Download - Edita Food industries reports 3Q2015 EarningsNov 12, 2015 · 3Q2015 Earnings rElEasE Cairo, Egypt | 12 November 2015 4 3Q2015 Earnings rElEasE pared to 93% in 2Q2015 and 100% in

3Q2015 Earnings rElEasECairo, Egypt | 12 November 2015

3Q2015 Earnings rElEasE1

Edita Food industries reports 3Q2015 EarningsHealthy revenue growth driven by the croissant and candy segments with an EBITDA margin of 20.3%.

Highlights for 3Q2015

Revenues EGP 535.4 mn▲20.5% y-o-y

Gross Profit EGP 197.8 mn▲25.7% y-o-y

EBITDAEGP 108.8 mn▲28.8% y-o-y

Net Profit After Minority1 EGP 85.7 mn▲163% y-o-y

The discussion and analysis in this report are based on the IFRS statements. For comparison of the results to Egyptian Accounting Standards, please refer to the section “Egyptian Accounting Standards Reconciliation to IFRS”.

3Q2015 at a Glance

• Revenue increased 20.5% over 3Q2014 to EGP 535.4 million on the back of significantgrowthincroissants.RevenueofEGP1.58billionin9M2015up16.9%over9M2014.

• GrossProfitofEGP197.8million,a25.7%increaseover3Q2014withagrossprofitmarginof36.9%,upfrom35.4%in3Q2014.

• EBITDAmarginof20.3%,upfrom19.0%in3Q2014.• NetProfitafterTaxandMinorityInterestofEGP85.7millionin3Q2015,up

163%y-o-y(includesEGP23.9millionoftaxreversals1 during 3Q2015).Ad-justedNetProfitafterTaxandMinorityInterestforthequarterofEGP61.8millionwithamarginof11.5%.

• OnAugust13,2015,Editalaunchedanewandmorepremiumvarianttoitscroissantsegment,MoltoMix,adouble-filledcroissantwith2adjacentfill-ings2.

• InlinewiththeCompany’sstrategytoincreaseaveragepricepoints(andhencemargins),onSeptember27,2015EditalaunchedTwinkiesExtra,anupsizedTwinkiesatEGP1perpackanddelistedTwinkies(soldat50pias-ters).

• ThenewrusklineiscurrentlyunderinstallationattheE07factoryandisontrack to begin commissioning in the second half of December 2015. The stru-delline,initiallyplannedtostartproductionin4Q2015,will,aspreviouslyannounced,nowstartcommissioningduringFebruary2016.

1InAugust2015,theGovernmentofEgyptdecreasedtheincometaxratefrom30%to22.5%retroactivelystartingJanuary2015.During1H2015.Editawasaccru-ingtaxesatthehigherrateof30%andaccordinglythecompanyreversedatotalofEGP23.9millionin3Q2015owingtothegovernment’sdecision.

2ThetwovariationsofMoltoMixarecream&chocolatefillingandcream&strawberryfilling,andareavailableintheXXLsizeatEGP2perpack.



Results in a NutshellEditaFoodIndustriesS.A.E.(EFID.CAontheEgyptianExchange&EFIDq.LontheLondonStockExchange),aleaderintheEgyptianpackagedsnackfoodmarketwithnumber-onemarketsharesinitscorecakeandcroissantsegments,announcesitsresultsforthethirdquarterof2015reportingahealthygrowthinrevenuesacrossallitsseg-ments,anddespitethedifficultiesfacingtheEgyptianmarket,withtoplinecomingin16.9%highery-o-yatEGP1,579millionforthe9M2015period.

Meanwhile,onathreemonthsbasisthecompanyturnedatoplineofEGP535.4millionin3Q2015,up20.5%y-o-yprimarilyonthebackofcapacityadditionsthatbegantobearfruitespeciallyinthecroissantsegmentwhichreporteda58.1%y-o-ygrowthinthequarter.Growthinthecakesegmentstoodat4.3%y-o-yin3Q2015.

Onthecostside,3Q2015sawageneralincreaseinexpensesontheoperationallevelinlinewithCompany’sgrowthpath.OverallCOGSincreased17.6%y-o-yonthebackofhighermanufacturingoverheadsandincreasedenergycosts.Grossprofitmargins,however,rosetoahealthy36.9%comparedto35.4%in3Q2014.

During3Q2015,SG&A3increasedto19.1%ofsales,asEditaincreasedadvertisingtosupportbothincreasedcapacitiesandnewproducts,andalsopreparedforthelaunchofthreenewdistributioncenters.

Snapshot of Results (EGP million)

3SG&AisthesummationofSelling&Distributionexpenses,Advertising&Marketingexpenses,andGen-eral&Administrativeexpenses,allofwhichareincludedinthecompany’sauditedfinancialstatementsunderDistributionCostsandAdministrativeExpenses.

*InAugust2015,theGovernmentofEgyptdecreasedtheincometaxratefrom30%to22.5%retroactivelystartingJanuary2015.During1H2015.Editawasaccruingtaxesatthehigherrateof30%andaccordinglythecompanyreversedatotalofEGP23.9millionin3Q2015owingtothegovernment’sdecision.



RevenuesRevenues Progression (in EGP million)

Totalrevenueincreased20.5%over3Q2014levelstoEGP535.4million,androse4.0%comparedto2Q2015.Growthwasmostlyvolumedrivenduetoincreasedcapacityinthe croissant and cake segments. Revenues from the croissant segment increased to 35.4%ofrevenues,upfrom26.9%ayearearlier,whilethecontributionofcakesalesdecreasedto54.3%ofthetotalin3Q2015,downfrom62.7%in3Q2014,inlinewiththeCompany’sstrategytodiversifyitsproductportfolio

Revenuesfromthecroissantsegmentgrew58.1%y-o-yand23.5%q-o-qtoreachEGP189.3million,mostlyvolumedrivenbycapacityadditionsofthetwonewlinescom-missionedduring1H2015.Thecroissantsegmentcontributed35.4%toEdita’srevenuein3Q2015,upfrom29.8%inthepreviousquarter,reflectingtheincreasedcapacityandthecompletionoftherampupofthenewlinesthathadstartedoperationduringthefirsthalfoftheyear.Onay-o-ybasis,higherutilizationratesonthecroissantlinesingeneralalsocontributedtothegrowthinrevenues.Theaverageutilizationratesonthecroissantproductionlinesduring3Q2015wasat96%inspiteofthecapacityaddi-tions,reflectingstrongdemandinthemarket.Asthenewhigher-pricedMoltoMix4wasintroducedtowardtheendofthequarter,theaverageconsumerpricepercroissantSKUremainedatEGP1.11ascomparedtothe2Q2015pricelevel.Ontheproductionlevel,yeartodateEditaproduced27,078tonsofcroissantin9M2015,upfrom24,630tonsin9M2014.Capacityinthegeneralcroissantsegment,albeitduetoadifferentvariationoftheproduct,willfurtherincreaseasthestrudelproductionlinestartscommissioninginFebruary2016.

