Teamo Productions HQ Ltd Management Discussions

Your Board of Directors is pleased to present the Management Discussion and Analysis Report covering the Companys business operations and performance for the financial year ended March 31, 2026.

The Company operates across a diversified portfolio comprising Media, Film Production & Distribution; Information Technology-based Engineering Services; Trading of Steel and Engineering Products for Infrastructure Projects; and dealing in shares. The Companys diversified business profile provides exposure to multiple sectors and market opportunities, each characterised by distinct growth drivers and operating dynamics.

The Companys business environment during FY 2025-26 was influenced by technological advancement, evolving consumer preferences, infrastructure and industrial development, competitive intensity and changing regulatory and economic conditions. Management continues to evaluate opportunities across its business verticals while maintaining focus on operational efficiency, prudent financial management and sustainable growth.

1. Industry Structure and Developments

The Companys principal business activities are spread across Media, Film Production & Distribution; Information Technology-based Engineering Services; Trading of Steel and Engineering Products for Infrastructure Projects; and dealing in shares. The industry environment relevant to these activities is discussed below.

Media, Film Production & Distribution

Indias Media & Entertainment ("M&E") industry has entered a phase of scale, digital transformation and changing consumption patterns. The industry is increasingly characterised by the convergence of theatrical, television, digital, streaming and other content formats, with consumers accessing content across multiple platforms and screens.

According to the FICCI-EY Media & Entertainment Report 2026, Indias M&E sector grew by approximately 9% in 2025 to ?2.78 trillion, supported primarily by digital media, advertising and live experiences. Digital media became the largest segment of the industry, crossing the ?1 trillion revenue mark for the first time. Digital advertising grew by approximately 26% to ?947 billion, accounting for around 63% of total advertising revenues.

The industry is therefore moving beyond a traditional film-and-television model towards a multi- platform content ecosystem, where content can be monetised through theatrical releases, streaming platforms, digital distribution, advertising, licensing and other ancillary channels.

Key Industry Indicators - Media & Entertainment

Particulars	2025	Industry Significance
Indian M&E industry size	Rs. 2.78 trillion	9% YoY growth
Digital media	Rs. 1 trillion+	Largest M&E segment
Digital advertising	Rs. 947 billion	26% YoY growth
Share of digital in advertising	63%	Continued shift towards digital
Live events	44% growth	Strong experiential consumption
M&E industry outlook	Rs. 3.3 trillion by 2028	>7% CAGR expected

Source: FICCI-EY, "Stories, Scale and Impact: Unlocking Indias Media & Entertainment Economy", March 2026.2025 figures are calendar-year industry data and2028 represents industry estimates.

Key Structural Developments

Digital-first consumption:

Increasing smartphone penetration, connected television adoption and growth in streaming platforms are changing how audiences discover, consume and engage with content.

Changing content economics:

Content monetisation is increasingly dependent on audience engagement, discoverability, distribution reach and the ability to develop sustainable revenue streams across multiple platforms.

Regional and differentiated content:

Growing demand for regional-language and differentiated content is expanding the addressable market for content producers and distributors.

Convergence of screens:

The distinction between theatrical, television and digital consumption is becoming less pronounced, creating opportunities for content to travel across multiple platforms.

Technology-enabled content creation:

AI, visual effects, digital production tools and data analytics are increasingly influencing content creation, marketing and audience targeting.

Information Technology-based Engineering Services

The Information Technology-based Engineering Services industry is evolving rapidly as enterprises increasingly integrate engineering capabilities with digital technologies to improve product development, process efficiency, asset performance and operational decision-making. The sector encompasses a broad range of technology-enabled engineering solutions and is increasingly supported by digital engineering, automation, artificial intelligence, cloud technologies, data analytics and connected systems.

The engineering services market is broadly segmented across engineering disciplines, delivery models, service offerings and end-use industries. From a discipline perspective, the market includes civil, mechanical, electrical, piping and structural engineering, while service offerings span product engineering, process engineering, automation-related services and asset-management-related services. Engineering services are delivered through both offshore and onsite models, depending upon the nature, complexity and location of customer requirements.

