May 13, 2016 Result Update ICICI Securities Ltd | Retail Equity Research Duty imposition augurs well for new facility • Century Plyboard’s (CPIL) topline grew 11.4% YoY to | 451.2 crore above our expectation of | 412.3 crore on the back of higher-than- expected growth in revenue from plywood division, which grew 9.9% YoY to | 320.7 crore (vs. our estimate of | 293.2 crore) and laminate division, which grew 14.7% YoY to | 92.3 crore (vs. our estimate of | 78.6 crore). In volume terms, plywood division volumes grew 4.4% YoY to 50725 CBM while laminates division volumes grew 17.9% YoY to 1.2 million sheets • The EBITDA margin contracted 246 bps YoY to 17.1%, on account of contraction of 470 bps in the EBIT margin of plywood division on account of higher employee & advertisement expenses and higher discounts availed, which were not provisioned earlier • The bottomline de-grew 15.6% YoY to | 40.5 crore on account of higher-than-expected effective tax rate (26.2% in Q4FY16 vs. 19.1% in Q3FY16). However, it was above our estimate of | 32.9 crore CPIL to benefit from anti dumping duty imposition… The government is set to impose anti-dumping duty on imports of a specific type of fibre board having thickness of 6 mm and above in the range of US$14.71-64.35/CBM for five years from Indonesia and Vietnam. Currently, it is awaiting Finance Ministry approval. With ~30% of domestic demand being catered by imports, we believe this duty imposition could throw up incremental opportunity of ~1,10,000 CBM for domestic players (assuming that ~70-75% imports happen in MDF of >6mm thickness). Currently, CPIL is setting up an MDF facility in North with capacity of 1,80,000 CBM and investment of | 380 crore. The company has fast-tracked the construction of its MDF plant and is expected to come on stream by January, 2017 (six months ahead of schedule). In our view, this duty imposition augurs well for CPIL as its MDF facility is well set to cater the incremental demand arising from dipping imports. Further, the management expects this new capacity to operate at 70% capacity utilisation in FY18E. Laminates division continues to perform well… The laminates division has again performed well with revenue growth of 14.7% YoY to | 92.3 crore while the EBIT margins expanded 670 bps YoY to 14.7%. In terms of yearly performance, laminate revenues grew 14.2% YoY to | 335.3 crore while EBIT margins expanded 550 bps YoY to 13.3%. Further, CPIL is doing well in exports as laminate revues from exports grew 26% YoY to | 82.4 crore in FY16. Going ahead, we expect its laminate segment revenues to grow at 15.8% CAGR to | 449.5 crore in FY16-18E while its EBIT margin is expected to expand 70 bps to 13.5% over FY16-18E. To benefit from expanding organised pie; maintain BUY... We expect revenues/net profit to grow at 19.2%/19.1% CAGR to | 2354.6 crore/| 238.6 crore, respectively, over FY16-18E on the back of commissioning of MDF capacity in H1CY17. Further, imposition of anti- dumping duty would help CPIL capture incremental demand. We continue to like CPIL as we envisage the Indian organised plywood player’s pie (currently ~30% of total plywood market) will expand in coming years on the back of structural changes like rollout of GST and higher brand aspirations. Hence, we maintain our BUY recommendation on CPIL with revised price target of | 205. We value CPIL at 19x FY18 EPS (at 1x PEG). Century Plyboards (India) (CENPLY) | 171 Rating matrix Rating : Buy Target : | 205 Target Period : 12-18 months Potential Upside : 20% What’s Changed? Target Changed from | 190 to | 205 EPS FY17E Changed from | 8.8 to | 8.4 EPS FY18E Changed from | 10.9 to | 10.7 Rating Unchanged Quarterly Performance (| crore) Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%) Revenue 451.2 404.9 11.4 388.6 16.1 EBITDA 77.3 79.4 -2.6 69.6 11.1 EBITDA (%) 17.1 19.6 -246 bps 17.9 -77 bps PAT 40.5 48.0 -15.6 41.6 -2.6 Key Financials (| Crore) FY15 FY16E FY17E FY18E Net Sales 1,564.8 1,658.5 1,825.4 2,354.6 EBITDA 264.3 287.5 323.2 425.3 Net Profit 150.8 168.1 187.4 238.6 EPS (|) 6.8 7.6 