Earnings and target price revision. Price catalyst. Catalyst: FY13 results. Action and recommendation

Transcription

1 AUSTRALIA SUL AU Price (at 07:08, 22 Aug 2012 GMT) Outperform A$8.00 Volatility index Low/Medium 12-month target A$ month TSR % Valuation - EV/EBITA A$ GICS sector Retailing Market cap A$m 1, day avg turnover A$m 3.4 Number shares on issue m Investment fundamentals Year end 30 Jun 2012A 2013E 2014E 2015E Revenue m 1, , , ,238.1 EBIT m Reported profit m Adjusted profit m Gross cashflow m CFPS CFPS growth % PGCFPS x PGCFPS rel x EPS adj EPS adj growth % PER adj x PER rel x Total DPS Total div yield % Franking % ROA % ROE % EV/EBITDA x Net debt/equity % P/BV x SUL AU vs Small Ordinaries, & rec history Note: Recommendation timeline - if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period. Source: FactSet, Macquarie Research, August 2012 (all figures in AUD unless noted) 22 August 2012 Macquarie Securities (Australia) Limited Gold medal performance Event SUL reported FY12 NPAT of $83.5 (Macq E $81.7m). Adjusted NPAT of $95m up 71% (Macq E $92m). Reported results included $11.7m of Rebel acquisition and restructuring costs. Final dividend of 19cp (Macq E 19cps). Impact This would have been a good result in any retail environment and is a standout in the tough consumer environment that prevailed through FY12. The strong uplift in profits was driven by solid LFL growth and margin expansion in SCA and BCF formats and a better than initially forecast contribution from Rebel. Looking at the composition, Rebel has done better than forecast, outdoor leisure was lower. FCO and Goldcross were the two negatives in the result. There are clear plans to reduce the losses in Goldcross with the move into the sporting division and the conversion of the larger stores to AMart. FCO is a work in progress. Losses should reduce into FY13 without the initial set up and launch costs but further work is needed to increase brand awareness and build the offer particularly through the cooler months. Rebel has performed ahead of expectations. Sales momentum has been strong (LFL +5.8%) albeit assisted by the clearance of aged stock (reduced from 18% to 5%). Gross margins through FY12 were protected by provisions taken at time of acquisition. The $5m synergy target was achieved in FY12 and appears well on the way for the $10m identified for FY13. The group enters FY13 in very good shape. Each of the divisions has a clearly defined growth outlook and will benefit from the investment undertaken in this and prior years to be positioned to achieve this. The sales momentum has continued with Auto and Leisure LFL sales up circa 5% and further underlying EBIT margin expansion expected. Sports LFL s are up 7.5% (albeit against a weaker pre acquisition comparative period and with an unquantifiable tail wind from the Olympics). A full period contribution from Rebel together with a reduction in losses from FCO and Goldcross contributes over half of our EBIT uplift forecast into FY13. Earnings and target price revision FY13 EPS -2.5% due largely to higher depreciation. Price target rolled forward to $8.50. Was $7.70. Price catalyst 12-month price target: A$8.50 based on an EV/EBITA methodology. Catalyst: FY13 results. Action and recommendation While now trading on a premium multiple, SUL continues to be a standout performer in the retail sector. Please refer to the important disclosures and analyst certification on inside back cover of this document, or on our website

2 Analysis Fig 1 FY12 result snapshot A$m 1H11a 2H11a FY11a 1H12a 2H12a FY12a Change FY12e Change Revenue % % EBITDA % % Depreciation % % EBIT % % Net Interest Exp % % Pre-Tax Profit % % Tax Expense % % Net Profit % % Net Abnormals % Reported Earnings % % Adjusted Earnings % % Gross Cashflow % % Profit and Loss Ratios EPS EPS growth % 28% 24% DPS EBITDA/Sales EBIT/Sales Closing store # Source: Company data, Macquarie Research, August 2012 We have added back the $11.7m of Rebel acquisition and integration costs in our calculation of adjusted NPAT. FY12 results also included $2.7m in set up costs related to FCO in NZ. While these set up costs are not recurring we have treated them as normal operating expenses associated with brand rollout. Results also included a $1.5m trading loss from FCO and $5.9m loss from Goldcross. This was a very strong result from Super Retail group driven by strong sales momentum and margin improvement in the SCA and BCF formats and a better than expected initial contribution from Rebel. Excluding Rebel, sales would have increased 11%, EBIT 12%. Fig 2 Cash conversion A$m FY06(a) FY07(a) FY08(a) FY09 (a) FY10(a) FY11(a) FY12(e) EBITDA Operating Cashflow (reported) + Tax Paid Net interest paid Ungeared Pre tax Cashflow Profit to cash Conversion 85.0% 80.5% 102.5% 102.2% 75.3% 83.2% 90.3% Source: Company data, Macquarie Research, August 2012 Cash generation in the result was again good. Operating cashflow included $11m of business acquisition costs; underlying cash conversion was over 95%. $60.4m of capex included $31m of store fitout. Capex is expected to increase to circa $85m in FY13 with the investment in store rollout, refurbishment and systems being planned. The balance sheet finished with net debt of $341m, slightly below our forecasts (Macq E $362m). This is expected to reduce to ~$325m at end FY13 despite this increase in capex. SUL extended its debt facilities to $500m at the time of the Rebel acquisition. 22 August

