venus remedies research report update

C O M P A N Y U P D A T E

India

22 Apr 2013 Venus Remedies Rs 252

Sec to r : Phar ma Po s i t i ve r esear ch r esu l t s

Four-s reports are available on BLOOMBERG, Reuters, Thomson Publishers and Market Publishers

BSE Code 526953 NSE Code VENUSREM CMP (Apr 22’) 252 52W H/L 327/158 Nifty 5,834 Sensex 19,169 Equity Cap (m) 3,073 Face Value 10 Shares (m) 10.54 Free Float 65.78% Market Cap (m) 2,652 3M Avg Vol 12,857

Rs

Consolidated Financials

FY'11 FY'12 9mFY'13*

Sales 3,631 4,098 3,341

EBITDA 892 1,028 884

PAT 462 470 452

EBITDA(%) 24.6 25.1 26.3

PAT(%) 12.7 11.5 13.4

ROE(%) 22.6 17.3 -

ROCE(%) 19.1 16.3 -

P/E Ratio(x) 3.9 3.4 4.4#

EV/EBITDA(x) 4.1 3.6 4.1#

EPS (Rs) 50.6 48.3 62.3#

*Standalone, #ttm Rs mn

34%

14%

0%

32%

20%

Shareholding- 31st Dec-2012

Promoter

FII

DII

Others

Bodies Corporate

0

50

100

150

200

250

300

350

Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13

Venus Remedis Sensex

Venus Remedies took another step on its R&D journey

with its first market authorisation deal with a pharma

major in South Africa. The company also launched a

key R&D product, Elores, in India, which it expects to

become a Rs2bn product in the next 5 yrs.

We believe Venus is beginning to show results from

its R&D program. With Venus’ intent on monetising its

R&D pipeline, there is strong likelihood of continued

positive news flow, which should lend buoyancy to

the stock price.

Breakthrough in R&D IP commercialisation with a

marketing deal with South African pharma major

Venus announced its first out-licensing deal in Feb, where it

granted South African pharma major, Adcock, exclusive

marketing rights for its research product Potentox.

This deal strengthens our confidence in company’s IP wealth

and its ability to find out-licensing partners. More such deals

for multiple geographies for its R&D pipeline are expected in

2013.

Two new R&D products launched, including US

patented Elores

Venus launched US patented anitibiotic Elores in Indian

market in January this year. The company is targeting Rs

5bn revenue from AMR capable Elores in the next five years.

Venus also launched patent protected, topical nano-

emulsion, Trois in India for arthritic pain.

Got two patents for Vancoplus

The company received patents from Canada and Mexico for

its R&D product Vancoplus. Vancoplus is a novel AMR

product to combat MRSA infection. Company already has

manufacturing facility in compliance with Canadian

regulations for Vancoplus.

Company performance as per expectations

Venus Remedies has showed respectable growth in revenue

of 15.7% Y-o-Y posting Rs3,341mn revenue in 9mFY13. It

posted PAT of Rs452mn, up by 26.6% Y-o-Y from same

period last year, on account of lower interest cost, taxes and

other expenditures.

Valuations

Venus quotes at 4.4x ttm EPS. This is very cheap given its

consistent top-line growth and steady progress in R&D.

Valuation should improve with expected R&D

commercialisation deals and R&D product launches.

Company Report: Venus Remedies 22 Apr 2013

Four-S Research 2

Company continues on stable growth path

Particulars (` mn) 9M FY13 9MFY12 Chg YoY (%)

Net sales 3,340.7 2,886.4 15.7

Other Operating Income 19.5 23.1 -15.6

Total Operating Income 3,360.2 2,909.5 15.5

Total Expenditure 2,476.1 2,142.9 15.5

Consumption of Raw Materials 1,939.9 1,674.7 15.8

(Increase) / Decrease In Stock In

Trade & WIP

-61.1 -90.5 -32.5

Employees Cost 173.5 166.2 4.4

Other Expenditure 423.8 392.6 8.0

EBITDA 884.1 766.5 15.3

Depreciation 237.6 183.4 29.6

EBIT 646.6 583.2 10.9

Interest & Finance charges 182.8 186.4 -1.9

Other Income 7.4 1.8 311.1

PBT 471.2 398.6 18.2

Tax Expense 19.2 41.5 -53.7

PAT 451.9 357.1 26.6

Rs mn *Standalone (Source: Capitaline, company reports)

Stable growth registered in last 9 months driven by domestic

and key segments

Venus Remedies has posted revenue of Rs 3,341mn for 9mFY13, a

Y-o-Y growth of 15.7%. The company has performed well in all 3

quarters this year while growing at 15-16% on Y-o-Y basis.