8.4 10.7 Valuation summary (x) FY15 FY16E FY17E FY18E P/E 25.2 22.6 20.3 15.9 Target P/E 30.2 27.1 24.3 19.1 EV / EBITDA 16.2 14.7 14.0 10.7 P/BV 9.8 7.2 5.8 4.7 RoNW (%) 38.9 31.8 28.8 29.6 RoCE (%) 25.2 24.9 19.1 21.7 Stock data Particular Amount (| crore) Market Capitalization 3,799.2 Total Debt 432.0 Cash 17.0 EV 4,214.1 52 week H/L (|) 219 / 136 Equity capital 22.3 Face value (|) 1.0 Price performance (%) (%) 1M 3M 6M 12M Greenply Industries 21.1 26.5 21.0 13.6 Century Plyboard (4.0) 24.5 (3.4) 1.9 Archidply Industries 3.0 13.5 (3.7) 58.4 Sarda Plywood (12.9) (17.5) (12.4) 53.6 Research Analyst Deepak Purswani [email protected]Vaibhav Shah [email protected]
Transcript
May 13, 2016
Result Update
ICICI Securities Ltd | Retail Equity Research
Duty imposition augurs well for new facility • Century Plyboard’s (CPIL) topline grew 11.4% YoY to | 451.2 crore
above our expectation of | 412.3 crore on the back of higher-than-expected growth in revenue from plywood division, which grew 9.9% YoY to | 320.7 crore (vs. our estimate of | 293.2 crore) and laminate division, which grew 14.7% YoY to | 92.3 crore (vs. our estimate of | 78.6 crore). In volume terms, plywood division volumes grew 4.4% YoY to 50725 CBM while laminates division volumes grew 17.9% YoY to 1.2 million sheets
• The EBITDA margin contracted 246 bps YoY to 17.1%, on account of contraction of 470 bps in the EBIT margin of plywood division on account of higher employee & advertisement expenses and higher discounts availed, which were not provisioned earlier
• The bottomline de-grew 15.6% YoY to | 40.5 crore on account of higher-than-expected effective tax rate (26.2% in Q4FY16 vs. 19.1% in Q3FY16). However, it was above our estimate of | 32.9 crore
CPIL to benefit from anti dumping duty imposition… The government is set to impose anti-dumping duty on imports of a specific type of fibre board having thickness of 6 mm and above in the range of US$14.71-64.35/CBM for five years from Indonesia and Vietnam. Currently, it is awaiting Finance Ministry approval. With ~30% of domestic demand being catered by imports, we believe this duty imposition could throw up incremental opportunity of ~1,10,000 CBM for domestic players (assuming that ~70-75% imports happen in MDF of >6mm thickness). Currently, CPIL is setting up an MDF facility in North with capacity of 1,80,000 CBM and investment of | 380 crore. The company has fast-tracked the construction of its MDF plant and is expected to come on stream by January, 2017 (six months ahead of schedule). In our view, this duty imposition augurs well for CPIL as its MDF facility is well set to cater the incremental demand arising from dipping imports. Further, the management expects this new capacity to operate at 70% capacity utilisation in FY18E. Laminates division continues to perform well… The laminates division has again performed well with revenue growth of 14.7% YoY to | 92.3 crore while the EBIT margins expanded 670 bps YoY to 14.7%. In terms of yearly performance, laminate revenues grew 14.2% YoY to | 335.3 crore while EBIT margins expanded 550 bps YoY to 13.3%. Further, CPIL is doing well in exports as laminate revues from exports grew 26% YoY to | 82.4 crore in FY16. Going ahead, we expect its laminate segment revenues to grow at 15.8% CAGR to | 449.5 crore in FY16-18E while its EBIT margin is expected to expand 70 bps to 13.5% over FY16-18E. To benefit from expanding organised pie; maintain BUY... We expect revenues/net profit to grow at 19.2%/19.1% CAGR to | 2354.6 crore/| 238.6 crore, respectively, over FY16-18E on the back of commissioning of MDF capacity in H1CY17. Further, imposition of anti-dumping duty would help CPIL capture incremental demand. We continue to like CPIL as we envisage the Indian organised plywood player’s pie (currently ~30% of total plywood market) will expand in coming years on the back of structural changes like rollout of GST and higher brand aspirations. Hence, we maintain our BUY recommendation on CPIL with revised price target of | 205. We value CPIL at 19x FY18 EPS (at 1x PEG).
