AUSTRALIA OZL AU Price (at 6:24, 21 Apr 216 GMT) Underperform A$5.62 Valuation A$ - DCF (WACC 1%, beta 1.4, ERP 5.%, RFR 3.8%) 4.61 12-month target A$ 4.6 12-month TSR % -15.5 Volatility Index High GICS sector Materials Market cap A$m 1,76 3-day avg turnover A$m 1.4 Number shares on issue m 33.5 Investment fundamentals Year end 31 Dec 215A 216E 217E 218E Revenue m 879.4 96.8 1,3.3 789.6 EBIT m 186.8 122.7 227.1 3.1 Reported profit m 13.2 97.8 175.3 3.7 Adjusted profit m 13.2 97.8 175.3 3.7 Gross cashflow m 454.8 434.2 489.9 314.3 CFPS 149.9 141.8 16 12.7 CFPS growth % 19.2-5.4 12.8-35.8 PGCFPS x 3.7 4. 3.5 5.5 PGCFPS rel x.38.39.42.7 EPS adj 42.9 32. 57.3 1 EPS adj growth % 329.7-25.5 79.2-82.5 PER adj x 13.1 17.6 9.8 56.1 PER rel x.73 1.1.7 4.61 Total DPS 2 17. 21. 5. Total div yield % 3.6 3. 3.7.9 Franking % 1 ROA % 7.5 4.7 8.3 1.1 ROE % 5.7 4.1 7.2 1.2 EV/EBITDA x 2.3 2.5 2.1 3.7 Net debt/equity % -23.6-27.7-26.3-17.9 P/BV x.7.7.7.7 OZL 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, April 216 (all figures in AUD unless noted) 21 April 216 Macquarie Securities (Australia) Limited Solid start to the year Event OZL s 1QCY16 production result was solid. Copper production was 3% higher than we had expected while C1 cash cost was 14% lower. Cash flow generation was in line with net cash of A$533m at the end of the quarter due to lower shipments compared to production. Impact Solid production result: OZL s 1QCY16 production result was solid. Copper in concentrate production of 31.kt was 3% higher than we had expected while gold in concentrate of 27.6koz was 13% lower than forecast. The production beat was largely attributable to higher average copper grades milled. Shipments were lower than production: Concentrate shipments for the quarter totalled 48.5kt containing 23.3kt of copper and 23.koz of gold. Contained copper and gold shipments were 25% and 16% lower than production respectively. OZL noted that a 1kt concentrate shipment worth ~A$4m was completed in early April. Cash costs lower than forecast: Group C1 cash cost for the quarter of US$.75/lb was 14% lower than we had forecast. The cash cost beat was impressive, given by-product output was lower than we had forecast Carrapateena update in May: The scoping study results for Carrapateena were released in February with the project now expected to be a smaller scale 2.8mtpa sub-level cave with a capital cost of A$77m. The optimised scope of work for the prefeasibility study is expected to be released in May. Earnings and target price revision We have made modest changes to our earnings forecasts after incorporating the 1QCY16 production result. Our CY16 estimate remains largely unchanged while we lift our CY17 forecast by 5%. Our price target rises 7% to A$4.6 after rolling forward our valuation. Price catalyst 12-month price target: A$4.6 based on a DCF methodology. Catalyst: The release of the scope for the Carrapateena pre-feasibility study in May presents the next major catalyst for OZL. Action and recommendation Maintain Underperform: OZL s 1QCY16 production result was solid, with production slightly better than expected and cash costs lower. Cash generation should have been better than we had expected given the lower cash costs, however weaker shipments subdued the cash flow result. Prominent Hill looks on track to meet guidance this year, with announcements on the progress and commitment to Carrapateena key catalysts for the stock. Our Underperform rating on OZL reflect concerns over the potential returns that Carrapateena can deliver on our copper price outlook. Please refer to page 6 for important disclosures and analyst certification, or on our website www.macquarie.com/research/disclosures.
