siti cable network ltd Management discussions

ECONOMIC REVIEW

Indian Economic Review

India continues to be among the fastest growing economies in the world and emerged as the shining beacon in a grim global scenario. The Indian economy continues to show resilience despite external exogenous shocks. Indias real GDP growth is pegged at 7.2% in FY 2022-23 as against 9.1% in FY 2021-22. Domestic economic growth is gaining strength and further traction in 2023. According to the IMF, Indias GDP per capita at current prices is US$ 2,600 in 2023, leading to a surge in household consumption, boosting the demand for goods and services across industries. Higher inflation remains a challenge and the Reserve Bank of India (RBI) has tried to cushion the economy from higher inflation and increased the repo rate by 250 basis points in FY 2022-23. As a result, retail inflation eased to 4.7% and the wholesale price index (WPI) inflation fell to -0.92% in April 2023 amid lower food and fuel costs. Further, the RBI approved international trade settlements in Indian Rupees () to promote the growth of global trade with an emphasis on exports from India and to support the increasing interest of the global trading community.

Quarterly GDP Growth (%)

TRADINGECONOMIC.COM : MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION _MOSPI_

Source: Trading Economics

Indias IIP growth of 5.1% in FY 2022-23 shows modest growth in the industrial sector. The combined growth rate of ICI (Index of Eight Core Industries) during FY 2022-23 was 7.7% (provisional) compared to the corresponding period of last year. Further, the gross Goods and Services Tax (GST) revenue collection in May 2023 was 1.57 trillion, with 12% Y-o-Y growth.

Despite the weak external demand, international trade contributed significantly to economic growth in FY 2022-23. The Annual merchandise exports were the highest-ever at US$ 447.46 billion with 6.03% growth during FY 2022-23 surpassing the previous years record exports of US$ 422.00 billion. Further, the services sector witnessed a swift rebound in FY 2022-23, growing Y-o-Y at 8.4% compared to a contraction of 7.8% in the previous financial year, bolstered by the release of pent-up demand, ease of mobility restriction and near-universal vaccination coverage.

Outlook

As per the IMF, the Indian economy is expected to grow at 6.3% in FY 2024-25 after registering around 5.9% growth in FY 2023-24. Growth will be supported by a conducive domestic policy environment, driven by higher capital expenditure, the governments thrust on domestic manufacturing and infrastructure development, strong domestic consumption, technology-enabled development, revival in credit growth, and energy transition among others. In the Union Budget 2023-24, the government has envisaged 10 lakh crore for the development of the infrastructure sector, which will accelerate economic growth. In addition, growth-enhancing policies such as the production-linked incentives (PLI) scheme, Atmanirbhar Bharat and ‘Make in India are focussed on attracting foreign investment, boosting manufacturing and enhancing the countrys overall competitiveness. Further, with the rapid urbanisation, demand for housing, real estate and automobiles will see an upswing in tune with the rising aspirations of the populace. Despite the challenging global environment, the Indian economy with its strong fundamentals and massive demographic strengths seems en route to outpace other large economies.

INDUSTRY REVIEW

Media & Entertainment Industry

The Indian Media & Entertainment (M&E) sector continued its strong growth trajectory. The industry has redefined itself in recent times fuelled by the growth of digital infrastructure, digital media adoption and digital assets. The sector grew 20% to reach 2.1 trillion in 2022, which is 10% more than its pre-pandemic levels in 2019.

	2019	2020	2021	2022	2023E	2025E	CAGR 2022 - 2025
Television	787	685	720	709	727	796	3.9%
Digital Media	308	326	439	571	671	862	14.7%
Print	296	190	227	250	262	279	3.7%
Filmed entertainment	191	72	93	172	194	228	9.8%
Online gaming	65	79	101	135	167	231	19.5%
Animation and VFX	95	53	83	107	133	190	21.1%
Live events	83	27	32	73	95	134	22.2%
Out of Home media	39	16	20	37	41	53	12.8%
Music	15	15	19	22	25	33	14.7%
Radio	31	14	16	21	22	26	7.5%
Total	1,910	1,476	1,750	2,098	2,339	2,832	10.5%
Growth		-23.2%	19.3%	19.9%	11.5%

Source: FICCI-EY - M&E Report, ‘Windows of opportunity (April 2023)

The share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 58% of the M&E sectors revenues in 2022 compared to 68% in 2021 and down from 71% in 2019. This is primarily due to the penetration of smartphones and 4G connectivity, which enabled people to consume all kinds of content, including films, sports, news, music and more via OTT, YouTube, Instagram, Facebook, Twitter, etc. India is spending 82% of its time on mobile phone apps for media and entertainment.