During3Q2015,revenuefromcakesincreased4.3%over3Q2014levelstoEGP290.9million.Onaquarterlybasis,revenuefromthecakesegmentdecreasedby1.6%q-o-q,attributedtothefactthatutilizationrateswereintentionallybroughtdowninprepara-tionforthedelistingoftheEGP0.50TwinkiesSKUandtheintroductionofTwinkiesExtraatEGP1.Overallutilizationonthecakelinesduring3Q2015was91%com-

4OnAugust13,2015,Editalaunchedanewandmorepremiumvarianttoitscroissantsegment,MoltoMix,whichsellsataconsumerpriceofEGP2higherthantheaverageofthecurrentcroissantconsumerpriceperSKU.MoltoMixtotalrevenueforthesixweekssinceitslaunchin3Q2015recordedEGP7.8million,c.4.1% of the croissant total.

Segment Contributionto Revenue 3Q2014 (EGP mn)

Segment Contributionto Revenue 3Q2015 (EGP mn)

Cakes EGP 278.8 Croissants EGP 119.8 Rusks EGP 23.5 Wafers EGP 9.1 Candy EGP 11.5 Imports EGP 1.8




paredto93%in2Q2015and100%in3Q2014.ThecakesegmentremainsEdita’scoreproductandcontributed54.3%tototalnetrevenueduring3Q2015,downfrom57.4%in 2Q2015. The key drivers contributing to the slight decline in revenue since 2Q2015 werevolumedriven.TheaverageSKUconsumer-sellingpriceofcakesin3Q2015increased2.9%over3Q2014toEGP0.69perpack.

Edita’smarketshareinthecakesegmentincreasedslightlyover2Q2015to64.5%.Dur-ing3Q2015,EditatookthedecisiontoupsizeTwinkies,increasingitssizeanddoublingitsconsumerpricetoEGP1perpack.Itworthnotingthatduring9M2015,thetotalnetrevenueofTwinkieswasEGP335million(approximately37%ofcakerevenuesand21%oftotalrevenues).Therationalebehindtheupsizingisbothafinancialone(in-creasingtheCompany’sgrossprofitmarginfromitscorecakeproduct)aswellasbeingresponsivetonewmarketdynamicsintermsofpricepoints(basedonmarketresearch,themarketpreference/“sweetpricepoint”ismovingawayfrom50piastersperpackandtowardtheEGP1pricepoint).ThenextsteponwhichEditawillembark,andhasactu-allystartedpreparingfor,isthelaunchofseveralnovelproductstothemarketstarting2016,someofwhichhavebeendevelopedin-house,whileotherswillbebasedonthenewproductswhoseknowhowwasacquiredfromHostessBrands.

Salesofruskswere8.3%downin3Q2015over3Q2014levels(2.6%downq-o-q)toEGP21.5millionandconstituted4%ofEdita’stotalnetsales.Again,thisdeclinewasvolumedriven,astheutilizationratesdecreasedto97%from100%ayearearlier,dueto management redirecting some of the labor on the rusks line to the croissant lines to overcomelaborshortagesandtobettermanageresources.Edita’sManagementbelievesrusks’revenueswillreboundsignificantlyaftercapacityisdoubledwiththenewlinecommencingproductioninthesecondhalfofDecember2015.

Wafersalesduring3Q2015reflectedtheseasonalitywithinthissegment,asc.80%ofEdita’swafersalesareofthecoatedvarietythatarenotpopularduringthesummermonths.Asaresult,althoughwafersalesincreased39.6%over3Q2014levelstoEGP12.7million,theywerec.44%lowerthan2Q2015.ToreflectEdita’spolicyofonlyholdinganinventoryofthree-day-oldfinishedgoods,theutilizationrateofthewaferlinewasbroughtdowntoanaverageof71%from87%inthepreviousquarter.Waferrevenuesrepresented2.4%ofEdita’srevenuescomparedto2.1%ayearearlier.

Comingfromalowbase,revenuefromthecandysegmentgrewby66.3%over3Q2014levels(1.8%q-o-q)toreachEGP19.2million,operatingatanaverageutilizationrateof89%acrossthethreelines.Notonlywastheincreaseduetothechangeinthebusinessmixofthecandyproductssince2014(increasingtheconsumerpriceperpacktoEGP2.05),butitalsorelatestothecapacityenhancementsthatincreasedtotalcapacitydur-ingthequarterby68%comparedto2014levels.

Totalrevenueinthe9M2015increased16.9%toEGP1.579billioncomparedtoEGP1.350billioninthesameperiodlastyear.Edita’stotalproductionfor9M2015reached82.1thousandtons(2.3billionpacks)comparedto73thousandtonsin9M2014(2.1billionpacks).Hereunderistheprogressionofblendedfactorypricesforallproductsegments:



Average Factory Prices

EGP 3Q2014 3Q2015 % ChangeCakes 0.51 0.53 3.7%Croissant 0.88 0.87 -1.0%Rusks 0.81 0.81 0.0%Wafers 0.74 0.75 0.5%Candy 1.03 1.17 13.9%Average Edita 0.61 0.65 7.0%

3Q2015 Revenue Growth by Segment (y-o-y)

Cost of Goods Sold5

In3Q2015,thecostofgoodssoldincreased17.6%over3Q2014levelstoEGP337.6million,resultinginaCOGS/salesratioof63.1%,downfrom64.5%in3Q2014.

