edita food industries reports 2q2015 earnings · cairo, egypt | 13 august 2015 1 2q2015 earnings...

2Q2015 Earnings rElEasECairo, Egypt | 13 August 2015

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Edita Food industries reports 2Q2015 EarningsA challenging quarter for Edita, but nevertheless healthy earnings in 2Q2015, with growth in revenues backed by the achievement of marked milestones in Edita’s expansion plan, which continues to support its growing institutional shareholder base.

Highlights for 2Q2015

Revenues EGP 514.8 mn▲13.1% y-o-y

Gross Profit EGP 193.7 mn▲11.6% y-o-y

EBITDAEGP 117.7 mn▼4.4% y-o-y

Net Profit after Tax EGP 66.9 mn▼0.1% y-o-y

The discussion and analysis in this report are based on the IFRS statements. For comparison of the results to Egyptian Accounting Standards, please refer to the section “Egyptian Accounting Standards Reconciliation to IFRS”.

2Q2015 at a Glance

• 2Q2015 revenues of EGP 514.8 million, up 13.1% y-o-y. 1H2015 revenues of EGP 1.04 billion, up 15.2% over 1H2014.

• GrossprofitofEGP193.7million,an11.6%increaseover2Q2014withagrossprofitmarginof37.6%,slightlydownfrom38.1%in2Q2014.

• RobustEBITDAmarginof22.9%,butdownfrom27.1%y-o-yduethecom-missioningofthenewlines,increasedmaintenanceexpensesandnetIPOcostsexpensed.

• NOPATofEGP66.9millionin2Q2015,flaty-o-y.• AsofAugust2,2015,Edita’ssharehasbeenaddedtothebenchmarkindexof

theEgyptianStockExchange,theEGX30.

• 2015isaplatformyearforEdita,withincreasedinvestmentsthataresettingthestageforfuturegrowth.Thelatestdevelopmentsinclude:▪SigningoftwocontractswithHostessBrandsLLC▪Additionofnewcapacitiesof32,000tons/annum▪OnAugust12,2015,Editalaunchedanewandmorepremiumvarianttoits

croissantsegment,MoltoMix1

1 MoltoMixisbeingofferedintwovariations,namelycream&chocolatefillingandcream&strawberryfilling.

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Results in a Nutshell

EditaFoodIndustriesS.A.E.(EFID.CAontheEgyptianExchange&EFIDq.LontheLondonStockExchange),aleaderintheEgyptianpackagedsnackfoodmarketwithnumber-onemarketsharesinitscorecakeandcroissantsegments,announcesitsresultsforthesecondquarterof2015,reportinganetprofitaftertaxofEGP66.9milliononRevenuesofEGP514.8million,anincreaseof13.1%y-o-y.Revenuesfor1H2015cameinatEGP1.04billion,up15.2%over1H2014.

Snapshot of Results (EGP million)

Revenuegrowthduring2Q2015remainedhealthydespitethefactthatproductionfromnewcapacitieshadn’tyetbeenreflectedonrevenues–newlineswerestillintheramp-upphaseduring2Q2015–andthatthe21existinglineswerealreadyoperatingatfullcapacity.Furthermore,Edita,likeallothersnackfoodproducers,witnessedaseasonalityeffectwiththemonthofRamadanandtheschoolyearexaminationperiodtypicallybeinglowpointsindemand.Thissawtwomonthsofthequarterrecordinglowerthanusualrevenuesfollowedbyastrongpickupindemand.Itisalsoworthytonotethatrevenuegrowthwasimpactedbyafive-dayproductionstoppageattheE07factoryonthebackofthemunicipality’smaintenanceworksforthemainwater-supplygrid.Inaddition,constructionmodificationstotheE07(HallBnewextension)toensureproductsafetyresultedina10-daystoppage,alsoleadingtodecreasedproductionquantities.

Meanwhile,grossprofitrecordedEGP193.7millionin2Q2015,an11.6%y-o-yincreasewithgrossprofitmarginstandingat37.6%comparedto38.1%in2Q2014.Theslightde-creaseingrossprofitmarginisconsideredminimalgiventhefactthatnewproductionlinesincurredincreasedwasteandramp-upcoststhataretypicallyassociatedwithproducttrialsfollowingtheintroductionofnewcapacities,leadingtohighermanufacturingoverheads;thesecostsareexpectedtonormalizeoncetheramp-upphaseiscomplete.During1H2015,Editaalsoaddedtwodistributioncenterswhichentailedanincreaseinboththedistri-butionvansandthesalesforce.Thecompanyisplanningtoaddthreemorecentersin3Q2015.

Inaddition,2Q2015sawEditaexpenseseveralone-offchargesrelatedtothenetcostofthecompany’sIPOaswellasincreasedmarketingcostsrelatedtothecorporatecam-paignaimedatbolsteringEdita’scorporateimage.Thesecosts,albeitonaone-offbasis,sawEBITDAinchdown4.4%y-o-yin2Q2015toEGP117.7million,withEBITDA

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marginat22.9%comparedto2Q2014marginof27.1%.Nevertheless,Edita’sresultsstillreflectedgrowthin2Q2015,withallmarginsstillnotfarofffromtheirhistoricalaverage,attestingtoEdita’sstrongmarketpositioningandefficientoperationalmodel,ascanbeseenfromthedetailedexplanationoftheresultsbelow.

A Platform for Future Growth

Theyear2015isaplatformyearforEditawherebynewcontractsandinvestmentsinincreasingcapacitywillserveasalaunchpadforthecompanygoingforwardandensurehighergrowthlevels.Themostnotableofthesedevelopmentsincludethesign-ingoftwocontractswithHostessBrandsLLCrelatingtotheextensionofterritoryfortheHTTbrandstoinclude12additionalcountriesacrosstheMENAregionandtheacquisitionofknow-howandtechnicalassistanceto11additionalproductsfromHostessBrandsLLCacrosstheexpandedregion(notallproductsarecakebased).

Furthermore,Editaaddednewcapacitiesof32,000tonsin1H2015inadditiontotheexist-ing2014capacityof101,100tons/annum.ThelatestadditionwasacroissantlinededicatedtotheproductionofMoltoXLandXXLthatcameintooperationonApril22,2015,adding17,200ofthe32,000tons/annum,anditisstillintheramp-upphase.Inaddition,onAugust12,2015,Editalaunchedanewandmorepremiumvarianttoitscroissantsegment,MoltoMix,adouble-filledcroissant,bringingthenumberofSKUsto71.