Engineering Services Market Structure

Market Dimension	Key Segments
Engineering Disciplines	Civil, Mechanical, Electrical, Piping & Structural
Delivery Models	Offshore, Onsite and Hybrid
Service Offerings	Product Engineering, Process Engineering, Automation-related Services, Asset Management-related Services
Technology Enablers	Artificial Intelligence, Cloud Computing, Data Analytics, loT, Automation and Digital Twins
End-use Industries	Aerospace & Defence, Automotive, Chemical & Petrochemical, Electric Power Generation, Municipal Utilities, Mining, Oil & Gas, Pharmaceuticals, Transportation, Telecommunications and Nuclear Projects

Key Industry Developments

Digital Transformation and Engineering Convergence

Engineering services are increasingly converging with information technology, resulting in the emergence of digital engineering as an important growth area. Customers are increasingly looking for integrated solutions that combine engineering expertise with software, analytics, automation and digital platforms.

This convergence enables organisations to improve product design, shorten development cycles, optimise manufacturing and engineering processes and improve the performance and reliability of physical assets.

Artificial Intelligence and Automation

The increasing adoption of Artificial Intelligence ("Al"), machine learning and automation is changing the engineering services landscape. AI-enabled engineering tools can support design optimisation, predictive maintenance, simulation, quality control and process automation.

The adoption of these technologies is expected to create opportunities for engineering service providers with the ability to combine domain expertise with technology capabilities.

Growth of Product Engineering

Product engineering is becoming increasingly important as companies seek to accelerate product innovation, improve product quality and reduce development timelines. Engineering service providers are increasingly involved across the product lifecycle, from concept and design to testing, validation, deployment and lifecycle management.

Asset Management and Predictive Maintenance

Industrial organisations are increasingly adopting technology-enabled asset-management solutions to improve asset utilisation, minimise downtime and extend asset life. Data analytics, IoT-enabled monitoring and predictive maintenance solutions are contributing to the development of this segment.

Offshore Delivery Model

The offshore delivery model continues to provide customers with access to specialised engineering talent while enabling optimisation of development and operating costs. Indias established technology ecosystem, skilled technical workforce and global delivery capabilities provide a supportive environment for the continued development of engineering services.

Trading of Steel and Engineering Products for Infrastructure Projects

The Companys trading business primarily comprises steel and engineering products used in infrastructure, construction and industrial projects, including TMT bars, girders, hollow sections, steel pipes and tubes and other related engineering products. The business is closely linked to the pace of infrastructure development, construction activity, urbanisation, industrial expansion and capital expenditure in India.

The Indian steel and infrastructure ecosystem continues to benefit from increased public and private investment in roads, railways, urban infrastructure, industrial facilities, power, logistics and other capital-intensive projects. This creates sustained demand for structural steel and other steel-based products used in construction and infrastructure applications.

Industry Structure

The market for steel and engineering products used in infrastructure projects comprises a wide range of products serving different construction and industrial requirements.

Product Category	Typical Application
TMT Bars	Reinforced concrete structures, buildings, bridges, roads and other civil infrastructure
Girders / Structural Sections	Bridges, industrial structures, warehouses and large infrastructure projects
Hollow Sections	Structural frameworks, buildings, industrial facilities and fabrication
Steel Pipes & Tubes	Water supply, infrastructure, construction, industrial and utility applications
Other Steel Products	Fabrication, construction, industrial and infrastructure applications

The demand environment for these products is influenced by infrastructure spending, construction activity, industrial production, real-estate development, government capital expenditure and private-sector investment.

Key Industry Developments

Infrastructure-led Demand

Infrastructure development remains one of the key drivers of steel consumption in India. Continued investments in roads, highways, railways, metro systems, airports, ports, urban infrastructure, power and logistics infrastructure support demand for structural steel, reinforcement bars, pipes and other steel products.

Indias continued focus on infrastructure development and capital expenditure provides a favourable demand environment for steel products used in construction and infrastructure projects.

Growth in Construction Activity

Expansion of residential, commercial and industrial construction contributes significantly to demand for TMT bars, structural sections, hollow sections, pipes and tubes.

Urbanisation, development of new urban centres and increasing infrastructure requirements are expected to support long-term construction activity

Manufacturing and Industrial Expansion

The expansion of manufacturing capacity, industrial corridors, warehouses, logistics facilities and other industrial infrastructure is expected to create additional demand for structural steel and related products.

The governments focus on strengthening domestic manufacturing and infrastructure connectivity is also expected to support industrial investment.

Steel Demand and Production

India has emerged as one of the worlds major steel-producing and steel-consuming economies. According to the Ministry of Steel, Indias crude steel production and finished steel consumption have continued to expand, supported by infrastructure and construction demand.

