INVESTOR DIGEST HIGHLIGHT CORPORATE. Equity Research 3 December 2014

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1 INVESTOR DIGEST Equity Research 3 December 2014 Economic Data Latest 2014F BI Rate (%), eop Inflation (YoY %) US$ 1 = Rp, period avg 12,271 11,832 HIGHLIGHT Lippo Cikarang: On the road to success (LPCK; Rp10,475; Buy; TP:Rp12,300) Soechi Lines: Maritime Maestro (SOCI; Rp550; Buy; TP:Rp880) Plantation: Re-emergence of the likeliness of El Nino (Overweight) Stock Market Data (2 Dec2014) JCI Index 5, % Trading T/O ( Rp bn ) 5,270.0 Market Cap ( Rp tn ) 5,161.9 Market Data Summary* 2014F 2015F EBITDA growth (%) EPS growth (%) EV/EBITDA (x) P/E (x) P/BV (x) Div. Yield (%) Earnings Yield (%) Net Gearing (%) ROE (%) * Aggregate of 76 companies in MS research universe, representing 65.2% of JCI s market capitalization CORPORATE Lippo Cikarang: On the road to success (LPCK; Rp10,475; Buy; TP:Rp12,300) LPCK has been outperforming the JCI by 23% in the past three months. However, we still think that there is an upside, considering the successful launch of Orange County recently. We see potential upside on new infrastructure projects near its surrounding areas. Maintain Buy with higher TP of Rp12,300. Over-achieving its target. For FY14F, LPCK aimed for marketing sales of Rp1.5tn. Post the Irvine tower launch in LPCK, we estimate marketing sales to reach Rp1.8tn, 20% above its FY14F marketing sales target. Irvine tower is LPCK s first project in Orange County and it was a runaway success. The customer list is around 1,500 people and the company is opening the list for its second tower in Orange County. We estimate 11% marketing sales growth to Rp2.1tn for FY15F. For FY15F, we forecast higher marketing sales for commercial areas. We see upside if demand is better than expected. Creating value in Cikarang areas. Around 82ha would be designated as its CBD areas. The Orange County would have various facilities such as: a 390k sqm mall (likely to be built in phases), shopping strip, hotel, a 34k sqm hospital, and convention center. The first successful launch of Orange County should build positive precedence for LPCK s next high-rise projects. The mixed use projects would include office and apartment for sale. Catalyst for next year is ample. We expect the company to close its bulk sale of its office tower and/or apartment sometime next year. Additionally, the new government seems to be positive for the development of Cilamaya Port and Airport Karawang. Maintain Buy with higher TP of Rp12,300. On the back of better than expectation FY14F marketing sales, we raise our FY15F-16F NPAT by 10-15%. We also increase LPCK s NAV by 25% to Rp24,683 as we projected higher ASP for Lippo CBD areas. Hence, our new LPCK TP is Rp12,300 (based on 50% discount to NAV). We continue to be positive on LPCK due to positive development in the Eastern part of Jakarta. Key risk is higher than expected minimum wage increase in Karawang and Cikarang areas. Liliana S Bambang ( ) liliana.bambang@mandirisek.co.id Page 1 of 8