EditaalsosecuredthelandthatwillhouseitsnewE08factoryforatotalconsiderationofEGP55million,pavingthewayforthecompany’snewgrowthphase.The55,000squaremeterplotlocatedattheZamilPolarisIndustrialComplexinSixthofOctoberCityisincloseproximitytotheE07factory.Thenewfacility’sdesignprocesshasalreadybegun,withconstructionsetforOctober2015.CommencementofoperationsoftheE08factory’sproductionlinesisscheduledfor4Q2016.

Edita’snewBakeRolzandStrudellinesarealsoscheduledforcommissioningbyDecember2015and1Q2016,respectively.Whiletheselineswereoriginallyplannedtostartoperationduring4Q2015,Editawasnotifiedbythesuppliersin2Q2015ofdelaysintheirdelivery.

Material Events Post 2Q2015

Followingtheendof2Q2015,Editawitnessedseveralmilestonebusinessandcorporatedevelopments.Ontheproductfront,Editahasexpandeditscroissantproductrangetoincludeadouble-filledcroissant,theMoltoMix,thatwilllaunchonAugust12.Thetwovariants,strawberry&creamandchocolate&cream,arepricedathigherpointsthanEdita’saveragecroissantsellingprice.

EditaalsosawcorporatedevelopmentswhereonJuly28,2015,Edita’sBoardofDirec-torsresolvedtoparticipateinECI’scapitalincreasebycapitalizingitsloanstoECI.Thecapitalincrease,inwhichtheminorityshareholderisinjectingcapital,willbedirectedatexpandingthecapacityofhardcandyattheECIlevelthroughtheadditionofamoresophisticatedmulti-productproductionline.Lastbutnotleast,Edita’ssharehasbeenaddedtotheEgyptianStockExchange’smainindex,theEGX30,asofAugust2,2015.

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An Overview of Edita’s Performance During 2Q2015

RevenuesItwasachallengingquarter;nevertheless,revenuesincreased13.1%over2Q2014levelstoEGP514.8million,upfromEGP455.2million.Revenues,especiallyforourcroissantsegment,weremostlyimpactedbysupplyfactorsonEdita’sproductionsideaswellasaseasonallowinmarketdemandacrossallproductsegments.DemandwasrelativelysubduedthisquarterduetoRamadanandtheschool-yearexaminationperiodcoinciding;thisaffectedconsumptionwithinallFMCGs,particularlysnackfoodrelatedcompanies.Inaddition,anticipatedpricehikesofcigarettesandcookingoilatthebe-ginningof2Q2015sawwholesalersoverstockandhoardbothproductstolockinextraprofits,effectivelychannellingfundsawayfromotherfooditems.

Revenue Progression (in EGP million)

Ontheproductionside,EditaexperiencedfivedaysofproductionstoppageinE07factoryduring2Q2015onthebackofwatersupplycutsacrossalargepartofSixthofOctoberindustrialzoneduetothegovernment’smaintenanceworksonthemainwatersupplygrid;thestoppageresultedinanestimatedEGP30millioninlostsales.Inaddi-tion,theE07extension(HallB)factoryalsowitnessedapproximately10daysofstop-pagetimeduetoteethingissuesrelatedtoboththenewlinecommissionedin2Q2015andthestructurehousingthethreenewlinesasaresultofseveralseveresandstormsduringthequarter.ThetotalimpactoflostproductionisestimatedaroundEGP20mil-lioninsales.

TheproductionstoppagesledEditatopostponethelaunchofseveralSKUsinclud-ingthenewMoltoMixproductthatwaslaterlaunchedonAugust9,2015.Tocounterthelossofproductionandconsequentlostsales,EditaplanstooperateduringFridaysin2H2015andhasreworkeditsproductionplanningscheduletominimizedowntimeresultingfromthechangeoverfromonevariantofaproducttoanother.

Despitetheabove,2Q2015witnessedhealthygrowthinrevenuesof13.1%over2Q2104levels.Editaalsomaintainedoperationalefficienciesanditsexpansionplaniswellontrack,whetherfortheramp-upofnewlinesorthecommencementofproduc-tion.

Segment Contributionto Revenue 2Q2015

Segment Contributionto Revenue 2Q2014

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Onahalf-yearbasis,1H2015revenuesgrew15.2%y-o-ytoEGP1.043billion.Edita’stotalproductionfor1H2015reached55,000tons(1.65billionpacks)comparedto48,200tonsin1H2014(1.47billionpacks).Thetablebelowshowstheprogressionofblendedfactorypricesforallproductsegments:

Average Factory Prices

EGP 1H2014 1H2015 % ChangeCakes 0.51 0.53 3.2%Croissants 0.86 0.86 -Rusks 0.80 0.81 0.7%Wafers 0.74 0.74 -Candy 0.88 1.11 26.3%Average Edita 0.61 0.63 2.8%

Itisworthnotingthatwiththecommencementoftheschoolyear,demandissettopickupduring2H2015asthismarksthehighseasonforthesnackfoodmarket.That,inad-ditiontotheramp-upofthethreenewlinesreachingcompletionandwiththelaunchofthenewMoltoMixSKUsatahigherpricepointthanEdita’saveragecroissantprices,issettohaveapositiveeffectonEdita’sfigures.

2Q2015 Revenue Growth by Segment (y-o-y)

In1H2015,allproductsegmentscontributedtothegrowth,albeitsomemorethanoth-ers.Revenuesfromcakesincreased10.4%over2Q2014levelstoreachEGP295.5mil-lionin2Q2015.Intermsofq-o-qgrowthrates,2Q2015sawlowergrowthinthecakesegmentcomparedtothepreviousquarter,owingtothefactthatthenewlineaddedattheendof1Q2015wasstillgoingthroughtheramp-upphasewhileexistinglinesduringthefirstquarteroftheyearwereoperatingattheircapacitylimits.

Thecakesegmentcontributed57.4%toEdita’srevenues,downfromto58.4%in1Q2015.Thekeydrivercontributingtothesegment’srevenuegrowthwastheincreasedutilizationonthebackofmoreeffectiveproductionplanningfortheexistinglinesthatminimizedchange-overtimes;overallutilizationrateonthecakelinesduring2Q2015stoodat93%,upfrom90%in2Q2014.Inaddition,productionandsalesofhigherpricedSKUsincreased,includingcertainvariationsofTodoandtheJumboHohos.TheaverageSKUconsumersellingpriceofcakesin2Q2015increased3.6%over2Q2014toEGP0.7.

