Fiem Industries Ltd Management Discussions

GLOBAL ECONOMIC OUTLOOK

The baseline forecast for the world economy is to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. A slight acceleration for Advanced Economies—where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025—will be offset by a modest slowdown in Emerging Market and Developing Economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with Advanced Economies returning to their inflation targets sooner than Emerging Markets and Developing Economies. The pace of expansion is low by historical standards, owing to both near-term factors, such as still-high borrowing costs and withdrawal of fiscal support, and longer-term effects from the COVID-19 pandemic and Russias invasion of Ukraine; weak productivity growth; and increasing geo-economics fragmentation. On the downside, new price spikes stemming from geopolitical tensions, including those from the war in Ukraine and the conflict in Gaza and Israel, could, along with persistent core inflation where labor markets are still tight, raise interest rate expectations and reduce asset prices. Multilateral cooperation is needed to limit the costs and risks of geo-economics fragmentation and climate change and speed the transition to green energy.

[Source: World Economic Outlook, IMF- April 2024]

INDIAN ECONOMIC OUTLOOK

According to the ‘Economic Review for March 2024, released by the Indian government in April 2024, Indias economic performance has remained robust despite global challenges and geopolitical concerns. This can be attributed to strong domestic demand, rural demand pick-up, robust investment, and sustained manufacturing momentum, as mentioned in the review. It also mentioned that the price pressures continue to abate from the country. “Globally, inflation management continues to remain a key priority.” Despite the positive trajectory, the RBI acknowledged potential challenges on the horizon, including geopolitical tensions, domestic weather-related disruptions, and the Indian Meteorological Departments forecast of an above-normal monsoon in the upcoming fiscal year. In light of these factors, the RBI has projected Consumer Price Index (CPI) inflation for the fiscal year 2024-25 at 4.5 percent.

Furthermore, both the RBI and the International Monetary Fund (IMF) have issued optimistic growth projections for India, bolstering confidence in the nations economic outlook.

Notably, March 2024 witnessed several indicators of robust economic performance, including record-breaking achievements in the stock market, remarkable Goods and Services Tax (GST) collections, and substantial growth in both the manufacturing and services sectors.

The buoyant domestic economic landscape is further evidenced by improvements in consumer and investor confidence, reflected in enhanced sentiment across various sectors.

Economic Review for March 2024, supplemented the second advance estimates, released by the National Statistical Office (NSO) on 29th February 2024, which pegged Indias 2023-24 real GDP growth at a high rate of 7.6 percent. Following this, most professional forecasters, international organizations, and rating agencies scaled up their 2024-25 growth forecast for India.

The countrys remarkable growth rate of 8.4% in the third quarter of the fiscal year 2023-24 surpassed all expectations, as market analysts had estimated a slower growth rate. With substantial revisions to the data from the first three quarters of the fiscal year 2023-24, Indias GDP growth already touched 8.2% year-over-year (YoY) in these quarters.

The International Monetary Fund (IMF) projected Indias growth to remain at or above 6.5% from FY25 to FY30. As per estimates among major Advanced Economies and in Emerging Market and Developing Economies, India is projected to be the fastest-growing economy with its growth forecasted at 6.8% in 2024 (FY25) and then remaining at 6.5% in each year from 2025 (FY26) to 2029 (FY30).

In the near term, the Indian economy is expected to maintain its robust growth momentum and upward trajectory. This growth will be driven by strong domestic consumption, continued investment in infrastructure, and the implementation of structural reforms aimed at enhancing productivity and competitiveness. The governments focus on digitalization, innovation, and sustainability is likely to spur growth across various sectors. Additionally, the expansion of the manufacturing and services sectors, supported by initiatives like the Production Linked Incentive (PLI) schemes and the Make in India program, will play a crucial role in sustaining economic momentum. However, challenges such as inflationary pressures, global economic uncertainties, and potential disruptions in supply chains will need to be carefully managed. Overall, the outlook for the near term is positive, with India poised to solidify its position as one of the worlds fastest-growing major economies.

