPY IS PRIC = GGD I TH BUSISS OF PRODUCTIO D DISTRIBUTIO OF 10 X PS IRO D ST PRODUCTS. ITS SGMTS ICUD ST; POWR (USD MIY FOR CPTIV COSUMPTIO), D OTHRS, WHICH ICUDS CMT, MIIG D COSTRUCTIO CTIVITIS. ITS PRODUCT PORTFOIO I FT D OG ST PRODUCTS ICUDS HOT ROD (HR) COIS, SHTS D PTS; COD ROD COIS D SHTS; GVIZD PRODUCTS; GVUM PRODUCTS; O-GRI ORITD CTRIC ST (CRGO); PR-PITD U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK ST-PRODUCRS 2.42B 1.35B SHRS MGMT owns X-DIV FOT MKT CP IR BI. SS IR BI GVIZD PRODUCTS (COOR COTD SHTS/COIS); PR-PITD GVUM PRODUCTS; WIR RODS; SPCI ST BRS/WIRS; ROUDS D BOOMS, D GS. ITS COOR COTD PRODUCTS ICUD JSW PRGTI, JSW COOURO D JSW COOURO+. ITS GVIZD PRODUCTS ICUD JSW VISHWS D GVOS. IT HS PTS I OVR SIX OCTIOS I IDI, ICUDIG VIJYGR I KRTK, SM I TMI DU, D TRPUR, VSID, KMSHWR D DOVI I MHRSHTR. IDI PS RTIG 59 IR299.00(OH -4%) Up 59.42% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % % COMPOSIT RTIG IVT T/O 3.9x DBT % %: 189%: 144% %: : 33% TX RT : : BCKOG X '17 BK.V R&D DIV 2.25(0.7%) DIV GR RT+6% (27) BT 1.79(32) PH 0.01(0.01) IBOM % Global Focus M IR B /1 VOUM 60 M 40 M 30 M DC Q -15% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX 1.93 #+1019% % 3.4% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /139M DC % % 3.4% +2.3% /140M MR #+274% % 5.0% /157M JU #+733% % 5.4% +10.7% /173M SP % % 2.5% /171M DC % % 0.5% +8.2% % % 0.2% /169M MR /190M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Basic Material: Steel-Producers % % 1.1% +3.4% /178M SP % % % 2.3% % % 9.6% /172M DC /160M MR /165M JU % % 5.0% /165M SP #+203% % 5.2% /174M DC % % 6.1% +17.2% /170M MR % % 4.3% % % 9.8% 245/184M JU /222M SP '13-18 P..'S OW 10X OW 20X HI 104X ST 275/221M DC 17 MR Q +23% FOR IFORMTIO, C OR VISIT % % 5.0% +14.5% 20 M MR 18 TM DTGRPHS 2/2/2018

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In the past five years, BRI has seen sharp growth and steady market share gains. Its revenues and PS have grown an average of 10% and 37%, respectively. Its BITD margin has expanded 800bps to 13.7%. Its margin improvement is likely to persist due to efficiency gains, boosting its PS CGR to 19% during Thus, BRI s current PS Rank of 70 is expected to improve in the coming quarters. In Q2 FY 2018, BRI s revenues increased 7% y/y to IR 25B, driven by mid-single digit volume growth. BITD grew 11% y/y and margin expanded 64bps y/y. The Company stated that all its trade channels have normalized post Goods and Services Tax (GST). ϰϯϭϭ нϰϯй ϯθϭϭ ϯ ϴϬϲ ϯϰϭϭ нθϳ ϬϬ ϮϲϬϬ ϮϰϬϬ ϮϮϬϬ Ͳϭϳй Stock breaking out, trading constructivelyϭϵϭϭ ϭϳϭϭ along its 10-week moving average нϭϭϳй нϭϭθй ϴϬϬ Ͳϭϳй ϭϵ ϰϰ Good relative strength rating and accumulation / distribution ratings нϯϵй нϯθй ϭϯ ϴϵ ϭϯ ϳϴ ϭϭ ϱϲ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ϵϭϭ нϲϵй ϮϮ ϮϮ ϭϭ ϲϳ ϭϱϭϭ ϭϭϭϭ Ϯϱ ϬϬ ϭϲ ϲϳ /Z нϯ ϯϰй ϯϭϭϭ ϲϯ н Ϯϳ ϳϴ Company Overview BRI has robust brand power in its portfolio: Tiger (mass biscuits), Treat (cream biscuits), (crackers), Good Day (premium cookies and its highest selling brand), Marie, Milk Bikis, and utrichoice (premium high-fiber biscuits). In March 2017, BRI s direct outlets reached 1.55M, almost two times the direct outlets of its nearest competitor, Parle. FY 2017 revenue by product mix: biscuits, 77%; bread and rusk, 10%; cake, 4%; dairy, 4%; other, 5%. ϱϭϭϭ ϰϲϭϭ нϯϭй ϰϭ ϲϳ Britannia Industries (BRI.I) is one of the leading food companies in India. Its primary products include biscuits, bread, cakes, rusks, milk, butter, cheese, and ghee, which are distributed through 4.5M retail outlets. It continues to grow by introducing new premium products. WZ/ ϲϭϭϭ Strong PS growth forecasts Strong earnings growth rate Good stability factor ϰϳ ϮϮ ϯϲ ϭϭ ϯϯ ϯϯ ϯϭ ϱϲ >K' &ŝdžğěͿ ϳϬϬϬ ͲϮϯй ϱϯ ϳϴ Source: Corporate Website K, Ͳϭй ϳϬϬ ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ Ͳϭϱй ϯθϭ ϵ ϰϰ ϯϰϭ ϴ ϯϯ ϯϭϭ ϳ ϮϮ ϲ ϲϳ cceleration in quarterly PS growth ϮϲϬ ϮϰϬ >K' sk>hd ϭd ϱϭϭ< ϯθϯ ϱ< ϯϭϭ< нϯй ϭϭϭ< Ϯ&/ / >^ ĞĐ ϭϯ DĂƌ ϭϯ Ϯϭ ϳϮ W^ /ZͿ W^ й, ' ^ > ^ D/> /ZͿϲϭ ϯϱϵ ϭ ^ > ^ й, ' нϰ Ϯй D Z'/ &d Z d y ϲw >KtͲ,/', ϮϭͲϮϱ ϮϭͲϮϲ ϵ&h ^ ϴϱ ϴϯ :ƵŶ ϭϯ ϳ ϰϲ ^ĞƉ ϭϯ ϴ ϭϰ ϭϱ ϱϭϱ ϭ ϭϳ ϰϭϰ ϴ нϱ ϴй нϱ ϲй ĞĐ ϭϯ ϴ ϯϵ нϲϯй ϭϳ ϵϯϭ ϭ нϭϭй нϱ ϲй ϮϭͲϯϮ ϵϯ ϮϱͲϯϮ ϭϭϭ ϮϲͲϯϯ ϭϯϰ Π ϮϬϭϳ t/>>/ D KΖ /> н K / DĂƌ ϭϰ ϴ ϵϵ нϱ ϵй :ƵŶ ϭϰ ϵ ϰθ нϯϳй ϭϳ ϴϲϵ ϵ нϭϱй нϲ ϰй ^ĞƉ ϭϰ ϮϮ ϱϱ нϭϳϳй ϭϵ ϳϰϱ ϭ нϭϯй нϭϯ ϳй ĞĐ ϭϰ ϭϭ ϰϱ нϯϲй ϮϬ ϯϯϯ ϴ нϭϯй нϲ ϴй DĂƌ ϭϱ ϭϯ ϵϰ нϱϱй ϮϬ ϲϯϲ ϰ нϭϰй нθ ϭй :ƵŶ ϭϱ ϭϲ ϭϰ нϳϭй ϭϵ ϱϳϯ ϯ нϭϭй нϵ ϵй ^ĞƉ ϭϱ ϭθ ϰϯ Ͳϭϴй Ϯϭ ϰϱϯ Ϭ нϵй нϭϭ ϯй ĞĐ ϭϱ ϭϳ ϱϳ нϱϯй Ϯϭ ϲϭϭ ϭ нϲй нϵ ϴй DĂƌ ϭϲ ϭϲ ϱθ нϭϵй Ϯϭ ϯϯϲ ϴ нϯй нϵ ϯй :ƵŶ ϭϲ ϭθ Ϯϲ нϭϯй Ϯϭ ϰϭϳ ϳ нϵй нϭϭ Ϯй ^ĞƉ ϭϲ ϭϵ ϱϭ нϲй Ϯϯ ϴϲϵ ϳ нϭϭй нϵ ϴй ĞĐ ϭϲ ϭθ ϯθ нϱй ϮϮ ϴϭϵ ϳ нϲй нϵ ϳй ϮϱͲϮϴ ϭϯϰ ϮϯͲϮϵ ϭϯϭ ϮϬͲϯϭ ϭϱϰ ϮϱͲϯϲ ϭϳϰ ϯϭͳϯϵ ϭϵϵ ϯϭͳϰϰ ϮϮϭ ϰϱͳϱϳ Ϯϰϳ ϰϭͳϱϭ Ϯϲϱ ϯϲͳϰϰ Ϯϴϱ ϯϲͳϰϯ ϮϵϬ ϯθͳϱϭ Ϯϴϴ ϯθͳϰθ ϮϴϮ ϭθ ϭϯϰ ϰ DĂƌ ϭϳ :ƵŶ ϭϳ ^ĞƉ ϭϳ ĞĐ ϭϳ DĂƌ ϭθ ϭϳ ϱθ ϭϳ ϵθğ ϮϮ ϯϲğ ϮϮ ϱϳğ Ϯϭ ϯϳğ нϲй ͲϮйĞ нϭϱйğ нϯϯйğ нϯϯйğ ϮϮ ϰϰϯ ϴ ϮϮ Ϭϵϱ ϵğ Ϯϳ Ϭϳϴ ϯğ Ϯϲ ϰϰϯ ϬĞ Ϯϲ ϯϯϲ ϰğ нϱй нϯйğ нϭϯйğ нϭϲйğ нϭϳйğ нϵ ϰй ϯθͳϰϳ ϯϭϯ ϮϵϮ W ϱϭ ϮϬϭϴ Ɛƚ ϰϰ Ϯ ϮϬϭϵ Ɛƚ ϯϳ Ϭ ϱͳljƌ,ŝőś ϱϳ ϱͳljƌ >Žǁ ϮϬ ǀƐ /ŶĚ ǀŐ Ϯ ϲdž ƌŝƚăŷŷŝă /ŶĚƐ Z/ /Ϳ tğğŭůlj ĂƐ ŽĨ tğě ϭϵ :ƵůLJ ϮϬϭϳ Growth Drivers ccording to ielsen, India s biscuit market has a potential CGR of 7% to IR 350B by FY 2020, mainly driven by the premium segment. The premium category grew 20% annually from 2011 to 2014, faster than the overall biscuit market. It is expected to continue double-digit growth over the next few years. Britannia generates 45-50% of its revenue from this segment and holds a leading market share of about 65%. The GST has brought the unorganized sector (25% market share in biscuits) under the tax net. This helped Britannia to gain 170bps of market share in the Hindi-speaking belt, where it faces intense competition from regional players. In Q4 FY 2017, Britannia signed a joint venture with Greece-based Chipita, which sells long shelf life filled croissants, a new category for Britannia. This project is expected to commercialize in July ooking Forward In FY 2018, consensus estimates call for a double-digit revenue and PS growth of 11% and 15%, respectively. BITD margin is expected to reach 15% by FY 2019, compared with 14% in FY ext Catalyst: The Company s Q3 FY 2018 earnings release on February 12, ocal Code: I:BRITI Bloomberg Symbol: BRIT:I ISI: I

118 Britannia Inds. IDI BRITI IDS. (BRI.I) S FOOD-GRI & RTD M 66.03M SHRS RIGS BUSISS: MGMT owns SC BRITI IDUSTRIS IMITD IS FOOD COMPY, WHICH IS DIRY CTGORY ICUD CHS, FRSH DIRY D PRIC = GGD I TH MUFCTUR OF BISCUITS, CKS D RUSKS. TH CCOMPIMTS. ITS PRODUCTS UDR CKS CTGORY ICUD 10 X PS COMPY OPRTS THROUGH TH FOODS SGMT, WHICH COMPRISS BR CKS, VG CKS, CHUK CK, UT & RISI ROMC, D BKRY D DIRY PRODUCTS. TH COMPY'S PRODUCT BRDS MUFIS. ITS PRODUCT UDR RUSK CTGORY ICUDS PRMIUM UDR BISCUITS CTGORY ICUD GOOD DY, CRCKRS, BK. TH PRODUCTS OF TH COMPY R XPORTD CROSS TH 1400 UTRICHOIC, MRI GOD, TIGR, MIK BIKIS, JIM JM + TRT, WORD, WHICH ICUD GUF COOPRTIO COUCI COUTRIS 1300 BOURBO, ITT HRTS, PUR MGIC D IC TIM. ITS (GCC), FRIC COUTRIS D MRIC COUTRIS. ITS PRODUCTS UDR BRDS ICUD WHO WHT BRDS, WHIT SUBSIDIRIS ICUD M FOODS PRIVT IMITD D 1200 SDWICH BRDS D BRD SSORTMT. ITS PRODUCTS UDR ITRTIO BKRY PRODUCTS IMITD U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP IR BI. SS IR93.35 BI IDI PS RTIG IC IR4726(OH -4%) Up 24.18% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % (5 STBIITY) +8% %(16 STBIITY) +10% COMPOSIT RTIG IVT T/O 13.5x DBT % %: 1.8%: 1.2% 28%: 32%: 32% TX RT : : BCKOG X '17 BK.V R&D 0.3% 22(0.5%) DIV GR RT+25% (10) DIV BT 0.67(11) PH 0.09(0.08) IBOM Global Focus M IR % D VOUM 2M 800 K SP Q -51% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 5.6% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % +58.5% % % 6.4% % % 13.7% +61.6% % % 6.8% % % 8.1% +67.6% % % 9.9% % % 10.3% +50.4% % % 9.8% % % 9.3% +53.6% % % 10.2% / / / / / / / / / / /19345 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Staple: Food-Grain & Related % % 9.8% +44.0% /19291 SP % % 9.7% % % 9.4% +36.9% % % 9.5% 276/ / / /20982 DC 16 MR 17 JU 17 SP K DC Q % '13-18 P..'S OW OW HI ST FOR IFORMTIO, C OR VISIT % % 10.3% +35.3% 400 K DC 17 19X 63X 57X MR 18 TM DTGRPHS 2/2/2018

119 BRZI D ŝăɛ ƌăŷđž /ŶĚƵƐƚƌŝĂ KŶ D Z &K ϮϬ dž нϱϱ ϴϱ ϰϭϭϱ ϱϱϱϭ W^ ZĂŶŬ ϴϴ M Dias Branco Industria On ^ K W h>k džđś ZD / KZϳ ŵěŝăɛďƌăŷđž ĐŽŵ ďƌ &ŽŽĚͲ'ƌĂŝŶ Θ ZĞůĂƚĞĚ :ĂďƵƟ Z /> DŬƚ ĂƉ Z>ϭϯ ϯϰ ^ĂůĞƐ Z>ϱ ϭϯ D'Dd ŽǁŶƐ ^ŚĂƌĞƐ ϭϭϯd &ůžăƚ ϭϭϯd W^ ƵĞ ϯ ϲ ϮϬϭϳĞ K, Ͳϭϵй Strong estimates D / ^ Z K ^ / h^dz/ KD Z /K >/D dk^ /^ Z />Ͳ ^ KDW z WZ/D Z/>z ' ' / d, &KK WZK ^^/' / h^dzz ϮϬϭϲ ƐƟŵĂƚĞ ϮϬϭϳ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ Ϭ ϳϬ ϭ ϴϵ ϯ ϭϭ ϯ ϭϭ ϯ Ϯϯ ϰ ϭϱ ϰ ϲϯ ϱ Ϯϴ ϱ ϯϰ ϳ ϴϱ ϮϮйŸ ϲ ϰϲ ϮϭйŸ W^ Z> ^, &>Kt ^,Z Z> Ϯ ϭϭ ϯ ϳϳ Ϯ ϳϯ ϯ ϯϯ ϯ ϵϱ ϰ ϵϰ ϱ ϳϭ ϲ ϲϭ ϲ ϵϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϵй ϭϭй ϭϳй ϭϲй ϭϰй ϭϰй ϭϯй ϭϰй ϭϰй ϮϬϭϰͲϭϲ ϲй ϱ ^ƚăďŝůŝƚljͿ ϱй Z dhz K Yh/dz й ϵй ϮϬй Ϯϲй ϮϮй ϮϬй Ϯϭй ϮϬй ϮϬй ϭϳй ϮϬϭϮͲϭϲ ϭϯй ϳ ^ƚăďŝůŝƚljͿ ϭϯй ^ > ^ й, ' ϭϯй ϰϱй ϳй ϰй ϭϵй ϮϮй ϮϮй ϲй ϭй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ Z> ϭ ϱϭϳ Ϯ ϭϵϯ Ϯ ϯϰθ Ϯ ϰϰϰ Ϯ ϵϭϭ ϯ ϱϰϱ ϰ ϯϭϯ ϰ ϱθϭ ϰ ϲϯϯ /s d K ϱ ϭdž ϰϯ t <>z Žǀ ϭϭ Žǀ ϭθ Žǀ Ϯϱ ĞĐ ϬϮ ĞĐ Ϭϵ ĞĐ ϭϲ ĞĐ Ϯϯ ĞĐ ϯϭ :ĂŶ Ϭϰ d й ϮϬϭϯͲϭϱ ϵй ϭϭй ϭϭй d 'Z W, Z d/' ϳϰ ϳϬ ϲθ ϲϯ ϲϯ ϳϭ ϲϱ ϱϵ ϲϯ d y Z d ϮϬϭϯͲϭϱ ϳй ϵй ϲй s' />z sk> ϬϬϬͿ ϭϲϯ ϭϱϵ ϭϲϭ ϭϱϯ ϭϱϵ ϭ ϲϭθ ϯ ϮϮϵ ϭϯϳ ϭϯϲ <>K' ϮϬϭϯͲϭϱ hw Kt sk>hd ϭ ϰ ϭ ϭ ϭ ϭ Ϭ ϵ Ϭ ϵ ϭθ Ϭ ϭ Ϭ Ϭ ϳ Ϭ ϳ Z Θ < s > ϯ ϰϰdž Ζϭϱ hd /^d Z d/' ϭϯ Ͳϱ Ϯ Ͳϵ ϰ ϭϱ Ϭ ϭϯ ϯϳ /s Z> ϭ ϱϱ ϭ ϯйͿ /s 'Z Zdнϱй ϭϵͿ Z > d/s ^dz 'd, ϴϱ ϴϭ ϴϮ ϳϴ ϳϲ ϳϰ ϳϲ ϳϱ ϳϲ d Ϭ ϱϯ ϲϲ ϬϬͿ >W, ͲϬ ϬϮ ͲϬ ϬϴͿ 'ZKhW Z < ϰ ϭϯ ϭϱ ϯϱ Ϯϴ ϯϯ ϯϯ ϳϴ ϰϱ ϮϬϭϱ DW>Kz ^ ϭϳ ϬϬϬ ϬйͿ >K' &ŝdžğěͿ WZ/ ϰϲϭ ϰϯϭ ϯθϭ ϯϰϭ ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ ϭϵϭ ϭϳϭ ϭϱϭ Improving /D and R/S rating ϭϯϭ ϭϯϭ ϭϭθ Ϭϭ ϭϭϭ нϯ ϬϬ Z> нϯ ϲϭй ϭϭϭ ϵϭ Source: Corporate Website ϴϬ 40-Week M ϳϬ 10-Week M ϲϭ ϳϲ Ͳ ϱϭ ϰϲ ϰϯ ϯθ ϯϰ M. Dias Branco (MDB.BR) is the leading producer of biscuits, cookies, and pasta in Brazil. Through its investments in marketing, the Company continues to improve volume growth and gain market share. Company Overview MDB is vertically integrated from the purchase of raw materials to manufacturing and distribution of branded products. MDB s distribution network includes 29 distribution centers located in 16 states, 427 owned vehicles, 3,200 third-party trucks, and more than 2,300 employees involved in distribution and logistics. In the cookies and biscuits segment, the Company is 4x larger than the second player (estle) in terms of market share. Q sales by segment: cookies and crackers, 55%; pasta, 21%; wheat flour and bran, 16%; margarine and vegetable shortening, 6%; others, 2%. Q sales by region: ortheast, 70%; Southeast, 16%; South, 6%; orth and all other, 8%. xports account for less than 1% of revenues. O eil Methodology Trading below its 50-DM, the stock is finding support at its 200-DM. We see next support at BR In the last five years, revenues have grown at an average of 9%. During the same period, PS has grown consistently (stability factor of 8) at 13%, generating an excellent PS Rank of 81. PS is expected to grow 15% and 14% in 2017 and 2018, y/y, respectively. ϯϭ Good /D rating Ϯϲ Ϯϰ ϮϮ ϮϬ ϭθ ϭϲ >/ sk>hd ϯ ϱd Ϯ ϱd ϭ ϱd нϯϱй ϰϰϭ ϴ< Ϯ&/ / >^ ^ĞƉ ϭϯ ϯ W^ Z>Ϳ ϭ Ϭϭ ĞĐ ϭϯ ϭ ϭϳ DĂƌ ϭϯ Ϭ ϵϱ :ƵŶ ϭϯ ϭ Ϯϲ ^ĞƉ ϭϯ ϭ Ϯϱ ĞĐ ϭϯ ϭ ϭϲ DĂƌ ϭϰ ϭ ϭϳ :ƵŶ ϭϰ ϭ Ϯϵ ^ĞƉ ϭϰ ϭ ϯϭ ĞĐ ϭϰ ϭ ϱϯ DĂƌ ϭϱ ϭ ϭϭ :ƵŶ ϭϱ ϭ ϲθ ^ĞƉ ϭϱ ϭ ϰϱ ĞĐ ϭϱ ϭ ϭϭ DĂƌ ϭϲ Ϭ ϴϰ :ƵŶ ϭϲ ϭ ϲϯ ^ĞƉ ϭϲ Ϯ ϯϵ ĞĐ ϭϲ Ϯ ϭϯğ DĂƌ ϭϳ ϭ ϱϯğ :ƵŶ ϭϳ Ϯ ϮϱĞ ^ĞƉ ϭϳ Ϯ ϰϰğ й W^ й, ' нϯϵй нϭϳй ϲ^ > ^ D/> Z>Ϳ ϵϯϲ ϲ ϵϭϵ ϴ й^ > ^ й, ' нϭϵй нϯϯй нϭй нϯϯй нϯϰй Ͳϭй нϯϯй нϯй нϱй нϯϭй Ͳϱй нϯϭй нϭϭй ͲϮϴй ͲϮϰй Ͳϯй нϲϱй нϵϰйğ нθϯйğ нϯθйğ нϯйğ ϭ Ϭϯϯ ϭ Ͳϰй ϭ ϭϯϰ ϰ Ϭй ϭ Ϯϲϱ ϭ нϰй ϭ ϭϵϵ ϲ нϯй ϭ ϭϱϯ ϴ нϭϯй ϭ ϯϯϲ ϴ нϭθй ϭ ϰϰϲ ϳ нϭϰй ϭ ϳϬϮ ϵğ нϰϯйğ ϳϮϭ ϬĞ ͲϯϴйĞ ϭ ϵϭϭ ϵğ нϰϯйğ Ϯ Ϭϳϵ ϭğ нϰϰйğ нϯϯ ϱй нϭθ ϯй Ͳϲ ϲй Ͳϴ ϯй нϯθ ϳй ϵϰθ ϰ нϭϳй ϭ Ϭϳϳ ϲ нϯϯй ϭ ϭϱϲ ϲ нϯϯй ϭ ϭϯϵ Ϭ нϯϯй ϭ Ϭϴϭ Ϭ нϭϰй ϭ ϭϯϭ ϴ нϰй ϭ Ϯϭϭ ϵ нϱй ϭ ϭϲϲ Ϯ нϯй й W^ й ^hzwz/^ Ϭ Ϭй нϭ ϯй ϵ&h ^ ϭϰϭ ϭϲϱ нϱ ϴй нϭϯ ϴй Ͳϰ ϯй Ͳϲ ϱй нϳ Ϭй Ͳϰ ϵй Ͳϲ ϱй нϭϭ ϳй ϭθϱ ϮϮϱ ϮϯϬ Ϯϳϭ ϮϵϮ Ϯϵϴ ϯϭϵ ϯϯϭ ϯϯϯ ϯϱϭ ϯϰϭ ϯϰϭ ϯϭϰ ϯϯϯ ϯϯϯ ϲ^, Z ^, > z &h ^ ϭϭd ϭϯd ϭϰd ϭϰd ϭϭd ϭϯd ϭϯd ϭϯd ϭϯd ϭϰd ϭϯd ϭϰd ϭϯd ϭϰd ϭϯd ϭϰd ϭϰd Π ϮϬϭϳ t/>>/ D KΖ /> н K / ĞĐ ϭϳ W ϮϬ ϮϬϭϳ Ɛƚ ϭϱ Ϭ ϮϵϮ ϬĞ ͲϴϯйĞ ϱͳljƌ,ŝőś Ϯϰ Ϭ ϱͳljƌ >Žǁ ϭϭ Ϭ ǀƐ /ŶĚ ǀŐ Ϭ ϵdž ϯϯϭ ϭϰd D ŝăɛ ƌăŷđž /ŶĚƵƐƚƌŝĂ KŶ D ZͿ tğğŭůlj ĂƐ ŽĨ tğě :ĂŶƵĂƌLJ Ϭϰ ϮϬϭϳ :ĂŶƵĂƌLJ Ϭϰ ϮϬϭϳ MDB s Q3 results were above expectations. Revenues increased 2% y/y to BR 1.5B on strong volume growth of 6.2% y/y, thanks to ramped-up efforts in marketing, sales, and logistics. BITD margin came in at 19.8%, compared with the record high of 21.7% in Q Growth Drivers MDB believes that its leading position is primarily attributable to: (i) the strength of its brand portfolio, which is recognized by consumers; (ii) high quality products and its wide scope to meet the need of various markets (from popular to premium); (iii) a distribution model that allows wide market penetration, especially within small- and medium-sized retail stores; (iv) production flexibility at a national level. Due to the difficult logistics in the ortheast region of the country, the Company faces minimal competition from other large players as most competitors are small and operate regionally. ooking Forward Management expects higher operating expenses to persist in the next quarters owing to investments in marketing campaigns, logistics, and warehousing. ccording to consensus estimates, revenues are expected to increase 5% in 2017 and 9% in 2018, annually. ext Catalyst: The Company s Q results due on March 2, ocal Code: BRMDI3 Bloomberg Symbol: MDI3:BZ ISI: BRMDICOR7