Page 3ICICI Securities Ltd | Retail Equity Research
Company Analysis Anti-dumping duty imposition to change MDF industry dynamics…
The MDF industry in India accounts for a mere 5% share of the wood panel industry and is worth ~| 1400 crore. The industry is completely organised with only about five MDF manufacturers in India while remaining players trade in MDF. The demand for MDF in India is at 5,50,000 CBM of which domestic players cater to ~73% (4,00,000 CBM) while imports cater to the balance. Further, out of the total domestic capacity of 5,10,000 CBM, 78% is utilised.
The government is set to impose anti-dumping duty on imports of a specific type of fibre board having thickness of 6 mm and above in the range of US$14.71-64.35/CBM for five years from Indonesia and Vietnam. Currently, it is awaiting Finance Ministry approval. With imports catering to ~30% of domestic demand, we believe this duty imposition could throw up an incremental opportunity of ~1,10,000 CBM for domestic players (assuming that ~70-75% imports happen in MDF of >6mm thickness). Currently, CPIL is setting up an MDF facility in North with capacity of 1,80,000 CBM and investment of | 380 crore. The company has fast-tracked the construction of its MDF plant and is expected to come on stream by January, 2017 (6 months ahead of schedule). In our view, this duty imposition augurs well for CPIL as its MDF facility is well set to cater the incremental demand arising from dipping imports. Further, the management expects this new capacity to operate at 70% capacity utilisation in FY18E. In our view, CPIL’s MDF facility would be coming on stream at the right time with anti-dumping duty imposition set to create opportunities for domestic players on account of a significant dip in MDF imports. Sensing this opportunity, the company has fast-tracked its MDF project and expects it to come on stream by January, 2017 (six months ahead of schedule).
Exhibit 1: Depiction of anti-dumping duty implication…
Incremental Opportunity, 105000
CBM, 19%
Imports, 45000 CBM, 8%
Domestic Production, 400000 CBM, 73%
Domestic industry can cater to this incremental demand as it has an unutilized capacity of 1,10,000 CBM
Imports, 150000 CBM, 27%
Domestic Production, 400000 CBM, 73%
Domestic capacity of ~5,10,000 CBM
Scenario post anti-dumping duty Imposition
Source: Company, ICICIdirect.com Research
Page 4ICICI Securities Ltd | Retail Equity Research
Leading plywood player in India…
CPIL, with seven manufacturing plants and an aggregating capacity of 209,420 CBM, is a leading plywood player in India. At CPIL, one of the principal initiatives that was taken was the prudent addition to the capacity of respective businesses. This decision to increase production capacity in the midst of an economic slowdown was CPIL’s conviction in long-term prospects, relatively better equipment value during such periods and quicker delivery
The plywood & allied products division grew 9.9% YoY to | 320.7 crore while laminates & allied segment grew 14.7% YoY to | 92.3 crore in Q4FY16. Further, the EBITDA margin was lower for the quarter partly on account of higher employee and advertisement expenses and partly due to higher discounts availed which were not provisioned earlier.
Going ahead, we expect plywood sales volume at 274,856 CBM in FY18E with average realisation of | 50,193 per CBM. This would lead to revenue CAGR of 20.8% during FY16-18E to | 1711.1 crore.