Ministry of Steel - Government of India

2. Opportunities & Threats

The Companys diversified business portfolio provides opportunities across the Media & Entertainment, Information Technology-based Engineering Services and steel and engineering products trading segments. At the same time, each business vertical is exposed to distinct market, operational, technological and financial risks. The key opportunities and threats identified by the management are set out below:

OPPORTUNITIES	THREATS
Growing digital consumption and demand for differentiated content, supported by increasing adoption of streaming platforms and digital media.	Intense competition in the Media & Entertainment industry and rapidly changing audience preferences may affect content performance and monetisation.
Expansion of digital media and multiple content distribution channels, providing opportunities across film production, distribution and related media services.	Uncertainty in the commercial performance of individual films/content projects, including audience response, release timing and competitive offerings.
Increasing adoption of AI, automation, cloud technologies and data analytics, creating opportunities in Information Technology-based Engineering Services.	Rapid technological changes and obsolescence, requiring continuous investment in technology, skills and capabilities.
Growing demand for digital engineering and technology-enabled engineering solutions across multiple industries.	Availability and retention of specialised technical talent and increasing competition for skilled engineering professionals.
Increasing adoption of product engineering, process engineering, automation and asset- management solutions by industrial and technology-oriented customers.	Cybersecurity, data protection and technology-related risks associated with increasing digitalisation.
Infrastructure development and capital expenditure in India, supporting demand for TMT bars, girders, hollow sections, steel pipes, tubes and other engineering products.	Volatility in steel and other input prices, which may affect trading margins and inventory values.
Growth in roads, railways, urban infrastructure, industrial projects, logistics and construction, creating opportunities for the Companys steel and engineering products trading business.	Logistics and transportation cost volatility, which may affect delivered product costs and profitability.
Expansion of manufacturing and industrial activity, creating demand for structural steel and other engineering products.	High competition among manufacturers, distributors and traders, resulting in pricing pressure and potentially lower margins.
Diversification across three business verticals, providing the Company with exposure to multiple industry growth drivers.	Working-capital and liquidity requirements, particularly in the trading business, due to inventory and receivables cycles.
Development of new customer relationships, markets and strategic business opportunities across the Companys operating segments.	Customer credit and collection risks, which may adversely affect cash flows and working- capital efficiency.
Increasing convergence of engineering and information technology, creating opportunities for technology-led engineering solutions.	Macroeconomic, geopolitical and regulatory uncertainties may affect customer demand, investment activity, operating costs and business conditions.
Urbanisation and long-term infrastructure development, supporting structural demand for construction and infrastructure-related steel products.	Delays in infrastructure and industrial projects may affect the timing and volume of demand for engineering and steel products.

3. Segment-wise / Product-wise Performanc

The Companys business operations are diversified across Media, Film Production & Distribution; Information Technology-based Engineering Services; and Trading of Steel and Engineering Products for Infrastructure Projects. The performance of these business verticals during FY 2025-26 was influenced by prevailing industry conditions, business volumes, project execution, customer demand, product mix and the timing of revenue recognition.

Segment Revenue Performance

The segment-wise revenue performance of the Company for FY 2025-26, including comparative information for the previous financial year, has been disclosed in the Notes to the Financial Statements forming part of this Annual Report. The same may be read in conjunction with the discussion on the Companys business segments contained herein

4. Outlook

The Companys outlook is assessed against the evolving global and Indian economic environment and the structural trends influencing its three principal business verticals - Media, Film Production & Distribution; Information Technology-based Engineering Services; and Trading of Steel and Engineering Products for Infrastructure Projects.

While the global operating environment continues to be influenced by geopolitical developments, trade-policy changes, energy prices, inflation and financial-market conditions, several structural opportunities remain available through digitalisation, artificial intelligence, technology- led engineering, infrastructure development, urbanisation and changing patterns of media consumption.

The Company remains focused on strengthening its operating capabilities, improving execution, maintaining prudent financial and working-capital management and selectively pursuing opportunities aligned with its business capabilities and long-term objectives.

Global Economic Outlook Resilient Growth Amid a Changing Global Landscape

The global economy has demonstrated resilience despite heightened geopolitical and economic uncertainty. According to the International Monetary Funds World Economic Outlook Update, July 2026, global economic growth is projected at 3.0% in 2026 and 3.4% in 2027. The IMF highlights that the global outlook is being shaped by two contrasting forces - the drag arising from geopolitical and energy-related shocks and the positive momentum generated by technology investment and the adoption of artificial intelligence.