Television (TV) Industry

According to the FICCI-EY- M&E Report, ‘Windows of opportunity (April 2023), the Television segment retained its market size as the largest segment and grew 10% in 2022. However, the time spent on TV decreased 7% in 2022 over 2021 as people went back to work. The sports segment makes up a key part of content spend by Linear TV and witnessed 6% growth in viewer ship on television.

At the other end of the cost spectrum, connected smart television sets continued their explosive growth. Smart TV sets increased to 25 million though only 8 to 10 million connected to the internet daily. The number of television channels reduced marginally to 885 as in September 2022 from 906 in September 2021. Pay channels increased by 5, while free-to-air (FTA) channels reduced by 26, which reflects a move by broadcasters to convert FTA channels into pay to build stronger subscription revenue products.

Television advertising grew 2% in 2022 just behind its 2019 levels, on the back of volume growth. Television subscription revenue continued to fall for the third year in a row, experiencing a de-growth of 4% in 2022 due to a reduction in the paid subscriber base by around 5 million television homes and stagnant consumer-end ARPUs as channel pricing was not increased during the year.

	2019	2020	2021	2022
Advertising	320	251	313	318
Distribution	468	434	407	392
Total	788	685	720	710

billion (gross of taxes) : EY analysis

Source: FICCI-EY- M&E Report, ‘Windows of opportunity (April 2023)

According to the FICCI-EY report, the number of distribution platforms remained stable. MSO registrations remained constant at 1,747 in 2022. End-customer prices remained stable at an average of 223 per month (net of taxes), given that regulations prohibited pricing changes for a large part of the year. Most consumers opted for packs created by the DPOs and LCOs with minimal customisation, however, periods of temporarily suspended connections increased marginally as alternate and even free entertainment options were available on mobile phones, which reduced the need to recharge in a timely manner.

	Dec 2020	Dec 2021	Dec 2022
MSO	1,702	1,747	1,747
DTH	5	5	5
HITS	1	1	1

MIB Website

Looking ahead, television revenue is projected to grow to _ 796 billion and television advertising to grow at a CAGR of 5.3% to reach 371 billion by 2025. Subscription revenue is forecasted to grow at 2.7% CAGR to reach 425 billion by 2025. The growth of overall television households shall be driven by connected TVs which is expected to cross 40 million and free television is expected to cross 50 million by 2025. Total television screens (linear and bi-directional) are expected to reach 206 million by 2025. Population growth, improved electrification in rural areas and gradual easement of inflation, which will lead to reduced prices of television sets, subscriptions and advertising will contribute to the growth of the television segment.

Cable and Satellite

As people rely more than ever on fast internet connectivity for work, school and entertainment, cable companies are achieving record results from their high-speed data offerings. Digital media consumption is growing and cable networks and streaming platforms are aiding the transformation. They play a crucial role in distributing content across platforms, its effective consumption and monetisation.

	2020	2021	2022
Cable*	72	68	64
DTH*	56	55	54
HITS*	2	2	2
Free TV**	40	43	45
Total	170	168	165

Source: FICCI-EY- M&E Report, ‘Windows of opportunity (April 2023)

According to the FICCI-EY report, active paid subscriptions continued to reduce in 2022. While HITS remained relatively stable, DTH saw a decline of 1 million homes and cable lost 4 million homes. The fall in paid subscriptions is attributed to factors such as the rising popularity of OTT platforms, YouTube, free TV and digital streaming, including social media, short video and gaming platforms and some number of subscribers moving consumption to connected TVs.

Free television continued to grow its base to reach an estimated 45 million subscribers on the back of less-expensive television sets, economic issues and the addition of new channels to the platform. Further, connected smart TV sets are expected to reach 40 million by 2025, given the imminent large-scale rollout of 5G services in India and the continued growth of wired broadband.