2 Soechi Lines: Maritime Maestro (SOCI; Rp550; Buy; TP:Rp880) PT Soechi Lines (SOCI) is the largest liquid and gas tanker player in the industry excluding Pertamina. Their shipping segment is supported by Indonesia s growing energy demand while the shipyard segment would be the key beneficiary from excalating maritime sector activities. We forecast net earnings to grow at 29% CAGR F. Initiate with BUY (TP:Rp880/share). Resilient to current state of oil price. SOCI s resilience to lower oil prices comes in two forms. First, 75% of their revenue is on a long term time-charter basis with a remaining weighted average contract length of 28 months. The charter rate is fixed for the duration of the contract. Second, their core business is transporting oil within Indonesia which means demand for their vessels is mainly derived from the energy consumption of Indonesia only. It is not affected by lower oil demand in other places such as China and Europe. We believe Indonesia s energy demand will be robust due to higher economic growth driven by its promising investment story. Indonesia economic growth will boost energy transportation activities. At a rate of +6.5% per year, Indonesia s energy demand continues to boom in order to support its second fastest GDP growth rate inside the G20. As Indonesia is the world s largest archipelago, any increase in energy consumption will inherently require more oil transportation by sea, thus increasing the demand for SOCI s vessels. Shipyard business to monetize shortage of docking facilities. According to Indonesia National Shipowner Association, there is a shortage of domestic docking facilities. As SOCI is building the largest shipyard in Indonesia with one of the deepest water levels, they can monetize this opportunity. We believe this shortage can further worsen because Jokowi s sea-highway program will increase the quantity and size of Indonesian-flagged vessels operating in this cabotage protected sector. This will create a stable source of recurring income for SOCI as vessels need to perform docking every 2.5 years. Initiate with Buy call with target price of Rp880/share (+60% upside). Our target price is based on 10x 2015F PE, which is a 10% premium to Indonesian OSV counters and 10% discount to Malaysian vessel owners. Key risks include non renewal of contracts, exchange rate fluctuation, execution risk of the shipyard segment, and equalisation of tax treatment for shipyards in Indonesia. Aditya Sastrawinata ( ) aditya.sastrawinata@mandirisek.co.id SECTOR Plantation: Re-emergence of the likeliness of El Nino (Overweight) Re-emergence of the likeliness of El Nino. Weather forecasters forecast the likeliness of El Nino has increased recently. The Australian weather forecaster has increased the probability of El Nino to happen to 70% and increase the El Nino warning from El Nino Watch to El Nino alert. Meanwhile, the US weather forecaster predicts El Nino to happen in 2Q15. El Niño-like impacts emerge in a number of areas. According to Australia weather forecaster report on 2 December 2014, Whether or not an El Niño fully develops, a number of El Niño-like impacts have already emerged. Some El Niño-like impacts have already been seen this spring in Australia and several regions around the globe, including Asia, South America and southern Africa. When El Nino materialize, CPO price tend to spike up. How to play? CPO price should increase when the El Nino materialize. We have a view that CPO price is in the uptrend. The movement of palm oil plantation share prices tends to be in-line with the movement of CPO price. LSIP (LSIP, Rp1,910, BUY, TP:Rp2,700) and SGRO (SGRO, Rp2,210, BUY, TP:Rp3,050) being our choice for beneficiaries of this uptrend. Page 2 of 8