INDUSTRY STRUCTURE AND DEVELOPMENT Indian Automobile Industry

The Indian Automobile Industry is one of the largest in the world, playing a significant role in the countrys economic development. The sector includes the production of Passenger Vehicles, Commercial Vehicles, Three-Wheelers, Two-Wheelers, and O_-highway Vehicles, with a diverse range of companies contributing to its robust growth. Alongside, the Indian Auto Component industry supports this sector, supplying essential parts and systems, and has evolved into a global hub for Automotive Components. The Indian Automobile Industry has continued to grow, driven by factors such as rising disposable incomes, urbanization, and favorable government policies. The industry now stands as a major contributor to the nations GDP, employment, and exports. The focus has also shifted towards sustainability, with increased investments in electric vehicles (EVs) and hybrid technologies.

Indian Auto Component Industry

The Indian Auto Component industry is integral to the Automobile sector, supplying a wide range of parts, including Automotive Lighting, body parts, engine components, transmission parts, brake systems, electrical parts, and more. This industry has grown alongside the Automobile sector, benefiting from technological advancements and increased demand. The industry has seen significant technological progress, with an emphasis on research and development (R&D) and innovation. The adoption of Industry 4.0 practices, including automation, robotics, and IoT, has enhanced productivity and quality.

The Indian Automobile and Auto component industries have come a long way, evolving from modest beginnings to becoming major contributors to the global automotive landscape. The synergy between these sectors has driven technological advancements, economic growth, and employment. As the industry navigates challenges and leverages opportunities, the future promises continued growth and innovation, with a focus on sustainability and global competitiveness. The governments supportive policies and the industrys adaptability will play crucial roles in shaping the next phase of development.

Indian Automobile Industry: FY 2023-24 Performance

During the financial year 2023-24, the Indian automobile industry experienced robust growth compared to FY 2022-23, fuelled by several factors. The resurgence in demand was largely driven by a post-pandemic recovery, with consumers resuming deferred purchases and an overall improvement in economic activities. Additionally, the implementation of government initiatives such as the Production Linked Incentive (PLI) scheme for the automotive sector provided significant support, incentivizing increased production and innovation. The introduction of new models with advanced features and the growing preference for electric vehicles (EVs) also played a crucial role. The improved availability of semiconductors, which had previously caused supply chain disruptions, ensured smoother production processes. Furthermore, the festive season sales also boosted consumer spending. As a result, passenger vehicle production rose from 4.02 million units in FY 2022-23 to 4.32 million units in FY 2023-24, marking a growth of approximately 7.5%. The two-wheeler segment also registered notable expansion. Two-wheeler production increased from 19.4 million units in FY 2022-23 to 21.4 million units in FY 2023-24, reflecting a growth rate of around 10%. This growth was driven by several factors. First, rural demand saw a significant rebound due to improved agricultural income and government schemes supporting rural development. Additionally, the urban market witnessed increased demand as offices and educational institutions resumed full operations post-pandemic, necessitating personal mobility solutions. The growing adoption of electric two-wheelers (E2Ws) contributed substantially, supported by government subsidies under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which made E2Ws more affordable. On a low base of 7.10 Lakh vehicles in FY 2022-23, E2Ws also registered a good growth of 32% during FY 2023-24 with 9.41 Lakh vehicles.

5 Year Production Data across Vehicle Categories at a Glance: Segment-wise automobile production trends of 5 Years (in ‘000)

Category	FY 2019-20	FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24
Passenger vehicles	3,424	3,062	3,651	4,579	4,902
Commercial vehicles	756	625	805	1,036	1,066
Three-Wheelers	1,133	611	758	856	993
Two-Wheelers	21,032	18,350	17,715	19,459	21,469
Total	26,345	22,648	22,929	25,930	28,430

OUTLOOK, OPPORTUNITIES AND THREATS:

The Automobile Industry forms a vital part of the overall manufacturing industry and constitutes a significant part of the economy. With increasing demand for personal mobility and a resurgence in economic activities, vehicle sales are projected to rise substantially. The push towards electric vehicles (EVs) is also gaining momentum, supported by government incentives and an expanding EV infrastructure.