Exhibit 3: Plywood sales volume and average realisation
2340
00
2417
94
2543
19
2748
5648.7
50.2
48.549.0
210000220000230000240000250000260000270000280000
FY15 FY16 FY17E FY18E
(CBM
)
48.0
49.0
50.0
51.0
('000
|/CB
M)
Sales Volume Average Realization
Source: Company, ICICIdirect.com, Research
Exhibit 4: Plywood revenue and growth trend
1147
.1
1173
.5
1711
.1
1267
.9
18.9
35.0
8.02.3
800.0
1000.0
1200.0
1400.0
1600.0
1800.0
FY15 FY16 FY17E FY18E
(| c
rore
)
0.05.010.0
15.020.025.030.0
35.040.0
(%)
Plywood & Allied products YoY growth (%)
Source: Company, ICICIdirect.com, Research
The plywood & allied products division grew 9.9% YoY to
| 320.7 crore while laminates & allied segment grew 14.7% YoY to | 92.3 crore in Q4FY16
Page 5ICICI Securities Ltd | Retail Equity Research
Laminate business: well poised in terms of capacity…
At a very early stage, CPIL recognised the need to cater to customers with a growing supply of varied interior products. Hence, the company extended from manufacture of plywood to laminates, decorative veneers etc. facilitating cross sale, superior leverage of existing brand and a better use of a robust dealer network. After creating a strong brand recall in plywood and leveraging it, going ahead, CPIL would now be focusing on the laminate segment through aggressive brand spending. Going ahead, we expect enhanced capacity and branding to lead to an increase in market share and, in turn, robust revenue growth. Operating leverage would lead to an increase in margins and, in turn, higher profitability. In Q4FY16, the revenues of laminate & allied products business grew 14.7% YoY to | 92.3 crore while the EBIT margin expanded 670 bps YoY to 14.7%. In FY16, the laminate & allied products business grew at a healthy pace of 14.2% YoY to | 335.3 crore with EBIT margin of 13.3%. The company is successfully exporting to South East Asia and America and with the developments in the South East, the company is hopeful for a good growth. In FY16, company registered robust 26% YoY growth in exports to | 82.4 crore. Going ahead, we expect revenues to grow at 15.8% CAGR to | 449.5 crore during FY16-18E
Exhibit 7: Laminate sales volume and average realisation trend
3.64.3
4.95.4
718
693688679
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY15 FY16 FY17E FY18E
(milli
on s
heet
s)
650
680
710
740
(|/s
heet
)
Sales Volume Average Realization
Source: Company, ICICIdirect.com Research
Exhibit 8: Laminate revenue and growth trend
293.
5
335.
3
449.
5
387.
3
24.0
15.5 16.114.2
0.0
100.0
200.0
300.0
400.0
500.0
FY15 FY16 FY17E FY18E
(| c
rore
)
0.0
5.0
10.0
15.0
20.0
25.0
30.0(%
)
Laminates & Allied products YoY growth (%) [
Source: Company, ICICIdirect.com Research
Page 6ICICI Securities Ltd | Retail Equity Research
Net revenues to grow at 19.2% CAGR in FY16-18E…
On the basis of our demand drivers, we expect the plywood and panel industry to grow at a decent rate. With the structural shift in the industry, we believe CPIL would be a key beneficiary, going ahead. CPIL’s strong brand equity, raw material security and robust distribution network would give a significant boost to its revenues in the coming years. The company has been able to counter a progressive commoditisation of plywood with increased realisation of its well established brands. Hence, CPIL’s products command 15-30% premium over other products. Consequently, we estimate CPIL’s net revenue will grow at 19.2% CAGR to | 2354.6 crore over FY16-18E.
EBIT margin expected to expand on back of operating leverage…
CPIL’s prudent strategy to augment the capacity in both plywood and laminates in challenging times for the business would benefit in times of rebound. The plywood division and laminate division were operating at 85% and 89% of their respective capacities as on FY16. Hence, going ahead, we expect operating leverage to play out well for CPIL. Consequently, EBIT is expected to grow at 19.8% CAGR to | 350.8 crore during FY16-18E. We expect the EBIT margin to remain flat at 14.9% in FY18E.