3 FIGURE 1. US WEATHER FORECASTER PREDICTS EL NINO TO HAPPEN IN 2Q15 (EL NINO= NINO INDEX GREATER THAN OR EQUAL TO +0.5 C) WITH PROBABILITY OF 58% FIGURE 2. SOUTHERN OSCILLATION INDEX. SUSTAINED NEGATIVE VALUES BELOW 8 MAY INDICATE EL NIÑO EVENT. Source: NOAA Source: Australian Bureau of Meteorology Hariyanto Wijaya, CFA, CFP, CPA ( ) hariyanto.wijaya@mandirisek.co.id MARKET Market Recap Dec 2nd 2014; JCI: 5, (+0.22%); USD/IDR: 12,271; Total Value: Rp6.34tn Asian equities buoyed by relief seeing a rebound in crude oil and other commodity prices, favoring the stock market of resource-exporting countries. The currencies also saw sign of relief, capping the USD gain after Moody s downgrade Japan by one notch from Aa3 to A1. News of Chinese soft manufacturing data (which added to speculation that China may implement further stimulus) and Japanese government s decision to postpone an increase in sales tax (which intended to tackle its debt burden) further spurred buying interest. Indo market followed suit, with the JCI steadily climbed and traded at better range around 5,185. Toward the end, profit taking ensued and the JCI finally closed up 0.2% at 5,175 level. Similar names continued to garner followers including industrial estate (BSDE close +0.8% and SSIA close +3.6%), contractors (WIKA +3%, PTPP +0.5%, WSKT +5.5% and ADHI +0.5%), and cement (SMGR -1.1% and INTP +1%). EXCL (-4.3%) was aggressively hammered by foreign participants after removal from Sharia list and rumors of tower sale cancellation to SUPR (flat). Regular market transaction was recorded at Rp5.3tn (USD431.9mn) and volume rose to USD403mn. Foreign investors posted a net buy of Rp161.76bn (USD13.18mn) and foreign participants at 40% came up better buyer for 30%. Gainers beat losers by 3 to 2. TOP TURNOVER: BMRI BBCA ASII BBRI SMGR UNVR TLKM ADHI PGAS INTP BBNI WIKA UNTR ASRI ELSA WSKT (45%) ADVANCING SECTOR: property +1.1%; financial & mining +0.5%; consumer & infra +0.3%; DECLINING SECTOR: auto -1.8%; telco -1.5%; plantation -0.7%; cement -0.25% The yield of 10-year government increased 0.39% to 7.722% and Rupiah appreciated slightly to Rp12,271 (-0.08%). Sales Team Page 3 of 8

4 FROM THE PRESS Tiphone to raise Rp2trn-2.5trn in 2015 Tiphone (TELE IJ) is planning to raise Rp2trn-2.5trn next year to refinance its short term debt. The company is considering 2 options which are bonds issuance and loan syndication with target coupon rate below 10%. Currently, the company has around Rp1.8trn debt from multiple banks with total liabilities Rp2.9trn. (Investor Daily). Next year s oil production would be lower than earlier expectation SKKMigas official said that oil output next year would be slightly above 800k bpd, lower than 845k estimated earlier. Among the causes are another expected production delay in Central Java s Cepu Block. The government has set oil production assumption of 900k bpd in the APBN As of now, oil production stood at 791k bpd until October, less than 818k bpd targeted (The Jakarta Post) Page 4 of 8

