Market trends June 2017:Tadawul closes near 2-year high

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1 Food & Bev Banks HC Equip & Svc Cons Dura & App Transport Cap Goods Individual Portfolio investors Corporates Strategic Partners Mutual Funds GRE's Key gainers during June 2017 rally St o ck 1 mo nt h ret urn NCB 29.0% M a'aden 27.6% Samba 16.1% SABB 15.5% SEC 1 Bupa Arabia 14.7% Banque Saudi Fransi 14.2% Almarai 13.7% Savola 13.1% ANB 12.7% Jabal Omar 12.3% Saudi Telecom Co 11.0% Al Rajhi Bank 9.9% Tadawul 8.2 % Market ownership: Gainers/ losers since Aug % 4.0% 2.0% -2.0% -4.0% -6.0% -4.3% -1.5% -0.9% 3.1% 5.1% Major sectoral gainers/ losers in last 3 months* 35% 25% 15% 5% -5% -15% -25% 27.3% 15.4% *Note: Above data is until end of July 3, 2017 Mazen Al-Sudairi, Head of Research Tel , alsudairim@alrajhi-capital.com Nivedan Reddy Patlolla, CFA Senior Research Analyst patlollan@alrajhi-capital.com % change in sector index level -9.9% -11.7% -20.6% June 2017:Tadawul closes near 2-year high Tadawul s 7% spurt in the last two trading sessions of June 2017 was accompanied by a significant rise in traded value (SAR18bn in two days) which helped the average daily traded value (ADTV) for the month to rise to SAR3.6bn. The holy month of Ramadan, which fell in June 2017 this year, generally witnesses lower ADTV vs. the previous three months. However, the late spurt in Tadawul helped reverse this trend in The significant buying activity followed the twin developments of (a) MSCI placing Saudi stocks on the watch-list for a potential inclusion in the MSCI EM Index, likely in 2019, if most of the conditions (including feedback from QFIs) are met, and (b) the royal decree to appoint HRH Mohammed Bin Salman as the Crown Prince of the Kingdom, which stoked investor interest due to higher visibility on the implementation of the flagship transformation programs of the Kingdom i.e. NTP 2020 and Vision Following are the key takeaways from the market trends in June 2017: (a) Saudi MFs lead buying activity: The pattern of buying activity evoked a sense of Déjà vu driven as it was by mutual funds, something similar to that witnessed during the October/ November 2016 rally when Tadawul gained 24% in two months driven by mutual funds buying. To be precise, the October/ November 2016 rally was driven by Private funds, a subset of mutual funds. The SAR9bn net buying by mutual funds for the week ended 22 June, 2017 (source: Tadawul), much above the average of SAR1-2bn weekly net buying by public mutual funds, points to the return of Private funds. We await the release of CMA s quarterly bulletin to confirm the same. The Saudi MFs market ownership now stands at 5.7%, representing a YTD gain of 43bps. GREs (Government Related Entities), the investor segment with highest market ownership at 40.8% currently, continues to outpace other investor segments in terms of gain in market ownership. GREs gained 138bps market ownership in YTD, most of it in the last two months. We have previously mentioned that GREs, despite their passive strategy (no significant buying in the market) continue to gain market ownership riding on the price rise of key holdings (e.g. SABIC, Ma aden, NCB, SEC). (b) QFI ownership continues to gain traction: Unlike the switch from swaps, which has driven higher QFI ownership in the previous few months, the increase in June 2017 QFI ownership appears to be led by fresh buying by the QFIs, as the swap ownership remained flat. This is positive in our view and like we have said previously, QFI ownership may start inching up as MSCI has already placed Saudi stocks on the watch-list for potential MSCI EM inclusion. (c) Key takeaways from market positioning: The sectors with high interest (both price increase and higher than average traded value) in the last 3 months were Banks, consumer sectors i.e. Retailing, Food, Healthcare, and defensive sectors i.e. Utilities and Telecom services. Conversely, witnessing low interest were Materials (Petchem and Cement), Insurance, Capital Goods, Transport and Diversified Financials. Please see penultimate page for additional important disclosures. Al Rajhi Capital (Al Rajhi) is a foreign broker-dealer unregistered in the USA. Al Rajhi research is prepared by research analysts who are not registered in the USA. Al Rajhi research is distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer.