The global economic environment, however, remains uneven across countries and regions. Inflationary pressures have moderated from earlier peaks but the pace of disinflation has become less certain. The IMF expects global headline inflation to remain elevated at around 4.7% in 2026, highlighting the continuing challenge for policymakers.

Global Growth Outlook

Indicator	2026	2027	Broad Outlook
Global GDP Growth	3.0%	3.4%	Gradual strengthening
Global Inflation	4.7%	Moderating	Disinflation remains uneven
Technology Investment	Positive	Positive	AI-led investment supporting activity
Geopolitical Environment	Elevated uncertainty	Elevated uncertainty	Key downside risk
Trade Environment	Evolving	Evolving	Policy changes remain important

Source: International Monetary Fund, World Economic Outlook Update, July 2026.

The IMF notes that the technology-led investment cycle, particularly around AI, is providing support to economies integrated into global technology value chains. At the same time, renewed geopolitical tensions, energy-market disruptions, financial-market repricing and persistent trade- policy uncertainty remain important downside risks.

What this means for the Company

The global environment presents both opportunities and challenges for the Company. Technology- led investment can support demand for Information Technology-based Engineering Services, while global and domestic infrastructure activity can support demand for steel and engineering products. In the Media & Entertainment business, continuing digitalisation and changing consumer behaviour are expected to create opportunities across content creation and distribution.

Emerging Markets & Developing Economies Growth with Differentiated Opportunities

Emerging markets and developing economies are expected to remain an important component of global economic activity. However, the outlook remains differentiated across countries based on their exposure to energy prices, trade conditions, commodity markets, financial conditions and geopolitical developments.

The World Banks Global Economic Prospects, June 2026 highlights that emerging market and developing economies are facing increased pressure from higher energy prices, elevated uncertainty and tighter financial conditions. At the same time, the outlook varies considerably across regions, with South Asia remaining the fastest-growing EMDE region.

The medium-term opportunity for emerging economies remains supported by domestic consumption, infrastructure investment, manufacturing, digitalisation, services and increasing participation in global value chains.

Emerging Markets - Key Themes

Growth Driver	Opportunity
Domestic Consumption	Expanding consumer markets
Infrastructure Investment	Roads, railways, urban and industrial infrastructure
Manufacturing	Expansion of industrial capacity
Digitalisation	Technology adoption and productivity improvement
AI & Automation	New technology-led business opportunities
Services	Increasing global demand for specialised services
Global Value Chains	Greater integration with international markets

For the Company, the broader emerging-market environment provides opportunities particularly through technology-enabled engineering services and infrastructure-linked steel and engineering products, while the expanding digital consumer base also supports the long-term development of the Media & Entertainment ecosystem.

India Economic Outlook Strong Domestic Foundations

India is expected to remain one of the key growth engines of the global economy, supported by its large domestic market, infrastructure investment, services sector, digitalisation and increasing participation in global value chains.

The Indian economy is supported by several structural factors, including domestic consumption, public infrastructure expenditure, manufacturing activity, urbanisation, digital adoption and continued development of the services economy.

The World Banks June 2026 Global Economic Prospects identifies South Asia as the fastest- growing emerging-market and developing-economy region, although the broader outlook remains subject to energy prices, geopolitical developments and global financial conditions.

Structural Driver	Relevance to the Company
Infrastructure Development	Supports demand for TMT bars, girders, hollow sections, pipes and tubes
Urbanisation & Construction	Supports infrastructure and construction-related steel demand
Digitalisation	Creates opportunities for IT-based engineering services
AI & Automation	Supports technology-enabled engineering solutions
Manufacturing Expansion	Creates demand for engineering services and industrial products
Digital Media Consumption	Supports content production and distribution
Services Growth	Supports technology and engineering services
Domestic Consumption	Provides a broad underlying economic base

Media, Film Production & Distribution

The Media & Entertainment business is expected to benefit from the continuing shift towards digital consumption, multiple distribution platforms and evolving content preferences.

The increasing penetration of digital platforms provides content producers and distributors with opportunities to reach wider audiences and explore multiple monetisation channels. The Company intends to evaluate opportunities in film production, distribution and related media services while maintaining a disciplined approach towards content selection, project economics and distribution.