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Croissantrevenuesgrewby10.4%over2Q2014levelstoreachEGP153.2million,largelydrivenbycapacityadditionsofthetwonewMoltolinescommissionedduring1H2015.Thecroissantsegmentcontributed29.8%toEdita’srevenues,upfrom28.3%in1Q2015,whichreflectstherampingupofthenewMoltolinethatstartedoperationsduringthefirstquarteroftheyear.Onay-o-ybasis,higherutilizationratesonthecrois-santlinesalsocontributedtothegrowthinrevenues.Utilizationratesincreasedto97%in2Q2015from94%in2Q2014.Inaddition,thegrowthincroissantsegmentrevenueswasafactorofbothvolumeandpriceincreases,wheretheaverageconsumersellingpriceperSKUgrewby5.2%toEGP1.16.

Salesofrusksincreased16.9%in2Q2015over2Q2014levelstoEGP22.1million,mainlyduetolineenhancementsthatincreasedproductioncapacities,withboththeBakeRolzandBakeStixlinesoperatingat99%utilizationratesduringthequarter.

Wafersalesincreased42.7%over2Q2014levelstoreachEGP22.8million,eventhoughthelineoperatedatonly87%utilization,asupplydecisiononEdita’spartwhichfactoredintheseasonalsofteningofdemandin2Q2015andwhichsupportsthecom-pany’spolicyofstoringfinishedproductsnomorethantwotothreedays.

Comingfromalowbase,revenuefromthecandysegmentgrewby60.1%over2Q2014levelstoreachEGP18.8million,operatingat97%utilizationrates.Itisworthnot-ingthatproductionvolumesintheE15factory,whereEditahasitscandyproduction,increasedby74%y-o-yasthecompany’srenewedlaunchoftheproductinthesecondhalfof2014begantostabilizeandtranslateintostrongersales.

Cost of Goods SoldIn2Q2015,totalCOGSincreased14%over2Q2014levelstoEGP321million,result-inginaCOGS-to-net-salesratioof62.4%,upfrom61.9%in2Q2014.ThegrowthinCOGSispartlyattributedtotheincreaseinmanufacturingoverheadsrelatedtothenewlinethatcameonstreamattheendofApril,whichhasnotyetreachedfullutiliza-tion.Also,therampingupofallthreenewlinescontributedtorawmaterialtrialcostsofEGP2.2million,anincreasewhichhasnotyetbeenmatchedbyariseinsales.Therampingupofallthenewlinesisontrackandaccordingtoplan,withthefirsttwolinescommissionedcurrentlyoperatingatnearfullcapacity.

Theincreaseinmanufacturingoverheadsalsoreflectsthehikeinenergypricesthatthegovernmentintroducedin2H2014aswellasincreasedmaintenancecostsincurredbythecompany.Inaddition,thecompanyincurredaone-offexpenserelatedtotravelandtrainingexpensesforthefive-memberteamfromtheR&DandIndustrialOperationsde-partmentwhotravelledtotheUnitedStatesforthehandoverandtrainingrelatedtothenewproductsacquiredfromHostess.

YTDEditamanagedtomaintainthecostsofallthedirectmaterialsusedasthecom-panywasabletosecureitsneedsandlockinfavorablepricesfortheyearandinsomecaseswellinto1Q2016.TheSupplyChaindepartmentmanagedtolockinfavorablepricesofrawmaterialssuchascocoaandpackagingmaterials,whosepriceshaveincreasedsubstantiallysincethebeginningoftheyear.2Thedepartmentalsomanaged

Imported vs. Local Direct Materials 2Q2015

Imported vs. Local Direct Materials 2Q2014

2 PleaserefertoSupplyChainsectionformoredetails.

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tosecureEdita’sneedsformilkpowderuntil1Q2016,takingadvantageofthecommod-ity’scurrentlowprices.Furthermore,Edita’sdiversifiedcoststructurecontinuestoactasanaturalhedgeagainstglobalcommoditypricemovements.

Gross Profit

Gross Profit Progression (EGP million)

In2Q2015,grossprofitincreased11.6%over2Q2014levelstoEGP193.7million,withgrossprofitmargininchingdownto37.6%from38.1%ayearearlier.Theslightsqueezeinmarginscomesonthebackofthetestingofthethreenewlinescommis-sionedinMarchandApril2015andtheassociatedincreaseinMOHandmaterialtestingcostswhichhavenotyetbeenreflectedinincreasedsalesastheseexpensesweremostlybookedduring2Q2015.Onahalf-yearbasis,GPMfor1H2015roseto38.0%from37.4%in1H2014,reflectingtheoverallincreasedutilizationcomparedtothesameperiodlastyearaswellasthelaunchofhighermarginSKUs.

Gross Profit Margin by Product Segment

Withregardstoprofitabilitypersegment,grossprofitmarginsin2Q2015increasedforrusks,wafersandcandyasnonewlineswereaddedtothesesegmentsduring2Q2015,andtheiroperationsreflectedthecontinuationofEdita’ssuccessfuleffortstostreamlineproductionandcontrolcostsacrosstheboard.Inthewafersegment,grossprofitmarginssawanimpressiveincreasefrom32.5%in2Q2014to46.4%in2Q2015,largelyonthebackoflineenhancementsandincreasedoperationalefficiencies.Thecandysegment’s

Contribution to Gross Profit by Product Segment 2Q2015

Contribution to Gross Profit by Product Segment 2Q2014

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grossprofitmarginsurgedto27.6%in2Q2015from12.6%in2Q2014,asthecompanyresolvedtechnicaldifficultiesinthesecondhalfof2014,leadingtoanimprovedcoststructure.

Marginsfromthecorecakeandcroissantsegments,wherenewlineswereadded,dippedslightly,withthecakesegment’sgrossprofitmargindecliningto38.5%in2Q2015from39.6%in2Q2014.Meanwhile,grossprofitmarginforthecroissantbusinessrecorded37.0%in2Q2015,downfrom39.9%in2Q2014.Thisvolatilityinmarginsistypicalinthecaseofnewlinesbeingaddedwhichhavenotyetcompletedtheramp-upphase.

OurcorecakeandcroissantproductsegmentsremainthemaincontributorstoEdita’sgrossprofit.In2Q2015,thecakeandcroissantsegmentsconstituted88%oftotalgrossprofit(and87.2%ofrevenue),whichisrelativelylowerthanthe93%recordedin2Q2014andcomespartlyonthebackofgrowthrecordedinEdita’sotherproductsegments.Therusk,waferandcandysegments’contributiontogrossprofitcontinuestoincrease,recording11.4%(12.4%ofrevenues)in2Q2015,upfrom6.5%in2Q2014.