Driven by domestic market and key therapeutic segments

Oncology sales

grew 22% in

9mFy13

This consistent growth is due to good demand from domestic market

for the company’s products. Domestic market grew 17% during this

period. The institutional division also reported good sales, showing a

growth of 30% from Rs 219mn during 9mFY12 to Rs 285mn for

9mFY13.

The anti-cancer segment, the key segment for Venus, also had good

growth during this period. The segment registered a growth of 22%

Y-o-Y growing to Rs 1,064mn from Rs 874mn in last year. Along with

anti-cancer, SVP segment also grew by 21% during this period.

The company has shown performance on the expected line till now

and is expected to grow along similar trend of 13-15% for the next

1-2 years. This 15% growth is excluding the growth by

commercialising its IP wealth.


Four-S Research 3

Stable performance in Q3

Rs mn

The company had a good third quarter this year with revenue

growing by 18.7% Y-o-Y from Rs940mn to Rs1,116mn. Top-line was

supported by good traction in the export market. Exports grew by

26.3% during this quarter.

The company’s key segment anti-cancer grew by 25.3%. Venus had

strong net margin improvement this quarter as PAT grew 55% from

Rs 103mn in Q3Fy12 to Rs 160mn in Q3Fy13. The Company lowered

interest charges this quarter by refinancing the loan with FCCB.

Maintains profitability

Company reported EBITDA of Rs 884 and PAT of Rs 452mn in

9mFy13 compared to Rs 767mn EBITDA and Rs 357mn PAT,

respectively, during the same period last year. EBITDA margin of

26.3% for 9mFY13 was largely in line with last year.

For Q3 FY13, Venus reported EBITDA margin of 26.5% and PAT

margin of 14.5%.

The increasing contribution from oncology segment and growing

revenue from its R&D products is helping the company to sustain

these margins levels.

Particulars (` mn) Q3 FY'13 Q3 FY'12 Q2 FY'13

Chg YoY (%)

Chg YoY (%)

Net sales 1,116.2 940.0 1,104.1 18.7 1.1

Other Operating Income 10.1 18.2 4.0 -44.5 151.7

Total Operating Income 1,126.4 958.3 1,108.1 17.5 1.6

Total Expenditure 827.3 720.8 820.2 14.8 0.9

Consumption of Raw

Materials

635.4 528.6 652.2 20.2 -2.6

(Increase) / Decrease In Stock

In Trade & WIP

0.6 -2.9 -31.9 118.7 -101.7

Employees Cost 58.4 55.9 58.1 4.3 0.5

Other Expenditure 133.1 139.2 141.9 -4.4 -6.2

EBITDA 299.0 237.5 287.9 25.9 3.9

Depreciation 80.1 61.3 79.8 30.6 0.4

EBIT 218.9 176.2 208.1 24.3 5.2

Interest & Finance charges 52.9 66.8 53.7 -20.8 -1.5

Other Income 3.5 1.0 2.7 238.2 28.3

PBT 169.4 110.4 157.1 53.5 7.9

Tax Expense 8.9 7.1 6.2 25.4 44.1

PAT 160.6 103.3 150.9 55.4 6.4


Four-S Research 4

Key Ratios Q3 FY'13 Q3 FY'12 Q2FY'13

EBITDA Margin 26.55% 24.79% 25.98%

Net Margin 14.25% 10.78% 13.62%

Total Expenditure/ Total Operating Income 73.45% 75.21% 74.02%

Raw Material Cost/ Total Operating Income 56.46% 54.85% 55.98%

Staff Cost/ Total Operating Income 5.18% 5.84% 5.24%

Other Expenditure/ Total Operating Income 11.82% 14.52% 12.81%

*Standalone (Source: Capitaline, company reports)

Margins compare favourably with peers

Venus Remedies continued to maintain its margin edge over its mid-

size phama peers. Its high margin oncology segment which

contributed around 30% to revenue and R&D products which

contributed 25-26% to total revenue are the key drivers of strong

margins.