Broadband

The Telecom industry in India is the second largest in the world with a subscriber base of 1,172.84 million and 84.51% increase in the overall teledensity (wireless & wireline) at the end of March 2023. The number of broadband subscribers increased from 839.33 million at the end of February 2023 to 846.57 million at the end of March 2023 with a monthly growth rate of 0.86%. The number of wired subscribers was 33.49 million at the end of March 2023 while the number of people accessing the internet via mobile devices (phones and dongles) was 811.99 million at the end of March 2023. According to FICCI-EY-M&E Report, currently, less than one in ten Indian households have a wired broadband connection. Some of the factors that will drive this growth in the future are the trend of work-from-home and hybrid working models. 96% of those accessing the internet used broadband, of which 4% used wired broadband and the rest used wireless services.

Increase in Internet penetration

Internet subscriptions (In millions)	Dec 2020	Dec 2021	Dec 2022E
Narrow band (a)	48	37	34
Broadband (b)	747	792	832
Urban (a)	482	496	516
Rural (b)	313	333	350
Total (a+b)	795	829	866

Source: TRAI, EY estimates

India is among the nations that had the lowest data charges in the world. Indias low data prices is the key reason for the growing telecom internet user base and consequently, the growth being witnessed across online entertainment, audio streaming, gaming, social media, etc. Telecom operators and internet service providers in the country are making rapid progress in upgrading their networks and services. Increasing capex by telecom players and the governments spending on 5G will drive the demand for optical fibre cables.

A report from Point Topic, a US-based analyst, suggests that India will see rapid growth in fibre broadband subscribers by the end of this decade. Indias fibre broadband subscriber count is expected to reach 110 million by 2030.

Regulatory Update

The Union Budget 2023-24

The Budget envisages an allocation of 97,579 crore, an increase of 19% over the revised estimates of FY 2022-23 to the Department of Telecommunications (DOT) under the Ministry of Communications. Further, the Centre for Development of Telematics, the research and development arm of the telecom department, has been allocated 550 crore, an increase of 50 crore from the previous budget.

The Budget proposes to set up 3 centres of excellence for artificial intelligence (AI) in top educational institutions and 100 labs across the country for developing 5G applications for various verticals such as smart classrooms, precision farming, intelligent transport systems and healthcare. _The 3 centres of excellence for Artificial Intelligence (AI) will boost innovation in the M&E sector. The Budget also announced 2.5% reduction of customs duty to promote value addition in TV manufacturing.

NTO 3.0

Under new amendments to the tariff order, NTO 3.0, broadcasters were allowed by the Telecom Regulatory Authority of India (TRAI) to hike the price of channels that are part of a bouquet to_ 19 from_ 12 earlier. TRAIs 2017 regulations brought in a separate charge of NCF which DPOs charge and collect from the subscribers for provisioning access to the TV services. The price hike during implementation is largely due to the demand of the increase in the NCF by the DPOs and not at the back of the channel prices. While no pay TV channel is provided against the said charge, the burden of this cost ultimately results in making the TV services expensive for the subscribers. All MSOs have increased their package price.

National Monetisation Pipeline (NMP)

National Monetisation Pipeline (NMP) was launched to monetise the existing public assets by leasing them to private operators for predetermined periods. The estimated aggregate monetisation potential under NMP is 6 trillion through core assets of the Central Government, over a four-year period, from FY2020 to FY2025. According to NITI Aayog, the government has monetised assets worth 26,000 crore during FY 2022-23 against the target of 1.6 lakh crore.

Telecom is one of the top five sectors (by estimated value of 351 billion) accounting for ~6% of the total NMP target. According to National Monetisation Pipeline Report (Volume II), the assets of ~2.86 lakh km of Bharatnet Fibre under the Bharat Broadband Network Limited (BBNL) and 14,917 towers of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have been considered for monetisation in FY2023. Further, the Department of Telecommunications (DoT) has asked state-owned telecom operators Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to identify core and non-core assets with values of up to 10 crore for monetisation.