During3Q2015,thecostofsales(directmaterials)grewby15.3%y-o-ytoEGP258.2million,ataratebelowrevenuegrowth,benefitingfromboththegeneraldeclineinglobalcommoditypricesaswellasthecompetitivepricestheSupplyChainhadlockedinforcommoditiesthatwereseeinganincreaseinprice,includingcocoaandpackaging(OPP)6.EditamanagedtosaveonthebudgetedcostsofsalesastheCompanylockedinfavorablepricesacrossmostmaterialsandinsomecases,lockedinpricesuntil3Q2016,includingmilkpowder.Inadditiontolockinginthepricesofcommoditiespriortotheirincrease,theSupplyChainDepartmentmorerecentlysecuredsugaruntil1Q2016atfavorableprices.Inaddition,Edita’sdiversifiedcostofsalesandvastexpanseofdirectmaterialsused(bothrawandpackaging)continuetoactasanaturalhedgeagainstglobalcommoditypricemovements.

ThegrowthinCOGSisalsopartiallyattributedtotheincreaseinmanufacturingover-heads(MOH).MOHincreased24.2%y-o-yin3Q2015,representing12.4%ofrevenueand19.7%ofCOGS.ThemaincontributorstotheincreaseinMOHarewagesand

5 Breakdownswithinthissectionarederivedfromthecompany’smanagementreport.6PleaserefertotheSupplyChainsectionformoredetails.

Direct Material Breakdown 3Q2014

Direct Material Breakdown 3Q2015



salaries,aswellasanincreaseinelectricityandnaturalgasbillsandadditionalcostsrelatedtomachinerymaintenance.Withregardstoenergycosts,theincreasecamefrombothEdita’sincreasedutilizationcoupledwiththeincreaseinenergypricesintroducedbythegovernmentin2H2014aspartofitssteppedprogramtoremoveenergysubsi-dies.Edita’stotalelectricityandnaturalgasbillincreased55.1%overthe3Q2014leveltoreachEGP9.95million(14.9%ofthetotalMOH).Themajorincreasecameintheelectricitybill,whichrose70.4%overtheperiodasaresultofa25%increaseintariffcoupledwithac.44%increaseinEdita’susage.

Gross ProfitGross Profit Progression (EGP million)

Grossprofitin9M2015increased19.7%over9M2014levelstoEGP594.0million,lockinginamarginof37.6%,anincreaseoverthepreviousyear’smarginof36.7%,reflectingnotjusttheoverallincreaseinrevenuesbutalsotheintroductionofnewhigher-marginSKUsduring2015.However,in3Q2015,grossprofitincreased25.7%over3Q2014levelstoEGP197.8million,achievingagrossprofitmarginof36.9%,upfrom35.4%ayearearlier,butcominginbelowthe2Q2015levelof37.6%,mainlyow-ingtotheincreaseinMOHandtheincreasedenergyexpenses.

Gross Profit Margin by Product Segment

Contribution to Gross Profit by Product Segment 3Q2015 (EGP mn)

Contribution to Gross Profit by Product Segment 3Q2014 (EGP mn)





Onay-o-ybasis,grossprofitmarginsfortherusk,waferandcandysegmentsincreasedin3Q2015over3Q2014levels.TheimprovementsreflectEdita’scontinuedandsuc-cessfuleffortsforlineenhancementsandincreasedproductionefficienciesacrossallfactories,whetherasaresultoftweakingtheprocessesormorefocusedandtargetedproductionplanning.Withinthewafersegment,grossprofitmarginsincreasedfrom27.7%in3Q2014to36.8%in3Q2015,mostlyduetoefficiencies.Thegrossprofitmarginswithinthecandysegmentsurgedto24.2%in3Q2015from1.2%in3Q2014astechnicaldifficultiesthatwereovercomeattheendof2014andcapacityenhancementswereintroducedtotheproductionlines.

Grossprofitmarginwithinthecakesegmentincreasedto36.8%in3Q2015from34.9%in3Q2014,mainlyasaresultoftheincreaseincapacity.However,GPMwasdownfrom38.5%in2Q2015,reflectingtheloweraverageutilizationratesonthecakepro-ductionlines,asdiscussedabove.However,ManagementexpectsmarginsforthecakesegmenttopickupastheeffectoftheTwinkies’upsizingtakesfiltersintotherevenues.Grossprofitmarginforthecroissantbusinessrecorded39.3%in3Q2015(downfrom42.5%in3Q2014,yetupfrom2Q2015),reflectingthecompletionoftherampupofthenewestcroissantline(commissionedattheendofApril,withacapacityof17,000tonsperyear)andthenewhigher-marginSKU(MoltoMix)beinglaunchedonAugust13,2015.

Edita’scorecakeandcroissantproductsegmentsremainthemaincontributorstotheCompany’sgrossprofit.During3Q2015thecakeandcroissantsegments’contributiontogrossprofitwasEGP181.6million,constituting91.8%ofthetotalgrossprofit(and90%ofrevenue). Other ExpensesThethreemainexpensecategoriesrelatingtooperationsarenamely:SellingandDistri-butionExpenses(S&D),AdvertisingandMarketingExpenses(A&M)andGeneralandAdministrativeExpenses(G&A).TotalSG&AreachedEGP102.1million7,up10.0%overthe3Q2014levelandup12.3%q-o-q. S&Dexpensesincreased17.9%toEGP42.9million(8.0%ofrevenue)in3Q2015fromEGP36.4million(8.2%ofrevenue)in3Q2014.TheincreasereflectsEdita’sstrategyof fostering and increasing sales through the various retail channels and increasing its geographiccoverage.ThemainitemswithinS&Dexpensesaresalariesandwages,whichhavewitnessedtheirnormalannualincrease,aswellastruckrentalswhichhaveincreasedasEditabegantooutsourceitsprimarydistribution,thetransportationofproductsfromitsfactoriestothedistributioncenters.However,thiswascoupledwithac.30%decreaseintruck-fuelcostsinspiteoftheincreaseinenergycostssincelastyear.CommissionsandincentivestotheSalesRepresentativesincreasedby20.6%tosupportthelaunchofthenewproducts,namelyMoltoMixandTwinkiesExtra.ItmustbenotedthattotalS&Dexpensesincludecostitemsrelatingtothelaunchpreparationforthethreenewdistributioncentersthatarecomingonlinein4Q2015.

7SG&Abreakdownisderivedfromthecompany’smanagementaccountstoensureanaccuratedepictionofeachofEdita’sexpensesandhowtheyreflectonthebusiness.