As research products contribution to revenue is expected to move

up, margins could expand going forward.

Better profitability supporting the growth

Company

9M FY13 Total

Income EBITDA EBITDA Margin

Net Income

Net Income Margin

Mid-Cap Peers

Ajanta Pharma 5,812 1,507 26% 740 13%

Indoco Remed 4,660 684 15% 298 6%

Natco Pharma 4,696 1,148 24% 687 15%

Nectar Life 12,572 2,157 17% 600 5%

Parabolic Drugs 7,049 532 8% -411 -6%

Injectable Peers Strides Arcolab 1,683 495 29% 160 10%

Key Ratios 9M FY13 9MFY12

EBITDA Margin 26.31% 26.35%

Net Margin 13.45% 12.27%

Total Expenditure/ Total Operating Income 73.69% 73.65%

Raw Material Cost/ Total Operating Income 55.91% 54.45%

Staff Cost/ Total Operating Income 5.16% 5.71%

Other Expenditure/ Total Operating Income 12.61% 13.49%


Four-S Research 5

Ahlcon Parenterals 760 169 22% 83 11%

Parenteral Drug 213 -14 -7% -76 -36%

Claris Life 582 218 37% 82 14%

Kilitch drugs 260 39 15% 28 11%

Average 3,190 578 19% 183 4%

Venus 3,341 884 27% 452 14%

(Source: Capitaline, company reports)

Rs mn

Q3’FY13 Company

Total Income EBITDA

EBITDA Margin

Net Income

Net Income Margin

Mid-Cap Peers

Ajanta Pharma 2,257 603 27% 326 14%

Indoco Remed 1,503 197 13% 74 5%

Natco Pharma 1,601 458 29% 262 16%

Nectar Life 3,689 761 21% 215 6%

Parabolic Drugs 1,503 66 4% -256 -17%

Injectable Peers Strides Arcolab 5,973 1526 26% 554 9%

Ahlcon Parenterals 272 76 28% 43 16%

Parenteral Drug 689 -36 -5% -261 -38%

Claris Life 1,936 693 36% 252 13%

Kilitch drugs 41 4 11% 1 3%

Average 1,946 435 19% 110 3%

Venus 1,116 299 27% 161 14%

R&D investments showing results

Signs marketing rights deal with South African pharma major

Signs out-

licensing deal in

South Africa for

Potentox

After 10 years of hard work in building its R&D product portfolio,

Venus Remedies has started to realize benefits from its R&D pipeline.

The company has made positive stride towards commercialisation of

its R&D IP, with its first out-licensing deal for its R&D products. The

company signed an exclusive marketing rights deal with major South

African pharma major, Adcock, for its research product Potentox.

Commercial details for this deal are not available.

Adcock Ingram is a 120 year old $2bn market cap company with 10%

market share in South African market. Adcock Ingram has got the

exclusive marketing rights for 15 years and they will be bringing the

product into the market by mid of 2015.


Four-S Research 6

Potentox is an AMR efficient anti-biotic product used for Hospital

acquired Pneumonia and Febrile Neutropenia infections. The company

has patents in USA, Canada, New Zealand, South Korea, South Africa

and Ukraine for Potentox.

We expect more similar deals in 2013. With its 25 R&D products

kitty, and more than 80 approved patents and 360 applied patents,

the company has the potential to make many more such deals.

Vancoplus receives patents from Canada and Mexico

Gets its first

patents in

Canada and

Mexico

Venus Remedies received 2 significant patents for Vancoplus from

Canada and Mexico. These are the first patents received by the

company from these countries. Vancoplus is an ‘Antibiotic Adjuvant

Entity’ (AAE) constituting Ceftriaxone plus Vancomycin along with

an adjuvant. Vancoplus helps in restricting and fighting MRSA

(Methicillin Resistant Staphylococcus Aureus) and further helps in

reducing treatment costs and time.

The patent from Canada is important for Venus Remedies as it will

allow the company to reach out to the 3rd fastest growing market

globally.

The patent in Mexio is also the first in that country for Venus,

opening the gates of second leading market in the Latin America

region.

There market for MRSA medicines is fast growing with growing MRSA

cases all over the world. Vancoplus has turned out to be a successful

product for the company till now with strong revenue growth of 50%

for last 3 years with good traction from domestic as well as emerging

markets across the globe. Vancoplus also gave the first US patent for

the company. Vancoplus also has patents from South Africa, New

Zealand, Ukraine and Australia and is expecting patents from Russia,

Brazil and Japan soon.