5 Indices Currencies and ADRs Major Commodities Last Chg. (pts) Chg (%) Currency Last Chg. (pts) Chg. (%) Last Chg. (pts) Chg (%) JCI 5, Rp/US$ 12, Oil spot (US$/bl) Dow Jones 17, EUR/US$ Nickel spot (US$/mt) 16, Nikkei 17, YEN/US$ Gold spot (US$/oz) 1, SET 1, SGD/US$ Tin 3-month (US$/mt) 20, Hang Seng 23, CPO futures (Ringgit/ton) 2, STI 3, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 14, Rubber forward (US /kg) IIT in Rp 3, Coal (US$/ton)* Ishares indo Coal (US$/ton) * weekly price Baltic Dry Index 1, Property Valuation JCI Code Rec. Market Cap (Rp bn) Share price Target Price Discount to NAV RNAV per share (Rp) Premium (discount) to replacement cost Replacement cost per share (Rp) P/E 14F P/E 15F ROE 14F ROE 15F BSDE Buy 33, ,835 2,000-54% 4,002 19% 1, % 15.8% PWON Buy 25, % % % 29.3% SMRA Buy 22, ,560 1,550-50% 3, % % 20.7% CTRA Neutral 20, , % 1,647 73% % 19.0% JRPT Buy 14, ,035 1,130-63% 2,817 93% % 26.3% ASRI Neutral 10, % 1,538 33% % 18.8% APLN Buy 7, % 721 6% % 15.2% LPCK Buy 7, ,475 12,300-46% 19, % 4, % 28.6% MDLN Neutral 6, % 1,270 6% % 13.9% CTRS Buy 5, ,910 3,600-64% 8,077 5% 2, % 22.3% BKSL Neutral 3, % 1,010-48% % 10.8% -54% % 16.1% Plantation Valuation Ticker Rec. Market Cap (Rp bn) Share price Target Price planted (US$) EV/ha PER EV/EBITDA ROE Mature (US$) FY14F FY15F FY14F FY15F FY14F FY15F AALI Buy 36,534 23,200 30,800 13,953 16, % 25.8% LSIP Buy 13,032 1,910 2,700 9,755 11, % 17.7% SGRO Buy 4,177 2,210 3,050 6,396 8, % 16.1% Weighted average 11,479 14, % 12.2% SIMP* Not Rated 11, ,197 8, % 7.0% SSMS* Not Rated 13,907 1,460 34,744 36, % 33.8% Page 5 of 8

6 Equity Valuation Shares Price Price Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating (Mn) (Rp) Target (Rp Bn) Mandiri Universe 3,367, , , % 16.9% % 2.3% Banking 848,657 59,980 71, % 19.9% N.A. N.A % 1.8% BBCA Neutral 24,655 13,200 13, ,446 16,159 18, % 17.3% N.A. N.A % 1.3% BBNI Neutral 18,649 6,225 5, ,088 10,122 11, % 16.0% N.A. N.A % 2.6% BBRI Buy 24,660 11,650 13, ,396 23,215 28, % 21.3% N.A. N.A % 2.0% BBTN Buy 10,565 1,155 1,300 12,202 1,188 1, % 37.5% N.A. N.A % 2.4% BDMN Neutral 9,585 4,285 4,000 41,070 2,845 3, % 25.7% N.A. N.A % 2.1% BJBR Neutral 9, ,854 1,080 1, % 11.1% N.A. N.A % 6.2% BJTM Neutral 14, , , % 20.1% N.A. N.A % 9.2% BTPN Neutral 5,840 4,040 4,600 23,595 1,943 2, % 30.9% N.A. N.A % 0.0% PNBN Buy 24,088 1,170 1,150 28,183 2,435 2, % 19.2% N.A. N.A % 1.7% Infrastructure 319,202 16,509 18, % 13.2% % 2.0% SMCB Neutral 7,663 2,295 2,700 17,589 1,288 1, % 12.9% % 2.2% INTP Buy 3,681 25,675 24,000 94,516 5,582 6, % 11.7% % 1.9% SMGR Buy 5,932 16,500 18,300 97,870 5,901 6, % 12.9% % 3.0% ADHI Sell 1,801 2,845 2,300 5, % 6.6% % 1.9% PTPP Buy 4,842 3,250 2,800 15, % 32.5% % 1.0% WIKA Neutral 6,106 3,215 2,600 19, % 17.2% % 1.0% WSKT Neutral 9,632 1, , % 20.3% % 1.1% WTON Neutral 8,715 1, , % 18.5% % 1.0% JSMR Neutral 6,800 6,850 6,200 46,580 1,566 1, % 10.5% % 1.3% Consumer 511,725 18,733 22, % 21.9% % 1.8% AISA Neutral 3,000 2,270 2,500 6, % 11.9% % 0.0% GGRM Buy 1,924 61,125 68, ,610 5,571 6, % 15.2% % 1.8% ICBP Buy 5,831 11,400 13,500 66,473 2,638 3, % 20.8% % 2.0% INDF Buy 8,780 6,675 8,200 58,606 3,919 5, % 30.0% % 0.0% MYOR Neutral ,300 26,500 21, % 85.2% % 0.6% UNVR Buy 7,630 31,275 34, ,628 5,603 6, % 17.8% % 2.3% WIIM Buy 2, , % 44.0% % 3.6% DYAN Buy 4, % 41.8% % 0.0% Healthcare 108,051 3,226 4, % 24.8% % 1.3% KLBF Neutral 46,875 1,795 1,820 84,141 2,129 2, % 28.9% % 1.0% SIDO Buy 15, , % 13.4% % 1.7% TSPC Buy 4,500 3,080 4,000 13, % 19.1% % 2.7% Transportation 2, % 26.2% % 2.0% TAXI Buy 2,146 1,110 1,600 2, % 26.2% % 2.0% Retail 101,517 3,543 4, % 25.7% % 1.2% ACES Buy 17, , % 15.7% % 1.1% ERAA Neutral 2,900 1,205 1,000 3, % 13.6% % 2.7% LPPF Buy 2,917 15,050 16,500 43,901 1,359 1, % 36.3% % 0.8% MAPI Sell 1,660 5,650 4,000 9, % 89.4% % 0.3% MPPA Neutral 5,378 3,375 3,000 18, % 