120 M Dias Branco Industria On BRZI M DIS BRCO IDUSTRI O (MDB.BR) BSP FOOD-GRI & RTD M M SHRS RIGS BUSISS: MGMT owns SC M DIS BRCO S IDUSTRI COMRCIO D IMTOS IS THROUGH ITGRTD D VRTIC PRODUCTIO PROCSS, PRIC = BRZI-BSD COMPY PRIMRIY GGD I TH FOOD PRODUCIG FOUR D VGTB FTS USD TO MUFCTUR 10 X PS PROCSSIG IDUSTRY. TH COMPY FOCUSS O BISCUITS D PSTS. TH COMPY'S BRD MS PORTFOIO IDUSTRIIZTIO, S D DISTRIBUTIO OF FOOD PRODUCTS ICUDS DRI, BSIR, BOSBOR, FORTZ, ISB, DRIVD FROM WHT, MIY BISCUITS, PSTS D WHT FOUR. PIR, PRDITO, RICHSTR, SSITO, TROSO, VITR ITS CTIVITIS SO ICUD TH MUFCTUR, S D D ZBT, MOG OTHRS. IT OWS UMBR OF PRODUCTIO DISTRIBUTIO OF VGTB FTS D MRGRIS, CKS, CK UITS D DISTRIBUTIO CTRS I BRZI. TH COMPY IS MIXS, PCKGD TOSTS D SCKS. TH COMPY OPRTS SUBSIDIRY OF DIBR FUDO D IVSTIMTO M PRTICIPCOS U W K Y PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP BR 19.54BI. SS BR5.45 BI BRZI PS RTIG 73 BR57.63(OH -2%) PRIC SC 220 Up 39.64% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(10 STBIITY) +8% % (8 STBIITY) +9% COMPOSIT RTIG IVT T/O 5x DBT % %: 10%: 7% %: 6%: 6% TX RT : : BCKOG X '16 BK.V R&D DIV 0.56(1.0%) DIV GR RT+11% (6) BT 0.64(14) PH 0.04(0.02) BRBOVS Global Focus M BR % /1 VOUM 7M 5M SP Q -49% BOW ST. PS (BR) % CHG SS(BI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 11.7% +20.0% % % 12.2% +20.0% % % 13.1% +19.5% % % 12.2% +18.7% % % 14.7% +19.6% % % 12.1% +18.6% % % 17.0% +19.4% % % 13.0% +19.1% % % 10.2% +17.2% % % 8.2% +15.8% % % 13.9% +15.2% / / / / / / / / / / /42112 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Staple: Food-Grain & Related % % 18.6% +17.2% /40872 SP % % 16.9% +19.4% % % 15.7% +21.1% % % 14.5% +20.8% / / / /37172 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 17.3% +19.5% 3M 2M 900 K DC Q % '13-18 P..'S OW OW HI ST DC 17 9X 18X 23X MR 18 TM DTGRPHS 2/2/2018

121 IDI dăƚă 'ůžďăů ĞǀĞƌĂŐĞƐ d / W^ Ϯϵ dž Ϯϳ ϱϵ Ϯϰ ϭϰ ϮϬ ϲϵ ϭϳ Ϯϰ ϭϱ ϴϲ ϭϰ ϰθ ϭϯ ϭϭ ϭϭ ϳϮ ϭϭ ϯϰ ϴ ϵϳ ϴ Ϯϴ ϳ ϱϵ нϵϭ ϴϬ ϲϳϭϳ ϭϯϭϭ W^ ZĂŶŬ ϲϲ Tata Global Beverages d/k > / / džđś / ϭϵϯ ϬϭϬϮϱ ƚăƚăőůžďăůďğǀğƌăőğɛ ĐŽŵ &ŽŽĚͲWĂĐŬĂŐĞĚ DŬƚ ĂƉ /Zϭϯϵ ϭϲ ^ĂůĞƐ /Zϲϳ ϰϵ <ŽůŬĂƚĂ / / /ŶĐ ϭϵϲϯ D'Dd ŽǁŶƐ d d '>K > s Z ' ^ >/D/d /^ s Z ' KDW z ' ' / d, dz /' WZK h d/k /^dz/ hd/k K& d K&& t d Z DKZ h > Ͳ D Z ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬϭϵ ƐƟŵĂƚĞ ϭϭ ϯϯ ϲ ϯϭ ϰ ϭϭ ϱ ϳϲ ϲ Ϭϯ ϳ ϳϳ ϯ ϵϯ ͲϬ Ϭϵ ϲ ϭϳ W^ /Z ϴ ϰϳ ϭϯй ϳ ϱϲ Ϯϯйź ^, &>Kt ^,Z /Z ϲ ϭϰ ϰ ϲϯ ϰ ϲϰ ϲ ϰϰ ϴ ϴϳ ϲ ϯϲ ϴ ϯθ ϲ ϮϬ ϵ ϰϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й Ϯϲй ϭϭй ϴй ϵй ϵй ϵй ϲй ϯй ϭϭй ϮϬϭϱͲϭϳ Ͳϳй Z dhz K Yh/dz й ϮϬй ϭϭй ϳй ϴй ϴй ϵй ϰй ϲй ϲй ϮϬϭϯͲϭϳ ͲϮй ^ > ^ й, ' ϭϭй ϭϵй ϯй ϭϭй ϭϯй ϱй ϯй Ͳϭϳй Ϯй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϰθ< ϱθ< ϲϭ< ϲϲ< ϳϰ< ϳϳ< ϴϬ< ϲϲ< ϲθ< /s d K ϯ ϲdž ϰϭ t <>z ^ĞƉ Ϭϭ ^ĞƉ Ϭϴ ^ĞƉ ϭϱ ^ĞƉ ϮϮ ^ĞƉ Ϯϵ KĐƚ Ϭϲ KĐƚ ϭϯ KĐƚ ϮϬ KĐƚ Ϯϳ d й ϮϬϭϱͲϭϳ ϭϲй ϴй ϳй d 'Z W, Z d/' ϳϮ ϳϯ ϳϰ ϳϯ ϳϮ ϳϱ ϳϯ ϳϮ ϳϱ d y Z d ϮϬϭϱͲϭϳ ϰϯй ϭϭθй ϯϭй s' />z sk> ϬϬϬͿ ϱ ϮϭϬ ϱ ϲϵϭ ϱ ϲϯϲ ϱ Ϯϳϱ ϱ Ϯϵϯ ϱ ϮϮϯ ϱ ϯϯθ ϱ ϯϱϲ ϱ ϯθϲ <>K' ϮϬϭϱͲϭϳ Ϭ ϭϭй < s > Ϯ ϭϭdž Ζϭϳ hw Kt sk>hd Ϯ Ϯ Ϯ ϱ Ϯ ϯ Ϯ Ϭ ϭ ϵ Ϯ Ϭ Ϯ ϭ Ϯ Ϭ Ϯ Ϭ Z Θ Ϯ ϯϱ ϭ ϭйͿ /s 'Z Zdнϭй ϭͿ hd /^d Z d/' ϱϱ ϲϯ ϲϭ ϱϯ ϱϯ ϱϭ ϱϭ ϰϰ ϱϳ /s /Z ϭ ϲθ ϯϲ ϬϬͿ >W, Ϭ Ϭϱ Ϭ ϬϮͿ Z > d/s ^dz 'd, ϴϮ ϴϱ ϴϰ ϴϮ ϴϱ ϴϰ ϴϭ ϳϵ ϴϱ d 'ZKhW Z < ϲϳ ϲϭ ϰϳ ϰϲ ϱϭ ϱϭ ϰϱ ϱϳ ϰϱ ϮϬϭϳ DW>Kz ^ Ϯ ϱϱϱ ϬйͿ Increasing cash flow/share and pretax margins ^ŚĂƌĞƐ ϲϯϭd &ůžăƚ ϯϲϲd W^ ƵĞ ϭϭ ϭϭ ϮϬϭϳĞ K, Ͳϭй Double digit consensus annual PS growth Tata Global Beverages (T.I) processes, markets, and distributes tea, coffee, water, and other products. The Company continues to grow through its strong branded tea business and new product launches in its growing tea and coffee segments. ϳϬϬ ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ Stock breaking out of flat base with support along the 10-Week M Huge demand for stock O eil Methodology The stock is trading constructively above its 50-DM and is currently extended. fter a turnaround in PS growth in FY 2017, Tata is expected to record annual bottom-line growth of 32% in FY 2018 and 15% in FY This should improve its current PS Rank of 49 significantly. In Q2 FY 2018, net sales increased 4% y/y to IR 16.9B. The tea and coffee businesses contributed 3.6% and 11.2%, y/y, respectively, to the Company s growth. BITD increased 15% y/y to IR 2.1B, while margin expanded 117bps to 12.6%. PS grew 13% y/y to IR 2.28B. ϯθϭ ϯϰϭ ϯϭϭ ϮϲϬ ϮϰϬ ϮϮϬ ϮϮϬ ϱϭ нϭϱ ϵϭ ϭϵϭ /Z нϳ ϳϳй ϭϳϭ ϱ ϭϳ ϭϱϭ ϰ ϰθ ϰ ϭϰ ϯ ϳϵ ϭϯϭ ϭϯϭ ϭϭϭ ϯ ϰϱ ϭϭϭ ϯ ϭϭ ϵϭ ϴϱ н Ϯ ϳϲ Ϯ ϰϭ ϴϬ ϳϬ Ϯ Ϭϳ ϲϭ ϭ ϳϮ ϭ ϱϵ R/S line at new high with best /D rating ϭ ϰϱ ϭ ϯϭ ϱϭ ϰϲ ϰϯ ϯθ ϭ ϭϳ ϯϰ ϭ Ϭϯ Company Overview Tata is the second-largest global player in the branded tea category, after Hindustan Unilever. In India, the Company ranks the first in the tea category. It is part of the diversified conglomerate Tata Group and is the holding company of Tata Coffee, with a 57% stake. The Company s branded business accounts for 87% of revenues, of which 81% is from tea, 18% is from coffee, and 1% is from water. Its brands have a presence in more than 40 countries. Its major brands include Tetley, Tata Tea, Himalayan, ight O Clock, and Grand. Q2 FY 2018 branded revenue by geography: South sia, 46%; U.S., Canada, and ustralia, 27%; M and frica, 26%; other, 1%. WZ/ ϴϬϬ ϲ ϱϱ ϲ ϱϭ ϱ ϴϲ Source: Corporate Website >K' &ŝdžğěͿ ϯϭ Huge increase in sponsorship Ϭ ϵϭ Ϯϲ >K' sk>hd ϯϭd Ϯϯ ϬD ϮϬD ͲϭϬй ϴD ϱd Ϯ&/ / >^ ĞĐ ϭϯ DĂƌ ϭϯ Ϯ W^ /ZͿ ϭ ϯϭ ϭ ϱϱ й W^ й, ' нϯϱй нϳϲй ϱ^ > ^ D/> /ZͿ ϭϵ ϭϭϰ ϯ ϭθ ϰϵϱ Ϭ й^ > ^ й, ' нϳй нϳй :ƵŶ ϭϯ ϭ ϴϭ ^ĞƉ ϭϯ Ϯ ϵϭ ĞĐ ϭϯ ϭ ϵϯ DĂƌ ϭϰ ϭ ϭϯ :ƵŶ ϭϰ ϭ ϱϰ ^ĞƉ ϭϰ Ϭ ϵϵ ĞĐ ϭϰ ϭ ϯϯ DĂƌ ϭϱ Ϭ Ϭϲ :ƵŶ ϭϱ ϭ ϭϰ ^ĞƉ ϭϱ ϭ Ϯϴ ĞĐ ϭϱ Ϭ ϵϯ DĂƌ ϭϲ Ͳϯ ϰϯ :ƵŶ ϭϲ ϭ ϲϰ ^ĞƉ ϭϲ Ϯ Ϭϭ ĞĐ ϭϲ Ϯ ϬϮ DĂƌ ϭϳ Ϭ ϱϭ :ƵŶ ϭϳ ϭ ϵϳ ^ĞƉ ϭϳ Ϯ ϭϭğ нϰϰй нϱϯй нϰθй ͲϮϴй Ͳϭϱй Ͳϲϲй Ͳϯϭй Ͳϵϱй ͲϮϲй нϯϵй Ͳϯϭй Ͳϱ ϴϬϬй нϰϰй нϱϳй нϭϯϭй нϭϭϱй нϯϭй нϰйğ ϮϬϭϴ Ɛƚ Ϯϵ Ϯ ϭθ ϭϯϰ ϲ нϱй ϭϵ ϯϯϰ ϴ нϰй ϮϬ ϴϬϳ ϰ нϵй ϭϵ Ϭϵϵ ϯ нϯй ϭϵ ϭϯϭ ϭ нϱй ϮϬ Ϯϭϳ Ϭ нϱй Ϯϭ ϰϭϭ Ϭ нϯй ϭϵ ϮϮϲ ϱ нϭй ϭϲ ϳϮϭ ϴ Ͳϭϯй ϭϲ ϲϵϰ ϱ Ͳϭϳй ϭϲ ϵϵϲ ϭ ͲϮϭй ϭϱ ϵθϯ ϱ Ͳϭϳй ϭϳ ϯϰϯ ϭ нϰй ϭϲ Ϯϱϵ ϳ Ͳϯй ϭϳ ϰϯθ ϲ нϯй ϭϲ ϳϰϮ ϲ нϱй ϭϳ Ϭϰϰ Ϯ ϭϲ ϴϮϬ ϳĞ ͲϮй нϯйğ ϮϬϭϵ Ɛƚ Ϯϲ Ϭ W^ й ^hzwz/^ ͲϮϮ ϰй Ϯ&h ^ ϭϭϱ ϭϭϭ Ͳϯϲ ϴй ϭϯϯ ϭϰϰ ϭϰϳ ϭϯϭ ϭϭϯ ϭϭϱ ϵϵ ϭϭϯ ϭϭϯ ϭϯϭ ϭϭϵ ϭϭθ ϵθ ϵϲ ϵϯ ϵϳ ϭϭϵ ϭϰϯ ϱ^, Z ^, > z &h ^ ϳϭD ϲϲd ϴϬD ϴϲD ϵϯd ϴϵD ϴϰD ϴϱD ϲϰd ϳϯD ϳϲD ϳϴD ϴϰD ϴϮD ϳϳD ϲθd ϳϱD ϴϭD ϵϭd ϭϯϭd Π ϮϬϭϳ t/>>/ D KΖ /> н K / нϯϭ ϯй нϭ ϲй ĞĐ ϭϳ DĂƌ ϭθ W ϯϭ ϱͳljƌ,ŝőś ϯϭθ ϱͳljƌ >Žǁ ϭϳ ǀƐ /ŶĚ ǀŐ ϭ ϰdž dăƚă 'ůžďăů ĞǀĞƌĂŐĞƐ d /Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ KĐƚŽďĞƌ Ϯϳ ϮϬϭϳ KĐƚŽďĞƌ Ϯϳ ϮϬϭϳ Growth Drivers Coffee penetration is just 21% in India, compared with 91% tea penetration. In 2012, Tata formed a JV with U.S.-based Starbucks to operate Starbucks stores in India. s of Q2 FY 2018, the JV has opened 100 stores in six metro cities. This growth comes on the back of rising disposable income, a young working population, and growing urbanization. Tata aims to become a key player in the packaged water segment. Fortified water is one of the fastest-growing beverage categories in the U.S. and international markets. Tata s JV with PepsiCo, called ourishco, will benefit from PepsiCo s distribution network, allowing it to capture untapped markets through its fortified water brand, Tata Water Plus. The Company commands a leading market share of 27% in the green tea segment in India and is expected to benefit from robust growth in the global green tea market. Green tea has a 27% share globally and is growing 10% annually. ooking Forward Tata s revenues are expected to grow 5% y/y in FY 2018 and 7% in FY 2019, compared with 2% y/y in FY The next catalyst is the Company s Q3 FY 2018 results on February 9, ocal Code: I:TTGOB Bloomberg Symbol: TGB:I ISI: I

122 Tata Global Beverages TT GOB BVRGS IDI (T.I) S BVRGS-O-COHOIC M M SHRS RIGS BUSISS: MGMT owns SC TT GOB BVRGS IMITD IS BVRG COMPY GGD VU DDD FORMS, D OTHRS, WHICH ICUDS S OF WTR PRIC = I TH TRDIG, PRODUCTIO D DISTRIBUTIO OF T, COFF PRODUCTS D OTHR BUSISSS. ITS TT T BRDS ICUD 10 X PS D WTR. TH COMPY'S PRICIP CTIVITIS ICUD TT T PRMIUM, TT T GOD, TT T IF, TT T PROCSSIG D BDIG OF T, ICUDIG MUFCTUR OF GI, TT T CHKR GOD, TT T K DV D TT ISTT T. TH COMPY'S SGMTS ICUD T, WHICH IS T GMII. IT HS BRDD BVRG BUSISS OPRTIOS GGD I TH CUTIVTIO, MUFCTUR, BDIG D S MIY I IDI, UROP, TH UITD STTS, CD D OF T I PCKT, BUK OR VU DDD FORMS; COFF D USTRI, PTTIO BUSISS I IDI/SRI K D OTHR PRODUC, WHICH IS GGD I TH CUTIVTIO OF COFF XTRCTIO BUSISS MIY I IDI, TH UITD STTS D D RTD PTTIO CROPS, D S OF COFF I VRIOUS CHI U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP IR BI. SS IR68.15 BI IDI PS RTIG IC IR274.85(OH -16%) Up 24.65% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % % COMPOSIT RTIG IVT T/O PRIC SC x 40 DBT % %: 8%: 7% 43%: : 30% TX RT : : BCKOG X '17 BK.V R&D 0.1% DIV 2.35(0.8%) DIV GR RT+1% (1) BT 1.83(26) PH 0.13(0.06) 0IBOM Global Focus M IR % B VOUM 30 M 20 M SP Q -46% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 5.7% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 3.6% +9.0% / /89206 DC 13 MR % % 5.1% /83470 JU % % 3.1% +5.8% /85190 SP % % 3.9% /64135 DC % % 0.2% +4.3% % % 4.3% % % 4.8% +4.1% % % 3.4% % +5.8% / / / / /82385 MR 15 JU 15 SP 15 DC 15 MR 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Staple: Beverages-on-lcoholic % % 6.0% 98/76596 JU % % 7.8% +1.2% /68368 SP % % 7.3% /74828 DC #+115% % 1.9% +6.2% /80669 MR % % 7.3% 108/90058 JU 17 +3% '13-18 P..'S OW 17X OW 31X HI 318X ST 146/122M SP 17 4M DC Q FOR IFORMTIO, C OR VISIT % % 8.5% +6.7% 10 M 7M DC 17 MR 18 TM DTGRPHS 2/2/2018

123 MYSI Ql Resources Source: Corporate Website Ql Resources QR.MY Food-Meat Products BURS MYSI xch Malaysia, Ringgits MktCap MYR3.93 Bil Sales MYR2.41 Bil Shares Bil Price= ql.com.my Shah lam, MYSI Inc 1997 MGMT owns Price 70eps PS Rank 88 Vol =4,091,500 Rate = + 141% MYR (OH 0%) Q RSOURCS BRHD IS MYSI-BSD COMPY GGD I IVSTMT HODIG D PROVISIO OF MGMT Scale 0.13 Increased estimates SRVICS. TH COMPY OPRTS I THR SGMTS: MRI-PRODUCTS MUFCTURIG, PM OI CTIVITIS D 8 ITGRTD IVSTOCK FRMIG. MRI PRODUCTS MUFCTURIG COSISTS OF UPSTRM D DOWSTRM CTIVITIS, o overhead ICUDIG FISHM, SURIMI, SURIMI-BSD PRODUCTS MUFCTURIG D DP S FISHIG. TH COMPY OPRTS I KPCOMP 7 MYSI, IDOSI, VITM D CHI. IT SO PRODUCS POUTRY GGS. TH COMPY IS GGD I PM OI FROM MIIG supply Mar Year nd stimate 2015 stimate PS % % 6 n Cash Flow/Shr MYR arnings Growth Rate Sales Gr Rt n Pretax Margin % % ( 5 Stability) 11% u Return On quity % % (19 Stability) 12% Breaks out of a Sales % Change Composite Rating l Sales (Mil) $ Inv t/o 7.5 X 65 consolidation on 2.1x 4.2 W Datagraph Global DG Rating Debt % % 38% 51% e vg Daily Vol (000) Tax Rate % 20% 21% the average daily 3.8 e Up Down Volume Backlog volume k ccum/dist Rating R and D 4.05 X '13 Bk Val 3.4 l Global Relative Relative Strength Str Div MYR 0.03(1.0%) Div Gr Rt 14%(6) y Group Global Rank Group Rank Beta 0.66(53) lpha 0.04(-0.07) Q Resources (QR) is a global company that farms and produces protein and food energy resources. The Company continues to grow by expanding its production facilities Week M 40-Week M 71 B R/S line near highs Company Overview QR operates through its three segments: integrated livestock farming (IF) 61%, marine products manufacturing (MPM) 26%, and palm oil activities (PO) 13%. The IF segment includes poultry farming, feedstuff trading, and consumer brands. The Company trades 4.5M poultry eggs per day and supplies them to the sian countries, including Hong Kong. The MPM segment includes surimi and fish meal processing, and deep sea fishing. QR is sia s largest manufacturer of surimi, producing 35,000 tons of the fish paste ingredient every year. It also makes 40,000 tons of surimi-based products, such as fish ball, annually. The PO segment includes milling, plantations, and biomass clean energy production. It owns a 1,200-hectare palm oil estate in Sabah, Malaysia; and a 20,000-hectare plantation in ast Kalimantan, Indonesia. Its FY 2017 revenue breakdown by geography: Malaysia 81%, Indonesia 16%, and Vietnam 3%. O eil Methodology From 2015 to 2017, QR s earnings have grown in a consistent manner at an average rate of 3% on the back of a 6% revenue growth. It has an above average PS Rank of 85. In Q4 FY 2017, the Company s revenues and net profit grew 6% and 24%, y/y, respectively. The revenue growth was impacted due to the lower contribution from surimi and fishmeal operations. However, its PO segment s revenues increased 45% y/y, mainly due to an increased contribution from its Indonesian palm oil unit PS (MYR) % Change Sales (Mil MYR) % Change Margin fter Tax Return on quity T4Q P ow-high Fund/Shares (000) 6/ % +23.0% /14M % +23.9% /16M % +22.5% /23M 2/ % +20.1% /28M 6.1% +19.4% /25M 7.7% +19.9% /28M 6.9% +19.1% /32M Jun Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 WOD Copyright 2014 William O'eil + Co.,Inc. ll rights reserved wonda@williamoneil.com % /33M % +16.8% /34M Solid PS and sales growth % +16.8% /34M % +16.0% /33M % +15.5% /37M % % 6.0% +15.3% /34M % % 7.0% +16.4% /30M % % 6.7% +17.2% /30M 138/ Volume 4,000,000 1,600, , , P s ow 9x ow 23x Hi 31x st. 0.0x s &p 2/28/2014 The stock is currently forming a flat base pattern for the past 13 weeks, trading along its 50-DM. Its RS Rating of 63 and /D Rating of B- are decent. Wait for a breakout above its pivot level of MYR 5. Growth Drivers In pril 2016, Q Resources forayed into the convenience store business; by partnering with FamilyMart, the second largest convenience store chain globally. It plans to set up 1,000 stores in Malaysia by The Company targets to have 300 FamilyMart stores in Malaysia in five years. By the end of 2018, the Company aims to double its current frozen fish and surimi-based products capacity to 50,000 metric tons/annum in its Hutan Melintang. The additional capacity will drive the top-line growth through higher export sales. The Company s total production is expected to increase by more than 200,000 metric tons per year, due to the establishment of the commercial feed mill in Bekasi, Indonesia. ooking Forward Consensus estimates have its PS growing by 6% and 18%, in 2017 and 2018, y/y, respectively. The next catalyst is its Q1 FY 2018 results due on ugust 28, ocal Code: 7084 Bloomberg Symbol: QG:MK ISI: MY7084OO006