Phasing of monetisation value – Telecom Assets

(_Crore)

Asset type	FY 23	FY 24	FY 25	Total
Bharatnet Fibre	15,780	10,520	_0	26,300
BSNL & MTNL Tower assets	4,400	4,400	_0	8,800

Source:National Monetisation Pipeline Report (Volume II)

Foreign Direct Investment (FDI) policy initiatives

100% FDI_ is allowed through the_ automatic route for the telecommunications sector, in teleports, DTH, cable networks, mobile TV, head-in-the sky broadcasting service and cable networks. The telecommunications sector is the 3rd largest sector in terms of FDI inflows, contributing 6.43% of total FDI inflow, and contributes directly to 2.2 million employment and indirectly to 1.8 million jobs. In the telecom sector, the FDI equity inflows at US$ 0.70 billion during April to December FY 2022-23 were higher than the previous year. Further, FDI equity inflows in the information and broadcasting sector at US$ 0.37 billion from April to December FY 2022-23 were more than double the level achieved in the previous year.

Industry Outlook

The FICCI-EY report expects the Indian M&E sector to grow at a CAGR of 10.5% to reach 2.83 trillion by 2025. It envisages that the key contributors to this growth will be digital, online gaming and television (together contributing to 65% of the growth), followed by animation and VFX (11%), live events (8%) and films (8%). Further, the hyper-adoption of a digital ecosystem and investment in high-quality content delivery with the rollout of 5G will propel the growth of the sector. The report estimates that 5G is likely to add 400+ billion to the Indian M&E sector within three years.

COMPANY OVERVIEW

SITI Networks Limited (the Company) operates Indias leading digital TV network. SITI Networks is one of Indias largest Multi System Operator (MSO) with 15 digital head ends and a network of over 33,000 km of optical fibre and coaxial cable, 1.2 Gbps links for pan-India transport to carry digital TV signals and over 24,000 LCO partners across India. It provides its cable services in ~800 locations, across 249 districts in 20+ states and UT in India. It has 500 IP points and serves a massive customer base of over 45 million active customers.

The Company deploys state-of-the-art technology for delivering multiple TV signals to enhance the consumer-viewing experience. Its product range includes Digital & Analogue Cable Television, Broadband and Local Television Channels and Electronic Programming. It also provides services including OTT and high-speed gaming-ready services, IoT Ready Networks with security camera and surveillance services and business solutions in the ILP and ILL domains.

Operational Performance

The Companys key operational highlights during FY 2022-23 are mentioned below:

Cable–As per TRAIs new regulation and implementation of new tariff order – NTO 3.0, we have implemented a new rate of broadcaster bouquet and channels effective from April 1, 2023 after signing RIO agreements with all broadcasters like Star India, Zee Entertainment, Sony Pictures, India Cast, SUN TV, ETV and others.

WATCHO – The Company introduced an OTT service platform "WATCHO" in September 2022 with the tagline "Watcho One Hai to Done Hai. We have offered a bundle plan to our Cable and Broadband customers wherein customers have enjoyed 11 OTT applications like Zee5, Disney + hotstar, Watcho, Sony Liv, Hoichoi, Klikk, Chaupal, Lionsgate Play, Epic On, Hungama Play and Oho Gujarati. The total subscription of WATCHO is 4 m illion in FY 2022-23. We have sold coupons under 4 plans – Mirchi, Masti, Dhamaal and Max.

Broadband –The Company is moving rapidly towards expanding its presence in the Broadband space and achieved the highest base growth since its inception. SITI Broadband witnessed 20% growth over last year and ~80% in a span of 4 years from FY2020 to FY2023. SITI Broadband expanded its operations in 73 cities/ towns across the country. It introduced broadband plans bundled with Watcho (OTT Platform) to address the customer shift and inclination towards OTT and digital streaming. The total active base stands at 2.85 lakhs as on March 31, 2023. The Company increased its Broadband footprint in 44 towns in Rajasthan, Uttar Pradesh, Maharashtra and Haryana and added 17,000 new acquisitions in FY 2022-23.

SITI has crossed a 50,000 broadband customer landmark in Delhi with a total active subscriber base of 1,44,113 as on March 31, 2023. The Company targets to achieve the milestone of 1,00,000 in Delhi in the next two quarters. Moreover, SITI BB Maharashtra crossed 10,000 numbers and is launched in additional 2 cities. The Company also successfully launched a cost-effective variable sales model of LM (Line Man) and FL (Free Lancers). It successfully launched SITI Franchise model called BOE model in Q3 FY 2022-23. It added 5-6 cities under this model and many are in the pipeline.