1QCY16 production result OZL s 1QCY16 production result was solid. Copper production was 3% higher than we had expected while C1 cash costs were 14% lower. Cash flow generation was in line with net cash of A$533m at the end of the quarter due to lower shipments compared to production. Fig 1 Solid production result and cash cost beat Quarterly result Macq Actual Variance Copper (kt) 3 31. 3% Gold (koz) 31.6 27.6 (13%) C1 Cash costs (US$/lb).87.75 (14%) Cash (A$m) 531 533 % Total material movements for the quarter were well ahead of our forecasts, with waste mined and ore mined 32% and 21% higher than we had forecast, respectively. Lower underground ore partially offset the strong performance from the open pit. Mill throughput was slightly lower than we had expected, which combined with lower grades drove the weaker gold production, while the slight beat in copper production reflected higher milled grades offsetting the lower throughput. Fig 2 Cost performance was impressive, given higher material movements Mining Macq Actual Variance Waste Moved (kt) 4,469 5,915 32% Open Pit Ore Mined (kt) 3,724 4,511 21% Underground Ore Mined (kt) 575 498 (13%) Ore Milled (kt) 2,625 2,534 (3%) Copper grade (%) 1.3% 1.4% 8% Gold grade (g/t).5.46 (8%) Copper concentrate produced (kt) 61.9 6.9 (2%) Copper concentrate sold (kt) 61.9 48.5 (22%) Cash costs Macq Actual Variance C1 cash costs.87.75 (14%) C2 cash costs 1.2.91 (11%) C3 cash costs 1.85 1.51 (18%) Modest uplift in earnings forecasts We have made modest changes to our earnings forecasts after incorporating the 1QCY16 production result. Our CY16 estimate remains largely unchanged while we lift our CY17 forecast by 5%. Our price target rises 7% to A$4.6 after rolling forward our valuation. Fig 3 Modest changes to earnings over next two years Y/E December CY16e CY17e CY18e CY19e Price Target Net profit (A$m) - old 98 167 17 (9) 4.3 Net profit (A$m) - new 98 175 31 4.6 Change % 5% 78% nm 7% 21 April 216 2
Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 Apr 18 Aug 18 Dec 18 Apr 19 Aug 19 Dec 19 Apr 2 Aug 2 Dec 2 Apr 21 Aug 21 Dec 21 Apr 22 Aug 22 Dec 22 Macquarie Wealth Management Fig 4 Prominent Hill production forecasts Fig 5 Carrapateena production forecasts Copper (kt) Gold (koz) Copper (kt) Gold (koz) 3 Cash costs (US$/lb) All in CC (US$/lb) 6. 7 Cash costs (US$/lb) All in CC (US$/lb) 2.5 25 2 4. 2. 6 5 2. 15 1 5-2. -4. -6. 4 3 2 1 1.5 1..5-8. Fig 6 OZL cash build vs market cap Fig 7 OZL cash balance comparison 1,8 1,6 1,4 1,2 Net cash / (debt) (A$m) - Macq Market Cap (A$m) 8 7 6 Net cash / (debt) (A$m) - Macq Net cash / (debt) (A$m) - @ Spot 1, 5 8 4 6 3 4 2 2 1 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 2 Jun 2 Sep 2 Dec 2 Fig 8 OZL improving earnings Fig 9 OZL NPV breakdown 7 Ebitda (A$m) Underlying profit (A$m) 6 5 4 Cash 24% 3 2 1 (1) Other 6% Carrapateena 6% Prominent Hill 64% 21 April 216 3
Fig 1 OZL summary financials OZ Minerals ASX: OZL Price: (A$ps) 5.62 Year end: Dec Rating: Underperform Up/dn TSR Mkt cap: (A$m) 1,76 Diluted shares (m) 33.5 Target: 4.6-18% -15% ASSUMPTIONS CY13 CY14 CY15 CY16e CY17e CY18e CY19e ATTRIBUTABLE MINE OUTPUT CY13 CY14 CY15 CY16e CY17e CY18e CY19e Exchange Rate A$/US$.97.9.75.71.66.66.72 Copper Production (kt) Copper (US$/lb) 3.32 3.11 2.5 2.26 2.39 2.15 2.12 Prominent Hill kt 73.4 92.6 13.3 121.1 11.9 83.2 67. Gold (US$/oz) 1,411 1,266 1,16 1,196 1,251 1,313 1,376 Carrapateena kt 2.6 Total copper production kt 73.4 92.6 13.3 121.1 11.9 83.2 87.6 RATIO ANALYSIS CY13 CY14 CY15 CY16e CY17e CY18e CY19e Gold Production (koz) Diluted share capital m 33.3 33.5 33.4 36.2 36.2 36.2 36.2 Prominent Hill koz 128. 