21.3% % 0.8% RALS Neutral 7, , % 3.3% % 3.9% RANC Sell 1, % 76.0% % 0.0% TELE Neutral 5, , % 13.5% % 2.4% Automotive 292,579 21,245 24, % 12.9% % 3.5% ASII U/R 40,484 7,000 U/R 283,385 20,554 23, % 11.9% % 3.6% IMAS U/R 2,765 3,325 U/R 9, % 39.5% % 1.8% Heavy Equipment 69,951 5,875 5, % -4.0% % 3.2% HEXA Buy 840 3,565 4,250 2, % 26.4% % 2.8% UNTR Sell 3,730 17,950 13,950 66,956 5,584 5, % -6.8% % 3.1% Plantation 53,743 4,071 5, % 25.7% % 3.7% AALI Buy 1,575 23,200 30,800 36,534 2,709 3, % 19.5% % 4.0% LSIP Buy 6,823 1,910 2,700 13, , % 38.9% % 3.1% SGRO Buy 1,890 2,210 3,050 4, % 36.1% % 3.1% Property 157,038 14,021 13, % -2.9% % 1.5% APLN Buy 20, , , % 32.5% % 2.1% ASRI Neutral 17, ,182 1,163 1, % 5.6% % 3.5% BKSL Neutral 31, , % 35.7% % 0.0% BSDE Buy 18,372 1,835 2,000 33,712 3,530 2, % -30.7% % 2.6% CTRA Neutral 15,166 1, ,550 1,209 1, % 25.7% % 1.2% Page 6 of 8

7 Shares Price Price Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating (Mn) (Rp) Target (Rp Bn) CTRS Buy 1,979 2,910 3,600 5, % 22.5% % 2.1% JRPT Buy 13,750 1,035 1,130 14, % 26.5% % 0.8% LPCK Buy ,475 12,300 7, % 7.9% % 0.0% MDLN Neutral 12, ,768 1, % -27.5% % 0.0% PWON Buy 48, ,043 2,447 2, % -18.2% % 2.2% SMRA Buy 14,425 1,560 1,550 22,503 1,134 1, % 24.2% % -0.6% Poultry 83,760 3,022 4, % 50.6% % 1.0% CPIN Buy 16,423 4,115 6,000 67,580 2,424 3, % 46.4% % 1.0% JPFA Buy 10,499 1,135 1,600 11, % 48.6% % 1.5% MAIN Sell 1,695 2,515 2,100 4, % 252.0% % 0.3% Energy 251,053 15,717 17,893 N/M 5.7% % 3.9% ADRO Buy 31,986 1,085 1,450 34,705 3,253 3, % 5.3% % 3.8% BUMI U/R 36, U/R 3,150-1,735-1, % -66.7% % 0.0% HRUM Neutral 2,699 1,650 2,400 4, % 8.6% % 6.5% ITMG Neutral 1,130 18,125 25,750 20,480 2,423 2, % 7.9% % 9.8% PTBA Neutral 2,304 12,825 9,700 29,555 1,717 2, % 25.8% % 3.7% MEDC U/R 3,332 3,615 U/R 12, % 242.9% % 1.5% PGAS Buy 24,240 6,050 6, ,661 9,319 9, % 8.6% % 3.3% Metal 56,841 1,219 3,330 N/M N/M % 2.5% ANTM U/R 9, U/R 9, % 619.0% % 1.1% BRMS U/R 25, U/R 8, % 75.0% n/a n/a 0.0% 0.0% INCO U/R 9,936 3,900 U/R 38,752 1,997 2, % 47.1% % 3.4% Telecommunication 426,684 18,211 21, % 17.5% % 2.6% EXCL Buy 8,524 4,880 6,700 41, N/M N/M % 0.4% ISAT U/R 5,434 3,905 U/R 21, ,048 N/M 133.8% % 2.3% TBIG Buy 4,657 9,375 10,800 44,967 1,514 1, % 6.1% % 0.0% TOWR Buy 10,203 4,100 5,000 41,832 1,153 1, % 24.3% % 0.0% TLKM Neutral 96,010 2,875 2, ,027 15,343 16, % 7.1% % 3.9% Media 84,769 3,424 4, % 30.5% % 2.1% SCMA Buy 14,622 3,435 4,000 50,225 1,560 2, % 35.0% % 1.6% MNCN Buy 14,099 2,450 3,500 34,544 1,864 2, % 26.7% % 2.7% Note: - *) means Company Data is using Bloomberg Data - U/R means Under Review - n/a means Not Available - N/M means Not Meaningful - N.A means Not Applicable Page 7 of 8

8 Mandiri Sekuritas A subsidiary of PT Bank Mandiri (Persero) Tbk Plaza Mandiri 28 th Floor, Jl. Jend. Gatot Subroto Kav , Jakarta 12190, Indonesia General: , Fax : (Equity Research), (Equity Sales) RESEARCH John Rachmat Head of Equity Research, Strategy john.rachmat@mandirisek.co.id Tjandra Lienandjaja Banking tjandra.lienandjaja@mandirisek.co.id Handoko Wijoyo Construction, Toll Road handoko.wijoyo@mandirisek.co.id Hariyanto Wijaya, CFA, CFP, CPA Plantation, Heavy eq., Energy hariyanto.wijaya@mandirisek.co.id Herman Koeswanto, CFA Consumer, Poultry herman.koeswanto@mandirisek.co.id Liliana S Bambang Property, Building Material liliana.bambang@mandirisek.co.id Ariyanto Kurniawan Telecom, Coal & Metal Mining