124 Ql Resources MYSI Q RSOURCS KS (QR.MY) RIGS BUSISS: SC Q RSOURCS BRHD IS MUTITIO GRO-FOOD COMPY PRIC = THT FRMS D PRODUCS PROTI D FOOD RGY SOURCS. TH 10 X PS COMPY'S PRICIP CTIVITIS R ITGRTD IVSTOCK FRMIG, MRI PRODUCTS MUFCTURIG D PM OI CTIVITIS. TH COMPY OPRTS THROUGH THR SGMTS: MRI-PRODUCTS MUFCTURIG, PM OI D BIOMSS RGY 2.00 CTIVITIS, D ITGRTD IVSTOCK FRMIG. TH MRI-PRODUCTS MUFCTURIG SGMT ICUDS DP-S 1.90 FISHIG, MUFCTUR D S OF FISHM, SURIMI D U W K Y PS MYR (MR.) CF/SHR MYR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI MYR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOOD-MT PRODUCTS 1.62B M SHRS MGMT owns X-DIV FOT MKT CP MYR 7.84BI. SS MYR3.20 BI SURIMI-BSD PRODUCTS. ITS MRI-PRODUCT COSUMR FOODS BRDS, MUSHROOM D FIGO, R DISTRIBUTD CROSS SI, UROP D ORTH MRIC. TH PM OI D BIOMSS RGY CTIVITIS SGMT ICUDS PTTIO, CRUD PM OI MIIG D DOWSTRM PM BIOMSS TCHOOGY. TH ITGRTD IVSTOCK FRMIG SGMT ICUDS DISTRIBUTIO OF IM FD RW MTRIS, FOOD RTD PRODUCTS D IVSTOCK FRMIG. IT HS OPRTIOS I MYSI, IDOSI, VITM, CHI D SIGPOR. MYSI PS RTIG 90 IC 1997 MYR4.83(OH 0%) PRIC SC 24 Up 99.35% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(5 STBIITY) +7% %(6 STBIITY) +9% COMPOSIT RTIG IVT T/O 4.8x DBT % %: 19%: 20% %: 20%: 22% TX RT : : BCKOG X '17 BK.V R&D DIV 0.03(0.7%) DIV GR RT+9% (5) BT 0.25(0) PH 0.13(0.13) KPCOMP % Global Focus M MYR / /10 VOUM 5M 2M 800 K 400 K PS (MYR) % CHG SS(BI MYR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 6.7% +17.2% /36114 DC % % 6.4% +14.7% /41294 MR % % 6.2% +14.8% /47839 JU % % 7.3% +15.6% /58105 SP % % 7.6% +15.8% /70649 DC % % 7.2% +14.1% % % 6.2% +13.8% /76465 MR 15 76/83058 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Consumer Staple: Food-Meat Products % % 8.0% +14.2% /72824 SP % % 7.8% +13.6% /81661 DC % % 5.0% +12.7% /77123 MR % % 6.3% +12.3% /81971 JU % % 6.9% +11.9% /79223 SP % % 7.0% +11.3% /68042 DC % % 5.8% +11.7% /70025 MR % % 5.4% +11.4% /72298 JU 17 FOR IFORMTIO, C OR VISIT % % 7.4% +12.0% '13-18 P..'S OW OW HI ST 74/72370 SP 17 DC 17 18X 32X 31X MR 18 TM DTGRPHS 2/2/2018

125 BRZI ZĂŝĂ ƌžőăɛŝů KŶ Zϯ Z W^ ϰθ dž ϯ ϱϰ ϯ ϭϯ Ϯ ϳϭ Ϯ ϱϭ Ϯ Ϯϵ Ϯ Ϭϴ ϭ ϴϴ ϭ ϲϳ ϭ ϰϲ ϭ ϰϭ ϭ Ϯϱ ϭ Ϭϰ Ϭ ϵϲ Raia Drogasil On ^ K W h>k džđś ZZ > KZϬ нϱϱ ϭϭ ϯϳϲϵ ϱϲϳθ W^ ZĂŶŬ ϵϲ ZĞƚĂŝůͲ ƌƶő ^ƚžƌğɛ ƌăŝăěƌžőăɛŝů ĐŽŵ ďƌ DŬƚ ĂƉ Z>Ϯϱ ϳϰ ^ĂůĞƐ Z>ϭϮ Ϯϱ Z /> Z / ZK' ^/> ^ /^ Z />Ͳ ^ KDW z ' ' / Z d /> ^ > ^ K& D / d/k^ ^W / >dz D / / ^ W Z&hD Zz W Z^K > Z hdz WZK h d^ K^D d/ ^ ZDK K^D d/ ^ d, KDW zζ^ ^ > ^ Z ZZ/ Khd z Ks Z ϴϲϬ ^dkz ^ >K d / d, ^d d ^ K& ^ K W h>k D/ ^ ' Z /^ Z/K : /ZK W Z 'K/ ^ ^W/Z/dK ^ dk ^ d d Z/ Z/K 'Z K ^h>,/ D dk 'ZK^^K D dk 'ZK^^K K ^h> / d, /^dz/dk & Z > d, KDW z KW Z d ^ d,zkh', Z ' K& ^h ^/ / Z/ ^ ^h, ^ Z / ^ ϰͳ /K D / D dk^ ^ > ^^ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ Ϭ Ϯϵ Ϭ ϰϯ Ϭ ϱϭ Ϭ ϮϮ Ϭ ϯϯ Ϭ ϯϭ Ϭ ϲϳ ϭ Ϭϯ ϭ ϯϲ W^ Z> Ϯ ϭϳ ϯϭйź ϭ ϲϳ Ϯϯйź ^, &>Kt ^,Z Z> Ϭ ϰϯ Ϭ ϲϯ Ϭ ϳϬ Ϭ ϯθ Ϭ ϴϱ Ϭ ϵϲ ϭ ϯϵ ϭ ϴϱ Ϯ ϰϳ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϲй ϲй ϲй ϯй ϯй Ϯй ϰй ϱй ϱй ϮϬϭϱͲϭϳ ϱϲй ϭϰ ^ƚăďŝůŝƚljͿ Ϯϯй Z dhz K Yh/dz й ϭϰй ϮϬй ϭθй ϱй ϱй ϰй ϵй ϭϯй ϭϲй ϮϬϭϯͲϭϳ ϱϲй ϭθ ^ƚăďŝůŝƚljͿ Ϯϭй ^ > ^ й, ' ϱϭй ϯϳй ϭϳй ϯϲй ϵϳй ϭϲй ϭϵй ϮϬй Ϯϳй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ Z> ϭ ϮϲϬ ϭ ϳϮϭ Ϯ ϬϬϱ Ϯ ϳϮϵ ϱ ϯθϭ ϲ Ϯϯϯ ϳ ϯϵϯ ϴ ϴϵϴ ϭϭ< /s d K ϰ ϭdž ϯϲ t <>z ^ĞƉ Ϭϭ ^ĞƉ Ϭϴ ^ĞƉ ϭϱ ^ĞƉ ϮϮ ^ĞƉ Ϯϵ KĐƚ Ϭϲ KĐƚ ϭϯ KĐƚ ϮϬ KĐƚ Ϯϳ d й ϮϬϭϰͲϭϲ ϳй ϳй ϭϭй d 'Z W, Z d/' ϱϵ ϱθ ϲϰ ϱϵ ϲϭ ϲϭ ϲϯ ϲϭ ϲϯ d y Z d ϮϬϭϰͲϭϲ Ϯϳй ϮϮй Ϯϰй s' />z sk> ϬϬϬͿ ϵϯϯ ϵϯϲ ϵϰϳ ϵϭϱ ϵϭϰ ϵϯϯ ϵϭϰ ϵϯθ ϵϯθ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ Ϭ ϭ Ϯ ϭ ϯ ϭ Ϯ ϭ ϭ ϭ Ϯ ϭ ϯ ϭ ϯ ϭ ϰ Z Θ < s > ϴ ϲϳdž Ζϭϲ hd /^d Z d/' ͲϮ ϳ ϭϭ Ϯ ϵ Ϯϭ ϭθ ϭϯ ϭϰ /s Z> Ϭ ϱϵ Ϭ ϴйͿ /s 'Z Zdнϱϳй ϯϭͿ Z > d/s ^dz 'd, ϰϱ ϰϳ ϱϭ ϰϯ ϰϳ ϱϯ ϱϭ ϰϳ ϱϯ d Ϭ ϱϵ Ϯϱ ϬϬͿ >W, ͲϬ ϬϮ ͲϬ ϬϮͿ 'ZKhW Z < ϰϰ ϰϯ ϯϱ ϰϯ ϯθ ϯϳ ϰϳ ϰθ ϱϭ ϮϬϭϲ DW>Kz ^ Ϯϴ ϴϳϴ ϵйͿ strong PS rank ^ŚĂƌĞƐ ϯϯϭd &ůžăƚ ϮϱϰD W^ ƵĞ Ϯ ϮϬ ϮϬϭϴĞ K, Ͳϰй D'Dd ŽǁŶƐ ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϭ ϴϬ ϳϳ ϵϭ O eil Methodology The stock is showing strength out of a cup, with support along its rising 10-WM. We are bullish on the stock given its strong revenue and PS growth trends, supported by a large and growing market. The stock has a strong PS Rank of 96, /D Rating of B-, and Up/ Down Volume ratio of 1.4. Its RS Rating is weak given the strength of the equity market in Brazil. However, we expect its current rating of 51 to pick up on the back of recent earnings growth. Raia Drogasil is well-positioned to benefit from future growth in the Brazilian drugstore market. Such growth opportunities are reflected in the stock s 27% gain YTD, which follows a 72% gain in Growth Drivers The pharmaceutical market in Brazil is expected to grow by double digits for the next 15 years, as the country s population over 65 is set to grow from 16M in 2013 to 30M in 2028, a CGR of 4.2%. нϭ ϵϱй ϲϭ increasing accumulation support at rising 10-WM ϱϭ ϰϲ ϰϯ ϯθ Ϭ ϳϭ Company Overview Raia Drogasil is the fifth-largest retail group in Brazil, on the basis of 2016 gross revenue. mong drugstore chains, the Company, with its gross revenue of BR 11.8B, enjoys a lead of about BR 3.4B over its nearest rival. s of September 30, the Company had 1,554 stores in 19 states. Q revenue by segment: branded drugs, 45%; health and personal care, 25%; OTC, 18%; generics, 11%; services, 0.1%. Z> ϳϬ нϭ ϰϵ Ϭ ϳϵ Raia Drogasil S.. is the largest and one of the fastest-growing drugstores in Brazil. It is set to benefit from the growing Brazilian pharmaceutical market with its portfolio of strategically located outlets and cutting-edge CRM platforms. WZ/ ϭϳϭ Ϭ ϴϴ Source: Corporate Website >K' &ŝdžğěͿ Strong growth profile ϯϰ ϱϯ Ͳ Ϭ ϲϯ Ϭ ϱϰ Ϭ ϱϭ Ϭ ϰϲ ϯϭ Ϯϲ Ϯϰ ϮϮ Ϭ ϰϭ ϭϵ Ϭ ϯϱ ϭϳ Ϭ ϯϭ ϭϱ We expect relative strength to pick up following momentum from earnings Ϭ Ϯϳ Ϭ Ϯϱ Ϭ Ϯϯ Ϭ Ϯϭ ϭϯ ϭϯ ϭϭ ϭϭ Ϭ ϭϵ ϵ Ϭ ϭϳ ϴ Ϭ ϭϱ ϳ >K' sk>hd ϳD ϰ ϰd ϯd Ͳϯй ϮD Ϯ&/ / >^ ĞĐ ϭϯ ϭ W^ Z>Ϳ Ϭ ϬϬ DĂƌ ϭϯ Ϭ Ϭϰ :ƵŶ ϭϯ Ϭ ϭϯ ^ĞƉ ϭϯ Ϭ Ϭϲ й W^ й, ' нϭϭϭй Ͳϯϯй Ϯ^ > ^ D/> Z>Ϳ ϭ ϰϯϲ ϱ ϭ ϯθθ ϰ й^ > ^ й, ' нϯϳй нϭϯй ͲϮϬй Ͳϰϱй ĞĐ ϭϯ Ϭ Ϭϴ DĂƌ ϭϰ Ϭ Ϭϵ :ƵŶ ϭϰ Ϭ ϭϵ ^ĞƉ ϭϰ Ϭ Ϯϭ ĞĐ ϭϰ Ϭ ϭϵ DĂƌ ϭϱ Ϭ Ϯϭ :ƵŶ ϭϱ Ϭ ϯϯ ^ĞƉ ϭϱ Ϭ Ϯϲ ĞĐ ϭϱ Ϭ Ϯϯ DĂƌ ϭϲ Ϭ Ϯϳ :ƵŶ ϭϲ Ϭ ϰθ ^ĞƉ ϭϲ Ϭ ϯϱ ĞĐ ϭϲ Ϭ Ϯϲ DĂƌ ϭϳ Ϭ ϯϭ :ƵŶ ϭϳ Ϭ ϰθğ ^ĞƉ ϭϳ Ϭ ϰϭğ ĞĐ ϭϳ Ϭ ϰϭğ DĂƌ ϭθ Ϭ ϰϰğ нϭϯϱй нϱθй нϯϱϭй нϭϯθй нϭϯϯй нϳϰй нϯϰй нϯϭй нϯϵй нϰϱй нϯϱй нϭϯй нϭϱй ϬйĞ нϭϳйğ нϱθйğ нϰϯйğ ϮϬϭϳ Ɛƚ ϰϲ ϱϭ Ϯ ϳϴϯ Ϯ нϯϳй Ϯ ϵϭϭ ϵ нϯϳй ϯ Ϭϱϳ Ϭ нϯϰй ϯ Ϭϱϳ ϭ нϯϯй ϯ ϯϭϯ ϴĞ нϭϵйğ ϯ ϰϯϯ ϱğ нϭθйğ ϯ ϱϳϭ ϬĞ нϭϳйğ ϯ ϲϭϵ ϲğ нϭθйğ ϮϬϭϴ Ɛƚ ϯϱ ϴϳ ϭ ϱϯϵ Ϭ нϭϲй ϭ ϲϯϱ ϱ нϭϳй ϭ ϲθϭ Ϭ нϭθй ϭ ϲϱϭ ϲ нϭϵй ϭ ϳϴϭ ϰ нϭϲй ϭ ϵϭϭ ϯ нϭθй Ϯ Ϭϭϵ ϳ нϯϭй ϭ ϵϲϳ ϲ нϭϵй Ϯ ϭθϲ ϵ нϯϯй Ϯ Ϯϴϱ Ϯ нϯϭй Ϯ ϰϱθ ϯ нϯϯй Ϯ ϱϭϱ ϰ нϯθй й W^ й ^hzwz/^ ͲϮϰ Ϯй ͲϮϱ ϵй ϴ&h ^ ϯϭϯ ϯϯϯ Ͳϭϰ ϱй Ͳϱ Ϯй нϰϭ ϴй нϯϯ Ϭй нϭϳ ϵй нϯϵ ϰй нϭϯ ϵй нϰϰ ϲй нϭϯ ϰй нϭϯ ϵй нϳ ϭй нϯϰ ϰй ϯϭϵ Ϯϴϯ Ϯϴϴ ϯϭϱ ϯϯϯ ϯϰθ ϯθϳ ϰϭϱ ϰϱθ ϱϯϭ ϱϰϳ ϱϰϰ ϲϭϰ ϲϲθ ϲϵϯ ϳϳϰ ϳϴϳ ϳϳϬ ϳ^, Z ^, > z &h ^ ϴϮD ϴϳD ϴϱD ϳϵD ϵϭd ϵθd ϵϰd ϵϱd ϭϭϭd ϵϯd ϵϯd ϵϱd ϵϱd ϵϱd ϵθd ϭϭϯd ϭϭϲd ϭϯϯd ϭϯϰd ϭϯϰd нϳ ϳй Π ϮϬϭϳ t/>>/ D KΖ /> н K / ͲϬ ϲй W ϱϱ ϱͳljƌ,ŝőś ϵϲ Ϭ ϱͳljƌ >Žǁ ϯϭ Ϭ ǀƐ /ŶĚ ǀŐ ϯ Ϭdž ZĂŝĂ ƌžőăɛŝů KŶ Zϯ ZͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ KĐƚŽďĞƌ Ϯϳ ϮϬϭϳ Raia Drogasil is well-positioned to benefit from this opportunity with its network of more than 1,550 stores spread across 19 states, covering 93% of Brazil s population. key competitive advantage of Raia Drogasil is its portfolio of strategically located outlets, diligently selected through the use of analytics and decentralized surveys undertaken by professionals, each of whom have an experience of more than 15 years in retail operations. s a result, the Company has been able to more than triple its store count between 2006 and During this period, the Company s share of stores in the Brazilian drugstore market increased from 0.6% to 1.9%, while its revenue market share grew from 6.2% to 11.2%. With cutting-edge CRM platforms and the use of customer science, the Company has been able to up-sell and provide exclusive offers for its customers, driving sales growth. ooking Forward The Company is expected to add about 200 stores in ext Catalyst: The Company will report 2017 results on February 22, ocal Code: BRRD3 Bloomberg Symbol: RD3:BZ ISI: BRRDCOR0

126 Raia Drogasil On BRZI RI DROGSI O (DR3.BR) BSP RTI-DRUG STORS M M SHRS RIGS BUSISS: MGMT owns X-DIV SC RI DROGSI S IS BRZI-BSD COMPY GGD I RTI GRIS, RIO D JIRO, PR, GOIS, SPIRITO STO, ST PRIC = SS OF MDICTIOS, SPCITY MDICIS, PRFUMRY, CTRI, RIO GRD DO SU, BHI, MTO GROSSO D MTO 10 X PS PRSO CR D BUTY PRODUCTS, COSMTICS D GROSSO DO SU D I TH DISTRITO FDR. TH COMPY DRMOCOSMTICS. TH COMPY'S SS R CRRID OUT BY OVR OPRTS THROUGH RG OF SUBSIDIRIS, SUCH S RI S 860 STORS, OCTD I TH STTS OF SO PUO, MIS D 4-BIO MDICMTOS S U W K Y PS BR (DC.) CF/SHR BR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI BR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT 12/18/2017 CP BR 27.32BI. SS BR12.77 BI BRZI PS RTIG 85 BR82.68(OH -10%) 280 Up 7.14% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(10 STBIITY) +23% %(21 STBIITY) +21% COMPOSIT RTIG IVT T/O PRIC SC x DBT % %: 7%: 10% 27%: 22%: 24% TX RT : : BCKOG X '16 BK.V R&D DIV 0.59(0.7%) DIV GR RT+58% (31) 0.03(0.02) BT 0.53(19) PH BRBOVS Global Focus M BR % C VOUM 8M 6M SP Q -50% BOW ST. PS (BR) % CHG SS(BI BR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % 1.7% +4.4% % % 1.8% +5.0% % % 3.5% +5.9% % % 3.6% +7.9% % % 3.1% +9.2% % % 3.6% +10.8% % % 4.9% +12.6% % % 3.7% +13.0% % % 3.1% +13.3% % % 3.6% +14.0% % % 5.6% +15.4% / / / / / / / / / / /97145 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Retail: Retail-Drug Stores % % 4.0% +16.2% /103M SP % % 2.8% +16.1% /106M DC % % 3.4% /123M MR % % 4.2% /134M JU 17 FOR IFORMTIO, C OR VISIT % % 4.0% 736/134M DC Q % '13-18 P..'S OW OW HI ST SP 17 4M 3M 710/135M DC 17 29X 54X 96X MR 18 TM DTGRPHS 2/2/2018

127 SOUTH FRIC Clicks Group Source: Corporate Website Clicks Group is a leading beauty and pharmaceutical retailer in South frica. The Company s growth strategy is centered around its extensive retail footprint and its customer loyalty program. Company Overview Clicks Group operates 795 stores in Southern frica through its own brands Clicks and Musica and franchise brands GC, The Body Shop, and Claire s. Clicks is South frica s leading pharmacy, health, and beauty retailer with 622 stores and 473 in-store pharmacies. With its online sales platform, Clicks offers a click and collect facility in all stores across South frica. Musica is the largest music and entertainment-related merchandise retail brand in South frica. The Company owns South frica s leading full-range pharmaceutical wholesaler, United Pharmaceutical Distributors (UPD). s of FY 2017, UPD has a 26% share in the private pharmaceutical wholesale market. FY 2017 revenue by segment: retail, 61%; distribution, 39%. O eil Methodology The stock has been on an uptrend with consistent support at its rising 10-WM. Its momentum is reflected in its RS Rating of 82 while its /D Rating of B- and an Up/Down Volume ratio of 1.5 signal an appetite for the stock in the market. From FY , PS increased at a CGR of 15%, resulting in an PS Rank of 87. During this period, sales increased at a CGR of 12%. In FY 2017, turnover grew 11% y/y to ZR 26.8B, led by a 14% y/y increase in retail sales and an 11% y/y increase in the UPD business. Comparable store turnover increased 8%. Diluted headline PS came in at ZR 5.02, up 15% y/y. Clicks Group CSJ.Z Retail-Specialty JOHSBURG xch South frica, Rand Cents MktCap ZR16.13 Bil Sales ZR17.54 Bil Shares 246 Mil Price= Cape Town, SOUTH FRIC MGMT owns Price 20eps PS Rank 55 Vol =1,181,550 Rate = - 60% c (OH 0%) CICKS GROUP IMITD IS IVSTMT HODIG COMPY. TH COMPY'S SUBSIDIRIS COVR TH PHRMCUTIC SUPPY Scale CHI FROM WHOS D DISTRIBUTIO TO RTI PHRMCY, S W S BUTY D COSMTIC PRODUCTS. IT OPRTS PRIMRIY I SOUTHR FRIC. TH COMPY OPRTS I TWO SGMTS: RTI D DISTRIBUTIO. RTI COSISTS OF Good estimates o overhead supply 750 CICKS, SPCIIST HTH, BUTY D HOMWR RTIR; MUSIC, RTIR OF TRTIMT-RTD MRCHDIS; D TH BODY SHOP, WHICH SPCIIZS I TURY ISPIRD UXURY TOITRIS, COSMTICS, GIFTIG D GROOMIG, WITH ug Year nd stimate 2015 stimate PS % % 0RZCP n Cash Flow/Shr c arnings Growth Rate Sales Gr Rt 550 n Pretax Margin % % ( 2 Stability) 8% u Return On quity % % ( 4 Stability) 9% a Sales % Change Composite Rating 450 l Sales (Mil) $ Inv t/o 6.4 X W Global Datagraph DG Rating Debt % % 0% 0% 400 e vg Daily Vol (000) Tax Rate % 28% 28% Breaks out on 1.9x the 8000 e Up Down Volume Backlog k ccum/dist Rating R and D 11 X '13 Bk Val average daily volume 7000 l Global Relative Relative Strength Str Div c (2.6%) Div Gr Rt 52%(58) 300 y Group Global Rank Group Rank Beta 0.24(23) lpha 0.03(-0.03) 6000 High U/D volume Week M Week M B Rising R/S line Solid PS and 45 Increasing sponsorship900 revenue growth PS (c) % Change Sales (Mil ZR) % Change Margin fter Tax Return on quity T4Q P ow-high Fund/Shares (000) /16M S S 4.3% +50.0% /46M /61M S +22% S +14% 4.3% +57.9% /84M /89M S +17% S +4% 4.8% +61.8% /77M /70M ug Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 WOD Copyright 2014 William O'eil + Co.,Inc. ll rights reserved wonda@williamoneil.com S +7% S +7% 4.1% +63.0% /63M /61M S +12% S +7% 4.8% +59.5% /63M /69M S +10% S +6% 4.3% +61.3% /80M /82M S +10% S +22% 4.3% +55.1% /77M /80M Volume 5,000,000 1,800, ,000 ug S P s ow 11x ow 22x Hi 25x st. 0.0x s &p 3/31/2014 Growth Drivers Only 50% of South frican households have a Clicks store in a five-kilometer radius, and management sees potential to increase the number of stores from 622 currently to 900, enabling the Company to increase its retail pharmacy market share from 22% currently to 30%. Clicks ClubCard membership increased to 7M in FY 2017, up from 6.2M in FY The loyalty program, which contributed 77% of Clicks store sales in FY 2017, will enable direct marketing based on customer preferences. Management sees the opportunity to scale up UPD and is targeting to expand its market share to 30% from 26% at present. ooking Forward In FY 2018, the Company has planned for capex of ZR 680M for new Clicks stores, new pharmacies, 60 store refurbishments, Clicks Centurion distribution center expansion, and the UPD business. Management has guided for a medium-term RO target of 50 60%, compared with 44% at present. ext catalyst: The Company is expected to announce H1 FY 2018 results on pril 21, ocal Code: R:CS Bloomberg Symbol: CS:SJ ISI: Z