Other ExpensesEdita’sthreemainexpensecategoriesrelatingtooperationsarenamely:sellinganddistributionexpenses(S&D),advertisingandmarketingexpenses(A&M)andgeneralandadministrativeexpenses(G&A).TotalSG&Ain2Q2015increased36%y-o-ytoEGP90.9million. S&Dexpensesincreased30.0%toEGP40.1million(7.8%ofrevenue)in2Q2015comparedtoEGP30.9million(6.8%ofrevenue)inthesameperiodlastyear.TheincreasereflectsEdita’sstrategytofosterandincreasesalesthroughvariousretailchannelsandincreaseitsgeographiccoverage.In2Q2015,Editamanagedtoexpanditsretailcustomerbaseto57.9thousandpointsofsale,upfrom52.2thousandin2Q2014.Inlinewiththecompany’sstrategytoexpanditsdistributionfootprint,Editaplanstoopenthreenewdistributioncentersin3Q2015inadditiontoitsexisting18.Expansionofthesalesforcetohandletheincreasedbusinesshasbeenexecutedefficiently,wherethenumberofdistributionvansincreasedby10%to539andthenumberofsalesforcepersonnelincreasedbyonly5%to996in2Q2015,reflectingthecompany’semployeeoptimizationprogramlaunchedin2H2014.Itisalsoworthytonotethattheincreasedenergypricesappliedin1H2014hadatwo-foldeffectonEdita’sS&Dexpensesowingtotheirdirecteffectonitsoperationsaswellastheincreasedfuelcostsforthecom-pany’slargerdistributionfleet.

A&Mexpensesincreased58%y-o-yin2Q2015toEGP18.3million(3.6%ofrevenue).A&Mexpensestosalesratiocontinuestofallwithinnormallevels,evenasthecompa-nylaunchedseveralproductadvertisingcampaignsandacorporateawarenesscampaignin 2Q2015.

G&Aexpensesclimbed34%y-o-yin2Q2015owingtotheone-offcostsassociatedwiththeIPO,inadditiontothenormal,periodicincreasesinwagesandsalaries.AdjustingforthetotalnetIPOexpensesofEGP2.2millionbookedduring2Q2015,adjustedG&A/netsaleswouldstandat5.9%in2Q2015comparedto5.3%inthesameperiodlastyear.

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Depreciation,otherthanthatrelatedtoindustrialoperations,wasEGP7.8millionin2Q2015andremainedapproximately1.5%ofrevenue.

During2Q2015,EditamanagedtorealizegainsonthesaleoffixedassetstotalingEGP7.7million,mainlyattributedtothesaleofthecompany’strailersasEditacontinuedtoimplementapolicyofoutsourcingnon-coreoperations.During2Q2015,Editamanagedtooutsourcethemovementoffinishedgoodsfromitsfactoriestoitsdistributioncentersandhencenolongerrequiredthetrailers.

Startingin2Q2015,Editabegantorecordanamortizationexpense–EGP314,300forthecurrentquarter–relatedtotheknow-howforthenewlyacquiredproductsfromHostessBrandsinApril2015valuedatUSD4million.AsperIFRSstandards,thisamountistobetreatedasanintangibleassetwithafinitelifetimeuntilanoperationalhistoryisaccumulated,atwhichthisamountwillbesubjecttoimpairmenttestssimilartothoseappliedfortrademarks.

Profitsfromoperationsdecreased1.8%toEGP101.6millioncomparedto2Q2014,withamarginof19.7%.ThedeclineismostlyattributabletothedecreasedgrossprofitmarginandtheincreaseinSG&Aexpenses,asdiscussedabove.

Interestexpensein2Q2015totaledEGP9.5million,upfromEGP6.3millionin2Q2014asthecompany’sdebtincreasedinlinewithEdita’sstrategytofinanceitsexpansionsequallythroughdebtanditsownresources.Loanswithdrawnsince2Q2014wereutilizedtofinancetheproductionlinescurrentlyhousedintheE07extension(HallB),whichbecameoperationalinMarchandAprilof2015.ThemostrecentlysignedfacilitywastheEGP90millionmedium-termloantofinancetheHostesscontractssignedin2Q2015.ItisworthnotingthatEditacontinuestoenjoyextremelyfavorabletermsfromitslendingbanks,whetherininterestrateschargedorrepaymentschedules.Ontheotherhand,interestincomeincreasedtoEGP6.3millionin2Q2015fromEGP5.6millionin2Q2014,mainlyowingtoamoreflexiblecash-managementpolicythathasallowedEditatocapitalizeonfavorableopportunitiesinthemarket.

2Q2015alsosawEditabookanFXlossofEGP4.4millionarisingfromtheEGP’sde-valuationagainsttheeuro(18piastersoverthequarter),whichaffectedthecompany’sliabilitiesdenominatedinthelatterwhichwererelatedtothenewproductionlines.TheEGPwasstableagainsttheUSDin2Q2015atanofficialrateofEGP7.63/USD(albeit6.7%downfromEGP7.15/USDinJanuary2015).

EBITDAEBITDAin2Q2015stoodatEGP117.8million,4.4%lowerthanthe2Q2014figureofEGP123.3million,andwithamarginof22.9%comparedto27.1%inthesameperiodlastyear.PressureontheEBITDAmarginwaspartlyduetohigherSG&Aexpensesaswellasstoppagesandteethingissuesassociatedwiththenewlinesthataffectedoverallsalesduringthequarter,aspreviouslyexplained.Adjustingfortheone-offnetIPOcosts,EBITDAmarginwouldstandat23.3%.ItisalsoworthnotingthatadheringtoIFRSreportingstandardssawatotalofEGP7.7millionexcludedfromtheEBITDAcalculation.

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Net Earnings

NOPAT Progression (EGP million)

Taxesexpensedfor2Q2015decreasedtoEGP27.1millionfromEGP35.2millionin2Q2014.Meanwhile,onahalf-yearbasis,taxesremainedinthevicinityofEGP60mil-lioninboth1H2015and1H2014,despite2Q2014witnessingataxrateof25%com-paredto30%in2Q2015.Thevariancecausedbythedifferentratesduringthequartercanbeseeninthedeferredtaxaccount.

Asaresultofalloftheabove,netprofitaftertaxandminorityinterestfor2Q2015remainedsomewhatflaty-o-yatEGP67million,withamarginof13.0%comparedto14.7%inthesameperiodlastyear.