Elores: A US patented product launched in India

Launches

Elores, a

powerful

antibiotic,

highly effective

against

Superbugs

The company has launched its one of the most anticipated products

from its AMR product kitty, ‘Elores’, in Jan 2013. It is a novel

Antibiotic Adjuvant Entity (AAE) to combat antimicrobial resistance

caused by multi drug resistant, ESBL (Extended-spectrum beta-

lactamase) producing strains. Due to its efficacy over AMR, Elores

has edge over most of its competitors in the market.

Elores has a Antibiotic Adjuvant Entity which makes it effective

against even the toughest carbapenemase resistant Metallo-beta-

lactamses. This makes Elores fight even with ‘Superbugs’ which are

very difficult to treat due to antibiotic resistance.


Four-S Research 7

Patents all over the globe

Elores is a strongly patented product with patents from more than 40

countries all over the globe. It has got patents from US, Australia,

Brazil and 37 EU countries. The company has also applied for market

authorization in EU and is expecting to get it soon. Patents are also

expected from South Korea, Japan and UAE.

Elores- Mechanism

Elores is

effective against

multi drug

resistant (MDR)

pathogens

Elores basically consists of an anti-biotic, third generation

cephalosporin, along with non antibiotic adjuvant, Disodium Edetate.

This third generation cephalosporin works as an inhibitor for beta

lactamase. Beta lactamase is an enzyme used by bacteria to resist

effect of anti-biotics. This unique antibiotics-adjuvant-entity creates a

synergistic effect due to its activity on acquired multiple resistance in

Gram Negative Enterococci and Rods, and acts by multiple

mechanisms.

Elores is effective against toughest multi drug resistant (MDR)

pathogens/bacteria which are not susceptible to most of the existing

antibiotics. MDR pathogens have developed resistance to anti-biotics

by creating enzymes such as Metallo-beta-lactamase (MBL) or NDM-1

(New Delhi metallo-beta-lactamase 1) or ESBL (Extended spectrum

beta lactamases) which can break down many common antibiotics.

Elores increases cell permeability while working on Cell

impermeability mechanism of MDRs, regulate 'Efflux pump over

expression', breaks bacterial 'Biofilms', prevents 'Transfer of resistant

plasmid' and hence the spread of resistance is controlled. So Elores

not only kills resistant pathogens (Bacteria) but also prevents the

spread of the resistance.

Domestic market for Elores

As per the company’s data, Elores can manage to reduce the

hospitalization bills for a patient by 30% and drug cost by 50%.

Venus’s study finds that, on an average, a patient with hospital-

acquired infections stays in hospital for 23 days and in ICU for 11.3

days. Elores can significantly bring down these statistics and so the

cost for these patients.

As per company provided data, out of total Rs 850cr anti-biotic

market in India, Rs 248cr market is contributed to AMR due to

ESBL/MBL resistance. Out of this Venus Remedies is planning to

capture the market share of Rs 200cr within next 5 years.

Plans to launch in international market

The company is planning to launch Elores in South Korea in next

year. It is also waiting for regulatory approval from EU region. Once

it gets that it will be launching Elores in EU market too.

With patents in US and other regulated countries, the company will


Four-S Research 8

commercialise the product by out-licensing it in these regions.

The total Antibacterial Market in North America is $6,768mn and

$7,156mn in Europe. Elores faces a competitive market of around

$2,000mn in North America and $2,500mn in Europe

‘Trois’ launched - patent protected topical nano-emulsion for

arthritic pain

Trios targets

rheumatoid

arthritis

Another patented product from R&D efforts of Venus Remedies, Trois,

was launched in India in this period. Trois is a topical nano-emulsion

product based on natural medicines for arthritic pain. As per the

company it is the only drug available in the market for treating

arthritis without any side effects. Many of its competing products

have severe side effects and are cytotoxic (toxic to cells).

Due to this, Trois can be expected to do well in the rheumatoid

arthritis drug market in India. Rheumatoid arthritis drug market in

India is expected to reach $672mn by end of this year.