128 Clicks Group SOUTH FRIC CICKS GROUP (CSJ.Z) JS RTI-DRUG STORS M M SHRS RIGS BUSISS: MGMT owns SC CICKS GROUP IMITD IS RTI-D HTHCR COMPY. TH PRODUCTS. TH BODY SHOP SS TUR BUTY PRODUCTS. PRIC = COMPY OPRTS THROUGH TWO SGMTS: RTI D CIR'S IS TH SPCITY RTIR OF FSHIOB JWRY 10 X PS DISTRIBUTIO. THROUGH RTI BRDS, SUCH S CICKS, GC, D CCSSORIS FOR YOUG WOM D GIRS. MUSIC IS TH BODY SHOP, CIR'S D MUSIC, IT HS OVR 690 STORS RTIR OF MUSIC D RTD TRTIMT MRCHDIS I CROSS SOUTHR FRIC. CICKS IS PHRMCY, HTH D TH COUTRY. IT OFFRS RG OF TRTIMT PRODUCTS, BUTY RTIR WITH OVR 500 STORS D PPROXIMTY 400 ICUDIG DIGIT VIDO DISCS (MUSIC D MOVIS), GMIG I-STOR DISPSRIS. GC IS TH SPCITY HTH D (ICUDIG COMPUTR GMS), TCHOOGY D CCSSORIS 6000 WSS RTIR. GC OFFRS RG OF VITMI, MIR (HDPHOS PORTB SPKRS, PHO D TBT COVRS, D HRB SUPPMTS, SPORTS UTRITIO D SIMMIG DOCKIG STTIOS D TBTS) U W K Y PS c (UG.) CF/SHR c PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI ZR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP ZR 40.46BI. SS ZR26.81 BI SOUTH FRIC PS RTIG 89 ZX16449(OH -15%) Up % Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(1 STBIITY) +11% %(1 STBIITY) +12% COMPOSIT RTIG IVT T/O 5.9x DBT % %: 0%: 0% %: 28%: 28% TX RT : : BCKOG X '17 BK.V R&D 322(2.0%) DIV GR RT+17% (3) DIV BT 0.37(11) PH 0.09(0.07) RZCP % Global Focus M ZR D VOUM 10 M 6M 4M 2M UG S PS (ZR) % CHG SS(BI ZR) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) S +10% S +10% 4.2% +58.7% S +25% S +9% 4.8% +58.7% S +15% S +11% S +17% S +15% S +16% S S S S S +14% 4.1% +59.3% % 4.5% +53.3% % 4.2% +57.0% % 4.8% +49.0% % 4.4% +50.5% / / / / / / / / / / /80750 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Retail: Retail-Drug Stores 213/83115 SP S +19% +13% 5.1% +44.4% 200/ / / /91214 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT S '13-18 P..'S OW OW HI ST DC 17 16X 31X 28X MR 18 TM DTGRPHS 2/2/2018

129 TURKY ŝŵ ŝƌůğɛŝŭ DĂŐĂnjĂůĂƌ D/ dz W^ ϯϯ dž ϴ ϭϯ ϳ ϱϭ ϲ ϴϴ ϱ ϵϰ ϱ ϯϭ ϰ ϲϵ ϰ Ϭϲ ϯ ϳϱ ϯ ϰϰ ϯ ϭϯ Ϯ ϴϭ Source: Corporate Website Ϯ ϱϭ Ϯ ϯϯ Ϯ ϭϵ нϵϭ Ϯϭϲ ϱϲϰ Ϭϯ Ϭϯ W^ ZĂŶŬ ϵϭ Bim Birlesik Magazalar /^d h> džđś dz /DDϬϬϬϭϴ ďŝŵ ĐŽŵ ƚƌ y /s ϭϭ ϴ ϮϬϭϳ ZĞƚĂŝůͲ ŝɛđžƶŷƚθsăƌŝğƚlj DŬƚ ĂƉ dzzϯϭ ϱϯ ^ĂůĞƐ dzzϯϭ ϵϳ dhz< z /ŶĐ ϭϵϵϱ D'Dd ŽǁŶƐ ^ŚĂƌĞƐ ϯϭϰd &ůžăƚ ϮϮϴD W^ ƵĞ ϴ Ϯϯ ϮϬϭϳĞ Consensus PS estimates revised higher /D /Z> ^/< D ' > Z ^ /^ dhz< zͳ ^ KDW z t,/, /^ ' ' / d, KW Z d/k K& Z d /> ^dkz ^ d,zkh', /d^ Z d /> ^,KW^ / dhz< z d, KDW z ^ >>^ ^^KZdD d K& WWZKy/D d >z ϲϭϭ /d D^ / >h /' hd Z K& WZ/s d > >^ d, KDW z K&& Z^ Z ' K& K^hD Z ^/ &KK /d D^ K^hD Z 'KK ^ /D /Z> ^/< D ' > Z ^Ζ^ WZK h d^ / >h d > s/^/k^ KK</' W ^ dkz^ D d WZK h d^ Z <& ^d /Zz WZK h d^ s Z ' ^ > 'hd ^ < Zz ^ <^ ^t d^ &Zh/d^ s ' d > ^ &ZK &KK > /' ^hww>/ ^ DK' Kd, Z^ d, KDW zζ^ ^h ^/ / Z/ ^ Z /D ^dkz ^ >> ^ / 'zwd /D ^dkz ^ ^ Z> ^ /^ DKZK K Kd, ' ' / d,, Z /^ Khd Z d /> ^ dkz > ^^ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ Ϭ ϯϳ Ϭ ϳϬ Ϭ ϴϭ Ϭ ϵθ ϭ Ϭϵ ϭ ϯϲ ϭ ϯϭ ϭ ϵϯ Ϯ ϮϮ ϯ ϬϮ ϭϱйÿ Ϯ ϲϯ ϭθйÿ W^ dzz ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z dzz Ϭ ϱϯ Ϭ ϵϯ ϭ Ϭϰ ϭ Ϯϲ ϭ ϰϭ ϭ ϳϱ ϭ ϳϳ Ϯ ϱϰ ϯ Ϭϴ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϵй WZ d y D Z'/ й ϯй ϱй ϱй ϱй ϰй ϰй ϰй ϰй ϰй ϮϬϭϱͲϭϳ Ϯϯй ϳ ^ƚăďŝůŝƚljͿ ϮϬй Z dhz K Yh/dz й ϰϵй ϲϱй ϱϱй ϱϰй ϰϲй ϰϲй ϯϳй ϰϭй ϯθй ϮϬϭϯͲϭϳ ϭθй ϳ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϰϯй Ϯϱй Ϯϯй Ϯϱй Ϯϭй ϮϬй ϮϮй Ϯϭй ϭϱй KDW Z d/' ^ > ^ D/>Ϳ dzz ϰ ϮϰϮ ϱ ϯϯϯ ϲ ϱϳϰ ϴ ϭθϵ ϵ ϵϭϲ ϭϯ< ϭϰ< ϭϳ< ϮϬ< /s d K ϭϲdž ϴϭ t <>z DĂLJ ϭϵ DĂLJ Ϯϲ :ƵŶ ϬϮ :ƵŶ Ϭϵ :ƵŶ ϭϲ :ƵŶ Ϯϯ :ƵŶ ϯϭ :Ƶů Ϭϳ :Ƶů ϭϰ d й ϮϬϭϰͲϭϲ Ϭй Ϭй Ϭй d 'Z W, Z d/' ϲϯ ϲϲ ϲϯ ϲϭ ϲθ ϲϯ ϲϰ ϲϳ ϲθ d y Z d ϮϬϭϰͲϭϲ Ϯϯй ϮϮй Ϯϭй s' />z sk> ϬϬϬͿ ϲϱϰ ϲϱϯ ϲϯϯ ϲϯϯ ϲϯϭ ϲϭϯ ϲϭϵ ϲϭϲ ϲϭϯ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϴ Ϯ ϯ Ϯ ϭ ϭ ϴ Ϯ ϭ ϭ ϵ ϭ ϴ ϭ ϵ Ϯ Ϭ Z Θ < s > ϭϭ ϱϭdž Ζϭϲ hd /^d Z d/' Ϯϴ ϯϰ ϯϯ ϯϰ ϮϮ ϮϮ Ϯϵ Ϯϱ ϰϱ /s dzz ϭ ϱϭ Ϯ ϯйͿ /s 'Z Zdнϭϱй ϭϳͿ Z > d/s ^dz 'd, ϱϯ ϱϰ ϱϲ ϱϭ ϱϯ ϱϯ ϱϲ ϱϯ ϱϱ d Ϭ ϲϯ ϮϮ ϬϬͿ >W, Ϭ ϬϬ Ϭ ϬϬͿ 'ZKhW Z < ϯϭ ϯϭ ϯϭ ϯϭ Ϯϴ Ϯϯ Ϯϴ Ϯϰ Ϯϳ ϮϬϭϲ DW>Kz ^ ϯϱ ϱϭϭ ϭϯйͿ K, Ϭй Company Overview BIM, the pioneer of hard-discount retail in Turkey, operates 6,672 stores (BIM Turkey: 6,000, BIM Morocco: 374, BIM gypt: 261, and FI: 37) as of September. The Company has an assortment of about 700 products, including private labels under the brands Daghan, Tombik, KRM, Teatone Ice Tea, and Pasta Veneta, among others. O eil Methodology The stock is currently in a buy range after breaking out from a six-week flat base and remains actionable. We expect it to continue its strong momentum on the back of better-thanexpected Q results. The stock is displaying technical strength, with an RS Rating of 77 and an /D Rating of B+. It has support at its rising 10-WM. BIM has a history of consistent revenue and PS growth, averaging 19% and 18%, respectively, over the past three years. It has a strong PS Rank of 91. In Q3 2017, the Company s revenue grew 24% y/y to TRY 6.3B, versus consensus estimates of 22% and revised management guidance of 20 23% given at the end of Q BIM Turkey F sales grew 12.1% y/y, driven by a 10.7% y/y increase in F basket and a 1.3% increase in F customer traffic. The number of stores increased 12% y/y to 6,672. PS was TRY 0.75, up 33% y/y and ahead of consensus estimates of 19% y/y growth. WZ/ ϮϲϬ ϮϰϬ ϮϮϬ Strong history of generating PS and rev growth ϭϵϭ ϭϳϭ Consolidating over prior high with support at rising 10-WM. Stock is showing strength into new highs ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϭ ϴϬ ϳϬ Strong PS rank ϲϳ ϲϭ ϭ ϴϴ ϲϭ нϯ ϮϬ ϭ ϱϲ ϭ ϰϰ ϱϭ ϰϲ ϭ ϯϭ ϰϯ ϭ ϭϵ Bim Birlesik Magazalar (BIM) is a discount food retailer based in Turkey, offering high-quality products at affordable prices. The Company aims to grow faster than the market through competitively priced products enabled by low-cost operations. >K' &ŝdžğěͿ dzz нϰ ϵϳй ϯθ ϭ Ϭϲ ϯϰ ϱϱ Ϭ ϵϰ ϯϭ Ϭ ϴϭ Ϭ ϳϱ Ϭ ϲϵ Ϯϲ Ϯϰ ϮϮ Ϭ ϱϵ ϭϵ Ϭ ϱϯ ϭϳ Stock is underperforming market in Turkey, but accumulation is picking up Ϭ ϰϳ Ϭ ϰϭ Ϭ ϯθ Ϭ ϯϰ ϭϱ ϭϯ ϭϯ ϭϭ Ϭ ϯϭ ϭϭ Ϭ Ϯϴ ϵ >K' sk>hd ϱd Ϯ ϴD ϮD Ͳϭй ϳϬϬ< ϯϭϭ< Ϯ&/ / >^ ĞĐ ϭϯ DĂƌ ϭϯ ϵ W^ dzzͿ Ϭ Ϯϴ Ϭ ϯϯ й W^ й, ' нθй нϳй ϴ^ > ^ D/> dzzͿ Ϯ ϱθϭ ϳ Ϯ ϳϵϱ ϱ й^ > ^ й, ' нϭϳй нϭϱй :ƵŶ ϭϯ Ϭ ϯϭ нϯϱй ^ĞƉ ϭϯ Ϭ ϯϵ нϯϵй ĞĐ ϭϯ Ϭ ϯϱ нϯϱй DĂƌ ϭϰ Ϭ ϯϱ нϵй :ƵŶ ϭϰ Ϭ ϯϭ Ͳϯй ^ĞƉ ϭϰ Ϭ ϯθ Ͳϯй ĞĐ ϭϰ Ϭ Ϯϳ ͲϮϯй DĂƌ ϭϱ Ϭ ϰϭ нϭϳй :ƵŶ ϭϱ Ϭ ϰϵ нϲϯй ^ĞƉ ϭϱ Ϭ ϱϲ нϰϳй ĞĐ ϭϱ Ϭ ϰϲ нϳϭй DĂƌ ϭϲ Ϭ ϱϯ нϯϵй :ƵŶ ϭϲ Ϭ ϰϳ Ͳϰй ^ĞƉ ϭϲ Ϭ ϱϳ нϯй ĞĐ ϭϲ Ϭ ϲϰ нϯϵй DĂƌ ϭϳ Ϭ ϲϱ нϯϯй :ƵŶ ϭϳ Ϭ ϲϭğ нϯϭйğ ^ĞƉ ϭϳ Ϭ ϲϱğ нϭϰйğ ĞĐ ϭϳ Ϭ ϲθğ нϲйğ DĂƌ ϭθ Ϭ ϱϭğ ͲϮϯйĞ ϰ ϴϭϬ ϴ нϭθй ϰ ϵϳϭ Ϯ нϭϰй ϱ Ϭϱϲ Ϭ нϭϰй ϱ Ϯϯϯ ϳ нϭϱй ϱ ϳϬϲ ϲ нϭϵй ϱ ϵϲϱ ϱğ нϯϭйğ ϲ ϭϭϳ ϴĞ нϯϭйğ ϲ Ϯϵϲ ϳĞ нϯϭйğ ϲ ϳϲϵ ϯğ нϭϵйğ нϯϭ ϱй ϰϭθ ϰϭϳ ϰϭϰ ϳϳD ϳϴD ϳϴD Ϯ ϴϯϯ ϲ нϯϭй ϯ Ϭϴϳ ϲ нϯϭй ϯ ϭϯϯ Ϯ нϯϭй ϯ ϯϵϱ ϭ нϯϭй ϯ ϱϲϭ Ϭ нϯϲй ϯ ϳϱϮ ϳ нϯϯй ϯ ϳϱϰ Ϯ нϯϭй ϰ Ϭϵϰ Ϯ нϯϭй ϰ ϯϱϭ ϭ нϯϯй ϰ ϰϰϳ ϲ нϭϵй ϰ ϱϯϱ ϲ нϯϭй Ͳϴ ϴй Ϯϴϭ нϭ Ϭй ϮϵϬ нϯϯ ϭй Ϯϳϱ нϲ ϰй Ϯϴϴ ϯϭϲ Ͳϭϵ ϭй ϯϯϭ нϯ ϴй ϯϰϭ Ͳϯϭ ϯй ϯϯθ нϰ ϭй ϯϰϯ нϰϭ Ϯй ϯϯϭ нϭϲ ϴй ϯϱϯ нϵ ϵй ϯϲϱ ϰϭϱ ϰϭϯ ͲϮϮ Ϭй ϰϭθ ϭ^, Z ^, > z &h ^ ϳϰD ϳϰD ϳϴD ϳϳD ϳϴD ϳϴD ϳϴD ϴϬD ϳϵD ϳϵD ϴϰD ϴϯD ϳϵD ϳϯD ϳϯD ϳϳD й W^ й ^hzwz/^ нϭ ϰй ϴ&h ^ Ϯϳϵ Π ϮϬϭϳ t/>>/ D KΖ /> н K / W Ϯϴ ϮϬϭϳ Ɛƚ Ϯϱ ϴ ϮϬϭϴ Ɛƚ ϮϮ ϰ ϱͳljƌ,ŝőś ϰϯ ϱͳljƌ >Žǁ Ϯϭ ǀƐ /ŶĚ ǀŐ ϭ Ϯdž ŝŵ ŝƌůğɛŝŭ DĂŐĂnjĂůĂƌ D/ dzͿ tğğŭůlj ĂƐ ŽĨ &ƌŝ :ƵůLJ ϭϰ ϮϬϭϳ Growth Drivers BIM sells a narrow range of about 700 SKUs (mainly essential items), of which 68% are private labels. Private labels are typically 30 40% cheaper than well-known brands, driving traffic into BIM stores. In addition to private labels, the Company is able to offer discount prices by keeping store decorations minimal, displaying products in their original cardboard boxes, and renting the most affordable locations. Food retail remains highly fragmented in Turkey, with organized retail accounting for less than a 50% share of the market. There is still plenty of room for organized food retail to grow in Turkey, given that it has about 90% share in many developed countries. ooking Forward For 2017, management maintained its guidance for revenue growth of 20 23% y/y and BITD margin of %. The Company plans to add 635 new stores (500 BIM Turkey stores, 25 FI stores, and 60 and 50 stores in Morocco and gypt, respectively) in In 9M 2017, 398 BIM Turkey stores, 16 FI stores, and 45 and 46 stores in Morocco and gypt, respectively, have been added. ext catalyst: The Company releases 2017 results on March 12, ocal Code: TR:BIMS Bloomberg Symbol: BIMS:TI ISI: TRBIMM00018

130 Bim Birlesik Magazalar BIM BIRSIK MGZR TURKY (BMI.TR) IST RTI-DISCOUT&VRITY M M SHRS RIGS BUSISS: MGMT owns X-DIV SC BIM BIRSIK MGZR S IS TURKY-BSD COMPY, WHICH PRODUCTS, BRKFST D DIRY PRODUCTS, BVRGS, GUMS PRIC = IS GGD I TH OPRTIO OF RTI STORS. THROUGH ITS D BKRY, SCKS D SWTS, FRUITS D VGTBS, FROZ 10 X PS RTI SHOPS I TURKY, TH COMPY SS SSORTMT OF FOOD D CIG SUPPIS, MOG OTHRS. TH COMPY'S PPROXIMTY 600 ITMS, ICUDIG UMBR OF PRIVT SUBSIDIRIS R: BIM STORS C, BSD I GYPT D BIM BS. TH COMPY OFFRS RG OF COSUMR BSIC FOOD STORS SR, BSD IS MOROCCO, BOTH GGD I TH HRD ITMS D COSUMR GOODS. BIM BIRSIK MGZR S'S DISCOUT RTI SCTOR PRODUCTS ICUD: TVISIOS, COOKIG PS, TOYS, MT U W K Y PS TRY (DC.) CF/SHR TRY PRTX MRGI, % RT. O QUITY, % SS % CHG SS (TRI TRY) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP TRY 22.47BI. SS TRY23.42 BI TURKY PS RTIG IC TRY74.00(OH -10%) Up 9.47% Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(5 STBIITY) +18% %(7 STBIITY) +20% COMPOSIT RTIG IVT T/O PRIC SC x DBT % %: 0%: 0% 23%: 22%: 21% TX RT : : BCKOG X '16 BK.V R&D 1.5(2.0%) DIV GR RT+15% (17) DIV BT 0.38(7) PH 0.10(0.07) TKT Global Focus M TRY B VOUM 6M 3M 2M SP Q -45% BOW ST. PS (TRY) % CHG SS(BI TRY) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 3.4% +46.0% % % 3.2% % % 2.5% +46.4% % % 3.1% +40.7% % % 2.2% +36.7% % % 3.0% +35.1% % % 3.4% +41.1% % % 3.8% +40.3% % % 3.1% +41.3% % % 3.4% +40.5% % % 2.9% +42.6% / / / / / / / / / / /72676 DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Retail: Retail-Discount&Variety % % 3.4% +38.4% /75809 SP % % 3.7% +37.5% % % 3.5% +36.0% % % 3.5% +44.5% / / / /77599 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 3.6% +43.0% 1M 600 K DC Q % '13-18 P..'S OW OW HI ST DC 17 20X 29X 41X MR 18 TM DTGRPHS 2/2/2018

131 IDI ǀĞŶƵĞ ^ƵƉĞƌŵĂƌƚƐ ^ / W^ ϴϴ dž ϰϯ ϭθ ϯθ ϲϰ ϯϰ Ϭϵ Ϯϵ ϱϱ Ϯϳ Ϯϳ Ϯϱ ϬϬ Ϯϭ ϱϵ ϭϵ ϯϯ ϭϳ Ϭϱ ϭϰ ϳϳ ϭϯ ϲϰ ϭϯ ϱϭ Source: Corporate Website venue Supermarts d/k > / / džđś / ϭϵϯzϭϭϭϭϭ нϵϭ ϮϮ ϯϯϰϭ ϬϱϬϬ W^ ZĂŶŬ ϵϳ ZĞƚĂŝůͲ^ƵƉĞƌ DŝŶŝ DŬƚƐ DŬƚ ĂƉ /ZϱϮϰ Ϯϲ ^ĂůĞƐ /Zϭϭϴ ϵθ / / /ŶĐ ϮϬϬϬ ^ŚĂƌĞƐ ϲϯϰd &ůžăƚ ϲϯϰd K, Ͳϭй D'Dd ŽǁŶƐ >K' &ŝdžğěͿ ϯϰϭϭ ϯϭϭϭ ϮϲϬϬ ϮϰϬϬ ϮϮϬϬ Strong growth profile ϭϵϭϭ ϭϳϭϭ ϭϱϭϭ ϭϯϭϭ ϭϯϭϭ ϭϭϭϭ ϭϭ ϯϲ ϭϭϭϭ ϭϭ Ϯϯ ϵϭϭ ϴϰϬ Ϭϱ ϴϬϬ ϵ Ϭϵ ϴ ϰϵ ϳ ϵϱ Strong industry group нϯϰ ϵϱ ϳϬϬ ϴϭ н ϲ ϴϮ Company Overview venue Supermarts follows a cluster-based approach to store expansion and opening new stores near existing ones and distribution centers. The Company has a higher operating efficiency than its peers as it has been able to reduce transportation costs and realize economies of scale. The Company operates 141 DMart stores in 10 states and two union territories across India, and has a network of 21 distribution and six packing centers. FY 2017 revenue breakdown: food, 54%; general merchandise and apparel, 26%; non-food (FMCG), 20%. O eil Methodology The stock is currently trading in a cup with-handle. Investors can add to positions once the stock takes the pivot level of IR 1, on high volume. RS Rating of 73, Up/Down volume ratio of 1.8, and /D Rating of +. From FY 2015 to FY 2017, the Company reported revenue and PS CGR of 36% and 58%, respectively. The stock s PS Rank currently stands at 97. For Q3 FY 2018, revenue came in at IR 40.95B (+22.6% y/y). Diluted PS for the quarter came in at IR 3.97 (+47% y/y). /Z нϯ Ϭϲй ϲϭϭ ϱ ϲθ ϱ Ϯϯ ϱϭϭ ϰϲϭ ϰ ϳϳ ϰϯϭ ϰ ϯϯ ϯθϭ ϯ ϴϲ ϯϰϭ ϯ ϰϭ venue Supermarts (S.I) is the second-largest food and grocery retailer in India, operating hybrid supermarkets. The Company is targeting to increase sales through its veryday ow Prices, enabled by its low cost operations. WZ/ ϯθϭϭ s h ^hw ZD Zd^ >/D/d /^ / / Ͳ ^ KDW z t,/, Kt^ KW Z d ^ D Zd ^dkz ^ D Zd /^ ^hw ZD Z< d, / d, d K&& Z^ h^dkd Z^ Z ' K&,KD W Z^K > WZK h d^ h Z K ZKK&, D Zd ^dkz ^dk <^,KD hd/>/dz WZK h d^ / >h /' &KK dk/> dz/ ^ hdz WZK h d^ ' ZD d^ </d, t Z d, >/,KD WW>/ ^ Kd, Z^ d, KDW z K&& Z^ /d^ WZK h d^ h Z s Z/Kh^ d 'KZ/ ^ ^h, ^ d, /Zz &ZK &Zh/d^ s ' d > ^ ZK < Zz dkz^ ' D ^ </ ^ WW Z > > / ^ ' ZD d^ WW Z > &KZ D,KD W Z^K > Z />z ^^ d/ >^ 'ZK Zz ^d W> ^ D Zd Z ^ D Zd, ^ WZ ^ / Ks Z ϭϭϭ >K d/k^ ZK^^ D, Z ^,dz 'h: Z d,z WZ ^, D,z WZ ^, < Z d < d > ',, dd/^' Z, d, KDW z, ^ Dh>d/W> ^dkz ^ / /d/ ^ ^h, ^ DhD /,D ZK ' >hzh,z Z Wh ^hz d > ^^ h > Ͳ D Z ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬϭϵ ƐƟŵĂƚĞ ϭ ϭϵ ϭ ϳϰ Ϯ ϵϲ ϯ ϴϳ ϱ ϳϬ ϴ ϰϵ W^ /Z ϭϯ ϮϮ ϰϰйÿ ϭϲ ϯϭ ϯϯйÿ ^, &>Kt ^,Z /Z ϭ ϵϱ Ϯ ϴϬ ϰ ϭϲ ϱ ϳϭ ϳ ϰϱ ϭϭ ϳϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϰй ϰй ϱй ϱй ϲй ϲй ϮϬϭϱͲϭϳ ϱϯй ϰ ^ƚăďŝůŝƚljͿ ϯϲй Z dhz K Yh/dz й ϭϯй ϭϵй ϮϬй Ϯϰй ϭθй ϮϬϭϯͲϭϳ ϱϯй ϰ ^ƚăďŝůŝƚljͿ ϯϳй ^ > ^ й, ' ϱϭй ϰϭй ϯϳй ϯϯй ϯϵй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϮϮ< ϯϯ< ϰϳ< ϲϰ< ϴϲ< ϭϭϵ< /s d K ϭϯ ϱdž ϴϭ t <>z DĂLJ ϭϯ DĂLJ ϭϵ DĂLJ Ϯϲ :ƵŶ ϬϮ :ƵŶ Ϭϵ :ƵŶ ϭϲ :ƵŶ Ϯϯ :ƵŶ ϯϭ :Ƶů Ϭϯ d й ϮϬϭϱͲϭϳ ϲϭй ϲϭй Ϯϲй d 'Z W, Z d/' ϱϭ ϱϵ ϱϰ ϱϰ ϲϭ ϲϭ ϱθ ϲϲ ϲθ d y Z d ϮϬϭϱͲϭϳ ϯϰй ϯϱй ϯϲй s' />z sk> ϬϬϬͿ ϰ Ϭϴϭ ϰ Ϯϱϯ ϰ ϯϭϰ ϰ ϯϵϭ Ϯ ϳϲϯ Ϯ Ϯϯϰ Ϯ ϭϰϲ ϭ ϯϵϯ ϭ ϭϭϳ <>K' ϮϬϭϱͲϭϳ < s > ϭϯ Ϯϰdž Ζϭϳ hw Kt sk>hd Ϭ ϱ Ϭ ϱ Ϭ ϱ Ϭ ϱ ϭ ϯ Ϯ ϲ Ϯ ϴ ϭ ϰ ϭ ϱ Z Θ ŽŶĞ /s 'Z Zd hd /^d Z d/' ϱϭ ϱϱ ϲϭ ϲϭ ϱθ ϱθ /s /Z Ϭ ϭϭ Ϭ ϬϬͿ >W, Ϭ ϯϯ Ϭ ϭϰͿ Z > d/s ^dz 'd, ϭ ϭ ϭ ϭ ϭ ϭ ϭ ϳϳ ϳϵ d 'ZKhW Z < ϭϯϯ ϭθ ϰϲ ϯϱ ϭϯ ϵ ϭϭ ϭϯ ϭϭ ϯϭϭ RS line breaking out to new highs. Strong /D Ϯ ϵϱ Ϯ ϳϯ Ϯ ϱϭ ϮϲϬ ϮϰϬ ϮϮϬ Ϯ ϭϲ ϭϵϭ ϭ ϵϯ ϭϳϭ ϭ ϳϬ ϭϱϭ ϭ ϰθ ϭϯϭ >K' sk>hd ϱϭd ϯϭd ϭϭd ϱd нϱϯй ϭ ϲd DĂƌ ϭϯ &/ / >^ Ϭ ϵϳ W^ /ZͿ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ W^ й, ' ϮϮ Ϭϴϱ ϲ ^ > ^ D/> /ZͿ DĂƌ ϭϯ ϭ ϱϭ нϱϱй ϯϯ ϰϭθ ϱ нϱϭй ^ > ^ й, ' :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϭϰ Ϯ ϱϵ нϳϯй ϰϲ ϴϲϰ ϵ нϰϭй :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ DĂƌ ϭϱ ϯ ϯϵ нϯϭй :ƵŶ ϭϱ ^ĞƉ ϭϱ ϲϰ ϯϵϰ ϯ нϯϳй W^ й ^hzwz/^ &h ^ ĞĐ ϭϱ DĂƌ ϭϲ ϱ ϳϬ нϲθй ϴϱ ϴϯϳ ϲ нϯϯй :ƵŶ ϭϲ ^ĞƉ ϭϲ ĞĐ ϭϲ DĂƌ ϭϳ ϴ ϰϵ нϰϵй ϭϭθ ϵϳϳ Ϭ нϯϵй :ƵŶ ϭϳ W ϵϲ ϮϬϭϴ Ɛƚ ϲθ ϳ ϮϬϭϵ Ɛƚ ϱϭ ϱ ϱͳljƌ,ŝőś ϳϳ ϱͳljƌ >Žǁ ϲϲ ϲϵ ϭϵ Ϭϯϵ ϲϯθ ^, Z ^, > z &h ^ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ǀƐ /ŶĚ ǀŐ ϰ ϭdž ǀĞŶƵĞ ^ƵƉĞƌŵĂƌƚƐ ^ /Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ :ƵůLJ Ϭϯ ϮϬϭϳ Growth Drivers venue Supermarts has strong supplier relationships and procures goods directly from manufacturers and vendors. These strong relationships and an efficient operating strategy allow the Company to offer goods at lower prices than its peers. The Company added five new stores in Q3 FY 2018 (10 in 9M FY 2018) and plans to add stores per year, largely in the Central and Western South of India. The Company operates on a self-funded land ownership model, as opposed to the rental model used by its peers. It saves on rental costs, which accounts for 3-8% of the total expenses of its peers. The Company s board approved the acquisition of the remaining 50.79% stake in its associate company venue -Commerce for IR 492.1M. The deal is expected to be completed by February 15. ooking Forward ext Catalyst: The Company s Q4 FY 2018 earnings release on May ocal Code: I:DMRT Bloomberg Symbol: DMRT:I ISI: I192R01011