We expect revenues to witness robust growth of 19.2%
CAGR to | 2354.6 crore during FY16-18E
We expect an EBIT margin to remain flat at 14.9% in
FY18E. Consequently, EBIT is expected to grow at 19.8%
CAGR to | 350.8 crore during FY16-18E
Page 7ICICI Securities Ltd | Retail Equity Research
PAT to grow at 19.1% CAGR in FY16-18E…
CPIL imports substantially for its raw material requirements. The company reviews foreign currency risk periodically and takes hedging initiatives accordingly. In FY14, due to forex volatility, CPIL had to book losses worth ~| 44 crore on its unhedged open positions of buyer’s credit, which impacted its bottomline substantially. With a strong brand recall, robust distribution network, structural change in raw material procurement method and expansion in margin on account of operating leverage, we expect earnings to grow at a faster pace, going ahead. Hence, we expect the bottomline to grow at 19.1% CAGR to | 238.6 crore on the back of strong revenue growth and margin show.
Exhibit 13: PAT growth trend
52.767.0
150.8168.1
187.4
238.6
0.0
50.0
100.0
150.0
200.0
250.0
300.0
FY13 FY14 FY15 FY16 FY17E FY18E
(| c
rore
)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
(%)
PAT PAT Margin (RHS)
Source: Company, ICICIdirect.com Research
We envisage healthy bottomline growth of 19.1% CAGR
during FY16-18E to | 238.6 crore aided mainly by the
strong topline performance and margin show
Page 8ICICI Securities Ltd | Retail Equity Research
Healthy return ratios…
The average RoE and RoCE of CPIL during FY09-15 have remained at the level of 24.4% and 18.8%, respectively. Going forward, RoE and RoCE should moderate to 29.6% and 21.7%, respectively in FY18E.
Exhibit 14: RoE and RoCE trend
26.8
19.2 21.1 23.0
38.9
31.828.8 29.6
18.2 17.413.0
15.9
25.2 24.9
19.121.7
35.4
25.6
0.05.0
10.015.020.025.030.035.040.045.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
(%)
RoE RoCE
[
Source: Company, ICICIdirect.com Research
Exhibit 15: DuPont Analysis
8.5 5.4 4.7 5.2 9.611.4 10.1 10.3 10.1
1.71.6 1.6
1.5
2.1
2.92.7
2.3
2.0
1.81.7
1.8
1.71.3
1.91.9
2.2
0.0
3.0
6.0
9.0
12.0
15.0
18.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
(%)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
(x)
PAT Margin Asset Turnover (RHS) Leverage (RHS)
26.835.4 19.2 21.1 38.9 34.1 31.3 30.923.0
Source: Company, ICICIdirect.com Research Bubble value represents RoE
Page 9ICICI Securities Ltd | Retail Equity Research
Conference Call Highlights
• CPIL’s 600 CBM/ day capacity MDF plant is expected to be come on stream by January, 2017. It entails an investment of | 380 crore with | 292 crore to be spent in FY17E & | 50 crore in FY18E. The company would be raising ~| 200 crore worth term loans for funding the facility. It expects the plant to operate at ~70% capacity utilisation in FY18E
• The company has completed its particle board plant and is
awaiting electricity supply from the Tamil Nadu government post which it will commence production by June, 2016
• In the plywood division, the EBITDA margin was lower for the
quarter partly on account of higher employee and advertisement expenses and partly due to higher discounts availed which were not provisioned earlier. Overall, the management feels that 17% EBITDA margin is sustainable
• The management expects the laminates division to grow at ~20%
in FY17E. Going ahead, if there is more demand, it would look to built an additional capacity in Kolkata
• The tax rate during the quarter came in higher on account of
certain adjustments made in year end. Going ahead, post the commissioning of MDF plant, the management feels the tax rate would be in the range of 18-20% as only its North East unit and CFS business would be tax free
• In FY16, the plywood division was operating at 85% capacity
utilisation while the laminates division was operating at 89% capacity utilisation