Balance SheetEdita’stotalassetsincreasedtoEGP1.9billionin1H2015fromEGP1.6billionasatyear’send2014.Thebulkoftheincreaseemanatedfromtheincreaseinproperty,plantandequipmentastheextensionoftheE07plantmaterializedandthedeliveryofthethreenewlineswascompleted.Property,plantandequipmentincreasedtoEGP1.03billionin1H2015,upfromEGP818.4millionasatyear’send2014,whileprojectsun-derconstructiondecreasedtoEGP123.0millionfromEGP197.4millionin2014afterthecompletionofthenewextension.

ThemainCAPEXitemsin1H2015wereEGP57.4millionpertainingtothecompletionofHallB(extensionoftheE07factory).TotalCAPEXrelatedtotheacquisitionofthenewlandforthenewE08factoryamountedtoEGP54.9million,includingthecostofthelandplotandrelatedinfrastructure.TotalCAPEXfor1H2015reachedEGP172.2million,outofwhichEGP125.6millionisconsideredexpansionCAPEX.

EditacontinuedtomaintainhealthycashandcashequivalentsofEGP333.1millionasof1H2015,constituting17.8%ofthecompany’stotalassets.

Withregardstoworkingcapitalcomponents,inventorylevelscontinuedtoreflectEdi-ta’spolicyofmaintaininginventorycoverageforalldirectmaterials,withthecompanykeepingonemonth’sworthofsalesforlocallysourcedmaterialanduptothreemonthsforimportedmaterials,togetheraveraging0.89monthsduring2Q2015.Finishedgoodsinventoryremainedattheaverageofthreedaysin2Q2015.TradereceivablesdecreasedtoEGP9.9million(1.7days)in1H2015,reflectingEdita’scontinuedcashsalespolicy

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–over97%ofsalescontinuetobeconductedonacashbasis.TradepayablesincreasedslightlytoEGP153.4million,reflecting54daysofsalesasEditawasabletosecurebetterpaymenttermswithseveralofitskeysuppliers.

ThevalueofthenewHostesscontract,signedinApril2015,hasbeenincludedonthebalanceasanintangibleasset,withthetotalbalancereachingEGP162.5millionasattheendof1H2015,upfromEGP68.6millionasatyear’send2014.Itisworthnotingherethatthetwocomponentsofthecontract,namelytheexpansionofEdita’sterritoryrightforHTTbrands(valuedatEGP62.9million)andthetransferofknow-howfornewlyacquiredproducts(valuedatEGP31.4million),aresubjecttodifferenttreat-ments,withtheformerundergoingimpairmenttestswhilethelatterisamortizedbasedona25-yearlifetimeuntilaproductionhistoryisaccumulated.Oncethereisaproduc-tionhistory,thecontractrelatedtotheknow-howacquisitionwillbere-evaluatedandtheamountscouldalsobesubjecttoanimpairmenttest.

Thecurrentportionoflong-termliabilities(CPLTD)increasedtoEGP179.9millionasof1H2015fromEGP125.2millionasatyear’send2014.Meanwhile,long-termloansincreasedtoEGP268.9millionasof1H2015,comparedtoEGP204.5millionattheendof2014.Thiscomesonthebackofloansdrawndowntofinanceboththenewpro-ductionlinesandtheHostesscontractssignedduring2Q2015,whichsawEditaexpanditsHTTbrandsterritoryandacquireknow-howandtechnicalassistancefor11addition-alcakeproductsfromHostessBrandsLLCtobemarketedacrosstheexpandedregion.

Totalshareholders’equityincreasedtoEGP952.2millionasattheendof1H2015,upfromEGP825.7millionasatDecember2014.

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Egyptian Accounting Standards Reconciliation to IFRS

ThemaindifferencesbetweenEdita’sfinancialstatementsisthatIFRSstandardsrequirethecompanytoexpenseitsemployees’profitsharingwhileaspertheEgyptianAccountingStandardsthesaidamountsaretreatedasadistributionandhencenotincludedintheincomestatement.Furthermore,bothstandardsrequiredifferenttreatmentsformattersrelatedtoFXgainsandlossesaswellasthegainsandlossesonthesaleofFXintheEBITDAcalculation.In1Q2015,netemployees’profitsharingamountedtoEGP21.8millioncomparedtoEGP17.5millionin1Q2014.Additionally,EGP5.8millionofadjustmentsinEBITDAwereresultantfromFXlossesandthesaleofassets.

ThetablebelowshowsthereconciliationbetweenEdita’s1H2015financialstatementspreparedusingEASandIFRS.

in EGP mn 1H2015 EAS Adjustment 1H2015 IFRS Net Sales 1,044 1,044COGS(excludingM.O.H) (639) (8) (647)

Gross Profit 405 396 Gross Profit Margin 38.8% 38.0%

Selling&MarketingExp. (128) (6) (134)General&Admin.Exp. (74) (8) (82)NetOtherIncome/(Expense) 8 (5) 3 NetOtherGains/(Losses) - 5 5 Net Profit from Operations 211 190 Profit from Operations Margin 20.2% 18.2%

NetFinancingCost (0.88) (0.32) (1.20)

Profit Before Income Tax 210 189

IncomeTaxExpense (62) - (62)

Net Profit After Tax 149 127 Net Profit After Tax Margin 14.3% 12.2%

EBITDA 250 - 222 EBITDA Margin 24.0% 21.3%

*includesdepreciation&royaltyexpense**includesother(income)/expense,saleoffixedassets,FX(gain)/loss

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Development of Our MarketsSegmentsofEgypt’ssnackfoodmarketinwhichEditaoperatescontinuedtogrowy-o-y,albe-itatslowerlevelsthan1Q2015onthebackofseasonalityowedtotheschool-yearexaminationperiodwhichalsocoincidedwiththemonthofRamadan,twotypicallylow-demandseasons.