Four-S Research 9

Valuation: Still cheap despite recent gains

Company Price Market

Cap EV TTM

Sales TTM

EBITDA TTM PAT P/E

EV/ Sales

EV/ EBITDA

Mid-Cap Peers

Ajanta Pharma* 613 15934 17816 7538 1886 976 16.3 2.4 9.4

Indoco Remedies* 63 5962 6999 6136 902 423 14.1 1.1 7.8

Natco Pharma 425 13652 15872 6112 1413 733 18.6 2.6 11.2

Nectar Lifesci.* 16 3342 13511 16510 2879 755 4.4 0.8 4.7

Parabolic Drugs* 8 432 5632 9709 901 -321 -1.3 0.6 6.3

Injectible Peers

Strides Arcolab 861 49454 72521 22104 12394 8462 5.8 3.3 5.9

Ahlcon Parent(I)* 353 2376 2586 935 190 85 27.9 2.8 13.6

Parenteral Drugs 100 2666 6362 2944 -336 -1185 -2.3 2.2 -18.9

Claris Lifescien 188 11500 14016 7627 2711 1039 11.1 1.8 5.2

Kilitch Drugs 23 291 262 427 905 694 0.4 0.6 0.3

Venus Remedies* 252 2652 4873 4475 1176 608 4.4 1.1 4.1

Rs mn*Standalone (Source: Capitaline, company reports)

PE Band chart

Strong upside

possible if R&D

results keep

coming in 2013

Venus continues to trade at low absolute valuations, and much below

peer averages.

It is currently trading at a ttm P/E of 4.4x and ttm EV/EBITDA of

4.1x. The company can have a strong upside going forward, if it

continues to show results from its R&D pipeline.


Four-S Research 10

Financial Annexure

Profit & Loss Statement

Income Statement FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 9M

Gross Sales 2,165 2,692 3,144 3,637 4,106 3,341

Less : Excise Duty 9 4 4 6 7 0

Revenue from Operations 2,156 2,688 3,140 3,631 4,098 3,360

Decrease/(Increase) in Stock -48 -82 -62 -39 -92 -61

Raw Materials Consumed 1336 1668 1885 2054 2351 1940

Manufacturing/Other expenses 73 107 147 171 174 0

Payments to and provision for employees 119 141 167 200 248 174

Power & Fuel Cost 19 20 17 27 27 0

Selling and Distribution Expenses 62 98 153 198 230 0

Administrative & Other expenses 57 87 91 119 130 424

Miscellaneous Expenses 25 23 14 9 2 0

Total Expenses 1,643 2,063 2,413 2,739 3,070 2,476

EBITDA 512 625 728 892 1,028 884

Depreciation 50 68 125 181 250 238

EBIT 462 558 603 711 778 647

Other Income 19 3 2 4 5 7

Financial Expenses 48 84 141 189 275 183

Profit before tax and Exceptional Items 433 477 464 526 508 471

Exceptional Items

-

-

-

-

- -

Profit before tax 433 477 464 526 508 471

Tax 75 37 68 64 38 19

Profit after tax before minority interest 358 440 396 462 470 452

Reported net profit 358 440 396 462 470 452

(Rs mn), consolidated financials


Four-S Research 11

Balance Sheet

Balance Sheet FY'08 FY'09 FY'10 FY'11 FY'12

Shareholder's Equity

Share Capital 85 85 85 91 97

Reserves and Surplus 784 1,259 1,627 2,236 2,885

Money received against share warrants - - - 42 90

Total equity capital 890 1,386 1,712 2,369 3,073

Liabilities

Secured Loans 475 698 917 1,648 1,966

Unsecured Loans 482 618 577 221 237

Deferred Tax Liability 42 60 76 91 -

Other Liabilities

22 27

Total Liabilities and Owner's Equity

1,889 2,762 3,281 4,351 5,303

Assets

Goodwill on consolidation - - - - -

Gross Block 1,526 2,096 2,609 3,429 4,302

Less: Depreciation 138 192 314 496 749

Net Fixed Assets 1388 1905 2295 2933 3553

Work-in-progress 14 8 7 145 230

Investments - - - - -

Inventory 278 446 619 754 963

Debtors 169 330 283 357 406

Cash and Bank Balance 11 16 24 31 167

Other Current Assets 0 0 0 0 0

Loans and Advances 183 239 260 241 298

Total Current Assets 1,518 1,519 1,520 1,521 1,522

Other Assets

139 260

Current Liabilities 86 113 98 114 181

Provision 106 92 121 143 140

Total Current Liabilities 192 205 220 257 321

Net Current Assets 449 825 967 1127 1513

Total Assets 1889 2762 3281 4,351 5303

(Rs mn)