New Integration – We launched a verified WhatsApp account to communicate with our customers and business partners (Cable & Broadband). Besides the launch of WhatsApp account, the Company strengthened customer communication through text SMS, CRM and partner-friendly applications like SITI MITRA application for our LCOs.

UBIATTENDANCE – We have started Attendance and Visit Tracking application for our sales team through a mobile app – UBIATTENDANCE. It is helpful to track and improve the productivity of Sales manpower. Visit tracking is being done along with a Selfie and GPS marker which will help in managing travel/conveyance claims through random audits.

Digital Campaign Lead Generation Program – We have started a Digital Campaign Lead Generation program to boost Broadband sales. We have started the "Mission 10K Lead" program and archived 8,938 leads during Q2, FY 2022-23. Our website traffic has increased by 23% through Facebook and Google after 22,000 the launch of this program. We recorded 9.52 million total impressions, 2.06 lakh total Clicks, 2.17% CTR and 26,000 Conversions. Per lead Cost is 45.96.

Experienced Management Team

The Companys leadership and management teams are constantly striving to improve operations and enhance consumer experiences, business sustainability, disciplined execution, operating efficiencies and cost optimisation. It also dedicatedly upholds SITIs core value system which includes prioritising customers, setting audacious goals, being frugal, showing respect, humility and integrity, targeting speed and agility, being accountable for results and promptly solving problems. It fosters a work environment that supports best business practices and high work ethos, by hiring professionals with the desired skill sets.

Compliance, Integrity and Work Ethics

SITI Networks bases all its business operations on a firm foundation of best-in-class industry standards of professionalism and compliance. It has always ensured high levels of compliance and ensures that its day-today operations are bound by ethics and a high level of transparency across processes and in dealings with all stakeholders. Moreover, it was one of the first MSOs to implement NTO-related compliances.

Risk Management and Mitigation

The Company has established systems and reporting structures in place as part of a comprehensive risk management framework for timely identification, evaluation and pre-emption of potential risks. The Company has robust mitigation strategies to overcome adverse situations which may arise on account of foreseeable risks. The key risks and their corresponding mitigation measures are depicted below:

Preference Risk: The ever-changing M&E industry is sensitive to any change in consumer preferences as more power is given to consumers. Hence, businesses in the industry must keep up with shifting preferences to pre-empt the loss of consumer interest.

Mitigation: The Company proactively innovates, upgrades and renews its offerings. It constantly strives to improve the quality of infotainment content to enhance consumer experience and grow their interest. Its focus on HD and OTT enables it to provide enriched subscriber experiences. Moreover, being an integrated player facilitates the Company to offer superlative broadband speed and striking data plans to the consumers to complement viewing experiences.

Awareness Risk: There is a constant need for the Company to conduct training for the Business Partners, the main growth drivers of the business.

Mitigation: The Company regularly collaborates with Business Partners to provide real-time training and branding know-how. It also provides them with subscriber management software to help them efficiently manage their subscribers, incentivise and motivate them and share the carriage fees with them. To ensure high brand recall, the Company undertakes an outreach programme for its broadband services and spreads awareness among subscribers about its offerings. Further, its services are offered on a customer-friendly platform that entails an intuitive mobile app, a responsive website and call centre support, with options to choose unique services or the entire FTTH Network for broadband and video.

Content Risk: It is crucial for the industry players to provide content from broadcasters that is mapped to consumer demand. This forms the basis of their ability to successfully attract and retain subscribers and maintain competitiveness and brand equity.

Mitigation: The Company enjoys access to the parent companys diverse portfolio of assets in media, entertainment, packaging, technology-enabled services, infrastructure development and education segments. The Company has also entered into agreements with all major broadcasters, which will enable it to offer consumers a wide range of offerings.

Talent and Technology Risk: Attracting and retaining skilled professionals is imperative for the Company to execute and expand its business frontiers. Moreover, there is a constant requirement for technology upgradation in an ever-changing environment. Failure to use the latest technologies to cater to the changing requirements of the market may lead to loss of business.