3 Fig 3 Division detail A$m 1H11(a) 2H11(a) FY11(a) 1H12(a) 2H12(a) FY12(a) Change FY12(e) Change Sales Auto and Cycle % 755 0% Leisure % 457 0% Rebel % Total % % EBITDA Auto and Cycle % 91 1% Leisure % 51 22% Rebel % Corporate % -8 7% Total % 184-2% EBIT Auto and Cycle % 75 3% Leisure % 42 28% Rebel % Corporate % -8 7% Total % 153 1% EBIT% Auto and Cycle 7.5% 10.5% 9.0% 8.9% 10.4% 9.5% 9.9% Leisure 9.0% 7.6% 8.3% 9.6% 4.4% 7.2% 9.2% Rebel 13.7% 11.8% 12.3% 10.3% Total 7.4% 7.9% 8.0% 9.5% 9.9% 9.2% 9.3% Source: Macquarie Research, August 2012 Auto and cycle Results were in line with our forecasts although Goldcross losses were greater than anticipated and SCA underlying performance therefore stronger. Auto and cycle LFL sales were up 3.7% after being up 3.3% in 1st 10 months. For a format once considered mature by many, Super Cheap Auto continues to perform extremely strongly with impressive sales momentum and margin improvement. SCA LFL sales were up 3.9% with total sales up 6.8%. Auto EBITDA of $94.7m was up 9.5%. Gross margins increased a further 30bp after a big uplift in the prior year. Hedging profile ($1.02 vs $1.00 average exchange rates) mean far less currency tail winds in FY12 with improvement further testament to the strong work done on ranging, sourcing and supply chain. 7 net new stores were opened in FY12 (total 281). Net 6-8 are planned for FY13. Goldcross was again disappointing contributing a $5.9m EBIT loss and sales of 23.5%. Reduced promotional activity resulted in a good gross margin uplift (+6.4% to 41.2%) but came at the expense of sales (LFL -3.2%). There are clear plans to reduce the losses in Goldcross with the move into the Sports division and the conversion of the larger format stores to AMart. These stores have struggled to generate the sales productivity to cover fixed costs. The target is to convert 6 stores in the current year which should see losses reduce. Our forecasts assume $2.5m EBIT loss in FY13. Leisure Retailing Overall result reflects strong performance from BCF offset by FCO start up losses. Results were below our forecasts due to greater than expected losses from FCO and softer performance from Rays. Excluding FCO sales would have increased 16%, EBITDA 19%. Gross margins declined 120bp due largely to the product mix changes in Rays more than offsetting the ranging benefits at BCF. Results included $2.5m of start up costs incurred in the establishment of FCO and a further $1.7m in trading losses. Total sales from FCO were in the order of $10m. 13 stores have been opened but further rollout will be halted while the format is refined. The trading losses were disappointing and reflect softer sales in the Autumn and Winter period. Management report strong fishing sales and we expect much of the problem involves generating traffic and sales in the cooler months when fishing activity reduces. 22 August

4 Further work is needed to increase brand awareness and refine the offer. Management report a similar experience when SCA was launched in NZ. Our forecasts assume no repeat of the set up costs and trading losses of ~$1m in FY13. BCF like SCA continued to grow customer numbers, transaction values and average item values with LFL s reported to be high single digits. Sales are benefitting from the increased local ranging and introduction of new lines such as Kayaks. This format is about to undergo a refurbishment program which should continue to drive strong growth in sales and earnings if it achieves anything like the returns obtained by SCA. 13 new BCF stores were opened in FY12 and the target for this format lifted to 120 with the success of smaller 800m2 regional stores. Rays LFL sales were low single digit. FY12 has seen the introduction of more national brands and a clearer ranging proposition. The apparel and 4WD offers are reported to have gone well but partly offset by declines in BBQ s and outdoor furniture which are being phased out. Rays stores will commence a refurbishment program in FY13. It is still early days since the refresh and relaunch of the offer and while taking a little longer to ramp up growth in average customer numbers and item value suggest it is moving in the right direction. Sports Retailing Rebel performed well ahead of our forecasts and expectations at