132 venue Supermarts IDI VU SUPRMRTS (S.I) S RIGS BUSISS: SC VU SUPRMRTS IMITD IS IDI-BSD COMPY, WHICH PRIC = OWS D OPRTS DMRT STORS. DMRT IS SUPRMRKT CHI 10 X PS THT OFFRS CUSTOMRS RG OF HOM D PRSO PRODUCTS UDR O ROOF. CH DMRT STOR STOCKS HOM UTIITY PRODUCTS, ICUDIG FOOD, TOITRIS, BUTY PRODUCTS, 360 GRMTS, KITCHWR, BD D BTH I, HOM PPICS 340 D OTHRS. TH COMPY OFFRS ITS PRODUCTS UDR VRIOUS CTGORIS, SUCH S BD D BTH, DIRY D FROZ, FRUITS U W K Y 2009 PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK RTI-SUPR/MII MKTS M M SHRS MGMT owns X-DIV FOT MKT CP D VGTBS, CROCKRY, TOYS D GMS, KIDS PPR, DIS GRMTS, PPR FOR M, HOM D PRSO CR, DIY SSTIS, GROCRY D STPS, D DMRT BRDS. DMRT HS PRSC I OVR 110 OCTIOS CROSS MHRSHTR, GUJRT, DHR PRDSH, MDHY PRDSH, KRTK, TG D CHHTTISGRH. TH COMPY HS MUTIP STORS I CITIS, SUCH S MUMBI, HMDBD, BROD, BGURU, HYDRBD, PU D SURT IR BI. SS IR BI IDI PS RTIG IC IR1135(OH -11%) PRIC SC 4000 Up 35.12% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(4 STBIITY) +36% %(5 STBIITY) +37% COMPOSIT RTIG IVT T/O 12.1x DBT % %: 63%: 30% 34%: 35%: 36% TX RT : : BCKOG X '17 BK.V R&D 0(0.0%) DIV GR RT DIV BT 1.12(9) PH 0.18(0.09) IBOM Global Focus M IR % CURRT 8.49 VOUM 30 M 20 M 10 M 6M 3M JU Q PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX RTUR O QUITY T4Q % % % % 3.4% +18.4% +37% 3.3% +19.7% +33% 3.7% +23.7% % % 4.0% P OW-HIGH /20123 FUD/SHRS (000) DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Retail: Retail-Super/Mini Mkts SP 15 DC 15 MR 16 JU 16 SP 16 DC 16 MR '13-18 P..'S /27586 JU 17 FOR IFORMTIO, C OR VISIT OW 65X OW 132X HI 143X ST /34385 SP /34501 DC 17 MR 18 TM DTGRPHS 2/2/2018

133 THID ŶĞƌŐLJ ďɛžůƶƚğ W^ ϱθ dž ϭ Ϯϭ ϭ Ϭϯ Ϭ ϵϰ Ϭ ϴϲ Ϭ ϳϵ Ϭ ϳϮ Ϭ ϲϲ Ϭ ϱϵ Ϭ ϱϯ nergy bsolute d, /> džđś d,ϯϱϰϱϭϭϭϭϭϯ нϲϲ ϮϮ ϰθϯϰθθ W^ ZĂŶŬ ϵϳ ŶĞƌŐLJͲ ůƚğƌŷăɵǀğ KƚŚĞƌ ĞŶĞƌŐLJĂďƐŽůƵƚĞ ĐŽ ƚś DŬƚ ĂƉ d, ϭϭϯ ϳϲ ^ĂůĞƐ d, ϭϭ ϲϭ ĂŶŐŬŽŬ d, /> Z'z ^K>hd Wh >/ KDW z >/D/d /^ d, /> Ͳ ^ KDW z ' ' / d, Z t > Z'z h^/ ^^ ^ d, KDW z D / h^/ ^^ ^ / >h /K / ^ > WKt Z W> d^ DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ Ϭ ϬϬ Ϭ ϬϮ Ϭ Ϭϭ Ϭ ϬϮ Ϭ Ϭϯ Ϭ Ϭϳ Ϭ ϰϯ Ϭ ϳϮ Ϭ ϴϳ ϭ Ϯϱ ϰϰйź ϭ ϲϰ ϯϭйź W^ d, ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z d, Ϭ Ϭϭ Ϭ Ϭϯ Ϭ Ϭϳ Ϭ Ϭϰ Ϭ Ϭϯ Ϭ ϭϯ Ϭ ϱϰ Ϭ ϵϯ ϭ Ϯϭ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ϯϲй WZ d y D Z'/ й ϭй Ϯй ϭй ϭй Ϯй ϳй ϮϮй ϯϭй ϯϭй ϮϬϭϱͲϭϳ ϲϰй ϭθ ^ƚăďŝůŝƚljͿ Ϯϴй Z dhz K Yh/dz й ϱй ϭϱй ϲй ϴй ϭϭй ϭϭй ϯϭй ϯϳй ϯϯй ϮϬϭϯͲϭϳ ϭϱϯй ϰϵ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϱϯϲй Ϯϳй Ϯй ϭϭϵй Ͳϭϳй Ͳϭϭй ϵϯй Ϯϭй ϭϯй KDW Z d/' ^ > ^ D/>Ϳ d, ϭ ϵϳϭ Ϯ ϱϭϯ Ϯ ϱϱϳ ϱ ϯϰϱ ϰ ϰϰϭ ϯ ϵϯϲ ϳ ϱθϯ ϵ ϭϵϳ ϭϭ< /s d K Ϯϱdž ϴϮ t <>z Ɖƌ Ϯϭ Ɖƌ Ϯϴ DĂLJ Ϭϱ DĂLJ ϭϯ DĂLJ ϭϵ DĂLJ Ϯϲ :ƵŶ ϬϮ :ƵŶ Ϭϵ :ƵŶ ϭϯ d й ϮϬϭϰͲϭϲ ϭθϯй ϮϮϴй ϮϮϲй d 'Z W, Z d/' ϱϳ ϱϰ ϱϲ ϲϯ ϲϳ ϲϵ ϳϬ ϲθ ϳϬ d y Z d ϮϬϭϰͲϭϲ ϭ ϯй ϭй s' />z sk> ϬϬϬͿ ϰ ϵϲϱ ϯ ϲϭϱ ϯ ϭϯϵ ϯ ϯϲϵ ϯ ϯϯϯ ϯ ϱθϯ ϯ ϴϲϭ ϯ ϴϯϲ ϯ ϴϲϲ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϯ Ϯ Ϯ ϲ Ϯ ϱ ϯ ϳ Ϯ ϵ ϯ ϭ ϯ ϳ ϯ ϴ ϯ ϴ Z Θ < s > ϵ ϵϵdž Ζϭϲ hd /^d Z d/' ϰθ ϱϭ ϱϰ ϲϭ ϱϭ ϱϰ ϱθ ϲϭ ϲϭ /s d, Ϭ ϭϱ Ϭ ϱйͿ /s 'Z Zd Z > d/s ^dz 'd, ϲϯ ϱϳ ϲϰ ϴϵ ϴϮ ϴϰ ϴϰ ϴϱ ϴϰ d Ϭ ϵϵ ϭϭ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϬϲͿ 'ZKhW Z < ϳϮ ϳϭ ϲϯ ϲϰ ϰϳ ϰϰ ϯϯ ϯϲ ϯϭ ϮϬϭϲ DW>Kz ^ ϭϵϭ ϬйͿ Ϭ ϰϱ Ϭ ϰϭ Ϭ ϯθ Strong earnings profile Ϭ ϯϯ ^ŚĂƌĞƐ ϯ ϳϯϬ &ůžăƚ Ϯ ϴϳϮ W^ ƵĞ ϴ ϭϭ ϮϬϭϳĞ K, Ͳϯй Strong estimates D'Dd ŽǁŶƐ nergy bsolute (P.TH) is one of the leading biodiesel producers and the largest renewable energy company in Thailand. It is expected to benefit from the growing renewable energy business. Company Overview P is one of the top-three producers of biodiesel and the largest renewable energy company in Thailand. It has a total contract capacity comprising of solar (278 MW) and wind energy (126 MW), for a total of 404MW as of September The Company s revenue mix as of September 2017: power generation, 60%; biodiesel, 37%; other, 3%. O eil Methodology The stock is moving along its 10-WM in an uptrend and has been setting new resistance levels. PS grew an average of 39% over the last three years, driven by 16% average sales growth. Over the period, through full-year 2016, margins have grown from 22% to 31%. The Company s PS Rank stands at 95. For stocks with market cap greater than $1B, its 33% trailing Q RO was the best among all energy companies in Thailand and the second-best among all alternative energy companies globally. Q revenues and net profit grew 22% and 36%, y/y, respectively. Revenue growth was driven by strong performance from the power generation segment. The more profitable renewable energy businesses should drive outstanding earnings growth for the next several years. Growth Drivers The Company has a project pipeline addition of about 260 MW, totaling 664 MW for WZ/ ϳϬ ϲϭ Trading near all time highs ϱϭ ϰϲ ϰϯ ϯθ ϯϰ Good growth rates ϯϭ ϱϭ ϯϭ d, Ϭ ϬϬϬ Ϯϲ Ϭ ϬϬй Ϯϰ ϮϮ Improving /D rating, 3.8x up/down volume ϴϰ н Ϭ Ϯϵ Source: Corporate Website >K' &ŝdžğěͿ ϭϵ ϭϳ Ϭ Ϯϲ ϭϱ Ϭ ϮϮ Ϭ Ϯϭ Ϭ ϭϵ ϭϯ ϭϯ ϭϭ 40-Week M Ϭ ϭϳ R/S line at highs with best /D rating Ϭ ϭϲ Ϭ ϭϰ ϭϭ ϵ ϴ Ϭ ϭϯ ϳ Ϭ ϭϭ ϲ 10-Week M Ϭ Ϭϴϲ Ϭ Ϭϳϵ ϱ ϰ ϲ Ϭ ϬϳϮ ϰ Ϯ Ϭ Ϭϲϱ ϯ ϴ Ϭ Ϭϱϴ ϯ ϰ Ϭ Ϭϱϭ ϯ Ϭ Ϭϰϰ Ϯ ϲ >/ sk>hd ϭ ϭ ϵϭϭd ϳϬϬD ϱϭϭd ϯϭϭd Ͳϭϱй Ϯ ϴD ϭ&/ / >^ DĂƌ ϭϯ Ϭ W^ d, Ϳ Ϭ Ϭϭ :ƵŶ ϭϯ Ϭ Ϭϭ ͲϱϬй W^ й, ' ϰ^ > ^ D/> d, Ϳ ^ > ^ й, ' W^ й ^hzwz/^ ^ĞƉ ϭϯ Ϭ ϬϬ ĞĐ ϭϯ Ϭ Ϭϭ нϭϭϭй ϯ ϲϰϳ ϭ нϭϵϲй DĂƌ ϭϯ Ϭ ϬϮ :ƵŶ ϭϯ Ϭ ϬϮ нϭϭϭй нϭϭϭй ϵϱϱ ϱ ϳϵϵ ϳ ϴϳϭ ϭ ĞĐ ϭϯ Ϭ Ϭϯ DĂƌ ϭϰ Ϭ ϭϯ :ƵŶ ϭϰ Ϭ ϭϭ ^ĞƉ ϭϰ Ϭ ϭϭ ĞĐ ϭϰ Ϭ ϭϭ DĂƌ ϭϱ Ϭ ϭϲ :ƵŶ ϭϱ Ϭ ϮϬ ^ĞƉ ϭϱ Ϭ ϭϵ ĞĐ ϭϱ Ϭ ϭϳ DĂƌ ϭϲ Ϭ ϭϵ :ƵŶ ϭϲ Ϭ Ϯϳ ^ĞƉ ϭϲ Ϭ ϭϵ ĞĐ ϭϲ Ϭ ϮϮ DĂƌ ϭϳ Ϭ Ϯϲ нϯϭϭй нϱϭϭй нϰϱϭй нϵϭϭй нϯϯϯй нϯϯй нθϯй нϵϭй нϳϭй нϭϵй нϯϱй Ϭй нϯϵй нϯϳй ϮϬϭϳ Ɛƚ Ϯϰ ϰϭ ϭ ϳϵϮ ϱ нϭϯϰй ϭ ϴϱϭ Ϯ нϭϭϯй ϭ ϴϱϬ ϵ нϱθй Ϯ ϬϬϯ ϵ Ͳϰй Ϯ ϱϭϯ ϱ нϰϭй Ϯ Ϯϳϱ ϲ нϯϯй Ϯ ϰϭϰ ϰ нϯϭй Ϯ ϰϯϲ Ϯ нϯϯй ϯ ϭϯϯ ϲ нϯϱй Ϯ ϱϰϱ ϱ нϭϯй Ϯ Ϯϳϴ ϭ Ͳϲй Ϯ ϲϰϱ ϲ нϵй ϮϬϭϴ Ɛƚ ϭθ ϱϱ ϮϮ ϯϭ Ͳϱ ϵй ϯθ ϰϱ нϱ ϲй ϱϵ ϱϭ ϱϯ ϱϯ ϲϯ Ͳϰ ϰй ϳϭ ϲϱ ϭϯd ϳ ϭϵϭ ϭϭϭ ϭϭd ϭϯd ϭϰd ϭϱd ϮϴD ϮϰD ϭϵd ϯϭd ϰϳd ϰϳd ϭ ϭϳϯ Ϯ Ͳϲϴй Ϯ Ϭϴϴ ϰ нϭϭϵй нϱϭ Ϭй ϯϭ ϭϵd ϭϰ Ϯϯ нϭϲϭ Ϭй Ϯϵ ϭϭϲ ϱϭϭ ϲ ϴϰϵ ϴϳϱ ϭϵd ϮϯD ϭ &h ^ ^, Z ^, > z &h ^ ^ĞƉ ϭϯ Ϭ Ϭϭ Π ϮϬϭϳ t/>>/ D KΖ /> н K / Ϯϵ :ƵŶ ϭϳ W ϯϯ ϱͳljƌ,ŝőś Ϯϭϲ Ϭ ϱͳljƌ >Žǁ Ϯϱ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϯdž ŶĞƌŐLJ ďɛžůƶƚğ W d,Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ :ƵŶĞ ϭϯ ϮϬϭϳ Ĩ DŽŶ :ƵŶĞ ϭϯ ϮϬϭϳ Improvements in wind and solar farm technologies have lowered the cost of installation. The cost to construct solar farms in Thailand dropped to THB 50M per MW from THB 120M per MW five years ago. Operationally, power production has expanded 17-19%, exceeding the expectations of 10-15%. P entered the energy storage business with a 35.2% stake acquisition in Taiwan-based mita Technologies, an R&D firm and lithium-ion battery manufacturer, in ovember The energy storage and electric vehicle (S/V) business is among the 10 businesses the government is currently promoting under its economic policy. ooking Forward The first phase of annual production is expected to reach 1 GWH and cost about THB 3B. The Company is targeting a very ambitious goal of 50 GWH by 2020, which, if achieved, would rival Tesla s goal of 35 GWH at its evada Gigafactory. The other benefit of entering the S/V/battery market is that the batteries can be used in R power plants to store overproduced electricity. This could add revenues to P s solar and wind plants. ext Catalyst: The Company s Q earnings are expected to be released on February 26, ocal Code: TH: Bloomberg Symbol: :TB ISI: TH

134 nergy bsolute THID RGY BSOUT BKK (P.TH) RGY-TRTIV/OTHR 3.73B 3.73B SHRS RIGS BUSISS: MGMT owns SC RGY BSOUT PUBIC COMPY IMITD IS THID-BSD PROVIDS COSUTTIO I TH PROJCT RGRDIG TRTIV PRIC = COMPY GGD I TH RWB RGY BUSISSS. TH CTRIC RGY. 10 X PS COMPY MUFCTURS D DISTRIBUTS MTHY STR BIODIS PRODUCTS, HIGH SPD DIS OI D PUR GYCRI PRODUCTS; GRTS CTRICITY FROM SOR D WID POWR, D U W K Y PS THB (DC.) CF/SHR THB PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI THB) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP THB BI. SS THB10.95 BI THID PS RTIG 94 THB65.00(OH -8%) 140 Up % Since ddition STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT % (9 STBIITY) +16% %(52 STBIITY) +33% COMPOSIT RTIG IVT T/O PRIC SC BGKST 25x 80 DBT % %: 228%: 226% 1%: 1%: TX RT : : BCKOG X '16 BK.V R&D DIV 0.15(0.2%) DIV GR RT 0.28(0.12) BT 1.71(8) PH % Global Focus M THB B VOUM 200 M 100 M 40 M 20 M 10 M PS (THB) % CHG SS(BI THB) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 8.2% +9.7% /23393 DC % % 22.0% +14.2% /18728 MR % % 22.8% +21.1% /12115 JU % % 20.1% +27.3% /7190 SP % % 19.8% +31.3% /10082 DC % % 28.9% +30.6% % % 29.6% +33.5% /13306 MR 15 45/13574 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. nergy: nergy-lternative/other % % 31.4% +35.9% /14769 SP % % 26.9% +37.3% /26733 DC % % 29.2% +35.9% /22202 MR % % 31.7% +36.1% /18664 JU % % 28.2% +33.3% /56658 SP % % 36.4% +32.7% /155M DC % % 37.0% +32.6% /185M MR % % 32.9% +30.9% /210M JU 17 FOR IFORMTIO, C OR VISIT % % 31.5% +30.8% '13-18 P..'S OW 24X OW 42X HI 215X ST 108/213M SP 17 DC 17 MR 18 TM DTGRPHS 2/2/2018