148.2 113. 122.5 132.9 145.6 158.2 EPS (diluted and pre sig. items) A -2.6 1 42.9 32. 57.3 1.1 Carrapateena koz 21.7 P/E x -27.3x 56.3x 13.1x 17.6x 9.8x 56.1x 125.8x Total gold production koz 128. 148.2 113. 122.5 132.9 145.6 18 CFPS A 59. 73. 156.9 146.4 161.9 94.8 71.4 Cash costs (US$/lb) P/CF x 9.5x 7.7x 3.6x 3.8x 3.5x 5.9x 7.9x Prominent Hill (US$/lb) 1.79.91.7.74.64.7.82 DPS A 2 1 2 17. 21. 5. 2. Carapateena (US$/lb).78 Dividend yield % 3.6% 1.8% 3.6% 3.% 3.7%.9%.4% Average cash costs (US$/lb) 1.79.91.7.74.64.7.81 Franking Level % % % % % % 1% 1% AISC (US$/lb) Book value per share x 7.67 7.41 7.72 7.76 8.19 8.9 8.8 Prominent Hill (US$/lb) 4.38 2.57 1.48 1.54 1.28 1.39 1.72 P/Book value x.7x.8x.7x.7x.7x.7x.7x Carrapateena (US$/lb) 3.81 R.O.E. (pre sig items) % -13% 2% 6% 4% 7% 1% % Average AISC (US$/lb) 4.38 2.57 1.48 1.54 1.28 1.39 2.21 R.O.A. (pre sig items) % -4% 2% 7% 5% 8% 1% % Interest Cover x 14.7x -12.5x -64.4x -1.9x -17.4x -2.5x 1.x OPERATIONAL OUTLOOK EBITDA per share A$ps.38 1.12 1.56 1.43 1.7.96.75 EV/EBITDA x 11.6x 4.4x 2.4x 2.4x 2.x 4.3x 6.x 14 (kt) Prominent Hill Carrapateena Cash costs (US$/lb) 2. 1.8 12 EARNINGS CY13 CY14 CY15 CY16e CY17e CY18e CY19e 1.6 Sales Revenue A$m 644 831 879 97 1,3 79 779 Other Revenue A$m 2 1 1.4 Total Revenue A$m 646 831 879 97 1,3 79 779 8 1.2 Operating Costs A$m (46) (395) (314) (42) (433) (446) (497) 1. Operational EBITDA A$m 24 436 566 487 571 343 281 6 Exploration Expense/Write-offs A$m (75) (55) (4) (2) (21) (21) (22).8 Corporate & Other Costs A$m (49) (4) (54) (28) (29) (3) (3) 4.6 EBITDA A$m 116 341 472 439 521 293 229.4 D&A A$m (219) (296) (285) (316) (294) (263) (236) 2 EBIT A$m (13) 45 187 123 227 3 (7).2 Net Interest A$m 7 4 3 11 13 12 7 Significant Items A$m (232) 18 Profit Before Tax A$m (328) 67 19 134 24 42 Tax Expense A$m 33 (18) (6) (36) (65) (11) () RESERVES AND RESOURCES Minorities A$m Copper Reported NPAT A$m (294) 48 13 98 175 31 Reserves Mt Cu (%) kt Significant Items A$m (232) 18 Prominent Hill 14..21% 3 Adjusted NPAT A$m (63) 3 13 98 175 31 Carrapateena 27.93% 2,5 Total 284..89% 2,53 CASHFLOW CY13 CY14 CY15 CY16e CY17e CY18e CY19e Copper Net Profit A$m (63) 3 13 98 175 31 Resources Mt Cu (%) kt Interest/Tax/D&A A$m 194 315 347 352 323 29 225 Prominent Hill 18 1.% 1,799 Working Capital/other A$m 48 (123) (1) (2) (2) 51 (6) Carrapateena 1,2..74% 7,4 Net Operating Cashflow A$m 179 222 476 448 496 29 219 Total 1,182..78% 9,199 Capex A$m (391) (326) (251) (291) (463) (438) (329) Gold Investments A$m 3 127 Reserves Mt Au (g/t) koz Sale of PPE and Other A$m 15 1 Prominent Hill 14..51 23 Free cash flow A$m (21) (89) 352 157 33 (148) (11) Carrapateena 27.4 3,5 Dividends Paid A$m (91) (61) (18) (67) (42) (61) (3) Total 284..41 3,73 Debt A$m Gold Equity Issuance A$m () (3) Resources Mt Au (g/t) koz Other A$m 6 4 3 15 12 (8) (12) Prominent Hill 18.67 3,9 Net Financing Cashflow A$m (85) (57) (18) (52) (3) (69) (15) Carrapateena 1,2..29 9,3 Net change in cash A$m (295) (146) 334 15 3 (217) (125) Total 1,182..35 13,2 BALANCE SHEET CY13 CY14 CY15 CY16e CY17e CY18e CY19e EQUITY DCF VALUATION Cash A$m 364 219 553 657 66 443 318 Projects A$m A$ps PP&E & Mine Development A$m 1,35 1,332 