2 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Key trends Spurt in June helps Tadawul close near 2-year high We mentioned in the previous reports that the Tadawul trading volumes during Jan-May 2017 have been ~35-40% lower vs. last year. However, despite majority of the holy month of Ramadan falling in June 2017, when trading volumes are generally lower compared to previous 3 months, Tadawul s average daily traded value (ADTV) was SAR3.6bn in June 2017, higher than that of the previous 3 months, aided by a significant rise in traded value i.e. SAR18bn in the last two trading days of June The significant buying activity followed the twin developments of (a) MSCI placing Saudi stocks on the watch-list for a potential inclusion in the MSCI EM Index, likely in 2019, if most of the conditions (including feedback from QFIs) are met, and (b) the royal decree to appoint HRH Mohammed Bin Salman as the Crown Prince of the Kingdom, which stoked investor interest due to higher visibility on the implementation of the flagship transformation programs of the Kingdom i.e. NTP 2020 and Vision TASI gained 8% in June 2017 to close at 7,425, with most of the gains coming in the last two trading days of the month. Overall, YTD Tadawul traded value is 37% lower compared to the same period last year and 41% lower than the long term average (last 6 years). Figure 1 TASI average daily trading value, soft for much of 2017, improves in June Avg daily traded value (SAR bn) REITs traded value settling at lower levels As we outlined in our previous two reports on market trends, the REIT traded volumes have been highly volatile. The traded value listed REITs comprised as high as 20% of the total Tadawul traded value on some trading days. On 15 trading days in YTD 2017, the traded value of REITs accounted for 10%+ of TASI traded value. This is despite the fact that the combined market cap of all the listed REIT funds stands at just ~SAR2bn vs. ~SAR1,760bn market cap of TASI. However, the volatility is now showing signs of normalizing with the REIT traded value not exceeding 10% of TASI traded value since the 2 nd week of May 2017 (see chart 5). The volatility of REIT funds traded value further normalized in June 2017 with average REIT funds traded value of just 2.8% of TASI traded value. Note: Following the publication of REIT regulations by the CMA in October 2016, Riyad REIT and AlJazira Mawten REIT were listed on Tadawul on November 13, 2016 and Disclosures Please refer to the important disclosures at the back of this report. 2

3 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 3-Sep-15 3-Oct-15 3-Nov-15 3-Dec-15 3-Jan-16 3-Feb-16 3-Mar-16 3-Apr-16 3-May-16 3-Jun-16 3-Jul-16 3-Aug-16 3-Sep-16 3-Oct-16 3-Nov-16 3-Dec-16 3-Jan-17 3-Feb-17 3-Mar-17 3-Apr-17 3-May-17 3-Jun-17 1-Jan-17 8-Jan Jan Jan Jan Jan Jan-17 1-Feb-17 6-Feb-17 9-Feb Feb Feb Feb Feb-17 2-Mar-17 7-Mar Mar Mar Mar Mar Mar-17 2-Apr-17 5-Apr Apr Apr Apr Apr Apr-17 1-May-17 4-May-17 9-May May May May May May-17 4-Jun-17 7-Jun Jun Jun Jun-17 2-Jul-17 February 15, 2017 respectively. Newer funds, Jadwa AlHaramain REIT and Taleem REIT, got listed on April 30, 2017 and May 30, 2017 respectively. Figure 2 After stabilising in May 2017, volatility of REIT trading volumes appear to have further subsided in June 2017, despite 4th REIT fund being launched at the end of May TASI traded value (SAR bn) REIT traded value as % of TASI traded value - RHS Figure 3 Saudi MFs make their presence felt in June 2017 with high trading volumes/ gain in market ownership Saudi MFs lead net buying, strong GRE ownership gains continue Saudi MFs lead buying activity: Saudi MFs were the leading net buyers in June 2017, having bought net SAR9.3bn, with most of it in the last two trading days when TASI gained a solid 7%. However, the pattern of buying activity evoked a sense of Déjà vu driven as it was mainly by mutual funds, something similar to that witnessed during the October/ November 2016 rally when Tadawul gained 24% in two months driven by mutual funds buying. To be precise, the October/ November 2016 rally was driven by Private funds, a subset of mutual funds. The SAR9bn net buying by mutual funds for the week ended 22 June, 2017, much above the average of SAR1-2bn weekly net buying by public mutual funds, points to the return of Private funds. We await the release of CMA s quarterly bulletin to confirm the same. The Saudi MFs market ownership now stands at 5.7%, representing YTD gain of 43bps and monthly gains of 10bps. Figure 4 Saudi Individuals continue to cede market ownership, majorly led by IPIs % 33.0% % 4.5% 32.0% 31.0% 19.5% 19.0% 18.5% 18.0% % 3.5% 3.0% 2.5% 2.0% % 28.0% 27.0% 17.5% 17.0% 16.5% 16.0% 15.5% 1 Saudi MFs monthly net buying (SAR bn) Ownership % - RHS Saudi Individuals ownership IPI ownership - RHS Disclosures Please refer to the important disclosures at the back of this report. 3