135 THID ĐƉŐ W' d, W^ ϭϭ dž ϲ ϯϲ ϱ ϰϱ ϰ ϱϱ ϰ ϭθ ϯ ϴϮ ϯ ϰϱ Source: Corporate Website BCPG (BCPG.TH) is one of the leading companies in Thailand, which generates and supplies electricity produced from renewable energy. The Company is expected to benefit from increasing solar project pipelines. Company Overview BCPG is one of the largest solar power generators in Thailand, operating solar power portfolios in Thailand (182 MW) and Japan (236 MW). BCPG aims to attain 1 GW of renewable energy by In the solar segment, the Company currently has a total contracted capacity of 130 MW in Thailand and 194 MW in Japan, of which 164MW is under development. O eil Methodology The stock has been moving sideways since Q results were announced. It is currently testing its 50-DM. While its PS Rank is low at 27, it is expected to further improve with expansions into geothermal and wind energy. PS is expected to grow 19% y/y in Consensus estimates have revenues growing 15% and 13%, y/y, respectively, in 2017 and In Q3 2017, operating revenues and net profit increased 9% and 43%, y/y, respectively. Revenue growth was primarily driven by the commencement of solar power plants in Thailand and Japan. The Company s profit after adjusting for foreign exchange impact grew 82% y/y. Growth Drivers The Company s Thailand plants qualify for the THB 8/KWh adder program for 10 years from their respective commercial operation dates and board of investment tax-free privilege for the first eight years and 50% tax exemption for the following five years. In October 2017, BCPG signed a memorandum of understanding with Sansiri to commence the first smart green energy community in Thailand, with more than 20 projects in the pipeline. The Company s solar power plants in Thailand qualify for the THB 8/KWh adder program, valid for 10 years from their respective commercial operation dates. ϯ Ϭϵ Ϯ ϳϯ d, /> džđś d,ϳϰϭϭϭϭϭϭϭϱ нϲϲ Ϯϯ ϯϱθϵϵϵ W^ ZĂŶŬ Ϯϰ Bcpg ŶĞƌŐLJͲ ůƚğƌŷăɵǀğ KƚŚĞƌ ďđɖőőƌžƶɖ ĐŽŵ DŬƚ ĂƉ d, ϯϭ ϴϳ ^ĂůĞƐ d, ϯ Ϯϯ ĂŶŐŬŽŬ d, /> /ŶĐ ϮϬϭϱ ^ŚĂƌĞƐ ϭ ϵϵϭ &ůžăƚ ϱϵϳd W^ ƵĞ ŝŷ ϳϱ ĂLJƐ ĞͿ K, Ͳϰй D'Dd ŽǁŶƐ >K' &ŝdžğěͿ W' Wh >/ KDW z >/D/d /^ d, /> Ͳ ^ KDW z ' ' / WZK h d/k ^ > K& > dz/ /dz ' Z d &ZKD Z t > Z'z DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϭ ϵϰ Ϯ ϱϯ ϭϲ ϲϲ ϭ ϭϭ ϭ ϭϭ ϭйź W^ d, ϭ Ϯϴ ϭϱйÿ ^, &>Kt ^,Z d, Ϯ ϱϰ ϯ ϭϯ Ͳϯ Ϯϴ ϭ Ϯϵ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ϭϯй WZ d y D Z'/ й ϲϭй ϲϵй ϳϭй ϰϵй ϮϬϭϱͲϭϳ ͲϮϱй Ϯϴ ^ƚăďŝůŝƚljͿ ϮϬй Z dhz K Yh/dz й ϰϭй ϰθй ϭθй ϮϬϭϯͲϭϳ Ͳϭϲй ϯϯ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ϴϰй ϭϯй Ϯй KDW Z d/' ^ > ^ D/>Ϳ d, ϭ ϰϲϯ Ϯ ϲϵϯ ϯ ϬϮϰ ϯ Ϭϴϰ /s d K t <>z :ƵŶ ϯϭ :Ƶů Ϭϳ :Ƶů ϭϰ :Ƶů Ϯϭ :Ƶů Ϯϴ ƵŐ Ϭϰ ƵŐ ϭϭ ƵŐ ϭθ ƵŐ Ϯϰ d й ϮϬϭϰͲϭϲ ϭϰϯй ϭϳϳй ϲϲй d 'Z W, Z d/' ϲϭ ϱϵ ϲϭ ϲϭ ϲϭ ϲϯ ϲϯ ϲϱ ϲϭ d y Z d ϮϬϭϰͲϭϲ Ϭ Ϯϰй Ϭ ϱϯй s' />z sk> ϬϬϬͿ ϭϭ ϲϰϭ ϭϭ ϲθϵ ϭϭ ϳϱϳ ϭϭ Ϯϰϱ ϭϯ ϭϯθ ϭϯ ϳϮϵ ϭϯ ϰθϳ ϭϯ ϰϭϯ ϭϯ ϴϱϲ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd Ϯ ϴ Ϯ ϵ Ϯ ϲ Ϯ ϵ Ϯ ϵ Ϯ ϴ Ϯ Ϭ Ϯ ϯ ϭ ϵ Z Θ < s > Ϯ Ϯϳdž Ζϭϲ hd /^d Z d/' ϰϯ ϰϱ ϰϳ ϰϱ ϲϭ ϱϵ ϯϳ ϰϯ Ϯϰ /s d, Ϭ ϴϰ ϱ ϰйͿ /s 'Z Zd Z > d/s ^dz 'd, ϴϭ ϴϬ ϳϳ ϳϳ ϳϱ ϵϭ ϵϭ ϵϯ ϴϰ d ϭ ϱϰ Ϯϭ ϬϬͿ >W, Ϭ ϭϰ Ϭ ϬϳͿ 'ZKhW Z < Ϯϰ Ϯϭ ϭϳ ϭϭ ϭϭ ϭϭ ϱ ϳ ϲ Ϯ ϯϲ Ϯ ϭθ Ϯ ϬϬ 'OOD UP DOW VOUM RTIO ϭ ϳϯ ϭ ϱϱ ϲϭ ϱϭ ϰϲ ϰϯ ϯθ ϯϰ ϯϭ Ϯϲ THR "RK TO TIM HIGHS Ϯϰ WKS RIR RMIS ϮϮ CTIOB %XCT IDUSTRY GROUP RK ϭ ϯϲ WZ/ ϳϬ ϭϵ ϭϳ ϭ ϭθ ϭ Ϭϵ ϭ ϬϬ Ϭ ϵϱ Ϭ ϵϭ ϴϰ ϭϱ ϱϭ ϭϱ d, ͲϬ ϮϬϬ Ͳϭ Ϯϳй ϭϯ ϭϯ ϭϭ ϭϭ Ϭ ϴϮ ϵ Ϭ ϳϯ ϴ Ϭ ϲϰ ϳ Ϭ ϱϱ ϲ Ϭ ϰϱ Ϭ ϰϯ ϱ ϰ ϲ Ϭ ϯθ ϰ Ϯ Ϭ ϯϱ ϯ ϴ Ϭ ϯϭ ϯ ϰ Ϭ Ϯϳ ϯ 3S GROWTH CCRTIO I 1!SO DJUSTD %03 GROWTH CCRTD Y Y Ϭ Ϯϰ Ϭ ϮϮ 'OOD CCUMUTIO POST )0/ Ϯ ϲ Ϯ ϰ >K' sk>hd ϰϭϭd ϮϬϬD ϭϭϭd ϱϵ ϲd ϱϭd нϯϲй ϮϬD Ăƌ ϭϯ :ƵŶ ϭϯ &/ / >^ W^ d, Ϳ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϭϯ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ϭ ϵϰ :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ Ϯ ϱϯ ϭ ϰϲϯ ϴ нϯϭй Ϯ ϲϵϯ ϯ нϲϭ ϳй нϲϵ ϭй W^ й, ' ^ > ^ D/> d, Ϳ DĂƌ ϭϰ DĂƌ ϭϱ Ϭ ϳϰ :ƵŶ ϭϱ Ϭ ϳϲ ^ĞƉ ϭϱ Ϭ ϳϬ ĞĐ ϭϱ Ϭ ϲϭ DĂƌ ϭϲ Ϭ ϲϲ :ƵŶ ϭϲ Ϭ ϯϯ ^ĞƉ ϭϲ Ϭ Ϯϲ ĞĐ ϭϲ Ϭ Ϯϯ DĂƌ ϭϳ Ϭ Ϯϯ :ƵŶ ϭϳ Ϭ Ϯϯ Ͳϱϴй ϳϱϵ ϱ Ͳϲϯй ϳϴϱ ϭ ͲϲϮй ϳϱϲ ϲ Ͳϲϱй ϳϵϴ Ϭ ͲϮϴй ϴϴϵ ϲ ϳϱϮ ϭ ϳϳϱ Ϭ ϳϯϬ ϴ ϳϲϲ ϰ Ͳϭϭй ϳϴϮ ϴ нϰй ͲϮй нϳй Ͳϭй нϯй нϭϳй нϳϯ ϳй нϳϯ ϳй нϳϭ ϯй нϱϵ ϭй нϳθ ϯй нϱϵ ϵй нϰϲ ϱй нϰϯ Ϯй нϱϲ ϵй нϱϯ Ϭй ϲͳϲ ϴͲϭϭ ϭϯͳϭϰ ϭϯͳϭϲ ϭϭ Ϯϰ Ϯϰ Ϯϱ нθϰй ^ > ^ й, ' D Z'/ &d Z d y W >KtͲ,/', &h ^ Π ϮϬϭϳ t/>>/ D KΖ /> н K / W ϭϲ ϮϬϭϳ Ɛƚ ϭϯ ϵ ϮϬϭϴ Ɛƚ ϭϯ ϭ ϱͳljƌ,ŝőś ϭϲ ϱͳljƌ >Žǁ ϲ ǀƐ /ŶĚ ǀŐ Ϭ ϳdž ĐƉŐ W' d,Ϳ tğğŭůlj ĂƐ ŽĨ dśƶ ƵŐƵƐƚ Ϯϰ ϮϬϭϳ In September, the Company entered into a JV to provide 8.94 MW of electricity to Thailand s government and war veteran organizations. The construction is be completed by Q The project is expected to generate revenues immediately and is entitled to feed-in-tariff rate of THB 4.12 per unit under 25-year power purchase agreement contract with the provincial electricity authority. On ugust 4, BCPG entered into an acquisition agreement with Star nergy Group to expand its geothermal power business in Indonesia. Star nergy is engaged in geothermal power generation and steam production, with an equivalent power production capacity of 995 MW. everaging the investment, the Company will enjoy indirect equity ownership in three geothermal power projects with total power production capacity of 182 MW. ll the projects have long-term feed-in tariff contracts with Indonesia s State lectricity Power. ooking Forward ccording to the Power Development Plan of 2015, Thailand s electricity demand is estimated to increase at 2.6% per year from 2015 to lectricity demand is expected to continue to rise from 27,633 MW in 2014 to 49,655 MW in ext catalyst: The Company s Q earnings are expected to be released on February 16, ocal Code: TH:BCPG Bloomberg Symbol: BCPG:TB ISI: TH

136 Bcpg THID BCPG BKK (BCPG.TH) RGY-TRTIV/OTHR 1.99B U W K Y 2008 PS THB (DC.) CF/SHR THB PRTX MRGI, % RT. O QUITY, % SS % CHG SS (BI THB) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK M SHRS RIGS BUSISS: MGMT owns SC BCPG PUBIC COMPY IMITD IS THID-BSD COMPY SO IVSTS I OTHR COMPIS RDY OPRTIG D PRIC = GGD I PRODUCTIO D S OF CTRICITY GRTD FROM SIG CTRIC POWR FROM RWB SOURCS. 10 X PS RWB RGY. IT IS IDPDT POWR PRODUCR WITH ITS PRICIP RGY SOURC FROM SOR POWR. TH COMPY OPRTS SOR POWR PTS MIY I THID D JP. IT X-DIV FOT MKT 12/7/2017 CP THB 51.30BI. SS THB3.30 BI IC THID PS RTIG THB25.75(OH -8%) 100 Up 66.13% Since ddition PRIC SC STIMT 2018 STIMT % % RIGS GROWTH RT SS GR RT %(22 STBIITY) +8% %(30 STBIITY) +18% COMPOSIT RTIG IVT T/O DBT % %: 177%: 66% TX RT %: 1%: : : BCKOG X '16 BK.V R&D 0.6(2.3%) DIV GR RT DIV 0.17(0.09) BT 1.53(10) PH BGKST % Global Focus M THB B VOUM 500 M 300 M 90 M SP Q -68% BOW ST. PS (THB) % % 69.1% +40.9% % CHG SS(BI THB) % CHG MRGI FTR TX 60.7% RTUR O QUITY T4Q % 72.7% 71.3% 59.1% +47.7% % % 78.3% % % 59.9% P OW-HIGH FUD/SHRS (000) DC 13 MR 14 JU 14 SP 14 DC 14 MR 15 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. nergy: nergy-lternative/other SP 15 DC 15 MR 16 JU % % 45.9% /9056 SP % % 43.2% +17.6% /10385 DC % % 56.9% +14.8% /9667 MR % % 52.0% +14.6% /29098 JU 17 FOR IFORMTIO, C OR VISIT % % 60.1% +12.4% DC Q % '13-18 P..'S OW OW HI ST 63/41640 SP M DC 17 5X 21X 15X MR 18 TM DTGRPHS 2/2/2018

137 IDI WĞƚƌŽŶĞƚ > ' d / d/k > / / džđś / ϯϰϳ'ϭϭϭϭϰ нϵϭ ϭϭ Ϯϯϰϭ ϭϰϭϭ W^ ZĂŶŬ ϰθ W^ ϭϯ dž Petronet G KŝůΘ'ĂƐͲZĞĮŶŝŶŐ DŬƚŐ ƉĞƚƌŽŶĞƚůŶŐ ĐŽŵ DŬƚ ĂƉ /Zϯϭϲ ϯϵ ^ĂůĞƐ /ZϮϳϮ Ϯϯ Ğǁ ĞůŚŝ / / ^ŚĂƌĞƐ ϳϱϬD &ůžăƚ ϯϳϱd K, Ͳϭй W dzk d >' >/D/d W>>Ϳ /^ ' ' / ^ > K& Z Ͳ' ^/&/ >/Yh &/ dhz > ' ^ Z>'Ϳ d, KDW z /^ ' ' / d, /DWKZd Z Ͳ ' ^/&/ d/k K& >/Yh &/ dhz > ' ^ >'Ϳ DKZ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϲ ϯϯ ϲ ϵϭ ϱ ϯϵ ϴ Ϯϲ ϭϰ ϭϭ ϭϱ ϯϯ ϵ ϰϵ ϭϯ Ϭϲ ϭϯ ϯθ ϮϬ ϵϭ ϲϵйÿ Ϯϰ Ϯϲ ϭϲйź W^ /Z ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z /Z ϳ ϴϱ ϴ ϭϭ ϳ ϵϱ ϭϭ ϲϳ ϭϰ ϵϭ ϭϱ ϳϱ ϭϱ ϵϰ ϭϱ ϵϭ ϭϲ ϲϲ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ Ͳϯй WZ d y D Z'/ й ϭϭй ϵй ϲй ϳй ϳй ϲй ϯй ϯй ϱй ϮϬϭϰͲϭϲ ͲϮй ϭϵ ^ƚăďŝůŝƚljͿ ϭθй Z dhz K Yh/dz й ϯϯй Ϯϵй ϭϵй Ϯϱй ϯϰй Ϯϵй ϭϱй ϭϳй ϭϱй ϮϬϭϮͲϭϲ Ͳϭй Ϯϭ ^ƚăďŝůŝƚljͿ ^ > ^ й, ' ϭϵй Ϯϵй Ϯϲй Ϯϰй ϳϮй ϯϵй ϮϬй ϱй Ͳϯϭй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϲϲ< ϴϰ< ϭϭϲ< ϭϯϯ< ϮϮϳ< ϯϭϱ< ϯϳϳ< ϯϵϲ< ϮϳϮ< /s d K ϯϲ ϯdž ϵϭ t <>z &Ğď ϭϳ &Ğď Ϯϰ DĂƌ Ϭϯ DĂƌ ϭϭ DĂƌ ϭϳ DĂƌ Ϯϰ DĂƌ ϯϭ Ɖƌ Ϭϳ Ɖƌ ϭϭ d й ϮϬϭϰͲϭϲ ϱϯй ϰϰй ϯϰй d 'Z W, Z d/' ϲϯ ϲϲ ϲϳ ϲϲ ϲϳ ϲϰ ϲϱ ϲϲ ϲθ d y Z d ϮϬϭϰͲϭϲ ϯϯй ϭϯй Ϯϰй s' />z sk> ϬϬϬͿ ϭ ϳϰϭ ϭ ϴϴϬ ϭ ϵϯθ ϭ ϵϯϲ ϭ ϵϳϲ Ϯ ϬϲϬ Ϯ ϭϯϭ Ϯ ϭϭϯ Ϯ ϭϲϯ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϭ ϭ Ϭ ϭ ϭ ϭ ϭ ϭ Ϯ ϭ ϱ ϭ ϯ ϭ ϰ ϭ ϰ Z Θ < s > ϰ ϴϯdž Ζϭϲ hd /^d Z d/' ϭϭ ϵ ϭϳ Ϯϭ Ϯϯ Ϯϱ ϮϮ Ϯϵ ϯθ /s /Z Ϯ ϱϭ Ϭ ϲйͿ /s 'Z ZdͲϭй ϭϯͿ Z > d/s ^dz 'd, ϲθ ϲθ ϲϳ ϲϭ ϲϱ ϲϲ ϲϲ ϲϲ ϲθ d ϭ Ϭϳ ϭθ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϬϲͿ 'ZKhW Z < ϱϵ ϰϭ ϯϰ ϯϭ Ϯϵ ϰϰ ϯϵ ϯϰ ϯϭ ϮϬϭϲ DW>Kz ^ ϲ ϰϱϯ ϳϯйͿ ϴϰ ϲϯ ϳϲ ϵϯ ϲϵ Ϯϯ ϲϭ ϱϰ ϱϯ ϴϱ ϰϲ ϭϱ ϯθ ϰϲ ϯϱ ϯθ ϯϯ ϯϭ W^ ƵĞ ϱ ϱ ϮϬϭϳĞ D'Dd ŽǁŶƐ >K' &ŝdžğěͿ ϭϭϭϭ ϵϭϭ ϴϬϬ Break out to all time highs on 2.3x the average daily volume ϳϬϬ ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ ϰϯϭ ϴϱ Ϯϵ Ϯϯ ϯθϭ нϭϯ Ϯϱ Ϯϲ ϭϱ ϯϰϭ Ϯϯ Ϭϴ Source: Corporate Website ϮϲϬ ϮϰϬ ϮϮϬ ϭϰ ϲϯ ϭϵϭ ϭϳϭ ϲθ Ͳ ϭϭ ϬϬ ϵ Ϯϯ ϴ ϰϲ 40-Week M 10-Week M ϳ ϲϵ ϲ ϵϯ Company Overview Petronet imports and regasifies liquefied natural gas (G) and sets up G terminals across the country. The Company is backed by strong promoters who are leading players in the oil and gas sector, including GI (India) imited (GI), Oil & atural Gas Corporation imited (OGC), Indian Oil Corporation imited (IOC), and Bharat Petroleum Corporation imited (BPC). It currently operates through two terminals at Dahej and Kochi, with capacities of 15M metric ton per annum (mmtpa) and 5 mmtpa, respectively. O eil Methodology The stock experienced a short-term downtrend and it is currently reviving its position up from a 50-DM breach. The Company s PS Rank is high at 97 owing to double-digit PS growth in the past few quarters. FY 2017 RO and margins have been consistently increasing and stand at 23% and 10%, respectively. In Q2 FY 2018, revenues and PS increased 18% and 28%, y/y, respectively, driven by a 16% y/y increase in volume from an increase in the regasification capacity and more than100% utilization of its Dahej plant. The Dahej terminal processed and sold 210T British thermal units (Btu) of G in Q2 FY 2018, a14% y/y growth in its throughput. Rising R/S line with solid /D rating ϭϱϭ ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ ϵϭ ϲ ϭϱ ϴϬ ϱ ϯθ ϳϬ ϰ ϲϯ ϲϭ ϯ ϴϱ ϯ ϱϰ W^ W^ W^ W^ W^ W^ W^ W^ W^ нϳϯй нϲй нθй Ͳϭϳй Ͳϱϳй ͲϯϬй нϯϭй нϱϳй нϭϭй ϱϭ ϰϲ ϯ Ϯϯ Ϯ ϵϯ /Z нϯ Ϯϰй ϯϭϭ Improving /D and R/S ratings, IG rank also improving week-over week ϮϬ ϬϬ ϭθ ϰϲ ϭϲ ϵϯ ϭϯ Ϭϴ ϭϯ ϯθ ϭϭ ϱϰ Petronet G (T.I) is a leading company in the Indian energy sector, set up as a joint venture by the government of India. The Company continues to grow with ongoing capacity expansions. WZ/ ϭϭϭϭ ϰϯ W^ W^ W^ W^ W^ W^ W^ W^ W^ W^ ϵθй нϭϵй нϯϭй Ϭй ͲϰϮй Ͳϯϭй нϰϱй нϳϳй Ͳϱй Ͳϭϱй ϯθ >/ sk>hd Increasing sponsorship ϮϭD ϭϱd нϰϯй ϵd ϱ ϳD ĞĐ ϭϭ DĂƌ ϭϯ &/ / >^ ϯ ϵϰ ϯ Ϯϳ W^ /ZͿ нϳϯй нϭϵй W^ й, ' :ƵŶ ϭϯ ϯ ϲϭ нϲй ^ĞƉ ϭϯ ϰ ϮϬ нϯϭй ĞĐ ϭϯ ϰ Ϯϱ нθй DĂƌ ϭϯ ϯ Ϯϲ Ϭй :ƵŶ ϭϯ ϯ ϬϬ Ͳϭϳй ^ĞƉ ϭϯ Ϯ ϰϯ ͲϰϮй ϲϯ ϱϳϲ Ϯ ϲϯ ϳϱϰ ϯ ^ > ^ D/> /ZͿ нϳϯй нϲϯй ^ > ^ й, ' ϳϬ ϯϭϰ ϭ ϳϱ ϰθϲ Ϯ ϴϰ ϮϮϳ ϴ ϴϰ ϲϱϲ ϰ ϴϰ ϰϰϯ Ϭ ϵϰ ϵϯϰ ϳ нϱϯй нϰϭй нϯϱй нϯϯй Ͳϯ ϵй W^ й ^hzwz/^ ϭϯϱ &h ^ϭϯϭ ϴϳ ϭϭϰ ϱϯϲ ϲϳd ^, Z ^, > z &h ^ нϭϲ ϱй ϭϭϲ ϲϯd ϭϰϱ ϵϭd ϭϱϱ ϵθd Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϭϱϳ ϵϲd ĞĐ ϭϯ ϭ ϴϭ Ͳϱϳй DĂƌ ϭϰ Ϯ Ϯϲ Ͳϯϭй ĞĐ ϭϰ Ϯ ϭϳ нϯϭй DĂƌ ϭϱ ϰ Ϭϭ нϳϳй :ƵŶ ϭϱ ϯ Ϯϵ нϱϳй ^ĞƉ ϭϱ ϯ ϯϯ Ͳϱй ĞĐ ϭϱ Ϯ ϯθ нϭϭй ϵϯ ϴϮϭ Ϯ ϭϭϰ Ϯϳϳ ϵ ϭϭϭ ϲϭθ Ϯ ϭϭϵ ϳϵϵ ϲ ϭϭϭ ϵθϰ ϴ ϳϭ ϲϭϲ ϵ ϴϯ ϳϳϭ ϳ нϯϭй нϯϲй нϭϭй нϯϯй Ͳϭϱ ϵй Ͳϭϰ ϲй Ͳϭϭ ϰй нϭθ ϴй ϭϰϯ ϵϭd ϭϯϰ ϴϮD ϭϯϱ ϭϭϲd ϭϯϭ ϭϭϲd :ƵŶ ϭϰ Ϯ Ϭϵ ͲϯϬй нϯϭй ϭϭϵ ϭϭϱd ^ĞƉ ϭϰ ϯ ϱϭ нϰϱй ϳϱ ϰϰϵ ϳ ϱϭ ϰϲϭ ϯ нϭϲй нϭϵй Ͳϯϭй Ͳϭϴй Ͳϯϭй Ͳϱϰй нϰϭ ϱй ͲϮϲ Ϯй нϵϭ ϯй нϱϳ ϭй нϭϲ ϰй ϭϯϭ ϭϯϵd ϭϰϲ ϭϰϭd ϭϰϰ ϭϰϵd ϭϰϯ ϭϲϭd ϭϰϯ ϭϲϱd DĂƌ ϭϲ ϯ ϯϵ Ͳϭϱй :ƵŶ ϭϲ ϯ ϳϵĞ нϭϱйğ ϲϭ ϱϰϳ ϳ ϲϭ ϳϱϵ ϭğ Ͳϭϰй ͲϮϳйĞ ^ĞƉ ϭϲ ϰ ϳϴĞ нϰϰйğ ĞĐ ϭϲ ϰ ϱϭğ нθϵйğ DĂƌ ϭϳ ϯϯ ϱͳljƌ,ŝőś ϯϭ Ϭ ϱϲ ϳϭϰ ϮĞ ϲϱ ϵθϳ ϳĞ ͲϮϱйĞ W ϮϬϭϳ Ɛƚ ϮϬ Ϭ нϯθйğ ϱͳljƌ >Žǁ ϴ Ϭ ǀƐ /ŶĚ ǀŐ ϭ ϳdž ϭθϯ ϭϳϯd Ϯϭϴ ϭϳϯd ϮϯϮ ϭϳϯd Ϯϰϱ ϭϳϭd Ϯϳϯ ϭϳϭd Ϯϳϱ ϭϳϭd WĞƚƌŽŶĞƚ > ' d /Ϳ tğğŭůlj ĂƐ ŽĨ dƶğ Ɖƌŝů ϭϭ ϮϬϭϳ Growth Drivers ccording to the Company, Kochi G terminal in Kerala processed a record high quantity of 10T Btu (+122% y/y) of G in Q2 FY The completion of the Kochi-Mangalore pipeline by December 2018 is expected to further boost capacity utilization at the Kochi G terminal. On pril 10, Petronet signed a $1B agreement for an G terminal with a capacity of 7.5 mmtpa in Bangladesh. The new deal is expected to boost revenues in the near future. The Company is building its third terminal on the Indian ast coast at Gangavaram, ndhra Pradesh. With an estimated cost of $750M, the facility will include two storage tanks with marine and regasification facilities. s proposed, the new facility will boost its capacity by 10 mmtpa, with an initial capacity of 5 mmtpa. In 2016, while Petronet expanded its primary Dahej terminal regasification capacity from 10 mmtpa to 15 mmtpa, management guided for further capacity expansion of the Dahej terminal from 15mmt to 17.5mmt by Q4 FY ooking Forward Petronet G aims to spend up to $3B in the next five years to expand overseas, setting up terminals in Bangladesh and Sri anka, among other countries. ext catalyst: The Company is expected to release Q3 FY 2018 results on February 12, ocal Code: I:PTROT Bloomberg Symbol: PG:I ISI: I347G01014

138 Petronet G IDI PTROT G (T.I) S OI&GS-RFIIG/MKTG 1.50B M SHRS RIGS BUSISS: MGMT owns X-DIV SC PTROT G IMITD (P) IS GGD I S OF R-GSIFID MPT CPCITY OF PPROXIMTY FIV MIIO MTRIC TOS PRIC = IQUFID TUR GS (RG). TH COMPY IS GGD I TH PR UM, OCTD T DHJ, GUJRT. TH KOCHI G TRMI 10 X PS IMPORT D R-GSIFICTIO OF IQUFID TUR GS (G). IS G RCIVIG, RGSIFICTIO D R ODIG TRMI TH COMPY OPRTS THROUGH TH SGMT OF TUR GS WITH MPT CPCITY OF PPROXIMTY FIV MIIO MTRIC BUSISS. TH COMPY'S TRMIS ICUD DHJ G TOS PR UM, OCTD T KOCHI, KR.. TH COMPY IS TRMI, KOCHI G TRMI, GGVRM G TRMI D BUIDIG THIRD TRMI T GGVRM, DHR PRDSH SOID CRGO PORT. TH COMPY'S DHJ G TRMI IS G SOID CRGO PORT TRMI HS FCIITIS TO IMPORT/XPORT RCIVIG D RGSIFICTIO TRMI WITH ORIGI BUK PRODUCTS, SUCH S CO, ST D FRTIIZR U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR BI. SS IR BI IDI PS RTIG 95IR243.30(OH -11%) Up 15.35% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT % (9 STBIITY) -18% %(26 STBIITY) -1% COMPOSIT RTIG IVT T/O 53.4x DBT % %: 34%: 18% %: 24%: 28% TX RT : : BCKOG X '17 BK.V R&D 2.5(1.0%) DIV GR RT+2% (22) DIV BT 0.94(10) PH 0.02(0.01) IBOM Global Focus M IR % C /1 36 VOUM 40 M 30 M 20 M 9M PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 1.4% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /210M DC % % 1.6% +15.0% /230M MR % % 1.5% /208M JU % % 2.4% +14.1% /255M SP % % 1.5% /277M DC % % 4.2% +16.5% % /292M MR /314M JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. nergy: Oil&Gas-Refining/Mktg % /325M SP % /342M DC % /342M MR /343M JU /341M SP /310M DC % % 7.0% /306M MR 17 '13-18 P..'S /387M JU 17 FOR IFORMTIO, C OR VISIT OW OW HI ST SP 17 DC 17 7X 23X 22X MR 18 TM DTGRPHS 2/2/2018