Indian Two-Wheeler Industry: Outlook

The Indian two-wheeler industry is a crucial component of the countrys automotive sector, playing a significant role in the mobility of millions of people. With the rising demand for personal transportation, economic growth, and urbanization, the two-wheeler market has been expanding rapidly. In recent years, the industry has seen a notable shift towards electric two-wheelers (E2Ws), driven by environmental concerns, technological advancements, and supportive government policies.

Growth Drivers:

1. Rural Demand

The rural market has been a significant contributor to the growth of the two-wheeler industry. Government initiatives aimed at improving rural infrastructure and boosting agricultural incomes have increased the purchasing power of rural consumers, leading to higher demand for two-wheelers.

2. Rising Disposable Incomes and Urbanization

Increasing disposable incomes and urbanization are primary drivers of growth in the two-wheeler market. As more people move to urban areas for better job opportunities, the demand for affordable and convenient transportation options like two-wheelers rises.

3. Preference for Personal Mobility

The COVID-19 pandemic has heightened the preference for personal mobility, as people seek to avoid crowded public transportation. This trend has led to a surge in two-wheeler sales.

4. Technological Advancements

Technological advancements, including the development of fuel-e_cient engines and innovative designs, have made two-wheelers more attractive to consumers. The introduction of electric two-wheelers (E2W), in particular, has added a new dimension to the industry.

5. Growth of the E2W Segment

The electric two-wheeler segment in India is experiencing rapid growth, driven by several factors, like: Environmental Concerns: Increasing awareness about environmental sustainability and the need to reduce air pollution have spurred interest in electric vehicles (EVs), including E2Ws.

Government Support: The Indian government has introduced various policies and subsidy schemes to promote the adoption of electric vehicles. These initiatives aim to make E2Ws more affordable and accessible to the general public like FAME II Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) is a major government initiative that provides subsidies for all Electric Vehicle categories, including electric two-wheelers based on their battery capacity. This scheme significantly reduces the upfront cost of E2Ws for consumers.

State-Level Incentives: In addition to central government schemes, various states offer additional incentives such as tax exemptions, registration fee waivers, and further subsidies to encourage the adoption of electric vehicles.

Despite the positive outlook, the E2W industry faces the following challenge: Charging Infrastructure: The lack of adequate charging infrastructure for electric vehicles remains a significant barrier to the widespread adoption of E2Ws. However, many positive developments and actions happening to build a robust Charging Infrastructure with a supportive govt. policies and partnerships by the private sector.

Looking forward, the Indian Two-Wheeler industry is on a strong growth path, driven by rising incomes, urbanization, and a shift towards personal mobility. The electric two-wheeler segment, supported by government subsidies and technological advancements, is set to play a pivotal role in the future of the industry. While challenges remain, the overall outlook is positive, with significant growth prospects for both conventional and electric two-wheelers. By addressing infrastructure gaps and continuing to support innovation, India can solidify its position as a global leader in the two-wheeler market, ensuring sustainable and inclusive growth for the years to come.

ON AN OVERALL BASIS, SOME OF THE LONG-TERM GROWTH DRIVERS FOR THE AUTOMOTIVE AND AUTO-COMPONENT INDUSTRIES ARE: India as Global Components Sourcing Hub: Supportive Ecosystem

• Major global OEMs have made India a component sourcing hub for their global operations.

• Several global Tier-I suppliers have also announced plans to increase procurement from their Indian subsidiaries.

• India is also emerging as a sourcing hub for engine components with OEMs increasingly setting up engine manufacturing units in the country.

• Robust growth in the Domestic Automotive Industry.

• With the Self-Reliant India Mission, the Auto Industry is looking to half its Rs. 1 trillion (US$ 13.6 billion) worth of auto component imports over the next 4-5 years. This will provide significant opportunities for existing and new auto components players to scale up.

New Strategies and Supportive Government Policy Framework

• Production Linked Incentive (PLI) Schemes for 14 key sectors have been announced with an outlay of US$ 23.84 billion (Rs. 1.97 lakh crore) to enhance Indias Manufacturing capabilities and Exports.

• The Indian government is exempting imports of capital goods and machinery essential for the production of lithium-ion cells used in EV batteries from customs duty.

• Both Indian & global manufacturers are investing in new capacities and newer programs to get long-term advantages.