1,262 1,237 1,45 1,581 1,674 Prominent Hill 893 2.94 Other A$m 848 858 752 752 788 64 774 Prominent Hill Resources 52.17 Total Assets A$m 2,517 2,49 2,566 2,647 2,853 2,664 2,766 Carrapateena 83.28 Debt A$m Carrapateena Resources Total Liabilities A$m 189 16 223 272 345 186 291 Listed investments 3.1 Total Net Assets / Equity A$m 2,328 2,249 2,344 2,375 2,58 2,478 2,475 Exploration Net Debt / (Cash) A$m (364) (219) (553) (657) (66) (443) (318) Corporate (193) (.64) Gearing (net debt/(nd + equity)) % (19%) (11%) (31%) (38%) (36%) (22%) (15%) Net cash (debt) 533 1.76 Gearing (net debt/equity) % (16%) (1%) (24%) (28%) (26%) (18%) (13%) Net Equity Value (@ 1% WACC) 1,399 4.61 Price Target (1x NPV) 4.6 21 April 216 4
Fundamentals Macquarie Wealth Management Macquarie Quant View The quant model currently holds a reasonably positive view on Oz Minerals. The strongest style exposure is Price Momentum, indicating this stock has had strong medium to long term returns which often persist into the future. The weakest style exposure is Profitability, indicating this stock is not efficiently converting investments to earnings; proxied by ratios like ROE or ROA. 191/168 Global rank in Materials % of BUY recommendations 25% (5/2) Number of Price Target downgrades 8 Number of Price Target upgrades 4 Attractive Quant Local market rank Global sector rank Displays where the company s ranked based on the fundamental consensus Price Target and Macquarie s Quantitative Alpha model. Two rankings: Local market (Australia & NZ) and Global sector (Materials) Macquarie Alpha Model ranking A list of comparable companies and their Macquarie Alpha model score (higher is better). Factors driving the Alpha Model For the comparable firms this chart shows the key underlying styles and their contribution to the current overall Alpha score..4.7.2 -.1 -.4 -.5-3. -2. -1. 1. 2. 3. -1% -8% -6% -4% -2% % 2% 4% 6% 8% 1% Valuations Growth Profitability Earnings Momentum Price Momentum Quality Macquarie Earnings Sentiment Indicator The Macquarie Sentiment Indicator is an enhanced earnings revisions signal that favours analysts who have more timely and higher conviction revisions. Current score shown below. Drivers of Stock Return Breakdown of 1 year total return (local currency) into returns from dividends, changes in forward earnings estimates and the resulting change in earnings multiple. -.1 -.2 -.2 -.1 -.5-3. -2. -1. 1. 2. 3. -9% -4% 1% 6% Dividend Return Multiple Return Earnings Outlook 1Yr Total Return What drove this Company in the last 5 years Which factor score has had the greatest correlation with the company s returns over the last 5 years. Price to Cash FY1 Price to Book FY1 Price to Book LTM Price to Book NTM Earnings Certainty Earnings Certainty (NTM) Merton Score Turnover(USD) 125 Day Negatives Positives -25% -27% -28% -28% 37% 35% 35% 34% -4% -2% % 2% 4% How it looks on the Alpha model A more granular view of the underlying style scores that drive the alpha (higher is better) and the percentile rank relative to the sector and market. Alpha Model Score Valuation Growth Profitability Earnings Momentum Price Momentum Quality Capital & Funding Liquidity Risk Technicals & Trading Normalized Score.74.21 -.36 -.55.29.74 -.35.12 -.81 -.38.18 Percentile relative to sector(/168) Percentile relative to market(/399) 5 1 5 1 1 1 Source (all charts): FactSet, Thomson Reuters, and Macquarie Research. For more details on the Macquarie Alpha model or for more customised analysis and screens, please contact the Macquarie Global Quantitative/Custom Products Group (cpg@macquarie.com) 21 April 216 5