A&Mexpensesincreasedby31%over3Q2014levelstoEGP24.6million8 and consti-tutedanall-timehighof4.6%ofrevenue.ThebulkofexpensesrelatestotheaggressiveTVadvertisingcampaigntomainlysupportEdita’snewlylaunchedcroissantproduct,MoltoMix.TopartiallycountertherisingratesofTVandoutdooradvertising,Editacontinuestodevelopitsadvertisingthroughsocialmediachannelsforitsentireproductrange.Havingsaidthat,Managementremainsverydiligentwithspending,keepingittotheminimumthatisrequiredtosupportnewproductsaswellasmaintainitscurrentmarketshares.ThedecisiontolaunchanewproductorcontinueproducinganexistingoneinvolvescarefullytakingitsassociatedA&Mspendingintoconsideration.

G&Aexpensesweredown8.3%over3Q2014toEGP34.5million,constituting6.5%ofrevenues.However,itmustbenotedthatduring3Q2014,G&AincludedEGP10millionofCSRspendingviaadonationtotheTahyaMisr(LongLiveEgypt)fund.Adjustingforthat,G&Aexpensesincreased24.9%y-o-y.OneofthemaincomponentsofG&Aincludessalariesandwagesthatincreasedc.23%y-o-yonthebackoftheincreasedheadcountaswellastheusual10%annualincreaseinsalariesandwages.Furthermore,asEditaismovingtowardamodelofcashdepositingbysalesrepresenta-tivesatremotecashpoints(Fawry),tobothstreamlineoperationsandminimizetheriskoflossortheft,thecostofthisserviceisbecomingarecurrentandpermanentcompo-nentofG&Aexpensesasitisgainingtractionandprovingtobeaveryviableoption.G&Aexpensesduring3Q2015alsoincludedthetrademarkregistrationfeesfortheHTTbrands across the region.

ProfitsfromOperationsincreased20.8%over3Q2014toEGP83.5million,withamar-ginof15.6%.Thisisa17.8%declineover2Q2015andisattributabletotheincreaseinSG&A,asdiscussedabove.

Interestexpensein3Q2015totaledEGP10.2million,upfromEGP6.1millionin3Q2014,astheCompany’sdebtincreasedinlinewithEdita’sstrategytofinanceitsexpansions,equallythroughdebtandtheCompany’sownresources.ThemostrecentloanwastheEGP90millionmedium-termloantofinancetheHostessbrandscontractssignedin2Q2015.Ontheotherhand,interestincomeincreasedtoEGP6.6millionin3Q2015fromEGP5.0millionayearearlierasamoreflexiblecash-managementpolicythathasallowedEditatocapitalizeonfavorableopportunitiesinthemarket.

Over3Q2015,EditabookedanFXlossofEGP4.1million(alossofEGP3.8millionfor9M2015)asaresultofarevaluationofliabilitiesinforeigncurrencyrelatingtothenewlinesamidtheweakeningoftheEGPagainsttheeuroandUSD.InJuly2015,theCentralBankofEgypt(CBE)undertooka20piasterdevaluationoftheEGPagainsttheUSDtoreachanofficialrateofEGP7.83/USD(correspondingeuro:EGPratesincreasedto8.82from8.58in2Q2015).

8Notethat3Q2014financialstatementswereauditedandhencedonotreflectthechangeinmarketingac-crualcalculationintroducedinJanuary2015,withtheeffectbeingmostprominentinthechangeinA&Mexpenses.



EBITDAEBITDAreachedEGP108.8millionin3Q2015withamarginof20.3%,higherthan3Q2014levelsinbothabsoluteandmarginterms(a28.8%riseover3Q2014witha19.0%margin).Giventheseasonalityofthebusiness,EBITDAshouldbeevaluatedona full-year basis.

Net EarningsNOPAT Progression (EGP million)

*3Q2015and9M2015NOPATincludeataxreversalofEGP23.9million

Duetotheissuanceofthenewtaxlawduring3Q2015thatbroughtdownthecorporatetaxrateto22.5%from30%retroactiveJanuary1,2015,EditahadataxreversalofEGP23.9millionin3Q2015.Accordingly,totaltaxesfor9M2015decreasedtoEGP55.9millionfromEGP98.0millionin9M2014.

NetProfitAfterTaxandMinorityInterestfor3Q2015increased163%from3Q2014levelstoEGP85.7million(marginof16.0%).AdjustedNOPAT9 for 3Q2015 is EGP 61.8million(11.5%margin).The9M2015adjustedNOPATincreased15.7%over9M2014toEGP188.2million,withan11.9%margin.

9AdjustedforEGP23.9milliontaxreversal.



Balance SheetTotalassetsincreasedtoEGP1.9billionin9M2015fromEGP1.6billionasatyear-end2014.ThebulkoftheincreaseemanatedfromtheincreaseinProperty,Plant&Equip-ment,astheextensionoftheE07plantmaterializedandthedeliveryofthethreenewlineswascompleted.Property,Plant&EquipmentincreasedtoEGP1.022billionin9M2015fromEGP818.4millionasattheyear-end2014,whileProjectsunderCon-structiondecreasedtoEGP166.9millionfromEGP197.4millionasattheyear-end2014afterthedeliveryofthenewextension.

TotalCAPEXfor9M2015reachedEGP230.3million,ofwhichEGP164.0millionwasexpansionCAPEX.ThemainitemofCAPEXduringthe9M2015wasEGP109.0mil-lionpertainingthecompletionofHallB(extensionoftheE07factory).TotalCAPEXrelatingtotheacquisitionoflandforthenewfactoryE08amountedtoEGP54.9mil-lion,includingthecostofthelandplotandrelatedinfrastructure.ItisalsoworthnotingthattherusklinecurrentlyunderinstallationintheE07factoryhasarelatedYTDCAPEXofEGP31.4million.

EditacontinuedtomaintainahealthyCash&CashEquivalentsandTreasuryBillswithabalanceofEGP355.9millionasattheendofSeptember2015,constituting18.4%oftheCompany’stotalassets.

OnWorkingCapitalcomponents,theinventorylevelscontinuetoreflectEdita’spolicyofmaintaininginventorycoverageofalldirectmaterials,onemonth’s-worthofsalesforlocallysourcedmaterialanduptothreemonthsofimportedmaterial,withanaverageof0.76monthsduring9M2015.Theinventoryoffinishedgoodsremainedatanaverageof2.5daysforthe9M2015.TradeReceivablesdecreasedtoEGP8.7millionin9M2015,reflectingEdita’scontinuedcashsalespolicy(inexcessof97%ofsalescontinuetobeconductedonacashbasis).Trade&OtherPayablesincreasedslightlytoEGP243.6millionasEditawasabletosecurebetterpaymentterms(c.50days)withseveralofitskeysuppliers.