[Source: IBEF, March 2024 release on Auto Components]

FINANCIAL AND OPERATIONAL PERFORMANCE REVIEW

The company is one of the leading manufacturers of a wide range of Automotive Lighting, Signalling equipment, Rear View Mirrors, Sheet Metal, and Plastic Moulded Parts in India and added Canister and Bank Angle Sensors under technical collaboration. The company is a preferred Tier-1 supplier for Automotive Lighting and Rear View Mirrors and caters to esteemed OEMs not only in India but also in foreign countries like Japan, Europe, Asia, USA, etc. The Company supplies Automotive Lighting and Rear-View Mirrors to Passenger vehicles, Commercial Vehicles, off-highway, and Tractor segments. However, the Companys major business comes from the Two-wheeler Industry including fast emerging Electric 2-wheeler segment (Electric-2W). The Companys R&D Centre in India is recognized by DSIR, Ministry of Science & Technology, Govt. of India. Further, the Companys Design Centre in Italy is equipped with state-of-the-art software and testing facilities with highly experienced designers. As a preferred supplier for Two-wheeler Automotive Lighting, the Company offers a full range of Automotive Lighting products with cutting-edge technology & design solutions. Company has 9 state-of-the-art manufacturing facilities spread in major auto hubs in India and located at Kundli, Sonepat, Haryana (Unit-1), Hosur, Tamil Nadu (Unit-2, 3 & 5), Mysore, Karnataka (Unit-4), Nalagarh, Himachal Pradesh (Unit-6), Rai, Sonepat, Haryana (Unit-7), Tapukara, Rajasthan (Unit-8) and Karsan Pura, Ahmedabad, Gujarat (Unit-9). As a Company, we have taken a very strong stride in the EV space and already working with all major EV-OEMs and adding more and more EV-OEMs to our customer list. The company strongly believes that the Two-wheeler Industry will transform itself into Electric-2W at a fast pace and will emerge as a sustainable and green mobility solution in time to come. Though there may be short-term problems, in the mid to long-term the Electric-2W will be the future of the two-wheeler Industry. As the Companys products i.e. Automotive Lighting and Rear-View Mirrors etc. are essential for both EVs and ICE (Internal Combustion Engine) Two-wheelers, hence Company is taking the conversion towards EVs with a very positive approach.

The company is committed to offering advanced design solutions and the adoption of state-of-the-art technologies with a lean manufacturing process to deliver world-class quality products for Automobiles to make driving safer. With the continuing growth in the automotive segment, the company has further invested in the R&D facilities at Fiem Research & Technology S.r.l. in Italy, Japan, and India, to further strengthen the Electronics Department along with Testing and Validation facilities. With a dominant presence in two-wheelers, the Company is focussing on Passenger Vehicles, Commercial Vehicles, and off-highway vehicles and has expanded with a new Design Office in Pune to achieve the goal and diligently working on the latest technologies, Laser Lighting, Metamaterials, and Plasmonics. The Company has also diversified into EV-specific products like Hub-Motor Assembly & Motor Controller Unit (MCU) to strengthen its presence in the EV market along with Automotive Lighting, Rear View Mirrors, Plastic Parts, Sheet Metal Parts, etc. The company has also installed the latest Photometric Testing facilities in all its factories and other test equipment like Electrodynamic Vibration Shaker, Weiss-Climate Test Chamber, etc., and is planning to set up EMC/EMI testing facilities to strengthen Electronic R&D, Testing, and Validation of Designs and Products.

Way-ahead

The integration of advanced lighting technologies in passenger cars, such as LED lamps, Ambient Lighting, and Laser Lighting, is transforming the automotive industry. These innovations enhance safety, improve aesthetics, and contribute to a more comfortable driving experience. Coupled with our frugal manufacturing practices, we aim to integrate these technologies as a gateway for our Passenger Vehicle segment, making the lighting technology more accessible, and paving the way for a future where advanced lighting is a standard feature in all vehicles.