4 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 H H H H H Q Q Q Q Q Q Q Q Strong GRE ownership gains continue: GREs (Government Related Entities), the investor segment with highest market ownership at 40.8% currently, continue to outpace other investor segments in terms of gain in market ownership. GREs gained 138bps market ownership in YTD, most of it in the last two months. We have previously mentioned that GREs, despite their passive strategy (no significant buying in the market) continue to gain market ownership riding on the price rise of key holdings (e.g. SABIC, Ma aden, NCB, SEC). Figure 5 GRE stocks outperformance Company Govt holding Relative performance vs. TASI 1 month 1 Year 3 Year Saudi Basic Industries Corp 75.7% -3.5% 12.6% 11.8% Saudi Telecom Co 83.8% 2.8% 4.6% 31.9% Saudi Electricity Co 81.2% 6.9% 17.7% 86.3% National Commercial Bank 64.3% 20.8% 24.3% NA n Mining Co 65.4% 19.4% 28.2% 90.1% Samba Financial Group 49.7% 7.9% 14.1% 31.6% Riyad Bank 47.7% -1.1% -12.7% -16.4% n Fertilizer Co 44.7% -10.3% -6.9% -26.8% Yanbu National Petrochemical Co 50.5% -11.8% 16.9% 0.3% National Shipping Co of 42.6% -3.1% -18.7% 35.2% Market ownership gainers/ losers: While GREs gained 710 bps market ownership over the last 3 years (from 33.7% in June 2013 to 40.8% in June 2017), Saudi MFs gained 240bps market ownership in just the last one year (from 3.2% in May 2016 to 5.6% in May 2017). Most of the gains of Saudi MFs happened in October December 2016 (200 bps gain in this period). Most of the gains of GREs/ Saudi MFs are at the expense of Saudi Individuals (mainly from IPI segment). Figure 6 Institutions continue to gain market ownership Figure 7 mainly driven by GREs in the long term 66.0% % 63.0% 62.0% 32.5% 66.0% +620 bps 33.0% 32.0% 31.0% % 39.0% 37.0% % 36.6% 33.7% 40.8% +710bps 61.0% -520bps 29.0% 31.0% % 59.8% 27.4% 28.0% 27.0% 29.0% 27.0% -930 bps 27.4% Saudi Institutions market ownership Saudi Individuals market ownership - RHS GRE (part of Saudi Institutions) market ownership Saudi Individuals market ownership Source: Tadawul Source: CMA, Tadawul Disclosures Please refer to the important disclosures at the back of this report. 4

5 Materials Banks Insurance RE Mgmt & Dev Cap Goods Food & Bev Consumer Svc Tel Svc Energy Retail Media Transport Healthcare Comm & Prof Svc Food & Stapl Ret REITs Utilities Cons Dura Diversified Fin Phar, Bio & LS 1-Aug-15 1-Sep-15 1-Oct-15 1-Nov-15 1-Dec-15 1-Jan-16 1-Feb-16 1-Mar-16 1-Apr-16 1-May-16 1-Jun-16 1-Jul-16 1-Aug-16 1-Sep-16 1-Oct-16 1-Nov-16 1-Dec-16 1-Jan-17 1-Feb-17 1-Mar-17 1-Apr-17 1-May-17 1-Jun-17 1-Aug-15 1-Sep-15 1-Oct-15 1-Nov-15 1-Dec-15 1-Jan-16 1-Feb-16 1-Mar-16 1-Apr-16 1-May-16 1-Jun-16 1-Jul-16 1-Aug-16 1-Sep-16 1-Oct-16 1-Nov-16 1-Dec-16 1-Jan-17 1-Feb-17 1-Mar-17 1-Apr-17 1-May-17 1-Jun-17 QFI ownership gains traction Unlike the switch from swaps, which has driven higher QFI ownership in the previous few months, the increase in June 2017 QFI ownership appears to be led by fresh buying by the QFIs, as the swap ownership remained flat. This is positive in our view and like we have said previously, QFI ownership may start inching up as MSCI has already placed Saudi stocks on the watch-list for potential MSCI EM inclusion. Figure 8 QFI ownership continues to rise in June Figure 9 despite flat SWAP ownership, suggesting net QFI buying % 0.32% 0.27% 0.22% 0.17% 0.12% 0.07% 0.02% (0.50) (1.00) (1.50) (2.00) (2.50) 1.20% 1.10% 1.00% 0.90% 0.80% 0.70% (0.50) -0.03% (3.00) 0.60% QFI net buying (SAR bn) QFI ownership - RHS SWAP net buying (SAR bn) SWAP ownership - RHS What is the market thinking? In this report, we tried to pick broad trends in the market using trading volumes and price action of various sectors: By traded value, Real Estate, Banks & REITs sectors witnessed heightened investor interest in the last 3 months, while Insurance, Materials (Petchem + Cement) and Capital Goods sectors witnessed lower investor interest. By price level, apart from defensives (Food & Beverages, Utilities and Telecom services), Banks also witnessed price appreciation, while REITs (which significantly appreciated over the previous few months) witnessed price corrections. In the following charts, we outline the sectors which witnessed higher investor interest over the last 3 months. If the sector s current contribution to Tadawul s traded value is higher/ lower vs. its historical average, it potentially indicates higher/ lower investor interest respectively in the sector. Figure 10 Major sectors: Traded value vs. historical average Figure 11 Other sectors: Traded value vs. historical average % 6.0% % % 2.0% 1.5% 1.0% 4.0% 3.0% 2.0% 0.5% 1.0% Sector traded value/ Tadawul (Historical) Sector traded value/ Tadawul (last 3 months) - RHS Sector traded value/ Tadawul (Historical) Sector traded value/ Tadawul (last 3 months) - RHS Disclosures Please refer to the important disclosures at the back of this report. 5