TheCurrentPortionofLong-TermLiabilitiesincreasedtoEGP164.9millionfromEGP125.2millionasattheyear-end2014andLong-TermLoansincreasedtoEGP329.0millionfromEGP204.5millionattheendof2014.ThisisaresultofloansdrawndowntofinancethenewproductionlinesandtheHostesscontractssignedduring2Q2015.

TotalShareholders’EquityincreasedtoEGP1.038billionasattheendof9M2015,upfromEGP825.7millionasatDecember2014.



Egyptian Accounting Standards Reconciliation to IFRS

ThemaindifferencesfoundinEdita’sfinancialstatementsareduetoseveralfactors.Firstofall,theIFRSrequiresthatemployees’profitsharingbeexpensed,whiletheEgyptianAccountingStandardstreatthemasadistributionandhencedonotincludethemwithintheincomestatement.In1Q2015,netemployeeprofitsharingpaidwasEGP21.8million.Furthermore,thetreatmentofFXgainsandlossesaswellasgainsandlossesonfixedassetstransactionsdiffersinthecalculationofEBITDA.Addition-ally,anEGP1.7millionofadjustmentsinEBITDAcamefromtheEGP2.2millionIPOexpensesandEGP0.5millioninprovisions.

HereunderisthereconciliationbetweenEdita’sfinancialstatementsinEASwiththeIFRS-basedfinancialstatementsfor9M2015.

in EGP mn 9M2015 EAS Adjustment 9M2015 IFRS Net Sales 1,579.1 1,579.1COGS(excludingM.O.H) (791.8) - (791.8)M.O.H (184.9) (8.4) (193.3)Gross Profit 602.4 (8.4) 594.0Gross Profit Margin 38.2% 37.6%DistributionExp. (199.6) (5.9) (205.5)General&Admin.Exp. (112.8) (7.5) (120.3)OtherOperationalGains(Expenses)* 8.4 (3.8) 4.6Profit from Operations 298.4 (25.6) 272.8Profit from Operations Margin 18.9% 17.0%Provisions 4.0 - 4.0NetFinancingCost (8.6) 3.8 (4.8)OtherIncome(Expenses) (8.2) - (8.2)Profit Before Income Tax 289.8 (21.8) 268.0IncomeTaxExpense (55.9) - (55.9)Net Profit After Tax 233.9 (21.8) 212.1Net Profit After Tax Margin 14.8% - 13.4%EBITDA 355.2 (23.5) 331.7EBITDA Margin 22.5% 21.0%

*Includesdepreciation&royaltyexpense.Furthermore,EGP3.8millioninadjustmentsisrelatedtoFXlossesthataretreatedasFinanceCostsunderEASandOtherOperationalCostsunderIFRS.

Market DevelopmentsThesegmentsofthesnackfoodmarketinEgyptinwhichEditaoperatescontinuedtogrowy-o-y,withanevidentpickupingrowthrelativeto2Q2015giventheusualseasonalityanddipsindemandinthesnackfoodmarketingeneralinthesecondquarter.Thecroissantsegmentremainsthefastest-growingsegmentwithathree-yearCAGRof38%(basedon8M2015),whiletheslowestgrowth,albeitstillatc.10%,remainsthecakesegment,andhenceEdita’sstrategytolaunchseveralnovelproductswithinthissegmentduring2016tobolstergrowth.



Selected Segments of the Snack Food Market in Egypt – January to August 2015

Segment Market Size (EGP mn)* 2013-2015 CAGR*

SaltySnacks** 4,477 12.9%Cakes 1,121 9.6%Wafers 1,191 11.9%Croissant 539 38.0%

Please note that the market sizes depicted in the table above only represent eight months as AC Nielsen publishes retail audit data every two months.

*YTDAugust2015** Rusk market is 5.1% of total salty snacks Source:ACNielsenRetailAudits

AccordingtoNielsen,in3Q2015Editaslightlyimproveditsmarketsharesinboththecakeandcroissantsegmentsascomparedto2Q2015.However,overthe8M2015periodmarketsharesinbothcoresegmentsdeclinedfrom67%and69%to65%and67%,respectivelycomparedtosameperiodlastyear,attributedmainlytothelackofcapac-ityduringthefirstfewmonthsof2015astheextracakeandcroissantcapacitiesweredelayed.

Edita’smarketshareinruskscontinuedtodecline,reaching36%in8M2015from43%overthesameperiodlastyear,whilethemarketshareinwafersremainedat1H2015levelsof8%(upfrom5%in8M2014).

Source:ACNielsenRetailAudit,IPSOS1.RelativemarketsharecalculatedasEdita’smarketsharedividedbymarketshareoflargestcompetitor.2.US$/EGPof7.83asof30September-2015(CBE).3.Brandawarenessmeasurestheshareofrespondentsthatwerefamiliarwiththebrandinaided,spontaneous

consumer surveys.4.MarketshareforCandyisasatyearend2014

Market Position

Market Share4

Relative Market Share1

Av. Consumer Price

(EGP / US$2) BrandsBrand

Awareness3

Cakes 65% 9.5x 0.7/0.09 100%

Croissants 67% 3.1x 1.11/0.14 100%

Rusks 36% 0.6x 1.00/0.13 75%

Wafers 8% 0.3x 1.00/0.13 86%

Candy 8% 0.4x 2.05/0.26 NA

#1

#2

#1

#4

#3

90%of3Q2015 Revenue



MarketingIngeneral,therewasnochangeinEdita’soverallmarketpositioningthisquarter;Editaremainsbyfarthelargestplayerinitscroissantandcakesegments,withgrowingpres-enceinthecandysegment.Nevertheless,startingin3Q2015,theMarketingDepartmentembarkedonamoreaggressivemarketingstrategy,intensifyingmarketingandadvertisingactivitytosupportthenewcapacitiesandproductsintroducedduring2Q2015and3Q2015andcakesalesaswell,assignsofamarketsofteningbeguntoemergewithintheexistingcakeproductsonthemarket.Thisisevidentintheincreasedmarketingandadvertisingexpensesexplainedabove.