time of acquisition. Sales momentum has been strong (LFL +5.8%) albeit assisted by the clearance of aged stock (reduced from 18% to 5%). We are cautious of the stimulatory effect the discounting would have on underlying sales performance but regardless the underlying trend appears to have well and truly improved since acquisition. We see this as encouraging given other than management changes and changes in approach to staff communications, the operational improvements outlined in terms of range development, marketing, systems etc are yet to be implemented. Underlying sales have benefitted from the competitive pricing and promotional activity since acquisition. Gross margin at 46.8% was in line with that achieved prior to acquisition. Margins through FY12 were protected by provisions taken at time of acquisition. The $5m synergy target was achieved in FY12 and appears well on the way for the $10m identified for FY13. It is now expected to deliver slightly ahead of the acquisition business case that was presented new stores are planned for FY13 including the conversion of the Goldcross stores. LFL sales are up 7.5% in the first 7 weeks albeit against a weaker pre acquisition comparative period and with an unquantifiable tail wind provided by the Olympics. Sales are expected to slow into 2Q and the cycling of the start of the aggressive inventory clearance program. Fig 4 FY13 valuation Valuation EBITA Multiples Valuation FY13 EV/EBITA Valuation Low High Low High Auto and Cycle Retailing Leisure Retailing Rebel Corporate SCA EBITA FY $1,711.6 $1,838.7 Less Net Debt $317.5 $317.5 Equity Value $1,394.1 $1,521.2 Value Per share $7.09 $7.74 Source: Macquarie Research, August 2012 No material change to our earnings or valuation. Our price target rolled forward to $8.50 (was $7.70). While now trading on a premium multiple, SUL continues to be a standout performer in the retail sector. 22 August

5 (SUL:$8.00) 22-Aug-12 Interim results 1H/11A 2H/11A 1H/12A 2H/12A Profit & Loss 2011A 2012A 2013E 2014E Revenue Revenue $m EBITDA $m EBITDA $m Depreciation $m Depreciation $m Amortisation of goodwill $m Amortisation of goodwill $m EBIT $m EBIT $m Net Interest expense $m Net interest expense $m Pre-Tax Profit $m Pre-Tax Profit $m Tax Expense $m Tax Expense $m Net Profit $m Net Profit $m Outside equity interests $m Outside equity interests $m Net Abn/Extra $m Net Abnormals/Extra. $m Reported Earnings $m Reported Earnings $m Adjusted Earnings $m Adjusted Earnings $m Gross Cashflow $m Gross Cashflow $m EPS (Adj/dil) c EPS (adj/diluted) c EPS growth % EPS growth % CFPS c PE (adj) x CFPS Growth % CFPS c EBITDA/Sales % CFPS Growth % EBIT/Sales % PGCFPS x Earnings Split % DPS c Revenue Growth % Yield % EBIT Growth % Franking % Profit and Loss ratios 2011A 2012A 2013E 2014E Cashflow Analysis 2011A 2012A 2013E 2014E Revenue Growth % EBIT Growth % Pre-tax Profit $m EBITDA/Sales % Depreciation & Amortisation $m EBIT/Sales % Tax Paid $m Effective tax rate % Gross cashflow $m Payout ratio % Changes in working capital $m EV/EBITA x Other $m EV/EBITDA x Operating Cashflow $m EV/Sales x Acquisitions $m Balance sheet ratios Capex - Plant & Equip. $m ROE % Asset Sales $m ROA % Other $m ROFE % Investing cashflow $m Net Debt $m Dividend (ordinary) $m Net Debt/Equity % Equity raised $m Interest Cover x Other $m Gross Debt/EBITDA x Financing cashflow $m Price/NTA x NTA per share $ Net Change in cash/debt $m EFPOWA m Historical performance 2008A 2009A 2010A 2011A Balance Sheet 2011A 2012A 2013E 2014E Cash $m Revenue $m Receivables $m EBITDA $m Inventories $m Depreciation/Amortisation $m Investments $m EBIT $m Property, plant & equipment $m Net interest expense $m Intangibles $m Pre-Tax Profit $m Other Assets $m Tax Expense $m Total Assets $m Net Profit $m Payables $m Net Abn/Extra $m Short Term Debt $m Long Term Debt $m EPS (adj/dil) c Other Liabilities $m EPS growth % Total Liabilities $m Ordinary DPS c Shareholders Funds $m EBITDA/Sales % Minority Interests $m EBIT/Sales % Total Shareholders Equity $m ROE % ROFE % Total Funds employed $m , , ,528.5 EFPOWA m a 2011a 2012a 2013e Sales Auto and Cycles Outdoor Leisure Sporting Total sales Auto and Cycles Outdoor Leisure Sporting Admin Total EBITDA Source: Company data, Macquarie Research, August August