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 >+1% Neutral expected return from -1% to +1% Underperform expected return <-1% Macquarie South Africa Outperform expected return >+1% Neutral expected return from -1% to +1% Underperform expected return <-1% 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 3 index return Neutral (Hold) return within 5% of Russell 3 index return Underperform (Sell) return >5% below Russell 3 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 6 1% in a year investors should be aware this stock is highly speculative. High stock should be expected to move up or down at least 4 6% in a year investors should be aware this stock could be speculative. Medium stock should be expected to move up or down at least 3 4% in a year. Low medium stock should be expected to move up or down at least 25 3% in a year. Low stock should be expected to move up or down at least 15 25% in a year. * Applicable to Asia/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 31 March 216 AU/NZ Asia RSA USA CA EUR Outperform 5.34% 59.9% 46.67% 44.76% 6.66% 46.12% (for global coverage by Macquarie, 3.72% of stocks followed are investment banking clients) Neutral 34.14% 25.66% 32.% 49.9% 3.33% 35.1% (for global coverage by Macquarie, 4.79% of stocks followed are investment banking clients) Underperform 15.52% 15.26% 21.33% 5.33% 9.2% 18.78% (for global coverage by Macquarie, 2.31% of stocks followed are investment banking clients) OZL AU vs Small Ordinaries, & rec history (all figures in AUD currency unless noted) 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, April 216 12-month target price methodology OZL AU: A$4.6 based on a DCF methodology Company-specific disclosures: OZL AU: Macquarie and its affiliates collectively and beneficially own or control 1% or more of any class of Limited's equity securities. MACQUARIE CAPITAL (AUSTRALIA) LIMITED or one of its affiliates managed or co-managed a public offering of securities of OZ Minerals Ltd in the past 24 months, for which it received compensation. Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/research/disclosures. Date Stock Code (BBG code) Recommendation Target Price 19-Apr-216 OZL AU Underperform A$4.3 15-Mar-216 OZL AU Underperform A$4.5 26-Feb-216 OZL AU Neutral A$4.8 1-Feb-216 OZL AU Neutral A$4.6 21-Jan-216 OZL AU Neutral A$4.3 14-Dec-215 OZL AU Underperform A$4. 23-Oct-215 OZL AU Outperform A$6. 6-Oct-215 OZL AU Outperform A$5.5 24-Sep-215 OZL AU Outperform A$4.6 24-Jul-215 OZL AU Outperform A$4.3 16-Jul-215 OZL AU Outperform A$4.4 13-May-215 OZL AU Outperform A$5.1 2-Mar-215 OZL AU Outperform A$5.3 11-Feb-215 OZL AU Neutral A$4.3 28-Jan-215 OZL AU Outperform A$4.9 15-Jan-215 OZL AU Outperform A$4.1 14-Oct-214 OZL AU Neutral A$4. 3-Jun-214 OZL AU Underperform A$3.8 16-May-214 OZL AU Outperform A$4.4 21 April 216 6