Selected Segments of the Snack Food Market in Egypt – January to JuneSegment Market Size (EGP mn) 2013-2015 CAGRSaltySnacks* 3,331 11.2%Cakes 847 8.9%Wafers 890 10.4%Croissants 403 37.0%

*Theruskmarketis4.8%oftotalsaltysnacks.Source:ACNielsenRetailAudits

Editacontinuedtodominatethesnackfoodmarketsegmentsinwhichitoperates.Itremainsthemarketleaderinboththecakeandcroissantsegmentswith64%and66%marketshares,respectively.Theslightdropinmarketsharescomparedtothefullyear2014areattributedtocapacitylimitationswhichshouldeasefollowingthecompletionofthenewlines’ramp-upphaseandastheiradditionalproductionhitsthemarket.GivenEdita’sdirectionofcurtailingsuppliesduringthelowseason,inlinewithitspolicyofnotstockpilingfinishedgoodsmorethantwotothreedays,thecompany’smarketshareinthewafersegmentcurrentlystandsat8%,withEditanowbeingthenumber-fourplayerinthemarket.Themarketshareintherusksbusinessreached35%in2Q2015,upfrom30%thepreviousquarter.Therusksmarketshareislimitedbycapacity,whichwilleaseoncethenewlinecomesintoproductionatyear’send,atwhichpointmanagementexpectsmarketsharetoincrease.BelowisasummaryofEdita’scom-petitivepositionwithinthesnackfoodmarketasattheendof2Q2015.Itisworthnotingthatstartingmid-July,Ramadan’sseasonalityeffectbegantowane,whichwillalsobesupportedbythebeginningoftheschoolyear,atypicallyhigh-demandseasonforthesnackfoodmarket.

Market Position

Market Share1

Relative Market Share4

Av. Consumer Price

(EGP / US$2) BrandsBrand

Awareness3

Cakes #1 64% 9.3x 0.7/0.09 100%

Croissants #1 66% 3.0x 1.16/0.15 100%

Rusks #2 35% 0.5x 1.00/0.13 79%

Wafers #4 8% 0.1x 1.00/0.13 90%

Candy #3 8% 0.4x 2.11/0.27 NA

87%of2Q2015 Revenue

Source:ACNielsenRetailAudit,IPSOS1.MarketsharesrefertotheJanuary-June2015period,withtheexceptionofthecandysegment,whichisasofFY2014asEditahasnotyetpurchasedquarterlydataforthissegment.

2.USD/EGPat7.83asofJuly30,2015(CBE).3.Brandawarenessmeasurestheshareofrespondentsthatwerefamiliarwiththebrandinaided,spontaneousconsumersurveys.

4.RelativemarketsharecalculatedasEdita’smarketsharedividedbymarketshareoflargestcompetitor.

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An Overview of Operating Divisions

MarketingIngeneral,therewasnochangeinEdita’smarketpositioningthisquarter.In2Q2015,marketingbegantopromoteEdita’simageamongconsumersasahouseofbrandsbylink-ingthecompany’snametoitssuccessfulanddominantbrands.AnewcorporatecampaignwaslaunchedduringApril2015throughoutdoors,digitalmediaandTV,andthroughthecontinuedbrandingofourdistributiontrucksandvans.ThecorporatecampaignwasverysuccessfulasitstrengthenedtheassociationofEditatoallitsbrandsinacreativeway,andthusfarithasgeneratedverypositivefeedbackfromallstakeholdersandachievedveryhighviewership.SpendingontheBakefamilyremainedfocusedondigitalmedia.TVadvertisingwasintroducedtomarkettheTodofamilyinadditiontotheusualout-dooranddigitalmediacampaigns,withtotalspendinghavingincreasedslightlyoverthepreviousyear.Thetwomainmedia-spenditemsweredirectedtowardMolto(tosupportthenewcapacityadditions)andthefirst-timeairingofthecorporatecampaign.Tomarketthecroissantsegment,outdooradvertisingwasaddedtotheusualTVanddigitalmediacampaigns.Thecorporatecampaign,whichwasairedonTVandsupportedbyanoutdooranddigitalcampaign,costapproximatelyEGP10million.

Editacontinuestomaintain100%brandawarenessinourcoremarkets,namelythecrois-santandcakesegments.Waferawarenesscontinuestoimproveandhasincreasedto90%.Brandawarenessintheruskssegmentremainsrelativelylowerthanothersegments,scor-ing79%;however,thisreflectsthecompany’smorefocusedcommunicationonsustainingandsupportingitsnicheconsumerbasethroughdigitalandbelow-the-linemedia,giventhelimitedproductioncapacitythusfar.

Withtheacquisitionofthetechnicalknow-howof11additionalproductsfromHostess,themarketingteamiscloselyworkingwiththeR&Ddepartmenttoworkonthenewproducts’branding.

Editacontinuestofollowavigilantpricingstrategyduetothehighpriceelasticityofbothitsmarketandtargetconsumerbase.During2Q2015,averageconsumerpricesforcakesandcroissantincreased4.5%and5.5%y-o-y,respectively.PriceswerestablefortherusksandwafersegmentsasEditadidnotlaunchanynewSKUsorundertakeanyindirectpriceincreasesinbothofthesesegments.Ontheotherhand,averagepricesforthecandyseg-mentjumpedby61.1%y-o-yasthe“Fakka”product–ahigh-pricedfamilypackofbothhardcandyandjelly–tookfulleffectafteritsintroductiontothemarketduringthesecondhalfof2014.

Development of Average Consumer Price by Product Segment

EGP 2Q2014 2Q2015 % ChangeCakes 0.67 0.70 4.5%Croissants 1.10 1.16 5.5%Rusks 1.00 1.00 -Wafers 1.00 1.00 -Candy 1.31 2.11 61.1%Average Edita 0.80 0.85 6.2%

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InAugust2015EditalaunchedtwonewcroissantSKUs,namelyMoltoMixintwovariations,whicharepricedatEGP2,apricepointthatisc.70%higherthantheaver-ageforEdita’sexistingcroissantportfolio.

Sales & DistributionIn1H2015,Edita’ssalesbychannelofdistributionreflectedthecompany’sstrategyofincreasingshiftingrevenuesmoretotheretailandtraditionalsaleschannelsandawayfromwholesaledistributionwhilesimultaneouslygrowingallchannels.Salesthroughwholesalechannelsin1H2015grewby9%toEGP649millionandcontributed59%oftotalrevenues,comparedto63%forsameperiodlastyear.Ontheotherhand,salesthroughtheretailandtraditionaltradechannelsgrewstronglyby25%y-o-ytoEGP343millionandcontributed32%oftotalrevenuescomparedto29%inthesameperiodduring2014.Contributiontorevenuethroughsalestosupplyandkeyaccounts(moderntrade)remainedsomewhatflaty-o-yandcollectivelycontributedapproximately3%oftotalrevenue.