139 IDI WŽǁĞƌ 'ƌŝě ŽƌƉ KĨ /ŶĚŝĂ W' / &K ϮϬ dž Source: Corporate Website нϵϭ ϭϯϰ ϮϱϳϭϳϬϬ W^ ZĂŶŬ ϳϴ Power Grid Corp.Of India d/k > / / džđś / ϳϱϮ ϬϭϬϭϬ ƉŽǁĞƌŐƌŝĚŝŶĚŝĂ ĐŽŵ ůğđƚƌŝđăůͳwžǁğƌ ƋƵŝƉŵƚ Ğǁ ĞůŚŝ / / DŬƚ ĂƉ /ZϴϲϬ ϯϯ ^ĂůĞƐ /ZϮϭϯ ϱϯ WKt Z 'Z/ KZWKZ d/k K& / / >/D/d WKt Z'Z/ Ϳ /^ / / Ͳ ^ KDW z ' ' / K^dZh d/k KW Z d/k D /d K& /d ZͲ^d d dz ^D/^^/K ^z^d D /^d^Ϳ h > Ͳ D Z ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ƐƟŵĂƚĞ ϮϬϭϴ ƐƟŵĂƚĞ ϯ ϲϭ ϰ ϬϮ ϰ ϴϱ ϲ ϭϯ ϳ ϭϰ ϵ ϯϯ ϵ ϰϳ ϵ ϲϱ ϭϭ ϱϭ W^ /Z ϭϰ ϭϵ Ϯϯй ϭϲ ϯϲ ϭϱйź ^, &>Kt ^,Z /Z ϲ Ϭϱ ϳ ϳϱ ϭϭ ϱϲ ϭϯ ϯϲ ϭϰ ϰϵ ϭϳ ϵϰ ϮϬ ϬϬ ϮϬ ϱϵ Ϯϯ ϱϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ WZ d y D Z'/ й ϯϳй ϯϵй ϯϳй ϰϱй ϰϱй ϰϰй ϰϭй ϯϳй ϯϲй ϮϬϭϰͲϭϲ ϲй ϯ ^ƚăďŝůŝƚljͿ ϭϳй Z dhz K Yh/dz й ϭϯй ϭϯй ϭϯй ϭϰй ϭϱй ϭθй ϭϱй ϭϰй ϭϱй ϮϬϭϮͲϭϲ ϭϯй ϲ ^ƚăďŝůŝƚljͿ ϮϬй ^ > ^ й, ' Ϯϵй Ϯϯй Ϯϱй ϭϵй Ϯϭй Ϯϳй ϭϵй ϭϯй ϮϮй KDW Z d/' ^DZ Z d/' ^ > ^ D/>Ϳ /Z ϰϲ< ϱϳ< ϳϭ< ϴϱ< ϭϭϯ< ϭϯϭ< ϭϱϲ< ϭϳϱ< Ϯϭϰ< /s d K ϭ ϰdž ϭϲ t <>z DĂLJ ϭϯ DĂLJ ϮϬ DĂLJ Ϯϳ :ƵŶ Ϭϯ :ƵŶ ϭϭ :ƵŶ ϭϳ :ƵŶ Ϯϰ :Ƶů Ϭϭ :Ƶů Ϭϴ d й ϮϬϭϰͲϭϲ ϮϮϰй Ϯϯϱй Ϯϯϳй d 'Z W, Z d/' ϲϭ ϲϭ ϱϳ ϲϱ ϲϳ ϲϲ ϲϯ ϲϳ ϲθ d y Z d ϮϬϭϰͲϭϲ Ϯϴй Ϯϭй Ϯϭй s' />z sk> ϬϬϬͿ ϰ ϱϳϭ ϰ ϭϰϯ ϯ ϴϱϵ ϯ ϲϳϳ ϯ ϰϱϳ ϯ ϯϱϱ ϯ ϭϭϵ ϯ Ϯϲϭ ϯ Ϯϱϵ <>K' ϮϬϭϰͲϭϲ hw Kt sk>hd ϭ ϲ ϭ ϰ ϭ ϳ ϭ ϵ Ϯ ϯ Ϯ ϲ ϭ ϲ ϭ ϵ Ϯ ϯ Z Θ < s > ϭ ϵϵdž Ζϭϲ hd /^d Z d/' ϭϵ Ϯϰ ϰϯ ϰϯ ϰϳ ϰϱ ϰϭ ϲϰ ϲϰ /s /Z Ϯ ϯϭ ϭ ϰйͿ /s 'Z Zdнϯϯй ϭθͿ Z > d/s ^dz 'd, ϱϰ ϱϱ ϲϭ ϲϰ ϲϱ ϲϱ ϲθ ϳϬ ϳϬ d Ϭ ϲϯ ϲθ ϬϬͿ >W, Ϭ Ϭϯ ͲϬ ϬϰͿ 'ZKhW Z < ϰϭ ϰϭ ϳϯ Ϯϴ ϯϭ ϯϯ ϯϭ Ϯϴ ϯϰ ϮϬϭϲ DW>Kz ^ ϵ Ϭϯϯ ϰйͿ Power Grid Corp of India (PGC.I) is India s largest power transmission utility. It continues to benefit from its robust project pipeline, driven by increasing demand for power across the country. ^ŚĂƌĞƐ ϱ ϮϯϮ &ůžăƚ ϭ ϳϳϵ D'Dd ŽǁŶƐ Strong estimates O eil Methodology The stock is currently consolidating with resistance at IR We recommend accumulation when it breaks out of this consolidation base with huge volume. The Company has a high PS Rank of 86. Its RO has been consistently increasing since 2015 and currently stands at 16%. Consensus estimates have PS growing 22% and 16%, y/y, in FY 2018 and FY 2019, respectively. In Q2 FY 2018, revenues and net profit grew 16% and 14%, y/y, respectively, driven by strong capitalization and higher contributions from its consultancy division. It is expected to benefit further from the revenues generated by its strong project pipeline and the increasing demand for power in India. Growth Drivers From FY 2008 to FY 2016, transmission line length in the country had a CGR of 6%, whereas PGC s transmission line length had a CGR of 9% in the same period. WZ/ ϲϭϭ Minimal overhead supply ϱϭϭ ϰϲϭ ϰϯϭ ϯθϭ ϯϰϭ Solid growth rates with stable earnings ϯϭϭ Breaks out to new highs ϮϲϬ ϮϰϬ ϮϮϬ ϭϵϭ High up/down volume with improving /D and R/S rating ϭϳϭ ϭϲϰ ϰϱ /Z ϭϱϭ ͲϬ ϳϬϬ ͲϬ ϰϯй ϭϯϭ ϭϯϭ ϭϭϭ ϭϭϭ 40-Week M Company Overview The Indian government holds a 57.9% stake in PGC. The Company transmits more than 45% of the power generated in India. The Company owns and operates about 142,990 circuit kilometers (ckm) of transmission lines, along with 226 substations. It owns more than 85% of the interstate transmission system. s of September 2017, it had a transformation capacity of about 311,185 megavolt ampere (MV), consistently maintained at an availability of more than 99%. Q2 FY 2018 revenues (y/y % growth) by segment: transmission, 93% (+17%); consultancy, 2% (-27%); telecom, 2% (+20%); other, 3% (+6%). >K' &ŝdžğěͿ ϵϭ ϴϬ 10-Week M ϳϬ н ϳϬ ϲϭ ϱϭ ϰϲ Rising R/S line with best /D rating ϰϯ ϯθ ϯϰ ϯϭ Ϯϲ Ϯϰ ϮϮ Solid PS and revenue growth Increasing funds >/ sk>hd ϯϱϭd ϮϱϬD ϭϱϭd Ͳϭϰй ϭϰ ϭd :ƵŶ ϭϭ ^ĞƉ ϭϭ &/ / >^ W^ /ZͿ W^ й, ' ^ > ^ D/> /ZͿ ^ > ^ й, ' W^ й ^hzwz/^ Ϯϰϴ &h ^ Ϯϭϲ ϰϭθ ϰϲϲ ϯϭϱ ϱϭϯd ^, Z ^, > z &h ^ ĞĐ ϭϭ DĂƌ ϭϯ ϳ ϭϰ нϭϲй :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ϭϭϯ Ϯϯϰ ϲ нϯϭй DĂƌ ϭϯ ϵ ϯϯ нϯϭй :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ ϭϯϭ ϴϭϬ ϵ нϯϳй DĂƌ ϭϰ ϵ ϰϳ нϯй :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ ϭϱϱ ϱϱϯ Ϯ нϭϵй DĂƌ ϭϱ ϵ ϲϱ нϯй :ƵŶ ϭϱ ^ĞƉ ϭϱ ĞĐ ϭϱ ϭϳϱ ϯϵϵ ϲ нϭϯй DĂƌ ϭϲ ϭϭ ϱϭ нϭϵй :ƵŶ ϭϲ Ϯϳϵ ϱϯϵd Ϯϵϳ ϱϱϯd Π ϮϬϭϲ t/>>/ D KΖ /> н K / ϯϯϯ ϱϰθd ϯϯϭ ϱϰϭd ϯϰϭ ϱϭϳd ϯϱϯ ϱϯθd ϯϯϰ ϱϰϯd ϯϳϵ ϴϴϳD ϯϲθ ϵϯϳd ϰϯϰ ϭ ϰϯϲ ϭ ϯϵϱ ϭ ϰϭϱ ϭ W ϭϰ ϮϬϭϳ Ɛƚ ϭϯ Ϯϭϯ ϱϯϯ Ϯ ϱθ ϳϰϮ ϬĞ нϯϯй Ͳϭ Ϯй Ϯϲϭ ϱϰϭd ^ĞƉ ϭϲ ϲϭ Ϯϭϯ ϱğ ϱͳljƌ,ŝőś ϭϲ ϱͳljƌ >Žǁ ϵ ǀƐ /ŶĚ ǀŐ Ϭ ϱdž ϰϭϭ ϭ ϰϯϭ ϭ ϰϰϰ ϭ ϰϵθ ϭ ϱϭϰ ϭ WŽǁĞƌ 'ƌŝě ŽƌƉ KĨ /ŶĚŝĂ W' /Ϳ tğğŭůlj ĂƐ ŽĨ &ƌŝ :ƵůLJ Ϭϴ ϮϬϭϲ ŽĨĨ &ƌŝ :ƵůLJ Ϭϴ ϮϬϭϲ The Company expanded about 2,266 ckm of transmission line; 17,500 MV of four substations; and 3,000 MW of Inter-regional capacity, in Q2 FY s of October 31, the Company has ongoing projects worth IR 0.88B, while its new projects amount to IR 30B. PGC s income from its consultancy segment grew 18% y/y in H1 FY s of September, the Company has about three new domestic and 14 international orders in this segment. ooking Forward PGC expects capital expenditure of about IR 250B and capitalization of IR 300B 350B in FY The Company has identified IR 2.6T in investment opportunities and tied up an investment pipeline of IR 1.44T, which reflects a near-term earnings growth visibility for FY For FY , PGC is planning to add transformation capacity of about 292K MV and transmission lines of about 106K ckm. ext catalyst: The Company s Q3 FY 2018 results are expected to be released on February 7, ocal Code: I:POWRGRID Bloomberg Symbol: PWGR:I ISI: I

140 Power Grid Corp.Of India POWR GRID CORP.OF IDI IDI (PGC.I) S UTIITY-CTRIC POWR 5.23B 1.88B SHRS RIGS BUSISS: MGMT owns X-DIV SC POWR GRID CORPORTIO OF IDI IMITD IS TRSMISSIO CURRT (HVDC) SUB-STTIOS. TH COSUTCY SGMT PRIC = COMPY GGD I TH POWR TRSMISSIO BUSISS WITH ICUDS PIG, DSIG, GIRIG, OD DISPTCH, 10 X PS RSPOSIBIITY FOR PIG, IMPMTTIO, OPRTIO D PROCURMT MGMT, OPRTIO D MITC, FICIG MITC OF ITR-STT TRSMISSIO SYSTM D OPRTIO D PROJCT MGMT. TH TCOM SGMT ICUDS OF TIO D RGIO OD DISPTCH CTRS. TH TRSMISSIO IFRSTRUCTUR, TRPRIS SRVICS D COMPY'S SGMTS ICUD TRSMISSIO, TCOM D TOPOOGIS. IT OWS D OPRTS OVR 129,350 CIRCUIT COSUTCY. TH TRSMISSIO SGMT ICUDS XTR HIGH KIOMTRS OF HV TRSMISSIO IS. IT HS PPROXIMTY VOTG/HIGH VOTG (HV/HV) TWORKS D GRID MGMT. 210 SUB-STTIOS. ITS SMRT GRID BS R TIM IT SO OWS HV TRTIG CURRT (C) D HV DIRCT MOITORIG D COTRO OF POWR SYSTM U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR 1.01T IDI SS IR BI PS RTIG 86IR192.90(OH -14%) Up 17.30% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(4 STBIITY) +18% %(6 STBIITY) +18% COMPOSIT RTIG IVT T/O 3.1x DBT % %: 228%: 223% %: 21%: 21% TX RT : : BCKOG X '17 BK.V R&D DIV 4.35(2.2%) DIV GR RT+1% (20) BT 0.52(7) PH -0.06(-0.06) IBOM Global Focus M IR D VOUM 200 M 70 M MR Q 70% BOV ST. PS (IR) % % 29.2% % CHG SS(BI IR) % CHG MRGI FTR TX % % 28.8% % % 28.9% % % 29.0% FUD/SHRS (000) /884M DC /934M MR /1117M 404/1157M 374/1188M 387/1227M 401/1178M 419/1196M 432/1248M 486/1247M 535/1271M JU 14 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Utility: Utility-lectric Power /1252M SP '13-18 P..'S OW OW HI ST /1235M 615/1266M 652/1279M DC 16 MR 17 JU 17 FOR IFORMTIO, C OR VISIT M JU Q 4.01 RTUR O QUITY T4Q P OW-HIGH 30 M 20 M SP 17 DC 17 9X 14X 16X MR 18 TM DTGRPHS 2/2/2018

141 COOMBI Interconexion lectrica xcellent PS Rank Source: Corporate Website Interconexión léctrica (IS.CO) is one of the leading power companies in Colombia. With about 80% market share, the Company is a dominant player in Colombia supported by a healthy project pipeline. Company Overview IS operates through its subsidiaries in the atin merican power, telecom, and highway concession sectors. In the power segment, the Company operates a high-voltage transmission network of approximately 40,600 kilometers. In the telecom segment, it operates through Internexa S.. In the highway concession segment, it operates and maintains 907 kilometers of highways and five road concessions in Chile. It is the largest operator of toll roads in Chile. Q revenue breakdown: energy transmission, 77%; road concessions, 16%; telecommunications, 5%; real-time system management, 2%. O eil Methodology The stock breached its 50-DM and is attempting to recover. We recommend accumulation when it crosses 50-DM. The Company has an PS Rank of 98, owing to significant PS growth over the past few quarters. Operating revenues and adjusted net income grew 12.8% and 30.8%, y/y, respectively, in Q Growth was due to a 16.4% y/y increase in revenues from the energy transmission segment. Management estimates its 2020 bottom line will grow 3x its 2012 figure to reach COP 819M. Growth Drivers On October 31, IS won two transmission line projects and their relevant stations in Peru. Management expenses are expected to amount to $6.8M. Stock under accumulation with up/down volume ratio and /D Rating at two-month highs Very good industry group rank 40-week M 10-week M Increasing institutional ownership Stock cleared flat-base on double average volume RS line close to highs and RS and /D Ratings are excellent The tenure consists of a construction period of 46 months and 30 years of operations by the Company, after which it will be transferred to the Peruvian State. The Company will be able to generate sustainable revenues during this period. The Copey-Cuestecitas 500 Kv and Copey-Fundación 220 kv project offered to IS in Q is expected to be operational by Bosque 220 kv transformer bay project is anticipated to commence operations from 2019 onward. IS is the largest Colombian player in the transmission line business. The holding group has a 79.62% market share, 69.2% derived from IS and 10.41% from its subsidiary, Transelca. The Company invests mainly in Peru and Chile, and about 89% of projects are in the energy transmission segment. It expects annual revenue of $3.2M from the Peru expansion. ooking Forward ccording to Columbia s ational Development Plan , a 67% increase in foreign direct investment in the energy sector propelled its growth. FDI is expected to increase at an annual average rate of 46%. ccording to Statista, Colombia s GDP is expected to have a CGR of 5.4% from ext Catalyst: The Company s Q results on March 5, ocal Code: Y:IS Bloomberg Symbol: IS:CB ISI: CO15P00026

142 Interconexion lectrica COOMBI ITRCOXIO CTRIC (IS.CO) BOG UTIITY-CTRIC POWR 1.11B M SHRS RIGS BUSISS: MGMT owns X-DIV SC ITRCOCTIO CTRIC S SP (IS) IS COOMBI-BSD TRSCTIOS (TI); COSTRUCTIO OF IFRSTRUCTUR PROJCTS, PRIC = COMPY GGD I TH TRSMISSIO OF CTRIC POWR. TH WHICH ICUD TH DVOPMT OF HIGH-VOTG D 10 X PS COMPY'S BUSISS IS STRUCTURD ITO FIV DIVISIOS: FIBR-OPTIC TRSMISSIO TWORKS; TCOMMUICTIOS CTRIC RGY TRSPORT, OPRTIG TWORK OF TRSPORT, WHICH IS IVOVD I TH SIG OF TH COMPY'S HIGH-VOTG TRSMISSIO CIRCUITS I COOMBI, PRU, TRSMISSIO TWORKS TO OTHR OPRTORS, D ROD BOIVI D BRZI; SMRT MGMT OF R TIM SYSTMS, COCSSIOS, WHICH FOCUSS O TH COSTRUCTIO, MGMT WHICH MGS TH FCIITIS OF TH TIO ITRCOCTD D XPOITTIO OF HIGHWYS, TO RODS D OTHR RTD SYSTM (SI), COMMRCI STTMT SYSTM (SIC), WHOS IFRSTRUCTUR. O SPTMBR 30, 2013, TH COMPY RGY MRKT (M) D ITRTIO CTRICITY STBISHD SUBSIDIRY, ITRCOOMBI S SP STIMT 2018 STIMT 4400 PS COP (DC.) % % CF/SHR COP RIGS GROWTH RT SS GR RT U W K Y PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI COP) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP COP 16.04T SS COP7.35T COOMBI PS RTIG 81 COP14480(OH -1%) Up 36.09% Since ddition PRIC SC %(37 STBIITY) +51% %(30 STBIITY) +26% COMPOSIT RTIG IVT T/O 21x DBT % %: 123%: 109% %: 32%: 34% TX RT : : BCKOG X '16 BK.V R&D 0.1% 392(2.7%) DIV GR RT+1% (58) DIV BT 0.38(5) PH 0.10(0.11) COIGBC % Global Focus M COP B VOUM 3M 1M 600 K 300 K PS (COP) % CHG SS(BI COP) % CHG MRGI FTR TX RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) % % 11.0% +6.3% /26328 DC % % 17.3% +7.7% /26164 MR % % 15.3% +6.8% /27829 JU % % 10.8% +7.4% % % 12.7% +7.3% % % 12.7% % % 14.3% % % 9.0% +8.4% % % 12.5% +10.6% % % 12.2% +10.9% / / / / / / / /36366 SP 14 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Utility: Utility-lectric Power % % 17.3% +8.8% % % 22.2% +25.3% /38972 SP % % 9.2% +24.1% % % 14.6% +25.7% % % 18.3% +26.2% / / / /54218 DC 16 MR 17 JU 17 SP 17 FOR IFORMTIO, C OR VISIT % % 30.5% +13.3% '13-18 P..'S OW OW HI ST DC 17 4X 6X 46X MR 18 TM DTGRPHS 2/2/2018