Information Technology-based Engineering Services

The Companys Information Technology-based Engineering Services business is positioned within an industry undergoing significant transformation through AI, automation, cloud computing, data analytics and digital engineering.

Increasing adoption of technology by businesses across industries is expected to create opportunities in product engineering, process engineering, automation-related services, asset- management solutions and other technology-enabled engineering services.

The Company intends to focus on strengthening its technical capabilities, customer relationships and delivery capabilities while selectively evaluating opportunities across emerging technology and engineering applications.

Trading of Steel & Engineering Products for Infrastructure Projects

The Companys trading business, comprising TMT bars, girders, hollow sections, steel pipes and tubes and other related engineering products, is closely linked to Indias infrastructure, construction and industrial development.

Continued investment in roads, highways, railways, metro systems, urban infrastructure, industrial facilities, logistics infrastructure and manufacturing capacity provides a supportive demand environment for steel and engineering products.

The Company intends to focus on efficient sourcing, product availability, customer servicing, prudent inventory management and disciplined receivables management. At the same time, management will continue to monitor steel-price volatility, competitive pressures, logistics costs and working-capital requirements.

5. Risks and Concerns

The Companys diversified business operations expose it to a range of business, operational, financial, technological, market and regulatory risks. The Company seeks to identify and monitor these risks on an ongoing basis and takes appropriate measures, within its capabilities, to mitigate their potential impact. However, the effectiveness of mitigation measures may vary depending on the nature and extent of the underlying risk.

The key risks and corresponding management responses are set out below:

RISK	BUSINESS IMPLICATION	MANAGEMENT RESPONSE
Market & Demand Risk	Changes in market conditions, customer demand and economic activity may affect business volumes, revenues and utilisation levels.	Regular monitoring of market conditions, customerrequirements and business performance, with appropriate business planning and prioritisation.
Media & Content Risk	The commercial performance of individual films or content projects may vary depending on audience preferences, release timing, competition and distribution reach.	Evaluation of projects based on commercial considerations, project monitoring and appropriate cost and distribution discipline.
Competition Risk	Intense competition across the Companys business verticals may result in pricing pressure, margin compression and challenges in customer acquisition and retention.	Focus on service quality, operational efficiency, customer relationships and selective pursuit of commercially viable opportunities.
Technology Risk	Rapid technological developments, including AI and automation, may result in technology obsolescence or require continuous enhancement of capabilities.	Periodic assessment of emerging technologies and focus on strengthening relevant technical capabilities and delivery processes.
Cybersecurity & Data Risk	Increasing dependence on digital systems and technology may expose the Company to cybersecurity, data protection and information-security risks.	Appropriate technology controls, access management, monitoring and periodic review of information- security practices.
Steel Price & Input Cost Risk	Volatility in steel prices and other input- related costs may affect trading margins, inventory values and overall profitability.	Continuous monitoring of market prices, prudent procurement practices, inventory management and evaluation of customer pricing.
Logistics Risk	Changes in transportation, freight and logistics costs may affect the delivered cost and margins of steel and engineering products.	Monitoring of logistics costs, sourcing arrangements and delivery planning to improve operational efficiency.
Working Capital & Liquidity Risk	Higher inventory levels, extended receivable cycles or delays in customer payments may increase working-capital requirements and put pressure on cash flows.	Regular monitoring of inventory, receivables and cash flows, together with disciplined credit and working-capital management.
Customer / Counterparty Risk	Dependence on customers or counterparties and delays in payments may adversely affect revenues and cash flows.	Customer assessment, appropriate credit controls and periodic monitoring of outstanding receivables.
Project Execution Risk	Delays, changes in scope or execution challenges in engineering projects may affect timelines, costs and customer satisfaction.	Project-level monitoring, defined responsibilities, periodic review of project progress and appropriate operational controls.
Talent & Skill Risk	Availability and retention of appropriately skilled personnel, particularly in technology and engineering services, may affect the Companys ability to execute projects and pursue new opportunities.	Focus on appropriate resource planning, capability development and retention of skilled personnel.
Regulatory & Compliance Risk	Changes in laws, regulations, industry requirements and reporting obligations may increase compliance requirements and operating complexity.	Ongoing monitoring of applicable regulatory developments and implementation of appropriate compliance processes.
Geopolitical & Macroeconomic Risk	Geopolitical developments, trade policies, inflation, interest rates and broader economic conditions may affect demand, costs and financial conditions.	Periodic assessment of external developments and appropriate adjustment of business and financial strategies.
Business Diversification Risk	Operating across multiple business verticals involves different market dynamics, operational requirements and risk profiles.	Periodic review of business performance, resource allocation and risk exposure across individual business verticals.