Mitigation: The Companys cable and broadband businesses employ highly skilled professionals at the top rung from multiple consumer-facing industries. Additionally, the sales team also has rich experience. The Company has a performance-linked culture to encourage its employees to be decisive and responsible. Further, the Company is fast moving towards becoming an integrated provider of the entire range of devices that comprise a Smart Network with its Future Ready Network Architecture.

Product Risk: With constant upgrades in available technology, there is a substantial risk arising from the migration of subscribers from traditional cable to content that is available in a non-linear fashion.

Mitigation: The Company is well prepared to adapt to the ever-changing environment and identified opportunities in OTT and broadband services for future growth. It is focussed on OTT and broadband services to keep delivering to the evolving subscriber needs. Further, its strong subscriber relationships and committed substantial investments in broadband services put the Company in a strong place to mitigate product-related risks.

Economic Risk: The geopolitical turmoil and global economic slowdown may directly and indirectly, impact all the sectors in India, which may lead to demand compression.

Mitigation: The Company has a robust Business Continuity Plan in place that not only covers its survival but that of its downstream business partners as well.

Human Resource Development

As a people-centric organisation, we reinforced the importance of creating a safe, inclusive and harmonious workplace for our employees. We continue to nurture a culture that values meritocracy and innovation and enables the growth and welfare of our employees. We have a Company-wide ethos of caring and sharing with our people and continue to invest in their learning and development on a regular basis. We also remain consistently focussed on being connected and engaged with our employees to keep them motivated and inspired, treating them as equal partners in our growth journey. During FY 2022-23, we undertook various initiatives to build on our HR culture and ensure the sustained welfare and well-being of our employees.

Rewards & Recognition

The Company believes that its people are its greatest assets and started Rewards & Recognition programmes across functions to motivate its employees by offering performance-based rewards and growth opportunities.

Enhancing Employee Connect

We conducted Monthly Townhalls as a forum for dialogue between Employees and the Management.

Leadership Meet

We organised Leadership Meet in September 2022. We also arranged Team Building activities for the employees and discussed the way forward.

Health and Well-being of the Workforce

Employee safety, health and well-being have always been one of our top priorities. We conducted regular health checkups for our employees through special camps. We also supported employees, diagnosed with medical issues.

Spreading Cheer

As part of our efforts to stay engaged with our people, we took care of the fun elements by celebrating major festivals and special occasions. These events engage a larger workforce and help spread cheer and happiness in their lives.

Womens Day Celebration – We believe that Womens Day is a special day to appreciate and show respect to all the women who are the essence of our lives. We celebrated it to honour the life, grit and determination of our women employees.

Lohri Celebration – We celebrated the harvest festival, Lohri. We organised a bonfire and celebrated the festival with various sweet delicacies.

Holi Celebration – We organised a grand office party to celebrate the colours of Holi. All employees played Holi in the office before leaving for their respective hometowns to celebrate the festival with their families.

Diwali Celebration – We celebrated the festival of light to spread the message of peace, prosperity, good fortune, glory and joy among our employees. To mark the occasion, we arranged for Green Rangoli decoration at our office.

Christmas Celebration – We celebrated the festive spirit of Christmas in the office by decorating the workplace, exchanging gifts among employees and fun activities.

Birthday Celebrations – Giving an employee special attention on their birthday makes them feel valued and recognised, and we have made it a practice to arrange for birthday celebrations of our people across departments.

Internal Control Systems

The Company maintains robust internal control systems to safeguard its assets and ensure efficient productivity commensurate with the size and industry in which it operates. The internal control mechanism ensures strict adherence to requisite laws and regulations and the accuracy of financial reporting and transaction reporting. Operational, financial and other areas covered by the Internal Audit are periodically monitored and reviewed by the Audit Committee of the Board. Any deviations from standards are corrected promptly and measures are taken to further strengthen the internal control framework.

CAUTIONARY STATEMENT

This Annual Report and other statements - written and oral, that we periodically make may contain "forward-looking statements" that set out anticipated results based on the managements plans and assumptions. We have disclosed forward-looking information to enable investors to comprehend our prospects and take investment decisions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate, ‘estimate, ‘expects, ‘projects, ‘intends, ‘plans, ‘believes, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in our assumptions. The achievements of results are subject to risks, uncertainties, and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results might differ substantially or materially from those implied, anticipated, estimated or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.