Exportsincreasedby31%in1H2015over1H2014toEGP69millionandremainedap-proximately6%oftotalnetsales.During1H2015,Editaexportedto13countriesacrosstheMENAregionandAfrica,withitscoreexportmarkets–namelyPalestine,Iraq,Syria,JordanandLibya–constitutingover83%ofourtotalexportrevenue.Itisworthnotingthatduring2Q2015,EditaopenedanewexportmarketinTanzania,whichfallsinlinewithourstrategytocontinuallyexpandourexports’reachnotonlyacrosstheMENAregionbutalsointoAfrica.

Bytheendof2Q2015,thetotalnumberofcustomersthatEditadirectlycateredtostoodat63,228pointsofsale,upfrom57,659ayearearlier.Thetotalnumberofretailandtraditionaltradepointsofsalesservicedgrew10.7%y-o-yto57,982attheendofthequarter,whilethenumberofwholesalersserviceddeclinedby2.3%.ItisworthnotingthatthetotalnumberofretailersservicedbyEditaattheendof2Q2015surpassedEdi-ta’stotalnumberofclientsservicedasattheendof2Q2014,attestingtothecontinuedimplementationofthecompany’sstrategytoexpanditsproprietarydistributionnetworkacrossEgypt.Thetop100wholesalerscontinuedtoconstitutealargeportionoftotalsalesthroughthewholesalechannel,standingat38%comparedto41%ayearearlier.

Editacontinuestogrowitssalesforceefficiently,inlinewithbothcurrentandplannedgrowth.Thegrowthinsalesin2Q2015throughwholesalerswaspredominantlyduetotheincreaseindropsize/sizeoftheinvoiceperwholesaler,whilegrowthinrevenuethroughtheretailchannelswasafunctionofboththeincreaseindropsizeaswellastheincreaseinthenumberofretailersovertheperiod.Asshowninthefigurebelow,thereweresignificantimprovementsinallthemainKPIsinboththewholesaleandretailsidesofthebusiness.Thenumberofsuccessfulvisits,coverageandinvoicesizegrewover2Q2014levelswhilewastedeclined.

Revenue Contribution by Distribution Channel 1H2015*

Revenue Contribution by Distribution Channel 1H2014*

*FiguresarebasedonGrossSales

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Improving KPIs across Major Distribution Channels

Retail Wholesale

TosupportEdita’sstrategyofdevelopingretailsaleschannels,thenumberofdistribu-tioncentersiscurrentlyupto18from15in2Q2014.Nonewdistributioncenterswereopenedin2Q2015;threeareplannedtoopenin3Q2015.Thenumberofsalesrepre-sentativesincreasedto444attheendof2Q2015,upfrom417in2Q2014.

Industrial OperationsAttheendofApril2015,Editabegancommissioningthelastofthethreenewlinesin-stalledduringtheyear,dedicatedtotheproductionofXLandXXLMolto.Thenewlineaddsatotalof17,200tonsperannumtothecompany’scroissantproductioncapacity.

Thecakeandcroissantlinescommissionedattheendof1Q2015–whichaddedanad-ditionalcapacityof7,200and7,600tonsperannum,respectively–arecurrentlyoperatingatnearfull-capacityutilization.Meanwhile,thecroissantlineinstalledattheendofApril2015remainsintheramp-upphaseandisthusoperatingbelowfull-capacityutilization,bothduetoteethingandone-offmaintenanceissues.TheE07factoryinSixthofOctober(currentlyhousingthethreenewlinesandfourothers)experiencedafive-daystoppageduring2Q2015onthebackthemunicipality’smaintenanceworkstothewatergridandthemainpipelinefeedingareasintheSixthofOctoberindustrialzone,whichsawthefac-torywitnessseveralcutsinservices.Inaddition,Editaexperienced10daysofstoppageintheE07extension(HallB)duetotherequiredmaintenanceforthestructurehousingthenewlinesonthebackofseveresandstorms.Nevertheless,Edita’soverallaverageutiliza-tionratestoodat95%in2Q2015.

Inadditiontotheincreasedcapacitiesintroducedduring2015,enhancementsandmorestreamlinedplanningactivitiesacrossallsegmentsalsocontributedtoincreasedcapaci-tiesacrossallproductsegments.Thiswasespeciallynoticeableinthewafer,ruskandcandysegments,whichincreasedby10%,25%and109%,respectively.

Totalproductionintons(excludingtheproductionthatwastrial-basedonthenewlines)increasedby12%to26.8thousandtonsin2Q2015comparedto2Q2014.Thiscorre-spondswithanincreaseof10%inthenumberofpacksproduced,asEditahasproducedlarger-sizedSKUsanddelistedsmalleronessince2Q2015.

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Thetablebelowshowsthecomparativeactualproductionperproductsegmentfor2Q2015ascomparedto2Q2014inbothtonnageandpacks.

Actual Production in Tons and Packs(In Tons) (In Million Pouches)

2Q2014 2Q2015 Change (%) 2Q2014 2Q2015 Change (%)Croissants 7,018 7,576 8% 159 172 9%Cakes 15,018 16,702 11% 521 561 8%Rusks 805 893 11% 24 27 11%Wafers 603 799 33% 20 29 47%Candy 572 861 51% 16 26 69%Total 24,015 26,832 12% 739 816 10%

In2Q2015,EditamanagedtorenewallitscertificationsfortheECIfactoryincludingtheISO9001(QualityManagementSystem)andISO22000(FoodSafetyManagementSystem),ISO14001(EnvironmentalManagementSystem)andOHSAS18001(Occu-pationalHealthandSafetyManagementSystem).

Research and DevelopmentOurR&Ddepartmentcurrentlyhasaround90SKUsinthepipelinethatincludeseveralofthenewlyacquiredHostessproductswhicharebeingre-formulatedtosuitlocalmarket’stastes.Itmustbenotedthatthelaunchingofsomeofthe90SKUswillbesubjecttofinaldevelopmentandmarketresearchfindings.ItisalsoworthytonotethatthenewlylaunchedMoltoMixSKUsweredevelopedentirelyin-housebyEdita’sR&Dteam.Furthermore,inadditiontothestrudelsthataredueforlaunchinearlyJanuary2016,aspartofourexistingsegments,severalothernewSKUsarealsoslatedforlaunchduring2H2015/1Q2016.

OurtargetistohaveatleasttwoofthenewlyacquiredHostesscake-basedproductslaunchedandproducedonourexistingcakelinesbyyear’send.Editaisalsoconstantlyworkingonformulamodificationsforthecompany’sexistingproductportfolio.