6. Internal Control Systems and their Adequacy

The Company has an internal control framework commensurate with the nature, size and complexity of its operations, covering financial reporting, authorisation of transactions, safeguarding of assets and compliance with applicable laws.

The Company has appointed an Internal Auditor who periodically reviews the internal control systems and provides observations and recommendations to the Management and, where applicable, the Audit Committee.

Based on the assessment undertaken for FY 2025-26, the Management is of the view that the Companys internal financial controls were adequate and operating effectively during the year. The Company continues to review and strengthen its control processes, as considered appropriate, in line with its business requirements.

7. Financial Performance vis-a-vis Operational Performance

The Companys financial performance for FY 2025-26, including revenue from operations, other income, total income, operating profit/(loss), profit/(loss) before tax and profit/(loss) after tax, along with comparative figures for FY 2024-25, is disclosed in the Financial Statements and Notes thereto forming part of this Annual Report.

The movement in financial performance during the year reflects the Companys operating activities, business volumes across its various business verticals and changes in operating and other expenses. The detailed financial results and year-on-year movements may be read in conjunction with the audited financial statements and the related disclosures contained elsewhere in this Annual Report.

8. Human Resources & Industrial Relations

Human resources continue to play an important role in supporting the Companys business operations and growth objectives. The Company endeavours to maintain an appropriately skilled and efficient workforce aligned with its operational requirements and the needs of its diverse business verticals.

The Company places emphasis on employee engagement, capability development, effective communication and a conducive work environment, with a focus on building a stable and productive workforce.

As at March 31, 2026, the Company had 10 employees. The employee strength is reviewed periodically based on business requirements and operational needs.

The industrial relations remained cordial and stable during FY 2025-26. The Company did not experience any material industrial relations issues during the year.

9. Key Financial Ratios

RATIO	FY 2025- 26	FY 2024- 25	CHANGE %	REASON FOR >25% CHANGE
Debtors Turnover	1.76	1.22	-44.26%	The ratio dropped from 1.22 to 1.76, indicating slower collection from customers. Although revenue increased, the trade receivables increased at a faster rate, leading to a decline in the ratio. This could raise concerns about credit policies, customer quality, or collection efficiency.
Inventory Turnover	0.00	0.00	0.00	NA
Interest Coverage Ratio	0.00	0.00	0.00	NA
Current Ratio	7.20	5.62	-28.19%	There is a significant improvement in the Current Ratio, increasing from 5.62 to 7.20. This improvement is primarily due to an increase in current assets and repayment of current liabilities. It reflects a stronger short-term liquidity position, meaning the company is better positioned to meet its immediate obligations. This could be the result of better working capital management or reclassification of long-term advances to current.
Debt Equity Ratio	0.00	0.00	0.00	NA
Operating Profit Margin	0.09%	5.21%	98.31%	This drop from 5.21% to 0.09% implies that the company is earning lower profit on each rupee of sales. It may be due to increased operating costs, reduced pricing power, or other margin pressures. This suggests a decline in operational efficiency and profitability.
Net Profit Margin	0.09%	5.21%	98.31%	This drop from 5.21% to 0.09% implies that the company is earning lower profit on each rupee of sales. It may be due to increased operating costs, reduced pricing power, or other margin pressures. This suggests a decline in operational efficiency and profitability.

10. Return on Net Worth

PARTICULARS	FY 2025-26	FY 2024-25	CHANGE
Return on Net Worth	0.35%	3.55%	90.17%

The decrease in ROCE from 3.55% to 0.35% indicates weaker returns on the total capital invested in the business. Contributing factors include reduced EBIT and increased capital employed (through infusion of share capital and reduced debt). This reflects underutilization of capital and lower earnings before interest and taxes.

11. Forward-looking Statement

Certain statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates and business prospects may constitute forward-looking statements. These statements are based on managements current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied due to changes in economic conditions, market dynamics, regulation, competition, technology, geopolitical developments and other factors beyond the Companys reasonable control.