143 IDI ĞƐĐ ^ / W^ ϭϯ dž ϯ ϱϰ ϯ Ϯϯ Ϯ ϵϯ Ϯ ϲϯ Ϯ ϯϭ Ϯ ϬϬ ϭ ϴϱ ϭ ϲϵ ϭ ϰϲ ϭ ϯϭ Source: Corporate Website CSC td (CS.I) is a diversified Indian company with businesses across power, retail, and information technology. everaging the benefits from a demerger, the Company is expected to enhance profits. Company Overview CSC generates, transmits, and distributes power through installed capacity of 1,125 MW from its four generating units. While it owns two coal-fired plants of 600 MW each at Chandrapur and Haldia, it also owns 160 MW of wind, 27 MW of solar, and 40 MW of washery coal reject-based power plants. The Company operates 124 stores across five regions with more than 1.185M square feet of retail space. CSC also owns 56% of FirstSource Solutions, one of the top three BPO companies in India. FY 2017 revenue by segment: electricity, 57%; services, 25%; retail products, 14%; mall operations, 1%; other operating revenues, 3%. O eil Methodology Currently, the stock is undergoing a consolidation along its 10-WM. We recommend accumulation after a strong breakout from its consolidation base. Historically, three-year revenues and PS have grown an average of 27% and 11%, respectively. Consensus estimates have PS growing 47% and 20%, y/y, in FY 2018 and FY 2019, respectively. In Q2 FY 2018, reported revenues and adjusted net profit increased 3.6% and 2.1%, y/y, respectively, primarily driven by a 4% y/y power volume growth. Growth Drivers The Company plans to demerge its businesses into four segments: generation, distribution, retail, and other investments. It is expected to be complete by March While CSC continues to earn 20% RO across its distribution businesses, demand from Kolkata and Greater oida is expected to increase 3% and around 20%, y/y, respectively. Demand is expected to be driven by improvement in industrial activities. Cesc d/k > / / džđś / ϰθϲ ϬϭϬϭϯ нϵϭ ϯϯ ϮϮϮϱ ϲϭϰϭ W^ ZĂŶŬ ϳϲ hɵůŝƚljͳ ůğđƚƌŝđ WŽǁĞƌ ĐĞƐĐ ĐŽ ŝŷ DŬƚ ĂƉ ΨϮ ϭϰ ^ĂůĞƐ ΨϮ ϭϰ <ŽůŬĂƚĂ / / /ŶĐ ϭϵϳθ ^ŚĂƌĞƐ ϭϯϯd &ůžăƚ ϲϯd ^ >/D/d /^ /d 'Z d > dz/ > hd/>/dz,k> /' KDW z d, KDW z /^ ' ' / d, ' Z d/k /^dz/ hd/k K& > dz/ /dz ZK^^ WWZKy/D d >z ϱϳϭ ^Yh Z </>KD d Z^ K& >/ ^ Z / <K>< d,ktz, t ^d ' > DKZ h > Ͳ D Z ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬϭϵ ƐƟŵĂƚĞ Ϭ ϭϯ Ϭ Ϯϴ Ϭ ϱϭ Ϭ ϯϵ Ϭ ϲθ Ϭ ϲϲ Ϭ Ϯϱ Ϭ ϲθ Ϭ ϴϬ W^ h^ ϭ Ϯϭ ϱϭй ϭ ϰϯ ϭθй ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z h^ Ϭ ϲϰ Ϭ ϳϴ ϭ ϭϭ Ϭ ϵϵ ϭ ϮϬ Ϭ ϲϰ Ϭ ϵϳ ϭ ϳϴ Ϯ Ϭϱ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϭϭй WZ d y D Z'/ й Ϭй ϰй ϲй ϳй ϵй ϴй ϱй ϵй ϵй ϮϬϭϱͲϭϳ Ϯϳй ϯϯ ^ƚăďŝůŝƚljͿ ϭθй Z dhz K Yh/dz й Ϯй ϰй ϲй ϱй ϵй ϵй ϯй ϲй ϳй ϮϬϭϯͲϭϳ ϭϭй ϯϯ ^ƚăďŝůŝƚljͿ ^DZ Z d/' ^ > ^ й, ' ͲϭϬй ϭϳй Ϯϰй Ͳϭй Ϯϭй ϮϮй ϰй ϰй ϭϳй KDW Z d/' ^ > ^ D/>Ϳ h^ ϳϵϵ ϵϯϲ ϭ ϭϲϭ ϭ ϭϱϰ ϭ ϯϵϭ ϭ ϲϵϯ ϭ ϳϲϲ ϭ ϴϯϭ Ϯ ϭϰϭ /s d K ϭϯ ϰdž ϴϭ t <>z ƵŐ ϭθ ƵŐ Ϯϱ ^ĞƉ Ϭϭ ^ĞƉ Ϭϴ ^ĞƉ ϭϱ ^ĞƉ ϮϮ ^ĞƉ Ϯϵ KĐƚ Ϭϲ KĐƚ Ϭϵ d й ϮϬϭϱͲϭϳ ϭϲθй ϵϵй ϭϭϵй d 'Z W, Z d/' ϲθ ϳϬ ϳϭ ϲϵ ϲϵ ϲϵ ϲϵ ϳϯ ϳϮ d y Z d ϮϬϭϱͲϭϳ ϰϭй ϯϭй ϯϯй s' />z sk> ϬϬϬͿ ϰϱϲ ϰθθ ϲϯϲ ϲθϭ ϳϬϬ ϳϯϰ ϳϰϯ ϳϱϵ ϳϲϱ <>K' ϮϬϭϱͲϭϳ hw Kt sk>hd ϭ Ϯ ϭ ϲ ϭ ϳ ϭ ϲ ϭ ϳ ϭ ϲ ϭ ϲ Ϯ Ϭ Ϯ Ϭ Z Θ < s > ϭ ϯϭdž Ζϭϳ hd /^d Z d/' Ϯϵ ϯθ ϯϵ ϯϯ ϯϱ Ϯϵ ϭϯ ϮϮ Ϯϲ /s h^ Ϭ ϭϱ ϭ ϬйͿ /s 'Z Zdнϭϲй ϴͿ Z > d/s ^dz 'd, ϳϰ ϳϲ ϴϬ ϴϬ ϴϬ ϳϵ ϳϴ ϴϮ ϴϮ d ϭ ϯϭ Ϯϱ ϬϬͿ >W, Ϭ ϭϯ Ϭ ϬϳͿ 'ZKhW Z < ϴϴ ϴϭ ϲϲ ϳϳ ϴϭ ϴϴ ϴϯ ϴϭ ϳϵ ϮϬϭϳ DW>Kz ^ ϵ ϰϵϰ ͲϮйͿ ϭ ϭϱ W^ ƵĞ ŝŷ ϲϯ ĂLJƐ ĞͿ K, Ͳϵϵй D'Dd ŽǁŶƐ >K' &ŝdžğěͿ WZ/ ϰϲ 3TROG %03 STIMTS ϰϯ ϯθ ϯϰ ϯϭ Ϯϲ Ϯϰ ϮϮ!FTR BRKIG OUT I!UGUST STOCK R TRS PIVOT RG ϭϵ ϭϳ ϭϲ ϭϭ h^ нϭ ϭϱϰ нϭ ϵϲй ϭϱ 'OOD UP DOW VOUM ϭ ϬϬ Ϭ ϵϯ Ϭ ϴϱ ϭϯ ϭϯ ϭϭ Ϭ ϳϳ Ϭ ϳϴ 7-! SUPPORT Ϭ ϲϵ Ϭ ϲϯ Ϭ ϱϰ ϭϭ ϵ ϴ ϳ Ϭ ϰϲ ϴϮ н Ϭ ϯθ Ϭ ϯϱ ϲ ϱ ϰ ϲ Ϭ ϯϯ ϰ Ϯ Ϭ Ϯϵ ϯ ϴ Ϭ Ϯϲ ϯ ϰ 3TROG 23 TRD FOR TWO YRS Ϭ Ϯϯ Ϭ ϮϬ Ϭ ϭθ Ϭ ϭϳ ϯ Ϯ ϲ Ϯ ϰ Ϯ Ϯ Ϭ ϭϱ Ϯ Ϭ ϭϰ ϭ ϴ Ϭ ϭϯ ϭ ϲ >K' sk>hd ϱd ϯd Ͳϭϵй ϵϭϭ< ϱϲϳ ϭ< :ƵŶ ϭϯ &/ / >^ W^ h^ Ϳ ^ĞƉ ϭϯ ĞĐ ϭϯ DĂƌ ϭϯ Ϭ ϲθ :ƵŶ ϭϯ ^ĞƉ ϭϯ ĞĐ ϭϯ нϳϰй ϭ ϯϵϭ ϰ W^ й, ' ^ > ^ D/> h^ Ϳ DĂƌ ϭϰ Ϭ ϲϲ :ƵŶ ϭϰ ^ĞƉ ϭϰ ĞĐ ϭϰ Ͳϯй ϭ ϲϵϯ Ϭ DĂƌ ϭϱ Ϭ Ϯϱ :ƵŶ ϭϱ ^ĞƉ ϭϱ ĞĐ ϭϱ ͲϲϮй ϭ ϳϲϲ ϯ DĂƌ ϭϲ Ϭ ϲθ :ƵŶ ϭϲ ^ĞƉ ϭϲ ĞĐ ϭϲ нϭϳϯй ϭ ϴϯϬ ϴ DĂƌ ϭϳ Ϭ ϴϬ нϭθй Ϯ ϭϰϭ ϭ :ƵŶ ϭϳ ^ĞƉ ϭϳ W ϮϬ ϮϬϭϴ Ɛƚ ϭϯ ϯ ϮϬϭϵ Ɛƚ ϭϭ Ϯ ^ > ^ й, ' нϯϭй нϯϯй нϰй нϰй нϭϳй D Z'/ &d Z d y ϭϭͳϭϯ ϭϭͳϭϯ W >KtͲ,/', ϴϱ &h ^ ϳϱ нϲ ϭй нϰ ϵй нϭ ϴй нϰ ϵй нϱ Ϭй ϱͳljƌ >Žǁ ϳ ϭϯͳϭϳ ϭϭϰ ǀƐ /ŶĚ ǀŐ ϭ ϯdž ϴͲϭϭ ϲϭ ϳͲϵ ϱϯ Π ϮϬϭϳ t/>>/ D KΖ /> н K / ϳͲϵ ϲϲ ϳͲϭϬ ϳϬ ϴͲϭϮ ϳϯ ϭϭͳϭϯ ϳϲ ϭϯͳϯϭ ϵθ ϮϮͲϯϬ ϭϯϭ ϮϴͲϯϲ ϭϯϭ ϯϳͳϰθ ϭϭϱ ϮϮͲϮϳ ϵϵ ϭϲͳϯϭ ϭϭθ ϭϯͳϭϲ ϭϭϭ ϵͳϭϯ ϭϭθ ϭϭͳϭϯ ϭϭϯ ϭϯͳϭϰ ϭϭϯ ϭϭͳϭϯ ϵϳ ϱͳljƌ,ŝőś ϰθ ĞƐĐ ^ /Ϳ tğğŭůlj ĂƐ ŽĨ DŽŶ KĐƚŽďĞƌ Ϭϵ ϮϬϭϳ The Company expects profits for the business to be generated by three new franchises in Rajasthan won in FY 2017 in addition to the profits from its existing power distribution business. CSC has commenced operations in all three franchises and expects them to be profitable over the next months. The Company projects combined revenue potential of IR 12B. Generation business losses are expected to fall IR 2B in FY 2018, with the ramp-up in the 190MW power purchase agreement (PP) signed with oida Power. The Company also signed a PP for 200MW more with oida Power, awaiting final approval from the Uttar Pradesh Power Regulator. The Maharashtra state electricity distribution company has considered purchasing 300MW of power under a long-term PP, which would enable the Company reduce its losses effectively. On the back of PPs, the Company firmly believes in achieving a break-even profit before tax in the near term. ooking Forward China and India are expected to account for 32.6% of global energy demand in 2040, up from 13.6% in 1990 and 28.5% in 2014 ext catalyst: The Company s Q3 FY 2018 results are expected to be released on February 8, ocal Code: I:CSC Bloomberg Symbol: CSC:I ISI: I

144 Cesc IDI CSC (CS.I) S UTIITY-CTRIC POWR M 71.58M SHRS RIGS BUSISS: MGMT owns SC CSC IMITD IS ITGRTD CTRIC UTIITY D HODIG SRVS DOMSTIC, IDUSTRI D COMMRCI USRS. IT OWS PRIC = COMPY. TH COMPY IS GGD I TH GRTIO D D OPRTS OVR THR THRM POWR PTS GRTIG 10 X PS DISTRIBUTIO OF CTRICITY CROSS PPROXIMTY 570 SQUR PPROXIMTY 1,120 MGWTTS OF POWR. TH THRM POWR KIOMTRS OF ICSD R I KOKT D HOWRH, WST PTS ICUD BUDG BUDG GRTIG STTIO, SOUTHR BG. TH COMPY'S SGMTS ICUD POWR, WHICH IS GRTIG STTIO D TITGRH GRTIG STTIO. TH GGD I GRTIO D DISTRIBUTIO OF CTRICITY; COMPY, THROUGH ITS SUBSIDIRIS, OPRTS I RTI, 340 RTI, WHICH ICUDS ORGIZD RTIIG; PROPRTY, WHICH BUSISS PROCSS MGMT D IFRSTRUCTUR SCTORS. IT 320 IS GGD I PROPRTY DVOPMT, D PROCSSIG OPRTS I IDI, TH UITD KIGDOM, TH UITD STTS, 300 OUTSOURCIG, WHICH ICUDS BUSISS PROCSS OUTSOURCIG. IT CD D RST OF TH WORD U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK X-DIV FOT MKT CP IR BI. SS IR BI IDI IC PS RTIG IR1000(OH -15%) Down 4.97% Since ddition PRIC SC STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(33 STBIITY) +11% %(33 STBIITY) +18% COMPOSIT RTIG IVT T/O 12.4x DBT % %: 99%: 109% %: 30%: 32% TX RT : : BCKOG X '17 BK.V R&D 10(1.0%) DIV GR RT+16% (8) DIV BT 1.42(20) PH IBOM Global Focus M IR % C VOUM 7M 4M 2M 1M PS (IR) % % 4.9% % CHG SS(BI IR) % CHG MRGI FTR TX % % 1.8% % % 4.9% % % 5.0% '13-18 P..'S OW OW HI ST RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) /34928 DC /35386 MR /39904 JU / / /42694 SP 14 DC 14 MR /41756 JU 15 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Utility: Utility-lectric Power / / / /42223 SP 15 DC 15 MR 16 JU /42807 SP /41632 DC / /37312 MR 17 JU 17 FOR IFORMTIO, C OR VISIT SP 17 DC 17 6X 19X 48X MR 18 TM DTGRPHS 2/2/2018

145 IDI :ƵďŝůĂŶƚ >ŝĩğ ^ĐŝƐ sk / W^ ϮϬ dž ϲϱ ϬϬ ϲϭ ϬϬ ϱϱ ϬϬ ϱϭ ϬϬ ϰϱ ϬϬ ϰϭ ϵϭ ϰϭ ϬϬ ϯϱ ϬϬ ϯϭ ϬϬ Jubilant ife Scis. d/k > / / džđś / ϳϬϬ ϬϭϬϯϯ нϵϭ ϭϯϭ ϮϱϭϲϲϬϭ W^ ZĂŶŬ ϰϳ ũƶďů ĐŽŵ DĞĚŝĐĂůͲ ŝǀğƌɛŝįğě DŬƚ ĂƉ /Zϭϰϯ ϭϯ ^ĂůĞƐ /Zϲϴ ϲϰ 'ĂũƌĂƵůĂ ŝɛƚ / / ^ŚĂƌĞƐ ϭϱϵd &ůžăƚ ϵϳd :h /> d >/& ^ / ^ >/D/d /^ / / Ͳ ^ W, ZD hd/ > >/& ^ / ^ KDW z d, KDW z /^ ' ' / WZKs/ /' ^/ KZ' /, D/ >^ DKZ ϮϬϭϴ ƐƟŵĂƚĞ ϮϬϭϵ ƐƟŵĂƚĞ h > Ͳ D Z ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϭϵ ϮϮ Ϯϴ ϱϲ ϭϰ ϰϯ Ϭ ϵϭ ϵ ϱϵ ϲ ϴϱ Ͳϯ ϲϯ Ϯϱ ϭϭ ϯϲ ϵϯ ϱϱ ϯϯ ϯϭйź ϰϯ Ϯϵ ϭϱйź W^ /Z ^ĂůĞƐ 'ƌžǁƚś ZĂƚĞ ^, &>Kt ^,Z /Z ϯϱ Ϯϰ ϯϯ ϵϯ ϮϮ ϴϲ ϰϭ ϵϭ ϰϯ ϱϵ ϯϰ ϳϬ ϮϮ ϰθ ϱϲ ϲϭ ϲϰ ϱϯ ĂƌŶŝŶŐƐ 'ƌžǁƚś ZĂƚĞ ϯй WZ d y D Z'/ й ϵй ϭϰй ϳй ϯй ϳй ϰй ϭй ϵй ϭϯй ϮϬϭϱͲϭϳ ϳϰй ϰϲ ^ƚăďŝůŝƚljͿ ϯй Z dhz K Yh/dz й ϮϮй Ϯϰй ϭϭй ϭй ϲй ϰй ͲϮй ϭϲй ϭθй ϮϬϭϯͲϭϳ ^DZ Z d/' ^ > ^ й, ' ϯϵй ϵй ͲϭϬй Ϯϱй Ϯϭй ϭϯй Ϭй Ͳϭй Ϯй KDW Z d/' ^ > ^ D/>Ϳ /Z ϯϱ< ϯθ< ϯϰ< ϰϯ< ϱϯ< ϱθ< ϱθ< ϱϳ< ϱϵ< /s d K ϯ ϲdž ϰϭ t <>z Žǀ Ϯϰ ĞĐ ϭ ĞĐ ϴ ĞĐ ϭϱ ĞĐ ϮϮ ĞĐ Ϯϵ :ĂŶ ϱ :ĂŶ ϭϯ :ĂŶ ϭθ d й ϮϬϭϱͲϭϳ ϭϱϭй ϭϭϯй ϭϭϯй d 'Z W, Z d/' ϯϵ ϰϰ ϰϱ ϰϭ ϱϳ ϱϲ ϱϯ ϱϯ ϳϰ d y Z d ϮϬϭϱͲϭϳ ϮϬϬй Ϯϵй ϮϮй s' />z sk> ϬϬϬͿ Ϯϳϲ ϯϭϲ ϯϳϯ ϯθϭ ϰϭϰ ϰϱϭ ϰϱϭ ϰϵϭ ϳϭϵ <>K' ϮϬϭϱͲϭϳ hw Kt sk>hd ϭ ϰ ϭ ϳ Ϯ Ϭ ϭ ϵ Ϯ ϭ Ϯ Ϯ Ϯ Ϯ ϭ ϵ ϭ ϳ Z Θ Ϭ ϯϭй < s > ϰ Ϯϵdž Ζϭϳ hd /^d Z d/' ϭϯ ϰϯ Ϯϳ Ϯϯ ϰϯ ϰϭ ϯϰ ϯϱ ϮϮ /s /Z ϯ ϬϬ Ϭ ϯйͿ /s 'Z ZdнϬй ϬͿ Z > d/s ^dz 'd, ϮϬ ϯϭ Ϯϵ Ϯϵ ϰϵ ϰϳ ϯϲ ϰϯ ϲϯ d ϭ ϯϲ ϭϭ ϬϬͿ >W, ͲϬ ϬϮ ͲϬ ϬϭͿ 'ZKhW Z < ϭϯϱ ϭϯϳ ϭϯϳ ϭϯϵ ϭϯϯ ϭϯϯ ϭϯθ ϭϰϯ ϭϯϰ ϮϬϭϳ DW>Kz ^ Ϯ ϯθϵ ͲϮйͿ W^ ƵĞ ϱ Ϯϯ ϮϬϭϴĞ 6WRF UHDV RXW RQ [ DYHUDJH GDO\ YROXPH D'Dd ŽǁŶƐ 'RXOH GJW DQQXDO (36 HVWPDWHV K, Ͳϴй ϭϭϭϭ ϵϭϭ ϴϵϴ ϲϭ ϴϬϬ нϭϭϭ ϰϭ ϲϭϭ ϱϭϭ ϰϲϭ ϰϯϭ ϭϵ ϬϬ ϯθϭ ϭϳ ϬϬ ϯϰϭ ϲϯ ϲ ϯ ϭϱ ϬϬ Company Overview Jubilant s pharmaceuticals segment offers contract manufacturing of generics and specialty products. The life science ingredients (SI) segment manufactures specialty intermediates, nutritional products, and life science chemicals. The DDS segment provides collaborative research for out-licensing. Q3 FY 2018 revenue by segment: pharmaceuticals, 53%; SI, 45%; DDS, 2%. O eil Methodology The stock broke out of a 38-week consolidation on 8x average daily volume. The stock s RS line is sharply rising with its RS Rating improving to 63 from 42 last week. Strong /D Rating of B and Up/Down volume ratio of 1.7. Double-digit consensus PS and revenue estimates for FY 2018 and FY Growth Drivers Jubilant has a wide portfolio of market-leading radiopharmaceutical products, with the U.S. market accounting for ~70% of radiopharma revenues. ccording to Grand View Research, the global radiopharmaceutical market is expected to reach $13.8B by 2024, driven by increasing prevalence of cancer and cardiovascular diseases. Jubilant acquired the U.S. radiopharmacy business Triad Isotopes, which operates the second largest radiopharmacy network in the U.S. with more than 50 pharmacies and a ~25% market share. Through the acquisition, Jubilant will gain direct access to hospital networks with the ability to deliver more than 3M patient doses annually through ~ 1,700 customers. /Z нϭϯ ϱθй ϳϬϬ 6WURQJ GHPDQG IRU VWRF Ϯϭ ϬϬ Jubilant ife Sciences (VOC.I) is a leading contract pharmaceutical manufacturing organization. Strong traction in radiopharmaceuticals and favorable dynamics in specialty chemicals bodes well for the Company. 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RubyFill currently has a market size of $76M with the potential to reach $250M by Jubilant is the global leader for Pyridines, which is mostly used for manufacturing agro chemicals and is also used as a raw material for vitamin B3. The global crop protection chemicals market is projected to have a CGR of 5% from 2016 to $70B by The Company launched six new products in FY 2018 and expects to launch four more in the next year. Jubilant also commissioned an agrochemical intermediate facility which has a total annual revenue potential of around IR 500M. Strong demand and recent price increases resulted in drastic margin improvement for the SI segment (22.3% in Q3 FY 2018 from a normal 15-16% run rate). Jubilant is the fourth largest ethanol supplier in the Indian government s blending program. In Q3 FY 2018, it won a new contract with potential revenue of IR 3B. ooking Forward Consensus calls for FY 2019 PS growth of 31% on revenue growth of 17% y/y. ext catalyst: The Company will announce Q4 FY 2018 results on pril ocal Code: I:JUBIT Bloomberg Symbol: JUBIT:I ISI: I

146 Jubilant ife Scis. IDI JUBIT IF SCIS. (VOC.I) S MDIC-DIVRSIFID M 97.16M SHRS RIGS BUSISS: MGMT owns X-DIV SC JUBIT IF SCICS IMITD IS IDI-BSD DISCOVRY SOUTIOS, D IDI BRDD PHRMCUTICS. TH PRIC = PHRMCUTIC D IF SCICS COMPY. TH COMPY IS IF SCICS IGRDITS SGMT ICUDS SPCITY 10 X PS GGD I PROVIDIG BSIC ORGIC CHMICS. TH COMPY'S ITRMDITS, IF SCICS CHMICS D UTRITIO SGMTS ICUD PHRMCUTICS D IF SCICS PRODUCTS. ITS GOGRPHIC SGMTS ICUD WITHI IDI D IGRDITS. TH PHRMCUTICS SGMT COSISTS OF OUTSID IDI. TH COMPY'S SPCITY ITRMDITS 150 GRICS, ICUDIG CTIV PHRMCUTICS IGRDITS BUSISS DS I PPROXIMTY 60 COMMRCI PRODUCTS, (PIS) D SOID DOSG FORMUTIOS; SPCITY ICUDIG PYRIDIS, PICOIS D CYOPYRIDIS. ITS 140 PHRMCUTICS (STRI PRODUCTS), ICUDIG MUFCTURIG FCIITIS R OCTD I GJRU, UTTR 130 RDIOPHRMCUTICS, RGY THRPY PRODUCTS D COTRCT PRDSH. MUFCTURIG OPRTIOS OF STRI IJCTBS; DRUG U W K Y PS IR (MR.) CF/SHR IR PRTX MRGI, % RT. O QUITY, % SS % CHG SS (MI IR) GOB DG RTIG VG DIY VO(000) UP DOW VOUM CCUM/DIST RTIG RTIV STRGTH GROUP RK FOT MKT CP IR BI. SS IR68.64 BI 46 IR880.10(OH -9%) PRIC SC 1700 Down 2.06% Since ddition STIMT 2019 STIMT % % RIGS GROWTH RT SS GR RT %(46 STBIITY) +3% % COMPOSIT RTIG IVT T/O IDI PS RTIG Global Focus M IR IBOM x 40 DBT % %: 102%: 102% : 29%: 22% TX RT : : BCKOG X '17 BK.V R&D 0.3% 3(0.3%) DIV GR RT DIV BT 1.22(9) PH % B VOUM 10 M 5M 2M DC Q -20% BOW ST. PS (IR) % CHG SS(BI IR) % CHG MRGI FTR TX % % 9.9% RTUR O QUITY T4Q P OW-HIGH FUD/SHRS (000) 25/8218 DC #+420% % 6.3% +4.2% /7787 MR #+109% % 0.3% /7466 JU % +6.0% /6158 SP % % % 2.8% #+237% % 8.7% #+1226% % 9.0% % % 3.2% +16.0% % % 11.4% % % 10.4% +14.4% % % 8.2% % % 9.4% +17.9% % % 9.5% % % 7.8% +15.1% % % 10.3% P..'S FOR IFORMTIO, C OR VISIT K ' / / / / / / / / / / / / /5367 DC 14 MR 15 JU 15 SP 15 DC 15 MR 16 JU 16 SP 16 DC 16 MR 17 JU 17 SP 17 DC 17 MR 18 COPYRIGHT 2018 WIIM O'I + CO. ICORPORTD. RIGHTS RSRVD. Health Care: Medical-Diversified % % 9.1% 1M 500 K TM DTGRPHS OW OW HI ST 8X 17X 41X 2/2/2018

147 BRZI /ŶƐƟƚƵƚŽ,ĞƌŵĞƐ WĂƌĚŝŶŝ KŶ /,W Z W^ Ϯϯ dž ϱ ϮϮ ϰ ϳϴ ϰ ϯϱ ϯ ϵϭ ϯ ϰθ ϯ Ϭϰ Ϯ ϲϭ Ϯ ϭϳ Ϯ ϬϬ нϱϱ ϯϭ ϯϯϯθ ϲϯϭϭ W^ ZĂŶŬ ϴϯ ^ K W h>k džđś ZW Z KZϭ ǁǁǁϯ ŚĞƌŵĞƐƉĂƌĚŝŶŝ ĐŽŵ ďƌ Hermes Pardini is one of the largest diagnostics companies in Brazil. The private diagnostics services market is poised to grow at a CGR of 7-10% in Brazil, providing significant growth opportunities for the Company. Company Overview Hermes Pardini is the leader in the lab-to-lab segment, with an estimated 20% market share. They are the leader in the lab-to-lab segment (B2B), with an estimated 20% market share, and stand number four in the patient service center segment (PSC). They have a 70% PSC market share in Belo Horizonte. The Company operates 111 PSCs in four states, under seven banners with a portfolio of 4000 tests. It serves more than 5,300 clients in the lab-to-lab division in 1,800 cities across Brazil. Its Q net sales by segment: ab-to-ab 55% and PSC 45%. Gross revenue by brand: Hermes Pardini (lab-to-lab) 92%, Diagnostika (pathological anatomy exams) 6%, and Progenetica (molecular exams) 2%. Test type breakdown: clinical analysis 84%, imaging 14%, and vaccines 2%. O eil Methodology The Company s revenues and PS grew at an average of 16% and 11%, respectively, from 2015 to The consensus estimate call for PS to grow at 18% and 31%, in 2017 and 2018, respectively. Its PS Rank is currently at 43 (99 being the best), which is expected to improve given consensus PS growth estimates of 24% and 25% in 2017 and 2018, respectively. Technical ratings and rankings are strong, with an RS Rating of 87, /D Rating of -, and Up/Down volume of 1.7. The Company s Q results were announced on ugust 14, The net sales was BR 286M (+25% y/y), adjusted BITD was BR 68M (+25% y/y), and PS was BR 0.27(+16% y/y). ab-to-ab segment revenues came in at BR 172.7M (+17.5% y/y), led by a 19.5% y/y growth in the volume of exams; while PSC revenues stood at BR 140.8M (+35.1% y/y). 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Pardini owns ~100 PSCs currently, and is likely to grow further through consolidation along with DS, Fleury, and lliar. Pardini focuses its investments in the PSC segment, and is now targeting the Sao Paulo and Rio market. The Company aims to be the preferred low-end/entry-level diagnostics partner for health plan operators. Its peers,ds and Fleury, focus on the intermediate to premium segments. Physicians are increasingly leveraging diagnostic services to detect chronic diseases at early stages. This would lead to more check-ups, preventing high inpatient service costs and lowering medical costs, driving growth for diagnostics. Currently, only 25% of the Brazilian population have access to private health care. The percentage of Brazilians above 65 years of age is expected to double to 4%, from 2011 to s the population grows older, they typically require a higher volume of health care services, including diagnostics. ooking Forward Consensus estimates call for PSC net sales to grow at 8% CGR from 2017 to From 2016 to 2021, gross revenue is expected to grow at a CGR of 15.5% (lab-to-lab 13.3% and PSC 18.4%). ext Catalyst: Its Q3 FY 2017 results are expected on ovember 13, ocal Code: BRPRD3 Bloomberg Symbol: PRD3:BZ ISI: BRPRDCOR1