Supply ChainTheSupplyChaindepartmentcontinuedtotrackglobalcommoditypricesinordertomaximizeEdita’soperationalefficiencies.In2Q2015,theSupplyChaindepartmentmanagedtosecuremostofthemajordirectmaterialsatanaverageprice6-8%lowerthanoriginallyanticipated.Despiteasofteninginmostglobalcommodityprices,cocoapricesincreasedbyanaverageof25%whilethepricesofOPPpackagingmaterialsincreasedbyanaverageof15-20%inthelocalmarket.ThishasnoforeseenimpactonEdita’scostbaseduring2015aspricesformostofthedirectmaterialshavebeenlockedatleastuntilyear’sendandinsomecasesupuntil1Q2016.Thecostofimporteddirectmaterialsremainsstablecomparedtothepreviousquarter,represent-ing24%oftotaldirectmaterialcostandcontinuingtobepartiallyfinancedthroughproceedsfromexports.Onapositivenote,milkpowderpriceshavefurtherdeclinedonthecommoditymarketandtheSupplyChaindepartmenthasseizedtheopportu-nitytolockinfavorablepricesforEdita’sneedsuntiltheendof1Q2016ataverageprices15%below1Q2015.

Direct Material Breakdown 2Q2015

Direct Material Breakdown 2Q2014

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ItisimportanttonotethatamongEdita’scontinuedoperationalefficiencyinitiativesistheoutsourcingofallnon-coreoperations,similartowhatwasappliedforemployees’transportandcafeteriamanagementduring2014.During2Q2015,Editamanagedtooutsourcethetransportofitsfinishedgoodsfromthefactoriestothedistributioncent-ers.Althoughthismaynotresultinlargefinancialsavings,itismoreefficientintermsoflogistics,maintenanceandminimizingdowntimeanddelaysthatmayresultfromthebreakdownofthecompany’strailers.AsaresultEdita,soldallitstrailersandheavytrucksthatwereusedtotransportthefinishedgoodstothedistributioncentersduringthequarterandhassincerealizedagainonthesale.

Planningactivitiesshowedsignificantimprovementy-o-yduring2Q2015intermsofincreaseddailyproductioncapacitiesacrossallthefactories,productionlineutilizationandkeepinginventorycoverageforalldirectmaterialsatanaverageof0.89monthsandamaximumof2.4daysofsalesforfinishedgoods.

Human ResourcesEditacontinuestobecommittedtodrivehighperformanceanddeveloptalentforits5,385employees.During2Q2015,Editalaunchedanewtrainingacademy,theEditaTechnicalAcademy,inadditiontoitsongoingprograms:theEditaManufacturingandtheEditaSalesAcademies.Furthermore,during2Q2015theHRdepartmentsuccess-fullylaunchedthefirstmoduleinthe“SuccessFactorsSystem,”anewintegratedandcomprehensivetalent-managementsystem.

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Investor Contacts

Ms.DinaEl-SonbatyVice-PresidentInvestorRelations&CorporateAffairs

T:+20238516464M:+201222187052dina.sonbaty@edita.com.eg

Ms.MennaShamsElDinInvestorRelations&BusinessDevelopmentManager

T:+2023851-6464M:+201001542428menna.shamseldin@edita.com.eg

About Edita Food IndustriesEdita,foundedin1996andheadquarteredinEgypt,isaleaderinthegrowingEgyp-tianpackagedsnack-foodmarket.TheCompanymanufactures,marketsanddistrib-utesarangeofbrandedbakedsnackproductsincludingpackagedcakes,croissants,rusks(bakedwheat)andwafersaswellasselectedconfectionary/candyproducts.TheCompany’slocalbrandportfolioincludeshouseholdnamessuchasTodo,Molto,BakeRolz,BakeStix,FreskaandMiMix.TheCompanyalsohasexclusiveownershipoftheinternationalHTTbrandsTwinkies,Hoho’sandTigerTailinEgypt,Libya,Jordan,Palestine,Morocco,Algeria,Tunisia,Syria,Lebanon,Iraq,Bahrain,Oman,theUAE,Kuwait,QatarandSaudiArabia,andispartytoatechnicalassistanceandknow-howagreementtomanufacture11additionalHTTbrandsacrossitsterritories.TheCompanyholdsstrongnumber-onemarketpositionsinitscorecakeandcroissantsegments,anumber-twomarketpositioninrusksandgrowingmarketpositionsinthewafersandcandysegments.In2014,theCompanyderivedc.94%ofitsrevenuefromEgyptandc.6%fromover14regionalexportmarkets.Learnmoreatir.edita.com.eg

Forward Looking StatementsThiscommunicationcontainscertainforward-lookingstatements.Aforward-lookingstatementisanystatementthatdoesnotrelatetohistoricalfactsandevents,andcanbeidentifiedbytheuseofsuchwordsandphrasesas“accordingtoestimates”,“aims”,“anticipates”,“assumes”,“believes”,“could”,“estimates”,“expects”,“forecasts”,“in-tends”,“isoftheopinion”,“may”,“plans”,“potential”,“predicts”,“projects”,“should”,“totheknowledgeof”,“will”,“would”or,ineachcasetheirnegativesorothersimilarexpressions,whichareintendedtoidentifyastatementasforward-looking.Thisapplies,inparticular,tostatementscontaininginformationonfuturefinancialresults,plans,orexpectationsregardingbusinessandmanagement,futuregrowthorprofitabilityandgeneraleconomicandregulatoryconditionsandothermattersaffectingtheCompany.

Forward-lookingstatementsreflectthecurrentviewsoftheCompany’smanagement(“Management”)onfutureevents,whicharebasedontheassumptionsoftheManage-mentandinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatmaycausetheCompany’sactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedbytheseforward-lookingstatements.Theoccurrenceornon-occurrenceofanassumptioncouldcausetheCompany’sactualfinancialconditionandresultsofoperationstodiffermateriallyfrom,orfailtomeetexpectationsexpressedorimpliedby,suchforward-lookingstatements.

TheCompany’sbusinessissubjecttoanumberofrisksanduncertaintiesthatcouldalsocauseaforward-lookingstatement,estimateorpredictiontodiffermateriallyfromthoseexpressedorimpliedbytheforward-lookingstatementscontainedinthisprospectus.Theinformation,opinionsandforward-lookingstatementscontainedinthiscommuni-cationspeakonlyasatitsdateandaresubjecttochangewithoutnotice.TheCompanydoesnotundertakeanyobligationtoreview,update,confirmortoreleasepubliclyanyrevisionstoanyforward-lookingstatementstoreflecteventsthatoccurorcircumstancesthatariseinrelationtothecontentofthiscommunication.

Shareholder Structure as of 2Q15