ariyanto.kurniawan@mandirisek.co.id Matthew Wibowo Retail matthew.wibowo@mandirisek.co.id Rizky Hidayat Property, Media rizky.hidayat@mandirisek.co.id Vanessa Ariati Tanuwijaya Banking, Health Care vanessa.tanuwijaya@mandirisek.co.id Aldian Taloputra Economist aldian.taloputra@mandirisek.co.id Leo Putra Rinaldy Economist leo.rinaldy@mandirisek.co.id Aditya Sastrawinata Research Assistant aditya.sastrawinata@mandirisek.co.id Wisnu Trihatmojo Research Assistant wisnu.trihatmojo@mandirisek.co.id Yudha Gautama Research Assistant yudha.gautama@mandirisek.co.id INSTITUTIONAL SALES Lokman Lie Co-Head Institutional Equities lokman.lie@mandirisek.co.id Silva Halim Co-Head Institutional Equities silva.halim@mandirisek.co.id Andrew Handaya Institutional Sales andrew.handaya@mandirisek.co.id Cindy Amelia P. Kalangie Institutional Sales cindy.amelia@mandirisek.co.id Jane Theodoven Sukardi Institutional Sales jane.sukardi@mandirisek.co.id Janefer Amanda Soelaiman Institutional Sales janefer.soelaiman@mandirisek.co.id Karmia Tandjung-Nasution Institutional Sales karmia.tandjung@mandirisek.co.id Mirna Santikara Salim Institutional Sales santikara.salim@mandirisek.co.id Oos Rosadi Institutional Sales oos.rosadi@mandirisek.co.id Vera Ongyono Institutional Sales vera.ongyono@mandirisek.co.id Yohan Setio, CFA Institutional Sales yohan.setio@mandirisek.co.id Zahra Aldila Niode Institutional Sales zahra.niode@mandirisek.co.id Kusnadi Widjaja Equity Dealing kusnadi.widjaja@mandirisek.co.id Edwin Pradana Setiadi Equity Dealing edwin.setiadi@mandirisek.co.id RETAIL SALES Ridwan Pranata Head Retail Equities ridwan.pranata@mandirisek.co.id Boy Triyono Jakarta Branch boy.triyono@mandirisek.co.id Yohanes Triyanto Kelapa Gading Branch yohanes.triyanto@mandirisek.co.id Hendra Riady Mangga Dua Branch hendra.riady@mandirisek.co.id Umar Abdullah Pondok Indah Branch umar.abdullah@mandirisek.co.id Indra Mas ari Bandung Branch indra.mas ari@mandirisek.co.id Yuri Ariadi Pontianak Branch yuri.ariadi@mandirisek.co.id Ruwie Medan Branch ruwie@mandirisek.co.id INVESTMENT RATINGS: Indicators of expected total return (price appreciation plus dividend yield) within the 12-month period from the date of the last published report, are: Buy (10% or higher), Neutral (-10% to10%) and Sell (-10% or lower). DISCLAIMER: This report is issued by PT. Mandiri Sekuritas, a member of the Indonesia Stock Exchanges (IDX) and Mandiri Sekuritas is registered and supervised by the Financial Services Authority (OJK). Although the contents of this document may represent the opinion of PT. Mandiri Sekuritas, deriving its judgement from materials and sources believed to be reliable, PT. Mandiri Sekuritas or any other company in the Mandiri Group cannot guarantee its accuracy and completeness. PT. Mandiri Sekuritas or any other company in the Mandiri Group may be involved in transactions contrary to any opinion herein to make markets, or have positions in the securities recommended herein. PT. Mandiri Sekuritas or any other company in the Mandiri Group may seek or will seek investment banking or other business relationships with the companies in this report. For further information please contact our number or fax ANALYSTS CERTIFICATION: Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her views about the companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not and will not be influenced by any part or all of his or her compensation.