FINANCIAL PERFORMANCE

In line with industry performance, the Companys financial performance highlights are as under:

(i) Automotive Lighting and Signalling Equipments:

Contribution to revenues (Net) over the past years has remained as under (Rs. Crore):

FY2019-20	FY2020-21	FY2021-22	FY2022-23	FY2023-24
910	798	1048	1313	1449

The company manufactures a large range of LED and conventional Head Lamps, Tail Lamps, Blinker Lamps, Fog Lamps, Warning Triangles, and Interior Lamps, among others, for two, three, and four-wheelers.

Lighting is one of the most important systems of a vehicle from the perspective of safety, functionality as well as aesthetics. It is critical to the safety of vehicle occupants and that of other road users. The innovation in Automotive Lighting is an ever-evolving process and is currently witnessing a fast adoption of LED. In comparison to conventional bulbs, LED Lighting offers unlimited possibilities for designing and development from safety, functionality as well as aesthetic perspective.

(ii) Rear View Mirrors (RVM):

Contribution to revenues (Net) over the past years has remained as under (Rs. Crore):

FY2019-20	FY2020-21	FY2021-22	FY2022-23	FY2023-24
151	146	176	210	240

The Companys second highest-selling product category is Rear View Mirror, which is being supplied to almost all OEM customers of the Company, and for some of our valued OEM customers, we are the sole supplier for their Rear-View Mirror requirements. The Company has state-of-the-art mirror manufacturing plants across four units where plate making, profile cutting, washing, grinding, cleaning, coating (aluminium or chrome), and painting are carried out. The Company has installed injection moulding machines and rod-making facilities in-house. All the sub-components are accumulated in the assembly lines to complete the entire process of assembling and testing under one roof.

(iii) Plastic Moulded Parts:

Contribution to revenues (Net) over the past years has remained as under (Rs. Crore):

FY2019-20	FY2020-21	FY2021-22	FY2022-23	FY2023-24
148	114	156	203	217

Apart from manufacturing moulded parts for Automotive Lighting and Signalling Equipments and Rear-View Mirrors, the Company also manufactures and supplies standalone plastic parts as finished parts for Two-wheelers, like Front Fenders, Floor Panels, Side Covers, Rear Fenders, Handlebars, Seat Bases, and many others. The Company has installed best-in-class injection moulding machines across its 9 plants ranging from 50 tonnages to 1,400 tonnages, capable of making parts weighing 20 grams to 2.5 kilograms.

(iv) Others:

Contribution to revenues (Net) over the past years has remained as under (Rs. Crore):

FY2019-20	FY2020-21	FY 2021-22	FY2022-23	FY2023-24
137	137	170	101	100

These are all other items contributing individually less than 10% to the Companys revenue pie and mainly include fabricated items like sheet metal parts, canisters, bank angle sensors, moulds, etc. The company has full-fledged sheet metal fabrication facilities as well as mudguard rolling plants for manufacturing front and rear mudguards for motorcycles and mopeds.

RISKS AND CONCERNS

Risk management is a crucial function given the dynamic business environment in which the Company operates. Continuous focus on risk management across all functions and operations ensures that risk mitigation strategies are implemented promptly to minimize the adverse effects of emerging risks.

Under our risk management framework, the Company considers external and internal risks to devise effective mitigation strategies. Periodic risk identification, analysis, mitigation, and monitoring are conducted by the Management and overseen by the Risk Management Committee (RMC). Post-assessment, detailed mitigation plans are developed and implemented, with regular reporting to the RMC of the Board. The RMC continuously monitors and refines the risk management framework, ensuring its robustness and relevance.

Several senior management team members are actively involved in the process, emphasizing a collaborative approach to risk management. The risk management framework encompasses a wide range of risks, including Cybersecurity Risks (protecting against data breaches and cyber-attacks, especially given the increasing digitalization of manufacturing processes), Natural Calamities (preparedness for events like earthquakes, floods, and other disasters that could disrupt production facilities), Safety & Security of Assets (protecting company assets from fire, theft, damage, and accidents, ensuring a safe working environment for employees), etc. Our focus remains on agility, innovation, and proactive risk mitigation strategies. This approach ensures that the Company remains resilient and adaptable, safeguarding our interests and those of our stakeholders.

HUMAN RESOURCES

In the realm of human resources development, we place special emphasis on employee well-being, performance management, and leadership development. Our approach includes nurturing internal talent and bringing in key external talent for leadership roles.