Four-S Research 12

Cash Flow Statement

Cash Flow Statement FY'08 FY'09 FY'10 FY'11 FY'12

Net Profit/(Loss) before Tax 433 477 464 526 509

Depreciation 50 52 125 182 113

Deferred Employee Compensations 4 2 2 0 0

Expenses Amortised 15 14 13 9 140 Adjustment of excess mat Transferred to gen reserve 0 0 -15 53 38

Adjustment for FBT -2 -3 25 4 9

Operating Cash flow before Wcap 500 541 613 774 0

Adjustments for increase /decrease in Current

Assets -275 -275 -148 -327 -352

Decrease / Increase in Current Liabilities/ Provisions -33 -72 -123 -73 -39

Extraordinary Items -2 -4 0 0 0

Cash Generated from Operations 190 189 342 373 417

Direct Taxes Paid 0 0 0 0 0

Operating Cash flow- A 190 189 342 373 417

Purchase/Sale of Fixed Assets (net) -743 -570 -512 -820 -873

Decrease in Capital Work-in-Progress (including capital advances) 403 6 0 -144 -77

Interest received 1 0 0 0 0

Cash from Investing activities- B -338 -564 -512 -964 -951

Proceeds from Issue of Share Capital 0 0 0 48 6

proceed from share capital(share premium) -26 198 0 175 166

Proceeds from Long Term Borrowing( Net) 133 160 25 731 112

Proceeds from Short term Borrowing( Net) 22 20 153 -357 201

Proceeds from share warrants

48

Cash from Financing activities- C 129 379 178 598 533

Change in Cash= A+B+C -19 5 8 7 -2

Opening Balance 30 11 13 24 31

Closing Balance 11 16 21 31 29

(Rs mn)


Four-S Research 13

Ratios

Ratios FY'08 FY'09 FY'10 FY'11 FY'12

EPS 42.4 52.0 46.7 50.6 50.6

CEPS 22.5 22.4 40.4 40.9 44.8

DPS 2.0 2.5 1.0 1.3 1.4

Valuation Ratios

P/E Ratio 9.1 2.9 5.5 4.0 3.4

EV/EBITDA 8.2 4.1 5.0 4.1 3.6

EV/Sales 2.0 1.0 1.2 1.0 0.9

Profitability

EBITDA margin 23.8% 23.3% 23.2% 24.6% 25.1%

Pretax margin 20.1% 17.7% 14.8% 14.5% 12.4%

Net margin 16.6% 16.4% 12.6% 12.7% 11.5%

Return on avg. Equity 21.7% 38.6% 25.5% 22.7% 17.3%

Return on avg. Capital employed 18.1% 24.5% 20.4% 19.1% 16.3%

Growth Ratios

Revenue growth 53.7% 24.7% 16.8% 15.6% 12.9%

EBITDA growth 69.3% 22.0% 16.3% 22.6% 15.2%

Net profit growth 52.5% 10.0% -2.7% 16.8% 1.7%

Activity/Turnover Ratios

Asset turnover 0.9 1.3 1.1 1.0 0.9

Working Cap turnover 6.2 4.2 3.5 3.3 3.3

Debtors turnover 16.3 10.8 10.3 11.3 11.3

Debtor Days 22.4 33.8 35.6 32.2 32

Inventory turnover 9.4 7.4 5.9 5.3 4.8

Inventory Days 38.8 49.2 61.9 69.0 76.5

Payables turnover 32.2 27.0 29.7 33.8 27.8

Payables Days 11.3 13.5 12.3 10.8 13.1

Liquidity Ratios

Current Ratio 1.4 1.7 1.5 1.7 1.5

Cash Ratio 0.2 0.1 0.1 0.1 0.1

Solvency

Debt Equity 1.1 0.9 0.9 0.8 0.7

Leverage Ratio 2.1 2.0 1.9 1.8 1.7

Net Debt / EBITDA 1.8 2.1 2.0 2.1 2.1

Interest Coverage 9.7 6.6 4.3 3.8 2,8


Four-S Research 14

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