During3Q2015,Editalaunchedanewadvertisingcampaigntointroducethenewcrois-sant,MoltoMix,throughoutdoor,digitalmediaandTVcampaignsaswellasthroughthecontinuedbrandingofEdita’sdistributiontrucksandvans.AttheendofSeptember2015,EditalaunchedthenewTwinkiesExtraSKU,aTwinkiethatislargerinsizeandsellsatEGP1/unitpricepoint,whiledelistingthe50piasterTwinkiesSKU.TheadvertisingcampaigntolaunchtheTwinkiesExtraispredominantlyaTVcampaign.

FollowingthelaunchoftheMoltoMixandtheTwinkiesExtra,Editahas69SKUsunderproduction,asthreecandySKUsweredelistedin3Q2015.

Editacontinuestomaintain100%brandawarenessinitscoremarkets,namelythecrois-santandcakesegments.Waferawarenesscontinuestoimprove,reaching86%.Brandawarenessintherusksegmentremainsrelativelylowerthanintheothersegmentswithascoreof75%,butthisreflectstheCompany’smorefocusedcommunicationtosustainandsupportitsnicheconsumerbasethroughdigitalandbelow-the-linecommunicationgiventhelimitedproductioncapacitythusfar.

Withtheacquisitionofthetechnicalknowhowof11additionalnewproductsfromHostess,theMarketingTeamiscloselyworkingwiththeR&DDepartmenttoworkonthebrandingofnewproducts,withseveralproductshavingalreadybeenscheduledforconsumertestinginpreparationforlaunchin2016.

Editacontinuestofollowavigilantpricingstrategyduetothehighpriceelasticityofbothitsmarketandtargetconsumerbase.During3Q2015,averageconsumerpricesforcakesandcroissantsremainedrelativelystabley-o-y,increasingonlyby2.9%and0.1%,respectively.AverageconsumerpricesforboththeruskandwafersegmentsremainedunchangedasEditahasnotlaunchedanynewSKUsorundertakenanyupsizingofproductsinthesesegmentssince3Q2014.Ontheotherhand,averageconsumerpricesforthecandysegmentincreasedby19.7%y-o-yasthe“Fakka”producttookfulleffectafteritsintroductionontothemarketduringthelatterpartof2014.AstheFakkaSKUshavegainedpopularitysincetheirlaunch,EditainOctober2015launchedaFakkaSKUoftof-feestohaveallthecandytypesavailableinthislargerfamilypackvariation.



Development of Average Consumer Price by Product Segment

EGP 3Q2014 3Q2015 % ChangeCakes 0.67 0.69 2.9%Croissant 1.11 1.11 0.1%Rusks 1.00 1.00 0.0%Wafers 1.00 1.00 0.0%Candy 1.71 2.05 19.7%Average Edita 0.79 0.84 7.2%

Sales & DistributionDuring3Q2015,Edita’ssalesbychannelofdistributionreflectedtheCompany’sstrategyofincreasingrevenuesthroughtheretailandtraditionalsalespointsofsaleandawayfromwholesaledistribution,whilesimultaneouslygrowingsalesthroughallsaleschannels.Grosssalesthroughwholesalein9M2015grewby13.5%y-o-ytoEGP979millionandcontributed59.1%oftotalrevenues,comparedto61.0%overthesameperiodlastyear.Year-to-dategrosssalesthroughretailandtraditionaltradegrewstronglyby23.6%y-o-ytoEGP528.3millionandconstituted31.9%oftotalrevenuescomparedto30.2%overthesameperiodduring2014(contributionincreasedto33.0%in3Q2015).Revenueemanatingfromsupplyandkeyaccounts(moderntrade)remainedatthesamelevelsasthepreviousyearandcollectivelycontributedapproximately3%oftotal revenue.

Exportsincreasedby23%in9M2015over9M2014toEGP99millionandremainedapproximately6%oftotalgrosssales.ThePalestinianTerritories,Iraq,Syria,JordanandLibyaremainourcoreexportingcountries,constitutingaround83%oftotalexportrevenuein3Q2015.Itisworthmentioningthatduring3Q2015,exportstotheWestBankrepresented27%ofgrossexportsales.During3Q2015,Editaexportedto12countriesacrosstheMENAregionandAfricaincludingSaudiArabiaandSudan.

Bytheendof3Q2015,thetotalnumberofcustomersthatEditacateredtodirectlyin-creasedto63,131pointsofsale,upfrom60,209ayearearlier,reflectingtheCompany’sstrategyofexpandingitsproprietarydistributionnetworkacrossEgypt.TheCompanyhasplanstoopenthreenewdistributioncenters(inMenoufia,Alexandriaand15thMayCity)byyear-end,bringingthetotalto21distributioncenters.Thetotalnumberofretailandtraditionaltradepointsofsalesservicedgrew5%overthepreviousyearto57,902attheendofthequarter,whilethenumberofwholesalersservicedincreasebyonly2.8%.Thetop-100wholesalerscontinuedtodominatethebulkofsalesthroughwhole-salers,andcontinuetoconstitutearound39%oftotalsalesthroughthatchannel.

Theexpansionofthesalesforcetohandletheincreasedbusinesshasbeenexecutedeffi-ciently,wherethenumberofdistributionvansattheendof3Q2015increasedby10.8%over3Q2014to544,whilethesaleforceincreasedbyonly3.5%to1,003,reflectingtheemployee-optimizationprogramlaunchedinthelatterpartof2014.

Revenue Contribution by Distribution Channel 3Q2014

Revenue Contribution by Distribution Channel 3Q2015



Moreover,Editacontinuestogrowitssalesforceefficientlyinlinewithbothcurrentandplannedgrowth.Thegrowthinsalesin3Q2015throughwholesalerswasmainlyduetotheincreaseindropsize/sizeoftheinvoiceperwholesalerwhilegrowthinrev-enuethroughtheretailchannelswasafunctionofboththeincreaseindropsizeaswellastheincreaseinnumberofretailersovertheperiod.Thereweresignificantimprove-mentsinallthemainKPIsinboththewholesaleandretailsidesofthebusiness.Thenumberofsuccessfulvisits,coverageandinvoicesizeallgrewover3Q2014levelswhilewastedeclined.

Supply ChainTheSupplyChainDepartmentcontinuedtotrackglobalcommoditypricesinordertomaximizeEdita’soperationalefficienciesbylockinginpricesofdirectmaterialsatattractivelevels.During3Q2015,Editamanagedtomaintainahealthycostofsalesasa result of having secured several of the major direct materials at an average of around 8%lowerthanthebudget.Rawmaterialsremainthelargestconstituentofthedirectmaterialbill,being72.1%ofthetotaldirectmaterialcostsin3Q2015.