With these efforts, we have built a strong, high-performing team. Management is dedicated to supporting key talent and resources, enhancing their skills, and improving overall efficiency and productivity. Our performance management system effectively rewards high performers and encourages all employees to excel.

Human resources development focuses on diversity and inclusion and prioritizes learning and development through comprehensive training programs. We are committed to nurturing, enhancing, and retaining talent through superior learning and organizational development initiatives. Our training programs include Fire & Safety, 5S, 7QC Tools, TQM, Environment Awareness, Emergency Plan, PDCA, KAIZEN, CSR awareness, and various other topics, all designed to hone the skills of our employees.

In addition to training, we emphasize manufacturing excellence. Our employees are trained in best practices and industry standards to ensure we maintain high product quality and maximize output. We have implemented robust quality control measures and continuous improvement initiatives to meet and exceed customer expectations consistently.

Timely delivery to customers is a critical aspect of our operations. Our teams are trained to work efficiently and effectively, ensuring that production schedules are met and products are delivered on time. This commitment to timely delivery helps us maintain strong relationships with our customers and enhances our reputation in the market. We remained focused on maintaining product quality. Our quality control teams are highly skilled and work diligently to ensure that every product meets our stringent quality standards. This focus on quality helps us deliver products that meet and exceed customer expectations, reinforcing our position as a leading automotive lighting manufacturer. By prioritizing employee well-being, skill development, and manufacturing excellence, we can maximize output and maintain high standards of product quality and customer satisfaction. Our commitment to these principles ensures the ongoing success and growth of the Company.

The Company encourages employees to maintain a healthy work-life balance and has introduced progressive policies and programs to support this. During the year under review, industrial relations remained cordial across our factories and offices.

At the close of the financial year under review, we had 2,425 employees and workers on the rolls of the Company. In addition, we engage contractual workers, and more than one-third of our workforce is female. Our commitment to diversity and inclusion strengthens our team and contributes to our success.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Companys internal control system comprises the policies, procedures, and practices established to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency. Adequate internal controls are essential for mitigating risks, preventing fraud, and maintaining transparency, which are crucial for the long-term success and growth of the Company and for safeguarding the interests of all stakeholders.

Our internal control measures include the segregation of duties, proper authorization and approval processes, and regular monitoring and review of financial transactions. These measures ensure that all transactions are authorized, recorded accurately, and compliant with laws and regulations.

The adequacy of our internal control system is periodically assessed and analyzed by both statutory and internal auditors, with regular monitoring by the management and the Audit Committee. These assessments have consistently found the internal control systems of the Company to be adequate and effective, given the size and scale of operations, industry regulations, and the complexity of our manufacturing processes.

Key components of our internal control system include:

• Segregation of Duties: Ensuring that responsibilities are divided among different individuals to reduce the risk of errors or fraud.

• Authorization and Approval Processes: Establishing clear protocols for the authorization of transactions and activities.

• Regular Monitoring and Review: Conducting ongoing reviews of financial transactions and operational processes to identify and address any discrepancies.

• Statutory and Internal Audits: Regular audits by external and internal auditors to assess the effectiveness of internal controls and recommend improvements.

• Audit Committee Oversight: The Audit Committee oversees the internal control framework, ensuring its adequacy and effectiveness.

Regular assessments and periodic evaluations are necessary to identify weaknesses, address gaps, and ensure continuous improvement in the internal control framework. Management strongly believes that a robust and well-designed internal control system enhances the organizations ability to manage risks, protect its resources, and maintain the trust of stakeholders. Internal financial controls have been operating effectively throughout the year.

Cautionary Statement

Statements/information in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and growth expectations may be ‘forward-looking within the meaning of applicable laws and regulations. Actual results may substantially differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic and political, changes in Government regulations, tax regimes, economic developments, and various other internal and incidental factors. The company does not undertake to update any forward-looking statements to reflect future events or circumstances. Investors are advised to exercise due care and caution while interpreting these statements. Further, various Industry and economic data used in this report are taken from public sources and the accuracy of such data cannot be verified or assured.