6 Important disclosures: Recommendation definitions Macquarie - Australia/New Zealand Outperform return >3% in excess of benchmark return Neutral return within 3% of benchmark return Underperform return >3% below benchmark return Benchmark return is determined by long term nominal GDP growth plus 12 month forward market dividend yield Macquarie Asia/Europe Outperform expected return >+10% Neutral expected return from -10% to +10% Underperform expected return <-10% Macquarie First South - South Africa Outperform expected return >+10% Neutral expected return from -10% to +10% Underperform expected return <-10% Macquarie - Canada Outperform return >5% in excess of benchmark return Neutral return within 5% of benchmark return Underperform return >5% below benchmark return Macquarie - USA Outperform (Buy) return >5% in excess of Russell 3000 index return Neutral (Hold) return within 5% of Russell 3000 index return Underperform (Sell) return >5% below Russell 3000 index return Volatility index definition* This is calculated from the volatility of historical price movements. Very high highest risk Stock should be expected to move up or down % in a year investors should be aware this stock is highly speculative. High stock should be expected to move up or down at least 40 60% in a year investors should be aware this stock could be speculative. Medium stock should be expected to move up or down at least 30 40% in a year. Low medium stock should be expected to move up or down at least 25 30% in a year. Low stock should be expected to move up or down at least 15 25% in a year. * Applicable to Australian/NZ/Canada stocks only Recommendations 12 months Note: Quant recommendations may differ from Fundamental Analyst recommendations Financial definitions All "Adjusted" data items have had the following adjustments made: Added back: goodwill amortisation, provision for catastrophe reserves, IFRS derivatives & hedging, IFRS impairments & IFRS interest expense Excluded: non recurring items, asset revals, property revals, appraisal value uplift, preference dividends & minority interests EPS = adjusted net profit / efpowa* ROA = adjusted ebit / average total assets ROA Banks/Insurance = adjusted net profit /average total assets ROE = adjusted net profit / average shareholders funds Gross cashflow = adjusted net profit + depreciation *equivalent fully paid ordinary weighted average number of shares All Reported numbers for Australian/NZ listed stocks are modelled under IFRS (International Financial Reporting Standards). Recommendation proportions For quarter ending 30 June 2012 AU/NZ Asia RSA USA CA EUR Outperform 55.67% 61.00% 53.43% 42.58% 69.23% 46.60% (for US coverage by MCUSA, 9.05% of stocks followed are investment banking clients) Neutral 30.50% 22.11% 36.99% 52.41% 28.02% 33.69% (for US coverage by MCUSA, 8.14% of stocks followed are investment banking clients) Underperform 13.83% 16.89% 9.59% 5.01% 2.75% 19.71% (for US coverage by MCUSA, 0.45% of stocks covered are investment banking clients) Company Specific Disclosures: Macquarie and its affiliates collectively and beneficially own or control 1% or more of any class of 's equity securities. Macquarie Bank Limited makes a market in the securities in respect of Super Cheap Auto Group Limited. The Macquarie Group acted as Joint Lead Manager and Underwriter to Limited in respect of an equity raising to fund the acquisition of Rebel Sport from Archer Capital, as announced on 17 October Within the last 12 months, Macquarie Group has received compensation for investment advisory services from Limited. Important disclosure information regarding the subject companies covered in this report is available at Analyst Certification: The views expressed in this research accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst principally responsible for the preparation of this research receives compensation based on overall revenues of Macquarie Group Ltd ABN (AFSL No ) (MGL) and its related entities (the Macquarie Group) and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations. General Disclaimers: Macquarie Securities (Australia) Ltd; Macquarie Capital (Europe) Ltd; Macquarie Capital Markets Canada Ltd; Macquarie Capital Markets North America Ltd; Macquarie Capital (USA) Inc; Macquarie Capital Securities Ltd and its Taiwan branch; Macquarie Capital Securities (Singapore) Pte Ltd; Macquarie Securities (NZ) Ltd; Macquarie First South Securities (Pty) Limited; Macquarie Capital Securities (India) Pvt Ltd; Macquarie Capital Securities (Malaysia) Sdn Bhd; Macquarie Securities Korea Limited and Macquarie Securities (Thailand) Ltd are not authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia), and their obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN (MBL) or MGL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of any of the above mentioned entities. MGL provides a guarantee to the Monetary Authority of Singapore in respect of the obligations and liabilities of Macquarie Capital Securities (Singapore) Pte Ltd for up to SGD 35 million. This research has been prepared for the general use of the wholesale clients of the Macquarie Group and must not be copied, either in whole or in part, or distributed to any other person. If you are not the intended recipient you must not use or disclose the information in this research in any way. If you received it in error, please tell us immediately by return and delete the document. We do not guarantee the integrity