16-Jan-214 OZL AU Outperform A$4.5 11-Dec-213 OZL AU Underperform A$3. 15-Aug-213 OZL AU Underperform A$4. 25-Apr-213 OZL AU Neutral A$5. Target price risk disclosures: OZL AU: Any inability to compete successfully in their markets may harm the business. This could be a result of many factors which may include geographic mix and introduction of improved products or service offerings by competitors. The results of operations may be materially affected by global economic conditions generally, including conditions in financial markets. The company is exposed to market risks, such as changes in interest rates, foreign exchange rates and input prices. From time to time, the company will enter into transactions, including transactions in derivative instruments, to manage certain of these exposures. Analyst certification: We hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. The Analysts responsible for preparing this report receive compensation from Macquarie that is based upon various factors including Macquarie Group Limited (MGL) total revenues, a portion of which are generated by Macquarie Group s Investment Banking activities. General disclosure: This research has been issued by Macquarie Securities (Australia) Limited ABN 58 2 832 126, AFSL 238947, a Participant of the ASX and Chi-X Australia Pty Limited. This research is distributed in Australia by Macquarie Wealth Management, a division of Macquarie Equities Limited ABN 41 2 574 923 AFSL 23754 ("MEL"), a Participant of the ASX, and in New Zealand by Macquarie Equities New Zealand Limited ( MENZ ) an NZX Firm. Macquarie Private Wealth s services in New Zealand are provided by MENZ. Macquarie Bank Limited (ABN 46 8 583 542, AFSL No. 23752) ( MBL ) is a company incorporated in Australia and authorised under the Banking Act 1959 (Australia) to conduct banking business in Australia. None of MBL, MGL or MENZ is registered as a bank in New Zealand by the Reserve Bank of New Zealand under the Reserve Bank of New Zealand Act 1989. Apart from Macquarie Bank Limited ABN 46 8 583 542 (MBL), any MGL subsidiary noted in this research,, is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Australia) and that subsidiary s obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that subsidiary, unless noted otherwise. This research contains general advice and does not take account of your objectives, financial situation or needs. 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This research is based on information obtained from sources believed to be reliable, but the Macquarie Group does 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. The Macquarie Group accepts no 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. The Macquarie Group produces a variety of research products, recommendations contained in one type of research product may differ from recommendations contained in other types of research. The Macquarie Group has established and implemented a conflicts policy at group level, which may be revised and updated from time to time, pursuant to regulatory requirements; which sets out how we must seek to identify and manage all material conflicts of interest. The Macquarie Group, its officers and employees may have conflicting roles in the financial products referred to in this research and, as such, may effect transactions which are not consistent with the recommendations (if any) in this research. The Macquarie Group may receive fees, brokerage or commissions for acting in those capacities and the reader should assume that this is the case. The Macquarie Group s employees or officers may provide oral or written opinions to its clients which are contrary to the opinions expressed in this research. Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/disclosures Macquarie Group 21 April 216 7