Over3Q2015,cocoapricescontinuedtoincreaseontheinternationalmarket;however,theSupplyChainDepartmentmanagedtosecureEdita’srequirementsofcocoaforFY2016atanaverageof15%lowerthanthecurrentprevailinginternationalprices.Anotherdirectmaterialworthnotingismilkpowder,whosepriceshavefluctuatedoverthecourseofthepastfewmonths.Aspriceshavesinceeased,theSupplyChainDepart-menttookadvantageandlockedinpricesofmilkpowderupuntil3Q2016. DuetothecontinueddevaluationoftheEGP,importeddirectmaterialsareslowlyin-creasinginproportiontothetotaltoreach26%in3Q2015,upfrom24%in2Q2015and21%in3Q2014.TheFXimportationbillofthedirectmaterialscontinuestobepartiallyfinancedthroughEdita’sexportproceeds.ExportsduringthequarteramountedtoEGP30million,whichcoverapproximately50%ofthetotalimportcosts.

Planningactivitiesshowedsignificantimprovementy-o-yduring3Q2015,intermsofincreaseddailyproductioncapacitiesacrossallthefactoriesandproductionlineutiliza-tions,aswellaskeepingtheinventorycoverageofallproductionmaterialsatanaver-ageof0.67monthsandfinishedgoodsatanaverageof2.2daysofsalesforthequarter.

Industrial OperationsDuring3Q2015,Editaproducedatotalof27,078tons,9.9%upfrom3Q2014levels,with90%overallutilizationrateacrossallthefactoriesandlines.Thiscorrespondsto779millionpacks,anincreaseof13.8%overthesamequarterlastyear.During9M2015,productionincreasedby12%to82.1thousandtonsand2.3billionpacks,a12%increaseonboththetonnageandpacksover9M2014.

Totalcakeproductionin3Q2015increased5.7%over3Q2014to16,514tons(atotalof521,000packs,a2.1%increaseover3Q2014).Thecakelinesoperatedatanaver-ageutilizationrateof91%,downfromthe100%utilizationratein3Q2014and93%in2Q2015,withthenewcakelinecommissionedinMarch2015operatingat84%utiliza-tion during 3Q2015.

Imported versus local direct material 3Q2014

Imported versus local direct material 3Q2015

Local Imported

Local Imported



Asexplainedearlier,therewasageneralrelativesofteninginthecakemarketduringthe3Q2015asreflectedintheACNielsenRetailAuditofthesegmentwherebythetotalcakemarketin3Q2015wasc.95%ofwhatitwasin2Q201510.AsperEdita’spolicy,wedonotkeepfinishedgoodsinventoryofmorethanthreedays,andhenceutiliza-tionrateswerebroughtdowntoreflectmarketdemand.Itmustbenotedthatdemandincakeshaspickedupastheback-to-schoolseasonstartedduringthelastweekofSeptember.However,theutilizationratesonthecakelineswillprobablynotreboundinstantaneouslygiventheupsizingoftheTwinkies(approximately37%oftotalcakesales)introducedattheendofSeptember,whichisthenormalcyclewhenupsizingproductsisinitiallyintroduced.

Totalcroissantproductionrecorded8,466tons,a22%increaseover3Q2014levelsand10%increaseversus2Q2015,reflectingtheincreasedcapacityofthenewlines.Totalpacksproducedincreased60.5%over3Q2014to200millionpacksreflectingtheincreasedcapacityintheMiniMoltosub-segment.Thecroissantlinesoperatedatanaverageutilizationrateof96%downfrom100%utilizationratein3Q2014reflectingthecapacityadditionsinspiteofthelongsnaglistonthecroissantlinecommissionedinApril2015thatprolongeditsramp-upphase.

Withintherusksegment,totalproductiondeclined27.8%in3Q2015to847,000tonsascomparedto3Q2014.Intermsofpacks,ruskproductiondeclinedby8.3%to25millionpacksy-o-y,yetremainedatthesameproductionlevelsas2Q2015.Itmustbenotedthatcomparedto3Q2014,Editahadimplementedsomedownsizingtotheruskpacks.Furthermore,during3Q2015,duetothegeneralshortageofbluecollarsonthemarket,Editawasforcedtodirectsomeofthelaborfromtherusklinetothecroissantsegment,targetingbettermanagementofresourcesgiventhecapacityexpansionsandstrongmarket demand for croissants.

Forthewafersegment,totalproductionreached17millionpackscomparedto11mil-lionpacksin3Q2014,butthisislowerthanthe28.3millionpacksproducedin2Q2015.Thistranslatedinto650tonsofproductionduringthequarter,a17%growthover3Q2014.Thedeclineismostlyattributabletotheseasonalityfactorandlowerdemandduringthesummerforcoatedwafers,whichconstituteapproximately80%ofEdita’swafersales.Accordingly,theuncoatedwafers,whichisasmallersizedSKU,werethemainrevenuedriverforthewafersegmentin3Q2015.

Forcandy,totalproductiongrewby68%to601tonsin3Q2015,correspondingto16millionpacks.Theintroductionofthe“Fakka”SKU(thelargerfamily-sizedpack)attheendof2014isthereasonthegrowthinpackswasonly47.0%whencomparedto3Q2014.

10PleasenotethatACNielsenRetailAuditsareconductedeveryothermonth.Accordingly,thetwomonthsendingJune2015andAugust2015wereusedasanindicationofthe2Q2015and3Q2015,respectively.



Thetablebelowshowsthecomparativeactualproductionperproductsegmentfor3Q2015ascomparedto3Q2014inbothtonnageandnumberofpacks:

3Q2014 3Q2015 Growth(%) 3Q2014 3Q2015 Growth

Cake 15,629 16,514 5.7% 510 521 2.1%Croissant 6,917 8,466 22.4% 125 200 60.5%Rusks 1,173 847 -27.8% 27 25 -8.3%Wafer 554 650 17.4% 11 17 47.7%Candy 358 601 67.9% 11 16 47.0%Total 24,630 27,078 10% 685 779 14%

ItisworthnotingthatthetotalnumberofemployeesintheIndustrialOperationsDivi-sionwas2,976,upfrom2,921in2Q2015.Thisshowsaminimalincreaseinnumberoflabor,despitecapacityadditionsyeartodate.ThisismostlyattributabletothestoppageofthreeTwinkieslinesasaresultoftheupsizing,aswellastheheadcountoptimizationprogram.Editacurrentlyhasalaborshortageofaround200bluecollars.ShortageoflaborincreasesmanufacturingoverheadsasitimpactsthemagnitudeofovertimepaidbytheCompany.