• The debt for the company was at | 455 crore, which comprises
long term debt of | 64 crore and short-term debt of | 391 crore
Page 10ICICI Securities Ltd | Retail Equity Research
Valuation Maintain BUY with revised target price of | 205…
At the CMP, the company is trading at 20.4x FY17E EPS and 16x FY18E EPS. With its strong brand recall and distribution network, the company is likely to be a key beneficiary in the plywood segment, which is going through a structural shift towards an organised market due to roll out of GST, ban on timber export by Myanmar and brand aspiration. Consequently, we expect earnings to grow at a healthy 19.1% CAGR in FY16-18E. We also envisage an improvement in return ratios with better utilisation of its capacity. Therefore, on account of the above-mentioned factors, CPIL is well placed among its peers. Therefore, we maintain our BUY recommendation on the stock with a with a revised target price of | 205. We have ascribed a target multiple of 19x FY18E EPS. Exhibit 16: Valuation metrics
We maintain BUY recommendation on CPIL with a target
price of | 205/share. Our target price implies 19x FY18
EPS. At the CMP, the company is trading at 20.4x FY17E
EPS and 16x FY18E EPS
Page 11ICICI Securities Ltd | Retail Equity Research
Exhibit 17: Century one year forward P/E
0
50
100
150
200
250
300
350
400
Apr-0
9
Sep-
09
Feb-
10
Jul-1
0
Dec-
10
May
-11
Oct-1
1
Mar
-12
Aug-
12
Jan-
13
Jun-
13
Nov
-13
Apr-1
4
Sep-
14
Feb-
15
Jul-1
5
Dec-
15
May
-16
Pric
e (|
)
Price 5x 15x 25x 30x 35x
Source: Company, ICICIdirect.com Research
On April 1, 2014 Myanmar banned the export of raw timber logs leading to a structural shift in the industry
Capex phase: • Capacity expansion from 25,400 CBM to 209,420
CBM in plywood • Capacity expansion from 2.4 million sheets to 4.8
million sheets in laminates
Earning growth phase: CPIL’s earnings to grow at 19.1% CAGR in FY16-18E with healthy return ratios (RoE – 29.6% in FY18E). Hence, expect re-rating of the stock, going ahead.
Page 12ICICI Securities Ltd | Retail Equity Research
Company snapshot
0
50
100
150
200
250
300
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
15
Jul-1
5
Jan-
16
Jul-1
6
Jan-
17
Target Price | 205
Source: Bloomberg, Company, ICICIdirect.com Research
Key events
Date EventFY04 Rights issue 40% at | 30 premiumFY04 Bonus 1:2 ratioFY07 Acquires 51% stake in Auro SundaramFY08 Stock split 1:10 FY08 Acquisition of Star Ferro & Cement LtdFY09 CFS business becomes operationalFY10 Acquires 51% stake in Aegis BusinessFY13 Demerger of Star Ferro and Cement LtdFY13 Ventures into readymade furniture businessFY14 Acquires 50% stake in Century InfotechFY14 Demerger of Aegis businessNov-15 Plans to build an MDF facility in Punjab with annual capacity of 1,80,000 CBM with capital expenditure of ~| 400 crore
Investor name Value (m) Shares (m) Investor name Value (m) Shares (m)Dimensional Fund Advisors, L.P. 0.2 0.1 ICON Advisers, Inc. -0.3 -0.1M. M. Warburg Bank (Schweiz) AG 0.2 0.1 Canara HSBC Oriental Bank of Commerce Life Insurance Co., Ltd. -0.1 -0.1Canara Robeco Asset Management Company Ltd. 0.0 0.0 Reliance Capital Asset Management Ltd. -0.1 0.0Mellon Capital Management Corporation 0.0 0.0 Edelweiss Asset Management Ltd. -0.1 0.0Sundaram Asset Management Company Limited 0.0 0.0 Van Eck Associates Corporation 0.0 0.0
` Sells
Source: Reuters, ICICIdirect.com Research
Page 13ICICI Securities Ltd | Retail Equity Research
Financial summary Profit and loss statement (| Crore)
Page 15ICICI Securities Ltd | Retail Equity Research
RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;
Page 16ICICI Securities Ltd | Retail Equity Research
Disclaimer
ANALYST CERTIFICATION We , Deepak Purswani, CFA MBA (Finance), Vaibhav Shah MBA (Finance); research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
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