6 Food & Bev Banks Retail Tel Svc Utilities HC Equip & Svc Materials RE Mgmt & Dev Media Food & Stapl Ret Insurance Energy Phar, Bio & LS Consumer Svc Comm & Prof Svc Diversified Fin REITs Cons Dura & App Transport Cap Goods Figure 12 Changes in price levels (April - June 2017) % % 13.9% 12.0% 9.7% 1 4.7% 2.7% 2.3% 0.8% 0.4% % -2.4% -2.4% -3.7% -4.7% -7.6% -7.8% -9.9% -11.7% % -3 Change in index level - last 3 months (%) Note: Sectors which are currently witnessing heightened investor interest (or vice versa) are determined by comparing the sector s contribution to Tadawul traded value over April June 2017 vs. historical average (last 2 years). Further, sectors which are currently in-favour or out-of-favour are determined based on price change (levels of sectoral indices). Key takeaways from market positioning Sectors with high investor interest (both price increase and traded value) were Banks and consumer sector/ defensives (Food & Beverages, Retailing, Telecom, Healthcare and Utilities). REITs, which have gained significantly in the past few months, witnessed price correction. The market positioning in the last 3 months implies that investors focused on (a) sectorial rotation, with profit taking in sectors which already had significant rally (e.g. REITs), (b) investments continuing in defensive sectors, and (c) fresh buying in the heavyweight Banking sector. Petrochemicals, the heavyweight sector of Tadawul, witnessed no significant price action, as crude oil prices remained volatile. Leading TASI stocks gain the most in June 2017: As mentioned in the previous section of the report, the stocks that gained the most in June 2017 were the leading TASI stocks. For instance, majority of the 8% TASI rally in June 2017 was driven by a handful of the stocks. Of the 176 listed companies on the Tadawul, only 21 companies managed to beat TASI in June 2017, pointing to high concentration of stocks which perform during swift market rallies such as those of October/ November 2016 and June In the following table, we attribute fundamental reasons for the significant price action of some stocks over April 2017 June 2017 period: Disclosures Please refer to the important disclosures at the back of this report. 6

7 Figure 13 Stocks with significant price action Company 3M price perf (%) Comments NCB 41 Valuation catching up to other leading banks. Almarai 37 Fawaz Al Hokair 31 Q results were marginally ahead of consensus estimates, however, this does not justify the increase in stock price. The stock is overvalued in our opinion, and we maintain underweight rating on the stock. Strong Q4FY17 results and expectations of gross margins sustaining at 20%+ led to appreciation in the stock price. Samba Financial 23 Lower Loan to Deposit ratio leaves a lot of room for further ramp up. Savola 22 Savola stock has risen tracking the significant price appreciation of its key associate, Almarai (Savola holds 37.5% of Almarai). National Medical Care (12) Pricing revisions with a major government client as well as weak Q1 results. Easter Province Cement (13) Shaker (18) NIC (20) Sipchem (21) Medgulf (28) Source: Al Rajhi Capital Sales volume declined 24% y-o-y in the last 3 months (vs. sector average of -17.5%). Also, the continuous halting on Bahrain exports is likely to impact 2017 earnings. Stock declined sharply post the unexpected loss in Q1 2017, led by weak revenue which was also much lower than expectations. The stock declined significantly post announcement of weak Q1 financials. Additional clarity on its business segments highlighted that estimated earnings in 2017 are likely to be much lower than prior consensus estimates. Sentiments on Methanol, one of Sipchem s key products, have turned bearish and has been one of the major factors driving the stock lower. Announcement of shutdown of its VAM plant also implies lower than expected earnings in MedGulf plunged after Q results, when it posted SAR93mn loss vs. profit a year-earlier. The company cited a jump in provisions for doubtful debts and lower net underwriting income. Combining the traded value and price data points, the following heat map shows sectors allocated to various quadrants on the traded value and price axes. Generally, sectors with both higher than average traded value and price increase are considered to have bullish bias. Vice versa i.e. lower than average traded value and price decline is generally considered to have a bearish bias. Figure 14 Sectoral heat map: Traded value and price action in last 3 months Lower than average volume Higher than average volume Price Decline Insurance Pharma & Bio Consumer Services Comm & Professional srvcs Diversified Financials Consumer Durables Transport Capital Goods Energy REITs Price Increase Materials Real Estate Mgmt & Dev Media Food & Staples Retail Telecom services Utilities Banks Retailing Healthcare Food & Beverages Disclosures Please refer to the important disclosures at the back of this report. 7