AnotherimportantissuetonotewithintheIndustrialOperationsDivisionisthatthenewrusklineintheE07factoryiscurrentlyintheinstallationphaseandisexpectedtostartcommissioning in the second half of December 2015.

OntheR&Dlevel,3Q2015sawthelaunchoftheMoltoMix,thedouble-filledcrois-sant,whichhassincegainedtractionandgreatcustomersatisfaction,surpassingthebudgetbycloseto400%.OnSeptember27,2015,EditalaunchedtheTwinkiesExtra–thelarger-sized,higher-marginTwinkies.Goinginto2016,R&Disintheadvancedtrialandfinalizationstagesofnewcroissantflavors,severalcakeproducts(bothnovelproductsdevelopedin-houseaswellastheadaptationofseveralcakeproductswhosetechnicalknowhowwasacquiredfromHostessBrands),severalnewflavorsofrusksandvariationsofthepate/strudel(thefirstofwhichistobelaunchedin1Q2016).

Human ResourcesEditacontinuestobecommittedtodevelopits5,360employeesbeingastrongbelieverinhumancapitalasthemaindrivingforcefortheCompany.TurnoverinEditaremainsverylowandiscurrentlyat1.75%.Havingsaidthat,Edita,aswiththeindustrialsector,hasbeenexperiencingshortagesinthebluecollaremployeeswithsome200vacancies.Asaresponse,EditacontractedseveralthirdpartiestosupplytheCompanywithlabor,afeatthathassofarhelpedeasetheshortage(alongwiththetrainingresultingfromtheemployee-optimizationprogramthathasbeenongoingsincelastyear).Inadditiontothat,ManagementhasenteredintoanagreementwiththeMinistryofSocialSolidaritytobepartoftheirprogramtoprovidejobsfororphans.Accordingly,andaspartofEdi-ta’sCSRprogram,theCompanyreceivesthecandidates,conductsaninitialassessmentandtrainsthosecandidatesitwillhire.ItisworthnotingthattotalemployeeswithintheIndustrialOperationsDivisioniscurrently2,976employees,upfrom2,921in3Q2014,inspiteoftheadditionofthreenewlines,thisbeingmostlyattributabletotheheadcountoptimisationprogramtheEditalaunchedin2014.



Investor Contacts

Ms.DinaEl-SonbatyVice-PresidentInvestorRelations&CorporateAffairs

T:+20238516464M:[email protected]

Ms.MennaShamsElDinInvestorRelations&BusinessDevelopmentManager

T:+2023851-6464M:[email protected]

About Edita Food IndustriesEdita,foundedin1996andheadquarteredinEgypt,isaleaderinthegrowingEgyp-tianpackagedsnack-foodmarket.TheCompanymanufactures,marketsanddistrib-utesarangeofbrandedbakedsnackproductsincludingpackagedcakes,croissants,rusks(bakedwheat)andwafersaswellasselectedconfectionary/candyproducts.TheCompany’slocalbrandportfolioincludeshouseholdnamessuchasTodo,Molto,BakeRolz,BakeStix,FreskaandMiMix.TheCompanyalsohasexclusiveownershipoftheinternationalHTTbrandsTwinkies,Hoho’sandTigerTailinEgypt,Libya,Jordan,Palestine,Morocco,Algeria,Tunisia,Syria,Lebanon,Iraq,Bahrain,Oman,theUAE,Kuwait,QatarandSaudiArabia,andispartytoatechnicalassistanceandknow-howagreementtomanufacture11additionalHTTbrandsacrossitsterritories.TheCompanyholdsstrongnumber-onemarketpositionsinitscorecakeandcroissantsegments,anumber-twomarketpositioninrusksandgrowingmarketpositionsinthewafersandcandysegments.In2014,theCompanyderivedc.94%ofitsrevenuefromEgyptandc.6%fromover14regionalexportmarkets.Learnmoreatir.edita.com.eg

Forward Looking StatementsThiscommunicationcontainscertainforward-lookingstatements.Aforward-lookingstatementisanystatementthatdoesnotrelatetohistoricalfactsandevents,andcanbeidentifiedbytheuseofsuchwordsandphrasesas“accordingtoestimates”,“aims”,“anticipates”,“assumes”,“believes”,“could”,“estimates”,“expects”,“forecasts”,“in-tends”,“isoftheopinion”,“may”,“plans”,“potential”,“predicts”,“projects”,“should”,“totheknowledgeof”,“will”,“would”or,ineachcasetheirnegativesorothersimilarexpressions,whichareintendedtoidentifyastatementasforward-looking.Thisapplies,inparticular,tostatementscontaininginformationonfuturefinancialresults,plans,orexpectationsregardingbusinessandmanagement,futuregrowthorprofitabilityandgeneraleconomicandregulatoryconditionsandothermattersaffectingtheCompany.

Forward-lookingstatementsreflectthecurrentviewsoftheCompany’smanagement(“Management”)onfutureevents,whicharebasedontheassumptionsoftheManage-mentandinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatmaycausetheCompany’sactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedbytheseforward-lookingstatements.Theoccurrenceornon-occurrenceofanassumptioncouldcausetheCompany’sactualfinancialconditionandresultsofoperationstodiffermateriallyfrom,orfailtomeetexpectationsexpressedorimpliedby,suchforward-looking statements.

TheCompany’sbusinessissubjecttoanumberofrisksanduncertaintiesthatcouldalsocauseaforward-lookingstatement,estimateorpredictiontodiffermateriallyfromthoseexpressedorimpliedbytheforward-lookingstatementscontainedinthisprospectus.Theinformation,opinionsandforward-lookingstatementscontainedinthiscommuni-cationspeakonlyasatitsdateandaresubjecttochangewithoutnotice.TheCompanydoesnotundertakeanyobligationtoreview,update,confirmortoreleasepubliclyanyrevisionstoanyforward-lookingstatementstoreflecteventsthatoccurorcircumstancesthat arise in relation to the content of this communication.

Shareholder Structure as of 3Q15