of any s or attached files and are not responsible for any changes made to them by any other person. MGL has established and implemented a conflicts policy at group level (which may be revised and updated from time to time) (the "Conflicts Policy") pursuant to regulatory requirements (including the FSA Rules) which sets out how we must seek to identify and manage all material conflicts of interest. Nothing in this research shall be construed as a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction. In preparing this research, we did not take into account your investment objectives, financial situation or particular needs. Macquarie salespeople, traders and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions which are contrary to the opinions expressed in this research. Macquarie Research produces a variety of research products including, but not limited to, fundamental analysis, macro-economic analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may differ from recommendations contained in other types of research, whether as a result of differing time horizons, methodologies, or otherwise. Before making an investment decision on the basis of this research, you need to consider, with or without the assistance of an adviser, whether the advice is appropriate in light of your particular investment needs, objectives and financial circumstances. There are risks involved in securities trading. The price of securities can and does fluctuate, and an individual security may even become valueless. International investors are reminded of the additional risks inherent in international investments, such as currency fluctuations and international stock market or economic conditions, which may adversely affect the value of the investment. This research is based on information obtained from sources believed to be reliable but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. No member of the Macquarie Group accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this research and/or further communication in relation to this research. Clients should contact analysts at, and execute transactions through, a Macquarie Group entity in their home jurisdiction unless governing law permits otherwise. The date and timestamp for above share price and market cap is the closed price of the price date. #CLOSE is the final price at which the security is traded in the relevant exchange on the date indicated. Country-Specific Disclaimers: Australia: In Australia, research is issued and distributed by Macquarie Securities (Australia) Ltd (AFSL No ), a participating organisation of the Australian Securities Exchange. New Zealand: In New Zealand, research is issued and distributed by Macquarie Securities (NZ) Ltd, a NZX Firm. Canada: In Canada, research is prepared, approved and distributed by Macquarie Capital Markets Canada Ltd, a participating organisation of the Toronto Stock Exchange, TSX Venture Exchange & Montréal Exchange. Macquarie Capital Markets North America Ltd., which is a registered brokerdealer and member of FINRA, accepts responsibility for the contents of reports issued by Macquarie Capital Markets Canada Ltd in the United States 22 August

7 and sent to US persons. Any person wishing to effect transactions in the securities described in the reports issued by Macquarie Capital Markets Canada Ltd should do so with Macquarie Capital Markets North America Ltd. The Research Distribution Policy of Macquarie Capital Markets Canada Ltd is to allow all clients that are entitled to have equal access to our research. United Kingdom: In the United Kingdom, research is issued and distributed by Macquarie Capital (Europe) Ltd, which is authorised and regulated by the Financial Services Authority (No ). Germany: In Germany, this research is issued and/or distributed by Macquarie Capital (Europe) Limited, Niederlassung Deutschland, which is authorised and regulated by the UK Financial Services Authority (No ). and in Germany by BaFin. France: In France, research is issued and distributed by Macquarie Capital (Europe) Ltd, which is authorised and regulated in the United Kingdom by the Financial Services Authority (No ). Hong Kong & Mainland China: In Hong Kong, research is issued and distributed by Macquarie Capital Securities Ltd, which is licensed and regulated by the Securities and Futures Commission. In Mainland China, Macquarie Securities (Australia) Limited Shanghai Representative Office only engages in nonbusiness operational activities excluding issuing and distributing research. Only non-a share research is distributed into Mainland China by Macquarie Capital Securities Ltd. Japan: In Japan, research is issued and distributed by Macquarie Capital Securities (Japan) Limited, a member of the Tokyo Stock Exchange, Inc. and Osaka Securities Exchange Co. Ltd (Financial Instruments Firm, Kanto Financial Bureau (kin-sho) No. 231, a member of Japan Securities Dealers Association and The Financial Futures Association of Japan and Japan Securities Investment Advisers Association). India: In India, research is issued and distributed by Macquarie Capital Securities (India) Pvt Ltd., 92, Level 9, 2 North Avenue, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai , India, which is a SEBI registered Stock Broker having membership with National Stock Exchange of India Limited (INB ) and Bombay Stock Exchange Limited (INB ). Malaysia: In Malaysia, research is issued and distributed by Macquarie Capital Securities (Malaysia) Sdn. Bhd. (Company registration number: W) which is a Participating Organisation of Bursa Malaysia Berhad and a holder of Capital Markets Services License issued by the Securities Commission. Taiwan: Information on securities/instruments that are traded in Taiwan is distributed by Macquarie Capital Securities Ltd, Taiwan Branch, which is licensed and regulated by the Financial Supervisory Commission. No portion of the report may be reproduced or quoted by the press or any other person without authorisation from Macquarie. Nothing in this research shall be construed as a solicitation to buy or sell any security or product. Research Associate(s) in this report who are registered as Clerks only assist in the preparation of research and are not engaged in writing the research. Thailand: In Thailand, research is produced with the contribution of Kasikorn Securities Public Company Limited, issued and distributed by Macquarie Securities (Thailand) Ltd. Macquarie Securities (Thailand) Ltd. is a licensed securities company that is authorized by the Ministry of Finance, regulated by the Securities and Exchange Commission of Thailand and is an exchange member of the Stock Exchange of Thailand. Macquarie Securities (Thailand) Limited and Kasikorn Securities Public Company Limited have entered into an exclusive strategic alliance agreement to broaden and deepen the scope of services provided to each parties respective clients. The strategic alliance does not constitute a joint venture. The Thai Institute of Directors Association has disclosed the Corporate Governance Report of Thai Listed Companies made pursuant to the policy of the Securities and Exchange Commission of Thailand. Macquarie Securities (Thailand) Ltd does not endorse the result of the Corporate Governance Report of Thai Listed Companies but this Report can be accessed at: South Korea: In South Korea, unless otherwise stated, research is prepared, issued and distributed by Macquarie Securities Korea Limited, which is regulated by the Financial Supervisory Services. Information on analysts in MSKL is disclosed at South Africa: In South Africa, research is issued and distributed by Macquarie First South Securities (Pty) Limited, a member of the JSE Limited. Singapore: In Singapore, research is issued and distributed by Macquarie Capital Securities (Singapore) Pte Ltd (Company Registration Number: C), a Capital Markets Services license holder under the Securities and Futures Act to deal in securities and provide custodial services in Singapore. Pursuant to the Financial Advisers (Amendment) Regulations 2005, Macquarie Capital Securities (Singapore) Pte Ltd is exempt from complying with sections 25, 27 and 36 of the Financial Advisers Act. All Singapore-based recipients of research produced by Macquarie Capital (Europe) Limited, Macquarie Capital Markets Canada Ltd, Macquarie First South Securities (Pty) Limited and Macquarie Capital (USA) Inc. represent and warrant that they are institutional investors as defined in the Securities and Futures Act. United States: In the United States, research is issued and distributed by Macquarie Capital (USA) Inc., which is a registered broker-dealer and member of FINRA. Macquarie Capital (USA) Inc, accepts responsibility for the content of each research report prepared by one of its non-us affiliates when the research report is distributed in the United States by Macquarie Capital (USA) Inc. Macquarie Capital (USA) Inc. s affiliate s analysts are not registered as research analysts with FINRA, may not be associated persons of Macquarie Capital (USA) Inc., and therefore may not be subject to FINRA rule restrictions on communications with a subject company, public appearances, and trading securities held by a research analyst account. Any persons receiving this report directly from Macquarie Capital (USA) Inc. and wishing to effect a transaction in any security described herein should do so with Macquarie Capital (USA) Inc. Important disclosure information regarding the subject companies covered in this report is available at or contact your registered representative at MAC-STOCK, or write to the Supervisory Analysts, Research Department, Macquarie Securities, 125 W.55th Street, New York, NY Macquarie Group 22 August