8 Appendix Figure 15 Investor categories as classified by Tadawul Naitonality Investor category Definition Individuals Retail Retail investors are Saudi individuals, excluding IPIs (see below) and HNWIs High Net Worth Investors (HNWIs) HNWIs are Saudi individuals who have had an average portfolio size of SAR 1m (and above) for the preceding 12 months, excluding IPIs IPIs are Saudi individuals who have had an average portfolio size of SAR 50m (and above) for the preceding 12 Saudi Individual Professional Investors (IPIs) months and a portfolio turnover ratio of not more than 4 times annually Saudi individual investment account in which the manager (Authorized Person) makes the buy/sell decisions for Individual DPMs its client without referring to the account owner (based on to the agreed terms between them) Institutions Corporates Saudi company with a commercial registration permitting its investment in the stock market Mutual Funds A mutual fund managed by an Authorized Person and licensed by the CMA Government Related Entities (GREs) A Government entity or a supranational authority recognized by the CMA Saudi institutional investment account in which the manager (Authorized Person) makes the buy/sell decisions for Institutional DPMs its client without referring to the account owner (based on to the agreed terms between them) GCC Individuals GCC natural person Institutions GCC legal person with a commercial registration certificate (corporate or mutual fund), in addition to GCC government entities Foreign Source: Tadawul GCC DPMs SWAP Holders Foreign Residents QFIs Foreign DPMs Strategic Partners GCC investment account (institutional or individual) in which the manager (Authorized Person) makes the buy/sell decisions for its client without referring to the account owner (based on to the agreed terms between them) Authorized Person with the permission to enter into SWAP agreements to transfer the economic benefits of its ownership of shares in Saudi companies listed on the Saudi Stock Exchange to its non-resident foreign clients Foreign investors domiciled in the Kingdom with a valid residency permit (Iqama) (excluding GCC nationals) Qualified Foreign Institutional investors registered with the CMA in accordance with the QFI Rules, to invest in shares listed on the Saudi Stock Exchange Foreign resident investment account in which the manager (Authorized Person) makes the buy/sell decisions for its client without referring to the account owner (based on to the agreed terms between them) Foreign investors considered founders and partners of Saudi listed companies Disclosures Please refer to the important disclosures at the back of this report. 8

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Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document. This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction. Explanation of Al Rajhi Capital s rating system Al Rajhi Capital uses a three-tier rating system based on absolute upside or downside potential for all stocks under its coverage except financial stocks and those few other companies not compliant with Islamic Shariah law: "Overweight": Our target price is more than 10% above the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Neutral": We expect the share price to settle at a level between 10% below the current share price and 10% above the current share price on a 12 month time horizon. "Underweight": Our target price is more than 10% below the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Target price": We estimate target value per share for every stock we cover. This is normally based on widely accepted methods appropriate to the stock or sector under consideration, e.g. DCF (discounted cash flow) or SoTP (sum of the parts) analysis. Please note that the achievement of any price target may be impeded by general market and economic trends and other external factors, or if a company s profits or operating performance exceed or fall short of our expectations. Contact us Mazen AlSudairi Head of Research Tel : alsudairim@alrajhi-capital.com Al Rajhi Capital Research Department Head Office, King Fahad Road P.O. Box 5561, Riyadh Kingdom of research@alrajhi-capital.com Al Rajhi Capital is licensed by the n Capital Market Authority, License No /37. Disclosures Please refer to the important disclosures at the back of this report. 10